Section 2(c) in The Companies (Temporary Restrictions On Dividends) Act, 1974
(c)" distributable profits in relation to a company to which this Act applies, means,-(i)one- third of the net profits of the company, or(ii)an amount required to pay twelve per cent. dividend on the face value of the equity shares of the company and dividend payable on its preference shares, whichever is lower;
