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

The Central Government is a member of Bharat Rail Components Ltd, a Government company. Under Section 394, within what period must the Central Government cause the annual report on the working and affairs of the company to be prepared?

The annual report must be prepared within three months of the annual general meeting before which the Comptroller and Auditor-General's comments and the audit report are placed. The time runs from that AGM, not from the financial year end.

  1. AWithin three months of the AGM before which the CAG comments and audit report are placedCorrect
  2. BWithin six months of the close of the financial year
  3. CWithin one year of the close of the financial year
  4. DWithin thirty days of the AGM at which accounts are adopted

Explanation

Section 394(1)(a) requires the annual report to be prepared within three months of the annual general meeting before which the CAG comments and the audit report are placed under the proviso to section 143(6). The period is tied to that AGM, not to the financial year end. The one-year period relates to the general annual report on the Act under section 461.

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