interpretation of section 2(42)

Financial Year In India Starts from 1st April Every Year which ends on 31st March following year,Unless otherwise any company which is a subsidiary or associate of any Co. incorporated outside India,Which requires alignment of its FY with That of foreign holding then after approval of RD it can change its FY.

In the context of companies act, if you carefully read Relevant section of FY, it Coorleate FY with Its Incorpraation..... Hence the First FY end on the YEAR following it's date of incorporation...

For example - If a Co. Incorprated on 31st December 2018, First FY will end on 31-3-19.

If it's Registered on 1st Jan '19 then First FY will end on 31-3-20...

Also Note that this provision will not overlap income tax or any other laws provision...

Means my example total no. Of month is right? But in section says that if company incorporate in January month than financial year FOLLOWING year. Than 14 total no. Of month if in May incorporate than 11 months. So check it?

Suppose company incorporate on 1 Jan '19 then First FY shall end on 31-3-20 ,And the period ( In Months) shall be 15 Months

If It Incorporated on 1 May '18 then fy shall end on 31-3-19 Ie. (11 Months) ....

And this definition is relevant for roc annual filing, And holding of AGM, it's not mandatory in nature... That company need to hold it's FIRST agm within 9 Months from the end of FY...

because this definition gives exception to the Holding Of AGM regulations... Which is one AGM in every calendar year..

Ok thank you chirag. Please clarify me in residence director proportionately days stay in financial year. Proviso of Section 149(3) of company act 2013

For First FY, it will be aligned in proportion to the period of FY of Company... And after that from 1-04 to 31-03 each FY.

For eg.Xyz put ltd incorprted on 31-12-18 ,then first fy ends on 31-3-19 ,Now logically you can understand how it's possible to comply with 182 days requriements? because total period of first fy itself is 90 days ,So director if anyone stays in these 3 months for at least 45 days shall comply with requirement of sec.149(3) . .

when company incorporate on 1-1-19 then first fy shall end on 31-3-20 and here it shall be 182 days on whole FY 1-1-19 TO 31-3-20 to be complied...