First AGM First Balance Sheet

For this section 166 read with section 210 are to be complied with. Accordingly, section 166 provideds that a company may hold its First Annual General Meeting within 18 months of its  incorporation.

Section 210 provides that the company must lay its balance sheet and profit and loss account  for the period which shall not exceed in case of first AGM to the period from the incorporation of Company and ending with a day which shall not precede the day of the meeting which shall not precede more than nine months.

Thus PAL account can be made from date of incorporation to ending with a day which shall not precede the day of the meeting which shall not precede more than nine months.

But relevant sections here is 210 (4) which states that “The period to which the account aforesaid relates is referred to in this Act as a "financial year"; and it shall not exceed fifteen months”

Thus effectively speaking if u are incorporating a company In Jan Feb or Mar then u can have leverage to have extended PAL uptill next Mar. But in case u have incorporated a company in Dec or before then you will have to make a balance sheet of 31^st Mar as if u go for next 31^st Mar you won’t be able to meet the requirement of 210 (4).