Maharashtra Board Class 12 Secretarial Practice Chapter 8 Correspondence with Depositors Solutions

12th Secretarial Practice Chapter 8 Exercise Correspondence With Depositors Practical Problems Solutions Maharashtra Board

Correspondence With Depositors 12th Secretarial Practice Chapter 8 Solutions Maharashtra Board

Class 12 Secretarial Practice Chapter 8 Exercise Solutions

Exercise 1A. Select The Correct Answer From The Options Given Below And Rewrite The Statements.

Question 1. Depositors are ______ of a company.
(a) members
(b) creditors
(c) debtors
Answer: (b) creditors
In simple words: Depositors lend money to the company, making them creditors who are owed money by the company.

🎯 Exam Tip: Understanding the relationship between depositors and the company (creditor vs. owner) is fundamental for company law and finance questions.

Question 2. Depositors provide ______ capital to the company.
(a) short term
(b) long term
(c) medium-term
Answer: (a) short term
In simple words: Deposits are typically accepted by companies for a relatively short duration, making them a source of short-term capital.

🎯 Exam Tip: Differentiate between short-term and long-term sources of finance to score well on conceptual questions.

Question 3. A company cannot accept deposit for more than ______ months.
(a) 24
(b) 36
(c) 45
Answer: (b) 36
In simple words: Legal regulations limit the maximum period for which a company can accept public deposits, typically to 36 months.

🎯 Exam Tip: Memorize the statutory limits for deposit periods as these are common factual questions in exams.

Question 4. A company cannot accept deposit for less than ______ months.
(a) 6
(b) 3
(c) 5
Answer: (a) 6
In simple words: Companies are generally restricted from accepting deposits for periods shorter than 6 months to ensure a certain level of stability in funding.

🎯 Exam Tip: Remember both the minimum and maximum periods for deposits, as they are key regulatory requirements.

Question 5. Deposits are ______ loans of the company.
(a) fixed
(b) short term
(c) long term
Answer: (b) short term
In simple words: Company deposits are typically classified as short-term loans because they have a defined and relatively short maturity period.

🎯 Exam Tip: Clarify the difference between fixed, short-term, and long-term loans in the context of company finance.

Question 6. Public deposits are accepted to meet the requirement of ______ capital.
(a) fixed
(b) working
(c) owned
Answer: (b) working
In simple words: Companies often raise public deposits to finance their daily operational needs and short-term expenses, which fall under working capital.

🎯 Exam Tip: Understand the different types of capital (fixed, working, owned) and their sources for effective financial analysis.

Question 7. ______ has the power to invite deposits from public.
(a) Shareholders
(b) Auditors
(c) Board of Directors
Answer: (c) Board of Directors
In simple words: The Board of Directors, as the governing body, makes the decision and has the authority to invite deposits from the public, following legal guidelines.

🎯 Exam Tip: Identify the roles and responsibilities of different company stakeholders, particularly the Board of Directors, in financial decisions.

Question 8. Rate of interest on deposits is ______
(a) fixed
(b) fluctuating
(c) moderate
Answer: (a) fixed
In simple words: The interest rate on deposits is typically fixed at the time of deposit, providing predictability for both the company and the depositor.

🎯 Exam Tip: Note that deposit interest rates are generally fixed, unlike some other investment instruments whose returns may fluctuate.

Question 9. The return or income for the investment of money on deposits is called ______
(a) dividend
(b) interest
(c) discount
Answer: (b) interest
In simple words: When you lend money through a deposit, the compensation you receive for the use of your money is called interest.

🎯 Exam Tip: Clearly distinguish between 'interest' (return on debt) and 'dividend' (return on equity) for accurate financial terminology.

Exercise 1B. Match The Pairs.

Question 1.

🎯 Exam Tip: Pay close attention to definitions and associations for matching pair questions, as they test foundational knowledge.

Exercise 1C. Write A Word Or A Term Or A Phrase That Can Substitute Each Of The Following Statements.

