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Company Law and Practice · Annual Report - Concepts

Annual Report by Central Government under Section 461

Updated 11 October 2026 · Fact-checked

Section 461 of the Companies Act, 2013 requires the Central Government to prepare a general annual report on the working and administration of the Act. It must be laid before each House of Parliament within one year of the close of the year to which the report relates. Answer by stating the duty, the time limit and the conclusion.

Understand Annual Report by Central Government (Section 461)

The Companies Act, 2013 is administered by the Central Government through the Ministry of Corporate Affairs and other authorities. Parliament passed the Act, so it needs a way to see how the law is working. Section 461 gives that route: a yearly report.

The section places the duty on the Central Government. It must cause a general annual report to be prepared. The report covers the working and administration of this Act. It is not about one company. It is about how the whole Act has operated in the year.

The report must be laid before each House of Parliament, that is, the Lok Sabha and the Rajya Sabha. The time limit is within one year of the close of the year to which the report relates. The clock starts when the reporting year closes, not when the report is finished.

Do not mix this up with Section 394. Section 394 deals with the annual report on a Government company, where the Central Government is a member. Section 461 is a report on the Act itself. The text of Section 461 does not list the contents of the report beyond the working and administration of the Act, so do not invent a list of items.

Key rules to remember

Duty under Section 461
Central Government → causes a general annual report on the working and administration of the Act to be prepared and laid before each House of Parliament
The duty is mandatory ("shall") and rests on the Central Government.
Time limit
Laying before Parliament: within 1 year of the close of the year to which the report relates
Counted from the close of the reporting year.
Where it is laid
Each House of Parliament = Lok Sabha and Rajya Sabha
Both Houses, not only one.
Contrast with Section 394
Section 461: report on the Act | Section 394: report on a Government company
Section 394 report is prepared within three months of the AGM where CAG comments and audit report are placed.

How to solve Annual Report by Central Government (Section 461) questions

Use this method for any question on the annual report under Section 461, whether it is a short note or a case-based question.

  1. 1Identify the section. Confirm the question is about the report on the working and administration of the Act, not a Government company report or a company's own annual report.
  2. 2State the duty: the Central Government shall cause a general annual report to be prepared.
  3. 3State the subject matter: the working and administration of the Companies Act, 2013.
  4. 4State where and when it is laid: before each House of Parliament within one year of the close of the year to which the report relates.
  5. 5Apply the facts. Work out the close of the reporting year and add one year to find the last date.
  6. 6Compare the date of laying with the deadline.
  7. 7Write a clear conclusion citing Section 461.

Quickest way: Three-point recall for Section 461

When to use it: Use when you have a 3 to 5 mark short note or a one-line question with little time.

  1. Who: Central Government.
  2. What: general annual report on the working and administration of the Act.
  3. Where and when: laid before each House of Parliament within one year of the close of the year to which it relates.
  4. Add one line contrasting with Section 394 if space allows.

Common mistakes in Annual Report by Central Government (Section 461)

  • Saying the report is laid within one year of the date it is prepared.

    Students read the time limit loosely.

    Fix: Write that the one year runs from the close of the year to which the report relates.

  • Saying the report is laid only before the Lok Sabha.

    Students link money and accountability to the Lok Sabha.

    Fix: The section says each House of Parliament, so both Houses.

  • Confusing Section 461 with Section 394.

    Both are annual reports by the Central Government.

    Fix: Section 461 covers the working of the whole Act. Section 394 covers a Government company where the Central Government is a member.

  • Listing detailed contents of the report as if the section prescribes them.

    Students borrow content lists from other reports.

    Fix: Say the report covers the working and administration of the Act, and avoid inventing items.

  • Saying a company or the Registrar prepares the report.

    Students think of company filings.

    Fix: The duty is cast on the Central Government.

Worked examples

Example 1

State the duty of the Central Government under Section 461 of the Companies Act, 2013 regarding an annual report. Within what time must it be laid before Parliament?

Show the solution
  1. Provision: Section 461 says the Central Government shall cause a general annual report on the working and administration of the Act to be prepared.
  2. The report must be laid before each House of Parliament.
  3. Time limit: within one year of the close of the year to which the report relates.

Answer: Under Section 461, the Central Government must prepare a general annual report on the working and administration of the Act and lay it before each House of Parliament within one year of the close of the year to which the report relates.

Example 2

A report on the working of the Companies Act, 2013 relates to the year ending 31 March 2026. By what date must the Central Government lay it before both Houses of Parliament under Section 461?

Show the solution
  1. Provision: the report must be laid within one year of the close of the year to which it relates.
  2. Facts: the year closes on 31 March 2026.
  3. Add one year: 31 March 2027.
  4. Both Houses must receive it by then.

Answer: The report must be laid before each House of Parliament within one year of 31 March 2026, that is, by 31 March 2027, as required by Section 461.

Exam tips

  • Quote the key words: general annual report, working and administration of this Act, each House of Parliament, within one year of the close of the year.
  • In date problems, always start from the close of the reporting year, not the date of preparation.
  • Write one line distinguishing Section 461 from Section 394 to show you know the difference.
  • Keep the answer short. The section has a single rule, so extra detail can introduce errors.
  • End with a conclusion that cites Section 461.

Practice questions from Annual Report - Concepts

Annual Report by Central Government (Section 461) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Annual Report by Central Government (Section 461): frequently asked questions

What does Section 461 of the Companies Act, 2013 provide?

It requires the Central Government to cause a general annual report on the working and administration of the Act to be prepared. The report must be laid before each House of Parliament.

What is the time limit for laying the annual report before Parliament under Section 461?

It must be laid within one year of the close of the year to which the report relates. For a report on the year ending 31 March 2026, the limit is 31 March 2027.

Is Section 461 the same as Section 394?

No. Section 461 covers the working and administration of the whole Act. Section 394 covers the annual report on a Government company where the Central Government is a member.

Who prepares the report under Section 461?

The Central Government causes it to be prepared. It is not a company-level report.