(CA Inter)May26/Sep26

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?

6 Shri Limited (a company having CSR Committee as per the provision of Section 135 of the Companies Act, 2013) decides to spend and utilize the amount of Corporate Social Responsibility on the activities for the benefit of all the employees of Shri Limited. As per the provision of Companies Act, 2013 this would mean that:- (a) This is the total amount spent on Corporate Social Responsibility activities by Shri Limited for that financial year (b) No amount spent on Corporate Social Responsibility activities by Shri Limited for that financial year (c) Only Half of the total amount spent, shall be considered to be spent on Corporate Social Responsibility activities by Shri Limited for that financial year (d) Only the amount that has been spent on the employees having salary of Rs. 20,000 per month or less, shall be considered be considered to be spent on Corporate Social Responsibility activities by Shri Limited for that financial year

4 Feel Rich Co. Ltd. Having its registered office at New Delhi, is a subsidiary of a German company named Richman Company limited. The financial year of the parent/holding company ends on 31st December every year. The subsidiary company intends to follow a different financial year for consolidation of its accounts with its parent company, situated outside India. For doing so it is required to take prior permission of the competent authority. For the purpose from the following who will be this competent authority

2 Excellent Art Private Limited, has a paid up capital of Rs.50 crore, Turnover of Rs.25 crore and borrowing of Rs.25 crore and outstanding deposits of Rs.30 crore. Decide if the Company needs to comply with internal audit requirements under the Act? (a) No. The provisions of Internal audit are not applicable on private companies. (b) Yes. Company is having Paid up capital of Rs.50 Crore and outstanding deposits more than Rs.25 crore. (c) No. Because the borrowings are less than Rs.100 crore and Turnover is less than Rs.200 crore (d) None of the above

1 Amex limited is a public company having a net- worth of Rs. 950 crores, turnover of 200 crores (the company is just 5 years since the date of its incorporation) during the immediately preceding financial year, has to constitute a Corporate Social Responsibility (CSR) Committee. It has 9 Directors (A, B, C, D, E, F, G, H and I). Further, Mr. F, G, H and I are independent directors. Out of the following statements which statement is correct: (a) CSR committee may constitute of A, B and C (b) CSR committee may constitute of A, B and D (c) CSR committee may constitute of A, F and G (d) There is no need to constitute a CSR committee as the turnover is just 200 crores during the immediately preceding financial year

🌟Company Law MCQ's🌟 Chapter 9: Accounts of Companies