Corporate and Other Laws (Group I) Model Test Paper - 2 (Questions) | Model Test Papers for CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 2 
INTERMEDIATE COURSE: GROUP – I  
PAPER – 2: CORPORATE AND OTHER LAWS 
Time Allowed – 3 Hours Maximum Marks – 100 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises Case Scenario based Multiple Choice Questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case Scenario based MCQs (30 Marks) 
Part I is compulsory 
Case Scenario 1 
ACC Private Limited was incorporated in July 2001. It is registered with an 
authorised share capital of ` 20 crore divided into 2 crore equity shares of ` 10/- 
each. The paid-up share capital of the company is ` 10 crore divided into 1 crore 
equity shares of ` 10/- each.  
The Board of Directors of the company in their meeting held on 11
th
 August, 2023 
declared interim dividend. The Annual General Meeting of the company was held 
on 1
st
 September, 2023. The company had incurred losses in the previous financial 
year as well as in the current financial year upto the period ended June 30, 2023. 
In the previous five financial years, the company had declared the dividend as 
under:  
Financial Year 
Ended 
Dividend declared per 
share (`) 
Dividend declared 
rate (%) 
March 31, 2023 Nil Nil 
March 31, 2022 1.00 10% 
March 31, 2021 1.10 11% 
March 31, 2020 1.30 13% 
March 31, 2019 1.20 12% 
The company has deposited the amount of dividend declared in a separate account 
with ABC Bank on August 14, 2023. Out of the total dividend declared, ` 60,000 
payable to few equity shareholders remains unclaimed even after the expiry of 
statutory period within which dividend was required to be paid and had been 
transferred to a separate bank account Unpaid Dividend Account on 20
th
 
September 2023. The company prepares a statement containing the names of 
shareholders, their last known address and the unpaid dividend amount to such 
each shareholder and place on its website. 
Meanwhile, the company obtained a term loan of ` 15 crore from Laxmi Bank 
Limited on August 20, 2023, securing it with a charge on the company's assets, 
including its own buildings (in India and Germany) and intangible assets (trademark 
right over the company’s logo). According to the Companies Act, 2013, the 
company was required to register this charge with the Registrar within a specified 
108
Page 2


MODEL TEST PAPER 2 
INTERMEDIATE COURSE: GROUP – I  
PAPER – 2: CORPORATE AND OTHER LAWS 
Time Allowed – 3 Hours Maximum Marks – 100 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises Case Scenario based Multiple Choice Questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case Scenario based MCQs (30 Marks) 
Part I is compulsory 
Case Scenario 1 
ACC Private Limited was incorporated in July 2001. It is registered with an 
authorised share capital of ` 20 crore divided into 2 crore equity shares of ` 10/- 
each. The paid-up share capital of the company is ` 10 crore divided into 1 crore 
equity shares of ` 10/- each.  
The Board of Directors of the company in their meeting held on 11
th
 August, 2023 
declared interim dividend. The Annual General Meeting of the company was held 
on 1
st
 September, 2023. The company had incurred losses in the previous financial 
year as well as in the current financial year upto the period ended June 30, 2023. 
In the previous five financial years, the company had declared the dividend as 
under:  
Financial Year 
Ended 
Dividend declared per 
share (`) 
Dividend declared 
rate (%) 
March 31, 2023 Nil Nil 
March 31, 2022 1.00 10% 
March 31, 2021 1.10 11% 
March 31, 2020 1.30 13% 
March 31, 2019 1.20 12% 
The company has deposited the amount of dividend declared in a separate account 
with ABC Bank on August 14, 2023. Out of the total dividend declared, ` 60,000 
payable to few equity shareholders remains unclaimed even after the expiry of 
statutory period within which dividend was required to be paid and had been 
transferred to a separate bank account Unpaid Dividend Account on 20
th
 
September 2023. The company prepares a statement containing the names of 
shareholders, their last known address and the unpaid dividend amount to such 
each shareholder and place on its website. 
Meanwhile, the company obtained a term loan of ` 15 crore from Laxmi Bank 
Limited on August 20, 2023, securing it with a charge on the company's assets, 
including its own buildings (in India and Germany) and intangible assets (trademark 
right over the company’s logo). According to the Companies Act, 2013, the 
company was required to register this charge with the Registrar within a specified 
108
timeframe. However, the company failed to complete the registration process within 
the prescribed timeline. 
