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Business communication book 1 st mba @ bec doms Document Transcript

  • 1. Business Communication BSPATIL 1
  • 2. CONTENTS1. Communication in Business2. A Good Business Letter3. Commercial Correspondence4. Format of Business Letters5. Circular Letters6. Sales Letters7. Follow up Letters8. Trade Enquiries9. Offers and Quotations10. Trade Offer11. Status Enquiry12. Confirmation of Orders13. Complaints and their Adjustments14. Collection Letters15. Making Payments16. Application for Situation17. Banking Letters18. Agency Correspondence19. Corresponding with the Government20. Drafting of Reports21. Secretarial Correspondence22. Import Trade Correspondence23. Export Trade Correspondence24. Writing of Minutes25. Letters to Editors and Complaints to Personnel26. Insurance Correspondence BSPATIL 2
  • 3. Chapter I COMMUNICATION IN BUSINESSObjectives of CommunicationCommunication is a means by which different persons are linked together in a group or organization toattain a common goal. No group activity is possible without communication. it enables the members toco-ordinate, to exchange and to make progress. A good communication should aim at making everyoneconcerned aware of the goal which the organisation wants to achieve. The two main objectives ofcommunication are to inform and to persuade. A group of persons, whether a social community or abusiness firm, can pool their4 effort for a common goal only if all the members of the group know whatthey are working for a trying to achieve. Individuals and sections in a group will try to persuade oneanother to change one’s attitudes, ideas etc. so that the whole organisation may benefit. Effective andefficient perfo0rmance of work in any office calls for providing convenient and efficient means ofcommunication. the specific objective of each message may b e to instruct, to advise, to request and so on,depending on the nature of relationship between the transmitter and the receiver. Communication may bedownward –top to bottom, upward-bottom to top or horizontal-between persons of same status. Let usbriefly look into the goals/objectives of communication. 1. Information GivingInformation may be given orally or in writing. The basic objective of communication is to turn the staticinto dynamic. Information effects decisions. Information needed for daily work can be given orally. If largegroups have to be informed, a meeting may be called. Good management believes in keeping employeeswell informed about the company’s aims, plans, progress and prospects about working and serviceconditions, training and promotions opportunities and the benefits available to them. For instance,farmers in India have simple organisation. They need information about weather, prices, availability toseeds, facility of irrigation, market trend etc. And these pieces of information are gathered from friends,relatives, through radio, television etc. On the basis of the information gathered a farmer takes decisions:“What and when to sow?” “From where to get seeds? “How to solve the problems of irrigation? “How andfrom where to get financial assistance?” etc.Many companies circulate news about their employees, their achievements and event their family affairs soas to create an atmosphere of social friendliness. However, pointless communication is a waste of time.The purpose of all communication is to bring about change for the better. Communication is intended toinfluence action is order to promote the common welfare of an organisation or a group. 2. Education is TradingEducation means imparting instruction, character building, enriching mental faculties, giving training tohuman being etc. Communication is vital in education. Education is achieved through communication.Employees are trained essentially by communication. Communication can be accomplished by means oflectures, discourses, books, cassettes, videos, seminars, conferences, study-tours, mock-sessions, casestudies etc. all education takes place by means of communication. a supervisor or any other personentrusted with the responsibility for training must have the ability to communicate. 3. MotivationMotivation means getting people to give their best. The manager communication with the people bemanages and motivates them. He has to get people to work as a team. The motivation of the employeesdepends upon the patience and sympathy shown by the management. Motivation cannot be achieved by asingle communication. It can be achieved only by a constant policy followed in all communications.Creation of healthy worker attitudes and good relations is a slow and continuous process, which takesplace through communication. it is always advisable to orientate the employees with the company’s target,aim, object etc. through communication. 4. Counselling BSPATIL 3
  • 4. Companies which are concerned with employees’’ welfare have counselling centres for their employees.Services of specialists are engaged for the purpose: and employees receive free medical advice, legaladvice and vocational guidance. Counselling can be successful if there is a two way communication. 5. PersuasionIncluding, compelling or prompting a person to do or to act, mostly in a positive way is persuasion.Managements try to persuade their worker to put in their best effort. Politicians persuade people in votefor them; teachers persuade their pupils to listen to them and study; sellers persuade customers to buy etc.Persuasion is an important objective of communication. Sales letters, advertisements etc. seek to persuadecustomers. When new policies or machineries are introduced, employees resist, fearing retrenchment. Inorder to accept the change, the managements must persuade them not to fear. Persuasion is more easilydone by a person who enjoys respect and confidence of those whom he wishes to persuade. a goodenunciation can make a person very persuasive. 6. SuggestionSuggestion coming from employees are upward communication. the employees actually involved in thework have a better understanding of the shortcomings and can make useful suggestions for improvements.In big concerns suggestions are collected at regular intervals by means of a suggestion box. They arerejected or accepted or further clarification is asked for from the suggestor. Communication is used toconvey suggestions or ideas. This is being constantly done is all human groups. Someone makes asuggestions and the others react to it. Such intercourse of ideas and suggestions is the moving force of allaction in a society or in any social group like a family, office, factory, state, nation etc. effectivecommunication promotes the acceptance. 7. Morale BoostingMorale is the state of discipline and spirit in a body of workers, army or nation. Morale must be kept highwith constant effort and regular and consistent policy. Rumours of close down, a take over, retrenchmentetc. cause anxiety and fear in the minds of employees. When morale falls, communication has to bestepped up. When employees are in fear, the top management has to reassure them ad keep up theirmorale. Special morale boosting communications have to be well-timed, carefully planned and coordinated.They must fortify workers against debilitating frustration and inspire them to put in hard work that canproduce good results. 8. AdviceAdvice is opinion about what to do, how to behave etc. Therefore it is a kind of information. Parents advisetheir children. Grown-us advise young ones. Teachers advise pupils. Politicians advise everyone else.Advise means opinion given as to the action to be taken. Advice is most effective if it is oral – face to face.If the advice is on official matters, the senior can speak with authority. If the advice is on personal matters,it can be offered as a suggestion. However, good communication, in the form of advice facilitates thedetection of defects and drawbacks and good results may be expected in a given situation. In any sense ofthe word, advice denotes some communication which is aimed at bringing about a change. 9. WarningTo warn means to give notice to. A warning may be given orally or in writing. A written warning is oftencalled a memo. Warning may be given to an employee for his indiscipline. Groups may also be warnedagainst activities that disrupt or obstruct smooth functioning or regular work. At first an attempt is madeby advice, request, suggestion, instruction, orders etc. When all these fail, a warning is given. 10. AppreciationAppreciation of initiative, good effort and work by employees is very useful for creating a good attitude. Itmay be conveyed orally. If given publicly, it has better effect. Letters of appreciation will certainly boost aflagging morale. BSPATIL 4
  • 5. Man is a social animal. He fosters relation with his fellow-men by means of effective communications,such as listening, speaking and writing. The story of civilizations and culture is, to a large extent, the storyof man’s advancement in the art of communication. the transformation of our planet into a global villageowes much to modern communication systems such as the telegraph, the telephone, the television and theinternet.The life blood of a business organisation is purposeful communication. it transfers thought from oneperson to another. It directs controls and evaluates each and every activity of the organisation. No groupactivity is possible without communication.Aims of Good CommunicationGood communication aims to reaching the goals which the organisation wants to achieve. According toScott, “Administrative communication is a process which involves the transmission and accurate replicationof ideas ensured by feedback for the purpose of eliciting actions which will accomplish organizationalgoals.” The message to be given is the information, which is to be transferred from one to another in aneffective manner. If the message is understood by the reader, communication is said to have served thepurpose. Our letter is our ambassador. It reaches where we cannot reach a business letter represents thefirm or the business house from it springs. The letter must strengthen the friendship between twobusiness houses or the customer and the dealer.Barriers to CommunicationBarriers are the obstacles which cause problems in communication. When an organisation is large, it willconfront more obstacles. The problems or the difficulties are called barriers to communication. the chiefaim of communication is to get a definite response. A perfect act of communication takes place when theinformation as aimed by the giver is passed on and is understood by the receiver. Organizationalcommunication is totally a human oriented process. The failure of communication is mainly a humanfailure. Despite the development of high speed electronic devices communication does not alwaysaccomplish what it aims at. Communication barriers lead to misunderstanding and conflict.Miscommunications can originate at three levels : at the level of eh transmitter, of the medium or of therece4iver. There are mainly three types of communication media – (i) Oral, (ii) Written and (iii) Gestural. Allthese media have their relative merits and limitations. A proper selection of media can add to theeffectiveness of communication, while improper selection of media may itself act as a barrier to it.See the following examples: COMMUNICATION BARRIERS Noise Time and Distance Interpretation of words Inattentiveness Sender of Message Premature evaluation Receiver Unclarified Assumptions Status Block Closed Mind Organizational Barrier BSPATIL 5
  • 6. Resistance to Change (i) A Sales Representative generally sends his sales report to his firm. If he writes the report in lengthy letters or talks loosely on phone, he fails to communicate the right purpose. If the reports are in a tabular form or diagrams, the receiver can clearly grasp the situation, at the first sight. (ii) When a worker, who is guilty of misconduct in a factory, wants to apologize to his foreman, a written explanation alone will not be sufficient. A face to face communication will definitely lead to an amicable solution.A brief explanation of each of the above: 1. Noise: Noise is quite often a barrier to communication. Noises, mechanical as well as natural, are a barrier to effective communication. They distract both sender and the receiver of the messages. For example, a factory that employs noisy machines hinder oral communication, Conversation becomes difficult due to physical noise and hence the messages get distorted and unclear. 2. Time and Distance: Smooth flow of communication is quite often affected by the time and distance. There is no doubt that the development of computer technology has made communication very fast and it has even overcome the space barrier. However, sometimes owing to the breakdown of modern equipment, communication is interrupted or delayed. Conveying a message at the right time to the right place is essential. Imperfect and delayed information is of little use and often creates confusion. 3. Interpretation of Words: Communication is carried on through words, whether spoken or written. Words are capable of communicating a variety of meanings. When the giver uses words or phrases which have a variety of meaning, the listener may not get the proper message or understand it in a different sense. It is possible that the receiver of a message does not assign the same meaning to a word that the sender has intended. This may lead to miscommunication. 4. Inattentiveness: When the receiver does not pay complete attention to the message, communication becomes ineffective. Many people do not pay proper attention when others speak. Inattention leads to inadequate absorption of messages. Attention is guided by self-interest. All messages should be received with full attention. Concentration is very essential. A person may be inattentive when he considers the message as superficial or uninteresting. 5. Premature Evaluation: Most people exhibit a tendency to evaluate while communication is being carried on. But this leads to premature evaluation and thus hampers communication. it is not advisable to jump to conclusions. Evaluation should b e made only after getting complete information. 6. Unclarified Assumptions: Many a time communication suffers because of vague or unclarified assumptions. When authority is delegated, it should be clear. One should know clearly what one is expected to do. It must be clear in the message itself. Unclarified assumptions lead to complications. 7. Status Block: Every organization has some kin d of hierarchical system. Some persons have higher status than others. People in senior positions develop the feeling that they know everything as to how to run the business. People of lower status do not feel free to talk to their superiors. It is generally seen that executive spend their time in “telling” and “commanding”. But they do not listen to or ask opinions of subordinates. This negative attitude of executives is a barrier in the process of two-way communication. 8. Closed Mind: A person who assumes that he knows everything will be rigid and dogmatic. Such a person is of limited intellectual acumen and narrow interests. When a junior comes to an executive with some new ideas, the executive should listen to him with an open mind. However, if he is closed minded, communication will breakdown as he is not prepared to consider his junior’s ideas. The junior consequently, fails to take advantage of the junior’s ideas which may be original, BSPATIL 6
  • 7. creative, brilliant. 9. Organizational Barrier: The classical organizational structure with a scalar chain of command restricts free and frequent communication. When the organisation, orders and information have to pass through many levels of authority. Too many levels intervene causing delay in transmission and distortion of the message. The more complex the organisation, the more difficult it becomes to ensure that correct information is passed on to the right person at the right time through the right medium. 10. Resistance to Change: The resistance is an important obstacle to effective communication. there is a general tendency among human beings to maintain status-quo. Change frightens them. They lack the spirit of adventure. They turn a deal ear to new ideas and glorify the past. They cease to be receptive to communication. then conservatism this becomes a barrier to communication.CorrespondenceThe term “correspondence” means communication by exchange of written messages. Commercial orbusiness correspondence, as it is now-a-days called, refers to the written communication relating tobusiness of any interest to both the parties, between whom messages have been exchanged. The purposeof letter writing is to pass on the information to the recipient without personal contact. Written wordsconvey the meaning and feeling of the message.Words are the symbols we use to express out ideas. They are the tools of effective communication. thebest words in the best order have tremendous power and appeal. They convey our thoughts to otherpeople in language that is unmistakably clear and readily understood. To write effectively you must choosethe right words and use them to express yourself clearly, concisely and directly. You must not fall into thetrap of pompous and unfamiliar words and roundabout phrases. Choose the language that bestcommunicates your message.Communication is a two-way traffic. The communication between two parties fail for a number of reasons.Make a firm note of the following: 1. A letter containing a badly expressed message or written in an unintelligible language finds a place in the recipient’s waste basket. 2. An inaccurate letter leads to inefficiency. 3. A communication succeeds only when the person being communicated to respond positively. To achieve this the letter must be persuasive. 4. People will be repelled by letters written in a roundabout way or discursive style.Principles of Effective CommunicationModern business is busy, complex and comp0etitive. Buying and selling is done rapidly. Every business isinextricably bound up with several others. There is competition among different brands of a product andalso among different sellers. Time is precious. The following broad principles may be followed when youwrite business letters: 1. Business letter-writing calls for a plain style-a style i.e., simple clear and easily understood. 2. To write clearly one must think clearly and have a clear awareness of the purpose of his letter. 3. Clear thinking and precise expression go hand in hand. 4. As a rule, common expressions must be used in writing. BSPATIL 7
  • 8. 5. Select the right medium of communication.6. Try to give sufficient information to avoid further clarifications.7. Try to create a cordial atmosphere.8. Couch the message in clear and unambiguous terms.9. Cultivate friendly personal relations adopting a friendly style.10. Do not write any wrong or misleading information. BSPATIL 8
  • 9. Chapter II A GOOD BUSINESS LETTERImportance and Functions of Commercial CorrespondenceIn the field of trade and commerce, business letters of commercial correspondence have played asignificant role. Letters are the only channels which facilitate the firm to maintain a constant touch withthe other business. Easy and effective conveying of information is possible through letters.A good business letter, of course, is expected to invite new customers and retain the old ones, thuspromote the business. It creates a link between the buyers and sellers, who have never met nor are likelyto meet. It can maintain close business relations. Therefore, a business letter acts as a messenger.Effective e business letters are the “lifeblood” of modern business because expansion of business ormarket from one corner of the world to another is possible in the cheapest manner.In the business world, time is a precious factor. One cannot waste time by dealing with the person throughtalks, but can conclude through letters. Moreover, writhing makes a lot of difference when compared totalking because people woll have more faith in pen (letters) than in tongue (talks). Further, the possibilityto commit errors through letters is far less when compared to verbal dealings.A good business letter can: 1. Attract new customers. 2. Bring back lost customers 3. Sell goods and services 4. Adjust complaints 5. Open new markets 6. Encourage dealers 7. Create goodwill 8. Collect bad debts 9. Act as a messenger and III Chapter 10. Compromise disputes COMMERCIAL CORRESPONDENCEQUALITIES OF A GOOD BUSINESS LETTER 1. Language: Good composition is invaluable in commercial corre-spondence. A well-written letter will be effective on the reader. A personal meet can be substituted by a good letter written in good language. A letter must have a good start to create an impression on the reader. In a business letter, proverb, and poetry have no place. To be simple, idioms, long phrases etc. should be avoided. The main object of business correspondence is to communicate a definite message clearly, concisely and in an interesting manner. 2. Clarity: Literary language should be avoided to create a clear and straightforward meaning. A good letter shows its idea directly and clearly. Each sentence must be as simple as possible. Whatever BSPATIL 9
  • 10. has to be communicated, must be stated clearly. Clarity can be attained only when we have a clear idea of what we want to say. “To convey your feelings as a writer you have to rely solely on the words you choose and the way in which you use them.”3. Coherence: (connection): A letter must be so well-planned that the reader is able to understand it even on the first reading. A lifeless business letter may not have any effect on the reader. If there are many subjects to be stated, the letter may be divided into paragraphs and written step by step. If the letter is confusing, the reader has to read the letter again and again.4. Completeness: The form of a business letter should be understood properly. (The form of business letter is dealt with separately). The form of a letter consists of the name of the firm, the name of the place, date, reference number, inside address, salutation, complimentary close, signature, etc. Enclosures, if any, must be properly mentioned in the letter and they must be securely attached. The body of the letter should give clear and complete information to the reader. The contents or the body of the letter must possess essential points that the reader has to know. If the letter gives only part information much time is wasted in clarification and explanations by additional correspondence. Hence while writing a letter, think properly and communicate to the reader all those points he needs to know. He should also understand the writer’s purpose clearly from the letter.5. Conciseness (brevity): A letter must be as simple and brief as possible. Time is valuable for both the writer and the reader. One should not beat about the bush in a business letter. Vague words and roundabout ways of expressions should be avoided. However, businessmen will always be busy. They may not generally waste time in going through long letters. What is superfluous should not be written. Completeness should never be sacrificed for brevity. The easiest and simplest way to write good letters is to write as if the reader is sitting at your table i.e as if you are speaking to him in person.6. Correctness: A good letter is always correctly written and is always in correct form. The letter must be free from mistakes, errors of punctuation, mis-spelling, grammatical incorrectness etc. The information you write must be accurate. Inaccuracy destroys confidence. Whatever is stated in a letter should be capable of being believed by the reader. “The pen is mightier than the sword”, is applicable in business and commercial correspondence.7. Courtesy: Commercial correspondence must be courteous. Courtesy costs nothing. In business, courtesy is a must. Courteous letters win friends, enroll new customers, retain old ones and win similar others favours. They also win sympathy, respect and mutual understanding. A discourteous letter is probably more detrimental than personal discourtesy because a written word is permanent. Courtesy can be shown in a variety of ways in the general tone of the letters, addressing a person by his proper title, making prompt reply, complying with his request etc. Phrases like, “we regret”, “I am sorry”, “please”, “may we”, “we appreciate”, etc. induce the reader to respond to the writer.8. Consideration: One correspondence expert says, “When writing a letter put yourself in your correspondent’s shoes, sense his feelings and anticipate his reactions”. The reader should know that the writer is aware of and is doing something for the reader’s needs and problems. A successful letter will naturally concentrate on the reader’s intere3sts and take into account his problems, and convenience. Consideration comes from courtesy.9. Concreteness: It mean s giving the fullest possible information consisting of facts and figures, correlated information, suffusion, experimental results, etc. It is very important in sales letters, letters of introduction, etc. The idea or the information you write in your letter must be unchangeable. One must be firm in one’s opinions. BSPATIL 10
  • 11. 10. Character: The mark of individuality is called character. A business letter should possess character. A letter must be able to attract the attention of the reader. Letters lack originality, when proper attention is not given to their planning and composition. 11. Cheerfulness: In commercial correspondence negative or pessimistic approach should never be there. Letters aim at earning the goodwill of the reader. It is always possible when a letter is begun with positive and optimistic approach. The approach through the letters must always be friendly and convincing. As far as possible, avoid the use of foreign or unfamiliar words, insulting or flattering words, etc. 12. Convincing: The letter written should convince the reader as to the facts mentioned in it. When a new product is introduced in the market, the letter should say that the firm manufactured the product, after a couple of years of research: the quality has been approved by the Indian Standard Institute and a copy of the approval letter is enclosed. Each business letter asks the reader to take action. If it wins the confidence of the reader he will positively respond to the request. “A good open business letter serves as master key that opens locked doors. It opens the way for your goods or your services. It tells the story of the real character of the firm.” HN Casson. 13. Conversational: A letter clearly only when it is simple and natural. The whole secret of good business letter-writing is to write in an easy natural way. Make your letters sound as much as possible like good conversation. A good letter should not contain difficult words and obsolete usages. The letter’s tone should be friendly and natural. There was a time when ‘peculiar’ expressions were used in business letters, which made them stiff and formal. Now the tendency is to write in a simple, natural and almost conversational style. A business letter is nothing more than a conversation. Write the way you speak. For examples: Why say, “In compliance with your request” when you can say “as requested”? Similarly, why write “due to the fact that” when you can write “because”?The Characteristics of A Good Business Letter 1. Faultless composition is invaluable in commercial correspondence 2. A good letter should convey its idea directly and clearly. 3. The reader must be able to comprehend it on the first reading. 4. A letter must be as simple and brief as possible. 5. It must be accurate. 6. It must be courteous. 7. It must be reader oriented. 8. It must be free from vague and indefinite statements. 9. It must aim at earning goodwill of the reader. 10. It must be convincing. 11. Its tone should be friendly and natural.Writing Good Letters BSPATIL 11
  • 12. The qualities of a good letter have been studied in the preceding section. In general, there is no methodwhich is applicable to all letters. There is also no universal system to be followed in business letters. Everywriter has his own method of writing letters. But the above said qualities are adopted in writing businessletters. The writer should try to improve his own way of writing, A business letter should possess sincerity, courtesy, tactfulness, straightforwardness, completeness,correctness etc. Unnecessary details of generalization will merely confuse the reader. The reader shouldnot say, “I do not know what he is writing about.” Therefore, every planning of the central theme isessential. It is also essential that all necessary information is included. The letter should present to thereader the writer’s idea at once. The reader should not have trouble to understand the letter. “Communication is effective only if the message received is understood in the sense intended by the writer.”The contents of a letter should be written in paragraphs, one by one linked to another by connectingthoughts. Paragraphing will help the reader to distinguish one piece of information from another.Good penmanship is an asset worth cultivating, because a great deal of clerical work in the office requiresto be done with pen and ink. Legible and clear hand writing will be valuable. Illegible letters may be leftunread. In general, a letter must be written in a clear handwriting.Well drafted letters addressed, in time, to the addressee are favourably appreciated. Businessmen areusually prompt in sending replies to letters. Personal attention given in replies naturally earns goodwill,which in turn, invites larger turnover. A well experienced businessman gives as much importance tobusiness letters as to his salesman. Because a businessman writes letters with the deliberate intention ofpersuading the addressee to respond positively, hence developing the ability to write good business lettersis of utmost importance. It is also a pointer to his competence as a businessman. A letter in fact takes theplace of a salesman and represents the firm sending it.Apart from the qualities of a business letters, the following guide-lines will help you to write effective andfruitful letters. The points are not explained as they are self explanatory. 1. Choose words that the reader can easily understand. 2. Use simple and everyday language. 3. Use appropriate and effective language. 4. Avoid jargons. 5. Prefer active verbs to passive ones. 6. Avoid redundant words. Verbosity repels readers. 7. Do not use clinches. 8. Avoid roundabout way of writing. 9. Avoid unnecessary repetition of thought 10. Avoid ambiguity; state the facts precisely. 11. A clear composition shows clear thinking. 12. Avoid excessive details. 13. Be courteous and considerate. 14. Always respect your reader 15. Do not write irrelevant ideas. 16. Do not write to a wrong person. 17. Goodwill must be generated. 18. A business letter must be brief. 19. A business letter must be complete. BSPATIL 12 20. Al the information that the addressee requires must be given.
  • 13. HOW TO WRITE GOOD LETTERS ESSENTIALS OF GOOD BUSINESS LETTERS 1. Think about what you want to say 1. A business letter is an ambassador of before you start to write. the writer. So be courteous in writing. 2. Jot down all the points you wish to 2. Courtesy can further be shown by write: never mind the order. prompt reply. 3. Now rearrange the points in the logical 3. Precision and clarity must be order. maintained thought-out the letter 4. Have a clear ideal of the character of 4. The letter must facilitate to achieve the person you are going to write to. your objective. Clear objectives lead to easy writing. 5. Begin with a short paragraph stating 5. “You” attitude must be followed, why you are writing; you can refer to a instead of “I” and “We”. letter received by you and mentioned the subject of the correspondence. 6. The actual message can be written in 6. Confused thinking or mixing-up of the second paragraph. facts must be avoided. 7. The closing paragraph usually leads to 7. “Look before you leap and think before some action on the part of the reader, you speak”. Similarly, collect all it asks him to write back, or to place an essential facts and materials before order, or to write to someone, or to you reply letters. look into some complaint. 8. “You” attitude is the secret of effective 8. The letter must evoke a friendly letter. response from the reader. 9. The language must be friendly. 9. Good letters create goodwill and cement lasting associations. 10. Remembers, a short well-thought-out 10. The letter should have visual appeal. letter has life.After Writing a letter, ask yourself the following: 1. Does the letter SERVE its purpose? 2. Are the contents RELEVANT to the addressee’s need? 3. Does the letter carry ACCURATE facts? 4. Are the ideas CLEARLY expressed 5. Is the letter FREE from DISCOURTEOUS and UNPLEASANT LANGUAGE? 6. Does the letter RESPECT the reader? BSPATIL 13
  • 14. 7. Does the letter convey the idea at FIRST READINMG? 8. Does the letter ensure the GOODWILL of the firm? 9. Does it perform the FUNCTION OF A SALESMAN? 10. Lastly, can the letter create DESIRED IMPRESSION on the reader? Chapter IV FORMAT OF BUSINESS LETTERSThe structure of business letters is somewhat different from the form of letters to relatives and friends.They are more formal in style and expression than friendly letters. The reader must know at a glancewhere the letter comes from, who wrote it and such other details.For the sake of convenience, let up split up a business letter into the following parts: 1. Heading 2. Date 3. Inside address 4. Attention line 5. Salutation 6. Subject and Reference 7. Body or substance of the letter 8. Complimentary close 9. Signature 10. Enclosure I. Intended Form/Stepped In FormBRIGHT TRADERSHussain Road, Lucknow – 226001 24th April, 2002Mr. Writer, Horby Street, New Delhi – 110040Dear Mr. Writer, This letter is written in intended form. It is important to note that the first line of each paragraphbegins after leaving considerable space from the left-hand. The inside address is also in intended form.This type gives a good view. Uniform space is provided to have a pleasing appearance.Five or ten spaces may be allowed from the margin for every new paragraph. BSPATIL 14
  • 15. Your sincerely (S. Ramu) Manager II. Hanging Indent Form SCHOOL OF COMMERCE Marg Street, Allahabad – 211 033 24th April, 2002Mr. Writer,College of Economics,Chennai – 600010Dear Sir,In hanging indent form, the inside address and salutation are typed as in the block form. Thefirst line of each paragraph begins flush with the left-hand margin. The remaining lines of eachparagraph begin about five spaces away from left-hand margin.Double spacing is used between two paragraphs, but only single spacing between the lines.This form is convenient and is not in common use. However, in sales letters, it is preferred toattract the attention of customers. This form has no place in private letters. Yours sincerely, General Manager. III. Full Block Form THE CORRESPONDENCE SCHOOL M.G. Road, Coimbatore – 641 013 24th April 2002Mr. WriterHorby Street,Agra – 282 015Dear Mr. Writer,The block style of this letter is modern. This type is widely used in America. Every line of theletter begins from the left-hand margin without allowing space. Only essential punctuations aretyped. BSPATIL 15
  • 16. The block type is preferred, because the carriage of the typewriter need not be adjusted. This saves time and it is easy for the typist. Remember that inside address, each paragraph, complimentary close, signature, etc., begin, from the left-hand margin. Remember, a generous margin avoids shabby appearance and gives clear view. Yours truly, (Manager) IV. Semi Block Form THE COMMERCIAL SCHOOL Gohala Road, Mumbai-400017 24th April 2002 Mr. Letter Writer, Great Mill Road, Kanpur. Dear Sir, The semi-block form is a combination of block and intended forms. The inside address is typed in block form, but the paragraphs are typed in intended form. In the body of the letter, the first line of every paragraph is intended five or ten spaces. The complimentary close, signature and the writer’s designation come at the right – hand corner, below the body of the letter. Allow four or five spaces for the writer’s signature. Yours sincerely, (Manager)Remember to Avoid: 1. expressions which insult the reader; 2. expressions which offend the reader; 3. expressions which irritate the reader; 4. expressions which are ambiguous in meaning; 5. expressions which are tactless; 6. expressions which are threatening; 7. expressions which beat about the bush; 8. expressions which have to meaning; BSPATIL 16
  • 17. 9. expressions which are badly spelled; 10. expressions which are ungrammatical.While writing a business letter, remember, a businessman aims at the basic functions, such as: 1. To win the confidence of the reader 2. To get a thing done by the reader 3. To influence the reader 4. To show clarity and sincerity of purpose 5. To give importance to the addressee 6. To get goodwill from readers 7. To facilitate understanding of contents 8. To avoid confusions 9. To convey a concrete idea 10. To conclude a transaction favourably Essential Parts of a Business Letter Name of the firm with Phone: Address Gram: Date Code: Reference Inside Address Attention Salutation Introductory para Para, communicating the Concluding para Complimentary close Signature Post script, if any 17 BSPATIL Enclosures, if
  • 18. BSPATIL 18
  • 19. Chapter V CIRCULAR LETTERSCircular letters are the cycle of business dealings. A circular is a communication meant to conveyinformation of a business firm to customers, business friends etc. in the course of business occasions willarise to send out circular letters. The sender aims at giving certain information to the public. There arealso other ways to communicate or advertise in newspapers or journals.Generally printed or cyclostyled circular letters have a few advantages such as (a) less expenses, (b) anynumber of letters can be posted in a day, (c) to a certain extent the personal meet of the sales agents canbe substituted, and (d) the recipient, if interested, may call upon the firm or the sales agent, and so theagent need not wait to have an appointment.The objectives of circular letters are: 1. To obtain publicity for a merchandise. 2. To impress the readers with the facts about the firm and the products. 3. To make the readers more interested in their contents. 4. To attain the confidence of the readers. 5. To stimulate sales.Let us discuss a few examples of such circular letters: 1. Establishment of a firm. 2. Admission of a partner. 3. Retirement of a partner. 4. Death of a partner. 5. Shifting of a business to new premises or opening a new branch. 6. Conversion of firm e.g. Partnership firm into Limited Company. 7. Authorization of power. 8. Agency etc.A circular letters is one that carries a communication to a number of addresses. The basic differencebetween a circular and a general letter is that, whereas the former is addressed to many persons, the latteris addressed to only one person. Circular letters are to be read by a large number of people, whereasgeneral letters are personal and private in nature. Therefore, circular letters must be specially well writtenin clear and understandable language, for example, a company having a large numb er of shareholders hasto send frequent circulars to them for making calls on shares, dividend purpose, etc.Circulars have certain special characteristics. They are usually printed or cyclostyled. The inside address ofthe recipient of a circular letter is sometimes omitted, when the letter is under cover of an envelope. Asregards the salutation, general form is, Dear Sir/Madam. The Signature must appear in circulars, and itmay be facsimile. BSPATIL 19
  • 20. Some Model Letters followModel 3 : Announcing the opening of new businessTes. 3242 Imports: Technical aids,Gram : NEW ENTER Technical Machine, GREAT ENTERPRISES Chamber Road, Sadar Street Mumbai – 400018 Dated 30th Aug. 2002Ref. Noi. Tax/Cir/24,……………………………………………………………………… Knitting MachinesDear Sirs,We are pleased to inform you that we have been appointed as the sole selling agents for the knittingmachines manufactured by the Indian Knitting Machinery, Company, Bombay who are specializedmanufacturers in this line.To give a clear understanding of products we enclose a brief description of machineries. You will also beglad to know that these machines are exported to foreign countries like Africa, Iran, Australia and manyother developed countries.We are confident that these machines will be quite interesting to you specially because they are designedto produce fully fashioned fabrics and all types of garment. Moreover, these machines are also capable ofgiving increased productivity and are simple to operate.We will be glad to supply you the complete literature about these on hearing from you. Yours faithfully, For Great Enterprises. While drafting the circular letters, the following points have to be remembered: 1. The letter must have a personal touch 2. The letter must be complete in all respects 3. Avoid promises which you cannot keep. 4. The language must be polite and attractive. 5. It should be free from errors. 6. The opening para should arrest the attention of the reader. 7. Body of the letter should arouse and sustain his interest BSPATIL 20
