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Section 22: Manner of determining net profits under sub-section (1) of Section 57 and rate at which dividend may be paid by Co-operative Societies

The Karnataka Co-operative Societies Rules, 1960.State Rules of Karnataka · 1959

(1) In determining net profits from which not less than 25 per cent are to be taken to the reserve fund under sub-section (2) of Section 57, the following procedure shall be adopted.-

(a) All interest accrued due, but not actually realized shall be deducted from the gross profits for the year, before the net profits are arrived at. So much of the accrued interest that has been so deducted from the profits of the year, as are actually recovered during the subsequent year. The Registrar may, in special cases and after due enquiry, permit a society to treat interest accrued due for a period not exceeding one year as profits; but, if the amount so permitted to be treated as profits is not actually recovered during the subsequent year before the net profits of that year are arrived at;

(b) All interest paid and due for the year shall be charged off to profit;

(c) All management expenses paid and due for the year shall be charged off to profit;

(d) All rents, rates, taxes, subscriptions and insurance charges paid and due for the year shall be charged off to profit;

(e) Audit fee due for the year in accordance with the scale fixed by Government shall be charged off to profit;

(f) Adequate provision for depreciation on furniture, stock, building, land and other property owned by the society shall be made in accordance with the provisions of the bye-laws and charged off to profit;

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(g) In the case of Trading Co-operative Societies, Marketing Co-operative Societies, Industrial Co-operative Societies and Processing Co-operative Societies provision shall also made for contribution to the Trade fluctuation Fund in pursuance of the bylaws to be framed for this purpose;

(h) Any other items notified by the Registrar as being a charge on the profits of any particular class or type of societies shall also be charged off to profit during the audit of such class or type of societies.

1[(2) No Co-operative Society shall pay its share-holders a dividend exceeding twenty-five per cent in any year on the paid-up share capital in the name of each share-holder:

3[x x x x x;]

Provided further that bonus, if any, paid on shares shall also be subject to the overall limitation mentioned in this sub-rule.]

Where this provision sits

ActThe Karnataka Co-operative Societies Rules, 1960.
Section22
Marginal noteManner of determining net profits under sub-section (1) of Section 57 and rate at which dividend may be paid by Co-operative Societies
JurisdictionState of Karnataka
StatusIn force as published by the source

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