Chapter-wise Q&A | CS Executive — Paper 3, Group 1 | ICSI New Syllabus
Q. X is planning to start a mobile based and web based business. In selection of suitable form of a business organisation, ‘degree of control and management’ plays a significant role. Explain how this factor affects the choice of form of organisation. (Dec, 20 – 5 Marks)
Q. ‘The degree of control and management that an entrepreneur desires to have over business affects the choice of form of organization’. Explain. (Dec, 24 – 3 Marks) (New Syllabus)
Q. Comment on the following :
Requirement of Capital affects the choice of suitable form of a business organization. (June, 19 – 4 Marks)
Q. Sumit Bhasin has an expertise in the field of Modular Kitchen designing, he possesses adequate education too in this field. Now in order to start his venture, he wants to consult a Company Secretary for getting aware of various modes of organization and to select the best mode keeping in view their merits and demerits. As a Company Secretary, make Sumit Bhasin acquainted with available modes of organization while briefing the merits and demerits of each. (Dec, 22 – 5 Marks)
Q1. Write down the characteristics of a private company under the Companies Act, 2013 as described by K to R. (Dec, 23 - 3 marks) (New Syllabus)
Q. Karan and Rajdeep two friends decided to start a business of Biryani Chain, it’s a start up with some blend of technology for which they aim to collect funding from Venture Capitalists. While Karan is of the opinion to incorporate Limited Liability partnership, Rajdeep wants to go ahead with formation of Private Limited Company. As a Professional Consultant, you are required to advise on the basis of merits of both the proposals as which type of organization is most suitable as per the requirement ? (Dec, 23 – 5 Marks)
Q. Explain the Doctrine of Alter Ego. (June, 23 – 4 Marks)
Q. TP Private Ltd. Company registered under the Companies Act, 2013 with paid up capital of ₹35 lakh and turnover of ₹2.5 crore. Explain the meaning of ‘Small Company’ and examine the following in accordance with the provision of the Companies Act, 2013 :
Q. If Surya Pvt. Ltd. having paid up share capital of ₹ 45 Lakhs and annual Turnover of ₹185 Lacs is a wholly owned subsidiary of Hima Ltd. a listed Company. Can Surya Pvt. Ltd. be called a Small Company? Explain. (Dec, 21 – 2 Marks)
Q. SDM Pvt. Ltd. is having paid up share capital of ₹ 45 Lakh and annual turnover of ₹ 185 Lakh. It is a wholly owned subsidiary of K Ltd. a listed company. Can SDM Pvt. Ltd. be called a Small Company as per the provisions of the Companies Act, 2013. (Dec, 22 – 4 Marks)
Q. Pratham Food Trading Pvt. Ltd. has a paid up capital of ₹ 50 lakh and turnover of ₹1.20 crore in the last financial year 2017-18. The company has filed its annual return for the relevant financial year signed by only one director of the company. With reference to the provisions of the Companies Act. 2013, analytically comment whether the act of the company is in order ? (Dec,18 – 4 Marks)
Q. Comment on the following :
Q. Axar is in plant research and he has invented a process for extracting bio-fuel from certain plants, now he is proposing to commercialize his invention by promoting a One Person Company (OPC). But he proposes his name and his wife name as directors of the Company. As a Company Secretary clarify Axar on number of shareholders and directors OPC can have. Also brief him the provisions on Board, Annual General Meeting, signing of Financial statements, Board’s Report and Annual Return. (Dec, 19– 5 Marks)
Q. Raman is an Indian Citizen, and his stay in India during the immediately preceding financial year is for 130 days. He appoints Sanjay, a foreign citizen, as his nominee, who has stayed in India for 125 days during the immediately preceding financial year. Is Raman eligible to incorporate a One-Person Company (OPC) ? If yes, can he give the name of Sanjay in the Memorandum of Association as his nominee ? Justify your answers with relevant provisions of the Companies Act, 2013. (Dec, 22 – 5 Marks)
Q. Explain the characteristics of a Nidhi Company under the Companies Act, 2013 and the Nidhi Rules, 2014. (Dec, 23 - 3 marks) (New Syllabus)
Q. What restrictions have been introduced concerning the use of the term “Nidhi Limited” in a company’s name under the Nidhi (Amendment) Rules, 2024? (June, 25 – 3 Marks)
Q. What are the benefits of incorporating a Nidhi Company? (Dec, 24 – 3 Marks) (New Syllabus)
Q. Define the term ‘Net Owned Fund’ (Dec, 20 – 4 Marks)
Q. Shree Vishnu Permanent Fund Limited, is a Nidhi Company incorporated on 17th August, 2023. The promoters being the new business entrant is not aware to file any kind of declaration. Hence the management seeks your advice to explain what form to be filed as Declaration of Nidhi Company and also explain the time limit of such filing. Further explain the consequences of non-filing of such declaration. (Dec, 23 – 4 Marks)
Q. ‘Every Nidhi Company shall have to ensure certain compliance requirements within one year of incorporation. Enumerate those compliance requirements to be ensured within one year of incorporation. (Dec, 23 – 4 Marks)
Q. Mahesh Nidhi Limited was incorporated on 30th September, 2020. The Board of Directors seek your advice about the compliances need to be done in respect of each of the following :
Q. Ragavi and her six more relatives & friends want to incorporate a Nidhi Company. They seek your advice on the following issues with respect to the formation of company :
Q. Nidhi Companies can provide loans to its members’ subject to certain limits as per Nidhi Rules, 2014. Rakesh being a member of a Nidhi Company wants to know the limits mentioned under Nidhi Rules, 2014 and also seek your advice whether a second loan can be granted within limits specified, if 1st loan is overdue, outstanding and remains unpaid. (June, 21 – 5 Marks)
Q. Alok Nidhi Ltd., a Nidhi Company, desires to appoint M as the Director of the company. M has been convicted of an offence involving moral turpitude and sentenced to imprisonment for a period of six months, 4 years ago. Alok Nidhi Ltd. seeks your advice for appointment of M as Director of the Company. Referring the provisions for appointment of Directors in a Nidhi Company under Nidhi Rules, 2014, advise Alok Nidhi Ltd. (Dec, 23 – 5 Marks)
Q. Mudra Nidhi Limited, a Chennai based company, wants to acquire another company Prakrit Private Limited through change in management, can it do so ? Will your answer change if it wants to acquire Prakrit Private Limited by way of purchase of securities ? (Dec, 23 – 4 Marks)
Q. Ramesh wishes to form a Nidhi Company with a minimum paid-up equity share capital of ₹12 lakh. Ramesh is seeking your guidance regarding the general limitations and prohibitions put in place for Nidhi Companies. (Dec, 22 – 5 Marks)
Q. State the consequences in each of the following cases giving reasons for your answers:
Q. 43% of the paid up share capital of V4C Ltd. is held by the Central Government and 8% is held by the Life Insurance Corporation of India and Unit Trust of India (Public Institutions). Analyze the definition of ‘Government Company’ under the provisions of the Companies Act, 2013 and decide whether V4C Ltd. is a Government Company. (Dec, 18 – 5 Marks)
Q. Luv Ltd. has entered into a contract with Kush Ltd. by which Kush Ltd. will control 22% of the sale and disposal of the output of Luv Ltd. Enumerate the nature of relationship between both Companies. (Dec, 21 – 3 Marks)
Q. The paid up share capital of PKA India Pvt. Ltd. is ₹20 crore, consisting of 150 lakh fully paid up Equity Shares of ₹10 each, and 50 lakh fully paid up Cumulative Preference Shares of ₹10 each. PKA India Capital Pvt. Ltd. and PKA India Tele Services Pvt. Ltd. are holding 55 lakh and 25 lakh Equity Shares respectively in PKA India Pvt. Ltd.
