CA not filling ADT 1 form

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Himanshu Ghangas (Querist)
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20 July 2022 In the first year, CA (1) appointed him self as the auditor of company XYZ. In the second year the XYZ hired another CA (2). Second year's filing done by CA (2) without official resignation of CA (1) . Soon it came to notice that the auditor has not been apointed for this year and CA (1) is asked to officially resign. Now CA (1) filed ADT 3 and resigned, but gave resignation in the current date.

Now CA (2) is not filling the ADT 1 even after taking the penalty of ₹4800 for the delayed appointment of auditor.

What could be the potential reason for not filling the form ? And what actions can be taken against CA (2) by the company XYZ ?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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06 July 2024 It seems there might be a misunderstanding or miscommunication regarding the filing of ADT-1 (Appointment of Auditor) by CA (2) for company XYZ. Here are some potential reasons why CA (2) might not have filed the ADT-1 despite taking the penalty for delayed appointment of auditor:

1. **Administrative Oversight**: Sometimes, administrative delays or oversight can occur, where the CA or the company's management may have missed the deadline or not completed the filing process on time.

2. **Technical Issues**: There could be technical issues with the MCA portal or other related systems that prevent the timely filing of forms.

3. **Communication Gap**: There might be a lack of communication between CA (2) and company XYZ regarding the status of the ADT-1 filing.

4. **Internal Procedures**: It's possible that CA (2) is waiting for some internal approvals or documents from company XYZ before proceeding with the filing.

Actions that can be taken by company XYZ:

1. **Follow-Up**: Company XYZ should follow up with CA (2) immediately to inquire about the status of the ADT-1 filing and request that it be completed promptly.

2. **Document the Situation**: Ensure that all communications regarding the ADT-1 filing and any penalties paid are properly documented for future reference.

3. **Escalate if Necessary**: If CA (2) does not respond or rectify the situation promptly, company XYZ may need to escalate the matter to higher authorities within the CA firm or consider legal recourse if deemed necessary.

4. **Seek Legal Advice**: If there is a significant delay or if there are legal implications due to non-compliance, company XYZ should seek legal advice to understand their rights and options.

It's crucial for company XYZ to ensure compliance with all statutory requirements regarding the appointment and filing of auditor forms to avoid any penalties or legal issues.

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