The Board of Directors has requested their Company Secretary to confirm them 
whether they are required to incur expenditure towards Corporate Social 
Responsibility during the financial year 2023-2024 and is required to constitute 
CSR committee.  
The financial particulars in respect of immediately preceding financial year are as 
under:  
S. No. Particulars Amount (` in crore) 
1 Net worth 100 
2 Turnover 1010 
3 Net Profit 4.9 
4 Borrowings 60 
On the basis of above facts and by applying applicable provisions of the Companies 
Act, 2013 and the applicable Rules therein, choose the correct answer (one out of 
four) of the following Multiple Choice Questions (MCQs 1-5) given herein under: -  
1. The company can create charge in favour of the lender on the assets which
are:
(a) Tangible Assets and situated in India only
(b) Intangible Assets and situated in India only
(c) Assets that are tangible or otherwise and situated in India or Germany
(d) Assets that are tangible or otherwise and situated in India only
2. The maximum rate at which interim dividend can be declared by the Board
during the current financial year is as under: -
(a) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding two financial years, i.e. 5%. 
(b) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding three financial years, i.e. 7%. 
(c) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding four financial years, i.e. 8.5%. 
(d) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding five financial years, i.e. 9.2%. 
3. In respect of dividend declared which of the Statement is not correct?
(a) The company has transferred the dividend amount to separate bank
account within 5 days from the date of declaration of dividend.
109
Page 3


MODEL TEST PAPER 2 
INTERMEDIATE COURSE: GROUP – I  
PAPER – 2: CORPORATE AND OTHER LAWS 
Time Allowed – 3 Hours Maximum Marks – 100 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises Case Scenario based Multiple Choice Questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case Scenario based MCQs (30 Marks) 
Part I is compulsory 
Case Scenario 1 
ACC Private Limited was incorporated in July 2001. It is registered with an 
authorised share capital of ` 20 crore divided into 2 crore equity shares of ` 10/- 
each. The paid-up share capital of the company is ` 10 crore divided into 1 crore 
equity shares of ` 10/- each.  
The Board of Directors of the company in their meeting held on 11
th
 August, 2023 
declared interim dividend. The Annual General Meeting of the company was held 
on 1
st
 September, 2023. The company had incurred losses in the previous financial 
year as well as in the current financial year upto the period ended June 30, 2023. 
In the previous five financial years, the company had declared the dividend as 
under:  
Financial Year 
Ended 
Dividend declared per 
share (`) 
Dividend declared 
rate (%) 
March 31, 2023 Nil Nil 
March 31, 2022 1.00 10% 
March 31, 2021 1.10 11% 
March 31, 2020 1.30 13% 
March 31, 2019 1.20 12% 
The company has deposited the amount of dividend declared in a separate account 
with ABC Bank on August 14, 2023. Out of the total dividend declared, ` 60,000 
payable to few equity shareholders remains unclaimed even after the expiry of 
statutory period within which dividend was required to be paid and had been 
transferred to a separate bank account Unpaid Dividend Account on 20
th
 
September 2023. The company prepares a statement containing the names of 
shareholders, their last known address and the unpaid dividend amount to such 
each shareholder and place on its website. 
Meanwhile, the company obtained a term loan of ` 15 crore from Laxmi Bank 
Limited on August 20, 2023, securing it with a charge on the company's assets, 
including its own buildings (in India and Germany) and intangible assets (trademark 
right over the company’s logo). According to the Companies Act, 2013, the 
company was required to register this charge with the Registrar within a specified 
108
timeframe. However, the company failed to complete the registration process within 
the prescribed timeline. 
The Board of Directors has requested their Company Secretary to confirm them 
whether they are required to incur expenditure towards Corporate Social 
Responsibility during the financial year 2023-2024 and is required to constitute 
CSR committee.  
The financial particulars in respect of immediately preceding financial year are as 
under:  
S. No. Particulars Amount (` in crore) 
1 Net worth 100 
2 Turnover 1010 
3 Net Profit 4.9 
4 Borrowings 60 
On the basis of above facts and by applying applicable provisions of the Companies 
Act, 2013 and the applicable Rules therein, choose the correct answer (one out of 
four) of the following Multiple Choice Questions (MCQs 1-5) given herein under: -  
1. The company can create charge in favour of the lender on the assets which
are:
(a) Tangible Assets and situated in India only
(b) Intangible Assets and situated in India only
(c) Assets that are tangible or otherwise and situated in India or Germany
(d) Assets that are tangible or otherwise and situated in India only
2. The maximum rate at which interim dividend can be declared by the Board
during the current financial year is as under: -
(a) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding two financial years, i.e. 5%. 
