If there is more than one branch of a company and some branches are making a profit, while the others are making a loss. What will happen in that case, will the company making a loss give a bonus?
From India, Ahmedabad
From India, Ahmedabad
Dear Shreyan,
As per sec.3 of the PB Act,1965, establishment under the Act includes departments, undertakings and branches. If some branches of the same Company are making profits, it would be treated that the Company as a whole has lost its infancy status unless the particular branch has its own balance sheet. Therefore, though the other branches are making losses, you have to treat the Company as an organic whole and pay bonus to the employees of all branches as per the quantum of allocable surplus in the accounting year.
From India, Salem
6018As per sec.3 of the PB Act,1965, establishment under the Act includes departments, undertakings and branches. If some branches of the same Company are making profits, it would be treated that the Company as a whole has lost its infancy status unless the particular branch has its own balance sheet. Therefore, though the other branches are making losses, you have to treat the Company as an organic whole and pay bonus to the employees of all branches as per the quantum of allocable surplus in the accounting year.
From India, Salem
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