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Auditing

Deepak Sharma (Account Manager) (24 Points)

08 March 2013

All respected Sirs

I just formed a new Inida pvt limited company on dated 7th March, 2013. Regarding that I have some query.

1. is it complessory to me to go for auditing for this company in the current financial year.

2. in this company we want to start selling International sim card to the indian who want to go outside the india, so my question is what are the other formalities i need to done before to selling the sim cards.

Thanks in advance.

With regards

Deepak Sharma

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1 Replies

Sonam Bidasaria (CA) (770 Points)
Replied 09 May 2013

Sec 2(17) describes financial year as the period in respect of which any profit and loss account of the body corporate laid before it in annual general meeting is made up, whether that period is a year or not.

And as per First Proviso to Sec 166,

A company may hold its first annual general meeting within a period of not more than eighteen months from the date of its incorporation ;

Hence, in your case, the accounts of the company can be audited for a period of 1 year 25 days, but the AGM has to be convened by 6th September, 2014.