Legal Aspects of Finance - Combined

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer

Question Section 24 provides bar to entertain suits by the court for recovery of
wages in so far as the sum claimed falls within which of the following categories :-
Correct Answer Amount adjudged is not due to penalty , For which any
application claim has already been presented , Direction of claim already given'
Your Answer For which any application claim has already been presented ,
Direction of claim already given' , Amount adjudged is not due to penalty
True/False
Question A temporary workman is not entitled to bonus though he works for a
few days in the organisation.
Correct Answer False
Your Answer False
Select The Blank

Question A person who stands for directorship other than retiring director has to
give notice to the company at least ________ before the date of general meeting.
Correct Answer 14 days
Your Answer 15 days
Multiple Choice Single Answer

Question In case of cost audit, the report of cost auditor has to be submitted to
central government, within :-
Correct Answer 120 Days
Your Answer 45 Days

Question During the course of audit, auditor is supposed to check :-
Correct Answer Transaction Vouchers , Cash and Bank balances , Fixed assets
register
Your Answer Transaction Vouchers , Fixed assets register , Register of creditors
True/False
Question The national labour commission on labour has described the assessing
of the act as landmark in the history of labour legislation in the country.
Correct Answer True
Your Answer True

Question A director of a company can be removed by :-
Correct Answer Ordinary resolution
Your Answer Ordinary resolution
Select The Blank

Question Every ________ Company has to hold Statutory Meeting of the
members.
Correct Answer Public
Your Answer Limited
True/False
Question The independent director is a supplier of a service provider of the
company.
Your Answer False

Question SIA/FIPB approval is necessary in :-
Correct Answer 13 specified activities , Sector limits sought exceeded , Small
scale sector items
Your Answer 13 specified activities , Sector limits sought exceeded , Small scale
sector items
True/False
Question Only individuals can be appointed as directors of the company.
Correct Answer True
Your Answer True
True/False
Question In case of Postal Ballot, result is announced through post.
Your Answer True

Question Briefly describe the scheme of the bonus act :-
Correct Answer To impose statutory liability upon every employer to pay bonus
to employees , To define principle of payment of bonus as per the prescribed
formula , To provide payment for minimum and maximum bonus and link the
scheme for set off and set on
Your Answer To impose statutory liability upon every employer to pay bonus to
employees , To define principle of payment of bonus as per the prescribed formula ,
To provide payment for minimum and maximum bonus and link the scheme for set
off and set on
Select The Blank

Question Articles of Association are rules for ________.
Correct Answer Internal management
Your Answer Internal management

Question The Balance Sheet should be in the form set out in Part I of :-
Correct Answer Schedule VI
Your Answer Schedule VI
Select The Blank
Question ________ of the company has absolute discretion in regard to inclusion
or non inclusion of any matter in the minutes.
Correct Answer Chairman
Your Answer Share-holders who attended the meeting

Question Debentures can be :-
Correct Answer Redeemable , Convertible , Party convertible and redeemable
Your Answer Party convertible and redeemable , Redeemable , Convertible
Select The Blank

Question Subject to other provisions of this act every employer shall be bound to
pay every employee in respect of the accounting year commencing on any day in the
year ________.
Correct Answer 1979
Your Answer 1979
Match The Following

Question Correct Answer Your Answer
Indian company borrowings Redemption more than 3 years Redemption more than
3 years
Borrowing by NRE Loan less than 3 years Regulated ROI
Borrowings in Rupees Regulated ROI Loan less than 3 years
NCD issue Public issue Public issue

Question Object Clauses are divided into :-
Correct Answer Main Object , Object incidental or ancillary to Main , Other
Objects
Your Answer Main Object , Object incidental or ancillary to Main , Other
Objects

Question The notice of the meeting be sent to all the directors at their :-
Correct Answer Usual residential address
Your Answer Usual postal address
Select The Blank

Question A statement of all transactions with the related parties including the
basis shall be placed before the ________.
Correct Answer Audit committee
Your Answer Audit committee
Select The Blank

Question First AGM should be held within ________ from closure of financial
year.
Correct Answer 9 months
Your Answer 6 months
True/False
Question An apprentice is not entitled to bonus.
Correct Answer True
Your Answer True

Question Company has to make application to central government, in case of
appointment of managing director is not made accordance with part I & II of
schedule XIII, within :-
Your Answer 30 days

Question Preference shares can be :-
Correct Answer Cumulative redeemable , Non- cumulative redeemable ,
Participatory
Your Answer Cumulative redeemable , Non- cumulative redeemable ,
Participatory

Question What is the main purpose of the payment of wages act 1936?
Correct Answer Ensure payment of wages to the employed , Prevent
unauthorised deductions , Prevent arbitrary fines
Your Answer Ensure payment of wages to the employed , Prevent unauthorised
deductions , Prevent arbitrary fines

Question Following Resolutions must be passed by Postal Ballot :-
Correct Answer Alteration in Object Clause , Buy-back of own shares , Variation
in rights attached to class of shares
Your Answer Alteration in Object Clause , Buy-back of own shares , Variation in
rights attached to class of shares

Question In calculating the limit of all the companies which companies are
excluded?
Correct Answer Foreign companies , Private Companies , Non Profit making
companies
Your Answer Foreign companies , Non Profit making companies , Public limited
companies
Question Borrowings for Indian companies are for :-
Correct Answer In Rupees , On repatriation , Non-repatriation
Your Answer In Rupees , On repatriation , Non-repatriation
True/False
Question There can be an Ordinary Resolution for Special business.
Correct Answer True
Your Answer True
True/False
Question Meeting of the board of Directors shall be held at least 4 times in a
year.
Correct Answer True
Your Answer True
Select The Blank

Question Payment of ________ requires registration from RBI.
Correct Answer Royalty
Your Answer Royalty

Question A director has to vacate his office, if he is adjudged as :-
Correct Answer Insolvent
Your Answer Insolvent

Question The representations received for revision or fixation or reverse the rate
of minimum wages by notification in the official gazette are considered by :-
Correct Answer Advisory board
Your Answer Advisory board

Question Number of shareholders entitled to requisition a meeting shall be
carrying
Correct Answer Not less than 10 per cent of voting power
Your Answer Not less than 10 per cent of voting power

Question After incorporation of the company, the first auditor is generally
appointed within :-
Correct Answer One Month
Your Answer One Month
True/False
Question Foreign technical collaborations are permitted.
Your Answer True
True/False
Question Company may have alternate director.
Correct Answer True
Your Answer False

Question The minimum wages act falls under which scope ?
Correct Answer Scope of entry 27 I list III of schedule IV of constitution of India
Your Answer Schedule 9 of section 23

Question Declaration of Compliance with requirements of the Companies Act
Correct Answer Form 1
Your Answer Form 32

Question Company can increase its maximum number of directors, for which
application is required to be made in :-
Correct Answer Form no 24
Your Answer Form no 24

Question Board may by resolution passed at the meeting delegate the powers to
:-
Correct Answer Committee of directors , Managing director , Manager
Your Answer Committee of directors , Managing director , Manager
Select The Blank

Question The uses and applications of the funds raised shall be disclosed to the
audit committee on a ________basis.
Correct Answer Quarterly
Your Answer Quarterly
Select The Blank

Question Authorized dealer may freely open ________ and allow remittance for
import of goods.
Correct Answer Letter of credit
Your Answer Letter of credit
Select The Blank

Question To avoid conflicts of interest, ________ committee would determine the
remuneration packages of the executive directors.
Correct Answer Remuneration
Your Answer Remuneration
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Question
For which activity FDI is not prohibited?
Correct Answer
Insurance
Your Answer
Insurance
Question
Remuneration to the director may be paid :-
Correct Answer
Monthly , Quarterly , Annually
Your Answer
Quarterly , Annually , Monthly
Question
Payment of wages act came into existence :-
Correct Answer
To ensure regular and timely payment of wages to employed persons
Your Answer
Question
To safeguard the interest of the company or its shareholders or the public
interest, the central government, may appoint such number of person as
directors to hold office for a period not exceeding :-
Correct Answer
3 years
Your Answer
3 years
Question
Sole selling agent may be :-
Correct Answer
An Individual , A firm , A Body corporate
Your Answer
Question
When was the factories act passed?
Correct Answer
In 1948
Your Answer
In 1948
Question
Number of shareholders entitled to requisition a meeting shall be carrying
Correct Answer
Not less than 10 per cent of voting power
Your Answer
True/False
Question
Bonus is an ex gratia payment.
Correct Answer
False
Your Answer
False
Question
Compliance Report is signed by :-
Correct Answer
Company Secretary in practice
Your Answer
Question
The responsibility of placing the annual accounts before the AGM is on
Correct Answer
Board of Directors
Your Answer
Board of Directors
True/False
Question
Every company shall keep a register showing the particulars in respect of every
loan or investment made, guarantee given or security provided.
Correct Answer
True
Your Answer
True
Question
Following are the points related to Qualification share that every director has to
take :-
Correct Answer
Within two months of date of appointment , If fails to obtain then he has to resign
from the post , Minimum Share value Rs.5000/-
Your Answer
Minimum Share value Rs.5000/- , If fails to obtain then he has to resign from the
post
True/False
Question
The loan to any body corporate shall be made at the rate of interest not less than
that prevailing bank rate as may be prescribed by Reserve Bank of India.
Correct Answer
True
Your Answer
True
True/False
Question
An independent Director is not an executive director of a Company.
Correct Answer
False
Your Answer
True
True/False
Question
Owned foreign exchange is not permitted.
Correct Answer
False
Your Answer
True
Select The Blank
Question
Copies of annual accounts are to be filed within ________ days from AGM with
ROC.
Correct Answer
30 days
Your Answer
30 days
True/False
Question
A non executive director is not a substantial shareholder of the company.
Correct Answer
True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Bifurcation
Voted for/ against
Chairman
Ordinary resolution
Simple majority
Simple majority
Requisition of members
Not less than 5 % voting power
Not less than 5 % voting power
Special resolution
Form 23
Voted for/ against
Select The Blank
Question
________ shall lay before the AGM, the statement of Income & Expenditure in
place of Profit & Loss a/c.
Correct Answer
Charitable Trust
Your Answer
Charitable Trust
Question
What are the powers of the audit committee?
Correct Answer
To investigate any activity within its terms of reference , To seek information from
any employee , To obtain outside legal or professional advice
Your Answer
To investigate any activity within its terms of reference , To seek information from
any employee , To obtain outside legal or professional advice
Select The Blank
Question
No loan or investment shall be made or guarantee given by company unless
________ is passed at the meeting by the board.
Correct Answer
Resolution
Your Answer
Resolution
Question
Which committees are considered for calculating the limit of the companies
Correct Answer
Audit committees , Remuneration Committee , Shareholders Grievance
Committee
Your Answer
Audit committees , Remuneration Committee , Shareholders Grievance
Committee
Select The Blank
Question
The minimum wages to the obligations created by the convention no 26 of
________.
Correct Answer
International labour organisation
Your Answer
True/False
Question
A temporary workman is not entitled to bonus though he works for a few days in
the organisation.
Correct Answer
False
Your Answer
False
Question
A person can not be appointed as director of the company if :-
Correct Answer
He is found to be of unsound mind , He is declared as an insolvent , He has not
taken qualification shares
Your Answer
Question
A company which restricts the right to transfer its shares is :-
Correct Answer
Private Ltd. Company
Your Answer
Private Ltd. Company
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Shorter notice for AGM

Private Limited Company
ROC
Books of Account
Form 23AA
Form 23AA
Accounting Standards
National Advisory Committee
Question
Preference shares can be :-
Correct Answer
Cumulative redeemable , Non- cumulative redeemable , Participatory
Your Answer
Cumulative redeemable , Non- cumulative redeemable
True/False
Question
Only individuals can be appointed as directors of the company.
Correct Answer
True
Your Answer
True
Question
Director can be appointed without counting the number in :-
Correct Answer
Private limited company , Unlimited company , Charitable association
Your Answer
Charitable association
Question
Who is not entitled to bonus?
Correct Answer
An apprentice , Employee employed through contractors
Your Answer
Employee employed through contractors
Select The Blank
Question
Subject to other provisions of this act every employer shall be bound to pay
every employee in respect of the accounting year commencing on any day in the
year ________.
Correct Answer
1979
Your Answer
1959
Question
To whom does the payment of wages act apply to ?
Correct Answer
Persons employed in any factory
Your Answer
Select The Blank
Question
Under the industrial disputes act 1947________is an appropriate government.
Correct Answer
Central government
Your Answer
Central government
Question
When was the minimum wages act passed ?
Correct Answer
1948
Your Answer
1948
True/False
Question
Retiring director may be eligible for reappointment.
Correct Answer
True
Your Answer
True
Question
In which case did the Bombay high court observe the general purpose of the
act?
Correct Answer
Arvind mills ltd case
Your Answer
True/False
Question
After completion of Ordinary business other business is transacted at Extra
ordinary General Meeting.
Correct Answer
False
Your Answer
False
Select The Blank
Question
________shall certify that they have reviewed the balance sheet and profit and
loss account.
Correct Answer
CEO
Your Answer
CEO
Select The Blank
Question
________ includes legal representative of deceased employer.
Correct Answer
Employer
Your Answer
Employer
Select The Blank
Question
Any payment in respect on ________ can be deducted from the wages of an
employed person.
Correct Answer
Fidelity guarantee bond
Your Answer
Select The Blank
Question
A member shall have right to apply for operations and mismanagement of the
company provided application is made by members not less than ________ or
by the members holding not less than one tenth of total number of shares in the
share capital of the company.
Correct Answer
100
Your Answer
100
Select The Blank
Question
A statement of all transactions with the related parties including the basis shall
be placed before the ________.
Correct Answer
Audit committee
Your Answer
Audit committee
Question
The board of directors shall exercise these powers only at board meetings :-
Correct Answer
Power to make calls on shares , Power to issue debentures , Power to borrow
money
Your Answer
money
Question
Explanatory Statement should be annexed to Notice for :-
Correct Answer
Special business
Your Answer
Special business
Question
What is the board procedure ?
Correct Answer
Meeting to be held 4 times in a year , Should not be a gap of more than 4
months between 2 meetings , Minimum information should be made available
Your Answer
Meeting to be held 4 times in a year , Should not be a gap of more than 4
months between 2 meetings , Minimum information should be made available
Question
Conditions on borrowings by PIO are :-
Correct Answer
Non-repatriation basis , Loan by inward remittance , Account by lender in India
Your Answer
Current Account , Non-repatriation basis , Loan by inward remittance
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Select The Blank
Question
Copies of annual accounts are to be filed within ________ days from AGM with
ROC.
Correct Answer
30 days
Your Answer
90 days
True/False
Question
Sectoral cap on investment by person resident outside India on Mass rapid
Transport is 50%.
Correct Answer
False
Your Answer
True
Select The Blank
Question
If an employer derives profit in any of the first ________ years he has to pay
bonus for that year.
Correct Answer
5
Your Answer
5
Question
A director has to vacate his office, if he is adjudged as :-
Correct Answer
Insolvent
Your Answer
Insolvent
Question
Define an employee under section 2 (13) :-
Correct Answer
Person employed with salary exceeding Rs 3500
Your Answer
True/False
Question
Authorized dealer is required to avail license under the exim policy in force.
Correct Answer
True
Your Answer
True
Question
The earlier "Fast Track" investments route has been replaced by?
Correct Answer
Automatic
Your Answer
Automatic
Question
The quorum for the board meeting is one third of the total strength of the board or
two whichever is :-
Correct Answer
More
Your Answer
More
Question
Correct Answer
Your Answer
To pay wages after a years time
Select The Blank
Question
The recommendations of audit committee relating to financial management shall
be ________.
Correct Answer
Binding
Your Answer
Binding
Select The Blank
Question
The minimum wages to the obligations created by the convention no 26 of
________.
Correct Answer
Your Answer
Question
Borrowings for Indian companies are for :-
Correct Answer
On repatriation , Non-repatriation , In Rupees
Your Answer
In Rupees , On repatriation , On Payments made
Question
What do you mean by wages?
Correct Answer
Remuneration by way of salaries , Allowances , Expressed in terms of money
Your Answer
Question
Correct Answer
Your Answer
Question
What is the minimum salary under which the persons are covered in this act?
Correct Answer
Less than Rs 1600
Your Answer
Less than Rs 1600
Question
Define an employed person under section 2 of the act.
Correct Answer
Includes legal representative of a deceased employed person
Your Answer
Question
Following are the points related to Qualification share that every director has to
take :-
Correct Answer
Minimum Share value Rs.5000/- , Within two months of date of appointment , If
fails to obtain then he has to resign from the post
Your Answer
Minimum Share value Rs.5000/- , Within two months of date of appointment , If
fails to obtain then he has to resign from the post
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Ordinary Resolution
Reduction of capital
Special Resolution
Appointment of Managing Director

