S.P. July 2018 Secretarial practice Board Paper with Solution.

S.P. July 2018 Secretarial Practice Board paper with Solution.

1. (A) Select the correct answer from the possible choices given below and rewrite the statements: [5]

(1) Issue of share warrant requires prior approval of the ___________

(a) State Government (b) Local Body (c) Central Government

(2) A company can accept deposits from the existing shareholders and debenture holders upto __________ of the total paid-up capital and free reserves.

(a) 10% (b) 20 % (c) 25 %

(3) A market where existing securities are resold or traded in called ________ market.

(a) Commodity (b) secondary (c) primary

(4) The _______ concerns can acquire funds from various sources.

(a) newly established (b) small trading (c) well established.

(5) Final dividend is declared at ____________ meeting.

(a) extraordinary general (b) statutory (c) annual general.

(B) Match the pairs [5]

Group A	Group B
(a) Private Placement	(1) Recurring deposit
(b) N.S.D.L.	(2) Dividend
(c) Overdraft facility	(3) Evidence of deposit.
(d) Deposit receipt	(4) Interest
(e) Returns on share	(5) Depository out of India.
	(6) A public company collecting capital privately.
	(7) Depository in India
	(8) Evidence of ownership
	(9) A private Company Collecting capital privately.
	(10) Current account

(C) Write a word or a term or a phrase which can substitute each of the following statements:

1. The place where buying and selling of securities takes place.

Ans. Stock Exchange.

2. The difference between current assets and current liabilities.

Ans. Working Capital.

3. The reserve created for the protection of interest of debenture holders.

Ans. Debenture Redemption Reserve

4. The latin word from which the word 'dividend' is derived.

Ans.  Dividentum

5. A definite promise in writing from a buyer for paying the amount on a specific Date.

Ans. Promissory note

2. Distinguish between the following (any three) 15

1. Final dividend and Interim dividend.

2. Money Market and Capital Market.

3. Shareholder and Debenture Holder.

4. Share Certificate and Share Warrant.

5. Primary market and Secondary Market.

3. Write Short Notes on (any three) 15

1. Statutory conditions of valid allotment of shares.

2. External factors influencing capital structure.

3. Retained profits.

4. Legal provisions regarding declaration of dividend.

5. Procedure for conversion of debentures.

4. State, with reason, whether the following statements are True or False. (any three) 15

1. Share transfer in depository made is fast and economical.

2. Issue of bonus shares is compulsory.

3. Financial management is essential for all types of organization.

4. A public company can receive deposits from the public to any extent.

5. Preference shareholders have normal voting rights.

 

5. Attempt the following: (Any Two) 10

1. What is transmission of shares? State its reasons.

2. Draft a lodgement notice to a transferor.

3. Draft a letter to a debenture holder informing him about redemption of debenture.

4. Draft a letter to a depositor informing him about payment of interest.

6. Answer the following: (Any one) 10

1. Define 'debenture' Explain types of debentures.

OR.

Write a letter to a shareholder regarding issue of bonus shares.