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of <h1>State Governments Must Present Annual Reports on Government Companies Under Section 394, Even During Liquidation.</h1> When a Government company includes one or more State Governments as members, and the Central Government is not a member, each involved State Government must prepare an annual report on the company's operations. This report, along with the audit report and any supplementary comments, must be presented to the State Legislature within the timeframe specified in section 394. These requirements also apply to Government companies undergoing liquidation, similar to other Government companies.
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