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Balbharti Yuvakbharati English 11th Digest Chapter 2.1 Cherry Tree Notes, Textbook Exercise Important Questions and Answers.

Maharashtra State Board Class 11 English Yuvakbharati Solutions Chapter 2.1 Cherry Tree

11th English Digest Chapter 2.1 Cherry Tree Textbook Questions and Answers

Question 1.
Trees are revered because –
Answer:

1. They give us joy.
2. They look beautiful with their lush green leaves that soothe our eyes.
3. They clear the air by providing oxygen for us to survive and by taking away carbon dioxide to prevent pollution.
4. They provide us food and many useful things.
5. They provide habitat and food for birds and insects.

Question 2.
Column ‘A’ shows your involvement in growing a tree, as well as the stages in the life of a tree. Column ‘B’ shows the feelings you experience at all the stages. Match them appropriately.

Answer:

(A1)

(i) Find proofs from the poem for the following:

Question (a)
The poet has mentioned different seasons.
Answer:
(a) “And suddenly that summer…”
(b) “Next spring”.

Question (b)
The poet’s minute observations of the steady growth of the cherry tree.
Answer:
(a) “I found a tree had come to stay.
It was very small, five months child,
Lost in the tall grass running wild.”

(b) “Next spring I watched three new shoots grow.
The young tree struggle, upward thrust.
Its arms in a fresh fierce lust For light and air and sun”.

(c) “I could only wait, as one
Who watched, wandering, while Time and the rain
Made a miracle from green growing pain….”

Question (c)
The colour imagery in the poem.
Answer:
(a) ‘Green’ colour used in the poem quite often and it represents ‘life’.
(b) ‘Pink’ colour used to show the tenderness, fragility of the berries.
(c) ‘Blue’ colour used for the sky as it represents the clear sky which the poet could see through the gap of the leaves of the cherry tree.

Question (d)
The struggle of the cherry tree for survival.
Answer:
(a) “It was very small, five months child,
Lost in the small grass, running wild”.

(b) “But cherries have a way of growing,
Though no one’s caring very much or knowing”.

(c) “Goats ate the leaves, the grass cutter scyth0e
Split it apart and a monsoon blight
Shrivelled the slender stem…Even so,”
All these dangers were handled by the plant boldly since it had the urge to live.

(d) “The young tree struggle, upward thrust
Its arms in a fresh fierce lust
For light and air and sun”
The young tree refused to accept defeat and continued its struggle for survival in order to get the basic necessities of light, air and sun needed for its growth.

(ii) State whether the following statements are True or False. Correct the false statements by finding evidence from the poem to support your remark.

Question (a)
The cherry tree did not take long to grow.
Answer:
False. The cherry tree took eight years to grow into a six-feet high full-grown, fruit-bearing tree.

Question (b)
Birds and insects were benefited from the tree.
Answer:
True

Question (c)
The poet was exalted at the sight of the cherry tree.
Answer:
True

Question (d)
The poem has an underlying message about the importance of trees.
Answer:
False. The underlying message in this poem is not about the importance of trees. It mainly stresses on the struggle against adversities of life and how dedication and desire to survive can help any living object to come out of it.

Question (e)
The poet repents planting the cherry tree.
Answer:
False. The poet actually enjoys watching the magnificent cherry tree and takes pride in being the owner who has decided to sow the seed of this cherry tree.

3. Discuss the reasons/consequences/effects.

Question (a)
The life of the cherry tree was threatened.
Answer:
The cherry tree was so small initially that it was lost among the tall, wild grasses all around it. The threats in its life were the goats who ate its leaves, the grass cutter’s scythe that could split it apart and its tender stem had to fight the heavy monsoon. Moreover, no special attention or care was provided for it. But it was a fighter who could face all these threats boldly

Question (b)
The cherry blossomed.
Answer:
In spite of not getting any special care, the cherry tree, just by its urge to survive, could raise its head, fought all the odds in its life, came out successfully to nurture itself with the basic necessities for its growth, the light, the rain and sun. With the passage of time, its hard work bore fruits and it became a six-feet high full-grown tree which happily blossomed with fruits.

Question (iii)
A small thought, put in action, led to a great achievement. Pick out the lines from the beginning and end of the poem and explain their significance.
Answer:
(i) “Must have a tree of my own” I said.
The poet just wanted to be the sole owner of a tree and just with this simple thought in his mind he sowed the cherry seed. It is just a passing idea of his mind which he easily forgot. But the cherry seed had the potential to grow in spite of not having proper care and lots of threats on its onward journey in life. It was a winner all the way to grow into a magnificent fruit-bearing tree as it was dedicated to fight the odds.

(ii) The lines at the end of the poem, “Yes, I! – praised Night and Stars and trees. That small, the cherry, grown by me” express the pride of the poet who takes the credit for creating such a beautiful life. He has, no hesitation to accept that the cherry tree has struggled hard to come to this stage. But, at the same time, he is excited that the process has been started by him and the result is unbelievable.

(A3)

Question (i)
The cherry tree has inspired the poet to compose the poem. Such poems, describing Nature or aspects of Nature are called ‘Nature poems’. Find out some expressions from the poem that bring out the elements of beauty of Nature.
Answer:
1. “I could scarcely believe it – a berry,
Ripened and jeweled in the sun…”
2. “……. there were blossoms small
Pink, fragile, quick to fall…”
3. “Looking up through leaves… each bloom”.
4. “…the sun sank…crickets…”

Question (ii)
Find out an example of climax from the extract and explain it.
Answer:
“Pink, fragile, quick to fall”
They move from healthy to delicate
This figure of speech is called Climax where successive words, phrases, sentences are arranged in ascending order of importance. Here, the cherry blossom turns pink, ripens and is ready to be picked.

Question (a)
Alliteration:
Answer:

1. “Shrivelled the slender stem…” sound of ‘s’ is repeated.
2. “Its arms in a fresh fierce lust…” sound of ‘f is repeated.
3. “Made a miracle from green growing pain…” sounds of‘m’ and ‘g’ are repeated.
4. “… at the finches as they flew/And flitted through…” sound of‘f is repeated.
5. “the sun sank/swiftly…” Sound of ‘s’ is repeated.
6. “who watched, wondering, while time…” sound of‘w’ is repeated.

Question (b)
Antithesis:
Answer:
1. “…. but cherries have a way of growing,
Though no one’s caring very much or knowing”.
– Two opposite ideas of the steady growth of the tree in spite of not having much care and even knowledge of its presence, are placed side by side.

2. “Came back thinner, rather poor,
But richer by a cherry tree at my door”.
– Two opposite ideas of having poor condition of health but feeling rich at the sight of the cherry tree, are placed side by side.

Question (c)
Personification:
Answer:
1. “A tree had come to stay”
– The tree has been personified by giving it the human quality of coming to stay.
2. “The grass cutter scythe split it apart”
– The grass cutter scythe is personified.
3. “a monsoon blight shrivelled…”
– Monsoon is personified.
4. “The young tree struggle”
– The young tree is personified by giving it the human quality of struggling.
5. “the sleepiest breeze”
The breeze is personified.
6. “singing crickets”
– Crickets are personified.
7. “The young tree … thrust/its arms in a fresh fierce lust”
– The young tree is personified as it expresses its ‘lust’ like a human being.

(A5)

Question (i)
Cherry tree is a narrative poem. Features that make it a narrative poem are given below. Justify them with proper examples.

• The poem has a beginning, a middle and an end.
• Different places are mentioned.
• Characters are referred to.
• Incidents are arranged in sequence.
• There is a dialogue between the poet and the reader or the characters of the poem.
• It is a time-bound poem.

Answer:
‘Cherry Tree’, a narrative poem which tells the story of the birth and growth of a cherry tree by the poet, Ruskin Bond. He carefully divides the poem in three distinct division of a proper beginning, a middle and an end as we usually find in a story.

The story begins with the planting of a seed of a cherry which the poet, a young boy sows in order to have a tree of his own. He forgets to take care of the planted seed but the plant, with the help of nature and rain has a natural growth. On its journey to its growth, it faces many odds in life, but by sheer will-power survives all adversities. Meanwhile, the poet has to go to Kashmir. When he comes back he is surprised to see a full-six-feet high fruit-bearing tree at his door. The poet is ecstatic in this middle part of the story.

At the end of the story, the poet spends time in company of his cherry tree from dawn to dusk, enjoying the sights and sounds, birds and insects, the bright sun and the twinkling stars. He concludes the poem expressing his pride for being the creator of such an atmosphere because of his own cherry tree.

The poem shifts to different places at different times as it begins in the poet’s garden where the cherry tree has been sowed, tells the readers about the poet’s visit to Kashmir, comes back to see the cherry tree at his door and finally ends at his garden where the cherry tree stands tall.

The cherry tree is the protagonist, that is, the main character of the story which narrates the different phases of the life of the tree in a span of eight years. The poet, the owner of the cherry tree also represents a character of the story since he is the one who is involved in the life of the tree. Sometimes actively and sometimes by narrating the happening in its life. Apart from these two main characters, there are some small characters like the goats, the grass cutter, the birds and insects who also play small but significant roles in the story.

There is definitely a continuity in the presentation of the story in a sequence. From the planting of the cherry seed in the poet’s garden, its life as a baby with tall grasses hiding it, its struggle for survival without having much care, its aggressive growth to get light, air and sun and finally becoming a six-feet high fruit-bearing tree.

There is no direct conversation among the poet, the readers and the other characters in the poem but the presentation of the happenings in the story makes it appear as if the cherry tree is expressing its desires and determinations to the poet. In the beginning of the poem also the poet tells his readers the reason for his sowing the cherry seed and that is given in direct speech as if he is talking to his readers.

It is a time-bound poem since the sowed cherry seed grows into a full-grown tree in a span of eight years. The poet also intermittently, keeps on mentioning about the change of season during the growth of the tree, his stay in Kashmir for one season and finally after his return his feeling of happiness or seeing the fruit-bearing six feet high tree.

Question (ii)
Compose 8 to 10 lines. Narrate any incident in your life without using any rhyming pattern.
Answer:
Speaking Tree

“Look at me. Don’t like to see me? Green and soothing to the eye?”
Somebody called me as I was walking away.
I stopped, looked around, curious to know the speaker,
Herd the voice again, this time with more emotions.
“Have mercy on us, don’t kill us day in and day out”,
Save trees, save environment – everyone’s demand, I suppose,
But who listens? sky scrappers mushroom, higher and higher,
All are happy, no need to think about our fall.
Yet we love you, want to care and serve,
One earth, one planet, with you let’s share.

Question (iii)
Write an appreciation of the poem.
Answer:
The poem ‘Cherry Tree’ is about the poet Ruskin Bond’s excitement over a cherry tree whose seed he planted eight years ago and the steady growth of the plant to a big tree, bearing tender cherries. The existence of the tree is so important for the poet that he has not thought of any other title but the simple ‘Cherry Tree’ to make the tree appear all important.

The poet planted the seed of the cherry just because he wanted to own a plant. The plant grew on its own without much care from anybody except nature and rain, learnt to fight against all odds and was finally successful in bearing tender berries. The poet, after spending a season in Kashmir, came back to get the surprise of a six feet high cherry tree at his door. He felt so attached to the tree that he started spending long hours, from dawn to dusk, in the company of his cherry tree, watching the flora and fauna around it and taking pride for being responsible for the existence of the tree.

The poet used simple language to narrate the birth and growth of his cherry tree. The process is known to all but the narration made it an interesting story. The figures of speech used are all common ones and easy to understand. The beauty of the nature can be enjoyed and appreciated by one and all because of the informal language.

The poet has stuck to the topic of the cherry tree right from the beginning to the end of the poem. Ruskin Bond basically writes for the children and he has not done anything where a child’s attention can be diverted from the cherry tree. The child can easily identify with the feelings and joys of the poem and this gives the poem its exclusivity.

But the poem also has a food for thought, a deeper meaning of struggle for survival, qualities needed to fight back and be a winner, dedication, growth and pride. The cherry’s fight starts at a very young age when it appears difficult because of it small size. But, as it grows up it learns, through experience, to be stronger.

The similar situation happens in human life also. The learning process continues at every young stage of life and makes a person capable of handling the adversities as tactfully as possible. The poet is proud that he has planted the cherry seed which now gives him so much of satisfaction as the parents of an individual feels seeing the success of their child.

It gives me immense pleasure to read and understand the beauty of the poem, The clarity in the language and the lucidity of presentation help me enjoy each and every stage of the growth of the cherry tree. I am able to connect with its struggle and feel related when it wins the race of life.

Question (iv)
Write a summary of the poem using the following points.
• Title
……………………………..
Introductory paragraph (about the poem, type, Nature, tone)
……………………………………………………………..
……………………………………………………………..
• Main body (central idea, gist of the poem)
……………………………………………………………..
……………………………………………………………..

Conclusion (opinion, views, appeal)
……………………………………………………………..
……………………………………………………………..
Answer:
Refer Synopsis

(A6)

Question (i)
Write the poem ‘Cherry Tree’ in the form of a story.
Answer:
Refer Towards Appreciation (1) question (paragraph 1, 2, 3).

Question (ii)
Write in 100 words what the cherry tree in the poem symbolises.
Answer:
The cherry tree symbolises struggle, patience, devotion, growth and responsibility. Just like an individual who faces problems in life, is able to come out of it if he is ready to face it bravely, the cherry tree resists all hazards in its life to grow into a beautiful six feet high fruit-bearing tree. The poet only helped the tree to grow by planting the seed but it was defenseless after that. However, with growth, stability has come into its life. The poet may be suggesting that it can also happen in human life. So, like a parent he feels responsible for its growth.

Question (iii)
You have studied the lesson ‘The Call of the Soil’ from prose 1.3. Compare ‘Cherry Tree’ with ‘The Call of the Soil’ and find out the element of joy of nurturing for the author and the poet.
Answer:
The author of “The Call of the Soil” Mr. Venkateshwaran Iyer, was unsuccessfully searching for the aromatic rice Kasbai for months and suddenly the old lady from a remote village gave him the good news of of having the rice. This revelation from the old lady was indeed very exciting for him. Ever since, he had heard about the rice, he had cherished the dream of growing it and now he could see the possibility of his dream to be fulfilled.

The poet Raskin Bond told the readers the story of his cherry tree whose seed he had planted but forgot to take care of it. After a gap of eight years, when he saw the full-grown tree with fruits on it, his joy, like Mr. Iyer knew no bound. The similarity in both the stories in the element of fulfillment of desire.

(A7)

Project:

Question 1.
Visit the library and collect at least five poems of any Nature poet. Write the poems along their summary.

Yuvakbharati English 11th Digest Chapter 2.1 Cherry Tree Additional Important Questions and Answers

Question 1.
The thought which prompted the poet to plant the cherry seed.
Answer:
The thought which prompted the poet to plant the cherry tree was to have a tree of his own.

Question 2.
The threats to the cherry sapling were –
Answer:
The threats to the cherry sapling were (i) goats (ii) grass cutter (iii) monsoon

State whether the following statements are True or False and correct the false statements.

Question (i)
They destroyed the cherry tree.
Answer:
False. They damaged the cherry sapling but could not destroy it as it had a violent urge to move ahead.

Question (ii)
The cherry tree had an instinct to survive.
Answer:
True

Question (iii)
The blossoms are fragile.
Answer:
True

Question 4.
The poet felt richer because –
Answer:
The poet felt richer because he had a six feet high cherry tree of his own at his door.

Question 5.
The beneficiaries of the cherry tree are –
Answer:

1. The finches, that is, the seed-eating songbirds.
2. The ecstatic bees who drank nectar from each bloom.
3. The moon-moths who took shelter in the tree.
4. The singing crickets who took shelter in the tree.
5. Of course, the poet himself who claims to be the owner of the tree, provides enjoyment for himself as well as other beneficiaries.

Comprehension

Read the extract and complete the activities given below.

Global Understanding:

Question 1.
Complete the web to show the growth of the cherry tree. (Answers are given directly in bold)

Answer:

Question 2.
Describe the struggle of the cherry tree during its growth.
Answer:
The young cherry tree had to really work hard to grow into a full-grown tree. It had pushed itself strongly and aggressively in order to get the benefit of light, air and sun. It had nobody to take care and so it had to make its own effort to fulfill its desire to survive and develop.

Personal Response:

Question 1.
State in about 50 words your worries about cutting of trees for human habitation. Suggest atleast one solution.
Answer:
I understand the necessity of providing place for human habitation but at the same time I am worried about cutting of trees for that purpose which is one of the main causes of environmental pollution. My suggestion is to make it compulsory for all housing societies to plant trees to get ‘No Objection Certificate’.

