ICSI Previous Year Question papers Governance Business Ethics and Sustainability

ICSI Previous Year Question papers

CS Professional Programme Module IV

Governance Business Ethics and Sustainability

June 2010

Time allowed : 3 hours

 Maximum marks : 100
Total number of questions : 8
P A R T — A

(Answer Question No. 1 which is compulsory and any two of the rest from this part.)

1. (a) “The silver lining in the Satyam episode is that it has opened a window of opportunity
for corporate governance reforms in the country. Even though there has been a
failure of the checks and balances in corporate governance, this crisis provides a
great opportunity to rebuild our governance framework and regulatory control.”
In the context of this statement, examine the issues and challenges in corporate
governance with special reference to the role of independent directors.                 (10 marks)
(b) State, with reasons in brief, whether the following statements are correct or incorrect:
(i) An independent director is a director who has been an executive of the company
in the immediate preceding three financial years.
(ii) Organisation for Economic Co-operation and Development (OECD) is not
connected with corporate governance.
(iii) Insurance is a method of risk avoidance.
(iv) In India there is no legal requirement for separation of the role of the Chairman
and Chief Executive Officer.
(v) Shareholders Grievance Committee is a non-mandatory committee.       (2 marks each)

2. (a) Write notes on any two of the following :
(i) Role of Company Secretary in ensuring risk management
(ii) Corporate governance in public sector undertakings
(iii) The Greenbury Report.           (5 marks each)
(b) Describe composition of the ‘audit committee’ and ‘remuneration committee’ as per
clause 49 of the listing agreement.                     (5 marks)

3. (a) “The Chairman’s primary responsibility is to lead the Board and ensure its
effectiveness.” Elucidate this statement.         (5 marks)
Governance Business Ethics and Sustainability
(b) Discuss the principles of corporate governance evolved by the Institute of Company
Secretaries of India.              (5 marks)
(c) “Corporate Social Responsibility (CSR) is also called corporate citizenship or corporate
responsibility.” Discuss.      (5 marks)

4. (a) Describe briefly any three of the following :
(i) Barriers to ‘visionary leadership’.
(ii) Social accountability and the ‘AA 1000’.
(iii) Diligence report in banks.
(iv) Scope of work of the Asian Corporate Governance Association.        (3 marks each)
(b) Describe and differentiate ‘risk reduction’ and ‘risk retention’.        (6 marks)
P A R T — B
(Answer ANY TWO questions from this part.)

5. (a) You are the Company Secretary of Universal Development Ltd. The company
often faces ethical dilemma. The Board wants to circulate a guidance note for its
managers to resolve ethical dilemma. Draft guidance note for the consideration
and approval of the Board.               (7 marks)
(b) Write notes on any two of the following :
(i) Ethics in finance
(ii) Ethics training and communication
(iii) Stakeholder orientation.                              (4 marks each)

6. (a) Explain the Clarkson principles of stakeholder management.         (5 marks)
(b) “A commitment by corporate management to follow an ethical code of conduct
confers a variety of benefits.” What are these benefits ?      (5 marks)
(c) What is ‘social and ethical accounting’ ?    (5 marks)

7. (a) Elaborate the various ‘ethics philosophies’.      (5 marks)
(b) “An organisation’s structure is important to the study of business ethics.” Comment.     (5 marks)
(c) Explain and differentiate ‘ethical decisions’ and ‘ethical dilemma’.       (5 marks)
P A R T — C

8. Attempt any four of the following :
(i) Write note on ‘life cycle assessment’.
(ii) Discuss the concept of ‘sustainable development’.
(iii) What is the main function of ‘global reporting initiatives’ ?
(iv) State any five principles of Rio Declaration on Environment and Development.
(v) Once the activity carried out by any person is hazardous or inherently dangerous,
the person carrying on such activity is liable to make good the loss caused to any
other person by his activity. Whether in such case the plea that reasonable care
was taken while carrying out such activity is valid ? Discuss in the light of
decided case law.        (5 marks each)

ICSI Previous Year Question papers Governance Business Ethics and Sustainability

ICSI Previous Year Question papers

CS Professional Programme Module IV

Governance Business Ethics and Sustainability

June 2012

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
PART — A
(Answer Question No.1 which is compulsory and any two of the rest from this part.)
1. (a) “Corporate governance extends beyond corporate law. Its fundamental objective is not
mere fulfilment of the requirements of law, but in ensuring commitment of the Board
of directors in managing the company in a transparent manner for maximising stakeholders’
value.” In the light of this statement, discuss the various factors which add greater value
through good governance.      (10 marks)
(b) State, with reasons in brief, whether the following statements are true or false :
(i) As per clause 49 of the listing agreement, the Chairman of the audit committee
shall be an independent director.
(ii) Global Corporate Governance Forum was founded by the World Bank.
(iii) A company is required to file the shareholding pattern with the stock exchange on a quarterly basis.
(iv) Filing of CSR e-form is mandatory for all the listed companies.
(v) Mutual funds are institutional investors.            (2 marks each)

2. (a) Write short notes on any three of the following :
(i) Price sensitive information
(ii) Corporate governance in public sector undertakings
(iii) Corporate Communication Officers (CCOs)
(iv) National Foundation for Corporate Governance.         (3 marks each)
(b) “Companies are not entirely free to decide on how they shall handle their risks.” Discuss
this statement in the light of clause 49 of the listing agreement.          (6 marks)
Governance, Business Ethics and Sustainability

3. (a) “Within the broader concept of corporate social responsibility (CSR), the concept of
triple bottom line (TBL) is gaining recognition.” Discuss the need to apply the concept
of TBL.          (5 marks)
(b) Describe briefly the need and advantages of committee management. Name the
committees which are to be constituted for good corporate governance.         (5 marks)
(c) Prepare a Board note on ‘internal control’ highlighting the elements of sound internal
control system for a company.         (5 marks)
4. (a) Organisation for Economic Co-operation and Development (OECD) defines corporate
governance as — “a system by which business corporations are directed and controlled.”
In the light of this statement, enumerate the principles of corporate governance as evolved
by OECD.            (6 marks)
(b) Discuss briefly any three of the following :
(i) Evidence of corporate governance from Arthashastra
(ii) Related party transactions
(iii) Sarbanes-Oxley Act, 2002
(iv) Chief Executive Officer (CEO).              (3 marks each)
PART — B
(Answer ANY TWO questions from this part.)
5. (a) “Companies displaying a clear commitment to ethical conduct consistently outperform
companies that do not display ethical conduct.” Discuss this statement highlighting the
advantages of business ethics.          (6 marks)
(b) Discuss briefly any three of the following :
(i) Ethics audit
(ii) Activity analysis
(iii) Ethics in human resources
(iv) Enlightened egoism.               (3 marks each)

6. (a) You are the Company Secretary of Great Fortunes Ltd. Prepare a Board note on the
role of Board of directors in ethical decision-making.             (5 marks)
(b) “Stakeholder analysis is the identification of a project’s/activity’s key stakeholders, an
assessment of their interests and the ways in which these interests affect project’s riskiness
and viability.” Elaborate the statement.        (5 marks)
(c) Elaborate the factors that indicate the success of an ethics programme.        (5 marks)

7. (a) “An organisation’s structure is a significant factor to the study of business ethics.”
Comment.     (5 marks)
(b) Discuss briefly the Caux Round Table (CRT) and its principles of business.  (5 marks)
(c) Explain the concept of ‘whistle blower’.    (5 marks)
PART — C

8. Attempt any four of the following :
(i) “It is not possible to adopt a policy of not having any chemical or any other hazardous
industries merely because they pose hazards or risks to the community.” Discuss this
statement in the light of Supreme Court decisions. (5 marks)
(ii) “The areas of improvement listed in the ‘Preamble’ of the International Labour
Organisation (ILO) in 1919 remain relevant even today.” Discuss and state these areas. (5 marks)
(iii) Discuss the quantitative methods used to assess the sustainability.    (5 marks)
(iv) Narrate briefly the relationship between corporate sustainability and corporate social
responsibility.   (5 marks)
(v) “The reporting organisation should identify its stakeholders and explain in its sustainability
reporting how it has responded to their reasonable expectations and interests.” Elucidate
this statement by considering stakeholders’ inclusiveness. (5 marks)

ICSI Previous Year Question paper Due Diligence and Corporate Compliance Management

ICSI Previous Year Question papers

CS Professional Programme Module IV

Due Diligence and Corporate Compliance Management

June 2012

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
NOTE : Answer SIX questions including Question No.1 which is compulsory.

1. (a) State, with reasons in brief, whether the following statements are true or false :
(i) Due diligence is concerned with historical financial statements and provides an
opinion as to whether the financial statements represent a ‘true and fair’ view of
the company’s operations.
(ii) As per the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations,
2011, any person aggrieved by an order of SEBI may prefer an appeal to the High Court.
(iii) Neeraj holds 1.95% of the share capital of Sunrise Ltd. If he wishes to enter
into a contract with Sunrise Ltd., he will be required to comply with section 299
of the Companies Act, 1956.
(iv) Rajesh, a shareholder of Rosa Ltd. requested for copies of the register under
section 301 of the Companies Act, 1956. His request was turned down stating
that as the register contains details about interest of directors and contracts in
which they are interested, it is confidential and copies cannot be given.
(v) Where the validity period of an instrument of transfer of shares has expired, the
holder may make an application to the prescribed authority for extension of its
validity.          (2 marks each)
(b) Critically examine and comment on the following :
(i) The scope of a search report depends upon the requirements of the bank or
financial institution concerned.
(ii) Dematerialisation is a process of conversion of physical certificates into electronic
balances. Before the process of dematerialisation is set in motion some essential
pre-requisites need to be considered.         (5 marks each)
Due Diligence and Corporate Compliance Management

2. (a) Write the most appropriate answer from the given options in respect of the following :
(i) As per the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009,
for raising of funds through public issues, the responsibility of ensuring that the
basis of allotment is fair and proper lies with —
(a) Bankers to the issue
(b) SEBI
(c) Executive director or managing director of the designated stock exchange
(d) Brokers to the issue.
(ii) American Depository Receipts (ADRs) that do not qualify or are not intended to
be listed on stock exchanges are referred to as —
(a) Level 1 ADRs
(b) Level 2 ADRs
(c) Level 3 ADRs
(d) Both (b) and (c) above.
(iii) The compensation committee with respect to Employee Stock Option Scheme
(ESOS) shall frame suitable policies and systems to ensure that there is no
violation of —
(a) SEBI (Merchant Bankers) Regulations, 1992
(b) SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
(c) SEBI (Prohibition of Insider Trading) Regulations, 1992
(d) None of the above.
(iv) Mergers and acquisitions in unrelated industries are called —
(a) Horizontal mergers
(b) Vertical mergers
(c) Conglomerate mergers
(d) Cogeneric mergers.
(v) As per clause 35 of the listing agreement, a company is required to file the share
holding pattern with the stock exchange on —
(a) Monthly basis
(b) Quarterly basis
(c) Half-yearly basis
(d) Annual basis.
(vi) If the articles of association of the company do not have provision for capitalisation
of reserves, then required resolution should be passed in a general meeting for
making the provision and the same is to be filed with the Registrar of
Companies in —
(a) e-Form 2
(b) e-Form 5
(c) e-Form 23
(d) e-Form 32.
(1 mark each)
(b) Distinguish between the following :
(i) ‘Derived instruments’ and ‘benchmarked instruments’.
(ii) ‘Rights issue’ and ‘private placement’.                                     (5 marks each)

