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M.C.S. DEGREE EXAMINATION, DECEMBER 2009. CORPORATE ACCOUNTING (Old and 2002 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. State the conditions and procedure for the issue of share at discount. 2. Enumerate and describe the various ways of issuing debentures. 3. What is purchase consideration? Explain various methods of its

calculations. 4. Explain the uses and limitations of ratio analysis. 5. Ambross Ltd. issued 2,000 shares of Rs. 100 each at a premium of 10% payable as follows : Rs. 25 on application, Rs. 35 on allotment (including premium), Rs. 20 on first call, Rs. 30 on final call. 1,800 shares were applied for and allotted. All the money was received with the exception of first and final calls on 200 shares held by Rahul. These shares were forfeited. Give journal entries and prepare balance sheet. 6. From the following particulars, determine the maximum remuneration available to a full time director of a manufacturing company. The profit and Loss Account of the company showed a net profit of Rs. 40,00,000 after taking into account the following items : Rs. (a) Depreciation (including special

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depreciation of Rs. 40,000) (b) Provision for income tax

1,00,00 0 2,00,00 0

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(c) Donation to political parties (d) Ex-gratia payment to a worker (e) Capital profit on sale of assets

50,000 10,000

15,000

7. A firm earned net profits during the last three years as follows : I year Rs. 36,000 II Year Rs. 40,000 III year Rs. 44,000 The capital investment of the firm is Rs. 1,00,000 A fair return on the capital, having regard to the risk involved, is 10%. Calculate the value of goodwill on the basis of 3 years' purchase of super profit. 8. A Ltd., agree to take over the business of B Ltd., on the following terms : (a) The shareholders of B Ltd., are to be paid Rs. 25 in cash and the offer of four shares of Rs. 10 each in A Ltd., for every share of B Ltd. B Ltd., has 50,000 equity shares outstanding. The debenture holders holding 5,000 debentures of Rs. 100 each are to be redeemed at a premium of 10%. Cost of liquidation amounting to Rs. 25,000 are to be borne by A Ltd. Compute the purchase consideration. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. What is liquidation? State the various modes of liquidating a company. 2

(b) (c)

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10.Distinguish between the capital profits and revenue profits. 11.Preethy & Co Limited were incorporated on 1.7.2007 to take over the business carried on by Preethy & Co, as going concern with effect from 1.1.2007. The following is the profit and loss account for the year ended 31.12.2007 of Prem & Co.Ltd.
Particulars To Opening stock Rs. 1,20,00 0 Particulars By sales (up to 30.6.02 Rs. 1,00,000) To Purchases To Gross profit c/d Total To Admn. expenses To Directors fee To Selling expenses To Audit fee To Preliminary exp. To Net profit Total 1,75,00 0 75,000 3,70,00 0 18,000 3,000 36,000 1,000 3,000 14,000 75,000 75,000 By Gross profit b/d 3,70,00 0 75,000 By Closing stock 3,00,00 0 70,000 Rs.

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You are required to prepare statement showing the profit earned prior to and after incorporation and state how the profit earned during the respective periods may be dealt with in the accounts. 12.Moon and Star Co. Ltd., is a company with an authorized capital of Rs. 5,00,000 divided into 5,000 equity shares of Rs. 100 each on 31.12.2006 of which 2,500 shares were fully called up. The following are the balances extracted from the ledger as on 31.12.2006. Trial balances of Moon & Star Co. Ltd., Debit Opening stock Purchases Rs. 50,000 2,00,00 0 3 Credit Sales Discount received Rs. 3,25,00 0 3,150

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Debit Wages Discount allowed Insurance (upto 1.3.2006) Salaries

Rs. 70,000 4,200

Credit Profit & Loss A/c Creditors Reserves

Rs. 6,220 35,200 25,000 15,700 2,50,00 0

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6,720 18,500

Loan from M.D. Share capital

Rent General Expenses Printing Advertisements Bonus Debtors Plant

6,000 8,950

2,400 3,800 10,500 38,700 1,80,50 0

Furniture Bank Bad debts Calls-in-arrears

17,100 34,700 3,200 5,000 6,60,27 0 6,60,27 0

You are required to prepare Profit and Loss account for the year ended 31.12.2006 and a balance sheet as on that date. The following further information is given : (a) (b) Closing stock was valued at Rs. 1,91,500 Depreciation on Plant @ 15% and on Furniture

@ 10% should be provided.