Creativity:

Question 1.
Without using any rhyming pattern, write a poem of four lines about your enjoyment in thfe company of your friend.
Answer:
My friends are my assets, my lifeline,
our togetherness, everyone’s envy. We fight, we patch up,
we cherish our love and loyalty.
We’re committed to protect our friendship,
protect we must.

Appreciation:

Question 1.
Write a critical appreciation of the extract with the help of the following points. (100 -150 words).

1. About the extract
2. Theme and significance
3. Poetic style, language, features / poetic devices
4. Inspirational message, moral, reflected
5. Your opinion and critical evaluation of the extract.

Answer:
The extract brings out the struggle for survival of the cherry tree which had nobody to take care of it. It also depicts the excitement of the poet when he sees the full-grown tree with ripened berries hanging from it.

The poet has used simple language and common figures of speech like Alliteration, Antithesis to express the process of growth of the cherry tree and his own excitement of seeing the six-feet high tree.

But the extract also draws attention towards the qualities needed to survive and be a winner. The poet appreciates the cherry tree’s process of growth and is proud to own it. His satisfaction comes out very clearly like the proud parents who glow in the glory of their child. The will-power of the young plant to grow and the appreciation of the poet of the fully-grown cherry tree appeal to me immensely as a reader.

Glossary:

1. scythe – mowing and reaping tool with slightly long curved blade attached to a handle used to cut long grass and grain
2. blight – a plant disease typically one caused by fungi
3. shrivelled – wrinkled or shrunken due to lack of moisture
4. dried slender – thin
5. struggle – making forceful against odds
6. thrust – to push with sudden impulse or force
7. fierce – displaying a violent urge
8. lust – strong desire
9. miracle – a welcoming or happy event developing by chance that cannot be explained with reason or science
10. scarcely – almost not
11. ripened (ripen) – became or made ripe
12. jeweled- adorned with jewels
13. blossoms – bloom
14. fragile – weak
15. finches- a small seed-eating songbird flitted – pass lightly softly or rapidly
16. dappled – marked with rounded patches
17. ecstasy – a feeling of greatest happiness
18. nectar – a sweet fluid secreted by plants
19. moon-moths – a large pale long green moth
20. crickets – an insect, characteristic for it is its musical chirping sound.

Balbharti Yuvakbharati English 11th Digest Chapter 1.6 Tiger Hills Notes, Textbook Exercise Important Questions and Answers.

Maharashtra State Board Class 11 English Yuvakbharati Solutions Chapter 1.6 Tiger Hills

11th English Digest Chapter 1.6 Tiger Hills Textbook Questions and Answers

1. Ajoy and Sujoy went to watch a cricket match. They enjoyed it very much, but they missed their friends Vinay and Sunay. Next day, when the four friends met, Ajoy reported how the game was played, how the players performed and how the game ended. Sujoy told them that they missed Vinay and Sunay very much and they were eager to tell them about the enjoyments.

Question (i)
Complete the following sentences:
Answer:
(a) Ajay reported about the strategy of the game, the performance of the players and the way the game had ended.
(b) Sujoy reported about their feeling of missing their other two friends Vinay and Sunay and also about their eagerness to tell them how much they had enjoyed watching the cricket match.

Question (ii)
The word ‘report’ means –
(a) Give a spoken or written account of something.
(b) Cover an event or subject as a journalist or reporter.
Answer:
(a) Give a spoken or written account of something.

2.

Question (i)
Find out the meaning of the following words:
Answer:
(a) Reportage: The reporting of news by the press and the broadcasting media.
(b) Reporter: A person employed to find out informations about the news events and describe them for a newspaper, magazine, radio or television.
(c) Reported Speech: When a speaker’s words are reported in subordinate clauses governed by a reporting verb and the necessary changes of person and tense.
(d) Reportorial: A writer, investigator or presenter of news stories.

Question (ii)
Make a list of the factors which make war stories or war-movies interesting.
Answer:
(a) They are usually based on historical facts.
(b) They need to have a gripping story line.
(c) They help us to understand the risks and sacrifices of the soilders.
(d) They make us realize the importance of peaceful co-existence and the futility of war.

(A1)

Question (i)
Imagine that you are about to interview the writer. Write 10 to 15 questions regarding the operation.
Answer:
On the 20th Anniversary of Kargil war, we remember an armed conflict between India and Pakistan in the Kargil District of Kashmir and elsewhere along the Line of Control. We are fortunate to have in our studio General Ved Prakash Malik, who was the Chief of the Army Staff of India at that time.

Excerpts from the Interview :

1. Good Morning, General Malik ! We are fortunate to have you in our studio on a day which is considered a zed-letter day in Indian history. What is the first word that comes to your mind when Kargil war is mentioned?
2. How confident were you about Indian Victory?
3. Was our Army prepared for such a difficult operation? Please give one or two examples.
4. Your book on ‘Kargil’ says it all. How did you feel while narrating or rather reporting the events of those days?
5. Kargil was the first war in Indian military history when media covered the entire battle live. How did you feel when you watched the coverage?
6. What was your first reaction when this proposal came from media?
7. You must have spent many sleepless nights when your boys were fighting a tough battle in Kargil. Share with us some of your experiences of those days.
8. We have heard many stories of Kargil war like Vikram Batra, ‘Yeh Dil Mange More’. Tell us one or two of your unforgettable memories associated with ‘Operation Vijay’.
9. There must be some memories of disappointments also. How did you handle them?
10. What is your comment on the humanitarian norms maintained even at a time of emergency?
11. How are the families of the Armymen involved when a war like this goes on?
12. What was your first reaction when you heard about the moment of victory?
13. What were your key words to your boys when you talked to them after they successfully accomplished the tough job?
14. My last question to you is what do you want to say to the civilians about their behaviour during a war or a war-like situation?

Thank You very much General Malik for giving your valuable time to our viewers and all of us to make us know so many facts about the Kargil war.

(A2)

Question (i)
Enlist any four facts which made the capturing of Tiger Hill a national challenge.
Answer:

1. The top of the Tiger Hill appeared almost impossible to capture since the enemy position on this mountaintop dominated parts of Srinagar-Kargil-Leh highway.
2. Bad weather and a poor visibility due to darkness were two major hindrances for the Indian Army.
3. Accurate firing by the well-trained enemy soldiers from the southernmost high ground was stalling the Indian Army for some time.
4. Prevention of enemy reinforcements was an urgent necessity to evict the enemy from the Tiger Hill.

Question (ii)
Different arms and ammunitions are mentioned in the excerpt. Find their names.
Answer:
Some of the arms and ammunitions used in the operation Tiger Hill are :

1. Bofors Guns
2. Individual Guns
3. Multi barrelled Grad rocket launchers
4. Mortars
5. Artillery
6. Grenades
7. Field and medium guns

Question (iii)
“Wars are not fought only on the battlefield’. Comment.
Answer:
This statement is true. Since in every walk of life, people have to fight to get their demands fulfilled and justice to prevail. The military war is, of course, fought in the battlefield but the family of the soldiers and the civilians also get involved since the country goes through a difficult phase.

In our day to day life also, we have to fight a number of battles. War against corruption, diseases, price-rise, natural disasters causing immense suffering and the fight one has to do to combat that, are all the wars that are not fought in the actual battlefield. They also have to be fought on the battlefield of life and they are the struggles for survival.

Question (iv)
Make a list of the preparations made for an assault on Tiger Hill.
Answer:
(a) Throughout the last week of June 1999, 18 Grenadiers probed to establish the extent of the enemy’s defences.
(b) They also explored to find out suitable routes for the assault.
(c) After confirming the multidirectional assault as the best strategy, the commanding officer drew up an elaborate artillery fire plan.
(d) Individual guns were ranged so as to cover each objective.
(e) Bofors guns were used in a direct firing role.

Question (v)
Complete the flow chart showing the events on the day of the assault.

Answer:
Question (vi)
Rewrite the given statements in their order of occurrence.
The most difficult task of maintaining the hold on Tiger Hill was achieved in this way :
(a) 8 Sikh was ordered to attack and capture Helmet and India Gate.
(b) Bodies of the Pakistani soldiers were collected and buried appropriately.
(c)During the ferocious artillery duels the Grenadiers hung on their precarious perch with grit and determination.
(d) 8 Sikh fought back successfully two counterattacks with forty to fifty personnel.
(e) An adhoc column of 8 Sikh climbed the steep rock and captured India Gate.
(f) In spite of heavy casualties, 8 Sikh captured Helmet on 5 July.
Answer:
(a) During the ferocious artillery duels the Grenadiers hung on their precarious perch with grit and determination.
(b) 8 Sikh was ordered to attack and capture Helmet and India Gate.
(c) An adhoc column of 8 Sikh climbed the steep rock and captured India Gate.
(d) In spite of heavy casualties, 8 Sikh captured Helmet on 5th July.
(e) 8 Sikh fought back successfully two counterattacks with forty to fifty personnel.
(f) Bodies of Pakistani soldiers were collected and buried appropriately.

(A3)

Question (i)
Find out the meanings of the following idioms / phrases and use them in your own sentences.
Answer:

1. To hit the bull’s eye – get something exactly right.
   The reporter’s comments on the negligence of the authority hit the bull’s eve.
2. To be taken by surprise – to shock someone by one’s sudden appearance on action.
   The enemy soldiers were taken by surprise when our soldiers attacked them suddenly.
3. To get a toehold – to get an initial, stable position to proceed further.
   My friend is trying to get a toehold in the entertainment industry by doing modelling.
4. Under the cover of – hidden or protected by
   The freedom fighters carried on many of their attacks under the cover of darkness.

Question (ii)
Find words from the text related to the war affairs.
Answer:
Brigadier, commander, capture, evicting, enemy, defense, mission, Mountain Brigade, artillery, combat, Grenadiers, strategy, assault, field, regiment, guns, The Air Force, military, target, company, infantry, captain, firefighting, duels, commando, hand-to-hand fight, bombardment, counterattack, battle, courage, reinforcements, Major, Lieutenant, soldiers, Subedar, casualties, Naib, Subedar, recapture, outcome, valour, victory.

(A4)

Question (i)
Find out the sentence with ‘Though, Although, Even though or But’ from the text and say its purpose.
Answer:
Although 18 Grenadiers held the top now, linking up with them was not so easy. Though/Although are subordinating conjunction which is used to introduce a subordinate clause and it needs a main clause to make it complete.

Question (ii)
Put ‘a/an’ or ‘the’ at proper places. Put a cross (x) where no article is applicable.
Answer:

1. Ravi walked up to the principal’s cabin.
2. Ahmed lives in a small town.
3. Can I use × Cell Phone?
4. Who’s the woman in your office?
5. I need an English-Marathi dictionary.

(A5)

Question (i)
Imagine you are one of the soldiers from 18 Grenadiers on the mission Tiger Hill. Narrate your experience of the war to your friend.
Answer:
Today I get goosebumps when I narrate to you about our mission Tiger Hill. Thankfully, at that time we were mentally alert and were prepared to combat our enemy. Now, I can refer to the incident as a ‘story’ but it is a reality to fight for the honour of our Motherland. I was one of the members or I should say soldiers of 18 Grenadiers who were assigned the mission of capturing the Tiger Hill with 8 Sikh, which was already posted at the base.

Moreover, a crack-team, that is, a highly specialized team of soldiers who could respond quickly and smartly, were with us to assist. We found out the extent of our enemy’s strength and searched for the suitable routes to attack. I still remember, on 3rd July, 1999, at 7pm, we started our multidirectional attack with the support of our fire power of artillery and mortars. You can’t imagine how bad the weather was.

There was darkness all around and it was extremely cold. In spite of all adversities, we were successful in holding the top of the Tiger Hill, but connecting with other companies was very difficult. The enemy camp also came out of their initial surprise and fierce counterattacks started immediately. Casualties were many and the numbers were increasing, but by God’s grace we could hold on the top, facing all dangers.

I must say here that my colleague Grenadier Yogender Singh Yadav and his team showed exceptional courage. 8 Sikh team decided another strategy of stopping the supply route to our enemy and that worked wonders.

To cut a long story short, finally the entire mission was accomplished on 3rd July, 1999 at night. We captured the Tiger Hill Top, though heavy fighting was still going on. But the enemy was unable to dislodge us and we won this fierce battle, thank God !

Today, as I narrated the happenings of those days, my eyes were filled with tears. We have won the Kargil war, our operation Vijay, but I have lost many of my friends. I salute those martyrs. They are the bravehears who sacrificed their lives to safeguard the prestige of our dear Motherland, India.

Question (ii)
Would you like to join Indian Army/Navy/ Air force? If not, suggest other ways in which you could serve your nation.
Answer:
I may not join Indian Army / Navy / Air Force but I want to be a teacher and facilitate all round development , of my students. I believe ‘Examples are better than precept’ .

So, I shall never try to preach, but follow certain principles in my own life to motivate the students to become not only sincere in studies but be good human beings to be assets to the nation. The bravehearts who captured the Tiger Hill Top by sheer grit and determination have taught me the lesson of hard work, perseverance and devotion. I shall try to inspire my students to achieve these qualities to be pillars which will hold the nation strongly.

Question (iii)
Report Writing:

Question (i)
Study the web diagram and write the characteristics of report writing.
Answer:
A report should present factual and unbiased informations in brief and then analyze the facts. The reporter need to convert the comments of a person in indirect speech. He/she should always write a report in past tense and use passive voice.

Question (a)
You are Sharad Mathur, the General Secretary of the Sports Club of your college. Write a brief report of the Annual Sports activities for the college magazine.
Answer:
Annual Sports Activities 2019-20

Sharad Mathur.
(General Secretary, Sports Club)

27 December 2019

The sports club of xyz college, Ghatkopar had planned Annual Sports Activities for the academic session 2019-2020.

A variety of indoor and outdoor games were listed and our principals Dr. Atul Shanbag had approved the entire list. The professor-in-charge for sports, Shri Pankj Malhotra and his team of students had arranged for Inter-Collegiate Sports meet also where many colleges from Mumbai and its suburbs were invited to participate. The response was overwhelming. But, -before that, many intra college competitions were organized for our students to get enough practice.

Sports events were planned for the teachers also where teachers from other colleges in our college campus participated. These activities were interesting and the students enjoyed a lot.

As General Secretary of the Sports Club, I thank our principal, sports teacher and all the teachers of our college as well as teachers of our college campus and my dear fellow students for making the sports activities of their academic year, a grand success.

Question (b)
Your school organised ‘Van Mahotsav Day’ recently. Write in about 100 to 150 words a report to be published in the school magazine.
Answer:
Van Mahotsav Celebration

XYZ
Secretary, Green Earth

6 June 2019

Van Mahotsav was celebrated by Green Earth, the environment club of our college with a lot of interest from the students on 5th June, the World Environment Day. The Mayor of Mumbai, was the Chief Guest and she planted a sapling on the college compound. The principal Ms. Shobha Patil urged the students and the teachers to plant more trees and to launch a campaign to save the environment.

Speaking on the occasion, Mayor Ms. Chande told that God had created environment and human beings to stay in harmony with each other. But unfortunately the imbalance between the two was disturbing. We should join hands to remove this imbalance.

Students of XIth standard presented a street play on saving the environment. A Cultural Programme concentrating on environment-friendly topics, was presented by the students. The programme ended with the vote of thanks offered by the secretary of the Environment Club of the college, who expressed his gratitude to everybody present there for encouraging such awareness drive.

Question (c)
You are the secretary of the NSS unit of your college. Write a brief report of the Blood Donation Camp arranged by your unit.
Answer:
Blood Donation Camp, 2019

Sushant Mehta
Secretary, NSS Unit

27 June 2019

The NSS unit of our college organized a blood donation camp on 24th June,2019 at 9am in the college premises. Dr. Ashok Patel, the eminent surgeon of KEM Hospital. Was the chief guest.

The programme started with the college prayer. NSS Convenor, Shri Ashish Chopra Sir, welcomed the chief guest and introduced him. Our principal, in her speech, thanked the respected chief guest, for sparing his valuable time to motivate the donors, for the noble cause.

Dr. Patel, in his simple but motivating words made the donors aware that blood donation was safe for healthy adult and there was no risk for contracting diseases as new sterile equipments are used for each donor. He also informed that the donor’s body usually replaced the liquid part of blood within 72 hours after giving blood. He advised the donors to take healthy meal, plenty of water and to have a good night’s sleep. One of the members of the NSS Unit offered Vote of thanks. The Blood Donation Camp was grand success because of the overwhelming response from the student donors and some of our teachers.

