Law - 30% Test
Law - 30% Test
Law - 30% Test
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OMR SHEET
Q.N. Q.N. Q.N.
1. Ⓐ Ⓑ Ⓒ Ⓓ 11. Ⓐ Ⓑ Ⓒ Ⓓ 21. Ⓐ Ⓑ Ⓒ Ⓓ
2. Ⓐ Ⓑ Ⓒ Ⓓ 12. Ⓐ Ⓑ Ⓒ Ⓓ 22. Ⓐ Ⓑ Ⓒ Ⓓ
3. Ⓐ Ⓑ Ⓒ Ⓓ 13. Ⓐ Ⓑ Ⓒ Ⓓ 23. Ⓐ Ⓑ Ⓒ Ⓓ
4. Ⓐ Ⓑ Ⓒ Ⓓ 14. Ⓐ Ⓑ Ⓒ Ⓓ 24. Ⓐ Ⓑ Ⓒ Ⓓ
5. Ⓐ Ⓑ Ⓒ Ⓓ 15. Ⓐ Ⓑ Ⓒ Ⓓ 25. Ⓐ Ⓑ Ⓒ Ⓓ
6. Ⓐ Ⓑ Ⓒ Ⓓ 16. Ⓐ Ⓑ Ⓒ Ⓓ 26. Ⓐ Ⓑ Ⓒ Ⓓ
7. Ⓐ Ⓑ Ⓒ Ⓓ 17. Ⓐ Ⓑ Ⓒ Ⓓ 27. Ⓐ Ⓑ Ⓒ Ⓓ
8. Ⓐ Ⓑ Ⓒ Ⓓ 18. Ⓐ Ⓑ Ⓒ Ⓓ 28. Ⓐ Ⓑ Ⓒ Ⓓ
9. Ⓐ Ⓑ Ⓒ Ⓓ 19. Ⓐ Ⓑ Ⓒ Ⓓ 29. Ⓐ Ⓑ Ⓒ Ⓓ
Marks Scored: / 30
Note: Please mention the question number and sub-question properly. Example 1(a)
or 1(i) and so on.
Questions with incorrect question number/sub question number will not be evaluated.
(1)
-NEW SCHEME – May 2023
QUESTION PAPER
Roll No. ………………………
Total No. of Questions- 6 Total No. of Printed Pages – 14
Time Allowed –3 hours Maximum Marks – 100 marks
1. The question paper comprises of two parts, Part I and Part II.
4. Ensure that you receive the question paper relating to both the parts. If you have not
received both, bring it to the notice of the invigilator.
5. Answers to Questions in Part-I are to be marked in OMR answer sheet only. Answers to
questions in Part II are to be written on the descriptive type answer book. Answers to
MCQs, if written in descriptive type answer book, will not be evaluated.
6. OMR Sheet given on the cover page will be in English only for all the candidates, including
for Hindi medium candidates
7. Duration of the examination is 1 hour and 30 mins.
However, we do make changes necessitated by our experts since there is no fixed pattern
that ICAI follows.
2. Whether the term of office of Bhaskar & Co has expired? If yes, on what criteria can we
conclude that their term has expired as per sec 139(2) of companies act?
(a) Borrowings from Financial Institutions is Rs 55 crore of NRC Pvt. Ltd. and rotation of
individual auditor is compulsory after 5 years
(b) Turnover is Rs 200 crore or more and rotation of individual auditor is compulsory after 5
years
(c) Paid up share capital is Rs 15 crore and rotation of individual auditor is compulsory after
5 years
4. Which type of prospectus has been issued by Wipro Ltd. to raise capital from market
(a) Shelf Prospectus
(b) Abridged Prospectus
(c) Red Herring Prospectus
(d) Deemed Prospectus (2 marks)
5. Akhil Pvt Ltd had turnover of Rs 39 crores as at 31 March 2020. The Company had taken
a loan of Rs 39 crores from various banks and financial institutions during the year
ended 31 March 2020. These loans were paid by the Company before 31 March 2020.
The Company is of the view that the auditors’ reporting on adequacy and operating
effectiveness of internal financial controls (IFC) under Section 143(3)(i) of the
Companies Act, 2013 would not be required. The auditors of the Company have a
different view. What should be correct option?
(a) The turnover of Akhil Pvt Ltd is below required threshold and hence IFC will not be
applicable.
(b) The turnover of Akhil Pvt Ltd is below required threshold and loan amount was fully
paid before year end i.e. 31 March 2020. Hence IFC will not be applicable.
(c) The turnover of Akhil Pvt Ltd is below required threshold but loan amount was above
required threshold irrespective of the fact that loan was outstanding as at 31 March 2020
or not, IFC would be applicable.
(d) In the given case because of the repayment of the loan before year end i.e. 31 March
2020, applicability of IFC becomes optional (2 marks)
6. _______________is the process of stopping the flow of the physical cheque issued by a drawer
at some point by the presenting bank en-route to the paying bank branch. In its place an
electronic image of the cheque is transmitted to the paying branch through the clearing house
(a) Truncation
(b) Truncated Cheques
(c) Electronic Cheques
(d) ECS Cheques (2 marks)
7. The members of Martin Limited requisitioned for calling Extra Ordinary General Meeting to
consider some urgent matters. The same was called by the company. Meeting was scheduled
on 31st August, 2018. However, required quorum was not present at the meeting. In this case,
what Martin Limited shall do?
