Global Bank Ltd. has outstanding 50,000, 8% Debentures of ₹ 100 each which are due for redemption on 31st March, 2023
Solution:- Note:- It being a banking company, is not required to create DRR or make investment in specified securities.
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Barua Ltd. (a listed NBFC) redeems its 9,000, 10% Debentures of ₹ 100 each in instalments as follows:
Solution:- Hint:- (i) DRI = 15% of ₹ 3,00,000 = ₹ 45,000 (2) DRI = 15% of ₹ 5,00,000 = ₹ 75,000. As 45,000 is already invested, rest ₹ 30,000 is further invested to make it equal to 15% of…
Health Foods Ltd. had 10,000, 9% Debentures of ₹ 100 each due for redemption at a premium of ₹ 10 each as follows:
Solution:- Working Notes: (i) DRI = 15% of ₹ 3,00,000. (ii) After realisation of securities, balance investment in Specified Securities is ₹ 30,000, i.e., 15% of ₹ 2,00,000, i.e., debentures to be redeemed on 30th Septemeber, 2021) (iii) After this…
Uniworld Ltd. had 10,000, 8% Debentures of ₹ 100 each due for redemption at a premium of ₹ 10 each as follows:
Solution:- Hint:- Investments are realised to the extent that balance in Debentures Redemption Investment is equal to 15% of the debentures to redeemed in the next year. Debentures Redemption Investment is made of amount equal to 15% of the nominal…
Ramada Ltd. had outstanding 10,000, 8% Debentures of ₹ 100 each due for redemption as follows:
Solution:- It will invest ₹ 30,000 (i.e., 15% of ₹ 2,00,000) in specified securities on or before 30th April, 2021. If will further invest ₹ 15,000 in specified securities on or beofre 30th April, 2022 to make totl investment equal…
Amera Ltd. had outstanding 6,000, 7% Debentures of ₹ 100 each due for redemption in three equal annual instalments beginning 30th June, 2022
Solution:- Investment in DRI = 6,00,000/3 = ₹ 2,00,000 ✕ 15% = ₹ 30,000 Time of Investment = on or before 30th April, 2022. The invested amount shall be realised at the time of last redemption, i.e., 30th June, 2024.
On 1st April, 2021 Moon Ltd., a listed company, issued 10,000, 10% Debentures of ₹ 100 each at par redeemable at 5% premium in four equal annual instalments beginning 30th June,2022
Solution:- Amount of DRI before redemption of 1st installment 10,00,000/4 = 2,50,000 ✕ 15% = ₹ 37,500 Time of Investment = on or before 30th April, 2022. It shall be realised at the time of last redemption, i.e., on 30th…
Galaxy Finance Ltd., a listed NBFC, had issued on 1st April, 2018, 20,000, 12% Debentures of ₹ 100 each redeemable by draw of lots as under:
Solution:-
Sherry Ltd. (a listed NBFC) has 50,000, 6% Debentures of ₹ 100 each due for redemption on 31st March, 2022
Solution:- Debentures Redemption Investment = 50,00,000 ✕ 15% = ₹ 7,50,000 Debenture Redemption Investment Realised = 7,50,000 ✕ 105% = ₹ 7,87,500
Export-Import Bank of India (EXIM Bank) issued 20,000, 10% Debentures of ₹ 100 each through public issue and 10,000
Solution:- DRR – NIL DRI – NIL Banking companies (for both Public issue and Private Placement of Debentures) are exempted from creating DRR and DRI for the purpose of Redemption of Debentures.