Bonus act 1965 query

Dear all,
I am a CA-IPC student. I have a query regarding The payment of Bonus Act,1965.

U/s 12 of the said act regarding Ceiling of Salary or wage, it is given that ' If the salary or wage of an employee exceeds Rs.3500 per month, then for the computation of bonus the salary or wage shall be taken as Rs.3500 per month'

U/s 11 of the same act regarding Payment of maximum bonus it is said that  ' If allocable surplus exceeds the amount of minimum bonus payable to the employees, then the whole of allocable surplus shall be divided and paid amongst the employees in the form of bonus in proportion of their salary or wages. However, such division shall not exceed 20% of the salary or wages of employees.'

From the above said provisions, can we conclude that the maximum amount of bonus which can be paid to an employee shall not exceed Rs.3500 *12 *20% = Rs. 8400?
Or is it something else and I am missing something?

Thank you :)