SUCR 202 / SUBT 202

UNDERGRADUATE COURSE
[Link] - CORPORATE SECRETARYSHIP
[Link] - BANK MANAGEMENT
SECOND YEAR
THIRD SEMESTER

PAPER - VI

BUSINESS COMMUNICATION

INSTITUTE OF DISTANCE EDUCATION

UNIVERSITY OF MADRAS
[Link]. CORPORATE SECRETARYSHIP / PAPER - VI
BANK MANAGEMENT BUSINESS COMMUNICATION
SECOND YEAR
THIRD SEMESTER

WELCOME
Warm Greetings.

It is with a great pleasure to welcome you as a student of Institute of Distance Education,

University of Madras. It is a proud moment for the Institute of Distance education as you are
entering into a cafeteria system of learning process as envisaged by the University Grants
Commission. Yes, we have framed and introduced Choice Based Credit System(CBCS) in
Semester pattern from the academic year 2018-19. You are free to choose courses, as per the
Regulations, to attain the target of total number of credits set for each course and also each
degree programme. What is a credit? To earn one credit in a semester you have to spend 30
hours of learning process. Each course has a weightage in terms of credits. Credits are assigned
by taking into account of its level of subject content. For instance, if one particular course or
paper has 4 credits then you have to spend 120 hours of self-learning in a semester. You are
advised to plan the strategy to devote hours of self-study in the learning process. You will be
assessed periodically by means of tests, assignments and quizzes either in class room or
laboratory or field work. In the case of PG (UG), Continuous Internal Assessment for 20(25)
percentage and End Semester University Examination for 80 (75) percentage of the maximum
score for a course / paper. The theory paper in the end semester examination will bring out your
various skills: namely basic knowledge about subject, memory recall, application, analysis,
comprehension and descriptive writing. We will always have in mind while training you in
conducting experiments, analyzing the performance during laboratory work, and observing the
outcomes to bring out the truth from the experiment, and we measure these skills in the end
semester examination. You will be guided by well experienced faculty.

I invite you to join the CBCS in Semester System to gain rich knowledge leisurely at
your will and wish. Choose the right courses at right times so as to erect your flag of success.
We always encourage and enlighten to excel and empower. We are the cross bearers to make
you a torch bearer to have a bright future.

With best wishes from mind and heart,

DIRECTOR

(i)
[Link]. CORPORATE SECRETARYSHIP / PAPER - VI
BANK MANAGEMENT BUSINESS COMMUNICATION
SECOND YEAR
THIRD SEMESTER

COURSE WRITER

Dr. P. Hemavathy
Assistant Professor in Commerce (T)
Institute of Distance Education
University of Madras,
Chennai - 600 005.

EDITING

Dr. R. Panchalan
Professor in Commerce
Institute of Distance Education
University of Madras,
Chennai - 600 005.

© UNIVERSITY OF MADRAS, CHENNAI 600 005.

(ii)
 [Link]., DEGREE COURSE

SECOND YEAR

THIRD SEMESTER

Paper - VI

BUSINESS COMMUNICATION

SYLLABUS

UNIT I

Analysis of business letter - Basic Principles in drafting - Appearance and layout - Letter
style.

UNIT II

Various types of business letters - letter of enquiry - quotations - Offers - Orders -

Cancellation - Complaints and Settlement.

UNIT III

Circular - Status enquries - collection Letters - Application for a situation - Letter of

recommendation - Reference Letters.

UNIT IV

Company Correspondance - Correspondance with Shareholders - Debenture holders /

F.D holders, Goverment Depatments, Statutory Bodies - Office staff, customers and Public and
Directors.

UNIT V

Report writing - Format - Report style and language – Report by individuals and committees

- Report on meeting - Speeches writing - Role of computers in Business Correspondence.

(iii)
REFERENCE BOOKS

1. [Link] - Modern Business Correspondence

2. Ramesh And Pattnesh - Effective Business English And Correspondence

3. Bhal And Nagamiah - Modern Business Correspondence

4. Koralahalli - Bussiness Correspondence

(iv)
 [Link]., DEGREE COURSE

SECOND YEAR

THIRD SEMESTER

Paper - VI

BUSINESS COMMUNICATION
SCHEME OF LESSONS

[Link]. Title Page

1. Business Letters 001

2. Letter of Enquires and Offer, Quotations and Status Inquiry 028

3. Orders, Execution and Cancellation 051

4. Complaint, Adjustments and Settlement of Accounts 071

5. Circular Letters 086

6. Collection Letters 102

7. Letters of Applications, Reference Letters and

Letter of Recommendations 119

8. Company Correspondence 137

9. Company Correspondence -
Communication with Debenture Holders 167

10. Company Correspondence -

Communication with Fixed Deposit Holders 178

11. Correspondence with Government Department 186

12. Report Writing 202

13. Reports by Individuals and Committees 230

14. Speeches 243

15. Role of Computers in Business Correspondence 273

(v)
 1

UNIT - 1
BUSINESS LETTERS

Learning Objectives

After completing this unit, you must be able to:

 Outline the essentials of business letters

 Categories the forms of business letters

 List out the structure of Business Letters

 Identify the points that to be remembered while drafting the business letter

 Discuss in detail about different letter styles

Structure
1.1 Introduction

1.2 Essentials of Effective Business Letters

1.3 Functions of a Business Letter

1.4 Kinds of Business Letters

1.5 Layout of Business Letter

1.6 Mechanical Structure of the Business Letter

1.7 Points to be Remembered while Drafting the Business Letter

1.8 Letter Styles

1.9 Summary

1.10 Key Words

1.11 Review Questions

1.12 Answers to Check Your Progress

2

1.1 Introduction

Every Businessman needs a business letter to maintain a relationship and communication

with the suppliers, Government and customers. In his regular work, a businessman has to
exchange information through writing a letter in different business. Correspondence means
communication through letter. Such Communication may be between friends or between
individual, firms or companies on matters of trade and commerce. Commercial correspondence
refers to all kinds of letters used for different business transactions. The situation was different
in olden days when business was conducted in small scale as sole proprietor and partnership.
As they knew their customers personally there was no necessity for commercial correspondence.
Now due to globalization and liberalization there is tremendous development in trade and
commerce which led to a corresponding increase in communication through letters

Modern Commercial Correspondence

The business operations without proper communication through effective letters, will
cease and give a way to economic stagnation in the long run. Business Letters play a vital role
for the success of business houses. It helps to communicate with the supplier and customer
regarding the purchase and sale of goods, to obtain credit from banks and financial institutions,
to collect debts from debtors, maintain goodwill with the customers and to clear any
misunderstandings.

Reference: It serves as a record and help for the day to day operations of the business.
Filing methods adopted to preserve the communications

Legal evidence: In case of misunderstanding and disputes the letter serves as a evidence

Sales Promotion: Sales letters impress the public and customers and create demand
for the product, thereby increase the sales for the product.

Promotes Goodwill: The reputation of the concern depends upon the quality of letters
being sent out. This brings a lasting success to a business house.

Letter writing is an art. The ability to write a good letter helps to maintain inter personal
relationship which leads to the promotion of business. Letters are considered as a valuable
 3

instrument for the businessman. Hence it is considered as the life blood of the modern
commercial world. The unpleasant task of refusing a request can be accomplished through
letters. Unnecessary misunderstanding can be avoided when agreements are confirmed through
letters. The importance of a good business letter cannot be over emphasized is the back bone
of a successful business concern.

1.2 Essentials of Effective Business Letters

A Business letter is an important form of written communication. Given below are

considered as the essentials of business letters:

Promptness: As a rule, respond to the letter of the day it is received. If you need time
acknowledge the letter and indicate how soon you will be sending a specific reply

Knowledge of the subject: This includes the knowledge of the past correspondence if
any of the requirements to the sender of the letter and the knowledge of the firm’s policies.
Accuracy and Appropriateness: Vary the tone and language of your letter according to the
need of the occasion as well as the psychology of the reader

Accuracy, Completeness and Clarity: All facts, figures , statements, quotations etc
must be accurately mentioned. It is a good practice to verify them before including them in your
letter. If you are replying to an enquiry, make sure that you have touched all the points. If it is a
message, it should be absolutely clear and unambiguous so that it accomplishes the purposes
for which it is being sent

Concise: The letter should not be very lengthy with irrelevant details

Positive and Pleasant approach: Avoid nos and sorry. Even “no”can be written as
“another time “and sorry can be reworded as unwelcome words like sorry and must not be
avoided.

Courtesy: The letter should be written in a polite way to express our gratitude.
4

Tact: A quality that goes hand in hand with courtesy. Very important in handling the
complaints and adjustments and letters seeking credit. The essence of tactfulness lies in retaining
the goodwill of someone even through his request has been turned down.

Persuasion: It means wining people to your point of view not by coercing them but by
making positive suggestions and explaining what you say is to their advantage

Salesmanship: Every letter going from your desk should be the ambassador of your
firm. It must carry a message. It must enhance your reputation

The ÿouatitude”:Write your letter constantly keeping before you the reader’s point of
view.

Language of the Letter: It must be written in a familiar language. Business terms like
FOB cannot be avoided.

1.3 Functions of a Business Letter

As stated before business letter helps to promote and maintain business without
complication. It gives correct information and maintains contact with the organization. Business
people have to communicate with the suppliers, debtors, creditors, customers and with other
concerned parties to exchange information. Business letters are basically used to communicate
with the above parties.

According to Ricks and Gow, “The primary purposes of business letters are to inform,
instruct, request, inquire, remit, order, advice, correct and to question.”

The functions of business letters are:

Promotional Function: All business organizations wish to grow in size and provide
better service to their customers. This is possible only when customers are well informed
through letters. Business letters especially circular letters used to create demand for new
products. Circular letters can communicate many people in the same time.

Informational Function: Business is complex in nature. They keep changing policies.

All correspondence must be filed as it helps them to remind their earlier policies. The basic
 5

purpose of any business letter is to convey information regarding business activities. Information
can be transmitted through business letter to customers, suppliers, debtors, government
authorities, financial institutions, bank and insurance companies and to any other parties related
with the business

Legal Function: It serves as legal documents in quotations and offers. It stands as

evidence when dispute arises. This is one of the specific purposes of business letter. To conclude,
in completed transactions business letters are frequently used. A business concern not only
sends messages but also receive information from the outside. To run the business any firm
need different types of information from outside. Through business letters firms can inquire
regarding necessary matters.

Goodwill Function: They build good rapport with their customers which promotes goodwill
among parties transacting business. Another important purpose of business letter is, it helps to
establish mutual relationship with the customers, suppliers and with the other interested parties.
It is a very common purpose for using business letter. Both trading and manufacturing concerns
need to place orders for finished goods or raw-materials to run the business. In the course of
business, disputes and misunderstanding may arise. Business letters play vital role in solving
such misunderstandings.

1.4 Kinds of Business Letters

Business letters were sent via postal mail or courier, although the internet is rapidly
changing the way businesses communicate. There are many standard types of business letters,
and each of them has a specific. The different kinds of business letters are discussed in detail,
below:

Letter of enquiry

It is a routine letter between firms which are engaged in business transactions. It seeks
some information from the receiver such as information on a prospective employee, or a borrower
and his credit standing etc. Buyers need information from manufacturers and sellers about
products, terms of sale and various services. Sellers need information regarding the
creditworthiness of the customer (Status enquiry) or preference of customers.
6

Letter of order

The order should be made in a clear way. It should clearly mention type of goods required,
price, quantity, date of delivery, mode of delivery, mode of packing etc. A defective letter causes
frustrations to both parties. Letter written by a buyer to the seller in reply to his quotations is
called as order letter.

Complaint Letter

Complaint arises when order is vague. The purposes of the complaint letter are to rectify
their problem and not find fault with the seller. A positive action should be taken against complaint
letters. A complaint letter requests some of compensation for defective or damaged merchandise
or for inadequate or delayed services. When you state your complaint, you usually make a
claim or request for some kind of adjustment. All such requests are grouped together here and
labelled as claim letters.

Sales Letters

The sale letter is drafted as part of sales promotion campaign. They have to be persuasive
in nature. Hence, the sales letter must be attractive , kindle , intrest , create desire and promote
action. Sales letter is a powerful medium of advertising. Professionally written, a successful
sales letter can significantly boost your business sales and profits.

Circular Letter

These unsolicited letters are been send to a large number of people. They are usually
drafted for opening new branch, new product introduced, change of address and telephone
number. They can even be e-mailed to their customers. This letter is one which is circulated to
a large number of persons at the same time carrying the same message for all. It is the kind of
announcement

Collection letters

These letters are sent to collect the dues from their customers. Defaulters should be
gently reminded to repay the dues as retention of customer is very essential. The goal of
collection letters is to collect the money without offending the debtor. In fact, the objective is to
 7

collect the money and still do not lose the customer. Until the situation becomes critical, the
letter does not become a stern demand.

Agency Letters

It is the correspondence between the principal and the agent. The application for agency,
appointment of agents, the support received from the principal is conveyed through this letter.

Public relation letter

Now we in a competitive world. To overcome the competition organization should promote

goodwill. These letters are not related to business but have a personal touch in them. These
letters are written to promote the goodwill earned.

Banking Correspondence

This is of special nature as it deals with finance . Banks are also business concerns and
they have to correspond with their clients. Letters have to be carefully written to protect the
interest of the bank and their customers.

Insurance Correspondence

Insurance is a business that covers the risk of loss of life and property from fire, theft or
burglary etc. There is stiff competition in insurance business due to privatisation, insurance
correspondence requires faith, courtesy, transparency in their context.

Import and Export Correspondence

It relates to trading with foreign companies. The foreign environment has to be studied
before framing this letter

Correspondence with government departments

All business concerns have to correspond frequently with various government

departments. The business man must be conversant with the official procedure involved, and
the proper approach required to secure the desired result. They must have a complete knowledge
of laws and regulations before drafting the letter. All correspondence with customs, sales tax,
8

income tax, excise duties authorities, postal and railways come under
this category.

Adjustment Letters

An adjustment letter is normally sent in response to a claim or complaint. If the adjustment

is in the customer’s favour, begin the letter with that new. If not, keep your tone factual and let
the customer know that you understand the complaint.

Letter of Inquiry

Inquiry letters ask a question or elicit information from the recipient. When composing
this type of letter, keep it clear and list exactly what information you need. Be sure to include
your contact information so that it is easy for the reader to respond.

Follow-up Letters

Follow –up letters are usually sent after some type of initial communication. This could
be a sales department thanking a customer for an order, a businessman reviewing the outcome
of a meeting or a job seeker inquiring about the status of his application. In many cases, these
letters are a combination of thank-you note and sales letter.

Letters of Recommendation

Prospective employers often ask job applicants for letters of recommendation before
they hire them. This type of letter is usually from a previous employer or professor, and it
describes the sender’s relationship with and opinion of the job seeker.

Acknowledgement Letters

Acknowledgement letters act as simple receipts. Businesses send them to let others
know that they have received a prior communication, but action may or may not have taken
place.

1.5 Layout of Business letter

How to write to effective business letters? Alxender pope, in his essay on criticism says:
True ease in writing comes from art, not chance, as those move easiest who have learned to
 9

dance. This art of essay writing is not difficult to acquire . Within adequate knowledge of the
language and constant reading and writing, one can prepare a base for drafting effective business
letters. We should write naturally, as we would have talked to the reader about the subject
matter of the letter if we had the opportunity to talk to him in person. We can do several things
to ensure that our letters is the best that we can write. The best thing to test the appropriateness
and effectiveness of our letter is to put ourselves in the position of the recipient of the letter and
think how we would react to out of your own letter. Business letters are not much different from
personal letters but since a business letter is written to achieve a definite purpose and often
given rise to legal obligations, we have to be more accurate, clear, correct, precise, courteous
and reasonable in our approach.

The lay out or structure of business letter refers to the proper arrangement of the different
element of a business letter. The appearance of business letter is as important as the contents.
Like a salesman, the letter should create a good impression on the minds of the reader. The
structure of a business letter is different from letters drafted to a friends and relatives. The
reader must be impressed at the glance of the business letter. The following should be kept in
mind regarding the stationery while drafting the business letter

Paper: Letters should be typed in quality bond paper as it is durable in nature. The letter
typed in bond papers gives a graceful look.

Size: The standard size 11" X 8 ½” is preferable. The bigger looks awkward and the
smaller size looks cheaper.

Colour: The business letter are normally written on white paper or light coloured paper.
When letters are sent in particular colour paper, It becomes the symbol of our organisation.
Good quality carbon paper must be used for making copies. Colour papers also have a
psychological effect. If the correspond with the logo or trademarks it helps to increase the
image of the organisation. Only light coloured papers should be preferred.

Envelopes

Offices usually have envelopes of several sizes for use, according to the size and quantity
of the material to be dispatched. The company’s name and address are printed at the bottom
on the left; some companies have it printed on the flap of the envelope.
10

Letter Heads: The appearance and quality of the letterhead makes an important first
impression on the receiver of the letter. Good quality, white paper should be used for letter
stationery. The following are the information which should be neatly printed in the letter: Name
of the firm, address, fax number, E-mail address, Website address, phone number, mobile
number. Letterhead can be designed in consultation with a commercial artist or a computer
graphics firm.

Physical appearance: The appearance of the letter is as important as its contents. It

deals with typing, margins, Folding

Typing: The typing must be neat, without cancellations or corrections. There should be
equal spacing between words and between lines, and double spacing between paragraphs
and different parts of the letter. The letter should be placed carefully in the centre of the page,
leaving equal margins on the sides and at the bottom.

Margins: Sufficient space should be left at the top and bottom .In short, letters with
double spacing will look more pleasing. Double space between paragraphs makes it attractive.

Folding: Folding of the letter must be neat. It makes a poor impression if it is badly
folded. The size of the paper, envelope , number of enclosures has to be considered while
folding the letters. The letter is folded in such a way that the inside address falls below the
tissue paper and this saves them from typing the address on the envelope. This is called as
window envelope.

Tips for writing business letters

Previously we had discussed about the types of business letter and its functions and
layout of business letter. Now let us discuss about few tips which will help in writing these
letters.

Start from the end- Decide what the result of your letter ought to be. List things you
should like to say and review them. Remove those not supporting the main idea. Good letters
have a strong sense of purpose.
 11

Get to the point early- Don’t delay . You should state your main cause in the first
paragraph.

Visualize your reader- Put yourself in your reader’s place. If the letter came to you, how
would you respond? Be pleasant, try to turn negative statements into positive ones.

Say it plainly- Phrases like “in compliance with your request” and “enclosure herewith
can be used while writing the letter. Write you talk naturally

Be professional- The most well written letters can’t survive bad presentation. Use a
clean, logical format for your letter.

Be Positive- Never write in Anger, Anger will evaporate, a letter won’t . Decide a way to
handle problems in an upbeat manner

Be human- Your letter should be read like a conversation. Address your reader by the
Dear Mrs. Anu”.

Use active verbs- Passive voice is weak and confusing. A decision has been reached by
the committee is inferior to “The committee has reached a decision”.

1.6 Mechanical Structure of the Business Letter

“The mechanical structure of a letter constitutes the different parts of a letter that should
have their customary place in it. The arrangement of the different parts of a business letter is
fixed by custom and makes a world of difference in the impression it conveys. A letter being
sent in an inappropriate form is not considered as good for effecive business communication.
Unless business letter follows the accepted form correctly, the reputation of the company will
be affected. The business letter is divided into the following parts namely Letter head or heading,
date, Reference Number, Inside Address, Attention line, Subject Line, Salutation, Body of the
letter, Signature, Subject and Reference, Complimentary closure, Enclosures.
12

Heading or Letter head

A letter should announce its sender. Business letters therefore are typed on letterheads.
Most business organisation use printed letterheads for correspondence . The letterheads
contains the name, the address, the telephone number and the email address . Unless it is
clear from the name of the organisation itself, the kind of business carried on is sometimes
indicated. It is usual to provide the following information in the heading includes The firm
name, The nature of the firm business, telephone number, Fax number, Reference, The firm
address, symbols and trademarks and e-mail address, the date. Many firms prefer to put much
of the information at the bottom of the letterhead where we may call it letter foot. But the firm’s
name should always be at the top. The heading contains information relating to the firm. The
name and address of the firm is very important and all other information are considered
secondary. The size of the firm may vary firm to firm. As far as possible quality paper should be
used.

Eg. Ram Electricals company Ltd

145, RR Mills Road
Anna Nagar, Chennai 600 040
Telephone: 044- 26425217
E-Mail Id: rama @ [Link]
Branches: Parrys, Adyar, Chepauk and T Nagar

Date

When using a letterhead, you must always supply a dateline. The line on which date is
typed depends on the length of the letter. the date on every letter is very important. It enables
quick reference in figure and helps in prompt action and orderly filing. The date consists of day,
month and year. It is written below the address of the heading, leaving some or ending closed
to the right margin depending on the style adopted. It is essential part of the business letter as
it serves the purpose of identification. The date consists of month and year. It is usually written
on top right hand corner. The date can written in any of the following ways:

4th November 2018 or Dated 14 th November , 2018 or Nov 14, 2018

 13

Reference

The reference is printed either below the date line (If the date is written close to the left
margin) or on the same line in which the date is written near the right margin. In both cases, the
reference in written close to the left margin. The reference serves to identify either the department
and its section from which the correspondence is to be found. The purposes of the reference is
to enable replies to be linked with the previous correspondence and also to send replies to
these letters to the proper official or department. Stating the “reference” helps quick and easy
future reference. Therefore, address are requested to quote this reference in their replies. The
usual forms of giving the reference are: Reference number appears on the left on level with the
date. The words Ref no. May be printed on the letterhead; some companies have both, Our ref
no. And Your Ref. No. Printed on the letterhead, and give both numbers in their letters.

Inside Address: The person or firm to whom you send a letter is called addressee. The
name and the address constitute the inside address. The first line of the inside address contains
the name or company to whom you are writing. Short Social or professional titles (Mr, Mrs, Dr)
can be used. Inside address is the name and address of the receiver. It is typed in block form.
Only a very few old fashioned companies use the indented form. There are two forms mentioned
namely block and Indented form

Block form – Naveen Publishing House

12, Millers Road
Kilpauk
Chennai 600 010

Indented Form Naveen Publishing House,

12, Millers Road,
Kilpauk,
Chennai 600 010

When the letter is written to an individual, the name of the person should be preceded by
the title of courtesy as Mr, Mrs, Miss Etc.
14

Addressing by designation

When a particular person is addressed by his designation, “Mr” and “Messers”(in case of
a limited company) is not used:

The Personnel Manager

Larsen and Toubro Ltd
The Secretary
Dharam Chand Trust

Attention

When you write to affirm but wish to direct your attention to a specific person in the firm,
you can use an attention line. In letter, the attention line is typed two spaces below the inside
address and usually begins at the left margin. When a letter is addresses to a company and if
it has to reach a particular department then an attention line is to be typed on the line below the
inside address.

The secretary
Britannia Co Ltd
Padi Chennai
Attention to Sales Manager

Salutation

It is also known as greeting or is complementary greeting with which the writer starts his
letter. It may or may not end with a comma depending upon the style adopted. This depends on
the relation in which you stand to the person to whom you are writing. When we write to our
family members or friend it will be: My dear Mummy or My dear Anu

If it is a business letter: My Dear Ravi (or) Dear Raja

My Dear Mr. Ravi (Or) Dear Mr. Raja

Dear Sir or Dear Customer can be used. While addressing the government officials,
editors of news paper the following salutations used:
 15

Sir, Madam is used in official correspondence with officials. The salutations is at the left
hand side below the inside address. The salutations can end with ( but people use comma (,)

Subject and Reference

Subject line is inserted in the letter to give an idea to the reader what the letter is about.
It works as a great aid to a busy reader. Any office/writers use subject lines to enable the
reader to quickly identify the subject of the correspondence. It tells what the correspondence is
about. In addition, it contains any specific identifying material that is supposed to be helpful-
date of previous correspondence, invoice number, order number or the central point of the
letter. It is placed just below the line of salutation. It usually begins at the left margin , although
it may be placed in the centre or indented. Under subject, the main theme of the letter is written
just below the salutation. The reader can understand the theme of the letter at a glance by
looking at the subject. Reference relates to the reference number or date of the previous letter
which is mentioned below the subject. These two must be written separately one below the
other clearly to attract the attention of the reader.

Dear Sir,

Sub: Application for the post of the Sales Manager

Ref: Your advertisement in Hindu dated 25th August

Body of the letter

This will contain number of paragraphs each paragraphs will be dealing with one point
only. Try to avoid technical jargon. The main purpose of the letter is to convey a message and
the main purpose of the message is to produce a suitable response in the reader. This is done
mainly through the body of the letter. It is therefore, important to organize and arrange the
material very carefully. In the first paragraph, reference to any correspondence which has
already taken place should be given and in the second the main message should be stated.
The paragraphs that follow should contain further details, if necessary. In the closing paragraph,
you must state clearly what action you expect the reader to take, or you may end the letter
indicating your expectations, wishes or intentions. The paragraphs are not given any headings
16

unless the letter is very long and deals with several important points. It is that part of the letter
which carries message or information to be communicated and it is the most important part. It
consists of three parts opening paragraph, Main paragraph and closing paragraph. In the opening
paragraph the readers attention should be attracted so as to go ahead with interest. The main
paragraph contains the subject matter of the letter. The content should be written accurately,
clearly about what he wants to say. The closing paragraphs must be logical, natural, friendly
and forceful. The entire body of the letter must be positive with a friendly approach.

Complimentary closure

The complimentary closing which is the friendly ending of the letter. If the salutation does
not contain the name of their recipient, formal close is “Yours faithfully”. If the salutation names
the recipient the formal close is “Yours Sincerely”. Yours begin with the capital Letter “Y”, but
faithfully or sincerely begin with small letters. The complimentary close is written two lines
spaces below the last line of the text of the letter; it is placed on the right and is followed by a
comma. In full block style and NOMA style it is placed at the left margin and has no comma. It
is a polite way of ending a letter. Salutation and complimentary closure should correspond to
each other. It is written on the right hand which is above the signature. This is merely a convention.

E.g. Salutation Complementary closure

Dear Sir Yours Faithfully

Signature

The reader identifies the writer from the signature. The signature therefore must contain
your pen written name and your type written name. The signature is the signed name of the
writer. It is placed below the complimentary close. The name of the writer is generally typed
four spaces below the closing line providing enough space for the signature. It is a distinguishing
part and must be hand written. It is below the complementary close on the right hand side. The
official seal of the firm must be affixed. It normally contains the writers name, status, department,
firm name etc. The signature must be legible.

For a partnership firm, any one of the partners may sign either by writing in the ink , the
name of the firm if by putting his signature below the typed name of the firm.
 17

The firm however, delegate the authority of signing letter to an officer who will be executing
a legal instrument called the power of the attorney in his favour such as the employee will put
pro. Before the name of the firm and sign it below.

In case of registered or incorporated companies, the company responsibility line may or

may not be there. Important officers of a company, such as the managing director, secretary,
financial controller and chief engineer have the authority to sign letters on behalf of the company.
The authority may be the result of the execution of the power of attorney in favour or as allowed
by custom. Legal authority as indicated as in the case of partnership firms by adding per pro
before the name of the company. Since the name of the company is given in the letterhead. It
need not be repeated in the signature. Women should indicate their martial status while signing.

Yours faithfully,

For Ram Industries Limited

S. Ram Jai (Signature)
(Manager)

Identification Marks

These marks are put in the left margin to identify the typist of the letter, one or two spaces
below the signature. Usually, the initials of the office who dictated the letter are put first. For
example, if the letter has been dictated by Sri. Rakesh and typed by Kum. Neelam Garg, the
identification marks may be put in either of the following ways:

TRM/LG

Reference Section

The reference section includes the enclosures, names of the parties to receive copies,
the type of delivery service to be used, and initials of the persons who dictated and typed the
letter. If anything to be attached to a letter, the fact will be indicated at the left hand bottom.
When cheques, draft, railway receipt, price list, catalogues, invoices or documents are been
sent, it will be shown in the enclosure to draw the attention of the dispatching section and the
reader. The short form of enclosures is Encl of Encls.
18

Eg. Encls: 1. Draft

2. Invoice

3. Document

Enclosures: If you enclose some additional material with the letter put Enclosures”,
Encase appropriate, two lines below the last entry. Give the number of the enclosed documents
and if the number is not very large, give description of the enclosures,

Postscript: A post script is a message added at the end of a letter. It is used either to
stress an important point briefly. Reminders are expressed effectively in a Postscript. Initials
are typed either as P.S, below the reference initials or enclosure notation. It means any additions
written afterwards. Writing postscripts indicates the writer has not planned well before drafting
the letter. From the view point of a good business letter, it is a bad practice to write the postscript
and it must be avoided.

Courtesy Copy distribution: If you send a copy of your letter to one or more persons
other than the addressee ,note such copies at the end of your letter. The carbon copy notation
should be final part of your letter. Sometimes copies of letters have to be sending to some
people other than the addressee. The words copies to CC will be typed on the left hand side
below the enclosures. The full names and addresses of the person to whom copies are sent
should be typed.

1.7 Points to be Remembered while Drafting a

Good Business Letter
 Convey a concrete data

 Avoid confusion

 Earn goodwill from readers

 Clarity and sincerity should be kept in mind

 Influence the reader

 Give importance to the addressee

 19

 Conclude a transaction favourably

 Be tactful and avoid threatening

 Do not insult, irritate or offend the reader

 Beating the bush to be avoided

1.8 Letter Styles

The overall arrangements of different parts of the letter are known as the layout of business
letter. The style of arrangements has been changing from time to time. It is the option of the
business firms to choose any style to follow. Layout means the design in which the different
parts of the letter is placed on the letterhead. The parts are placed in same order from top to
bottom in all forms or styles; the variation is in the indention and the paragraph styles

The various forms of letters styles are Fully indented letter style, Fully blocked style,
semi indented letter style, modified block letter style, Hanging indented letter style, Semi blocked
letter style and NOMA Simplified letter style.

Fully Indented Letter style : This is the oldest style and is now outdated. The form is
more suited when the letter is handwritten. While writing address comma is used and ends
with full stop. The first line of each Para begins away from the margins. The complimentary
close is at the centre of the typing line. In it each new element is indented two or four spaces.
Generally, closed punctuation is used in this style. It requires more time to type, but those who
advocate this style say that the pleasing form it presents more than compensates for the extra
energy spend

Fully Blocked Letter Style: This is more commonly used in United States. Under this
method the different parts of the letter begins from the left hand margin. No comma used in
inside address and for salutation. The conservatives do not prefer this style as they feel the
letter appears to be crowded. A clear disadvantage of this form is that, after the letter has been
filed, the date and the signature cannot be seen unless the file is fully opened. The date of a
letter is an important item and is often referred to for many purposes. Quick reference to date
and to signature is not possible in this form. In this style, the date line the complimentary close
and the signature are aligned with the right margin; all other parts expect the letterhead are set
20

flush left. Divisions between the parts and between the paragraphs of the body of the letter are
indicated by double spacing.

Complete block Style

All parts of the letter, except the printed letter head are aligned with the left margin, a
letter in this form saves more time because indentation is not required for any part, but some
correspondents do not like it because it appears unbalanced and heavy on the left side

Semi block style letter –This is like the block style except that the paragraphs of the
letter are indented. Those who use it say that if it easier to read paragraphs which begin with an
indented. Those who use it say that it is easier to read paragraphs which begin with an intended
line become one which is used to see this style in print. This style is often termed as the
modified block style letter. This is a modification of block style letter. You must have noted that
in a block style letter, every Para or line be it inside address, or body of the letter or closing of
the letter, starts from the same left margin giving a symmetrical look to the letter.

Modified Clock Form

This style is a modification of the full block form. It eliminates the shortcomings of the full
block style by keeping the date and the complimentary close on the right in the usual position.
The inside address is in the block form. The salutation and the complimentary closure are
followed by a comma.

Semi-Indented Form

This form is also called as Semi block Form. It has the inside address in block form but
the beginning of every paragraph is indented. The date and the complimentary close are on
the right side. The salutation and the complimentary close are followed by a comma as in the
traditional style

Hanging Indented Letter style

This style is like the block style except that the first line of each paragraph is aligned with
the left margin whereas all other lines in each paragraph are indented four or five spaces. It
 21

appearance in unusual and may perhaps catch attention quickly but this fact could be a
disadvantageous as well. It may distract the reader by focusing his attention on the form rather
than the message of the letter. This form of layout is unusual one. The date is in normal
position. The complementary closure at the centre and inside the address in block form. This
type of layout is of waste of time for the typist. This style is adopted for sales letters, Brouchers
and other documents in which striking appearance is useful. The opening line of every paragraph
“hangs out” and can be used for highlighting important points. Since this form involves many
indentations the typing consumes a lot more time.

NOMA Simplified Letter style

This is the most recent experiment in layout style. It is recommended by National Office
Management Association of America. It has been accepted in the UK by the Institute of Office
Management. It has most of the features of the Full block form. All Lines begin at the left
margin and the inside address is in block form. It has no salutation or complimentary closures.
The subjects line is in capitals three lines below the inside address. Some people feel that this
style saves time and sensibly omits meaningless salutation and close; but most people feel
that this omission makes it impersonal, distant and lacking in feeling.

Specimen copy of Business letter layout

Business Letter Layout Example

1707, Ramunjam Lane

Varanasi U.P. 12th June 2019
Mr. Sanjeev Goswamy
Managing Director
Guru Enterprises Private Limited Varansai

Dear Mr. Saneev

I am writing in response to your classified in the India – Bulletin for Assistant Director of
Materials Management. Based on my experience and containing education, I believe that I am
qualified to fill this postion.
22

For the past four years, I have been employed in the materials divisions with two different
manufacturing companies Google and Saint Gobain. My experience there has ranged from
controlling, buying, analysing, to planning materials.

I would be proud to be a part of your team. I hope to get a chance to discuss my qualification
and goals with you.

Sincerely Yours

Amit Shah

Encl: Resume

Specimen of Indented Style

XXX Enterprises

Phone:............ .............Address....

Fax:................. .............Writer......

........Designation........

.........and Address of the .......

..........recipient........

3rd September 2018

Dear Sir

I am glad to state you that ...........................................................................................

......................................................................................................................................................

We think you are capable of handling

............................................................................................................................................................................................................................................................................................................

Yours faithfully
 23

.........Signature.................

Cc: Copy to another party.

Specimen of Semi-Indented Style:

XXX Enterprises

Designation of the Writer

Phone:............

Fax:................. 3rd September 2018

Address of the .......

..........recipient.................

Dear Sir

SUBJECT

I am glad to state you that ...........................................................................................

......................................................................................................................................................

We think you are capable of handling

............................................................................................................................................................................................................................................................................................................

Yours faithfully

.........Signature.................

Cc: Copy to another party.

Specimen of Hanging Paragraph Layout

XXX Enterprises

Phone:............ .............Address....
24

Fax:................. .............Writer......

........Designation........ 3rd September 2018

.........and Address of the .......

..........recipient........

Dear Sir

Sub: Subject..............................

I am glad to state you that ...........................................................................................

......................................................................................................................................................

We think you are capable of handling

............................................................................................................................................................................................................................................................................................................

Yours faithfully

.........Signature.................

Cc: Copy to another party.

Specimen of Modified-Block Layout

XXX Enterprises

Phone:............ .............Address....

Fax:................. .............Writer......

........Designation........ 3rd September 2018

.........and Address of the .......

..........recipient........

Dear Sir
 25

Sub: Subject..............................

I am glad to state you that...........................................................................................

......................................................................................................................................................

We think you are capable of handling

............................................................................................................................................................................................................................................................................................................

Yours faithfully

.........Signature.................

Cc: Copy to another party.

Specimen of NOMA Layout

XXX Enterprises

Fax

Address of the Writer

3rd September 2018.

Recipient

Address

ATTENTION LINE

I am glad to state you that...........................................................................................

......................................................................................................................................................

We think you are capable of handling

............................................................................................................................................................................................................................................................................................................

Yours faithfully
26

.........Signature.................

NAME

Cc: Copy to another party.

Check Your Progress

1. ——————————— is a routine letter between firms which are engaged in business
transactions.

2. Letter written by a buyer to the seller in reply to his quotations is called as ——————
——

3. The ———————must be attractive , kindle , intrest , create desire and promote action.

4. A ————————requests some of compensation for defective or damaged

merchandise or for inadequate or delayed services.

5. ————————— is the most recent experiment in layout style.

6. ———————— style is a modification of the full block form

7. ——————is more commonly used in United States

8. A —————is a message added at the end of a letter.

9. The reader identifies the writer from the ———————

10. —————————line is inserted in the letter to give an idea to the reader what the
letter is about.

1.9 Summary

In this unit we have discussed about the meaning of business letter, different types of
business letters such as sales letters, order letters, complaint letters, adjustment letters, inquiry
letters, follow-up letters, letters of recommendation, acknowledgement letters, cover letters,
and letters of registration, apart from this, it helps to understand the importance of business
letters, functions of a business letter, and the layout of the business letters. The layout of the
business letters helps us to understand the different lay outs of business letters and it suits for
different types of business letters based on the different situations.
 27

1.10 Key Words

Layout, Etiquette, Inquiry, Collection letters

1.11 Review Questions

1. What do you mean by Layout?

2. List out the different types of business letters and explain in detail.

3. Explain the functions of a business letter.

4. Describe the different styles adopted in business letter.

5. Bring out the layout of a business letter

6. You have seen an advertisement in The Hindu inviting applications for the part time teaching
job. Write a letter to the advertiser suggesting yourself for the job. Write in full block style.
Presume necessary details

1.12 Answers to Check Your Progress

1. Letter of Enquiry

2. Order letter

3. Sales letters

4. Complaint letters

5. NOMA Simplified letter style.

6. Modified Clock Form

7. Fully Blocked Letter Style

8. Post script

9. Signature

10. Subject
28

UNIT 2
LETTER OF ENQUIRES AND OFFER,
QUOTATIONS AND STATUS INQUIRY

Learning Objectives
After reading this unit, you must be able to:

 Outline the types of enquires

 Discuss the features of an enquiry letter

 Explain offer and quotations

Structure
2.1 Introduction

2.2 Types of Enquiries

2.3 Features of an Enquiry Letter

2.4 Replies

2.5 Offers and Quotations

2.6 Terms used in Offer and Quotations

2.7 Specimen Letters

2.8 Status Enquiry

2.9 Summary

2.10 Key Words

2.11 Review Questions

2.1 Introduction

When the purchaser wishes to get information about the quantity, price, terms of sales
and availability etc. he writes a letter of enquiry to the seller. An enquiry letter is written by a
potential customer and is preliminary exercise that may lead to a contract. Inquiry letter is
 29

written by the Employer or Management group of a section of a large corporate firm inquiring
certain issues, the reason behind it. This kind of letters is written in order to clear up a dispute.
The person who is inquired need to revert back to the certain clarification asked for. The
reason behind writing an inquiry letter can be anything like an inquiry for a product which is
new in the market, an inquiry for a dispute in the organization, inquiry for a job position in an
organization to check the variety of product they are having and the price list of the products for
future business purposes, an enquiry letter can be written for an advertisement like if an
organization is in a need of an advertisement then what are their needs for the advertisement.

An enquiry letter is a formal way of requesting to get information about anything from
anyone formally. When an inquiry letter is written to an organization or a person he has to give
a reply for the letter by giving the correct information for the request of inquiry.

2.2 Types of Enquires

Solicited Enquiry: If enquiry is made in response to seller’s advertisement and publicity

it is called as solicited enquiry. They enquire for a brochure, bulletin and catalogue or for any
clarification. When the intending buyer of goods makes an enquiry in response to some
advertisement or communication from the seller or supplier makes an inquiry in response to
some tender or other communication of the buyer, it is termed as solicited inquiry.

Unsolicited enquiry: This enquiry is made at the buyer’s own initiative. It should be
written in such a way that he gets the required response. The letter should be clear and complete.
Questionnaire formats can also adopted if the enquiry is very lengthy. When a buyer or a seller
makes an enquiry on his own without receiving any communication from the person to whom
he is asking the information.

Enquiry for some favour: When enquiry is made about some favourable terms or the
special price it is called enquiry for favour. A research scholar engaged in the market research
may send a letter of enquiry with a questionnaire to a firm. He should clearly mention the
objectives.

Routine enquiry: This is made by regular customer in the usual course of business
30

2.3 Features of an Enquiry Letter

The content should be clear

It should also be complete

The buyer should clearly state the service that he expects

State clearly quantity, price list, catalogue and time of supply, credit, packing terms and
mode of delivery.

Points to be considered while drafting the letter of inquiry

The enquiry letter must take care of the following information:

1. When you are making an unsolicited enquiry, you are supposed to give your introduction
in the beginning of the letter, along with the purpose of making enquiry- whether goods or
services required to be purchased

2. Ask for the terms and conditions of payment and delivery etc.

3. Close the letter with an expression of hope that the information requested in the letter
would be supplied at the earliest. The urgency of early information should be stressed
upon.

4. Ask for the details of goods/ services or other requirements. If an enquiry is for goods and
services the quality, quantity, size, brand, make etc. In case of the samples patterns,
pricelist are required mention them specifically.

5. Care has to be taken when you are making a solicited enquiry, you are to give reference
to the source from where you have picked up the message

2.4 Replies

Enquiries must be replied promptly. A prompt reply creates a good impression over the
seller. While sending reply price list, quotation, catalogue has to be enclosed with the letter.
Clear, correct and accurate information must be conveyed in a polite way and must also express
their gratitude for the enquiry made. The letter must replace salesman. It must convince the
customers and create interest, desire to buy the products.
 31

2.5 Offer and Quotations

An offer is voluntary and is sent to the prospective customers. It resembles like the
letters and written with the intention to boost the sales. An offer is a kind of advertisement
made for the sale of the goods. It must be persuasive. It must be drafted tactfully. A quotation
is a specific offer for sale. It is made in response to an enquiry from a particular person. A
quotation includes prices of the products, terms of the delivery and terms of payment etc. Firm
offer is an offer in which the seller accepts the order as the conditions specified by the buyer.
Offers are sent to potential buyers. Sometimes an offer is made in reply to a customer’s enquiry
sometimes a seller may make an offer to build up business and make new customers. Quotation
letter is the most common and used letter in a business organization. So, detail discussion
about quotation letter with quotation letter definition and quotation letter sample/ quotation
letter format/ quotation letter template are given below.

