Page 319 - CA Final PARAM Digital Book.

• criteria used by the same entity or other entities in similar activities or programmes.
• independent expert opinion and know how.
• new or established scientific knowledge and other reliable information.
• general management and subject matter literature and research papers

QNO “Government Company” definition- Old Course-- (SM21)
605.500 TITANIUM CNO -- Unique New Course-- (SM23)
BT Ltd, a company wholly owned by central government was disinvested during the previous year,
resulting in 40% of the shares being held by public. The shares were also listed on the BSE. Since the
shares were listed, all the listing requirements were applicable, including publication of quarterly results,
submission of information to the BSE etc.

Sam, the FM of the company is of the opinion that now the company is subject to stringent control by
BSE and the markets, therefore the auditing requirements of a limited company in private sector under
the Companies Act 2013 would be applicable to the company and the C&AG will not have any role to
play. Comment.
➢ Section 2(45) of the Companies Act, 2013, defines a “Government Company” as
• A company in which not less than 51% of the paid-up share capital is held 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 includes a company which is a subsidiary
company of such a Government company.
• The auditors of these government companies are firms of Chartered Accountants, appointed by
the Comptroller & Auditor General, who gives the auditor directions on the manner in which
the audit should be conducted by them.
• The listing of company’s shares on a stock exchange is irrelevant for this purpose and hence
Sam’s opinion is not correct

elements of Quality Review Report.

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