Development rebate reserve

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1 Points Posted on 11 July 2021

Can development rebate reserve,share forfeiture  acc be used for redemption of debentures

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On 11 July 2021 at 13:55 Report
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This discussion clarifies the use of Development Rebate Reserve (DRR) for redeeming debentures. While DRR, funded by profits, cannot technically be used for this purpose, share forfeiture reserves are available as they are not claimable by shareholders. Therefore, DRR is generally not an option for debenture redemption.

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My grammar is 💯 good I
7306 Points Posted on 11 July 2021

No technically as the drr requires a portion of profits to be transferred to its account to repay liabilities.

Yes you can use share forfeiture reserve as this amount cannot be claimed by shareholders. 

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On 11 July 2021 at 18:14
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Chartered Accountant
24588 Points Posted on 12 July 2021
No you cannot use development rebate reserve for redemption of debentures
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On 12 July 2021 at 05:53

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