False Statement: The issue price and redemption value of debentures cannot differ.

Debentures are long-term debt instruments that companies issue to raise funds from the public. They are a form of borrowing for the company and are backed by the company's assets. Debentures may be issued with fixed or floating interest rates, and they have a specified maturity date upon which the company must repay the principal amount to the debenture holders.

Explanation:

1. Debenture is a form of public borrowing:
Debentures are indeed a form of public borrowing. When a company issues debentures, it offers them to the public, allowing individual investors and institutional investors to lend money to the company. In return, the company promises to pay regular interest payments and repay the principal amount at maturity.

2. It is customary to prefix debentures with the agreed rate of interest in case of fixed interest:
When a company issues debentures with a fixed interest rate, it is customary to prefix the debentures with the agreed rate of interest. This helps investors understand the interest they will receive on their investment. For example, if a company issues debentures with a fixed interest rate of 8%, the debentures may be referred to as "8% Debentures."

3. Debenture interest is a charge against profits:
Debenture interest is indeed a charge against profits. When a company pays interest on its debentures, it is treated as an expense in the company's income statement. This interest expense reduces the company's profits, and therefore, it is considered a charge against profits.

4. The issue price and redemption value of debentures cannot differ:
This statement is false. The issue price and redemption value of debentures can differ. The issue price is the price at which the debentures are initially offered to investors. It is determined based on various factors such as market conditions, interest rates, and the company's credit rating.

On the other hand, the redemption value is the amount that the company agrees to repay to debenture holders at maturity. It is typically equal to the principal amount borrowed. However, the issue price and redemption value can differ if the company offers the debentures at a discount or a premium. If the debentures are issued at a discount, the redemption value will be higher than the issue price. Conversely, if the debentures are issued at a premium, the redemption value will be lower than the issue price.

Therefore, option D is the false statement because the issue price and redemption value of debentures can differ based on the terms of the issuance.