Para 2.5.22 — MSO (Audit)
Original Rule Text
2.5.22 However, the provisions relating to presentation of annual reports before the appropriate Legislature contained in Section 619A of the Companies Act are not applicable to them.
# Audit of statutory corporations
What This Means
While deemed government companies are subject to the same audit procedures as regular government companies, there is one important exception: the requirement under Section 619A for presenting annual reports before the Legislature does not apply to deemed government companies. This means their audit reports and annual working reports are not automatically laid before Parliament or the State Legislature.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 619A reporting requirements do not apply to deemed government companies
- 2Annual reports of deemed companies are not required to be laid before the Legislature
- 3This is the key distinction between government companies and deemed government companies
- 4All other audit provisions (statutory audit, CAG directions, supplementary audit) still apply
Practical Example
A deemed government company completes its annual audit. While the CAG appoints its statutory auditor and conducts supplementary audit just like any government company, the Government is not required to prepare an annual report on its affairs for Parliament. The company's audit report goes through the regular Companies Act filing process but is not tabled in the Legislature, unlike a regular PSU whose reports must be presented 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
Why are deemed government companies exempt from legislative reporting?▼
Does this mean there is no public accountability for deemed government companies?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.