form ADT-1 for intimating appointment of the first Auditor

[Bakul K. Desai]

Dear friends,

While filling up form ADT-1 for intimating appointment of the first Auditor of a newly incorporated pvt ltd (Jan. 2016), what date (upto which  the first Auditor's appointment is considered)  should be stated against item 4(f) & 4(i) ?

Many thanks & regards,

Bakul

[CS_SrikanthReddyKolli]

Hi

Up to the date on which the first AGM will be conducted. 

[Jayashree Chandrasekaran]

I think Bakul is talking of auditor appointed by the Board....ADT-1 is not required

Thanks

Jayashree

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C.JAYASHREE
PROPRIETOR
S.GANESH&ASSOCIATES
CHENNAI
98840 17120

[Bakul K. Desai]

Hi,

I am talking about 1st auditor being appointed by the Board of a newly incorporated pvt ltd co (Jan.2016).

I tried putting 30.9.2016 and alternatively 31.3.2016, at both places but it is giving a msg that the ending date in clause 4(i) should be equal or lower than that in clause 4(f). I also tried putting 30.9.16 in 4(f) & 31.3.16 in 4(i) but same msg.

I too thought that since 1st Auditor's appointment is under s.139(6) and form ADT-1 is required for auditor appointed u/s. 139(1), form ADT-1 is not required. Since one of friends thought it is better to file, I tried.

So, would appreciate more clarity from friends who have done this.

Thanks & best regards,

Bakul

[shruti bansal]

Hi,

I would like to clarify that your Company is incorporated in Jan, 2016, therefore its FY will end on 31.03.2017 and not 31.03.2016 (Please refer Section 2(41) i.e. definition of financial year).

And because your company is a new company, then i think point 4(i) is not applicable to it as it talks of the previous appointments in the same Company.

Hope it will help.

Thanks & Regards

Shruti Bansal

Contact: 9811530248

On Wednesday, 24 February 2016 13:25:51 UTC+5:30, Bakul K. Desai wrote:

[khushboo agarwal]

Hello,

In the Clause 4(i) you have to put "0" since its a newly incorporated Company so the Auditor Cannot be appointed fro any previous Year.

And in Clause 4(f) the End Period will be 31.03.2016 as auditors are appointed for the Financial Year and not From AGM Date to another AGM Date.

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Regards & Thanks

CS Khushboo Agarwal

[shruti bansal]

Dear Friends,

I would further like to clarify that as per section 2(41), definition of Financial Year says that if a Company is incorporated on or after the 1st day of January of a year, then its financial year will be the period ending on 31st day of March of the following year.

In Bakul's case, the company is incorporated in Jan 2016, therefore its FY will end on 31.03.2017.

And the AGM due date will be 9 months from the end of the FY i.e. 31.12.2017.

Thanks & Regards

Shruti Bansal

Contact: 9811530248

[srikanthreddykolli .]

yes i agree with Ms Shruti bansal

With Regards

Srikanth Reddy Kolli

Company Secretary

+91 9618144661

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[Abhishek Garg]

Hi,

As i completely agree with Ms. Shruti Bansal, but don't you think that this definition is in contravention to the provisions of income tax act.
If a Company incorporated in Jan 2016,
Don't they need to prepare it financials for FY 2015-16.
Don't they need to get their financials audited by a CA for FY 15-16?
Don't they need to file ITR for 2015-16?

According to me, the change is just that they need not to file their documents to MCA.
Is there anything else which is changed?

Even some experts says that the company has to prepare a single 15 Months financial statements (Jan 16 to Mar 17) for ROC filing, because they are useless for income tax purpose.

What is going on?
I think By changing definition in Company Law has even complicated the process.

Please Correct me if am wrong.

Regards,
Abhishek Garg
CIA, B.Com, CA-Final
Delhi
+91-99-119-584-83

[Bakul K. Desai]

Hi,

As per my understanding, the Company (incorporated in Jan.2016) can have the first 'Previous Year' of more than 12 months under Income Tax law, too. Earlier, Income Tax Officer's approval was necessary for such extension. I think now also, it may be required  [Considering s.2(41) of the Companies Act, 2013 defining the 1st Previous Year as the one from Jan.2016 to 31.3.2017 ], the Income Tax Officer may give his permission.

Thus, 1st Previous Year under Cos Act & I. Tax Act & consequently for all purposes can be - should be from Jan.2016 to 31.3.2017.

