SECRETARIAL PRACTICE (52) Time : 3 Hrs, (4 Pages) ‘Max. Marks: 80 Note: (1) All questions are compulsory. (2) Figures to the right indicate full marks for the questions. (3) Figures to the left indicate question numbers. (4) Answer to every question must be started on a new page. Q. 1. (A) Select the correct answer from the options given below and rewrite the sentences : (3) [20] a is related to money and money management. (a) Production _(b) Marketing (c) Finance (2) Secured debentures must be redeemed within from the date of its issue. (a) 10 days (b) 10 years (©) 15 years (3) India has a depository system. (a) sole (b) muti (o)single (4) Dividend is to be paid to the shareholders within from the date of declaration. (a) 30 days (b) 40 days (©) 20 days (5) Accumulated dividend is, paid to preference shares, (a) redeemable (b) cumulative (©)convertible of7fa]a Page 1 PTO. (9) (B) Match the pairs. Group ‘A’ Group ‘B’(B) Match the pairs. (5) Group ‘A’ Group ‘B’ (a) Investment in (1) Deals with acquisition debenture. and use of capital (b) Financial market (2) Must inform stock exchange about dividend declaration. (c)_ Price of shares (3). Trading of financial mentioned in securities. prospectus @) Corporate finance (4) Safe and secured investment. (©) Listed company (9) Must inform government about dividend declaration (©) Fixed price issue method. (7) Risky investment (8) Trading of commodities (9) Deals with acquisition and use of assets. (10) Book- Building Method. (©) State whether the following statements are True or False: (5) (1) Dividend can be paid out of capital. (2) Deposit can be accepted fora maximum of 6 months. (3) Depository bank stores the shares on behalf of GDR holder. (4) Securities market is an unorganised market place in India, |~ (5) Bonus shares are fully paid up shares. (D) Correct the underlined word and rewrite the following sentences : (5) (1) Depositors are owners of the company. @ Retained earnings is an external source of finance. (3) To rate its debentures, a company appoints underwriters. 41 Page 2 (4) Companies sell fresh shares for the first time to the ary markel.(4 Companies sell fresh shares for the first time to the public in secondary market, (5) Preference shareholders get dividend from residual profits, Q. 2. Explain the following terms / concepts (Any FOUR) : 18) (1). Production Cycle (2) Overdraft (3) Employee Stock Purchase Scheme (ESPS) (4) Depository Participant (DP) (5). Rate of Dividend (©) Rights Issue Q. 3. Study the following cases / situations and express your [6] opinion (Any TWO): (1) Sunflower limited company proposes to issue debentures to the public to raise funds. After discussions, the Board of Directors have decided to issue secured, redeemable, non- convertible debentures with a tenure of ten years. Please advise the Board on following matters : (a) Should the company appoint Debenture Trustee? (b) Should the company create a charge on its assets? (©) Can the tenure of debentures be less than ten years? (2) ‘ABC? Company Ltd. is an eligible public company as per the Companies Act, 2013, with reference to accepting public deposits : (@) Can the company accept deposits in joint names? (b) Can the company accept deposits from its members? (c) Can the company accept secured deposits? (3). Joy Ltd. Company is newly incorporated company. It wants to raise capital for the first time by issuing equity shares : (@) Should it go to primary market or secondary market to issue its shares? 0) 7}4)1 Page 3 PTO.Q6 (b) Should it offer its shares through public offer or rights issue? (©) What will be the issue of equity shares by Joy Ltd. Co, called as, ~ IPO or FPO? Distinguish between the following (Any THREE) : (1). Fixed capital and Working capital (2) Transfer of shares and Transmission of shares (3) Dematerialization and Rematerialization (4) Primary market and Secondary market . Answer in brief (Any TWO) : (1). State the features of bond. 2). Explain any four advantages of depository system to investors. (3) Explain the features of interest. Justify the following statements (Any TWO) : (1) The Board of Directors can refuse transfer of shares. (2) The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. (3) Unpaid dividend cannot be used by the company. (4) A company can issue duplicate share certificate. Attempt the following (Any TWO) : (1) Write a letter to the member for the payment of interim dividend electronically. (2). Write a letter to the debentureholder regarding payment of interest through interest warrant. (3). Draft a letter of thanks to the depositor of a company. . Answer the following questions (Any ONE) : (1) What is preference shares? Explain its types. (2) Explain the provisions of Companies Act, 2013 for issue of debentures, ooo 4[1] Page 4 (12) (8) [8] [0]ee) a Time : 3 Hes. Max. Marks : 80 (1) All questions are compulsory (2) Figures to the right indicate full marks for the