  • 21. 8. The letter must have a beautiful get –up. 9. A warm and friendly tone may be used.Model 4: Announcing the formation of a limited company:Phone : 2542Gram : JAMESCO JAMES MORTON & COMPANY LTD. Church Gate,No. J4/Circular Manchester 30th Aug. 2002Dear Sir, On behalf of the Director of “James Morton & Company Ltd.”, I take this oppoprtunity to inform youthat the business of Morton Company will be-continued under the name and style of ‘James Morton &company Limited’ from today viz, 30th Aig. 2002 the family of the late Morton Esq. taking a large interestin the new concern and Mr. Smith, his son being one of the directors.Among several friends, who have also taken a large interest therein. In have great pleasure to inform youthat we formed an Advisory Board consisting of 12 members to make the produce cheap and useful.The directors have agreed to continue the business with the staff of the previous firm and they areexperienced in this particular line. We will be setting up a new factory by the beginning of September 2002.The company is prepared to execute all orders entrusted to them, with utmost care and on speciallyadvantageous terms.While thanking you, as one of the numerous friends of the late firm, I request you for a continuation ofyour confidence in the new company and assure you that all future orders and contracts will be executedwith the same care and promptness as hitherto. Yours faithfully (General Manager)Model 5: Circular letter of a retiring partnerPhone : 645Grams: RAMCORAMGOPAL & COMPANY Kali Temple Road Agra – 282001……………………..……………………..……………………..Dear Sirs, BSPATIL 21
  • 22. It is with regret to inform you of my retirement from business on account of my old age and failing health.My retirement will not affect in any way the business of the firm with which I have been connected for somany years. My other partner4s have already made most satisfactory arrangements to carry on thebusiness under the same name and style. My nephew Mr. Paul who brings an additional capital of Rs.20,000 into the firm will be admitted as a new partner. His smartness and experience in the business line,combined with the experience of my old colleagues, I feel confident that the firm will succeed inmaintaining the fair name and reputation of the firm in future years. I trust, you will be so good as tocontinue to extend your patronage to the new firm in the future as you have done in the past.I shall always remember with feelings of satisfaction the friendly relations that have covered so many yearsbetween us.I wish you the continues prosperity. Yours sincerely, P.K. JohnModel 6: Expansion of business DE JOHN & COMPANY (Manufacturers of Steel Furniture) New Delhi – 110018 30th Aug. 2002Cir/56………………………………………………………………Dear Sir, The object of this letter is to inform you that we are aiming to start a branch of this firm in Maduraias we are receiving many enquiries and orders from that place. In order to give more satisfactory service toour valued customers of Madurai region, the firm will be situated in the heart of the city, with the followingaddress. DE JOHN & CO. Br. Office, College Road, Madurai-625001We are sure that you will appreciate our expansion of business. We invite you to pay a visit to our newbranch at your earliest convenience.Mr. Smith, who was at the Head Office for 10 years, in charge of the execution department, is the Managerof the Branch at Madurai. His personal attention and abilities will please the customers, in every respect.The branch will start functioning most probably by the 15th of Sept. 2002. Therefore all your enquiries infuture may please be sent to new branch. BSPATIL 22
  • 23. We trust that the pleasant business relations, which have existed between us, will be continued with thenew firm, where direct relation is possible. Yours sincerely For De John & Co.Model 7 : Informing change in personal matter BEST GARMENT CENTRE Pattom Road Mumbai – 400012 30th Aug. 2002……………………………………………………………………………… Mr. Sethuram – Sales RepresentativeDear Sir,We regret to announce that Mr. R.M. Berry, our valued and energetic Sales Representative has tendered hisresignation with effect from 15th September 2002. Therefore, he will cease to be in our service from thesaid date.Arrangements have been made to transfer Mr. P. Sethiuram in his place. Mr. P. Sethuram, as some of ourcustomers will remember, has previously served in your area. Thus he is not a new representative. We aresure that he will enable us to maintain our best relations in a satisfactory manner.We take this opportunity to wish you and your firm a prosperous future. Yours sincerely For Best Garment CentreModel 8 : change of address EDWARD & COMPANY LIMITED Mincing Lane, London E.F. 2 20th Aug. 2002……………………..……………………..…………………….. Change of AddressDear Sir, BSPATIL 23
  • 24. This is to inform you that owing to lack of spaces, we are compelled to seek for more commodiouspremises. Accordingly, we have decided to shift to Chruch Road, which is about 2 kilometres from theexisting firm.We therefore, request you to send all your communications, after 10th September 2002 to the new address: EDWARD & CO. LTD. CHURCH ROAD LONDON E.C. 2We trust that the new premises, being more commodious and central in position, wil certainly beconvenient to you.Yours faithfully,For Edward & Co. Ltd.Model 9 : Introduction of a Partner S. CHAND & COMPANY Ramnagar, New Delhi – 110055 Dated ………..………………………………………………………………………………………. Introduction of a new partnerDear Sir,We are pleased to inform you that we have this day admitted to our firm Mr. Banerjee who has greatexperience in this line.We are fully confident that Mr. Banerje will have keen interest in the welfare of our five and contribute toits further development.We thank you for the cooperation you have been extending to our firm in the past and earnestly hope thesame will be continued. Yours faithfully For S. Chand & Co.Model 10: Announcing price reductionGarment Palaced M.G. Road, Mumbai – 400109 7th July, 2002Dear Customer, BSPATIL 24
  • 25. You will be pleased to know that during this month, we offer you at extra-ordinary REDUCED PRICES of allreadymade garments. The range of colour, designs and sizes takes you to a land of dreams.When?: This Reduction Sale begins from 8th July and ends on 31st JulyPlace: High Ground, Mumbai – 20Time : From 8.00 A.M. to 10.00 P.M. except Sundays.As a special offer, we shall make reductions from the regular prices that will show you a savings, in almostall the items, of 35-40%.So hurry up. Visit us soon.Delay may disappoint you.We have only limited stocks.Visit and select items without delayThanks Yours sincerely,Model 11 : Sale of a business RAM AND SONS East Car Street, Madurai – 625002 8th August, 2002………………………………………………………………Sir,Let us thank you for your confidence in us in the past.Owing to our old age and continued ill-health, it has become imperative on us that we should retire b ydisposing of our interest in the firm.We thank Mr. R. Gopal, who has been our Accountant for many years, for his offer to take over thebusiness from this day with all its assets and liabilities. By this act of takeover, Mr. R. Gopal becomes thesole proprietor of this firm. He will receive and disburse all dues and claims outstanding. You will be gladto find him highly efficient and a man of full knowledge of transactions concerning the business.We appreciate your patronage and relations existing between you and this firm. We fully hope that you willextend the same favour to Mr. R. Gopal, who is ready and competent enough to maintain the old traditionsof prompt and sincere service of this firm to all.Thanking you,Yours sincerely,(Old partners)Model 12: Clearance Sales TOPSONS LIMITED BSPATIL 25
  • 26. Topson Buildings, Highway, Kanpur, 8th August 2002……………………….……………………….……………………….Dear Sirs,The purpose of this letter is to inform you that we propose to demolish our present building in order toreconstruct it to latest model. This will necessitate to remove the goods to a new building. In order tominimize the cost of removal, we have decided to have a clearance sale of stock at reduced prices-15%down from the listed prices of all goods.Therefore, we extend our invitation to you to visit our shop at an early date. This is a rare chance for youto make all possible purchases, enjoying this substantial reduction in prices. At the same time, it isneedless to say that our stocks are of the best quality.The clearance sale commences on the 15th of August. We will be glad to see you in our shop as early aspossible. This is a rare opportunity. Your early arrival will facilitate you to enjoy a wide selection of goods.Your early arrival is appreciated.Thanking you. Yours sincerely.Introducing a new productHints: 1. Give news of the new product that you have introduced. 2. Describe the use of the product. 3. Physical features are to be high lighted. 4. Create interest in the minds of people. 5. Proverbs, eye-catching words, striking statements can be given.Model 13: Circular letter, introducing a new product RAM ENTERPRISES LTD. Ran Nagar, Bangalore 560002 Dated……………….Sir,Fresh and pure – these are just two of the reasons why you should have our BABY BUTTER on your diningtable.Manufactured with the help of improved and up-to-date machinery. BABY BUTTER possesses genuineflavour and natural delicious taste. The installation of modern appliances enable us to prepare ituntouched by hands and this ensures its purity. BSPATIL 26
  • 27. The BABY BUTTER is bottled in sterilized glass which containers are hygienically sealed to preventcontamination.Arrangements have been made for the delivery of BABY BUTTER to the door of our customers from ourown vans by our own men. This renders its adulteration in transit impossible.The enclosed phamplet will tell you what analysts think of BABY BUTTER. It is indeed after prolongedexperiments that we4 have been able to offer this butter to our customers.The demand for BABY BUTTER is continually increasing. The leading hotels and restaurants of Bangalorehave started using it. Very soon the demand of it will exceed the supply.Do you want pure and fresh BUTTER at reasonable prices? Kindly register with us your name andrequirements without delay by mailing us the enclosed proforma.Thank you for your immediate attention. Yours sincerely,Model 14: Obtaining an agency Ramco and company 179, Carbo Street, Cochin – 682001 10th Aug. 2002………………………………………………………Dear Sir,We are happy to announce that we have been entrusted with the task of marketing SPEEDO CYCLESthroughout Kerala State.These bicycles requires very little introduction to the market. It is needless to mention that SPEEDO CYCLESare world famous. The quality of the bicycles is above the average. The patrons of these bicycles areconvinced of their superiority in comparison with the similar products in the market.We have stored ample stock for immediate delivery and propose to offer you a liberal trade discount of10% from our catalogue price. We enclose a price list of all models for your ready reference.You have a great confidence in us for serving you to the best of our ability with promptness and superiorquality of goods. We feel sure that we are offering once more a commodity of unquestionable quality onthe most convenient terms.Let us look forward to you for an opportunity to prove that we are at your service with our presentstandards fully maintained.Thanking you. BSPATIL 27
  • 28. Yours sincerely,For Ramco & Company(Sales Manager)Model 15 : Circular letter – acquisition of a firm RAMLAL AND SONS Main Road, Bilaspur – 484 001 Dated………….Sir,We take pleasure in informing you that the Modern Stores, 240 C Nagar, Bilaspur has been acquired by us.We shall starts transactions from Monday, the 5th August.Our long experience in the line and bigger investment place us in a position to offer better goods to thecustomers. We continue to trade under the old name and make effort to adhere to our predecessor’s policyof found service on which the goodwill of the firm has been built.We propose to offer the old stock in a bargain sale next week on attractive terms.We hope you will be kind enough to extend your usual cooperation. Thanking you.Yours sincerelyModel 16: Reduction Sale MADANLAL TRADING COMPANY Madan Road, Lal Bazar, New Delhi – 110 005 Dated …………..Sir,With a view to making room for new stocks for coming season, we have decided to effect a Clearance Saleof the present stock, commencing from 1st August. We have planned for you a Grand Clearance Sale of ourstock. Prices Marked D O W N by 50% on all items.Furry UP !! OFFER OPEN TILL 10TH OF AUGUST YOU GET GOODS WORTH RS. 100 JUST FOR A PAYMENT OF RS. 50 BSPATIL 28
  • 29. The reduction sale will remain open till 10th of August. Hence you are requested to pay us a visit during theperiod.The goods offered in the sale are new and of good quality. You can take full advantage of this sale, just onyour visit to our shop.Your immediate attention is highly appreciated.Thanking you. Yours sincerelyModel 17 : Death of a Partner RAMDAS TRADERS Near Bus Stand, Virudhunagar ………………….…………………..…………………..………………….. Death of a PartnerDear Sirs, We regret to inform you that owing to the death of our beloved partner, Mr. Raman, we arecompelled to admit Mr. Lal as a new partner. He is fully conversant with the management of firm. Though the valuable services of Mr. Raman are lost the business will be conducted just as it hasbeen previously. There is no change in the firm’s name and in the constitution of the firm. We thank you for your confidence in the past and trust that you will give us an opportunity to provethat the present standard will be fully maintained. Yours faithfully, For Ramdas & Co. Ramdas (Partner)Apart from circulars, form letters are also used. A form letter is a kind of model letter and will be filled inappropriate blanks. These are used because it saves time from dictation and typing. If there are many formletters, they may be numbered. The typist has to type only the blank spaces.Model 18 : Dispatching as per order MURUGAN TRADING (Dealers in Type – writers) Mahal Road, Madurai – 625001 BSPATIL 29
  • 30. Dated ……………………………………………………………Dear ………………..Thank you for your order dated ………… for supplying ……………. Portable typewriting machine.The machine has already been dispatched on …………… through ………….. (carrier).The way bill and other documents for Rs………… have been sent through our ……….. (bank) .Our Sales Representative Mr. ……….. will call upon you on …… to see the working condition. Yours sincerely, For Murugan Trading (Sales Manager) BSPATIL 30
  • 31. Chapter VI SALES LETTERSPublicity has a very important role to play in a competitive society. No business can be done successfullywithout publicity in one or the other form. Publicity and advertising are impersonal form of salesmanship.A sales letter is just a part of publicity and advertisement. In the course of business, occasions arise whena seller wants to approach his customers in order to introduce a new item to promote sales, to push outone’s stock etc. letters sent out with this aim are known as sales letters. A sales letter is nothing but anadvertisement, aimed at a carefully selected group. A sales letter is a very useful instrument to call on aparticular group of customers.Sales letters are persuasive in nature. Many firms think every letter that goes out from the office is a salesletter, because every business letter aims at an opportunity to sell the firm’s product or earn goodwill forthe firm. To a certain extent the salesman is substituted by the sales letter, because the purpose of thesalesman and sales letter, is the same to push up sales. Therefore the function of a sales letter can becompared with that of the salesman. However, sales letter has certain advantages and disadvantages. SALESMAN SALES LETTER 1. It is expensive to appoint a salesman 1. It is very less expensive to operate 2. Sometimes the salesman has to make 2. It is sure that the letter will reach the repeated visits to the buyers for customers. But if a letter is drafted interviews. badly, it goes to the waste paper box 3. It is possible only in profitable 3. It is possible in all cases because of business. less cost. 4. It is evident that the salesman may fail 4. It is not so. Even if it fails, that costs if the customer is interruptive. nothing except the postage.In the modern trend all the business letters are sales-oriented. In a sales letter “you” attitude is alwayseffective. The letter must be viewed from the point of view of the reader. The tone and style of the lettermust be keyed to the reader’s interests and wishes. The aim of the letter must be to create an interest inthe mind of the reader and to convince him of the benefits.Drafting a sales letter will be in the forms of advertising, to create an interest in the mind of the reader. Ifa letter is effective, that ends in sales. The beginning and end of the letter will be attractive and areimportant.The first paragraph must catch the attention of the prospective buyers.e.g. Would you like to have an extra income of Rs. 2000 every month, in addition to your regular Pay. You can have a luxurious life, through the easiest jobs. You can have the answer against your question, in cash. The next paragraph will be produced with supports of facts and figures, guarantee and testimonials of the benefit.The next paragraph will be produced with supports of facts and figure, guarantee and testimonials of thebenefits.e.g. we are exporting the new products to Japan every year. The new technique of the products is highly appreciated. That is why the firm’s name is in its record performance.A sales letter may sometimes carry post cards or self-addressed covers which will persuade the reader toact upon.e.g. Tomorrow will never come. So why can’t you act now? Time is precious. Simply sign the form and mail it to us at once. BSPATIL 31
  • 32. You may write a line in the enclosed post card as the day and time convenient to you to meet our salesman along with free samples at your office.The writer also knew that, for the letter to be successful, it would have to: 1. Attract the reader’s attention; 2. Stimulate the reader’s interest; 3. Stress the benefits of the offer to the reader; 4. Convince the reader to act immediatelyThe purpose of a good sales letter has the following effects: 1. To confer a faith in the product. 2. To get an enquiry letter from the reader; 3. To create an interest in the mind by exposing actual facts, tests, surveys, opinions, etc. 4. To create a goodwill and promote sales;Apart from the above: 1. It widens the market; 2. It helps the customer to remember the product; 3. It educates the customers; 4. It functions as a salesman; 5. If facilitates a constant touch between the customers and the firm; 6. It secures orders for a Mail Order Business House.Functions of a Sales letterA sales letter has the following functions: 1. Attracting attention; 2. Arousing interest; 3. Educating and convincing; 4. Stimulating desires; and 5. Securing actionThe last para of the sales letter must successfully turn the reader into a customere.g. “We would not like you to miss this golden opportunity”. “The attractive bonus is open only for a couple of weeks, so act now”.Model 19: Special offer to old customersDear Sir/Madam,You will b e interested to hear, that we have decided to clear the present stocks of books at bargain prices.Only the old customers like you can enjoy the advantage, as the letters are being sent to the old customersonly. A price list of the books that shows the original price and the special discounts allowed to them, isenclosed for your reference. The stocks of these books are already on sale and are limited for two moreweeks. You need only to pay a lesser amount than the cost. You can avail of this rare opportunity.If you can spare a few minutes, please fill in the enclosed order form and post it today; the postageexpenses will be free if your order is for more than Rs. 100.You can take full advantage of this special offer. Remember, this offer is specially ment for our oldcustomers only.Delay will disappoint us. BSPATIL 32
  • 33. Yours sincerely, ………………..Encl : One bargained price list.Sales Promotion LettersThe aim of production is sales. Sales and promotion are two different words. Sales promotion is thecombination of these two words. Sales promotion increases the sales. Sales promotion methods aim tocapture the market and increase the sales volume. It is an important instrument in marketing to lubricatethe marketing efforts. Now – a – days sales promotion is necessary tool to boost sales. It aims in creatingdemand. It is right to say that sales promotion moves the product. A manufacturer must make thecustomers to know the product and he must influence them to buy that product. Unlike sales letters, theseletters effect indirect sale. The major objectives of sales promotion are: 1. To attract new customers 2. To simplify the job of middleman. 3. To create brand image. 4. To remove customer’s dissatisfaction, if any 5. To capture the major share of the market 6. To meet the competition of other firms 7. To create favourable attitude towards the product 8. To effect off season sales to boost sales 9. To build confidence about the product 10. To create buying impulse.Model 20: Sales letter to customers GHOSH BROTHERS LIMITED M.G. Raod, Madurai Tamil Nadu Dated …………………..M/s Vijay Kumar & SonsRam Nagar,Nagercoil 629 002Sirs,We are introducing a new line of watches. These are specially designed for young men and women who arejust starting out in life. We enclose a catalogue of the watches. I am sure that you will find them veryattractive.Our representative will call on you shortly to show you some samples and to give you promotional posters,stickers etc. kindly display them in your premises. We request you to place a trial order with us. Our pricesand terms are stated in the attached list.We are certain that a trial order will give you full satisfaction and we shall be glad to hear from you. BSPATIL 33
  • 34. Thanking you. Yours sincerelyEncl. as aboveModel 21: Sales letter introducing a new productWe are pleased to inform you that after a lot of research, we have started to manufacture “SUPER WHITE”washing powder, which we are introducing in the market. The SUPER WHITE washing powder washes alltypes of clothes. The dirt is removed without rubbing or scrubbing. At the same time the original colour isretained by washing the clothes with the SUPER WHITE washing powder. It does not harm the hands whilewashing as it is free from injurious chemicals. It simply requires soaking of clothes for an hour and rinsethoroughly, will show the result.We are launching an advertising campaign in the mass media. We are sending samples of SUPER WHITEwashing powder in 50 gram packets for free distribution to the customers to enable them to find the truthof our claim about the quality of this powder. Our aim is to serve our customers to the best of our abilityand with goods of proven quality.We look forward for a trial order for SUPER WHITE washing powder which, we are sure, will give yoursatisfaction.Thanking you. Yours sincerelyModel 22: Sales letter by a Retail Merchant BABY STORES East Car Street, Calicut 10th January, 2002Mr. Sharma,48, North Car Street,Calicut.Dear Sir,Wish you a Happy New Year.You may be glad that you have settled down in Calicut. I am sure that you will find the climate good,people are friendly and surroundings healthy. People, who settle down here, do not generally wish to moveout of this pleasant place.You may be glad note that M/s Baby Stores, situated in the heart of this city, in 50 years old and hasearned a good name by supplying all types of standard goods – provisions, stationery items toys etc. atreasonable prices. The products are deal in are of reputed firms backed by guarantee.The motto of the store is to serve people like you. You need not waste your valuable time in collectingthings from us. You please inform your needs over the phone or through a messenger. You get the neededitems on the same day as per order i.e., free door delivery is arranged by our firm.You can test our dealings. If you happen to visit this area, kindly pay us a visit. You can well avail yourselfof the best service and we are sure that you will always cherish your dealings with us. BSPATIL 34
  • 35. Thanking you,Yours sincerely(Manager)Model 23 : A Sales letter about steel tables K.K. STEEL FURNITURE K.P. Road Nagercoil, 629002 st 1 Aug. 2002The Principal,College of Commerce,Nagercoil 629 002Sir,Allow us to steal a few minutes of your valuable time.We deal in furniture items – specially tables. At present you can have a wide range of 20 different OFFICETABLES to suit budgets, storage needs, office layout, work areas etc. These tables are elegant, functionaland money saving and they fit well your office layout. Different jobs in an office call for different tablerequirements. The tables are designed to suit everyone – the Principal, Superintendent, Accountant,Cashier, Typist etc. The drawers of the tables can go where you want it – if you wish so. The table top,height of the table and drawers etc., are adjustable to suit everyone’s needs, irrespective of sizes, colours,shapes etc. A variety of tables are in ready stock and all are manufactured by us. We assure you that theyare of the best quality.An illustrated catalogue will be sent to you on request. All orders are executed at door delivery basis. Ourexpert staff will be happy to plan your office layout by saving space and money, free of cost.Remember us when you plan your OFFICE LAYOUT.Thanking youYours sincerely,For K.K. Steel Furniture(Sales Manager)Goodwill Letters BSPATIL 35
  • 36. Effective business letters are the “life blood” of modern business because they help to expand business ormarket from one corner of the world to another in the cheapest manner. Apart from winning customers,business letters promote goodwill too. Courteous letters will friends, enroll new customers, retain old onesand win similar other favours. The best way to achieve a customer’s goodwill is to offer best services. Abusinessman who overlooks a customer’s letter of complaint is digging his own grave. Prompt replyfosters pleasant relations.Every letter of complaint received by a trader is an opportunity to make friends with and a chance to winover a customer. It is senseless to think that complaints are a nuisance. A trader should welcomereasonable dissatisfaction with his goods or services. If a businessman desires to keep his customer’sbusiness, it is very important for him to reply as soon as he receives the complaint. He should satisfy thecustomer with a suitable reply if mistakes can be rectified without delay. In other cases, if time is requiredfor investigation, immediate acknowledgement of his letter of complaint is essential. One should have a constructive approach towards business. Goodwill letters are written, sometimes, whenthere is no need for doing so. A friendly approach undoubtedly wins customers. For egs. Imagine you areentering a shop. Immediately the shop – keeper or a salesman greets you, “Good morning, Sir.” Heenquires what you want and invites you to select your requirements. After making purchases, you pay thebill and the cashier tells you “Thank you, Sir”. When you approach the packing section, the packer gives thepacked items by saying. “Thank you Sir”, please come again.” You will be immensely pleased and you willmake it a habit to visit the shop again and again. Such pleasing manners cost the trader nothing but winhim friends.Note: “As a rule all business correspondence should aim at creating goodwill. But there are someletters-like letters of thanks or appreciation-that are written explicitly for builing goodwill Gratitude,sympathy, encouragement and appreciation all have goodwill at their base. Those of congratulation,welcome, condolence and show of interest also fall in the same category. The thing to be rememberedmost in the case of all kinds of goodwill letters is the importance of the element of sincerity, which mustcome out as a genuine feeling.”Following this manner “we write goodwill letters”. Please see the model 24.Model 24: Sales – cum – Goodwill letter J.K. PAPERS Chennai – 600 012 10th April 2002Mr. Krishnan,General Merchant,Chennai – 600 010Dear Sir,Our Sales Representative, Mr. Gopal, has informed us that you have not given any orders for the comingseason. This is perhaps due to the fact that there was some delay on our part in sending the ordered itemslast month. The delay happened because of workers strike which was beyond our control. I have alreadyinformed you of this and expressed my regret.Now it is the time to give orders for the coming season – educational institutions are going to reopen afterthe summer holidays. Paper cost is increasing day-by-day. As a friend I suggest you rush you demandwithout delay. Delay will result in paying higher prices. Timely action will help you to earn a good profitout of the season.The price-list is enclosed alongwith samples. Generally, we do not send sample unless asked for. You willobserve that the prices quoted are exceptionally low and we suggest you, in your interest, place orders asearly as possible. You are most welcometo visit our shop, whenever you can. If there is anything more, wecould to for you, please do not hesitate to inform us.We await your orders.Thank you. Yours sincerely, BSPATIL 36
  • 37. Encl : as above“Most business letters have two objectives : to promote a particular transaction and to build goodwill. Theycan be as brief and simple as you wish, but they should express what you feel in terms that are warm andsincere.”Model 25 : Approaching new customers JAY ENGINEERING COMPANY Chowringhee Road, Kolkata – 13 10th June, 2002M/s Raj Kamal & Sons,Flora Fountain,Mumbai – 400113 Electric FansDear Sirs, In 1970 we manufactured only 500 fans per month. In the year 1980 we manufactured more than10,000 fans every month, during the 90’s we were making over 30,000 fans every month, now 50,000fans every month. This is the finest example of determination, combined with latest techniques and know-how. Wehave still higher plans to make more fans and create new standards in quality and design.Ours is the biggest single unit fan factory in the world. “JAY” fans are exported to almost all the countriesin the world where fans are used.If you think of installing fans in your factory, we suggest you to buy JAY fans. Ours in quick service atreasonable price.Let JAY fans convince you how you can get good air. Yours truly, For JAY Engineering Cp., BSPATIL 37
  • 38. CHAPTER VII FOLLOW UP LETTERSEvery businessman tries to increase his business through various methods, which are suitable to him. If aman visits your shop (you being a businessman) try to give him maximum information about hisrequirements. If an item is not satisfactory to your customer, you will immediately switch on to thesubstitution. The inherent policy is to increase the sales.Mere advertisement for the sale of goods may not produce the desired result. Some other steps may benecessary to obtain real benefit. One of such steps is technically known as FOLLOW UP system. This is asystem in which approaches to prospective customers are made through letters. Follow-up letters areusually sent out in a standard form. Each successive letter is worded in a more intimate language. In orderto be successful, the letter should be pleasant reading, courteous, suggestive and full of confidence.Follow up letters are more or less circular in nature. Follow up letters mean, approaching the party again incontinuation of a previous trade letter or circular letter which contains sales promotion methods as themain theme. This is maintained when the customers are outsiders.After receiving enquiries, a businessman sends replier. If he does not find any reaction on his replies, hemay wait for 10 or 15 days, then he sends another letter of a re- approaching nature in order to attract theattention of the customers. If the customer is silent he once again writes follow up letters to him. Until anorder is received, he may go on. Follow up letter will be sent on the presumption of getting orders. If thebusinessman thinks, that a particular customer is not interested, he may not send unnecessary follow upletters.In mail order business, follow up letters are important, as there are no middlemen to approach the buyer.An index card can be kept in order to make the entries of enquiry and the replier sent. Customer’s replierare also entered in it. By seeing an index card, businessmen know to whom follow up letters are to be sent.Index card contains the details of the prospective buyers with date of letters sent and received.The enquiry letter is first replied in a general way. If it does not draw the attention of the customer, asecond letter follows with more information. Again, if he does not respond, a third one is written with afresh argument. This may be done after a gap of 10 or 15 days.Follow up letters are printed or cyclostyled. The addresses are filled in by the typist and signature is eithercyclostyled or handwritten. The letter must be very courteous, pleasant in nature and must express fullconfidence. An order form is to be attached to every letter. Hints for such letters 1. Draft the letter in such a way as to suit the needs, desires and the way of thinking of the particular class of customers. 2. Make an appeal by telling him how the product benefits him. 3. Highlight the plus points – economy, durability, low price, pride in possession, satisfactory performance etc. 4. Convince the reader by giving evidence. 5. It is not a letter of circular type. Use new arguments. Close the letter by telling exactly what to do and how to do it so that action becomes easy.Model 26 : First Follow up letter JOHNSON RADIO CO. LTD. 28 Dadabhai Road, Mumbai – 400 001 10th June, 2002Mr. Roshanlal Sharms,1273, Civil Line,Mumbai – 400 023Dear Sir, BSPATIL 38
  • 39. A week back, we had the pleasure of demonstrating the system of Johnson Battery Eliminator suitable totransistor radios. The complete literature of Johnson Battery Eliminator is enclosed. Now by possessingtransistor radios you need not purchase batteries, for the batteries can be replaced by the Johnson BatteryEliminator. The system is very cheap in comparison with the cost of batteries.As we have heard nothing from you, we are anxious to know, your interest on the benefits of the BatteryEliminator. If you want to clear any doubts, please do not hesitate to write us.It may interest you to know that the Battery Eliminator is not only cheap but is also durable. The JohnsonBattery Eliminator is supplied with guarantee for one year.Just a glance at our Jonhson Battery Eliminator will convince you how smart and portable it is. Yours sincerely, For Johnson Raido Co. Ltd.Model 27 : Second Follow Up letter JOHNSON RADIO CO. LTD. 28, Dadabhai Raod, Mumbai – 400 001 30th June, 2002Mr. Roshanlal Sharma,1273, Civil LineMumbai – 400 023Dear Sir,We take the liberty to approach you once again. The enclosed illustrated price list will give you an idea ofJohnson Battery Eliminator. We are persistent because we are sure of serving you and enabling you to avoidany heavy expenditure.We undoubtedly hope that the enclosed booklet will give you a clear understanding. Since we have heardnothing from you so far, we write to you again thinking that you may like to know more details. We shallbe glad to clear all the doubts and queries, if you will let us know of the same. The cost of the BatteryEliminator is very low and every Battery Eliminator is supplied with a guarantee card of one year from thedate of purchase.When you posses a Johnson Battery Eliminator you will feel proud of it.Then there is no reason as to why you should not make use of the advantage of this grand offer.We shall appreciate an early reply Yours sincerely For Johnson Radio Co. Ltd.Encl. : as aboveModel 28 : Third follow up letter (Last follow-up letter) JOHNSON RAIDO CO. LTD. 28, Dadabhai Road Mumbai – 400 001 20th July ……. BSPATIL 39
  • 40. Mr. Roshanlal Sharma,1273, Civil Line,Mumbai – 400 023Dear SirIt is understood that our previous letters relating to the advantages of Johnson Battery Eliminator did notdraw your attention. Once again, we bring a few more facts to your notice. A few copies of letters of notable customers addressed to us are enclosed and these letters, will show youas to how Johnson Battery Eliminator is preferred by the public. Moreover, there is a great demand, all overIndia, for Johnson Battery Eliminators.The Johnson Battery Eliminators are manufactured at a low cost, because of the increased sales of JohnsonBattery Eliminators. The Johnson Battery Eliminator costs Rs. 100 only. There who live in Mumbai can getthe Johnson Battery Eliminator from any of our authorized dealers on an advance of Rs. 20.00 as the firstinstallment. If you are not satisfied, please approach the dealer and get back your money in full.Now, it is your choice to enjoy the Johnson Battery Eliminator. Herewith is a proforma to be filled in by youand handed over to the local dealer alongwith the advance. If you do so, he will be glad to welcome you inoffering the grand advantage. Yours sincerely, For Johnson Radio Co. Ltd.Model 29 : Last Follow up Letter JOSHI AND SONS (Manufacturer’s of Pump Sets) Kalbadevi Road, Mumbai-400 065 12 May, 2002Mr. Ramlal,Civil Line,Mumbai – 400 010Dear Sirs,It appears that our previous letters have failed to convince you of the advantages of the working of pumpsets. We bring a few more facts to your notice.The enclosed copies of letters addressed by some of our valued customers show the usefulness andtrustworthiness of our pump sets. Among these are the Government of few States which have used them intheir model farms. The tremendous popularity of the sets must surely be due to their merits.An important result of the increased sale of the pump sets is that it has enable us to reduce its price by10%.To suit the convenience of the buyers, we have prepared an another scheme of Hire Purchase, Under thisscheme the price of the pump set is payable in installments, spread over a period of 12 months. Thusyou either buy the pump set for cash or obtain it under Hire Purchase Scheme.We undertake to install the pump set at your farm at our expense on receipt of the initial payment. In caseyou decide to take advantage of our Hire Purchase Scheme, please fill in the enclosed form and sent it tous alongwith initial payment. On receipt of the form, we will immediately proceed to install the pump set at BSPATIL 40
  • 41. your farm.We appreciate an early reply form you.Thanking you. Yours sincerelyEncl : As above BSPATIL 41
  • 42. Chapter VIII TRADE ENQUIRIESMost letters, which are written for commercial purposes are trade letters. Every trade letter is written witha certain aim. They include letters of enquiries and replies, letters of order confirming order, letters ofdispatch, letters of settlements, etc.We can see many tyupes of advertisements in newspapers. Sometimes the advertisement fails to give fullinformation of a particular type of goods, to the buyer or customer. In this case, the correspondencethread, “Enquiry” starts from the buyer. This will naturally be replied. When the response is satisfactory, hesends an order and the seller will executive the order. accounts are settled, unless there be some cause forcomplaint. If there is any complaint, they are adjusted. Finally payments are made and the wholecorrespondence or transaction comes to an end.The basic stages of correspondence between a buyer and a seller are: (a) Letter of inquiry (b) Letter of response (c) Letter of order (d) Letter of execution of order (e) Letter of complaint, if any (f) Letter of adjustment (g) Letter of settlement of accountsIn trade enquiries letters are usually written by a buyer to enquire the price, quality, terms of trade, etc.This type of letters may be based either on the supplier’s advertisement or at the instance of the buyerhimself. In writing a letter of enquiry the following general points should be remembered. 1. Description of goods If the buyer is definite about his needs, he should describe in detail. By writing detailed description, the chance of getting undesirable goods can be avoided. If enquiry is made on the basis of catalogue number assigned to each goods may be given in lieu of the details. However, a clear description must be found in a letter of enquiry, so as to avoid unnecessary further correspondence. 2. Price, time and place of delivery The buyer should know the prices. If not found in the catalogue, he asks for it in his letter of enquiry, as well as the time taken for delivery of goods, the place of delivery, etc. The period of delivery time is an important element. The gods may be supplied at F.O.R. or Ex.go down or C.I.F. value. in order to eliminate doubts regarding the quality of goods, sample may be asked for. 3. Terms of payment If a new purchaser aims at buying goods from a firm with which he has had no previous transactions, he should ask whether gods wil be supplied on cash or credit. If it is on credit, the buyer should give references to enable the seller to enquire the status of the buyer. It is also advisable to state the probable quantity that may be purchased. 4. Other charges Generally insurance, commission, discount, rebate etc., are found in terms of trade. It is seen that where a large quantity of goods is purchased, certain facilities are given by a seller to the buyer viz. discount or commission. Any suggestions, if needed, can be forwarded and of course the seller will comply with it. Details regarding packing and forwarding of goods can be had from the seller. The shortest route to the destination from the seller’s place may also be mentioned. A few examples of opening sentences and closing sentences are given below: BSPATIL 42
