Companies issued debentures in recent years
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Debentures is money borrowed from the general public by issuing certificates for a fixed period of time and a fixed rate of interest.
Features of debentures :
1.Debentyres are creditors of the company carrying a fixed rate of interest.
2.They are redeemed at a fixed period of time.
3.Interest payable on a debenture is a charge against profit and hence it is a tax deductible expenditure.
4.Debentures holders do not enjoy any voting right.
Features of debentures :
1.Debentyres are creditors of the company carrying a fixed rate of interest.
2.They are redeemed at a fixed period of time.
3.Interest payable on a debenture is a charge against profit and hence it is a tax deductible expenditure.
4.Debentures holders do not enjoy any voting right.
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