Question 1. Return on investment on deposit.
Answer: Interest
In simple words: Interest is the financial return received by a depositor for lending their money to a company.

🎯 Exam Tip: Use precise financial terminology; "interest" is the specific term for earnings on deposits or loans.

Question 2. The instrument for payment of interest on the deposit.
Answer: Interest Warrant
In simple words: An Interest Warrant is a document, similar to a cheque, used by companies to pay interest due to depositors.

🎯 Exam Tip: Know the specific documents used for various financial transactions, such as an interest warrant for interest payments.

Question 3. An acknowledgment of the fixed deposit accepted by a company.
Answer: Fixed Deposit Receipt
In simple words: A Fixed Deposit Receipt (FDR) serves as proof that a company has accepted a fixed deposit from an individual.

🎯 Exam Tip: Understand the purpose and importance of a Fixed Deposit Receipt as a legal document for depositors.

Question 4. Return of deposits on the maturity date.
Answer: Repayment of deposit
In simple words: When a deposit reaches its maturity, the company returns the principal amount to the depositor, which is called repayment.

🎯 Exam Tip: Use "repayment" specifically for the return of the principal amount of a deposit or loan at maturity.

Question 5. The maximum period of deposits.
Answer: 36 months
In simple words: Regulatory guidelines set the longest duration for which a company can hold public deposits, which is 36 months.

🎯 Exam Tip: Recall the maximum statutory period for deposits, as this is a common factual detail tested in exams.

Exercise 1D. State Whether The Following Statements Are True Or False.

Question 1. Fixed deposit is a short-term source of finance for the company.
Answer: True
In simple words: Fixed deposits are typically accepted for periods ranging from 6 to 36 months, making them a short-term funding option for companies.

🎯 Exam Tip: Understand the typical duration of fixed deposits to classify them correctly as a short-term or long-term financial source.

Question 2. Fixed deposit holder is a creditor of the company.
Answer: True
In simple words: A fixed deposit holder lends money to the company and expects repayment with interest, thus making them a creditor.

🎯 Exam Tip: Remember the fundamental distinction: a depositor is a creditor, not an owner, of the company.

Question 3. Deposits are invited by the company without issuing statutory advertisement.
Answer: False
In simple words: Companies inviting public deposits are legally required to issue an advertisement or circular, adhering to specific statutory provisions.

🎯 Exam Tip: Be aware of the legal formalities and statutory requirements, such as issuing advertisements, when companies invite deposits.

Question 4. Fixed deposit holders are entitled to receive dividends.
Answer: False
In simple words: Fixed deposit holders receive interest as their return, not dividends, which are paid to shareholders (owners).

🎯 Exam Tip: Reiterate the difference between interest (for creditors/depositors) and dividends (for shareholders).

Question 5. A private company cannot accept deposits from the general public.
Answer: True
In simple words: Private companies are restricted by law from soliciting or accepting deposits from the general public; they can only accept deposits from their members or directors.

🎯 Exam Tip: Understand the legal distinctions and limitations on private vs. public companies regarding public deposit acceptance.

Question 6. Depositors are given voting rights.
Answer: False
In simple words: Depositors are creditors and do not have voting rights, which are exclusively held by shareholders as owners of the company.

🎯 Exam Tip: Voting rights are a privilege of ownership (shares), not debt (deposits); distinguish these roles carefully.

Exercise 1E. Find The Odd One.

Question 1. Dividend, Depositor, Deposit Receipt
Answer: Dividend
In simple words: Dividend is a return to shareholders, while Depositor and Deposit Receipt relate to deposits, making dividend the odd one out.

🎯 Exam Tip: Group related financial terms to identify the one that doesn't fit the category of deposits.

Question 2. Trust Deed, Depository, Deposit Receipt
Answer: Depository
In simple words: Trust Deed and Deposit Receipt are documents related to deposits, whereas a Depository is an institution for holding securities, making it the odd one.

🎯 Exam Tip: Understand the function of each term; a depository is a system, while the others are documents or roles related to deposits.

Exercise 1F. Complete The Sentences.

