Section 36B(1) in Andhra Pradesh Co-Operative Societies Rules, 1964
(1)Banking and Credit societies and Societies having predominantly financial nature of business. - In this category of societies, since the main business is of borrowing and lending money and the society gets income mainly by way of interest on lending and the expenditure mainly consist of payment of interest on deposits and borrowings, hence in respect of this category of societies the following definition of gross profit shall be adopted."Gross Profit" means interest received on loans, advances and investments and the income earned on non-credit business minus the interest paid on borrowings and deposits on the basis of actuals as per the financial statement of the previous year."
