Answer to MTP_Intermediate_Syllabus 2016_june2020_Set2

Paper 6- LAWS AND ETHICS

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Answer to MTP_Intermediate_Syllabus 2016_june2020_Set2

Paper 6- Laws and Ethics

Full Marks : 100 Time allowed: 3 hours

Section - A

1. Answer the following questions

(a) Multiple choice questions: [10x1=10]

(i) Gratuity is payable to an employee-

(a) Retrenchment
(b) Retirement
(c) Both (a) & (b)
(d) None of the above

(ii) No adult worker shall be allowed to work in a factory for more than ________
hours in any day.
(a) 6
(b) 7
(c) 8
(d) 9

(iii) Which of the one is not LLP?

(a) Corporate sole
(b) LLP registered under LLP ACT
(c) LLP incorporated outside India
(d) Company registered outside India

(iv) The liability of a partner in a firm is ____________.

(a) Limited
(b) Unlimited
(c) Both (a) & (b)
(d) None of the above

(v) The liability on the instrument may be discharged.

(a) by cancellation
(b) by release
(c) by payment
(d) by any one of the above methods

(vi) Which one of the following is the subject matter of the contract
(a) Existing or future goods
(b) Goods perishing before making contract
(c) Goods perishing before sale but after agreement to sell

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(d) Any of the above

(vii) The main feature of e-contract is

(a) Cost and acceptability
(b) Purity and clarity
(c) Speed, accurate and reliable
(d) Perfection and attractive

(viii) Holder in due course means any person

(a) Drawing the instrument.
(b) Who for consideration become the possession of a promissory note.
(c) Named in the instrument to whom or to whom order the money is directed
to be paid.
(d) None of the above

(ix) If P makes an agreement with Q, an artist, to paint a portrait of P for Rs 2,000 and
Q use his own canvas & paint. Here it is
(a) Contract of Sale
(b) Contract of work and material.
(c) Sale on approval
(d) Hire Purchase agreement.

(x) The maximum amount of gratuity payable is _________.

[

(a) 10 lakhs
(b) 20 lakhs
(c) 15 lakhs
(d) 30 lakhs

(b) Match the following: [5×1=5]

Column ‘A’ Column ‘B’

1. Breach of duty A Moral judgement
2. Bill of exchange B Body corporate
3. ESI Corporation C MGT-12
4. Polling form D Cheque
5. Meta ethics E Misrepresentations

Answer: 1(b)

Column ‘A’ Column ‘B’

1. Breach of duty E Misrepresentations
2. Bill of exchange D Cheque
3. ESI Corporation B Body corporate
4. Polling form C MGT-12
5. Meta ethics A Moral judgement

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(c) Fill in the blanks: [5×1=5]

(i) Partners in profits only share in the profits of the firm but not ___________.
(ii) Every partner of LLP is the __________ of LLP.
(iii) The term ‘employer’ includes the ___________ deceased employer.
(iv) Register of __________ workers is to be maintained in a factor.
(v) ____________ ethics is the principles and standards that determine acceptable
conduct in business organizations.
Answer: 1(c)
(i) Losses;
(ii) Agent;
(iii) Legal representation;
(iv) Adult;
(v) Business.

(d) State whether the following statements are true or false: [5×1=5]

(i) In Bill of Exchange Statutory protection is not available.

(ii) Partnership is a separate legal entity.
(iii) Employees represent the station commission of ESI Corporation.
(iv) Foreign company conducts any business activity in India in same manner.
(v) A director may resign from his office by giving a notice in writing to the
company.

Answer: 1(d)
(i) True;
(ii) False;
(iii) True;
(iv) False;
(v) True.

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Answer to MTP_Intermediate_Syllabus 2016_june2020_Set2

Section - B

Answer any five from the following. Each question carries 15 marks (5×15=75)

