Question

Attempt the following: Write a letter to the debenture holder informing him/her about conversion of debentures into equity shares.

Hint:

When writing a conversion letter, always refer to the authority for conversion (Prospectus, EGM resolution). Clearly state the conversion ratio, the number of securities held, and the number of securities to be received. Provide clear instructions on the next steps for the security holder.

Answer 1

\begin{center} ZENITH INDUSTRIES LTD.
\textit{Registered Office: Zenith House, S. V. Road, Andheri (W), Mumbai - 400058}
[2pt] \hrule \vspace{4pt} CIN: L23456MH1998PLC098765 \quad Website: www.zenithindustries.com
[4pt] Email: investor@zenith.com \quad Phone: 022-12345678 \quad Fax: 022-87654321 \end{center} \vspace{6pt} Ref No: ZIL/DEP/REN/123/25-26 \hfill Date: 10th September, 2025 Mr. Rohan Mehra \ A-301, Harmony Heights, \ Bandra (W), \ Mumbai - 400050. Sub: Conversion of 10% Convertible Debentures into Equity Shares Dear Sir, This is to inform you that as per the terms stated in the Prospectus for the issue of 10% Convertible Debentures and as approved by the special resolution passed in the Extraordinary General Meeting held on 15th June, 2023, the debentures are due for conversion. In accordance with the above, your 100 debentures will be converted into equity shares in the ratio of 2:1, i.e., 2 equity shares for every 1 debenture held. Accordingly, you are entitled to receive 50 equity shares of rupee 10/- each in lieu of your 100 debentures. You are requested to surrender the Debenture Certificate No. DC890 to the company's registered office on or before 30th September, 2025 to enable us to issue the Share Certificate. Thanking you, Yours faithfully, \ For Zenith Industries Ltd., (Signature) \ Mr. A. B. Chavan \ \textit{Company Secretary}