QB1Services prohibited for statutory auditor - Section 144 Comp
0 marks easy
The Board of Directors of Amit Ltd. requested its Statutory Auditor to accept the assignment of designing and implementation of suitable financial information system to strengthen the internal control mechanism of the Company. How will you approach to this proposal, as an Statutory Auditor of Amit Ltd., taking into account the consequences, if any, of accepting this proposal?
QB12Interpretation of statutes - effect of usage and custom
0 marks easy
At the time of interpreting a statutes what will be the effect of 'Usage' or 'customs and Practices'?
QB2Re-opening of accounts - 8-year limitation under Section 130
0 marks easy
The Income Tax Authorities in the current financial year 2019-20 observed, during the assessment proceedings, a need to re-open the accounts of Qurie Ltd. for the financial year 2008-09 and, therefore, filed an application before the National Company Law Tribunal (NCLT) to issue the order to Qurie Ltd. for re-opening of its accounts and recasting the financial statements for the financial year 2008-09. Examine the validity of the application filed by the Income Tax Authorities to NCLT.
QB4Proxy validity - 48-hour deposit rule and competing proxies
0 marks easy
A General Meeting was scheduled to be held on 15th April, 2019 at 3.00 P.M. As per the notice the members who are unable to attend a meeting in person can appoint a proxy and the proxy forms duly filled should be sent to the company so as to reach at least 48 hours before the meeting. Mr. X, a member of the company appoints Mr. Y as his proxy and the proxy form dated 10-04-2019 was deposited by Mr. Y with the company at its registered Office on 11-04-2019. Similarly, another member Mr. W also gives two separate proxies to two individuals named Mr. M and Mr. N. In the case of Mr. M, the proxy dated 12-04-2019 was deposited with the company on the same day and the proxy form in favour of Mr. N was deposited on 14-04-2019. All the proxies viz., Y, M and N were present before the meeting. According to the provisions of the Companies Act, 2013, who would be the persons allowed to represent as proxies for members X and W respectively?
QB5Conditions for issue of bonus shares - Section 63 Companies
0 marks easy
Shiva Cement Limited is engaged in the manufacture of different types of cements and has got a good brand value. Over the years, it has built a good reputation and its Balance Sheet as at March 31, 2020 showed the following position: (1) Authorized Share Capital (25,00,000 equity shares of Rs. 10/- each) Rs. 2,50,00,000; (2) Issued, subscribed and paid-up Share Capital (10,00,000 equity shares of Rs. 10/- each, fully paid-up) Rs. 1,00,00,000; (3) Free Reserves Rs. 3,00,00,000. The Board of Directors are proposing to declare a bonus issue of 1 share for every 2 shares held by the existing shareholders. The Board wants to know the conditions and the manner of issuing bonus shares under the provisions of the Companies Act, 2013.
QB6Filing of AGM report within 30 days - Section 121 Companies
0 marks easy
Pristine Limited, a listed public company, conducted its Annual General Meeting on 31st August, 2020. However, 10 days have passed since 31st August, 2020, but it has still not filed report on Annual General Meeting. The Accountant of the company has approached you to advise them whether Pristine Limited is required to file report on Annual General Meeting?
QB7Contents of memorandum in prospectus advertisement - Section
0 marks easy
Keya Limited decides to issue 1,00,000 securities of the company. The company decides to publish an advertisement of the prospectus. Enumerate to the company about necessary contents of its memorandum to be specified therein.
QB8OPC nominee - Indian resident requirement
0 marks easy
Nadeem incorporated a 'One Person Company' making his sister Nisha as the nominee. Nisha is leaving India permanently due to her marriage abroad. Due to this fact, she is withdrawing her consent of nomination in the said One Person Company. Taking into considerations the provisions of the Companies Act, 2013 answer the questions given below.
QB9Agency coupled with interest - Section 202 Indian Contract A
0 marks easy
Akash is a famous manufacturer of leather goods. He appoints Prashant as his agent. Prashant is entrusted with the work of recovering money from various traders to whom Akash sells leather goods. Prashant is paid a monthly remuneration of Rs. 15,000. Prashant during a particular month recovers Rs. 40,000 from traders on account of Akash. Prashant gives back Rs. 25,000 to Akash, after deducting his salary. Examine with reference to relevant provisions of the Indian Contract Act, 1872, whether act of Prashant is valid.
