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Home > GST > Help Center > Guide on Form ADT1 Last Updated: Feb 13th 2023

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.

1. First Auditors (Newly incorporated companies)

  1. First Auditor of the company shall be appointed by the Board of Directors within 30 days of the incorporation of the company.
  2. First Auditor will hold the office until the conclusion of First Annual General Meeting
  3. 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)

  1. For the existing companies, Auditor will be appointed at the Annual General Meeting every year.
  2. Form ADT 1 is required to be filed with Registrar of Companies (ROC) within 15 days from the Annual General Meeting (AGM)
Example:

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

  1. For Company not having share capital – Rs 200
  2. For Company having Share Capital
S.NoShare CapitalFee Applicable
1Less than Rs 1,00,000Rs 200
2Rs 1,00,000 to Rs 4,99,999Rs 300
3Rs 5,00,000 to Rs 24,99,999Rs 400
4Rs 25,00,000 to 99,99,999Rs 500
5Rs 1,00,00,000 or moreRs 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.NoPeriod of delayAdditional Fee
1Up to 30 days2 times of normal fees
2More than 30 days and up to 60 days4 times of normal fees
3More than 60 days and up to 90 days6 times of normal fees
4More than 90 days and up to 180 days10 times of normal fees
5More than 180 days12 times of normal fees

5. Rotation of Auditors

Every Listed Company and other prescribed class or classes of companies shall not appoint or reappoint.

  1. An Individual as auditor for more than 1 term of 5 consecutive years
  2. An audit firm as auditor for more than 2 terms of five consecutive years
Note for Small Companies:
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

  1. A Special notice is received for removal of auditor
  2. Board meeting will be held to decide about removal and pass a special resolution.
  3. Filing Application to Central Government within 30 days of board meeting
  4. 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.
Note:
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.


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