Q1Register of Members - maximum closure period at one stretch
0 marks hard
Case: Baking Point Limited was incorporated by Shilpi (CMD) and Shilpa (WTD) along with other close friends, with Registered Office in Connaught Place, New Delhi, operating over 50 branches in Delhi/NCR serving bakery products. Other directors: Prabhat (R&D), Sahil (Marketing), Vikalp (Production), Sukanya (Finance). The company avails internet services from Etherwaves Telecommunications Pvt Ltd (Chandigarh) and maintains books electronically at www.bakingpoint.com. The Board resolved on December 6, 2024 to issue Bonus Shares in ratio 1:2; approved at EGM on January 9, 2025 with record date January …
According to the above Case Scenario, Baking Point Limited closed its Register of Members for twelve days in connection with the issue of Bonus Shares to its shareholders. You are required to choose the correct option from those stated below as to the maximum time limit for which the Register of Members can be closed at any one time at a stretch by Baking Point Limited?
(a) Though Baking Point Limited closed its Register of Members for twelve days in connection with the issue of Bonus Shares to its shareholders, yet it is permitted to close the said Register maximum for a period not exceeding forty-five days at any one time at a stretch.
(b) Though Baking Point Limited closed its Register of Members for twelve days in connection with the issue of Bonus Shares to its shareholders, yet it is permitted to close the said Register maximum for a period not exceeding twenty days at any one time at a stretch.
(c) Though Baking Point Limited closed its Register of Members for twelve days in connection with the issue of Bonus Shares to its shareholders, yet it is permitted to close the said Register maximum for a period not exceeding thirty days at any one time at a stretch.
(d) Though Baking Point Limited closed its Register of Members for twelve days in connection with the issue of Bonus Shares to its shareholders, yet it is permitted to close the said Register maximum for a period not exceeding sixty days at any one time at a stretch.
Q2Bonus shares - prohibited sources of capitalisation (revalua
0 marks hard
Case: Baking Point Limited was incorporated by Shilpi (CMD) and Shilpa (WTD) along with other close friends, with Registered Office in Connaught Place, New Delhi, operating over 50 branches in Delhi/NCR serving bakery products. Other directors: Prabhat (R&D), Sahil (Marketing), Vikalp (Production), Sukanya (Finance). The company avails internet services from Etherwaves Telecommunications Pvt Ltd (Chandigarh) and maintains books electronically at www.bakingpoint.com. The Board resolved on December 6, 2024 to issue Bonus Shares in ratio 1:2; approved at EGM on January 9, 2025 with record date January …
Baking Point Limited declared issue of Bonus Shares in the ratio of 1:2 to its shareholders. Which one of the following resources Baking Point Limited was not permitted to capitalize for issuing Bonus Shares? Considering the applicable provisions, you are required to choose the correct option from those given below:
(a) For issuing Bonus Shares, Baking Point Limited was not permitted to capitalise the amount of ₹ two crore ten lakh lying to the credit of free reserves.
(b) For issuing Bonus Shares, Baking Point Limited was not permitted to capitalise the amount of ₹ thirty lakh shown by Securities Premium Account.
(c) For issuing Bonus Shares, Baking Point Limited was not permitted to capitalise the revaluation reserves of ₹ one crore fifty lakh created by the Revaluation of Assets.
(d) For issuing Bonus Shares, Baking Point Limited was not permitted to capitalise the amount of ₹ twenty-five lakh lying to the credit of Capital Redemption Reserve Account.
Q3Register of Members - aggregate closure period per year
0 marks hard
Case: Baking Point Limited was incorporated by Shilpi (CMD) and Shilpa (WTD) along with other close friends, with Registered Office in Connaught Place, New Delhi, operating over 50 branches in Delhi/NCR serving bakery products. Other directors: Prabhat (R&D), Sahil (Marketing), Vikalp (Production), Sukanya (Finance). The company avails internet services from Etherwaves Telecommunications Pvt Ltd (Chandigarh) and maintains books electronically at www.bakingpoint.com. The Board resolved on December 6, 2024 to issue Bonus Shares in ratio 1:2; approved at EGM on January 9, 2025 with record date January …
It is evident from the above Case Scenario that Baking Point Limited closed its Register of Members for the first time in the year 2025 for twelve days for the purpose of issuing Bonus Shares to its shareholders. Maximum for how many times and for how much period or periods, a company is permitted to close its Register of Members in each year? Considering the relevant provisions, you are required to choose the correct option from those mentioned below:
(a) In each year, a company is permitted to close its Register of Members for one time or more than one time and also for any period or periods but in the aggregate such period or periods of closure shall not exceed forty-five days.
