LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question For which activity FDI is not

prohibited? Correct Answer Insurance Your Answer Insurance Multiple Choice Multiple Answer Question Remuneration to the director may be paid :Correct Answer Monthly , Quarterly , Annually Your Answer Quarterly , Annually , Monthly Multiple Choice Single Answer Question Payment of wages act came into existence :Correct Answer To ensure regular and timely payment of wages to employed persons Your Answer To ensure regular and timely payment of wages to employed persons Multiple Choice Single 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 Multiple Choice Multiple Answer Question Sole selling agent may be :Correct Answer An Individual , A firm , A Body corporate Your Answer An Individual , A firm , A Body corporate Multiple Choice Single Answer Question When was the factories act passed? Correct Answer In 1948 Your Answer In 1948 Multiple Choice Single Answer 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 True/False Question Bonus is an ex gratia payment. Correct Answer False Your Answer False Multiple Choice Single Answer Question Compliance Report is signed by :Correct Answer Company Secretary in practice Your Answer Company Secretary in practice Multiple Choice Single 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 International labour organisation 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 Multiple Choice Multiple Answer 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 He is found to be of unsound mind , He is declared as an insolvent , He has not taken qualification shares Multiple Choice Single 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 StandardsNational Advisory Committee National Advisory Committee Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer Question Director can be appointed without counting the number in :Correct Answer Private limited company , Unlimited company , Charitable association Your Answer Charitable association Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 Select The Blank Question Under the industrial disputes act 1947________is an appropriate government. Correct Answer Central government Your Answer Central government Multiple Choice Single Answer 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 Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Your Answer Arvind mills ltd case 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 Fidelity guarantee bond 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 Multiple Choice Multiple Answer 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 Power to make calls on shares , Power to issue debentures , Power to borrow money Multiple Choice Single Answer Question Explanatory Statement should be annexed to Notice for :Correct Answer Special business Your Answer Special business Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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

Legal Aspects of Finance - 3

Legal Aspects of Finance - 3 True/False Question Indian companies are exempted from filing a return by ECB-2. Correct Answer False Select The Blank Question The minimum wages act which determines the rate of wages in industries specified in the schedule attached to the act are called ________ Correct Answer Scheduled employment Match The Following Question Correct Answer 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 Cost auditor A cost accountant, who is suppose to conduct cost audit of the company. Multiple Choice Multiple Answer Question SIA/FIPB approval is necessary in :Correct Answer 13 specified activities , Sector limits sought exceeded , Small scale sector items Multiple Choice Single Answer Question ECB stands for :Correct Answer External Commercial Borrowings Multiple Choice Single Answer Question A person cannot be appointed as a director in more than :Correct Answer 20 companies Select The Blank Question Board has power to receive of notice of ________. Correct Answer Disclosure of interest Multiple Choice Multiple Answer Question For registering certain resolutions, following documents are submitted :Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory statement Multiple Choice Single Answer Question Maturity period for USD 5 million scheme is :Correct Answer Three years

Multiple Choice Multiple 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 Multiple Choice Multiple Answer Question The register in respect of every investment or loan made, contains Correct Answer The amount, terms & conditions & purpose of investment or loan or security or guarantee , The date on which the investment or loan has been made , The name of body corporate Select The Blank Question ________shall certify that they have reviewed the balance sheet and profit and loss account. Correct Answer CEO Select The Blank Question ________ is a scheduled employment carried out under the authority of central government. Correct Answer Competent authority Multiple Choice Single Answer 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 Match The Following Question Correct Answer Indian company borrowings Redemption more than 3 years Borrowing by NRE Loan less than 3 years

Borrowings in Rupees Regulated ROI NCD issue Public issue Multiple Choice Multiple Answer 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 True/False Question Payment to a scheme of insurance of a post office is not a deduction. Correct Answer False True/False Question Company may have nominee director. Correct Answer True Multiple Choice Multiple 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 Select The Blank Question All transactions of the ________ with the company shall be disclosed in the annual report. Correct Answer Non executive chairman Multiple Choice Single Answer Question Which companies have to comply with the provisions of Clause 49 of listing agreement ? Correct Answer Listed Companies

Select The Blank Question The Forms 8 &13 should be filed in ________ to ragistrar of companies. Correct Answer Triplicate

Multiple Choice Single Answer Question Single director can sign the annual accounts if :Correct Answer Only one director in India for the time being Multiple Choice Multiple Answer Question Form No. 1 can be signed by :Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate True/False Question Financial year and calendar year are one and the same thing. Correct Answer False Multiple Choice Single Answer Question If date of incorporation is 1.1.2005, first AGM must be held before :Correct Answer 30.6.2006

Multiple Choice Single Answer Question Proxy form generally should be :Correct Answer Duly stamped and signed by all the joint-holders 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 True/False Question No additional fees is payable on increased authorised capital since already paid on original authorised capital. Correct Answer False Multiple Choice Multiple Answer Question Following are the Forms to be submitted to ROC for incorporation of company :Correct Answer Form 32 , Form 29 , Form 1 Select The Blank Question ________ includes legal representative of deceased employer. Correct Answer Employer Multiple Choice Single Answer Question If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :Correct Answer Company Law Board

Multiple Choice Multiple Answer Question Conditions on borrowings by PIO are :Correct Answer Non-repatriation basis , Loan by inward remittance , Account by lender in India Select The Blank Question The auditor has to give his report that the accounts of the company gives ________. Correct Answer True & Fair view True/False

Question After completion of Ordinary business other business is transacted at Extra ordinary General Meeting. Correct Answer False Multiple Choice Single Answer Question Maturity period for foreign currency credit by overseas suppliers is :Correct Answer More than 6 months & less 3 years Select The Blank Question ________ of the company has a right to take inspection of the books of account. Correct Answer Any Director True/False Question Acquiring foreign security on gift is allowed. Correct Answer True Multiple Choice Multiple Answer Question Board's Report shall include :Correct Answer Dividend recommended , Financial position of the company , Amounts transferred to Reserves Multiple Choice Multiple Answer Question What are the general provisions for punishment of other offences? Correct Answer Section 22 provides for the provision , Punishable with fine , Rs 500 fine Select The Blank Question RBI in consultation with ________ regulates the capital transactions. Correct Answer Central govt. Multiple Choice Multiple Answer

Question Board may by resolution passed at the meeting delegate the powers to :Correct Answer Committee of directors , Managing director , Manager True/False Question Wages does not include any gratuity payable on discharge. Correct Answer True Multiple Choice Single Answer Question In each board meeting director is paid by remuneration, which is known as :Correct Answer Sitting fees

True/False Question An independent director is an executive of a company in the immediately preceding 3 financial years of the company. Correct Answer False Multiple Choice Single Answer Question After incorporation of the company, the first auditor is generally appointed within :Correct Answer One Month True/False Question Deductions for income tax, payable by the employed person is permissible. Correct Answer True Legal Aspects of Finance - 2 Multiple Choice Single Answer Question Payment of wages act came into existence :Correct Answer To ensure regular and timely payment of wages to employed persons

Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Select The Blank Question Any payment in respect on ________ can be deducted from the wages of an employed person. Correct Answer Fidelity guarantee bond True/False Question Deductions for income tax, payable by the employed person is permissible. Correct Answer True Multiple Choice Single Answer Question The responsibility of placing the annual accounts before the AGM is on Correct Answer Board of Directors

Multiple Choice Single Answer Question Accounting Standards are issued by :Correct Answer Institute of Chartered Accountants Multiple Choice Single Answer Question Single director can sign the annual accounts if :Correct Answer Only one director in India for the time being Multiple Choice Multiple Answer Question The annual accounts of the company are signed on behalf of the Board by :Correct Answer Managing director , Two Directors , Company Secretary

Multiple Choice Multiple 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 Multiple Choice Multiple Answer Question Following have the right to inspect books of account :Correct Answer Any Director of the company , Officer of SEBI (if authorised) , Authorised officer of Government

Multiple Choice Multiple Answer Question Directors' Responsibility Statement refers to :Correct Answer Going concern , Accounting policies , Accounting standards Select The Blank Question It is advisable to close the financial year on ________. Correct Answer 31st March Select The Blank Question ________ of the company has a right to take inspection of the books of account. Correct Answer Any Director Select The Blank Question Copies of annual accounts are to be filed within ________ days from AGM with ROC. Correct Answer 30 days 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 True/False Question Statutory Meeting must be held on a working day. Correct Answer False

Multiple Choice Single Answer Question Any contract or arrangement in which director is interested has to be recorded in :Correct Answer Register of contracts

Multiple Choice Single Answer Question The notice of the meeting be sent to all the directors at their :Correct Answer Usual residential address Multiple Choice Single Answer Question A person can not be appointed as managing or whole time director in more than :Correct Answer Two companies

Multiple Choice Multiple Answer Question Director can be appointed without counting the number in :Correct Answer Private limited company , Unlimited company , Charitable association Select The Blank Question Director can cease to be a director, if he is absent himself from ________ consecutive meetings. Correct Answer Three 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 True/False Question Only individuals can be appointed as directors of the company. Correct Answer True Multiple Choice Single 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 Multiple Choice Multiple Answer Question In calculating the limit of all the companies which companies are excluded? Correct Answer Foreign companies , Private Companies , Non Profit making companies Multiple Choice Multiple Answer Question Which committees are considered for calculating the limit of the companies Correct Answer Audit committees , Remuneration Committee , Shareholders Grievance Committee Multiple Choice Multiple Answer 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 Select The Blank Question The management should clearly disclose ________ in auditors report Correct Answer

Contingent liabilities Select The Blank Question When a money is raised through ________ it shall disclose to the audit committee. Correct Answer Initial public offering True/False Question Meeting of the board of Directors shall be held at least 4 times in a year. Correct Answer True True/False Question Every company shall have a qualified and independent audit committee. Correct Answer True True/False Question Debenture holders are creditors of the company. Correct Answer True Multiple Choice Multiple Answer 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 Select The Blank Question ________means all remuneration expressed in terms of money. Correct Answer Wages Select The Blank Question The minimum wages act came in force in the year________. Correct Answer 1948 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 Multiple Choice Single Answer Question Cap on investment by person resident outside India, for Housing & Real Estate Sector is :Correct Answer 1 True/False Question Sectoral cap on investment by person resident outside India on Mass rapid Transport is 50%. Correct Answer False

Multiple Choice Single Answer Question Long - term borrowings schemes have which maturity period? Correct Answer Eight years Multiple Choice Multiple Answer Question Conditions on borrowings by PIO are :Correct Answer Non-repatriation basis , Loan by inward remittance , Account by lender in India Non-repatriation basis , Loan by inward remittance , Account by lender in India True/False Question Owned foreign exchange is not permitted. Correct Answer False Match The Following Question Correct Answer WOS

Royalty payment Technical collaboration Foreign companies Automatic route RBI Royalty continuation Share holding Multiple Choice Single Answer Question In which of the companies the bonus act is applicable? Correct Answer More than 20 persons employed Match The Following Question Correct Answer salary does not include travelling concession public sector establishment establishment owned by government interim and final determination of an industrial dispute award sallocable surplus 67% surplus in the accounting year True/False Question Company can not issue shares with differential voting/ dividend rights. Correct Answer False

Multiple Choice Single Answer Question If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :Correct Answer

Company Law Board Multiple Choice Multiple Answer Question Company can take loan from :Correct Answer Banks , Financial Institutions , Debenture Holders Your Answer Legal Aspects of Finance - 1 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 Ministers 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 caseprovided 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 Cooperative 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 Ministers 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 workmens 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 employers 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 workmans 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 yearsi) 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 employees provident fund and miscellaneous provision act? Ans MODE OF RECOVERY OF MONEYS 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 employers 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 employers contribution amount of the employers 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 employees 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 twentyone 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 individuals 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 companys 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 companys 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 companys 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 companys 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 companys 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 companys 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 its 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.
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Director can be appointed without counting the number in :Correct Answer Private limited company , Unlimited company , Charitable association Your Answer Unlimited company , Charitable association Multiple Choice Multiple Answer Question Who is entitled to bonus? Correct Answer Temporary workmen , Part time employee , Retrenched employee Your Answer Temporary workmen , Part time employee , Retrenched employee True/False Question Payment to a scheme of insurance of a post office is not a deduction. Correct Answer False Your Answer True True/False Question Deductions for income tax, payable by the employed person is permissible. 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. Multiple Choice Multiple Answer Question Company can take loan from :Correct Answer Banks , Financial Institutions , Debenture Holders Your Answer Banks , Financial Institutions , Debenture Holders Multiple Choice Single 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 The minimum wages act came in force in the year________. 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 ________ includes legal representative of deceased employer. Correct Answer Employer Your Answer Employer Multiple Choice Single Answer Question For which activity FDI is not prohibited? Correct Answer Insurance Your Answer Insurance Multiple Choice Multiple Answer 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 It is advisable to close the financial year on ________. Correct Answer 31st March Your Answer 31st March Multiple Choice Single Answer 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 Multiple Choice Multiple Answer Question Boards 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 Match The Following Question Correct Answer Your Answer Internal auditor Employee of the company Doing legal things Insolvent A person who is not in a position to pay his dues A person who is not in a position to pay his dues Moral turpitude Doing immoral things Doing immoral things Call on share Demand of remaining part of share capital value 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 Multiple Choice Single Answer 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 Wages includes the value of any house accommodation or supply of light and 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 Multiple Choice Multiple Answer Question Public limited companys directors have following conditions :Correct Answer Minimum number is three , Should be individuals , Have sound mind Your Answer Minimum number is three , Should be individuals , Have sound mind True/False Question Debenture holders are creditors of the company. Correct Answer True Your Answer True True/False Question Any gratuity payable on termination of employment is included in wages. Correct Answer False