(b) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding three financial years, i.e. 7%. 
(c) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding four financial years, i.e. 8.5%. 
(d) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding five financial years, i.e. 9.2%. 
3. In respect of dividend declared which of the Statement is not correct?
(a) The company has transferred the dividend amount to separate bank
account within 5 days from the date of declaration of dividend.
109
(b) The company is required to pay dividend within 30 days from the date of
declaration of dividend.
(c) The company is required to transfer the Unpaid dividend to a separate
bank account within 10 days from the date of expiry of statutory period
from the date of declaration of dividend.
(d) The company is required to prepare a statement containing the names
of shareholders, their last known address and the unpaid dividend
amount to such each shareholder and place on its website within 90 days
from the date of transferring the amount to Unpaid Dividend Account.
4. Choose the correct option in terms that whether the provisions of Corporate
Social Responsibility are applicable to ACC Private Limited.
(a) The provisions of Corporate Social Responsibility are not applicable to
ACC Private Limited as it is a private limited company.
(b) Yes, as ACC Private Limited is having turnover of more than ` 1000
crore.
(c) Yes, as ACC Private Limited is having net profit of more than ` 2.5 crore
in the immediately preceding financial year.
(d) Yes, as ACC Private Limited is having net worth of more than ` 50 crore
in the immediately preceding financial year.
5. The notice for the Annual General Meeting should be served by:
(a) 6
th
 August 2023
(b) 7
th
 August 2023
(c) 8
th
 August 2023
(d) 10
th
 August 2023
Case Scenario 2 
Sudeep and Ankit are very fast friend since long. They decided to run a service unit 
which will provide “Financial and Investment Consultancy Services”. For this 
purpose they formed a limited liability partnership under the name M/s Etharkkum 
Advisors LLP on 17
th
 April 2020. For this purpose, they prepared a Limited Liability 
Partnership Deed of which one of the clauses provides that a new partner may be 
admitted in the LLP with capital contribution which may be in kind or cash. Further 
new partner is also required to deposit the agreed amount of capital contribution 
within six months from the date of his admission.  
After some time, office of the firm was destroyed due to an earthquake and the LLP 
was in urgent need of an office premises and some funds for some renovation work. 
It is also informed that M/s Etharkkum Advisors LLP approached Manoj on 
1
st
 January 2023 to join the firm as third partner. Manoj was out of India for the 
period from 1
st
 September 2021 to 23
rd
 December 2022.  He agreed to join the LLP 
and also agreed to contribute his office premises at Sanjay Place, Palwal and funds 
of ` 5,00,000 as Capital Contribution in the firm. Manoj joined the firm on 25
th
 
January 2023 as limited liability partner. The above said office premises was 
purchased by Manoj five years ago for ` 25,00,000 but the fair market value of this 
110
Page 4


MODEL TEST PAPER 2 
INTERMEDIATE COURSE: GROUP – I  
PAPER – 2: CORPORATE AND OTHER LAWS 
Time Allowed – 3 Hours Maximum Marks – 100 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises Case Scenario based Multiple Choice Questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case Scenario based MCQs (30 Marks) 
Part I is compulsory 
Case Scenario 1 
ACC Private Limited was incorporated in July 2001. It is registered with an 
authorised share capital of ` 20 crore divided into 2 crore equity shares of ` 10/- 
each. The paid-up share capital of the company is ` 10 crore divided into 1 crore 
equity shares of ` 10/- each.  
The Board of Directors of the company in their meeting held on 11
th
 August, 2023 
declared interim dividend. The Annual General Meeting of the company was held 
on 1
st
 September, 2023. The company had incurred losses in the previous financial 
year as well as in the current financial year upto the period ended June 30, 2023. 
In the previous five financial years, the company had declared the dividend as 
under:  
Financial Year 
Ended 
Dividend declared per 
share (`) 
Dividend declared 
rate (%) 
March 31, 2023 Nil Nil 
March 31, 2022 1.00 10% 
March 31, 2021 1.10 11% 
March 31, 2020 1.30 13% 
March 31, 2019 1.20 12% 
The company has deposited the amount of dividend declared in a separate account 
with ABC Bank on August 14, 2023. Out of the total dividend declared, ` 60,000 
payable to few equity shareholders remains unclaimed even after the expiry of 
statutory period within which dividend was required to be paid and had been 
transferred to a separate bank account Unpaid Dividend Account on 20
th
 
September 2023. The company prepares a statement containing the names of 
shareholders, their last known address and the unpaid dividend amount to such 
each shareholder and place on its website. 
