CA Inter Suggested answers for Corporate Law and Other Laws Subject
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CA Inter Suggested answers for Corporate Law and Other Laws Subject
ICAI CA Inter Dec 2021 Question 1 (a) (i)
Chhavish, an India citizen and resident of India, formed “Ekta Readymade Garments Ltd”. as One Person Company on 1st April 2018 with his wife Mrs. Jyoti as nominee. The authorized and paid-up share capital of the company is ?35 lakhs. He got in touch with a readymade garments buyer and was expecting to receive a substantial order by August 2020. To expand the production capacity, the company decided to invest an additional capital of Rs. 10 lakhs in plant and machinery. As a result, the company’s authorized and paid-up share capital is now Rs. 45 Lakhs. Promoter of the company seeks your advice. Considering the case and referring to the provisions of the Companies Act, 2013, advise:
ICAI CA Inter Dec 2021 Question 1 (a) (ii)
Following is the extract of the Balance sheet of Beltex Ltd. as on 31st March,2020:
| Particulars | Amount | Amount |
| Equity & Liabilities | ||
| (1) Shareholder’s | ||
| a) Share Capital: | ||
| Authorized Capital: | ||
| 10,000 12% Preference Shares of Rs. 10 each | 1,00,000 | |
| 1,00,000 equity shares of Rs. 10 each | 10,00,000 | 11,00,000 |
| Issue & Subscribed Capital: | ||
| 8000, 12% Preference Shares of Rs. 10 each fully paid up | 80,000 | |
| 90,000 equity shares of Rs. 10 each, Rs. 8 paid up | 7,20,000 | |
| b)Reserve and Surplus | ||
| General Reserve | 1,20,000 | |
| Capital Reserve | 75,000 | |
| Securities Premium | 25,000 | |
| Surplus in statement of P & L | 2,00,000 | 4,20,000 |
| (2) Non-Current Liabilities: | ||
| (a)Long-term Borrowing: | ||
| Secured Loan: 12% partly convertible | ||
| Debentures @ Rs. 100 each | 5,00,000 |
On 1st April, 2020 the company has made final call at Rs. 2 each on 90,000 Equity Shares. The call Money was received by 25th April, 2020. Thereafter the company decided to capitalize it’s reserves by way of bonus @ 1 share for every 4 shares to existing shareholders.
Answer the following questions according to the Companies Act, 2013, in above case:
(B) Calculate the amount to be capitalized from free reserves to issue bonus shares.
(C) If the company did not ask for the final call on April 1st, 2020, can it still issue bonus shares to its still issue bonus shares to its members?
ICAI CA Inter Dec 2021 Question 1 (b) (i)
Mr.Raman, a Chartered Accountant, was appointed as an auditor of Surya Distributes Ltd., in the AGM of the company held in August. 2020, in which he accepted the assignment. Later on in November 2020, he joined as a partner in the Consultancy firm where Mr.Som is also working as a finance executive of Surya Distributes Ltd. Explaining the provisions of the Companies Act, 2013, decide whether Mr.Raman is required to vacate the office as an auditor.
ICAI CA Inter Dec 2021 Question 1 (b) (ii)
Managing Director of ABC Ltd. himself appointed Mr.Aakash, a practicing chartered accountant, as first auditor of the company. Is it a valid appointment? Also explain the provisions of the Companies Act, 2013, in this regard?
ICAI CA Inter Dec 2021 Question 1 (b) (iii)
The Board of Directors of ABC Company Limited at its board meeting declared a dividend on its paid-up equity shares capital, which was later on approved by the company’s Annual General Meeting. In the meantime, the directors diverted the amount of total divided to be paid to shareholders after 45 days of declaration.
Examining the provisions of the Companies Act, 2013, state whether the act of directors is in violation of the provisions of the Companies Act, 2013. Also explain what are the consequences of the above act of directors.
ICAI CA Inter Dec 2021 Question 1 (c)
Due to urgent need of money amounting to Rs. 3,00,000, Pawan approached to Raman and asked him for the money. Raman lent the money on the guarantee of Suraj, Tarun and Usha. However, there is no contract between Suraj, Tarun and Usha. Pawan makes default in payment and Suraj pays full amount to Raman. Suraj, afterwards, claimed contributed from Tarun and Usha. Tarun refused to contribute on the basis that there is no contract betwwen Suraj and him. Examine referring to the provisions of the India Contract Act, 1872, whether Tarun can escape from his liability.
