2A. (i) Sanjay, a Chartered Accountant, is the financial controller of Sonik Industries (Pvt.) Ltd.

for the last five years. The company now wants to appoint him as the statutory auditor

of the company. Examining the provisions of the Companies Act, 2013, advise whether

the company can appoint Sanjay as its statutory auditor.

(ii) Board of directors of Ash Ltd. having its registered office at New Delhi decides to hold

its next meeting at New York, USA since all the directors of the company are going

to attend a sales exhibition to be held at New York. Examining the provisions of the

Companies Act, 2013, advise the Board about the validity of its decision to hold the

Board meeting at New York.

(iii) Prism Ltd. has accepted -

10 lakh as advance towards the supply of goods to certain

parties. As per the agreement, the company will supply the goods after two years from

the date of deposit. Later on, internal auditors qualified their report on the ground that

the company has violated the provisions of the Companies Act, 2013. Directors explained

that this is required to complete the order. Examining the relevant provisions of the

Companies Act, 2013 state whether the explanation given by the directors is justified.

(iv) Virat, a person of 21 years of age is pursuing MBA (Finance) course at a reputed

recognised business school. He is not a shareholder of Grow (Pvt.) Ltd. He wishes

to inspect the register of investments in securities not held in company's name and annual

return of Grow (Pvt.) Ltd. He also wants to take copies thereof. Examining the relevant

provisions of the Companies Act, 2013, advise Virat whether he would be successful

in this regard.

(4 marks each)

Attempt all parts of either Q.No. 3 or Q.No. 3A

3. (a) Prudent General Insurance Company Ltd. is engaged in the general insurance business.

The company is not listed in any stock exchange in India but is a subsidiary of Reliable

General Insurance Company Ltd., listed at Bombay Stock Exchange. The turnover of

Prudent General Insurance Company Ltd. is -

330 crore. Examining the provisions of

the Companies Act, 2013, state whether the company is required to file XBRL enabled

balance sheet.

(4 marks)

(b) Sweet (Pvt.) Ltd. has committed a default which is in violation of the provisions of

the Companies Act, 2013. No specific penalty or punishment is provided in the Act

for the said default. Decide the quantum of punishment for contravention where no

specific penalty or punishment is provided under the Companies Act, 2013.