@ICMA Pakistan INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN MODEL PAPER BUSINESS LAWS & ETHICS [BLE-801, MODULE-3] - SEMESTER-8 « PAPER - “A” — MULTIPLE CHOICE QUESTIONS (MCQs) [COMPUTER BASED EXAMINATIONS (CBEs)] > [BLE-2] Commercial & Corporate Laws. > [BLE-3] Business Professional Ethics « PAPER - “B” — SHORT CASES/ SCENARIO [WRITTEN EXAMINATION] > [BLE-1] Taxation > [BLE-2] Commercial & Corporate Laws > [BLE-3] Business Professional Ethics « PAPER - “C” — PRACTICAL EXAMINATION [COMPUTER BASED EXAMINATIONS (CBEs)] > [BLE-1] Taxation Effective from September 2016 Examinations Examination Department2 fy ICOMPUTER BASED EXAMINATIONS (CBEs SpICMA BUSINESS LAWS & ETHICS [BLE-801, MODULE-3] Pakistan SEMESTER-6 MODEL PAPER MULTIPLE CHOICE QUESTIONS (MCQs) - PAPER - “A” Time Allowed: 01 Hour Maximum Marks: 30 INSTRUCTIONS TO THE EXAMINE! (Attempt all MCQs. (i) Each MCQ carries one (1) mark (ii) Use of non-programmable scientific calculators of any model is allowed (iv) Written Examination Short Cases/ Scenario - Paper - “B” and Computer Based Practical Examination = Paper ~ °C" for [BLE-1] Taxation ~ E-Fling| administered separately are integral parts of this Module-3 Examination. (v)_Choose the correct answers from the following. Marks IBLE:2] Commercial & Corporate Laws 20 1. Naveed, Saeed and Raza are partners in a firm for three years. The partners are not willing to get their firm registered. In such case what would be the penalties for non-registration of a firm? AO Afine of Rs.5,000 ‘An imprisonment of one year for all partners A fine and an imprisonment both B c D No penatties ooo 2. Under section 4 of the Single Member Companies Rules, 2003 change in status of single member company due to death of single member, either be wound up or be converted into private company for which, the nominee director shall transfer the shares in the name of the legal heirs of the single member within AO seven days ten days fifteen days B c D thirty days ooo 20. Form 29 is used to file return to registrar about: AO notice for change in the situation of registered office. BO _ passing of special resolution. CO consent of persons to act as director/ chief executive DO change of auditor. PCLE-MP-Moa-3 10f2 PTOMarks [BLE-3] Business Professional Ethics 10 1. Which of the following statements most accurately describe the nature of an ethical business? Ethical issues can be resolved by following the guidance of religious beliefs AO BO Ethical issues can be resolved if you do what you think is right CO Ethical issues are difficult because the results of a decision are hard to predict dO Ethical issues are difficult because all the choices may do some harm 2. Ifyou believe in making decisions for the good of most people, you can be described as which of following schools of thought? AO _Individuatism BO Human rights © © Utilitarianism DO Moral principles 10. Which of the following statements is not an accurate description of ethical relativism? © Ethical relativism is a convenient philosophy for managers working in many countries © Any gift to an employee is unacceptable as it may affect their judgement It is acceptable to give and take bribes if that is common practice in an industry or country © Morality depends on a particular society vom> THE END PCLE-MP-Moa-3 20f22 fy WRITTEN EXAMINATION i} I Cc M A BUSINESS LAWS & ETHICS [BLE-801, MODULE-3] = Pakistan ‘SEMESTER-8 MODEL PAPER Time Allowed: 01 Hour 15 Minutes Maximum Marks: INSTRUCTIONS TO THE EXAMINE (Write your Roll No. in the space provided above. (i) Answers must be neat, relevant and brief. Itis not necessary to maintain the sequence, (il) Use of non-programmable scientific calculators of any models allowed (iv) Read the instructions printed inside the top cover of answer script CAREFULLY before attempting the paper. (¥)_Inmarking the question paper, the examiners take into account clarity of exposition, logic of arguments, effective presentation, language and use of clear diagram chart, where appropriate, (vi) DONOT write your Name, Reg. No. or Roll No., or any irrelevant information inside the answer script (vil) Computer Based Multiple Choice Questions (MCQs) ~ Paper ~"A" and Computer Based Practical Examination — Paper — °C" for [BLE-1] Taxation administered separately are integral parts of this Module-3 Examination, (vii) Question Paper must be returned to invigilator before leaving the examination hall. EXAMINEES ARE ADVISED TO MANAGE SOLUTIONS/ ANSWERS WITHIN PROPOSED TIME Marks [BLE-1] Taxation Case #1 Proposed Time: 20 Min. | Total Marks : 10 Karvan Limited is a company registered under the Sales Tax Act, 1990. The company is engaged in the manufacturing, import and export of chemical products. Following activities were carried out by the company during the month of January 2015 Rs. ‘000° Purchases: Local: Raw materials from registered suppliers 800,000 Raw materials from non-registered suppliers 400,000 Imports: Invoice value (converted into Pak Rupees) 150,000 