BADALA CLASSES CA-INTERMEDIATE

CA-FOUNDATION
LAW
CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -1
Preliminary (Definitions, Features & Types of Companies)
MCQ
Preliminary (Definitions, Features & Types of Companies)
1. Companies Act, 2013 is applicable to________________
a. Whole of India b. Whole of India except to the State of Jammu and Kashmir
c. Whole of India except to the State of Goa and Pondicherry d. Whole of India and outside India
2. Provisions of Companies Act, 2013 are applicable to _____________________
a. Private company only b. Public company only c. Government company only d. All companies
3. Which of the following is features of company?
a. Artificial person b. Separate legal entity c. Limited liability d. All of the above
4. Provisions of Companies Act, 2013 is applicable to_____________
a. Insurance Companies so far as it is not inconsistence with provisions of the Insurance Act, 1938 & IRDA,
1999.
b. Banking Companies so far as it is not inconsistence with provisions of the Banking Regulation Act, 1949.
c. Electricity Companies so far as it is not inconsistence with provisions of the Electricity Act, 2003.
d. All of the above
5. In the famous case of Salomon vs. Salomon & Co. Ltd., it was held that_______
a. Company is at law a different person from its promoters.
b. Company is at law a different person from its directors.
c. Company is at law a different person from its members. d All of the above
6. The shares of a company are transferable in the manner provided in the________ of the company.
a. Share certificate b. Articles of Association c. Memorandum of Association d. Prospectus
7. Invitation to public offering shares or debentures in case of private company is _______
a. Prohibited b. Restricted c. Acceptable d. None of the above
8. Which of the following statement(s) is/are correct?
a. Partnership is a legal person.
b. Partnership firm does not have perpetual succession.
c. Registration of firm is optional. d. Both (b) and (c)
9. Company is not citizen but it has
a. Nationality b. Domicile c. Residential status d. All of the above
10. While calculating maximum number of members (i.e. 200) in case of private company which of the following will
not be included?
a. Employees who are members b. Members + Employees who are members
c. Members d. None of the above
11. In which of the following event, lifting of Corporate veil may be allowed by Court?
a. When company is formed to protect revenue?
b. When company is formed for improper conduct or fraud?
c. Both of the above d. None of the above
12. Which of the following statement(s) is/are not correct?
a. The illegality of an illegal association cannot be cured by subsequent reduction in the number of its members.
b. The illegality of an illegal association can be cured by subsequent reduction in the number of its members.
[Link] association means association have more than 40 members.
d. Both (b) and (c)
13. Company which is created by Special Act of Parliament is known as__________?
a. Chartered company b. Statutory company c. Special company d. Government company
14. Reserve Bank of India, Life Insurance Corporation of India, etc. are examples of types of companies.
a. Chartered company b. Statutory company c. Special company d. Government company

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15. Government Company means any company in which not less than 51% of the paid-up share capital is held by
____________
a. The Central Government b. The State Government(s)
c. Partly by the Central Government and partly by one or more State Governments
d. All of the above
16. Which of the following statement(s) is/are not incorrect?
a. Government Company is neither a Government department nor a Government establishment.
b. Employees of a Government Company are not the employees of the Central or State Government.
c. A Government Company can be wound-up like any other company registered under the Act.
d. All of the above
17. Which of the following statement(s) is/are correct?
a. As per section 19 of Companies Act, 2013, subsidiary company cannot hold any shares into its holding
company either by itself or through its nominee.
b. Holding company can allot or transfer any of its shares to its subsidiary. If transfer is made, it is valid.
C. Both of the above d. None of the above
18. In which of the following situation(s) subsidiary company can hold shares in holding company?
a. It can hold shares as legal representative of deceased member of holding company.
b. It can hold shares as trustee.
c. It has become shareholder before it became a subsidiary company of holding company. d All of the above
19. '_________________, in relation to another company, means a company in which that other company has a
significant influence.
a. Associate company b. Joint venture company c. Subsidiary company d. Holding company
20. ______________ ' is an association which is formed not for making profits but for promotion of commerce, art,
science, religion, charity or any other useful social purpose.
a. Joint venture company b. Private company c. Public company d. Section 8 company
21. Which of the following statement(s) is/are correct in reference to section 8 company?
a. No requirement to use word 'Pvt. Ltd.' or 'Limited' in the name of company.
b. No stamp duty is payable at the time of registration of company.
c. Firm can be member of section 8 Company. d. All of the above
22. Section 8 company cannot _________________.
a. Alter its AOA or MOA without consent of Central Government
b. Pay dividend or distribute its profit among members
c. Both of the above d. None of the above
23. As per Companies Act, 2013, Public Financial Institution means:
a. LIC, IDFC (Infrastructure development finance company limited)
b. Institutions notified by Central Government under Previous Act (Companies Act,1956)
c. Other institution as notified by Central Government in consultation with RBI.
d All of the above
24. As per Companies Act, 2013, institution should not be notified as public financial institution un-
less____________________.
a. It shall be established by Special Act b. Not less than 51% is held by State or Central Government
c. Both of the above d. None of the above
25. Body corporate includes a company incorporated outside India, but does not include________
a. a co-operative society registered under any law relating to co-operative societies.
b. any other body corporate, which the Central Government may, by notification, specify in this behalf.
c. both of the above d. none of the above
26. As per Companies Act, 2013, 'Officer' includes any ______________
a. director b. manager c. key managerial personnel d. all of the above
27. Which of the following statement(s) is/are correct? ______
a. One natural person can incorporate more than one OPC.
b. One natural person can incorporate only one private company.
c. Both of the above d. None of the above
28. Based on the current provisions and limits pre-scribed in the Companies Act, 2013, "Small company" means a
company, other than a public company,
I. paid-up share-capital of which does not exceed Rs._____ ; and
II. turnover of which as latest profit and loss account does not exceed Rs.
a. 10 Crs; 100 Crs b. 50 Crs; 150 Crs c. 50 Lakh; 2 Crs d. 20 Crs; 10 Crs
29. Under Section 2(62) of the Companies Act, "One Person Company" means a company which has only one person
as a________.
a. Customer b. Vendor c. Regulator d. Member

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30. Mr. Ramkumar formed OPC (One Person Company) under the Companies Act, 2013 where he himself, only
person is a member. Mr. Ramkumar's such OPC is a ________ under Section 3(1)(c) of the Act.
a.' Private company b. Limited Liability Partnership
c. Closely held public company d. None of the above
31. Mr. Kamaluddin set up an OPC in Mumbai last year being the only member of the company. He wants to set up
another OPC in Delhi as he is planning to start another business. Can he set up another OPC under the Companies
Act, 2013?
a. Yes. A natural person can set up as many OPC as and wherever he wants.
b. Yes. A natural person can set up in the same city as the first OPC.
c. No. A natural person can form only one OPC.
d. No. A natural person cannot set up an OPC within a span of 5 years from the incorporation of his first OPC.
32. In a Guarantee Company, the ____________agrees to contribute to assets of the company if it is being wound up
upto prescribed amount. Such company may or may not have a share capital. Generally, such companies are
formed for non-profit purposes only.
a. Government b. Member c. Parliament d. Bank or Financial Institute
33. According to Section 3 of Companies Act, 2013, a Guarantee Company can be _______
a. Public Company b. Private Company c. One Person Company d Any of the (a), (b) or (c)
34. According to Section 2(45) of the Companies Act, 2013, means any company in which not less than fifty-one per
cent of the paid-up share capital is held by the Central Government, or by any State Government or Governments,
or partly by the Central Government and partly by one or more State Governments, and includes a company which
is a subsidiary company of such a Government company.
a. State Company b. Company formed by Parliamentary Act
c. Government Company d. Domestic Company
35. Which Section of the Companies Act, 2013 defines the Government Company?
a. Sec. 2(43) b. Sec. 2(45) c. Sec. 2(47) d. Sec. 2(51)
36. Many Government companies are formed as private companies with two shareholders - one President/ Governor
and other nominee of Central/State Government who is usually Secretary of the administrative ministry. Only one
share is held by nominee. It is held jointly with Government of India. Balance all shares are held by Government.
However, such company can put the name as 'Limited' instead of 'Private Limited'. No permission or resolution is
necessary to delete the words 'Private' from the name of a Government company.
a. True
b. False. No such companies can be formed under the provisions of Companies Act, 2013. The entire paragraph is
incorrect.
c. False. Such companies can be formed under the provisions of Companies Act, 2013. However, it cannot put the
name as 'Limited' instead of 'Private Limited'.
d. False. Such companies can be formed under the provisions of Companies Act, 2013. However, it cannot put the
name as 'Limited' instead of 'Private Limited'. However, an express permission of Parliament and a special
resolution is necessary to delete the words 'Private' from the name of a Government company.
37. Which Section of the Companies Act, 2013 defines 'Foreign Company'?
a. Sec. 2(32) b. Sec. 2(40) c. Sec. 2(42) d. Sec. 2(55) ,
38. Under Section 2(42) of the Companies Act, 2013, "____________” means any company or body corporate
incorporated outside India which, (a) has a place of business in India whether by themselves or through an agent,
physically or through electronic mode, or (b) conducts any business activity in India in any other manner.
a. Franchisee b. Foreign Company c. International Company d. Foreign Private Issuer
39. Which of the following companies are considered to have carried out business in India according to the provisions
of the Companies Act, 2013? Every company including foreign company which carries out its business through
electronic mode, whether its main server is installed in India or outside India; which
i. undertake,* business to business and business to consumer transactions, data interchange ; or other digital
supply transactions
ii. offers to accept deposits or invites deposits ; or accepts deposits or subscriptions in securities, in India or
from citizens of India
iii. undertakes financial settlements, web-based marketing, advisory and transactional services, database
services or products, supply chain management
iv. offers online services such as telemarketing, telecommuting, telemedicine, education and information
research
v. undertakes any other related data communication services, whether conducted by e-mail, mobile devices,
social media, cloud computing, document management, voice or data transmission
vi. a. i to v - all b. 1, ii and v c. i and v d i, iii, iv and v
40. Metallurgic soft Inc. is incorporated in Italy, however, nearly 72% of its shares are held by Indian Companies and
some Indian citizens. This company is required to comply with the provisions relating to under the Companies
Act, 2013.
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a. Non-Profit Company b. Domestic Company c. Unlimited Company d. Foreign Company
41. Minimum number of members in case of public company is _________.
a. 1 b. 2 c. 5 d7
42. Minimum number of members in case of private company is
a. 1 b. 2 c. 3 d7
43. Maximum number of members in case of private company is
a. 200 b. 100 c. 150 d. 50
44. Maximum number of members in case of public company is___________
a. 0 b. No limit c. 50 d. 100
45. Liability of a member in case of a private company is_______
a. Limited b. Unlimited
c. Limited for shares held and unlimited for other matters d None of the above
46. What is liability of members, if company is limited by guarantee and not having share capital?
a. Unpaid value of shares b. Guarantee amount c. Unlimited liability d. None of the above
47. What is liability of members, if company is limited by shares?
a. Unpaid value of shares b. Guarantee amount c. Unlimited liability d. None of the above
48. A company is considered as Government company, if Government holds ________% of paid up share capital.
a more than 25 b. more than 30 c. more than 40 d. more than 50
49. While calculating maximum number of members (i.e. 200) in case of private company which of the following will
not be included?
a. Employees who are members b. Members + Employees who are members
c. Members d None of the above
50. Invitation to public offering shares or debentures in case of private company is_________
a. Prohibited b. Restricted c. Acceptable [Link] of the above

CHAPTER -1- Preliminary (Definitions, Features & Types of Companies)

1. A 2. D 3. D 4. D 5. D 6. B 7. A 8. D 9. D 10. B
11. C 12. D 13. B 14. B 15. D 16. D 17. A 18. D 19. A 20. D
21. D 22. C 23. D 24. C 25. C 26. D 27. D 28. C 29. D 30. A
31. C 32. B 33. D 34. C 35. B 36. A 37. C 38. B 39. A 40. D
41. D 42. B 43. A 44. B 45. A 46. B 47. A 48. D 49. A 50. A

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -2
PART A
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INCORPORATION OF COMPANY
MCQ:-
Incorporation
1. Promoter' means a person ___________
a. Who has control over affair of company, directly or indirectly whether shareholder, director or otherwise?
b. In accordance with whose advice, directions or instructions the Board is accustomed to act.
c. Either (a) or (b) d Neither (a) nor (b)
2. `Promoter' means a person___________
a. Who is named in prospectus as promoter? b. Who is named in annual return as promoter?
c. Both of the above d. None of the above
3. A promoter can be ____________.
a. an individual b. firm c. an association of persons d. all of the above
4. Promoters of company are _______________
a. An agent of company b. A trustee c. An employee d None of the above
5. Which of the following statement(s) is/are correct?
a. Promoter must not make an unfair use of his position.
b. The promoters must make a fair and reasonable use of his powers and position.
c. Both of the above d None of the above
6. The promoter stands in a fiduciary position to the company for any profit secretly made. He is liable to the
company. The company can __________
a. Cancel the contract and recover the purchase price where he sold his own property to the company.
b. Sue the promoter for the amount or profit and recover the same with interest.
c. Claim damages for breach of fiduciary duties. d. Either (a) or (b) or (c)
7. If promoters make false promises or statement and induce person _______________he is liable for punishment for
fraud under section 447.
a. to invest money b. to enter into underwriting agreement
c. to obtain credit facilities d. either (a) or (b) or (c)
8. Which of the following are effects of Certificate of Incorporation granted by ROC?
a. The company is incorporated on the date as mentioned in Certificate of Incorporation.
b. Subscribers to the Memorandum become members of the company.
c. Company becomes a body corporate having perpetual succession and common seal, with power to acquire, hold
and dispose of property, and to sue and be sued in the name of company.
d All of the above
9. Which of the following statement(s) is/are correct?
a. Certificate of Incorporation does not mean all objects of company are legal.
b. Certificate of Incorporation is not conclusive evidence.
c. Both of the above d. None of the above
10. Application of NCLT shall be obtained for_____________
a. Conversion of private company into public company b. Conversion of public company into private company
c. Both of the above d. None of the above
11. The Central Government can revoke license granted to section 8 company if
a. It contravenes any terms and conditions of license.
b. Affairs of company are conducted with fraudulent objective or prejudicial to public interest.
c. Either (a) or (b) d. Neither (a) nor (b)
12. On revocation of license of section 8 company, Central Government may direct_________
a. To convert it status and change its name. b. To wind up company if it is necessary in public interest.
c. To amalgamate with any other section 8 company or company with similar object in public interest.
d. Either (a) or (b) or (c)
13. Which of the following form shall be filed when nominee gives consent in case of OPC?
a. Form INC-1 b. Form INC-2 c. Form INC-3 d. Form INC-4
14. Which of the following form shall be filed when there is change in member of OPC?
a. Form INC-1 b. Form INC-2 c. Form INC-3 d. Form INC-4
15. Which of the following form shall be filed when there is change in nominee in case of OPC?
a. Form INC-1 b. Form INC-2 c. Form INC-3 d. Form INC-4
16. Which of the following statement(s) is/are correct?
a. Persons acting in professional capacity are not regarded as promoters.
b. Person who provides loan to company to start its business cannot be regarded as promoter.
c. Both of the above d. None of the above
17. Which of the following is incorrect with reference to conversion of one type of company into other type of
company?
a. Private company can be converted into OPC. b. Section 8 company can be converted into OPC.
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c. OPC can be converted into private company. d. Both (b) and (c)
18. Which of the following is correct with reference to conversion of one type of company into other type of
company?
a. Section 8 company into private company b. Company limited by guarantee into company limited by shares
c. Both of the above d. None of the above
19. One Person Company is required to give intimation when it crosses threshold in terms of _________________.
a. Share Capital of Rs. 50 lakhs
b. Average annual Turnover during three preceding financial years of Rs. 2 crores
c. Either (a) or (b) d. Both (a) and (b)
20. Certificate of Incorporation is issued by Registrar of Companies in__________________.
a. Form INC 12 b. Form INC 7 c. Form INC 11 d. Form INC 8
21. To convert section 8 company into company of any other kind as per Rule 21-22 of Companies (In-corporation)
Rules, 2014, application shall be made by company to
a. Registrar of Companies b. Regional Director c. Central Government
d. Chief Secretary of State where company is having registered office
22. To convert section 8 company into company of any other kind as per Rules 21-22 of Companies (Incorporation)
Rules, 2014, application shall be made by company to Regional Director (RD) in Form INC 18. Copy of
application made to RD shall be send to Commissioner of Income tax, Charity Commissioner and Chief Secretary
of State where registered office of company is situated. These authorities can make representation to RD within
a. 30 days b. 45 days c. 60 days d. 90 days
23. To convert section 8 company into company of any other kind as per Rules 21-22 of Companies In-corporation)
Rules, 2014, application shall be made by company to Regional Director (RD) in Form INC 18. Within one week
from submitting an application to RD, publish notice in Form INC 19 in newspapers. Copy of published notice in
newspapers shall be sub-mitted to _____________
a. Central Government b. Chief Secretary of State where registered office of company is situated
c. All members d. Regional Director
24. At the time of incorporation of company, a declara-tion is given by the is given.
a. Subscriber of MOA b. Subscriber of AOA c. First directors d. All of the above
25. After incorporation of company, if it is found that false or incorrect particulars were submitted or material
information was suppressed at the time of incorporation of company, NCLT may on application pass order:
a. To direct regularisation b. To remove name of company from register
c. Either (a) or (b) d. Neither (a) nor (b)
26. After incorporation of company, if it is found that false or incorrect particulars were submitted or material
information was suppressed at the time of incorporation of company, NCLT may on application pass order:
a. To order winding up b. Pass such other order as it deems fit
c. Either (a) or (b) d. Neither (a) nor (b)
27. OPC can be converted into__________
a. Public company b. Private company c. Partnership firm d. Either (a) or (b)
28. OPC can be converted into public or private company
a. Compulsorily b. Voluntary c. Only on order of Court d. Either (a) or (b)
29. Which of the following is correct about selection and application of name under Companies Act, 2013?
a. Name should be identical or should not too nearly resemble the name of another registered company.
b. Name indicating any connection or patronage of Government cannot be used without prior approval of Central
Government.
c. Name suggesting lawful activity is not permissible. d. All of the above
30. Which of the following is correct about selection of name for incorporation of company under Companies Act,
2013?
a. Proposed name will not be approved if it includes any word which is offensive to any section of the people.
b. Proposed name may be identical with another LLP
c. Both of the above d. None of the above
31. Which of the following is correct about selection of name for incorporation of company under Companies Act,
2013?
a. Abbreviated name will be allowed, if it is not violative of provisions of Intellectual Property Rights (IPR)
b. Name of national hero is allowed c. Both of the above d None of the above

32. To incorporate section 8 company and to obtain license, an applicant is required to submit estimate of future
annual income and expenditure for next ________ along with application.
a. One year b. Two years c. Three years d. Five years
33. A company registered under section 8 of Companies Act, 2013 can convert itself in other kind of company, after
passing in general meeting and filing application in
a. Ordinary resolution; Form INC 17 b. Ordinary resolution; Form INC 18
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c. Special resolution; Form INC 17 d. Special resolution; Form INC 18
34. A company registered under section 8 of Companies Act, 2013 can convert itself in other kind of company, after
passing special resolution in general meeting and filing application in Form INC 18 to
a. Registrar of Companies b. Regional Director c. State Government d. Charity Commissioner
35. Section 8 company cannot alter its Memorandum or Articles without approval of __________
a. All directors b. Central Government c State Government d Charity Commissioner
36. As per section 12 of Companies Act, 2013, shall be painted or affixed on the outside of every office or place in
which business of company is carried on.
a. Name of its registered office b. Address of its registered office
c. Name & address of its registered office d. Name & address of its registered office with authorized capital
37. As per section 12 of Companies Act, 2013, which of the following details shall be printed on company's business
letters, bill heads, letter papers and in all its notices and official publications?
a. Name, address of registered office b. CIN c. Both of the above d. None of the above
38. As per section 12 of Companies Act, 2013, which of the following details shall be printed on company's business
letters, bill heads, letter papers and in all its notices and official publications?
a. Telephone number, fax and e-mail b. Website addresses c. Both of the above d. None of the above
39. The memorandum and articles of association of the company shall be signed by each subscriber to the
memorandum, who shall add his , if any.
a. Name and address b. Name, address and disability
c. Name, address and occupation d. Name, address and ability
40. What is most appropriate requirement with reference to Memorandum of Association of company at the time of
incorporation of company?
a. Name, address and description of subscribers and witnesses can be typed or printed.
b. Digital signature should be affixed. c. Both of the above d. None of the above

