Para 3.13.20 — MSO

Reserves and Reserve Funds

3.13.20 In auditing the transactions connected with Sinking Funds regularly constituted for the redemption of loans raised by the Union and State Governments, Audit has to satisfy itself that credits to these Funds are in accordance with the undertakings given by Government and set forth in the prospectus of the loans and that payments are eventually utilised for the purpose for which the Funds themselves were created.