2. (a) State the circumstances when an agent is personally liable for the contracts entered
into by him on behalf of the principal? [10]
(b) How the agency can be terminated? [5]
Answer: 2(a)
The general rule of the Indian Contracts Act, 1872 states that:
(i) Only the principal can enforce and can be held liable on a contract entered into by
an agent.
(ii) The agent is not personally liable on a contract entered into by him on behalf of the
principal.
The following are the exceptions to the above rule:
1. Foreign Principal: When agent acts for sale or purchase of goods for a principal
resident abroad i.e., foreign principal.
2. Personal liability by agreement: Where it is expressly provided in the contract that
the agent shall be personally liable.
3. Undisclosed principal: Where agent does not disclose the name/identity of the
principal.
4. Principal cannot be sued: Where the principal is disclosed but cannot be sued,
e.g., foreign sovereigns, ambassadors etc.
5. Non-existence of Principal: When the principal is not in existence at the time when
the act was done, i.e., the agent acted for a non-existent principal.
6. Agent’s liability: When the agent exceeds his authority or commits a breach of
warranty of authority.
7. Pretended Agent: When he acts as a pretended agent.
8. Mistake or Fraud: When he receives or pays money by mistake or fraud.
9. Agent sign an agreement without mentioning that he is an agent: Where an agent
signs a negotiable instrument without mentioning that he is signing as an agent.
10. Trade or customs: Where the usage of trade or custom makes an agent
personally liable.

Answer: 2(b)
Termination of Agency Section 201 provides for the termination of agency. An
agency is terminated by the principal-
• revoking his authority; or
• by the agent renouncing the business of the agency; or
• by the business of the agency being completed; or
• by either the principal or agent dying or becoming of unsound mind; or
• by the principal being adjudicated an insolvent under the provisions of any Act for
the time being in force for the relief of insolvent debtors.
Section 202 provides that where the agent has himself an interest in the property
which forms the subject matter of the agency, the agency cannot, in the absence of
an express contract, be terminated to the prejudice of such interest.

Section 208 provides as to the time at which the agent’s authority is terminated as to
agent and as to third persons. The termination of the authority of an agent does not,
so for as regards the agent, take effect before it becomes known to him, or, so far as
regards third persons, before it becomes known to them.

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3. (a) State the difference between a partnership and a company. [8]

(b) Who are the parties to the instruments? [7]

Answer: 3(a)

BASIS PARTNERSHIP COMPANY

Legal entity It is not a separate legal entity. A company is a separate legal
entity.
Number of Minimum required is two. Maximum Minimum number of members for
members number can be 100 subject to a private company is 2 and
some exceptions present Rules maximum 200. Minimum number
provide 50. of members for a public limited
company is 7 and there is no
limited for maximum.
Transfer of A partner cannot transfer his share Transfer of shares in a public
shares without the consent of other limited company is not a restricted
members one.

Management The firm can be run by all or any of The Board of Directors is having
the partners. responsibility to run the
management
Profit Profit is distributed according to No requirement of profit
distribution the agreement entered between distribution to members. It is at the
partners; if no agreement equal discretion of the management to
distribution. declare dividend that too only out
of profits.
Relationship The relationship with partners is of No such relationship in the
that of agency. company.
Remedy to The creditors of a firm can The creditors can proceed only
creditors proceed against the partners against the company and not
jointly and severally. against shareholders.
Liability The liability of the partners is The liability of the members of the
unlimited. company is limited.
Audit Audit is not compulsory for the Various types of audit are
partnership firm. compulsory for the company
Dissolution Firm can be dissolved on the eve A company can be dissolved only
of death of partner, retirement of by the winding up process as
partner etc., unless otherwise than ordered by the Court.
agreed to in the agreement.

Answer: 3(b)
PARTIES TO THE INSTRUMENTS
The transaction of the instrument requires at least two persons. One is the drawer and
other is the drawee. The drawer of the instrument is the person who makes a bill of
exchange or a cheque and the person thereby directed to pay is called the drawee.
In ‘Shivanth V. Bsihambar’- AIR 1935 Lah. 153 it was held that the definition of drawer
is not exhaustive; the maker of the promissory note can also be called a drawer.

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Drawer in case of need – When in the bill or in any endorsement thereof the name of
any person is given in addition to the drawee to be resorted to in case of need, such
a person is called a ‘drawee in case of need’.
Acceptor – After the drawee of a bill has signed his assent upon the bill, or, if there
are more parts thereof than one, upon one such parts, and delivered the same, or
given notice of such signing to the holder or to some person on his behalf, he is called
the acceptor.
Acceptor for honor- When a bill of exchange has been noted or protested for non
acceptance or for better security and any person accepts it supra protest for honor
of the drawer or any one of the endorsers, such person is called an ‘acceptor for
honor’.
Payee – The person named in the instrument, to whom or to whose order the money
is by the instrument directed to be paid, is called the ‘payee’.
Holder – Section 8 defines the term ‘holder’. The holder of a promissory note or a bill
of exchange or cheque is any person entitled in his own name to the possession
thereof and to receive or recover the amount due thereon from the parties thereto.
Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled
at the time of such loss or destruction.
Holder in due course – Section 9 defines the term ‘holder in due course. It means any
person who for consideration became the possessor of a promissory note, bill of
exchange or cheque if payable to bearer, or the payee or the endorsee thereof, if
payable to order, before the amount mentioned in it became payable, and without
having sufficient cause to believe that any defect existed in the title of the person
from whom he derived his title.

