ADT-3 is an intimation form required to be filed by the auditor for intimating RoC about his resignation from the company as an auditor. Following can be few of the reasons for the resignation of an auditor which require filing this form:
- The unwillingness of the auditor to get reappointed
- Inability to execute work undertaken due to pre-occupation.
- Ill health of auditor
- Dispute with client
- Inability to continue audit due to surpassing the ceiling on the number of audits etc
Section 140(2) of the Act, Rule 8 of The Companies (Audit and Auditors) Rules, 2014 requires auditors to file intimation about its resignation with RoC on MCA website.
Who has to file ADT-3?
An auditor who resigns from his office of auditor of the company is required to file form ADT-3 within 30 days from the date of his resignation on MCA portal and with the company. Moreover, the responsibility to file ADT-3 lies with auditor not the company.
Further, in the case of Government Company, the auditor shall also file such intimation with the Comptroller and Auditor-General of India.
Information required to be furnished in form ADT-3
Form ADT-3 contains following information:
- Corporate Identification Number (“CIN”)
- Category of Auditor (Individual or Firm)
- Income Tax PAN of auditor/Auditor’s firm
- Name of Auditor/Auditor’s firm
- Membership number of auditor/Auditor’s firm
- Address of Auditor/Auditor’s firm
- Date of appointment as auditor as well as Date of the resignation of auditor
- Reasons for resignation as well as any other facts relevant to the resignation.
Fees for filing this form
Following is the fee structure based on share capital:
| Share capital | Fee Applicable |
| Less than INR 1,00,000 | INR 200 per document |
| 1,00,000 to 4,99,999 | INR 300 per document |
| 5,00,000 to 24,99,999 | INR 400 per document |
| 25,00,000 to 99,99,999 | INR 500 per document |
| I,00,00,000 and above | INR 600 per document |
However, in case of company without share capital, fee applicable is INR 200 and in case of foreign company, applicable fee is INR 6,000
Consequences of non-filing of ADT-3 within the stipulated time
Provisions relating to penal consequences for delay in filing of ADT-3 are there in Section 140(3) of Companies Act, 2013.
As per section 140(3), if the auditor fails to file ADT-3 within time limit then he will be liable to pay a penalty of INR 50,000 or amount equal to his remuneration, whichever is less.
Further, In the case of continuing failure, an additional penalty of INR 500 for each day during which defaults continues will be applicable. Such penalty will not exceed INR 5,00,000.
Also, While filing ADT-3, it is mandatory to attach resignation letter. However, auditor may make any other optional attachment also.
FAQs
Yes, ADT-3 should be filed by every auditor at the time of resignation irrespective of the nature of the company as a public company or a Private Limited Company or Government Company.
Auditor has to file Form ADT-3 within 30 days from the date of resignation.
No, Provisions related to the removal of auditors by the company are given u/s 140(1) of the act.
As per section 140(1) of the Act, for the purpose of removal of the auditor before expiry of his tenure, the company has to pass special resolution along with prior approval of the Central Government.
Company shall file an application for removal of the auditor in form ADT-2
Auditor has to attach a resignation letter mandatorily along with the Form. It is also a responsibility of an auditor to provide this resignation letter to the company.
Hi @Dixita
ADT-2 is to be filed for removal of auditor(s) from their office before expiry of term while ADT-3 is the notice of resignation by the Auditor.
A Company will need to hold a Board Meeting and pass a resolution in such cases. You can read more about that here:
Hope this helps!