3. (a) Sun Ltd. and its group company Moon Ltd. acquired shares of Oasis Ltd. (the target
company) over a period of time. On 29th October, 2011, Sun Ltd. and Moon Ltd.
were holding 14.85% and 2.56% shares respectively of the target company. Both these
companies want to further acquire shares in the target company. Can these companies
freely acquire further shares in the target company as per the SEBI (Substantial Acquisition
of Shares and Takeovers) Regulations, 2011 ? Elaborate.
(6 marks)
(b) Ashok purchased 4,000 shares of Uttam Sugar Mills Ltd. from Birendra on the faith
of a share certificate held in his name. Ashok tenders to the company a transfer deed,
duly executed, along with Birendra’s share certificate for transferring the shares in his
name. The company discovers that the certificate in the name of Birendra is forged
one and, hence, refused to register the transfer. As a Practising Company Secretary,
what course of action would you suggest to Ashok ?              (5 marks)
(c) Ajoy Ltd. owns 38% shares of Bijoy Ltd. On 26th November, 2010, Ajoy Ltd. sent
the requisition to Bijoy Ltd. for convening an extra-ordinary general meeting (EGM)
with the objective of appointing two new directors and removal and replacement of one
director on the Board of Bijoy Ltd. Bijoy Ltd. questioned the validity of requisition
on the ground that though it was signed by the Company Secretary of Ajoy Ltd., but
specific authorisation by Board resolution to file such requisition had not been annexed,
so it requested Ajoy Ltd. to send the Board resolution. Ajoy Ltd. sent a copy of resolution
passed earlier on 29th November, 2006 under which specific authority was given to its
Company Secretary to sign all legal documents.
However, Bijoy Ltd. decided for not convening the EGM as the required Board resolution
was not received by it and informed Ajoy Ltd. accordingly. Ajoy Ltd. in turn initiated
the process under section 169(6) of the Companies Act, 1956 for convening EGM on
its own on 17th January, 2011.
Decide the validity of the requisition dated 26th November, 2010 and calling of EGM
on 17th January, 2011 by Ajoy Ltd. citing relevant provisions of law.                          (5 marks)
4. (a) Satya Infotech Ltd. established under the Companies Act, 1956 is planning to raise funds
from Euro market through issue of GDRs. The Board of directors of the company
seek your advice about the steps involved in the process of GDR issue. Advise.        (6 marks)
(b) Shruti Cement Ltd., a listed company declared 10% dividend in the annual general meeting
held on 30th September, 2011 for the year 2010-11. Indicate the time limit for payment
of the dividend. Also state the circumstances when a company will not be deemed
to have committed any default even if it does not pay the amount of dividend within
the prescribed period.             (5 marks)
(c) Describe the role of a Practising Company Secretary in securities management and
compliances with respect to the Securities and Exchange Board of India Act, 1992.     (5 marks)
5. (a) Radha Cable Manufacturing Ltd. intends to issue shares under Employee Stock Option
Scheme (ESOS). The following details have been extracted from the records of the
company :
Face value of shares : `1
Exercise price : `150
Option exercisable : After 3 years
Current market price : `360
On the basis of above information —
(i) Determine the intrinsic value of the option.
(ii) Calculate the change, if any, in the intrinsic value of the option, if the exercise
price is `360 instead of `150.
(iii) How is the intrinsic value to be treated in company’s accounts ?
(iv) Calculate the value of perquisite of the option under section 17(2)(iii) of the
Income-tax Act, 1961.                 (6 marks)
(b) Surya Roshni Ltd. held its annual general meeting for the year 2010-11 on
30th September, 2011. However, as the accounts were not ready, the meeting transacted
all other businesses except accounts and adjourned the meeting to 16th December, 2011
for consideration of accounts. The Registrar of Companies issued show cause notice
to the company for violation of section 210 of the Companies Act, 1956. Advise the
company.                                       (5 marks)
(c) The Board of directors of a company decides to pay 2.5% of the issue price of the
debentures as underwriting commission to the underwriters. On the other hand, the articles
of association of the company permits only 2% commission. The Board of directors further
decides to pay the commission out of the proceeds of the debentures. Advise the company.   (5 marks)
6. (a) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) ‘Deal makers’ are those reports wherein the diligence team has not been able to
come across any violation leading them to submit what is called a ‘__________  report’.
(ii) A__________ is an issue of shares or of convertible securities by a company to
a select group of persons under section 81 of the Companies Act, 1956 which
is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital.
(iii) As per listing agreement, a company has to close its transfer books at least once
in a year at the time of __________if they have not been otherwise closed at any time during the year.
(iv) A depository participant is required to preserve its records and documents for a minimum period of__________.
(v) __________ is the process of conversion of existing assets or future cash flows into marketable securities.
(vi) The minimum fee for compliance certification for a company having a paid-up
share capital of `75,00,000 shall ordinarily not be less than `__________. (1 mark each)
(b) Narrate the procedure for investment for acquisition of a foreign company through bidding
or tender procedure.  (5 marks)
(c) Prepare a check-list for compliance certificate regarding transfer of unpaid amounts to
the Investor Education and Protection Fund. (5 marks)
7. (a) Explain the compliances required with regard to any two of the following :
(i) Cost audit and appointment of cost auditor.
(ii) Forfeiture and re-issue of shares.
(iii) Significance of corporate compliance management.
(4 marks each)
(b) Write notes on any two of the following :
(i) Disqualification for appointment as Practising Company Secretary
(ii) Risks on trading in debt securities
(iii) Inspection of register of members/debentureholders. (4 marks each)

8. Critically examine and comment on any four of the following :
(i) Compliance solution providers adopt systematic approach for creating or enhancing an
ethics and compliance program for companies in this age of information technology and
outsourcing.
(ii) A key step in any due diligence exercise is to develop an understanding of the purpose
for the transaction.
(iii) As per the SEBI (Issue and Listing of Debt Securities) Regulations, 2008, the debt issued
can be rolled over subject to certain conditions (compliances with respect to nonconvertible
debt instruments).
(iv) Issue of preferential allotments by unlisted companies is mainly governed by the Unlisted
Public Companies (Preferential Allotment) Rules, 2003.
(v) In the context of corporate governance, ethics is the intent to observe the spirit of
law — in other words, it is the expressed intent to do what is right.     (4 marks each)

ICSI Previous Year Question papers Advanced Tax Laws and Practice

ICSI Previous Year Question papers

CS Professional Programme Module III

Advanced Tax Laws and Practice

June 2009

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
NOTE : All references to sections mentioned in Part-A of the Question Paper relate to the
Income-tax Act, 1961 and relevant Assessment Year 2009-10, unless stated otherwise.
P A R T — A
(Answer ANY TWO questions from this part.)
1. (a) Choose the most appropriate answer from the given options in respect of the following :
(i) The benefit of amortisation of preliminary expenses under section 35D has been extended to ––
(a) Manufacturing companies
(b) Post-commencement preliminary expenses of service sector units
(c) Non-resident companies
(d) Non-resident individuals.
(ii) No disallowance under section 40(a)(ia) shall be made in the case of a deductor
in respect of expenditure incurred in the month of March, if the TDS on such
expenditure has been paid before —
(a) 31st December
(b) 30th September
(c) Due date for filing of the return
(d) 30 days from the date of tax deduction.
(iii) With effect from assessment year 2009-10, the rate of tax under sections
111A and 115AD, on short-term capital gains, arising from the transfer of
equity shares in a company or a unit of an equity oriented funds where such
transaction is chargeable to securities transaction tax (STT) is ––
(a) 20%
(b) 15%
(c) 10%
(d) 25%.
(iv) Depreciation on new plant acquired and kept as standby in anticipation of an
order of supply of goods is ––
(a) An allowable expenditure on an asset kept as standby
(b) Not allowable as asset acquired but not put to use
(c) Partly allowable
(d) None of the above.
Advanced Tax Laws and Practice
(v) Lease rental income derived by a foreign company, by leasing its immovable property situated at Ahmedabad, India, to another foreign company whose payment in US Dollars has been made outside India as per the agreement which is also executed outside India is ––
(a) An exempted income in India
(b) Chargeable to income-tax in India as it relates to property situated in
India, and deemed to accrue or arise in India
(c) Subject to DTAA agreement entered into by Indian government with
another country wherein foreign company is located
(d) None of the above.                  (1 mark each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) Expenditure incurred by a company after its incorporation and after its business
had been set-up, on development of website for conducting its business partly
through website could be considered as ___________ expenditure.
(ii) Interest on borrowed funds utilised for acquisition of an asset as part of
extension of business, could be capitalised till the asset __________________.
(iii) Subsidy received by a company operating a sugar mill, which could be utilised
only for re-payment of term loans taken by it for setting-up of new units and
extension of existing business would be treated as ______________.
(iv) Where there is a failure to deduct tax at source or to deposit the tax deducted
at source by a company, the company and the Principal Officer shall be
deemed to be an _________________ under section 201.
(v) Deduction in respect of contribution given by any person other than company
under section 80GGC of the Income-tax Act, 1961, to a political party is
_______________.          (1 mark each)
(c) “All companies are not liable to wealth-tax, even those which are liable have scope
for minimising it.” Comment.         (5 marks)

2. (a) State, with reasons in brief, whether the following statements are correct or incorrect :
(i) The cascading effect of dividend distribution tax is minimised in the case of holding and subsidiary companies.
(ii) The provisions of tax deduction at source do not apply to interest on corporate securities under certain circumstances.
(iii) An assessee can be asked to pay interest under section 234A for default in filing of return in time or for non-filing of return and also under section 234B for non-payment or short payment of advance tax even though there is overlapping of some period under the two provisions.
(2 marks each)
(b) A new weighted deduction has been introduced recently to encourage outsourcing
of scientific research. Explain briefly its scope, applicability and advantages from the tax planning point of view.        (5 marks)
(c) A company had taken some unsecured loans by way of inter-corporate deposits
(ICDs) from three other companies for use in its business and paid interest on
those ICDs, which were offered for taxation by the recipient companies.
The income-tax officer contends that the unsecured loans are taxable as deemed
dividends under section 2(22)(e). Can he do so ? Explain.         (4 marks)
3. (a) When will the ‘book profits’ of a company deemed to be the total income of the
company for the purposes of levy of minimum alternate tax (MAT) under section
115JB ?          (3 marks)
(b) Indicate briefly the points to be taken into account while preparing annual accounts
for the purpose of MAT.          (3 marks)
(c) The MAT does not apply to foreign companies operating in India. Do you agree ?
Give reasons.           (3 marks)
(d) What is ‘reverse mortgage’ ? Whether loan received under the scheme of reverse
mortgage amounts to income in the hands of borrower ? Whether mortgage of the
property under reverse mortgage is treated as transfer so as to attract capital
gains under section 45 ? Whether alienation of the mortgaged property by the
mortgagee for the purpose of recovering the loan would amount to transfer so as
to attract capital gains under section 45 ?             (6 marks)

P A R T — B
(Answer Question No.4 which is compulsory and any two of the rest from this part.)
4. (a) Choose the most appropriate answer from the given options in respect of the
following :
(i) The exemption notification issued under section 5A of the Central Excise Act,
1944 is not applicable in respect of DTA clearance, unless specifically provided
in the notification by —
(a) SSI unit
(b) EOU unit
(c) Both (a) and (b)
(d) None of the above.
(ii) Under the central excise law, any article, material or substance, capable of
being bought and sold for a consideration shall be deemed to be —
(a) Goods
(b) Manufactured
(c) Marketable and hence excisable
(d) Produced.
(iii) Questions arising out of orders made by CESTAT are appealable to High
Court except those relating to —
(a) Classification and valuation
(b) Duty drawback
(c) Refund of excise duty
(d) Advance ruling.
(iv) Value of export goods under the Customs Act, 1962 is not determined by —
(a) Transaction value
(b) Residual method
(c) Computed value
(d) Market value.
(v) The term ‘authorised representative’ under section 35Q of the Central Excise
Act, 1944 includes, among others —
(a) All Company Secretaries
(b) Company Secretaries with 10 years post qualification experience
(c) Company Secretaries with certificate of practice
(d) Physics graduates.
(vi) Under the Customs Act, 1962, an appeal before tribunal against the order of
Commissioner shall be filed within —
(a) 30 Days
(b) 3 Months
(c) 45 Days
(d) None of the above.
(vii) Smuggled goods are liable to confiscation —
(a) Only when they are in the same form
(b) Even when the form has changed or mixed with other goods
(c) Both (a) and (b)
(d) None of the above.
(1 mark each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) In case of fraud, collusion, willful mis-statement and suppression of facts, or
contravention of any provision of the Central Excise Act, 1944 or Rules with
intent to evade payment of duty, demand for duty can be raised ___________.
(ii) Rules made by the Central Government and regulation made by the Central
Board of Excise and Customs (CBE&C) can provide for penalty upto Rs.________
on any person who violates any provision of rules or regulations.
(iii) Persons claiming refund of excise duty under section 11B have to make an
application within ______________from the ‘relevant date’.
(iv) Under the Customs Act, 1962, duty, interest, penalty or fine to be rounded off
to ______________.
(v) The person from whom documents are seized is entitled to take ______ therefrom
in presence of customs officer.
(vi) Under section 46, an importer has to file a ___________ for home consumption
or warehousing.
(vii) Assessees paying duty of Rs.1 crore or more per annum through personal
ledger account (PLA) are required to submit annual financial information
statement for each financial year by 30th November of succeeding year in
prescribed form _____________.
(viii) ___________ can be granted in the case of lost, destroyed or abandoned goods
under section 23 of the Customs Act, 1962.      (1 mark each)
(c) Explain briefly the term ‘import manifest’.   (5 marks)
O R
A manufacturing company has imported certain second-hand machinery for its
use and declared its value on the basis of the ‘transaction value’. Can the declared
value be rejected by the authorities and, if so, when and how ? What are the
details which the importer must submit in support of its claim ?         (5 marks)

