When is ADT-1 Filing Required?

1. First Auditor Appointment (Section 139(6)): 
             o The first auditor of a company (other than a government company) must be appointed by the Board of Directors within 30 days of incorporation.
             o File ADT-1 within 15 days of the board meeting.
2. Subsequent Auditor Appointment/Reappointment (Section 139(1)): 
             o Auditors are appointed for a 5-year term at the Annual General Meeting (AGM).
             o File ADT-1 within 15 days of the AGM where the appointment/reappointment is approved.
             o For government companies, the Comptroller and Auditor General (CAG) appoints the auditor, and ADT-1 is filed within 15 days of CAG’s appointment.
3. Casual Vacancy (Section 139(8)): 
             o If an auditor resigns, dies, or becomes incapable, the vacancy is filled by the Board (or CAG for government companies) within 30 days.
             o File ADT-1 within 15 days of the board meeting or CAG approval.
4. Rotation of Auditors (Section 139(2)): 
             o For listed companies and certain large unlisted companies (as defined in Rule 4), auditors must rotate after:
                     o Individual auditor: 1 term of 5 years.
                     o Audit firm: 2 terms of 5 years each (total 10 years).
             o File ADT-1 for the new auditor within 15 days of the AGM.

Due Date

Always within 15 days from the date of the board meeting (for first auditor/casual vacancy) or AGM (for subsequent appointments/reappointments).

Who Needs to File ADT-1?

    • All Companies (private, public, listed, unlisted, government, or non-government) must file ADT-1 for auditor appointments, except:  
            o Exemptions: Small companies, one-person companies (OPCs), or dormant companies may be exempt from appointing auditors under Section 138(1) if they meet specific criteria (e.g., turnover < ₹2 crore, paid-up capital < ₹1 crore).
     • The filing is the company’s responsibility, not the auditor’s, and is signed by a director with an active DIN.

Documents Required for ADT-1 Filing

The following documents must be attached to Form ADT-1:

1. Board Resolution:  
             o Copy of the board resolution approving the first auditor or casual vacancy appointment.
2. Shareholders’ Resolution (for AGM appointments): 
             o Copy of the ordinary resolution passed at the AGM for auditor appointment/reappointment.
3. Auditor’s Consent and Eligibility Certificate: 
             o Written consent from the auditor (individual or firm) to act as the statutory auditor.
             o Certificate confirming eligibility under Section 141 (e.g., not disqualified due to financial interest, indebtedness, or holding a relative’s shares).
4. Intimation Letter: 
             o Copy of the company’s intimation letter to the auditor regarding their appointment.
5. Resignation Letter (for Casual Vacancy): 
             o If the previous auditor resigned, include their resignation letter and Form ADT-3 (filed by the resigning auditor).
6. CAG Letter (for Government Companies): 
             o Letter from the Comptroller and Auditor General appointing the auditor.
7. Digital Signature Certificate (DSC): 
             o DSC of the signing director (with an active DIN) and a practicing CA/CS/CMA for certification.
8. Other Documents (if applicable): 
             o For foreign auditors or firms: Notarized/apostilled eligibility certificates.
             o Proof of auditor’s membership with the Institute of Chartered Accountants of India (ICAI).

Step-by-Step Procedure for ADT-1 Filing

1. Verify Director’s DIN Status:  
             o Ensure the signing director’s DIN is active. Check on the MCA portal (www.mca.gov.in > MCA Services > Director Services > View Director Master Data).
             o If deactivated, reactivate by filing DIR-3 KYC e-Form with a ₹5,000 penalty (as detailed in my DIN reactivation response).
2. Hold Board Meeting or AGM: 
             o First Auditor/Casual Vacancy: Convene a board meeting to appoint the auditor and pass a resolution.
             o Subsequent Appointment/Reappointment: Hold an AGM to pass an ordinary resolution for the auditor’s appointment/reappointment.
             o For government companies, obtain CAG approval.
3. Obtain Auditor’s Consent: 
             o Collect the auditor’s written consent and eligibility certificate under Section 141.
4. Download Form ADT-1: 
             o Visit www.mca.gov.in > MCA Services > Company Forms Download > Download “Form ADT-1.”
5. Fill Form ADT-1: 
             o Details to Include: 
                       o Company’s Corporate Identification Number (CIN).
                       o Name, address, and PAN of the company.
                       o Auditor details: Name, ICAI membership number (for individuals), firm registration number (for firms), PAN, address.
                       o Appointment details: Date of appointment, tenure (e.g., 5 years), type (first/subsequent/casual vacancy).
                       o For casual vacancy: Details of the previous auditor and reason for vacancy.
                       o Date of board meeting/AGM or CAG approval.
             o Ensure details match the resolutions and consent letter.
6. Attach Documents: 
             o Upload the required documents (listed above) in PDF format.
             o Ensure documents are self-attested and certified by a CA/CS/CMA.
7. Digital Signatures: 
             o Affix the DSC of the signing director (with active DIN).
             o Get certification from a practicing CA/CS/CMA (they affix their DSC and membership number).
8. Approval and Confirmation: 
             o Form ADT-1 undergoes Straight Through Processing (STP) and is typically approved within 1–3 days if all details are correct.
             o Check status using the SRN on the MCA portal under “Track SRN/Transaction Status.”
             o Upon approval, the MCA updates the company’s auditor details, and a confirmation email is sent to the registered email.

Consequences of Non-Filing:

    • Auditor’s appointment is invalid, leading to non-compliance with Section 139. 
    • Penalties for the company and officers in default (up to ₹50,000 or more under Section 147).
    • Potential issues during RoC inspections or audits.