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March 2008 Secretarial Practice

PAPER ONE

MARKS : 80      TIME : - 3 HRS.

Q.1 (A) Select the correct answer form the possible options given below and rewrite the statements:                5 Marks

1.      Debentures are issued to raise _______ capital. 
        (borrowed, owned, internal)
2.      A company raises debt capital through the issue of __________. (equity shares, preference shares, debentures)
3.      Dematerialization is ________ (conversion of physical securities into electronic form, conversion of share certificate into share warrant, conversion of shares into stock)

4.      Depositors are _________ of a company. (members, creditors, debtors)

5.      The market which provides short term fund is ___________(Capital Market, Gold Market, Money Market
   
(B) Match the correct Pairs:                                                                                                           5 Marks
Group A
Group B
1.       Capital structure

2.       Public Deposit

3.       Transfer of Shares

4.       Fungibility

5.       Final Dividend

1.       Voluntary Act.
2.       Operation of Law.
3.       Ratio of different Securities in Capital.
4.       Investment in current assets.
5.       Maximum 36 months.
6.       Maximum 48 months.
7.       Shares do not have distinctive number.
8.       Shares do have distinctive number.
9.       Dividend declared at the AGM.
10.   Dividend declared at the statutory meeting.

(C) Write a word or a phrase or a term which can substitute each of the following statements:                           5 Marks
1.       Convertible debentures can be converted into equity shares.
2.       Unless the shares are dematerialized they cannot be traded in depository mode.
3.       Dividend can be paid out of capital.
4.       The proper aim of financial management is wealth maximization.
5.       Depositor's approval is must for renewal of deposit.

Q.2 Distinguish Between:     (Any three)           15 Marks

3.       DividendV/S Interest.

Q.3Write short notes:    (Any three)    15 Marks

4.       Ploughing back of profit.

Q.4 State with Reasons whether the following statements are True or False: (Any three)                                              15 Marks
1.       No company with net owned funds of less than 5 crore shall invite deposits.                        
2.       Maximization of profits is real and complete motive.
3.       A shareholder can increase the percentage of final dividend recommended by the directors.
4.       DP is the representative of the depository.
5.       A company can accept deposits payable on demand.

Q.5 Answer the Following:  (Any two)  10 Marks

Or

         What are the procedures for conversion of debentures into shares?



PAPER TWO

MARKS : 80      TIME : - 3 HRS.

Q.1 (A) Select the correct answer form the possible options given below and rewrite the statements:                5 Marks
1.      Big retail stores require large amount of __________capital. (Fixed, Working, Loan)
2.      Preference shares carry dividend at _________ rate. (Fixed, fluctuating, Lower)
3.      Transfer of shares by operation of law is called _________ (Issue of shares, Allotment of shares, Transmission of shares)
4.      A company must give receipt to the depositor within ____________of its acceptance. (1 weeks, 4 weeks, 8weeks)
5.      Every company is required to invest__ % of its total value of deposits repayable in the next accounting year in liquid assets. ( 10, 15, 20)
   
(B) Match the correct Pairs:                                                                                                           5 Marks
Group A
Group B
1.       Fixed Capital
2.       Debenture Holder
3.       Under Subscription
4.       Depository in India
5.       Interim Dividend

1.       Less application for shares than expected.
2.       Investment in fixed assets.
3.       Investment in current assets.
4.       Owner of the company.
5.        Creditor of the company.
6.       More application for shares than expected.
7.       NSDL.
8.       SEBI.
9.       Declared at AGM.
10.   Declared between two AGM.

(C) Write a word or a phrase or a term which can substitute each of the following statements:                           5 Marks
1.       Board of directors has power to issue debentures.
2.       Trading on equity is double edged sword.
3.       Shares in physical form cannot be converted into electronic form.
4.       Renewal of deposit means acceptance of deposits.
5.       Dividend can be paid on advance amount of calls received.

Q.2 Distinguish Between: (Any three)  15 Marks

3.       DividendV/S Interest.

Q.3Write short notes:  (Any three)    15 Marks

2.       Features of Shares.

Q.4 State with Reasons whether the following statements are True or False: (Any three)                                              15 Marks
1.       No company with net owned funds of less than 5 crore shall invite deposits.                        
2.       Maximization of profits is real and complete motive.
3.       A shareholder can increase the percentage of final dividend recommended by the directors.
4.       DP is the representative of the depository.
5.       A company can accept deposits payable on demand.

Q.5 Answer the Following:     (Any two)  10 Marks

1.       Bonus shares.
2.       Bombay stock exchange.
4.       Trade credit. 

Or

         What are the procedures for ascertainment of dividend?


PAPER THREE

MARKS : 80      TIME : - 3 HRS.

Q.1 (A) Select the correct answer form the possible options given below and rewrite the statements:                5 Marks
1.      The market which provides short term fund is ________ (Capital Market, Gold Market, Money Market)
2. The repurchase rate which is also known as the official bank rate is ______ rate. (Repo, Credit, Interest)
3. The market which is also known as the government securities market is _________ market. (Primary, Secondary, Gilt edged)
4. The debt instruments which are issued by corporate house to raise funds from the money market is ________ (Certificate of deposit, Preference shares, Commercial paper)
5. A market where existing securities are resold or traded is called ______ market. (Commodity, Secondary, Primary)
   
(B) Match the correct Pairs:                                                                                                           5 Marks
Group A
Group B
1.       Treasury bill
2. Commercial bill
3. New Issue
4. Stock Exchange
5. Financial Market

a. Primary market
b. Long term credit
c. Mobilization of funds
d. Promissory note
e. Short term credit
f. Secondary Market
g. Central government
h. Deals only with brokers
i. New banking institutions. 
j. Mutual fund. 

(C) Write a word or a phrase or a term which can substitute each of the following statements:                           5 Marks
1.       Dividend declared by company at its annual general meeting.
2.       A letter informing the applicant that the shares have not been allotted to him.
3.       A creditor of the company.
4.       A market for borrowing and lending long term capital required by business enterprise.
5.       The oldest stock exchange in Asia.

Q.2 Distinguish Between:   (Any three)          15 Marks


Q.3Write short notes:    (Any three)        15 Marks


Q.4 State with Reasons whether the following statements are True or False: (Any three)         15 Marks
1.       No company with net owned funds of less than 5 crore shall invite deposits.                        
2.       Maximization of profits is real and complete motive.
3.       A shareholder can increase the percentage of final dividend recommended by the directors.
4.       DP is the representative of the depository.
5.       A company can accept deposits payable on demand.

Q.5 Answer the Following:      (Any two)     10 Marks

3.       Types of Debentures.
5.       Private placement

Or