Meaning

A quotation is a specific offer for sale. It is sent in response to an inquiry from a particular
person or business house. Thus it is a reply message to an inquiry from a potential buyer. A
quotation includes details about the prices of specific goods selected, terms of payment and
conditions of delivery while writing such letter, the seller should clearly state everything as
inquired by the buyer. The letter must be written to the point with conciseness and complete
tone. A seller must have the intention to create goodwill through such letter which will establish
a business relationship.

The quotation may contain the following points:

 Details about quality of goods offered for sale.

 Details about quantity of goods offered for sale.

 Type of quotation

 Sale price per unit of the commodity

 Term of payment like Cash or Credit, trade discount, cash discount and other allowances
if any.
32

 Time, mode and place of delivery.

 Details of duties, Octroi, etc., payable

 Details of packing, labelling, insurance, etc.

 Net price payable.

 E and O.E (Errors and Omissions-Expected)

It is important for a business organisation to invite quotations from several sellers before
placing an order. This is done to find out the cheapest and best source of supply of goods
required. A great care is necessary in drafting such letter so that right seller can be located as
quickly as possible. The inviting quotations letters should include following points:

 Describe the need clearly and precisely. Give detailed specifications such as the shape,
size, quality, make etc. Of the goods you require. For example if you need to buy inverters,
give the exact numbers, watts hours, size, guarantee period, shape, make and quality.

 Request the seller to quote his prices and terms of payment.

 Ask him for a sample, if necessary. Sometimes the buyer may already be possessing the
sample and in Inviting Quotations, he can specify that the sample can be seen from his
office before quoting rates. In case, he does not have the sample, he can ask for a
sample if required.

 Give an idea of the quantity you intend to buy.

 Indicate the time by which you would like the goods to be supplied. This will help the
seller to determine whether during the periods available he will be able to meet your
demand or not.

 Ask what accessories and spares, if any would be supplied and how much they cost.

 If the goods you are ordering need installation, ask the seller the cost of doing so and
also the repair facilities offered by him. For example computers are required to be installed
by expert technical persons. In such cases, ask the supplier as to how much he will
charge for the same and whether or not there will be repair charges.
 33

 As the processing of a purchase proposal takes some time, ask the seller to indicate the
period for which his quotations will be valid.

Independently ask for tax components. In addition to the basic price of the good, there
will be few tax namely GST etc., which may be paid by the buyers.

Types of Quotations
Following are the main kinds or types of quotations;

1. Loco Price Quotation: Loco means ‘On the Spot’. Therefore, the loco price refers to the
cost of goods at the factory or godown of the seller. Once the goods are out of the sellers’
factory or warehouse, all the expenses for carrying the goods from the seller’s warehouse
to the buyer’s place to be borne by the buyer. This is the lowest price quotation.

2. Station Price Quotation: Under this quotation, seller’s responsibility is to send the goods
to the nearest railway station from his warehouse. It includes the cost of carriage of
goods to the station. Since he delivers the goods upto the station, he charges a lesser
higher price. All further expenses on goods such as freight, insurance, etc., have to be
borne by the buyer.

3. Free On Rail (FOR) Price Quotation: Free on Rail (FOR) price quotation covers the
expenses of carrying the goods to the railway station nearest to seller plus the loading
expenses, freight and unloading expenses are to be borne by the buyer.

FOR Price Quotation = Station Price Quotation + Loading Charges

4. Cost and Freight (C & F) Price Quotation:Cost and Freight (C & F) price quotation
includes the cost of the goods and all the expenses like carriage to the seller’s nearest
station, dock and loading charges and freight. Expenses like insurance, unloading and
cartage to the buyer’s place are to be borne by the buyer.

C & F Price Quotation = FOR Price Quotation + Railway Freight

5. Cost Insurance and Freight (CIF) Price Quotation: There is a risk involved in transporting
goods and this risk is covered by insurance. Generally, the buyer pays insurance charges
but if CIF quotation is mentioned then the seller pays for the insurance charges along with
other previous mentioned prices. So, the price includes cost of the goods plus carriage
upto seller’s nearest station, loading, freight and insurance charges.
34

CIF Price Quotation = C & F Price Quotation + Insurance.

6. Franco Price Quotation: Franco price quotation is the highest price quotation. In spite of
being the highest quotation, buyers prefer this quotation because under this price, the
goods are delivered to the buyers at their door-step. The buyer is relieved from the tension
of transporting goods from the seller’s warehouse to his own ware house.

Franco Price Quotation = All Expenses upto the buyer’s warehouse.

7. Free Alongside Ship (FAS) Price Quotation: Franco Alongside Ship (FAS) Price
Quotation is the highest price quotation includes the cost of the goods and all the expenses
to deliver the goods at the dock nearest to the seller. The buyer has to bear the expenses
of loading, insurance, freight and the customs duty, etc., in addition to the cost of goods.
Though this quotation is used in some countries, it is not in use in India.

FAS Price Quotation = Loco Price Quotation + Cost of Carriage of Goods upto the harbour
nearest to the seller.

8. Free On Board (FOB) Price Quotation: Free on Board (FOB) price quotation is similar
to FOR in inland trade. This is normally used in foreign trade. Under FOB quotation, the
seller quotes a price which includes all the expenses incurred until the goods are actually
delivered on board the ship at the port of shipment.

FOB Price Quotation = Cost of Goods + Expenses up to Goods on Ship’s Board

9. Cash with Order (CWO) Price Quotation: In Cash with Order (CWO) price Quotation,
the buyer has to send cash along with the order, otherwise, the order may not be executed.

10. Cash on Delivery (COD) Price Quotation: In Cash on Delivery (COD) price quotation,
the buyer has to pay cash after receiving the delivery of the goods ordered by him.

Price Estimate

An estimate is an educated guess at what a job may cost. It is not binding. To account for
possible unforeseen developments, you should provide several estimates based on various
circumstances, including the worst-case scenario. This will prevent your customer from being
surprised by the costs.
 35

How to give a price quotation or estimate?

To work out a quote estimate you need to know your fixed and variable costs. These
include the cost-per-hour of manual labour and the cost of the materials you will need. You can
then calculate your quote or estimate based on what you think the job will involve.

You should provide all your quotes and estimates in writing, including a detailed breakdown.
This will help to avoid any disputes about what work is included in your overall price. Be sure to
state clearly whether it is a quotation or an estimate.

Kinds of Offer

There are two kinds of Offer. They are

Firm offer and Offer without engagement

Firm Offer- It is an offer where in the seller undertakes to accept an order, at the price
named and on the conditions started, only within a specified time

Offer without engagement- An offer that is not a firm is an offer without guarantee of
sales at the stated price. The trader reserves the right to negotiate a new price. The trader
can also put additional or new conditions for sale and such an offer is called an offer without
engagement

Letter of Offer

Always give prompt attention to when a customer makes an enquiry whether by letter or
by telephone . In the letter of offer, make every effort to work it up to an order. Your letter must
do a sales job. Tell the potential customer what he wants to know and something more. You
need persuasive skill and good judgement in giving information. Present the facts so as to
show the customer the benefits of buying the product service from you. If you send a brochure,
catalogue, pricelist or samples send a letter with it; give the relevant page numbers or models
which will be suitable to the customer.
36

Guidelines for drafting the offer letter

 The seller must specify the quality of the goods

 Terms of payment, whether for cash or credit specified

 Mode of transportation

 Time and place of delivery

 Terms used in Offer and Quotations

Specimen Letters

1. Asking for an A. C dealer to send their price list and catalogue

Shah Company Limited

Second Avenue, Anna NagarChennai

9th September
2019

Messers Nirmala & Co Ltd

Cross Cut Street
Chennai

Dear Sir

We are already engaged in retail business in electronic goods for the past four years. We
have planned to expand our business. Kindly send us the details regarding the latest copy of
your catalogue, pricelist for air conditioners

Yours Faithfully

Sabariraja

(Director)
 37

2. Reply to the above letter

Messers Nirmala & Co Ltd

Cross Cut Street
Chennai

12th September 2019

Shah Company Limited

Second Avenue, Anna Nagar
Chennai

Dear Sir

Thank you for your letter dated on 9th September and we are glad to enclose the price list
catalogue for the air conditioners. Our products are designed to suit the people from different
walks of life. We try to satisfy not only the luxury class but also the middle class customers. Our
products are noted for its quality and economical when compared to the other company products.
For any further details you feel free to write to us. We offer 20% discount for the bulk orders

Yours faithfully

Mr. R. Ravi

(Manging Director)

Encl: Price list and Catalogue

[Link] making a firm offer

Rakesh Sugar Company Limited

Kolkatta

May 17, 2017

Mothi and Sons

Wholesale Dealers
Chennai
38

Dear Sir

We are happy to inform you that we have just received, very large supply of Refined
sugar of excellent quality, which we can offer at Rupees Fifty per kilograms for 50kg and
Rupees Fifty per kilo for one quintal lots for railways station here, and subject to 20% discount
against cash in 12 days. Offer have already been received from local dealers for 75% of the
total consignment, but we offer you firm up to four quintals. The offer will, however remain
open only till 5 p.m on Saturdays, May 10, 2017

We trust you will be able to take an advantage of this offer.

Yours faithfully

Siddhu

Manager

Rakesh Sugar co. Ltd/

4. Specimen of Solicited Enquiry Letter

Avainsh Electronics
22, Pusa Road
New Delhi 110 005

Dated 12th March 2019

[Link]: AE/Pur/213

Messers Ashoka Engineers

19/20 Karol Bagh

New Delhi 110 005

Dear Sir

Sub: Enquiry for micro recorders

Your advertisement in the August issue of Hindustan daily magazine is of great interest
to us. We would like to know more about the products your firm offers and would appreciate
 39

receiving your wholesale price list and information regarding terms and ordering policy. It is our
desire to offer our customers the widest selection possible of micro-recorders, and we are
therefore always interested in new products that fall within that area. We will look forward to
your prompt response.

Thank you

Yours faithfully

Amit Bhasin

Partner

5. Unsolicited enquiry letter

Dated 12th Feb 2019

Office Supply House

Anand Parvat
New Delhi

Dear Office Supply House,

We have opened a Chartered Accountant’s office in Karol Bagh, New Delhi, recently. We
are looking for a supplier from whom we can source our regular office supplies. May we get
your latest catalogues and price lists and other information about your office supplies and
equipment. We would also like to be placed on your regular mailing list so that we will receive
all new sales and promotional literature.

Thank you

Sincerely,

For ABC Chartered Accountants

40

6. Unsolicited letter asking for quotation

PSG India Private Limited

25, Ashoka Road
New Delhi 110 001

No. PI/08/2012/2

Date 17th April 2015

Messers. Jain Furnishers

1345, Faiz Road
Karol Bagh
Delhi 110 005

Dear Sir

Seeking Quotation

Please send us your quotation for the following:

1. Steel office chairs “S”type (with arms) – 6

2. Steel office chairs (Without arms)- 6

3. Computer tables with two drawers with lock – 4

Please provide us most competitive prices. We are expanding our office and may need
more furniture after a short while. We would be happy to have you as our furniture supplier.

Yours faithfully

For PSG India Private Limited

 41

[Link] reference to an advertisement in “THE HINDU”write a letter to

Priya Aluminimum Co. Lts enquiring the price, terms of sale etc.

P. R. CONSTRUCTIONS
Bunder Garden Road
Delhi

14th June 2019

The Priya Aluminimum Co LTd

22, Asoka Enclave
Delhi – 45

Dear Sirs,

We read with interest your advertisement in “THE HINDU” of 1st July 2019 and are
impressed by the description of the aluminium screws and fittings made by you.

We are building construction contractors and dealers in construction materials in this

area. The demand for aluminium fittings is steadily increasing in this part and we have a large
number of enquires and orders too for them.

Kindly send us your catalogue and price-list for wholesale purchases. Since our annual
requirements in metal fittings of all kinds are large, we would like to place regular orders with
you. Hence, please quote your most favourable prices and terms.

Yours faithfully

B. N. Manjunath

For P. R. Constructions

Manager
42

[Link] to the letter

The Priya Aluminimum Co LTd

22, Asoka Enclave
Delhi – 45

21st July 2019

The Manager
P. R. Constructions
Delhi

Dear Sir

We thank you for your enquiry send on 14th June 2019 and we are glad to know that you
are impressed by our advertisement in the “THE HINDU”

It may be of interest to you that the “Calicum”brand construction fittings are approved by
the ISI. The report of the ISI, appearing in the “THE HINDU”proves our claim that
“Calium”construction fittings – the products of this company of All India Reputation are among
the superior fittings now available in the Market.

The enclosed catalogue will give you all necessary details about our screws, plates,
brackets etc. The prices quoted by us are very competitive and F.O.R any place in India. In
view of the large business promised, you will be given a special Trade discount of 5% on all
orders and additional 5% on all others exceeding Rs. 25000/-

You will be pleased to know that in the coming winter we plan to open our Branch in
Chennai for the greater convenience of our customers in South India. Mean while, we assure
you of our immediate attention to your orders.

Yours Faithfully

For P.K. Alminimum

R Ramkumar

Manager
 43

[Link] Letter

Jain Furnishers

1345, Faiz Road

Karol Bagh, New Delhi 110 005

Dated 20th Feb 2019

PSG Indian Private Limited

25, Ashoka Road

New Delhi 110 001

Dear Sir

We thank you for your letter number PI/08/2012/2, dated 02/08/2013. As desired we
give below the prices for items required by you.

1. Steel office chairs “S”type (with arms) – 6 – Rs. 1450 per chair

2. Steel office chairs (without arms) – 6 – Rs. 1100 per chair

3. Computer tables with two drawers with lock – 4 – Rs. 1800 per table

Terms

1. The price quoted above are exclusive of sales tax which is 5% of the given rates

2. The goods would be delivered within 15 days of receipt of order

3. Payment may be made by cash or cheque on delivery of goods

4. Cartage will be extra, which would cost about Rs. 200 from our shop to your office

5. This quotation is valid for one month from the date thereof
44

6. If you have any other query, you can contact us phone no 09845200378 any time.
We are looking forward to have a long term relationship with you.

Yours faithfully

For Jain Furnishers

Proprietor

[Link] No. 1

Rathi and Bros

141, T. R Road

Adyar Chennai

Dear Sir

We are happy to quote the following price for our new rainproof tarpaulin

10m x6m 2.5mm thick Rs. 2,500 F.O.B

5mx4m 2.5mm thick Rs. 1800 F.O.B

15mx7m 2.5 mm thick Rs. 2100 F.O.B

This is subject to your reply by wire/phone/email on or before 21st july 2019 as the
market is very active.

Yours faithfully

Ramkrishana

For Rathi & Bros

VYsya Jute Bags

124, Byepass Road

Salem -1
 45

11. Reply for the quotation

July 14, 2017

Vasantha & Co

14, C.P Koil Road

Chennai 600 018

Dear Sir,

Thank you for your enquiry. We have pleasure in submitting the quotation for the jute
bags we manufacture. Thus Quotation is subject to the general conditions and specific conditions
printed below and overleaf.

Model Size Price per 1000

BJB 1 Small Rs. 3000

BJB 2 Medium Rs. 5000

BJB 3 Large Rs. 10000

Yoursfaithfully

R. Vishal

Proprietor

12. Letter making a firm offer

Bombay Textiles Company imited

14, Temple Street

Mumbai
46

14th August 2017

Madan Company Ltd

Wholesale Dealers

Bangalore

Dear Sir

We are happy to inform you that we have manufactured huge variety of cotton sarees for
pongal festival and we can offer you 5% discount against cash in 15 days.

Offers have already been received from different dealers for 70% of our consignments.
This offer will remain open till the end of the is month only.

We hope you will avail this offer.

Yours faithfully

R. Sabari

(For Bombay Textiles)

Status Enquiry As a firm grows in size its volume of business increase and credit also
increased. New fresh buyers both the wholesalers and retailers will approach them. A reputed
concern cannot offer dealer ship to fresher without knowing their credit worthiness. Hence,
many concerns make an enquiry regarding their financial position and this letter is called as
status enquiry letters. These enquiries are usually made to bankers, financial institutions and
other business houses.

Letters related to status inquires and credit must be written with the greatest tact. A
buyer’s credit standing depends on his Capital, Capacity, circumstances and Characters. With
all these aspects of credit, taken into consideration, credit is granted. Information about
customer’s financial standing and paying habits of the customers is got from the references.
The inquiry should be specific and clear. Status inquiry questionnaires are quite useful since
the definite questions can bring definite and clear answers from references. The references
 47

gives information only as a favour. Courtesy demands that the information should be requested
politely and with an offer to do return the favour.

Letters giving credit information must be marked “confidential” and addressed by the
name of the individual who has signed the inquiry letter.

The information given must be helpful to the inquirer as well as fair to the credit applicant.
The behaviour of a customer may not be the same with all his creditors; besides with a long
standing credit relationship, many little faults on either side may have become accepted as
routine. The reference can help by giving information about the scale of the customer business,
reputation as a skilled businessman and habits with regard to the payment of bills.

13. Specimen of Status Enquiry Letter

Emerald Insight led

Anna salai
Chennai 600 002

August 14, 2019

Confidential

The Manger
Indian Bank Ltd
Anna Nagar

Sir

I request you to enlighten us with the financial status of Mr. Manjunath your customer
for the past five years. The company has approached us for a dealership for a huge amount.
We will be happy if you can provide us with the information regarding the financial status, so
that we can decide whether to offer him the dealership.

The information provided will be treated as confidential.

Yours faithfully

DR. S Surya

(General Manager)
48

Check Your Progress

1. Expand F.O.R and C.O.D

2. When does the firm write the enquiry letter?

3. What do you mean by Quotation?

4. What do you mean by status Inquiry Letter?

2.9 Summary

When the purchaser wishes to get information about the quantity, price, terms of sales
and availability etc. he writes a letter of enquiry to the seller. An enquiry letter is written by a
potential customer and is preliminary exercise that may lead to a contract. Inquiry letter is
written by the Employer or Management group of a section of a large cooperate firm inquiring
certain issues, the reason behind it. This kind of letters is written in order to clear up a dispute.
An enquiry letter is a formal way of requesting to get information about anything from anyone
formally. When an inquiry letter is written to an organization or a person he has to give a reply
 49

for the letter by giving the correct information for the request of inquiry. When the intending
buyer of goods makes an enquiry in response to some advertisement or communication from
the seller or supplier makes an inquiry in response to some tender or other communication of
the buyer, it is termed as solicited inquiry. When enquiry is made about some favourable terms
or the special price it is called enquiry for favour. When you are making an unsolicited enquiry,
you are supposed to give your introduction in the beginning of the letter, along with the purpose
of making enquiry- whether goods or services required to be purchased. Ask for the details of
goods/ services or other requirements. If an enquiry is for goods and services the quality,
quantity, size, brand, make etc. In case the samples patterns, pricelist are required mention
them specifically. An offer is voluntary and is sent to the prospective customers. It resembles
like the letters and written with the intention to boost the sales. An offer is a kind of advertisement
made for the sale of the goods. It must be persuasive. It must be drafted tactfully. A prompt
reply creates a good impression over the seller. While sending reply price list, quotation, cagoule
has to be enclosed with the letter. Clear, correct and accurate information must be conveyed in
a polite way and must also express their gratitude for the enquiry made. A quotation is a
specific offer for sale. It is sent in response to an inquiry from a particular person or business
house. Thus it is a reply message to an inquiry from a potential buyer. Loco means ‘On the
Spot’. Therefore, the loco price refers to the cost of goods at the factory or godown of the
seller. Once the goods are out of the sellers’ factory or warehouse, all the expenses for carrying
the goods from the seller’s warehouse to the buyer’s place to be borne by the buyer. This is the
lowest price quotation. Always give prompt attention to when a customer makes an enquiry
whether by letter or by telephone . In the letter of offer, make every effort to work it up to an
order.

2.10 Key words

 Enquiry

 Quotation

 Firm offer

 Price estimate

 Loco price
50

2.11 Review Questions

1. As a publisher, draft a letter answering trade enquiry of a book seller

2. Explain the different types of enquires

3. Draft a letter asking the Air conditioner dealer to send their price list and catalogue

4. What are the points to be considered while drafting the inquiry letter?

5. A customer has placed an order for the goods to be supplied on credit of thirty days but
has not given any information about himself. Write to him asking for credit information

6. Draft a letter to be sent to a College Principal who has not placed any order with you for
two years though she used to buy large quantities of answer books from you every year.
Offer an inducement to get her to place an order

7. Your class has decided to go for a picnic. Write a letter to the owner of a bus service
making enquiries. Give all required details

8. Invite a marketing agency to quote terms for designing a marketing campaign for a new
product you intend to launch shortly

9. Write a letter from Saravana Traders limited to Bhagavan Press asking for quotations for
printing of their catalogue 45,000 copies , copy enclosed

10. Make an unsolicited offer to a departmental store undertaking to offer the regular supply
of a variety of rice

11. Write a letter to the publisher detailing the missing pages in book that you bought from
them and ask for a replacement
 51

UNIT 3
ORDERS, EXECUTION AND
CANCELLATION

Learning Objectives
After reading this unit, you must be able to:

 Explain the purpose of order form

 Highlights the hints for drafting the order letter

 Describe about the confirmation and cancellation of order

 Draft letters of orders, execution and cancellation of order

Structure
3.1 Introduction

3.2 Order Form

3.3 Hints for drafting the Orders

3.4 Confirmation of Order

3.5 Cancellation of Order

3.6 Specimen Letters

3.7 Summary

3.8 Key Words

3.9 Review Questions

3.1 Introduction

Orders are offers to buy goods or service from a seller . It is the acceptance of an offer by
a seller or the quotation of a seller. This is considered as the first legally binding document
between the buyer and seller. Greater care should be taken while preparing the orders. The
order is a commitment on the part of the buyer to pay for the sale once it is executed. Order are
52

the routine letters and their effectiveness depends on the accuracy of the details. Most of the
concerns of an order can be tabulated. Replies to the orders are treated as the opportunities to
build goodwill and relationship with new customers, uncertain customers as well as long standing
of loyal customers. An offer after accepted is followed by an order. The letter which accepts the
offer is called as the letter of acceptance. Order is an offer to buy goods from a seller. By
nature order is the good news letter. Once the order is placed in response to a quotation, the
seller proceeds to execute the order. The order is the commitment on the part of the buyer to
pay for the goods received by him. An order should be placed with the great caution. Making
enquiry is the first stage of getting the information on the part of the buyer. Seller replies to the
buyer. Acceptance of the offer is in the form of an order which establishes the relationship with
them. The order must be clear and complete. Order letters mainly include three kinds of details
such as what you are ordering, transportation details and the mode of payment, colour, style,
size, price etc. The order details with the terms and conditions confined to the sale.

Before placing an order, get all details of what you want to buy. This in turn details
with:

Product, its specifications and Quantity

Some products come in a variety of sizes, colours and models and so on. Many products
are sold in packages of different sizes. Identify the exact product and item you want by giving
specifications of size of the product or the packaging, colour, catalogue number and model
number and unit price

Packing

Packing a consignment of goods which is suitable for transport is the responsibility of the
supplier. Buyer’s instructions are needed only if the goods are to be specially packed for any
special purpose, such as for exporting.

Delivery

The place, time and mode of delivery have to be indicated at the time of placing the order
 53

Give the full address of the place at which the goods are to be delivered. If the order is
urgent and you require the goods within a certain time give the date by which the goods
should be delivered.

Mode: The mode of delivery is required only if there is any special requirement

3.2 Order Form

Details to be given in an order are easy to tabulate, and hence printed forms are used for
placing the orders. Sellers prepare the forms with columns required for their products. This
ensures that no essential detail is left out; the form makes it easy for the customer to place an
order. The standardized forms have all instructions required and accompanied by a covering
letter if any special information is left in the order form. Order forms includes all details regarding
the packing, insurance, transportation and about terms of the payment

3.3 Hints for drafting the Orders

After the price and terms are settled by the quotation and discussion and the samples
are approved, the buyer may place a trial order to make sure that the seller gives efficient
service, that is proper packing, delivery of the goods in time, prompt receipts for payments etc.

 Give the necessary information required

 State the mode of the payment

 Furnish special information regarding the packing and marking

 Details of the shipment of goods

 Emphasize on quality, promptness, discount and time factor

 Indicate the address to which the goods to be delivered

 Thank the seller for the quotation he has sent

 Be clear on the quantity ordered

 Mention the negotiated price

 Give an appropriate closure

 State the manner of payment

54

The seller must find out and clear himself regarding the following before executing the
order

He must be clear regarding the price and technical specifications. The seller must have
no doubt regarding the time factor and terms of payment . He must check the delivery terms.
The seller should check the stock position. If the seller is not satisfied with the above parameters,
the buyer will be informed to correct the discrepancies in the order. When the letter of acceptance
is received from the seller a binding contract between the buyer and seller occurs. Bothe the
parties cannot withdraw the order or cancel it as it become the breach of the contract

3.4 Confirmation of Order

An order placed by telephone, email needs to be confirmed by a letter because a signed

and written document is necessary for a contract. The letter opens with a reference to the
order already placed, and the confirmation , for example: “We confirm our order for (name
product)placed by the telephone this evening”. All the details of the order must be given just as
in a letter of order.

The letter through which the seller informs the customer that the ordered goods have
been delivered is called order execution letter. Once seller receives order from customer, he
can accept or reject it. Whether the order is accepted or rejected, the seller must inform it to
the customer. When the seller accepts the order and delivers the ordered items, he writes the
order execution letter. The purpose of writing this letter is to inform the customer about the
date of delivery, mode of transportation used, the probable date at which customer will get the
shipment and the total price. The invoice is usually enclosed with this letter.

Contents of Order Execution Letter

Generally, and order execution letter conations the following points:

 Reference number of order letter with date

 Name, brands an quality of products

 Quantity of products

 Date of delivery of goods

 55

 Nature of packing of goods

 Transportation used for delivering goods

 Total price of the products and

 Expected date and mode of payment

Execution of the order

Always acknowledge as soon as you received the order. The acknowledgement will
bring good relationship with the customers. This include the following points:

1. Name and quantity of the article dispatched or being dispatched.

2. Date of shipment and expected date of receipt or the date of delivery of goods, mode of
transport and mode of payment.

3. Assure the customer that every attention has been paid to the orders and that future
orders will receive the same careful attention.

4. Sometimes it may not be possible to execute the order promptly. It might be various
causes like being out of stock, scarcity of material, strike or lockout , machinery, breakdown,
heavy orders in hand, shifting of premises or customers asking for special discounts and
terms for sale. It is better to inform the buyers the reason for the delay in execution of
order and it is advisable to state what is being done to speed up the delivery

Changes in Orders

The customer might have to make a change in an order which has been placed, it may
be correction on finding a mistake or a request for a change in the quantity required or the
date or the place of delivery. Several points must be taken into consideration while drafting
the letter related to changes in orders such as Mentioning the reference to order, statement
of change required, and explanation of the reason, Offer to cooperate and adjust and
apology for the inconvenience.

3.5 Cancellation of Order

An order may have to be cancelled on account of unforeseen circumstances. There may

be a disaster like flood, earthquake, war which affect either the buyer or the seller. Cancellation
56

of the order by either side affects the other because it upsets the plans. If the buyer cancels the
order, the seller may incur loss. He might have already incurred expenses in buying raw material
and manufacturing the goods; he will be left with no buyer for the goods. If the seller cancels
the order, the buyer may find that his business is lost because he has no stock and cannot get
from another supplier. When the buyer writes letter to the seller requesting him not to deliver
the ordered goods, it is called letter of order cancellation. Generally, customer places orders
for delivering some specific good in his address. Having been received an order from customer;
the seller takes step to deliver goods immediately. Because, delay in delivery can cause the
customer to do business elsewhere. However, after placing the order, the customer writes a
letter to the seller cancelling the previously placed order. This letter is known as letter of order
cancelling the previously placed order. This letter is known as letter of order cancellation.

Causes of Order Cancellation

A potential buyer may cancel his order on the following grounds:

 If the seller fails to deliver goods within the specified time

 If the prices of ordered products continues to decrease

 If the demand of the ordered items declines gradually

 If the customer gets an offer from elsewhere to buy the same product at a lower price

 If the customer decides to discontinue his business

Contents of Order Cancellation Letter

A letter of order cancellation usually conations the following:

 Date and reference of the order letter placed earlier

 A direct request to cancel the order

 Cause of cancelling the order

 A declaration stating his unwillingness to receive goods if the seller delivers.

 57

 Regretting for any inconvenience of seller caused due to cancellation of order

 Expressing the hope to maintain business relationships in future

 Assuring to compensate any loss suffered by the seller due to order cancellation through
future business dealings.

Refusal of the order

A seller does not refuse an order, due to severe competition, no business person can
afford to turn away a customer. A customer whose order is refused is most likely to become a
lost customer. Therefore every effort must be made to keep the customer by persuading him to
change the terms of his order. If the customer makes an unreasonable demand such as asking
for delivery in a very short time when there is limited supply of goods or there is a rush of
orders, the seller may not be able to accept the order on those terms. But it is worthwhile to try
to make the customer accept a later delivery date. If goods cannot be delivered at the expected
time, contact the customer to negotiate a new date.

3.6 Specimen Letters

Order letter No.1

Manju Computers and Software

45, RR Road, Adaya
Chennai 600 040

June 14th 2019

Your Ref: 48/samples/06

Our Ref: Sp/ MAS/2017111

M/s Chinappa Traders

45, luz church road

Mylpaore
58

Chennai 600 004

Dear Sir

I am pleased to place an order for 4000 A4 sized folders A4 sized at the rate specified
in your offer letter dated May 25th 2019

Please forward the consignment to the above address with the credit invoice
immediately

Yours faithfully

R. Ramesh kumar

Purchase Manager

Letter No. 2 -Á letter of acceptance of an order for the order letter

M/s Chinappa Traders

45, luz church road

Mylpaore

Chennai 600 004

Your Ref: Sp/ MAS/ 2004111

Mr. Ramesh Kuamr

Manju Computers and Software

45, RR Road, Adyar

Chennai 600 040

Dear Sir,

Thank you for your order of the new A4 Folder (4000 nos). We have already arranged
 59

to dispatch them and they will reach you by this afternoon. I am enclosing copy of the credit
invoice as desired by you.

Yours faithfully

Chinappa

(Manager- General)

Letter no 3 : Letter for the rejection of the order

Ramkrishna Enterprises

12, PK Road

Chennai 600 041

Your Ref: Order No. 458, 14th March 2018

M/s Guru Enterprises

45, S P koil Street

Alwarpet

Chennai 600 045

Sir,

We very much regret that we are unable to accept your order for sanitary wares for your
specifications. Moreover such large quantities you require may not even be available in second
hand markets. If it is not of place, we suggest that you advise your buyer, the hotelier to get the
entire plumbing redo with technically advanced sanitary wares which we are marketing new.

Yours faithfully

Mr. Florida Mathews

Marketing Manager
60

Letter no.4 - Letter placing the order for Air conditioners

Sujatha Electricals Limited

45, Ram View

Salem

Ajantha Electricals

Bhavan Apartment

Mangalore

Dated 14th April 2017

Dear Sir

Thank you for your prompt reply. We have received the catalogue and the price list. We
are glad to place orders for 100 pieces. Please arrange for the following:

1. Voltas Window A/c – 30 pieces

L G Split A/C – 30 Pieces

Samsung Window A/C – 20 Pieces

Samsung Spilit A/C – 20 Pieces

Onida Window A/c – 10 Pieces

Please confirm the order and we request you to dispatch the goods within two weeks.
We reserve the right to reject the goods if received late. You can be sure of still the larger
orders if you can accept to our terms and conditions. A prompt reply will be more
appreciated

Yours Faithfully

R. Ramakrishna

(General Manager)
 61

Letter No. 5 - Reply for the order received

Ajantha Electricals

Bhavan Apartment

Mangalore

7 th September 2017

Ramesh Electricals

Salt view

Salem

Dear Sir,

Thanks for your order dated 14th April and we take it as an indication of your increased
business. All the items you have ordered will be dispatched on 12th October by Thirumalai Lorry
transport and will reach you by 15th October. We have enclosed an invoice for Rs. 16 lacs
payable in 30 days after sight and trust that you will honour it on the maturity.

We thank you once again for the order and hope you will continue to patronize us. We
look forward for the development of our mutual business relations and assure you our best
attention to your orders.

Yours faithfully

Mr. Manish

Managing Director

Encl: 1. Lorry Receipt

2. Invoice
62

Letter No. 6- Write a letter for executing the order

Ram traders

45, Vikram street

Bangalore

Dated 14th August 2018

Sita Textiles

85, Vijay Street

Bangalore

Dear Sirs,

Thank you for your order for 15000 cartons with corrugated partitions for packing biscuits.
We shall deliver your goods in 10 days . The bill will be sent with the goods and the payment
will be made within seven days entities you to a discount of 2%. You will find that our goods
and services are of high standard. We are looking forward to a standing contract for regular
supplies of packing material for your biscuits and confectionery

Thanking You

Yours truly

Mr. Arun

(Managing Director)

Letter no. 7- Write a letter for the cancellation of the order

Ram traders

Vijay bhavan Road

Mysore
 63

Dated 14th August 2019

Sita Traders

Ravikrishana Road

Hyderabad

Dear Sir

Thank you for your order of 50000 units of mobile phones to be delivered in the course of
the next one month. These handsets are imported and we are required to effect delivers as
and when we receive a consignment. Although the consignments arrive regularly, we have a
very large number of orders to be delivered in the next three months and will not be able to
undertake your contract on the time schedule you have proposed. We would be glad to enter
your order in out waiting list. We estimate that we will be able to start your delivery schedule by
the middle of this month. Please confirm your order for this schedule of delivery. We are sorry
for the inconvenience

Thanking You

Yours Truly

Ram Rajeev

(Managing Director)

Letter No. 8- Cancellation of Order

Chennai Silks

T Nagar

Chennai

Date 01/03/2019

Lakshmi Stores
64

Lake view street

TIruppur

Dear Sir,

We wish to confirm the following e-mail sent by us cancelling the order for 500 pieces of
T- Shirts of various sizes from 2nd July

“Cancel order 2nd July for T shirts””

We have been compelled to cancel the order due to the fall in demand in the market and
arrival of the goods at lesser prices in the market. We request you to stop the consignment.
We assure you that we shall make good to you the loss in the order at the earliest.

Yours faithfully

R Rajesh

Chennai Silks

Letter No. 9- Write a letter stating the delay in execution

Sakthi Masala Ltd

Sterling Road

Chennai

Dated 15th April 2018

Messers. Sriram Ltd

Chruch Gate

Mumbai

Dear Sir
 65

Sub: Delay in Execution of the order – Reg

We are pleased to receive the order for 1000 pieces, which you want us to supply
immediately. The recent strike of transport workers has caused delay in the delivery of the
goods. We are sorry that your order is held up for this reason. All goods are packed according
to your instructions and handled over to the transport agents on 3th September, but due to
unexpected strike your goods are still in Chennai. We are making private arrangements for the
transportation of the goods. We apologise for the delay , and assure you that we are doing our
best and get your consignments dispatched at the earliest.

Yours Faithfully

Mr. P. Jai

Letter No. 11- Cancellation of an order

Chennai Foods Ltd.,

M.T. Road

Ambattur.

21st December, 2005

Nilgiris Stores Ltd

2nd Avenue

Ashok nagar, Chennai.

Dear Sir,

Sub: Cancellation of Order.

We thank you for your order dated 15th December, We regret to inform you that we
are unable to supply you appalam, sambar powder and pickles. The delay is due to the non
availability of raw materials for the above products. Our suppliers have assured us that it will be
66

available in a month time. We are very sorry for our inability to serve you at present, but look
forward to the time when we shall be able to attend to your order. We request you to cancel the
order and enter to a fresh agreement in future. We hope you will co-operate and bear with us.

Yours Faithfully

Karthick

Manager

Letter No. 12- Cancellation of Order

Jay Industries Limited

24, RR Street, Mylapore Chennai 600 004

Your Ref: Accept/ Acc/ Roy/ 045

14th August 2018

Manish Nuts and Bolts

45, T. P. Koil Street

Triplicane

Chennai

Dear Mr. Radhakrishnan

I request you to cancel our order No. 185/ 2018 for an assortment of steel screws, nut
and bolts. The reasons are obvious. Our production schedule will get upset if we are to wait
any longer. The order in its entirely gets cancelled by this letter

Yours sincerely

R Ragavan
 67

Purchase Manger

Letter No.13- Cancellation of Order

National Enterprise

T.P. koil Street

Chennai

Date: 01/03/2019

Priya Associates

Vinayakar street

Chennai

Dears Sir

Thank you for your order for stationary items to be supplied by April 4th this year. Owing
to a rush of orders and somewhat slow supplies, we are not able to guarantee that we can
supply your requirement on date. We are handling all orders in rotation, and expect to be able
to deliver your consignment around15 April. We are making every effort to meet the requirements
of all customers and will get in touch with you as soon as we have the required supplies. In the
meantime, we request you to confirm your order for delivery by mid- July.

Yours faithfully

Chandran

Manager

Letter No. 14- Letter related to Changes in Order

RR Computers

Mylapore, Chennai 600 004

68

Date: 01/03/2019

Mishra Traders
Adyar
Chennai

Dear Sir,

Please refer to Order 456/B dated 14th November 2018 for the supply of 850 units of Dell
PCs to delivered on December 2018.

The computers are to be installed in our laboratory and training centre which we intended
to start on 14th April 2019. Unfortunately, the final touches of the reconstructions of the rooms
will be little delayed. We request you to delay the delivery by Two weeks, we shall be able to
take delivery by July 2019.

Please excuse us for any inconvenience that might be caused by this delay, which we
could not avoid , and please confirm the revised date of delivery.

Yours faithfully

Mr. Manjuanth

Manager

Check Your Progress

1. What do you mean by order?

2. What is order form?

 69

3. What do you mean by cancelling an order?

4. List the contents in the order letter

3.7 Summary

Orders are offers to buy goods or service from a seller . It is the acceptance of an offer
by a seller or the quotation of a seller. This is considered as the first legally binding document
between the buyer and seller. Greater care should be taken while preparing the orders. The
order is a commitment on the part of the buyer to pay for the sale once it is executed. Order are
the routine letters and their effectiveness depends on the accuracy of the details. Most of the
concerns of an order can be tabulated. Replies to the orders are treated as the opportunities to
build goodwill and relationship with new customers, uncertain customers as well as long standing
of loyal customers. Acceptance of the offer is in the form of an order which establishes the
relationship with them. The order must be clear and complete. Order letters mainly include
three kinds of details such as what you are ordering, transportation details and the mode of
payment, colour, style, size, price etc. The order details with the terms and conditions confined
to the sale. Details to be given in an order are easy to tabulate, and hence printed forms are
used for placing the orders. Sellers prepare the forms with columns required for their products.
This ensures that no essential detail is left out; the form makes it easy for the customer to place
an order. The standardized forms have all instructions required and accompanied by a covering
letter if any special information is left in the order form. An order placed by telephone, email
needs to be confirmed by a letter because a signed and written document is necessary for a
contract. The letter opens with a reference to the order already placed, and the confirmation ,
for example: “We confirm our order for (name product)placed by the telephone this evening”.
70

All the details of the order must be given just as in a letter of order. The letter through which the
seller informs the customer that the ordered goods have been delivered is called order execution
letter. Once seller receives order from customer, he can accept or reject it. Whether the order
is accepted or rejected, the seller must inform it to the customer. An order may have to be
cancelled on Account of unforeseen circumstances. There may be a disaster like flood,
earthquake, war which affect either the buyer or the seller. Cancellation of the order by either
side affects the other because it upsets the plans. If the buyer cancels the order, the seller may
incur loss. A seller does refuse an order, due to severe competition, no business person can
afford to turn away a customer. A customer whose order is refused is most likely to become a
lost customer. Therefore every effort must be made to keep the customer by persuading him to
change the terms of his order.