(a) Martin Limited shall adjourn the meeting to the same day in the next week at the same
time and place;
(b) Martin Limited shall adjourn the meeting to such other day at such other time and place;
(c) The meeting shall be cancelled;
(d) Martin Limited shall proceed ahead with the available quorum; (1 mark)
8. Mr. Ayan issued a cheque amounting to INR 45,000 dated 2nd February 2021 to Mr. Gandhi
which was deposited by Mr. Gandhi on 16th March 2021 in his bank account. The said cheque
got dishonored on 17th March 2021 by the bank of Mr. Ayan citing insufficient funds in the
account of Mr. Ayan. Then Mr. Gandhi demanded the payment from Mr. Ayan by issuing the
notice on 31st March 2021 which was received by Mr. Ayan on 2nd April 2021. Assuming
that Mr. Ayan failed to make the payment within stipulated time, what is the last date by which
Mr. Gandhi should have made a complaint in the court?
(a) 17th May 2021
(b) 2nd May 2021
(c) 17th April 2021
(d) 30th April 2021 (2 marks)
10. Persons dealing with the company can safely presume that the internal proceedings have been
observed properly. They need not inquire about internal proceedings. This is called _________
(a) doctrine of constructive notice
(b) doctrine of intra virus
(c) doctrine of ultra- virus
(d) doctrine of indoor management (1 mark)
11. Which of the following cases requires passing of special resolution & regional director
confirmation?
(a) from one premise to another premise in the same city.
(b) from one city in the jurisdiction of one ROC to another city in the jurisdiction of another
ROC within the same state.
(c) from one state to another.
(d) from one city to another city in jurisdiction of one ROC to another ROC within the same
state. (1 mark)
12. Extra limited is a growing company and requires additional funds for expansion from time to
time. They are following the same process for making an offer to public and then issue those
shares. This is very time and energy consuming for them. Kindly advise them if there is any
way out.
(a) during first offer they shall file prospectus with a validity on one year, so subsequent
offer issued during the period of validity of that prospectus, no further prospectus is
required.
(b) during first offer they shall file prospectus with a validity on two years, so subsequent
offer issued during the period of validity of that prospectus, no further prospectus is
required.
14. Who can apply to the tribunal to have the variation cancelled?
(a) holders of not less than 20% of the issued shares of that class who had not assented to the
variation.
(b) holders of not less than 10% of the issued shares of that class who had assented to the
variation.
(c) holders of less than 10% of the issued shares of that class who had not assented to the
variation.
(d) holders of not less than 10% of the issued shares of that class who had not assented to the
variation. (1 mark)
15. On which of the following grounds the voting right of a shareholders lost on________
(a) non - payment of calls
(b) non - payment of the amount guaranteed by him
(c) being inactive on managerial decisions
(d) all of the above (1 mark)
16. Where can a company maintain its register if special resolution is passed?
17. ABC infrastructures limited is a listed company quoted at national stock exchange. The
company closed its register members in June and august, 2017 for 12 and 21 days respectively.
The CFO of company has informed the company secretary to consider closing of register in
December for another 15 days for some strategic reasons. Referring to the provisions of
companies act, 2013. Examine the validity of the above action of the company.
(a) valid, as the closure of register of members by company each time is not exceeding 30
days.
(b) invalid, as company cannot go for closure of register of members more than twice in a
year.
(c) invalid, as the period of closing register of members exceeding 30 days in a year.
(d) invalid, as the period of closing the register of members by the company is exceeding 45
days in a year. (2 marks)
18. Shares which are issued by a company to its directors or employees at a discount or for an
intellectual consideration:
(a) Equity Shares
(b) Employee Stock option Plan
(c) Sweat Equity Shares
(d) Redeemable preference shares (1 mark)
19. Mr. N is a Company Secretary of Mayo Private Limited. For calling Company’s Annual
General meeting, Mr. N has to issue notice of that meeting before stipulated period of time.
Draft notice is ready with him. However, he is confused on agenda items for which he has to
PART – II 70 marks
1 (a) Board of directors of Light Ltd. decides to change the name of the company 6
to Shine Ltd. Certain members of the company object to the Board's decision
to change the name of the company on the ground that the change will affect
their rights. Examining the provisions of the Companies Act, 2013, state :
(i) The implications of change in name.
(ii) Whether the objection of the members be tenable ?
(b) Shalin Limited has during the financial year 2019-20, made private 6
placement of 15,00,000 equity shares of Rs 10 each at a issue price of Rs 15
per share as below.
(i) No approval of the shareholders has been obtained for the private
placement.
(ii) The subscription amount was deposited in the current account of the
company and was utilized before allotment.
(iii) The private placement is made to 230 persons including 10 qualified
institutional bidders.
