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
Correct Answer: All of the above
Solution : Answer = All of the above
Redemption of Debentures out of Capital means that the company redeems debentures without transferring any amount to DRR out of the profits available for payment of dividends.
The amount is not set aside for DRR
(i) By the companies that are exempted from transferring amount to DRR
(ii) on the fully convertible Debentures; and
(iii) on convertible part of Partly Convertible Debentures.
Thus, in the above cases, redemption of debentures out of capital is possible by all types of Companies except Unlisted companies, other than NBFCs and HFCs.
Hence, the correct option is 4.
Question : Which of the following statements is correct?
Question : Choose which of the following statements is true.
Question : Choose which of the following statements is not correct.
Question : Debentures are redeemed without setting aside an amount to Debentures Redemption Reserve (DRR). It is called redemption ________.
Question : When Debentures are redeemed setting aside amount equivalent to nominal (face) value of outstanding debentures to Debentures Redemption Reserve (DRR). It is known as redemption -------
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