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HSC 12th SP Important Board Question Paper 2026 (Maharashtra Board) | Target 90+ Marks

Important Model Question Paper 2026
Subject: Secretarial Practice (52)

Prepared by experienced set of teachers from Omtex Classes
Time: 3 Hours Max. Marks: 80

Note: This handwritten-style model paper is curated based on the board exam patterns from latest previous years papers. It covers the most high-probability questions for the 2026 HSC Board Examination.

Q. 1. (A) Select the correct answer from the options given below and rewrite the sentences: [5]

(1) Finance is the management of ________ affairs of the company.
(a) monetary (b) marketing (c) production
Ans: (a) monetary
(2) The ________ shareholders are the 'real masters' of the company.
(a) Preference (b) Equity (c) Deferred
Ans: (b) Equity
(3) Company can accept deposits from public, minimum for ________ months.
(a) nine (b) six (c) twelve
Ans: (b) six
(4) Demat shares are ________.
(a) non-transferable (b) fungible (c) bearer
Ans: (b) fungible
(5) A market which provides long term funds is called ________ market.
(a) Capital (b) Money (c) Commodity
Ans: (a) Capital

Q. 1. (B) Match the pairs: [5]

Group 'A' Group 'B' (Correct Answers)
(a) Regret Letter Non-Allotment of shares
(b) Depository Act 1996
(c) Final Dividend Decided by Board and declared by members
(d) Bonus Shares Capitalisation of profit
(e) Capital Budgeting Investment decision

Q. 1. (C) Find the odd one: [5]

(1) Debenture, Public Deposit, Retained earnings.
Ans: Retained earnings (It is owned capital; others are borrowed).
(2) Bonus shares, Rights shares, ESOS.
Ans: ESOS (For employees; others are for existing shareholders).
(3) Depository, D.P., RBI.
Ans: RBI (Central Bank; others are part of Depository system).
(4) Dividend, Interest, Rent.
Ans: Rent (Others are return on investment in company).
(5) Bull, Bear, Jobber.
Ans: Jobber (Broker type; Bull & Bear are speculators).

Q. 1. (D) Correct the underlined words and rewrite the sentences: [5]

(1) Owned capital is temporary capital.
Ans: Owned capital is permanent capital.
(2) Dividend is recommended by shareholders.
Ans: Dividend is recommended by Board of Directors.
(3) Bond holder is owner of the company.
Ans: Bond holder is creditor of the company.
(4) Deposit is a long term source of capital.
Ans: Deposit is a short term source of capital.
(5) A stock market is an important constituent of money market.
Ans: A stock market is an important constituent of capital market.

Q. 2. Explain the following terms / concepts (Any FOUR): [8]

(1) Fixed Capital:
It refers to capital used for acquiring fixed assets like land, building, machinery, etc. It stays in the business permanently and is used for long periods (more than 1 year).
(2) Bonus Shares:
Shares issued free of cost to existing equity shareholders out of accumulated profits or reserves. It is also known as capitalization of profits. They are given in proportion to shares held.
(3) Depository System:
A system where securities (shares, debentures, etc.) are held in electronic (dematerialized) mode. It operates like a bank for securities, eliminating paperwork and risks like theft or loss of physical certificates.
(4) Transmission of Shares:
The transfer of title of shares by operation of law (e.g., due to death, insolvency, or insanity of a member) to a legal representative. It is involuntary.
(5) Stock Exchange:
An organized market where existing securities are bought and sold. It provides liquidity to investments. The oldest in India is the Bombay Stock Exchange (BSE).
(6) Secured Deposit:
A deposit accepted by a company which is backed by a charge on the tangible assets of the company. If the company fails to repay, the asset can be sold to recover the amount.

Q. 3. Study the following case / situation and express your opinion (Any TWO): [6]

(1) Violet Ltd. company plans to raise ₹10 crores by issuing debentures. The Board has queries:

(a) Can they issue convertible debentures?
Ans: Yes, a company can issue convertible debentures which can be converted into equity shares after a specific period.
(b) Can such debentures have normal voting rights?
Ans: No, debenture holders are creditors and strictly cannot have voting rights.
(c) Capital raised will be Owned or Borrowed Capital?
Ans: Capital raised by issuing debentures is Borrowed Capital (Debt).

(2) Mr. Satish holds 100 shares in physical mode and wishes to convert them to electronic mode:

(a) Can he deposit his shares in his SBI Savings Account?
Ans: No, a standard Savings Bank Account cannot be used for shares. He needs a Demat account.
(b) What type of account is needed?
Ans: A Demat (Dematerialized) Account opened with a Depository Participant (DP) is needed.
(c) Is RBI the custodian after demating?
Ans: No, the Depository (like NSDL or CDSL) acts as the custodian of the electronic shares.

