Category: Class 12

Balbharti Yuvakbharati English 12th Digest Chapter 3.1 Summary Writing Notes, Textbook Exercise Important Questions and Answers.

Maharashtra State Board Class 12 English Yuvakbharati Solutions Chapter 3.1 Summary Writing

12th English Digest Chapter 3.1 Summary Writing Textbook Questions and Answers

Discuss in pairs and guess the correct alternative for the following:

Question 1.
To summarize means …………… .
(a) Put information in chronological order.
(b) To recapitulate the main points in selection
(c) To introduce new information
(d) To write one’s opinion about selection
Answer:
(b) To recapitulate the main points in selection

Question 2.
The type of summary that consists of a paragraph to express the main idea is …………… .
(a) Outline
(b) Report
(c) Synopsis
(d) Written summary
Answer:
(d) Written summary

Question 3.
There are various ways of incorporating other writers’ works into your own writing. They differ according to the closeness of your writing to the source writing. Match the ways of writing in brief given in column (A) with their descriptions in column (B):

Answer:

1. Summarizing – (e) It includes main ideas into one’s own words.
2. Paraphrasing – (f) It must be identical to the original and match the document word by word.
3. Precis writing – (d) It includes taking broader segment of the source and condensing it slightly.
4. Quoting – (a) It includes not just the main idea but every detail expressed clearly and to the point.
5. Editing – (b) It includes selection of proper lines from the given text for correction, condensation and organization.
6. Gist writing – (c) It includes the most essential part or the crux of the matter.

(A1)

Question 1.
Complete the following as instructed:
Read the passage and write its summary according to the given steps:
Answer:
Use the following steps for summary writing:
Step 1: Read the article twice.
Step 2: The purpose of writing – To tell the reader about the interesting communication methods among birds and mammals.
Step 3: Identify the main idea – Surprising examples of communication methods among birds and mammals.
Steps 4 and 5: Write the first draft: Revise your first draft and edit it.
(Students may attempt this on their own.)
Step 5: Write the final draft (Given overleaf.)

(A2)

(ii) Avoid adverbs:
Delete the adverbs in italics and rewrite:

Question (a)
“That’s usually a good thing to do.”
Answer:
“That’s a good thing to do.”

Question (b)
“That’s fairly good coffee.”
Answer:
“That’s good coffee.”

Question (c)
“I totally agree.”
Answer:
“I agree.”

Question (d)
“Actually I disagree.”
Answer:
“I disagree.”

Question (iii)
One word substitution:
Find examples similar to those given in the textbook and make a list:
Answer:

1. friendly relationship in which people understand well : rapport (pronounced as ‘rappo’)
2. able to cause death: fatal
3. seize by way of penalty: confiscate
4. someone who goes into buildings in order to steal: burglar
5. the principal character in a play or a story: protagonist
6. the path described by an object moving in air: trajectory
7. a person regarded as a symbol: icon
8. a person who knows many languages: polyglot
9. a badly behaved child: brat
10. a period of ten years: decade
11. a persistent increase in the general level of prices: inflation
12. organisation of supplies and services for any, complex operation : logistics
13. extremely careful about details: meticulous
14. not harmful or offensive: innocuous
15. present, appearing or found everywhere: ubiquitous

(ii) Change the following sentences into simple:

Question (a)
Mr. Rohit is the member and he is also the director.
Answer:
Mr. Rohit is the member and also the director.

Question (b)
The room is so small that it cannot accommodate many people.
Answer:
The room is too small to accommodate many people.

Question (c)
You have to prove that you are innocent.
Answer:
You have to prove your innocence.

Question (d)
He was late so he walked in a great hurry.
Answer:
Being late, he walked in a great hurry.

(A4)

Question (i)
Read any book of your choice and write its summary according to the steps explained in the chapter.

Question (ii)
Find some professions that require the skill of summary writing and editing. Write them
in your notebook.

Yuvakbharati English 12th Digest Chapter 3.1 Summary Writing Additional Important Questions and Answers

Question (i)
Cut redundant words:
Write five examples of redundant words:
Answer:

1. puzzling mystery = ‘mystery’
2. connect together = ‘connect’
3. divide into two equal halves = ‘divide into halves
4. surrounded on all sides = ‘surrounded’
5. return back = ‘return’

Balbharti Maharashtra State Board 12th Commerce Book Keeping & Accountancy Solutions Chapter 9 Analysis of Financial Statements Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Book Keeping & Accountancy Solutions Chapter 9 Analysis of Financial Statements

Objective Questions

A. Select the most appropriate alternative from those given below and rewrite the sentences:

Question 1.
Gross Profit Ratio indicates the relationship of gross profit to the ____________
(a) Net cash
(b) Net sales
(c) Net purchases
(d) Gross sales
Answer:
(b) Net sales

Question 2.
Current ratio = \(\frac{……………….}{Current liabilities}\)
(a) Quick assets
(b) Quick liabilities
(c) Current assets
(d) None of these
Answer:
(c) Current assets

Question 3.
Liquid assets = ____________
(a) Current assets + Stock
(b) Current assets – Stock
(c) Current assets – Stock + Prepaid Expenses
(d) None of these
Answer:
(b) Current assets – Stock

Question 4.
Cost of goods sold = ____________
(a) Sales – Gross profit
(b) Sales – Net profit
(c) Sales proceeds
(d) None of these
Answer:
(a) Sales – Gross profit

Question 5.
Net profit ratio is equal to ____________
(a) Operating ratio
(b) Operating net profit ratio
(c) Gross profit ratio
(d) Current ratio
Answer:
(a) Operating ratio

Question 6.
The common size statement requires ____________
(a) common base
(b) journal entries
(c) cashflow
(d) current ratio
Answer:
(a) common base

Question 7.
Bill payable is ____________
(a) long-term loan
(b) current liabilities
(c) liquid assets
(d) net loss
Answer:
(b) current liabilities

Question 8.
Generally current ratio should be ____________
(a) 2 : 1
(b) 1 : 1
(c) 1 : 2
(d) 3 : 1
Answer:
(a) 2 : 1

Question 9.
From financial statement analysis the creditors are specially interested to know ____________
(a) Liquidity
(b) Profits
(c) Sale
(d) Share capital
Answer:
(a) Liquidity

B. Give one word/term/phrase for each of the following statements.

Question 1.
The statement showing the profitability of two different periods.
Answer:
Comparative Income Statement

Question 2.
The ratio measures the relationship between gross profit and net sales.
Answer:
Gross Profit Ratio

Question 3.
Critical evaluation of financial statement to measure profitability.
Answer:
Analysis of Financial Statement

Question 4.
A particular mathematical number showing the relationship between two accounting figures.
Answer:
Ratio

Question 5.
An asset that can be converted into cash immediately.
Answer:
Liquid Asset

Question 6.
The ratio measuring the relationship between net profit and ownership capital employed.
Answer:
ROCE

Question 7.
The statement showing financial position for different periods of the previous year and the current year.
Answer:
Comparative Balance Sheet

Question 8.
Statement showing changes in cash and cash equivalent during a particular period.
Answer:
Cash Flow Statement

Question 9.
Activity related to the acquisition of long-term assets and investment.
Answer:
Financing Activities

Question 10.
The ratio that establishes a relationship between Quick Assets and Current Liabilities.
Answer:
Liquid Ratio

C. State true or false with reasons.

Question 1.
Financial statements include only the Balance Sheet.
Answer:
This statement is False.
Financial statements include Balance Sheet and Profit and Loss A/c. This is because financial statements are prepared by business organisations to find out the efficiency, solvency, profitability, growth, strength, and status of the business. For this, they need information from the balance sheet as well as from Profit and Loss A/c.

Question 2.
Analysis of financial statements is a tool but not a remedy.
Answer:
This statement is True.
Based on analysis of the financial statement one can get an idea of the financial strength and weakness of the business. However, based on this one cannot take decisions about the business on various issues. Hence analysis of financial statements is a tool but not a remedy.

Question 3.
Purchase of fixed assets is operating cash flow.
Answer:
This statement is False.
Purchase of fixed assets is cash flow from investing activities. It is not a day-to-day operations activity like office/selling/distribution finance expenses/activities.

Question 4.
Dividend paid is not a source of funds.
Answer:
This statement is True.
The dividend is always paid on shares issued by a company as an expense. Shares itself is a source of funds. In payment of dividends, cash goes out from the company. It is an outflow of cash and not a source of funds.

Question 5.
Gross profit depends upon net sales.
Answer:
This statement is True.
The gross profit ratio discloses the relation between gross profit and total net sales. The gross profit ratio is an income-based ratio, where gross profit is an income. There is a direct relation between net sales and gross profit. Higher the net sales higher the gross profit.

Question 6.
Payment of cash against the purchase of stock is the use of funds.
Answer:
This statement is True.
Cash payment for the purchase of stock is made from cash balance or/and from bank balance which is a part of the business fund. When stock or materials we purchase we use cash for payment.

Question 7.
Ratio Analysis is useful for inter-firm comparison.
Answer:
This statement is True.
The comparison of the operating performance of a business entity with the other business entities is known as an inter-firm comparison. This ratio analysis assists to know-how and to what extent a business entity is strong or weak as compared to other business entities.

Question 8.
The short-term deposits are considered as cash equivalent.
Answer:
This statement is True.
The short-term deposits are liquid assets. It means deposits are kept for some period (usually less than one year) and they are kept with an intention to get money quickly as and when required.
They are as good as cash and considered as cash equivalent.

Question 9.
Activity ratios and Turnover ratios are the same.
Answer:
This statement is True.
Turnover ratio is an efficiency ratio to check how efficiently a company is using different assets to extract earnings from them.
Activity ratios are financial analysis tools used to measure a business’s ability to convert its assets into cash. From both these definitions, we can say that Activity ratios and Turnover ratios are the same.

Question 10.
The current ratio measures the liquidity of the business.
Answer:
This statement is True.
The current ratio shows the relationship between current assets and current liabilities. If the proportion of current assets is higher than current liabilities, the liquidity position of the business entity is considered good. More liquidity means more short-term solvency. From the above, it is proved that the current ratio measures the liquidity of the business.

Question 11.
Ratio analysis measures profitability efficiency and financial soundness of the business.
Answer:
This statement is True.
With the help of profitability ratios (Gross profit, Net profit, and Operating profit) one can get the idea of profitability efficiency of the firm, and with the help of liquidity ratios (Current ratio and liquid ratio) one can get the idea of solvency or financial soundness of the business.

Question 12.
Usually, the current ratio should be 3 : 1.
Answer:
This statement is False.
Usually, the current ratio should be 2 : 1. It means current assets are double of current liabilities. It shows the short-term solvency of business enterprises.

D. Answer in one sentence only.

Question 1.
Mention two objectives of the comparative statement.
Answer:
Objectives of comparative statements are:

• Compare financial data at two points of time and
• Helps in deriving the meaning and conclusions regarding the changes in financial positions and operating results.

Question 2.
State three examples of cash inflows.
Answer:
Examples of cash inflows are:

• Interest received
• Dividend received
• Sale of asset/investment
• Rent received.

Question 3.
State three examples of cash-out flows.
Answer:
Examples of cash outflows are:

• Interest paid
• Loss on sale of an asset
• Dividend paid
• Repayment of short-term borrowings.

Question 4.
Give the formula of Gross Profit Ratio.
Answer:
Gross profit ratio = \(\frac{\text { Gross profit }}{\text { Net sales }} \times 100\)
Where Gross profit = Net sales – Cost of goods sold.
Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock
Net sales = Sales – Sales return.

Question 5.
Give the formula of Gross profit.
Answer:
Gross profit = Net sales – Cost of goods sold.
Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock
Net sales = Sales – Sales return.

Question 6.
Give any three examples of current assets.
Answer:
Cash or cash equivalent short-term lending and advances, expenses paid in advance, taxes paid in advance, etc. are examples of current assets.

Question 7.
Give the formula of the current ratio.
Answer:
Current ratio = \(\frac{\text { Current assets }}{\text { Current liabilities }}\)

Question 8.
Give the formula of quick assets.
Answer:
Quick assets = Current assets – (Stock + Prepaid expense)

Question 9.
State the formula of Cost of goods sold.
Answer:
Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock

Question 10.
State the formula of Average stock.
Answer:
Average stock = \(\frac{\text { Opentng stock of goods }+\text { Closing stock of goods }}{2}\)

Practical Problems

Question 1.
From the Balance Sheet of Amar Traders as of 31st March 2018 and 31st March 2019 prepare a Comparative Balance Sheet.

Solution:
Comparative Balance Sheet of Amar Traders as of 31st March 2018 and 31st March 2019


Percentage change = \(\frac{\text { Amount of absolute change }}{\text { Amount of previous year }} \times 100\)

Question 2.
From the Balance Sheet of Alpha Limited prepare a Comparative Balance Sheet as of 31st March 2018 and 31st March 2019:
Balance Sheet as of 31st March 2018 and 31st March 2019

Solution:
Comparative Balance Sheet of Alpha Limited as of 31st March 2018 and 31st March 2019

Question 3.
Prepare Comparative Balance Sheet for the year ended 31-3-18 and 31-3-19. Assets & Liabilities as follows:

Solution:
Comparative Balance Sheet as of 31st March 2018 and 31st March 2019

Question 4.
Prepare Comparative Balance Sheet for the year ended 31-3-17 and 31-3-18.

Solution:
Comparative Balance Sheet as of 31st March 2017 and 31st March 2018

Question 5.
Prepare Comparative Income statement of Noha Limited for the year ended 31-3-17 and 31-3-18.

Solution:
Comparative Income Statement of Noha Limited
For the year ended 31st March 2017 and 31st March 2018

Question 6.
Prepare Comparative Income Statement of Sourabh Limited for years ended 31-3-17 and 31-3-18.

Solution:
Comparative Income Statement of Sourabh Limited
For the year ended on 31st March 2017 and 31st March 2018

Question 7.
Following is the Balance Sheet of Sakshi Traders for the year ended 31-3-17 and 31-3-18

Prepare Common Size Balance Sheet for the years 31-03-17 and 31-03-18.
Solution:
Common Size Statement of Balance Sheet of Sakshi Traders as of 31st March 2017 and 31st March 2018

Note: Taking Total borrowed funds and Tota Funds applied as a base (100), Calculation is done.

Question 8.
Prepare Common Size Income Statement for the year ended 31-3-17 and 31-3-18.

Solution:
Common Size Statement for the year ended on 31st March 2017 and 31st March 2018

Note: Taking the amount of sales as base (100) other percentage figures are calculated.

Question 9.
Following is the Balance Sheet of Sakshi Limited. Prepare Cash Flow Statement:

Solution:
Cash Flow Statement
For the year ended 31st March 2017 and 31st March 2018

Question 10.
From the following Balance Sheet of Konal Traders prepare a Cash Flow Statement.

Solution:
Cash Flow Statement
For the year ended on 31st March 2017 and 31st March 2018

Question 11.
A company had following Current Assets and Current Liabilities:
Debtors = ₹ 1,20,000
Creditors = ₹ 60,000
Bills Payable = ₹ 40,000
Stock = ₹ 60,000
Loose Tools = ₹ 20,000
Bank Overdraft = ₹ 20,000
Calculate Current ratio.
Solution:
1. Current Assets = Debtors + Stock + Loose Tools
= 1,20,000 + 60,000 + 20,000
= ₹ 2,00,000

2. Current liabilities = Creditors + Bills payable + Bank overdraft
= 60,000 + 40,000 + 20,000
= ₹ 1,20,000

3. Current ratio = \(\frac{\text { Current assets }}{\text { Current liabilities }}\)
= \(\frac{2,00,000}{1,20,000}\)
= \(\frac{5}{3}\)
= 5 : 3

Question 12.
Current assets of company ₹ 6,00,000 and its Current ratio is 2 : 1. Find Current liabilities.
Solution:
Current ratio = \(\frac{\text { Current assets }}{\text { Current liabilities }}\)
\(\frac{2}{1}=\frac{6,00,000}{\text { Current liabilities }}\)
2 × Current liabilities = 6,00,000 × 1
Current liabilities = \(\frac{6,00,000}{2}\) = ₹ 3,00,000

Question 13.
Current liabilities = ₹ 3,00,000
Working capital = ₹ 8,00,000
Inventory = ₹ 2,00,000
Calculate Quick ratio.
Solution:
Current assets = Current liabilities + Working capital
= 3,00,000 + 8,00,000
= ₹ 11,00,000
Quick assets = Current assets – Inventory
= 11,00,000 – 2,00,000
= ₹ 9,00,000
Quick liability = Current liabilities – Bank O/D = ₹ 3,00,000
Quick ratio = \(\frac{\text { Quick assets }}{\text { Quick liabilities }}\)
= \(\frac{9,00,000}{3,00,000}\)
= \(\frac{3}{1}\)
= 3 : 1

Question 14.
Calculate Gross Profit ratio
Sales = ₹ 2,70,000
Net purchases = ₹ 1,50,000
Sales Ratio = ₹ 20,000
Closing Stock = ₹ 25,000
Operating Stock = ₹ 45,000
Solution:
Net sales = Sales – Sales return
= 2,70,000 – 20,000
= ₹ 2,50,000
Cost of goods sold = Opening stock + Net purchase – Closing stock
= 45,000 + 1,50,000 – 25,000
= ₹ 1,70,000
Gross profit = Net sales – Cost of goods sold
= 2,50,000 – 1,70,000
= ₹ 80,000
Gross Profit ratio = \(\frac{\text { Gross profit }}{\text { Net sales }} \times 100\)
= \(\frac{80,000}{2,50,000} \times 100\)
Gross profit ratio = 32%

Question 15.
Calculate Net Profit ratio from the following:
Sales = ₹ 3,80,000
Cost of goods sold = ₹ 2,60,000
Indirect expense = ₹ 60,000
Solution:
Sales = ₹ 3,80,000
Less: Cost of goods sold = ₹ 2,60,000
Gross profit = ₹ 1,20,000
Less: Indirect expense = ₹ 60,000
Net profit = ₹ 60,000
Net profit ratio = \(\frac{\text { Net profit }}{\text { Sales }} \times 100\)
= \(\frac{60,000}{3,80,000} \times 100\)
= 15.79%

Question 16.
Calculate Operating ratio:
Cost of goods sold = ₹ 3,50,000
Operating expense = ₹ 30,000
Sales = ₹ 5,00,000
Sales return = ₹ 30,000
Solution:
Net sales = Sales – Sales return
= 5,00,000 – 30,000
= ₹ 4,70,000
Operating ratio = \(\frac{\text { Cost of goods sold }+\text { Operating expense }}{\text { Net sales }} \times 100\)
= \(\frac{3,50,000+30,000}{4,70,000} \times 100\)
= \(\frac{3,80,000}{4,70,000} \times 100\)
= 80.85%

Question 17.
Calculate Current ratio.
1. Current assets = ₹ 3,00,000
2. Current liabilities = ₹ 1,00,000
Solution:
Current ratio = \(\frac{\text { Current assets }}{\text { Current liabilities }}\)
= \(\frac{3,00,000}{1,00,000}\)
= \(\frac{3}{1}\)
= 3 : 1

Balbharti Maharashtra State Board 12th Commerce Book Keeping & Accountancy Solutions Chapter 8 Company Accounts – Issue of Shares Textbook Exercise Questions and Answers.

