Is it mandatory to have audited balance sheet for a newly formed private limited company?
A private limited company is the most popular form of starting a business, there are various compliances which are required to be followed once a private limited company is incorporated including getting the balance sheet audited by the statutory auditors of the Company.
Every newly formed private limited company is required to appoint first statutory auditors of the Company, within 30 days of incorporation and in case of failure of the board to appoint such auditor, it shall inform the members of the Company who shall within 90 days at an extraordinary general meeting appoint such statutory auditor who shall hold the office till the conclusion of the first annual general meeting.
Every private limited company is required to file its balance sheet along with a statement of profit and loss account and director report within 30 days of holding of the annual general meeting.
Thus it is mandatory for every newly incorporated company to get its balance sheet audited and hold its first AGM within nine months from the closure of the financial year of the company and thereafter within six months from the closure of the financial year of the company.