Q(a)Share Buy-back
5 marks medium
Xeon Limited has a paid-up equity capital and free reserves to the extent of ₹ 50,00,000. The company is planning to buy-back shares on the open market for ₹ 4,50,000. The company approaches you for advice with regard to the following:
(i) Is special resolution required to be passed?
(ii) What is the time limit for completion of buy-back?
(iii) What should be ratio of aggregate debt to paid-up capital and free reserves after buy-back?
Q(b)Registers and Records
5 marks medium
M/s. Techno Ltd. maintains Register of Members at its registered office in Mumbai. A group of members residing in Kolkata want to inspect the register of members at Kolkata.
(i) Explain with provisions of Companies Act, 2013, whether the company can keep the Registers and Returns at Kolkata.
(ii) Does Mr. Ranjit, Director (but not a shareholder) of the company have the right to inspect the Register of Members?
Q(c)Bailment and Pledge
4 marks medium
Give four differences between Bailment and Pledge.
Q(d)Surety and Liability
4 marks hard
Mr. D was in urgent need of money amounting ₹ 5,00,000. He asked Mr. K for the money. Mr. K lent the money on the sureties of A, B and C. After one month an agreement between them in case of default in repayment of money by D to K. D makes default in payment. B refused to contribute, examine whether B can escape liability?
Q1Interim Dividend - Companies Act, 2013
4 marks medium
PFE Ltd., secured loans in thousands upto current quarter of financial year 2017-18. The company has decided to debit all about at the preceding three years. Inspite of the loss, the Board of Directors have decided to declare interim dividend of 15% for the current financial year. Examine the decision of PFE Ltd. in light of provisions of declaration of interim dividend under the Companies Act, 2013.
Q1(a)Small Company - Companies Act 2013
6 marks hard
Case: MNP Private Ltd. is a company registered under the Companies Act, 2013 with a Paid Up Share Capital of ₹ 45 lakh and turnover of ₹ 3 crores.
MNP Private Ltd. is a company registered under the Companies Act, 2013 with a Paid Up Share Capital of ₹ 45 lakh and turnover of ₹ 3 crores. Explain the meaning of the "Small Company" and examine the following in accordance with the provisions of the Companies Act, 2013: (i) Whether the MNP Private Ltd. can avail the status of small company? (ii) What will be your answer if the turnover of the company is ₹ 1.50 crore?
Q1(b)CSR Committee - Companies Act 2013
4 marks hard
Case: Rera Ltd. a company incorporated under the Companies Act, 2013, has authorised share capital of ₹ 100 crore, accumulated loss of ₹ 50 crore and securities premium ₹ 100 crore as per the audited accounts for the Financial Year 2016-17.
Rera Ltd. a company incorporated under the Companies Act, 2013, has authorised share capital of ₹ 100 crore, accumulated loss of ₹ 50 crore and securities premium ₹ 100 crore as per the audited accounts for the Financial Year 2016-17. The CEO of the company informed the directors of the company that the Corporate Social Responsibility (CSR) committee is required to be constituted as per the Companies Act, 2013. The directors seek your advice as a professional regarding the criteria required to constitute CSR committee and whether it is applicable to Rera Ltd. or not.
Q1(c)Agency and Principal Liability
4 marks hard
Case: ABC Ltd. sells its products through some agents and it is not the custom in their business to sell the products on cash basis. On 1st March, one of the agents sold goods of ABC Ltd. to M/s. Parvit Pvt. Ltd. (on credit).
ABC Ltd. sells its products through some agents and it is not the custom in their business to sell the products on cash basis. On 1st March, one of the agents sold goods of ABC Ltd. to M/s. Parvit Pvt. Ltd. (on credit) which was involved at the time of stock sale. ABC Ltd. used Mr. Prem for compensation towards his loss caused due to goods sold to M/s. Parvit Pvt. Ltd. Will ABC Ltd. succeed in its claim?
Q1(d)Immovable Property - General Clauses Act 1897
4 marks hard
Case: X owned a land with fifty tainted trees. He sold his land and the timber (obtained after cutting the fifty trees) to Y.
X owned a land with fifty tainted trees. He sold his land and the timber (obtained after cutting the fifty trees) to Y. X wants to know whether the sale of timber (tangibles) relates to sale of immovable property. Advise him with reference to provisions of "General Clauses Act, 1897".
Q2Section 8 Company - Dividend Declaration
2 marks easy
Alpha Ltd., A Section 8 company is planning to declare dividend at the Annual General Meeting for the financial Year ended 31-01-2018. Mr. Chopra is holding 800 equity shares as on date. State whether the act of the company is acceptable as per the provisions of the Companies Act, 2013.
Q3Annual Return - Form MGT-7 - Companies Act, 2013
6 marks medium
As per the provisions of the Companies Act, 2013, every company is required to file with the Registrar of Companies, the Annual Return as prescribed in section 92, in Form MGT-7. Explain the particulars required to be contained in it.