Question 1. Depositors are the ______ of the company.
Answer: Creditors
In simple words: Depositors are individuals or entities who have lent money to the company, thus making them creditors.

🎯 Exam Tip: Reinforce the definition of depositors as creditors to correctly complete such sentences.

Question 2. The ______ must be cautious and careful while writing letters to the depositors.
Answer: Secretary
In simple words: The company secretary handles communication with depositors and must exercise care and caution to maintain goodwill and compliance.

🎯 Exam Tip: Recognize the company secretary's pivotal role in ensuring proper and respectful communication with stakeholders like depositors.

Question 3. Deposit is a ______ term source of finance of the company.
Answer: Short
In simple words: Deposits are generally raised for a limited period, typically less than three years, making them a short-term financial resource.

🎯 Exam Tip: Understand that deposits typically fulfill short-term funding needs due to their specified maturity periods.

Question 4. A company can accept deposits for the minimum period of ______ months.
Answer: 6 months
In simple words: Companies are legally required to accept deposits for a duration of at least 6 months.

🎯 Exam Tip: Remember the minimum legal period for deposits, as it's a direct statutory requirement.

Question 5. Depositors are entitled to receive ______ at fixed rate.
Answer: Interest
In simple words: Depositors lend money to the company and, in return, receive interest at a predetermined, fixed rate.

🎯 Exam Tip: Distinguish between interest, which is received by depositors, and dividends, which are received by shareholders.

Exercise 1G. Select The Correct Option From The Bracket.

Question 1.

🎯 Exam Tip: For 'select the correct option' and matching questions, review all options thoroughly before making a selection to ensure accuracy.

Exercise 1H. Answer In One Sentence.

Question 1. Who is the depositor?
Answer: The person who keeps his/her money for a fixed period of time with the company is known as 'Depositor'.
In simple words: A depositor is an individual or entity who entrusts money to a company for a specified duration in return for interest.

🎯 Exam Tip: Provide a concise and accurate definition, focusing on the key actions and relationship of a depositor with the company.

Question 2. What is the return on deposit?
Answer: Fixed-rate of interest is provided as the return on a deposit.
In simple words: The return for placing a deposit with a company is a predetermined, fixed rate of interest.

🎯 Exam Tip: Clearly state "fixed-rate of interest" to fully answer the question about the nature of the return on deposits.

Question 3. What is Interest Warrant?
Answer: An interest warrant is an instrument of payment of interest.
In simple words: An Interest Warrant is a formal document used by a company to make interest payments to its depositors.

🎯 Exam Tip: Define an interest warrant by its primary function: an instrument for paying interest, distinct from other payment methods.

Question 4. What is a renewal of deposit?
Answer: A process of continuing the deposit for an additional time period after maturity of investment (deposit) is called "Renewal of Deposit".
In simple words: Renewal of deposit means extending the period of an existing deposit even after its initial maturity date, rather than withdrawing the funds.

🎯 Exam Tip: Explain renewal as the act of extending a deposit's term post-maturity, highlighting its difference from fresh deposits.

Question 5. Which document is enclosed along with the Renewal Letter?
Answer: Renewal Deposit Receipt is enclosed along with the Renewal Letter.
In simple words: When a deposit is renewed, the company provides a new Renewal Deposit Receipt to the depositor as proof of the extended investment.

🎯 Exam Tip: Identify specific documents associated with deposit processes, such as the Renewal Deposit Receipt for renewed deposits.

Question 6. When will the company return the deposits?
Answer: The company will return the deposit amount at the time of maturity (after the expiry of the fixed period).
In simple words: The company is obligated to repay the deposit principal to the depositor once the agreed-upon fixed period reaches its maturity.

🎯 Exam Tip: The maturity date is the critical point for the repayment of deposits; this concept is fundamental for understanding deposit terms.

Question 7. What is the minimum and maximum period of deposit?
Answer: The deposit can be accepted for a minimum period of 6 months and a maximum period of 36 months.
In simple words: As per regulations, a company can accept deposits for a duration no shorter than 6 months and no longer than 36 months.

