(1) The accounts of the Corporation shall be audited by a total of Two auditors, consisting of One auditor 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 office- bearer or employee 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 at 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.