Jay International has one whole-time director and one managing director as well. During the year, a total remuneration of ₹ 65,670 lakh was paid to managerial staff.

Discussion Question 

A suming that you are an expert, evaluate the case and comment on the managerial remuneration paid by the company.

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Particulars Salaries and wages Repairs Profit and Loss Account for the year ending 2011 (* in lakh) Particulars Miscellaneous expenses Workmen compensation (including 3,000 legal compensation) Compensation for breach of contract Donation to charitable fund Interest Depreciation (7,500 as per Schedule XIV) Loss on sale of investment Provision for tax Proposed dividend Scientific research (new installation) Director's fee Net profit after appropriations Amount 12,000 6,500 10,500 4,250 4,250 500 5,500 11,000 500 1,01,000 75,500 57,500 10,000 2,98,500 5,97,500 Gross profit Subsidies from government Profit on sale of fixed assets (cost *90,000 and WDV 30,000) Amount 5,10,500 12,000 75,000 5,97,500