5. (a) Under section 37B of the Central Excise Act, 1944 and section 151A of the Customs
Act, 1962, the Central Board of Excise and Customs (CBE&C) issues various
orders, instructions and directions to its officers from time to time. What is their
binding effect ? Are they binding on all departmental authorities including
quasi judicial authorities like Commissioner (Appeals) ? Are there any restrictions
on such powers ? Can they have retrospective effect ?         (5 marks)
(b) Hetal manufactures hair dye. It is packed in pouches, each pouch containing
3 grams, 3 pouches (sachets) are sold in one packet. The net weight of each pouch,
as also the net weight of the commodity in 3 pouches and the maximum rate is
printed on the pouches. Examine whether the provisions of section 4A of the
Central Excise Act, 1944 will apply for the valuation purpose.
(5 marks)
(c) Commissioner of Central Excise can review the order but cannot issue fresh notice
extending period of limitation. Comment.           (5 marks)

6. (a) What are the options available, in the context of CENVAT credit rules, to a
manufacturer manufacturing both exempt and dutiable goods or service-provider
providing taxable as well as exempt services, in respect of inputs/input services
used partly for manufacture of dutiable goods/taxable services and partly for exempted
goods/services ?        (5 marks)
(b) Under certain circumstances, the central excise law allows an assessee to approach
the Central Government with a request to revise appellate orders passed by the
departmental authorities. Indicate the circumstances where such a possibility
exists and the powers of the Central Government in this regard.           (5 marks)
(c) Write a note on excise concession on export of excisable goods.      (5 marks)

7. (a) Pranav and Parul, the petitioners, were engaged in the business of import in
trading of textiles and some other consumable goods. During search, the statements
of both the petitioners were recorded and the petitioners were arrested for the
offence under sections 132 and 135 of the Customs Act, 1962 on account of alleged
false declaration, false documents and evasion of customs duty. Simultaneously,
adjudication proceedings were also initiated under the Act. The accused persons
were exonerated by the competent authority/tribunal in the adjudication proceedings.
Criminal proceedings were carried on simultaneously and petitioners were alleged
to have committed offences punishable under sections 132 and 135(1)(b). Whether
the criminal prosecution can be permitted to continue against both when the
adjudication proceedings are in favour of them ? Discuss.                       (5 marks)
(b) Eva Offshore Ltd. is engaged in drilling operations for exploration of offshore oil,
gas and other related activities under contracts. The drilling operations are carried
out at oil rigs/vessels which are situated outside the territorial waters of India.
Until around November, 1993, the company was permitted to transship stores to
the oil rigs without levy of any customs duty regardless of the fact whether oil rigs
were operating within a designated area or non-designated area.
Whether oil rigs engaged in operations in the exclusive economic zone/continental
shelf of India, falling outside the territorial waters of India, are ‘foreign going
vessels’ as defined by section 2(21) of the Customs Act, 1962, and are entitled to
consume imported stores thereon without payment of customs duty in terms of
section 87 of the Customs Act 1962 ?            (5 marks)
(c) Arpit Alloys Ltd. imported a consignment of metal bars during July, 2008 by sea,
weighing 5,300 tons from U.K. A bill of entry for home consumption was filed and
an order for clearance was passed by the Assistant Commissioner. The company
paid the applicable duty. Thereafter, delivery was taken and on examination by
the company’s representatives; it was found that only 5,000 tons of metal bars
were available at the dock though duty was paid for the entire lot of 5,300 tons.
Since there was no short landing of the cargo, the short delivery of 300 tons was
also supported by the weightment certificate issued to the company by the port
trust authorities. The company made a representation to the customs department
for appropriate relief under the Customs Act, 1962. Examine.           (5 marks)

P A R T — C
8. Attempt any four of the following :
(i) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(a) Countries that employ explicit policies designed to attract international trade
oriented activities by minimisation of taxes and reduction or elimination of
other restrictions on business operations are described as _____________.
(b) The authority for advance ruling will not allow consideration of any question
involving determination of ______________ of any property.
(c) The ruling given by the authority for advance rulings will be binding on
______________.
(d) Indian income-tax law does not provide any exemption in case of amalgamation
of an Indian company with a foreign company wherein the resultant amalgamated
company is a ___________.
(e) ___________ means any area outside India which may be notified as such by
the Central Government for the purpose under section 90A of the Income-tax
Act, 1961.           (1 mark each)
(ii) If a tax payer has legitimately reduced his tax burden by taking advantage of
treaty, the benefit cannot be denied to him on the ground of loss of revenue.
Explain in the context of decided case law.         (5 marks)
(iii) A resident of India has paid tax in a foreign country in respect of his income
which accrued in that country. India has no double taxation avoidance agreement
with that country. Such income is also taxable in India. Is there any relief
available to him in respect of the tax paid by him ? Explain.        (5 marks)
(iv) Distinguish between ‘international transactions’ and ‘cross border transactions’.
(5 marks)
(v) Can a public sector undertaking which has undertaken a transaction with a nonresident,
seek an advance ruling in respect of tax liability of the non-resident and
also its own liability ? Indicate the scope of applicability of such advance rulings.   (5 marks)
(vi) “Under the special provisions of the Income-tax Act, 1961, any income arising
from an international transaction shall be computed having regard to the arm’s
length price.” In this context, briefly indicate when the provisions of arm’s length
price will apply and when it will not apply and also state its scope.         (5 marks)

ICSI Previous Year Question papers Strategic Management Alliances and International Trade

ICSI Previous Year Question papers

CS Professional Programme Module III

Strategic Management Alliances and International Trade

June 2010

Time allowed : 3 hours

 Maximum marks : 100
Total number of questions : 8
P A R T — A
(Answer ANY TWO questions from this part)
1. In a market dominated by behemoths like SAIL and TISCO, finding a niche is of
crucial importance for a small player. What could a Lloyds do with a meager annual
capacity of making 6 lakh tonnes of HR coils while SAIL sold over 1,600 lakh tonnes
in the same time ? Should Lloyds follow the market leader or adopt its own unique
approach to its business strategy ? It is in the context of such questions that Lloyd’s
attention came to rest on the manufacturing process.
Almost all steel producers adopt the blast furnace technology. In this, the process
starts with a clear differentiation among the ultimate products to be manufactured.
So, manufacturing batch size has to be large enough to take up customised orders.
The raw material, iron ore, has to pass through several complex stages of manufacturing.
Lloyds looked for an alternative technology that could suit its requirements. The
solution lay in the electric arc furnace technology where the unique feature was that
initial manufacturing stages need not differentiate among different products. Such a
differentiation came at a much later stage. Translated into a business proposition,
what is meant was that Lloyds could operate with a much smaller batch size of, say,
100 tonnes and deliver quickly. For instance, a 1,000 tonnes small order of specialised
product custom-made to buyer’s specification could be delivered in as little as 15 days.
Such a quick delivery schedule would not be possible for a large integrated steel
manufacturer. In this manner, analogous to small gunboats that could efficiently
torpedo a large slow-moving ship, Lloyds carved out a niche in the highly competitive
steel market.
Answer the following questions :
(i) Comment on the nature of the business strategy of Lloyds.         (10 marks)
(ii) What are the conditions in which such a strategy would succeed ? Could fail ?  (10 marks)
2. Explain the following :
(i) SWOT analysis
(ii) BCG growth matrix
(iii) McKinsey’s 7-S Framework
(iv) Balanced Score Card approach.       (5 marks each)
Strategic Management Alliances and International Trade
3. (a) Explain in detail Michael F. Porter’s five forces model of industry analysis.  (10 marks)
(b) Distinguish between ‘goals’ and ‘objectives’. Also mention the major features of
objectives in an organisation.         (10 marks)
P A R T — B
(Answer ANY ONE question from this part.)
4. (a) Discuss the preliminary steps required for the creation of a successful alliance. (8 marks)
(b) Discuss the restrictive covenants being used in the foreign collaboration and technology
transfer agreements.    (8 marks)
(c) What are the methods of funding investments in overseas joint-venture and
wholly-owned subsidiaries ?     (4 marks)
5. (a) Discuss the important clauses to be incorporated in a foreign collaboration agreement.   (10 marks)
(b) Discuss the types of strategic alliance and its advantages.         (10 marks)
P A R T — C
(Answer ANY TWO questions from this part.)
6. (a) What is fair trade ?          (3 marks)
(b) Explain the theory of comparative advantage in international trade.      (7 marks)
(c) Why was NAFTA created and what objectives has it achieved ?         (5 marks)
(d) What are ‘deminimis margins’ and ‘price undertakings’ which necessitate the
suspension or termination of anti-dumping investigations ?          (5 marks)
7. (a) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) Quota is an important non-tariff barrier affecting the quantum of ____________.
(ii) Tariff is a source of ____________ to the government exchequer.
(iii) When duty is assessed as a percentage of the value of the imported commodity,
it is called ____________.
(iv) When the political relations between two countries are strained, a country
imposes ____________ on the imports from that particular country.       (1 mark each)
(b) Distinguish between any four of the following :
(i) ‘Prohibited subsidies’ and ‘actionable subsidies’.
(ii) ‘Geographical indications’ and ‘trade marks’.
(iii) ‘Green box’ and ‘blue box’.
(iv) ‘Substantive rules’ and ‘procedural rules’.
(v) ‘Most favoured nation (MFN)’ and ‘national treatment’.         (4 marks each)
8. Write critical notes on any four of the following :
(i) World Intellectual Property Organisation (WIPO)
(ii) Multilateral trading system
(iii) Export subsidy on agriculture
(iv) Role of WTO
(v) Necessity of dumping for exporting countries.     (5 marks each)

ICSI Previous Year Question papers CS Professional Programme Module III

ICSI Previous Year Question papers

CS Professional Programme Module III

Strategic Management Alliances and International Trade

June 2012

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
PART — A
(Answer ANY TWO questions from this part.)
1. (a) Explain the various phases of ‘strategic management process’.   (8 marks)
(b) “Weaknesses must be compared with strengths for internal analysis.” Explain the statement
giving a suitable example.         (8 marks)
(c) “Strategic planning is different from operational planning.” Discuss.    (4 marks)

2. (a) “McKinsey framework shows that there is a multiplicity of factors that influence an
organisation’s ability to change.” Discuss.         (10 marks)
(b) What are the different responsibility centres evolved for measuring divisional performance ?
Elaborate.        (10 marks)

3. (a) Explain the various strategies followed at various stages of product life cycle.     (5 marks)
(b) Explain benchmarking process with an example.         (5 marks)
(c) Discuss in detail the reasons that prompt the companies for doing business globally.              (5 marks)
(d) Explain how a GAP analysis guides the choice of an appropriate strategy.           (5 marks)
Strategic Management, Alliances and International Trade

PART — B
(Answer ANY ONE question from this part.)

