Para 2.5.19 — MSO (Audit)
Original Rule Text
2.5.19 Under Section 619A of the Companies Act, 1956, the statutory auditors’ report on each government company and any comments upon or supplement to that report made by the Comptroller and Auditor General have to be laid before Parliament or the State/Union Territory Legislature, as the case may be, along with the annual report on the working and affairs of the company prepared by the Government under the provisions of that Section.
What This Means
Under Section 619A of the Companies Act, the statutory auditor's report on each government company, along with any comments or supplementary observations made by the CAG, must be presented before Parliament or the State/Union Territory Legislature. This is done alongside the annual report on the company's working and affairs, which the Government prepares under the same section. This ensures legislative oversight of government companies.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Statutory auditor's report must be laid before Parliament or State Legislature
- 2CAG's comments or supplementary notes accompany the statutory auditor's report
- 3An annual report on the company's working and affairs is also presented
- 4The annual report is prepared by the Government under Section 619A
- 5This mechanism ensures parliamentary oversight of public sector companies
Practical Example
After completing the audit of Coal India Limited, the statutory auditor's report and CAG's supplementary comments highlighting irregularities in coal allocation contracts are compiled. The Ministry of Coal prepares the annual report on the company's operations. All three documents are then laid before both Houses of Parliament, where the Public Accounts Committee may examine the irregularities and call for explanations from the management.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who prepares the annual report on a government company's affairs?▼
Which legislative body reviews the audit report?▼
Is there a time limit for presenting these reports?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.