Appropriation of profits.

Corporate1960195 sections

Statutory text

(1) A society earning profit shall calculate the net profit by deducting from the gross profits for the year following:-
- (a) all overdue interest accrued on loan accounts.
- (b) management charges;
- (c) interest payable on loans and deposits;
- (d) audit fee;
- (e) working expenses, including repairs, rent, taxes;
- (f) depreciation;
- (g) bonus payable to employees under the Payment of Bonus Act, 1965 (No. 21 of 1965);
- (h) provision for payment of income-tax;
  - (i) provision for payment of subscription to the State/District Co-operative Union as may be notified;
- (j) provision for development fund, bad debt fund, price fluctuation fund, dividend equalisation fund, investment fluctuation fund and such other funds as may be specified by the Registrar in this behalf;
- (k) provision for retirement benefits to employees and in the case of societies engaged in consumer goods business, provision for purchase rebate to be paid to the members; and
- (l) provision for writing off bad debts and losses not adjusted against any fund created out of profits.
(2) A society may, however, add to the net profits of the year, interest accrued in the preceding year but actually recovered during the year; the net profit thus arrived at, together with the amount of the profits brought forward from the previous year, shall be available for appropriation for the purposes of section 43.

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