(1) the net profit of the co-operative society in a co-operative year shall be computed after deduction the following from its gross profit in that year—
(a) interest that is overdue;
(b) managerial expenses;
(c) contributions to the provident fund or the gratuity fund of the employees;
(d) interest on loans and deposits;
(e) audit fee;
(f) working expenses which include repairs, rents, taxes and depreciation of property;
(g) contribution to the fund created for writing off unadjusted bad debts and losses :
Provided that a co-operative society may add to the net profit of a year, the interest which accrued in the previous year but which was recovered in the year.
(1-A) A co-operative society shall distribute the net profit of a year as computed under sub-section (1), including the net profits brought forward from the previous years, in the following manner—
(a) an amount not less than twenty-five per cent shall be transferred to a fund called the reserved fund;
(b) not less than such amount as may be prescribed, shall be credited to a co-operative education fund to be established in the manner prescribed, and this shall be applicable to such co-operative societies also which incur loss in the year;
(c) an amount not e