(iv) Out of 70 persons to whom private placement is made 10 persons have
paid the subscription amount in cash.
State the provisions of the Companies Act, 2013 and the Rules made
(d) Mr. Hemal donated Rs 50,000 to an NGO by cheque for sponsoring the 4
education of one child for one year. Later on he found that the NGO was a
fraud and did not engage in philanthropic activities.
He gave a "stop payment" instruction to his bankers and the cheque was not
honoured by the bank as per his instruction. The NGO has sent a demand
notice and threatened to file a case against Hemal. Advise Mr. Hemal about
the course of action available under the Negotiable Instruments Act, 1881.
2 (a) The Board of directors of Wise Ltd., a company incorporated under the 6
Companies Act, 2013 and listed at Bombay Stock Exchange, at its meeting
resolves to issue certain number of shares with differential dividend and
voting rights. The Board of directors presents the following information :
(i) The Board has decided to keep the shares with differential dividend and
voting rights at 76% of the total voting power
(ii) The company has defaulted in filing financial statement for 3 financial
years but company has regularly filed annual return in all 3 financial year.
Examining the provisions of the Companies Act, 2013 and the rules framed
thereunder, stating the conditions, if any, decide whether the company can
proceed with the execution of Board’s resolution for issue of shares with
differential rights in respect of dividend and voting
(b) Decent Ltd. was incorporated under the Companies Act, 2013 on 1st January, 6
2020. Explaining the provisions of the Companies Act, 2013 —
(i) When should the first financial year of the company should be closed
(ii) State as to when should have the company held its first annual general
(c) On a Bill of Exchange for Rs 1 lakh, X’s acceptance to the Bill is forged. ‘A’ 5
takes the Bill from his customer for value and in good faith before the Bill
becomes payable. State with reasons whether ‘A’ can be considered as a
‘Holder in due course’ and whether he (A) can receive the amount of the Bill
from ‘X’.
3 (a) The Articles of Association of Organic Limited require the personal presence 5
of 7 members to constitute quorum of General Meetings. The company has
930 members as on the date of meeting.
The following persons were present in the extra-ordinary meeting to consider
the appointment of Managing Director:
(i) Anil, the representative of Governor of Maharashtra.
(ii) Bimal and Chetan, shareholders of preference shares,
(iii) Dilip, representing Green Limited and Blue Limited
(iv) Ela, Ferry, Gauri and Hema as proxies of shareholders.
Can it be said that the quorum was present in the meeting?
(b) Skippe Bank Limited proposes to issue series of debentures frequently within 4
a period of one year to raise the funds without undergoing the complicated
exercise of issuing the prospectus every time of issuing a new series of
debentures. Examine the feasibility of the proposal of Skipee Bank Limited
having taken into account the concept of deemed prospectus dealt with under
the provisions of the Companies Act, 2013.Skipee Bank Limited proposes to
issue series of debentures frequently within a period of one year to raise the
funds without undergoing the complicated exercise of issuing the prospectus
(d) A draws a bill on B. B accepts the bill without any consideration. The bill is 4
transferred to C without consideration. C transferred it to D for value.
Decide-
(a) Whether D can sue the prior parties of the bill, and
(b) Whether the prior parties other than D have any right of action inter se?
Give your answer in reference to the Provisions of Negotiable Instruments
Act, 1881.
(b) During the course of audit of Jyoti Ltd., the auditor observes that the 6
company has committed an offence resulting in fraud in which certain
officers are involved. Analyse the extent of obligations of the statutory
auditor and the manner in which he would comply with his statutory
obligations in this regard
5 (a) Rohit, a member of Movers (Pvt.) Ltd. transfers his shares to Raj. Raj 5
submitted the duly executed instrument of transfer. The Board of directors of
the company at its meeting rejected the transfer arbitrarily without assigning
any reason. The Articles of the company confer upon the Board to approve or
disapprove the transfer. Examining the provisions of the Companies Act,
2013 :
(a) Advise Raj, the legal remedy available to him.
(b) What shall be your answer in case a relative of Raj wants to take any
action against the company to register the transfer ?
(b) The Articles of Association of Baker Ltd. empowered the directors to borrow 4
money within the limit of Rs 50 lakh. The Articles further provided that the
directors can also exceed the borrowing limit of Rs 50 lakh with the consent
of the Company in general meeting. The directors of Baker Ltd. took the loan
of `75 lakh from Ravi being one of the directors of Baker Ltd. without
obtaining the consent of the Company in general meeting. The Company,
Baker Ltd. refused to repay the loan amount to Ravi. In the light of decided
case law, state whether Ravi will be able to get his money back from the
Company.
(c) Grover Limited was incorporated in 1995 in the town of Salem. Its main 4
business is manufacturing high quality steel. It is in the process of appointing
statutory auditors for the financial year 2021-
Advise whether the following persons are qualified to be appointed as
statutory auditor of the Grover Limited:
(1) Aaha, a qualified chartered accountant, is an employee of Grover Limited.
(2) Atharv is a practicing Chartered Accountant indebted to Grover Limited
for rupees 3 lakh.
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