Maharashtra State Board 12th Book Keeping & Accountancy Solutions Chapter 8 Company Accounts – Issue of Shares

1. Objective Questions:

A. Select the appropriate answer from the alternative given below and rewrite the sentence.

Question 1.
The balance of Share Forfeiture A/c is transferred to ______________ Account after re-issue of these share.
(a) Reserve Capital
(b) Capital Reserve
(c) Profit & Loss
(d) Share Capital
Answer:
(b) Capital Reserve

Question 2.
Premium received on issue of shares is shown to ______________
(a) Liability side of Balance Sheet
(b) Asset side of Balance Sheet
(c) Profit & Loss A/c debit side
(d) Profit & Loss A/c credit side
Answer:
(a) Liability side of Balance Sheet

Question 3.
Shareholders get ______________ on shares.
(a) interest
(b) commission
(c) rent
(d) dividends
Answer:
(d) dividends

Question 4.
The document inviting to subscribe the shares of a company is ______________
(a) Prospectus
(b) Memorandum of Association
(c) Articles of Association
(d) Share certificate
Answer:
(a) Prospectus

Question 5.
As per SEBI guidelines, minimum amount payable on share application should be ______________ Nominal Value of shares.
(a) 10%
(b) 15%
(c) 2%
(d) 5%
Answer:
(d) 5%

Question 6.
When shares are forfeited the Share Capital Account is ______________
(a) credited
(b) debited
(c) neither debited nor credited
(d) None of the given
Answer:
(b) debited

Question 7.
The liability of shareholder in Joint Stock Company is ______________
(a) joint and several
(b) limited
(c) unlimited
(d) huge
Answer:
(b) limited

Question 8.
The Share Capital which a company is authorized to issue by its Memorandum of Association is ______________
(a) Nominal Capital/Authorised Capital
(b) Issued Capital
(c) Paid-up Capital
(d) Reserve Capital
Answer:
(a) Nominal Capital/Authorised Capital

Question 9.
The unpaid amount on allotment and calls may be transferred to ______________ Account.
(a) Calls-in-Advance
(b) Calls
(c) Calls-in-Arrears
(d) Allotment
Answer:
(c) Calls-in-Arrears

Question 10.
There must be provision in ______________ for forfeiture of shares.
(a) Articles of Association
(b) Memorandum of Association
(c) Prospectus
(d) Balance Sheet
Answer:
(a) Articles of Association

B. Give one word/term/phrase for each of the following statements.

Question 1.
Amount called up on shares by the company but not received.
Answer:
Calls-in-Arrears

Question 2.
Issue of share at its face value.
Answer:
Issue at par

Question 3.
The person who purchases the shares of a company.
Answer:
Shareholder

Question 4.
The form of business organisation where a huge amount of capital can be raised.
Answer:
Joint-stock company

Question 5.
The capital is subscribed by the public.
Answer:
Subscribed capital

Question 6.
The shares having preferential rights at the time of winding up of the company.
Answer:
Preference shares

Question 7.
The shares on which dividend is not fixed.
Answer:
Equity shares

Question 8.
The part of subscribed capital is not called up by the company.
Answer:
Uncalled capital

C. State true or false with reasons.

Question 1.
Directors can forfeit the shares for any reason.
Answer:
This statement is False.
After paying money on share application, When share applicant fails to pay the call money or premium on shares in spite of repeated reminders and warnings directors/company can forfeit the shares.

Question 2.
Once the application money is received, directors can immediately proceed with the allotment of shares.
Answer:
This statement is False.
Directors can proceed for allotment of shares only after receiving the minimum subscription amount of the issued amount by cheque or other instrument complying with all legal requirements.

Question 3.
Joint-stock company forms of business organisations came into existence after the industrial revolution.
Answer:
This statement is True.
As the volume and scale of trade and industry expanded, especially after the industrial revolution, a very large unit of the commercial organisation requiring large capital and greater managerial skill, called Joint-stock company came into existence.

Question 4.
Equity shareholders get a guaranteed rate of dividend every year.
Answer:
This statement is False.
One of the features of equity shares is the rate of dividend payable on equity shares keeps on changing from one year to another. So, there is no question of guaranteed dividend every year for equity shareholders.

Question 5.
The face value of shares and market value of shares is always the same.
Answer:
This statement is False.
Face value of shares means the issue price of shares while the market value of shares means the trading price of shares at the stock exchange. The face value of shares remains the same and fixed. However, market price changes as per the performance of the company. Hence face value and market value of shares is not the same.

Question 6.
Sweat shares are issued to the public.
Answer:
This statement is False.
Sweat shares are issued by a company to its directors or employees at a discount or for consideration other than cash. Sweat shares are not issued to the public.

D. State whether you agree or disagree with the following statements.

Question 1.
In the case of Pro-rata allotment the excess application money received must be refunded.
Answer:
Disagree

Question 2.
Calls-in-Advance account is shown on the asset side of the Balance Sheet.
Answer:
Disagree

Question 3.
The Authorised Capital is also known as Nominal Capital.
Answer:
Agree

Question 4.
Paid-up capital can be more than Called-up Capital.
Answer:
Disagree

Question 5.
The joint-stock company can raise a huge amount of capital.
Answer:
Agree

Question 6.
When shares are Forfeited Shares Capital Account is credited.
Answer:
Disagree

Question 7.
Directors can re-issue forfeited shares.
Answer:
Agree

Question 8.
When the issued price of a share is ₹ 12 and face value is ₹ 10, the share is said to be issued at a premium.
Answer:
Agree

Question 9.
A public limited company can issue its share without issuing its prospectus.
Answer:
Disagree

Question 10.
Shares can be issued for consideration other than cash.
Answer:
Agree

E. Answer in one sentence only.

Question 1.
What are Preference Shares?
Answer:
Preference Shares are a type of share which enjoys priority or preference over equity share for the repayment of dividends at a predetermined fixed rate and for the repayment of capital.

Question 2.
What is Registered Capital?
Answer:
Registered Capital or Authorised Capital means the maximum limit up to which a company is authorized to raise share capital.

Question 3.
What is Reserve Capital?
Answer:
Reserve Capital is that part of the subscribed capital which is reserved to be called up only at the time of winding up or liquidation of the company.

Question 4.
What is Over Subscription of Shares?
Answer:
When a company received more applications of shares than those actually offered or issued to the public, known as Over Subscription of Shares.

Question 5.
Which account is debited when share first call money is received?
Answer:
The bank account will be debited when share first call money is received.

Question 6.
When are shares allotted on a pro-rata basis?
Answer:
Shares are said to be allotted on a pro-rata basis when the applications are received for more shares than the number of shares issued and shares are allotted in the proportion to the number of shares applied for.

Question 7.
What is Forfeiture of Shares?
Answer:
When a shareholder fails to pay the call money or premium on the shares in spite of repeated reminders and warnings, the company forfeits the shares of such defaulters known as forfeiture of shares.

Question 8.
What is Calls-in-Arrears?
Answer:
Non-payment of allotment or call money by the applicants in spite of repeated reminders are called Calls-in-Arrears.

Question 9.
What do you mean by Shares Issued at Premium?
Answer:
When shareholders are supposed to pay a price higher than the face value of the shares, their shares are said to be issued at a premium.

Question 10.
What is Paid-up Capital?
Answer:
Part of the called-up capital which is actually paid by the shareholders is called Paid-up Share Capital.

F. Complete the following sentences.

Question 1.
When the face value of the share is ₹ 100 and the issued price is ₹ 120, then it is said that the shares are issued at ______________
Answer:
premium

Question 2.
______________ Capital is the capital which a company is authorized to issue by its Memorandum of Association.
Answer:
Authorized

Question 3.
The difference between Called-up Capital and Paid-up Capital is known as ______________
Answer:
Calls-in-Arrears

Question 4.
______________ shareholders get fixed rate of dividend.
Answer:
Preference

Question 5.
______________ shareholders are the real owners of the company.
Answer:
Equity

Question 6.
______________ form of business organisation in which capital is raised through the issue of shares.
Answer:
Joint-stock company

Question 7.
______________ Capital is the part of Issued capital which is subscribed by the public.
Answer:
Subscribed

Question 8.
The part of Authorised Capital which is not issued to the public is known as ______________ Capital.
Answer:
Unissued

G. Calculate the following.

Question 1.
One shareholder holding 500 equity shares paid share application money @ ₹ 3, Allotment money @ ₹ 4 per share and failed to pay a final call of ₹ 3 per share his share was forfeited calculate the amount of forfeiture.
Solution:
Amount of forfeiture = Amount received by the company (In case of non-payment of ‘calls’)
Here, shareholders paid ₹ 3 per share on application and ₹ 4 per share on the allotment on 500 shares.
So, total amount received by company = 500 × ₹ 3 + 500 × ₹ 4
= 1,500 + 2,000
= ₹ 3,500
∴ Amount of share forfeiture = ₹ 3,500.

Question 2.
10,000 equity shares of ₹ 10 each issued at a 10% premium. Calculate the total amount of share premium.
Solution:
Equity shares = 10,000
Face value = ₹ 10 per share
Premium @ 10% = 10,000 × 10 × \(\frac{10}{100}\) = ₹ 10,000
So, premium 10,000 shares of ₹ 10 each at 10% = ₹ 10,000

Question 3.
The company received excess applications for 5000 shares @ ₹ 4 per share. The application of 1000 shares was rejected and a pro-rata allotment was made. Calculate the amount of application money adjusted with allotment.
Solution:
Excess application money received for 5000 shares @ ₹ 4 per share = ₹ 20,000
Less: Application of 1000 shares rejected and money refunded = ₹ 4,000
Excess money received to be adjusted with allotment = ₹ 16,000

Question 4.
80,000 equity shares of ₹ 10 each issued and fully subscribed and called up at 20% premium. Calculate the amount of Equity Share capital.
Answer:
Equity Share capital = No. of equity shares × face value of each share
= 80,000 × ₹ 10
= ₹ 8,00,000
Note: Equity Share capital has no concern with premium or discount amount.

Question 5.
Directors issued 20,000 equity shares of ₹ 100 each at par. These were fully subscribed and called up. All money was received except one shareholder holding 100 equity shares failed to pay a final call of ₹ 20 per share. Calculate the amount of Paid-up capital of the company.
Solution:
Fully subscribed and called-up amount = 20,000 equity shares × ₹ 100 each share
= ₹ 20,00,000
But one share holder failed to pay final call of ₹ 20 per share of 100 equity shares means
Non-payment of shares = 100 equity shares × ₹ 20 per share = ₹ 2,000
∴ Total Paid-up capital amount = ₹ 20,00,000 – ₹ 2,000 = ₹ 19,98,000

Question 6.
The company sends a regret letter for 100 shares and an Allotment letter to 25,000 shareholders. Application money per ₹ 20 per share. Calculate the amount of application money that the company is refunding.
Solution:
The company sends a Regret letter for 100 shares for ₹ 20 per share application money received i.e. only that much amount the company will refund.
Amount of refund = No. of shares × Value of per share
= 100 × ₹ 20
= ₹ 2,000

Practical Problems

Question 1.
Vijay Ltd. was registered with an authorized capital of ₹ 15,00,000 divided into 1,50,000 equity shares of ₹ 10 each.
The company issued 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The company received applications for 80,000 equity shares and was allotted the shares.
The company received application money ₹ 3 per share, allotment money ₹ 4 per share
(Including premium) and first, call money ₹ 3 per share.
The Directors have not made the final call of ₹ 2 per share. All money was received except one shareholder holding 500 shares did not pay the first call.
Show Authorised Capital, Issued Capital, Subscribed Capital, Called-up Capital,
Paid-up Capital, Calls in Arrears, and Share Premium amount in the company balance sheet.
Solution:
In the books of Vijay Ltd.
Balance Sheet as on ______________

Working Notes:
1. Bank balance at the end = Amount received on application + Amount received on allotment + Amount received on 1st call + Premium amount received
= 80,000 × 3 + 80,000 × 2 × 79,500 × 3 + 80,000 × 2
= 2,40,000 + 1,60,000 + 2,38,500 + 1,60,000
= ₹ 7,98,500

2. Directors have not made the final call of ₹ 2 per share means total called-up amount = ₹ 10 – ₹ 2 = ₹ 8

3. Calls-in-Arrears on 500 shares at ₹ 3 = ₹ 1,500 of the first call

4. Share premium on 80,000 shares @ ₹ 2 received at allotment stage i.e. share premium amount = 80,000 x ₹ 2 = ₹ 1,60,000

Question 2.
Anand Company Limited issued 1,00,000 preference shares of ₹ 10 each payable as-
On Application ₹ 4
On Allotment ₹ 3
On First call ₹ 2
On Second & Final call?
The company received applications for all these shares and received all money.
Pass Journal Entries in the books of Anand Company Ltd.
Solution:
Journal Entries in the books of Anand Company Ltd.

Question 3.
Rohini Company Limited issued 25,000 equity shares of ₹ 100 each payable as follows:
On Application ₹ 20
On Allotment ₹ 30
On First call ₹ 20
On the Second & Final call ₹ 30
The application was received for 22,000 equity shares and allotment of shares was made to them. All money was received by the company.
Pass Journal Entries in the books of Rohini Co. Ltd.
Solution:
Journal Entries in the books of Rohini Company Limited

Question 4.
Deepak Manufacturing Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of ₹ 10 each payable as follows :
₹ 2 on Application
₹ 4 on Allotment
₹ 2 on the First call
₹ 2 on Final call
The application was received for 1,20,000 equity shares. The Directors decided to reject excess applications and refunded application money on that. The company received all money.
Pass Journal Entries in the books of a company.
Solution:
Journal Entries in the books of Deepak Manufacturing Co.Ltd

Question 5.
Sucheta Company Limited issued ₹ 20,00,000 new capital divided into ₹ 100 equity shares at a premium of ₹ 20 per share payable as ₹ 10 on Application, ₹ 40 on Allotment and ₹ 10 premium ₹ 50 on Final call and ₹ 10 premium.
The issue was oversubscribed to the extent of 26,000 equity shares. The applicants on 2,000 shares were sent a letter of regret and their application money was refunded.
The remaining applicants were allotted shares on a Pro-rata basis. All the money due on Allotment and Final call was only received.
Make necessary Journal Entries in the books of Sucheta Company Ltd.
Answer:
Solution:
Journal Entries in the books of Sucheta Company Limited

Working Note:
Calculation of Application money transferred to Share Allotment:
Application money received (26,000 × 10) = 2,60,000
Less: Application money refunded (2,000 × 10) = 20,000
Less: Application money transferred to Share Capital: (20,000 × 10) = 2,00,000
Excess money received on application transferred to Share Allotment = 40,000
Bifurcation of calls amount:

Question 6.
Suhas Limited issued 10,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable ₹ 3 on application, ₹ 5 (including premium) on the allotment, and the balance in two calls of an equal amount. Applications were received for 11,000 equity shares and pro-rata allotment was made for all the applicants. The excess application money was adjusted towards allotment.
Mrs. Shobha who was allowed 200 equity shares failed to pay F/F/C and her shares were forfeited after the final call.
Show Journal Entries in the books of Suhas Ltd. and also show its presence in Balance Sheet.
Solution:
Journal Entries in the books of Suhas Limited

Balance Sheet of Suhas Limited

Working Notes:
1. Excess amount received at the time of application ₹ 3,000 adjusted at allotment stage, so allotment amount received in the bank is ₹ 47,000.