CHAPTER -2 PART A - INCORPORATION OF COMPANY

1. C 2. C 3. D 4. D 5. C 6. D 7. D 8. D 9. C 10. B
11. C 12. D 13. C 14. D 15. D 16. C 17. B 18. C 19. C 20. C
21. B 22. C 23. D 24. A 25. C 26. C 27. D 28. D 29. B 30. A
31. A 32. C 33. D 34. B 35. B 36. C 37. C 38. C 39. C 40. C

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -2 -PART -B
MATTERS INCIDENTAL TO INCORPORATION (MOA & AOA)

1. The Memorandum of Association must be__________

a. printed and divided into paragraphs b. paragraph numbered consecutively
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c. signed by each subscriber in the presence of at least one witness who shall attest the signature.
d. all of the above
2. Generally, jurisdiction of High Court, Company Court, Registrar of Companies and Regional Director is decided
on basis of ________________
a. Resolution passed by company b. Registered office of the company
c. Agreement entered into between Board and its members [Link] of the above
3. Which information regarding capital shall be stated in capital clause of Memorandum of Association of company?
a. Nominal capital - Number of shares and nominal value of shares
b. Subscribed capital - Number of shares and nominal value of shares
c. Nominal capital - Number of shares, types of shares and nominal value of shares
d. Authorized capital and total number of shares
4. Who cannot be subscriber of Memorandum of Association?
a. Company b. Minor c. Major d. All of the above
5. Who can be subscriber of Memorandum of Association?
a. LLP b. Government of India c. Both of the above d. None of the above
6. As per Section 13 of Companies Act, 2013, the approval of Central Government for change of name shall be filed
with ___________
a. Stock Exchange b. ROC c. Regional Director d. Tribunal
7. As per Section 13 of Companies Act, 2013, name of company can be changed by shareholders any time
by_______ and_______________.
a. Passing ordinary resolution; getting approval of Central Government
b. Passing special resolution; getting approval of Central Government
c. Getting approval of Central Government; by passing ordinary resolution
d. Passing ordinary resolution; getting written consent of creditors
8. Permission of Central Government is not necessary for merely_____________
a. Addition of word 'private' in the name of company on conversion of public company into private company
b. Deletion of word `private' in the name of company on conversion of private company into public company
c. Either (a) or (b) d. Neither (a) nor (b)
9. Company can alter name clause of its Memorandum due to __________
a. Change of name is agreed by shareholders as per section 13 of Companies Act, 2013
b. Change of name pursuant to order of Central Government as per section 16 of Companies Act, 2013
c. Both of the above d. None of the above
10. It may happen that through inadvertence or other-wise, a company may be registered with a name which in the
opinion of Central Government, is identical with or closely resembles the name of an existing company. In such
case, Central Government can direct the company to change the name, within _________from issue of such
directions.
a. One month b. Two months c. Three months d. Reasonable time
11. As per section 16 of Companies Act, 2013, a _________ of a trade mark may apply to Central Government stating
that name of a registered company is identical with or nearly resembles his registered trade mark.
a. Proprietor b. Registered proprietor c. Both of the above d None of the above
12. As per section 12 of Companies Act, 2013, change of Registered office from one premise to another within same
city, town or village can be made by
a. Passing a resolution by Board of Directors b. Notice of change has to be filed with ROC
c. Either (a) or (b) d. Both (a) and (b)
13. As per Rule 29 of Companies (Incorporation) Rules, 2014, change in name is not allowed, if company has
defaulted in _________
a. Filing its Annual Returns or Financial Statements b. Document due for filing with ROC
c. Repayment of due deposit or debenture or interest thereon d. All of the above
14. Which of the following statement(s) is/are incorrect?
a. Change in name of company will affect rights or liability of company or its member.
b. Change in name will not render any legal proceeding defective by or against it.
c. Both of the above d. None of the above
15. Company which has unutilized money from initial public offer (IPO) cannot change object without giving exit
offer to______________ in addition to compliance with above provisions.
a. Consenting shareholders b. Consenting creditors c. Dissenting shareholders d. Dissenting creditors
16. Subscription clause of Memorandum of Association shall contain_____________
a. names of subscribers b. addresses of creditors c. occupation of creditors d. all of the above
17. The doctrine of ultra vires was first applied in case of
a. Ashbury Railway Carriage Co. vs. Riche b. Lee vs. Lee Air Farming Ltd
c. National Telephone Co. vs. St. Peter Constables
d. Madhav Ram Chandra Kamath vs. Canara Banking Corporation.
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BADALA CLASSES CA-INTERMEDIATE
18. Which of the following statement(s) is/are not correct?
a. Articles is superior than Memorandum of the company.
b. The Memorandum lays down what is to be done and Articles lay down how it is to be done.
c. Both of the above d. None of the above
19. It is not obligatory for _________to have its own Articles.
a. unlimited company b. public company limited by shares
c. section 8 company d. private company
20. Any alteration to Articles of Association shall not be____________
a. Against Companies Act b. Illegal c. Against public policy d. All of the above
21. Any alteration to Articles of Association shall be __________
a. Bona fide b. Ultra vires to Memorandum c. Constituting fraud on minority d. All of the above
22. Which of the following statement(s) is /are correct?
a. Every member of the company is bound to observe the provisions of the Memorandum and the Articles as if
each member had signed the same.
b. A company can sue its members for the enforcement of these provisions and the members may also be
restrained by Court from committing the breach of provisions of these documents.
c. Both of the above d. None of the above
23. Every person dealing with the company must inspect MOA-AOA and make sure that his contract is in conformity
with their provisions. Whether he actually reads them or not, he is presumed to have read and understood them.
This deemed knowledge of MOA and AOA and their contents is known as
a. Doctrine of Indoor Management b. Doctrine of Constructive Notice
c. Doctrine of Ultra vires d. Doctrine of Substance
24. Which doctrine is an exception to Doctrine of Constructive Notice?
a. doctrine of indoor management b. doctrine of constructive management
c. both of the above d. none of the above
25. Which doctrine was decided in case of Royal British Bank vs. Tarquand?
a. Doctrine of Indoor Management b. Doctrine of Constructive Notice
c. Doctrine of Ultra vires d. Doctrine of Substance
26. What company shall do to change corporate office of company from one city to another?
a. Pass Board resolution b. Pass ordinary resolution c. Pass special resolution d. Both (a) and (c)
27. As per section 12 of Companies Act, 2013, change of Registered office from one premise to another within same
city, town or village can be made by passing a resolution by Board of Directors. Notice of change has to be filed
with ROC within__________ of change, with prescribed fees.
a. 7 days b. 15 days c. 30 days d. 60 days
28. Notice of change in registered office should be filed in
a. Form INC 22 b. Form INC 23 c. Form INC 25 d. Form INC 26
29. Company can change its registered office from one town, city or village to another town, city or village in the
same State by___________
a. Passing an ordinary resolution at general meeting of members
b. Passing a special resolution at general meeting of members
c. Passing a board resolution at board meeting only d. Obtaining permission of Central Government
30. In which of the following case, change in Memorandum of Association will take place?
a. Shifting of registered office from one place to another place within same city
b. Shifting of registered office from one city to another city within same district
c. Shifting of registered office from one city to another city within same State d. None of the above
31. Application for change of registered office from jurisdiction of one ROC to another within same State should be
made to _____________
a. Chief Secretary of State b. State Government c. Regional Director d. None of the above
32. In case of shifting of registered office from one State to another State, an application to Regional Director shall be
made in Form INC 23 with details of creditors and debenture-holders with name, address and amounts shall be
submitted. The list should be accompanied by affidavit signed by _________that the list is correct.
a. Two directors out of one shall be managing director b. Company secretary and director
c. Company secretary and managing director d. Company secretary and two directors
33. As per Section 13 of Companies Act, 2013, before granting approval for change of registered office from one
State to other, the Central Government may satisfy itself that the alteration has the consent of the
______concerned with the company.
a. Tax department, creditor and other persons b. Creditor and debenture-holders
c. Creditor, debenture-holders and other persons d. Creditor and debenture-trustee
34. As per Section 13 of Companies Act, 2013, before granting approval for change of registered office from one
State to other, the Central Government may satisfy itself that:
a. the sufficient provision has been made by the company for the due discharge of all its debts and obligations.
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BADALA CLASSES CA-INTERMEDIATE
b. the adequate security has been provided by the company for discharge of all its debts and obligations.
c. either (a) or (b) d. neither (a) nor (b)
35. At the time of granting permission for shifting of registered office from one State to another, Central Government
will consider interests of ______________
a. Members b. Creditors c. Company d. All of the above
36. On which of following ground, shifting of registered office from one State to another State can be refused?
a. Loss of revenue to State Government
b. Majority of shareholders are not residing in State where it is proposed to shift registered office
c. Both of the above d. None of the above
37. As per Section 13 of Companies Act, 2013, change in object clause can be effected by:
a. Passing Board resolution b. Passing a special resolution in general meeting of members
c. Passing an ordinary resolution in general meeting of members
d. Passing an ordinary resolution and with permission of Central Government
38. Which of the following statement(s) is/are incorrect with reference to change in capital clause of Memorandum of
Association?
a. It can be altered if there is a provision in Articles of Association.
b. Authorised capital can be increased by any amount as company thinks fit.
c. Both of the above d. None of the above
39. Identify incorrect statement:
a. Increase, consolidation or division of shares can be done by Ordinary Resolution and with confirmation from
NCLT
b. Reduction in 'Capital is allowed by Special Resolution and confirmation from NCLT
c. Both of the above d. None of the above
40. Model Forms of Articles have been specified in __________ of Companies Act, 2013.
a. Schedule I b. Schedule II c. Schedule III d. Schedule IV
41. If existing company wants to commence any business other than stated under 'object' clause of Memorandum of
Association, it has to obtain__________
a. Prior permission of shareholders by way of Special Resolution
b. prior permission of shareholders by way of Ordinary Resolution
c. Permission of shareholders by way of Special Resolution
d. Permission of shareholders and Government by way of Ordinary Resolution
42. As per Companies Act, 2013,_________________ is model form of Articles for company limited shares
a. Table F b. Table G c. Table H d. Table I
43. As per Companies Act, 2013,________is model form of Articles for company limited by guarantee and having
share capital
a. Table F b. Table G c. Table H d. Table I
44. As per Companies Act, 2013, ___________is model form of Articles for company limited by guarantee and not
having share capital
a. Table J b. Table G c. Table H d. Table I
45. As per Companies Act, 2013, is model form of Articles for unlimited company having share capital
a. Table J b. Table G c. Table H d. Table I
46. As per Companies Act, 2013, __________is model form of Articles for unlimited company not having share
capital
a. Table J b. Table G c. Table H d. Table I
47. Classic Private Ltd. desires to include entrenchment provision by amending its Article. It can be done, if
a. It is agreed to by all members b. It is agreed to by majority of members
c. It is agreed to by 3/4th of members d. It is agreed by all directors
48. Classic Public Ltd. desires to include entrenchment provision by amending its Article. It can be done, if
a. Ordinary resolution is passed at members' meeting
b. Special resolution is passed at members' meeting
c. It is ordered by inspector after inspection
d. Company re-register its articles of association
49. Provisions of entrenchment can be made at_______________
a. the time of formation of company b. any time after formation of company
c. either (a) or (b) d. neither (a) nor (b)
50. Memorandum of Company limited by guarantee and not having a share capital is required to be as per
Table______ of Schedule_________ of Companies Act, 2013.
a. A; III b. B; I c. C; IV d. H; V
51. Memorandum of Company limited by guarantee and having a share capital shall be as per Table ______of
Schedule ___________of Companies Act, 2013.
a. G; I b. C; I c. B; I d. H; I
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CHAPTER -2 PART B – MATTERS INCIDENTAL TO INCORPORATION (MOA & AOA)

1. D 2. B 3. A 4. B 5. C 6. B 7. B 8. C 9. C 10. C
11. B 12. D 13. D 14. A 15. C 16. A 17. A 18. A 19. B 20. D
21. A 22. C 23. B 24. A 25. A 26. A 27. C 28. A 29. B 30. D
31. C 32. D 33. C 34. C 35. D 36. D 37. B 38. D 39. A 40. A
41. A 42. A 43. B 44. C 45. D 46. A 47. A 48. B 49. C 50. B
51. B

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -3 PROSPECTUS

1. Which of the following is/are included within meaning of prospectus as per Section 2(70) of the Companies
Act, 2013?
a. Any document described prospectus b. Red herring prospectus
c. Shelf prospectus referred d. All of the above
2. Prospectus invites an application from public to subscribe _______
a. Shares b. Debentures c. Securities d. Either (a) or (b) or (c)
3. Prospectus invites an application from public to subscribe shares or securities of __________
a. LLP b. One person company c. Body corporate d. Private company
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4. Which of the following ingredients constitute a prospectus?
a. There must be an invitation to the promoters to subscribe shares.
b. The invitation to subscribe shares must be made by or on behalf of the company or in relation to an
intended company.
c. Both of the above d. None of the above
5. In which of the following situation(s) prospectus is not required to be issued?
a. Issue of shares by private company.
[Link] of shares or debentures by public company through private placement.
c. Bona fide invitation to a person to enter in an underwriting agreement. d. All of the above
6. As per Section 42(2), "private placement" means any offer of securities or invitation to subscribe securities
to a select group of persons by a company through issue of________
a. Private placement offer-cum-application letter b. Public placement offer letter
c. Placement offer letter d. Advertisement in newspaper
7. The company has to issue private placement offer-cum-application letter in_________.
a. Form PAS-2 b. Form PAS-3 c. Form PAS-4 d. Form PAS-5
8. Private placement offer shall be made to persons in the aggregate in a financial year.
a. Not more than 50 b. Not more than 100 c. More than 200 d. Not more than 200
9. Disclosures of sources of promoter's contribution have to be made in the_________
a. Articles of Association b. Prospectus c. INC-32 (SPICe) d. Memorandum of Association
10. Private company may issue securities _____________
a. By way of rights issue b. By way of bonus issue c. Through private placement d Either (a) or (b) or (c)
11. Private placement offer or invitation shall be made to not more than two hundred persons in the aggregate in a
financial year. However, any offer or invitation made to _______ shall not be considered while calculating the
limit of two hundred persons.
a. Qualified institutional buyers
b. Employees of the company under a scheme of employees' stock option as per section 62
c.- Both of the above d. None of the above
12. Rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014 states that a company shall not
make a private placement of its securities unless the proposed offer of securities or invitation to subscribe
securities has been previously approved by the share-holders of the company, by _____________
a. Special resolution b. Ordinary resolution
c. Circular resolution d. Special resolution and approval of Central Government
13. According to Section 42 of Companies Act, 2013 all monies payable towards subscription of securities under
private placement offer shall be paid through_______________.
a. Cheque b. Demand draft c. Other banking channels d. Either (a) or (b) or (c)
14. Section 42(6) of Companies Act, 2013 states that a company making an offer or invitation under this section
shall allot its securities within ________ days from the date of receipt of the application money for such
securities.
a. 15 b. 30 c. 45 d 60
15. Section 42(6) of Companies Act, 2013 states that a company making an offer or invitation under this section
shall allot its securities within 60 days from the date of receipt of the application money for such securities
and if the company is not able to allot the securities within that period, it shall repay the application money to
the subscribers within ____________.
a. 15 days from the date of completion of 60 days b. 10 days from the date of completion of 60 days
c. 15 days from the date of completion of 60 days from announcement of private placement
d. 15 days from the date of completion of 60 days from passing of resolution for private placement
16. Section 42(6) of Companies' Act, 2013 states that a company making an offer or invitation under this section
shall allot its securities within 60 days from the date of receipt of the application money for such securities
and if the company is not able to allot the securities within that period, it shall repay the application money to
the subscribers within fifteen days from the date of completion of sixty days and if the company fails to repay
the application money within the aforesaid period, it shall be liable to repay that money with interest at the
rate of _______________
a. 12% per month b. 12% per annum c. 15% per annum d.12% per quarter
17. As per Section 42(6) of Companies Act, 2013, monies received on application under private placement offer
shall be kept in
a. Company's bank account in a scheduled bank b. Separate bank account in a scheduled bank
c. Bank account as prescribed by Registrar d. Separate bank account in any bank
18. A private placement offer letter shall be accompanied by an application form serially numbered and addressed
specifically to the person to whom the offer is made and shall be sent to him,
a. In writing b. In electronic mode c. Either (a) or (b) d. Neither (a) nor (b)

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19. A private placement offer letter shall be accompanied by an application form serially numbered and addressed
specifically to the person to whom the offer is made and shall be sent to him, either in writing_____ or in
electronic mode, within of recording the names of such persons in accordance with section 42 of Companies
Act, 2013.
a. A month b. 30 days c. 45 days d. 60 days
20. A return of allotment of securities under section 42 of Companies Act, 2013 shall be filed with the Registrar
within thirty days of allotment in
a. Form PAS-2 b. Form PAS-3 c. Form PAS-4 d. Form PAS-5
21. Company shall maintain a complete record of private placement offers in___________.
a. Form PAS . b. Form PAS-3 c. Form PAS-4 d. Form PAS-5
22. Which of the following statement is incorrect with reference to provisions of prospectus under Companies
Act, 2013?
a. Prospectus to be delivered to the Registrar before its publication.
b. Prospectus to be issued within 90 days after the date on which a copy thereof is delivered to the Registrar.
c. Prospectus issued shall not include a statement purporting to be made by an expert unless the expert is a
person who is not, and has not been, engaged or interested in the formation or promotion or management.
d. None of the above
23. Which of the following statement is correct with reference to provisions of prospectus under Companies Act,
2013?
a. Prospectus shall be dated and not required to be signed.
b. Prospectus filed with ROC is valid for 90 days from the date of filing.
c. Prospectus filed with ROC is valid for 60 days from the date of filing.
d. Prospectus filed with ROC is valid for 90 days from the date of approval in Board meeting.
24. __________________means a prospectus in respect of which the securities or class of securities included
therein are issued for subscription in one or more issues over a certain period without the issue of a further
prospectus.
a. Deemed prospectus b. Red-herring prospectus c. Shelf prospectus d. Offer for sale document
25. ________________to be filed before the issue of a second or subsequent offer of securities under the shelf
prospectus
a. Information Memorandum b. Offer for sale document c. Advertisement d. Abridged prospectus
26. Rule 10 of Companies (Prospectus and Allotment of Securities) Rules, 2014 states that the information
memorandum shall be prepared in Form PAS-2 and filed with the Registrar along with the fee as provided in
the Companies (Registration Offices and Fees) Rules, 2014 within_________ prior to the issue of a second or
subsequent offer of securities under the shelf prospectus.
a. One month b. Two months c. Three months d. 15 days
27. In the case of deemed prospectus, issue house makes an offer for sale of securities within____after the
securities were allotted to them or agreed to be allotted to them.
a. 3 months b. 1 month c. 6 months d. 9 months
28. Which of the following additional information deemed prospectus shall contain?
a. The net amount of consideration received by company in respect of securities.
b. The time and place where contract entered into between company and Issue House may be inspected.
c. Both of the above d. None of the above
29. Deemed prospectus shall be signed by ___________ if offer is made by company.
a. Majority of directors b. Two directors c. All directors d. 3 /4th of total number of directors
30. Deemed prospectus shall be signed by ______ if offer is made by firm.
a. not less than 1/2 of the partners b. all partners c. any two partners d. 3 /4th of total number of partners
31. The Registrar shall not register prospectus unless______________
a. Requirements of the Act are complied with.
b. Consent in writing is obtained from all persons whose name are included in it.
c. Both of the above d. None of the above
32. Prospectus must be signed by every person who is named therein as _______of the company.
a. Director b. Proposed director c. Either (a) or (b) d. Neither (a) nor (b)
33. The prospectus must be issued within_____days after the date on which a copy thereof has been de-livered for
registration to ROC.
a. 15 b. 30 c. 60 d. 90
34. In the case of prospectus, expert should be unconnected with the_____________________.
a. incorporation of the company b. management of the company
c. either (a) or (b) d. neither (a) nor (b)
35. If prospectus is issued by company includes expert's statement, it shall include following statement
that______