Yuvakbharati English 11th Digest Chapter 1.6 Tiger Hills Additional Important Questions and Answers

Question 1.
During the war the soldiers need to plan strategies.
1. Find the strategies planned.
2. Find some words related with such strategies.
Answer:
1. The strategies planned were:
(a) A thorough investigation to find out the extent of the enemy’s defenses
(b) To look out for the probable routes of the attac k
(e) Drawing of a detailed fire plan of the heavy weapons by the commanding officers
(d) Individual guns were ranged to cover each target
(e) Bofors guns were used in a direct firing with accuracy
2. Words related with such strategies are: scout, probe, enemy’s defences, suitable route, strategy, fire plan, direct firing, assault, targeted, accuracy.

Question 2.
The enemy was taken aback due to the steps taken by the Indian Army. With the help of the text find out strategies of the Indian Army for such a situation.
Answer:
Captain Sachin Nimbalkar who was leading ‘D’ company, moved ahead with his company in a steep slope at the edge of the plateau ignoring darkness and bad weather. The enemy could never imagine that this could be made possible by the Indian soldiers and naturally they were surprised. There was another surprise waiting for the enemy when Lieutenant Balwan Singh along with ‘C’ Company and Ghatak (Commando) platoon could reach through one of the most difficult north eastern extension of the mountain, just thirty meters away from the top.

Both these approaches caught the enemy unaware and the Indian Army achieved their objective. Media supported and assisted the battle live. Guess the risks of the media people as well as of the army. The live coverage of media has its pros and cons. It is indeed a sign of progress and helps the army to access their strategies at the break of the war or after the war.

But too much of transparency can create confusion and invite criticism from the world around. Of course, there are always the risks of loss of lives as well as severe injuries of the civilian media people who might not have proper military training.

A great humanitarian norm is maintained during the battle. Find out and comment on it. At the time of war, it is important to remember basic humanitarian principles of life and the Indian Army has done exactly that while handling the casualties in the battle of Kargil.

Pakistani Captain Karnal Sher Khan lost his life in the counterattack from Indian Army. His body was handed over to Pakistani authorities with due respect. Other bodies of the deceased Pakistani soldiers, which were lying all over the battleground, were collected and cremated appropriately with the proper honour, a martyr deserved. The narrator uses selective words to express the Victory. They are:

1. Jubilation
2. Relief
3. Replaced gloomy mood of the people
4. Stabilized Situation.

Comprehension

Read the extract and complete the activities given below.

Global Understanding:

Question 1.
Rewrite the given statements in their order of occurance:
(i) 18 Grenadiers probed to scout for suitable routes for the assault.
(ii) A crack team assisted both 18 Grenadiers and 8 Sikh.
(iii) Air Force joined Tiger Hill Mission on 2-3 July.
(iv) Media Projected Mission Tiger Hill as a national challenge.
Answer:
(iv) Media Projected Mission Tiger Hill as a national challenge.
(ii) A crack team assisted both 18 Grenadiers and 8 Sikh.
(i) 18 Grenadiers probed to scout for suitable routes for the assault.
(iii) Air Force joined Tiger Hill Mission on 2-3 July.

Say whether the following statements are true or false and correct the false statements.

Question (i)
The bodies of the Pakistani Soldiers were handed over to the Pakistani authorities.
Answer:
False. The bodies of the Pakistani soldiers were collected and buried appropriately.

Question (ii)
The writer got the news of the captured hill in the early morning.
Answer:
True

Question (iii)
When the Defence Minister landed at the New Delhi airport, the writer gave him the exciting news.
Answer:
False. The Defense Minister landed at the Amritsar airport

Question (iv)
The Indians were in a gloomy mood when the war was going on.
Answer:
True

Complex Factual

Question 1.
Why did the media project Tiger Hill Mission as a national heritage?
Answer:
The clear visibility of the top of the Tiger Hill from the highway posed a big challenge for the Army. Not only was it exposed to everybody but the level of difficulty could also be felt before the beginning of the mission. That made the media come to the conclusion of referring Tiger Hill Mission, a challenge for the nation since all the activities of the soldiers could be seen.

Question 2.
Why was the writer keen to make the announcement on 4th July.
Answer:
The writer was keen to make the announcement of the recapture of the Tiger Hill to the world as a meeting was scheduled on the same day between the Prime Minister of Pakistan and the President of the USA. As Pakistan always denied the existence of such a mountain feature labelling it as a figment of Indian imagination, it was important for the world to know the reality, making Pakistani denial impossible.

Inference / Interpretation / Analysis

Question 1.
Make a list of four strategies that were planned for Mission Tiger Hill.
Answer:
The strategies planned were:

1. A thorough investigation to find out the extent of the enemy’s defenses
2. To look out for the probable routes of the attack
3. Drawing of a detailed fire plan of the heavy weapons by the commanding officers
4. Individual guns were ranged to cover each target

Question 2.
Why did the writer decide to wait for the announcement of the capture of the Tiger Hill? Explain. Answer:
The writer, after consulting to GOC 15 Corps and Nirmal Chander Vij decided to wait for officer’s announcement of the victory since heavy fighting was going on. There was still no confirmation from GOC 8 Mountain Division who was at the forefront. So, the writer decided for the authentic news to come to him from somebody who was at the war front.

Personal Response:

Question 1.
Explain whether you support live media coverage of the war.
Answer:
Yes, I agree with General Malik when he talks about transparency through the live media coverage. It is definitely a sign of progress and must be helpful for the Army for the assessment of their strategies. But, at the same time, live media coverage can create confusion which the reporters need to be careful about.

Question 2.
Express your feeling after reading the passage.
Answer:
I feel proud about Indian soldiers who took risks to save the pride of our Motherland. I am also extremely impressed by the respect showed to the enemy soldiers who also laid their lives for their country. I respect the way the writer has shown his responsibility to make an official announcement.

Language Study:

Question (i)
A simultaneous multidirectional assault emerged as the best strategy.
(Use the word ‘Good’and rewrite)
Answer:
No other strategy emerged as good as a simultaneous multidirectional assault.

Question (ii)
The Air Force targeted Tiger Hill on 2-3 July and hit the bull’s eye several times. (Use ‘Not only But also’and rewrite)
Answer:
Not only did the Air Force target Tiger Hill on 2-3 July but also hit the bull’s eyes several times.

Question (iii)
In India, wave of jubilation and relief replaced the gloomy mood of the people.
(Use ‘not only but also’)
Answer:
In India, not only a wave of jubilation but also relief replaced the gloomy mood of the people.

Question (iv)
The enemy would not be able to dislodge 18 Grenadiers. (Remove Negative)
Answer:
The enemy would be unable to dislodge 18 Grenadiers.

Vocabulary:

Question 1.
Pick up some names of the artillery used for Mission Tiger Hill.
Answer:
Bofors guns, rocket launchers, field and medium guns, mortars.

Question 2.
Give noun forms of the following adding suffixes.

1. confirm
2. bury
3. collect
4. consult

Answer:

1. Confirmation
2. burial
3. collection
4. consultation

Grammar:

Question 1.
Use of a/an/the
a/an – Indefinite articles
‘a’ is used with consonents and ‘an’ is used with vowels, that is, with the letters, ‘a,e,i,o,u’. They are used when we mention something for the first time, e.g., ‘And on the mountain stands a tree’.
But, ‘the’, a definite article, is used with something already mentioned, e.g., ‘And on the tree there is a branch’.

Glossary:

1. majestically – with impressive beauty
2. vicinity – surrounding area
3. features – characteristics
4. projected – predicted
5. episode – incident / event
6. assigned – allotted / given
7. grenadiers – soldiers armed with Grenades
8. crack – team – highly specialized team who can do things quickly and smartly
9. combat – action / battle
10. scout – look out
11. spell – a short period
12. elaborate – detailed
13. assault – strike / hit
14. mortars – short, smooth bore-guns
15. transparency – clarity / openness
16. artillery – heavy weapons
17. intermediate – middle / in-between
18. negotiate – arrange / work out
19. steep – sharp
20. inclement – cold / chilly
21. orchestrated – planned
22. duels – Fight between two people to settle a point
23. bombardment – shelling
24. wore off – lessened / faded
25. gearing up – preparing for an activity
26. casualties – losses / deaths
27. grit – courage
28. evict – oust / remove
29. reinforcements – extra persons sent to increase the strength of the army
30. platoon – squad / unit
31. reverse – backwards
32. scattered – spread over large area
33. dislodge – remove / displace
34. confirmation – support
35. outcome – result
36. a figment of imagination – something made up / created by one’s mind
37. jubilation – joy / great happiness
38. gloomy – depressing / cheerless
39. acquitted – conducted oneself
40. velour – courage
41. battalion – army / contingent / unit
42. adjacent – situated near or close to something,
43. evicting: to remove somebody from a house or land, especially with the support of law
44. well- fortified – to strengthen a place well against attack
45. mission – a particular task done by a person or a group a particular aim or duty that one wants to fulfill more than anything else
46. protrusion – a thing that extends from the place or from the surface something that sticks out,spur- an area of high ground extending from a mountain or hill
47. escarpment – a long,steep slope at the edge of a plateau
48. precarious – not safe,dangerous,
49. perch – a high seat or position
50. adhoc – adv- when necessary or needed
51. tenure – the act or a period of holding an important, especially political position

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 6 Correspondence with Members Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 6 Correspondence with Members

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
Directors are the ____________
(a) paid employee of the company
(b) representatives of the shareholders
(c) creditors of the company
Answer:
(b) representatives of the shareholders

Question 2.
The dividend is to be paid to the shareholders within ____________ days from the date of declaration.
(a) 30
(b) 40
(c) 20
Answer:
(a) 30

Question 3.
Registered shareholders receive dividend through ____________ warrant.
(a) share
(b) debenture
(c) dividend
Answer:
(c) dividend

Question 4.
Shares issued free of cost to the shareholders are known as ____________ shares.
(a) preference
(b) equity
(c) bonus
Answer:
(b) equity

Question 5.
Share Certificate should be ready for delivery by the company within ____________ months after the allotment of shares.
(a) 3
(b) 5
(c) 2
Answer:
(c) 2

Question 6.
Secretarial correspondence with members should be ____________
(a) lengthy
(b) shortcut
(c) prompt and precise
Answer:
(c) prompt and precise

Question 7.
Dividend is recommended by ____________
(a) Board of Directors
(b) shareholders
(c) Depositors
Answer:
(a) Board of Directors

Question 8.
Dividend is paid out of ____________ of the company.
(a) Capital
(b) Building Fund
(c) Profit
Answer:
(c) Profit

Question 9.
____________ is issued by the company to its registered shareholders after the declaration of dividend at the Annual General Meeting of the company.
(a) Dividend Warrant
(b) Interest Warrant
(c) Share Warrant
Answer:
(a) Dividend Warrant

1B. Match the pairs.

Question 1.

Answer:

1C. Write a word or term or a phrase which can substitute each of the following statements.

Question 1.
Shares given free of cost to the existing equity shareholders.
Answer:
Bonus shares

Question 2.
Instrument for payment of dividend.
Answer:
Dividend Warrant

Question 3.
The shareholders to whom the bonus shares are issued.
Answer:
Equity shareholders

Question 4.
The authority which recommends the rate of dividend.
Answer:
Board of Directors

Question 5.
An officer who comes into contact with all the members of the company through correspondence.
Answer:
Secretary

Question 6.
A special kind of cheque issued by a company on its banker to pay certain sum of money as dividend to its members.
Answer:
Dividend warrant

1D. State whether the following statement are True or False.

Question 1.
Bonus shares are issued to existing equity shareholders.
Answer:
True

Question 2.
Building fund is used for issue of bonus shares.
Answer:
False

Question 3.
Bonus shares means capitalisation of reserve fund.
Answer:
True

Question 4.
Registered shareholder gets dividend through dividend coupons.
Answer:
True

Question 5.
Dividend is the portion of the profits of the company which is allotted to the holders of the debentures of the company.
Answer:
True

Question 6.
Every company must issue or dispatch a share certificate to the allottee within three months after allotment of shares.
Answer:
False

Question 7.
A complaint letter should not be replied promptly.
Answer:
True

1E. Find the odd one.

Question 1.
Secrecy, Dividend, Interest
Answer:
Secrecy

Question 2.
Bonus Letter, Dividend Letter, Board of Directors
Answer:
Board of directors

Question 3.
Dividend Warrant, Interest Warrant, Demat
Answer:
Demat

Question 4.
Secretary, Board of Directors, Dividend, Lucid Language
Answer:
Lucid Language

1F. Complete the sentences.

Question 1.
Dividend is recommended by ____________
Answer:
Board of Directors

Question 2.
A company capitalises its Reserve Fund for issue of ____________ shares.
Answer:
Bonus

Question 3.
Payment of dividend must be made within ____________ days of its declaration.
Answer:
30

Question 4.
Dividend is approved by the ____________ in the Annual General Meeting.
Answer:
Shareholders

Question 5.
The ____________ has to communicate the decisions of the management to the members by conducting correspondence.
Answer:
Secretary

1G. Select the correct option from the bracket.

Question 1.

(Written communication, Bonus shares, Dividend, ECS)
Answer:

1H. Answer in one sentence.

Question 1.
What is dividend warrant?
Answer:
Dividend warrant is written order given by the company to its banker to pay amount mentioned in it to the shareholder whose name is specified therein.

Question 2.
What is capitalization of reserve?
Answer:
Capitalization of reserves is the use of corporate reserves to pay a bonus to the shareholders in the form of additional shares.

Question 3.
What is Dividend?
Answer:
Dividend is the portion of profits of the company which is distributed to the shareholders of the company.

Question 4.
Who recommends the rate of dividend?
Answer:
The Board of Directors of the company recommends the rate of dividend.

Question 5.
Which type of shareholders enjoys the benefit of Bonus Shares?
Answer:
Equity share holders enjoy the benefit of bonus shares.

Question 6.
What is meant by payment of dividend electronically?
Answer:
Payment of dividend electronically means transfer of dividend amount through ECS (Electronic Clearing Service) NEFT(National Electronic Fund Transfer) etc.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
Dividend is recommended by shareholders.
Answer:
Dividend is recommended by shareholder.

Question 2.
The person who purchases shares of the company is called Depositor.
Answer:
The person who purchases shares of the company is called shareholder.

Question 3.
Bonus shares are issued as a free gift to the preference shareholders.
Answer:
Bonus shares are issued as a free gift to the equity shareholders.

Question 4.
Payment of dividend must be made within 21 days of its declaration.
Answer:
Payment of dividend must be made within 30 days of its declaration.

Question 5.
A company must issue the Share Certificate within three months of allotment of shares.
Answer:
A company must issue the Share Certificate within two months of allotment of shares.

1J. Arrange in proper order.

Question 1.
(a) Allotment of shares
(b) Application for shares
(c) Share certificate
Answer:
(a) Application for shares
(b) Allotment of shares
(c) Share certificate

Question 2.
(a) Member
(b) Applicant
(c) Bonus shares
Answer:
(a) Applicant
(b) Member
(c) Bonus shares

2. Explain the following terms/concepts.

Question 1.
Capitalisation of Reserve
Answer:
Capitalisation of reserves is the use of corporate reserves to pay a bonus to the shareholders in the form of additional shares. It is distributed to equity shareholders in pre-determined ratio.

Question 2.
Bonus Shares
Answer:
Bonus shares are fully paid up shares given by a company as a gift out of its accumulated profits or reserves to the existing equity share holders in proportion of shares held by them. It is given free of cost and also known as capitalization of reserves.

Question 3.
Dividend Warrant
Answer:
Dividend warrant is written order given by the company to its banker to pay amount mentioned in it to the shareholder whose name is specified therein. Dividend can be paid through Dividend warrant or by means of electronic mode ECS or NEFT etc. to those shareholders who are registered members i.e their names appear in the Register of members.

3. Answer in brief.

Question 1.
Which precautions are to be taken by the Secretary while corresponding with members?
Answer:
The Secretary has to communicate the decisions of the Management and other information to the members through correspondence. The Secretary should be very cautious and careful while corresponding with members of the company. Writing letters to the members is a challenging task and it requires skills, knowledge and techniques.
Following are the precautions that are needed to be taken by the secretary while writing different letters on different occasions:
(i) Correct Information:
The Secretary should always provide correct, up- to date and factual information to the members. Due care should be taken while giving facts and figures.

(ii) Lucid Language:
The Secretary must use simple words and sentences and adopt convincing style while writing letters to the members. The use of simple language makes it easy to understand. Technical words, long sentences should be avoided in the letter.

(iii) Prompt Response:
The Secretary must be prompt in sending replies to the letters received from the members. Any questions or queries raised by the members must be replied promptly by the Secretary. Complaint letters should be attended to without any delay.

(iv) Secrecy:
The Secretary should not disclose any confidential information of the company to the members. The Secretary should tactfully answer letters without giving any secret information of the company.