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(c)

A tax provision of Rs. 8,000 is considered necessary. June 30, 2006 @ 6%.

The Directors

declared an Interim dividend on 15.8.2006 for 6 months ending wss

13.A Ltd., is absorbed by B Ltd., on the date, the Balance sheet of A Ltd., is as follows :
Liabilities 20,000 Equity shares of Rs. 10 each 20,00,0 00 General Reserve 14,00,0 00 12% Debentures 4,00,00 0 Creditors 1,40,00 0 Staff Provident Fund 2,00,00 0 Workmens Accident compensation Fund (Estimated liability Rs. 10,000) 50,000 41,90,0 00 41,90,00 0 Less : Provision Bank 30,000 Debtors 4,00,00 0 40,000 3,60,000 Stock 2,00,000 Investments 2,50,000 Patents Rs. Assets Machinery Rs. 30,00,00 0 3,50,000

The consideration for absorption is as follows : (a) (b) Payment of Rs. 15 per equity shares in cash. Allotment of one 14% preference shares of Rs. 100 each in B Ltd., for every 4 equity shares held in A Ltd. Allotment of 5 equity shares of Rs. B Ltd., for every 4 equity shares held in A Ltd. The creditors in A Ltd., to B Ltd., A Ltd., include Rs. 100 50,000 each due in by

(c) (d) (e)

The cost of Liquidation amounts to Rs. 10,000. 5

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Close the books of A Ltd., and give opening entries in the books of B. Ltd., wss 14.The following particulars related to a limited company which went into voluntary liquidation : Rs. Preferential creditors Unsecured creditors 6% debentures 25,00 0 58,00 0 30,00 0

The assets realised Rs. 80,000. The expenses of liquidation amounted to Rs. 1,500 and the liquidators remuneration was agreed at 2% on the amount realised and 2% on the amount paid to unsecured creditors including preferential creditors. Show the liquidators final statement of account. 15.Prepare the balance sheet form the following ratios : Current Ratio 2.5 Total assets / net worth 3.5 Sales / fixed assets 6 Sales / current assets 8 Sales / inventory 15 Sales / debtors 18 Annual Sales Rs. 25,00,000.

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M.C.S. DEGREE EXAMINATION, DECEMBER 2009. COMPANY LAW AND PRACTICE (2002 onwards) Time : Three hours Maximum : 100 marks

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SECTION A (5 8 = 40 marks) Answer any FIVE questions in 200 words each. 1. What are the characteristics of a company? 2. What are the contents of articles of association? 3. What is prospectus? State its contents. 4. Explain the rights and liabilities of member. 5. Explain the rules regarding acceptance of deposits by companies. 6. Explain the duties and powers of directors. 7. Explain the procedures regarding statutory meeting. 8. Explain the rule under Foss Vs. Horbottlo Case and state the exceptions. SECTION B (4 15 = 60 marks) Answer any FOUR questions. 9. Discuss the classification of companies. 10.Comment on the doctrines of Ultra vires , constructive notice and indoor management. 11.Explain in detail the modes of becoming member and explain about cessation of membership. 12.Explain creation of charge and inter-corporate investments. 13.What are the requisites of a valid meeting? 14.What are the qualifications, appointment, right and duties of auditors? 15.Briefly explain companies. about the modes of winding up of

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M.C.S. DEGREE EXAMINATION, DECEMBER 2009. GENERAL LAW AND PRACTICE (2002 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. 1. Explain the general principles of interpretation. 2. Briefly explain the fundamental rights of constitutions of India. 3. Explain the elementary knowledge and the structure of civil courts. 4. Write a notes of commerce and industry. 5. What are the various powers of arbitrator? 6. Explain the Act 1908. 7. What the Act 1989? miscellaneous provisions of registration

exemptions

of

under

the

Indian

stamp

8. Explain the consumer dispute redressal agencies. PART B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks. 9. Discuss the rules regarding internal and external aids to interpretation of status. 10.Explain the directive principles of state policy.

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11.What are the few exemptions to the general rules by authorizing parliament to make law in state list? 12.Describe the various consequences of non-registration and miscellaneous provision of registration Act 1908. 13.What is arbitration agreement? How the arbitrator can be appointed? 14.Explain the objectives of consumer protection Act 1986. 15.What is stamping? Explain the various methods of stamping.

