Question : Choose which of the following statements is true.

Option 1: Debentures Redemption Reserve is set aside by all the companies except All India Financial Institutions regulated by RBI and Banking Companies.

Option 2: Amount is set aside to Debentures Redemption Reserve by Unlisted Companies which are not Non-Banking Finance Companies (NBFCs) or Housing Finance Companies (HFCs).

Option 3: Amount is set aside to Debentures Redemption Reserve by all Unlisted Companies.

Option 4: Debentures Redemption Investment is made by the companies required to set aside amount to Debentures Redemption Reserve.

Question : Which of the following statements is correct in respect of,amount is not set aside to DRR?

Option 1: On the fully convertible Debentures;

Option 2: On convertible part of Partly Convertible Debentures.

Option 3: By the companies that are exempted from transferring amount to DRR.

Option 4: All of the above

Question : Choose which of the following statements is true?

Option 1: Debentures Redemption Reserve is set aside by a company out of amount available for payment of dividend.

Option 2: General Reserve can be transferred to Debentures Redemption Reserve.

Option 3: Both 1 and 2

Option 4: None of the Above 

Question : Choose which of the following statements is true?

Option 1: Surplus, i.e., Balance in Statement of Profit and Loss cannot be transferred to Debentures Redemption Reserve.

Option 2: At least 10% of the redeemable value of debentures should be set aside to Debentures Redemption Reserve before the redemption of debentures.

Option 3: Debentures can be redeemed out of capital except by Unlisted companies that are not NBFCs or HFCs.

Option 4: Unlisted NBFCs and HFCs cannot redeem debentures out of capital alone because they haveto transfer amount to Debentures Redemption Reserve.

Question : Choose which of the following statements is not correct.

Option 1: Debentures Redemption Investment is made by all companies redeeming the debentures.

Option 2: All India Financial Institutions (AIFIs), Banking Companies and Other Financial Institutions are not required to set aside amount to Debentures Redemption Reserve.

Option 3: Unlisted NBFCs and HFCs are not required to invest 15% of Outstanding Debentures in Specified Securities.

Option 4: Debentures Redemption Reserve can be used only for redemption of debentures.