Question

Utsav Ltd. (an unlisted company) decided to redeem its 4,000, 9% Debentures of ₹ 100 each which were issued at a discount of 8%, and were redeemable at a premium of 10%. The amount transferred to Debenture Redemption Reserve will be ______.

Options

• ₹ 40,800

• ₹ 44,000

• ₹ 1,00,000

• ₹ 40,000

Answer 1

Utsav Ltd. (an unlisted company) decided to redeem its 4,000, 9% Debentures of ₹100 each which were issued at a discount of 8%, and were redeemable at a premium of 10%. The amount transferred to Debenture Redemption Reserve will be ₹ 40,000.

Explanation:

Face Value of Debentures = 4,000 × ₹ 100 = ₹ 4,00,000

DRR Rate for an Unlisted Company (as per present SEBI Rules/Rule 18(7) of Companies (Share Capital & Debentures) Rules, 2014, amended from 16‑Aug‑2019) = 10%

DRR Amount Required = 10% of ₹ 4,00,000 = ₹ 40,000