ADT-3 AND ADT-1
This query is : Resolved
17 January 2026
IF A COMPANY HAS APPOINTED FIRM OF AUDITOR FOR THE FY2024-25 IN AGM BUT AFTER THAT THE AUDITOR DIED THEN NOW WHAT COMPLIANCES TO BE MADE BY THE COMPANY AND THE PREVIOUS AUDITOR FIRM...PLEASE GUIDE ME STEP WISE
17 January 2026
In 2026, the death of a partner in an audit firm (or a sole auditor) creates a casual vacancy under Section 139(8) of the Companies Act, 2013.
The following steps must be taken to ensure compliance for the financial year 2024-25 (Assessment Year 2025-26):
Step 1: Board of Directors' Action (Within 30 Days)
The Board must meet to fill the vacancy created by the death.
Recommendation: If the company is required to have an Audit Committee, the committee must first recommend a new auditor to the Board.
Board Meeting: Convene a meeting and pass a resolution to appoint a new auditor within 30 days of the vacancy.
Tenure: The new auditor appointed to fill a casual vacancy (due to death) holds office only until the conclusion of the ensuing Annual General Meeting (AGM).
The following steps must be taken to ensure compliance for the financial year 2024-25 (Assessment Year 2025-26):
Step 1: Board of Directors' Action (Within 30 Days)
The Board must meet to fill the vacancy created by the death.
Recommendation: If the company is required to have an Audit Committee, the committee must first recommend a new auditor to the Board.
Board Meeting: Convene a meeting and pass a resolution to appoint a new auditor within 30 days of the vacancy.
Tenure: The new auditor appointed to fill a casual vacancy (due to death) holds office only until the conclusion of the ensuing Annual General Meeting (AGM).
17 January 2026
Step 2: Obtain Consent and Eligibility Documents
Before the formal appointment, the company must obtain from the new auditor:
Written Consent: Confirmation of their willingness to act as the statutory auditor.
Eligibility Certificate: A certificate stating they are not disqualified under Section 141 and that the appointment complies with the limits prescribed under the Act.
Before the formal appointment, the company must obtain from the new auditor:
Written Consent: Confirmation of their willingness to act as the statutory auditor.
Eligibility Certificate: A certificate stating they are not disqualified under Section 141 and that the appointment complies with the limits prescribed under the Act.
17 January 2026
Step 3: Filing with the ROC (Within 15 Days)
The company must notify the Registrar of Companies (ROC) of the new appointment.
Form ADT-1: File this form within 15 days of the Board meeting where the appointment was made.
Attachments: Certified copy of the Board resolution, the new auditor's consent letter, and their eligibility certificate.
The company must notify the Registrar of Companies (ROC) of the new appointment.
Form ADT-1: File this form within 15 days of the Board meeting where the appointment was made.
Attachments: Certified copy of the Board resolution, the new auditor's consent letter, and their eligibility certificate.
17 January 2026
Step 4: Previous Auditor's Firm Compliance
Form ADT-3 (Not Required): Unlike a resignation, Form ADT-3 is NOT required to be filed in the case of an auditor's death.
Firm Continuity: If the audit was being conducted by a firm and other partners remain, they may continue the audit unless the death of a specific partner makes the firm ineligible or the firm itself is dissolved.
Form ADT-3 (Not Required): Unlike a resignation, Form ADT-3 is NOT required to be filed in the case of an auditor's death.
Firm Continuity: If the audit was being conducted by a firm and other partners remain, they may continue the audit unless the death of a specific partner makes the firm ineligible or the firm itself is dissolved.
17 January 2026
Step 5: Shareholder Approval (Optional for Death-Related Vacancy)
Requirement: For vacancies caused by death (as opposed to resignation), the Companies Act generally allows the Board to fill the vacancy without mandatory shareholder approval within 3 months, unless specifically required by the company's Articles of Association.
Upcoming AGM: The appointment made by the Board must still be presented for shareholder approval/ratification at the next AGM to continue their term.
For the FY 2024-25 audit:
Tax Audit Filing: The extended due date for filing tax audit reports for FY 2024-25 (AY 2025-26) was October 31, 2025. If this deadline has passed, ensure the new auditor completes the audit immediately to minimize penalties.
Requirement: For vacancies caused by death (as opposed to resignation), the Companies Act generally allows the Board to fill the vacancy without mandatory shareholder approval within 3 months, unless specifically required by the company's Articles of Association.
Upcoming AGM: The appointment made by the Board must still be presented for shareholder approval/ratification at the next AGM to continue their term.
For the FY 2024-25 audit:
Tax Audit Filing: The extended due date for filing tax audit reports for FY 2024-25 (AY 2025-26) was October 31, 2025. If this deadline has passed, ensure the new auditor completes the audit immediately to minimize penalties.
17 January 2026
Sir means if a company want to change its auditor due to death only adt 1 is required to be filed . No need to file adt3
17 January 2026
If adt 3 is not filed how roc will get the information regarding change of auditor is due to death
17 January 2026
If adt 3 is not filed how roc will get the information regarding change of auditor is due to death
17 January 2026
In 2026, the filing requirements for changing an auditor due to death are as follows:
Form ADT-3 is NOT required: This form is specifically for the resignation of an auditor. Since death is a "casual vacancy" and not a resignation, and because the deceased auditor cannot digitally sign the form, ADT-3 is not necessary and cannot be filed.
Form ADT-1 IS required: The company must file Form ADT-1 with the Registrar of Companies (ROC) to report the appointment of the new auditor filling the vacancy.
Form ADT-3 is NOT required: This form is specifically for the resignation of an auditor. Since death is a "casual vacancy" and not a resignation, and because the deceased auditor cannot digitally sign the form, ADT-3 is not necessary and cannot be filed.
Form ADT-1 IS required: The company must file Form ADT-1 with the Registrar of Companies (ROC) to report the appointment of the new auditor filling the vacancy.
17 January 2026
Registrar of Companies (ROC) is informed of an auditor's death through the filing of Form ADT-1, which contains specific fields for reporting the cause of the vacancy.
If a casual vacancy occurs due to death, the company provides the information in the following ways:
Nature of Appointment in ADT-1: When filling out Form ADT-1 for the new auditor, the company must select "Appointment due to Casual Vacancy" as the nature of appointment.
Reason and Date of Vacancy: The form requires the company to explicitly state the reason (death) and the date of the vacancy.
Details of Outgoing Auditor: Form ADT-1 includes a section for the details of the previous auditor, such as their name and membership number, which the ROC uses to update its records and close the previous auditor's tenure.
Mandatory Attachments: The company must attach a Certified True Copy of the Board Resolution passed for the new appointment. This resolution must record the death of the previous auditor as the reason for the casual vacancy.
If a casual vacancy occurs due to death, the company provides the information in the following ways:
Nature of Appointment in ADT-1: When filling out Form ADT-1 for the new auditor, the company must select "Appointment due to Casual Vacancy" as the nature of appointment.
Reason and Date of Vacancy: The form requires the company to explicitly state the reason (death) and the date of the vacancy.
Details of Outgoing Auditor: Form ADT-1 includes a section for the details of the previous auditor, such as their name and membership number, which the ROC uses to update its records and close the previous auditor's tenure.
Mandatory Attachments: The company must attach a Certified True Copy of the Board Resolution passed for the new appointment. This resolution must record the death of the previous auditor as the reason for the casual vacancy.
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