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M.C.S. DEGREE EXAMINATION, DECEMBER 2009. INDUSTRIAL LAW AND PRACTICE (2002 onwards/Labour Law 2003 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. Define the terms factory and manufacturing process. 2. Under what circumstances, an employer is not liable to pay compensation under workmens compensation Act, 1923. 3. Define Lay-off. What are its essentials? How does it differ from lock-out? 4. What is ESI fund? State any five purposes for which ESI fund may be expended as per Sec. 28 of ESI Act, 1948. 5. What are the powers of inspectors under EPF and Miscellaneous Provisions Act, 1952? 6. Write a note on eligibility and disqualification for bonus as per payment of Bonus Act, 1965. 7. Explain the concept of continuous service as per payment of Gratuity Act, 1972.

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8. Write a detailed note on the machineries available for settlement of disputes. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Explain the provisions of Factories Act, 1948 relating to the health of workers. 10.Explain the concept of Arising out of and in the course of employment as per workmens compensation Act, 1923. 11.Who are the various authorities under the industrial disputes act, 1947? What are their powers and duties? 12.Discuss the provisions of ESI Act, 1948 regarding different types of benefits provided and the conditions to avail such benefits. 13.Explain the provisions of payment of Gratuity Act, 1972 regarding determination and recovery of gratuity. 14.How is available surplus is calculated under payment of Bonus Act? What part of it can be distributed amongst the employees as bonus? 15.Discuss the duties and liabilities of a registered trade union.

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DISTANCE EDUCATION

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M.C.S. DEGREE EXAMINATION, DECEMBER 2009. CORPORATE FINANCIAL MANAGEMENT (2002 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. Each answer to theory question not to exceed 200 words. 1. State the objectives of financial management. 2. Discuss the criteria for evaluating proposals to minimise risk.

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3. What are the merits of preference shares? 4. Explain the importance of cost of capital. 5. Bring out the assumptions under Modigliani Miller Approach in a perfect market condition. 6. Discuss the need for working capital in a manufacturing industry. 7. How will you estimate the capital requirement of a service organisation? 8. Determination of optimum capital structure is a difficult task Why? PART B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks. Answer to theory questions shall not exceed 4 pages. 9. Enumerate different approaches to measure the return and risk. 10.Discuss the principles of a good financial plan. 11.Explain the features of loan financing facility in the present scenario. 12.Describe in detail various components of working capital. 13.What are the main determinants of Dividend Policy of a firm? 14.The following figures are taken from the current balance sheet of Gulshan & Co.
Rs. Capital Share Premium Reserves Share holders funds 12% irredeemable debentures 8,00,000 2,00,000 6,00,000 16,00,00 0 4,00,000

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An annual ordinary dividend of Rs. 2 per share has just been paid. In the past, ordinary dividends have grown at a rate of 10% per annum and this rate of growth is expected to continue. Annual interest has recently been

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paid on the debentures. The ordinary shares are currently quoted at Rs. 27.5 and the debentures at 80%. Ignore taxation. wss You are required to estimate the weighted average cost of capital (based on market values) for Gulshan & Co. 15.What is Capital Budgeting? Explain any three capital budgeting appraisal methods.

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M.C.S. DEGREE EXAMINATION, DECEMBER 2009. COMPANY SECRETARIAL PRACTICE (Old and 2002 onwards) Time : Three hours Maximum: 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions in about 200 words each. 1. A qualified and well-trained secretary is an asset to a company, elucidate. 2. A promoter stands in a fiduciary position towards the company he promotes. Explain. 3. Enumerate the duties of a company secretary in respect of issue of share certificate. 4. Write a note on the borrowing powers of a company. 5. A minute book is a very important document of a limited company. Indicate the special responsibilities of the secretary in this regard. 6. What are the provisions of the Companies Act which apply both to a managing director and manager?

