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

The Central Government is a member of Rajya Power Ltd, a Government company. Under Section 394, the annual report on its working and affairs must be prepared within three months of which event?

The report must be prepared within three months of the annual general meeting before which the CAG's comments and the audit report are placed under the proviso to Section 143(6). This is the trigger under Section 394(1)(a), not the financial year end.

  1. AThe AGM before which the CAG's comments and the audit report are placed under the proviso to Section 143(6)Correct
  2. BThe close of the financial year of the company
  3. CThe date of the company's incorporation anniversary
  4. DThe date on which the cost audit report is received by the Board

Explanation

Section 394(1)(a) requires preparation within three months of the AGM before which the CAG's comments and the audit report are placed under the proviso to Section 143(6). The financial year end is not the trigger.

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