4. In an inter-dependent world, every company is required to work in co-operation with others
if it wants to compete in the global market. Alliance between companies has become a crucial
weapon in the battle for competitive advantage. In this context, briefly describe the following :
(i) Characteristics of strategic alliances.
(ii) Need for alliances.
(iii) Advantages of alliances.
(iv) Types of strategic alliances.
(v) Cross-cultural alliances.                  (4 marks each)

5. (a) Discuss the factors that should be kept in mind while drafting a foreign collaboration
agreement.                     (10 marks)
(b) Enumerate the methods of funding for investment in an overseas joint venture/wholly
owned subsidiary.         (10 marks)
PART — C
(Answer ANY TWO questions from this part.)
6. (a) Explain the theory of comparative advantage.   (5 marks)
(b) State the major outcome of WTO Doha Ministerial Conference.  (5 marks)
(c) Discuss the salient features of Singapore Ministerial Declaration on trade in information
technology products.     (5 marks)
(d) What do you mean by the term ‘dumping’ ? Explain various types of dumping.   (5 marks)

7. (a) The Dispute Settlement Understanding (DSU) is often seen as one of the most important
achievements in the World Trade Organisation (WTO) agreement. Match the following
with the approximate target period for each stage of dispute settlement procedure :
(i) Panel set-up and panelists appointment (a) 60 Days
(ii) Final panel report to WTO members (b) 45 Days
(iii) Consultations, mediation, etc. (c) 6 Months
(iv) Final panel report to parties (d) 3 Weeks
(v) Dispute settlement body adopts appeals report
(if no appeal) (e) 60 Days.               (1 mark each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) ____________ duties have been described as ‘a curious hybrid of tariff ideas and
price discrimination theories of anti-trust laws’.
(ii) ____________ is broadly defined as exporting at price below those charged in
the domestic market or at a price insufficient to cover the cost of goods sold.
(iii) ____________ means placing home and foreign producers on an equal level
with regard to artificial conditions of production caused by foreign bounties, but
not interfering with natural comparative advantage.
(iv) ____________ is the comparable price at which the goods under complaint are
sold, in ordinary course of trade, in the domestic market of the exporting country
or territory.
(v) ____________ refers to the difference between normal value of the like article
and export price of the product under consideration.         (1 mark each)
(c) State, with reasons in brief, whether the following statements are true or false :
(i) Mercantilist writers argued that a key objective of trade should be to promote a
favourable balance of trade.

(ii) According to Adam Smith, division of labour was not limited by the extent of
market.
(iii) Comparative advantage states that a less developed country that lacks an absolute
advantage in any good can still engage in mutually beneficial trade.
(iv) The Association of South East Asian Nations (ASEAN) was established on
8th August, 1967 in Bangkok by six original members.
(v) The Uruguay Round was largest trade negotiation ever and most probably the
largest negotiation of any kind in international trade history.          (1 mark each)
(d) Write a note on institutional arrangement in India for anti-dumping, anti-subsidy and
safeguard against unfair trade practices.            (5 marks)

8. (a) Explain the process of ‘dumping investigation’.      (5 marks)
(b) Describe the types of ‘specificity’ that comes within the ambit of SCM agreement.
Give examples to substantiate your answer.     (5 marks)
(c) Explain the circumstances under which anti-dumping duties can be levied
retrospectively.       (5 marks)
(d) What are ‘rules of origin’ and why are they considered to be an essential part of trade
rules ?        (5 marks)

ICSI Previous Year Question papers Advanced Tax Laws and Practice

ICSI Previous Year Question papers

CS Professional Programme Module III

Advanced Tax Laws and Practice

June 2012

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
NOTE :All the references to sections mentioned in Part-A and Part-C of the Question Paper
relate to the Income-tax Act, 1961 and relevant Assessment Year 2012-13, unless stated otherwise.

PART — A
(Answer ANY TWO questions from this part.)

1. (a) State, with reasons in brief, whether the following statements are true or false :
(i) The minimum penalty for failure to get accounts audited under section 44AB or
furnish audit reports along with return of income is `1 lakh and is imposed
by the assessing officer.
(ii) The minimum penalty for failure to deduct tax at source or failure to pay wholly
or partly the tax under section 115-O(2) or second proviso to section 194-B is
a sum equal to the amount of tax failed to be deducted or paid.
(iii) A non-resident company’s tax liability arises in India when the resident
company credit the royalty payable for the amount due before making payments
to it outside India based on the contract which was signed and executed outside
India.
(iv) It is mandatory for a corporate assessee to file a return in electronic form even
if there is a loss or nil income as per section 139(1) read with section 139D.
(v) The law declared by the Supreme Court upon a judgment of a High Court is
binding on that High Court only.           (2 marks each)
(b) “Assets which are included in the definition of ‘intangible assets’ under section 32(1)(ii)
include, along with other things, any other business or commercial rights of similar nature;
goodwill, when appositely understood, does convey a positive reputation built by a person/
company/business concern over a period of time and hence, it is an asset, eligible to
depreciation.”
Critically examine the proposition stated in the above para. Support your answer with
relevant case law.             (5 marks)
Advanced Tax Laws and Practice

2. (a) Lucent Ltd. purchased a machinery on 1st April, 2011 for `10 crore by availing 70%
loan facility from bank. The machine was put to use into effective production on
1st February, 2012. The interest on loan works out to 12% per annum. Advise Lucent
Ltd. on the treatment of interest payment made on this loan and depreciation allowable
for the previous year 2011-12. You may assume that this is the only machine in its
block.                      (5 marks)
(b) Various houses owned by the assessee-company were allotted for the residential purposes
to its employees having salaries less than `5 lakh per annum. The company claimed
wealth-tax exemption in respect of the said houses (including the land appurtenant
comprising of garden, pathway, tennis court, etc.). The department has denied such
exemption. Examine whether the action of the department is tenable in law ? Cite
relevant case law.                    (5 marks)
(c) Can the Appellate Tribunal rectify the mistake in the following separate cases —
(i) if a different interpretation of law is available.
(ii) if a retrospective amendment is made to the provision.
(iii) if a subsequent decision of the Supreme Court is available on the subject after
the Appellate Tribunal’s order.
(iv) if a ruling cited before the Appellate Tribunal is not considered.
(v) if fresh grounds are raised before the Appellate Tribunal.                 (1 mark each)
3. What is the difference between ‘minimum alternate tax’ under section 115JAA and ‘alternate
minimum tax’ under section 115JC ? Who is subject to these taxes ? Also discuss the
implication of these taxes in the case of an overseas entity having a permanent establishment
(PE) in India.                   (15 marks)

PART — B
(Answer Question No.4 which is compulsory and any two of the rest from this part.)
4. (a) Write the most appropriate answer from the given options in respect of the following :
(i) What is the source of power of levying VAT under the Constitution of India —
(a) Entry 84 of List I
(b) Entry 97 of List I
(c) Entry 52 of List II
(d) Entry 54 of List II.
(ii) National Calamity Contingent Duty of customs is not imposed on ––
(a) Mobile phones
(b) Pan masala
(c) Chewing tobacco
(d) Cigarettes.
(iii) What is the amount of prescribed fees which should be accompanied with an
application to settlement commission —
(a) `500
(b) `1,000
(c) `2,500
(d) `5,000.
(iv) Section 114 of the Customs Act, 1962 provides for levy of penalty in case of
goods in respect of which any prohibition is in force not exceeding —
(a) One time of the value of the goods
(b) Three times of the value of the goods
(c) Two times of the value of the goods
(d) Four times of the value of the goods.

(v) Credit balance as on 31st January, 2012 is `75,000 and on 5th February, 2012
it is `87,000. Duty payable for January, 2012 is `90,000. How much credit can
the assessee utilise from the CENVAT credit account —
(a) `87,000
(b) `75,000
(c) `37,500
(d) `43,500.
(1 mark each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) Service tax is a ____________ based consumption tax on commercial activities.
(ii) Residual penalty for violation of CENVAT Credit Rules can be imposed _______
under Rule 15A of CENVAT Credit Rules, 2004.
(iii) Refund of export duty under section 26 of the Customs Act, 1962 is ____________
provisions of unjust enrichment.
(iv) Promissory estoppel plea fails where ____________ intervenes.
(v) _______ means the value of imported goods determined in accordance with
Rule 8 of Customs Valuation (Determination of Price of Imported Goods)
Rules, 2007.            (1 mark each)
(c) State whether the following goods are ‘input’ as per Rule 2(k) of the CENVAT Credit
Rues, 2004 :
(i) All goods used for generation of electricity for captive use
(ii) Light diesel oil
(iii) Motor vehicles
(iv) Goods used for making of structures for support of capital goods
(v) Goods used for providing free warranty for final products.          (1 mark each)
(d) Pradhan imported a consignment valuing `8 lakh vide a bill of entry presented
before the proper officer on 25th April, 2011 on which date the rate of customs duty
was 10%. On Pradhan’s failing to produce requisite documents for the purpose of
assessment, the goods were provisionally assessed at a value of `8 lakh and the duty
was paid accordingly on the same date. The goods were finally assessed at `12 lakh
on 9th June, 2011 and the differential duty was paid on 12th June, 2011.
Compute the amount of interest, if any, under section 18 of the Customs Act, 1962.
(5 marks)
5. (a) Avon Plastic Ltd. is a company manufacturing plastic goods. It has two factories —
one at Jaipur and another at Noida. Following information in respect of the two factories
is available for the financial year 2011-12 :
( in lakhs)
Particulars Jaipur Noida
Factory Factory
(i) Goods cleared with own brand name 75 100
(ii) Clearances of plastic containers bearing brand name of Jolly Jams (to pack jam by them) 45 70
(iii) Goods cleared to 100% EOU against Form CT–3 90 80
(iv) Export to Bhutan 50 60
(v) Job work under Notification No.214/86–CE dated 25.03.1986 65 55
(vi) Job work under Notification No.84/94–CE dated 11.04.1994 85 95
On the basis of above information, you are required to ascertain whether Avon
Plastic Ltd. is eligible for the benefit of small scale exemption under Notification
No.8/2003-CE dated 1st March, 2003 during the financial year 2011-12.     (6 marks)
(b) From the following information, compute the amount of basic customs duty and additional
duty of customs payable under section 3(1) of the Customs Tariff Act, 1975 in respect
of import of readymade garments :
— Assessable value under customs : `1,50,000;
— Tariff value notified under central excise for levy of excise duty : 45% of the
retail sale price;
— Retail sale price : `4,00,000 (readymade garments are not notified under section
4A of the Central Excise Act, 1944);
— Basic customs duty : 10%;
— Central excise duty : 10%; and
— Education cess : as applicable.            (5 marks)
(c) Vishal has made an unauthorised import of 1,000 pieces of a product. Other particulars
are as under :
Total assessable value : ` 5,00,000
Total customs duty payable : ` 1,20,000
Market price in India : ` 1,000 per piece
Customs authorities have confiscated the said goods and importer has been given an
option to get the said goods released on payment of a fine equal to margin of profit.
Compute — (i) amount of fine payable; and (ii) maximum amount of fine under
section 125 of the Customs Act, 1962.          (4 marks )
6. (a) Menz Car Co. is manufacturing cars and discharging duty liability thereon by including
cost of mandatory one year warranty in the transaction value of cars. An option was
given to customers to obtain extended warranty for a further period of two years against
payment of separate charges. This extended warranty was introduced by assessee and
administered through dealers for which dealers were allowed commission. Such extended
warranty charges were not included in assessable value.
The department contended that the same were includible in assessable value of
manufactured cars. Discuss, in the light of decided case law, if any, whether contention
of the department is tenable in law.                 (5 marks)
(b) Explain the validity of the following statements with reference to Chapter IX of the
Customs Act, 1962 containing the provisions relating to warehousing :
(i) Owner of any warehoused goods cannot carry on any manufacturing process or
other operations in relation to warehoused goods.
(ii) Warehoused goods may be transferred from one warehouse to another warehouse.
(iii) The importer must execute a bond equal to the amount of duty assessed with
necessary surety or security.                              (2 marks each)
(c) Briefly discuss whether the following powers vest with the Commissioner (Appeals) under
the Central Excise Act, 1944/Customs Act, 1962 :
(i) Remanding the case back to the adjudicating authority; and
(ii) Condoning the delay in filing appeal before him.             (2 marks each)
7. (a) What are the goods notified under section 3A of the Central Excise Act, 1944 liable
to duty based on annual capacity of production ? Whether declaration of retail sale
price is mandatory in case of such notified goods ?                  (5 marks)
(b) Briefly explain with reference to section 11AC of the Central Excise Act, 1944 the
circumstances under which penalty has to be imposed mandatorily. State whether it
can be reduced statutorily.         (5 marks)
(c) Discuss the provisions of the Customs Act, 1962 relating to the determination of duty
where imported goods consist of articles liable to different rates of duty.         (5 marks)

PART — C
8. Attempt any two of the following :
(i) You are a tax consultant to an overseas manufacturing company which is going to start
a permanent establishment in India with manufacturing facility in Madurai District of
Tamilnadu. Prepare a report for the Chairman of the company highlighting latest transfer
pricing provisions applicable in India.
(10 marks)
(ii) Explain the provisions relating to ‘advance ruling’ in the Income-tax Act, 1961.
(10 marks)
(iii) How foreign institutional investors are taxed on the income and capital gains arising from
the transfer of securities ?        (10 marks)

ICSI Previous Year papers CS Professional Programme Module II

ICSI Previous Year papers

CS Professional Programme Module II

Corporate Restructuring and Insolvency

June 2009

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8

NOTE : All references to sections relate to the Companies Act, 1956 unless stated otherwise.
P A R T — A
(Answer Question No.1 which is compulsory and any three of the rest from this part.)

