A company is fully owned by central government but not listed.
As per Section 177 of CA,2013 read with rule 6, requires a public co. with turnover > 100 crores to form a audit committee.
Now, will the fully owned Govt company falls under rule 6 and shall it form a audit committee?
Will a Government company come under a public company?
Generally, government companies are public company. But, pursuant to section 2(45) of the Act, 2013 any company can be government company in which not less than 51% of the paid-up capital is held by the CG or by any SG or by both. So, just check whether your company is public company, and if it is then you are required to constitute audit committee.Hope i am clear.
CAclubindia
