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Fianancial year

NIDHI KAPOOR (sxacacac) (82 Points)

10 November 2014

Dear All,

A company incorporated in January 2014 , what will be its first first fianancial year ending.

Is it 31st March, 2014 or 31st March, 2015 ?

regards

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5 Replies

Anand R. Kalvinkar (Accounts Manager) (27 Points)
Replied 10 November 2014

It will be March,2014

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CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 10 November 2014

its on you.. first financial year can b may 15 ... because first financial year for a new formed company can extend upto 15 months also

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jagannath (ca pcc) (21 Points)
Replied 10 November 2014

According to ca act it is upto d 31 St March of d following yr ie 31/03/2015

RACHANA DAGA (CS) (555 Points)
Replied 12 November 2014

Section 2 subsection (41) “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 from such commencement,
align its financial year as per the provisions of this clause;

Therfore it will be 31st March 2015.

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 13 November 2014

The company has been incorporated in Jan 2014 under Companies Act 1956 (i.e. when CA 2013 was not in force). As per CA 1956 the Board could decide its first financial year which could be of 15 months also. Hence the year could end either on 31/3/2014 or 31/3/2015.

Second proviso to Sec.2(41) of CA 2013 also clearly provides that existing companies will align their financial year as per the new Act within 2 years.