Meanwhile, the company obtained a term loan of ` 15 crore from Laxmi Bank 
Limited on August 20, 2023, securing it with a charge on the company's assets, 
including its own buildings (in India and Germany) and intangible assets (trademark 
right over the company’s logo). According to the Companies Act, 2013, the 
company was required to register this charge with the Registrar within a specified 
108
timeframe. However, the company failed to complete the registration process within 
the prescribed timeline. 
The Board of Directors has requested their Company Secretary to confirm them 
whether they are required to incur expenditure towards Corporate Social 
Responsibility during the financial year 2023-2024 and is required to constitute 
CSR committee.  
The financial particulars in respect of immediately preceding financial year are as 
under:  
S. No. Particulars Amount (` in crore) 
1 Net worth 100 
2 Turnover 1010 
3 Net Profit 4.9 
4 Borrowings 60 
On the basis of above facts and by applying applicable provisions of the Companies 
Act, 2013 and the applicable Rules therein, choose the correct answer (one out of 
four) of the following Multiple Choice Questions (MCQs 1-5) given herein under: -  
1. The company can create charge in favour of the lender on the assets which
are:
(a) Tangible Assets and situated in India only
(b) Intangible Assets and situated in India only
(c) Assets that are tangible or otherwise and situated in India or Germany
(d) Assets that are tangible or otherwise and situated in India only
2. The maximum rate at which interim dividend can be declared by the Board
during the current financial year is as under: -
(a) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding two financial years, i.e. 5%. 
(b) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding three financial years, i.e. 7%. 
(c) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding four financial years, i.e. 8.5%. 
(d) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding five financial years, i.e. 9.2%. 
3. In respect of dividend declared which of the Statement is not correct?
(a) The company has transferred the dividend amount to separate bank
account within 5 days from the date of declaration of dividend.
109
(b) The company is required to pay dividend within 30 days from the date of
declaration of dividend.
(c) The company is required to transfer the Unpaid dividend to a separate
bank account within 10 days from the date of expiry of statutory period
from the date of declaration of dividend.
(d) The company is required to prepare a statement containing the names
of shareholders, their last known address and the unpaid dividend
amount to such each shareholder and place on its website within 90 days
from the date of transferring the amount to Unpaid Dividend Account.
4. Choose the correct option in terms that whether the provisions of Corporate
Social Responsibility are applicable to ACC Private Limited.
(a) The provisions of Corporate Social Responsibility are not applicable to
ACC Private Limited as it is a private limited company.
(b) Yes, as ACC Private Limited is having turnover of more than ` 1000
crore.
(c) Yes, as ACC Private Limited is having net profit of more than ` 2.5 crore
in the immediately preceding financial year.
(d) Yes, as ACC Private Limited is having net worth of more than ` 50 crore
in the immediately preceding financial year.
5. The notice for the Annual General Meeting should be served by:
(a) 6
th
 August 2023
(b) 7
th
 August 2023
(c) 8
th
 August 2023
(d) 10
th
 August 2023
Case Scenario 2 
Sudeep and Ankit are very fast friend since long. They decided to run a service unit 
which will provide “Financial and Investment Consultancy Services”. For this 
purpose they formed a limited liability partnership under the name M/s Etharkkum 
Advisors LLP on 17
th
 April 2020. For this purpose, they prepared a Limited Liability 
Partnership Deed of which one of the clauses provides that a new partner may be 
admitted in the LLP with capital contribution which may be in kind or cash. Further 
new partner is also required to deposit the agreed amount of capital contribution 
within six months from the date of his admission.  
After some time, office of the firm was destroyed due to an earthquake and the LLP 
was in urgent need of an office premises and some funds for some renovation work. 
