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Company Law Flashcards

1
Q

Filing of annual return to

A

60 days of AGM

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2
Q

Filing of Financial Statements

A

30 Days of AGM

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3
Q

Spending on CSR

A

At least 2 percent of net profit in preceding 3 FYs

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4
Q

Requirement of Net worth Turnover Net Profit for CRS Committee

A

In preceding FY

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5
Q

Filing Financial Statements with registrar - OPC

A

180 days from closure of FY

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6
Q

Company fails to file Financial Statements

A

10,000 100 ED 2 Lakhs

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7
Q

Directors failing to file a copy of financial statements

A

10,000 100 ED 50,000

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8
Q

Who can be internal auditor

A

CA , CWA ,any other professional decided by Board

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9
Q

Copy of audited financial statements, consolidated financial statements, auditor’s report and every other document that is required by law to be attached to financial statements will be sent to?

A

Members, Trustees, Debenture Holders, any other person entitled thereto

When —- 21 days before the date of the meeting

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10
Q

Reopening of Accounts on Tribunals order

A

Max last 8 yrs

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11
Q

Voluntary revision of financial statements or Board Report

A

Max 3 preceding FYs

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12
Q

NFRA chairperson qualification

A

Accounting auditing finance and law

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13
Q

NFRA max members

A

15 - whole time or part time

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14
Q

Financial Statements are to be approved by

A

Chairperson of the company if authorized by Board or 2 Directors out of which one will be MD

CEO
CFO
CS

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15
Q

Boards report to be signed by?

A

Chairperson if authorized by Board or 2 Directors one will be MD

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16
Q

Composition of CSR committee

A

3 or more Directors and at least one shall be Independent Director

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17
Q

When no CSR committee required

A

If amount to be spent does not exceed 50 lakh Rs

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18
Q

Unspent CSR amount to be transferred to a fund specified in schedule 7

A

Within 6 months of the expiry of FY

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19
Q

Amount not spend on CSR due to ongoing project will be transferred to?

A

Unspent Corporate Social Responsibility Account within 30 days of the close the third financial year ( because 3 yrs time is there for ongoing project)

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20
Q

Amount transferred to UCSR account to be utilized ?

A

Within 3 years from date of transfer

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21
Q

Every company shall keep at its registered office ?

A
  1. Books of Accounts
  2. Books and Papers
  3. Financial Statements

For every financial year which gives a true and fair view of the state of affairs of the company (including branch offices ).

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22
Q

Books of the company shall be kept on ____ basis and according to ____

A

Accrual basis and according to double entry system of accounting

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23
Q

Books of accounts of a company can be kept at any other place than the registered office only if ?

A
  1. Board of Director direct and
  2. Registrar is informed within 7 days about the full address of that other place
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24
Q

The Books of accounts of a company shall be open for inspection at _____ by _____

A

Registered office or any other place in India by ANY DIRECTOR during business hours

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25
Q

Inspection of the books of accounts of any subsidiary company can be done by?

A

Person authorized by a resolution of the Board of Director

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26
Q

The books of accounts of every company relating to a period of not less than ____ immediately preceding a financial year together with vouchers shall be kept in good order

A

8 financial years immediately preceding a financial year

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27
Q

_____ are responsible for maintaining the books of accounts and complying with the provisions of Section 128 of the Companies’ Act.

A
  1. Managing director
  2. Whole time director in charge of finance
  3. Chief Financial officer
  4. Another person of a company charged by the Board

50,000…5 lakh

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28
Q

Section 128

A

Books of Accounts

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29
Q

Section 129

A

Financial Statements

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30
Q

The financial statements shall comply with the accounting standards notified under section 133 and shall be in such form as provided for in Schedule___?

A

Schedule III

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31
Q

At every annual general meeting of a company, ________ shall lay before such meeting financial statements for the financial years

A

The Board of Directors of the company

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32
Q

Where a company has one or more subsidiaries or associate companies , in addition to the financial statements prepare a ______

A

Consolidated financial statement of the company, subsidiaries and associate companies .

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33
Q

A company shall also attach along with its financial statement ?

