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*MCA Relaxation for Filing of Form CRA-4 (FY 2024–25)*

The Ministry of Corporate Affairs (MCA), through General Circular No. 07/2025 dated 27 October 2025, has provided relaxation from payment of additional fees for filing Form CRA-4 (Cost Audit Report in XBRL format) for the financial year ending 31 March 2025.

📌 Reason for Relaxation:
Deployment of the revised CRA-4 form on the MCA V3 portal.

📅 Key Timeline:

No additional fees will be charged for CRA-4 filings up to 31 December 2025.

*Filings after 31 December 2025 will attract normal and additional fees as per:*

Companies (Registration Offices and Fees) Rules, 2014, and Rule 6(6) of the Companies (Cost Records and Audit) Rules,

*📌ADT‑1 Filing Now Mandatory for First Auditor Appointment*

*From 14 July 2025, a pivotal change under the Companies (Audit and Auditors) Amendment Rules, 2025* mandates that *Form ADT‑1 must be filed* even when a company’s first statutory auditor is appointed by the Board of Directors.

*🏛️Background: What Has Changed?*
➤ *Previously*: Under Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014, Form ADT‑1 was not required if the Board appointed the first auditor, i.e. *within 30 days of incorporation*. Only auditor appointments made via shareholders or at AGMs required filing.

➤ *Now*: *Effective 14 July 2025*, the same appointment by the Board must be *reported via Form ADT‑1* - this represents a significant tightening of early-stage statutory compliance.

*✅Key Highlights: New Filing Requirements*
_Effective Date_
➤ Notification: G.S.R. 359(E), dated 30 May 2025
➤ Effective from: 14 July 2025
*Filing Obligation*
➤ Form ADT‑1 must be filed within 15 days of the Board’s appointment of the first auditor.
➤ Applies to all auditor appointment routes: Board, members (EGM), or C&AG (for government entities)

*Revised Form ADT‑1*
_Now includes a dropdown for appointment type:_
➤ “First auditor by Board”
➤ “by Members”
➤ “by C&AG”
➤ Designed to enhance specificity and data clarity

*📋Who Is Subject to the Rule?*
➤ All companies incorporated on or after *14 July 2025*, including private, public, listed/unlisted, and OPCs
➤ *Editor’s Note*: If first auditor appointment occurs before this date, companies can rely on the previous exemption.

*📅Compliance Timeline (Example)*
➤ *Incorporation*: 1 August 2025
➤ *First Board meeting*: held by 30 August 2025 → auditor appointed
➤ *ADT‑1 filing due*: by 14 September 2025 (15 days post appointment)

*⚠️Penalties for Non‑Filing or Delay*
➤ ADT‑1 must be accurately filed within 15 days of appointment.
➤ Late filing penalties escalate from 2× to 12× the normal fee, depending on delay duration under ROC rules.

*📌Real‑World Implications*
➤ Corporate secretarial teams and compliance officers must update standard operating procedures to include ADT‑1 for the first auditor.
➤ Incorporation workflows must be mapped to ensure Board meetings, auditor appointment, and ADT‑1 filings are synchronized within statutory timelines.
➤ Governance advisors, audit firms, and newly formed companies should factor this mandatory filing into early-stage compliance checklists.

*💡Why This Matters: Governance & Regulatory Oversight*
The amendment underscores the MCA’s drive toward greater transparency and traceability in corporate disclosures. By capturing first auditor appointments via ADT‑1, regulators can enhance visibility and ensure smoother statutory compliance reviews later.
⸻
*🧭Final Thought*
The ADT‑1 amendment effective *July 14, 2025*, is more than procedural—it’s a corporate governance milestone. It ensures early audit oversight is transparent and traceable from the *moment a company is incorporated*.

Compliance professionals and Board members must act immediately to incorporate this change into their legal and secretarial frameworks.

📢 ITR Filing for FY 2024-25 is Now Open! 🧾

Don’t wait till the last minute! File your Income Tax Return on time and avoid penalties. If you want our expert help in filing your return, kindly share your details with us at the earliest.

✅ Benefits of Timely Filing:

Save up to ₹5,000 penalty under Section 234F
Stay compliant with tax laws 📘
Get your refund faster 💸

📄 Documents Required:

PAN & Aadhaar
Form 16 (if applicable)
Bank details
Investment proofs & other financial documents

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