NOTE ON FINANCIAL YEAR AND HOW TO CHANGE IT
{Section 2(41) of the
Companies Act, 2013}
Effective from 1st April, 2014
DEFINITION
1.
Section 2 (11) of Companies Act, 2013, “Body Corporate" or "Corporation"
includes a company incorporated outside India, but does not include—
i.
a co-operative society registered under any law
relating to co-operative societies; and
ii.
any other body corporate (not being a company as
defined in this Act), which the Central Government may, by notification,
specify in this behalf;
2. Section
2 (20) of Companies Act, 2013, "Company" means a company incorporated under this Act or under any previous
company law.
3. Section
2 (41) of Companies Act, 2013, Financial
year, in relation to any company or body corporate, means the period ending
on the 31st day of March every year, and where it has been incorporated on or
after the 1st day of January of a year, the period ending on the 31st day of
March of the following year, in respect whereof financial statement of the
company or body corporate is made up.
Provided that on an application made by a
company or body corporate, which is a holding company or a subsidiary of a
company incorporated outside India and is required to follow a different
financial year for consolidation of its accounts outside India, the Tribunal may, if
it is satisfied, allow any period as its financial year, whether or not that
period is a year.
Provided
further that a company or
body corporate, existing on the commencement of this Act, shall, within a
period of two years from such commencement, align its financial year as per the
provisions of this clause.
INTRODUCTION
As per
the definition of financial year,
1.
Every company is required to follow uniform financial
year that is 1st April to 31st March. In the current
scenario, the Companies are using different-different financial year, some are
using Calendar year that is 1st January to 31st December,
some are using fiscal year that is 1st April to 31st
March and some are using different period to consolidate its accounts.
2.
If a company incorporated on or after 1st
January, 2017, no need to close financial in year 2017, it can be closed next
year i.e. 31st March, 2018. Means first financial year can be of
maximum 15 Months.
3.
Please note that
a company or body corporate, existing on the commencement of this Act, shall,
within a period of two years from such commencement, align its financial year
as per the provisions of this clause.
APPLICATION FOR CHANGE IN FINANCIAL YEAR
If a
holding company or a subsidiary of the company incorporated outside India or
body corporate wants to follow different financial year for the consolidation
of its accounts, may file an application to the Tribunal to change in financial
year and if the Tribunal satisfied,
it may allow any period as its financial year, whether or not that period is a
year.
Before
filing the application to NCLT, pass the Board resolution to change financial
year and also appoint a professional to represent the company before the NCLT.
As per section 432 of the Companies
Act, 2013, A party to any proceeding or appeal before the Tribunal or Appellate
Tribunal, as the case may be, may either appear in person or authorise one or
more Chartered Accountants or Company Secretaries or Cost Accountants or legal
practitioners or any other person to present his case before the Tribunal or
the Appellate Tribunal, as the case may be.
As
per rule 67 of the NCLT Rules, 2016, the Petition shall be filed in form NCLT-1
along with the fee and along with the following attachments:
1. Copy
of MOA and AOA
2. Copy
of Balance sheet of Companies
3. Affidavit
verifying the petition in form NCLT-6
4. Bank
Draft evidencing payment of application fee
5. Memorandum
of appearance in Form NCLT-12 with copy of the Board resolution or the executed
Vakalatnama, as the case may be
6. Other
documents, if any.
The
order of NCLT shall be filed to ROC in the e-form INC-28 along with the fees
and within the prescribed time.
Contact Details:
VISHAL SHARMA
Company Secretary
Mob: 9716763754
Email: csvishalpbs@gmail.com
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http://csvishalsharma.blogspot.in/
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Disclaimer: The Content is prepared on the basis of our general understanding and on the basis of relevant provision of Companies Act, 2013 read with rules made there under. The whole content is only for the knowledge sharing purpose, we do not take any responsibility for the correctness of the same.
Disclaimer: The Content is prepared on the basis of our general understanding and on the basis of relevant provision of Companies Act, 2013 read with rules made there under. The whole content is only for the knowledge sharing purpose, we do not take any responsibility for the correctness of the same.
So nice information! thanks for it! Looks I am providing all the company's info like overseas company information
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