🎯 Exam Tip: Clearly state both the minimum and maximum periods as exact figures, as this is a precise factual requirement.

Exercise 1I. Correct The Underlined Words And Rewrite The Following Sentence.

Question 1. Depositors are owners of the company.
Answer: Depositors are creditors of the company.
In simple words: Depositors lend money, making them creditors, while owners (shareholders) hold equity in the company.

🎯 Exam Tip: Distinguish between ownership (shareholders) and lending (depositors/creditors) in company structure.

Question 2. Deposits are the internal source of financing.
Answer: Deposits are the external source of financing.
In simple words: Deposits come from external parties (the public) rather than being generated from within the company's operations or retained earnings.

🎯 Exam Tip: Classify financial sources correctly as internal (e.g., retained earnings) or external (e.g., deposits, loans, shares).

Question 3. Deposit is a long-term source of capital.
Answer: Deposit is a short-term source of capital.
In simple words: Deposits are typically accepted for a maximum of 36 months, which categorizes them as a short-term source of capital.

🎯 Exam Tip: Remember the duration limits (6-36 months) to correctly identify deposits as a short-term financing instrument.

Question 4. Depositors are entitled to receive dividends.
Answer: Depositors are entitled to receive interest.
In simple words: As lenders, depositors receive interest on their funds, while dividends are distributed to company shareholders.

🎯 Exam Tip: Differentiate clearly between the returns for debt (interest) and equity (dividends) in company finance.

Exercise 1J. Arrange In Proper Order.

Question 1.
(a) Renewal of deposit
(b) Acceptance of deposit
(c) Deposit Receipt
Answer:
(a) Acceptance of deposit
(b) Deposit Receipt
(c) Renewal of deposit
In simple words: The typical sequence of events is accepting the deposit first, then issuing a receipt, and finally, if desired, renewing the deposit.

🎯 Exam Tip: Understand the chronological flow of deposit-related processes to correctly order them.

Question 2.
(a) Payment of interest
(b) Deposit Receipt
(c) Acceptance of deposits
Answer:
(a) Acceptance of deposits
(b) Deposit Receipt
(c) Payment of interest
In simple words: The logical order of deposit operations starts with accepting the deposit, followed by issuing a receipt, and finally paying interest.

🎯 Exam Tip: Focus on the natural progression of financial transactions related to deposits for accurate sequencing.

2. Explain The Following Terms/Concepts.

Question 1. Depositor
Answer: The person who keeps deposits with the company for a fixed period of time is known as 'Depositor'.
In simple words: A depositor is someone who provides funds to a company as a loan for a specified duration, earning interest in return.

🎯 Exam Tip: Define key terms clearly and precisely, focusing on the role and action of the person in the context of company deposits.

Question 2. Deposit
Answer: Deposit is a short-term source of finance of the company and it is used in order to satisfy the short-term working capital needs of the company.
In simple words: A deposit is a temporary loan from the public to a company, primarily used to fund its immediate operational expenses and working capital requirements.

🎯 Exam Tip: Emphasize that deposits are a short-term external financing source for working capital requirements.

Question 3. Interest on deposit
Answer: Interest on deposit refers to the return on the investment of money in deposits.
In simple words: Interest on deposit is the payment made by the company to the depositor as compensation for using their money over a period.

🎯 Exam Tip: Explain interest as the compensation or return earned by depositors for their investment.

Question 4. Deposit Receipt
Answer: A deposit Receipt is an acknowledgment of deposit money accepted by the company.
In simple words: A Deposit Receipt is a formal document issued by a company to acknowledge that it has received money as a deposit from an individual or entity.

🎯 Exam Tip: Highlight that a Deposit Receipt acts as proof of investment and a legal acknowledgment of the company's liability.

Question 5. Renewal of deposit
Answer: Renewal of Deposit means accepting the same deposit for an additional period of time after its maturity.
In simple words: Renewal of a deposit allows the depositor to extend their existing investment with the company for a new term after it matures.

