Urgent inquiry about Calculation of net profits u/s 349 of Companies Act

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neha gupta

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Apr 13, 2011, 8:05:29 AM4/13/11

to Practicing Company Secretaries in India

Dear Friends,

While calculation net profits u/s 349 for providing Remuneration to Directors as per section 198 (11%), certain items are deducted and some are added in the net profits of the Company as shown in the P & L account of the Company at the year end.

Now my query is this as per 349(4) items which are deducted in net profits(as per P &L) includes Directors remuneration, as we have already deducted the same in calculation of net profits, why again we r deducting the same as per formula and also interest on secured CC limits will be treated same.