Samsung Ltd., which is an unlisted company and not a NBFC or HFC, had issued following debentures
Samsung Ltd., which is an unlisted company and not a NBFC or HFC, had issued following debentures:
(a) 1,00,000, 10% fully convertible debentures of ₹ 100 each on 1st April, 2018 redeemable by conversion into shares after 5 years.
(b) 20,000, 10% Debentures of ₹ 100 each redeemable after 4 years, 25% of the debentures are to be redeemed by payment and balance by conversion into new debentures.
How much amount it shall transfer to DRR as per the Companies Act, 2013?
Anurag Pathak Changed status to publish November 1, 2023
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.
Anurag Pathak Changed status to publish November 1, 2023
