{"id":5291,"date":"2020-03-24T17:40:03","date_gmt":"2020-03-24T12:10:03","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5291"},"modified":"2020-12-10T18:29:40","modified_gmt":"2020-12-10T12:59:40","slug":"government-companies-annual-reports","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/government-companies-annual-reports\/","title":{"rendered":"Government Companies Annual Reports: A Complete Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Company is a voluntary association of persons who come together to carry on some business and share profits after <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company registration<\/strong><\/a>. There are different types of companies specified under the <em><strong>Companies Act, 2013<\/strong><\/em><sup><a href=\"http:\/\/www.mca.gov.in\/MinistryV2\/companiesact2013.html\"><strong>[1]<\/strong><\/a><\/sup><strong>,<\/strong> and Government Companies is one of them. The Government Companies are owned and managed by the Central and State Government or both. The Government Companies under <strong><em>Section 394<\/em><\/strong> are directed to place their Annual Reports before the Parliament or State Government. In the article, we will discuss the overview of the Government Companies Annual Reports.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/government-companies-annual-reports\/#What_is_a_Government_Company\" >What\nis a Government Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/government-companies-annual-reports\/#What_are_the_Features_of_Government_Companies\" >What are the Features of Government Companies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/government-companies-annual-reports\/#What_are_the_provisions_Governing_the_Government_Companies_Annual_Report\" >What\nare the provisions Governing the Government Companies Annual Report?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/government-companies-annual-reports\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Government_Company\"><\/span>What\nis a Government Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nGovernment Company is defined under the <strong><em>Companies Act, 2013, under Section 2(45)<\/em><\/strong>\nof the Act. <strong><em>The Company in which not less than 51% of the paid-up share capital is\nheld by:<\/em><\/strong> <\/p>\n\n\n\n<ul><li>The\nCentral Government, or<\/li><li>The\nState Government, or<\/li><li>Partly\nby the Central Government partly by one or more State Government(s), or<\/li><li>Includes\nthe Company which is a Subsidiary Company of such Government Company.<\/li><\/ul>\n\n\n\n<p>The\nSubsidiary Company of a government company should also be considered as a\nGovernment Company. The main objective of the Government Company is to gain\nmomentum in the growth of the nation. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Features_of_Government_Companies\"><\/span>What are the Features of Government Companies?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The different features of the Government Company are as follows:<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-46.png\" alt=\"features of the Government Company\" class=\"wp-image-5292\" width=\"563\" height=\"339\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-46.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-46-300x181.png 300w\" sizes=\"(max-width: 563px) 100vw, 563px\" \/><\/figure><\/div>\n\n\n\n<ul><li>It\nis a separate legal entity.<\/li><li>The\nincorporation of Government Companies is under Companies Act, 2013.<\/li><li>The\nmanagement and control of Government Companies are under the Companies Act,\n2013.<\/li><li>The\nfunding of Government Companies is received from the government shareholdings\nand certain other private shareholdings.&nbsp;\n<\/li><li>The\nauditing of the Government Companies is done by the agency appointed by the\nCentral Government. The agency is the Comptroller and Auditor General of India\n(CAG).<\/li><li>The\nBoard of Directors manages the Government Companies. The Central Government\nappoints the Board of Directors.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_provisions_Governing_the_Government_Companies_Annual_Report\"><\/span>What\nare the provisions Governing the Government Companies Annual Report?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Under the Companies Act, 2013, the following provisions provide for the Government Companies Annual Report: <\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-47.png\" alt=\"provisions provide for the Government Companies Annual Report\" class=\"wp-image-5293\" width=\"547\" height=\"319\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-47.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-47-300x175.png 300w\" sizes=\"(max-width: 547px) 100vw, 547px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\">Section\n394 <\/h4>\n\n\n\n<p><strong><em>Section 394 of the Companies Act, 2013,<\/em><\/strong> states the provision for presenting of\nGovernment Companies Annual Report by the Government Companies. The Central\nGovernment will direct the CAG to direct and administer the accounts of the\nGovernment Companies. The CAG then appoints an Auditor to manage the\nperformance and functioning of the Government Companies. The CAG appoints the\nAuditor to manage the financial functioning of the Company. <\/p>\n\n\n\n<p><strong><em>The CAG can conduct supplementary test audits by the persons authorised by the CAG as per Section 143 of the Companies Act, 2013.