Different financial year of Company
Query: I have a query my client is following financial year as Nov 2012 to Oct 2013. For complying with sec 2 (41) of companies act 2013, we are revising financial year from Nov 2013 to Dec 2014. We have not passed any BR to that effect till now.
I would like to ask what is the last date to show the BR passed to effect this?
Answer: There is no last date prescribed as such in the Companies Act 2013 for passing any BR for changing the financial year of Company.
Second proviso to Section 2(41) of the Companies Act 2013 provides 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.
So, we may interpret that Companies following different financial year other than 1 April – 31 March are required to follow this financial year as prescribed under section 2(41) of the Companies Act 2013 within a period of two years from the Commencement of this Act, i.e., April 2014.