(Contd.)

24.Balance sheet.- Without prejudice to the provisions of the Companies act, 1956 (1 of
1956.),every foreman shall prepare and file with the Registrar within such item as may be
prescribed, abalance sheet as on the last date of each calendar year, or as the case may be
the financial yearof the foreman, and a profit and loss account relating to the year of
account, in the forms set outin Parts I and II of the Schedule or as near thereto as
circumstances admit, in respect of the chitbusiness and audited by auditors qualified to act
as auditors under the Companies act, 1956, orby chit under appointed under section 61:
Provided that where a balance sheet is audited by an auditor qualified to act as auditor
under the Companies Act, 1956 (1 of 1956.), a chit auditor appointed under section 61 shall
have the right to audit the balance sheet at any time if so authorised by the Registrar in
this behalf.
25.Liability of foreman to subscribers.-
(1) Every foreman shall be liable to account to the subscribers for the amounts due to
them.
(2) Where there are more than one foreman in a chit, each one of them jointly and
severally and if the foreman is a firm or other association of individuals each one of the
partners or individuals thereof jointly and severally and if the foreman is a company,
the company as such ,shall be liable to the subscribers in respect of the obligations
arising out of the chit.
26. Withdrawal of foreman.-
(1) No foreman, or where there are more than one foreman in a chit, none of them shall
withdraw form the chit until its termination unless such withdrawal is assented to in writing
by all the non-prized and unpaid prized subscribers and a copy of such assent has been filed
with the Registrar under section 41.
(2) The withdrawal from a chit of any one of the foreman shall not affect the security given
by him under section 20 or section 31.