Ordinary Resolution
Board of Directors
Special Resolution
True/False
Question
A General Meeting may also be called by giving shorter notice than 21 days.
Correct Answer
True
Your Answer
True
Question
Board's Report shall include :-
Correct Answer
Dividend recommended , Financial position of the company , Amounts
transferred to Reserves
Your Answer
Dividend recommended , Taxes paid , Financial position of the company
Select The Blank
Question
As per section 5 in case of railways if the persons employed is less than
________ the wages shall be paid before the expiry of 7th day.
Correct Answer
1000
Your Answer
1000
Question
The Balance Sheet should be in the form set out in Part I of :-
Correct Answer
Schedule VI
Your Answer
Schedule VI
True/False
Question
Wages includes any remuneration payable under any award or settlement
between the parties or order of court.
Correct Answer
True
Your Answer
True
Question
When was the minimum wages act passed ?
Correct Answer
1948
Your Answer
1948
True/False
Question
Foreign technical collaborations are permitted.
Correct Answer
False
Your Answer
True
True/False
Question
Wages includes any travelling allowance for travel concession.
Correct Answer
False
Your Answer
False
Question
Companies Act presently implemented and adhered by companies is :-
Correct Answer
Companies Act, 1956
Your Answer
Companies Act, 1956
Question
Correct Answer
Your Answer
Select The Blank
Question
To avoid conflicts of interest, ________ committee would determine the
Correct Answer
Remuneration
Your Answer
Board members
Question
A director of a company can be removed by :-
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
The loan to any body corporate shall be made at the rate of interest not less than
that prevailing bank rate as may be prescribed by Reserve Bank of India.
Correct Answer
True
Your Answer
True
Question
A director can hold place of profit by :-
Correct Answer
Special resolution
Your Answer
Special resolution
Select The Blank
Question
Articles of Association are rules for ________.
Correct Answer
Internal management
Your Answer
Internal management
Question
The board of directors shall exercise these powers only at board meetings :-
Correct Answer
money
Your Answer
money
Question
The period for realization for export of goods from the date of shipment is at :-
Correct Answer
Six month
Your Answer
Six month
Question
Accounting Standards are issued by :-
Correct Answer
Institute of Chartered Accountants
Your Answer
Question
Describe in brief what does the term wages include?
Correct Answer
Remuneration under any award , Settlement between the parties or order of
court , Overtime
Your Answer
court , Overtime
Question
What is the main purpose of the payment of wages act 1936?
Correct Answer
Ensure payment of wages to the employed , Prevent unauthorised deductions ,
Prevent arbitrary fines
Your Answer
Select The Blank
Question
________means all remuneration expressed in terms of money.
Correct Answer
Wages
Your Answer
Wages
Question
The Indian company may issue bonus shares to its non resident shareholders
subject to :-
Correct Answer
Held by non resident shareholder , As per acquisition , In the Form of FC-GPR
Your Answer
Held by non resident shareholder , As per acquisition , In the Form of FC-GPR ,
Willingness of company
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948
Section 3 of wages act

Every employer responsible for payment to employed persons
Question
Board may by resolution passed at the meeting delegate the powers to :-
Correct Answer
Committee of directors , Managing director , Manager
Your Answer
True/False
Question
Meeting of the board of Directors shall be held at least 4 times in a year.
Correct Answer
True
Your Answer
True
Question
Who has not prescribed particular set of documentation for current account
remittances?
Correct Answer
RBI , Central Govt.
Your Answer
RBI , Central Govt.
True/False
Question
the organisation.
Correct Answer
False
Your Answer
False
Question
Which person is responsible for he payment of wages act ?
Correct Answer
Managers
Your Answer
Managers
Select The Blank
Question
Multimodal ________ making remittance to their agents abroad.
Correct Answer
Transport operators
Your Answer
Transport operators
Score Card
Registration
200404214
Number:
Name: Manpreet Malhotra
Subject: Legal Aspect Of Finance
Assignment Statu
18/03/2006
s As On:
Result for this Assignment
Assignment Date
17/03/2006
Number of Correct Questions

37
Number of Skipped Questions

10
Number of Wrong Questions

10
Total Questions attempted

57
Total Marks obtained

78 Out of 100.
Result
Pass
Click here to view the list of attempted question and answers.
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True/False
Question
Company can not issue shares with differential voting/ dividend
rights.
Correct Answer
False
Your Answer
False
Select The Blank
Question
________ of the company has a right to take inspection of the books
of account.
Correct Answer
Any Director
Your Answer
Any Director
Select The Blank
Question
________ is one of the critical matter which should be decided by
the postal ballot.
Correct Answer
Corporate restructuring
Your Answer
Appointment of directors
True/False
Question
There should be a gap of more than 4 months to have the meeting
of the board of directors.
Correct Answer
False
Your Answer
True
True/False
Question
Every company shall have a qualified and independent audit
committee.
Correct Answer
True
Your Answer
True

Question
Every member of a company limited by shares and holding any
equity share capital therein shall have :-
Correct Answer
Right to vote
Your Answer
Right to vote
Question
What does salary or wage include?
Correct Answer
Dearness allowance
Your Answer
Overtime
Question
Retiring director shall be deemed to be reappointed unless :-
Correct Answer
He has expressed his unwillingness to be re-appointed , He is
disqualified for appointment , Resolution for reappointment has
been put to vote & lost
Your Answer
He has expressed his unwillingness to be re-appointed , He is
disqualified for appointment , Resolution for reappointment has
been put to vote & lost
True/False
Question
Every company has to inform ROC about the place where it keeps
books of account.
Correct Answer
False
Your Answer
False
True/False
Question
Company may have alternate director.
Correct Answer
True
Your Answer
True
Select The Blank
Question
To avoid conflicts of interest, ________ committee would determine
the remuneration packages of the executive directors.
Correct Answer
Remuneration
Your Answer
Remuneration
Question
Define an employee under section 2 (13) :-
Correct Answer
Your Answer
Question
Current Account transactions are permitted if payment is made out
of :-
Correct Answer
EEFC Account , RFC Account
Your Answer
Current Account , EEFC Account , Cash Credit Account
Question
How would you define salary or wage?
Correct Answer
All remuneration other than in respect of overtime work of the work
done in such employment
Your Answer
All remuneration other than in respect of overtime work of the work
True/False
Question
A director is not required to take qualification share.
Correct Answer
False
Your Answer
False
Question
If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer
Vacated
Your Answer
Vacated
Select The Blank
Question
The form should be filled within ________ days from the date of
execution of document.
Correct Answer
30 days
Your Answer
30 days
Select The Blank
Question
Sweeping powers such as search and arrest contained in Foreign
Exchange ________ Act.
Correct Answer
Control
Your Answer
Control
Question
The Name availability issued by ROC is valid for :-
Correct Answer
Six months
Your Answer
No limit
Match The Following
Question
Correct Answer
Your Answer
Cost auditor
A cost accountant, who is suppose to conduct cost audit of the
company.
A cost accountant, who is suppose to conduct cost audit of the
company.
Audit Report
Opinion on the examination of books of accounts
Opinion on the examination of books of accounts
Auditor
A person who conducts the audits
A person who conducts the audits
Qualified for audit

Eligible to conduct the audit
Eligible to conduct the audit
Match The Following
Question
Correct Answer
Your Answer
Dividend balancing
Over 7 years from production
Over 7 years from production
Investment cap 26%

Insurance
Insurance
Investment cap 100%

Housing & real estate
Housing & real estate
Foreign companies
Project office
Project office
Question
The register in respect of every investment or loan made, contains
Correct Answer
The name of body corporate , The amount, terms & conditions &
purpose of investment or loan or security or guarantee , The date on
which the investment or loan has been made
Your Answer
The name of body corporate , The amount, terms & conditions &
purpose of investment or loan or security or guarantee , The date on
which the investment or loan has been made
Question
The Board is required to give explanation for the adverse remark
given by :-
Correct Answer
Auditor
Your Answer
Auditor
Select The Blank
Question
For private company, number of members do not include ________.
Correct Answer
Employees of company
Your Answer
Employees of company
Question
Accounting Standards are issued by :-
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
Question
WOS are allowed to :-
Correct Answer
Pay royalty , Offshore payment , By automatic route
Your Answer
Pay royalty , Offshore payment , By automatic route
Question
Directors' Responsibility Statement refers to :-
Correct Answer
Going concern , Accounting policies , Accounting standards
Your Answer
Going concern , Accounting policies , Accounting standards
Select The Blank

Question
The management should clearly disclose ________ in auditors
report
Correct Answer
Contingent liabilities
Your Answer
Contingent liabilities
Question
Explanatory Statement should be annexed to Notice for :-
Correct Answer
Special business
Your Answer
Special business
Question
Audit committee shall consist of not less than :-
Correct Answer
Three directors
Your Answer
One director
True/False
Question
The loan to any body corporate shall be made at the rate of interest
not less than that prevailing bank rate as may be prescribed by
Reserve Bank of India.
Correct Answer
True
Your Answer
True
Question
Borrowings for Indian companies are for :-
Correct Answer
In Rupees , On repatriation , Non-repatriation
Your Answer
In Rupees , On repatriation , Non-repatriation
Question
The responsibility of placing the annual accounts before the AGM is
on
Correct Answer
Board of Directors
Your Answer
Board of Directors
Question
Authentication of Annual Accounts means :-
Correct Answer
Correctness of the accounts
Your Answer
Correctness of the accounts
Question
Conditions on borrowings by PIO are :-
Correct Answer
Non-repatriation basis , Loan by inward remittance , Account by
lender in India
Your Answer
Non-repatriation basis , Loan by inward remittance , Account by
lender in India
Question
The Balance Sheet should be in the form set out in Part I of :-
Correct Answer
Schedule VI
Your Answer
Schedule VI
Question
Which committees are considered for calculating the limit of the
companies
Correct Answer
Audit committees , Remuneration Committee , Shareholders
Grievance Committee
Your Answer
Audit committees , Remuneration Committee , Shareholders
Grievance Committee
Question
Single director can sign the annual accounts if :-
Correct Answer
Only one director in India for the time being
Your Answer
Only one director in India for the time being
Question
Object Clauses are divided into :-
Correct Answer
Main Object , Object incidental or ancillary to Main , Other Objects
Your Answer
Main Object , Object incidental or ancillary to Main , Other Objects
Question
Board of directors have to take consent of general meeting for :-
Correct Answer
Sale, lease or dispose of company's property , Give time to
repayment of debt due by director , Contribute to charitable funds
exceeding Rs 50000/- or 5% of average net profits
Your Answer
Sale, lease or dispose of company's property , Give time to
repayment of debt due by director , Filling of vacancies
True/False
Question
The independent director is a supplier of a service provider of the
company.
Correct Answer
False
Your Answer
False
Select The Blank
Question
Liability clause can be found in ________.
Correct Answer
Memorandum of Association
Your Answer
Articles of Association
Question
In each board meeting director is paid by remuneration, which is
known as :-
Correct Answer
Sitting fees
Your Answer
Meeting fees

Question
Maximum fine which can be levied for default in placing accounts
before AGM is :-
Correct Answer
Rs. 50,000
Your Answer
Rs. One lac
Question
The auditor shall inquire :-
Correct Answer
Whether transactions of the company which are represented merely
by book entries are not prejudicial to the interest of the company or
members , Whether loans & advances made by the company have
been shown as deposits , Whether personal expenses have been
charged to revenue account
Your Answer
Whether transactions of the company which are represented merely
by book entries are not prejudicial to the interest of the company or
members , Whether loans & advances made by the company have
been shown as deposits , Whether personal expenses have been
Question
Compliance Report is signed by :-
Correct Answer
Your Answer
True/False
Question
Meeting of the board of Directors shall be held at least 4 times in a year.
Correct Answer
True
Your Answer
True
Question
Company can take loan from :-
Correct Answer
Banks , Financial Institutions , Debenture Holders
Your Answer
Financial Institutions , Debenture Holders , Banks
Question
Correct Answer
Managers
Your Answer
Managers
Select The Blank
Question
It is advisable to close the financial year on ________.
Correct Answer
31st March
Your Answer
31st March
Question
Deductions are authorized under which section?
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Question
Correct Answer
In 1948
Your Answer
In 1948
Select The Blank
Question
The minimum wages act came in force in the year________.
Correct Answer
1948
Your Answer
1948
Question
Correct Answer
court , Overtime
Your Answer
court , Overtime
True/False
Question
Articles of Association is not required to be stamped if Memorandum is
adequately stamped.
Correct Answer
False
Your Answer
False
Question
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
There can be an Ordinary Resolution for Special business.
Correct Answer
True
Your Answer
True
Question
The earlier "Fast Track" investments route has been replaced by?
Correct Answer
Automatic
Your Answer
Automatic
Question
The notice of the meeting be sent to all the directors at their :-
Correct Answer
Usual residential address
Your Answer
Usual residential address
Question
A director has to vacate his office, if he is adjudged as :-
Correct Answer
Insolvent
Your Answer
Insolvent
Question
Correct Answer
Your Answer
Question
What does an industrial or other establishment means as per section 2II?
Correct Answer
Tramway service or motor transport service engaged carrying passengers of hire
or reward , Dock wharf jetty , Plantation
Your Answer
True/False
Question
A non executive director is not a substantial shareholder of the company.
Correct Answer
True
Your Answer
False
Question
What is the role of the audit committee?
Correct Answer
Reviewing the company's financial and risk management policies , Review the
annual financial statements , Recommending and appointment of external
auditors
Your Answer
Review the annual financial statements , Recommending and appointment of
external auditors , Reviewing the company's financial and risk management
policies
Question
SIA/FIPB approval is necessary in :-
Correct Answer
13 specified activities , Sector limits sought exceeded , Small scale sector items
Your Answer
13 specified activities , Sector limits sought exceeded , Small scale sector items
Question
Correct Answer
Less than Rs 1600
Your Answer
Less than Rs 1600
Question
Following are the Forms to be submitted to ROC for incorporation of company :-
Correct Answer
Form 32 , Form 29 , Form 1
Your Answer
Form 32 , Form 29 , Form 1
True/False
Question
Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer
False
Your Answer
False
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948

Question
To safeguard the interest of the company or its shareholders or the public
interest, the central government, may appoint such number of person as
directors to hold office for a period not exceeding :-
Correct Answer
3 years
Your Answer
3 years
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
Question
In which case did the Bombay high court observe the general purpose of the
act?
Correct Answer
Your Answer
True/False
Question
Government can authorise for supply of essential commodities at concessional
rates and pay wages in kind.
Correct Answer
True
Your Answer
False
Match The Following
Question
Correct Answer
Your Answer
Qualification share
Minimum number of shares that every director has to take
Minimum number of shares that every director has to take
Director
Employee of the company
Promoter of company
Vacancy
Created due to resignation of director
Created due to resignation of director
Rotation
Specific time interval
Specific time interval
Question
What is computed by the competent authority at concessional rates?
Correct Answer
Cost of living allowance and cash value
Your Answer
Cost of living allowance and cash value
True/False
Question
Retiring director may be eligible for reappointment.
Correct Answer
True
Your Answer
True
Question
Board may by resolution passed at the meeting delegate the powers to :-
Correct Answer
Your Answer
Select The Blank
Question
Under section ________ period in respect of which wages would be paid would
be determined.
Correct Answer
3
Your Answer
3
Question
Preference shares can be :-
Correct Answer
Your Answer
Question
Who is entitled to bonus?
Correct Answer
Temporary workmen , Part time employee , Retrenched employee
Your Answer
Question
Books of account with respect to following are required to be kept :-
Correct Answer
Money received & expended , Sales & purchases of goods , Assets & liabilities
Your Answer
Money received & expended , Sales & purchases of goods , Assets & liabilities
True/False
Question
Wages include any house accommodation, supply of light medical attendance
etc.
Correct Answer
False
Your Answer
False

Question
A person can not be appointed as director of the company if :-
Correct Answer
Your Answer
Select The Blank
Question
The ________ issue shall be by way of public issue.
Correct Answer
NCD
Your Answer
NCD
Question
Correct Answer
Your Answer
Question
During the course of audit, auditor is supposed to check :-
Correct Answer
Transaction Vouchers , Cash and Bank balances , Fixed assets register
Your Answer
Transaction Vouchers , Cash and Bank balances , Fixed assets register
Question
In which of the companies the bonus act is applicable?
Correct Answer
More than 20 persons employed
Your Answer
Select The Blank
Question
For making alterations before ROC, ________ is required.
Correct Answer
Power of Attorney
Your Answer
Power of Attorney
Select The Blank
Question
________means all remuneration expressed in terms of money.
Correct Answer
Wages
Your Answer
Wages
True/False
Question
No person can be appointed as an auditor of the company who is in full time
employment.
Correct Answer
True
Your Answer
True
Question
Number of shareholders entitled to requisition a meeting shall be carrying
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Special Resolution
Special Resolution

Ordinary Resolution
Ordinary Resolution
True/False
Question
Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer
False
Your Answer
False
Select The Blank
Question
The uses and applications of the funds raised shall be disclosed to the audit
committee on a ________basis.
Correct Answer
Quarterly
Your Answer
Quarterly
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors

Books of Account
Form 23AA
Form 23AA
Question
Where does the company publish the compensation philosophy and the
statement entitled compensation in respect of the non executive directors?
Correct Answer
Annual report
Your Answer
Audit report
Question
Which companies have to comply with the provisions of Clause 49 of listing
agreement ?
Correct Answer
Listed Companies
Your Answer
Listed Companies
True/False
Question
Former director can take inspection of books of account for the years when he
was director.
Correct Answer
False
Your Answer
False
Select The Blank
Question
Correct Answer
1000
Your Answer
1000
True/False
Question
Statutory Meeting must be held on a working day.
Correct Answer
False
Your Answer
True
Select The Blank
Question
be ________.
Correct Answer
Binding
Your Answer
Binding
Question
Correct Answer
Your Answer
Question
Current Account transactions include :-
Correct Answer
Payments for foreign Trade , Payments for Interest , Foreign Travel Expenses
Your Answer
Payments for foreign Trade , Payments for Interest , Payments as Loans
Select The Blank
Question
Correct Answer
Employer
Your Answer
Employer
Question
Statutory Report pertains to :-
Correct Answer
Funds raised by the company , Utilisation of funds , Investments made by the
company
Your Answer
Expenses incurred for Statutory Meeting , Funds raised by the company ,
Utilisation of funds
Question
Correct Answer
Insurance
Your Answer
Insurance
Question
How can you compute available surplus under section 5?
Correct Answer
Gross profit less deductions , Direct tax calculated in accordance to provisions of
section 7 in respect to amount equal to gross profits of the employer for
immediately preceding accounting year
Your Answer
True/False
Question
Any gratuity payable on termination of employment is included in wages.
Correct Answer
False
Your Answer
False
True/False
Question
Deductions for income tax, payable by the employed person is permissible.
Correct Answer
True
Your Answer
True
Select The Blank
Question
The Forms 8 &13 should be filed in ________ to ragistrar of companies.
Correct Answer
Triplicate
Your Answer
Duplicate
True/False
Question
A company can be incorporated with the name using words Hindustan, India.
Correct Answer
True
Your Answer
False
True/False
Question
It is not obligatory for the board of directors to lay down the code of conduct for
all the board members.
Correct Answer
False
Your Answer
False
True/False
Question
Correct Answer
True
Your Answer
True
Question
The Document spelling out internal management of the Company is :-
Correct Answer
Your Answer
Question
Who are governed by the payment of wages act?
Correct Answer
Employed persons , Salary less than 1600 per month
Your Answer
True/False
Question
FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer
True
Your Answer
True
Question
For registering certain resolutions, following documents are submitted :-
Correct Answer
Form 23 , Certified copy of resolution , Copy of explanatory statement
Your Answer
Form 23 , Certified copy of resolution , Copy of explanatory statement
Question
Section 24 provides bar to entertain suits by the court for recovery of wages in so
far as the sum claimed falls within which of the following categories :-
Correct Answer
For which any application claim has already been presented , Direction of claim
already given' , Amount adjudged is not due to penalty
Your Answer
Question
Maturity period for USD 5 million scheme is :-
Correct Answer
Three years
Your Answer
Ten years
Question
A person can not be appointed as managing or whole time director in more than
:-
Correct Answer
Two companies
Your Answer
Two companies
Question
Every auditor who has in receipt from the company of the intimation of his
appointment, has to inform Registrar in writing that he has accepted or refused to
accept the appointment within :-
Correct Answer
30 Days
Your Answer
30 Days
Question
Who fixes the compensation to be paid to the non executive directors?
Correct Answer
Board of Directors
Your Answer
Executive Directors
Question
Remittance completely prohibited on :-
Correct Answer
Dividend balancing , Telephone expanses , Interest on funds
Your Answer
Select The Blank
Question
No loan or investment shall be made or guarantee given by company unless
________ is passed at the meeting by the board.
Correct Answer
Resolution
Your Answer
Resolution
True/False
Question
Wages includes the value of any house accommodation or supply of light and
water.
Correct Answer
False
Your Answer
False
Select The Blank
Question
Any payment in respect on ________ can be deducted from the wages of an
employed person.
Correct Answer
Your Answer
Question
A director can hold place of profit by :-
Correct Answer
Special resolution
Your Answer
Special resolution
Select The Blank
Question
Board has power to receive of notice of ________.
Correct Answer
Disclosure of interest
Your Answer
Disclosure of interest
Question
The penalties are levied for which offences done?
Correct Answer
Pay less than minimum wages , Pay less than fixed wages , Contravenes any
rule or order
Your Answer
Pay less than minimum wages , Pay less than fixed wages , Contravenes any
rule or order
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
A statement of all transactions with the related parties including the basis shall
be placed before the ________.
Correct Answer
Audit committee
Your Answer
Audit committee
Question
Who is not entitled to bonus?
Correct Answer
Your Answer
Question
What is the optimum combination of Board of Directors?
Correct Answer
Managing Directors and Secretary
Your Answer
Select The Blank
Question
As per section ________ it is obligatory on every person responsible for
payment.
Correct Answer
4
Your Answer
4
Question
FDI prohibited activities are :-
Correct Answer
Retail trading , Gambling & betting , Housing & real estate
Your Answer
True/False
Question
Every company shall keep a register showing the particulars in respect of every
loan or investment made, guarantee given or security provided.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Select The Blank
Question
If an employer derives profit in any of the first ________ years he has to pay
bonus for that year.
Correct Answer
5
Your Answer
5
Question
Correct Answer
Your Answer
Unlimited company , Charitable association
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
RBI in consultation with ________ regulates the capital transactions.
Correct Answer
Central govt.
Your Answer
Central govt.
Question
Correct Answer
Your Answer
Question
Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer
Reserve Bank of India
Your Answer
Exchange Control Board
Select The Blank
Question
Correct Answer
1948
Your Answer
1948
Select The Blank
Question
be determined.
Correct Answer
3
Your Answer
5
Select The Blank
Question
Correct Answer
Employer
Your Answer
Employer
Question
Correct Answer
Insurance
Your Answer
Insurance
Question
Following Resolutions must be passed by Postal Ballot :-
Correct Answer
Alteration in Object Clause , Buy-back of own shares , Variation in rights attached
to class of shares
Your Answer
Alteration in Object Clause , Buy-back of own shares
Select The Blank
Question
It is the primary ________ of the company to file the documets of creation of
charge.
Correct Answer
Responsibility
Your Answer
Responsibility
Select The Blank
Question
Correct Answer
31st March
Your Answer
31st March
Question
Correct Answer
Vacated
Your Answer
Vacated
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Internal auditor
Doing legal things
Insolvent
A person who is not in a position to pay his dues
Moral turpitude
Doing immoral things
Call on share
Demand of remaining part of share capital value
Select The Blank
Question
For Special Resolution, votes cast in favour of the resolution should be ________
times more than votes cast against the resolution.
Correct Answer
3
Your Answer
3
True/False
Question
Every company shall have a qualified and independent audit committee.
Correct Answer
True
Your Answer
True
Question
Who issues a certificate of compliance of conditions of corporate governance?
Correct Answer
Auditors or company secretaries
Your Answer
Registrar of companies
True/False
Question
water.
Correct Answer
False
Your Answer
False
True/False
Question
the organisation.
Correct Answer
False
Your Answer
True
Question
Public limited company's directors have following conditions :-
Correct Answer
Minimum number is three , Should be individuals , Have sound mind
Your Answer
True/False
Question
Debenture holders are creditors of the company.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
Your Answer
Executive and non executive Directors
Question
If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer
30.6.2006
Your Answer
30.6.2006
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors

ROC
Books of Account
Form 23AA
Registered Office
Form 23AA
True/False
Question
Correct Answer
True
Your Answer
True
Question
Present limit for giving details of employees in Directors' Report is :-
Correct Answer
Rs. 2 lac p.m.
Your Answer
Rs. 5 lac p.m.
Question
Correct Answer
policies
Your Answer
policies
Question
What has the national labour omission described about passing of the act?
Correct Answer
Landmark in the history of labour legislation in the country
Your Answer
Select The Blank
Question
payment.
Correct Answer
4
Your Answer
2
True/False
Question
Financial year and calendar year are one and the same thing.
Correct Answer
False
Your Answer
False
Question
For public company, quorum for general meeting is :-
Correct Answer
5 members in person
Your Answer
5 members in person
True/False
Question
Correct Answer
True
Your Answer
True
Question
Correct Answer
Your Answer
Select The Blank
Question
Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer
Preferential right
Your Answer
Preferential right
True/False
Question
employment.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
Correct Answer
1000
Your Answer
1000
Question
As per section 3 who fixes the minimum rate of wages to be paid to the
employees ?
Correct Answer
Appropriate government
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Default in placing annual accounts before AGM may result in imprisonment.
Correct Answer
True
Your Answer
True
Question
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
Your Answer
Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for import of
goods.
Correct Answer
Letter of credit
Your Answer
Letter of credit
Question
Correct Answer
Managers
Your Answer
Managers
Question
As per the provisions of Companies Act 1956, company can issue shares with :-
Correct Answer
Differential voting rights
Your Answer
Question
Correct Answer
Your Answer
Question
What sums are deductible from gross profit under section 8?
Correct Answer
Amount by way of depreciation , Employment rebate or investment allowance ,
Direct tax
Your Answer
Direct tax
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
A piece rated worker is entitled to bonus.
Correct Answer
True
Your Answer
True
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Question
No preference shares can be redeemed unless they are :-
Correct Answer
Fully paid up
Your Answer
Fully paid up
Question
What do you mean by establishment on private sector?
Correct Answer
Any establishment other than public sector
Your Answer
Question
Person permanently resident in India can return foreign exchange by :-
Correct Answer
From AD , Travelling abroad , As a gift
Your Answer
True/False
Question
provided fund.
Correct Answer
False
Your Answer
False
Question
ECB stands for :-
Correct Answer
External Commercial Borrowings
Your Answer
Question
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Select The Blank
Question
Payment of ________ requires registration from RBI.
Correct Answer
Royalty
Your Answer
Royalty
Question
Correct Answer
Your Answer
Question
Correct Answer
Remuneration under any award , Settlement between the parties or order of court
, Overtime
Your Answer
Remuneration under any award , Overtime , Travelling allowance
Question
Correct Answer
Your Answer
True/False
Question
Every company has to appoint an auditor to audit the accounts of the company
and has to fix remuneration to be paid to the auditor.
Correct Answer
True
Your Answer
True
Question
FEMA Norms are compatible with :-
Correct Answer
FERA
Your Answer
FERA
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948
Select The Blank
Question
The definition of ECB in India is partly in alignment with ________ Act.
Correct Answer
FERA
Your Answer
FERA
Select The Blank
Question
Correct Answer
Internal management
Your Answer
Internal management
Question
Correct Answer
Your Answer
Question
Correct Answer
Less than Rs 1600
Your Answer
Less than Rs 1600
Select The Blank
Question
________ of the company has a right to take inspection of the books of account.
Correct Answer
Any Director
Your Answer
Any Director
True/False
Question
The minimum wages act came in force on 15 march 1968
Correct Answer
False
Your Answer
False
Select The Blank
Question
be ________.
Correct Answer
Binding
Your Answer
Binding
Question
Correct Answer
Your Answer
Employed persons , Salary less than 1600 per month , Salary less than 1200 per
month
Question
What do you mean by accounting year?
Correct Answer
Day on which books of accounts of the corporation are closed
Your Answer
Day on which books of accounts are open
True/False
Question
Directors' Report may contain details/ state of affairs of its subsidiaries.
Correct Answer
True
Your Answer
True
True/False
Question
A part time worker as sweeper engaged in regular business is entitled bonus.
Correct Answer
True
Your Answer
True
Question
In which case did the Bombay high court observe the general purpose of the act?
Correct Answer
Your Answer
Select The Blank
Question
First AGM should be held within ________ from closure of financial year.
Correct Answer
9 months
Your Answer
18 months
Question
Quorum required to hold a valid meeting can be prescribed in :-
Correct Answer
Your Answer
Select The Blank

Question
Private Company prohibits public to ________ for any shares.
Correct Answer
Subscribe
Your Answer
Subscribe
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Special Resolution
Special Resolution

Ordinary Resolution
ROC
Select The Blank
Question
Correct Answer
Power of Attorney
Your Answer
Resolution authorising alteration
Question
Correct Answer
Your Answer
True/False
Question
Company can not issue shares with differential voting/ dividend rights.
Correct Answer
False
Your Answer
False
True/False
Question
The Board has power to alter Articles of Association being internal document.
Correct Answer
False
Your Answer
True
Question
Correct Answer
Meeting to be held 4 times in a year , Should not be a gap of more than 4 months
between 2 meetings , Minimum information should be made available
Your Answer
Question
Correct Answer
In 1948
Your Answer
In 1948
True/False
Question
No additional fees is payable on increased authorised capital since already paid
on original authorised capital.
Correct Answer
False
Your Answer
False
Legal aspects of finance –saroj -1
Question When was the minimum wages act passed ?
Correct Answer 1948
Your Answer 1948
Select The Blank

Question For Special Resolution, votes cast in favour of the resolution should be
________ times more than votes cast against the resolution.
Correct Answer 3
Your Answer 3

Question For registering certain resolutions, following documents are submitted :-
Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory
statement
Your Answer Form 23 , Certified copy of resolution , Draft resolution

Question Who are governed by the payment of wages act?
Correct Answer Employed persons , Salary less than 1600 per month
Your Answer Employed persons , Salary less than 1600 per month , Salary less than
1200 per month

Question Under which circumstances will the worker not receive wages for full
normal working days ?
Correct Answer If failure to work is caused by unwillingness to work , Not by
omission of the employer to provide him with work
Your Answer If failure to work is caused by unwillingness to work , Not by omission
of the employer to provide him with work , He works for more than full working hours

Question What do you mean by wages?
Correct Answer Remuneration by way of salaries , Allowances , Expressed in terms
of money
Your Answer Remuneration by way of salaries , Allowances , Expressed in terms of
money

Question Who is an independent director?
Correct Answer Non executive director , Who receives director remuneration , Who
is not related to the promoters
Your Answer Non executive director , Who receives director remuneration , Who is
not related to the promoters
Select The Blank

Question Board has power to receive of notice of ________.
Correct Answer Disclosure of interest
Your Answer Disclosure of interest

Question Company has to make application to central government, in case of
appointment of managing director is not made accordance with part I & II of schedule
XIII, within :-
Your Answer 45 days
Select The Blank

Question The ________ issue shall be by way of public issue.
Correct Answer NCD
Your Answer RTO
Select The Blank

Question Under section ________ period in respect of which wages would be paid
would be determined.
Correct Answer 3
Your Answer 3
True/False
Question A piece rated worker is entitled to bonus.
Correct Answer True
Your Answer False

Question What is the minimum salary under which the persons are covered in this
act?
Correct Answer Less than Rs 1600
Your Answer Less than Rs 1600
Select The Blank

Question ________ includes legal representative of deceased employer.
Correct Answer Employer
Your Answer Doctor
Match The Following

dismissed employee for bonus Gannon India vs. niranjan das Gannon India vs. niranjan
das
part time employee entitled to bonus automobile karmachari sang vs. industrial tribunal
1970 automobile karmachari sang vs. industrial tribunal 1970
retrenched employee entitled for bonus' east Asiatic company vs. industrial tribunal
1961 east Asiatic company vs. industrial tribunal 1961
probationer for bonus' bank of madura vs. employees union 1970 bank of madura vs.
employees union 1970
True/False
Correct Answer True
Your Answer False

Question FEMA Norms are compatible with :-
Correct Answer FERA
Your Answer FERA

Question WOS are allowed to :-
Correct Answer Pay royalty , Offshore payment , By automatic route
Your Answer Pay royalty , Offshore payment , By automatic route

Question The register in respect of every investment or loan made, contains
Correct Answer The name of body corporate , The amount, terms & conditions &
purpose of investment or loan or security or guarantee , The date on which the
investment or loan has been made
Your Answer The name of body corporate , The amount, terms & conditions &
purpose of investment or loan or security or guarantee , The date on which the
investment or loan has been made
True/False
Question Deductions for income tax, payable by the employed person is permissible.
Correct Answer True
Your Answer True
True/False
Question Financial year and calendar year are one and the same thing.
Your Answer False

Question How would you define salary or wage?
Correct Answer All remuneration other than in respect of overtime work of the work
Your Answer All remuneration including overtime

Question In case of cost audit, the report of cost auditor has to be submitted to central
government, within :-
Your Answer 90 Days

Question Books of account with respect to following are required to be kept :-
Correct Answer Money received & expended , Sales & purchases of goods , Assets &
liabilities
Your Answer Shares of the company bought & sold by the members , Money received
& expended , Sales & purchases of goods

Question Appointment of receiver under sec.137 containt
Correct Answer Name , address and date of appointment of receiver , date on which
the receiver ceased to act
Your Answer Name , address and date of appointment of receiver , date on which the
receiver ceased to act , Receivers Professional qualification

Question In the case of prevention of operation and mismanagement application is to
be made to company law board by
Correct Answer Member
Your Answer Member

Question Retiring director shall be deemed to be reappointed unless :-
Correct Answer He has expressed his unwillingness to be re-appointed , He is
disqualified for appointment , Resolution for reappointment has been put to vote & lost
Your Answer He has expressed his unwillingness to be re-appointed , He is

disqualified for appointment , Resolution for reappointment has been put to vote & lost
Select The Blank

