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Question
Sunrise Ltd. a listed NBFC, had outstanding 20,000, 7% Debentures of ₹ 100 each, due for redemption on 31st March, 2022.
As per the provisions of the Companies Act, 2013, what amount, if any, does the company need to transfer to Debenture Redemption Reserve, before it can redeem the debentures?
Solution
Sunrise Ltd, a listed NBFC, is not required to transfer any amount to Debenture Redemption Reserve (DRR) before redeeming its debentures because all listed NBFCs' are exempted from the provision of requirement of DRR under Rule 18(7)(b) of companies (share capital and debentures) Rules, 2014, as per provisions of Companies Act, 2013.
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The portion of uncalled capital to be called only in the event of winding up of the company is called ____________.
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