1. (a) (i) ABC Ltd. has 700 creditors (in number) representing total value of Rs.100
crore as per its balance sheet. In a creditors meeting called under section 391
for considering proposed scheme of amalgamation with XYZ Ltd., out of total
700 creditors, only 150 creditors representing value of Rs.45 crore were present.
Out of said 150 creditors present at the said meeting, only 140 creditors
representing value of Rs.40 crore voted in favour of the resolution, while 10
creditors representing value of Rs.5 crore cast their dissenting vote against
the scheme. Whether the motion proposing the scheme of amalgamation
should be treated as approved or not ? Explain with reference to relevant provisions of law and case law, if any.           (5 marks)
(ii) In a scheme of arrangement made under section 391, a company proposes to transfer one of its undertakings to its subsidiary and also to reduce its share capital. Is the scheme valid ? Explain with relevant provisions of law and relevant cases. (5 marks)
(b) State whether the following statements are true or false citing briefly relevant provisions of the law :
(i) There is a bar on a company amalgamating with a newly incorporated company.
(ii) A non-profit making company licensed under section 25 can be merged with a profit making company.
(iii) High Court can sanction a scheme of merger of a sick industrial company when a revival scheme is pending before BIFR.
(iv) An appeal can be preferred to the Supreme Court of India against the order
passed under section 391/394 sanctioning a scheme of amalgamation.
(v) The court can modify ‘transfer date’ proposed in a scheme of amalgamation.    (2 marks each)
(c) Explain the provisions relating to buy-back of shares through book-building route. (5 marks)
Corporate Restructuring and Insolvency

2. (a) Reduction of capital is one of the modes of re-organisation of capital structure of
the company and to a certain extent it can be done without the sanction of the court. Explain with relevant provisions of the law.         (7 marks)
(b) Strategy is the very soul of any action and activity. Briefly define the strategy with 5Ps of Henry Mintzberg.                     (4 marks)
(c) In a scheme of compromise, arrangement, reconstruction or amalgamation, various
types of approvals are required. Describe briefly such approvals.         (4 marks)

3. (a) In a buy-back of securities, a company has to pay stamp duty under the Indian
Stamp Act, 1899 for physical shares. Do you agree ? Explain.         (5 marks)
(b) In an open offer in terms of the SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 1997, what message is conveyed by the SEBI by way of
‘disclaimer clause’ to the shareholders of the target company ?            (5 marks)
(c) What do you mean by ‘hostile takeover’ ? Why these types of takeovers are
resorted to and by whom, and what is the objective of the acquirer ?     (5 marks)

4. (a) Good Value Ltd. (GVL) is contemplating acquisition of Fair Value Ltd. (FVL).
GVL has 3,00,000 equity shares and FVL has 2,00,000 equity shares and the
market value of shares are Rs.30 and Rs. 20 and EPS is Rs.4 per share and
Rs.2.25 per share respectively. It is proposed to give one share of GVL to the
shareholder of FVL for their two shares in FVL. Based on the above information,
you are required to —
(i) calculate EPS after the merger/acquisition of the company; and
(ii) show the impact on EPS for the shareholders of both the companies.        (5 marks)
(b) X, an acquirer, fails to fulfil the offer obligation towards shareholders of target
company who have lodged their shares with the acquirer. What are the remedies
available to a merchant banker for discharge of the obligations especially towards
shareholders who have participated in the offer as well as to deal with the escrow
account ?                (5 marks)
(c) State whether any stamp duty is payable on transfer of properties under the order
of amalgamation. Briefly comment with relevant case law.            (5 marks)

5. (a) (i) The court has fixed meeting of equity shareholders of Rim Zim Ltd. on Tuesday,
the 9th June, 2009 at Broadway Hotel, 3, Osaka Street, Mumbai for considering
the proposed scheme of amalgamation with Jhil Mil Ltd. and appointed Kabir
as Chairman and Mrs. Noori as alternate Chairperson of the meeting. As a
Company Secretary of Rim Zim Ltd., draft the notice of the meeting.            (7 marks)
(ii) After meeting of equity shareholders of Rim Zim Ltd., the proposed scheme of
amalgamation of Rim Zim Ltd. with Jhil Mil Ltd. was passed. Draft the Chairman’s
report for onward submission to the court.              (4 marks)
(b) Briefly explain with relevant provisions of the Companies Act, 1956 as to when the
scheme of amalgamation would become effective.        (4 marks)
PART—B
(Answer ANY TWO questions from this part.)

6. (a) Explain the enforcement of security interest by a secured creditor under the Securitisation
and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
(7 marks)
(b) Define ‘securitisation’ and explain the objectives of securitisation.              (4 marks)
(c) What do you mean by ‘non-performing assets’ under the Securitisation and Reconstruction
of Financial Assets and Enforcement of Security Interest Act, 2002 ?                 (4 marks)

7. (a) What do you understand by ‘sick industrial company’ ? Explain the immunities
provided to a sick industrial company under the Sick Industrial Companies (Special
Provisions) Act, 1985.                  (7 marks)
(b) Though, UNCITRAL Model Law is not a substantive law, yet it recommends
protection to creditors and other interested persons. Briefly describe what are the
protections provided under the UNCITRAL Model Law.           (4 marks)
(c) The main objective of asset reconstruction company (ARC) is to act as an agent
for banks and financial institutions. Briefly explain with the relevant provisions
of law.             (4 marks)

8. (a) State the World Bank principles for effective insolvency and creditor rights systems.
(7 marks)
(b) On 2nd December, 1983, winding-up order was passed in respect of Heaven Ltd.
On 1st December, 1989, official liquidator of Heaven Ltd. (in liquidation) initiated
misfeasance proceedings against the promoter directors of the company. Directors
pleaded that proceedings should be quashed being time barred. Briefly explain
with support of relevant case laws, period of limitation for initiating misfeasance
proceedings under the Companies Act, 1956.           (4 marks)
(c) Can an Indian court pass an order of amalgamation that has the winding-up effect
in respect of the foreign company ? Support your answer with relevant case law.  (4 marks)

ICSI Previous Year papers CS Professional Programme Module II

ICSI Previous Year papers

CS Professional Programme Module II

Corporate Restructuring and Insolvency

June 2012

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
NOTE : All references to sections relate to the Companies Act, 1956 unless stated otherwise.
PART — A
(Answer Question No.1 which is compulsory and any three of the rest from this part.)
1. (a) It is believed that ‘strategy’ is a tactical and flexible way of resolving routine and nonroutine issues in the corporate world. In this connection, Henry Mintzberg has enunciated
5Ps of strategy. Briefly explain these 5Ps within a maximum limit of 20 words each.      (5 marks)
(b) What is meant by ‘strategic alliance’ and what are its features ?          (5 marks)
(c) “A conglomerate merger is neither a type of horizontal merger nor a vertical merger.”
Discuss.         (5 marks)
(d) State whether the following statements are true or false citing relevant provisions of the law :
(i) Scheme of amalgamation which is not approved at a meeting by the requisite
majority, but is subsequently approved by individual affidavits is deemed to be validly approved.
(ii) The resolution granting approval to the scheme of arrangement is passed by
creditors with more than 3/4ths in value, but not by creditors majority in number.
The scheme would be deemed to be disapproved and court can disapprove the scheme on this ground.
(iii) Court is not bound to order convening meeting of shareholders/creditors for their
approval on scheme of amalgamation which prima facie looks to be illegal, contrary to the public policy and unfair in its opinion.
(iv) Court cannot sanction a scheme of amalgamation where order of winding-up has
been made and a liquidator has been appointed. Corporate Restructuring & Insolvency

(v) Any scheme of compromise or arrangement approved by the majority of creditors
shall be binding on all the creditors even prior to the approval of the court and
individual creditors shall not be entitled to file separate individual applications.
(2 marks each)

2. (a) What types of disclosures are required to be published in the first financial statements
following the amalgamation of the transferee company (both for pooling of interests method and purchase method) ?           (7 marks)
(b) Fitwell Ltd. is intending to make an initial public offer (IPO) of `50 crore through
the book building process. Mention the provisions of the SEBI (Issue of Capital and
Disclosure Requirements) Regulations, 2009 relating to pricing in public issue.    (8 marks)

3. BM (India) Ltd. (BMIL) is a company registered in India. 99% of shareholding of BMIL
is controlled by three companies namely, Van India Ltd. (VAN) (45%), Man India Ltd. (MAN)
(45%) and Ran India Ltd. (RAN) (9%) which are the promoters of BMIL. The remaining
1% shareholding is in the control of 10 individual shareholders.
BMIL has filed a petition before the court for reduction of its share capital under sections
100 to 105 and stated that “only the shares of minority shareholding which at present is 1%
of the total paid capital will be extinguished and reduced.” The articles of association of
BMIL contain provisions for the reduction of capital. 99.99% shareholders have approved
the special resolution except one shareholder Gaurav who has 0.01% of shares of the company.
Gaurav has raised objection on the proposed scheme of reduction of capital on the following
grounds :
— Proposed reduction of share capital by BMIL amounts to ‘forcible acquisition’ of shares
of public shareholders as only their shares are being extinguished, whereas the shares
of promoter group, i.e., VAN, MAN and RAN remain unaffected. According to Gaurav,
the actual intent and reason for reduction of share capital is only to eliminate the minority
shareholders as members of the company and is thus wholly unfair, discriminatory and
malafide. Gaurav submits that reduction, if any, should be spread equally over all the
different classes of shareholders of BMIL.

— Gaurav submits that the reduction of share capital proposed by BMIL is in fact a buyback
of the shares under section 77A and accordingly reduction of share capital has
to be done on proportionate basis as mentioned in section 77A(5).
Keeping in view the provisions of section 77A, sections 100 to 105 and also the objections
of Gaurav, you, being the Company Secretary and Legal Advisor of BMIL, are asked to
give your opinion on the following :
(i) Reduction of capital under section 100 gives liberty to the company to reduce its capital
in ‘any manner’ other than what is illustrated in clause (a), (b) and (c) of section 100(1).
(ii) Section 77A should not be applicable in case where petition for reduction of capital
is moved to the court pursuant to sections 100 to 105.
Cite relevant case law in support of your answer.                 (15 marks)

4. (a) A scheme of amalgamation was sanctioned by the High Court on 21st July, 2009 on
the application made by Kshitija Garment Ltd. (KGL). KGL was directed to file a
certified true copy of the order with the Registrar of Companies (ROC) within 30 days.
However, due to inadvertence of the clerk of advocate on record, photostat signed copies
of said order were obtained instead of certified copies. Thereafter, a fresh requisition
was put in and on 25th November, 2009 (almost after a gap of three months), certified
copy of the order was obtained. Since the period of 30 days from the date of the order
had lapsed, ROC refused to accept the certified copies of the order.
KGL moved an application before the Company Court for extension of time to file the
certified copies of the sanctioned scheme with ROC beyond the permitted time. The
Company Court dismissed the application holding that as applicant had not filed the
certified true copy within the prescribed time of one month (30 days), a presumption
arose that KGL had abandoned the scheme.
On appeal, KGL contended that Rule 7 of the Companies (Court) Rules, 1959 expressly
empowers the courts to extend the time fixed by an order of the court for doing any
act and with this rule, there cannot be a presumption that after expiry of 30 days it
was to be deemed that the KGL had abandoned their right to file the certified copy.
KGL further stated that procedural law should not be allowed to overpower substantive
rights and substantial cause for justice.
Keeping in view the above facts, give your opinion whether KGL would be successful
in getting the extension of time for filing of certified copy of the order with the ROC.    (7 marks)
(b) Discuss funding of a merger or takeover through financial institutions and banks. (8 marks)
5. (a) What is meant by Indian depository receipts (IDRs) ? Why are such receipts issued ?        (5 marks)
(b) Where no mistake is found in valuation of exchange ratio worked out by a recognised
firm of chartered accountants and the same has been accepted by the shareholders/creditors
with overwhelming majority, court still has a right to substitute its own exchange ratio.
Do you agree ? Discuss.               (5 marks)
(c) What is the meaning and importance of ‘appointed date’ particularly in case of demerger
or spin-off ?              (5 marks)

 

PART — B
(Answer ANY TWO questions from this part.)

