REDEMPTION OF DEBENTURES

AS PER SEBI GUIDELINES AN AMOUNT EQUAL TO ___________ OF THE DEBENTURES ISSUE MUST BE TRANSFERRED TO DEBENTURE REDEMPTION RESERVE BEFORE REDEMPTION BEGINS.

• 50%
• 25%
• 80%
• 100%

X LTD WANTS TO REDEEM 5000, 5% DEBENTURES OF RS.100 EACH AT PREMIUM . HOW MUCH AMOUNT IT MUST TRANSFER TO DRR IF IT HAS ALREADY A BALANCE OF RS 1,00,000 IN DRR A/C?

• RS 4,00,000
• RS 25,000
• RS 2,00,000
• RS 2,50,000

WHERE IS DEBENTURE REDEMPTION RESERVE TRANSFERRED AFTER THE REDEMPTION OF ALL DEBENTURES

• CAPITAL RESERVE A/C
• GENERAL RESERVE A/C
• STATEMENT OF PROFIT AND LOSS
• SINKING FUND ACCOUNT

PROFIT ON REDEMPTION OF DEBENTURE IS TRANSFERRED TO WHICH ACCOUNT

• CAPITAL RESERVE ACCOUNT
• GENERAL RESERVE ACCOUNT
• SINKING FUND ACCOUNT
• STATEMENT OF P&L ACCOUNT

DEBENTURES CAN BE REDEEMED....

• BY ISSUE OF NEW SHARES
• BY EXISTING RESOURCES
• BY ACCUMULATED PROFITS
• BY ALL THE ABOVE

DEBENTURES CAN BE REDEEMED....

• BY ANNUAL DRAWINGS
• BY PURCHASE IN THE OPEN MARKET
• BY CONVERSION
• BY ALL THE ABOVE

PROFIT ON CANCELLATION OF OWN DEBENTURES IS

• REVENUE PROFIT
• CAPITAL PROFIT
• OPERATING PROFIT
• TRADING PROFIT

WHICH OUT OF THE FOLLOWING IS NOT A METHOD OF REDEMPTION OF DEBENTURE

• BY DRAW OF LOTS
• BY PURCHASE IN THE OPEN MARKET
• BY REVALUATION METHOD
• BY CONVERSION 

WHICH COMPANIES ARE EXEMPTED FROM CREATING DEBENTURE REDEMPTION RESERVE  BY SEBI ?

• INFRASTRUCTURE COMPANIES 
• FINANCIAL INSTITUTION AND BANKING COMPANIES
• PRIVATE COMPANY
• MULTINATIONAL COMPANY

HOW MUCH AMOUNT OF DEBENTURE REDEMPTION RESERVE WILL BE CREATED IN CASE OF REDEMPTION OF DEBENTURE BY CONVERSION

• 25% 
• 50%
• NIL AMOUNT
• 100%