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for those who are doing MBA from Symbiosis Center for Dis tance Learning.This will help you to get scdl solved papers, scdl solved assignm ent, scdl papers and scdl examination papers for all subject.It help you to qual ify scdl Assignments as well as in final scdl Examination of PGDBA, PGDBM, PGDBI T.The content of this blog is very authentic, pure and innovative.I have covered old as well as new question and those question which is not asked yet. Search This Blog Loading... Get Latest deal for FREE KAA MAAL Get Latest deal for FREE KAA MAAL Wecome to all SCDLians Hello Guys, i am requesting to all audience of this blog to like any thing that should be available for other students so please co-operate me and if you have a ny test papers as latest as that could be published with your reference. Please send with your name at the e-mail skdwivedi2009@gmail.com Thank You !! Friday, February 24, 2012 Legal Aspect of Finance shared by Niharika Legal Aspect Of Finance Notes(Shared by Niharika Bhagat) 1. The charges requiring registration with ROC are * A charge on uncalled share capital * A change for purpose of securing any issue of debentures * A charge on any immovable property 2. The central government may exempt any class of companies from compliance w ith any of the requirements in Schdule VI. True 3. The maximum rate of interest on the loan availed by a person resident in I ndia from a no- resident india is two percentage over the bank rate 4. The salary drawn by Mr. Shamkar is Basic 5,00, DA Rs 4,000, HRA Rs. 1000. The employer s share of contribution to Provident fund is Rs. 900 5. The Balance Sheet and Profit and Loss Account shall be approved by the Boa rd of Directors after they are signed on the behalf of Board False 6. The maximum fine for not giving a copy of the balance sheet within 7 days to the person entitled to it is - Rs. 5,000 7. A company having paid up share capital of Rs.50 lakhs or more can appoint a sole selling agent 8. Match *

Allocable surplus more than bonus payable * *

Carry Forward for set on

Allocation surplus less than bonus payable Carry forward for set off Allocation surplus is equal to bonus payable No question of set on or set of f * Allocation surplus more than onus payable No considered for set on or set of f 9. In the case Ball v/s William hunt, it was help that, incapacity for work cludes inability to get work 10. Banks maintaining NRE accounts are permitted to grant loans in india to th e account holders * For personal purposes * For acquisition of house in india for his own residential use. 11. Gratuity shall be payable to an employee on his * Superannuation * Retirement or resignation * Death or disablement 12. The maximum fine for not preserving the records for 8 yrs 13. If the paid up capital of all companies is more than Rs. 25 lacs each, the maximum number of companies that a person can audit is ten 14. Insurance of employer s liability to pay gratuity under the act is compulsor y , if the number of employees is less than 100. False 15. An apprentice is not entitled to bonus True 16. The books of account of every company relating to a period of not less tha n eight years immediately preceding the current year shall be preserved in the g ood order. 17. A person resident in india is free to send (export) any gift article of va lue not exceeding -5,00,000. 18. If an employer avoids payment of gratuity he can be punished with an impri sonment upto a maximum period of - Six months 19. Of the three copies received by him , ROC will return one copy and another copy to Charge Holder. 20. These do not fall under the category of person resident in India. 10,000 in

* A person who has gone out of india or has taken up employment outside indi a. * Body corporate register in india * A branch or agency in india owned or controlled by a person resident outsi de india. 21. If the number of person employed is more than one thousand , the wages sha ll be paid before the expiry of the tenth day. 22. The Committee for fixing minimum wages shall consist of persons representi ng the * Employers * Employees * Independent persons 23. An auditor checks each and every transaction. 24. The following are not included in the basic wages * HRA * Bonus 25. Nomination facility can be availed by * A share holder * A depositor 26. A retrenched employee is eligible to get bonus provided he has worked for a minimum qualifying period. True 27. If the salary payable is weekly on every Saturday and if the number of emp loyees is less than 1,000 the last date for payment of wages for the period endi ng on 27-10-2007 will be 3-Nov-07 28. Balances in NRO accounts are not eligible for remittance outside India wit hout the approval of the Reserve Bank of India 29. Reserve bank of india has issued Export Regulations which are effective fr om 1st June,2000 30. These sectors require prior approval of Government for FDI * Activities/items that require an industrial License. * True