A

A separate statement containing salient features of the financial statement of its subsidiaries and associate companies.

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34
Q

Where the financial statements of a company do not comply with the accounting standards , the Company shall disclose in its financial statement ?

A
  1. The Deviation
  2. The Reasons
  3. Financial effects arising from the deviation
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35
Q

section 129A- Periodical financial results

A

The Central Government may require such classes of UNLISTED COMPANIES

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36
Q

Under Section 129 A- the Central Government may require an unlisted company to ?

A
  1. Prepare Financial Statements on a periodical basis
  2. Complete Audit or Limited review
    File a copy with the registrar within 30 days
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37
Q

Section 130 lays down Re-opening of accounts of the company upon an application by?

A
  1. Central Government
  2. Income-tax authorities
  3. Securities and Exchange Board of India
  4. Any Statutory / Regulatory body or authority
  5. Any person concerned.
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38
Q

The company shall re-open the accounts only if pursuant to the application, it is declared by a Court or Tribunal to the effect that?

A
  1. earlier accounts were prepared in a fraudulent manner
  2. affairs of the company were mismanaged due to which there is a doubt on the reliability of financial statements .
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39
Q

No order shall be made under Section 130 in respect of re-opening of books of accounts relating to a period earlier than ______

A

8 financial years immediately preceding the current financial year.

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40
Q

Section 131- Voluntary revision of ?

A
  1. Financial Statement
  2. Board report
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41
Q

Under section 131, voluntary revision can be done of any ____?

A

Three preceding financial years

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42
Q

Voluntary revision can be done only with approval of ?

A

Tribunal

43
Q

Why is voluntary revision opted for ?

A

If it appears to the Board of Directors of the Company that -

  1. The financial statements ,
  2. Board Report

do not comply with Section 129 or section 134.

44
Q

While approving a voluntary revision, the Tribunal shall give notice to ?

A
  1. Central Government
  2. Income-tax authorities
45
Q

Revised financial statement or board report shall not be prepared or filed more than _______?

A

Once in a financial year

46
Q

In case of voluntary revision, detailed reasons shall be disclosed in ___?

A

Board’s report in the relevant financial year to which such revision relates.

47
Q

Section 132- constitution of NFRA by the Central Government

A

It shall:
1. Recommend the laying down of Accounting and Auditing Policies
2. Monitor compliance with accounting and auditing standards
3. Oversee the functioning of persons who are associated with the compliance of standards

48
Q

The Chairperson of NFRA shall be having expertise in ?

A
  1. Accounting
  2. Auditing
  3. Finance
  4. Law
49
Q

Members of NFRA shall be part time and full time members not exceeding?

A

15 members

50
Q

The Chairperson and members shall make a declaration regarding ?

A
  1. Conflict of interest and ,
  2. Lack of independence
51
Q

The Chairperson and members who are in full-time employment with NFRA shall not be associated with?

A

Any Audit Firm (including consultancy firms)

  1. During the course of their appointment
  2. Two years after ceasing to hold such appointment
52
Q
A
52
Q

Each division of NFRA shall be presided by ?

A
  1. Chairperson
  2. Full time member authorized by the Chairperson
53
Q

NFRA shall have the power to investigate either ?

A
  1. Suo-motu, or
  2. Reference made to it by the Central Government
54
Q

NFRA shall investigate into the matters of ____

A
  1. Professional , or
  2. Other misconduct committed by

A. ANY MEMBER
2. FIRM OF CHARTERED ACCOUNTANTS , registered under the CA Act, 1949.

55
Q

Penalties imposed by NFRA?

A
  1. Individual - Min One Lakh and max 5 times the fees received
  2. Firm - Min five Lakh and max 10 times the fees received
56
Q

NFRA may debar any member or firm from ?

A
  1. Being appointed as Auditor or Internal Auditor
  2. Performing any valuation under section 247 for 6 months to 10 years
57
Q

Professional or other misconduct shall have the meaning assigned under ?

A

Section 22 of Chartered Accountants Act, 1949.

