Reports & Statements – Practice Test 1

Practice MCQs on statutory reports, financial statements, disclosures, and reporting obligations under company law.

Reports & Statements- Practice Test 1

1 / 50

The chairperson of the audit committee shall be _____ and he shall be present at Annual general meeting to answer shareholder queries

A nominee director

An executive director

An alternate director

An independent director

2 / 50

The audit committee at its discretion shall invite

The statutory auditor

The Head of the finance function

The Head of internal audit

All or any of the above

3 / 50

All directors of the nomination committee remuneration shall be

Nominee directors

Executive directors

Alternate directors

Non-executive directors

4 / 50

No prior approval of the audit committee is required where the Related Party Transactions are

Transactions entered into between a holding company and its wholly owned subsidiary

Transactions entered into between two government comprises

Both A and B are correct

None of the above

5 / 50

The nomination committee shall comprise of

At least 3 directors

At least 1 directors

At least 2 directors

At least 4 directors

6 / 50

All related party transactions shall require prior approval of

The Risk Management Committee

The Audit Committee

The Fraud prevention Committee

The Stake Holders Committee

7 / 50

The statutory auditor of a listed entity shall undertake a limited review of the audit of all the entities companies whose accounts are to be consolidated with the listed entity as per _______ in accordance with guidelines issued by the SEBI on this matter

AS 21

AS 11

AS 16

AS 24

8 / 50

The top 500 and 1000 entities shall be determined on the basis of _____ , as at the end of the immediate previews financial year

Market capitalization

Highest equity share capital

Highest market price of share

Highest reserves

9 / 50

The audit committee shall review, _______ the details of related party transactions entered into by omnibus approvals given

At least on a bi-monthly basis

At least on a quarterly basis

At least on a monthly basis

At least on a half yearly basis

10 / 50

The risk management committee shall meet

At least once in a period of three quarters

At least once in a quarter

At least once in a half year

At least twice in a year

11 / 50

The remuneration committee shall comprise of

At least 3 directors

At least 1 directors

At least 4 directors

At least 2 directors

12 / 50

The audit committee shall meet ______ and not more than one hundred and twenty days shall elapse between two meetings

At least 3 times in a year

At least in a year

At least 4 times in a year

At least 2 times in a year

13 / 50

The listed entity shall maintain ____ containing the basis information about the listed entity

A non-functional website

A website

A functional website

None of the above

14 / 50

The listed entity shall give prior intimation to stock exchange about the meeting of the board of directors in which the proposals

Proposal for voluntary delisting by the listed entity

Financial results

Proposal for buyback of securities

All of the above

15 / 50

The independent directors of the listed entity shall hold _____ without the presence of non-independent directors and members of the management and all the independent directors shall strive to be present at such meeting

At least one meeting in a financial year

One meeting in a financial year

At least two meeting in a financial year

Two meeting in a financial year

16 / 50

The functions of the risk management committee shall be

Monitoring and reviewing of cyber security

Monitoring the risk management plan

Reviewing of the risk management plan

All of the above

17 / 50

The Company Secretary shall act as _____ to the audit committee

The arranger

The secretary

The speaker

The coordinator

18 / 50

In the nomination/remuneration committee ____ of the directors shall be independent directors

At least 20%

At least 50%

At least 10%

At least 40%

19 / 50

The audit committee shall have _____ as members

4 directors

3 directors

Minimum 3 directors

Minimum 4 directors

20 / 50

The listed entity shall update any change in the contain of its website ______ from the date of such change in contain

Within 2 working days

Within 1 day

Within 2 days

Within 1 working days

21 / 50

The time gap between two record dates shall be

At least 10 days

At least 30 days

At least 30 working days

At least 20 days

22 / 50

At least _____ of the members of audit committee shall be independent directors

Two-thirds of the members

Three members

One thirds of the members

None of the above

23 / 50

The omnibus approvals shall be valid for a period _____ and shall require fresh approvals after the expiry of one year

Not exceeding 2 year

Not exceeding half year

Not exceeding 1 year

None of the above

24 / 50

A director shall not be a member ____ across all listed entities in which he is a director

In more than 5 committees

In more than 12 committees

In more than 3 committees

In more than 10 committees

25 / 50

A director shall not act as chairperson of ____ across all listed entities in which he is a director which shall be determined as follows