ICAI CA Inter Dec 2021 Question 1 (d)
‘M’ is the holder of a bill of exchange made payable to the order of ‘F’.
ICAI CA Inter Dec 2021 Question 2 (a) (i)
Explain the provisions of e-voting in an annual general meeting in the following cases as per the Companies Acts, 2013:
‘A’ and his wife ‘B’ has joint Demat Account in Alfa Investment Ltd. In such a case, who will cast the vote in e-voting system?
ICAI CA Inter Dec 2021 Question 2 (a) (ii)
Explain the provisions of e-voting in an annual general meeting in the following cases as per the Companies Acts, 2013:
AGM is going to be held on 07-09-2020. Then, what will be the e-voting period and the time of closing?
ICAI CA Inter Dec 2021 Question 2 (b) (i)
Examine the validity of the following with reference to the relevant provisions of the Companies Act, 2013:
(i) The Board of Directors of a company refuse to convene the extraordinary general meeting of the members on the ground that the requisitionists have not given an explanatory statement for the resolution proposed to be passed at the meeting.
(ii) The Board of Directors refuse to convene the extraordinary general meeting on the ground that the requisitions have not been signed by the joint holder of the shares.
(iii) Adjournment of extraordinary general meeting called upon the requisition of members on the ground that the quorum was not present in the meeting.
ICAI CA Inter Dec 2021 Question 2 (c)
Shyam, at the request of Govind, sells goods which were, in the possession of Govind. However, Govind had no right to dispose of such goods. Shyam did not know this and handover the proceed of the sale to Govind. Afterwards, Manohar, who was the true owner of the goods, sued Shyam and recovered the value of the goods. In the light of the provisions of the India Contract Act, 1872, answer the following questions:
(i) Is Govind liable to indentify to Shyam for his payment to Manohar?
(ii) What will be the liability of Govind if the goods is a prohibited drug?
ICAI CA Inter Dec 2021 Question 2 (d)
A is a payee and holder of a bill of exchange. He endorses it in blank and delivers it to B. B endorses it in full to C or order. C without endorsement transfers the bill to D. state giving reasons whether D, as bearer of the bill of exchange, is entitled to recover the payment from A or B or C.
ICAI CA Inter Dec 2021 Question 3 (a) (i)
RD Ltd. issued a prospectus. All the statements contained therein were literally true. It also stated that the company had paid dividends for a number of years but did not disclose the fact that the dividends were not paid out of trading profits but out of capital profits. An allotee of shares claims to avoid the contract on the ground that the prospectus was false in material particulars. Decide that the argument of shareholder, as per the provision of the Companies Act, 2013, is correct or not?
ICAI CA Inter Dec 2021 Question 3 (a) (ii)
Define “Small Company”.
ICAI CA Inter Dec 2021 Question 3 (b) (i)
Referring to the provisions of the Companies Act, 2013, regarding appointment of auditors, answer the following:
XYZ Ltd. is a newly established company owned by the Central Government. State the provisions regarding appointment of its first auditor.
ICAI CA Inter Dec 2021 Question 3 (b) (ii)
Mr. Kamal is the Auditor of XYZ Limited, which is a Government company. He has resigned on 31st December 2020 while the financial year of the company ends on 31st March 2021. Explain the provisions regarding filling of such vacancy. Would your answer differ if it is other than a Government company.
ICAI CA Inter Dec 2021 Question 3 (c) (i)
Referring to the provisions of the Negotiable Instruments Act, 1881 given the answer of the following:
(i) A promissory note was made without mentioning any time for payment. The holder added the words ‘on demand’ on the face of the instrument. Whether this may be treated as material alteration in the instrument?
(ii) Ankit draws a cheque for Rs. 2,000 and hands it over to Shreya by way of gift. Whether Shreya is a holder in due course?
ICAI CA Inter Dec 2021 Question 3 (d)
Explain the Mischief Rule/the rule in Heydon’s case for interpretation of statue. Also give four matters it considers in construing an Act.
ICAI CA Inter Dec 2021 Question 4 (a) (i)
Diya Limited, incorporated under the provisions of the Companies Act, 2013, has two subsidiaries – Jai Limited and Vijay Limited. All the three companies have prepared their financial statements for the year ended 31st March, 2021. Examining the provisions of the Companies Act, 2013, explain in what manner the subsidiaries – Jai Limited shall prepare their Balance Sheet and Statement of Profit & Loss?
