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Case study 2

Total questions: 19

Worksheet time: 25mins

Name
Class
Date
1.

HSNBC Ltd. company plans to raise ` 10 crores by issuing debentures. The Board of

Directors have some queries. Please advise them on the following


Can they issue irredeemable debentures?

a)

Yes

b)

No

c)

Depends on the Registrar of Companies

d)

With permission of SEBI

2.

HSBNC Ltd. company plans to raise ` 10 crores by issuing debentures. The Board of

Directors have some queries. Please advise them on the following


Can they issue irredeemable debentures?

a)

Yes

b)

No

c)

Needs to have a provision in its AOA

d)

Needs sanction of SEBI

3.

HSBNC Ltd. company plans to raise ` 10 crores by issuing debentures. The Board of

Directors have some queries. Please advise them on the following


As the company is offering debentures to its members, can such debentures have normal

voting rights ?

a)

Yes

b)

No

c)

Debentures need to have equality

4.

Schefi financial Ltd plans to raise ` 10 crores by issuing secured, Non-convertible debentures.

However, as per the Articles of Association, the board of directors have authority onlyto raise upto 5 crores.

They are also considering whether to go for private placement or

make public offer. Please advise them on the following


What can be the maximum tenure of the debentures to be issued ?

a)

20 years

b)

15 years

c)

10 years

d)

25 years

5.

Morgan Danley Financial Ltd plans to raise ` 10 crores by issuing secured, Non-convertible debentures.

However, as per the Articles of Association, the board of directors have authority only to raise upto 5 crores. They are also considering whether to go for private placement or

make public offer. Please advise them on the following


b. Is the proposed issue within the borrowing powers of the board ?


a)

Yes

b)

No

6.

MIDSE financial plans to raise ` 10 crores by issuing secured, Non-convertible debentures.

However, as per the Articles of Association, the board of directors have authority only to raise upto 5 crores. They are also considering whether to go for private placement or

make public offer. Please advise them on the following


Within what period should company issue Debenture certificate ?

a)

12 months from date of issue

b)

2 months from date of allotment

c)

3 months from date of allotment

d)

6 months from the date of allotment

7.

Pficher Ltd. plans to raise funds through Public Deposits. It’s net worth is 10 Crores.


Can they accept deposits from the public

a)

Yes

b)

No

8.

Woodland Inchi Ltd. plans to raise funds through Public Deposits. It’s net worth is10 Crores.


Can they accept deposits which matures after 4 years.

a)

Yes

b)

No

9.

Inisha BioT Ltd. plans to raise funds through Public Deposits. It’s net worth is 10 Crores.


Within what period should the company issue deposit Receipt to it’s depositors ?

a)

30 days

b)

15 days

c)

2 months

d)

21 days

10.

Good Sense 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 ?

a)

Yes

b)

No

11.

Good Sense Ltd. is an eligible Public Company as per the Companies Act, 2013 with

reference to accepting Public Deposits.


Can the company accept deposits from it’s members ?


a)

Yes

b)

No

c)

If permitted by AOA

d)

If permitted by MOA

12.

Good Sense Ltd. is an eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits.


Can the company issue secured deposits ?

a)

Yes

b)

No

c)

Depends on the provisions of Companies Act, 2013

d)

Depends on Registrar of Companies

13.

Alcatel Incia Ltd. is an eligible Public Company. It plans to raise secured deposits

from the public. Please advice its Board on the following.


Does the company need to get shareholders approval for accepting deposits ?

a)

Yes

b)

No

14.

Xylo DIN Ltd. is an eligible Public Company. It plans to raise secured deposits from the public. Please advice its Board on the following.


Does the company have to appoint a Debenture Trustee ?

a)

Yes

b)

No

15.

Ziniesta Ltd. is an eligible Public Company. It plans to raise secured deposits

from the public. Please advice its Board on the following


Within what period should the company create a charge on it’s assets ?

a)

20 days of acceptance of deposit

b)

21 days of acceptance of deposit

c)

30 days of acceptance of deposit

d)

1 month of acceptance of deposit

16.

SUN Pharma Pvt. Ltd. company wants to raise funds through deposits.

Can the company accept deposits from the public ?

a)

Yes

b)

No

17.

SUN Pharma Pvt. Ltd. company wants to raise funds through deposits.

Which document should the company issue to invite deposits ?

a)

Advertisement

b)

Letter by Registered Post

c)

email

d)

circular

18.

SUN Pharma Pvt. Ltd. company wants to raise funds through deposits.

What is the maximum period for which they can accept deposits ?

a)

6 months

b)

3.5 years

c)

36 months

d)

48 months

19.

SUN Pharma Pvt. Ltd. company wants to raise funds through deposits.


Can the company raise deposits from Banks and financial institutions?

a)

Yes

b)

No