Chapter VI FINANCE, ACCOUNTS AND AUDIT

All property, fund and other assets vesting in the Corporation shall be held and applied by it, for the purposes of this Act.

1. (1) The Corporation shall have and maintain its own fund, to which shall be credited,—
   • (a) all moneys received by the Corporation from the State Government by way of grants, subventions, loans, advances and the loans raised under this Act;
   • (b) all fees, costs and charges received by the Corporation under this Act;
   • (c) all moneys received by the Corporation from the disposal of lands, buildings and other properties, movable and immovable and other transactions;
   • (d) all moneys received by the Corporation by way of water charges, rents and profits or from any other source.
2. (2) The Corporation may keep current and deposit account with the State Bank of India or any other Bank approved by the State Government in this behalf.
3. (3) Such accounts shall be operated by such officers of the Corporation as may be authorised by it in this behalf.
4. (4) Notwithstanding anything contained in sub-sections (2) and (3), the Corporation may keep on hand such sum as it thinks fit for its day to day transactions, subject to such limits and conditions as may be prescribed.

1. (1) The State Government shall, by appropriation duly made in this behalf from time to time, provide such funds as it may deem necessary, as it’s share of the capital required by the Corporation, for the performance of the functions of the Corporation under this Act: Provided that, the contribution made by the State Government shall be exclusive of the expenditure incurred by the State Government for and in connection with the establishment of the Corporation.
2. (2) The capital provided by the State Government shall not carry any interest.

The State Government may, after due appropriation made by the State Legislature by law in this behalf, make such grants, subventions, loans and advances to the Corporation as it may deem necessary for the performance of the functions of the Corporation under this Act; and all grants, subventions, loans and advances made shall be on such terms and conditions as the State Government may determine.

1. (1) The Corporation may, subject to such conditions as may be prescribed in this behalf, borrow money from the financial institutions or nonresident Indians or from the open market by issue of guaranteed or un-guaranteed bonds, debentures, stocks, cash certificates, fixed deposit receipts and otherwise, for the purpose of providing itself with adequate resources.
2. (2) The maximum amount which the Corporation may at any time have on loan under sub- section (1) shall not exceed Rupees 90 crores, unless the State Government fixes a higher maximum limit for this purpose.

The Corporation may accept deposits on such conditions as it deems fit from persons, authorities or institutions, to whom allotment or sale of land or buildings or fishing rights is made or is likely to be made in furtherance of the objects of this Act.

The Corporation shall have the authority to spend such sums as it thinks fit for the purposes authorised under this Act from and out of the fund of the Corporation referred to in section 28 or from the reserve and other funds referred to in section 34, as the case may be.

1. (1) The Corporation shall make provisions for such reserve and other specially denominated funds as the State Government may, from time to time, direct.
2. (2) The management of the funds referred to in sub-section (1), the sums to be transferred, from time to time, to the credit thereof and the application of money comprised therein, shall, subject to the directions, if any, issued by the State Government in this behalf, be determined by the Corporation.
3. (3) None of the funds referred to in sub-section (1), shall, except with the previous approval of the State Government, be utilised for any purposes other than that for which it is constituted.

1. (1) The Managing Director of the Corporation, shall, at a special meeting to be held in the month of September in each year, lay before the Corporation the budget estimates of the Corporation for the next year.
2. (2) Every such budget estimate shall be prepared in such form as the State Government may, from time to time, by order, determine and shall provide for,—
   • (i) the proposals, plans and projects which the Corporation proposes to execute, either in part or in whole, during the next year;
   • (ii) the due fulfillment of all the liabilities of the Corporation; and
   • (iii) the implementation of the provisions of this Act; and such estimates shall contain a statement showing the estimated income and expenditure on capital and revenue accounts for the next year and such other particulars, indicating the financial performance of the Corporation, as the State Government may direct. The budget shall clearly reveal the financial outlay and performance.

The Corporation shall consider the budget estimates submitted to it under section 35 and approve the same with or without modifications on or before such date as the State Government may, from time to time, determine.

The State Government may guarantee the repayment of any loans and payments of interest on all or any of the loans, given or transferred to the Corporation.

1. (1) Subject to the provisions of sub-section (2) of section 40 of this Act, the net profit, if any, attributable to each of the main objects shall be fully credited to the Corporation.
2. (2) The net deficit, if any, in respect of the objects shall be solely borne by the State

Interest charges and other expenses to be added to and receipts taken for reduction of capital cost.— The interest charges and all other expenditure shall be added to the capital cost and all receipts shall be taken in reduction of such capital cost, if the Corporation is in deficit.

1. (1) The Corporation may make provisions for depreciation fund at such rates and on such terms as may be specified by the Comptroller and Auditor General of India, and in consultation with the State Government.
2. (2) The net profit for the purpose of section 38 shall be determined after such provision has been made.

In the event of any betterment levy being imposed by the State Government, the apportionment of proceeds thereof insofar as they are attributable to the operations of the Corporation, shall be credited to the Corporation.

1. (1) The Corporation shall, by such date in each financial year, as may be prescribed, prepare and submit to the State Government for approval an annual financial statement and the programme of work for succeeding financial year and the State Government may approve such financial statement and the programme of work of the Corporation as submitted by the Corporation or with such variations as the State Government thinks fit.
2. (2) The annual financial statement shall show the estimated receipts and expenditure during the succeeding financial year in such form and detail as may be prescribed.
3. (3) The Corporation shall be competent to make variations in the approved programme of work in the course of the financial year provided that all such variations and re-appropriations out of the sanctioned budget are brought to the notice of the State Government by a supplementary financial statement.
4. (4) A copy each, of the annual financial statement and the programme of work and the supplementary financial statement, if any, shall be placed before the State Legislature as soon as may be after their receipt by the State Government.

1. (1) The Corporation shall maintain books in relation to the business and transactions in such form, and in such manner, as may be prescribed.
2. (2) The accounts of the Corporation shall be audited by an Auditor appointed by the State Government, in consultation with the Comptroller and Auditor General of India.
3. (3) Within nine months from the end of the financial year, the Corporation shall send a copy of the accounts audited together with a copy of the report of the Auditor thereon to the State Government.
4. (4) The State Government shall cause the accounts of the Corporation together with the audit report thereon forwarded to it under sub-section (3) to be laid before the State Legislature, as far as possible, before the expiry of the year next succeeding the year to which the accounts and the report relate.

1. (1) Notwithstanding anything contained in the last preceding section, the State Government may order that there shall be concurrent audit of the accounts of the Corporation by such person as it thinks fit. The State Government may also direct a special audit to be made by such person as it thinks fit of the accounts of the Corporation relating to any particular transactions or class or series of transactions or to a particular period.
2. (2) When an order is made under sub-section (1), the Corporation shall present or cause to be presented for audit all such accounts and shall furnish to the person appointed under sub-section
3. (1) such information as the said person may require for the purpose of audit.