ICAI CA Inter Dec 2021 Question 4 (a) (ii)
The Companies Act, 2013 has prescribed an additional duty on the Board of directors to include in the Board’s Report a ‘Directors’ Responsibility Statement’. Briefly explain any three matters to be furnished in the said statement.
ICAI CA Inter Dec 2021 Question 4 (b) (i)
What are the provisions of the Companies Act, 2013 relating to the appointment of ‘Debenture Trustee’ by a company? Whether the following can be appointed as ‘Debenture Trustee’?
(i) A shareholder of the company who has shares of Rs. 10,000.
(ii) A creditor whom the company owes Rs. 999 only.
(iii) A person who has given a guarantee for repayment of the amount of debentures issued by the company.
ICAI CA Inter Dec 2021 Question 4 (c)
A confusion, regarding the meaning of ‘financial year’ arose among the finance executive and accountant of a company. Both were having different arguments regarding the meaning of financial year & calendar year. What is the correct meaning of financial year under the provision of the General Clauses Act, 1897? How it is different from calendar year?
ICAI CA Inter Dec 2021 Question 4 (d)
In what way is the following terms considered as external aid in the interpretation of statutes:
(i) Historical Setting
(ii) Use of Foreign Decisions
ICAI CA Inter Dec 2021 Question 5 (a)
Examine that following offers of ABC Limited are in compliance with provisions of the Companies Act, 2013, related to private placement or should these offers be treated as public:
(i) ABC limited wants to raise funds for its upcoming project. It has issued private placement offer letter of 55 persons in their individual name to issue its equity shares. Out of these four are qualified institutional buyers.
(ii) If in case (i) before allotment under this offer letter company issued another private placement offer to another 155 persons in their individual name for issue of its debentures.
(iii) Being a public company can it issue securities in a private placement offers?
ICAI CA Inter Dec 2021 Question 5 (b)
Discuss the following situations in the light of ‘Deposit provisions ‘as contained in the Companies Act, 2013 and the Companies (acceptance of Deposits) Rules, 2014, as amended from time to time.
(i) Bhupendra, one of the Directors of Moon Technology Private Limited, a start-up company, requested his close friend paras to lend to the company ?20.00 Lacs in a single tranche by way of a convertible notes repayable within a period of six years from the date of its issue. Advise whether it is a deposit or not.
(ii) Shri ram Readymade Garments Limited wants to accept deposit of Rs. 50.00 lacs from its members for tenure, which is less than six months. Is there any possibility to do so?
(iii) The turnover of Y Ltd. is Rs. 400 crores as per last audited financial statement and net worth is Rs. 50 crores. Can Y Ltd. accept deposit from the public as per Section 73 of the Companies Act, 2013?
OR
New Pharma Ltd. issued a notice for holding its annual general meeting on 7th Sept. 2020. The notice was posted to the members on 16th August 2020. Some members of the company alleged that the company has not complied with the provision of the Companies Act, 2013, with regard to the period of notice and as such the meeting was invalid. Referring to the provision of the Companies Act, 2013, decide:
(i) Whether meeting has been validly called?
(ii) If there is a shortfall in the notice, state and explain by how many days does the notice fall short of the statutory requirements?
(iii) Whether the length of serving of notice be curtailed by Article of Association?
ICAI CA Inter Dec 2021 Question 5 (c)
Alpha Motor Ltd. agreed to sell a bike to Ashok under hire-purchase agreement on guarantee of Abhishek. The Terms were: hire-purchase price ?96,000 payable in 24 monthly Instalments of ?8,000 each. Ownership to be transferred on the payment of last Instalment. State whether Abhishek is discharged in each of the following alternative cases under the provisions of the Indian Contract Act, 1872:
(i) Ashok paid 12 instalments but failed to pay next two instalments. Alpha Motor Ltd. sued Abhishek paid these two instalments i.e. 13th and 14th. Abhishek then gave a notice to Alpha Motor Ltd. to revoke his guarantee for the remaining month.
(ii) If after 15th Month, Abhishek died due to COVID-19.
ICAI CA Inter Dec 2021 Question 5 (d)
Give the definition of the following as per the General Clauses Act, 1897:
(i) “Rule”
(ii) “Oath”
(iii) “Person”
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Suggested answers for ICAI CA Dec 21 exams Accounting subject were discussed in Youtube Live Sessions by Yash Sir. Watch the videos below:
ICAI CA Dec 21 Suggested Answers | Corporate Law and Other Laws - Day 3
ICAI CA Dec 21 Suggested Answers | Corporate Law and Other Laws - Day 4
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