<\/em><\/strong> The Auditor of the Government Companies should submit a copy of Government Companies Annual Reports to the CAG for any comments or supplements. The comments by CAG should be made within 60 days of the date of receipt of the <a href=\"https:\/\/corpbiz.io\/tax-audit\"><strong>Tax Audit<\/strong><\/a> Report as per Section 143 of the companies Act, 2013. <\/p>\n\n\n\n<p>Audit\nReport, when presented by Auditor in the Annual General Meeting, the comments\nand supplements made by CAG, should be mentioned in its original form in the\nAudit Report. <\/p>\n\n\n\n<p><strong><em>As per Section 394 of the Companies Act, 2013, the\nfollowing conditions should be considered while presenting Government Companies\nAnnual Report:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The\nCentral Government should submit the Government Companies Annual Report before\nboth the Houses of the Parliament.<\/li><li>The\nGovernment Companies Annual Report should explain the working and affairs of\nthe Government Companies.<\/li><li>The\nGovernment Companies Annual Report should also include the general description\nof the industry in which the Government Company is involved.<\/li><li>The\nGovernment Companies Annual Report should be presented within 3 months of the\nAnnual General Meeting. <\/li><li>The\ncopy of the comments by the CAG on the Audit Report should also be added in the\nAnnual Report. <\/li><\/ul>\n\n\n\n<p>In\naddition to the Central Government, if the State Government is also a member of\nthe Government Company, the Government Companies Annual Report should also be\nsubmitted to both the Houses of the State Legislatures. The copy of comments by\nthe CAG on the Audit Report of the Government Company should also be added in\nthe Government Companies Annual Report.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Section\n395<\/h4>\n\n\n\n<p><strong><em>Under\nSection 395 of the Companies Act, 2013, provides for the Government Companies\nAnnual Reports where one or more State Government(s) is a member of Government\nCompany.<\/em><\/strong> The following conditions are provided\nunder Section 395 of the Companies Act, 2013:<\/p>\n\n\n\n<ul><li>Every State Government of\nthe Government Company should prepare Government Companies Annual report on the\nfunctioning of the Company.<\/li><li>The Government Companies\nAnnual Report should be prepared within 3 months of the date Annual General\nMeeting held of the Government Company.<\/li><li>The preparation of the\nAnnual report should be done as per Section 394 of the Companies Act, 2013. <\/li><li>The copy of the comments on\nthe Audit Report by the CAG should be submitted with the Audit Report. &nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp; <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Government Company is owned and managed by the Central Government. Section 394 and 395 of the Companies Act, 2013, provides for the provision for Government Companies Annual Report. The Auditor should present the Government Companies Annual Report within the prescribed time. We at <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> have expert professionals who can assist and help you in your work. Our experts will assure the successful and timely completion of your work.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/\">Procedure of Filing Annual Return: A Complete Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company is a voluntary association of persons who come together to carry on some business and share profits after company registration. There are different types of companies specified under the Companies Act, 2013[1], and Government Companies is one of them. The Government Companies are owned and managed by the Central and State Government or both. [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":5296,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[415,120],"tags":[420],"acf":{"service_id":"321"},"authorName":"Sakshi Sharda","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/sakshi-sharda.jpg","authorDescription":"Sakshi Sharda has done BBALLB(HONS) and holds a strong knowledge on the matters pertaining to finance and law. From the past one year she is working as a legal advisor and in her leisure time she works on improvising her knowledge. Sakshi is spreading her knowledge by writing for Corpbiz.","postViews":20750,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5291"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5291"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5291\/revisions"}],"predecessor-version":[{"id":21574,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5291\/revisions\/21574"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5296"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}