Q. Aniket wishes to incorporate a company under section 8 of the Companies Act, 2013 for the purpose of promotion of education, research and social welfare. He approaches you to seek your advice on eligibility to apply for section 8 company license. Advise Aniket. (Dec, 23 - 3 marks) (New Syllabus)
Q. BrightFuture Foundation wants to apply for section 8 company license while engaging in commercial activities, such as offering paid online courses, to fund its charitable activities. How would these commercial activities align with the eligibility criteria for a section 8 company, which focuses on promoting charitable objectives over profit-making ventures? (Dec, 24 – 3 Marks) (New Syllabus)
Q2. Describe the common reasons on the basis of which RoC, Delhi has rejected the name reservation application of R with the proposed name, R Holding Pvt. Ltd. (Dec, 23 - 3 marks) (New Syllabus)
Q. Amit, originally from India, relocated to Germany in search of better career opportunities after completing his education. Over the next three decades, he worked diligently, building a successful career, and eventually acquired German citizenship. Despite his professional success abroad, Amit always felt a strong emotional connection to India and frequently thought about ways to contribute to his homeland in a meaningful way. His sense of social responsibility grew over time, and he envisioned using his wealth and experience to improve the lives of underprivileged people in India.
Q. Anil wants to incorporate a company in the name ‘National Electricity Corporation Limited’. However, the application was rejected with the reason that the name is identical to the name of an existing company i.e., ‘Rashtriya Vidyut Nigam Limited’. Anil objects to this rejection.
Q. Gupta Publishers Ltd. has been incorporated recently and the Articles of Association of the company contain the provisions for entrenchment under section 5(3) of the Companies Act, 2013. Elucidate the provisions of entrenchment under the Companies Act, 2013. (June, 23 – 4 Marks)
Q. KC Pvt., Ltd. has been incorporated recently under the Companies Act, 2013. The Directors of KC Pvt. Ltd. seeks your advice on the requirement in context of ‘publication of name and address of the company’. Referring the provisions of section 12(3) of the Companies Act, 2013, advise KC Pvt. Ltd. (Dec, 23 – 5 Marks)
Q. Rakesh and Vishesh are in the process of forming a new company under the name of “Money Grow Private Limited”. The Company would be an NBFC. While drafting the object clause in Memorandum, a clause related to power to sell and dispose of the whole of a company’s undertaking was not mentioned. Later the management argues that this power is implied power of Board and need not be mentioned separately. Is management right in its contention ? Also mention powers which are not considered as “Implied Powers.” (Dec, 23 – 4 Marks)
Q. Plastocare Limited, a Public Limited Company wanted to appoint Ashish Kothari as its Managing Director, for which a notice of EGM has been sent to all the members. However, the notice did not contain any information about the interest of other Directors in such appointment. Does this missing information render the notice as invalid ? Will your answer be changed in case the company is a Govt company ? (Dec, 23 – 4 Marks)
Q. Sanjiv Shukla plans to incorporate a company in Karnataka with 2 other persons. But none of the promoters have their DIN. Explain what are various services that are offered through integrated SPICe+ form ? (Dec, 23 – 3 Marks)
Q. Santosh Agarwal is a director in Elon Dairy Limited and also in its holding company Puriton Dairy Private Limited. He wants to acquire some assets of its holding company for a consideration other than cash. Explain the related provision for the non-cash acquisition. (Dec, 23 – 3 Marks)
Q. What are the duties of Designated Partner of LLP ? (Dec, 20 – 4 Marks)
Q. Prabhat is proposing to start a new business wants to know from you the mandatory annual compliances for an LLP and a partnership firm. (Dec, 19 – 3 Marks)
Q. As a practicing Company Secretary, advise your client regarding the annual compliance requirements to be followed by LLP. (Dec, 18 – 5 Marks)
Q. The Financial Statements of Limited Liability partnership are not mandatorily required to be audited by a Chartered Accountant. (June, 19 – 4 Marks)
Q. ABC LLP has its registered office in Kanpur (U.P.). For better administrative convenience, the LLP wants to shift its registered office from Kanpur to NCT of Delhi. Advise the LLP regarding the various formalities which need to be complied with for shifting its registered office from Kanpur to NCT of Delhi under Limited Liability Partnership Act, 2008. (June, 23 - 4 marks)
Q. XYZ Trading LLP registered under LLP Act, 2008 wants to change its name to PQR Solutions LLP. Explain the procedure to be followed by XYZ Trading LLP for changing its name under the provisions of LLP Act, 2008. (Dec, 21 – 4 Marks)
Q. A, B and C are the partners in the partnership firm registered under the Partnership Act, 1932 in the name of ABC Traders. Considering the benefits available to Limited Liability Partnership (LLP) under the Limited Liability Partnership Act, 2008, the partnership firm is converted into LLP with the name ABC LLP and the same is registered. The Department of State Revenue issues a notice to the LLP to pay stamp duty and registration charges for transferring the assets of the erstwhile partnership firm to LLP. It is contended by the Department that the LLP is a separate distinct entity from that of its partners and hence the conversion amounts to change of legal rights. In the light of the decided case law, examine the validity of the contention of the Department of State Revenue. (Dec, 23 - 3 marks) (New Syllabus)
Q. Aryan & Aarav, an LLP having turnover of `45 lakh and contribution of the partners exceeding ₹ 30 lakh in F.Y. 2018-19 is seeking your advice in the following matters:
Q. A and B are the two experienced professionals in the Information Technology (IT) industry.
Q. MNC LLP, a consulting firm, faced serious allegations of financial misconduct involving a senior partner, Kumar, who was accused of falsifying financial reports. Employees felt unsafe reporting these concerns internally until Priya, a junior consultant, decided to blow the whistle. She submitted a formal complaint along with evidence to the Whistleblower Committee, citing Section 31(1) of the Limited Liability Partnership Act, which protects whistleblowers from retaliation.
Q. Divakar and Raina, two individuals, have established a Limited Liability Partnership (LLP) to conduct business in computer hardware and peripherals at Nehru Place, New Delhi. They are now seeking guidance on drafting the LLP agreement. Advise them on the contents that should be included in the LLP agreement. (June, 25 – 3 Marks)
Q. RICE group of companies wants to establish an SPV. It has 4 companies and 2 LLPs in the group. The management is in dilemma whether to use a company or LLP as an SPV. As an experienced professional in Business Collaboration matter, advise the management as to which form of organization would be best to register as an SPV? (Dec, 23 – 4 Marks)
Q. Harischander wants to start a manufacturing business but he is not able to decide on the form of business (Type of Business Entity). He seeks your advice about the legal implications and requirements for the various business forms in India on the basis of the following parameters:
Q. ‘Start up India’ initiative has been started by Government of India for creating conducive environment for start-ups in India. Explain the pre-conditions for determining an entity as a start up venture (Dec, 18 – 4 Marks)
Q. Explain the concept of Life Cycle of Start-up. (Dec, 24 – 3 Marks) (New Syllabus)
Q. Pawan incorporated a Private Ltd. Company in the year 2016 for carrying on the business of supplying freshly chopped vegetables to various food chains in and around New Delhi NCR. He wants his entity to be recognised as a start-up. Advise the process to be followed by him for recognition of his company as a start-up. (Dec, 19 – 4 Marks)
Q. XYZ Solutions Pvt. Ltd. is a newly established technology company based in Bengaluru, India. The company specializes in developing AI-powered software solutions for healthcare providers. As part of its growth trajectory, XYZ Solutions Pvt. Ltd. is exploring the benefits available to startups under the Startup India Program. Advise the company about the benefits given to entrepreneurs establishing startups. (June, 24 - 3 marks) (New Syllabus)
Q. Radha Furnishing Pvt. Ltd. a Start-up Company wants to issue sweat equity shares to its employees. Is there any provision regarding it ? Explain. (Dec, 22 – 4 Marks)
Q. ABC Private Ltd., a ‘start-up’ company, received an amount of `25 lakh in a single tranche from an investor by way of a Note, convertible into equity shares (convertible after 3 years but within 5 years from the date of issue). CFO of the Company was of the view that the said amount is not a deposit. In the light of the statutory provisions, explain whether the view of the CFO is correct ? (June, 19 – 5 Marks)
Q. “While every startup has its unique journey to becoming a unicorn, the minimum and maximum time taken by a startup to become a unicorn are 6 months and 26 years, respectively.”
Q. Crowd Funding is a recent phenomena being practiced for getting seed funding usually through the internet. Elucidate. (Dec, 20 – 4 Marks)
Q. PQ Pvt. Ltd. is the newly incorporated company engaged in manufacturing of machinery parts proposes to raise the funds through Private Equity and Angel Investors. Explain these equity financing options available to the company. (June, 21 – 4 Marks)
Q. What are the eligibility criteria for a start-up to apply for Angel Tax exemption after obtaining recognition? (June, 25 – 3 Marks)
Q. Amar is a young entrepreneur willing to establish an incubator set up in the space of IT, software development, cloud computing or hardware/software maintenance. Advise Amar regarding the benefits available to entrepreneurs in establishing start-ups. (Dec, 18 – 5 Marks)
Q. J is a B.Tech. in Computer Science from Indian Institute of Technology, Roorkee. J has invented a new procedure for making of battery having long life as compared to lithium battery available in the market. The invention has been patented by J. J has made an online application over the portal setup by the Government of India for initial funding under start- up. In the online application, J observed that there is a column for seed funding. Advise J on the meaning and importance of Seed Capital. (June, 23 – 5 Marks)
Q. Differentiate between the Start-up India Seed Fund Scheme (SISFS) and the Credit Guarantee Scheme for Start-ups (CGSS). (June, 25 – 3 Marks)
Q. TKM Ltd. is a section 8 company registered under the Companies Act, 2013. The company desires to operate the educational institutes in the State of Madhya Pradesh. The company approaches you to seek your advice on the role of Incubators for assisting entrepreneurs in building and launching their start-ups. Draft a brief note on ‘Incubators’ as a mode of financing. (Dec, 23 - 3 marks) (New Syllabus)
Q. Global Pen and Plastic Limited was incorporated on 01st August, 2017. The company wishes to acquire the Start-up status. The management approached a Practicing Company Secretary for the assignment. Prepare a Board Note guiding the management as to when an entity will be considered a Start-up. (Dec, 23 – 4 Marks)
Q. GreenTech Innovations is a micro enterprise founded in 2020 by Raj, an engineering graduate with a passion for renewable energy. Based in a small town, the company specializes in manufacturing solar-powered lamps aimed at rural areas that lack reliable access to electricity. Raj’s vision is to provide affordable, sustainable lighting solutions that improve the quality of life in these communities.