  • 43. Opening sentences (a) “As we are in urgent need of your products ………..” (b) “We shall be glad to receive detailed information of your ……” (c) “I shall be grateful to you for ……..” (d) “Please quote us your lowest prices for …..” (e) “Your name has been suggested to us by M/s………” (f) “We are interested in your products and therefore please, let us know the details of…..” (g) “Will you please tell us the terms and conditions………………” (h) “Your firm has been recommended to us by Mr. Ganesh C.A. who happen to be our regular customer.” (i) “We are interested in buying fancy table tops being manufactured by you.”Closing Sentence (a) If your terms and conditions prove satisfactory, we shall place our requirements with you. (b) As we are able to handle large quantities, we trust that you will make an effort to quote competitive prices. (c) To facilitate further orders please quote your lowest prices. (d) On hearing from you, we shall place a bulk order with you. (e) We hope to place a large order if your terms of the business are found reasonable. (f) We trust you will offer us special concessions, as we are in a position to place large orders with you. (g) “If terms and conditions are favourable, we would be pleased to send our first order immediately.” (h) “Since we plan to give you regular business, we are sure, you will quote favourable terms.”. How to write a letter of enquiry 1. It must contain a clear description of the goods needed. 2. If many questions are to be asked, do not combine into one sentence but write them in separate sentences, if possible, serially, which serve as reference guide. 3. Its language must be courteous. 4. Give whatever business information is necessary 5. Probable quantity to be ordered may be mentioned 6. Ask the time taken for delivery of goods 7. If confidential, state the fact 8. Suggestions, if any can be given 9. Ask for the details of terms of payment 10. Ask for samples or demonstration, if needed.Model 30 : Enquiry letterTel. 9758Gram : HEMCHAND HEMCHAND & SONS BSPATIL 43
  • 44. (Dealers in Electrical Goods) Wright Town, Jabalpur (M.P.) Dated ……………….Messrs Sharma Stores,BhopalDear Sirs,Your name as manufacturers of handy electrical machines has been mentioned to us by Sri W.N. Chopra, afamous Doctor in this city. As we are dealing in electrical goods, we have many buyers to purchase thehandy electrical machine. Therefore, please supply your quotation alongwith literature. Please also clearlymention the time you may take to effect the delivery of goods.Thanking you. Yours sincerely For Hemchand & Sons R.K. JainModel 31 : Enquiry letterTel. 4246Gram : CARTONCARTON STATIONERY CENTREPost Office Road,Madurai (S.I.) – 625002 5th April, 2002Messers, Morton & Sons,Virudhunagar.Dear Sirs,We are interested in hand-purses, advertised in the Indian Express of 2nd April, 2002. We are consideringto order a few dozen on a trial basis. The advertisement in the daily paper does not give sufficientinformation. Therefore, please send us the details as to the quality, durability.Thanking you. Your sincerely For Carton Stationery Centre ManagerModel 32 : Enquiry letterTel. 5647Gram : JOPHNCO JOHN & COMPANY (Exporters of clothes) Kali Temple, Main Road. Madurai – 625 011 BSPATIL 44
  • 45. 1st April, 2002Messrs. Burn & Company Ltd.,Temple Street,Chennai – 600 015 RE : Weaving plantDear Sirs,We are planning to expand our weaving plant, by adding the latest and most up-to-date knitting machine.We, therefore, request you to send the catalogue and price list which includes C.I.F. and F.O.R. rates.Kindly intimate the period for delivery of each item.Please also let me know whether free service after sale is effected and if so the period may be let known.Yours sincerely,For Johnson Co.Sales managerModel 33 : Ramchand & Company;Middle Street,Mumbai – 400 001Dear Sirs,It is our intention to establish a retail agency of your Photo Album,, in this town. We shall be grateful toyou, if you will please send the details of your products along with the terms and conditions of trade.If we are satisfied with the trade conditions, we shall order immediately, because there is a heavy demandin this town.Thanking youYours sincerely,For Premchand & Sons.……………………………Model 34 : Enquiry for supply of uniforms COMMERCIAL BANK 78, Town Hall Road, Chennai – 600020 18th August, 2002M/s Ramlal and Sons,Cloth Merchant,Chennai 600098Dear SirsWe need a large number of uniforms for our peons and bearers. White cotton half-shirts and khakitrousers of standard size are required. We shall be glad to receive your lowest quotation. We need 200 BSPATIL 45
  • 46. sets of white cotton half-shirts and khaki trousers. If your quotation is found reasonable, we shall placeorder immediately. Our terms are cash. An early reply is requested.Thanking you,Yours sincerely,For Commercial BankModel 35 : Enquiry for bulk supply GHOSH AND COMPANY 87, Big Bazar, Chennai – 6000098 20th August 2002M/s Kumari Industries Ltd.,M.G. Road,Chennai – 600010Dear Sirs,I shall be glad if you will send me your latest price list of fans of all types. I do an exiensive retail trade infans and shall order extensively if your prices admit of a reasonable margin of profit. As we are in aposition to handle large quantities, we trust that you will make an effort to give a really competitivequotation. I shall compare your prices and the advantages you offer with those of other makers and ifsatisfied, shall place bulk orders.Thanking you,Yours sincerely,For Ghosh & Co.(Manager)Model 36 : Enquiry for pricesTel.: 578 B. GUPTA & CO. LTD. (Dealers in Stationary) Mount Road, Kolkata – 700012 8th June ………..Messers. P.N. Latha & Co.West Street,Mumbai – 400120Dear Sirs,Please quote as early as possible your lowest prices for plastic combs of all sizes, in different colours.If your prices suti us, we shall soon place an order on cash for serval grosses of each item.Thanking you. Yours sincerely BSPATIL 46
  • 47. For Gupta & Co.Model 37 : Enquiries for pricesTel. : MULITel : 4657 MULI & COMPANY (Dealers in Cloths) Delhi Road, Agra – 282001 30th March 2002Mesers. Dasgupta & Sons.West Street,Mumbai – 400115Dear Sirs,We need bathing towels in the usual sizes in suitable colours and in different qualities to meet the presentdemand of our customers. Our monthly requirements may range from 4 to 5 grosses. So please send usyour F.O.R. quotation.Please offer us your very best terms so that we may be encouraged to place our future orders with you. onhearing from you, if we find your terms satisfactory, we shall give orders and other particulars.Thanking you, Yours sincerely, For Muli & Co. …………………Model 38 : Reply to an enquiryB.K. Manufacturers 2197, West Street, Mumbai – 400010 24th May, 2002Messers, Babulal & Co.,Big Bazar,Chennai – 600094Sirs,In reply to your letter, we have pleasure in enclosing a copy of our revised price-list. You may learn from itthat owing to further economies in manufacturing costs made possible particularly due to the introductionof new machinery, we are able to announce a reduction in prices which will have an immediate effect. BSPATIL 47
  • 48. We believe that these reduced prices will serve to stimulate business with you in the forthcoming season.Our representative, Mr., K.P. John will be pleased to visit you with samples of our recent products.Kindly please an order with him and be profited. Yours sincerely, For B.K. ManufacturersEncl : as aboveModel 39 : Enquiry by an Author B.K. Ramu, B.E. 262, C.M.S. Compound North Civil Line, Jabalpur th 28 May, 2002The National PrintersDelhi Road,AllahabadDear Sirs, Re: Publication of a bookI have just completed the manuscript of a book on “RADIO MACHANISM” in English and Hindi. This bookwill be very useful not only to laymen but also to the students and radio business people. My book hasbeen seen by two eminent professors and as such, the correctness of the information stands guaranteed.The book is very simple and it can be followed every by a layman.I shall forward the manuscript to you as soon as I hear from you. I do not bother much about the termsand conditions that you prescribe. You can have your own terms and conditions for publication.Expecting your early reply.Yours sincerelyB.K. Ramu.Model 40 : Enquiry for bulk supply RAM CONSTRUCTIONS (Dealers in construction materials) Cape Road, Nagercoil 629 001 Dated 11th May, 2002The Steel House,Park Street,Madurai 625 001 BSPATIL 48
  • 49. Dear Sirs,We read with interest your advertisement in the Indian Express Daily of 10th May and are impressed by thedescriptions of steel screws and fittings made by you.We are leading construction contractors and dealers in construction materials in this area. The demand forsteel fittings is steadily increasing in this area and we have a large number of enquiries.Kindly send us your catalogue and price list for wholesale purchase. Our annual requirements in steelfittings may be about 5 lakhs. We would like to place regular orders with you. Hence, please quote yourmost favourable prices and terms.Thanking you. Yours sincerelyModel 41 : Enquiry for Printing KITAB DEALERS LIMITED (Book sellers) Main Road, Salem – 1 th 19 April, 2002The Indian Printers,Printing House,Climbatore 641009Sirs,Please let us know your lowest quotation for printing 5,000 copies of the enclosed manuscript, ModernTheory of commerce. The book must be ready by the end of May 19, 2002. Superior ‘A’ quality paper andbinding in stiff board and cloth back are suggested. Half the charges will be paid to you soon aftercomposing is over. Balance amount of the bill will be cleared when the books are actually sent our.We shall be glad to receive an early reply. Yours sincerely, For Kitab Dealers Ltd. BSPATIL 49
  • 50. Chapter IX “OFFERS” AND “QUOTATIONS”Both the terms “Offers” and “Quotations” convey the same meaning, but there is a slight differencebetween the two. Quotation is supplied in reply to an inquiry. An offer can be made to a large number ofcustomers in the form of general terms and in the form of printed circular letter. A specific offer to aparticular article in question is sent to the needed person only. Thus we can see that a general way of anoffer is akin to a circular, and a specific offer is equivalent to a quotation.An offer may be valid only for a specific time. An order sent on the basis of an offer will be accepted atthe specified price and conditions and within the specified time only, because prices and availability ofgoods may be changed due to many reasons – market fluctuations, scarcity of goods increase in duty, etc.Letters of offer are sent to customers, with a view to stock the product regularly. The offer letters mayinclude the comparison with other similar products, and retailers will be able to know the advantages of aparticular product. Favourable prices will of course stimulate quick sales.Offers are not only sent through letters, but even made known to the buyers through advertisements innewspapers. It the manufacturer will advertise his products, he will meet all the expenses. If in any localnewspapers such an advertisement is made along with the name of the retailer or agent, the expenses forsuch an advertisement may be shared by the retailer and agent.Some customers may be regular in sending orders in order to get interested articles. In case a customerceases to order, the businessman should enquire the reason for the same and should be ready to satisfyhim. Special care and attention should be taken to get back his interest in his product. He can be attractedthrough discounts and concessions.Quotation is sent against an enquiry. It contains all the information of the product. Every efficientbusinessman should see that an enquiry letter carries him an order when it is responded.An order form followed by an offer will certainly increase the sale of goods. Terms used in offers and quotations F.O.B. = (Free On Board): The goods will be put on board the ship at the seller’s expense, freight being payable by the buyer. Ex-warehouse: It represents price of goods at seller’s warehouse and buyer pays for conveyance from seller’s warehouse point. Loco: The price of goods at seller’s warehouse or factory. Guarantee: An undertaking given by a manufacturer regarding the quality of a product for a specified period. F.O.R. (Free on Rail): The charges of loading the goods into wagons are payable by the seller and are included in the quotation. Cash Discount: A deduction from the price charges, if payment is made before a certain date: C.W.O. (Cash With Order): Cash must be sent when the order is placed. C.O.D. (Cash On Delivery): Buyer pays cash on delivery of goods. 3% 10 days: This means the 3% discount of the price is allowed if the payment is made within 10 days. Carriage Paid: Seller will pay transport charges. C.I.F. (Cost Insurance Freight) These charges are included in the quotation. Trade Discount: This may take the form of a rebate, on the price in a wholesaler’s catalogue, allowed to retailer. Gross Weight: This is total weight of the goods and the container. BSPATIL 50
  • 51. Carriage Paid: The seller is responsible for delivering the goods at his cost to the nearest station to the buyer. How to answer a letter of Enquiry 1. Thank the enquirer for the enquiry. 2. Reply should be sent promptly. 3. Write the reply in clear language. 4. Additional information, not asked, can be given with advantage and to build goodwill. 5. State the period for which the quotation is valid. 6. Give an undertaking as to the quality of goods demanded. 7. A reply of refusal should start with an appreciation of the interest shown by the enquirer. Reason for refusal may be explained. 8. Of the goods asked for the our of stock or not manufactured, a good trader will not bluntly turn the customer away but offer his a substitute.Terms used in offers and quotationsAt Station This means that the seller will make free delivery to the Railway station nearest to the buyer : butall the costs of carriage by railway will be met by the buyer.F.O.B. (Free on Board) A price quoted “f.o.b.” means that the goods will be put on board the ship at theseller’s expense, freight being payable by the buyer.Ex-warehouse This relates to a quotation of the price, or a commodity excluding all delivery charges: the price, infact, is to be paid when the purchaser collects the goods himself from the warehouse, where they arestored at the time.Guarantee An undertaking given by a manufacturer regarding the quality of a product for a specified period.Cash discount A deduction from the price charged, if payment is made before a certain date: inducement to paypromptly, offered especially by wholesalers to retailers.Trade discount This may take the form of a rebate, on the price in a wholesaler’s catalogue, allowed to retailer.Cash on delivery A service provided by the post-office to assist mail-order business, the purchaser paying thepostman who delivers the goods. At the time of delivery of the goods, cash is paid immediately.3% 10 days This means the 3% discount of the price is allowed if the payment is made within 10 days.F.O.R. Free on Rail: The charges of loading the goods into wagons are payable by the seller and areincluded in the quotation.Gross Weight This is total weight of the goods and the container.Loco BSPATIL 51
  • 52. The price of goods at seller’s warehouse or factory.Carriage Paid The seller is responsible for delivering the goods at his cost to the nearest station of the buyer.Carriage Forward The cost of getting the goods (transporting expenses) is paid by the buyers.C.I.F. Cost insurance freight : these prices are included in these quotations.C.W.O. Cash with order : It is a type of advance. Cash must be sent when the order is placed and not whenthe goods are delivered.Model 42: Reply to an Enquiry Tel : 3874 Gram : Singer SINGER COMPANY OF AMERICA Palace Road, New York, 15th Aug., 2002The Hindustan Machine Tools Ltd.Bangalore – 560 001Sirs, We thank you for your enquiry dated the 14th of July, 2002. We have forwarded to you separately acomplete set of literature and price lists covering all models manufactured by our company. Our usual terms are 25% of the price is to be paid along with order and the balance to be paidwithin three months. We are represented by Singer Sewing Machine Co. Bombay. If you require any further information,you may contact our branch or communicate directly with us. Yours truly, For Singer Co. of America ………………………………Model 43 : Reply to an enquiry about an article which the firm does not make BANNERJEE BROTHERS & COMPANY (Dealers in furniture & household) Mandir Street, Kolkata 19th Sept. 2002M/s. Das & Co.,Patna.Sirs, BSPATIL 52
  • 53. We have your enquiry letter of 13th Sept; but target to inform you that we have only steel almirahsin our stocks. However, we have handed over your letter to M/s. Mukherjee & Sons, who deal in furnitureand you will soon hear from them. As we are dealers in almirahs, you will be interested in our products and so we take thisopportunity to send you a copy of our latest catalogue. We particularly draw your attention to the specialterms to big purchases on page number 10 of our catalogue. We also enclose an order form for your convenience. Yours Sincerely, For Banarjee Bros. & Co.Model 44 : Offer to retailer (quotation) SUNTALSONS & COMPANY (Dealers in pump sets) 4732/14, Daryagunj, New Delhi – 110002 10th June, 2002M/s. Jain & Co.Chruch Road,Mumbai – 400001Dear Sirs, PUMP SETS We thank you for your courtesy extended to our representative, when he called on you recently anddemonstrated the working of our pump set. We take pleasure in confirming our quotations as follows: Prize: Double capacity super size pump 3 HP @ Rs. 6,500/- Single: Capacity super size. 1.5 HP @ Rs. 2800/- per set. Tools: @ Rs. 200 per set. Sales Tax: State or central tax. As applicable will be charged. Guarantee: Both the pump setsare guaranteed for a period of two years. During this period oiling, repairing, replacement, etc., will bedone free of any charges. after the guarantee period is over, we charge Ras. 150/- per year for servicing. Payment : Bill will be paid within two months. This offer will remain open for three months from the date of this quotation. More details, if any,can be had on calling us. We are sure that both the pump sets will serve your requirements in every way and we await yourvaluable order. Thanking you. Yours sincerely, For Suntalsons & Co. BSPATIL 53
  • 54. Model 45: An offer to a retailer Gram : Bose KOLKATA TOOTH PASTE CO. Kolkata – 700 012 15th Sept., 2002M/s. Jose & Cp.Palace Road,New Delhi – 110007.Dear Sirs,We take pleasure in sending you today a sample of our newly manufactured item Quick action tooth pastewhich we have already placed in the market. This product is the result of a long and careful research andwe are sure that it will supply a long-felt need.From the booklet enclosed, you will find that our tooth paste possesses many special merits. We havereceived many enquiries from different parts of the country including your district. The public haveappreciated the merits of the product and we are confident that this tooth paste will have a quick sellingline.We now ask you to consider carefully this offer of a unique product at a generous discount of 20%.Thanking you, Your sincerely, For Kolkata Tooth Paste Co.Encl : Booklet.Model 46 : Follow up COOKING APPLIANCES LIMITED Park Area, Sardar Street, Jabalpur M.P. 10th June, 2002The General CompanySardar Road,Mumbai – 400121.Dear Sirs, Our record shows that we have not received any order from you the last three months. We have hadno complaint about the goods supplied to you. we hope that you have had complete satisfaction. BSPATIL 54
  • 55. It is possible that you may have felt some dissatisfaction of which we have not been informed. If it is so weshall be glad to have an opportunity to look into the matter, because we always try to satisfy ourcustomers by supplying standard goods. Several lines of new products have been introduced in the market through our research department.A new list, enclosed, will show you the details of the goods and it offers a real bargain. Please have a lookat it.We sincerely hope that we shall soon have the pleasure of getting your orders and we assure you that weshall give our utmost care to execute them. Yours sincerely For Cooking Appliances Ltd. ………………………………... Sales ManagerEncl : as aboveModel 47 : Follow up letter to an old customerMALHOTRA TRADERSAMINABAD,Agra – 28200115th May, 2002M/s. Ramlal & SonsHome Guard Road,Agra – 282010.Dear Sirs, White turning our past records, we find that you have not favoured us with orders after February.You have been our valued customer for the last three years and years and this silence of yours is ratherunusual. Kindly let us know dissatisfaction, if any, and we shall be pleased to go into it. We did not receiveany complaint from you so for. We have recently added new items to our existing range of products. We specially wish to bring theitems to your notice. The new items are in great demand in your city. The competitors are doing goodbusiness, in your area. We are sending our latest price list alongwith catalogue for your information. We are confident that you would like to place orders at an early date. Assuring you of our best services. Yours sincerely. BSPATIL 55
  • 56. CHAPTER X TRADE ORDERAfter receiving the quotations, if the offer is favourable, the buyer may accept it by sending a letter ofacceptance. It must be understood that by sending the acceptance letter a contract arises between theseller and the buyer. If no offer or quotation is received, the question of letter of acceptance does not arise.Persons can order even without calling quotations from sellers. By using a Proforma, it is easy to embodythe requirements. Detailed columns can be seen in a blank order-form. In an order form we can find, S.No.,name of the articles, price quantity required, total price, remarks etc. Before placing an order, we shouldclear all our doubts regarding the goods.A good business order-letter has the following important features. Let us discuss them one by one. 1. Specification of Goods The order-letter should not create any doubt, in the mind of the seller. If there arises a doubt further communications will be necessary to clear the doubt. Therefore, to avoid al these, the order-letter should contain exact information of goods-rate, size, colour, kind etc. When ordering the goods, reference number of catalogue or letter should be mentioned. If there is any identifying number for each item, it should also be given. If all these pieces of information are in the order-letter, the seller will be at case to perform his duty. 2. Mode of paymentA price-list is also sent to the buyer by the seller. The buyer may bargain for some reduction in prices. Ifso, the price for the item should be settled first. When the price-list is strictly adhered to, the seller’s priceis written. If a buyer mentions the price in his order, the seller cannot exceed the limit withoutcommunicating to him. It will also be essential to mention whether he is willing to purchase on cash orcredit basis. The way of making the payment should be mentioned-by cheque, bank draft, etc. 3. Delivery periodTime of delivery is an essential matter. Therefore just as in the case of quotations, in the order also thebuyer should give the time limit, within which period the goods must be sent to him. It is important to notthat if the buyer is not giving the date, he cannot blame the seller for any delay that may happen indispatching the goods. 4. Mode of carriageIf the transport facilities are not easily available and if there is no arrangement for sending the goods, thebuyer informs the seller to send the consignment through parcel post, goods train, passenger train etc., -through the easiest and most convenient route. If all these details are mentioned in the order, the sellerhas to comply. He must obey the buyer in every request. If he fails, he will be responsible for all damages.The buyer should also give instructions regarding insurance, packing, etc., charged on the goods.Model 48: Order MARRISON SALES DEPOT (Dealers in garments) 301 Chamber Road, Nattingham, 31st August, 2002The Sales Manager,Sales Corporation,Millwall,London E. 14Dear Sir, Thank you for you quotation of 5th August, 2002 and for supply of samples. The terms andconditions given in your letter are accepted. So please supply the following items through S.V. Transport BSPATIL 56
  • 57. Company. 1. Table cloth “A” @ Rs. 100/- each One gross 2. Napkins “S” @ Rs. 15/-each Two Grosses 3. Big Towels “X” @ Rs. 78/- each One gross 4. Small Towels “A” @ Rs. 38/- each One gross The payment will be made only after the receipt of the goods in good condition and as perspecifications.Thaking you. Yours faithfully, For Marrison Sales Depot. K.I.John Hints for drafting an order 1. Correct particulars of goods and their quantity, size, colour etc. 2. Mention the mode of transport. 3. The address to which goods are to be deliverd. 4. The date of delivery 5. Prices, discounts etc. (quoted by the seller) 6. Manner of payment. 7. Instructions for packing, insurance etc.Model 49 : Confirmation Tel. : 3873 Gram: Rays RAY & SONSNo………………. Kalai Street, Contonment, Mumbai – 400010 1st Sept., 2002M/s. Raju & CompanyHorby Street,Chennai – 600110Dear Sirs, We thank you for your letter alongwith the quotation dated 25th Aug. 2002. Since our customers arepressing for the hair – oil of your firm, please dispatch immediately 500 bottels of medium size hair – oilby passenger train. You may please meet all the expenses of sending them and include in the bill. Yourterms and conditions given in your letter are acceptable to us.Please confirm this order and intimate to us as to when you will dispatch the hair-oil.Thanking you Yours sincerely, For Ray & Sons ………………….. BSPATIL 57
  • 58. Model 50 : Order NATIONAL TRADERS Coorg Street, Assam, 31st Aug., 2002M/s. Jordan Mart.Park Street,Mumbai – 400011Dear Sirs, We have carefully tested the samples you sent along with the letter of 20th Aug., 2002 and arepleased to convey that we have been impressed favourably. Therefore, we wish to purchase a hundrednumber of Dunlop pillows of gray colour and medium size @ Rs. 50 each. We understand from your letter that payment should be made within 45 days. We reserve the rightto rejecting the consignment if it does not correspond with the sample. Let us put the pillows for sale on a trial basis. Yours faithfully, For National Traders. …………………………Model 51 : Order confirmationTelephone : 23457Gram : CoalINDIAN COAL LIMITEDStoking Park,Kolkata – 70001631st Aug., 2002The Yarn Traders,R.S. Steel,Kolkata – 700010Dear Sirs, We thank you very much for your order dated 25th Aug., 2002 but regret to inform you that therequired items are not in ready stock with us. Hence, we are unable to execute your order immediately. We, therefore, inform you that if you can wait for a month, we shall be able to send your ordereditems. If so, please confirm us by return of post.Awaiting a favourable reply. Yours truly, For Indian Coal Ltd. BSPATIL 58
  • 59. …………………….. (Depot Manager)Model 52 : Order for goods STATIONERY CENTRE Commercial Road, Agra – 282 003 23 March, 2002Messrs. Harris MartDelhi Road,Allahabad.Dear Sirs,I shall be glad if you will please send the following list of stationary by passenger train as early as possible. Qty. Required 1. Indian ball-pens ‘B’ type @ Rs. 4.00 500 Nos. 2. Indian ball-pens ‘C’ type @ Rs. 3.00 500 Nos. 3. Lead-pencils of Super @ Re. 0.50 1000 Nos. 4. Copying-pencils of medium ‘B’ @ Re. 0.50 1000 Nos. 5. Copying-pencils of super ‘A’ @ Re. 0.70 1000 Nos.All the items should be of the best quality as they are required for sale to students and office staff. Pleasepack them very carefully in a box and send them immediately. The amount of the invoice may be collectedby negotiating the Railway Receipt through the Punjab Bank of India.Thanking you Your Sincerely For Stationery CentreModel 53 : Placing a trial orderPREMCHAND STORESPrem Mahal,Madurai – 6250089th June 2002M/s. Bright & SonsSalem.Dear Sirs,I find your quotation for baniyans quite reasonable and wish to place a trial order for 6 dozen of 32” size(Model No. 357). If I find demand for the type, I shall be placing regular orders with you. the present orderis F.O.R. price at Madurai. It is a trial order and, therefore, request you for an additional discount of 5%. BSPATIL 59
  • 60. On receipt of the goods here, in good condition, the payment will be made against the bill within twoweeks.Thanking you. Yours Sincerely For Premchand Stores …………………………. BSPATIL 60
  • 61. Chapter XI STATUS ENQUIRYIn the course of business, many problems may arise. The main problem is that of supplying goods oncredit basis. Goods may be sold for cash or credit. If the sale takes place against cash, there will be noproblem. But in business, often we have to give on credit. Moreover, a business cannot prosper withoutgranting credits. While granting credit or loan, we must try to minimize the risk involved in such atransaction. The very same idea we study under ‘status enquiry’.Before granting credit to any firm or person, the seller should by to know the purchaser’s financial positionand credit-worthiness. If a firm receives an order to be executed on credit basis, it must supply the goodsonly after confirming the soundness of the parties. Such information can be had from friends, otherwell-established firms, bankers, etc. If the reply is unfavourable, goods must not be supplied, becausebusinessmen must avoid risks as far as possible.A new buyer, who wishes to get things on credit basis, can be asked to give two references. The unknownparty might be a wealthy party in respect of business. Therefore, it is essential that proper care should betaken, when asking for the names of references, and it should not create bad feelings in a buyer. If such aletter wounds his feelings, the seller will lose his patronage. Business people must always aim atpromoting their sales.When writing an enquiry of status, the following points may be remembered: 1. A reference of the buyer is mentioned in the letter. 2. A clear idea is to be given as to why the letter is written. 3. The question concerning the credit worthiness of the buyer, has to be raised. 4. Assurances are necessary to safeguard the privacy of dealings. 5. When chances arise one must be ready to return the favour.Friends of the businessman may reply to such enquiries directly. In the case of bank we can see thatbankers will supply such information to our bankers only. So it is better to deal status enquiry lettersthrough our banks.When a status enquiry letter is received, a reply is sent and the nature of the reply depends upon theknowledge of the reference. Sometimes, the reply may be favourable, sometimes it may be unfavourable,sometimes it will neither be favourable not unfavourable because he will not be in a position to sayanything about the party. Hence the replies may be of three kinds. 1. Favourable replies 2. Unfavourable replies. 3. Non-committal repliesVague enquiries can produce only vague information. Therefore, the trader should be very precise in hisenquiries. Further, the following points are worthy to be noted: 1. State the circumstances in which the letter is written. 2. Letter written to a referee requires more tact, politeness and caution, because the addressee is not bound to answer your queries. 3. Give the name and address of the firm about whom you are enquiring. 4. Mention that you have been asked to refer to the addressee. 5. Mention in the letter the amount of credit asked and the period of credit. 6. Make a request for credit information about the maximum amount and period that can be granted. 7. Assure that the information given will be considered strictly confidential. 8. It is suggested to avoid mentioning in the reply the name of the firm about whom the BSPATIL 61
  • 62. adverse opinion is given. Better, write “the firm you mention” or “the firm in question” etc. 9. Assure to extend cooperation and readiness to render similar services to the referee if needed. 10. Enclose a self-addressed and stamped cover.Credit will depend on what is popularly known as the 3C’s, which are (1) Capital (2) Capacity and (3)Character.Model 54: Letter asking for reference DESAI BROTHERS Mumbai-400 013 10th May, 2002Mr. Ramlal Seth,Bank Road,Madurai- 625 001Dear Sir, It is a pleasure to receive your order of 3rd May for plastic toys. We shall gladly open an account for you as soon as you furnish us with two trade referencesalongwith your bank reference. This will enable us to complete the formalities necessary to establish yourfirm’s credit. Getting trade and bank references is a general policy. We always request our new customersto send us such information before we open account in their names. Will you please write to us by return of post? We have recorded your order for execution. We arepleased to have the opportunity of adding your name to our list of credit accounts. Hope this opportunitywill be beginning of a long and happy association with you.Thanking you. Yours sincerelyModel 55: Letter giving reference RAMLAL SETH (Dealers in toys) Bank Raod, Madurai-623001 20th May, 2002M/s. Desai Brothers,Mumbai-400 040Sirs,Thank you for your letter of 10th May. I feel pleasure in giving the names of the following business housesas references: 1. Modern Stores Main Road Madurai – 1 2. General Stores BSPATIL 62
  • 63. Near Bus Stand, Madurai – 1 Our bankers are State Bank of India, M.G. Road, Madurai. Please complete your formalities as earlyas possible.Thanking you, Yours sincerely,Model 56 : Status enquiry from a seller to a prominent businessmanTel. 9769 Gram. : MEHTA MATHEW & SONS (Publishers & Booksellers of Indian Book in all language) Gandhi Nagar, Street Palace, Bangalore – 560002 5th Sept. 2002The ManagerPrem Book Depot,Agra – 282003 CONFIDENTIALDear Sir,We have just received an order from the Great Book Sellers from Agra and they want to purchase on creditbasis to the extent of Rs. 4,000. Since they are a new party to us, we know nothing about them. Therefore,we request you to furnish us the financial position and creditworthiness of the firm. They have your namefor reference purpose. We fully assure you that any information supplied in this regard will be treated as most private andconfidential. At the same time, we also assure you that similar assistance can be had from us, when suchoccasion arises.Thanking you Your sincerely For Mathew & Sons P.M. MathewModel 57: Asking for names of reference.Tel : 2172Gram : THOMSON THOMSON & COMPANY 26, Deleep Road, Sent Fort, Bangalore – 560018 5th Sept. 2002 BSPATIL 63
  • 64. M/s. Raj & co.Mahal Street,Kolkata – 700071Dear Sirs,Thank you for your order No. 67 of 30th Aug., 2002. Attention is being given to execute it.Whenever a new firm sends any order to be supplied on credit we ask for a couple of trade references. Ishall be grateful to you if you will send us the names and addresses of two firms of your town, as early aspossible.We request you to specify the period for which you require credit.Thanking youYours sincerely,For Thomson Co., KolkataManager.Model 58: Concerning Status of firm RAMNATH BROTHERS 13 Raman Street, Kolkata – 700014 15th Setp. 2002M/s. Patel & sons,Church Gate,Fort,Mumbai – 400018Dear Sirs, We received an order from M/s. Ghosh & Sons. As the firm is quite unknown to us, we wish to haveyour opinion concerning their financial soundness and business reputation. Moreover, they demand creditbusiness. We shall be glad to know whether you recommend their case for a credit to the extent of Rs.10,000/-. We enclose a stamped and self-addressed envelope for reply.Thanking you, Yours faithfully, For Ramnath Bros.Model 59: Asking Bankers to obtain credit information of a buyer Gram : Manohar Phone : 1243 MANOHAR & COMPANY (Premchand Marg., Assam) Dated………….No. BSPATIL 64
  • 65. The State Bank of India,Jabalpur. CONFIDENTIALSirs, Will you please obtain for us credit report of M/s. Mohanlal & Sons. They have given us your nameas a reference. They wanted to purchase goods on credit up to the extent of Rs. 4,000/-. Is it safe to grantthis credit? Your suggestion in this respect will be highly appreciated.An early reply is earnestly solicited. Yours sincerely. For Manohar & Company.Model 60 : Letter taking up customer’s reference TRIVEDI & COMPANY Thallakulam Madurai – 625010 25th June, 2002The Manager,Johnson & Sons,Big Bazar, Aruppukottai-626 101Sir, Messrs, Chettiar and Sons of Aruppukottai have asked us to open an account with them and gavegiven us your name as a reference. Will you, therefore, please inform its whether they are financially sound and enjoy good reputation?In particular, we shall be glad to have your advice as to whether we may grant them a credit, say to theextent of Rs. 30,000. Any information with which you may favour us will be treated as confidential, and we assure youthat we shall be grad to render you like service, whenever such an occasion arises. We enclose a self-addressed cover duty stamped.Thanking you Yours sincerely, For Trivedi & companyModel 61: Enquiry letter with customer’s referenceGram : SellerTel. 18744 SELLERS & COMPANY st 1 Floor, West Street Way, Agra – 282010 5th July-2002.M/s. Sahey & Co.Patna – 800 011 PRIVATE & CONFIDENTIALSirs, BSPATIL 65
  • 66. The Mumbai Mart of West Street, Agra have requested to open an account for their firm. They intheir letter have given us your name as a reference. Therefore, will you kindly inform us about the financial position and soundness of the firm. Theaverage amount to which we may grant them credit may clearly be shown in your reply.The information you send will be treated as confidential. Also we assure you that the same service will berendered to you when occasion arises.An addressed envelope duly stamped to enclosed. Please make use of it.Thanking you. Yours faithfully For Seller & Co. (P. Banarjee)Model 62 : Making a credit enquiry to a firm Gram : Mahesh Phone : 4653 MAHESHWARI TRADERS Burra Bazaar, Kolkata – 700012 5th Nov, 2002M/s. Mohanlal & Sons,Bajaj Street,Madurai – 325002 CONFIDENTIALDear Sirs, Messrs. Krishna Trading of Madurai have placed an order with this firm and wish to have credit ofRs. 7,000 for three months. They gave your name for reference and stated, that you have the best traderelations with them. I shall be grateful to you if you will please inform me by return of post whether, to your opinion, isit wise to allow them the credit shown above. I assure you that the information you send will be kept strictly confidential and I am prepared toreciprocate.Thanking you Yours truly, For Maheshwari TradingModel : 63 : Asking for credit and giving references OWEN & COMPANY 6,Main Street, Allahabad. th 5 June, 2002M/s. Alladin & Company23, Lal Street, BSPATIL 66
  • 67. Madurai – 625019Sirs, We thank you for your quotation dated 10th June and shall be glad if you will please send us thegoods mentioned in the enclosed order against our acceptance of a 60 days bill for the amount of theinvoice. We give the names of the following firms as reference to enable you to inquire into our financialstanding. 1. Messrs. Sharma Trading Co. Princess Street, Madurai – 625005 2. Messers. Mossa & Co. Near Bus Stand, Madurai – 625001Our bankers are : The Punjab National Bank and the South Indian Bank.We shall appreciate an early intimation of your decision concerning this order.Thanking you.Your truly.For Owen & Co.Encl. : as aboveModel 64: Favourable reply PATEL & SONS Church Gate, Fort, Mumbai-400001 10th September, 2002M/s. Raseth Brothers,13, Raman Street,Kolkata – 7000108Dear Sirs, We have your enquiry dated the 5th of Sept……… We are glad to inform you about the firm. Theyenjoy sound financial position and full respect in the local market. We have been dealing with this firm forthe last 15 years and our account with them runs into lakhs of rupees. They always take the advantages ofcash discount. They are very punctual in payment. Hence we recommend that you can give them credit foran amount even beyond the sum you have mentioned. Yours sincerely, For Patel & Sons.Model 65 : Most favourable replyGram : WilliamPhone : 5874 WILLIAMS & COMPANY BSPATIL 67
  • 68. Park Street, Mumbai – 400010 5th Sept, 2002M/s. Parkinson & Sons,Kolkata – 700018 CONFIDENTIALDear Sirs, We are glad to receive your letter of 30th August, 2002 M/s. Robinson Trading Company is a soundfirm and has carried on in this town for many years. They have the business ability and enough financewith them. We have our business transactions with the firm and allow credits and our confidence has neverbeen misplaced.Yours sincerely, For Williams & Co. ……………………Model 66 : Non-Committal reply DUNNIMOR & BROTHERS Street Road, Patna. 31st August, 2002M/s. Rajesh & Sons.Street No. 1Lucknow.Dear Sirs, In reply to your letter of 29th August, 2002 we inform you that we have only cash dealings with thefirm you have mentioned. Therefore, we regret to inform you that we are unable to express an opinion onthe financial position of M/s. John Mathew & Sons.Yours faithfully, For Dunnimor & Brothers. …………………………….Model 67 : Banker’s credit reportNational BankHigh Street, Patna. Gram : National Phone : 8735 5th Sept. 2002M/s. Raju & CompanyAgra.Dear Sirs, BSPATIL 68
  • 69. It is against the custom of the bankers to give such information to any parties concerning thefinancial position of a firm. It is, therefore, advised that an application may be submitted through yourbanker and the required information will be made available to you. Yours faithfully For National Bank …………………..Model 68 : Unfavourable reply SAHEY & COMPANY West Street, Patna. th 19 Sept., 2002The Seller & Company1st Floor,West StreetAgra. STRICTLY CONFIDENTIALDear Sirs, We have your letter of 5th Sept., 2002 We feel sorry that we cannot give any assurance regarding thefirm. Their financial position was sound upto the death of a partner, a year back. Since then their businessdealings have not been satisfactory and their financial position is considerably weak. Under thesecircumstances we recommend you to have only cash dealings with them. Please not that the information given is kept in strict confidence and does not leak out from yourfirm. Yours sincerely For Sahey & Co.Model 69 : Unfavourable credit report Gram : Prem Phone : 7684 PREM BOOK DEPT. Agra Road, Agra. 10th Setp. 2002M/s. Mathew & Sons,Gandhinagar,Street Palace,Bangalore – 560001 CONFIDENTIALDear Sirs, We have your enquiry letter of 5th Sept. 2002. We regret to give an unfavourable reply. Last year, we had occasion to deal with them. It is our experience that trading with them on creditwas not profitable, because payments were much delayed. Thereafter we deal with them against cash BSPATIL 69
