hitechpathshala

Q. 1

ABC Limited has its shares listed on a recognized stock exchange in India. During the current financial year ending on 31st March 2023, the Securities and Exchange Board of India (SEBI) has found some irregularities in the filings made by the company. Accordingly, SEBI proposes to make an application to the Tribunal for reopening of the books of account of the Company. You, as an expert, are called upon by SEBI to advise the earliest financial year to be quoted in application for reopening of books of account may be granted by Tribunal?

2018-2019

2016-2017

2013-2014

2014-2015

Q. 2

During the half year ended September 2022, the board of directors (BOD) of New Era Limited has made an application to the Tribunal for revision in the accounts of the company for the financial year ended on March 2020. Further during the year ended March 2023, the BOD has again made an application to the Tribunal for revision in the board’s report pertaining to the year ended March 2022. You are required to state the validity of the acts of the Board of directors

The act of the BOD is valid only to the extent of application made for revisions in accounts as board’s report are not eligible for revision.

The act of the BOD is valid as application made for revision in the accounts and board’s report pertains to two different financial year

The act of the BOD is invalid as the law provides for only one time application to be made in a financial year for revision of accounts and boards report.

The act of the BOD is invalid as to the application made for revision in accounts pertains to a period beyond 2 years immediately preceding the year 2023. The application made for revision in the Board report is however valid in law.

Q. 3

Shri Limited (a company having CSR Committee as per the provision of Section 135 of the Companies Act, 2013) decides to spend and utilize the amount of Corporate Social Responsibility on the activities for the benefit of all the employees of Shri Limited. As per the provision of Companies Act, 2013 this would mean that:

This is the total amount spent on Corporate Social Responsibility activities by Shri Limited for that financial year

No amount spent on Corporate Social Responsibility activities by Shri Limited for that financial year

Only half of the total amount spent, shall be considered to be spent on Corporate Social Responsibility activities by Shri Limited for that financial year

Only the amount that has been spent on the employees having salary of ₹ 20,000 per month or less, shall be considered be considered to be spent on Corporate Social Responsibility activities by Shri Limited for that financial year.

Q. 4

Modern Furniture Limited (MFL) is required to prepare the financial statement that comply with accounting standards and shall be in form specified in schedule III. But the financial statement prepared and presented are not in compliance with applicable accounting standards, therefore MFL required to disclose which of following:
i. Deviation
ii. Reason of deviation
iii. Financial effects arise out of such deviation.

Only i

Only i and ii

Only i and iii

All of i, ii, and iii

Q. 5

Excellent Art Private Limited, has a paid up capital of Rs.50 crore, Turnover of Rs.25 crore and borrowing of Rs.25 crore and outstanding deposits of Rs.30 crore. Decide if the Company needs to comply with internal audit requirements under the Act?

No. The provisions of Internal audit are not applicable on private companies.

Yes. Company is having Paid up capital of Rs.50 Crore and outstanding deposits more than Rs.25 crore.

No. Because the borrowings are less than Rs.100 crore and Turnover is less than Rs.200 crore

None of the above

Q. 6

A company can re- open / recast its book of accounts on an application to Tribunal made by:

Registrar

Member

Board of Directors

Income –tax authorities

Q. 7

One Person Company shall file a copy of the duly adopted financial statements to the Registrar in:

30 days of the date of meeting in which it was adopted.

90 days of the date of meeting in which it was adopted.

90 days from the closure of the financial year.

180 days from the closure of the financial year

Q. 8

Shri Limited (a company having CSR Committee as per the provision of Section 135 of the Companies Act, 2013) decides to spend and utilize the amount of Corporate Social Responsibility on the activities for the benefit of all the employees of Shri Limited. As per the provision of Companies Act, 2013 this would mean that:-

This is the total amount spent on Corporate Social Responsibility activities by Shri Limited for that financial year

No amount spent on Corporate Social Responsibility activities by Shri Limited for that financial year

Only Half of the total amount spent, shall be considered to be spent on Corporate Social Responsibility activities by Shri Limited for that financial year

Only the amount that has been spent on the employees having salary of Rs. 20,000 per month or less, shall be considered be considered to be spent on Corporate Social Responsibility activities by Shri Limited for that financial year.

Q. 9

As per the provisions of the Companies Act, 2013, which of the following statement is correct with respect to the surplus arising out of the CSR activities:

The surplus cannot exceed five percent of total CSR expenditure of the company for the financial year.

The surplus shall not form part of the business profit of a company

The surplus cannot exceed 10 percent of total CSR expenditure of the company for the financial year.

The surplus shall form part of the business profit of a company

Q. 10

ABC Limited has its shares listed on a recognized stock exchange in India. During the current financial year ending on 31st March 2021, the securities and exchange board of India (SEBI) has found some irregularities in the filings made by the company. Accordingly, SEBI proposes to make an application to the Tribunal for reopening of the books of accounts of the Company. You, as an expert, are called upon by SEBI to advise with which last financial year for reopening of books of accounts an application can be made?

2016-2017

2014-2015

2011-2012

2012-2013

Q. 11

During the half year ended September 2020, the board of directors (BOD) of Gold Leaf Limited has made an application to the Tribunal for revision in the accounts of the company for the financial year ended on March 2018. Further during the year ended March 2021, the BOD has again made an application to the Tribunal for revision in the board’s report pertaining to the year ended March 2020. You are required to state the validity of the acts of the Board of directors.

The act of the BOD is valid only to the extent of application made for revisions in accounts as board’s report are not eligible for revision.

The act of the BOD is valid as application made for revision in the accounts and board’s report pertains to two different financial year.

The act of the BOD is invalid as the law provides for only one time application to be made in a financial year for revision of accounts and boards report.

The act of the BOD is invalid as to the application made for revision in accounts pertains to a period beyond 2 years immediately preceding the year 2021. The application made for revision in the Board report is however valid in law.

Q. 12

The financial statement in relation to a dormant company may not include:

balance sheet

cash flow statement

applicable explanatory note

profit and loss account

Accounts of companies

Marks: 12