Company’s Auditor Change (Appointment & Resignation)

Switch auditors smoothly, stay Companies-Act compliant, and keep investor confidence high — powered by Finance Shelter

Picture this…

Your AGM is a month away. The incumbent auditor sends a surprise resignation citing “independence concerns.” MCA expects ADT-3 within 30 days, lenders want a fresh audit engagement letter, and your CFO is fielding shareholder calls.

In the Finance Shelter version, the Board meets same day on a digital agenda we prepare, ADT-3 and ADT-1 are e-filed within 48 hours, a Big-6 replacement auditor is on-boarded, and your financial statements sail through the AGM—zero penalties, zero panic.

1. Why Auditor Transitions Matter

• Statutory clock – Failure to file ADT-3/ADT-1 within 30 days triggers ₹300/day penalties and director liability.
• Market perception – Sudden exits spook investors; a managed hand-over maintains credibility.
• Audit continuity – Gaps delay financial statements, tax filings, loan covenants, and IPO timelines.
• Fresh insight – The right new auditor can strengthen controls and unlock process efficiencies.

2. Scenarios We Handle End-to-End

1. Ordinary rotation (5-year term ends) – Board & shareholder approval, ADT-1 filing.
2. Casual vacancy by resignation – ADT-3 from outgoing auditor, Board resolution, EGM within 3 months.
3. Casual vacancy by removal – RD application (GNL-2), special resolution, new auditor within 60 days.
4. First-auditor appointment after incorporation / conversion.
5. Group audit realignment – Common auditor across parent and subsidiaries for consolidation ease.

3. Finance Shelter’s 4-Step “Audit-Shift” Protocol

1. Compliance Blueprint – Analyse reason for change, map statutory path, draft Board/EGM notices and resolutions.
2. ROC Filings On Fast-Track – ADT-3, ADT-1, GNL-2 (if removal) digitally signed and uploaded; SRNs tracked till “Approved.”
3. Handover Kit – Obtain NOC, gather working-paper access, prepare management rep letters for seamless transition.
4. Stakeholder Broadcast – Market announcement templates, lender intimations, website footer update, statutory registers.

Fastest record: 3 business days from resignation letter to new auditor certificate.

4. Pitfalls We Neutralise

• Filing ADT-3 without Board acknowledgment—ROC marks “defective.”
• Missing EGM for resignation-based vacancy—directors become liable under Sec 139(8).
• Overlooking RBI / IRDA / SEBI intimation for regulated entities.
• Neglecting UDIN generation—new auditor’s report deemed invalid.

Our 45-point checklist ensures zero loose ends.

5. Success Snapshots

• NBFC-ICC – Mid-year auditor exit handled; fresh CAT-II auditor appointed and RBI informed within 5 days—no supervisory action.
• Listed manufacturing Co. – Auditor rotation across 4 subsidiaries synchronised; consolidated accounts filed on time, saving ₹8 lakh late-fee exposure.
• Boot-strapped start-up – Transitioned to Big-4 ahead of Series B diligence; improved valuation multiplier by 12%.

6. Why Finance Shelter Wins

• Former ROC officers + Big-4 audit seniors steer every file.
• 3-day fastest end-to-end transition, 100% on-time SRN approvals.
• One-window for Board support, MCA filings, SEBI/RBI intimations, and lender communication.
• Flat-fee or turnkey pricing—no per-form surprises.