AI I

....,.,. I
, •,u,u,,,
I)

less stated ot herw/se

,, '"'" "'" '' ,. Ir.~
f \( I ,, l;ICI , 2013 un
o," l'f I,,,, ,,, I/I
1
( jltlf/ JlJII

f' I• I I
:.~plain lh(.· c~ccnr . ,\H . R l ·n Foss v. Harbottle case la\V.
,. io,ls, ,r n, I ~ Mujonty ue l
1 ) , lo I ,~

(5 marks)
<'u•t t 1 ttc, u
u11 lhc f
olh_ ,,, ing :
(,) C
red it .
ll.lh ng ut the tiruc: or nccc :pLi ng Dc: .
(Ii) pos ,l by 3 com pan y •,s mn nda tor) ' ·
No cc,n1panv •. 1n, • ,·,h: OcP osit wiL hou t ent erin g into a con
• C.::,lO \rac t for dcp 051\
JnsUrance.
(iii )
Cre atio n of ~'Curity for "'-payment of Deposi
t is not mandatory for a\\ companies
wh ile accepting Deposit.

(ii·) Tru ste es for Depositors can be removed by

a sim ple majori\)'.
( •·) On ly rem edy for Depositors in case of def
aul t in repaymen\ of De pos 'it b
the com pan y is to file a sui t.

(5 ma r

"P.
 er Ind ia
$a l l ov
~
~,
-,~ ~
nw11Jt r I J, II d w• • ,,
f •1y
OJ> er11tm(& fitJ1CS
5 cen tre
appro ve d
1 1,0'}.2 U IJf f the c0rnpal1Y • "ted
" lhc I, Mu rln u on J I An,.rll 'lrd of d1r cctot11 o
·,vate) L11111
"' f 7S -n. .
Pt.ucfuue "c !to rn fit ne ss So lution s (P1'I
of l()'rn c:q uipmc ru for ·,c , ..e
d
{i
f ShoJ1W81ke r5 Lirn• .
a
na ge d by An ,14 . WI C or '-nil. the
co mp an y ma
CFO o 00 crore
• ·at year is ' 5 ·
an uaJ Jke r5 Ltn tile d fo, ,L_
n tur no ve r of Shonwa ..11: '-st finan c•
.
l'b c . he ld by An •t.a and
of f1t11CS S So Jlllio n, tD . .
en ur c sha reh old ing \ ,.-rivate) L1m1ted was
t\,\I
o Ot her directors.
•
In his repo
...._ • • • d"t or of the companY
rt to the sh are ho lde rs of Shn 1
~ c r s L1m1ted. tijc au
IJJ adc a d ~ udit Co mm itt ee
' " " " ~ e ~ of the A
an< .1
:1p cc1111 re
tcs
1':Jnar . on the -- -- ,q llating tha t t h
-...::___ SOiut io n WCJ-e cal
no 1-..a1w. :_ _ vin g the d ·
- - - -
ir befor e ap pro
7"L
• uc Bo ard , in the ~
saction
l'epon to the •~
~h ol de rs rem ark ed tha t the
pu rch ase tra n
was at ,
cllbJ s len gth . dit
d pa rty an d ap pr ov al of au
co . Pnce and S11DiJ, was no t a rel ate
lll ln itt ee an d th
c shareholders was not necessary.
Referring to pr o . .
anjes Act, 2013, examine the submissions of the Board.
VJs1ons of Comp
(5 marks)

the Companies Act, 2013 for

the issue of bonus shares by
Slate the provisions of
a listed company :

n a company declare bonus shares in lieu of dividend ?

