Section 66(1) in The Gujarat Co-Operative Societies Act, 1961
(1)A society earning profit, shall calculate its annual net profits by deducting from the gross profits for the year, all accrued interest which is overdue for more than six months, establishment charges, contributions, if any, towards the provident fund and gratuity fund of its employees, interest payable on loan and deposits, audit fees, working expenses including repairs, rents, 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 received 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.