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BADALA CLASSES CA-INTERMEDIATE
a. He is not, and has not been engaged or interested in the formation or promotion or management of
company.
b. He has given his consent to issue prospectus and not withdrawn such consent.
c. Both of the above d. None of the above
36. Company shall ___________ to vary terms of prospectus or object for which prospectus is issued.
a. Pass ordinary resolution b. Pass special resolution
c. Obtain permission of Central Government d. Both (b) and (c)
37. ___________means a prospectus, which does not include complete particulars of the quantum or price of the
securities included therein.
a. Deemed prospectus b. Red-herring prospectus c. Shelf prospectus d. Offer for sale document
38. A company proposing to issue a ___________ shall file it with the Registrar at least three days prior to the
opening of the subscription list and the offer.
a. Deemed prospectus b. Red-herring prospectus c. Shelf prospectus d. Offer for sale document
39. Which of the following statement(s) is/are correct with reference to provisions of prospectus under Companies
Act, 2013?
a. Red herring prospectus is issued during book building process.
b. Red herring prospectus contains either the floor price of securities offered or a price band along with the
range within which the Bids can move.
c. Both of the above d. None of the above
40. ____________means a memorandum containing such salient features of a prospectus as may be specified by
the Securities and Exchange Board by making regulations in this behalf.
a. Deemed prospectus b. Shelf prospectus c. Abridged prospectus d. Offer for sale document
41. Shelf Prospectus is valid for period of ___________
a. 6 months b. 1 year c. 2 years d. 3 years
42. Which of the following statement(s) is/are incorrect?
a. RHP may be issued by company before issue of prospectus.
b. RHP may give a band or minimum figure of issue size and issue price.
c. Both of the above d. None of the above
43. Red herring prospectus (RHP) should be filed with ROC at least_______ before opening of subscription list
and offer.
a. 2 days b. 3 days c. 5 days d. 10 days
44. Which of the following statement(s) is / are example of misstatement in prospectus?
a. Statement in prospectus that share capital has been subscribed when it has only been allotted in fully paid
shares to company's contractor.
b. Statement that two leading businessmen of repute have agreed to become directors of company when they
had only expressed their willingness to help the company.
c. Both of the above d. None of the above
45. Who are liable to compensate loss suffered due to wrong statement or misstatement in prospectus?
a. Company b. Director of the company at the time of issue of prospectus
c. Either (a) or (b) d Neither (a) nor (b)
46. Who are liable to compensate loss suffered due to wrong statement or misstatement in prospectus?
a. Person who has agreed to become director of company at the time of issue of prospectus
b. Promoters of company
c. Either (a) or (b) d. Neither (a) nor (b)
47. Where an untrue statement occurs in a prospectus, there may arise_______
a. Civil liability b. Criminal liability c. Either (a) or (b) d. Neither (a) nor (b)
48. A person who subscribed for shares on the faith of a false prospectus may claim from_________
compensation under Section 35 of the Companies Act, 2013.
a. Directors b. Promoters c. Either (a) or (b) d. Neither (a) nor (b)
49. Which of the possible action or claim is available to a person who acted upon the false prospectus?
a. Damages for fraudulent misrepresentation
b. Compensation for untrue statement
c. Damages for non-compliance with the requirements of section 26 of the Act
d. All of the above
50. Which of the following statement(s) is/are incorrect with reference to provisions of prospectus under
Companies Act, 2013?
a. The right to claim compensation for any loss or damage sustained by reason of any untrue statement in a
prospectus is available to any person who has purchased securities on the faith of the prospectus containing
untrue statement.

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BADALA CLASSES CA-INTERMEDIATE
b. Penalty is also livable under the Companies Act, 2013 for fraudulently inducing a person to invest money.
c. Impersonation for the acquisition of securities has been made an offence under the Companies Act,
punishable with imprisonment. d None of the above

CHAPTER -3 PROSPECTUS
1. D 2. D 3. C 4. B 5. D 6. A 7. C 8. D 9. B 10. D
11. C 12. A 13. D 14. D 15. A 16. B 17. B 18. C 19. B 20. B
21. D 22. D 23. B 24. C 25. A 26. A 27. C 28. C 29. B 30. A
31. C 32. C 33. D 34. C 35. C 36. B 37. B 38. B 39. C 40. C
41. B 42. D 43. B 44. C 45. C 46. C 47. C 48. C 49. D 50. A

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -4 (A) Share Capital (Allotment of share, capital & Alteration of Capital)
1. 'Equity shares' can never be repaid, except_________
a. In case of buy back of shares b. When there is an approved scheme of reduction of capital
c. Liquidation d. All of the above
2. _______________`nominal capital' means such capital as is authorised by the memorandum of a company to be
the maximum amount of share capital of the company.
a. Authorised capital b. Nominal capital c. Subscribed capital d. Either (a) or (b)
3. ______________ means such capital as the company issues from time to time for subscription.
a. Issued capital b. Called up capital c. Subscribed capital d. Registered capital

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BADALA CLASSES CA-INTERMEDIATE
4. As per section 2(50) of Companies Act, 2013, __________ means such capital as the company issues from time to
time for subscription.
a. Issued capital b. Nominal capital c. Subscribed capital d. Paid up capital
5. According to Section 2(86) of Companies Act, 2013, _________ means such part of the capital, which is for the
time being subscribed by the members of a company.
a. Issued capital b. Nominal capital c. Subscribed capital d. Paid up capital
6. As per section 2(15) of Companies Act, 2013, means such part of the capital, which has been called for payment.
a. Issued capital b. Called up capital c. Nominal capital d. Paid up capital
7. __________means such part of the capital, which has been called for payment.
a. Issued capital b. Called up capital c. Subscribed capital d. Registered capital
8. _________means such part of the capital which is for the time being subscribed by the members of a company.
a. Issued capital b. Called up capital c. Subscribed capital d. Registered capital
9. Which of the following interest a share signifies in company?
a. The interest of a shareholder in the company.
b. The right to receive dividend; attend and vote at meeting, share in surplus assets in event of winding up.
c. Both of the above d. None of the above
10. Which of the following interest a share signifies in company?
a. The liability, of the shareholder in the company to pay calls on share until fully paid up.
b. The right of the shareholder to transfer the share as per AOA.
c. Both of the above d. None of the above
11. `Securities' include _____________
a. Shares, scrip, stocks, bonds, debentures, debenture stock or other marketable securities
b. Derivative.
c. Security receipt as defined under the Securitization Act, 2002. d All of the above
12. Company can cancel shares, which, at the date of passing of the resolution in that behalf, have not been taken or
agreed to be taken by any person. Which of the following is/are not incorrect statement(s) in above reference?
a. It will diminish the amount of its share capital by the amount so cancelled.
b. It will be considered as reduction of share capital.
c. It will reduce authorized capital of company. d. Both (a) and (b)
13. The company can retain the money as 'calls in advance' if so authorised by_______________
a. Memorandum of Association b. Articles of Association
c. Shareholders d. Stock exchange, where company is listed
14. Company can issue preference shares redeemable for _____________
a. Period not exceeding 20 years, if authorised by Articles
b. Period not exceeding 10 years, if authorised by Articles
c. Period not exceeding 20 months, if authorised by Articles or not
d. Period not exceeding 10 months, if authorised by Articles or not
15. When preference shareholders have voting rights?
a. Resolutions which directly affect the rights attached to his preference shares.
b. Any resolution for winding up of company.
c. Both of the above d. None of the above
16. The preference shareholders get voting rights at par to equity shareholders in case of all resolutions at general
meeting only when dividends on the preference shares are in arrears for
a. 2 or more years b. 1 or more year c. 6 months more time d. In all cases
17. As per Section 23 of Companies Act, 2013, company can make public offer by ________
a. Initial public offer (IPO) of securities of company b. Further public offer of securities of company
c. Offer for sale of securities to the public by an existing shareholder d. All of the above

18. India Cements Ltd., has offered its existing members to take new shares in proportion to their existing
shareholding. It is
a. Public issue b. Right issue c. Sweat equity d. Bonus issue
19. Company can issue sweat equity to __________
a. Employees of company b. Directors of company c. Promoters of company d. Either (a) or (b) or (c)
20. Which of the following can be written off by utilising Securities Premium Account?
a. Expenses incurred on issue of shares or debentures. b. Commission paid on shares.
c. Discount allowed on debentures. d. All of the above
21. The securities premium account can be used _______________.
a. To issue un-issued shares of company to members as fully paid up bonus shares
b. Buy-back of company's own shares
c. Both of the above d. None of the above
22. The securities premium account can be used_________________.
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BADALA CLASSES CA-INTERMEDIATE
a. For reduction of capital
b. To write off commission paid or discount allowed on issue of shares or debentures of the company
c. To make corporate investment d. Both (a) and (b)
23. ________________of the company should authorize the issue of shares with differential rights.
a. Object clause b. Articles of Association c. Terms and condition of earlier equity shares d Both (b) and (c)
24. The shares with differential rights shall not exceed ________of the total post-issue paid up equity share capital.
a. 15% b. 25% c. 26% d. 50%
25. To issue shares with differential voting rights, company should not be a defaulter in filing financial statements and
annual returns for financial years immediately preceding the financial year in which it is decided to issue such
shares.
a. 2 years b. 3 years c. 5 years d. 8 years
26. The company is not eligible to issue differential voting equity shares if it is penalized by Court or Tribunal during
the last three years of any offence under_____________, or any other special Act, under which such company is
being regulated by sectoral regulators.
a. RBI Act b. SEBI Act c. SCRA Act d. All of the above
27. Which of the following statement(s) is/are not correct?
a. Existing equity share capital can be converted into equity shares with differential rights
b. Equity shares with differential rights cannot be converted into simple equity shares
c. The holders of the equity shares with differential rights shall enjoy all other rights such as bonus shares, rights
shares etc.
d. Both (a) and (c)
28. As per Section 39(2) of Companies Act, 2013, minimum ________of share must be receivable at the time of
application.
a. 5 % of issue price b. 5% of nominal amount c. 25 96 of issue price d. 25% of nominal amount
29. The allotment of shares has to be made by _____________.
a. Board of Directors b. Committee of Board c. Either (a) or (b) [Link] (a) nor (b)
30. Application money for minimum subscription should be received in
a. Cash b. Cheque c. Other instrument d. Either (a) or (b) or (c)
31. Application money should be at least 5% of nominal amount of share, or such other percentage or amount as may
be specified by_____________.
a. SEBI b. ROC c. RD d. Stock Exchange
32. A Ltd. wants to make call on shares. Which of the following would be most appropriate action on part of A Ltd. in
respect of call?
a. It can make call by a resolution passed by Board of Directors at its meeting
b. It can make call by delegating this power to Committee of Directors
c. Either (a) or (b) d. Neither (a) nor (b)
33. Falcon Ltd. has adopted Table F as its Articles of Association. Company wants to make calls on shares. Notice
demanding call must specify _____________
a. Exact amount b. Last date for making payment c. Place of payment d. All of the above
34. Falcon Ltd. has adopted Table F as its Articles of Association. Company wants to make calls on shares. How
many days' notice shall be given for payment of call?
a. 7 days b. 14 days c. 21 days d. 30 days
35. Falcon Ltd. has adopted Table F as its Articles of Association. Company wants to make calls on shares. A call
cannot exceed ___________of nominal value of shares.
a. 5% b. 25% c. 50% d. Any amount as Board decides
36. Falcon Ltd. has adopted Table F as its Articles of Association. Company wants to make calls on shares. There
must be at least_________ gap between two calls.
a. 15 days b. 30 days c. One month d. Two months
37. Which of the following statement(s) is/are not correct with reference to Table F?
a. Board cannot revoke or postpone the call
b. Joint holders of a share shall be jointly and severally liable to pay all calls
c. Both of the above d. None of the above
38. Which of the following statement(s) is/are correct?
a. Calls on shares must be made on uniform basis on all shares falling under the same class
b. Calls may be made bona fide and in the interest of the company
c. Both of the above d. None of the above
39. Falcon Ltd. has adopted Table F as its Articles of Association. Can company accept calls in advance?
a. No b. No. Calls in advance required consent of members
c. Yes. Table F authorizes Board to accept calls in advance
d. Yes. Companies Act, authorizes to accept calls in advance by any company
40. Which of the following action is needed to forfeit shares by company on non-payment of call money?
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BADALA CLASSES CA-INTERMEDIATE
a. Permission of NCLT b. Permission of Court
c. Resolution shall be passed by members at general meeting.
d. Resolution shall be passed by Board at Board meeting.
41. When the return of allotment is required to be filed with Registrar of Companies?
a. On forfeiture of shares b. On re-issue of forfeiture of shares
c. On surrender of shares d. None of the above
42. Company can reduce its capital by passing _______and on confirmation by__________
a. Ordinary resolution; NCLT b. Special resolution; NCLT
c. Board resolution; Court d. Unanimous resolution of members; Court
43. Company cannot reduce its capital if it____________________.
a. Has not appointed independent director b. Has not appointed woman director
c. Is in arrears in repayment of deposits d. All of the above
44. The accounting treatment proposed by the company for reduction of capital shall be as per Accounting Standard
and certificate of__________ shall be filed before Tribunal.
a. Company's auditor b. Auditor c. Secretarial auditor d. Managing director
45. Provisions relating to reduction of capital under Companies Act, 2013 is not applicable in case of________.
a. Forfeiture of shares b. Buy-back of shares c. Both of the above d. None of the above
46. Company should apply to NCLT for an order confirming reduction of capital after passing special resolution in
Form RSC 1. Application should be accompanied by _______________.
a. Chartered Accountant's certificate b. List of creditors
c. Both of the above d. None of the above
47. Company should apply to NCLT for an order confirming reduction of capital after passing special resolution.
NCLT shall give notice of such application to
a. Central Government b. SEBI (in case of listed company) c. Both (a) and (b) d. None of the above
48. In the case of capital reduction, notice to creditor shall be given in Form RSC 3. In addition, NCLT shall direct
publishing advertisement in Form RSC-4 _________from the date on which the directions are given, in English
language in a leading English newspaper and in a leading vernacular language newspaper.
a. Within 5 days b. Within 7 days c. Within 10 days d. Within 14 days
49. As per Companies Act, 2013, company can buy-back its shares out of__________.
a. Free reserves b. Short term loan c. Amount received from Government d. Both (a) and (c)
50. As per Companies Act, 2013, company can buy-back its shares out of __________
a. Securities Premium Account b. Proceeds of any shares or other specified securities
c. Proceeds of same kind of shares issued earlier d. Both (a) and (b)
51. _________approving buy-back should be passed at the general meeting, if buy-back exceeds ________of paid
capital plus free reserves.
a. Special Resolution; 10% b. Special Resolution; 15%
c. Ordinary Resolution; 10% d. Ordinary Resolution; 15%
52. If company wants to go for buy-back upto 10% of its paid-up equity capital and free reserve, it shall_________.
a. Pass Board resolution b. Pass circular resolution
c. File Form MGT 14 with ROC after passing Board resolution d. Both (a) and (c)
53. After buy-back, debt equity ratio should not exceed
a. 2:1 b. 1:2 c. 3:1 d. 3:2
54. In one particular financial year, buy-back shall not exceed _________of total paid-up capital and free reserve of
company.
a. 15% b. 20% c. 25% d. 30%

55. ABC Ltd. has passed Board resolution for buy back on 1st January 2018. It should be completed _______
a. On or before 31st March 2018 b. On or before 30th June 2018
c. On or before 30th September 2018 d. On or before 31st December 2018
56. Company cannot resort to buy-back within _______from closure of preceding buy back offer.
a. Six months b. One year c. Two years d. At any time
57. A company can buy-back its own securities from_________
a. Existing shareholders on a proportionate basis b. Open market
c. Employees to whom securities were issued pursuant to a scheme of stock option or sweat equity
d. Any of the above
58. After completion of buy-back, a company cannot issue same kind of share or other security (which was bought
back) for a period of
a. Six months b. One year c. Two years d. For reasonable time as decided by Board
59. Smart Ltd. wants to buy-back its shares. It can buy-back shares as per provision of Companies Act, 2013. It
cannot buy-back its shares
a. Through its subsidiary company b. Through an investment company
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BADALA CLASSES CA-INTERMEDIATE
c. Either (a) or (b) d. Neither (a) nor (b)
60. In the case of buy-back declaration of solvency is given. It is signed by __________.
a. Two directors, out of which one should be MD, if any
b. Two directors, out of which one should be KMP, if any
c. Three directors, out of which one should be MD, if any
d. All directors and Company Secretary of company, if any
61. The verifications of offer shall be done within_______from date of closure of the offer. Shares lodged shall be
deemed to be accepted for buy-back unless a communication of rejection is done within _____from the closure of
offer.
a. 15 days; 21 days b. 21 days; 15 days c. 21 days; 30 days d. 30 days; 15 days
62. After completion of buy-back, a return in Form SH 11 has to be filed with ROC and SEBI within______ giving
details as prescribed. If the company is not listed, filing details with SEBI is not required.
a.30 days b.45 days c. 15 days d. 21 days
63. After completion of buy-back, a return in Form SH 11 has to be filed with ROC and SEBI. Along with return, a
certificate signed by______________shall be submitted.
a. Two directors b. Two directors and Company Secretary
c. One director and one Managing Director d. One Managing Director and Company Secretary
64. The securities bought back should be physically destroyed within _________from completion of buy-back.
a. 5 days b. 7 days c. 10 days d. 15 days
65. In case of right offer by company, offer letter may be dispatched through registered post or speed post or
electronic mode or through any other mode having proof of delivery to all existing members at least
________before opening of the issue.
a. 3 days b. 5 days c. 7 days d. 15 days
66. In case of right offer by company, offer letter may be dispatched through registered post or speed post or
electronic mode or through any other mode having proof of delivery to all existing members at least 3 days before
opening of the issue. Member should accept offer within period of _________.
a. Not be less than 10 days or more than 15 days b. Not be less than 15 days or more than 30 days
c. Not be less than 15 days or more than 25 days d. Not be less than 25 days or more than 45 days
67. ABC Ltd. proposes to make preferential issue in-stead of right shares. It shall_________.
a. Pass special resolution in general meeting b. Carry out valuation of shares by registered valuer
c. Either (a) or (b) d. Both (a) and (b)
68. In case of preferential issue of shares, company shall pass special resolution. Special resolution should be acted
within__________.
a. 2 months b. 3 months c. 6 months d. 12 months
69. Free Ltd. is proposing to issue bonus share. Which of the following amount can be used for issue of bonus shares
as per Companies Act, 2013?
a. Free reserves b. Securities premium account c. Capital redemption reserve account d. All of the above
70. When company cannot issue bonus shares as per Companies Act, 2013?
a. If its Articles of association is silent
b. If its members have passed special resolution authorising issue of bonus shares
c. Both of the above d. None of the above
71. When company cannot issue bonus shares as per Companies Act, 2013?
a. It has defaulted in payment of interest or principal in respect of fixed deposits
b. It has defaulted in payment of interest or principal in respect of debt securities issued by it.
c. Both of the above d. None of the above
72. When company cannot issue bonus shares as per Companies Act, 2013?
a. It has not defaulted in respect of the payment of statutory dues of the employees such as contribution to
provident fund, gratuity and bonus.
b. It has all its existing shares are fully paid-up c. Both of the above d. None of the above
73. __________means equity shares issued by company to its employees or directors at a discount or for
consideration other than cash.
a. Sweat Equity Shares b. ESOS c. ESOP d. Stock option
74. ABC is unlisted company. It shall pass ______ to issue sweat equity. Resolution passed shall be valid for______.
a. Ordinary resolution; 6 months b. Special resolution; 12 months
c. Special resolution; 6 months d. Ordinary resolution; 12 months
75. Which of the following statement(s) is/are not correct with reference to provisions of share capital under
Companies. Act, 2013?
a. Bonus shares/right shares are issued to preference shareholders
b. A company may issue rights shares or bonus shares to the company's existing equity shareholders
c. Both of the above d. None of the above

