ESS Ltd., a government company was incorporated on 1st June 2018 and appointed first auditor on 15th July 2018. Explain as to whether ESS Ltd. has complied with the provisions of the Companies Act, 2013?

In terms of Section 139(7) of the Companies Act, 2013, in case of a Government Company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government, or Governments, or partly by the Central Government and partly by one or more State Governments, the first auditor shall be appointed by the Comptroller and Auditor General of India within 60 days from the date of registration of the company and in case the Comptroller and Auditor-General of India does not appoint such auditor within the said period, the Board of Directors shall appoint such auditor within the next 30 days; and in the case of failure to do so by the Board of Directors, it shall inform the members, who shall appoint the auditor within 60 days at an extraordinary general meeting (EGM), such auditor shall hold office till conclusion of the first Annual General Meeting of the company. The above provisions shall be applicable to ESS Ltd., as it is a government company and it has appointed its first auditor on July 15, 2018 i.e., well within 60 days from the date of incorporation. Hence, it has duly complied with the applicable provisions of the Companies Act, 2013.