2. Amount called-up per share: ₹ 3 on application, ₹ 5 (including premium) on allotment i.e. ₹ 2 premium + ₹ 3 capital and balance amount ₹ 4 in two calls of the equal amount i.e. ₹ 2 on the first call and ₹ 2 on final call.

3. Mrs. Shobha was not able to pay F/F/C i.e. first and final call means 200 × ₹ 2 first call money = ₹ 400 and 200 × ₹ 2 final call money = ₹ 400.
Mrs. Shobha paid ₹ 6 per share towards capital which the company received and the company has the right to forfeit only paid amount means the company forfeited ₹ 1,200 of Mrs. Shobha.

Question 7.
Subhash Company Limited issues 2000 Equity shares of ₹ 100 each payable as ₹ 30 on application, ₹ 30 on the allotment, ₹ 40 on first and final call.
All the shares were subscribed and duly allotted. The company made all the calls. All cash was duly received except the first and final call on 100 equity shares. These shares were forfeited by the company and were re-issued as fully paid for ₹ 75 per share.
Show the Journal Entries in the books of Subhash Company Ltd.
Solution:
Journal Entries in the books of Subhash Company Limited

Working Notes:
1. Amount forfeited by the company on 100 shares forfeited = 100 × (30 + 30)
= 100 × 60
= ₹ 6,000

2. Calls-in-Arrears = 100 × 40 = ₹ 4,000.

3. Amount received on re-issue of 100 forfeited shares = 100 × 75 = ₹ 7,500.
Balance of ₹ 2,500 (i.e. loss 25 × 100) is transferred to Share Forfeiture A/c.

4. Amount transfer from Share Forfeiture A/c to Capital Reserve is ascertained by preparing Share Forfeiture A/c.

Question 8.
Pass Journal Entries for the forfeiture and re-issue of shares in the following cases:
(A) Asha Ltd. forfeited 100 equity shares of ₹ 20 each fully called-up for non-payment of the first call of ₹ 3 per share and final call of ₹ 5 per share. 80 shares of these were re-issued at ₹ 15 per share as fully paid.
(B) Bhakti Ltd. forfeited 100 equity shares of ₹ 10 each, ₹ 6 called-upon which the shareholder paid application and allotment of ₹ 5 per share. Of these 80 shares were re-issued as fully paid-up for ₹ 16 per share.
(C) Konark Ltd. forfeited 50 shares of ₹ 10 each, ₹ 8 called-up. The shareholder failed to pay the first call of ₹ 3 per share. Later on, 30 shares of these were re-issued at ₹ 7 per share.
Solution:
Journal Entries [For Asha Ltd.]

Working Notes for A:
1. Out of 100 forfeited shares, 80 shares were re-issued accordingly Equity Share Capital A/c is debited and credited.
2. To find the proportionate amount for Forfeiture A/c:
For 100 shares-share forfeiture amount = ₹ 1,200
∴ 80 shares – share forfeiture amount = ₹ 960
Now, out of this ₹ 960 we used ₹ 400 from Share Forfeiture A/c at the time of re-issue of shares.
So, balance of Share Forfeiture A/c = ₹ 960 – ₹ 400 = ₹ 560

Journal Entries [For Bhakti Ltd.]

Working Notes for B:
1. Out of 100 forfeited shares, 80 shares were re-issued accordingly Equity Share Capital A/c is debited for ₹ 600 and credited for ₹ 480.

2. The proportionate amount debited to Forfeiture A/c:
For 100 shares-share forfeiture amount debited = ₹ 500 1 Qn
∴ 80 shares – share forfeiture amount = ₹ \(\frac{80}{100} \times \frac{500}{1}\) = ₹ 400
Now, shares were re-issued at ₹ 6 per share which is a called-up amount.
∴ The proportionate amount for Forfeiture A/c ₹ 400 will be transferred to Capital Reserve A/c.

Journal Entries (For Konark Ltd.)

Working Note for C:
The proportionate amount debited to Forfeiture A/c:
For 50 shares – share forfeiture amount debited is ₹ 250
∴ 30 shares-share forfeiture amount = ₹ \(\frac{30}{50} \times 250\) = ₹ 150
Out of this ₹ 30 used for re-issue of forfeited shares.
∴ Balance of Share Forfeiture A/c = ₹ 150 – ₹ 30 = ₹ 120.

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 8 Correspondence with Depositors Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 8 Correspondence with Depositors

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

Question 1.
Depositors are ____________ of a company.
(a) members
(b) creditors
(c) debtors
Answer:
(b) creditors

Question 2.
Depositors provide ____________ capital to the company.
(a) short term
(b) long term
(c) medium-term
Answer:
(a) short term

Question 3.
A company cannot accept deposit for more than ____________ months.
(a) 24
(b) 36
(c) 45
Answer:
(b) 36

Question 4.
A company cannot accept deposit for less than ____________ months.
(a) 6
(b) 3
(c) 5
Answer:
(a) 6

Question 5.
Deposits are ____________ loans of the company.
(a) fixed
(b) short term
(c) long term
Answer:
(b) short term

Question 6.
Public deposits are accepted to meet the requirement of ____________ capital.
(a) fixed
(b) working
(c) owned
Answer:
(b) working

Question 7.
____________ has the power to invite deposits from public.
(a) Shareholders
(b) Auditors
(c) Board of Directors
Answer:
(c) Board of Directors

Question 8.
Rate of interest on deposits is ____________
(a) fixed
(b) fluctuating
(c) moderate
Answer:
(a) fixed

Question 9.
The return or income for the investment of money on deposits is called ____________
(a) dividend
(b) interest
(c) discount
Answer:
(b) interest

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
1. Depositors	(a) Fixed
2. Rate of Interest on deposits	(b) Evidence of Ownership
3. Deposit receipt	(c) Debtors
	(d) Creditors
	(e) Evidence of deposit
	(f) Fluctuating

Answer:

Group ‘A’	Group ‘B’
1. Depositors	(d) Creditors
2. Rate of Interest on deposits	(a) Fixed
3. Deposit receipt	(e) Evidence of deposit

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

Question 1.
Return on investment on deposit.
Answer:
Interest

Question 2.
The instrument for payment of interest on the deposit.
Answer:
Interest Warrant

Question 3.
An acknowledgment of the fixed deposit accepted by a company.
Answer:
Fixed Deposit Receipt

Question 4.
Return of deposits on the maturity date.
Answer:
Repayment of deposit

Question 5.
The maximum period of deposits.
Answer:
36 months

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

Question 1.
Fixed deposit is a short-term source of finance for the company.
Answer:
True

Question 2.
Fixed deposit holder is a creditor of the company.
Answer:
True

Question 3.
Deposits are invited by the company without issuing statutory advertisement.
Answer:
False

Question 4.
Fixed deposit holders are entitled to receive dividends.
Answer:
False

Question 5.
A private company cannot accept deposits from the general public.
Answer:
True

Question 6.
Depositors are given voting rights.
Answer:
False

1E. Find the odd one.

Question 1.
Dividend, Depositor, Deposit Receipt
Answer:
Dividend

Question 2.
Trust Deed, Depository, Deposit Receipt
Answer:
Depository

1F. Complete the Sentences.

Question 1.
Depositors are the ____________ of the company.
Answer:
Creditors

Question 2.
The ____________ must be cautious and careful while writing letters to the depositors.
Answer:
Secretary

Question 3.
Deposit is a ____________ term source of finance of the company.
Answer:
Short

Question 4.
A company can accept deposits for the minimum period of ____________ months.
Answer:
6 months

Question 5.
Depositors are entitled to receive ____________ at fixed rate.
Answer:
Interest

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Depositor	(a) …………………….
(2) Return on Deposits	(b) …………………….
(3) …………………….	(c) Maximum period of Deposits
(4) Minimum Period of Deposits	(d) ………………………

(Interest, Creditors of the company, 36 months, 6 months)
Answer:

Group ‘A’	Group ‘B’
(1) Depositor	(a) creditors of the company
(2) Return on Deposits	(b) interest
(3) 36 months	(c) Maximum period of Deposits
(4) Minimum Period of Deposits	(d) 6 months

1H. Answer in one sentence.

Question 1.
Who is the depositor?
Answer:
The person who keeps his/her money for a fixed period of time with the company is known as ‘Depositor’.

Question 2.
What is the return on deposit?
Answer:
Fixed-rate of interest is provided as the return on a deposit.

Question 3.
What is Interest Warrant?
Answer:
An interest warrant is an instrument of payment of interest.

Question 4.
What is a renewal of deposit?
Answer:
A process of continuing the deposit for an additional time period after maturity of investment (deposit) is called “Renewal of Deposit”.

Question 5.
Which document is enclosed along with the Renewal Letter?
Answer:
Renewal Deposit Receipt is enclosed along with the Renewal Letter.

Question 6.
When will the company return the deposits?
Answer:
The company will return the deposit amount at the time of maturity (after the expiry of the fixed period).

Question 7.
What is the minimum and maximum period of deposit?
Answer:
The deposit can be accepted for a minimum period of 6 months and a maximum period of 36 months.

1I. Correct the underlined words and rewrite the following sentence.

Question 1.
Depositors are owners of the company.
Answer:
Depositors are creditors of the company.

Question 2.
Deposits are the internal source of financing.
Answer:
Deposits are the external source of financing.

Question 3.
Deposit is a long-term source of capital.
Answer:
Deposit is a short-term source of capital.

Question 4.
Depositors are entitled to receive dividends.
Answer:
Depositors are entitled to receive interest.

1J. Arrange in proper order.

Question 1.
(a) Renewal of deposit
(b) Acceptance of deposit
(c) Deposit Receipt
Answer:
(a) Acceptance of deposit
(b) Deposit Receipt
(c) Renewal of deposit

Question 2.
(a) Payment of interest
(b) Deposit Receipt
(c) Acceptance of deposits
Answer:
(a) Acceptance of deposits
(b) Deposit Receipt
(c) Payment of interest

2. Explain the following terms/concepts.

Question 1.
Depositor
Answer:
The person who keeps deposits with the company for a fixed period of time is known as ‘Depositor’.

Question 2.
Deposit
Answer:
Deposit is a short-term source of finance of the company and it is used in order to satisfy the short-term working capital needs of the company.

Question 3.
Interest on deposit
Answer:
Interest on deposit refers to the return on the investment of money in deposits.

Question 4.
Deposit Receipt
Answer:
A deposit Receipt is an acknowledgment of deposit money accepted by the company.

Question 5.
Renewal of deposit
Answer:
Renewal of Deposit means accepting the same deposit for an additional period of time after its maturity.

Question 6.
Repayment of Deposit
Answer:
Refunding the amount of deposit on the maturity of tenure of deposits is known as ‘Repayment of Deposit’.

3. Answer in brief.

Question 1.
Which precautions are to be taken by the secretary while corresponding with depositors?
Answer:
Following precautions should be undertaken while drafting letters to the depositors:
(i) Courtesy:
While writing letters to the depositors, polite replies are essential. Rude and harsh words should be strictly avoided.

(ii) Quick response:
Being the creditors of the company, due respect should be given to the depositors of the company. Immediate replies to be given to the queries and complaints of the depositors without any delay.

(iii) Accuracy:
Letters written to the depositors should be accurate and precise. True and correct information should be provided to them.

(iv) Conciseness:
The letters to the depositors must be concise i.e. short, brief, and to the point. Unnecessary and irrelevant information should be avoided.

(v) Your Attitude:
The letters to the depositors must be written after taking into consideration the requirements of the depositors.

(vi) Secrecy:
As a confidential officer, the secretary has to maintain secrecy regarding correspondence with the depositors. Any secret information regarding the company must not be disclosed through correspondence.

(vii) Image and Goodwill:
Correspondence plays a very important role in maintaining the goodwill of the company. While corresponding, the secretary should take all necessary steps so that the goodwill of the company will not get affected.

(viii) Legal Provision:
The secretary should see to it that all provisions relating to invitation, acceptance, renewal, and repayment of deposits are duly followed by the company while corresponding with depositors.

Question 2.
What are the circumstances under which the Secretary makes correspondence with depositors?
Answer:

• A company secretary has to conduct correspondence with depositors on different occasions.
• This correspondence is limited as they are creditors and not the owners of the company.
• Deposits are accepted for a short period.
• The relationship of depositors also comes to an end immediately after deposits are repaid.

Following are the circumstances under which correspondence is done with the depositors:

• Letter to express thanks to the depositor for showing faith in the company and depositing the amount
• Intimation about payment of interest
  • Interest warrant
  • Electronic payment of Interest
• Letter informing about the renewal of deposit
• Informing the depositor about the maturity of deposits.

4. Justify the following statements.

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

• The deposit represents the short-term borrowed capital of the company.
• Depositors are the creditors of the company.
• The company secretary should correspond properly with the depositors in order to ensure the continuous flow of investments.
• The reply to queries and complaints of depositors should be prompt and courteous.
• The letter should be written from the depositors’ point of view and accurate information must be supplied to them.
• All the legal provisions must be followed and the goodwill of the company has to be maintained.
• Thus, it is rightly justified that the company secretary should take every precaution while corresponding with depositors.

Question 2.
There are certain circumstances when a secretary has to correspond with depositors.
Answer:

• Depositors are the creditors of the company and not the owners.
• Frequent correspondence with depositors is not required as they do not participate in the management of the company.
• The company secretary has to conduct correspondence with depositors regarding the acceptance of deposits, payment of interest on deposits, renewal of deposits, repayment of deposits, and so on.
• Secretary conducts such correspondence on behalf of the company and also as per the instructions of the Board of Directors.
• The secretary should be very cautious and careful while corresponding with depositors of the company.
• Thus, it is rightly justified that the secretary has to correspond with depositors on certain circumstances.

5. Attempt the following.

Question 1.
Draft a letter of thanks to depositors of a company.
Answer:

RADHIKA INDUSTRIES LIMITED
501A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH2002 PLC 503433

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/05/2018-19

Website: www.radhikalimited.com
Email: radhika4@gmail.com
Date: 15th May 2019

Mr. Deepak Ved
C/25, LIC Colony
L.J. Road, Mahim,
Mumbai – 400 096

Sub: Thanking Depositor For Fixed Deposit.

Dear Sir,
As per your application received for a fixed deposit of ₹ 1,00,000/- for a period of 1 year, dated 10th May 2019, we are thankful to you for showing faith and confidence in the company.

The details of deposits accepted are given in the following schedule:

1	2	3	4	5
Fixed Deposit Receipt No.	Amount of Deposit	Period of Deposit (years)	Rate of Interest (%)	Bank Details
				Name of the Bank	Bank Account No.
412	₹ 1,00,000	1 year	10%	Bank of Baroda	613234

The Board of Directors of our company expresses their gratitude for depositing money in our company. The fixed deposit receipt is enclosed along with this letter.

We assure you the best of our services all the time.
Thanking you,

Yours faithfully
For Radhika Industries Limited,

Sign
Mr. Harshad Sagwekar

Encl: Fixed Deposit Receipt No. 412

Question 2.
Draft a letter to a depositor informing him about payment of interest through interest warrant.
Answer:

RADHIKA INDUSTRIES LIMITED
501A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH 2002 PLC 503433

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/25/2019-20

Email: radhika4@gmail.com
Website: www.radhikalimited.com
Date: 18th April 2019

Mrs Ruchika Korgaonkar
A/23, BPT Colony,
N.K.Road, Mahim,
Mumbai:-400 096.

Sub: Payment of Interest on Fixed Deposits.

Dear Madam,
As per the board resolution passed in the Board Meeting held on 16th April 2019, this is to inform you that the interest @ 10% on your Fixed Deposit is due for payment.

Your company has complied with all the provisions relating to the payment of interest on deposits and the interest warrant drawn on ICICI Bank, Prabhadevi branch is enclosed herewith.

The details of your Fixed Deposit and interest payable on the deposit are given in the following schedule:

1	2	3	4	5	6	7
Interest Warrant No.	Fixed Deposit Receipt No.	Deposit amount	Rate of Interest (%)	Gross amount of interest	TDS @(10%)	The net amount of Interest Payable (₹)
3325	1242	₹ 1,00,000	10%	₹ 10,000	₹ 1,000	₹ 9,000

TDS certificate is enclosed for income tax purposes along with the interest warrant.
Thanking you,

Yours faithfully,
For Radhika Industries Limited

Sign
Mr. Fazal Shahzman

Encl:

1. Interest Warrant No. 3325
2. TDS certificate

Question 3.
Write a letter to the depositor for the renewal of his deposit.
OR
Draft a letter to the depositor for renewal of his deposit.
Answer:

SUNRISE INDUSTRIES LIMITED
50/A, Swami Narayan Road, Tunga Village, Mumbai: 400 072
CIN: L42105 MH2005 PLC 402512

Tel. No.: 022-23731242
Fax No.: 022-23738656
Ref. No.: S/DEP/51/2019-20

Website: www.sunriselimited.com
Email: sunrise5@gmail.com
Date: 17th Feb 2019

Mr. Rajesh Joshi
20, Hilton Complex,
Laxmi Road,
Solapur – 413 018

Sub: Renewal on Fixed Deposits.

