15 January 2010
In the case of company Under section 293(1)(e) or under section 293A : the contribution should not exceed 5% of average profit of last three years , but in the case of losses in all three years or in any of the preceeding three years , how to calculate the average net profit ?
15 January 2010
In case of loss in all or any of the years, take the average. Example: 1st Year: Rs. 50 lacs pft 2nd Year: Rs. 27 lacs loss 3rd Year: Rs. 40 lacs pft Total: Rs. 63 lacs for 3 Years Average: Rs. 21 lacs Pft. Nw take 5% of this.
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