Suppose Delhi urban transport service Ltd. Whose total authorised and paidup capital is 10,00,000 shares @Rs.10 each total 1 crore rupees. Share holding pattern suppose to be 500000 shares held by Delhi Muncipal corporation and balance 500000 shares held by Delhi Development Authority . My question is Delhi Urban Transport Ltd. Considered as Govt. Company ? And who shall appoint the Auditor of the said company ?
Direct Government Holding
CG + SG holdings >= 51% or More
Indirect Government Holding
CG + SG + Other Government Company holdings >= 51% or More
In both above cases CAG will appoint auditor.
Now in this example holdings are of municipal corporations or development authority which fall under local governments. They are not CG or SG. Auditor will be appointed as per company act by shareholders. CAG wont come in picture because it is not falling under government company definition directly or indirectly.