Q1Section 135 CSR applicability threshold
2 marks hard
Case: Sai Ram Limited is a listed company with paid-up share capital of ₹200 crore (20 crore equity shares of ₹10 each) and authorised share capital of ₹300 crore, with its registered office at Pune. It produces health-related products. Balance Sheet extract as on 31st March, 2022 (₹ in crore): Free reserves created out of profits: 200; Securities Premium account: 80; Credit balance of Profit & Loss account: 50; Reserves created out of revaluation of assets: 25; Miscellaneous expenditure not written off: 10. Turnover for 2021-22 was ₹700 crore and net profit calculated u/s 198 was ₹4 crore. Board of…
Prakash, Chief compliance officer of the company informed the Board on 20th April, 2022 that the company attracts the provisions of section 135 of the Companies Act, 2013. On what basis of the following he arrived at this conclusion -
(A) On the basis of turnover of the company.
(B) On the basis of turnover and net profit of the company taken together.
(C) On the basis of net worth of the company.
(D) On the basis of net worth and turnover of the company taken together.
Q2Net worth calculation under section 2(57) for CSR
2 marks hard
Case: Sai Ram Limited is a listed company with paid-up share capital of ₹200 crore (20 crore equity shares of ₹10 each) and authorised share capital of ₹300 crore, with its registered office at Pune. It produces health-related products. Balance Sheet extract as on 31st March, 2022 (₹ in crore): Free reserves created out of profits: 200; Securities Premium account: 80; Credit balance of Profit & Loss account: 50; Reserves created out of revaluation of assets: 25; Miscellaneous expenditure not written off: 10. Turnover for 2021-22 was ₹700 crore and net profit calculated u/s 198 was ₹4 crore. Board of…
For the purpose of section 135 of the Companies Act, 2013, the net worth has to be calculated as defined under section 2(57) of the Act. In this context, which of the following statements is correct with reference to the above case –
(A) The net worth of Sai Ram Limited during the financial year 2021-22 was ₹520 crore.
(B) The net worth of Sai Ram Limited during the financial year 2021-22 was ₹530 crore.
(C) The net worth of Sai Ram Limited during the financial year 2021-22 was ₹555 crore.
(D) The net worth of Sai Ram Limited during the financial year 2021-22 was ₹620 crore.
Q3Composition of CSR Committee under section 135
2 marks hard
Case: Sai Ram Limited is a listed company with paid-up share capital of ₹200 crore (20 crore equity shares of ₹10 each) and authorised share capital of ₹300 crore, with its registered office at Pune. It produces health-related products. Balance Sheet extract as on 31st March, 2022 (₹ in crore): Free reserves created out of profits: 200; Securities Premium account: 80; Credit balance of Profit & Loss account: 50; Reserves created out of revaluation of assets: 25; Miscellaneous expenditure not written off: 10. Turnover for 2021-22 was ₹700 crore and net profit calculated u/s 198 was ₹4 crore. Board of…
Sai Ram Limited constituted a Corporate Social Responsibility Committee as per the provisions of the Act and Companies (Corporate Social Responsibility Policy) Rules, 2014, therein consisting of-
(A) Sai Ram, Hari Om, Bindu and Reddy
(B) Hari Om, Bindu, Reddy and Prakash
(C) Sai Ram, Hari Om, Bindu and Prakash
(D) Sai Ram, Hari Om, Bindu and Roshan
Q4Right of lien under Indian Contract Act 1872
2 marks hard
Case: Akash wants to wear a new coat for his seminar to be held after 20 days. He bought cloth material and gave it to Mr. Stitch, a tailor, to make the coat within one week. Akash paid 10% advance. After one week, the coat was still unstitched. The tailor demanded two more days but Akash refused and asked for his cloth back. The tailor retained the cloth and asked Akash to pay the price, as he had already done the cutting.
Nishant, Akash's friend, left his car at the company's authorised showroom for servicing. He instructed the manager to park the vehicle at Akash's residence after servicing. The…
According to the provisions of the Indian Contract Act, 1872, do you think the tailor has a right of lien over the cloth?
(A) Yes, he is entitled to retain the coat until he is paid.
(B) No, he has not completed the work within the agreed time.
(C) Yes, in case of particular lien he can retain the cloth.
(D) No, but he is not required to return the advance amount.
Q5Finder of goods as bailee under Indian Contract Act 1872
2 marks hard
Case: Akash wants to wear a new coat for his seminar to be held after 20 days. He bought cloth material and gave it to Mr. Stitch, a tailor, to make the coat within one week. Akash paid 10% advance. After one week, the coat was still unstitched. The tailor demanded two more days but Akash refused and asked for his cloth back. The tailor retained the cloth and asked Akash to pay the price, as he had already done the cutting.
Nishant, Akash's friend, left his car at the company's authorised showroom for servicing. He instructed the manager to park the vehicle at Akash's residence after servicing. The…
Referring to the provision of the Indian Contract Act, 1872, what are the repercussions, when Nishant found goods belonging to another and takes them into his custody? Choose the correct statement.
(A) He becomes subjected to the same responsibility as of a bailee.
(B) Merely possession of the goods does not make him a bailee.
(C) No act is done by owner for placing the goods in the possession of Nishant, so he cannot be treated as bailee.
(D) In the absence of any express or implied contract, absolves Nishant's liabilities as bailee.