Customs duty Rs. 37,500 Value inclusive of customs duty 187,500 Federal excise duty 6,250 Manufacturing and other costs 220,000 ‘Supplies: Sales to registered customers 1400,000 Sales to non-registered persons (commercial! industrial customers) 600,000 Sales of exempted supplies 400,000 Exports 220,000 Additional Information: Sales tax of Rs.50,000, Rs.20,000 and Rs.16,000 was paid in cash on account of electricity, gas and telephone bills respectively, directly consumed for taxable activites. Required: In the light of the provisions of the Sales Tax Act, 1990, compute the net sales tax payable for the month of January 2015. Substantiate your answer with notes. PCLE-MP-Aoa-2 10f3 PTO (Note: The number of cases/ scenario and their marks may vary in the examination paper)[BLE-2] Commercial & Corporate Laws Case #2 Proposed Time: 15 Min. | Total Marks : 10 ‘Your law firm represents Masood Furnitures, an up and coming company that sells and installs office furniture. Until now, Masood Furitures has always sold furniture directly to customers solicited through direct mail. Now, however, Masood Furnitures has decided to try hiring salesmen. Masood Furnitures would ike to hire Promotional Private Limited's Salesman is to be its fst salesman Masood Furnitures wants you to draft a Sales Representative Agreement between Masood Furnitures and Promotional Private Limited's Salesman Masood Furnitures’ Director is the owner of Masood Furnitures. He has specified the following list of provisions that he wants included in the Agreement. Please note that the terms are not in any Particular order, 50 you will need to organize them within the contract: +. Salesman will have a minimum quote of 5% above the previous year’s sales in his territory and a goal of 15% above that amount. Salesman will also be required to work full-time selling and promoting Masood Fumitures’ product, fulfiling the present and future needs of Masood Furnitures’ customers in his territory, and expanding Masood Fumitures’ client base. 2+ Salesmen’s’ commission will be 10% of the net price of goods or installation services. However, he will not be entitled to a commission on any freight charges paid by the customer. 3 Salesman must agree not to handle the products of any of Masood Fumitures’ competitors during the term of the agreement 4- The agreement should have a one-year term starting January 1, 2016. it should be automatically renewable unless either party gives notice of an election not to renew at least 30 days prior to termination. On termination of the agreement, Salesman should retum all catalogs, price lists, and samples to Masood Furitures 5- Masood Fumitures will bill all of Salesman customers directly, and retains the right to approve credit and set credit terms Required: Masood Fumitures’ Directors has asked you, as Masood Fumitures’ attomey, to draft a Sales Representative Agreement that includes all these provisions. Case #3 Proposed Time: 20 Min. | Total Marks : 10 You have been working as a Corporate Consultant for Mis. Carlton Limited which is a public limited company, established in 1983. The Board of Directors is seeking your advice in respect of the following matter: The financial year of the company ended on June 30, 2013 and its annual general meeting was scheduled to be held on 25th October, 2013 at 12:30 p.m. There were 8 ordinary shareholders present including 3 joint shareholders, Mr. Laeeg, Mr. Siraj and Mr. Tajammul (all ordinary shareholders representing 25% voting power including joint shareholders) and two preference shareholders holding 10% preference shares capital. The number of shareholders tumed up in the next 10 minutes and the meeting started at 12:45 p.m., after meeting quorum requirements. The matter relating to increase in authorized capital was debated threadbare and it was decided to camry out a voting by show of hands. Shareholders raised a number of objections during the meeting and the Board of Directors of the company request you to explain the legal provisions to the shareholders for the following objections: Required: {a) Some of the shareholders said that since the meeting was not started on scheduled time therefore this is invalid. The shareholders who were present in time objected that they were present in time and should have been considered as quorum. Explain the legal position with Tespect to shareholder's objection and also mention the Law relating to adjournment of AGM ‘and quorum requirements with particular reference to presence of preference shareholders and joint holders. PCLE-MP-Moa-2 20f3 (Note: The number of cases/ scenario and their marks may vary in the examination paper) Marks(b) Mr, Laeeq, Mr. Siraj and Mr. Tajammul, three brothers and joint shareholders of the company were also present in the meeting. Mr. Siraj objected that why the notice of the meeting was sent to only one of them ie., Mr, Laeeq only and not to all three brothers including himself, Mr. Laeeq and Mr. Tajammul? (0) There was a conflict