Proposals for acquisition of shares in an existing Indian company in Finan cial services sector. * All proposals falling outside notified sectoral policy 31. ESI Corporation makes regulations for * The manner and time for payment of contribution * The entry in or upon books or cards of particulars of contribution paid an d benefits distributed. * The issue, safe custody, production , inspection and delivery of books or cards. 32. Foreign exchange for travel abroad can be purchase from banks against rupe e payment in cash upto Rs. 50,000/33. The maximum amount of fine for violation of provisions of payment of bonus Act Rs. 1,000 34. A housing finance institution in india approved by National Housing bank c resident Indian. False annot provide housing loan to a non 35. The Functions of the debenture trustees shall generally be * To protect the interest of holders of debentures * To redress the grievances of holders of debentures 36. If the aggregate value of the foreign exchange in the form of currency not es,bank notes or travellers cheques brought in exceeds USD 10,00/- or its equiva lent and /or the value of foreign currency exceeds USD 5,000/- or its equivalent , it should be declared to the Customs Authorities at the Airport in the Currenc y Declaration Form 37. Preferences shares can be redeemed even if they are not fully paid up. Fal se 38. If an employer violates the provisions of Payment of Bonus Act, he can be punished with an imprisonment upto a maximum period of Six months 39. A company has availed a loan of Rs. 10 lacs and cash credit facility of Rs . 5 lacs. It has repaid the laon. After this the charge is modified 40. Foreign Exchange management Act authorises the RBI to make such regulation s as it may think fit to monitor the exports. 41. Foreign Investment in preference share fall outside the External Commercia l Borrowing(ECB) guidelines. True 42. A resident Indian going abroad for medical treatment abroad can purchase U S Dollar 1,00,000 without RBI s permission. 43. The Fund in RFC account are free from all restrictions regarding utilisati

on of foreign currency balances. True 44. Use of the International Credit Cards(ICCs)/ATMs/Debit Cards can be made f or * Making personal payments like subscription to foreign journals * For travel abroad * Meeting expenses while abroad 45. This Act authorizes the Central Government to formulate rules and regulati on fir withdrawal of exchange for imports FEMA 46. Type of chages Section 125 of Companies Act Date of notice of charge Section 126 of companies Act Registration of charges on properties acquired subject to charge Section 127 of Comapnies Act Register of charges to be kept by Registrar Section 130 of Companies Act 47. This institute assists Employees State Insurance Corporation to discharge i ts functions efficiently * Standing Committee * Medical Benefit council 48. If at the time of making a nomination, the employee has no family then the nomination may be made in favour of any person. True. 49. NRE accounts may be in the form of * Savings Accounts * Recurring Deposit Accounts * Current Accounts 50. Minimum wages must provide for * The bare sustenance of life * The prevention of efficiency of the worker * Some measure of education, medical requirement and amenities 51. Maximum Interest payable on gratuity is equal to 25% of gratuity payable 52. No individual FII/sub-account can acquire more than 10% of the paid up cap ital of an Indian company.