4. (a) Critically examine the duties of certified surgeon. [5]

(b) Discuss the matter provided for the pension scheme under the schedule. [10]

Answer: 4(a)
The duties of certified surgeons are as follows-
• the examination and certification of young persons;
• the examination of person engaged in factories in such dangerous occupations
or processes as may be prescribed;
• the exercising of such medical supervision as may be prescribed for any factory or
class or description of factories, where-
• cases of illness have occurred which it is reasonable to believe are due to the
nature of the manufacturing process carried on, or other conditions of work
prevailing, therein;
• by reason of any change in the manufacturing process carried on or in the
substances used therein or by reason of the adoption of any new manufacturing
process or of any new substance for use in a manufacturing process, there is a
likelihood of injury to the health of workers employed in that manufacturing
process;
• young persons are, or are about to be, employed in any work which is likely to
cause injury to their health.

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Answer: 4(b)
A pension fund has been created for the purpose of this scheme. The Pension Fund shall vest
in and administered by the Central Board. The pension scheme may provide for all or any of
the matters in Schedule II, as detailed below-
• The employees or class of employees to whom the Pension scheme shall apply;
• The portion of employers’ contribution to the Provident Fund which shall be entitled
to the Pension Fund and the manner in which it is credited;
• The minimum qualifying service for being eligible for pension and the manner in
which the employees may be granted the benefits of their past service;
• The regulation of the manner in which and the period of service, for which no
contribution is received;
• The manner in which the employees’ interest will be protected against default in
payment of contribution by the employer;
• The manner in which the accounts of the Pension fund shall be kept and
investment of moneys belonging to Pension Fund to be made subject to such pattern
of investment as may be determined by Central Government;
• The form in which an employee shall furnish particulars about himself and the
members of his family whenever required;
• The forms, registers and records to be maintained in respect of employees,
required for the administration of the Pension Scheme;
• The scale of pension and pensionary benefits and the conditions relating to the
grant of such benefits to the employees;
• The manner in which the exempted establishments have to pay contribution
towards the pension scheme and the submission of returns relating thereto;
• The mode of disbursement of pension and arrangements to be entered into with
such disbursing agencies as may be specified for the purpose;
• The manner in which the expenses for administering the Pension Scheme will be
met from the income of the Pension Fund;
• Any other matter which is to be provided for in the Pension Scheme or which may
be necessary for the purpose of implementation of the Pension Scheme.

5. (a) Explain transfer and transmission of shares. [5]

(b) Describe the procedure to be followed for the incorporations of a company. [10]

Answer: 5(a) Transfer and transmission of shares

Section 56 provides that a company may transfer the shares of a person to another
person, provided he applies for the same to the company in the prescribed form duly
stamped, dated and executed by or on behalf of the transferor and the transferee
specifying the name, address and occupation, if any, of the transferee has been
delivered to the company by the transferor or transferee within a period of 60 days
from the date of execution. The certificate relating to the securities is also to be sent
along with the application. If there is no such certificate, then the letter of allotment
of securities is to be attached.

Where the instrument of transfer has been lost or the instrument of transfer has not
been delivered within the prescribed time, the company may register the transfer on
such terms as to indemnity as the Board may think fit. This shall not prejudice the

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power of the company to register, on receipt of an intimation of transmission of any

right to securities by operation of law from any person to whom such right has been
transmitted.

Where an application is made by the transferor alone and relates to partly paid
shares, the transfer shall not be registered, unless the company gives notice of the
application to the transferee and the transferee gives no objection to the transfer,
within 2 weeks from the receipt of notice.

The transfer of any security or other interest of a deceased person in a company

made by his legal representative shall, even if the legal representative is not a holder
thereof, be valid as if he had been the holder at the time of the execution of the
instrument of transfer.

Answer: 5(b)

Section 7 of the Companies Act, 2013 provides for the procedure to be followed for
the incorporations of a company. The promotor of the company shall submit the
following documents to the Registrar of companies within whose jurisdiction the
registered office of the company is proposed to be situated for registration.

