Section 394 Of Companies Act 2013

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 .