Applicability of ADT-1 for the appointment of First Auditor.

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Whether filing of ADT-1  is compulsory in the case of appointment of First Auditor for the newly incorporated company.

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MCA E-filing 10 months 1 Answer 283 views 0

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    The third proviso to Section 139 (1) dealing with the Appointment of Auditors requires the company to file a notice with the Registrar within 15 days of the General Meeting in which the appointment is made. Rule 4(2) of the Companies (Audit and Auditor) Rules, 2014 requires the notice to be in form ADT-1.However, Section 139 (6) dealing with appointment of the first auditor by the Board of Directors does not have such an explicit requirement.

    However, while filing Form AOC-4 for the 1st Financial Year of the new company, the SRN of ADT-1 is a mandatory field which should be filled. However, the SRN is not verified, as even a dummy SRN like -Z99999999 ensures that the “check form” filter is cleared. Please note that MCA keeps updating the forms on its portal and the pre-scrutiny requirements may change with time.

    To avoid any future potential non-compliances, it may be prudent to file the form ADT-1 for the first auditor within 15 days of the Board Meeting in which such auditor is appointed

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