What is Form ADT 1? Form ADT1 For Appointment Of Auditor

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When a company appoints an auditor, it is obliged to accept the appointment of an auditor to the Registrar of Companies (ROC) in a specified manner in compliance with section 139(1) of the new company act 2013. In this reason the Form ADT-1 is used.

Under Section 139(1) of the New Companies Act 2013, a company shall disclose its appointment to the auditor and, at the same time, notice of such appointment must be filed with the company registrar within 15 days of the appointment. Such note about the appointment of an auditor must be filled out in the MCA portal in Form ADT 1 as per the law.

I’ll narrate you a brief understanding of the ADT-1 type through this post. This is where we go:

What is Form ADT 1?

Form ADT-1 may be referred to an intimation sent by any company to the Registrar of Companies concerning the appointment of an auditor following the assumption of its Annual General Meeting u/s 139(1) of the Companies Act , 2013 (fourth proviso to subsection ( 1)).

According to Sec 139 (1) of the new Companies Act 2013, it is mandatory to file this form every year with the Registrar Of Companies as a notice of appointment of auditor after the AGM wherein the new auditor was appointed.

When to file ADT-1 Form?

IN CASE OF NEW COMPANY INCORPORATION:- Form ADT-1 is expected to be filed within 15 days of the company’s first board meeting, to be held within 30 days of incorporation in which the auditor shall be named by the company’s board of directors.

FOR EXISTING COMPANY:- The corporation will file Form ADT-1 with the company’s registrar within 15 days of the AGM in which Auditor was appointed or reappointed as the case may be. For e.g., if an AGM of the company was held on 30 August 2020, the company should file Form ADT-1 by 14 September 2020.

Also Read:

Penalty u/s. 270A and 271(1)(c)

What are the Documents required?

Following documents are required:

  1. Copy of Resolution of the Board of Directors announced at the Annual General Meeting
  2. Written consent on nomination from the Auditor
  3. A confirmation from the Auditor that he/she is not disqualified or unable to be named as auditor u/s 141
  4. Copy of the company’s intimation to an auditor

ADT 1 Form Filing Fees:

The filing fees of form ADT 1 with the registrar of companies are as follows:

Nominal Share Capital of the Company Fee in (INR)
Under 1 lakh 200
Falls from 1 lakh to 5 lakhs 300
Is between 5 lakhs and 25 lakhs  400
Falls from 25 lakhs to 1 crore 500
More than or equal to 1 crore 600

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What are the Amendments

Delayed Filing Penalty

Late filling of ADT-1 form will impose following penalties:

Sr.No Delay in Filing (in no. of days) Penalty Leviable
1 Up to 30 days Twice the Normal Fees
2 More than 30 days but less than 60 days 4 x Normal Fees
3 More than 60 days but less than 90 days 6 x Normal Fees
4 More than 90 days but less than 180 days 10 x Normal Fees
5 More than 180 days 12 x Normal Fees

Points to remember

  1. For all companies listed/ unlisted/ public/ private/ others, submitting Form ADT 1 is compulsory.
  2. For the appointment of the first auditor, there is a general thinking that Form ADT 1 is not required to register. That is because Rule 4(2) of the laws of the company addresses only Sec 139(1) – appointment of auditors and not Sec 139(6)- Appointment of the first auditor. However, it is a good practice to file Form ADT 1 for the appointment of the first auditor too.
  3. Even in case the auditor is named for a casual vacancy, Form ADT -1 must be filed.
  4. Form ADT-1 can be submitted online electronically via the website of the Ministry of Corporate Affairs.
  5. It will auto-approve the e-form uploaded.
  6. When the organization also files its AOC-4, they must also note the ADT-1 form SRN number.

Conclusion:

Form ADT-1 matters most when it comes to appointing an auditor to your company. Such Forms are required for businesses to file within the specified 15-day deadline. Where the Company is appointed as First Auditor pursuant to Section 139(6) of Company Act 2013. It can therefore be concluded, in the light of the above provisions that we do not need to file Form ADT-1 mandatorily for the appointment of the Company’s first auditor.

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