Dear Learned Members,
XYZ Ltd. is a company incorporated under the Companies Act, 1956. It has a subsidiary named XYZ Private Limited. Pursuant to a Scheme of Demerger u/s 391 to 394 of the Companies Act, 1956 the operational business of XYZ Ltd would get demerged to XYZ Private Limited. All the procedure and filing has been completed and the Company is awaiting the Order by the Hon’ble High Court. Please note that the Appointed date in this Scheme of Demerger is April 1, 2013.
Hence, I would like to ask the learned members that in case the Scheme is not approved by the Hon’ble High Court before 31st March, 2014 then whether the books of accounts of both XYZ Ltd and XYZ Private Limited can be closed as on 31st March, 2014? If the books of accounts cannot be closed, what is the procedure to be followed?
Thanks & Regards,
K.C. Palai
CAclubindia
