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Question : Right Retail Ltd., an unlisted (Non-NBFC/HFC) company, had 10,000, 12% Debentures of Rs. 100
each outstanding for redemption as follows:
On 31st March 2019 2,000 Debentures,
On 31st March 2020 3,000 Debentures,
On 31st March, 2021 Balance Debentures.

Before the company redeems 5,000 debentures on 31st March 2021, how much of the amount transferred  to DRR is

Option 1: Rs 50,000

Option 2: Rs 80,000

Option 3: Rs 1,00,000

Option 4: None of the above


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs 50,000


Solution : Answer = Rs 50,000

Before the company redeems 5,000 debentures on 31st March 2021, it should have a balance in DRR of not less than Rs. 50,000, i.e., 10 per cent of Rs. 5,00,000 being the nominal (face) value of Outstanding debentures ( Rs. 8,00,000 - Rs. 3,00,000).
Hence, the correct option is 1.

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