Question

Distinguish between CRR and DRR

Answer 1

Explanation:

DRR - Debenture Redemption Reserve

CRR - Capital Redemption Reserve

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Answer 2

CRR stands for Capital Redemption Reserve and DRR stands for Debenture Redemption Reserve.

Debenture Redemption Reserve is mainatined for the redemption of debenture, so that when debentures are redeemed they can be paid by this reserve, so it is created .

This provision was added in the Indian Companies Act 1956.

It is made to minimise the default in payment on repayment of debentures.

Capital Redemtption Reserve is a reserve in which amounts are transferred for the redemption of shares.

This Act came up in Companies Act 2006.