Article explains Definition of Financial Year as provided in Section 2(41) of the Companies Act, 2013. It further explains how to make Application for change of Financial Year to Regional Director in Form RD-1 for approval under section 2(41) along with prescribed fees. It also explain Details to be mentioned in form RD-1 and Form RD GNL-5.
|1||Definition of Financial Year||1. Section 2(41) of the Companies Act, 2013 specify the definition of Financial year of a Company/Body Corporate.
2. Financial year means the period ending on 31st of March of every year, or
3. In case if company/Body corporate has been incorporate on or after 1st January of a year, the financial year ending on 31st March of that year I.e from January to March shall be the financial year in respect of the financial statement of the Company/ Body Corporate is prepared.
|2||1st Proviso of section 2(41)||In case if any company/body corporate which is holding , subsidiary or associate company of a company incorporated outside India and required to follow a different financial year for Consolidation of Accounts outside India, then in such case Company/Body corporate shall make an application to CG to allow any period as its Financial Year.|
|3||2nd Proviso of Section 2(41)||Any application for use of different financial year before the implementation of Companies (Amendment) Ordinance, 2019 shall be disposed of by the Tribunal in accordance with the previous provisions before the Ordinance.|
|4||3rd Proviso of Section 2(41)||Any company incorporated under previous law/ before commencement of the Act, shall within a period of 2 years from such commencement, align its financial year as per the provisions of this clause;|
|5||Application for change in F.Y||1. Application to RD
Company/Body Corporate shall made an application to Regional Director in Form RD-1 for approval under section 2(41) along with prescribed fees.
2. Annexure to an application i.e Form RD-1
i. Basis and Reasons of the application for Change of F.Y.
II. Minutes of the B.M at which resolution for making application for change of financial year was passed,
iii. POA or MOA as the case may be,
iv. Details of any last change in Financial year in the 5 preceding years along with the copy of order,
3. Power of RD
i. call for further information in case if he finds the application to be defective or incomplete,
ii. he can direct the person or the company to furnish such information, or to rectify defects or incompleteness,
iii. he can direct to re-submit application within 15 days, in form RD-GNL-5,
iv. Maximum two resubmission shall be allowed otherwise the application shall be rejected.
4. case where application can be rejected;
in case where in the satisfaction of RD, the information called for has not been provided, default or incompleteness has not been rectified within the time period allowed, the RD shall reject the application within 30 days from the filling of Application or within 30 days from the date of last resubmission;
5. Order of RD
In case where an application are in order to the satisfaction of RD then he shall passed the order within 30 days from the date of filling the application with the RD or within 30 days of its last resubmission.
ii. where no rejection or approval or resubmission has been explicitly made by the RD within the stipulated Time period then it shall be deemed that the application stands approved and approval order shall be automatically issued.
6. Filling of Order to ROC
The company shall filed the order in Form INC-28 to the ROC with 30 days from the date of receipt of the order.
|6||Details to be mentioned in form RD-1||1. CIN
2. Name of the Company
3. Registered Office Address
4. Purpose of Application i.e change in financial year
5. Details of passing of resolution
6. Proper details of application in brief
|7||Details to be mentioned in Form RD GNL-5||1. SRN of the form RD 1 then prefill
2. Details of the defects points out or further information called by the RD
3. Details of rectification of the defects or further information furnished,
4. Relevant documents attached.