Q. AB Handicrafts Pvt. Ltd. is a family-owned company based in Jaipur, specializing in the manufacturing and export of handcrafted textiles and home decor items. The company has been operating for the past 15 years and has established itself as a prominent player in the handicrafts industry. The company seeks professional advice on the criteria for classification of Micro, Small and Medium Enterprises. Advise AB Handicrafts Pvt. Ltd. (June, 24 – 3 Marks) (New Syllabus)
Q. ABC Pvt. Ltd. is engaged in the business of manufacturing of machinery parts. The company has the following investment in fixed assets:
Q. Kumar is a proprietor of a small scale unit manufacturing cotton clothes. He wants to know the benefits of registration with National Small Industries Corporation (NSIC). Advise Kumar. (Dec, 21 – 3 Marks)
Q. XYZ Pvt. Ltd., is engaged in manufacture of engineering components. The Company has investment of `5 Crore and Turnover of 25 Crore. The Company wants to know their category as per new definition of MSME. Will your answer differ, if XYZ Pvt. Ltd. is in service sector with the aforesaid limits of investment and turnover ? (June, 21 – 3 Marks)
Q. UV Pvt. Ltd. Wants to apply for Udyog Aadhar. The company seeks your advice on the criteria for making application for Udyog Aadhar under the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. Advise UV Pvt. Ltd. (Dec, 21 – 5 Marks)
Q. Discuss Udyog Aadhar Memorandum. (Dec, 22 – 4 Marks)
Q. What are the Functions of the National Board for MSMEs?
Q. Write in brief various scheme for the promotion and development of MSMEs?
Q. Explain the objectives of the National SC-ST Hub Scheme. (June, 25 – 3 Marks)
Q. MS Appliances, a small enterprise having investment in plant and machinery of
Q. GreenTech Innovations is a micro enterprise founded in 2020 by Raj, an engineering graduate with a passion for renewable energy. Based in a small town, the company specializes in manufacturing solar-powered lamps aimed at rural areas that lack reliable access to electricity. Raj’s vision is to provide affordable, sustainable lighting solutions that improve the quality of life in these communities.
Q. “ESDP scheme aims at promoting new enterprises, capacity building of existing MSMEs and inculcating entrepreneurial culture in the country.”
Q. Ramanlal, the promoter and director of a One Person Company (OPC) engaged in manufacturing and selling electronic gadgets, wishes to participate in a government tender related to his business. However, the tender eligibility criteria only allow registered private limited and public limited companies to participate.
Q. J and K are brothers and running the traditional business for production of snacks and namkin items under brand of “Rajaram”. The business organization is in form of Private Limited Company and both hold equal shareholding (50 : 50). Due to sudden death of J, there is need to convert the private company into (One Person Company) OPC, as there being no successor of J.
Q. EFG Pvt. Ltd. wants to convert the Private Company into a One Person Company (OPC). The Company seeks your advice on the following matters :
Q. What penalty can be imposed on One Person Company or Officer of such company who contravenes the provisions with respect to conversion of Private Company into One Person Company ? (Dec, 20 – 4 Marks)
Q. An unlisted Public Ltd. Company is having 220 members, 5 directors and is having public deposits of ₹ 5 crores and shareholders deposits of ₹ 3 crores (paid-up capital is ₹ 1 crore and free reserves ₹ 1 crore and Bank Loan ₹ 2 crores) is proposing to convert it into a Private Ltd. Company. Mention conditions to be satisfied before conversion of the Company into Private Ltd. Also list out important procedures to be complied for such conversion. (Dec, 20 – 5 Marks)
Q. Designated Partners of Sara LLP wants to convert LLP into Private Limited Company for further growth of their organization. They have already got the name approved and have secured the DSC and DIN. Now they seek your advice for further processes of conversion of their LLP into Private Limited Company. Advise. (Dec, 21 – 4 Marks)
Q. Describe the conditions required to be fulfilled for conversion of LLP “Technical Solution LLP” into a private limited company. “Technical Solutions Pvt. Ltd.” (June, 24 – 3 Marks)
Q. ABC Ltd. has been converted into a private limited company with the name ABC Pvt. Ltd. Brief the company on the major compliances that need to be followed by it after conversion into a private limited company. (Dec, 23 - 3 marks) (New Syllabus)
Q. Ankur has passed out MBA from a premier institution. He wants to become an entrepreneur but he is confused in choosing the form of ownership. Advise Ankur on the aspects which he should consider before deciding the form of ownership. (Dec, 18 – 4 Marks)
Q. What is meant by Joint Hindu Family Business? (Dec, 24 – 3 Marks) (New Syllabus)
Q. Smt. H is head of the family consisting of her husband (who is physically challenged person) and two sons. She heard that there about numerous benefits in terms of management, decision making and taxation, if she forms a Hindu Undivided Family (HUF), form of organization which is peculiar to India. As a professional, advice key points to Smt. H in creation of HUF covering taxation aspects. (Dec, 20 – 5 Marks)
Q. B is the Sole Proprietor of BN Metals. The business of the Company is to manufacture the parts of Boiler used in Turnkey Power Projects. The previous year’s turnover was ₹ 348 Crore. B is now participating in a big tender having cost estimates of ₹ 145 Crore. However, as per tender specification, B is qualified to submit the tender but in view of the consultant appointed by him, the form of business should be Company or LLP. Explain limitations of Sole Proprietorship form of business organisation. (Dec, 20 – 4 Marks)
Q. Describe the purposes for which the Societies can be formed under Section 20 of The Societies Registration Act, 1860. (Dec, 23 – 4 Marks)
Q. A group of employees from a large company has pooled funds to establish a housing society in Delhi. While some members suggest registering the society under the Societies Registration Act, 1860, others oppose it due to concerns about ongoing compliance requirements and legal/financial costs.
