Redemption of Debentures

Notifying Debenture-holders Ahead of Redemption

As the Issue of Debentures chapter's redemption section described, a company must redeem its debentures strictly on the terms fixed at issue, under Section 71(5) of the Companies Act, 2013, doing so chiefly out of funds built up through the Debenture Redemption Reserve. Whichever method applies — lump sum, instalment by drawing lots, conversion, or open-market purchase — the Secretary's office must give debenture-holders advance written notice of the redemption, well before the amount actually falls due, so holders know when and how to present their certificates for repayment.

What a Redemption Notice/Letter States

1. The folio number and distinctive numbers of the debentures being redeemed — for redemption by instalment/drawing of lots, only the debentures actually drawn for that year's redemption.
2. The redemption date on which repayment will be made.
3. The amount payable — the face value if redeemable at par, or the face value plus the stated premium if redeemable at a premium — together with any interest accrued and due up to the redemption date.
4. A request to the holder to surrender the original debenture certificate, duly discharged, on or before a stated date, as a condition of receiving payment.
5. The mode of payment — cheque, demand draft, or direct bank credit.
6. A note that interest will cease to accrue from the redemption date onward.

Specimen Letter — Notice of Redemption of Debentures

KONKAN CERAMICS LIMITED

Registered Office: MIDC Lote Parshuram, Ratnagiri – 415722

CIN: U26900MH2010PLC118181

Date: 2nd January

Mr. Sudhir Naik

Folio No. SP/DEB/0056

Dear Sir,

Sub: Redemption of 9% Secured Redeemable Non-Convertible Debentures — Distinctive Nos. 12001 to 12100

We wish to inform you that the 100, 9% Secured Redeemable Non-Convertible Debentures of ₹100 each held by you under the above folio, bearing Distinctive Numbers 12001 to 12100, fall due for redemption at par on 31st March, 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 25th March, so that payment can be released to you on the due date. The amount payable will comprise the face value of ₹10,000, together with interest accrued up to 31st March, and will be remitted to you by cheque or credited directly to your bank account recorded with us, on or promptly after the redemption date. Please note that interest on these debentures will cease to accrue from 31st March onward.

Thanking you,

Yours faithfully,

For Konkan Ceramics Limited

(Manisha Khot)

Company Secretary …