(a) Memorandum and articles of the company duly signed by all the subscribers to
the memorandum in such manner as may be prescribed;

(b) A declaration in the prescribed form by an Advocate, a Chartered Accountant,

Cost Accountant or Company Secretary in practice, who is engaged in the formation
of the company and by a person named in the articles as a director, manager or
secretary of the company, that all the requirements of the Act and rules made
thereunder in respect of registration;

(c) A declaration from each of the subscribers to the memorandum and from
persons named as the first directors, if any, in the articles stating that -(Form No. INC-9)

(1) he is not convicted of any offence in connection with the promotion, formation or
management of any company, or

(2) he has not been found guilty of any fraud or misfeasance or of any breach of
duty to any company under this Act or any previous company law during the last five
years and

(3) that all the documents filed with the Registrar for registration of the company
contain information that is correct and complete and true to the best of his
knowledge and belief;

(d) The address for correspondence till registered office is established;

(e) All particulars of every subscriber to the memorandum along with the proof of
identity;

(f) The particulars of the persons mentioned in the articles as the first directors of the
company;

(g) The consent to act as directors of company in such form as may be prescribed.

The memorandum of association and articles of association are the basic essential
documents of the company.

A new section (10A) has been introduced with the introduction of Companies
Amendment Ordinance. It provides that every company, incorporated after the

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notification of the ordinance, shall not commence business, unless the directors file a
declaration within 180 days of incorporation that every subscriber has paid for the
shares as agreed and the registered office has been verified by filing necessary
returns. Under 12A (new in section) the name of the company may be striked off if no
office is found on physical verification.

6. (a) Discuss the procedure for Rotation of Directors and re-appointment of directors. [8]
(b) What are the prohibitions and restrictions regarding political contributions? [7]

Answer: 6(a)

Rotation of directors
Unless the articles provide for the retirement of all directors at every annual general meeting,
not less than two thirds of the total number of directors of a public company shall-
• be persons whose period of office is liable to determination by retirement of directors by
rotation; and
• save as otherwise expressly provided in the Act, be appointed by the company in general
meeting.
At the first annual general meeting of a public company held next after the date of the
general meeting at which the first directors are appointed at every subsequent annual
general meeting, one third of such of the directors for the time being as are liable to retire by
rotation, or if their number is neither three nor a multiple of three, then, the number nearest to
one-third, shall retire from office.
The directors to retire by rotation at every annual general meeting shall be those who have
been longest in office since their last appointment, but as between persons who became
directors on the same day, those who are to retire shall, in default of and subject to any
agreement among themselves, be determined by lot. The company may fill up the vacancy
by appointing the retired director or some other person thereto.
Re-appointment of Director
A director liable to be retired may be re appointed in the general meeting. Section 164(2)
provides that no person who is or has been a director of a company which-
• has not filed financial statements or annual returns for any continuous period of 3 financial
years; or
• has failed to repay the deposits accepted by it or pay interest thereon or to redeem any
debentures on the due date or pay interest due thereon or pay any dividend declared and
such failure to pay or redeem continues for one year or more,
shall be eligible to be re-appointed as a director of that company or appointed in other
company for a period of 5 years from the date on which the said company fails to do so.

Answer: 6(b)

Section 182 : Prohibitions and Restrictions Regarding Political Contributions

According to Section 182 of the Act, a company, other than a Government company and
a company which has been in existence for less than three financial years, may contribute
any amount directly to any political party.

The contribution must be authorised by Board in its meeting by resolution and such resolution
shall be deemed to be the justification in law for such contribution.

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The donation may be directly or indirectly. If the contribution so made is likely to affect the
public support for a political party shall also be deemed to be the contribution for political
purpose. The expenditure incurred on advertisement in any publication souvenir, brochure,
tract, pamphlet or the like is also deemed as political contribution, if such publication is by or
on behalf of political party or if not, then for the advantage to such political party for a
political purpose.

Every company shall disclose in its profit and loss account the total amount contributed by it
under this section during the financial year to which the account relates. The contribution
under this section shall not be made except by an account payee cheque drawn on a bank
or an account payee bank draft or use of electronic clearing system through a bank
account.