Q. A group of farmers desires to start the business of organic farm produce by opening branches in different districts and States of the country. The farmers have approached you to seek your advice on formation of a Multi State Co- operative Society under Multi State Cooperative Societies Act, 2002. Brief them on the documentary requirements for formation of Multi State Co-operative Society and the Authority with whom the application needs to be filed. (Dec, 23 - 3 marks) (New Syllabus)
Q. Prathik has studied about mass farming and is keen in uniting farmers in various states by forming a Multi State Co-operative Society. Brief Prathik on the documentary requirements for formation of Multi State Co-operative Society and the Authority with whom the application needs to be filed. (Dec, 19 – 4 Marks)
Q. What are the advantages of a Multi-State Co-Operative Society? (June, 25 – 3 Marks)
Q. Partnership can be formed according to the nature of the agreement amongst partners. Explain. (Dec, 18 – 4 Marks)
Q. A and B are the civil contractors having their own separate proprietorships. The State Government has issued the tender for construction of 10 kms. road. As per the terms of the tender, the bid can be submitted either by a partnership firm or a company only. A and B wish to form a partnership firm to become eligible for bidding in the aforesaid tender. Advise them the key ingredients of a Partnership Agreement. (June, 23 – 4 Marks)
Q. Paramvir & Associates, a firm of Practising Professionals consists of three partners Ashok, Paramvir and Vir having one third share each in the firm. According to Ashok and Paramvir, the activities of Vir are not in the interest of the firm and thus want to expel Vir from the firm. Advise Ashok and Paramvir whether they can do so quoting the relevant provisions of the Indian Partnership Act, 1932. (June, 19 – 4 Marks)
Q. A and B are partners in a partnership firm registered under the provisions of the Partnership Act, 1932. Due to B’s declining health, he intends to introduce his elder son, who is a minor, into the partnership to receive the benefits of the firm. Is B allowed to do so under the Partnership Act, 1932 ? Additionally, upon reaching the age of majority, within what time frame must B’s elder son decide whether to become a full partner in the firm ? (June, 25 – 3 Marks)
Q. Explain the difference between Public Trust and Private Trust. (Dec, 22 – 4 Marks)
Q. KPS Trust is a trust registered under the Indian Trusts Act, 1882. The trust desires to register itself as a Company Limited by Guarantee under Section 8 of the Companies Act, 2013. Describe the documents required to be submitted by KPS Trust for registration as a company limited by guarantee under Section 8 of the Companies Act, 2013. (Dec, 23 – 5 Marks)
Q. The Green Future Trust operates transparently and focuses on charitable purposes, adhering to legal requirements for trusts in India. According to the Indian Trust Act, 1882, what are the constituents of The Green Future Trust ? (Dec, 24 – 3 Marks) (New Syllabus)
Q. Differentiate between Partnership Agreement and Trust Deed. (June, 24 – 3 Marks) (New Syllabus) (Dec, 24 – 3 Marks) (New Syllabus)
Q. ‘Asset Reconstruction Companies are created to manage and recover Non- Performing Assets’ — Comment referring the functions and benefits of Asset Reconstruction Companies. (Dec, 19 – 4 Marks)
Q. Resilience Asset Reconstruction Company (RARC) emerged in response to the growing crisis of non-performing assets (NPAs) in the Indian banking sector by offering innovative solutions for asset recovery and management.
Q. Explain the procedure for registration of Asset Reconstruction Company (ARC). (June, 23 – 4 Marks)
Q5. Discuss the privileges available to ST Finvest Ltd. to process loan to R Cloth Trading Pvt. Ltd. quickly at a very competitive rate of interest as compared to the banks. (Dec, 23 - 3 marks) (New Syllabus)
Q. Rakesh is interested to form a Non-Banking Financial Company (NBFC) for carrying business of providing micro finance in the rural areas in the name of ‘SABKO Loan Company Ltd.’. Advise him about the various categories of NBFCs and let him know as to which category of NBFC will suit him for applying the license. (Dec, 18 – 5 Marks)
Q. Prepare a note on ‘Infrastructure Debt Fund: Non-Banking Financial Company (IDF-NBFC)’ (Dec, 24 – 3 Marks) (New Syllabus)
Q. What do you mean by ‘Systemically Important Core Investment Company (CIC- ND-SI)’ ? (Dec, 23 – 4 Marks)
Q. Referring to the provisions of Companies Act, 2013, state the circumstances under which the Reserve Bank of India may cancel the certificate of registration granted to a Non- Banking Financial Company (NBFC). (June, 23 – 4 Marks)
Q. VRS Finance Ltd., a non-banking financial company, has ceased to operate as a non- banking financial institution in India. The Reserve Bank of India (RBI) has subsequently revoked the certificate of registration issued to VRS Finance Ltd. Referring to the applicable statutory provisions, assess the legality and justification of the RBI’s decision to cancel the certificate of registration granted to VRS Finance Ltd.. VRS Finance Ltd., a non-banking financial company, has ceased to operate as a non- banking financial institution in India. The Reserve Bank of India (RBI) has subsequently revoked the certificate of registration issued to VRS Finance Ltd. Referring to the applicable statutory provisions, assess the legality and justification of the RBI’s decision to cancel the certificate of registration granted to VRS Finance Ltd. (June, 25 – 3 Marks)
Q. Bhaskar is presently running a business of finance. He has planned to promote an Infrastructure Finance Company along with his friends. He seeks your advice to know whether it is a Non-Banking Finance Company requiring Reserve Bank of India’s registration and criteria to be satisfied by such Company. Also clarify on how Net owned Fund is calculated. (Dec, 19 – 5 Marks)
Q. State the method of calculating Net Owned Funds as per RBI definition for obtaining NBFC license. (Dec, 24 – 3 Marks) (New Syllabus)
Q. Explain in brief the eligibility criteria for obtaining Housing Finance Company Registration under the National Housing Bank Act, 1987. (Dec, 23 - 3 marks) (New Syllabus)
Q. ABC Housing Finance Ltd., a newly established company, intends to register as a Housing Finance Company (HFC) under the National Housing Bank Act, 1987. The company meets all the eligibility criteria for registration, except for the Net Owned Fund (NOF) requirement, as its current NOF is ` 18 crore, which is below the required threshold.
