ALL YOU NEED TO KNOW FORM ADT 1?
Introduction
ToggleALL YOU NEED TO KNOW FORM ADT 1?
INTRODUCTION
ADT-1 Form for Appointment of First Auditor. As per the Companies Act 2013, Form ADT-1 must be filed with the Registrar of Companies (ROC) within 15 days of the Annual General Meeting (AGM) at which the auditor was appointed or reappointed. For newly incorporated companies, the form must be filed within 15 days of the first board meeting, which should be held within 30 days of establishment. it is mandatory for companies to inform the Registrar of Companies (ROC) about the appointment of an auditor through Form ADT-1. This article provides a comprehensive overview of the filing fees for ADT-1, the process of filing the form with the Ministry of Corporate Affairs (MCA), the deadline for submission, and the necessary documentation required for ADT-1 filing.
Important point for filing form ADT-1
- The responsibility of filing Form ADT-1 lies with the company and not the auditor.
- Filing Form ADT-1 is mandatory for all types of companies, including listed, private, public, and unlisted.
- If an auditor is appointed as a casual vacancy in a company, Form ADT-1 must also be filed.
- Although it is not mandatory to file Form ADT-1 for the first auditor appointment, it is recommended to do so.
The following information is required to be filled in Form ADT-1:
- Name of the company
- Company identification number (CIN)
- Global location number (GLN)
- Whether the company is falling under any class of companies as per section 139(2) of the Companies Act, 2013
- Name of the auditor
- Auditor’s registration number
- Income-tax permanent account number (PAN) of the auditor or auditor’s firm
- Whether the auditor is a member of the Institute of Chartered Accountants of India (ICAI)
- Whether the auditor is a practicing auditor
- Tenure of previous appointment(s) of the auditor or auditor’s firm or its member in the same company
- Date of the annual general meeting (AGM) in which the auditor was appointed
ADVANTAGES
Legal Compliance: Filing Form ADT-1 is a legal requirement under the Companies Act, 2013. Complying with this requirement ensures that a company is meeting its statutory obligations.
Transparency: The form promotes transparency by informing the RoC and stakeholders about the appointment or reappointment of the auditor. This transparency is essential for maintaining the trust of shareholders and investors.
Auditor’s Acceptance: Filing this form also serves as formal communication to the appointed auditor, confirming their acceptance of the role. This can help in avoiding misunderstandings or disputes regarding the appointment.
Avoiding Penalties: Filing Form ADT-1 within the stipulated time frame helps avoid penalties and legal consequences that may arise from non-compliance with statutory requirements.
Record Maintenance: The form ensures that there is an official record of the auditor’s appointment, which can be useful for future reference, audits, or any regulatory inquiries.
DISADVANTAGES
Strict Timelines: There are strict timelines associated with filing Form ADT-1. Failure to file within the specified time frame can result in penalties, which can be a disadvantage for companies that may face delays in appointing or reappointing an auditor.
Auditor’s Consent: The auditor’s consent to act as the auditor must be obtained and attached with the form. If the auditor declines or withdraws consent after filing, it can lead to complications and the need for further filings.
Documentation: Companies need to ensure that all required documentation, such as the auditor’s consent and board resolutions, is in order before filing the form. Incomplete or incorrect documentation can result in delays and non-compliance.
Auditor’s Qualifications: Companies must appoint a qualified auditor who meets the eligibility criteria specified in the Companies Act. Failure to do so can lead to issues during the filing process.
Public Disclosure: Some information in Form ADT-1, such as the auditor’s details, is publicly accessible through the RoC, which means that certain business details may become accessible to competitors and other interested parties.
CONCLUSION
Form ADT-1 is a mandatory form that must be filed by all companies with the Registrar of Companies (ROC) within 15 days of the appointment of an auditor. The form is used to inform the ROC of the appointment of the auditor and to provide certain information about the auditor, such as their name, registration number, and PAN number. Filing Form ADT-1 is important for a number of reasons. It helps to ensure compliance with the Companies Act, 2013. It establishes a paper trail that can be used to prove that the company has complied with the law. It is a good corporate governance practice. It helps to protect the company’s interests by ensuring that it has a qualified auditor who is independent of the company.
HOW AURIGA ACCOUNTING HELP YOU
Compliance Guidance: Auriga Accounting can provide you with guidance on the legal requirements and compliance standards associated with Form ADT-1. They can help you understand the specific rules and regulations governing auditor appointments and ensure that your company complies with them.
Form Preparation: Auriga Accounting can assist you in accurately preparing Form ADT-1. This includes helping you gather the necessary information, filling out the form correctly, and ensuring that all required fields are completed accurately.
Documentation: Auriga Accounting can help you organize and prepare the required supporting documents, such as the auditor’s consent, board resolutions, and other relevant paperwork that needs to be submitted along with Form ADT-1.
Timely Submission: Auriga Accounting can help you meet the strict deadlines associated with Form ADT-1 filings, ensuring that the form is submitted on time to the RoC. This is crucial to avoid penalties and non-compliance issues.
Review and Verification: Auriga Accounting typically review the information provided for accuracy and completeness before submission. This review helps minimize the risk of errors and ensures that the filing is in accordance with the law.
Auditor Eligibility: Auriga Accounting can verify the eligibility and qualifications of the appointed auditor to ensure that they meet the requirements specified in the Companies Act.
Filing Fees: Auriga Accounting may facilitate the payment of the required filing fees and ensure that the fees are correctly accounted for in the filing process.
Record Keeping: Auriga Accounting may offer record-keeping services, ensuring that you have a documented history of all your company’s Form ADT-1 filings.
Communication with Authorities: Auriga Accounting can act as an intermediary between your company and the RoC, handling communication and inquiries related to the filing.
Updates and Notifications: Auriga Accounting may also provide updates on changes in compliance regulations and requirements related to Form ADT-1 to keep your company informed.