COMPANIES ACT - 1963 (ACT 179)

    Section - 125 - Profit and Loss Account

    (1) The profit and loss account referred to in paragraph (a) of subsection (1) of section 124 of this Code shall, in the case of the first account since the incorporation of the company, cover the period since the incorporation of the company and, in any other case, cover the period since the preceding account and shall be made up to a date not earlier by more than nine months from the date on which it is to be sent to members and debentureholders pursuant to section 124 of this Code:

    Provided that,

    (a) in the case of an existing company which has not previously prepared a profit and loss account and which was not required under its Regulations to prepare one, the first account need not cover a period commencing earlier than the date of commencement of this Code;

    (b) the Registrar, if for any reason he thinks fit so to do, may extend the aforesaid period of nine months.

    (2) The date to which the profit and loss account is to be made up in accordance with subsection (1) of this section is hereafter in this Code referred to as the end of the company's financial year.

    Fourth Sch. Part I.

    (3) The profit and loss account shall, subject to subsection (5) of section 127 of this Code, relating to consolidated profit and loss accounts,

    (a) give a true and fair view of the profit or loss of the company for the period to which it relates; and

    (b) comply with the requirements of sections 127 to 131 and Part I of the Fourth Schedule to this Code.

    (4) The Registrar may, on the application or with the consent of the company's directors, modify in relation to that company any of the requirements in Part I of the Fourth Schedule to this Code for the purpose of adapting them to the circumstances of the company, but no such modification shall derogate from the obligation imposed by paragraph (a) of subsection (3) of this section to give a true and fair view of the profit or loss of the company.