53. An Indirect tax Levied by Government on the goods manufactured in india is called as Excise Duty 54. The Preference shares be redeemed * Out of the proceeds of fresh issue of shares * Out of profits 55. The maximum % of net own funds that a company needs, to purchase the secur ities of other company is 60% 56. The Employees State Insurance Act,1948 provides for * Medical care and treatment * Payment of cash benefit during sickness * Pension to the dependents on the death of a worker due to employment injur y 57. An employee could not attend duty due to Bandh. The Action that can be tak en by the employer will be Treat the absence as authorised leave. 58. Mr. Vishal from Pune has received a guest from USA on tour to India. Mr. V ishal needs RBI permission to make expenses for his foreign guest False 59. The compensation can be denied under WC Act * If workman is under the influence of drink or drugs * If accident is caused due to wilful disobedience of rules or order * If there is disregard of safety devices. 60. This section of Central Excise Act,1944 deals with charging of Duty of Exc ise Section 3 61. Accounting standard are issued by ICAI 62. An Indian company, a proprietorship concern or a firm in india cannot acce pt deposits from a non- resident Indian on non- repatriation basis- False 63. The conditions applicable for the public deposits accepted by an Indian co mpany from a Non-Resident Indian are * The deposits are received under a public deposit scheme * The amount representing the deposit is received by inward remittance from outside India through normal banking channels * The company of aggregate deposits accepted by the company shall not exceed

35% of its net owned funds. Doubt 64. NRIs/PIOs can purchase/sell shares/convertible debentures of Indian compan ies on Stock Exchanges under Portfolio Investment Scheme 65. FDI in sectors/activities to the extent permitted under automatic route re quires prior approval either by the Government or RBI. False 66. The maximum contribution that an employer has to contribute to meet the ad ministrative expenses of the Deposit Linked Insurance fund is th if their contri bution to deposite Linked Insurance Fund. 67. The salary drawn by Mr. Shankar fir June 2007 is Basic Rs. 5,000/- DA Rs. 4,000/-,HRA Rs.1,000. During the month he was on leave without pay for 10days. T he total credit PF wil be Rs.600 68. The form for creation of a charge should be filed within 30 days from the date of execution of the document with the Registrar of Companies. 69. NRO account Interest is taxable NRE Account Interest is tax free FCNR(B) Account Exchange risk borne by the depositor FCNR(A) Account Scheme discontinued 70. If a part of an year is less than six months, then it will be treated as a full year for the purposes of payment of gratuity False 71. An employment in a factory or establishment to which the ESI Act applies i s called Insuable employment 72. The Employees Pension Scheme provides for * Superannuation pension * Widow or widower s pension * Children pension 73. The following sums shall be deducted from the gross profits as prior charg es for computation of allocable surplus for bonus * Depreciation * Employment rebate * Direct tax 74. The consignee abroad is not entitled to deduct the charges and his fee fro m the sale proceeds- false 75. A typical GDR is denominated in - US$ 76. The maximum amount that a company can contribute to charitable and other f

unds not directly relating to the business of the Company in terms of percentage of average profits is 5%. 77. The maximum limit in terms of percentage of its average net profits which may be contributed by a Company in any financial year is 5%. 78. Taking personal jewellery out of India is governed by Baggage Rules 79. A private company means * A company which has a minimum paid-up capital of one lakh rupees * A company which restricts the right to transfer its shares * A company which limits the number of this member fifty 80. A memorandum containing such salient features of a prospectus as may be pr escribed is called as abridge prospectus 81. These books of accounts are to be kept by the company * The profit and loss account * The auditor s report * The board s report 82. The Value on which the excise duty is payable as a percentage is called as nvoice Price 83. The date of agreement for a foreign Technical collaboration is 10-3-2000. The date of commencement if commercial production is 20-1-2002. The last date up to which payment of royalty can be made to the foreign collaborator would be -1/ 20/12 84. An individual resident in India may borrow from a non- resident Indian or a person of Indian origin on the following conditions * The loan should be in rupees * The amount borrowed shall not be allowed to be repatriated outside india * The period of loan shall not exceed three years 85. A workman has worked for 250 days on daily wages basis. Daily wages paid t o him is Rs. 30,000/-, the average monthly wages for the purpose of compensation will be 3,600 86. A person resident in india, who has acquired immovable property outside in dia may transfer it by way of gift to his relative who is a person resident in I ndia. True 87. A company should give intimation of appointment to every auditor within 7 days of appointment. I

