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Question
Premier Ltd. issued 2,000, 9% Debentures of ₹ 100 each at par, redeemable after five years at a premium of 10%. The minimum amount invested in Debenture Redemption Investments will be ______.
Options
₹ 30,000
₹ 33,000
₹ 50,000
₹ 2,00,000
MCQ
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Solution
Premier Ltd. issued 2,000, 9% Debentures of ₹100 each at par, redeemable after five years at a premium of 10%. The minimum amount invested in Debenture Redemption Investments will be ₹ 30,000.
Explanation:
As per the Companies (Share Capital and Debentures) Rules, a company must invest at least 15% of the amount of debentures maturing during the year in Debenture Redemption Investments (DRI) before 30th April of the year of redemption.
Face Value of Debentures = 2,000 × ₹ 100 = ₹ 2,00,000
15% of ₹ 2,00,000 = ₹ 30,000
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