6. (a) ARC India Ltd. (ARCIL) filed winding-up petition of MF Ltd. (MFL) before the
Company Court. ARCIL was having security interest in MFL and wanted to dispose
of the assets for which it has requested the Company Court to give permission. Prior
to the order of winding-up, an order was passed by the Company Judge declining
permission to ARCIL (appellant) to sell the assets of MFL under section 13 of the
Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002.
Aggrieved by the order of Company Judge, ARCIL has filed an appeal before the division
bench. The division bench has permitted ARCIL to sell the secured assets of MFL
which is in liquidation in accordance with the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
On the basis of the valuation report of the registered valuer, the fair market value of
the properties was fixed by the Sale Committee at `30 crore and distress market value
was fixed at `15 crore. In auction, two bidders emerged at top, offering `40 crore and
`41 crore. The Company Judge has refused to confirm the sale conducted by the Sale
Committee on the ground that there was a huge gap between bid amount and fair market
value. The Company Judge has not assigned any other reasons for not confirming the
sale in favour of the highest bidder. Official Liquidator has made a statement that
he was a party to the sale proceedings and he never objected to the proposal of the
Sale Committee and today also he is not in a position to contend that the price quoted
by the highest bidder is on the lower side or that the properties in question can be
sold at a higher price.
In spite of the request of ARCIL and statement given by the Official Liquidator, the
Company Judge set aside the proceedings of the sale and also directed refund of the
security amount to all the bidders. The Company Judge further ordered to the Official
Liquidator to get a fresh valuation report.
Keeping in view the above facts and circumstances, you are required to give your opinion
as to —
(i) Whether the Company Judge has committed an error in not approving the report
submitted by the Sale Committee, without giving any reason ?
(ii) Whether ARCIL would be successful in getting favourable order from division bench ?
(9 marks)
(b) What do you understand by ‘operating agency’ and what are its functions ?         (6 marks)
7. (a) GCL Ltd. is a company engaged in the business of accepting deposits from the general
public and lending the same to the needy at a higher rate of interest and thereby earning
profits. Over a period of time, GCL Ltd. started incurring losses and did not pay back
to their depositors. Ranjan, one of the deposit holders of GCL Ltd. issued statutory
notice to GCL Ltd. asking for repayment of amount due to him. In spite of the lapse
of 21 days, the GCL Ltd. neither paid the amount to Ranjan nor replied to the statutory
notice served to it.
Ranjan, aggrieved by the conduct of the GCL Ltd., filed petition for winding-up of GCL
Ltd. before the High Court under section 433(e) and (f). In response to the said petition,
GCL Ltd. stated that if the loans and advances made by it were recovered, GCL Ltd.
would have been able to repay the amount due to the deposit holders. However, due
to the financial crises and the globalisation of markets, GCL Ltd. was unable to repay
the amount. GCL Ltd. has submitted profit and loss account and balance sheet according
to which the liability of the company was more than its assets.
Considering the above facts, give your comments as to whether Ranjan would be
successful in getting the winding-up order against GCL Ltd.                          (7 marks)
(b) On what grounds is RBI entitled to exercise its power under section 4 of the Securitisation
and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
to cancel the ‘certificate of registration’ issued by it to any asset reconstruction company ?
What formalities have to be undertaken by RBI before cancellation of certificate of
registration ?                 (4 marks)
(c) Explain the term ‘cross border insolvency’.             (4 marks)
8. (a) “Under some circumstances including the completion of basic objective of incorporation
of a company, the company may be wound-up by knocking the door of a court of law.”
You are required to explain —
(i) Circumstances under which a company may be wound-up.         (4 marks)
(ii) The procedure to be followed for winding-up of a company.       (4 marks)
(iii) Why, in your view, the provisions of voluntary winding-up are contained in the
Companies Act, 1956 ?           (2 marks)
(b) In the context of UNCITRAL Model Law, what do you mean by the following :
(i) State
(ii) Establishment
(iii) Foreign main proceeding
(iv) Foreign Court
(v) Foreign representative.
(1 mark each)

ICSI Previous Year papers Drafting Appearances and Pleadings

ICSI Previous Year papers

Professional Programme Module 1

Drafting Appearances and Pleadings

June 2009

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
NOTE : Answer SIX questions including Question No.1 which is compulsory.

1. (a) Hurry Burry Ltd. went into liquidation and its assets were put to sale by the
court. The terms and conditions of the sale stated that the sale would be of the
assets on ‘as is where is and whatever there is’ basis and the bidders had to
satisfy themselves as to any encumbrance on the property. On 15th September,
2006, the company judge confirmed the sale of an immovable property in an
auction in favour of Ravi. Later on, Ravi received a notice from the municipal
corporation authorities claiming the payment of arrears of property tax for the
period prior to 15th September, 2006 with interest. The municipal corporation had
not filed its claim before the official liquidator. It was argued by the municipal
corporation authorities that the sale was made on ‘as is where is and whatever
there is’ basis and the buyer was deemed to have full knowledge as to the defects
in the description, quality and quantity of the assets sold. Decide whether Ravi
is liable to pay the arrears of property tax with interest. Support your answer
with decided case law.                    (5 marks)
(b) What are the do’s and don’ts which should be considered while drafting documents?
(5 marks)
(c) Explain the following :
(i) Deed pool
(ii) Deed poll
(iii) Indenture
(iv) Cyrographum
(v) Deed escrow.                             (2 marks each)
2. (a) Mention important aspects which should be kept in mind while drafting a sale
deed of an immovable property by a limited company.                        (5 marks)
(b) Alpha Industries Ltd. wishes to appoint Ram Avtar & Co., Advocates as their
legal consultant on an annual retainership basis. Draft a suitable agreement
assuming facts, wherever necessary.                  (5 marks)
Drafting Appearances and Pleadings

(c) Explain the following types of guarantee :
(i) Contract of guarantee
(ii) Continuing guarantee
(iii) Bank guarantee.               (2 marks each)
3. (a) What are the statutory provisions for appeals to the Securities Appellate Tribunal
(SAT) under the Securities and Exchange Board of India Act, 1992 ?         (4 marks)
(b) Distinguish between ‘lease agreement’ and ‘licence agreement’.          (4 marks)
(c) Draft a specimen arbitration agreement to refer a dispute to two arbitrators.
(8 marks)
4. (a) “Articles of association of a company are public documents and have evidentiary
value in matters which involve dealings of a company with its own members or
third parties.” Discuss the statement and also state the important aspects to be
kept in view while drafting the articles of association of a company.             (8 marks)
(b) Write notes on the following :
(i) Rule of adverse inference
(ii) Representative suit.              (4 marks each)
5. (a) “It is incumbent upon the defendant to file his defence in writing, else the court
may pronounce judgment against him or make such order as it deems fit.” Examine
the statement and enumerate important points while drafting the reply or a written
statement.             (6 marks)
(b) Discuss the contents of a trust deed.             (6 marks)
(c) Explain any two types of mortgage.               (4 marks)
6. (a) Ultra Vision Textiles Ltd. is entering into a foreign collaboration with Omega Inc.,
USA for technical know-how and assistance for the proposed textile machinery
manufacturing project. Draft a suitable foreign collaboration agreement.        (10 marks)

(b) A contract existed between Rahul and Sahil. Sahil went to the court of law for
non-performance of the contract by Rahul. During the pendency of the suit, Rahul
and Sahil arrived at certain compromise and reduced the terms of compromise by
signing a ‘memorandum of understanding’ (MOU). Whether such an MOU amounts
to novation of the contract ?           (6 marks)
7. (a) What is meant by ‘compromise’ and ‘arrangement’ ? What is the procedure to be
followed for carrying through a compromise or arrangement under the Companies
Act, 1956 ?                                           (6 marks)
(b) Mention the important considerations while drafting an affidavit in evidence.  (5 marks)
(c) What is meant by ‘etiquette’ ? What are the invitation etiquettes to be observed
by a Company Secretary ?                (5 marks)
8. (a) Explain the following :
(i) Habeas corpus
(ii) Mandamus.                                (3 marks each)
(b) What are the advocacy tips to be borne in mind by a Practising Company Secretary
while appearing before a tribunal ?             (5 marks)
(c) What is the meaning of the term ‘compounding’ ? What factors are to be taken
into consideration for the purpose of compounding of offences under the respective
statutes ?             (5 marks)

ICSI Previous Year papers Company Secretarial Practice

ICSI Previous Year papers

Professional Programme Module 1

Company Secretarial Practice

June 2009

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
NOTE : 1. Answer SIX questions including Question No.1 which is compulsory.

2. All references to sections relate to the Companies Act, 1956 unless stated otherwise.
1. Draft any four of the following. In case of resolution, give reasons for passing the
requisite resolution stating the authority who can pass it and also the type of resolution
referring to the relevant section(s) of the Companies Act, 1956 :
(i) Agreement with Vivek as the Managing Director of Grow Fast Ltd. for a period
of 3 years at a remuneration of Rs.20 lakh per month with perquisites allowable
under Schedule XIII to the Companies Act, 1956, but with no commission. The
company is consistently earning profits and the remuneration will be subject to
the provisions of sections 198 and 309. (Only main body of the resolution is to be
drafted containing the duties, responsibilities and powers of the appointee.)
(ii) Appropriate resolution to make investment of Rs.15 crore in preference shares of
Sona Tractors Ltd., a company in trade dealing relationship with the investing
company. The investing company has a paid-up equity capital of Rs.20 crore, a
paid-up preference capital of Rs.5 crore and general reserve of Rs.4 crore. The
company has no other investment or recoverable loan.
(iii) Resolution recommending declaration of dividend to shareholders without providing
for depreciation.
(iv) Notice for book closure prior to payment of final dividend.
(v) A compliance certificate without any qualification for a private limited company
having a paid-up capital of Rs.2 crore in respect of the year ended on 31st March,
2009 embodying the substantive part of the report (i.e., the task carried on and
scope of the work) including only certification of maintenance of books and registers
and filing of required returns/documents with appropriate authorities.   (5 marks each)

2. (a) State, with reasons in brief, whether the following statements are correct or incorrect:
(i) A listed company cannot issue sweat equity shares to its promoters.
(ii) Since a producer company is an innovation, it does not need the words ‘limited’
at the end of its name.
(iii) E-Form 10 relates to registration of charges.
(iv) A company declared defunct under section 560 can never be included again
in the register of companies maintained by the Registrar of Companies.
Company Secretarial Practice
(v) The Insider Trading Regulations promulgated by SEBI excludes the auditor
of the company from the scope of the regulations.
(vi) Under the UK Companies Act, 2006, a director of a public company can be
removed before expiry of his term only by a special resolution.          (2 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) ________ is the conclusive evidence in case of a company that the statutory
requirements have been complied with.
(ii) In case the minimum subscription is not received and refund is delayed,
________% interest is to be paid by a company.
(iii) ________ is a new form of legal entity recognised in India recently.
(iv) Buy-back securities should be physically destroyed within ________ days.   (1 mark each)
3 (a) Choose the most appropriate answer from the given options in respect of the
following :
(i) A notice of disclosure of interest at the Board meeting is the requirement of
section —
(a) 295
(b) 269
(c) 297
(d) 299.
(ii) A director appointed by the Board to hold the office until the conclusion of
next annual general meeting is known as ––
(a) Additional director
(b) Nominee director
(c) Alternate director
(d) Director retiring by rotation.
(iii) As per the provisions of the Companies Act, 1956, the form of proxy must be
deposited with the company at least —
(a) 24 Hours before the time of annual general meeting
(b) 36 Hours before the time of annual general meeting
(c) 48 Hours before the time of annual general meeting
(d) 72 Hours before the time of annual general meeting.
(iv) The applicant for availability of name of the proposed company can have
option to give maximum —
(a) 3 Alternative names
(b) 4 Alternative names
(c) 5 Alternative names
(d) 6 Alternative names.
(v) A person who is a Company Secretary and director of a company is ––
(a) Employee director
(b) Non-executive director
(c) Executive director
(d) Independent director.
(vi) A company in which 50.25% of shares are held by one State government while
the rest of the shares are held by private sector companies and by retail
shareholders, i.e., members of public, is a —
(a) Government company
(b) Public company
(c) Corporation
(d) Private sector company.                       (1 mark each)
(b) “Postal ballot system is an unmixed blessing.” Comment.        (6 marks)
(c) Briefly outline the provisions of the Companies Act, 1956 in regard to postal
ballot.          (4 marks)
4. (a) A charge for Rs.3 crore was created and registered by Dada Films Ltd. in favour
of State Bank of India. The same was fully repaid on 31st August, 2009, but the
relevant ‘E-Form’ for registering the satisfaction of the charge was filed on
10th October, 2009. The company then realised that it has unintentionally delayed
the filing and has attracted penal provision of the Companies Act, 1956 in this
regard. The company has approached Chetan, a Practising Company Secretary
for his advice as regards the possibility of any condonation of the offence. What
would be the advice ?           (4 marks)
(b) Discuss the various aspects of ‘responsibility and accountability’ of the Board in
corporate culture.          (4 marks)
(c) Explain the impact of speculative reports in media with price sensitive information
quoting case law.            (4 marks)
(d) What is ‘management discussion and analysis report’ (MDAR) ? State its contents.
(4 marks)