  • 70. payment. We do not feel that anything more to be added than the above – mentioned experiences of ours. We are confident that you will keep our information strictly confidential. Yours faithfuilly, For Prem Book Dept. ……………………….Model 70 : An Unfavourable reply………………………………..………………………………..Sirs, We are sorry that we are unable to give you the assurance you seek in regard to the firm inquestions. They enjoyed sound reputation till the death of the senior partner, which happened a few yearsage. Since then their dealings have not been satisfactory and so far as our information is concerned theirpresent financial position is not very sound. In these circumstances, we would recommend cashtransaction only. Please note that the information is given in strict confidence and we disclaim all responsibility forit. Yours sincerely For………………..Model 71 : Status enquiry MAHESH AND BROTHERS 16, Avenue Road, Kochi – 682015 25th August, 2002M/s. Harihar & Sons,General Merchant,Monkey Street,Bangalore.Dear Sirs, We have received an order for Rs. 6,000 worth of paper items from a firm, mentioned in theenclosed slip. We propose to draw on them for this amount at four months. As the firm is quite unknownto us, we ask the favour of giving us the information regarding their creditworthiness and businessreputations. We assure you that the information with which you will favour us, will be treated as strictlyconfidential. We shall not fail in our duty to reciprocate similar service, whenever such occasion arises. Let us offer you our thanks, in advance, for any help which you may render to us. We enclose a stamped and self addressed envelope for your convenience.Thanking you. BSPATIL 70
  • 71. Yours sincerely, For Mahesh & Brothers.Encl. : A slip containing the name of the firm.Model 72 : Asking a reference RAMLAL AND SETH (General Merchant) George town, Coimbatore – 641010 28th August, 2002M/s. Baboolal & Sons.Highway,Calicut.Dear Sirs, We are glad to receive your order of 20th August for supplying 500 reams of Sun Brand foolscappaper, for which you have undertaken to pay in 45 days. Your kind order is giving our best attention and we hope to dispatch the goods by first week ofnext month. In the meantime, permit us to say that this is the first order we have received from you. wehave had no business dealings with you in the past. So as a custom of our trade we shall be obliged if youwill please let us know the name of a firm, to whom we can ask for reference. We hope that you will not mind this business practice of ours to ask for a reference before openinga new credit account. We look forward to hear from you as early as possible so that the goods may bedispatched within the time given.Thanking you. Yours sincerely For Ramlal and SonsModel 73 : Letter taking up customer’s reference: RAM MANOHAR & SONS 112, M.G. Road Mumbai – 400110 30th Aug., 2002Messrs. Sardar & Company,Lucknow.Dear Sirs, Messrs. Premchand & Sons of Lucknow propose to buy goods from us on three months’ credit andhave given us your name as reference. As the firm is not known to us, we shall deem it a favour if youkindly take the trouble of informing us about their financial soundness and business integrity. We shall beglad to know specially if we can allow them credit upto Rs. 5,000 at a time. We assure you that theinformation supplied to us will be kept in strict secrecy and we shall be glad to reciprocate similar service BSPATIL 71
  • 72. to you when such occasion arises.Thanking you, Yours truly For Ram Manohar & Sons. (Manager)Model 74 : A favourable reply SARDAR AND COMPANY Gandhi Nahar, Lucknow. th 16 Sept. 2002M/s. Ram Manohar & Sons,112, M.G. Road,Mumbai – 400110Dear Sirs, In reply to your letter of enquiry regarding the status of M/s Premchand and Sons, Lucknow, we areglad to inform you that the firm in question enjoys full respect and confidence in the local market and wealso welcome this opportunity to assure you that we have full confidence in them.The proprietors of the firm are men of high business reputation and good financial standing. They havebeen carrying on business in this city for many years. We have been doing business with them for the lastfive years and we have found them prompt and regular in their payments. We have never hesitated to allowthem credit for an amount beyond the sum you have mentioned and our confidence has never beenmisplaced.Thanking you Yours sincerely, For Sardar & Co, (Manager)Model 75 : Refusing credit KOLKATA SOAP WORKS Beach Road, Kolkata – 700120 18th July, 2002The Patlipura StoresPatna.Dear Sirs, With reference to your order of 10th July, 2002, we are sorry to state that the information receivedby us from private sources about your firm is not favourable enough to permit us to meet your wishes. BSPATIL 72
  • 73. We trust this position will so change in the near future as to allow us to open an account for you.meantime, we suggest that the ordered items will be supplied on C.O.D. basis. We hope that, taking intoaccount the high quality of our goods, our low prices and our cash discount of 2% you will accept oursuggestion. Yours faithfully, For Kolkata Soap …………………….. BSPATIL 73
  • 74. Chapter XII CONFIRMATION OF ORDERSAfter the receipt of the order, the seller will fulfill the requirements of the buyers, according to the termsand conditions of the quotation and order. if the delivery takes a longer period the seller is supposed tosend a letter of confirmation to the buyer. If he can supply the ordered goods immediately, the seller maynot send the confirmation letter. Confirmation letter, means the letter of acceptance concerning supply ofthe ordered items. New customers and old customers are dealt with differently. There may be printed forms for thispurpose. A personal letter must be sent to a new customer in order to create satisfactory relations. Theregular customers may be sent a form of acceptance duty filled in. When writing a letter of confirmation, the order No., date, mode of dispatch, thanks to the buyeretc., may be stated. It is sometimes possible that an order may be found defective and may create doubtsin the mind of the seller. Then the letter must be very tactfully dealt with. The customer should not beblamed for omissions or errors. However, the buyer must be informed of them. He should feel that theseller takes care to protect his interest if the goods are not in ready stock. Mention the date of deliveryexactly. If they are not available, suggest any substitution.Model 76: Confirmation HIGGS & BELL Ltd. 16, Wallace Road, Allahabad 12th December, 2002Messrs. Parkinson & Partners,Bridge Road,Poona.Dear Sirs, We are glad to receive your order to dispatch 100 Nos. of Photo Album @ Rs. 72.00 each. In yourorder you have mentioned that the cover of the album should be black. But generally people prefer theblue colour. We have ample stock of blue covered albums and we in our stock possess only 40 Nos. of thecolour preferred by you. the price is the same. We therefore, request you to intimate to us whether 60 Nos. of blue and 40 Nos. of black coveredalbums may be supplied to you. on confirmations of this we will dispatch them soon.. Thanking you. Yours sincerely For Higgs & Bell Ltd.Model 77 : ConfirmationGram : ReliancePhone : 9835 RELIANCE ELECTRICAL COMPANY Horby Road, 1st Floor, Mumbai – 400110 8th June, 2002 BSPATIL 74
  • 75. The Proprietor,Swadeshi Trading Co.,Poona.Dear Sir, Thank you for your order dated the first of June, 2002. As you desire the ordered articles will bedispatched on or before 12th June, 2002. You will be glad to know that Mr. R.M. Gopal has been appointed as our sales representativecum-mechanic for your area. Whenever you face any trouble with the goods, please contact him by ringing3425 and he will be glad to guide you.Thanking you. Yours sincerely For Reliance Electrical Company.Model 78: Confirmation PREM TRADERS Jew Town, Kochi – 2, 3 , September 2002. rdMessers. Mather Sons.Henry Town Area,Poona.Dear Sirs, We are glad to accept your order dated the 29th Aug. 2002. Owing to the unexpected strike of the mill workers from 20th of August, our factory is not workingin full swing. We are taking steps to compromise with their leaders and bring about a settlement regardingtheir demands. We fully hope that if the workers and we are compromised we shall take your order in strictrotation and execute your order on or before September…………… We hope to be excused for this inconvenience caused to you by factors beyong our control.Thanking you Yours faithfully For Prem TradersModel 79 : Confirmation A.K.SHAH & COMPANY D. Naoroji Road, 5th Floor, Mumbai – 400115 BSPATIL 75
  • 76. 3rd Setp., 2002Messers Sharma Tradings,Wright Town,Jabalpur.Dear Sirs, I am glad to acknowledge the receipt of your order dated 30th August 2002. Owing to the stock taking rush I am compelled to ask you for 10 days time for delivery of yourordered items. But I am taking every step to execute your order as early as possible. Hope you may permit me to do so. Yours sincerely, For A.K. Shah & Co. EXECUTION OF ORDERS After the confirmation of the order, the seller will execute the order. the seller will have to takeevery care in executing it without any mistake. He should supply exactly the order placed by the buyer.The letter of execution along with invoices is sent out. The letter should contain reference No. date ofdispatch, mode of carriage, etc. if a part of the requirement is executed clear information must be given asto why remaining items are not supplied. Delay in delivery is followed by other complications. It is better to inform the buyer about the delay,and the causes of delay. Every step should be taken to establish the best relationship.Model 80: Offering a substitute for ordered item RAM DAS & COMPANY 145, Mahal Road, Agra – 282 003 21st June, 2002.Messers, Mahesh & Sons,N.H. Road,Banaras.Dear Sirs, Thank you for your order No. PMS/45 dated 15th June for the supply of “Bright Hair Cleaner” butregret to inform you that we are unable to supply the particular brand because its production has beenstopped. We took this decision because of the total silence from the customers. Therefore, we believedthat the particular product had gone out of demand in the market. However, a new brand “Super fine” Hair cleaner is being manufactured. This brand is better thanour earlier product. The present brand is the result of two years’ long research and is popular with dealersin almost all cities throughout the country. BSPATIL 76
  • 77. Therefore, please go through the price-list and let us have a trial order from you as early aspossible. Thanking you, Yours sincerely, For Ram Dass & Co.Encl.: One bookletModel 81 : Substitution suggested Gram : Dassa Phone : 4657 P.M. DASS & CO. 164, High Street, Banaras. 3rd Sept., 2002Messers Ram Das & Sons.Agra-282003Dear Sirs, Thank you for your order No. 57 of Aug.., 2002 for supplying one dozen Japan Slide Rules Sinceour stocks have been cleared and the same are to be imported, we are not in a position to supply the samebefore 15th of Sept. 2002. But we have German made Slide Rules in our stocks. Both the Japan made and the German madeSlide Rules bear the same price and have the same durability. If you prefer the Japanese stuff please writeto us so that the same can be sent to you.Thanking you. Yours sincerely For P.M. Dass & Co.Model 82 : Execution of an order ORIENT GLASS WORKS Glass House, Park Street, Chennai – 600020 3rd Sept. 2002.Messrs. Roy and Sons,Taj Mansion;First Floor, Mumbai 625002Dear Sirs, We thank you for your order dated 23rd Aug. 2002 and shall be pleased to arrange the dispatch ofyour requirements by tomorrow. The bill along with R/R and insurance bill will be sent to you separately. Before fitting the machine,please call our representative to your office in order to give you’re a demonstration on the machine. Theman who handles the machine can clear all doubts. Please take this advantage. You can contact him by BSPATIL 77
  • 78. dialing 3476 between 2 P.M. on all working days. Thanking you Yours Sincerely For Orient Glass WorksModel 83 : Treating order from an undesirable party BANARJEE BROTHERS Park Street, Agra-282002 3rd Sept. 2002Messers Soni & Company,Lucknow – 226008Dear Sirs, We thank you for the order dated 23rd Aug. 2002. Your order has already been booked for execution. We request you to send the price of items,amounting to Rs. 210.00 (Rs. Two hundred and ten only), less 1½ % discount. The recent policies are in accordance with the decision taken by the management of our firms andwe hope you will avail yourselves of the discount offered. On receipt of the amount, we shall be glad to dispatch the goods promptly.Thanking you. Yours faithfully, For Banarjee Brothers. ………………………..Model 84 : Extension of delivery period SMALL INDUSTRIES LTD. Great Way, Mumbai – 400101 3rd Sept. 2002Messers Sohanlal & Sons.Delhi – 110001Dear Sirs, I am glad to receive your order dated 30th Aug. for supplying woolen cloth of 1000 metres. But weregret to inform you that our whole factory is mainly employed in the production of woolen garments tothe military departments. Therefore, it may not possible for us to make delivery of your demand within 20days. If however, you can extend the time of delivery by 5 weeks, we shall be in a position to make thedelivery of your requirements. Please inform us of your decision. Thanking you. BSPATIL 78
  • 79. Yours truly, For Small Industries Ltd.Model 85: Execution of an order NATIONAL MILK PRODUCTS Siyyan Street, Temple Door, Bangalore – 560001 2nd Sept. 2002.Messers. Krishna Tradings,Rajendra Nagar,Bangalore – 560028Dear Sirs,We are glad to inform you that your order No. 67 of 15th August 2002 is ready for dispatch on Monday, the4th September 2002. Our delivery van will deliver the goods at your door by the evening along with theinvoice and delivery note.The question of discount asked by you has been referred to Board for taking a favourable decision and thesame will be intimated to you in due course. If it is approved, we shall make a credit to your account withthe amount of discount.Yours faithfully For National Milk Products ………………………………Model 86 : Order executed KRISHNA TRADING CENTRE Phone : 3526 Gram : Krishna Krishna Colony Ramnagar, Lucknow – 226003 15th Aug. 2002Messrs. P.M. Das & Co.Kolkata – 700004Dear Sirs, We are glad to receive your order dated 25th August 2002. The monotype printing machine is beingdispatched today by the passenger train. The bill in triplicate and the railway receipt are enclosed. BSPATIL 79
  • 80. The machine was tested before dispatch, and we believe that you will find its performance quitesatisfactory. The guide book, which contains the working method, is send along with the machine. If you find any difficulty in the operation of the machine, please contract our travelling mechanic,who is staying at Roy Brothers Hotel, Kolkata. Yours sincerely, For Krishna Trading Centre ……………………………….Encl : as aboveRefusal of an order Sometimes, the businessmen will have to refuse certain orders due to many reasons. A few caseswhere he cannot do business are given below: 1. He cannot do business in a particular area because of exclusive agency. 2. If the order is from an insolvent customer, then there is every possibility of the amount going to bad debts. In order to avoid unnecessary correspondence and unreliable credits, the businessmen avoid the supply of goods to such parties. 3. Sometimes, an order may be refused by seller on the basis of secret information – status enquiry through other firms. 4. Sometimes certain goods are not open for sale to all parties, due to restriction by laws.Model 87 : Non-execution of order on technical ground Phone : 3519 Gram L Malik MALIK & BROTHERS Street Road, Garden Area, Nagpur rd 3 Dec. 2001Messrs. R.P. Soni Trading Co.,Lucknow – 226005Dear Sirs, Many thanks for your order dated the 29th of November for supplying the drilling machines ofMessrs. Ram & Co. We regret our inability to supply them, as we do not represent that firm. You might beaware that Messrs. Lalsons, Manufacturers of this area are producing similar type of drilling machines. Ifyou choose the drilling machines of M/s. Lalsons, please let us know by return of post, so that we cansend you the catalogue along with the price-list. Yours sincerely, For Malik & Bros. ………………………Model 88 : Inability to Supply Gram : Unique BSPATIL 80
  • 81. Phone : 1245 UNIQUE DEN & CO. Palace Road, Allahabad. 10th December 2002The Crompton Ltd.West StreetPatnaDear Sirs, We are glad to receive your order for 50 grosses of ball pans. Since the Government of India hasrestricted imports of foreign ball-pens and due to exhausted stocks; we are not in a position to makedelivery. However, a catalogue of Indian ball-pens is enclosed. It will give you an idea about the durabilityand fineness of our Indian ball-pens. If you are interested, we shall send you three numbers of such pens,free of cost, on a trial basis. Further communication is invited. Yours Faithfully, For Unique Den & Co.Encl. : Catalogue Cancellation of an order Circumstances may arise sometimes that orders have to be cancelled. The main cause of this maybe the delay in the execution of orders. Unforeseen situations also create impossibility of execution, suchas variation in prices, insolvent party, etc. the letter cancelling the order most mention the reason for thecancellation. If the buyer is cancelling the order, the communication must reach the seller before executionof the order. if the cancellation letter is received after the goods are dispatched, the buyer should makegood the loss. If the buyer wants to cancel the order we must hurry up and take immediate action so thatthe letter may reach the seller before the execution of the order.Model 89 : Cancellation of order Gram : Raju Phone : 1436 RAJU & COMPANY Hornby Street, Chennai – 600018 3rd Jan. 2002Messrs. Raj. & Sons,Kalai StreetMumbai – 400033Dear Sirs, With reference to our order No. 57 of 16th De., 2002 we have heard nothing from you. the reason isnot known to us.The period for delivery of our demand has already expired and no reaction is found from, your end. So weare compelled to cancel our above – mentioned order, which may please be noted. Yours sincerely, For Raju and CompanyModel 90 : To effect correct supply Gram : Shah BSPATIL 81
  • 82. Phone : 1235 A.K. SHAH & COMPANY D. Naoroji Road, Mumbai – 400051 3rd September 2002M/s. Sharma Stores,Cantonment,Jabalpur,Dear Sirs, Please refer to our order No. 125 of 14th November, 2002. Our salesman, who visited your shop lastweek, has informed us about the manufacturing defects of your products. Therefore, please make delivery of the machines strictly according to the quotations andspecifications supplied; otherwise the order may please be treated as cancelled. Yours sincerely, For A.K. Shah & Co.Model 91 : Intimation of Increase in price KALA NIKETAN TRADERS (Dealers in Radio and Wireless) Kala Mandir Bhopal 18th April, 2002Messrs, Bhavan AgenciesPalace Road,Gwalior. Change of priceSirs, Thank you very much for your order No. 74 of 14th April 2002, but regret to inform you that theprices of radio valve B 12 have increased from Rs. 9.00 to Rs. 11.0 owing to the imposition of surchargetax. Therefore, I am not in a position to supply your goods at the earlier price. The imposition of surchargetax is applicable tax is applicable to all the Indian dealers as a whole. Therefore, you find no possibility ofgetting the valve B 12 at the old price and 1 presume that you may agree to get it at the new price. I will send the valves on your confirmation.Thanking you. Yours faithfully, For Kala Niketan Traders.Model 92 : Refusing Credit RAJESH & COMPANY Temple Road, Cantonment, Agra (U.P.) 17th April 2002 BSPATIL 82
  • 83. Messrs. Chaterjee & Sons,Raman Street,Allahabad.Sirs, In response to your letter dated 31st March, we regret to stat that the information we received aboutyour firm from private sources is not quite favourable. Hence we are not in a position to extend credit. However, we are fully confident that your position will so change in the near future that we canopen an account for you. in the meantime, we suggest that you are at liberty to order for goods on a C.O.D.basis. We offer high quality goods along with 2% discount for cash.Thanking youYours truly, For Rajesh & Co. Chapter XIII COMPLAINTS AND THEIR ADJUSTMENTS Irrespective of the best managed business, mistakes and errors will often occur. Every businessmanwill take precautions and care in order to satisfy his customer, because he wants to increase his sales. Ifany customer is dissatisfied, he may turn away from the business door. But whatever be the motive tosatisfy the customers, the businessmen often receive letters of complaints about delay in dispatch, wrongdispatch, errors in invoice etc. Sometimes when a customer is dissatisfied or annoyed he immediately drafts a letter ofdiscourteous nature and sends it to the businessman. But he should not do so. A letter of discourtesy ordispleasure or anger will do more harm than good. So it should be remembered that the complaints mostbe genuine and written in a courteous manner. A courteous letter cannot only win the cooperation butreap the best results. When a complaint letter is sent, it is understood that it communicates the errors or mistakes madeby the seller. It requests him to rectify those errors or mistakes at his end. A letter of complaint must bepersuasive in nature and courteous in language. Let us discuss the chief characteristics of a well-draftedcomplaint letter. 1. A Complaint must be genuine Before making a complaint, make sure that the complaint is of genuine nature. False statements should not be made. Vague letters carry no purpose. What is wrong in the transactions most be clearly drafted. 2. A Complaint letter must be courteous Every letter you send must be written courteous language, giving respect to the reader. It should not hurt the feelings of the reader. A letter of friendly nature will fetch cooperations from the reader and facilitate speedy and sincere corrections. Never write to point out that a particular man or particular firm is wrong. Write an impersonal letter and at the same time press the reader to find out the mistake. Care should be taken to avoid rude and intolerable statements. 3. A letter of Complaint must be complete The letter of complaint must convey the full information to the reader. In order to give the full idea to the recipient of the letter, references to the previous letters, which are important and connected with the complaint, should be given. By referring to the complaint and related letters the reader is enabled to take prompt action. Absence of complete information will result in unnecessary correspondence and inordinate delay. 4. A letter of Complaint must make concrete request for redress BSPATIL 83
  • 84. Once the letter is posted contents of the letter can not be changed. The contents of the letter must be true and unchangeable. An account of the inconvenience caused should be stated clearly Suggestions of the writer, as to what the reader should do, must also be stated clearly. On getting a letter of complaint, the businessman investigates the matter in detail. The original order letter, its reference number, description of goods, the price list on which the order is based invoice number, delivery note etc. should be presented before the investigator to help him to find the causes. By quoting all these in the complaint a speedy action can be had. The letter of complaint must not be apologetic in nature but must be of an advisory nature to make good the troubles caused. The seller may not always be in the wrong. It can also happen that the buyer himself makes mistakes and the businessman should not be blamed for them. When a complaint letter is received the businessman does not hurry to reply without a through enquiry. To find out the error is not always easy. The error may be either with the customer or with the seller. Delay caused by transport companies also cannot be ruled out. But many letters are exchanged, generally, before the mistakes are located. A few occasions for writing complaint letters 1. Inordinate delay in the delivery of goods. 2. Price charged higher than quoted. 3. Goods delivered at the wrong place. 4. Difference in quantity or quality of goods. 5. Mistakes in the Bill. 6. Arrival of goods in damaged condition. 7. Receiving goods other than those ordered. 8. Breach of terms and conditions. 9. Unsatisfactory services. 10. Discourtesy shown by the staff etc.Model 93 : ComplaintGram : Davis Tel. : 4235 DAVIS & COMPANY Delhi -110040 21st Sept. 2002M/s. Simmen & Co.,Banaras RoadBanaras.Dear Sirs, Please refer to our order dated 13th September based on your price list of July. We ordered 500kilograms of rock powder. You have sent 50 packets each containing 10 kilograms. But 5 packets our ofthe 50 contain only 8 kilograms of rock powder. The underweighing packets are kept unopened. Please letus know the reason. Shall I send those 5 packets to you or will you send 10 kilograms of rock powder to us? Please take an early decision and let us know of it. Yours sincerely BSPATIL 84
  • 85. For Davis & Co.Model 94 : Complaint – Inferior quality BROWN & DEVINE LIMITED Church Road, Agra (U.P.) Agra 282002 21st Sept. 2002M/s Roberts & Co.Kolkatta – 700012Dear Sirs, Please refer to our orders No. 92 of 10th Sept. 2002, written we ordered 100 numbers of table clothof 1½ x 1 metre brown in colour. But it is surprising to find our that all the table clothes are black in colour.Black coloured table clothes have got no market in this area. However, they can be sold only at reducedprice i.e., 7 to 10% less on the face value. if you agree to this, we are prepared to accept them. Otherwise,write to us whether the goods could be sent back to you for replacement. Yours Faithfully For Brown & Devine Ltd.Model 95: Complaint – Delay in delivery Gram : Progress Tel : 2435 PROGRESS BOOK DEPOT M.P. Road, Mumbai – 400012 21st Sept., 2002M/s. Rajesh & Sons,West Street, Kolkata – 700012Dear Sirs, With reference to our order No. 42 of 2nd September, no action has been taken at your end. Thesebooks ordered for are urgently required by students. Being a Book seller I can not dissatisfy customers,particularly the students. The students are visiting my daily and demanding their books. Negative repliesto the students will affect my sales. Therefore, it is requested that the books may please be dispatched immediately, throughpassenger train. In future, such delay may be avoided. Yours faithfully For Progress Book DepotModel 96 : Complaint – Delay in deliveryTel. : RemeTel: No. 2436 RAMESH & COMPANY West Street, Kolkatta 21st Sept. 2002 BSPATIL 85
  • 86. M/s. Mahesh & Sons,Palace Road, AgraDear Sirs, Please refer to our letter dated 1st of September, which has been acknowledged by you vide yourletter dated 8th September, but the goods have not been receive d so far. This delay causes muchinconvenience for us to deal with those buyers, for whom the order has been placed with you. Please refer to your letter mentioned above, in which you understood to send the goods on orbefore 12th Sept. On the strong undertaking by you we have also promised our customers to supply in time.Shall I claim damage for this breach of agreement? No. However, we can wait till 30th of this month. Hope that you will take personal interest in dispatching goods by return of post. Yours sincerely, For Ramesh & Co. ……………………..Model 97: Complaint – Delay in delivery KAPURCHAND AND COMPANY Dealers in woolen clothes Chandni Chowk, Delhi 11006 st 21 Sept., 2002M/s Williams Ltd.,Gateway, Mumbai.Dear Sirs,Please refer to our order No. 97 of 15th August 2002, and reminder of 31st August. We have heard nothingfrom you. the winter season is drawing near and we want to stock woolen clothes as there will be greatdemand for the same. From the first week of next month, the customers will be visiting our shop. We haveclearly mentioned the date in the order itself, i.e. 10th September, But we regret to say that we have notheard anything from you.We shall be grateful to you if you will send them immediately through special transport service. Unlessthey are supplied to us immediately, we shall be forced to cancel our order and get the same locally. Hope you will do the needful on fulfilling the order at an early date. Yours faithfully, For Kapurchand & Company …………………………………Model 98 : Complaint-Discount unaccountedDAS & COMPANYChittaranjan Colony, Kolkata BSPATIL 86
  • 87. 21st September, 2002M/s. Maganlal & Sons.102, Gandhi Market,Delhi.Dear Sirs, Sub: Discount We should like to draw your attention to your bill No. 546 dated 15th September 2002. The bill hasbeen prepared on the basis of the price list of August. In the price list you have mentioned that a discountof 10% will be given to all orders above one thousand rupees. Our order amounted to Rs. 1256.00 (Onethousand two hundred and fifty six only). But in the invoice you have made no account for the discount.Therefore the bill is enclosed herewith for effecting necessary changes.Thanking you. Yours sincerely For DAS & Co. ……………………Model 99 : Complaint – Misbehaviour of staff HALKETT & CO. Chahop Road, Allahabad. 21st Sept. 2002M/s. Jacksons,Agra.Dear Sirs, I visited your shop on the 15th of this month in order to purchase some good cameras forpresentation. You were absent on that day and the salesman were new to me. They perhaps, could notrecognize me as a dealer in photography. One of the salesmen of your shop refused to show me all themodels of cameras, perhaps thinking that I may not purchase them. Fortunately a friend of ours visited theshop. On hearing the talk between me and your man, the friend told him of the business relationship ofmine with you. however, I got my requirements. So, it is advised that you please look into the matter and prevent such things in future. Yours faithfully For Halkett & Co.Model 100 : Complaint – missing pages GENERAL BOOK DEPOT Palace Road, Mumbai – 400012 21st Sept. 2002 BSPATIL 87
  • 88. M/s. Prem Book Stall,Agra.Dear Sirs, Thank you for your consignment containing 150 copies of the dictionary of John and Mathew. Butin two copies it is noticed that pages from 356 to 372 are missing. The mistake may have occurred in theprinting process. Both are not sale-worthy. But if we can cut half the price, they may be sold. A dictionaryis a permanent asset and none would like to have defective ones. Therefore, please let us know whether we shall send them back or try to sell them at half the price. Yours, sincerely, For General Book Depot …………………………….Model 101 : Reply to complaint of defective goods HACKWELL & PARTNERS Temple Street, Allahabad 21st Sept., 2002M/s. Brown Sons & Company,Lucknow – 226005Dear Sirs, We have just received your letter of the 19th Sept. 2002, but regret to learn that the clips of somepens are loose fitted. It is our practice that before making a dispatch, we carefully examine each and very item. Still suchdefects might have occurred owing to oversight of the dispatching section.However, you can send back all those defective foundation pens to us. We will replace them as soon as wereceive them. The expenditure you incur for sending those pens back to us, will be met by us, or adjustedin the next payments from your side.We may be excused for this inconvenience caused to you. in future we will take every care beforedispatching. Yours sincerely, For Hackwell & Partner.Model 102 : Allowing a complaint claim SUNSHINE WORKS Church Road, Agra. 21st Sept. 2002M/s. Chakraborty & Sons.Kalkata.Dear Sirs, BSPATIL 88
  • 89. We have your letter dated 11th September, 2002 and noted with regret that your are dissatisfied with thegoods we sent you. if the dry milk powder will not fetch a market on the face value, we shall allow, as youhave desired, to sell it on reduction price; i.e. 20% less than the price-list.When the milk powder was being loaded into wagons it was raining. It was possible that the tins mighthave got wet. Please excuse us for this inconvenience caused to you. Yours sincerely For Sunshine Works.Model 103 : Complaint – Wrong dispatch SHEPARD & BULL Church Road, Jabalpur 24th Sept, 2002M/s. Trivedi Stationers,Cantonment.Bhopal.Dear Sirs,Please refer to our order No. 198 of 2nd September, 2002. Our order was for supplying 500 sleevelessbaniyans of 32” size @ Rs. 30 each. Today the goods have arrived. But we are surprised to see that 100baniyans are of size 36”, 100 baniyans are of size 30” and the remaining are of the ordered size. Theinvoice you have sent us contain the price of 32” sleeveless baniyans. As per the order, the invoice iscorrect, but when the bill is tallied with the goods, it differs widely. Therefore, please let us know what isto be done with the wrong dispatch. Since we are having enough stock of baniyans of the size 36” and 30”,we would not like to keep them with us. If there is any demand for this size of baniyans from this area,please let us know, so that they may be sent to those who want them. Please inform us of your decision by return of post so as to enable us to do what is necessary. Yours truly For Shepard & Bull ……………………..Model 104 : Reply to complaints regarding the quality of goods RAMLAL AND SONS George Town, Chennai th 20 Aug. 2002M/s. Baboolal & Sons,Highway,Coimbatore.Dear Sirs, We are sorry to note from your letter of 14th August, that you are dissatisfied with the conditions ofthe oil sent to you by us. The thickness you complain of the oil is due to their stay in our stock for aconsiderable period of time. This is the usual defect you will find in every type of similar oil. This type ofdefect can easily be removed by slightly heating them before use. This will make the oil thinner andrestore them in their normal condition. BSPATIL 89
  • 90. In view of our long-standing business connection with you, we are willing to allow you a specialdiscount of 5% and beyond this our margin of profit does not permit. We feel sorry for the convenience you have been put to.Thanking you Yours sincerely For Ramlal & Sons (Sales Manager)Model 105 : Reply to a complaint FOOD PRODUCTS LTD. M.G. Road, Mumbai. th 27 Sept. 2002M/s. Manoharlal Brothers,General MerchantsKanpur.Dear Sirs, We regret to learn from your letter of 20th September, that 10 tins of our Baby Food supplied toyou have been found unfit for consumption. On receipt of your complaint, we have investigated into the matter and have come to learn that 10tins from the old stock had been inadvertently mixed up with your consignment. This was done by a newemployee who was not thoroughly acquainted with the demarcation between the old and the new stock.We take full responsibility of this unfortunate affair and assure you of our sincere efforts to preventrecurrence of such mistakes in future. We are ready to replace those tins, but as our stocks of this brand are exhausted, we are sorry thatwe cannot offer you the substitute at once. However, we agree to allow you a special discount of 10% onthe consignment by way of compensation for these defective goods if you can, of course, dispose them inother ways, without any prejudice to our usual terms and conditions. We shall be glad to know your decision on this matter at an early date. We sincerely regret theinconveniences caused to you for our negligence and undertake to execute your future orders with utmostcare.Thanking you. Yours Sincerely, For Food Products Ltd., (Sales Manager)Model 106 : Reply to complaint letter HEMCHAND AND SONS Wright Town, Jabalpur. st 1 Sept. 2002The All in All Traders,Bhopal.Dear Sirs, BSPATIL 90
  • 91. We regret very much to know from your letter of 25th August that you have received B grade goodsinstead of A grade. We must ask you to accept our apologies for the error in supplying you with a wrongbrand of goods. The matter is receiving our attention and we are awaiting further information from the DispatchDepartment. We shall be writing to you as soon as their reply is received. In the meantime, you may keep the B grade which have been wrongly received by you. Thanking you. Yours sincerely For Hemchand and Sons. BSPATIL 91
  • 92. Chapter XIV COLLECTION LETTERSNo business can be run without granting credit. A firm has many customers and most of them may bepermanent customers. As the relationship becomes close with customers, it is obligatory on the part of theseller, to grant them credit sales, which are an important feature of retail traders as well as the wholesaletraders. When credit sales are increasing, the collection problems also arise.It is customary that every salesman, before granting credit to a party, makes thorough enquiry about hiscapacity to pay back the loans. But irrespective of the precautions, problems of non-remittance against thecredit sales will arise even after correspondence thread with the buyer. Businessmen keep proper recordsof buyers; but sometimes, due to oversight, the purchasers are overloaded with credit sales. Besides thisbuyers may be reluctant to part with money for the purchases or the services they have acquired.Therefore, almost all business firms are thus, no wonder, at one time or the other faced with problems ofcollecting overdue accounts. This type of work requires careful attention from the businessmen.Thus there are five stages in the collection work: 1. The first is an intimation letter along with a statement of accounts due. 2. The second is a reminder letter alongwith a copy of accounts due, it is more or less are appeal. 3. The third letter is of a firm but polite nature. 4. The fourth is a final appeal made to a party in demanding payment with a threat. Here one or two letters may be sent to the party depending upon the circumstances of each case. Requests are put forward in view of fairness, sympathy and respect for the customer. The reputation of the customers should be taken into account. This stage will come to an and at the threats of legal action. 5. Before taking legal action generally a brief and formal letter is sent to the credit customer.How to write effective collection letters? 1. Its tone should be positive, courteous and friendly. 2. “you” attitude is preferred. 3. Leave an interval of two weeks between two letters. 4. The customer’s conduct and circumstances may be looked into. 5. It must be friendly but firm. 6. Make a straight-forward request for payment. 7. Do not use post cards. 8. The approach must have twin purposes: (a) Collection of amount and (b) Retention of customers. 9. Always aim at customer’s enduring sympathy. An unpaid account passes through the following stages of collection correspondence. 1. Sending a statement of account. 2. Reminders. 3. Enquiry and discussion 4. Appeal and ungency. BSPATIL 92
  • 93. 5. Demand and warningModel 107 : First letter asking payment Gram : RAJESH Phone 2456 RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout Jabalpur. th 6 December, 2002M/s. Prakash & Co. Ltd.Bazaar Street,Mumbai-400001Dear Sirs, May I invite your attention to our account. A sum of Rs. 495.00 is due from you. the same amountis lying unpaid since last month. If realize that you are busy at this time and probably this may be thereason why the amount has escaped your attention. Therefore, this is written just as a reminder based onthe enclosed statement.Yours sincerely, For Rajesh Trading Co. P.N.Rajesh.Encl: as above STATEMENT OF ACCOUNT RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Jabalpur. 6th December, 2002No. 470/Bom. Dr. to M/s Prakash & Co., Bombay Date Particular Price Paid amount Balance 1-11-…. Goods purchased as 995.00 500.00 495.00 per bill No. An early remittance is highly solicited. Rajesh Trading Co.,Model 108 : Second letter asking payment Gram: RAJESH Phone : 2435 RAJESH TRADING COMPANY BSPATIL 93
  • 94. Mansion Street, Brooke Bond Layout, Jabalpur. st 21 December, 2002M/s. Prakash Co. Ltd.,Bazaai Street,Mumbai – 400001Dear Sirs, Ref. : Statement of Account No. 749/Bom dt. 6th Dec. 2002I wrote to you on 9th December, 2002 on the account mentioned above. But I have heard noting from youso far. Perhaps the delay is due to certain unexpected reasons or the reminder letter might not havereached you. therefore, I enclose again a duplicate copy of the statement of account and request you tomake an early payment.Thanking you, Yours sincerely For Rajesh Trading Co.Encl : as aboveModel 109 : Third letter asking payment Gram : Rajesh Phone : 2435 RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Jabalpur. 6th January, 2002M/s. Prakash & Co. Ltd.Bazaar Street,Mumbai – 400001Dear Sirs, Ref.: Statement of Account No. 479/Bom of 6th Dec., 2002 It is surprising that you neither replied nor sent a cheque for Rs. 495/- response to my tworeminders, dated 16th Dec. and 21st Dec 2002. Please send your cheque for full amount without furtherdelay. The account could not be closed because of this nonpayment. Therefore, remit the same on orbefore the 15th January, 2003. Yours sincerely For Rajesh Trading Co. …………………………..Model : 110 : Fourth letter threatening legal action Gram : Rajesh Phone : 2435 RAJESH TRADING COMPANY BSPATIL 94
  • 95. Mansion Street, Brooke Bond Layout, Jabalpur. nd 22 January, 2003M/s. Prakash & Co.Bazaar Street,Mumbai. 400001Dear Sirs, My reminders of 16th December 2002, 21st December, 2002 and 6th January, 2003, regarding thelong outstanding account has not been attended by you. I very much regret this state of affairs. I nowinform you that unless you remit the amount of Rs. 495/- in full, within January. I will be compelled toplace the mater in the hands of my lawyers. Hope that you will not give a chance for unpleasant state of Affairs Yours sincerely For Rajesh Trading Co. …………………………Model 111 : Reply to letter No. 109 Prakash & Company Ltd. Bazaar Street, Mumbai – 400001 10th Jan. 2002M/s. Rajesh Trading Co.,Mansion Street,Brooke Bond Layout,Jabalpur.Dear Sirs, I have received your reminders for the remittance of Rs. 495/- due to you. I feel very sorry to inform you that more than 75% of the goods are lying in the stock. The presentmarket is also dull. There were days without a sale even for Re. 1.00. Under these circumstances, I shall begrateful to you if you will please allow me two months time and within that period I will clear my dues. I hope that you will agree to this. Yours sincerely, For Prakash & Co. ……………………Model 112 : Reply to letter No. 100 Gram : RAJESH BSPATIL 95
