12th HSC Board : Secretarial Practice: Answer in One Sentence (Q.1 (H): 1 Mark each: Total 5 Marks)

12th HSC Board 

Secretarial Practice: 

Answer in One Sentence

(Q. 1 (H): 1 Mark each: Total 5 Marks)

Course: HSC

Subject : Secretarial Practice 

University : 12th HSC Maharashtra State Board 

Introduction

This article provides the HSC Secretarial Practice question paper for the 12th HSC Maharashtra State Board examination along with detailed solutions. The solutions are explained step-by-step to help students understand the method used to solve each problem and prepare for their university examination.

Chapter 1: Introduction to Corporate Finance

(1) Define Corporate Finance.

Ans. 

Corporate finance implies raising finance, financing activities of the corporation, capital structuring and making investment decisions.

(2) Define Capital Structure.

Ans. 

Capital structure refers to the proportion of different sour of funds raised in desired proportion by a firm for long-term finance.

(3) What is Fixed Capital?

Ans. 

The portion of a total capital which is invested in f assets such as land, building, equipment, plant, machinery, etc. called fixed capital.

(4) Define Working Capital.

Ans. 

The portion of a total capital which is invested in the current assets such as cash, inventories, account receivables, etc. is called working capital.

(5) What is Production Cycle?

Ans. 

The process of converting raw materials into finished products is called production cycle.

Chapter 2: Sources of Corporate Finance

(1) What is a Share?

Ans. 

The total capital of a company when divided into large numb of small parts of equal face value, each such part is called a share 80

(2) What are Equity Shares?

Ans. 

Equity Shares are those shares which have no special preferential rights as to payment of dividend whenever it is declared and paid or repayment of capital in the event of liquidation of the company 

(3) What are Preference Shares?

Ans. 

Preference Shares are those shares which carry preferential preferential right as to the return of capital in the event of winding-up right as to payment of dividend during the lifetime of a company and of the company.

(4) What are Cumulative Preference Shares?

Ans. 

The type of preference shares on which dividend if not paid goes on accumulating until it is fully paid is called Cumulative Preference Shares.

(5) What are Convertible Debentures?

Ans. 

The convertible debentures are those debentures in which the company gives right to the debenture holders to convert their debentures into equity shares after a specific period of time.

(6) What is Debenture?

Ans. 

Debentures mean and include debenture stock, bonds and any other instrument of the company evidencing a debt, whether constituting a charge on the assets of the company or not.

(7) What is a Bond?

Ans. 

A bond is an interest-bearing instrument issued by the government, semi-government institution or the public corporations to acknowledge the debts borrowed and promising thereby to pay the holder a specific amount at a specified date.

(8) What are Retained Earnings?

Ans. 

The process of accumulating corporate profit and their utilization in the business is called Retained Earnings.

Chapter 3: Issue of Shares

(1) What is Public Issue?

Ans. 

Public Issue means IPO (Initial Public Offer) where shares are offered to general public to raise the capital.

(2) Name the method under which the issue price of shares is fixed through a bidding process.

Ans. 

The method under which the issue price of shares is fixed through a bidding process is called Book Building,

(3) What is meant by Private Placement?

Ans. 

When company offers its securities not through a public offering, but rather through a private offering, mostly to friends and family, accredited investors, and institutional investors, it is called offering, Private Placement.

(4) What is the minimum application money to be collected by company as per the Companies Act?

Ans. 

Application money to be collected by company should be minimum 25% of the nominal value of shares.

(5) What is a Share Certificate?

Ans. 

Share Certificate is a registered document of title of shares.

(6) What is the time limit for filing Return of Allotment with the Registrar on allotment of shares?

Ans. 

Return of Allotment must be filed by the company with the Registrar of Companies within 30 days of the date of allotment.

(7) Name the parties involved in transfer of shares.

Ans. 

Transferor and transferee are the two parties involved in transfer of shares.

(8) When does transmission of shares take place?

Ans. 

Transmission of shares takes place in case of death. insolvency or insanity of a shareholder.

