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:-
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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.
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:-
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.