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How to Calculate Net Profit for Managerial Remuneration
As per companies act the net profit we arrive at in financial statements say statement of financial performance (P&L statement) should not be used for calculating the remuneration payable to directors. Now the companies act 2013 made it mandatory to consider the net profit calculated u/s 198 of the act for CSR also. Here I’m going to discuss some lines about Calculation of net profit for managerial remuneration. After calculating the profit as said above the limits specified in the act in respect of managerial remuneration can be applied to know the maximum allowable remuneration. If the actual remuneration is more than maximum allowable remuneration then we can the permission of Central Government should be obtained. Recommended Articles
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