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Section 27
Audit
: (1) The audit of the Institute will be done by two auditors, one appointed by the Government of Nepal and one elected by the shareholders' meeting. Auditors elected by the shareholdings will be elected at the annual general meeting and the auditors' remuneration will also be fixed at the same meeting. But until the arrangement of the general meeting, only one auditor appointed by the government of Nepal will conduct the audit of the institute.
(2) If the auditor chosen by the shareholders becomes vacant for any reason, the Government of Nepal may fill the vacancy until the next general meeting.
(3) Auditors shall have the duty to audit the annual accounts and profit and loss accounts of the company and the related compensations. The auditor will be given a list of all the accounts in the institution. They can inspect the account books and documents held by officials or other employees at any place of the institute at any reasonable time.
(4) The auditors shall submit one copy of their report on the annual accounts and profit and loss account to the Government of Nepal and the other copy to the general meeting of the company after the arrangements have been made. The following things should be clearly mentioned in the report:-
(a) The annual accounts and profit and loss accounts have not been prepared properly with all the necessary details clearly showing the real financial status of the company.
(b) The institute has not provided any explanation or information requested by the examiner and if provided, it is not satisfactory.
(c) The submitted annual accounts and profit and loss accounts are not formal.
(5) The auditors may submit such proposals as they deem fit for the proper management of the corporation. The proposals submitted in that way will be included in the agenda of the general meeting by the committee.
(6) The Government of Nepal may direct the auditors at any time to submit a report to them on whether the steps taken by the corporation for the proper protection of shareholders and creditors are sufficient and whether the accounting method of the corporation is correct.
(7) On the basis of the report received under sub-section (4) or (6), the Government of Nepal may direct the Institute for necessary improvements or arrangements.
(2) If the auditor chosen by the shareholders becomes vacant for any reason, the Government of Nepal may fill the vacancy until the next general meeting.
(3) Auditors shall have the duty to audit the annual accounts and profit and loss accounts of the company and the related compensations. The auditor will be given a list of all the accounts in the institution. They can inspect the account books and documents held by officials or other employees at any place of the institute at any reasonable time.
(4) The auditors shall submit one copy of their report on the annual accounts and profit and loss account to the Government of Nepal and the other copy to the general meeting of the company after the arrangements have been made. The following things should be clearly mentioned in the report:-
(a) The annual accounts and profit and loss accounts have not been prepared properly with all the necessary details clearly showing the real financial status of the company.
(b) The institute has not provided any explanation or information requested by the examiner and if provided, it is not satisfactory.
(c) The submitted annual accounts and profit and loss accounts are not formal.
(5) The auditors may submit such proposals as they deem fit for the proper management of the corporation. The proposals submitted in that way will be included in the agenda of the general meeting by the committee.
(6) The Government of Nepal may direct the auditors at any time to submit a report to them on whether the steps taken by the corporation for the proper protection of shareholders and creditors are sufficient and whether the accounting method of the corporation is correct.
(7) On the basis of the report received under sub-section (4) or (6), the Government of Nepal may direct the Institute for necessary improvements or arrangements.