More than 4 committees

More than 2 committees

More than 5 committees

More than 3 committees

26 / 50

The annual report shall NOT contain

Funds Flow Statement

Director’s Report

Statement on Impact of Audit Qualifications

Management Discussions

27 / 50

The financial results shall be prepared on the basis of

Deferred revenue policy

Accrual accounting policy

Receipt payment policy

None of the above

28 / 50

The chairperson of stakeholders relationship committee shall be

A nominee director

An executive director

An additional

A non-executive director

29 / 50

The majority of members of risk management committee shall consist of

Members of the audit committee

Members of the nomination committee

Members of the board of directors

Members of the remuneration committee

30 / 50

The top 1000 entities by market capitalization, determined as on March 31^st of every general meetings _____ from the date of closing of the financial year

Within a period of 5 months

Within a period of 3 months

Within a period of 6 months

Within a period of 4 months

31 / 50

The nomination remuneration committee shall meet

At least once in three quarter year

At least once in a quarter

At least once in a year

At least once in a half year

32 / 50

The quorum for audit committee meeting shall either be two members or one third of the members of the audit committee, ______ with at least two independent directors

Whichever is greater

Whichever is lesser

33 / 50

At least ____ of the members of audit committee shall be independent directors

Two-thirds of the members

Three members

One thirds of the members

None of the above

34 / 50

The listed entities other than top five hundred listed entities based on market capitalization _____ in their annual reports and on their websites.

Shall mandatorily disclose their dividend distribution policies

May disclose their dividend distribution policies on a voluntary basis

35 / 50

All members of audit committee shall be financially literate and ____ shall have accounting or related financial management expertise

At least 3 members

At least 1 member

At least 2 members

At least 4 members

36 / 50

The Audit Committee shall consist of a ____ with independent directors forming a majority

Maximum of three directors

Minimum of three directors

Three directors

None of the above

37 / 50

Due diligence is the process by which a person or a company collects _____ about the other person/company

Vital Social Information

Vital Personal Information

Vital Financial Information

Vital Business Information

38 / 50

Director’s Responsibility Statement shall state

Directors had prepared the annual accounts on a going concern basis

Applicable Accounting Standards had been followed

Accounting Policies had been consistently followed

All of the above

39 / 50

The quarterly financial results submitted shall be approved by the

Accounts Committee

Board of Directors

Corporate Governance Committee

Audit Committee

40 / 50

Dividend Distribution Policy shall NOT contain

Circumstances under which the shareholders may or may not except dividend

Internal and external factors that shall be considered for declaration of dividend

Policy as to how retained earning shall be utilized

Percentage of dividend to be payable every year

41 / 50

Intimation to stock exchange shall be given about convening of board meeting for the purpose of financial results

At least 4 days in advance

At least 2 days in advance

At least 5 days in advance

At least 3 days in advance

42 / 50

The Lead manager(s) shall submit a final post-issue report along with a due diligence certificate ____ of the date of finalization of basis of allotment

Within 7 days

Within 9 days

Within 3 days

Within 5 days

43 / 50

The financial results submitted to the stoke exchange shall NOT be signed by

The Company Secretary

The Chairperson

The whole Time Director

The Managing Director

44 / 50

Which Schedule of the Companies Act, 2013 deals the CSR Activities

Schedule IV

Schedule VII

Schedule V

Schedule VI

45 / 50

The company and Independent Director shall abide by the provisions specified in

Schedule IV

Schedule I

Schedule III

Schedule II

46 / 50

“Material subsidiary” shall mean a subsidiary, whose income or net worth exceeds _____ of the consolidated income or net worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year

12%

10%

47 / 50

The Annual Report of a listed entity shall NOT contain

Statement on Impact of Audit Qualification

Directors Report

Management Discussion and Analysis Report

Funds Flow Statement

48 / 50

Which of the following company is NOT required to have Vigil Mechanism Policy

Unlisted Public Company who has borrowed from Bank 45 crores rupees

Listed Public Company

Unlisted Public Company who have borrowed from Bank in excess of 50 crores rupees

Unlisted Public Company which accepts deposits from public

49 / 50

The financial results shall be prepared on the basis of

Semi Realisation Accounting Policy

Realisation Accounting Policy

Semi Accrual Accounting Policy

Accrual Accounting Policy

50 / 50

Contribution to which of the funds shall be considered as CSR Activity

Defence Research and development organisation (DRDO)

Indian Council of Medical Research (ICMR)

Dept. of Atomic Energy (DAE)

All of the above

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