58
Q

Head office - New Delhi and meet at such other places as ?

A

IT DEEMS FIT

59
Q

NFRA shall forward ___ to the Central government annually?

A
  1. Annual report - full account of its activities
  2. Audit report
60
Q

Section 133 - Central Government to prescribe Standards of Accounting

A

Recommended by - ICAI
Consultation with - NFRA

61
Q

The financial statement, including consolidated financial statement shall be approved by ____ before ______

A

Approved by the Board of Directors before being signed by the (FINANCIAL STATEMENTS ARE SIGNED BY ?)

  1. Chairperson of the company or Two Directors out of which one shall be managing director
  2. CEO
  3. CFO
  4. CS
62
Q

The auditor’s report shall be attached to ____

A

Every financial statement

63
Q

The Central Government shall prescribe _____ for the compliance of section 134 by One Person Company or Small Company

A

Abridged Board’s Report

64
Q

The report of the BOD to be attached to the financial statement under section 134 shall , IN CASE OF A ONE PERSON COMPANY , mean a report containing ?

A

Explanations by the Board on every :

  1. Qualification,
  2. Reservation
  3. Adverse remark
  4. disclaimer

Made by the AUDITOR in his report.

65
Q

The Board’s report is signed by ?

A
  1. Chairperson of the company - if authorized by the Board
  2. If a chairperson not authorized - by at least 2 directors ( one shall be MD)
66
Q

The transfer of any security or other interest of a deceased person in a company made by his legal representative shall, _______ be valid

A

Even if his legal representative is not a holder thereof be valid AS IF HE HAD BEEN THE HOLDER AT THE TIME OF EXECUTION OF INSTRUMENT OF TRANSFER.

67
Q

Ordinary resolution is when votes cast in favor including ____ exceeds votes cast against

A

Including the casting vote

68
Q

A body corporate may by ____ authorize a person it thinks fit to act as a representative at ANY MEETING of the company

A
  1. Resolution of the Board of Directors, or
  2. Other Governing Body
69
Q

If a company has incurred loss during the current financial year upto the end of the quarter immediately preceding the date of declaration of interim dividend , such interim dividend will not be higher than ____ declared by the company during immediately _____ financial years

A

Average Dividends of preceding 3 financial years

70
Q

A company which fails to comply with section 73 and 74 will not

A

declare dividend on its equity shares

71
Q

Sums credited to Investor education and protection fund

A
  1. Grants given by the Central Government after due appropriation by the Parliament in this behalf
  2. Donations given to the fund by the Central Government, State Government, Companies or other institutions
  3. Amount in the Unpaid Dividend Account established under section 124 of the Companies Act, 2013
  4. Amount in the general revenue account of the central government which had been transferred to that account under section 205 A of the Companies Act, 1956
  5. Amount lying in the Investor Education and Protection Fund under section 205 C of the Companies Act, 1956.
  6. Income received out of investments made from the Fund
  7. Amount received under Section 38 (4)
  8. Application money received by the company and due for refund
  9. Matured deposits
    10 Matured Debentures
  10. Sale proceeds of fractional shares
  11. Redemption amount of preference shares remaining unpaid or unclaimed for seven or more years
72
Q

Investor Education and Protection Fund shall be utilized for ?

A
  1. Refund in respect of unclaimed dividend , matured deposits, matured debentures, application money due for refund and interest
  2. Promotion of investors’ education awareness and protection
  3. Distribution of any disgorged amount among eligible and identifiable applicants who have suffered losses
  4. Reimbursements of legal expenses incurred in pursuing class action suits under section 37 and 245
73
Q

An independent director should not have any pecuniary relationship with the company except :?

A
  1. His own remuneration , or
  2. Transaction not exceeding 10% of his total income .
74
Q

The relative of an independent director should not be holding any security in the company except ?

A

Face value not exceeding fifty lakh rupees or two percent paid up share capital of the company

75
Q

The relative of an independent director should not have any pecuniary transaction or relationship with the company amounting to?

