The Institute of Company Secretaries of India 2008 ICSI Final Secreterial Management and System Audit - Question Paper

Forfeiture of shares corresponding to the amount defaulted by Sanat was sanctioned.
Comment on the shareholding to be shown against Sanat in the current year and the number of shares and amount forfeited by the company.
(4 marks)
(c) Dilip was managing director of N Ltd., a wholly owned subsidiary of TF Ltd., a listed company. On 31st March, 2007, N. Ltd. had incurred a huge loss of Rs.79 crore and this was bound to affect the profits of TF Ltd. This info known to Dilip was disclosed to the public on 30th April, 2007. Meanwhile, i.e., the period ranging from 31st March, 2007 and 30th April, 2007, Dilip’s spouse who received info from Dilip sold 2,90,000 shares of TF Ltd. held in her own name as well as in the companies controlled by her and her father-in-law. Examine and comment as a Secretarial Auditor.
(4 marks)

(d) State whether the subsequent will be considered as ‘charge’ requiring registration under part 125 of the Companies Act, 1956 :
(i) An assignment of book debts as security.
(ii) A charge on future debts.
(iii) Loan from bank against security of fixed deposits.
(iv) A holder of lien is a secured creditor and the lien is statutory.
(4 marks)

PART—B
(Answer ques. No.7 which is compulsory and any 2 of the rest from this part.)

4. (a) Examine whether ‘Internal Audit’ is mandatory in the subsequent cases :
(i) Paid-up capital plus free reserves of Agri Ltd. at the commencement of the financial year was Rs.60 lakh. The annual turnover during the 3 consecutive financial years immediately preceding the financial year concerned was Rs.3 crore, Rs.4 crore and Rs.5 crore respectively.
(ii) The turnover of Bio Products Ltd. during the 3 consecutive financial years immediately preceding the financial year concerned was Rs.5 crore, Rs.6 crore and Rs.7 crore respectively. The total of the paid-up capital and free reserves at the commencement of the financial year was Rs.45 lakh.
(2 marks each)
(b) From the subsequent particulars of Food Products (Pvt.) Ltd., examine whether the Companies (Auditor’s Report) Order, 2003 is applicable to the company : – Paid-up capital at the commencement of the financial year Rs.30 lakh
– Free reserves at the commencement of the financial year Rs. 12 lakh
– Outstanding loan taken from State Financial Corporation Rs.9.50 lakh

Earning:   Approval pending.