🎯 Exam Tip: Explain renewal as the act of extending a deposit's term post-maturity, distinguishing it from a new deposit.

Question 6. Repayment of Deposit
Answer: Refunding the amount of deposit on the maturity of tenure of deposits is known a 'Repayment of Deposit'.
In simple words: Repayment of Deposit refers to the company returning the principal amount of the deposit to the depositor once the deposit term ends.

🎯 Exam Tip: Focus on "refunding the amount" and "maturity of tenure" as key components of the definition of deposit repayment.

3. Answer In Brief.

Question 1. Which precautions are to be taken by the secretary while corresponding with depositors?
Answer: Following precautions should be undertaken while drafting letters to the depositors:
(i) Courtesy:
While writing letters to the depositors, polite replies are essential. Rude and harsh words should be strictly avoided.
(ii) Quick response:
Being the creditors of the company, due respect should be given to the depositors of the company. Immediate replies to be given to the queries and complaints of the depositors without any delay.
(iii) Accuracy:
Letters written to the depositors should be accurate and precise. True and correct information should be provided to them.
(iv) Conciseness:
The letters to the depositors must be concise i.e. short, brief, and to the point. Unnecessary and irrelevant information should be avoided.
(v) Your Attitude:
The letters to the depositors must be written after taking into consideration the requirements of the depositors.
(vi) Secrecy:
As a confidential officer, the secretary has to maintain secrecy regarding correspondence with the depositors. Any secret information regarding the company must not be disclosed through correspondence.
(vii) Image and Goodwill:
Correspondence plays a very important role in maintaining the goodwill of the company. While corresponding, the secretary should take all necessary steps so that the goodwill of the company will not get affected.
(viii) Legal Provision:
The secretary should see to it that all provisions relating to invitation, acceptance, renewal, and repayment of deposits are duly followed by the company while corresponding with depositors.
In simple words: The company secretary must ensure all correspondence with depositors is courteous, prompt, accurate, concise, respectful, confidential, enhances goodwill, and strictly adheres to legal provisions.

🎯 Exam Tip: This question tests a comprehensive understanding of professional secretarial conduct; remember all eight points for a complete answer.

Question 2. What are the circumstances under which the Secretary makes correspondence with depositors?
Answer:
• A company secretary has to conduct correspondence with depositors on different occasions.
• This correspondence is limited as they are creditors and not the owners of the company.
• Deposits are accepted for a short period.
• The relationship of depositors also comes to an end immediately after deposits are repaid.
Following are the circumstances under which correspondence is done with the depositors:
• Letter to express thanks to the depositor for showing faith in the company and depositing the amount
• Intimation about payment of interest
• Interest warrant
• Electronic payment of Interest
• Letter informing about the renewal of deposit
• Informing the depositor about the maturity of deposits.
In simple words: The secretary corresponds with depositors for various events like acknowledging new deposits, informing about interest payments (via warrant or electronic), and communicating about deposit renewal or maturity.

🎯 Exam Tip: List specific scenarios that necessitate communication with depositors to demonstrate a practical understanding of secretarial duties.

4. Justify The Following Statements.

Question 1. The Company Secretary should take certain precautions while corresponding with depositors.
Answer:
• The deposit represents the short-term borrowed capital of the company.
• Depositors are the creditors of the company.
• The company secretary should correspond properly with the depositors in order to ensure the continuous flow of investments.
• The reply to queries and complaints of depositors should be prompt and courteous.
• The letter should be written from the depositors' point of view and accurate information must be supplied to them.
• All the legal provisions must be followed and the goodwill of the company has to be maintained.
• Thus, it is rightly justified that the company secretary should take every precaution while corresponding with depositors.
In simple words: It is crucial for the company secretary to be cautious in correspondence with depositors because deposits are vital short-term capital, depositors are creditors, and maintaining their trust and adherence to legal norms ensures continued investment and company goodwill.

🎯 Exam Tip: When justifying, link secretarial actions to broader company objectives like financial stability, legal compliance, and stakeholder relations.

