Lok Sabha Question No. 1712 (UNSTARRED), answered on 2020-03-02
Subject: Audit of KIIFB and KIAL
Ministry: FINANCE
Asked by: Shashi Tharoor

(a) and (b):

- (i) Audit of the transactions  of KIIFB for Ure period 1999-2000 to 2006-07  (November 1999 to 31 t'larch 2007) had been conducted  under Sedion 14(1) of the CAGt DPC Act, 1971 during May/June 2007. Audit of the accounts of KIIFB for the period  1999-2000 to 2006-07 was conducted under Section 20(2) of the CAG!  Drc Act, 1971 from 16/04/2007  lo 28lxl2@7. Audit of KIIFB  under Section 14(1) of the CAG'S DPC Ad, 1971 for the  period  2015-16 to 2017-18  commenced on 21.12.2018 but susp€nded  in February 2019. It  resumed on
- 09.05.2019  and again suspended on 27.05.2019.  This was again stafted on 27 -01.2020.
- (ii) The Audit oF KIAL was conducted  under Sedion 19(1) of CAG'S (Duties,  PoweG and Conditions  of Service) Act, 1971 upto 2015-16.  As part of audit, Inspection Reports for 200911, 2011-15 and 2015-16  were issued  and Supplementary  Audit for 2009-10  to 2015-16 were
- also  conduded.

(c)  and (d):

- (i) Audit of KIIFB  under Section 14(1) of ti€  CAG5  Drc Act for the period  up to January 2020
- has been taken up from 27.01.2020.
- (ii)  The  audit  of KIAL  for  tle  period  from 2016-17  could not be taken up due to non cooperation from $e Management  of the Company citing the reason that it is not a Govemment Company  as per Section 2(45) of Companies Act, 2013. The audit  party deployed for
- Compliance audit was not  permitted  to take up the audit twice. The Financial  Statements  for

## GOVERNMENT  OF INDIA MTNISTRY OF FINANCE DEPARTM EI,II OF ECONOM1C  AFFAIRS

## LOX SABHA UNSTARRED  QUESTION  NO.1712 TO BE Ai{SWERED  ON MONDAY, THE 2IIO MARCH, ?O2O [12  PHALGUT{&  1941 (5AKA)I

.AUDTT  OF KIIFB AND KIAL'

No.1712.  DR. SHASHI THAROOR:

Will  the MINISTER  OF FINANCE  be pleased  to state:

- (a)
- (b) if so, the details  thereof and if not the reasons  therefor;
- whether the Comptroller  and Auditor General (CAG) has conducted  an audit of financial transactions for the t\ato  state-run organizations  Kerala Infrastructure  Investsnent  Fund Board (KIIFB) and knnur  International Ajrport Ltd. (KIAL)  in the  past;
- whether the Govemment of Kerala has allowed CAG audlt of KIIFB and KIAI- ever
- (d) if so, the details thereof and if not, the reasons  therefor including  the actions taken;
- (c) since  coming  into  power  in 2016;
- whether  the C G, that is empowered under Section 14(1) cAG's (Duties,  Powers and Conditions of Service) Act, 1971, is willing  to conduct a suo notu audit of KtrFB and
- (0 if so, the details thereof and if not, the reasons  therefor?

## ANSWER

## THE IIINISTER  OF STATE IN THE MINISTRY  Of FINANCE (SHRI  ANURAG SINGH THAKUR)

- (e) KIAL; and

2016-17 was adopted at the Annual General I'leeting of the Company without certificauon of this Office.

Ministry  of Corporate Aff"irs  has clarified  that the Companies  Act, 2013 does not alter the position \.4rith regard to audit of deemed  Govt. Companies as mentioned  in section 619(8) of the Companies Ad, 1956 and such Companies are covered u/s 139(5)  & (7) of the Companies Act 2013. Several  corespondences  were made with the company  and various authorities  in this regard.

- (e) and (0:
- (i) Audit of KIIFB under Section 14(1) of the Ad has commenced  on 27.01.2020.
- (ii) Since  the Government  has not given  any grant or loan to KIAL,  the CAG is not empowered to audlt  KIAL  under Section 14(1) of CAG'S (Duties,  Powers and Conditions of Sewice) Act, 1971.