Which of the following statement is NOT correct?

All of the above

The correct answer is option 4- All of the above.

"Issue price and redemption value of debentures cannot differ." - THIS IS INCORRECT. The issue price and redemption value of debentures are usually the same, meaning that investors receive the principal amount they invested when the debentures mature. However, in some cases, companies may issue debentures with a discount or premium, and redeem them at premium or par, which can result in a difference between the issue price and redemption value.

"A debenture is a form of short-term borrowing by the companies." - THIS IS INCORRECT. Debentures are typically a form of long-term borrowing by companies. They are debt instruments with fixed maturity dates, often ranging from a few years to several decades.

"Debenture interest is an appropriation of profit." - THIS IS INCORRECT. The interest paid on debentures represents an expense for the company, and it is deducted from the company's profits before calculating the net profit available to shareholders. In this sense, debenture interest is a charge against profit for the purpose of servicing the debt. It will be paid irrespective of profit or loss of the company.