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BCom Sem-III Commercial Communication (CC) Unit – 3 Secretarial Correspondence - Prof. Vipul Solanki
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[email protected] SEMESTER-III SECRETARIAL CORRESPONDENCE (Marks: 14) 1. NON-ALLOTMENT OF SHARES
Q-Draft a letter on behalf of an investor/shareholder to the Company Secretary of a Joint-stock company complaining about the non- allotment of shares. Prof. Haresh M. Patel A/32, Shreenath Duplex Nr. Parivar Cross Roads Vadodara - 06 July 02, 2012. The Secretary, GenNext Industries Ltd., 45/ Uma Chambers, Boriwali (East), Mumbai-22. Dear Sir, Sub: Non Allotment of Shares. I applied for 200 shares out of the recent Public Issue of your company. I had paid Rs. 44000/together with the application. I am surprised to learn that I have not been allotted any shares of your company. I have received today your intimation of a refund of the application money credited to my Bank Account. It is most surprising that your company has not allotted me a single share. I feel that your company should have allotted me at least one lot of shares. I have come to know that the Public Issue was not oversubscribed. Most of the investors have received the shares by firm allotment. My friends and colleagues have been favoured by your company. It seems that you have neglected only my application. It seems that the company has completed the process of allotment of shares. Most of the investors received allotment letters last week. But, no shares have been allotted to me. It is a matter of regret for me that eventhough I am a shareholder of your company, I have not been allotted any new shares of the company. This non allotment of shares has disappointed me. Please check whether there is any error on your part. I hope to receive an early reply from you. Yours faithfully,
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[email protected] 2. REPLY TO NON-ALLOTMENT OF SHARES
Q-As a Company Secretary of a Joint-stock company, write a reply to the shareholder (investor) in response to his letter asking as to why he has not been allotted any share in the recent public issue. GENNEXT INDUSTRIES LTD 45/ Uma Chambers Boriwali (East) Mumbai-22 July 18, 2012. Prof. Haresh. M. Patel, 32/Shreenath Duplex, Nr.Parivar Cross Roads, Vadodara-6. Dear Sir, Sub: Non -Allotment of Shares. We have received your letter, complaining about the non-allotment of shares. We are very sorry to know that you could not get any of the equity shares issued by our company. We appreciate your interest in the investment in the shares of our company. However, we would like to add that the scheme of allotment is fair and just. The scheme of allotment was prepared as per the rules and regulations of the Securities and Exchange Board of India. Computer services were used in carrying out the scheme. And the computerized systems leave no room for any error. Please be sure that there is no mismanagement about your application form. We would like to further inform you that the Public Issue was over-subscribed by five times. So it was not possible for us to allot shares to every applicant. In the case of those who applied for 300 shares, every two applicants out of three have been allotted the shares. The details of the scheme of allotment have been given in the Times of India of July 12, 2012. You are requested to refer it. We also suggest that you may buy our shares when they are listed at the stock market. Or, you can apply in the next public issue coming shortly. We hope that our quick feedback will satisfy you. With warm wishes. Yours faithfully,
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3. NON-CREDIT OF REFUND OF THE APPLICATION MONEY Q- Write a letter to the Secretary of a Joint-Stock Company, complaining about the non-credit of refund of the application money. Mr. Arnav V. Solanki A-59, Suryan Hope Town B/H Satyamev Hospital Chandkheda Ahmedabad September 16, 2012. The Secretary, Tata Soaps Limited, 1250, Shivaji Road, Boriwali-West Mumbai. Dear Sir, Sub: Non-credit of refund of the application money. I had applied for 400 equity shares in response to your recent Public Issue. In this regard, I have already received the Allotment Letter for 200 shares. I would like to draw your attention that at the rate of Rs. 20/- each shares, I had paid Rs. 8000/for 400 shares along with the application. But I have been allotted only 200 shares. The amount payable on 200 shares should be Rs. 4000/-. And hence, your company should have credited Rs. 4000/- into my Bank Account through ECS. But, I regret to point out that so far the amount of the refund is not credited into my Bank Account. Also, you have not sent any written intimation regarding the credit of refund of the application money paid to you. I request you to look into the matter and arrange to credit the amount of refund into my Bank Account with an early date. I enclose a copy of the bank receipt of my money. Your quick feedback is expected. I shall appreciate your prompt action. Yours faithfully,
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4. REPLY TO NON-CREDIT OF REFUND OF THE APPLICATION MONEY Q- As from the Secretary of the Company, write a suitable reply to a shareholder who has complained about the non-credit of refund of the application money. TATA SOAPS LIMITED 1250, Shivaji Road Boriwali-West Mumbai September 16, 2012.
