Showing posts with label Chapter 6 Correspondence with Members. Show all posts

Class 12 SP Letter for Transmission of Shares: Format & Solved Draft (Chapter 6)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Transmission of Shares tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a formal letter to a legal representative (heir) informing them about the successful transmission of shares upon the death of a member is a highly conceptual question 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 provisions under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Companies Act 2013 - Operation of Law): "Transmission" of shares occurs involuntarily due to the operation of law (death, insolvency, or insanity of a member). Unlike a voluntary share transfer, transmission does not require an Instrument of Transfer (Form SH-4), nor does it attract any Stamp Duty. The legal representative must submit valid legal proofs, such as a Death Certificate and a Succession Certificate / Probate of Will.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a letter to the legal representative of a deceased shareholder informing him / her regarding the approval of transmission of shares and enclosing the endorsed share certificate."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural completeness and accurate legal terminology:

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	Legal Representative's Name, Address, concise Subject Line, and formal Salutation.	1 Mark
Body of the Letter	Acknowledgment of Death & Succession Certificates, Board resolution date, transmission schedule table, and waiver of stamp duty.	2 Marks
Sign-off & Enclosures	Complimentary close ("Yours faithfully"), Secretary signature block, and Enclosure (Endorsed Share Certificate).	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Letter Regarding Transmission of Shares

RELIANT MOTORS LIMITED
Registered Office: 88, Auto Park, Chakan, Pune - 410501.
CIN: L29100PN2010PLC123456
Phone: 020 - 2567 1122
Email: investors@reliantmotors.com
Website: www.reliantmotors.com

Ref. No.: RML/TRANS/2026-27/88

Date: 28th November 2026

To,
Mr. Rohit J. Deshmukh,
Flat No. 12, Swastik Apartments, J.M. Road,
Shivaji Nagar, Pune - 411005.

Subject: Transmission of Equity Shares.

Dear Sir,

We deeply regret to hear about the sad demise of your father, late Mr. Jayant S. Deshmukh, who was a valued shareholder of our company.

This is to acknowledge the receipt of your letter dated 10th November 2026, along with the original Share Certificate No. 4152, the official Death Certificate, and the attested copy of the Succession Certificate requesting the transmission of shares in your name.

I am pleased to inform you that the documents submitted by you were found to be legally valid and in perfect order. Accordingly, the Board of Directors, at their meeting held on 22nd November 2026, has formally approved the transmission of 100 Equity Shares in your favour. Your name has been entered in the Register of Members as the absolute legal owner of these shares.

The particulars of the transmitted shares are set out in the schedule below:

Name of the Deceased Member	Original Folio No.	No. of Shares Transmitted	Distinctive Numbers (From - To)	New Folio No. Allocated
Late Mr. Jayant S. Deshmukh	D-1450	100	5001 - 5100	R-3021

Since transmission occurs by the operation of law, no transfer deed is required, and no stamp duty is payable on this transaction. The original Share Certificate No. 4152, duly endorsed in your name, is enclosed herewith.

Please acknowledge the receipt of the same.

Thanking you.

Yours faithfully,
For Reliant Motors Limited

(Signature)
Ms. Kavita Sharma
Company Secretary

Encl: Share Certificate No. 4152 (duly endorsed)

Examiner's Secret: 3 Critical Points for Scoring Full Marks

Legal Proof Vocabulary: Always mention the receipt of the Death Certificate and the Succession Certificate (or Probate of Will). Without these legal documents, a transmission cannot be approved.

Tone of Condolence: Start the letter with a brief, respectful condolence line ("We deeply regret to hear about the sad demise..."). This showcases professional secretarial etiquette.

Explicit Exemption Mention: Examiners look for the specific phrase confirming that "no transfer deed is required and no stamp duty is payable". This proves your conceptual clarity regarding 'Operation of Law'.

Frequently Asked Questions (HSC Board Exam FAQs)

1. What is the difference between Transfer and Transmission of Shares?

Transfer of shares is a voluntary, deliberate act by a member to sell or gift shares, requiring a Transfer Deed and Stamp Duty. Transmission is an involuntary process triggered by operation of law (death, insolvency, or lunacy), requiring legal proofs but no Transfer Deed or Stamp Duty.

2. Who can claim the transmission of shares in case of a member's death?

The legal heir, executor, administrator, or the official nominee registered with the company/Depository Participant can claim the transmission of shares.

3. Is the consideration (money) paid during the transmission of shares?

No. Since transmission is a passing of ownership by operation of law (inheritance), no monetary consideration is exchanged between the deceased member and the legal representative.

Class 12 SP Letter for Refusal to Transfer Shares: Format & Solved Draft (Chapter 6)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Refusal to Transfer of Shares tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a polite yet legally authoritative letter informing an applicant regarding the Board's refusal to register a share transfer due to unpaid call money or statutory lien is an important practical question 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 provisions under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Section 58, Companies Act 2013): Under Section 58(1) and 58(4), if a company refuses to register the transfer of securities, it must send a formal notice of refusal giving valid reasons to both the transferor and the transferee within 30 days from the date on which the instrument of transfer was lodged. Valid grounds include partly paid shares where call money is overdue, or where the company holds a lien on the shares under its Articles of Association.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a letter to an applicant / transferor expressing the Board's inability to register the transfer of shares on account of unpaid call money, citing the relevant clause in the Articles of Association."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural completeness, diplomatic tone, and statutory justification:

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 / Transferor Name, Address, concise Subject Line, and formal Salutation.	1 Mark
Body of the Letter	Reference to transfer deed lodgement date, Board resolution, specific ground for refusal (unpaid calls), schedule table, and return of documents.	2 Marks
Sign-off & Enclosures	Complimentary close ("Yours faithfully"), Secretary signature block, and Enclosures (Share Certificate and Transfer Deed).	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Letter Regarding Refusal to Transfer of Shares

SUNSHINE AGRO PRODUCTS LIMITED
Registered Office: 102, Commercial Chambers, Senapati Bapat Marg, Lower Parel, Mumbai - 400013.
CIN: L01110MH2011PLC214567
Phone: 022 - 2498 7755
Email: secretarial@sunshineagro.com
Website: www.sunshineagro.com

Ref. No.: SAPL/TRF-REF/2026-27/74

Date: 18th December 2026

To,
Mr. Dilip S. More,
18, Yashoda Sadan, G.B. Road,
Thane (West) - 400601.