3.8 Key Words

 Order

 Order Cancellation

 Order form

 Order execution letter

 Replies

3.9 Review Questions

1. What are the hints while drafting the order letter?

2. Write the merits of printed order form

3. Draft a letter of cancellation of the orders placed with suitable reasons

4. Confirm the order given over the telephone for the supply of 100 kg of nirma washing
powder

5. You have received an urgent order for 25 vacuum cleaners from a hotel. Owing to a rush
of orders there will be delay of three weeks in delivering the goods. Write a letter asking
for the extension of time

6. Confirm an order given by e-mail for 100 pocket calculator for your school

7. Place an order for 300 boxes of coloured crayons subject to the manufacturer’s agreeing
to pack them in specially designed boxes for diwali presentation for no additional charge
 71

UNIT 4
COMPLAINT, ADJUSTMENTS AND
SETTLEMENT OF ACCOUNTS

Learning Objectives
After reading this unit, you must be able to:

 Discuss about the causes of complaints

 Discuss about the hints for drafting the letter of Complaint or Claim

 Draft the complaint, adjustment and settlement of account letters

Structure
4.1 Introduction

4.2 Hints for Drafting the Letter of Complaint or Claim

4.3 Adjustment Letter

4.4 Hints for Drafting the Adjustment Letter

4.5 Settlement of Accounts

4.6 Specimen Letters

4.7 Summary

4.8 Key Words

4.9 Review Questions

4.1 Introduction

It is natural for human to commit mistakes. From the time the orders received till they
reach the customers, many persons are involved in it, and there is every possibility of inadvertent
mistakes being committed by someone. This may cause inconvenience to the customers.
Hence the customer has every reason to complain the seller. The best business houses with
efficient personnel and which is backed by reputation will also receive complaints. When mistakes
occur, complaints will arise. Complaints are regular part of business. The purpose of writing a
72

claim letter is to get correction and adjustment. The first thing to do is to make a phone call to
the supplier to inform the supplier about the deficiency and then confirm it immediately with a
letter. If the supplier is a reputable company, it is usually enough to point out the mistake in the
execution of the order and leave it to the company to make the adjustment. Errors which very
frequently occur in the best managed business houses, because due to human error. The
moment the mistake is discovered by the trader, he must immediately write a letter of complaint
or claim the supplier. When the defects are proved the suppliers should try to settle the matter
amicably. Occasions which gives room for complaint may vary and hence it is very difficult to
enumerate them. However the following are the important causes that give rise to complaints

Incomplete or defective order

Inordinate delay in the execution of order

Supply of wrong goods or defective goods

Wrong directions to the dispatch section

Defective packing which has lead to the damage of the goods in transit

Variance in terms and conditions relating to the payment and delivery

Mistakes committed by accounts section in the preparation of invoice

Manufacturing defect not detected at the time of inspection

When a wrong is to be rectified, making a complaint requires tact, carefulness and art of
convincing . The complaint should be made politely without showing any sign of anger. A trader
must be extra ordinarily careful while drafting a letter of claim in a satisfactory manner, as such
letters are drafted in a mood of dissatisfaction. To avoid unnecessary bitterness and legal
proceedings the compliant letter should be drafted with politeness.

4.2 Hints for Drafting the Letter of Complaint or Claim

 Make a clear statement of the mistake

 The claim should be specific

 73

 State the steps necessary to rectify the mistake

 Make a concrete suggestion for the redress

 Brief the inconvenience suffered by the customer

 Make a courteous but firm request that the matter should be attended promptly

 The letter must be fair but not apologetic

Your claim and your expectation of the seller’s response will depend on whether you are
a commercial buyer or a consumer. As a commercial buyer you make adjustments, so that the
inconvenience and the hindrance to business are minimised; there is more inconvenience than
personal loss. You also have greater power to get adjustments and compensation because as
a regular buyer, you have a hold on the seller.

The letter of compliant should include the following points:

1. Reference to the order, its date, number

2. Clear description of the mistake or deficiency

3. Clear statement of the inconvenience or loss caused, and the action the supplier should
take to lessen the inconvenience

4. Request for adjustment and/or investigation

4.3 Adjustment Letter

Attention and response to customer ‘s complaints is an important part of customer service.

There is growing competition, increased customer awareness and legislation to protect
customers. The businessman must welcome the complaint letter and should not consider it as
a nuisance. The replies to the complaint letter are called as adjustment letter. It requires more
skill as they not only have to satisfy the customer but also has to safeguard the reputation of
the firm

Principles of Adjustment Policy

Customer is always right. No one will complain unless there is reason to complain. This
policy can be considered to an extent as this policy encourages unscrupulous customer make
false complaints.
74

Grant adjustment whenever the claim seem fair: This is a widely used policy towards
claims as only the genuine claims are granted

Caveat Emptor: It means let the buyer be aware. It does not entertain any claims. No
firm can adopt it unless it wants to ruin itself.

Every game cannot be played in the same manner. In the same way every complaint is
unique. Unless there are peculiar problems, the second policy can be considered more effective.
The adjustment letter will either be granted or refused. An adjustment is granted when there is
a fault in the execution of the order or the goods are defective or damaged. Express regret and
sympathy for the customer experience. State the adjustment being made and what is being
done to reduce the inconvenience

4.4 Hints for Drafting the Adjustment Letter

 When they feel the customers are right, they thank the customer for pointing out the
mistakes which needs improvement

 Admit the faults frequently

 Regret the mistake sincerely and promise it will not occur in future

 When you feel the customer is wrong gradually make him to look at the situation from
your angle

 Letter must be drafted in a polite way as it is considered an ambassador of goodwill

 Reply for the compliant letter promptly

 Give importance to the customer’s feelings

 Never treats any complaint indifferently

 Avoid wrong words or expressions that seem to change the customer

 Do not think of paying back your customer in the same coining even though is letter is
abusive
 75

Types of Adjustment Letters

The letter of adjustments may be classified as follows:

1. Granting adjustments

2. Refusing adjustments

3. Offering a compromise

4. Apologizing for errors when the damage cannot be put right

5. Offering to make an adjustment on the assumption that the customer is dissatisfied

6. Stop-gap letter informing the customer that investigation is being made

7. Answering a complaint in reader’s grievances column

4.5 Settlement of Accounts

After receiving the goods the buyer should not only acknowledge the receipt of the goods
but also make arrangements for the payment to the seller. The mode of payment depends
upon the agreement between the buyer and the seller. In many cases the accounts will be
settled by means of cheque, demand draft or acceptance of the bills. The cost of remittance is
borne by the buyer except in few cases where the seller will bear. Remittances against periodical
statement of accounts must be maintained with care and accuracy as it is related to money.

4.6 Specimen Letters

1. Letter of complaint for damage in transit

Kamala Stores
Krishana Nagar
KrishanGiri

Dated July 19th 2019

Mr. Gandhi
Godown Street
Godavari
76

Dear Sir,

Sub: Goods received in damaged condition – Reg

Thank you very much for the dispatch of books ordered by us on 2th July . We regret to
inform you that one of the boxes containing 15 books were found to be in a damaged condition
and it is not fit for sale. On careful examination it was found that the boxes were not packed
properly as such the damage might have occurred in transit

Hence we are forced to return the goods. Will you please let us know immediately whether
we send them back so that you can replace them? We are sorry for what has happened.

Yours Faithfully

Mr. M. Krishna

2. Reply to the above letter

Mr. Gandhi

Godown Street

Godavari

Dated 14th July 2015

M/s. Kamala Stores

Krishna Nagar

Krishangiri

Dear Sir

We thank you for your letter dated 16th July. We are sorry to know that you have
received 15 copies in a damaged condition. We shall be very grateful to you if you can
return those 15 copies to us, so that we can replace them immediately.
 77

We are sorry for the inconvenience caused by us. We assure you that such mistakes
will not be repeated in future. The Postage cost will be borne by us and once again we
apologize for the inconvenience caused by us

Yours faithfully

G Gandhi

3.A Letter of complaint against defective good

Kamalnath and Brother

Babu Street

Chennai 600 005

Date 14th august 2018

Kavitha Biscuit Company

Chennai 600 008

Dear Sir

We are sorry to point out that one of our esteemed customers returned to us, this morning
, one carton containing 25 packets of “Kavitha Joy Biscuits”as its contents had become unfit for
consumption owing to defective packing and the consequent damage in transit.

That such a thing should have occurred in a trial order is really unfortunate. However, we
trust that it will not occur again. We shall be glad if you will make immediate arrangements to
give us credit for their value of Rs. 45 which may be deducted from our future payments to you.

Thank you

Yours Faithfully

Kamal Brothers
78

[Link] of complaint for delay in dispatch of goods

Swathi Trading Company

Sivaji Road

Madurai

Dated 3th March 2016

M/s Sneha Company Ltd

Besant Nagar

Chennai

Dear Sir,

We regret to inform you that the inordinate delay on your part in delivering 50washing
machines ordered on 15th February has caused us considerable inconvenience and it threatens
heavy loss to us. We have entered into contract with our customer to deliver them by the end
of February, but the delay in delivery will spoil our prospects. In view of this critical condition we
request you to inform us over telephone, the exact date when delivery could be made. As we
have cordial relationship, I have decided to wait till 6th April. We trust you will take every effort
to prevent us from taking severe action against you.

Yours faithfully

Mr. S. Sankar

5. Letter of adjustment to explain delay in delivering

Sneha Company Limited

Besant Nagar

Chennai
 79

5th March 2017

Swath Trading Company

Sivaji Road

Madurai

Dear Sir

We thank for your letter and we have already send you the e-mail today stating we have
dispatched goods today. We are extremely sorry for the delay. The sudden break down in the
machinery in the last week of March has put us into great difficulties. We made every effort to
set it right, but we could resume the work only after 5 days. Though our employees worked
over time, we could not deliver your goods in time.

We thank you for the consideration you have shown us by extending the delivery date
till 7th April and hope you will accept our sincere apologies for the delay and continue your
patronage with our firm as before.

Thanking you

Yours faithfully

Mr. R. Ravi

6. Letter informing the remittance by cheque

Swathi trading Company

Sivaji Road

Madurai
80

12th April 2015

Ram traders

Besant Nagar

Chennai

Dear Sir,

The goods have arrived safely. We enclose a cheque for Rs. one lakh in full settlement
of my account. Please acknowledge the receipt and credit us with the amount

Yours faithfully

S. Sankar

7. Letter acknowledging the receipt

Vimala Company Limited

Besant Nagar

Chennai

14th April 2015

Ram traders

VV Road

Bangalore

Dear Sir

Thank you for the letter dated 14th April enclosing the cheque for Rs. one lakh. This will
be credited to you in full settlement of your account. We are privileged to have customers
 81

like you. We are pleased to learn that you are satisfied with our products. We expect a
suitable proposal from you at the earliest.

Yours Faithfully

R. Ravi

Letter

8.. Letter of Complaint for damage in transit

RR Milk Products

General Merchants

Ramkrishna Mart

Chennai

14th August 2019

The Secretary’

Gautam Dairy Products (P) Ltd

Thiruvallur

Dear Sir

Your shipment of 50 tins of cow Brand condensed milk arrived today in a heavily damaged
condition. A number of tins are denoted and out of shape while many others are punched and
their contents have partly leaked out. We reported the damage to your forwarding agents at
their local offices here before taking delivery of the packages. But they have disclaimed all
responsibility saying that the damage has been caused by loose packing. The tins are unstable
in their present condition. Therefore we request you to that you must do the replacement of the
whole consignment to enable us to maintain our regular supplies to customers. Also, please
take necessary steps to collect compensation for the damage from your forwarding agents,
Your shipments carried the number BNM/PH – 3780
82

If any further information is required, we shall glad to give it to you.

Yours faithfully

R. Rakesh Kumar

9. Reply for the above letter

The Secretary’

Gautam Dairy Products (P) Lts

Thiruvallur

18th April 2019

RR Milk Products

General Merchants

Ramkrishna Mart

Chennai

Dear Sirs,

We were very sorry to learn from your letter dated on 14th April that condensed milk tins
which you ordered for your week sale arrived so badly damaged the you could not accept
them. As our forwarding agents, speeding Roadways have acknowledged the proper packing
of the consignment, we feel the damage must have occurred in transit. We know how important
it is for you to supply these tins to your regular customers every weekend. We are therefore,
sending you today by speeding roadways, another consignment of 50 cow brand condensed
milk tins. It shall reach you promptly. Just give a ring to the local office of our forwarding agents
at your end and ask them to arrange for a special delivery of the tins as soon as the consignment
arrives at their offices. You will have tins on the first day of your weekend sales. Place leave the
damaged tins with the forwarding agents we shall ourselves submit to them a claim for damages
so that you will have no further difficulties. We appreciate your writing to us promptly and hope
 83

that your customers will be satisfied with the condensed milk as ever before. The Motor Receipt
no. 1288888 of 21st August 2019 is enclosed.

Yours faithfully

Rakesh Khanna

Manager

Check Your Progress

1. What is the Complaint letters?

2. What do you mean by adjustment letters?

3. What is settlement of accounts?

4.7 Summary

It is natural for human to commit mistakes. From the time the orders received till they
reach the customers, many persons are involved in it, and there is every possibility of inadvertent
mistakes being committed by someone. This may cause inconvenience to the customers.
Hence the customer has every reason to complain the seller. When a wrong is to be rectified,
making a complaint requires tact, carefulness and art of convincing . The complaint should be
84

made politely without showing any sign of anger. A trader must be extra ordinarily careful while
drafting a letter of claim in a satisfactory manner, as such letters are drafted in a mood of
dissatisfaction. To avoid unnecessary bitterness and legal proceedings the compliant letter
should be drafted with politeness. Your claim and your expectation of the seller’s response will
depend on whether you are a commercial buyer or a consumer. As a commercial buyer you
make adjustments, so that the inconvenience and the hindrance to business are minimised;
there is more inconvenience than personal loss. You also have greater power to get adjustments
and compensation because as a regular buyer, you have a hold on the seller. Attention and
response to customer‘s complaints is an important part of customer service. There is growing
competition, increased customer awareness and legislation to protect customers. The
businessman must welcome the complaint letter and should not consider it as a nuisance. The
replies to the complaint letter are called as adjustment letter. It requires more skill as they not
only have to satisfy the customer but also has to safeguard the reputation of the firm. Every
game cannot be played in the same manner. In the same way every complaint is unique.
Unless there are peculiar problems, the second policy can be considered more effective. The
adjustment letter will either be granted or refused. An adjustment is granted when there is a
fault in the execution of the order or the goods are defective or damaged. Express regret and
sympathy for the customer experience. State the adjustment being made and what is being
done to reduce the inconvenience.

4.8 Key Words

 Complaint Letter

 Adjustment Letter

 Claim

 Settlement of accounts
 85

4.9 Review Questions

1. What precautions to be taken while drafting complaint letter?

2. Write a reply to a complaint letter from the customer who has purchased an AC recently
from you

3. Write a letter to the Manager of your bank, complaining that your person is kept waiting
every time he visits the bank to make deposits or collect cash for the office

4. As a retailer, write a letter of complaint to the manufacturer, drawing attention to the

manufacturing defects in the goods (product of your choice) supplied two weeks ago. Ask
for suitable redress.

5. Draft a complaint letter stating the amount has been wrongly specified in the invoice to
their seller
86

UNIT 5
CIRCULAR LETTERS

Learning Objectives
After reading this unit, you must be able to :

 Discuss the objectives of Circular letters

 Explain the situation when the circular letters are sent

 List the merits of circular letters

 Draft very effective circular letters

Structure
5.1 Introduction

5.2 Objectives of Circular Letter

5.3 Importance of Circular Letter

5.4 Kinds of Circular Letter

5.5 Features of Circular Letter

5.6 Specimen Letters

5.7 Summary

5.8 Key Words

5.9 Review Questions

5.1 Introduction

When the businessman has to communicate some message to a large number of

customers and suppliers, the business organisation uses circular letters. The circular letters
carry the message to a large number of persons at one time. The message to be carried by a
circular letters is the same for all persons. Circular letters are unsolicited letters. To make it
effective, these letters must be drafted in an attractive style and appropriate tone. During the
 87

course of business, occasions will arise to send the circular letters. When the sender wants to
communicate to a large public they can advertise in newspaper or journals. Circular letter is
one of the oldest types letter. This kind of letter originated in ancient time when people felt the
necessity of circulating any message to a large number of people at a time in the same way.
Generally, the letter that is used to circulate any special message to a huge member of audiences
at the same time is known as circular letter. It is one of the cost effective means of circulating
information or introducing new products to mass people. However, circular letters are not only
used in business, but also in social, political and personal affairs.

Prof. W.J. Weston said, “A circular letter is one which is meant to be read by a number of
correspondents. It is of the nature of an advertisement and is usually a business announcement
or an attempt to advance business.”

From the above discussion we can say that circular letter is a kind of written announcement
that is distributed to a large number of people to convey any commercial or non-commercial
message at minimum time, costs and efforts. Drafting circular letter is purely an art. It should
be drafted in such a way that can attract readers’ attention and can serve its purpose.

5.2 Objectives of Circular Letter

The objectives of circular letter are many folds. Generally, circular letter passes business
related information to a huge number of readers. However, it may also circulate non-business
information. Circular letter is drafted and distributed for attaining three sets of objectives: business
objective; personal objective and social objective. These purposes of circular letter are also
known as the situations requiring circular letters. These objectives or situations are discussed
below:

 To obtain publicity for a merchandise

 To make readers more interested in their contents

 To gain the confidence of the readers

 To stimulate sales

 To impress the readers with the facts of the products

88

A. Business Objectives:

Circular letter is written for the following two business objectives:

1. Circulating business information: the primary objective of circular letter is to

distribute information relating to business. Circular letter usually circulates the following business
information:

 Launching a new business

 Expansion of existing business in any new field

 Changing the nature of business

 Opening or closing branches of the business

 Changing the name of the business

 Shifting the address of the business

 Discharging any officer, executive, agent or representative of the business

 Employing any new business executive or agent

 Admission of new partner

 Retirement or death of any existing partner

 Cancellation of any business deal or contract

 Entering into any business contract

 News regarding increase or decrease of price

 News regarding trademarks, registered brand etc.

 Amalgamation of some business units and

 Winding up of business partly or wholly

 89

2. Increasing Demand for the Products: Business circular letter also aims at
increasing products demand. In this case, circular letter contains the following information:

 Innovation of new product

 Quality improvement of existing products

 Import of any new products

 Marketing of new products

 Decease or increase in product price

 Decease or increase in service price

 Any special discount or reduction in price of product or services rendered

 News relating to any business award or certificate such ISO 9001

B. PERSONAL OBJECTIVE

Circular letter may be used to circulate the name and fame of achievement, contribution
etc., of an individual.

C. Social Objective

Circular letter can also be drafted highlighting the social or national problems with a view
to build public awareness.

5.3 Importance of Circular Letter

Circular letter circulates information relating to a company, its products and services etc.
To a large number of people at a time, it plays an important role in the growth and development
of business. Its importance is briefly discussed below:

1. Simple and Easy Technique to communicate the information: Circular letter is the
easy, simple and effective way to communicate any information to a large number of
people.
90

2. Affordable Method: It can be used for wider spread of information. As a result,

organizations can save cost of sending letters to different parties separately and can gain
economy.

3. Helps to Save Time: Instead of reaching individually, circular letter transmits information
to so many people and groups at a time. It helps the organisation to save time.

4. Effortless Method: Writing or typing information and sending the same to each and
every one individually will be tedious job. With the help of circular letter, we can
communicate with the large number of people at a minimum effort.

5. Market Creation: Through Circular letter, a company can inform the potential customers
about its products and services. In this way, new market can be created.

6. Increasing consumer’s confidence: Convincing and attractive circular letter can easily
touch the reader’s heart and thus helps to enhance consumer’s confidence on the
company’s products.

7. Creating Public Consciousness: In circular letter, information like price, quality, utility,
place of availability etc. are mentioned in details that make people more conscious about
the product.

5.4 Kinds of Circular Letter

Circular letters are prepared for circulating business and non business messages. Thus,
it seems that circular letters can be of the following two types:

1. Trade Circular Letter: When a circular letter is prepared and distributed for circulating
any business related messages, it is known as trade circular letter. Its main objective is to
circulate business information like, launching new business, opening new branch or
showroom, changing address of business, introducing new product, inclusion, retirement
or death of partners etc.

2. Non-Trade Circular Letter: The circular letter that is prepared and distributed for circulating
personal or social information is known as non trade circular letter. The examples of non
trade issues are preaching the political ideology by a political organization, circulating
personal opinion on any matter by an individual etc.
 91

5.5 Features of Circular Letter

A well drafted and persuasive circular letter should possess the following features or
characteristics:

1. Wide Publicity: One of the most important features of circular letter is that it makes wide
publicity of information at a least possible time.

2. Method of Drafting: Circular letter is very simple in nature. It is drafted in a simple language
so that people of various sections can easily understand.

3. Attractiveness: Another dominate feature of circular letter is the attractive and distinctive
presentation of message. In this letter, information is presented attractively so that it can
convinces the readers.

4. Conciseness: A well drafted circular letter is always concise but complete. It expresses
the message using the least possible words.

5. Courtesy: Since circular letter is conveyed to external parties, it presents information

courteously. Circular letter is drafted by using polite and cordial language so that it wins
the readers heart.

6. Persuasiveness: Circular letter is written in a persuasive and motivational way so as to

influence the reader’s decision in favour of the company.

7. Reader’s Interest: Circular letter always focuses on the interest of the readers and presents
trustworthy information.

8. Universality: The format, message and the wording of circular letter should be such that
all concerned parties accept it.

9. Free from Controversy: A business circular letter is free from political, religious, social
or any other controversies.

Situations when circular letters are sent

 Establishment of a new firm or branch expansion of the firm

 Introduction the new product

 Change the premises

92

 Admission and retirement of partners

 Clearance sales and reduction in prices of products

 Conversion of partnership into limited company

 Obtaining Agency

 Authorization of powers

 Issue of Bonus shares

 Circulation of resolutions to be proposed in annual general meeting

 Removal of Business Offer of new shares to the existing shareholders

 Change in the constitution of the firm

 Change of address or title

Merits of Circular Letters

 It is less expensive

 Information can be conveyed to hundreds of customers and suppliers

 It can be read at more convenient time

While drafting the circular it must convey the correct information and inspire the readers.
It must be pleasing and have a personal air about them. The circular letters are cyclostyled and
either the signature or facsimile is affixed.

Trade Circular Letters

It is the form of advertising . The seller will write this letter when he wishes to create the
interest in the product in the minds of the buyer personally known to him. The aim of the
circular letter is to solicit the patronage of potential buyer. It may lead to direct sales. This letter
is generally drafted under the following circumstances:

When sales do not increase as per the expectations

To convey the change in the price or quality of the product

 93

When any new service is offered to the customer

To open new market

The principle of AIDA (Attention, Interest, Desire and Action) will be incorporated in the
trade circulars. The circular letter is carefully written, printed or cyclostyled. But now a days
with the personal touch Photostat copies are send.

Qualities of Good circular letters

In view of the fact that a circular letter should be effective and impressive, it must have
the following qualities:

A circular letter should be brief/ short as far as possible, otherwise it may not be read

It should attract/each reader attention in the opening paragraph

It should have a good look appearance

It should be written in the general form and preferably adopting “we “and öur”
appropriate in writing

5.6 Specimen Letters

Circular Letter No. 1.- Announcing the opening of a new branch

Ramkrishan Hari Electronics

12/15 Patel Road
Chennai 600 012

19/ 05/2019

Venkateswara Palace
Varun Market
Bangalore

Dear Sir
94

Having won the appreciation of our customer, we have decided to open a new branch in
your city in the above address. We have all types of electronic items for your home. It will be a
pleasure to assit you in purchase. You will also get specialized service from us for installing the
electrical gadgets at your home. We have a wide selection of goods. It is impossible for use to
prove the worth of our goods and the fairness of their prices unless you decide to give a trial
order. We will be glad to supply you the complete literature after hearing from you.

Yours Faithfully

Varan V

Circular Letter No 2 - announcement of a new business

Dear Sir,

We take pleasure in announcing the opening of a Super Market at ECR, Mayajal Plaza
([Link]. 216). We have taken on initiative to provide 15% discount sale on the inaugural day.
The opening ceremony of the store will take place in the morning at 10.00 am on 13th March,
2019. You are cordially invited.

Thank you,

Yours faithfully

Surana.

Circular Letter No 3 - Announcing the change in premises

Balu Enterprises
15/8, Basement Street
Bangalore

Mr. B.N. Manjunath

48/54, Bilekahalli Main Road

Bangalore 5600056
 95

Dear Sir

We have shifted from Commercial Road to the above address. As the previous premise
was too small many a time it was crowded and hence for the convenient of our customers we
have shifted to the new premises. The new premises have parking facilities, convenient bus
routes, spacious place to reduce overcrowding. To make your shopping pleasant there is a
separate parking And cash sections. Our interior display is attractive. Our telephone number
remains the same. You can call us to our new shop for your family purchase.

Yours Sincerely

Mr. B. Manish

Circular Letter No 4 - Change of Address

Dear Sir,

We take great pleasure in informing you that we have shifted to larger premises at Phoenix
Mall from 14th September 2018. The shift is due to the fact that the site is in the heart of the city
and the transport system is quite good. We are sure to serve you better from this place.

Thank you,

Yours faithfully

Robert.

Circular Letter No 5 - Announcing The price reduction

Balu Enterprises
15/8, Basement Street
Bangalore

Mr. B.N. Manjunath

48/54, Bilekahalli Main Road
Bangalore 5600056
96

Dear Sir,

We are pleased to inform you that we offer you an extraordinary reduced price for Diwali
for all garments. We have latest designs on all sizes, and you will find it is a land of dreams.
The reduction sales begin from 2nd September and ends by 30th November this year. Our shop
will kept open on Sundays also for your convenience. A special offer on 20% reduction from the
regular prices will save your money. Hurry up as the delay might disappoint you. Visit us at the
earliest and make your shopping a pleasure.

Thanking you

Yours Faithfully

R Rakesh

Circular Letter No 6 - Introducing New Product

Ram Industries
48/5 Jaya Nagar 4th Block
Bangalore 56

18 th June 2019

Sita Enterprises
18/17, Ranga avenue
Chennai 600 041

Dear Sir,

Economical, improved technology and scented breeze are the three reasons for buying
our cool breeze split A/c for your lovely sweet home. We have adopted Japan technology and
you will find the difference when you install at your house. We offer you free home delivery and
two year free service to our customers. We are noted for our after sales services and you need
not have any second thought in buying our product.

We have enclosed the price list and catalogue. It is indeed after prolonged experiments
that we have been able to offer this product to our customers. In case if you place orders for
 97

more than one A/C we offer you 10% discount and this initial offer is granted only up to the end
of this month. Kindly avail this offer and feel happy, as your satisfaction is outstanding satisfaction.

Yours faithfully

R. Rakesh

Encl: Price list

Catalogue

Circular Letter No 7 - Admission of a New Partner

Ramkishore Company
15/7, Arun Street
Ahmadabad

18th September 2019

Jai Traders Company Ltd

Jawahar Street
Indore

Dear Sir

We have decided to expand our business; hence we have decided to admit Mr. Arunachala
as our partner. He has been closely associated with us for the past fifteen years. He has very
good experience in this line, therefore prove to be of immense value to us and will enable us to
extend our business and render better service. We are confident that Mr. Arunachala will help
us to improve our business. We trust you will continue to favour with your valued patronage as
before.

Thanking you

Yours faithfully

R. Sabarirajan
98

Circular Letter No 8- Announcement of Special Discount Offer

Raj kamal Traders

48, J K Street

Chepauk Chennai

Date : 14th August 2019

Dear Customer,

This is to announce our 25% special discount offer that we are making on all orders for
the following items for the month of August to October which are shirts, sarees, children wear.
This 25% discount is available on any order set for delivery from 15th August to 31st October
this year only, and is our way of saying thank you for being such a valued customer. We hope
you will take advantage of this offer and will send us your purchase order today.

Thanking you

Kamala

Propertior

Circular Letter No 9 – Announcement for change of name of the business

Amar Products Limited

452, Patparganj Industrial Area, New Delhi

Dear Customers

As our new letterhead indicates, we have recently changed the name of our business
from Amarnath Products limited to Amar Products Limited. There has been no change in
management and we will be providing the same products and fine services on which we have
built our reputation in the industry. Thank you for being one of our valued customers. We
appreciate your co-operation in this matter.

Thanking you

Managing Director
 99

Circular Letter No. 10 – Announcement of New address

RT Industries
Jaya Nagar Bangalore 45

Dear Friend

RT Industries is pleased to announce the additional of a new location for your convenience

Our address is

200, Midland Highway Road

Bannnerghatta Road

Bangalore 5600076

Telephone 080-25222522

Thanking you

Managing Director

Check Your Progress

1. What is a Circular Letter?

2. List out the objectives of the circular letters

100

3. Mention any two advantages in writing the circular letters

5.7 Summary

When the businessman has to communicate some message to a large number of

customers and suppliers, the business organisation uses circular letters. The circular letters
carry the message to a large number of persons at one time. The message to be carried by a
circular letters is the same for all persons. Circular letter s are unsolicited letters. To make it
effective these letters must be drafted in an attractive style and appropriate tone. During the
course of business, occasions will arise to send the circular letters. When the sender wants to
communicate to a large public they can advertise in newspaper or journals. Circular letter is
one of the oldest types letter. The objectives of circular letter are many folds. Generally, circular
letter passes business related information to a huge number of readers. However, it may also
circulate non-business information. Circular letter is drafted and distributed for attaining three
sets of objectives: business objective; personal objective and social objective. Circular letter
circulates information relating to a company, its products and services etc. To a large number
of people at a time. When a circular letter is prepared and distributed for circulating any business
related messages, it is known as trade circular letter. A well drafted circular letter is always
concise but complete. It expresses the message using the least possible words. In view of the
fact that a circular letter should be effective and impressive, it must have the following qualities
like A circular letter should be brief/ short as far as possible, otherwise it may not be read

5.8 Key Words

Circular letters, Discount, change of address, New product introduction

5.9 Review Questions

1. What are the circumstances in which the circular letters will be sent?

2. What are the qualities of Good circular Letters?

 101

3. Draft a circular letter announcing a gift scheme on the occasion of diwali for the least
designs

4. Draft a circular letter announcing the establishment of new branch

5. Write a circular letter announcing the retirement of a partner of your firm

102

UNIT 6
COLLECTION LETTERS

Learning Objectives
After reading this unit, you must be able to:

 Discuss the guidelines for drafting collection letters

 List out the methods of collection

 Understand the stages which the collection letter passes through

Structure
6.1 Introduction

6.2 Guidelines for Drafting Collection Letters

6.3. Features of the Collection Letter

6.4. Types of Collection Letters

6.5. Collection Letter Writing Tips

6.6 Specimen Collection Letters

6.7 Summary

6.8 Key Words

6.9 Review Questions

6.1 Introduction

Collection letters are written to customers who have purchased on credit and not paid
their bill on the due date. If a customer does not settle the account when it is due, the creditor
has to make efforts to collect the dues. The collection letter is also called as “Dunning Letter
“Dun means special notice sent to the debtor to draw their immediate attention to debtors.
These letters are written in series to debtors for the settlement of their account. In recent times,
the problem of bad debt is growing. The collection department is entrusted with the job of
maintaining the accounts of creditors. A collection letter has to do two jobs: get the money and
 103

retain the customer goodwill. In order to do this, the writer needs a good understanding of the
particular customer, knowledge of how the customer usually handles his credit account, and
knowledge of his present circumstances. It is customary that the salesmen make although
enquiry about the buyer before granting credit facilities. The buyer is reluctant to part with the
money for the purchases made. Hence the business firms face with the problem of collecting
over dues and Credit collection. When credit sales takes place the information will be passed
on to the collection department with the copy of the bill. The department maintains proper
records and scrutinize the credit transactions.

The basic principles in the collection of the debts are:

Collect the amount from the customer regularly

Promptly drafting collection letters and send to the buyer regularly

The men in the collection department should be diplomatic

6.2 Guidelines for Drafting Collection Letters

 The tone should be optimistic and positive

 Customers conduct considered while determining the contents of the letter

 It must convince the debtors to his own advantage to pay

 The letter should not be stiff and lifeless

 The collection Letter should not be too brief

 An appeal should be made to his self respect and the advantage of doing the business
with him

 A wrong approach will lead to the loss of the customer

 Different types of customers are : Honest, dishonest, negligent, miserly and aggrieved
This must be kept in mind while drafting the collection letter

 Make straight forward request and do not be apologetic

104

 When the customer business is at its highest peak, apply the highest pressure on him.

 Leave some interval between the collection letters

 Avoid as far as possible legal action against him

 Never send it by post card

Collection Series

It is usually written in series, each successive letter straight in tone and sends in intervals.
The collection letter passes through the following stages:

 Sending statement of accounts

 Reminders

 Enquiry and Discussions

 Appeal and Urgency

 Demand and warning

The actual collection correspondence starts from the stage of sending reminders. The
customers are sent periodically statement of account showing the amount due from him. It is a
notification and he is expected to remit cash according to the terms of payment. When the
reminders do not bring expected result, the firm is desirable to know the legimate reason for
the delay. Efforts are made to get reply from the debtor so that he may be offered assistance to
tide over his difficulties and payment

Other Collection Methods

Telephone call: Telephone is easiest method to collect dues from the customers

Personal call: Wholesalers are contacted to collect the huge debts

Telegram: To fetch the immediate attention of the customers this method is used to
collect the bills
 105

Bills of Exchange: If the amount due not paid before the due date bill of exchange is
drawn for collection through his bankers.

Trade Protection: When there is no action from the debtors details will be sent to the
trade protection department. When there is no reply, the debtors will run the risk of the ill repute
and his name will appear as bad payer in the reports of trade protection societies. Generally,
no businessman will wish to be bad payer in public opinion.

Correspondence: This is the cheapest and easiest from of all methods. It should be
confidential. It is more economical than a personal call.

Right attitude for successful collections

 Any emotional reaction on the part of the debtor may reduce the chances of recovery

 Successful collection depends to on the following factors

 Understanding of Human Nature

 Knowledge of collection policies and laws

 Using persuasive / positive appeals effectively

6.3. Features of the Collection Letter

The collection letters are different from the other business letters.

 Two Parties are Involved : In this type of the letter, there are two parties involved
among which one is the buyer to buy products on credit and another is the seller who
sells product on credit. For payment of dues, such a letter is written by the seller to a
buyer.

 Prime Objective : The prime objective of writing a collection letter is to receive the
payments from the debtors or you can say, customers.

 Written in a Series : Collection letters are written in a series and it starts with the reminder
letter. Later on, this continues with the inquiry letter, appeal letter, urgency letter and
ends with the warning letter.
106

 Main Principle : While writing such a letter you need to understand the main principle of
the letter that is to retain the customer with the company, while receiving your debts.

 Refer to the previous letter : When you write such a series of the letter, then in every
letter do not forget to add the reference of the earlier letter.

 Make use of friendly language : While writing a collection letter you should make use
of the friendly language but be straightforward when it comes to defining motive of the
letter.

 Legal Action

It is always advisable for a seller to send such a letter through the registered post, in
order to avoid unwanted delays.

6.4. Types of Collection Letters

 Reminder Collection Letter : The reminder collection letter is written in a friendly manner.
This letter is written with the assumptions that customer has forgotten to make the
payments or is facing some financial or medical difficulties. You can receive the payments
after sending a couple of reminder collection letters.

 Inquiry Collection Letter : Try to find out whether the customer is facing any extraordinary
circumstances before writing an unforgiving letter. If you are sensitive to certain problems
while collecting debts, then it can make it easy for you to maintain the good relationship
with the customer. In the inquiry collection letter, you can show your willingness to help
the customer. In such a letter, you can give the option of making partial payments.

 Appeal Collection Letter : If your customer is not responding to any of the collection
letters, then you can write the appeal collection letter. In this letter, you can show your
aggressive approach. Maintain fairness and personal pride while making an aggressive
approach.

 Ultimatum Collection Letter : In this type of a collection letter, you can mention the
action that you will take if customer fails to revert back or pay your money. In such a letter
you should add logical and fair statements.
 107

 Collection of Refund Letter : Collection of refund letter is written to collect the refunded
money on any defective product or services or from the bank. It is written by the customer
to the dealer so that he can collect his refunded money. Many a time, it happens that,
dealers/ manufacturers provide their customers with faulty services or product, for which
they demand a refund for te advance payment.

A collection of refund letter should be written formally and with utmost respect towards
the dealer you are writing it to. Tell them about the defect in their product/ services in
detail and what grievances it caused to you. Ask for the refund in genuine and proper
manner, do not be hostile. Choose our words wisely. Give them all the details regarding
purchase date and warranty period of the product that might speed up the refund process.
proof read your letter once you are through it.

 Debt Collection Letter : A Debt Collection Letter or a “Letter of Demand” is written to

inform the subject of a debt i.e his/her payment is overdue and request/ remind him/ her
to make the payment. A deadline for the payment is mentioned and the legal court actions
that would be taken against him/her in the case of failure to make the payment despite
the reminder are also included. Basically, this letter serves two purposes to warn the
subject about the defaulted payment as well as formal evidence that the debt collector
had informed the subject of the situation and following procedures.

6.5. Collection Letter Writing Tips

 First and foremost it is vital to give some extra time to the debtor to arrange funds for the
payment in this letter.

 The tone of the letter should be firm and formal.

 The letter should mention the due date for the payment and also the amount.

 You must mention the repercussions which the debtor may face regarding non payment
and also provide a last date for the payment.

 Once you are through writing the letter, please recheck the same for spelling mistakes or
punctuation errors.
108

Collection Letter Stages

The collection letter passes through several stages like Reminder stage, enquiry- Appeal
Stage and Warning –Threat Stage

Reminder Stage

This stage can be lengthened by increasing the number of reminders and/or the interval
between the reminders. Thr first reminder is sent within a week of the bill or its duplicate copy.
It may be written in the form of the letter. A second reminder may be sent in a week or in a
fortnight; this is a personal reminder that the bill has been rendered, and indicates expectation
that it will be paid soon. The third reminder is more pointed and urges the customer to settle at
the earliest.

Enquiry- Appeal Stage

In this stage the business man ask the customer about the levelof satisfaction that he
had obtained by using the product that he has bought from him for which the amount is due.
The businessman also enquires the customer in case any complaints or the problem with
regard to the product and services offered by the business man for which the amount is due.
The businessman appeals to the customer’s pride, sense of honour and sense of fear to
motivate the customer to pay for it. While enquiring the customer state of affairs , the
businessman must do it tactfully. If some problem affects the business, the customer may be
embarrassed and not willing to tell his creditors. It is useful to assume that the customer is
anxious to be free from the debt. An appealing to self interest may be effective. The success of
the letter using this appeal depends on the fear aroused; the fear of losing credit may move
such debtors to pay.

Warning Threat Stage

When all appeals fails to bring any response from the debtor, the collection series enters
the last stage. The stage is rigid, and can be extended to three modes of letters. The first letter
pleads with the debtor to settle the account and avoid legal action. The second letter fixes the
date for legal action but allows a period of time for the debtor to pay the bill. The last letter
merely tells the debtor that the account has been handed over to the company’s legal head.
 109

6.6 Specimen Collection Letters

Letter no.1 - Reminder Letter

Raj Company Ltd

12/5, NSC Bose Road
Chennai

18th Feb 2019

Vijay Company Ltd

8 Street
Vellore

Dear Sir

Your attention is called for a sum of Rs. 45000 due from you. The amount is lying unpaid
since one month. As you are busy with your production schedules probably this might have
escaped your attention. This letter is written as reminder along with the enclosed statement.

Yours Faithfully

R. Rakesh

Encl: Statement of Accounts

Letter No 2 - Second Letter asking payment

Raj Company Ltd

12/5, NSC Bose Road
Chennai-1

28th Feb 2019

Vijay Company Ltd

8, Vel Street
Vellore
110

Dear Sir

Ref: Statement of Accounts sent dated 18th Feb’

We are at a loss to understand there is no reply regarding your account due for more
than a month. We still value your business and eager to serve you through your credit account
but it depends on prompt payment. Perhaps the delay is due to unexpected reasons and a
personal discussion will help you to find a solution for this problem.

Write to us telling how you propose to settle the accounts. We request you to make an
early payment.

Thanking you

Yours Faithfully

R. Rakesh

Letter No 3- Letter Threatening Legal action

Raj Company Ltd

12/5 NSC Bose Road
Chennai -1

18th Mar 2019

Vijay Company Ltd

8,Vel Street
Vellore

Dear Sir

In spite of our repeated reminders there is no reply from you and your long standing
account has not been attended by you. We cannot wait for your cheque indefinitely like this. If
this state continues, business would come to a standstill and everybody would suffer.
 111

I believe you dislike the process of law as much as we do. It you do not act promptly I will
be compelled to place the matter in the hands of our lawyers. Hope you will not give a chance
for unpleasant state of affairs.

Thanking you

Yours Faithfully

R. Rakesh

Letter No.4 - Reply from the debtor offering terms of settlement

Vijay Company Ltd

Vel Street
Vellore

12th May 2019

Raj Company Ltd

12/5 NSC Road
Chennai – 1

Dear Sir,

We are in receipt of your letter dated 18th Feb and 28th Feb 2019 and the settlement of
accounts for Rs. 45000 against our bill dated April 4th 2019. Please excuse us for having not
settled your account

Due to some personal problems we were unable to send you cash immediately. However
a cheque for Rs. 45,000 is enclosed in full settlement of our account.

Yours sincerely

S. Ram
112

Letter No. 5 - Last Letter of warning when cash is not received

Raj Company Ltd

12/5 NSC Bose Road

Chennai -1

18th June 2019

Vijay Company Ltd

8,Vel Street
Vellore

Dear Sir,

We earnestly regret to say that your account has been handed over to our lawyers for
taking legal action as there is no alternative for us.

All our efforts to receive the cheque have failed for three months. Our accountant has
already asked our lawyers to over the matter to the court. But I have requested them to wait till
the end of this month. Please send the cheque immediately to save yourself from the
consequences of legal proceedings.

Yours sincerely

S. Ram

Letter No 6- Letter Threatening Legal Action

Sabari Traders
Ranganathan Street
Chennai

17th August 2019

Raja Enterprises Pvt. Ltd.,

Jaya Nagar,
Bengalaru
 113

Dear Sirs,

In spite of our repeated reminders there is no reply from you and your long standing
account has not been attended by you. We cannot wait for your cheque indefinitely like this. If
this state continues, business would come to a standstill and everybody would suffer.

I believe you dislike the process of law as much as we do. If you do not act promptly, I will
be compelled to place the matter in the hands of our lawyers. Hope you will not give a chance
for unpleasant state of affairs.

Thank you,

Yours faithfully

[Link]

Letter no. 7 - Reply from the Debtor Offering Terms of Settlement

Raja Enterprises Pvt. Ltd.,

Jaya Nagar,
Bengalaru

10th August 2019

Sabari Traders
Ranganathan Street
Chennai

Dear Sir,

We are in receipt of your letter dated 26th July and 7th and 27th August 2019 and the
settlement of Rs. 1,00,000 against our bill dated 26th July 2019.

