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Business Communication 1.1 BBA / B.Com / BA / BSc 1 CONTENTS 1. Communication in Business 2. A Good Business Letter 3. Commercial Correspondence 4. Format of Business Letters 5. Circular Letters 6. Sales Letters 7. Follow up Letters 8. Trade Enquiries 9. Offers and Quotations 10. Trade Offer 11. Status Enquiry 12. Confirmation of Orders 13. Complaints and their Adjustments 14. Collection Letters 15. Making Payments 16. Application for Situation 17. Banking Letters 18. Agency Correspondence 19. Corresponding with the Government 20. Drafting of Reports 21. Secretarial Correspondence 22. Import Trade Correspondence 23. Export Trade Correspondence 24. Writing of Minutes 25. Letters to Editors and Complaints to Personnel 26. Insurance Correspondence 2 Chapter I COMMUNICATION IN BUSINESS Objectives of Communication Communication is a means by which different persons are linked together in a group or organization to attain a common goal. No group activity is possible without

communication it enables the members to co-ordinate, to exchange and to make progress. A good communication should aim at making everyone concerned aware of the goal which the organisation wants to achieve. The two main objectives of communication are to inform and to persuade A group of persons, whether a social community or a business firm, can pool their4 effort for a common goal only if all the members of the group know what they are working for a trying to achieve. Individuals and sections in a group will try to persuade one another to change one’s attitudes, ideas etc. so that the whole organisation may benefit Effective and efficient perfo0rmance of work in any office calls for providing convenient and efficient means of communication. 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 be downward –top to bottom, upwardbottom to top or

horizontal-between persons of same status Let us briefly look into the goals/objectives of communication. 1. Information Giving Information may be given orally or in writing. The basic objective of communication is to turn the static into dynamic Information effects decisions. Information needed for daily work can be given orally If large groups have to be informed, a meeting may be called. Good management believes in keeping employees well informed about the company’s aims, plans, progress and prospects about working and service conditions, 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 to seeds, 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 and from where to get financial assistance?” etc. Many companies circulate news about their employees, their achievements and event their family affairs so as 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 to influence action is order to promote the common welfare of an organisation or a group. 2. Education is Trading Education means imparting instruction, character building, enriching mental faculties, giving training to human being etc. Communication is vital in education Education is achieved through communication Employees are trained essentially by communication. Communication can be accomplished by means of lectures, discourses, books, cassettes, videos, seminars, conferences, study-tours, mock-sessions, case studies etc. all education takes place by means of

communication. a supervisor or any other person entrusted with the responsibility for training must have the ability to communicate. 3. Motivation Motivation means getting people to give their best. The manager communication with the people be manages and motivates them. He has to get people to work as a team The motivation of the employees depends upon the patience and sympathy shown by the management. Motivation cannot be achieved by a single 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 takes place through communication. it is always advisable to orientate the employees with the company’s target, aim, object etc. through communication 4. Counselling 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, legal advice and vocational guidance. Counselling can be successful if there is a two way communication 3 5. Persuasion Including, 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 vote for 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 persuade customers When new policies or machineries are introduced, employees resist, fearing retrenchment. In order to accept the change, the managements must persuade them not to fear. Persuasion is more easily done by a person who enjoys respect and confidence of those whom he wishes to persuade. a good enunciation can make a person very persuasive 6. Suggestion Suggestion coming from employees are upward communication. the employees actually

involved in the work 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 are rejected or accepted or further clarification is asked for from the suggestor. Communication is used to convey suggestions or ideas This is being constantly done is all human groups. Someone makes a suggestions and the others react to it Such intercourse of ideas and suggestions is the moving force of all action in a society or in any social group like a family, office, factory, state, nation etc. effective communication promotes the acceptance 7. Morale Boosting Morale is the state of discipline and spirit in a body of workers, army or nation. Morale must be kept high with constant effort and regular and consistent policy. Rumours of close down, a take over, retrenchment etc cause anxiety and fear in the minds of employees. When morale falls, communication has to be