Dear Sir,
We, hereby, acknowledge receipt of your application for the renewal of a deposit of ₹ 50,000/- for a further period
of one year. We have also received duly discharged deposit receipt No. 1242 and the same has been placed before the Board for consideration and approval.

As per the resolution passed at the Board meeting held on 15th Feb 2019, the Board has decided to renew the deposits for a further period of 1 year on the same terms and conditions.

A deposit receipt No 4424 is enclosed along with this letter.
Thanking you,

Yours faithfully,
For Sunrise Industries Ltd,

Sign
Miss Shalakha Suvarna
Company Secretary

Encl: Fixed Deposit receipt No 4424

Question 4.
Draft a letter to the depositor regarding redemption or repayment of his deposit.
Answer:

SWARG MARBLE LIMITED
40/B, C – Ramchandra Road, Khar (East), Mumbai: 400 053
CIN: L24308 MH2006 PLC 211388

Tel. No.: 022-4133242
Fax No.: 022-4215212
Ref. No.: S/DEP/15/19-20

Email: swarglimitedl2@gmail.com
Website: www.swarglimited.com
Date: 21st April 2019

Mr. Santosh Vichare
A/21, Swastik Colony,
Bhadkamkar Marg,
Fort, Mumbai:-400 020

Sub: Repayment of Fixed Deposits.

Dear Sir,
This is to inform you that your Fixed Deposit Receipt No. 3225 dated 1st May 2018 for ₹ 1,00,000/- will be due for repayment on 30th April 2019.

We have received original Deposit Receipt No. 3225 duly discharged along with instruction for repayment. The Board of Directors in the meeting held on 20th April 2019 has passed a resolution for the redemption of the deposits.

The details of repayment of deposit are as under:

1	2	3	4	5	6	7	8
Tenure of Deposit	Fixed Deposit Receipt No.	Deposit amount (₹)	Rate of Interest (10%)	Maturity amount (₹)	TDS (10%)	Net amount	Due Date of Deposit
1 year	3225	₹ 1,00,000	₹ 10,000	₹ 1,10,000	₹ 1,000	₹ 1,09,000	30th April 2019

Please find enclosed herewith a crossed cheque of ₹ 1,09,000, bearing No. 126224 dated 30th April 2019 drawn on Bank of India, Tardeo, Mumbai:- 400 034.
Thanking you,

Yours faithfully,
For Sward Industries Ltd,

Sign
Mr. Sandesh Virkar
Company Secretary

Encl: Crossed Cheque No. 126224

Question 5.
Draft a letter to a depositor informing him about payment of interest through electronic mode.
Answer:

RADHIKA INDUSTRIES LIMITED
501 A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH2002 PLC 503433

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/25/2019-20

Email: radhika4@gmail.com
Website: www.radhikalimited.com
Date: 18th April 2019

Mrs Anushka Khanvilkar
A/21, Mahindra Tower,
Tardeo Road, Mumbai Central,
Mumbai – 400 034

Sub: Payment of Interest on Fixed Deposits through ECS or NEFT.

Dear Madam,
As per the board resolution passed in the Board Meeting held on 16th April 2019, this is to inform you that the interest @ 10% on your Fixed Deposit is due for payment.

Your company has complied with all the provisions relating to the payment of interest on the deposits.

The details of your Fixed Deposit and interest payable on the deposit are given in the following schedule:

1	2	3	4	5	6
Fixed Deposit Receipt No.	Deposit amount	Rate of Interest (%)	Gross amount of interest	TDS @ (10%)	The net amount of Interest Payable (₹)
1242	₹ 1,00,000	10%	₹ 10,000/-	₹ 1,000	₹ 9,000

Interest will be payable by electronic transfer (ECS/NEFT), i.e. by crediting said interest to your bank account as per details provided by you to the company.
Thanking you,

Yours faithfully,
For Radhika Industries Limited,

Sign
Mr. Deepak Ved

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 7 Correspondence with Debentureholders Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 7 Correspondence with Debentureholders

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

Question 1.
Debenture Capital is a ______________ capital of a company.
(a) borrowed
(b) owned
(c) permanent
Answer:
(a) borrowed

Question 2.
Debenture holders are ______________ of the company.
(a) Owner
(b) Creditors
(c) Debtors
Answer:
(b) Creditors

Question 3.
Borrowed capital is provided to the company by ______________
(a) Equity shareholder
(b) Debenture holders
(c) Reference Shareholders
Answer:
(b) Debenture holders

Question 4.
Interest on Registered Debentures is given through ______________
(a) Interest Coupons
(b) Interest Warrant
(c) Refund order
Answer:
(b) Interest Warrant

Question 5.
______________ are the creditors of the company.
(a) Shareholders
(b) Debenture holders
(c) Directors
Answer:
(b) Debenture holders

Question 6
Bearer Debenture holders get interest though ______________
(a) Interest Warrants
(b) Refund Orders
(c) Interest Coupons
Answer:
(c) Interest Coupons

Question 7.
Return of income on debentures is ______________ at fixed rate.
(a) Dividend
(b) Loan
(c) Interest
Answer:
(c) Interest

Question 8.
______________ is an acknowledgement of debt issued by the company under common seal.
(a) Debentures
(b) Shares
(c) Reserve
Answer:
(a) Debentures

Question 9.
Debentures repayable after a certain period are ______________ debentures.
(a) Convertible
(b) Registered
(c) Redeemable
Answer:
(c) Redeemable

Question 10.
The rate of interest payable on Debentures is ______________
(a) uncertain
(b) Floating
(c) Fixed
Answer:
(c) Fixed

Question 11.
Debenture holders receive ______________ Certificate from the company.
(a) Share
(b) Bond
(c) Debenture
Answer:
(c) Debenture

Question 12.
Interest Warrants are sent to ______________ of the company.
(a) Shareholders
(b) Debenture holders
(c) Owners
Answer:
(b) Debenture holders

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Debenture holder	(1) Borrowed Capital
(b) Interest on Debentures	(2) Interest Coupons
(c) Convertible Debentures	(3) Evidence of Loan
(d) Debenture Certificate	(4) Safe and secure investment
(e) Investment in Debentures	(5) Interest Warrant
(f) Redeemable Debentures	(6) Conversion into Debentures
(g) Debentures	(7) Risky investment
	(8) Evidence of shares
	(9) Creditors
	(10) Conversion into equity shares
	(11) Redeemed after a fixed period
	(12) Redeemed at winding up of the company
	(13) Owner
	(14) Owned Capital

Answer:

Group ‘A’	Group ‘B’
(a) Debenture holder	(9) Creditors
(b) Interest on Debentures	(5) Interest Warrant
(c) Convertible Debentures	(10) Conversion into equity shares
(d) Debenture Certificate	(3) Evidence of Loan
(e) Investment in Debentures	(4) Safe and secure investment
(f) Redeemable Debentures	(11) Redeemed after a fixed period
(g) Debentures	(1) Borrowed Capital

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

Question 1.
Return on investment in debentures.
Answer:
Interest

Question 2.
Documentary evidence of holding the debentures.
Answer:
Debenture Certificate

Question 3.
Status of Debenture holders.
Answer:
Creditor

Question 4.
Debentures can be converted into equity shares.
Answer:
Convertible Debentures

Question 5.
The person who purchases debentures of the company.
Answer:
Debenture holders

Question 6.
An acknowledgment of debt issued by the company under its common seal.
Answer:
Debenture

Question 7.
Debentures whose name is mentioned in the Register of Debentures holders.
Answer:
Registered Debentures

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

Question 1.
Debenture holders get regular dividends.
Answer:
False

Question 2.
The debenture is the loan capital of the company.
Answer:
True

Question 3.
Convertible Debentures can be converted into equity shares.
Answer:
True

Question 4.
Interest on Debentures is paid notwithstanding the volume of profit.
Answer:
True

Question 5.
Debenture holders enjoy full membership rights of the company.
Answer:
False

Question 6.
Dividend warrants are used to pay interest to the debenture holders.
Answer:
False

Question 7.
All types of debentures are eligible for conversion into equity shares.
Answer:
False

Question 8.
Debentures are never redeemed by the company.
Answer:
False

Question 9.
Debenture holders are the owners of the company.
Answer:
False

Question 10.
Debentures are always fully paid up.
Answer:
True

1E. Find the odd one.

Question 1.
Depository Interest, Dividend.
Answer:
Depository

Question 2.
Interest Warrant, Dividend Warrant, Demat.
Answer:
Demat

Question 3.
Debenture holders, Shareholders, Dematerialisation.
Answer:
Dematerialization

Question 4.
Debenture holders, Shareholders, SEBI.
Answer:
SEBI

1F. Complete the Sentences.

Question 1.
Debenture holder is a ______________ of a company.
Answer:
Creditor

Question 2.
Company issues ______________ certificate to the Debenture holder after allotment of Debentures.
Answer:
Debenture

Question 3.
Debenture holder gets ______________ at fixed rate as a return or income.
Answer:
Interest

Question 4.
In case of Registered Debentures, Interest ______________ are used to pay interest.
Answer:
Warrants

Question 5.
The ______________ has to correspond with Debenture holders on important occasions.
Answer:
Secretary

Question 6.
The person who purchases the Debentures of a company is called ______________
Answer:
Debenture holder

Question 7.
Interest does not depend upon ______________ of the company.
Answer:
Profit

Question 8.
Company cannot issue Debentures with ______________ rights.
Answer:
Voting

Question 9.
Debenture Certificate should be issued within a period of ______________ months, from the date of allotment of Debentures.
Answer:
6

Question 10.
A company cannot issue Debentures to more than 500 people without appointing a ______________
Answer:
Debenture trustee

Question 11.
The power to issue Debentures has been vested with the ______________
Answer:
Board of Directors

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(a) Return on Debentures	(1) ………………………….
(b) Debenture Certificate	(2) …………………………
(c) …………………………	(3) Debenture holders
(d) ………………………..	(4) Debenture
(e) ………………………..	(5) Power to issue Debentures

(Debt capital, Board of Directors, Creditors, Issued within 6 months, Interest)
Answer:

Group ‘A’	Group ‘B’
(a) Return on Debentures	(1) Interest
(b) Debenture Certificate	(2) Issued within 6 months
(c) Creditors	(3) Debenture holders
(d) Debt capital	(4) Debenture
(e) Board of Directors	(5) Power to issue Debentures

1H. Answer in one sentence.

Question 1.
Who is the Debenture holder?
Answer:
The person who purchases Debentures of the company is known as a Debenture holder.

Question 2.
What is the income of Debentures holder?
Answer:
The income received by the Debenture holder is the fixed rate of interest.

Question 3.
What is Debenture?
Answer:
A debenture is an acknowledgment of debt received by the company.

Question 4.
What are Convertible Debentures?
Answer:
Convertible Debentures are the Debentures that are converted into equity shares.

Question 5.
Who takes the decision to allot the debentures?
Answer:
The Board of Directors takes the decision to allot the Debentures.

Question 6.
Which form is enclosed along with the letter of redemption of debentures?
Answer:
The debenture Redemption form is enclosed along with the letter of redemption of Debentures.

Question 7.
Which certificate will be issued after the Allotment of debenture?
Answer:
A debenture Certificate will be issued after the allotment of the debenture.

1I. Correct the underlined words and rewrite the following sentence.

Question 1.
The person who purchases debentures of the company is called Shareholders.
Answer:
The person who purchases Debentures of the company is called a Debenture holder.

Question 2.
Debenture holders get regular dividends at a fixed rate.
Answer:
Debenture holders get regular interest at a fixed rate.

Question 3.
A Share Certificate must be issued after the allotment of debentures.
Answer:
A Debenture Certificate must be issued after allotment of debentures.

Question 4.
A Debenture Redemption Reserve Fund is created by the company for the redemption of shares.
Answer:
A Debenture Redemption Reserve Fund is created by the company for the redemption of debentures.

Question 5.
A Demat Request Form is sent along with the letter of redemption of debentures.
Answer:
A Debenture Redemption Form is sent along with the Letter of Redemption of Debentures.

Question 6.
A company must issue a Debenture Certificate within 8 months of allotment of debentures.
Answer:
A company must issue a Debentures certificate within 6 months of allotment of debentures.

1J. Arrange in proper order.

Question 1.
(a) Board Resolution
(b) Allotment of Debentures
(c) Board Meeting.
Answer:
(a) Board Meeting
(b) Board Resolution
(c) Allotment of Debentures

Question 2.
(a) Interest Warrant
(b) Allotment of debentures
(c) Board meeting.
Answer:
(a) Board Meeting
(b) Allotment of Debentures
(c) Interest Warrant

2. Explain the following terms/concepts.

Question 1.
Debentures
Answer:

• Debentures represent the borrowed capital of the company.
• A debenture is an acknowledgment of debt given to the company.
• Debenture Capital is also known as the ‘Supporting Capital’ of the company.

Question 2.
Debenture holder
Answer:

• The person who buys Debentures of the company is known as ‘Debenture holders’.
• The debenture holder is the creditor of the company and has no right to participate in the management of the company.
• They get a fixed rate of interest as a return on their investment.

Question 3.
Interest on Debentures
Answer:

• The returns paid on investment in Debentures are known as ‘Interest’.
• The Rate of interest on Debentures is decided at the time of issue of Debentures.
• Debenture holders get a fixed rate of interest which does not depend upon the profit of the company.

Question 4.
Redemption of Debentures
Answer:

• Redemption means repayment.
• Debenture represents borrowed capital of the company and hence, it has to be repaid.
• Redeemable Debentures are repaid at the time of maturity. It is medium-term capital.

Question 5.
Conversion of Debentures
Answer:

• Conversion of Debentures means converting Debentures into equity shares.
• Convertible Debentures are those Debentures that are not repaid on maturity but converted into equity shares.
• Before conversion, they enjoy all rights of creditors whereas after conversion they get all benefits of the owner.

Question 6.
Interest Warrant
Answer:

• An interest Warrant is an instrument or payment of interest to the Debenture holders.
• It is like a crossed cheque that can be encashed through the Debenture holder’s bank account.

Question 7.
Conciseness
Answer:

• Conciseness refers to avoiding irrelevant and unnecessary information.
• As far as possible the letter should be brief, short, and to the point so that, the reader should develop an interest in reading it.

Question 8.
Precise Information
Answer:

• Precise information refers to providing timely and up-to-date information.
• The data given in the letter must be accurate and based on factual information.

Question 9.
Courtesy
Answer:

• Courtesy means politeness.
• The secretary has to be polite while corresponding with debenture holders. Due respect should be given to them being the Creditors of the company.
• The language in the letter should be courteous. Rude and harsh words should be avoided.

Question 10.
Debenture Certificate
Answer:

• A debenture Certificate is an acknowledgment of debt given to the company.
• It is issued under the common seal and signature of two directors of the company as a witness.
• It contains the name of the Debenture holder, number of Debentures, type of Debenture, rate of interest, maturity, etc.

3. Answer in brief.

Question 1.
Which are the precautions to be taken by the Secretary while corresponding with debenture holders?
Answer:
The following precautions are to be kept in mind by the secretary while corresponding with the debentures.
(i) Transparency:
Transparency means disclosing the correct and accurate information of the company. Including the credit rating of the company, true and real facts of companies’ affairs, etc. in correspondence.

(ii) Quick Response:
Secretary should promptly respond to the queries and complaints of debenture holders without any delay.

(iii) Courtesy:

• As debenture holders are the creditors of the company, proper respect should be given to them in correspondence.
• The wordings in the letter should be courteous. Rude and harsh words should be strictly avoided.

(iv) Conciseness:
Letters to the debenture holders should be brief and to the point avoiding unnecessary information.

(v) Accuracy:
The secretary should provide precise and up-to-date information to debenture holders. The information must be true and correct.

(vi) Confidentiality:
As a confidential officer of the company, the secretary must take due care and should not disclose any secret information about the company while writing letters.

(vii) Reputation of the company:
While corresponding with debenture holders, the secretary should try to maintain goodwill and create a good image of the company in the mind of debentures.

(viii) Legal Provisions:
The secretary should follow the statutory provisions of the Companies Act, 2013 and other related laws while corresponding with debenture holders. Secretary must be very careful in corresponding as it can cause legal consequences.

Question 2.
What are the circumstances under which correspondence can be made with debenture holders?
Answer:
Debenture holders are the creditors of the company. They have the right to know about the decisions taken by the management of the company and other information. The secretary corresponds with the debenture holders under various circumstances. The following are the few circumstances under which the secretary enters into correspondence with the debenture holders:

• Informing the applicant about the allotment of debentures.
• Informing about payment of interest through:
  • Interest Warrant
  • Electronic Mode
• Letter for the conversion of debentures into equity shares.
• Informing the debenture holders about the redemption of their debentures.