Your Answer False Multiple Choice Single Answer Question What is the optimum combination of Board of Directors? Correct Answer Managing Directors and Secretary Your Answer Executive and non executive Directors Multiple Choice Single Answer 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 Shorter notice for AGM Private Limited Company ROC Books of Account Form 23AA Registered Office Accounting Standards National Advisory Committee 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 Multiple Choice Single Answer 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. Multiple Choice Multiple Answer Question What is the role of the audit committee? Correct Answer Review the annual financial statements , Recommending and appointment of external auditors , Reviewing the companys financial and risk management policies Your Answer

Review the annual financial statements , Recommending and appointment of external auditors , Reviewing the companys financial and risk management policies Multiple Choice Single Answer 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 Landmark in the history of labour legislation in the country 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 Financial year and calendar year are one and the same thing. Correct Answer False Your Answer False Multiple Choice Single Answer Question For public company, quorum for general meeting is :Correct Answer 5 members in person Your Answer 5 members in person True/False Question Only individuals can be appointed as directors of the company. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question FDI prohibited activities are :Correct Answer Retail trading , Gambling & betting , Housing & real estate Your Answer Retail trading , Gambling & betting , Housing & real estate 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 No person can be appointed as an auditor of the company who is in full time

employment. Correct Answer True Your Answer True True/False Question Authorized dealer is required to avail license under the exim policy in force. 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 Multiple Choice Single Answer Question As per section 3 who fixes the minimum rate of wages to be paid to the employees ? Correct Answer Appropriate government Your Answer Appropriate government Multiple Choice Multiple Answer Question Remittance completely prohibited on :Correct Answer Dividend balancing , Telephone expanses , Interest on funds Your Answer Dividend balancing , Telephone expanses , Interest on funds True/False Question Default in placing annual accounts before AGM may result in imprisonment. Correct Answer True Your Answer True Multiple Choice Single Answer Question A director of a company can be removed by :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 Wages includes any travelling allowance for travel concession. Correct Answer False Your Answer False Legal Aspects of Finance LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer 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 Authorized dealer may freely open ________ and allow remittance for import of goods. Correct Answer Letter of credit Your Answer Letter of credit Multiple Choice Single Answer Question Which person is responsible for he payment of wages act ? Correct Answer Managers Your Answer Managers Multiple Choice Single Answer Question As per the provisions of Companies Act 1956, company can issue shares with :Correct Answer Differential voting rights Your Answer Differential voting rights Multiple Choice Single Answer 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 Multiple Choice Multiple 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 Amount by way of depreciation , Employment rebate or investment allowance , Direct tax Multiple Choice Multiple Answer 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 Multiple Choice Multiple 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 Tramway service or motor transport service engaged carrying passengers of hire or reward , Dock wharf jetty , Plantation True/False Question A piece rated worker is entitled to bonus. Correct Answer True Your Answer True Multiple Choice Single Answer Question s Correct Answer In 1936 Your Answer In 1936 Multiple Choice Single Answer Question No preference shares can be redeemed unless they are :Correct Answer Fully paid up Your Answer Fully paid up Multiple Choice Single Answer Question What do you mean by establishment on private sector? Correct Answer Any establishment other than public sector Your Answer Any establishment other than public sector Multiple Choice Multiple Answer Question

Person permanently resident in India can return foreign exchange by :Correct Answer From AD , Travelling abroad , As a gift Your Answer From AD , Travelling abroad , As a gift True/False Question Wages include any contribution paid by the employer to any pension fund or provided fund. Correct Answer False Your Answer False Multiple Choice Single Answer Question ECB stands for :Correct Answer External Commercial Borrowings Your Answer External Commercial Borrowings Multiple Choice Single Answer Question Deductions are authorized under which section? 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 Multiple Choice Single Answer 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 Multiple Choice Multiple 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 Remuneration under any award , Overtime , Travelling allowance Multiple Choice Multiple Answer 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 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 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 Multiple Choice Single Answer 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 Section 3 of wages act Every employer responsible for payment to employed persons Every employer responsible for payment to employed persons 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 Articles of Association are rules for ________. Correct Answer Internal management Your Answer Internal management 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 For which any application claim has already been presented , Direction of claim already given , Amount adjudged is not due to penalty Your Answer For which any application claim has already been presented , Direction of claim already given , Amount adjudged is not due to penalty Multiple Choice Single 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 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 The recommendations of audit committee relating to financial management shall be ________. Correct Answer Binding Your Answer Binding Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Your Answer Arvind mills ltd case Select The Blank Question First AGM should be held within ________ from closure of financial year. Correct Answer 9 months Your Answer 18 months Multiple Choice Single Answer Question Quorum required to hold a valid meeting can be prescribed in :Correct Answer Articles of Association Your Answer Articles of Association Select The Blank Question Private Company prohibits public to ________ for any shares. Correct Answer Subscribe Your Answer Subscribe Multiple Choice Single Answer Question Payment of wages act came into existence :Correct Answer To ensure regular and timely payment of wages to employed persons

Your Answer To ensure regular and timely payment of wages to employed persons Match The Following Question Correct Answer Your Answer Interim Dividend Board of Directors Board of Directors Reduction of capital Special Resolution Special Resolution Appointment of Managing Director Ordinary Resolution ROC Accounting Standards National Advisory Committee National Advisory Committee Select The Blank Question For making alterations before ROC, ________ is required. Correct Answer Power of Attorney Your Answer Resolution authorising alteration Multiple Choice Multiple Answer 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 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 Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question When was the factories act passed? 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 AnswerFalse Legal aspects of finance Multiple Choice Single Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer

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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 :Correct Answer 90 days 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 Multiple Choice Single 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 Select The Blank Question ________ includes legal representative of deceased employer. Correct Answer Employer Your Answer Doctor Match The Following Question Correct Answer Your Answer 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 Question Only individuals can be appointed as directors of the company. Correct Answer True Your Answer False Multiple Choice Single Answer Question FEMA Norms are compatible with :Correct Answer FERA Your Answer FERA Multiple Choice Multiple Answer Question WOS are allowed to :Correct Answer Pay royalty , Offshore payment , By automatic route Your Answer Pay royalty , Offshore payment , By automatic route Multiple Choice Multiple Answer

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. Correct Answer False Your Answer False Multiple Choice Single Answer 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 including overtime 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 90 Days Multiple Choice Multiple 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 Shares of the company bought & sold by the members , Money received & expended , Sales & purchases of goods Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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. Correct Answer False Your Answer False Multiple Choice Single Answer Question A director of a company can be removed by :Correct Answer Ordinary resolution Your Answer Special resolution Multiple Choice Single Answer 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. Correct Answer False

Your Answer True Multiple Choice Single Answer Question A director has to vacate his office, if he is adjudged as :Correct Answer Insolvent Your Answer Solvent Match The Following Question Correct Answer Your Answer 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. Correct Answer 30 days Your Answer 15 days Multiple Choice Multiple Answer Question Debentures can be :Correct Answer Redeemable , Convertible , Party convertible and redeemable Your Answer Redeemable , Convertible , Party convertible and redeemable Multiple Choice Single Answer 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. Correct Answer 30 daysYour Answer 21 days

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question For which activity FDI is not prohibited? Correct Answer Insurance Your Answer Insurance Multiple Choice Multiple Answer Question Remuneration to the director may be paid :Correct Answer Monthly , Quarterly , Annually Your Answer Quarterly , Annually , Monthly Multiple Choice Single Answer Question Payment of wages act came into existence :Correct Answer To ensure regular and timely payment of wages to employed persons Your Answer To ensure regular and timely payment of wages to employed persons Multiple Choice Single 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 Multiple Choice Multiple Answer Question Sole selling agent may be :Correct Answer An Individual , A firm , A Body corporate Your Answer An Individual , A firm , A Body corporate Multiple Choice Single Answer Question When was the factories act passed? Correct Answer In 1948 Your Answer In 1948 Multiple Choice Single Answer 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 True/False Question Bonus is an ex gratia payment. Correct Answer False Your Answer False Multiple Choice Single Answer Question Compliance Report is signed by :Correct Answer Company Secretary in practice Your Answer Company Secretary in practice Multiple Choice Single 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 International labour organisation 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 Multiple Choice Multiple Answer 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 He is found to be of unsound mind , He is declared as an insolvent , He has not taken qualification shares Multiple Choice Single 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 StandardsNational Advisory Committee National Advisory Committee Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer Question Director can be appointed without counting the number in :Correct Answer Private limited company , Unlimited company , Charitable association Your Answer Charitable association Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 Select The Blank Question Under the industrial disputes act 1947________is an appropriate government. Correct Answer Central government Your Answer Central government Multiple Choice Single Answer 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 Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Your Answer Arvind mills ltd case 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 Fidelity guarantee bond 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 Multiple Choice Multiple Answer 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 Power to make calls on shares , Power to issue debentures , Power to borrow money Multiple Choice Single Answer Question Explanatory Statement should be annexed to Notice for :Correct Answer Special business Your Answer Special business Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 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 Ministers 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 caseprovided 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 Ministers 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 workmens 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 employers 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 workmans 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 yearsi) 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 employees provident fund and miscellaneous provision act? Ans MODE OF RECOVERY OF MONEYS 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 employers 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 employers contribution amount of the employers 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 employees 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 individuals 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 companys 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 companys 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 companys 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 companys 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 companys 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 companys 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 its 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. Multiple Choice Single Answer Question Payment of wages act came into existence :Correct Answer To ensure regular and timely payment of wages to employed persons Your Answer To ensure regular and timely payment of wages to employed persons Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Your Answer Arvind mills ltd case 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 Railways ticket

True/False Question Deductions for income tax, payable by the employed person is permissible. Correct Answer True Your Answer True Multiple Choice Single Answer Question The responsibility of placing the annual accounts before the AGM is on Correct Answer Board of Directors Your Answer Board of Directors Multiple Choice Single Answer Question Accounting Standards are issued by :Correct Answer Institute of Chartered Accountants Your Answer Institute of Chartered Accountants Multiple Choice Single Answer 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 Multiple Choice Multiple Answer Question The annual accounts of the company are signed on behalf of the Board by :Correct Answer Managing director , Two Directors , Company Secretary

Your Answer Managing director , Two Directors , Company Secretary Multiple Choice Multiple 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 Multiple Choice Multiple Answer Question Following have the right to inspect books of account :Correct Answer Any Director of the company , Officer of SEBI (if authorised) , Authorised officer of Government Your Answer Officer of SEBI (if authorised) , Authorised officer of Government Multiple Choice Multiple Answer 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 It is advisable to close the financial year on ________. Correct Answer 31st March Your Answer 31st March 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 Copies of annual accounts are to be filed within ________ days from AGM with ROC. Correct Answer 30 days Your Answer 30 days 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 Chairman True/False Question Statutory Meeting must be held on a working day. Correct Answer False Your Answer True Multiple Choice Single Answer Question Any contract or arrangement in which director is interested has to be recorded in :Correct Answer Register of contracts

Your Answer Register of contracts Multiple Choice Single Answer Question The notice of the meeting be sent to all the directors at their :Correct Answer Usual residential address Your Answer Usual postal address Multiple Choice Single Answer Question A person can not be appointed as managing or whole time director in more than :Correct Answer Two companies Your Answer Five companies Multiple Choice Multiple Answer Question Director can be appointed without counting the number in :Correct Answer Private limited company , Unlimited company , Charitable association Your Answer Unlimited company , Charitable association , Government company Select The Blank Question Director can cease to be a director, if he is absent himself from ________ consecutive meetings. Correct Answer Three Your Answer Three 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 Only individuals can be appointed as directors of the company. Correct Answer True Your Answer True Multiple Choice Single 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 2 years Multiple Choice Multiple Answer 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 , Private Companies , Non Profit making companies Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 The management should clearly disclose ________ in auditors report Correct Answer Contingent liabilities Your Answer Contingent liabilities Select The Blank Question When a money is raised through ________ it shall disclose to the audit committee. Correct Answer Initial public offering Your Answer Inter corporate deposits 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

