Form ADT -1
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The Annual General Meeting (AGM) nomination of the Auditor is disclosed to the Registrar of Companies (ROC) in Form ADT-1 in accordance with Section 139 of the 2013 Companies Act.
Every company's board of directors must elect an auditor at its first annual general meeting. That person or company will serve as the company's auditor from the end of that meeting through its sixth annual general meeting.
As per section 139 of the Companies Act, 2013, an auditor must be appointed for a minimum of five years, and the business is required to submit Form ADT-1 to the Registrar of Companies for each appointment.
When ought MCA to be submitted on Form ADT-1?
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Within fifteen days after the meeting at which the auditor is appointed, the company must notify the concerned auditor of his or her appointment and submit a notice of such appointment with the Registrar, as per Section 139 of the Companies Act, 2013.
To put it another way, Form ADT-1 for newly created companies must be filed within 15 days of their first general meeting, and for IFSC businesses, it must be filed within 30 days. Existing companies must submit Form ADT-1 in the required format on the MCA portal within 15 days of the AGM at which the auditor was initially appointed or reappointed, as applicable.
In accordance with Section 96 of the Companies Act of 2013, the first annual general meeting (AGM) must be convened no later than nine months after the end of the company's first financial year, or, in any other circumstance, no later than six months after the end of the financial year.
Therefore, the AGM should take place within 6 months, or on September 30, if an existing business concludes its fiscal year on March 31. Form ADT-1 should be filed within 15 days of the AGM. If the auditor was appointed at the AGM on September 30, then Form ADT-1 must be completed by October 15th.
Documents needed to complete Form ADT-1
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Include a copy of the auditor's written consent,
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A copy of the board or company's resolution if the appointment is not "auditor appointed by the tribunal" or "others," a copy of the tribunal's order if the appointment is "auditor appointed by the tribunal,"
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A copy of the company's notification of the appointment, and
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A copy of the letter of appointment from C&AG.
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A statement from the auditor stating that he is not barred from serving as an auditor under Section 141 and any optional attachments, if any.
Important details about the Form ADT-1
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The ADT-1 format is available for download from www.Mca.Gov.
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ADT-1 Is Auto-Approved In An E-Form.
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Every AGM in which the auditor has been appointed requires the submission of Form ADT-1.
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Re-appointment of the auditor is part of the appointment.
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When a joint auditor is appointed or when a temporary replacement is named, Form ADT-1 must be completed.
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An auditor may be reappointed for a total of 10 years, or not less than two terms.
The cost of submitting Form ADT-1
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If the company has a share capital, there is a filing fee for electronic forms or papers.
NOMINAL SHARE CAPITAL - FEE APPLICABLE
Less than 1,00,000 - Rs. 200 per document
1,00,000 to 4,99 ,999 - Rs. 300 per document
5,00,000 to 24,99,999 - Rs. 400 per document
25,00,000 to 99,99,999 - Rs. 500 per document
1,00,00,000 or more - Rs. 600 per document
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If a corporation doesn't have share capital, there is a fee for submitting electronic forms or papers.
Fee of Rs. 200 per document is payable.
Penalty on late filing of FORM ADT-1
PERIOD OF DELAY ALL FORMS
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
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Only after 30 days have passed since the date of appointment will the additional cost be applicable in the event of an IFSC company.
Conclusion
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A firm shall employ an auditor to protect the interests of shareholders who is not barred from doing so under Section 141 of the Companies Act, 2013. Within 15 days of the board meeting, the registrar of companies (ROC) should be notified via Form ADT-1 of any appointments or reappointments of an individual auditor or auditor's firm.
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