(a) The audit of Public Sector Undertakings is carried out by the Comptroller and Auditor General of India (CAG) as per provisions of the CAG`s (Duties, Powers and Conditions of Service) Act, 1971 and the Companies Act, 2013. The Companies Act provides for supplementary audit of the financial statement of the company by CAG u/s 143 (6) in case of a Government company. While conducting audit of a Public Sector Entity, the examination of joint venture agreements falls within the scope of audit.
(b) Audit reports on the accounts of Government companies are placed before the Parliament under section 394 of the Companies Act 2013. In case a Joint Venture entity falls within the definition of a Government company, as defined under the Companies Act 2013, its accounts are to be placed before the Parliament.
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