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Industrial Finance Corporation Act, 1948


34. Audit.

  1. The affairs of the Corporation shall be audited by not less than two auditors duly qualified to act as auditors of companies under sub-section (1) of 4*[section 226 of the Companies Act, 1956 (1 of 1956)], one of whom shall be appointed by 5*[the Development Bank] and 6*[the other auditor or auditors] elected in the prescribed manner by

  1. Subs. by Act 78 of 1952, s. 23, for "two".

  2. Subs. by Act 2 of 1982, s. 15 (w.e.f. 12.3.1982).

  3. Subs. by s. 24, ibid., for sub-section (1).

  4. Subs. by Act 43 of 1957, s. 13, for "section 144 of the Indian Companies Act, 1913".

  5. Subs. by Act 18 of 1964, s. 38 and Sch. II, for certain words (w.e.f. 1-8-1964).

  6. Subs. by Act 43 of 1957, s. 13, for "the other". the parties mentioned in sub-section (3) of section 4, and such remunerations as 1*[the Development Bank] may fix shall be paid to the auditors by the Corporation.]

  1. Every auditor shall be supplied with a copy of the annual balance-sheet of the Corporation, and it shall be his duty to examine it together with the accounts and vouchers relating thereto; and every auditor shall have a list delivered to him of all books kept by the Corporation, and shall at all reasonable times have access to the books, accounts and other documents of the Corporation, and may in relation to such accounts examine any Director or officer of the Corporation.

  2. The auditors shall make a report to the shareholders upon the annual balance-sheet and accounts, and in every such report they shall state whether in their opinion the balance-sheet is a full and fair balance-sheet containing all necessary particulars and properly drawn up so as to exhibit a true and correct view of the state of the affairs of the Corporation, and in case they have called for any explanation or information FROM the Board whether it has been given and whether it is satisfactory.

  3. The Central Government may 2*[in consultation with 3*[the Development Bank] ] at any time issue directions to the auditors requiring them to report to it upon the adequacy of measures taken by the Corporation for the protection of its shareholders and creditors or upon the sufficiency of their procedure in auditing the affairs of the Corporation, and may at any time enlarge or extend the scope of the audit or direct that a different procedure in audit be adopted or direct that any other examination be made by the auditors if in its opinion the public interest so requires. 3*[4* * * * *

  1. Subs. by Act 18 of 1964, s. 38 and Sch. II, for "the Central Government" (w.e.f. 1-8-1964).

  2. Ins. by Act 78 of 1952, s. 24.

  3. Subs. by Act 18 of 1964, s. 38 and Sch. II, for "the Comptroller and Auditor General of India" (w.e.f. 1-8-1964).

  4. Sub-section

  1. omitted by s. 38 and Sch. II, ibid. (w.e.f. 1-8-1964).62E

  2. 1*[Without prejudice to anything contained in the preceding sub-sections, the Central Government may, at any time, appoint the Comptroller and Auditor-General of India to examine and report upon the accounts of the Corporation and any expenditure incurred by him in connection with such examination and report shall be payable by the Corporation to the Comptroller and Auditor-General of India.]

  3. Every audit report shall be forwarded to the Central Government and the Government shall cause the same to be laid before both Houses of Parliament.]



Industrial Finance Corporation Act, 1948 Back




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