Chit Funds Act, 1982 - Chapter III
Section 24 of the Chit Funds Act, 1982 - Balance Sheet
Section 24 prescribes the annual financial statement and audit obligation of a chit foreman. It requires preparation and filing of a balance sheet and a profit and loss account for the chit business, in the prescribed statutory form, together with the required audit.
What Section 24 requires
- Every foreman must prepare a balance sheet for the chit business.
- The balance sheet is drawn up as on the last date of the calendar year or, where applicable, the foreman's financial year.
- A profit and loss account relating to the relevant year of account must also be prepared.
- The statements must substantially follow Parts I and II of the Schedule to the Act.
- The accounts must be audited by a qualified auditor contemplated by the section or by a chit auditor appointed under Section 61.
- The balance sheet and profit and loss account must be filed with the Registrar within the time prescribed by the applicable rules.
Section 24 - statutory text
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 time as may be prescribed, a balance-sheet as on the last date of each calendar year, or, as the case may be, the financial year of the foreman, and a profit and loss account relating to the year of account, in the forms set out in Parts I and II of the Schedule, or as near thereto as circumstances admit, in respect of the chit business and audited by auditors qualified to act as auditors under the Companies Act, 1956 (1 of 1956), or by a chit auditor 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.
Meaning of important terms and provisions
Foreman
The foreman is the person who, under the chit agreement, is responsible for conducting the chit. Section 24 places the financial reporting obligation directly on the foreman.
Registrar
The Registrar is the authority appointed for administration of the Chit Funds Act in the relevant jurisdiction. The filing period and procedure may depend on the rules and notifications applicable in the State or Union Territory where the chit is registered.
Section 61 - chit auditors
Section 61 empowers the State Government to appoint chit auditors for auditing chit accounts. The proviso to Section 24 also preserves the power of an authorised chit auditor to audit a balance sheet even where it has already been audited by an auditor referred to in Section 24.
Parts I and II of the Schedule
Section 24 requires the balance sheet and profit and loss account to be prepared in the forms set out in Parts I and II of the Schedule, or as near to those forms as the circumstances permit. This links the foreman's annual accounts directly to the statutory reporting format.
Practical compliance significance
Section 24 is an annual accountability provision. It enables the Registrar to examine the financial position and operating result of the chit business and provides an audited financial record relevant to regulatory supervision and subscriber protection. A foreman should therefore check the Central Act together with the rules, forms, filing periods and Registrar directions applicable in the particular State or Union Territory.
Official legal resources
For the authoritative Act text, amendments, schedules and available subordinate legislation, refer to the official Government resources below. The statutory wording should be verified from the latest official text before professional reliance or filing.
Last reviewed: 15 September 2026. This page is a general legal information resource. State-specific chit fund rules and notifications should be checked for filing deadlines, forms and local procedure.