Corporate and Other Laws

TOTAL MARKS 50
Course: CA Intermediate

Paper: Corporate and Other Laws Marks: 50

Test: Dividend, Accounts of Cos, Cos Incorp outside India, FEMA & IOS Time Allowed : 1 Hr 30 Mins
SPC Receipt No:
Test ID: 52421

MCQ (10 Marks)

1) is the cardinal rule of construction that words, sentences and phrases of a statute should be
read in their ordinary, natural and grammatical meaning so that they may have effect in their widest
amplitude.
(a) Rule of Literal Construction
(b) Rule of Harmonious Construction
(c) Rule of Beneficial Construction
(d) Rule of Exceptional Construction

2) Radix Healthcare Ltd., a company registered in Thailand, although has no place of business established in
India, yet it is engaged in online business through remote delivery of healthcare services in India. Select the
incorrect statement from those given below as to the nature of the Radix Healthcare Ltd. in the light of the
applicable provisions of the Companies Act, 2013:
(a) Radix Healthcare Ltd. is not a foreign company as it has no place of business established in India.
(b) Radix Healthcare Ltd. is a foreign company being involved in business activity through
telemedicine.
(c) Radix Healthcare Ltd. is a foreign company for conducting business through electronic mode.
(d) Radix Healthcare Ltd. is a foreign company as it conducts business activity in India.

3) After Declaration of dividend it should be paid within

a) 14 days
b) 21 days
c) 30 days
d) 45 days

4) In how many days from the date of declaration of interim dividend, it shall be deposited in a separate
bank account
a) 5 days
b) 7 days
c) 15 days
d) 21 days

5) The Rule in Heydon’s case is also known as—

(a) Purposive construction
(b) Mischief Rule
(c) Golden Rule
(d) Exceptional Construction
6) The books of accounts of every company shall be maintained in order for :
a) 3 Years
b) 5 years
c) 8 years
d) 10 years

7) Which of the following amount is not credited to IEPF Account

a) Unpaid dividend account of company
b) Matured deposit with company
c) Profit on sale of asset
d) Matured debentures with companies.

8) Who can be appointed as an internal auditor?

a) Chartered Accountants
b) Cost accountants
c) Any other professional
d) All of the above

9) What is the contribution required by company to CSR

a) 3% of average profits of last three years
b) 2% of average profits of last Five years
c) 2% of average profits of last three years
d) 5% of average profits of last three years

10) Under the Liberalised Remittance Scheme, resident individuals are allowed to freely remit up to
a) USD 25000 per year
b) USD 250000 per year
c) USD 50000 per year
d) USD 500000 per year

THEORY (40 Marks) (8 x 5 Marks)

Q1) Mr. Z had resided in India during the financial year 2019-2020. He left India on 1St Aug, 2020 for
united states for pursuing higher studies for three years. What would be his residential status during
financial year 2020-2021 and during 2021-2022?

Q2) Explain what is Internal Aid, Marginal Note, proviso and Long Title.

Q3) The Board of Directors of Vishwakarma Electronics Limited consists of Mr. Ghanshyam (Director), Mr.
Hyder (Director) and Mr. Indersen (Managing Director). The company has also employed a full time
Secretary.
The Profit and Loss Account and Balance Sheet of the company were signed by Mr. Ghanshyam and Mr.
Hyder. Examine whether the authentication of financial statements of the company was in accordance
with the provisions of the Companies Act, 2013?
Q4) Vishal Limited has paid dividend consistently every year at the rate of 10% on its equity share capital
in the last 5 years (2017-2018 to 2021-2022). The company has incurred loss in the current financial year
(FY 2022-2023). It still wants to declare dividend for the FY 2022-2023. Whether the company can do so?
Explain.

Q5) Explain what is Ejusdem Generis?

Q6) If a company wants to come to india, what are the documents required to be given to Delhi ROC
within 30 days of coming to india?

Q7) XYZ Ltd has not conducted meeting to some reasons because of which they have not submitted
documents to ROC, is the company in tune with section 137 of Companies Act?

Q8) YZ Medical Instruments Limited is a manufacturing company & has proposed a dividend @ 10% for
the year 2018-19 out of the profits of current year. The company has earned a profit of Rs. 910 crores
during 2018-19. The company does not intend to transfer any amount to the general reserves out of the
profits. Is YZ Medical Instruments Limited allowed to do so? Comment.