Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
📘 Correspondence with Depositors – Notes
📌 1. Meaning of Deposit
• Deposits are a short-term source of finance for companies.
• Used to meet the short-term working capital needs.
⏳ 2. Time Period of Deposits
• Company cannot accept deposits:
o For less than 6 months
o For more than 36 months
💰 3. Interest and Repayment
• Company must pay:
o Regular interest at a fixed rate.
o Principal amount at the time of maturity.
👨💼 4. Role of Company Secretary
• Corresponds with depositors about:
o Acceptance of deposits
o Payment of interest
o Renewal of deposits
o Repayment on maturity
• Follows Board of Directors’ instructions
• Must be cautious and careful
📎 8.1 Precautions While Corresponding with Depositors
1. Legal Provisions
o Follow all legal rules for accepting, renewing, and repaying deposits.
2. Courtesy
o Letters must be polite.
o Never use rude or harsh words.
3. Prompt Response
o Reply to queries and complaints quickly, with no delay.
4. Accuracy
1
Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
o
Share only correct and clear information.
5. Image and Goodwill
o Maintain a positive image of the company in letters.
6. You Attitude
o Focus on depositors’ needs.
o Write from the depositor’s point of view.
7. Conciseness
o Letters should be short and to the point.
o Avoid extra or irrelevant details.
8. Maximum Secrecy
o Keep all communication confidential.
📬 8.2 Situations Where Secretary Writes to Depositors
1. Thank You Letter
o For depositing money and showing trust in the company.
2. Interest Payment Info
o Informing about how interest is paid:
a) Interest Warrant
b) Electronic Payment
3. Renewal Letter
o To inform about renewing a deposit after maturity.
4. Repayment Letter
o Informing depositor about repayment of the deposit on maturity.
🎯 QUICK RECAP – FLASH POINTS
🔑 Point 📌 Detail
Time Limit 6 to 36 months only
Secretary’s Job Writes letters, follows Board’s instructions
Must Maintain Secrecy, goodwill, politeness
Letter Style Clear, short, correct, customer-focused
Common Letters Thanks, Interest Payment, Renewal, Repayment
📝 FOR EXAMS – EXPECTED QUESTION TYPES
1. MCQs:
• Company can accept deposits for:
a) 3 to 36 months
b) 6 to 36 months ✅
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Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
c) 12 to 48 months
d) No time limit
2. True or False:
• Deposits can be accepted for more than 36 months. ❌
• Secretary should write rude letters. ❌
• Secretary must maintain secrecy. ✅
3. One-sentence:
• What is the minimum period for accepting deposits?
👉 6 months
• What does “You Attitude” mean in letters?
👉 Writing from the depositor’s point of view.
✉️ 1. Letter Thanking Depositor
GURU INDUSTRIES LTD.
Registered Office: 45, Guru Towers, J.M. Road, Pune – 411 021
CIN: L30121 MH 2007 PLC070504
Phone: 020-12110072 | Fax: 020-30040077
Website: www.gurulimited.com | Email:
[email protected]Ref. No.: G/DEP/09/19-20
Date: 10th April, 2019
To,
Mr. Sharangdhar Naik
78/68, Guru Apartment, Shaniwar Peth, Pune – 411 011
Subject: 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 for a period of 2 years. We thank you for the initiative and the trust shown in
our company.
The details of your deposit are as follows:
Receipt No. Amount Period Interest Rate Bank Account No.
678 ₹1,00,000 2 years 12.5% City Bank 222040
The Board of Directors expresses gratitude for your support. We assure you of our best
services.
3
Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
Thanking you,
Yours faithfully,
For Guru Industries Ltd.
Sign
Mr. Nitin Modi
General Manager and Company Secretary
Encl: Fixed Deposit Receipt No. 678
✉️ 2. Letter Informing about Interest Payment via Interest Warrant
KISHOR TEXTILE LTD.
Registered Office: 104/B, Bombay House, S.V. Road, Borivali (W), Mumbai – 400 103
CIN: L05065 MH 2000 PLC430644
Phone: 022-60304636 | Fax: 022-40202323
Website: www.kishorstextilelimited.com | Email:
[email protected]Ref. No.: K/DEP/34/19-20
Date: 28th July, 2019
To,
Mrs. Lata Dixit
C-702, Madhuban Apt., Shivaji Nagar, Camp, Pune – 411 001
Subject: Payment of Interest on Fixed Deposit
Dear Madam,
I am instructed by the Board to inform you that interest @10% on your deposit has become
due. Please find enclosed Interest Warrant No. 3345 dated 25th July, 2019, drawn on Axis
Bank, Borivali Branch for ₹2,500.
