ICAI SPOM Case Scenarios for CA Final
Self-Paced Online Modules (SPOM) are official ICAI case scenario booklets designed to bridge the gap between theoretical knowledge and practical application. Each scenario presents a real-world business situation followed by MCQs with detailed reasoning.
Relevant for May 2026 examination and onwards. Published by ICAI Board of Studies (Academic), Revised Edition February 2026.
Corporate and Economic Laws
Set A - 65 Case Scenarios
Strategic Cost & Performance Management
Set B - 102 Case Scenarios
Why Practice SPOM Case Scenarios?
Sample: Case Scenario 1 (Corporate Law)
From Set A — Corporate and Economic Laws. Try answering before revealing the explanations.
The Scenario
Alfa Numerio Limited is a Public Listed Company listed on National Stock Exchange. The Board of Directors consists of 6 Directors, out of which Mr. Ramesh Khanna is a Promoter Director and currently designated as Chairman & Managing Director. Mrs. Rashmi Khanna, wife of Mr. Ramesh Khanna, is also one of the Promoter Directors and One Mr. Dinesh Negi is a Nominee Director appointed by IKCI Bank, which has provided Banking facilities to Alfa Numerio for ₹ 250.00 Crore. Rest 3 Directors are professional Directors.
Mr. Rohan Khanna, son of Mr. Ramesh Khanna & Mrs. Rashmi Khanna has just completed his MBA from a premier college in London and returned to India for joining his family business. When Mr. Rohan Khanna was pursuing his MBA, he was caught by Police Authorities of UK in a rave party and was convicted of using drugs and sentenced for simple imprisonment of 9 months. However an appeal is lying pending for conviction before High Court of London and the conviction was stayed pending conclusion of appeal.
Mr. Ramesh Khanna proposed his appointment as an Additional Director in the upcoming Board Meeting and directed the Company Secretary to include the same as one of the agenda item in the Notice of Board Meeting.
In the same Board Meeting, the Quarterly Results of the Alfa Numerio Limited is also to be approved. The notice of the Board Meeting is sent to all the Directors 3 days in advance of the Board Meeting. Total 4 Directors attend the Board Meeting including Mr. Ramesh Khanna, Mrs. Rashmi Khanna, Mr. Dinesh Negi and one Professional Director. The following item inter-alia was discussed and resolved:
- Appointment of Mr. Rohan Khanna as Additional Director
- Approval of Unaudited Quarterly Results of the Quarter
- A Long Term Product Purchase Agreement with a Partnership Firm where Mrs. Rashmi is one of the Partners holding profit sharing ratio of 51%
The Directors present in the meeting also unanimously approved the short notice of the Board Meeting. Subsequent to approval of the Unaudited Quarterly Results, the same are forwarded to the Auditors of the Company for its Limited Review Report.
It was also brought into the notice that during the discussion of agenda item pertaining to Long Term Product Purchase Agreement, Mr. Ramesh Khanna stepped down from the chairmanship of the Board Meeting and Mr. Dinesh Negi took over the Chairmanship of the Board Meeting.
The Company later on also emailed the Quarterly results to the stock exchange immediately upon conclusion of Board Meeting.
Q1. Considering the appointment of Mr. Rohan Khanna as an Additional Director, which statement holds truth?
Show Reasoning
Answer: (c)
Section 164(1)(d) & (e) of the Companies Act, 2013 disqualifies a person from directorship if:
(d) he has been convicted by a court of any offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence;
Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be appointed as a director in any company.
Q2. Considering the shorter notice of Board Meeting, which statement holds truth?
Show Reasoning
Answer: (b)
Section 173(3) of the Companies Act, 2013: A meeting of the Board shall be called by giving not less than seven days' notice in writing to every director.
Provided that a meeting of the Board may be called at shorter notice to transact urgent business subject to the condition that at least one independent director, if any, shall be present at the meeting.
Provided further that in case of absence of independent directors from such a meeting of the Board, decisions taken at such a meeting shall be circulated to all the directors and shall be final only on ratification thereof by at least one independent director, if any.
Q3. Considering the Related Party Long Term Purchase Agreement, which statement holds truth?
Show Reasoning
Answer: (c)
Section 188 governs related party transactions (RPTs), like a purchase agreement with a promoter director's 51%-controlled partnership firm (deemed related under Section 2(76)). Prior board approval is mandatory via disinterested quorum under Section 174 — interested directors recuse, do not count for quorum/vote, and cannot participate in discussions.
Approval in a board meeting where interested parties did not participate ensures disinterested quorum, validating the agreement (arm's length pricing is separate under Rule 15).
Q4. Regarding the approval of the quarterly results of the Company, which statement holds truth?
Show Reasoning
Answer: (c)
As per Section 173(3) of the Companies Act, 2013, a meeting of the Board shall be called by giving not less than seven days' notice. However, a meeting may be called at shorter notice to transact urgent business subject to the condition that at least one independent director shall be present.
Since the short notice was approved by all directors present (including independent directors), the quarterly results approved in this meeting are valid.
This is 1 of 65 case scenarios in Set A. Download the full PDF for all scenarios with detailed reasoning.
Topics Covered
Set A: Corporate and Economic Laws
Set B: Strategic Cost & Performance Management
Practice with CA Final Papers
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