Audit and agm for a new pvt ltd company

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Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2013 Ours is a new venture incorporated on 30 August 2012. Ours is a research based organisation and we do not expect any profit in the next 2 yrs. My queries:
1)How do we decide company's financial year?
2)By when should the first audit be done?
3)By when should the first AGM be held?

Ajay Mishra

Ajay Mishra (Expert)
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10 January 2013 Hi

In First Board Meeting of the company it will be decide that what will be the period of first financial year. The First financial year start from the date of Incorporation.

The first auditor will be appointed by Board of Director within a period of one month from the date of incorporation of the company.

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Ajay Mishra

Ajay Mishra (Expert)
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10 January 2013
TIME-LIMIT FOR HOLDING THE FIRST ANNUAL GENERAL MEETING

A new company which is registered under the Act, shall hold its first annual general meeting latest within a period of eighteen months from the date of its incorporation, namely, the date on which the Registrar has issued the certificate of incorporation to the company. If the first annual general meeting is so held, it is not necessary for the company to hold another annual general meeting in the year of its incorporation or in the following year. It may also be noted in this connection that the accounts placed before the first annual general meeting shall be for the period beginning from the date of incorporation and ending on a day of financial year, which will not precede the first annual general meeting by more than nine months from the close of the first financial year of the company — section 210(3).

This may be illustrated by the following example: Date of incorporation of company 23-10-2010 Date by which the first annual general meeting ought to be held 22-04-2012 The holding of the first annual general meeting shall comply with the following criteria of the Act:—
(i) The gap between the last date of the accounting period and the meeting shall not exceed 9 months, and
(ii) The second annual general meeting shall be held during the third year of incorporation.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2013 Thanks a lot Sir. One more doubt:
So if our financial year is from August 2012 to 31 March 2013, the first AGM is to be held within 9 months from 31 March 2013 i.e by December 2013, is it?