It is also informed that M/s Etharkkum Advisors LLP approached Manoj on 
1
st
 January 2023 to join the firm as third partner. Manoj was out of India for the 
period from 1
st
 September 2021 to 23
rd
 December 2022.  He agreed to join the LLP 
and also agreed to contribute his office premises at Sanjay Place, Palwal and funds 
of ` 5,00,000 as Capital Contribution in the firm. Manoj joined the firm on 25
th
 
January 2023 as limited liability partner. The above said office premises was 
purchased by Manoj five years ago for ` 25,00,000 but the fair market value of this 
110
office on 25
th
 January 2023 was ` 32,25,000 and on 1
st
 January 2023 was 
` 30,00,000. Manoj has provided his office to the firm with effect from his admission 
and promised to deposit the agreed amount of ` 5,00,000 within six months as 
provided in the partnership deed. Before Manoj could deposit the amount with the 
firm, it was dissolved. Manoj denied to deposit the amount of ` 5,00,000 with the 
contention that he is liable only upto the amount contributed in the firm on the date 
of dissolution. A creditor of the firm sued Manoj to deposit the said amount so that 
the firm may pay off his liability. 
On the basis of above facts and by applying applicable provisions of the Limited 
Liability Partnership Act, 2008 and the applicable Rules therein, choose the correct 
answer (one out of four) of the following Multiple Choice Questions (MCQs 6-8) 
given herein under: -  
6. Whether Manoj could be considered as resident or not as per the Limited
Liability Act, 2008?
(a) Manoj could not be considered resident in India as he was not in India
for 182 days in preceding one year
(b) Manoj could not be considered resident in India as he was not in India
for 120 days in preceding one year i.e. only for 33 days from 24
th
December 2022 to 25
th
 January 2023
(c) Manoj could not be considered as he was not in India for 182 days during
the financial year
(d) Manoj will be considered as resident in India as he was in India for 120
days during the financial year (2021- 2022)
7. What would be the worth of Capital Contribution by Manoj?
(a) ` 25,00,000
(b) ` 32,25,000
(c) ` 37,25,000
(d) ` 35,00,000
8. Whether Manoj will be liable to contribute ` 5,00,000 after dissolution of the
firm?
(a) Yes, because a partner is personally liable for the deficiency arising at
the time of dissolution of LLP.
(b) No, because a partner is never personally liable for the deficiency arose
at the time of dissolution of LLP.
(c) Yes, the partner is under obligation to contribute money also to LLP as
per the agreement.
(d) No, because a partner is personally liable only upto the amount
contributed to the LLP on the date of dissolution of LLP.
9. Finload Limited wants to raise funds for its upcoming project. Accordingly, it
has issued private placement offer letters for issuing equity shares to 57
persons, of which six are qualified institutional buyers and remaining are
individuals.
111
Page 5


MODEL TEST PAPER 2 
INTERMEDIATE COURSE: GROUP – I  
PAPER – 2: CORPORATE AND OTHER LAWS 
Time Allowed – 3 Hours Maximum Marks – 100 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises Case Scenario based Multiple Choice Questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case Scenario based MCQs (30 Marks) 
Part I is compulsory 
Case Scenario 1 
ACC Private Limited was incorporated in July 2001. It is registered with an 
authorised share capital of ` 20 crore divided into 2 crore equity shares of ` 10/- 
each. The paid-up share capital of the company is ` 10 crore divided into 1 crore 
equity shares of ` 10/- each.  
The Board of Directors of the company in their meeting held on 11
th
 August, 2023 
declared interim dividend. The Annual General Meeting of the company was held 
on 1
st
 September, 2023. The company had incurred losses in the previous financial 
year as well as in the current financial year upto the period ended June 30, 2023. 
In the previous five financial years, the company had declared the dividend as 
under:  
Financial Year 
Ended 
Dividend declared per 
share (`) 
Dividend declared 
rate (%) 
March 31, 2023 Nil Nil 
March 31, 2022 1.00 10% 
March 31, 2021 1.10 11% 
March 31, 2020 1.30 13% 
March 31, 2019 1.20 12% 
The company has deposited the amount of dividend declared in a separate account 
with ABC Bank on August 14, 2023. Out of the total dividend declared, ` 60,000 
payable to few equity shareholders remains unclaimed even after the expiry of 
statutory period within which dividend was required to be paid and had been 
transferred to a separate bank account Unpaid Dividend Account on 20
th
 
September 2023. The company prepares a statement containing the names of 
shareholders, their last known address and the unpaid dividend amount to such 
each shareholder and place on its website. 
