Q1Signing of financial statements under Companies Act 2013
0 marks hard
Case: Bharat Sanskar Limited having its registered office at Haridwar, is a listed public company. It is registered with an authorised share capital of ₹300 crore divided into 30 crore equity shares of ₹10/- each. The paid-up share capital of the company is ₹200 crore divided into 20 crore equity shares of ₹10/- each. The company is very renowned in manufacturing and supplying devotional items such as high-quality worship materials, fragrances, various types of decorative goods, idols etc. The Board of Directors of the company constituted of Sagar as the Managing Director and Hari, Rahi, Sansar & Na…
The Companies Act, 2013 provides that the financial statement should be approved by the Board of Directors, signed by the prescribed authorities and submitted to the auditors for their report. Accordingly, the financial statements of Bharat Sanskar Limited shall be signed by:
(A) Sagar, Raju and Sonu
(B) Sansar, Hari, Raju and Sonu
(C) Sagar, Sansar, Raju and Moti
(D) Sagar, Sansar, Raju and Sonu
Q2Signing of Board's report under Companies Act 2013
0 marks hard
Case: Bharat Sanskar Limited having its registered office at Haridwar, is a listed public company. It is registered with an authorised share capital of ₹300 crore divided into 30 crore equity shares of ₹10/- each. The paid-up share capital of the company is ₹200 crore divided into 20 crore equity shares of ₹10/- each. The company is very renowned in manufacturing and supplying devotional items such as high-quality worship materials, fragrances, various types of decorative goods, idols etc. The Board of Directors of the company constituted of Sagar as the Managing Director and Hari, Rahi, Sansar & Na…
As per provisions of company law, the Board's report with annexures thereto of the above company is required to be duly signed by -
(A) Sagar only
(B) Sagar and Hari
(C) Sagar and Raju
(D) Sagar and Sonu
Q3Penalty for non-filing of financial statements with Registra
0 marks hard
Case: Bharat Sanskar Limited having its registered office at Haridwar, is a listed public company. It is registered with an authorised share capital of ₹300 crore divided into 30 crore equity shares of ₹10/- each. The paid-up share capital of the company is ₹200 crore divided into 20 crore equity shares of ₹10/- each. The company is very renowned in manufacturing and supplying devotional items such as high-quality worship materials, fragrances, various types of decorative goods, idols etc. The Board of Directors of the company constituted of Sagar as the Managing Director and Hari, Rahi, Sansar & Na…
In the above case scenario, the company failed to file copies of financial statement along with all the documents annexed to the financial statement adopted at the Annual General Meeting with the Registrar. In this context, which of the following statements is correct?
(A) Sagar, Raju and Sonu shall be liable to a penalty.
(B) The company, Sagar and Raju shall be liable to a penalty.
(C) The company, Sagar and Sonu shall be liable to a penalty.
(D) Sagar, Raju and Sonu shall be liable to a penalty.
Q4Preservation period for books of accounts under Companies Ac
0 marks hard
Case: Bharat Sanskar Limited having its registered office at Haridwar, is a listed public company. It is registered with an authorised share capital of ₹300 crore divided into 30 crore equity shares of ₹10/- each. The paid-up share capital of the company is ₹200 crore divided into 20 crore equity shares of ₹10/- each. The company is very renowned in manufacturing and supplying devotional items such as high-quality worship materials, fragrances, various types of decorative goods, idols etc. The Board of Directors of the company constituted of Sagar as the Managing Director and Hari, Rahi, Sansar & Na…
As per provisions of the Companies Act, 2013, the act of the company in destruction of all books of account together with relevant vouchers was not correct because –
(A) The books of accounts etc. relating to a period not less than 6 preceding financial years are required to be kept in good order.
(B) The books of accounts etc. relating to a period not less than 8 preceding financial years are required to be kept in good order.
(C) The books of accounts etc. relating to a period not less than 10 preceding financial years are required to be kept in good order.
(D) The books of accounts etc. relating to a period not less than 12 preceding financial years are required to be kept in good order.
Q5Rules of statutory interpretation
0 marks easy
A method of interpretation which brings into effect provisions for improving the conditions of certain classes of people who are under privileged or who have not been treated fairly in the past.
(A) Rule of Literal Construction
(B) Rule of Harmonious Construction
(C) Rule of Beneficial Construction
(D) Rule of Exceptional Construction
Q6Subsidiary holding shares in holding company
0 marks easy
Win Limited bought 15% shares of Om Limited in the year 2018. In the year 2020 it formed a trust for its employees and donated its 15% shares of Om Limited along with ₹10,00,000 to the trust and became its trustee. In February 2023, Om Limited acquired 55% stake in Win Limited through an in-house deal. Can a subsidiary company hold shares in its holding company justifiably in this situation?
