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Procedure for extension of financial year under CA 2013

Meaning of Financial Year

As per Section 2(41), financial year in relation to a 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.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. Procedure for extension of financial year under CA 2013 is laid down in the companies act 2013.

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.

Every company is obliged to start the financial year from 1^st April and close at 31^st March of the said year comprising of 12 months except holding or subsidiary companies 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.

Can every Company change its financial year under Companies Act, 2013?

No, not every company can apply for extension or change in financial year of the Company. Only a Company or a 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 consolidation of its accounts outside India, can approach Tribunal for change in financial year.

Procedure for extension of financial year under CA 2013

Any Company or a body corporate which is a holding company or a subsidiary of a Company incorporated outside India can apply for extension of financial year with the NCLT i.e National Company Law Tribunal. Following is the Procedure for extension of financial year under CA 2013.

1. Change in financial year of the Company

2. Authorization to the Company Secretary in practice for appearance before NCLT.

3.Memorandum of Appearance to be executed for appearance before NCLT-12

Step 2: Application to be made to NCLT

1. Application to NCLT shall be made to NCLT in Form NCLT-1 for Extension or change of financial year.

The application shall contain all details as given in Annexure-B as under-

(i) Copy of Memorandum and Articles of Association.

(ii) Copy of balance sheet of the Companies.

(iii) Affidavit verifying the petition.

(iv) Bank draft evidencing payment of application fee.

(v) Memorandum of appearance with copy of the Board’s Resolution or the executed vakalatnama, as the case may be.

2. The petition made to Form NCLT-1 shall include-

(i)  Details of Original Application

(ii)  Jurisdiction of the Bench

(iii)  Limitation: (If applicable)

(iv)  Facts of the case are given below

(v)   Relief(s) sought.

(vi)  Particulars of Bank raft evidencing payment of fee for the petition.

(vii)  Memorandum of appearance

Step 3: Order of Tribunal

3. Once the tribunal pass an order for change in financial Year, the same had to be filed in form INC-28 within 30 days from the date of receipt of order.

Drafts and formats 

PETITION FORMAT

FORM NO. NCLT. 1

General Heading for Proceedings

Before the National Company Law Tribunal,

Bench, at ________

In the mater of the Companies Act, 2013

 And 

In the matter of …… Ltd: (XYZ Pvt Ltd)

Columns required for filing of Original Application/ Reply / Rejoinder / Interlocutory Application or filing of additional documents under directions of the Bench

1. Details of Original Application / Reply / Rejoinder/ Interlocutory Application

Particulars of the Petitioner / Applicant / Respondent and state whether company, whether petitioner or not.

(Name, description, father’s / husband’s name, occupation, capacity, i.e. quashareholder, qua depositor and address)

1. Jurisdiction of the Bench:

The petitioner declares that the subject-matter of the petition is within the jurisdiction of the Bench

iii. Limitation: (If applicable)

The petitioner / applicant further declares that the petition is within the limitation laid down in section ……. of the Companies Act, 2013 (where applicable)

1. Facts of the case are given below:

(Concise statement of facts in a chronological order, each paragraph containing as nearly as possible a separate issue, fact or otherwise.)

1. Relief(s) sought.

In view of the facts mentioned above, the petitioner/applicant / respondent prays for the following relief(s):

(Specify below the relief(s) sought explaining the ground for relief(s) and the legal provisions (if any) relied upon)

1. Particulars of Bank draft evidencing payment of fee for the petition or application made:

Branch of the Bank on which drawn:

Name of the issuing branch:

Demand Draft No………

Date…………..

Amount Rs………..

(Signature/Signature of Authorised signatory)

Date:

Place:

FORM NO. NCLT. 12

(see rule 45)

Memorandum of appearance

 To

The Registrar,

National Company Law Tribunal . . . . . . . . . . Bench,

In the matter of . . . . . . . . . . Petitioner.

V.

. . . . . . . . . . Respondent

(C.P. NO . . . . . . . . . . of 20 . . . . . . . . . . )

Sir,

Please take notice that I, AB, Company Secretary in practice/ practising Chartered Accountant/ practising Cost Accountant, duly authorised to enter appearance, and do hereby enter appearance, on behalf of . . . . . . . . . . petitioner/ opposite party/ Registrar/ Regional Director/ Government of . . . . . . . . . . in the above-mentioned petition.

*A copy of the resolution passed by the Board of Directors authorising me to enter appearance and to act for every purpose connected with the proceedings for the said party is enclosed, duly signed by me for identification.

Yours sincerely,

Dated . . . . . . . . . . day of . . . . . . . . . . Address:

Enclosure: as aforesaid

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The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.