What is ADT-1?

Once the AGM wraps up, the company needs to file Form ADT-1 with the registrar of companies to let them know who is been appointed as auditor. Section 139 of the Companies Act 2013 makes this mandatory. Every year, right after the AGM where the auditor gets appointed, you have to file this form.

Important aspect for submitting Form ADT-1

·       The duty of submitting Form ADT-1 is with the company, not with the auditor.

·       It is mandatory to submit Form ADT-1 for all kinds of companies, whether it is a listed company, private company, public company, or unlisted company.

·       Even if the auditor is appointed due to a casual vacancy in a company, it is mandatory to submit Form ADT-1.

·       Although it is not mandatory to submit Form ADT-1 for the first appointment of auditors, it is always better to submit it.

Important things about Form ADT-1.

This form has to be filed by every company, no matter whether you are listed, unlisted, public, private, or anything else. This task is always the company’s responsibility and never the auditors.

You have to file Form ADT-1 even if you are just filling a casual vacancy for an auditor.

Many people believe that you do not need to file Form ADT-1 when you are appointing your first auditor.

This is probably because Rule 4(2) of the Companies Rules, 2014, only refers to Section 139(1), which deals with the appointment of auditors, but not Section 139(6), which deals with the first auditor.

Advantages of ADT-1 filling

1. Staying on the Right Side of the Law

Filing ADT-1 is how a company notifies the ROC of its new auditor. Do not skip this step, and you’ll be begging for trouble and extra charges. File it on time, and you are good to go.

2. Dodging Penalties

If you don’t file ADT-1 within 15 days of appointing an auditor, be prepared for some serious extra charges. Just file it and avoid all the trouble and expenses.

3. Building Trust

When the company changes its auditor information with the MCA, it is all out in the open. Shareholders, investors, and banks will know you are following the rules, which is great for building trust.

4. Smoother Audits

When the auditor is officially on board, statutory audits are a breeze. Financial statements are prepared and submitted without any legal issues.

5. Better Governance

Following proper procedure for appointing an auditor ensures that controls are tighter and everyone is accountable for the money.

6. Easier Bank Loans

Banks and lenders will check the MCA to verify your auditor. If you have filed ADT-1, it makes loan approvals and compliance a breeze.

7. Legal Protection

If things ever get messy disputes, investigations, you name it the ADT-1 filing is your proof that everything’s above board with the auditor, cutting down legal risks.

Types of ADT-1 filling

1. Appointment of First Auditor 

The Board has 30 days from the date the company is incorporated to meet and pick the first auditor. According to the new 2025 rules, they need to file Form ADT-1 with the Registrar to make this official.

2. Appointment of Subsequent Auditor

After the Annual General Meeting, the company gets 15 days to file when appointing or reappointing an auditor for a fresh term, usually five years.

3. Filling a Casual Vacancy 

If an auditor steps down, is disqualified, passes away, or leaves for any other reason before their term ends, the company must let the Registrar know about the new auditor brought in to fill the gap.

4. Appointment of Auditor in Government Company 

In government companies, the Comptroller and Auditor-General of India handles the auditor appointment.

Step1. Take the Auditors Consent & Check Eligibility:

Request a written consent letter from the auditor. Ensure you obtain a certificate from them, stating that they are not disqualified under Section 141 of the Companies Act, 2013.

Step 2. Pass a Board Resolution:

Approve the appointment of the auditor at the Board Meeting or AGM.

Step 3. Prepare the Documents:

Gather all the documents you need:

- The Board or AGM resolution,

- The auditors consent letter,

- The certificate stating the auditors eligibility.

Step 4. Log in to the MCA Portal:

Log in to the MCA portal using your company login credentials.

Step 5. Fill Out Form ADT-1:

Select “Form ADT-1” and enter all the details:

- Company CIN and name,

- Auditor’s name, PAN, firm registration number, and address,

- Type of appointment,

- Date of appointment.

Step 6. Attach Documents and Sign:

Upload all the documents you have prepared. Sign the form using the Digital Signature Certificate (DSC) of both a director and the auditor.

Step 7. Submit & Pay Fees:

Submit the form and pay the fee according to your company’s nominal share capital.

Step 8. Get Your SRN:

Once you submit, the system will provide you with a Service Request Number (SRN). This is your confirmation that everything has been processed.

1. Appointment Documents

·       A true copy of the board resolution for the appointment of the first auditor or a casual vacancy.

·       A true copy of the ordinary resolution passed at the AGM.

·       The consent letter of the auditor.

·       The eligibility certificate of the auditor under Section 141, stating that he/she is not disqualified.

2. Auditor Details

·       A copy of the PAN card of the auditor.

·       Firm Registration Number (FRN), if it is an audit firm.

·       Membership number, if it is an individual CA.

·       The address and email ID of the auditor.

3. Company Documents

·       Corporate Identification Number (CIN).

·       Digital Signature Certificate (DSC) of the director.

·       Digital signature of the auditor.

Appointing the first auditor for your company and submitting Form ADT-1 is not a tick-box exercise but an important step in ensuring that your company’s finances remain open and transparent. You must be aware of the requirements, the eligible candidates, the deadlines, the process of submitting, the costs involved, and the consequences of missing out on certain details. Address these at the beginning, seek professional assistance if required, and stay updated on any changes to the rules. This will ensure that you do not incur any fines and that everything is running smoothly.