Question

Attempt the following.

Write a letter to the debenture holder regarding payment of interest through Interest Warrant.

Answer 1

1. Debenture capital is a loan or borrowed capital of a company.
2. Debenture holders are the creditors and they get a fixed rate of interest as a return on their investment in debentures.
3. The interest paid by the company is a debt and does not depend upon profits.
4. The company pays interest through an Interest warrant which is sent along with this letter.
5. This letter contains details such as No. of debentures, Distinctive numbers, Gross amount of interest payable, TDS deducted, Net amount of interest payable, etc.

HULK MOTORS LTD.

Registered office: Plot No. 05, Commercial Towers, P.K. Road,
Mumbai - 400067

CIN: R20020 MH 1000 PLC123456

Website: wwww.hulkmotors.in
Email: [email protected]
Date: 17th Oct, 2020

Phone: 022 12345678
Fax: 022 - 11112222
Ref. No.: C/2060/20-18
Mr. John Methiw
508, Lokesh Apartments,
AK.D. Road,
Mumbai – 4000089

Sub: Payment of Interest on Debentures.

Dear Sir,

I am directed to inform you that, the Board of Directors has passed a resolution in the Board Meeting held on 15th Oct, 2020 regarding payment of interest on your 100, 10% Non-convertible debentures of ₹ 100/- each for the year ending 31st March, 2020.

The details of payment of interest payable to you are as follows:

1	2	3		4	5	6	7
Folio No.	No. of Debentures	Distinctive Numbers		Gross Amt. of Interest	T.D.S (10% on interest)	Net Amt. of Interest	Interest Warrant No.
		From	To
D-123	100	901	1000	₹ 1,000	NIL	₹ 1,000	C1234

The Interest Warrant is enclosed herewith. Please detach the Interest Warrant along the perforated line.

Thanking You,

Yours Faithfully,
For Hulk Motors Ltd.

 Sign           
Mr. Kamlesh Gaikwad
Company Secretary

Encl: Interest Warrant