True/False Question Every company shall have a qualified and independent audit committee. Correct Answer True Your Answer False True/False Question Debenture holders are creditors of the company. Correct Answer True Your Answer True Multiple Choice Multiple Answer 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 Select The Blank Question ________means all remuneration expressed in terms of money. Correct Answer Wages Your Answer Wages Select The Blank Question The minimum wages act came in force in the year________. Correct Answer 1948

Your Answer 1948 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 Multiple Choice Single Answer Question Cap on investment by person resident outside India, for Housing & Real Estate Sector is :Correct Answer 1 Your Answer 1 True/False Question Sectoral cap on investment by person resident outside India on Mass rapid Transport is 50%. Correct Answer False Your Answer False Multiple Choice Single Answer Question Long term borrowings schemes have which maturity period? Correct Answer Eight years Your Answer Eight years

Multiple Choice Multiple Answer 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 True/False Question Owned foreign exchange is not permitted. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer WOS Royalty payment Royalty payment Technical collaboration Foreign companies Foreign companies Automatic route RBI RBI Royalty continuation Share holding Share holding Multiple Choice Single Answer 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 Match The Following Question Correct Answer Your Answer salary does not include travelling concession does not include travelling concession public sector establishment establishment owned by government establishment owned by government interim and final determination of an industrial dispute award award allocable surplus 67% surplus in the accounting year 67% surplus in the accounting year True/False Question Company can not issue shares with differential voting/ dividend rights. Correct Answer False Your Answer False Multiple Choice Single Answer Question If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :Correct Answer Company Law Board Your Answer Company Law Board

Multiple Choice Multiple Answer Question Company can take loan from :Correct Answer Banks , Financial Institutions , Debenture Holders Your Answer Banks , Financial Institutions , Debenture Holders LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Indian companies are exempted from filing a return by ECB-2. Correct Answer False Your Answer False Select The Blank Question The minimum wages act which determines the rate of wages in industries specified in the schedule attached to the act are called ________ Correct Answer Scheduled employment Your Answer Promotions Match The Following Question Correct Answer Your Answer 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 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. Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question ECB stands for :Correct Answer External Commercial Borrowings Your Answer External Commercial Borrowings Multiple Choice Single Answer Question A person cannot be appointed as a director in more than :Correct Answer 20 companies Your Answer 20 companies Select The Blank Question Board has power to receive of notice of ________. Correct Answer Disclosure of interest

Your Answer Disclosure of interest Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Maturity period for USD 5 million scheme is :Correct Answer Three years Your Answer Three years Multiple Choice Multiple 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 Multiple Choice Multiple Answer Question The register in respect of every investment or loan made, contains Correct Answer The amount, terms & conditions & purpose of investment or loan or security or guarantee , The date on which the investment or loan has been made , The name of body corporate 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

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 ________ is a scheduled employment carried out under the authority of central government. Correct Answer Competent authority Your Answer Competent authority Multiple Choice Single Answer 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 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 AICTE Act Borrowings in Rupees Regulated ROI

Regulated ROI NCD issue Public issue Public issue Multiple Choice Multiple Answer Question Board of directors have to take consent of general meeting for :Correct Answer Sale, lease or dispose of companys 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 companys property , Give time to repayment of debt due by director , Contribute to charitable funds exceeding Rs 50000/- or 5% of average net profits True/False Question Payment to a scheme of insurance of a post office is not a deduction. Correct Answer False Your Answer False True/False Question Company may have nominee director. Correct Answer True Your Answer True Multiple Choice Multiple 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 Amount by way of depreciation , Employment rebate or investment allowance , Direct tax Select The Blank Question All transactions of the ________ with the company shall be disclosed in the annual report. Correct Answer Non executive chairman Your Answer Non executive chairman Multiple Choice Single Answer Question Which companies have to comply with the provisions of Clause 49 of listing agreement ? Correct Answer Listed Companies Your Answer Listed Companies Select The Blank Question The Forms 8 &13 should be filed in ________ to ragistrar of companies. Correct Answer Triplicate Your Answer Triplicate Multiple Choice Single Answer 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 Multiple Choice Multiple Answer Question

Form No. 1 can be signed by :Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate Your Answer Chartered Accountant , Cost & Works Accountant , Advocate True/False Question Financial year and calendar year are one and the same thing. Correct Answer False Your Answer False Multiple Choice Single Answer 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 Multiple Choice Single Answer Question Proxy form generally should be :Correct Answer Duly stamped and signed by all the joint-holders Your Answer Duly stamped and signed by all the joint-holders 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 Chairman 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 Multiple Choice Multiple Answer 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 Select The Blank Question ________ includes legal representative of deceased employer. Correct Answer Employer Your Answer Employer Multiple Choice Single Answer Question If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :Correct Answer Company Law Board Your Answer Company Law Board

Multiple Choice Multiple Answer 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 Select The Blank Question The auditor has to give his report that the accounts of the company gives ________. Correct Answer True & Fair view Your Answer True & Fair view True/False Question After completion of Ordinary business other business is transacted at Extra ordinary General Meeting. Correct Answer False Your Answer False Multiple Choice Single Answer Question Maturity period for foreign currency credit by overseas suppliers is :Correct Answer More than 6 months & less 3 years Your Answer More than 6 months & less 3 years 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 Acquiring foreign security on gift is allowed. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Boards Report shall include :Correct Answer Dividend recommended , Financial position of the company , Amounts transferred to Reserves Your Answer Dividend recommended , Financial position of the company , Amounts transferred to Reserves Multiple Choice Multiple Answer Question What are the general provisions for punishment of other offences? Correct Answer Section 22 provides for the provision , Punishable with fine , Rs 500 fine Your Answer Section 22 provides for the provision , Punishable with fine , Rs 500 fine Select The Blank Question RBI in consultation with ________ regulates the capital transactions. Correct Answer Central govt. Your Answer Central govt. Multiple Choice Multiple Answer 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 True/False Question Wages does not include any gratuity payable on discharge. Correct Answer True Your Answer True Multiple Choice Single Answer Question In each board meeting director is paid by remuneration, which is known as :Correct Answer Sitting fees Your Answer Sitting fees True/False Question An independent director is an executive of a company in the immediately preceding 3 financial years of the company. Correct Answer False Your Answer False Multiple Choice Single Answer Question After incorporation of the company, the first auditor is generally appointed within :Correct Answer One Month

Your Answer One Month True/False Question Deductions for income tax, payable by the employed person is permissible. Correct Answer True Your Answer True LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Multiple Choice Single Answer Question The requisite registration fees is payable to ROC depending upon Correct Answer Authorised Capital of the Company Your Answer Paid-up capital of the Company Multiple Choice Multiple Answer Question Directors Responsibility Statement refers to :Correct Answer Going concern , Accounting policies , Accounting standards Your Answer Going concern , Accounting policies , Accounting standards

Multiple Choice Multiple Answer Question Public Company means a company which :Correct Answer Has a minimum paid-up share-capital of Rs. 5 lac , Is private company which is subsidiary of public company , Is not a private company Your Answer Has a minimum paid-up share-capital of Rs. 5 lac , Is private company which is subsidiary of public company , Is not a private company Multiple Choice Single Answer Question Unless the articles of association otherwise provide, every director has to hold the shares of nominal value of Rs.:Correct Answer 5000/Your Answer 5000/Select The Blank Question The detention period where the amount of penalty is greater than 10 million is ________. Correct Answer 3 years Your Answer 3 years 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

Multiple Choice Single Answer Question Audit committee shall consist of not less than :Correct Answer Three directors Your Answer Three directors Select The Blank Question If the articles are silent who will be the ________ director of the company, the subscribers to the members shall deemed to be directors of the company. Correct Answer First Your Answer First True/False Question Debenture-holder of a company can ask for annual accounts. Correct Answer True Your Answer True Multiple Choice Single Answer 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 True/False Question Company can not issue shares with differential voting/ dividend rights. Correct Answer

False Your Answer False Multiple Choice Multiple Answer Question Person permanently resident in India can return foreign exchange by :Correct Answer From AD , Travelling abroad , As a gift Your Answer From AD , Travelling abroad , As a gift Multiple Choice Single Answer Question Any contravention of provisions of FEMA will attract penalty upto :Correct Answer Rs. 200000 Your Answer Rs. 200000 True/False Question Directors Report may contain details/ state of affairs of its subsidiaries. Correct Answer True Your Answer True Multiple Choice Single Answer Question What does the minimum wages act determine ? Correct Answer The minimum wages in industries specified in the schedule Your Answer The minimum wages in industries specified in the schedule

Multiple Choice Multiple Answer 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 He is found to be of unsound mind , He is declared as an insolvent , He has not taken qualification shares True/False Question Companies listed on recognized stock exchange are not allowed to invest in foreign companies. Correct Answer False Your Answer False True/False Question Board may appoint additional directors. Correct Answer True 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 True/False Question An employee employed through contractors on building operations is entitled to bonus. Correct Answer False

Your Answer False Select The Blank Question The shares with differential voting rights shall not exceed ________ of the total share capital issued. Correct Answer 0.25 Your Answer 0.25 Multiple Choice Multiple Answer Question Statutory Report pertains to :Correct Answer Funds raised by the company , Utilisation of funds , Investments made by the company Your Answer Funds raised by the company , Utilisation of funds , Investments made by the company 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 The chairman of the audit committee shall attend ________ to provide clarification on matters relating to audit. Correct Answer Annual general meeting Your Answer Annual general meeting

Multiple Choice Single Answer Question Explanatory Statement should be annexed to Notice for :Correct Answer Special business Your Answer Special business Multiple Choice Multiple Answer Question Sole selling agent may be :Correct Answer An Individual , A firm , A Body corporate Your Answer An Individual , A firm , A Body corporate True/False Question The Board has power to alter Articles of Association being internal document. Correct Answer False Your Answer False Multiple Choice Single Answer Question Declaration of Compliance with requirements of the Companies Act Correct Answer Form 1 Your Answer Form 29 Multiple Choice Single Answer 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 Journals Select The Blank Question The minimum wages to the obligations created by the convention no 26 of ________. Correct Answer International labour organisation Your Answer International labour organisation Multiple Choice Multiple Answer 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 Power to make calls on shares , Power to issue debentures , Power to borrow money 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 False Multiple Choice Multiple Answer Question Particulars of charge under sec.125 contain :Correct Answer Date & description of the instrument creating the charge , Amount secured by the charge , Short particulars of the asset to be charged Your Answer Date & description of the instrument creating the charge , Amount secured by the charge , Short particulars of the asset to be charged

Match The Following Question Correct Answer Your Answer Remuneration policy Remuneration committee Remuneration committee Board of directors Board procedure Board procedure Audit committee Qualified and independent audit committee Qualified and independent audit committee Net worth more than 25 corers Comply with clause 49 Comply with clause 49 Multiple Choice Multiple Answer 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 True/False Question Company may have alternate director. Correct Answer True Your Answer False 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 For which any application claim has already been presented , Direction of claim already given , Amount adjudged is not due to penalty Your Answer For which any application claim has already been presented , Direction of claim already given , Amount adjudged is not due to penalty 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 Multiple Choice Single Answer Question The earlier Fast Track investments route has been replaced by? Correct Answer Automatic Your Answer Automatic Multiple Choice Single Answer Question What right does the payment of bonus act give ? Correct Answer Statutory right to share in profits Your Answer Statutory right to share in profits Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question What do you mean by establishment on private sector? Correct Answer Any establishment other than public sector Your Answer Any establishment other than public sector 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 Multiple Choice Multiple Answer 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 Every company shall have a qualified and independent audit committee. Correct Answer True Your Answer True

Match The Following Question Correct Answer Your Answer Registration fees Authorised Capital of the Company Form 18 Certified resolution Form 23 Form 23 Activities of company Memorandum of Association Articles of Association Situation of registered office Form 18 Memorandum of Association LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question 1 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 2 Government can authorise for supply of essential commodities at concessional rates and pay wages in kind. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question 3 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 Multiple Choice Multiple Answer Question 4 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 True/False Question 5 Bonus is an ex gratia payment. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question 6 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 Tramway service or motor transport service engaged carrying passengers of hire or reward , Dock wharf jetty , Plantation Multiple Choice Single Answer Question 7 Whenever the Loan taken from bank or financial institution is repaid in full, the company has to file Form no 17 &13 within :Correct Answer 30 Days Your Answer 45 Dyas Multiple Choice Multiple Answer Question 8 Ordinary business includes :Correct Answer Declaration of dividend , Appointment of directors , Appointment of auditor Your Answer Declaration of bonus , Declaration of dividend , Appointment of directors True/False Question 9 Retiring director may be eligible for reappointment. Correct Answer True Your Answer False Select The Blank Question 10 The act defines ________ in private sector and public sector. Correct Answer Establishment Your Answer Establishment Match The Following Question 11 Correct Answer Your Answer

