Kannur: The Kannur International Airport Limited (KIAL) does not need the audit of the CAG (Comptroller and Auditor General), its officials have said. The airport authorities came out with a clarification regarding the audit of the company’s accounts after a controversy erupted over the denial of CAG audit.
“The audit at KIAL is covered by the Company Law. Till the financial year 2017-18, auditing was carried out by a private firm appointed by CAG. However, from 2018-19, a private auditor appointed by the annual general body meeting of shareholders is engaged in the task,” they said.
This appointment was done based on the Company Law of 2013. Detailed discussions were held and all legal aspects were examined before the decision was taken, the airport authorities added.
“That KIAL is not a government company has been clearly mentioned in a letter of the government dated January 5, 2018. A company becomes a government firm only if the Central or state government holds at least 51 per cent of the total shares, either together or separately,” they informed.
“However, Central government has no stake in KIAL, while the state government share is only 35 per cent. Moreover, the stakes held by the public sector undertakings in KIAL cannot be considered as government shares,” said the airport authorities.
“Considering these aspects, regulations for government companies cannot be applied in KIAL’s case,” they claimed.
KIAL officials also said that as per the Company Law of 1956, auditors appointed by CAG had to carry out the audit of firms in which the government and government companies had a minimum of 51 per cent stake. “However, this clause was dropped in the Company Law of 2013,” they pointed out.
KIAL has chosen the private auditor Deloitte and Touche, which is one among the four largest audit firms in India, the airport authorities said.