Meanwhile, the company obtained a term loan of ` 15 crore from Laxmi Bank 
Limited on August 20, 2023, securing it with a charge on the company's assets, 
including its own buildings (in India and Germany) and intangible assets (trademark 
right over the company’s logo). According to the Companies Act, 2013, the 
company was required to register this charge with the Registrar within a specified 
108
timeframe. However, the company failed to complete the registration process within 
the prescribed timeline. 
The Board of Directors has requested their Company Secretary to confirm them 
whether they are required to incur expenditure towards Corporate Social 
Responsibility during the financial year 2023-2024 and is required to constitute 
CSR committee.  
The financial particulars in respect of immediately preceding financial year are as 
under:  
S. No. Particulars Amount (` in crore) 
1 Net worth 100 
2 Turnover 1010 
3 Net Profit 4.9 
4 Borrowings 60 
On the basis of above facts and by applying applicable provisions of the Companies 
Act, 2013 and the applicable Rules therein, choose the correct answer (one out of 
four) of the following Multiple Choice Questions (MCQs 1-5) given herein under: -  
1. The company can create charge in favour of the lender on the assets which
are:
(a) Tangible Assets and situated in India only
(b) Intangible Assets and situated in India only
(c) Assets that are tangible or otherwise and situated in India or Germany
(d) Assets that are tangible or otherwise and situated in India only
2. The maximum rate at which interim dividend can be declared by the Board
during the current financial year is as under: -
(a) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding two financial years, i.e. 5%. 
(b) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding three financial years, i.e. 7%. 
(c) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding four financial years, i.e. 8.5%. 
(d) The board cannot declare the interim dividend at a rate higher than the
average dividend declared by the company immediately during 
preceding five financial years, i.e. 9.2%. 
3. In respect of dividend declared which of the Statement is not correct?
(a) The company has transferred the dividend amount to separate bank
account within 5 days from the date of declaration of dividend.
109
(b) The company is required to pay dividend within 30 days from the date of
declaration of dividend.
(c) The company is required to transfer the Unpaid dividend to a separate
bank account within 10 days from the date of expiry of statutory period
from the date of declaration of dividend.
(d) The company is required to prepare a statement containing the names
of shareholders, their last known address and the unpaid dividend
amount to such each shareholder and place on its website within 90 days
from the date of transferring the amount to Unpaid Dividend Account.
4. Choose the correct option in terms that whether the provisions of Corporate
Social Responsibility are applicable to ACC Private Limited.
(a) The provisions of Corporate Social Responsibility are not applicable to
ACC Private Limited as it is a private limited company.
(b) Yes, as ACC Private Limited is having turnover of more than ` 1000
crore.
(c) Yes, as ACC Private Limited is having net profit of more than ` 2.5 crore
in the immediately preceding financial year.
(d) Yes, as ACC Private Limited is having net worth of more than ` 50 crore
in the immediately preceding financial year.
5. The notice for the Annual General Meeting should be served by:
(a) 6
th
 August 2023
(b) 7
th
 August 2023
(c) 8
th
 August 2023
(d) 10
th
 August 2023
Case Scenario 2 
Sudeep and Ankit are very fast friend since long. They decided to run a service unit 
which will provide “Financial and Investment Consultancy Services”. For this 
purpose they formed a limited liability partnership under the name M/s Etharkkum 
Advisors LLP on 17
th
 April 2020. For this purpose, they prepared a Limited Liability 
Partnership Deed of which one of the clauses provides that a new partner may be 
admitted in the LLP with capital contribution which may be in kind or cash. Further 
new partner is also required to deposit the agreed amount of capital contribution 
within six months from the date of his admission.  
After some time, office of the firm was destroyed due to an earthquake and the LLP 
was in urgent need of an office premises and some funds for some renovation work. 
It is also informed that M/s Etharkkum Advisors LLP approached Manoj on 
1
st
 January 2023 to join the firm as third partner. Manoj was out of India for the 
period from 1
st
 September 2021 to 23
rd
 December 2022.  He agreed to join the LLP 
and also agreed to contribute his office premises at Sanjay Place, Palwal and funds 
of ` 5,00,000 as Capital Contribution in the firm. Manoj joined the firm on 25
th
 
January 2023 as limited liability partner. The above said office premises was 
purchased by Manoj five years ago for ` 25,00,000 but the fair market value of this 
110
office on 25
th
 January 2023 was ` 32,25,000 and on 1
st
 January 2023 was 
` 30,00,000. Manoj has provided his office to the firm with effect from his admission 
and promised to deposit the agreed amount of ` 5,00,000 within six months as 
provided in the partnership deed. Before Manoj could deposit the amount with the 
firm, it was dissolved. Manoj denied to deposit the amount of ` 5,00,000 with the 
contention that he is liable only upto the amount contributed in the firm on the date 
of dissolution. A creditor of the firm sued Manoj to deposit the said amount so that 
the firm may pay off his liability. 
