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Changing Financial year for consolidation purpose in foreign company chapter

07 November 2023 As per Companies Act, 2013 a company which is a holding or subsidiary or associate of a company incorporated outside India may be required to follow a different financial year for consolidation of its accounts and may apply to Central Government who may allow any period as Financial year whether or not the period is a year. (From ICAI material)
My questions are:

1) Why will an associate company need to consolidate its FS with another company?
2) Why will the Holding company(Foreign company) in India need to follow a financial for its subsidiary outside India? Doesn't the subsidiary always follow the holding company?
2) What is meant by "any period" is taken as a financial year? Will even few months be taken as a year? If so, can any date be the balance sheet date? If an example of this is provided it will really help me .

Thank you .

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