Preparation of Financial Statements of a new company

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This query is : Resolved

Manoj Kumar Joshi (Querist)

10 June 2009 A private comapny has been incorporated on 19th February, 2008 and it proposes to hold its first AGM in July, 2009. Will the final accounts be prepared from 19.02.2008 till 31.03.2009 or from 19.02.2008 till 31.03.2008 and then from 01.04.2008 to 31.03.2009. Kindly guide me in this regard and what about audit of accounts in this case?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

10 June 2009 In the case of the first annual general meeting of the company, the profit and loss account shall relate to the period beginning with the incorporation of the company and ending with a day which shall not precede the day of the meeting by more than nine months and in the case of any subsequent annual general meeting of the company, to the period beginning with the day immediately after the period for which the account was last submitted and ending with a day which shall not precede the day of the meeting by more than six months.

moreover, financial year may be less or more than a calendar year, but it shall not exceed fifteen months.

since in the second the case ( from 19.02.2008 till 31.03.2009 companies Act is not violating, you should choose second case

now in respect of Audit
1. 1st auditor is appointed till the conclusion of 1st AGM of the company . so only one auditor will be appointed till first AGM i.e. July, 2009

and if you choose one financial year from 19.02.2008 to 31.3.2009, only one audit report must be made signed and filed to ROC

regards...!