On the basis of above facts and by applying applicable provisions of the Limited 
Liability Partnership Act, 2008 and the applicable Rules therein, choose the correct 
answer (one out of four) of the following Multiple Choice Questions (MCQs 6-8) 
given herein under: -  
6. Whether Manoj could be considered as resident or not as per the Limited
Liability Act, 2008?
(a) Manoj could not be considered resident in India as he was not in India
for 182 days in preceding one year
(b) Manoj could not be considered resident in India as he was not in India
for 120 days in preceding one year i.e. only for 33 days from 24
th
December 2022 to 25
th
 January 2023
(c) Manoj could not be considered as he was not in India for 182 days during
the financial year
(d) Manoj will be considered as resident in India as he was in India for 120
days during the financial year (2021- 2022)
7. What would be the worth of Capital Contribution by Manoj?
(a) ` 25,00,000
(b) ` 32,25,000
(c) ` 37,25,000
(d) ` 35,00,000
8. Whether Manoj will be liable to contribute ` 5,00,000 after dissolution of the
firm?
(a) Yes, because a partner is personally liable for the deficiency arising at
the time of dissolution of LLP.
(b) No, because a partner is never personally liable for the deficiency arose
at the time of dissolution of LLP.
(c) Yes, the partner is under obligation to contribute money also to LLP as
per the agreement.
(d) No, because a partner is personally liable only upto the amount
contributed to the LLP on the date of dissolution of LLP.
9. Finload Limited wants to raise funds for its upcoming project. Accordingly, it
has issued private placement offer letters for issuing equity shares to 57
persons, of which six are qualified institutional buyers and remaining are
individuals.
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Choose the correct statement as per the provisions of the Companies Act, 
2013: 
(a) Finload Limited company is a public limited company hence it can not
issue shares through private placement.
(b) Since, Finload Limited has made an offer or invitation to more than the
prescribed number of persons, it shall be deemed to be an offer to the
public and accordingly, it shall be governed by the provisions relating to
prospectus.
(c) Finload Limited has made an offer or invitation to less than the
prescribed number of persons as qualified institutional buyers are not
counted to calculate the prescribed limit.
(d) Finload Limited cannot issue shares to qualified institutional buyers, as
under private placement shares cannot be issued to qualified
institutional buyers.
10. Company X, a leading automobile manufacturer, has invested in Company Y,
a start-up specializing in electric vehicle technology. Company X holds a 25%
stake in Company Y and actively participates in its strategic decisions. Based
on the provisions of the Companies Act 2013 regarding associate companies,
which of the following statements is correct?
(a) Company X's investment in Company Y does not qualify as an associate
company because Company X does not have control of at least 50% of
the total voting power.
(b) Company Y qualifies as an associate company of Company X since
Company X holds a 25% stake in Company Y and actively participates
in its strategic decisions.
(c) Company Y cannot be considered an associate company of Company X
because it is a start-up and does not meet the minimum criteria for
significant influence.
(d) Company X's investment in Company Y falls under the category of joint
venture and does not qualify as an associate company according to the
Companies Act 2013.
Case Scenario 3 
M/s Aryan & Aryan LLP was registered on 2
nd
 July 2019. Sudeep and Ankit were 
partners in the firm. Both Sudeep and Ankit were also the designated partners in 
this firm. The LLP deals in manufacturing and trading of electric ceiling fans. One 
day Sudeep met with Mr. Kishore, a director of Krtiken Electronics Private Limited. 
After discussion, Mr. Kishore showed interest that Krtiken Electronics Private 
Limited may work with M/s Aryan & Aryan LLP as partner.  
Krtiken Electronics Private Limited was incorporated on 1
st
 June 2017 with the 
object to deal in electronics. The memorandum and articles of association of Krtiken 
Electronics Private Limited also authorised it to work as partner in a LLP.  
The partners of M/s Aryan & Aryan LLP and directors of Krtiken Electronics Private 
Limited approached a professional consultant Mrs. Archika Jain for providing the 
procedure for adding Krtiken Electronics Private Limited as a partner in M/s Aryan 
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