Subject: Refusal to Register the Transfer of Equity Shares.

Dear Sir,

With reference to the Instrument of Transfer (Form SH-4) lodged by you on 28th November 2026 for the transfer of 100 Equity Shares in favour of Mr. Rohit A. Joshi, I am directed to inform you, with sincere regret, that the Board of Directors at their meeting held on 12th December 2026 has refused to register the said transfer of shares.

The refusal is in accordance with Clause 42 of the Articles of Association of the company, which empowers the Board to refuse registration of transfer of any shares on which the company has a lien or on which any call money remains unpaid by the member.

The particulars of the shares lodged and the outstanding call arrears are set out in the schedule below:

Folio No.	Share Certificate No.	Distinctive Numbers (From - To)	No. of Shares Lodged	Unpaid Final Call Amount Due @ ₹ 2.50 (₹)
D-2105	6142	8001 - 8100	100	250.00

Despite reminder notices dispatched earlier, the Final Call money of ₹ 250/- on these shares remains unpaid as of date. Consequently, the company has exercised its statutory lien on these shares.

We are returning herewith the original Share Certificate No. 6142 along with the Instrument of Transfer (Form SH-4). You are requested to clear the outstanding call arrears along with interest due, after which you may re-lodge the transfer documents for the Board's reconsideration.

We regret the inconvenience caused to you.

Thanking you.

Yours faithfully,
For Sunshine Agro Products Limited

(Signature)
Mr. Sandeep G. Joshi
Company Secretary

Encl:
1. Share Certificate No. 6142
2. Instrument of Transfer (Form SH-4)

Examiner's Secret: 3 Critical Points for Scoring Full Marks

The 30-Day Refusal Notice Rule: Ensure that the date of the letter (18th December 2026) is within 30 days of the lodgement date (28th November 2026) to demonstrate strict compliance with Section 58 of the Act.

Return of Documents (Mandatory Enclosure): Whenever a transfer is refused, the original share certificate and the transfer deed MUST be returned to the applicant. Always list both documents under Encl: at the bottom-left.

Polite and Constructive Tone: Avoid blunt language. Frame the refusal with courtesy ("with sincere regret") and clearly explain how the shareholder can clear the dues and re-lodge the application.

Frequently Asked Questions (HSC Board Exam FAQs)

1. Within how many days must a company send a notice of refusal of transfer?

Under Section 58 of the Companies Act, 2013, the company must issue a notice of refusal giving specific reasons to both the transferor and the transferee within 30 days from the date of receipt of the transfer deed.

2. What are the common grounds on which a company can refuse share transfer?

A company can refuse registration of transfer if: (a) call money on the shares is unpaid, (b) the company holds a lien on the shares, (c) the transfer deed is incomplete or improperly stamped, or (d) the transfer is in violation of the Articles of Association or any court order.

3. What remedy does an aggrieved transferee have if the company wrongfully refuses transfer?

The transferee may appeal to the National Company Law Tribunal (NCLT) within 30 days of receiving the refusal notice (or within 60 days of lodging the transfer deed if no response is received).

Class 12 SP Letter for Approval of Share Transfer: Format & Solved Draft (Chapter 6)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Approval of Transfer of Shares tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a formal letter informing the transferee regarding the Board's approval of share transfer and enclosing the endorsed share certificate is a frequently tested practical question 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 provisions under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Section 56(4)(c), Companies Act 2013): Every company must deliver the endorsed share certificate to the transferee within one month from the date of receipt of the instrument of transfer (Form SH-4) along with the original share certificate. The transfer becomes legally effective only after the Board of Directors approves it and the transferee's name is entered in the Register of Members.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a letter to the transferee informing him / her regarding the approval of transfer of shares and enclosing the share certificate duly endorsed in his / her name, citing the resolution passed at the Board Meeting."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural completeness and statutory accuracy:

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	Transferee Name, Address, concise Subject Line, and formal Salutation.	1 Mark
Body of the Letter	Reference to transfer deed lodgement, Board resolution approval, transfer schedule table, and statutory 1-month delivery.	2 Marks
Sign-off & Enclosure	Complimentary close ("Yours faithfully"), Secretary signature block, and mandatory Enclosure ("Encl: Share Certificate No. ... duly endorsed").	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Letter Informing Approval of Transfer of Shares

Ref. No.: SAPL/TRF-APP/2026-27/62

Date: 15th December 2026

To,
Mr. Rohit A. Joshi,
24, Anand Bhuvan, Tilak Road,
Dombivli (East) - 421201.

Subject: Approval of Transfer of Shares and Dispatch of Endorsed Share Certificate.

Dear Sir,

With reference to the Instrument of Transfer (Form SH-4) lodged by you on 20th November 2026 along with Share Certificate No. 5840, I am pleased to inform you that the Board of Directors, at their meeting held on 10th December 2026, has approved the transfer of 100 Equity Shares in your favour.

