Question

Assertion (A): All listed as well as unlisted companies are required to invest atleast 15% of the nominal value of debentures maturing during the year.

Reason (R): Profit on sale of debenture redemption investment during the same year is a capital profit.

In the context of the above two statements, which of the following is correct?

विकल्प

• Both (A) and (R) are correct and (R) is the correct reason of (A).

• Both (A) and (R) are correct but (R) is not the correct reason of (A).

• Only (A) is correct.

• Both (A) and (R) are wrong.

Answer 1

Only (A) is correct.

Explanation:

Assertion (A) is correct as companies (except NBFCs and HFCs) must invest at least 15% of debentures maturing during the year. Reason (R) is incorrect because profit on sale of debenture redemption investment is treated as a revenue profit, not capital profit.