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Chapter-5 Fund, accounts and audit

23. Fund of the Corporation:

(1) The Corporation shall have a separate fund of its own. All amounts received by the Corporation including loans
and grants shall be credited to the fund, and the expenses to be made on behalf of the Corporation shall also be chargeable on that fund.

(2) All amounts of the fund shall be deposited in the Nepal Rastra Bank or any other bank as permitted by the Government of Nepal.

(3) The Board shall have powers to make such expenses as considered appropriate for the activities authorized pursuant to this Act and the Rules, Bye-laws framed under this Act.

24. To bear liabilities: Any liabilities devolved on by the Government of Nepal or assumed by the Government of Nepal and contracts in relation to the matters set forth in this Act, prior to the establishment of theCorporation, shall be deemed to have been undertaken, assumed or entered into with or by or on behalf of the Corporation to the extent that as set aside by the Government of Nepal for the Corporation.

25. Mode of maintaining accounts: Accounts of incomes and expenses of the Corporation shall be maintained in such form and manner as may be approved by the Government of Nepal.

26. Distribution of profits: The distribution and use of profits made by the Corporation shall be as prescribed.

27. Audit: (1) The accounts of the Corporation shall be audited by a total of Two auditors, consisting of one audited designated by the Government of Nepal and the other selected by the shareholders. The auditor to be selected
by the shareholders shall be selected at the annual general meeting, and the remuneration of the auditor shall also be specified by that meeting. Provided that, one auditor designated by the Government of Nepal shall perform the audit until the provision of the general meeting is made.

(2) If the office of the auditor selected by the general meeting falls vacant for any reason, the Government of Nepal may fill the vacancy until another general meeting is held.

(3) It shall be the duty of the auditors to audit the annual accounts and profit and loss account and related receipts of the Corporation. All records of accounts and books of the Corporation shall be made available to
the auditors. They may, at any reasonable time, inspect and examine any accounts and documents of the Corporation or held by any of its officebearers or employees in any place.

(4) The auditors shall submit one copy of the audit report made by them to the Government of Nepal and the other copy to the annual general meeting of the Corporation, after the provision of the general meeting is made. The report shall clearly state the following matters:

(a) Whether annual accounts and profit and loss account have been so properly and duly maintained, clearly indicating all required matters as to reflect the actual financial condition of the Corporation or not 

(b) Whether the Corporation has provided any such explanation or information as sought by the auditors or
not, and if so provided, whether such explanation or information is satisfactory or not;

(c) Whether the annual accounts and profit and loss accounts submitted are in order or not.

(5) The auditors may submit such proposals as they consider appropriate for the proper arrangement of the Corporation. The Board shall include the proposals so submitted in the agenda of the general meeting.

(6) The Government of Nepal may, at any time, give direction to the auditors to submit to it a report indicating whether the steps being taken by the Corporation are sufficient or not for the proper protection of the shareholders and creditors and whether the manner of maintaining accounts of the Corporation is proper or not.

(7) The Government of Nepal may, based on the report received pursuant to Sub-section (4) or (6), give direction to the Corporation for necessary reform or provision.

 

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