Question

Determine the maximum remuneration payable to the part time directors and
Manager of Bharat Ltd. (a manufacturing company) under Sections 309 and 387
of the Companies Act 1956 from the following particulars:
Before charging any such remuneration, the Profit & Loss account showed a
cedit balance of Rs. 23,05,000 for the year ended 31st March 1998 after taking
into account the following matters:
Rs.
(1) Profit on sale of investments
2,05,000
(W) Subsidy received from government
4,10,000
(ii) Loss on sale of fixed assets
65,000
(iv) Ex-gratia to an employee
30,000
(v) Compensation paid to injured workman
75,000
(vi) Provision for taxation
2,79,000
(vii) Bonus to foreign technicians
3,12,000
(viii) Multiple shift allowance
1,00,000
(1x) Special depreciation
75,000
(x) Capital expenditure
5,10,000
Company is providing depreciation as per Section 350 of the Companies
CH
SI
Act 1956.​

Answer 1

Before charging any such remuneration, the Profit & Loss account showed a

cedit balance of Rs. 23,05,000 for the year ended 31st March 1998 after taking

into account the following matters:

Rs.

(1) Profit on sale of investments

2,05,000

(W) Subsidy received from government

4,10,000

(ii) Loss on sale of fixed assets

65,000

(iv) Ex-gratia to an employee

30,000

(v) Compensation paid to injured workman

75,000

(vi) Provision for taxation

2,79,000

(vii) Bonus to foreign technicians

3,12,000

(viii) Multiple shift allowance

1,00,000

(1x) Special depreciation

75,000

(x) Capital expenditure

5,10,000

Company is providing depreciation as per Section 350 of the Companies

CH

SI

Act 1956