  • 96. Phone : 2435 RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Jabalpur. 20th January, 2002M/s. Prakash & Co.Bazaar Street,Mumbai. 400001Dear Sirs, Received your letter of 10th January, 2002 and I understand the position shown by you. hence I havedecided to allow postponement of the payment up to the 10th of March, 2002. I also enclose a bill ofExchange for Rs. 495 top be returned duly signed by you, maturing on 10th March, 2002. Your request fortwo months time will be based on the acceptance of the Bill of Exchange. Yours sincerely, For Rajesh Trading Co., …………………………..Model 113 : Letter offering advantages of cash discount CENTRAL CYCLE MART Cantonment, Jabalpur, th 6 July, 2003M/s. Ramu Cycle Shop,Wright Town,Jabalpur.Dear Sirs, You are a regular customer of ours for a long time and you have been taking advantage of the cashdiscount of 1% in all payments made within the specified time for payment. You never fail to enjoy thediscount. But not a bill for Rs. 500/- is due to be paid by you. you can avail yourself of the discount of 1%if you make your remittance on or before 10th July, 2002. Yours sincerely For Central Cycle Mart …………………………Model 114 : Letter enclosing a cheque in full settlement CARBOLIC CO. Chandni Chowk, Delhi – 110006 6th Dec. 2002The Central Stores,Agra Road, BSPATIL 96
  • 97. Agra. 282002Dear Sirs, With reference to your two reminders of 15th November and 1st December, 2002. I am very sorry tostate that the payment of your bill could not be made because of the long absence of our accountant. Nowthe accountant has resumed his duties. I enclose a cheque for Rs. 340/- in full payment of your bill. I regret the delay in setting the accounts and hope you will not mind it. Yours faithfully For Carbolie Co.Model 115 : Collection combined sales letter Poineer Engineering Company P.B. No. 3655 Mumbai – 400028 Dated…………….M/s. Rajesh Agency,Napier Town,Agra – 282010Sirs, Our books show that a sum of Rs. 150 is due from you since a couple of months. Will you be kindenough to look into the matter and remit the same by return of post? The prices of the automobile goods are steadily increasing. From the records it is found that youhave not purchased anything for the last two months. By studying the market please reap a good profit. Yours sincerely, For Poineer Engineering …………………………….Model 116 : extension allowed MOHAN MANUFACTURING COMPANY Cantonment, Jabalpur. 6th Dec. 2003M/s. Rajesh Tradings,Wright Town,Bhopal.Dear Sirs, We have your letter of 1st December, 2003 conveying the sad state of affairs you are facing now. Inview of the circumstances stated in your letter, we have decided to extend to you a month’s time to settleour accounts. By extending the period for payment, you lose the cash discount of 2% of payments madestrictly within 30 days. Hope without writing a reminder, you will settle the dues on or before the 6th January, 2004. Yours sincerely, BSPATIL 97
  • 98. For Mohan Manufacturing Co.,Model 117 : Collection letter BABA MEDICAL STORES Bazaar Street, Mumbai – 400001 6th Dec. 2002The Central Medical ShopJabalpur.Dear Sirs, May we draw your attention to the sum of Rs. 250 due from you since last two months, against theBill No. 675 of 1st Oct., 2003. Perhaps you might have overlooked the account. Please refer to our bill andarrange early payment before the year ending audit by the Head Office. Yours Sincerely, For Baba Medical Stores. …………………………….Model 118 : Second collection letter BABA MEDICAL STORES Bazaar Street, Mumbai – 400001 21st Jan. 2003The Central Medical ShopJabalpur.Dear Sirs,In response to our letter of 6th Dec. 2002, we have heard nothing from you. In the letter we asked you tosettle the amount due to us, amounting to Rs. 250. We presume that the letter might not have reached you.however, a statement of account is enclosed for ready reference. Please arrange for the remittance,immediately as the departmental audit is going out. Yours sincerely, For Baba Medical Stores ……………………………Model 119 : Third collection letter BABA MEDICAL STORES Bazaar Street, Mumbai – 400001 10th Jan. 2004The Central Medical ShopJabalpur.Dear Sirs, No. reply has been received from your end to the previous two reminders of 6th and 21st December2003, requesting you to remit the amount Rs. 250 against Bill No. 654 of 1st October, 2003. BSPATIL 98
  • 99. We are unable to give any more time for settlement of this small amount. Though the amount issmall we can’t afford to write it off, since drops of water make an ocean. Therefore, we insist that youshould make the remittance by return of post, failing which we will be compelied to take further steps. Yours sincerely, For Baba Medical Stores. …………………………….Model 120 : Fourth collection letter BABA MEDICAL STORES Bazaar Street, Mumbai – 400001 30th Jan. 2004The Central Medical ShopJabalpur.Dear Sirs, We have heard nothing from you against three reminders sent to you. now the stage has come toinform you that, if you do not settle the account within 10 days from the date of this letter, we will beforced to take further steps by placing the dealings in the hands of legal agents, without further intimationto you. We fully hope that you will not invite this situation unnecessarily. Yours faithfully For Baba Medical Stores …………………………….Model 121 : Settlement of accounts RAJESH GENERAL STORES Cantoment, Cochin – 2 5th Dec. 2003M/s. Mahesh Stores,AlleppyDear Sirs, We have received your letter of 29th November, 2003 and the statement of accounts for Rs. 475.00against the Bill No. 918 of the 1st of November, 2003. Please excuse us for overlooking the invoice owingto the stock taking rush. However, a cheque for Rs. 475/- is enclosed, in full settlement of our account. Yours sincerely For Rajesh General Stores. ……………………………….Model 122 : Collection reminder RAJESH & BROTHERS Cantonment, Jabalpur, BSPATIL 99
  • 100. 6th Dec. 2003The Punjab Trading Company,BhopalDear Sirs, We are at a loss ot understand why we did not hear from you regarding the payment against our BillNo. 410 of 1st October, 2003, ever after three reminders. We are sure that you are making efforts to settle our accounts. We have enclosed a post-paidenvelope for your convenience. Yours sincerely, For Rajesh & Brothers BSPATIL 100
  • 101. Chapter XV MAKING PAYMENTS When goods are ordered with a seller, the execution of orders is carried out. The goods are sent asper the mode of payment agreed upon by the seller and the buyer. Along with the goods a delivery note issent to verify the goods. Different types of payments are made against the purchase, such as cash ondelivery, credit for certain period, etc. Cheque and Bill of exchange are popular ways of settling thetransactions. We shall study the letters in which the settlement of accounts is handled.Model 123 : Enclosing a bill for acceptance DEVILAL AND COMPANY Bank of Baroda Building Fort, Mumbai 9th April, 2002Messers Devichand Lal Ltd.216, Calvary Road,Bangalore – 560 014Dear Sir, According to our agreement, we have drawn this day upon you bill for Rs. 4,300/- at two monthsin settlement of our invoice No. 122 dated the 28th Feb. 2002. Please accept the bill enclosed and return it as early as possible. Thanking you Yours sincerely For Devilal & Co. …………………..Encl : a billModel 124 : Receipts of goods and remittance by cheque B.K. CORPORATION Kolkata – 700013 14th March……..Messrs. Mitra & Company1237, Post Office Line,Mumbai – 400001Dear Sir, The books have been received in good condition. We are satisfied with the books. In settlement ofthe invoice No. 1274 dated the 9th of March 2002 we enclose a demand draft for Rs. 3,500.00 (RupeeThree thousand and five hundred only) which may please be acknowledged. Thanking you Yours sincerely For B.K. Corporation ……………………….Encl : as above BSPATIL 101
  • 102. Model 125 : Payment of invoiceSimmson & sons148, Lyons RangeKolkata.18th March, 2002Messrs. Martin & Sons.Dalal Street,Fort, Mumbai.Dear Sirs, We thank you for your kind letter dated 16th March, 2002 enclosing a cheque for Rs. 150.00 (Rs.One hundred and fifty only) against the remittance of our invoice No. 512 dated 10% March, 2002. We are further glad to not that the goods have reached you in good condition. We hope to be favoured by your further orders, Thanking you Yours sincerely For Simmson & Sons.Model 126 : Receipt of goods and payment STEWART & COMPANY 127, Regal Building, New Delhi. 5th April, ………………Messrs Narain & companyNahar HouseDelhi.Dear Sirs, We thank you very much for the prompt delivery of our recent order, and this is to inform you thatthe goods arrived here in good condition as per specification.In settlement of the amount of your invoice No. 547 of 21st March, we enclose a cheque for Rs. 475.75 (Rs.Four hundred seventy-five and paise seventy five only). Please acknowledge the receipt and credit us withthe amount.Thanking you. Yours sincerely, For Stewart & CompanyEncl : As above BSPATIL 102
  • 103. Model 127 : Part Payment RAJESH TUBES LTD. Bank Buildings Bhandra, Ahmedabad 20th March………Messrs Jeewanlal Ltd.1237, Post Office Road,MumbaiDear Sirs, We have pleasure in sending herewith a cheque for Rs. 300 (Rs. Three hundred only) in partpayment of your Invoice No. 546 of 13th March for Rs. 876.00. the remaining amount of the invoice will besent to you within a fortnight. Kindly acknowledge.Thanking you Yours Truly For Rajesh Tubes Ltd.Encl: as above.Model 128 : Correction of invoice and payment of bill Atland Private Ltd. Espalnade Road, Fort, Mumbai. 16th April, 2002The Associated Co. Ltd.,Narain Road,MumbaiDear Sirs, I hereby acknowledge the receipt of the goods which arrived here in an excellent condition. If haveto point out that there is an error in the bill’s totaling. The correct amount of the invoice comes to Rs.865.00 and not Rs. 885.00 which may please be corrected at your end. However, a cheque for Rs. 865 (Rupees eight hundred and sixty-five) is enclosed against thepayment of your Bill No. 9836 dated 4th April 2002. Please send an acknowledgment with a stampedreceipt.Thanking you Yours sincerely, For Atland Private Ltd., ………………………….. BSPATIL 103
  • 104. Model 129 : Letter asking payments VOHRA BROTHERS & CO., LTD. Palace Building, Mumbai – 400002 30th April 2002Messrs. Champaklal & Co.Western Avenue,New Delhi.Sirs, I have been obliged to report to my Directors that your account is still unsettled and they haveasked me to explain the circumstances. I have been given permission to hold the mater open till 9th May2002, but if no remittance is received from you by that date, I regret to inform you that it will have to behanded over to the legal department. Your faithfully, For Vohra Bros. & Co. Ltd. ……………………………. BSPATIL 104
  • 105. Chapter XVI APPLICATION FOR SITUATIONDrafting an application for employment is important. A letter of application is like a sales letter, becausethrough letters, the applicant tries to sell his services. Everyone has to work for the livelihood. So writingletters of application for a job suitable to one’s own qualifications, in order to sell one’s services tosomeone in the market for the best price available, is very important. Nowadays, an applicant must realizethe severe competitions. Therefore, one should take proper care in writing an application in response to anadvertisement. If an applicant fails to catch the attention of the employer through his application, it willfind a place only in the waste paper basket.Structure of the application 1. Address of the applicant and date. 2. The name and full address of the employer or the concern. 3. Salutation. 4. Body of the application – Introductory para. 5. Details of the applicant in para or paras 6. Concluding para 7. Complimentary close 8. Enclosures 9. Signature. BIO – DATA An advertiser, sometimes, asks the applicants to enclose their complete biodata. The tendency atpresent is to prepare a biodata of the applicant and send it alongwith a covering letter. Biodata is astatement showing the name of the applicant, his age, qualifications, experience, reference etc. Such astatement is called “data sheet”, “resume” or “Personal history”. Some organizations have their ownprescribed forms designed to their needs. The prescribed application form has to be completed by theapplicants and send back to the organizations. If you are asked to prepare a biodata, then it should contain: (1) Name and address of the applicant,(2) Age and qualifications, (3) Experiences (4) References (5) Hobbies etc. The biodata is sent along with acovering letter.See the illustration No. 130 BIO – DATA 1. Name R.T. Govind Rao 2. Address: Plot No. 64, Nad Post, Visakapatnam, 530 009 (Phone No. 535372) 3. Age 32 years (10.10.1970) 4. Mother Tongue Telugu 5. Height 5’6” 6. Marital Status Unmarried 7. Qualification: 1. S.S.I.C. Secondary Board (Andhra) 85% 1986 BSPATIL 105
  • 106. 2. Higher Secondary Secondary Board (Andhra) 84% 1988 3. B.Sc. (Computers) Andhra University 85% 1991 st 4. MBA 1 Class 1994 Indian Institute of Management, Mumbai 8. Experience: 1. Marketing Side: Worked as a Sales Manager for Applied Electronics Ltd., Mumbai-400 018 from August 1994 to Sept. 1995 2. Finance Manager: Now working as a Finance Manager Computers (P) Ltd. Mumbai. 9. Hobbies: I was a cricked player during my college days. 10. Language known: Speak Read Write English √ √ √ Hindi √ √ √ Telugu √ √ √ Tamil √ √ √ 11. Reference: (1) Prof. Santosh Kumar Professor of Commerce, G.S. College of Commerce, Visakapatnam. 530 018 (2) Mr. Mohan Managing Director Applied Electronics Ltd. Mumbai – 400 018The biodata is normally sent along with a covering letter. The model of covering letter is given below:Sir,With reference to the advertisement in Indian Express Daily of 10th July, inviting applications for the post ofFinance Manager, I am sending any biodata for your consideration.Thanking you, Yours faithfullyModel 131: Application for the post of Professor 293, C.M.S. Compound North Civil Lines Jabalpur (M.P.) 14th April, 2002To,The PrincipalG.S. College of Arts & Commerce, BSPATIL 106
  • 107. Bhopal.Sir,Sub,: Application for the post of Professor (Com.)With reference to the advertisement in “The Indian Express” dated the 12th April 2002, I would like to applyfor the post of Commerce Professor in your college. Please let me state the biodata of mine herewith: Name: R.B. Otwani Age: Forty-one Community: Hindu Place of Birth: Gwalior Education: 1. Passed S.S.I.C. in first class from the M.P. Board in 1979 2. Passed M.Com. in first class in the year 1985 from Jabalpur University. 3. Passed L.L.B. in first class from Jabalpur University in 1988 Experience: Since, 1988 I have been working as a Lecturer in Commerce in St. Thomas College, Gwalior. I have been teaching Mercantile Law, business English, Accountancy and Business Organisation to the Degree classes and Costing to the M.Com. classes. Extra curricular: I am Government approved referee for basked – ball and authorized Activities: M.P. Goalkeeper in football. Testimonials: I enclose true copies of my documents. Originals will be shown to you at the time of interview. Salary Expected: Willing to accept your scale of pay to found in the advertisement.Thanking you. Yours faithfully R.B. OtwaniModel 132: Application for the post of an accountant 246, Bus stand, Virudhnagar, 23 March 2002 rdTo,The Secretary,Devanga Enterprises,Madurai.Sir,Ref.: Application for the post of an Accountant. With reference to your advertisement in “The Indian Express” of 20th March, 2002. I would like tooffer my candidature for the post of an Accountant. I passed my B.Com. Examination from Madurai University in first class in the year 1996. I alsopassed the Account Test conducted by the Government of Tamil Nadu in February 1999. BSPATIL 107
  • 108. I worked as an Accountant for a year in Messrs. Thomas & Co. Virudhnagar and I had to leave thepost as the Branch was closed down recently. I have good knowledge of accounts and I can prepare finalaccounts very easily. My age at present is 32 and I possess good spirit and sound health. I am enclosing copies of my documents for your ready reference. The originals will be madeavailable as and when required. I am willing to accept any reasonable salary, subject to a minimum of Rs. 3,000/- per month. I assure you of earnest and enthusiastic work. If I am appointed, I promise to give the utmostsatisfaction to my superiors.Thanking you. Yours faithfully K.P. Nair.Model 133 : Application for the post of a Stenographer 345, Street Road, Chennai – 5 th 14 March, 2002To,The Manager,John & Co.Chennai – 600 018Dear Sir, Having heard from your Accountant that there is a vacancy for a Stenographer in your office. Iwould like to apply for the same. I state below my qualifications and experiences. I passed the B.Com. Examination of the Madras University in the Year 1985. I have also passed theHigher Grade Technical Examination in Shorthand and Type writing, conducted by the Government ofTamil Nadu. I have been working as P.A. to the Principal, G.S. College of Arts, Chennai for the last 4 yearsspecially assisting him in the administration side. At present I am 29 years old. I am enclosing copies of certificates from the Principal of the College, where I studied and from thePrincipal under whom I am working now. I also enclose the certificates of my qualifications for your readyreference. In view of my qualifications and experience, I fully hope to get a chance to work in your concern. Ishall be very grateful to you, if you consider my application and favour me with on early reply. Thanking you. Yours faithfully R.S. John.Encl: As aboveModel 134: Application for the post of Accounts Manager Udit Kumar 48, Ansari Park, BSPATIL 108
  • 109. Naval Base, Vizag – 530 014 16th May, 2002ToThe Manager,Kamal Motors,Vizag – 530 003Sir, In response to your advertisement in Times of India of 10th May, I submit my application for thepost of Accounts Manager in your establishment. Please find the biodata enclosed herein. I am confident that I can take responsibilities of your company’s accounts and maintain booksproperly. I shall be obliged if I am given a convenient time for interview. I shall bring my certificates andtestimonials at the time of interview. If I am given a chance I assure you that you would find me delight and honest in the execution ofduties.Thanking you Yours faithfullyEncl: as above BIO - DATA Name : Udit Kumar Date of Birth : 10th Nov. 1975 Father’s Name : Velu Vinayagam Marital Status : Unmarried Address : 48, Ansari Park, Naval Base, Vizag – 530014 Educational Qualification : Passed B.Com., Examination from Andhra University in First Class Passed M.Com. from Andhra University in First Class (79% of marks) Other Qualification : Passed type writing in English (Speed 45 wpm) Passed PGDCA Experience : Worked as an Accountant for 4 years in a private company Hobbies : Playing chess and cricket Reference : (1) Mr. Chandran, LL.B., Advocate Anarkali Avenue, BSPATIL 109
  • 110. Guntur. (2) Mr. V.M. Pandey, CA College Road, Vizag – 530005 Language Known : English and Hindi Salary Expected : Negotiable.Model 135 : Application for the post of a typist 126, Karamchand, Nagpur, 22nd March 2002.ToThe Principal,Government Arts College,Jabalpur. Sub. : Application for the post of a typist.Sir, In response to your advertisement in “The Hindu” dated the 19th March, 2002. I submit myapplication for the post of a typist in your office. I passed my S.S.I.C. Examination in second class in 1998. I also passed the Lower GradeGovernment Type Writing Examination in the year 1999. At present I am able to type forty words perminute. Now I am preparing to appear for the Higher Grade Examination. I have a year’s experience as a typist in a private publishing house at Nagpur, I am enclosing copiesof testimonials for your perusal. I shall produce the original certificates when called for. I am 25 years old and possess sound health and a good physique. I am good at all outdoor games and cricket is my favourite game. If I am appointed, I shall discharge my duties to the entire satisfaction of my superiors and higherauthorities.Thanking you. Yours faithfully, K.P. Babu.Encl : as aboveModel 136 : Application for the post of a Mechanical Engineer 253, C.M.S. Compound North Civil Line, Jabalpur. 30th April, 2002The following Director,Indian Machines Ltd.,Sir, On going through “The Indian Express” of today, I learn that your factory at Jabalpur has vacanciesfor Mechanical Engineers. Being a person with adequate qualifications and enough experience, I offermyself as a candidate for one of the posts. BSPATIL 110
  • 111. I took my degree in Mechanical Engineering from Jabalpur University in first class in the year 1995.I have been working as a Garage-in-charge of Madhya Pradesh Transport Corporation, Jabalpur, since1996. I have considerable experience in the Mechanical side and am more interested in assembling andfitting section of a factory. A am aged 30 at present and posses sound health. Here I am drawing a salary of Rs. 4,000/- per month. I am enclosing all true copies of mydocuments for your kind perusal. I shall be glad to be called for an interview to discuss future details.Thanking you. Yours faithfully, R.K. Jain.Model 137 : Appointment letter XY CompanyNo. Dated……………….Mr. ………………………. You are hereby appointed as a …………… in the grade Rs……….. with other allowances according tothe applicable rules of this company. You will be on probation for a period of two years, during which your services are liable to beterminated, without any reason, on a month’s notice. You should report for duty on ……………. Yours faithfully For Manager. ………………………Model 138 : Letter of interview ………………………. ………………………. Dated…………………Dear Sirs, With reference to your application dated …… for the post of ………... in our firm, you are herebyrequested to present yourself for a personal interview at 10 A.M. on …... Kindly bring all your original certificates and testimonials in support of your application.No T.A. and D.A. will be admissible. Yours faithfully …………………Model 139 : Asking for reference Dated: ……………To,…………………………………… BSPATIL 111
  • 112. Sir,Mr. …………………. Whom I am considering for employment as a clerk in my personal office at home hasgiven your name as a reference.Would you be kind enough to let me know your opinion of his character, efficiency and ability to get alongwith the work. I shall appreciate any information that you give about him.Thanking you. Yours faithfully, …………………Model 140 : Response to a reference Dated……………To,………………………………………………Sir, I am happy to have the opportunity of answering your letter dated……….. about Mr. ……………… Heis an excellent personal assistant, who is accurate, intelligent and sincere. Mr. …………… came to us about four years ago and took to the appointment as a P.A. to me. Hewas helping me in the execution of all my work with cheer and efficiency. I am really sorry to part with him. Yours truly …………………Model 141 : Report to an enquiry Dated……………….To,……………………..…………………….Sir, I am happy to give this reference about Mr…….. He has been working wioth us for the last six year.During his service period, I have found him to be an earnest, enthusiastic and hard worker. His behaviourhas impressed me. He is cooperative in nature. I am confidently recommending him for employment and wish him best of luck. Yours faithfully, General Manager …………………Model 142: Character Certificate Date…………………….. TO WHOM IT MAY CONCERN With great pleasure I recommend Mr. …………. To anyone whoever wants an intelligent andenthusiastic worker. He was my student for the last six years and I have known him personality. He hasbeen paced first in the Merit list of B.Com. and stood second in the B.Com. Examination. BSPATIL 112
  • 113. He is an intelligent young man, who feels a thirst for knowledge. I am sure that he can be a boon toany employer. I wish him all success. PrincipalModel 144 : Application for the post of salesman 1234, Street line Madurai th 25 January, 2002To,Post Box No. BC 1470C/o The Times of IndiaChennai.Sir, In response to your advertisement in the “Times of India” of 10th Jan. 2002 inviting application. Iwould like to offer myself as a candidate for the post of a salesman. After passing my Matriculation Examination in the year 1992, I took up the appointment of asalesman in Messrs. Ram and Sons, Salem, from 1993 to 2000. I felt the service became of the closure ofthe firm. My age at present is 24, and I posses sound health and good physique. I enclose true copies of my educational qualification and other testimonials. A photograph isduplicate is enclosed as desired. I also posses light vehicle driving licence since 1995. Thanking you Yours faithfully K.P. GovindaEncl : as above Advertisement Firms Government offices, Colleges, etc. make advertisements when they require persons to beappointed. The designation, qualification, experience, salary, age, etc., are pre-determined. When all thesepre-requisites are decided, the next job comes to advertise the needs in a newspaper thus invitingapplications for the post. Alongwith the information, the last date for the receipt of the applications,whether travelling expenses to be met by the applicant or employer etc. are advertised so as to give allcorrect information. After deciding all the connected matters; a copy of the advertisement is handed overto the newspaper for publication.Model 145: University of Madurai. Wanted Research Assistants in the Department of Commerce in Madurai University on a fixed salaryof Rs. 3,000 per month. BSPATIL 113
  • 114. Qualification M.Com. with more than 55% of marks with aptitude for research. Age should be round 25.Candidates with research experience are preferred. Applications stating age, qualification, experience, etcshould reach the undersigned on or before 1st July, 2002. Candidates will have to appear before theInterview Board at their own expense.20th June 2002 REGISTRARModel 146 : Requires a Chartered Accountant Mahesh & Sons Nagercoil – 2 Qualification : C.A. Age : 35 Experience: 5 years Salary : Rs. 15,000 plus D.A. (as per Co’s rules) Apply with full details on or before 22nd Aug. Those who draw a salary less than Rs. 10,000 neednot apply.Negercoil12th Aug., 2001 General ManagerModel 147 : Testimonial Vasan Textiles limited Industrial Estate, Bilaspur – 484001. TO WHOM IT MAY CONCERN Mr. Sunder has been working with us for the last seven years. He is familiar with all aspects ofoffice work and has brought dignity and distinction to every seat he has occupied. He is a man of integrity and dynamism. He is sure to prove an asset to any organisation, he joins.He has been a very sincere and loyal employee during the period he was in our employment. He is verywilling and hard – worker. We wish him all successes in future. ManagerDated the ……………Model 148 : Character Certificate G.S. COLLEGE OF COMMERCE AND ECONOMICS Wright Town, Jabalpur Date………….I have pleaseur in certifying the excellent character of Mr. Nikhil Sunder, a brilliant student of this college.He studied in our college for three years from ………… to …….. and completed his B.Com. in First Division BSPATIL 114
  • 115. with Advanced Accountancy and Income Tax as his main subject. During the entire period of his college studies he showed academic merit and keen interest inextra-circular activities too. He was a member of college Planning Forum. He represented the college invarious inter college debating functions. He was the chairman of the student’s union during….. Mr Nikhil Sunder has the qualities of leadership. He is young, enthusiastic and industrious anddeserves every success in life.. I wish him all success.PrincipalModel 149 : Testimonial for a salesman S Chand and CompanyRam Nagar,New Delhi – 110 055 TO WHOMSOEVER IT MAY CONCERN This is to certify that Mr. Ganesh S/o. Velu Naik, a resident of Vizag was working as a salesmanwith us for the last five years. We found him to be hard working. He carried out all his duties to our best satisfaction. We neverhad a chance to complain against his behaviour. He is an honest and loyal person. We wish him all successes in his future career.Dated…………. ManagerModel 150: Testimonial RAM AND COMPANY Anna Nagar Chennai – 600 040 TO WHOM IT MAY CONCERN This is to certify that Mr. Gopal S/o Raj Pant, resident of Chennai has been working as a P.A. to mefor the last three years. During the service with us, we found him to be very painstaking and hard working youngman. Hecarried out all his duties and responsibilities to the best satisfactions of his superiors. He has been very punctual and regular in his duties. He is very honest and loyal in his dealings. Weregret that he is leaving us. We wish him success in his career.Dated the …………… ManagerModel 151 : Favourable reply KAPOOR CHAND & COMPANY 75, Park Street, Kolkata 21st August……… BSPATIL 115
  • 116. Messrs. Hiralal & Sons.Mumbai.Dear Sirs, We thank you for your letter of 13th August asking for a reference of Mr. Krishnan. Mr. Krishnan has been in our employment as an Assistant Accountant for about three years. He hasgiven a good account of himself by his efficient and methodical work and regular attendance. He ishardworking, painstaking and strictly honest in his dealings. From that we have seen of him; we are in aposition to say that he bears a good moral character. He is seeking employment else where because we cannot hold out any better prospect to him bysuperseding the claims of his seniors. Yours sincerely For Kapoor Chand & Co.Model 152 : Character certificateMohanlal SonsNational Highway.Delhi.Dated………….To whom it may concern Mr. Ram Manohar, B.Com. was working in our firm for about five years as Assistant Accountant. Heis a hard and willing worker and has always shown commendable persistence in making his services morevaluable. The firm will be sorry to lose him but wishes to better his prospects. We cordially recommend himto anyone who is looking for a smart young man willing and able to prove his worth. Mohanlal SonsModel 155 : Reply to an enquiryMahesh ElectricalsP.O. Box No. 278,Jabalpur.Dated…………Messrs Ram & Company.BangaloreDear Sirs, Referring to your enquiry of 20th August, we are pleased to inform you that Mr. B.K. Ramu, B.Com.was working in our firm for the last five years as Salesman. He has always been found to be exceedingly BSPATIL 116
  • 117. well-behaved young man, industrious and intelligent. He was relieved of his duties owing to generalretrenchment in the sales department.We wish him all success in future career. Yours sincerely, For Mahesh Electricals BSPATIL 117
  • 118. Chapter XVII BANKING LETTERS Nowdays, it is very essential for the students of commerce as well as for the business people toknow the functions of banks and understand the services that can be had of banks.The main functions of the banking system are accepting deposits and granting loans. Let us first discussthe system of deposits. We are concerned with correspondence and, therefore, we describe less aboutbanks. However, we can discuss them in short, just to have an idea. (a) Fixed deposit : This type of deposits are made for a certain fixed period. When the period of deposit increases the rate of interest will also increase, considerably. Here the banker can utilize such deposits within the period fixed and he will have no fear of meeting the demand before the due date. Because of this reason, the rate of interest is more than the other types of deposits. (b) Savings account : This is type of savings by the public. The interest rate is fixed and less than the rate for fixed deposits. From the savings account the customer can draw money whenever he requires, as per rules of the bank. (c) Current account: This is a bank account from which withdrawals may be made through cheques at any time without notice. The bank usually pays only nominal interest on current accounts. One can draw cheques as long as he has funds to his credit. When a current account is opened a cheque book is also issued to the party along with the passbook.The relationship between a banker and a customer is that of debtor and a creditor. The banker is both aborrower and a lender. When a loan is granted, it is made on tangible security. Persons of the higheststanding will be allowed loans against personal security undertakings to repay.We are mainly concerned with the current account system, by which businessmen have their dealings.There may be complaints from the parties to the bankers on various aspects. But correspondence willrectify the problems. Moreover, letters may be written for different types of accounts, instructions,deposits, loans, withdrawals, overdrafts, collection of dividends, interest, insurance premium etc. Bankersgenerally keep printed forms and tick the items which is applicable in order to save time.The essential characteristics of banking correspondence are: (a) Briefness (b) Clearness (c) Completeness (d) Accuracy (e) Confidence (f) Tactfulness and courtesyTypes of Bank CorrespondenceBank correspondence can be broadly classified into: 1. Letters between a bank and its customers 2. Letters between from H.O. to its branches and vice versa. 3. Letters from one bank to another. BSPATIL 118
  • 119. Model 154 : Requesting a Banker to open an account NIKHIL AND BROTHERS Maniram Street Valsaravakkam Chennai – 600 087The Manager,Vijay Bank,Vadapalani,Chennai.Dear Sir,I am desirous of opening a Current Account with you. I am sending the necessary form duly filed in withspecimen signatures and a letter of introduction from one of your customers. Mr. Udhith Kumar Narayanan.An amount of Rs. 10,000 is also sent as initial deposit through the bearer.Kindly send a cheque, containing 25 leaves. Passbook and Pay – in – slip book.Thanking you, Yours faithfully,Model 155 : Asking a party to remit the amount overdrawn SUNDER BANK Valsaravakkam, Chennai – 600 087 10th May, 2002Mr. Udith Kumar,Uma Electronics Ltd.Chennai – 600 087Dear Sir,We wish to inform you that a cheque for Rs. 6,500 drawn by you on us was presented for payments today.Although the balance to the credit of your account on which it was drawn was Rs. 6,000 only, we decidedto honour it. Perhaps it was due to over sight at your end. By this payment of Rs. 6,500 your account isoverdrawn to the extent of Rs. 500. Our normal practice is to insist prior arrangement for overdraftfacilities. We would request you to settle the overdrawn amount and maintain sufficient balance in yearaccount to meet such contingencies. We assure you of our best cooperation at all times. Yours sincerelyModel 156 : Letter requesting to remit the amount overdrawn SUNDER BANK Valsaravakkam Chennai – 600 087 BSPATIL 119
  • 120. 14th May, 2002Mr. Nikhil,Station Road,Chrompet,Chennai 600 044Dear Sir,You would appreciate our honouring your cheque bearing No. 4785 of 6th May drawn in favour of M/s.Ganesh Stores. As a result of this payment your account is overdrawn to the extent of Rs. 500. I requestyou to deposit an appropriate amount to remove this small debit in your account within a week. Petty over drawings have put us great inconveniences. It also goes against rules. There are numberof ways in which the bank can assist you. if you have a recurring need of finance, we have a simpleprovision of allowing you an over-draft facility on a half yearly basis. There are certain simple conditionsthat are to be fulfilled. I request you to avail to the facility offered. You may call on us during workinghours any day.Thanking you Yours sincerelyModel 157 : Letter asking for overdraft KALA STORE M.G. Street, Coimbatore – 641018 10th May, 2002The ManagerCanara BankCoimbatore. Overdraft We are happy to inform you that our business is progressing steadily since its establishment. Wehave been able to achieve this mainly because of wide range of consumers goods are readily available inlarge numbers in our store. There is a good demand for all types of consumer goods. We wish to add otherlines of goods also. Thus we expect a further rise in our turnover. Our present supplies have expressedtheir inability to grant credit for a period of more than 45 days. We therefore, approach you with a request of overdraft facility for a sum of Rs. 1,00,000 for aperiod of three months. This will meet our present need. We can give personal guarantee as a security forthe overdraft. Copies of audited financial statements are enclosed. All early reply will facilitate us to send orders to our supplies and having our stocks in time.Thanking you Yours sincerely.Model 158 : Reply to a customer of bank Canara Bank Coimbatore, 16th May, 2002The Manager BSPATIL 120
  • 121. Kala StreetM.G. Street,Coimbatore.Dear Sir, Overdraft of Rs. 1,00,000We are happy to note the growth of your business within a short period of time. We take pleasure inhelping our customers.General practice is to sanction overdraft against collateral securities. We suggest you to provide somecollateral security, such as shop, building, deed of any investments etc. If it is not possible, as a specialcase, we can also consider guarantee from reputable person. It is a matter of general policy of the banks. We assure you of our best cooperation at all times.Yours sincerelyModel 159 : Dishonoured cheque RAJESH BANK LTD. Cantonment Agra – 282002 24th Nov. 2002Mr. H.S. Dubey,P.S.H. College,Agra 282 011Dear Sir, I regret to inform you that a cheque bearing No. PR 32435 dated 10th Nov. issued by you in favourof Messrs. Rajahopal & Sons for Rs. 1,800/- was accepted to make the payment, but the same wasreturned unpaid for want of sufficient funds in your account. Perhaps you might have forgotten to verigy the balance before the cheque was issued. We do notwish to return the cheque of our customers for lack of funds. I, therefore, request you to maintain theamount sufficient to meet all the chequ, issued by you in future. Yours faithfully For Rajesh Bank Limited, Agra AgentModel 160: Reply to drawer (dishonoured cheque) RAJESH BANK LTD. Gwalior rd 23 Sept. 2002The Bharat & Company,Gwalior.Sirs, Please refer our letter dated 22nd Sept. we regret to inform you that the cheque was post dated.Then how could it be possible for us to encash the cheque, drawn at post date. BSPATIL 121
  • 122. You may perhaps be unaware of this fac. Please correct the date and return it for encashment by us. Please be careful in making cheques. Yours faithfully Agent.Model 161 : Dishonoured cheque BHARAT & COMPANY Gwalior 25 Sept…………. thThe Agent,Rajesh Bank Ltd.,Gwalior.Dear Sirs, I am sorry to hear that a cheque bearing No. AB 4567 dated 15th Sept. for Rs. 950.00 in favour ofM/s Jain & Co. was returned to the party unpaid. You may notice that my current account balance is Rs. 2,460.00 as on date. Even then the aforesaidcheque has been dishonoured by you. I request you to let me know the reasons as to why the chequecould not be encashed. Yours faithfully, For Bharat & Co.Model 162: Signature not tallied JAIN & CO. Jabalpur, 22nd Sept. 2002M/s. Sharma Stationers,JabalpurDear Sirs, The enclosed cheque No. 542 dated 15th Sept., 2001 for Rs. 530/- (Rupees Five hundred and thirtyonly) has been returned by the Bank for the following observation: 1. Another signature is required 2. The date is overwritten which requires attestation of the drawer.Therefore, it is requested that the needful corrections may be done in the cheque and sent back to us forencashment. Yours faithfully, For Jain & Co.Model 163 : Requesting to produce the passbook Bank of Jabalpur Jabalpur th 15 Dec. 2001M/s Ramesh & Co.Jabalpur BSPATIL 122
  • 123. Dear Sirs, Since our financial year is ending on 31st Dec. 2001, it is requested that your current accountpassbook may e sent to this office so as to enable us to make the entries. Yours sincerely AgentModel 164 : Sending the passbook RAMESH & CO. Jabalpur th 15 Dec., 2001The Agent,Bank of Jabalpur,Jabalpur.Dear Sir, As you have desired, I am herewith enclosing my pass book to make entries up to date. Yours sincerely, For Ramesh & Co.Model 165 : Requesting for an overdraft Kochi – 682 034 23rd Sept 2001R.K. Jain B.Com.Premchand Shop,The Agent,Cochin Bank,Kochi – 682 003Sir, Sub : Overdraft The Deepavali festival is fast approaching and I am required to stock enough textiles for theseasonal sales. Our suppliers are unable to give us loan for Rs. 25,000.00 at present. In thesecircumstances. I will be grateful to you if you allow us an overdraft for Rs. 25,000/- I will undertake torepay the amount of overdraft on or before 30th Dec. 2001.At present my godown contains goods worth Rs. 45,000. From the Government departments alone Rs.35,000 are due to me.I fully hope to get an overdraft as I desire for which I will be grateful to you. Yours faithfully R.K. JainModel 166 : Sanction of overdraft COCHIN BANK Kochi th 11 Oct., 2002Shri R.K. Jain, BSPATIL 123
  • 124. Premchand Stop,Kochi.Dear Sir, Sub : Overdraft With reference to your application dated 22nd Sept. 2001, for an overdraft, it is informed by ourHead Office that an overdraft of Rs. 10,000/- can be granted to you. Since that is a special grant to you.its repayment must be made on or before 30th Dec. 2001. Our Head Office has also instructed us to obtain a personal guarantee form a customer – who ishaving deposits more than Rs. 9,000/- with us. The necessary forms are enclosed herewith. Yours sincerely AgentModel 167 : Letter regarding stocks & sharesGwalior,22nd Sept. 2001N.P. Dubey,Mayor,The Agent,Johns BankGwaliorDear Sir, I come toknow through some reliable sources that the shares of M/s. Jain & Co. have failed toattract the buyers and they sold our at discounts. Therefore, I request you to purchase 10 shares of Rs. 500/- each with a discount of 10%. Yours sincerely, N.P.DubeyModel 168 : Asking a party to remit the amount Mathew Financials Ujjain 22 Sept. 2001 ndMr. P.N. Choprs,West Street,Ujjain.Sir This is to inform you that your account has been overdrawn to the extent of Rs. 45.00 due to thepayment of Rs. 762.00 to the L.I.C. of India, as per your standing instructions. Please try to remit Rs. 45/- into your account immediately as it is not permitted to any customer tooverdraw without prior arrangement. Yours sincerely, For Mathew Financials BSPATIL 124
