Here is a Case.... Could anyone help me how the Remuneration would be calculated.. Thanks for your Support...

Query Pertaining to Remuneration Paid to Whole-Time-Director:

CASE:

ABC Ltd has appointed “Y” as a Whole Time Director for a period from November 1^st 2011 to October 31^st 2015. The Remuneration to ‘Y’ is as follows:

Remuneration:

   Salary(Per Month)  - 2,00,000

Commission           -  1% of the Net Profits

QUERY:

The salary of Rs.200,000/- will be paid every month after deducting applicable tax.

 How the Payment of Commission  of 1% can be calculated for ‘Y’ for the 

 financial year  2011- 2012 out of the following Scenario’s :

1.       Will the Net Profits be apportion able for that Particular Months (November  2011 To March 2012) will be calculated and out of that figure the commission of 1% will be evaluated and paid?

                                                     OR

          Will the Net Profits for the whole financial year(April 2011 To March

2012) be calculated and out of that Figure the commission of 1% will be evaluated and paid?

                                                      OR

          Will the Net Profits be calculated on Proportionate basis for the 5 

          Months?

       Example: Net Profit for the financial year 2011-2012  - Rs.10,00,000

                       1000000 * 5/12 * 1%      = XXXX

2.    How Remuneration will be fixed for the financial year 2015-2016 for

       “Y” as he will hold his Directorship only till October 2015?