(1)Where the Central Government is of the opinion,-(a)that the affairs of any company are not being managed in accordance with sound business principles or prudent commercial practices; or(b)that any company is being managed in a manner likely to cause serious injury or damage to the interests of the trade, industry or business to which it pertains; or(c)that the financial position of any company is such as to endanger its solvency, the Central Government may at any time by order direct that a special audit of the company's accounts for such period or periods as may be specified in the order, shall be conducted and may by the same or a different order appoint either a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) (whether or not such chartered accountant is a chartered accountant in practice within the meaning of that Act) or the company's auditor himself to conduct such special audit.
