Audit of Govt Companies by CAG - MoCA amends Companies Act by an Order
THE Ministry of Corporate Affairs has by a Removal of Difficulties Order amended Section 143 of the Companies Act, 2013.
Sub-sections (5) and (7) of section 139 of the said Act provide for power of the Comptroller and Auditor-General of India to appoint an auditor duly qualified to be appointed as an auditor in a government company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments;
Sub-section (5) of section 143 of the said Act which provides for power of the Comptroller and Auditor General of India to conduct supplementary audit does not specifically cover companies owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments';
And now they have rectified this error:
In Section 143 of the Companies Act, 2013 in sub-section (5), for the portion beginning with the words , In the case of a Government company and ending with the words "required to be audited and", the following is substituted: -
"In the case of a Government company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, the Comptroller and Auditor-General of India shall appoint the auditor under sub-section (51 or sub-section (71 of section 139 and direct such auditor the manner in which the accounts of the company are required to be audited and”.