Para 7.3.10 — MSO (Audit)
Original Rule Text
7.3.10 An Audit Board has been set up with effect from 1st April 1969 under the supervision of the Comptroller and Auditor General for undertaking comprehensive appraisals of the functioning of the Central commercial undertakings other than departmental undertakings. The Board reviews, on a selective basis every year, the functioning and performance of the Central Government Companies/Corporations. The concerns selected for comprehensive appraisal should be those that have been functioning at least during the preceding five years or those that present special features requiring to be commented upon. Depending upon the requirements of performance appraisal of the selected undertakings, the Audit Board meets in groups. Each group consists of the Chairman and two whole-time Members who are officers of the Indian Audit and Accounts Department appointed by the Comptroller and Auditor General and two parttime Members appointed by the Government of India after consultation with, and with the concurrence of, the Comptroller and Auditor General.
What This Means
An Audit Board was established in 1969 under the CAG's supervision to conduct comprehensive performance appraisals of Central Government commercial undertakings (excluding departmental undertakings). It selects undertakings that have been operating for at least five years or have special features warranting review. The Board meets in groups, each consisting of a Chairman and two full-time Members from IA&AD (appointed by CAG) and two part-time Members appointed by the Government after consulting the CAG.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit Board established from 1 April 1969 for commercial undertaking appraisals
- 2Reviews Central Government Companies/Corporations on a selective basis each year
- 3Targets undertakings with at least 5 years of operation or special features
- 4Each group has a Chairman, 2 full-time IA&AD members, and 2 part-time government-appointed members
- 5Part-time members require CAG's consultation and concurrence
Practical Example
The Audit Board selects a Central Government steel corporation that has been operating for 12 years for comprehensive appraisal. A group is constituted with a Chairman from IA&AD, two full-time members, and two part-time members (an industry expert and a finance professional appointed by the Government with CAG's concurrence). They review production targets, financial performance, pricing policies, and foreign collaborations over the past three years.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the five-year operating history requirement specified?▼
What is the difference between full-time and part-time members?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.