In compliance with Section 56(4) of the Companies Act, 2013, your name has been duly entered in the Register of Members of the company as the lawful holder of the said shares. The particulars of the share transfer are set out in the schedule below:

New Folio No.	Name of the Transferor	No. of Shares Transferred	Distinctive Numbers (From - To)	Share Certificate No.
R-4120	Mr. Deepak M. Verma	100	4001 - 4100	5840

The original Share Certificate No. 5840, duly endorsed in your name under the signature of the authorized officers of the company, is enclosed herewith. Please acknowledge receipt of the certificate by signing and returning the acknowledgment counterfoil attached hereto.

Thanking you.

Yours faithfully,
For Sunshine Agro Products Limited

(Signature)
Mr. Sandeep G. Joshi
Company Secretary

Encl: Share Certificate No. 5840 (duly endorsed)

Examiner's Secret: 3 Critical Points for Scoring Full Marks

The 1-Month Statutory Rule: The lodgement date mentioned in the body (20th November 2026) and the date of the letter (15th December 2026) must be within one month to reflect legal compliance with Section 56(4).

Mandatory Enclosure Line: Always write Encl: Share Certificate No. ... (duly endorsed) at the bottom-left margin. Without this, you lose 1 full mark for sign-off completeness.

Schedule Table Details: The schedule must show the Transferor's name, Transferee's new Folio Number, Distinctive Numbers, and Certificate Number clearly.

Frequently Asked Questions (HSC Board Exam FAQs)

1. Within how many days must a company complete the transfer of shares?

Under Section 56(4)(c) of the Companies Act, 2013, every company must deliver the endorsed share certificate within one month from the date of receipt of the transfer deed by the company.

2. What is an 'Endorsement' on a Share Certificate?

An endorsement is an official notation made by the company on the reverse of an existing physical share certificate, recording the transfer date, the name of the new owner (transferee), and the signature of the authorized signatory.

3. Which statutory form is used for the transfer of physical shares?

Under Rule 11 of the Companies (Share Capital and Debentures) Rules, 2014, physical share transfers must be executed using statutory Form SH-4 (Securities Transfer Form), stamped and signed by both the transferor and transferee.

Class 12 SP Reply to Query on Low Dividend: Format & Solved Draft (Chapter 6)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on Replying to a Member's Query Regarding Low Rate of Dividend tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a courteous and convincing reply to an aggrieved shareholder questioning a reduced dividend rate is a classic test of secretarial tact 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 principles under the Companies Act, 2013, and a textbook-accurate solved model answer.

Secretarial Practice Golden Rule (Tact & Politeness): Shareholders are the owners and risk-bearers of the company. When dividend payouts fall, shareholders naturally register their dissatisfaction. The Company Secretary must respond promptly with empathy and politeness, giving valid commercial justifications (such as reserve transfers or plant expansion) while maintaining strict secrecy regarding unreleased corporate strategies.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a letter to an equity shareholder replying to his / her query regarding the low rate of dividend declared by the company for the current financial year."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural completeness, diplomatic tone, and commercial justification:

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	Shareholder Name, Address, concise Subject Line, and formal Salutation.	1 Mark
Body of the Letter	Acknowledgment of query letter, clear business reasons for reduced dividend, reassurance of future profitability, and goodwill.	2 Marks
Sign-off & Subscription	Complimentary close ("Yours faithfully"), company name, and Company Secretary signature block.	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Reply to Query on Low Rate of Dividend

Ref. No.: SAPL/MEM-DIV/2026-27/55

Date: 20th November 2026

To,
Mr. Suresh L. Patil,
Flat No. 15, Shivneri Co-op Housing Society, Tilak Road,
Dadar (East), Mumbai - 400014.

Subject: Reply to your query regarding low rate of dividend.

Dear Sir,

This is with reference to your letter dated 5th November 2026, wherein you expressed concern and dissatisfaction regarding the recommendation of a lower dividend rate of 5% on equity shares for the financial year ended 31st March 2026, compared to 12% paid in the previous financial year.

The Board of Directors appreciates your genuine concern and has directed me to explain the commercial factors that necessitated this prudent decision:

Unfavorable Market Conditions: During the financial year under review, unseasonal rains and global supply chain disruptions severely escalated raw material costs, resulting in compressed operational margins across the agro-processing sector.
Transfer to General Reserve: In accordance with the company's long-term conservative financial policy, the Board decided to transfer ₹ 15 Crores to the General Reserve to fortify the company's financial resilience against unexpected economic contingencies.
Ploughing Back of Profits for Expansion: A substantial portion of the net profit has been retained for funding the new automated cold storage and processing facility at Nashik. Financing this project through internal accruals rather than high-cost bank borrowings saves substantial interest expenses for the company.

The Board assures you that this retention of earnings is an investment in the company's future growth and competitive advantage. The expanded capacity will begin commercial operations in the upcoming quarter, which will significantly enhance revenues, capital appreciation, and future dividend distributions.

We trust the above explanation clarifies the situation and clarifies the management's long-term perspective. We thank you for your continued patience, trust, and cooperation.

Thanking you.

Yours faithfully,
For Sunshine Agro Products Limited

(Signature)
Mr. Sandeep G. Joshi
Company Secretary

Examiner's Secret: 3 Critical Points for Scoring Full Marks

No Enclosure Line: This is a purely explanatory and courteous reply. Do NOT write an Encl: line. Adding an attachment slip here demonstrates a lack of basic secretarial understanding.

