Young India Ltd. Had issued following debentures :
(a) 1,00,000 `10%` fully convertible debentures of Rs. 100 each on 1st April, 2016 redeemable by conversion after 5 years.
(b) 20,000, `10%` Debentures of Rs. 100 each redeemable after 4 years, `25%` Debentures in Cash and `75%` by conversion.
State the amount of DRR required to be created as per the Companies Act, 2013.

Answer

(a) DRR is not required to be created as the debentures are fully convertible.
(b) DRR is to be created for non-convertible part of the debentures
outstanding i.e., `25%` of Rs. 5,00,000 = Rs. 1,25,000.