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Question
Answer in one sentence:
When should a company appoint a credit rating agency?
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Solution
A company should appoint a credit rating agency at the time of Public Issue or Rights Issue.
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RELATED QUESTIONS
A company cannot issue ______ with voting rights.
Select the correct answer from the option given below and rewrite the statement:
The details of allotment of Debentures must be entered in ___________.
Write a word or a term or a phrase which can substitute the following statement.
Period within which debenture certificate must be issued by a company.
Write a word or a term or a phrase which can substitute the following statement.
Authority which has power to issue debentures.
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Debentures holders are paid interest.
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Correct the underlined word and rewrite the following sentence:
Return on investment on debenture is dividend.
Arrange in proper order.
a. Obtain Credit Rating.
b. Entry in register of debenture
c. Receive application with money
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Study the following case/situation and express your opinion.
DDS financial plans to raise 10 crores by issuing secured non-convertible debentures. However, as per the Articles of Association, the board of directors have authority only to raise up to 5 crores. They are also considering whether to go for private placement or make public offer. Please advise them on the following:
Is the proposed issue within the borrowing powers of the board?
Study the following case/situation and express your opinion.
| Violet Ltd. company plans to raise 10 crores by issuing debentures. The Board of Directors has some queries. Please advise them on the following: |
- Can the company issue unsecured debentures?
- Can they issue irredeemable debentures?
- As the company is offering debentures to its members, can such debentures have normal voting rights?
