Question : Right Retail Ltd., an unlisted (Non-NBFC/HFC) company, had 10,000, 12% Debentures of Rs. 100
each outstanding for redemption as follows:
On 31st March 2019 2,000 Debentures,
On 31st March 2020 3,000 Debentures,
On 31st March, 2021 Balance Debentures.
Before the company redeems 2,000 debentures on 31st March 2019, how much is the amount Transferred to DRR is -------
Option 1: Rs 10,00,000
Option 2: Rs 2,00,000
Option 3: Rs 1,00,000
Option 4: None of the above
Correct Answer: Rs 1,00,000
Solution : Answer = Rs 1,00,000
Before the company redeems 2,000 debentures on 31st March 2019, it should have a balance in DRR of Rs 1,00,000, i.e., 10 per cent of Rs 10,00,000, being the nominal (face) value of debentures outstanding for redemption.
Hence, the correct option is 3.
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