4. Justify the following statements.

Question 1.
The company secretary should take certain precautions while corresponding with debenture holders.
Answer:

• Secretary has to be more careful while drafting the letters. The languages used in the letter should be courteous, i.e. showing due respect to the shareholders.
• A prompt reply should be given to the queries raised by the debenture holder.
• The letter should be short and precise containing important information. The data provided in the letter should be up to date.
• It is also necessary for the secretary to keep in mind the goodwill of the company. Simultaneously, it is also necessary to be aware that the company follows all the legal provisions of the Companies Act, 2013.
• Thus, it is rightly justified that, the company secretary should take certain precautions while corresponding with debenture holders.

Question 2.
There are certain circumstances when a secretary has to correspond with debenture holders.
Answer:

• (i) Debenture holders are the creditors of the company and are entitled to receive the interest.
• (ii) Secretary being the link between the company and debenture holders has to draft various letters:
  • Allotment letter has to be sent to Debenture holders when the Debentures are allotted.
  • Letter for payment of interest has to be written to Debenture holders to inform them.
  • Payment can be done either through an interest warrant or ECS/ NEFT.
  • Letter informing the Debenture holders about conversion of debentures into equity shares.
  • Letter informing the Debenture holders about the redemption (repayment) of Debentures.
  • Thus, it is rightly justified that, there are different circumstances when a secretary has to correspond with Debenture holders.

5. Attempt the following.

Question 1.
Draft a ‘Letter of Allotment’ to debenture holders.
Answer:

RADHIKA INDUSTRIES LIMITED
50/A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH 2002 PLC 503433

Website: www.radhikalimited.com
Email: radhika4@gmail.com
Date: 14th May 2019

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DH/2018-19

Mr. Amit Desai,
C/23, LIC colony,
L.J Road, Mahim,
Mumbai – 400 096

Sub.: Public issue of 10,00,000 @ 12.5% non-convertible debentures of ₹ 100 each at par.

Dear Sir,
In response to your application AD- 1884 dated 19th April 2019, I am directed by the Board of Directors to inform you that, you have been allotted 100,12.5% non-convertible debentures of ₹ 100 each. The period of debentures is for 7 years.

These debentures are allotted to you as per the resolution passed at the Board Meeting held on 8th May 2019 and as per the terms and conditions of Debenture Trust Deed and Articles of Association of the company.

Details of allotment are as follows:

1	2		3		4
Folio No.	No. of Debentures		Distinctive Nos.		Amount received
	Applied	Allotted	From	To
B-520	100	100	101	200	₹ 10,000

The debenture Certificate will be sent to you within the stipulated period.
Thanking you,

Yours faithfully,
For, Radhika Industries Limited.

Sign
Company Secretary

Question 2.
Write a letter to debenture holders regarding payment of interest through an Interest Warrant.
Answer:

RADHIKA INDUSTRIES LIMITED
50/A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH 2002 PLC 503433

Website: www.radhikalimited.com
Email: radhika4@gmail.com
Date: 10th Jan 2019

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DH/2018-19

Mrs. Bharati Nikumbh,
A/22, BPT colony,
N.K Road, Mahim,
Mumbai – 400 096

Sub.: Payment of interest on debentures.

Dear Madam,
As per the board resolution passed in the Board Meeting held on 20th Jan 2019, this is to inform you that, the payment on your 10% non-convertible debentures of ₹ 100 each is due.

The details of the amount of interest payable to you are as follows:

1	2	3		4	5	6	7
Folio No.	No. of Debentures	Distinctive Nos.		Gross Amount of Interest	T.D.S (10% on interest)	Net Amount of interest	Interest Warrant No.
		From	To
B-110	100	101	200	₹ 1,000	NIL	₹ 1,000	TW-1242

The interest warrant is enclosed herewith. Please acknowledge the receipt.
Thanking you,

Yours faithfully,
For, Radhika Industries Limited.

Sign
Company Secretary

Encl: Interest Warrant No. IW-1242.

Question 3.
Draft a letter to the debenture holder informing him about the redemption of debentures.
Answer:

SWARG MARBLE LIMITED
40/B, C-Ramchandra Road, Khar (East), Mumbai: 400 053
CIN: L24308 MH2006 PLC211388

Website: www.swarglimited.com
Email: swarglimitedl2@gmail.com
Date: 16th March 2019

Tel. No.: 022-4133242
Fax No.: 022-4215212
Ref. No.: R/DH/14/18-19

Mr. Amit Berde
A/21, Swastik Colony,
Bhadkamkar Marg,
Fort, Mumbai 400 020

Sub: Redemption of debentures.

Dear Sir,
In accordance with the terms decided at the time of issue of 1,00,000, 10% Non-convertible debentures, this is to inform you that, the said debentures are due for redemption on 30th April 2019.

According to Board Resolution No. 4432 passed at the Board meeting held on 15th March 2019, said debentures shall be redeemed out of the Debentures Redemption Reserve of the company.

Please arrange to submit a duly filled up Debentures Redemption Form along with a duly discharged debenture certificate at the Registered Office of the company on or before 7th April 2019.

On completion of the above formalities, the redemption amount will be credited to your bank account. You are requested to provide us your bank account details.
Thanking you,

Yours faithfully,
For, Swarg Marble Limited.

Sign
Company Secretary

Encl: Debenture Redemption Form.

Question 4.
Draft a letter to debenture holder informing him about conversion of debentures into equity shares.
Answer:

SUNRISE INDUSTRIES LIMITED
50/A, Swami Narayan Road, Tunga Village, Mumbai: 400 072
CIN: L42105 MR 2005 PLC: 402512

Tel. No.: 022-23731242
Fax No.: 022-23738656
Ref. No.: D/DH/2018-19

Email: sunrise5@gmail.com
Website: www.sunriselimited.com
Date: 2nd May 2019

Mr. Uddhav Ansurkar
20, Hilton Complex,
Laxmi Road,
Solapur- 413018

Sub: Conversion of Debentures into Equity shares.

Dear Sir,
In accordance with the terms decided at the time of issue of 1,00,000, 10% fully Convertible debentures, this is to inform you that, the said debentures are due for conversion.

Accordingly, a special resolution was passed at the Extra Ordinary General Meeting held on 20th April 2019 for approval of the conversion of debentures into equity shares in the ratio of 5: 1. As per your letter of option, you have been allotted 10 equity shares in lieu of your 50 debentures.

Details of your holding after conversion are as follows:

1	2	3	4		5
Folio No.	No. of Debentures held	No. of Equity Shares issued	Distinctive Nos.		Share certificate No.
			From	To
225	50	10	201	210	1210

A duly signed and executed shares Certificate is enclosed.
Debenture Certificate will be null and void w.e.f. 30th April 2019.
Thanking you,

Yours faithfully
For, Sunrise Industries Limited.

Sign
Company Secretary

Encl: Share Certificate No. 1210

Question 5.
Write a letter to debenture holders regarding payment of interest electronically.
Answer:

RADHIKA INDUSTRIES LIMITED
50/A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH 2002 PLC 503433.

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DH/2018-19

Email: radhika4@gmail.com
Website: www.radhikalimited.com
Date: 10th March 2019

Mrs. Shweta Gawde.
B/20 Mahindra Tower,
Tardeo Road, Mumbai Central,
Mumbai – 400 034

Sub.: Payment of interest on debenture through ECS or NEFT.

Dear Madam,
As per the Board resolution passed in the Board Meeting held on 8th March 2019, this is to inform you that, the board is finalizing to pay interest @10% on Redeemable Debentures of ₹ 100 each for the year ending 31st March 2019.

We have complied with all the provisions relating to the payment of interest on debentures.

Details of your interest payment are as follows:

1	2	3		4	5	6
Register No.	No. of Debentures	Distinctive Nos.		Gross Amount of Interest	T.D.S (10% on interest)	Net Amount of interest
		From	To
E-340	100	201	300	₹ 1,000	NIL	₹ 1,000

Interest will be paid through ECS or NEFT transfer by crediting your bank account as per details provided by you to the company.
Thanking you,

Yours faithfully,
For, Radhika Industries Limited.

Sign
Company Secretary

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:

Group ‘A’	Group ‘B’
(a) Dividend Warrant	(9) Instrument for Payment of Dividend
(b) Return on Shares	(6) Dividend
(c) Bonus Shares	(4) Capitalisation of Reserve Fund
(d) ECS	(3) Electronic Clearing Service
(e) NEFT	(5) National Electronic Fund Transfer

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:

Group ‘A’	Group ‘B’
(a) Return on shares	(1) Dividend
(b) Capitalisation of Reserve Fund	(2) Bonus shares
(c) Correspondence	(3) Written communication
(d) ECS	(4) Payment of Dividend Electronically

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: yash30@gmail.com
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:

1	2	3	4	5
No. of Shares held on record date	No. of Bonus Shares Issued/Allotted	D.P. ID No. Credited to Demat Account No.	Client ID No. Credited to Demat Account No.	Date of Credit to Demat A/c
25	25	IN 300100	10116061	31-10-2019

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: comfort31@gmail.com
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.

1	2	3		4
Folio No.	Share Certificate Numbers	Distinctive Numbers		Total No. of Shares
		From	To
1006	9630	301	400	100

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: anmol5@gmail.com
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:

1	2	3		4	5	6	7
Register Folio No.	No. of Shares held	Distinctive Numbers		Dividend Warrant No.	Gross Dividend	Income Tax Deducted (TDS)	Net Dividend
		From	To
A-30	100	301	400	B-9931	Rs.250/-	NIL	250/-

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: sai31@gmail.com
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:

1	2	3	4	5	6
No. of Equity Shares held on Record Date (May 31st, 2019)	Dividend Per Share (₹)	Dividend Amount (₹)	DPID and Client ID No.	Date of Remittance	Bank A/c. (Bank of Baroda)
500	1	500	12033 200074 79005	6th June, 2019	5656000 22105 (Bank of Baroda)

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: shree3@gmail.com
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 Economics Solutions Chapter 5 Forms of Market Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Economics Solutions Chapter 5 Forms of Market

1. Choose the correct option:

Question 1.
In economic sense, market includes following activities
a) The place where goods are sold and purchased.
b) An arrangement through which buyers and sellers come in close contact with each other directly or indirectly.
c) A shop where goods are sold.
d) All of the above.
Options :
1) a and b
2) b and c
3) a, b and c
4) only b
Answer:
4) only b

Question 2.
Classification of markets on the basis of place
a) Local market, National market, International market
b) Very short period market, Local market, National market.
c) Short period market, National market, International market.
d) Local market, National market, Short period market.
Options :
1) a, b and c
2) b. c and d
3) only a
4) a and d
Answers:
3) only a

Question 3.
Homogeneous product is a feature of this market.
a) Monopoly
b) Monopolistic competition
c) Perfect competition
d) Oligopoly
Options:
1) c and d
2) a, b and c
3) a, c and d
4) only c
Answer:
4) only c

Question 4.
Under Perfect competition, sellers are
a) Price makers
b) Price takers
c) Price discriminators
d) None of these
Oplions:
1) a, b and c
2) only b
3) only c
4) a and c
Answers:
2) only b

2. Give economic terms:

1) The market where there are few sellers.
2) The point where demand and supply curve intersect.
3) The cost incurred by the firm to promote sales.
4) Number of firms producing identical product.
5) Charging different prices to different consumers for the same product or services.
Answers:

1. Oligopoly
2. Equilibrium point
3. Selling cost
4. Homogeneous
5. Discriminating monopoly

3. Complete the Correlation:

1) Perfect competition : Free entry and exit :: ……………. : Barriers to entry.
2) Price taker …………….:: Price maker:: Monopoly.
3) Single price : Perfect competition :: Discriminated prices : …………….
Answers:

1. Monopoly
2. Perfect competition
3. Monopoly

4. Find the odd word out:

1) Selling cost : Free gifts, Advertisement hoardings. Window displays. Patents.
2) Market sructure on the basis of competition : Monopoly. Oligopoly. Very Short Period market. Perfect competition.
3) Features of monopoly : Price maker, Entry barriers, Many sellers. Lack of substitutes.
4) Legal monopoly : Patent. OPEC. Copyright. Trade mark.
Answers:

1. Free gift
2. Very short period
3. Many sellers
4. OPEC

5. Answer the following:

Question 1.
Explain the features of Oligopoly.
Answer:
The term Oligopoly is derived from the Greek words ‘Oligo’ which means few and ‘Poly’ which means sellers. Hence, following are its features –

1. Many buyers and few sellers : There are many buyers and a few sellers or firms (may be five or six) who dominate the market and have major control over the price of a product.

2. Interdependence : Since the number of firms are less, any change in price, output, product etc. by one firm will affect the rival firms and will force them to change their price, output, etc. E.g. In case of Coke and Pepsi in soft drink market.

3. Selling cost or advertising : Each firm in order to sell more of its product takes aggressive steps to advertise or through free samples. This helps them to capture larger sales.

4. Barrier to entry : The firm can easily exit from the industry whenever it wants, but to enter a new industry it has certain entry barriers like government license, patent right, etc.

5. Uncertainty : There is a great uncertainty in this market if the rival firms join hands and may try to fight each other.

6. Lack of Uniformity : The firms may produce either homogeneous or differentiated products. Eg. In automobile industry, Maruti, Indica are examples of differentiated product but cooking gas of Bharat Petroleum and Hindustan Petroleum are examples of homogeneous product or pure oligopoly.

Question 2.
Explain the types of Monopoly.
Answer:
There are different types of monopoly as analysed below:

(1) Natural Monopoly : A natural monopoly arises when a particular type of natural resource is located in a particular region like petrol or crude oil in Gulf countries. Also natural advantages such as good location, business reputation, age – old establishment s etc., confer natural monopoly. Similarly, many professional skills, natural talents give monopoly power. E.g. A singer or actor has monopoly of his skill, talent.

(2) Legal Monopoly : Legal monopolies are those monopolies which are recognised by law. Legal protection granted by the Government in the form of trade mark, copy rights, license etc., give monopoly power to j the firms. Here the potential competitors are j not allowed to copy the product registered under the given brand names, patents or trade marks according to the law.

(3) Joint Monopoly or Voluntary Monopoly : This monopoly arises through mutual agreement and business combinations like the formation of cartels, syndicate, trust etc. For e.g. Oil producing nations have come together and formed a Cartel OPEC Organisation of Petroleum Exporting Countries.

(4) Simple Monopoly : A simple monopoly firm charges a uniform price for its product to all the buyers.

(5) Discriminating Monopoly : A discriminating monopoly firm charges different prices for the same product to ) different buyers. E.g. a doctor, a teacher, a lawyer, etc., charges different fees from the people. The practice of charging different j prices from different buyers is called “Price discrimination.”

(6) Private Monopoly : When an individual or a private firm enjoys the monopoly of manufacturing and supplying a particular product, it is called private monopoly. The main aim of private monopolist is profit maximisation.

(7) Public Monopoly : When a field of production is solely owned, controlled and operated by the government, it is regarded as public monopoly. Eg. Public utility service like Railways, Electricity, Water Supply etc. Since these monopolies are service motivated and welfare oriented they are also called welfare monopolies.

6. Observe the table and answer the questions:

Question 1.
Fill in the blanks in the above schedule.
Answer:

Question 2.
Derive the equilibrium price from the above schedule with the help of a suitable diagram.

Answer:
In the diagram, equilibrium price is ₹ 30/- because at this point dd curve insects SS curve at point ‘P’. At this point DD is 300 doz of bananas and sellers are ready to sell 300 doz at price ₹ 3.

7. Answer in detail:

Question 1.
Explain the meaning of Monopolistic competition with its features.
Answer:

(1) Fairly large number of Sellers : There are large number of sellers selling closely related, but not identical products. There is tough competition among sellers. An individual seller supply is just a small part) of the total supply, so he has limited degree l of control over market supply and price. Each firm (seller) can formulate its own price and output policy independently.

(2) Fairly large number of Buyers: There are large numbers of buyers in a monopolistic competition market. Each buyer enjoys his preference over a particular brand and chooses to buy a specific brand of product. Hence, the buying is by choice and not by chance.

(3) Product Differentiation : The most distinguishing feature of monopolistic competition is that the product produced by different firms are not identical, they are slightly different from each other but they are close substitutes. The product differentiation can be done in different ways like may be in the form of brand names say Raymonds. It can be differentiated in terms of colour, size, design, etc., say soap, mobiles etc., or through sales technique. For e.g. cars, two wheelers, air conditioners, etc.

(4) Free Entry of Firms: A firm is free to enter the market as there are no entry barriers. Similarly there are no restrictions if the firm wants to quit the market. Freedom of entry leads to occurrence of only normal profit in the long run.

(5) Selling Cost : One of the special features of monopolistic competition is the selling cost. Selling costs are those costs, which are incurred by firms to create more and more demand for its products through advertisement, salesmanship, free samples, exhibitions, etc.

(6) Downward Sloping Elastic Demand Curve : The demand curve faced by each firm is downward sloping and comparatively more elastic. It implies that an individual firm can sell more only by reducing the price.

(7) Concept of Group : Under monopolistic competition, Prof. E. H. Chamberlin introduced the concept of group in place of Marshallian concept of industry. Industry means a number of firms producing identical products. A group means a number of firms producing differentiated product, which are close substitutes.

Question 2.
Explain the meaning of Perfect competition with its features.
Answer:

(1) Perfect Mobility of Factors of Production : Factors of production that is land, labour, capital are perfectly free to move from one firm to another or from one industry to another from one region to another or from one occupation to another. This ensures freedom of entry and exit for individuals and firms.

