Introduction

The ADT-3 form is a crucial compliance document under the Companies Act, 2013. It is mandatory for auditors who resign from a company before their term ends. Filing the ADT-3 form on time ensures transparency and smooth regulatory compliance. But when should you file the ADT-3 form? This guide explains the right timing, procedures, and consequences of delays.

What is the ADT-3 Form?

The ADT-3 form is a regulatory filing that an auditor must submit to inform the Registrar of Companies (ROC) about their resignation. As per Rule 8 of the Companies (Audit and Auditors) Rules, 2014, filing this form is a legal obligation.

When Should You File the ADT-3 Form?

1. Within 30 Days of Resignation

According to the Companies Act, an auditor must file the ADT-3 form within 30 days of their resignation date. This is a mandatory deadline, and any delay can attract penalties.

2. Immediately After Informing the Company

Once the auditor submits their resignation letter to the company’s board, they should promptly file the ADT-3 form to the ROC. This ensures that the company can proceed with appointing a new auditor without compliance issues.

3. Before the Company Appoints a New Auditor

The company must appoint a new auditor within 30 days of the previous auditor’s resignation. Filing the ADT-3 form on time allows a smooth transition, preventing any regulatory hurdles.

Step-by-Step Process to File ADT-3 Form

Step 1: Gather Required Details

• Company name and Corporate Identification Number (CIN)

• Auditor’s registration details

• Reason for resignation

• Date of resignation

Step 2: Complete the ADT-3 Form

The auditor must fill in accurate details and attach the resignation letter.

Step 3: Digitally Sign the Form

A Digital Signature Certificate (DSC) is required for submission.

Step 4: Submit via the MCA Portal

The auditor must upload the ADT-3 form to the Ministry of Corporate Affairs (MCA) portal and pay the applicable fees.

Consequences of Not Filing the ADT-3 Form on Time

• Legal Penalties: Failure to file within 30 days can result in fines and penalties under the Companies Act.

• Regulatory Issues: The ROC may take action against the auditor for non-compliance.

• Professional Consequences: Auditors who fail to file the ADT-3 form may face restrictions in future audit appointments.

Conclusion

Filing the ADT-3 form on time is essential for maintaining corporate governance and regulatory compliance. Auditors should ensure they complete this process within 30 days to avoid penalties and facilitate a smooth transition for the company. If you are an auditor planning to resign, make sure to submit the ADT-3 form promptly and accurately.