Mr. Arnav V. Solanki, A-59, Suryan Hope Town, B/H Satyamev Hospital, Chandkheda, Ahmedabad. Dear Sir, Sub: Non-credit of refund of the application money.
We have received your letter dated 12th August, 2012, regarding the non-credit of refund of the application money. We are extremely sorry for that. On receiving your letter we inquired into the matter and came to know that because of some technical problems the refund of the application money could not be credited back into your bank account in time. But now, the company has credited the refund of Rs. 4000/- back into your Bank Account through ECS. And the company has also sent you the written intimation regarding the credit of refund of the application money paid to you. We appreciate your interest in the investment in shares of our company. We regret for the inconvenience caused to you. We hope our quick feedback has satisfied you. Our best services await your call. With warm wishes.
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Yours faithfully, 5
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[email protected] 5. NON-CREDIT OF DIVIDEND
Q- As from a shareholder write a letter to the Secretary of a Joint-Stock Company, complaining about the non-credit of dividend. Mr. Aarav J. Trivedi A-54, Aakash Apartment B/H Jalaram Hospital Baroda October 22, 2012. The Secretary, Suzlon Energy Limited, 15, Suzlon House, Near Krishna Complex, Navranpura, Ahmedabad. Dear Sir, Sub: Non-credit of dividend I am a shareholder of your company. I hold 400 equity shares of your company under Folio No789789789 for the last three years. I have come to know that the company has already declared the dividend for the current financial year. In continuation of the progressive dividend policy of your company, the Board of Directors has recommended an equity dividend of 15% to the shareholders.
A considerable time has passed, yet the company has not credited any amount of dividend into my Bank Account till date. Please check whether there is any error on your part. I herewith enclose the photocopy of my Client Master and latest De-mat statement.
I request you to look into the matter and arrange to credit the amount of dividend into my Bank Account at the earliest. Your quick feedback is expected. I shall appreciate your prompt action. Yours faithfully,
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[email protected] 6. REPLY TO NON-CREDIT OF DIVIDEND
Q- As from the Secretary of the Company, write a suitable reply to a shareholder who has informed you about the non-credit of dividend. SUZLON ENERGY LIMITED 15, Suzlon House Near Krishna Complex Navranpura Ahmedabad October 30, 2012. Mr. Aarav J. Trivedi, A-54, Aakash Apartment, B/H Jalaram Hospital, Baroda, Dear Sir, Sub: Non-credit of dividend. We have received your letter dated 12th September, 2012, regarding the non-credit of dividend. We are extremely sorry for that.
On receiving your letter we inquired into the matter and came to know that because of some technical problems the amount of dividend could not be credited into some shareholders’ bank account in time. But now, the company has credited the dividend of Rs. 2000/- into your Bank Account through ECS. And the company has also sent you the written intimation regarding the credit of dividend paid to you.
We appreciate your interest in the investment in shares of our company. We regret for the inconvenience caused to you. We hope our quick feedback has satisfied you. We hope to serve you at our best.
With warm wishes. Yours faithfully,
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7. NON-RECEIPT OF ANNUAL REPORT OF THE COMPANY Q- Draft a letter on behalf of a shareholder to the Company Secretary of a Joint-stock company complaining about the non-receipt of annual report of the company. Dr. Jayesh R. Rathod 45, Jay Tenement Nr. Satellite Police Station Ahmedabad November 12, 2012.
The Secretary, Birla Cement Limited, 25, Registered Office, Marine Drive, Mumbai - 400 002. Dear Sir, Sub: Non-Receipt of Annual Report of the Company. I am a shareholder of your company. I hold 500 equity shares of your company under Folio No789789789 for the last seven years. I regret to inform you that I have not received the copy of the Annual Report of the Company published by the company. My friends who own shares in your company have already received the Annual Report from the company. As an active shareholder, I wish to analyze the working of the company. For a shareholder, the annual report is the only financial document that he gets from the company. The annual report can give us a lot of important information about a company. So, I need the annual report of the company for comparative study. Studying the company's annual report provides us with an opportunity to assess the company's overall financial situation and compare it with previous years. I, therefore, request you to send me the copy of the Annual Report of the Company at your earliest. Thanking you.