Please excuse us for having not settled your account.

Due to some personal problems we were unable to send you cash immediately. However
a cheque for Rs.1,00,000 is enclosed in full settlement of our account.
114

Thank you.

Yours sincerely,

K. Mohan

Letter No 8- Collection letter related to Enquiry Appeal Stage

Ramakrishna Traders

Mylapore

Chennai

Date 14th August 2019

Malathy Enterprises

Adyar

Chennai

Dear Sir

Our letters of the 4th and 6th calling attention to our bill due of Rs. 250000 have not
brought any reply from you. We are afraid that you might have some reason to be
dissatisfied with our products offered to you. If you feel so, please feel free to let us know
and we shall be glad to make a suitable adjustment. We want you to feel sure that you can
buy from us with satisfaction

If on the other hand, you are satisfied with our execution of the order, please send us
the payment so that your account may be fresh for your next order. May we expect your
reply within this week?

Yours Faithfully

Mr. Hari
 115

Manager

Letter No 9 – Collection letter appealing to self interest

Ram Enterprises

J. P. Nagar

Bangalore

Date 15th August 2019

Sita Associates

Jaya Nagar

Bangalore

Dear Sir

We are really uncomfortable about your indifference to our letters about our outstanding
bill of Rs. 500000/- for the goods supplied in March. This delay is not doing any good to your
credit reputation and you know how difficult is to built up a good one. Will you now allow your
credit to be tarnished by just ignoring our requests for payments?

We hope that you will not create an awkward situation by remaining silent even after
receiving this letter. We are expecting your cheque by return of post.

Thanking you

Yours faithfully

Mr. Ram Charan Teja

Manager

Letter No 10 – Collection letter related to Warning and Threat Stage

Geetha Enterprises
116

Cauvery nagar

Bangalore 45

Date 16th August 2019

Reema Traders

Rita nagar

Bangalore 85

Dear Sir

We have written to you repeatedly, calling your attention to your unsettled account of Rs.
1,00,000 but unfortunately have not received any response. We are sorry to inform you that,
unless the account is settled by 31st August2019 , we shall be compelled to place the matter in
the hands of our solicitors.

We hope that you will not force us to take this unpleasant step.

Yours Faithfully

R. Mohan

Manager

Check Your Progress

1. What do you mean by Collection Letter?
 117

2. List out the other collection Methods.

3. Name the different stages the collection letter through.

6.7 Summary

Collection letters are written to customers who have purchased on credit and not paid
their bill on the due date. If a customer does not settle the account when it is due, the creditor
has to make efforts to collect the dues. The collection letter is also called as “Dunning Letter
“Dun means special notice sent to the debtor to draw their immediate attention to debtors.
These letters are written in series to debtors for the settlement of their account. In recent times,
the problem of bad debt is growing. The collection department is entrusted with the job of
maintaining the accounts of creditors. The guidelines for drafting collection letters are discussed.
We have also discussed the methods of collection. A few specimen letters are given for your
reference.

6.8 Key Words

 Reminder Collection Letter

 Appeal Collection Letter

 Ultimatum Collection Letter

 Refund Letter
118

6.9 Review Questions

1. Mention the various stages of collection series

2. “The function of collection is not merely to collect dues, but collect them painlessly”.
Discuss

3. Draft a collection series beginning with formal notification of debt and ending with hint to
legal proceedings

4. Write a letter to a retail store reminding them that they have neither settled their account,
nor replied to your earlier reminders. Offer to take instalment payments to help them to
settle the accounts

5. A letter asking for immediate payment has been sent by mistake to a customer who ahs
already settled his account in full. Write to him apologizing for the mistake

6. What are the different types of collection letter

7. One of your customers has failed to pay his dues in spite of several reminders, Write to
him appealing to his sense of fairness and honour

8. Draft a letter to the customer appealing to the sense of customer’s sense of fairness

9. Draft a letter to Messers Raja Traders firmly requesting payment of a bill of Rs. 75,000000
for the goods delivered some months ago. Make it clear that unless the bill is paid within
a week, legal action might be the only solution.

10. What are the guidelines to be kept in mind while drafting collection letter?
 119

UNIT 7
LETTERS OF APPLICATIONS,
REFERENCE LETTERS AND
LETTER OF RECOMMENDATIONS

Learning Objectives
After reading this unit, you must be able to:

 Discuss the points for drafting the application letter

 Differentiate the resume and bio data

 Highlight about the reference letter and letter of recommendations

 Draft the job application letter, letter of recommendation and Reference letters

Structure
7.1 Introduction

7.2 Application Letter- Meaning

7.3. Types of Job Application Letters

7.4. Resume or Bio-data

7.5 Points which should be Considered While Drafting the Application Letter

7.6 Specimen Copy of the Resume and Letters of Applications

7.7 Reference Letter

7.8 Letter of Recommendation

7.9 Summary

7.10 Key Words

7.11 Review Questions

120

7.1 Introduction

At present there is no job security. Secured jobs are very few in this competitive world.
The need for assessment and evaluation is very high today. A person seeking for job has to
focus on himself. Drafting an application for employment is very essential. The aim of the
drafting the application letter is to help oneself in obtaining the job in the competitive job
market. The applicant should clearly specify his qualifications which includes his academic
qualification and technical qualification, a accomplishments and aims and objectives and
work experience and personal details. Letter of applications for a situation is very important
from a standpoint of unemployed persons seeking jobs. An application letter is a type of the
sales latter by which the applicant sells his services and he is judged by his application.
Hence more time should be allotted while drafting the letter.

7.2 Application Letter- Meaning

According to Quible and others, “A letter of application is a message designed to inform

the reader of your desire for a position in his or her organization and to request an interview for
that position.” A job application letter, also known as a cover letter, should be sent or uploaded
with your resume when applying for jobs. The job application letters you send explain to the
employer why you are qualified for the position and why you should be selected for an interview.

From the above discussion, we can say that a job application letter is a written appeal to
an employer for a position by a job seeker. Application letters must be written from employer’s
point of view. Before writing an application letter the applicant must analyze carefully the job
requirement and his own achievements.

7.3. Types of Job Application Letters

There are two types of job application letter, such as Solicited letters and unsolicited
application letter.

1. Solicited Application Letter: Solicited application letters are written in response to an

advertisement for hiring or recruitment. Here the job seeker knows the vacancy and can
tailor his application as per the requirements of the said post. If you are sending a solicited
 121

application letter, you will usually know what qualifications the organization is seeking. In
this case, highlight the chief qualifications and mirror the requirements specified in the
advertisement. You should grab the attention by focusing on the phase Proven Skills,
sometimes used in the advertisement.

Example:

February 27, 2018

To

The Managing Director,

Anusuya Enterprises Pvt. Ltd.,

57, Anna Salai, Chennai.

Subject: Application for the post of Management Trainee Officer.

Sir,

In response to your advertisement published in The Hindu on February 11, 2018, I would
like to offer my candidature for the above mentioned port. The details relevant to the post are
enclosed herewith my resume for your kind consideration.

I am looking ahead to immediate hearing from you.

Yours sincerely

Emi.H

Enclosure:

2. Resume

3. Photocopies of all academic certificates

4. Two recent passport size photos.

122

2. Unsolicited Application Letter:

Unsolicited applications letter are written at the writer’s own initiative to the organization.
who has not advertised for recruitment. Unsolicited application letter is also called prospecting
letter. But in case of writing an unsolicited letter, you have a better chance of being read and
receiving individualized attention. You can gain attention by focusing on the needs of the
employers and how they will be gained by employing you. An example of unsolicited job
application letter is given below:

Example:

March 1, 2018.

To,

Personnel Manager,

Cognizant Pvt. Ltd.,

Velachery, Chennai.

Sub: Application for a suitable position.

Dear Personnel Manager,

As a graduating senior in computer science at Chennai, I am interested in pursuing my

career in computers. The chambers of Commerce and Industry of Tamil Nadu, Chennai has
given me your firm’s name as a leader in this field.

The enclosed resume indicates my background in computer science and human relations.
Although I am unaware of any position which might be available, I would be able to visit your
organization over our spring break.

I am available daily after 3pm at 95683 48752. I can be reached by mail at the address
above. I would appreciate any effort on your part of contact me.
 123

Yours Sincerely

Madhan.J

7.4. Resume or Bio-data

A resume is a document that summarizes your education, skills, talents, employment

history, and experiences in a clear and concise format for potential employers. The resume
serves three distinct purposes that define its format, design, and presentation:

1. To represent your professional information in writing.

2. To demonstrate the relationship between your professional information and the problem
or challenge the potential employer hopes to solve or address, often represented in the
form of a job description or duties.

3. To get you an interview by clearly demonstrating you meet the minimum qualifications
and have the professional background help the organization meet its goals.

An online profile page is similar to a resume in that it represents your background and
qualifications, and adds participation to the publication. People network get link and connect in
new ways via online profiles or professional sites like LinkedIn. In many ways, your online
profile is an online version of your resume with connections and friends on public display. Your
MySpace and Facebook pages are also often accessible to the public, so never post anything
you wouldn’t want your employer (Current or future) to read, see or hear. This chapter covers
a traditional resume, as well as the more popular scannable features, but the elements and tips
could equally apply to your online profile.

Main Parts of a Resume

Regardless of the format, employers have expectations for your resume. They expect it
to be clear, accurate, and up to date (Bennett, S.A., 2005). This document represents you in
your absence, and you want it to do the best job possible. You don’t want to be represented by
spelling or grammatical errors, as they may raise questions about your education and attention
to detail. Someone reading your resume with errors will only wonder what kind of work you
might produce that will poorly reflect on their company. There is going to be enough competition
124

that you don’t want to provide an easy excuse to toss your resume at the start of the process.
Do your best work at the first time.

Resumes have several basic elements that employers look for, including your contact
information, objective or goal, education and work experience, and so on. Each resume format
may organize the information in distinct ways based on the overall design strategy, but all
information should be clear, concise, and accurate (Simons, W., Curtis, R., 2004).

1. Contact Information

This section is often located at the top of the document. The first element of the contact
information is your name. You should use your full Legal name even if you go by your middle
name or use a nickname. There will plenty of time later to clarify what you prefer to be called,
but all your application documents, including those that relate to payroll, your social security
number, drug screenings, background checks, fingerprint records, transcripts, certificates or
degrees, should feature your legal name. Other necessary information includes your address,
phone number(s), and e-mail address. If you maintain two addresses (e.g., a campus and a
residential address), make it clear where you can be contacted by indicating the primary address.
For business purposes, do not use an unprofessional e-mail address. Create a new e-mail
account if needed with an address suitable for professional use.

1. Objective : This is one part of your resume that is relatively simple to customize for an
individual application. Your objective should reflect the audience’s need to quickly
understand how you will help the organization to achieve its goals.

2. Education : You need to list your education in reverse chronological order, with your
most recent degree first. List the school, degree, and grade point average (GPA). If there
is a difference between the GPA in your major courses and your overall GPA, you may
want to list them separately to demonstrate your success in our chosen field. You may
also want to highlight relevant coursework that directly relate to the position.

3. Work Experience : List in reverse chronological order your employment history, including
the positions, companies, locations, dates, duties and skills demonstrated or acquired.
You may choose to use active, descriptive sentences or bullet lists, but be consistent.
 125

Emphasize responsibilities that involved budget, teamwork, supervision and customer

service when applying for positions in business and industry, but don’t let emphasis become
exaggeration. This document represents you in your absence, and if information is false,
a minimum you could lose your job.

Types of Resume

Sl. Type Function Advantage Disadvantage

No

1 Reverse Reverse chronological Demonstrates a It may be difficult to

Chronological resumes (also called consistent work highlight skills and
reverse time order) history experience.
focus on work history

2 Functional Functional resumes (also Demonstrates skills It is often associated with

called competency-based that can clearly link people who have gaps in
resumes) focus on skills. to job functions or their employment history
duties.

3 Combination A combination resume Highlights the skills you Some employers prefer a
lists your skills and have that are relevant to reverse chronological
experience first, then the job and provides a order.
employment history reverse chronological
and education. work history.

4 Targeted A targeted resume is a Points out to the reader Custom documents take
custom document that how your qualifications additional time,
specifically highlights the and experience clearly preparation, analysis of
experience and skills that match the job duties. the job announcement,
are relevant to the job. and may not fit the
established guidelines.

5 Scannable A scannable resume is Increasingly used to Scanners may not read

specifically formatted to facilitate search and the resume correctly.
be read by a scanner and retrieval, and to reduce
converted to digital physical storage costs.
information.
126

You may choose to include references at the end of your resume, though “references
upon request” is common. You may also be tempted to extend your resume to more than one
page, but don’t exceed that limit unless the additional page will feature specific, relevant
information that represents several years of work that directly relates to the position. The person
reading your resume may be shifting through many applicants and will not spend time reading
extra pages. Use the one-page format to put your best foot forward, remembering that you
may never get a second chance to make a good first impression.

Maximise Scannable Resume Content

1. Use Key Words : Just as there are common search terms, and common words in relation
to each position, job description, or description of duties, your scannable resume needs
to mirror these common terms. Use of nonstandard terms may not stand out, and your
indication of “managed employees” may not get the same attention as the word
“supervision” or “management”.

2. Follow Directions : If a job description uses specific terms, refers to computer programs,
skills, or previous experience, make sure you incorporate that language in your scannable
resume. You know that when given a class assignment, you are expected to follow
directions; similarly, the employer is looking for specific skills and experience. By mirroring
the employer’s language and submitting your application documents in accord with their
instructions, you convey a spirit of cooperation and an understanding of how to follow
instructions.

3. Insert a Key Word Section : Consider a brief section that lists common words associated
with the position as a skills summary: customer service, business communication, sales,
or terms and acronyms common to the business or industry.

4. Make it Easy to Read : You need to make sure your resume is easy to read by a computer,
including a character recognition program. That means no italics, underlining, shading,
boxes, or lines. Choose a sans serif (without serif, or decorative end) font like Arial or
Tahoma that won’t be misread. Simple, clear fonts that demonstrate no points at which
letters may appear to overlap will increase the probability of the computer getting it right
the first time. In order for the computer to do this, you have to consider your audience a
 127

computer program that will not be able to interpret your unusual font or odd word choice.
A font size of eleven or twelve is easier to read for most people, and while the computer
does not care about font size, the smaller your font, the more likely the computer is to
make the error of combining adjacent letters.

4. Printing, packaging and Delivery : Use a laser printer to get crisp letter formation.
Inkjet printers can have some “bleed” between characters that may make them overlap,
and therefore be misunderstood. Folds can make it hard to scan your document. E-mail
your resume as an attachment if possible, but if a paper version is required, don’t fold it.
Use a clean, white piece of paper with black ink; colours will only confuse the computer.
Deliver the document in a nine-by-twelve-inch envelope, stiffened with a sheet of cardstock
(heavy paper of cardboard) to help prevent damage to the document.

7.5 Points which should be considered While

Drafting the Application Letter
 Apply for the post for which one is qualified

 Care, precision should be kept in mind while writing application letter

 There must be no spelling mistakes

 The terms and conditions under which one wishes to join should be stated clearly

 It is advisable to get permission from references before mentioning their names

 The assurances that he will give satisfaction to employer, if selected must be

mentioned

 Age, health, habits etc can be clearly stated

 Request for an interview can be made

 Carefully attach all enclosures that is mentioned in this letter

There are various methods to find the employer such as career centres, network of
personal contacts, classified advertisements, online sources, employment agencies, personal
search agents, webpage profiles, prospecting. While preparing the resume it must include all
information that your cover letter review plus supporting and incidental details. Designed for
128

quick reading, the resume list facts that have been arranged for the best possible appearance.
Conventional job applications are not much in vogue now. Applications are sent as curriculum
vitae or resume in a printed form. Bio data is the statement showing the name of the application
with the respective qualifications

Important aspects of Resume/ Bio data

The applicant must specify his address, telephone number, email id clearly his objective
and goal should be specified

Educational qualification must be stated clearly with the relevant achievements that he
has made which are related to academic and non academic

The Work experience he has, institutions where he served, all the achievements he has
made in the organisation should be humbly stated

His personal data should be given in Software experience. A printed resume is mean to
be sent in hardcopy format through the mail and used in face to face interviews. Generally
printed resume is one or two pages.

7.6 Specimen Copy of the Resume and Letter of Applications

Carolynn W Workman

12/5 Fox Street

Perambur

Chennai 12

chennaiworkman@[Link]

Objective : An entry –level tax accounting position with a CPA Firm

Education

‘Bachelor of Commerce, University of Madras, Dec 2013, Major : Commerce

 129

Emphasis: Accounting

GPA: 3.42 with honours

Accounting related courses work

Financial accounting, cost accounting, corporate accounting, information systems,

taxation, Financial analysis, management accounting, communications and business and
professions

Skills

Assisted in installation of small business computerized accounting system using Tally

and ERP

Prepared Tax returns for individuals in the VITA Program using speciality tax software

Mastered Excel, Tally, Lotus and MS office

Work History

Served as Administrative assistant in the University of Delhi, (2016-2017)

References

1. Mr Ram

Chartered Accountant

Binny associates

Bannerghatta Road Bangalore 56

2. Mr. Rahim

Chartered Accountant

Sita Associates
130

Jaya Nagar 4th Block

Bangalore – 45

Application for the post of cashier

Date March
25th 2019

From

Mr. B.N. Sathya

45, College Road Chennai 4

To

The General Manager

ING VYSYA Bank

Bangalore 560001

Sir,

Sub: Application for the post of cashier

Ref: Your advertisement in Hindu dated March 14th 2019

With reference to your advertisement in Times of India, I wish to apply for the post of the
cashier. I had completed [Link] from Bangalore University and I had also cleared CA
Intermediate Examination four years before. I have been working as cashier in Panal pina
limited since four years. Although I am satisfied with the present job, I have an aspiration to
seek a situation in the bank. I am well acquainted with all the work of the cash department in
the bank.

Please favour me with a personal interview and you can refer to the manager of the bank
where I am working now, for any information regarding my ability and integrity. If I am selected
 131

I assure that i shall be able to improve the system in working in the cash department of your
bank. I am sure that I can inspire personnel working under me with new zeal and sense of
responsibility.

Yours Faithfully

Shri B.N,Sathya

2. Application for the post of accounts Manager

From

Mr. Ragavan

T.P. Mills Road

Coimbatore -5

To

The Manager

Lakshmi Mills Ltd

Coimbatore

Sir

Having heard a from your accountant that there is an vacancy for an Accounts Manager
post in your office. I would like to apply for the same post. I am confident that I can take the
responsibilities of a company’s accounts and maintain it properly. I shall be obliged if I am
given a convenient time for an interview. I had also undertaken the tally course

If I am given a chance I assure you that you would find me diligent and most suitable
for the job in effective execution of the duties

Thanking You
132

Yours
Faithfully

Mr.
Ragavan

Encl: Curriculum Vitae

7.7 Reference Letter

A referee is a person who is ready to vouch for another. The interviews are conducted by
the employer to select suitable candidate for tech job. But the employer would like to know
more information about the selected candidate ability, sincerity and honesty for the position
that he is applied for. Hence the applicants are requested to name in their applications any
person’s name from which reliable information can be collected. Such referees are the heads
of the institutions where the candidates pursued his studies or some responsible member of
the society.

While writing to referee:

Politely draft the letter

It must seek special information about the applicant

The letter to be marked as confidential It will be better to enclose a self addressed

envelope cover

Assurance to be given to the referee that information furnished by him will be treated
as confidential

A letter from a prospective employer to a referee

Jai co ltd

Jaya Nagar

Chennai 600 010

 133

14th March 2019

Shri. Babu Genral Manger

Goving Pvt Ltd

Chepauk

Chennai

Confidential

Dear Sir

Mr. Vijay working as a Cashier in your company has applied for the same in our company.
He has given your name for reference. We have decided to appoint him from 1st November.
But we wish to know about the honesty, sincerity, ability, trust worthiness and general character
before he is appointed here.

We shall be obliged to receive information about him from at the earliest

Thanking You

Yours Faithfully

Mr. Veda Krishanan

7.8 Letter of Recommendation

It is a certificate which testifies the character and qualification of the person in whose
favour it is used. It is a sort of recommendation letter from a respective third party. A reference
is related to a specific case but a testimonial can be used any number of times with applications.
It is generally brief and relates to the character of the person concerned. It is issued either by
the ex employer or by the head of the institutions where he studied

Letter of Recommendation by the employer

134

Ram Textiles Ltd

Guindy Industrial Estate

Guindy, Chennai

4th
May 2018

To whom so ever it may concern

Mr. Raja has been working with us for the past 12 years. It gives me an immense pleasure
to certify him. He is a smart working brilliant scholar capable of discharging his duties diligently.

He is man of integrity, dynamism and commitment. He is certainly an great asset to any

organization he joins. He is fit to be absorbed as an executive and deserves every success in
life

Hari Krishana

Hon. Secretary

Check Your Progress

1. What do you mean by Application Letters?

2. What is Reference letters?

 135

3. What do you mean by Letter of Recommendation?

7.9 Summary

At present there is no job security. Secured jobs are very few in this competitive world.
The need for assessment and evaluation is very high today. A person seeking for job has to
focus on himself. Drafting an application for employment is very essential. The aim of the
drafting the application letter is to help oneself in obtaining the job in the competitive job market.
The applicant should clearly specify his qualifications which includes his academic qualification
and technical qualification, a accomplishments and aims and objectives and work experience
and personal details. Solicited application letters are written in response to an advertisement
for hiring or recruitment. Here the job seeker knows the vacancy and can tailor his application
as per the requirements of the said post. If you are sending a solicited application letter, you
will usually know what qualifications the organization is seeking. Unsolicited application letter
is also called prospecting letter. But in case of writing an unsolicited letter, you have a better
chance of being read and receiving individualized attention. A resume is a document that
summarizes your education, skills, talents, employment history, and experiences in a clear and
concise format for potential employers. There are various methods to find the employer such
as career centres, network of personal contacts, classified advertisements, online sources,
employment agencies, personal search agents, webpage profiles, prospecting. While preparing
the resume it must include all information that your cover letter review plus supporting and
incidental details. A referee is a person who is ready to vouch for another. The interviews are
conducted by the employer to select suitable candidate for tech job. But the employer would
like to know more information about the selected candidate ability, sincerity and honesty for the
position that he is applied for. It is a certificate which testifies the character and qualification of
the person in whose favour it is used. It is a sort of recommendation letter from a respective
third party. A reference is related to a specific case but a testimonial can be used any number
of times with applications
136

7.10 Key Words

Reference Letters, Applications letters, Letter of Recommendations, Referee, Bio data,

Resume

7.11 Review Questions

1. What are the types of Job application letters?

2. What are the main parts of resume?

3. What are the points which should be considered while drafting the application letter?

4. Draft the application letter for the post of Human resource manager in XXX Info Ltd

5. Draft the job application letter for the post of Company Secretary in the XWW Info Company

6. Draft an application for the post of computer operator in a big firm.

 137

UNIT 8
COMPANY CORRESPONDENCE

Learning Objectives
After reading this unit, you must be able to

 List out the qualities and role of company secretary

 Identify the duties and rights of company secretary

 Draft company correspondence letters

Structure
8.1 Introduction

8.2 Qualities of a Modern Company Secretary

8.3 Duties and Rights of Company Secretary

8.4 Secretarial Correspondence

8.5 Specimen Letter

8.6 Summary

8.7 Key Words

8.8 Review Questions

8.1 Introduction

A company is a voluntary association of persons formed for some common purpose with
divisible parts known as shares and with limited liability. As a body corporate, a company has to
communicate various information to be shareholders including directors, shareholders, offices
staff, debenture holders who are considered as the creditors of the firm, fixed deposit holders
and external bodies like government departments, customers, public, other statutory bodies,
suppliers, competitors and others. A company correspondence is usually done by the company
secretary. With the growth appreciation of the secretary in the company management, he
occupies an unique position in the company’s management. He also acts the confidential officer
138

to the management. An officer to whom the confidential matters can be entrusted. The secretary
of a company occupies a very important position in the administration of the firm. The position
of the company secretary must gain the confidence of the management and is recognized as
the principal officer of the company. The incorporated company must have a company secretary
who is key managerial personnel and chief executive officer. He must be an associate member
of the institute of companies’ secretaries. The job is highly responsible with the high level of
commitment, integrity, motivation and confidentially. The secretary acts as the connecting link
between the persons and the company. He conducts the meetings and responsible for the
recoding the minutes of meetings. He plans for the development of the company through
expansion, diversification, modification and transmission of shares. He is mainly engaged in
raising funds through public issues, public deposits. The company secretary is truly associated
with the formulation and performance of long term and short term policies of the company. The
company secretary acts as the link between company, directors, shareholders and the
government.

8.2 Qualities of a Modern Company Secretary

The Company Secretary as a highly dignified person representing as agent of the Board
of Directors. He acts as a Liaison Officer among the members, employees belonging to the
various department internally and external statutory officers.

He must be good in communicating and corresponding with the Governments both centre
and the state. He must be a man of rectitude and character, must be good and effective in
communication. He must also be a diplomat and quite tactful in handling day to day problems
arising in the companies pertaining to internal departments. He must be very well conversant
with latest sophisticated office equipments and as to how to handle them with ease and comfort.

The Company Secretary must be very thorough with the procedure to observe in company
meetings and board meetings. Wherever the Board of Directors take a tough and rough attitude
against any person, or persons the secretary by counseling the directors, guide them to take a
pragmatic amicable view, which will be good and beneficial for all the persons.
 139

8.3 Duties and Rights of Company Secretary

i. The first and foremost duty of the company secretary is to convene both general and
board meeting on the due dates.

ii. He has to keep the Minutes of the meeting in chronological order date wise for easy
reference. This rule is applicable both to general meetings and board meetings.

iii. Again it is the duty of company secretary or chartered accountant to keep the records,
registers, and returns properly and in order.

iv. A company secretary has a right to attend meetings and record the proceedings. He has
a right to authenticate the genuine nature of the balance sheet and the profit and loss
account of the document.

v. Share certificates of the company shall be signed by two directors out of which one shall
be the Managing Director or whole time Director and the said document must also be
signed by the Company Secretary.

vi. The Company Secretary shall be the competent person to sign the contract and matters
of negotiation with any other person by the company.

vii. The Company Secretary has a right to sign the Annual Return along with the Directors of
the Company. If there is no whole time Company Secretary, a practicing company secretary
[PCS] can sign. The company secretary has also the right to sign the financial statement
with the other Managerial Personnel.

viii. A Company Secretary has a right to appear before NCLT [National Company Law Tribunal]
and NCLAT [National Company Law Appellate Tribunal] on behalf of the company.

ix. The pleading and connected papers under Order 29 rule of the CPC shall be signed by
the Company Secretary.

Duties towards the company: A Company Secretary is required:

i. To make the ‘statutory declaration’ for obtaining the certificate of incorporation and the
certificate to commence business.

ii. To sign the annual report.

140

iii. To sign the balance sheet including the profit or loss account in the case of non – banking
companies.

iv. Besides, the Secretary’s jobs required filing of various returns under the Companies Act.

v. The Company Secretary is also expected to maintain several statutory and statistical
information such as:

- Register of members

- Register of debenture holders

- Register of investments

- Register of charges

- Register of directors

- Books containing the minutes of the director’s and shareholder’s meetings

- Foreign register of members and debenture holders

- The company secretary is said to be the custodian of the ‘Common Seal’ and other
properties.

Duties towards the directors:

The Secretary, being the liaison officer between the directors and the staff and outside
persons should see to that there is no conflict among the persons while taking any decision on
any policy matters. The Company Secretary being employed by the Board of Directors could
be considered as the Agent of Board of Directors, the mouth piece or spokesman of the Board.
His duties towards the Board may be summarized as follows:

i. To see that the Board of Directors, strictly adhere not only to the provisions of laws under
the Companies Act but also to the Memorandum and Articles of Associations.

ii. To transact on behalf of the Board any business or negotiation and to correspond with the
public as a representative of the board.

iii. To issue notices and prepare the agenda for the board of directors meetings including
arranging such meetings and keeping the proceedings of the meetings in the ‘minutes’
book.
 141

iv. To safeguard and preserve all important correspondence, files, records and register of
the Directors of the company.

v. To carry out the directions and instructions of the board of directors.

vi. To draft such reports or submit such documents / statements as may be required by the
board.

vii. To draft Director’s report which is nothing by an explanation of the Profit or Loss
Appropriation Account.

Duties towards the Managerial staff:

In case a company is functioning under the director of Managing Director or Manager,

the relevant duties of a Company Secretary towards such managerial authorities are as follows:

i. To organize the structure and control of the company efficiently and effectively.

ii. To draft agreements, Memorandum of undertakings with the dealers and vendors who
enter into transactions with the company and also with the underwriter, share brokers to
finalize the dealings regarding marketing the unsubscribed shares.

iii. To act as a liaison officer between the Board of Directors and the shareholders and third
party creditors.

iv. To maintain cordial relationship with the Registrar of Companies, Regional Director,
Company Law Board, Stock Exchange, Financial Institutions, banks, local, government
authorities and the Press.

v. To keep the title deeds of the company’s properties and investments in safe custody.

vi. To maintain Registers for Directors’ share holdings and their interest as Directors in other
companies, which is not to exceed 20 companies.

Functions of Social Responsibilities – Duties towards the shareholders

and public:

The entire functions of the company secretary could be analyzed from the point of his
discharge of duties at various states, such as – promotion, incorporation, capital mobilization
and commencement stages.
142

At the stage of formation, ie, prior to the incorporation stage, the secretary has to attend
the following work:

i. He must ensure that industrial license is obtained if the company has to be constituted as
an industrial establishment.

ii. Necessary factory license must also be obtained from the state concerned, particularly
from the Chief Inspector of Factories.

iii. He must ensure that license is obtained for securing electric energy.

iv. He must also obtain clearance from the pollution control authorities by providing proper
treatment plants for effluents, to be discharged from the factory.

v. He must also finalize the purchase of site for the factory or office of the company.

8.4 Secretarial Correspondence

This includes the correspondence with the directors, shareholders, with the debenture
holders who are considered as the creditors of the firm, and with other interested parties.

Correspondence with the Directors

The secretary has to correspond with the directors when the notice of board meeting is to
be sent. When any information to be conveyed under the instruction of the chairman, he has to
communicate with the directors. When the directors do not attend the meeting the report of the
proceedings of the meeting has to be send to him. The secretary has to correspond with the
director before placing a matter on the agenda of a meeting. Sending notices of the board
meetings and reports of the proceedings of such meetings, sending periodical reports of the
proceedings of such meetings and periodical reports of the working of the company are the
routine course of the secretarial section. The secretary corresponds with the directors on the
special occasions, for some information of discussions in a board meeting or when the chairman
wishes to communicate with directors in connection with the board meetings etc. Being
subordinate to the directors, a secretary has to be very tactful and courteous to them while
communicating with them. He should avoid giving and offence to the directors. He should
maintain a polite and impartial attitude so as to influence the director to take at the right time
the appropriate action.
 143

Correspondence with the shareholders

Shareholders are the owners of the companies. The secretarial correspondence with the
shareholders will be with regard to various matters such as given below:

The secretary although a subordinate of the board of directors , he is must coordinate

with the shareholders who are the real owners of the firm. Because secretary has to answer
many secret or unwanted request made by the shareholders, his reply should not only be polite
and courteous but also for firm. Most of the correspondence with the shareholders take the
form of circular letters being sent to them, the notice of the meeting, agenda, reports of the
general meeting, director’s reports, letter offering shares, making calls on shares and sending
dividend warrant etc. With regard to the Dividend, when the share holders are not satisfied
with it, they write a complaint to the latter

When shareholders are not informed regarding the scheme of reorganisation,

amalgamations, reconstruction or any other internal changes in the organization. For the
inspection of the books and registrars, the secretary should be courteous, polite and submissive
and should never make any show of authority. When the shareholders ask for some information
of confidential nature, the secretary should handle the situation tactfully so that neither the
interest of the company is imparted nor the shareholder antagonized. Lengthy and protracted
arguments should be avoided in this type of communication. Legimate and reasonable requests
should be complied with immediately.

Correspondence with office staff

The secretary must be able to take firm and quick decision and so his letters to the staff
employed should carry a note of authority. He should avoid unpleasant words and be tactful in
dealing with union members. When the secretary writes in his official authority, the letters
should be written in the first person singular. But if the secretary refers to the decisions of the
company he may use our or we.

Correspondence with others

This correspondence takes place with the office staff, with the government, with bankers,
with insurance companies, with public and stock exchange, auditors , bankers, Registrar of
144

companies, Government officials and the public. The secretary is expected to use tact and
politeness and has to be brief and to the point in writing to such people. Particularly, while
corresponding with the Registrar and the government departments, he must make a proper
selection of words so that he does not cause any legal complications for the company.

8.5 Specimen Letter

1. Letter giving particulars of a board meeting to a director who was absent

Procter and Gamble Limited

45, Ram Naidu Street

Parrys, Chennai -1

Mr. Ravishankar

12, Ranga Gardens

Bangalore – 45

Dear Sir

I am enclosing a copy of the minute of the previous board meeting held on 26th Feb 2017
so that you could be well apprised of the proceedings. In particular, I would like to draw your
attention to the item No 1 and 2 in the minutes of the meeting which deals with the purchase of
technology oriented machines. A proposal to replace one of the solar plants this year to be
followed by similar replacements during the next four years was made by Shri Pandey and
seconded by Shri Ram Chand Shrama. They were of the view that it was imperative for use to
undertake complete modernization of solar plants but in view of the difficult financial condition
of the company they suggested a phased programme.

In the beginning, the motion was opposed by many members, who though it rather unwise
to launch a programme that involved such large- scale capital expenditure. Some members
suggested that improvements should be undertaken to push up the sales. At this stage the
Chairman intervened to explain why modernisation has become so essential and how it is the
only effective step to ensure profits. He provided statistical information to show how some
 145

other solar plant units have improved their prospects by modernizing their plants. He also
acquainted the members with the long term financial facilities available from different financial
Institutions.

The Chairman’s remarks brought about a sort of consensus on the need of modernization.
On an amended motion under item No. 5 it was resolved to form a committee of Directors, with
Shri. H. S . Patel as the Chairman, to prepare a detailed report on the modernization programme
and to submit the report to the board within one month’s time.

Other matters discussed in the meeting were of routine nature. Still, if you need any
other information, I would be glad to be of service.

Your proposal to hold the Board meetings on fixed dates of each month merits discussion.
So I am directed by the Chairman to include the matter in the agenda for the next meeting to be
held on 27th May. A notice of this meeting is enclosed in for your information.

Yours Faithfully

Secretary of the Board

2. Letter to a Director who has expressed his desire that a particular subject
should be placed on the agenda of the next meeting.

Johnson and Johnson Company Limited

14, R R Street

Saidapet, Chennai 600 005

14th March 2018

Mr. Ramkrishana

14, South Boag Raod,

T Nagar

Chennai 600 004

146

Dear Sir,

As desired by you in your letter of 14th January the matter regarding the appointment of
Messers Radha shyam And Bros as the purchasing agents has been included in the agenda
for ensuring the board meeting on 24th May.

The financial committee appointed by the board in its meeting on 19th March 2018 is
shortly expected to submit its report which contains interlaid, their suggestion for the issue of
the bonus shares. If the report is received in time, this matter will be included in the current
agenda. In any case, the Chairman wishes to assure you of its inclusion in the board meeting
immediately after the one on 25th March.

I have also been directed by the Chairman to thank you for the suggestion and the
detailed scheme you have given for opening retail branches in important cities

He fully agrees with you that setting up retail branches will reduce the cost of distribution
and enable us to gain perfect control over the channels of distribution. However he feels that
there is great risk involved in the operation of retail branches because of two important factors;
it will call for a considerable change in the staff and office organization requiring many additional
appointments and involving a heavy recurring expenditure on overheads; secondly, the scheme
will encountered stiff opposition from retailers. And if the project fails and the old system is to
be reintroduced, they will probably not cooperate with us or will demand higher commission
and discounts. Of course, these are the Chairman’s personal opinions and he is prepared to
place the matter before the board if you still so wish.

Yours Cordially

Secretary of the Board

3. Letter requesting a director to disclose his interest in a contract

Hindustan lever Limited

14, Anderson Street

Parrys
 147

Chennai 600 001

Mr. Radhakrishana

12, RR Nagar

VV Puram

Chennai 600 020

Confidential

Dear Sir

I have learnt from a reliable source that you may have a personal interest in the contract
with Messers. Raju and Company which is coming up for discussion at the next board Meeting.
I am writing this letter unofficially to tell you that, if such is the case, it will be necessary to
declare the actual nature of your interest before the Board. Otherwise, it would mean a breach
of Sec199 of the companies Act 1956.

You will appreciate that my aim in writing this letter is only to save the resulting
unpleasantness if even through oversight you fail to disclose your interest.

Your reply to this letter will be treated as strictly confidential

Yours faithfully

Secretary

4. Letter requesting a Director to be present at an important Board meeting

Procter and Gamble Limited

2, Ram Street

J P Nagar

Bangalore – 4
148

Dated 18th July 2017

Mr. Manjunath

9, Bilekahalli Main Road

Bangalore – 56

Confidential

Dear Sir

As decided in the Board meeting on the 5th July the tenders were invited from contractors
for the construction of a factory building for our company in Vijaya Nagar, Bangalore. We have
received tenders from different parties one of them being Messers. Naveeen Enterprises of
Vijaya Nagar. These tenders shall be taken up for consideration and final agreement with the
contractor during the forth coming Board meeting on 28th august. I learn that the tender submitted
by the company referred to the above is likely to be considered very favourably and that you
are personally interested in that company.

I am writing to you unofficially just to know whether this is true and if it so, to draw your
attention to section 299 of the companies act 1956. This section requires a director to disclose
his interest to the board. I hope you will appreciate that my aim in writing this to you in order to
avoid the unpleasant situation that would result for you if you did not even disclose your
personal interest in motion. May I assure you that your information in this regard shall be
treated highly confidential

Yours truly

Secretary

5. Letter to a director requesting to disclose some information

Raja traders Limited

45, RR street
 149

Mylapore

Chennai 4

28th August 2018

Mrs. Hemamalini

48, VV Puram

Bangalore – 45

Dear Mam

The next meeting of the board will be conducted on 5th October. The main agenda of the
meeting is to take over Ramkrishana and company at Chennai. You have already informed
that you are a shareholder of Ramkrishan and Company. As per the SEBI guidelines and in the
interest of our company, I request you to disclose your interest in Ramkrishan company, so that
the unpleasant situations can be avoided. I assure you the information given by you will be
confidentially processed by me.

Yours faithfully

Ramesh Krishan

(Secretary)

6. Letter to a bank for opening an account for the company

Ram Textiles Company Ltd

Railway Road

Adyar Chennai 40

Dated 14th April 2019

150

The Manager

State Bank of India

Adyar Chennai 600 020

Dear Sir

Due to the expansion of our business the directors resolved to open another account
in this branch, though we already have an account at Indian Bank, Gandhipuram Branch.
The copy of annual report together with the director’s resolution to open an account in this
branch is enclosed with this letter. You can refer about us from Indian Bank with whom we
have transaction for more than a decade. Please send us the necessary forms for opening
an account.

Encl: Balance sheet Resolution

Yours faithfully

7. A letter to the banker for forwarding the documents to a party in foreign country

Raj Company Limited

Nai Sarak

Hoshiapur

Dated 14th September 2018

To

The Manager

State Bank of India

Hoshiapur Branch

KOlkatta
 151

Dear Sir,

We enclose Herewith:

(i) E.P. Form No. 111145 (in duplicate)

(ii) R?R No. 45726 dated 14th August 2017 (Freight Duly paid)

(iii) Our invoice No. 1760 for Rs. 4000 (8 copies)

Please forward the above documents to Messers Geroge company limited, London through
their Bankers Grindlays Bank against the full a payment of Rs. 4000. Please collect all your
charges from the party. We however request you to place the minimum charge commission as
the party complained that in the last transaction they were heavily billed by you on a net invoice
value of Rs. 1000, the commission charged by you was Rs. 20.00. The amount of the invoice
thus collected in Indian currency is to be credited to our account in your bank under the intimation
to us.

Thank you

Yours Faithfully

Raj Company Limited

8. A Letter to an office staff

Raja traders Limited

VV Road

Bangalore

March 14, 2018

Mr. Krishna kumar

Raja Street

Chennai
152

Dear Sir,

With reference to your representation in writing. It was placed before the directors and I
have been directed by them to reply as follows:

Enhancement of pay: The revised pay scales fixed based on the rise in the cost of living
from the last year. AS the turnover and return has not increased tremendously it is not possible
to revise the scale as suggested by you.

Leave Rules: The leave records reveal that some of the employees are prevented from
taking leave due to the inability to sanction all applications of leave submitted by the staff. But
the management has decided to be flexible regarding the leave rules as per your opinion.

Improvement of staff efficiency: The directors are happy about your suggestions
pertaining to the improvement of efficiency of the staff. Steps will be certainly taken to implement
some of your suggestions.

The company always gives priority to promote the welfare of our employees and will
continue to do so in future.

Yours faithfully

Mr. Rajaram

Correspondence with the shareholders

9. Reply to a shareholder who asks about the progress of the company in future
with a view to increase his shareholding

Procter and Gamble Limited

45, Rajeev Street

Mylapore

Chennai 600 004

14th March 2018

 153

Mr. Rakesh Sharma

12, North Boag Road

T Nagar

Chennai 600 017

Dear Sir,

This is in response to your letter dated 14th june

I appreciate your interest in this company and wish I could give you the desired information.
However, the confidential nature of my position as the secretary restrains me from disclosing
any information that I possess in the course of my duty. Moreover, supplying this kind of
information would be prejudicial to the interests of other shareholders. However, I would like to
tell you that a study of the latest “Report and Accounts “of the Company and Report in the
Economics times can assist you in assessing the future and the prospects of the company.
Your share brokers would also gladly advise you in the matter of investment.

