Star Ltd. was incorporated on 1st January, 2016. Further, Star Ltd. has floated its subsidiary company incorporated in Germany for which the financial year ends with June every year. In light to the above, please determi

Section 2 (41) of the Companies Act, 2013 provides that 'financial year', in relation to any 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 company or body corporate is made up. It also provides that on an application made by a company or body corporate, which is a holding company or a subsidiary of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, the Tribunal may, if it is satisfied, allow any period as its financial year, whether or not that period is a year. In the light of the aforesaid provisions: Since, Star Ltd. has a subsidiary incorporated in Germany who has to follow June as the financial year-end, Star Ltd. being the holding company, can make an application to the Tribunal. If the Tribunal is satisfied with the conditions, it will allow Star Ltd. to adopt the financial year ending June, in order to align with its subsidiary for the purpose of consolidation of its accounts outside India.