Para 2.5.20 — MSO (Audit)
Original Rule Text
2.5.20 Major irregularities relating to government companies noticed in the course of audit are commented upon in the Report of the Comptroller and Auditor General, which also includes reviews on the performance of selected companies.
- Audit of deemed government companies
What This Means
Major irregularities discovered during the audit of government companies are included in the CAG's Report to Parliament or the State Legislature. This report not only highlights specific financial irregularities but also contains performance reviews of selected companies, evaluating how well they have achieved their operational objectives and used public resources.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Major audit irregularities in government companies are reported in the CAG's Report
- 2The CAG's Report is submitted to Parliament or State Legislature
- 3Performance reviews of selected companies are included in the Report
- 4Both financial irregularities and operational performance are covered
- 5This ensures public accountability for government company operations
Practical Example
The CAG's annual report for a particular year includes a performance review of a government airline company showing that its flight cancellation rate was 15% (against industry average of 3%), resulting in revenue loss of Rs 800 crore. The report also highlights that Rs 200 crore was spent on aircraft maintenance contracts without competitive bidding. These findings trigger a review by the Committee on Public Undertakings in Parliament.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Which parliamentary committee examines CAG's reports on government companies?▼
How are companies selected for performance review?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.