Question If an employer derives profit in any of the first ________ years he has to
pay bonus for that year.
Correct Answer 5
Your Answer 5
True/False
Question Every company has to appoint an auditor to audit the accounts of the
company and has to fix remuneration to be paid to the auditor.
Correct Answer True
Your Answer True
True/False
Question Senior managers are members of management, one level below the
executive director.
Correct Answer True
Your Answer True

Question The penalties are levied for which offences done?
Correct Answer Pay less than minimum wages , Pay less than fixed wages ,
Contravenes any rule or order
Your Answer Pay more than fixed wages , Pay less than minimum wages , Pay less
than fixed wages
True/False
Question Board may appoint additional directors.
Correct Answer True
Your Answer True

Question Which report is received by the shareholders annually ?
Correct Answer Directors report
Your Answer Directors report
Select The Blank

Question The recommendations of audit committee relating to financial management
shall be ________.
Correct Answer Binding
Your Answer Recommendary
Select The Blank

Question Purchase of foreign securities by resident employee of Indian Software
Company, should not exceed ________.
Correct Answer US $ 50000
Your Answer US $ 50000
True/False
Question Former director can take inspection of books of account for the years when
he was director.
Your Answer False

Your Answer Special resolution

Question Compliance Report is signed by :-
Correct Answer Company Secretary in practice
Your Answer Board of Directors
Select The Blank

Question Director has to vacate his office, if he has been ________ by a court of any
offence involving moral turpitude.
Correct Answer Convicted
Your Answer Convicted
True/False
Question Any gratuity payable on termination of employment is included in wages.
Your Answer True

Your Answer Solvent
Match The Following

Notice Circulation for day, time of meeting Circulation for day, time of meeting
Sole selling agent Have exclusive right to sale for company in specified area Have
exclusive right to sale for company in specified area
Audit committee Appointed for specific purpose related to audit Appointed for
assistance to board of directors
Quorum Minimum required persons for meeting Minimum required persons for
meeting
True/False
Question Employee includes an out worker to whom any article or material are given
out by another person for repair or cleaning.
Correct Answer True
Your Answer False
Select The Blank

Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Your Answer 15 days

Your Answer Redeemable , Convertible , Party convertible and redeemable

Question Single director can sign the annual accounts if :-
Correct Answer Only one director in India for the time being
Your Answer He is authorised by the Board in this regard
Select The Blank

Question Copies of annual accounts are to be filed within ________ days from AGM
with ROC.
Your Answer 21 days
*************
Legal Aspects of Finance
Question
Correct Answer
Your Answer
Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for
import of goods.
Correct Answer
Letter of credit
Your Answer
Letter of credit
Question
Correct Answer
Managers
Your Answer
Managers
Question
As per the provisions of Companies Act 1956, company can issue shares
with :-
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
Question
Correct Answer
Amount by way of depreciation , Employment rebate or investment
allowance , Direct tax
Your Answer

Question
Correct Answer
Remuneration by way of salaries , Allowances , Expressed in terms of
money
Your Answer
money
Question
What does an industrial or other establishment means as per section
2II?
Correct Answer
Tramway service or motor transport service engaged carrying
passengers of hire or reward , Dock wharf jetty , Plantation
Your Answer
True/False
Question
Correct Answer
True
Your Answer
True
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Question
Correct Answer
Fully paid up
Your Answer
Fully paid up
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Wages include any contribution paid by the employer to any pension
fund or provided fund.
Correct Answer
False
Your Answer
False
Question
ECB stands for :-
Correct Answer
Your Answer
Question
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Select The Blank
Question
Correct Answer
Royalty
Your Answer
Royalty
Question
Correct Answer
Your Answer
Question
Correct Answer
Remuneration under any award , Settlement between the parties or
order of court , Overtime
Your Answer
Question
Correct Answer
Gross profit less deductions , Direct tax calculated in accordance to
provisions of section 7 in respect to amount equal to gross profits
of the employer for immediately preceding accounting year
Your Answer
True/False
Question
Every company has to appoint an auditor to audit the accounts of the
Correct Answer
True
Your Answer
True
Question
Correct Answer
FERA
Your Answer
FERA
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948

Select The Blank
Question
The definition of ECB in India is partly in alignment with ________
Act.
Correct Answer
FERA
Your Answer
FERA
Select The Blank
Question
Correct Answer
Internal management
Your Answer
Internal management
Question
Section 24 provides bar to entertain suits by the court for recovery
of wages in so far as the sum claimed falls within which of the
following categories :-
Correct Answer
For which any application claim has already been presented ,
Direction of claim already given' , Amount adjudged is not due to
penalty
Your Answer
penalty
Question
What is the minimum salary under which the persons are covered in
this act?
Correct Answer
Less than Rs 1600
Your Answer
Less than Rs 1600
Select The Blank
Question
of account.
Correct Answer
Any Director
Your Answer
Any Director
True/False
Question
Correct Answer
False
Your Answer
False
Select The Blank
Question
The recommendations of audit committee relating to financial
management shall be ________.
Correct Answer
Binding
Your Answer
Binding
Question
Correct Answer
Your Answer
Employed persons , Salary less than 1600 per month , Salary less than
1200 per month
Question
Correct Answer
Your Answer
True/False
Question
Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer
True
Your Answer
True
True/False
Question
A part time worker as sweeper engaged in regular business is entitled
bonus.
Correct Answer
True
Your Answer
True
Question
In which case did the Bombay high court observe the general purpose
of the act?
Correct Answer
Your Answer
Select The Blank
Question
First AGM should be held within ________ from closure of financial
year.
Correct Answer
9 months
Your Answer
18 months
Question
Correct Answer
Your Answer
Select The Blank
Question
Correct Answer
Subscribe
Your Answer
Subscribe
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Special Resolution
Special Resolution

Ordinary Resolution
ROC
Select The Blank
Question
Correct Answer
Power of Attorney
Your Answer
Question
Correct Answer
Ensure payment of wages to the employed , Prevent unauthorised
Your Answer
True/False
Question
rights.
Correct Answer
False
Your Answer
False
True/False
Question
The Board has power to alter Articles of Association being internal
document.
Correct Answer
False
Your Answer
True
Question
Correct Answer
Meeting to be held 4 times in a year , Should not be a gap of more
than 4 months between 2 meetings , Minimum information should be made
available
Your Answer
available
Question
Correct Answer
In 1948
Your Answer
In 1948
True/False
Question
No additional fees is payable on increased authorised capital since
already paid on original authorised capital.
Correct Answer
False
Your Answer
False
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
Correct Answer
Central govt.
Your Answer
Central govt.
Question
Correct Answer
Your Answer
Question
FEMA?
Correct Answer
Your Answer
Select The Blank
Question
Correct Answer
1948
Your Answer
1948
Select The Blank
Question
be determined.
Correct Answer
3
Your Answer
5
Select The Blank
Question
Correct Answer
Employer
Your Answer
Employer
Question
Correct Answer
Insurance
Your Answer
Insurance
Question
Correct Answer
to class of shares
Your Answer
Select The Blank
Question
charge.
Correct Answer
Responsibility
Your Answer
Responsibility
Select The Blank

Question
Correct Answer
31st March
Your Answer
31st March
Question
Correct Answer
Vacated
Your Answer
Vacated
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Internal auditor
Doing legal things
Insolvent
Moral turpitude
Call on share
Select The Blank
Question
Correct Answer
3
Your Answer
3
True/False
Question
Correct Answer
True
Your Answer
True

Question
Correct Answer
Your Answer
True/False
Question
water.
Correct Answer
False
Your Answer
False
True/False
Question
the organisation.
Correct Answer
False
Your Answer
True
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
Your Answer
Question
Correct Answer
30.6.2006
Your Answer
30.6.2006
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors

ROC
Books of Account
Form 23AA
Registered Office
Form 23AA
True/False
Question
Correct Answer
True
Your Answer
True
Question
Correct Answer
Rs. 2 lac p.m.
Your Answer
Rs. 5 lac p.m.
Question
Correct Answer
policies
Your Answer
policies
Question
Correct Answer
Your Answer
Select The Blank
Question
payment.
Correct Answer
4
Your Answer
2
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
5 members in person
Your Answer
5 members in person
True/False
Question
Correct Answer
True
Your Answer
True
Question
Correct Answer
Your Answer
Select The Blank
Question
Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer
Preferential right
Your Answer
Preferential right
True/False
Question
employment.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
Correct Answer
1000
Your Answer
1000
Question
employees ?
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
True
Your Answer
True
Question
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False

Question Section 24 provides bar to entertain suits by the court for recovery of wages in so far as the sum claimed
falls within which of the following categories :-
Correct Answer Amount adjudged is not due to penalty , For which any application claim has already been
presented , Direction of claim already given'
Your Answer For which any application claim has already been presented , Direction of claim already given' ,
Amount adjudged is not due to penalty
True/False
Question A temporary workman is not entitled to bonus though he works for a few days in the organisation.
Your Answer False
Select The Blank

Question A person who stands for directorship other than retiring director has to give notice to the company at
least ________ before the date of general meeting.
Your Answer 15 days

Question In case of cost audit, the report of cost auditor has to be submitted to central government, within :-
Your Answer 45 Days

Correct Answer Transaction Vouchers , Cash and Bank balances , Fixed assets register
Your Answer Transaction Vouchers , Fixed assets register , Register of creditors
True/False
Question The national labour commission on labour has described the assessing of the act as landmark in the
history of labour legislation in the country.
Correct Answer True
Your Answer True

Select The Blank

Question Every ________ Company has to hold Statutory Meeting of the members.
Correct Answer Public
Your Answer Limited
True/False
Question The independent director is a supplier of a service provider of the company.
Your Answer False

Correct Answer 13 specified activities , Sector limits sought exceeded , Small scale sector items
Your Answer 13 specified activities , Sector limits sought exceeded , Small scale sector items
True/False
Correct Answer True
Your Answer True
True/False
Question In case of Postal Ballot, result is announced through post.
Your Answer True

Question Briefly describe the scheme of the bonus act :-
Correct Answer To impose statutory liability upon every employer to pay bonus to employees , To define
principle of payment of bonus as per the prescribed formula , To provide payment for minimum and maximum
bonus and link the scheme for set off and set on
Your Answer To impose statutory liability upon every employer to pay bonus to employees , To define principle
of payment of bonus as per the prescribed formula , To provide payment for minimum and maximum bonus and link
the scheme for set off and set on
Select The Blank


Select The Blank

Question ________ of the company has absolute discretion in regard to inclusion or non inclusion of any matter
in the minutes.
Correct Answer Chairman
Your Answer Share-holders who attended the meeting

Your Answer Party convertible and redeemable , Redeemable , Convertible
Select The Blank

Question Subject to other provisions of this act every employer shall be bound to pay every employee in respect
of the accounting year commencing on any day in the year ________.
Correct Answer 1979
Your Answer 1979
Match The Following

Indian company borrowings Redemption more than 3 years Redemption more than 3 years
Borrowing by NRE Loan less than 3 years Regulated ROI
Borrowings in Rupees Regulated ROI Loan less than 3 years

NCD issue Public issue Public issue

Correct Answer Main Object , Object incidental or ancillary to Main , Other Objects
Your Answer Main Object , Object incidental or ancillary to Main , Other Objects

Your Answer Usual postal address
Select The Blank

Question A statement of all transactions with the related parties including the basis shall be placed before the
________.
Select The Blank

Question First AGM should be held within ________ from closure of financial year.
Correct Answer 9 months
Your Answer 6 months
True/False
Question An apprentice is not entitled to bonus.
Correct Answer True
Your Answer True

Question Company has to make application to central government, in case of appointment of managing director is
not made accordance with part I & II of schedule XIII, within :-
Your Answer 30 days

Correct Answer Cumulative redeemable , Non- cumulative redeemable , Participatory
Your Answer Cumulative redeemable , Non- cumulative redeemable , Participatory

Correct Answer Ensure payment of wages to the employed , Prevent unauthorised deductions , Prevent arbitrary
fines
Your Answer Ensure payment of wages to the employed , Prevent unauthorised deductions , Prevent arbitrary
fines

Question Following Resolutions must be passed by Postal Ballot :-
Correct Answer Alteration in Object Clause , Buy-back of own shares , Variation in rights attached to class of
shares
Your Answer Alteration in Object Clause , Buy-back of own shares , Variation in rights attached to class of shares

Question In calculating the limit of all the companies which companies are excluded?
Correct Answer Foreign companies , Private Companies , Non Profit making companies
Your Answer Foreign companies , Non Profit making companies , Public limited companies

True/False
Correct Answer True
Your Answer True
True/False
Question Meeting of the board of Directors shall be held at least 4 times in a year.
Correct Answer True
Your Answer True
Select The Blank

Question Payment of ________ requires registration from RBI.
Correct Answer Royalty
Your Answer Royalty


Question The representations received for revision or fixation or reverse the rate of minimum wages by
notification in the official gazette are considered by :-
Correct Answer Advisory board
Your Answer Advisory board

Question Number of shareholders entitled to requisition a meeting shall be carrying

Question After incorporation of the company, the first auditor is generally appointed within :-
Correct Answer One Month
Your Answer One Month
True/False
Your Answer True
True/False
Correct Answer True
Your Answer False

Question The minimum wages act falls under which scope ?
Correct Answer Scope of entry 27 I list III of schedule IV of constitution of India
Your Answer Schedule 9 of section 23

Question Declaration of Compliance with requirements of the Companies Act
Correct Answer Form 1
Your Answer Form 32

Question Company can increase its maximum number of directors, for which application is required to be made in
:-
Correct Answer Form no 24
Your Answer Form no 24

Question Board may by resolution passed at the meeting delegate the powers to :-
Select The Blank

Question The uses and applications of the funds raised shall be disclosed to the audit committee on a
________basis.
Select The Blank

Question Authorized dealer may freely open ________ and allow remittance for import of goods.
Correct Answer Letter of credit
Your Answer Letter of credit
Select The Blank

Question To avoid conflicts of interest, ________ committee would determine the remuneration packages of the
executive directors.

Question For which activity FDI is not prohibited?
Correct Answer Insurance
Your Answer Insurance

Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Quarterly , Annually , Monthly

Question Payment of wages act came into existence :-
Correct Answer To ensure regular and timely payment of wages to employed per
Your Answer To ensure regular and timely payment of wages to employed per

Question To safeguard the interest of the company or its shareholders or th
public interest, the central government, may appoint such numbe
person as directors to hold office for a period not exceeding :-
Correct Answer 3 years
Your Answer 3 years

Question Sole selling agent may be :-
Correct Answer An Individual , A firm , A Body corporate
Your Answer An Individual , A firm , A Body corporate

Question When was the factories act passed?
Correct Answer In 1948
Your Answer In 1948

carrying

Bottom of Form
Select The Blank

Question Copies of annual accounts are to be filed within ________ days f
AGM with ROC.
Your Answer 90 days
True/False
Question Sectoral cap on investment by person resident outside India on M
rapid Transport is 50%.
Your Answer True
Select The Blank

Question If an employer derives profit in any of the first ________ years he
Correct Answer 5
Your Answer 5


Question Define an employee under section 2 (13) :-
Correct Answer Person employed with salary exceeding Rs 3500
Your Answer Person employed with salary exceeding Rs 2500
True/False
Question Authorized dealer is required to avail license under the exim polic
force.
Correct Answer True
Your Answer True
Question The earlier "Fast Track" investments route has been replaced by
Correct Answer Automatic
Your Answer Automatic

Question The quorum for the board meeting is one third of the total strengt
the board or two whichever is :-
Correct Answer More
Your Answer More

Your Answer To pay wages after a years time
Select The Blank

Question The recommendations of audit committee relating to financial
Your Answer Binding
Select The Blank

Question The minimum wages to the obligations created by the convention
of ________.
Correct Answer International labour organisation
Your Answer International labour organisation

Correct Answer On repatriation , Non-repatriation , In Rupees
Your Answer In Rupees , On repatriation , On Payments made

Correct Answer Remuneration by way of salaries , Allowances , Expressed in term
money
Your Answer Remuneration by way of salaries , Allowances , Expressed in term
money
Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your Answer Persons employed in any factory

Question What is the minimum salary under which the persons are covere
this act?

Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased employed person
Your Answer Includes legal representative of a deceased employed person

Question Following are the points related to Qualification share that every
director has to take :-
Correct Answer Minimum Share value Rs.5000/- , Within two months of date of
appointment , If fails to obtain then he has to resign from the pos
Your Answer Minimum Share value Rs.5000/- , Within two months of date of
appointment , If fails to obtain then he has to resign from the pos
Match The Following

Question Correct Answer
Interim Dividend Board of Directors
Reduction of capital Special Resolution
Appointment of Managing Ordinary Resolution

Director
Accounting Standards National Advisory Committee

True/False
Question A General Meeting may also be called by giving shorter notice th
days.
Correct Answer True
Your Answer True

Question Board's Report shall include :-
Correct Answer Dividend recommended , Financial position of the company , Am
Your Answer Dividend recommended , Taxes paid , Financial position of the
company
Select The Blank

Question As per section 5 in case of railways if the persons employed is le
Correct Answer 1000
Your Answer 1000

True/False
Question Wages includes any remuneration payable under any award or
settlement between the parties or order of court.
Correct Answer True
Your Answer True

Correct Answer 1948
Your Answer 1948
True/False
Your Answer True
True/False
Question Wages includes any travelling allowance for travel concession.
Your Answer False

Question Companies Act presently implemented and adhered by companie
Correct Answer Companies Act, 1956
Your Answer Companies Act, 1956

Select The Blank

Question To avoid conflicts of interest, ________ committee would determ
Your Answer Board members

True/False
Question The loan to any body corporate shall be made at the rate of inter
less than that prevailing bank rate as may be prescribed by Rese
Bank of India.
Correct Answer True
Your Answer True

Question A director can hold place of profit by :-
Correct Answer Special resolution
Select The Blank

Question The board of directors shall exercise these powers only at board
meetings :-
Correct Answer Power to make calls on shares , Power to issue debentures , Pow
borrow money
Your Answer Power to make calls on shares , Power to issue debentures , Pow
borrow money

Question The period for realization for export of goods from the date of shi
is at :-
Correct Answer Six month
Your Answer Six month

Question Accounting Standards are issued by :-
Correct Answer Institute of Chartered Accountants
Your Answer Institute of Chartered Accountants

Question Describe in brief what does the term wages include?
Correct Answer Remuneration under any award , Settlement between the parties
Your Answer Remuneration under any award , Settlement between the parties

Correct Answer Ensure payment of wages to the employed , Prevent unauthorise
Your Answer Ensure payment of wages to the employed , Prevent unauthorise
Select The Blank
Question ________means all remuneration expressed in terms of money.
Correct Answer Wages
Your Answer Wages

Question The Indian company may issue bonus shares to its non resident
shareholders subject to :-
Correct Answer Held by non resident shareholder , As per acquisition , In the For
FC-GPR
Your Answer Held by non resident shareholder , As per acquisition , In the For
FC-GPR , Willingness of company
Match The Following

Section 2(vi) Wages
Wages act 1936
Factories act 1948
Section 3 of wages act Every employer responsible

for payment to employed
persons

Question Board may by resolution passed at the meeting delegate the pow
to :-
True/False
Question Meeting of the board of Directors shall be held at least 4 times in
Correct Answer True
Your Answer True
Question Who has not prescribed particular set of documentation for curre
account remittances?
Correct Answer RBI , Central Govt.
Your Answer RBI , Central Govt.
True/False
Question A temporary workman is not entitled to bonus though he works fo
days in the organisation.
Your Answer False

Question Which person is responsible for he payment of wages act ?
Correct Answer Managers
Your Answer Managers
Select The Blank

Question Multimodal ________ making remittance to their agents abroad.
Correct Answer Transport operators
Your Answer Transport operators
Bottom of Form
Score Card
Registration
200404214
Number:
Name: Manpreet Malhotra
Subject: Legal Aspect Of Finance
Assignment Status
18/03/2006
As On:
Result for this Assignment

Assignment Date 17/03/2006
Number of Correct Questions 37
Number of Skipped Questions 10
Number of Wrong Questions 10
Total Questions attempted 57

Total Marks obtained 78 Out of 100.
Result Pass
Click here to view the list of attempted question and answers.
Top of Form 1
True/False
Question A probationer is an employee and as such is not entitled to business.
Your Answer True
True/False
Question Charge includes Mortgage.
Correct Answer True
Your Answer False

Question Which committees are considered for calculating the limit of the companies
Correct Answer Audit committees , Remuneration Committee , Shareholders Grievance
Committee
Your Answer Audit committees , Remuneration Committee , Shareholders Grievance
Committee

Question FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate
Your Answer Retail trading , Gambling & betting , Housing & real estate

Question What is computed by the competent authority at concessional rates?
Correct Answer Cost of living allowance and cash value
Your Answer Cost of living allowance and cash value
True/False
Question Articles of Association is not required to be stamped if Memorandum is
adequately stamped.
Your Answer False

Question The auditor shall inquire :-
Correct Answer Whether transactions of the company which are represented merely by book
entries are not prejudicial to the interest of the company or members , Whether
loans & advances made by the company have been shown as deposits , Whether
personal expenses have been charged to revenue account
Your Answer Whether loans & advances made by the company have been shown as deposits ,
Whether personal expenses have been charged to revenue account

Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually
Your Answer Annually

Question If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer 30.6.2006
Your Answer 30.6.2006

True/False
Question Wages does not include any gratuity payable on discharge.
Correct Answer True
Your Answer True

Question Remittance completely prohibited on :-
Correct Answer Dividend balancing , Telephone expanses , Interest on funds
Your Answer Dividend balancing , Telephone expanses , Interest on funds
Match The Following

Audit Report Opinion on the examination of Opinion on the examination of
books of accounts books of accounts
Auditor A person who conducts the audits A person who conducts the audits
Qualified for audit Eligible to conduct the audit Eligible to conduct the audit
Cost auditor A cost accountant, who is suppose A cost accountant, who is suppose
to conduct cost audit of the to conduct cost audit of the
company. company.
Select The Blank

Question Copies of annual accounts are to be filed within ________ days from AGM with
ROC.
Your Answer 30 days
Select The Blank

Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Authority route

Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis
Your Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis

Question How much percentage of block of voting shares does the independent director
not own ?
Correct Answer 0.02
Your Answer 0.02
True/False
Question An employee employed through contractors on building operations is entitled to
bonus.
Your Answer True
True/False
Question A non executive director is not a substantial shareholder of the company.
Correct Answer True
Your Answer True

Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies , Accounting standards
Your Answer Going concern , Accounting policies , Accounting standards

Question Following are the Forms to be submitted to ROC for incorporation of
company :-
Correct Answer Form 32 , Form 29 , Form 1
Your Answer Form 32 , Form 1 , Form 5
True/False
Question The act is undoubtedly a welfare legislation in favour of workers and more than
an essential measure for economic upliftment of the workers in the sweated
industries.
Correct Answer True
Your Answer True

Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts
Your Answer Presentation as per Act

Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory statement
Your Answer Form 23 , Certified copy of resolution , Copy of explanatory statement
Question If an auditor after his appointment becomes subject to any of the
Correct Answer Vacated
Your Answer Vacant
Select The Blank

Question ________ shall lay before the AGM, the statement of Income & Expenditure in
place of Profit & Loss a/c.
Correct Answer Charitable Trust
Your Answer Government company
True/False
Question An independent Director is not an executive director of a Company.
Your Answer False
Select The Blank

Correct Answer NCD
Your Answer NCD

Question Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable association
Your Answer Private limited company , Unlimited company , Charitable association

Question It should be noted that the company has to pay on loan document the :-
Correct Answer Stamp duty
Your Answer Bank charges

Question Which period results for the company are required to be made available to the
board in the meeting of board of directors?
Correct Answer Quarterly results
Your Answer Quarterly results

Question Venture capital Funds are regulated as per the Norms of :-
Correct Answer SEBI
Your Answer SEBI
True/False
Question FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer True
Your Answer False
True/False
Question Wages include any contribution paid by the employer to any pension fund or
provided fund.
Your Answer False
Select The Blank

Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Your Answer 30 days
Select The Blank

Question The recommendations of audit committee relating to financial management
shall be ________.
Your Answer Binding

Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders
Your Answer Banks , Financial Institutions , Debenture Holders
Select The Blank

Question The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities
Your Answer Current liabilities
Match The Following

Capital Account Guarantee by a person resident Capital Account
Living Expenses Current Account Personal Account
Deposits Capital Account Current Account
The Adjudicating Authority Power of Classification Accounting Authority
Select The Blank
Question Sweeping powers such as search and arrest contained in Foreign Exchange
________ Act.
Correct Answer Control
Your Answer Control
Select The Blank

Question For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney
Your Answer Power of Attorney
Select The Blank

Question Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer Preferential right
Your Answer Preferential right
Select The Blank

Question For private company, number of members do not include ________.
Correct Answer Employees of company
Your Answer Directors of company

Question Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer Reserve Bank of India
Your Answer Reserve Bank of India

Question Long - term borrowings schemes have which maturity period?
Correct Answer Eight years
Your Answer Five years

Question What are the powers of the audit committee?
Correct Answer To investigate any activity within its terms of reference , To seek information
from any employee , To obtain outside legal or professional advice
Your Answer To investigate any activity within its terms of reference , To seek information
from any employee , To obtain outside legal or professional advice
Bottom of Form 1
Top of Form
True/False
Question Company can not issue shares with differential votin
dividend rights.
Your Answer False
Select The Blank

Question ________ of the company has a right to take inspec
of the books of account.
Correct Answer Any Director
Your Answer Any Director
Select The Blank

Question ________ is one of the critical matter which should
decided by the postal ballot.
Correct Answer Corporate restructuring
Your Answer Appointment of directors
True/False
Question There should be a gap of more than 4 months to ha
the meeting of the board of directors.
Your Answer True
True/False
Question Every company shall have a qualified and independ
audit committee.
Correct Answer True
Your Answer True
Question Every member of a company limited by shares and
holding any equity share capital therein shall have :
Correct Answer Right to vote
Your Answer Right to vote

Question What does salary or wage include?
Correct Answer Dearness allowance
Your Answer Overtime

Question Retiring director shall be deemed to be reappointed
unless :-
Correct Answer He has expressed his unwillingness to be re-appoin
He is disqualified for appointment , Resolution for
reappointment has been put to vote & lost
Your Answer He has expressed his unwillingness to be re-appoin
He is disqualified for appointment , Resolution for
reappointment has been put to vote & lost
True/False
Question Every company has to inform ROC about the place
where it keeps books of account.
Your Answer False
True/False
Correct Answer True
Your Answer True
Select The Blank

Question To avoid conflicts of interest, ________ committee w
determine the remuneration packages of the execut
directors.

Question Define an employee under section 2 (13) :-
Correct Answer Person employed with salary exceeding Rs 3500
Your Answer Person employed with salary exceeding Rs 3500

Question Current Account transactions are permitted if payme
made out of :-
Correct Answer EEFC Account , RFC Account
Your Answer Current Account , EEFC Account , Cash Credit Acco

Correct Answer All remuneration other than in respect of overtime w
the work done in such employment
Your Answer All remuneration other than in respect of overtime w
the work done in such employment
True/False
Question A director is not required to take qualification share.
Your Answer False

Question If an auditor after his appointment becomes subject
any of the disqualifications, it is treated that the offic
Correct Answer Vacated
Your Answer Vacated
Select The Blank
Question The form should be filled within ________ days from
date of execution of document.
Your Answer 30 days
Select The Blank

Question Sweeping powers such as search and arrest contai
Foreign Exchange ________ Act.
Correct Answer Control
Your Answer Control

Question The Name availability issued by ROC is valid for :-
Correct Answer Six months
Your Answer No limit
Match The Following

Cost auditor A cost accountant, who

is suppose to conduct
cost audit of the
company.
Audit Report Opinion on the

examination of books of
accounts
Auditor A person who conducts

the audits
Qualified for audit Eligible to conduct the

audit
Match The Following
Dividend balancing Over 7 years from

production
Investment cap 26% Insurance
Investment cap 100% Housing & real estate
Foreign companies Project office

Question The register in respect of every investment or loan m
contains
Correct Answer The name of body corporate , The amount, terms &
conditions & purpose of investment or loan or secur
guarantee , The date on which the investment or loa
has been made
Your Answer The name of body corporate , The amount, terms &
conditions & purpose of investment or loan or secur
guarantee , The date on which the investment or loa
has been made

Question The Board is required to give explanation for the ad
remark given by :-
Correct Answer Auditor
Your Answer Auditor
Select The Blank

Question For private company, number of members do not in
________.
Correct Answer Employees of company
Your Answer Employees of company

Question Accounting Standards are issued by :-
Correct Answer Institute of Chartered Accountants
Your Answer Institute of Chartered Accountants



Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies , Accounting
standards
Your Answer Going concern , Accounting policies , Accounting
standards
Select The Blank

Question The management should clearly disclose ________
auditors report
Correct Answer Contingent liabilities
Your Answer Contingent liabilities

Question Explanatory Statement should be annexed to Notice
Correct Answer Special business
Your Answer Special business

Question Audit committee shall consist of not less than :-
Correct Answer Three directors
Your Answer One director
True/False
Question The loan to any body corporate shall be made at the
of interest not less than that prevailing bank rate as
be prescribed by Reserve Bank of India.
Correct Answer True
Your Answer True


Question The responsibility of placing the annual accounts be
the AGM is on
Correct Answer Board of Directors

Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts
Your Answer Correctness of the accounts

Question Conditions on borrowings by PIO are :-
Correct Answer Non-repatriation basis , Loan by inward remittance
Account by lender in India
Your Answer Non-repatriation basis , Loan by inward remittance
Account by lender in India

Question The Balance Sheet should be in the form set out in
of :-

Question Which committees are considered for calculating th
of the companies
Correct Answer Audit committees , Remuneration Committee ,
Shareholders Grievance Committee
Your Answer Audit committees , Remuneration Committee ,
Shareholders Grievance Committee

Your Answer Only one director in India for the time being

Correct Answer Main Object , Object incidental or ancillary to Main ,
Other Objects
Your Answer Main Object , Object incidental or ancillary to Main ,
Other Objects

Question Board of directors have to take consent of general
meeting for :-
Correct Answer Sale, lease or dispose of company's property , Give
to repayment of debt due by director , Contribute to
charitable funds exceeding Rs 50000/- or 5% of ave
net profits
Your Answer Sale, lease or dispose of company's property , Give
to repayment of debt due by director , Filling of vaca
True/False
Question The independent director is a supplier of a service
provider of the company.
Your Answer False
Select The Blank

Question Liability clause can be found in ________.
Correct Answer Memorandum of Association
Your Answer Articles of Association

Question In each board meeting director is paid by remunera
which is known as :-
Correct Answer Sitting fees
Your Answer Meeting fees

Question Maximum fine which can be levied for default in pla
accounts before AGM is :-
Correct Answer Rs. 50,000
Your Answer Rs. One lac

Question The auditor shall inquire :-
Correct Answer Whether transactions of the company which are
represented merely by book entries are not prejudic
the interest of the company or members , Whether l
& advances made by the company have been show
deposits , Whether personal expenses have been
Your Answer Whether transactions of the company which are
represented merely by book entries are not prejudic
the interest of the company or members , Whether l
& advances made by the company have been show
deposits , Whether personal expenses have been

Your Answer Company Secretary in practice
Bottom of Form
True/False
Question Meeting of the board of Directors shall be held at least 4 times in
Correct Answer True
Your Answer True

Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders
Your Answer Financial Institutions , Debenture Holders , Banks

Select The Blank

Question It is advisable to close the financial year on ________.
Correct Answer 31st March
Your Answer 31st March

Question Deductions are authorized under which section?
Correct Answer Section 7(2)
Your Answer Section 7(2)

Question When was the factories act passed?
Your Answer In 1948
Select The Blank

Question The minimum wages act came in force in the year________.
Correct Answer 1948
Your Answer 1948

Question Describe in brief what does the term wages include?
Correct Answer Remuneration under any award , Settlement between the parties
Your Answer Remuneration under any award , Settlement between the parties
True/False
Question Articles of Association is not required to be stamped if Memorand
adequately stamped.
Your Answer False

True/False
Correct Answer True
Your Answer True

Question The earlier "Fast Track" investments route has been replaced by
Correct Answer Automatic
Your Answer Automatic
Your Answer Usual residential address


Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your Answer Persons employed in any factory

Question What does an industrial or other establishment means as per sec
2II?
Correct Answer Tramway service or motor transport service engaged carrying
Your Answer Tramway service or motor transport service engaged carrying
True/False
Question A non executive director is not a substantial shareholder of the
company.
Correct Answer True
Your Answer False

Question What is the role of the audit committee?
Correct Answer Reviewing the company's financial and risk management policies
Review the annual financial statements , Recommending and
appointment of external auditors
Your Answer Review the annual financial statements , Recommending and
appointment of external auditors , Reviewing the company's finan
and risk management policies

Correct Answer 13 specified activities , Sector limits sought exceeded , Small sca
sector items
Your Answer 13 specified activities , Sector limits sought exceeded , Small sca
sector items

Question What is the minimum salary under which the persons are covere
this act?

