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CS Executive · Company Law and Practice · Annual Report - Concepts

The Central Government holds shares in Bharat Power Ltd, a Government company. Its AGM, at which the CAG comments and audit report were placed, was held on 30 September. Under the Companies Act, 2013, the Central Government must cause an annual report on the working and affairs of the company to be prepared within what period?

The report must be prepared within three months of the annual general meeting before which the CAG comments and audit report are placed. This is the section 394 rule for Government companies, distinct from the one-year rule for the general report under section 461.

  1. AWithin one year of the AGM
  2. BWithin three months of that AGMCorrect
  3. CWithin thirty days of that AGM
  4. DWithin six months of the close of the financial year

Explanation

Section 394(1)(a) requires the report on the working and affairs of the Government company to be prepared within three months of the AGM before which the CAG comments and audit report are placed. The one-year period belongs to the general report under section 461, so that option is wrong.

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