Ca
nd ?
Is bonus shares same as stock divide

Contd.
 422
A11r.1111,1 ,,,, ;

""''• ,,, f'/tJ,ef Q fw 2 c,r Q, f\io. 1A

(a) Atn IT Al-!

h unct A
I IJ W company c.ill d ~ owners of cu•
_Jr.,cc ~ -, ...,..,~- ..
n Munnat 1,~
1
c t tie tt h CofTo c I tntc Pnwte I 1m11cd nd It f.., ,
cutrc M
10
1hey clo,mc ly fi rrned comJY.illY
I cxc'!!I_>!,ou fr .
•roun<I " rn !!;!yin• Rco.isuJ!lilllU'hW:i:tS Pru! St mn du!} on the
wu norhmg b
__jUIDI Inc lhc
:Y v.erc
~
uc o;!!Y s1,areholders of lhe oom_pany. lhc unnsacuon
, . Ut Ir II fer h) them from one name 10 themsehes rn anolhcr name
Rc,cmng to Ihe prov' ions
. of Companies Act, 2013, is .fhe,r claim ien:Jble
" 0 m<u"b\

(I,) I he Hoard of Cu 51omerlast Limited, nn unlisted public compan) h cxp\onng, ~

to increase ·115
paid-up
.
share capnal from t 125 crorc \0 t 150 crore. The CFO

Y suggested that ~nstead Qf offering shares to all existing sb:Jr<MldCJS

of the compan -
as a rights issue the compan} can issue further shares b) p,i,,ate placemen• 10 four

idenlilicd Qualified Instiuniooal Buyers and ,be top 250 e<isting s11areM\dC1"> b) reo;:i,ring

cash wi1ho111 offering shat•• 10 olher shareholders.

!"he companY ,;ectetarY of lhe company objects to the manner of raising further capi1al.

· h .«.en· ngs to the select shareholders a> "ell as receh•ing cash.

I.C. t e 011•
Referring the provisions of Companies Act. 2013 decide.
10
(3 mar

CL
 422

llurs h fhtti
I !. n rn-0 1110Icr d1rrc rnI '1 1 'll q I•
l1is lri~·••d t 1,t \I._ lit I Id I I omc: tund, hum
--=:..:•for l CCII lltl flllljl<ISC 1 'IC t:ln le hurTOWCi
10 E:th •
1uan 10 1hc comp , r.,r \\'''~1,
t.:
1Yill~ ,ulc c,1 prl! .en 1 t hu3 , he fllun
le 1
111 1
u f• • ,;_. CQ1l11 I nuua;hcd yuu,
l'Dchs rng ( "um ll>I Ii\ " nc~I 11 II h 11,,!l UPI
!'mil.) ~ccrct 1') • 'l'.llcs1 such
loun \\ill 10,,, ,r 11111111,,11 ~ ,c:,c
I
nor l:Onst11111c Dc1w•ul ,\Jvisc I there t ,,11:, f
th , C In, h 1 110v1s111n1 o
t.: onir,,in,cs , \c1, 211 I '.l W11h rclcri; ,,~ c l\1 t ic I

VI) ,\fa, . • 0 m,,rks)

CTUhccn1 I Id h ~
C\ ~ • • ns hk-J ,.ufous c·lolltts
. . .. 10 various
~ms '" the- C, ' . "•th Rcgmrur ot Cornpunics tluc
cJ~, < mp,tn) • \\'1th rcfcn.:ncc 10 {i · ch services/
rm.-., f'roccs:-, t ~filing ol torms. St.nll! c,r ..-. 1u ·
- or refund f r,.,. . -
~ 0 '"'" IS no1
· nr,plic11blc.
(e) St1Jnnj C (.3 murlc.'il
0
g 0 111Inoditic-s L1d
of h
l C Comp:,n )
· • ga\e no1i . • u··w.u (not a member
cc seeking infom,ation frOn, JJ
.... ,y \\hom IhC co r ~ lO be \.,. •·o••r:,
,~,,
knov, ledge f . mpany has n:asonuble cnuse to he ,cv.,;
0 the identity f . · h companY•
It is b O a sagnifican1 beneficial o,vncr (SBO) ol l e
o sen ed that infc . . . . . • ~ Genera\
M onna11on ga,cn by UjJY.al 1s not sullstaclory. You ore
anager (Secretarial) 0 f r. further
. lhc Company. The CEO of the Company a::;ks you ,or
act1on to be take b
n Y lhe company on this. if any. Please ad..-isc.
(3 ,narks)

OR (Aller11ate q1Jestio11 to Q. No. 2)

