Question : Amit Ltd., an unlisted (Non-NBFC or HFC) company, is to redeem 5,000; 9% Debentures of Rs.100 each on 31st December, 2020. The company should invest in specified securities on or before __________.
Option 1: 30th April, 2020
Option 2: 30th April, 2019
Option 3: 31st December, 2019
Option 4: 31st December, 2020
Correct Answer: 30th April, 2020
Solution : Answer = 30th April, 2020
The company should invest in specified securities on or before 30th April 2020. The company should invest in specified securities on or before 30th April 2020 to redeem the debentures on 31st December 2020. Investing in specified securities ensures that the company has sufficient funds available for the redemption of the debentures on the specified date.
Hence, the correct option is 1.