stepped up When employees are in fear, the top management has to reassure them ad keep up their morale. 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 can produce good results. 8. Advice Advice is opinion about what to do, how to behave etc. Therefore it is a kind of information Parents advise their 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 the detection of defects and drawbacks and good results may be expected in a given situation. In any sense of the word, advice

denotes some communication which is aimed at bringing about a change. 9. Warning To warn means to give notice to. A warning may be given orally or in writing A written warning is often called a memo. Warning may be given to an employee for his indiscipline Groups may also be warned against activities that disrupt or obstruct smooth functioning or regular work. At first an attempt is made by advice, request, suggestion, instruction, orders etc. When all these fail, a warning is given 10. Appreciation Appreciation of initiative, good effort and work by employees is very useful for creating a good attitude. It may be conveyed orally. If given publicly, it has better effect Letters of appreciation will certainly boost a flagging morale 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 story of man’s advancement in the art of

communication. the transformation of our planet into a global village owes much to modern communication systems such as the telegraph, the telephone, the television and the internet. The life blood of a business organisation is purposeful communication. it transfers thought from one person to another. It directs controls and evaluates each and every activity of the organisation No group activity is possible without communication. 4 Aims of Good Communication Good communication aims to reaching the goals which the organisation wants to achieve. According to Scott, “Administrative communication is a process which involves the transmission and accurate replication of ideas ensured by feedback for the purpose of eliciting actions which will accomplish organizational goals.” The message to be given is the information, which is to be transferred from one to another in an effective manner. If the message is understood by the reader, communication is said to have served the purpose.

Our letter is our ambassador It reaches where we cannot reach a business letter represents the firm or the business house from it springs. The letter must strengthen the friendship between two business houses or the customer and the dealer. Barriers to Communication Barriers are the obstacles which cause problems in communication. When an organisation is large, it will confront more obstacles. The problems or the difficulties are called barriers to communication the chief aim of communication is to get a definite response. A perfect act of communication takes place when the information as aimed by the giver is passed on and is understood by the receiver. Organizational communication is totally a human oriented process The failure of communication is mainly a human failure. Despite the development of high speed electronic devices communication does not always accomplish 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 the rece4iver. There are mainly three types of communication media – (i) Oral, (ii) Written and (iii) Gestural All these media have their relative merits and limitations. A proper selection of media can add to the effectiveness of communication, while improper selection of media may itself act as a barrier to it. See the following examples: COMMUNICATION BARRIERS Sender of Message • Noise • Time and Distance • Interpretation of words • Inattentiveness • Premature evaluation • Unclarified Assumptions • Status Block • Closed Mind • Organizational Barrier • Resistance to Change Receiver (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 5 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, 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 Correspondence The term “correspondence” means communication by exchange of written messages. Commercial or business correspondence, as it is now-a-days called, refers to the written communication relating to business of any interest to both the parties, between whom messages have been exchanged. The purpose of letter writing is to pass on the information to the recipient without personal contact. Written words convey the

meaning and feeling of the message Words are the symbols we use to express out ideas. They are the tools of effective communication the best words in the best order have tremendous power and appeal. They convey our thoughts to other people in language that is 6 unmistakably clear and readily understood. To write effectively you must choose the right words and use them to express yourself clearly, concisely and directly. You must not fall into the trap of pompous and unfamiliar words and roundabout phrases. Choose the language that best communicates 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 Communication Modern business is busy, complex and comp0etitive. Buying and selling is done rapidly Every business is inextricably bound up with several others. There is competition among different brands of a product and also among different sellers. Time is precious The following broad principles may be followed when you write business letters: 1. Business letter-writing calls for a plain style-a style ie, 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 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 7 Chapter II A GOOD BUSINESS LETTER Importance and Functions of Commercial Correspondence In the field of trade and commerce, business letters of commercial correspondence have played a significant role. Letters are the only channels which facilitate the firm to maintain a constant touch with the 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, thus promote the business. It creates a link between the buyers and sellers, who have never met nor are likely to 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 or market 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 through talks, but can conclude through letters. Moreover, writhing makes a lot of difference when compared to talking because people woll have more faith in pen (letters) than in tongue (talks). Further, the possibility to 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 III 9. Act as a messenger Chapter and 10. Compromise disputes COMMERCIAL CORRESPONDENCE QUALITIES 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 has to be 8 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. 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. 9 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 letterwriting 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 The qualities of a good letter have been studied in the preceding section. In general, there is no method which is applicable to all letters. There is also no universal system to be followed in business letters Every writer has his own method of writing letters. But the above said qualities are adopted in writing business letters The writer should try to improve his own way of writing, 10 A business letter should possess sincerity, courtesy, tactfulness, straightforwardness, completeness, correctness etc. Unnecessary details of generalization will merely confuse the reader. The reader should not say, “I do not know what he is writing about.” Therefore, every planning of the central theme

