Solution:- Note:- Amount proportionate to 50% Debentures redeemed transferred. Alternatively, DRR may be transferred to General Reserve when all the debentures have been redeemed.

Anurag Pathak
November 2, 2023

On 31st March, 2022, Geekay Ltd., an unlisted (Non-NBFC or HFC) company, had outstanding ₹ 8,00,000; 9% Debentures due for redemption

Solution:-

Anurag Pathak
November 2, 2023

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.

Anurag Pathak
November 2, 2023

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.

Anurag Pathak
November 2, 2023

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].

Anurag Pathak
November 2, 2023