Q3Private placement of securities - Companies Act 2013
0 marks easy
Which of the following statement is contrary to the provisions of the Companies Act, 2013?
(A) A private company can make a private placement of its securities.
(B) The company has to pass a special resolution for private placement.
(C) Minimum offer per person should have Market Value of Rs. 20,000.
(D) A public company can make a private placement of its securities.
Q4Bailor's liability for undisclosed defects in goods lent - I
0 marks easy
Vishal lends a horse to Preet. The horse is vicious, which is known to Vishal but he does not disclose the fact to Preet. The horse runs away. Preet is thrown and injured. As per the provisions of the Contract Act, 1872, which is the correct statement:
(A) Preet is responsible for his injury.
(B) Though the horse belonged to Vishal but he cannot be held responsible
(C) Vishal is responsible to Preet for damage sustained
(D) No one can be held responsible for the damage sustained as no one can take guarantee for the horse
Q5Guarantee obtained by misrepresentation of creditor
0 marks easy
As per the Indian Contract Act, 1872, any guarantee which has been obtained by the means of misrepresentation made by the creditor concerning a material part of the transaction, is:
(A) Valid
(B) Invalid
(C) outside the ambit of the Indian Contract Act, 1872
(D) not revocable if the damage sustained is less than 10% of the amount for which the guarantee is given
Q1.4AGM quorum requirement for company with 5000-10000 members
0 marks hard
Case: Mr. Ajay is a renowned finance professional with wide experience in banking operations. Due to his experience, he has been appointed as director on the Board of various companies. He is working as the Executive Director - Finance of Doon Carbonates Limited (DCL) for the past 4-5 years and heading the finance department there. As per the object clause of the Memorandum of Association of DCL, it can raise funds by way of loans for the advancement of its business. Articles of Association of DCL authorizes the directors to borrow up to INR 50 lakhs on behalf of the company after passing a valid bo…
Regarding the validity of the 21st Annual General Meeting of DCL, which of the following statements is correct?
(A) The meeting doesn't have a quorum, because 30 members need to be present in person at the meeting.
(B) The meeting is valid and has a quorum because 30 members are present at meeting either personally or through a proxy.
(C) The meeting is valid and has a quorum, because only 5 members are required to be present, either personally or through a proxy, if the number of members as on the date of the meeting is more than five thousand but not more than ten thousand
(D) The meeting is valid and has a quorum, because only 15 members are required to be present, either personally or through a proxy, if the number of members as on the date of the meeting is more than five thousand but not more than ten thousand
Q2.1Register of members - place of keeping and special resolutio
0 marks hard
Case: Mr. M. Mishra is a director of Superior Carbonates and Chemicals Limited (SCCL). SCCL was incorporated by Mr. S. K. Mishra (father of Mr. M. Mishra) on 05th July 1995 as a public company. SCCL accepts a loan of Rs. 1.5 crores from Mr. M. Mishra for short term purpose and the loan is expected to be repaid after twenty four months. SCCL in its books of account, records the receipt as a loan under non-current liabilities. At the time of advancing loan, Mr. M. Mishra affirms in writing that such amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from…
Pick the right statement regarding SCCL's willingness to keep and maintain the register of members at the Nainital liaison office.
(A) Register of members shall be kept at either registered office or within the same city that too after passing the resolution, hence SCCL is not correct in placing it at the Nainital liaison office
(B) Register of members cannot be kept at any other place by SCCL, without passing an ordinary resolution
(C) Register of members can be kept at Nainital liaison office, after passing a special resolution, because more than 1/10th of the total members entered in the register of members reside there
(D) Register of members cannot be kept at Nainital liaison office, even after passing a special resolution, because less than 1/5th of the total members entered in the register of members reside there
Q2.2Maximum period for acceptance of public deposits under Compa
0 marks hard
Case: Mr. M. Mishra is a director of Superior Carbonates and Chemicals Limited (SCCL). SCCL was incorporated by Mr. S. K. Mishra (father of Mr. M. Mishra) on 05th July 1995 as a public company. SCCL accepts a loan of Rs. 1.5 crores from Mr. M. Mishra for short term purpose and the loan is expected to be repaid after twenty four months. SCCL in its books of account, records the receipt as a loan under non-current liabilities. At the time of advancing loan, Mr. M. Mishra affirms in writing that such amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from…
With reference to deposit accepted by DBSL and its duration, you are required to identify which of the following statements is correct:
(A) There is no requirement relating to the duration of deposit, DBSL can accept a deposit for any duration.
