The correct answer is Option (2) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II).
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List-I
(Type of Debenture)
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List-II
(Explanation)
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(A) Secured Debentures
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(III) It refers to those debentures where a charge is created on the
assets of the company for the purpose of payment in case of default.
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(B) Irredeemable Debentures
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(IV) These debentures are repayable on the winding-up of a
company or on the expiry of a long period.
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(C) Unsecured Debentures
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(I) These debentures do not have a specific charge
on the assets of the company.
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(D) Redeemable Debentures
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(II) These debentures are those which are payable on the expiry of
the specific period either in lump sum or in installments during the lifetime of the company.
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(A) Secured Debentures- (III) It refers to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.
Secured debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default. The charge may be fixed or floating. A fixed charge is created on a specific asset whereas a floating charge is on the general assets of the company. The fixed charge is created against those assets which are held by a company for use in operations not meant for sale whereas floating charge involves all assets excluding those assigned to the secured creditors.
(B) Irredeemable Debentures- (IV) These debentures are repayable on the winding-up of a company or on the expiry of a long period.
Irredeemable debentures are also known as Perpetual Debentures because the company does not give any undertaking for the repayment of money borrowed by issuing such debentures. These debentures are repayable on the winding-up of a company or on the expiry of a long period.
(C) Unsecured Debentures- (I) These debentures do not have a specific charge on the assets of the company.
Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default. Normally, these kinds of debentures are not issued. Unsecured debentures are also known as naked debentures.
(D) Redeemable Debentures- (II) These debentures are those which are payable on the expiry of the specific period either in lump sum or in installments during the lifetime of the company.
Redeemable debentures are those which are payable on the expiry of the specific period either in lump sum or in instalments during the life time of the company. Debentures can be redeemed either at par or at premium. | 