Q. “Concept of self help group” is the most exciting discovery in the context of Microfinance. Explain the terms and features of microfinance. (Dec, 19 – 4 Marks)
Q. OTM Financial Services Limited got the license to operate the Payment Bank in India from RBI. As per the terms of the license, where compliances including KYC verification are required to be complied with strictly from time to time. OTM Financial Services Limited made various non-compliances and accordingly lot of restrictions and penalties were imposed by RBI. (June, 24 – 3 Marks) (New Syllabus)
Q. Payments banks is a new model of banks conceptualized by the Reserve Bank of India. Describe the key issues which require compliance by an applicant Company. (Dec, 21 – 3 Marks)
Q. Payment banks is a new model of banks conceptualised by the Reserve Bank of India (RBI). Elucidate. (Dec, 23 - 3 marks) (New Syllabus)
Q. Easy Finance Ltd. is willing to enter into banking business via “Payment Bank”. The Board of directors of the company seeks your advice with respect to the required criteria to be fulfilled by the company with respect to the following :
Q. Durgesh is working as a driver in a cab provider company. One day, a passenger advised him that he can own a car by availing financial assistance under Pradhan Mantri Mudra Yojna (PMMY). He seeks your advice regarding the procedure for availing the Transport Vehicle Loan for commercial use from MUDRA Bank. Advise Durgesh. (June, 23 - 5 marks)
Q. Raman wants to start the business of fruits and vegetables vendor. He seeks your advice on the criteria, business categories with the maximum amount of loan allowed and eligibility for obtaining loan under the scheme of Pradhan Mantri Mudra Yojana. Advise Raman. (Dec, 21 – 4 Marks)
Q. Chitra Chit Fund Company, established in 2015, operates in a small town in India, providing a platform for local residents to save and borrow money through a traditional chit fund system. With a growing customer base, the company aims to expand its operations while ensuring compliance with regulatory requirements.
Q. BN Ltd. and PL Ltd. desire to form a Joint Venture for setting-up a new infrastructure project in the State of Karnataka. Both the companies approach you to seek your advice on the Joint Venture Agreement to be entered into between them. Advise them the essential components of a Joint Venture Agreement. (Dec, 23 - 3 marks) (New Syllabus)
Q. Contractual joint venture is useful where the establishment of a separate legal entity is not needed or creation of such a separate legal entity is not feasible - Comment. (June, 21 – 4 Marks) (Dec, 20 – 4 Marks)
Q. Renewable Power Ltd. (RPL) is a leading renewable energy developer with expertise in solar and wind power generation. RPL has identified Wind Power Pvt. Ltd. (WPPL) as a potential partner to establish an equity-based joint venture focused on developing large-scale renewable energy projects in the country. RPL approaches you to seek your advice on the key characteristics of equity-based joint venture. Advise RPL. (June, 24 – 3 Marks) (New Syllabus)
Q. ‘Every equity based joint venture gives birth to a new entity’. Discuss in brief the different types of entities which are permitted by Government of India to form a joint venture entity. (June, 19 – 4 Marks)
Q. Differentiate between an Equity based Joint Venture and a Contractual Joint Venture. (Dec, 24 – 3 Marks) (New Syllabus)
Q. ‘Joint Ventures can be extremely valuable and chances of their failure can be reduced to a great extent, if strategically formed’ — Comment on important strategies of joint venture. (Dec, 19 – 4 Marks)
Q. Global Education Network, Pakistan based Education Company wants to set up equity based joint venture in India. As a professional in India, Company seeks your advice about various restrictions under Foreign Direct Investment (FDI) of Government of India that a foreign entity may face. Advice. (Dec, 18 – 4 Marks)
Q. Global Infra Ltd., an Indian entity, is in the process of drafting a joint venture agreement for forming joint venture (JV) with a foreign company based out of Singapore to expand its business outside India. Advise on the key issues which parties to the agreement should consider while drafting the JV agreement. (Dec, 18 – 4 Marks)
Q. SPM Ltd. and BRB Ltd. wish to form a new company in the name of BNPM Ltd. for the purpose of manufacturing different types of inks in India. Both companies seek your advice on the key issues which must be kept in mind while drafting the Shareholder’s Agreement (SHA). Advise them. (June, 25 – 3 Marks)
Q. A Special Purpose Vehicle (SPV) or Special Purpose Entities (SPE) are generally formed for a special purpose. Elucidate. (June, 21 – 4 Marks)
Q. Comment on the following :
Q. Explain in brief the objectives of Foreign Collaboration. (Dec, 23 - 3 marks) (New Syllabus)
Q. M N Ltd., a Company registered in Japan has established a place of business in India. Advise MN Ltd. on the documents required to be filed by the Company with the concerned Registrar of Companies under the provisions of the Companies Act, 2013. (Dec, 21 – 4 Marks)
Q. Melta LLC is a Limited Liability Corporation registered in California (USA). The company has no place of business in India by itself or through agent, but it’s doing online business through electronic mode in India. Explain whether Melta LLC will be treated as a Foreign Company as per the provisions of the Companies Act, 2013. (June, 21 – 4 Marks)
Q. Actavis Ireland Ltd. a pharma firm incorporated in Ireland :
Q. Global Tech Solutions, a prominent software development company headquartered in the United States, has successfully established its initial branch office in Bengaluru. Following the success of this office, the company has identified the need to establish an additional branch office in Hyderabad to further expand its market presence and enhance service delivery.
Q. TelecomGlobal Ltd., a UK-based company, intends to set up a Project Office in the Andaman and Nicobar Islands, India, as part of its expansion into the telecommunications sector. The CEO of TelecomGlobal Ltd., James Anderson, seeks your advice on whether this establishment requires prior approval from the Reserve Bank of India (RBl), considering both the sector-specific regulations governing foreign direct investment in telecommunications and the geographical location of the Andaman and Nicobar Islands.
