FINAL EXAMINATION SET - 1

MODEL QUESTION PAPER TERM – JUNE 2024

PAPER – 13 SYLLABUS 2022
CORPORATE AND ECONOMIC LAWS
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)

1. Choose the correct option: [15 x 2 = 30]

(I) (i) Majority of audit committee members of a company shall be__________________.

a. Executive director
b. Non-executive
c. Independent
d. None of the above

(ii) CFO is compulsorily to be appointed as one of the KMPs if the paid up capital is
minimum ₹ ______.
a. 5 crore
b. 10 crore
c. 15 crore
d. 20 crore

(iii) Change of registered office within a city, town or village requires______________.

a. Special Resolution
b. Board Resolution
c. Approval of Central Govt.
d. None of the above

(iv) The main authority under Competition Act is_____________.

a. Ministry of finance
b. Competitions Commission of India
c. RBI
d. NCLT

(v) In case of private company, internal auditor has to be appointed if the turnover
is_____________.
a. 100 cr or more
b. 150 cr or more
c. 200 cr or more
d. 300 cr or more

(vi) If a unit has investment in plant and equipment of ₹55 crore and turnover of ₹ 300
crore. It will be classified as _______________unit.
a. micro
b. small
c. medium
d. none of the above

1
Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – JUNE 2024
PAPER – 13 SYLLABUS 2022
CORPORATE AND ECONOMIC LAWS

(vii) FIU stands for:

a. Financial Intelligence unit
b. Financial Issue unit
c. Featured Intelligence Unit
d. None of the above
(viii) In case of triple bottom line approach, three Ps are:
a. people, profit and progress
b. people profit and planet
c. person, profit and planet
d. people, price and planet
(ix) A foreign entity cannot be:
a. implementing agency of CSR project in India
b. advisor
c. trainer
d. consultant
(x) SLR stands for:
a. Special Liquidity Ratio
b. Statutory Liquidity Reserve
c. Special Liquidity Reserve
d. None of the above
(xi) Automatic route in FDI means.
a. Prior permission of RBI not required
b. Prior permission of Central Govt. not required
c. Prior permission of neither RBI nor Central Govt.is required
d. None of the above
(II) CSR Ltd. is a Public Limited Company with the following details. Mr. Rajesh Kumar is
the Managing Director, with Sunil Arora and Rajiv Verma as full-time directors. Ms.
Khurana is a nominee director of the State Bank of India. Mr. Sabir Ali is an independent
director. During the year 2023-2024, an amount of ₹3.5 Crore could not be spent out of
the budget for CSR, leading to shortfall to that extent. (₹in Cr.)
Year Turnover Net Worth Profit
2021-2022 280 188 5
2022-2023 300 192 12
2023-2024 360 212 34
2024-2025 (Projected) 390 2220 42
Based on the above case study, you are required to answer the questions no. from (xii) to
(xv).
(xii) Company is CSR complaint company because of _____________.
a. Turnover
b. Net Worth
c. Profit
d. All of the above

2
Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – JUNE 2024
PAPER – 13 SYLLABUS 2022
CORPORATE AND ECONOMIC LAWS

(xiii) The minimum Budget for CSR for the year 2024-2025 will be ________________.
a. ₹8.2 cr.
b. ₹4.2 cr.
c. ₹10.2 cr.
d. ₹11 cr.

(xiv) CSR Committee shall constitute of –

a. MD and Full-Time Directors
b. MD and Ms. Khurana
c. MD, any of the Directors or Ms. Khurana and Mr. Sabir Ali
d. Both Full-Time Directors (or one full time director, Ms. Khurana) and Mr. Sabir
Ali

(xv) Unspent Amount of CSR budget, during last year, is to be _____________.

a. kept aside
b. added to Next Years’ Budget
c. deposited with Income Tax Authorities
d. deposited in a Special Account under Schedule VII

SECTION – B
(Answer any five questions out of seven questions given. Each question carries 14 Marks)

2. (a) Discuss the disqualifications of an Auditor of a public limited company.

(b) ‘There was persistent demand from the small shareholders to have a director
nominated by them to look after the interest of small shareholders.’ – discuss
procedure of appointment of such director. [7 + 7 =14]

3. (a) Describe the procedure of inspection of minute books of a general meeting.

(b) Merger and Amalgamation of Companies as per Section 232 of the Companies
Act,2013 – discuss. [7 + 7 =14]

4. (a) Fair Tech Ltd is a public limited company formed 15 days before, to manufacture
computer parts , having a small factory at Durgapur, West Bengal and registered
office at Kolkata. There 4 directors, two from promoter and balance 2 as
professionals, one being full time and the other as non-functional. One of the

3
Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – JUNE 2024
PAPER – 13 SYLLABUS 2022
CORPORATE AND ECONOMIC LAWS
promoter director is named as MD. Advise the company by interpreting the
provisions of Company law, and help the by clarifying the following.
(i) Is there any necessary to call a Board meeting?
(ii) If so, within what time?
(iii) Suggest at least two important agenda item for the meeting.
(iv) 3 directors want the meeting to be held in Delhi. Examine the legal provision.
(v) Is necessary to appoint a CFO?
(vi) Is written notice necessary?
(vii) If so, how many days’ notice?

(b) United Social Services Ltd is company formed by 10 professionals with one lakh
paid capital by each promoter. The company intends to give various services to
NGOs and social sector organisations with marginal profit. Though the registered
office is Delhi, the company wants to work pan India. Interpret the following
perception of the company, in line with provisions of law.
(i) The company claims that it’s a non-profit company.
(ii) If not, can it be converted as NPO?
(iii) What is to be done for conversation?
(iv) Once converted, would the promoters get dividend out of profit? [7+7=14]

5. (a) Discuss the provisions of Companies Act, 2013 on right of member to copies of
Audited Financial Statement.

(b) Gainwel Finance Ltd. (GFL) is registered as NBFC for last 10 years. The company
extended a loan of 10 crores to Hindustan Wires Ltd.(HWL) as normal course of
business. The loan was long term for equipment financing and equipment were
actually purchased. HWL repaid only one crore and stopped paying further
instalments. The company had to operation for various reasons. Examine the
situation in context of IBC code to get the following queries.
(i) Which type of creditor GFL shall be classified?
(ii) Where the application can be made?
(iii) Is IP necessary?
(iv) Can GFL make a petition on its own?
(v) What CIRP in this context?
(vi) What time is expected to resolve?
(vii) Can HWL itself apply for taking over the company? [7+7 =14]

4
Directorate of Studies, The Institute of Cost Accountants of India
 FINAL EXAMINATION SET - 1
MODEL QUESTION PAPER TERM – JUNE 2024
PAPER – 13 SYLLABUS 2022
CORPORATE AND ECONOMIC LAWS

6. (a) Describe what do you understand by three Ps. List the benefits of Sustainability
Management.

(b) Summarize the work process of business intelligence and list the benefits of
business intelligence. [7+7=14]

7. (a) Describe the restrictions on communication and trading by insiders.

(b) Discuss Anti-Competitive Agreement and it’s types. [7+7=14]

8. (a) Discuss the procedure of Investigation under the Prevention of Money Laundering
Act.

(b) Discuss the procedure for registration of an Asset Reconstruction Company.

[7+7=14]

5
Directorate of Studies, The Institute of Cost Accountants of India