(1) The auditor will be appointed by the annual general meeting and his remuneration will be as determined by the same meeting. Such an auditor must have obtained a license to conduct an audit according to the laws of Nepal. However, the audit until the first annual general meeting will be done by an auditor appointed by the Government of Nepal. (3) The auditor shall submit one copy of his audit report to the Government of Nepal and another copy to the general meeting of the company and such report should clearly state the following:- (a) All the necessary matters should be clear so as to show the actual financial status of the company. Annual accounts and profit and loss accounts have not been prepared properly and properly. (b) The company has not provided any explanation or information as requested and if provided, it is not satisfactory. The Government of Nepal can give instructions to the Institute for necessary reforms or arrangements.