Smriti Co. Ltd is an associate of Smriti Co Inc, a Malaysian company. The Indian company has April-March financial year. The Malaysian company has the calendar year as financial year, from the inception. The Malaysian co

In the present case Smiriti & Co. Ltd. is an Indian company which is an associate of a Malaysian company. Malaysian company has calendar year as financial year for its accounts. Malaysian company advises Indian company to follow the same financial year as the Malaysian company. Section 2(41) of the Companies Act, 2013 provides in its proviso that a company or body corporate, which is a holding company, or a subsidiary company or associate company of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, the Central Government may, on an application made by that company or body corporate in such form and manner as prescribed, allow any period as its financial year, whether or not that period is a year. Considering that, Smriti Co. Ltd, is the Associate Indian Company of the Smiti Co Inc. (Malaysian Company), Smriti Co. Ltd, is eligible to apply to the Central Government under Section 2(41) of the Companies Act, 2013, requesting permission to change its financial year so as to align with its Malaysian counterpart and follow calendar year as its financial year.