Para 2.5.3 — MSO (Audit)
Original Rule Text
2.5.3 Under Section 619A of the Companies Act, an annual report on the working and affairs of a Government Company is required to be prepared within three months of the holding of the Annual General Meeting and laid, as soon as possible thereafter, before the appropriate legislature together with a copy of the statutory auditors’ report and any comment upon or supplement to that report made by the Comptroller and Auditor General.
What This Means
Under Section 619A of the Companies Act, the Government must prepare an annual report on the working and affairs of every government company within three months of its Annual General Meeting. This report, along with the statutory auditor's report and any comments or supplementary observations from the CAG, must then be laid before the appropriate Legislature (Parliament or State Legislature) as soon as possible.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Annual report on government company must be prepared within 3 months of the AGM
- 2The report covers the working and affairs of the company
- 3Statutory auditor's report must accompany the annual report
- 4CAG's comments or supplementary observations are also included
- 5All documents must be laid before the appropriate Legislature promptly
Practical Example
A government steel company holds its AGM on September 15. The Ministry of Steel must prepare the annual report on the company's operations by December 15 (within three months). This report, along with the chartered accountant's audit report and the CAG's comments highlighting a Rs 100 crore cost overrun on a new plant, are then presented to Parliament during the Budget Session for legislative scrutiny.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the deadline for preparing the annual report?▼
Who prepares this annual report -- the company or the government?▼
What if the CAG has not completed the supplementary audit by the time the report is due?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.