Case Study SP XII Test 2

The Balance-sheet of a TISCO Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.

What type of source retained earning is ?

Violet Ltd. company plans to raise ` 10 crores by issuing debentures. The Board of Directors has some queries. Please advise them on the following :

b. Can they issue irredeemable Debentures

• Yes

• No

Diakini limited company proposes to issue debenture to the public to raise funds. After discussions, the Board of directors have decided to issue secured, Redeemable non-convertible debentures with a tenure of Ten years. Please advise the board on following

matters

Should the company appoint Deposit trustee ?

• Yes

• No

• company's personal choice

• need to ask registrar of companies

The Balance-sheet of a TISCO Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.

c) What type of source retained earning is ?

• Borrowed Capital source

• Share Capital source

• Internal financing

Escorts Motor Ltd. Company’s capital structure is made up of 1,00,000 Equity shares having face value of ` 10 each. The company has offered to the public 40,000 Equity shares and out of this, the public has subscribed for 30,000 Equity shares. State the following in

a) Authorised capital

Escorts Motor Ltd. Company’s capital structure is made up of 1,00,000 Equity shares having face value of ` 10 each. The company has offered to the public 40,000 Equity shares and out of this, the public has subscribed for 30,000 Equity shares. State the following in

c. Issued Capital

Escorts Motor Ltd. Company’s capital structure is made up of 1,00,000 Equity shares having face value of ` 10 each. The company has offered to the public 40,000 Equity shares and out of this, the public has subscribed for 30,000 Equity shares. State the following in

b. Subscribed capital

Violet Ltd. company plans to raise ` 10 crores by issuing debentures. The Board of Directors has some queries. Please advise them on the following :

c. As the company is offering debentures to its members, can such debentures have normal voting rights ?

• Yes

• No

The Balance-sheet of a Tisco Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.

Can the retained earnings be converted into capital ?

• Yes

• No

Mr. Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and does not want to take any risk. He is interested in definite rate of income and safety of principal.

a) Name the type of security that Mr. Rohit will opt for ?