Roc
This query is : Resolved
29 October 2013
What are the consequences if Company has not given appointment intimation to auditors within 7 days of AGM
rsbglr@gmail.com
rsbglr@gmail.com
29 October 2013
Form 23B is to be filed within 30 days from date of intimation given to Auditor . If you have not provided intimation to Auditor then how auditor can file form 23B. Then Company have to submit form 23B with Penal fee prescribed by MCA.
31 October 2013
thank for your reply Bansal sir
and can I know that legal proceeds (other than paying fee 10 times of original fee to MCA)
and can I know that legal proceeds (other than paying fee 10 times of original fee to MCA)
22 July 2025
Here’s a detailed explanation regarding the consequences if a company fails to intimate the auditor’s appointment within the prescribed time:
Intimation of Auditor Appointment to ROC — Key Points
1. Requirement to Intimate Auditor Appointment
Under Section 139(1) of the Companies Act, 2013, a company must appoint its first auditor within 30 days of incorporation and subsequently appoint auditors at the AGM.
After the auditor is appointed, the company must intimate the auditor of their appointment within 7 days of the AGM.
The auditor then has to file Form ADT-1 (intimation of appointment) with the Registrar of Companies (ROC) within 15 days of the appointment.
2. Consequences of Not Intimating Auditor within 7 Days
If the company fails to inform the auditor within 7 days, the auditor may not be aware of the appointment in time to file Form ADT-1.
If the auditor does not file Form ADT-1 within 15 days, the company must file Form ADT-1 itself.
Delay in filing Form ADT-1 attracts a late fee, which is ₹5,000 for the first day and ₹500 per day thereafter (subject to maximum limits).
MCA portal requires the company to pay penal fees (10 times the original fee) for late filing of Form ADT-1.
3. Other Legal Consequences
Non-compliance with Section 139 and related provisions can attract penalties on the company and officers in default:
Fine which may extend to ₹1,00,000 and a further fine of ₹5,000 per day for continuing default.
Auditor may also refuse to continue if not properly appointed and intimated.
It may also affect the validity of the auditor’s reports and audit process.
4. How to Remedy the Situation
File Form ADT-1 immediately with applicable late fees.
Intimate the auditor formally as soon as possible.
Maintain proper communication and compliance for future appointments.
Intimation of Auditor Appointment to ROC — Key Points
1. Requirement to Intimate Auditor Appointment
Under Section 139(1) of the Companies Act, 2013, a company must appoint its first auditor within 30 days of incorporation and subsequently appoint auditors at the AGM.
After the auditor is appointed, the company must intimate the auditor of their appointment within 7 days of the AGM.
The auditor then has to file Form ADT-1 (intimation of appointment) with the Registrar of Companies (ROC) within 15 days of the appointment.
2. Consequences of Not Intimating Auditor within 7 Days
If the company fails to inform the auditor within 7 days, the auditor may not be aware of the appointment in time to file Form ADT-1.
If the auditor does not file Form ADT-1 within 15 days, the company must file Form ADT-1 itself.
Delay in filing Form ADT-1 attracts a late fee, which is ₹5,000 for the first day and ₹500 per day thereafter (subject to maximum limits).
MCA portal requires the company to pay penal fees (10 times the original fee) for late filing of Form ADT-1.
3. Other Legal Consequences
Non-compliance with Section 139 and related provisions can attract penalties on the company and officers in default:
Fine which may extend to ₹1,00,000 and a further fine of ₹5,000 per day for continuing default.
Auditor may also refuse to continue if not properly appointed and intimated.
It may also affect the validity of the auditor’s reports and audit process.
4. How to Remedy the Situation
File Form ADT-1 immediately with applicable late fees.
Intimate the auditor formally as soon as possible.
Maintain proper communication and compliance for future appointments.
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