Question

Karma Ltd., an unlisted manufacturing company, had 30,000, 9% Debentures of ₹ 100 each due for redemption on 31st March, 2025.

Calculate the amount to be invested in the Debenture Redemption Investment Account for the redemption of Debentures, as per the provisions of the Companies’ Act, 2013.

Answer 1

Total Nominal Value = 30,000 × 100

= 30,00,000

According to the Companies Act 2013, the investment (DRI) must be at least 15% of the nominal value of the debentures being redeemed.

`15/100 xx 30,00,000`

= 4,50,000