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Date on which first balance sheet to be prepared for newly incorporated company

Open uri20170510 32134 1ue0f38?1494421710 asked

If a company has been incorporated on 24th February 2014, then what are the legal compliances for instances, holding AGMs, Board Meetings, etc. Further, as on which date the Company shall prepare its first financial statement?

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

According to the companies act 2013, a company has to hold its agm at any time after the end of Financial year(31st march) but before 6 months from end of financial year (30th september) every year, in case the company didn't hold its agm till 30th september penal provision is attracted towards compnay In case of board meeting, company have to hold 1 board meeting in every quarter, that count to 4 board meeting in 1 financial year and there could be a maximum gap of 60 days between 2 board meeting The company have to put their financial statement in every agm towards their shareholder.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

In my view, as per CA, 2013, if company is incorporated during Jan-Mar of any year, say Feb-2015, its first financial year should close on 31/03/2016 (read section 2(41) of CA, 2013). And so, its first AGM can be hold up to 31/12/2016 (read section 96(1) of the CA, 2013). Its next FY should be from 01-04-2016 to 31/03/2017 and next (2nd) AGM should be by 30/09/2017.

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TCS commented about 4 years ago

In my point of view the provisions in both the acts contradicts each other. Because As per IT Act you have to file ITR for year ended on March 2015 and March 2016 separately and Audit of of Both Years should also be done. Only Annual Filing to be done for 14 Months ending March 2016.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Hi rohit, According to the companies act 2013, a company has to hold its agm at any time after the end of Financial year(31st march) but before 6 months from end of financial year (30th september) every year, in case the company didn't hold its agm till 30th september penal provision is attracted towards compnay In case of board meeting, company have to hold 1 board meeting in every quarter, that count to 4 board meeting in 1 financial year and there could be a maximum gap of 60 days between 2 board meeting The company have to put their financial statement in every agm towards their shareholder. Financial statement are to prepared and audited by a FCA prior to the date of AGM

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Key provisions regarding holding AGM: 1. AGM should be held once every year. *2. First AGM of the co. should be held within 9 months from closing of first financial year. Hence it is not necessary for a co. to hold any AGM in the year of its incorporation.* 3. Subsequent AGM shall be held within a period of 6 months from the closure of Financial Year. 4. The gap between 2 AGMs shall not exceed 15 months. Hence, in given case, the company can hold its first AGM upto 31st December 2015(i.e. 9 months from end of its first financial year-provisions regarding first financial year has been mentioned in the following points of the answer). There are some extension provisions as well, but the same are not allowed in case of first AGM. Provisions regarding Board Meeting: 1.A co. must hold its first Board Meeting (BM) within 30 days of its incorporation. 2. Subsequently, every co. must hold 4 MBs in a year (C.A. '13 consider 1st jan- 31st Dec as a yr. in case of BMs). 3. Max. gap cannot exceed 120 days between 2 BMs. 4. C.A.2013 has also laid down that BMs can validly be held by way of Video Conferencing. 5. At least 7 days notice is required (a shorter notice is also valid under certain circumstances ). Provision regarding first Financial Statement: As per the provisions of Companies Act 2013, it clearly states that where a company has been* incorporated after the 1st day January of any year, the period ending on the 31st day of March of the following year shall be the first accounting year* in respect whereof the financial statement of a company or body corporate is made up. Hence in the given case, the company is required to prepare its first financial statement on 31st March,2015. For any other query, please feel free to contact. Regards,

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Open uri20170510 32134 117xyds?1494421825 answered

hello as the name suggests an AGM must ordinarily be held by every company in each calendar year; special rules apply, during the calendar year in which a company is incorporated and in the following calendar year. What is important as regards those two years is that the first AGM be held within 18 months after the company is incorporated. This means, a company is incorporated on feb 2014, there is no need for an AGM in 2014. provided the first AGM is duly held on or before july 2015.. afte the first general meeting company should take in each calender year and it should not be longer than 15 month. it means the deffence between the annual general meeting should not be more than 15 months the financial statement of the comapny have to be prepared from the date of incorporation till year end date of the financial year which may not be 12 months. the maximum period of financial year can be fifiteen months with the permission of the ROC. and it can be extended to eighteen months legal complience will be the appointment of auditor,allotment of securities, other registrations,filing of e-form with registrar of co etc.

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