Class 12 SP Letter of Allotment of Debentures: Format & Solved Specimen (Chapter 7)
Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Allotment of Debentures designed for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 7 (Correspondence with Debenture Holders), drafting a formal allotment letter to an applicant following a public issue of debentures is one of the most frequently asked questions in Question 7 (Letter Writing), carrying a direct weightage of 5 marks. Below, you will find the official board exam scenario, step-wise marking breakdown, statutory legal provisions under the Companies Act, 2013, and a textbook-accurate solved model answer.
Statutory Rule (Section 71 & Section 56(4), Companies Act 2013): Debenture holders are loan creditors of the company providing borrowed capital; therefore, they do not possess any voting rights in company general meetings. Under Section 56(4), every company must deliver the official Debenture Certificate within 6 months from the date of allotment.
HSC Board Examination Question Scenario
In the HSC examination, this question is typically framed as follows:
"Draft a letter of allotment to a debenture holder informing him / her regarding the allotment of 10% Non-Convertible Secured Debentures, citing the resolution passed at the Board Meeting."
Official HSC Step-Wise Marking Breakdown (5 Marks)
Examiners evaluate secretarial correspondence based on structural layout and accurate statutory schedules:
| Component | Required Exam Content | Marks |
|---|---|---|
| Letterhead & Layout | Company Name, Registered Address, 21-digit CIN, Phone, Email, Website, Ref. No., and Date. | 1 Mark |
| Inside Address & Subject | Applicant Name, Address, concise Subject Line, and formal Salutation. | 1 Mark |
| Body of the Letter | Reference to application date, Board resolution, allotment schedule table, and interest payment terms. | 2 Marks |
| Sign-off & Enclosure | Complimentary close ("Yours faithfully"), Secretary signature block, and mandatory Enclosure ("Encl: Debenture Certificate"). | 1 Mark |
| Total Marks | Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total) | 5 Marks |
Solved Model Answer: Letter of Allotment of Debentures
APEX STEEL INFRA LIMITED
Registered Office: 21, Nariman Point, Mumbai - 400021.
CIN: L27100MH2008PLC998877
Phone: 022 - 6655 4433
Email: debentures@apexsteel.com
Website: www.apexsteel.com
Ref. No.: ASIL/DEB/A-11/2026-27
Date: 15th November 2026
To,
Mr. Anil M. Deshmukh,
Plot No. 18, Sadashiv Peth,
Pune - 411030.
Subject: Allotment of Non-Convertible Debentures (NCDs).
Dear Sir,
In response to your Application No. D-8854 dated 20th October 2026, I am directed by the Board of Directors to inform you that at the Board Meeting held on 12th November 2026, you have been allotted 100, 10% Secured Non-Convertible Debentures of ₹ 100/- each, fully paid-up.
The tenure of the said debentures is 5 years from the date of allotment. The details of the debentures allotted to you are set out in the schedule below:
| Folio No. | No. of Debentures Applied | No. of Debentures Allotted | Distinctive Numbers (From - To) | Total Amount Received (₹) |
|---|---|---|---|---|
| D-1025 | 100 | 100 | 15001 - 15100 | 10,000/- |
The Debenture Certificate No. 450 is enclosed herewith. Please note that interest at the rate of 10% per annum will be paid half-yearly on 30th June and 31st December every year, as per the terms and conditions outlined in the Debenture Trust Deed.
Thanking you.
Yours faithfully,
For Apex Steel Infra Limited
(Signature)
Mr. Rajesh Mehta
Company Secretary
Encl: Debenture Certificate No. 450
Examiner's Secret: 3 Critical Points for Scoring Full Marks
- Mandatory Enclosure Line: Always write
Encl: Debenture Certificate No. ...at the bottom-left margin. Forgetting this line leads to an automatic 0.5 to 1 mark deduction.- Distinctive Numbers Precision: Ensure that the difference between the 'From' and 'To' distinctive numbers exactly matches the number of debentures allotted (e.g., 15001 to 15100 = 100 debentures).
- Creditor Terminology: Never refer to debenture holders as 'owners' or mention 'voting rights'. Debentures represent borrowed capital, and debenture holders are legal creditors entitled to fixed interest.
Frequently Asked Questions (HSC Board Exam FAQs)
1. Within how many months must a company issue a Debenture Certificate?
Under Section 56(4) of the Companies Act, 2013, a company must deliver the Debenture Certificate within 6 months from the date of allotment of debentures.
2. Can debenture holders vote at the company's Annual General Meeting?
No. Under Section 71(2) of the Companies Act, no company can issue any debentures carrying voting rights. Debenture holders are creditors, not owners of the company.
3. What is the role of a Debenture Trustee in an allotment of debentures?
A Debenture Trustee is appointed to protect the interests of debenture holders, hold charges on company assets, and ensure that the company complies with all conditions laid down in the Debenture Trust Deed.