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प्रश्न
Answer the question.
Explain any five types of debentures through which a company can collect borrowed capital from the public.
उत्तर
Five types of debentures are:
(i) Mortgage and Unsecured Debentures: Mortgage debentures are those debentures which are secured by either a fixed charge or a floating charge on the assets of the company. In case, the company makes a default in payment, the debenture holders can recover their dues from the mortgaged property. Whereas unsecured debentures are those debentures that are not secured by a charge.
(ii) Redeemable and Irredeemable Debentures: Redeemable debentures are repayable on a predetermined date or at any time prior to their maturity at the option of the company. Irredeemable debentures are those debentures that are not repayable during the lifetime of the company and hence will be repaid only when the company is wound up.
(iii) Bearer Debentures: Bearer debentures can be transferred by mere delivery as no record of such debentures is kept in the Register of Debenture holders. Payment of interest is made on the production of coupons attached to the debenture. No legal formalities are required for their transfer and no formal notice or intimation to the company is necessary.
(iv) Registered Debentures: These arcs the debentures, in respect of which the names, addresses, and particulars of holdings of the debenture holders are entered in a register kept by the company. Such debentures can be transferred only by transfer deed or intimation to the company and not mere delivery.
(v) Convertible and Non-Convertible Debentures: In the case of convertible debentures, the debenture holders arc gave the option to convert their debentures into equity shares after a specified period. Debenture holder has the option of exchanging the whole or a part of the number of their debentures for shares. In the case of non-convertible debentures, these are those debentures that do not earn the right to be converted into equity shares.
APPEARS IN
संबंधित प्रश्न
The debenture holder is owner of the company.
On 1st April 2014, KK Ltd. invited applications for issuing 5,000 10% debentures of Rs 1,000 each at a discount of 6%. These debentures were repayable at the end of the 3rd year at a premium of 10%. Applications for 6,000 debentures were received and the debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded.
The directors decided to transfer the minimum amount to Debenture Redemption Reserve on 31.3.2016. On 1.4.2016, the company invested the necessary amount in 9% bank fixed deposit as per the provisions of the Companies Act 2013. A tax was deducted at source by bank on interest @10% p.a.
Pass the necessary journal entries for issue and redemption of debentures. Ignore entries relating to writing off a loss on issue of debentures and interest paid on debentures.
Answer in a sentence only.
What is a ‘Convertible Debenture’?
Write one word/term/phrase which can substitute the following
The debentures of which payment is made on the expiry of specific period.
Write one word/term/phrase which can substitute the following
The debentures which are not converted into shares.
Write one word/term/phrase which can substitute the following
The debentures which are transferred by way of delivery.
Select most appropriate alternative from those given below :
The debentures which are converted into shares is called____________.
State to whether the following statement is True/False.
The unregistered debentures are known as naked debentures.
State to whether the following statement is True/False.
Unsecured debentures are safer than secured debentures.
