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.