(1) Every Regional Rural Bank shall cause its books to be closed and balanced as on the 3*[31st day of March] 1*[or such other date in each year as the Central Government may, by notification in the Official Gazette, specify] and shall appoint with the approval of the Central Government auditors for the audit of its accounts :
2*[Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provisions as it considers necessary or expedient for the closing and balancing of, or for other matters relating to, the books in respect of the concerned years.]
(2) Every auditor of a Regional Rural Bank shall be a person who is qualified to act as an auditor of a company under section 226 of the Companies Act, 1956 (1 of 1956), and shall receive such remuneration as the Regional Rural Bank may fix with the approval of the Central Government.
(3) Every auditor shall be supplied with a copy of the annual balance-sheet and profit and loss account of the Regional Rural Bank, and a list of all books kept by the Regional Rural Bank, and it shall be the duty of the auditor to examine the balance-sheet and vouchers relating thereto, and, in the performance of his duties, the auditor-
(a) Shall have, at all reasonable times, access to the books, accounts and other documents of the Regional Rural Bank;
(b) May, at the expense of the Regional Rural Bank, employ accountants or other persons to assist him in investigating such accounts; and
(c) May, in relation to such accounts, examine the Chairman or any officer or employee of the Regional Rural Bank.
(4) Every auditor of a Regional Rural Bank shall make a report to that bank upon the annual balance-sheet and accounts and in every such report shall state,-
(a) Whether, in his opinion, the balance-sheet is a full and fair balance-sheet containing all necessary particulars and is properly drawn up so as to exhibit a true and fair view of the affairs of the Regional Rural Bank, and, in case he had called for any explanation or information, whether it has been given and whether it is satisfactory;
(b) Whether or not, the transactions of the Regional Rural Bank, which have come to his notice, have been within the powers of that bank;
(c) Whether or not, the returns received from the offices and branches of the Regional Rural Bank have been found adequate for the purpose of his audit;
(d) Whether the profit and loss account shows a true balance of profit or loss for the period covered by such accounts; and
(e) Any other matter which he considers should be brought to the notice of the Regional Rural Bank.
1*[(1)] Every Regional Rural Bank shall, within 2*[three months from the date of the closure of its accounting year, or such further period, not exceeding three months, as may be permitted by the Reserve Bank], send to each of its shareholders a report as to its working and activities during the accounting year immediately preceding together with a copy of its balance-sheet, profit and loss account and the auditor's report in relation to the accounts of the said accounting year.
3*[(2) The Central Government shall cause every auditor's report and report on the working and activities of each Regional Rural Bank to be laid, as soon as may be after they are recovered, before each House of Parliament.]
After making provisions for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and all other matters for which provision is, under law, necessary or which are usually provided for by banking companies, a Regional Rural Bank may, out of its net profits, declare a dividend.
For the purpose of the Income-tax Act, 1961 (43 of 1961), or any other enactment for the time being in force relating to any tax on income, profits or gains, a Regional Rural Bank shall be deemed to be a co-operative society.
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