The Jammu and Kashmir Industrial Relations Rules, 2026
Rule 9. Safe Custody of the funds of the Trade Union and Annual audit
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under clause (j) of section 7.- (1) The funds of the registered trade union shall be deposited in any scheduled bank in the name of the union:
Provided that 2% of the total funds available with the Union shall be kept at the disposal of the three executive members, namely the President, Secretary and Cashier, for meeting any exigency pertaining to the routine affairs of the said Union."
2) Auditors. The annual audit of the accounts of any registered Trade Union shall be conducted by an auditor authorized to audit the accounts of companies under provision of Section 139 read with section 141 of the Companies Act, 2013 (18 of 2013) or under any other law for the time being in force governing the appointment and eligibility auditors.
3) Exception. —Notwithstanding anything contained in these rules, no person, who, at any time during the year, was entrusted with any part of the funds or securities belonging to the Trade Union shall be eligible to audit the accounts of the Union.
3) Audit of funds.—The auditor or auditors appointed in accordance with these rules shall be given access to all the books of the Trade Union and shall verify the annual return with the accounts and vouchers relating thereto and shall thereafter sign the auditor's declaration appended in (Form-II), indicating separately on that form under his signature or their signatures a statement showing in what respect he or they find the return to be incorrect, unvouched or not in accordance with the Act. The particulars given in this statement shall indicate: — i.every payment which appears to be unauthorized by the rules of Trade Union or contrary to the provisions of the Act; ii. the amount of any deficiency or loss which appears to have been incurred by the negligence or misconduct of any person; ili. the amount of any sum which ought to have been but is not brought to account by any person.
4) Audit of separate fund to be constituted under sub-section (2) of section 15. The audit of the separate fund of a registered Trade Union shall be carried out with the audit of the general account of the Trade Union by the same auditor or auditors.