88. Any trade settlements can be freely made through Rupee accounts of Bhutane se and Nepalese nations. 89. Preference shares can be * Cumulative Redeemable Preference shares * Non-cumulative Redeemable Preference shares 90. Certificate from statutory Auditors or chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident ou tside india should be send to RBI.- True 91. The maximum deduction from salary is 50% if the recovery of co-operative s ociety is not involved. 92. The salary drawn by Mr. Shankar is Basic Rs. 5,000/- , DA Rs. 4,00/- HRA R s. 1,000. The total credit to PF will be Rs. 900/93. In case of death of an employee, the amount of balance in EPF account is p aid to nominee/legal heirs.- True 94. A company can keep books of account at any other place than the registered office of the company True 95. Employer s contribution to EPF as % of eligible wages 10% Interest payable by employer for delayed payment of EPF 12% Employer s contribution to Pension Fund as % of eligible wages 8.33 % Employer s contribution to Deposit Linked Insurance Fund as % of eligible wages 96. For the purpose of the section 9 of the Excise Act, a fact is said to be p roved only when * The Court believes it to exist 97. Deductions made by the employer from the salary payable to employee which are authorised by the Payment of Wages Act are called as authorised deductions. 98. Every notification under clause(f) of the first proviso to sub-section(2) of 11B of the Excise Act shall be laid before each House of Parliament. 99. Provisions relating to Investment shall not relate to these companies * Insurance company * Housing company 100. A non-executive Chairman is not entitled to maintain a Chairman s office at the company s expense False 101.

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A foreign company can set up Liaison , Project and Branch Offices in India after obtaining approval from RBI 102. The EPF Act was accordingly extended to many additional industries by the end of March,1957. true 103. Besides authorised dealer, full-fledged money changers are also permitted to release exchange for business and private visits 104. Persons resident in india are permitted to maintain foreign currency accou nts in India. under the following schemes * EEFC Account * RFC Account 105. A charge which is not registered is void against these persons * Liquidators * Creditors 106. A company has to execute this document if the period of debenture redempti on exceeds 18 months. Trust Deed 107. However , it is also possible for an FII to declare itself a 100% debt FII in which case it can make its entire investment in debt instruments 108. Manager- Has the management of the whole or substantially the whole of the affairs of the company. Managing Director-Is entrusted with substantial power of management which would not be otherwise be exercisable by him Office-Included any director, manager or secretary Board-Means the Board of Directors of the policy formulation committee 109. A person resident in India is not free to hold, own, transfer or invest in foreign currency ,foreign security or any immovable property situated outside I ndia if such currency, security or property was acquired ,held or owned by such person when he was resident outside India or inherited from a person who was res ident outside India false 110. All pecuniary relationship or transactions of the non-executive directors vis--vis the company shall be disclosed in the annual report 111. Allocable surplus means 60% of the avaible surplus in an accounting year. 112. A person resident in india , not being a company incorporated in india, ma y borrow in rupees on non-repatriation basis from a non- resident Indian or a pe rson of Indian origin * The amount of loan shall be received by way of inward remittance from outs ide india *

The period of loan shall not exceed three years * The rate of interest on the loan shall not exceed two percentage points ov er the bank 113. No gratuity shall be liable to attachment in executing of any decree or or der of any civil, revenue or criminal court 114. Salary and wages does not include dearness allowance false 115. Words Internation Global Continental being the first nameWords Internation Global Continental being used within the name with bracketWord Hindustan, India, Bharat, being used within the name without bracketsFor use of word Enterprise within the name 116. The Reserve Bank has made Foreign Exchange Management Regulation ,2000 whi ch came into force 1st day of June 2000 117. FIIs are required to allocate their investment between equity and debt ins trument in the ratio of 70:30:00 118. In relation of any other establishment which is not a factory , the term e mployer includes the person who has the ultimate control over the affairs 119. Dependents include * A widow * A minor legitimate or adopted sin * An unmarried daughter 120. Premature withdrawal of FCNR(B) deposits for the purpose of opening NRNR R upee Deposit accounts with an authorised dealer other that the one with whom the account FCNR(B) is maintain, will attract penalty true 121. The company articles require a person to hold the qualification shares bef ore his appointment or to obtain them within shorter time than two months 122. The main purpose of the payment of wages act 1936 is to ensure * Regular and timely payment of wages to the employed person * To prevent unauthorized deductions being made from wages P 2 123. The ESI act extends to the whole of India 124. All payment made under the foreign investment and technology transfer incl udes the levy of cess under the Research and Development cess act,1986 true 125. Rate of interest applicable to these accounts shall be in accordance with the direction/instructions issued by Reserve bank from time to time 126. True