(b) In each year, a company is permitted to close its Register of Members for one time or more than one time and also for any period or periods but in the aggregate such period or periods of closure shall not exceed sixty days.
(c) In each year, a company is permitted to close its Register of Members for one time or more than one time and also for any period or periods but in the aggregate such period or periods of closure shall not exceed ninety days.
(d) In each year, a company is permitted to close its Register of Members maximum for two times and such period or periods of closure in the aggregate shall not exceed one hundred days.
Q4Bonus shares - conditions and authorisation requirements
0 marks hard
Case: Baking Point Limited was incorporated by Shilpi (CMD) and Shilpa (WTD) along with other close friends, with Registered Office in Connaught Place, New Delhi, operating over 50 branches in Delhi/NCR serving bakery products. Other directors: Prabhat (R&D), Sahil (Marketing), Vikalp (Production), Sukanya (Finance). The company avails internet services from Etherwaves Telecommunications Pvt Ltd (Chandigarh) and maintains books electronically at www.bakingpoint.com. The Board resolved on December 6, 2024 to issue Bonus Shares in ratio 1:2; approved at EGM on January 9, 2025 with record date January …
Baking Point Limited issued Bonus Shares to its shareholders in a 1:2 ratio. Which of the following statements is true regarding the issuance of Bonus Shares?
(a) Bonus Shares can be issued only if authorized by the Articles of Association (AOA) of the company.
(b) Bonus Shares can be issued without the approval of the Board of Directors.
(c) Bonus Shares must be issued in exchange for additional capital contribution from shareholders.
(d) Bonus Shares are issued at a price lower than the market value.
Q5Unpaid dividend - transfer to Unpaid Dividend Account within
0 marks hard
Case: Baking Point Limited was incorporated by Shilpi (CMD) and Shilpa (WTD) along with other close friends, with Registered Office in Connaught Place, New Delhi, operating over 50 branches in Delhi/NCR serving bakery products. Other directors: Prabhat (R&D), Sahil (Marketing), Vikalp (Production), Sukanya (Finance). The company avails internet services from Etherwaves Telecommunications Pvt Ltd (Chandigarh) and maintains books electronically at www.bakingpoint.com. The Board resolved on December 6, 2024 to issue Bonus Shares in ratio 1:2; approved at EGM on January 9, 2025 with record date January …
Baking Point Limited declared a final dividend for the financial year 2023-24 at its Annual General Meeting (AGM). As per the Companies Act, 2013, what should the company do if a shareholder does not claim the dividend within 30 days of declaration?
(a) The company must immediately transfer the amount to the Investor Education and Protection Fund (IEPF).
(b) The company must transfer the unpaid dividend to a special Unpaid Dividend Account within 7 days from the expiry of 30 days.
(c) The dividend remains with the company until the shareholder claims it.
(d) The company must cancel the dividend and credit the amount to its free reserves.
Q6Books of Account - minimum retention period
0 marks hard
Case: Baking Point Limited was incorporated by Shilpi (CMD) and Shilpa (WTD) along with other close friends, with Registered Office in Connaught Place, New Delhi, operating over 50 branches in Delhi/NCR serving bakery products. Other directors: Prabhat (R&D), Sahil (Marketing), Vikalp (Production), Sukanya (Finance). The company avails internet services from Etherwaves Telecommunications Pvt Ltd (Chandigarh) and maintains books electronically at www.bakingpoint.com. The Board resolved on December 6, 2024 to issue Bonus Shares in ratio 1:2; approved at EGM on January 9, 2025 with record date January …
As per the Companies Act, 2013, for how long must Baking Point Limited retain its Books of Account and other financial records in electronic mode?
