Page 39 - GB SUBJECTS NEW - ALL PAGE NO

Sub No.4: Net Profit Allocation for the F.Y. 2023-24 as per Bye-Law No.(40)

The Audit of the accounts of the society for the F.Y 2023-24 audited by

M/s. Raja Gopal Naidu & Co., Chartered Accounts, Tirupati and submitted Audit Report to

the Society on 03-06-2024. As per Audited Balance Sheet for the F.Y.2023-24 earned Net
Profit for Rs.7,34,60,770.49.

In pursuance of the Bye-Law No.(40), registered by the District Cooperative Officer
(DCO), Tirupati vide RC No.626/2023,D1,Dated:04-07-2023, the appropriation of Profits
under section 45 and Rule 36 of APCS Act & Rules 1964, as detailed below:

The society shall, subject to such limits as may be prescribed from time to time 1% of

gross profit to Cooperative Education Fund.

The society shall credit an amount not more than 30% of Gross Profit or 2% of
Working Capital whichever is less to the Administrative and Contingent Fund.

1) 25 % of Net Profit shall be transferred to the Reserve Fund.
2) 5% of Net Profit as Bad Debts Reserve.
3) 50% of Net Profits shall be credited towards Dividend to the members on their paid-
up Share Capital.
The balance of Net Profits shall be transferred to the following reserves.

4) 15% of Net Profit shall be credited to the Members Welfare Fund
5) 5% of Net Profit shall be deposited towards Building Fund.

All un-disbursable and invisible profits shall be added to the Reserve Fund.

In accordance with the Bye-Law No.(40), worked out the Net Profit for
Rs. 7,34,60,770.49, for the FY 2023-24 as detailed below:

S.No. Name of Reserve Percentage Amount Rs.
1 Reserve Fund 25% 1,83,65,193.00

2 Bad Debts Reserve 05% 36,73,039.0
3 Dividend 50% 3,67,30,385.00

4 Members Welfare Fund 15% 1,10,19,115.00
5 Building Fund 05% 36,73,038.49

TOTAL 100% 7,34,60,770.49

37