CWA/ICWA Inter :: Business Laws and Communication Skills : December 2005

I-7(BLC)
Revised Syllabus

Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
Question No. 1(a) and 1(b) are compulsory and attempt any five from
the rest in section I and any two from section II.
Section I
( Business Laws )
Marks
1. (a) Comment on the following statements:
(i)Passing of risk is deendent on delivery of goods.
(ii)Every trade practice in restraint of trade is not necessarily a restrictive trade practice.
(iii)A Company has a seperate legal existance of its own.
(iv)Lay off and retrenchment connote the same meaning.
(v)A stranger to a contract cannot sue upon it.
(vi)Depositary System means keeping of ownership records in electronic form.
(vii)No Return of Allotment is required to be filed with regard to the re-issue of foreited shares.
(viii)A company filling a shelf-prospectus is not required to file a prospectus.
(ix)Gratuity can be attached by an order of the court.
 2x9=18
(b) Distinguish between liquidated damages and penalty. 4
2. (a) Distinguish between liquidation and penalty. 5
(b)

What happens if the resolution for re-appointment of a director is not passed at the Annual General Meeting?

 3
(c) State the procedure for declaration and payment of final dividend. 8
3. (a) Explain the principle of 'polluter pays', in relation to the environment protection laws. 4
(b) Explain the provisions of law relating to political donations. 4
(c) What is a qualified rreport of an auditor? 3
(d) Explain the provisions rerlating to postal ballot. 5
4. (a)

In spite of having adequate profits in a particular year and also sufficient General Reserve made out of profits of earlier years, the company wants to declare dividend out of General Reserve. Advise the Board.

 5
(b) Explain briefly dissolution of partnership firms. 6
(c) Can a minor be liable for payment of supplies of necessaries to him? 3
(d)

Can an act done by a director become invalid if afterwards any irregularity is detected in his appointment?

 5
5. (a) List out the statutory books required to be maitained by a company. 5
(b)

X and Y are joint-holders of five hundred shares in ABC Ltd. for the General Meeting of the Company,X whose name stands first in the order of names executes a proxy authorising M to attend the meeting. Is the proxy valid? Give reasons.

 3
(c)

Distinguish between ordinary business, special business and special notice.

 5
(d)

The Annual Gneral Meeting of Messy Ltd. could not be held on time due to delay in finalisation of accounts.Advise the company.

 5
Please turn over

( 2 )

I-7(BLC)
Revised syllabus		 Marks
6. Write explanatory notes on any four:
(a)Environmental audit;
(b)Accounting Standard;
(c)Acceptence for Honour;
(d)Implied Authority of a partner;
(e)Re-sale price Maitenance;
(f)Remedies avilable under the Consumer protection Act.
 4x4=16
 
Section II
(Communication Skills)
 
7. (a) Draft Directors' Responsibility Statement which forms part of the Directors Report. 8
(b)

Draft an auditors certificate on compliance with the conditions of corporate governance under clause 49 of the Listing Agreement.

 7
8. (a)

XYZ Ltd. are unable to deliver the goods to ABC Ltd. on the scheduled date of delivery. Draft a letter on behalf of XYZ Ltd. seeking extension of time by a month.

 8
(b)

Draft a suitable letter to invite one of your customers to attend a special sale of ladies silk dresses on 1 st October, 2005 to know in advance about it before it is put on sale to the general public.

 7
9. (a)

A deposit holder in your company report that he has lost his fixed deposit receipt. The fixed deposit has matured already. Write a note to the Managing Director on the formalities to be followed before settlement of a claim from the deposit holder asking for the maturity amount.

 8
(b)

Write to your supplier, who has supplied goods of inferior quality which do not also coorespond to the sample approved by you.

 7
10. (a)

Draft a market survey report for submissin before the Managing Director regarding opening of retail stores in the eastern parts of India, specially in West Bengal, Bihar and Assam.

 8
(b)

Draft a notice of suspension to an employee for serious derelication of duty causting massive loss to the company.

 7

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