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.
(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.
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.
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:
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
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: firstname.lastname@example.org, Mobile: +91-9953199493)