Question

Attempt the following:

Write a letter to a debenture holder informing him about the conversion of debentures into equity shares.

Answer 1

Balaji Industries Limited
Registered Office: 9, Balajisadan, Sambhaji Chowk,
Kolhapur - 416012
CIN: U27106MH1965PLC013212

Phone No: xxxxxxxxx                                        Website: www.balajiindustriesltd.com
Fax No.: xxxxx                                                   E-mail: krishna30@gmailcom
Reference No: G/HD/30/18-19                          Date: 15th June, 20xx

Mr. Ramesh
Malvani, 22, Krishna Complex,
Vishnu Rood,
Buldhana-413 018.

                                       Sub: Conversion of Debentures into Equity Shares

Dear Sir,

I am directed to inform you that in accordance with the terms decided at the time of issue of 1,00,000, 10% fully convertible debentures, the debentures are due for conversion.

In accordance with the above, a Special Resolution was passed by the shareholders in the Extra-Ordinary General Meeting held on 20th June, 20xx for approval of the conversion of debentures into equity shares in the ratio of 2:1. As per your Letter of Option you have been allotted 50 Equity shares in lieu of 100 Debentures.

Details of your holding after conversion are as follows:

1	2	3	4		5
Folio No.	No. of Debentures held	No. of Equity Shares Issued	Distinctive Numbers		Share Certificate No.
			From	To
576	100	50	601	660	1120

The duly signed and executed share certificate is enclosed herewith. Debenture Certificate will be null and void w.e.f 20th June, 20xx.
Thanking You.

                                                                                   Yours Faithfully,
                                                                                 Balaji Industries Limited.
Encl: Share certificate                                              Sign.
                                                                                 (Mr. Naresh Goswami)
                                                                                  Company Secretary