law: Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970  
  
  10.Closure of accounts and disposal of profits.- 
  (1) Every corresponding new bank shall cause its books to be
  
  closed and balanced on the 31st day of December of each year and shall appoint,
  
  with the previous approval of the Reserve Bank, auditors for the audit of its
  
  accounts.
  (2) Every auditor of a corresponding new bank shall be a person
  
  who is qualified to act as an auditor of a company under section 226 of the Companies
  
  Act, 1956, and shall receive such remuneration as the Reserve Bank may fix in
  
  consultation with the Central Government
  (3) Every auditor shall be supplied with a copy of the annual
  
  balance-sheet and profit and loss account and a list of all books kept by the
  
  corresponding new bank, and it shall be the duty of the auditor to examine the
  
  balance-sheet and profit and loss account with the accounts and vouchers
  
  relating thereto, and in the performance of his duties, the auditor-----
  (a) shall have, at all reasonable times,
  
  access to the books, accounts and other documents of the corresponding new
  
  bank.
  (b) may, at the expense of the corresponding
  
  new bank, employ accountants or other persons to assist him in investigating
  
  such accounts, and
  (c) may, in relation to such accounts, examine
  
  the Custodian or any officer or employee of the corresponding new bank.
  (4) Every auditor of a corresp0nding new bank shall make a
  
  report to the Central Government upon the annual balance-sheet and accounts and
  
  in every such report shall state-----
  (a) whether, in his opinion, the balance-sheet
  
  is a full and fair balance-sheet containing al, the necessary particulars and
  
  is properly drawn up so as to exhibit a true and fair view of the affairs of
  
  the corresponding new bank, and in case he had called for any explanation or
  
  information, whether it has been given and whether it is satisfactory;
  (b) whether or not the transactions of the
  
  corresponding new bank, which have come to his notice, have been within the
  
  powers of that bank;
  (c) whether or not the returns received from
  
  the offices and branches of the corresponding new bank have been found adequate
  
  for the purposes of his audit;
  (d) whether the profit and loss account shows
  
  a true balance of profit or loss for the period covered by such account; and
  (e) any other matter which he considers should
  
  be brought to the notice of the Central Government.
  (5) The report of the auditor shall be verified, signed and
  
  transmitted to the Central Government.
  (6) The auditor shall also forward a copy of the audit report to
  
  the corresponding new bank and to the Reserve Bank.
  (7) After making provision for bad and doubtful, debts,
  
  depreciation in assets, contributions to staff and superannuating funds and all
  
  other matters for which provision is necessary under any law, or which are
  
  usually provided for by banking companies, a corresp9nding new bank shall
  
  transfer the balance of profits to the Central Government.
  (8) The Central Government shall cause every auditor's report
  
  and report on the working and activities of each corresponding new bank to be
  
  laid for not less than thirty days before each House of Parliament as soon as
  
  may be after each such report is received by the Central Government.