Resignation of company auditor and filing of form ADT3 with ROC

In our previous articles, we have discussed steps for appointing a company auditor, filing of e-form ADT-1 and qualification required to be an auditor.

An auditor appointed under section 130 of Companies Act 2013, can resign after his or her appointment. When an auditor ceases to hold office after resignation as company auditor, the auditor is obliged under section 140 of companies act 2013 read with rule 8 of the companies (audit and auditors) rules, 2014 to notify registrar of companies or ROC within 30 days from the date of resignation by filing a statement in the prescribed form ADT3.

This means, if your date of resignation is 10th June 2015 then ADT3 has to be filed within 30 days from the date of resignation i.e. 10th June 2015.

Prior to filing form ADT3, the auditor is also required to intimate his or her resignation to the company in writing.

If the auditor is appointed under section 139(5) of companies act 2013, then they are also required to file such statements with the controller and auditor general of India.

resignation of company auditor and filing form ADT3

As per companies act 2013, when a company auditor resigned before the end of his or her term they must explain the facts in a notice to the registrar of companies or ROC. Such notice should state the reason connected with their resignation and any other relevant facts related to the resignation.

This means, while filing form ADT3 with registrar of companies and intimating to company for resignation, the auditor is required to mention the date of resignation, reason of resignation and any other facts relevant to the resignation in addition to other details as required.

Please remember that form ADT1 is required to be filed by the company but form ADT3 is to be filed by the auditor after intimating to the company.

Form ADT3 has to be attached with following documents;

  • Scanned copy of resignation letter sent to company by auditor
  • Any other documents in support of resignation

You need to remember that the timing of 30 days for filing form ADT3 start from the date that you mentioned as your resignation date in the resignation letter sent to company.

Fees charged for filing form ADT3 with registrar of companies

Fee for filing form ADT3 depends on the nominal share capital of a company. Here is the fee details that the company auditor is required to pay to ROC while filing form ADT3 for his or her resignation as auditor;

Nominal share capital limit Normal fee for filing form ADT3
Less than Rs. 100000 Rs. 200
From Rs.100000 to Rs. 499999 Rs.300
From Rs. 500000 to Rs.2499999 Rs. 400
From 2500000 to Rs. 9999999 Rs.500
Rs. 10000000 and more Rs. 600

These filing fees will be automatically picked by the system after uploading form ADT3 based on the nominal share capital of the company. In case of a company not having share capital the filing fee is Rs. 200 and for a foreign company it’s Rs. 600.

In case of delay in filing form ADT3, the auditor will be liable to pay additional fee which will be in addition to the normal fee as discussed above. Here are the additional fee details;

Period of delay Additional fee for delay in filing form ADT3
For delay up to 30 days 2 times of normal fee
If delay is more than 30 days and up to 60 days 4 times of normal fee
If delay is more than 60 days and up to 90 days 6 times of normal fee
If delay is more than 90 days and up to 180 days 10 times of normal fee
If delay is more than 180 days 12 times of normal fee

Procedure of resignation of company auditor

  • Send a resignation letter to company stating the reason of resignation, date of resignation and other relevant facts related to resignation.
  • Download form ADT3 from MCA site
  • Fill it up and attach resignation letter scanned copy and other documents if required
  • Upload form ADT3 with auditor’s DSC within 30 days from the date of resignation

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