Interim Dividend Board of Directors Board of Directors Reduction of capital Special Resolution Special Resolution Appointment of Managing Director Ordinary Resolution Ordinary Resolution Accounting Standards National Advisory Committee National Advisory Committee True/False Question 12 Financial year and calendar year are one and the same thing. Correct Answer False Your Answer False True/False Question 13 Wages includes any remuneration payable under any award or settlement between the parties or order of court. Correct Answer True Your Answer True Select The Blank Question 14 For making alterations before ROC, ________ is required. Correct Answer Power of Attorney Your Answer Resolution authorising alteration Multiple Choice Multiple Answer Question 15 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 charged to revenue account Multiple Choice Single Answer Question 16 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 Multiple Choice Single Answer

Question 17 The director shall not be a member of more than how many committees across all the companies in which he is a director? Correct Answer 10 Your Answer 3 Multiple Choice Single Answer Question 18 The maximum number of Directors that every company shall have is :Correct Answer Twelve Your Answer Eleven Select The Blank Question 19 The uses and applications of the funds raised shall be disclosed to the audit committee on a ________basis. Correct Answer Quarterly Your Answer Quarterly Multiple Choice Multiple Answer Question 20 Remuneration to the director may be paid :Correct Answer Monthly , Quarterly , Annually Your Answer Monthly , Quarterly , Annually True/False Question 21 Wages does not include an amenity or service or special order of the appropriate government. Correct Answer True Your Answer True Select The Blank Question 22 Free selling/drawl of foreign exchange to authorized dealer(AD) for ________. Correct Answer Current account Your Answer Current account Select The Blank Question 23 WOS can make payment of royalty by ________ route. Correct Answer Automatic route Your Answer Automatic route Multiple Choice Single Answer Question 24 Which person is responsible for he payment of wages act ? Correct Answer Managers Your Answer Administrators Multiple Choice Multiple Answer

Question 25 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 He is found to be of unsound mind , He is declared as an insolvent , He has not taken qualification shares Multiple Choice Single Answer Question 26 In case a company has a non executive chairman, than how much proportion of the board should comprise of a independent directors? Correct Answer 1/3rd Your Answer 1/3rd Select The Blank Question 27 An auditor appointed in a ________ vacancy shall hold office until the conclusion of next annual general meeting. Correct Answer Casual Your Answer Emergency Multiple Choice Multiple Answer Question 28 FDI prohibited activities are :Correct Answer Retail trading , Gambling & betting , Housing & real estate Your Answer Retail trading , Gambling & betting , Housing & real estate Select The Blank Question 29 The management should clearly disclose ________ in auditors report Correct Answer Contingent liabilities Your Answer Contingent liabilities True/False Question 30 Payment to a scheme of insurance of a post office is not a deduction. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question 31 WOS are allowed to :Correct Answer Pay royalty , Offshore payment , By automatic route Your Answer Pay royalty , By automatic route Multiple Choice Single Answer Question 32 What amount of paid up capital should the listed companies have to comply with the provisions of Clause 49 of listing agreement ? Correct Answer Rs 3 crores

Your Answer Rs 5 crores True/False Question 33 The minimum wages act came in force on 15 march 1968 Correct Answer False Your Answer False Match The Following Question 34 Correct Answer Your Answer Remuneration policy Remuneration committee Board procedure Board of directors Board procedure Annexure 1C Audit committee Qualified and independent audit committee Qualified and independent audit committee Net worth more than 25 corers Comply with clause 49 Comply with clause 49 Multiple Choice Multiple Answer Question 35 The provision related to register are not applicable to :Correct Answer Banking company or insurance company , A company whose principle business is acquisition of shares, stock, debentures or other securities , A private limited company unless it is a subsidiary of public company. Your Answer Banking company or insurance company , A company whose principle business is acquisition of shares, stock, debentures or other securities , A listed company Select The Blank Question 36 The form should be filled within ________ days from the date of execution of document. Correct Answer 30 days Your Answer 30 days Multiple Choice Single Answer Question 37 To whom does the payment of wages act apply to ? Correct Answer Persons employed in any factory Your Answer Persons employed in any factory True/False Question 38 A proxy can appoint another proxy. Correct Answer False Your Answer False

Multiple Choice Single Answer Question 39 What does the minimum wages act determine ? Correct Answer The minimum wages in industries specified in the schedule Your Answer The minimum wages in industries specified in the schedule Select The Blank Question 40 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 Multiple Choice Multiple Answer Question 41 Current Account transactions are permitted if payment is made out of :Correct Answer EEFC Account , RFC Account Your Answer Current Account , EEFC Account , RFC Account Multiple Choice Single Answer Question 42 A company which restricts the right to transfer its shares is :Correct Answer Private Ltd. Company Your Answer Public Ltd Company Select The Blank Question 43 ________ 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 True/False Question 44 Company may have nominee director. Correct Answer True Your Answer False Multiple Choice Single Answer Question 45 In the case of prevention of operation and mismanagement application is to be made to company law board by Correct Answer Member Your Answer Central government Multiple Choice Single Answer Question 46 A person can not be appointed as managing or whole time director in more

than :Correct Answer Two companies Your Answer Two companies Select The Blank Question 47 If the articles are silent who will be the ________ director of the company, the subscribers to the members shall deemed to be directors of the company. Correct Answer First Your Answer Full time LIST OF ATTEMPTED QUESTIONS AND ANSWERS Match The Following Question 1 Correct Answer Your Answer Royalty continuation Share holding Share holding WOS Royalty payment Owned exchange Technical collaboration Foreign companies Foreign companies Automatic route RBI RBI Select The Blank Question 2 ________shall certify that they have reviewed the balance sheet and profit and loss account. Correct Answer CEO Your Answer Treasurer Multiple Choice Multiple Answer Question 3 Different classes of shareholders meetings are :Correct Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary General Meeting Your Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary Statutory Meeting Multiple Choice Multiple Answer Question 4 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 True/False Question 5 Board may appoint additional directors. Correct Answer True Your Answer True Multiple Choice Single Answer Question 6 Proxy form generally should be :Correct Answer Duly stamped and signed by all the joint-holders Your Answer Duly stamped and signed by all the joint-holders Select The Blank Question 7 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 Multiple Choice Single Answer Question 8 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

True/False Question 9 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 Multiple Choice Single Answer Question 10 Proxy form should be deposited with the company :Correct Answer 48 hours before the meeting Your Answer 24 hours before the meeting Select The Blank Question 11 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 14 days Multiple Choice Multiple Answer Question 12 Who is entitled to bonus? Correct Answer Temporary workmen , Part time employee , Retrenched employee Your Answer Temporary workmen , Part time employee , Retrenched employee Multiple Choice Single Answer Question 13 Minimum number of Directors who should sign annual accounts :Correct Answer 2 Your Answer 2 Multiple Choice Multiple Answer Question 14 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 Select The Blank Question 15 First AGM should be held within ________ from closure of financial year. Correct Answer 9 months Your Answer 6 months Multiple Choice Multiple Answer Question 16 Form No. 1 can be signed by :Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate Your Answer Chartered Accountant , Management Accountant , Cost & Works Accountant Select The Blank Question 17 ________ 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 Multiple Choice Multiple Answer Question 18 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 19 Wages includes any travelling allowance for travel concession. Correct Answer False Your Answer True Multiple Choice Single Answer Question 20 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 Landmark in the history of labour legislation in the country Multiple Choice Single Answer Question 21 A director has to vacate his office, if he is adjudged as :Correct Answer Insolvent Your Answer Immoral True/False Question 22 Every company shall have a qualified and independent audit committee. Correct Answer True Your Answer True True/False Question 23 Director can be removed from his post. Correct Answer True Your Answer True True/False Question 24 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 Multiple Choice Single Answer Question 25 Who issues a certificate of compliance of conditions of corporate governance? Correct Answer Auditors or company secretaries Your Answer Registrar of companies Multiple Choice Single Answer Question 26 As per section 3 who fixes the minimum rate of wages to be paid to the employees ? Correct Answer Appropriate government Your Answer Management Select The Blank Question 27 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 Select The Blank Question 28 Board has power to receive of notice of ________. Correct Answer Disclosure of interest Your Answer Disclosure of interest Multiple Choice Multiple Answer Question 29 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 For which any application claim has already been presented ,

Direction of claim already given , Amount adjudged is not due to penalty Select The Blank Question 30 The minimum wages act came in force in the year________. Correct Answer 1948 Your Answer 1948 Multiple Choice Multiple Answer Question 31 Public limited companys directors have following conditions :Correct Answer Minimum number is three , Should be individuals , Have sound mind Your Answer Minimum number is three , Should be individuals , Have sound mind Multiple Choice Single Answer Question 32 What types of rates can be fixed for different zones and localities? Correct Answer Different Your Answer Different Match The Following Question 33 Correct Answer Your Answer 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 Multiple Choice Single Answer Question 34 The Document spelling out internal management of the Company is :Correct Answer Articles of Association Your Answer Articles of Association Select The Blank Question 35 The minimum wages to the obligations created by the convention no 26 of ________. Correct Answer International labour organisation Your Answer International labour organisation Select The Blank Question 36 ________ is annexed to the Directors Report. Correct Answer Compliance Report Your Answer Chairmans Statement/ Speech Multiple Choice Single Answer Question 37 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 True/False Question 38 Directors Report may contain details/ state of affairs of its subsidiaries. Correct Answer True Your Answer True Select The Blank Question 39 The auditor has to give his report that the accounts of the company gives ________. Correct Answer True & Fair view Your Answer True & Fair view Multiple Choice Multiple Answer Question 40 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 Multiple Choice Multiple Answer Question 41 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 Multiple Choice Multiple Answer Question 42 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 Multiple Choice Multiple Answer Question 43 Sole selling agent may be :Correct Answer An Individual , A firm , A Body corporate Your Answer An Individual , A firm , A Body corporate Multiple Choice Single Answer Question 44 Cap on investment by person resident outside India, for Housing & Real Estate Sector is :Correct Answer 1 Your Answer 1 True/False Question 45 A temporary workman is not entitled to bonus though he works for a few days in the organisation. Correct Answer False Your Answer True True/False Question 46 Debenture-holder of a company can ask for annual accounts. Correct Answer True Your Answer False True/False Question 47 Wages includes the value of any house accommodation or supply of light and water.

Correct Answer False Your Answer True LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Books of account with respect to following are required to be kept :Correct Answer Sales & purchases of goods , Assets & liabilities , Money received & expended Select The Blank Question Authorized dealer may freely open ________ and allow remittance for import of goods. Correct Answer Letter of credit Multiple Choice Single Answer Question A director has to vacate his office, if he is adjudged as :Correct Answer Insolvent Select The Blank Question First AGM should be held within ________ from closure of financial year. Correct Answer 9 months Multiple Choice Single Answer Question The earlier Fast Track investments route has been replaced by? Correct Answer Automatic Multiple Choice Single Answer Question Payment of wages act came into existence :Correct Answer To ensure regular and timely payment of wages to employed persons Select The Blank Question Any payment in respect on ________ can be deducted from the wages of an employed person. Correct Answer Fidelity guarantee bond True/False Question Directors Report may contain details/ state of affairs of its subsidiaries. Correct Answer True Multiple Choice Multiple Answer Question Statutory Report pertains to :Correct Answer Funds raised by the company , Utilisation of funds , Investments made by the company Select The Blank Question The ________ issue shall be by way of public issue. Correct Answer NCD Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Select The Blank Question The shares with differential voting rights shall not exceed ________ of the total share capital issued. Correct Answer 0.25 Multiple Choice Single Answer Question What does salary or wage include? Correct Answer Dearness allowance

True/False Question A probationer is an employee and as such is not entitled to business. Correct Answer False Multiple Choice Multiple Answer Question Ordinary business includes :Correct Answer Declaration of dividend , Appointment of directors , Appointment of auditor Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Explanatory Statement should be annexed to Notice for :Correct Answer Special business Multiple Choice Multiple Answer Question Following are the Forms to be submitted to ROC for incorporation of company :Correct Answer Form 29 , Form 1 , Form 32 True/False Question The Board has power to alter Articles of Association being internal document. Correct Answer False Match The Following Question Correct Answer Your Answer Internal auditor Employee of the company Employee of the company Insolvent A person who is not in a position to pay his dues A person who is not in a position to pay his dues Moral turpitude Doing immoral things Doing legal things Call on share Demand of remaining part of share capital value Demand of remaining part of share capital value Multiple Choice Single Answer Question A person can not be appointed as managing or whole time director in more than :Correct Answer Two companies Multiple Choice Single Answer Question To whom does the payment of wages act apply to ? Correct Answer Persons employed in any factory 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 Multiple Choice Single Answer Question What is the minimum salary under which the persons are covered in this act? Correct Answer Less than Rs 1600 True/False Question A General Meeting may also be called by giving shorter notice than 21 days.