Reference to Shareholder's Letter: Always begin the opening paragraph by referring to the date of the member's original letter of complaint (e.g., "With reference to your letter dated 5th November 2026...").

Sound Financial Justification: Cite at least two realistic financial reasons—such as transfer of profits to general reserve, plant modernization, or economic downturn—to show corporate finance competence.

Frequently Asked Questions (HSC Board Exam FAQs)

1. Can a shareholder legally force a company to declare a higher dividend?

No. Under the Companies Act, 2013, the declaration of dividend is at the discretion of the Board of Directors. Shareholders can reduce the recommended dividend rate at the AGM, but they have no legal power to increase it.

2. What is meant by 'Ploughing Back of Profits'?

'Ploughing back of profits' (or self-financing) refers to retaining a portion of net earnings within the business instead of distributing it as dividends, utilizing these funds for modernization, expansion, or working capital.

3. Why must the secretary observe 'Secrecy' when drafting this letter?

While the secretary must satisfy the member's query convincingly, they must not divulge price-sensitive or confidential trade data (such as unannounced acquisitions or proprietary technology) that could harm the company's market competitiveness.

Class 12 SP Letter for Payment of Final Dividend: Format & Solved Warrant Specimen (Chapter 6)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Payment of Final Dividend (via Dividend Warrant) tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a formal letter dispatching a physical dividend warrant to an equity shareholder is a recurring high-scoring question 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 dividend provisions under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Section 123, Companies Act 2013): Final dividend is recommended by the Board of Directors and declared by the shareholders at the Annual General Meeting (AGM). Once declared, it becomes a statutory debt that must be paid within 30 days. A physical Dividend Warrant is valid for payment at the designated bank for a period of 3 months from the date of issue.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a letter to an equity shareholder regarding the payment of final dividend, enclosing a Dividend Warrant, in accordance with the resolution passed at the Annual General Meeting."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural completeness and factual accuracy:

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	Shareholder Name, Address, concise Subject Line, and formal Salutation.	1 Mark
Body of the Letter	Reference to AGM approval, rate of dividend, tabular calculation schedule, bank encashment details, and 3-month validity.	2 Marks
Sign-off & Enclosure	Complimentary close ("Yours faithfully"), Secretary signature block, and mandatory Enclosure ("Encl: Dividend Warrant No. ...").	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Letter for Payment of Final Dividend (Warrant Mode)

TATA CHEMICALS CONSUMER PRODUCTS LIMITED
Registered Office: Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400001.
CIN: L24239MH2008PLC187654
Phone: 022 - 6665 8282
Email: investors@tatachemicalsconsumer.com
Website: www.tatachemicalsconsumer.com

Ref. No.: TCCPL/DIV-W/2026-27/84

Date: 4th November 2026

To,
Mr. Kishor M. Mehta,
24, Shanti Kunj, M.G. Road,
Vile Parle (East), Mumbai - 400057.

Subject: Payment of Final Dividend on Equity Shares.

Dear Sir,

I am instructed by the Board of Directors to inform you that at the 18th Annual General Meeting (AGM) of the company held on 14th October 2026, the shareholders have approved the payment of a Final Dividend of ₹ 2.50 per Equity Share (i.e. 25%) of the face value of ₹ 10/- each, for the financial year ended 31st March 2026.

The dividend is payable to those equity shareholders whose names appeared on the Register of Members of the company at the close of business hours on 5th October 2026 (Record Date).

We are pleased to enclose herewith Dividend Warrant No. DW-74120 drawn on State Bank of India, Fort Branch, Mumbai, for the net dividend amount due to you. The details of the dividend calculation are set out in the schedule below:

Folio No.	No. of Shares Held	Distinctive Numbers (From - To)	Dividend Warrant No.	Gross Dividend Amount (₹)	TDS Deducted (₹)	Net Dividend Payable (₹)
K-2015	100	1001 - 1100	DW-74120	250.00	Nil	250.00

(Calculation: 100 Equity Shares @ ₹ 2.50 per share = ₹ 250.00)

Please detach the enclosed Dividend Warrant along the perforated line and present it for payment at any branch of State Bank of India. Please note that the warrant is valid for payment only for a period of 3 months from the date of issue. If it is not encashed within this period, it must be returned to the company for revalidation.

Thanking you.

Yours faithfully,
For Tata Chemicals Consumer Products Limited

(Signature)
Mr. Arvind S. Kulkarni
Company Secretary

Encl: Dividend Warrant No. DW-74120

Examiner's Secret: 3 Critical Points for Scoring Full Marks

Mandatory Enclosure Line: Unlike electronic payments where funds are directly wired, this letter dispatches a physical negotiable instrument. Omitting Encl: Dividend Warrant No. ... at the bottom-left is an automatic deduction of 1 full mark.

The 30-Day Legal Alignment: Check your dates carefully! The letter date (4th November 2026) must fall strictly within 30 days of the AGM date (14th October 2026) to prove compliance with Section 123 of the Companies Act.

Validity Period Disclosure: Always mention in the concluding paragraph that the dividend warrant remains valid for 3 months from the date of issue.

Frequently Asked Questions (HSC Board Exam FAQs)

1. Within how many days must declared dividends be paid to shareholders?

Under Section 123 of the Companies Act, 2013, declared dividends must be paid within 30 days from the date of their declaration at the Annual General Meeting.

2. What is the validity period of a Dividend Warrant?

A physical Dividend Warrant is valid for encashment for 3 months from its date of issue. After 3 months, it becomes stale and must be sent back to the company for revalidation.

