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DRR Investment
Accountancy
If we calculate DRR Investment based on value of debentures maturing between 30/04/y1 and 31/03/y2, will the debentures maturing between 01/04 to 29/04 of y1 be unaccounted?
Answers (9)
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Thread Starter
Aswin Chandarbro you might want to check video 5 of chapter 7 in our paid course, there i suppose its said 15% of value of debentures maturing between the period(30/04/y1 to 31/03/y2 ) should be invested in DRR investments.
It has to be maturing during the year ending on 31st March. First part of explanation is fine. Next part can be conflicting. Thanks for highlighting. Will update.
Thread Starter
Aswin Chandarbro you might want to check video 5 of chapter 7 in our paid course, there i suppose its said 15% of value of debentures maturing between the period(30/04/y1 to 31/03/y2 ) should be invested in DRR investments.
Its the maturing period, But we invest 15% of that value which will mature at 31/3/X2 and invest in 30/4. The value of maturing will get accumulated and we find the maturing value of deb and then invest 15% of that I suppose. But ur doubt is whether we account the period of April ,where they have said we need to consider value of maturing between 30th April and 31st March , I think it will be unaccounted.
Sugam SM
Its the maturing period, But we invest 15% of that value which will mature at 31/3/X2 and invest in 30/4. The value of maturing will get accumulated and we find the maturing value of deb and then invest 15% of that I suppose. But ur doubt is whether we account the period of April ,where they have said we need to consider value of maturing between 30th April and 31st March , I think it will be unaccounted.
Firstly I don't get what you are saying and I think I wouldn't be left unaccounted because then the companies can just issue all debentures that will mature between that period and escape the DRR investment requirement. So I suppose the actual provision is 15% of value of debentures maturing during the year 01/04/Y1 to 31/03/Y2 should be invested and the time limit is that it should be invested before 30/04/y1. @moderators kindly clarify after reviewing the above mentioned video.
Thread Starter
Aswin ChandarFirstly I don't get what you are saying and I think I wouldn't be left unaccounted because then the companies can just issue all debentures that will mature between that period and escape the DRR investment requirement. So I suppose the actual provision is 15% of value of debentures maturing during the year 01/04/Y1 to 31/03/Y2 should be invested and the time limit is that it should be invested before 30/04/y1. @moderators kindly clarify after reviewing the above mentioned video.
I have already replied above. It has to be for year ended 31st March Y2.
CA Suraj Lakhotia Admin
I have already replied above. It has to be for year ended 31st March Y2.
So just to be simple whatever is outstanding as on 31/3/X2 15% should be invested in 30/4/X1.
CA Suraj Lakhotia Admin
I have already replied above. It has to be for year ended 31st March Y2.
Pardon me sir I didn't refresh the page and so saw your message after I posted that question. Thanks a lot for your response sir
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