Appointment of Auditor
Form ADT-1 Filing Made Simple & Compliant
Ensure timely and accurate filing of Form ADT-1 with Tax Pal Solutions. We provide end-to-end support for notifying the ROC about auditor appointments, keeping your company MCA-compliant and penalty-free.
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What is Form ADT-1?
Form ADT-1 is an electronic form submitted to the Registrar of Companies (ROC) to notify the appointment of a statutory auditor. It identifies the auditor responsible for the company’s financial statements and ensures regulatory compliance under the Companies Act, 2013.
Previously, auditors filed this under Form 23B (Companies Act, 1956). Now, companies themselves are accountable.
Details Required in Form ADT-1
| Detail | Description |
|---|---|
| Category of Auditor | Individual or Firm |
| PAN | Auditor’s Income Tax Permanent Account Number |
| Membership/Firm Registration No. | Validates auditor credentials via ICAI |
| Address & Email | Official communication details |
| Period of Appointment | Start and end financial years for audit |
| Date of Resolution | Date of Board/AGM meeting approving the auditor |
Laws Governing ADT-1
- Section 139(1), Companies Act 2013: Rules for first and subsequent auditors, auditor rotation, and casual vacancies.
- Companies (Audit and Auditors) Rules, 2014: Mandatory use of Form ADT-1 and required content for auditor’s consent and certificate.
Who Appoints the Auditor?
First Auditor:
- Appointed by Board of Directors within 30 days of incorporation.
- If Board fails, members appoint within 60 days at an EGM.
- Auditor’s consent & certificate required.
- Form ADT-1 must be filed within 15 days of resolution.
Subsequent Auditors:
- Appointed or reappointed by shareholders during AGM.
- Serve a maximum 5-year term.
- Auditor rotation rules apply to certain companies (listed, large private/public companies, public borrowing above Rs. 50 crore).
Documents Required for ADT-1 Filing
| Document | Purpose |
|---|---|
| Auditor Consent Letter | Confirms auditor’s willingness |
| Eligibility Certificate (Sec 141) | Confirms auditor meets legal criteria |
| Certified Board/AGM Resolution | Approves auditor appointment |
| Formal Appointment Letter | Optional, clarifies terms & duration |
| Digital Signatures | Mandatory for filing by Director & CA/CS/CMA |
Step-by-Step Process for Filing Form ADT-1
- Convene a Board Meeting/AGM: Pass resolution for auditor appointment.
- Obtain Auditor Documents: Collect consent letter and eligibility certificate.
- Download Form ADT-1: Access latest MCA e-form.
- Fill Form Accurately: Include CIN, auditor details, tenure, and attachments.
- Attach Documents: Resolution, consent, and eligibility certificate.
- Digital Sign & Certify: Director signs; may require CA/CS/CMA certification.
- File & Pay Fees: Submit on MCA portal and pay statutory fees.
- Receive Acknowledgment: SRN generated as proof of filing.
Form ADT-1 Filing Fees
| Nominal Share Capital | Fee (INR) |
|---|---|
| Less than Rs. 1,00,000 | 200 |
| Rs. 1,00,000 – 4,99,999 | 300 |
| Rs. 5,00,000 – 24,99,999 | 400 |
| Rs. 25,00,000 – 99,99,999 | 500 |
| Rs. 1,00,00,000 or more | 600 |
Timeline, Due Dates & Validity
| Scenario | Filing Deadline | Validity |
|---|---|---|
| First Auditor | Within 15 days of Board Meeting | Until conclusion of first AGM |
| Subsequent Auditor | Within 15 days of AGM | Full 5-year term (or until next appointment) |
Consequences of Non-Filing
- Statutory Violations: Penalty under Section 147.
- Late Filing Fees: Escalating fees based on delay (2× to 12× of normal fee).
- Additional Legal Penalties: Fines up to Rs. 10,000 for company; Rs. 1,000/day for officers.
- Non-Compliant Tag: Visible on MCA portal, affects credit, tenders, and reputation.
- Future Filing Issues: Auditor details not updated, leading to errors in other forms.
- Regulatory Scrutiny: Possible ROC notices or inspections.
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