Q.Draft a letter to a depositor regarding repayment of his deposit.

This is a correspondence question. The Company Secretary writes to a depositor whose deposit has matured, informing them that the deposit amount with interest is being repaid and requesting the discharged deposit receipt in return. A properly formatted specimen letter is the answer.

A company that accepts deposits must repay them with interest on the date of maturity. On maturity the secretary corresponds with the depositor to arrange smooth repayment and to obtain the deposit receipt back.

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On maturity of a fixed deposit, the Secretary sends the depositor a letter stating that the deposit is due for repayment, the amount payable with interest, the date, the mode of payment and the receipt to be surrendered, in proper letter format.

A company that accepts deposits must repay them on maturity. It is the Secretary's duty to correspond with the depositor to arrange this repayment on time.

Specimen letter:

GREEN VALLEY LTD.

Registered Office: 30, Station Road, Kolhapur - 416001

Ref: DEP/REP/2023/94

Date: 18th March, 2023

Mrs. Sunita A. Patil

5, Rankala View,

Sangli - 416416

Subject: Repayment of Fixed Deposit on Maturity

Dear Madam,

We wish to inform you that your fixed deposit of Rs. 25,000 (Deposit Receipt No. 94), accepted by the company at 9% interest per annum, is due for repayment on maturity on 31st March, 2023.

Accordingly, the deposit amount of Rs. 25,000 together with the interest due up to the date of maturity will be repaid to you. The amount will be credited directly to your registered bank account on the maturity date.

You are requested to surrender the original Deposit Receipt No. 94, duly discharged, at the company's registered office to enable us to complete the repayment formalities. Should you wish to renew the deposit instead, kindly inform the undersigned before the maturity date.

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Below is a specimen letter from the company secretary to a depositor regarding repayment of his matured deposit, stating the amount repaid and the mode of payment.

A letter regarding repayment of deposit is sent by the secretary when a deposit reaches maturity and is to be repaid. It should state the deposit details, the maturity date, the amount being repaid (deposit plus any interest due), the mode of payment, and request the depositor to return the deposit receipt duly discharged.

Specimen Letter

GOLD COMPANY LIMITED

Registered Office: 45, Nariman Point, Mumbai - 400 021

Ref. No.: DEP/REP/2020/078

Date: 10th February, 2020

Mr. Anil D. Shah

8, Sunrise Apartments,

Thane - 400 601

Dear Sir,

Sub: Repayment of deposit on maturity

We wish to inform you that your fixed deposit of ₹ 40,000 (Rupees Forty Thousand only) placed with our company has matured on 31st January, 2020.

The maturity amount, comprising your deposit of ₹ 40,000 together with the balance of interest due, after deduction of tax at source as applicable, is being repaid to you by crediting your registered bank account through NEFT/ECS (or by an account-payee cheque enclosed herewith).

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