Can second or subsequent f.y. of the company be > 12 months?

Dear Collegues,

Can Second or subsequent financial year be more than 12 months upto 15 months as per Section 210(4) of the Companies Act?

As Section 210(4) says that period to which accounts relates is reffered as Financial year and it may be less or more than a calender year, but it shall not exceed 15 months. It does not specify that it is applicable for the first year. i.e for year of incorporation. The text of Setion 210 is as follow:

Section 210

ANNUAL ACCOUNTS AND BALANCE SHEET.

(1) At every annual general meeting of a company held in pursuance of section 166, the Board of

directors of the company shall lay before the company -

(a) a balance sheet as at the end of the period specified in sub-section (3); and

(b) a profit and loss account for that period.

(2) In the case of a company not carrying on business for profit an income and expenditure

account shall be laid before the company at its annual general meeting instead of a profit and

loss account, and all references to "profit and loss account", "profit" and "loss" in this section and

elsewhere in this Act, shall be construed, in relation to such a company, as references

respectively to the "income and expenditure account", "the excess of income over expenditure",

and "the excess of expenditure over income".

(3) The profit and loss account shall relate -

(a) in the case of the first annual general meeting of the company, to the period beginning with

the incorporation of the company and ending with a day which shall not precede the day of the

meeting by more than nine months; and

(b) in the case of any subsequent annual general meting of the company, to the period beginning

with the day immediately after the period for which the account was last submitted and ending

with a day which shall not precede the day of the meeting by more than six months, or in cases

were an extension of time has been granted for holding the meeting under the second proviso to

sub-section (1) of section 166, by more than six months and the extension so granted.

(4) The period to which the account aforesaid relates is referred to in this Act as a "financial year";

and it may be less or more than a calendar year, but it shall not exceed fifteen months :

Provided that it may extend to eighteen months where special permission has been granted in

that behalf by the Registrar.

Regards,

CS Samiksha Kansara