The legislative authority for enacting corporate Jaws and securities \aws in \ndia is
distinctly different from the authority for enactment of corporate \av.s and securities
la\, s in USA. Explain.
•
(3 rnarks)

Contd .....

l"Wililiil
•
IIIZZall

Q. Nn. S o
422 ,ti'~
'
r ri ..,.
~• n o, . j, t
ff ' ,I
,,.,,,.,,,,,, " '' ~ 1
~ •.ti11 pnny hn ti
11<1 tn:c mnnufactun
n g d "as,o n
I 1111 11"......' "
( ) /,C fl! ""c"',c~fe f} r\'l+~• fl
,,t1
(I)
,-clc 0 •' " 9 ol'I
(tl) N ft,tOfC.
.; .,orcr [) I' l,;I is o i, •n •
(;J cc tfl C 0 . iiO p ,.. "' •
(1 ,J jf 'l( ll, ,. ..
(,0 lf o " ,111?
'f'.II~ (R u p ee s in cr
o re )
c: ,p l·1nl :
£ qu1I) ,h:irc
,,jtlJ I •. 300
preference s h re c: it
D
120
Gc1JCrtl I R'~: ,e f\ C :
... .11on R,:."it.
R c, :1l _ . 'n r: : 500
p ,v O t u n d L
o ss A lc (C R 200
.)
Long term loan : 300
Short term loan : 480
Gross re\'enue in 620
last FY ·
lnH~sunenr in Cycl 2010
e division :
TumoH·r of Cycle 40
division
The Board of direc 450
tors o f the compa
ny have decided
follov.ing in their m by unanimous re
eeting held ,on 31
st May. 2023 :
so \u ti o n 1
(1) To o ~ n a further lo
ng term loan o f Ru
pees 300 crore fro
(ii) To in\'est in trust se m financ,al institu
curities the compe ti
nsation received a
of Cycle Division. s a result o f dive
stn
Referring to the pro
visions o f Compa
is suffici t r. nies Act, 2013, de
cide if the board
en ,or the above reso\~
prop osals.

l4 m
 42 2
12

I lie foll<• 1 , ,,o1 •

111
' 8 •tifonn nttofl '' GI

•s .> I 11111 Ii:J

1'-Jl'lh I im,1c.'d '•!ltru 9
\l' Urui:.t~ 19
ntcr (Priv111c)
I Id, Suh-,1di,U) of -I
- -ui- ~:-: -:L~ l::..:i.rt~h.!_l~tm~,r.~-~~--~::-; • :,n
o1:n•"'
--:---- -.... l.--; --:
(/) \\'hich comp. · :d In
in,cs ur.: rt"lum c:on!llmne Nomin uuo · n anJ ~c1nu
Cnmmirtcc (NRC) 7
(if)
Can the Charim an ol tJiC: cornp; iny also ctuur the NRC
'/ J .,,, Ji~Gt ors
(tit)
\\'Jui is the minimum numt>cr of c,u.-cu1i\ic directo rs w,d •,n dcpct1 C

,,.., on NRc ?
\\ hm ,s •he quoru m w,,d number of meeti ngs of NRC .
. \ veur- ,
nnanc 10 ,/
m o (4 n,or/c .\)

1/ (a) (1) PA.R T-10

Write a note on UDIN and eCSm.
(ii) H'nJ..t • I firrtl•
1 - •
5'' ,ghr the m,k involv ed in lhe functi oning profes s1ona
of 8 mega ,1.s)
(S ma ~
CS Mtlllish. a Company Secretary in practi ce is an exper t in d servi ce
Good s an .
~
'ax. On be'mg appro ached by a repweJ Uni\.eisity ot Mwnbai. Manis
· h t k up teach ing
oo
assignment of indirect laws at University from 11 A.M. to 3 P.M. on every
tax
Tuesday and 2 P.M: to 5 P."-f. on every J,riday. Remuneration was
contracted to
be fixed for the assignment. The University was recognised by the
Council of lCS\
for imparting teaching. Has Manish comm itted professional misc
onduct in tenn s of
provisions of the Company Secretaries Act, I 980 ?
-- -
(5 mar ks)
-- -- -o
tJICL
 • Ori ll
le;,') I
(it)
~,.,

