Section 44ad applicability on firm in our situation

The answer is ‘Yes’ because if we read section 44AD carefully, the audit is required where profits are less than 8% of the gross receipts or turnover and the income exceeds maximum amount not chargeable to tax.
Since, the firm is taxed at an income starting from Rs. one, therefore the maximum amount not chargeable to tax is nil.
In case of loss, since there is no income, therefore it does not exceed the maximum amount not chargeable to tax and so the second condition mandating tax audit u/s 44AB r/w section 44AD is not satisfied and therefore the assessee is not required to get the accounts audited u/s 44AB.
Therefore, in case of assessees other than companies, professionals, assessees having agency business (Those on whom section 44AD is not applicable) having turnover less than Rs.1 crore and showing loss from business shall not be required to get the accounts audited U/s 44AB if they do not have any other income other than income from eligible business and the due date for such assessees shall be 31st   July of the Assessment Year and not 30thSeptember.
Therefore such assessees should file the return of income by the 31st July of the Assessment Year without audit report as the loss will not be carried forward due to late filing of the Income Tax Return after the due date.