In connection with private visit abroad , viz., for tourism , etc. Foreign exchange upto USD 10,000, in any one calendar year may be obtained from an auth orised dealer 127. The court has to record reasons in writing for imposing lesser punishment 128. Contribution means the sum of money payable to the Corporation by the princi pal employer. 129. Any person resident outside India may open NRO account . 130. Main types of shares Equity shares, preference shares 131. A Liaison office can carry on only liaison activity 132. Import Licenses are for the CIF value and cannot be utilized to the full a mount to cover the FOB value of import. True 133. Nothing in the bonus act shall apply to any other financial institution ot her than a banking company which the central government may specify having regar d to * Its capital structure * Its objectives and the nature of its activities * The nature and extent of financial assistance or any concession given to i t by the government 134. Deduction may be on account of ce where he is required to work the absence of employed person from the pla

Such absence may be for whole or any part of the period during which he is so req uired to work An employed person shall be deemed to be absent if, he refuses to carry out his work- In pursuance of a stay or strike The amount of such deductions must bear to his wages the same proportion as - hi s absence bears to the total wage period 135. Words and expression defined in the industrial disputes act shall have same meaning in the bonus act 136. Debenture A secured Loan redeemable after a specified period Preference share-Preference in dividend and redemption Equity share- Residual shareholder Commercial Paper- Negotiable instrument to raise short term finance 137. A person who ultimate controls is the employer 138. The situation that investors could invest in equities of overseas listed f irms that hold at least 20% in a listed Indian firm which was made in terms of o ur A.P.(DIR series) Circualr No. 66 dated January 13,2003 continues as an additi onal facilit 139. The auditor s report shall state the

* Whether he has obtained all the information and explanations * Whether in his opinion, proper books of account as required by law have be en maintained 140. For the purpose of the section 9 of the Excise Act, a fact said to be prov ed only when * Court believes it to exist 141. Every Inquiry by the Excise authority shall be deemed to be a judicial pro ceeding within the meaning of section 193 and section 228 of the Indian Penal Co de. 142. Steps that might be Initiated by a debenture trustee * Ensure that the assets of the Company are sufficient to discharge the prin cipal amounts * Ensuring that the terms of prospectus are not inconsistent with the terms of the debentures * Call meetings of the debenture holders 143. Balance sheet or profit and loss account shall include any notes thereon o in documents annexed thereto 144. Offences under section 9 of the Excise act shall be deemed to be Non Cogni zable 145. GDR- global Depository Receipts are essentially those instrument , which p ossess a certain number of underlying- shares in the custody of depository bank 146. Form 8 & 13 creation of charge, modification of charge 147. No amount of foreign exchange can be remitted outside India to become elig ible or for earning point or credits for immigration. True 148. Any nomination made by an employee in favour of a person who is not the me mber of his family, shall be void.- true 149. In respect of job works under notification No. 214/86, the Merchant Manufa cturer is liable to pay the excise duty. r Posted by skdwivedi at Friday, February 24, 2012 Email ThisBlogThis!Share to TwitterShare to Facebook Labels: Legal Aspects of Finance Reactions: 1 comments: 1. AnonymousFebruary 27, 2012 1:16 AM

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