between Mr. Laeeg, Mr. Siraj and Mr. Tajammul as to whose vote would be considered for show of hand. Would your answer be different, if a poll was demanded instead of voting by show of hands? [BLE-3] Business Professional Ethics Case #4 Proposed Time: 15 Min. | Total Marks : 10 A junior member of staff has just returned to work after taking special leave to care for her elderly mother. For financial reasons she needs to work fulltime, She has been having difficulties with her mother’s home care arrangements, causing her to miss a number of team meetings (which usually take place at the beginning of each day) and to leave work early. She is very competent in her work but her absences are putting pressure on her and her overworked colleagues, You are her manager, and you are aware that the flow of work through the practice is coming under pressure. One of her male colleagues is beginning to make comments such as “a woman's place is in the home”, and is undermining her at every opportunity, putting her under even greater stress. Required: Considering the issues identify a solution which enables you to demonstrate that you are behaving professionally and attempting to resolve the difficulties faced by the junior member of staff. THE END PCLE-MP-Moa-2 30f3 (Note: The number of cases/ scenario and their marks may vary in the examination paper) MarksICMA ICOMPUTER BASED EXAMINATIONS (CBEs BUSINESS LAWS & ETHICS [BLE-801, MODULE-3] Pakistan SEMESTER-8 MODEL PAPER PRACTICAL EXAMINATION - PAPER - “C” (Write your Roll No. in the space provided above (il) Taking the question paper out constiites cheating and wil invalidate candidate's examination and it result (ii) Itis candidates’ responsibilty to ensure printing of el their work and handing it over tothe invgilator. (iv) Examines are not alowed to write their Names, Registration Nos., Roll Nos,, Name of Centre or any other information on the solution of Practical Sheats. Failure to comply with the instructions will invalidate the result. (¥) Question paper must be attached withthe solution printout. No marks) will be alloted if question paper is not attached with solution printout (vi) Computer Based Multiple Choice Questions (MCQs) - Paper ~ "A" and Written Examination Short Cases/ ‘Scenario ~ Paper ~ "8" administered separately are integral parts of this Module-3 Examination, (ii) Question Paper must be returned to Invigilator before leaving the examination hall. Time Allowed: 45 Minutes Maximum Marks: 30 Roll No. Marks Question: Mr. Abid was working as Assistant Manager Marketing in ICR Private Limited for three years. During the tax year 2016, he left the company and has got another very good opportunity in Daxo Pharma as a Marketing Manager. Since, he has to file income tax return for the tax year 2016, he is confused about calculation of his taxable income and tax liability because he received various perks and benefits from previous and current employers during the year. Suppose you are Mr. Abid’s Tax Consultant and he has provided you following information for calculation of his taxable income and tax liabilty for the tax year 2016: Rupees Perks and benefits received from IGR Private Limited: Basic salary (per month) 40,000 Usiity allowance (per month) 2,000 Conveyance allowance (per month) 3,000 Contribution toward recognized provident fund (per month) 5,000 (including equal contribution by the employer) Bonus received in December 2015 equal to 50% of one month basic salary 20,000 1al Settlement on Leaving of ICR Private Limited: Withdrawal from recognized provident fund 300,000 Gratuity received 130,000 (the gratuity fund was not approved by the Commissioner Inland Revenue) Perks and benefits received from Daxo Pharma: Basic salary (per month) 50,000 House rent allowance (per month) 20,000 Entertainment allowance (per month) 4,500 Yearly re-imbursement of medical expense allowed to Rs.40,000 out of which Rs. 10,000 (vouchers verified) have been ciaimed by Mr. Abid during the year. The company has provided a wholly maintained 1000cc car to Mr. Abid for his personal and official use, The cost of the car is Rs, 800,000. PCLE-MPAtod-3 10f2 PTOMarks Other Information: + Mr, Abid left ICR Private Limited on March 31, 2016 and joined Daxo Pharma on May 1, 2016. ‘+ Apart from his employment, he has also been working as a visiting faculty in a professional institute. He has also received honorarium of Rs. 58,500 (net of 10% tax withheld) from such institute during the year. + Almost 15 months ago, Mr. Abid had acquired 1,000 shares from Alpha Private Limited. He received capital gain of Rs. 30,000 on sale of such shares. + Bank deducted tax at source of Rs. 900 on cash withdrawals, + Tax at source of Rs. 4,000 has been deducted by ICR Private Limited while no tax has been deducted by Daxo Pharma from Mr. Abid's salary. Required: Type the data in relevant fields and compute Mr. Abid's taxable income and tax payable! refundable for the tax year 2016. 30 ‘THE END PCLE-MPAtod-3 20f2