(2) Single / Uniform Price : There exists a single price for homogeneous product in the entire market at a given point of time. The price is determined by forces of demand and supply.

(3) Large Numbers of ellers : There are many sellers in this market. The number of sellers (firms) are so large that a single seller cannot influence the market price nor the total output in the market (Industry). The contribution of one seller is insignificant and microscopic. The price in the market is determined by the forces of market demand and market supply. Hence, a firm or seller is a ‘price taker’ and not a ‘price maker.’


(4) Homogeneous Product : The products produced by all the firms in the industry are identical and are perfect substitute to each other. The products are identical in shape, size, colour, etc. and hence uniform price rules the market for the product.

(5) Large Number of Buyers : There are large number of buyers in the market. One individual buyer’s demand is only a small fraction of total market demand so he is not in a position to influence the price. He is a price taker.

(6) No Government Intervention : It is assumed that the government does not interfere with the working of market economy. There are no tariffs, subsidies, licensing policy or other government interventions. This non – intervention of government is necessary to permit free entry of firms and automatic adjustment of demand and supply. In short, laissez faire policy prevails under perfect

(7) Perfect Knowledge : There is perfect knowledge on the part of buyers and sellers regarding the market conditions especially regarding market price. As a result no buyer will pay a higher price than the market price and no seller will charge a lower price than the market price. So a single price would prevail for a commodity in the entire market.

(8) Free Entry and Free Exit : There is freedom for new firms or sellers to enter the industry or market. There are no legal, j economic or any other type of restrictions or; barriers for new firms to enter the industry or an existing firms to quit the industry, Entry of new firm usually takes place j when existing firms enjoy abnormal profit. Similarly, existing firms quit the industry when they face losses.

(9) No Transport Cost: It is assumed that all firms are close to the market and hence there  is no transport cost. If the transport cost are added to the price of product then the homogeneous commodity will have different prices depending upon the distance from the place of supply to the market.

Question 1.
Do you know? (Textbook Page 50)
What is monopsony?
Answer:
Monopsony is opposite of monopoly market but it is rarely found in reality.
In monopsony, there are large number of sellers but buyer is only one. So buyer has complete control over the price in the market. He can bargain with the sellers and fix the price at his terms.

Find out (Textbook Page 50)

What are the types of monopoly of the following products or services and give reason.
(1) Tea in Assam, (2) Atomic energy, (3) Logo of a commercial bank
Answer:

Product / Service	Types of Monopoly	Reason due to
Tea in Assam	Natural Monopoly	suitable climatic conditions and hilly regions of Assam.
Atomic energy	Public Monopoly	Atomic energy is owned and controlled by the government.
Logo of a Commercial Bank	Public Monopoly	Commercial Banks are owned and controlled by the government.

Find out (Textbook Page 51)

Find the close substitutes for the following products:
Answer:

	Products	Substitutes
(a)	Gemini Oil	Saffola Oil
(b)	Colgate Toothpaste	Meswak Toothpaste
(c)	Red Label Tea	Girnar Tea
(d)	Bru Cafe	Nescafe
(e)	Activa Two-wheeler	Aviator – Two-wheeler

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 7 First Aid in Mental Health Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Psychology Solutions Chapter 7 First Aid in Mental Health

1. Choose the correct option and complete the following statements.

Question 1.
One of the major obstacles to getting help from a mental health professional is the ………………… attached to mental illness.
(a) policy
(b) stigma
(c) society
Answer:
(b) stigma

Question 2.
Friends and family are not a substitute for …………………..
(a) solving problems
(b) giving solutions
(c) professional help
Answer:
(c) professional help

Question 3.
In our culture the ………………….. of an individual is considered to be the reflection of one’s family.
(a) intelligence
(b) behaviour
(c) status
Answer:
(b) behaviour

Question 4.
Individuals who experience ………………… commonly have a negative thinking style.
(a) depression
(b) phobia
(c) acute stress
Answer:
(a) depression

2. Answer the following questions in 35 – 40 words each.

Question 1.
Describe the term Mental Health First Aid?
Answer:
Mental Health First Aid (MHFA) is an internationally recognized training programme designed to teach people how to identify the signs and symptoms of mental health problems and to provide assistance on a first aid basis. MHFA was originally developed by Betty Kitchener and Anthony Jorm.

First Aid in Mental Health is a concept based on the idea of ‘prevention is better than cure’. If the early signs of mental illness are recognized, it can help in the following ways.

1. Diagnosis – timely diagnosis at the onset of mental illness helps to prevent it from developing into a more severe form.
2. Intervention – early intervention helps to get professional help.
3. Relapse prevention – it prevent reoccurrence of symptom of the mental illness.

Question 2.
What are the stigmas attached to mental illness?
Answer:
One of the major obstacles to getting help from a mental health professional is the stigma that is attached to mental illness. We fear things that we do not understand. In the same way, our lack of understanding of mental illness makes us fear it.
This lack of knowledge and awareness makes us-

1. Blame the individual, i.e., think that mental illness is a personal failing or weakness.
2. Think that mental illness is caused as punishment for our sins.
3. Think that the person is intentionally behaving in an inappropriate way.

Question 3.
Anxiety disrupts day to day functioning of an individual : State two predispositional factors contributing to anxiety.
Answer:
Anxiety that is excessive or persists after the anxiety creating situation has subsided leads to anxiety disorders such as phobias, acute stress disorder, etc.
Predispositional factors in anxiety are-

1. Genetic factors – if anyone in the family has anxiety issues, then the person will be at a higher risk of exhibiting high levels of anxiety as compared to other persons.
2. Childhood trauma such as physical or mental neglect or abuse, death of a loved one, parental divorce, etc.

Question 4.
Your friend confided in you that he is suffering from anxiety.
Suggest two self- help strategies to help him deal with this issue.
Answer:
The self help strategies that can be suggested to help him deal with excessive anxiety are-

1. Engage in some activity that he always wanted to pursue for e.g., pottery, writing, sketching or voluntary social service.
2. Indulge in physical activity like exercise, outdoor games or trekking.
3. Relaxation techniques like laughter therapy, meditation and breathing techniques.

3. Answer the following in 80 – 100 words based on the given points.

Question 1.
Explain the reasons why First Aid in Mental Health is required.
(a) Stigma associated with mental health
(b) Shame
(c) People do not always know how to respond
(d) People may not always seek professional help
Answer:
MHFA is an internationally recognized training programme whose objective is to teach people how to identify the signs and symptoms of mental health problems and to provide assistance on a first aid basis.
(a) Stigma associated with mental health:
Lack of understanding about mental illness makes us fear it. This lack of awareness leads us to blame the person for behaving inappropriately or showing personal failing.

(b) Shame:
Often, a person who has been diagnosed with a mental illness is ridiculed or blamed. He/she experiences shame, withdraws from social interaction and does not reach out to others or seek help. Hence, it is beneficial to show understanding and provide support.

(c) People do not always know how to respond:
Most people may not respond in an adequate way to a mentally ill person who reaches out to them. Sometimes, their advice/help may do more harm than good. However, MHFA programme can help friends/family to identify early signs of mental illness and help the person to get professional help.

(d) People may not always seek professional help:
The main reasons for this is-

1. Culture – Stigma attached to mental illness prevents people from seeking professional help as it may hurt the reputation of the family.
2. Advice from elders – A mentally ill person may incorrectly believe that advice of elders alone is sufficient to cure his illness.
3. Superstitions – If the person is convinced that his//her mental illness is caused due to sins/curses etc., they will not want to visit a mental health professional. Hence, they will be deprived of the benefits of early intervention.

Question 2.
Explain the ALGEE Model in your own words.
(a) Approach, Assess and Assist in any crisis
(b) Listen non-judgmentally
(c) Give support and information
(d) Encourage the person to get professional help
(e) Encourage self-help and other support strategies
Answer:
ALGEE is an action plan to carry out First Aid in Mental Health.
(a) Approach, Assess and Assist in any crisis – An attempt is made to understand the situation and observe if there are behavioural changes in the person whom we are concerned about.

(b) Listen non-judgmentally – We should listen to the other person without letting our opinions influence us. We should not judge/ criticise but listen with acceptance and empathy. It does not imply that we agree with what the other person is saying but it ensures that the person feels supported.

(c) Give support and information – This helps the person to feel more in control of the situation since they have emotional and informational support.

(d) Encourage the person to get professional help – Persons suffering from mental illness may hesitate to seek help due to lack of knowledge or due to stigma attached. Others may not know how to respond to someone showing ‘red flags’ of mental illness and may do more harm than good. Mental health professionals are trained to help the person to identify the problem and cope with the situation.

(e) Encourage self-help and other support strategies – Self-help strategies are tasks that help to increase our resources to deal with stress and to maintain mental health such as exercise, adequate sleep, having hobbies, etc.

Question 3.
Enumerate the various symptoms that are exhibited by an individual with anxiety disorders.
(a) Physical Symptoms
(b) Psychological Symptoms
(c) Behavioural Symptoms
Answer:
Anxiety is an emotion characterised by feelings of tension, hopelessness, etc. Excessive level of anxiety which persists even after the anxiety producing situation has gone away, can lead to anxiety disorders.
(a) Physical Symptoms

1. Heart palpitations and rapid heart rate
2. Shortness of breath
3. Dizziness or headaches
4. Restlessness, tremors and shaking

(b) Psychological Symptoms

1. Mind racing or going blank
2. Difficulty in concentration
3. Forgetfulness
4. Problems in decision making
5. Irritability, impatience and anger

(c) Behavioural Symptoms

1. Avoiding people and situations
2. Repetitive checking
3. Strong urge to escape the situation

Question 4.
Explain excessive dependence on the internet.
(a) Meaning
(b) Four C’s to identify excessive internet usage
(c) Red flags that indicate internet addiction.
Answer:
(a) Meaning
The amount of time as well as reason for using the internet may become a matter of concern for e.g., online gambling, gaming, etc. The person may socialise more online with friends than real life socialising. Spending excess time online may cause the person to neglect family, relationships, work etc. Virtual world enables games/gambling almost continuously. This leads to the person neglecting personal hygiene, real life relationships and become withdrawn and irresponsible. The person may feel guilty or defensive about internet use. He/ she may panic in the absence of internet service. A growing dependence on internet refers to an inability to stop and down down.

(b) Four C’s to identify excessive internet usage
Excessive internet usage is characterised by extensive, problematic addiction to the use of computer and internet. It signifies poorly controlled preoccupations or behaviour regarding such usage. Excessive internet usage leads to personal distress and social impairment.
The four C’s to identify excessive internet usage are as follows-

1. Craving – Do you have an intense desire to use the internet?
2. Control – Do you have an inability to control your self using the internet?
3. Compulsion – Do you find it difficult to stop using the internet? Even though you know you should not spend so much time on it?
4. Consequence – Have you ever experienced any physical or psychological ill effects as a result of excessive use of the internet? If you answer a ‘yes’ for at least three of the C’s, it can be a matter of concern.

(c) Red flags that indicate internet addiction
The Red Flags that indicate over dependence on internet are-

1. Feelings of euphoria while using the internet.
2. Physical symptoms like headache, dry eyes, etc.
3. Inability to keep to schedules and boredom with routine tasks.
4. Poor personal hygiene and nutrition to remain online.

4. Analysis the following case study.

Sujata is now a sad and lonely girl. She has cut off herself from all her relatives and family friends. She doesn’t participate in any college programmes nor family functions. She is mostly found in the library all by herself. She has lost her self-confidence. At home she prefers eating in the bedroom and mostly indulges in television or mobile activities. Apply the ALGEE model and help Sujata to evolve in her mental health.
Answer:
Sujata is showing symptoms of depression and anxiety such as sadness, withdrawing from family/ friends and social activities. The ALGEE model can be used.

1. Approach, assess and assist in any crisis – Behavioural changes are very noticeable in Sujata. I can voice my concern to the teachers/ counsellor of the school or to her family members.
2. Listen in a non-judgemental manner -1 will try to meet Sujata in the library or any place where she feels comfortable. I will explain my concerns to her about not interacting with others and overuse of mobile phones. I will listen patiently and compassionately.
3. Give support and information – Let Sujata know that she has emotional support of her friends. There is nothing to feel guilty or ashamed of. She should hence be forthcoming about her problems.
4. Encourage her to get professional help – I will encourage her to meet the college counsellor who will be able to help her professionally.
5. Encourage self-help strategies – This will help Sujata to regain control over her life. Some positive measures include breathing exercises, yoga, laughter therapy, etc.

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 6 Psychological Disorders Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Psychology Solutions Chapter 6 Psychological Disorders

1. (A) Choose the correct option and complete the following statements.

Question 1.
………………… is the present system for the classification of mental disorders.
(a) DSM-5
(b) WHO
(c) APA
Answer:
(a) DSM-5

Question 2.
Term Schizophrenia was first used by ………………
(a) Albert Ellis
(b) Eugene Bleuler
(c) John Travis
Answer:
(b) Eugene Bleuler

Question 3.
World Health Organization has developed …………….. for classification of all types of disorders.
(a) ICD
(b) DSM
(c) MCA
Answer:
(a) ICD

Question 4.
We find alternate phases of depression and mania in …………………. disorders.
(a) depressive
(b) bipolar
(c) anxiety
Answer:
(b) bipolar

(B). Match the pairs.

Question 1.

Group A	Group B
(1) Phobia	(a) 2013
(2) DSM-5	(b) Wellness
(3) ICD – 11	(c) Schizophrenia
(4) Eugen Bleuler	(d) 2019
(5) John Travis	(e) Illogical fear
(6) Depressive disorders	(f) Sad feelings for a long period of time

Answer:

Group A	Group B
(1) Phobia	(e) Illogical fear
(2) DSM-5	(a) 2013
(3) ICD – 11	(d) 2019
(4) Eugen Bleuler	(c) Schizophrenia
(5) John Travis	(b) Wellness
(6) Depressive disorders	(f) Sad feelings for a long period of time

(C) State whether the following statements are true or false.

Question 1.
Socially or culturally deviant behaviours are signs of psychological disorders.
Answer:
False

Question 2.
Schizophrenia is a serious psychological disorder.
Answer:
True

Question 3.
Feeling of hopelessness is one of the symptoms seen in depressive disorders.
Answer:
True

(D) Answer the following in one sentence each.

Question 1.
From which Latin word is the term anxiety derived?
Answer:
The word ‘anxiety’ is derived from the Latin word ‘Anxietas’ which means ‘uneasy or troubled mind’.

Question 2.
In which disorder does the person experience sadness and guilt for a long period of time?
Answer:
In a depressive disorder the person experiences sadness and guilt for a long period of time.

Question 3.
What do you call the fear that you experience unnecessarily in a non threatening situation?
Answer:
The fear that is experienced unnecessarily in a non threatening situation is called a phobia.

2. Answer the following questions Briefly.

Question 1.
Explain the nature of psychological disorder.
Answer:
The major criteria of abnormality or psychological disorders are deviance, personal distress and impaired functioning. Illness and absence of illness are not distinct categories but are on opposite poles of the continuum sequence as explained below.

Stage 1 – The person is physically and psychologically healthy. They are motivated and emotionally stable.
Stage 2 – The person may get affected by life stressors, feel anxious, lack energy, etc. For e.g., before an examination. It is possible to push oneself back towards positive health by adopting a healthy lifestyle.
Stage 3 – The person shows signs of psychological damage and experience negative feelings like sadness, lack of motivation, fear and may even indulge in addictive behaviour. However, even this stage is not irreversible.
Stage 4 – The person exhibits extreme distress, impairment in mental, emotional and social functioning. He/She needs professional treatment.

Question 2.
What is meant by Anxiety disorders?
Answer:
The word ‘anxiety’ is derived from the Latin word ‘Anxietas’ which means ‘uneasy or troubled mind’. Anxiety refers to a condition in which the person feels worried and uneasy for a long time for no obvious reasons. Anxiety disorders include disorders in which anxiety is the main symptom or is experienced when an attempt is made to modify some maladjustment. The main anxiety disorder are Generalised Anxiety disorder, Phobic disorder. Panic disorder, O. C. D, etc.

Question 3.
Narrate indicators of psychological disorders.
Answer:
According to DSM-5, there are five criteria (indicators) for psychological disorders.

1. Clinically significant syndrome – In psychological disorders, there should be a cluster of symptoms together i.e., a syndrome.
2. Distress and Impairment – There should be distress, i.e., psychological pain due to negative feelings and stress, as well as impairment, i.e., inability to perform appropriate roles in personal and social situations.
3. Dysfunction – If the symptoms lead to developmental or psychological dysfunctions, it signifies mental disorders.
4. Responses to stressors that are normally accepted responses e.g., sadness experienced at the loss of a loved one or culturally sanctioned responses are not considered as signs of mental disorders.
5. Behaviour which is only deviant but does not produce any disability/ distress/ dysfunction
   does not become a sign of mental disorder.