(3) GOLD Co. Ltd. declares a dividend of ₹10/- per share for F.Y. 2024-2025:

(a) Is company under default if dividend is not paid within 30 days?
Ans: Yes, failure to pay declared dividend within 30 days is a default punishable by law.
(b) Is company right in transferring unpaid dividend to Debenture Reserve Account?
Ans: No, it must be transferred specifically to the "Unpaid Dividend Account" scheduled bank account.
(c) Does the company have to transfer the unpaid dividend to IEPF after 30 days?
Ans: No, initially it goes to the Unpaid Dividend Account. Transfer to IEPF (Investor Education and Protection Fund) happens only if it remains unclaimed for 7 years.

Q. 4. Distinguish between the following (Any THREE): [12]

(Points are arranged Side-by-Side)

(1) Fixed Capital vs Working Capital

Fixed Capital Working Capital
Refers to capital invested in fixed assets (Land, Machinery). Refers to capital invested in current assets (Cash, Inventory).
Used for long-term periods. Used for short-term day-to-day operations.
Stays in business permanently. Circulates in business (Circulating Capital).

(2) Rights Shares vs Bonus Shares

Rights Shares Bonus Shares
Issued to existing shareholders against payment (usually discounted). Issued to existing shareholders free of cost (Gift).
Objective is to raise fresh capital. Objective is capitalization of accumulated reserves.
Company receives cash. Company receives no cash.

(3) Dematerialization vs Rematerialization

Dematerialization Rematerialization
Process of converting physical certificates into electronic form. Process of converting electronic holdings back into physical certificates.
Paperless trading is the objective. Holding physical record is the objective.
Form used: DRF (Demat Request Form). Form used: RRF (Remat Request Form).

(4) Final Dividend vs Interim Dividend

Final Dividend Interim Dividend
Declared at the AGM after the financial year ends. Declared by Board of Directors between two AGMs.
Recommended by Board, approved by Shareholders. Decided and declared solely by the Board.
Once declared, cannot be revoked. Can be revoked in exceptional circumstances.

Q. 5. Answer in brief (Any TWO): [8]

(1) State any four terms and conditions regarding acceptance of deposits.

Answer:
1. Amount of Deposit: Private companies can accept up to 100% of paid-up capital and free reserves. Public companies have different limits.
2. Tenure: Minimum 6 months, Maximum 36 months.
3. No Voting Rights: Depositors are creditors, not owners, hence no voting power.
4. Interest Rate: Must not exceed the maximum rate prescribed by RBI/Ministry of Corporate Affairs.

(2) Explain Employee Stock Option Scheme (ESOS).

Answer: ESOS is a scheme where a company offers its shares to permanent employees, directors, or officers at a predetermined price which is usually lower than the market price. It is a tool to retain talent and give them a sense of ownership. A minimum lock-in period (usually 1 year) applies before they can sell the shares.

(3) Explain features of Interest.

Answer:
1. It is the cost of using borrowed capital.
2. It is a fixed obligation; it must be paid regardless of whether the company makes a profit or loss.
3. It is calculated at a fixed percentage on the principal amount.
4. It is treated as an expenditure and is tax-deductible for the company.

Q. 6. Justify the following statements (Any TWO): [8]

(1) Equity shareholders are real owners and controllers of the company.

Justification:
• They bear the ultimate risk of the business (Risk Bearers).
• They have voting rights to elect the Board of Directors who manage the company.
• They participate in the management through Annual General Meetings.
• They receive dividend only after all other claims are settled (Residual claimants).

(2) Bond holder is creditor of the company.

Justification:
• Bonds represent borrowed capital, not ownership capital.
• Bond holders do not have voting rights or ownership status.
• They get a fixed rate of interest, which is a liability for the company.
• On liquidation, they are paid before shareholders.

(3) Stock exchange works for the growth of the Indian Economy.

Justification:
• It mobilizes small savings of the public into productive industries.
• It provides liquidity to investments, encouraging people to invest.
• It helps in capital formation which is essential for industrial and economic growth.
• It acts as an economic barometer reflecting the health of the economy.

(4) Unpaid dividend cannot be used by the company.

Justification:
• Dividend once declared becomes a debt payable to shareholders.
• If not claimed within 30 days, it must be moved to a special "Unpaid Dividend Account" within 7 days.
• The law strictly prohibits the company from using this money for its own operations.
• Eventually, if unclaimed for 7 years, it moves to the IEPF (Government Fund).

Q. 7. Attempt the following (Letter Writing) (Any TWO): [10]

Note: Draw a proper box layout for letters.