Question Following are the Forms to be submitted to ROC for incorporation
company :-
Correct Answer Form 32 , Form 29 , Form 1
Your Answer Form 32 , Form 29 , Form 1
True/False
Question Wages include any contribution paid by the employer to any pens
Your Answer False

Question s
Your Answer In 1936
Match The Following

Section 2(vi) Wages
Wages act 1936
Factories act 1948
Section 3 of wages act Every employer responsible

for payment to employed
persons
Question To safeguard the interest of the company or its shareholders or th
public interest, the central government, may appoint such numbe
person as directors to hold office for a period not exceeding :-
Correct Answer 3 years
Your Answer 3 years


Correct Answer Ensure payment of wages to the employed , Prevent unauthorise
Your Answer Ensure payment of wages to the employed , Prevent unauthorise

Question In which case did the Bombay high court observe the general pu
of the act?
Correct Answer Arvind mills ltd case
Your Answer Arvind mills ltd case
True/False
Question Government can authorise for supply of essential commodities a
concessional rates and pay wages in kind.
Correct Answer True
Your Answer False
Match The Following

Qualification share Minimum number of shares

that every director has to
take
Director Employee of the company

Vacancy Created due to resignation of
director
Rotation Specific time interval

Question What is computed by the competent authority at concessional rat
Correct Answer Cost of living allowance and cash value
Your Answer Cost of living allowance and cash value
True/False
Question Retiring director may be eligible for reappointment.
Correct Answer True
Your Answer True

Question Board may by resolution passed at the meeting delegate the pow
to :-
Select The Blank

Question Under section ________ period in respect of which wages would
paid would be determined.
Correct Answer 3
Your Answer 3

Correct Answer Cumulative redeemable , Non- cumulative redeemable , Participa
Your Answer Cumulative redeemable , Non- cumulative redeemable , Participa

Question Who is entitled to bonus?
Correct Answer Temporary workmen , Part time employee , Retrenched employe
Your Answer Temporary workmen , Part time employee , Retrenched employe
Question Books of account with respect to following are required to be kep
Correct Answer Money received & expended , Sales & purchases of goods , Asse
liabilities
Your Answer Money received & expended , Sales & purchases of goods , Asse
liabilities
True/False
Question Wages include any house accommodation, supply of light medica
attendance etc.
Your Answer False

Question A person can not be appointed as director of the company if :-
Correct Answer He is found to be of unsound mind , He is declared as an insolve
has not taken qualification shares
Your Answer He is found to be of unsound mind , He is declared as an insolve
has not taken qualification shares
Select The Blank

Correct Answer NCD
Your Answer NCD

Your Answer To ensure regular and timely payment of wages to employed per

Correct Answer Transaction Vouchers , Cash and Bank balances , Fixed assets r
Your Answer Transaction Vouchers , Cash and Bank balances , Fixed assets r

Question In which of the companies the bonus act is applicable?
Correct Answer More than 20 persons employed
Your Answer More than 20 persons employed
Select The Blank

Question For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney
Your Answer Power of Attorney
Select The Blank

Question ________means all remuneration expressed in terms of money.
Correct Answer Wages
Your Answer Wages
True/False
Question No person can be appointed as an auditor of the company who is
time employment.
Correct Answer True
Your Answer True

carrying
Bottom of Form
Match The Following

Reduction of capital Special Resolution

Appointment of Managing Ordinary Resolution
Director
True/False
Question Payment to a scheme of insurance of a post office is not a deduc
Your Answer False
Select The Blank

Question The uses and applications of the funds raised shall be disclosed
audit committee on a ________basis.
Match The Following

Shorter notice for AGM Private Limited Company
Books of Account Form 23AA

Question Where does the company publish the compensation philosophy a
statement entitled compensation in respect of the non executive
directors?
Correct Answer Annual report
Your Answer Audit report
Question Which companies have to comply with the provisions of Clause 4
listing agreement ?
Correct Answer Listed Companies
Your Answer Listed Companies
True/False
Question Former director can take inspection of books of account for the y
when he was director.
Your Answer False
Select The Blank

Question As per section 5 in case of railways if the persons employed is le
Correct Answer 1000
Your Answer 1000
True/False
Question Statutory Meeting must be held on a working day.
Your Answer True
Select The Blank

Question The recommendations of audit committee relating to financial
Your Answer Binding

Correct Answer Remuneration by way of salaries , Allowances , Expressed in term
money
Your Answer Remuneration by way of salaries , Allowances , Expressed in term
money

Question Current Account transactions include :-
Correct Answer Payments for foreign Trade , Payments for Interest , Foreign Trav
Expenses
Your Answer Payments for foreign Trade , Payments for Interest , Payments a
Loans
Select The Blank

Your Answer Employer

Question Statutory Report pertains to :-
Correct Answer Funds raised by the company , Utilisation of funds , Investments
by the company
Your Answer Expenses incurred for Statutory Meeting , Funds raised by the co
, Utilisation of funds

Question For which activity FDI is not prohibited?
Correct Answer Insurance
Your Answer Insurance

Question How can you compute available surplus under section 5?
Correct Answer Gross profit less deductions , Direct tax calculated in accordance
employer for immediately preceding accounting year
Your Answer Gross profit less deductions , Direct tax calculated in accordance
employer for immediately preceding accounting year
True/False
Question Any gratuity payable on termination of employment is included in
wages.
Your Answer False
True/False
Question Deductions for income tax, payable by the employed person is
permissible.
Correct Answer True
Your Answer True
Select The Blank

Question The Forms 8 &13 should be filed in ________ to ragistrar of com
Correct Answer Triplicate
Your Answer Duplicate
True/False
Question A company can be incorporated with the name using words Hind
India.
Correct Answer True
Your Answer False
True/False
Question It is not obligatory for the board of directors to lay down the code
conduct for all the board members.
Your Answer False
True/False
Question Wages includes any remuneration payable under any award or
settlement between the parties or order of court.
Correct Answer True
Your Answer True

Question The Document spelling out internal management of the Company
Correct Answer Articles of Association
Your Answer Articles of Association

Your Answer Employed persons , Salary less than 1600 per month
True/False
Question FEMA is also applicable to agencies outside India that are contro
residents in India.
Correct Answer True
Your Answer True

Question For registering certain resolutions, following documents are subm
Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory state
Your Answer Form 23 , Certified copy of resolution , Copy of explanatory state

Question Section 24 provides bar to entertain suits by the court for recover
wages in so far as the sum claimed falls within which of the follow
categories :-
Correct Answer For which any application claim has already been presented , Dir
of claim already given' , Amount adjudged is not due to penalty
Your Answer For which any application claim has already been presented , Dir
of claim already given' , Amount adjudged is not due to penalty

Question Maturity period for USD 5 million scheme is :-
Correct Answer Three years
Your Answer Ten years

Question A person can not be appointed as managing or whole time direct
more than :-
Correct Answer Two companies
Your Answer Two companies

Question Every auditor who has in receipt from the company of the intimat
his appointment, has to inform Registrar in writing that he has ac
or refused to accept the appointment within :-
Your Answer 30 Days

Question Who fixes the compensation to be paid to the non executive direc
Correct Answer Board of Directors
Your Answer Executive Directors

Question Remittance completely prohibited on :-
Correct Answer Dividend balancing , Telephone expanses , Interest on funds
Your Answer Dividend balancing , Telephone expanses , Interest on funds
Select The Blank

Question No loan or investment shall be made or guarantee given by comp
unless ________ is passed at the meeting by the board.
Correct Answer Resolution
Your Answer Resolution
True/False
Question Wages includes the value of any house accommodation or suppl
light and water.
Your Answer False
Select The Blank

Question Any payment in respect on ________ can be deducted from the
of an employed person.
Correct Answer Fidelity guarantee bond
Your Answer Fidelity guarantee bond

Question A director can hold place of profit by :-
Correct Answer Special resolution
Select The Blank


Correct Answer Pay less than minimum wages , Pay less than fixed wages ,
Your Answer Pay less than minimum wages , Pay less than fixed wages ,
True/False
Question Authorized dealer is required to avail license under the exim polic
force.
Correct Answer True
Your Answer True
Select The Blank

Question A statement of all transactions with the related parties including t
basis shall be placed before the ________.

Question Who is not entitled to bonus?
Correct Answer An apprentice , Employee employed through contractors
Your Answer An apprentice , Employee employed through contractors

Question What is the optimum combination of Board of Directors?
Correct Answer Managing Directors and Secretary
Your Answer Managing Directors and Secretary
Select The Blank

Question As per section ________ it is obligatory on every person respons
payment.
Correct Answer 4
Your Answer 4

Question FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate
Your Answer Retail trading , Gambling & betting , Housing & real estate
True/False
Question Every company shall keep a register showing the particulars in re
of every loan or investment made, guarantee given or security pr
Correct Answer True
Your Answer True
True/False
Question Wages includes any travelling allowance for travel concession.
Your Answer False
Select The Blank

Question If an employer derives profit in any of the first ________ years he
Correct Answer 5
Your Answer 5
Bottom of Form
Question
Correct Answer
Your Answer
Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for import of
goods.
Correct Answer
Letter of credit
Your Answer
Letter of credit
Question
Correct Answer
Managers
Your Answer
Managers
Question
As per the provisions of Companies Act 1956, company can issue shares with :-
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
Question
Correct Answer
Direct tax
Your Answer
Direct tax
Question
Correct Answer
Your Answer
Question
Correct Answer
Tramway service or motor transport service engaged carrying passengers of hire or
reward , Dock wharf jetty , Plantation
Your Answer
Tramway service or motor transport service engaged carrying passengers of hire or
reward , Dock wharf jetty , Plantation
True/False
Question
Correct Answer
True
Your Answer
True
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Question
Correct Answer
Fully paid up
Your Answer
Fully paid up
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
provided fund.
Correct Answer
False
Your Answer
False
Question
ECB stands for :-
Correct Answer
Your Answer
Question
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Select The Blank
Question
Correct Answer
Royalty
Your Answer
Royalty
Question
Correct Answer
Your Answer
Question
Correct Answer
Remuneration under any award , Settlement between the parties or order of court ,
Overtime
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Every company has to appoint an auditor to audit the accounts of the company and
has to fix remuneration to be paid to the auditor.
Correct Answer
True
Your Answer
True
Question
Correct Answer
FERA
Your Answer
FERA
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948

Select The Blank
Question
The definition of ECB in India is partly in alignment with ________ Act.
Correct Answer
FERA
Your Answer
FERA
Select The Blank
Question
Correct Answer
Internal management
Your Answer
Internal management
Question
Correct Answer
Your Answer
Question
Correct Answer
Less than Rs 1600
Your Answer
Less than Rs 1600
Select The Blank
Question
________ of the company has a right to take inspection of the books of account.
Correct Answer
Any Director
Your Answer
Any Director
True/False
Question
Correct Answer
False
Your Answer
False
Select The Blank
Question
The recommendations of audit committee relating to financial management shall be
________.
Correct Answer
Binding
Your Answer
Binding
Question
Correct Answer
Your Answer
Employed persons , Salary less than 1600 per month , Salary less than 1200 per
month
Question
Correct Answer
Your Answer
True/False
Question
Directors' Report may contain details/ state of affairs of its subsidiaries.
Correct Answer
True
Your Answer
True
True/False
Question
A part time worker as sweeper engaged in regular business is entitled bonus.
Correct Answer
True
Your Answer
True
Question
In which case did the Bombay high court observe the general purpose of the act?
Correct Answer
Your Answer
Select The Blank
Question
First AGM should be held within ________ from closure of financial year.
Correct Answer
9 months
Your Answer
18 months
Question
Correct Answer
Your Answer
Select The Blank
Question
Correct Answer
Subscribe
Your Answer
Subscribe
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Special Resolution
Special Resolution

Ordinary Resolution
ROC
Select The Blank
Question
Correct Answer
Power of Attorney
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Company can not issue shares with differential voting/ dividend rights.
Correct Answer
False
Your Answer
False
True/False
Question
The Board has power to alter Articles of Association being internal document.
Correct Answer
False
Your Answer
True
Question
Correct Answer
Your Answer
Question
Correct Answer
In 1948
Your Answer
In 1948
True/False
Question
No additional fees is payable on increased authorised capital since already paid on
original authorised capital.
Correct Answer
False
Your Answer
False
Bottom of Form
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
Correct Answer
Central govt.
Your Answer
Central govt.
Question
Correct Answer
Your Answer
Question
FEMA?
Correct Answer
Your Answer
Select The Blank
Question
Correct Answer
1948
Your Answer
1948
Select The Blank
Question
Under section ________ period in respect of which wages would be paid would be
determined.
Correct Answer
3
Your Answer
5
Select The Blank
Question
Correct Answer
Employer
Your Answer
Employer
Question
Correct Answer
Insurance
Your Answer
Insurance
Question
Correct Answer
to class of shares
Your Answer
Select The Blank
Question
charge.
Correct Answer
Responsibility
Your Answer
Responsibility
Select The Blank

Question
Correct Answer
31st March
Your Answer
31st March
Question
If an auditor after his appointment becomes subject to any of the disqualifications, it
is treated that the office is :-
Correct Answer
Vacated
Your Answer
Vacated
Question
Correct Answer
Dividend recommended , Financial position of the company , Amounts transferred
to Reserves
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Internal auditor
Doing legal things
Insolvent
Moral turpitude
Call on share
Select The Blank
Question
Correct Answer
3
Your Answer
3
True/False
Question
Correct Answer
True
Your Answer
True

Question
Correct Answer
Your Answer
True/False
Question
water.
Correct Answer
False
Your Answer
False
True/False
Question
A temporary workman is not entitled to bonus though he works for a few days in the
organisation.
Correct Answer
False
Your Answer
True
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
Your Answer
Question
Correct Answer
30.6.2006
Your Answer
30.6.2006
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors

ROC
Books of Account
Form 23AA
Registered Office
Form 23AA
True/False
Question
Wages includes any remuneration payable under any award or settlement between
the parties or order of court.
Correct Answer
True
Your Answer
True
Question
Correct Answer
Rs. 2 lac p.m.
Your Answer
Rs. 5 lac p.m.
Question
Correct Answer
external auditors , Reviewing the company's financial and risk management policies
Your Answer
external auditors , Reviewing the company's financial and risk management policies
Question
Correct Answer
Your Answer
Select The Blank
Question
As per section ________ it is obligatory on every person responsible for payment.
Correct Answer
4
Your Answer
2
True/False
Question
Correct Answer
False
Your Answer
False
Question
Correct Answer
5 members in person
Your Answer
5 members in person
True/False
Question
Correct Answer
True
Your Answer
True
Question
Correct Answer
Your Answer
Select The Blank
Question
Preference shareholders have ________ to get dividend over equity share holders.
Correct Answer
Preferential right
Your Answer
Preferential right
True/False
Question
employment.
Correct Answer
True
Your Answer
True
True/False
Question
Correct Answer
True
Your Answer
True
Select The Blank
Question
As per section 5 in case of railways if the persons employed is less than ________
the wages shall be paid before the expiry of 7th day.
Correct Answer
1000
Your Answer
1000
Question
employees ?
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Correct Answer
True
Your Answer
True

Question
Correct Answer
Ordinary resolution
Your Answer
Ordinary resolution
True/False
Question
After completion of Ordinary business other business is transacted at Extra ordinary
General Meeting.
Correct Answer
False
Your Answer
True
True/False
Question
Correct Answer
False
Your Answer
False
Bottom of Form
Legal aspects of finance –saroj -1

Correct Answer 1948
Your Answer 1948
Select The Blank

Question For Special Resolution, votes cast in favour of the resolution should be ________ times more than votes
cast against the resolution.
Correct Answer 3
Your Answer 3
Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory statement
Your Answer Form 23 , Certified copy of resolution , Draft resolution

Your Answer Employed persons , Salary less than 1600 per month , Salary less than 1200 per month

Question Under which circumstances will the worker not receive wages for full normal working days ?
Correct Answer If failure to work is caused by unwillingness to work , Not by omission of the employer to
provide him with work
Your Answer If failure to work is caused by unwillingness to work , Not by omission of the employer to provide
him with work , He works for more than full working hours

Correct Answer Remuneration by way of salaries , Allowances , Expressed in terms of money
Your Answer Remuneration by way of salaries , Allowances , Expressed in terms of money

Question Who is an independent director?
Correct Answer Non executive director , Who receives director remuneration , Who is not related to the promoters
Your Answer Non executive director , Who receives director remuneration , Who is not related to the promoters
Select The Blank


Question Company has to make application to central government, in case of appointment of managing director is
not made accordance with part I & II of schedule XIII, within :-
Your Answer 45 days
Select The Blank

Correct Answer NCD
Your Answer RTO
Select The Blank

Question Under section ________ period in respect of which wages would be paid would be determined.
Correct Answer 3
Your Answer 3
True/False
Question A piece rated worker is entitled to bonus.
Correct Answer True
Your Answer False

Question What is the minimum salary under which the persons are covered in this act?
Select The Blank

Your Answer Doctor
Match The Following

dismissed employee for bonus Gannon India vs. niranjan das Gannon India vs. niranjan das
part time employee entitled to bonus automobile karmachari sang vs. industrial tribunal 1970 automobile karmachari
sang vs. industrial tribunal 1970
retrenched employee entitled for bonus' east Asiatic company vs. industrial tribunal 1961 east Asiatic company vs.
industrial tribunal 1961
probationer for bonus' bank of madura vs. employees union 1970 bank of madura vs. employees union 1970
True/False
Correct Answer True
Your Answer False

Question FEMA Norms are compatible with :-
Correct Answer FERA
Your Answer FERA


Question The register in respect of every investment or loan made, contains
Correct Answer The name of body corporate , The amount, terms & conditions & purpose of investment or loan
or security or guarantee , The date on which the investment or loan has been made
Your Answer The name of body corporate , The amount, terms & conditions & purpose of investment or loan or
security or guarantee , The date on which the investment or loan has been made
True/False
Question Deductions for income tax, payable by the employed person is permissible.
Correct Answer True
Your Answer True
True/False
Question Financial year and calendar year are one and the same thing.
Your Answer False

