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Extension of financial year

Vani.A (CS) (168 Points)

12 February 2016

Dear Friends, Can we extend our financial year from 12 to 15 months. Kindly advise. Thanks in Advance

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JOJY THOMAS (CHARTERED ACCOUNTANT) (295 Points)
Replied 13 February 2016

“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 fromsuch commencement, align its financial year as per the provisions of this clause;“

Tribunal” means the National Company Law Tribunal constituted under
section 408 of the Companies act 2013