Companies Act Section 394 — Annual reports on Government companies
CHAPTER XXIII GOVERNMENT COMPANIES
Commercial / Corporate
Summary
Sub-section (1) states that when the Central Government is a member of a Government company, it must arrange for an annual report on that company's working and affairs to be prepared within three months of the company's annual general meeting. This preparation must happen after the comments given by the Comptroller and Auditor-General of India and the audit report are placed before the meeting, as specified under the proviso to sub-section (6) of section 143.
Under clause (b) of sub-section (1), as soon as possible after the annual report is prepared, the Central Government must lay it before both Houses of Parliament. This must be done together with a copy of the audit report and any comments upon or supplement to the audit report made by the Comptroller and Auditor-General of India.
Sub-section (2) applies when a State Government is also a member of the Government company, in addition to the Central Government. In that case, the State Government must cause a copy of the annual report prepared under sub-section (1) to be laid before the House or both Houses of the State Legislature, along with a copy of the audit report and the comments upon or supplement to the audit report referred to in sub-section (1).
Official Text
(1) Where the Central Government is a member of a Government company, the Central Government shall cause an annual report on the working and affairs of that company to be—
(a) prepared within three months of its annual general meeting before which the comments given by the Comptroller and Auditor-General of India and the audit report is placed under the proviso to sub-section (6) of section 143; and
(b) as soon as may be after such preparation, laid before both Houses of Parliament together with a copy of the audit report and comments upon or supplement to the audit report, made by the Comptroller and Auditor-General of India.
(2) Where in addition to the Central Government, any State Government is also a member of a Government company, that State Government shall cause a copy of the annual report prepared under sub-section (1) to be laid before the House or both Houses of the State Legislature together with a copy of the audit report and the comments upon or supplement to the audit report referred to in sub-section (1).