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BADALA CLASSES CA-INTERMEDIATE
76. Which of the following statement(s) is/are correct with reference to provisions of share capital under Companies
Act, 2013?
a. Voting right of preference shareholders on a poll shall be in disproportion to his share in the paid-up preference
share capital of the company
b. Voting right of equity shareholders on a poll shall be in proportion to his share in the paid-up equity share
capital of the company.
c. Both of the above d. None of the above
77. Special resolution authorising the issue of sweat equity shares shall be valid for making the allotment within a
period of not more than ___________from the date of passing of the special resolution.
a. 2 months b. 6 months c. 12 months d. 2 years
78. The sweat equity shares issued to directors or employees shall be locked for a period of ______ from the date of
allotment.
a. 12 months b. 24 months c. 36 months d. 60 months
79. To issue shares with differential rights, the company having consistent track record of distributable profits for the
a. Any three years out of preceding five years b. Last 5 years
c. Last 3 years d. Any five years out of preceding ten years
80. To issue of shares with differential voting rights, a/ an __________resolution is to be passed at a general meeting
of the shareholders.
a. Ordinary b. Special c. Circular d. Special with special notice
81. A company may redeem its preference shares only on the terms on which they were issued or as varied after due
approval of preference shareholders under section 48 of the Act and the preference shares may be redeemed ___
a. At a fixed time or on the happening of a particular event
b. Any time at the company's option c. Any time at the shareholder's option d. Either (a) or (b) or (c)
82. ABC is unlisted company. Sweat equity shares is-sued by ABC Ltd. cannot exceed __________of existing paid up
capital or shares of issue value of
a. 10%; 5 crores, whichever is higher b. 15%; 5 crores, whichever is higher
c. 10%; 5 crores, whichever is lower d. 15%; 5 crores, whichever is lower
83. In case of unlisted public company, total sweat equity shares cannot exceed _________of company at any time.
a. 25% of paid up capital b. 25% of paid up equity capital
c. 25% of paid up equity capital and free reserve d. 15% of paid up capital
84. In case of unlisted company, sweat equity shares have lock-in-period of___________
a. 6 months b. 1 year c. 2 years d. 3 years
85. In case of startup company, it can issue sweat equity shares not exceeding ________of its paid-up capital upto
from date of incorporation or registration.
a. 30%; five years b. 50%; five years c. 30%; three years d. 50%; three years
86. As per Companies Act, 2013, ABC (P) Ltd shall pass to issue employees stock option.
a. Ordinary resolution b. Special resolution c. Unanimous Board resolution d. Resolution with postal ballot
87. In case of employee stock option, there shall be minimum ______period between grant of option and vesting of
option.
a. 1 year b. 2 years c. 3 years d. As decided by company
88. ________means any instrument in the form of a depository receipt, by whatever name called, created by a foreign
depository outside India and authorised by a company making an issue of such depository receipts.
a. Employees stock option b. Sweat equity c. Preferential issue d. Global depository receipt
89. Company can issue GDR by way of________
a. Public offering b. Private placement c. Either (a) or (b) d. Neither (a) nor (b)
CHAPTER - CHAPTER -4 (A) Share Capital (Allotment of share, capital & Alteration of Capital)
1. D 2. D 3. A 4. A 5. C 6. B 7. B 8. C 9. C 10. C
11. D 12. B 13. B 14. A 15. C 16. A 17. D 18. B 19. D 20. D
21. C 22. D 23. B 24. C 25. B 26. D 27. A 28. B 29. C 30. D
31. A 32. A 33. D 34. B 35. B 36. C 37. A 38. A 39. C 40. D
41. D 42. B 43. C 44. A 45. C 46. C 47. D 48. B 49. A 50. D
51. A 52. D 53. A 54. C 55. D 56. B 57. D 58. A 59. C 60. A
61. A 62. A 63. A 64. B 65. A 66. B 67. D 68. D 69. D 70. A
71. C 72. D 73. A 74. B 75. A 76. B 77. C 78. C 79. C 80. A
81. D 82. B 83. B 84. D 85. B 86. A 87. A 88. D 89. C

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BADALA CLASSES CA-INTERMEDIATE

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -4 (B) Membership, Transfer & Transmission
1. A 'share' of a company having share capital shall be distinguished by its______
a. Share certificate b. Distinctive number c. Folio number d. All of the above
2. Share certificate issued by company shall be in _______ or as near as possible. It shall specify______________
a. Form SH 1; Name of member, number of shares and amount paid up
b. Form SH 2; Name of member, number of shares and amount paid up
c. Form SH 1; Name of member, number of shares and authorised capital of company
d. Form SH 2; Name of member, number of shares and authorised capital of company
3. Which of the following action of company is complying provisions of Companies Act, 2013?
a. A Ltd. has issued certificate after 3 months from allotment of any shares
b. B Ltd. has issued certificate within one month to subscribers to the memorandum
c. Both of the above d. None of the above
4. A share certificate has to be issued where shares are _________.
a. Partly paid up b. Fully paid up c. Issued for consideration other than cash d. All of the above

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BADALA CLASSES CA-INTERMEDIATE
5. Every certificate shall specify the shares to which it relates and the amount paid-up thereon and shall be signed by
a. Two directors b. One director and company secretary, if appointed company secretary
c. One KMP and company secretary, if appointed company secretary
d. Either (a) or (b)
6. Fresh sha F certificate can be issued by company __________
a. If the share certificates are sub-divided consolidated
b. For rep cement of certificates which are defaced, mutilated, torn or old, decrepit, worn out
c. Where he pages on the reverse for recording transfers have been duly utilized d All of the above
7. Record of renewed and Duplicate share Certificates shall be maintained in__________.
a. Form SH 1 b. Form SH 2 c. Form SH 3 [Link] H 4
8. the register of renewed and duplicate share certificate shall be kept at registered office or where register of
member 's kept in proper custody. All entries made in register shall be authenticated by________.
a. Company Secretary b. Person by board c. Director d. Either a) or (b)
9. The righ attached to any class of shares can be varied with consent of holders of at least ________of issued shares
of that class or with a special resolution passed at e separate meeting of that class.
a. 60% b. 75% c. 80% d 90%
10. Dissent' ng shareholders having at least __________of issued shares of that class can apply against cancellation of
variation of shareholders right.
a.5% b. 10% c. 15% d. 20%
11. Dissenting shareholders having at least 10% of issued shares of that class can apply against cancellation of
variation of shareholders right. Application should be made to ________within _____after date of consent or
passing of resolution.
a. Central Government; 21 days b. NCLT; 21 days
c. Central Government; 30 days d. NCLT; 30 days
12. Who among following can be member of company as per Companies Act, 2013?
a. ABC Ltd unlisted company b. Seva, registered co-operative society
c. Both of the above [Link] of the above
13. Who among following can be member of company as per Companies Act, 2013?
a. Society registered under Societies Act b. Registered trade union
c. Both of the above d. None of the above
14. Who among following can be member of company as per Companies Act, 2013?
a. ABC LLP b. XYZ & Co., partnership firm c. Both of the above d. None of the above
15. As per Regulation 15 of Table-F of Companies Act, 2013, joint holders of a share shall be___ liable to pay all
calls made on shares.
a. Jointly b. Severally c. Either (a) or (b) d. Both (a) and (b)
16. If the shares are in joint names, the transfer form must be signed __________
a. Jointly b. By any one of them c. By first named shareholder d By second named shareholder
17. Every company limited by shares shall maintain the Register of Members in ____________
a. Form MGT 14 b. Form MGT 5 c. Form MGT 1 d. Form MGT 4
18. The entries n register of members shall be made within __________ of approval of allotment or transfer of shares,
debentures or other securities.
a. 2 days b. 5 days c. 7 days d. 10 days
19. Register of meMbers to be maintained at Registered Office unless special resolution passed authorizing keeping
register at any other place in city or other place where ________ reside.
a. More than 10% of members b. Less than 10% of members
c. More than 5% of members and 5% of creditors d. Less than 5% of members and 5% of creditors
20. Who shall authenticate entries in register of members and its index
a. Company Secretary b. Any other person authorized by board
c. Either (a) or (b) d. Neither (a) nor (b)
21. Managing director of company wants to know provisions regarding inspection of Register of members, its index
and copies of annual return. Which of the following indicate to correct position for inspection provisions under C
Companies Act, 2013?
a. They are required to be kept open for inspection of any member, debenture holder and other security holder
without fee
b. They are required to be kept open for inspection of beneficial owner or any other person without fee
b. Both of the above d. None of the a love
22. If partly paid shares a received for transfer, company shall give notice to the transferee in ________.
a. Form SH 2 b. Form SH 3 c. Form SH 4 d. Form SH 5
23. As per Rule 11 of Companies (Share Capital and Debentures) Rules, 2014, if partly paid shares are received for
transfer, company shall give notice to the transferee in Form SH 5. The transfer shall not be registered, if no
objection to transfer is not received within_______weeks from date of receipt of notice.
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BADALA CLASSES CA-INTERMEDIATE
a. One week b. Two weeks c. Three weeks d. Four weeks
24. The instrument of transfer shall be in________and the instrument shall be delivered to company within________
from date of execution.
a. Form SH 2; 30 days b. Form SH 3; 60 days c. Form SH 4; 60 days d. Form SH 4; 30 days
25. When transfer deed is not required?
a. For transfer of security held in name of nominee of Government
b. For transmission by operation of law
c. Both of the above d. None of the above
26. When transfer deed with original certificate is not required?
a. Transmission of security by nomination b. Transmission of security under will or succession certificate
c. Transmission of security as per order of court or arbitrator d. All of the above
27. If a private company refuses to register the transfer or transmission, it shall, within__________from date of
lodgment of transfer deed or intimation about transmission, send notice of refusal to the transferee and the
transferor or to the person giving intimation about transmission.
a. 15 days b. 30 days c. 45 days d. 60 days
28. In case of public company, it is required to register transfer within thirty days. If the company refuses to register
the transfer or transmission without sufficient cause, the transferee should file appeal before NCLT within from
the refusal.
a. 15 days b. 30 days c. 45 days d. 60 days
29. The appeal for rectification of register of members can be filed by ______________
a. The person aggrieved b. Any member of the company
c. The company itself d. All of the above
30. Who can 1 appoint nominee for shares as per Companies Act, 2013?
a. Natura person b. Trust c. Society d. Partnership firm
31. Who cannot appoint nominee for shares as per Companies Act,2013
a. Company b. Body corporate c. Both of the these d. None of the above
32. As per Companies Act, 2013, nomination of security shall be made in __________.
a. Form S 11 b. Form SH 12 c. Form SH 13 d. Form SH 14
33. As per Companies Act, 2013, Form SH 13 shall be used for ____________.
a. Nomination of shares b. Nomination of debenture c. Both of the above d. None of the above
34. What will be situation, if nominee dies before the nominator?
a. Nomination automatically becomes void. b. The nominator another nominee before he dies
c. Both of the above d. None of the above
35. As per Rule 19 of Companies (Share Capital and Debentures) Rules, 2014, company shall record request for
nomination within _________from date of receipt of duly filled an u signed nomination form.
a. 15 days b. 45 days a Two mont d Three mon Is

CHAPTER - CHAPTER -4 (B) Membership, Transfer & Transmission

1. B 2. B 3. B 4. D 5. D 6. D 7. B 8. D 9. B 10. B
11. B 12. C 13. B 14. A 15. D 16. A 17. C 18. C 19. A 20. C
21. C 22. D 23. B 24. C 25. C 26. D 27. B 28. D 29. D 30. A
31. C 32. C 33. C 34. C 35. C

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -4 (C) DEBENTURES
1. As per section 2(30) of Companies Act, 2013, 'debenture' includes
a. Debenture stock b. Derivative c. Both of the above d. None of the above
2. As per section 2(30) of Companies Act, 2013, 'debenture' includes
a. Bonds b. Any other instrument of a company, whether constituting a charge on the assets of the company or not
c. Both of the above d None of the above
3. As per section 2(30) of Companies Act, 2013, 'debenture' includes
a. Instruments referred to in Chapter III-D of RBI Act b. Money market instruments
c. Both of the above d. None of the above
4. 'Debenture' includes debenture stock, bonds or any other instrument of a company, whether constituting a charge
on the assets of the company or not. Provided that (a) instruments referred to in Chapter III-D of RBI Act and (b)
such other instruments as may be prescribed by the__________in consultation with ______________ , issued by a
company, shall not be 'debentures'.
a. RBI; Central Government b. RBI; Registrar of Companies
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BADALA CLASSES CA-INTERMEDIATE
c. Central Government; RBI d. Central Government; Registrar of Companies
5. Which of the following companies can issue secured debentures for a period exceeding 10 years?
a. Company setting up infrastructural project.
b. Companies permitted by Ministry/Department of Central Government of RBI or NHB or any statutory authority
to issue debentures for period exceeding 10 years.
c. Both of the above d. None of the above
6. Which of the following companies can issue secured debentures for a period exceeding 10 years?
a. Infrastructure Finance Companies b. Infrastructure Debt Fund NBFC
c. Both of the above d. None of the above
7. In case of secured debentures, the security may be charge on properties or assets of
a. The company b. Its subsidiaries or holding company
c. Its associate companies d. Any of the above
8. As per section 71 of Companies Act, 2013, appointment of one or more debenture trustees is mandatory if a
company wants to issue prospectus or make an offer to public or its members exceeding
a. 50 b. 100 c. 200 d 500
9. Appointment of one or more debenture trustees is mandatory if a company wants to issue prospectus or make an
offer to public or its members exceeding five hundred. Such appointment must be made before issue of
a. Prospectus b. Letter of offer c. Either (a) or (b) d. Advertisement in newspaper
10. Name of debenture trustee must be indicated in________.
a. Letter of offer b. All subsequent notices c. Both of the above d. None of the above
11. Who among following cannot be appointed as debenture trustee?
a. Person holding shares beneficially in the company. b. Promoter of company
c. Both of the above d. None of the above
12. Who among following cannot be appointed as debenture trustee?
a. Officer or employee of company b. Employee of holding company
c. Both of the above d. None of the above
13. A Ltd. wants to prepare trust deed for appointment of debenture trustee. It shall be in ___________.
a. Form SH 12 only b. Form SH 12 or as near thereto as possible
c. Form SH 12 any other form d. Any of the above
14. Trust deed of debentures shall be available for inspection to of company and on payment of same fee.
a. Equity shareholder who is member b. Preference shareholder who is member
c. Debenture holder d. All of the above
15. Copy of debenture trust deed shall be forwarded to any member or debenture holder______.
a. Within 48 hours without fees b. Within 48 hours with payment of fee
c. Within 7 days without fees d. Within 7 days with payment of fee
16. Debenture certificate must be delivered to debenture holder within after allotment.
a. One month b. Two months c. Three months d. Six months
17. The Register of debenture holders shall be in_______________
a. Form MGT 14 b. Form SH 6 c. Form MGT 2 d. Form DB
18. Debenture certificate duly transferred must be delivered to transferee within__________.
a. One month b. Two months c. Three months d. Six months
19. The unpaid debenture and interest amount should be retained by the company for ______
a. 1 year b. 3 years c. 5 years d. 7 years
20. The unpaid debenture and interest amount should be retained by the company for seven years. If the amount is not
claimed within seven years from date when it became due, the unclaimed or unpaid amount should be paid by
company in__________
a. Investor Education and Protection Fund b. Separate bank account with any bank
c. Separate bank account with schedule bank d. Separate bank account with RBI
21. Who can apply to NCLT if debentures are not redeemed on maturity by company?
a. Debenture holders b. Debenture trustees c. 3/4th of members d. Either (a) or (b)
22. A debenture, in which no time is fixed for the company to pay back the money, is a/an________
a. Perpetual debenture b. Redeemable debenture c. Irredeemable debenture d. Both (a) and (c)
23. Which of the following statement(s) is/are incorrect with reference to provisions of debentures under Companies
Act, 2013?
a. Debentures are generally redeemable and on redemption, it can be reissued or cancelled
b. Company may issue debentures, which are secured or unsecured.
c. Both of the above d. None of the above
24. Which of the following statement(s) is/are incorrect with reference to provisions of debentures under Companies
Act, 2013?
a. If the words pari passu are not used, the debentures will not be payable according to the date of issue but it will
be payable accordingly to their numerical order.
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BADALA CLASSES CA-INTERMEDIATE
b. Company cannot issue a new series of debentures so as to rank pari passu with prior series, unless the power to
do so is expressly reserved and contained in the debentures of the previous series.
c. Both of the above d. None of the above
25. Which of the following statement(s) is/are incorrect with reference to provisions of debentures under Companies
Act, 2013?
a. The rate of interest is fixed in the case of debentures. b. Debenture holders have voting right.
c. Both of the above d. None of the above
26. The issue of debentures with an option to convert such debentures into shares, wholly or partly, shall be approved
by a ____________.
a. Special resolution at general meeting b. Ordinary resolution at general meeting
c. Board resolution at board meeting d. Circular resolution
27. The security for the debentures by way of a charge or mortgage shall be treated in favour of the debenture trustee
on_______________
a. Any specific movable property of the company (not being in the nature of pledge)
b. Any specific immovable property wherever situate, or any interest therein
c. Either (a) or (b) d. Neither (a) nor (b)
28. Every company required to create Debenture Redemption Reserve shall on or before the _______ in each year,
invest or deposit, as the case may be, a sum which shall not be less than fifteen per cent, of the amount of its
debentures maturing during the year ending on the 31st day of March of the next year.
a. 30th day of April b. On or before 30th day of April c. Before 30th day of April d. After 30th day of April
29. A person shall not be appointed as a debenture trustee, if he—
a. Beneficially holds shares in the company b. Is a promoter of the company
c. Both of the above d. None of the above
30. A person shall not be appointed as a debenture trustee, if he—
a. Is a promoter of its holding company b. Is a promoter of associate company
c. Both of the above d. None of the above
31. A person shall be appointed as 'a debenture trustee, if he—
a. Not director of company b. Employee of company c. Both of the above d. None of the above
32. A person shall be appointed as a debenture trustee, if he—
a. Not director of holding company b. Not director of subsidiary company
c. Not director of associate company d. All of the above
33. A person shall not be appointed as a debenture trustee, if he —
a. Key managerial personnel of subsidiary company b. An employee of the holding company
c. Both of the above d. None of the above
34. A person shall not be appointed as a debenture trustee, if he—
a. Is beneficially entitled to moneys which are to be paid by the company otherwise than as remuneration payable
to the debenture trustee
b. Is indebted to the associate company
c. Has furnished any guarantee in respect of the principal debts secured by the debentures or interest thereon
d All of the above
35. A person shall not be appointed as a debenture trustee, if he has any pecuniary relationship with the company
amounting to __________% or more of its gross turnover or total income or________ lakh rupees or such higher
amount as may be prescribed, whichever is lower, during the two immediately preceding financial years or during
the current financial year.
a. 2; 50 b. 1; 50 c. 2; 25 d.1; 25
36. Any debenture trustee may be removed from office before the expiry of his term only if it is approved by the
holders of not less than_________ in value of the debentures outstanding, at their meeting.
a. 1/4th b. 3/ 4th c. 2/3rd d. 51%
37. It shall be the duty of every debenture trustee to satisfy himself that the letter of offer does not contain any matter
which is inconsistent with the___________
a. Terms of the issue of debentures b. Trust deed c. Both of the above d. None of the above
38. Debenture trustee can appoint a nominee director on the Board of the company in the event of__________of
interest to the debenture holders.
a. One default in payment b. Any two defaults out of total three payment
c. Two consecutive defaults in payment d. Three consecutive defaults in payment
39. Debenture trustee can appoint a nominee director on the Board of the company in the event of _______
a. Default in creation of security for debentures b. Default in redemption of debentures
c. Either (a) or (b) d. Neither (a) nor (b)
40. Which of the following document(s) can be treated as debentures?
a. A series of income-bonds by which a loan to the company was repayable only out of its profits.
b. A note by which a company undertook to pay a loan but gave no security.
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BADALA CLASSES CA-INTERMEDIATE
c. Both of the above d. None of the above
CHAPTER - CHAPTER -4 (C) DEBENTURES
1. A 2. C 3. D 4. C 5. C 6. C 7. D 8. D 9. C 10. C
11. C 12. C 13. B 14. D 15. D 16. D 17. C 18. B 19. D 20. A
21. D 22. D 23. D 24. A 25. B 26. A 27. C 28. B 29. C 30. C
31. A 32. D 33. C 34. D 35. A 36. B 37. C 38. C 39. C 40. C