Question 4.
What is meant by bipolar disorder?
Answer:
Bipolar Disorder is also known as Manic Depressive disorder. The person experiences alternate phases of two states viz. mania and depression. Mania includes symptoms such as high energy, excitement, reduced need for sleep and loss of touch with reality, impulsivity, delusion, etc. Depressive state symptoms include low energy and motivation, loss of interest in daily activities, extreme sadness, apathy, feeling of hopelessness, fatigue, guilt, etc. Main causative factors are genetic factors, imbalance in neurotransmitters such as dopamine and epinephrine; environmental factors such as traumatic event.

Question 5.
Describe Post Traumatic Stress Disorders?
Answer:
If the symptoms of Acute Stress Disorder (ASD) continue for more than one month with the same intensity, the person is diagnosed with PTSD. A person who has suffered trauma goes through three stages viz-

1. Shock stage – the individual is in shock, i.e., extremely disturbed.
2. Suggestible stage – he/she may seek guidance from others and may either accept these suggestions unquestioningly or may get extra sensitive.
3. Recovery stage – the person shows signs of recovery.

However, some persons still show signs of mental illness i.e., PTSD.
The symptoms of PTSD include

1. nightmares, flashbacks, severe anxiety
2. hyper vigilance and avoidance of situations that bring back the trauma
3. irritability, social isolation
4. survivour’s guilt

3. Explain the Following concepts.

Question 1.
DSM-5
Answer:
Presently, the two major systems of classifying psychological disorders are DSM and ICD. Diagnostic and Statistical Manual for Mental Disorders (DSM) was published in its first version by the APA in 1952, i.e., DSM-I. In 2013, the DSM-5 was introduced which contains 22 broad categories of mental disorders with subcategories. It is the classification of officially recognized psychiatric disorders, for e.g., categories in DSM-5 include anxiety disorders, obsessive-compulsive and related disorders and personality disorders.

Question 2.
ICD 11
Answer:
Presently, the two major systems of classifying psychological disorders are DSM and ICD. The International Classification of Diseases and Related Health Problems (ICD) was created by the WHO for documenting all types of diagnoses, diseases, signs and symptoms and social circumstances. It contains a section on psychological disorders. The latest, 11th version of ICD was presented in 2019. According to the ICD-11, there are 19 broad categories of mental disorders, most of which overlap with DSM-5.

Question 3.
Phobia
Answer:
The main anxiety disorders include phobic disorders and generalized anxiety disorders. The word ‘phobia’ is derived from the Greek word ‘phobos’ which was used to refer to the God of Fear. A phobia is an intense, persistent but irrational and disproportionate fear of a specific object or situation. DSM classifies phobias as simple phobias, e.g., Acrophobia, Claustrophobia etc., and social phobias, e.g., fear of speaking or eating in public. The phobic object e.g., animals or situations e.g., elevators, almost always provide immediate anxiety.

Question 4.
Syndrome
Answer:
A syndrome refers to a cluster or collection of symptoms and signs that are characteristic of a diseases or disorder, e.g., Down’s syndrome. It is a group of symptoms which consistently occur together and indicate a particular condition. A syndrome refers to a set of symptoms that tend to occur together and can be associated with a particular physical or mental disorder. In psychological disorders, one of the criteria as suggested by DSM-5 is clinically significant syndrome.

Question 5.
Hallucination
Answer:
Hallucinations are false perceptions in the absence of appropriate stimuli. Hallucinations are a symptom of schizophrenia and other mental disorders. Commonly occurring hallucinations are visual, auditory, tactile, gustatory and olfactory in nature. For e.g., the person may hear voices telling him to do something. Hallucinations are also noticed due to substance abuse, medications, epilepsy, etc.

4. Write short notes on the following.

Question 1.
Nature of mental wellness
Answer:
According to the WHO, mental wellness refers to “a state of well-being in which the individual realizes his or her own abilities, can cope up with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to his or her community.”
The important aspects of mental wellness are –

1. Emotional aspect – There is a sense of well-being and contentment
2. Psychological aspect – There is high self esteem and tendency of self actualization.
3. Life philosophy – There are clear goals and objectives in life.

The Illness Wellness Continuum Model by John Travis

Quadrant 1 – The person is in an ideal state of functioning.
Quadrant 2 – Thepersonhasnomentalillnessbutexperiencessubjectivefeelingofunhappiness.
Quadrant 3 – The person suffers from mental illness yet he/she experiences a high sense of subjective well-being.
Quadrant 4 – This is the lowest level of functioning. The person has mental illness and also experiences distress.

Question 2.
Drug addiction
Answer:
Addictive disorders refer to the physical and psychological inability to stop consuming some substance or indulging in some activity although it is harmful. This includes dependence on drugs, nicotine, alcohol, etc., or activities like gambling, eating, gaming etc. Drug addiction refers to an inability to control the use of alcohol, nicotine, narcotics, marijuana, medications, etc.
Symptoms of addiction are-

1. Excessive consumption of drugs or alcohol and inability to reduce the dosage.
2. In case the person tries to stop the drug use, then withdrawal symptoms occur which include sweating, tremors, muscle pain, goosebumps, etc.
3. Physical and psychological dependence may lead to drug abuse or overdose of the addictive substance and even death of the person.
4. The person’s physical, emotional, social and financial well-being break down.

Alcoholics Anonymous (AA), Narcotics Anonymous (NA) are organizations that help addicts to overcome dependence.

Question 3.
Depressive disorders
Answer:
Depression is an emotional state typically marked by sadness and guilt, feelings of anxiety and hopelessness. Other symptoms include loss of appetite, interest and sleep, fatigue, sexual dysfunction and suicidal thoughts. Depression is associated with distractability, memory loss, neglect of personal hygiene, panic attacks and even substance abuse. Children may experience symptoms such as irritability, feelings of incompetence, difficulty in concentration, difficulty in sleeping, digestive problems etc.

Question 4.
Anxiety disorders
Answer:
The word ‘anxiety’ is derived from the Latin word ‘Anxietas’ which means ‘uneasy or troubled mind’. Anxiety refers to a condition in which the person feels worried and uneasy for a long time for no obvious reasons. The main anxiety disorders are.
(i) Generalized Anxiety Disorder – The person frequently experiences anxiety more intensely so that it starts interfering with the ability to perform daily tasks. Symptoms include irritability, headaches, insomnia, dizziness, breathlessness, etc.

(ii) Phobic disorders – The word ‘phobia’ is derived form the Greek word ‘phobos’ which was used to refer to the God of Fear. A phobia is an intense, persistent but irrational and disproportionate fear of a specific object or situation. DSM classifies phobias as simple phobias, e.g., Acrophobia, Claustrophobia etc., and social phobias, e.g., fear of speaking or eating in public.

5. Answer the following questions in 150 – 200 words.

Question 1.
Describe the criteria of psychological disorders.
Answer:
The major criteria of abnormality are deviance, personal distress and impaired functioning. Illness and absence of illness are not distinct categories but are on opposite poles of the continuum sequence as explained below.

Stage – 1: The person is physically and psychologically healthy. He/She are motivated and emotionally stable.
Stage – 2: The person may get affected by life stressors, feel anxious, lack energy, etc., for e.g., most students are tense before the exams. It is possible to push oneself back towards positive health by adopting a healthy lifestyle.
Stage – 3: The person shows signs of psychological damage and may experience negative feelings like sadness, lack of motivation, fear and may even indulge in addictive behaviour. However, even this stage is not irreversible.
Stage – 4: The person exhibits extreme distress, impairment in mental, emotional and social functioning. He/She needs professional treatment.

Psychological disorders are also called mental disorders. These are patterns of behavioural or psychological symptoms that impact multiple areas of life and create distress for the person.

According to DSM-5, there are five criteria for psychological disorders.

1. Clinically significant syndrome – In psychological disorders, there should be a cluster of symptoms together i.e., a syndrome.
2. Distress and Impairment – There should be distress, i.e., psychological pain due to negative feelings and stress, as well as impairment, i.e., inability to perform appropriate roles in personal and social situations.
3. Dysfunction – If the symptoms lead to developmental or psychological dysfunctions, it signifies mental disorders.
4. Responses to stressors that are normally accepted responses e.g., sadness experienced at the loss of a loved one or culturally sanctioned responses are not considered as signs of mental disorders.
5. Behaviour which is only deviant but does not produce any disability/ distress/ dysfunction does not become a sign of mental disorder.

Question 2.
Narrate any two psychological disorders in detail.
Answer:
Psychological disorders are also called mental disorders. These are patterns of behavioural or psychological symptoms that impact multiple areas of life and create distress for the person.
According to DSM-5, there are five criteria for psychological disorders are:

1. Clinically significant syndrome – In psychological disorders, there should be a cluster of symptoms together i.e., a syndrome.
2. Distress and Impairment – There should be distress, i.e., psychological pain due to negative feelings and stress, as well as impairment, i.e., inability to perform appropriate roles in personal and social situations.
3. Dysfunction – If the symptoms lead to developmental or psychological dysfunctions, it signifies mental disorders.
4. Responses to stressors that are normally accepted responses e.g., sadness experienced at the loss of a loved one or culturally sanctioned responses are not considered as signs of mental disorders.
5. Behaviour which is only deviant but does not produce any disability/ distress/ dysfunction does not become a sign of mental disorder.

(A) Anxiety Disorders – The word ‘anxiety’ is derived from the Latin word ‘Anxietas’ which means ‘uneasy or troubled mind’. Anxiety refers to a condition in which the person feels worried and uneasy for a long time for no obvious reasons.
The main anxiety disorders are-
(i) Generalized Anxiety Disorder – The person frequently experiences anxiety more intensely so that it starts interfering with the ability to perform daily tasks. Symptoms include irritability, headaches, insomnia, dizziness, breathlessness, etc.

(ii) Phobic disorders – The word ‘photjia’ is derived form the Greek word ‘phobos’ which was used to refer to the God of Fear. A phobia is an intense, persistent but irrational and disproportionate fear of a specific object or situation. DSM classifies phobias as simple phobias, e.g., Acrophobia, Claustrophobia etc., and social phobias, e.g., fear of speaking or eating in public.

(B) Trauma Trauma and Stress-Related Disorders
Stress is inevitable in life. Daily hassles, relationship issue, frustration, chronic illness, etc., lead to stress. If stress is in moderate intensity, it acts as a motivation. However, intense prolonged stress impairs normal functioning of the individual and may lead to stress disorders.
The two types of stress disorders are-
1. Acute Stress Disorder (ASD)
If a person (aged 6 years and above) has experienced extremely stressful situations like death of a loved one, serious disease or injury, sexual abuse, natural disasters, etc., then he/she may experience ASD. The symptoms of ASD include-

• emotional numbness and instability
• nightmares and sleep disturbances
• insomnia, lack of concentration, irritability and guilt feelings
• depression

2. Post Traumatic Stress Disorder (PTSD)
If symptoms of ASD continue for more than one month with the same intensity, the person is diagnosed with PTSD. A person who has suffered trauma goes through three stages viz.

• Shock stage – the individual is in shock, i.e., extremely disturbed.
• Suggestible stage – he/she may seek guidance from others and may either accept these suggestions unquestioningly or may get extra sensitive.
• Recovery stage – the person shows signs of recovery.

However, some persons still show signs of mental illness i.e., PTSD.

Question 3.
What is Schizophrenia? Describe the major symptoms of it.
Answer:
The term ‘Schizophrenia’ is derived from Greek words Schizein (to split) and phren (mind). Thus, the literal meaning of the word ‘schizophrenia’ is split mind. The term ‘schizophrenia’ was coined in 1911 by a Swiss psychologist, Paul Eugene Bleuler. Schizophrenia is a psychotic disorder.
According to DSM-5 the two types of symptoms for schizophrenia are-
(a) Positive symptoms are an excess addition to normal thoughts or behaviour of the period. Such symptoms are-

1. hallucinations – mainly auditory and visual hallucination
2. delusions – mainly of grandeur, reference and persecution
3. disorganized thought and speech
4. bizarre body movements and disorganized behaviour
5. incongruent affect.

(b) Negative symptoms are deficits of normal emotional responses or of thought processes. They lead to low level of functioning and may not improve much even with treatment. This includes-

1. emotional blunting – diminished emotional expression
2. anhedonia – inability to experience deep positive emotions
3. alogia – diminished speed
4. asociality – lack of desire to form relationships
5. avolition – lack of motivation
6. apathy.

Sometimes, a schizophrenic exhibits positive as well as negative symptoms.

Class 12 Psychology Chapter 6 Psychological Disorders Intext Questions and Answers

ACTIVITIES (Textbook Page. No. 62)

Activity 1

On the basis of your understanding of various criteria for abnormality, which of these would you consider as normal or abnormal behavior?

1. Hemant wears the same lucky blue shirt for all his major competitive exams.
2. Seema is not able to fall asleep easily.
3. Rakesh throws pillows and pounding fists on the wall during arguments if he finds himself losing ground.
4. Reena always experiences fear but is not able to specify what is so scary.

Answer:
All the stated examples show at least one of the five criteria for abnormality.

1. Hemant seems superstitious and lacks confidence. He appears moderately healthy.
2. Seema exhibits personal distress and signs of sleep disorders.
3. Rakesh exhibits clear symptoms of abnormal behaviour and seems extremely unhealthy mentally.
4. Reena seems to have anxiety disorder and may need professional help.

Activity 3 (Textbook Page. No. 67)

In which Quadrants of wellness illness continuum will you place Karan, Lalita, Pramila and Santosh?
Answer:
Karan – Quadrant 2, Pramila – Quadrant 3, Lalita – Quadrant 4, Santosh – Quadrant 3.

Activity 5 (Textbook Page. No. 68)

Collect information about Anxiety disorders and discuss this with your friends or parents.
Answer:
Anxiety disorders are characterised by feelings of worry and restlessness that tend to interfere with daily activities. Besides generalized anxiety disorder and phobia which are explained in the chapter, anxiety disorders includes Panic disorder, Obsessive-Compulsive disorder (OCD) and Social Anxiety disorders include disorders in which anxiety is the main symptom or is experienced. When an attempt is made to modify maladjustment.

Activity 6 (Textbook Page. No. 69)

Collect information about other types of phobia.
Answer:
A phobia is a persistent, irrational fear of a situation or object. Phobias are of three types viz. Social phobia (fear of social situations); specific phobias (fear of particular situations) and agoraphobia (fear of being alone in public places from which there is no easy escape). Some phobias are:

1. Claustrophobia (fear of enclose spaces)
2. Acrophobia (fear of heights)
3. Homophobia (fear of blood)
4. Zoophobia (fear of animals)
5. Arachnophobia (fear of spiders)
6. Pyrophobia (fear of fire)
7. Trypanophobia (fear of needles and injections)
8. Xenophobia (fear of foreigners or strangers)

Activity 7 (Textbook Page. No. 71)

We make use of various strategies to reduce our stress. Speak to five of your friends and make a list of atleast ten different strategies used by them to reduce stress. Share it with your group and discuss which are healthy and which are unhealthy.
Answer:
Some strategies to reduce stress are-

1. Negative coping such as use of alcohol/drugs, over eating, agression, etc.
2. Exercise
3. Developing a hobby
4. Indulging in some constructive activity
5. Following relaxation/meditation techniques
6. Seeking social support, i.e., of friends/ family, etc.
7. Having proper time management
8. Developing rational thinking and positive attitude
9. Indulging in self care, e.g., proper diet, rest, etc.
10. Seeking professional help if needed

Activity 9 (Textbook Page. No. 74)

Identify from the internet the red flags (signaling symptoms) for various disorders that you have already studied.
Answer:
Red flags for the following disorders.
(1) Phobias

• Displaying extreme nervousness or distress when in the presence of the source of the phobia
• Avoidance behaviour
• Refusal to face certain situations

(2) Depression

• Irritability, moodiness and agitation.
• Inability to concentrate
• Unexplained aches and pains
• Disruptions in sleep habits
• Changes in appetite and eating habits
• Suicidal thoughts.

(3) Bipolar disorder

• Change in thought processes, and concentration
• Change in sleep patterns
• Change is social interaction
• Uncharacteristic moodiness

(4) PTSD

• Persistent negative thoughts
• Trouble in concentration
• Irritability and aggression
• Engaging in reckless behaviour
• Changes in sleep and appetite
• Loss of interest in friends/family/favourite activities.

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 5 Emotions Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Psychology Solutions Chapter 5 Emotions

1. Choose the correct option and complete the following statements.

Question 1.
…………… is a combination of bodily arousal, expressive behaviour, thoughts, and feelings.
(a) Response
(b) Reaction
(c) Emotions
Answer:
(c) Emotions

Question 2.
According to James Lange we first experience ……………….. then emotions.
(a) physical arousal
(b) feelings
(c) thoughts
Answer:
(a) physical arousal

Question 3.
Emotion is used as a …………….. to control others.
(a) weapon
(b) measure
(c) opportunity
Answer:
(a) weapon

Question 4.
When you allow another person to exploit you, you are a victim of ………….. abuse.
(a) physical
(b) emotional
(c) social
Answer:
(b) emotional

Question 5.
Exercising releases ………………… which makes you feel good as a stress buster.
(a) endorphins
(b) thyroxin
(c) insulin
Answer:
(a) endorphins

2. Identify the odd items from the following and write a suitable reason for your choice

Question 1.
admiration, disgust, acceptance, trust

Question 2.
kicking, ignoring, shoving, screaming

Question 3.
Reassess, React, Respond, Relax

Question 4.
meditation, social work, compassion, engage in hobbies

3. Match the pair.

Question 1.

