24. Disposal of profits accruing to Institution, to reserve fund.—(1) The Institution shall establish
a reserve fund to which may be transferred such sums as the Board may deem fit out of the annual profits
accruing to the Institution:
Provided that the sums to be transferred under this sub-section shall not be less than twenty per cent.
of the annual profits accruing to the Institution.
(2) After making provisions for bad and doubtful debts, depreciation of assets and for all other matters
for which provision is necessary or expedient or which is usually provided for by bankers and for the reserve
fund referred to in sub-section (1), and after transferring a part of the profit to such other reserves or funds
as may be considered appropriate, the Board may out of its net profits propose a dividend.
25. Preparation of balance-sheet and accounts.—(1) The balance-sheet and accounts of the
Institution shall be prepared in such form and manner as may be prescribed.
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(2) The Board shall cause the books and accounts of the Institution to be closed and balanced as on the
31st day of March each year or such other date as the Board may determine.
26. Audit.—(1) The accounts of the Institution shall be audited by auditors duly qualified to act as
auditors under sub-section (1) of section 141 of the Companies Act, 2013 (18 of 2013), who shall be
appointed by the Institution in general meeting of the shareholders out of the panel of auditors approved by
the Reserve Bank for such term and on such remuneration as the Reserve Bank may fix.
(2) The auditors shall be supplied with a copy of the annual balance-sheet of the Institution and it shall
be their duty to examine it together with the accounts and vouchers relating thereto and they shall have a
list delivered to them of all books kept by the Institution and shall at all reasonable times have access to the
books, accounts, vouchers and other documents of the Institution.
(3) The auditors may, in relation to such accounts, examine any director or any officer or other
employee of the Institution and shall be entitled to require from the Board or officers or other employees
of the Institution such information and explanation as they may think necessary for the performance of their
duties.
(4) The auditors shall make a report to the Institution upon the annual balance-sheet and accounts
examined by them 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 fair view of the state of affairs of the Institution and in case they had called for any explanation or
information from the Board or any officer or other employee of the Institution, whether it has been given
and whether it is satisfactory.
(5) The Institution shall furnish to the Central Government and the Reserve Bank within four months
from the date on which its accounts are closed and balanced, a copy of its balance-sheet and accounts
together with a copy of the auditor's report and a report of the working of the Institution during the relevant
year, and the Central Government shall, as soon as may be after they are received by it, cause the same to
be laid before each House of Parliament.
27. Returns and report.—The Institution shall furnish, from time to time, to the Central Government
and to the Reserve Bank, such returns as the Central Government or the Reserve Bank may require.