questions (3) Figures to the left indicate question numbers (4) Answer to every question must be started on a new page. Q.1. (A) Complete the sentences : (1) The oldest Stock Exchange in India is the (2) The finance needed by business organisation is termed as _ (3) Dividend is paid to (4) The Indian Depository Act was passed in the year (S) The obligatory payment made by company to its creditors is called as Match the correct pairs of words from group ‘A’ and group ‘B’ : Group ‘A’ Group ‘B* (a) Fixed Capital (1) Offered to existing (b) ESPs equity shareholders (c) Interim Dividend 2) Custodian of securities (d) Depository in electronic form 5} B&424e T &, ee eC oe asaj SPs) Pie La ) Q) 6) @ (C) Corre sentences’: (4) (5) (6) of investors in securitics market Fixed assets Decided and declared by the Board of Directors Offered to existing employees To protect interest of companies in securities market Problems faced in electronic mode Decided by Board; declared by members (10) Fixed liabilities the underlined word and rewrite the following 6) Bond is a source of short term finance. In primary market, already existing securities are traded. Securities are fungible in physical mode. Preference shareholders get profits. dividend from residual In Money market, the instruments traded have maturity period of more than one year. (D) Find the odd one : (5) Final dividend, Interim dividend, Interest. Bonus shares, Rights shares, ESOS, Dividend, Depositor, Deposit receipt. DP, BO, State Government. Debenture Trustees, Trust Deed, Shareholder, Page 2 im 2B we a a eC oe as‘ cepts (Any FOUR) [3] Q. (6) Stock Exchang Q. 3. Study the following case / situation and express your opinion (6) (Any TWO) ) Vi Ltd. Company plans to raise % 10 crores by issui debentures. The Board of Directors have some queries. Please advise them on the following {@Canithe company issue convertible debentures? (>) Can they issue irredeemable debentures? ©) As the company is offering debentures to its members, can such debentures have normal voting rights? 2) SUN Pvt. Ltd. Company wants to raise funds through deposits (a) Can the company accept deposits from the public? (b) Which document should the company issue to invite deposits? (c) What is the maximum period for which company can accept deposits? (3) Mr. Amav holds 100 shares of ‘Peculiar Co. Ltd.” in physical mode and wishes to convert the same into electronic mode : (a) Mr. Arnay holds a Savings Bank Account with CFDH Bank Lid. Can he deposit his shares in this account for demat? peti: — {b) What type of account is needed for the same? ‘As it RBI which will be the custodian of shares of Mr. a ae a Se ee eeseee aOa)\a (a) Equity shares and Preference shares. 2) Transfer of shares and Transmission of shares. (8) Dividend and Interest (@) Primary market and Secondary market. . Answer the following questions in brief (Any TWO) : (1) State any four factors affecting fixed capital requirement. (2) State any four provisions of Companies Act 2013 for issue of debentures. (3) Explain any four advantages of Depository System to investors. ;. Justify the following statements (Any TWO) : (2) Bondholder is creditor of the company. @) Accompany has to create charge on its assets for issuing secured debentures (3). Approval of members is not needed for interim dividend. (4) The Securities and Exchange Board of India (SEBI) is the regulator for securities market in India. Attempt the following (Any TWO) : (1) Write a letter to the shareholder regarding issue of bonus shares, (2) Draft a letter to debentureholder informing him/her about redemption of debentures, 3) Write a letter to depositor regarding renewal of his/her deposit. Attempt the following (Any ONE) : (1) Whatis debenture ? Discuss the different types of debentures. (2) Explain the statutory provisions for allotment of shares. ooo B24 oO T &, Se ee eesSECRETARIAL PRACTICE Time: 3 Houre (A) Select the correct answer from the opto below and rewrite the sentences: (2) Company has to pay___ to government. (0) toxes (© interest (©) dividend (2) shores ore issued free OF cost to existing ‘equity shareholders © equity © Rohe (8) is oproofo tte of shores. (© Register of member © Shore certificate (© Letter of Allotment Debenture Copital is company. (©) owned © permanent (© borrowed Dividend is paid frst to. (© equity () preference (® State whether the following statements ere Tear ‘ond money. ns given (20) Gyro elect a @ @ @ © © (9 Bonus Oy copital of @ shareholders o © jeferred is related to money management. Share certificate is issued for portly or fully paid up Government company can collect deposits from its members. Depositors are given voting rights Primary market is olso known os new issue market © to @ ® ® © (©) Find the odd one: (2) Face volue, Market value, Redemption value @) Convertible debentures, Imedeemable debentures, Secured debentures. Dividend warrant, interest