[ISC] Q 2 Redemption of Debenture TS Grewal (2024-25)

Solution of question number 2 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)

An unlisted public limited company is a manufacturer of chemical fetiliers having Revenue from Operations of ₹ 50 crore. The company had issued 5,000, 12% Debenture of ₹ 500 each at par. Determine the amount of Debentures Redemption Reserve which it should set asie, i.e., transfer to meet the requirements of law.

Solution:-

DRR = 10% of ₹ 25,00,000

DRR = ₹ 2,50,000

Explanation:-

Unlisted Companies other than NBFC and HFC are required to created DRR equal to 10% of the value of the outstanding Debentures.