Form ADT-3 is an ROC form that auditors must file when they resign from a company before completing their term. It contains the auditor’s resignation letter, reason for resignation, other comments, and professional observations under Section 140(2) of the Companies Act, 2013.
The objective is to ensure transparency when an auditor leaves, prevent sudden departures without explanation, and safeguard shareholder and stakeholder interests.
In one line:
ADT-3 is the mandatory “Auditor Resignation Statement” filed with MCA whenever an auditor resigns.
An auditor is appointed for a fixed term. If the auditor resigns before the term ends, MCA requires a formal statement that includes:
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Reason for resignation
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Any professional concerns
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Whether the auditor faced limitations or restrictions
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Whether management withheld information
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Any fraud suspicion or qualification-related matters
This ensures that companies cannot hide governance issues and auditors cannot leave silently due to disagreements.
Who Files Form ADT-3?
| Situations | Responsibility |
|---|---|
| Auditor resigns | Auditor must file ADT-3 |
| Branch auditor resigns | Branch auditor files |
| Audit firm resigns | Signing partner files |
| Casual vacancy created | Both auditor (ADT-3) + company (ADT-1) |
ADT-3 Filing Due Date (2025)
| Requirement | Due Date |
|---|---|
| Filing by resigning auditor | Within 30 days of resignation |
| Additional filing by company (ADT-1) | Within 30 days of receiving resignation |
Penalties for Not Filing ADT-3
| Particulars | Penalty |
|---|---|
| Auditor fails to file ADT-3 | Fine of ₹50,000 to ₹5,00,000 |
| Company fails to appoint new auditor | Penalties under Section 139 |
| Company delays ADT-1 | Additional fees up to ₹200/day |
Difference Between ADT-1 and ADT-3
| Form | Purpose | Filed By |
|---|---|---|
| ADT-3 | Auditor Resignation Statement | Auditor |
| ADT-1 | Appointment of New Auditor | Company |
People Also Ask (FAQ)
Q1. Is ADT-3 mandatory for all resignations?
Yes. Any resignation before term completion requires ADT-3.
Q2. Who signs ADT-3?
The resigning auditor/partner signs using their DSC.
Q3. What is the deadline?
30 days from the date of resignation.
Q4. Is ADT-1 required after ADT-3?
Yes, the company must file ADT-1 for appointing the new auditor.
Q5. Can an auditor resign without ADT-3?
No. It is a legal obligation; failure attracts penalty under Section 140.
Q6. Can ADT-3 be filed after 30 days?
Yes, but with additional fees and penalties.
Q7. Do branch auditors also file ADT-3?
Yes. The same rule applies.
Q8. Does the company need to approve auditor resignation?
No. Auditor resignation is unilateral; only ROC filing is required.
