38Annual report of Director

(1) There shall be attached to every statement of accounts laid before the Board of each Institute, a report by its Director, with respect to—

(a) the state of affairs of such Institute;

(b) the amounts, if any, which it proposes to carry to any surplus reserves in its balance sheet;

(c) the extent to which understatement or overstatement of any surplus of income over expenditure or any shortfall of expenditure over income has been indicated in the auditors report and the reasons for such understatement or overstatement;

(d) the productivity of research projects undertaken by the Institute measured in accordance with such norms as may be specified by any statutory regulatory authority;

(e) appointments of the officers and teachers of the Institute;

(f) benchmark and internal standards set by the Institute, including the nature of innovations in teaching, research and application of knowledge.

(2) The Director shall also be bound to give the complete information and explanations in its report aforesaid on every reservation, qualification or adverse remark contained in the auditors' report.