Section 58(1) in Uttarakhand Co-Operative Societies Act, 2003
(1)the net profit of the co-operative society in a co-operative year shall be computed after deduction the following from its gross profit in that year-(a)interest that is overdue;(b)managerial expenses;(c)contributions to the provident fund or the gratuity fund of the employees;(d)interest on loans and deposits;(e)audit fee;(f)working expenses which include repairs, rents, taxes and depreciation of property;(g)contribution to the fund created for writing off unadjusted bad debts and losses :Provided that a co-operative society may add to the net profit of a year, the interest which accrued in the previous year but which was recovered in the year.(1-A) A co-operative society shall distribute the net profit of a year as computed under sub-section (1), including the net profits brought forward from the previous years, in the following manner-(a)an amount not less than twenty-five per cent shall be transferred to a fund called the reserved fund;(b)not less than such amount as may be prescribed, shall be credited to a co-operative education fund to be established in the manner prescribed, and this shall be applicable to such co-operative societies also which incur loss in the year;(c)an amount not exceeding twenty percent as may be prescribed shall be transferred to a fund called the Equity Redemption Fund to be established and utilized in the manner prescribed by such co-operative society which has the subscription of the State Government in its share capital :Provided that the aggregate amount transferred by a co-operative society to such fund shall not exceed the amount subscribed by the State Government in the share capital of that co-operative society.