  • 125. …………………………Model 169 : Instruction to pay LIC premiums Bopal. nd 22 Sept. 2001R.S. Patel M.A.G.S. CollegeThe Agent,Lakshmi Bank Ltd.Dear Sir, I shall be very grateful to you, if you undertake to remit the annual premiums due to the LifeInsurance Corporation of India every year. Charges incurred in this connection may please be debited tomy account. I assure you, that I shall keep sufficient funds. The details are given below: Policy No. Due date Amount th LIC. 24537 28 Dec. Rs. 231.00 LIC. 245731 28th Dec. Rs. 217.00 th LIC. 453752 10 Dec. Rs. 198.00Thanking you. Yours faithfully R.S. PatelModel 170 : Reply to a request Rajesh Bank Ltd. 123, Civil Lines Chennai 3rd April, 2002Mr. James,The Universal Stores,Chennai.Sir, Thank you for your letter dated the 1st April 2002 in which you have made enquires about thepossibility of securing an overdraft on your current account at this bank. As per our policy it is possible to grant credit facilities only under extraordinary circumstances.Your case, as given in your application does not fall into this category. However, if you call on us, we coulddiscuss the matter in detail. Yours faithfully, For Rajesh Bank Ltd. Agent. BSPATIL 125
  • 126. Model 171 : Circular of a lost draft MODERN BANK LTD. H.O. 16, Park street, Kolkata – 1 th 9 April, 2002The Agents,All BranchesDear SirRef. Bank Draft DF. 4798 for Rs. 2,235.00 dated 19th Dec. 2001 issued from our Delhi Branch office:Our Delhi Branch reported that the above mentioned demand draft issued in favour of Messrs Parry & Sons,Mumbai, has been lost and now the party demands a duplicate one.Therefore, all the branches are advised to exercise caution not to negotiate or accept for collection of theaforesaid draft, if presented, because we have ordered to issue a duplicate draft to the applicant. Theorder has been issued only after a proper scrutiny of the statements of draft clearance.If however, the draft has been paid by any bank, the fact be informed immediately by express telegram. Yours sincerely K.P. Rajan BSPATIL 126
  • 127. Chapter XVIII AGENCY CORRESPONDENCEIn commerce and trade, the middlemen play an important part. Through the help of such middlemen, sellscan be stimulated. Manufactures and merchants dealing with their customers through advertisement maynot have a personal touch with the customers. In order to stimulate sales business abroad or in far offplaces, it becomes necessary to seek the help of agents, because it is not possible for a merchant to openbranches at every place. Instead, an agent can be appointed. Of course, branches are often luxuries andexpensive and consume a good amount of revenue. For example, insurance companies appoint agent withwhose help the work is done.The following are some of the agencies: 1. Commission agent 2. Broker. 3. Commercial traveler 4. Local agentCommission agent He is an agent, who buys or sells on behalf of his principal. He tries to dispose of gods at basepossible rates and terms and receives a commission at fixed rate.Broker He is an agent, who buys or sells on behalf of his principal. He tries to dispose of goods at best possiblerates and terms and receives a commission at fixed rate.Commercial travelerCommercial traveler is a representative of his principal. He travels a specified area and takes orders,making contracts for sale, and keeping a close touch with the needs of the parties. He generally makestours in his area. He gets a salary and allowances. If he does his work of more than one firm, he gets acommission on the basis of orders secured by him. They try to collect orders and send them to theprincipal for execution.He must posses samples of goods to demonstrate. He approaches the buyers with detailers information ofa product. He will have an order book containing printed order forms. By using carbons, he takes ourorders in triplicate. He also takes the signature of the buyer, on the order form itself. The original order issent to the principal, the second copy 9carbon) is sent to the buyer and the third one he keeps in the orderbooks.Local AgentsHe represents one or more firms for a particular area or district. In his area, he approaches the buyer andtries to secure orders. After securing orders, the order is sent to the firm for whom he obtained thedemand. After taking the order, the buyer and the seller come to direct dealing. If any dispute arises, thelocal agent has to render his services. All the expenses met by the agents by way of dealings in theinterest of firm, plus a commission to the agent for his services on the basis of sales introduced by him arepaid by the principal.Establishing an agencyCare must be taken while appointing an d terminating an agent. In the course of agency period manyproblems arise, such as delay in dispatch of goods, agent’s lack of interest in pushing sales delay inpayments etc. In all these cases, letters must be written to agents, who are mainly concerned with them.Agent appointing an agent we come across circular from the principal or the agent himself. BSPATIL 127
  • 128. In appointing agencies the principal must be efficient and has to see many points. First, let us discuss theapplication seeking an agency. When application is sent for agency, the following points must be included. 1. Personal market: The application should clearly state the potentiality of the market, where he can push up the sales of the principal as well as the sales that can be expected. 2. Ability and Experience: He can well state the advantages he can offer to the principal, his business locations, show-rooms, retail shops under his command etc. Besides these, he can also show his personal experience and his ability to push up sales with guarantee. 3. Terms and Conditions : The way in which he intends to deal with the principal and the commission be expects may be informed. 4. Status (Reference) : If he is new to his principal it is always good to give references of tradesmen or bankers so as to enable the principal to enquire of the agent’s credit worthiness and status. 5. Finally expressing a hope for mutual benefits, the applicant can finish his application. What, we have discussed above is a letter or application from an agent to his principal. 1. Potential market: After a careful study, the principal may come to a decision to appoint an agent in a particular area. He may collect statistical data, on the basis of which, he comes to a conclusion, or he may even visit the place to have a spot study. 2. Merit of his product: After having decided to appoint an agent he may proceed further. Special merits and advantages of his products are clearly shown in the letter. He may compare his products with other goods. He gives a fine description of his products. 3. Facility offered: Liberal terms are mentioned on the expectation of the best sale proceeds. Advantages offered, such as, regular advertisement, maintenance of show-room, salary or commission or both, etc. are stated in his offer. Conditions and period of service expected are informed.After having mentioned, the above point, the letter may be concluded with a hope of mutual benefits. When an agent has been appointed, the principal must respect the agent’s personal knowledge ofarea. He will possess more knowledge than the principal, in respect of his own area, because of the closecontact with the customers. The principal should supports his activities by advertisement, supplying information as soon as achange takes place in his products etc. the agent’s letters, suggestions, etc. should be given due respectand importance. Care should be taken that a non-cooperative nature does not arise between an agent andthe principal. If cooperation is there between them, the maximum results can be reaped. Hints for drafting 1. Refer to the advertisement made by the manufacturer. 2. Write about your business standing and experience 3. Your business contacts 4. Your knowledge of the market conditions 5. Your capacity to offer special facility – showroom, display, window dressing, van etc. 6. Mention terms and conditions of agency business. 7. Give trade and bank references 8. State any other matter that may support your claim.Model 172 : Enquiry for agency RAM & COMPANY (Dealers in toilet articles) Palace road, Kolkata – 700012 20th Sept. 2001The Toilets & Co., BSPATIL 128
  • 129. Agra 282 005Dear Sirs, We are confident that, nowdays, there is a high demand for the toilet soaps of best quality. As wehave knowledge of local conditions and have long connections with the dealers of toilet items, we offer tosell your product in this area. We also import toilet articles from foreign countries. We have our ownshowrooms in the heart of the city. Our stall in the exhibition organized by the Kolkatta Corporation lastyear, was well appreciated. We have five branches in the city. We look forward to your terms and conditions for an agency. We give two references. An early replyis solicited.M/s. Madan Stores, Beach road, Kolkatta – 1M/s. Jain & Company, Kolkatta – 10 Yours sincerely For Ram & Co.Model 173 : Offer of an agency JOHN AND HARI (Milk Products) Palace Road, Allahabad 20 Sept. 2001 thThe ManagerGeneral AgenciesMysoreDear Sir, We feel that in your area there is a great demand for milk product. If you prefer to represent ourfirm, we offer you the sole agency for Mysore region. Since our milk product have great demand in other places, we hope you will find to difficulty inintroducing them in your area. We can give 15% commission on net sales and we shall pay you all the expenses met by you, onbehalf of our firm. We shall send the detailed conditions to you on hearing from you.Thanking you Yours sincerely for JOHN & HARIModel 174 : Decision in appoint an agency MORTON’S LTD. (Stationary Dealers) West Street, Allahabad 20th Sept. 2001The Singer & Co.MumbaiDear Sir BSPATIL 129
  • 130. We thank you very much for your letter of 10th Sept. 2004 and appreciate the confidence you haveshown in your letter. We think that we can try with cheaper models in order to test the market. At first let us have a trialperiod of three months. If we find a suitable market for the products, we shall enter into an agreement onusual terms and conditions stated in our letter of 10th September, 2004 Awaiting your further suggestions. Yours sincerely, For Morton’s Ltd.Model 175: Agency offered BANARJEE & SONS (Dealers in Machineries) Mandir Street, Kolkatta-1 th 20 Sept. 2004The United Machinery Centre,Agra,Dear Sirs, With reference to the advertisement in The Indian Express of 12th Sept. 2004, we would like to offerour service to take up an agency for your product machine tools. We are exporters of machine tools to Australia and Iran. If your products have as much durability assimilar products, we are sure that your products can be exported to Australia. We agree to the terms andconditions stated in your advertisement. We like to heat further from you.Thanking you Yours sincerely For Banargee & Sons. …………………………Model 176 : Suggestion from an Agent JOSE BROTHERS Naval base, Kochi. 20 Sept, 2004 thM/s Mathew & Sons,Mumbai – 400 015Dear Sir, Now it is difficult to sell your product in this area, of course, the quality and durability of yourproduct are far better than similar products. Our customers prefer to purchase your product, but complainabout the price. The price you have fixed is beyond the purchasing capacity of the customers. Therefore, it is suggested that cheaper goods of the same type may please be sent to us. Ifpossible, please try to reduce the face value of your present goods. Pleas consider this seriously and come to as early decision. BSPATIL 130
  • 131. Thanking you Your sincerely For Rose Brothers.Model 177 : Principle’s reply MAHESH COMPANY Malad (West) Mumbai – 400 095 29th May, 2004M/s. Sunder and Sons Ltd.Chrompet,Chennai – 600 044Dear Sirs, Agency th We thank you for your letter of 10 May and after careful consideration of the contents, we arefavourably impressed with the proposal you have made with us. We are already represented in your area by one firm, who are doing good business. However if youare willing to give us an undertaking to sell the papers, atleast worth Rs. 5 lakhs per months, we will allowyou our agency. We allow you a trade discount of 20% on our catalogue price. We believe that this connection would prove mutually beneficial and we4 trust that your will heprepared to cooperate with us. A copy of the agency agreement will be sent to you on receipt of yourfavourable reply. Thanking you Yours sincerelyModel 178 : Letter asking for agency SUNDER AND SONS LTD. Chrompet, Chennai – 600 044 10th May 2004M/s. Mahesh and Company,Malad (West)Mumbai – 400 095Dear Sirs, We have recently read with interest your advertisement in the Hindu of 8th May offering the agencyof your product. We, therefore, offer our services to act as your agent for this area. Our firm was established in 1975. We have been doing extensive business in the paper – all kindsof papers. We are the premier suppliers of papers to all the sellers in this area. It is also understood thatthe quality of your product is good. We shall be glad to know if our proposal is acceptable to you and if so, will you kindly indicate thegeneral terms and conditions upon which you would be willing to negotiate with us. We hope to give you aminimum business worth Rs. 5 lakhs. BSPATIL 131
  • 132. We have already had business relations with (1) M/s. Mohanlal and Sons of Chennai – 600 005 andM/s. Premchand and brothers of Chennai – 600 040. They know us well. We hope to hear from you at an early date while assuring you our cooperation.Thanking you Yours sincerelyModel 179 : Information from a principal RAMESH BROTHERS & COMPANY Rama Street Calcutta – 1 20th Sept. 2004M/s Patel & SonsChurch Road,Mumbai. 400 050Dear Sirs, We regret to inform you that in the last two months, your sales show a sharp decrease. We do notknow the reasons. There may be good reasons for this unsatisfactory state of affairs. It is our duty to extend our help to all our agents: but regret to state we are unable to do any helpif they do not inform us of their difficulties. Please send your reports after a careful enquiry in this matter. We look forward o an increase in the sales as a result of our joint efforts. Yours sincerely, For Ramesh Brothers & Co.Model 180 : Letter from an agent to the principalTel. – 536Gram : Mathew MATHEW & SONS (Dealers in Imported Machines) West Street, Calicut, 20th Sept., 2004Ms/. Johnson & JohnsonPalace Road,AgraDear Sirs,We would like to bring to your attention the fact that Calicut has a good market for printing machineries.Your representative, Mr. R.M. Sharma often visits the place in order to book orders.We have been in printing machinery trade for the last ten years and dealing with foreign manufacturers,Due to the scarcity of imported machines, we would like to offer our services to you. our firm is situatedvery near the railway station, in the heart of the city. We have our own showroom facilities in two places.We have a lot of permanent customers. In these circumstances, we request you for the agency on the basisof a commission of 10% in sales proceeds. BSPATIL 132
  • 133. We would like to hear from you regarding the terms and conditions of the agency, if you prefer ourservices. References are also given for your enquiry.Thanking you 1. Mr. K.P. George, Mg. Director John & Sons, Callicut 2. The Indian Foods Ltd. Calicut. Your sincerely For Mathew & Sons ………………………Model 181 : A Favourable reply from the principal Gram : Jona Tel. 2563 JOHNSON & MATHEW (Manufacturing of Printing Machines) Palace Road, Agra, 30th Sept. 2004M/s. Mathew & sons,West Street,CalicutDear Sir, With reference to your letter of 20th Sept., 2004 we are glad to offer you the agency of our printingmachines. We know you creditworthiness and reputations in the place. Therefore, we lay down thefollowing terms and conditions. 1. 10% commission on sale proceeds up to Rs. 10,000 and 5% on the amount exceeding it will be allowed. 2. The agency contract will be valid for a period of 3 years. After this, period, both the parties are at liberty to continue or to discontinue. 3. There must be a guarantee of securing orders, not less than Rs. 7.000 per month. 4. The showroom expenses will be met by us up to a maximum of Rs. 2,000 5. If the advertisement expenses relating to our products are reasonable 80% of such expenses will be met by us.Please let us know whether the above-said conditions are acceptable to you. as soon as we hear from you,we shall proceed further. For writing up the agreement, your presence will be required at Agra. Yourtravelling expenses for this purpose will be borne by us.Thanking you Yours sincerely For Johnson & Mathew BSPATIL 133
  • 134. Model 182 : Claim on the forwarding agent for the loss JOHN AND HARRY (Stationary dealers) Palace Road, Allahabad th 20 Sept. 2004The ManagerGeneral Agencies,Mysore.Dear Sir, We are greatly surprised to find that the consignment you sent to us contains only one gross ofwashing soaps. Please refer our order dated 10th Sept., wehre we needed 2 gross of washing soaps. Onegross is found missing. Your delivery note also shows 2 gross. Will you please make necessary enquiries tofind out what happened to one gross. If it has not been dispatched, please send it immediately.Thanking you Yours sincerely, For John & Harry ……………………Model 183 : Complaining delay to dispatch MATHEW PRINTERS & SONS West Street, Calicut. 15th Oct. 2004M/s. Johnson & JohnsonPalace Road,Agra.Dear Sirs, Sub : Delay in dispatch We wish to draw your attention to our letter of 15th Sept. 2004 and a subsequent telegram of 30thSept., Despite the fact, we have heard nothing from you. the valuable customers are returning dailydisappointed. If you had sent those printing machines through passenger train, it should have reached aswithin a fortnight from the dispatch date. Some of our customer are at the edge of cancelling the order booked with us. It becomes verydifficult for us to give satisfactory reply to all the customers. Therefore, it is requested that the machinesmay be dispatched as soon as you receive our orders. Unreasonable delay in dispatch will put us in loss ofbusiness. Yours sincerely, For Mathew & SonsModel 184 : Favourable reply to the agency CROMPTON BOOK AGENCIES Church Road, BSPATIL 134
  • 135. London E.C. 2 15th Oct. 2001M/s. Abdul Kasim & Sons,P.B. No. 2314Mumbai.Dear Sirs, Thank you for your letter of 20th Sept. 2004 and we have great pleasure in writing the terms andconditions as given below: 1. Sole agency of the books will be given to you provided you undertake to purchase at least books worth £ 10,000 per annum. 2. We allow 15% discount on catalogue price. 3. The full amount of the invoice will have to be remitted to us within 40 days from the date of receipt of books. 4. All consignments will be supplied at F.O.B. Bombay. 5. 50% of advertising and exhibition charges will be met by us provided such expenditure is reasonable. 6. If your sale proceeds exceed £ 20,000 are allow you a further special discuojtn of 10% in addition to the discount 15%.This agency stands for a period of ten years. Please let us know you decision at an early date. The agency agreement form will be sent to you asand when we hear from you. Your truly For Crompton Book Agencies ………………………………….Model 185 : Letter offering agency FOOD SPECIALTIES LTD. M.G. Road, Kanpur. 10th May 2004M/s. Johnson & BrothersTrunk RoadJabalpurDear Sirs, The growing demand of our products has convinced us that we have a good market for ourproducts in your locality. We did not appoint any agent to represent us in your area. So we now feel thenecessity of a local agent for our products and, as such, shall be glad to know if you are willing to act asour local agent in your District of Jabalpur. We believe that you will find no difficulty in introducing ourproducts in your district because of their good quality and growing demand experienced so far. We areready to back you by our extensive advertisement and showroom at our cost. We shall offer you a commission of 20% on net sales plus other expenses. We shall never hesitateto honour your valuable suggestions in this respect for a lasting success in business. We trust that it willnot be inconvenient for your to undertake our agency. We shall be glad to receive an early reply. We shallbe happy to send you the formal agreement as soon as we hear from you. BSPATIL 135
  • 136. Thanking you Yours sincerely For Food Specialties Ltd. (Marketing Manager)Model 186 : Letter offering Agency BABY BICYCLES MANUFACTURERS Mumbai. 20 August 2003 thM/s. Mortin & Sons.Trunk Road,BhopalDear Sirs, We hope that you knows our name as bicycle manufacturers. We have no local agent on your areato represent us. We learn from one of our trusted friends that you deal to bicycles and you have goodtrade connections. You may perhaps know that our bicycles and our firm are familiar in your locality. We have every reason to believe that our bicycles would be in good demand if we find an activeagent to introduce them properly to your local buyers. We have taken utmost care to make our bicyclessuitable for your locality both from the points of durability and price. The prices of our bicycles have beenfixed in such a way that they may be within the reach of common people. We propose to consign cheaper models unless you express your desire for fashionable and dearerones. To overcome your initial difficulties in introducing our products, we are willing to allow you, as soleagents, a commission of 20% on net sales. It is our firm belief that the connection we propose to establish by this letter would provemutually beneficial and we trust that you are ready to co-operate with us in our endeavour. Hope to hearfrom you soon.Thanking you Yours sincerely, For Baby Bicycles Manufacturers (Marketing Manager)Model 187 : Accepting Agency in reply to an offerMortin and sonsTrunk Road,Bhopal (M.P.)1st Sept. 2004M/s. Baby Bicycle manufacturersMumbai 400043Dear Sirs, We thank you for your letter of the 20th August, offering us the agency of your products in ourlocality and glad to appreciate your confidence in us. We have no hesitation in accepting the agency. We can assure you that we shall not fail in ourendeavour to show a better performance which will justify the establishment of an agency here. But inorder to secure success, you should take utmost care to send quality goods at competitive prices. BSPATIL 136
  • 137. We are ready to accept your offer on the terms stated in your letter. We shall be glad to receive theformal agreement form as early as possibleThanking you Yours sincerely, For Mortin & sons.Model 188 : Refusing an Agency offered PETERSON & BROTHERS Town Hall Road, Agra. 12th Oct. 2004M/s. Debey Brothers Ltd.Trunk Road,KanpurDear Sirs, We are really obliged for your letter of 10th Oct. offering us the agency for your products in Kanpur.But we regret to state that we are not in a position to accept your offer, because of the following reasons: 1. We deal in similar products as agents of a reputed firm. The products with which we are dealing at present face a serious competition in the local markets with similar products of other companies. the market is rather glutted with these types of products. Therefore, we are not confident about the sale of your products in this area. 2. We are reluctant to take up agency of more than one firm. We fully hope that you will recognize our difficulties. Thanking you. Yours sincerely For Peterson & Brothers.Model 189 : Seeking agency WESTEND STYLE LTD. Car Park Area, Chennai, th 14 Sept. 2004The ManagerCentral StoresMaduraiDear Sir, We have the pleasure in offering our services as agent for selling your plastic products youmanufacture. We suggest that our knowledge of the local conditions and long standing reputations inagency business will enable us to render the best services. If you are in favour, please let us know the terms and conditions as early as possible.Thanking you. Yours sincerely BSPATIL 137
  • 138. For West End Style Ltd.Model 190: Letter Offering Agency SURESH CHAND & COMPANY Shopping Complex Agra. th 27 September, 2004M/s. Chatterji & SonsKolkata.Dear Sir, Thank you for your letter of 20th September offering your agency for our products in your area. Weare impressed at the possibilities of wide market for our products. As such we have decided to appoint youas our agent. We accept your terms and conditions with regard to commission and method of settlement. But werequest you not to sell any other products which may directly compete with our products. A formal agreement form is sent herewith. Kindly return the form duly signed. Yours sincerely For Suresh Chand & CompanyModel 191 : Agent’s report RAJESH TRADERS Brook Land Kanpur th 20 August 2004The Sunrise Traders,Park View Mansion,Agra.Dear Sirs, We submit the following report regarding the prospects of sale of your coffee products in this area.We also suggest necessary measures for obtaining a successful sale of the coffee powder. People over this area are habituated to drink stimulants daily in the morning and evening. Many ofthem are in the habit of taking stimulant drinks frequently in the day time. Most of the people here arepoor. At present, they are habituated to drinking tea. Coffee is costlier than tea. As such, a cheapersubstitute will have a warm welcome. Your product-coffee is unknown in this area. However, thepreference is at par with tea. I suggest the following for improvement: 1. The price of coffee may be reduced slightly in order to attract the buyers. 2. To cultivate the habit of coffee, prepared coffee at lesser price is suggested. In the initial stage to attract the drinkers, profit may be overlooked. 3. A few coffee-stalls may be opened in the busy area only to popularize the habit of drinking coffee, atleast for 6 months.We trust that our suggestions will not discourage you. we look for satisfactory trade to be built up in thisarea. Our suggestions, if accepted, will automatically boost the sales of coffee within a year.We earnestly await for your prompt reply.Thanking you BSPATIL 138
  • 139. Yours sincerely For Rajesh Traders.Model 192 : Offer for agency ABDUL KASIM SONS (Publishers of books) P.B. No. 3214 Newton, Mumbai 29th Sept. 2004The ManagerCrompton Book AgenciesLondon E.C. 2Dear Sir, Our friend Mr. James, Sales Manager of M/s. Petersons Ltd., London, informed us that you are inneed of a reliable firm in Bombay to work as an agent for your valuable publications. Therefore, we takepleasure in offering our services to you. We are doing extensive business in selling books. We are well known in India as importers ofTechnical Books from many countries. We have our branches in all important cities in India. We find thatthere is a great demand for foreign technical books on wireless and electronics.Under these circumstances, we feel glad to accept the agency for you firm. If you are in favour please letus know the terms and conditions as early as possible. We also mention Mr. James of Peterson Ltd. and Mr. Wright of Francis & Co. of London for furtherreferences. Yours sincerely, For Abdul Kasim Sons.Model 193 : Enquiry of low sales NAIDU & COMPANY Mahatma Gandhi Road, Kolkata 21st September, 2004M/s. Arun & Co.,AgraDear Sirs, We noticed with regret that your sales show a sharp decrease for the last two months. Our productscan be sold our easily in the market. We are receiving a good number of orders from you neighboringareas. You did not mention anything about the fall in sales in your reports. Unless you write to us, howcould it be possible for us to solve the problems. So, please make a detailed enquiry and let us know of it.Then we shall assist you in tacking the situation very nicely. Yours faithfully, For Naidu & CompanyModel 194 : Respecting agent’s suggestions BSPATIL 139
  • 140. FRANCIS KEEN LTD. Mahatma Gandhi Road, Agra. th 20 Sept. 2004The Tarun Electricals,Jawahar ChowkBhopalDear Sirs, Thank you for your letter of 15th Sept. 2004. Please accept our congratulations for your excellentwork done in the month of August, 2004 We feel glad of your suggestions of printing catalogues and price-list in Hindi. Accordingly we haveordered to print the same in Hindi and expect to get them within a week. You may receive them at the endof this month. I have every reason to believe that this cooperation will further achieve more and more sales infuture. Yours sincerely For Francis Keen Ltd.Model 195 : Letter introducing representative WESTEND STYLE LTD. Car Park Area, Chennai – 600022 18th April, 2004The Manageress,Central Stores,Madurai.Dear Madam, We wish to inform you that we have recently appointed Mr. James as Sales Representative for youarea in succession to Mr. K.T. Kurain, who has now left us. Mr. James will have pleasure in calling on you in the near future, when it will be convenient for youto grant him an interview. He has rich experience to his credit and will be able to give you valuable adviceconcerning the most suitable lines to stock things for the coming season.For your convenience, we enclose envelops and post cards addressed to him in order to correspond withhim directly. We hope that his appointment be to our mutual advantage.Thanking you Yours faithfully, For West End Style Ltd. (Manager) BSPATIL 140
  • 141. Chapter XIX CORRESPONDING WITH THE GOVERNMENTBusiness houses will have to correspond with different departments of Government and public bodies –Central, State, Provident Fund Commissioner, Postal authorities, Railway authorities, Tax authorities etc.When one deals with authorities, one should have correct and complete knowledge of the rules andregulations governing the matter under reference.The nature of correspondence in Government offices has a peculiar nature of its own, fro example: 1. Memorandum (Memo) 2. Official Notes. 3. Demi-official (D.O.) letters 4. Orders, 5. Endorsements 6. Resolutions. 7. Reminders etc.Memorandum is popularly known as memo. Memoranda or memos are used for internal communicationbetween executives and sub-ordinates or between officers of the same level. Office Notes are used forhorizontal communications. They are exchanged between departments or between officers of almost equalranks, seeking or asking for suggestions or giving information on a certain matter. The format is that of amemo. Office order is a tool of downward communication. Orders are usually related to posting,promotion, suspension, termination of services, granting or with holding certain privileges, imposingrestrictions etc. Demi-official (D.O.) letters are those which are generally written by a Government officialto another Government official at a personal level. Such D.O. letters are used by one official when it isdesired that the matter should receive the personal attention of the officer when it is desired that themanner should receive the personal attention of the officer concerned. When action has been delayed orofficial reminders fail, the officer writes such letters to draw the personal attention of the recipient.Resolution is a Government communication setting forth either the view and attitude of the Governmentor the action taken or the decision arrived at by the Government on a matter of some importance.Resolutions are issued specially on those matters which have been the subject of discussion or enquiryand are otherwise engaging the attention of the public. They are issued by the Government and not by anindividual. Endorsement, Sometimes a letter or document is transmitted or forwarded by oen office toanother office or person for information, report or necessary action. In such cases, it is not necessary towrite a letter to accompany the original letter or document Instead, an endorsement alone has to be putdown at the end of the letter to be forwarded. The letter may be forwarded either the letter in the originalor a copy of it is sent. Notifications are official announcements regarding such matters as appointment,promotion, transfer, retirement, resignation of officers etc. The notifications are addressed to nobody inparticular but are meant for information to the public. They are written in the third person. Reminderletters are sent when suitable action on an official letter does not come off within a reasonable time.It is difficult to explain such letters exhaustively. We are mainly concerned with the correspondence thattakes place between businessman and Government departments. Businessmen departmentscorrespondence is not in our preview.Model 196 : Regarding enquiry of a money orderR.K.Shah 1264, bazaar Street, BSPATIL 141
  • 142. Nagercoil – 629002 11th Dec. 2001The Post MasterNagercoil – 629001Sir,Sub: M.O. for Rs. 120.00 sent vide your receipt No. 35469 of 20th November, 2001 It is hereby informed that I sent a money order for Rs. 120.00 to Mr. K.L. 1256, Civil Line, Madurai,on 20th November, 2001 vide your receipt No. 35469. But it is surprising to note that the payee has not yetreceived the same. I, therefore, request you to enquire and inform the results.Thanking you Yours faithfully R.K. ShahModel 197 : Non-Delivery of telegramR.M. Naidu 128 Madurai Road, Pollachi th 8 Dec. 2001The Post Master,Coinbatore.Dear Sir,I sent a telegram to Mr. P.M. Nadar, Palace Hotel, Madurai on 5th Dec. 2001. But it is surprising to note thatthe addressee did not receive the above said telegram, which has put me into much inconvenience. Thetelegram was properly addressed and was an express one.Please enquire and let me know of it.Thanking you Yours faithfully R.M. NaiduModel 198 : Reply to a complaint No. 147/Tel./Com.The Post Master,Coimbatore,R.M. Naidu128, Madurai Road, 15th Decembr…………. Sub.: Non Delivery of telegramSir,Your complaint dated 8th Dec. 2001, has been forwarded to the Circle Office for further action. A fortnighttime is required to get the enquiry reports. Yours faithfully Post Master BSPATIL 142
  • 143. Model 199 : Complaint to the Railway Department 123, Mount Road, Coimbatore, 9th Dec. 2001The Chief Commercial Superintendent,Southern Railway,Chennai.Dear Sir,On my transfer form Chennai to this place, I had to get my household articles by goods train. I packed theparcels very carefully and booked them on 30th Nov. 2001, vide R/R No. 453. The packages were not heavyfor carrying even by an ordinary man. But it is surprising to note that two of the parcels were broken, whenthey arrived at Coimbatore and costly books worth Rs. 20,000 were found missing from those two parcels.I am sure that these parcels might have been very roughly handled in transit. I therefore request you toarrange for payment of compensation for the damage caused during transit.Thanking you. Your truly M.S. NadarModel 200 : Letter to Income Tax Authority seeking permission to remit taxes in installments 1236, Civil Line Coimbatore. 6th Dec. 2001The Income Tax Commissioner,Coimbatore.Sir,With reference to your Memo No. 345 of 5th Dec. 2001. I would like to intimate as follows:In the last assessment year 1 remitted Rs. 2,500/- against your assessment of Rs. 1.500/- and a sum orRs. 1,000/- remains to be remitted. As I have already intimated to you, three our of the five to houseswere gutted in fire last month. No rent is received and as such I request you to permit the to remit thebalance Rs. 1,000/- in four installments.Thanking you Yours faithfully R.K. NaiduModel 201 : Explain from income tax payment1254, Brooke Bond Layout,Madurai5th January, 2002The Income Tax Officer,Madurai. BSPATIL 143
  • 144. Sir, We have received your Demand Notice No. 454 of 1st January, 2002 to remit Rs. 2,000/- as thebalance of assessment for the financial year April to March. During this assessment year, my income fellbelow the minimum assessable amount. One of your clerks has already seen the books of account. Ipresume that this notice might have been sent due to oversight. In the month of Sept. 2001, we remitted Rs. 250/- vide your receipt N o. 435 of 12th Sept., 2001.Since my income is below the assessable amount. I request you to refund the same to me or get thebalance adjusted in the next assessment.I am prepared to produce my books of account for you personal examination.An early action is highly solicited. Yours faithfully R.P.Shaw.Model 202 : Permission to open a stall in the exhibitionP.N. DubeyArtist 1234, Triplicane Chennai 9 Dec., 2001 thThe Mayor,Corporation of ChennaiSir,Sub. : Permission to install a stall in the ensuring exhibition. I came to know that an exhibition is being shortly opened in the Chennai City comprising of artsand industrial exhibits. Since I am an artist. I would like to open a stall, in the exhibition. I need a smallspace of 16’ x 16’.I am willing to remit the rent in advance as soon as I hear from you. Yours faithfully P.N. DubeyModel 203 : Letter regarding income tax assessment RAMLAL AND BROTHERS P.B. No. 487 Nagercoil – 629 001 10th May, 2002The Income Tax OfficerNagercoil – 629 001Sub. : Notice of Demand of 1st MayWe have received your notice of demand dated 1st May, 2002, asking us to pay Rs. 9,500 for the year2001-2002 on account of income tax on our firm. We regret to say that you have resorted to this actionwithout giving us an opportunity of being heard. BSPATIL 144
  • 145. In this connection we would like to inform you that the said assessment might have been due to oversightbecause our income during the period has been below the assessable minimum amount. However, it isclear from the enclosed duplicate copy of our income tax returns already filed. Please call us for our booksof account for scrutiny and pass orders for the total exemption from the tax.Thank you.Yours faithfullyModel 204 : Letter to Railway Authority for damage in transit SAKTHI TRADERS Chennai 600 003 ……………………The Chief Commercial Superintendent,Southern Railway,Chennai.Sir,Sub.: Damage in TransitWe are sorry to inform you that four cases of ready made garments forming part of the consignment fromM/s Ramlal & Sons, Mumbai to us and covered by your R/R “No. 4762 were found damaged in transit. Thecases showed clear signs of pilferage and this fact was brought to the notice of the delivery clerk at thetime of taking delivery by us.We are now enclosing the full particular of the damage. The damages comes to Rs. 2,500. You arerequested to accept our claim and settle the matter at the earliest.Than you Yours faithfully For Sakthi TradersModel 205 : Complaint to Post Master about non delivery of Registered Parcel STUDENTS BOOK CORNER Navy Road, Visag – 530 014 10th June, 2002The Post MasterVisag – 530 014Sir,Sub: Non-deliver of Registered Parcel No. 472We have forwarded through your office a registered parcel vide your receipt No. 472 dated 14th May, 2002,addressed to Mr. Udith Kumar, 18 Bannerghatta Road, Bangalore 560 076. The Parcel contains booksworth Rs. 800. It was properly packed and scaled. We are surprised to know from Mr. Udith Kumar that thesaid parcel has not reached him yet. We are afraid that the parcel has gone astray.We, therefore, request you to kindly make necessary enquiries to trace out the whereabouts of the saidparcel and arrange its delivery to the addressee at an early date under intimation to us. Than you. Yours faithfully. BSPATIL 145
  • 146. Chapter XX DRAFTING OF REPORTS“A report is a communication from someone who has some information to someone who wants to use thatinformation.” It is basic management tool used in decision-making. In a one-man business, in earlierperiods, the proprietors himself took decisions on the spot. In those times, producers or salesman wentour, met people and tried to sell their products. But now the times have changed Mass production isfollowed by mass distribution campaign through a study and awareness of market conditions, competition,consumers, taste and preferences. Production-oriented stage has been replaced by consumers-orientedstage, in which consumers have been given utmost importance. Production of articles is mostly governedby their taste, likings, demand etc. The expantion of market and severe competition, have necessitated thestudy of markets. Large scale organizations like the MNCs are engaged in multifarious activities, which arehandled by different departments of the organizations. The top executives have to take decisions on thebasis of the reports they receive from different departments. Thus reports are essential, without which,wise decisions cannot be taken. A business report is an objective, impartial presentation of facts with orwithout comments or recommendations. A business report is based on data, enquiry, investigation, survey,experiment, research etc.When one is asked by his principal to submit a report on certain event, he goes to the place concerned orrefers to the related records and studies them carefully. Then, he prepares a report on the subject given bythe principal. Take an example of the Report of a Tournament in Hockey. Suppose, we are editors of acertain Daily and want to publish it for the public. We can depute someone to that place, where thetournament is going on. The deputed man goes to the place and carefully watches the progress of themathc from the beginning to the end. He also tries to collect the information, such as, between whom theplay is being held, names of judges or umpires, probable number of the public watching the games,general option of the play, final results, etc. Then, when the tournament is over he sits to prepare thereport. Those who could not witness the match, can have a clear idea of the match and its proceedings ygoing through the reports publishes. Apart from this, the reporter may also add limitations of the event,his suggestions and recommendations over the matter.Generally to have a report prepared, the following points have to be borne in mind: 1. Appointment of reporter mentioning purpose thereof. 2. Work done and fact finding. 3. Recommendations, opinions and suggestions of the report 4. ConclusionThere is an important thing to be remembered by the students. A report is prepared for someone who is inneed of it. Therefore, before writing a report, think well. Your report must be find regarding facts foundout.If report is a small one, it can be in the form of a letter. If the report is too long, write it in an annexureform, and enclose it with a forwarding letter. Let us discuss the parts of a report briefly. 1. Appointment of a reporterA reporter is appointed orally or by means of a letter, and he is instructed about the subject-matter, onwhich a report is to be prepared. The time for the submission of the completed report also will be given. 2. Fact findingThe work depends upon the nature of the event about which the report is to be prepared. The work mayinclude visiting of the sports or places, consultation with some people, correspondence, cross examinationof persons concerned, holding of meeting etc.After collecting the materials, the reporter starts preparing the drafts. He tries to find out the facts or thereal thing by experimentations. The facts of the finding are written serially 1,2,3 and so on to give a clearpicture. 3. Suggestions or recommendations BSPATIL 146