5. As a Company Secretary of Smart Enterprises Ltd., how would you tackle the following
situations :
(i) Quorum was present at the beginning of a Board meeting. However, after one
hour, one director had to leave for certain emergency and the presence of directors
in the meeting fell below the minimum required for quorum. There were two
matters remaining to be considered as per the agenda.
(ii) A director of the company remained absent, without notice, for 6 meetings during
first quarter of 2009.
(iii) The Union Bank of India has given a loan of Rs.25 crore for the company’s new
project and as per one of the terms of sanction it wants to nominate its Chief
Manager, Vijay on the Board.
(iv) A person informs you in writing that he is not a member of your company, yet he
has received a notice for the annual general meeting as a member.        (4 marks each)
6. (a) There are two executive directors in your company who are technocrats. The
company is a public limited company. The company has incurred huge losses in
the last two years. The company wants to enhance their remuneration to Rs.6
lakh per month from existing Rs.4 lakh. The data from the balance sheet of the
last year indicates that the paid-up capital of the company is Rs.10 crore and
accumulated losses of Rs.10.67 crore, term loan and other long-term borrowings
are Rs.5 crore. Besides, the company holds a long-term investment of Rs.7 crore.
The company’s remuneration committee has recommended the proposal and the
company is regular in repayment of its debts. As the Company Secretary, how
would you deal with the matter ?            (8 marks)
(b) Bring out the salient aspects of the Companies (Director Identification Number)
Rules, 2006 leading to the issue of Director Identification Number (DIN).      (8 marks)

7. (a) Answer the following with reference to Secretarial Standard–7 on passing of Board
resolution by circulation process :
(i) Who is authorised to decide that certain resolutions (other than those specified
in section 292) are to be taken up for consideration by circulation as against
in a meeting ?
(ii) What procedure is to be followed for passing a resolution by circulation ? Are
interested directors eligible to receive the proposed resolution and related
papers ?
(iii) How is a proposed (circulated) resolution considered approved or not ?
(iv) A notice accompanying the proposed resolution provides for 7 days to intimate
directors’ assent or dissent. On which date the resolution shall be deemed to
be approved when assents from required majority have been received within
3 days of the circulation ?          (2 marks each)
(b) State the matter along with relevant section(s) of the Companies Act, 1956 for
which the following E-Forms are required to be filed :
(i) E-Form 1B
(ii) E-Form 20B
(iii) E-Form 23B
(iv) E-Form 25C.                          (1 mark each)
(c) State the requirement for audit of the financial accounting statements under the
UK Companies Act, 2006.          (4 marks)

8. Distinguish between any four of the following with reference to the provisions of the
Companies Act, 1956 :
(i) ‘Debenture’ and ‘deposit’.
(ii) ‘Reduction of share capital’ and ‘buy-back of shares’.
(iii) ‘Director’ and ‘deemed director’.
(iv) ‘Dividend’ and ‘bonus shares’.
(v) Legal basis of ‘issue of shares at a discount’ and ‘issue of shares at a premium’. (4 marks each)

ICSI Previous papers Drafting Appearances and Pleadings

ICSI Previous papers Professional Programme Module 1

Drafting Appearances and Pleadings

June 2012

Time allowed : 3 hours Maximum marks : 100
Total number of questions : 8
NOTE : Answer SIX questions including Question No.1 which is compulsory.

1. (a) “Hypothecation is an extended form of pledge.” Explain the statement and make
suggestions for improvement in the law of hypothecation citing case law(s). (10 marks)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) Drafting may be defined as the synthesis of___________and ___________ in a
language form.
(ii) According to section 128 of the Indian Contract Act, 1872, the liability of the
surety is ___________ with that of the ___________ unless it is otherwise
provided by the contract.
(iii) In a leave and license agreement, the__________ possession of the premises is
deemed to remain with the licensor and the licensee is said to be in ____________
possession of the said premises.
(iv) A debtor cannot__________or take advantage of non-payment of___________
for assignment.
(v) Articles of association being ___________ document of the company, have
___________ in matters which involve dealing of the company with its own members or third parties.                       (2 marks each)

2. (a) Explain the following :
(i) Preliminary submissions/objections in legal pleadings.
(ii) Special advantages of ‘mortgage by deposit of title deeds’.                 (4 marks each)
(b) What are the different forms of defence that may be adopted by a defendant while replying
to opponent’s pleadings ?                    (8 marks)
Drafting, Appearances and Pleadings

3. (a) In the context of court rulings on merger, discuss and decide the following issues :
(i) Can the exchange ratio approved by shareholders of the merging company be
questioned by a small group of dissenting shareholders ?
(ii) Is the transferring company justified in excluding assets held on lease and license
arrangement from those transferred to the transferee company ?
(iii) Whether there was contravention of section 393(1)(a) of the Companies
Act, 1956 inasmuch as the fact that the Chartered Accountant entrusted with the
valuation of the shares was a director of the amalgamating company had not
been disclosed ?                   (4 marks each)
(b) State, with reasons in brief, whether the following statements are true or false :
(i) Under section 17 of the Telecom Regulatory Authority of India Act, 1997
(TRAI), as amended in 2002, a Company Secretary can appear and plead for his
company’s case before the TRAI Appellate Tribunal without obtaining a certificate
of practice from the Institute of Company Secretaries of India.
(ii) Recitals in a deed, if ambiguous, can operate as estoppel.             (2 marks each)
4. Write notes on any four of the following :
(i) Irrevocable power of attorney
(ii) Amendment of the pleadings with reference to the general rule ‘no pleadings, no evidence’
(iii) Extinction of a trust
(iv) Letters of authority
(v) Mode of transfer of actionable claims.                     (4 marks each)

5. (a) Drafting of a sale deed of immovable property requires comprehensive coverage of
technicalities like offer, transfer, etc. Mention eight important covenants of sale deed of
ABC Company’s factory premises.           (8 marks)

(b) Match the following :
(i) Principal debtor (a) Meetings
(ii) Del credere (b) Arbitration
(iii) Award (c) Written statement
(iv) Notice (d) Guarantee
(v) Dilatory pleas (e) Agency
(vi) Declaration (f) Application
(vii) Petition (g) Testatum
(viii) Deed (h) Affidavit.
(1 mark each)

6. (a) Draft a deed of sub-lease with the permission of Vijay, the original lessor between Amar
(sub-lessor) and Binod (the sub-lessee) in respect of Survey No. 786, Part I, being used
as agricultural land admeasuring 50 acres situated on the eastern bank of Varuna river
in Varanasi District (UP) demised to the original lessor, Vijay, for a period of 30 years
w.e.f. 1st January, 2012 and covenanted for renewal for three consecutive periods of
30 years each; though the sub-lease has to be initially valid for 30 years only.       (12 marks)
(b) Select the odd term out and briefly justify your answer :
(i) (a) Deed pool; (b) deed poll; (c) indenture; (d) cyrographum.
(ii) (a) Compromise; (b) amalgamation; (c) merger; (d) takeover.                   (2 marks each)

7. (a) State the ten essential ingredients of an affidavit conforming to the provisions of
Order XIX, Rule 1 of the Code of Civil Procedure, 1908.                 (10 marks)
(b) Distinguish between the following :
(i) ‘Performance guarantee’ and ‘fidelity guarantee’.                    (3 marks)
(ii) ‘Set-off’ and ‘counter claim’ in the light of case law on counter claim.            (3 marks)

8. Examine and comment on the following :
(a) Applicant company’s request to convene an extraordinary general meeting was rejected
by the respondent company on the ground that the Company Secretary is not authorised
to sign the request. The Company Law Board upheld the ground. In the light of decided
case law, critically evaluate the correctness or otherwise of the decision of the Company
Law Board.                (10 marks)
(b) No special skills except a good knowledge of language is necessary for drafting a good
legal document.          (6 marks)

ICSI Previous papers Company Secretarial practice

ICSI Previous papers

Professional Programme Module 1

Company Secretarial practice

June 2012

Time allowed : 3 hours

Maximum marks : 100
Total number of questions : 8
NOTE : 1. Answer SIX questions including Question No.1 which is compulsory.

2. All references to sections relate to the Companies Act, 1956 unless stated otherwise.
1. Draft any four of the following (a) in case of a resolution, the body to consider the same
and the type of resolution; and (b) in other cases person authorised to issue the same. In
all cases, the basis which gives rise to drafting should also be mentioned :
(i) Resolution recommending payment of dividend on equity shares out of current profits.
(ii) Resolution for transmission of shares.
(iii) An affidavit verifying the contents of the petition on behalf of the company.
(iv) Notice of adjourned Board meeting.
(v) A resolution to borrow money, not being a temporary loan, which will make the total
borrowed sum exceed the aggregate of company’s paid-up share capital and free reserves.
(5 marks each)

2. Distinguish between any four of the following :
(i) ‘Adjournment of a meeting’ and ‘postponement of a meeting’.
(ii) ‘Additional director’ and ‘alternate director’.
(iii) ‘Dematerialisation of securities’ and ‘rematerialisation of securities’.
(iv) ‘Inspection’ and ‘investigation’.
(v) ‘A company limited by guarantee’ and ‘an unlimited liability company’.      (4 marks each)

3. (a) (i) Who all are required to sign annual return of companies having share capital
under the Companies Act, 1956 ?
(ii) Mention any four particulars that an annual return of companies having share
capital must contain.               (2 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) A copy of the compliance certificate should be attached with _____________,
where the company does not have a whole-time Company Secretary.
(ii) Secretarial Standard – 7 relates to_____________.
(iii) Interim dividend _____________ be paid on preference shares.
(iv) E-form_____________ is a return in respect of buy-back of securities.
(1 mark each)
Company Secretarial Practice
(c) State, with reasons in brief, whether the following statements are true or false :
(i) Rights shares means shares which are issued by a newly formed company.
(ii) A company should file its annual return within six months of the close of the
financial year.
(iii) The shareholders of a company which has adopted Table-A of the Companies
Act, 1956 can increase the rate of dividend recommended by the Board of
directors in its annual general meeting.
(iv) Debentures with voting rights can be issued only if permitted by the articles of
association.                 (2 marks each)

4. (a) Bring out the procedure for incorporation of a company as subsidiary of an existing
company.
(8 marks)
(b) Write the most appropriate answer from the given options in respect of the following :
(i) Default in filing of annual return makes the company and officer in default liable
to be punished with fine which may extend to —
(a) `500 per day
(b) `50 per day
(c) `100 per day
(d) `1,000 per day.
(ii) Which one of the following forms needs to be filled-in for filing the order of the
Company Law Board/High Court —
(a) e-Form 21
(b) e-Form 61
(c) e-Form 23
(d) e-Form 18.
(iii) Intimation to keep the books of account at a place other than the registered office
of the company is required to be filed within how many days from the date of
passing of the Board resolution ––
(a) 30 days
(b) 7 days
(c) 60 days
(d) 120 days.
(iv) The satisfaction of charge is required to be notified to the Registrar of
Companies in —
(a) e-Form 8
(b) e-Form 17
(c) e-Form 21
(d) e-Form 23.                                       (1 mark each)

(c) Do you agree with the following statements ? Give brief reason(s) in support of your
answer :
(i) In a scheme of amalgamation, shareholders of Company-A were offered shares
of Company-B in lieu of shares held by them in Company-A. Can the offer
letter issued by Company-B to the shareholders of the Company-A be regarded
as prospectus ?
(ii) Preference shareholders have the same voting rights as the equity shareholders.
(2 marks each)

