CHANGE IN FINANCIAL YEAR

Company follows a financial year of April to March or of January to December, which is decided either by the articles of association of the Company or by directors in the first board meeting by passing a board resolution. After once fixing the financial year of the Company the Board may afterwards decide to change the financial year due to various financial, legal or business reasons. Say the Company is following the financial year of January to December and now it is willing to change it to April to March, what shall be the procedure for doing it?

For such a change in financial year the Board must pass a resolution and inform the stock exchange about such a change in the financial year of the Company in case of listed company and  the company may at its own intimate ROC about it, though no such intimation to ROC has been specified in the Companies Act, 1956.

FORMAT OF BOARD RESOLUTION FOR CHANGE IN FINANCIAL YEAR:

"RESOLVED THAT pursuant to the provisions of Section 210 and other applicable provisions of the Companies Act, 1956 if any the financial year of the company starting from January 1, 2012 to December 31, 2012 (12 months) be and is hereby extended by additional three months comprising to 15 months period ending March 31, 2013.

RESOLVED FURTHER THAT the next financial year i.e. 2013-14 of the company shall be from 1st April 2013 to 31^st March, 2014 and thereafter same shall be followed.

RESOLVED FURTHER THAT Mr. AB, Director be and is hereby authorised to inform the stock exchange and to do all acts, deeds and things and to take all steps and give such directions as may be necessary that may arise in such manner as the Board in its absolute discretion may deem fit."

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