Introduction

The ADT-3 form is an essential compliance document under the Companies Act, 2013, required when an auditor resigns before completing their term. Filing ADT-3 on time ensures transparency and smooth regulatory compliance. But when should you submit ADT-3 to the ROC? Understanding the correct timeline and process is crucial for both auditors and companies.

What is ADT-3?

ADT-3 is a form that a resigning auditor must file with the Registrar of Companies (ROC) to officially notify their resignation. This process ensures that the company remains compliant with financial regulations and maintains transparency with stakeholders.

When Should You Submit ADT-3?

1. Within 30 Days of Resignation

The ADT-3 form must be submitted to the ROC within 30 days of the auditor’s resignation. This timeline is legally mandated under the Companies (Audit and Auditors) Rules, 2014.

2. Immediately After Informing the Company

Once an auditor resigns, they must first inform the company’s Board of Directors. After providing official notice, they should promptly file ADT-3 to avoid any non-compliance issues.

3. Before the Company Appoints a New Auditor

A company must appoint a new auditor within 30 days of the previous auditor’s resignation. Filing ADT-3 promptly allows a smooth transition and ensures the company does not face regulatory hurdles.

How to Submit ADT-3 to the ROC?

Step 1: Gather Required Details

  • Company’s Corporate Identification Number (CIN)
  • Auditor’s membership details
  • Resignation date and reason
  • Digital Signature Certificate (DSC)

Step 2: Log in to the MCA Portal

Access the Ministry of Corporate Affairs (MCA) portal and download the latest version of ADT-3.

Step 3: Fill Out the Form

Ensure all details are correctly entered, including:

  • Company and auditor details
  • Reason for resignation
  • Supporting documents (resignation letter, acknowledgment from the company, etc.)

Step 4: Attach Digital Signature & Submit

Use the Digital Signature Certificate (DSC) of the resigning auditor and submit ADT-3 online through the MCA portal.

Consequences of Late Submission

  • Legal Penalties: Failure to submit within 30 days may lead to fines and penalties under the Companies Act.
  • Regulatory Scrutiny: Non-compliance may attract investigation by the ROC.
  • Reputational Impact: Delayed filing may affect an auditor’s credibility and professional standing.

Conclusion

Submitting ADT-3 to the ROC on time is a legal necessity that helps maintain financial transparency and corporate integrity. Auditors must ensure they complete this process within 30 days of resignation to avoid penalties and ensure smooth transitions for the company. Always prioritize compliance to uphold professional credibility and regulatory adherence.

Source: https://organiqo.com/index.php/blog/8471/when-should-you-submit-adt-3-to-the-roc/