Utsav Ltd. (an unlisted company) decided to redeem its 4,000, 9% Debentures of ₹ 100 each which were issued at a discount of 8%, and were redeemable at a premium of 10%. The amount transferred to Debenture Redemption Reserve will be ______.

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Utsav Ltd. (an unlisted company) decided to redeem its 4,000, 9% Debentures of ₹100 each which were issued at a discount of 8%, and were redeemable at a premium of 10%. The amount transferred to Debenture Redemption Reserve will be ₹ 40,000. Explanation: Face Value of Debentures = 4,000 $\times$ ₹ 100 = ₹ 4,00,000 DRR Rate for an Unlisted Company (as per present SEBI Rules/Rule 18(7) of Companies (Share Capital & Debentures) Rules, 2014, amended from 16‑Aug‑2019) = 10% DRR Amount Required = 10% of ₹ 4,00,000 = ₹ 40,000

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