Section 33
Allocation of surplus profits.
The Food Corporations Act, 1964
About this Act
An Act to provide for the establishment of Food Corporations for the purpose of trading in foodgrains and other foodstuffs and for matters connected therewith and incidental thereto.
(1) A Food Corporation shall establish a reserve fund to which
shall be credited every year such portion of its annual net profits as that Corporation thinks fit.
(2) After making provision for such reserve fund and for bad and doubtful debts, depreciation in assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (1 of 1956), the balance of its annual net profits shall be paid--
(a) in the case of the Food Corporation of India, to the Central Government, and
(b) in the case of a State Food Corporation, to the Central Government and the Food Corporation of India in the same proportion as the capital provided by them.
(2) After making provision for such reserve fund and for bad and doubtful debts, depreciation in assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (1 of 1956), the balance of its annual net profits shall be paid--
(a) in the case of the Food Corporation of India, to the Central Government, and
(b) in the case of a State Food Corporation, to the Central Government and the Food Corporation of India in the same proportion as the capital provided by them.