Correct Answer True True/False Question An employee employed through contractors on building operations is entitled to bonus. Correct Answer False Multiple Choice Single Answer Question Proxy form should be deposited with the company :Correct Answer 48 hours before the meeting Multiple Choice Multiple Answer Question Who has not prescribed particular set of documentation for current account remittances? Correct Answer RBI , Central Govt. Question Sweeping powers such as search and arrest contained in Foreign Exchange ________ Act. Correct Answer Control True/False Question Wages include any house accommodation, supply of light medical attendance etc. Correct Answer False Multiple Choice Multiple 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 Multiple Choice Multiple Answer Question The board of directors shall exercise these powers only at board meetings :Correct Answer Power to issue debentures , Power to borrow money , Power to make calls on shares Multiple Choice Single Answer Question The director after his appointment, has to give consent in writing to act as director in :Correct Answer Form no 29 Select The Blank Question The management should clearly disclose ________ in auditors report Correct Answer Contingent liabilities Multiple Choice Multiple Answer Question Current Account transactions include :Correct Answer Payments for foreign Trade , Payments for Interest , Foreign Travel Expenses Match The Following Question Correct Answer Your Answer Interim Dividend Board of Directors Board of Directors Shorter notice for AGM Private Limited Company Private Limited Company Books of Account Form 23AA Form 23AA Accounting Standards National Advisory Committee National Advisory Committee Multiple Choice Multiple Answer Question Indian IT. companies are allowed to acquire shares in foreign companies on following conditions :Correct Answer Investment limit of US $ 100 Million , Investment 10 times the export earnings True/False Question Companies listed on recognized stock exchange are not

allowed to invest in foreign companies. Correct Answer False Multiple Choice Single Answer Question Number of shareholders entitled to requisition a meeting shall be carrying Correct Answer Not less than 10 per cent of voting power 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 Select The Blank Question The detention period where the amount of penalty is greater than 10 million is ________. Correct Answer 3 years Multiple Choice Multiple Answer Question Following have the right to inspect books of account :Correct Answer Any Director of the company , Officer of SEBI (if authorised) , Authorised officer of Government 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 Select The Blank Question Free selling/drawl of foreign exchange to authorized dealer(AD) for ________. Correct Answer Current account Multiple Choice Single Answer Question Whenever the Loan taken from bank or financial institution is repaid in full, the company has to file Form no 17 &13 within :Correct Answer 30 Days 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 Multiple Choice Multiple Answer Question What are the general provisions for punishment of other offences? Correct Answer Section 22 provides for the provision , Punishable with fine , Rs 500 fine LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Form no 17 &13 are to be filed when the entire loan amount is repaid. Correct Answer True Your Answer True Multiple Choice Multiple 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 Remuneration under any award , Settlement between the parties

or order of court , Overtime Select The Blank Question The definition of ECB in India is partly in alignment with ________ Act. Correct Answer FERA Your Answer FERA True/False Question Company may have nominee director. Correct Answer True Your Answer False Multiple Choice Multiple Answer Question Boards Report shall include :Correct Answer Dividend recommended , Financial position of the company , Amounts transferred to Reserves Your Answer Dividend recommended , Financial position of the company , Amounts transferred to Reserves True/False Question Every company has to inform ROC about the place where it keeps books of account. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Who is entitled to bonus? Correct Answer Temporary workmen , Part time employee , Retrenched employee Your Answer Temporary workmen , Part time employee , Retrenched employee Multiple Choice Multiple Answer Question Debentures can be :Correct Answer Redeemable , Convertible , Party convertible and redeemable Your Answer Redeemable , Convertible , Party convertible and redeemable True/False Question A non executive director is not a substantial shareholder of the company. Correct Answer True Your Answer True Select The Blank Question Liability clause can be found in ________. Correct Answer Memorandum of Association Your Answer Memorandum of Association Select The Blank Question Under the industrial disputes act 1947________is an appropriate government. Correct Answer Central government Your Answer Central government Multiple Choice Multiple Answer Question Directors Responsibility Statement refers to :Correct Answer Going concern , Accounting policies , Accounting standards Your Answer Going concern , Accounting policies , Accounting standards Multiple Choice Multiple Answer Question The provision related to register are not applicable to :Correct Answer Banking company or insurance company , A company whose principle business is acquisition of shares, stock, debentures or other securities , A private limited company unless it is a

subsidiary of public company. Your Answer Banking company or insurance company , A company whose principle business is acquisition of shares, stock, debentures or other securities , A private limited company unless it is a subsidiary of public company. True/False Question A director is not required to take qualification share. Correct Answer False Your Answer False Select The Blank Question The Forms 8 &13 should be filed in ________ to ragistrar of companies. Correct Answer Triplicate Your Answer Triplicate Select The Blank Question Payment of ________ requires registration from RBI. Correct Answer Royalty Your Answer Royalty Select The Blank Question Board has power to receive of notice of ________. Correct Answer Disclosure of interest Your Answer Disclosure of interest Multiple Choice Single Answer Question As per the provisions of Companies Act 1956, company can issue shares with :Correct Answer Differential voting rights Your Answer Differential voting rights True/False Question Indian companies are exempted from filing a return by ECB-2. Correct Answer False Your Answer False Multiple Choice Single Answer Question When was the factories act passed? Correct Answer In 1948 Your Answer In 1948 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 Multiple Choice Single Answer Question Maximum fine which can be levied for default in placing accounts before AGM is :Correct Answer Rs. 50,000 Your Answer Rs. 50,000 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 Multiple Choice Single Answer Question Which person is responsible for he payment of wages act ? Correct Answer Managers Your Answer Managers

Multiple Choice Single Answer 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer Question There should not be a gap of more than 15 months between :Correct Answer Two annual general meetings Your Answer Two annual general meetings Multiple Choice Multiple Answer 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 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 True/False Question Wages does not include an amenity or service or special order of the appropriate government. Correct Answer True Your Answer True Multiple Choice Single Answer 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 Multiple Choice Single Answer Question Outside India residents have Automatic Route of RBI for investments for this activity :Correct Answer 26% in Insurance Your Answer 26% in Insurance Multiple Choice Single Answer Question After incorporation of the company, the first auditor is generally appointed within :Correct Answer One Month Your Answer One Month Multiple Choice Single Answer 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 Multiple Choice Multiple Answer 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 Select The Blank Question ________ is one of the critical matter which should be decided by the postal ballot. Correct Answer Corporate restructuring Your Answer Corporate restructuring Multiple Choice Single Answer Question Companies Act presently implemented and adhered by companies is :Correct Answer Companies Act, 1956 Your Answer Companies Act, 1956 Multiple Choice Multiple Answer Question The annual accounts of the company are signed on behalf of the Board by :Correct Answer Managing director , Two Directors , Company Secretary Your Answer Managing director , Two Directors , Company Secretary Match The Following Question Correct Answer Your Answer 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 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. Select The Blank Question WOS can make payment of royalty by ________ route. Correct Answer Automatic route Your Answer Automatic route Select The Blank Question Every ________ Company has to hold Statutory Meeting of the members. Correct Answer Public Your Answer Public True/False Question Company can not issue shares with differential voting/ dividend rights.

Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Private Company means a company which :Correct Answer Limits number of members , Prohibits invitation to public for shares , Prohibits invitation to public for deposits Your Answer Limits number of members , Prohibits invitation to public for shares , Prohibits invitation to public for deposits Multiple Choice Single Answer Question In one financial year other than Nepal & Bhutan the investments in other countries should not exceed more than :Correct Answer US $ 100 Million Your Answer US $ 100 Million Multiple Choice Multiple Answer 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 Select The Blank Question The chairman of the audit committee shall attend ________ to provide clarification on matters relating to audit. Correct Answer Annual general meeting Your Answer Annual general meeting Multiple Choice Single Answer Question What right does the payment of bonus act give ? Correct Answer Statutory right to share in profits Your Answer Statutory right to share in profits LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Multiple Choice Multiple Answer 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 Private Companies , Non Profit making companies , Foreign companies True/False Question Bonus is an ex gratia payment. Correct Answer False Your Answer False

Multiple Choice Single Answer Question The Board is required to give explanation for the adverse remark given by :Correct Answer Auditor Your Answer Auditor Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Who decided about the philosophy and the significance of the conditions in India? Correct Answer Supreme court Your Answer Supreme court Multiple Choice Multiple Answer Question Who is not entitled to bonus? Correct Answer An apprentice , Employee employed through contractors Your Answer An apprentice , Employee employed through contractors True/False Question Default in placing annual accounts before AGM may result in imprisonment. Correct Answer True Your Answer True Multiple Choice Single Answer Question Audit committee shall consist of not less than :Correct Answer Three directors Your Answer Three directors 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 Every employer responsible for payment to employed persons Multiple Choice Multiple Answer Question Board of directors have to take consent of general meeting for :Correct Answer Sale, lease or dispose of companys 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 companys property , Give time to repayment of debt due by director , Contribute to charitable funds exceeding Rs 50000/- or 5% of average net profits Multiple Choice Single Answer Question As per the provisions of Companies Act 1956, no company can issue preference shares which are irredeemable or redeemable after a period of :Correct Answer 20 years Your Answer 5 years Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Cap on investment by person resident outside India, for Housing & Real Estate Sector is :Correct Answer 1 Your Answer 1 Multiple Choice Multiple Answer 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 True/False Question Retiring director may be eligible for reappointment. Correct Answer True Your Answer True True/False Question Every company shall have a qualified and independent audit committee. Correct Answer True Your Answer False Multiple Choice Single Answer Question ECB stands for :Correct Answer External Commercial Borrowings Your Answer External Commercial Borrowings Select The Blank Question ________shall certify that they have reviewed the balance sheet and profit and loss account. Correct Answer CEO Your Answer CEO Multiple Choice Single Answer Question Deductions are authorized under which section? Correct Answer Section 7(2) Your Answer Section 7(2) True/False Question Indian companies cant borrow funds in Rupees. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question WOS are allowed to :Correct Answer Pay royalty , Offshore payment , By automatic route Your Answer Pay royalty , Offshore payment , By automatic route 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 Multiple Choice Multiple Answer 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 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 Any gratuity payable on termination of employment is included in wages. Correct Answer False Your Answer False Multiple Choice Single Answer Question Any contract or arrangement in which director is interested has to be recorded in :Correct Answer Register of contracts Your Answer Register of contracts Select The Blank Question Multimodal ________ making remittance to their agents abroad. Correct Answer Transport operators Your Answer Transport operators Select The Blank Question The act defines ________ in private sector and public sector. Correct Answer Establishment Your Answer Employee True/False Question A company can be incorporated with the name using words Hindustan, India. Correct Answer True Your Answer True Multiple Choice Multiple Answer

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 charged to revenue account 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 Select The Blank Question If the articles are silent who will be the ________ director of the company, the subscribers to the members shall deemed to be directors of the company. Correct Answer First Your Answer First True/False Question Preference share holders are creditors of the company. Correct Answer False Your Answer False Multiple Choice Multiple Answer 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 He is found to be of unsound mind , He is declared as an insolvent , He has not taken qualification shares Multiple Choice Single Answer Question For using the words Industry/ Udyog, the minimum authorised capital should be :Correct Answer Rupees One crore