Q. Write Checklist of setting up of Branch Office/ Liaison Office or Project Office in India by a Foreign Company?
Q. A Company registered in Japan had opened the Project Office for setup and commissioning of Coal based Power Plants in India. Due to change in Government policy and promotion of Solar Power projects and other power plants based on renewable energy, the Project Office is not needed. The Nodal Officer in India is instructed by the Management to close the Project Office after due compliances under the Law. Describe the process for closure of Project Office in India opened by foreign entity. (June, 24 – 3 Marks) (New Syllabus)
Q. Moonlight Inc., a USA-incorporated company, has a branch office in Surat, India, and the company intends to close it. Advise on the procedure for closing the branch office in India, including necessary legal and regulatory steps. (June, 25 – 3 Marks)
Ans. Closure of BO/PO/LO
Requests for closure of the BO / LO/ PO and allowing the remittance of winding up proceeds of BO / LO/ PO may be submitted to the designated AD Category - I bank by the BO/ LO/ PO or their nodal office, as the case may be. The application for winding up may be submitted along with the following documents:
Q. What are the parameters of setting up of Project Office in India by a Foreign Company?
Q. S&T Corp. is a company registered in Germany. The company desires to open a Branch Office in India. Advise S & T Corp. the activities permitted for a branch office in India of a person resident outside India under the Foreign Exchange Management Act, 1999 read with Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016. (Dec, 23 - 3 marks) (New Syllabus)
Q. How the recent regulatory changes impacted the registration process for foreign companies establishing a business in India? (June, 25 – 3 Marks)
Q. Which are the technological aspects that should be considered before choosing a business location outside. (Dec, 24 – 3 Marks) (New Syllabus)
Q. ABC Ltd. is considering expanding its operations into Singapore due to the country’s favourable business environment. The company aims to establish a subsidiary in Singapore to tap into the region’s growing market and to benefit from Singapore’s pro-business policies. ABC Ltd. seeks your advice on the process and requirements for incorporating a company in Singapore. Advise ABC Ltd. (June, 24 – 3 Marks) (New Syllabus)
Q. Discuss in brief the eligibility for referring any entity as ‘Indian Entity’ under the new regime as per the provisions of Foreign Exchange Management Act, 1999. (Dec, 23 - 3 marks) (New Syllabus)
Q. Comment on the following :
Q. Hemanth, who is interested in making overseas investment (financial commitment) in an energy sector in Vietnam, which exceeds the prescribed limit of the net worth of his Company as per the latest audited Balance Sheet. Accordingly, investment falls under Approval route instead of Automatic route. What are factors to be taken into account by Reserve Bank of India for considering such application? (June, 21 – 4 Marks)
Q. Can a Navratna Company in Oil and Gas sector in India, which are duly approved by the Government of India, invest in Overseas Unincorporated entities in oil sector without any limit under automatic route? (Dec, 20 – 5 Marks)
Q. Your Company proposes to enter into Joint Venture outside India and the Management of the Company wants to know from you various methods/modes available for funding the joint venture. (Dec, 19 – 4 Marks)
Q. Divyesh Digital Networks LLP wants to expand its business through investment in an overseas Joint Ventures (JV) or/and Wholly Owned Subsidiaries (WOS). The partners of the firm seek your advice about the various sources/modes of funding through which overseas investment can be made. Advise them in light of the provisions of Foreign Exchange Management Act, 1999. (June, 19 - 4 marks)
Q. Agarwal Enterprises Ltd. (AEL) is a resident company in India for the last 15 years. The company is operating in various sectors e.g. power, infrastructure, ports, oil, telecommunications and IT etc. Now, the company is planning to make an investment of ₹ 10,000 crore in Australia based solar power projects through the joint venture in Australia.
Q. What are the factors to be considered by a Secretarial Auditor while segregating the applicability of Specific Law and General Laws. (June, 24 – 3 Marks) (New Syllabus)
Q. Enumerate the specific laws and regulations that are applicable to “Housing Finance Companies” in India. (June, 24 – 3 Marks) (New Syllabus)
Q. Which laws are applicable to Trading & Retail Industry?
Q. Describe in brief the compliances under Environment Laws. (Dec, 23 - 3 marks) (New Syllabus)
Q. ‘Contracts lie at the crux of running any business’. Elucidate. (Dec, 24 – 3 Marks) (New Syllabus)
Q. Which industries come under the purview of compulsory licensing as per New Industrial Policy, 2015 ? (June, 23 – 3 Marks)
Q. Z, a resident of Bangalore, desires to set up a food manufacturing unit where he will cook variety of food items like Idly, Dosa, PaniPuri, Pongal, Dry Samosa, Club Kachori and many more with the help of imported & automatic machines and pack itself for retail selling in the market under his brand name. Advise him on the registration requirement before starting any petty food business. (Dec, 20 – 5 Marks)
Q. Ramesh is running a fast food shop in Chandni Chowk. He seeks your advice on the requirement of obtaining FSSAI Registration. Advise Ramesh. (Dec, 21 – 3 Marks)
Q. Briefly state the types of FSSAI License under the Food Safety and Standards Act, 2006. (Dec, 23 - 3 marks) (New Syllabus)
Q. Ramesh is going to setup a manufacturing, storing and packaging plant of cow ghee. He seeks your advice on the types of FSSAI license required to take before starting food business. Advise. (Dec, 22 – 4 Marks)
Q. Ava runs a home-based business making cakes and pastries and plans to open a shop with an expected annual turnover of ` 20 lakh. Does she need to get a registration or license from the Food Safety and Standards Authority of India (FSSAI) for her business ? If yes, which type of FSSAI approval does she need ? (June, 25 – 3 Marks)
Q. Ameer is a registered Pharmacist under State Pharmacy Council wants to start his own pharmacy shop in India, for which he requires Drug license. Suggest him the minimum requirements for obtaining the Drug license. (June, 21 – 3 Marks)
Q. Namit has completed his diploma in pharmacy from a premier institute and wants to start wholesale Drug business. He seeks to get registered himself as wholesale drug dealer in State Drugs Standard Control Organization. Explain him the minimum requirements before applying wholesale drug license. (June, 22 – 3 Marks)
Q. What forms are required to be filed with ROC for registration of a new company where the registration of GST, EPFO and ESIC is also applied simultaneously? (Dec, 20 – 3 Marks)
Q. Rajan, a toy manufacturer wants to export toys to Thailand. He seeks your advice on the requirement of Import Export Code (IEC) for exporting toys to Thailand. Advise Rajan along with the documents required for obtaining IEC.
