(1) The other purposes for which a society may appropriate its profits shall be education and enlightenment of the members of the society as also any Co-operative or charitable purpose including relief to the poor, education, medical relief and advancement of any other general public utility, provided that the expenditure on such items does not exceed 10 percent of the net profits.
(2) No bonus on shares shall be given over and above the dividend.
Explanation: — Nothing in this rule shall prohibit giving of any bonus as contemplated in clause (3) of section 2.
(3) Notwithstanding anything contained in Sub-Rule (1), a Cooperative Credit Structure Society is not required to contribute to funds other than those improving its net worth or owned funds.
51. In addition to the sums referred to in sub-section (1) of section 57, the following sums shall be deducted by a society from its profits before arriving at its net profit for the purposes of sub-section (2) of section 57, — Rule 49* are inserted by TCS (Fourth Amendment) Act 2011.
Rule 50* Subsection (3) are inserted by TCS (Fourth Amendment) Act 2011.
Appropriation of profits.
Amount to be deducted by a society from its profits before arriving at its net profits.
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(i) contribution, if any, to be made to any sinking fund or guarantee fund constituted under the provisions of the Act, these rules or bye-laws of the society for ensuring due fulfillment of guarantee given by Government in respect of loans raised by the society;
(ii) provision considered necessary for depreciation in the value of any security, bonds or shares held by the society as part of its investments;
(iii) a provision required to be made for the redemption and share capital contributed by Government or by a federal society.
51 A: Prudential norms A Cooperative Credit Structure Society shall follow the guidelines on prudential norms including provisioning and capital to Risk Weighted Assets Ratio norms, if any, framed by the Reserve Bank or, as the case may be, the National Bank.