Yours faithfully,
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8. REPLY TO NON-RECEIPT OF ANNUAL REPORT OF THE COMPANY Q-As a Company Secretary of a Joint-stock company, write a reply to the shareholder who has complained about the non-receipt of annual report of the company. BIRLA CEMENT LIMITED 25, Registered Office Marine Drive Mumbai-400 002 November 12, 2012
Dr. Jayesh R. Rathod, 45, Jay Tenement, Nr. Satellite Police Station, Ahmedabad. Dear Sir, Sub: Non-Receipt of Annual Report of the Company. We have received your letter dated 12th September, 2012, regarding the non-receipt of Annual Report of the company. We are extremely sorry for that. It is true that the Annual Report is the only document the company is obliged to send to its shareholders. On receiving your letter we examined our records. As per our records Annual Report of the company was sent to you via speed post on 15th April, 2012. It seems that the Annual Report sent by us must have been lost in transit. We are pleased to inform you that the Annual Report of the company is available on our Website at www.birlacement.com. As we do not have the hard copy of the annual report now, we request you to access a soft copy of the annual report on our website. You can also download it from the Website. We appreciate your interest in the investment in shares of our company and seek you continual support from you in future. We regret for the inconvenience caused to you. We hope our quick feedback has satisfied you. We hope to serve you at our best. Please feel free to write to us if you have any further questions. With warm wishes. Yours faithfully,
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9. SHAREHOLDER’S CONCERN ABOUT DECLINING PROFITS OF THE COMPANY Q- As from a shareholder write a suitable letter to the Secretary of the company, expressing your concern (anxiety) about declining profits of the company. Mr. Vanraj C. Chavda B-12, Eklavya Society Nr. Axis Bank Maninagar Ahmedabad June 02, 2012.
The Secretary, Bharat Chemicals Limited, 12, Registered Office, Royal Street, Worli – East, Mumbai. Dear Sir, Sub: Declining profits of the company. I have been a shareholder of your company for the last ten years. At present I hold one thousand equity shares of the company. I am writing this letter to express my anxiety about gradual decline in the profits made by the company during the last two years. The Q3 result of the current financial year also shows a dramatic decline in the profits. The rate of dividend has gone down sharply for five years. This has surprised me. It is also a matter of serious concern that the company has been skipping the payment of the dividend for the last two years. We, the shareholders, are worried about the continuous decline in the profits and share prices of the company. There was never cause for concern during the earlier years. I am worried about financial status of the company. Please let us know the present financial status and prospects of the company. I shall appreciate a line in reply. Yours faithfully,
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10. REPLY TO SHAREHOLDER’S CONCERN ABOUT DECLINING PROFITS OF THE COMPANY Q- On behalf of a Secretary of the company draft reply to a shareholder who has written a letter showing anxiety(concern) about the sharp decline in the profits of the company. BHARAT CHEMICALS LIMITED 12, Registered Office Royal Street Worli – East Mumbai July 02, 2012. Mr. Vanraj C. Chavda, B-12, Eklavya Society, Nr. Axis Bank, Maninagar, Ahmedabad. Dear Sir, Sub: Declining profits of the company. We have received your letter dated 2nd June, 2012, expressing your anxiety over the decline in the profits of the company. We would like to inform you that the global up set in the business and the fall of the Sensex has caused this slump. Moreover, because of recessionary conditions, there was less demand for our products in the market for the last two years. As a result, as you pointed out, the profits have gone down marginally. But there is no need to worry about it because we have taken steps to improve the situation. Further, the company has been doing good business for the last six months of the current year. It seems that the profit is likely to go high by the end of this financial year. Thus, I am pleased to inform you that there exits bright prospects of the company during the upcoming year. We thank for your concern about the company’s growth. Your anxiety is valid. Please have no worries about the company’s financial status. It is very sound. The balance sheets prove it. We hope our quick feedback has satisfied you. We hope to serve you at our best. Please feel free to write to us if you have any further questions. With warm wishes. Yours faithfully,
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SUZLON ENERGY LIMITED 15, Suzlon House, Near Krishna Complex, Navranpura, Ahmedabad.