Correct Answer All remuneration other than in respect of overtime work of the work done in such employment
Your Answer All remuneration including overtime

Question In case of cost audit, the report of cost auditor has to be submitted to central government, within :-
Your Answer 90 Days

Question Books of account with respect to following are required to be kept :-
Correct Answer Money received & expended , Sales & purchases of goods , Assets & liabilities
Your Answer Shares of the company bought & sold by the members , Money received & expended , Sales &
purchases of goods

Question Appointment of receiver under sec.137 containt
Correct Answer Name , address and date of appointment of receiver , date on which the receiver ceased to act
Your Answer Name , address and date of appointment of receiver , date on which the receiver ceased to act ,
Receivers Professional qualification

Question In the case of prevention of operation and mismanagement application is to be made to company law
board by
Correct Answer Member
Your Answer Member

Question Retiring director shall be deemed to be reappointed unless :-
Correct Answer He has expressed his unwillingness to be re-appointed , He is disqualified for appointment ,
Resolution for reappointment has been put to vote & lost
Your Answer He has expressed his unwillingness to be re-appointed , He is disqualified for appointment ,
Resolution for reappointment has been put to vote & lost
Select The Blank

Question If an employer derives profit in any of the first ________ years he has to pay bonus for that year.
Correct Answer 5
Your Answer 5
True/False
Question Every company has to appoint an auditor to audit the accounts of the company and has to fix
remuneration to be paid to the auditor.
Correct Answer True
Your Answer True
True/False
Question Senior managers are members of management, one level below the executive director.
Correct Answer True
Your Answer True

Correct Answer Pay less than minimum wages , Pay less than fixed wages , Contravenes any rule or order
Your Answer Pay more than fixed wages , Pay less than minimum wages , Pay less than fixed wages
True/False
Question Board may appoint additional directors.
Correct Answer True
Your Answer True

Question Which report is received by the shareholders annually ?
Correct Answer Directors report
Your Answer Directors report
Select The Blank

Question The recommendations of audit committee relating to financial management shall be ________.
Your Answer Recommendary
Select The Blank

Question Purchase of foreign securities by resident employee of Indian Software Company, should not exceed
________.
Correct Answer US $ 50000
Your Answer US $ 50000
True/False
Question Former director can take inspection of books of account for the years when he was director.
Your Answer False


Select The Blank

Question Director has to vacate his office, if he has been ________ by a court of any offence involving moral
turpitude.
Correct Answer Convicted
Your Answer Convicted
True/False
Question Any gratuity payable on termination of employment is included in wages.
Your Answer True

Your Answer Solvent
Match The Following

Notice Circulation for day, time of meeting Circulation for day, time of meeting
Sole selling agent Have exclusive right to sale for company in specified area Have exclusive right to sale for
company in specified area
Audit committee Appointed for specific purpose related to audit Appointed for assistance to board of directors
Quorum Minimum required persons for meeting Minimum required persons for meeting
True/False
Question Employee includes an out worker to whom any article or material are given out by another person for
repair or cleaning.
Correct Answer True
Your Answer False
Select The Blank

Question The Postal ballot paper should be returned to the company within ________ from the dispatch of ballot
paper.
Your Answer 15 days

Your Answer Redeemable , Convertible , Party convertible and redeemable

Your Answer He is authorised by the Board in this regard
Select The Blank

Question Copies of annual accounts are to be filed within ________ days from AGM with ROC.
Your Answer 21 days
Legal Aspects of Finance
Question
Correct Answer
Your Answer
Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for
import of goods.
Correct Answer
Letter of credit
Your Answer
Letter of credit
Question
Correct Answer
Managers
Your Answer
Managers
Question
As per the provisions of Companies Act 1956, company can issue shares
with :-
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
Question
Correct Answer
money
Your Answer
money
Question
What does an industrial or other establishment means as per section
2II?
Correct Answer
Your Answer
True/False
Question
Correct Answer
True
Your Answer
True
Question
s
Correct Answer
In 1936
Your Answer
In 1936
Question
Correct Answer
Fully paid up
Your Answer
Fully paid up
Question
Correct Answer
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Wages include any contribution paid by the employer to any pension
Correct Answer
False
Your Answer
False
Question
ECB stands for :-
Correct Answer
Your Answer
Question
Correct Answer
Section 7(2)
Your Answer
Section 7(2)
Select The Blank
Question
Correct Answer
Royalty
Your Answer
Royalty
Question
Correct Answer
Your Answer
Question
Correct Answer
Remuneration under any award , Settlement between the parties or
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
Every company has to appoint an auditor to audit the accounts of the
Correct Answer
True
Your Answer
True
Question
Correct Answer
FERA
Your Answer
FERA
Match The Following
Question
Correct Answer
Your Answer
Section 2(vi)
Wages
Wages
Wages act
1936
1936
Factories act
1948
1948
Select The Blank
Question
The definition of ECB in India is partly in alignment with ________
Act.
Correct Answer
FERA
Your Answer
FERA
Select The Blank
Question
Correct Answer
Internal management
Your Answer
Internal management
Question
Section 24 provides bar to entertain suits by the court for recovery
of wages in so far as the sum claimed falls within which of the
following categories :-
Correct Answer
penalty
Your Answer
penalty
Question
What is the minimum salary under which the persons are covered in
this act?
Correct Answer
Less than Rs 1600
Your Answer
Less than Rs 1600
Select The Blank
Question
of account.
Correct Answer
Any Director
Your Answer
Any Director
True/False
Question
Correct Answer
False
Your Answer
False
Select The Blank
Question
The recommendations of audit committee relating to financial
Correct Answer
Binding
Your Answer
Binding
Question
Correct Answer
Your Answer
Employed persons , Salary less than 1600 per month , Salary less than
1200 per month
Question
Correct Answer
Your Answer
True/False
Question
Directors' Report may contain details/ state of affairs of its
subsidiaries.
Correct Answer
True
Your Answer
True
True/False
Question
A part time worker as sweeper engaged in regular business is entitled
bonus.
Correct Answer
True
Your Answer
True
Question
In which case did the Bombay high court observe the general purpose
of the act?
Correct Answer
Your Answer
Select The Blank
Question
First AGM should be held within ________ from closure of financial
year.
Correct Answer
9 months
Your Answer
18 months
Question
Correct Answer
Your Answer
Select The Blank
Question
Correct Answer
Subscribe
Your Answer
Subscribe
Question
Correct Answer
Your Answer
Match The Following
Question
Correct Answer
Your Answer
Interim Dividend
Board of Directors
Board of Directors
Special Resolution
Special Resolution

Ordinary Resolution
ROC
Select The Blank
Question
Correct Answer
Power of Attorney
Your Answer
Question
Correct Answer
Your Answer
True/False
Question
rights.
Correct Answer
False
Your Answer
False
True/False
Question
The Board has power to alter Articles of Association being internal
document.
Correct Answer
False
Your Answer
True
Question
Correct Answer
available
Your Answer
available
Question
Correct Answer
In 1948
Your Answer
In 1948
True/False
Question
No additional fees is payable on increased authorised capital since
already paid on original authorised capital.
Correct Answer
False
Your Answer
False
PART - I
Q.1 Explain the deductions which are authorized under the payment of wages Act,
1936.
Ans DEDUCTIONS FROM WAGES
According to section 7(1) every payment made by the employed person to the employer or his
agent shall be deemed to be a deduction from wages. Deductions authorized as per section
7(2) can be made from the wages. The list of the deduction are as under –
a) Fines
b) Deduction for absence from duty
c) Deduction for damage to or loss of goods or loss of money
d) Deduction for house accommodation
e) Deduction for the amenities and services
f) Deduction for recovery of advances
g) Deduction for recovery of loans
h) Deduction for income tax
i) Deduction under the order of a Court of authority
j) Deduction in respect of provident fund
k) Deduction for payment to company-operative societies.
l) Deduction for payment to a Scheme of Insurance of a Post office
m) Deduction for payment of Life Insurance Premium.
n) Deduction for the purchase of Government Securities.
o) Deduction for payment to post office saving bank.
p) Deduction for payment of contribution to certain funds.
q) Deduction for payment of certain fees
r) Deduction in respect of fidelity guarantee bond.
s) Deduction for certain losses incase of railway administration
t) Deductions for payment to Prime Minister’s National relief fund or any other fund
u) Deductions for contribution to insurance scheme.
The total amount of all categories of deduction from the wages of any employed person, in any
wage period, should not exceed the following limits prescribed by section 7(3).
1) 75% of the wages payable in case where such deductions are wholly or partly made for
payments to company-operative societies under section 7(2)(i) of the Act.
2) 50% of the wages payable in any other case-
provided that where the total deductions authorized exceed 75% or as the case may be,
50% of the wages the excess may be recovered in such manner as may be prescribed.
Brief discussion on the above list of deductions are as under:-

a) Fines – Deductions by way of fine from the wages of an employed person shall be made
only in accordance the provision of the Act. Section 8 lays down the general requirements
for imposition and deduction of fine. The total amount of fine which may be imposed in any
wage period on any employed person shall not exceed an amount equal to three percent of
the wages payable to him in respect of the wage period. No fine shall be imposed on any
employed person who is under the age of fifteen years. No fine imposed on any person shall
be recovered from him by installments or after the expiry if sixty days from the day on which
it was imposed. Every fine shall be deemed to have been imposed on the day of the act or
omission in respect of which it was imposed. All realizations of fines shall be applied only to
such purposes beneficial to the persons employed in the factory or establishments as are
approved by the prescribed authority.
b) Deduction for absence from duty – Section 9 of the Act lays down that any such deductions
may be made on account of the absence of employed person from the place or places
where, by the terms of the employment, he is required to work. It is further provided that
such absence may be for the whole or any part of the period during which he is so required
to work. An employed person shall be deemed to be absent from the place where he
required to work if, although present in such place, he refuses to carry out his work in
pursuance of stay in strike or for any other cause which is not reasonable in the
circumstances. The amount of such deductions must bear to his wages the same proportion
as his absence bears to the total within the wage period during which he was by the terms of
his employment required to work.
c) Deductions for damages to or loss of goods or loss of money – Clause (C) of security 7 (2)
authorizes deduction for damage to or loss of goods expressly entrusted to the employed
persons for custody or for loss of money for which he is required to account, where such
damage or loss is directly attributable to his neglect or default.
d) Deduction for house accommodation supplied by the employer or by Government or any
housing board set up under any law for the time being in force (whether the Government or
the board is the employer or not) or any other authority engaged in the business of
subsidizing house accommodation which may be specified in this behalf by the state
government by notification in the official gazette.
e) Deduction for the amenities and services supplied by the employer as the State Government
or any officer specified by it in this behalf may be general or special order, authorize.
f) Deductions for recovery of advances of whatever nature (including advances for travelling
allowance or conveyance allowance) and the interest due in respect thereof, or for
adjustment of over payments of wages.
g) Deduction for recovery of loans made from any fund constituted for the welfare of labour in
accordance with the rules approved by the State Government, and the interest due in
respect thereof.
h) Deduction for income tax payable by the employed person is permissible. It is the duty of the
employer to deduct the income tax payable by the employee, subject to certain exceptions,
and deposit the same in the account of the Government.
i) Deductions from wages can be made under the order of a Court or other Authority
competent to make such order. The authority referred here is the Statutory Authority,
authorized by some statutory provisions. Thus, a Private Roadways co. is not competent
authority to make order for the deductions of wages. Every employer is not authority, even
where an employee agrees to the deductions to be made by the employer, the employer
does not become an authority and therefore would not get benefit of this provision.
j) Deductions in respect of provident fund- an employed person may contribute to a scheme of
provident fund. He may also be granted advance form such provident fund.
k) Deductions for payment to co-operative societies – Deductions for any payment to Co-
operative societies is allowed under following conditions given in section 7 (2) (j) read with
section 13.
1. the cooperative society is approved by the State Government or any official
specified by it in this behalf.
2. this deductions are in conformity with rules laid down by the State Government in
this respect.
l) Deductions for payments to a scheme of insurance maintained by the Indian post office, is
allowed under Section 7(2) (j), provided deductions are made subject to such conditions as
the State Government may impose under section 13.
m) Deductions can be made for payment of any premium to the life insurance corporation of
India, on the life insurance policy of the employed person. But the deduction is subject to
following conditions
i) It shall be made only after obtaining written authorization of the
employed person.
ii) If the state Government has imposed any condition, no conditions
can be made unless these conditions are complied with (section 13).
n) Deductions are allowed for the purchase of securities of:
i) The Government of India, or
ii) Any state Government
o) Section 7(2) authorizes deduction for being deposited in any post office saving bank in
furtherance of any savings scheme of central or any State Government.
p) Deductions for payment of contribution to certain funds – Deductions can be made with the
written authorization of the employed person, for the payment of his contribution to any fund
constituted by the employer or a trade union registered under the Trade Union Act, 1926 for
the welfare of the employed persons or the members of their families or both, and approved
by the State Government or any officer specified by it in this behalf, during the continuance
of such approval.
q) Deductions for payment of certain fees – Deductions can be made, with the written
authorization of the employed person, for payment of the fees payable by him for
membership of any trade union registered under the Trade Union Act, 1926.
r) Deductions in respect of Fidelity Guaranteed Bond – Any payment of Insurance premium of
fidelity Guarantee Bond can be deducted from the wages of an employed person.
s) Deductions can be made from the wages of a person employed in a railway administration
for the recovery of losses sustained by a railway administration.
t) Deductions can be made with the written authorization of the employed person, for
contribution to the Prime Minister’s National Relief Fund or to such other fund as the Central
Government may, by notification in the official gazette, specify.
u) Deductions for contributions to Insurance scheme – Deductions can be made for
contributions to any insurance scheme framed by the Central Government by the benefit of
its employees.
Q.2 Define an “Accident” as given in the workmen’s Compensation Act, 1923. When it is said to arise out of
and in the course of an employment?
Ans ACCIDENT
The word Accident has not been defined in the Act. It means any unexpected mishap, untoward
event or consequences brought about by an unanticipated act which could not be provided
against. Whether particular occurrence is accident or not it must be looked upon not only from
the point of view of the person who cause it but also from the point of view of the person who
suffers it.
ARISING OUT OF AND IN THE COURSE OF EMPLOYMENT:

The expression “arising out of “ suggests the cause of accident and the expression “in the
course of” points out to the place and circumstances under which the accident takes place and
the time when it occurred. A Casual connection between the injury by accident and the
employment is necessary. The direct connection between the injury caused by an accident and
the employment of the workman is always not essential. The words arising out of employment
are understood to mean that during the course of the employment injury has resulted from some
risk incidental to the duties of the service which unless engaged in the duty owing to the master
it is reasonable to believe the workman would not otherwise have suffered. The employee mush
show that he was at the time of injury engaged in the employer’s business or in furthering that
business and was not doing something for his own benefit. In the course of employment refers
to the period of the employment and the place of work it is neither limited to the period of actual
labour not includes acts necessitated by the workman’s employment. The employee mush show
that he was doing something in discharge of a duty to his employer directly or indirectly imposed
upon him by his contract of service.
In State of Rajasthan V Ram Prasad and another the workman died due to natural lightening
while working at the site. It was held by the Supreme Court that in order that workman may
succeed in his claim for compensation, it is no doubt true that the accident must have casual
connection with the employment and arise out of it but if the workman is injured as a result of
natural force of lightening though it in itself has no connection with employment of deceased
Smt. Gita, the employer can still be held liable if the claimant shows that the employment
exposed the deceased to such injury. In the present case the deceased was working on the site
and would not have been exposed to such hazard of lightening had she not been working so.
Therefore the appellant was held liable to pay compensation.
Q.5.
a) Gratuity when becomes payable?
b) Who are entitled for payment of Gratuity?
Ans
a) When is Gratuity payable? :
By Virtue of Section 4(1), Gratuity shall be payable to an employee on the termination of his
employment after he has rendered continuous service for not less than five years-
i) On his superannuation or
ii) On his retirement or resignation or
iii) On his death or disablement due to accident or disease
It has been provided that the completion of continuous service of five years shall not be
necessary where the termination of the employment of any employee is due to death or
disablement.
b) Who are entitled for payment of Gratuity?

