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
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. How much Investment should be made by the company as per the provisions of Companies Act, 2013 before redemption of debentures?
Also state when should it be made and when realised.
Anurag Pathak Changed status to publish November 2, 2023
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 June, 2025.
Anurag Pathak Changed status to publish November 2, 2023
