(1) In place of the cadres of the Indian Administrative Service and the Indian Police Service existing in the State of Madras immediately before the appointed day, there shall, as from that day, be two separate cadres, one for the State of Andhra and the other for the State of Madras, in respect of each of the Services.
     (2) The President shall, by order, determine the strength and composition of, and the allocation of individual officers, to the said cadres for each of the States of Andhra and Madras.
     (3) Every officer allocated under sub-section (2) to the cadre for the State of Andhra who immediately before the appointed day is serving in connection with the affairs of the State of Madras shall,—
         (a) if immediately before the appointed day he is holding any post in any area which on that day falls in the State of Andhra, be as from that day, deemed to have been duly appointed to that post by the Government of Andhra; and
         (b) if immediately before the appointed day he is not holding any post in any such area, be appointed by the Government of Andhra to a post in connection with the affairs of that State.