Warrant No. FDR No. Deposit Rate Gross Interest TDS Net Interest
3345 2032 ₹25,000 10% ₹2,500 NIL ₹2,500
Please detach the Interest Warrant along the perforated line.
Thanking you,
Yours faithfully,
For Kishor Textile Ltd.
Sign
Mr. Nikhil Dixit
Company Secretary
Encl: Interest Warrant
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Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
✉️ 3. Letter for Renewal of Deposit
DIAMOND INTERNATIONAL LTD.
Registered Office: 24, Dimond House, Nariman Point, Mumbai – 400 021
CIN: L15522 MH 2000 PLC301244
Phone: 022-50202113 | Fax: 022-20304112
Website: www.dimondlimited.com | Email:
[email protected]Ref. No.: D/DEP/61/19-20
Date: 22nd March, 2019
To,
Miss. Ashi Singh
26, Gulmohar Apartment, Andheri (W), Mumbai – 400 058
Subject: Renewal of Fixed Deposit
Dear Madam,
We acknowledge receipt of your application for renewal of deposit of ₹1,00,000 for 2 more
years. We also received your original FDR No. 4625, which was placed before the Board.
The Board approved the renewal at the meeting held on 17th March, 2019, on the same terms
and conditions. Enclosed is the new Deposit Receipt No. 5925.
Thanking you,
Yours faithfully,
For Diamond International Ltd.
Sign
Miss Kavya Ambani
Company Secretary
Encl: Fixed Deposit Receipt No. 5925
✉️ 4. Letter for Repayment of Deposit
VISHAL ENTERPRISES LTD.
Registered Office: 50, Corporate Plaza, M.G. Road, Pune – 411 001
CIN: L30999 MH 2010 PLC543210
Phone: 020-99887766 | Fax: 020-33445566
Website: www.vishalltd.com | Email:
[email protected]Ref. No.: V/DEP/77/19-20
Date: 5th April, 2019
To,
Mr. Rajesh Iyer
14/502, Orchid Residency, Thane (W), Mumbai – 400 607
5
Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
Subject: Repayment of Fixed Deposit on Maturity
Dear Sir,
Your Fixed Deposit of ₹50,000 with Receipt No. 1050 has matured on 31st March, 2019.
We are enclosing a cheque No. 998877 dated 5th April, 2019, drawn on HDFC Bank for
₹50,000 towards repayment of your deposit.
We thank you for your trust in our company and assure you of our best services.
Thanking you,
Yours faithfully,
For Vishal Enterprises Ltd.
Sign
Mr. Rohan Bhave
Company Secretary
Encl: Cheque No. 998877
✉️ 5. Letter for Interest Payment via ECS/NEFT
NOVEL SEWING MACHINES LTD.
Registered Office: Survey No. 78, Plot No. 48, Novel Sadan, D.P. Road, Bavdhan, Pune –
411 038
CIN: L302090 MH 2000 PLC070504
Phone: 022-60603021 | Fax: 020-96864636
Website: www.novelsewingltd.com | Email:
[email protected]Ref. No.: N/DEP/10/19-20
Date: 5th April, 2019
To,
Miss. Kshitija Bihani
125, Laxmi Road, Narayan Peth, Pune – 411 030
Subject: Payment of Interest on Fixed Deposit via ECS/NEFT
Dear Madam,
As per the resolution passed on 12th March, 2019, interest @10% for the year ending 31st
March, 2019 on your deposit has become due.
FDR No. Deposit Rate Gross Interest TDS Net Interest
2032 ₹25,000 10% ₹2,500 NIL ₹2,500
Interest will be paid through ECS/NEFT to your bank account as per details provided.
6
Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
Thanking you,
Yours faithfully,
For Novel Sewing Machines Ltd.