3. What is the Unpaid Dividend Account?

Under Section 124 of the Companies Act, 2013, if a dividend remains unpaid or unclaimed for 30 days from the date of declaration, the company must transfer the total unpaid amount to a special bank account titled the 'Unpaid Dividend Account' within 7 days.

Class 12 SP Letter of Regret (Non-Allotment of Shares): Format & Solved Draft (Chapter 6)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Letter of Regret (Non-Allotment of Shares) tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a courteous letter informing an unsuccessful applicant about the non-allotment of equity shares and the refund of application money is a classic high-scoring question 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 refund rules under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Section 39 & Section 40, Companies Act 2013): If a company cannot allot shares to an applicant due to over-subscription or non-fulfillment of allotment criteria, the entire application money received must be refunded within 15 days from the closure of the issue. If the company fails to repay the application money within this statutory timeframe, it is liable to pay interest at the rate of 15% per annum from the expiry of the fifteenth day.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a Letter of Regret to an applicant informing him / her regarding the non-allotment of equity shares due to heavy over-subscription of the public issue, and enclosing a Refund Order."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural completeness and factual accuracy:

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	Reason for non-allotment (over-subscription), reference to Board resolution, tabular refund schedule, and banking details.	2 Marks
Sign-off & Enclosure	Complimentary close ("Yours faithfully"), Secretary signature block, and mandatory Enclosure ("Encl: Refund Order No. ...").	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Letter of Regret (Non-Allotment of Shares)

KIRAN TEXTILES & APPARELS LIMITED
Registered Office: 401, Nariman Bhavan, 227, Backbay Reclamation, Nariman Point, Mumbai - 400021.
CIN: L17120MH2008PLC185694
Phone: 022 - 6610 8844
Email: secretarial@kirantextiles.com
Website: www.kirantextiles.com

Ref. No.: KTAL/SH-REG/2026-27/102

Date: 25th November 2026

To,
Mr. Kedar N. Bapat,
7, Shreeram Niwas, Gokhale Road,
Dadar (West), Mumbai - 400028.

Subject: Non-Allotment of Equity Shares and Refund of Application Money.

Dear Sir,

The Board of Directors thanks you for your interest in the company and acknowledges receipt of your Application No. EA-92140 dated 18th October 2026 for 100 Equity Shares of the face value of ₹ 10/- each.

I am directed by the Board of Directors to inform you, with deep regret, that the company has been unable to allot any equity shares to you. Owing to an overwhelming response from the investing public, the public issue was heavily over-subscribed. Consequently, the Board of Directors, in consultation with the officials of the BSE Limited and as per the approved Basis of Allotment finalized on 15th November 2026, had to conduct allotment by lottery/proportional allocation, in which your application could not be accommodated.

As per the statutory provisions of the Companies Act, 2013 and SEBI regulations, the application money deposited by you is refunded in full. The particulars of your refund are set out in the schedule below:

Application No.	No. of Shares Applied	Application Money Paid per Share (₹)	Total Refund Amount (₹)	Refund Order No.
EA-92140	100	2.50	250.00	RO-542109

Enclosed herewith please find Refund Order No. RO-542109 dated 24th November 2026 drawn on Bank of Maharashtra, Nariman Point Branch, Mumbai, for ₹ 250/- (Rupees Two Hundred and Fifty Only).

You are requested to detach the enclosed Refund Order and present it for encashment through your bankers. We sincerely regret our inability to allot shares to you on this occasion and look forward to your association with our future corporate issues.

Thanking you.

Yours faithfully,
For Kiran Textiles & Apparels Limited

(Signature)
Mr. Nitin K. Joshi
Company Secretary

Encl: Refund Order No. RO-542109

Examiner's Secret: 3 Critical Points for Scoring Full Marks

The Tone of Courtesy: Even though the letter delivers negative news, the tone must remain courteous, appreciative of the investor's trust, and regretful (C-L-P-S-P: Politeness).

Valid Statutory Reason: Always mention "heavy over-subscription" and "basis of allotment approved by the Stock Exchange" as the legal reason for non-allotment.

Mandatory Enclosure Line: Always write Encl: Refund Order No. ... at the bottom-left margin. If the payment is electronic, replace the enclosure with bank credit / UTR details.

Frequently Asked Questions (HSC Board Exam FAQs)

1. Within how many days must a company refund share application money?

Under Section 39 of the Companies Act, 2013 and SEBI guidelines, application money must be refunded within 15 days from the closure of the subscription list or date of allotment.

2. What penal interest is charged if a company delays refunding application money?

If the company fails to refund application money within 15 days, it is liable to repay that money with interest at the rate of 15% per annum for the delayed period under Section 40(3) of the Act.

3. Can the company deduct any administrative charges from the refund amount?

No. The company must refund the full application money without any deduction or handling charge to the unsuccessful applicants.

Class 12 SP Letter for Issue of Share Certificate: Format & Solved Draft (Chapter 6)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Issue of Share Certificate tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a formal intimation letter regarding the dispatch of a share certificate to a shareholder following allotment is one of the foundational 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 guidelines under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Section 56(4)(b), Companies Act 2013): Every company must deliver share certificates within two months from the date of allotment of equity or preference shares. The share certificate is a registered document of title under the common seal of the company (or signed by two directors and countersigned by the Company Secretary) and serves as prima facie legal evidence of ownership.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a letter to a shareholder informing him / her regarding the dispatch of a Share Certificate within 2 months of allotment, citing the resolution passed at the Board Meeting."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural completeness and factual accuracy:

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	Member Name, Address, concise Subject Line, and formal Salutation.	1 Mark
Body of the Letter	Reference to Allotment Letter, Board resolution, statutory 2-month timeline, tabular schedule of shares, and registered post dispatch.	2 Marks
Sign-off & Enclosure	Complimentary close ("Yours faithfully"), Secretary signature block, and mandatory Enclosure ("Encl: Share Certificate No. ...").	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Letter for Issue of Share Certificate

Ref. No.: SAPL/SH-CERT/2026-27/08

Date: 12th December 2026

To,
Mr. Mahesh N. Sharma,
Flat No. 12, Gokul Dham Society, M.G. Road,
Mulund (West), Mumbai - 400080.

