Which of the following are the correct statements regarding debentures/debenture interest?(A) The payment of interest on debentures is a charge on the profits of the company.(B) Redeemable debentures are those debentures which are payable on the expiry of the specific period.(C) Debentures cannot be converted into shares.
- A(A), (C) and (D) only
- B(A), (B) and (D) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Let's assess the debenture statements:(A): True, debenture interest is a charge against profit and must be paid regardless of earnings.(B): True, redeemable debentures are explicitly repayable after a defined timeline.(C): False, convertible debentures can definitely be converted into equity shares.(D): True, perpetual debentures carry no fixed maturity date and are classified as irredeemable debentures.Therefore, statements (A), (B), and (D) are correct.