[Annual Financial statements.] [Substituted by s. 10(1) of the W.B. Municipal (Amendment) Act, 2006, (West Bengal Act 22 of 2006), w.e.f. 1 10.2006, for ''Annual financial statement'.]-[(1) Within six months of the close of a year, a financial statement for the preceding year in respect of a Municipality shall be prepared in the form and manner prescribed, and presented before a meeting of the Board of Councilors. Financial statement shall consist of a Balance Sheet of the sources and application of funds, Income and Expenditure Account disclosing the surplus (excess of income over expenditure) or deficit (excess of expenditure over income) for the financial year, Receipts and Payments Account (showing the head-wise receipts and payments for the year alongwith balances of cash in hand, cash at bank and cash at treasury) and a Cash Flow Statement (showing the receipts and payments of cash, as per three distinct categories of operating, investing and financing activities). Every such statement shall give a true and correct view of the state of affairs of the Municipality.] [[Substituted by s. 10(2), ibid, w.e.f. 1.10.2006, old section read as :'(1) Within three months of the close of a year, a financial statement for the preceding year in respect of a Municipality shall be prepared in the form and manner presorted, and presented before a meeting of the Board of Councilors.'.]](2)A copy of the financial statement shall be given to the Director of Local Bodies and shall be available for inspection by the members of the public in the manner prescribed.(3)Notwithstanding anything contained in the foregoing provisions of this section, the State Government may, on the prayer of a Municipality, extend the date for [preparation and] [Inserted by s. 10(3) of the W.B. Municipal (Amendment) Act, 2006, (West Bengal Act 22 of 2006), w.e.f. 1.10.2006.] presentation of the financial statement of a Municipality for reasons to be recorded in writing.
