Section 49A in The Maharashtra Cooperative Societies Rules, 1961
49A. [ Calculation of net profits. [Added by G.N. No. CSL. 1186/134313/132/ISC (i), dated 16.10.1987.]
(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 oh amounts of overdue loans (excepting overdue amounts of loans against fixed deposit, gold, etc.);(ii)interest payable on loans and deposits;(iii)establishment charges;(iv)audit fees or supervision fees;(v)working expenses including repairs, [and maintenance] rent and taxes;(vi)depreciation;(vii)bonus payable to employees under the Payment of Bonus Act, 1965;(viii)provision for payment of Income-tax;(ix)amount to be [earmarked as contribution to the co-operative education and training in terms of fees] [Substituted 'paid as contribution to the Education Fund at the State Federal Society' by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).] which may be notified by the State Government in this behalf;(x)[ provision for Election Fund for payment of election expenses;] [Substituted by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).](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)provision 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.(xvii)[ expenses on advertisement, propaganda and publicity relating to activities and the business of the society not exceeding the ceiling limit as specified by the Registrar or State Government from time to time.] [Inserted by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).](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 fulfilment 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.]