is essential It is also essential that all necessary information is included. The letter should present to the reader 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 connecting thoughts. 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 requires to be done with pen and ink. Legible and clear hand writing will be valuable Illegible letters may be left unread In general, a letter must be written in a clear handwriting. Well drafted letters addressed, in time, to the addressee are favourably appreciated. Businessmen are usually 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 to business letters as to his salesman Because a businessman writes letters with the deliberate intention of persuading the addressee to respond positively, hence developing the ability to write good business letters is of utmost importance. It is also a pointer to his competence as a businessman. A letter in fact takes the place 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 and fruitful 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 20. Al the information that the addressee requires must be given. 11 HOW TO WRITE GOOD LETTERS ESSENTIALS OF GOOD BUSINESS LETTERS 1. Think about what you want to say before you start to write. 1. A business letter is an ambassador of the writer. So be courteous in writing 2. Jot down all the points you wish to write: never mind the order. 2. Courtesy can further be shown by prompt reply. 3. Now rearrange the points in the logical order. 3. Precision and clarity must be maintained thought-out the letter 4. Have a clear ideal of the character of the person you are going to write to. 4. The letter

must facilitate to achieve your objective. Clear objectives lead to easy writing. 5. Begin with a short paragraph stating why you are writing; you can refer to a letter received by you and mentioned the subject of the correspondence. 5. “You” attitude must be followed, instead of “I” and “We”. 6. The actual message can be written in the second paragraph. 6. Confused thinking or mixing-up of facts must be avoided. 7. The closing paragraph usually leads to some action on the part of the reader, it asks him to write back, or to place an order, or to write to someone, or to look into some complaint. 7. “Look before you leap and think before you speak”. Similarly, collect all essential facts and materials before you reply letters. 8. “You” attitude is the secret of effective letter. 8. The letter must evoke a friendly 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 letter has life. 10. The letter should have visual appeal 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? 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? 12 Chapter IV FORMAT OF BUSINESS LETTERS The 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 glance where 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 Form BRIGHT TRADERS Hussain Road, Lucknow – 226001 th 24 April, 2002 Mr. Writer, Horby Street, New Delhi – 110040 Dear Mr. Writer, This letter is written in intended form. It is important to note that the first line of each paragraph begins 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. Your sincerely (S. Ramu) Manager 13 II. Hanging Indent Form SCHOOL OF COMMERCE Marg Street, Allahabad – 211 033 24th April, 2002 Mr. Writer, College of Economics, Chennai – 600010 Dear Sir, In hanging indent form, the inside address and

salutation are typed as in the block form. The first line of each paragraph begins flush with the left-hand margin. The remaining lines of each paragraph 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 to attract 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 2002 Mr. Writer Horby Street, Agra – 282 015 Dear Mr. Writer, The block style of this letter is modern. This type is widely used in America Every line of the letter begins from the left-hand margin without allowing space. Only essential punctuations are typed 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) 14 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; 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 15 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 description Phone: Address Gram: Date Code: Reference Inside Address Attention line Salutation Introductory para Para, communicating the message Concluding para Complimentary close Signature Post script, if any Enclosures,

