Section 32 in The Industrial Finance Corporation Act, 1948
32. Disposal of profits .-(1) The Corporation shall establish a reserve fund.
(2)After making provision for bad and doubtful debts, depreciation of assets and all other matters which are usually provided for by bankers, the Corporation may out of its net annual profits declare a dividend:Provided that for so long as the reserve fund is less than the paid up share capital of the Corporation and until there has been repaid to the Central Government such sums, if any, as that Government may have paid under the guarantee given in pursuance of section 5 or under any guarantee given in pursuance of sub-section (2) of section 21 [or sub-section (2) of section 27], the rate of such dividend shall not exceed the rate guaranteed by the Central Government under section 5.[* * *] [ Second proviso omitted by Act 74 of 1972, Section 18.][32-A. Special reserve fund .-(1) All dividends accruing on the shares of the Corporation held by the Central Government and the Reserve Bank immediately before the date appointed by the Central Government under sub-section (1) of section 4-A in respect of any completed accounting period, whether declared or not, shall be credited to a special reserve fund.(2)All dividends accruing to the Development Bank shall, instead of being paid to it, be also credited to the said fund until the aggregate of the sums credited to the fund under sub-section (1) and this sub-section exceeds one crore of rupees.(3)The Central Government, the Reserve Bank and the Development Bank only shall have claims to the said fund.][32-B. Benevolent reserve fund .-(1) The Corporation shall establish a special fund, to be called the benevolent reserve fund.(2)To the benevolent reserve fund shall be credited-(a)any part of the annual profit which may, from time to time, be allocated to the fund;(b)all amounts received for the purposes of the fund by way of loans, gifts, grants, donations or benefactions from Government or any other source;(c)income or profits from investments made from the fund;(d)income accruing or arising to the fund by way of interest or otherwise.(3)The benevolent reserve fund shall be used by the Corporation-(a)for meeting the cost of feasibility studies, project reports, market and techno-economic surveys and such other purposes which, in the opinion of the Corporation, may promote the development of industries;(b)in the field of development banking and in financial and industrial management-(i)for undertaking and promoting research;(ii)for training in India or abroad of personnel of financial institutions; and(iii)for creating chairs in universities, academic institutions and research foundations;(c)for assisting projects promoted by technologists and new entrepreneurs-(i)by subsidising the normal lending rate of interest of the Corporation in respect of loans or advances sanctioned to them;(ii)by providing technical and managerial assistance to projects promoted by them especially in less industrially developed regions;(d)for rendering any assistance that may be ancillary or incidental to the aforementioned purposes. ]