Q6Securities issuance restrictions for private companies
1 marks easy
A Private Company cannot issue securities:
(A) By way of rights issue
(B) By way of bonus issue
(C) By way of private placement
(D) By issue of Prospectus in Public
Q7AGM report submission deadline to Registrar
2 marks easy
The Annual General Meeting of Yellow Limited was held on 25th June 2022. According to the provisions of Companies Act, 2013, till what date the company should submit report on AGM to the registrar?
(A) 30.06.2022
(B) 10.07.2022
(C) 24.07.2022
(D) 25.07.2022
Q8Offence under multiple enactments - General Clauses Act 1897
1 marks easy
As per the provisions of the General Clauses Act, 1897, where an act or omission constitutes an offence under two or more enactments, then the offender shall be liable to be prosecuted and punished under:
(A) Under either or any of those enactments
(B) Twice for the same offence
(C) Either (a) or (b) as per the discretion of the court
(D) Under the cumulative effect of both the enactments
Q9Section 8 company name requirements
1 marks easy
Where a company is granted licence under section 8, it is not required to use the word .............. even though it is a limited company:
(A) Guarantee company
(B) Limited Liability Partnership
(C) Limited or Private Limited, as the case may be
(D) Development Authority
Q10Commencement date of an Act of Parliament
1 marks easy
Where an act of parliament does not expressly specify any particular day as to the day of coming into operation of such Act, then it shall come into operation on the day on which:
(A) It receives the assent of the President
(B) It receives the assent of the Governor General
(C) It is notified in the official gazette
(D) It receives assent of both the houses of Parliament
Q11Classification of partially secured deposits under Companies
1 marks easy
K Limited decides to raise deposits of ₹10.00 lakh from its members. However, it proposes to secure such deposits partially by offering a security worth ₹5.00 lakh. Which of the following options best describe such deposits:
(A) Fully secured deposits (except a small portion)
(B) Unsecured deposits
(C) Partially secured deposits
(D) These cannot be classified as deposits
Q12Penal interest rate on overdue deposits
1 marks easy
Every company shall pay a penal rate of interest of .......... per annum for the overdue period in case of deposits, whether secured or unsecured, matured and claimed but remaining unpaid:
(A) 9%
(B) 14%
(C) 18%
(D) 24%
Q13Types of dividend - final dividend declared at AGM
1 marks easy
When the dividend is declared at the Annual General Meeting of the company, it is known as ….
(A) Final Dividend
(B) Interim Dividend
(C) Dividend on preference shares
(D) Scrip Dividend
Q14Statutory auditor tenure under Companies Act 2013
1 marks easy
Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its:
(A) Second annual general meeting
(B) Fourth annual general meeting
(C) Sixth annual general meeting
(D) Eighth annual general meeting
Q15Holding and subsidiary company relationship
1 marks easy
A Ltd. is holding 61% shares in B Ltd. and B Ltd. holds 51% in C Ltd. State which is the correct statement here:
(A) C Ltd. is the holding company to A Ltd.
(B) C Ltd. is the holding company to B Ltd.
(C) B Ltd. is the Subsidiary to C Ltd.
(D) Both B Ltd. and C Ltd. are subsidiary to A Ltd.
Q16Applicability of Companies Act 2013 to companies incorporate
2 marks easy
The Best Dry Fruits Ltd was incorporated under the Companies Act, 1913. Whether the provisions of the Companies Act, 2013 shall apply on it:
(A) No, the provisions of the Companies Act, 2013 shall not apply on it.
(B) Yes, the provisions of the Companies Act, 2013 shall apply on it.
(C) The Companies Act, 1913 was enacted by the British Government, hence only an Act made by British Government shall apply on such company.
(D) Since, this company was incorporated by the British Government, hence the Companies Act of UK Govt shall apply.
Q17Financial statements requirement for dormant company
1 marks easy
The financial statement in relation to a dormant company may not include:
(A) balance sheet
(B) cash flow statement
(C) applicable explanatory note
(D) profit and loss account
Q18Days of grace for negotiable instruments at maturity
1 marks easy
Any instrument is at maturity on the ……. day after the day on which it is expressed to be payable.
(A) first
(B) second
(C) third
(D) fourth
Q19Ambiguous instrument under Negotiable Instruments Act
1 marks easy
An instrument which is vague and cannot be clearly identified either as a bill of exchange, or as a promissory note, is called as:
(A) Bearer instrument
(B) Ambiguous instrument
(C) Order instrument
(D) Inland instrument
Q20Harmonious construction rule in statutory interpretation
1 marks easy
When there is a conflict between two or more statutes or two or more parts of a statute then which rule is applicable:
(A) Welfare construction
(B) Strict construction
(C) Harmonious construction
(D) Mischief Rule
Q21Maturity date calculation for promissory note with days of g
2 marks easy
A promissory note dated 31st August, 2022, is made payable three months after date. What will the maturity date for this instrument?
(A) 30th October, 2022
(B) 31st October, 2022
(C) 2nd December, 2022
(D) 3rd December, 2022
Q22Rule of literal/grammatical construction
1 marks easy
______________ is the cardinal rule of construction that words, sentences and phrases of a statute should be read in their ordinary, natural and grammatical meaning so that they may have effect in their widest amplitude.
(A) Rule of Literal Construction
(B) Rule of Harmonious Construction
(C) Rule of Beneficial Construction
(D) Rule of Exceptional Construction