(B) Since DBSL is an unlisted company, provision relating to the duration of the deposit is not applicable.
(C) There is a provision of a minimum duration of six months, but no upper cap to length is provided. Hence deposit accepted by DBSL is in compliance to provisions of Law.
(D) Acceptance of deposits by DBSL is in violation of provision of law, because the maximum period of acceptance of deposit cannot exceed thirty-six months.
Q2.3Late registration of charge - additional fee under Companies
0 marks hard
Case: Mr. M. Mishra is a director of Superior Carbonates and Chemicals Limited (SCCL). SCCL was incorporated by Mr. S. K. Mishra (father of Mr. M. Mishra) on 05th July 1995 as a public company. SCCL accepts a loan of Rs. 1.5 crores from Mr. M. Mishra for short term purpose and the loan is expected to be repaid after twenty four months. SCCL in its books of account, records the receipt as a loan under non-current liabilities. At the time of advancing loan, Mr. M. Mishra affirms in writing that such amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from…
With reference to application to the registrar for registration of charge by DBSL, which of the following statements is correct?
(A) The charge cannot be registered now, even if the Registrar permits the same.
(B) The charge can be registered, if registrar permits with payment of ad-valorem fee.
(C) The charge can be registered, if registrar permits but with payment of an additional fee.
(D) The charge can be registered, with payment of a standard fee.
Q2.4Director's loan - classification as deposit with written dec
0 marks hard
Case: Mr. M. Mishra is a director of Superior Carbonates and Chemicals Limited (SCCL). SCCL was incorporated by Mr. S. K. Mishra (father of Mr. M. Mishra) on 05th July 1995 as a public company. SCCL accepts a loan of Rs. 1.5 crores from Mr. M. Mishra for short term purpose and the loan is expected to be repaid after twenty four months. SCCL in its books of account, records the receipt as a loan under non-current liabilities. At the time of advancing loan, Mr. M. Mishra affirms in writing that such amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from…
With reference to the loan advanced by Mr. M. Mishra to SCCL, state whether the same is to be classified as a deposit or not?
(A) Deposit, because any sum advanced by the director whether loan or otherwise is always classified as a deposit.
(B) Deposit, because the tenor of the loan is for a period of more than six months.
(C) Not a deposit, because such amount is recorded as loan in books of account of SCCL.
(D) Not a deposit, because the written declaration is provided by Mr. M. Mishra, who was a director when the loan was advanced that the loan is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others.
Q2.5AGM shorter notice - 95% consent requirement
0 marks hard
Case: Mr. M. Mishra is a director of Superior Carbonates and Chemicals Limited (SCCL). SCCL was incorporated by Mr. S. K. Mishra (father of Mr. M. Mishra) on 05th July 1995 as a public company. SCCL accepts a loan of Rs. 1.5 crores from Mr. M. Mishra for short term purpose and the loan is expected to be repaid after twenty four months. SCCL in its books of account, records the receipt as a loan under non-current liabilities. At the time of advancing loan, Mr. M. Mishra affirms in writing that such amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from…
Considering the provision relating to length of Notice for AGM, pick out the right option:
(A) Notice served by DBSL is not valid, because notice given within a shorter duration has to be consented to by all the members entitled to vote at AGM.
(B) Notice served by DBSL is not valid, because notice given within a shorter duration has to be consented to by at-least 95% of members entitled to vote thereat.
(C) Notice served by DBSL is valid because the shorter length has been consented to by 75% of members entitled to vote thereat.
(D) Notice served by DBSL is not valid, because notice given within a shorter length duration needs has to by at-least 50% of the members entitled to vote at AGM that too in writing.