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2017 (2) TMI 700 - Tri - Companies LawRetain of financial year commencing from January 1st ending December 31st every year to align the financial year with its Holding Group of Companies that have been incorporated outside India - Held that:- The holding Company is following the financial year commencing from January 1st ending December 31st every year to maintain uniformity for the purpose of consolidation of its accounts, all over the world. This is being followed in order to maintain symmetry in financial reporting of all affiliates in the Habasit Group and thereby enabling consolidation, reviewing and controlling the financial results of various entities across the globe by the Holding Companies. Therefore, in order to serve the said purpose, the Applicant Company is essentially required to retain the financial year commencing from January 1st ending December 31st every year, so as to align the financial year with its Holding Group of Companies that have been incorporated outside India. The Applicant company has placed on record true copy of the Resolution adopted on December 2015 wherein its Board of Directors has approved for filing application/petition before the Company Law Board for retention of the existing financial year of the Company from January 1st ending December 31st every year, by giving the authority to Mr. Ashok Malhotra, Managing Director, to sign and execute the application. Besides this, the current Balance Sheet placed on record goes to show that the Company has been following the financial year starting January 1st ending December 31st every year for consolidating its accounts with the Holding Company. Thus this Bench is satisfied that the prayer of the Applicant Company is genuine and in exercise of the powers conferred under First Proviso to Sec.2(41) of the Companies Act, 2013, do hereby allow the Applicant company to retain and follow the financial year starting January 1st ending December 31st every year, for consolidation of its accounts with its holding company registered outside India.
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