Which of the following are the correct statements regarding debentures/debentures interest?

(A) The payment of interest on debentures is a charge on the profits of the company.
(B) Redeemable debentures are those debentures which are payable on the expiry of the specific period.
(C) Debentures cannot be converted into shares.
(D) Perpetual debentures are also known as irredeemable debentures.

Choose the correct answer from the options given below:

(A), (B) and (D) only

The correct answer is Option (2) → (A), (B) and (D) only

Debentures cannot be converted into shares. Incorrect — some debentures are convertible debentures, which can be converted into shares of the company.

A) The payment of interest on debentures is a charge on the profits of the company. Correct — interest on debentures is a fixed liability and must be paid whether the company makes profit or not.

(B) Redeemable debentures are those debentures which are payable on the expiry of the specific period. Correct — redeemable debentures have a fixed maturity date for repayment.

(D) Perpetual debentures are also known as irredeemable debentures. Correct — perpetual/irredeemable debentures have no fixed redemption date.