Section 10(4) in The Banking Companies (Acquisition And Transfer Of Undertakings) Act, 1970
(4)Every auditor of a corresponding 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 all 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 purpose 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.[ Explanation I.-For the purposes of this Act-(a)the balance-sheet shall not be treated as not disclosing a true and fair view of the affairs of the corresponding new bank, and(b)the profit and loss account shall not be treated as not showing a true balance of profit or loss for the period covered by such account, merely by reason of the fact that the balance-sheet or, as the case may be, the profit and loss account does not disclose any matters, which are by the provisions of the Banking Regulation Act, 1949 (10 of 1949), read with the relevant provisions of this Act, or any other Act not required to be disclosed.Explanation II.-For the purposes of this Act the accounts of the corresponding new bank shall not be deemed as having not been properly drawn up on the ground merely that they do not disclose certain matters, if-(i)those matters are such as the corresponding new bank is, by virtue of any provision contained in the Banking Regulation Act, 1949 (10 of 1949), read with the relevant provisions of this Act, or any other Act, not required to disclose; and(ii)the provisions referred to in clause (i) are specified in the balance-sheet and profit and loss account of the corresponding new bank or in the auditor's report.]
