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 : 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 : 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: If a company sets aside profit to Debentures Redemption Reserve, it means redemption is not out of capital alone.

Option 2: If a company sets aside profit equivalent to nominal (face) value of outstanding debentures to Debentures Redemption Reserve, it means redemption is out of profits.

Option 3: Both 1 and 2

Option 4: None of the above