Q.Write a letter to the debenture holder informing him/her about the conversion of debentures into equity shares.

The secretary informs the debenture holder that, as per the terms of issue, his convertible debentures are now being converted into equity shares, giving the conversion ratio, number of shares allotted and the effective date.

When a company has issued convertible debentures, the terms provide that after a certain period the debentures will be converted into equity shares. The secretary writes to each such debenture holder informing him of the conversion. A properly formatted specimen letter is given below.

SUNRISE TEXTILES LTD.

Registered Office: 78, Ring Road, Nagpur - 440 010

Ref. No.: SEC/DEB/CONV/2026/47

Date: 20th May, 2026

To,

Mrs. Anita Shah

9, Gandhi Marg,

Amravati - 444 601

Sub.: Conversion of convertible debentures into equity shares

Dear Madam,

We wish to inform you that the convertible debentures held by you have become due for conversion as per the terms and conditions of their issue. Accordingly, the Board of Directors, at its meeting held on 15th May, 2026, has approved the conversion of your debentures into fully paid equity shares of the company.

The details of the conversion are as follows:

• Number of convertible debentures held: 100
• Conversion ratio: 1 debenture into 5 equity shares of face value Rs. 10 each
• Number of equity shares allotted to you: 500
• Effective date of conversion: 1st June, 2026

The share certificate / credit of the equity shares to your demat account will be arranged shortly, and your name will be entered in the Register of Members in respect of the above shares. Please surrender your debenture certificate, if held in physical form, along with the enclosed form duly completed.

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