CA Pratik Anand
Form ADT-3 is to be filed for resignation by auditor from the company as an auditor within 30 days of resignation.
E Form ADT-3 is required to be filed pursuant to Section 140(2) of the Companies Act, 2013 and Rule 8 of the Companies (Audit and Auditors) Rules, 2014 which are reproduced for your reference.
Section 140:
(2) The auditor who has resigned from the company shall file within a period of thirty days from the date of resignation, a statement in the prescribed form with the company and the Registrar, and in case of companies referred to in sub-section (5) of section 139, the auditor shall also file such statement with the Comptroller and Auditor-General of India, indicating the reasons and other facts as may be relevant with regard to his resignation.
Rule 8:
Resignation of auditor —For the purposes of sub-section (2) of section 140, when an auditor has resigned from the company, he shall file a statement in Form ADT-3.
Purpose of the eForm
Auditor resigning from the company shall file within 30 days from the date of resignation, a statement in Form ADT-3 with the registrar. This E-Form has been introduced in the Companies Act 2013.
Penal provisions
As per Section 140(3), If the auditor does not comply with sub-section (2), he or it shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.
Therefore, if the auditor fails to inform the ROC about the resignation then there may be penalty of Rs. 50,000/- to 5 lacs.
The auditor has to state the following in the E-form ADT-3:
- The date of resignation will be the date written in the resignation letter.
- The auditor has to state the exact reasons for resigning. These are written in the resignation letter as well as the form ADT-3.
- Other facts relevant to resignation can be anything which is necessary for the company as well as the ROC to know with regard to the resignation.
- Since this form is a declaration by the auditor, therefore has to be signed by the auditor only.
Sequence of events for Resignation of Existing Auditor and appointment of New auditor will be as follows:
For the Company
1) Receive the Resignation Letter alongwith Form ADT-3 from the resigning Auditor.
2) Call a Board Meeting for acceptance of the resignation.
3) Call a Board Meeting for filing the Casual Vacancy and approve the notice for EGM.
4) Hold the EGM and approve the Auditor’s Appointment.
5) Now file Form No.MGT-14 for the filing of the Resolution passed at EGM
6) File ADT-1 for new Auditor’s Appointment.
For Resigning Auditor
- File ADT-3 alongwith resignation letter with company.
- File ADT-3 alongwith resignation letter and reasons for resignation with ROC.
The 30 days time for filing ADT-3 with the ROC starts from the date of resignation i.e the date written in the resignation letter.
The fee for filing ADT-3 depends on the nominal share capital of the Company:
| Nominal share Capital in Rs. | Fee for ADT-3 |
| Less than Rs. 1,00,000/- | 200/- |
| 1,00,000/- to Rs. 4,99,999/- | 300/- |
| 5,00,000/- to 24,99,999/- | 400/- |
| 25,00,000/- to 99,99,999/- | 500/- |
| 1,00,00,000 & above | 600/- |
In case of delay Additional fees will be levied as follows:
| Period of Delay | Additional fee |
| Delay upto 30 days | 2 times of normal fees |
| 30-60 days | 4 times of normal fees |
| 60-90 days | 6 times of normal fees |
| 90-180 days | 10 times of normal fees |
| Above 180 days delay | 12 times of normal fees |
Hope you find the above information in order.
(The author is a CA in practice at Delhi and can be contacted at: E-mail: [email protected], Mobile: +91-9953199493)
Author Bio
I cant able not fie the ADT-3 with ROC as company is under liquidation. is this situation how to inform to ROC
What to do when ADT-3 filled with wrong information and challan has been generated.
Please suggest .
Any other Forms with Registrar means.Please specify the Forms.
Good Afternoon!!
Dear sir,
I would like to ask you about, what date we have to mention in Form ADT-3 near the box of Date of auditor appointment i.e.,original date of appointment by the BOD at the time of company incorporation or Re-appointment of members in the AGM for 5years.
After completion of tenure of auditors ie 5 years, whether any form is filed with the Registrar
Thanks to Tax Guru for providing updated and relevant information on different financial issues.
Is there any posibility to revise the ADT-3 In case of wrong date of registration giving in the Attached document and in ADT-3 Form As well ??
what happens if board fails to appoint auditor during casual vacancy within 30 days
DEAR SIR,
IF AUDITOR RESIGN AND FILE ADT-3, WITH LATE FEE OF RS 5200/- BUT AFTER SUBMISSION ADT-3 WAS REJECTED.
IN THIS SITUATION WHAT I CAN DO
PLS GIVE ME SOLUTION .
IS THE AUDITOR REQUIRED TO FILE FORM ADT-3 even in case of LLP
What procedures should be followed by the new auditor, if the previous one has resigned, but cannot be contacted for filling of ADT-3 form?
Are these provision applicable the private companies?
well written and useful article
What if the auditor is replaced in AGM . What is the procedure if a new auditor is appointed in AGM by the company.
what is the impact of 140(3) if we late file the form. do only late fine will be levied or also penalty.
What if the auditor is replaced in AGM . What is the procedure if a new auditor is appointed in AGM by the company.
Thanks.
Sir, Do we need to file Form MGT-14 in this case.
Because Section 139(8) of Companies Act, 2013 wants ONLY the Confirmation by shareholders at EGM. There is nowhere specified that it requires to be confirmed by Special Resolution.???
Thanks
What when an auditor resign at the year ending, after expiry of his tenure/term of appointment and re-appointed as an auditor for the subsequent financial year. Whether form ADT 3 is required?
Vedika Bhangre
excellent and informative article.avardhana
If an auditor whoes period is determined and he is not willing to be appointed as an auditor for succeeding period whether this action would be treated as an ‘RESIGNATION’ AND he will have to make compliance as stated in your ‘Article’
K.N. AJMERA