Your Answer Rupees Five lac Multiple Choice Single Answer Question What types of rates can be fixed for different zones and localities? Correct Answer Different Your Answer Different 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 Multiple Choice Single Answer Question Minutes of general meeting are to be finalised and signed within :Correct Answer 30 days Your Answer 30 days Select The Blank Question The form should be filled within ________ days from the date of execution of document. Correct Answer 30 days Your Answer 21 days Multiple Choice Single 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 2 years Multiple Choice Multiple Answer 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 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 Senior managers are members of management, one level below the executive director. Correct Answer True Your Answer False Match The Following Question Correct Answer Your Answer Bifurcation Voted for/ against Not less than 5 % voting power Ordinary resolution Simple majority Simple majority Requisition of members Not less than 5 % voting power Form 32 Special resolution Form 23 Form 23 Multiple Choice Multiple Answer Question Company can take loan from :Correct Answer Banks , Financial Institutions , Debenture Holders Your Answer Banks , Financial Institutions Select The Blank Question ________ includes legal representative of deceased employer. Correct Answer Employer Your Answer Employee LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Board may by resolution passed at the meeting delegate the powers to :Correct Answer Manager , Committee of directors , Managing director Your Answer Committee of directors , Managing director Multiple Choice Single Answer Question What is the optimum combination of Board of Directors? Correct Answer Managing Directors and Secretary Your Answer Executive and non executive Directors 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 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 Acquiring foreign security on gift is allowed. Correct Answer True Your Answer True Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer Question Remuneration to the director may be paid :Correct Answer Monthly , Quarterly , Annually Your Answer Monthly , Quarterly , Annually Multiple Choice Single Answer Question Single director can sign the annual accounts if :Correct Answer Only one director in India for the time being Your Answer There is only one director in the company 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 3 Multiple Choice Single Answer Question Define an employed person under section 2 of the act. Correct Answer Includes legal representative of a deceased employed person Your Answer Any establishment 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 True/False Question Wages includes the value of any house accommodation or supply of light and water. Correct Answer False Your Answer False Multiple Choice Multiple Answer 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 It is the primary ________ of the company to file the documets of creation of charge. Correct Answer Responsibility Your Answer Duty Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Surrender of foreign exchange is regulated as per :Correct Answer RBI Norms Your Answer FMCG Norms Select The Blank Question For making alterations before ROC, ________ is required. Correct Answer Power of Attorney Your Answer Power of Attorney True/False Question Senior managers are members of management, one level below the executive director. Correct Answer True Your Answer True Multiple Choice Single Answer Question Which companies have to comply with the provisions of Clause 49 of listing agreement ? Correct Answer Listed Companies Your Answer Listed Companies Multiple Choice Single Answer Question What right does the payment of bonus act give ? Correct Answer Statutory right to share in profits Your Answer Statutory right to share in profits Multiple Choice Multiple Answer Question Indian IT. companies are allowed to acquire shares in foreign companies on following conditions :Correct Answer Investment limit of US $ 100 Million , Investment 10 times the export earnings Your Answer Investment limit of US $ 100 Million , Investment 10 times the export earnings Select The Blank Question Foreign companies may open Project Office in India after approval of ________. Correct Answer RBI Your Answer RBI Multiple Choice Multiple Answer Question Directors Responsibility Statement refers to :Correct Answer Going concern , Accounting policies , Accounting standards Your Answer Going concern , Accounting policies , Accounting standards Multiple Choice Single Answer Question s

Correct Answer In 1936 Your Answer In 1946 Multiple Choice Single Answer 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 Multiple Choice Single Answer Question Which person is responsible for he payment of wages act ? Correct Answer Managers Your Answer Managers True/False Question Foreign technical collaborations are permitted. Correct Answer False Your Answer True Multiple Choice Single 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 True/False Question Form no 17 &13 are to be filed when the entire loan amount is repaid. Correct Answer True Your Answer True 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 For which any application claim has already been presented , Direction of claim already given , Amount adjudged is not due to penalty Your Answer For which any application claim has already been presented , Direction of claim already given , Amount adjudged is not due to penalty Multiple Choice Single Answer Question Any contravention of provisions of FEMA will attract penalty upto :Correct Answer Rs. 200000 Your Answer Rs. 200000 Multiple Choice Single Answer Question The responsibility of placing the annual accounts before the AGM is on Correct Answer Board of Directors Your Answer Chief Executive Officer (CEO) 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 True/False Question A proxy can appoint another proxy. Correct Answer False Your Answer False

Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Your Answer Arvind mills ltd case Multiple Choice Single Answer 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 Multiple Choice Multiple Answer 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 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 50 True/False Question Sectoral cap on investment by person resident outside India on Mass rapid Transport is 50%. Correct Answer False Your Answer True True/False Question In case of Postal Ballot, result is announced through post. Correct Answer False Your Answer False Select The Blank Question Payment of ________ requires registration from RBI. Correct Answer Royalty Your Answer Remuneration Select The Blank Question ________ of the company has a right to take inspection of the books of account. Correct Answer Any Director Your Answer Chief Executive Officer (CEO) Select The Blank Question The definition of ECB in India is partly in alignment with ________ Act. Correct Answer FERA Your Answer FERA Multiple Choice Multiple Answer Question Following have the right to inspect books of account :Correct Answer Any Director of the company , Officer of SEBI (if authorised) , Authorised officer of Government Your Answer Any Director of the company , Officer of SEBI (if authorised) , Authorised officer of Government Match The Following Question Correct Answer Your Answer

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 Multiple Choice Multiple Answer Question Borrowings for Indian companies are for :Correct Answer In Rupees , On repatriation , Non-repatriation Your Answer In Rupees , On repatriation , Non-repatriation 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 Employee of the company LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question For which activity FDI is not prohibited? Correct Answer Insurance Your Answer Insurance Multiple Choice Multiple Answer Question Remuneration to the director may be paid :Correct Answer Monthly , Quarterly , Annually Your Answer Quarterly , Annually , Monthly Multiple Choice Single Answer Question Payment of wages act came into existence :-

Correct Answer To ensure regular and timely payment of wages to employed persons Your Answer To ensure regular and timely payment of wages to employed persons Multiple Choice Single 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 Multiple Choice Multiple Answer Question Sole selling agent may be :Correct Answer An Individual , A firm , A Body corporate Your Answer An Individual , A firm , A Body corporate Multiple Choice Single Answer Question When was the factories act passed? Correct Answer In 1948 Your Answer In 1948 Multiple Choice Single Answer 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 True/False Question Bonus is an ex gratia payment. Correct Answer False Your Answer False Multiple Choice Single Answer Question Compliance Report is signed by :Correct Answer Company Secretary in practice Your Answer Company Secretary in practice Multiple Choice Single 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 International labour organisation 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 Multiple Choice Multiple Answer 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 He is found to be of unsound mind , He is declared as an insolvent , He has not taken qualification shares Multiple Choice Single 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 National Advisory Committee Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer Question Director can be appointed without counting the number in :Correct Answer Private limited company , Unlimited company , Charitable association Your Answer Charitable association Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 Select The Blank Question Under the industrial disputes act 1947________is an appropriate government. Correct Answer Central government Your Answer Central government Multiple Choice Single Answer 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 Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Your Answer Arvind mills ltd case 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 Fidelity guarantee bond 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 Multiple Choice Multiple Answer 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 Power to make calls on shares , Power to issue debentures , Power to borrow money Multiple Choice Single Answer Question Explanatory Statement should be annexed to Notice for :Correct Answer Special business Your Answer Special business Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Preference share holders are creditors of the company. Correct Answer False Your Answer True True/False Question After completion of Ordinary business other business is transacted at Extra ordinary General Meeting. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Form No. 1 can be signed by :Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate Your Answer Chartered Accountant , Management Accountant , Cost & Works Accountant Multiple Choice Multiple Answer Question Different classes of shareholders meetings are :Correct Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary

General Meeting Your Answer Annual General Meeting , Statutory Meeting , Extra-Ordinary General Meeting Select The Blank Question SIA/FIPB approval is necessary where sectoral limits are ________. Correct Answer Exceeded Your Answer Exceeded True/False Question Every company taking loan from the bank or Financial Institution has to create a charge on the assets. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question FDI prohibited activities are :Correct Answer Retail trading , Gambling & betting , Housing & real estate Your Answer Retail trading , Gambling & betting , Housing & real estate Multiple Choice Multiple Answer Question Sole selling agent may be :Correct Answer An Individual , A firm , A Body corporate Your Answer An Individual , A firm , An Auditor Multiple Choice Multiple Answer Question Who has not prescribed particular set of documentation for current account remittances? Correct Answer RBI , Central Govt. Your Answer State Bank of India , RBI , Central Govt. Multiple Choice Multiple Answer Question Public limited companys directors have following conditions :Correct Answer Minimum number is three , Should be individuals , Have sound mind Your Answer Minimum number is three , Should be individuals , Have sound mind Select The Blank Question A ________ shall not be made for the appointment of two or more persons as directors of the company by single resolution in any general meeting of public company, unless resolution has

been agreed by meeting without any vote being given against it. Correct Answer Motion Your Answer Resolution Multiple Choice Single Answer Question When was the minimum wages act passed ? Correct Answer 1948 Your Answer 1948 Select The Blank Question All transactions of the ________ with the company shall be disclosed in the annual report. Correct Answer Non executive chairman Your Answer Chairman Multiple Choice Multiple Answer Question Object Clauses are divided into :Correct Answer Main Object , Object incidental or ancillary to Main , Other Objects Your Answer Object incidental or ancillary to Main , Other Objects , Main Object Select The Blank Question ________shall certify that they have reviewed the balance sheet and profit and loss account. Correct Answer CEO Your Answer CEO True/False Question Wages does not include an amenity or service or special order of the appropriate government. Correct Answer True Your Answer True Select The Blank Question As per section ________ it is obligatory on every person responsible for payment. Correct Answer 4 Your Answer 2 Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question What does the minimum wages act determine ? Correct Answer The minimum wages in industries specified in the schedule Your Answer The minimum wages in industries specified in the schedule Select The Blank Question Under the industrial disputes act 1947________is an appropriate government. Correct Answer Central government Your Answer Central government Multiple Choice Single Answer 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 Match The Following Question Correct Answer Your Answer Capital Account Guarantee by a person resident Current Account Living Expenses Current Account Personal Account Deposits Capital Account Capital Account The Adjudicating Authority Power of Classification Accounting Authority Multiple Choice Single Answer Question Authentication of Annual Accounts means :Correct Answer Correctness of the accounts Your Answer Correctness of the accounts True/False

Question Every company shall have a qualified and independent audit committee. Correct Answer True Your Answer True Multiple Choice Single Answer Question What does salary or wage include? Correct Answer Dearness allowance Your Answer Dearness allowance Multiple Choice Single Answer Question At any general meeting, unless a poll is demanded, resolution put to vote is decided by :Correct Answer Show of hands Your Answer Show of hands Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Explanatory Statement should be annexed to Notice for :Correct Answer Special business Your Answer Special resolutions Select The Blank Question The auditor has to give his report that the accounts of the company gives ________. Correct Answer True & Fair view Your Answer True & Correct View Multiple Choice Single Answer 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 done in such employment

Match The Following Question Correct Answer Your Answer 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 specific purpose related to audit Quorum Minimum required persons for meeting Minimum required persons for meeting Multiple Choice Single Answer Question Application for Incorporation of the Company is to be submitted to :Correct Answer Registrar of Companies Your Answer Registrar of Companies True/False Question There is no quorum for board meeting Correct Answer False Your Answer False Multiple Choice Single Answer Question What amount of paid up capital should the listed companies have to comply with the provisions of Clause 49 of listing agreement ? Correct Answer Rs 3 crores Your Answer Rs 6 crores True/False

Question Authorized dealer is required to avail license under the exim policy in force. Correct Answer True Your Answer True Select The Blank Question The detention period where the amount of penalty is greater than 10 million is ________. Correct Answer 3 years Your Answer 10 Years Multiple Choice Multiple Answer Question What is the role of the audit committee? Correct Answer Review the annual financial statements , Recommending and appointment of external auditors , Reviewing the companys financial and risk management policies Your Answer Review the annual financial statements , Recommending and appointment of external auditors , Reviewing the companys financial and risk management policies Multiple Choice Single Answer Question After incorporation of the company, the first auditor is generally appointed within :Correct Answer One Month Your Answer One Month 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 False Multiple Choice Multiple Answer Question Particulars of charge under sec.125 contain :Correct Answer Date & description of the instrument creating the charge , Amount secured by the charge , Short particulars of the asset to be charged Your Answer Date & description of the instrument creating the charge , Amount secured by the charge , Short particulars of the asset to be charged 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 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 chairman Multiple Choice Single Answer 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 Free selling/drawl of foreign exchange to authorized dealer(AD) for ________. Correct Answer Current account Your Answer Current account True/False Question Directors Report may contain details/ state of affairs of its subsidiaries. Correct Answer True Your Answer True Select The Blank Question The act defines ________ in private sector and public sector. Correct Answer Establishment Your Answer Wages Multiple Choice Multiple Answer 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

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Board has power to receive of notice of ________. Correct Answer Disclosure of interest Your Answer Disclosure of interest True/False Question Wages includes the value of any house accommodation or supply of light and water. Correct Answer False Your Answer True Multiple Choice Single Answer Question Maximum fine which can be levied for default in placing accounts before AGM is :Correct Answer Rs. 50,000 Your Answer Rs. 50,000 Match The Following Question Correct Answer Your Answer allocable surplus 67% surplus in the accounting year 67% surplus in the accounting year salary does not include travelling concession employee public sector establishment establishment owned by government award interim and final determination of an industrial dispute award award Select The Blank Question As per section ________ it is obligatory on every person responsible for payment. Correct Answer 4 Your Answer 4 Multiple Choice Multiple Answer Question Remuneration to the director may be paid :Correct Answer Monthly , Quarterly , Annually Your Answer Monthly , Quarterly , Annually Multiple Choice Single Answer 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 Select The Blank Question The auditor has to give his report that the accounts of the company gives ________. Correct Answer True & Fair view Your Answer True & Fair view Select The Blank Question Articles of Association are rules for ________.

