Maharashtra Board Class 12 Secretarial Practice Chapter 8 Correspondence With Depositors PDF Download

Correspondence With Depositors

This chapter has three main topics:

8.1 Precautions to be taken by the Secretary while Corresponding with Depositors.

8.2 Circumstances under which a Secretary has to enter into correspondence with Depositors

8.3 Specimen Letters

Introduction

Deposit is a short term source of finance of the company. It is used to satisfy short term working capital needs of the company. A company cannot accept deposits for a period less than 6 months or more than 36 months.

The company is liable to pay regular interest on the deposits at a fixed rate along with the principal amount on maturity.

Company Secretary has to conduct correspondence with depositors regarding - Acceptance of deposits, payment of interest on deposits, renewal of deposits, repayment of deposits and so on.

Secretary conducts such correspondence on behalf of the company and also as per the instructions of the Board of Directors. The Secretary should be very cautious and careful while corresponding with depositors of the company.

Precautions To Be Taken By The Secretary While Corresponding With Depositors

The following precautions or points should be kept in mind by the Secretary while corresponding with depositors:

1. Legal Provisions: The Secretary should ensure that provisions relating to invitation, acceptance, renewal and repayment of deposits are duly complied with by the company, while corresponding with depositors. Secretary should observe the legal provisions.

2. Courtesy: Polite replies are essential while writing letters to the depositors. Rude words should be strictly avoided.

3. Prompt Response: The Secretary should give prompt replies to the queries and complaints of the depositors without any delay.

4. Accuracy: Letter written to the depositors should be accurate and precise. Factual and correct information should be provided to them.

5. Image and Goodwill: While writing letters, the Secretary has to maintain the goodwill of the company.

6. You Attitude: Letter should be written from depositors point of view, after taking into consideration the requirements of the depositors.

Teacher's Note

A company secretary must be very careful and polite when writing to people who give money to the company. Just like your teacher keeps proper records of your school fees, the company secretary must keep proper records of all deposits.

Exam Trick

Remember: When writing to depositors, think of them as your customers. Be polite, quick, and accurate - like you would be with your parents' money!

Points to Remember

The Secretary must follow all legal rules when writing to depositors.
The Secretary must be polite and write quick replies.
Letters must be correct, accurate, and easy to understand.
The Secretary must protect the company's good reputation.
The Secretary must keep all deposit information private and secret.

Circumstances Under Which A Secretary Has To Enter Into Correspondence With Depositors

The Secretary has to communicate various decisions of the Board of Directors to the depositors.

The following are the few circumstances when the Secretary enters into correspondence with the Depositors:

1. Thanking depositors for depositing amount and showing faith in the company.

2. Intimation about payment of interest through -

a) Interest Warrant

b) Electronic payment of Interest

3. Letter informing about renewal of deposits.

4. Informing depositors about repayment of deposit on maturity.

Teacher's Note

The secretary writes different types of letters to depositors at different times. For example, when someone deposits money, the company sends a thank you letter, just like your mother thanks the milkman for delivering milk every morning.

Exam Trick

Remember the four main letters: Thank you, Interest payment, Renewal, and Repayment. These are the four main reasons a secretary writes to depositors!

Points to Remember

The Secretary says thank you when someone deposits money with the company.
The Secretary tells depositors when their interest money is ready to be paid.
The Secretary writes to ask if the depositor wants to continue the deposit for more time.
The Secretary tells depositors when they will get their money back.
Each letter has a specific purpose and should be written at the right time.

Specimen Letters

1. Thanking Depositors For Depositing Amount With The Company

The letter of thanks is sent to the depositors by a company immediately after receiving the deposits. This letter gives detailed information regarding the deposits i.e. Amount of deposit, Date of deposit, Period of deposit, etc.

The Deposit Receipt which is a proof of receipt of deposit is sent to the depositor along with this letter within 21 days from the date of acceptance of deposits.

GURU INDUSTRIES LTD.

Registered Office: 45, Guru Towers, J. M. Road, Pune 411 021.

CIN: L30121 MH 2007 PLC070504

Phone: 020-12110072 Website: www.gurulimited.com

Fax: 020-30040077 E-mail: guru30@gmail.com

Ref. No. G/DEP/09/19-20 Date: 10th April, 2019

Mr. Sharangdhar Naik

78/68, Guru Appartment, Shaniwar Peth,

Pune - 411 011.

Sub. : Thanking Depositor for Fixed Deposit

Dear Sir,

We are in receipt of your application dated 5th April 2019 for investment of ₹ 1,00,000 in the fixed deposit as per terms and conditions stated in advertisement for a period of 2 years. We are thankful to you for the initiative and the trust you have shown in depositing a substantial amount in our company.

The details of deposits accepted are given in the following schedule:

The Board of Directors of our company expresses its gratitude for depositing money in our company.

We assure you of our best services and thank you for the confidence shown in our company.

Thanking you,

Yours faithfully,

For Guru Industries Ltd.

Sign

Mr. Nitin Modi

General Manager and Company Secretary

Encl: Fixed Deposit Receipt No. 678

Teacher's Note

When a student opens a new bank account, the bank sends them a letter saying thank you. Similarly, when someone deposits money with a company, the company secretary sends a thank you letter to make them feel valued and build good trust.

Exam Trick

Remember: Thank you letter = First letter sent to depositor. It shows the company is polite and professional, just like a shopkeeper saying thank you when you buy something!

Points to Remember

The thank you letter is sent immediately after receiving a deposit.
The letter includes all details about the deposit like amount and time period.
A Deposit Receipt is sent with the thank you letter within 21 days.
The letter should sound warm and grateful to the depositor.
The Board of Directors approves this letter to show the company's respect.

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