Which of the following is true about debentures-

(A) Debenture is a part of owned capital.

(B) The payment of interest on debentures is a charge on the profits of the company.

(C) The debentures cannot be issued at a discount of more than 10% of the face value.

(D) Redeemable debentures are those debentures which are payable on the expiry of the specific period.

Choose the correct answer from the options given below:

Let me evaluate each statement about debentures:

(A) Debenture is a part of owned capital.

This is incorrect. Debentures represent borrowed capital, not owned capital. Debenture holders are creditors of the company, not owners. They don't have voting rights or ownership stake in the company.

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(B) The payment of interest on debentures is a charge on the profits of the company.

This is correct. Interest on debentures is a mandatory payment and is treated as a financial expense. It must be paid irrespective of whether the company earns profit or suffers loss. The interest reduces the profit of the company as it is charged to the Statement of Profit and Loss.

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(C) The debentures cannot be issued at a discount of more than 10% of the face value.

This is incorrect. There is no such legal restriction on the maximum discount at which debentures can be issued. Companies can issue debentures at any discount as decided by the Board of Directors, subject to compliance with other applicable provisions of the Companies Act.

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(D) Redeemable debentures are those debentures which are payable on the expiry of the specific period.

This is correct. Redeemable debentures are those which the company undertakes to repay after a specified period or on a predetermined date as per the terms of issue. These are repaid either at maturity or in installments during the tenure.

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Since statements (B) and (D) are true, the correct answer is Option 4: (B) and (D) only.