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -5 ACCEPTANCE OF DEPOSITS BY COMPANIES
1. The Board resolution to invite, accept or renew public deposits and related matters, to review or change terms and
conditions of public deposits can be passed ________
a. In board meeting only, not by circular resolution of board.
b. By circular resolution of board only, not in board meeting.
c. Either in board meeting or by circular resolution of board.
d. In general meeting only. It need not be passed in board meeting.
2. Under Section 2(31) of the Companies Act, "Deposit" includes any receipt of money by way of deposit or loan or
in any other form by a company, but does not include such categories of amount as may be prescribed in
consultation with the__________.
a. Central Government b. Reserve Bank of India
c. Board of Directors of the company d. Secretary, Ministry of Corporate Affairs
3. Deposit creates relationship of________.
a. Principal and agent b. Shareholder and company c. Debtor and creditor d. Customer and supplier
4. Which of the following amount (i.e. transaction) is not considered as deposit as per Companies Act, 2013?
a. Amount received from the Central Government b. Amount received from the State Government
c. Amount received from any other source but whose repayment is guaranteed by the Central Government
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BADALA CLASSES CA-INTERMEDIATE
d. All of the above
5. Which of the following amount (i.e. transaction) is not considered as deposit as per Companies Act, 2013?
a. Amount received as a loan from any banking company
b. Amount received as loan from notified public financial institutions
c. Both of the above d. None of the above
6. Which of the following amount (i.e. transaction) is not considered s deposit as per Companies Act, 2013?
a. Amount from foreign government, foreign bank or multilateral agency.
b. Amount received by a company from any other company.
c. Both of the above d. None of the above
7. Which of the following amount (i.e. transaction) is not considered a deposit as per Companies Act, 2013?
a. Amount received from an employee of the company by way of security deposit and it is as per contract of
employment and non-interest bearing.
b. Amount received from an employee of the company by way of security deposit and it is as per contract of
employment and interest bearing.
c. Both of the above d. None of the above
8. Which of the fallowing amount (i.e. transaction) is not considered as deposit as per Companies Act, 2013?
a. Amount received by way of security from any purchasing agent.
b. Amount received dyed from director of company.
c. Both of the above d. None of the above
9. Amount received by company by way of subscription money to any securities pending it’s allotment and any
amount received by way of calls in advance on shares in not considered as deposit if shares are allotted within
_____day from receipt of application money.
a. 30 b. 45 c. 60 d. 90
10. Company other than Eligible Company can accept deposits upto __________of aggregate paid up capital, free
reserve and securities premium account from member.
a. 10% b. 15% c. 25% d. 35%
11. Circular to invite deposit is filed with ROC before _________days from date of issue to members.
a. 15 b. 21 c. 30 d. 45
12. In case of secured deposits from public, charge should be created ____________
a. within 30 days in favour of depositors b. on assets of company c. both of the above d. none of the above
13. Circular to invite deposit shall be issued to its members by________.
a. Registered post with acknowledgement due b. Speed post
c. Electronic means d. Either (a) or (b) or (c)
14. A company inviting deposits from public, advertise in Form DPT 1 in_________.
a. English language b. Regional language newspaper
c. Both of the above d. None of the above
15. Circular inviting deposit shall remain valid for a period of_______ months from the closure of the financial year
in which it is issued or_______ is held, whichever is earlier.
a. 6; until date of AGM is held b. 3; until date of AGM is held
c. 6; 6 months from date on. which AGM is held d. 3; 6 months from date on which AGM is held
16. Return of deposits shall be filed with Registrar on or before________of every year stating position as on 31st
March of that year.
a. 30th April b. 30th May c. 30th June d. 30th September
17. Return of deposits shall be certified by ______of company.
a. Any two directors b. Auditor of Company
c. Any Chartered Accountant d. Company secretary in practice
18. Which of t e following statement(s) is/are not correct with reference to Companies Act, 2013?
a. Company can make premature payment of deposits of deposits after 6 months.
b. Company as discretionary power to repay premature deposits.
c. Company May refuse to repay premature deposit. d. None of the above
19. Which of the following statement(s) is/are correct with referenced Companies Act, 2013?
a. Depositor may make nomination at any time.
b. Provisions of nomination as prescribed under section 72 are applicable for nomination of deposit.
C. Both of the above d. None of the above
20. Details of deposit accepted shall be entered into Register of deposit within__________.
a. 7 days b. 2 days c. 5 days d. 15 days
21. Who among, the following person cannot be appointed as deposit trustee?
a. Director o company b. KMP of company
c. Employee of company d. All of the above
22. Who among the following person cannot be appointed as deposit it trustee?

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BADALA CLASSES CA-INTERMEDIATE
a. Person w o has pecuniary relationship with company b. Person who has provided guarantee for company
c. Both of the above d. None of the above
23. The meeting of depositors shall be called by the deposit trustee on________.
a. requisition in writing signed by at least 1/10th of the depositors in value for the time being outstanding.
b. the happening of any event, which constitutes a default or which in the opinion of the deposit trustee affects the
interest of the depositors
c. either (a) or (b) d. neither (a) nor (b)
24. A public company having net worth of __________or turnover of________will be `eligible company' under
section 76(1) of Companies Act, 2013 to invite deposits from the persons other than its members. Such company
can invite public deposits.
a. Not more than Rs. 100 Crs; Not less than Rs. 500 Crs b. Not less than Rs. 500 Crs; Not more than Rs. 500 Crs
c. Not less than Rs. 500 Crs; Not less than Rs. 500 Crs d. Not less than Rs. 100 Crs; Not less than Rs. 500 Crs
25. The public company accepting deposits from public shall obtain the credit rating (including its net worth, liquidity
and ability to pay its deposits on due date) from a recognised credit rating agency. The rating shall be obtainedfor
_________during the tenure of deposits.
a. Every six months b. Every year c. Every three years d. Every five years
26. Every public company accepting secured deposits from the public is required to create a charge on its assets of an
amount not less than the amount of deposits accepted in favour of the deposit holders. The charge should be
created within________days from accepting the deposits.
a. 30 b. 45 c. 60 d. 90
27. Maharaja Sewing Appliances Ltd. is a listed company on Bombay Stock Exchange in India. The company is
having net worth of Rs. 99 Crs and Turnover of Rs. 499 Crs. The company can make invitation to public for
acceptance of deposits from_________.
a. Members only b. Public and other persons only
c. Members as well as other persons and public d. Neither members nor other persons
28. A ________can accept deposits from its members after passing resolution in general meeting as per the provisions
of Section 73(2) of the Companies Act, 2013.
a. Public company only b. Private company only
c. Public and private company d. Public and foreign company
29. Details of money borrowed by a company should be filed with ROC in __________
a. Form FC 5 b. Form NC T-11 c. Form DP -3 d. Form BR -3
30. According 10 Section 73(5) of the Companies Act, 2013, The deposit repayment reserve account' shall be used by
the company
a. For repayment of deposits, repayment of debentures and distributing dividend to shareholders
b. For repayment of deposit and repayment of debentures
c. Only for purpose of repayment of deposits
d. For repayment of deposits and to write off impairment of deposits
31. Imagination imaging company Ltd. issued and accepted deposit from its members and the public five years back.
The company is planning to issue another round of public deposits and complies all the provisions of the
Companies Act, 2013. The company intends to issue Secured deposits; therefore, it is required to create security in
favour of __________. Therefore,_______should be executed with them in_________at least ______days before
issuing circular/advertisement.
a. Trustees; II eposit Trust Deed; Form DPT-2; Seven
b. Members; Shareholder Agreement; Form MGT-7; Fourteen
c. Trustees; shareholder Agreement; Form DPT-11; Twenty-one
d. Members; Deposit Trust Deed; Form DPT-2; Thirty
32. Provision o security is not mandatory for a company issuing public deposit. Where a company does not secure the
deposits or secures such deposits partially, then, the deposits shall be termed as __________.
a. Secured Deposits b. Unsecure Deposits c. Current liabilities and provisions d. Unsecured Assets
33. Secured or unsecured deposit can be accepted by a company under the provisions of the companies Act, 2013 for
minimum period of _________and maximum__________.
a. 1 month; 12 months b. 3 months; 24 months c. 6 months ; 36 months d. 12 months ; 48 months
34. Rule 3(2) of Companies (Acceptance of Deposits) Rules, 2014 provides that Secured or unsecured deposit can be
accepted for minimum period of 6 months and maximum 36 months. However, for short term requirements,
deposits upto __________of aggregate paid up capital, free reserves and 'securities premium account can be
accepted for period of less than six months but not less than three months.
a. 10% b. 25% c. 50% d. 100%
35. A company accepting deposits from members can accept deposits upto___________of aggregate of paid up
capital, free reserves and securities premium account under Rule 3(4) of Companies (Acceptance of Deposits)
Rules, 2014.
a. 10% b. 25% c. 50% d. 100%
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BADALA CLASSES CA-INTERMEDIATE
36. ONGOICPFC company Ltd is a Government Company. The company is planning to issue public deposit. A
Government company, eligible to accept deposits under section 76 of Companies Act, 2013 can accept deposits
upto _________of paid up capital, free reserves and securities premium account from public.
a. 10% b. 25% c. 35% d. 50%
37. Under Rule 4(5) of the Companies (Acceptance of Deposits) Rules, 2014, The circular/advertisement inviting
public deposits in Form DPT-1 is required to be signed by________, and its copy shall be filed with ROC at least
__________days before date of issue of circular/advertisement.
a. 3/4th of Directors and Company Secretary of the company; 75
b. Majority of Directors, CFO, and the Company Secretary of the company; 30
c. Majority of Directors or their authorised agents; 30
d. 2 directors, company secretary and CEO of the company; 60
38. Under Rule 4(6) of the Companies (Acceptance of Deposits) Rules, 2014, The circular/advertisement shall be
valid till expiry of__________ months from date of closure of the date of closure of financial year or till financial
statement of company is laid before AGM of the company, whichever is earlier. After that, fresh
circular/advertisement should be published.
a. Three b. Six c. Nine d. Twelve
39. When a company accepts the deposit from its member or public, according to Rules, 2014, a receipt of deposit
must be issued to every deposit holder within ______days from receipt of the money or realization of cheque or
date of renewal.
a. Seven b. Fourteen c. Twenty-one d. Thirty
40. Under the Rule 5 of Companies (Acceptance of Deposits) Rules, 2014 a Company can make premature repayment
of deposits are expiry of 6 months. Rate of interest shall be__________
a. The same as decided at the time of issuance of deposit b. Reduced by 1%
c. Reduced by 2% d. Increase by 1%
41. According to the Rule 16 of Companies (Acceptance of Deposits) Rules, 2014, Annual return of deposits accepted
by a company is required to be filed with before every year, with ________ before _________every year, with
fees, in ________ , giving information as on ___________.
a. Registrar of Companies; 30th June; Form DPT3; 31st March
b. Registrar of Companies; 31st March; Form DPT 1; 31st December
c. Central Government; 31st July; Form DPT2; 31st March
d. Central Governme it; 30th June; Form DPT5; 31st March
42. Section 73 of Companies Act, 2013, where a company fails to repay the d posit or part thereof or any interest
thereon, the dep•sitor concerned may apply to NCLT for an order_______.
a. directing the company to pay the sum due
b. for any loss or damage incurred by him as a result of such non- payment
c. (a) and (b) both together d. (a) or (b) or both
43. Under Section 74 of the Companies Act, 2013, _________ may on an application made by the company, allow
further time as considered reasonable to the company to repay the deposit, after considering (a) the financial
condition of the company (b) the amount of deposit or part thereof (c) t e interest payable thereon and (d) such
other matters.
(a) Central Government b. Registrar of Companies c. Board of Directors of the company d. NCLT
44. According to Section 70 of the Companies Act, 2013, if a company is in default in repayment of fixed deposits or
interest thereon, it cannot engage in buy back of its own shares or securities, directly or indirectly.
a. True b. False. Company can engage in buy back of its own shares or securities, directly or indirectly.
c. False. Company can engage in buy back of its own shares or securities directly but cannot indirectly.
d. False. Company can engage in buy back of its own shares or securities, indirectly but cannot directly.
45. Who can file a suit, proceedings or take other legal action if he (they) had incurred any loss as a result of the
failure of the company to repay the deposits or part thereof or any interest thereon?
a. Any person b. A group of persons c. Any association of person d. Any of the above
46. Bonds or debentures secured by first charge or pari passu charge on assets of the company (excluding intangible
assets of the company) are not 'deposits' under the Companies Act, 2013, however, unsecured debentures or bonds
where the security is illusory are 'deposits'.
a. True b. False. Secured as well as unsecured, both types of bonds and debentures are deposits.
c. False. Secured are deposits but unsecured are not deposits.
d False. Neither secured, nor unsecured bonds and debentures are considered as deposits.
47. Amount received by issue of unsecured NCD (Non-Convertible Debentures) and listed in stock exchange as per
SEBI Regulations are considered as deposit under the Companies Act, 2013.
a. True b. False. It is not considered as deposit.
c. False. It is not considered as deposit if it is not listed in stock exchange
d. False. It is a deposit under the listing agreement and not SEBI Regulations
48. A certificate of the of__________ the company shall be attached in Form DPT-1.
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BADALA CLASSES CA-INTERMEDIATE
a. Independent auditor b. Statutory auditor c. Secretarial auditor d. Practicing Chartered Accountant
49. A certificate of the statutory auditor of the company shall be attached in Form DPT-1 stating that the
_______accepted/taken either before or after commencement of the Companies Act, 2013.
a. Company has paid loan b. Company has paid its matured deposits
c. Company has defaulted in repayment of deposits or in payment of interest on such deposits
d. Company has not committed default in repayment of deposits or in payment of interest on such deposits.
50. According to Rule 14 of Companies (Acceptance of Deposits) Rules, 2014, a Company must maintain a register
of deposits giving particulars of name and address of depositor, PAN, date and amount of deposit, duration, rate of
interest and due date of repayment etc. The entries should be authenticated by_________. The register shall be
maintained for_________years.
1. Company secretary; seven [Link] who is the member of audit committee; eight
c. Director, CFO or Company Secretary; seven d. Director or secretary or authorized officer; eight

Answer key CHAPTER -5 ACCEPTANCE OF DEPOSITS BY COMPANIES

1. C 2. B 3. C 4. D 5. C 6. C 7. A 8. C 9. C 10. C
11. C 12. C 13. D 14. C 15. A 16. C 17. B 18. D 19. C 20. A
21. D 22. C 23. C 24. D 25. B 26. A 27. A 28. C 29. C 30. C
31. A 32. B 33. C 34. A 35. B 36. C 37. C 38. B 39. C 40. B
41. A 42. D 43. D 44. A 45. D 46. A 47. B 48. B 49. D 50. D

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -6 REGISTRATION OF CHARGES
1. Company can create charge on __________of company.
a. Immovable or movable property b. Tangible or intangible property
c. Both of the above d. None of the above
2. Company can create charge on _______of company.
a. Existing assets b. Future assets c. Both of the above d. None of the above
3. _________ is a charge created on specified and identified assets.
a. Fixed charge b. Floating charge c. Registered charge d. Unregistered charge
4. Floating charge becomes fixed charge when
a. Debtor company ceases to carry on business b. Debtor company goes in liquidation
c. Both of the above d. None of the above
5. According to Section 2(16) of the Companies Act, 2013, "charge" means _________as security and includes a
mortgage.
a. An interest on property or undertaking of company b. Lien created on assets or property of company
c. Both of the above d. None of the above
6. Which of the following statement(s) is/are correct with reference to provisions of charge under Companies Act,
2013?
a. A charge secured against stock-in-trade is called a fixed charge
b. A charge secured against land, building, or plant and machinery is floating charge
c. Both of the above d. None of the above
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BADALA CLASSES CA-INTERMEDIATE
7. Which of the following statement(s) is/are correct with reference to pr visions of charge under Companies Act,
2013?
a. The security remains dormant in case of a floating charge until it is crystallized.
b. The owner of a p property secured against a floating charge cannot deal with the property.
c. Both of the above d. None of these
8. A floating charge crystallises and the security be-comes fixed when
a. The company goes into liquidation; b. The company ceases to carry on its business;
c. The creditors o the debenture holders take steps to enforce the security
d Either (a) or (b) or (c)
9. Which of the folio wing charge created by company shall be registered with Registrar?
a. Charge create within or outside India on its property or assets
b. Charge create within or outside India on any of its undertakings
c. Charge created by company on its tangible assets situated in or outside India
d. All of the above
10. Particulars of charges that is being filed with Registrar of Companies is to be signed by the company creating the
charge and the charge holder in ______________.
a. Form CHG-1 b. Form CHG-9 c. Either (a) or (b) d. Neither (a) nor (b)
11. As per section 77 of Companies Act, 2013, the charge should be filed with Registrar within_________ from its
creation.
a. 15 days b. 21 days c. 30 days d. 300 days
12. If charge is not filed within 30 days, application for condonation of delay shall be filed in________
a. Form CHG 7 b. Form CHG 8 c. Form CHG 9 d. Form CHG 1
13. Application for condonation of delay and rectification of register of charges shall be made in_______
a. Form CHG 7 b. Form CHG 8 c. Form CHG 9 d. Form CHG 6
14. Who can register charge with Registrar of Companies?
a. Company (i.e. borrower) b. Charger holder when company fails to register
c. Any schedule bank d. Both (a) and (b)
15. Satisfaction of charge shall be filed within _________from date of full satisfaction.
a. 15 days b. 21 days c. 30 days d. 300 days
16. The details regarding satisfaction of charge shall filed in________with Registrar of Companies.
a. Form CHG 4 b. Form CHG 8 c. Form CHG 9 d. Form CHG 6
17. On filing of documents relating to satisfaction of charge, registrar shall enter memorandum of satisfaction of
charge in full and he will issue certificate of registration of satisfaction of charge in__________.
a. Form CHG 5 b. Form CHG 8 c. Form CHG 9 d. Form CHG 6
18. On receipt of the details of satisfaction of charge, the Register will send a notice to charge holder asking him to
show cause within why payment or satisfaction of charge should not be recorded.
a. 14 days b. 15 days c. 21 days d. 30 days
19. The certificate of registration of charge is issued by Registrar in__________
a. Form CHG 2 b. Four. CHG 3 c. Four. CHG 5 d. Form CHG 8
20. The certificate relating to modification of charge shall be issued by Registrar in
a. Form CHG 2 b. Form CHG 3 c. Form CHG 5 d. Form CHG 8
21. What wJl be consequences, if charge is not registered by company?
a. The charge is void against liquidator b. The charge is void against creditor
c. Both of the above d. None of the above
22. Company shall maintain Register of charges in
a. Form CHG 7 b. Form CHG 3 c. Form CHG 5 d. Form CHG 8
23. As per Rule 10 of Companies (Registration of Charges) Rules, 2014, the entries in Register of charge maintained
by company shall be authenticated by__________
a. A director of company b. Secretary of the company
c. Other person authorized by Board d. Any of the above
24. Every company must keep a Register of charges at_______.
a. Its registered office b. Its corporate office c. Its factory which is subject to charge d. Its head office
25. Entry should be made forthwith in Register of charge on _______.
a. Creation of charge b. Modification of charge c. Satisfaction of charge d. either (a) or (b) or (c)
26. Inspection of Register of charges can be done by __________free of cost.
a. Creditors b. Members c.. both of the above d. None of the above
27. Members charge on c. both of the abo e a. creation of charge d. none of the ab•ve b 27. The Register of :harges
must be kept open for c. satisfaction of charge inspection at the reg stered office during d. either (a) or (b) or (c) a.
office hours 26. Inspection of Register of charges can be done by b. business hours free of cost. c. working hours
a. creditors d 24 hours
ANSWER
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BADALA CLASSES CA-INTERMEDIATE
1. C 2. C 3. A 4. C 5. C 6. D 7. A 8. D 9. D
10. C 11. C 12. B 13. B 14. D 15. C 16. A 17. A 18. A
19. A 20. B 21. C 22. A 23. D 24. A 25. D 26. C 27. B

