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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


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

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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