\_S ,uurks)

of a well k - ,o \is«U ca'1'l''"''"s1

0
(d) su
The CFO - nown pu~1,c company l""" •"'on~ \Ol' •
ggestcd to thc. Board of die-<tors LO cons1i1u1c • Risk Matla~otncn\ C "'"'''\ee
. ,. ~,\\,

~
0 0
only the CFO and Generul ~1,naser (IIR) ..!lli ils..-
"'""'t,crs.
any Secretary or 1h• company. however insis\cd ,ha\ he shou\d " ' "
Thc Comp ' \
m the Risk MU!lllgen cnt ConunillCC but should a\sO be made \"e c.\\a'tt"I'~
be included · 1 - ·
m1ttce as he 1s we versed m corporate \av.-s.
of the com . . 11 .
Referring to the provisions of companies Act. 2013 and the Re\e"ant Ru\cs, e1'-ai

the proposal.
 ,. 422
IJ

A..-..,rr<r,,_
'' fo, lfic lqf ◄
\' 000 and surcharges f 1.20.000
"11oun1 'Q.2
J ft bo or ~--
? 32.00.000
ilrd of d -~
th, ''Ccror ~ losses of pre,ious }Cllrs ~ 2.li0,000
OU1er , Con ltd
~ 10n e~CCur of o managing director. n \\hole 111ne d1rc\!lor ond
ou Ure rcqu l\.'c direr.~
''Cd I
(J ca)
-->urs
lll1d rite
maximum ltlJl CUI le the net profit for computing mnnng.:n.,I rcmuncm11on
Stare )'Our u
llagena1 r •
Clnuncrot1on ptJ)nblc 10 the ahoH: said the Jin:1:tors
O
mprlortJ

(///j •'Yori l'rosnd b (-t morh)

o lni11ed rwo (2'
20 I ti lt d ' D1rcc1or fdcntifo:ntion Number (011':s) b, mbr ikc in
11 2019 .. .. • '
c uscu his scco d l}JN
0 I 11 n to become dit1:clOT \n wm flT'" \\c \m,,\<!ll
Ill •ree publ11,; limited
compnnld l.ater. on rcahsntion. he npp\,cu ,o Rew \rnf uf
Compnnics for denClt\allon
, . of lus
. lirst DIN. Jne Registrar rejected \he uri"''~~\\\On

1 xornir1111g rclc\ ant lcgul pro, isions, discu!)s.

-
(4 marks)

( h. ) l"'1Z) bones, director of Global Tro,lCls Limited. nn wilisted public company was removed

from rhe Office of .D.irec.W u/s 169 of Companies Act, 20\3 after fo\\owing due

of Notice nnd the principles of Natural Justice.

The boord of duoo1ors sought your opuuon on filling up the ''8Cm\CY caused by remo

d rect r Ad,1se
 r,

422 ,111c l>'\\5 Ill II Sc:m1n11r One person from the nudlCnc.t:

..
~.
...,. "
J. (al l ,,u 1,C
II '-1"''
• J.CI
1
1
1 11

illlf ,,p1tllll
corr"
• 1111·"
11 • 111
n, II O\o, Ir, ..
I ,r'I
o
t:111lx,
"111tll!nl
r 11'1 '1 \:llnlf',lny '1
, •Ul,l hl >1 I ◄111 ltC cmlier
"'"'r,.., I1 1

, nsc O f fl lCd gc
,,11,. • '
(' '" 1111
fi,•'11 \ •
1...: a "' I '" u cum"nn)
,, 1 • 0f

~
11
'
(If)
CIll, 11 rh•c:c•'""' ,-,;tor
111\ \
tt\'lll ~r, ices nf n Dcpositot)' in i;

