25 September 2014
Hi the appointment of auditors for a term of five years starts from this year itself or we hv the grace period of three years for small companies also(where rotation is not required).Further the form ADT-1 is required to be filed every year with ROC after ratification of auditors in AGM or it is required to be filed only once in five yrs i.e at the time of appointment for five years. ok we hv to appoint auditors for five yrs in small and other non prescribed commencing from this yr only and file ADT-1 once in six years. But the form ADT-1 is not available for e filing we hv to attach it in GNL-2, Right? Further the in ADT-1 there is mention of the period for which appointment is being made and no attachment has been prescribed. Is it not necessary to attach any letter given to auditors or intimation reced from auditors with the form?
25 September 2014
You have to appoint auditor for 5 year term subject to ratification at every AGM. A Transition period of 3 years has been provided to comply with the requirements of mandatory rotation of auditor.
Ratification does not require filing of ADT-1 but it will be a better practice if consent and eligibility certificate is obtained even in case of ratification.
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