Section 394 Of Companies Act 2013
Updated: Jun 22
Section 394: Annual reports on Government companies
Provisions of Section 394 of the Companies Act 2013 are as follows,
(1) Where the Central Government is a member of a Government firm, it should cause an annual report on the business's operations and affairs to be—
(a) prepared within three months of its annual general meeting, prior to which the Comptroller and Auditor-General of India's comments and the audit report are put under the proviso to section 143's subsection (6); and
(b) presented before both Houses of Parliament as soon as possible after such preparation, together with a copy of the audit report and any comments or supplements to the audit report made by the Comptroller and Auditor-General of India.
(2) Where a State Government is a member of a Government company in addition to the Central Government, that State Government shall cause a copy of the annual report prepared under sub-section (1), as well as a copy of the audit report and the comments on or supplement to the audit report, referred to in sub-section (1), to be laid before the House or both Houses of the State Legislature .