Friends, request for your views.

Thanks & best regrds,

Bakul

[surender singh]

Dear Bakul,

In your case, you can appoint First Auditor in the first Board meeting & there is no requirement to File ADT-1. Just take the consent letter from the auditor for your records.

[Chandravijay Shah & Co.]

Please read section 2(34) along with section 3 of the Income Tax Act, 1961, both of which read together define Previous Year, according to which, it is Financial Year, i.e., April to March. It also says that in case of a newly set up Business, etc., Previous Year will be from the Date of Commencement of such Business till next 31^st March.

 

In other words, a Previous Year under the said Act can never exceed 12 Months. So, even if the Companies Act, 2013 allows 1^st Financial Year of more than 12 Months in a given situation, it cannot work for the Income Tax purpose. So, we are back to square one. New Company also has to close its 1^st Year on ensuing 31^st March and Upload the Return of Income of that Year. Data so Uploaded cannot be unaudited. So, Audit is also mandatory even of that Financial Year of less than 12 Months.

[Jayashree Chandrasekaran]

Friends,

further to this interesting discussion,I personally feel it is better to close on 31st March 2016,conduct the AGM in 2016 itself so that there is uniformity

Jayashree

[Bakul K. Desai]

Dear Friends,

Since the fncl stat need to be prepared for I Tax Return for FY 2015-16 (the 1st Previous Year of the Company under I Tax Act), Jayashree's suggestion appears to be safe & practical - i.e. to Close the 1st Acctg year on 31.3.16 (from Incorp. dt 9.1.16). This will obviate any need to obtain ITO's approval for extension of Previous year for more than 12 months (9.1.16 to 31.3.17). Also, for I Tax purpose, 1st yr fncl stat have to be audited as Audit Report needs to be attached to I Tax Return.

Secondly, suppose one may consider that havg 1st acct yr as 9.1.16 to 31.3.16 may not be consistent with defn of Fncl year in s.2(41) of Cos Act, 2013. But since there seems to be no consequential penal provisions, it may be better to close the 1st FY on 31.3.16.

Would appreciate your views.

Thanks & warm regards,

Bakul

9820345543

[VIMAL SHARMA Compliance]

Whether we are supposed to file Form-ADT-1 for appointment of First Auditor?

Thanks & Regards,

Vimal Sharma

Move out of your comfort zone, You can only grow, if you are willing to feel awkward and uncomfortable, when you try something New..

[Bakul K. Desai]

Dear friends,

There is a view that notice to the Registrar needs to be given about appointment of auditor u/s. 139(1).  S.139(6) which states about appointment of 1st auditor, does not refer to need for giving any such notice.

Would appreciate your views.

Warm regards,

Bakul

9820345543

[shiva...@gmail.com]

The appointment of first Auditor is governed through Section 139(6) which starts with a Non-obstante clause [notwithstanding anything contained in sub section (1)] and it is sub section(1) which requires obtaining consent and certificate from auditor and filling of Form ADT-1 with ROC.

Non-obstante clause is used to avoid the effect of all contrary provisions. Since Section 139(6) dose not speaks anything contrary to Section 139(1) as far as obtaining of consent, certificate and filing of Form is concerned, therefore it can be interpreted that Form ADT-1 should be filed with ROC for first Auditor also.

Shivangi Singh

Qualified CS, B.Com (H)

+91-844-7566-978 

[Bakul K. Desai]

Dear friends,

In that case the 1st FY will end on 31.3.16 (for P Ltd Co incorporated on 9.1.16) & 1st AGM to be held by 31.12.16.

In such a case, whether the 1st Auditor's appointment will end on 31.3.16 or  31.12.16 (for the puprose of writing in Clause 4(f) & 4(i) of the form ADT-1?

Would appreciate your views.

Warm regards,

Bakul

9820345543

[Bakul K. Desai]

Dear friends,

I could check & Pre-scrutinise the form ADT-1 by filling up info as follows:

Clause 4(f) - Period of appointment of the 1st Auditor -  9.1.2016 to 31.3.2016 and no. of Financial years for which auditor is appointed - 1.

Clause 4(i)  - no. of Financial years for which auditor is appointed - 0 ( as it talks about - " Specify the tenure of previous appointment(s) of the auditor or auditor's firm or its member in the same company" ). Hence, it is 0. Hence, no need to write any period of appointment in clause 4(i)