5. (a) “Failure to file annual return is a continuing offence.” Comment.       (4 marks)
(b) Boss Ltd. issued 2,00,000 equity shares of `10 each. You are allotted 100 shares. Explain
any eight rights you have as a member of the company.         (4 marks)
(c) Amulya Ltd. has received an application for transfer of 1,000 equity shares of `10 each
fully paid-up in favour of Amar. On scrutiny of the application form, it was found
that Amar is a minor. Advise the company regarding the contractual liability of a minor
and whether shares can be allotted to Amar by way of transfer.           (4 marks)
(d) How does a director resign from the Board of directors in a private limited company,
if the Board of directors fails to accept his resignation ?            (4 marks)

6. (a) The articles of association of a listed company has fixed payment of sitting fee for
each meeting of directors subject to a maximum of `10,000. In view of increased
responsibilities of independent directors of listed companies, the company proposes to
increase the sitting fee to `25,000 per meeting. As a Company Secretary, advise the
company about the requirements under the Companies Act, 1956 to give effect to this
proposal.             (6 marks)
(b) What is meant by compoundable and non-compoundable offences ? State whether the
following offences are compoundable or non-compoundable also mentioning the authority
which can compound the offence in case of compoundable offences :
(i) Failure to hold an annual general meeting of the company.
(ii) Failure to file copies of annual accounts with the Registrar of Companies.
(iii) An officer of a company who inspite of court’s order to vacate the company’s
property, continues to occupy the same.
(iv) Non-distribution of dividend to the members within the prescribed time.        (6 marks)
(c) Explain the provisions of the Companies Act, 1956 relating to ‘resolutions requiring
special notice’. Identify the resolutions that require ‘special notice’ under the Companies
Act, 1956.             (4 marks)

7. (a) Mention the provisions of the Singapore Companies Act relating to formation of
companies.           (8 marks)
(b) “The provisions of the Hong Kong Companies Ordinance relating to formation of an
incorporated company are broadly similar to the provisions of the Companies Act, 1956.”
Comment.           (8 marks)

8. (a) Outline the procedure involved for striking off the names of companies by the Registrar
of Companies under section 560.          (6 marks)
(b) Love All Ltd. was registered in the year 2005 under the Companies Act, 1956. The
management of the company decides to make donation to recognised political party.
Advise the management about the restrictions and the extent upto which such
donation can be made. Will it make any difference if Love All Ltd. was registered
in the year 2009 ?                  (6 marks)
(c) The principal business of Grow Fast Ltd. was the acquisition of vacant plots of land
and to build/erect houses. In the course of transacting the business, the Chairman of
the company acquired the knowledge of arranging finance for the development of land.
Grow Fast Ltd. introduced a financier to another company Ajay Ltd. and received an
agreed fee of `2 lakh for arranging the finance. The memorandum of association of
the company authorises the company to carry on any other trade or business which in
the opinion of the Board of directors can be advantageously carried on by the company
in connection with the company’s general business. Referring to the provisions of the
Companies Act, 1956, examine the validity of the contract carried out by Grow Fast
Ltd. with Ajay Ltd.           (4 marks)

ICSI Previous papers Economics and Statistics

ICSI Previous papers 

Foundation Course

Economics and Statistics

Dec 2012

Time allowed : 3 hours Maximum marks : 100
Total number of questions : 8 
PART –– A
(Answer Question No.1 which is compulsory and any two of the rest from this part.)
1. (a) State, with reasons in brief, whether the following statements are true or false :
(i) The term ‘production’ in economics includes only those activities which generate
income.
(ii) The law of variable proportions is a short-term phenomenon.
(iii) In a capitalist economy, all means of production are exclusively owned by the government.
(iv) An item cannot have liquidity unless it can be sold or exchanged in the market.
(v) ‘Free entry and exit’ is one of the important features of competitive markets.  (2 marks each)
(b) Write the most appropriate answer from the given options in respect of the following :
(i) An example of ‘positive economics’ analysis would be —
(a) An analysis of the relation between the price of food and the quantity purchased
(b) Determining how much income each person should be guaranteed
(c) Determining fair price for food
(d) Deciding how to distribute the output of the economy.
(ii) When demand and supply both increase in the same proportion —
(a) Equilibrium quantity remains unchanged
(b) Price increases
(c) Equilibrium price remains same
(d) Quantity decreases.
(iii) The study of the theory of a firm is an example of —
(a) Macro economics
(b) Micro economics
(c) Non-economic activity
(d) Business activity.
Economics and Statistics
(iv) In ordinal utility theory, utility is —
(a) Not expressed in absolute units
(b) Expressed in absolute units
(c) Expressed as elasticity of price
(d) Expressed as elasticity of supply.
(v) In long run, equilibrium of a firm in perfect competition would be —
(a) AC>AR>MC>MR
(b) AC<AR<MC<MR
(c) AC=AR=MC=MR
(d) AC=AR and MC>MR.
(vi) Sector which includes agriculture and activities like forestry, poultry farming,
animal husbandry, etc., is known as —
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Organised sector.
(vii) Balance of payments is a —
(a) Systematic records of all trade transactions between two countries
(b) Systematic record of all monetary transactions between residents of one
country and the residents of the rest of the world in a year
(c) Systematic record of all debts to and from other countries
(d) None of the above.
(viii) The transaction version of the quantity theory of money was put forward by —
(a) Pigou
(b) Marshall
(c) Keynes
(d) Fisher.

(ix) If M1=Currency; M2=Banks’ money; P=Average price; T=Aggregate volume of
all items sold and V1 and V2 are their velocities respectively, then according to
quantity theory of money (Fisher’s equation) —
(a) M1V1 = M2V2 = PT
(b) M1V1 + M2V2 = PT
(c) M1V1 < M2V2 < PT
(d) M1V1 > M2V2 > PT.
(x) World Trade Organisation (WTO) is a system of rules dedicated to open, fair
and —
(a) Promote competition for most-favoured nation (MFN)
(b) Undistorted competition
(c) Check trade barriers by General Council of WTO
(d) Periodical review of trade policy by General Council of WTO.
(1 mark each)
2. (a) Distinguish between any three of the following :
(i) ‘Average variable cost’ and ‘marginal cost’.
(ii) ‘Arc elasticity’ and ‘point elasticity’.
(iii) ‘Demand deposit’ and ‘time deposit’.
(iv) ‘Factor cost’ and ‘market price’.
(3 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) In _______ market, product differentiation is the key feature.
(ii) _________ can be defined as the addition to total revenue when the quantity
sold is increased by one unit.
(iii) According to the Micro, Small and Medium Enterprises Development Act, 2006,
enterprises have been divided broadly into two categories — one as enterprises
engaged in the manufacture or production of goods and the other as the
enterprises engaged in providing or rendering of ___________.
(iv) _________ imply the sale or purchase of approved securities by the Central
Bank in the open market.
(v) An item like milk has _____________ price elasticity of demand.
(vi) The nature of unemployment in India sharply differs from one that prevails in
developed countries, as most of it is in the form of __________ unemployment.
(1 mark each)
3. Attempt any three of the following :
(i) Discuss the relationship between demand and leading determinants of demand.
(ii) Explain ‘monopoly’ and its salient features.
(iii) State the objectives of monetary policy and its role in India.
(iv) What do you understand by the term ‘globalisation’ ? Elaborate its gains both in general
and in particular to India.
(5 marks each)
4. Attempt any three of the following :
(i) Why does the supply curve slope upward from left to right ?
(ii) Why do consumers suffer in the monopolistic competition ?
(iii) Discuss the salient features of India’s tax system.
(iv) Explain the measures taken to tackle the supply side management in Indian economy
since 1991.         (5 marks each)
PART — B
(Answer Question No.5 which is compulsory
and any two of the rest from this part.)
5. (a) State, with reasons in brief, whether the following statements are true or false :
(i) Statistics have no limitations.
(ii) Mode is affected by extreme observations.
(iii) Value of standard deviation is only positive.
(iv) Secular trend variations are of regular nature and repeat after a fixed interval of time.
(v) Same weight is given to all commodities in a weighted index number.       (2 marks each)
(b) Write the most appropriate answer from the given options in respect of the following :
(i) “Statistics may be defined as the science of collection, presentation, analysis and
interpretation of numerical data.” This definition of statistics was given by —
(a) Lovin
(b) Croxton and Cowden
(c) A. L. Bowley
(d) King.
(ii) Frequency of a class per unit width that indicates concentration of frequency in
the class is known as —
(a) Frequency distribution
(b) Frequency density
(c) Class width
(d) Class interval.
(iii) Index numbers that measure the changes in total money worth during some
period compared with other period are known as —
(a) Quantity index numbers
(b) Value index numbers
(c) Wholesale price index numbers
(d) Retail price index numbers.
(iv) In case of a symmetrical distribution —
(a) Mean = median = mode
(b) Mode = 3 median – 2 mean
(c) Mode/median = mean
(d) Mode – mean = median.
(v) Harmonic mean of 400, 100, 300, 200 is —
(a) 250
(b) 1000
(c) 192
(d) (250)2.
(vi) The organisations such as Reserve Bank of India (RBI) and National Sample
Survey Office (NSSO) collect and publish ––
(a) Derivative data
(b) Mixed data
(c) Secondary data
(d) Primary data.
(vii) The correlation co-efficient lies between —
(a) –1 and +1
(b) 0 and +1
(c) 0 and –1
(d) +1 and +2.
(viii) Seasonal variations are absent if the time interval between successive observations
is —
(a) Less than or equal to one year
(b) Equal to one year
(c) More than one year
(d) None of the above.
(ix) In any pie-chart, the sum of central angle is ––
(a) 90 degree
(b) 180 degree
(c) 270 degree
(d) 360 degree.
(x) Which one of the following is a positional average —
(a) Arithmetic mean
(b) Geometric mean
(c) Median
(d) Harmonic mean.
(1 mark each)
6. (a) Distinguish between any three of the following :
(i) ‘Harmonic mean’ and ‘geometric mean’.
(ii) ‘Primary data’ and ‘secondary data’.
(iii) ‘Census investigation’ and ‘sample investigation’.
(iv) ‘Dorbish and Bowley’s index number’ and ‘Fisher’s ideal index number’.
(3 marks each)
(b) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) The word ‘statistics’ is used in two senses, i.e., statistical data and ____________.
(ii) In __________ classification, data are classified on the basis of certain
characteristics or presence and absence of attributes like intelligence, honesty,
occupation, etc.
(iii) ________of a distribution divides a series of observations into 100 equal parts.
covers about __________ of thes 2±(iv) In an approximate normal distribution x
distribution.
(v) The study of association between two characteristics can be divided into two
broad categories, i.e., correlation and ____________.
(vi) _____________ of data implies the removal of the effect of seasonal variations.
(1 mark each)
7. Attempt any three of the following :
(i) “The two ogives intersect at median.” Define ‘ogive’ and elaborate the statement with
the help of an example.
(ii) Explain Spearman’s rank correlation method.
(iii) “Forecasting can be done on the basis of collection of data or obtaining opinion of
the experts.” Explain.
(iv) From the following, find seasonal indices (upto two decimal places) by using moving
average method :
Year          Quarter 1        Quarter 2        Quarter 3          Quarter 4
2005             30                     20                     25                     27
2006             23                     25                     30                     20
2007             24                     23                     29                      21
2008            21                     45                      26                      19
2009            25                    35                      40                      25
(5 marks each)

8. Attempt any three of the following :
(i) Represent the following data by histogram :
Class interval   0-50   50-100   100-150   150-200   200-250   250-300
Frequency          12           5            22               3                 15            7
(ii) Find the co-efficient of correlation between the marks obtained by 12 students of a
post-graduate course in two papers of Economics and Statistics of 100 marks each from
the following by using the method of calculating co-efficient of correlation by assuming
mean. Also comment upon the co-efficient of correlation so arrived :
Marks in
Economics       75    80   75   83   78    84   85   60   79   74   81   77
Marks in
Statistics           79    85   70   80   80   90   88   63   87    73  82  76
(iii) The mean of a certain number of observations is 50. If three numbers 70, 60 and
65 are added to this data, the mean rises to 55. Find the number of items in the original
data ?
(iv) The following is the distribution of aggregate percentage of marks of students in a class :
Aggregate
marks (%)         30-40   40-50    50-60  60-70   70-80   80-90   90-100
Number of
students          1           3           10           20           15           6                5
.s ±Calculate the percentage of students having the range x
(5 marks each)