Debenture example sentences

Specific Coupon Rate Debentures: These debentures are issued with a specified rate of interest, which is called the coupon rate.Recently, the board of Titan Industries has approved the issue of partly convertible debentures on a rights basis to raise around Rs.The creation of Debenture Redemption Reserve is obligatory only for non-convertible debentures and non-convertible portion of partly convertible debentures.Debenture is a written instrument acknowledging a debt under the common seal of the company.The new shares or debentures may be issued at par, at a discount or at a premium.It may be noted that when debentures are issued at a discount and are redeemable at a premium, the amount of discount issue is also debited to 'Loss on Issue of Debentures'.Non-convertible debentures Where a company issued debentures after the commencement of this Act, it shall create a Debenture Redemption Reserve for the redemption of such debentures, to which adequate amount shall be credited, from out of its profit every year until such debentures are redeemed.Secured debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.The discount on issue of debentures can be written-off either by debiting it to profit and loss account or out of the capital profits, if any, during the life time of debentures.Hence, most companies turn to raising long-term funds also through debentures which are issued either through the route of private placement or by offering the same to the public.However, a floating charge may be created on these debentures by default.Debentures can be redeemed either at par or at premium.Discount on issue of debentures is a capital loss and is shown on the asset side of the balance sheet under the head “Miscellaneous Expenditure” till it is written-off.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 return on shares is known as dividend while the return on debentures is called interest.