The Ministry of Corporate Affairs (MCA) has rolled out a series of critical updates to several statutory compliance forms—specifically the ADT-1, ADT-2, ADT-3 and ADT-4 and MGT-7 and MGT-7A. These updates are aimed at enhancing audit transparency, improving data accuracy, and pushing forward digitization in corporate filings.
Here’s a quick breakdown of the key changes and how they differ from previous practices:
ADT Forms (Auditor-Related Filings): What’s New?
ADT-1: Appointment of Auditor in the Companies.
What’s Changed: For every listed public Company now must declare whether the Audit Committee’s recommendation (under Section 177) was considered by the Board before appointing an auditor.
Why It Matters: This brings greater clarity and accountability to board-level decisions.
ADT-2
New Requirement: For all the Companies a proof of service notice to the concerned auditor who is under removal before the expiry of the term is now mandatory as an attachment.
Earlier: This was not a strict requirement.
Impact: To ensures the auditor’s right to be heard in removal proceedings.
ADT-3
New Rule: The form must now include the SRN (Service Request Number) of ADT-1.
Previously: Could be filed independently without reference to earlier forms.
Result: Strengthens form linkage and traceability.
ADT-4
Key Update: All the Companies in which Auditor suspected fraud within a company can notify about the fraud to Central government by now filing of this form is now fully electronic which was previously in a manual format.
Earlier: Some cases allowed manual submission.
Effect: Promotes uniformity and a paperless process.
MGT-7 & MGT-7A (Annual Return Forms): Greater Transparency
Photo Evidence of Registered Office
Companies must now upload a photograph showing the external view of the registered office, with the name board clearly visible, along with GPS coordinates.
Purpose: Authenticates the existence and location of the business.
Dual Reporting Dates
Details must now reflect both the financial year-end and the date of filing, improving accuracy in dynamic company data.
Expanded Shareholding Disclosures
- Gender-wise shareholding is now mandatory for all shareholders.
- A sheet of all share transfers must be attached.
- Total number of shareholders must be clearly mentioned.
Attachment Formats
Only Excel (.xlsx) format is allowed for shareholder and debenture holder lists.
PDF or Word formats are no longer accepted.
MGT-8 Auto-Generation
Old Process: Manual PDF upload.
New System: MGT-8 will be auto-generated within the form based on the inputs, minimizing manual errors.
Why It Matters
These reforms clearly reflect MCA’s broader push for digitalized compliance, transparency in disclosures, and enhanced governance standards. For professionals and corporates alike, staying updated with these changes will be crucial to avoid penalties and ensure seamless filings in the new regime.
MCA revamps compliance forms ADT-1, ADT-2, ADT-3 and ADT-4 and MGT-7/7A with new rules on documentation, digital filing, and disclosure formats. Here’s what’s changed and why it matters.