Correct Answer Internal management Your Answer Voting on resolutions Multiple Choice Multiple Answer 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 charged to revenue account , Whether directors have taken loan from company True/False Question Financial year and calendar year are one and the same thing. Correct Answer False Your Answer False Multiple Choice Single Answer Question Minimum gap required between date of dispatch of notice and date of AGM is :Correct Answer 25 days Your Answer 25 days Select The Blank Question First AGM should be held within ________ from closure of financial year. Correct Answer 9 months Your Answer 9 months Select The Blank Question Every ________ Company has to hold Statutory Meeting of the members. Correct Answer Public Your Answer Limited 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 True/False Question Any gratuity payable on termination of employment is included in wages. Correct Answer False Your Answer False Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer

Question Borrowings for Indian companies are for :Correct Answer In Rupees , On repatriation , Non-repatriation Your Answer In Rupees , On repatriation , Non-repatriation Multiple Choice Single Answer Question Deductions are authorized under which section? Correct Answer Section 7(2) Your Answer Section 7(2) Multiple Choice Single Answer Question For which activity FDI is not prohibited? Correct Answer Insurance Your Answer Insurance Multiple Choice Single Answer Question Settlement of gift or lawful obligation shall be surrendered within :Correct Answer Seven days Your Answer Eight days Select The Blank Question The shares with differential voting rights shall not exceed ________ of the total share capital issued. Correct Answer 0.25 Your Answer 0.2 Multiple Choice Single Answer Question How much percentage of block of voting shares does the independent director not own ? Correct Answer 0.02 Your Answer 0.02 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 Multiple Choice Multiple Answer Question What are the general provisions for punishment of other offences? Correct Answer Section 22 provides for the provision , Punishable with fine , Rs 500 fine Your Answer Section 22 provides for the provision , Punishable with fine 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 Multiple Choice Single Answer Question Cap on investment by person resident outside India, for Housing & Real Estate Sector is :Correct Answer 1 Your Answer 1 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer Question Sole selling agent may be :-

Correct Answer An Individual , A firm , A Body corporate Your Answer An Individual , A firm , A Body corporate Match The Following Question Correct Answer Your Answer Regisrtered Morthgage Means paying stamp duty on assets Payment of prescribed fee with R.O.C Charge Payment of prescribed fee with R.O.C Attaching rights on assets Mortgage It is done in respect of immovable property It is done in respect of immovable property Hypothecation It is done in respect of It is done in respect of movable property movable property Multiple Choice Multiple Answer Question Remittance completely prohibited on :Correct Answer Dividend balancing , Telephone expanses , Interest on funds Your Answer Dividend balancing , Interest on funds Multiple Choice Multiple Answer Question Preference shares can be :Correct Answer Cumulative redeemable , Non- cumulative redeemable , Participatory Your Answer Cumulative redeemable , Non- cumulative redeemable , Participatory Multiple Choice Multiple Answer Question Person permanently resident in India can return foreign exchange by :Correct Answer From AD , Travelling abroad , As a gift Your Answer From AD , Travelling abroad , As a gift Select The Blank Question Under section ________ period in respect of which wages would be paid would be determined. Correct Answer 3 Your Answer 5 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 Multiple Choice Multiple Answer Question Following have the right to inspect books of account :Correct Answer Any Director of the company , Officer of SEBI (if authorised) , Authorised officer of Government Your Answer Any Director of the company , Officer of SEBI (if authorised) , Authorised officer of Government Multiple Choice Single Answer Question The earlier Fast Track investments route has been replaced by? Correct Answer Automatic Your Answer Automatic Multiple Choice Single Answer

Question The maximum number of Directors that every company shall have is :Correct Answer Twelve Your Answer Twelve 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 True/False Question Foreign technical collaborations are permitted. Correct Answer False Your Answer True Multiple Choice Multiple Answer 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 True/False Question A proxy can appoint another proxy. Correct Answer False Your Answer False True/False Question A non executive director is not a substantial shareholder of the company. Correct Answer True Your Answer True True/False Question Proposal for project exports has been delegated to the approving authority. Correct Answer False Your Answer True Multiple Choice Single Answer 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 8 True/False Question Authorized dealer is required to avail license under the exim policy in force. Correct Answer True Your Answer True Multiple Choice Single Answer Question FEMA allows free selling of foreign exchange to/from whom from current transaction? Correct Answer Authorised Dealer Your Answer Authorised Dealer LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 There should be a gap of more than 4 months to have the meeting of the board of directors. Correct Answer False Your Answer False Multiple Choice Multiple Answer 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 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 Payment of ________ requires registration from RBI. Correct Answer Royalty Your Answer Royalty True/False Question The Board has power to alter Articles of Association being internal document. Correct Answer False Your Answer False Multiple Choice Single Answer Question A director is deemed to be interested in a contract if he holds paid up capital of the company exceeding :Correct Answer 0.02 Your Answer 0.02 Match The Following Question Correct Answer Your Answer Capital Account Guarantee by a person resident Accounting Authority Living Expenses Current Account Current Account Deposits Capital Account Capital Account The Adjudicating Authority Power of Classification Guarantee by a person resident Multiple Choice Single Answer Question Any contract or arrangement in which director is interested has to be recorded in :Correct Answer Register of contracts Your Answer Register of directors Multiple Choice Single Answer Question Quorum required to hold a valid meeting can be prescribed in :Correct Answer Articles of Association Your Answer Articles of Association Select The Blank

Question Every private company should have minimum ________ directors. Correct Answer Two Your Answer Two True/False Question A General Meeting may also be called by giving shorter notice than 21 days. Correct Answer True Your Answer False Multiple Choice Single Answer Question The Board of directors of the company has power to appoint an additional director :Correct Answer Up to maximum permissible limit Your Answer Up to maximum permissible limit Select The Blank Question Articles of Association are rules for ________. Correct Answer Internal management Your Answer Running business of Company Multiple Choice Multiple Answer Question WOS are allowed to :Correct Answer Pay royalty , Offshore payment , By automatic route Your Answer Pay royalty , Offshore payment , By automatic route Select The Blank Question ________shall certify that they have reviewed the balance sheet and profit and loss account. Correct Answer CEO Your Answer CEO Multiple Choice Multiple Answer 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 , Private Companies , Non Profit making companies Multiple Choice Multiple Answer Question What are the penalties for the offences done ? Correct Answer Fine which may extend to 6 months , May extend to Rs 500 , Fine as well as Rs 500 Your Answer Fine which may extend to 6 months , May extend to Rs 500 , Fine as well as Rs 500 Select The Blank Question Under the industrial disputes act 1947________is an appropriate government. Correct Answer Central government Your Answer Central government Multiple Choice Multiple Answer 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 Multiple Choice Multiple 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 Remuneration under any award , Settlement between the parties or order of court , Overtime 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 True/False Question An independent Director is not an executive director of a Company. Correct Answer False Your Answer True Select The Blank Question When a money is raised through ________ it shall disclose to the audit committee. Correct Answer Initial public offering Your Answer Initial public offering Multiple Choice Multiple Answer Question Person permanently resident in India can return foreign exchange by :Correct Answer Travelling abroad , As a gift , From AD Your Answer From AD , Travelling abroad , As a gift True/False Question Bonus is an ex gratia payment. Correct Answer False Your Answer False Multiple Choice Single Answer Question Proxy form should be deposited with the company :Correct Answer 48 hours before the meeting Your Answer 48 hours before the meeting Select The Blank Question The minimum wages act came in force in the year________. Correct Answer 1948 Your Answer 1958 True/False Question A director is not required to take qualification share. Correct Answer False Your Answer False Multiple Choice Single Answer Question Venture capital Funds are regulated as per the Norms of :Correct Answer SEBI Your Answer NABARD True/False Question Wages includes any travelling allowance for travel concession. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Public Company means a company which :Correct Answer Has a minimum paid-up share-capital of Rs. 5 lac , Is private company which is subsidiary of public company , Is not a private company

Your Answer Has a minimum paid-up share-capital of Rs. 5 lac , Is private company which is subsidiary of public company , Is not a private company True/False Question Deductions for income tax, payable by the employed person is permissible. Correct Answer True Your Answer True Multiple Choice Single Answer Question As per the provisions of Companies Act 1956, company can issue shares with :Correct Answer Differential voting rights Your Answer Differential voting rights Match The Following Question Correct Answer Your Answer Majority members Independent Independent Audit committee Seek information about the employee Independent Quorum for audit committee 2 members or 1/3rd of members 2 members or 1/3rd of members Members of audit committee Non executive directors Seek information about the employee Multiple Choice Multiple Answer 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 True/False Question The independent director is a supplier of a service provider of the company. Correct Answer False Your Answer False Multiple Choice Single Answer Question What does the minimum wages act determine ? Correct Answer The minimum wages in industries specified in the schedule Your Answer The minimum wages in industries specified in the schedule Select The Blank Question Private Company prohibits public to ________ for any shares. Correct Answer Subscribe Your Answer Subscribe Multiple Choice Single Answer Question Unless the articles of association otherwise provide, every director has to hold the shares of nominal value of Rs.:Correct Answer 5000/Your Answer 10000/Multiple Choice Multiple Answer Question The provision related to register are not applicable to :-

Correct Answer Banking company or insurance company , A company whose principle business is acquisition of shares, stock, debentures or other securities , A private limited company unless it is a subsidiary of public company. Your Answer A private limited company unless it is a subsidiary of public company. , A listed company Multiple Choice Single Answer Question The notice of the meeting be sent to all the directors at their :Correct Answer Usual residential address Your Answer Usual postal address Multiple Choice Single Answer Question Maturity period for foreign currency credit by overseas suppliers is :Correct Answer More than 6 months & less 3 years Your Answer More than 3 months & less 3 years Select The Blank Question ________ is a scheduled employment carried out under the authority of central government. Correct Answer Competent authority Your Answer Employer Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :Correct Answer Company Law Board Your Answer Company Law Board Multiple Choice Multiple Answer Question Borrowings for Indian companies are for :Correct Answer In Rupees , On repatriation , Non-repatriation Your Answer In Rupees , On repatriation IST OF ATTEMPTED QUESTIONS AND ANSWERS 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

Multiple Choice Single Answer Question A director has to vacate his office, if he is adjudged as :Correct Answer Insolvent Your Answer Insolvent Multiple Choice Single Answer 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 policy in force. Correct Answer True Your Answer True Multiple Choice Single Answer Question The earlier Fast Track investments route has been replaced by? Correct Answer Automatic Your Answer Automatic Multiple Choice Single Answer 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 Multiple Choice Single Answer Question Payment of wages act came into existence :Correct Answer To ensure regular and timely payment of wages to employed persons 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 International labour organisation Your Answer International labour organisation Multiple Choice Multiple 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 Multiple Choice Multiple Answer Question What do youmean 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 Multiple Choice Single Answer 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 Multiple Choice Single 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 Multiple Choice Single Answer 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 Multiple Choice Multiple 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 National Advisory Committee Appointment of Managing Director Ordinary Resolution Board of Directors Accounting Standards National Advisory Committee 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 Multiple Choice Multiple Answer Question Boards 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer

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 Multiple Choice Single Answer Question Companies Act presently implemented and adhered by companies is :Correct Answer Companies Act, 1956 Your Answer Companies Act, 1956 Multiple Choice Multiple Answer Question Sole selling agent may be :Correct Answer An Individual , A firm , A Body corporate Your Answer An Individual , A firm , A Body corporate Select The Blank Question To avoid conflicts of interest, ________ committee would determine the remuneration packages of the executive directors. Correct Answer Remuneration Your Answer Board members Multiple Choice Single Answer 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 Multiple Choice Single Answer 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 Multiple Choice Multiple Answer 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 Power to make calls on shares , Power to issue debentures , Power to borrow money Multiple Choice Single Answer Question The period for realization for export of goods from the date of shipment is at :Correct Answer Six month

