26. Submission of programme of activities and financial estimates -
(1) Every Warehousing Corporation shall prepare before the commencement of each year a
statement or programme of its activities during the forthcoming year as well as a financial estimate in
respect thereof.
(2) A statement prepared under sub-section (1) shall, not later than three months before the
commencement of each year, be submitted for approval.
(a) in the case of the Central Warehousing Corporation, to the Central Government;
(b) in the case of a State Warehousing Corporation, to the Central Warehousing Corporation and
the State Government.
(3) The Statement and the financial estimate of a Warehousing Corporation referred to in subsection (1) may, with the approval of the Central Government in the case of the Central Warehousing
Corporation, or with the approval of the Central Warehousing Corporation and the State Government
in the case of a State Warehousing Corporation, be revised by the Warehousing Corporation.
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27. Borrowing powers of Warehousing Corporation - (1) A Warehousing Corporation
may, in consultation with the Reserve Bank and with the previous approval of the appropriate
Government, issue and sell bonds and debentures carrying interest for the purposes of raising funds;
Provided that the total amount of bonds and debentures issued and outstanding and if the
other borrowings of the Corporation shall not at any time exceed ten times the amount of the paid-up
share capital and the reserve fund of the Corporation.
(2) A Warehousing Corporation may, for the purpose of carrying out its functions under this Act,
borrow money-
(i) from the Reserve Bank, or
(ii) from the State bank, for such periods for which, and upon any of the securities against
which, it is authorised to advance and lend moneys, under the provisions of (the State bank of India
Act, 1955), or
(iii) from any nationalised bank, or
(iv) from such insurance company, investment trust or other financial institution as may
be approved by the Central Government in this behalf.
(3) Subject to the provision to sub-section (i), the Central Warehousing Corporation may borrow
money from the Central Government and a State Warehousing Corporation may borrow money from
the State Government and the Central Warehousing Corporation on such securities and on such terms
and conditions as may be agreed upon between the borrowing corporation and the lender, in each
case.
(4) The bonds and debentures of a Warehousing Corporation may be guaranteed by the
appropriate Government as to the repayment of principal and the payment of interest at such rate as
may be fixed by the appropriate Government on the recommendation of the board of directors of the
Corporation at the time the bonds or debentures are issued.
(a) Substituted for the words "the State Bank of India Act, 1955" by the Warehousing
Corporations (Amendment) Act, 1976 (42 of 1976), S.7 (24-3-1976).
(b) Inserted, ibid.
28. Deposit account - All moneys belonging to a Warehousing Corporation shall be
deposited in the Reserve Bank or the State Bank (or any nationalised bank) or subject to any rules
made under this Act, in (any other scheduled bank) or co-operative bank.
(a) Inserted by the Warehousing Corporations (Amendment) Act, 1976 (42 or 1976 S.8
(24-3-1976).
(b) Substituted for the words "any scheduled bank", ibid.
29. Investment of funds - A Warehousing Corporation may invest its funds in the
securities of the Central or any State Government or in such other manner as may be prescribed by
the appropriate Government.
30. Disposal of profits -
(1) Every Warehousing Corporation shall establish a reserve fund out of its annual net profits.
(2) After making provision for bad and doubtful debts, depreciation on assets and all other
matters which are usually provided for by companies registered and incorporated under the
Companies Act, 1956, a Warehousing Corporation may, out of its net annual profits declare a
dividend.
Provided that for so long as the reserve fund is less than the paid-up share capital of the
Central Warehousing Corporation and until there has been repair to the Central Government such
sum, if any, as that Government may have paid under a guarantee given in pursuance of sub-section
(1) of section 5 or sub-section(4) of section 27, the rate of such dividend, in the case of the Central
Warehousing Corporation shall not exceed the rate guaranteed by the Central Government under
sub-section (1) of section 5.
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31. Accounts and audit of Warehousing Corporation -
(1) Every Warehousing Corporation shall maintain proper accounts and other relevant records
and prepare an annual statement of accounts including the profit and loss account and the balance
sheet in such form as may be prescribed.
Provided that in the case of the Central Warehousing Corporation, the accounts relating to the
Warehousing Fund and the General Fund shall be maintained separately.
(2) The accounts of Warehousing Corporation shall be audited by an auditor duly qualified to act
as an auditor of companies under Section 226 of the Companies Act, 1956.
(3) The said auditor shall be appointed by the Appropriate Government on the advice of the
Comptroller and Auditor General of India.
(4) The auditor shall be supplied with a copy of the annual balance sheet and the profit and loss
account of the Warehousing Corporation and it shall be his duty to examine them together with the
accounts and vouchers relating thereto, and he 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 require from any officer of the Corporation such information
and explanations as the auditor may think necessary for the performance of this duties as auditor.
(5) The auditor shall make a report to the shareholders on the accounts examined by him and on
the annual balance sheet and the profit and loss account and in every such report, he shall state
whether in his opinion the accounts give a true and fair view:
(a) in the case of the balance sheet, of the State of the Corporation's affairs at the end of
its financial year, and
(b) in the case of the profit and loss account, of the profit or loss for its financial year and
in the case he has called for any explanation or information from the officers whether it has been
given and whether it is satisfactory.
(6) The appropriate Government may, after consultation with the Comptroller and Auditor
General of India at any time issue directions to the auditor requiring him to report to the appropriate
Government upon the adequacy of measures taken by a Warehousing Corporation for the protection
of its shareholders and creditors or upon the sufficiency of his procedure in auditing the accounts of
the Corporation and may enlarge or extend the scope of the audit or direct that a different procedure
in audit may be adopted or direct that any other examination may be made by the auditor if in the
opinion of the appropriate Government public interest so requires.
(7) A Warehousing Corporation shall send a copy of every report of the auditor to the
Conptroller and Auditor General of India and to the Central Government at least one month before it
is placed before the shareholders.
(8) Notwithstanding anything herein before contained in this section, the Comptroller and
Auditor General of India may, either of his own motion or on a request received in this behalf from
the appropriate Government, undertake in respect of Warehousing Corporation such audit and at
such time as he may consider necessary.
Provided that where the Central Government is required to make any payment on account of
the guarantee given by it under sub-section (1) of section 5, such audit shall be undertaken by the
Comptroller and Auditor General of India or any person authorised by him on his behalf.
(9) The Comptroller and Auditor General of India or any person authorised by him in connection
with the audit of the accounts of a Warehousing Corporation shall have the same rights, privileges
and authority in connection with such audit as the Comptroller and Auditor General has in
connection with the audit of Government accounts and in particular, shall have the right to demand
the production of books, accounts, connected vouchers and other documents and papers and to
inspect the office of the Corporation.
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(10) The annual accounts of a Warehousing Corporation together with the audit report thereon
shall be placed before the annual general meeting of the Corporation within six months of the close
of the financial year.
(11) Every audit report under this section shall be forwarded to the appropriate Government
within a month of its being placed before the annual general meeting and that Government shall as
soon thereafter as may be cause the same to be laid before both Houses of Parliament or the
Legislature of the State as the case may be.
[31A. Returns and reports - A Warehousing Corporation shall furnish to the appropriate
Government such returns, statistics, accounts and other information with respect to its property or
activities as that Government may, from time to time, require]
(a) Inserted by the Warehousing Corporations (Amendment) Act, 1976 (42 of 1976). S.9
(24-3-1976).