Rajeswara Rao Vittanala, Member - (1.) The Present Company Application bearing CA No. 146/2(41 ) /HDB/2017is filed by M/s. Quisk India Private Limited, under Section 2(41) of the Companies Act 2013, by praying the Tribunal to allow the Petitioner Company to adopt the period from 7th March, 2017 to 31st December, 2017 as its first financial year and thereafter, to adopt as its second and subsequent financial years, the period comprising of 12 months from 1st January of a calendar year to 31st December of the same calendar year to in order to enable consolidation of accounts of the Petitioner Company with those of its Holding Company i.e. Quisk Inc.
(2.) Brief facts of the case, as mentioned in the application, are as follows: a) M/s. Quisk India Private Limited (Hereinafter referred to as the Company) is a Private Limited Company incorporated on 07th March 2017 under the Companies Act, 2013 in the state of Telangana bearing CIN: U74999TG2017FTC115709. Its registered office is situated at 2nd Floor, Plot No. 19, 20, 28 & 29, Srinivasanagar Colony Bandlaguda Village Uppal, Hyderabad 500068 Telangana, India. Its authorized share capital is Rs. 50,00,000/-(Rupees Fifty Lakhs only) divided into 5,00,000 (Five Lakhs only) Equity shares of Rs.10/-(Rupees Ten Only) each and issued, subscribed and paid-up capital of the Company is Rs. 10,00,000/-(Ten Lakhs only) divided into 1,00,000 (One Lac only) equity shares of Rs.10/-(Rupees Ten Only) each. It is a Subsidiary of M/s. Quick Inc. ("Holding Company") (Formerly known as MOBIbucks Corporation) incorporated and registered under the laws of United State of America, Delaware State and having company Registration No. 4940957. The registered office of the holding company is situated at 1183 Boradeaux, Ste 27, Sunnyvale, CA 94089 USA. b) As per the provisions Section 2 (41) of the Companies Act, 2013, every company have its financial year from April to March and any company which is the subsidiary company of a company outside India and is required to follow a different financial year for consolidation of its accounts outside India has to make the application to the Tribunal for obtaining prior approval. c) Since the Holding Company is following 1st January to 31st December as their financial year and the Company is required to maintain accounts and close its financials as on 31st December every year in order to maintain uniformity in preparation of accounts and consolidate the accounts with the Holding Company. Therefore, the Board of Directors of the Company passed a resolution in their Board meeting held on 16 June, 2017 to file an application before this Bench seeking approval to change its 1st Financial Year to the period from 7th March 2017 to 31st December 2017 and the second and subsequent financial years to the period comprising of 12 months commencing on 1st January of a calendar year to 31st December of the same calendar year, in order to align the financial year of the Company with the financial year of Holding Company. d) The Company has also obtained consent from its Holding Company vide its letter dated 16th June 2016 to adopt its financial year the period beginning from January 1st of a calendar year and ending on 31st December of the same calendar year. Hence this Petition.
(3.) The Registrar of Companies, Hyderabad filed his Report No. ROCH/Legal/Sec2(41) /QIPL/STA(CK) / 2017/2623 dated 27.11.2017, by interalia stating that the present financial year of the Company is 1st April to 31st March, and that of the holding company is 1st January to 31 December. As per the provisions of Section 2(41) of the Companies Act, 2013, every company shall have its financial year starting from 1st April and ends by 31st March. However, in case, its parent company, and the company which is a subsidiary of foreign company, it can have different financial year with the approval of this Tribunal. It is therefore submitted that the Tribunal can consider the Application.;