(9) When can a company forfeit shares?

Ans. 

Company can forfeit the shares if call money on shares are not paid by shareholder within the stipulated period.

Chapter 4: Issue of Debentures

(1) Who are debentureholders?

Ans. 

Debentureholders are the creditors of the company.

(2) What is the minimum subscription that a company ma collect for an issue of debentures of ₹100 crores?

Ans. 

Minimum subscription must be 75% that a company must collect for an issue of debentures of ₹100 crores.

(3) Whom does the company appoint to protect the interest of debentureholders?

Ans. 

Company appoints Debenture Trustees to protect the interest of debentureholders.

(4) Name the document which is an agreement between the Debenture Trustee and company.

Ans. 

An agreement between the Debenture Trustee and company is called Debenture Trust Deed.

(5) Within what period should secured debentures be redeemed?

Ans. 

Secured debentures should be redeemed within 10 years from the date of its issue.

Chapter 5: Deposits

(1) Within what period should a company issue Deposit Receipt?

Ans. 

Company has to issue Deposit Receipts to the depositors, within 21 days from date of receipt of money or realisation of cheque.

(2) What is the maximum deposit the government company can collect?

Ans. 

Government companies can accept deposits from public not exceeding 35% of its paid-up share capital and free reserves.

(3) Which companies can accept deposits from public?

Ans. 

Eligible public companies and government companies can accept deposits from public.

(4) What is Deposit Repayment Reserve Account?

Every company has to open Deposit Repayment Reserve Account in a scheduled bank to deposit an amount equal to 15% of the amount of deposits maturing during the current year and following financial year, which can be used only for repaying deposit.

(5) When should a company file Return of Deposit?

Ans. 

A company has to file Return of Deposit on or before 30th June of every year.

(6) Who are Deposit Trustees?

Ans. 

Deposit Trustees protect the interest of the depositors, in case a company defaults in repaying the depositors. 

(7) What is Deposit Trust Deed?

Ans. 

An agreement between a company and deposit trustees called as Deposit Trust Deed.

(8) What is Register of Deposit?

Ans. 

A company has to maintain a separate Register for Deposits accepted or renewed at its registered office, which contains the details of the deposits along with the details of the depositors.

Chapter 6: Correspondence with Members

(1) What is meant by payment of dividend electronically?

Ans. 

Payment of dividend electronically means it is direct transferred into the account of shareholders through electronic ma like ECS or NEFT.

(2) What is Dividend Warrant?

Ans. 

Dividend Warrant is an instrument of payment of divide issued by the company to its registered shareholders after declaration of dividend at the Annual General Meeting of the comp

(3) What is Capitalisation of Reserve?

Ans. 

Capitalisation of Reserve means the utilisation of profit w was kept as reserve fund that can be used to create new shares that company gives to its equity shareholders.

Chapter 7: Correspondence with Debentureholders

(1) What is the income of debentureholders?

Ans. 

Debentureholders receive interest as an income on the investment in debentures.

(2) Which certificate will be issued after allotment debentures?

Ans. 

Debenture Certificate will be issued after allotment debentures.

(3) Which form is enclosed along with the letter of redemption of debentures?

Ans. 

Debenture Redemption Form is enclosed with the letter redemption of debentures.

Chapter 8: Correspondence with Depositors 

(1) Who is a Depositor?

Ans. 

A Depositor is a creditor of a company who gets interest on his deposits regularly at fixed rate.

(2) What is Renewal of Deposit?

Ans. 

The deposit which is already due but not to be repaid but to be accepted again for a further period is called Renewal of Deposit. 

(3) Which document is enclosed along with the Renewal Letter?

Ans. 

Fixed Deposit Receipt of the renewed deposit is enclosed with the Renewal Letter.

(4) What is Interest Warrant?

Ans. 

A cheque given by a company for the payment of interest on deposit is called Interest Warrant.

Chapter 9: Depository System

(1) What is Depository System?

Ans. 

