The remuneration is computed as per Section 198 and the maximum limit for managerial remuneration exceeds 11% of the net profits for the financial year.
The computation of net profits for managerial remuneration involves determining the amount of profit earned by a company after deducting various expenses, taxes, and other financial obligations. It typically includes subtracting costs such as salaries, operating expenses, interest, depreciation, and taxes from the company's total revenue. The net profit serves as a basis for determining the compensation and bonuses of managerial personnel based on predetermined agreements or performance metrics.
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The remuneration is computed as per Section 198 and the maximum limit for managerial remuneration exceeds 11% of the net profits for the financial year.
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The computation of net profits for managerial remuneration involves determining the amount of profit earned by a company after deducting various expenses, taxes, and other financial obligations. It typically includes subtracting costs such as salaries, operating expenses, interest, depreciation, and taxes from the company's total revenue. The net profit serves as a basis for determining the compensation and bonuses of managerial personnel based on predetermined agreements or performance metrics.
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