Q.Draft a letter, on behalf of Konkan Renewable Energies Limited, informing Mr. Abhijit Sawant that, of his 80 Partly Convertible Debentures of ₹100 each (₹40 per debenture convertible), the convertible portion has been converted into equity shares at the ratio of 4 equity shares of ₹10 each per debenture, and that the non-convertible balance continues as a fresh debenture.

For a Partly Convertible Debenture, only the convertible portion converts into shares at the fixed ratio, while the remaining, non-convertible balance continues as debt. …

KONKAN RENEWABLE ENERGIES LIMITED

Registered Office: MIDC Area, Chiplun – 415605

CIN: U40106MH2015PLC172930

Date: 15th May

Mr. Abhijit Sawant

Folio No. SP/DEB/0075

Dear Sir,

Sub: Conversion of Partly Convertible Debentures into Equity Shares

We wish to inform you that, in accordance with the terms of issue approved by the special resolution passed by our shareholders, the convertible portion of the 80, Partly Convertible Debentures of ₹100 each held by you under the above folio stood due for conversion on 10th May.

Of the ₹100 face value of each debenture, ₹40 was designated as convertible at the time of issue. At the fixed conversion ratio of 4 equity shares of ₹10 each, fully paid-up, for every debenture converted, you are accordingly entitled to 320 equity shares of the Company (80 debentures × 4 shares each). Interest on the converted portion ceased to accrue with effect from 10th May, and you will henceforth be entitled to receive dividend, as and when declared, on these shares.

The non-convertible balance of ₹60 per debenture (totalling ₹4,800) continues as a Non-Convertible Debenture, redeemable on its own original terms, and a fresh Debenture Certificate for this balance will be issued to you in exchange for the original certificate.

Kindly surrender the original Debenture Certificate bearing your Distinctive Numbers to our Registered Office, duly discharged, in exchange for your Share Certificate and the fresh Debenture Certificate for the non-convertible balance, both of which we shall issue within the period prescribed under the Companies Act, 2013.

Thanking you,

Yours faithfully, …

Convertible portion per debenture = ₹40; number of debentures = 80; total convertible amount = 80 × ₹40 = ₹3,200. Shares per debenture = 4 of ₹10 each = ₹40 (matches the convertible portion exactly). Total shares = 80 × 4 = 320. Non-convertible balance per debenture = ₹100 − ₹40 = ₹60; total = 80 × ₹60 = ₹4,800 — independently re- …

Students sometimes apply the conversion ratio to the full face value of a Partly Convertible Debenture instead of only its designated convertible portion, or forget that the non-c …