Subject: Issue and Dispatch of Share Certificate.

Dear Sir,

With reference to your Application No. AP-3342 and our Allotment Letter No. AL-458 dated 20th October 2026, I am pleased to inform you that in accordance with the resolution passed at the meeting of the Board of Directors held on 5th December 2026, Share Certificate No. 7852 has been duly prepared and signed in accordance with statutory guidelines.

In compliance with Section 56(4) of the Companies Act, 2013, the Share Certificate has been issued within two months from the date of allotment. The certificate is duly stamped and executed under the common seal of the company and counter-signed by two Directors and the Company Secretary.

The particulars of the shares issued to you are set out in the schedule below:

Register Folio No.	Share Certificate No.	Distinctive Numbers (From - To)	No. of Equity Shares Issued
M-5402	7852	3001 - 3100	100

The Share Certificate is enclosed herewith and is dispatched by Registered Post to your registered address. Kindly acknowledge the receipt of the share certificate by signing and returning the counterfoil slip attached to the certificate.

Thanking you.

Yours faithfully,
For Sunshine Agro Products Limited

(Signature)
Mr. Sandeep G. Joshi
Company Secretary

Encl: Share Certificate No. 7852

Examiner's Secret: 3 Critical Points for Scoring Full Marks

The 2-Month Timeline Check: The date of allotment mentioned in the first paragraph (e.g., 20th October 2026) and the date of the letter (e.g., 12th December 2026) must strictly fall within the statutory 2-month window.

Mandatory Enclosure Line: Always include Encl: Share Certificate No. ... at the bottom-left margin. Without this, 1 full mark will be deducted from your presentation score.

Execution Authority: Mention that the certificate is executed under the company seal (or signed by two directors and the Company Secretary) to show clear legal mastery.

Frequently Asked Questions (HSC Board Exam FAQs)

1. Within what time limit must a company deliver Share Certificates after allotment?

Under Section 56(4)(b) of the Companies Act, 2013, every company must deliver share certificates within 2 months from the date of allotment to the allottees.

2. Within what time limit must Share Certificates be delivered in case of transfer or transmission?

In case of transfer or transmission of shares, the company must deliver the endorsed share certificate within 1 month from the date of receipt of the transfer deed or intimation of transmission.

3. Who must sign the Share Certificate of a company?

Under the Companies (Share Capital and Debentures) Rules, 2014, a share certificate must be signed by at least two directors authorized by the Board, and countersigned by the Company Secretary or an authorized person.

Class 12 SP Letter of Allotment of Shares: Format & Solved Draft (Chapter 6)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Allotment of Equity Shares tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a formal Share Allotment Letter to an applicant following a public subscription is a cornerstone topic 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 guidelines under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Section 39, Companies Act 2013 & SEBI Regulations): A company cannot proceed with the allotment of securities unless the minimum subscription (90% of the issue size) has been received within the prescribed statutory period. Allotment represents the formal acceptance by the company of the applicant's offer to take shares, creating a legally binding contract between the member and the company.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a Letter of Allotment of Equity Shares to an applicant, informing him / her about the allotment of 100 equity shares and calling for the payment of allotment money, citing the resolution passed at the Board Meeting."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural completeness and factual accuracy:

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, payment deadline, and banker details.	2 Marks
Sign-off & Enclosure	Complimentary close ("Yours faithfully"), Secretary signature block, and Enclosure ("Encl: Allotment Slip / Challan").	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 Equity Shares

Ref. No.: KTAL/SH-ALLOT/2026-27/45

Date: 18th November 2026

To,
Mr. Ramesh S. Patil,
104, Sai Sadan, Tilak Road,
Ghatkopar (East), Mumbai - 400077.

Subject: Allotment of Equity Shares.

Dear Sir,

In response to your Application No. EA-88901 dated 15th October 2026, I am pleased to inform you that the Board of Directors, at their meeting held on 10th November 2026, has approved the allotment of 100 Equity Shares of face value ₹ 10/- each to you.

The particulars of the shares allotted and the amount payable on allotment are set out in the schedule below:

Folio No.	No. of Shares Applied	No. of Shares Allotted	Distinctive Numbers (From - To)	Amount Received on Application @ ₹ 2.50 (₹)	Amount Due on Allotment @ ₹ 2.50 (₹)
E-4052	100	100	2001 - 2100	250.00	250.00

You are hereby requested to pay the allotment money of ₹ 250/- (Rupees Two Hundred and Fifty Only) on or before 5th December 2026 to the company's bankers, Bank of Maharashtra, Nariman Point Branch, Mumbai, along with the enclosed Allotment Slip / Pay-in-Slip.

Payment may also be made electronically through NEFT / RTGS using the virtual account details indicated on the allotment slip. Please note that failure to pay the allotment money by the due date will make the shares liable to forfeiture in terms of the Articles of Association of the company.

The Share Certificate will be dispatched to you within two months from the date of allotment in exchange for the receipted Allotment Slip.

Thanking you.

