Penalties for Private Limited Co.

Please note that if the company has not appointed the auditor within one month from the date of incorporation it will be a violation of the provisions of the act and the central govt has the powers under the law to appoint an auditor.

Try to "back date" the appointment of auditor (with the consent of the statutory auditor). Request the auditor to file Form 23B with ROC with "back date of acceptance" of audit.

Assuming your accounting period ends in March, then you will be finalising the accounts from June 2007 (incorporation date) to 31st March 2008. First AGM to be held in the year 2008 wherein accounts will be approved. Create all records carefully. Once you are satisfied that everything is found in order then file the Annual Accounts and Annual Return with ROC (online) with late fees. Please take the assistance of your Auditor as well as a Company Secretary in Whole Time Practice.

with regards

Muralidharan

Thanks

Dear Khushboo,

The Company may be declared as defunct Company.

As the first auditors was not appointed within 1 month of incorporation, Auditors may be appointed in AGM by Shareholders.

As far as filing of documents is concern all can be filed with late fees. The company must appoint Statutory Auditor immediately.

Thank you all