As declared by the ICAI, paper was divided into two parts. Part I consist 30 marks MCQs, which is not available to public domain and therefore, it is not possible to analyze and comment anything on it. But it can be nderstood that MCQs should be of good quality and based on application approach. When it was announced by ICAI, majority of students thought that MCQs will be like CPT. From the sample MCQs, it can be inferred that it is in line with MCQs asked in CPA examination.
Part II contains descriptive questions. If I would like to announce my analysis in one line, I would say – “Paper was good and balanced”. But we would like to go in detail and carry out analysis on question wise. Question no. 1(a) is ordinary question testing understanding of students regarding deemed appointment of directors. Most of students did well in exam for this question. The same kind of question was asked in November 2008 examination too.
Question no. 1(b), really good question. Question require to combine few sections to arrive at answer. It deals with sections 188, 184 and 167. Most of students who have written answer should have concept clarity otherwise they will not get good marks. Examiner will assign 2-3 marks for loose answer.
Question no 2(a)(i) is testing knowledge on oppression and mis-management. It has two concepts for testing. One, requisite number for making an application for oppression and mis-management and second, incurring losses and not declaring divided amount as mismanagement? 4 marks will be divided between these two concepts. The question is similar to the past question asked in May 1999 & May 1997.
Question no 2(a)(ii) is testing knowledge on compromise-amalgamation etc. In my opinion, it is cash cow question as weightage is four marks. The question is similar to the past question asked in May 2003, 2010, 2017 & November 2014. It is routine and ordinary question.
Question no. 2(b) is based on SARFESAI Act, 2002. Question needs understanding on “NPA” and “Section 31”. Question had been asked in past on section 31. Concept of NPA is explained in good way in study material of ICAI. As it is for 6 marks, one has to explain relevant theory part in good manner followed by application and its conclusion.
Question no. 3(a) is asking on validity of act of tribunal from perspective of Companies Act, 2013. It falls within chapter of winding up. Most of students are not paying much attention to winding up provisions. Remember, it is question for 8 marks. If you could not write it in well manner, it is great loss. It deals with section 301 of Companies Act, 2013. In my opinion, it is cornered question. Good choice of question.
Question no. 3(b)(i) and (ii) are based on past questions asked. It is on money laundering. Students should not forget that ICAI is continuously asking questions on PMLA. It is for 2+4 marks. ICAI is asking question from PMLA from certain topics like; punishment of ML, Section 5 & 12 in majority of cases.
Question no. 4(a) (i) is related to SEBI Guideline (now it is SEBI (ICDR) Guidelines 2018) and testing knowledge on eligibility for making IPO. For, four marks, it is lengthy question in my opinion. Sub-questions are designed in such manner so as it requires clear concept clarity to write answer in perfect way.
Question no. 4(a)(ii) is related to SCRA and pure theory type question. Remember, it is asking factors and not penalty amount. Many students do not read it carefully and write something else which was never required by examiner.
Question no. 4(b) is related to FCRA. In times to come, importance of FCRA is likely to increased as Government is implementing it strictly. I except at least one question from this chapter. For, 6 marks it tests two concepts; one-eligibility for registration and second provisions for cancellation. It is good question in my opinion, newly drafted by ICAI.
Question no. 5(a) is really good drafted question and related to dormant company. In my opinion, it is like question asked in ICSI final paper. It requires understanding concept of significant accounting transaction. For, 8 marks, it is good question. When special resolution is required is good dot for pondering. Only students who are through with procedure can answer it.
Question no. 5(b) is class question. Its tricky question. Most of students shared with me that it was lengthy question but it is not. It requires understanding of section 53 of IBC. IBC has good coverage in exam. Priority of payment if understood but not presented in good manner in answer will not fetch good marks. Students may take note that IBC will have good questions in exam yet to come.
Question no. 6(a) and its optional question are good and can be answered by students easily. With respect to alternative question, it requires good understanding of temporary loan within section 180. It requires good working note too.
Question no. 6(b) is again good question and related with disqualification of directors. It is based on question asked in past.
Question no. 6(c)(i) is again on PMLA…See total weightage of PMLA is 9 marks. 10% of
total paper. But it is based on understanding of rank of Asst. Director. Whereas question no. 6(c)(ii) is related to IBC. It is on the committee of creditors and provisions relating to it. Remember provision of IBC relating to appointment or replacement of IRP shall be approved by 66% of voting shares of financial creditors. Earlier it was 75%. It has been amended last year.
I would like to place concluding remarks in following bullet points for students of November 2019 attempt and subsequent attempts:
- PMLA, IBC, SEBI Related topics are favoruite for the examiner
- One question from FCRA
- Most of questions related to application of small or cornered theoretical part
- Now, you cannot rely on “director topic” only to clear exam with good marks
- Presenting answer to the point in clear and concise language is required. Students need writing practice to perform better in final examination.
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