1. As per section 81, Rights
shares are issued after two years from the formation of a company or the expiry
of one year from the first allotment of shares in the company whichever is
earlier. True
2. Right shares are first offered
to the existing share holders. True
3. Right share are not offered to
the existing equity shareholders if:
a.
The company in general meeting has so decided by
a special resolution
b.
Decided by an ordinary resolution and same has
been approved by the central government
c.
Right shares are offered to existing
shareholders only.
d.
Both a and b.
4. As per SEBI guidelines right
issue should not be kept open for more than 60 days. True
5. Section 81 is not applicable to:
a.
A private company
b.
Conversion of debenture into shares
c.
Option to subscribe for shares in the company attached
to debentures issued or loan raised by the company
d.
All of the above.
6. Which of the following
statement in false:
a.
Bonus issue is made out of free reserves or
securities premium collected in cash only.
b.
Bonus shares can be issued out revaluation
profit.
c.
No bonus issue shall be made within 12 months of
any public or right issue.
d.
Company can issue bonus shares in any ratio.
7. If after bonus issue the
subscribed and paid up capital exceed the authorised share capital, a
resolution shall be passed by the company to icrease its authorised share
capital. True
8. Which of the following Reserves
which are not available for issue of fully paid bonus shares:
a.
Profit and loss account
b.
Dividend equalisation reserve
c.
Capital reserve arising due to revaluation
d.
Capital redemption reserve
9. Bonus shares can be issued at
a premium. True
10. Which of the following
reserves which can be utilised to make partly paid shares into fully paid up:
a.
Securities premium
b.
Capital redemption reserve
c.
Surplus arising from a change in the method of
charging depreciation
d.
Capital reserve from sale of fixed assets in
cash
11. Issue of bonus share must be
provided in the articles of association of the company. True
12. Which of the following statement
is false:
a.
Bonus issue is made in lieu of dividend.
b.
Bonus issue is not made unless the partly paid
shares are made fully paid up
c.
Bonus issue must be implemented within six
months from the date of approval
d.
Bonus is simply capitalisation of free reserves
13. Which of the following is a
free reserve:
a.
Plant revaluation reserve
b.
Development rebate reserve
c.
Investment allowance reserve
d.
Capital reserve collected in cash
14. A ltd is planning to raise
funds by makin right issue of equity shares to finance its expansion. The existing
share capital of the company is one crore. Face value of the shares I Rs. 10
and Market Value is Rs. 40. The company made a right issue of 3 new shares for
every 5 old shares @ Rs. 15. From the information given above calculate:
(a) Theoretical market price
after right issue
a.
30
b.
30.25
c.
30.63
d.
31
(b) Value of Rights
a.
9.11
b.
9.37
c.
9.50
d.
9.67
(c) Percentage increase in share
capital:
a.
40%
b.
50%
c.
60%
d.
70%
(d) Percentage increase in total
funds:
a.
80%
b.
90%
c.
75%
d.
100%