(A) Win Limited cannot represent itself as a trustee after it becomes a subsidiary of Om Limited.
(B) Win Limited can represent itself as a trustee only after it was a holding company of Om Limited.
(C) Win Limited cannot hold shares as a trustee even though it is a subsidiary company.
(D) Win Limited can do so as it is holding shares in Om Limited prior to becoming a subsidiary of it.
Q7Maturity date calculation for bill of exchange under Negotia
0 marks easy
The date of maturity of a bill payable hundred days after sight and which is presented for sight on 4th May, 2023, is:
(A) 13 August, 2023
(B) 14 August, 2023
(C) 15 August, 2023
(D) 16 August, 2023
Q8Listed company status for private company with listed NCDs
0 marks easy
Newage Private Limited issued 9% Non-convertible Debentures worth ₹10 lakh and thereafter, the directors contemplated to get them listed. After due formalities, these privately placed non-convertible debentures of ₹10 lakh were listed. Which of the following options is applicable in the given situation:
(A) Newage Private Limited shall be considered as a listed company.
(B) Newage Private Limited shall not be considered as a listed company.
(C) Newage Private Limited shall be considered as a listed company only when minimum amount of listed privately placed non-convertible debentures is ₹15 lakh.
(D) Newage Private Limited shall be considered as a listed company only when minimum amount of listed privately placed non-convertible debentures is minimum ₹20 lakh.
Q9Prosecution under Companies Act section 447 and IPC for capi
0 marks easy
A company enters into the process of reducing capital. Mr. Shah is the concerned officer designated for preparing the list of creditors to record their reservation and reach a settlement under section 66 of the Companies Act, 2013. Mr. Shah while preparing such list deliberately conceals the name of Ms. Ramya who is one of the company's creditors and objects to the reduction, whereas makes misstatement in context of some other creditors' claims. The offence committed by Mr. Shah is punishable under: (i) section 447 of the Companies Act, 2013, and (ii) sections 417 read with 415 of the Indian Penal Code, 1860 (as dishonest concealment is involved). You are required to select the most appropriate option in context of the offence committed by Mr. Shah:
(A) Mr. Shah shall be liable to be prosecuted under both the Companies Act, 2013 and the Indian Penal Code 1860, but shall be punished under either of the Companies Act, 2013 or the Indian Penal Code, 1860.
(B) Mr. Shah shall be liable to be prosecuted under both the Companies Act, 2013 and the Indian Penal Code, 1860, but shall be punished under the Companies Act, 2013 or the Indian Penal Code, 1860 where maximum punishment is lower.
(C) Mr. Shah shall be liable to be prosecuted and punished under either of the Companies Act, 2013 or the Indian Penal Code, 1860.
(D) Mr. Shah shall be liable to be prosecuted and punished under both the Companies Act, 2013 and the Indian Penal Code, 1860.
Q10Filing of Annual Return with Registrar after adjourned AGM
0 marks easy
Vichar Vimarsh Limited called its Annual General Meeting on 20th September, 2022 to consider and adopt the financial result as of 31st March, 2022. Due to want of quorum the meeting was adjourned and the adjourned meeting was held on 27th September, 2022. What is the last date of filing of Annual Return with the Registrar of Companies:
(A) 60 days from the date of 31st March, 2022
(B) 60 days from the date of 20th September, 2022
(C) 60 days from the date of 27th September, 2022
(D) 60 days from the date of 30th September, 2022
Q11Foreign register of members — notice to Registrar under Comp
0 marks easy
The paid-up share capital of Golden Shoes Limited is ₹25,00,000 divided into 2,50,000 equity shares of ₹10 each. Some of the shareholders holding 2,500 equity shares are residents of London for whom a foreign register of shareholders is opened thereat on November 1, 2022. Advise Golden Shoes Limited, within how much time after opening of 'foreign register', it is required to file with the Registrar of Companies, a notice of situation of the London office.
Q12Validity of article provision restricting calls-in-advance;
0 marks easy
Satvikya Private Limited was formed on 25th April, 2020. At the time of formation, it had provided in its articles that the company shall not be permitted to accept or keep advance subscription or call money in advance. However, in August 2023, the need was felt to amend the articles with respect to retention of calls-in-advance. Decide whether the provision inserted in the articles at the time of formation of the company can be considered as void?