(a) 3 years
(b) 5 years
(c) 8 years
(d) Indefinitely
Q7Internal Auditor - eligibility and appointment under Compani
0 marks hard
Case: Baking Point Limited was incorporated by Shilpi (CMD) and Shilpa (WTD) along with other close friends, with Registered Office in Connaught Place, New Delhi, operating over 50 branches in Delhi/NCR serving bakery products. Other directors: Prabhat (R&D), Sahil (Marketing), Vikalp (Production), Sukanya (Finance). The company avails internet services from Etherwaves Telecommunications Pvt Ltd (Chandigarh) and maintains books electronically at www.bakingpoint.com. The Board resolved on December 6, 2024 to issue Bonus Shares in ratio 1:2; approved at EGM on January 9, 2025 with record date January …
Suppose now, Baking Point Limited wants to appoint an Internal Auditor to review its operations and compliance. As per the Companies Act, 2013, which of the following statements is correct?
(a) Appointment of an Internal Auditor is mandatory for all companies.
(b) An Internal Auditor must be a Chartered Accountant (CA) in practice.
(c) The Internal Auditor may be a Chartered Accountant (CA) or Cost Accountant (CMA) or any other professional decided by the Board.
(d) The Internal Auditor must be appointed by the shareholders through a special resolution.
Q8LLP Act - consequence of vacancy in designated partner posit
0 marks easy
XYZ LLP, a well-established limited liability partnership, had two designated partners, Aditi and Rajiv. On 15th January, 2025, Rajiv resigned due to personal reasons, leaving Aditi as the only designated partner in the LLP. The remaining partners were aware of their responsibility to appoint a new designated partner as per the requirement of the Limited Liability Partnership (LLP) Act, 2008. However, due to internal disagreements, they failed to appoint a new designated partner within the prescribed time frame. On 20th February 2025, the Registrar of Companies (ROC) issued a notice to XYZ LLP, seeking clarification on its compliance status regarding the appointment of the designated partner. As per the LLP Act, 2008, choose the correct option if XYZ LLP fails to appoint a second designated partner within the prescribed time period.
(a) The LLP will automatically be dissolved by the ROC, if one more designated partner is not appointed by 30th January 2025.
(b) Aditi will be removed as the designated partner, and the LLP will be treated as a normal partnership firm.
(c) If one more designated partner is not appointed within 30 days of a vacancy, each partner of XYZ LLP will be deemed a designated partner and will be held responsible for compliance requirements.
(d) XYZ LLP will be fined ₹ 10,00,000 immediately for non-compliance, and the ROC will appoint all new designated partners.
Q9FEMA - repatriation of foreign property sale proceeds to Ind
0 marks easy
Pranab, an Indian citizen and a software engineer, was working for a multinational IT firm based in Singapore for over eight years. During his tenure, he accumulated substantial savings in his Singapore bank account and invested in a few properties there. With a plan to permanently return to India, he decided to sell one of his properties and transfer the proceeds to his newly opened bank account in India. Simultaneously, Pranab's employer deputed him to India for a critical software development project for three years, effective from January 2023. His salary was credited to his Indian bank account. Now, Pranab wishes to transfer the proceeds from selling his property in Singapore to his bank account in India. As per the provisions of the Foreign Exchange Management Act, 1999, which of the following statements is most accurate regarding his ability to do so?
(a) He can freely transfer the full amount without any restrictions as he is now an Indian resident.
(b) He cannot transfer the amount at all since the property was acquired outside India.
(c) He can freely transfer the funds if the property was purchased while he was a resident outside India.
(d) He needs prior RBI approval irrespective of how the property was acquired.
Q10FEMA - foreign exchange withdrawal for cultural tours under
0 marks easy
Ms. Kanika Tripathi, an accomplished classical dancer, has been invited by Oxford University to perform at a cultural event. She seeks to withdraw USD 75,000 for tour expenses. What is the most likely restriction on this transaction under the Foreign Exchange Management Act, 1999 (FEMA) and its guidelines?
(a) She must obtain prior approval from the Reserve Bank of India (RBI) before withdrawing foreign exchange for cultural tours.
(b) She can withdraw foreign exchange freely within the limits prescribed under the Liberalized Remittance Scheme (LRS) or relevant FEMA guidelines.
