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WorksheetsCase Study SP XII Test 2
Total questions: 37
Worksheet time: 24mins
The Balance-sheet of a TISCO Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.
What type of source retained earning is ?
(a)
Violet Ltd. company plans to raise ` 10 crores by issuing debentures. The Board of Directors has some queries. Please advise them on the following :
b. Can they issue irredeemable Debentures
Yes
No
Diakini limited company proposes to issue debenture 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
Should the company appoint Deposit trustee ?
Yes
No
company's personal choice
need to ask registrar of companies
The Balance-sheet of a TISCO Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.
c) What type of source retained earning is ?
Borrowed Capital source
Share Capital source
Internal financing
Escorts Motor Ltd. Company’s capital structure is made up of 1,00,000 Equity shares having face value of ` 10 each. The company has offered to the public 40,000 Equity shares and out of this, the public has subscribed for 30,000 Equity shares. State the following in
a) Authorised capital
(a)
Escorts Motor Ltd. Company’s capital structure is made up of 1,00,000 Equity shares having face value of ` 10 each. The company has offered to the public 40,000 Equity shares and out of this, the public has subscribed for 30,000 Equity shares. State the following in
c. Issued Capital
(a)
Escorts Motor Ltd. Company’s capital structure is made up of 1,00,000 Equity shares having face value of ` 10 each. The company has offered to the public 40,000 Equity shares and out of this, the public has subscribed for 30,000 Equity shares. State the following in
b. Subscribed capital
(a)
Violet Ltd. company plans to raise ` 10 crores by issuing debentures. The Board of Directors has some queries. Please advise them on the following :
c. As the company is offering debentures to its members, can such debentures have normal voting rights ?
Yes
No
The Balance-sheet of a Tisco Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.
Can the retained earnings be converted into capital ?
Yes
No
Mr. Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and does not want to take any risk. He is interested in definite rate of income and safety of principal.
a) Name the type of security that Mr. Rohit will opt for ?
(a)
Mr. Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and does not want to take any risk. He is interested in definite rate of income and safety of principal
c.The return on investment which he receives is fixed or fluctuating ?
Fixed
Fluctuating
The Balance-sheet of a TISCO Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.
Is Company Financially sound ?
Yes
No
Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely.
b. What does he receive as return on investment ?
Interest
Discount
Dividend
Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely.
a. According to you which type of share Mr. Satish will choose to invest ?
(a)
Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely.
c. State any one right which he will enjoy as a shareholder
receive dividend
receive interest
participate in management
voting rights
Sushma owns 100 shares while Reshma owns 500 shares of Crompton Ltd. The company has asked all its shareholders to pay the balance unpaid amount of ` 20. Sushma pays the full money demanded by the company. , Reshma who is in a bad financial position is unable to pay any money.
a) Can the company forfeit the shares of Sushma ?
Yes
No
Reliance Ltd. Company has recently come out with its public offer through FPO. Their issue was over subscribed. The Board of Directors now wants to start the allotment process. Please advise the Board on :
a) Should the company set up allotment committee ?
Yes
No
Reliance Ltd. Company has recently come out with its public offer through FPO. Their issue was over subscribed. The Board of Directors now wants to start the allotment process. Please advise the Board on :
Within what period should the company issue share certificate ?
Within one months from date of allotment
Within two months from date of allotment
Within six months from date of allotment
Mr. Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and does not want to take any risk. He is interested in definite rate of income and safety of principal.
b. What does he receive as return on his investment ?
(a)
Sushma owns 100 shares while Reshma owns 500 shares of Crompton Ltd. The company has asked all its shareholders to pay the balance unpaid amount of ` 20. Sushma pays the full money demanded by the company. , Reshma who is in a bad financial position is unable to pay any money.
a) Can the company forfeit the shares of Reshma ?
Yes
No
Sushma owns 100 shares while Reshma owns 500 shares of Crompton Ltd. The company has asked all its shareholders to pay the balance unpaid amount of ` 20. Sushma pays the full money demanded by the company. , Reshma who is in a bad financial position is unable to pay any money.
a) Can Sushma transfer her shares
Yes
No
Reliance Ltd. Company has recently come out with its public offer through FPO. Their issue was over subscribed. The Board of Directors now wants to start the allotment process. Please advise the Board on :
How should the company inform the applicants to whom the company is alloting shares ?
Ordinary Post
Registered Post
The Balance-sheet of a Astro-Netix Company for the year 2018-19 reveals equity share capital of Rs. 50,00,000 and retained earnings of Rs. 75,00,000.
b) Can the retained earnings be converted into capital ?
Yes
No
The Balance-sheet of a Astro-Netix Company for the year 2018-19 reveals equity share capital of Rs. 50,00,000 and retained earnings of Rs. 75,00,000.
a) Is the company financially sound
Yes
No
TRISO Ltd. Company is newly incorporated public company and wants to raise capital by selling Equity shares to the public. The Board of Directors are considering various options for this. Advise the Board on the following matters :
a) What should the company offer - IPO or FPO ?
(a)
TRISCO Ltd. Company is newly incorporated public company and wants to raise capital by selling Equity shares to the public. The Board of Directors are considering various options for this. Advise the Board on the following matters :
c) Can the company enter into Underwriting Agreement ?
Yes
No
VFX Ltd. has made a demand on its shareholders to pay the balance unpaid amount of ` 20/- per share (having a face value of ` 100) held by them. The company has sent letters asking the shareholders to pay the money to its Bankers within the specified time.
a) Are the shareholders liable to pay ` 20 for the shares held by them ?
Yes
No
VFX Ltd. has made a demand on its shareholders to pay the balance unpaid amount of ` 20/- per share (having a face value of ` 100) held by them. The company has sent letters asking the shareholders to pay the money to its Bankers within the specified time.
b) Name the letter sent by the company to its shareholders asking them to pay ` 20/-
(a)
VFX Ltd. has made a demand on its shareholders to pay the balance unpaid amount of ` 20/- per share (having a face value of ` 100) held by them. The company has sent letters asking the shareholders to pay the money to its Bankers within the specified time.
c) What happens if a shareholder fails to pay the money within the specified time ?
Shares liable to Surrender
Shares liable to Transfer
Shares liable to Forfeiture
Red Chillies 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 ?
Yes
No
Red Chillies 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 create a charge on its assets ?
Yes
No
TRISO Ltd. Company is newly incorporated public company and wants to raise capital by selling Equity shares to the public. The Board of Directors are considering various options for this. Advise the Board on the following matters :
b) Can the company offer Bonus Shares to raise its capital ?
Yes
No
Red Chillies 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 :
c. Can the tenure of Debentures issued be less than ten years ?
Yes
No
DDS Financial plans to raise ` 10 crores by issuing Secured, Non-convertible debentures. However, as per the Articles of Association, the Board of Directors has 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
a. What can be the maximum tenure of the debentures to be issued ?
10 years
20 years
15 years
DDS Financial plans to raise ` 10 crores by issuing Secured, Non-convertible debentures. However, as per the Articles of Association, the Board of Directors has authority only to raise up to 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 of Directors?
Yes
No
DDS Financial plans to raise ` 10 crores by issuing Secured, Non-convertible debentures. However, as per the Articles of Association, the Board of Directors has 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:
c. Within what period should company issue Debenture certificate ?
6 months of Debenture Allotment
60 Days of Allotment of Debentures
within 6 months of allotment of debentures.
Violet Ltd. company plans to raise ` 10 crores by issuing debentures. The Board of Directors has some queries. Please advise them on the following :
a. Can the company issue unsecured debentures?
Yes
No
