inadequate profita

Dear Ms Nisha,

The term "inadequate profit" has not been defined in the Companies Act, 1956 for the purpose of managerial remuneration, however in my opinion  and as per my interpretation, the profits of any company (Public Co. and Subsidiary of a Public Co.) may be termed as inadequate in case the proposed remuneration to the managerial personnel exceeds the limit of 5%/10%/11% (as the case may be with regard to Section 309 of Cos Act) of the profits as per Section 198.

Best Regards

CS Ashwini Kumar

Originally posted by : CS Ankur Srivastava
	In adequate Profits:- When a company contracts its WTD(s)for the remuneration which is exceeding the specified percentage of its Net Profit the profit is termed as inadequate profits to serve that contract (only for that purpose). And schedule XIII would be applicable.

hello sir inmy point of view 'adequate profits'  does not mean as above because if company enters into such contract then schedule XIII is not complied with hence approval of central government is required.

so i think sir ashini kumar is correct.

regards,

sumat singhal

Originally posted by : Sumat Singhal
	Originally posted by : CS Ankur Srivastava In adequate Profits:- When a company contracts its WTD(s)for the remuneration which is exceeding the specified percentage of its Net Profit the profit is termed as inadequate profits to serve that contract (only for that purpose). And schedule XIII would be applicable. hello sir inmy point of view 'adequate profits'  does not mean as above because if company enters into such contract then schedule XIII is not complied with hence approval of central government is required. so i think sir ashini kumar is correct. regards, sumat singhal

Please go through Schecule XIII. In the above case schedule XIII would apply.