CA Intermediate — Answer Writing
Intermediate is where ICAI's step marking starts to decide results. Several papers carry a thirty per cent objective section, but the seventy per cent that is written is where the marks are made and lost — and it is marked against published Suggested Answers.
Question No. 1 is compulsory. Answer any four questions from the remaining five questions. Working notes should form part of the answer.
- 1. (a)Alpha Ltd., an unlisted public company, accepted deposits of ₹50 lakh from its members on 1st April without issuing a circular to members. Examine the validity of the acceptance under the Companies Act, 2013 and state the consequences.(5 Marks)
- (b)Explain the provisions relating to the registration of charges and the effect of non-registration.(4 Marks)
- 2. (a)State the circumstances in which a company may issue shares at a discount under the Companies Act, 2013.(6 Marks)
One CA Inter answer, from question to marked report
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Alpha Ltd, an unlisted public company, accepted deposits of Rs 50 lakh from its members on 1 April without issuing a circular to members. Examine the validity of the acceptance under the Companies Act, 2013 and state the consequences.
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A company can accept deposits from its members under the Companies Act.? However certain conditions have to be followed. Here the company did not issue a circular to the members before accepting the deposit, so it is a contravention. The company will have to repay the deposit and penalty can be imposed on the company and its officers. Acceptance of deposits from members is governed by the Act and the rules made under it, and a company which wishes to accept them has to satisfy every condition laid down there.
- Section 73(2) and the full list of conditions, which is the skeleton of this answer
- Filing the circular with the Registrar before issue
- Section 76A penalty on the company and on every officer in default
Model answer for this question
Provision: Section 73(2) permits a company to accept deposits from its members subject to conditions — a resolution in general meeting, issue of a circular to members with the prescribed particulars, filing the circular with the Registrar before issue, maintenance of a deposit repayment reserve, certification of no default, and security where secured deposits are offered. Application: Alpha Ltd accepted deposits without issuing the circular, breaching a mandatory condition, so the acceptance is in contravention. Consequence: repayment of the deposit with interest, and penalty on the company and on every officer in default under Section 76A.
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The scoring behind those pen marks: every expected step, what it was worth, what you earned, and a model answer.
- Section 73(2) — a company may accept deposits from members on fulfilling the conditions½/1
The proposition is right; the section is not cited.
- Circular to members with the prescribed particulars, and filing with the Registrar½/1
The circular is identified but not the filing requirement that accompanies it.
- Deposit repayment reserve and the other conditions0/1
Not mentioned. The conditions have to be listed before you can say which one was breached.
- Application — acceptance without the circular is a contravention1/1
Correctly applied to the facts.
- Consequence — repayment with interest and penalty under Section 76A½/1
The consequence is stated without the penal section.
CA Inter at a glance
| Conducting body | The Institute of Chartered Accountants of India (ICAI) |
|---|---|
| Mode | Handwritten, with an objective component in several papers |
| Papers | 6 |
| Marking | CA Inter — step marking |
What CA Inter sets
The papers you sit, and what each is worth.
- Marked to the CA Inter scheme
- Model answer, every time
- Handwriting read from a photo
- AI viva on any topic
- Full timed papers
- Every attempt kept in your archive
- WriteA question, answered and marked.
- VivaQuestioned on Section 138 NI Act and more.
- Full paperA timed paper, one scorecard.