(l) A society earning profit, shall calculate the net profit by deducting from the gross profits for the year, all accrued interest which is overdue for more than six months, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taXes and depreciation, and after providing for or writing off bad debts and losses not adjusted against any fund created out of profits. A society may, however add to the net profits for the year, interest accrued in the preceding years, but actually recovered during the year. The net profits thus arrived at, together .
with the amount of profits brought forward from the previous year, shall be available for appropriation.
(2) A society shall appropriate its profits to the reserve fund or any other funds, for payment of dividends to members on their 2 shares, for contribution to the educational fund of the State Co-operative Union Which may be notified in this behalf by the Registrar, for payment of bonus on the basis of support received from members and 3 persons Who are not members to its business, for payment of honoraria, and towards any other purpose which may be Specified j in the rules or bye-laws.
Provided that no part of the profits shall be appropriated except With the approval of the annual general meeting and in conformity With the Act, Rules and Bye-laws.