Form ADT -1

Form ADT – 1 is disclosure to the Registrar of Companies (ROC) regarding the appointment of the Auditor in the Annual General Meeting (AGM) under Section 139 of the Companies Act,2013. 

Board members of every company in the first Annual General Meeting, appoint an individual or a firm as an auditor, who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting.

An auditor is appointed for not less than five years as per section 139 of the Companies Act, 2013, and for every appointment Form ADT-1 shall file by the company to the Registrar of Companies. 

When should Form ADT-1 be filled with MCA?

According to Section 139 of the Companies Act, 2013 the company shall inform the auditor concerned of his or their appointment, and also file a notice of such appointment with the Registrar within fifteen days of the meeting in which the auditor is appointed.

In other words, for newly incorporated companies Form ADT-1 shall file within 15 days of its first general meeting, and for IFSC companies within 30 days of its first general meeting. For existing companies, Form ADT-1 shall be filed within 15 days of the AGM in which the Auditor has been appointed or reappointed as the case may be by the company and on the portal of MCA in the prescribed format.

According to Section 96 of the Companies Act, 2013 the first annual general meeting (AGM), it shall be held within a period of nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year. 

So, if an existing company closes its financial year on 31st March, then the AGM should hold within 6 months i.e, 30th September, and Form ADT-1 should be filed within 15 days of the AGM. If AGM is held on 30th September in which the auditor has been appointed, then the due date for filling Form ADT-1 is 15th October. 

Documents required to be filled with Form ADT-1

• Copy of written consent given by auditor;

• Copy of resolution passed by the board/company in case Nature of appointment is other than ‘Auditor appointed by the Tribunal’ or ‘Others’;

• Copy of the order of the Tribunal in case Nature of appointment is ‘Auditor appointed by the Tribunal;

• Copy of the intimation sent by company;

• Copy of the letter of appointment from C&AG;

• A certificate from the Auditor that he is not disqualified or ineligible to be appointed as an Auditor u/s 141;

• Optional attachments, if any. 

Important points regarding Form ADT-1

• The format of ADT-1 can be downloaded from www.mca.gov.in  

• An E-form for ADT-1 is auto-approved. 

• Form ADT-1 is compulsory to file after every AGM in which the auditor has been appointed.

• The appointment includes the re-appointment of the auditor. 

• Form ADT-1 shall be filled in case of appointment of a joint auditor, or in case of appointment for the casual vacancy. 

• An auditor is eligible for reappointment for not less than 2 terms i.e, 10 years.

Fees for filing Form ADT-1

1.    Fee for filing e-Forms or documents in case of the company has a share capital 

2.    Fee for filing e-Forms or documents in case of a company does not have share capital

Fee applicable - Rupees 200 per document

Penalty on late filing of Form ADT-1

In the case of an IFSC company, the additional fee shall be applicable only after the expiry of 30 days from the date of appointment.

Conclusion 

To protect the interest of the shareholder an auditor who is not disqualified under section 141 of the Companies Act,2013 should appoint by a company. For appointment or reappointment of an individual auditor or auditor’s firm in a board meeting, should intimate to the registrar of companies (ROC) through Form ADT-1 within 15 days of the board meeting. 

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Author:

Navita Rohilla
Delhi
Pursuing L.L.B from M.E.R.I Law College