warrant, Demat. (4) DP,RBI. Depository. (5) Final dividend, Interim dividend, Interest. (©) Select the correct option from the bracket: ® @ Group ‘A’ Group's’ © Equity shores a) ©) Operation oflaw (2) © - (3) Debenture certificate @ Dematerialization (4) © — India. HSC — FEBRUARY 2023 {issued wit clectronic mode ange. Transmission of hares} [Link] the following terms] concepts: (Any Max Mare, hin 6 monthé of allotment. Phy Fluctuating rate of dividend, Bombay, Working Capital Overdrofe rightsissve Depository Participant (OP) Secondary Market Stock Exchange 23. study the following cases/situations and ‘your opinion. (Any TWO) (@) Sai Ltd Company is newly incorporated company and wants to raise capitol by ‘equity shares to the public. The Board of ‘re considering various options for this Advise Board on the following matters: (@) What should the company offer IPO or Foy {©) Can the company offer Bonus shares to racy copital? (9 Con the company enter into. Underartng ‘Agreement? Me Kishore wants to demat his 25 shares of He ‘Company Ltd. bearing certificate no. 100 ang distinctive no. 76-100: (©) Which form is he required to fil os a writen request to the DP-DRF or RRF? (©) Does he have to fil instrument of transfer ithe ‘wishes to transfer the same, after demat? (© Does he have to quote certificate number ong distinctive number, if he wishes to transfer hs shores after itisin demat form? Diamond Company Limited is considering t declare interim Dividend (@in how many days of dectoration it shoud transfer the funds to Dividend Account? (©) Inhow mony daysit must pay itto Shareholder? (© Con the Board of Directors dectare Inteim Dividend out of capital? (5) [Link] between the following: (Any THREE) [12] (2) Fixed copitol and Working capital @) Shares and Debentures (@) Initial Public Offer (PO) and Further Public Offer (FPO). (@)_ Final Dividend and interim Dividend. (6) Oldest stock exchange in Q-5: Answer in brief: (Any TWO) (2) State the contents of share certificate. @Secretarial Practice xpain four edvantages of deposivory system for Q.7, Attempt the ‘oninvestor. (1) Write a te pos a letter to grate the functions of SEB), [10] the for nen member forthe issue of share stfy the following statements: (Any TWO) (8) (2) bran letter to re holder informing him pany can issue ‘only certin, woes ap about redemption of debenture nore @) ofa oer thedepostor regarding repeymene (9) Alcompanies conn cece depos fom publ aes jae Q.8. Answer the following eae sehaee® get last priority in Payment of (@) Whatieon guia dividend. i Copital market is useful for corporate sector. @ ean the sta questions: (Any ONE) [2] hare? Explain its features, tutory provisions for allotment ofCRETARIAL PRACTICE SC am FEBRUARY 2024 10S col she correctanswer from the options given geet th 0) jandrewrite ye sentences: tao, OCA the under Mox Marks: 20 iets ‘management of Garo Following sentences: = MOTH and rewrite the fecomeons. () Owned cootat ® ‘reneto production 2) Boo er maaray coat marketing ’ Feet? offering of shores to the publi for the ny con accept deposits from public, ©) Dvidendis “= @ imu Fr. months. ESS aiteare deer ees fanine © twelve Operates eer ee ; A sock meres onimporantcontiuert taney ; fh company con issue convertible @ 2-Explain the flows © eventures. wing terms] concepts: (Any FOUR) (© portly or fully i Fad @ , pony ae eee en. company. od (4) Depository system —_ (8) Secondary market, Js @ retum paid to creditors by the as a ia . Study the following case/situation and a. opinion. (Any TWO) Bane @) Violet Ltd. compony plons to raise € 10 cores bu issuing debentures. The Board of Directors have some queries Please advise them onthe following (©) Can they issue convertible debentures? (b) As the company is offering debentures to its members, can such debentures have normal voting rights? (©) Copita rcised by issuing debentures wil be Ovined Capital or Borrowed Capita? (@)_Mr.Satish holds 100 shores of Raj Company Lx in physical mode and wishes to convert the same ito electronic mode (@) Me. Satish holds a Sovings Bank Account with i (permanent /(7) Decided by Board and deciored SBl by members Can he deposit his shares in this account for demat? {t) What type of accounts needed forthe some? {6 Isitthe RBI which willbe the custodianof shores ‘of Mr. Satish after démating? ® —_@) GOLDCo tte. declares a dividend of 10: per shore for F¥.2019-2020 (Find the odd one: earnings 1, Bs () Debenture, Publi Deposit, Retained @ Bonus shares, Rights shores, Employees Stock (@) Is company under default if dividend wos pot Option Scheme (ESOS) paid within 30 days ofits decoration? any, Non-Eligible public company. {@)Is company right in transferring. the unpaid P fdvidendto its Debenture Reserve Account? ef {@ Does the company have toto 3 ee Paper, Further ‘of unpaid dividend to IEPF after 30 days! (®) Private Placement, Commerce Public Offer (FPO)pe tamere ‘secured debentures, mee VOrrBT St waa “ _ ®Ans @