(1) The annual accounts and balance-sheet of the University shall be prepared under the direction of the Executive Council and all amounts accruing by the University from whatever source and all amounts disbursed or paid shall be entered in the accounts maintained by the University.
(2) A copy of the annual accounts and the balance-sheet shall be submitted to the Government which shall cause the same to be audited.
(3) The annual accounts and the balance-sheet audited shall be printed and copies thereof shall together with the copies of the audit report be submitted by the Executive Council to the Government.
(4) The Executive Council shall also prepare, before such date as may. be prescribed, the budget for the ensuing year.
(5) Every item of new expenditure above such amounts, as may be prescribed. Which is proposed to be included in the budget shall be referred by the Executive Council to the Finance Committee which may make recommendations thereon.
(6) The Executive Council shall after considering the recommendations, if any, of the Finance Committee approve the budget finally.
(7) It shall not be lawful for the Vice-Chancellor or the Executive Council to incur any expenditure-
(a) either not sanctioned in the budget or in the case of funds granted to the University, subsequent-to the sanction of the budget, by the Government or the Government of India or the University Grants Commission or any international organization or Foundation save in accordance with the terms of such grant:
Provided that notwithstanding anything in sub-section (7) of section 13, the Vice-Chancellor may in the case of fire, flood, excessive rainfall or other sudden or unforeseen circumstances, incur non- recurring expenditure not exceeding rupees one lakh not sanctioned in the budget and he shall immediately inform the Government in respect of all such expenditure;
(b) on any litigation in opposition to any order-of the Chancellor or of the Government purporting to be made under this Act.