Group A	Group B
(1) Happiness	(a) basic emotion
(2) Paul Ekman	(b) fight and flight
(3) Anger	(c) surprise
(4) Fear	(d) sadness
(5) Grief	(e) triggers
(6) Anger management technique	(f) powerful emotion

Answer:

Group A	Group B
(1) Happiness	(c) surprise
(2) Paul Ekman	(a) basic emotion
(3) Anger	(f) powerful emotion
(4) Fear	(b) fight and flight
(5) Grief	(d) sadness
(6) Anger management technique	(e) triggers

4. State whether the following statements are true or false.

Question 1.
Emotional well-being is not easily observable.
Answer:
True

Question 2.
Positive emotions energise you.
Answer:
True

Question 3.
You should feel guilty for standing up for yourself.
Answer:
false

Question 4.
Anger is a basic negative emotion.
Answer:
True

5. Answer the following questions in 35 – 40 words each.

Question 1.
Explain the term facial feedback hypothesis.
Answer:
According to the facial feedback hypothesis, our facial expressions provide feedback to our brain about our emotions. Facial expressions are not only the result of our emotions, e.g., smiling in happiness, but they are also capable of influencing emotions, e.g. laughter can actually make us feel happier. The same might hold true for other emotions as well. In the 1840’s, William James presented the idea that awareness of our bodily experiences is the basis of emotion.

Question 2.
When does an individual face social rejection?
Answer:
Social rejection occurs when an individual is deliberately excluded from a social relationship or interaction. This can be done by a person or a group. It includes rejection of the person by family/ peers/ colleagues or even in intimate relationships. Rejection may be active, i.e., by ridiculing, bullying, etc., or passive, i.e., ‘silent treatment’. Social rejection may be faced due to individual differences e.g., attractiveness, shyness or due to intergroup exclusion on the basis of prejudice, e.g., in case of Dalits or ethnic minorities.

Question 3.
With the help of an example write the non-verbal triggers of anger.
Answer:
Anger is a common emotion that everybody experiences in life from time to time. Anger is a normal response to some real or perceived threat. It is a protective emotion that help us to defend ourselves against physical or psychological harm.

Triggers of Anger refer to any event that signals the brain to activate the body’s anger system. The triggers of anger may be (i) verbal, for e.g., being blamed, disrespected or abused (ii) non¬verbal, for e.g., being ignored unappreciated or rejected, (iii) physical such as physical threats, sexual/ physical assault, etc.

Non-verbal triggers of anger are feelings of being neglected, disregarded, disappointed, unloved or frequently spurned. It is expressed through gestures such as pointing a finger, shrugging the shoulders; by facial expressions such as sneering, frowning and also by behaviours such as groaning/sighing/whining or speaking in a mocking tone.

There are three factors involved in the experience of anger : A trigger (causes of anger) → individual’s personality → particular interpretation of that situation.

Question 4.
What are the aspects of emotional well-being?
Answer:
Emotional well-being means managing our emotions, both positive and negative ones, so that we can lead a healthy and productive life. It is the absence of negative affect as well as general satisfaction with life. A person who experiences emotional well-being is positively engaged with the world.
The aspects of emotional well-being are at three levels viz. physical, emotional and social.

1. Physical level, i.e., well balanced diet, exercise.
2. Emotional level, i.e., practise mindfulness, raising levels of motivation and optimism.
3. Social level, i.e., engaging in prosocial behaviour, meaningful relationships.

6. Compare and Contrast

Question 1.
Happiness and Sadness

Question 2.
James Lange theory and Cannon Bard’s Theory

7. Write short notes on the following in 50 – 60 words each.

Question 1.
Measures of dealing with Emotional Abuse
Answer:
Emotional abuse is any kind of abuse that is emotional rather than physical in nature. It occurs when one person subjects or exposes another person to intentionally harmful behaviour that may result in anxiety, depression and psychological trauma to the victim.
The types of emotional abuse may be-

1. verbal abuse such as blaming, insulting, labeling, threatening, swearing, etc.
2. non verbal abuse such as ignoring, rejection, bullying, spying, etc.

The most important technique is to break the silence and stand up for yourself.

1. Accept that emotional abuse is not because of you, i.e., don’t justify the actions of the abuser.
2. Respond assertively to the abuser but seek distance from him.
3. Give yourself time to heal.
4. Prioritize your self-care, e.g., eating right, exercise, etc.
5. Mobilise support from family and friends. If needed, seek professional help.

Question 2.
Plutchiks’s Model of Emotions
Answer:

Robert Plutchik presented the wheel of emotions,

1. there are 8 basic emotions viz. joy, trust, fear, surprise, sadness, anticipation, anger and disgust.
2. each primary emotion has its polar opposite such as fear is opposite of anger.
3. primary emotions combine to produce complex emotions, for e.g., love (complex) is a combination of joy and trust.
4. intensity of emotions increases as we move toward the centre and decreases as we move outward. For e.g., apprehension (weak) → fear (basic) → terror (strongest).

This model is important from the perspective of emotional literacy, i.e., understanding emotional levels, complexity and change as well as appropriate emotional labelling

Question 3.
Anger -A powerful emotion
Answer:
Anger is a common emotion that everybody experiences in life from time to time. Anger is a normal response to some threat. It is a protective emotion that helps us to defend ourselves against physical/ psychological harm. However, anger may also be unwanted, irrational and destructive. When we experience anger, our amygdala goes into action and overrides the cerebral cortex which is in control of thinking and evaluation. Triggers of anger refer to any event that signals the brain to activate the body’s anger system. The triggers may be (i) verbal, for e.g., being blamed, disrespected or abused (ii) non-verbal, for e.g., being ignored unappreciated or rejected, (iii) physical such as physical threats, sexual/ physical assault, etc.

There are three factors involved in the experience of anger: A trigger (causes of anger) → individual’s personality → particular interpretation of that situation. As the experience of anger is subjective, it can be controlled too. If we understand the triggers of anger, we can anticipate potential anger episodes and provide an intentional/ acceptable response such as it may energize us towards solving problems. As anger is a powerful emotion, it must be kept in check to avoid it’s destructive out comes.

Question 4.
Managing Emotions
Answer:
The word emotion is derived from the latin word ‘emovere’, which means to stir up or to move. An emotion refers to an involuntary, aroused state of an organism involving physical, cognitive and behavioural components. It is described as a combination of bodily arousal, e.g., increased heartrate, thoughts and feelings, i.e. emotional tone and expressive behaviour, i.e., facial expression.

Managing of emotions is an important life skill. Managing emotions can be defined as, ‘the ability to be open to feelings and modulate them in oneself and in others, so as to promote personal understanding and growth. It is the ability to be aware and constructively handle both positive and challenging emotions.

Sometimes, our emotions hijack our thinking due to which we act impulsively. This is because the limbic system (emotional section) developed before the prefrontal cortex (thinking part) and is hence, an extremely strong part of the brain. Emotional management is an art as it is a form of expression as well as a science as it is a skill that needs to be learnt and practiced If a person ignores of suppresses his/her emotions it leads to anxiety. The best way of manage emotions is to acknowledge the emotions, find out what is the cause of that emotion in you, chose how to respond in that situation.

Question 5.
Benefits of Emotional Well-being
Answer:
Emotional well-being means managing our emotions, both positive and negative ones, so that we can lead a healthy and productive life.
Persons who have high emotional well-being experience benefits such as- (i) better able to deal with stress (ii) better self-regulation (iii) increased productivity in tasks undertaken (iv) increased creativity (v) life satisfaction due to meaningful activities and relationship.

1. Coping with stress – It helps to deal with stress using healthy methods such as exercise, social support, etc.
2. Better self-regulation – It enables the person to label how they feel and accept negative emotions life fear, anger, etc.
3. Increases productivity in tasks undertaken – The ability to focus is enhanced, the person feels positive and energized.
4. Increases creativity – The person indulges in divergent thinking, shows curiosity is open to new experiences.
5. Life satisfaction – The individual is able to have meaningful interactions and relationships, show empathy, altruism and engage in activities like volunteer work.

8. Answer the following 50 – 60 words.

Question 1.
Using the 3 R model of Anger Management present a case study of your own experience.
Answer:
Anger management is an intervention programme to prevent anger from turning into a habit or obstacle. It enables the person to create an awareness of and responsibility for his/her emotions. This involves two aspects (i) managing one’s own anger (ii) learning to respond effectively to anger in others.

The 3 R’s in anger management a Relax, Reassess and Respond.
1. Relaxation – Relaxation and connection with the inner self helps to enhance thinking and concentration so that we ‘respond’ rather than ‘react’ impulsively.
2. Reassess – This helps the person to revisit the situation objectively. It involves

• taking complete responsibility for your emotion
• developing empathy for the person you perceive has wronged you
• conduct a reality check e.g., is your anger justified given the facts of what happened.

The feeling’s thermometer helps to focus on the extent of anger we are experiencing and helps in the process of reassessment.

3. Respond – It entails re-engaging with the other person/situation. Responding involves

• consulting a trustworthy person to get another perspective
• engage in talks with the other party in a calm respectful manner with a willingness to sort out the situation.
• active listening and assertive speaking – Allow the person to express their viewpoint. However, we should stand up for our feeling while exhibiting the same for the other person. The right approach is a practical, positive communication style.
• cage your rage i.e. establish boundaries and moderate your anger – We must guard against escalation of our own anger which may lead us to provoke the other person. Moderation of anger and establishing clear boundaries of interaction with each other is essential.

CASE STUDY – 1 was in the passenger seat and my brother was driving the car. Suddenly, a cyclist swerved right in front after he had failed to observe the red light. This led me to get enraged at this uncalled-for action. Using the 3R technique. I tried to breathe for a few seconds to give me recovery time, i.e. Relaxation. I revisited the situation – Is my anger justified? Was it a genuine error? Is the cyclist hurt? Did the incident cause injury to us or damage to the car.? Is the anger worth my time/effort? Reassess. I allowed my elder brother to handle the situation but also assertively cautioned the teenage cyclist about the dangers of riding in a rash manner, i.e. Respond.

Question 2.
How does the brain work when angry?
Answer:
Anger is a common emotion that everybody experiences in life from time to time. Anger is a normal response to some threat. It is a protective emotion that help us to defend ourselves against physical/ psychological harm. However, anger may also be unwanted, irrational and destructive. When we experience anger, our amygdala goes into action and overrides the cerebral cortex which is in control of thinking and evaluation.

Triggers of anger refer to any event that signals the brain to activate the body’s anger system. The triggers may be (i) verbal, for e.g., being blamed, disrespected or abused (ii) non-verbal, for e.g., being ignored unappreciated or rejected, (iii) physical such as physical threats, sexual/ physical assault, etc.

There are three factors involved in the experience of anger: A trigger (causes of anger) → individual’s personality → particular interpretation of that situation. As the experience of anger is subjective, it can be controlled too. If we understand the triggers of anger, we can anticipate potential anger episodes and provide an intentional / acceptable response.

The emotional center of the brain is the Limbic system and is more primitive than the cerebral cortex. It is located in the lower section of the brain. Hence when a person is experiencing and expressing anger, he or she is not using the cortex (thinking section) but primarily functioning from the limbic system. In the limbic system, a small structure called Amygdala which is a storehouse of emotional memories plays an important role in the emotional outbursts. The data coming in from the world around us passes through the amygdala where the decision is made whether to send the data to the limbic or cortex area of the brain.

If the incoming data triggers enough of an emotional charge, the amygdala can override the cortex, which means the data will be sent to the limbic system causing the person to react using the lower part of the brain. During an overriding event, the amygdala goes into action without much regard for the consequences (since this area of the brain is not involved in judging, thinking, or evaluating).

Eg. You are waiting patiently in the queue at the bank, a person comes and cuts the line and moves ahead of you, you scream at them and ask them to go back. On an average, it can take 20 minutes for a person who has experienced an angry state of arousal to calm, to move from functioning from the emotional area to the thinking area of the brain.

Question 3.
After having realised you are emotionally abused by your best friend, write the steps you will take to deal with it.
Answer:
Emotional abuse is any kind of abuse that is emotional rather than physical in nature. It occurs when one person subjects or exposes another person to intentionally harmful behaviour that may result in anxiety, depression and psychological trauma.
The types of emotional abuse may be (i) verbal abuse such as blaming, insulting, labeling, threatening, swearing, etc. (ii) non verbal abuse such as ignoring, rejection, bullying, spying, etc. Some of the techniques to deal with emotional abuse are-

1. Accept that emotional abuse is not because of you i.e. don’t justify the actions of the abuser.
2. Respond assertively to the abuser but seek distance from him/her.
3. Give yourself time to heal.
4. Prioritize your self-care, e.g., eating right, exercise, etc.
5. Mobilise support from family and friends. If needed, seek professional help.

If I realize that I have been emotionally abused by my good friend I will adopt the following steps-

1. Disengage from the friendship and set personal boundaries
2. Understand that I am not the cause of abuse and so respond assertively to the abuser
3. Practice self care and give myself time to heal
4. If necessary seek guidance from other friends or my family / teachers.

9. Analyse the situations presented below and
a. Write the Emotion/s you experience.
b. What will be your response to this situation?

Question 1.
Anish was scolded by his boss. He came home and in a fit of rage hit his son. You are Anish’s friend who witnessed this outburst.
Answer:
I will feel anger as well as disgusted on witnessing this outbust. I will try to calm Anish and make him realise the harm that his anger can cause.

Question 2.
You helped your friend with study notes during his illness. But when your friend got better he did not respond nor show any sense of appreciation.
Answer:
I will feel disappointment as well as sadness. I will meet the friend and tell him that his lack of courtesy has hurt me.

Question 3.
Though you are a good friend of Anushka, she has not invited you to her new year’s party.
Answer:
I will feel disappointed and hurt. I will (if possible) try to find out if the action was deliberate or an oversight.

Question 4.
It’s your Birthday and you wake up that morning to find yourself surrounded with beautiful gifts.
Answer:
I will obviously feel immense happiness.

Question 5.
You have had a hectic day at college when you come home you find the door locked. You forgot your keys at home that day and your parents have not informed you of their plans.
Answer:
I will be angry at my at myself and my parents also. But since I forgot the keys, I will take full responsibility and wait it out some family member returns.

Question 6.
You have planned a surprise day out for your best friend and she tells you she is not interested and has other plans
Answer:
I will be a little sad and disappointed but will accept my friend’s decision sportingly.

Class 12 Psychology Chapter 5 Emotions Intext Questions and Answers

ACTIVITIES (Textbook Page. No. 44)

Activity 1

THINK AND ANALYSE
Think of the following situations and note down what will be the experience of each person in that situation.

1. It’s Mira’s Std. 12th result today. She comes to know that she has topped in the college.
2. Rahul’s mother passed away just few days before his 18th birthday.
3. Suchita was ridiculed by her classmate for wearing old fashioned clothes.
4. Yash had a fight at home because his parents were not allowing him to go for a late night party.

Answer:

1. Mira will experience happiness due to her success.
2. Rahul will experience grief and loneliness.
3. Suchita will experience a sense of helplessness and shame.
4. Yash will be angry with his parents and feel they are doing him an injustice.

Activity 2 (Textbook Page. No. 46)

Observe each figure carefully and write the emotion that corresponds to each in the blank spaces provided below. Can you identify which among these is a positive and negative emotion?

Answer:
(A) = Surprise (positive), (B) = Anger (negative), (C) = Disgust (negative), (D) = Sadness (negative),
(E) = Joy (positive), (F) = Fear (negative).

Activity 3 (Textbook Page. No. 46, 47)

Check whether you can name the emotions accurately from the following examples-

1. It’s Riya’s 18th birthday today and her friends have given her a surprise party.
2. Rohan recently had a break up with his long time girlfriend with whom he was in love deeply.
3. Sameer had a disagreement with his best friend over where to go for a picnic and the situation got heated up.
4. Sumi has come to know that she has failed in her exam and she is figuring out how she will convey this to her parents.
5. Ashmeet suddenly saw his school best friend across the street after many years.
6. Amy opened today’s newspaper and read the news of a 5 year old getting gang raped.

Answer:

1. Happiness
2. Surprise
3. Anger
4. Fear
5. Surprise
6. Disgust

Activity 4 (Textbook Page. No. 48)

THINK, REFLECT, ANALYSE AND DISCUSS
State what will you feel and how will /did you behave in the given following situations:-

1. You are crossing the road and suddenly find a car breaking the signal and speeding up towards you.
2. You reach home and find the table laid with your favourite dish cooked by your mother.
3. You receive a phone call telling you that your best friend is undergoing an operation and needs blood.
4. Recall an incident in your childhood when you were insulted by an adult.

Answer:

1. I will feel angry but also afraid. I will jump out of the way
2. I will feel happy and surprised.
3. I will fear but feel concerned and be motivated to arrange for the blood.
4. Students are expected to answer this question by themselves.

Activity 5 (Textbook Page. No. 49)

THINK, ANALYSE AND ACT

You see a snake ….. with reference to the above given components fill the process with your interpretations, feelings and actions.
Answer: