(1) The University shall maintain proper accounts including income and expenditure statements, internal audit report and statement audited by internal auditor specifying investments and other relevant records and prepare its annual statement of accounts including the balance sheet in such form and as per such accounting standard as may be specified by notification by the State Government in consultation with the Principal Director of State Audit and Accounts Department.
(2) Where the statement of income and expenditure and the balance sheet of the University do not comply with the accounting standards, the University shall disclose in its statement of income and expenditure and balance sheet, the following, namely:-
(a) The deviation from the accounting standards;
(b) The reasons for such deviation; and
(c) The financial effect, if any, arising out of such deviation.
(3) The Annual Accounts so audited shall be placed before the Audit Committee and the Board of Governors along with audit report and thereafter transmitted annually to the State Government with comments before the end of September each year. The State Government shall lay the same before both the Houses of the State Legislature in accordance with such procedure as may be laid down by it.
(4) The statement of accounts referred to in sub-section (1) shall on its approval by the Board, be published on the website of the University.
(5) The University shall, where its total income as computed under the Income Tax Act without giving effect to the provisions of sections 11 and 12 of that Act exceeds the maximum amount which is not chargeable to income tax in any previous year, get its accounts for that year audited by an accountant as defined in the Explanation to subsection (2) of section 288 of the Income Tax Act and furnish along with its return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed, in accordance with clauses (b) and (ba) of sub-section (1) of section 12A of the Income Tax Act.
(6) The University shall utilize its income and movable and immovable property only for the furtherance of its objects, shall not invest or deposit any income accumulated or set apart for application to charitable purpose in India in any form or mode other than those specified in sub-section (3) of section 11 of the Income Tax Act and shall not distribute its income or property to any person by way of profit, dividend and interest or in any other manner.