Test Paper- 7

Chapters- LLP and Deposits

Marks- 25 marks
Time- 1 hr 15 mins
Note- All Questions are compulsory.

Question-1 (4 marks)
“LLP is an alternative corporate business form that gives the benefits of limited liability of
a company and the flexibility of a partnership”. Explain.

Question- 2 (5 marks)
NOP Limited, since its incorporation in 2002, is engaged in the production of premium quality
glass bottles. According to financial results of the company as on 31.3.2023 net worth of the
company was Rs.90 crore and turnover for the year 2022-23 was Rs. 510 crore. The company
proposed to accept the deposits as on 1st February, 2024, which would be due for repayment
on 30th September, 2028 from the public for expansion and redevelopment programs of
company.

Furthermore, the company has accepted a loan ofRs. 1.5 crore from Mr. P Kishore (Director)
and the loan was to be repaid after 24 months. Company in its books of account, records the
receipt as a loan under non-current liabilities. At the time of advancing loan, Mr. P Kishore
affirms in writing that such amount is not being given out of funds acquired by him by
borrowing or accepting loans or deposits from others and complete details of such loan
transaction is furnished in the boards' report.

On the basis of above facts answer the following questions:

(i) Whether company was eligible to accept deposit from public? What is the criteria for
acceptance of deposit and tenure for which deposit can be accepted? Whether the tenure
decided by company was in accordance with provisions of the Companies Act, 2013?
(ii) With reference to the loan advanced by Mr. P Kishore to company, state whether the
same is to be classified as a deposit or not?

Question- 3 (3 marks)
Enumerate the circumstances in which a Limited Liability Partnership may be wound up by the
Tribunal. Give your answer in respect of the provisions of the Limited Liability Partnership
Act, 2008.

Question- 4 (2 marks)
Wood Limited has received Rs. 4,00,000 as a non-interest bearing security deposit under a
contract of employment, from its employee Mr. Cotton. Mr. Cotton draws an annual salary of
Rs. 3,85,000.
Analyse under the provisions of the Companies Act, 2013, whether the said amount received
by Wood Limited will be considered as deposits or not.
Question- 5 (3 marks)
Mohit is a creditor of ABC LLP. He has a claim of Rs. 10,00,000 against the LLP. However, the
assets of the LLP are valued at only Rs. 7,00,000. Now, Mohit seeks to hold the partners of
the LLP personally accountable for the shortfall of Rs. 3,00,000. Under the provisions of the
Limited Liability Act, 2008, can Mohit demand for the deficit from the partners of ABC LLP?

Question- 6 (4 marks)
State true or false
i. XYZ Private Limited may accept the deposits from its members to the extent of ₹ 60.00
Lakh, if the aggregate of its paid-up capital, free reserves and security premium account
is ₹ 60.00 Lakh

ii. A Government Company, which is eligible to accept deposits under Section 76 of the
Companies Act, 2013 cannot accept deposits from public exceeding 25% of the aggregate
of its paid- up capital, free reserves and security premium account.

Question-7 (4 marks)
M/s Vardhman Steels LLP was incorporated on 01.09.2022. On 01.01.2023, one partner of a
partnership firm named M/s Vardhman Steels is registered with Indian Partnership Act, 1932
since 01.01.2000 requested ROC that as the name of LLP is nearly resembles with the name
of already registered partnership firm, the name of LLP should be changed. Explain whether
M/s Vardhman Steels LLP is liable to change its name under the provisions of Limited Liability
Act, 2008?

BEST OF LUCK!!