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The Tax Publishers Provisions of Clause (41) of Section 2 of the Companies Act, 2013 : The Way Forward Pragya Lalwani Since the commencement of the Companies Act, 2013, provisions of such Act have been amended a number of times. Companies (Amendment) Ordinance, 2018 apart from others brought a drastic change to the provisions of section 2(41), as the power to dispose of the application for change of financial year has been vested with the Central Government which was earlier vested upon the NCLT. This Article also enshrines the procedure for obtaining approval of the Central Government in that regard. 1. Introduction One of the most prominent legal reforms in India is the passing of Companies Act, 2013. Stakeholders took some time to gulp the unleashed provisions though faced several difficulties in the process of implementing the new Act. With an object to ease of doing business in India, Government considered the representations made to it from time to time by several stakeholders, addressing their grievances. The Ministry of Corporate Affairs, thus, from time to time introduces amendments as required. Certain urgent amendments were made through the Companies (Amendment) Act, 2015, the Companies (Amendment) Act, 2017 and recently the Companies (Amendment) Ordinance, 2018 has been brought in instantly. This Article limelights the amendments made in so far under the provisions of clause (41) of section 2 of the Companies Act, 2013. 2. Financial Year--Connotation of Section 2(41) expresses the term 'financial year' with respect to any company or body corporate. Accordingly, 'financial year' in relation to a company or body corporate means the period ending on the 31st day of March every year and where it has been incorporated on or after the 1st day of January of a year, the period ending on the 31st day of March of the following year, in respect whereof financial statement of the body corporate or company is made up. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Provisions of Clause (41) of Section 2 of the Companies Act, 2013 : The Way Forward

Pragya Lalwani

Since the commencement of the Companies Act, 2013, provisions of such Act have been amended a number of times. Companies (Amendment) Ordinance, 2018 apart from others brought a drastic change to the provisions of section 2(41), as the power to dispose of the application for change of financial year has been vested with the Central Government which was earlier vested upon the NCLT. This Article also enshrines the procedure for obtaining approval of the Central Government in that regard.

1. Introduction

One of the most prominent legal reforms in India is the passing of Companies Act, 2013. Stakeholders took some time to gulp the unleashed provisions though faced several difficulties in the process of implementing the new Act. With an object to ease of doing business in India, Government considered the representations made to it from time to time by several stakeholders, addressing their grievances. The Ministry of Corporate Affairs, thus, from time to time introduces amendments as required. Certain urgent amendments were made through the Companies (Amendment) Act, 2015, the Companies (Amendment) Act, 2017 and recently the Companies (Amendment) Ordinance, 2018 has been brought in instantly. This Article limelights the amendments made in so far under the provisions of clause (41) of section 2 of the Companies Act, 2013.

2. Financial Year--Connotation of

Section 2(41) expresses the term 'financial year' with respect to any company or body corporate. Accordingly, 'financial year' in relation to a company or body corporate means the period ending on the 31st day of March every year and where it has been incorporated on or after the 1st day of January of a year, the period ending on the 31st day of March of the following year, in respect whereof financial statement of the body corporate or company is made up.