J •s 1111
1111) 11,1\\ i•~ "•S
.., .... mark.-.)
,hutc., .., (l-t- -
ll
• ., li:,ICU comn· .
• (111! ucroi.5 1hc c,adcncc of undcr-
d 'tor o 1 ..
' A h)
,.any c,1 · ~im!
A nc \\l> nppc1in1~-J~ ni ill!! of fUJld.-. through I.al< tie.'"ens ~ &auduk:nt Sl~---•-·.a,
imo1cing ofe,-porb. n,uod ' : . 11 L"Sl) 1-, • the jUflher Course of action by \he
n,11 110 · explain
of funds amount.mg 10 ten d ?
is f,-nU •
.1ud11or. .Also c:,plain w h at lS marks)
;JJtiL-S Act. exp\ain "'--hen a Pn..-a\c
..,,.<&? W11hn:ren:nr:c tn the PTO\is ions of Singapol"! comP What is the due da1~ 01 ho\dmg
Compan) need not hold annual general meeting ? ')
an} ·
the annual gencraJ meeting of lis1ed public crifT1P
(3-,-2 S marks)

PART-JI .
Independent director of \ \appy Tra,•e\s
(o) Rakesh Agan..-al is a Non-l~xc.-cutiv~ &. Non-_ _ . f .
/ hare capita1 o the compan) 1s ~ \ '>()
/.,imired. an y.nlisted company. The paid-LIQ.. s -
crore. Th e company I1as a\ a,.1cd a menn_, loan of f 65 crore.

The Board of directors. in theh- me~passed a resolution to grant a housing \oan

of rupees one crore to Rakesh for purchase of an apartment in Navi l\i\umbai at
, concessional interesr rate. The company has implemented a housing loan for its I X , ~
employees at concessional interest rates. The Secretarial Auditor has objected to the
loan granted to Rakesh in his Secretarial Audit report.

ls the claim of Secretarial Auditor correct ?

\\Iii/ _\ our ansn er differ if the company is a private limited compan) ?

(5 mar

Contd
 422
I (I

• I ,t.,d c,;Ullll'lrnl)'
I llllW! I
l'1 11,. ,,,. f\lCCC•ll8 ''1
\r1111ai1J c•oic, ,I ucncml
11-.-,, I'• o.:ml ~ 1.:.~111J 1,,1/"'"" f
" c 11.111111 u, t s ,. lu.:u,111 '" cr,11 :111 - c.l{lr I fl1dlnnl}'
J 11 I I I ""'' th
''' ' " ' • •• • '" m tune I •
Ill<• t lt!J,J ••, 1 11,,.,,.I ~ /,-c fflll• "'" lldu11 .
,111llllb 1•1 1 I IU!lh "'"'' '
1
111\ ... ,11gl11 ) "'" H1h lt' C ,,n urfll u · rci.:lut (Ill
/11,• • 11 """ "' ,11 rlic- •••n•r; • ,ICJ"''t1dt.:rll I
/ 11~, 0 ' 111\ ,I ' "" l ' \IJ 1 /111111 ii 111
' 1:lr ,' 1111111wr~1111 hu 11 ~ u:. 111 1 111

,It.- IJ,, int ,,f ""' , ,,,111., 1111 1, 1r 1/11.· P\·nod ol _•.S<'\
__en_ .> L•,,rs.

( '1 llltlf /.. )

>N
' ~ '\"rJ, f)
' f llt,·rnut,•
l/"'•1//t>r, '#II .I).

(i)
. •d u.-. ib Comrr,:u,cc.. OJTiccr .
nK· l ,'hi,·f l i na.11<'i.,1 <>mc,•r 1l/'"' li~k.'d ,;,ttn/l.Jlt)' his: 11ppo111lc.;
Q '11111 k''111

(➔ mark\)
(11)
F,-,1/ou ing p,inic11J.1r:,. ,lf'I.: t.'\ trai.:tc:d ffl,m the: JinJJlciaJ !-Wlemc:ftf.S. of ",ur:.ll Golc.J and
Diamond._, limit,·d t,,r th1.· ) ~ar cmcJ,:J ,1 ~, Murch. 2023

