Chapter IV FI A CE, ACCOU TS, AUDIT A D REPORTS OF

(1) The Association shall have its own fund and all receipts of the Association shall be credited thereto and all payments by the Association shall be made therefrom.

(2) The Association may accept grants, subventions, donations and gifts from the Central Government or the State Government or a local authority or any individual or body, whether incorporated or not, for the purposes of this Act.

(3) The Association may spend such sums as it thinks fit for the performance of its functions under this Act and such sums shall be treated as expenditure payable out of the fund of the Association.

(4) All moneys belonging to the fund or Sinking Fund of the Association shall be kept in any corresponding new Bank specified in column 2 of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and in column 2 of the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 and approved by the State Government for the purpose or invested in securities authorised by the Trusts Act, 1882 at the discretion of the Association.

(1) Whenever the Association raises a loan for the purposes of this Act, it shall establish a fund to be called a Sinking Fund and shall pay into it on such dates as may be approved by the Competent Authority such sum as will, with accumulations of compound interest, be sufficient after payment of all expenses to pay up the loan within the stipulated period:

Provided that if, at any time, the sum standing to the credit of the Sinking Fund is of such amount that if allowed to accumulate at compound interest, it is sufficient to repay the loan within the stipulated period, then, with the permission of the Competent Authority, further payments into such fund may be discontinued.

(2) The Association may apply a Sinking Fund or any part thereof in or towards the discharge of the loan for which the fund is established and, until such loan or part is wholly discharged, shall not apply the same for any other purpose.

(1) (a) The Association shall have prepared annually or on before such date and in such form and manner, as may be prescribed, a budget for the next financial year, showing the estimated receipts and expenditure. (b) The Association shall, as soon as may be after the said date, consider the budget estimate so prepared and approve the same subject to such modification as it may make.

(2) Except in the case of emergency, no sum shall be expended by or on behalf of the Association unless the expenditure is covered by provision in the budget as approved.

(1) The accounts of the Association shall be prepared and maintained in such form and manner as may be prescribed.

(2) The Association shall cause to be prepared for each financial year an annual statement of accounts in such form as may be prescribed.

(3) The accounts of the Association shall be audited by an auditor who is a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949.

(4) The said auditor shall be appointed by the Association.

(5) Every auditor appointed to audit the accounts of the Association under this Act shall have a right to demand the production of books of accounts, connected vouchers and other documents and papers, to inspect the offices of the Association and to require such information from the Association as he may think necessary for performance of his duty as an auditor.

(6) The auditor shall send a copy of his report together with a copy of audited accounts to the Association which shall, as soon as may be after the receipt of the audit report, forward the same to the Competent Authority.

The Association shall, during each financial year, prepare, in such form and at such time as may be prescribed, an annual report giving a true and full account of its activities during the previous financial year and an account of activities likely to be undertaken by it in the current financial year and copies of such report shall be forwarded to the Competent Authority.