(v) Politeness (Courtesy):
A courteous letter shows sympathy, respect mutual understanding and consideration for the receiver. Use of courteous language means using polite words. A complaint letter should be replied politely. Rude language should be strictly avoided as it spoils image of the company.

(vi) Legal matters:
The Secretary should compulsorily follow provisions of the Companies Act, 2013 with latest amendments and other relevant laws. If necessary, secretary should consult with legal advisor on certain matters before drafting.

(vii) Consideration:
The Secretary should give importance and consideration to the reader and write the contents keeping in mind the problems of the member. While sending negative replies, he should draft these letters more carefully, so that members should not be hurt. Secretary should make the member feel that the management honestly regrets refusal.

(viii) Image of the Company:
The Secretary should try to project good image of the company in every situation. While drafting the letters, Secretary has to try his best to remove their doubts, queries and difficulties in a polite and courteous manner.

Question 2.
What are the circumstances under which Secretary undertakes correspondence with members?
Answer:
The following are the various occasions when the Secretary writes the letters to the members of the company:

• Allotment Letter when shares are issued to an applicant.
• Letter of Regret when shares are not issued to an applicant for any reason.
• Letter for issue of Share Certificate to the allotted members.
• Letter for Payment of Dividend through Dividend Warrant or Electronic Payment of Dividend.
• Letter for issue of Bonus Shares or rights issue.
• Reply letter to the query of the member on low rate of dividend.
• Approval of Transfer of Shares after serving lodgement notice to the transferor as well as the transferee.
• Refusal of Transfer of Shares, if call money is unpaid or any lien.
• Notice and Agenda of General Meeting.
• Reply to certain queries raised by the members.
• Letters to legal representatives regarding Transmission of Shares.
• Notice of loss of Share Certificate.

4. Justify the following statements.

Question 1.
The Company Secretary should take certain precautions while corresponding with members.
Answer:

• The Secretary has to communicate the decisions of the management and other information to the members through correspondence and hence, should be very cautious and careful while corresponding with members of the company. The Secretary should take precautionary measures while writing the letter by giving due respect to the members, and also provide complete and correct information techniques.
• The Secretary should always provide correct, up- to date and factual information to the members.
• The language used should be simple and convincing.
• The Secretary must be prompt in sending replies to the letters received from the members.
• He should compulsorily follow provisions of the Companies Act, 2013 with latest amendments and other relevant laws.
• The Secretary should try to project good image of the company in every situation.
• Thus, it is rightly said that, the Company Secretary should take certain precautions while corresponding with members.

Question 2.
There are certain circumstances when a Secretary has to correspond with members.
Answer:

• Secretary correspond with members on behalf of the company.
• Secretary acts as a link between the company and its members.
• When the shares are allotted to the members they are been informed through the allotment letter. Similarly, if the application of shares has been rejected then members are been informed by the regret letter.
• Secretary also informs members through letters on various occasions like issue of share certificate, payment of dividend, issue of bonus share, reply to the query raised by the member, etc.
• Thus, it is rightly said that, there are certain circumstances when a Secretary has to correspond with members.

5. Attempt the following.

Question 1.
Write a letter to the shareholder regarding issue of Bonus Shares.
Answer:

YASH INDUSTRIES LIMITED
Registered Office: 102, New MIDC, Usha Tower, Shahu Chowk, Mumbai – 400 031.
CIN : L40407 MH 2005 PLC710007

Tel. No.: 022-23252323
Fax No.: 022-23600445
Ref. No.: Y/MR-B/5/19-20

Website: www.yashindustrieslimited.com
Email: [email protected]
Date: 16th October, 2019

Ms. Yukta Shroff
715, Narayan Peth,
Laxmi Road,
Pune – 411 038.

Sub.: Issue of Bonus Shares

Dear Madam,

I am directed by the Board of Directors to inform you that in accordance with the resolution passed in the Extra-ordinary General Meeting of the company held on 14th October, 2019, shareholders have unanimously approved the recommendation of Board of Directors to issue Bonus Shares. Bonus Shares are issued in the ratio of 1:1, i.e. one additional equity share for every equity share held as on 13th October, 2019.

The Details of issue of Bonus Shares are as follows:

The Company has complied with the provisions for the issue of Bonus Shares.
The Bonus Shares issued will rank pari passu /equal with the existing equity shares.

Thanking you,

Yours faithfully,
For Yash Industries Limited

Sign
(Mr. S. R. Naik)
Company Secretary

Question 2.
Write a letter to the member for the issue of Share Certificate.
Ans.

COMFORT MOTORS LTD.
Registered Office : A/30, Aurora Towers, M. G. Road, Camp, Pune 411 012.
CIN : U12111 MH 2000 PCL300477

Tel. No.: 020-80032844
Fax No.: 020-50063015
Ref. No.: C/MR-SC/30/19-20

Website: www.comfortmotorsltd.com
Email: [email protected]
Date: 12th November, 2019

Mr. Jayant Modi
Abhiman Apartment
30, L. B. Road,
Pune-411 001.

Sub.: Issue of Share Certificate

Dear Sir,
As per your Request Application No. 50, I am, hereby, authorized by the Board to issue you a Share Certificate. The said Share Certificate will be delivered to you within 15 days from the date of this letter by registered post to your registered address as mentioned in the Register of Members.

It shall always be our endeavor/attempt to provide best of our services to you.
Thanking you,

Yours faithfully,
For Comfort Motors Ltd.

Sign
Mr. Anand Swami
Company Secretary

Question 3.
Write a letter to the member for the payment of dividend through Dividend Warrant.
Answer:

ANMOL STEEL INDUSTRIES LIMITED
Registered Office : 30, Anmol Niwas, J. M. Road, Nariman Point, Mumbai – 400 020.
CIN : L30408 MH 2003 PLC110845

Tel. No.: 022-97675877
Fax No.: 022-30010331
Ref. No.: A/MR-D/7/19-20

Website: www.anmolindustrieslimited.com
Email: [email protected]
Date: 7th May, 2019

Mrs. Jyoti Surti 12, Laxmi Niwas,
Amrapali Marg, Bandra,
Mumbai – 400 050.

Sub.: Payment of Dividend on Equity Shares
(Equity Shares of ₹ 10 each at par)

Dear Madam,
As per the instructions issued by the Board of Directors it is being conveyed to you that in the, Final Dividend @ ₹ 2.5 per equity share of ₹ 10/- each has been approved by the members for the year ending 31st March, 2019 in the 31st Annual General Meeting held on 20th April, 2019.

Your company has complied with all the statutory provisions (Sec. 123 of the Companies Act. 2013) relating to declaration of dividend. Details of dividend payable to you are as follows:

The ‘Dividend Warrant’ is attached herewith. Please detach the ‘Dividend Warrant’ along the perforated line.
Thanking you,

Yours faithfully,
For Anmol Steel Industries Limited.

Sign
Secretary

Encl.: Dividend Warrant

Question 4.
Write a letter to the member for the payment of Interim dividend electronically.
Answer:

GURUSAI AUTO LIMITED
Registered Office: 31, Tulsi Complex, Lodhi Road, Camp, Pune – 411 001.
CIN : L40103 MH 1999 PLC300477

Tel. No.: 020-24032844
Fax No.: 020-24356101
Ref. No.: S/MR-D/12/19-20

Website: www.gurusailimited.com
Email: [email protected]
Date: 3rd June, 2019

Mr. Jay ant Modi
15, Sagar Apartment,
Van Vihar Road,
Pune-411 030.

Sub.: Payment of Interim Dividend through Electronic Clearing Service (ECS), Direct Credit/NEFT

Dear Sir,

We are pleased to inform you that the Board of Directors of Gurusai Auto Limited in its meeting held on Thursday, 28th May 2019 has declared Interim Dividend @ ₹ 1/- (i.e. 10%) per equity share of face value of ₹ 10/- each.

As per the instructions given by you (either in person or through Depository Participant), we have remitted the amount of the Interim Dividend to your Banker for crediting your Bank Account, for electronic transfer. Your company has complied with all the provisions relating to declaration and payment of dividend.

Details of Dividend payable to you are given below:

Please verify the credit of amount in your Pass Book/Statement of accounts.
As per the provisions of the Income Tax Act, 1961 no tax is required to be deducted at source in respect of Dividend payment, but dividend Distribution Tax has been paid by the Company.
Thanking you,

Yours faithfully,
For Gurusai Auto Limited.

Sign
(Mr. Jitesh M. Gandhi)
Company Secretary

Question 5.
Draft a reply letter resolving the query of the member on low rate of dividend.
Answer:

SHREE CEMENT INDUSTRIES LIMITED
Registered Office : 31, Tulsi Tower, Bandra (East), Mumbai – 400 050
CIN : L50307 MH 2000 PLC160699

Tel. No.: 022-24245025
Fax No.: 022-45456035
Ref. No.: S/MR-D/25/19-20

Website: www.shreecementindustriesltd.com
Email: [email protected]
Date: 20th April, 2019

Ms. Kishor Malpani
15/21, Lotus Apt.,
Borivali (W),
Mumbai – 400 103.

Sub.: Resolving Query on Low Rate of Dividend made by the Company.

Dear Sir,
This is to inform you that as per your letter dated 15th April, 20191 am, hereby, authorised to resolve your query regarding the low rate of dividend paid by the company to their faithful members. The reasons for low rate of dividend are mentioned below:

1. During the last year, due to the floods, company’s factory situated at Mahim (E) was not in a condition | to operate in a full fledged manner.
2. Due to such unavoidable circumstances of natural disaster company faced huge financial losses.
3. Hence, the Board of Directors has decided to transfer ?12.5 crores to General Reserves which is 50% ; more than the amount transferred to Reserves last year.

Hope you will be satisfied by the above information as provided by the company. We assure you that company will easily come over from such unavoidable circumstances and will deliver/pay/declare much better ! dividend in the coming years.

Thanking you,

Yours faithfully,
For Shree Cement Industries

Sign
(Mr. Suhas Bajaj)
Company Secretary

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 5 Deposits Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 5 Deposits

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
Deposit is a type of ____________
(a) Owned capital
(b) Short term loan
(c) Long term loan
Answer:
(b) Short term loan

Question 2.
Eligible Public Company and Government Company can collect deposits from ____________
(a) It’s employees
(b) Public
(c) RBI
Answer:
(b) Public

Question 3.
A private company can accept deposits from its Member of Directors up to not more than ____________ % of its aggregate of paid-up share capital and free reserves.
(a) 100
(b) 35
(c) 25
Answer:
(a) 100

Question 4.
A ____________ Company can accept deposits from the public not exceeding 35% of its paid-up share capital and free reserves.
(a) Government
(b) Private
(c) Eligible Public
Answer:
(a) Government

Question 5.
Deposits can be accepted for a minimum of 6 months and maximum for ____________ months.
(a) 36
(b) 3
(c) 30
Answer:
(a) 36

Question 6.
Company issues ____________ to invite its members to subscribe for its deposit scheme.
(a) Advertisement
(b) Circular
(c) Newspaper
Answer:
(b) Circular

Question 7.
The company can issue a circular or advertisement for inviting deposits after ____________ days of filing it with the Registrar of Companies.
(a) 30
(b) 21
(c) 7
Answer:
(a) 30

Question 8.
Company has to appoint ____________ to protect the interest of depositors.
(a) Debenture Trustees
(b) Deposit Trustees
(c) Credit Rating Agency
Answer:
(a) Deposit Trustees

Question 9.
Charge on assets is to be created when a company issues ____________
(a) Unsecured deposit
(b) Unsecured Debenture
(c) Secured deposit
Answer:
(c) Secured deposit

Question 10.
Deposit Receipt is issued within ____________ days of receipt of deposit.
(a) 7
(b) 30
(c) 21
Answer:
(c) 21

Question 11.
For premature repayment of deposit, company deducts ____________ % of interest.
(a) 1
(b) 18
(c) 20
Answer:
(a) 1

Question 12.
Return of deposit must be filed every year on or before ____________
(a) 30 June
(b) 31 March
(c) 30 April
Answer:
(a) 30 June

1B. Match the pairs.

Question 1.

Answer:

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
A company that can accept deposits from its members, directors, or their relatives not exceeding 100% of the aggregate of paid-up share capital and free reserves.
Answer:
Private Company

Question 2.
The company can accept deposits from the public up to 35% of its paid-up share capital and free reserves.
Answer:
Government Company

Question 3.
Minimum tenure of a deposit.
Answer:
6 months

Question 4.
The maximum tenure of the deposit.
Answer:
36 months

Question 5.
Period within which a company has to create a charge on its tangible assets.
Answer:
30 days of Acceptance

Question 6.
Document issued by a company to invite its members to subscribe for its Deposits.
Answer:
Circular

Question 7.
Agreement between the company and Deposit Trustee.
Answer:
Deposit Trust Deed

Question 8.
The account can be used only for repaying deposits.
Answer:
Deposit Repayment Reserve Account

Question 9.
Time within which company has to issue deposit Receipt.
Answer:
21 days

Question 10.
Book which contains details of deposits accepted or renewed.
Answer:
Register of Deposits

1D. State whether the following statements are true or false.

Question 1.
Return of deposit must be filed every year on or before 31 March.
Answer:
False

Question 2.
An eligible public company can collect deposits from its members.
Answer:
True

Question 3.
A government company can collect deposits from its members.
Answer:
False

Question 4.
A private company can collect deposits from the public.
Answer:
False

Question 5.
The deposit can be accepted for a maximum of 36 months.
Answer:
True

Question 6.
An eligible public company can collect deposits from the public not exceeding 35% of its paid-up share capital and free reserves.
Answer:
False

Question 7.
For secured deposits, the company has to create a charge on its tangible assets.
Answer:
True

Question 8.
Deposit Receipt is issued within 21 days of receipt of deposits.
Answer:
True

Question 9.
Company appoints Credit Rating Agency to protect the interest of depositors.
Answer:
False

Question 10.
Deposit Trust Deed is an agreement between the company and Deposit Trustee.
Answer:
True

1E. Find the odd one.

Question 1.
Private Company, Eligible Public Company, Government Company.
Answer:
Private company

Question 2.
Deposit Trustee, Deposit Trust Deed, Special Resolution.+
Answer:
Special Resolution

Question 3.
Appointment of Deposit Trustee, Appointment of Registrar of companies, Appointment of Credit Rating Agency.
Answer:
Appointment of Registrar of companies

1F. Complete the sentences.

Question 1.
Deposit is a type of ____________ term loan.
Answer:
Short term loan

Question 2.
Eligible Public company and Government Company can accept deposits from ____________
Answer:
Public

Question 3.
To collect deposits from the public, Eligible public company must have a net worth of not less than ₹ ____________
Answer:
₹ 100 Crores

Question 4.
A Government company can accept deposits from public not exceeding ____________
Answer:
35% of the paid-up share capital and free reserves of the company

Question 5.
Deposits can be accepted or renewed for a period not less 6 months and not more than ____________
Answer:
36 months

Question 6.
Company cannot accept or renew deposits repayable on ____________
Answer:
Demand

Question 7.
Premature repayment of deposits can be done by a company but not before ____________
Answer:
3 months

Question 8.
To invite the public to subscribe for its deposits, a company issues ____________
Answer:
Advertisement

Question 9.
Agency which gives ratings of the deposits of a company is called ____________
Answer:
Credit rating agency

Question 10.
Account which is used only for repaying deposits is called ____________
Answer:
Deposit Repayment Reserve Account

1G. Select the correct option from the bracket.

Question 1.

(File on or before 30 June, Private Company, Secured deposits, Deposits from public, Maximum tenure of deposits)
Answer:

1H. Answer in one sentence.

Question 1.
Which companies can accept deposits from the public?
Answer:
Government Companies and Eligible Public companies can accept deposits from the public.

Question 2.
What is the maximum deposit the Government company can collect?
Answer:
Government companies can accept deposits from the public not exceeding 35% of the paid-up share capital and free reserves of the company.

Question 3.
What is the tenure of a deposit?
Answer:
A company can accept deposits for a minimum of 6 months and a maximum of 36 months.

Question 4.
Who are Deposit Trustees?
Answer:
Eligible companies and public companies have to appoint one or more Deposit Trustees to protect the interest of the depositor, in case a company defaults in repaying the depositors.

Question 5.
What is Deposit Trust Deed?
Answer:
Company signs a contract with the Deposit Trustees called as Trust Deed which contains the terms and conditions of the contract.

Question 6.
When does a company create a charge on its tangible assets?
Answer:
A Company accepting secured deposits from the public has to create a charge on its tangible assets.

Question 7.
Within what period should a company issue a Deposit Receipt?
Answer:
The company has to issue a Deposit Receipt to the depositors within twenty-one (21) days from the date of receipt of money or realization of cheque.

Question 8.
When should a company file Return of Deposit?
Answer:
A company has to file a Return of Deposit on or before 30 June every year with the Registrar of Companies.