Yours faithfully,
For Kiran Textiles & Apparels Limited

(Signature)
Mr. Nitin K. Joshi
Company Secretary

Encl: Allotment Slip No. 4052

Examiner's Secret: 3 Critical Points for Scoring Full Marks

Consistent Arithmetic: Make sure the application money per share and allotment money per share align perfectly with the number of shares allotted ($100 \times ₹ 2.50 = ₹ 250$).

Clear Due Date for Payment: Always provide a realistic future payment deadline (usually 15 to 21 days from the date of the letter) and specify the authorized banker's name and branch.

Mandatory Enclosure: Always mention Encl: Allotment Slip No. ... at the bottom-left margin, as the shareholder must present this slip while depositing the allotment money.

Frequently Asked Questions (HSC Board Exam FAQs)

1. What is the statutory minimum subscription required before allotment?

Under SEBI regulations, a public company cannot proceed to allot shares unless it receives at least 90% of the total issued amount as minimum subscription within the specified offer period.

2. What happens if an applicant fails to pay the allotment money?

If the allottee fails to remit the allotment money within the stipulated period, the company issues a reminder/call notice, and if non-payment persists, the Board of Directors has the statutory power to forfeit the shares as per the Articles of Association.

3. What is an Allotment Slip?

An Allotment Slip is a detachable counterfoil or challan attached to the Allotment Letter. The applicant submits it along with the allotment money to the company's designated bank, and the receipted slip is returned as proof of payment.

Class 12 SP Letter for Payment of Dividend Electronically: Format & Solved Draft (ECS/NEFT)

Master the official format and scoring guidelines for the Class 12 Secretarial Practice (SP) letter on the Payment of Dividend Electronically (via ECS / NEFT) designed for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting an intimation letter to a shareholder regarding the direct electronic transfer of an interim or final dividend is one of the highest-scoring questions in Question 7 (Letter Writing), carrying a direct weightage of 5 marks. Below, you will find the official question scenario, step-wise marking distribution, statutory rules under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Section 123, Companies Act 2013): A company must pay declared dividends within 30 days from the date of declaration in the Annual General Meeting (AGM). Failure to disburse dividends within this statutory window attracts severe penal interest and legal liability. Electronic modes (ECS/NEFT/Direct Credit) ensure instant delivery and eliminate the risks of lost or forged physical warrants.

HSC Board Examination Question Scenario

In the HSC examination, this question is typically framed as follows:

"Draft a letter to a shareholder informing him / her regarding the payment of dividend electronically through ECS / NEFT, citing the resolution passed at the Annual General Meeting."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence based on structural precision and legal compliance:

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	Shareholder Name, Address, concise Subject Line, and formal Salutation.	1 Mark
Body of the Letter	Reference to AGM resolution, dividend rate, tabular calculation schedule, and bank credit details.	2 Marks
Sign-off & Subscription	Complimentary close ("Yours faithfully"), company name, and Company Secretary signature block.	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Payment of Dividend Electronically

RELIANT MOTORS LIMITED
Registered Office: 88, Auto Park, Chakan, Pune - 410501.
CIN: L29100PN2010PLC123456
Phone: 020 - 2567 1122
Email: investors@reliantmotors.com
Website: www.reliantmotors.com

Ref. No.: RML/DIV/E-42/2026-27

Date: 10th November 2026

To,
Mrs. Sneha S. Patil,
Flat No. 4, Green Park Society, Shivaji Nagar,
Pune - 411005.

Subject: Intimation of Electronic Payment of Dividend via NEFT / ECS.

Dear Madam,

I am instructed by the Board of Directors to inform you that at the 16th Annual General Meeting (AGM) of the company held on 5th November 2026, the shareholders have unanimously approved the recommendation of the Board of Directors to pay a Final Dividend of ₹ 5.00 per Equity Share of the face value of ₹ 10/- each, for the financial year ended 31st March 2026.

We are pleased to inform you that as per the Electronic Clearing Service (ECS) mandate registered by you with the company and your Depository Participant, the dividend amount due to you has been directly remitted to your bank account. The details of the dividend payout are summarized in the schedule below:

Registered Folio / Client ID	No. of Equity Shares Held	Dividend Per Share (₹)	Gross Dividend Amount (₹)	TDS Deducted (₹)	Net Dividend Paid (₹)
IN300123 - 45678910	200	5.00	1,000.00	Nil	1,000.00

The net dividend amount has been credited directly to your bank account as per the following details:

Bank Name: State Bank of India
Branch: Shivaji Nagar Branch, Pune
Bank Account Number: *******4567
Transaction Reference (UTR) No.: NEFT/SBI/261110/889977
Date of Credit: 10th November 2026

Kindly verify the credit entry in your bank passbook or account statement. Please notify the company immediately if there is any discrepancy.

Thanking you.

Yours faithfully,
For Reliant Motors Limited

(Signature)
Ms. Kavita Sharma
Company Secretary

Examiner's Secret: 3 Critical Points for Scoring Full Marks

No "Enclosure" Line: Because the payment is electronic (NEFT/ECS), no physical dividend warrant is attached. Writing an "Encl:" line here is a common factual error that costs marks!

The 30-Day Rule: Make sure the date of the letter and the date of credit are within 30 days of the AGM date mentioned in the first paragraph.

Clear Arithmetic in Table: Ensure that the calculation is mathematically accurate ($200 \text{ shares} \times ₹ 5.00 = ₹ 1,000.00$). If TDS is Nil, explicitly write "Nil".

