Viraj Mehta (Job) (69 Points)
13 October 2017
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 16 October 2017
1) Work out actual amount of remuneration proposed to be paid to directors in current financial year.
2) Work out estimated net profit u/s 198 of current financial year
3) Take total of (1) and (2) above
4) Work out maximum remuneration that can be paid to directors u/s 197 ( @ 5%/10%/11% as the case may be of (3) above)
5) If amount as per (1) above is not more than (4) above, profit is adequate. Otherwise profit is inadequate.
Himanshu Bhardwaj
(51 Points)
Replied 16 October 2017
CAclubindia