Sign
Miss Sarita Singh
Company Secretary
✅ Q.1 A) Select the correct answer and rewrite the statements
1. Depositors are creditors of a company.
2. Depositors provide short-term capital to the company.
3. A company cannot accept deposit for more than 36 months.
4. A company cannot accept deposit for less than 6 months.
5. Deposits are short-term loans of the company.
6. Public Deposits are accepted to meet the requirement of working capital.
7. Board of Directors has the power to invite deposits from public.
8. Rate of interest on deposits is fixed.
9. The return or income for the investment of money on deposits is called interest.
✅ Q.1 B) Match the Pairs
Group A Group B
a) Depositors 4) Creditors
b) Rate of Interest 1) Fixed
c) Deposit Receipt 5) Evidence of deposit
✅ Q.1 C) Write the word/term/phrase
1. Interest
2. Interest Warrant
3. Deposit Receipt
4. Repayment of deposit
5. 36 months
✅ Q.1 D) State True or False
1. True
2. True
3. False – Company must issue statutory advertisement.
4. False – Only shareholders receive dividends.
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Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
5. True
6. False – Depositors do not get voting rights.
✅ Q.1 E) Find the Odd One Out
1. Dividend – others relate to depositors
2. Depository – others are documents related to deposits
✅ Q.1 F) Complete the sentences
1. Depositors are the creditors of the company.
2. The Company Secretary must be cautious and careful while writing letters to the
depositors.
3. Deposit is a short-term source of finance of the company.
4. A company can accept deposits for the minimum period of 6 months.
5. Depositors are entitled to receive interest at fixed rate.
✅ Q.1 G) Select correct options from bracket
Group A Group B
a) Depositor Creditor of the company
b) Return on Deposits Interest
c) Maximum Period of Deposit 36 months
d) Minimum Period of Deposit 6 months
✅ Q.1 H) Answer in One Sentence
1. Who is a depositor?
➤ A person who deposits money in a company for a fixed period is called a
depositor.
2. What is the return on deposit?
➤ Interest is the return on money invested in a deposit.
3. What is Interest Warrant?
➤ It is an instrument issued by the company to pay interest to depositors.
4. What is renewal of deposit?
➤ Renewal means continuing the deposit for an additional period after the original
maturity.
5. Which document is enclosed with the renewal letter?
➤ A new Fixed Deposit Receipt is enclosed.
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Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
6. When will the company return the deposit?
➤ On the date of maturity.
7. What is the minimum and maximum period of deposit?
➤ Minimum: 6 months, Maximum: 36 months
✅ Q.1 I) Correct the underlined words
1. Depositors are creditors of the company.
2. Deposits are the external source of financing.
3. Deposit is a short-term source of capital.
4. Depositors are entitled to receive interest.
✅ Q.1 J) Arrange in Proper Order
1. a) Acceptance of Deposits
b) Deposit Receipt
c) Renewal of Deposit
2. a) Acceptance of Deposits
b) Deposit Receipt
c) Payment of Interest
✅ Q.2 Explain the Following Terms/Concepts
1. Depositor – A person who lends money to a company for a fixed term and earns
interest.
2. Deposit – A short-term borrowing by a company from individuals to meet working
capital needs.
3. Interest on Deposit – The fixed return paid to depositors for lending money to the
company.
4. Deposit Receipt – A document issued by a company acknowledging receipt of
deposit.
5. Renewal of Deposit – Extending the period of deposit after maturity for another term.
6. Repayment of Deposit – Returning the principal amount to the depositor at maturity.
✅ Q.3 Answer in Brief
1. What precautions are to be taken by the Secretary while corresponding
with depositors?
• Follow legal provisions
• Use courteous language
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Ruturraj Jadhav sir’s
SARASWATI CLASSES for ICSE +91 9588658176
• Give prompt responses
• Ensure accuracy
• Maintain company’s image
• Adopt “You” attitude
• Keep letters concise
• Maintain secrecy
2. Circumstances when Secretary corresponds with depositors:
• Sending thank you letters for deposits
• Informing about interest payment
• Informing about renewal
• Informing about repayment of deposit
✅ Q.4 Justify the Statements
1. The Company Secretary should take certain precautions while
corresponding with depositors.
• To maintain company’s image and goodwill
• To ensure legal compliance
• To provide accurate and polite communication
• To protect confidential information
2. There are certain circumstances when a secretary has to correspond with
depositors.
• At the time of acceptance, interest payment, renewal, or repayment
• To acknowledge trust and provide clarity
• As per Board decisions
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