(2)The Directors’ Responsibility Statement referred to in clause (b) of sub-section (1) shall state that—(a)in the preparation of the annual accounts, the standards referred to in section 24B were followed, along with proper explanation relating to material departures;(b)accounting policies were selected and applied consistently and the judgements made and estimates were reasonable and prudent, so as to give a true and fair view of the state of affairs of the Corporation at the end of the financial year and of the profit and loss of the Corporation for that period;(c)proper and sufficient care for the maintenance of adequate accounting records was taken in accordance with the provisions of this Act for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities;(d)the annual accounts were prepared on a going concern basis;(e)the vigilance administration referred to in clause (h) of sub-section (1) of section 8 of the Central Vigilance Commission Act, 2003 was in operation in the Corporation under the superintendence of the Central Vigilance Commission, and in addition, internal financial controls to be followed by the Corporation had been laid down and were operating effectively; and(f)proper systems were devised to ensure compliance with the provisions of applicable laws and were operating effectively.Explanation.—For the purposes of this sub-section, the expression “internal financial controls” means the policies and procedures adopted for ensuring the orderly and efficient conduct of the Corporation’s business, including adherence to its policies, safeguarding of its assets, prevention and detection of errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.
