Issue of Debentures — Secretarial Practice STD 12 Commerce / Arts — Question

Can the retained earnings be converted into capital?

The return on investment which he receives is fixed or fluctuating.

Should the company appoint a Debenture trustee?

DDS financial plans to raise ₹ 10 crores by issuing secured, Non-convertible debentures. However, as per the Articles of Association, the board of directors has authority only to raise up to 5 crores. They are also considering whether to go for a private placement or make a public offer. Please advise them on the following:

According to you, which type of share Mr. Satish will choose to invest in.

What type of source retained earning is?

A Company has an export order which is to be completed by June 15. It feels it may fall short of funds (₹ 5,00,000) as all its investments are likely to mature after July 15. Question (a) Does it cancel the export order? Question (b) What financial arrangements are to be made if it has to complete the order? Question (c) What is the amount of interest it has to pay?

Should the company create a charge on its assets?

Is the proposed issue within the borrowing powers of the board?

What does he receive as a return on investment?