logic between section 197 & schedule v limit

Schedule V is invoked only when the company wants / desire to pay more than the limits permitted in the law i.e., 11% of NP i.e., Schedule V is not the sole property of loss making Company, even a profit making companies can take shelter also.  

However the Act has considered certain aspects and given a specific provision / limits which enables even a loss making company to pay some considerable amount as remuneration so that it can attract and retain good talents who has the capacity to convert a loss making company into a profit making one.