Secretarial Practice Set 1 2021-2022 HSC Commerce (English Medium) 12th Board Exam Question Paper Solution

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Secretarial Practice [Set 1]
Marks: 80 Academic Year: 2021-2022
Date & Time: 11th March 2022, 10:30 am
Duration: 3h30m
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Note :

  1. All questions are compulsory.
  2. Figures to the right indicate full marks for the questions.
  3. Figures to the left indicate question numbers.
  4. Answer to every question must be started on a new page.

[20] 1
[5] 1.A | Select the correct answer from the options given below and rewrite the sentences:
[1] 1.A.1

Select the correct answer from the options given below and rewrite the statement.

______ is related to money and money management.

Production

Marketing

Finance

Concept: Finance
Chapter: [0.01] Introduction to Corporate Finance
[1] 1.A.2

Secured debentures must be redeemed within ______ from the date of their issue.

10 days

10 years

15 years

Concept: Provisions for Issue of Debentures as per Companies (Share Capital and Debentures) Rule 2014
Chapter: [0.04] Issue of Debentures
[1] 1.A.3

India has a ______ depository system.

sole

multi

single

Concept: Depository System
Chapter: [0.09] Depository System
[1] 1.A.4

Select the correct answer from the options given below and rewrite the statement.

The dividend is to be paid to the shareholders within ______ days from the date of declaration.

30

40

20

Concept: Specimen Letters
Chapter: [0.06] Correspondence with Members
[1] 1.A.5

Select the correct answer from the options given below and rewrite the statement.

The accumulated dividend is paid to ______ preference shares.

redeemable

cumulative

convertible

Concept: Sources of Owned Capital - Shares
Chapter: [0.02] Sources of Corporate Finance
[5] 1.B

Match the pairs:

Group 'A' Group 'B'
(a) Investment in debenture (1) Deals with acquisition and use of capital.
(b) Financial market (2) Must inform the stock exchange about dividend declaration.
(c) Price of shares mentioned in the prospectus (3) Trading of financial securities
(d) Corporate finance (4) Safe and secure investment
(e) Listed company (5) Must inform the government about dividend declaration
  (6) Fixed price issue method
  (7) Risky investment
  (8) Trading of commodities.
  (9) Deals with acquisition and use of assets.
  (10) Book-Building Method.
Concept: Concept of Financial Markets
Chapter: [0.07] Financial markets [0.11] Financial Market
[5] 1.C | State whether the following statements are True or False:
[1] 1.C.1

State whether the following statement is True or False:

Dividends can be paid out of capital.

True

False

Concept: Legal Provisions on Dividend
Chapter: [0.1] Dividend and Interest
[1] 1.C.2

State whether the following statement is True or False.

The deposit can be accepted for a maximum of 6 months.

True

False

Concept: Sources of Borrowed Capital - Acceptance of Deposits
Chapter: [0.02] Sources of Corporate Finance [0.05] Deposits
[1] 1.C.3

State whether the following statement is true or false.

Depository bank stores the shares on behalf of GDR holder.

True

False

Concept: Sources of Borrowed Capital - Global Depository Receipt (GDR)
Chapter: [0.02] Sources of Corporate Finance
[1] 1.C.4

State whether the following statement is True or False:

The securities market is an unorganized marketplace in India.

True

False

Concept: Types of Financial Market - Secondary Market
Chapter: [0.11] Financial Market
[1] 1.C.5

State whether the following statement is True or False:

Bonus shares are fully paid-up shares.

True

False

Concept: Methods of Issue of Shares
Chapter: [0.03] Issue of Shares
[5] 1.D | Correct the underlined word and rewrite the following sentences:
[1] 1.D.1

Correct the underlined word and rewrite the following sentence:

Depositors are owners of the company.

Concept: Correspondence with Depositors - Specimen Letters
Chapter: [0.08] Correspondence with Depositors
[1] 1.D.2

Correct the underlined word and rewrite the following sentence.

Retained earnings is an external source of finance.

Concept: Sources of Owned Capital - Retained Earnings
Chapter: [0.02] Sources of Corporate Finance
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[1] 1.D.3

Correct the underlined word and rewrite the following sentence:

To rate its debentures a company appoints underwriters.

Concept: Requirements as per SEBI
Chapter: [0.04] Issue of Debentures
[1] 1.D.4

Correct the underlined word/s and rewrite the following sentence.

Companies sell fresh shares for the first time to the public in the secondary market.

Concept: Types of Financial Market - Secondary Market
Chapter: [0.11] Financial Market
[1] 1.D.5

Correct the underlined word and rewrite the following sentence.

Preference shareholders get dividends from residual profits.

Concept: Legal Provisions on Dividend
Chapter: [0.1] Dividend and Interest
[8] 2 | Explain the following terms/concepts (Any FOUR):
[2] 2.A

Explain the following term/concept:

Production Cycle

Concept: Capital Requirements
Chapter: [0.01] Introduction to Corporate Finance
[2] 2.B

Explain the following term/concept:

Overdraft

Concept: Sources of Borrowed Capital - Commercial Banks
Chapter: [0.02] Sources of Corporate Finance
[2] 2.C

Explain the following term/concept.

