Calculation of net profits: rules on allowable credits, disallowances, and deductions determining managerial remuneration eligibility. Computation of a company's net profits for managerial remuneration requires crediting governmental bounties and subsidies, excluding capital receipts and fair value equity adjustments, deducting ordinary working charges including directors' remuneration, staff bonuses, interest on borrowings, repairs, depreciation, bad debts and legal liabilities, and disallowing deductions for income tax, voluntary payments, capital losses and fair value changes recognised in equity.
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Provisions expressly mentioned in the judgment/order text.
Calculation of net profits: rules on allowable credits, disallowances, and deductions determining managerial remuneration eligibility.
Computation of a company's net profits for managerial remuneration requires crediting governmental bounties and subsidies, excluding capital receipts and fair value equity adjustments, deducting ordinary working charges including directors' remuneration, staff bonuses, interest on borrowings, repairs, depreciation, bad debts and legal liabilities, and disallowing deductions for income tax, voluntary payments, capital losses and fair value changes recognised in equity.
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