Inadequate profit

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.