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -7 Management & Administration ( Registers & Meetings)
MCQ
1. All business at meeting other than AGM is treated as ______________________
a. Special business b. Ordinary business c. Ordinary resolution [Link] resolution
2. Extraordinary General Meeting of Indian Company shall be held at a _____________
a. Registered office of company b. Place within India c. Place outside India
d. Same city or town where registered office of company is situated
3. AGM of company must be held at _____________
a. Registered office of company b. Place within India
c. Same city or town where registered office of company is situated d. Both (a) or (c)
4. If there is no quorum within ____________of requisitioned extraordinary general meeting, the
requisition meeting stands cancelled.
a. 10 minutes b. 15 minutes c. 30 minutes d. 60 minutes
5. The EOGM must be called' within ___________ days and held within_________days from the date of
submission of requisition to the company.
a. 21; 30 b. 21;45 c. 30; 45 d 7; 30
6. If the Board fails to call the extra ordinary general meeting as required on requisition, or if notice of
EOGM is sent without the 'explanatory statement', the requisitionists themselves can proceed to call and
hold a meeting within_______________ from date of requisition.
a. 45 days b. Two months c. Three months d. Reasonable time

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BADALA CLASSES CA-INTERMEDIATE
7. If, for any reason, it becomes impracticable to call a meeting (other than Annual General Meeting),
_______ can order calling, holding and conducting of a meeting.
a. Registrar of Companies b. Regional Director c. NCLT d Court
8. AGM should be called during business hours of
a. 10 A.M. to 6 PM b. 9 A.M. to 6 PM c. 10 A.M. to 5 PM d 9 A.M. to 5 PM
9. Which company is allowed to give advance notice of 14 days instead of 21 days for calling general
meeting?
a. Non-profit companies b. Private companies c. Unlisted public companies d Start-up companies
10. The consent for shorter notice for calling AGM or EOGM can be in_____________
a. Writing b. By electronic means c. By show of hands [Link] (a) or (b)
11. Who among following is/are not entitled to get notice of general meeting?
a. Mr. A, member of company not having share capital
b. Mr. B, member of company having share capital and holding partly paid up shares
c. Cost auditor of company d. None of the above
12. Who among following is/are entitled to get notice of general meeting?
a. Mr. C, legal representative of deceased member of company
b. Mr. D, assignee of insolvent member of company
c. Both of the above d. None of the above
13. Who among following is/are not entitled to get notice of general meeting?
a. Statutory auditor of company b. Secretarial auditor of company
c. Mr. E, director of company d. None of the above
14. Who among following Ware entitled to get notice of general meeting?
a. Debenture trustee b. Trustee of shareholder
c. Both of the above d. None of the above
15. Which of the following business at AGM is/are not ordinary business?
a. Consideration of financial statements
b. Consideration of report of Board of Directors and auditors
c. Consideration of granting loan to another company
d All of the above
16. Which of the following business at AGM is/are ordinary business?
a. Declaration of final dividend b. Appointment of directors
c. Both of the above d. None of the above
17. Which of the following business at AGM is/are ordinary-business?
a. Appointment auditors for ensuring year and fix their remuneration
b. Buy back of shares c. Issue of Preference shares d. Both (b) and (c)
18. Which of the following statement(s) is/are not correct with reference to Companies Act, 2013?
a. All business at general meeting other than ordinary business is 'Special Business'
b.'Special resolution' means a resolution which is required to be passed with majority of 75%
c. All items of special business are not necessarily required to be passed as 'special resolution'
d. None of the above
19. First AGM should be held within ____________from close of_____________
a. 6; first financial year b. 6; first calendar year
c. 9; first financial year d. 9; first calendar year
20. Who can extend time limit for holding first AGM?
a. Registrar of Companies b. NCLT c. High Court d. None of the above
21. Who can extend time limit for holding AGM other than first AGM?
a. Registrar of Companies b. NCLT c. High Court d. None of the above
22. ROC can grant extension of time limit for holding AGM (other than first AGM) for maximum period
of_________
a. 30 days b. 45 days c. Two months d. Three months
23. When poll should be taken immediately by company?
a. Poll is demanded for adjournment of meeting b. Poll is demanded for election of chairman
c. Poll is demanded for inspection of any document d. Both (a) and (b)
24. If quorum is not present at general meeting even after half an hour, if the meeting is a requisition
meeting, the meeting stands
a. Adjourned as decided by Board b. Adjourned as decided by members
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BADALA CLASSES CA-INTERMEDIATE
c. Adjourned to same day in the next week at the same time and place d. Cancelled
25. If quorum is not present at general meeting even after half an hour in case of AGM or EOGM called by
Board of Directors, the meeting shall be______________________
a. Adjourned to same day in the next week at the same time and place
b. Adjourned as decided by Board c. Either (a) or (b) d. Cancelled
26. In the case of general meeting, quorum should be present__________
a. Throughout the meeting b. At the beginning of the meeting
c. At the end of the meeting d. At the middle of the meeting
27. As per Companies Act, 2013 instrument appointing a proxy shall be deposited at __________
a. Place of meeting b. Registered office of company
c. Corporate office of company [Link] place of business of company
28. The instrument appointing a proxy shall be deposited at the registered office of the company before the
time for holding the general meeting.
a. Not less than 24 hours b. Not less than 48 hours
c. Not more than 48 hours d. Not more than 24 hours
29. A person can act as proxy on behalf of maximum ___________members.
a. 10 b. 20 c. 25 d. 50
30. One person can be proxy for maximum 50 members and holding not more than of total share capital of
company carrying voting rights.
a. 10% b. 20% c. 25% d. 30%
31. In case of _____________only a member of company can be appointed as proxy.
a. Private company b. Section 8 company (licensed company)
c. Unlimited company d. Government Company
32. In case of a company not having share capital, ___________________
a. Proxy can be appointed only if Articles provide for such appointment
b. Proxy can be appointed only if terms and conditions of shares provides so
c. Proxy can be appointed only if Memorandum of Association provide for such appointment
d. Proxy cannot be appointed
33. Proxy shall be appointed in____________________
a. Form MGT 9 b. Form MGT 19 c. Form MGT 11 d. Form MGT 12

34. Proxy for original meeting is

a. Valid for all meetings held during year b. Valid for all meetings held during financial year
c. Valid for adjourned meeting d. Both (b) and (c)
35. Inspection of proxy can be made anytime during the period commencing________before the time fixed
for the commencement of the meeting and ending with the conclusion of meeting.
a. 24 hours b. 36 hours c. 48 hours d. 72 hours
36. Member who intends to inspect proxies should give ___________notice to company.
a. One day b. Two days c. Three days d. One week
37. As per Regulation 49 of Table F of Companies Act, 2013, if adjournment is for more than
__________notice of adjourned meeting shall be given, as in case of original meeting.
a. 7 days b. 15 day c. 21 days d. 30 days
38. In case of 'special resolution', a resolution is passed only when at least __________ of the members
present in person or by proxy cast vote in favour of their resolution.
a. 51% b. 60% c. 66.66% d 75%
39. Resolution proposed is considered as special resolution if________________
a. Notice specifying the intention to propose the resolution as a special resolution
[Link] of meeting must be duly given
c. The resolution must be passed by at least 75% of the members present and voting
d. All of the above
40. The notice of the intention to move such resolution (which requires special notice) shall be given to the
company by such number of members holding not less than _________of total voting power or holding
shares on which an aggregate sum of not exceeding Rs. _________ lakh has been paid-up, as may be
prescribe.
a. 1%; 5 b. 2%; 5 c. 5%; 1 d 5%; 2
41. As per Companies Act, 2013, which of following resolution requires special notice to be given?
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BADALA CLASSES CA-INTERMEDIATE
a. Resolution to remove director before expiry of his period or a resolution to appoint another director in
place of removed director
b. Resolution to appoint a person as auditor other than retiring auditor
c. Resolution to appoint a person as auditor for period more than one year
d. Both (a) and (b)
42. Initially, voting at the general meeting is by __________ , unless a__________is demanded before
voting or where voting is carried out electronically.
a. Show of hands; poll b. Poll; voice method c. Voice; poll d. Poll; show of hand method
43. As per Regulation 50 of Table F, in voting by show of hands, every member present in person has
irrespective of his shareholding.
a. Proportionate vote b. One vote c. Number of votes fixed by chairman d. Either (b) or (c)
44. When a 'poll' should be conducted?
a. Poll may be ordered by Chairperson on his own
b. Poll shall be ordered by chairperson if demand is made by requisite number of members
c. Either (a) or (b) d. Neither (a) nor (b)
45. In the case a company having a share capital, poll can be demanded by the members present,in person or
by proxy, and having not less than ______________of the total voting power or holding shares on which
an aggregate sum of not less than ______________or such higher amount as may be prescribed has been
paid-up.
a. 1 / 10th; Rs. 1,00,000 b. 1/10th; Rs. 5,00,000 c. 1/5th; Rs. 1,00,000 d. 1/5th; Rs. 5,00,000
46. In the case of company not having share capital poll can be demanded by any member or by proxy, and
having not less than of the total voting power.
a. 1/5th b. 1/10th c. 1/20th d. 1/2
47. The demand for poll can be withdrawn any time by ______________
a. Chairperson b. Majority of members present at meeting
c. Persons who made the demand [Link] member holding 1/10th of voting right
48. The scrutinizers appointed for the poll, shall submit a report to the Chairman of the meeting in
a. Form MGT 11 b. Form MGT 12 c. Form MGT 13 d. Form MGT 14
49. The scrutinizers appointed for the poll, shall submit a report to the Chairman of the meeting in Form
MGT 13 and the report shall be signed by the scrutinizer and the same shall be submitted to the
Chairman of the meeting within from the date the poll is taken.
a. Two days b. Three days c. Five days [Link] days
50. Which of the following resolutions cannot be passed by postal ballot?
a. Ordinary business b. Any business where directors or auditors have right to be heard at any meeting
c. Both of the above d. None of the above
51. The notice of postal ballot shall be sent
a. By Registered Post or speed post b. Through electronic means
c. Through courier service d. Either (a) or (b) or (c)
52. The scrutinizer shall submit his report as soon as possible after the last date of receipt of postal ballots
but not later than_________
a. Two days b. Three days c. Five days d. Seven days
53. Every listed company or a company having not less than ___________shareholders, shall provide to its
members facility to exercise their right to vote at general meetings by electronic means.
a. 200 b. 300 c. 500 d 1000
54. The e-voting shall remain open for minimum ___________days. It will close at_______ on the date
preceding the date of general meeting.
a. 3; 4 PM b. 3; 5 PM c. 2; 4 PM d. 5; 5 PM
55. Which Section of Companies Act, 2013 prescribes the requirement of submission of Annual Report by
every company having share capital to ROC?
a. 45 b. 26 c. 92 d. 68
56. Every company having share capital is required to file Annual Return with ROC within ______days of
Annual General Meeting. While, financial statements are required to be filed within________ days of
Annual General Meeting.
a. 30; 60 b. 60; 30 c. 90; 60 d. 120; 30
57. According to Section 92 of the Companies Act, 2013, prescribed extracts from the Annual Return shall
form, part of the ___________
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BADALA CLASSES CA-INTERMEDIATE
a. Management Discussion and Analysis b. Report of Board of Directors
c. Auditors' Report d. Notes to Accounts
58. According to Section 94 of the Companies Act, 2013, copy of annual return is required to be kept in of
the company. It shall be available for _________inspection, taking extracts and copy as per prescribed
condition and fees.
a. Every branch b. Registered office c. Office from where the company is doing financial dealing
d. At least one foreign location, if any
59. Under Section 94 of the Companies Act, 2013, who can order immediate inspection of register and index
and giving/sending of required copies?
a. Registrar of Companies b. Central Government c. Regional Director d. Either (b) or (c)
60. The minute books of general meetings shall be preserved
a. for 5 years b. permanently c. for 7 years d. for 8 years
61. Rule 8 of Companies (Registration Offices and Fees) Rules, 2014 prescribes that the Form MGT 10
should be pre-certified by___________
a. Practicing Chartered Accountant b. Practicing Company Secretary
c. Managing Director of the Company d. Chief Financial Officer of the Company
CHAPTER -7 Management & Administration ( Registers & Meetings)
1. A 2. B 3. D 4. C 5. B 6. C 7. C 8. B 9. A 10. D
11. D 12. C 13. D 14. A 15. C 16. C 17. A 18. D 19. C 20. D
21. A 22. D 23. D 24. D 25. C 26. A 27. B 28. B 29. D 30. A
31. B 32. A 33. C 34. C 35. A 36. C 37. D 38. D 39. D 40. A
41. D 42. A 43. B 44. C 45. B 46. B 47. C 48. C 49. D 50. C
51. D 52. D 53. D 54. B 55. C 56. B 57. B 58. B 59. D 60. B
61. B

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -8 DECLATION AND PAYMENT OF DIVIDEND
1. Identify the incorrect statement from the following with respect to provisions related to Dividend' as per the
Companies Act, 2013.
a. Ordinary meaning of dividend is a share of profits or reserves, whether at a fixed rate or otherwise, allocated
to holders of shares in a company.
b. Capitalisation of profits in the form of bonus shares is dividend.
c. Dividend cannot be paid out of capital. Payment of dividend out of capital is breach of trust.
d. Adividend on preference share capital can be paid only out of profits.
2. Dividend can be paid out of
i. Profits of current year after providing for depreciation
ii. Profits for previous financial year or years after providing for depreciation for previous years, remaining
undistributed
iii. Moneys provided by Central or State Government for payment of dividend in pursuance of guarantee given
by that, if any
iv. Capital provided by the Central or State Government
v. Paid-up capital provided by the Qualified Institutional Buyers
a. i, ii or iii b. ii, iii or iv c. i, ii, iii, iv or v d. i or iii
3. Which' of the following statement(s) is/are not correct?
a. Company can declare divided without providing depreciation as per Schedule II.
b. Company may transfer any percentage of profit to reserve before declaring dividend.
c. .Both of the above [Link] of the above
4. Where a company, owing to inadequacy or absence of profits in any financial year, proposes to declare dividend
out it in, previous to the accumulated profit earned by it in previous years, and transferred by the company to the
reserves, such declaration of dividend can be made out of ________.
dividend out of the accumulated profits earned by it in previous years, and transferred by the company to the
reserves, such declaration of dividend can be made out of
a. Free reserves, capital reserve and debenture redemption reserve
b. Free reserves, provision, defined benefit obligations reserves and capital reserve

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BADALA CLASSES CA-INTERMEDIATE
c. Free reserves, revaluation of assets, forex translation reserves
d. Free reserves only
5. Dividend has to be paid by ____________.
a. Cash/Cheque/Dividend Warrant/Direct credit in bank account/issuance of bonus shares
b. Cash/Cheque/Direct credit in bank account/ issuance of bonus share
c. Cash/ Cheque / Dividend warrant/Direct credit in bank account
[Link]/Cheque/Direct cr dit in bank account/ issuance of rights shares
6. Regulation 80 of Model Articles of Association Table F of Companies Act, 2013 provide that
a. Dividend shall not be less than the amount declared by the Board
b. Board of directors cannot declare the dividend.
c. Dividend must be declared out of past years' profits of the company by the Board.
d. Dividend shall not exceed the amount declared by Board.
7. The total amount drawn from such accumulated profits for the purpose of declaration of dividend shall not exceed
10% of __________.
a. Profit After Tax b. Average of last 3 years' Profit After Tax
c. Average of last 3 years of Accumulated Reserves
d. Sum of paid up capital and free reserves as appearing in the latest auited financial statement
8. For the purpose of declaration of dividend out of reserve, company need to withdraw profits from the reserves.
After withdrawal, the balance of reserves should not be lower __________than of its paid-up share capital as
appearing in the latest audited financial statement.
a. 5% b. 10% c. 15% d. 25%
9. According to Section 2(43) of the Companies Act, 2013, "Free reserves" means such reserves which,
as__________ per the balance sheet of a company, are available for distribution as dividend.
a. latest audited b. average of last 3 years audited
c. average of last four quarters (audited or unaudited) d. average of last five years' balance sheet (where the
PAT is positive number and ignore the year in which the PAT is negative)
10. According to Section 123 of the Companies Act,2013, the depreciation is required to be provided as per Schedule.
a. II b. III c. VI d. XIV
11. __________recommends the dividend while final dividend is declared in the meeting.
a. Board; Class b. General; Board c. Board; General d. Class; General
12. Declaration of dividend is ________in general meeting. Resolution to declare dividend can be passed as_______.
a. Ordinary Business; 3/4th majority b. Special Business; Special Resolution
c. Ordinary Business; Ordinary Resolution d. Special Business; >50% Majority
13. Which of the following statements is incorrect with respect to declaration of dividend according to Companies
Act, 2013?
a. Final dividend is declared in the general meeting. Board of Directors have to recommend a dividend.
b. Declaration of dividend is 'Ordinary Business' in general meeting. Resolution to declare dividend can be passed
as 'Ordinary Resolution'.
c. The Company in general meeting, may declare but dividend declared in general meeting may declare dividend
declared in general meeting cannot be less than the dividend recommended by the Board.
d. Board of Directors can declare interim dividend. Dividend includes interim dividend.
14. Which of the following statement(s) is/are incorrect?
a. Dividend can be paid in `kind' e.g. in form of gifts, goods or bonus shares.
b. In case of joint shareholders, dividend can be paid to person whose name is registered first.
c. Payment of dividend is made to another person, if directed by shareholder or joint shareholders in writing.
d. Both (a) and (c)
15. Which of the following statement(s) is/are incorrect?
a. Section 123 of Companies Act, 2013 states that dividend shall be paid only to the registered shareholder or to
his order or to his bankers.
b. Dividend can be paid to transferee, if the registered holder of shares authorizes company in writing to pay the
dividend to transferee.
c. In case of share warrant, dividend can be paid to bearer of the share warrant or his bankers.
d. None of the above
16. Which of the following statements is correct with respect to declaration of dividend according to Companies Act,
2013?
a. Final dividend is declared in the Board meeting. Board of Directors have to recommend a dividend.
b. Declaration of dividend is `Ordinary Business' in general meeting. Resolution to declare dividend can be passed
as 'Ordinary Resolution',
c. The company in general meeting, may declare dividends but dividend declared in general meeting cannot be
less than the dividend recommended by the Board.
d. Interim dividend is declared in the General Meeting. Dividend includes interim dividend.
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BADALA CLASSES CA-INTERMEDIATE
17. Honorable Limited did not declare the dividend in its AGM. However, the Board of the Directors of the company
are keen to declare the dividend for the a company. The company can declare the dividend in subsequent ___.
a. Audit Committee Meeting b. Annual General Meeting only
c. Extraordinary General Meeting d. Webcast on the website of the company
18. Usually,______________ dividend is announced when major part of current financial year (say at least 8-9
months or so) is over and trends in profitability are good.
a. Final b. Interim c. Preference share d. Cumulative preference share
19. According to the Section 123 of the Companies Act, 2013, interim dividend shall be declared by considering
________generated during financial year till the quarter preceding the date of declaration of interim dividend.
a. Sales b. Profits c. Contribution d. Expenses
20. According to Section 123 of the Companies Act, 2013, if company is making loss in current financial year up to
end of quarter immediately preceding the date of declaration of interim dividend,
a. The company cannot declare interim dividend.
b. The interim dividend shall not be higher than average dividends declared by company during immediately
preceding three financial years.
c. The company can declare interim dividend but for next three years, the company cannot declare any dividend.
d. The company can declare interim dividend with the prior approval of Central Government.
21. Which of the following provisions regarding dividend declaration and payment are applicable to interim dividend
also?
i. Depositing amount in separate bank account
ii. Payment within 30 days
iii. Transfer of unpaid dividend to special account
iv. Interest for late payment
v. 'Transfer to Investor Protection Fund after seven years
vi. Penalty for non-payment
a. i to iii only b. i to v only c. iii to vi only d. i to vi all
22. Interim dividend should be declared after considering
i. Depreciation for full year and earlier years' arrears
ii. Dividend on preference shares
iii. Taxation
iv. Anticipated losses during the year
v. Appropriation and transfers to statutory reserves.
a. i. to iii only b. ii to iv only c. iii to v only d. to v all
23. Section', 123 of Companies Act, 2013 states that dividend shall be paid only to the registered share-holder or to
his order or to bankers, and shall not be payable except in ___________.
a. Cash b. Kind c. Stock d. Securities
24. In absende of specific provision in Articles of Association, dividend shall be_______irrespective of the amount
paid 'up on that share.
a. Per share b. As a fixed % of the face value of the share
c. Fixed arbount every year. d. All of the above (a), (b) and (c)
25. Section 123 of the Companies Act, 2013 provides that the dividend must be paid by _______
i. Cash ii Cheque iii. Dividend" warrant iv. Electronic manner
v. Kind, i.e. gifts, goods or bonus shares.
a. Any of the above i to v b. Any of the i to iv c. Any of the i, iii and iv d. Only iv
26. In absence of any direction given to the company by the shareholder, in case of joint shareholders, the cheque or
warrant of dividend should be sent to_________in the register of members.
a. The holder First named b. The holder last named
c. Any of the joint holders provided the communication is sent to all the shareholders about the payment.
d. Legal representatives of the holder first named
27. According to Section 123 of the Companies Act, 2013, as soon as dividend is declared (final or interim), the
amount of dividend should be deposited by the company in a separate bank account within________days from
date of declaration of dividend. The amount de-posited will be used for payment of dividend (including interim
dividend).
a. Five b. Seven c. Fourteen d. Thirty
28. As soon as dividend is declared, the amount of dividend (Final dividend or Interim dividend as the case may be)
shall be deposited in a separate bank account within 5 days from date of declaration of dividend. However, this
provision is not applicable to __________.
a. Government company b. 100% Government Company
c. Private company d. Both (a) and (c)