An organisation or computerised system which holds and transfers the ownership of the shares and other securities in electronic form on behalf of its clients (investors) is called Depository System.

(2) Name the depositories in India.

Ans. 

There are two depositories in India viz.: (1) The National Security Depository Limited (NSDL) and (2) The Central Depository Services Limited (CDSL).

(3) What is a Depository Participant (DP)?

Ans. 

Financial intermediary which provides depository services. Le. financial services relating to holding, maintaining and dealing in securities in electronic form is called Depository Participant (DP).

(4) What is Dematerialisation?

Ans. 

The process in which the share certificates and other securities in the physical form are transformed (converted) into an electronic mode is called Dematerialisation.

(5) What is Rematerialisation?

Ans. 

Rematerialisation refers to a process in which the shares and other securities from electronic mode are converted into the physical form.

(6) Give examples of action termed as Corporate Action.

Ans. 

Payment of dividend on demat shares, issue of bonus share, offering of rights shares, early redemption of debentures, mergers and acquisition, etc. are the examples of action termed as Corporate  Action.

(7) What is ISIN?

Ans. 

International Securities Identification Number (ISIN) identification number given to a security of an issuer company at time of admitting such security in the depository system.

Chapter 10: Dividend and Interest

(1) What is Dividend?

Ans. 

Dividend is a part of distributable profits of the company which the shareholder is entitled to receive it when it is forma declared by the company.

(2) What is Final Dividend?

Ans. 

A dividend which is paid or proposed to be paid after conclusion of the financial year and the presentation of final accounts is called Final Dividend.

(3) What is Interim Dividend?

Ans. 

A dividend which is declared by the Board of Directors between two consecutive Annual General Meetings of the company and paid in the middle of the accounting year is called Interim Dividend.

(4) At which meeting, interim dividend is decided and declared?

Ans. 

Interim dividend is decided and declared at the meeting Board of Directors (Board Meeting).

(5) State the time within which unpaid dividend is to transferred to unpaid dividend Account.

Ans. 

Unpaid dividend is to be transferred to unpaid dividend account within 7 days, after the expiry of 30 days, from the date declaration of dividend, i.e. transfer is to be effected within 37 days from the declaration of dividend.

Chapter 11: Financial Market

(1) What is Financial Market?

Ans. 

A market where financial assets, Le. financial instruments are exchanged or traded is called Financial Market.

(2) What is New Issue Market?

Ans. 

New Issue Market refers to a market where newly established companies sell their shares, debentures, etc. for the first time to raise fresh capital.

(3) What is Call Money Market?

Ans. 

Money Market where funds are lent or borrowed for very short period of one day is called Call Money Market.

(4) What is Certificate of Deposits?

Ans. 

Certificate of Deposits refer to a receipt of funds deposited in a bank for a fixed period at a specified rate of interest.

(5) What is Trade Bill?

Ans. 

A negotiable instrument or bill drawn by a seller on the buyer for the value of goods sold under credit sale is called a Trade Bill.

Chapter 12: Stock Exchange

(1) What is Stock Exchange?

Ans. 

A specific place where various types of securities such as shares, debentures, government securities, bonds, etc. are bought and sold is called Stock Exchange.

(2) What is Trading Ring?

Ans. 

The specific floor of stock exchange where trading or auction of shares takes place is called a Trading Ring.

(3) What is Sensex?

Ans. 

The index of the Bombay Stock Exchange (BSE) which represents the increase or decrease in prices of stocks of selected group of companies is called Sensex.

(4) What is Crash?

Ans. 

When the Sensex or Nifty moves in downward direction, it Is called Crash.

(5) What is Rally?

Ans. 

When the Sensex or Nifty moves in upward direction over: period of 14 to 20 trading sessions, it is called Rally.

(6) Who is Broker?

Ans. 

A member of a stock exchange, who is licensed by stock exchange to buy or sell shares on his client's behalf is called Broker.

(7) Who is Bull?

Ans. 