Question 2. There are certain circumstances when a secretary has to correspond with depositors.
Answer:
• Depositors are the creditors of the company and not the owners.
• Frequent correspondence with depositors is not required as they do not participate in the management of the company.
• The company secretary has to conduct correspondence with depositors regarding the 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.
• Thus, it is rightly justified that the secretary has to correspond with depositors on certain circumstances.
In simple words: The secretary's communication with depositors is necessary for specific events like accepting deposits, processing interest, renewing, or repaying them, acting under the Board's direction and with utmost care.

🎯 Exam Tip: Justify why correspondence is *necessary* in specific contexts, linking it to the company's obligations and the secretary's role.

5. Attempt The Following.

Question 1. Draft a letter of thanks to depositors of a company.
Answer:
RADHIKA INDUSTRIES LIMITED
501A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH2002 PLC 503433
Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/05/2018-19
Website: www.radhikalimited.com
Email: radhika4@gmail.com
Date: 15th May 2019
Mr. Deepak Ved
C/25, LIC Colony
L.J. Road, Mahim,
Mumbai - 400 096
Sub: Thanking Depositor For Fixed Deposit.
Dear Sir,
As per your application received for a fixed deposit of Rs. 1,00,000/- for a period of 1
In simple words: This letter acknowledges receipt of a fixed deposit from a depositor, expresses gratitude, and confirms the deposit details.

🎯 Exam Tip: When drafting letters, ensure all essential elements like company details, recipient's address, subject, salutation, reference to application, deposit amount, and period are accurately included for full marks.

Question 2.
Draft a letter to a depositor informing him about payment of interest through interest warrant.
Answer:
RADHIKA INDUSTRIES LIMITED
501A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH2002 PLC 503433

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/25/2019-20

Website: www.radhikalimited.com
Email: radhika4@gmail.com
Date: 18th April 2019

Mrs Ruchika Korgaonkar
A/23, BPT Colony,
N.K.Road, Mahim,
Mumbai:-400 096.

Sub: Payment of Interest on Fixed Deposits.

Dear Madam,
As per the board resolution passed in the Board Meeting held on 16th April 2019, this is to inform you that the interest @ 10% on your Fixed Deposit is due for payment.

Your company has complied with all the provisions relating to the payment of interest on deposits and the interest warrant drawn on ICICI Bank, Prabhadevi branch is enclosed herewith.

The details of your Fixed Deposit and interest payable on the deposit are given in the following schedule:

TDS certificate is enclosed for income tax purposes along with the interest warrant.
Thanking you,

Yours faithfully,
For Radhika Industries Limited,

Sign
Mr. Fazal Shahzman

Encl:
1. Interest Warrant No. 3325
2. TDS certificate
In simple words: This letter informs a depositor about their fixed deposit interest payment, detailing the amount and confirming that an interest warrant and TDS certificate are enclosed as per company policy.

🎯 Exam Tip: When drafting official letters, ensure all relevant details like company name, address, CIN, contact info, date, recipient details, subject, and enclosures are correctly formatted and included for full marks.

Question 3.
Write a letter to the depositor for the renewal of his deposit.
OR
Draft a letter to the depositor for renewal of his deposit.
Answer:
SUNRISE INDUSTRIES LIMITED
50/A, Swami Narayan Road, Tunga Village, Mumbai: 400 072
CIN: L42105 MH2005 PLC 402512

Tel. No.: 022-23731242
Fax No.: 022-23738656
Ref. No.: S/DEP/51/2019-20

Website: www.sunriselimited.com
Email: sunrise5@gmail.com
Date: 17th Feb 2019

Mr. Rajesh Joshi
20, Hilton Complex,
Laxmi Road,
Solapur - 413 018

Sub: Renewal on Fixed Deposits.

Dear Sir,
We, hereby, acknowledge receipt of your application for the renewal of a deposit of Rs. 50,000/- for a further period of one year. We have also received duly discharged deposit receipt No. 1242 and the same has been placed before the Board for consideration and approval.