Yours cordially

Secretary

10. Letter to a Shareholder who has complained against your decision not to paid
the dividend despite of good profits

Procter and Gamble Limited

45, Rajeev Street

Mylapore

Chennai 600 004

14th March 2018

Mr. Rakesh Sharma

154

12, North Boag Road

T Nagar

Chennai 600 017

Dear Sir,

Thank you for your letter dated...The year just over has been a landmark of the success
story of the company when you touched a sale of Rs. 750 crores against Rs. 450 lakhs and
earned a profit of Rs. 785 lakhs against Rs. 424 lakhs in the previous year. Hence your dismay
at no dividend declared this year is quite natural and understandable.

You would be able to recall that in the extra ordinary general meeting held on 12th April. It
was marked that the company had embarked on the second phase of expansion. You will be
glad to know that not only the production capacity being doubled but that entire production
process is being fully computerized to ensure strictly quality control. With the introduction of
latest new method of technology, we will not able to satisfy our new customers and enhance
the foreign market share. The whole expansion –modernization programme expected to be
completed before the end of the current financial year is going to cost around Rs. 450 Crores.

It is in these circumstances that the Company has decided to declare no dividend will be
paid to the shareholders. But we are denying you a little now only in later times , surely we will
make payments of the dividends at the large.

The company has great prospects of growing to the greater extent and earn great
market share.

Yours Faithfully

Secretary
 155

11. Reply to a Shareholder who is seeking information about proposed dividend.

Kala Enterprises Limited

84, Gangadeshawara koil st
Pursaiwalkam
Chennai 600 007

Dated 14th May 2018

Mrs. Bhagyavathi

45, Ramesh Nair Street

Chennai 600 004

Dear Mam,

I have received your letter on May 10th 2018. I regret to inform you that the information
about the expected dividend is of very confidential nature. And as an office holder of your
company I am not supposed to reveal to anyone the information obtained by me in the course
of my duties. It is not only in the best interest of your company and therefore of all shareholders
that any such confidential information be made available in advance. However, I should advise
you to consult your share broker who will be able to guide you on your investments. Also the
last report and the Accounts of the company can give you a fairly better idea about the company
prospects and growth.

Yours Sincerely

Secretary

12. An Office order with regard to the Regularity and punctuality of attendance
and maintenance of attendance of Registers

Bhart Heavy Electricals Limited

Bangalore

Date 10th June 2018

156

Office order

Sub: Regularity and Punctuality of attendance and maintenance of Attendance and

Registers

Recent surprise checks in various branches of the company have revealed that there is
considerable late coming and that in some cases, even the standard instructions for ensuring
punctual attendance are not being observed strictly. All Branch Managers are therefore requested
to keep a personal watch on the regularity and punctuality in the divisions and branches under
them and ensure proper maintenance of Attendance Registers. They are specially requested
to ensure that:

1. Arrival and departure times are entered correctly in the attendance Registers

2. Attendance register is sent to the Branch officers exactly at 10.20 a.m

3. Those Arriving after 10.20 a.m mark their attendance in the presence of the Branch Officer
and

4. Lunch break is not extended beyond 30 minutes

The instructions may be brought to the notice of all concerned for strict compliance.

(XYZ)

General Manager

Bharat Heavy Electricals

To all branch Mangers

A Managing Director is concerned by the wastage of time by the workers and want to
install a clocking in and out machines to record time spent by the workers on duty. He issued
a memo to the personnel manager s of his company seeking their opinion on this issue in the
following form:

Memorandum

Date: 24th April 2015

 157

To: Divisional personnel Managers

Subject: Clocking-in-machines

There have been a number of comments about the amount of time being wasted with
extended lunch breaks in our company. I do not want to sound as though I am against breaks.
In principle; indeed our consultants have emphasized how important and efficiency in promoting
such interruptions can be if you want an effective and motivated staff. But we must keep a
check on working hours and clocking in machines for offices staff do exist. We can expect little
opposition to the idea if we are not careful. In any case, we are thinking of putting in clocking in
machines for all clerical grades; please send me a report.

13. Specimen of office circular

PSG India Pvt Limited

New Delhi

Circular No. FD/03/2018/9

To all employees

Date: 25th August 2018

It is an appeal to all the employees to contribute from their salary, whatever they can to
the Gujarat Relief Fund for rehabilitation of people who have suffered from the earthquake in
Gujarat. Any contribution from salary to this fund is entitled to 100% tax deduction. Any employee
who want to contribute so may contact Mr. Saliesh from finance department from 4pm to 6pm,
Monday to Friday

Arvind Sharama

Finance Manager
158

14. A letter applying for Import Quota

AVM Export Trading company

48, Richee Street, triplicane Chennai 600 005

The Controller of Imports and Exports

Government of India
Chennai

Ref: Licence for Imports

Recently our firm has successfully concluded negotiations with a few West Dutch based
buyers for machinery manufactured by us. According to their specifications we require certain
components and accessories that are available from American suppliers. The details of these
articles are given in the enclosed statements

We, therefore request you to issue us an import licence for Actual users for the current
year and also grant foreign exchange worth 6800 US Dollars

We have also enclosed a statement showing the details of the quantity and the value of
various articles imported by us during the 12th months preceding 1st April 2020

Yours faithfully

Encls: Two statements

15. Application to stock exchange for enlistment of securities

EEE Appliances Limited

14, Patel Street
Perambur
Chennai

14th July 2019

 159

The Secretary
Madras Stock Exchange Limited
Chennai

Dear Sir

The above company was incorporated on 16th September for the production and distribution
of electrical home appliances. The company has planned to enter the Capital Market in the
month of October. As per the Resolution of the Board of Directors, I am now enclosing an
application for permission to quote the Equity and Preference shares of our company on your
stock exchange. A cheque is enclosed to cover the necessary fees. I am also enclosing the
following documents for your convenience

1. One copy each of the Memorandum and Articles of association

‘2. One copy of the prospectus intended to be issued

3. A certified copy of the certificate of incorporation

Kindly arrange for the consent of the Directors of the stock exchange at an early date.
Any other information, if necessary shall be given gladly.

Yours faithfully

Encl: Five as mentioned above

16. Letter to the shareholder about the transfer of shares

Raja Traders
RR Road, Chennai

May 4th 2016

Mr. Ravikrishna

Raja Street
160

Chennai

Dear Sir

We received your letter regarding the transfer of shares between your children. We have
some formalities to transfer the shares and it cannot be freely transferred. It is obligatory that
an instrument of transfer is presented to the company duly filed in along with the share certificate.
Then the instrument will be executed and the shares will be transferred to your son and daughter.
It is mandatory that the process will be completed within one month. Please forward the
instrument of transfer duly signed to enable us to take immediate action.

Yours faithfully

Mr. R. Rajesh

17. Letter for the allotment of bonus shares

Ravi traders limited

VV Road, Chennai

March 14th 2016

Mr. Rajesh khanna

Raja Street

Chennai 600 001

Dear Sir,

I am happy to inform you that the company has decided to issue bonus shares as requested
by you. The company has earned high returns this year. Hence the board of directors decided
to issue one bonus shares for every four shares held by you. This was discussed in the AGM,
and a resolution was passed in this regard. As you were not present for the meeting I am
informing you.
 161

Yours Faithfully

Mr. R Prathap

(Secretary)

18. Letter intimating the change in registered office of the company

Raja traders Limited

45, Rameshwaram Road

Chennai

March 11th 2019

Mr. Ravikumar

Raja Street

Chennai

Dear Sir

We hereby give you information regarding the change of register office from T Nagar to
Anna Nagar in Chennai as per recent amendment of Companies Act. The present office is
spacious and is located nearer to the 2nd avenue.

Yours faithfully

Mr. Radhakrishanan

(Secretary)

19. Letter of regret for the non allotment of shares

Rashmi Traders

R V Puram, Chennai
162

March 18th 2019

Mr. Rajasekar

Raja Street

Chennai

Dear Sir,

I am sorry to inform you that we are unable to allot you the additional shares you have
applied in February. The directors of the company also regret as they are unable to allot you
the shares. The money deposited by you along with the application is refunded. I have enclosed
a cheque for Rs. 50000 along with this letter. Kindly sign the receipts enclosed along with this
letter and send it to us at the earliest.

Yours faithfully

Mr. P. Prathab

(Secretary)

20. Reminder for the payment of call money

Raja traders Limited

Railways Feeder Road

Chennai

Dated 19th March 2019

Dear Sir

Under the directions of the board I remind you once again the final call money due from
you for Rs. 4000 which you are supposed to pay in January. As per the Articles of our company
you are entitled to pay penalty at 6% interest along with the call money before 30th May.
 163

This is the final notice send by the company and if you fail to pay the money within the
date specified. I am sorry to inform you that the shares will be forfeited. Kindly arrange to send
the call money to avoid the forfeiture of shares.

Yours faithfully

Mr. Praveeen

(Secretary)

21. Notice of Annual General Meeting

PSG India Private Limited

Registered Office: M -7, Gole Market

New Delhi – 110 001

Notice

Notice is hereby given that the 5th Annual General Meeting of the board of directors will
be held at the registered office of the company ie. M-7, Gole Market, New Delhi 110 001, at
11.00 A.M., on Friday, 23rd August 2018 to transact the following business:

1. To adopt the annual accounts together with the auditors report and directors report thereon

2. To declare dividend for shareholders

3. To receive and adopt the director’s report, auditor balance sheet and profit and loss account
for the year ended 30th June 2018.

4. To appoint Amita Pal as new director

5. To appoint the L.N. Bansal & Co, Chartered Accountant as auditors upto the conclusion of
the next Annual General Meeting.

6. To appoint a new auditor for the company and fix his remuneration

7. To transact any other business for which prior notice given by any share holders

NOTE: A member instead of voting himself /herself may appoint a proxy for the
164

purpose of casting vote in the AGM. Such a proxy need not be a member. A proxy in order to
be valid should be lodged with the company at least 48 hours before the AGM.

On behalf of the Board

For PSG India Private Limited

Artilka Goel

Director

To all the members of the Board

Dated 14th August 2018

Place: New Delhi

Check Your Progress

1. What is a company?

2. Who is a company secretary?

3. What are the qualities of company secretary?

8.6 Summary

With the growth appreciation of the secretary in the company management, He occupies
an unique position in the company’s management. He also acts the confidential officer to the
 165

management. An officer to whom the confidential matters can be entrusted. The secretary of a
company occupies a very important position in the administration of the firm. The position of
the company secretary must gain the confidence of the management and is recognized as the
principal officer of the company. The incorporated company must have a company secretary
who is key managerial personnel and chief executive officer. He must be an associate member
of the institute of companies’ secretaries. The job is highly responsible with the high level of
commitment, integrity, motivation and confidentially. The secretary acts as the connecting link
between the persons and the company. He conducts the meetings and responsible for the
recoding the minutes of meetings. He plans for the development of the company through
expansion, diversification, modification and transmission of shares. He is mainly engaged in
raising funds through public issues, public [Link] secretary has to correspond with the
directors when the notice of board meeting is to be sent. When any information to be conveyed
under the instruction of the chairman, he has to communicate with the directors. When the
directors do not attend the meeting the report of the proceedings of the meeting has to be send
to him. The secretary has to correspond with the director before placing a matter on the agenda
of a meeting. Sending notices of the board meetings and reports of the proceedings of such
meetings, sending periodical reports of the proceedings of such meetings and periodical reports
of the working of the company are the routine course of the secretarial section.

8.7 Key Words:

Company, Company Secretary, Shareholders, Directors, public, Meetings

8.8 Review Questions

1. What are the rights and duties of company secretary?

2. Explain about the Secretarial correspondence with directors and shareholders?

3. As a secretary prepare a notice for AGM

4. Write a letter to the banker confirming the verbal agreement regarding the temporary
loan

5. Draft a circular to the employees requesting their cooperation to increase the turnover in
reply to their demand for higher wages
166

UNIT 9
COMPANY CORRESPONDENCE - COMMUNICATION
WITH DEBENTURE HOLDERS

Learning Objectives
After reading this unit, you must be able to

 Understand the meaning of debenture and debenture holder

 List the various types of debentures

 Draft the correspondence letters to debenture holders

Structure
9.1 Introduction

9.2 Characteristic Features of a Debenture

9.4 Nature of Debenture

9.5 Kinds of Debentures

9.6 Summary

9.7 Key Words

9.8 Review Questions

9.1 Introduction

A debenture is a name applied to an instrument issued by company evidencing an

indebtedness which is normally but not necessarily, secured by a charge over company’s
property. Debentures are instrument in return of borrowed funds. These are generally secured
upon the company’s specific property or a floating charge on the assets of the undertaking. It
include debenture stock. It can be issued at par, at a premium or at a discount in accordance
with the provisions contained in the Articles of the company.

Section 2(30) of the Companies Act, 2013 defines ‘Debentures’ as securities which include
debenture stock, bonds or any other instrument of a company which evidences a debt of the
company whether constituting a charge on its assets or not.
 167

A company can issue debentures with an option to convert such debentures into shares
either wholly or partly at the time of redemption of debentures. A company can issue both
secured and unsecured debentures; however, no debentures shall have voting rights. Secured
debentures can be issued upon fulfilling following conditions:

 The date of debenture redemption should not be more than 10 years from the date of
issue;

 The company has to create charge a value which is sufficient for the due repayment of
the number of debentures and interest thereon, on the properties or assets of the company;

 A debenture trustee should be appointed before the issue of prospectus or letter of offer
for subscription of debentures but not later than 60 days after the allotment of the
debentures;

 execute a debenture trust deed to protect the interest of the debenture holders;

 Debenture Redemption Reserve should be formed by the company for the redemption of
debentures.

Debentures are an excellent tool to raise finance by way of debt however in case of
convertible debentures, the private company should ensure that at no point in time the number
of members exceeds 200.

9.2 Characteristic Features of a Debenture

In the light of this definition, the characteristic features of a debenture are as follows:

1. It is issued by a company and is usually in the form of a certificate which is an

acknowledgement of indebtedness.

2. It is issued under the company’s seal. It need not, however, be necessarily under the
company’s seal.

3. It is one of a series issued to a number of lenders. But a single debenture is also not
uncommon. Thus a mortgage of a company’s property to a single individual as security
for a loan is a debenture within the definition given earlier.

4. It usually specifies a particular period or date as the date of repayment. It also provides
for the payment of specified principal and interest at the specified date. But a company is
not debarred from issuing perpetual or irredeemable debentures.
168

5. It generally creates a charge on the undertaking of the company or some parts of its
property; but there may be debentures without any such charge.

6. A debenture holder does not have any right to vote in the company meetings.

9.3 Nature of Debenture

The debentures of a company are a movable property, transferable in the manner provided
by the Articles.

Pre-requisites at the time of issuing debentures

 A company may issue debentures with an option to convert it into shares, wholly or partly
on the condition that it shall be approved by passing a special resolution at the general
meeting.

 No company shall issue any debentures carrying any voting rights.

 A debenture trustee shall be appointed before the issue of prospectus or letter of offer for
subscription of debentures and within a period of 60 days from the date of allotment, a
debenture trust deed is made to protect the rights and interest of debenture holders.

 Where debentures are issued by a company, it shall constitute a Debenture Redemption

Reserve account out of the profits of the company available for payment of dividend and
the amount credited to such account shall not be used by the company except for the
redemption of debentures.

 No company shall issue a prospectus or make an offer or an invitation to the public or to

its members exceeding 500 members for the subscription of its debentures, unless the
company has, before such issue or offer, chosen one or more debenture trustees and
the conditions governing the appointment of such trustees as may be prescribed by the
act.
 169

9.4 Kinds of Debentures

Debentures may be of the following kinds:

1. Bearer debentures : These debentures, also known as unregistered debentures, are

payable to its bearer. These are regarded as negotiable instruments and are transferable
by delivery, an a bonafide transferee for value is not affected by the defect in the title of
the prior holder.

2. Registered Debentures : These are debentures which are payable to the registered
holders. A holder is one whose name appears both on the debenture certificate and in
the company’s register of debentures. The registered holder of the debentures can transfer
them like shares Sec(108), but a transfer to be complete has to be registered with the
company. It should further be noted that these debentures are transferable in the manner
specified in the conditions endorsed thereon. Registered debentures are not negotiable
instruments.

3. Secured Debentures : Debentures which create some charge on the property of the
company are known as secured debentures. The charge may be a fixed charge or a
floating charge.

4. Unsecured Debentures : Debentures which do not create any charge on the assets of
the company are known as unsecured or naked debentures. The holders of these
debentures like ordinary unsecured creditors may sue the company for recovery of the
debt.

5. Redeemable Debentures : Debentures are usually issued on the condition that they
shall be redeemed after a certain period. Such debentures are known as redeemable
debentures. They may be re-issued after redemption in accordance with the provisions
of Sec.121.

6. Irredeemable or Perpetual Debentures : When debentures are irredeemable, they are

called perpetual debentures. A debenture will be treated as irredeemable where either
there is no period fixed for repayment of the principal amount or repayment of it is made
conditional on the happening of an event which may not happen for an indefinite period
170

or may happen only in certain specified and contingent events, e.g., the winding up of the
company. They are not invalid because of the condition that they are made irredeemable
or redeemable only on the happening of some contingency, or on the expiration of a
period, however long, say, 100 years after the issue of debentures (Sec. 120).

7. Convertible Debentures : These debentures give an optional to the holders to convert

them into preference or equity shares at stated rates of exchange, after a certain period.
If the holders exercise the right of conversion, they cease to be lenders to the company
and become members instead.

The convertible debentures may be fully convertible or partly convertible.

8. Non-Convertible Debentures : These debentures do not give any option to their holders
to convert them into preference or equity shares. They are to be duly paid as and when
they mature.

9. Pari-passu Debentures ; Debentures with pari-passu clause are entitled to share the
proceeds of the securities of the company equally amongst themselves irrespective of
the time when these debentures were issued.

10. Ranked Debentures : Debentures without pari-passu clause rank according to the date
of issue or serial number of debentures.

Issue of Debentures at a discount

Debentures can be issued at a discount, unless the Articles provide otherwise. No

formalities, like the ones in case of issue of shares, have to be gone through, the reason being
that the debentures do not form part of the capital of a company. But particulars of such discount
or any allowance or commission in relation to the issue of the debentures are to be filed with
the Registrar for registration. Again, interest payable on debentures may be paid out of capital.
It should, however, be noted that convertible debentures cannot be issued at a discount entitling
the holders to exchange them for shares of par value, as this would be an indirect method of
issuing shares at a discount. If convertible debentures are to be issued at a discount, compliance
with Sec.79 would be necessary.
 171

Procedure to Issue Debentures under the Companies Act, 2013

 Call and hold Board meeting and decide which types of the debenture will be issued by
the company.

 If the Company decides to issue secured debenture the company has to comply with the
condition prescribed in the Rule 18 of the Companies (Share Capital & Debentures)
Rules, 2014.

 In case of appointment of Debenture Trustee, consent shall be obtained from a SEBI

registered Debenture Trustee, who is proposed to be appointed. If debentures to be
issued are Secured Debentures, a Debenture Trust Deed in Form No. SH-12 or as near
thereto as possible shall be executed by the Company in favour of Debenture Trustees
within sixty days of allotment of Debentures.

 In the Board meeting pass resolutions for i. Approval of Offer letter for private placement
in Form No. PAS-4 and Application Forms (in case of Private placement of debentures);
ii. Approval of Form [Link]-5 (In case of private placement of debentures); iii. Approval
of Debenture Trustee Agreement and appointment of a Debenture Trustee (In case of
Secured Debentures only); iv. Appointment of an expert for valuation (in Case of private
placement of debentures); v. Approval of increase of borrowing powers, if required; vi. To
authorize for creation of charge on the assets of the company; vii. To fix day, date and
time for the extraordinary general meeting of shareholders.

 Prepare the draft of

i. Debenture Subscription Agreement

ii. Offer Letter for private placement in Form No. PAS – 4 and Application Forms

iii. Records of a private placement offer in Form [Link]-5

iv. Debenture Trustee Agreement

v. Mortgage Agreement for creation of charge on assets of the company.

172

 Issue notices of extraordinary general meeting along with the explanatory statement.

 Hold extraordinary general meeting and pass special resolution to issue convertible
secured debentures and increase borrowing powers of the company an dto authorize the
Board to create charge on the assets of the company.

 File Form [Link]-4 and PAS-5 in Form No. GNL-2 with the Registrar of Companies.

 File Offer Letter in Form No. MGT-14 with the Registrar of the Companies.

 File copy of Board resolutions, Special Resolution, Debenture Subscription Agreement,

Debenture Trustee Agreement etc in Form No. MGT-14 with the Registrar of Companies.

 File Form [Link]-3 (Return of Allotment) with the Registrar of Companies after making
allotment of debentures.

 File Form No CHG-9 for creation of charge on assets of the Company.

Issue of Debentures, whether redeemable or convertible involves compliance with the

substantive and procedural aspects of law, therefore, documentation becomes very important.

9.5 Specimen Letters

1. Reply to a debenture holder who asks about the progress of the

company in future with a view to obtain the regular payment of interest

Procter and Gamble Limited

45, Rajeev Street
Mylapore
Chennai 600 004

14th March 2018

Mr. Rakesh Sharma

12, North Boag Road

T Nagar
 173

Chennai 600 017

Dear Sir,

This is in response to your letter dated 14th june

I appreciate your interest in this company and wish I could give you the desired information.
However, the confidential nature of my position as the secretary restrains me from disclosing
any information that I possess in the course of my duty. Moreover, supplying this kind of
information would be prejudicial to the interests of debenture holders. However, I would like to
tell you that a study of the latest “Report and Accounts “of the Company and Report in the
Economics times can assist you in assessing the future and the prospects of the company.
Your debenture brokers would also gladly advise you in the matter of investment.

Yours cordially

Secretary

2. Letter to a Debenture holder who has complained against your decision not to pay
the interest despite of good profits

Procter and Gamble Limited

45, Rajeev Street

Mylapore

Chennai 600 004

14th March 2018

Mr. Rakesh Sharma

12, North Boag Road

T Nagar

Chennai 600 017

174

Dear Sir,

Thank you for your letter dated...The year just over has been a landmark of the success
story of the company when you touched a sale of Rs. 750 crores against Rs. 450 lakhs and
earned a profit of Rs. 785 lakhs against Rs. 424 lakhs in the previous year. Hence your dismay
at no dividend declared this year is quite natural and understandable.

You would be able to recall that in the extra ordinary general meeting held on 12th April. It
was marked that the company had embarked on the second phase of expansion. You will be
glad to know that not only is the production capacity being doubled but that entire production
process if being fully computerized ensure strictly quality control. With the introduction of latest
new method of technology, we will not able to satisfy our new customers and enhance the
foreign market share. The whole expansion –modernization programme expected to be
completed before the end of the current financial year is going to cost around Rs. 450 crores.

It is in these circumstances, that the company has decided to declare no interest payment
to the debenture holder. But we are denyinig you a little now only. But in later times, we will pay
the interest at the large amount.

The company has great prospects of growing to the greater extent and earn great market
share.

Yours Faithfully

Secretary

[Link] to a debenture holder who is seeking information about proposed

interest.

Kala Enterprises Limited

84, Gangadeshawarakoil st
Pursaiwalkam
Chennai 600 007

Dated 14th June 2019

 175

Mrs. Bhagyavathi
45, Ramesh Nair Street
Chennai 600 004

Dear Mam,

I have received your letter on May 10th 2019. I regret to inform you that the information
about the expected interest payment is of very confidential nature. And as an office holder of
your company. I am not supposed to reveal to anyone the information obtained by me in the
course of my duties. It is not only in the best interest of your company and therefore of all
debenture holder that any such confidential information be made available in advance. However,
I should advise you to consult your financial consultant who will be able to guide you on your
investments. Also the last report and the Accounts of the company can give you a fairly better
idea about the company prospects and growth.

Yours Sincerely

Secretary

4. Reminder for the payment of debenture call money

Raja traders Limited

Railways Feeder Road
Chennai

Dated 19th June 2019

Dear Sir

Under the directions of the board I remind you once again the final debenture call money
due from you for Rs. 70000 which you are supposed to be paid in January. As per the Articles
of our company you are entitled to pay penalty at 6% interest along with the call money before
31st July.

This is the final notice send by the company and if you fail to pay the money within the
date specified. I am sorry to inform your debentures will be forfeited. Kindly arrange to send
the debenture call money to avoid the forfeiture of debenture.

Yours faithfully

Mr. Praveeen

(Secretary)
176

Check Your Progress

1. What are Bearer debentures?

2. What are Registered Debentures?

3. What are Redeemable Debentures?

9.6 Summary

A debenture is a name applied to an instrument issued by company evidencing an

indebtedness which is normally but not necessarily, secured by a charge over company’s
property. Debentures are instrument in return of borrowed funds. These are generally secured
upon the company’s specific property or a floating charge on the assets of the undertaking. A
company may issue debentures with an option to convert it into shares, wholly or partly on the
condition that it shall be approved by passing a special resolution at the general meeting.
Debentures can be issued at a discount, unless the Articles provide otherwise. No formalities,
like the ones in case of issue of shares, have to be gone through, the reason being that the
debentures do not form part of the capital of a company. But particulars of such discount or any
allowance or commission in relation to the issue of the debentures are to be filed with the
Registrar for registration. Again, interest payable on debentures may be paid out of capital. It
should, however, be noted that convertible debentures cannot be issued at a discount entitling
 177

the holders to exchange them for shares of par value, as this would be an indirect method of
issuing shares at a discount. If convertible debentures are to be issued at a discount, compliance
with Sec.79 would be necessary. In this chapter we had discussed about writing letters to the
debenture holders

9.7 Key Words

Debenture, call money, Registered debenture, interest, Bearer Debenture

9.8 Review Questions

1. What is debenture?

2. What are the chractertics of the debenture?

3. What are the different kinds of debentures?

4. Bring out the procedure to issue the debenture under Companies Act 2013

5. Write a reply to a debenture holder who asks about the progress of the company in future
with a view to obtain the regular payment of interest

6. Write a letter to a Debenture holder who has complained against your decision of not to
be paid with the interest despite of good profits

7. Write a Reminder letter for the payment of debenture call money.

178

UNIT 10
COMPANY CORRESPONDENCE - COMMUNICATION
WITH FIXED DEPOSIT HOLDERS

Learning Objectives
After reading this unit, you must be able to

 Understand the meaning of deposit and which is not a deposit

 Elaborate the meaning of Eligible company and depositor

 Draft the correspondence letters to Fixed deposit holders

Structure
10.1 Introduction

10.2 What is not a Deposit ?

10.3 Who is Depositor ?

10.4 Who is an Eligible Company ?

10.5 Specimen Letters

10.6 Summary

10.7 Key Words

10.8 Review Questions

10.1 Introduction

A company may raise the funds required for various purposes through fixed deposits
from the public. Section 73 to 76 of Companies Act 2013 Section 73 to 76 of the Companies
Act, 2013 deals with Companies (Acceptance of Deposits) Rules, 2014 made under Chapter V
of the Act regulate the invitation and acceptance of deposits

What is a Deposit ?

Section 2(31) of the Companies Act (herein after called the act) defines deposit as under
“deposit” includes any receipt of money by way of deposit or loan or in any other form by a
 179

company, but does not include such categories of amount as may be prescribed in consultation
with the Reserve Bank of India.

10.2 What is not a Deposit ?

Inclusive Definition of the word “Deposit” under Rule 2(c) of Rules made under Chapter
V is as under “Deposit” includes any receipt of money by way of deposit or loan or in any other
form, by a company, but does not include- any amount received from the Central Government
or a State Government, or any amount received from any other source whose repayment is
guaranteed by the Central Government or a State Government or any amount received from a
local authority, or any amount received from a statutory authority constituted under an Act of
parliament or a state legislature; any amount received as a loan or facility from any banking
company or from the State Bank of India or any of its subsidiary banks or from a banking
institution. (iv) any amount received as a loan or financial assistance from Public Financial
Institutions notified by the Central Government in this behalf in consultation with the Reserve
Bank of India, regional financial institutions, Insurance Companies, Scheduled Banks as defined
in the Reserve Bank of India Act, 1934;

(v) any amount received against issue of commercial paper or any other instrument
issued in accordance with the guidelines or notification issued by the Reserve Bank of India;

(vi) any amount received by a company from any other company;

(vii) any amount received and held pursuant to an offer made in accordance with the
provisions of the Act towards subscription to any securities, including share application money
or advance towards allotment of securities pending allotment, so long as such amount is
appropriated only against the amount due on allotment of the securities applied for. If the
securities for which application money or advance for such securities was received cannot be
allotted within 60 days from the date of receipt of the application money or advance for such
securities and such application money or advance is not refunded to the subscribers within 15
days from the date of completion of sixty days, such amount shall be treated as a deposit
under these rules. For the purpose of this rule any adjustment of the amount for any other
purpose will not be treated as refund;
180

(viii) any amount received from a person who, at the time of the receipt of the amount,
was a director of the company. With regard to the Acceptance of Deposits, the director from
whom money is received, furnishes to the company at the time of giving the money, a declaration
in writing to the effect that the amount is not being given out of funds acquired by him by
borrowing or accepting loans or deposits from others;

(b) as advance, accounted for in any manner whatsoever, received in connection with
consideration for property under an agreement or arrangement, provided that such advance is
adjusted against the property in accordance with the terms of agreement or arrangement.

(xiii) any amount brought in by the promoters of the company by way of unsecured loan
in pursuance of the stipulation of any lending financial institution or a bank subject to fulfillment
of the following conditions:-

(a) the loan is brought in pursuance of the stipulation imposed by the lending institutions
on the promoters to contribute such finance; and

(b) the loan is provided by the promoters themselves or by their relatives or by both;

(xiv) any amount accepted by a Nidhi Company in accordance with the rules made under
Section 406 of the Act. For the purposes of this clause, any amount.-

(a) received by the company, whether in the form of installments or otherwise, from a
person with promise or offer to give returns, in cash or in kind, on completion of the period
specified in the promise or offer, or earlier, accounted for in any manner whatsoever, or
Acceptance of Deposits (b) any additional contributions, over and above the amount under
item (a) above, made by the company as part of such promise or offer, shall be treated as a
deposit.

10.3 Who is Depositor ?

Rule 2(1)(d) under Chapter XV defines depositor as under ‘Depositor’ means- (i) any
member of the company who has made a deposit with the company in accordance with sub-
section (2) of section 73 of the Act, or (ii) any person who has made a deposit with a public
company in accordance with section 76 of the Act.
 181

10.4 Who is an Eligible Company ?

Rule 2(1)(e) of Rules made under Chapter V defines eligible company as under : “Eligible
company” means a public company as referred to in sub- section (1) of section 76, having a net
worth of not less than one hundred crore rupees or a turnover of not less than five hundred
crore rupees and which has obtained the prior consent of the company in general meeting by
means of a special resolution and also filed the said resolution with the Registrar of Companies
and where applicable, with the Reserve Bank of India before making any invitation to the
Public for acceptance of Deposits; Provided that an eligible company, which is accepting deposits
within the limits specified under clause (c) of sub-section (1) of section 180, may accept deposits
by means of an ordinary resolution; “Trustee” means the Trustee as defined in section 3 of the
Indian Trusts Act, 1882

10.5 Specimen Letters

1. Closure of Fixed Deposit

Date: 30/03/2019

To,

The Secretary

Hindustan lever Limited

Subject: Request for Closure of FD Account

Dear Sir/Madam,

I am writing this letter with regard to my FD account, which I would like to close due to a
personal financial emergency. I appeal to you to please ensure that the FD is closed as soon
as possible. Also, please credit the proceeds from the term deposit account to my savings
account.

Please find below, the details of my term deposit:

Deposit account number: 4568988877

182

Opening date: 24/10/2015

Type of deposit: Fixed

Name of deposit holder: Mr. Rajan

Request you to kindly process the request at the earliest possible date.

Thanking You,

Yours Sincerely,

Rajan

2. Premature Withdrawal of Fixed deposits

Date : 28/02/2019

From

Mr. Rakesh Sinha

8, Bloomberg Apartments

Bilekahalli

Bangalore

To

The Secretary

Hindustan motors Limited

Bangalore 56

Sub: Request for Premature Withdrawal of FD a/c No 485556785 - Reg.

Dear Sir/Madam,
 183

I had opened a Fixed Deposit a/c No. 485556785 on 12/02/2019 (mention the date on
which you opened the FD) for an amount of R3,00,000/-.

I would like to inform you that I am in urgent financial need and hence would like to
withdraw my FD before the maturity date. Following are the details of my FD:

FD / Receipt [Link] 78586554 Amounting to 3,00,000Date of Maturity 12/08/2020

I would further request you to transfer the interest accrued as on date, to my SB account
number 4565825555 , IFSC Code 60007500121. Please do the needful at the earliest.

Thanking you

Yours faithfully

Your Signature

3. Letter for the Withdrawal of fixed deposit after maturity

To

The Secretary

Vipal Industries Limited

Bangalore 45

Sub: withdrawal of fixed deposit after maturity

Dear Sir/Madam,

I had opened a fixed deposit in your company 14/12/2013 for a period of 6 years. The
details of the FD are given below:

Receipt no :IST 458977777

Date of maturity :14/12/2019

Amount :5,00,000
184

As the maturity date is near, I would formally request you to close the fixed deposit and
transfer the fund along with the interest to the my savings account in HDFC Bank

Savings Account No. 45687899999, IFSC Number – HDF125632000

I would be very much happy to oblige any other formalities required by the company. In
case, the company requires any other clarification, I can be contacted at my mobile number
944655555 or by email [chennairaja@[Link]].

This is for your kind information and necessary action. Thanking you in anticipation.

Yours faithfully,

Mr. Raja

12, Parks St, J P Nagar

Bangalore 56

Date:

Place:

Check your Progress

1. What is a deposit ?

2. Who is depositor?
 185

10.6 Summary

A company may raise the funds required for various purposes through fixed deposits from the
public. Deposit” includes any receipt of money by way of deposit or loan or in any other form, by a
company, but does not include- any amount received from the Central Government or a State
Government, or any amount received from any other source whose repayment is guaranteed by the
Central Government or a State Government or any amount received from a local authority, or any
amount received from a statutory authority constituted under an Act of parliament or a state legislature;
any amount received as a loan or facility from any banking company or from the State Bank of India or
any of its subsidiary banks or from a banking institution. ) any amount received from a person who, at
the time of the receipt of the amount, was a director of the company. With regard to the Acceptance
of Deposits, the director from whom money is received, furnishes to the company at the time of giving
the money, a declaration in writing to the effect that the amount is not being given out of funds acquired
by him by borrowing or accepting loans or deposits from others.

10.7 Key Words

Deposits, company, depositor, Fixed deposits, Government

10.8 Review Questions

1. Write a letter for the withdrawal of fixed deposit after maturity

2. Write a letter for premature Withdrawal of fixed deposits

3. Write a letter for Closure of fixed deposit

186

UNIT 11
CORRESPONDENCE WITH
GOVERNMENT DEPARTMENT

Learning Objectives
After reading this unit, you should be able to:

 Describe about various modes of correspondence in government Departments

 Highlight about the letters to the editors of newspapers

 Draft the letter to the Government authorities

Structure
11.1 Introduction

11.2 Mode of Correspondence in Government department

11.3 Letters to the Editor

11.4 Specimen Letters

11.5 Summary

11.6 Key Words

11.7 Review Questions

11.1 Introduction

Business firm have to correspond frequently with various government agencies such as
Central, State and local government offices, provident fund offices, Railways, Air ways and
Post offices, Income tax department, Customs department. The business man must have
adequate knowledge about the working of the government departments in order to communicate
with them regularly in the day to day business life. The businessman must also be familiar with
various legal framework such as Income tax act, Customs Act, Goods and services Tax act,
Legal framework governing railway authorities, road ways, and airport and post offices.
 187

The correspondent with the government falls under the following heads

Letters to Tax Authorities

This includes the communication with Customs office, Income tax office, Goods and
services Tax.

Letters to Postal authorities

This deals with the communication that takes place with postal office by the public with
regard to some enquiries and complaints and intimation with regard to the change of
address

Letter to Government authorities

This includes the communication that takes place with the railway authorities, police
department, transport authorities, Rent controller and other miscellaneous departments. This
type of communication mainly deals with claims and complaints related to certain issues.

11.2 Mode of Correspondence in Government Department

The major modes of correspondence in Government department takes place in the

form of Memorandum, official notes. Orders, endowments, Notifications, Reminders,
Resolution

Memorandum: A memorandum is a short piece of writing used by the officers of an

organization to communicate within the organization. It is the most common form of written
communication between people or departments or even branch offices of an organization.
Some organization insist that even small events and requests, telephone conversations on
official matters should be recorded in the form of memos.

Official Notes: This is the type of the horizontal communication . This is the mode which
is usually used in the offices when the communication takes place between two managers of
different departments.

Demi Official Letters: They are written by the government officials to another at a personal
level to receive the personal attention of the officer concerned.
188

Orders

The office order may be issued for transfer, extension of probation period of an employee,
refusing leave to an employee, for sitting overtime to complete the work or the distribution of
the work, termination or dismissal of employee and services of the employee and declaring the
other benefits.

Endorsements: Sometimes the letter has to be transmitted from one office to another
office in order to report or to take necessary action. Here either the copy or original can be
forwarded.

Notifications: They are official announcements regarding appointment, transfer,

retirement, transfers, dismissal and resignation of officers etc.

Resolutions: They are issued by the government on matters which has been subject to
the discussion to engaging the attention of the public

Reminders: This is the written when the suitable action must be taken before the stipulated
date.

11.2 Letters to the Editor

All the reputed newspapers must specifically have a column for getting the letters from
the editors. The readers are exclusively given the opportunity to express their view regarding
the recent affairs like election, politics, education system in India, Indian financial system,
Global financial crisis, administration, management etc. People are desirous of giving the
respective expression to some of their strong feelings on various issues, write letters to editors
of news papers and journals requesting to publish various issues happening in the national
and at international level. All letters to the editor must have a covering letter. The letters of
editors are meant to draw greater attention to the readers in general and public opinion on a
particular issue in question. Newspaper do not encourage anonymity in publishing letters.
However on the request they may hold the name and the address of the writer.
 189

11.3 Specimen Letters

Letter to the editor

Letter to the editor regarding “What Lajpat Rai said”

1. What Lajpat Rai Said

The editor

The economies Times

Mumbai

Sir,

With reference to the letter “Partition”by Mugith Mujiaba Ally. I wish to clarify the position
regarding the views of the lalalajpat Rai.

In 1914, in his book Arya Samaj he wrote “The Arya Samaj has to remember that India is
not exclusively Hindu”. In 1927 when Punjab high court acquitted an Arya Samajist publisher,
lajpath Rai declared him to be morally guilty. The problem he felt could not be solved by
sentimental talk and temporary patchwork for symbolic treatment.

He proposed partition only in reply to the demand for separate electorate and separate
Muslim states in India. He wrote “Maulana Hasrat Mohani has recently said that the Muslims
will never agree to India’s having dominion status under British. What they aim at are separate
Muslim states in India, united with Hindu states under a “National Federal Government”

His foresight about partition was vindicated. The alte Kumari Lajjawati asked him if Lahore
would go to Muslim state. He replied “Yes, it may”

Yours truly

A ashwin
190

Letter 2

Raj Kamal Enterprises

Varun Apartments,
Poes Garden Chennai

Dated 14th October 2018

The Chief Superintendent

Southern Railway

Ram Nagar

Bangalore

Dear sir,

As I have been transferred from Delhi all our goods were packed and sent through the
goods train R/R No. 15234. In spite of being carefully packed it is surprising to find some goods
worth Rs. 5,00,000 missing in two parcels. I am sure the parcels were roughly handled in
transit. I request you to arrange for compensation for the damage caused in transit.

Thanking you

Yours faithfully

Vinod Kumar

[Link] requesting refund of excess duty paid

Raj Kamal Enterprises

Varun Apartments,

Poes Garden Chennai

14th September 2015

The Officer
 191

Central Excise Office

Chennai

Dear Sir,

We wish to bring to your notice that the contents of the consignments were declared as
pure silk sarees and taxed accordingly. But the consignments contained Artificial silk sarees
which you can confirm through our invoice,. We have paid Rs. 50000. Please sanction the
refund of Rs. 45000 being the amount of the excess duty paid.

Encl: Invoice

Yours faithfully

Mr. Ramesh Kumar

[Link] to open a stall in the exhibition

Varun Company Limited

Varthaman Avenue, Vijayawada

Dated 14th September 2015

The Mayor

Corporation of Vijayawada

Sir,

Sub: Permission to install a stall in the exhibition

I understand that a trade exhibition will be shortly commenced in our city. Since I am
an industrialist I would like to open a stall in the exhibition for which I require a small space
of 24 inches x 14 inches.

I am willing to remit the rent in advance as soon as I hear from you.

192

Yours faithfully

V varun

[Link] requesting exemption from Income Tax

The Chief Commissioner

Income Tax Department

Vijayawada

Dear Sir,

We have received your demand notice to remit Rs. 25000 as the balance of assessment
for the financial year. During this assessment year, my income fall below the minimum assessable
amount which has been checked by your clerk. I presume that this notice might have been sent
due to oversight.

On the month of November 2015, we had remitted Rs. 10000. Since my income was
below the taxable amount I request you to refund the same to me or get the balance adjusted
in the next assessment year.

I am prepared to produce my books of accounts for your personal examination. An

early action is highly solicited.

