18. Finance of the
Council.- (1) There shall be established a fund under
the management and control of the Council into which shall
be paid all moneys received by the Council and out of which
shall be met all expenses and liabilities properly incurred
by the Council.
(2) The Council may invest any money for the time being standing
to the credit of the fund in any Government security or in
any other security approved by the Central Government.
*[(3) The Council shall keep proper accounts of the fund
distinguishing capital from revenue in the manner prescribed.
(4) The Council shall prepare in the manner prescribed and
approve, prior to the start of the financial year, an annual
financial statement (the budget) indicating all its anticipated
revenues as
well as all proposed expenditures for the forthcoming year.
(5) The annual accounts of the Council shall be prepared in
such manner as may be prescribed and be subject to audit by
a chartered accountant in practice to be appointed annually
by the Council:
Provided that no member of the Council or a person who has
been a member of the Council during the last four years or
a person who is in partnership with such member shall be eligible
for appointment as an auditor under this sub-section:
Provided further that, in the event it is brought to the
notice of the Council that the accounts of the Council do
not represent a true and fair view of its finances, then,
the Council may itself cause a
special audit to be conducted:
Provided also that, if such information, that the accounts
of the Council do not represent a true and fair view of its
finances, is sent to the Council by the Central Government,
then, the Council may, wherever appropriate cause a special
audit or take such other action as it considers necessary
and shall furnish an action taken report on it to the Central
Government.]
*[(5A) As soon as may be practicable at the end of each year,
the Council shall circulate the audited accounts to its members
at least fifteen days in advance and consider and approve
these accounts in a special meeting convened for the purpose.
(5B) The Council shall cause to be published in the Gazette
of India not later than the 30th day of September of the year
next following, a copy of the audited accounts and the Report
of the Council for that year duly approved by the Council
and copies of the said accounts and Report shall be forwarded
to the Central Government and to all the members of the Institute.
(6) The Council may borrow from a scheduled bank, as defined
in the Reserve Bank of India Act, 1934, (2 of 1934.) or from
the Central Government—
(a) any money required for meeting its liabilities on capital
account on the security of the fund or on the security of
any other assets for the time being belonging to it, or
(b) for the purpose of meeting current liabilities pending
the receipt of income by way of temporary loan or overdraft.
*[Sub-Clause (3), (4) & (5) substituted and (5A) &
(5B) inserted by Chartered Accountants (Amendment) Act, 2006,
section 15]
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