Q. Registration of Import-Export Code (IEC) has lifetime validity. In view of the statement, mention essential features of IEC registration. (Dec, 20 – 3 Marks)
Q. MN Ltd. is a newly incorporated company intends to carry on the business of international trade activities in India. The company seeks your guidance on the requirement of obtaining an Import Export Code (IEC). Advise MN Ltd. on the requirement of IEC. (June, 24 -3 Marks)
Q. Any business entity doing business in India requires a PAN (Permanent Account Number) whether it is registered in India or not. Elucidate. (Dec, 22 – 3 Marks)
Q3. State the utility of PAN for R Cloth Trading Pvt. Ltd. (Dec, 23 - 3 marks) (New Syllabus)
Q. What is the importance of linking the Permanent Account Number (PAN) with Aadhaar ? (June, 25 – 3 Marks)
Q. Registration under Central Goods & Services Tax Act, 2017 is made compulsory in certain cases, irrespective of the aggregate turnover. Explain. (Dec, 18 – 3 Marks)
Q. What do you mean by ‘Casual Taxable Person’ under Central Goods & Service Tax Act, 2017 ? (Dec, 23 – 3 Marks)
Q. Why does K advise R to go for “Composition Scheme” under the GST Act, 2017? (Dec, 23 - 3 marks) (New Syllabus)
Q. Ramesh has purchased a shop in local market of New Delhi and wants to set up a business of electronic goods. Is he required to get his shop registered under the Shops and Establishment Act ? If so, advise him with the procedure. (Dec, 18 – 3 Marks)
Q. Karan wants to open garment shop in a shopping mall. Is he required to get his shop registered under Shops and Establishment Act, 1948? If so, advise him the procedure. (June, 22 – 3 Marks)
Q. Ratan has started the business of handicraft items in Chandni Chowk, Delhi. One of his friends advised him to obtain the license under the Shop and Establishment Act, 1948. He approaches you to seek your advice on the contents of application for license under the Shop and Establishment Act, 1948. Advise Ratan. (Dec, 23 - 3 marks) (New Syllabus)
Q. Which industries come under the purview of compulsory licensing as per New Industrial Policy, 2015? (Dec, 18 – 3 Marks)
Q. Write short notes on:
Q. What do you mean by ‘Other Service Providers’ (OSP) under New Telecom Policy, 1999? (Dec, 23 - 3 marks) (New Syllabus)
Q. Aravind has recently completed Telecommunications engineering and he is keen in starting his own venture for Telecommunication support services. He has heard about OSP License and approached you to get more information on it. Brief him, on the purpose, authority authorised to issue such license, documents necessary for making application and compliance after registration. (Dec, 19 – 5 Marks)
Q. A and B, close friends who graduated from a renowned college, want to start an ‘Other Service Providers’ (OSP) company for commercial purposes in Rewari, Haryana. What licenses and documents are needed to obtain to operate as a licensed OSP, similar to other service providers? (June, 24 – 3 Marks)
Q. What conditions are required to be satisfied by the White Category of industries to be eligible for pollution license exemption? (June, 23 – 4 Marks)
Q. NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences between them. Explain. (Dec, 22 – 4 Marks)
Q. Describe the types of entities involved in the principal business of financial activity which do not require Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI). (Dec, 23 – 3 Marks)
Q. EM Finvest Ltd. desires to obtain the Non-Banking Financial Company (NBFC) License from the Reserve Bank of India (RBI). The company approaches to seek your advice on the documents required to be submitted to RBI for obtaining NBFC License. Advise EM Finvest Ltd. (Dec, 23 – 4 Marks)
Q. (i) Central Goods & Services Tax Act, 2017 (CGST Act, 2017) prescribe the cases where registration under the Act is compulsory, irrespective of the aggregate turnover. Discuss.
Q. QuickTech Solutions, a small software development company based in Pune, specializes in creating customized software applications for businesses across India. Initially, the company operated under the composition scheme due to its modest revenue. However, in the financial year 2022-23, QuickTech’s turnover surpassed ` 30 lakh, and it began offering services to clients in other states.
Q. Entrepreneurs are required to obtain Statutory Clearances relating to Pollution Control and Environment while setting up an Industrial Project. Central Pollution Control Board has specified list of industries requiring pollution license/certificate or consent. Ministry of Environment carries on the classification from highest to lowest Pollution Index and categorized the industries. Explain. (Dec, 22 - 5 marks)
Q. State the procedure for obtaining NOC from Pollution Control Board. (June, 25 – 3 Marks)
Q. Define the term “Commercial Establishment” under Shop & Establishment Act. (Dec, 22 – 2 Marks)
Q. Write down the procedure to apply for Industrial License under Industries (Development and Regulation) Act, 1951? (Dec, 23 - 3 marks) (New Syllabus)
Q. 10 friends decided to start a banking business by incorporating a banking company as 8 of them are having banking experience. They have decided to float a small finance bank. Subsequently they applied for licensing to RBI. However, RBI contended that all the required conditions for a small finance bank have not been followed. They approached you to guide on the matter. Prepare the note to management explaining them the required conditions to be fulfilled to start a banking company. (Dec, 23 – 4 Marks)
Q. Under what circumstances an applicant shall not be eligible to apply for registration under IRDA (Insurance Regulatory & Development Authority)? (Dec, 23 – 5 Marks)