Yours Faithfully

V Varun

[Link] Letter

Dr. Hemamalini

Lake view, Mysore

 193

The Vice Chancellor

Venkateswara Unvierity

Bangalore

Dear Sir,

A tentative programme for mountaineering for your students as part of training will be
conducted soon. The aim of this programme is to inculcate the sprit of adventure, adjustability
and exposing the youth to men and manners of diversity. The detail of the programme is
enclosed. I request to depute 20 students and the best mountaineers will be selected for the
international event.

Yours faithfully

Dr Hema Malini

(secretary to the National Mountaineering Committee)

Venkateswara University

No Gen Adm/ 500

Copy Forwarded to : The principals of affiliated colleges of the university

7. Letter to the postal authorities regarding missing of a parcel

Ram krishan Traders

Niveitha apartments, Vijayawada

Dated 14th September 2018

The Post Master

Post Office

Vijayawada
194

Dear Sir,

Sub: Non delivery of VPP

On 2nd August Parcel no 465, goods costing worth Rs. 50000 addressed to Raja Traders
ltd, Chennai – 40 was sent. The parcel has neither been delivered to them nor returned to us till
now. I am worried if it has been missed in transit. Kindly make arrangements to search for the
missing parcel and reply to us at the earliest.

Yours faithfully

Varun V

8.A letter to the Hindu newspaper complaining about the bad road

Vasan

Varun Road, Ahmedabad

The Editor

The Hindu

Ahmedabad

Sir,

Please publish the enclosed letter in Readers views of your esteemed newspaper at
the earliest.

Yours faithfully

Jaya traders

“To end with bad roads”

I regret to say that our corporation has to wake from the sleep. For the last 6 months
Varun Road, Ahmadabad has been almost under repair. The surface is badly broken up by the
 195

heavy rain and on a dark night it is extremely dangerous to pass that way. There are heaps of
the road metal on both sides leaving little place for the vehicles’ to move. The pedestrians have
to walk in the middle of the road or do circus on the heaps of the road metal. I request the
corporation to take immediate action to repair the road without fail.

Yours truly

Jaya Ram

[Link] to the editor regarding the Ghastly Research

The Editor

Deccan Chronicle

Chennai

Sir

A recent report in the Washington Post mentioned that it was possible for a severed
human nhead to be kept alive, able to see , feel and even talk! Most ghastly and gory.
Indeed

The publication mentioned that such an experiment was performed “successfully with
Rhesus monkeys”. One fails to see the utlity of such experiments and also of the pain and
suffering which are inflicted on the sub human creatures. It is such insensate experiments
which make the members of friends of animal resort to be moving to the places, where there
are carried out, or where animal related products are sold.

Yours faithfully

Jayaram

11. Letter for removal of encroachment

Removal of encroachment’
196

The Editor

The Times of India

Chennai

Sir,

Removal of encroachment

A temple has come up on Mangala vinayagar street, mylpaore. It is built along the road
side. It is causing inconvenience to the road users. Will the authorities take steps to remove
the encroachment.

Yours Truly

Mr. G Gopinath

[Link] for the Ban for smashing pumpkins on the Roads

The Editor

The Times of India

Chennai

Sir

“Ban for smashing pumpkins on Roads”

The traditional practice of sacrificing animals has been banned previously by the
government, But the practice of smashing pumpkins in the middle of the roads on new moon
day by traders create nusineace to the road users. Since the pumpkins are applied with kumkum,
even the animals do not touch them. It causes accident and takes away the life of the people.
Will the government be concerned with the lives of human beings?

Yours Truly

Ramya
 197

[Link] to the editor regarding the interlinking of all rivers

The Editor

The economics Times

Delhi

Sir

Sub: Interlink Rivers”

Every year due to the severe monsoon in some palces there is loss of crops, life and
property due to both excessive and minimal rainfall. When the dream project to interlink the
rivers is implemented, no doubt it will minimize the loss. The execution of the project will also
create employment opportunities for the rural poor. This will also attract domestic and foreign
investment which in turn will boost many fold the economy.

The dream project will serve the basic purpose of ensuring the availability of water in
drought hit areas., there by reducing the chances of conflict between states regarding the
water disputes. The project is viable and has to be implemented in national interest.

Yours truly

A Ashwin

14. A letter requesting for exemption from Octroi Levy

Student Corner

Bank Road, Raipur

14th May 2019

The Commissioner

Raipur Municipal Corporation

198

Raipur

Sir

Re: Exception from Octroi Charges

I will be receiving the following two consignments by road within a week or two

1. A parcel from Messers Sultan Chand & Sons, Delhi containing college textbooks on
Business Communcaition, Accountancy and Statistics. The carrier is Transport Corporation Of
India Limited

A Parcel containing “Lekhak”notebooks from Jain Notebook Manufacturing Co, Delhi

carried by Jaipur Golden Transport Company.

The School and College Textbooks are exempt from octroi charges and as per a special
circular from Givernment of Uttarpradesh, no octroi is leviable on the Lekhak notebook and
exercise books. I therefore, request you to kindly issue me an octroi exemption certificate for
the above two consignments so that the parcels can be brought in by the carriers free of octroi

Yours Faithfully

Ms. Radhika Shah

15. A letter applying for Import Quota

The Export Trading Company

Commerical Street, Shivaji Nagar, Bangalore 45

14th July 2018

The Controller of Imports

Government of India

Mumbai
 199

Ref: Licence for Imports

Recently our firm has successfully concluded negotiations with a few West German buyers
for machinery manufactured by us. According to their specifications we require certain
components and accessories that are available from American supplies. The details of these
articles are given in the enclosed statements. We therefore, request you to issue us an Import
License for Actual Users for the current year and also grant foreign exchange worth 6800 U S
Dollars.

We have also enclosed a statement showing the details of the quantity and the value of
various articles imported by us during the 12th months preceding 1st May 2019

Yours faithfully

Mr. Kannan

General Manager

Encls;Two statements

Check Your Progress

1. What do you mean by Resolution?

2. What is a Memorandum?

.3. What is Official Notes?

200

11.5 Summary

Business firm have to correspond frequently with various government agencies such as
Central, State and local government offices, provident fund offices, Railways, Air ways and
Post offices, Income tax department, Customs department. Some organization insist that even
small events and requests, telephone conversations on official matters should be recorded in
the form of memos. Sometimes the letter has to be transmitted from one office to another
office inorder to report or to take necessary action. Here either the copy or original can be
forwarded. All the reputed newspapers must specifically have a column for getting the letters
from the editors. The readers are exclusively given the opportunity to express their view regarding
the recent affairs like election, politics, education system in India, Indian financial system,
Global financial crisis, administration, management etc.

11.6 Key Words

Memorandum, Official notes, Resolution, Government,

11.7 Review Questions

1. Make out an application to the customs department requesting to refund the excess
customs paid

2. Inform a customer that owing to his repeated delay in paying his dues you are compelled
to deal with him on cash basis only.

3. Your partner from Chennai had sent a e-mail about his arrival on particular date but you
have received it after 2 days. Make a complaint to the post master

4. Write the letters to the editors of newspaper on:

a. The evils of street begging

 201

b. Sex discrimaition

c. Child Abuse

d. Increasing road and rail accidents

e. The recent foreign policy favouring the trade

f. The remedies for ticket less travel in train

5. Elaborate about different modes of government correspondence

6. You have sent money order for Rs. 10000 about 10 days before but the addressee has
not received it. Make a complaint to the post master
202

UNIT 12
REPORT WRITING

Learning Objectives
After study this unit, you will be able to:

 Understand the meaning of report

 Describe about the chractertics of the report

 List out the classification of the report

 Elaborate on the drafting the report

Structure
12.1 Introduction

12.2 Meaning of Report

12.3 Characteristics of a Good Report

12.4 Classification of Report

12.5 Drafting the Report

12.6 Types of Report Writing

12.7 Specimen Drafts

12.8 Summary

12.9 Key Words

12.10Review Questions

12.1. Introduction

Reports are important in every organization. Let it be a company, government, body, firm
and others. Reports are helpful way of conveying the messages formally. The reports are
essential without which effective decisions cannot be taken. A business report is based on
data, enquiry. Report means a sum of total of ascertained facts. Report writing is a well-organized
writing process that needs enough skill, research, and details. This report writing process is
 203

usually time-consuming and often requires a detailed research for which the report writer may
have to visit places, meet people and find a solid conclusion at the end of the day to write a
good report.

Use of report writing is to explain a matter or issue and inform higher authorities to help
them and take a right decision or action in regards to the matter or issue.

There is a little room for creativity in the report writing structure as the main focus is to
enlighten the readers about a matter or issue and make the whole thing self-explanatory for
easy understanding. Report writing is the primary tool of media personnel through which they
pass on specific information about an incident or topic.

Apart from the media usage, report writing is required in various sectors like corporate,
government, politics etc. To offer a better understanding, learning about the essence of this
form of writing – “the Report” is very important.

12.2. Meaning of Report

According to C. A Brown”a report is a communication from someone who has some

information to someone who wants to use that information. A foreman, at the end of the day,
reports to the manager the progress of the work undertaken in his supervision. Several reports
are submitted like Wanchoo Committee was appointed to report on the tax evasion and black
money generation. Narasimhan Committee report explains on the working mechanism of Indian
Financial systems.

A report is a methodical, well planned document which outlines and evaluates a subject
or problem, and which may include:

 The record of an order of events

 Explanation of the implication of these events or facts

 Evaluation of the facts or results or research presented

 Discussion of the consequences of a conclusion or course of action

 Conclusions

 References
204

12.3 Characteristics of a Good Report

A good report should have certain important characteristics. They are as follows:

Precision: The report should be precise, clear and to the point, and must be non repetitive
in nature, by adopting an easy and understandable style of presentation and by being exact
rather than being rambling

Accuracy of facts: The scientific accuracy of facts is very essential for a good report.
Since the reports invariably lead to decision making, inaccurate facts may lead to disastrous
decision.

Relevance: While it is essential that every fact includes in a part has a bearing on the
central purpose, it is equally essential to see that nothing relevant has escaped inclusion.
Irrelevant fact make a report confusing, exclusion of relevant facts renders it incomplete and
likely to mislead.

Reader Orientation: A good report is always reader oriented. While drafting a report it is
necessary to keep in mind the persons who are going to read it. A report meant for the layman
will be different from report for technical experts.

Objectivity of recommendations: The recommendations must be impartial and objective

and must be unbiased. It must be based on the objective data rather than on imaginary
calculations. They should come as a logical conclusion to investigation and analysis. Unwanted
matter should be declined or avoided so that the report is forceful and material. You can achieve
objectivity through the following techniques:

1. Make a distinction between facts and opinions-

2. Minimize unsupported judgements and inferences

3. Using bias- free language

4. Using impersonal style

Clarity: Clarity depends on proper arrangement of facts. The report writer should make
his purpose, clear, define his sources, state his findings and finally make necessary
 205

recommendations. The subject matter of the report should be systematically arranged so that
it will definitely clear.

Unbiased Reporting- The report should be free from prejudices, biased , should be
neutral in tone and language.

Time Factor- The report has to be submitted on the schedule decided for it otherwise it
defeats the purpose.

Focus: The report should focus on main issue without straying.

Brevity: The report must deal with the subject matter briefly and directly. Therefore the
proactive in précis writing will help for drafting of reports. A report should not be elaborated but
not achieved at the cost of clarity or cost of completeness.

12.4 Classification of Report

The reports are classified based on methodology namely periodic report, Progress report,
examination report, experimental report, credit report, interpretation report, recommendation
report, statistical report.

Periodic Report: It is a record of activity connecting with routine nature. This is also
called as routine report. This can be submitted either on weekly basis, quarterly basis, half
annually basis or annually. It gives the following details such as short summary of events in
particular period, important changes in administration set up, summary of the turnover,
Summarized account of production, financial statements showing net profits, assets, liabilities
and reserve fund, comparative analysis of achievements. This gives a clear picture of working
of the concern in particular period.

Progress Report: It aims at establishing comparisons to show the progress made during
a particular period. It gives chronological account of the work in progress, achievement and
work yet to be completed. This details with several details such as Introduction of the nature of
the project, a brief account of the progress up to date, a summary of the work done in the
earlier period which has already been reported, analysis of the work to be done in the subsequent
period, important aspects of work yet to be completed, Problems relating to completion of the
project.
206

Examination Report: This analyses the past and present conditions to make
recommendations on what has to be done next. The findings and conclusions will influence the
decision of the reader. Eg. Report on the inspection of the working of the factory or the working
condition of the labour in an area.

Experimental Report- This is based on new theory or device which is now tested or tried

Interpretation Report; It establishes cause- effect relationship. The problems like

increasing cost of production, decline in sales, fire accidents and heavy losses are incorporated
in this report.

Credit Report- This is submitted by the Branch manager of bank to the head office to
enable them to take decision on a loan application This contains several details such as purpose
and scope of the report, method adopted for the collection of data, analysis of the data so
collected, findings and concluding demands.

Recommendation Report – It is also called as analytical report. This type of report may
be persuasive in manner, may be argumentative in tone and urge a definite programme of
action. It is very helpful for policy makers. It deals with several details like the problem covered,
data collected, findings and conclusions, recommendations for a definite programme of actions

Statistical Report: It is made up of financial data, mathematical charts, tabular columns

of figures etc. Eg. Report submitted by costing department, report on introduction of a new
technique of reduction.

From the stand point of legal formalities report are classified as:

 Formal Report

It refers to a report submitted as per the requirements of law or order or by an official having
formal status. This report can further be classified as

1. Statutory Report: It is prepared and submitted as per some specific statute

Eg: Reports sent to all share holders as per section 165 of Indian companies act.
 207

2. Non Statutory Report: This is prepared and submitted to the management to give
information. It helps the management in framing policies, making decisions and controlling
the operations. This report is very helpful when the management is in need of some
important information, on certain occasion.

 Informal Report

It is a mere communication from person to person without any statutory obligation or formal
requirement, procedure being involved.

1. Reports of Committees of Directors: The directors usually appoint standing committee

with 2 or more directors to help the board relating the day to day administration of the
company. Eg: Finance committee, share transfer committee etc.

2. Reports of Ad-hoc Committee: This committee is formed by directors to report on

certain special issues like new factory building, opening of new branch and capital
reorganization etc.

3. Directors Report to share holders of a company: On certain occasions the directors

prepare a separate report and submit to share holders. Eg: Report when entering a new
line of business, negotiation to purchase another company business etc.

4. Report by Executive heads and officers of a company: The managers of different

departments submit reports on the internal management of a business. Eg: The trends
of operation, deviation from the budgets etc.

5. Financial Report: This is prepared by the manager of the finance department and
submitted to directors. They give information relating to the financial structure, and their
effective use of funds.

6. Reports of the Company Secretary: The company secretary submits reports on

complaints from branches, employees’ grievances, threat due to strike, improvements in
working conditions etc.

7. Report on Meetings: The secretary is expected to prepare the report on the proceeding
of meetings and submit it to the members who have not attended the meeting, and to the
press. The report of meeting should be written in third person and in the reported speech.
208

4. From the stand point of the number of persons entrusted to draft the report:

1. Report by Individual: The individual draft such report to pay particular attention to the
order in which the items to be embodied in a report otherwise it will lack attractiveness
and force. An improper arrangement will make the report a risk connected and unintelligible
muddle. The individual should proceed in a systematic manner. Eg: Report by the
production manager. He should draft in the following order:

 The method that is in use at present with its advantage, disadvantage and drawbacks
clearly.

 The estimate of the cost of installation and working cost.

 Comparative analysis of estimated cost of new methods with that of the old methods.

 Considered opinion of the writer and his recommendations.

2. Reports of Committees: This report is expected to be the considered opinion after a

cautious deliberation of the members. Hence it must be drafted in a formal way, signed
by the members of the committee or by the chairman. The following matters are
incorporated while drafting this report:

 Analysis of the object of the committee’s investigation.

 Brief analysis of the proceedings and discussions.

 The names of the witnesses examined and the details of the evidence offered.

 Decision arrived in the form of recommendation for the consideration of the person to
whom the report is addressed.

On the basis of the frequency of issue

Routine Reports- These reports contain a mere statement of facts in detail or summarized
form, without an opinion or recommendation. It is prepared and presented at regular prescribed
intervals in the usual course of business.
 209

Special Reports- They relate to a single occasion or situation and deals with non recurring
problems. A report on the desirability of opening a new branch or on the unrest among staff in
a particular branch are special reports.

Based on contents (Subject matter)

Informational Reports- The committee or individuals collects the information classifies

and present them in the reports. They are usually brief and to the point. They do not give any
recommendations. Conference report, report on training programme are the best examples.

Analytical Report – It is the most complex of all reports. It is all result of an analysis of
the information collected, the result of the detail investigation. These reports are important
tools in the process of decision making. They often deal with recommendations and suggestions
Eg. Report on marketing of a new product

Technical Report: It contains information on technical matters, meant for people working
in that area of technology. It contains lot of technical information and analysis with diagrams,
draft and illustrations. The language can be understood only by the people connected with it.
Eg. A report on success rate of laser surgery

Project Report: It is prepared and submitted by the person who has completed a project.
Usually on the completion of the project, the report is consolidated and submitted. It can be
narrative, informative or analytical. It can be in any areas like economics, commerce,
management, business. Eg. Project report submitted by research scholars or by computer
professionals.

12.5 Drafting the report

An effective report is the result of careful preparation and execution. A through preparation
will save time and make the preparation of the report easier. The following are steps suggested
to write a report. A report writing requires a special skill and procedure. You cannot draft an
effective report unless your methodical in your approach. You can do an excellent job if you
can proceed in phased manner by complying with the following steps involved in drafting the
reports:
210

Define the purpose and scope- The problem or situation to be taken up for reporting
should be precisely defined. Identification of the purpose and scope of the report would help

the writer to design his approach and arrange for the materials to be collected.

Determining the audience: The investigator should find out to whom the report is to be
submitted. It is easy if it’s for an individual. But if the audience is large and varied, the writer

should carefully find out what they know and what they do not know. It is difficult task and

requires a lot of patience and flexibility in approach. In order to make reading your report
easier, think in terms of the reader. Each audience has unique needs because of his education

level, position in the organisation, knowledge of your topic or area, age, biases, preferences

Investigating the sources of information

Investigating the source of information is a kind of spade work. It is to be done right in

beginning. The major sources of data are the internal records like company files. External

records like published materials, research works, private records, government documents,
directors, encyclopaedia etc. Personal observation, telephone interviews and questionnaires

are the methods of collecting the data

Analysis of the data

The data collected must be analysed by Undertaking various calculations in the form of

the percentage, charts, statistical all the materials required from various sources like books,

documents and files, previous reports, published materials, field survey, interview and
independent research. Classify, tabulate and analyse the averages, graphs and diagrams .

Interpretation of the data made by making qualitative appraisal of the factual data with reference

to the problem. An intelligent, cautious and practical interpretations and evaluation of the data
enable to draw the conclusions. Grouping of the information according to some type of heading

and sub heading will be helpful to design the draft.

 211

Preliminary Analysis

One must carefully analyze what exactly to be examined, what facts to be furnished,
what is expected by the reader, what is exact problem to be solved and for whom the report is

meant. The answer to those questions will give a clear picture of the purpose of report. You

should find out the purpose by making the careful analysis of the various issues involved in this
regard. Decide the scope of the report. This will give an idea of the limits of the report, the item

to be incorporated and the items to be let out. Finalize the plan of procedure and make use of

the printed forms. In the absence of the printed forms, divide the problem into main parts and
decide the degree of the importance of each part. After ascertaining the terms of reference

prepare a programme of schedule of enquiry, survey or investigation.

Determine the solution

After analysing the data, effective solutions can be obtained for the problem which is

discussed in detail. Necessary recommendations can also be formulated based on the

interpretations and evaluations

Making the outline: In this outline, the problem is stated, the facts are recorded they are

briefly analysed and logical conclusions is arrived. An outline is not important but should be

found extremely useful in writing the report

Writing the report: Writing the report needs a constant shuttling between the outline

and the notes. First a rough draft of the report is prepared. Then they are revised, pruned and

polished to make the work more effective and meaningful.

The structure of the report – This deals with Introduction, body of the report, final section,
terms of references or objective procedure, findings and conclusions, recommendations if

asked for , appendices.

212

Organization of the report

The report can be organised in 3 ways namely letter form, simple memorandum form or
letter text combination form

‘Letter Form

In the case of brief, informal reports the arrangements followed in business letter is
adopted. This deals with heading, title, date, address, salutation, the body, signature,
complimentary closure. The Body of the letter can divided into Introduction, findings and
recommendations. The introduction deals with the first paragraph of the letter report. This is
the origin of the report. It specifies the authorization, requisition or invitation on the basis of
which the report is being written. This paragraphs is also called as paragraph of transmittal.
The findings deals with findings of the investigations. The recommendations that is logically
follow the findings are given in the last paragraphs of the body.

Simple Memorandum Form

Preparing the report as a short piece of writing by the officers of an organization to

communicate within the organization. It is the most common form of written communication
between people or departments, or even branch offices of an organization. Adopting to the
memorandum form is a simpler way of preparing the report. In certain companies specific
formats are available.

Letter Text combination Form

Generally long reports are prepared in this fashion. If the subject requires elaborate
discussion, then this form is adopted. This report includes 3 major parts

Introductory parts, Body of the report and the back matter.

The introductory parts deal with the letter of transmittal or letter of presentation which is
the routine letter to transmit the report from the writer to the reader. It performs several functions
like it provides permanent record of transfer, shows the date on which report is submitted,
states the names and position of the writer of the report, deals with when and by whom the
report was authorized, invites the reader ‘s comments and suggestions.
 213

1. Title of the Report: This component includes the report’s title and the name of the writer.
Apart from these things, the title can also have a date and the name of the organization
for which the report has been prepared. The cover also has these things but putting them
in details in the title section is mandatory.

2. Table of Contents: This section includes headings and subheadings of the primary text
written. This is a very important portion of report writing. It helps your readers to reach
desired sections in your report in a hassle-free manner. It gives overall view of the report
and facilities locating particular topics in the report. It gives the title, page number of each
chapter.

3. List of illustrations: This list gives the number title and page references of each inferences

4. Abstract and Summary: It is known as Synopsis. An abstract tells in concentrated

form what the report is about, whereas a summary gives the substances of the
report. Here you basically provide the synopsis of the whole report’s primary text and
you can also call it an informative summary. Many times, it is referred as ‘executive
summary’. You can also use descriptive summary which is a simple table of contents.
The format is always decided by the organizations.

Body of the report it contains four elements namely

The introduction, conclusions, recommendations and discussions which is

discussed in detail:

Introduction: This is the most important section of the main text. It provides a starting
point to the reader who is not familiar with the subject of the report. It includes authorization for
the report and terms of reference, Historical and technical background, scope of the study,
limitations and qualifications, methods of data collection and sources, definitions of special
terms and symbols if desirable. The main text always includes three components – introduction,
discussion, and conclusion. Here, you introduce the main text of your report in the most intriguing
a detailed manner so that all types of readers can get your point without much effort.

Discussion: In the discussion section, a report writer discusses the main story of the
report. According to your reader’s convenience, you decide the order of the report’s results.
214

You can also do a result to theory comparison here along with the analysis, evaluation and
interpretation of the data included. Discussion describes the main business part of the report.
Its main function is to present the data in an organized form, discuss their importance, analysis
and the result that flow there from

5. Conclusions: It is used to describe the remarks at the end of piece of writing. It also
refers to the basis of logical inferences drawn and judgements on the basis of analysis of
data presented in the report or the findings of the investigations made.

6. Recommendations: Its function suggest the future course of action. If the report is
prepared by a committee or subcommittee to be presented at a meeting of the general
body for adoption, the recommendation are put in the form of resolutions

The back matters comprises of 5 elements namely

List of references, Bibliography, Glossary, Appendices, Index, Signature

List of references- It is essential to give credit to the work published and unpublished
which the writer has quoted in the report

Bibliography- The work consulted by the writer are given in the bibliography includes
works recommended for further study

Glossary- It is a list of technical words used in the report and their explanations. If it is
going to be read by knowledgeable people who are familiar with the terms, there is no need
to include the glossary in the report

Index- The index is intended to serve as a quick guide to the materials in the reports.
Entries in the Index are made in alphabetical order and cross reference.

Signature- A report must be dated and signed by the persons who have submitted it.

Every organization has a predefined report writing format and hence a writer cannot
remain struck to a specific format for different reports. While writing a formal report, the freelance
writer must keep in mind that the target readers need do not have to do unnecessary research
to take a decision or action after reading the report.
 215

12.6 Types of Report Writing

Everything must be in details. There are many types of report writing for organizations
that are used for various purposes. To format your report to serve varied needs, have a look
at the primary report writing types mentioned below:

1. Formal Report Writing

Formal report writing is pretty complex and time-consuming. Usually, it demands an

immense research, explanation, references, links, lists and may other things to make the primary
point clear enough for the readers.

This type of report writing is usually preferred for an important incident, issue or matter
by big organizations. Formal report writing is generally long and expensive. Formal report
writing has an internationally accepted pattern that includes various components that are
mentioned below.

Cover: The cover of report is something that drives a reader’s attention first. The report’s
cover leaves a huge impression on the reader’s mind and he/she can get an idea regarding the
report’s topic or quality through the cover design. There is a saying – “don’t judge a booked by
its cover” but it is also true – what seems well, sells well and hence the report writer must take
care of the cover of the report with has a major role to depict the report brief.

Title of the Report: This component includes the report’s title and the name of the writer.
Apart from these things, the title can also have a date and the name of the organization for
which the report has been prepared. The cover also has these things but putting them in
details in the title section is mandatory.

Table of Contents: This section includes headings and subheadings of the primary text
written. This is a very important portion of report writing. It helps your readers to reach desired
sections in your report in a hassle-free manner.

Summary: Here you basically provide the synopsis of the whole report’s primary text
and you can also call it an informative summary. Many times, it is referred as ‘executive summary’.
You can also use descriptive summary which is a simple table of contents. The format is
always decided by the organizations.
216

Introduction: This is the most important section of the main text. The main text always
includes three components – introduction, discussion, and conclusion. Here, you introduce the
main text of your report in the most intriguing a detailed manner so that all types of readers can
get your point without much effort.

Discussion: In the discussion section, a report writer discusses the main story of the
report. According to your reader’s convenience, you decide the order of the report’s results.
You can also do a result to theory comparison here along with the analysis, evaluation and
interpretation of the data included.

Conclusion / Recommendation: You can present the summary of the discussion section
here. Here, you mention your findings and recommend the elements to your readers as per
your overall evaluation.

Appendix: In the appendix portion, you can attach the graphs, lists, survey and suchlike
stuff that are related to your report and helps your readers to understand the report
comprehensively.

Reference / Bibliography: You can cite your report’s references in this portion.

Informal Report Writing

This type of report writing is comparatively easier and less time-consuming than the
formal report writing. Here, you need to perform lesser research and it also includes lesser
components. The basic components of informal report writing include- introduction, discussion
and references. Different organizations include more components to this type as per their
requirements.

Informal report writing can also be divided into few types – credit report, feasibility report,
progress report, sales activity report, financial report, personal evaluation and literary report.

All the above mentioned information in regards to report writing and its types must have
helped you, but to understand the process in a better manner, here is a seven step process for
report writing that can help any report writer to master the report writing technique.
 217

From the stand point of legal formalities report are classified as:

 Formal Report

It refers to a report submitted as per the requirements of law or order or by an official having
formal status. This report can further be classified as

Statutory Report: It is prepared and submitted as per some specific statute

Eg: Reports sent to all share holders as per section 165 of Indian companies act.

Non Statutory Report: This is prepared and submitted to the management to give information.
It helps the management in framing policies, making decisions and controlling the
operations. This report is very helpful when the management is in need of some important
information, on certain occasion.

 Informal Report

It is a mere communication from person to person without any statutory obligation or formal
requirement, procedure being involved.

Reports of Committees of Directors: The directors usually appoint standing committee

with 2 or more directors to help the board relating the day to day administration of the company.
Eg: Finance committee, share transfer committee etc.

Reports of Ad-hoc Committee: This committee is formed by directors to report on

certain special issues like new factory building, opening of new branch and capital reorganization
etc.

Directors Report to share holders of a company: On certain occasions the directors

prepare a separate report and submit to share holders. Eg: Report when entering a new line of
business, negotiation to purchase another company business etc.

Report by Executive heads and officers of a company: The managers of different

departments submit reports on the internal management of a business. Eg: The trends of
operation, deviation from the budgets etc.
218

Financial Report: This is prepared by the manager of the finance department and
submitted to directors. They give information relating to the financial structure, and their effective
use of funds.

Reports of the Company Secretary: The company secretary submits reports on

complaints from branches, employees’ grievances, threat due to strike, improvements in working
conditions etc.

Report on Meetings: The secretary is expected to prepare the report on the proceeding
of meetings and submit it to the members who have not attended the meeting, and to the
press. The report of meeting should be written in third person and in the reported speech.

From the stand point of the number of persons entrusted to draft the report:

1. Report by Individual: The individual draft such report to pay particular attention to the
order in which the items to be embodied in a report otherwise it will lack attractiveness and
force. An improper arrangement will make the report a risk connected and unintelligible muddle.
The individual should proceed in a systematic manner. Eg: Report by the production manager.
He should draft in the following order:

 The method that is in use at present with its advantage, disadvantage and drawbacks
clearly.

 The estimate of the cost of installation and working cost.

 Comparative analysis of estimated cost of new methods with that of the old methods.

 Considered opinion of the writer and his recommendations.

2. Reports of Committees: This report is expected to be the considered opinion

after a cautious deliberation of the members. Hence it must be drafted in a formal way, signed
by the members of the committee or by the chairman. The following matters are incorporated
while drafting this report:
 219

 Analysis of the object of the committee’s investigation.

 Brief analysis of the proceedings and discussions.

 The names of the witnesses examined and the details of the evidence offered.

 Decision arrived in the form of recommendation for the consideration of the

person to whom the report is addressed.

12.7 Specimen Drafts

Puja & Company

Chartered Accountants

13th Main Road, Anna Nagar

Chennai.

Audit Report

We have audited the accounts of Jai engineering ltd, Chennai as on March 31,2005.

 To the best of our knowledge and the explanations given to us, as per the Companies Act
2013, we found that the accounts are maintained properly.

 Jai engineering ltd is having a branch at Coimbatore since last year. From the statement
of accounts supplied by the branch, we find the firm is running at a loss and hence the
branch can be closed down immediately.

 While auditing the stock registers of the head office it was found that bulk purchases are
made and money is unnecessarily locked up to the extent of Rs 50000. This type of huge
purchase has to be avoided.

 Balance sheet and Profit and loss account agree with the books of accounts.

 Debtors have been written off as bad debts to the extent of Rs. 5000, the company has
to take effective step to collect the money promptly from the debtors and there by avoid
such bad debts.
220

 In our opinion we feel that the firm is maintaining proper books of accounts as per the
Companies Act of 2013.

Puja & company

Chartered Accountants

2. Report of a Manager on the suitability of some premises (letter form)

The RamChand Bank

R R Road, Jaipur

July 31st 2019

The General Manager

The Ram Chand Bank

Jaipur

Dear Sir,

Sub: Report on suitable premises for shifting Jothipur Branch of The Ramchand Bank

In accordance with your instructions, I have visited our Jothipur branch and carefully
studied the business transactions being carried out there. I do find that Mr. S. S. Agarwal our
Branch Manager, is quite justified in desiring a shift to the better premises.

Space Shortage in the Present Premises

The branch of our bank was opened in the year 1985 when Jothipur was a small town
with the population of 85,000. Ever since, it has fast developed into an industrial city. Jothipur
Fertilsers, a public sector undertaking and a unit of RajKamal Chemicals Limited have started
functioning here. With these factories as the nucleus, a whole industrial complex has come
into existence.

The business of this branch has been steadily growing. It is a fact that it is one of the
most profitable running branches of the Ramchand Bank. But though the present position of
 221

the bank are ideally, they are being found highly inadequate. Every inch of the space available
here has been pushed into the service, with the result that the whole atmosphere appears to
be congested. During the peak hours, the bank presents and unnerving sight. Such an
atmosphere can be hardly considered conductive to efficient business transactions. Besides,
with such discouraging looks the bank can neither attract nor cope with any new customers.

Proposal Alternative Site

Since it is undesirable to move to a distant place, I have concentrated all my efforts on

finding out some building suitable for our growing requirement in the very locality. The bank
Street is one of the biggest shopping complexes of Jothinagar and it is not easy to find any
suitable building here. But fortunately, a building just in our neighbourhood, double the size of
the one we are now occupying and spacious enough to meet our requirements, is falling vacant
next month. Its biggest advantage is its close proximity to our present premises so that if we
shift there, non of our customers will be inconvenienced.

It is a double –storey building will a large hall nearly 20 metre 12 metre and two rooms 5
metre x 4 metre on the ground flow and identical accommodation on the first flow. The large
hall on the ground floor can provide enough space to set up all the counters needed. One of
the rooms can be converted into the Branch Manager’s room. The loans and advances section
can be accommodated on the first floor. A part of the hall on the first floor can be changed into
a room for lockers. The other two rooms can be used for keeping records and storing stationary,
of course, we shall have to bear ourselves the cost of buildings the strong room and the safe
deposit vault as well as of effecting any other changes we deems suitable.

Preliminary negotiations, rentals

I have already had preliminary negotiations with Mr. Shah, the owner of the building. He
is also a valued customer of ours. It appears that he should be willing to rent out the building to
us at monthly rent of Rs. 40000/-. It will initially be leased out to us for a period of five years. I
have verified that the building is free from all encumbrances.
222

Recommendations

The rent of this buildings appeared to be little on the higher side, but in view of its strategic
location, I have no hesitation in recommending that this building should immediately be rented.

Estimates for the proposed alterations are enclosed. A letter of consent from Mr. Shah
offering the building on rental basis for a period of five years will be obtained and sent to you
after we receive your approval to this change.

Yours faithfully’

F A Siddigui

Development manager

3. A sales representative’s periodic report (in the memo form)

Camp: Room No. 8

Agra Hotel, Delhi

To

Mr. A.M. Radhakrishanan

Sales Manager

From

Harbans Singh Sethi

Sales Representative

Subject: The week ending June Report for 14 to 19

Stations Visited: Places in the neighbourhood of Agra: Mathura, Fatepur Sikir, Morena,
Manipur, Jalesar

Orders booked: Rs. 17580 worth of Nylon Stretchlin socks, Murphy super vests and
 223

underwears and Murphy Deluxe ladies nighites and lingerie. Details in the accompanying
counterfoils of the receipts issued and orders booked.

Collection: Rs. 6524 in cash and Rs. 7356 by cheques. The cheques are enclosed. The
cash has been sent by a crossed demand draft as usual.

Business Prospects: Messers. Raj and Sons Agra who are suppliers of school uniforms
to a number of convent and public schools are prepared to place an order with us for 1200 red
and 1500 blue pairs of children’s socks if we could allow them 5 percent above our usual terms.
If our terms suit them, they will purchase their winter requirements of nearly 5000 pull overs
and sweaters also from us. In view of this bulk order, I have promised them 3 percent on my
own and have told them for allowing them 5 percent I shall await your instructions. Our dealings
with Messers Raj and Sons have always been good and I would strongly recommend that we
allow them the terms sought by them.

Next Programme : Tommorow I am leaving for Gwailor and after visiting the important
towns in its neighbourhood I shall be back to Agra by Monday. Your communication may still be
addressed to the Agra address given above

Harbans Singh

4. Report by the company secretary on the inefficient of the staff in the Branch

Secretary

Ramesh Traders, Rajapalyam

The Managing Director

Surya Traders

Madurai

Dear Sir

Sub: Inefficiency of the staff

224

Observations

It is the duty of the company secretary to often visit branch offices and report on the
general complaints for the betterment of the company. I found that Mr. Mohan working as a
supervisor is inefficient and negligent in the following aspects.

Findings

He is not punctual to office and comes daily only by 11.a.m though his reporting time is
10.a.m

He is inefficient in handling the workers

As he is careless in the execution of orders the customers do not get their order in time

There is lack of cordial relationship between the supervisor and the Branch manger

Careless maintenance of office records and inefficient handling of correspondence

Recommendations

The Branch Manager can be transferred

The inefficiency of the staff is due to overwork hence the additional staff can be recruited

The supervisor can be strictly warned to be punctual and careful in executing the orders

Some more transfers is desirable, but it is advisable to effect them in consultation with
the new branch manager.

Yours Faithfully

R. Ramesh

(Secretary)

5. Report to examine the site for a proposed New Factory

Comments
 225

The proposed site is located in an ideal locality

As it is located in an under developed area plenty of labour is available at cheaper cost

We can avail subsidy from the government as it is located in an underdeveloped area

Due to lack of Competition we can be confident regarding the future prospects

Transport and banking facilities are available nearer to the new site

Raw materials can be transported at a cheaper cost

Letter of Transmittal

Ramesh Automobiles LTd

Susan Complex Surat

The Directors

Ramesh Automobiles Ltd

Surat

Dear Sir

Sub: Report on the site for the new factory

We have completed our tour to Surat regarding the ercetion of our new factory, as required
by you as per the resolution passed in the board meeting held on 3rd April 2019. We are
herewith submitting the report as requested by you. We have also enclosed some reports
along with the letter.

Encl: Report on the proposed factory

Plan of the proposed site

Experts report regarding the cost of machine

226

Yours faithfully

S Sujay

Manager

6. Report on the declining sales of the cosmetics

Parrys Cosmetics Limited

45, RR Road, Bangalore

Date 14th July 2019

To

The Directors

Parrys Cosmetics Limited

Bangalore

Gentleman

Sub: Report on the declining sales of our cosmetics

We have carefully examined the various causes of steep decline in the sales of our
cosmetics as desired by you in the resolution passed at the board meeting held on 12 th July
2019. A brief report of our investigations and recommendations is being sent herewith. We
hope that a quick action will be taken on these recommendations so that any further decline is
arrested

Yours faithfully

RR krishan

Chairman

Work done
 227

The quarterly sales report was scrutinized with the sales report of previous two years

The wholesale dealers stocking the cosmetics of our company as well as the retailers
who are in touch with actual consumers are interviewed.

Questionnaires was circulated in order to obtain the views about the company products

Several products like cold cream, hair cream, the talcum powder, the shampoos, the
lipsticks, the nail enamels are carefully analysed by some of chemists of repute in order to
ascertain their quality.

Findings

During the last two years, Gayway cosmetics and Beauty Aids, the two renowned
companies are working based on the foreign tie-ups, and the most modern technology at their
command, have entered the market in a big way. They offer 12 percent discount to their dealers
against the 10 percent discount offered by us. Besides, they offer handsome incentives to
dealers achieving a specified sale target in a given quarter. This motivates the dealers to push
the sales of their products. You might have seen the Beauty Aids Publicity campaign.

Chemical analysis of our cosmetics has proved that our products are not fully suited to
our climatic conditions.

The questionnaire reveals that the consumers are not satisfied with the quality of our
products. Some of them have clearly stated that there has been a deterioration of quality. The
chemists report also point to the unsatisfactory quality of our cosmetics.

Our publicity also leaves much to be desired. We are still following the old modes of
publicity like sending long wordy insertions in the dailies. Our publicity department has not
created to exploit the more effective electronic media.

It was found that this decline was peculiar to our products and there had been no general
slump in the market.

It is evident that in a brief span of two years, our sales have come down to nearly 50
percent.
228

Chemical analysis of our cosmetics has proved that our products are not fully suited to
our climatic conditions.

Recommendations

The first thing to be done is obviously to take care of the quality of our products. It
appears that we shall have to appoint better qualified chemists and subject our cosmetics to
strict quality control

We should give a new look to our products and build a massive publicity campaign to
boost their sales

We should also undertake door to door publicity and sales and offer attractive gifts and
bonus coupons

We should make a review of the sales promotion schemes every three months during
the next year

A copy of the questionnaire circulated among the customers and chemist report on the
quality of our products are enclosed for your reference

Suresh Kumar

Secreatyat

New delhi Feb 28, 2019

Check your Progress

1. Define Report.
 229

2. Bring out the different types of Reports.

12.8. Summary

Constantly business organization conduct meetings like executive meetings, shareholders,

meetings and committee meetings. The basic objectives of meeting are to achieve the goal of
organizations. Meetings may be statutory meetings, and annual general meetings, extra ordinary
general meetings, board of directors meeting and creditors meeting. Report is a sum total of
ascertained facts. A good report must possess characteristics such as clarity, accuracy,
objectivity, brevity and unambiguous language. Reports are classified into 6 types on the basis
of methodology. Legality, number of persons, length, period and content. Report drafting is
discussed at the end of this unit.

12.9. Key Words

Formal Report, Informal Report, Agenda, Meeting, Minutes

12.10. Review Questions

1. Draft minutes of the annual general meeting where dividend was not paid due to lack of
profits.

2. Draft the minutes of the meeting of the student’s council of your college which is held to
decide the progammes for the annual day.

3. Give the meaning of the report.

4. State the characteristics of the good business report.

5. Classify the different types of business report.

6. Write a note on drafting of a report.

230

UNIT 13
REPORTS BY INDIVIDUALS AND
COMMITTEES

Learning Objectives

 After learn this unit, you can able to understand;

 Meaning of Reports prepared by Individuals

 How to draft the report of individual

 Meaning of Reports of Committees

 How to draft the report of the committee

Structure
13.1 Introduction

13.2 Report of Individual

13.3 Specimen of Report of Individuals

13.4 Reports Prepared by the Committee

13.5 Specimen of Report Prepared by the Committee

13.6 Summary

13.7 Key Words

13.8 Review Questions

13.1 Introduction

A report is a basic management tool used in decision making. In one man business the
proprietor knows his business inside and out he is capable of making the right decisions. So he
does not need any reports. But in case of large scale organizations the top executives cannot
keep a personal watch over all their activities and so for them the reports are just indispensable.
 231

Some of the reports call for technical knowledge and acquaintance with business subtleties
and intricacies. The mangers and experts in certain field are often required to submit reports
on important issues like reduction on sales, expansion and modernization of the business,
reorganization of the office, desire to set up new branch, export promotion. The report will be
good only if you wish to furnish some technical details. If it is not possible apply the general
knowledge and concentrate on proper management and form of the report. The report must be
presented in a readable manner.