if any 16 Chapter V CIRCULAR LETTERS Circular letters are the cycle of business dealings. A circular is a communication meant to convey information of a business firm to customers, business friends etc. in the course of business occasions will arise to send out circular letters. The sender aims at giving certain information to the public There are also 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) any number of letters can be posted in a day, (c) to a certain extent the personal meet of the sales agents can be substituted, and (d) the recipient, if interested, may call upon the firm or the sales agent, and so the agent 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 eg 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 difference between a circular and a general letter is that, whereas the former is addressed to many persons, the latter is addressed to only one person. Circular letters are to be read by a large number of people, whereas general letters are personal and private in nature. Therefore, circular letters must be specially well written in clear and understandable language, for example, a company having a large numb er of shareholders has to 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 of the recipient of a circular letter is sometimes omitted, when the letter is under cover of an envelope. As regards the salutation, general form is, Dear Sir/Madam. The Signature must appear in circulars, and it may be facsimile 17 Some Model Letters follow Model 3 : Announcing the opening of new business Tes. 3242 Imports: Technical aids, Gram : NEW ENTER Technical Machine, GREAT ENTERPRISES Chamber Road, Sadar Street Mumbai – 400018 Dated 30th Aug. 2002 Ref. Noi Tax/Cir/24, Knitting Machines Dear Sirs, We are pleased to inform you that we have been appointed as the sole selling agents for the knitting machines manufactured by the Indian Knitting Machinery, Company, Bombay who are specialized manufacturers in this line. To give a clear understanding of products we enclose a brief description of machineries. You will also be glad to know that these

machines are exported to foreign countries like Africa, Iran, Australia and many other developed countries. We are confident that these machines will be quite interesting to you specially because they are designed to produce fully fashioned fabrics and all types of garment. Moreover, these machines are also capable of giving 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 8. The letter must have a beautiful get –up 9. A warm and friendly tone may be

used 18 Model 4: Announcing the formation of a limited company: Phone : 2542 Gram : JAMESCO JAMES MORTON & COMPANY LTD. No. J4/Circular Church Gate, Manchester 30th Aug. 2002 Dear Sir, On behalf of the Director of “James Morton & Company Ltd.”, I take this oppoprtunity to inform you that 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 interest in 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 you that 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 are experienced 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 specially advantageous terms. While thanking you, as one of the numerous friends of the late firm, I request you for a continuation of your confidence in the new company and assure you that all future orders and contracts will be executed with the same care and promptness as hitherto. Yours faithfully (General Manager) Model 5: Circular letter of a retiring partner Phone : 645 Grams: RAMCO RAMGOPAL & COMPANY Kali Temple Road Agra – 282001 . . . Dear Sirs, 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 so many years. My other partner4s have already made most satisfactory arrangements to carry on the business 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 in maintaining the fair name and reputation of the firm in future years. I trust, 19 you will be so good as to continue 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 years between us. I wish you the continues prosperity. Yours sincerely, P.K John Model 6: Expansion of business DE JOHN & COMPANY (Manufacturers of Steel Furniture) New Delhi – 110018 30th Aug. 2002 Cir/56 Dear Sir, The object of this letter is to inform you that we are aiming to start a branch of this firm in Madurai as we are receiving many enquiries and orders from that place. In order to give more satisfactory service to our valued customers of Madurai region, the firm will be situated in the heart of the

city, with the following address. DE JOHN & CO. Br. Office, College Road, Madurai-625001 We are sure that you will appreciate our expansion of business. We invite you to pay a visit to our new branch at your earliest convenience. Mr. Smith, who was at the Head Office for 10 years, in charge of the execution department, is the Manager of 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 in future may please be sent to new branch. We trust that the pleasant business relations, which have existed between us, will be continued with the new firm, where direct relation is possible. Yours sincerely For De John & Co. 20 Model 7 : Informing change in personal matter BEST GARMENT CENTRE Pattom Road Mumbai – 400012 30th Aug. 2002 Mr. Sethuram – Sales Representative Dear Sir, We regret to announce that Mr. RM Berry, our