  • 147. When the reporter is asked about his own suggestions or recommendations, he gives his own views. If hissuggestions are not asked, it may not be included in the report. In certain cases the reporter is free to addhis own views. 4. ConclusionThe concluding part of a report contains the merit of the fact finding or the general view of the mattersconcerned. If anything extra is to be mentioned along with the report, the reporter mentions it in this partof the report. Thus a report takes its shape.Commercial Traveller’s or Agent’s ReportIn case of commercial travellers or agents, they have to send their reports of the business to the principalperiodically. Such reports may contain the following: 1. The place and date of report for easy location, a serial number. 2. Details since the last report sent. 3. Number of credit collections made and the total amount of them. 4. Unpaid party’s name, so as to check further flow of goods to such parties. 5. Information about the status of firms or individuals visited. 6. Finally agent’s own views of general tendency of the business.Committee’s ReportThere may be some reports, which cannot be prepared by individuals. In such cases, a committee isappointed in order to make out a report. The information of a committee facilitates the work to be donemore effectively, efficiently and speedily.An individual may not be an expert in all the fields. A committee is appointed comprising of a number ofpersons. Even the committee may have sub-committees. The sub-committee works as per the instructionsof the main committee and gives report to the main committee. The members of the committee and givesreport to the main committee. The members of the committee discuss the matters collected by them byholding meeting and prepare the report. Finally the Chairman or Secretary will put the signature on thereport. In some cases all the members of a committee will put their signature.Press ReportIn our day to day life, we come across many repots in the newspapers. The annual report of the generalmeeting of a Public Limited Company is generally published. This type of report is in the nature of anessay. The aim of such a report is to apprise the public of the activities of the Company.Market ReportsThe market report may either be a daily or a weekly one or may be for a longer period. In the Dailies andother magazines, we can come across reports relating to market conditions, price position, etc. on variouscommodities. It is natural that a capable and suitable businessman will take advantage of such reports.Moreover, it is helpful to the buyers also. All the activities of trade and commerce will be known from timeto time.The reporter much pain to collect the relevant data from various sources and then prepares the reports. Inorder to make the report a short one, technical vocabulary is used. The market reports are useful to buyersas well as sellers, manufacturers, traders, speculators, etc. because market reports indicate the trends ofmarket conditions.The following factors are found in the market reports: 1. Head-line of the report-subject-matter. 2. Date on which the report is prepared. 3. The body of the report relating to the trend and movement of prices of selected commodities. BSPATIL 147
  • 148. 4. Change in prices, reasons for it, internal cause, etc. 5. Probability of future market with a conclusion.Students of commerce studying the subject Business Organizations, Economic Principles, OrganisedMarket etc., are advised to take advantage of such market reports.Business repots are of the following types: 1. Periodic reports (routine reports) These are reports sent to the head – office periodicay i.e. monthly, quarterly, half-yearly, etc. 2. Progress Reports These are reports relating to the progress of a firm. These reports facilitate the comparison of business of a past period with that of the present period. 3. Examination Report This is a report sent after the analysis of past and present conditions and collection of data pertaining to the enquiry. After through investigation, a report alongwith recommendations is prepared. This is understandable even to a layman.Press Report The important requisites of a good press report: 1. The report should be precise in form and accurate in its meaning 2. The readers should not have any difficulty or confusionin understanding the reports. 3. The style used in the message should be catchy and attractive, so that readers will be induced to go through the report. 4. The report must be on various current topics and mobilize public opinion. 5. The report must be quickly published and reach the public without delay 6. The press report should have the following a. The head-line b. The place and date of reporting c. A catchy beginning d. A narration in simple and clear language “write as you talk”, paragraph wise e. Concluding prargraph. Characteristics of a good report “The report should be characterized by clear expression an d neat display, should be in nature of an argument; well reasoned and arranged, accurate in all its details, and leading logically to the conclusions and recommendations set forth”. Stephen 1. It must be in simple language. Ornamental language should be avoided. 2. It must deal with the subject – matter briefly and precisely 3. It must be free from repetition and exaggerative remarks 4. It must have grammatical accuracy 5. It must be based on the objective data rather than on mere subjective or imaginary conclusion 6. Facts presented in the reports must be accurate, reliable and complete, 7. The reporter must make clear his purpose, reveal the sources of his information and make necessary recommendations and suggestions. BSPATIL 148
  • 149. 8. A good report is always reader-oriented. 9. Recommendations and suggestions of the report must be impartial and objective. 10. The subject matter must be systematically arranged. 11. The reporter must know what is important and what is unimportant.Model 206 : Below are given models of reports PULSES STOCK CURBS New Delhi, 10th JulyThe Food and Suppliers Department has decided to withdraw the permission granted to the wholesaledealers to stock more than 500 quintals of pu8lses. The order comes into effect from 15th July. As as resultof this step, huge quantities of pulses are likely to be available in the Delhi Market. The retailers are alsowarned to follow the principles. It is also directed that the wholesalers can dispose of the excess quantityto the retailers and not to other wholesalers.Model 207 : ELECTRONIC APPLIANCES LTD. Aruppukotta, 13th Dec. 2001The DirectorSirs,I am enclosing a report submitted by the committee appointed in connection with the question ofextension of our factory. Yours sincerely, Chairman………………… Secretary………………….Encl: as above Report of the Committee Appointed by the Resolution of the Board of Directors on thequestion of extension of our FactoryThe committee is consisted of 3 members, viz., Messrs., R.S. Raju, P.N. Gopal and T.R. Naidu. 1. They inspected the conditions and found it profitable to extend our factory. Our annual production can be doubled. 2. 10 acres of land is to be acquired. The plot behind our factory can be purchased at a cost of Rs. 35,000. 3. The additional machinery can be purchased at a cost of Rs. 1,50,000 from the Indian Machinery Dealers, Madurai on full payment or on installment basis. 4. The extension work of the building can be completed within three months at a cost of Rs. 25,000. BSPATIL 149
  • 150. 5. Skilled and semi-skilled labourers are easily available from the Industrial Trading Centre, Virudhunagar. 6. A capital of Rs. 3,00,000 is required for this purpose and can be had by floating shares. They are sure, that the shares can be sold our easily, because our firm gives high dividend. 7. They have obtained plans, estimates, blueprint, etc. for the extension purposes.The above is the summary of report submitted by the committee members.Since the report is favourable, they are inclined to start the work without any delay. If the committeemembers are invited at the next Board of Directors Meeting scheduled to be held on 20th Dec. they will beglad to furnish any further information. SecretaryModel 208: 15th Dec. 2001M/s. JKain & CompanyChartered AccountantsCivil Lines, Mumbai (T.N.) Audit ReportWe have audited the accounts of Messrs. Raju & Co. Ltd., Madurau, as on 31st December 2001. 1. In our view and to the best of our knowledge and according to the explanation given to us, as per Companies Act. 1956, we found that the maintenance of the accounts is quite satisfactory. 2. Messrs. Raju & Co. Ltd. Madurai, has a branch at Pollachi since last year. Form the statement of accounts supplied by the branch, we find that the firm is running on loss and hence the branch can be closed down immediately. 3. While auditing the stock registers of the Head Office it was found that bulk purchases were being made. Thus, Rs. 40,000 are blocked unnecessarily and without proper care of those stocks purchased. Stocks worth Rs. 8,000 had been written off in December 2001. This type of huge purchases or loss of stocks should be avoided. 4. Balance sheet and Income and Expenditure Account agree with the books of accounts maintained by them. 5. In our firm opinion, the firm maintain proper books of accounts as required by the Companies Act. 1956.Madurai Jain & Co.15 February. Chartered AccountantModel 209 : Commercial Traveller’s Report Camp. : Room No. 45 Kumar Hotel, Visag. th 13 June 2002From : Nikhil Sunder, Area Sales ManagerTo. Mr. Udith Kumar BSPATIL 150
  • 151. Regional Sales ExecutiveSub. : Report on sales : Month ending 31st May, 2001Sir,Places Visited : Complete area of Visag and RajahumundryCollections Made : Visag : Amount (Rs.) Cash/cheque Collection Made : Visag: 1. M/s. GR Sons Ltd. 15,700 Cash 2. M/s. Krishna Shopping 14,000 Cheque Centre. 3. M/s. Janaki Stores 18,000 Cash 4. M/s. Ganesh 13,500 Cheque 5. M/s. Ajay Traders 20,000 Cheque Rahamundary: 1. M/s. Bora Brothers 18,750 Cheque 2. M/s. Kapoor & Sons 16,300 Cash 3. M/s. Rana & Brothers 19,750 Cheque 4. M/s. Raja & Sons 18,000 Cash Orders booked : Visag 1. M/s. Krishna Shopping for 65,000 Centre 2. M/s.Janaki Stores for 50,000 3. M/s. Ajay Traders for 47,500 4. M/s. Rana & Sons for 20,000 5. M/s.Prakash & Sons for 35,000 Rajamundry: 1. M/s. Hukum Chand & for 60,000 Sons 2. M/s. Paul & Sons for 50,000 3. M/s. Ramdas & Co. for 30,000 4. M/s. The Greatest Stores for 40,000 5. M/s. Jolly & Co. for 50,000SuggestionsI was able to secure very good orders from our customers. However, there are three customers of vizag –(1) M/s. Ramlal Seth Corner, (2) M/s. Babulal & Sons and (3) M/s. Sunder Stores, who are willing to give usbulk orders worth Rs. 2 lakhs provided the discount is raised by 5% above our usual terms. If we agree,orders can be collected from each. Please confirm it. Tow customers of Rajamundry – M/s Premlal and Sons and M/s.Prakash Chand and Sons havecomplained that our goods have not found market owing to defective packing and the subsequent damagecaused during transit. They want to know whether they can get fresh goods in exchange of those damagedgoods. I wait for your instructions.I find that the demand for our goods has been increasing very fast. The present supplies of our goods arenot sufficient to meet the increasing demand. A few more stockiest of good business standing may beappointed in Visag and Rahahmundry. BSPATIL 151
  • 152. Next ProgrammeTomorrow morning I leave for Hyderabad. Reply to this letter may please be sent to Room No. 10, sunderMansion, Hyderabad – 10NB : 5 Cheques are enclosed Cash sent by crossed Demand draft, as usual.Yours faithfullyModel : 210 Report on the need for computerization Allied Sales Company Ltd. (H.O. Mumbai) P.B. No. 230 Nagercoil. 629 001 6th June, 2002The Managing DirectorMumbai.Sir,Sub : Urgent need for computerizing the Accounts DepartmentAs you are well aware that our branch has achieved tremendous growth during the last two years. Thesales volume, number of customers, turnover, the staff of this branch etc., have doubled. The auditorsreport clearly shows this. The Accounts Department is over-loaded with more and more responsibilities.The present staff position is quite unsatisfactory. The Accounts Department finds it difficult to keepup-to-date records of purchases, sales, salary bills, remittances of amount, receipt of cash etc. Apart fromHead Office, we have three branches including this one. The other two branches were computerized lastyear. It is a fact that this branch is doing more business than the other two. Although the Head Office hasappointed additional hands in the Accounts Department, the staff are unable to cope with the increasingwork load. The staff in the department continue to work till late hours, yet fail to keep up the workup-to-date.The only way to overcome this situation is to computerize the Accounts Department. When it is done, itwill lead to a reduction of staff strength and at the same time we can keep up the records of everytransactions at our finger tips with the help of computer. In the long run it will be economical apart frommodernization.The proposal may please be given top-priority.Thank you.Yours truly BSPATIL 152
  • 153. Model 211 : Opening of Branch Brooke Bond Layout, Coimbatore – 641009 3rd March 2002The DirectorGandia Press Ltd.Madurai 625 002Sirs, Ref. Opening of a branch in CoimbatoreIn accordance with the resolution dated 18th December, 2001. I take pleasure in submitting a report uponthe suitability and desirability of opening a branch office in Coimbatore for publications.Existing position:From Coimbatore alone, our firm has been getting an annual business amounting to Rs. 35,000/-Figures for the last five years show a tendency of increase of our sale and printing Publications.We have received repeated requests from customers of this area and surrounding areas to open branchoffice at Coimbatore, so that parties can deal directly.Work done:I have the complete data on the subject from our office. The data were useful to me. By staying inCoimbatore. I visited several school institutions, local booksellers and markets. I had the clear suggestionsfrom many, and am in favour of opening a branch office in the city. The people wish to see the booksdirectly and buy them on the spot, without wasting time in unnecessary correspondence.Fact finding:A building near the Railway station is lying vacant and the rent will be Rs. 800 per month. I havecontracted the owner of the building. Who is ready to spare it on a rent basis for a period of 5 years. Mr.M.S. Nadar, a retired superintendent of M/s Jyoti Press is willing to act as the manager for our firm. Hissalary can be fixed at Rs. 5,000/- plus 2% commission on sales.Conclusion:I find that the conditions is very nice to open a branch. Mr. M.S. Nadar is an able hand to deal our business.Our initial expenditure will be less than Rs. 25,000 provided machines are transferred from the head office.Moreover, I am sure, the sales of our publications will increase, if such a branch is opened.If my opinion is acceptable, a branch may be opened before June 2002 Yours faithfully, SangaralingamModel 212 : Investigation regarding decline in sales Gram : Chopra CHOPRA & SONS ENTERPRISES (Washing – soap Manufacturers)No. Sales 71-72/47 Cantonment, Bazaar Street Kolkata – 1 th 10 Oct. 2001 BSPATIL 153
  • 154. Shri R.C. JainSales Representative29, West StreetAgra. 282 008Dear Sirs,We have been watching your reports of monthly sales sent by the Regional Manager. From the statements,it is understood that the sale of the washing – soap has been decreasing steadily for the last three months.If the decrease in sales goes on at this rate, we will have to face much difficulty to get a smooth runningof the establishment.We, therefore, entrust you to find out the cause of the decrease in sales and send your report to us withsuitable suggestions and recommendations in order to arrest the present undesired trend.Thanking you. Yours faithfully For Chopra & Sons Enterprises (Sales Manager)Model : 213 : Reply to the sales manager CHOPRA & SONS ENTERPRISES (Dealers in Washing Soap)H.O. CantionmentKolkata – 1 29, West Street Agra. th 20 Oct. 2001Dear Sir, Ref.: Decline in the Sales of washing – soap Detailed report with suggestionsIn accordance with your letter No. Sales 71-72-47 dated the 10th Oct., I have undertaken a careful study ofthe general trend of our business. I contacted the local dealers and collected the shortcomings in respectof our own products. The following are the results of my investigation. 1. There is a general depression in the trade. It has affected our business as well as others. 2. There is a flow of substitute products in the market. Owing to this, a high competition is being experienced at present. 3. Our advertisement policy is ineffective. Other firms are coming forward with other firms are adopting the best designs with attractive packing. 4. Our products are at a disadvantage, because of the ourmoded designs and packing But other firms are adopting the best designs with attractive packings. Under these circumstances I suggest the following remedies, which I hope, if put into practice, would give higher sales and will enable us to compete with similar products: 1. In order to overcome the present position, the prices may be reduced temporarily. A free gift of a soap box may be given to those, who buy at least six numbers of soaps. This may be continued until the sales boost up. 2. A more scientific way of advertisement should be adopted. The superiority and the usefulness of our products be brought in the minds of the public, through regular advertisement. Of course, BSPATIL 154
  • 155. there is a considerable expenditure, but this will, I am sure fetch a good sale. 3. In local exhibitions, our stalls may be opened to promote the sales. 4. The present design and shape of soap may be changed to a better design, with an attractive packing. 5. Frequent changes in the design and shape will also create a good impression in the minds of the people. I am sure, if these are put into effect, we can easily arrest the undesired situation, we are facing now. Thus, we shall create a favourable position in order to have the best sales in future. Your faithfully For Chopra & Sons Enterprises R.K. Jain Sales Representative REPORT OF SUITABLE PREMISESWhen a principal writes to a particular man in order to find out suitable premises for the purpose ofhousing a business, he will visit the building, which is to be rented our. First he demands a report,regarding the suitability of the premises available with all the facilities. The agent will send his reportregarding the advantages and the other facilities.Model 214 :XYZ Co.(Dealers in Stationery Materials)37, Raj Street,Agra 282 00112th October, 2001The Partners,Suresh Tradings,Chowk road,Lucknow – 226018Dear Sirs,With reference to your instructions contained in your letter No. 845 dated the 1st of October, 2001. I havepersonally visited the place, where the building in situated. The following are the comments regarding thesuitability of the building:The building, bearing No. 41 is very specious and was occupied by the Government of India for thepurpose of giving training to military personnel.The building has three large halls and twelve rooms with electrification and water – supply. The building issituated one kilometer from the Railway Station and half kilometer from the Bus Stand. All the rooms haveenough ventilation. Besides, the building is situated in the heart of the city. BSPATIL 155
  • 156. The rent will be Rs. 900 per month and if occupied by us, advance of Rs. 2,000 should be paid. Icontacted the owner of the building and he is glad to let it our on rent, to us. His written consent is alsoenclosed herewith.I am in full confidence that the building will be suitable in all respects. In order to set up a printing shop,no alteration of the building is required.If you find it suitable, please write on or before the 20th of Oct. 2001 so that I can book the sameimmediately. It will be better if you come personally and see the suitability of the location. BSPATIL 156
  • 157. Chapter XXI SECRETARIAL CORRESPONDENCEIn our day-to-day life, we come across many commercial associations. In almost all the companies orfirms or societies, there will be a person, called Secretary. The secretary, in a joint, stock company plays avital role in order to attain a smooth running of the firm. The secretary is a responsible official, who isconcerned with the general administration and management. In his day-to-day work, he has to face manyjobs assigned to him. He is the principal of other employees of the firm. He is wholly in charge of theco-ordinating work of the various departments, correspondence and records.The Secretary and the Shareholders The secretary is the principal of a company as well as the servant of the Board of Directors andshareholders of the firm. Shareholders in the real sense, are the proprietors of the company. He pays thehighest courtesy and consideration to the shareholders. He has to face and to deal with the requests ofshareholders. Except certain confidential mattes, all other important events such as, improvements,change of business, modification of internal affairs of incoming and outgoing directors, audit reports,dividend, change of capital etc., should be informed to the shareholders. In order to convey suchinformation the secretary has to write letters to the shareholdr4s. Generally information is not conveyedindividually, but passed to all simultaneously.The secretary also receives letters of complaint from the shareholders. In this case, the secretary has todeal with them tactfully and inform them that the company’s directors are taking such decisions in thebest interest of the company. Generally, shareholders’ complaints may be of dividend or the market-priceof shares. He has to deal with it very nicely. If there is any complaint of an arbitrary nature, it will be placedbefore the directors for decision.The Secretary and the DirectorsThe Secretary is the servant of the directors and he has to correspond to them. In many cases directorsmay be inexperienced or may not be acquainted with the affairs of the company, and in such cases thedirectors are to be guided by the secretary. In all matters relating to the management side of company,secretary looks after the legal side of the firm. Thus we find that secretary possesses a great power andauthority over the company. The letters of the secretary to the directors and the shareholders areimportant.Usually the secretary meets the directors in the Directors’ Meetings periodically. Sometimes some of theDirectors may be absent for the meetings. Then the secretary has to inform those directors regarding theproceedings of the meeting and the decision of the meetings. The directors may also inform the secretaryto add certain matters in the agenda to be discussed in the meeting. And this should be included then orwrite to particular directors regarding its weak points. In writing letters to the directors, secretary has toexercise a great deal of courtesy and consideration.His main duties are: (a) Arranging meetings of directors and shareholders, preparing of minutes etc. (b) Complying with legal obligation of the company (c) Keeping up of records of capital account, loans and carrying our business of the firm strictly according to the Articles of Association and Memorandum of Association. (d) Looking after the entire duties of the company and maintaining of establishment and account side of the firm. (e) Corresponding with the outside parties and keeping up proper records and supervising the work of the clerical staff. BSPATIL 157
  • 158. (f) Dealing with Registrar of Companies and sending out periodical reports and statements to him. Also corresponding with the Government offices as per Companies Act., 1956.Model 215 : Letter of AllotmentCarbolic CompanyNo………… Allot.Registered OfficeCarbolic House,Mumbai – 1.Shri / Shrimati …………….Dear Sir/Madam, With reference to your application dated …………….. for ………….. shares of Rs. …………… each inour Company. I am directed to inform you that …………… shares of Rs. ……………. Each are hereby allottedto you. Rs. …………… per share are payable on allotment and the details are given below:Amount payable on application at Rs. ………….. and on allotment at Rs ………… per share ………….. totalRs. ………..Amount already received on application Rs. …………….Balance due to be paid by you Rs. ……………..I request you to send the amount to us alongwith the letter on or before ……….. 2002 By order of the Board (Secretary)Model 216 : Cash Receipt issued by the Co. CARBOLIC COMPANY Carbolic house, Mumbai – 1 Received a sum of Rs. ……….. from Shri/Shrimati …….. for the above company towards applicationfee in favour of the allotted ………. Shares. Secretary/AccountantOffice StampModel 217 : Notice of the board meeting RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Kochi. th 15 December…………..Shri R.N. Bhasker, BSPATIL 158
  • 159. B.K. Trust,KochiDear Sir,A meeting of the Board of Directors will be held on Monday the 25th of December, 2001 at the RegisteredOffice of the Company at 11.00 A.M. to decide the programmes for the exhibition at Trivandrum. You arerequested to attend the meeting.Yours sincerely…………………….(Secretary)Model 218 : Reply to complaint about the non-intimation of Company’s affairsRajesh Trading Co.Mansion Street,Brooke Bond Layout,Kochi.25th December, 2001Mr. R.N. Wadia,123, Civil LineAlleppy.Sir, Received your letter of 15th December, 2001. It is much regretted that all letters sent to your formeraddress did not reach you. owing to the rush of work, the change of address has not been recorded in theregister. I assure that all future communication will be sent to you on the new address given by you.Please excuse for the inconvenience caused to you.Yours sincerely…………………(Secretary)Model 219 : Letters from a director, to fix days for meetingR.K. KumarTaj Hotel,Civil Line,Mumbai – 40001825th December 2001The Secretary,B.B. Company Ltd.Kolkata 700 051Dear Sir, Due to certain agent work, I have been touring this place and probably, I will be staying up to the30th of this month. I have not yet received any information of the next meeting of the Board. Therefore, Irequest you to intimate the date of next meeting at the above address. BSPATIL 159
  • 160. As I am likely to travel up to the end of January, 2002. I suggest that the date of the meeting maybe fixed and I may be informed of it well in advance, say one month. The chairman may please beconsulted about this and this matter may be included in the agents of the next meeting.Thanking you.Yours sincerely R.K. KapoorModel : 220 : Reply to the suggestion letter of a director Kolkata – 700 062 th 27 December, 2002Mr. R.K. KumarTaj HotelCivil LineMumbai – 400 018Dear Sir, In reply to your letter dated 25th December, 2001, I am directed to inform you that the nextmeeting of the Board of Directors of the company is scheduled to be held on Thursday, the 4th of January,2002, at 2.00 P.M. Your suggestion of informing the directors about the dates of meeting, in advance, was referred tothe chairman and the same is included in the agenda for the next meeting. Yours sincerely ………………… (Secretary)Model 221 : Invitation to a shareholder to the Board of DirectorsPrinters of Mysore Ltd,Mission road,Bangalore.27th February, 2002Shri K.P. Prakash,Bazaar Street,Mysore.Dear Sir, I am directed by the Chairman to get your willingness to accept the position of a directors of thiscompany in the place of Mr. P.K. Sen, who has resigned from the directorship. As a shareholder of the company for many years, you have a good knowledge of the affairs of thiscompany and you possess similar experiences. I, therefore, take the liberty to enclose the Memorandum ofAssociation and Articles of Association together with the audit report of this year. If you need furtherinformation, please write to me or ring up 3756. Yours sincerely BSPATIL 160
  • 161. (Secretary)Model 222 : Enquiry about dividend B.K. CHELLAM ENTERPRISES Chellam Street, Devanagar th 27 Feburary, 2002Mr. P.N. SethiMansion Street,Kolkata.Sir, I have your letter of 15th Feb. enquiring about the prospects of the company, and the dividend to bedeclared. The future of the company can be seen from the Directors Report and the Balance Sheet of thecompany. Moreover, the stock brokers will also be able to tell you about this manner Regarding the dividend of the company I am unable to state anything now. It will be decided at thenext meeting of the Board of Directors i.e. on 7th March. My position does not permit me to disclose moreinformation. Yours faithfully …………………. (Secretary)Model 223 : A letter informing the auditor of his appointment B.K. INDUSTRIES LIMITED K.B. Town, Kochi 24th March, 2002Messrs John & Johny,Chartered AccountantsKochi – 2Dear Sir, I am directed by the Board to inform you that you have been appointed as auditors of this companyup to the next Annual General. A copy of the resolution is enclosed for your perusal.Please confirm at your earlier. Yours sincerely (Secretary)Model : 224 : Letter requesting a Director to attend an important meeting. MARTING PVT. LTD. J. Nagar, Chennai th 30 May 2002Mr. Nikhil SunderVadapalani, BSPATIL 161
  • 162. ChennaiDear Sir, I have enclosed herewith the Agenda of the Board meeting to be held on 10th June, 2002. I amdirected to draw your kind attention to all the items of the Agenda. The first item of the Agenda relates tothe proposal to close down our factory at Bangalore. Looking at the reports of the past few years, weobserve that the factory has been running at such a loss that it hardly justifies its existence. Theaccumulated loss of the factory is about Rs. 10 lakhs. Therefore, there is a proposal to dispose the factory.The amount realized from the sale of the factory can profitably be utilized for modernizing our company inChennai. This proposal will be discussed at length at the Board meeting on 10th June.The Chairman has asked me to request you specially to remain present so that we may avail of your longexperience.Thank you Yours sincerelyModel 225 : Letter to a Director informing the first meeting of the Board. KUMAR TEXTILES LTD. Kaveri Mahal Bangalore – 560 001 3rd April, 2002Mr. Premchand,I.P. NagarBangalore – 560 002Dear Sir,I am glad to inform you that the first meeting of the constituted Board of Directors will be held on Monday,the 15th April at 10.30 a.m. to transact the following Agenda. 1. Election of the Chairman of the meeting 2. Election of the Chairman of the company 3. Appointment of Secretary and Auditor. 4. Approval of the common seal of the Company 5. Any other business 6. Any other businessPlease attend the meetingThank you Yours sincerelyModel 226 : Letter inviting a share holder to join the Board of Directors KRISHNA AND COMPANY T. Nagar Chennai 2nd June, 2002Mr. Premchand,T Nagar,Chennai BSPATIL 162
  • 163. Dear Sir, I am directed by the Chairman to ascertain your willingness to accept the position of a Director ofthis Company. Mr. john has been a Director of this Company since 1990. He is resigning from the Board onmedical grounds. His resignation takes effects from 15th June. As a shareholders of many years standing,you have an in-depth knowledge of the business of the Company. As per the Companies Act, any casualvacancy in the Board can be filled up by the Board of Directors at a meeting of the Board. The Board ofDirectors of this Company has decided to appoint you as a Director of the Company. I am enclosing acopy of the Company’s Memorandum and Articles of Association together with the latest Balance Sheet. If you need any further information, please write to me or ring up. I will be happy to receive your letter of consent.Thank you Yours sincerelyEncl: as aboveModel 227 : Letter of forfeiture of share CHAND AND SONS M.G. Road, Cochin 652 010 1st June 2002Mr. Premlal178/240 R.P. Nagar.Alleppy – 688 012Dear Sir, I regret to inform you that you have failed to comply with the notice sent to you on 1st May 2002 inwhich I stated that your shares were liable to be forfeited in case the call made in your shares was not paidon or before the date specified in my last letter. I am directed to inform you that in the meeting held on20th May, the 50 equity shares which were registered on your name, have been fully forfeited by theresolution of the Board of Directors. This is for your kind information Yours faithfullyModel 228 : Second call of share capital B.K. INDUSTRIES LTD. K.B. Town, Cochin th 26 March, 2002Sri P.K. John,Shoe Co. Mart,Cochin.Dear Sir, BSPATIL 163
  • 164. Under instructions from the Board of Directors of the Company, we have to remind you that a sumof Rs. 600.00 (Rs. Six hundred only) is due from you on 3rd March, 2002 on account of second call of Rs.100/- of 6 equity shares of this company. In order to facilitate the shareholders, the account section ofthis company will remain open till 8.00 P.M. up to the 28th of this month. Yours faithfully, …………………… (Secretary)Model 229 : Letter of loss of share certificate Cantonment, Gwalior, th 28 March, 2002The SecretaryB.K. Engineering Ltd.Bhopal.Dear Sir, May I inform you that I have lost the certificate for 200 preferences shares of your company allottedto me on 20th November 1995. I, therefore, request you to issue me a duplicate certificate for the share.The expenses incurred on the issue of a duplicate will be borne by me.Thanking you Yours faithfully R.K. SharmaModel 230 : Application for registration B.K. ENGINEERING COMPANY LTD. Palace Road, Kochi 2 25th January, 2002The Registrar of CompaniesTrivandrum.Sir,We intend to form a new company under the title of MESSRS RAMU PVT. LTD. The proposed names of theChairman, Directors and capital amount to be collected etc. are in the enclosed proforma. The necessaryfee is also sent herewith. Apart from this, the Memorandum of Association is also enclose for your decisionon this matter. Your faithfully ……………………. (Chairman)Encl : as aboveModel 231 : Circular inviting application for shares B.K. CHELLARAM PVT. LTD. Netaji Subhash Roac, BSPATIL 164
  • 165. Kolkata 26th March, 2002The shareholders,Sir,With a view to raise funds for the extension of our factory, the Board of Directors have decided to issue1,000 shares of face value of Rs. 100/- each, the details of which are given below. 1. Rs. 10/- per share along with application to be remitted on or before 16th April, 2002 2. Rs. 30/- per share to be remitted on or before the 1st of May, 2002 3. Rs. 40/- per share to be remitted before 14th May, 2002 4. Rs. 20/- per share may be remitted as and when called for. The share certificate will be issued within two months from the date of allotment Yours sincerely ……………………….. (Secretary) Chapter XXII IMPORT TRADE CORRESPONDENCEEvery country needs the help of other countries to meet the requirement of products, which are producedby it. What is produced in one country may not be produced in another. Moreover, no country in the worldis self-supporting. Predominantly, India is an agricultural country, and now it is fast developing industrially.Even then manufactured goods are being imported from other countries. Every year our country importsand spends several cross of rupees against goods. Thus the import trade of a country is an importantbranch of commerce.Agencies who undertake the supply of goods 1. Individual merchants of Joint Stock Companies import goods directly from other countries. 2. The manufacturers of certain products themselves, will open their branches or agencies in India and Import goods to be supplied to the Indian customers. 3. Commission agents, also are buyers of imported goods. These commission agents, after collecting orders, place a bulk order with foreign countries. They purchase goods on their own name and supply to parties under their own invoice.Enquiries and quotationsA customer who wants imported goods, may have rare occasions to have enquiries and quotations ofcommodity required, because intermediaries cannot get full information about the goods in advance.Moreover, the agent of firm may try to purchase the goods in the cheeped market. However, if a customerwants details regarding quality etc., in advance, he can obtain them by writing to the country. In thequotations, full information can be had. Here also, if the purchase is on credit basis, the foreign seller willhave enquiries about the financial position of the importer through bank or any other firms.Enquiries and quotations may often be made by codes, in order to keep privacy. Sometimes counter offeralso takes place, and finally the importer fixes with any firm and places order to be complied with.After the receipt of the indent or order the exporter from a foreign country proceeds to execute the order.if it is an agency only, the goods are arranged to a convenient place packed carefully and as per theinstruction of the importer, shipped to the countries, where they have to be sent. After sending thosegoods, all the documents such as invoice, bill of lading, insurance receipt etc., are forwarded to thepurchaser by separate mail. BSPATIL 165
  • 166. After getting the shipping documents, he is entitled to take the delivery of goods as soon as the ship inwhich the goods are sent arrives at the port. The purchaser also undergoes certain formalities beforetaking delivery of good clearance such as custom authority, unloading etc. The delivery order or the bill oflading, endorsed by the exporter is given to the port authorities with the signature of the importer, torelieve the goods. He has to clear all duties and other charges to relieve the goods. He has to comply withthe formali8ties of clearance. Then only he has the right to possess the goods. If the customers facedifficulties in clearing the goods, all the work can be entrusted to the clearing agents, who in their turnclear the goods and charge a little amount for their work.Model 232 : Letter of enquiry RAJU PHOTOGRAPHIC MANUFACTURING CO. Harison Road, Kolkata 20th March, 2002Messrs, Roin & Windson Ltd.London.Dear Sirs, Mr. Black of the Carbolic Company of India has recommended to me your firm as manufacturers ofhigh grade photo films, enlarging machines, etc. Mr. Black has also supplied me a copy of your latestcatalogue and price lists meant for wholesale purchase. I would like to purchase one dozen photographic enlarging machines and one number of hearingmachine as per prices quoted in your catalogue of November, 2001 on a trial basis.I feel great pleasure to inform you that may firm is one of the largest importers of photographic goods inthe country. If your product finds a good market here larger order will be placed with you.In order to know my financial status. I give below two addresses, with whom I have been having businessduring the past six years. 1. Messrs, Halex Pvt. Ltd. Palace Road, London E.C. 2 2. The Bank of Kolkata Kolkata – 2 Yours truly For Raju Photo Manufg. Co.Model 233 : Letter taking up a reference ROBINS & WINDSON LTD. London 10th April, 2002Messrs, Halex Pvt. Ltd.Palace Road,London E.C. – 2Sirs, Messrs, Raju Photographic Manufacturing Company of India would like to enter trade relations withus and they have given your name as a reference. BSPATIL 166
  • 167. We shall be obliged if you would give us in confidence, a report relaing to business reputation andcreditworthiness of the firm. Will it be safe to grant them a credit to the extent of Rs. 5,00,000.Thanking you Yours faithfully For Robins & Windson P.K. Robins (Sales Manager)Model 234 : A letter of favourable reply Halex Private Ltd. Palace Road, London B.C. – 2 13th April, 2002Messrs, Robinson & Windson Ltd.London.Dear Sir, In response to your letter of 10th April, 2002 regarding the financial status of Messrs RajuPhotographic Manufacturing Company, we are glad to inform you that our business relations with them aresatisfactory for the last five or six years. We have always found them prompt in payment. Therefore, werecommend that the firm is worth to be granted a credit for more than you have suggested.Yours sincerely,For Halex Pvt. Ltd.Model 235 : Asking for agency INDIAN BOOK SELLER Mansion Palace Mumbai – 1 th 30 June, 2002The Technical Book Centre,GermanySirs, We are interested in representing in this country for foreign technical books, particularly wirelessand television books. We shall be glad to act as sole agent there on commission basis provided you areinterested in marketing your books over here. We have much experience in the field, and we have been dealing with England and Japan for thelast ten years. We find that there is a great demand for wireless, television and teleprint books. We shallapproach the government of India in order to get permission to import your books. If your favour our proposal please send us without further delay the terms and conditions ofbusiness along, with literatures and samples. Our references can be had from the Book House, Germanyand Brooke Bank Ltd. of Germany. We shall be grateful for your early reply. Yours truly. BSPATIL 167
