Section 30:
Audit.
1[(1) The balance-sheet and profit and loss account prepared in accordance with
section 29 shall be audited by a person duly qualified under any law for the time being in force to be an
auditor of companies.]
2[(1A) Notwithstanding anything contained in any law for the time being in force or in any contract
to the contrary, every banking company shall, before appointing, re-appointing or removing any auditor
or auditors, obtain the previous approval of the Reserve Bank.
(1B) Without prejudice to anything contained in the Companies Act, 1956 (1 of 1956), or any other
law for the time being in force, where the Reserve Bank is of opinion that it is necessary in the public
interest or in the interest of the banking company or its depositors so to do,3[it may at any time by order
order direct that a special audit of the banking company's accounts, for any such transaction or class of
transactions or for such period or periods as may be specified in the order, shall be conducted and may
by the same or a different order either appoint a person duly qualified under any law for the time being
in force to be an auditor of companies or direct the auditor of the banking company himself to conduct
such special audit] and the auditor shall comply with such directions and make a report of such audit to
the Reserve Bank and forward a copy thereof to the company.
(1C) The expenses of, or incidental to 4[the special audit] specified in the order made by the
Reserve Bank shall be borne by the banking company.]
(2) The auditor shall have the powers of, exercise the functions vested in, and discharge the duties
and be subject to the liabilities and penalties imposed on, auditors of companies by 5[section 227 of the
Companies Act, 1956 (1 of 1956)]. 6[, and auditors, if any, appointed by the law establishing,
constituting or forming the banking company concerned].
(3) In addition to the matters which under the aforesaid Act the auditor is required to state in his
report, he shall, in the case of a banking company incorporated 7[in India], state in his report,--
(a) whether or not the information and explanations required by him have been found to be
satisfactory;
(b) whether or not the transactions of the company which have come to his notice have been
within the powers of the company;
(c) whether or not the returns received from branch offices of the company have been found
adequate for the purposes of his audit;
(d) whether the profit and loss account shows a true balance 8[of profit or loss] for the period
covered by such account;
(e) any other matter which he considers should be brought to the notice of the share holders of
the company.
Notes:
1. Subs. by Act 58 of 1968, s. 8, for sub-section (1) (w.e.f. 1-2- 1969).
2. Ins. by s. 8, ibid. (w.e.f. 1-2-1969).
3. Subs. by Act 66 of 1988, s. 9, for certain words (w.e.f. 30-12-1988).
4. Subs. by s. 9, ibid., for "the audit of the transaction or class of transactions" (w.e.f. 30-12-1988).
5. Subs. by Act 58 of 1968, s. 8, for "section 145 of the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 1-2-1969).
6. Ins. by Act 66 of 1988, s. 9 (w.e.f. 30-12-1988).
7. Subs. by Act 20 of 1950, s. 3, for "in a State" (w.e.f. 18-3-1950).
8. Subs. by Act 55 of 1963, s. 15, for "of profit and loss" (w.e.f. 1-2-1964).