All about ADT 1, Intimation of Appointment of Auditor

ADT 1 - Intimation of Auditor to ROC

As per the Companies Act, 2013, books of accounts of every company are required to be audited. Considering transparency, the Registrar of Company (“RoC”) should have all necessary information related to the auditor such as the appointment of an auditor, the resignation of the auditor, etc in form of ADT-1.

Accordingly, Section 139 and 140 of the Companies Act, 1956 provides that company is required to appoint its auditor at Annual General Meeting (“AGM”) who shall hold the office till the conclusion of sixth AGM and thereafter till the conclusion of every sixth AGM.

For the purpose of such appointment, company is required to obtain prior written consent of auditor. In addition to such consent, a certificate is also required from auditor before its appointment that his appointment, if made, shall be in accordance with provisions given under Companies act, 2013.

Further, as per Rule 4(2) of the Companies (Audit and Auditors) Rule, 2014, after appointment, company shall intimate auditor about his appointment and shall also file an intimation about such appointment to the Registrar of Company (“RoC”).

Intimation to RoC should be filed within 15 days of the meeting in which such appointment is made. Intimation to RoC shall be given in e-Form ADT-1.

This article contains detailed information about ADT 1 in FAQs form as follows:

1. What is e-Form ADT-1?

ADT-1 is an intimation form required to be filed for intimating RoC about appointment of auditor of the company.

2. Who is required to file ADT-1 E form?

Companies Act requires every company to file ADT-1 at the time of appointment of auditor. Further, responsibility to file ADT-1 lies with the company not with the auditor.

3. Should a Private Limited Company also file ADT-1 form?

ADT-1 should be filed by every company whether public limited or private limited or Listed company or unlisted company.

4. What is the due date to file this form?

ADT-1 form is required to be file within 15 days from the date of AGM in which appointment of auditor is made,i.e., date of appointment of auditor, e.g., if date of AGM in which auditor is appointed is 30th September, 2018 then ADT-1 should be filed on or before 15th October, 2018.

However, such time limit is of 30 days in case of IFSC (“International Financial Services Centres”)

5. Whether filing of ADT-1 is mandatory in case of appointment of first auditor?

As per Section 139(6) of Companies Act, 2013, first auditor of the company should be appointed by Board of Directors within 30 days from date of incorporation.

If board fails to make such appointment then auditor shall be appointed through Extra Ordinary General Meeting (“EGM”) within 90 days.

As per Companies Act, 2013, company is not required to file ADT-1 with RoC for appointment of first auditor through Board of Directors or EGM as provisions of Rule 4(2) applies for Section 139(1) only. However, it is a good practice to file ADT-1 in this case also. So filling of ADT 1 for first auditor is not mandatory.

ADT-1 also provides option of filing in case of appointment of first auditor through Board or Members.

6. Is filing of ADT-1 applicable in case of appointment of auditor arising through casual vacancy?

As per Section 139(8) of Companies Act, 2013, in case of casual vacancy, manner of appointment of auditor is as follows:

a. If casual vacancy arises due to resignation of existing auditor: Board of director shall make appointment of new auditor within 30 days. Further, such appointment shall be approved by members through general meeting within next 3 months.

b. In other cases: Board of director shall make appointment of new auditor within 30 days.

As per legal provision, ADT-1 is not required to be filed in such case. However, it is recommended to file ADT-1.

7. Can ADT 1 be revised if incorrect particulars are furnished therein?

If incorrect particulars have filed in ADT-1, then company may file ADT-1 again with correct particulars.

8. What is legal fee for filing ADT 1 form?

Amount of legal fee to be paid alongwith ADT-1 is based on share capital. Following is fee structure based on share capital:

Share capital Fee Applicable
Less than INR 1,00,000 INR 200
1,00,000 to 4,99,999 INR 300
5,00,000 to 24,99,999 INR 400
25,00,000 to 99,99,999 INR 500
I,00,00,000 and above INR 600

*In case of company without share capital, fee applicable is INR 200.

9. What are penalties for late filling of ADT 1 or not filling within stipulated time?

Delay in filing of ADT-1 attracts additional fee. Amount of additional fee depends upon number of days delay. Following is the amount of additional fee applicable:

Period of delay Additional Fee
Up to 30 days 2 times of normal fees
More than 30 days and up to 60 days 4 times of normal fees
More than 60 days and up to 90 days 6 times of normal fees
More than 90 days and up to 180 days 10 times of normal fees
More than 180 days 12 times of normal fees

10. What all documents are required to attach while filing form ADT-1?

While filing ADT-1, it is mandatory to attach following documents:

  1. Copy of consent given by auditor.
  2. Copy of resolution passed by the company related to appointment of auditor.

However, company may attach following documents at its discretion:

  1. Copy of intimation letter sent to auditor intimating about his appointment.

11. In case of Limited Liability Partnership Firm, should ADT-1 be filed at the time of appointment of auditor?

ADT-1 is applicable on companies not on limited liabilities companies (LLP). Further, Limited Liability Partnership Act also doesn’t require filing of any form informing about appointment of auditor. Therefore, ADT 1 for LLP is not required.

Read more aboutCompliance for companies registered under ROC

Read more aboutMandatory information in DPT 3 to be furnished by Companies

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DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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