Question 9.
What is Deposit Repayment Reserve Account?
Answer:
Every company accepting deposits has to open a Deposit Repayment Reserve Account in a scheduled Bank which can be used only for repaying deposits.

Question 10.
What is the Register of Deposit?
Answer:
A company has to maintain a separate Register for deposits accepted or renewed at its registered office which is called as Register of Deposits.

1I. Correct the underlined word/s and rewrite the following sentences.

Question 1.
Government companies can accept deposits from members.
Answer:
Government companies can accept deposits from the public.

Question 2.
Company issues advertisement to invite its members for subscribing to its deposits.
Answer:
Company issues are circular to invite its members for subscribing to its deposits.

Question 3.
Company appoints Credit Rating Agency to protect the interest of Depositors.
Answer:
Company appoints Deposit Trustees to protect the interest of Depositors.

Question 4.
Deposit Receipt is issued within 7 days from the date of receipt of deposits.
Answer:
Deposit Receipt is issued within 21 days from the date of receipt of deposits.

Question 5.
Register of deposits is to be filed with the Registrar of companies on or before 30th June every year.
Answer:
Return of deposits is to be filed with the Registrar of companies on or before 30th June every year.

Question 6.
Charge on assets is created when a company issues unsecured deposits.
Answer:
Charge on assets is created when the company issues secured deposits.

Question 7.
The minimum tenure of the deposit is 36 months.
Answer:
The minimum tenure of the deposit is 6 months.

1J. Arrange in proper order.

Question 1.
Appoint Deposit Trustee, Hold General Meeting, Create charge on assets.
Answer:
Hold General Meeting, Appoint Deposit Trustee, Create charge on assets.

Question 2.
File Return of deposit, Issue Deposit Receipt, Issue advertisement.
Answer:
Issue advertisement, Issue Deposit Receipt, File Return of deposit.

Question 3.
Obtain Credit Rating, Entries in Register of Deposits, Issue Deposit Receipt.
Answer:
Obtain Credit Rating, Issue Deposit Receipt, Entries in Register of Deposits.

2. Explain the following terms/concepts:

Question 1.
Eligible Public Company
Answer:
These companies can accept deposits from their members and also from the public.
Eligible public company means a company having:

• A net worth, not less than ₹ 100 crores or
• Turnover not less than ₹ 500 crores and which has obtained prior approval of its shareholders through special resolution for accepting public deposits.

Question 2.
Tenure of Deposit
Answer:

• Tenure of the deposit is the term or period of deposit.
• A company can accept deposits for a period of six months or more than thirty-six months.
• In certain circumstances, a company may accept deposits repayable earlier than six months to meet its short-term needs.
  Premature repayment is made after 3 months.

Question 3.
Secured Deposit
Answer:

• Secured deposits are those deposits against which a charge is created within 30 days of the issue.
• A company can accept secured or unsecured deposits which should be clearly mentioned in the circular or advertisement inviting deposits.

Question 4.
Deposit Trustee
Answer:

• Deposit Trustee acts as a link between the company and deposit holder.
• Eligible companies and public companies issuing secured deposits appoint one or more Deposit Trustees.
• The Trustees protect the interest of the depositor in case a company defaults in repaying the depositors.

Question 5.
Charge on tangible assets
Answer:

• A Company accepting a secured deposit from the public, within thirty days of acceptance, has to create a charge on its tangible assets for an amount not less than the amount of deposit accepted.
• It means keeping tangible assets as security for the secured deposit hold.

Question 6.
Deposit Insurance
Answer:

• Deposit Insurance is a protection cover for deposit holders.
• It is to be taken at least 30 days before the issue of circular or advertisement.
• If the amount of deposit plus interest on it is up to ₹ 20,000, insurance is to be taken.

Question 7.
Deposit Repayment Reserve Account
Answer:

• DRRA is an account opened in a scheduled bank for repaying the deposit amount.
• Every company has to open DRRA that accepts deposits.
• Every year, on or before 30 April, the company has to deposit an amount not less than 15% of the number of deposits maturing during the current year and following financial year.

Question 8.
Credit Rating
Answer:

• Credit rating is an estimate of the ability of the organization to fulfill its financial commitments.
• Every company has to get a credit rating of its deposits through a Credit Rating Agency.
• The Credit Rating Agency considers the net worth of the company, liquidity position, ability to repay deposits on time, etc., and accordingly gives a rating.
• The rating shall be obtained every year during the tenure of the deposits.

Question 9.
Deposit Receipt
Answer:

• A deposit Receipt is issued by the company to depositors.
• Deposit Receipt is issued within twenty-one (21) days from the date of receipt of money or realization of cheque.
• The receipt has to be signed by the officer duly authorized by the Board of Directors.
• The Receipt contains the name and address of the depositor, amount of deposit, rate of interest payable, and date on which it is repayable.

Question 10.
Return of Deposit
Answer:

• A company has to file a Return of Deposit, on or before 30 June every year, with the Registrar of Companies.
• The Return gives details of deposit with the company as of 31 March of that year.

3. Study the following case/situation and express your opinion.

1. Apple Company Ltd. plans to raise funds through Public Deposits. Its net worth is ₹ 10 Crores.

Question (a).
Can they accept deposits from the public?
Answer:
No, the company cannot accept deposits from the public as its net worth is less than ₹ 100 crores.

Question (b).
Can they accept deposits that mature after 4 years?
Answer:
No, the deposit can be accepted or renewed which mature after four years.

Question (c).
Within what period should the company issue deposit Receipts to its depositors?
Answer:
The company has to issue a Deposit Receipt to the depositors within twenty-one (21) days from the date of receipt of money or realization of the cheque.

2. ABC Company Ltd. is an Eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits.

Question (a).
Can the company accept deposits in joint names?
Answer:
Yes, the company can accept deposits in joint names of depositors. But there should not be more than 3 names.

Question (b).
Can the company accept deposits from it’s members?
Answer:
Yes, the company can accept fresh deposits only if the amount of such deposits together with the previous deposits does not exceed 10% of the aggregate of paid-up share capital and free reserves.

Question (c).
Can the company issue secure deposits?
Answer:
Yes, the company can issue a secured deposit only if it is clear which should be clearly mentioned in the circular or advertisement inviting deposits.

3. Apple Company Ltd. is an Eligible Public Company. It plans to raise secured deposits from the public. Please advise its Board on the following.

Question (a).
Does the company need to get shareholders’ approval for accepting deposits?
Answer:
Yes, the company has to seek the shareholder’s approval for accepting deposits by passing a special resolution.

Question (b).
Does the company have to appoint a Deposit Trustee?
Answer:
Yes, the company has to appoint a Deposit Trustee as it is issuing secured deposits.

Question (c).
Within what period should the company create a charge on it’s assets?
Answer:
A Company can create a charge on its tangible assets within 30 days of acceptance.

4. SUN Pvt. Ltd. company wants to raise funds through deposits.

Question (a).
Can the company accept deposits from the public?
Answer:
No, it cannot accept deposits from the public because it is a private company.

Question (b).
Which document should the company issue to invite deposits?
Answer:
A Private Ltd. Company can issue circulars to invite deposits.

Question (c).
What is the maximum period for which they can accept deposits?
Answer:
The maximum period for accepting deposits is 36 months.

4. Answer in brief.

Question 1.
State the number of deposits that different types of companies can collect by way of deposits.
Answer:
Deposits are a source of short-term funds for the company. Deposits can be accepted by the company by the public, directors, or its members. It is a loan taken by the company and there are various terms and conditions that a company needs to follow to accept them.

The amount of deposits that different types of companies can collect by way of deposits is as follows:
Amount of Deposit:
a) Private Company: A Private Company can accept deposits from its members or Directors or Relatives of Directors not more than 100 percent of its aggregate of paid-up share capital and free reserves.

However, a certain class of Private Companies as specified by the Companies Act can accept deposits of more than 100 percent of its aggregate of paid-up share capital and free reserves.

b) Public Company (other than Eligible Company): These Companies cannot accept fresh deposits from members if the amount of such deposits together with the previous deposits exceeds 25% of the aggregate of the paid-up share capital and free reserves of the company.

c) Eligible Public Company:
An ‘Eligible Company’, i.e. company eligible to accept deposits from the public under section 76(1) of Companies Act, 2013, can accept deposits up to 25% of paid-up capital, free reserves, and securities premium account from the ic.

In addition, it can accept deposits up to 10% of the gate of paid-up share capital, free reserves, and securities premium account from members Rule 3(4) of Companies (Acceptance of Deposits) Rules, 2014.

(d) Government Company:
A Government company is eligible to accept deposits under section 76 of the Companies Act, 2013.
It can accept deposits up to 35% of paid-up capital, free reserves, and securities premium account From the ic.

Question 2.
State the contents of Circular or Advertisement for Deposit.
Answer:
Circular or Advertisement:

• If a company invites deposits from its members, it issues a circular.
• If a company invites deposits from the public, it issues an advertisement.

Contents of circular or advertisement:

• Statement about the financial position of the company.
• The portion of secured and unsecured deposit of fresh issue.
• Credit rating obtained from a Credit Rating Agency (only for eligible public companies).
• Details of the scheme.
• Name of Deposit Trustees.
• Amount due towards deposits of any previous deposits accepted by the company.

Question 3.
State the provisions regarding the appointment of Deposit Trustee.
Answer:
Appointment of Deposit Trustee:

• Eligible companies and public companies appoint one or more Deposit Trustees while issuing secured deposits.
• They protect the interest of the depositor, in case a company defaults in repaying the deposit amount and interest.
• Company signs a contract with the Deposit Trustees called as Trust Deed.
• It contains the terms and conditions of the contract.
• The deed has to be signed at least 7 days before issuing the circular or advertisement.
• The Deposit Trustee on his own or on the request of one-tenth of depositors can call a meeting of all depositors when a company defaults in repaying deposits.

Question 4.
State any four terms and conditions regarding the acceptance of the Deposit.
Answer:
(i) Period/Tenure of Deposit:

• The tenure of deposit should be more than six months but less than thirty-six months.
• Under certain circumstances only, the company can accept deposits for 3 months.
• The company can make premature repayment of deposits after a minimum of 3 months.

(ii) No demand deposit:
The company cannot accept or renew deposits repayable on demand.

(iii) Secured or Unsecured Deposit:

• A company can accept secured or unsecured deposit if it is mentioned in the circular or advertisement.
• A company offering secured deposits has the right to create a charge on its tangible assets within 30 days of acceptance of deposits.

(iv) Application Form:

• A prescribed application form is to be filled by the applicant.
• This application form is given by the company.
• It includes a declaration made by the applicant that the deposit he is making is not borrowed from any person.

(v) Joint names:
The company can accept deposits in joint names of depositors. But there should not be more than three names.

5. Justify the following statements.

Question 1.
All companies cannot accept deposits from the public.
Answer:

• Accepting deposits from the public is an important source of raising funds for a company.
• The company needs to follow certain terms and conditions while collecting deposits from the public.
• Similarly, on the other side, provisions issued by the Central Government, Companies Rules 2014, and directives issued by the Reserve Bank of India do not allow companies to accept deposits.
• Banking companies, Non-Banking Finance Companies, Housing Finance companies are not allowed to accept deposits.
  Thus, it is rightly said, that all companies cannot accept deposits from the public.

Question 2.
There is a limit or restriction on the amount that a company can collect as Deposits.
Answer:

• There are different types of companies that can accept deposits from the public as well as members.
• A private company can accept deposits from the public of more than 100% of their aggregate of paid-up share capital and free reserves.
• Eligible Public Company and Public Company cannot accept deposits from the public exceeding 25% of the aggregate paid-up share capital and free reserves of the company.
• Government company can accept deposits up to 35% of the paid-up share capital and free reserves. Thus, we can conclude that there is a limit or restriction on the amount that a company can collect as Deposits and the statement stands justified.

Question 3.
The company has to fulfill certain provisions related to the issue of circular or advertisement.
Answer:

• The company has to file a copy of the circular or advertisement with the Registrar of Companies before inviting the public.
• Circular or advertisement should be issued to the public after 30 days of filing.
• It should be signed by all directors of the company.
• Circular is sent to the members by the speed post, registered post, or email.
• Thus, it is rightly said that a company has to fulfill certain provisions related to the issue of circular or advertisement.

Question 4.
While issuing secured deposits, the company has to appoint a Deposit Trustee.
Answer:

• When issuing secured deposits, eligible companies and public companies have to appoint one or more Deposit Trustees.
• The Trustees protect the interest of the depositor in case a company defaults in repaying the depositors.
• Company signs a contract with the Deposit Trustees called as Trust Deed.
• It contains the terms and conditions of the contract.
• The deed has to be signed at least 7 days before issuing the circular or advertisement.
• The Deposit Trustee on its own or on the request of one-tenth of depositors can call a meeting of all depositors when a company defaults in repaying deposits.
• Thus, the statement, while issuing secured deposits, the company has to appoint a Deposit Trustee is fully justified.

Question 5.
Companies have to create a charge on their tangible assets while issuing secured deposits.
Answer:

• A Company accepting a secured deposit from the public, within thirty days of acceptance, has to create a charge on its tangible assets for an amount not less than the amount of deposit accepted.
• The chargeable asset amount should not be less than the amount of deposit accepted.
• The minimum amount of security should be equal to the amount not covered by Deposit Insurance.
• The Security is created in favour of the Deposit trustees.
• Creating a charge on the assets ensures safety to the deposits of deposit holders.
• In case a company fails to repay the number of deposits, the deposit holders can sell the assets and recover the amount invested.
• Thus, it is rightly justified that the companies have to create a charge on their tangible assets while issuing secured deposits.

Question 6.
The company issuing deposit must open Deposit Repayment Reserve Account.
Answer:

• Every company accepting deposits has to open a Deposit Repayment Reserve Account in a Scheduled Bank.
• These banks satisfy certain criteria laid by RBI and enjoy certain facilities of RBI.
• Every year, on or before 30 April, the company has to deposit an amount not less than 15% of the number of deposits maturing during the current year and following financial year.
• This account can be used only for repaying deposits.
• Thus, it is rightly justified that, a company issuing deposit must open Deposit Repayment Reserve Account.

6. Answer the following questions.

Question 1.
Explain the type of companies that can raise deposits along with the maximum amount they can raise as deposits.
Answer:
The company can accept deposits from both public and private companies. This acceptance of deposits by companies are further classified into:

(i) Private Company:

• A private company can accept deposits from
  • Member or Directors or Relatives of Directors.
  • The certain class specified by Companies Act.
• They can accept deposits up to 100% of its aggregate of paid-up Share Capital.

(ii) Public Company (other than an eligible company):

• Public companies (other than eligible companies) accept deposits from members.
• They cannot accept fresh deposits if the previous deposits combined exceed 25% of the aggregate of the paid-up Share Capital and Free Reserves of the company.

(iii) Eligible Public Company:

• Eligible Public Company can accept deposits from Members and Public
• Eligible Public Company can accept fresh deposits only if the previous deposits combined do not exceed 10% of the aggregate of paid-up share capital and free reserves.
• Eligible Public Company can accept fresh deposits only if the previous deposits combined do not exceed 25% of the aggregate of paid-up share capital and free reserves.

(iv) Government Company:

• Government companies can accept deposits from the public.
• These deposits can be accepted not exceeding 35% of the paid-up share capital and free reserves.

Question 2.
Explain the provisions related to circular or advertisement for inviting deposits.
Answer:
A circular is issued when the company invites deposits from its members. An advertisement is issued when the company invites deposits from the public.
(a) Contents of Circular or Advertisement:

• Statement showing the financial position of the company
• The portion of secured and unsecured deposit of fresh issue
• Credit rating obtained from a Credit Rating Agency (only for eligible public companies)
• Details of the scheme
• Name of Deposit Trustees
• Amount due towards deposits of any previous deposits accepted by the company.

(b) Filing of Circular or Advertisement with Registrar of Companies:
A company has to file a copy of a circular or advertisement signed by all directors with the Registrar of Companies.

(c) Issue of Circular or Advertisement:

• The company must file a copy of the circular or advertisement with the Registrar of the Company.
• The filing of circular or advertisement must be done within 30 days.
• Only after filing the circular or advertisement, the company can issue it to the public.
• The advertisement must be published in an English newspaper and in the regional language newspaper where the company’s registered office is located.
• The company can send the circular to the members through registered post, speed post, or email.

(d) Validity of Circular or Advertisement:
The validity of circular or advertisement is valid for 6 months from the end of the financial year in which it was issued or the date on which the Annual General Meeting was held, whichever is earlier.

Balbharti Yuvakbharati English 11th Digest Chapter 1.4 Pillars of Democracy Notes, Textbook Exercise Important Questions and Answers.