It is payable to the employee himself but in the case of the death of the employee, gratuity
payable to him shall be paid to his nominee or if no nomination has been made, to his heirs
and where any such nominees or heirs is a minor, same for the benefit of such minor in such
bank or other financial institution, as may be prescribed until such minor attains majority.
Q.4 What is procedure for determination and recovery of dues from employer under
the employee’s provident fund and miscellaneous provision act?
Ans MODE OF RECOVERY OF MONEY’S DUE FROM EMPLOYERS
To invoke section 8 of the Act, the employer must be under a legal liability to transfer the assets.
An amount due may, if the amount is in arrear, be recovered in the manner specified in Section
8-B to 8-G. Recovery may be made from the employer in relation to an establishment to which
any scheme or, the Insurance scheme applies of any amount lying in arrear in respect of the
following:
1) Any contribution payable to the fund or as the case may be, the Insurance Fund; or
2) Accumulations in any provident fund standing to the credit of the employees who become
members of the Fund or, as the case may be the Insurance fund established under the
Scheme or, the Insurance Scheme; or
3) Accumulations to the credit of an employee exempted under section 17(1), 17(1-A) and
17(2) of the Act; or
4) Damages recoverable under Section 14-B; i.e., for default in the payment of any contribution
to the fund, family pension fund or the insurance fund or in the transfer of accumulation in
any provident fund or in the transfer of accumulations to the credit of an employee exempted
under section 17(1), 17(1-A) and 17(2) of the Act; or
5) Damages recoverable under section 14-B for default in the payment of any charges payable
under other provision of this Act or the scheme or the Insurance Scheme or under any of the
conditions specified under section 17 of the Act.
6) Any charges payable by the employer under any other provisions of the Act or scheme or
the Insurance Scheme.
Similarly recovery may also be made, in the manner specified in Section 8-B to 8-G from an
employer in relation to an exempted establishment, of any amount remaining in arrear in respect
of the following:
1) Damages recoverable under section14-B, as stated above in paras 4 and 5 of this section.
2) Any charges payable by the employer to the Appropriate Government under any provisions
of this Act or under any of the conditions specified under section 17 or in respect of the
contribution payable by him towards the Family Pension Scheme under the said Section 17.
But for the collection of any arrears the Provident Fund Commissioner must send the recovery
certificate to the collector of the district or the place where his office is situated. The collector
and not the Provident Fund Commissioner shall send the recovery certificate to the collector of
another district. In a proceeding to recover the employer’s contribution, the property of the
employer attached by the court, subject only to the burden of the entire mortgage held by the
Bank, notwithstanding the fact that the demand in respect of the employer’s contribution amount
of the employer’s contribution has not been determined, no proceedings for recovery can be
taken under this section.
Q.6. What are the different kinds of benefits provided under the employee’s State
Insurance Act, 1948, discuss in brief.
Ans BENEFITS
Section 46 lays down the following benefits admissible to the insured persons on their
dependents on other persons as mentioned.
a) Sickness benefits –
b) Maternity benefits –
c) Disablement benefits –
d) Dependents benefits –
e) Medical benefits –
f) Funeral Expenses –
Brief discussions on above benefits are as under:

a) Sickness Benefit:
In terms of section 46(1)(a) Sickness benefits include, periodical payment to any insured
person in case of his sickness certified by a duly appointed medical petitioner or any person
possessing prescribed qualifications, the sickness benefits shall be admissible at the rate
specified in the Schedule, but he shall not be entitled to the benefit for the first two days of
sickness. In the case of a spell of sickness following at an interval of not more than 15 days,
the spell of sickness benefit was last paid. The sickness benefit shall not be paid to any
person for more than 91 days in any two consecutive benefits periods.
b) Maternity Benefit:
In terms of Section 46(1) (b), it includes periodical payment to an insured woman in case of
confinement or miscarriage or sickness arising out of pregnancy, confinement, premature
birth of child or miscarriage. Such women will be certified to be eligible for such payment by
an authority specified in this behalf by the regulations.
c) Disablement Benefit:
Sec 46 (1) (c) includes periodical payment to an insured person suffering from disablement
as a result of an employment injury, sustained as an employee under this act and certified to
be eligible for such payments by an authority specified in this behalf by the regulations. A
person shall be qualified to claim benefits for temporary disablement for not less than 3 days
(excluding the day of accident) for the period of such disablement sustained as an employee
under the act. A person shall be qualified to claim periodical payment for permanent
disablement sustained as an employee under the Act, whether total or partial for such
disablement. Sec 51, 51 A, 51 B, 51 C, 51 D and 52 A deal with the disablement benefits.
d) Dependent Benefits:
In terms of Sec 46 (1)(d), it includes periodical payments to such dependent of an insured
person who dies as a result of an employment injury sustained as an employee under this
act. Section 52 provides for the payment of these benefit to the dependent of the deceased
person, if an insured person dies as a result of an employment injury, sustained as an
employee under this act.
e) Medical Benefits:
In terms of Sec 46(1)(e), it includes medical treatment for insured person or his dependents.
Sec 56 provides that an insure person or a member of his family, whose conditions requires
medical treatment and attendance shall be entitled to receive medical benefits. Such
medical benefit may be given either in the form of out patient treatment and attendance in a
hospital or dispensary, clinic or other institutions or by visits to home of the insure person or
treatment as in-patient in hospital or other institutions.
f) Funeral Expenses:
Sec 46(1)(f) provides for funeral benefits to the eldest surviving member of the family of an
insured person, who had died, towards the expenditure on the funeral of the diseased
insured person or where the insured person did not have a family or was not living with his
family at the time of his death to the person who actually incurs the expenditure on the
funeral of the diseased insured person, provided that the amount of such payments shall not
exceed Rs. 2500 and the claim for such payment shall be made within three months of
death of the insured person or with such extended period as the corporation or any officer,
or authority authorized by it in this behalf may allow.
PART – II
Q.1. What is the procedure for the incorporation of the company?
Ans STEPS FOR INFORPORATION OF THE COMPANY

In order to register a company under Indian Companies Act the promoter of a company has to
make an application for availability of name by suggesting four names. The name should
indicate the activity of the company and has to mention the main object to be pursued by the
company on its incorporation. The applicant has to give the names of two subscribers in case of
private companies and names of seven subscribers in public companies. In the application form
the proposed authorized capital in case of Private company should be minimum rupees one
lakh and in case of Public company it should be minimum rupees five lakh. The application for
availability of name should be in a Form 1A. Once registrar of companies approves the name
the papers for incorporation of company should be filed within six months for the date of issue of
letter.
1) The promoters of the company have to prepare Memorandum of Association and Articles of
association of the company. In the memorandum of Association of the company the object
clauses of the company are divided into three categories;
a) Main object to be pursued by the company on its incorporation
b) Object incidental or ancillary to the attainment of main object
c) Other objects
In the MOA the company has to state that the liability of the members is limited and has to
mention the Authorised capita of the company and the division of the Authorised capital. The
MOA spells out the activities, which the company is Authorised, to do and the company
cannot start any activity, which is outside the scope of MOA.
2) ARTICLES OF ASSOCIATION (AOA)
The AOA of the company spells out the rules for the internal management of the company
such as shares, transfer of shares, board of Directors, procedure for Board meeting,
borrowing powers of the company, meetings of the shareholders and procedure for holding
the meeting of shareholders and the board.
3) At the time incorporation of the company the promoter of the company has to submit two
printed copies of MOA and AOA duly signed and stamped by the subscribers along with
Form 1, 18, 32 and 29 in case of public company.
Q.2 What are the requirements for holding Annual General Meeting and Extra Ordinary
Annual General Meeting?
Ans Annual General Meeting: Every company has to hold in each year a general meeting
called Annual General Meeting of the shareholders in addition to other meetings. There should
not be a gap of more than 15 months between two Annual General Meeting and the Annual
General Meeting must be convened on a working day and during the business hours of the
company. It should be held within 6 months from the closure of the financial year.
The first Annual General Meeting of the company should be held within 18 months from the date
of incorporation of the company and within 9 months from the closure of the financial year.
Annual General Meeting is considered for transacting the following ordinary business:
a. To receive, consider and adopt the accounts of the company and the directors report and
auditors report theron.
b. Declaration of dividend if any.
c. Re-appointment of directors retiring by rotation.
d. Appointment of auditor and to fix their remuneration.
Any other business to be transacted at the Annual General Meeting is called a special business
and the company has to give explanatory statement for passing special business. Annual
General Meeting should be held within the city, town or village where the registered office of the
company is situated and should be held within municipal limit or postal limit whichever is
greater.
If default is made in holding a Annual General Meeting the company and every officer of the
company who is in default shall be punishable with a fine, which may extend to Rs. 50,000 and
in case of continuing default with a further fine which may extend to Rs. 2,500 for every day
after the first during which such default continues.
Extra Ordinary Annual General Meeting:

Any general meeting other than the Annual General Meeting is called as the Extra Ordinary
Annual General Meeting. When approval of shareholders is required for certain business that
cannot be kept pending till the date of the ensuing Annual General Meeting. An Extra Ordinary
Annual General Meeting is convened the businesses transacted at the Extra Ordinary Annual
General Meeting are generally special businesses and the resolutions to be passed are either
special or ordinary resolution. Extra Ordinary Annual General Meeting can be held at any place
and not like the Annual General Meeting that can be held only at the place where the registered
office of the company is situated. The Directors on their own or on requisition from the
shareholders can convened Extra Ordinary Annual General Meeting.
If the company has received a requisition from the shareholders for calling Extra Ordinary
Annual General Meeting to transact certain business, the Board of Directors of the company has
to convene the meeting for transacting the business as per the requisition within twenty-one
days from the date of requisition. If the Board of Directors fails to convene the Extra Ordinary
Annual General Meeting within forty-five days from the date of requisition and are entitled to be
reimbursed the expenses incurred for calling Extra Ordinary Annual General Meeting.
Q.7 What are the committees required to be formed under Corporate Governance and
their functions?
Ans
1. Audit Committee: Every company shall have a qualified and independent audit
committee and shall comply the following:
a) The Audit committee shall have minimum three members and all the members
shall be non-executive director with the majority of them being independent.
b) All the members of the audit committee shall be financially literate and atleast
one member shall have accounting or related financial management expertise. The
financially literate means ability to read and understand basic financial statement i.e.
balance sheet, profit and loss account and cash flow statement.
A member shall be considered to have accounting or related financial management

expertise if he or she possesses experience in finance or accounting, or requisite
professional certification in accounting, or any other comparable experience or
background which results in the individual’s financial sophistication, including being or
having been a chief executive officer, chief financial officer or other senior officer with
financial oversight responsibilities.
c) The chairman of the committee shall be an independent director.

d) The chairman shall be present at Annual General Meeting to answer shareholder
queries.
e) The audit committee should invite such of the executives, as it considers
appropriate to be present at the meetings of the committee, but on occasions it may also
meet without the presence of any executives of the company.
f) The company secretary shall be the secretary of the committee.
ROLE OF AUDIT COMMITTEE:

a) Oversight of the company’s financial reporting process and the disclosure of its financial
information to ensure that the financial statement is correct, sufficient and credible.
b) Recommending the appointment and removal of external auditor, fixation of audit fee and
also approval for payment for any other services.
c) Reviewing with management the annual financial statements before submission to the
board, focusing primarily on;
i. Any changes in accounting policies and practices.
ii. Major accounting entries based on exercise of judgment by management.
iii. Qualification in draft audit report.
iv. Significant adjustments arising out of audit.
v. The going concern assumption.
vi. Compliance with accounting standards.
vii. Compliance with stock exchange and legal requirements concerning financial
statements.
viii. Any related party transactions.
d) Reviewing with the management, external and internal auditors, the adequacy of internal
control systems.
e) Reviewing the adequacy of internal audit function, including the structure jof the internal
audit department, staffing and ip; olikkiosleniority of the official heading the department,
reporting structure coverage and frequency of internal audit.
f) Discussion with internal auditors any significant findings and follow up thereon.
g) Reviewing the findings of any internal investigations by the internal auditors in to matters
where there is suspected fraud or irregularity or a failure of internal control systems of a
material nature and reporting the matter to the board.
h) Discussion with external auditors before the audit commences about nature and scope of
audit as well as post-audit discussion to ascertain any area of concern.
i) Reviewing the company’s financial and risk management policies.
j) To look in to the reasons for substantial defaults in the payment to the depositors, debenture
holders, shareholders and creditors.
2. Shareholders Committee:
Name of non-executive director heading the committee.
Name and designation of compliance officer.
Number of shareholders complaints received so far.
Number not solved to the satisfaction of shareholders.
Number of pending share transfers.
3. Remuneration Committee:
Brief description of terms of reference
Composition, name of members and Chairperson
Attendance during the year.
Remuneration policy.
Details of remuneration to all the directors as per format in main report.
Q.6 Whether charge is to be registered with the Registrar of Companies of loan

granted to the company? And if the charge is not registered, what is the position of the
lender?
Ans REGISTRATION OF CHARGES
Every company taking loan from the banks or financial institutions has to create a charge on the
assets of the company in favour of the banks or the lending institute. The necessary Form 8 &
13 for creation of charge along with the certified copy of the charged document i.e.
Hypothecation Deed or Term Loan Agreement should be signed by both the company and the
chargeholder/lender and filed with Registrar of Companies. The form should be filed within 30
days from the date of execution of the document with registrar of companies. However with
additional fees the Registrar of Companies has power to accept the Form within further period
of 30 days. This forms 8 & 13 should be filed in triplicate.
After receipt of this form the Registrar of Companies take on record and register the charges
and return 2 (two) copies of the same form one for the company and other for the chargeholder.
If there is any delay in filing Form 8 & 13 beyond 60 days from the execution of domument for
creation of charge, the company has to make a petition to the company law board for
condonation of delay. Usually when a Form is filed by the company with Registrar of companies
after 60 ddays from the date jof execution of the document the Registrar of companies issues a
notice to the company requesting to make a petition to the company law board for condonation
of delay in filing the form. The company law board after hearing the petiton passes an order in
regard to condonation of delay.
Q.5 Who can apply to the High Court for oppression and mismanagement of the
company and what steps he has to take before filing petition before the High Court?
Ans Application to Company law Board for relief in cases of oppression:
Any member of the company who complain that the affairs of the company are being conducted
in a manner prejudicial to public interest or in any manner oppressive to any member or
members may apply to the company law board for an order provided such members have right
to apply.
If on any application the company law board is of the opinion

a) that the company’s affairs are being conducted in a manner prejudicial to public
interest or in any manner oppressive to any member or members; and
b) that to wind up the company would unfairly prejudice such member or members, but
that otherwise the facts would justify the making of a winding up order on the ground that it
was just and equitable that the company should be wound up; the company law board may,
with a view to bringing to an end the matters complained of, make such order as it thinks fit.
Application to company law board for relief in cases of mismanagement:

1) Any members of a company who complain:
a) that the company’s affairs are being conducted in a manner prejudicial to public interest
or in any manner prejudicial to the interests of the company; or
b) that a material change not being a change brought about by or in the interests of any
creditors including debentureholders or any shareholders of the company has taken
place in t he management or control of the company whether by an alteration in its
Board of Directors or in the ownership of the company’s shares, or if it has no share
capital, in its membership, or in any other manner and that by reason of such change, it
is likely that the affairs of the company will be conducted in a manner prejudicial to
public interest or in any manner prejudicial to the interests of the company ; may apply
to the company law board for an order.
2) If on any application the company law board is of the opinion that the
affairs of the company are being conducted as aforesaid any, with a view to bringing to an
end or preventing the matters complained of, make such order as it thinks fit.
Right to apply
A member of the company shall have right to apply to the company law board for oppression
and mismanagement of the company provided application is made by members not less than
100 or by the members holding not les than one tenth of the total number of share in the share
capital of the company and in the case fof a company not having share capital not less than one
tenth of the total number of its member and the application can be made by any one or more of
its members having obtained consent in writing of the rest to make an application on their behalf
and for their benefit.
On the receipt of application the company law board hears both the companies as well as
petitioner and gives the suitable order to the company on the issue of oppression and
mismanagement of the company. In the case of urgency the company law board passes an
interim order before passing final order for regularizing the conduct of the company’s affairs
upon such terms and conditions.
The Central Government may appoint such number of persons as the company law board may
by order in writing specify as be necessary to effectively safeguard the interest of the company
or its shareholders or the public interest to hold office as directors thereof for such period not
exceeding 3 years on any occasion as it may think fit.
Q.3 What are the limits for inter-corporate investments and loans and upto what extent
board has power to make investments and grant loans?
Ans Inter-Corporate Investments And Loans
No company shall, directly or indirectly;
a) make any loan to any other body corporate
b) give any guarantee, or provide security, in connection with a loan made by any other person
to, or to any other person, by any body corporate and
c) acquire by way of subscription, purchase or otherwise the securities of any other body
corporate, exceeding sixty percent of its paid-up share capital and free reserves, or hundred
percent of it’s free reserves, whichever is more.
Provided that where the aggregate of the loans and investments so far made, the amounts for
which guarantee or security so far provided to or in all other bodies corporate, along with the
investment, loan, guarantee or security proposed to be made or given by the board, exceeds
the aforesaid limits, no investment or loan shall be made or guarantee shall be given or security
shall be provided unless previously authorized by a special resolution passed in a general
meeting.
No loan or investment shall be made or guarantee given by the company unless the resolution
is passed at the meeting by the board with the consent of all the directors present at the
meeting and if there is any term loan subsisting with the prior approval of the financial institution.
The loan to any body corporate shall be made at the rate of interest not less than that prevailing
bank rate as may be prescribed by the Reserve Bank of India from time to time. If the company
has made default for the payment of interest or repayment of deposit to the deposit holder then
it cannot give loan to anybody corporate or give guarantee or provide security to any person or
to make investment in the shares of any other company. Every company shall keep a register
showing the following particulars in respect of every investment or loan made, guarantee given
or security provided.

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