Match List-I with List-II

List-I	List-II
(A) Secured Debentures	(I) Which are payable on the expiry of the specific period either in lump sum or in instalments during the life time of the company.
(B) Unsecured Debentures	(II) Debentures where a charge is created on the assets of the company for the purpose of payment in case of default.
(C) Redeemable Debentures	(III) These debentures are repayable on the winding-up of a company or on the expiry of a long period.
(D) Irredeemable Debentures	(IV) Debentures do not have a specific charge on the assets of the company.

Choose the correct answer from the options given below:

Understanding the characteristics of each type of debenture:

Secured Debentures are backed by a charge on company assets. If the company defaults, debenture holders can recover their money from these charged assets. This matches with (II) - "Debentures where a charge is created on the assets of the company for the purpose of payment in case of default."

Unsecured Debentures have no charge on assets and are also called naked debentures. Holders are treated as general creditors in case of default. This matches with (IV) - "Debentures do not have a specific charge on the assets of the company."

Redeemable Debentures have a fixed maturity period and the company repays the principal either in one lump sum or through installments during its operational life. This matches with (I) - "Which are payable on the expiry of the specific period either in lump sum or in instalments during the life time of the company."

Irredeemable Debentures (also called perpetual debentures) have no fixed redemption date and are only repaid when the company winds up or after an extremely long period. This matches with (III) - "These debentures are repayable on the winding-up of a company or on the expiry of a long period."

The correct matching is:

• (A) → (II)
• (B) → (IV)
• (C) → (I)
• (D) → (III)

Correct Answer: Option 1