Q13Penalty for delayed dividend payment; cumulative preference
0 marks easy
The dividend amounts received or receivable on equity shares held by Mr. Vaibhav for the financial year 2021-22 were as follows: (1) Suvaas Limited — Dividend Declaration Date: 25.08.2022, Dividend Amount: ₹800, Remarks: Dividend was paid on 23.10.2022. (2) Bhandol Nidhi Limited — Dividend Declaration Date: 04.09.2022, Dividend Amount: ₹100, Remarks: Dividend was not paid within the stipulated time period. Also, Mr. Vaibhav holds 100 cumulative preference shares of face value ₹1,00,000 in aggregate of Jipanti Limited on which dividend payable is at the rate of 8% p.a. However, during financial year 2021-22, Jipanti Limited did not earn any profits. In the context of the aforesaid case-scenario, please answer the following questions:
Q14Remuneration of auditors under section 142 of Companies Act
0 marks easy
Yellow Private Limited is engaged in the business of manufacturing premium quality rattle toys. They have a huge market for their toys all over India. The company has appointed its statutory auditors for the financial year 2022-2023. The engagement letter of the auditors was signed with a clause that fee to be mutually decided. Directors of the company have approached you to seek your advice for provisions related to remuneration of auditors as per the provisions of the Companies Act, 2013.
Q15Sub-division of shares under section 61 of Companies Act 201
0 marks easy
Shree Limited has an Authorized Capital of 10,00,000 equity shares of the face value of ₹100 each. Some of the shareholders expressed their opinion in the Annual General Meeting that it is very difficult for them to trade in the shares of the company in the stock market and requested the company to reduce the face value of each share to ₹10 and increase the number of shares to 1,00,00,000. Examine, whether the request of the shareholders is considerable, as per the provisions of the Companies Act, 2013.
Q16Secured deposits — creation of charge on tangible assets onl
0 marks easy
A Limited Company raised a secured deposit of ₹80 crore on 30th June, 2023 from the public on interest @ 12% p.a. repayable after 3 years. The charges have been created within the prescribed time in favour of the trustee of depositors against the deposit taking the following assets of the company as security: Land & Building ₹55 crore, Plant & Machinery ₹15 crore, Factory Shed ₹10 crore, Trade Mark ₹10 crore, Goodwill ₹15 crore. Decide on the validity of the charges created with reference to the provisions of the Companies Act, 2013.
Q17Discharge of surety when principal debtor is released — sect
0 marks easy
Mr. Sanjeev is dealing in high quality timber. Mr. Amit wants to purchase the timber from him on credit which is to be used in renovation of his house. Mr. Pramod gives a guarantee to Mr. Sanjeev for timber to be supplied by Mr. Sanjeev to Mr. Amit. Mr. Sanjeev supplied the required timber to Mr. Amit. Afterwards, Mr. Amit embarrassed and contracts with his creditors (including Mr. Sanjeev) to assign to them his property in consideration of their releasing him from their demands. On due date, Mr. Sanjeev filed the suit against Mr. Pramod for recovery of the payment of timber due to Mr. Amit. Explain, with reference to the Indian Contract Act, 1872, whether Mr. Sanjeev can claim the payment from Mr. Pramod?
Q18Negotiation by legal representative of deceased endorser — s
0 marks easy
Mr. Vibhav made endorsement of a bill of exchange amounting ₹35,000 to Mr. Rishab. But, before the same could be delivered to Mr. Rishab, Mr. Vibhav passed away. Mr. Somesh, son of Mr. Vibhav, who was the only legal representative of Mr. Vibhav approached Mr. Rishab and informed him about his father's death. Now, Mr. Somesh is willing to complete the instrument which was executed by his deceased father. Referring to the relevant provisions of the Negotiable Instruments Act, 1881, decide, whether Mr. Somesh can complete the instrument in the above scenario?
Q19Gender-neutral interpretation under section 13 of General Cl
0 marks easy
Mrs. Neelu Chandra was director in Laddoo Sweets Private Limited. Once while dealing with a supplier of raw materials for the company, she agreed to get some secret commission from the supplier for making the deal. Afterwards, on finding the facts, the company filed the suit against Mrs. Neelu Chandra. She contended that section 166 of the Companies Act, 2013, provides 'A director of a company shall not achieve or attempt to achieve any undue gain or advantage either to himself or to his relatives, partners, or associates and if such director is found guilty of making any undue gain, he shall be liable to pay an amount equal to that gain to the company.' She contended that section 166 is applicable to male directors only, and she being female will not be liable. In the light of the provisions of the General Clauses Act, 1897, decide whether she is bound by the provisions of section 166 of the Companies Act, 2013?
Q20Without Prejudice — harmonious aid to statutory interpretati
0 marks easy
Explain the meaning of 'Without Prejudice' as a harmonious aid to interpretation of statutes. Support your answer with the help of an example.