Brahma wakes on a lotus from Vishnu's navel, lost in dark water, and searches the stalk for a hundred years. A voice tells him to practise austerity; Vishnu appears and tells him to make the worlds. The almanacs say he began at sunrise on the first bright day of Chaitra, which is Ugadi.
Between ages Vishnu lies on Shesha on the waters. A lotus rises from his navel and Brahma appears on it, not knowing who he is. He follows the stalk down for a hundred years without finding its root, returns, and hears a voice say tapa, tapa. After a thousand years of austerity Vishnu shows himself and tells him to make the worlds. Brahma divides the lotus into three worlds and creates. The almanac verse places the beginning at sunrise on the first day of the bright half of Chaitra, kept as Ugadi.
Sources: Bhagavata Purana 3.8 to 3.10, Brahma on the lotus (English translation, Vedabase); The verse on Chaitra shukla pratipada as Brahma's day of creation, quoted from Hemadri's Chaturvarga Chintamani (Yugadi essays)