(3)Where the foreman is a company or co-operative society, the aggregate chit amount of the chits conducted by it shall not at any time exceed ten times the net-owned funds of the company or the co-operative society, as the case may be.Explanation.—For the purposes of this sub-section, “net-owned funds” shall mean the aggregate of the paid-up capital and free reserves as disclosed in the last audited balance-sheet of the company or co-operative society, as reduced by the amount of accumulated balance of loss, deferred revenue, expenditure and other intangible assets, if any, as disclosed in the said balance-sheet.* The words in brackets shall stand substituted (date to be notified) to read as “rupees one lakh” by Act 10 of 2001, s. 3.** The words in brackets shall stand substituted (date to be notified) to read as “six lakhs” by s. 3, ibid.