13.2 Reports by Individuals

The individual draft such report to seek attention to the order in which the items to be
embodied in a report otherwise it will lack attractiveness and force. An improper arrangement
will make the report a highly inconsiderable to take the decisions. The individuals should proceed
in a systematic manner. Eg. Reports by the production manager.

He should draft into the following order:

 The method that is in use at present new system its advantages and drawbacks

 An explanation of the proposed new system its advantages and drawbacks clearly

 The estimate of the cost of installation and working cost

 Comparative analysis of estimated cost of new methods with that of the old methods

 Considered opinion of the writer and his recommendations

 Now let us look into specimen of report made by individual and also study about the
report prepared by committees.

13.3 Specimens of Report by Individual

1. Report by auditor to Directors of a company where indiscipline has led to

losses was assigned to a firm of Chartered accountants

14th September 2018

The Directors
232

Ram Glass works Ltd

New Delhi

Sirs,

In accordance with the instructions in your letter dated 1st September 2018, we had low
experienced persons from this firm observe the working of your company for two weeks to
investigate the methods of running the business, and the daily conduct of the staff. From the
observation, the following defects were noted:

1. The secretary ‘s age and continued poor health has made him lose interest, and the
Registrar is too indecisive to control the office staff who disobey his instructions. As a
result, the work as a whole is not carried out according to the instructions of the Managing
director and is often seriously delayed. Customers complain about the delays and some
even cancel their orders owing to the delays in the delivery.

2. The departmental managers at the works with the exception of the one in the Stores
Department have become too friendly with the workers. Their authority is thus weakened
and the workers waste a great deal of time. The production is seriously slowed down, and
the goods are not finished to the required high standard. This has resulted in rejection by
customers, and general loss of business apart from the loss of man hours, power and raw
material. This matter has been reported twice to the secretary by the Works Manager, but
no action has been taken.

3. The Accountant, owing to ill health has not kept his professional knowledge up to date
and has made no efforts to find the best system of costing to suit the company’s business.
Prices quoted for some contracts have been far below the actual cost and some of the
contracts carried out have resulted in losses. When an attempt was made to correct this,
unreasonably high prices were quoted leading to the loss of the business.

The following are the recommendations which are made:

1. The secretary should be superannuated and the Registrar demoted to the position of the
superintendent. The positions of the secretary and Registrar should be filed by competent
and efficient men who are able to impose discipline on the staff.
 233

2. All departmental managers at the works except the Stores Manger should be dismissed
immediately with one month salary

3. The accountant should be suspended and a person with up to date knowledge should be
appointed above him

4. A staff meeting should be called to explain the need for the discipline and to point out that
disobedience to orders of superiors will be punished with immediate dismissal. Notices
announcing this warning should be put up in all the departments of the office and the
works.

Yours faithfully

RMK

Partner, Royal Sons

Accountants

2. Report from Directors with suggestion to increase the sale

Comments

 It is related to the future policy of the concern

 Analyse and find out the reason for the decline in sales

 The committee was appointed to present a report thereon

 The subcommittee consist of Mr. Stalin and Mr. Uday as directors

 The subcommittee conducted meetings every fortnightly and made several visits to
Surat to explore the possible sites for our factory=

Findings

 The staff is inadequate

 The branch requires re orientation

234

 ‘The labourers have to be trained and motivated to increase the sales

 The show case has to be modernized and display in an attractive way

Recommendations

 The manager must be insisted to present monthly report

 Qualified and trained sales man must be appointed

 The branch manager concentrated mainly on the supervision work

 New premises shifted to the heart of the city

 The show case display technique must be thoroughly reorganised

Yours Faithfully

Uday

Chairman of sub committee

3. Report of investigation into pilferage in the stores department

suggesting suitable remedial measures

Dear Sir,

Subject: Report on the charges of pilferage against Mr. Rakesh kumar, the stores in
charge

In accordance with your letter No. dated... assigning me the task of investigating the
charges of pilferage against Mr. Rakesh Kumar, stores in charges, I have carefully gone into
the matter and submit my report as under:

The charges are True

My investigations have convinced me beyond a lots of doubt that the charges against Mr.
Rakesh Kumar are quite. Two surprise checks in the stores, a careful cross checking of various
purchase and stock documents and probing interviews with at least a dozen employees
representing almost all the departments have irrefutably confirmed the charges.
 235

Simple modus operandi

Mr. Rakesh Kumar has a very simple method of pilfering expensive office stationery. He
has to issue usual consumables like writing pads, file covers,. Correcting fluid bottles, gum
bottles, staple pins, clips, highlighters, Xerox paper, ball pen etc. On the basis of the indents
presented to him by the staff. Mr. Rakesh Kumar makes entries in the register gets them
signed by the concerned member and issues the items. Later he tampers with this record and
misappropriate some items. Some of these items like Xerox paper, highlighters and erasers
(imported variety) are quite expensive. Mr. Rakesh Kumar has a nexus with the suppliers and
these items are sold back to them.

Recommendations

In view of the fact that Mr. Rakesh Kumar is an old employee of the Company. I suggest
the following remedial steps:

1. Mr. Rakesh Kuamr should be transferred from this sensitive seat after being administered
a strict warning

2. The suppliers should be changed

3. A circular may be issued to the employee that they should fill in all the details of the items
being issued to them in an issue register in their own hand

4. There should be frequent surprise checks of the stores to verify whether the stocks are
being properly maintained

I am sure these simple steps will enable us to check pilferage

4. Report of a company secretary on the general inefficiency negligence

of the duty of the staff in the Branch office

To the Board of Directors

Hindustan Motors Limited, Bangalore

Dear Sirs
236

Re: General inefficiency and negligence of duty by the staff in our Kolkata Office

In accordance with your instructions contained in your letter dated 14th September 2019,
I personally came down to Kolkata to visit our branch and look into its functioning. I have made
some investigations and submit my report as hereunder

Complaints

A number of customers who had purchased our Telecraft Deleuxe or Telecraft super TV
Sets and complained to the Head office of the poor after sales services being provided to
them. In spite of their persistent telephone calls and even reminders, no mechanics attended
to their TV Sets and if per chance they did they betrayed such a incompetence that the complaints
has to be renewed the very next day.

Investigations

I reached Kolkata and paid a surprise visit to the office at 11 am. I was shocked to find
that more than half the members of the staff including Mr. D.K. Singh , our branch Manger had
not yet reported for work. A brief talk with some old and trusted members of Kolkata from the
head office, revealed that very few members bothered to observe punctuality and reaching the
office later than 11 am was the usual practice.

I could notice general apathy and carelessness almost in every department. Incoming
letters are not sorted in time; paper ready for filing lie piled up in the heaps and even important
cases are not disposed of in time.

Findings

In my opinion, prospective customers of TV sets largely depend on the recommendations

of the present owners. If one customers gets dissatisfied, he can discourage at least three
other. I attribute our poor sales in the current year to the dissatisfaction of our patrons.

Recommendations

I have no hesitation in recommending that Mr. Singh may be served with notice and a
really efficient man may be sent here from the Head Office so that the functioning of the
 237

Branch is again streamlined. We shall have to take extra pains to re-establish the reputation
we have lost and to extricate the staff from their present state of lethargy. The services of the
low mechanics still on probation should be terminated and some experienced engineers should
be sent from the head office

13.4 Report Prepared by the Committee

Committee reports constitute another common form of business communication.

Appointment of committees has become a popular method of obtaining facts and decision-
making inputs in an authoritative [Link] report is expected to be considered as the opinion
after a cautious deliberations of the members. Hence it must be drafted in formal way signed
by the members of the committee or by the chairman. The following matters are incorporated
while drafting this report

 Analysis of the object of the committee’s investigations

 Brief analysis of the proceedings and discussions

 The names of the witnesses examined and the detail s of the evidence offered

Decisions arrived in the form of the recommendation for the consideration of the person
to whom the report is addressed. It is the formal report and has to be carefully drafted as the
future policies of the company are framed based on it. After passing the resolution in the board
meeting, the subcommittee are appointed. The reports, files and a detailed study of the market
have to be made before presenting the report. The findings and recommendations must be
presented in the systematic manner. Sometimes covering letter will be enclosed along with the
committee report. The directors form the subcommittee and deal with important matters to
improve the organisation.

13.5 Specimen of Report Prepared by the committee

5. Report by subcommittee to examine the sites for a proposed New Factory

Comments

The proposed site is located in an ideal locality

238

As it is located in an under developed area plenty of labour is available at cheaper cost

We can avail subsidy from the government as it is located in an under developed area

Due to lack of competition we can be confident regarding the future prospects

Transport and banking facilities are available nearer to the new site

Raw materials can be transported at a cheaper cost

6. Report of Sub-committee on the choice of a suitable site for a branch

factory in Maharashtra

To the Directors

Crystal Glass Works

1. Terms of Reference

The subcommittee was appointed by Resolution No. 846 adopted a meeting of the Board
of directors held on 25th March 2018. The sub committee consisting of Mr. Rajesh kumar.
Convenor, Mr. Ramesh kumar and Mr. Ravi are authorised to choose a suitable site for a
branch factory for producing glassware in Pune and to report in two months.

Procedure

The subcommittee held three meetings on 13 and 29 January and 28 February. The
members of the subcommittee visited Mumbai, Pune, Nagpur between 20 January and 10
February and saw several sites available for industrial units. The members also met the
Government and municipal authorities to enquire about permission, licences and water and
power connections.

Findings

The subcommittee felt that pune is the most suitable city for a glass works factory owing
to the local market as well as export facilities. Other conditions are described below:

Raw materials: All components for the manufacture of glass are available in Mumbai
since there are several other glassware factories. Fine sand is regularly supplied by specialised
agents, from the banks of the Narmada, the Tapi and the Godavari Rivers.
 239

Staff and Workers: Supervisory staff, and skilled and unskilled labour are available. The
salaries and wages are higher than in the other cites but the quality of the work is of a high
standard. Highly qualified technicians and designers receive very high salaries in Pune, but
the expense of such staff will be compensated for by the market

Scope for Expansion: The company’s market can be extended to foreign countries through
the Export Promotion Council as well as the consulates in Pune

Recommendations

The subcommittee recommend that

1. One of the sites be closed in consultation with the company’s Architects

Negotiations be started immediately to acquire the selected site

The secretary be authorised to invite tenders for the construction of the factory and to
apply to the Government of India for licence to import the required machines.

Date: 5th April 2019

Place: Chennai

7. Reports of Subcommittee on Decline in the Circulation of the Company

Magazine “The Indian Woman”

To the Board of Directors

Popular Magazines Pvt Lts

1. Terms of Reference

The subcommittee was appointed by the following resolution of the Board passed at the
meeting held on 15th Feb 2019

“Resolved that a sub committee consisting Mr. Ramchand, convenor, Dr. Gulzar and
Mrs. Anita be and hereby, appointed to investigate the causes of the decline in the circulation
of the “The Indian Woman” and to report with recommendations in a month’s time.
240

Procedure

The subcommittee met three times on 11th and 23rd Feb and 5th March

Three of the large distributors in Mumbai were contacted and their views noted

Twenty small magazine shop owners were questioned to find put their experience with
the sale of women’s magazines

Fifteen hundred questionnaires were collected from various users including our past and
present subscribers and members of women associations. Their interviews were sent out for
filing in the questionnaires

Other women magazines available in Mumbai were carefully compared with our magazine

Findings

From the investigations, the subcommittee arrived at the following conclusions

The deterioration in quality was traced to the decision to make no increase in the
expenditure on paper and purchase paper in bulk for all the company publications. The women
magazines editor had always been given freedom to select the appear in view of the readership
of the magazines and the need for the good reproduction of the photographs, drawings and
various other illustrations. The magazines suffered an immediate set back when it was allotted
the ordinary news print

As a result of using the ordinary newsprint, the photograph and illustrations become poor
in reproduction. This caused reputed photographers, artist and illustrators to refuse to contribute
to our magazines.

Recommendations

Adequate funds should be allocated to the magazine and the editor authorised to purchase
the good quality for the next issue

The editor should be instructed to write letters to reputed writers inviting contributions
and offering an attractive honorarium
 241

The services of good artists and photographers should be procured by offering attractive
items

Date: 12th March 2019

Place Mumbai

Check Your Progress

1. What is Committee Reports?

2. What is Report?

3. What is report by individuals?

13.6 Summary

A report is a basic management tool used in decision making. In one man business the
proprietor knows his business inside out and is capable of making the right decisions. So he
does not need any reports. The report will be good only if you wish to furnish some technical
details. If it is not possible apply the general knowledge and concentrate on proper management
and form of the report. The report must be presented in a readable manner. The individual draft
such report to seek attention to the order in which the items to be embodied in a report otherwise
242

it will lack attractiveness and force. This report is expected to be considered as the opinion
after a cautious deliberations of the members. Decisions arrived in the form of the
recommendation for the consideration of the person to whom the report is [Link] can
also learn the several points that should be taken into consideration while preparing the report
by individuals and committees.

13.7 Key Words

Recommendations

Findings

Committee

Report by Individual

13.8 Review Questions

1. Prepare a report by auditor to directors of a company where indiscipline has led to losses
was assigned to a firm of chartered accountants

2. Prepare a report from directors with suggestion to increase the sale

3. Write a report of investigation into pilferage in the stores department suggesting

suitable remedial measures

4. Write a report by subcommittee to examine the sites for a proposed New Factory

5. Write a report of Sub-committee on the choice of a suitable site for a branch factory in
Mizoram
 243

UNIT 14
SPEECHES

Learning Objectives

After completing this unit, you must be able to:

 List out the character tics of a good speech

 Discuss the profile of speaker

 Explain the composition of presentation

Structure
14.1 Introduction

14.2 Preparation Work is Done in Four Stages

14.3 Charactertics of Good Speech

14.4 Profile of a Good Speaker

14.5 Model Speeches

14.6 Summary

14.7 Key Words

14.8 Review Questions

14.1 Introduction

A spoken words can stir people to mutinies and rebellions; it can make them dispirited
and down cast. It can turn a hostile mob into a friendly gathering. It can also turn a friendly
gathering into a hostile mob. It can build tension and it can also relax tension. Nehru’s famous
speech “the light has gone out” on the death of Gandhi evoked a sense of irreparable national
loss and brought tears to the eyes of the listener. Managers, businessmen and industrialists
are often required to make speeches at company meetings, inaugurations , seminars and
discussions. It needs considerable skill to prepare a speech and make it effectively before a
244

gathering. The spoken word is very powerful. A speech is a talk given to a large or small
gathering on a special occasion. It is given on occasion like inauguration, anniversary, to
encourage, appreciate, entertain or motivate its employees. There is no interaction with audience.
The key to the success of many political leaders, industrialist, businessmen, salesman, lie in
the capability of making an effective speech. In the commercial field, a sales man meets several
people and has to persuade his customers by his powerful speech. The greater his speech
ability, the better sales man he will be. But there are occasions for formal speeches as well.
Managers, industrialists have to make speeches at company meetings, seminars and
discussions. Persons in responsible position must be good speakers. Being able to speak well
is an asset in any profession. Speaking skill can be cultivated and developed with knowledge
of the formal aspects of public speaking, with practice. A presentation is serious and is delivered
to a knowledgeable audience at a conference with the purpose to inform and explain a particular
point. It may be interactive and can be followed by questions from the audience at times.

14.2 Preparation Work is Done in Four Stages

To find out the environment where he is going to deliver his speech

Preparation of the text

Taking care of ones physical appearance and body languages

Practicing delivery of the talk

14.3 Character tics of Good Speech

The following points discussed below explains about the characterics of Speech

Clarity

It is an important characterics of good speech. A speech will be successful when conveying

to the audience the ideas or emotions, facts and arguments only when it is clearly specified. If
the audience does not grasp the point, the speaker has failed in his [Link] speech should
be successful in conveying the ideas or emotions , facts or arguments to the audience.
 245

Personal and informal talk: While speaking there should be a perfect rapport between
the speaker and the audience. A good speech is closer to a personal and informal chat between
two intimate friends, There should be perfect rapport between the speaker and the audience,
vivid and concrete. The speech should include correct facts aeasy to comprehend and visualize.

Concrete: The speech must be vivid and include concrete facts, easy to comprehensive
and visualize so that no today will miss the point.

Brief: The concentration of the audience does not last for more that 15 minutes. Ideally,
the speech should be no longer, unless the audience is motivated to know more. To achieve
brevity, it is desirable to include few points and elaborate them at some length.

Interesting: Quotations, stories and humors touches often and make the speech
interesting. They should be familiar but not worn out. Humors should be spontaneous and
gentle.

Audience oriented: The age group, size of the audience has to be kept in mind while
delivering the speech. It should confirm to the taste of the particular age group. A good speech
is always tuned to the wave length of the audience. The following points should be considered
carefully.

Is the audience a general or specialized one? This will help you to determine the depth of
subject that you can touch

How large is the audience? What is the age group of the listeners? What are the social,
religious , political and economic views and prejudices of the listeners.

14.4 Profile of a Good Speaker

A good speaker must be lively, interesting, enthusiastic and vital. The speaker should
make sure that he is keenly interested in the subject and he is taking pains to make the audience
equally interested in it

The speaker should impress the audience with his speech and does not deliver it just fir
tge sake of speaking.
246

The speaker must have the sense of responsibility to his listeners. The time is precious
and must say something worth for the time being spent by his audience.

A good speaker must have the sense of leadership and must speak with responsibility
and authority as a leader should do

The speaker must not be carried away with over enthusiasm or over confidence

A good speaker must have the sense of humor

Speech Environment

Venue: The speaker must be familiar with the physical environment. If it is outside he
must make efforts to get familiar with the room, seating arrangements, speakers position etc.

Organizers: He should find out everything possible about the organizers, name of
organizations and the name of the president and secretary and the office bearers as it is
important while addressing them.

Occasion: It is also equally important to know about the occasion on which the talk is
organized and he can use the appropriate tone and style to suit the occasion.

Time: Preparation work depends on given time and keeps strictly with in the allotted
time. It is courteous to keep time to interact with the members of the audience.

Other Speakers: it is also useful to know about the other speakers , the topics on which
they will speak and their expectations from the speakers

Audience: The audience analysis is very important for any speaker. The educational
and economic status of the audience is also important

Status: The highly educated audience is more critical, the rich do not favour social changes

Relationship with audience: Finally the speaker may be viewed by the audience as an
expert on the topic , as a colleague sharing experience, as role model as a representative to
sell ideas.
 247

Preparation of Speeches

An industrialist or businessman get several occasions to deliver a speech. Generally,

such people are invited to speak in formal or informal meetings, which strengthen the relationship
with the public. To deliver, an effective lecture, he should prepare the material effectively, select
the right words, and must be simple. While preparing for speech the following should be kept
in mind:

Subject of the speech: The speaker must stick on to the subject otherwise the audience
will get confused

Purpose of the research: The speech while speaking to audience can convey some
messages, entertain them, persuade and encourage them.

Length: The speech must fit comfortably to the time available . The speed might vary
according to the audience capacity.

Style: The style of the speech is different from style of writing. While writing lengthy
sentences can be used, but when speaking sentence must be short to enable the listeners to
understand.

Tone: Tone of the speech is less formal than the tone of the writing. Repeating phrases
like “ you see”, guys” are not appropriate for formal occasions.

Humor: To make the speech more interesting humor can be added. Humor should be
natural in the course of the speech and above all it should not embracer hurt the feelings of the
listener.

Aids: To make it more clear power point presentations using charts, figures and diagrams
can be used.

Languages: The languages used must be very simple. Foreign words, technical terms,
offensive words, vulgar terms and colloquial words not to be used.

Follow up: The speaker must take follow up actions so as to find out how for he has
reached the audience
248

Composition of Presentations:

An Oral Presentations follows he traditional structure with introductory remarks, main

body of the speech and concluding closing remarks

Introduction: It fulfils a certain purpose. It build up rapport, focusing attention and arousing
interest of the audience. The speaker must state his name though he is already introduced.
E.g As Mr. Jai already mentioned I am Dr. Lakshmi for IIM.

Rapport can be established by pointing out a common bond between the speaker and
audience. The cheerfulness, friendliness and sincerity with which the first few words are started
will attract the audience towards you.

E.g “ Let me convey my heart felt thanks to the college committee for giving me the
previlage to participate in this occasion

Focusing attention can be done in a number of ways. Attention must be focused on the
central point of the talk. One or two questions can be raised based on the size of audience and
subject of the presentation E.G What?

You have proposed to do after completing B.E? What is your career plan?

Body of the Presentation

This consists of the message to be conveyed to the audience. Subject matter must be
arranged in logical order. The material obtained from proper sources and must be stated clearly
and accurately. The language used must be simple and can use examples to impress the
audience. The main text depends on the occasion and objective of the speech. A presentation
meant to give information must be carefully planned with main points and sub divisions. If the
purposes are to persuade the audience, highlight Aspects which are important to the audience.

Conclusion: It is the last part of the speech and the speaker has to summarize the entire
speech given by him in few sentences. Hence the closing must leave a clear message. For
encouraging speech, express confidence in further achievement. For a persuasive speech
there must be a request for co-operation. It is customary to invite questions from the audience.
The closing part must not be abrupt. A smooth closing can begin with highlighting the attention
 249

focusing used at the beginning. He can end with a quotation or a question. E.g. We need
completion in business, but co-operation in road.

Visual aids: It has a stronger impact than spoken words as we remember much more of
what we see than what we hear. The visual aids used enhance the speech. Posters can be
used as it does not require any equipment. The overhead projectors can be used but requires
projection arrangement. A slide projector can be used to show the photograph. The must be
little visual, followed by explanation the visuals become an excellent handout for those who
attend the presentation.

Power point presentation: It can be designed with the help of power point. Slides can
be created and displayed on the computer screen for small audience. Slides can be created
according to the requirement of his presentation. Animation and sound can also be added to
the slides to the ideas being presented. If the speaker’s attention is concentrated on handling
the slides the audience attention will be diverted. Hence Technology must remain as subordinate
and must not calm more attention than the content of presentation.

Speakers Appearances and Personality: The physical appearances and personality

makes an important impact. Body Language includes personality, appearance, dressing and
movements. Personality is also influenced by posture which means the manner of standing
sitting and walking. Self Confidence is an important aspect of personality and it automatically
comes by being well prepared.

Comfortable Postures: Leaning on the Podium or constantly moving looks uncomfortable

and presents a poor personality. Practice a good standing postures . Movements must be
natural for establishing lively rapport with the audience. A pleasant cheerful face is an asset to
a speaker. The voice should have variations and modulations to suit the content of the speech.
A pause after making an important point gives the listeners time to absorb it. The state of
health affects the throat, the tongue and the entire speaking apparatus.

Writing a Speech

All the organizations conduct annual general meeting once in a year. Chairman gives a
speech regarding the progress of the organizations in the annual general meeting of the
company. The following points must be kept in mind while delivering the speech:
250

Salutations like “Ladies and Gentlemen” used in the beginning

Welcome the shareholders present for the meeting

Comments on auditors report and directors report to be ready

Progress of the firm and government policies to be discussed

Expansion and modernization of the firm to be discussed

Way of working of the company to be mentioned

Change of auditors, Secretary, Directors to be reported’

Declaration of dividend and bonus to be announced

Concluding words prepared

Beginners have to practice well before the actual delivery of the speech. Practice helps
to check the timing. The speech should never be mechanical, but it should be kept lively.
Practice makes a person perfect.

Planning to speak

A good speech appears to be spontaneous and effortless which needs a lot of planning
and labout. Reearch the topic thoroughly, Do not include many points for discussion. Plan the
speech in three parts. The beginning should arouse the interests of the audience. The middle
should be devoted to the discussion. The conclusion should summarize the main [Link]
some action is to be taken, it should clearly tell the audience what they are required to do.
Speech should neither be too long nor too short. Choose some suitable quotations or anecdotes.
Arrange the points so that strong points are kept in the beginning. Tailor the speech to the
intellectual level and general taste of the audience. It is always desirable to rehearse the speech
 251

14.5 Model Speeches

1. Chairman’s Speech

Ram Industries Pvt Ltd

Chairman’s Statement

Speech delivered by Mr. Ramadan Sagar, Chairman and Managing Director, Ram
Industries Pvt Ltd to the shareholders at the Eighth annual general meeting of the company
held on October 24,2018 at Bangalore

“Good people grow with”

Ladies and Gentleman,

I have great pleasure in welcoming you all to the eighth annual general meeting of your
company

Performance Review 2017-18

Last year had been a successful year for your company. I will review few of the major
achievements.

The performance during the year had been satisfactory and the profitability has been
maintained due to the optimum ultization of resources

The market generally witnessed an encouraged trend in spite of the huge cost of operation

Our domestic sales have been continuously increased

Profit after tax increased, insipite of increase in raw materials to the tune of 65 lacs

We have received an export order from Japan and USA

Periodical survey and analysis are carried out to monitor the usage of energy’

The dividend rate has been enhanced to 30%

252

The company has proposed to start a subsidiary company to manufacture surgical gauze
and cotton

The annual accounts have been completed in record time, due to computerization of
business transactions. The company has further expanded the wind farm by acquiring two
numbers. The power generated has substantially improved.

Acknowledgement

The company wish to convey their thanks to the banks and financial institutions for their
continued support and wish to place on record, their appreciation to all employees towards the
growth of the company. To prove the social responsibility of our company we have organized
health and medical camps at all rural level and promotion of sports and cultural activites have
become part and poarcel of the company’s operations

Conclusion

I wish to thank once again our employees and directors for their guidance and support .
With your support and with the blessings of God I hope we can march forward towards a
successful future.

2. Speech delivered by Mukesh D Ambani

Chairman Statement

40th AGM

(June 18,2014, Wednesday)

My Dear Shareowners,

A very warm good morning to each and every one of you.

It gives me great pleasure to welcome you to the Annual General Meeting of Reliance
Industries Limited.

The Company’s accounts for the year ended March 31, 2014, along with the Directors’
 253

and Auditors’ report, a Letter to the Shareholders, and Management’s Discussions and Analysis,
have already been circulated to you.

With your permission, I would like to take them as read.

Dear Shareowners,

This is the 40th AGM of Reliance Industries Limited.

But it is only 37 years since Reliance became a listed company.

In these 37 years, with every investment and with every new business, Reliance has
become a larger part of theeconomic and social fabric of India and has made the lives of

India’s 1.25 billion people better. This was the dream of our Founder Chairman and my father

Shri Dhirubhai Ambani and I am happy to say that we are pursuing that dream even more
strongly today.

With each passing year, Reliance is becoming more intrinsic and meaningful to the Indian

economy. The foundation of our success over the past 37 years has been the growing aspirations
of the Indian small businesses and consumers and the resolute entrepreneurial mind-set and

dedication of our thousands of employees. Reliance has been the largest investor in building

new assets in India for over two decades. Our belief in India as a fast-growing competitive
market, and as a talent pool for running and managing our businesses, has gained strength

through each of our investment cycles. In the first 30 years, Reliance built three globally

competitive businesses – petrochemicals, refining and marketing and oil and gas in India.

This is, without any doubt, unparalleled in the history of the hydrocarbon and energy

businesses. Since the last seven years, we are also investing in world-class next-generation

consumer business in India – in retail and next generation communication and computing
technologies with the goals to improve the quality of life of millions of Indians, provide large-

scale livelihood opportunities, empowerment and access to new age tools and improving the

productivity of small businesses. We are now making a very deep commitment to India’s growth
254

by investing in our integrated energy chain and India centric consumer businesses. In the past
37 years, we invested Rs. 240,000 crore and in this current three years’ investment cycle, we
will be investing over Rs. 180,000 crore. We are currently at the mid-point of the largest
investment programme in Reliance’s history. The next two years, 2014-15 and 2015-16, will
see us focused on executing and progressively bringing these projects on-stream in
petrochemicals, refining, retail and Jio. The year 2016-17 will be the first full year in which the
complete benefits of all these investments will be available to our shareholders, consumers
and the [Link] next three years are transformational in RIL’s journey. By the time we
finish four decades since our first public offering we will again be a radically different company.
We hope to accomplish as much in the next three years as we have achieved in the past 37
years. I seek your good wishes, support and encouragement for RIL and all its people in this
momentous journey. Shri Ramnikbhai Ambani attains the age of 90 years and will finish his
term as Director of RIL. On behalf of the Board, the entire Reliance family and myself, I will like
to express our deep gratitude for his immense contribution to Reliance. Though he is not here
today, I will request the shareholders to give him a thunderous ovation as a tribute to his
contribution. We wish him the very best in future and count on his continued blessings. The
past twelve months have been particularly difficult for large emerging market countries. A
combination of high inflation, low growth and large current account deficit has led to
unprecedented volatility in exchange rates and portfolio outflows. This coincided with a period
in which we saw first steps of normalisation in monetary policy and resumption of growth in the
developed market economies leading to concerns of portfolio outflows from emerging markets.
India has been no exception to this and has witnessed a combination of growth, inflation and
business confidence worries that have hurt margins and impacted new investments. Reliance
however reaffirmed its belief in India by committing to investing at this time when the public and
private investments have been at a decadal low.

The emergence of North America as the fastest growing region on increase in hydrocarbon
production is reshaping some of our businesses and creating both challenges and opportunities.

These changes further reinforce our business model of cost competitiveness on a global
scale and India-centric growth. I am proud to inform you about yet another year of stellar
performance despite significant macro-economic challenges. We became the first company in
 255

the private sector to record revenues of over Rs. 400,000 crore. Last year, Reliance recorded
its highest ever consolidated revenue of Rs. 446,339 crore and net profit of Rs. 22,493 crore.
Reliance achieved its highest ever exports of Rs. 275,825 crore, accounting for 69% of our
turnover. Our products were successfully placed in the international markets, with exports to
123 countries during the year. Reliance continues to be India’s largest exporter, accounting for
14.7% of the total exports from India. I am proud to say that we continue the tradition of
Reliance being the highest tax payer in the private sector in the country. Reliance accounts for
4.7% of India’s total indirect tax revenues. Reliance is also the largest income tax payer amongst
private sector companies.

Reliance’s superior credit profile is reflected as the only Asian company in the Oil and
Gas sector to enjoy a rating two notches above the Sovereign [Link] have not forgotten our
promise to bring the best global brands to the doorstep of the Indian customer. We continue to
invest in partnerships with international retailers to significantly expand our range of offerings.

Our recent and existing partnerships underpin our accent on bringing the best global
brands to Indian consumers, expanding the horizons of their retail experience and universe of
choice.

The nature and scale of our new thinking has led to improvements, freshness and big
changes in how we do things. With innovation at the core of every aspect of our business, we
have made ‘newness’ instinctual to every business, integrated in its strategy and operations.
This results in an engaging shopping experience for the customer. Organized retail in India is
witnessing a new surge of optimism. Having invested in retail talent development and state-of-
the-art retail infrastructure, we are in a unique position to capitalize on the growing opportunity
in India.

In a short period of time, Reliance Retail has achieved market leadership. We will further
expand the business in existing markets and explore newer markets and channels while
leveraging our solid foundation. I would now like to turn to one of the most transformational
initiatives of Reliance. One that India would see evolving over the next few years. This is the
pan-India, Fourth Generation Broadband initiative, under the auspices of Reliance Jio. I had
shared the vision of this initiative last year - of a digital India - and of the unique opportunity that
256

we have, as Reliance, to maximize the benefits of the digital age for India. I had also shared
with you our plans on building a country-wide broadband next-generation infrastructure. And
digital services that will help contribute significantly to the Indian economy, and help improve
the lives of our 1.25 billion countrymen. Reliance is set to make this vision a reality very soon.

Reliance Jio will leverage on the emerging data explosion concurrent with the large volume
and criticality of data traffic and data-driven applications for individuals, governments, businesses
and enterprises of all hues, in urban and rural areas. Reliance is committed, with your support,
to make the compelling vision of Jio happen. Reliance is at an inflection point in its journey to
create value for all its stake holders, based on the three-year investment cycle, greater
competitive advantage and higher diversity and sustainability of growth and profitability of all
our businesses. I see unprecedented levels of aspiration and ambition in our society, especially
among the Indian youth. Every Indian wants to be included in India’s Growth Story, and every
Indian wants to contribute to India’s Growth Story. The entrepreneurial energy in India is waiting
to be unlocked. At a time like this, young Indians need positive role models who can inspire
them and who can make them believe that their dreams will indeed come true. Reliance has
been a role model for all Indians who dare to dream, and it will continue to be an even bigger
role model for them in the years to come. This is my assurance to you. And this is our promise
to India. We are strengthening each of our existing businesses to maintain their competitive
positions in performance and in operating margins. We are simultaneously de-risking the
organisation by bringing on board the best talent globally and also providing development
opportunities to each of the next generation of Reliance managers. In closing, I reiterate that
Reliance’s faith in India is as robust as ever. For it has been the very foundation of the creation
and character of Reliance. As I have brought out, our initiatives support India’s imperatives in
energy security, address advanced material needs, link the farmer with markets and create the
next generation information super [Link] efforts and focus, over the next two years, will
be to intensify these initiatives and have them reach out to more citizens across the social
spectrum. More significantly, they would help improve livelihoods, employment opportunities
and value for Indian society, on anunprecedented [Link] every sense, Reliance will be moving
from investing in India’s economic future to integrating deeper with India’s social fabric. India is
finding renewed confidence in creating opportunities for its citizens and forging forward on
equitable growth, at higher rates, to attain and sustain a position among the top global economic
 257

powers. For us in Reliance, it simply means that we have to work with greater zeal and intensity
than before, in every way thatwe are able to, in supporting the achievement of India’s goals.
The greatest strength of Reliance has been the unstinting support that it has enjoyed from its
constituents and wellwishers – my colleagues on the Board, our talented employees and their
families, our valued shareholders, investors, bankers, financial institutions, lenders, suppliers
and customers. Our strong engagement with India could not have found ground without the
encouragement and support from the Central and State Governments and the Governments of
all the countries where Reliance operates. My heartfelt gratitude to each individual, agency
and organisation who had contributed to and supported our accomplishments.

Thanking You

Mukesh D. Ambani

Mumbai

3. Speech on Public – Private Partnership for the cause of Equitable Quality Education
delivered By Azim Premji

(Feb 25, 2009)

Honourable Chief Minister, Education Minister, Officers of the Government of Karnataka,

distinguished guests and friends; it is my privilege to be with you on this occasion of

Government of Karnataka’s launch of Public-Private Partnership program. This is yet

another

evidence of Government of Karnataka’s seriousness to improve the quality of Elementary

Education in the [Link] over, civil society organisations and corporates play a critical
role in development ofthe society. In our country, the Tatas demonstrated how business can
play a vital role in thedevelopment of the country as far back as the early 1900’s. In Wipro, we
recognized theneed to contribute to society in 1972, when we stated, as one of our beliefs,
“there is asocial purpose in being in business”.
258

The government, both at the central and state level, which has a constitutional responsibility
of ensuring quality education for all, has taken several steps to establish schools in most
villages across the country. The Government of Karnataka, for the past 10 years, has an
impressive track record in ensuring that almost 95% of our children are in school. We now
need to ensure that the enrolled children not only remain in the school but also enjoy learning
in school. This is possible only if we dramatically improve the quality of education in our schools.
The government has shown genuine interest in improving quality through its recent initiatives
such as Karnataka School Quality Assessment Organisation, systematic management
development of its education functionaries and school academic improvement plan.
Organisations such as the Akshara Foundation, Akshayapatra, Adamya Chetana, NIAS,

Azim Premji Foundation and many others are contributing to the government’s effort to
significantly impact quality of education. However, there is tremendous need for many more
from civil society and the corporate sector to join in this effort. Our own experience in partnering
with the government through Azim Premji Foundation has been very positive. There are many
good officers within the government who are open to change and to partnership with the private
sector. The government faces several critical challenges:

Political Will: Firstly, it is important that there be political will. Today’s launch is a sign of
political readiness on the part of the Government of Karnataka. Quality education will not
happen if we are not politically determined to achieve it. It is necessary that every elected
political representative ensures quality infrastructure - school building with functioning toilets
and drinking water, qualified and motivated teachers in the appropriate teacher-pupil ratio, and
active community involvement in the education process. To my mind there is no greater crime
against society than squandering away funds meant for our children’s growth and development.
Children are the future of our country. A large nation of educated, empowered people can be a
tower house of strength, but a large nation of uneducated, poorly skilled people will be a weak
nation and fertile ground for discord and self destruction. This is where China is miles ahead of
us, with its high literacy rates and its pursuit of achievement in every field. The assessment of
competencies of children, through the Azim Premji Foundation’s Learning Guarantee Program,
has shown that barely in 10% of government schools do majority of our children achieve expected
learning competencies. This picture has to change. The education department must take the
 259

responsibility for achieving this. The education structure, both teaching and administration,
must receive all necessary support, encouragement and follow up to achieve this end.

The extent of education budget required to provide good education has long been much
debated. To me, such debate is irrelevant. Providing quality education to the next generation is
our prime responsibility for the future of our country. We have to provide for the necessary
budgets to ensure that every school has the prescribed infrastructure, qualified teachers in the
right ratio, professionally trained education functionaries and school leaders. We cannot
compromise on this at any cost. It has been amply demonstrated that every country that invests
in high quality education recovers the costs manifold through economic growth and development
of the country.

Even if this means that the budget for education extends to 10% or more of the GDP, so
be it, provided the budget goes towards the prescribed purpose and is not frittered away. I
cannot emphasize this last point more strongly. The principals, teachers and the education
administrators are the most important “Change Agents” who can help achieve the goals of
education. It is imperative that all these participants in the education process have, or are,
developed to acquire a broad vision of education and child development, and the requisite
skills and motivation to fulfill this most important responsibility. Madhya Pradesh Government
retained two very competent leaders in the education department for 10 years, which was a
critical contributor in raising the literacy in the state by 15 percentage points in 10 years. My
sincere request to the government is to identify the people most competent and passionate
about education to lead the department, and allow them to hold the position as long as possible.
Discontinuity of critical leaders can significantly retard the development process. Currently the
involvement/participation of the private organisations is subject to change depending on the
whims of individual leaders in the Education Department. In the last 8-9 years, the Education
Department in Karnataka had outstanding and committed individuals who strove for productive
partnerships. I feel that there should be a legal frame work for such public-private collaborations
to ensure their continuity, irrespective of changes in government. In a country such as ours –
with over 13 lakh schools, 55 lakh teachers, 20 crore children, several languages, diverse
cultures and over 70 percent people below poverty line, achieving quality education is an
extremely challenging task and it becomes imperative for the three critical stakeholders – the
260

government, civil society organizations and the corporate sector, to work together in unison to
face this challenge. All stakeholders have their strengths and limitations. We need to focus on
the strengths and leverage them to make quality universal education for all a reality, and quickly.
To my corporate sector colleagues, who are interested in the education and empowerment of
our nation, may I make the following points:

The kind of people you employ will be only as good as our education system is. Therefore
if you contribute to education and in people development, right at the initial phase of primary
education, it makes sound business sense. Contribute financially to areas where the government
does not have budgets or where the existing norms are inadequate. Merely looking at Corporate
Social Responsibility activities as brand building does not automatically help in building your
brand. For that, you must create value; and you cannot create value, unless you invest in the
people that are engaged in your Corporate Social Responsibility activities. The government
needs to address its responsibilities in the core areas of school infrastructure, appointment of
qualified and motivated teachers, promoting major education campaigns, etc. Private agencies
can lend support on softer issues – such as quality initiatives, research, training and development.
Development issues are complex and interlinked. You may not see results over a short period.
Illustratively, you may have done an excellent job of training education administrators or teachers,
but it will take some time for the actual impact in the classroom and on the child to be visible.
Therefore, please be patient and prepared to continue your support over a sustained period.
Our experience tells us that government can accept you as a partner if you understand their
challenges, are sensitive to them, and do not have an approach of “I know everything and I am
here to teach you”. Remember we are a very small entity compared to the government. For
instance, the government education budget in Karnataka is over Rs.6000 crore. They have
over 300,000 people directly orindirectly working for education. All private organizations in
Karnataka together would atbest bring one percent of this budget. What we contribute is but an
expression of ourresponsibility as citizens of our country. It is also important to respect all the
existing

institutions such as the self help groups, the gram panchayats, the head teachers, the
school development and management committees and all other players. I congratulate the
 261

Government of Karnataka for taking this first step, which I trust will be the forerunner to the
creation of enabling conditions, conducive to public-private partnership in education. We will
have to create several conditions for the public-private partnership to

succeed. We will have to enable it through spirit, letter, resource and legal framework
External efforts can come to a naught if the government does not build high quality monitoring
and supporting systems. As things stand today, I am very optimistic of all that we can achieve
together.

I wish everyone here all the very best, and thank the Government of Karnataka for having
invited me on this occasion.

- Azim H. Premji

4. Mr Lakshmi Mittal, chairman and CEO ArcelorMittal

Speech delivered at Steel Success Strategies XXIX

New York, 17 June 2014

Good morning everyone. I am delighted to be here with all of you today. I missed last
year’s event, so it’s good to be back.

Today I want to speak to you about two main points: one about the material and the
second about the general economic health.

I have come to New York straight from China, where on Sunday ArcelorMittal celebrated
the inauguration of our newest steel plant, called VAMA.

