Amendment status not verified — confirm the current text below against the official source.
Calculation of net profits.- (1) A society shall calculate the net profits by deducting the following from the gross profits for the year— (i) All interest accrued and accruing on amounts of over due loans (excepting overdue amounts of loans against fixed deposit, gold, etc.); (ii) Interest payable on loans and deposit; (iii) establishment charges; (iv) audit fees or supervision fees; (v) working expenses including repairs, rent and taxes: (vi) depreciation; (vii) bonus payable to employee under the Payment of Bonus Act, 1965; (viii) provision for payment of Income Tax; (ix) amount to be paid for contribution to the Education Fund at the State Federal Society which may be notified by the State Government, in this behalf; (x) amount to be paid for contribution to the Co-operative Cadre Employment Fund; (xi) provision for bad and doubtful debts; (xii) provision for share capital Redemption Fund; (xiii) provision for Investment Fluctuations Fund; (xiv) provision for retirement benefits to the employees; (xv) provisions for any other claims admissible under any other law; (xvi) Provision for bad debts and revenue losses not adjusted against any fund created out of profits. (2) In addition to the sums referred to in sub-rule (1) of this rule, the following sums shall be deducted by a society from its profits:— (i) contribution, if any, to be made, to any sinking fund or guarantee fund, constituted under the provisions of the Act, these rules or bye-laws of the society for ensuring due fulfillment of guarantee given by Government in respect of loans raised by the society. (ii) Provision considered necessary for depreciation in the value of any Security Bonds or Shares held by the society as part of its investments. (3) The net profit thus arrived at together with the amount of profits brought forward from the previous year, shall be available for appropriation.