Understanding Form ADT-1 for Auditor Appointment
Form ADT-1 is a mandatory document for companies in India to inform the Registrar of Companies (ROC) about the appointment of their auditor after the Annual General Meeting (AGM). This article clarifies the purpose and required details for Form ADT-1, outlining the submission deadline, necessary accompanying documents, and applicable filing fees. It also details penalties for late submissions and provides important considerations for various appointment scenarios, including e-filing procedures and relevant rule amendments from 2018.
Understanding Form ADT-1 for Auditor Appointment
Companies are required to notify the Registrar of Companies (ROC) regarding the appointment of their auditor following the Annual General Meeting (AGM). This notification is submitted through Form ADT-1, adhering to specified procedures.
What is Form ADT-1?
Form ADT-1 serves as the official document for a company to inform the Registrar of Companies about the appointment of an auditor subsequent to its Annual General Meeting (AGM). This filing is mandatory under Section 139 (1) of the Companies Act 2013 and must be completed annually following the AGM where the auditor's appointment took place.
Details of Auditor to be Submitted
The form requires submission of comprehensive information about the auditor, including whether they are an individual practitioner or a firm. Key details encompass the auditor's PAN, Chartered Accountancy membership number, contact address, email address, the duration of their appointment, the specific date of appointment, the date of the Annual General Meeting (AGM), and, if applicable, the membership number of any previous auditor who vacated the position, along with the date and reason for such a casual vacancy.
When Should You File Form ADT-1?
Companies must file Form ADT-1 with the Registrar of Companies within 15 days of the auditor's appointment date. For instance, if a company's Annual General Meeting occurred on September 30, 2018, the corresponding Form ADT-1 would need to be filed by October 15, 2018.
Documents to be Filed Along with Form ADT-1
The following documents must accompany Form ADT-1 during its submission:
- A copy of the company's Board resolution.
- Written consent provided by the appointed auditor.
- A certification from the auditor confirming their eligibility and lack of disqualification for the appointment.
Fee for Filing Form ADT-1
The fees associated with filing Form ADT-1 with the Registrar of Companies vary based on the company's share capital value, as detailed in the table below:
| Serial No. | Company Share Capital Value | Fee (Rupees) |
|---|---|---|
| 1 | Less than 1,00,000 | 200 |
| 2 | 1,00,000 to 4,99,999 | 300 |
| 3 | 5,00,000 to 24,99,999 | 400 |
| 4 | 25,00,000 to 99,99,999 | 500 |
| 5 | 1,00,00,000 or more | 600 |
| 6 | Company without share capital | 200 |
Penalty for Non-Filing of Form ADT-1 on Time
Failure to file Form ADT-1 within the stipulated deadline incurs penalty fees, which escalate with the duration of the delay, as outlined below:
| Serial No. | Filing Delay (Number of Days) | Penalty Amount |
|---|---|---|
| 1 | Up to 30 | 2 times the Normal Fees |
| 2 | More than 30 to 60 | 4 times the Normal Fees |
| 3 | More than 60 to 90 | 6 times the Normal Fees |
| 4 | More than 90 to 180 | 10 times the Normal Fees |
| 5 | More than 180 | 12 times the Normal Fees |
Key Considerations for Form ADT-1
Crucial considerations regarding Form ADT-1 filing include:
- Submission of Form ADT-1 is compulsory for all company types, including listed, unlisted, public, and private entities.
- While some believe Form ADT-1 is not necessary for the initial auditor appointment, as Rule 4 (2) of the Company Rules, 2014, specifically references Section 139 (1) for auditor appointments rather than Section 139 (6) for first auditor appointments, it is advisable to file it for the first auditor as well.
- The primary responsibility for filing Form ADT-1 rests with the company, not the auditor.
- This form must also be filed when an auditor is appointed to fill a casual vacancy.
E-filing of Form ADT-1
Electronic filing of Form ADT-1 is available. The form can be accessed and downloaded from the official website of the Ministry of Corporate Affairs (MCA). Upon submission, the e-form undergoes automatic approval, and once registered by the relevant authority, an acknowledgment email is dispatched to the company's registered email address.
Companies (Audit and Auditors) Amendment Rules, 2018
The Ministry of Corporate Affairs (MCA) introduced amendments to the Companies (Audit and Auditors) Rules, 2014, in February 2018. These changes involved replacing Form ADT-1 and Form ADT-2 with updated versions. Consequently, the revised Form ADT-1 is now accessible on the MCA website for the current financial year. The current forms can be viewed here.