7(a) State the needs for business ethics. [8]

(b) Explain the provisions relating to ‘nomination’. [7]

Answer: 7(a) Need for business ethics

The following points discuss the need and importance of business ethics-

• To stop business malpractice: Some unscrupulous businessmen do business malpractices

by indulging in unfair trade practices like black-marketing, artificial high pricing, adulteration,
cheating in weights and measures, selling of duplicate and harmful products, hoarding, false
claims of representations about their products etc., These business malpractices are harmful
to the consumers. Business ethics help to stop these business malpractices

• To improve customers’ confidence: Business ethics are needed to improve the customers’
confidence about the quality, quantity, price etc., of the products. The customs have more
trust and confidence in the businessmen who follow ethical rules. They feel that such
businessmen will not cheat them.

• For the survival of business: Business ethics are mandatory for the survival of business. The
businessmen who do not follow it will have short term success, but they will fail in the long run.
This is because they can cheat a consumer only once. After that, the consumer will not buy
goods from that businessman. He will also tell others not to buy from that businessman. So this
will defame his image and provoke a negative publicity. This will result in failure of the
business. Therefore, if the businessmen do not follow ethical rules, he will fail in the market. So,
it is always better to follow appropriate code of conduct to survive in the market.

• To safeguard consumers’ rights: Consumer sovereignty cannot be either ruled out or

denied. Business can survive so long it enjoys the patronage of consumer. The consumer has
many rights such as right to health and safety, right to be informed, right to choose, right to
be heard, right to redress, etc., But many businessmen do not respect and protect these
rights. Business ethics must safeguard these rights of the consumers.

• To protect employees and shareholders: Business ethics are required to protect the interest
of employees, shareholders, competitors, dealers, suppliers etc., It protects them from
exploitation through unfair trade practices.

• To develop good relations: Business ethics are important to develop good and friendly
relations between business and society. This will result in a regular supply of good quality
goods and services at low prices to the society. It will also result in profits for the businesses
thereby resulting in growth of economy.

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 For smooth functioning: If the business follows all the business ethics, then the employees,
shareholders, consumers, dealers and suppliers will all be happy. So they will give full
cooperation to the business. This will result in smooth functioning of the business. So, the
business will grow, expand and diversify easily and quickly. It will have more sales and
more profits.

 Consumer movement:Business ethics are gaining importance because of the growth of

the consumer movement. Gone are the days when the consumer can be taken for ride
by the unscrupulous business by their false propaganda and false claims, unfair trade
practices. Today, the consumers are aware of their rights and well informed as well as well
organized. Now they are more organized and hence cannot be cheated easily. They
take actions against those businessmen who indulge in bad business practices. They
boycott poor quality, harmful, high priced and counterfeit goods. Therefore, the only way
to survive in business is to be honest and fair. Consumer fora and consumer associations
are more active and vocal now.

 Consumer satisfaction: Today the consumer is the king of the market. Any business simply
cannot survive without the consumers. Therefore, the main aim or objective of business is
consumer satisfaction. If the consumer is not satisfied, then there will be no sales and thus
no profits too. Consumers will be satisfied only if the business follows all the business ethics
and hence are highly needed.

 Importance of labor:Labor, i.e., employees or workers play a very crucial role in the
success of a business. Therefore, business must use business ethics while dealing with the
employees. The business must give them proper wages and salaries and provide them
with better working conditions. There must be good relations between employer and
employees. The employees must also be given proper welfare facilities.

 Healthy competition:The business must use business ethics while dealing with the
competitors. They must have healthy competition with the competitors. Healthy
competition brings about efficiency, breaks complacency and leads to optical utilization
of scarce resources, hence is always welcome. They must not do cutthroat competition.
Similarly, they must give equal opportunities to small scale business. They must avoid
monopoly. This is because a monopoly is harmful to the consumers.

Answer: 7(b)

Nomination Section 6 provides for filing nomination for receiving the gratuity after the death
of the employee. The following are the points to be noted in respect of nomination-

• Each employee, who has completed one year of service, shall make nomination in Form –
F;

• He may distribute the amount of gratuity payable to him under this Act amongst more than
one nominee;

• If an employee has a family at the time of making a nomination, the nomination shall be
made in favor of one or more members of his family, and any nomination made by such
employee in favor of a person who is not a member of his family shall be void.;

• If at the time of making a nomination the employee has no family, the nomination may be
made in favor of any person or persons but if the employee subsequently acquires a family,
such nomination shall forthwith become invalid and the employee shall make, within such
time as may be prescribed, a fresh nomination in favor of one or more members of his family;

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• A nomination may, subject to above, be modified by an employee at any time, after

giving to his employer a written notice in such form and in such manner as may be
prescribed, of his intention to do so;

• If a nominee predeceases the employee, the interest of the nominee shall revert to the
employee who shall make a fresh nomination, in the prescribed form, in respect of such
interest;

• Every nomination, fresh nomination or alteration of nomination, as the case may be, shall
be sent by the employee to his employer, who shall keep the same in his safe custody.

