Thursday, September 8, 2016

Subsidiary company can adopt calendar year as its FY for consolidation of accounts


a) Universal Robots (India) Pvt. Ltd., is an Indian Subsidiary of Universal Robots AS, which is registered in Denmark.

b) It had adopted FY ending March 31, 2015as per the requirement of the Companies Act, 2013. Whereas, the holding company followed the calendar year as FY. So, it realised that due to different FY it will be difficult to consolidate its accounts with that of holding company.

c) The Board of Directors of the Universal Robots (India) Pvt. Ltd.passed a resolution to change its FY to calendar year. Holding company also consented for the same. d) It filed petition to get permission to follow calendar year as its FY for consolidation of accounts.

The NCLT held as under:

1) Section 2(41) of the Companies Act, 2013 provides as follows: