Corporate and Other Laws (Group I) Model Test Paper - 4 (Questions) | Model Test Papers for CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 4 
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 
GlobalTech Pvt. Ltd., a technology giant with operations in software development, 
hardware manufacturing, and IT consulting, has recorded significant financial 
growth over the past few years. For the financial year 2023-2024, the company 
reported the following financial metrics: 
? Net worth: ` 520 crore
? Turnover: ` 1,050 crore
? Net profit: ` 4.5 crore
In the financial year 2022-2023, GlobalTech Pvt. Ltd. had a net worth of ` 480 crore, 
a turnover of ` 1,020 crore, and a net profit of ` 4 crore. The company has a 
subsidiary, TechSubs Ltd., and a foreign subsidiary, GlobalTech International, 
which has a branch office in India. 
GlobalTech Pvt. Ltd. spent ` 1.2 crore on various CSR activities during the financial 
year 2023-2024. However, ` 30 lakh remained unspent and was transferred to the 
Unspent Corporate Social Responsibility Account as per section 135(6) of the 
Companies Act, 2013. 
The company’s board comprises members from different parts of the country and 
they ensure that the administrative overheads do not exceed the prescribed limit of 
total CSR expenditure.  
The company held its annual general meeting on 20
th
 August, 2024 and filed the 
annual return in compliance with the provisions of the Companies Act, 2013. 
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. Based on the financial metrics of GlobalTech Pvt. Ltd., is the company
required to constitute a Corporate Social Responsibility (CSR) Committee for
the for the financial year 2023-2024?
(a) Yes, because its net worth exceeds ` 500 crore.
(b) No, because it has not met the required net profit criteria.
(c) Yes, because its turnover exceeds ` 1,000 crore.
129
Page 2


MODEL TEST PAPER 4 
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 
GlobalTech Pvt. Ltd., a technology giant with operations in software development, 
hardware manufacturing, and IT consulting, has recorded significant financial 
growth over the past few years. For the financial year 2023-2024, the company 
reported the following financial metrics: 
? Net worth: ` 520 crore
? Turnover: ` 1,050 crore
? Net profit: ` 4.5 crore
In the financial year 2022-2023, GlobalTech Pvt. Ltd. had a net worth of ` 480 crore, 
a turnover of ` 1,020 crore, and a net profit of ` 4 crore. The company has a 
subsidiary, TechSubs Ltd., and a foreign subsidiary, GlobalTech International, 
which has a branch office in India. 
GlobalTech Pvt. Ltd. spent ` 1.2 crore on various CSR activities during the financial 
year 2023-2024. However, ` 30 lakh remained unspent and was transferred to the 
Unspent Corporate Social Responsibility Account as per section 135(6) of the 
Companies Act, 2013. 
The company’s board comprises members from different parts of the country and 
they ensure that the administrative overheads do not exceed the prescribed limit of 
total CSR expenditure.  
The company held its annual general meeting on 20
th
 August, 2024 and filed the 
annual return in compliance with the provisions of the Companies Act, 2013. 
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. Based on the financial metrics of GlobalTech Pvt. Ltd., is the company
required to constitute a Corporate Social Responsibility (CSR) Committee for
the for the financial year 2023-2024?
(a) Yes, because its net worth exceeds ` 500 crore.
(b) No, because it has not met the required net profit criteria.
(c) Yes, because its turnover exceeds ` 1,000 crore.
129
(d)  No, because its net profit is less than ` 5 crore. 
2.  Given that GlobalTech Pvt. Ltd. has ` 30 lakh in its Unspent Corporate Social 
Responsibility Account, which of the following statements is true? 
(a)  The company is not required to constitute a CSR Committee if it has 
unspent CSR funds. 
(b)  The company must constitute a CSR Committee in Financial year  
2024-2025, as it has balance in Unspent CSR account. 
(c) The company can use the unspent funds for any other business activity. 
(d)  The company must transfer the unspent amount to the Prime Minister's 
National Relief Fund. 
3.  If GlobalTech Pvt. Ltd. had an average net profit of ` 5 crore over the past 
three immediately preceding financial years, what is the minimum amount it 
must spend on CSR activities in the financial year 2024-2025? 
(a)  ` 5 lakh 
(b)  ` 10 lakh 
(c)  ` 20 lakh 
(d) ` 30 lakh 
4.  GlobalTech Pvt. Ltd. must ensure that the administrative overheads do not 
exceed a certain percentage of the total CSR expenditure. What is this 
percentage? 
(a)  2% 
(b)  5% 
(c)  10% 
(d)  15% 
5.  What is the latest date by which GlobalTech Pvt. Ltd. must it file its annual 
return with the Registrar of Companies (RoC)? 
(a)  10
th
 September 2024 
(b)  15
th
 September 2024 
(c)  10
th
 October 2024 
(d)  19
th
 October 2024 
Case Scenario 2 
GreenLeaf LLP is a limited liability partnership engaged in the business of eco-
friendly product manufacturing. The LLP was initially established with three 
partners: Priya, Sameer, and EcoCorp Ltd., a corporate entity. Priya and Sameer 
are the designated partners, with Priya being a resident in India. EcoCorp Ltd. has 
appointed Anil, an individual, as its nominee to act on its behalf. 
After a few years, Sameer decides to retire, leaving Priya and EcoCorp Ltd. as the 
remaining partners. Due to some administrative oversight, GreenLeaf LLP 
continues its operations without appointing a new partner. This situation persists 
130
Page 3


MODEL TEST PAPER 4 
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 
GlobalTech Pvt. Ltd., a technology giant with operations in software development, 
hardware manufacturing, and IT consulting, has recorded significant financial 
growth over the past few years. For the financial year 2023-2024, the company 
reported the following financial metrics: 
? Net worth: ` 520 crore
? Turnover: ` 1,050 crore
? Net profit: ` 4.5 crore
In the financial year 2022-2023, GlobalTech Pvt. Ltd. had a net worth of ` 480 crore, 
a turnover of ` 1,020 crore, and a net profit of ` 4 crore. The company has a 
subsidiary, TechSubs Ltd., and a foreign subsidiary, GlobalTech International, 
which has a branch office in India. 
GlobalTech Pvt. Ltd. spent ` 1.2 crore on various CSR activities during the financial 
year 2023-2024. However, ` 30 lakh remained unspent and was transferred to the 
Unspent Corporate Social Responsibility Account as per section 135(6) of the 
Companies Act, 2013. 
The company’s board comprises members from different parts of the country and 
they ensure that the administrative overheads do not exceed the prescribed limit of 
total CSR expenditure.  
The company held its annual general meeting on 20
th
 August, 2024 and filed the 
annual return in compliance with the provisions of the Companies Act, 2013. 
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. Based on the financial metrics of GlobalTech Pvt. Ltd., is the company
required to constitute a Corporate Social Responsibility (CSR) Committee for
the for the financial year 2023-2024?
(a) Yes, because its net worth exceeds ` 500 crore.
(b) No, because it has not met the required net profit criteria.
(c) Yes, because its turnover exceeds ` 1,000 crore.
129
(d)  No, because its net profit is less than ` 5 crore. 
2.  Given that GlobalTech Pvt. Ltd. has ` 30 lakh in its Unspent Corporate Social 
Responsibility Account, which of the following statements is true? 
(a)  The company is not required to constitute a CSR Committee if it has 
unspent CSR funds. 
(b)  The company must constitute a CSR Committee in Financial year  
2024-2025, as it has balance in Unspent CSR account. 
(c) The company can use the unspent funds for any other business activity. 
(d)  The company must transfer the unspent amount to the Prime Minister's 
National Relief Fund. 
3.  If GlobalTech Pvt. Ltd. had an average net profit of ` 5 crore over the past 
three immediately preceding financial years, what is the minimum amount it 
must spend on CSR activities in the financial year 2024-2025? 
(a)  ` 5 lakh 
(b)  ` 10 lakh 
(c)  ` 20 lakh 
(d) ` 30 lakh 
4.  GlobalTech Pvt. Ltd. must ensure that the administrative overheads do not 
exceed a certain percentage of the total CSR expenditure. What is this 
percentage? 
(a)  2% 
(b)  5% 
(c)  10% 
(d)  15% 
5.  What is the latest date by which GlobalTech Pvt. Ltd. must it file its annual 
return with the Registrar of Companies (RoC)? 
(a)  10
th
 September 2024 
(b)  15
th
 September 2024 
(c)  10
th
 October 2024 
(d)  19
th
 October 2024 
Case Scenario 2 
GreenLeaf LLP is a limited liability partnership engaged in the business of eco-
friendly product manufacturing. The LLP was initially established with three 
partners: Priya, Sameer, and EcoCorp Ltd., a corporate entity. Priya and Sameer 
are the designated partners, with Priya being a resident in India. EcoCorp Ltd. has 
appointed Anil, an individual, as its nominee to act on its behalf. 
After a few years, Sameer decides to retire, leaving Priya and EcoCorp Ltd. as the 
remaining partners. Due to some administrative oversight, GreenLeaf LLP 
continues its operations without appointing a new partner. This situation persists 
130
for seven months, with Priya being aware of the reduced number of partners. During 
this period, GreenLeaf LLP enters into several contracts and incurs significant 
financial obligations. 
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.  Given that Sameer retired and GreenLeaf LLP continued with only Priya and 
EcoCorp Ltd., what should GreenLeaf LLP have done within six months to 
comply with the LLP Act? 
(a)  Dissolved the LLP 
(b)  Continue operating with one designated partner 
(c)  Appoint at least one body corporate which should be a foreign company 
(d)  Appointed at least one more partner who should also be a designated 
partner, as every LLP should have at least two designated partners 
7.  According to the Limited Liability Partnership Act, 2008, choose the correct 
statement in relation to who must be a resident in India among the designated 
partners? 
(a)  At least one individual designated partner shall be resident in India 
(b)  All designated partners shall only be resident in India 
(c)  It is mandatory for only corporate partners to be resident in India 
(d)  At least four designated partners shall be resident in India 
8.  In the given case scenario suppose EcoCorp Ltd. also leaves the LLP and the 
LLP continues business for more than six months with only one partner, who 
is personally liable for the obligations incurred during that period? 
(a)  Priya 
(b)  Both Priya and EcoCorp Ltd. 
(c)  EcoCorp Ltd. 
(d)  Priya, Sameer and EcoCorp Ltd. 
9. Lavender International Entertainment Inc., headquartered and registered in 
New York City and a prominent name in lifestyle audio innovations, 
professional audio and lighting solutions, and digital transformation, is present 
in more than seventy countries including India. Due to certain mis-
happenings, the company was unable to file its financial statements along with 
necessary documents for the year 2023 with the Registrar of Companies (in 
India) within the stipulated time as permitted by the Companies Act, 2013. It 
is observed that the ROC may, for any special reason and on an application 
made in writing by Lavender International Entertainment, extend the ‘filing 
time’ maximum up to a certain period. From the following options, choose the 
correct one in this respect: 
(a) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
131
Page 4


MODEL TEST PAPER 4 
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 
GlobalTech Pvt. Ltd., a technology giant with operations in software development, 
hardware manufacturing, and IT consulting, has recorded significant financial 
growth over the past few years. For the financial year 2023-2024, the company 
reported the following financial metrics: 
? Net worth: ` 520 crore
? Turnover: ` 1,050 crore
? Net profit: ` 4.5 crore
In the financial year 2022-2023, GlobalTech Pvt. Ltd. had a net worth of ` 480 crore, 
a turnover of ` 1,020 crore, and a net profit of ` 4 crore. The company has a 
subsidiary, TechSubs Ltd., and a foreign subsidiary, GlobalTech International, 
which has a branch office in India. 
GlobalTech Pvt. Ltd. spent ` 1.2 crore on various CSR activities during the financial 
year 2023-2024. However, ` 30 lakh remained unspent and was transferred to the 
Unspent Corporate Social Responsibility Account as per section 135(6) of the 
Companies Act, 2013. 
The company’s board comprises members from different parts of the country and 
they ensure that the administrative overheads do not exceed the prescribed limit of 
total CSR expenditure.  
The company held its annual general meeting on 20
th
 August, 2024 and filed the 
annual return in compliance with the provisions of the Companies Act, 2013. 
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. Based on the financial metrics of GlobalTech Pvt. Ltd., is the company
required to constitute a Corporate Social Responsibility (CSR) Committee for
the for the financial year 2023-2024?
(a) Yes, because its net worth exceeds ` 500 crore.
(b) No, because it has not met the required net profit criteria.
(c) Yes, because its turnover exceeds ` 1,000 crore.
129
(d)  No, because its net profit is less than ` 5 crore. 
2.  Given that GlobalTech Pvt. Ltd. has ` 30 lakh in its Unspent Corporate Social 
Responsibility Account, which of the following statements is true? 
(a)  The company is not required to constitute a CSR Committee if it has 
unspent CSR funds. 
(b)  The company must constitute a CSR Committee in Financial year  
2024-2025, as it has balance in Unspent CSR account. 
(c) The company can use the unspent funds for any other business activity. 
(d)  The company must transfer the unspent amount to the Prime Minister's 
National Relief Fund. 
3.  If GlobalTech Pvt. Ltd. had an average net profit of ` 5 crore over the past 
three immediately preceding financial years, what is the minimum amount it 
must spend on CSR activities in the financial year 2024-2025? 
(a)  ` 5 lakh 
(b)  ` 10 lakh 
(c)  ` 20 lakh 
(d) ` 30 lakh 
4.  GlobalTech Pvt. Ltd. must ensure that the administrative overheads do not 
exceed a certain percentage of the total CSR expenditure. What is this 
percentage? 
(a)  2% 
(b)  5% 
(c)  10% 
(d)  15% 
5.  What is the latest date by which GlobalTech Pvt. Ltd. must it file its annual 
return with the Registrar of Companies (RoC)? 
(a)  10
th
 September 2024 
(b)  15
th
 September 2024 
(c)  10
th
 October 2024 
(d)  19
th
 October 2024 
Case Scenario 2 
GreenLeaf LLP is a limited liability partnership engaged in the business of eco-
friendly product manufacturing. The LLP was initially established with three 
partners: Priya, Sameer, and EcoCorp Ltd., a corporate entity. Priya and Sameer 
are the designated partners, with Priya being a resident in India. EcoCorp Ltd. has 
appointed Anil, an individual, as its nominee to act on its behalf. 
After a few years, Sameer decides to retire, leaving Priya and EcoCorp Ltd. as the 
remaining partners. Due to some administrative oversight, GreenLeaf LLP 
continues its operations without appointing a new partner. This situation persists 
130
for seven months, with Priya being aware of the reduced number of partners. During 
this period, GreenLeaf LLP enters into several contracts and incurs significant 
financial obligations. 
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.  Given that Sameer retired and GreenLeaf LLP continued with only Priya and 
EcoCorp Ltd., what should GreenLeaf LLP have done within six months to 
comply with the LLP Act? 
(a)  Dissolved the LLP 
(b)  Continue operating with one designated partner 
(c)  Appoint at least one body corporate which should be a foreign company 
(d)  Appointed at least one more partner who should also be a designated 
partner, as every LLP should have at least two designated partners 
7.  According to the Limited Liability Partnership Act, 2008, choose the correct 
statement in relation to who must be a resident in India among the designated 
partners? 
(a)  At least one individual designated partner shall be resident in India 
(b)  All designated partners shall only be resident in India 
(c)  It is mandatory for only corporate partners to be resident in India 
(d)  At least four designated partners shall be resident in India 
8.  In the given case scenario suppose EcoCorp Ltd. also leaves the LLP and the 
LLP continues business for more than six months with only one partner, who 
is personally liable for the obligations incurred during that period? 
(a)  Priya 
(b)  Both Priya and EcoCorp Ltd. 
(c)  EcoCorp Ltd. 
(d)  Priya, Sameer and EcoCorp Ltd. 
9. Lavender International Entertainment Inc., headquartered and registered in 
New York City and a prominent name in lifestyle audio innovations, 
professional audio and lighting solutions, and digital transformation, is present 
in more than seventy countries including India. Due to certain mis-
happenings, the company was unable to file its financial statements along with 
necessary documents for the year 2023 with the Registrar of Companies (in 
India) within the stipulated time as permitted by the Companies Act, 2013. It 
is observed that the ROC may, for any special reason and on an application 
made in writing by Lavender International Entertainment, extend the ‘filing 
time’ maximum up to a certain period. From the following options, choose the 
correct one in this respect: 
(a) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
131
be extended by ROC maximum by one month beyond the stipulated time 
period. 
(b) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
be extended by ROC maximum by two months beyond the stipulated 
time period. 
(c) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
be extended by ROC maximum by three months beyond the stipulated 
time period. 
(d) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
be extended by ROC maximum by six months beyond the stipulated time 
period. 
10. The Board of Directors Vishvas Ltd. decide to pay 5% of the issue price of 
shares as underwriting commission to the underwriters. However, the Articles 
of Association of the company permit only 3% commission. What is the 
maximum amount of underwriting commission that can be paid to the 
underwriters. 
(a) 2% 
(b) 3% 
(c) 5% 
(d) No limit has prescribed under the Companies Act, 2013 in case 
underwriting commission is to be paid in case of issue of shares. 
Case Scenario 3 
Amit, an Indian resident during the Financial Year (FY) 2021-2022, decided to 
pursue higher studies in Biotechnology in Switzerland. On 15th July 2022, he left 
India to begin his two-year academic program. The determination of Amit’s 
residential status under the Foreign Exchange Management Act (FEMA), 1999, for 
the Financial Years 2022-2023 and 2023-2024, is crucial to understand his 
obligations and entitlements concerning foreign exchange transactions. 
In terms of financial requirements, Amit needs USD 25,000 annually to cover his 
tuition fees. Additionally, he requires USD 30,000 annually for incidental expenses 
and living costs while studying abroad. Thus, his total annual requirement amounts 
to USD 55,000, making it imperative to assess the provisions under the Foreign 
Exchange Management Act, 1999, that govern the remittance of foreign. 
On the basis of above facts and by applying applicable provisions of the Foreign 
Exchange Management Act, 1999, therein, choose the correct answer (one out of 
four) of the following MCQs (11-13) given herein under: 
11. What would be Amit’s residential status for FY 2022-2023 under FEMA, 1999? 
(a)  Resident in India 
(b)  Non-Resident Indian (NRI) 
132
Page 5


MODEL TEST PAPER 4 
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 
GlobalTech Pvt. Ltd., a technology giant with operations in software development, 
hardware manufacturing, and IT consulting, has recorded significant financial 
growth over the past few years. For the financial year 2023-2024, the company 
reported the following financial metrics: 
? Net worth: ` 520 crore
? Turnover: ` 1,050 crore
? Net profit: ` 4.5 crore
In the financial year 2022-2023, GlobalTech Pvt. Ltd. had a net worth of ` 480 crore, 
a turnover of ` 1,020 crore, and a net profit of ` 4 crore. The company has a 
subsidiary, TechSubs Ltd., and a foreign subsidiary, GlobalTech International, 
which has a branch office in India. 
GlobalTech Pvt. Ltd. spent ` 1.2 crore on various CSR activities during the financial 
year 2023-2024. However, ` 30 lakh remained unspent and was transferred to the 
Unspent Corporate Social Responsibility Account as per section 135(6) of the 
Companies Act, 2013. 
The company’s board comprises members from different parts of the country and 
they ensure that the administrative overheads do not exceed the prescribed limit of 
total CSR expenditure.  
The company held its annual general meeting on 20
th
 August, 2024 and filed the 
annual return in compliance with the provisions of the Companies Act, 2013. 
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. Based on the financial metrics of GlobalTech Pvt. Ltd., is the company
required to constitute a Corporate Social Responsibility (CSR) Committee for
the for the financial year 2023-2024?
(a) Yes, because its net worth exceeds ` 500 crore.
(b) No, because it has not met the required net profit criteria.
(c) Yes, because its turnover exceeds ` 1,000 crore.
129
(d)  No, because its net profit is less than ` 5 crore. 
2.  Given that GlobalTech Pvt. Ltd. has ` 30 lakh in its Unspent Corporate Social 
Responsibility Account, which of the following statements is true? 
(a)  The company is not required to constitute a CSR Committee if it has 
unspent CSR funds. 
(b)  The company must constitute a CSR Committee in Financial year  
2024-2025, as it has balance in Unspent CSR account. 
(c) The company can use the unspent funds for any other business activity. 
(d)  The company must transfer the unspent amount to the Prime Minister's 
National Relief Fund. 
3.  If GlobalTech Pvt. Ltd. had an average net profit of ` 5 crore over the past 
three immediately preceding financial years, what is the minimum amount it 
must spend on CSR activities in the financial year 2024-2025? 
(a)  ` 5 lakh 
(b)  ` 10 lakh 
(c)  ` 20 lakh 
(d) ` 30 lakh 
4.  GlobalTech Pvt. Ltd. must ensure that the administrative overheads do not 
exceed a certain percentage of the total CSR expenditure. What is this 
percentage? 
(a)  2% 
(b)  5% 
(c)  10% 
(d)  15% 
5.  What is the latest date by which GlobalTech Pvt. Ltd. must it file its annual 
return with the Registrar of Companies (RoC)? 
(a)  10
th
 September 2024 
(b)  15
th
 September 2024 
(c)  10
th
 October 2024 
(d)  19
th
 October 2024 
Case Scenario 2 
GreenLeaf LLP is a limited liability partnership engaged in the business of eco-
friendly product manufacturing. The LLP was initially established with three 
partners: Priya, Sameer, and EcoCorp Ltd., a corporate entity. Priya and Sameer 
are the designated partners, with Priya being a resident in India. EcoCorp Ltd. has 
appointed Anil, an individual, as its nominee to act on its behalf. 
After a few years, Sameer decides to retire, leaving Priya and EcoCorp Ltd. as the 
remaining partners. Due to some administrative oversight, GreenLeaf LLP 
continues its operations without appointing a new partner. This situation persists 
130
for seven months, with Priya being aware of the reduced number of partners. During 
this period, GreenLeaf LLP enters into several contracts and incurs significant 
financial obligations. 
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.  Given that Sameer retired and GreenLeaf LLP continued with only Priya and 
EcoCorp Ltd., what should GreenLeaf LLP have done within six months to 
comply with the LLP Act? 
(a)  Dissolved the LLP 
(b)  Continue operating with one designated partner 
(c)  Appoint at least one body corporate which should be a foreign company 
(d)  Appointed at least one more partner who should also be a designated 
partner, as every LLP should have at least two designated partners 
7.  According to the Limited Liability Partnership Act, 2008, choose the correct 
statement in relation to who must be a resident in India among the designated 
partners? 
(a)  At least one individual designated partner shall be resident in India 
(b)  All designated partners shall only be resident in India 
(c)  It is mandatory for only corporate partners to be resident in India 
(d)  At least four designated partners shall be resident in India 
8.  In the given case scenario suppose EcoCorp Ltd. also leaves the LLP and the 
LLP continues business for more than six months with only one partner, who 
is personally liable for the obligations incurred during that period? 
(a)  Priya 
(b)  Both Priya and EcoCorp Ltd. 
(c)  EcoCorp Ltd. 
(d)  Priya, Sameer and EcoCorp Ltd. 
9. Lavender International Entertainment Inc., headquartered and registered in 
New York City and a prominent name in lifestyle audio innovations, 
professional audio and lighting solutions, and digital transformation, is present 
in more than seventy countries including India. Due to certain mis-
happenings, the company was unable to file its financial statements along with 
necessary documents for the year 2023 with the Registrar of Companies (in 
India) within the stipulated time as permitted by the Companies Act, 2013. It 
is observed that the ROC may, for any special reason and on an application 
made in writing by Lavender International Entertainment, extend the ‘filing 
time’ maximum up to a certain period. From the following options, choose the 
correct one in this respect: 
(a) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
131
be extended by ROC maximum by one month beyond the stipulated time 
period. 
