(CA Inter)Jan 27/Sep26

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

16 G Ltd. (a company having CSR Committee as per the provision of Section 13 of the Companies Act, 2013) decides to spend and utilize half of the amount of Corporate Social Responsibility on the activities for the benefit of all the employees of G Limited and the remaining half of the amount of Corporate Social Responsibility on the activities for the benefit of family members of employees of G Limited As per the provision of Companies Act, 2013 this would mean that:- (a) Total Amount spent on Corporate Social Responsibility Activities by G Limited for that financial year (b) No amount spent on Corporate Social Responsibility Activities by G Limited for that financial year (c) Half amount spent on Corporate Social Responsibility Activities by G Limited for that financial year (d) Half amount spent on Corporate Social Responsibility Activities and remaining half amount spent on Other Activities by G Limited for that financial year

15 Compute the minimum amount the company (Natraj Limited) is required to spend on account of Corporate Social responsibility year 2022-2023, if during the financial years 2019-2020, 2020-2021 and 2021-2022 net profits are 30 crore, 25 crore and ` 32 crore respectively.

13 Victory Limited was incorporated in January 2015. How much expenditure Victory Limited shall ensure to spend in pursuance of its Corporate Social Responsibility Policy: (a) The company shall ensure to spend in every financial year, at least 2% of the average gross profits of the company made during the 2 immediately preceding financial years. (b) The company shall ensure to spend in every financial year, at least 2% of the average net profits of the company made during the 3 immediately preceding financial years. (c) The company shall ensure to spend in every financial year, at least 1% of the average net profits of the company made during the 2 immediately preceding financial years. (d) The company shall ensure to spend in every financial year, at least 1% of the average net profits of the company made during the 3 immediately preceding financial years.

12 The Corporate Social Responsibility Committee of the board shall consist of: (a) Three or more directors out of which at two directors shall be Independent Director (b) Three or more directors out of which at least one director shall be Independent Director. (c) Three or more directors and all should be Independent Directors (d) Three or more directors with condition of not a single director should be Independent Director

11 The company X plans to cover its skilled as well as semi-skilled workers of its units under medical health insurance plan, for which the company X will bear the expenses. Will this expenditure be permissible under CSR activities as per the provisions of the Companies Act, 2013: (a) only expenditure on skilled workers is allowed (b) expenditure on both skilled and semi- skilled workers is allowed (c) Resolution to be passed in board meeting before incurring this expenditure and in the board report it must be mentioned, so that the same will be permissible under CSR activities (d) such expenditure is not permissible under eligible CSR activities

10 Pratham Limited has decided to spend 40 lakhs on project of CSR. The average net profit of the company is 10 crores. But due to some reasons, company was able to spend only 30 lakhs. Now what will be the option for the company for the rest 10 lakhs. (a) Penal provision will be applicable for unspent amount of ` 10 lakhs. (b) No penal provision but explanation is required in Board report for not spending ` 10 lakhs (c) No penal provision (d) The company is required to transfer the amount to separate fund.

8 During the half year ended September 2020, the board of directors (BOD) of Gold Leaf Limited has made an application to the Tribunal for revision in the accounts of the company for the financial year ended on March 2018. Further during the year ended March 2021, the BOD has again made an application to the Tribunal for revision in the board’s report pertaining to the year ended March 2020. You are required to state the validity of the acts of the Board of directors. (a) The act of the BOD is valid only to the extent of application made for revisions in accounts as board’s report are not eligible for revision. (b) The act of the BOD is valid as application made for revision in the accounts and board’s report pertains to two different financial year. (c) The act of the BOD is invalid as the law provides for only one time application to be made in a financial year for revision of accounts and boards report. (d) The act of the BOD is invalid as to the application made for revision in accounts pertains to a period beyond 2 years immediately preceding the year 2021. The application made for revision in the Board report is however valid in law

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