Introduction

The appointment of auditors is a crucial compliance requirement for companies in India. The Ministry of Corporate Affairs (MCA) mandates the filing of ADT-1 Form to notify the Registrar of Companies (ROC) about the appointment of an auditor. This blog provides a detailed insight into ADT-1 Form, its significance, filing process, and legal provisions.

Understanding Form ADT-1

What Is ADT-1 Form?

ADT-1 Form is an official document that companies must file with the Registrar of Companies (ROC) to inform about the appointment of an auditor. It is a crucial part of corporate governance and financial transparency.

Why Is ADT-1 Important?

• Legal Compliance: As per Section 139 of the Companies Act, 2013, every company must appoint an auditor and notify the ROC.

• Financial Integrity: Ensures that a qualified auditor is appointed to review and audit the financial statements.

• Avoids Penalties: Failure to file ADT-1 on time can result in legal consequences and penalties for the company.

Who Needs to File ADT-1 Form?

Filing of ADT-1 Form is required for:

• Private Limited Companies

• Public Limited Companies

• One Person Companies (OPC)

• Limited Liability Partnerships (LLPs are not required to file ADT-1)

Legal Framework for ADT-1 Filing

Under Section 139(1) of the Companies Act, 2013, every company (except government companies) must appoint an auditor for a term of five years in its Annual General Meeting (AGM). The appointment must be communicated to the ROC by filing ADT-1 Form.

When Should ADT-1 Be Filed?

The ADT-1 Form must be filed within 15 days of appointing an auditor in the AGM. Missing this deadline can lead to penalties.

Step-by-Step Process to File ADT-1 Form

Filing ADT-1 Form is an online process done through the MCA portal. Here’s how:

1. Login to the MCA Portal: Access the Ministry of Corporate Affairs (MCA) website.

2. Download ADT-1 Form: Obtain the latest ADT-1 format from the MCA website.

3. Fill in the Required Details:

• Company Name and CIN (Corporate Identification Number)

• Details of the Appointed Auditor

• Auditor’s Membership Number & Firm Registration Number

• Date and Term of Appointment

4. Attach Necessary Documents:

• Copy of Board Resolution

• Consent Letter from Auditor

• Certificate from Auditor confirming eligibility

5. Pay the Filing Fee: The fee varies based on company type and share capital.

6. Submit the Form: Upload the form on the MCA portal and verify using a Digital Signature Certificate (DSC).

7. Acknowledgment: Upon successful submission, an acknowledgment is generated.

What Happens If ADT-1 Is Not Filed on Time?

Failure to file ADT-1 Form within the stipulated time can lead to penalties. The company and responsible officers may be liable for fines under Section 147 of the Companies Act, 2013.

Can ADT-1 Be Revised or Resubmitted?

Yes, in case of errors or changes in auditor details, ADT-1 Form can be re-filed by submitting a revised version.

Conclusion

Filing ADT-1 Form is a mandatory requirement ensuring that companies comply with the Companies Act, 2013 and maintain financial transparency. By following the correct procedure and deadlines, companies can avoid penalties and ensure smooth corporate governance.

For hassle-free filing of ADT-1 Form, consult with professional Chartered Accountants who specialize in corporate compliance.

Source: https://diigo.com/0z29av