If I start the auto finance lending company on February. There is only 1 month to end of financial year.  In this situation, auditing accounts submission is essential or not?

If it is a Pvt. Limited Company - Statutory Audit is mandatory!

For others - It depends on your turnover

Not mandatory even it is a private company. Please see the relevant provisions from the Act.

As per the Companies Act, a company can hold its first AGM within a period of 9 months from the end of the financial year in which the company is incorporated. This means that if your company is incorporated in February, you can hold your first AGM by December 31st of the same year, instead of the usual 6-month limit.

Additionally, the first financial year of a newly incorporated company can be extended up to 18 months, instead of the usual 12 months. This means that if your company is incorporated in February, you can choose to end your first financial year on March 31st of the following year or even extend it up to August 31st of the following year.

However, it is important to note that while the AGM and financial year deadlines can be extended, the requirement of maintaining accurate books of accounts and financial statements still applies. So, even if your company is eligible for an extension, you must still maintain accurate records and prepare financial statements for the period during which the company was in operation. These records will be used for the purpose of audit once the audit process begins.

In summary, as a newly incorporated company, you have the option to extend the limit of holding your first AGM and the first financial year, but it is important to maintain accurate records and financial statements during the period of operation of the company.