A

2 percent or more of its gross turnover or total income

76
Q

The independent directors or his relatives should not be an Employee, Partner, proprietor ( 3 immediately preceding financial years of any legal or consulting firm that has had a transaction with the company amounting to ?

A

10 % or more of the gross turnover of SUCH FIRM

77
Q

The independent director should not hold together with his relatives ______% or more of the total voting power of the company

A

2% or more of the total voting power of the company

78
Q

The independent director or his relative should not be a CEO or director of any NGO that receives ?

A
  1. 25% of its receipts from the company/ promotions/directors
  2. Holds 2% or more of the total voting power of the company
79
Q

An independent director shall not be entitled shall not be entitled to any ___

A

Stock option

80
Q

Independent director has to comply with the provisions of Schedule ___

A

IV

81
Q

Independent director shall receive remuneration by way of ?

A
  1. Fees provided under Section 197(5)
  2. Expenses for participation in Board and other meetings
  3. Profit related commission .
82
Q

Conditions for appointment of director for a second term of 5 years is ?

A
  1. Special Resolution
  2. Disclosure in Board’s report
  3. Cooling period of 3 years - not be associated with the company in any capacity directly or indirectly
83
Q

_____ shall be liable only for the acts/omissions that have occurred :

  1. With their knowledge
  2. Attributable through Board process
  3. With their consent
  4. They have not acted diligently
A
  1. Independent Directors
  2. Non-executive director not being a promoter or KMP
84
Q

Small shareholder means a shareholder holding shares of ?

A

Nominal value not exceeding twenty thousand rupees.

85
Q

When determining the number of rotational directors - “total number of directors shall not include ?

A

Independent Directors

86
Q

Every company shall within —— days of the intimation by director under section 156 furnish the DIN of all its directors to ________

A

15 days to :

  1. Registrar
  2. Other officer
  3. Authority as specified by the Central Government
87
Q

A company may, by ordinary resolution ( WITH SPECIAL NOTICE) remove a director not being a director _____

A

1.Appointed by the Tribunal under Section 242.
2. Independent director who was appointed for a second term
3. Appointed under section 163 by proportional representation.

88
Q

Section 170 - Register of 1. Directors and 2. KMP

A

Every company shall keep such a register at its registered office containing particulars about :

Details of securities held by Directors and KMP in the company, holding , subsidiary and associate company

89
Q

Section 190- Contract of employment with ?

A
  1. Managing Director
  2. Whole time director
90
Q

The qualifications, observations, comments of the auditor on matters which have an adverse effect on the functioning of the company shall be read out ____

A

Before the company in the general meeting and open to inspection by any member

91
Q

Cost accountant shall be appointed by ____ on such remuneration as may-be determined by the _____

A

Board on such remuneration as may-be determined by the members

92
Q

Report of the audit of cost records shall be submitted by the cost accountant to the _____

A

Board of Directors of the company

93
Q

An auditor shall render only those services that are approved by ?

A
  1. Board of Directors , or
  2. Audit Committee
94
Q

remuneration of first directors is fixed by ?

A

Board of Directors

95
Q

Remuneration of subsequent directors is fixed by ?

A

members at general meeting

96
Q

Auditors of a holding company shall have the right to access the records of SOH and AOH only if ?

A

Required for consolidation of financial statements

97
Q

Auditors submit their report to ?

A
  1. Members of the company
  2. CAG- in case of the Government Company
98
Q

The Company shall inform the auditor of his appointment and file a notice of such appointment with the Registrar within ?

A

15 days of the meeting in which the auditor is appointed

99
Q

______ will prescribe the manner in which companies shall rotate their auditor ?

A

The Central Government

100
Q

_____ may resolve that the audit shall be conducted by more than one auditor

A

The members of the company

101
Q

____ may resolve that the auditing partner and his team shall be rotated at such intervals AS MAYBE RESOLVED BY MEMBERS

A

Members of the company

102
Q

Where at any AGM , no auditor is appointed or re-appointed

A

The existing auditor shall continue to be the auditor of the company .

103
Q

The auditor appointed by a company shall be removed by ?

A
  1. Special Resolution after obtaining the approval of the Central Government .

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