A speculator who expects the price of a share to rise in the near future and buys the shares with the hope of selling them at the higher prices to earn the profit is called Bull (Tejiwala).

(8) Who is Bear?

Ans. 

A speculator who expects the price of share to fall in future and sells his securities at the prevailing prices to avoid loss is called Bear (Mandiwala).

(9) Who is Lame Duck?

Ans. 

A bear broker whose expectations have gone wrong and made a loss in his dealings is called Lame Duck.

(10) Who is Jobber?

Ans. 

A dealer in stock exchange who carries on trading d securities in his own name is called Jobber.

12th HSC Board 

Secretarial Practice: 

CORRECT UNDERLINED WORD AND REWRITE

(Q. 1 (I): 1 Mark each: Total 5 Marks)

Q. Correct the underlined word and rewrite the following sentences:     (1 mark each)

Chapter 1: Introduction to Corporate Finance

(1) Share is an acknowledgement of loan raised by company.

(2) Finance is needed to pay dividend to debentureholders.

(3) Equity shares carry dividend at fixed rate.

(4) When there is recession in economy, sales will increase.

Ans.

(1) Debenture is an acknowledgement of loan raised by company.

(2) Finance is needed to pay interest to debentureholders.

(3) Preference shares carry dividend at fixed rate.

(4) When there is boom in economy, sales will increase.

Chapter 2: Sources of Corporate Finance

(1) Owned capital is temporary capital.    (March '24)

(2) Debentureholder is owner of the company.

(3) Bond is a source of short-term finance.        (Sept. '21)

(4) Depository Receipt traded in USA is called Global Depository Receipt.    (March '25)

Ans. 

(1) permanent capital 

(2) Creditor 

(3) long 

(4) American Depository.

Chapter 3: Issue of Shares

(1) Issued capital is the maximum capital which a company raise by issuing shares.

(2) FPO refers to offering of shares to the public for the first time. (March '24-'25)

(3) Letter of Allotment is sent to applicants when no shares an allotted to them.

(4) Duplicate share certificate must be issued within one month from date of application.

(5) Company enters into an underwriting agreement with the shareholders.

Ans. 

(1) Authorised capital

(2) IPO

(3) Letter of Regret

(4) three months

(5) underwriters.

Chapter 4: Issue of Debentures

(1) Return on investment on debentures is dividend.

(2) A company issuing irredeemable debentures must create a charge on assets of the company.

(3) To rate its debentures a company appoints underwriters.    (March 22)

(4) Debenture Trustees redress the grievances of shareholders.

Ans. 

(1) interest

(2) secured

(3) credit rating agency

(4) debentureholders.

Chapter 5: Deposits

(1) Government Company can accept deposit from members.

(2) Company issues advertisement to invite its members for subscribing to its deposits.

(3) Minimum tenure of deposit is 36 months.

(4) Deposit Receipt is issued within seven days from date of receipt of deposits.

(5) Charge on assets is created when company issues unsecured deposit.

(6) Register of deposits is to be filed with the Registrar of Companies on or before 30th June every year.

Ans.

(1) public

(2) circular

(3) 6

(4) twenty one days

(5) secured 

(6) Return of deposits.

Chapter 6: Correspondence with Members

(1) The person who purchases shares of the company is called Depositor. 

(2) A company must issue the Share Certificate within three months of allotment of shares.

(3) Payment of dividend must be made within 21 days of its declaration.

(4) Dividend is recommended by shareholders.    (March '24)

(5) Bonus shares are issued as a free gift to the Preference shareholders.    (March '25)

Ans. 

(1) Shareholder

(2) two

(3) 30

(4) Board of Directors

(5) Existing Equity.

Chapter 7: Correspondence with Debentureholders

(1) The person who purchases debentures of a company is called shareholder.

(2) A Share Certificate must be issued after allotment of debentures.

(3) A company must issue Debenture Certificate within 8 months of allotment of debentures.

(4) A Demat Request Form is sent along with the letter of Redemption of Debentures.

(5) A Debenture Redemption Reserve Fund is created by the company for the redemption of shares.