Frequently Asked Questions (HSC Board Exam FAQs)

1. Within how many days must a declared dividend be paid to shareholders?

Under Section 123 of the Companies Act, 2013, declared dividends must be paid to eligible shareholders within 30 days from the date of declaration at the AGM.

2. What is the difference between an Interim Dividend and a Final Dividend?

An Interim Dividend is declared by the Board of Directors between two Annual General Meetings out of surplus profits. A Final Dividend is recommended by the Board and approved by the shareholders at the Annual General Meeting at the end of the financial year.

3. Why is electronic payment preferred over physical Dividend Warrants?

Electronic dividend payment prevents loss in transit, reduces administrative printing and mailing costs, avoids fraudulent encashment, and ensures immediate credit directly into the investor's bank account.

Class 12 SP Letter for Issue of Bonus Shares: Format, Marking Scheme & Solved Specimen

Master the official format and scoring secrets for the Class 12 Secretarial Practice (SP) letter on the Issue of Bonus Shares tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a letter informing an equity shareholder about the allotment of bonus shares through the capitalisation of reserves 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 problem scenario, step-wise marking breakdown, statutory legal conditions under the Companies Act, 2013, and a textbook-accurate solved model answer.

Statutory Rule (Section 63, Companies Act 2013): Bonus shares are fully paid-up shares issued free of cost to existing equity shareholders in proportion to their shareholding. They can only be issued out of Free Reserves, Securities Premium Account, or Capital Redemption Reserve Account. Bonus shares cannot be issued in lieu of dividends.

HSC Board Examination Question Scenario

In the HSC examination, the question for this letter is typically framed as follows:

"Draft a letter to a shareholder informing him / her regarding the issue of Bonus Shares in the ratio of 1:1, in accordance with the resolution passed at the Extra-Ordinary General Meeting."

Official HSC Step-Wise Marking Breakdown (5 Marks)

Examiners evaluate secretarial correspondence strictly based on structural completeness and factual accuracy:

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	Shareholder Name, Address, concise Subject Line, and formal Salutation.	1 Mark
Body of the Letter	Mention of EGM resolution, 1:1 bonus ratio, record date, tabular schedule of shares, and Demat credit details.	2 Marks
Sign-off & Subscription	Complimentary close ("Yours faithfully"), company name, and Company Secretary signature block.	1 Mark
Total Marks	Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total)	5 Marks

Solved Model Answer: Letter for Issue of Bonus Shares

YASH CHEMICALS INDUSTRIES LIMITED
Registered Office: 45, MIDC Industrial Area, Andheri (East), Mumbai - 400093.
CIN: L24110MH2005PLC154879
Phone: 022 - 2836 4501
Email: secretarial@yashchemicals.com
Website: www.yashchemicals.com

Ref. No.: YCL/BONUS/SH-12/2026-27

Date: 2nd November 2026

To,
Mr. Anand R. Shah,
15, Shanti Niketan Apartments, S.V. Road,
Vile Parle (West), Mumbai - 400056.

Subject: Allotment of Bonus Shares.

Dear Sir,

I am directed by the Board of Directors to inform you that in accordance with the resolution passed at the Extra-Ordinary General Meeting (EGM) of the company held on 15th October 2026, the shareholders have unanimously approved the recommendation of the Board to capitalise a portion of the company's General Reserves by issuing fully paid-up Bonus Shares.

The Bonus Shares are allotted in the ratio of 1:1, i.e., One (1) additional fully paid Equity Share for every One (1) existing Equity Share held by the members whose names appeared on the Register of Members on the Record Date, which was fixed as 25th October 2026.

The details of the Bonus Shares allotted to you are specified in the schedule below:

DP ID / Client ID	No. of Shares Held on Record Date	Bonus Ratio	No. of Bonus Shares Allotted	Distinctive Numbers (From - To)
IN300123 / 10458890	100	1:1	100	5001 - 5100

The company has strictly complied with all statutory regulations and guidelines laid down by the Companies Act, 2013 and SEBI for the issue of Bonus Shares. The newly issued Bonus Shares will rank pari passu with the existing equity shares of the company in all respects.

Since your shares are held in dematerialized form, the allotted bonus shares have been directly credited to your Demat account with Central Depository Services (India) Limited (CDSL). No physical share certificate will be dispatched.

Thanking you.

Yours faithfully,
For Yash Chemicals Industries Limited

(Signature)
Mr. Rajesh V. Patil
Company Secretary

Examiner's Secret: 3 Costly Mistakes to Avoid in this Letter

Forgetting the Ratio: Always mention the bonus ratio clearly (e.g., 1:1 or 2:1) in both the second paragraph and inside the schedule table.

Missing the Record Date: A bonus share allocation cannot occur without a statutory "Record Date." Always cite a plausible record date occurring between the EGM date and the letter date.

Dematerialization Awareness: Modern Maharashtra Board answer keys expect a mention of direct credit to the Demat account (CDSL/NSDL) rather than enclosing physical share certificates.

Frequently Asked Questions (HSC Board Exam FAQs)

1. What is the statutory meaning of 'Capitalisation of Reserves'?

Capitalisation of reserves means converting undistributed accumulated profits or reserves into permanent share capital by issuing fully paid bonus shares to existing shareholders without charging any cash consideration.

2. Can bonus shares be issued to Preference Shareholders?

No. Under the Maharashtra Board SP syllabus and Section 63 of the Companies Act, bonus shares can only be issued to fully paid-up Equity Shareholders.

3. Which general meeting approves the issue of Bonus Shares?

The recommendation is initiated by the Board of Directors and formally approved by the shareholders in an Extra-Ordinary General Meeting (EGM) or the Annual General Meeting (AGM).