valued and energetic Sales Representative has tendered his resignation with effect from 15th September 2002. Therefore, he will cease to be in our service from the said date Arrangements have been made to transfer Mr. P Sethiuram in his place Mr P Sethuram, as some of our customers will remember, has previously served in your area. Thus he is not a new representative We are sure 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 Centre Model 8 : change of address EDWARD & COMPANY LIMITED Mincing Lane, London E.F 2 20th Aug. 2002 . . Change of Address Dear Sir, This is to inform you that owing to lack of spaces, we are compelled to seek for more commodious premises. Accordingly, we have decided to shift to Chruch Road, which is about 2 kilometres from the existing 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 2 We trust that the new premises, being more commodious and central in position, wil certainly be convenient to you. Yours faithfully, For Edward & Co. Ltd 21 Model 9 : Introduction of a Partner S. CHAND & COMPANY Ramnagar, New Delhi – 110055 Dated . . Introduction of a new partner Dear Sir, We are pleased to inform you that we have this day admitted to our firm Mr. Banerjee who has great experience in this line. We are fully confident that Mr. Banerje will have keen interest in the welfare of our five and contribute to its further development. We thank you for the cooperation you have been extending to our firm in the past and earnestly hope the same will be continued. Yours faithfully For S. Chand & Co Model 10: Announcing price reduction Garment Palaced M.G Road, Mumbai – 400109 7th July, 2002 Dear Customer, You will be pleased to know that during this month, we offer you at extra-ordinary

REDUCED PRICES of all readymade 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 July Place: High Ground, Mumbai – 20 Time : From 8.00 AM to 1000 PM except Sundays As a special offer, we shall make reductions from the regular prices that will show you a savings, in almost all 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 delay Thanks Yours sincerely, 22 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 y disposing 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 the business from this day with all its assets and

liabilities. By this act of takeover, Mr R Gopal becomes the sole proprietor of this firm He will receive and disburse all dues and claims outstanding. You will be glad to 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 will extend the same favour to Mr. R Gopal, who is ready and competent enough to maintain the old traditions of prompt and sincere service of this firm to all. Thanking you, Yours sincerely, (Old partners) Model 12: Clearance Sales TOPSONS LIMITED 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 to reconstruct it to latest model. This will necessitate to remove the goods to a new building In order to minimize 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 you to make all possible purchases, enjoying this substantial reduction in prices. At the same time, it is needless to say that our stocks are of the best quality. 23 The clearance sale commences on the 15th of August. We will be glad to see you in our shop as early as possible 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 product Hints: 1. 2. 3. 4. 5. Give news of the new product that you have introduced. Describe the use of the product. Physical features are to be high lighted. Create interest in the minds of people. 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 dining table. Manufactured with the help of improved and up-to-date machinery. BABY BUTTER possesses genuine flavour and natural delicious taste. The installation of modern appliances enable us to prepare it untouched by hands and this ensures its purity. The BABY BUTTER is bottled in sterilized glass which containers are hygienically sealed to prevent contamination. Arrangements have been made for the delivery of BABY BUTTER to the door of our customers from our own 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 prolonged experiments 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 Bangalore have 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 and requirements without delay by mailing us the enclosed proforma. Thank you for your immediate attention. Yours sincerely, 24 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 CYCLES throughout Kerala State. These bicycles requires very little introduction to the market. It is needless to mention that SPEEDO CYCLES are world famous. The quality of the bicycles is above the average The patrons of these bicycles are convinced 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 of 10% 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 superior quality of goods. We feel sure that we are offering once more a commodity of unquestionable quality on the most convenient terms. Let us look forward to you for an opportunity to prove that we are at your service with our present standards fully maintained. Thanking you. 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 the customers. We continue to trade under the old name and make effort to adhere to our predecessor’s policy of 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. 25 We hope you will be kind enough to extend your usual cooperation. Thanking you. Yours sincerely Model 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 Sale of the present stock, commencing from 1st August. We have planned for you a Grand Clearance Sale of our stock Prices Marked D O W N by 50% on all items. OFFER OPEN TILL 10TH OF AUGUST Furry UP !! YOU GET GOODS WORTH RS. 100 JUST FOR A PAYMENT OF RS. 50 The reduction sale will remain open till 10th of August. Hence you are requested to pay us a visit during the period The goods offered in the sale are new and of good quality. You can take full advantage of this sale, just on your visit to our shop. Your immediate attention is highly appreciated. Thanking you. Yours sincerely Model 17 : Death of a Partner RAMDAS TRADERS Near Bus Stand, Virudhunagar . . . .