Ans.

(1) debentureholder

(2) Debenture Certificate

(3) 6

(4) Debenture Redemption Form

(5) debentures.

Chapter 8: Correspondence with Depositors

(1) Deposits are the internal source of financing.

(2) Deposit is a long-term source of capital.        (March '24)

(3) Depositors are owners of the company.        (March '22)

Ans.

(1) external

(2) short

(3) creditors.

Chapter 9: Depository System

(1) Banking system leads to a scrip less capital market.

(2) Storage of Certificates is not required in physical mode of holding.

(3) Electronic mode of holding securities is risky.

(4) Securities are fungible in Physical mode.        (Sept. 21)

(5) India has a single depository system.

(6) Allotment and transfer of securities is time-consuming electronic mode.

(7) Depository Participant in India has to register under the Partnership Act.

(8) Demat accounts are opened and maintained by the Depository.

(9) ISIN is a code given to the company.

(10) ISIN of Indian Government securities is issued by NSDL.

Ans. 

(1) Depository 

(2) electronic

(3) Physical

(4) Electronic

(5) multi

(6) Physical mode

(7) SEBI Act

(8) Depository Participant (DP) 

(9) securities 

(10) RBI.

Chapter 10: Dividend and Interest

(1) Dividend is paid to creditors.

(2) Preference shareholders get dividend from residual profits. (Sept. '21; March 22)

(3) Preference shareholders are given the last priority in payment of dividend.

(4) Dividend must be paid within 60 days of its declaration.

(5) Special Resolution must be passed to declare Final Dividend.    (March '25)

(6) Dividend is an obligation to be paid by a company every year. (March '25)

(7) Dividend is payable every year irrespective of profits made by company.

Ans.

(1) registered shareholders

(2) Equity

(3) Equity

(4) 30 days

(5) Ordinary Resolution

(6) Interest

(7) Interest.

Chapter 11: Financial Market

(1) Financial market can be classified as capital market and call money market.

(2) In Money market, the instruments traded have maturity period of more than one year. (Sept. "21)

(3) In primary market, already existing securities are traded. (Sept. '21)

(4) Companies sell fresh shares for the first time to the public in secondary market. (March '22)

Ans.

(1) money 

(2) Capital

(3) Secondary

(4) primary market.

Chapter 12: Stock Exchange

(1) A stock market is an important constituent of money market. (March '24-'25)

(2) A Broker cannot directly deal with investors.

(3) A Bull buys new issues of securities from primary market.

(4) One of the functions of SEBI is to protect the interest of issuers of securities in the securities market.

Ans.

(1) capital

(2) Jobber

(3) Stag

(4) investors.

12th HSC Board 

Secretarial Practice: 

CORRECT UNDERLINED WORD AND REWRITE

(Q. 1 (J): 1 Mark each: Total 5 Marks)

Chapter 3: Issue of Shares

(1) (a) Return of allotment

(b) Application form

(c) Minimum subscription

Ans. 

(b) Application form

(c) Minimum subscription

(a) Return of allotment.

(2) (a) Share certificate

(b) Allotment letter

(c) Application form

Ans. 

(c) Application form

(b) Allotment letter

(a) Share certificate.

(3) (a) Forfeiture of shares

(b) Calls on shares

(c) Allotment of shares

Ans. 

(c) Allotment of shares

(a) Forfeiture of shares.

(b) Calls on shares

Chapter 4: Issue of Debentures

(4) (a) Hold Board Meeting for allotment

(b) Issue debenture certificate

(c) Receive application with money

Ans. 

(c) Receive application with money 

(a) Hold Board Meeting for allotment 

(b) Issue debenture certificate.

(5) (a) Issue debenture certificate

(b) Issue prospectus

(c) Open bank Account

Ans. 

(b) Issue prospectus

(c) Open bank account

(a) Issue debenture certificate.

(6) (a) Obtain credit rating.

(b) Entry in register of debenture

(c) Receive application with money

Ans. 