Your Answer Six month Multiple Choice Single Answer Question Accounting Standards are issued by :Correct Answer Institute of Chartered Accountants Your Answer Institute of Chartered Accountants Multiple Choice Multiple 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 Remuneration under any award , Settlement between the parties or order of court , Overtime Multiple Choice Multiple Answer 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 Select The Blank Question ________means all remuneration expressed in terms of money. Correct Answer Wages Your Answer Wages Multiple Choice Multiple Answer 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 Every employer responsible for payment to employed persons Multiple Choice Multiple Answer 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 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 Multiple Choice Multiple Answer 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 A temporary workman is not entitled to bonus though he works for a few days in the organisation. Correct Answer False Your Answer False Multiple Choice Single Answer 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question A probationer is an employee and as such is not entitled to business. Correct Answer False Your Answer True True/False Question Charge includes Mortgage. Correct Answer True Your Answer False Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Which person is responsible for he payment of wages act ? Correct Answer Managers Your Answer Managers Multiple Choice Multiple Answer Question FDI prohibited activities are :Correct Answer Retail trading , Gambling & betting , Housing & real estate Your Answer Retail trading , Gambling & betting , Housing & real estate Multiple Choice Single Answer 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. Correct Answer False Your Answer False Multiple Choice Multiple Answer 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

Multiple Choice Multiple Answer Question Remuneration to the director may be paid :Correct Answer Monthly , Quarterly , Annually Your Answer Annually Multiple Choice Single Answer 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 Multiple Choice Single Answer 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 True/False Question Wages does not include any gratuity payable on discharge. Correct Answer True Your Answer True Multiple Choice Multiple Answer 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 Question Correct Answer Your Answer 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 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. 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 Select The Blank Question WOS can make payment of royalty by ________ route. Correct Answer Automatic route Your Answer Authority route Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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. Correct Answer False Your Answer True True/False Question A non executive director is not a substantial shareholder of the company. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Directors Responsibility Statement refers to :Correct Answer Going concern , Accounting policies , Accounting standards Your Answer Going concern , Accounting policies , Accounting standards Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Authentication of Annual Accounts means :Correct Answer Correctness of the accounts Your Answer Presentation as per Act Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 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. Correct Answer False Your Answer False Select The Blank Question The ________ issue shall be by way of public issue. Correct Answer NCD Your Answer NCD Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question It should be noted that the company has to pay on loan document the :Correct Answer Stamp duty Your Answer Bank charges Multiple Choice Single Answer 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 Multiple Choice Single Answer 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. Correct Answer False Your Answer False Select The Blank Question The Postal ballot paper should be returned to the company within ________ from the dispatch of ballot paper. Correct Answer 30 days Your Answer 30 days Select The Blank Question The recommendations of audit committee relating to financial management shall be ________. Correct Answer Binding Your Answer Binding Multiple Choice Multiple Answer 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 Question Correct Answer Your Answer 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer Question Long term borrowings schemes have which maturity period? Correct Answer Eight years Your Answer Five years Multiple Choice Multiple Answer 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 ST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question A probationer is an employee and as such is not entitled to business. Correct Answer False Your Answer True True/False Question Charge includes Mortgage. Correct Answer True Your Answer False Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Which person is responsible for he payment of wages act ? Correct Answer Managers Your Answer Managers Multiple Choice Multiple Answer Question FDI prohibited activities are :Correct Answer Retail trading , Gambling & betting , Housing & real estate Your Answer Retail trading , Gambling & betting , Housing & real estate Multiple Choice Single Answer 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. Correct Answer False Your Answer False Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer Question Remuneration to the director may be paid :Correct Answer Monthly , Quarterly , Annually Your Answer Annually Multiple Choice Single Answer 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 Multiple Choice Single Answer 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 True/False Question Wages does not include any gratuity payable on discharge. Correct Answer True Your Answer True Multiple Choice Multiple Answer 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 Question Correct Answer Your Answer 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 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. 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

Select The Blank Question WOS can make payment of royalty by ________ route. Correct Answer Automatic route Your Answer Authority route Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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. Correct Answer False Your Answer True True/False Question A non executive director is not a substantial shareholder of the company. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Directors Responsibility Statement refers to :Correct Answer Going concern , Accounting policies , Accounting standards Your Answer Going concern , Accounting policies , Accounting standards Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Authentication of Annual Accounts means :Correct Answer Correctness of the accounts Your Answer Presentation as per Act Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 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. Correct Answer False Your Answer False Select The Blank Question The ________ issue shall be by way of public issue. Correct Answer NCD Your Answer NCD Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question It should be noted that the company has to pay on loan document the :Correct Answer Stamp duty Your Answer Bank charges Multiple Choice Single Answer 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 Multiple Choice Single Answer 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. Correct Answer False Your Answer False Select The Blank Question The Postal ballot paper should be returned to the company within ________ from the dispatch of ballot paper. Correct Answer 30 days Your Answer 30 days Select The Blank Question The recommendations of audit committee relating to financial management shall be ________. Correct Answer Binding Your Answer Binding Multiple Choice Multiple Answer 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 Question Correct Answer Your Answer 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer Question Long term borrowings schemes have which maturity period? Correct Answer Eight years Your Answer Five years Multiple Choice Multiple Answer 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 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer 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

Authorized dealer may freely open ________ and allow remittance for import of goods. Correct Answer Letter of credit Your Answer Letter of credit Multiple Choice Single Answer Question Which person is responsible for he payment of wages act ? Correct Answer Managers Your Answer Managers Multiple Choice Single Answer Question As per the provisions of Companies Act 1956, company can issue shares with :Correct Answer Differential voting rights Your Answer Differential voting rights Multiple Choice Single Answer 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 Multiple Choice Multiple 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 Amount by way of depreciation , Employment rebate or investment allowance , Direct tax Multiple Choice Multiple Answer 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 Multiple Choice Multiple 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 Tramway service or motor transport service engaged carrying passengers of hire or reward , Dock wharf jetty , Plantation True/False Question

A piece rated worker is entitled to bonus. Correct Answer True Your Answer True Multiple Choice Single Answer Question s Correct Answer In 1936 Your Answer In 1936 Multiple Choice Single Answer Question No preference shares can be redeemed unless they are :Correct Answer Fully paid up Your Answer Fully paid up Multiple Choice Single Answer Question What do you mean by establishment on private sector? Correct Answer Any establishment other than public sector Your Answer Any establishment other than public sector Multiple Choice Multiple Answer Question Person permanently resident in India can return foreign exchange by :Correct Answer From AD , Travelling abroad , As a gift Your Answer From AD , Travelling abroad , As a gift True/False Question Wages include any contribution paid by the employer to any pension fund or provided fund. Correct Answer False Your Answer False Multiple Choice Single Answer Question ECB stands for :Correct Answer External Commercial Borrowings Your Answer External Commercial Borrowings Multiple Choice Single Answer Question Deductions are authorized under which section? 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 Multiple Choice Single Answer 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 Multiple Choice Multiple 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 Remuneration under any award , Overtime , Travelling allowance Multiple Choice Multiple Answer 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 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 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 Multiple Choice Single Answer 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 Section 3 of wages act Every employer responsible for payment to employed persons Every employer responsible for payment to employed persons 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 Articles of Association are rules for ________. Correct Answer Internal management Your Answer Internal management 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 For which any application claim has already been presented , Direction of claim already given , Amount adjudged is not due to penalty Your Answer For which any application claim has already been presented , Direction of claim already given , Amount adjudged is not due to penalty Multiple Choice Single 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 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 The recommendations of audit committee relating to financial management shall be ________. Correct Answer Binding Your Answer Binding Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer Question In which case did the Bombay high court observe the general purpose of the act? Correct Answer Arvind mills ltd case Your Answer Arvind mills ltd case Select The Blank Question First AGM should be held within ________ from closure of financial year. Correct Answer 9 months Your Answer 18 months Multiple Choice Single Answer

Question Quorum required to hold a valid meeting can be prescribed in :Correct Answer Articles of Association Your Answer Articles of Association Select The Blank Question Private Company prohibits public to ________ for any shares. Correct Answer Subscribe Your Answer Subscribe Multiple Choice Single Answer Question Payment of wages act came into existence :Correct Answer To ensure regular and timely payment of wages to employed persons Your Answer To ensure regular and timely payment of wages to employed persons Match The Following Question Correct Answer Your Answer Interim Dividend Board of Directors Board of Directors Reduction of capital Special Resolution Special Resolution Appointment of Managing Director Ordinary Resolution ROC Accounting Standards National Advisory Committee National Advisory Committee Select The Blank Question For making alterations before ROC, ________ is required. Correct Answer Power of Attorney Your Answer Resolution authorising alteration Multiple Choice Multiple Answer 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 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 Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question When was the factories act passed? 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

Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question ECB stands for :-

Correct Answer External Commercial Borrowings Your Answer External Commercial Borrowings Multiple Choice Single Answer Question A person cannot be appointed as a director in more than :Correct Answer 20 companies Your Answer 20 companies Select The Blank Question Board has power to receive of notice of ________. Correct Answer Disclosure of interest Your Answer Disclosure of interest Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question Maturity period for USD 5 million scheme is :Correct Answer Three years Your Answer Three years

Multiple Choice Multiple 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 Multiple Choice Multiple Answer Question The register in respect of every investment or loan made, contains Correct Answer The amount, terms & conditions & purpose of investment or loan or security or guarantee , The date on which the investment or loan has been made , The name of body corporate 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 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 ________ is a scheduled employment carried out under the authority of central government. Correct Answer Competent authority

Your Answer Competent authority Multiple Choice Single Answer 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 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 AICTE Act Borrowings in Rupees Regulated ROI Regulated ROI NCD issue Public issue Public issue Multiple Choice Multiple Answer Question Board of directors have to take consent of general meeting for :Correct Answer Sale, lease or dispose of companys 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 companys property , Give time to repayment of debt due by director , Contribute to charitable funds exceeding Rs 50000/- or 5% of average net profits True/False Question Payment to a scheme of insurance of a post office is not a deduction. Correct Answer False Your Answer False True/False Question Company may have nominee director. Correct Answer True Your Answer True Multiple Choice Multiple 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 Amount by way of depreciation , Employment rebate or investment allowance , Direct tax Select The Blank Question All transactions of the ________ with the company shall be disclosed in the annual report.

Correct Answer Non executive chairman Your Answer Non executive chairman Multiple Choice Single Answer Question Which companies have to comply with the provisions of Clause 49 of listing agreement ? Correct Answer Listed Companies Your Answer Listed Companies Select The Blank Question The Forms 8 &13 should be filed in ________ to ragistrar of companies. Correct Answer Triplicate Your Answer Triplicate Multiple Choice Single Answer 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 Multiple Choice Multiple Answer Question Form No. 1 can be signed by :Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate Your Answer Chartered Accountant , Cost & Works Accountant , Advocate

True/False Question Financial year and calendar year are one and the same thing. Correct Answer False Your Answer False Multiple Choice Single Answer 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 Multiple Choice Single Answer Question Proxy form generally should be :Correct Answer Duly stamped and signed by all the joint-holders Your Answer Duly stamped and signed by all the joint-holders 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 Chairman 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 Multiple Choice Multiple Answer 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 Select The Blank Question ________ includes legal representative of deceased employer. Correct Answer Employer Your Answer Employer Multiple Choice Single Answer Question If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :Correct Answer Company Law Board Your Answer Company Law Board Multiple Choice Multiple Answer 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 Select The Blank Question The auditor has to give his report that the accounts of the company gives ________. Correct Answer True & Fair view Your Answer True & Fair view True/False Question After completion of Ordinary business other business is transacted at Extra ordinary General Meeting. Correct Answer False Your Answer False Multiple Choice Single Answer Question Maturity period for foreign currency credit by overseas suppliers is :Correct Answer More than 6 months & less 3 years Your Answer More than 6 months & less 3 years 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 Acquiring foreign security on gift is allowed. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Boards Report shall include :Correct Answer Dividend recommended , Financial position of the company , Amounts transferred to Reserves Your Answer Dividend recommended , Financial position of the company , Amounts transferred to Reserves Multiple Choice Multiple Answer Question What are the general provisions for punishment of other offences? Correct Answer Section 22 provides for the provision , Punishable with fine , Rs 500 fine Your Answer Section 22 provides for the provision , Punishable with fine , Rs 500 fine Select The Blank Question RBI in consultation with ________ regulates the capital transactions. Correct Answer Central govt. Your Answer Central govt. Multiple Choice Multiple Answer 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 True/False Question Wages does not include any gratuity payable on discharge. Correct Answer True Your Answer True Multiple Choice Single Answer Question In each board meeting director is paid by remuneration, which is known as :Correct Answer Sitting fees Your Answer Sitting fees