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

Under Section 394(1)(b), once the Central Government has prepared the annual report on a Government company in which it is a member, what must it do as soon as may be after preparation?

The Central Government must lay the annual report before both Houses of Parliament, together with a copy of the audit report and the comments upon or supplement to it made by the Comptroller and Auditor-General of India, as soon as may be after preparing it.

  1. AFile it with the Registrar and publish it on the company website only
  2. BLay it before both Houses of Parliament with the audit report and the CAG's comments or supplementCorrect
  3. CSend it to the Tribunal for approval before it is made public
  4. DLay it before the Lok Sabha alone, with the audit report but without CAG comments

Explanation

Section 394(1)(b) requires the report to be laid before both Houses of Parliament together with a copy of the audit report and the comments upon or supplement to the audit report made by the CAG. Laying it before only one House, or omitting the CAG comments, does not satisfy the section.

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