(a) Obtain credit rating 

(c) Receive application with money 

(b) Entry in register of debenture.

Chapter 5: Deposits

(7) (a) File return of deposit

(b) Issue deposit receipt

(c) Issue advertisement

Ans. 

(c) Issue advertisement

(b) Issue deposit receipt

(a) File return of deposit.

(8) (a) Appoint Deposit Trustee

(b) Hold General Meeting

(c) Create charge on assets

Ans. 

(b) Hold General Meeting

(a) Appoint Deposit Trustee

(c) Create charge on assets.

(9) (a) Obtain Credit Rating

(b) Entries in Register of Deposits

(c) Issue Deposit Receipt

Ans. 

(a) Obtain Credit Rating

(c) Issue Deposit Receipt

(b) Entries in Register of Deposits.

Chapter 6: Correspondence with Members

(10) (a) Allotment of shares

(b) Application for shares

(c) Share certificate

Ans. 

(b) Application for shares

(a) Allotment of shares

(c) Share certificate.

(11) (a) Member

(b) Applicant

(c) Bonus shares

Ans.

(b) Applicant

(a) Member

(c) Bonus shares.

Chapter 7: Correspondence with Debentureholders

(12) (a) Board Resolution

(b) Allotment of Debentures

(c) Board Meeting

Ans. 

(c) Board Meeting

(a) Board Resolution

(b) Allotment of Debentures.

(13) (a) Interest Warrant

(b) Allotment of Debentures

(c) Board Meeting

Ans. 

(c) Board Meeting

(b) Allotment of Debentures

(a) Interest Warrant.

Chapter 8: Correspondence with Depositors

(14) (a) Renewal of Deposit

(b) Acceptance of Deposits

(c) Deposit Receipt

Ans. 

(b) Acceptance of Deposits

(c) Deposit Receipt

(a) Renewal of Deposit.

(15) (a) Payment of Interest

(b) Deposit Receipt

(c) Acceptance of Deposits

Ans. 

(c) Acceptance of Deposits

(b) Deposit Receipt

(a) Payment of Interest.

Chapter 9: Depository System

(16) (a) Gets Statement of Accounts

(b) Open Demat Account

(c) Submit DRF

Ans. 

(b) Open Demat Account

(c) Submit DRF

(a) Gets Statement of Accounts.

(17) (a) Investor (BO) submits application for securities to issuer company.

(b) Depository intimates the DP about crediting BO's Account.

(c) Issuer company gives details of allotment to Depository.

Ans. 

(a) Investor (BO) submits application for securities to issuer company 

(c) Issuer company gives details of allotment to depository 

(b) Depository intimates the DP about crediting BO's account.

Chapter 10: Dividend and Interest

18) (a) Recommendation of dividend

(b) Checking sufficiency of profits

(c) Board Meeting

Ans. 

(b) Checking sufficiency of profits 

(c) Board Meeting Recommendation of dividend.

(a) Recommendation of dividend

19) (a) Transfer to Dividend Account

(b) Transfer to IEPF

(c) Transfer to Unpaid Dividend Account

Ans. 

(a) Transfer to Dividend Account 

(c) Transfer to Unpaid dividend Account 

(b) Transfer to IEPF

(20) (a) Closure of register of members

(b) Intimate Stock Exchange of Board Meeting

(c) Intimate Stock Exchange of declaration of dividend

Ans. 

(b) Intimate Stock Exchange of Board Meeting

(c) Intimate Stock Exchange of declaration of dividend 

(a) Closure of register of members.

(21) (a) Decision on rate of dividend

(b) Transfer to IEPF

(c) Payment of dividend

Ans. 

(a) Decision on rate of dividend 

(c) Payment of dividend

(b) Transfer to IEPF.

(22) (a) Payment of interim dividend

(b) Board Meeting deciding and declaring interim dividend

(c) Authorisation of Articles of Association

Ans. 

(c) Authorisation of Articles of Association 

(b) Board Meeting deciding and declaring interim dividend 

(a) Payment of interim dividend.