Nirbhai Chemicals Ltd, a listed company, issued ₹ 10,00,000; 6% Debentures of ₹ 50 each at a premium of 8% on 30th June, 2022 redeemable on 30th June, 2023
Solution:-
Commerce School
Student Community
Archives Answers
Answer
Paritosh Ltd. (an unlisted manufacturing company) had following balances as on 1st April, 2021:
Solution:-
On 1st July, 2018. Astrex Ltd. (an unlisted construction company) issued 1,000, 8% Debentures of ₹ 100 each, to be redeemed at a premium of 6% on 31st December, 2020
Solution:- Just for sake of more information:-
Star Finance Ltd., an unlisted NBFC issued 2,00,000; 8% Debentures of ₹ 10 each at a premium of 8% on 30th June, 2017 redeemable on 31st March, 2021
Solution:- NIL Unlisted Non-Banking Finance Companies are exempted to create DRR for the purpose of Redemption of Debentures.
State Bank of India has 6,000, 7% Debentures of ₹ 1,000 each outstanding for redemption
Solution:- NIL Banking companies (both public issue and private placement of debentures) are not required to create DRR for the purpose of Redemption of Debentures.
Prakash Housing Finance Ltd., a listed HFC has outstanding 5,000, 9% Debentures of ₹ 1,000 each redeemable at par on 31st January, 2022
Solution:- NIL Housing Finance Corporation (listed or unlisted) are not required to create DRR for the purpose of Redemption of Debenture.
Care Products Ltd., a listed company, has outstanding 2,000, 8% Debentures of ₹ 1,000 each redeemable at a premium of 10% on 31st December 2023
Solution:- Nil Listed company are not required to create DRR for the purpose of redemption of debenture.
Dow Housing Finance Ltd. issued ₹ 2,00,000; 8% Debentures of ₹ 10 each at a premium of 8% on 30th June, 2020 redeemable on 31st March, 2023
Solution:- Nil Explanation:- Housing Finance Corporation (listed and unlisted) are exempted from creating DRR for the purpose of Redemption of Debentures
Samsung Ltd., which is an unlisted company and not a NBFC or HFC, had issued following debentures
Solution:- (a) DRR is not required in the redemption of convertible debentures. (b) DRR = 10% of (20,00,000 * 25%) DRR = ₹ 50,000 DRR is to be created for the non-convertible part of the debentures outstanding.
An unlisted public limited company is a manufacturer of chemical fetiliers having Revenue from Operations of ₹ 50 crore
Solution:- Solution:- DRR = 10% of ₹ 25,00,000 DRR = ₹ 2,50,000 Explanation:- Unlisted Companies other than NBFC and HFC are required to create DRR equal to 10% of the value of the outstanding Debentures.