(b) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
be extended by ROC maximum by two months beyond the stipulated 
time period. 
(c) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
be extended by ROC maximum by three months beyond the stipulated 
time period. 
(d) ‘Filing time’ in respect of filing of financial statements along with 
necessary documents by Lavender International Entertainment Inc. can 
be extended by ROC maximum by six months beyond the stipulated time 
period. 
10. The Board of Directors Vishvas Ltd. decide to pay 5% of the issue price of 
shares as underwriting commission to the underwriters. However, the Articles 
of Association of the company permit only 3% commission. What is the 
maximum amount of underwriting commission that can be paid to the 
underwriters. 
(a) 2% 
(b) 3% 
(c) 5% 
(d) No limit has prescribed under the Companies Act, 2013 in case 
underwriting commission is to be paid in case of issue of shares. 
Case Scenario 3 
Amit, an Indian resident during the Financial Year (FY) 2021-2022, decided to 
pursue higher studies in Biotechnology in Switzerland. On 15th July 2022, he left 
India to begin his two-year academic program. The determination of Amit’s 
residential status under the Foreign Exchange Management Act (FEMA), 1999, for 
the Financial Years 2022-2023 and 2023-2024, is crucial to understand his 
obligations and entitlements concerning foreign exchange transactions. 
In terms of financial requirements, Amit needs USD 25,000 annually to cover his 
tuition fees. Additionally, he requires USD 30,000 annually for incidental expenses 
and living costs while studying abroad. Thus, his total annual requirement amounts 
to USD 55,000, making it imperative to assess the provisions under the Foreign 
Exchange Management Act, 1999, that govern the remittance of foreign. 
On the basis of above facts and by applying applicable provisions of the Foreign 
Exchange Management Act, 1999, therein, choose the correct answer (one out of 
four) of the following MCQs (11-13) given herein under: 
11. What would be Amit’s residential status for FY 2022-2023 under FEMA, 1999? 
(a)  Resident in India 
(b)  Non-Resident Indian (NRI) 
132
(c)  Person of Indian Origin (PIO) 
(d)  Overseas Citizen of India (OCI) 
12. What would be Amit’s residential status for FY 2023-2024 under FEMA, 1999? 
(a)  Resident in India 
(b)  Non-Resident Indian (NRI) 
(c)  Person of Indian Origin (PIO) 
(d)  Overseas Citizen of India (OCI) 
13. Suppose now Amit wants more money for his living cost abroad. What is the 
maximum amount that can still be remitted abroad per financial year under 
the Liberalized Remittance Scheme (LRS)? 
(a)  USD 100,000 
(b)  USD 195,000 
(c)  USD 200,000 
(d)  USD 500,000 
14. ABC Real Estate Ltd., a prominent real estate company, has recently acquired 
a piece of land in a suburban area. The land has a small lake that is expected 
to generate significant tourism revenue in the future. Additionally, the land has 
several old structures that are permanently fastened to the earth, such as a 
stone pavilion and a historical monument. ABC Real Estate Ltd. plans to 
develop the area by refurbishing the existing structures and enhancing the 
natural surroundings to attract tourists. 
 Considering the above scenario, identify which of the following components 
are classified as "Immovable Property" under the General Clauses Act, 1897: 
(a)  Only the land and the stone pavilion. 
(b) Only the land and the benefits arising from the lake. 
(c) The land, benefits arising from the lake, and the stone pavilion. 
(d) The land, the benefits arising from the lake, the stone pavilion, and the 
historical monument. 
15. The Ministry of Transport is planning to construct a new highway that will 
connect City A and City B. According to the initial plan, the highway is 
expected to cover a distance of 150 kilometers. During the survey, the 
engineers measure the distance between the two cities as the crow flies, 
without considering the natural terrain and existing road curves. This method 
is in line with the provisions of the General Clauses Act, 1897 regarding the 
measurement of distance for the purposes of any Central Act or Regulation. 
 Considering the above scenario, which statement is correct about the 
measurement of distance as per the General Clauses Act, 1897? 
(a)  The distance should be measured along the existing roadways and 
curves. 
133