Corporate and Other Laws - May 2025

(a) Amrish after completing his post-graduate degree in mechanical engineering from the United Kingdom returned back to India. Although he got a good placement in a UK based company but he thought to build his own business empire in India. Amrish belongs to Barmer district (Rajasthan) where his parents have agricultural land of 20 acres. He planned to manufacture commercial drones for the use of agricultural harvesting and assist in supply chain process. For this purpose, he planned to incorporate…

(a) Referring to the provisions of the Companies Act, 2013, state whether the following amounts received by the company constitute deposit or not: (i) IQ Books Limited received share application money of ` 50 crore from investors on 8th December, 2024. As the issue was under subscribed, the company refunded the amount to the investors on 20th February, 2025. (ii) Suraj, Raj and Tejas are the promoters of Precious Jewellers Limited. They borrowed a sum of ` 200 crore from…

Disclosure required to be made on the face of the Prospectus. (ii) Conditions in regard to Experts' Statement. (iii) Date of publication of prospectus. (5 Marks) (b) Vital Pharmacy Limited is engaged in the manufacturing of medicines to cure skin diseases. It has established a unit in Germany. It registered few patents in Germany and raised funds by creating a charge on its stock in Germany and the patent rights. The company registered the charge. created on its stock but…

(a) XYZ Ltd., uses an Accounting Software for recording its financial transactions. The statutory auditor of the company while auditing finds the following issues: Some journal entries were altered without creating edit logs for all such changes. The audit trail feature was disabled for certain modules (e.g., inventory adjustments, inter-company transactions). Keeping in view of the above issue, advice the company on the followings: 22 (i) CORPORATE AND OTHER LAWS Audit trail and Edit Log requirements (ii) The back-up of…

(a) Write down functions and duties of the National Financial Reporting Authority. (5 Marks) (b) Write down any five points on the distinction between LLP and Limited Liability Company. (5 Marks) (c) Dream Builders Limited was engaged in the activity of building and selling budget friendly apartments. It recently started a new project at Noida. Pending approval, the builders started the construction work. On verification of documents, the Corporation of Noida refused to sanction the permission and the Assistant Commissioner…

DNC Hydro Limited, obtained a loan of ` 3,000 crores from SPM Bank in April, 2021 to finance its hydropower generation project. To secure the loan, the company created a charge on its assets including land, plant and machinery. The charge was registered with the ROC in form CHG-1. In September, 2024, DNC Hydro Limited fully repaid the loan and SPM Bank issued no dues certificate to the company. However, due to internal compliance oversight, DNC Hydro Limited failed to…