VAMA is a US$800m joint venture between ArcelorMittal and our partner Hunan Valin
Iron & Steel Company. It is located around 1,000 kilometres west of Shanghai in the town of
Loudi. It has taken two years to build. And it’s going to create 600 high-skilled jobs, with plans
to create more as production increases. We are very excited about this new plant; because for
the first time ArcelorMittal will be producing high-strength automotive steel in China, the world’s
largest and fastest growing automotive market. Our customers will be global brands – such as
Volkswagen, GM, Ford, PSA, Daimler-Benz, Toyota, Honda, Renault, Fiat and Nissan – as
262

well as leading domestic manufacturers. These customers have encouraged us to enter this
market. They are excited about our new presence because it addresses the two main concerns
of the automotive segment today. The first is the geographic shift to the developing economies.
The global automotive market is expected to grow by 33 million cars between 2007 and 2020.
32 million of these cars are coming from developing economies, with the biggest growth in
China. The second is being able to meet new fuel efficiency legislation. Carmakers need to
reduce the weight of their vehicles in order to meet future regulations. In Europe the target is
95 grams of CO2 per kilometre by 2021; and for NAFTA the target is 54.5 miles per gallon fuel
efficiency by 2025, in 2 phases. The solution for both is essentially the same: To deliver a
twenty five percent reduction in the weight of structural components and closures, in other
words the body-in-white. The total weight of these parts typically ranges from 600 kilograms to
800 kilograms. So that means we need to lighten them by 120 – 160 kilograms. VAMA is the
perfect example of ArcelorMittal’s ability to do both.

Regarding the geographic shift to developing economies, we are making strategic

investments to support our customers’ requirements. This is vital because generally speaking
the auto sector operates global platforms. This means they will increasingly make cars exactly
the same way in China as they do in the United States. Being able to work with the same
supplier in different markets is therefore clearly an advantage as they are guaranteed exactly
the same product produced to exactly the same quality standards. It was an important part of
the logic behind the creation of ArcelorMittal and also an example of how the era of consolidation
has created unique benefits for the era of innovation. In other words, the merger gave us the
global position from which today we are able to provide our global customers with the innovation
they require and which we have developed as a result of our size and scale. VAMA is the most
recent example in the fastest growing market; but there are others. In Brazil we have invested
in the production of advanced high strength steel at our Vega do Sul plant. And one of the
reasons we were so delighted to acquire the Calvert facility in Alabama - where we are ramping
up to full capacity - is because it is located near Mexico, which has a fast growing automobile
market. Turning to fuel efficiency, I want to make two points. First, it is true the steel industry is
constantly in a state of technological revolution. Our steels for the automotive sector are a
perfect example. I don’t want to get too technical, but essentially steel’s strength has multiplied
by ten times over the past twenty years from 170 to 1700 megapascals. These are phenomenal
 263

changes. And we don’t know where the limit is in terms of product development. Every day we
open up new frontiers and do things which yesterday didn’t seem possible. Second, and most
importantly, I want to stress that steel can provide all the weight reduction that auto producers
require to satisfy the new fuel efficiency standards; for all types of vehicle. That may come as
a surprise to some of you. I know other materials talk about 30 or 40% lighter than steel, but
that’s only accurate if you are using the steel of 2005 as a comparison. Today we are working
with completely different steels, which are the results of hundreds of millions of dollars of
investment. This includes our S-in-motion range of products. S-in-motion is a collection of over
60 different advanced and ultra high strength steels that can collectively take the weight out.
These include both cold stamped and press hardened steels like Usibor. Usibor is really ground-
breaking technology. When parts require the highest strength, Usibor provides the lightest
solution of any materials. A great example is the award-winning laser-welded, hot-stamped
door ring co-engineered with Honda for its new Acura MDX. Not only did it achieve a four
kilogram reduction in weight, but also the highest available collision safety rating from the
Insurance Institute for Highway Safety.

In Europe, which had a two year head start over NAFTA as the targets were introduced
two years earlier, 15% of all vehicles are already compliant with 2020 emission targets. Not
only have the European carmakers had more time to get comfortable that steel can meet all
their requirements, but they have also reversed some decisions in terms of the use of alternative
materials. The most powerful evidence of this is from the automakers directly. The head of
materials research and manufacturing from Volkswagen probably put it best – at least from our
perspective - when he said: “We are using high strength steels in increasing amounts. It is a
very cost effective way of reducing weight. Using new innovations in steel engineering.....it is
possible to reduce weight without the use for more costly materials”. The second point I want
to refer to in steels favour is cost. There isn’t much to say here except steel is more cost
effective – and just as safe - than other materials. The third element in steel’s favour is
sustainability and this needs a little more elaboration. One crucial aspect of steel which is often
forgotten is its performance over the entire life cycle – as well as its importance in the creation
of more sustainable products. Today, people are not incentivised to look at the carbon footprint
of a product over its entire life cycle. But they should be, because this is one important way we
can make bigger steps towards an overall more sustainable environment. If I’m a car company
264

today, what matters is that I can make my emission targets. And that’s good and needs to be
done. But what would be even better – even more socially responsible, more visionary and
more sustainable - is if we can make them in a way that is the most efficient over the life cycle
from the production of the materials to the end of the car’s life. And this is where again there is
a benefit with steel. Not only does steel produce less CO2 than other alternative materials, but
it is also the only material which is 100% recyclable with no diminution in properties. So, to
conclude on this topic, we understand there is a challenge from other materials. And we accept
that we live in a multi-materials world where the intersection of regulatory incentives and market
competition ensures that the bar continually goes up. But no one should doubt that steel remains
the material of choice. It is also important for people to understand that: We are confident that
we are developing the required steels to help our customers achieve their fuel emission reduction
targets for all types of vehicle. There are some parts of the vehicle, notably where strength is
the priority, where steel is the lightest of all materials. We have the most cost effective and
environmentally friendly solution . And – crucially - we expect ArcelorMittal’s auto steel business
to grow as our customers increasingly value technical capabilities and a global footprint. Part
of this growth is due to the global economy, whose prospects have thankfully improved since
the last time I spoke here in June 2012. At that time the world was facing its most serious
economic challenges since the onset of the crisis. The focus was on Europe. It was a time of
great uncertainty and what-if’s, resulting in a paralysed business environment and frozen
investment decisions. The situation in Europe was of concern to everyone, including here in
the US, which was in a comparatively stronger position. And the emerging markets, where
many had pinned their hopes to keep the global growth engine running, were also beginning to
falter.

In the US underlying growth is strong and this is reflected in numerous different indicators.
The economy has consistently generated an additional two hundred thousand jobs a month,
consumer spending remains strong, increasing at a 3.1% annual rate,. Purchasing managers
indices continue to improve; and light vehicle sales in May were the highest for over seven
years at 16.7 million.

In fact the key difference between now and two years ago is that the developed markets
are on a much stronger footing. 2014 is expected to be the strongest year for the OECD since
 265

2010. This is certainly positive for ArcelorMittal as two thirds of our shipments are in the developed
world.

There is however a slightly different story in the developing economies. Two years ago
these markets were also starting to slow, due – it was assumed - to the knock-on effect from
the developed markets. However it has become apparent that whilst growth in many of these
markets remains above that of their developed world counterparts, there are some major
structural issues which need to be addressed. India is a good example that has recently been
in the spotlight due to its election. Two years ago, the forecast for growth in India was around
7%. This was lower than the 8% they had been delivering, but still pretty impressive by many
standards. Today we are looking at growth rates closer to 5 - 6%. To put this in context the
latest 5 year plan calls for 8% GDP growth in order to reduce poverty by 10%. The new Indian
Prime Minister has promised “less government, more governance.” I feel more confident that
he is able to deliver on this promise. It is what India needs if it is to realise its potential of being
one of the world’s economic powerhouses. The same is true of other major developing
economies, such as Russia and Brazil, currently in the spotlight on account of the world cup,
which has attracted controversy as well as excitement. Structural problems due to low levels of
investment continue to hold back growth in Brazil. Its growth model, centred too much on
boosting consumption in the presence of supply constraints, is unsustainable. It will be important
for new measures to be implemented that address the structural problems and return the
country to a stronger level of growth. In Russia, the high reliance on energy exports is a long
term risk and the country needs to diversify into other sectors. GDP growth was already slowing
even before the Ukraine crisis at only 1.3% in 2013. China, as is often the case, has its own
unique dynamics. In fact the situation today in China is not dissimilar to the one in 2012, where
growth was slowing slightly. The difference is whilst China is unlikely to let growth slip below
7% and will continue to inject small amounts of stimulus as required, we are unlikely to see the
size of stimulus we did in 2012. This may mean having to accept a lower level of growth, but it
also means there is less risk of a hard landing. This will impact steel demand. This year we are
forecasting steel growth of around 3% in China, compared with 7% in 2013. Many developing
economies, with Brazil, Russia and India as examples already mentioned, are held back by
poor infrastructure. This makes the cost of managing logistical challenges too expensive to
support business investment. But the problem is not limited to developing economies. Here in
266

the United States the infrastructure is also in serious need of catch up investment. Last year,
the American Society of Civil Engineers rated overall US infrastructure a D+. And inland
waterways got a D. The ASCE estimates that the US would need to spend around US$450
billion a year to get to a B rating by 2020. That’s more than double what is currently planned. I
am aware that I say this at a time when shrinking the budget deficits remains a priority for many
countries. As indeed it should. But it is important to invest for the future. And when interest
rates are so low, it makes sense to take advantage and address urgent infrastructure
requirements that support growth. This would also further boost manufacturing, which has a
critical role to play in economic growth. In all economies, manufacturing remains a major
employer and a real driver of innovation. Last November, we had the privilege of welcoming
the President of the United States to our facility in Cleveland. In his address, the President said
that ‘manufacturing is the hub of our economy. When the manufacturing base is strong, the
entire economy is strong’. It was great to hear him say this. And of course I agree. Equally in
Europe, I am delighted that the EU parliament has set a target for manufacturing to represent
20% of its GDP by 2020. This compares with around 16% today

Where governments must be careful however is to recognise how some of their decisions
could have a negative impact on the competitiveness of manufacturing. We are now less than
two years from COP 2015 in Paris. The aim is to agree a global solution to reduce CO2 emissions.
I agree that any effective environmental program ultimately needs to be global. Otherwise
there is a real risk that energy intensive industries will no longer be competitive in certain
economies. And that they will be pushed towards those countries with looser legislation and in
all probability less efficient and therefore less environmentally friendly operations. Our unmatched
lifecycle footprint and the application of the product mean that steel is critical to the transition to
a low carbon world. According to the Boston Consulting Group, steel has a positive CO2 emission
savings ratio of six to one. That means for every ton of CO2 produced during the steel making
process, six tons of CO2 were saved through the application of the product. Looking at eight
applications alone, the net CO2 savings are approximately 350 million tons of CO2 per year.
But in order for us to play this role, governments must recognise the importance of
competitiveness in their policy calculations. We believe Brussels needs to take the opportunity
to close the huge gap that is threatening Europe’s energy-intensive industries. They need to
address the over regulation that will harm the competitiveness of European manufacturing. To
 267

give some context, if we paid US energy prices at our European facilities, our costs would drop
by more than one billion dollars. Instead, given the current policy environment, this disadvantage
is only likely to increase more. All we request is a fair and level playing field, which allows local
producers to compete under the same conditions in domestic and international markets. The
good news is that the global economy is in a stronger place than it was in 2012, particularly in
the developed world. We live in a competitive world, with increasing pressure on business to
be part of the solution to the major mega-trends that shape the global environment. I firmly
believe that steel has the potential to be part of that solution, as fundamentally the product we
make remains vital to the infrastructure of the modern world. And although challengers to that
product exist, I also believe that steel remains the best solution based on a number of criteria,
including sustainability. That’s why I am confident steel will be not only the fabric of life, as we
say at Arcelor Mittal, but also the fabric of the future.

Thank you very much.

5. Speech delivered by N.R. Narayana Murthy , Infosys, Banglore (June 15,2013)

Dear Shareholders,

First of all, it is nice to be back here with you after missing the 2012 AGM. I am overwhelmed
by your affection. I thank you for electing me as a member of the board. I thank Mr. K. V.
Kamath, Mr. Kris Gopalakrishnan and the other members of the board for welcoming me so
warmly. I am grateful to Mr. Kris Gopalakrishnan, Mr. Shibulal, Executive Directors and every
Infoscion for making me feel at home so quickly. I promise to dedicate fully and wholeheartedly
to the task on hand.

In the recent months, our company has gone through challenging times. However, we
should all be optimists. We have much to be proud of. We have overcome tougher and bigger
challenges before. Through our hard work, sacrifice, intelligence and relentless execution, we
have built this company from a small two-room apartment in Pune to a global company covering
over 30 countries, 30 million square feet of space, ‘ 40,000 Crores of net worth, over ‘ 130,000
Crores of market value, over ‘ 40,000 Crores of revenue, over ‘ 9,400 Crores net profit, being
268

listed on the Mumbai/NSE/NYSE-EuroNext bourses, and winning several prestigious awards.

This company has a large pool of world-class talent, a committed group of customers, and a
portfolio of over 440,000 well-wishing investors. But, we have much more to do. The need of
the day is to focus on our employees; take quick, tough and firm decisions; communicate
these decisions with clarity and speed; execute these decisions with speed, imagination and
excellence; and exceed the expectations of our customers and investors. We will overcome
the current challenges too if we demonstrate the same aspiration, determination, commitment
and hard work as we did in the past.

The current strategy of the company aims at market opportunities in the following three
revenue streams:

1. Focusing on opportunities from consulting-led, end to end solutions leveraging technology

for higher margins.

2. Developing intellectual property-based solutions to delink revenues from effort.

3. To win highly-competitive, large-revenue-yielding outsourcing projects involving application

development, maintenance, testing, BPO, and infrastructure management.

Historically, the company has relied primarily on the third stream. This stream has become
commoditized in recent years. Our desire has been to ensure revenue growth while maintaining
decent margins. Hence, given the current market reality, the company adopted this three-
stream strategy two years ago.

However, there are changes we need to make in executing this strategy. We believe the
first two streams of our strategy are necessary for a better future. While we have performed
creditably in these two streams as of today, we should continue our focus on these two streams
since they have a potential to improve our future.

During the last two years, our focus on the third stream was blurred. We have to refocus
on this (our bread and butter business) in the short-term while also ensuring that we accelerate
our progress in the first two streams in the medium to long term.

We have had a detailed discussion on this. Let me be clear. By short-term I mean the
next six to 12 months. By medium to long term I mean the next three to five years. The entire
 269

company is committed to refocusing on the third stream to enhance our win ratio in large
outsourcing deals. Such extra focus on commoditized businesses has the potential to accelerate
our revenue growth while reducing our margins. I want you all to be aware of the downside.

The current discussion on the new immigration bill in the US is both an opportunity for
innovation and a challenge for growth. I would like every Infoscion to see this as an opportunity.

Thank you all

6. Speech delivered by Shiv Nadar in Annual General Meeting 2018

(June 13, 2018)

Welcome to HCL Technologies Ltd.’s Annual General Meeting 2018.

Technology is fast becoming an intrinsic element of the interface between humans and
the physical world. The new digital age is transforming enterprises and is altering the ways to
operate in a fast-changing world. To stay relevant and ready for the future, organizations of the
21st century must embrace the new wave of technological change. They cannot overlook the
importance of continuous innovation - the key to sustained competitive advantage in a constantly
evolving socio-economic landscape. HCL has been an active technology player for over four
decades, delivering value to its stakeholders. Our services are focused on reimagining the
future for the 21st century enterprise, enabling newer opportunities of growth for them. Driven
by passion to innovate in an organizational culture woven by core beliefs and values, your
company has always striven to create unmatched socio-economic value for all its stakeholders.
HCL aspires to be the digital transformation partner of the ‘21st Century Enterprise’. Today, as
a global technology services provider, your Company provides a full spectrum of services
under its Mode 1-2-3 strategy. Existing clients renewed engagements with the Company and
new deals were successfully secured. HCL has been recognized as a forerunner and innovative
leader in the digital spectrum. Right investments backed by the delivery of value addition have
propelled the company towards robust growth and consequently the much-coveted leadership
position. At HCL, we believe in living our Corporate Social Responsibility every moment, through
everything that we do across the world. HCL Foundation is the CSR arm of HCL Technologies.
Our mission is to nurture clean, green and healthy communities where everyone is empowered
and equipped to reach their full potential. Integral to HCL’s CSR is the initiative harnessing the
270

‘Power of 1’ where HCLites and their families voluntarily contribute financial resources and
personal time. Close to 38,000 employees have been contributing Re.1 per day in India and $1
per payroll in US. HCLites have contributed more than 1,00,000 hours working with underserved
communities, towards sustainable development. The HCL Family came together to respond to
Kerala floods, collected and deployed 18 Tons of relevant relief material within few hours of
disaster. This shows the real spirit of CSR in HCL. Through its community flagship programs
such as HCL Samuday, HCL Grant and HCL Uday, HCL Foundation works towards sustainable
development of communities living in most difficult circumstances in rural and urban areas
while working towards ecological conservation in all its work. HCL Samuday works towards
complete transformation of 765 villages in Hardoi District covering 600,000 people. The journey
of HCL is also about our commitment to achieving community development and expanding
community outreach. A large populace lives in TIER II towns and looks for employment
opportunities in the metros. With HCL’s ‘New Vistas’ program, we are setting up HCL Delivery
Centres in TIER II cities such as Lucknow and Madurai, among others, to make employment
opportunities available to the people in these areas. HCL further expanded its footprint by
adding another delivery campus in India by commencing business operations from its Nagpur
campus. This state-of-the-art campus, inaugurated earlier this year, will have around 1,000
employees working on global client engagements by the end of this year. These centres offer
employment opportunities to engineering and non-engineering graduates, Class XII pass-outs,
and women who are looking for a second chance to start their careers. We believe that if a
person has talent, then age and qualifications should not stand in the way of his or her ambitions.
In line with this vision, we have recently organized mega recruitment drives in Nagpur, Lucknow
and Madurai. When combined, the HCL centres have generated more than 3,800 jobs till now.
HCL delivers differentiated value to its clients and stakeholders. At HCL, we nurture the culture
of Ideapreneurship. We innovate at the grass-root levels and provide various platforms to
Ideapreneurs where they can ideate, collaborate and craft innovative ideas to resolve customer
issues. Along with the Board of Directors, I would like to acknowledge the contribution of our
more than 120,000 HCLites, who have done a great job in creating value for the customers,
and also contributed significantly to our business. I, on behalf of the HCL family, would also like
to extend sincere appreciation to our customers, partners, bankers, government agencies,
and our shareholders. I would like to thank all of you for coming here and looking forward to
your continued support in HCL’s exciting journey ahead.

Thank you
 271

Check Your Progress

1. What is the meaning of Speech?

2. Write a short note on visual aids

3. What is Power point presentation?

14.6 Summary

Speech is a talk given to a large or small gathering on a special occasion. It is given on

occasion like inauguration, anniversary, to encourage, appreciate, entertain or motivate its
employees. Persons in responsible position must be good speakers. Being able to speak well
is an asset in any profession. Speaking skill can be cultivated and developed with knowledge
of the formal aspects of public speaking, with practice. The features of good speech are clarity,
Personal and informal Talk, Concrete, Brief and Interesting, Audience oriented. The speaker
should impress the audience with his speech and does not deliver it just for the sake of speaking.
The speaker must have the sense of responsibility to his listeners. The time is precious and
must say something worth for the time being spent by his audience. A good speaker must have
the sense of leadership and must speak with responsibility and authority as a leader should do.
An Oral Presentations follows he traditional structure with introductory remarks, main body of
the speech and concluding closing remarks.
272

14.7 Key Words

Speech

Visual aids

Power point presentation

Humor

14.8 Review Questions

1. What are the charactertics of good speaker?

2. Write a note on profile of good speaker

3. How to effectively prepare for the speech?

4. Draft the Chairman of educational Institution speech to the students during farewell day
celebrations

5. Narrate about the Composition of the speech

6. As a chairman of Sakthi petrochemicals Ltd address the twenty first Annual General
Meeting of the company.
 273

UNIT- 15
ROLE OF COMPUTERS IN
BUSINESS CORRESPONDENCE

Learning Objectives
 After learn this unit, you can able :

 Understand about the Role and functions of computer in business

 Explain about the Benefits and effects of technology in business correspondence

 Distinguish between laptop and desktop

Structure
15.1 Introduction

15.2 Role of Computer in Business

15.3 Functions of Computers in Business

15.4 Benefits of Computers in Business Correspondence

15.5 Laptop vs. Desktop

15.6 Effects of Technology on Business Communications

15.7 Technological Advancements

15.8 Summary

15.9 Key Words

15.10 Review Questions

15.1. Introduction

Modern business depends on two important areas namely Management and

communication. Effective Communication will bring greater morale, high productivity and good
turnover and ultimately acts as the financial boon to the industry. Effective communication
takes place only if a message or information gets transmitted from one individual to another
and obtains the correct and anticipated response from the receiver,. Nowadays communication
274

is dependent on high technology generally Information technology (IT). IT has grown immensely
having wide range of potential for greater speed and efficiency. The revolution in IT has been
accelerated by the invention of the silicon chip followed by the modern digital system. Together,
they have transformed communication by replacing the traditional forms of the communication
including analogue telephone. The high tech machines helps us to communicate efficiently but
hardly tells us what one has to communicate as they are neither programmed that way nor can
the replace human brain. Computer technology has great applications in almost all kinds of
businesses. They are relying on computers for automating their traditional processes. Businesses
use computers for communications across a number of types of people, such as between
employees, between the business and its customers, and between a business and its suppliers.
One major advantage of computer communication is that it is often asynchronous, which means
that communication can happen even if one person is not available by telephone. Additionally,
computers can store huge amounts of data that, if printed, would take rooms and rooms full of
file cabinets (this one way in which computers help save trees). It is also easy to find particular
data or to pull two data sets together using a computer; this would consume a lot of time with
paper records in a file cabinet. Employees who use computers can get more done than their
non-computer-using peers because both communications is easier to accomplish and finding
and using information is easier. Another role that the computer has played in recent years is
the ability to do things easily that would have been difficult in the past. For example, in the past,
if a company wanted to produce a video, it would have had to rent or buy large video cameras
and the equipment to process video. Digital video and the software to edit videos are much
less expensive. Finally, computers allow business employees to analyze huge data sets and to
find out new information that can help with business decisions. The messages are transmitted
quickly, the information are transmitted accurately. Errors in letter and documents can be
corrected with the help of spell check. The technology helps to shorten the channel of
communication and information search is possible from any location.

Computer

A computer is an electronic machine that can work with numbers, words or a combination
of numbers and words to produce data output.
 275

Computer building Blocks

The computer building blocks comprises of Input devices, Processor, output devices,
storage devices and control unit

Input device- A device which transfers data and programmes to the internal memory of
teh computer For example Key board

Processor – The main unit of a computer system which accept date from an input device,
performs instructions specified by the internally stored program and outputs the results to an
output devices

Output device : A device which receives the results of processing from the processor
like pointer and screen

Storage device- A computer auxiliary bulk storage device providing for the storage of
records and programs until required for processing activities

Control: The control unit which is an integral element of the central processing unit which
coordinates and controls the operation of the computer system as a whole. Control also includes
the system monitor and the operating system.

15.2. Role of Computer in Business

The role of computer may be defined as the accurate processing of the data for producing
the information in the form it is required, at the right time, at an acceptable level of accuracy
and at the right cost. For general administrative tasks including the printing of purchase orders
, processing sales orders and the preparation of various analyses for management control and
decision making process.

Statistical analysis: The computer can be used for the solving of statistical mathematical
scientific and engineering problem. The computer assists in the improvement of various business
activities by the application of the technique of simulation which studies the change in the
behaviour of a system when subjected to modification to various parameters, constraints and
variables
276

Financial Modelling includes profit projections, break even analysis and discounted cash
flow competitions models are constructed of business situations such as level of sales anticipated
each quarter at a defined selling price, level of variable costs and fixed overhead which enables
the projected profit to be computed.

Stock Management – Computer are widely used for stock management for the purpose
of eliminating surplus stocks and adjusting stock levels in accordance with the changing demands
and usage. Stock are also controlled to minimize stock obsolescence

Maximising the use of Resources: Resource utilization can also be maximise with a
computer using management science techniques such as goal programming, linear
programming, gaming theory and queuing theory etc.

Planning and Controlling the Projects- Various types of project can be planned and
controlled by means of special programs using the technology of critical path analysis (CPA)
and other related techniques.

The role of a computer is wide and varied even within a particular business, as the same
computer may be used for different departments. An attempt will now be made to classify and
summaries the various tasks for which computer may be applied. The application of the computer
for specific tasks will often depend upon the nature, size and complexity of the business but the
details which follow outline a typical selection of Tasks

Computer are used as an efficient and cost effective means of processing accounting
data including the preparation of payrolls, payslips, invoices, statements, updating fields and
general ledger accounting. For general administrative tasks inclusion the printing of purchase.
Computer speed up the business processes and systems with top quality, Today’s world
computer is important to use to start any online and offline business. A computer is important to
use in business to automate the manufacturing, marketing and, distribution process.

Computer help business to collect, manages, calculate, arrange, and visualize customer
data and information. Computer helps to communicate faster with customer. It’s really important
for the administration of the big or small organization and each field that manage resources
and opportunities.
 277

Computer help creates marketing and advertising materials. Computer is used in business
to create website for business. The computer is important in business to automate the business
transactions such as online banking, payment gateway.

Computer is used around the world in almost all the private, government and home
based business and organization. Without a computer, it’s impossible to conduct, run and
grow the business. That’s why the computer is important to use in business organization and
companies.

E-Commerce

E-commerce is the use of the electronic information technology for business transaction
such as displaying catalogues, selling and buying goods and services, processing payments
etc. It has accelerated the space and tempo of the business, minimized time lag between
transactions and reduced intermediation. Though the initial cost of creating an infrastructure
for E-Commerce may appear to be high. In the long run it has proved to be cost effective . The
direct contact between the producer and the consumer can boost the sales, and the time and
money spend on printing and stationery and dispatch.

The use of web based E-Commerce, a subset of internet technology has considerably
increased in recent times. Many companies which has established websites mainly for the
corporate and brand identity or for dissemination of information about their products are now
using it also for sales purposes. The number of Web users has grown both at work and at
home and so through this method a large market can be captured. Web Business is international
and open to transaction 24 hours a day on all 365 days.

Business to business E-Commerce has been expanding faster than business to consumer
E-Commerce because many reputed companies are already in possession of necessary
technology infrastructure. E commerce occurs within a business organization. This objective is
to link the constituents together and increase the flow of information within the organization.

15.3. Functions of Computers in Business

Most business processes now involve the use of computers. Here are some of them:
278

Communications: companies use computers for both internal and external communications
via e-mail, what’s-app, conferencing and word processing.

a. Research: Businesses can use computers to research industry trends, patents,

trademarks, potential clients and competitors via search engines and proprietary databases.

b. Media Production: computers are now used to produce different types of media, including
graphics, video and audio productions.

c. Data Tracking and Storage: Although paper files containing hard copy documents are
still in use, organizations also store and manage their data using software and the cloud.

d. Product Development: Developers use computers to create new products and services.

e. Human Resources: Internal HR processes and payroll systems are managed using
software and online services.

15.4. Benefits of Computers in Business Correspondence

i. Communication : Computer technology facilitates business communication. Employees

can exchange information without leaving their desks through instant messaging and
email. These technologies provide a written communication record, making them ideal
for official discourse that may need to be referenced later. In addition, these technologies
make it cost effective for businesses to communicate with people over great distances,
whereas a long-distance phone call or letter can be costly. This capability helps businesses
break into international markets that were not viable before computer technology.

ii. Accuracy : It is impossible for a computer to make an error in calculating, whereas

humans frequently make mathematical mistakes. Removing human error decreases the
chances of a business making a costly mistake in its figures. For example, a business’s
budgeting spread sheet may have to take into account a huge range of financial factors
and run to several pages. As long as the spreadsheet is created correctly, a computer
performs the calculations accurately in a matter of seconds.

iii. Small Business Benefits : Computer technologies can increase your company’s
marketplace presence by providing small businesses with cost-effective marketing and
production tools. Social media and inexpensive graphic design programs mean that
 279

although successful marketing is still a skilled task, effective worldwide marketing

campaigns no longer need to cost millions of dollars to implement. In addition, specialist
programs can help small business users perform several company roles at once. For
example, a business owner might use accounting software rather than employing an
external accountant.

iv. Working Practices : Computer technology allows both businesses and employees to be
flexible in the ways they work. Before computers, employees had to be physically present
in their offices to perform their daily tasks. However, the advent of technologies such as
virtual private networks have allowed for remote work, enabling workers to perform many
of their duties while at home or travelling. In addition, computer technology allows
organizations to outsource parts of their business to other companies who specialize in
those fields, such as customer service or field repair.

15.5. Laptop vs. Desktop

Business owners who are considering the purchase of computers have a lot of decisions
to make, including the types of computers they want to be used in their offices: Laptops or
desktops. While laptops have surged in popularity over the past decade, some experts believe
that desktops are still a good option for many companies. Here are some factors to consider.

 Cost of purchase and Repair: Desktop computers are often more affordable, compared
to laptops that have similar processing speeds and features. In addition, desktops may
be less costly to repair.

 Size and Ergonomics: both desktop and laptop computers are available in a range of
sizes. If space is at a premium in your office, take the time to compare the size and shape
of available machines. Ergonomics is also a factor; if your employees will be spending a
lot of time at their desks, choosing a system that encourages healthy body positioning is
important. In some cases, laptops can present greater ergonomic challenges, although
these can be overcome by purchasing peripherals, such as a separate monitor and
accessories.

 Portability: Where do your employees work? If you expect your team to be at their
desks most of the time, desktops may make the most sense. If your team is on the road
280

a lot, laptops are the better choice. In some cases, your best option may be to purchase
a mix of machines: Laptops for the sales and promotional teams, and desktops for
administrative staff.

15.6. Effects of Technology on Business Communications

Technology has changed business in many ways, but its affect on communication is
arguably the most significant. Indeed, communication through email, text messaging, instant
messaging, and even budding tools like social networking have been among the most profound
effects of technology on every area of business. However, while technology did make business
communications faster and easier, it has also made, at times, communication more distracting
and less clear.

 Faster Communication : Whether you need to speak with an employee who is travelling
in another state or country or you need to communicate with your supplier half way
around the world, technology allows you to do so instantaneously. In fact, thanks to email
and text messages, you can now send messages to people in other time zones before
you forget without worrying that you will wake them up. In fact, according to Walden
University, the Internet has allowed business people to communicate easily regardless
of time zone and language issues.

 Expanded Communication Opportunities : Technology allows individuals to

communicate and carry on a business relationship without ever meeting face to face, so
people in all parts of the world now have the chance to interact with a company in a rural
part of the United States. For example, technology allowed for the emergence of the
virtual assistant, a worker who completes tasks for her client online without having ever
met him, in the 20th century.

 Communication must be More Deliberate : Although technology has made

communication instantaneous, so you do not have to spend hours planning and
composting before you communicate and wait a long period for the reply, it has also
made planning deliberate communication periods more important. First, companies that
do take advantage of telecommunicating and virtual offices need to deliberately plan to
 281

communicate with individuals in teams to avoid employees losing touch and to make
sure all are working towards the same goals. Second, even if you work in a physical
office, instantaneous communication regarding quick decisions and memos cannot replace
specific communicating in multiple ways every day, it can be easy to forget to schedule
these types of meetings.

 Communication is More Distracting : From constantly overhearing cell phone

conversations, to the worker who is constantly emailing or texting you to the incessant
“ding” of your office’s instant messenger, communication tools that were designed to
make you more productive can actually do the opposite. Instant communication can
make it harder for workers to deal with one task at a time when their work is constantly
being interrupted by comments and questions that relate to other projects or even personal
issues. In fact, some employees must make an effort to turn off communication devices
while they work to meet deadlines.

15.7. Technological Advancements

Although the convergence of various technologies has enabled most of the devices to
expand and acquire more capabilities,. Each one has its own use and makes a different impact
and impression on the receiver. Technology has revolutionized the way people do business.
Rather than rely solely on face-to-face communication, company owners and their employees
have a wide variety of technology-mediated resources at their disposal. Computerized
communication allows immediate access to customers, business associates, vendors and
employees in other parts of the country and even the world. Examine the many technology
tools available to small business owners to see which of them you can benefit from using.

WhatsApp

i. Email

E-mail combines character tics of speaking and writing. One can directly and immediately
communicate with the receiver. One can send message to another even if he does not know
his whereabouts by just sending it across with the Ë-mail Ids. Through E-mail one can reach
individuals as well a s groups. E-mail Communication is more informal. Formalities observed in
282

a traditional business communication are dropped. The formality can reduce an E-Mail message
into a rambling message unless one is careful to put the most important message upfront”,
otherwise there is the risk of overlooking it or missing it.

Advantages of E-Mail

1. It is the quickest means of transmitting messages. Sending messages through the

ordinary post is just of reckoning now. Courier services can rarely do better than overnight
delivery. Most modern E-mail systems allow messages to be delivered through telecom channels
are significantly cheaper rates for long distance communication.

E-mail messages can be sent to a large number of people or to only selected few
depending upon the requirement

Emails does not thrust itself upon the receiver. A phone call when you are in the midst of
a serious dismiss ion can be highly disruptive. But an E-mail is a synchronous, It does not
depend upon the availability of the recipient. You can check your mailbox and receive your
messages at your leisure.

Email saves you from telephone tags. Email messages are supposed to be highly
confidential and secure. The chances of tempering with the messages are much fewer than in
the case of the messages conveyed through conventional modes. The use of codes can make
a message so secure that nobody except the person concerned can decyphor it.

Emails can be sent to individuals or groups of people who all need to be aware of the
same information. This kind of technology-based communication allows you to take care of
customers, partners and other stakeholders without lengthy conversations while maintaining a
record of exactly what was communicated. Additionally, email marketing services such as Mail
Chimp and Constant Contact allow you to send the same email to all interested parties on your
mailing list with the push of button.’

Voice Mail

Voice mail is like email except the end message by speaking into a telephone rather than
typing them. It requires a computer with an ability to store the audio message in digital form
 283

and then convert them back to an audio form retrieval. A caller dials the voicemail box of the
person with whom he wishes to talk. After receiving a signal to begin, the caller leaves a
message. The recipient can access the message either locally on telephone or remotely by
dialling into a voice mail box.

ii. Smart Phones and Texting : While speaking with people on the phone has gone
somewhat out of vogue in favour of email, texting has become the most personal form of
business communication. While you might give your email address to many people, your
personal phone/text number is reserved for a few close associates. A quick text to an
employee with information about the job they are working on is low key, non disruptive
and takes less time than a phone call. Smart phones also allow employees to take
advantage of a variety of management applications that can make their job easier,
especially if they are out of the office and on the road, working from home, or even just
checking in while in vacation. For many businesses, these minicomputers and
management tools are essential for sales staff and managers who can stay connected
with other employees and company updates.

iii. Management Tools : Business management tools make it easy to track the progress of
projects from start of finish, programs like Wrike, Trello, [Link] and Basecamp
allow team members to assign tasks within a project, upload documents, make changes
and comment on one another’s work, send messages and update progress, all in one
place. Other file-sharing programs such as Google Docs, Microsoft One Drive and Dropbox
also allow for team collaboration and communication on projects. Individuals can create
and store documents and then give other team members access to those documents.
Changes can be made and shared among team members and stored for later retrieval.
Even if employees are working in different locations or times of the day, the collaborative
effort is simple, and nothing is missed.

Teleconferencing

iv. Video Conferencing : Usually a group communication takes place in person in the same
room, but now technology provides a facilty for discussion . Video conferencing is a
medium where the individuals or groups can meet face to face in real time to interact. It
284

requires a computer (Mac or PC) with CU –See Me software, a video camera (such as
Connectix Quickcam) and an Internet connection, preferably ISDN. Bringing the world
into the classroom through the use of this technology is becoming increasingly more
popular.

Using this technology , a meeting is conducted through television displays of the

participants and with the sounds of their voices. Thus the participants can see one another on
television monitors and can hear one another of all the teleconferencing methods. Video
conferencing is actually like real meeting. Here the videotapes of meetings can be made and
kept for record.

Advantages of Video conference

This technology saves the resources such a s cost and time and facilite the exchange of
information more effectively with greater returns

Students are able to get answers for their clarification of doubts and promotes interaction
with the experts

It helps the adults to learn the cultural differences who may be very different from
themselves

This technology enhances the motivation and boost the morale and provides better
retention of the knowledge

This technology enhances the skills such as presentation and speaking skills, questioning
skills and communication and management skills.

If your business is spread out in various locations, you can save both time and money by
using videoconferencing for meetings with staff from various offices. Applications such as
Google Hangouts and Skype allow you to see one another while you hold your meetings. This
allows for face-to-face communication even though participants are many miles apart. This is
an especially useful tool for maintaining camaraderie among office personnel despite long
distances.
 285

v. Social Networking : When it comes to marketing our business, social network sites
such as Facebook, LinkedIn and Instagram can be essential to getting your message
out. Since you gather “friends” on these sites, you have to adjust your communication
style to an informal approach. These sites are places to do relationship marketing and
make announcements about new products, specials or events you are hosting. Instead
of sales pitches, place messages on these sites that sound like you have a good deal for
your friends.

Twitter is another social media network where you can spread your message in brief
tweets. You must choose your words wisely because the app limits how many characters
you can use. Tweets may not result in immediate sales, but hey keep you company in
your followers’ minds in the marketplace.

vi. Website Blogs : Blogs, or weblogs, are an essential part of many company websites.
Blogs typically provide information on the products or services that interest the consumers.
As the expert in our particular field, you can offer information and function as a resource
for both your customers and potential clients. When people search the internet for
information on a particular type of product or service and find helpful information on your
blog, they are more likely to come to your for the related products or services you sell.

vii. Messenger Apps and Chatbots : Another tool for computerized communication with
customers is integrating chatbots into messenger applications on your website. Using
chatbots can lessen your employees’ workload while providing basic customer service. A
Chatbot is an automated service that interacts with a customer over a chat interface
without the presence of a live person. The chatbot is programmed to respond to certain
questions and provide information or assistance as needed. If necessary, a live customer
service representative can take over the interaction to provide more detailed help.

Usage of Computers to improve the writing skills

Knowledge of the electronic technology reviewed in the preceding pages is important to

your understanding of how people communicate in business. In recent years, computer software
ahs been developed that checks writing for correctness as well s for certain principles of style.
Thus, you can write a rough draft of a document using the computer work processing function
and then use it to test your rough draft.
286

Spelling checkers

Spelling checkers are play an integral role in word processing program used to record
the document. In fact, some of these programs are even incorporated thesaurus to help you
chose words. Spelling checkers contain large numbers of correct word spellings. Each word in
your document is tested against this dictionary. A word spelling that does not match the word in
the dictionary is flagged on the screen.

Punctuations and grammar checkers

Several programs have been developed for checking documents for punctuations and
grammar. Specifically, punctuations checkers test for missing in marks, although they re limited
in handling certain ones such s commas. The use of commas depends on many factors, one
being the writer’s discretion. These programs also are sued to check a variety of mechanical
elements. They can check spacing before and after punctuation marks, correctness of
abbreviations, capitalization, balance of use of quotation marks, double words etc.

Clear – writing Analyzers

A number of software programs can analyse your adherence to clear – writing principles.
These programs are designed to measure the readability of your writing. They measure sentence
length and determine percentages of long words. With this information, they calculate a
quantitative measure of readability. Although there are writing programs which are useful they
exist some faults in the programs.

Check Your Progress

1. What are Punctuations and grammar checkers?

2. List out the latest technologies that are followed by the business
 287

3. What are Clear – writing Analyzers?

15.8. Summary

In this unit, the different company correspondence along with the technology up gradation
is deals by the companies have discussed. The role play by the computer in any company is
enormous. The importance of computer in business and the functions of computer in business
such as research, media production, data tracking and storage, product development and
human resources along with the benefits of the computers like communication, accuracy, small
business benefits, and the working practices also explained in detail. The meaning for laptop
and desktop and the differences between these two have also discussed. The effects of
technology used on communication and the different forms of technology mediated
communication have also discussed in detail.

15.9. Key Words

Technology, laptop, E-mail, Facebook, Twitter

15.10. Review Questions

1. Write the different forms of latest technologies used for business correspondence.

2. Explain the importance of modern technologies for business correspondence.

3. What is the role of computer in business correspondence?

4. Explain about the usage of computers to improve the writing skills

288

MODEL QUESTION PAPER

[Link]., Corporate Secretaryship / Bank Management
Second Year - Thrid Semester
Paper - VII
BUSINESS COMMUNICATION
Time : 3 Hrs. Max marks 75

Section A
Answer any ten questions (10x2=20)

1. What are Business Letters?

2. What are offers?

3. What do you mean by orders?

4. What are collection letters?

5. What are Quotations?

6. What are Circular letters?

7. What are Reference letters?

8. What is a debenture?

9. What is Report?

10. What is Report by Committees?

11. What do you mean by Speech?

12. Write a short note on Video Conferencing.

 289

Section B
Answer any five questions (5x5=25)

13. What are the principles for drafting the business letters?

14. What are the situation in which circular letters will be drafted?

15. Your class has decided to go for a picnic. Write a letter to the owner of a bus service
making enquiries. Give all required details

16. Inform a customer that owing to his repeated delay in paying his dues you are compelled
to deal with him on cash basis only.

17. State the characteristics of the good business report.

18. What are the characteristics of good speaker?

19. What is the role of computer in business correspondence?

Section C
Answer any three questions (3x10=30)

20. What are the various types of business letters?

21. Draft a letter to be sent to a College Principal who has not placed any order with you
for two years though she used to buy large quantities of answer books from you every
year. Offer an inducement to get her to place an order

22. Draft the minutes of the meeting of the student’s council of your college which is held
to decide the progammes for the annual day.

23. Draft the Chairman of educational Institution speech to the students during farewell day
celebrations

24. Write the different forms of latest technologies used for business correspondence