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Period of accounts for which appointed

04 April 2011

A Private Limited Company Incorporated on 14.03.2011 and want to file Auditor Appointment. What should be "Period of accounts for which appointed"

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udit sharma (Company Secretary) (2303 Points)
Replied 04 April 2011

The First Statutory Auditor should be appointed to audit the account for the First Financial year of the Company.

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Abhijit Ghosh (.) (618 Points)
Replied 04 April 2011

Originally posted by : udit sharma
	The First Statutory Auditor should be appointed to audit the account for the First Financial year of the Company.

i.e. 14.03.2011 to 31.03.2011 or 01.04.2011-31.03.2012?

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 04 April 2011

Since your company is incorporated only on 14.03.2011, you have the option of closing your accounts on 31.03.2011 or 31.03.2012. Please refer to Section 210 of the Companies Act, 1956. Depending on the accounts closing date as chosen by you, Statutory auditors may be appointed.

As per Section 224 of the Companies Act, 1956, the Auditor holds Office until the conclusion of the next AGM and not till the accounts closing date. Hence you may appoint him till the conclusion of the next AGM.

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Abhijit Ghosh (.) (618 Points)
Replied 04 April 2011

I has been decided by board in their first board meeting that

"the first “Financial Year” of the Company be the period starting from the date of incorporation of the Company viz 14^th March, 2011 to 31^st March, 2011 both days inclusive, and the first statement of accounts of the company shall relate to the same period."

i.e. we have to take 14.03.2011-31.03.2011. If so then how to appointment him for the F.Y. 2011-12

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 04 April 2011

If your FY is going to be 14.03.2011 to 31.03.2011 then you have to conduct first AGM on or before 31.12.2011, as per Section 210(3)(a) of the Companies Act, 1956. So the Statutory Auditor will be appointed till the conclusion of the first AGM.

At the first AGM, you will take up reappointment of auditor as agenda item and pass a resolution reappointing him for the FY 2011-12.

Hope it's clear.

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Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 04 April 2011

You cannot appoint him right now for the FY 2011-12.