Maharashtra State Board Class 11 English Yuvakbharati Solutions Chapter 1.4 Pillars of Democracy

11th English Digest Chapter 1.4 Pillars of Democracy Textbook Questions and Answers

1. Discuss with your partner and choose the correct alternative.

Question (i)
‘Government of the people, by the people and for the people, shall not perish from the earth’. This famous statement is made by –
(a) Mahatma Gandhi
(b) Nelson Mandela
(c) Abraham Lincoln
(d) Dalai Lama
Answer:
Abraham Lincoln

Question (ii)
A system where the government is elected and ruled by people is called —
(a) Bureaucracy
(b) Aristocracy
(c) Democracy
(d) Autocracy
Answer:
Democracy

Question (iii)
A democratic country is governed by, its –
(a) Military
(b) Police
(c) Politicians
(d) Constitution
Answer:
Constitution

2.

Question (i)
The trinity of democracy comprises of three principles. Complete the web to show the trinity of democracy.

Answer:

Question (ii)
Match the following.

Answer:

Question (iii)
Explain the pillars of a democratic nation. Make list of obstacles that are a threat to the progress of a nation.
Answer:
The pillars of a democratic nation are:
1. Legislative: In a democratic nation, the people of the country elect their representatives that govern a state or a country.
2. Executives: Executives, as the name suggests, are in-charge of putting the laws made by the legislatives in effect.
3. Judiciary: The job of the judiciary is to keep a check on the laws made by the legislative and their execution or fulfillment by the executives without disturbing the fundamental rights of the citizens of the country.
4. Press: All types of media have a responsibility of reaching to the people all over the country, the works of the legislatives and the executive and their basic duty is to be unbiased.

Major obstacles that are threats to the progress of a nation are:

1. Caste and religion-based politics.
2. Disrespect for the constitution values.
3. Absence of universal education which makes people unaware of their basic rights and duties.
4. Huge gap between haves and have-nots- lack of qualitative resources to the poor.
5. Constant threat of the attack of enemy countries.

(A1)

Question (i)
State weather the following statements are true or false. Correct the false statement.

1. There is nothing wrong in being grateful to great men.
2. Hero-worship leads to dictatorship.
3. Liberty cannot be divorced from equality.
4. One man one vote and one vote one value.
5. Fraternity means common sense.

Answer:

1. True
2. True
3. True
4. True
5. False.

Fraternity means a sense of common brotherhood The correct statement is – Fraternity means a sense of common brotherhood.

Question (ii)
Complete the web with information from the speech of Dr. B.R. Ambedkar.

Answer:

(A2)

Question (i)
Dr. Babasaheb Ambedkar has cited the quotes by John Stuart Mill and Daniel O’Connell. Write down 4 to 5 lines for each of them.
Answer:
(i) John Stuart Mill was an English philosopher and economist who was considered to be the most powerful British thinker of the 19th Century. Mill’s philosophy concentrates on establishing standards for the relationship between authority and liberty. It also advocates freedom of speech, freedom to pursue taste as long as they do not harm others and the freedom to unite without being forced and harming anybody. Dr. Babasaheb Ambedkar agreed with Stuart Mill’s views on social liberty where people should have the right to have a say in the governments decision.

(ii) Daniel O’Connell who was often referred to as ‘The Liberator’ was an Irish political leader in the first half of the 19th Century. His philosophy has inspired leaders all over the world including Mahatma Gandhi and Martin Luther King. He advocated mass political participation and was very much against idealizing somebody at the cost of ones own honour, chastity or liberty. Dr. Babasaheb Ambedkar felt that this Principle of Refraining from hero-worship propagated by Daniel O’Connell is badly needed in India and he agreed with Daniel who felt such kind of loyalty was actually slavery.

Question (ii)
Make a list of steps that you feel are essential to unite the people of different caste, religions and languages in India.
Answer:
India is a progressive nation but the directions of dividing India according to caste, religions and languages have still kept her handicapped. The possible remedies, I feel, to cure India from these diseases to make her stable and secure may be:
(i) Education for all irrespective of not only caste, creed, religion but also of gender.
(ii) Creation of job opportunities according to one’s abilities.
(iii) Provision for reservation to depend on the financial condition rather than caste or religion.
(iv) Creation of public welfare policies according to the need of the people of all communities and thus maintaining uniformity as well as equality in all matters.

(iii) Write your views/opinion in brief on the following topics.

Question (a)
We must always cast our vote.
Answer:
Voting is one of the fundamental duties of the citizen of a country. We have no right to criticize the works of the government if we abstain from voting which gives us a chance to choose suitable representative to govern the country. Our constitution has given the common man an important power and responsibility to select the right persons to take the country forward on the right path. We are supposed to discharge this duty judiciously.

Question (b)
Liberty, equality and fraternity lead to an ideal nation.
Answer:
The terms ‘Liberty, Equality, Fraternity’ were the mottos of French revolution. Liberty represents freedom and Indian constitution has specified various kinds of freedom for Indian citizens. Euqality stands for having equal law for all irrespective of caste, creed, gender or religion. Fraternity is associated with brotherhood among all communities of people sharing common interest and purpose. An ideal nation is recognized by the maintenance of an atmosphere of peace in all spheres of life. If the principles of liberty, equality and fraternity are followed responsibly by the people of the country as well as the leaders governing them, the prosperity of the nation is assured.

Question (c)
Steps to be taken to eradicate inequality.
Answer:
Inequality is a curse that can lead any nation to its doom. Inequality creates dissatisfaction and unrest among people who feel deprived. Some possible steps to eradicate inequality can be:
(a) Remove poverty by reducing unequal distribution of resources and equal access to the opportunities as far as possible.

(b) Advocate gender equality by preventing female foeticide and making provision for girls’ education and preventing early marriage.

(c) Investing in employment-oriented education for all, creating employment readiness among youth and institutions for skill development need to be encouraged.

(d) Ensuring that all groups and communities can express their voice without fear. But the groups and communities also need to be responsible to avoid loss of lives, damage of public properties while expressing their grievances.

(e) Strictly eliminate caste discrimination which is still pervasive and is causing a serious threat to the progress of the country. To make the above steps successful is the joint responsibility of the government and the people of the country.

Question (d)
Role of youth in creating awareness.
Answer:
Youths are the backbones of the society and that gives them the responsibility to act as catalysts for creating social awareness. Empowerment of the youth is one of the ways to fulfill the policies of good governance.

The social welfare units in the schools and colleges, NCC, NSS, etc., should be made more active and need to be made a part and parcel of the curriculum so that a large number of young minds are materialized to eradicate social evils like illiteracy, insanitation, superstitions, corruption. They can organize various cultural programmes like street plays, musical programmes with social messages, posters as well as powerpoint presentations.

They can set examples by fighting against various kinds of pollution with steps like quitting smoking, propagating against loud music, cleanliness, saving water. “Charity begins at home” thus, they need to bring about the change in their own habits and behaviour to create social awareness.

(A3)

Question (i)
Complete the following table.
Answer:

2. Homograph: Homograph is a word spelt and pronounced like another word but with a different meaning.

(A4)

(i) Frame Wh-question to get the underlined parts of the following sentences as answers.

Question (a)
In politics we will be recognizing the principle of ‘one man one vote’ and ‘one vote one value’.
Answer:
Which principles will we be recognizing in politics?

Question (b)
The politically minded Indians preferred the expression ‘the Indian Nation’.
Answer:
Which expression did the politically-minded Indians prefer?

Question (c)
Fraternity means a sense of common brotherhood of all Indians.
Answer:
What does fraternity mean?

(A5)

Write speeches on the following topics.

Question 1.
Duties of an Ideal Citizen.
Answer:
Respected chief guest Dr. Ashok Pillai, our Principal Dr. Pradeep Sanghvi, teachers and my dear friends,

Good Evening ! I am Mayank Gala, a member of the NSS unit of our college. It is indeed a matter of pride for me to share my views on the topic ‘Duties of an Ideal Citizen.’ in front of an august gathering. ‘Duties of an ideal citizen’ according to me, has become a necessity for everyone to be aware of in the present situation of our country.

The first question that comes to my mind at this moment is “Who is an ideal citizen?” Is it a person who is honest, knows his responsibilities and values, respects others needs, is conscious of taking care of the environment and thus contributing to the society in general making it a better place to stay? , Yes, an ideal citizen ideally should have all these qualities.

I personally feel that an ideal citizen should not consider his duties as obligations and fulfill them on his own urge. If all of us make a sincere effort to carry on with our jobs, the society is bound to prosper. Since we all are members of the society, to make it exemplary is our duty. We need to remember this at every step we take in our lives and things will fall into their own places.

Here, I can give some examples which all of us can do easily. I know that there are big words like trustworthiness, honesty, courtesy, respecting the rights of others as well as laws, and these are the personal traits of an ideal citizen. But I want to give you a simple list of things which all of us can follow easily.

My list begins with a simple task of not littering the environment, followed by, conserving water, encouraging greenery in our housing societies, wearing helmets and also encouraging our pillons to wear one, maintaining dignity of all the communities and last but not the least, paying taxes on time.

Of course, the list will be longer than this. But “well begun is half done”. And the most important things, I remind all of us again that the “charity begins at home” So, let’s start!

I thank the organizers to give me an opportunity to talk to all of you. I am also grateful to each and every person in the audience for their patient hearing. I am convinced that we can fullfill our dreams of having an ideal society.

Thank you !

Question 2.
Merits of Democracy
Answer:
Respected judges and my dear friends,
I am Sandeep Agarwal wishing all of you a very good afternoon.

Today, I am going to talk on ‘Merits of Democracy’ I am sure, we all remember the definition Abraham Lincoln gave of democracy that it is “Government of the people, for the people and by the people”. In short, I can say that democracy is rule of the people.

So, what can be the merits of the rule of the people? The first merit that immediately comes to my mind is that recognizes the strength of people’s will which is expressed through their elected representatives sitting in the Parliament.

A true democracy limits the power of these representatives and they have to strictly follow the constitution which again cannot be altered or amended except through right procedural process. This is, I feel, the merit of democracy, where every effort is made to prevent the accumulation of power in the hands of any particular individual.

This leads us to the fact that the foremost demand of democracy is free and fair election. Every voter not only has access to the voting machine but secrecy of his vote has to be strictly maintained. Liberty, equality, fraternity are the three pillars of a good democracy and in a proper democratic situation it must be followed religiously.

Unless these principles are sincerely maintained, how will people who are an integral part of democracy, get assurance of safety, security as well as courage to express their views/ problems freely? Here comes the win of democracy over dictatorship where people do not have freedom of speech.

The role of unbiased press and then freedom of expression are urgent necessities so that they can reach a large number of people’s opinion to the government to judge the pros and cons of their decisions. The Parliament proceedings should be open to the public so that they can see how their elected representatives are behaving. In a true democracy, the people have the power of rejecting their representatives and that is their best safeguard.

But, I am sure you will all agree with me that no electoral system can be fool-proof and perfect democracy can be found in the utopia of poets and dreamers. We have to be satisfied with the nearest maintenance of the sanctity of democracy. Democracy is an evolutionary process. So, it is not wrong on our part to expect the scope for modification and change in the light of experience.

In conclusion, I request all of you to keep your hopes and expectations alive not only to have a true democracy in our country but to maintain its merits also. I thank our Cultural Forum team for giving me the opportunity to speak in front of an august audience. Thank you for your patient hearing !

Question 3.
Advantages of Education
Answer:
Respected judges and my dear friends,

Good afternoon! I am Deepak Shah and my topic for today’s elocution competition is ‘Advantages of Education’.

As I was thinking about the topic, two immediate questions that came to mind are, “How and when does education begin? Does it start when a child goes to school or learn alphabet? Looking around, I get a strong ’NO’ as answer. I believe, education begins with the Mother’s encouraging work, father’s words of praise and approval, sibling’s sympathy, help and sometimes fights even, with the gathering of flowers from the garden, with the chirping of the birds and last but not the least in the company of friends. Thus, the child learns to feel, observe, receive and remember as his mind opens out.

The ultimate aim of education, I know, everyone will agree, is to develop all the faculties of a person- physical, mental or moral. Education needs to help a person to be true to his own self as Shakespeare said, “To thy own self, be true.” Book-bound education limits a person. Rabindranath Tagore showed us the way at Shantiniketan how education would make a complete personality.

The true objective of education is to train the mind , to build confidence, to judge the good and bad of the things. I feel, the least advantage of education is to create the right temperament needed at the right time. I must include here the need for physical education since “A sound mind can only exist in a sound body” The harmony among mental, physical and moral learning can only supply the proper benefits of education.

To talk about the advantages of education, standing in front of so many educators, is not a small task. This has been possible because of my teachers who have been facilitators of giving me confidence to go ahead with my aspirations. This has been the advantage of my education, I believe and I salute my teachers for that.

I thank the judges, the Cultural forum team once again and all my dear friends and teachers sitting in the audience for their patient hearing which gave me the courage to present my views.

Question 4.
Equality : A Blessing
Answer:
Respected dignitaries on the dais, our honourable guests, my teachers and my dear friends,

Good afternoon to you all ! I am Deepali Doshi who is fortunate to be selected as one of the speakers to represent our college for the seminar organized by our college on the topic ‘Equality : A Blessing’.

‘Equality : A Blessing’ – one of the topics which is very close to my heart. From my childhood, I have enjoyed the situation of ‘no discrimination’ at home by my parents. I always thought of this as a natural things to happen.

I grew up and faced the big world. I started understanding the value and necessity of equal opportunity in the society. How a person uses that opportunity depends on his/her capabilities and the situations he/she faces in life. Ideally, equality means that all citizens are equal before the law, allowed to exercise the franchise, are entitled to fulfill equal rights and duties prescribed in the constitution. That leads to a levelling process which is definitely a blessing.

I must admit here, equality needs to be maintained at various levels like having social equality, political equality, economic equality and of course equality of opportunity and education. Social equality is an urgency for peaceful co-existence as it refers to the absence of discrimination of caste, creed, colour, clans, groups and classes.

Who can deny the benefits of this? Political equality gives access to all citizens similar political rights. We the people of India have the benefits of Universal Adult Franchise which gives us the right to elect our representatives to run the government the way we deserve it.

Economic equality is a dream-like situation where each citizen is provided equal opportunity to make economic progress. Practically, that seems difficult but a responsible government definitely makes an attempt to fulfill it to a large extent. Equal right to education is the birthright of every citizen. I know, everybody in this hall will say in unison with me, ‘Education is the great equalizer… opening doors of opportunity for all.’

I have tried to talk about various equalities and the ideal situations to provide them. But the toughest job is to make equality, a blessing in real life, though each one of us wishes for it. To make it a reality is the joint responsibility of the government and we, the people.

I enjoyed talking to such an alert and responsible audience. Thank you for all your patient hearing.

Question 5.
Freedom of Speech
Answer:
Respected judges, my teachers and my dear friends,

Good Evening ! I am Pooja Banerji. I am going to talk on ‘Freedom of Speech’.
‘Freedom of speech’ is an oft-quoted expression these days. Everyday wants to enjoy this freedom but in the process, knowingly or may be unknowingly, disturbs the peace in the society.

If freedom of speech is so powerful that it is capable of disturbing the peace in an otherwise stable society, then let me find out the answers to the questions like, “What is freedom of speech and what is the ideal situation to use this freedom?” I am sure, we all are bothered by these questions often because many times, some utterances in the name of freedom of speech, spread like wild fire, making the situations go out of hand.

We know that the constitution of India provides this fundamental right to the general public as well as the media to express their ideas and opinions freely. Like India, this right is provided by some other countries also but with some limitations.

But can’t freedom of speech be used positively? Constructive criticism is always welcome and is also needed to keep a person or the government under check since all activities are closely monitored.

With freedom comes responsibility. This license should not be misused to excite others and invite unwanted problems. When we get to enjoy the rights we need to respect it so that it does not spoil the peace and harmony of the society. These days, a common practice of spreading half-truths has become rampant just to create sensation. This, in the name of freedom of speech, causes serious harm and self-discipline, according to me, is the only remedy.

All good things have their positives and negatives and one should know how the use of them should not become liabilities. I want to conclude with a request to everyone that basic humanity should not be forgotten in the pretext of using the fundamental rights of freedom of speech. I join Tracy Morgan to tell all of you, “We have freedom of speech but you got to watch what you say”.

Thank you all for allowing my freedom of speech and giving it a patient hearing.

Question 6.
Unity in Diversity
Answer:
Respected judges, my teachers and my dear friends,

Good Morning ! I am Gauri Arora and I am fortunate that I have been assigned the job of talking on a topic, ‘Unity in Diversity’.