(1) Write a letter to the member for the payment of dividend through Dividend Warrant.

ABC COMPANY LIMITED
Regd. Office: 123, M.G. Road, Mumbai - 400 001.
CIN: L12345MH2000PLC123456
Website: www.abcltd.com | Email: abc@gmail.com
Phone: 022-12345678 Date: 15th May, 2026
Ref: D/2026/101

To,
Mr. Rahul Patil,
14, Rose Villa, Pune.

Subject: Payment of Dividend on Equity Shares.

Dear Sir,
I am instructed by the Board of Directors to inform you that the Final Dividend @ ₹ 2 per share (20%) has been approved at the AGM held on 10th May, 2026.

Your details are as follows:
Folio No. No. of Shares Distinctive Nos. Gross Amt (₹) Net Amt (₹)
RP-1005 100 501 - 600 200 200

We are enclosing herewith Dividend Warrant No. 456 for ₹ 200/-.

Thanking you,
Yours faithfully,
For ABC Company Ltd.

(Signature)
Company Secretary

Encl: Dividend Warrant

(2) Write a letter to the debenture holder regarding conversion of debentures into equity shares.

ABC COMPANY LIMITED
Regd. Office: MIDC, Pune - 411001.
Ref: CD/2026/55 Date: 20th June, 2026

To,
Ms. Priya Shah,
Mumbai.

Subject: Conversion of Debentures into Equity Shares.

Dear Madam,
Reference is made to the terms of issue of 10,000 12% Convertible Debentures. The Board has passed a resolution for conversion of your debentures into Equity Shares.

Deb. Cert No. No. of Debentures No. of Equity Shares Allotted New Share Cert No.
D-501 100 10 SC-990

Your debenture certificate is treated as cancelled. The new Share Certificate is enclosed.

Thanking you,
For ABC Company Ltd.
Company Secretary.

(3) Write a letter to depositor regarding renewal of his deposit.

ABC COMPANY LIMITED
Subject: Renewal of Fixed Deposit.

Dear Sir/Madam,
We have received your application dated 1st June 2026 for renewal of your Fixed Deposit Receipt No. 5001. The Board of Directors has approved the renewal for a further period of 1 year.

Old FDR No. Amount (₹) Period Rate of Interest New FDR No.
5001 10,000 1 Year 10% 6022

Enclosed is the new Fixed Deposit Receipt.

Thanking you,
For ABC Company Ltd.
Company Secretary.

Q. 8. Answer the following questions (Any ONE): [8]

(1) What are Preference Shares? Explain its types in detail.

Answer:
Definition: Preference shares are those shares which have a preferential right over equity shares in respect of: (a) Payment of dividend, and (b) Repayment of capital at the time of winding up.

Types of Preference Shares:
1. Cumulative Preference Shares: Unpaid dividend accumulates and is paid in future years. The arrears must be paid before equity dividend.
2. Non-Cumulative Preference Shares: Dividend is not accumulated; if not paid in a year due to loss, it is lost forever.
3. Participating Preference Shares: Holders get a fixed dividend + a share in surplus profit remaining after paying equity shareholders.
4. Non-Participating Preference Shares: Entitled only to a fixed rate of dividend stated at the time of issue.
5. Convertible Preference Shares: Can be converted into equity shares after a specific period.
6. Non-Convertible Preference Shares: Cannot be converted into equity shares.
7. Redeemable Preference Shares: Capital is repaid to shareholders after a fixed period.
8. Irredeemable Preference Shares: Capital is not repaid during the lifetime of the company (Note: As per Companies Act 2013, Indian companies cannot issue these anymore).

(2) Explain the procedure for issue of debentures.

Answer:
1. Pass Resolution in Board Meeting: The Board decides the amount, type, and terms of issue and calls for an EGM if needed.
2. Special Resolution (if required): If the borrowing exceeds the limit (Paid-up capital + Free reserves), shareholder approval via Special Resolution is needed.
3. Obtain Credit Rating: Compulsory from a recognized agency (e.g., CRISIL/CARE) to assess risk.
4. Enter into Debenture Trust Deed: Company appoints Debenture Trustees to protect interest of holders before issuing prospectus.
5. Issue Prospectus/Letter of Offer: Inviting public or select group to subscribe.
6. Open Separate Bank Account: To receive application money.
7. Allotment of Debentures: Board passes resolution for allotment after receiving applications. Issue Allotment Letters.
8. Issue Debenture Certificate: Must be issued within 6 months of allotment.
9. Register of Debenture Holders: Entries must be made in the register within 7 days of board approval.

Previous Years' Secretarial Practice Board Papers

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