(CA Inter)May26/Sep26

12 The amount accumulated in the Investor Education and Protection Fund shall not be used for: a. refunds in respect of unclaimed dividends, matured deposits, matured debentures, application money due for refund and interest thereon. b. reimbursement of legal expenses incurred in pursuing class action suits under section 37 and 245. c. grants or donation to the Central Government for the purpose of investor’s education and training. d. distribution of any disgorged amount among eligible and identifiable applicants who have suffered losses.

10 Shreyas Mechanics Limited owns a plot of land which was purchased long before. As the property rates are going up, it is decided to revalue the plot at fair value which is moderately ten times the original price, thus resulting in a revaluation profit of 20,00,000. The Board of Directors is keen to utilize 20,00,000 along with free reserves of ` 24,00,000 for declaration of dividend at the forthcoming Annual General Meeting (AGM) to be held on 28th September, 2019. Advise the company. (a) ` 20,00,000 are to be excluded from the distributable profits as the same cannot be utilized towards declaration of dividend. (b) Only 25% of ` 20,00,000 can be utilized as distributable profits towards declaration of dividend. (c) Up to 50% of ` 20,00,000 can be utilized as distributable profits towards declaration of dividend. (d) Up to 60% of ` 20,00,000 can be utilized as distributable profits towards declaration of dividend

9 During the half year ended September 2021, the board of directors (BOD) of New Era Limited has made an application to the Tribunal for revision in the accounts of the company for the financial year ended on March 2019. Further during the year ended March 2022, the BOD has again made an application to the Tribunal for revision in the board’s report pertaining to the year ended March 2021. 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 2022. The application made for revision in the Board report is however valid in law

8 Sumitra Healthcare and Hospitality Limited had issued 9% non-convertible debentures which matured four years back. However, 1000 such debentures of Rs. 100 each are still remaining unclaimed and unpaid even after the maturity. State the period after which the company needs to transfer them to Investor Education and Protection Fund (IEPF) if they remain unclaimed and unpaid.

6 Mr. Guru bought 40,000 shares of Real Consultancy Services (RCS) of face value 10 each out of his savings. On such shares, the final call of Rs. 2 is due but unpaid by Mr. Guru. In the meantime, RCS declared dividend at a rate of 15%. Regarding un-paid call money by Mr. Guru, in light of dividend due to him from RCS, state which of following the statements is correct? (a) Dividend cannot be adjusted against the unpaid call money (b) The dividend of Rs. 48,000 can be adjusted against unpaid call money (c) The dividend of Rs. 48,000 can be adjusted against unpaid call money, only if consent is given by Mr. Guru. (d) The dividend of Rs. 64,000 can be adjusted against unpaid call money, even if consent is not given by Mr. Guru