For the inter-collegiate elocution competition organized by our college. Here I am standing on the podium of a hall which is self-explanatory of ‘Unity in Diversity’. We can see very clearly that people of different religious beliefs, may be caste and creeds, languages, cultures , dresses, and diverse lifestyles as well as eating habits are harmoniously sitting under one roof.

‘Unity in Diversity’ is an expression which is frequently referred to when one talks of India. We, the Indians, are children of one mother, Mother India and that unites us on the principle of brotherhood. I am sure, my friends sitting over there, have ever bothered about caste, religion, social status of the person sitting next to them. That is, in other words, we can call national integration, in the true sense of the term.

India has won its freedom from the British rule of 200 years and the freedom fighters never bothered about their diversities. They all had one mantra in life and that was to free Mother India from the shackles of British rule.

We carry on that tradition after so many years of our independence. India is the land of festivals irrespective of culture, language, rituals, faiths, we are lost in the celebration forgetting completely the existence of our own origin.

One may ask, “How is it possible in the midst of so many diversities?” My answer to such questions will be “Its possible because we respect our togetherness. How can we forget the benefits of safeguarding this unity? It protects our heritage and in the process attracts tourism. The foreigners feel amased with the existence of so many traditions, cuisines, clothings, languages and of course the diverse gifts of Mother Nature.

I feel, the biggest benefit of ‘Unity in Diversity’ is the protection of human rights of all. This gives the citizens confidence of having safety at workplace and automatically encourages healthy teamwork that ultimately leads to progress.

Every coin has two sides, so has the principle of unity. It is an utopian idea to think that there is no social tension because of these diversities. But they can be tactfully handled by the authorities for getting global recognition and most importantly safety and security of our nation.

We all know the age-old saying, ‘United we stand, Divided we fall’ Today, my dear young friends, I am quoting J.K. Rowling, the creator of Harry Potter, “ we are only as strong as we are united, as weak as we are divided” I am sure you all believe her and take it as a maxim to protect the principle of ‘Unity and Diversity’ which is so unique for our country. I want to express my gratitude to Cultural Forum for selecting me to talk on a topic so close to my heart.

Yuvakbharati English 11th Digest Chapter 1.4 Pillars of Democracy Additional Important Questions and Answers

Question 1.
Discuss hero-worship by citing some examples.
Answer:
Hero-worship is to have exclusive admiration for someone which may lead to bias. The admirer refuses to believe that the hero might have any imperfection. The hero is idolized. It happens with film stars, sportsmen, politicians and sometimes with religious gurus.

Question 2.
‘Fraternity leads to social stability’ – Explain the statement.
Answer:
Fraternity is a common bond or feeling of unity among people. It automatically gives rise to the concept of togetherness of all cast, creed and religion. For a society to be stable, these are the basic necessities. In a vast country like India, it is definitely a tough job to maintain such feelings, but it has to be observed for the progress of the country. India, being a country of diverse communities, social stability is an essential ingredient for keeping the country safe and secure.

Question 3.
Find some words starting with ‘Anti’ like ‘Anti-social’
Answer:

1. Anti-climax
2. Anti-pathy
3. Anti-thesis
4. Anti-dote
5. Anti-virus
6. Anti-hero

Comprehension

Read the extract and complete the activities given below.

Global Understanding:

Question 1.
Supply information from the passage.
Answer:
1. When there was no way left for constitutional methods for achieving economic and social objectives, there was a great deal of justification for unconstitutional methods.
2. There is nothing wrong in being grateful to great men who have rendered lifelong services to the
country.

Question 2.
Choose the correct statements which are the themes of the passage.
(i) This passage talks about the dangers of inequality.
(ii) This passage talks about the importance of equality and fraternity.
(iii) In this passage Dr. Ambedkar supported Bhakti in politics.
(iv) Dr. Ambedkar is pained to see the denial of ‘One Man One Value’.
Answer:
(ii) This passage talks about the importance of equality and fraternity.
(iv) Dr. Ambedkar is pained to see the denial of ‘One Man One Value’.

State whether the following statements are true or false. Correct the false statement.

Question (i)
The people of America did not think that they were a nation.
Answer:
True

Question (ii)
The laity accepted the word ‘nation’ wholeheartedly.
Answer:
False – So many objections were raised by the laity to the word ‘nation’.

Question (iii)
Politically-minded Indian were in favour of the expression ‘the people of India’.
Answer:
False – Politically-minded Indians resented the expression ‘the people of India’.

Question (iv)
According to Dr. Ambedkar, it is necessary to realize the importance of becoming a nation.
Answer:
True

Complex Factual

Question 1.
What are the two things necessary to maintain democracy?
Answer:
The first thing that is needed to maintaihn democracy is to follow constitutional methods of achieving our social and economic objectives. The second thing which is of utmost importance to safeguard our democracy is not to lay our liberties even at the feet of a great man blindly.

Question 2.
What are the contradictions Dr. Ambedkar was worried about ?
Answer:
Dr. Ambedkar was worried about the contradictions of equality and fraternity. He was concerned about equality in politics but the possible inequality in our social and economic life. For him, fraternity might be a good concept but it was difficult to achieve.

Question 3.
What according to Dr. Ambedkar, was the problem of India becoming a ‘nation’? What was his suggestion to overcome the problem?
Answer:
According to Dr. Ambedkar, a nation divided into several thousands of castes, was one of the biggest problems of India becoming a nation. His suggestion was the realization of this fact as early as possible and think of ways and means to realize that goal.

Inference / Interpretation / Analysis

Question 1.
Mention the threats of hero-worship in Indian politics.
Answer:
Hero-worship plays a huge negative role in Indian politics. By excessive admiration for a person, the people of India tend to sacrifice their liberties at the feet of the person whom they admire. This can lead to misuse of power by exercising unconstitutional methods and encroaching upon people’s freedom.

Question 2.
Dr. Ambedkar was worried about inequality because –
(i) It will lead democracy to danger.
(ii) Long-standing inequality may be the cause of rebellion among the people.
OR
Explain.
‘Fraternity is a different thing to achieve’.
Answer:
India is a vast country with diverse cultures. Expecting brotherhood among all is not easy since there might be differences of opinions. But for the greater interest of the well-being of Mother India, this unity is desirable. Dr. Ambedkar also felt that was the right path to travel.

Personal Response:

Question 1.
Give an example of hero worship that you have come across in Indian politics.
Answer:
Electing the popular actors and actresses with landslide majority is a common hero-worship observed in most parts of India. The actors enjoy certain level of admiration which helps them win key portfolios enabling them to subvert key institution.

Question 2.
Explain your views on hero-worship.
Answer:
I am not against hero-worship. In life, one can have an idol/hero whom one tries to follow to reach one’s goal but too much of anything is bad and I am against excessive hero-worship which leads to biased idolizing.

Question 3.
Do you think India as a democracy is a successful nation. Explain.
Answer:
India as a democratic nation is indeed successful though there are certain elements which come in the way obstructing the smooth functioning of the government. Such elements are regionalism, casteism and fanaticism.

Language Study:

Question (i)
We must hold fast to constitutional methods. (Rewrite using a modal auxiliary showing ‘necessity )
Answer:
We need to hold fast to constitutional methods.

Question (ii)
There is nothing wrong in being grateful to great men. (Use infinitive)
Answer:
There is nothing wrong to be grateful to great men.

Question (i)
On the 26th January 1950, we are going to enter into a life of contradictions.
(Frame a Wh-question to get the underlined part of the sentence as answer.)
Answer:
What are we going to enter into on the 26th January, 1950?

Question (ii)
In politics, we will have equality. (Pick up the preposition and say its purpose)
Answer:
In-Inside something

Question (iii)
We are cherishing a great delusion. (Begin the sentence with ‘A great delusion…’and rewrite)
Answer:
A great delusion is being cherished by us.

Question (iv)
We shall realize the necessity of becoming a nation. (Use ‘that’ and rewrite as a complex sentence) Answer:
We shall realize that it is necessary to become a nation.

Vocabulary:

Question 1.
Match the words in column ‘A’ with their synonyms in column ‘B’.

Answer:

Question 2.
Make a list of meanings of all the homographs that are found in the text
Answer:

(ii) Example of Homograph
match, might, letter, fly, fine, leaves, left, right, ring, spring, state, well.

Question 3.
Give synonyms of the following.

1. Contradiction
2. Solidarity
3. Salvation
4. Degradation

Answer:

1. Situation in opposition
2. harmony to one another
3. liberation
4. deterioration

Question 4.
Find out the word from the passage which means –
1. rites prescribed for public worship
2. unity or agreement of feeling
Answer:
1. liturgy
2. solidarity

Grammar:

Frame Wh-question to get the underlined parts of the following sentences as answers.

Question 1.
Make sentences of your own with the following prepositions.
Answer:
(i) in, into, inside
I live in Mumbai / the flowers will bloom in spring.
The frog jumped into the well.
The jacket was inside the cupboard.

(ii) on, onto, above, over
The duster was on the teacher’s desk.
The child scattered all his toys onto the floor.
We were driving over the expressway.
My friend lives just above my apartment.

(iii) beside, besides
Ramu sits beside his best friend in the classroom.
Besides being learned, the gentleman is a good human being.

(iv) for, from, since
My grandparents will stay only for three hours.
My grandparents have been waiting since morning.
My grandparents have been waiting from 10 o’ clock.

(v) to, towards
I was going to school. (Definite destination)
I was going towards school. (May be somewhere near the school)

(vi) down, below, under, beneath, underneath,
The mountaineers came down safely.
The temperature never went below 40°C.
The scenes under the sea were very well filmed.
My mother kept my football kit safely beneath the cot. (Usually used in formal language)
You can search your slippers underneath the sofa. (Casually used)

(vii) between, among, amongst
She was sitting between two of us.
I distributed the chocolates among all my friends, (more commonly used)
My sister was the topper amongst the girls, (less common than ‘among’)

Glossary:

1. abandoned – left
2. salvation – saving from sin (Christian belief)
3. eventual – ultimate
4. contradiction – situation / ideas in opposition
5. solidarity – like-mindedness / harmony to one another
6. eminent – distinguished / renowned
7. divine – a cleric / clergyman
8. on the spur of the movement (phr) – without thinking and planning
9. resented – disliked/be displeased
10. antipathy – hostility / opposition
11. Grammar of Anarchy – a state of disorder due to the absence of non-recognition of controlling system
12. rendered – contributed, made available
13. chastity – purity, modesty
14. hero-worship – excessive admiration for somebody
15. degradation – cause something to become worse in quality
16. peril – danger, risk
17. triennial – the 300th anniversary
18. liturgy – rites prescribed for public worship
19. laity – members of a religious community
20. delusion – a mistaken idea or opinion
21. anti-national – the prefix ‘anti’ in anti-national expresses opposition to something.

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 4 Issue of Debentures Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 4 Issue of Debentures

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
A company cannot issue ___________ with voting rights.
(a) Equity shares
(b) Debentures
(c) Securities
Answer:
(a) Equity shares

Question 2.
A company can issue ___________ convertible debentures.
(a) Only Partly
(b) Only fully
(c) Partly or fully
Answer:
(c) Partly or fully

Question 3.
Money from ___________ Account is used for redemption of debentures.
(a) Capital
(b) Debenture Redemption Reserve
(c) Profit or Loss
Answer:
(b) Debenture Redemption Reserve

Question 4.
___________ protects the interest of debenture holders.
(a) Debenture Trustees
(b) Debenture holders
(c) Redemption Reserve
Answer:
(a) Debenture Trustee

Question 5.
Secured debentures must be redeemed within ___________ from the date of its issue.
(a) 10 days
(b) 10 years
(c) 15 years
Answer:
(b) 10 years

Question 6.
A company issuing ___________ debenture must create a charge on the assets of the company.
(a) Secured
(b) Unsecured
(c) Redeemable
Answer:
(a) secured

Question 7.
Debenture certificate must be issued within ___________ of allotment of debentures.
(a) 3 months
(b) 6 months
(c) 60 days
Answer:
(b) 6 months

Question 8.
The details of allotment of Debentures must be entered in ___________
(a) Register of debenture
(b) Register of members
(c) Register of creditors
Answer:
(a) register of debenture

Question 9.
A company that issues a prospectus or invites more than 500 persons to buy its debenture has to appoint ___________
(a) Register of companies
(b) Debenture holders
(c) Debenture trustees
Answer:
(c) Debenture Trustees

Question 10.
The contract between the company and Debenture trustees of companies is called as ___________
(a) Debenture trust deed
(b) Letter of offer
(c) Prospectus
Answer:
(a) Debenture Trusts Deed

Question 11.
Procedure for allotment of Debenture should be completed within ___________ from the date of receipt of applications.
(a) 6 months
(b) 3 months
(c) 60 days
Answer:
(c) 60 days

1B. Match the pairs.

Question 1.

Answer:

1C. Write a word or term or a phrase that can substitute each of the following statements.

Question 1.
Type of resolution needed to issue convertible debentures.
Answer:
Special Resolution

Question 2.
Account to be created for the redemption of debentures.
Answer:
Debenture Redemption Reserve Account

Question 3.
Institution appointed by the company to protect the interest of debenture holders.
Answer:
Debenture Trustee

Question 4.
Period within which secured debenture should be redeemed.
Answer:
10 years

Question 5.
Type of debentures on which the company has to create a charge on its assets.
Answer:
Secured Debenture

Question 6.
The document contains terms and conditions agreed upon by the company and the Debenture trustees.
Answer:
Debenture Trust Deed

Question 7.
The time period within which the procedure for allotment of debenture is to be completed from the date of receipt of applications.
Answer:
60 days

Question 8.
Period within which debenture certificate must be issued by a company.
Answer:
6 months

Question 9.
An institution that redresses grievances of debenture holders.
Answer:
Debenture Trustee/NCLT

Question 10.
The authority has the power to issue debentures.
Answer:
Board of Directors

1D. State whether the following statements are True or False.

Question 1.
Debenture holders have no voting rights.
Answer:
True

Question 2.
The company cannot issue non-convertible debentures.
Answer:
False

Question 3.
Special Resolution is needed to issue convertible debentures.
Answer:
True

Question 4.
Debentures holders are paid interest.
Answer:
True

Question 5.
Debenture Trustees cannot approach NCLT to redress grievances of debenture holders.
Answer:
False

Question 6.
All secured debentures should be redeemed within 20 years from the date of their issue.
Answer:
False

Question 7.
The company has to create a charge on its assets when it issues secured debentures.
Answer:
True

Question 8.
Debenture Trustees are appointed to protect shareholders.
Answer:
False

Question 9.
Debentures certificate should issue within 6 months of allotment of debentures.
Answer:
True

Question 10.
After allotment of Debentures names of Debenture holders is entered in the Register of Members.
Answer:
True

1E. Find the odd one.

Question 1.
Debenture holders, Interest, Dividend
Answer:
Dividend

Question 2.
Debenture Trustee, Court, NCLT
Answer:
Court

Question 3.
Secured debenture, convertible debenture, Irredeemable debenture
Answer:
Irredeemable

Question 4.
Debenture Trustee, Trust deed, Shareholder.
Answer:
Shareholder

1F. Complete the sentences.

Question 1.
A legal instrument conveying the assets of a company to the Debenture trustees is called ___________
Answer:
Debenture Trust Deed

Question 2.
To protect the interest of Debenture holders a company appoints ___________
Answer:
Debenture Trustee

Question 3.
On receipt of application and money, the procedure for allotment of debentures should be completed within ___________
Answer:
60 days

Question 4.
Authority to create charge on company’s assets is with the ___________
Answer:
Debenture Trustee

Question 5.
Secured debentures should be redeemed within ___________
Answer:
10 years

Question 6.
To stop a company from incurring further liabilities, the Debenture trustee can approach ___________
Answer:
NCLT

Question 7.
A company which issues prospectus or invites more than 500 persons to subscribe for its debentures, has to appoint ___________
Answer:
Debenture Trustee

Question 8.
Return on investment on debenture is called ___________
Answer:
Interest

Question 9.
For public issue of debentures of ₹ 100 crores, minimum subscription should be ___________
Answer:
75%

Question 10.
For public issue or rights issue of convertible debentures, as per SEBI, a company must obtain ___________
Answer:
Consent of shareholder

1G. Select the correct option from the bracket.

Question 1.

(Issued within 6 months of allotment, Names of debenture holders, Secured debentures, Trust Deed, Debenture holders)
Answer:

1H. Answer in one sentence.

Question 1.
Who are the debenture holders?
Answer:
Debenture holders are the applicants who purchase the debentures of the company. They are the creditors of the company.

Question 2.
What do debenture holders receive as a return on Investment?
Answer:
Debenture holders receive interest on investment.