(Unj1 in Rupees)
&lnri,·., anJ pc•rquisites paid to tnn.naging dm.-cmr f 1.50.0
_ 00 J.rtd \.\.hoJe rime director

r l.20.000. PrcH l!iion for bonus r 1.00.000 i.ll1d gratuity f 1.00,000 (included the

bonu.., r 10.000 and grJtuit_, r 12.000 for the abo,·e dircctois)

Pnn i:.ion for dllubttu/ debts f 60.000
Profit on s..1/e of forfc.•i1£.1d shares ( /0.000

Shon tem1 capital gains ( 2.60.000

.
Conrn·bution to approved charitable LTUst f 1.00.000.
•

Contd. ...•....
 (II')

(J mlllks)

As ii C,
Hupa,,
~ • .JCfcd h\J } Seer.'',''), ••th•,
dlls· · matters c·an be
client "hethcr the following
fr
·rr.
~
J II SC )Ollr
(a) I~ ol.: Hin U fl'S J · -~•"I hballalS •
· sue nl h O IJl1un passed 1hrough__pt~ _.
:.. ore:, • ..-
(/,) Sale of \\ 1th dil h:r~nti11I , otins righlS
llu\'-h• lhc v,I iofo ol' 1he unJ,nuhing of ,he companl
(c)
• .1ck or 0 " It shutc!i h> 1hc Cornprin). p morks)
531
1') n1c Board of 'rfll\.'Clo"" of Zl-D I 1J. (I isied Comp"11)') is acUvely considering a prol"'
lo~y OOck i ..
-.._;_;.:.:..:,:~l~~sh~arcs. NoH.-cn t,n.< """'"' > joined the Boord as an Add111onal
.. o,n:cu,r.
·
• · panncr of a ,,nn
You Jre dic senior r. of ComP311y s.,-crewries and t,lavecn haS sou.,.,
•"I

) our 'icws. if dK'n: is 1U1) n,qnireinent for filing Declaration of Solvenc)' by lhe compa!IY
irh M) regululol)' aurhoril) and paniculars thereof. Also. what would be the tim
11
gap be111een II\O buy-back<. Ad,ise Naveen in the light of the provisions of ll

Con1panie.s Act, 20 I3. (3 m

 42,2
(h )
Pr.tpti Hotel I
2022 h .td
\\ ~ lu Cir... 9
~ to the nn uldc,,cnd"""'' d,rcc1,,r '
•-p, 1ri1 SLL..n11i;i lh 'n '
Susmn£1 ·1,;_-
kno\\lC(J
s~ }t d .,.,
.._ l,q :
L_ ~ o f\ ate Presa den l (t;on1mcr~1t1IJ ot ,h
nt r
oom reru f •r ho1 I , I Jun
e n1 O ot ) for ,hrcc 1ron1 I \ Ju• 10 fl
0 ' 2 J, 1)
COmpany
, 'TI.. _ • ~ ~ Ile r v. it h th
• 'IC Hotel
-- .; !, da) nnd ,1tus tuuJ entered into ti uun c\ lll ll
dun ~ JO()IO f d\C gc oc nl l puhhC
ng that time. A d . rt' fl\ Imm other
members 0
a5 an · • ' 1 se the Vi c u, he oppointcd
·d
independent di cerresi ent (Commercial), ii Su~•"'tn
l'\!ctor o f the con1pa 2022
n} lrom b t Junu
tU).
(t j
With rcsf)(:ct lo h- V .
oting. cxrlnm the fo .
(ll) llo\\1ng :
f:.~oting
(h } Agen<:.')'

(<') C ut -o ff da1~

(d) C ) bc r sc cu ri t)

~1Cf"CW) Limited i!S in m ar ks ) t4

corporated in USA and
ha,ing its registered om
ce in Los Angeles.
Board o f dircctor:s o
f ~1crcUQ Limited take
n a decision to merge
Mercury Limited
\\'ith ~lnrs Limited.
a compan) incorporat
ed in India having it
s registered office in
Ne\\ Delhi . Referring to the prov
isions of lhe Companies
Act 2013. advise lhe
o f din.~tor~ o f ~1crcu lloard
ry Limited fo r ~1erge
r.

(4 marks)