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7. What are the provisions of the Companies Act 1956 regarding arrangement for the purpose of reconstruction or amalgamation of wss companies? 8. Under what circumstances are auditors automatically reappointed? Give the statutory provisions regarding qualifications and disqualifications of an auditor. PART B (4 15 = 60 marks) Answer any FOUR questions in about 400 words. 9. Discuss the position of a company secretary and explain his rights and liabilities. 10.What is articles of association? How can they be altered? Discuss the limits upon the powers of a company to alter the articles of association. 11.State the statutory rules relating to the holding of annual general meeting and discuss the duties of company secretary in connection with AGM. 12.Discuss the law relating to the remuneration of the directors of a public company. 13.Under what situations may a company be wound up by the court? Describe the duties and powers of liquidator appointed by the court. 14.Describe the secretarial duties in connection with recording and maintenance of minutes. Draft minutes of the first meeting of the board of directors. 15.Outline the duties of company secretary in relation to transfer and transmission of shares.

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M.C.S. DEGREE EXAMINATION, DECEMBER 2009. SECRETARIAL AND MANAGEMENT AUDIT (2002 onwards)

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Time : Three hours

Maximum: 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions.

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1. What are the challenges faced by the Company Secretaries in the Corporate Sector? 2. What are the benefits of Secretarial Audit? 3. Explain the rules applicable to a Secretarial Auditor. 4. What are the scope and importance of a Search Report? 5. Examine the need for Securities Audit. 6. Explain the significance of Compliance Certificate. 7. Discuss the nature of Management Audit. 8. Explain the rights and responsibilities of a Cost Auditor. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Define Professional Misconduct? Misconduct. What are the consequences of

10.Discuss the scope and objectives of Secretarial Audit. 11.Elucidate the regulations of SEBI in preventing the fraudulent and unfair trade practices. 12.Who should conduct management audit and what approach should be followed for it? 13.Discuss the various types of Cost Audit. 14.Explain the rules regarding Cost Audit Report. How cost audit is different from financial audit? 15.Enumerate the Statutory and Statistical Books to be maintained under the Companies Act 1956.

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DISTANCE EDUCATION M.C.S. DEGREE EXAMINATION, DECEMBER 2009. TAX LAWS (2002 onwards) Time : Three hours Maximum : 100 marks SECTION A (5 8 = 40 marks) Answer any FIVE questions. 1. Discuss how the Residential status of an individual is determined under the Income Tax Act. 2. Discuss the provisions of Income Tax Act relating to clubbing of income. 3. Enumerate any four assets which are exempt from wealth tax. 4. Discuss the objectives and advantages of CENVAT. 5. What do you understand by Sales in the course of imports and Exports under the CST Act? 6. List out any Eight services which are taxable under the Service Tax. 7. Kavi owns two houses both of which are Self Occupied. The particulars of the houses are given as under :
House I Municipal value Fair Rental value Standard Rent Interest on Borrowed capital paid Municipal Taxes paid 10% of Municipal value 70,000 78,000 20,000 House II 90,000 1,20,00 0 1,00,00 0 20,000

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Find the Income Taxable under the head Income From House Property. 8. Mr. Dayanand is employed as a manager in the State Bank of India Mumbai. Following are the particulars of his salary for the financial year 200809.
Basic pay Dearness Allowance (forming part) Dearness Allowance Bonus Rs. 2,500 p.m. 400 p.m. 600 p.m. 3,000 p.a.

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He has been provided furnished house, the cost of furniture and household appliances being Rs. 10,000. The bank pays Rs. 2,000 p.m. for the said wss accommodation but deducts only Rs. 250 p.m. Determine the value of house accommodation. SECTION B (4 15 = 60 marks) Answer any FOUR questions. 9. Mr. K. furnishes the following particulars of his income and investments for the year ending 31st March 2009 :
Salary Bonus Employer and employee both contributed @ 15% of salary in Recognized Provident Fund Interest Credited to R.P.F. @ 12% Conveyance allowance specially for the purpose of employment Contribution to Public Provident Fund L.I.C. Premium paid (sum Assured Rs. 1,00,000) Rent Received from House property Municipal Taxes paid by him for the above property 4,000 20,000 23,000 10,000 p.m. 1,500 6,000 Rs. 1,68,000 4,000

He has taken a housing Loan from H.D.F.C. for the above House Property and paid Rs. 8,000 and E.M.I. per month. The principal Portion included in the above payment is Rs. 66,000 for the year. Contribution to Pension Fund qualifying U/s. 80 CCC Payment for Mediclaim insurance policy 15,000 12,000

His father aged about 70 is suffering from Cancer and he incurred Rs. 75,000 towards his treatment Donation to an orphanage on his birth day 20,000

