IN RE Vs. LINXSMART TECHNOLOGIES PRIVATE LIMITED

JUDGEMENT

(1.) The Petitioner Company was incorporated on 04.03.2008 and has its Registered Office at 366, Gali Sheikh Ranjha, Opp. Phatak Namak, Inside Ajmeri Gate, New Delhi-110006. The applicant is a subsidiary of Emperium Business Solutions India Private Limited (the Indian holding Company) which holds 99.99% of the paid up capital in the applicant. The applicant and the Indian Holding Company being group companies, are indirect subsidiaries of WPP Jubilee Limited (the Foreign Holding Company), a foreign body corporate registered in the UK and the accounts of the Indian Holding Company including that of the Applicant are consolidated with the accounts of the Foreign Holding Company.

(2.) The financial year followed by the principal holding company based in UK is stated to be as per the calendar year, i.e from 1st January to 31st December. Vide the present petition, the applicant prays for permission to follow the same financial year i.e from 1st January to 31st December. This would be in keeping with the financial year adopted by its parent Company M/s. WPP Jubilee Limited. The aligning of the applicant's financial year with the parent company would streamline and facilitate the preparation of the consolidated financial Statements.

(3.) The prayer of the petitioner, (being a subsidiary of a company incorporated outside India), for adopting a different financial year vis-a-vis as mandated under Section 2(41) of the Companies Act, 2013 merits consideration and is permissible under the proviso of the aforesaid section in the circumstances as stated above.