Accounts of expenditure and income during construction ‑ Whether to be rendered to shareholders - Companies Law - Letter: No. 2/17/64‑PR,

Letter: No. 2/17/64 ‑ PR, dated 29 ‑ 1-1964. Subject:- Accounts of expenditure and income during construction ‑ Whether to be rendered to shareholders The intention underlying section 210 is that every company should render to its shareholders an account of its expenditure, and income even though they may have been incurred or received during the period of construction. It is no doubt true that a company does not really commence its business operations till the period of construction is over. There will, of course, be no objection if such account is called Development account , Expenditure during construction account or by any other suitable name so long as these accounts, give details of the revenue expenditure and income during the period covered, in the manner required by Part II of Schedule VI. Sub‑section (3) of section 210 makes it quite clear that it is mandatory for every company to prepare a profit and loss account from the date of its incorporation.