On 31st March, 2022, Geekay Ltd., an unlisted (Non-NBFC or HFC) company, had outstanding ₹ 8,00,000; 9% Debentures due for redemption
Solution:-
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IFCI Ltd. (an other Financial Institution as per Section 2(72) of the Companies Act, 2013) issued 10,00,000; 9% Debentures of ₹ 50 each on 1st April, 2017 redeemable on 1st April, 2023
Solution:- NIL Debentures Redemption Reserve is not to be created, it being an other Financial Institution as per Section 2 (72) of the Companies Act, 2013.
Sun Chemicals Ltd. a listed public Limited Company is a manufacturer of chemical fertilisers having turnover of ₹ 50 crore
Solution:- NIL Listed company are exempted to create DRR for the purpose of Redemption of Debenture.
Vishwas Ltd., an unlisted (Non-NBFC or HFC) company, has ₹ 20,00,000, 9% Debentures of ₹ 100 each of which half the amount is due for redemption at a premium of 10%
Solution:- Amount of Profit to be transferred to DRR = ₹ 1,50,000 [i.e., (₹ 20,000 ✕ 10/100) – ₹ 50,000].
Mansi Ltd, an unlisted (Non-NBFC/HFC) company, had 6,000; 10% Debentures of ₹ 100 each due for redemption on 31st March, 2022
Solution:-
Pass necessary Journal entries in the books of Kotak Finance Ltd., a listed NBFC, for issue and redemption of Debentures in the following cases:
Solution:- Case – I Case – II
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.
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…