Audit of Deemed Government Companies

MCA has clarified the doubts that has been raised on the  applicability of sections 139(5) and 139(7) of the Companies Act, 2013 (New Act), which deal with appointment of auditors by Comptroller and Auditor General of India (C&AG), to ‘deemed Government Companies’

Deemed Government Companies are those Companies which has been defined under section 619B of the Companies Act 1956 (Old Act)  ( Companies where ownership or control lies with two or more Government companies or corporations) 

Actually the New Act does not contain specific provisions about ‘deemed Government companies' on the lines of section 619B of the Old Act.

Clarification has been sought whether, under the new Act, such deemed Government companies would be subject to audit by the C&AG in the same manner as Government Companies. ‘

It is clarified that the new Act does not alter the position with regard to audit of such deemed Government companies through C&AG and thus such companies are covered under sub¬section (5) and (7) of section 139 of the New Act.