Debenture example sentences

Section 117C will apply to non-convertible portion of debentures issued whether they are fully or partly paid.Debenture holders are, therefore, termed as creditors of the company.When a company purchases its own debentures in the open market for the purpose of immediate cancellation, the purchase and cancellation of such debentures are termed as redemption by purchase in the open market.The sources for raising borrowed funds include loans from commercial banks, loans from financial institutions, issue of debentures, public deposits and trade credit.Loss on issue of debenture account is a capital loss and it is to be written-off gradually against the profit and loss account or securities premium account.A shareholder is an owner of the company whereas a debenture holder is only a loan creditor.These new shares or debentures can be issued at par, at a discount or at a premium.Debentures are of various types such as: secured and unsecured debentures redeemable and perpetual debentures, convertible and non-convertible debentures, zero coupon rate and specific rate, registered and bearer debentures.According, to section 2(12) of The Companies Act,1956 'Debenture' includes Debenture Stock, Bonds and any other securities of a company whether constituting a charge on the assets of the company or not.In fact, at this stage the Debenture Redemption Fund Investments are encashed and the amount so obtained is used for the redemption of debentures.The intending investors apply for debentures on the basis of the prospectus issued by the company.It may be noted that this method is applicable only to convertible debentures.No DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures.In case of the whole business being taken over if the amount of debentures issued is more than the amount of the net assets taken over, Its difference (excess) will be treated as value of goodwill and the same shall also be debited while passing the journal entry for the purchase of vender's business (see Illustration 10).Transfer Debenture Redemption Fund A/c balance to General Reserve.