AJD Limited is a Government company

According to Section 617, Government company means any company in which not less than 51 % of the paid-up share capital is held by the Central Government or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments and includes a company which is a subsidiary of a Government company as thus defined. None of the shares of AJD Limited is held by Central or State Governments. Further AJD Limited is not a subsidiary of any Government company. Hence, AJD Limited is not a government company within the meaning of Section 617 of the Companies Act, 1956

However, the provisions of Sec. 619B are attracted in this case as corporations owned or controlled by the Central Government hold among themselves more than 51% of the paid-up share capital of AJD Limited [Section 619B(£)]. The company will be deemed to be a government company for the limited purpose of appointment of Auditors. The Auditor in the given company is to be appointed by the Central Government on the advice of the Comptroller and Auditor General of India.