Financial year

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2016 IS IT NECESSARY THAT WE SHOULD FOLLOW, FINANCIAL YEAR AS APRIL TO MARCH OR ACCORDING TO OUR CONVENIENCE, CAN WE CHOOSE IT ? IS THERE IS ANY LEGAL BINDING REGARDING THIS ?

Purnima Parashar

Purnima Parashar (Expert)
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27 January 2016 As per Companies Act, 2013
2(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;

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