CAN PLEASE ANYONE CAN EXPLAIN ME SEC.210(3)..
ACCORDING TO WHICH ACCOUNTS MUST RELATE TO A PERIOD BEGINNING WITH THE DAY IMMEDIATELY AFTER THE THE PERIOD FOR WHICH THEY WERE SUBMITTED AND ENDING WITH A DAY WHIVH MUST NOT PRECEEDE THE DAY OF MEETING BY MORE THAN 6 MTH AND EXTENSION CAN BE GRANTED BY REGISTRAR IE.MAXIMUM PERIOD OF 9 MTH.
| Originally posted by : patterson thomas | ||
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CAN PLEASE ANYONE CAN EXPLAIN ME SEC.210(3).. ACCORDING TO WHICH ACCOUNTS MUST RELATE TO A PERIOD BEGINNING WITH THE DAY IMMEDIATELY AFTER THE THE PERIOD FOR WHICH THEY WERE SUBMITTED AND ENDING WITH A DAY WHIVH MUST NOT PRECEEDE THE DAY OF MEETING BY MORE THAN 6 MTH AND EXTENSION CAN BE GRANTED BY REGISTRAR IE.MAXIMUM PERIOD OF 9 MTH. |
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Meeting here would mean AGM. This means the gap between the account closing and the AGM date should not be more than 6 months and 9 months if extension is granted by registrar.
Say for example the AGM of a company is held on 30th September, the accounts must relate to the period ending 31st March. On the other hand if the accounts are closed on 31st December, the AGM of the company must be held on or before 30th June, i.e. within 6 months from the close of accounts.
Hope the above is clear to you.
agree with Jayashree answer
This section simply says...
If your last accounts perpared from 1 april 2009 to 31 march 2010, then for the next accounting period should start with 1 apr 2011. You cannot skip any period...
And secondly, the accounts you have prepared should be presented in AGM within 6 month from the end of that relevant period. For eg. if your prepared accounts upto 31 march 2011 then it should be presented in AGM on or before 30th sept. 2011 (not more than 6 months gap)
If you are unable to do that then you can apply to ROC and he will permit you a further period of 3 months. It means he give you the permission to hold AGM on any date upto 31st Dec. 2011 (30th sept. + 3months).
| Originally posted by : Jayashree S Iyer | ||
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Originally posted by : patterson thomas CAN PLEASE ANYONE CAN EXPLAIN ME SEC.210(3).. ACCORDING TO WHICH ACCOUNTS MUST RELATE TO A PERIOD BEGINNING WITH THE DAY IMMEDIATELY AFTER THE THE PERIOD FOR WHICH THEY WERE SUBMITTED AND ENDING WITH A DAY WHIVH MUST NOT PRECEEDE THE DAY OF MEETING BY MORE THAN 6 MTH AND EXTENSION CAN BE GRANTED BY REGISTRAR IE.MAXIMUM PERIOD OF 9 MTH. Meeting here would mean AGM. This means the gap between the account closing and the AGM date should not be more than 6 months and 9 months if extension is granted by registrar. Say for example the AGM of a company is held on 30th September, the accounts must relate to the period ending 31st March. On the other hand if the accounts are closed on 31st December, the AGM of the company must be held on or before 30th June, i.e. within 6 months from the close of accounts. Hope the above is clear to you. |
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Hello Jayshree Ma'm / Other members,
I do agree that within 6 months from accounts closed to have AGM, but with regard to extension period
need some more clarity.
As per Section 210 (3)(b) and Section 210 (4) , states as follows :
(3) The profit and loss account shall relate—
1[(b) in the case of any subsequent annual general meeting of the company, to the period beginning with the day immediately after the period for which the account was last submitted and ending with a day which shall not precede the day of the meeting by more than six months, or in cases where an extension of time has been granted for holding the meeting under the second proviso to sub-section (1) of section 166, by more than six months and the extension so granted.]
(4) The period to which the account aforesaid relates is referred to in this Act as a “financial year”; and it may be less or more than a calendar year, but it shall not exceed fifteen months:
Provided that it may extend to eighteen months where special permission has been granted in that behalf by the Registrar.
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Does this mean
If FY is ending 31st March 2011 -
P/L & B/S for that fy be submitted by
1. 6 Months ( Normally) - 30th Sep 2011 AGM
2. 6 - 15 Months
3. 18 months with special permission of roc.
Experts your valuable advice is appreciated .
regards
Santosh Shah
Dear Santosh,
Accounting period is related to the date of AGM of the Company as specified in Section 210(3). I would explain it with an example.
A company is incorporated on 01.01.2010.
AGM due date is 30th June, 2011 (within 18 months)
Accounting period can be : (1) From 01.01.2010 to 31.03.2011 - (within 9 months of AGM) (ii) From 01.01.2010 to 31.12.2010 - (within 9 months of AGM) (iv) From 01.01.2010 to 30.09.2010 - (within 9 months of AGM)
In case the company wants to close the accounts on 30th June 2010, then AGM of the company should be held before 31st March. Holding the AGM on 30th June 2011, the accounting period cannot be from 01.01.2010 to 30.06.2010 as the gap between the AGM and the accounting period would be more than 9 months.
| Originally posted by : Jayashree S Iyer | ||
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Dear Santosh, Accounting period is related to the date of AGM of the Company as specified in Section 210(3). I would explain it with an example. A company is incorporated on 01.01.2010. AGM due date is 30th June, 2011 (within 18 months) Accounting period can be : (1) From 01.01.2010 to 31.03.2011 - (within 9 months of AGM) (ii) From 01.01.2010 to 31.12.2010 - (within 9 months of AGM) (iv) From 01.01.2010 to 30.09.2010 - (within 9 months of AGM) In case the company wants to close the accounts on 30th June 2010, then AGM of the company should be held before 31st March. Holding the AGM on 30th June 2011, the accounting period cannot be from 01.01.2010 to 30.06.2010 as the gap between the AGM and the accounting period would be more than 9 months. |
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Thank you Jayshree Ma'm for clarifying my doubt with example.
Now its more clear to me.
regards
Santosh Shah
Remind that no extension of 3 Months by Registrar is allowed for First AGM of Company .
| Originally posted by : patterson thomas | ||
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CAN PLEASE ANYONE CAN EXPLAIN ME SEC.210(3).. ACCORDING TO WHICH ACCOUNTS MUST RELATE TO A PERIOD BEGINNING WITH THE DAY IMMEDIATELY AFTER THE THE PERIOD FOR WHICH THEY WERE SUBMITTED AND ENDING WITH A DAY WHIVH MUST NOT PRECEEDE THE DAY OF MEETING BY MORE THAN 6 MTH AND EXTENSION CAN BE GRANTED BY REGISTRAR IE.MAXIMUM PERIOD OF 9 MTH. |
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It means that:-
1. The period of account must be with the immediate next date for which the results were earlier submitted. (for example if submitted for 31/03/2010 to new accounts must began from 01/04/2011)
2. The date of ending must not be preceeded by more than 6 months from the date of AGM.
(for ex if the ending date of accounts is 31/03/2011 then it must be presented in the AGM upto 30th september, 2011)
Therefore, for conducting AGM sections 166 and 210 both are to be taken into consideration.
CAclubindia