As per the resolution passed at the Board meeting held on 15th Feb 2019, the Board has decided to renew the deposits for a further period of 1 year on the same terms and conditions.

A deposit receipt No 4424 is enclosed along with this letter.
Thanking you,

Yours faithfully,
For Sunrise Industries Ltd,

Sign
Miss Shalakha Suvarna
Company Secretary

Encl: Fixed Deposit receipt No 4424
In simple words: This letter confirms the receipt of a depositor's application for renewal and states that the company's board has approved the renewal of their fixed deposit for an additional year under the same terms. A new deposit receipt is enclosed.

🎯 Exam Tip: Emphasize the clear communication of terms and conditions for renewed deposits and the enclosure of the new receipt to ensure student understanding of the process.

Question 4.
Draft a letter to the depositor regarding redemption or repayment of his deposit.
Answer:
SWARG MARBLE LIMITED
40/B, C – Ramchandra Road, Khar (East), Mumbai: 400 053
CIN: L24308 MH2006 PLC 211388

Tel. No.: 022-4133242
Fax No.: 022-4215212
Ref. No.: S/DEP/15/19-20

Email: swarglimitedl2@gmail.com
Website: www.swarglimited.com
Date: 21st April 2019

Mr. Santosh Vichare
A/21, Swastik Colony,
Bhadkamkar Marg,
Fort, Mumbai:-400 020

Sub: Repayment of Fixed Deposits.

Dear Sir,
This is to inform you that your Fixed Deposit Receipt No. 3225 dated 1st May 2018 for Rs. 1,00,000/- will be due for repayment on 30th April 2019.

We have received original Deposit Receipt No. 3225 duly discharged along with instruction for repayment. The Board of Directors in the meeting held on 20th April 2019 has passed a resolution for the redemption of the deposits.

The details of repayment of deposit are as under:

Please find enclosed herewith a crossed cheque of Rs. 1,09,000, bearing No. 126224 dated 30th April 2019 drawn on Bank of India, Tardeo, Mumbai:- 400 034.
Thanking you,

Yours faithfully,
For Sward Industries Ltd,

Sign
Mr. Sandesh Virkar
Company Secretary

Encl: Crossed Cheque No. 126224
In simple words: This letter informs a depositor that their fixed deposit is due for repayment, confirms the receipt of the discharged deposit receipt, details the repayment amount including interest and TDS, and encloses a crossed cheque for the net amount.

🎯 Exam Tip: Clearly enumerate all financial figures and dates related to the deposit and repayment. The inclusion of a table for financial breakdown demonstrates clarity and professionalism.

Question 5.
Draft a letter to a depositor informing him about payment of interest through electronic mode.
Answer:
RADHIKA INDUSTRIES LIMITED
501 A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH2002 PLC 503433

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/25/2019-20

Email: radhika4@gmail.com
Website: www.radhikalimited.com
Date: 18th April 2019

Mrs Anushka Khanvilkar
A/21, Mahindra Tower,
Tardeo Road, Mumbai Central,
Mumbai - 400 034

Sub: Payment of Interest on Fixed Deposits through ECS or NEFT.

Dear Madam,
As per the board resolution passed in the Board Meeting held on 16th April 2019, this is to inform you that the interest @ 10% on your Fixed Deposit is due for payment.

Your company has complied with all the provisions relating to the payment of interest on the deposits.

The details of your Fixed Deposit and interest payable on the deposit are given in the following schedule:

Interest will be payable by electronic transfer (ECS/NEFT), i.e. by crediting said interest to your bank account as per details provided by you to the company.
Thanking you,

Yours faithfully,
For Radhika Industries Limited,

Sign
Mr. Deepak Ved
In simple words: This letter informs a depositor about their fixed deposit interest payment, specifying that it will be made via electronic transfer (ECS/NEFT) directly to their bank account, with a detailed breakdown of the interest and TDS deducted.

🎯 Exam Tip: Highlight the convenience of electronic payment methods and ensure the letter clearly states that the interest will be credited directly to the depositor's bank account, which is a key evaluation point.