Practicing Success
Debenture Redemption Reserve is not to be set aside in which of the following cases? |
Debentures are not convertible Debentures are fully convertible Debentures are partially convertible None of the above |
Debentures are fully convertible |
It may be noted that no Debenture Redemption Reserve is required in case of convertible debentures because no funds are required for redemption. In case of partly convertible debentures, Debenture Redemption Reserve shall be created in respect of non-convertible portion of debenture issue. |