Q3(b)Company Audit and Auditors Rules
3 marks medium
PKC Ltd. wants to appoint Mr. Praveen Kumar, a practicing Chartered Accountant as the statutory auditor of the company and asked the proposed auditor to give a certificate in this regard. What are the contents of the certificate to be issued in accordance with the Companies (Audit & Auditors) Rules, 2014?
Q3(c)General Clauses Act - Repeal of Acts
4 marks medium
Explain briefly any four effects by repeal of an existing Act by control legislation enumerated in Section 6 of the General Clauses Act, 1897.
Q3(d)Legal Interpretation - Mandatory vs Directory Provisions
4 marks medium
Differentiate Mandatory Provision from a Directory Provision. What factors decide whether a provision is directory or mandatory?
Q4Holder in Due Course - Negotiable Instruments Act, 1881
4 marks hard
Case: Mr. V draws a cheque of ₹ 11,000 and gives to Mr. B by way of gift.
Mr. V draws a cheque of ₹ 11,000 and gives to Mr. B by way of gift.
Q4(a)Companies Act - AGM and Filing Returns
4 marks hard
Bazaar Limited called an AGM in order to lay down the financial statements for shareholders' approval. Due to lack of Quorum, the meeting was cancelled. The directors did not file the annual returns with the Registrar. The directors were of the idea that the time for filing of returns within 60 days from the date of AGM would not apply, as AGM was cancelled. Has the company contravened the provisions of Companies Act, 2013? If the company has contravened the provisions of the Act, how will it be penalized?
Q4(b)General Meeting Procedure - Resolutions
4 marks hard
Bazaar Limited issued a notice with the agenda for nine businesses to Denote Limited. Two businesses were regarding appointment of Mr. Saini and Mr. Pratap as directors. The chairman decided to move the resolutions for all the nine businesses together to save the time of the members present. Examine the validity.
Q4(c)Directors Responsibility Statement - Companies Act 2013
4 marks medium
State any four contents of a Directors Responsibility Statement as required under Section 134 of the Companies Act, 2013.
Q4(d)Legal Interpretation - Grammatical Interpretation
4 marks medium
Define Grammatical Interpretation. What are the exceptions to grammatical interpretation?
Q4(d)(ii)Indian Evidence Act - Document Definition
2 marks easy
What is a Document as per the Indian Evidence Act, 1872?
Q4(e)General Clauses Act - Service by Post
2 marks easy
What is the meaning of service by post as per provisions of The General Clauses Act, 1897?
Q5Stop Payment - Negotiable Instruments Act, 1881
4 marks hard
Bholenath drew a cheque in favour of Surendra. After having issued the cheque, Bholenath requested Surendra not to present the cheque for payment and gave a stop payment request to the bank in respect of the cheque issued by him. Decide, under the provisions of the Negotiable Instruments Act, 1881 whether the said acts of Bholenath constitute an offence?
Q5(a)Share Transfer - Companies Act 2013
4 marks hard
Harsh purchased 1000 shares of Singhana Ltd. from Pratik and sent those shares to the company for transfer in his name. The company neither transferred the shares nor sent any notice of refusal of transfer to any party within the period stipulated in the Companies Act, 2013. What is the time frame in which the company is supposed to reply to transfers? Does Harsh, the transferee have any remedies against the company for not sending any intimation in relation to transfer of shares to him?
Q6Underwriter's Commission - Public Issue - Companies Act, 201
6 marks medium
TDL Ltd., a public company is planning to bring a public issue of equity shares in June, 2018. The company has appointed underwriters for getting its shares subscribed. As a Chartered Accountant of the company appraise the Board of TDL Ltd. about the provisions of payment of underwriter's commission as per Companies Act, 2013.
Q6(a)Equity Shares
6 marks medium
Can equity share with differential voting rights be issued? If yes, state the conditions under which such shares may be issued.
Q6(b)Charge and Registration / Trustee for Depositories
6 marks medium
Explain the term 'charge'. State the order in which a charge along with the time limit for registration of charge with the registrar?
OR
Explain provisions for 'Appointment of Trustee for Depositories' under the Companies Act, 2013.
Q6(c)Bailee's Duty and Liability
3 marks hard
Rahul, a transporter, was entrusted with the duty of transporting tomatoes from a rural area to a city by Avinash. Due to heavy rains, the goods were stranded below the market rate in the nearby market where he was stranded for long. Before the tomatoes may perish. Can Avinash recover the loss from Rahul on the ground that Rahul had acted beyond his authority?
Q6(d)Negotiable Instruments Act
5 marks medium
State the rules laid down by the Negotiable Instruments Act, 1881 for ascertaining the date of maturity of a bill of exchange.
Q7Auditor Appointment - Tenure - Companies Act, 2013
3 marks medium
Rupa Limited, a listed company appointed M/s. VG & ASSOCIATES an audit firm as Company's auditor in the Annual General Meeting held on 30-09-2017. Explain the provisions of the Companies Act, 2013 relating to the appointment or reappointment of an auditor in relation to the tenure of an auditor.