(CA Inter)Jan 27/Sep26

9 NTW Ltd is listed on National Stock Exchange and has a turnover of INR 4500 crores. NTW Ltd has 12 subsidiaries, 3 associate companies and 5 joint venture companies (collectively referred to as NTW Group). AKW & Co LLP is the statutory auditor of NTW Ltd. NTW Ltd wants to appoint AKW as the statutory auditors for entire NTW Group. In respect of this, please advise the management of NTW Group. (a) AKW & Co LLP can be appointed as statutory auditors for only 10 companies of NTW Group. (b) AKW & Co LLP can be appointed as statutory auditors for only 20 companies of NTW Group. (c) AKW & Co LLP can be appointed as statutory auditors for all the companies of NTW Group. (d) AKW & Co LLP can be appointed as statutory auditors for all the companies of NTW Group provided they meet the limits requirements as per the Companies Act 2013

8 BSP Ltd appointed XPP & Co LLP as their statutory auditors for the year ended 31 March 2018 on 18 June 2018, as per Section 139(8) of the Companies Act 2013, to fill the casual vacancy caused by resignation of previous statutory auditors to hold office till the conclusion of next Annual General Meeting (AGM) of BSP Ltd. BSP Ltd is listed with Bombay Stock Exchange and National Stock Exchange. BSP Ltd is covered under auditors rotation requirements and wants to re-appoint XPP & Co LLP at their next AGM. Please advise (a) XPP & Co LLP can be re-appointed for a term of five consecutive years at the AGM and after that can be considered for re-appointment for another five consecutive years. (b) XPP & Co LLP can be re-appointed for a term of four consecutive years at the AGM and after that can be considered for re-appointment for another five consecutive years. (c) XPP & Co LLP can be re-appointed for a term of five consecutive years at the AGM. (d) XPP & Co LLP cannot be re-appointed at the AGM.

7 Advise whether the auditor appointed by a private limited company with paid up capital of Rs.30.00 Crore, in the following cases are valid for the financial year 2017-18:- (a) Amanpreet (an Individual auditor) who has been the auditor since the Financial Year 2011-12 (b) Firm MGA & associates was appointed as auditor in the Financial Year 2011-12. (c) Firm MGA & associates, who completed 10 years continuously as auditor in company. Now company wants to appoint VGA & associates wherein Mr. V is a partner who is also partner is MGA & Associates. (d) The provisions of rotation of auditor are not applicable on private companies

🌟Company Law MCQ's🌟 Chapter 10: Audit And Auditors

20 As per the provisions of the Companies Act, 2013, which of the following statement is correct with respect to the surplus arising out of the CSR activities: a. The surplus cannot exceed five percent of total CSR expenditure of the company for the financial year. b. The surplus shall not form part of the business profit of a company c. The surplus cannot exceed 10 percent of total CSR expenditure of the company for the financial year. d. The surplus shall form part of the business profit of a company

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

18 Compute the minimum amount that Modern Furniture Limited is required to spend on account of Corporate Social responsibility year 2022-2023. MFL was incorporated in August 2020. Net-profit made during the financial years 2020-2021 and 2021-2022 are ₹ 20 crore, and ₹ 38 crore respectively. a) ₹ 76 lac b) ₹ 1.16 crore c) ₹ 58 lac d) Since the company has not completed the period of three financial years since its incorporation, hence no CSR spending is required.