In response to the COVID-19 situation, the government has launched the Companies Fresh Start Scheme (CFSS) 2020s to complete their filing requirements and payment of normal fees without incurring penalties. The forms that are eligible for filing under CFSS 2020 include Form ADT 1 and PAS 3, annual return ( Form MGT 7), financial statement ( Form AOC 4), and MGT 14 among others.
The Registrar of Companies must be notified when a company appoints an auditor to check their account books as per law. In accordance with Section 139 (1) of the New Companies Act, 2013, every company is required to register the auditor’s name and other details with the ROC via Form ADT-1. Under this Section, all information regarding the appointment must be communicated to the ROC as soon as possible, and penalties will be imposed if this is not done.
Let’s take a look at everything you need to know.
DUE DATE: As per the new Companies Act 2013, details regarding the auditor and his/her appointment must be notified to the ROC, at least within 15 days of the appointment. Such notice must be filed through Form ADT 1 which may be found and filled through the MCA portal. For instance, if the AGM in which the auditor was formally appointed occurred on the 30th of September, Form ADT-1 must be filed at least by 14th October.
What is Form ADT-1?
Form ADT- 1 works basically as an intimation to the ROC by every company which appoints an auditor after holding their Annual General Meeting (AGM). This form must be filed every year with the ROC after the conclusion of the AGM, and appointment of the auditor.
Documents Attached with the Form ADT-1
- Copy of the Company’s Board Resolution
- Written letter of consent from the Auditor
- Certificate from Auditor stating their authenticity u/s 141
- Copy of intimation given to the auditor by the company
Government Filing Fees
If the nominal share capital
- Is less than 1 lakh – ₹ 200
- Falls between 1 lakh and 5 lakhs – ₹ 300
- Is between 5 lakhs and 25 lakhs – ₹ 400
- Falls between 25 lakhs and 1 crore – ₹ 500
- And falls exceed 1 crore – ₹ 600
Penalty on Delayed Filing
If the delay is
- Up to 30 days, then the penalty will be twice the normal fees
- Between 30 and 60 days, then the penalty will be four times the normal fees
- From 60 to 90 days, then the penalty will be six times the normal fees
- Between 90 and 180 days, then the penalty will be ten times the normal fees
- Exceeds 180 days, then the penalty will be twelve times the normal fees
Important Points for ADT-1 Form
- All Private/Listed/Unlisted/Public/One Person and any other Company must file Form ADT-1
- The company itself is responsible for filing the form and this is not the responsibility of the auditor
- Even if the auditor is appointed casually, Form ADT-1 must be filed.
- The form may be filed even for the appointment for the company’s first auditor if deemed necessary.
- Form ADT-1 may be filed electronically online via the Ministry of Corporate Affairs website
- The e-form uploaded this way will be auto-approved
- If the form is successfully registered, then the authorities will send an acknowledgement email to the registered email ID of the company
- Form ADT-1 has replaced the old Form 23B which the auditor was expected to file on receiving the appointment letter from a company. Form 23B was to be filed at least within 30 days after receiving the appointment letter. However when the new Companies Act 2013, was introduced, this procedure was scrapped, and the new Form ADT-1 was introduced.
- Also while the company files its AOC-4, they must mention the SRN number of ADT-1 form.
The following details of the Auditor must be supplied through the form:
- Auditor Category
- PAN of auditor
- Membership Number of auditor
- Auditor FRN
- Address/ Email ID of Auditor
- Period of appointment
- Date of Appointment of the Auditor
- Date of AGM
- Tenure of the last auditor
- Additional details regarding the vacancy
- SRN from ADTR-3
- FRN of the previous auditor
- Reason and date of a casual vacancy
As a result, we hope that our responses have adequately addressed your concern; if you need any additional assistance, please do not hesitate to contact us; we will be delighted to provide you with any assistance you require.
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