Employee Stock Purchase Scheme

Concept: Methods of Issue of Shares
Chapter: [0.03] Issue of Shares
[2] 2.D

Explain the following term/concept:

Depository Participant (DP)

Concept: Constituents of Depository System
Chapter: [0.09] Depository System
[2] 2.E

Explain the following term/concept.

Rate of Dividend.

Concept: Dividend
Chapter: [0.1] Dividend and Interest
[2] 2.F

Explain the following term/concept.

Rights Issue

Concept: Methods of Issue of Shares
Chapter: [0.03] Issue of Shares
[6] 3 | Study the following case/situation and express your opinion (Any TWO):
[3] 3.A

Study the following case/situation and express your opinion.

Sunflower limited company proposes to issue debentures to the public to raise funds. After discussions, the Board of directors has decided to issue secured, redeemable, non-convertible debentures with o tenure of ten years. Please advise the Board on the following matters:
  1. Should the company appoint a Debenture Trustee?
  2. Should the company create a charge on its assets?
  3. Can the tenure of debentures be less than ten years?
Concept: Sources of Borrowed Capital - Debentures
Chapter: [0.02] Sources of Corporate Finance
[3] 3.B

Study the following case/situation and express your opinion.

ABC Company Ltd. is an eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits.
  1. Can the company accept deposits in joint names?
  2. Can the company accept deposits from its members? 
  3. Can the company issue secure deposits?
Concept: Procedure for Accepting Deposit from Members
Chapter: [0.05] Deposits
[3] 3.C

Study the following case/situation and express your opinion.

Joy ltd. company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares.
  1. Should it go to the primary market or secondary market to issue its shares?
  2. Should it offer its shares through public offers or rights issues?
  3. What will be the issue of Equity shares by Joy Ltd. co. called, IPO or FPO?
Concept: Types of Financial Market
Chapter: [0.11] Financial Market
[12] 4 | Distinguish between (Any THREE):
[4] 4.A

Distinguish between the following.

Fixed Capital and Working Capital.

Concept: Capital Requirements
Chapter: [0.01] Introduction to Corporate Finance
[4] 4.B

Distinguish between the following.

Transfer of Shares and Transmission of Shares

Concept: Transfer of Shares
Chapter: [0.03] Issue of Shares
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[4] 4.C

Distinguish between the following.

Dematerialization and Rematerializotion

Concept: Concepts/Terms Related to Depository System
Chapter: [0.09] Depository System
[4] 4.D

Distinguish between the following:

Primary market and Secondary market

Concept: Types of Financial Market - Secondary Market
Chapter: [0.11] Financial Market
[8] 5 | Answer in brief (Any TWO):
[4] 5.A

Answer in brief.

State the features of Bonds.

Concept: Sources of Borrowed Capital - Bonds
Chapter: [0.02] Sources of Corporate Finance
[4] 5.B

Answer in brief

Explain any four advantages of Depository system to Investor.

Concept: Depository System
Chapter: [0.09] Depository System
[4] 5.C

Answer in brief.

Explain the features of Interest.

Concept: Interest
Chapter: [0.1] Dividend and Interest
[8] 6 | Justify the following statements (Any TWO):
[4] 6.A

Justify the following statement.

The Board of Directors can refuse transfer of shares.

Concept: Transfer of Shares
Chapter: [0.03] Issue of Shares
[4] 6.B

Justify the following statement.

The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.

Concept: Securities and Exchange Board of India (SEBI)
Chapter: [0.12] Stock Exchange
[4] 6.C

Justify the following statement:

Unpaid dividends cannot be used by the company.

Concept: Unpaid and Unclaimed Dividend
Chapter: [0.1] Dividend and Interest
[4] 6.D

Justify the following statement.

A company can issue duplicate share certificate.

Concept: Share Certificate
Chapter: [0.03] Issue of Shares
[10] 7 | Attempt the following (Any TWO):
[5] 7.A

Attempt the following.

Write a letter to the member for the payment of the Interim dividend electronically.

Concept: Specimen Letters
Chapter: [0.06] Correspondence with Members
[5] 7.B

Write a letter to the Debentureholder regarding payment of interest through an interest warrant.

Concept: Correspondence with Debentureholders - Specimen Letters
Chapter: [0.07] Correspondence with Debentureholders
[5] 7.C

Draft a letter of thanks to the depositor of a company.

Concept: Correspondence with Depositors - Specimen Letters
Chapter: [0.08] Correspondence with Depositors
[8] 8 | Answer the following (Any ONE):
[8] 8.A

Answer the following question.

Define preference shares. What are the different types of preference shares?

Concept: Sources of Owned Capital - Shares
Chapter: [0.02] Sources of Corporate Finance
[8] 8.B

Answer the following questions.

Briefly explain the provisions of Companies Act, 2013 for issue of debentures.

Concept: Provisions for Issue of Debentures as per Companies Act, 2013
Chapter: [0.04] Issue of Debentures

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