(1) No part of the funds not to be divided by way of profit other than net profits, of a multi state cooperative society shall be divided by way of bonus or dividend or otherwise rebutted among its members. (2) The net profits of a multi state cooperative society referred to in sub (1) in respect of a society earning profits shall be calculated by deducting the gross profits for the years, all interest accrued and accruing in amounts which are overdue, establishment charges, interest payable and deposits, audit fees, working expenses including repairs, rent, and depreciation, bonus payable to employees under the law relating of bonus for the time being in force, and equalization fund for such provision for payment of income-tax and making approved donations the Income Tax Act, development rebate, provision for development fund, bad debt fund, price fluctuation fund, equalization fund, share capital, redemption fund, investment fund, provision for retirement benefits to employees, and after providing or writing off bad debts and losses not adjusted against any fund created of profit Provided that such society may, add to the net profits for the interest accrued in the preceding years, but actually recovered the year Provided further that in case of such multi state cooperative societies as do not have share capital, the surplus of income over true shall not be treated as net profits and such surplus shall be with in accordance with the bye-laws. Provided that after at least one-fourth of the net profits in any year have been carried to a reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made among the members to such conditions as may be prescribed by the rules or by-laws Provided that after at least one-fourth of the net profit in the year has been transferred to the reserve fund. Payments from the remainder of such profits and from any profits of past years if any available may be made to the members by way of divided or bonus to such extent and subject to such conditions as may be prescribed by the rules or bye-laws. Contribution to charitable purpose. A society may, with the sanction of the Registrar and after one-fourth of the net profits of the year has been transferred to the reserve fund, contribute an amount not exceeding five percent of he remaining net profits to any purpose connected with the development of co-operative society movement or charitable purpose as defined in section 20 of the Charitable Endowments Act, 1890. Here is the news on execution of orders of liquidators of a multi state cooperative society.