8. Answer Any Three Question: [5×3]= 15

(a) Short Note on ‘Bailment’.

(b) write a note on ‘Letter of offer’.

(c) Note on ‘Consumer movement’.

(d) Describe the term ‘Scheduled employment’.

Answer:

8.(a) Bailment
Section 148 defines the term ‘bailment’ as the delivery of goods by one person to
another for some purpose, upon a contract that they shall, when the purpose is
accomplished, be returned or otherwise disposed of according to the directions of the
person delivering them. The bailment consists of-
• Bailor – the person delivering the goods is called the ‘bailor’; and
• Bailee – the person to whom the goods are delivered is called the ‘bailee’.
If a person, already in possession of the goods of other contracts to hold them as a
bailee, he thereby becomes the bailee and the owner becomes the bailor of such
goods, although they may not have been delivered by way of bailment.
The following are ingredients of the bailment-
• There must be a delivery of specific goods by one person to another;
• The delivery must be for some purpose;
• The delivery must be upon a contract that the goods shall, when the purpose is
accomplished, be returned or otherwise disposed of according to the directions of the
bailor.
Bailments may be classified into voluntary and involuntary. Voluntary bailments are the
outcome of an express contract between the parties. Instances of involuntary
bailments are found in cases of finders of good or of goods sent to a wrong place, or in
excess of the quantity ordered, or in cases where the bailee dies and the subject of
bailment comes into the hands of the bailee’s heirs.
Where there is no obligation to return the identical article, either in its original or in an
altered form, there is no contract of bailment.
8.(b) Letter of offer
Rule 17(2) provides that the company which has been authorized by a special
resolution shall, before the buyback of shares, file with the Registrar of Companies a
letter of offer in Form No. SH-8 along with the fee. Such letter of offer shall be dated
and signed on behalf of the Board of directors of the company by not less than two
directors, one of whom shall be the Managing Director, where there is one.

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The letter of offer shall be dispatched to the shareholders or security holders

immediately after filing the same with the Registrar of Companies but not later than 20
days from its filing with the Registrar of Companies. Rule 17(5) provides that the offer
for buy-back shall remain open for a period of not less than 15 days and not
exceeding 30 days from the date of dispatch of offer letter provided that where all
members of a company agree, the offer for buy-back may remain open for a period
less than 15 days.
Rule 17(6) provides that in case the number of shares or other specified securities
offered by the shareholders or security holders is more than the total number of shares
or securities to be bought back by the company, the acceptance per shareholder
shall be on proportionate basis out of the total shares offered for being bought back.

8. (c) Consumer movement

Business ethics are gaining importance because of the growth of the consumer
movement. Gone are the days when the consumer can be taken for ride by the
unscrupulous business by their false propaganda and false claims, unfair trade
practices. Today, the consumers are aware of their rights and well informed as well as
well organized. Now they are more organized and hence cannot be cheated easily.
They take actions against those businessmen who indulge in bad business practices.
They boycott poor quality, harmful, high priced and counterfeit goods. Therefore, the
only way to survive in business is to be honest and fair. Consumer forum and consumer
associations are more active and vocal now.

8.(d) Scheduled employment

Section 2(g) of the Act defines the terms ‘scheduled employment’ as an employment
specified in the Schedule, or any process or branch of working forming part of such
employment.
The Schedule is divided into two parts – Part I and Part II. Part I of the schedule has 18
entries. It was realized that it would be necessary to fix minimum wages in many more
employments to be identifiedin course of time. Accordingly, powers were given to
appropriate Government to add employments to the Schedule by following the
procedure laid down in Section 21 of the Act. As a result the State Government and
Central Government have made several additions to the Schedule and it differs from
State to State.
Part II relates to employment in agriculture. Employment in agriculture, that is to say, in
any form of farming, including the cultivation and tillage of the soil, dairy farming, the
production, cultivation, growing and harvesting of any agricultural or horticultural
commodity, the raising of live-stock, bees or poultry and any practice performed by a
farmer on a farm as incidental to or in conjunction with farm operations (including any
forestry or timbering operations and the preparation for market and delivery to
storage or to market or to carriage for transportation to market from produce).

DoS, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 14