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Guide on Form ADT 1 (appointment of an auditor)
Every company must have a statutory audit irrespective of its turnover and profit. Even the loss-making companies or companies with 0 turnover should undergo statutory audit. Statutory audit must be conducted by an auditor.
Section 139 of the companies act 2013 provides the provision for appointment of auditors for the company.
This document covers
- First Auditors (Newly incorporated companies)
- Auditor Appointment (For Existing Companies)
- MCA Fees for filing ADT 1
- Additional Fee for belated filing of ADT 1
- Rotation of Auditors
- Removal of Auditor
- Resignation of Auditor
1. First Auditors (Newly incorporated companies)
- First Auditor of the company shall be appointed by the Board of Directors within 30 days of the incorporation of the company.
- First Auditor will hold the office until the conclusion of First Annual General Meeting
- Form ADT 1 is required to be filed with Registrar of Companies (ROC) within 15 days from the date of appointment
2. Auditor Appointment (For Existing Companies)
- For the existing companies, Auditor will be appointed at the Annual General Meeting every year.
- Form ADT 1 is required to be filed with Registrar of Companies (ROC) within 15 days from the Annual General Meeting (AGM)
Radha Private Limited has conducted its Annual General meeting on Sep 29th 2022 an appointed Mr Krishna as Auditor of the company in its second AGM. Mr Krishna needs to file Form ADT 1 within 15 days from Sep 29th 2022 i.e., Oct 13th 2022.
3. MCA Fees for filing ADT 1
Every form which is filed with ROC will have Govt fee. The Government fee is as follows
- For Company not having share capital – Rs 200
- For Company having Share Capital
| S.No | Share Capital | Fee Applicable |
|---|---|---|
| 1 | Less than Rs 1,00,000 | Rs 200 |
| 2 | Rs 1,00,000 to Rs 4,99,999 | Rs 300 |
| 3 | Rs 5,00,000 to Rs 24,99,999 | Rs 400 |
| 4 | Rs 25,00,000 to 99,99,999 | Rs 500 |
| 5 | Rs 1,00,00,000 or more | Rs 600 |
4. Additional Fee for belated filing of ADT 1
If the form ADT 1 is not filed within due date, Additional fee will be levied by MCA as follows.
| S.No | Period of delay | Additional Fee |
|---|---|---|
| 1 | Up to 30 days | 2 times of normal fees |
| 2 | More than 30 days and up to 60 days | 4 times of normal fees |
| 3 | More than 60 days and up to 90 days | 6 times of normal fees |
| 4 | More than 90 days and up to 180 days | 10 times of normal fees |
| 5 | More than 180 days | 12 times of normal fees |
5. Rotation of Auditors
Every Listed Company and other prescribed class or classes of companies shall not appoint or reappoint.
- An Individual as auditor for more than 1 term of 5 consecutive years
- An audit firm as auditor for more than 2 terms of five consecutive years
Rotation of Auditors is not applicable to small companies and one person companies
6. Removal of Auditor
The auditor appointed in AGM can be removed from his office before the expiry of his term. The company needs to follow certain process for the same
- A Special notice is received for removal of auditor
- Board meeting will be held to decide about removal and pass a special resolution.
- Filing Application to Central Government within 30 days of board meeting
- The company shall hold the general meeting within 60 days of receipt of approval of Central Government for passing the special resolution and ADT 2 needs to be filed.
The concerned auditor shall be given reasonable opportunity of being heard before taking any action for removal of auditor
7. Resignation of Auditor
If the Auditor has resigned from the company, he should file form ADT 3 with the company and registrar within 30 days from the date of such resignation.