Calculate his Total Income. 10.From the particulars given by Ramesh, compute the taxable capital gain for the assessment year 200910.
Name of the asset Govt. Securities Furniture (W.D.V. On 1.4.2008 Date of Purchase 1.10.06 Cost Rs. 10,00 0 Date of Sale Rs. 30.6.08 Sale Price Rs. 15,000 Exp. Rs. 200

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Rs. 4,000) Land (F.M.V. on 1.4.81 Rs. 20,000) Residential house

15.2.92 10.1.72 1.12.85

5,000 20,00 0 60,00 0

20.2.09 6.1.09 5.5.08

3,000 50,000 3,00,000

1,00 0 2,00 0

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The assessee has no other residential house on 5.5.2008. He purchased another house for residential purpose on 20.3.2009 for Rs. 90,000. C.I.I. for 200708 is 551, 199495 is 259, 199091 is 182 and for 198586 is 133, 200809 : 582. 11.Mr. X an individual furnishes the following particulars of his assets and liabilities as on 31st March 2009. Calculate Wealth Taxable.
Assets Residential house at New Delhi Residential house at Agra Plot of land comprising an area of 450 sq. metre at Mumbai House at New Delhi exclusively used for carrying on his business Commercial complex at Agra Residential house at Chennai let out for 335 days during the relevant previous year Motor car used in business of running them on hire Shares in private limited companies Cash in hand Gold jewellery Liabilities : Loan borrowed for purchase of land at Mumbai Loan borrowed for purchase of shares in private limited companies Loan borrowed for purchase of gold jewellery 10 6 20 10 20 3 25 12 Rs. (In Lakhs) 25 15 60

15 20

12.Explain any two types of clearances of goods under the Central Excise Laws. 13.List out any ten purposes for which imports/exports are prohibited in India. 14.Outline the procedure for Registration of Dealers under the Central Sales Tax Act 1956. 15.Write a note on Filling of returns under the Service Tax Laws.

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DISTANCE EDUCATION

M.C.S. DEGREE EXAMINATION, DECEMBER 2009. ECONOMIC AND OTHER LEGISLATIONS (2002 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. 1. List out the powers MRTP commission. 2. Explain the need for regulation of industrial undertakings through licensing system. 3. Bring out the provisions relating to offences and appeals under the copy Right Act 1957. 4. Enumerate the objects and need for trade marks act 1999. 5. What is Patent Right? What do you mean by infringement of patents? 6. Who is an Occupier? What are his duties under Air (prevention and control of pollution) Act 1981? 7. Explain the function of state boards as provided in water (prevention and control of pollution) Act. 8. Explain briefly the powers of SEBI. PART B (4 15 = 60 marks) Answer any FOUR questions. 9. Describe the powers of Central Government with regard to prevention of concentration of economic power and restrictive trade practices.

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10.Explain the provisions of industries (development and regulation) Act 1951 in connection with investigation and take over of management of wss industrial undertaking. 11.Enumerate the procedure for registration of copy right with appropriate authority. 12.Write a note on : (a) (b) Assignment of trade marks. Passing on.

13.Write an extensive note on surrender and revocation of patents. 14.Elucidate the powers of the central Government under Air (Prevention and control of pollution) Act. 15.Explain the regulatory framework for environmental Clearances.

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M.C.S. DEGREE EXAMINATION, DECEMBER 2009. FINANCIAL SERVICES (2002 onwards) Time : Three hours Maximum : 100 marks PART A (5 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. 1. What is financial market? Explain the developments of it. 2. List out need for financial innovation. 3. What are the special features of a hire purchase financing? 4. Explain the structure of Indian mutual funds. 5. What is factoring? State the types of it. 6. List out the modes of consumer credit. 19

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7. Explain the SEBI guidelines on merchant banking. 8. What is credit rating? Describe the benefits of it? PART B (4 15 = 60 marks) Answer any FOUR questions. All questions carry equal marks. 9. What are finance companies? Explain briefly the strength and weakness of it. 10.Describe the different types of leasing. 11.Explain the features of venture capital and consumer financing. 12.List out the different variants of under writing. 13.Explain how the factoring differ from bills discounting. 14.Give the details of RBIs prudential norms for NBFCs. 15.Explain the fund and non-fund based services of commercial banks.

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