26 Death of a Partner Dear Sirs, We regret to inform you that owing to the death of our beloved partner, Mr. Raman, we are compelled 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 has been 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 prove that 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 in appropriate blanks. These are used because it saves time from dictation and typing If there are many form letters, 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 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) 27 Chapter VI SALES LETTERS Publicity has a very important role to play in a competitive society. No business can be done successfully without 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 when a seller wants to approach his customers in order to introduce a new item to promote sales, to push out one’s stock etc. letters sent out with this aim are known as sales letters. A sales letter is nothing but an advertisement, aimed at a

carefully selected group A sales letter is a very useful instrument to call on a particular group of customers. Sales letters are persuasive in nature. Many firms think every letter that goes out from the office is a sales letter, because every business letter aims at an opportunity to sell the firm’s product or earn goodwill for the firm. To a certain extent the salesman is substituted by the sales letter, because the purpose of the salesman and sales letter, is the same to push up sales. Therefore the function of a sales letter can be compared 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 repeated visits to the buyers for interviews. 2. It is sure that the letter will reach the customers. But if a letter is drafted badly, it goes to the waste paper box 3. It is possible only in profitable

business 3. It is possible in all cases because of less cost. 4. It is evident that the salesman may fail if the customer is interruptive. 4. It is not so Even if it fails, that costs nothing except the postage. In the modern trend all the business letters are sales-oriented. In a sales letter “you” attitude is always effective The letter must be viewed from the point of view of the reader. The tone and style of the letter must be keyed to the reader’s interests and wishes. The aim of the letter must be to create an interest in the 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. If a letter is effective, that ends in sales. The beginning and end of the letter will be attractive and are important 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 the benefits. 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 to act 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 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; 28 2. Stimulate the reader’s interest; 3. Stress the benefits of the offer to the reader; 4. Convince the reader to act immediately The 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 letter A sales letter has the following functions: 1. Attracting attention; 2. Arousing interest; 3. Educating and convincing; 4. Stimulating desires; and 5. Securing action The last para of the sales letter must successfully turn the reader

into a customer e.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 customers Dear 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 customers only. A price list of the books that shows the original price and the special discounts allowed to them, is enclosed for your reference. The stocks of these books are already on sale and are limited for two more weeks. 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 postage expenses 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 old customers only Delay will disappoint us. Yours sincerely, . Encl : One bargained price list. 29 Sales Promotion Letters The aim of production is sales. Sales and promotion are two different words Sales promotion is the combination of these two words. Sales promotion increases the sales Sales promotion methods aim to capture the market and increase the sales volume. It is an important instrument in marketing to lubricate the marketing efforts Now – a – days sales promotion is necessary tool to boost sales. It aims in creating demand It is right to say that sales promotion moves the product. A manufacturer must make the customers to know the product and he must influence them to buy that product. Unlike sales letters, these letters 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 & Sons Ram Nagar, Nagercoil 629 002 Sirs, We are introducing a new line of watches. These are specially designed for young men and women who are just starting out in life. We enclose a catalogue of the watches I am sure that you will find them very attractive 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 prices and 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. Thanking you. Yours sincerely Encl. as