  • 168. For Indian Book SellerModel 236 : Letter of accepting agency ROBINSON & WINDSON London 30th April, 2002Messrs, Raju Photographic Manufacturing Co.,Harison RoadKolkata.Dear Sirs, We are glad to receive your letter of 26th March 2002, and thank you for its contents, which we havenoted with interest.We accept your agency for the photographic products of our. Our terms and conditions are as follows: 1. 10% commission will be allowed to you on sale proceeds up to £ 5,000/- and 12% commission on exceeding amount. 2. Our contract will be valid for a couple of years. 3. There must be guarantee of purchasing goods worth £ 5,000/- per annum 4. Half of the advertisement expense will be met by us. 5. Bonus of 1% on net sales will be given to you every year. Please let us know whether the above said conditions are acceptable to you. AS soon as we hearfrom you, we shall proceed further in sending the prescribed forms to be filled in by you. Thanking you. Yours sincerely, For Robinson & Windson Ltd.Model 237 : Accepting an agency TECHNICAL BOOK CENTRE Germany 9th January, 2002The Indian Book Sellers,Mansion PalaceMumbai.Sirs, We are glad to receive your letter dated the 9th Dec. 2001, and consulted our partners. We are allglad to extend the agency to your firm. The latest price list along with illustrated literature and freesamples of books on wireless, teleprint methods, etc. (12 in numbers) is sent today by separate mail. Weshall grant you 20% commission on net sales. All the bills of purchase shall be remitted to us within onemonth from the date of receipt of the books by you.Hope to hear from you; the books are ready for dispatch. Yours truly, For Technical Book Centre BSPATIL 168
  • 169. Model 238 : Intimation of goods arrival JOY TRADING COMPANY Lahore Street, Mumbai – 400 018 10th Jan. 2002Messrs. John & Mathew Ltd.Palace Road,NagpurSirs, We have been informed by the local agents of Importing Association that the steamship “IndianSoil” is due in Mumbai on 15th January, 2002 and your demanded goods will be shipped in that steamshiponly. Please, therefore, be in touch with the Dailies, in which the information of the steamer can be had Yours sincerely For Joy Trading Co. BSPATIL 169
  • 170. Chapter XXIII EXPORT TRADE CORRESPONDENCE From our country goods such as, raw material, textile materials, medicines, tea as well as othermanufactured goods are exported to foreign countries from where there is a demand for such goods.From statistical data, we can see that our trade with foreign traders comes to several crores of rupees. As in the importing trade, export is also conducted through firms or companies or throughintermediary agents. Indian manufacturers may contact firms directly or through the intermediaries and tryto know the quantity of goods they need. When a firm is satisfied with the goods of Indian manufacturers,direct orders are received on the prescribed specifications and good are sent to them regularly. As described in the earlier chapter, if both the parties are satisfied with the terms and conditions ofthe trade, the exporter proceeds to execute the order received. Clear instructions from the foreignimporters as to the quantity, quality, price, package, duty, insurance, etc. are received. After the goods are carefully packed and marked as per instructions of the importer, the goods willbe made ready to be dispatched. The package is also done with utmost care, so as not to break in transit.A serial number will be given to each package, so that the shipping authority or the importer of goods caneasily verify his goods form the lot. Along with the number, the address of the importer is also seen on thepackages. Since there are many shipping companies, the exporter may try to have quotations of freightcharges and select the steamer, in which he has interest to send his goods.Procedure of export 1. The goods will be packed, market and numbered and the size and weight are taken. These particulars are communicated to the shipping company. 2. The date and shipping vessel are known. Then the goods will be sent to the shipping authority with necessary documents and details of the goods, as to their number, shape, identity mark, weight, etc. The authority will give a receipt for them. 3. A bill of lading (B/L) is prepared and obtained from the shipping company. The bill of lading is an acknowledgement of the shipping company, stating that they have received the goods in their custody to deliver to a particular party, on conditions known in the exporter at a specified place convenient to the importer and the probable date of reaching the port. 4. Insurance is arranged and proper charges are paid by the sender. This may be included in the bill or sent separately along with the bill of lading. 5. Actual bill will be sent to the party. 6. The last stage is that the bill along with all documents is forwar4ded to the importer against payment or as per agreement.On the arrival of the ship, by producing the B/L the particular goods will be delivered to the party. Thenthe goods will be disposed of, after the importer meets the formalities as per rules.After the goods are sent, the exporter takes steps to recover the amount of the invoice from the party asthey have arranged earlier, a bill of exchange can be drawn or credit can be had for presenting to the bank.All these can be done as per agreements of parties concerned. BSPATIL 170
  • 171. Model 239 : Letter placing order with local firm MUMBAI EXPORTS CO. LTD. 478, T.N. Street, Mumbai 8th Dec. 2001.Messrs. Arun EnterprisesMumbai – 12Dear Sir,As per the telephonic conversation we had with you today, we pace the following order to be executed onor before 12th December. 1. Absorption Wave Meter 330 MHL 1 gross 2. Pulse Oscilloscope 90 MHL 1 gross 3. Electronic Switch 300 MHL 2 grosses 4. Inductance Bridge with frequency generator 2 grosses 5. Cable Fault locator 1 grossThe order is placed as per your quotation dated the 6th Dec. Please pack carefully, as these are to beexported to Australia on the 14th of Dec. Our representative Mr. Sharma will be visiting you in order toverify the working conditions of each item. Please give him all facilities. If there are any problems, dial4466Thanking you Yours sincerely For Mumbai Exports Co. Ltd. ……………………………….Model 240 : Asking for agency WILSON & PARTNERS London th 9 Dec. 2001Messrs, Rajaram Enterprises,Cloth Merchants,Church Road,Agra.Sirs,About a month back, an exhibition of Indian sarees and carpets was held in Agra and your firm wasdisplaying goods. Our representative Mr. White who happened to visit your stall in the exhibition centre on2nd November, 2001 has recommended that the quality of the cloth is really superb. So please send us byreturn of post the price list and illustrated catalogue of sarees and carpets. Now there is a demand forcarpet of Indian make.First, we shall send order for carpets on a trial basis. If your terms and conditions are reasonable, we shallsend more and more orders. Kindly let us know whether it is possible to execute the orders within a monthfrom the date of the receipt of the order.We await an early reply BSPATIL 171
  • 172. Yours truly For Wilson & PartnersModel 241 : Sending goods RAJARAM ENTERPRISES (Cloth Dealers) Church Road, Agra – 282 002 25th Jan. 2002Messrs. Wilson & PartnersLondonSirs, The bill of leding and insurance policy for the consignment of carpets are sent herewith. The shipS.P.101 left for London from Mumbai yesterday noon. The carpets have been specially manufactured tosuit the London market. We hope that you will make every effort to sell them early. Please credit theamount of the bill after deducting 10% communication to the National Bank, Landon. We trust that the goods will reach you in good condition as per specification.Thanking you, Yours sincerely For Rajaram Enterprises ……………………………Encl : as aboveModel 242 : Letters to branch office RAJU EXPORT COMPANY Mount Road, Kochi -2 th 9 December, 2001Messrs. Raju Sales Enterprises(Indian Branch)Singapore.Sirs, Motor cycles of 3.5 horse power have been received by us today in perfect condition and the samehave been distributed. Please send a dozen or two of motor cycles of 2.5 H.P. in your next consignment. We hope that you might have by now received the transistor radios sent b y the “Ocean Queen “.The transistors will be arriving within two weeks. Now the transistor company have decided to adopt thelatest design and colours of various types. On a trial basis three transistor radios are being sent today bythe R.S. Steamer and they may be kept for demonstration purposes. The literature is sent by separate AirMail Post.Thanking you Yours sincerely Fir Raju Export Co.. ………………………… BSPATIL 172
  • 173. Model 243 : Explaining incomplete consignment SHEEPARD BELL LTD. Kolkata – 700 017 11th December, 2001The Big Sounders Ltd.Nottingham.Sirs, We have pleasure in sinding the bill of lading and the invoice for £ 4,526 for the goods sent by the“SS Empress”. Please note that we were able to ship only 20 cases each containing 10 transistors. Your demandwas for 300 radios. The company could not supply the full quota, because of some internal trouble, whichaffected the production. However, the company hopes to supply the remaining within a month. We are enclosing a statement of account excluding the bill for the present consignment andrequest you to credit the balance at the bank as early as possible.Thanking you. Yours faithfully, For Sheppard Bell Ltd. ………………………..Encl : as aboveModel 244 : Complaint PARKINSON LTD. Mumbai – 400 018 11th December, 2001Messrs. Strong & Aston Ltd.Landon.Dear Sirs, Our London representative has written to me stating that you have complained about the goodssent to you in the last consignment. The goods had been backed and sent to you strictly according to yourinstructions and specifications of order. if the goods do not tally with your order, you are at liberty to sendthem back to us and we will bear all the expenses incurred by you in this connection. Please verify the original order and send your report to us by return of post. Yours truly, For Parkinson Ltd. ……………………… BSPATIL 173
  • 174. Chapter XXIV WRITING OF MINUTESThe agenda of a meeting is written in the form of items to be discussed at a meeting, while minutes arethe official records of business transacted at a meeting. The duty of noting minutes falls on the secretaryof the firm or association or social body.The members of a joint stock company are called – its members or shareholders. By elections, a fewmembers are selected in order to manage the business, and these elected or appointed members areDirectors.The following types of meeting are held by a joint stock company: 1. Directors’ Meeting. 2. Shareholders’ Meeting a. The Statutory Meeting b. Annual General Body MeetingThe most important meeting so far us the shareholders are concerned is the Annual General Meeting. ThisAnnual General Meeting is held at the end of every accounting period.According to the Companies Act., every company must maintain books properly numbered and mustrecord therein the minutes of the proceeding of every meeting of the company within w0 days. Every pagemust be signed with date. The minutes must contain a fair and correct account of the proceedings. TheChairman possesses absolute discretion to include or excluded any matter in the minutes.Minutes are the records of proceedings and require careful writing of the same. Minutes must be of aprécis model. The Secretary, who writes the minutes in the book, must have good command over thelanguage, in which he writes. If he is the master of the language, (in which he writes the minutes) he willbe able to write briefly and precisely. Writing of minutes should not be delayed. As soon as the meeting isover, he should write in the books. Hints to write minutes 1. Nature of the meeting with place, date and time will be the head – line 2. Serial number to each meeting will be given 3. The minutes must show the names and status of members who attended 4. Whenever a letter is discussed in the meeting, it should appear in the minutes 5. Minutes must be as short as possible 6. Unnecessary discussions and superfluous words should be avoided 7. If any resolution is passed by the majority, the number of those in favaour of and those against the resolution should be recorded. 8. Before writing the minutes in the minute-book the matter is properly corrected. It is better, if the original minutes are taken as rough. After doing corrections, if any or approved by the Chairman, the matter can be copied in the minute-book. 9. Main points of discussions and resolutions should be clearly recorded. 10. Any important item discussed, will be writer in the margin.Model 245 : Minutes of the Annual General Meetings of the Shareholders of …………… Company heldon …………. In the Registered office of the Company. No. Particulars : Details of minutes 1 2 3 BSPATIL 174
  • 175. 1. Notice of meeting : The Secretary read the notice convening the meeting. 2. Auditors’ report : The company’s auditors John & Co. One of the auditors read the audit report. 3. Director’s report & accounts : With the consent of the Directors, both the reports were circulated, and taken as read. 4. Chairman’s address : The Chairman addressed the meeting with the details of the present position and the prosperity of the company. He pointed out that the company has a Future of the firm good future and the production has to increase year by year. He replied to many questions raised in the meeting. Seconded by Sri …………….. the report of Approval of reports auditors & accountant were approved. 5. Dividend : The Chairman put forward the question of dividend and welcomed questions. He replied them. The motion of the Chairman seconded by ..…..Approved of ……..% of dividend on ……………… shares and the distribution date was fixed on …… shares and the distribution date was fixed on …………….. Reserve of the account put before the meeting were seconded by Sri …………. After answering some questions, the reserves were approved. 6. Company’s auditors (Shaw & : On the motion of the Chairman Shri …….. seconded Co.) it ant it was unanimously resolved that M/s. Shaw & Co. be appointed. 7. Election of director : Sri Black proposed Sri A.K. Naidu as director and Sri Mathew seconded. Sri Naidu was elected as a director of the company. 8. Remuneration : The remiuneration fo auditors raised by a member was put to motion and finally fixed at Rs. 3,000/- p.a. 9. Vote of thanks : The meeting concluded with vote of thanks by a shareholder. ...………………………. Signature of Chairman Dt……………………….Model 246 : A Specimen page of an Agenda Book with Chairman’s noteAGENDA for Board Meeting to be held at the Registered Office of the company on Saturday, the 31st ofMarch .............. at 5.00 P.M.Present Mr. P.K. John (in the chair) Mr. M.M. Mathew Mr. M.L. Ganesh Mr. N.R. Dubey Directors BSPATIL 175
  • 176. Mr. B.N. PandianIn attendance Mr. R.S. Dass Item Nos. Particulars Chairman’s notes 1. To read and sign minutes of the Board Approved and signed Meeting held on 1st March ................ 2. To submit list of Accounts for payment Accounts approved, cheque ordered and sign cheque in full settlement for Rs. to be signed 2000 3. To submit transfers of shares Transfer approved new certificates num-bered from 401 to 410 and sign No. 6001 to 6010 ordered to be certificates in favour of transferees. signed and sealed. 4. Appointment of agents for the Japan The agreement to appoint Messrs. Region Harry & Company of Japan was produced and it was resolved and approved. 5. Next meeting To be held on 17th April at 2.00 P.M. (Chairman’s Initial) Model 247 : Minutes of the Board Meetng held at the Registered Office of the company on 31stMarch .......... at 5 P.M.Present Mr. P.K. John (in the chair) Mr. M.M. Mathew Mr. M.L. Ganesh Mr. N.R. Dubey Directors Mr. B.N. PandianIn attendance Mr. R.S. Dass 1. Minutes : The minuites of the Board Meeting held on March ................. were read, approved and signed by the chairman. 2. Accounts for payment : The Secretary submitted the accounts for payment. A cheque for the amount of Rs. 2,000.00 be drawn and signed 3. Passing of Transfer: : The Secretary submitted transfer deeds numbered from 401 to 410 (both inclusive) and they were in order. it as resolved that the said transfers be and hereby approved and new share confiscates numbering from 6,001 to 6,010 be signed and sealed. 4. Appointment of agents : The draft agreement with Messrs. Harry and Company of Japan was produce and it was resolved and approved. 5. Next meeting : It was decided to hold the next meeting of the Board at the Registered Office of the company on Tuesday, 17th April ........ at 2.00 P.M. Read, approved and signed S/d. P.K. John BSPATIL 176
  • 177. R.S. Dass, 31st March...............Specimen agenda of a statutory meeting 1. To read the notice convening the meeting. 2. The Chairman to explain that the meeting is held in compliance with section 156 of the Companies Act, 1956 3. To read the Statutory Report 4. The Chairman to inform the members that a list of members has been placed on the table and that any member could inspect it during the continuance of the meeting. 5. The Chairman to explain the position of the Company and to make a statement of the Statutory report. 6. Vote of thanks ...... ChairmanSpecimen agenda for an extraordinary meeting 1. The Secretary to read the notice convening the meeting. 2. The Chairman to move that the following be substituted for Article 28 of the Articles of Association of the Company, the directors shall not be less than three Shri ................. to second the motion. 3. The Chairman to move that 40,000 Preferential shares of Rs. 100/- be converted into ordinary shares for Rs. 40,000/- which shall be transferable on the usual form in any sum of Rs. 100 or a multiple thereof. Shri ............. to second the motion. 4. Thank the shareholders for attending the meeting BSPATIL 177
  • 178. Chapter XXV LETTERS TO EDITORS AND COMPLAINTS TO PERSONNELLetters to Editors We live in an age of democracy. Public opinions play an important part in the shaping of thepolicies of the Government. People desirous of giving their strong feelings on various issues – public needs,grievances, policies of departments, suggestions etc., are prompted to write letter addressed to Editors ofNewspapers or Journals. Almost all the newspapers and magazines set aside a special column entitled“Letters to Editor” or “From our Readers” or “Reader’s view” etc. Through these columns an opportunity isgiven to the public to express their views for or against the Government and thereby new papers ormagazines play an important role. A letter to the editor is written on matters concerning the public orpublic interest on various current problems. It is through this column that one can draw attention of thepublic and win sympathy for a particular issue that requires attention or action of the Government or someauthorities. Hints On Writing (Letters to Editors) 1. It must be brief, clear, concise and courteous. 2. “Sir” is the proper form of salutation 3. “Yours truly” is the proper form of complimentary close 4. The aim should be to arouse the reader’s interest and persuade those in power to take suitable action. 5. It must be related to current topics and have common interest to the public 6. Start the letter by giving clear reference so that readers can easily grasp the purpose 7. Personal attacks, insulting or unparliamentarily words must be avoided 8. Newspapers or magazines suffer from want of space. So such letters must be brief. 9. Use simple language so that even a layman can understand it. 10. If you do not wish your name to be published, you may write as “One who knows”, or “An interested person” or “A sufferer” or “A citizen” etc. in such case, a covering letter should follow with full address. Otherwise, such letters will not be entertained. 11. Start and complete your argument plainly, directly and in an orderly way. 12. Such letters must have place and date on the left side bottom corner.Complaint to PersonnelComplaint letters are generally addressed to an individual or an officer of any department in order to putthe trouble before them. In the letters of complaint, the full address is usually found. The complaint lettershould also carry the possible remedies apart from the complaints. It should be remembered that thecomplaint is a genuine one.A few examples are given below:Model 248 : A sad InterviewSir, I write this to draw the attention of the authorities concerned to the sad affairs faced by me andmany others in connection with an interview. An advertisement appeared in your newspapers on 9th Dec. 2001 calling application for the posts ofOverseas (Civil Engg.) in the grade of Rs. 2,500 – 25,4,000. I along with my friend applied for the post byremitting Rs. 50/- as application fee Most of us have the prescribed qualifications. The probable numberof such applicants may not be less than 40 from this area. On 27th January 2002, I got an interview callfrom the Personnel Officer of that firm asking me to appear for an interview on 2nd February. I went to BSPATIL 178
  • 179. Chennai from Tirunelveli in order to attend the interview, meeting all expenditures from my own pocket.Several others from Madurai. Nagercoil and Mysore also came. We all went to the office concerned andenquired about the interview on the date fixed. But he regretted to inform us that the said interview hadbeen cancelled. The Personnel Officer who sent us the calls was absent. We met the Senior PersonnelOfficer and informed him of our difficulties and sufferings. We were not allowed to meet the General Manager to represent our matter. The authorities had nocourtesy even to hear our grievances. Some of us received the cancellation letter of the interview only after we returned to our nativeplaces. These cancellation orders bore the date 1st Feb. Letters reach far away places only on the third day. Will the authorities be pleased to enquire into the matter?Tirunelveli,5th February, 2002 As affectedModel 249 : Complaint about worms in water supply Sir, I would like to bring to your notice a serious and dangerous matter which needs your immediateattention. For the last few days, tiny and hardly visible worms are found in the pipe water supplied on thisarea. The public is very deeply worried and there is considerable anxiety everywhere. A few residents ofthis area have represented the matter in person to the Municipal authorities. But no satisfactory relief hasbeen effected. Because of the supply of unpurified water, there is the danger of diseases spreadingamongst the public. Therefore, I request you to take immediate steps to make arrangement to supply good water toprevent danger to public life. Before putting the water into tap, it may be examined by the healthdepartment.Madurai21st Feb. 2002 Yours truly A SuffererModel 250 : Complaint about a cleark of the Electricity DepartmentA.S. Nadar 146, Ramanathan Street, Nagercoil – 620 001 1st March 2002The Accounts Officer,Electricity Department,Nagercoil – 629 001Sir, Kindly permit me to bring to your notice the inconvenience experienced by the public on account ofcash remittance for the electricity bills. On the 12th of the previous month, I went to your office particularly to the cash receiving section toremit the amount of my electricity bill amounting to Rs. 120.40. The counter usually opens at 9.00 a.m.and closes by 2.30 p.m. I went to the office at 8.30 a.m. and at that time the cash section was not opened. BSPATIL 179
  • 180. In common with others, I stood in the queue calmly. Almost all of us were office goes. Our duty time isfrom 9.30 a.m. onwards. We were all in a hurry to go to the office. The clerk of the cash receiving section leisurely arrived and opened the room at 9.05 a.m. Then heproceeded opening his almirahs and table drawers in search of the receipt books and pencils, and spendnearly 20 minutes. Many of us requested the clerk to accept the cash soon. But he said, ”No. If you havecomplaints go to the Resident Engineer. I am punctual in my duties.” His duty starts by 9.00. but starts hisofficial duties only by 9.30 a.m. While the people are standing in the sun he is seated under the cool shade of a fan. By arguments,we would be more late to the officer and, therefore, stood calmly. When my turn came, I had the bill withRs. 122.00 against the actual amount of Rs. 120.40. he refused to accept it and said he had no change. I request you to go round the section in the starting hours of duty time, which will prove mystatement is true. As such I suggest, you adopt good devices and means to ensure quick collection andprovide facilities to the public. Your truly, A.S. Nadar.Model 251 : Future of English Chennai 10th March, 2002Sirs, While many educationists are agreed that English must be the medium of higher education, a fewhold the view that English is most useful to improve the efficiency of every worker. We should not considerEnglish as a foreign language, because we have been handling the English language for many years. Thereare many Indians who have really mastered the language better than the English people themselves. ManySouth Indian leaders as well as the North Indians argue that English should be retained as the officiallanguage. The usefulness of the language is being realized in greater measure ant it is seen that thenumber of English medium schools is increasing. Majority of the parents seek admission for their childrenonly in the institutions where English is the medium of instruction. By rejecting the study of English thepresent atmosphere will invite intellectual bankruptcy. English is not learnt by everyone withoutcompulsion. English must be the medium of instruction till a time comes when Hindi. Will become a powerfulweapon of thought. There may be arguments in favour of and against this issue of language. It will takesome more years for all the people of India to embrace the Hindi language in the place of English as themedium of instruction. Of course Hindi is our National language.Chennai10th March, 2002 Yours truly A CitizenModel 252 : Complaint of electricity failuresB.K. Area,12th March, 2002To,The Superior,B.K. Area, Sub-stationSir, BSPATIL 180
  • 181. Your kind attention is invited by the undersigned to the frequent failures of electricity. During thelast one week we have experienced much trouble and inconvenience due to the failure of electricity. It isalso seen that electricity fails more often at night than at day time when our children have to read andwrite. Some of the residents of this area have already approached you with the same matter. We regret tonote no action has been taken from your end so far. Last night also there was electricity failure for morethan half an hour. This is injustice to the students, who are having examinations at present. When thelights fail our children lose their interest in studies. We wonder whether there is none in your sub-stationto look into the repairs of the sub-station. This failure of electricity does not happen in the neighboringareas. So here the failure is due in some defects in this sub-station. We, therefore request you to attend to this matter immediately and take all steps to get the repairdone in order to avoid further failure of current. Yours faithfully (R.S. Patel) For the resident of B.K. AreaModel 252 : An Unhealthy PracticeSir, The employment situation in the country is quite bad and many qualified people with engineeringdegree or MBA are paid a pittance. Adding insult to injury, many establishments, particularly someself-financing colleges, demand the original certificates of the employees and retain them as a bargainagainst their leaving at short notice. A person is stuck up with an organisation due to his or her certificates not being available forpresenting to another potential employer. I think it is immoral to hold the certificates of people againsttheir will and I am sure it could be illegal as well. Public spirited legal luminaries and people who fight for citizens, rights should raise the issue andit should be made a punishable offence to hold the certificates of employees. Certainly a Xerox copyshould suffice any purpose. Many Gulf countries, I am told, are taking the passports and other travel documents of employeeswhich places them in the position of a sort of bonded labourers. But it is a shame that in our country one’s documents are retained against will making him a bonded labourer.Visag13th June, 2002Udith Kumar NarayananModel 254 : Replace Soiled NotesSir, Printing and issue of new one, two and five rupee notes were stopped several years ago with theresult that the old notes are still in circulation as legal tender, although much they are soiled, damaged,mutilated and pieced together by adhesive tapes beyond recognition. While sufficient numbers of one, two and five rupee coins minted mostly by foreign countries arereportedly readily available to replace the old and soiled notes, no applicable headway has been achievedin the process. As this replacement process is restricted to Chennai only as of now, it would do a world of good tothose in other places in the districts if SBI opens similar special counters limiting to some of their branches BSPATIL 181
  • 182. and issue coins in exchange of soiled notes to the convenience of all concerned and the end of circulationof soiled notes achieved quickly.CoimbatoreJuly 10“An interested”Model 225 : Regulate Mini BusesSir, It is a welcome decision for having permitted private owners to operate mini buses on certain notesin Tamil Nadu. Indeed it help case the overcrowding in buses. But, it has some drawbacks. The mini bus Operators mostly do not issue Rs. 1.50 tickets to the passengers. They are issuingonly Rs. 2.00 tickets, which deprives the right of the passenger for short distance travel with minimumcharges. the authorities concerned should intervene in this matter and make them issue minimum chargetickets. Moreover, in some mini buses, the tickets issued to the commuters do not have the names of theoperators. Only the rate of the tickets is printed. It is needless to point out that this would definitely leadto corruption and neglect the passenger’s right to appeal at appropriate forums for redress of her/hisgrievance, if any after the journey. At both termini, the mini buses are parked for long hours, which hinders the traffic very much.Chennai15th July, 2002 Nikhil SunderModel 256 : Footboard TravelSir, It is rare to see town buses in Nagercoil sans passengers on the footboard. Invariably, most ofthese passengers travel ticketless. Busses are managed by only a single conductor even during peak hoursand footboard travellers avoid him by changing from the footboard to the front at the rear. If the StateTransport Corporation appoints two conductors for each bus at least during peak hours it can eliminateticketless travel to a great extent.Nagercoil Sunder R.Model 257 : Uniform Sales TaxSir, The Government is implementing several innovative schemes in the area of sales tax – theintroduction of self assessment and abolition of check post – to mention a few. These schemes areintended to benefit traders. The system is also being introduced to prevent evasion of tax, mainly bymanufacturing units which want to sell their products at cheaper rates through dealers. Since all Stateshave adopted the uniform sales tax system, the manufacturing units must be forced to deduct sales tax atthe time of dispatch of goods and remit the amount to the respective States. Traders can thus be rescuedfrom harassment at the hands of ST officials by way of raids. V.P. VinayagamChennai20th June 2002Model 258 : Wind EnergySir, BSPATIL 182
  • 183. Among the renewable energy sources, wind is the oldest and most proven one. In our country therewas a boom during 1994-95 and 1995-96 when 235MW capacity additions to wind energy installationstook place. But subsequent years saw a steady decline. On the other hand, there has been a tremendousgrowth in wind energy in Germany, Spain, and Denmark. The high growth in Germany (which occupies topposition in the world) is based on a premium payment for electricity produced by wind turbine generators.Within the last few years, Spain has become a potential market for large scale development of wind power. A common observation from all of these new markets has been that a guaranteed rate for windenergy creates more stable market conditions compared to project bidding. Also guaranteed energy ratescreate better conditions for the establishment of a local manufacturing industry. The tremendous growth in wind installations in Germany (1571MW), Spain (708 MW), the U.S. (500MW) and Denmark (292 MW) in 1999 proves the global importance given to wind. Incidentally only 112 MWcapacity wind installations took place in our country in 1999. It is time the Ministry of Non-conventional Energy Sources (MNES) in consultation with differentState Governments evolved a sound policy with assured market for purchasing the wind energy produced. Sunder S.Salem25th Aug. 2001 BSPATIL 183
  • 184. Chapter XXVI INSURANCE CORRESPONDENCEInsurance is a contract by which the insurer (Insurance Company) in consideration of the payment of a sumof money called premium, agrees to pay a specified sum to the insured on the happening of a certainevent. The insurer undertakes to indemnify the assured for the consideration in the form of money(premium).Life Insurance is different form fire insurance and marine insurance. Formerly the life insurance businessin India was in the hands of Joint-stock companies. by Life Insurance Ordinance of 1956, the managementand control of the business is vested with the Central Government. This Life Insurance Corporation took itsshape.The main advantages of Life Insurance are 1. In case of death of the insured, the full sum assured is benefited under Life Insurance policy. In an ordinary savings, only the accumulated savings become available. 2. It protects the claims of the creditors by effecting a valid assignment of the policy. 3. It also stands as a security loans. 4. Income Tax Act exempts the payments of taxes on income devoted to the insurance payment. 5. The resources of the Life Insurance Corporation play an important role in the national development. Rural electrification, water supply, small-scale industries etc., are met with the resources of the Life Insurance Corporation of India. Anyone who wishes to insure his life can approach an agent of the Corporation in order to know therelative advantages. There is a proposal form to be filled in. After submission of the proposal form dulyfilled in along with the evidence in support of his statement, the corporation will arrange for his medicalexamination by a doctor approved by them. If satisfied with the medical certificate and other documents,he will be informed to remit the first premium. The first premium is paid and the Corporation issues thepolicy. The policies are also of many kinds, for example, Endowment policy, Whole-Life Policy, Joint LifeEndowment policy etc. Then the policy may be with profit or without profit. The premium of policy withoutprofit, is lower than the premium of policy with profit. There are various other kinds of policies e.g.Educational Annuity policy, Multipurpose policy, Children’s Deffered Assurance, Convertible TermsAssurance etc.Rates of Premium The rates of premium will be published in the prospectus of the Corporation. The Corporation isprepared to insure the lives of even those whose health is below the average standard. The premium ofthose who are engaged in hazardous occupations is higher.Payment of Premium Premium is payable monthly, quarterly, half-yearly or annually, and this will be according to thecontract. Grace period is also allowed to remit premium after the due date. Generally one month graceperiod is allowed to remit premiums other than monthly installments. For monthly installments 15 daysgrace is allowed beyond the appointed time within which the premium must be paid. If not, the policylapses.Surrender value It happens sometimes that policy-holder may not be able to remit the premium regularly. And thisposition may lead him to surrender the policy. The Insurance Corporation will pay to the assured thesurrender value if he surrenders his policy and forgoes his claim. The surrender value of a policy BSPATIL 184
  • 185. represents the premium paid together with interest to the assured less the expenses of the managementof the company during that period.Model 259 : Letter accompanying the policy INSURANCE CORPORATION LTD. Mumbai – 400 020 18th January, 2002Mr. K.S. Menon,West Street,Mumbai – 400 010 Ref. : Life Policy No. 135896Sir, I have pleasure in sending you herewith your life policy. Since you have become a member of thiscorporation, you may naturally with to see the prosperity of this organisatoin. This scheme not onlyprovides for the future but also many other benefits that are open to policy holders. Therefore, pleasepersuade your friends and relatives with the benefits of policy-holding. Please go through the policy and let us know if you find any mistakes in it so that the same may berectified.Thanking you Yours truly, For Insurance Corporation Ltd.Encl : as aboveModel : 260 : Enquiry in order to surrender a policyK.S. Nadar 1873, Big Bazaaar, Salem 19th Jan. 2002The ManagerInsurance CorporationSalem Life Policy No. 43785962Dear Sir, I would like to surrender by above policy as I find it financially very difficult to continue theremittances. Therefore, it is requested that the surrender value of my policy may please be intimated to meas early as possible.Thanking you Yours faithfully BSPATIL 185
  • 186. K.S. NadarModel 261 : INSURANCE CORPORATION Salem 25 January, 2002 thMr. K.S. Nadar1873, Big BazaarSalemRef. : Policy No. 437262Dear Sir, With reference to your letter dated 19th January, we request to inform you that you are not entitledto demand surrender value of your life policy. As perthe prospectus of the Corporations policy holder willbe entitled for the surrender value only after two annual premiums have been remitted. Since you haveremitted only one and a half years, premiums the policy has no surrender value. Yours faithfully For Insurance Corporation. ............................................Model 262 : Asking for loanM.S. Thirupathi 1572, Temple Marg Madurai – 625010 25th January, 2002The ManagerInsurance Corporation,Madurai – 825 001 Ref. : Life policy No. 4557292Sir, I hold the above policy on my own life and have remitted premium up-to-date. At present I ampressed for money. Therefore, I would like to know the maximum amount of loan that can be grantedagainst my policy. I may also be informed of the procedure to be adopted for getting the loan amount.Please treat this as urgent.Thanking you, Yours faithfully M.S. Thirupathi BSPATIL 186
  • 187. Model 263 :Frederic John, M.A. House No . 354 Palayamkottai Junction 1st Feb. 2002The Manager,Life Insurance CorporationThirunelveli – 627002 Ref. : Life policy No. 147837Sir, Due to frequent transfers and shifting of my residence from place to place, the above policy hasbeen lost. I searched everywhere but it could not be traced out. Therefore, please let me know theprocedure to be adopted by me so as to enable me to get a duplicate policy.Thanking you. Yours faithfully Frederic John.Model 284 : Conversion of policy into paid up oneSymon Joseph 1746, Beach Road, Chennai – 600010 1st February, 2002The Manager,Insurance CorporationMadras – 600 012 Ref. : Life policy No. 43789Sir,I am sorry to inform you that my present financial position does not permit me to continue the remittanceof premiums. As such I wish to have the policy converted into a paid up policy. Please let me know thesurrender value.Thanking you, Yours faithfully Symon JosephModel 265 : Assignment of the policyR. Rajesh Nadar 1862, Mount Road, Chennai – 600 013 BSPATIL 187
  • 188. 10th February, 2002The Branch Manager,Insurance CorporationChennai 600 001 Ref. : Life policy No. 417129 own lifeSir, Please take notice that my life policy has been assigned to my wife Mrs. Rukmini Nadar. I am alsosending the prescribed forms duly filled in as per your instructions in your letter of 1st February, 2002. Please register the assignment in your record books. As you desire, the life policy is also enclosedherewith and the same may please be returned when done with.Thanking you, Yours faithfully, R.R. NadarModel 266 : Claim by death of a policy holderMrs. Geetha Chettiar 1248, Nadar Street, Chennai – 600 020 15th Feb. .........ToThe ManagerThe Life Insurance Company,Chennai – 600 001 Ref. : Life policy No. 52389Sir, I regret to inform you that my husband Sri K.P. Chettiar, died of blood pressure on 29th Jan. He hadinsured his life for Rs. 5,000/-. He had assigned the life policy in my favour. Your record will proveeverything. Therefore please send me the necessary forms, to be filled in by me and intimate the other detailsrelating to it. I request you to take immediate action in this matter.Thanking you, Yours faithfully (Mrs.) Geetha ChettiarModel 267 : Changing the mode of premium paymentsM.S. Devan Temple Road, Near Beach, Chennai – 600 020 15th Feb. 2002The Branch ManagerLife Insurance CorporationChennai – 600 001 Ref. : Life policy no. 48929 BSPATIL 188
  • 189. Sir, With reference to the above policy on my life, I would like to make the remittances of the premiumsquarterly instead of annual remittances. Therefore, let me know the procedure to be followed in thisconnection. If there are prescribed forms, they may please be sent to me.Thanking you. Yours truly M.S. Devan BSPATIL 189