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BADALA CLASSES CA-INTERMEDIATE
29. Jyoti Limited has just declared dividend for their equity shareholders. As required by the Companies Act, 2013
provision under Section 123, the company has deposited the amount of dividend in a separate account within 5
days, it is to be used only for payment of dividend. Company is required to pay dividend within days.
a. Five b. Seven c. Fourteen d. Thirty
30. Liability of dividend arises only when dividend is____________, which is in the_____ meeting.
a. Proposed; board b. Declared; general c. Proposed; general d. Declared; board,
31. Dividend warrants are posted by the company to last known addresses of shareholders. Often, dividend is not
claimed in some cases, as the shareholder might have changed his address or has expired, or for some other
reasons. If dividend is not paid or not claimed within 30 days from date of declaration, the company must transfer
the unclaimed amount to a separate account titled _________.within seven days from date of expiry of period of
30 days - section 124 of Companies Act, 2013.
a. Current liabilities account b. Unpaid account of the company
c. Investor protection fund d. Proposed dividend account
32. Under Section 124 of the Companies Act, 2013, The company shall, within a period of _____days of making any
transfer of an amount to the unpaid dividend account, place the names, their last known addresses and the unpaid
dividend to be paid to each person on the website of the company if any).
a. Five b. Seven c. Sixty d. Ninety
33. Under Section 124(4) of the Companies Act, 2013, unclaimed dividend amount should be retained in the separate
account for___________ years. If dividend is claimed within these years, the amount can be paid out of such
separate account. And under Section 124(5) of the Companies Act, 2013, if dividend is not claimed within
_____years from date of transfer to the Unpaid Dividend Account, the amount, along with interest accrued should
be paid to Government in ________
a. Seven; Seven; Transferred Dividend Account b. Seven; Seven; Investor Education and Protection Fund
c. Five; Seven; Investor Education and Protection Fund
d Five; Five; Current Liabilities and Provisions Account
34. The following statements relate to the unpaid dividend account and investor protection fund under the Companies
Act, 2013. Identify the incorrect statement from the following.
a. The unclaimed dividend amount should be retained in the separate account for seven years. If dividend is
claimed within seven years, the amount can be paid out of such separate account.
b. If dividend is not claimed within twelve years from date of transfer to the Unpaid Dividend Account, the
amount, along with interest accrued should be paid to Government in 'Investor Education and Protection Fund'.
c. If dividend is not paid or claimed for seven consecutive years or more, the corresponding shares will also be
transferred in name of Investor Education and Protection Fund, along with statement containing prescribed details.
d A shareholder can claim the dividend (even after seven years) from the Investor Education and Protection Fund.
He can also claim shares transferred to the Fund (even after seven years).
35. In which of the following case(s), non-payment of dividend in 30 days is not considered as default?
a. Where dividend could not be paid by operation of any law.
b. Where there is dispute regarding right to receive dividend.
c. Both of the above d. None of the above
36. In which of the following case(s), non-payment of dividend in 30 days is not considered as default?
a. Where directions given by shareholder for payment of dividend .cannot be complied with and same has not
been communicated to him.
b. Where directions given by shareholder for payment of dividend cannot be complied with and same has
communicated to him.
c. Both of the above d. None of the above
37. In which of the following case(s), non-payment of dividend in 30 days is not considered as default?
a. Where the dividend has been lawfully adjusted by the company against any sum due to the company from the
shareholder.
b. Where failure to pay the dividend or post dividend warrant was not due to any default on part of the company.
c. Both of the above d. None of the above
38. Company is required to transfer the shares to IEPF Authority (fund) for which dividend has remained unpaid or
unclaimed _______.
a. for any five years out of any last seven years b. for consecutive 7 years
c. for consecutive 5 years d. for any seven years out of any last ten years
39. Company should inform to the concerned share-holders whose shares are due for transfer to IEPF Authority
________months before due date of transfer of shares.
a. 2 b. 3 c. 4 d6
40. Company should inform to the concerned share-holders whose shares are due for transfer to IEPF Authority three
months before due date of transfer of shares. Notice to this effect shall be
a. published in one English newspaper b. regional daily newspaper
c. uploaded on website of company d. all of the above
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BADALA CLASSES CA-INTERMEDIATE
41. Accounts of IEPF shall be audited by_____
a. CAG b. Auditor c. Statutory auditor d. Inspector of Central Government
42. Who is authorised to constitute the Investor Education and Protection Fund under the Companies Act, 2013?
a. Central Government b. Respective State Governments of each State
c. Registrar of Companies d. Parliament

ANSWER CHAPTER -8 DECLATION AND PAYMENT OF DIVIDEND

1. B 2. A 3. A 4. D 5. C 6. D 7. D 8. C 9. A 10. A
11. C 12. C 13. C 14. A 15. D 16. B 17. C 18. B 19. B 20. B
21. D 22. D 23. A 24. A 25. B 26. A 27. A 28. B 29. D 30. B
31. B 32. D 33. B 34. B 35. C 36. B 37. C 38. B 39. B 40. D
41. A 42. A

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -9 ACCOUNTS OF COMPANIES
1. Every company shall prepare and keep at its _______ books of account and other relevant books and papers and
financial statement for every financial year which give a true and fair view of the state of the affairs of the
company, including that of its branch office or offices, if any.
a. Every board, meeting b. Every AGMs c. Registered Office d Promoters' homes
2. The books of account of the company should be able to explain transactions effected at_______
a. Registered office b. Branches c. Both (a) and (b) d. Neither (a) nor (b)
3. ABC Limited is incorporated recently. Chief Accountant of the company briefs the promoters to keep the books of
account, relevant papers and financial statements of the company at its registered office. The company should
maintain its books of account as per________ basis of accounting and according to _______system of accounting.
Basis Accounting System
a. Accrual Double Entry System
b. Cash Single Entry System
c. Either Accrual or Cash Double Entry System
d. Either Accrual or Cash, Single Entry System
4. According to Section 2(12) of the Companies Act, 2013, "Book and paper" and "book or paper" include books of
account, deeds, vouchers, writings, documents, minutes and registers maintained on paper or in electronic form.
a. True b. False because it includes all other things except minutes and registers
c. False because it excludes the documents in electronic form,
d. False because it cannot include deeds and other writings.
5. XYZ Limited is an incorporated public limited closely held company, carrying out textiles business. You are the
CFO of the company and the company seeks the advice from you regarding maintenance of books of account.
You are advising them that books of account of every company relating to a period of not less than ________
years immediately preceding the financial year, along with relevant vouchers shall be maintained according to
Section 128 of Companies Act, 2013.
a. Five b. Seven c. Eight d. Twelve

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6. Jobanputra and Sons is a public limited company registered in India. They maintain their books of ac-count,
documents, vouchers and other records in the electronic form. Which of the following details the company should
intimate to Registrar on an annual basis at the time of filing financial statement?
I. The name of the service provider
II. The internet protocol address of service provider
III. The location of the service provider (wherever applicable)
IV. Where the books of account and other books and papers are maintained on cloud, such address as
provided by the service provider
a. i, ii and iii b. ii, iii and iv c. i, iii and iv d. i, ii, iii and iv
7. According to the provisions of the Companies Act. 2013, back-up of the books of account and other books and
papers of the company maintained in electronic mode, including at a place outside India, if any, shat be
kept______ on a periodic basis.
a. Servers physically located in any part of the world, however, the records must be accessible at least by cloud
based service in India
b. In servers physically located in India, America, UK or Europe
c. In servers physically located in India
d. In servers physically located in any part of the world except the natural calamity prone zones
8. Rule 4 of the Companies (Management and Ad-ministration) Rules, 2014 provides that summarised returns of the
books of account of the company kept and maintained outside India shall be sent to the registered office at
_________intervals. These shall be kept and maintained at the____of the company and kept open to directors for
inspection.
a. Monthly, Communication address b. Quarterly, Registered office address
c. Semi-annually, Communication office address d. Annually, Registered office address
9. When the Board of Directors decide to keep accounting records of a company other than the registered office of
the company, the intimation to ROC, in electronic return should be given in
a. Form AOC-1 b. Form AOC-5 c. Form AOC-7 d. Form AOC-15
10. According to Section 128 of the Companies Act, 2013, the accounts of the company must be maintained
according to double entry system of accounting. The Government accounts and accounts of small traders are
maintained on the basis of________of accounting.
a. Double entry system b. Single entry system c. Cash system d. None of the above
11. Which of the following are NOT the part of 'Financial Statement' as per the Companies Act, 2013?
i. Balance sheet at the end of the financial year
ii. A profit and loss account, or in the case of a company carrying on any activity not for profit, an income
and expenditure account for the financial year
iii. Cash flow statement for the financial year
iv. A statement of changes in equity
v. Notes to Accounts vi Auditors' Report
vi. Directors' Report
vii. Management Discussion and Analysis
a. i to v b. vi, vii and viii c. v, vi, vii and viii d. iv to viii
12. According to the proviso to Section 2(40) of the Companies Act, 2013. The financial statement, with respect to
One Person Company, small company and dormant company, may not include the_____
a. Balance sheet b. Profit and loss account c. Cash flow statement d. Notes to accounts
13. Financial statement need not contain in _______case of start-up private company.
a. Balance sheet b. Profit and loss account c. Cash flow statement d Notes to accounts
14. Financial statements are required to be prepared in the form prescribed in the Schedule _____of the Companies
Act, 2013.
a. Schedule II b. Schedule III c. Schedule VI d. Schedule XIV
15. The Financial Statement of a company governed by special Act like Insurance Act, Banking Regulation Act,
Electricity Act or the special law governing that company shall be as specified
a. By Central Government order by notification in official gazette____
b. In Ind AS c. In the special Act governing such class of companies
d. By financial bill every year
16. Companies Act, 2013 requires all companies to have their financial year ending on 31st March. However, on an
application made by a company, which is a holding company or a subsidiary or associate company of a company
incorporated outside India and is required to follow a different financial year for consolidation of its accounts
outside India, the_______ may, if it is satisfied, allow any, period as its financial year, whether or riot that period
is a year.
a. National Company Law Tribunal b. Central Government
c. Registrar of Companies d. Ministry of Corporate Affairs

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17. The financial statement must be accompanied by ______ giving details as prescribed under section 134 of
Companies Act, 2013.
a. Report of the Board of Directors b. Management Discussion and Analysis
c. Financial Highlights d. Past 3 years of comparable financial statements
18. A signed copy of every financial statement, including consolidated financial statement, if any, are required to be
issued, circulated or published along with a copy each of _________.
i. Any note forming part of the financial statement
ii. Previous 5 years' comparable financial statements
iii. The auditor's report
iv. Copy of prospectus
v. The Board's report as required under section 134(3) or section 134(7) of Companies Act, 2013
a. i to v - all b. ii, iii and iv c. i, ii, iii and iv d. i, iii and iv
19. In case of Section 8 (licensed Le. non-profit) companies, the financial statement shall be sent not less than_____
days in advance.
a. Seven b. Fourteen c. Twenty-one d. Forty-five
20. As per section 136(1) of Companies Act, audited financial statement can be given less than 21 clear days before
date of general meeting, with consent of majority in number entitled to vote and who represent not less than_____
of such part of paid up share capital of the company as gives a right to vote at meeting.
a. 20% b. 51% c. 75% d. 95%
21. Section 101 of the Companies Act, 2013 relates with _________ to be sent 21 days in advance to the members
while Section 136(1) of the Companies Act, 2013 relates with_______ to be sent not less than 21 days before the
date of the meeting.
a. Notice of the AGM; Financial Statements b. Financial Statements; Notice of the AGM
c. Notice of the Board Meeting; Notice of the AGM d. Notice of the Board Meeting; Financial Statements
22. Consolidation of financial statement shall be made in accordance with provisions of
a. Schedule VI of the Companies Act, 2013 b. Schedule DI-A of the Companies Act, 2013
c. Schedule Ili of the Companies Act, 2013 d. Schedule II of the Companies Act, 2013
23. The provisions of consolidated financial statements are not applicable in case of companies having only associate
companies and Joint Ventures but no subsidiaries.
a. True
b. False because it is applicable to companies having associate companies, joint ventures as well as subsidiaries
c. False because it is not applicable to companies having subsidiaries and associates but no joint ventures.
d. False because it is not applicable to companies having subsidiaries only.
24. Section 129(3) of the Companies Act, 2013 provides that in addition to consolidated statement, a statement
containing salient features of financial statement of its subsidiary/subsidiaries and associate company or
companies is required to be attached. The statement of salient feature of financial statement of company's
subsidiary r subsidiaries, associate company or companies and joint venture or ventures shall be in_______.
a. Format prescribed in Schedule In b. Form AOC 1
c. Form MGT 15 d. Form MTG 34
25. From the following, who are eligible to request inspection of the documents (financial statements, director's
report, auditor's report, notes to accounts etc. and other related documents) at the company's registered office
during business hours, under Section 136(2) of the Companies Act, 2013?
a. Shareholders Debenture Holders, Trustees b. Shareholders, Trustees, Suppliers, Customers
c. Shareholders, Supliers, Customers, Income Tax Officers
d. Debenture, Holders, Suppliers, Other Creditors, Customers
26. Companies which are required to comply with Companies (Indian Accounting Standards) Rules, 2015 are
required to submit abridged financial statement in ____________.
a. Form AOC-1 b. Form AOC-1A c. Form AOC-3 d. Form AOC-3A
27. Financial statements can be sent to members and others through post or courier or hand delivery per section 20(2)
of Companies Act, 2013. However a listed company or a public company whose net worth is more than Rs.
______and turnover of more than Rs.______, financial statement can be sent by - (a) e-mail if shares are in form
and email id is registered with depository (b) e-mail if shares are in physical form and member has positively
consented in writing for receiving by email or (c) by post, courier or hand delivery.
a. Ten Crores; Hundred Crores b. Five Crores; Fifty Crores
c. One Crore; Ten Crores d. Fifty Lakhs; Five Crores
28. Copy of financial statements (including consolidated financial statement in case of holding company), shall be
filed with Registrar of Companies within days from the date when the accounts were duly adopted at the annual
general meeting of the company. All documents which are required to be annexed or attached to the financial
statement must be filed.
a. Fourteen b. Twenty c. Thirty d. Forty-five

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BADALA CLASSES CA-INTERMEDIATE
29. The financial statements are required to be filed in _______with prescribed fees with ROC once adopted in the
General Meeting, within 30 days. The form in this regard should be pre-certified by CA in whole time practice.
a. Form AOC 1 b. Form AOC 3 c. Form AOC 3A d. Form AOC 4
30. Where the AGM of a company for any year has not been held, the financial statements along with the documents
required to be attached under section 137, duly signed along with the statement of facts and reasons for not
holding the AGM shall be filed with the Registrar within_____days of the last date before which the annual
general meeting should have been held.
a. 30 b. 60 c. 90 d.180
31. According to Section 137 of the Companies Act, 2013, In case of One Person Company, financial statement along
with annexes and attachments should be filed with ROC within days from close of financial year.
a. 30 b. 60 c. 90 d. 189
32. Which of the following is valid for delay in financial statements with ROC?
i. Company is punishable with fine
ii. MD and every officer who is in default is punishable with imprisonment or fine or both.
iii. The delayed submission of financial statements with ROC makes them invalid.
iv. The director of a company which has not submitted financial statements of continuous 3 ye s becomes
disqualified for a period of next 5years.
v. No -filing of financial statements is a continuous offense.
a. All except iv b. All except v c. All except iii d. All
33. If it appears to the directors of a company that (a) The financial statement of the company; or (b) Report of the
Board, do not comply with the provisions of section 129 section 134 of Companies Act, 2013, they may prepare
revised financial statement or a revised report after taking approval from NCLT in respect of any of the
___preceding financial years.
a. Three b. Five c. Seven d. Eight
34. If it appears to the directors of a company that (a) The financial statement of the company; or (b) Report of the
Board, do not comply with the provisions of section 129 or section 134 of Companies Act, 2013, they may prepare
revised financial statement or a revised report in respect of any of the three preceding financial years. Which of
the following is not correct regarding this type revision?
a. Such revision can be done after obtaining approval of the NCLT on an application made by the company in
prescribed form and manner.
b. A copy of the order passed by the NCLT shall be filed with the Registrar.
c. NCLT shall give notice to the Central Government and the income-tax authorities and shall take into
consideration the representations before passing any order for amending financial statements.
d. Such revised financial statement or report can be prepared or filed maximum three times a financial year
35. Which of the following statements is not true with respect to appointment of the internal auditor of a company?
a. The internal auditor may or may not be an employee of the company. Thus, external person can be appointed as
internal auditor.
b. Chartered Accountant or. Cost Accountant can be appointed as internal auditor even if he does not have
Certificate of Practice.
c. Appointment of internal auditor can be made only in General meeting.
d. Prescribed class or classes of companies as may be prescribed shall be required to appoint an internal auditor,
who shall either be a Chartered Accountant or a Cost Accountant, or such other professional as may the decided
by the Board to conduct internal audit of the functions and activities of the company.
36. Which of the following statements is not true with respect to appointment of the internal auditor of a company?
a. Appointment of internal auditor can be only in Board meeting and not by circular resolution. However, if such
appointment is made by circular resolution due to urgency, Board can ratify the same.
b. Chartered Accountant or Cost Accountant can be appointed as internal auditor only if he holds certificate of
practice.
c. A Cost Auditor of a company cannot be appointed as Internal Auditor of a company even if he is appointed as
Cost Auditor only for some of the products of the company.
d. A statutory auditor of the company cannot be appointed as Internal Auditor.
37. __________can inspect the books only during business hours, while _______have right of access at all times.
a. The directors; the ROC b. The ROC; the directors
c. The directors and ROC; the auditors d. The auditors; the directors and ROC
38. The National Financial Reporting Authority (NF'RA) will consist of a chairperson, who will be a person of
eminence and having expertise in accountancy, auditing, finance, business administration, business law,
economics or similar disciplines, to be nominated by the Central Government and such other members not
exceeding __________as may be prescribed.
a. Twelve b. Fourteen c. Fifteen d. Twenty
39. Who will appoint a secretary and other employees of the NFRA for the efficient performance of functions?
a. Central. Government b. Chairman of the NFRA c. NCLT d. Parliament
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BADALA CLASSES CA-INTERMEDIATE
40. The National Financial Reporting Authority (NFRA) is required to maintain its books of account and other
records. The accounts of NFRA shall be audited by ______ and the report shall be forwarded annually to
a. A practicing CA; the chairman of the NFRA b. A practicing CA; Central Government
c. C&AG; the chairman of the NFRA d. C&AG; Central Government
41. Section 132 of the Companies Act, 2013 provides that NFRA shall prepare annual report for each financial year in
prescribed form giving a full account of its activities during the financial year. The Annual Report of NFRA and
audit report of C&AG will be laid before
a. Lok Sabha b. Rajya Sabha c. Each House of Parliament d. President ‘of the country
42. The Institute of Chartered. Accountants of India publishes from time to time 'Guidance Notes' on various subjects
for guidance of professional members. These are__ in nature.
a. Mandatory b. Recommendatory c. Notified d. Obligatory
43. The ICAI has issued 20 Statements of Standard Auditing Practices (SAP). These are______ for auditors.
a. Mandatory b. Recommendatory c. Voluntary d. Gazette