(c) Foreign exchange withdrawal for cultural performances is prohibited under FEMA.
(d) She must first obtain a visa before withdrawing foreign exchange.
Q11Section 29 - public offer of securities in dematerialised fo
0 marks easy
Grab Ltd., an unlisted company, intends to make a public offer of securities. However, they are not sure about the compliance requirements for issuing securities in dematerialised form. You being an expert, guide Grab Ltd. on the relevant provisions of the Companies Act, 2013 and whether Grab Ltd. is eligible to issue its securities?
Q12Section 61 - sub-division of shares and alteration of share
0 marks easy
Shenoy Limited is a company with an authorized share capital of 20,00,000 equity shares of ₹100 each. At the Annual General Meeting (AGM), the shareholders proposed to reduce the face value of each share from ₹100 to ₹10 and correspondingly increase the number of shares from 20 lakh to 2 crore, keeping the total authorized share capital unchanged. Analyse whether the request of the shareholders is considerable and if so, how the company can alter its share capital as per the provisions of the Companies Act 2013?
Q13Companies Act - acceptance of money from director and deposi
0 marks easy
Excel Pvt. Ltd. received ₹50 lakh from Mr. Giver. Mr. Giver was a director of the company at the time of the transaction. However, Mr. Giver did not submit any written declaration stating that the amount was not given out of borrowed funds. The company utilized the said funds for business expansion and disclosed the receipt of money in the Board's report. Considering the provisions of the Companies Act, 2013, assess the following situations:
Q14Section 129(3) - exemption from consolidated financial state
0 marks easy
Madan Pvt. Ltd. is a partially owned subsidiary of Puri Ltd., holding 90% of its shares. The company does not have any listed securities and is not in the process of listing on any stock exchange. Puri Ltd., the holding company, prepares and files consolidated financial statements (CFS) with the Registrar in compliance with applicable Accounting Standards. Considering the above, analyze and examine the following situations:
Q15Section 92 / Form MGT-7A - annual return for One Person Comp
0 marks easy
ABC Pvt. Ltd. is a One Person Company (OPC) incorporated in 2024. The company has not appointed a company secretary due to its small scale of operations. At the end of the financial year 2024-25, the company needs to file its annual return. The director in state of dilemma, consulted the company law expert whether they need to submit a full-fledged annual return or an abridged version and who should sign the document. Based on the provisions of the Companies Act, 2013, advise on the following:
Q16Section 139(2) - auditor rotation cooling-off period and com
0 marks easy
M/s Sharma & Associates is an audit firm with two partners, Mr. Sharma and Mr. Raj. Mr. Raj is also a partner in another audit firm, M/s Mehta & Associates. M/s Sharma & Associates was appointed as the statutory auditor for Bright Future Ltd. (listed company, on which provisions related to rotation of auditor apply) for two consecutive terms of 5 years each, from 2017 to 2027. If Bright Future Ltd. now wants to appoint M/s Mehta & Associates as its audit firm, can it do so? If not, when will the restriction be lifted?
Q17LLP Act 2008 - Small LLP classification criteria (contributi
0 marks easy
JEET LLP is a small scale consulting firm. For the financial year 2024-25, the firm reported a total contribution of ₹ 20 lakh and an annual turnover of ₹ 35 lakh as per its Statement of Accounts and Solvency. The LLP intends to avail benefits granted to small LLPs under the Limited Liability Partnership Act, 2008.
Q18General Clauses Act s.3(27) - meaning of 'imprisonment' (sim
0 marks easy
Mr. N is caught stealing a bicycle, an offense punishable under the Indian Penal Code. According to Section 379 of the IPC, the punishment for theft was charged against him. Elaborate how the term 'imprisonment' levied under the General Clauses Act, 1897, can be applied in line with the relevant law specified in the IPC?
Q19Interpretation of Statutes - generalia specialibus non derog
0 marks easy
What is the meaning and legal significance of the principle 'generalia specialibus non derogant'? Explain with an example.
Q20FEMA - LRS remittance for education abroad and net salary re
0 marks easy
Answer the following sub-questions regarding remittances under the Foreign Exchange Management Act (FEMA), 1999: