Amendment status not verified — confirm the current text below against the official source.
(1) A society earning profit shall calculate the net profits by deducting from the gross profits for the year, all interest accrued and accruing in accounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation and after providing for or writing off bad debts and losses not adjusted against any fund created out of profits. A society may, however, add to the net profits for the year, interest accrued in the preceding years, but actually recovered during the year. The net profits thus arrived at, together with the amount of profits brought forward from the previous year, shall be available for appropriation, (2) A society may appropriate its net profits to the reserve fund or any other fund, to payment of dividends to members on their shares, to the contribution to the educational fund as may be prescribed, to the payment of bonus on the basis of support received from members and persons who are not members to its business to payment of honoraria, and to any other purpose which may be specified in the rules or bye-laws ; Provisions of this chapter to override other laws Funds not to be divided among members Appropriation of profits 32 Provided that no part of the net profits shall be appropriate except with the approval of the general body of members in annual general meeting and in conformity with the Act, rules and bye-laws.