Change in Financial Year of the Company
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.
Where a holding company or a subsidiary or associate company of a company incorporated outside India requires to follow a different financial year for consolidation of its accounts outside India, the Central Government may, on an application made by that company or body corporate in such form and manner as may be prescribed, allow any period as its financial year, whether or not that period is a year.
MANDATORY REQUIREMENTS FOR CHANGE IN FINANCIAL YEAR
1. Only a Company which is a holding or subsidiary or associate company shall apply for change in financial year to consolidate the accounts with their Parent Foreign Company.
2. Approval required of the Concerned Regional Director for the Change in the Financial Year of the Company.
PROCEDURE FOR CHANGE IN FINANCIAL YEAR IS AS FOLLOWS
1. Holding of Board Meeting for passingthe requisite Board Resolution with respect to Change in the Financial Year and authorize Company Secretary or any Director to sign and file the relevant form with Registrar of Companies/Regional Director and to do such acts, deeds and things as may be necessary to give effect to the Board’s decision.
2. Filing ofapplication for approval of concerned Regional Director in e-Form RD-1. Documents that shall be accompanied by the form are:
i. Grounds and reasons for the application
ii. A copy of the minutes of the board meeting at which the resolution authorizingsuch change was passed.
iii. Power of Attorney or Memorandum of Appearance, as the case may be
iv. Details of any previous application made within last five years for change in financial year and outcome thereof along with copy of order.
v. Any other document as may be required.
In case where the application is found to be in order, Regional Director shall allow and convey the order within thirty days from the date of application or within thirty days from the date of last submission, as the case may be.
3. The order conveyed by the Regional Director shall be filed by the company with the Registrar in Form INC-28 within thirty days from the date of receipt of the order along with prescribed fee.
Taxcellent will guide, advise and help you in drafting application and making submission for change in financial year of the Company.