27. Small Industries General Fund.—All receipts of the Small Industries Bank other than those
which are to be credited to the Small Industries Development Assistance Fund under this Act shall be
credited to a fund to be called the Small Industries General Fund and all payments by the Small Industries
Bank, other than those which are to be debited to the Small Industries Development Assistance Fund,
shall be made out of the Small Industries General Fund.
28. Preparation of accounts and balance-sheet.—(1) The balance-sheet and accounts of the Small
Industries Bank shall be prepared in such form and manner as may be prescribed.
(2) The Board shall cause the books and accounts of the Small Industries Bank to be closed and
balanced as on the 31st day of March each year or such other date, as the 2
[Board] may specify.
29. Disposal of profits accruing to Small Industries General Fund.—(1) The Small Industries
Bank may establish a reserve fund to which may be transferred such sums as that Bank may deem fit out
of the annual profits accruing to the Small Industries General Fund.
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[(2) After making provision 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 profits to such other
reserves or funds as may be considered appropriate, the Board may, out of its net profits, propose a
dividend.]
30. Audit.—4
[(1)The accounts of the Small Industries Banks shall be audited by auditors duly
qualified to act as auditors under sub-section (1) of section 226 of the Companies Act, 1956 (1 of 1956),
who shall be appointed by the Small Industries Bank 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 Small Industries
Bank 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 Small Industries Bank and shall at all
reasonable times have access to the books, accounts, vouchers and other documents of the Small
Industries Bank.
(3) The auditors may, in relation to such accounts, examine any Director or any officer or other
employee of the Small Industries Bank and shall be entitled to require from the Board or officers or other
employees of the Small Industries Bank such information and explanation as they may think necessary for
the performance of their duties.
(4) The auditors shall make a report to the Small Industries Bank 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 Small Industries Bank and in case they had
called for any explanation or information from the Board or any officer or other employee of the Small
Industries Bank whether it has been given and whether it is satisfactory.
1. The words “, on the recommendation of the Development Bank” omitted by Act 7 of 2000, s. 16 (w.e.f. 27-3-2000).
2. Subs. by s. 17, ibid., for “Development Bank” (w.e.f. 27-3-2000).
3. Subs. by s. 18, ibid., for sub-section (2) (w.e.f. 27-3-2000).
4. Subs. by s. 19, ibid., for sub-section (1) (w.e.f. 27-3-2000).
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(5) The Small Industries Bank shall furnish to the Central Government 1
*** 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 auditors’ report and a report of the working of the Small Industries Bank 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.
31. Saving.—Save as otherwise provided in sub-section (4) of section 25, nothing contained in this
Chapter shall apply to the Small Industries Development Assistance Fund.