Finology
Finology

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


Case studies are crucial in CA Final exams. The bulk of the paper in subjects like Law, IDT and DT is devoted to Case Studies. Scoring in these questions depends equally on content and presentation.

 

The following things should be remembered while attempting case studies:

 

1.      Write the applicable provisions of the law or case laws first. You don’t have to quote the exact language. Just explain the provision in simple language.

 

2.      Do not rephrase the question. Write only the relevant facts asked for in the question.

 

3.      Explain your interpretation of the provisions and relate them to the given case.

 

4.      State your conclusion clearly.

 

To illustrate, we have taken a past attempt question from the CLSP paper.

 

The Annual General Meeting of M/s Robertson Ltd., for laying the Annual Accounts thereat for the year ended 31st March, 2004 was not held, as the accounts were not ready.  Advise the company regarding compliance of the provisions of Section 220 of the Companies Act, 1956 for filing of copies of Annual Accounts with the Registrar of Companies.[1]

 

Presentation 1

 

The AGM of M/s Robertson Ltd. for the year ended 31st March, 2004 was not held. Annual accounts to be laid at the AGM were not prepared.

 

The same is not in accordance with the section 220(1) and section 220(2) of the Companies Act, 1956. Section 220(1) requires laying down of balance sheet and profit and loss account before the AGM. Section 220(2) requires that if AGM does not adopt the Annual Accounts or if the AGM for any year is not held, a statement of that fact and of reasons therefore shall be annexed to the accounts filed with the Registrar of Companies.

 

Thus, in the given case, M/s Roberson Ltd. should file a statement that AGM was not held, as the accounts were not ready.

 

Presentation 2

 

Under section 220(1) of the Companies Act, 1956, after the balance sheet and profit and loss account have been laid before the AGM, three copies thereof be filed with the Registrar of Companies, within 30 days from the date on which the Accounts were laid at the AGM.

 

Where the AGM for any year has not been held, the Accounts shall be filed with the Registrar of Companies within 30 days from the latest date when the AGM ought to have been held in accordance with the provisions of the Act, namely, sections 166 and 210 of the Act. 

 

Under section 220(2), it is also provided that if AGM does not adopt the Annual Accounts or if the AGM for any year is not held, a statement of that fact and of the reasons shall be annexed to the accounts filed with the Registrar of Companies.

 

In the present case AGM was not held, by 30.9.2004 as required under sections 166/210 of the Act.  Thus, the balance sheet and profit and loss account for the year ended 31.3.2004 should be filed with the Registrar of Companies by 29.10.2004 along with a statement that AGM was not held by 30.9.2004 as the accounts were not ready.

 

In the given illustration, both answers are correct but there is marked difference in the presentation. Some of the mistakes in presentation 1 are:

 

¨       The answer starts with a repetition of the facts of the case, which is totally uncalled for.

 

¨       The conclusion is given before even stating of the relevant sections.

 

¨       The sections have not been correlated with the problem.

 

The conclusion is correct but not complete. It is generally the conclusion that fetches maximum marks



[1]       Adopted from the Suggested Answers of ICAI.


Published by

ChughGhai
(kk)
Category Students   Report

11 Likes   84 Shares   26094 Views

Comments


Follow


Popular Articles




Follow taxation Exam20 Book Book Book caclubindia books


CCI Articles

submit article

Stay updated with latest Articles!




update