Beruflich Dokumente
Kultur Dokumente
Following is the Profit & Loss Statement of Zodiac Co. for the year ended 31.3.14.
Dr. Cr.
SOLUTION:
Statement showing the computation of Net Profit as per section 197 of the Companies Act,
2013 for the purpose of calculating Managerial Remuneration:
(Rupees in 000)
Therefor here are the following calculations:
Net profit for the purpose of calculating Managerial Remuneration as per sec.197= 3839
- The overall managerial remuneration = 11% of Net Profit= 11% of 3839
=Rs. 422.29
1. 1 MD = 5% of 3839
= Rs.191.95
NOTES:
1. While computing Net Profit for the purpose of directors remuneration, remuneration of
Mangers and Directors is not deducted.
2. While computing Net profit for the purpose of Managers Remuneration, Directors
remuneration is deducted.