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Question
Write a letter to the debenture holder informing him/her about the conversion of debentures into equity shares.
Solution
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Rainbow Industries Limited 50/A, Swami Narayan Road, Tunga Village, Mumbai - 72, Ref.: Rainbow/27/2012-13 Date: 2nd May 2012 Mr. Sanjay P. Patil Sub: Conversion of debentures into equity shares Dear Sir, I am directed to inform you that in accordance with the terms decided at the time of issue of 1,00,000, 12.5% convertible debentures, the debentures would be eligible for full. conversion into equity shares, on expiry of 3 years, from the date of issue of debentures. In accordance with the above, a special resolution was passed at the Extraordinary General Meeting held on 20th April 2012 for approval of the conversion of debentures into equity shares. As per your letter of the option you have been allotted 10 equity shares in lieu of your 50 debentures. These shares shall rank on par with the existing equity shares. Details of your holding after conversion are as follows.
Duly signed and executed share certificate is enclosed. Debenture certificate will be null and void w e.f. 30th April 2012. Thanking you. Yours faithfully, Sign Encl: Share Certificate |
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| Vinayak Ltd. Balance Sheet as of 31st March, 2021 | |||
| Particulars | Note no. | 31.3.2021 (₹) | 31.3.2020 (₹) |
| I EQUITY AND LIABILITIES | |||
| 1. Shareholder’s Funds: | |||
| a. Share Capital | 30,50,000 | 20,00,000 | |
| b. Reserve and Surplus | 2,80,000 | 6,00,000 | |
| 2. Current Liabilities: | |||
| a. Trade Payable | 6,70,000 | 4,00,000 | |
| Total | 40,00,000 | 30,00,000 | |
| II ASSETS | |||
| 1. Non-Current Assets: | |||
| a. Fixed Assets: | |||
| i. Tangible Assets | 16,00,000 | 12,00,000 | |
| ii. Intangible Assets | 2,00,000 | 3,00,000 | |
| 2. Current Assets | |||
| a. Inventories | 8,00,000 | 3,00,000 | |
| b. Trade Receivables | 12,00,000 | 10,00,000 | |
| c. Cash and Cash Equivalents | 2,00,000 | 2,00,000 | |
| Total | 40,00,000 | 30,00,000 | |
