Q.Draft a Notice of Redemption, on behalf of Purandar Foods Limited, informing Mr. Deepak Jagtap that his 150, 8% debentures of ₹100 each, held under Folio No. SP/DEB/0210, are due for redemption at a 5% premium on 30th September, and asking him to surrender the discharged certificate by 20th September.

A redemption notice must state the exact debentures, the redemption date, the amount payable including any premium, and the deadline to surrender the discharged certificate. …

PURANDAR FOODS LIMITED

Registered Office: Saswad Road, Pune – 412301

CIN: U15400MH2013PLC148520

Date: 1st July

Mr. Deepak Jagtap

Folio No. SP/DEB/0210

Dear Sir,

Sub: Redemption of 8% Secured Redeemable Non-Convertible Debentures at Premium

We wish to inform you that the 150, 8% Secured Redeemable Non-Convertible Debentures of ₹100 each held by you under the above folio fall due for redemption, at a premium of 5%, on 30th September, in accordance with the terms of their issue.

Kindly surrender the original Debenture Certificate, duly discharged on the reverse, to our Registered Office, on or before 20th September, so that payment can be released to you on the due date. The amount payable will comprise the face value of ₹15,000, together with a redemption premium of ₹750 (5% of ₹15,000), totalling ₹15,750, plus interest accrued up to 30th September, and will be remitted to you by cheque or credited directly to your bank account recorded with us. Please note that interest on these debentures will cease to accrue from 30th September onward.

Thanking you,

Yours faithfully,

For Purandar Foods Limited

(Vaibhav Chavan)

Company Secretary …

Face value = 150 debentures × ₹100 = ₹15,000. Premium at 5% = ₹15,000 × 5% = ₹750. Total redemption amount (excluding accrued interest) = ₹15,000 + ₹ …

Students sometimes calculate the premium on an assumed round number instead of the actual face value of the specific holding, or forget to add the premium to the face value rather than tr …