From the following particulars of R Ltd. calculate the managerial remuneration in the following cases: (a) There's only one whole time director. (b) There are two whole time directors. (c) There are two whole time direct

Calculation of Net Profits u/s 198 of the Companies Act, 2013 Particulars Amount (₹) Net Profit before provision for income tax and managerial remuneration but after depreciation and provision for repair 85,00,000 Add: Depreciation provided in the books 30,00,000 Add: Provision for repairs of Machinery 2,50,000 1,17,50,000 Less: Depreciation as per Schedule II 24,00,000 Less: Actual expenditure incurred on repair 1,50,000 Net Profits u/s 198 92,00,000 Calculation of Managerial Remuneration: As per Section 197 of the Companies Act, 2013 , the total managerial remuneration payable by a public company to its directors, including managing director and whole-time director, and its manager in respect of any financial year shall not exceed 11% of the net profits of the company computed in the manner laid down in Section 198. However, the company in general meeting may, with the approval of the Central Government, authorise the payment of remuneration exceeding 11% of the net profits of the company, subject to the provisions of Schedule V. The remuneration payable to any one managing director or whole-time director or manager shall not exceed 5% of the net profits of the company, and if there is more than one such director, remuneration shall not exceed 10% of the net profits to all such directors and manager taken together. The remuneration payable to directors who are neither managing directors nor whole-time directors shall not exceed 1% of the net profits of the company if there is a managing director or whole-time director or manager, and 3% of the net profits in any other case. Based on the Net Profits u/s 198 = ₹92,00,000: (a) If there is only one whole-time director: Managerial Remuneration = 5% of ₹92,00,000 = ₹4,60,000 (b) If there are two whole-time directors: Managerial Remuneration = 10% of ₹92,00,000 = ₹9,20,000 (c) If there are two whole-time directors, one part-time director, and a manager: Managerial Remuneration = 11% of ₹92,00,000 = ₹10,12,000