Section 38(3) in The Maharashtra Non-Trading Corporations Act, 1959
(3)The auditor’s report shall specify all cases of irregular, illegal or improper expenditure, or failure or omission to recover money or other property belonging to the corporation or of loss or waste of money or other property thereof and state whether such expenditure, failure, omission, loss or waste was caused in consequence of a breach of trust or misapplication or any other misconduct on the part of any of the directors, officers, or servants of the corporation.
