Annual reports on Government companies
Section 394 of the Companies Act, 2013 deals with annual reports on Government companies. Where the Central Government is a member of a Government company, the Central Government shall cause an annual report on the working and affairs of that company to be-- (a) prepared within three months of its annual general meeting before which the comments given by the Comptroller and Auditor-Gener The Act came into force on 01 Apr 2014.
(1) Where the Central Government is a member of a Government company, the Central Government shall cause an annual report on the working and affairs of that company to be--
(a) prepared within three months of its annual general meeting before which the comments given by the Comptroller and Auditor-General of India and the audit report is placed under the proviso to sub-section (6) of section 143; and
(b) as soon as may be after such preparation, laid before both Houses of Parliament together with a copy of the audit report and comments upon or supplement to the audit report, made by the Comptroller and Auditor-General of India.
(2) Where in addition to the Central Government, any State Government is also a member of a Government company, that State Government shall cause a copy of the annual report prepared under subsection
(1) to be laid before the House or both Houses of the State Legislature together with a copy of the audit report and the comments upon or supplement to the audit report referred to in sub-section (1).
Section 394, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… observed that the Court passes the order of sanction based on the arrangement arrived at between the parties and thereby affects transfer of assets and liabilities between them, which binds all. This is what was said: > "32. In view of the aforesaid discussion, we hold that the order passed by the Court under Section 394 of the Companies Act is based upon the compromise between two or more companies. Function of the court while sanctioning the compromise or arrangement is limited to oversee that the compromise or arrangement arrived at is lawful and that the affairs of the company were not conducted in a manner prejudicial to the …
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… the properties, rights and powers of the Transferor Company specified in the first, second and third parts of the Schedule II hereto and all other properties, rights and powers of the Transferor Company be transferred without further act or deed to the transferee company and accordingly the same shall pursuant to section 394(2) of the Companies Act, 1956 be transferred to and vest in the Transferee Company for all the estate and interest of the Transferor Company therein but subject, nevertheless to all charges now affecting the same; and 2. That all the liabilities and duties of the Transferor Company be transferred without …
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… The Court held: > " 42. It was next contended that provisions of Section 2( g )( iv ) read with Section 34 of the Bombay Stamp Act which provide that an instrument not duly stamped would be inadmissible in evidence are repugnant to Section 394 of the Companies Act and that the State legislation cannot prevail over the provisions of the Companies Act. It was also contended that in the guise of stamp duty the State Legislature is in reality imposing a tax on the amalgamation of companies and has therefore encroached on the field of Parliament under Entry 43 …
Questions about Section 394
What does Section 394 of the Companies Act deal with?
Section 394 of the Companies Act is headed "Annual reports on Government companies". Where the Central Government is a member of a Government company, the Central Government shall cause an annual report on the working and affairs of that company to be-- (a) prepared within three months of its annual general meeting before which the comments given by the Comptroller and Auditor-Gener
How do I find court cases under Section 394 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 394, section 394 Companies Act, section 394 of the Companies Act. People searching for it also type companies act 2006 section 394 and 394a companies act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 394 of the Companies Act, and has it changed?
Its own text turns on section 143 (Powers and duties of auditors and auditing standards), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.
When did Section 394 of the Companies Act come into force?
Section 394 of the Companies Act, cited as Companies Act 394, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.