Meaning of Financial Year under Companies Act, 2013:
As per Section 2(41), financial year in relation to a 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.
Let’s understand Financial Year under Companies Act, 2013 further with the following FAQs:
Ques 1. Can every Company change its financial year under Companies Act, 2013??
Ans. Under CA, 2013, only a Company or a 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 consolidation of its accounts outside India, can approach Tribunal for change in financial year.
Ques 2. What is the procedure for change in financial year under under Companies Act, 2013??
Ans. Rule 67 of NCLT Rules, 2016 deals with procedural aspects of change in financial year under under Companies Act, 2013. Following are the steps:
1. Hold the Board Meeting and authorize someone to make application under proviso to section 2(41).
2. Make an application to NCLT in for NCLT- 1 together with the required documents. List of required documents are:
(a) Copy of memorandum and articles of association
(b) Copy of balance sheets of the Company
(c) Affidavit verifying the petition
(d) Bank draft evidencing payment of application fees
(e) Memorandum of appearance with copy of the Board resolution or the executed vakalatnama, as the case may be.
3. Once the order is received from the Tribunal, file the copy of order with ROC in e form INC-28, within 30 days of receiving the order.
Format of Board Resolution pursuant to proviso to Section 2(41) of Companies Act, 2013:
“RESOLVED THAT an application be made to National Company Law Tribunal for change in financial year 1st April to 31st March to from…………and ending on………..pursuant to the provisions of proviso to section 2(41) of Companies Act, 2013.
RESOLVED FURTHER THAT and director be and is hereby authorised to sign and make application under proviso to section 2(41) and to do all acts, deeds and things as may be required in this regard.”
Ques 3. What is the prescribed fees for making an application??
Ans. The prescribed fees for making an application u/s 2(41) is Rs. 5,000 as prescribed under schedule of fees.
Author: C S Ekta Maheshwari is the Author of this article and is a Practicing Company Secretary. The Author can be reached at firstname.lastname@example.org for further assistance/query, specimen of forms etc.
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