Anything & Everything About ADT – 1
ADT -1 is used by companies in India to notify the Registrar of Companies (RoC) about the appointment of an auditor. The filing of this form is a mandatory compliance requirement under the Companies Act, 2013.
A. Importance of Form ADT - 1
Legal Compliance: Filing ADT-1 is a statutory requirement under Section 139 of the Companies Act, 2013. It ensures that the company complies with legal provisions related to the appointment of auditors.
Transparency and Accountability: The appointment of auditors and the filing of ADT-1 enhance the transparency and accountability of the company’s financial reporting. It ensures that an independent and qualified auditor is overseeing the company’s financial statements.
Record Keeping: It helps maintain accurate records with the RoC regarding the auditors appointed by the company. This information is essential for regulatory oversight and for stakeholders who may need to verify the auditors of the company.
Avoiding Penalties: Non-filing or delayed filing of ADT-1 can result in penalties and legal consequences for the company. Timely submission ensures that the company avoids such penalties.
B. Details Required for Filing ADT - 1
When filing ADT-1, a company typically needs to provide the following information:
- CIN (Corporate Identification Number): The unique identification number of the company.
- Name and Address of the Company: Basic details about the company.
- Details of the Auditor: Name, address, membership number, and other relevant details of the auditor or audit firm being appointed.
- Period of Appointment: The term for which the auditor is appointed, generally for five years.
- Date of Appointment: The effective date from which the auditor is appointed.
- Resolution Details: Information regarding the resolution passed for the appointment of the auditor, including the date of the meeting.
C. Process of Filing ADT - 1
- Board Meeting: The Board of Directors must convene a meeting to appoint an auditor, subject to the approval of the shareholders.
- Shareholders’ Approval: The appointment of the auditor must be approved by the shareholders in the Annual General Meeting (AGM).
- Filing ADT-1: After obtaining the shareholders’ approval, the company must file Form ADT-1 with the RoC within 15 days of the AGM.
- Payment of Fees: The prescribed fees must be paid during the submission of ADT-1.
D. Penalties for Non - Compliance
Failing to file ADT-1 within the stipulated time can result in penalties for the company and its officers. The Companies Act, 2013 outlines specific fines and punishments for non-compliance, emphasizing the importance of timely and accurate filing.
In summary, Form ADT-1 is a critical compliance requirement for companies in India, ensuring proper appointment and reporting of auditors to maintain transparency, accountability, and legal adherence.
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