Appointment of Auditor

According to section 139,  Board of Director shall appoint the first auditor within 30 days of incorporation of the Company who shall hold the office till the conclusion of first Annual General Meeting of the Company. And as per section 96 of the Companies Act, Company is required to hold its First AGM within 9 months from the closure of financial year. Suppose the Company is incorporated in January 2016. It must hold its AGM at last by December 2017. And as per Companies Audit Rule ADT needs to be filed within 15 days of AGM. So in case of first Auditor no need to file ADT 1. such first Auditor shall hold the office till December 2017. so till December 2017, no need to file any form as per the example given above.

Thanks

First of all it is irrelevent that company is loss making or not!!

Board of Director shall appoint the first auditor within 30 days of incorporation of the Company

First Auditor shall hold the office till the conclusion of first Annual General Meeting of the Company.

Company is required to hold its First AGM within 9 months from the closure of financial year.

Intimation of Auditor appointment needs to be given to ROC by filing online Form ADT-1  within 15 days of AGM. but in case of first Auditor no need to file ADT 1. 
 

Section 139(1) lays down that every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting. Provided that the company shall place the matter relating to such appointment for ratification by members at every annual general meeting.

The following procedure is to be followed for appointment of an auditor at the first Annual General Meeting [Section 139 & 141 and Rule No. 3, 4 and 10 of the Companies (Audit and Auditors) Rules, 2014] - https://lexcomply.com/l9u5

As per section 139 of Companies Act 2013, first auditor shall be appointed by the board within 30 days of its incorporation, if the board fails to do so the members at a general meeting shall make the appointment. Appointment of auditor is mandatory to all companies irrespective of the fact whether it is loss making or not.

Thanks for your response faculty..........