44. The requirements of balance sheet and P&L account as prescribed in Schedule III are not applicable to
a. Listed companies having turnover less than Rs. 500 Crores
b. Listed companies having subsidiaries, affiliates or associates outside India
c. Insurance companies, banking companies and telecom companies
d. Insurance companies, banking companies and companies engaged in generation or supply of electricity.
45. Which of the following statement(s) is/are correct with reference to provisions under Companies Act, 2013?
a. The maintenance of books of account and other books and papers in electronic mode is mandatory for certain
class of companies.
b. Books of account or other relevant books or papers maintained in electronic mode shall remain accessible in
India so as to be usable for subsequent use.
c. The maintenance of books of account and other books and papers in electronic mode is permitted and it is
optional. d. Both (b) and (c)
46. The expression "Books and Papers" has been defined in section 2(12) of Companies Act, 2013 includes
i. Accounts ii. deeds iii. vouchers iv. writings v. documents
a. (i), (ii), (iii), (iv) & (v) b. (i), (ii), & (iv) c. (ii), (iii), (iv) & (v) d. (i) , (ii), (iv) & (v)
47. Where an investigation has been ordered in respect of a company,_________ may direct that the books of account
may be kept for such period longer than 8 years, as it may deem fit and give directions to that effect.
a. High Court b. Central Government c. Inspector d. SEBI
48. The person responsible to take all reasonable steps to secure compliance by the company with the requirement of
maintenance of books of account etc. shall be_______
a. Managing Director b. Whole-Time Director, in charge of finance
c. Chief Financial Officer d. All of the above
49. Where financial statements of the company do not comply with the applicable accounting standards, the company
shall disclose
a. The deviation from the accounting standards b. The reason for such deviation
c. Financial effects arising out of such deviation d. All of the above
50. The company shall also attach along with its financial statement, a separate statement containing the salient
features of the financial statement of its subsidiary or associate or joint venture in
a. XBRL b. Form AOC-1 c. Form AOC-2 d. Form AOC-3
51. Which authority can apply to the Tribunal to re-open books of account of Company?
a. The Central Government b. The Income-tax authority’s
c. The Securities and Exchange Board of India (SEBI) d. Either (a) or (b) or (c)
52. The re-opening and recasting of financial statements is permitted in case, when
a. The relevant earlier accounts were prepared in a fraudulent manner
b. The affairs of the company were mismanaged during the relevant period, casting a doubt on the reliability of
financial statements
c. Either (a) or (b) d. Neither (a) nor (b)
53. Which of the following statement(s) is/are correct with reference to provisions under Companies Act, 2013?
a. A company may also collaborate with other companies for undertaking projects or programs or CSR activities
in such a manner that the CSR Committees of respective companies are in a position to report separately on such
projects or programs.
b. The CSR projects, programs, or activities undertaken in India or out of India shall amount to CSR Expenditure.
[Link] of the above [Link] of the above
54. Which of the following statement(s) is/are correct with reference to provisions under Companies Act, 2013?
a. The CSR projects, programs, or activities that benefit only the employees of the company and their families
shall be considered as CSR activities in accordance with section 135 of the Act.

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BADALA CLASSES CA-INTERMEDIATE
b. Contribution of any amount directly or indirectly to any political party under section 182 of the companies Act,
2013 shall not be considered as CSR activity.
C. Both of the above d. None of the above
55. Who is entitled to get copy of financial statement of company ?
a. Equity shareholder b. Preference shareholder c. Both of the above d. None of the above
56. The One person company shall file the copy of financial statement duly adopted by its members within a period of
a. 90 days from the closure of financial year b. 180 days from the closure of financial year
c. 90 days from the date of adoption d. 180 days from the date of adoption
57. Which of the following companies are not required to submit cash flow statement as part of financial statements
under section -2 (40) of companies Act, 2013 ?
(a) One person company, shall company, Dormant company (b) Private company shall, Closely held public
company
(c) Subsidiary company, Government company, one person company.
(d) Dormant company, one person company Foreign company.
58. In cases of One person company financial statement along with annexes and attachments should be filed with
ROC within ___________days from close of financial year.
a. 60 b. 90 c. 120 d. 180

Answer key CHAPTER -9 ACCOUNTS OF COMPANIES

1. C 2. C 3. A 4. A 5. C 6. D 7. C 8. B 9. B 10. B
11. B 12. C 13. C 14. B 15. C 16. A 17. A 18. D 19. B 20. D
21. A 22. C 23. A 24. B 25. A 26. D 27. C 28. C 29. D 30. A
31. D 32. C 33. A 34. D 35. C 36. B 37. C 38. C 39. A 40. D
41. C 42. B 43. A 44. D 45. D 46. A 47. B 48. D 49. D 50. B
51. D 52. C 53. A 54. B 55. C 56. B 57. A 58. D

CA-INTERMEDIATE
LAW – CORPORATE & OTHER LAWS
CHAPTER -10 -Audit and Auditors
1. Which of the following companies are required to appoint internal auditor to conduct internal audit
of books of account of the company?
a. Listed company b. Unlisted public company having paid up capital of Rs. 50 Cr. or more
during preceding financial year.
c. Unlisted public company having outstanding deposits of Rs. 25 Cr. or more at any time during
preceding financial year.
[Link] of the above
2. In case of public or private company having turnover of Rs.___________ Cr. or more during
preceding financial year shall require to appoint internal auditor to conduct internal audit of books of
account.
a. 50 b. 100 c. 150 d. 200
3. In case of public or private company having outstanding loans or borrowing from Bank or Public
Financial Institutions exceeding Rs._________ Cr. or more at any time during preceding financial
year shall require to appoint internal auditor to conduct internal audit of books of account.
a. 50 b. 100 c. 150 d. 200
4. In case of Government companies, auditor is appointed for _______at time.
a. one year b. two years c. three years d. five years
5. Who can be appointed as auditor of Company under Companies Act, 2013?
a. Indian LLP b. Foreign LLP c. Both of the d. None of the it and Auditors
6. A person or a firm who , whether directly or indirectly, has business relationship of prescribed with
_____Cannot be appointed as statutory auditor of company.
a. Subsidiary company b. Holding company of company
c. Associate company of company d. All of the above
7. With reference to disqualifications of appointment of auditor, 'Business relation means any
transaction entered into for a commercial purpose, except commercial transaction which are in the

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nature of professional services permitted to be rendered by an auditor or audit firm under the
_________ and the rules or the regulations made there under.
a. Companies Act, 2013 b. Chartered Accountants Act, 1949
c. Both (a) and (b) d. Income-tax Act, 1961
8. A person who has been a convicted by a court of an offence involving fraud nd a period of has not
elapsed from the da e of such conviction.
a. 10 months b. 5 years c. 7 years d. 10 years
9. The first auditor of a company (other than a Government company), shall be appointed by the
______within________days from the date of registration of the company.
a. Board of directors; 15 days b. Board of directors; 30 days
c. Promoters; 30 day d. Promoters; 15 day
10. The first auditor of a company (other than a Government company), shall be appointed by the Board
of Directors within 30 days from the date of registration of the company. If Board fails to appoint
such auditor, then appointed shall be made by_____ within____
a. Members; 60 days b. Members; 90 days
c. CAG; 30 days d. CAG; 60 days
11. Auditor is appointed at first annual general meeting for, period of 5 years (i.e. first AGM to sixth
AGM). Which of the following event is possible and appropriate under provisions of Companies Act,
2013 with reference to provisions of Auditor?
a. Ratification of appointment of auditor every year is not required
b. Auditor can be removed before his tenure after following prescribed procedure.
c. Auditor can resign earlier d. All of the above
12. Appointment of auditor shall be intimated in ___________.
a. Form ADT 1 b. Form ADT 2 c. Form ADT 3 d. Form ADT 4
13. ABC Ltd is Government company. The casual vacancy of auditor is required to be filled in by
within ________
a. C&AG; 15 days b. C&AG; 30 days c. Board of Directors; 30 days d. Members; 15 days
14. ABC Ltd. is Government Company. C&AG do not fill casual vacancy of auditor within 30 days.
Now, it can be filled by ________of the company in next_______.
a. Board of Directors; 15 days b. Members; 30 days
c. Board of Directors; 30 days d. Members; 15 days
15. In the case of Government Company, if first auditor is not appointed by C&AG and board,
_____shall appoint auditor within_______
a. Members; 60 days b. Central Government; 60 days
c. Members; 30 days d. Central Government; 30 days
16. In case of Government companies, auditor/firm of auditors is appointed for ________.
a. One year b. Two years c. Three years d. Not more than, two years
17. In case of Government company, if there is casual vacancy, the casual vacancy is required to be
filled in by_________ within_______
a. C&AG; 15 day, b. C&AG; 30 day c. Board of Directors; 30 days d. Members; 15 Lays
18. In case of Government company, if there is casual vacancy, the casual vacancy is required to be
filled in by C&AG within 30 days. If the casual vacancy is not filled within 30 day, it can be filled
by __________of the company in next____________
a. C&AG; 15 days b. C&AG; 30 days c. Board of Directors; 30 days d. Members; 15 ays
19. Which of the fo owing option of fixing remuneration of auditor at the time of his appointment is not
as per provisions of Companies Act, 2013?
a. Remuneration is fixed at general meeting by passing resolution
b. Remuneratioi is fixed by MD of company who is authorized of general meeting
c. Remuneration is fixed by Board of company on authority of general meeting
d Remuneration is fixed by Director without authority of general meeting
20. Remuneration of first auditor shall be fixed by ___________.
a. Board of Directors b. Committee o Directors
c. Central Government d. ICAI
21. Auditor appointed should submit certificate that_________
a. He is eligible for appointment and is not disqualified for appointment under the Act. Chartered
Accountants Act, 1949 and rules made there under.
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BADALA CLASSES CA-INTERMEDIATE
b. Proposed appointment is as per term provided under the Act.
c. Proposed appointment is within the limits laid down by or under authority of the Act.
d. All of the above
22. The remuneration of firm of auditors of Government company shall be fixed _____
a. Randomly b. In the general meeting
c. By Board of directors d. Central Government
23. The company shall make application to Central Government for removal of auditors before expiry of
his term __________in with fees within 30 days of resolution passed by Board of Directors.
a. Form ADT 1 b. Form ADT 2 c. Form ADT 3 d. Form ADT 4
24. The company shall make application to Central Government for removal of auditors before expiry of
his term in Form ADT 2 with fees within_____ of resolution passed by
a. 15 days; Board of Directors b. 30 days; Board of Directors
c. 15 days; Members at General Meeting d. 30 days; Members at General Meeting
25. As per Companies Act, 2013, NCLT can remove auditor of company ________.
a. Suo motu b. On application from Central Government
c. On application from any person concerned d. Either (a) or (b) or (c)
26. An auditor, whether individual or firm, against whom final order has been passed by NCLT under
section 140(5) of Companies Act, 2013 shall not be eligible to be appointed as an auditor of any
company for a period of _______from the date of passing of the order.
a. 2 years b. 3 years c. 5 years d. 7 years
27. When auditor resign, he should file________ to Registrar of Companies
a. Form ADT 1 b. Form ADT 2 c. Form ADT 3 d. Form ADT 4
28. If the company under audit is a holding company, the Auditor of holding company can access
accounts of
a. Subsidiary Company b. Associate company
c. Company under audit d. All of the above
29. If auditor, in the course of performing his duties as auditor, has reason to believe that an offence in-
volving fraud is being or has been committed against ____, he shall immediately report the matter to
authority.
a. Company by its officer b. Company by its employee
c. Company by outsider d. Both, (a) and (b)
30. Audit4 shall report fraud to company to Central Government in_______ , if amount involved in fraud
is Rs. 1 crore or more.
a. Form ADT 1 b. Form, ADT 2 c. Form' ADT 3 d. Form 'ADT 4
31. If fraud is less than Rs. 1 crore, the auditor shall report the fraud to audit committee or Board within
two days. ails of such frauds reported by Auditors shall be disclosed in_______
a. Board's report b. Corporate Governance Report
c. Auditor's Certificate d. None of the above
32. Report for fraud sent by auditor in Form ADT 4 to_________
a. Secretary, Ministry of Corporate Affairs b. Registrar of Companies
c. Regional Director d. NCLT of respective jurisdiction where registered office of company is
situated
33. Report for fraud sent by auditor in Form ADT 4 to Secretary, Ministry of Corporate Affairs _____
a. In sealed envelope by registered post with AD
b. On his biter head duly signed, indicating his member number
c. Either (a) or (b) d. Both (a) end (b)
34. In respect, of companies regulated by special Act, the Central Government shall, consult the_______
before issuing order for cost audit in respect of any class of companies.
a. Regulatory body constituted under special Act
b. Regulatory body constituted under Companies Act
c. RBI d. Comptroller & General of India
35. Cost Audit can be done by a
a. Cost Accountant b. Firm of cost accountants
c. Statutory auditor d. Either (a) or (b)
36. ______ of the company appoints the Cost Accountant or firm of cost accountants and his
remuneration will be fixed by _______ in the prescribed manner.
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BADALA CLASSES CA-INTERMEDIATE
a. Board of directors; members b. Members; Board of directors
c. Board of directors; Nomination and remuneration committee
d. Members; Nomination and remuneration committee
37. Notice of appointment of cost auditor shall be filed with Registrar in_______ with fees, within
_________of meeting.
a. Form CRA 2; 15 days b. Form CRA 1; 15 days
c. Form CRA 2; 30 days d. Form CRA 2; 15 days
38. Appointment of cost auditor shall be made within ______of commencement of financial year.
a. 60 days b. 90 days c. 120 days d. 180 days
39. The Cost Audit Report shall be submitted in__________
a. Form CRA 2 b. Form CRA 1 c. Form CRA 3 d. Form CRA 4
40. When cost audit report is submitted by cost auditor?
a. Within 180 days from closure of financial year b. Within 120 days from closure of financial
year
c. Within 180 days from commencement of calendar year
d. Within 120 days from commencement of calendar year
41. The Board of Directors shall submit full information and explanation to every reservation or
qualification in Cost Audit Report, within _________, in __________
a. 30 days; Form CRA 3 b. 30 days; Form CRA 4
c. 60 days; Form CRA 3 d. 60 days; Form CRA 4
42. Cost auditor is required to submit his report to
a. Board of Directors b. Members Of company
c. Central Government d. Registrar of Companies
43. Which of the following statement(s) is/are not correct with reference to the provisions of Companies
Act, 2013?
a. All companies must keep proper books of account, while keeping cost accounting records is
compulsory only in case of specified companies.
b. Financial Audit and cost audit are compulsory every year 'for all companies
c. Both of the above d. None of the above
44. Which of the following company shall compulsorily appoint internal auditor?
a. Every private company having turnover of one hundred crore rupees or more during the preceding
financial year
b. Every private company which has outstanding loans or borrowings from banks or public financial
institutions exceeding one hundred crore rupees or more at any point of time during the preceding
financial year.
c. Both of the above d. None of the 'above
45. Which of the, following statement(s) is/are not correct?
a. In case of foreign branch, the foreign auditor should be qualified to act as auditor as per law of that
country or by the company's auditor.
b. In case of branch of bank outside India, the company auditor may be given access only to copies
of books and account of the branch which are transmitted to the principal office of the company in
India.
c. Both of the above d. None of the above
46. In case of Government companies, auditor/ firm of auditors is appointed only for one year and not
for five years.
a. True b. False, in Case of Government companies, the auditor/firm of auditors is appointed
only for three years and not for five years.
c. False, in Case of Government companies, the auditor/firm of auditors is appointee only for two
years and not for five years.
d. False. in Case of Government companies, the auditor/firm of auditors is appointed for five years.
47. As per Section 139(8)(ii) of the Companies Act, 2013. In case of Government company, if there is
casual vacancy, the casual vacancy is required to be filled in by C&AG within _______days.
a. 30 b. 60 c. 90 d. 120
48. In the case of a Government company_________, is required to direct the auditor the manner in
which accounts should be audited. The auditor is required to submit a copy of his audit report to
the____ .
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BADALA CLASSES CA-INTERMEDIATE
a. C&AG; C&AG b. C&AG; Ministry of Finance
c. Ministry of Finance; Ministry of Finance d. Board of Directors; C&AG
49. According to Section 143(6)(a) of the Companies Act, 2013, with respect to a Government
Company, the C&AG shall within __________days from the date of receipt of the audit report, have
a right to conduct any supplementary audit of the company's accounts. Such audit can be done by
person/sauthorised by him. Such authorised person/s have the same rights and obligations as the
auditor who has submitted the report.
a. Forty b. Sixty c. Ninety d. One-twenty
50. ________may direct to conduct cost audit in respect of companies engaged in the production of such
goods or providing such services and have a net worth or turnover as may be prescribed.
a. Central Government b. MCA c. NCLT d. State Government
51. CARO, 2016 is not applicable to______
a. Banking company b. Insurance company c. Private company d. Both (a) and (b)
52. CARO, 2016 is not applicable to ________
a. Section 8 company b. One person company
c. Small company d. All of the above
53. As far as financial statements audit is concerned, apart from the statutory audit done by the Chartered
Accountants under the Companies Act, 2013, a Government Company i$ also subject to
a. Cost audit b. Secretarial audit c. Management audit d. Government audit

Answer key :- CHAPTER -10 -Audit and Auditors

1. D 2. D 3. B 4. A 5. A 6. D 7. C 8. D 9. B 10. B
11. D 12. A 13. B 14. C 15. A 16. A 17. B 18. C 19. D 20. A
21. D 22. B 23. B 24. B 25. D 26. C 27. C 28. D 29. D 30. D
31. A 32. A 33. D 34. A 35. D 36. A 37. C 38. D 39. C 40. A
41. B 42. A 43. B 44. B 45. D 46. A 47. A 48. A 49. B 50. A
51. D 52. D 53. D

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