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CA-INTER BATCH- 4 NOV 24

TEST- CHAPTER (4,7 & 10)

Marks- 50 QUESTION PAPER Time – 1.5 Hours

Multiple Choice Questions. (1 Marks Each)
1. The Articles of Association of a private limited company state that the company may issue preference
shares which will have preference with respect to payment of dividend only but no preference as to the
repayment of capital, in the case of winding up. Is it possible for the company to issue such preference shares?
(a) No; as per section 43 preference shares should have both preferences.
(b) No; this will become an equity share as per section 43.
(c) Yes; because as per section 43 preference shares should have any one preference.
(d) Yes; because Articles of Association of the company allow issue of such preference shares and the issuing
company is a private limited company.

2. Where vacancy in the office of auditor is caused by the resignation of an auditor, such appointment shall
be approved by the company at a general meeting convened within _______ of the recommendation of the
Board.
(a) one month
(b) three months
(c) six months
(d) 15 days

3. Amount required for redemption of preference shares can be used from _____.
(a) Profits only
(b) Amount received through fresh issue
(c) Amount which is foregone by the equity shareholders since it is the amount related to the shareholders
(d) Both (a) and (b)

4. The Board of Directors of Shiva Limited did not call the Extra Ordinary General Meeting within 21 days
from the date of receipt of requisition from members, then the requisitionists may themselves call a meeting
within a period of ____ from the date of requisition.
(a) 15 days
(b) 30 days
(c) 1 month
(d) 3 months

5. A person who himself, or whose partner or relative is indebted to the company, or its subsidiary, or its
holding or associate company or a subsidiary of such holding company in excess of Rs. ____ is disqualified
from the appointment of auditor.
(a) 4 Lakh
(b) 5 Lakh
(c) 50,000
(d) 1 Lakh

6. Plain Vanilla shares is the other name of _____ shares.

(a) Equity shares with same voting rights
(b) Equity shares with differential voting rights
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(c) Preference shares
(d) Cumulative preference shares

7. A general meeting of the company is to be held on 30th August, 2020. The company has not paid dividend
in respect of its preference shares for the financial year 2018-19 as well as 2019-20. In such case preference
shareholders:
(a) will not have the rights to vote because preferential shareholders have no right to vote
(b) will have the right to vote because dividend has not been paid for the last two years
(c) will not have the right to vote because only equity shareholders can vote in general meetings
(d) will have right to vote because preference shareholders have the right to vote in general meetings

8. The minute book can be kept at _______.

(a) The Registered office
(b) Any other place decided by the Board
(c) The registered office or any other place decided by the Board
(d) In case of general meeting at the registered office and in case of board meeting at the registered office or
any other place as decided by the Board.

9. Audi Alteram Partem means ____.

(a) Giving reasonable opportunity of being heard
(b) Giving final notice
(c) To suggest an alternate
(d) None of above

10. As per Companies Act, 2013, a company should maintain debt equity ratio post buy back is –
(a) 1:1
(b) 2:1
(c) 3:1
(d) 1:3

11. Company shall inform the Central Government in Form ______ within 30 days of appointment of cost
auditor.
(a) CRA-1
(b) CRA-2
(c) CRA-3
(d) MGT-14

12. In case the meeting was called by requisitionists under section 100 of the Act and quorum is not present
within the prescribed time then _____.
(a) Meeting will be adjourned to the same day in the next week at the same time.
(b) Meeting shall stand cancelled
(c) Members personally present shall be quorum
(d) Number of requisitionists will be quorum

13. A company can issue redeemable preference shares for a period exceeding 20 years in case of –
(a) Agricultural companies

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(b) Infrastructural projects
(c) Coal and electric projects
(d) Hydro-electric companies

14. Where a share capital of the company is divided into different classes of shares, the rights attached to the
shares of any class may be varied with the consent in writing of the holders of not less than _____ of the
issued shares of that class or by means of a special resolution passed at a separate meeting of the holders of
the issued shares of that class;
(a) One-fourth
(b) 50%
(c) Three-fourths
(d) 75%

15. In case of allotment of debenture, company need to deliver certificate of debenture allotted within a
period of ____.
(a) 6 months from the date of application for debentures
(b) 6 months from the date of allotment
(c) 2 months from the date of allotment
(d) 2 months from the application for debentures

Descriptive Questions

Q1. KTM Limited decides to issue Sweat Equity Shares to its employees for which it has passed the required
special resolution and completed other formalities on it. Decide the validity of the following in respect the
issue of Sweat Equity Shares:
(a) Decide to issue the shares to an employee on a discount who is recruited as a temporary employee and
joined in the company five months ago.
(b) Decided to allot shares at discount to a part-time director of the company. (4 Marks)

Q2. 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. (5 Marks)

Q3. Advise whether the auditor appointment by a private company with paid up share capital of Rs. 22 crore
in the following cases are valid for the financial year 2022-23.
(i) Deva, (an Individual auditor) who has been the auditor since financial year 2014-15.
(ii) Firm XYZ & Co. who completes 10 years continuously, at the end of financial year 2018-19. Yash is a
partner in XYZ & Co.
(iii) Firm ABC & Co., in which Yash is also a partner in addition to being a partner of XYZ & Co.(6 Marks)

Q4. Board of Directors of RPS Limited gives you the following information extracted from the company’s
financial statements as at 31st March, 2023:
Authorized equity share capital Rs. 10 crore
(1 crore shares of Rs. 10 each)
Paid-up equity share capital Rs. 5 crore
General Reserve Rs. 5 crore
Debenture Redemption Reserve Rs. 2 Crore

Board of Directors by a resolution passed at its meeting decides to go for buy-back of shares to the extent of
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20% of the company’s paid up share capital and free reserves. Examine the validity of the Board’s resolution
with reference to the provisions of the Companies Act, 2013. (5 marks)

Q5. Pravin is a Auditor of Nagpur Power Limited having Paid up share capital of Rs. 50 Crore. Advise him
in accordance with the provisions of the Companies Act, 2013 as to whether he can render the following
services.
(a) Pravin wants to conduct Internal Audit of Heaven Private Limited subsidiary of Nagpur Power Limited.
(b) Pravin wished to “design and implement financial system” and offer management services to Nagpur
Power Limited. (4 Marks)

Q6. The Articles of Association of ABC Limited require the personal presence of 7 members to constitute
quorum of General Meetings. The company has 870 members as on date of meeting. The following persons
were present in the extra-ordinary meeting to consider the appointment of Managing Director:
(i) A, the representative of Governor of Karnataka.
(ii) B and C, shareholders of preference shares,
(iii) D, representing Green Limited and Blue Limited,
(iv) E, F, G and H as proxies of shareholders.
Can it be said that the quorum was present in the meeting? (5 Marks)

Q7. Shree Limited has an Authorized Capital of 10,00,000 equity shares of the face value of Rs. 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 Rs. 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. (6 Marks)

ALL THE BEST

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