Question 3.
Whom does the company appoint to protect the interest of debenture holders?
Answer:
Debenture Trustees are appointed to protect the interest of debenture holders.

Question 4.
Within what period should secured debenture be redeemed?
Answer:
Within 10 years, secured debenture should be redeemed.

Question 5.
Name of the document which acts as an agreement between company and trustee.
Answer:
The debenture Trust deed is a document that acts as an agreement between the company and the Trustee.

Question 6.
Who has the authority to create charges on assets of a company?
Answer:
Debenture Trustees have the authority to create charges on the assets of a company.

Question 7.
Name of the meeting in which approval for increasing the borrowing powers of the Board is passed.
Answer:
An Extra-Ordinary General Meeting, a resolution regarding the increase in borrowing powers of Board is passed.

Question 8.
Within what period should the debenture certificate be issued?
Answer:
A period of 6 months is required to issue a debenture certificate.

Question 9.
What is the minimum subscription that a company must collect for an issue of debentures of ₹ 100 crores?
Answer:
The minimum subscription that a company must collect for an issue of debentures of Rs.100 crores is 75% of the base issue size.

Question 10.
When should the company appoint a credit rating agency?
Answer:
In order to credit rating of securities, the company can appoint a Credit Rating Agency.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
The details of debenture holders are entered in the Register of Members.
Answer:
The details of debenture holders are entered in the Register of the debenture.

Question 2.
Secured debentures must be redeemed within 15 years from the date of its issue.
Answer:
Secured debentures must be redeemed within 10 years from the date of its issue.

Question 3.
A company issuing irredeemable debentures must create a charge on the assets of the company.
Answer:
A company issuing Secured Debentures must create a charge on assets of the company.

Question 4.
Return on investment on debentures is the dividend.
Answer:
Return on investment on debentures is Interest.

Question 5.
Debenture Trustees redress the grievances of shareholders.
Answer:
Debenture Trustees redress the grievances of Debenture holders.

Question 6.
Debenture certificates are issued within 3 months of allotment of debentures.
Answer:
Debenture certificates are issued within 6 months of allotment of debentures.

Question 7.
The procedure for allotment of debentures should be completed within 90 days from the date of receipt of applications.
Answer:
The procedure for allotment of debentures should be completed within 60 days from the date of receipt of applications.

Question 8.
To rate its debentures a company appoints underwrites.
Answer:
To rate its debentures a company appoints a Credit Rating Agency.

1J. Arrange in proper order.

Question 1.
(a) Obtain Credit Rating
(b) Entry in register of debenture
(c) Receive application with money
Answer:
(a) Obtain Credit Rating
(b) Receive application with money
(c) Entry in register of debenture

Question 2.
(a) Issue debenture certificate
(b) Issue prospectus
(c) Open Bank Account
Answer:
(a) Issue prospectus
(b) Open Bank Account
(c) Issue debenture certificate

Question 3.
(a) Hold Board Meeting for allotment
(b) Issue debenture certificate
(c) Receive application with money
Answer:
(a) Hold Board Meeting for allotment
(b) Receive application with money
(c) Issue debenture certificate

2. Explain the following terms/concepts.

Question 1.
Debenture Certificate
Answer:
A debenture Certificate is an acknowledgment issued by a company with its common seal and signature against debenture issued. It includes all the information of debenture issued, its face value, rate of interest details of debenture holder, etc. A debenture certificate should be issued by the company within 6 months -from the debenture’s allotment.

Question 2.
Debenture Trustee
Answer:
Debenture Trustees are institutions that are responsible to protect the interest of debenture holders. If the company invites more than 500 persons to buy debentures, then it has to appoint one more debenture trustee. The company issuing secured debentures also must appoint a debenture trustee. The company enters into a contract with debenture trustee

Question 3.
Charge on Assets
Answer:
Charge on assets means the right of the lender to be paid from a borrower’s asset if the debt is not paid on time. Every year the company must report its total debts secured by a charge on assets. The value of the charge should be adequate to cover the entire debenture issued.

Question 4.
Debenture Trust Deed
Answer:
Debenture Trust Deed is an agreement between the company and debenture trustees. It is a legal instrument stating a relationship between the company and the trustee. It covers all terms of conditions to be followed by the debenture trustee.

3. Study the following case/situation and express your opinion:

1. Rose limited company proposes to issue debenture to the public to raise funds. After discussion, the Board of directors has decided to issue secured, Redeemable non-convertible debentures with a tenure of ten years. Please advise the board on the following matters:

Question (a).
Should the company appoint a Debenture trustee?
Answer:
The company should appoint debenture trustees as they are responsible to protect the interests of debenture holders and they are the link between the company and Debenture holders.

Question (b).
Should the company create a charge on its assets?
Answer:
The company should create a charge on its assets because if the company failed to repay the amount to debenture holders, assets can be realized and the claim can be settled.

Question (c).
Can the tenure of debentures be less than ten years?
Answer:
The maximum tenure of redemption of secured debenture is 10 years. It can be less than 10 years. It shows the strong liquidity position of a company.

2. Violet Ltd. Company plans to raise ₹ 10 crores by issuing debentures. The Board of Directors has some queries. Please advise them on the following:

Question (a).
Can the company issue unsecured debentures?
Answer:
In India, as per the guidelines of SEBI, the issue of unsecured debenture is prohibited. So, the company can’t issue unsecured debenture.

Question (b).
Can they issue irredeemable debentures?
Answer:
The company can issue irredeemable debenture if it is permitted by the Ministry or department of central government or by RBI. It can be issued for a maximum period of 30 years.

Question (c).
As the company is offering debenture to its members, can such debentures have normal voting rights?
Answer:
As the company is offering debentures to its members, such debentures have no normal voting rights. It can enjoy the voting rights on the matters associated with them.

3. DDS financial plans to raise ₹ 10 crores by issuing secured, Non-convertible debentures. However, as per the Articles of Association, the board of directors has authority only to raise up to 5 crores. They are also considering whether to go for a private placement or make a public offer. Please advise them on the following:

Question (A).
What can be the maximum tenure of the debentures to be issued?
Answer:
All the secured debentures should be redeemed for 10 years. Only those companies permitted by RBI/ Dept. Of corporate affairs can issue debentures of more than 10 years but less than 30 years.

Question (b).
Is the proposed issue within the borrowing powers of the board?
Answer:
The proposed issue is not within the borrowing powers of the Board of Directors. If they want to increase their borrowing powers, they have to get the approval of shareholders.

Question (c).
Within what period should the company issue a Debenture certificate?
Answer:
A debenture certificate should be issued within 6 months from the date of allotment of debentures.

4. Answer in brief.

Question 1.
State any four provisions of the Companies act 2013 for the issue of debenture?
Answer:
The company can issue debentures to the public. But to issue debentures, companies need to follow provisions.
Following are the provisions of the Companies Act, 2013:
1. No Voting Rights:
A Company cannot issue debentures with voting rights. Debentures are the creditors of the company and hence, they do not have any voting rights. However, they can enjoy voting rights on the matters associated with them.

2. Payment of interest and redemption:
A debenture holder is responsible to get fixed interest on their investment from the company. The rate of interest is decided at the time of the issue of the debenture. A Company shall redeem the debentures after a specific period of time. It is a temporary capital of a company.

3. Debenture Certificate:
The company issues debenture certificates to the debenture holders. It should be issued by the company within six months from the date of allotment of debentures.

4. Create Debenture Redemption Reserve:
The company has to create a Debenture Redemption Reserve Account out of the profits of the company. Debenture Redemption Reserve is created for the payment of dividends and redemption of debentures only As per the Companies Amendment Act, 2019 no Listed companies, NBFC’s and Housing Finance Companies require Debenture Redemption Reserve.

Question 2.
What is Debenture Trust Deed?
OR
Write a note on Debenture Trust Deed.
Answer:

• A debenture is a loan document that helps the company to raise long-term loans from the Market.
• A person who purchases debenture of a company is called a debenture holder.
• A debenture holder is a creditor of the company and cannot participate in the management of the company.
• The company appoints debenture trustees to protect the interest of debenture holders.
• The company enters into the contract with debenture trustees, which is called as ‘Debenture Trust Deed’.
• The company can enter into a contract with one or more debenture trustees.
• The Terms and Conditions of debenture trustees are written into the debenture trust deed.
• It is a legal instrument conveying the assets of the company to the trustees.
• Debenture Trust Deed is a right of debenture holder and duty of debenture trustees.
• A company has to execute a trust deed within 3 months of the closure of the issue.
• Member and debenture holder can inspect the copy of the deed and also get the copy by paying a certain fee.

Question 3.
Who are debentures trustees?
Answer:

1. Debentures Trustee is a person or institution which protects the interest of the debenture holders. The Trustees become the custodian of the assets on which charge has been created.
2. A company that issues a prospectus or invites more than 500 persons to buy its debentures has to appoint one or more Debentures Trustees. Companies issuing secured debentures also must appoint Debentures Trustee.
3. Debentures Trustee is appointed before prospectus or letter of offer/offer letter is issued or within 60 days after the allotment of the debenture. The Trustees must give written consent to act as Debenture Trustees.
4. According to SEBI Rules, 1993 “debentures trustee” means a trustee of a trust deed for securing any issue of debentures of a body corporate (section 2 (bb)). (Applicable to public companies only).
5. The trustee can appoint a nominee to the board of directors of the company. Before the trustee appoints the nominee, the following conditions must be satisfied:
   • Two consecutive defaults made by the company in payment of interest to the debenture holders; or
   • Default in the creation of security for debentures or default in the redemption of debentures.

5. Justify the following statements.

Question 1.
A company has to create a charge on its asset for issuing secured debenture.
Answer:

• A debenture is a debt instrument, which helps the company to raise long-term loans.
• A secured debenture is a debenture against which a charge has been created.
• In case, if the company has failed to make redemption of debenture or interest, in that case by the order of NCLT, the charged asset can be realized by the company and dues can be settled.
• Thus, it is rightly said that a company has to create a charge on its asset for issuing secured debenture.

Question 2.
Debenture trustees are appointed by a company issuing debentures.
Answer:

• Debenture trustees are appointed when the company issues a prospectus or invites more than 500 people.
• They are appointed to protect the interest and redress the grievances of debenture holders.
• Debenture trustees act as custodians of assets and create a charge on assets of the company on behalf of debenture holders.
• In case, the company failed to redemption of a debenture or its interest, then debenture trustees by the order of NCLT can realize the assets and settle the dues.
• Thus, it is rightly said that debenture trustees are appointed by the company for issuing debenture.

Question 3.
A company can issue only certain types of debentures.
Answer:

• The debenture holders are the creditors of the company. They offered borrowed capital to the company but cannot participate in the management of the company.
• Therefore, in order to protect the interest of debenture holders, SEBI, through its guidelines allowing companies to issue certain types of debentures in India.
• Therefore, the companies operating in India can issue secured debentures, convertible debentures, redeemable debentures to the applicant.
• It protects the interest of creditors in the company.
• Thus, it is rightly said that a company can issue only certain types of debentures.

6. Answer the following questions.

Question 1.
Briefly explain the provisions of the Companies Act, 2013 for the issue of debentures.
OR
State the statutory provisions related to the issue of debentures.
Answer:
The company can issue debentures to the public. But to issue debentures companies need to follow provisions.
Following are the provisions of the Companies Act, 2013:
1. No Voting Rights:
A Company cannot issue debentures with voting rights. Debentures are the creditors of the company and hence, they do not have any voting rights. However, they can enjoy voting rights on the matters associated with them.

2. Types of Debentures:
There are various types of debentures like secured and unsecured debentures, convertible and non-convertible debentures, redeemable and irredeemable debentures, registered and bearer debentures, etc. All the debentures are redeemable in nature. A special resolution is to be passed in the general meeting for issuing convertible debentures.

3. Payment of interest and redemption:
A debenture holder is responsible to get fixed interest on his investment from the company. The rate of interest is decided at the time of the issue of the debenture. A Company shall redeem the debentures after a specific period of time. It is a temporary capital of a company.

4. Debenture Certificate:
The company issues debenture certificates to the debenture holders. It should be issued by the company within six months from the date of allotment of debentures.

5. Create Debenture Redemption Reserve:
The company has to create a Debenture Redemption Reserve Account out of the profits of the company. Debenture Redemption Reserve is created for the payment of dividends and redemption of debentures only. As per the Companies Amendment Act, 2019 no Listed companies, NBFC’s and Housing Finance Companies require Debenture Redemption Reserve.

6. Appointment of Debenture Trustees:
The company issuing debentures for more than 500 people or issuing prospectus has to appoint one or more Debenture Trustees. They are responsible to protect the interest of the debenture holders. Trustees are appointed by entering into the contract with the company which is called Debenture Trust Deed.

7. Debenture Trustees can approach NCLT:
Debenture Trustees have to redress the problem of debenture holders. Debenture Trustees can approach National Company Law Tribunal (NCLT) if the company fails to repay the principal amount on maturity or paying interest. NCLT can direct a defaulting company to repay the principal amount of interest.

8. Impose Restrictions:
Debenture Trustees can also approach NCLT when the company is not able to pay the principal amount of debentures, even after selling the company assets. In such a case, NCLT can order a company to restrict incurring further liabilities so as to protect the interest of the debenture holders.

9. Punishment for not complying with the provisions of the Companies Act:
If the company or any of its officers fails to comply with any of the provisions, then the company or the responsible officer who is in default will be liable to pay a fine or imprisonment or both as prescribed in the Act.

Question 2.
Explain briefly the procedure for the issue of debentures.
Answer:
A Company’s Secretary is mainly responsible to supervise the process of issue of the debenture. As the employee of the company, the secretary has to look into the matter that company complies with all the provisions.
Procedure for Issue of Debentures:

• Board Meeting and Resolution
• EOGM and Shareholder’s Approval
• Filing with Registrar of Companies
• Approval and Permission
• Credit Rating
• Underwriting Contract
• Trust Deed
• Issue of prospectus
• Open Bank Account with Scheduled Bank
• Receiving Applications and Allotment
• Board Meeting
• Issue Debenture Certificate
• Entries in register of member

1. Board Meeting and Resolution:

• Board Meetings should be conducted before issuing debentures. A resolution is passed before issuing debentures to the public. The resolution should specify the following points:
• Amount and type of debentures to be issued with terms and conditions
• Approve Prospectus/Offer Letter/Letter of Offer
• Appointment of Debenture Trustees with their consent
• Call Extra Ordinary General Meeting
• Opening of Separate Bank Account to receive money from applicants

2. EOGM and Shareholder’s Approval:
If the issue of debenture exceeds the limit of paid-up capital and free reserve, then the company needs to conduct extraordinary general meetings. An extraordinary General Meeting is held for passing a special resolution and getting the shareholder’s approval related to the increase in the issue of debentures.

3. Filing with Registrar of Companies:
Secretary has to file the special resolution and copy of the prospectus with the Registrar of Companies. It has to be filed within 30 days of the board meeting.

4. Approval and Permission:
Permission of SEBI is compulsory, in case the issue of debenture exceeds ₹ 1 crore or more. Simultaneously, approval of the stock exchange is required to be taken before a prospectus is issued to the public. It is mandatory to list the debentures on the recognized stock exchange before issuing them to the public.

5. Credit Rating:
As per SEBI guidelines, the company has to get its debenture rated by two recognized credit rating agencies such as CRISIL, CARE, ICRA, etc.

6. Underwriting contract:
The company may enter into an underwriting agreement with underwriters for its public issue of debentures. The appointment of underwriters must be mentioned in the prospectus.

7. Trust Deed:
The Trust Deed has to be executed between the company and trustees. Trustees give a guarantee of protection of debenture holder’s interest.

8. Issue of Prospectus/Letter of Offer/Offer Letter:
Company issues prospectus, if it is inviting the general public. An offer letter is issued if the company makes a private placement. Letter of Offer is issued for Right Issue (Offer to exist shareholders).

9. Appointment of Banker:
Issuing Company must appoint a ‘Scheduled Bank’ as a banker of the company. The company must open a separate account in the name of the company. This account is opened to receive the money from the applicants.

10. Receiving and Allotment of debenture:
A board meeting is held to decide and approve the allotment of debentures. Board also approves the creation of charges on the company assets. The company must make the arrangement to receive the application with application money. After Board Meeting, the company allows debentures to the applicants.

11. Issue of Debenture Certificate:
The allotment procedure has to be completed within 60 days from the receipt of application money. Debenture certificates are prepared by the secretary and issued to the debenture holders within 180 days from the date of allotment.

12. Entries in Register of Debenture:
If the debentures are issued in DEMAT form, the company does not maintain the Register of Debenture holders. After allotment, all details of debenture holders are entered in the register of the debenture. In case of debenture holders exceed 50, the company should maintain the ‘Index of Debenture holders.