Mr. R.K. Gupta D-36, Aakash Apartment Near Aavkar Hall Ghodasar Ahmedabad September 9, 2012 To, The Secretary, Bharat Chemicals Limited, 12, Registered Office, Royal Street, Worli – East, Mumbai. Dear Sir, Sub:_____________________________________________
(Content of Letter) Yours faithfully, RKGupta (R. K. Gupta)
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Additional Questions: 1. Draft a letter of behalf of a shareholder who wants to express his anxiety/concern about the dramatic decline in the profits of the company and the decrease in the dividend. 2. Write a shareholder’s letter to secretary expressing the anxiety/concern over declining profits of the company and the future prospects of the company. 3. One of the shareholders of a joint stock company has written to the Secretary expressing his concern (anxiety) about the decline in the profits of the company. As from the Secretary of a company write a suitable reply. Q. On behalf of a shareholder, draft a letter to the secretary of a company complaining about the noncredit of refund of the application money. Q. Mr.H. M Patel has not been allotted any shares. Yet, he has not received his refund order. Write a letter to the company making an inquiry for and demanding an explanation for the same. Q-Mr. A J Gandhi is a share holder of Tata Tisco Pvt.Ltd., Mumbai. He has written a letter complaining about the non receipt of interest warrant. Draft a suitable reply on behalf of the company. Q-As a Secretary of a Public Limited company, write a letter to a share holder in response to his letter asking for an explanation regarding the excessive delay in issuing the interest warrant. You know how important place a Company Secretary holds in a company. He is the mouth piece of the company. The investors and the share holders will contact him to make inquiries and seek his cooperation on various issues. On behalf of the company the Secretary communicates with all the parties concerned and projects the company’s image in the market. Therefore, his place becomes very important in the company. He needs to be precise, tactful, polite and firm in his communication. • • • • •
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To raise capital for establishing or expanding business enterprises, Public Limited Companies invite people to subscribe to the share capital by issuing public notices in the newspapers. The public notice includes details about the prospects of growth, the face value of shares, the pro forma for the application for the shares, the last date of application etc. The interested parties send their applications along with the cheques. The share allotment procedure is carried out by the board of directors according to the SEBI rules. If the issue is over subscribed, the allotment may be made by : (a) Drawing lots (lucky draw system) (b) Fixing a specific proportion to the number of shares applied. Allotment advice: The applicants who have been allotted shares get allotment advice from the secretary. The share certificate is also issued along with the advice. Letter of regret for the non allotment of shares is issued along with the refund order to those who have not been allotted shares. The share certificate contains the seal of the company, name of the company, serial number of the certificate, name and address of the share holder, number and class of shares, the face value, amount paid on each share and the date of issue. In case the original share certificate is lost/mutilated/stolen/torn/defaced or misplaced- a duplicate share certificate may be issued but the share holder has to make an application for the same along with the statement of facts, indemnity letter to protect the company’s interests against any claims, advertisement expenses, public notices or other expenses occurred due to the loss of the original certificate and the issue of the fresh one.
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Following letters are to be studied in this section: 1. Non-allotment of shares 2. Reply to non-allotment of shares 3. Non-credit of refund of the application money 4. Reply to non-credit of refund of the application money 5. Non-credit of dividend 6. Reply to Non-credit of dividend 7. Non-receipt of annual report of the company 8. Reply to Non-receipt of annual report of the company 9. Shareholder’s concern about declining profits of the company 10. Reply to Shareholder’s concern about declining profits of the company
The process of studying an annual report provides us with an opportunity to take a step back and look at the overall practical and financial health of company’s business. This enables us to see whether the net worth of the company has improved or declined during the year. in question, as well as how your assets are currently distributed. When you compile this information into a clear and concise format, you allow yourself to see whether you have sufficient liquid assets to cover anticipated circumstances.
An annual report is a record of a company's financial performance and operations for the current financial year. Publicly traded companies produce annual reports to tell shareholders, prospective investors, customers and others what happened. An annual report is the most critical and exhaustive communication from companies to their investors.
You can view a company’s annual report at its Web site. Any major search engine can help you find it. Downloading or printing the annual report should be easy. Sure, one would have tracked news about the company on television or newspaper. Or read experts' take on the quarterly results of the company. However, (We are very sorry for the non-allotment of shares to you.) Please check if there is any error on your part. I enclose a copy of the bank receipt of my money. Your quick feedback is expected. I shall appreciate your prompt action.
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