law: Multi-State Cooperative Societies Act, 1984 
  Chapter VI:
  
  Properties and Funds of Multi-State Cooperative Societies 
  60. Funds not to be
  
  divided by way of profit.- 
  1.     
  
    No
  
  part of the funds, other than net profits, of a multi-State cooperative society
  
  shall be divided by way of bonus or dividend or otherwise distributed among its
  
  members.
  2.     
  
    The
  
  net profits of a multi-State cooperative society referred to in sub-section (1)
  
  in respect of a society earning profit shall be calculated by deducting from
  
  the gross profits for the year, all interest accrued and accruing in relation
  
  to amounts which are overdue, establishment charges, interest payable on loans
  
  and deposits, audit fees, working expenses including repairs, rent, taxes and
  
  depreciation, bonus payable to employees under the law relating to payment of
  
  bonus for the tem being in force, and equilisation fund for such bonus,
  
  provision for payment of income-tax and making approved donations under the
  
  Income-tax Act, 1961, development rebate, provision for development fund, bad
  
  debt fund, price fluctuation fund, dividend equalisation fund, share capital,
  
  redemption fund, investment fluctuation fund, provision for retirement benefits
  
  to employees, and after providing for or writing off bad debt and losses not
  
  adjusted against any funds created out of profit.
  Provided
  
  further that  
  
  in case of such multi-State cooperative societies as do not have share capital,
  
  the surplus of income over expenditure shall not be treated as net profits and
  
  such surplus shall be dealt with in accordance with the bye-laws.