above 30 Model 21: Sales letter introducing a new product We 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 all types of clothes The dirt is removed without rubbing or scrubbing. At the same time the original colour is retained by washing the clothes with the SUPER WHITE washing powder. It does not harm the hands while washing as it is free from injurious chemicals. It simply requires soaking of clothes for an hour and rinse thoroughly, will show the result We are launching an advertising campaign in the mass media. We are sending samples of SUPER WHITE washing powder in 50 gram packets for free distribution to the customers to enable them to find the truth of our claim about the quality of this powder. Our aim is to serve our customers to the best of our ability and with goods of proven quality We look forward for a trial order

for SUPER WHITE washing powder which, we are sure, will give your satisfaction. Thanking you. Yours sincerely Model 22: Sales letter by a Retail Merchant BABY STORES East Car Street, Calicut th 10 January, 2002 Mr. 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 move out 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 has earned a good name by supplying all types of standard goods – provisions, stationery items toys etc. at reasonable 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 collecting things from us You please inform your needs over the phone or through a

messenger. You get the needed items 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 yourself of the best service and we are sure that you will always cherish your dealings with us. Thanking you, Yours sincerely (Manager) 31 Model 23 : A Sales letter about steel tables K.K STEEL FURNITURE K.P Road Nagercoil, 629002 st 1 Aug. 2002 The Principal, College of Commerce, Nagercoil 629 002 Sir, 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 OFFICE TABLES to suit budgets, storage needs, office layout, work areas etc. These tables are elegant, functional and money saving and they fit well your office layout. Different jobs in an office call for different table requirements 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 they are of the best quality An illustrated catalogue will be sent to you on request. All orders are executed at door delivery basis Our expert 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 you Yours sincerely, For K.K Steel Furniture (Sales Manager) Goodwill Letters Effective business letters are the “life blood” of modern business because they help to expand business or market 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 ones and win similar other favours. The best way to achieve a customer’s goodwill is to offer best services A businessman who overlooks a customer’s letter of complaint is digging his own grave. Prompt reply fosters pleasant relations Every letter of complaint received by a trader is an opportunity to make friends with and a chance to win over a customer. It is senseless to think that complaints are a nuisance A trader should welcome reasonable dissatisfaction with his goods or services. If a businessman desires to keep his customer’s business, it is very important for him to reply as soon as he receives the complaint. He should satisfy the customer with a suitable reply if mistakes can be rectified without delay. In other cases, if time is required for investigation, immediate acknowledgement of his letter of complaint is essential. One should have a constructive approach towards business. Goodwill letters are written, sometimes, when there is no need for

doing so. A friendly approach undoubtedly wins customers For egs Imagine you are entering a shop Immediately the shop – keeper or a salesman greets you, “Good morning, Sir.” He enquires what you want and invites you to select your requirements. After making purchases, you pay the bill and the cashier tells you “Thank you, Sir”. When you approach the packing section, the packer gives the packed items by saying “Thank you Sir”, please 32 come again.” You will be immensely pleased and you will make it a habit to visit the shop again and again Such pleasing manners cost the trader nothing but win him friends. Note: “As a rule all business correspondence should aim at creating goodwill. But there are some letters-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 remembered most in the case of all kinds of goodwill letters is the importance of the element of sincerity, which must come 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 th 10 April 2002 Mr. Krishnan, General Merchant, Chennai – 600 010 Dear Sir, Our Sales Representative, Mr. Gopal, has informed us that you have not given any orders for the coming season This is perhaps due to the fact that there was some delay on our part in sending the ordered items last month. The delay happened because of workers strike which was beyond our control. I have already informed 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 after the summer holidays. Paper cost is increasing day-by-day As a friend I suggest you rush you demand without delay

Delay will result in paying higher prices. Timely action will help you to earn a good profit out of the season The price-list is enclosed alongwith samples. Generally, we do not send sample unless asked for You will observe that the prices quoted are exceptionally low and we suggest you, in your interest, place orders as early as possible. You are most welcometo visit our shop, whenever you can. If there is anything more, we could to for you, please do not hesitate to inform us. We await your orders. Thank you. Yours sincerely, Encl : as above “Most business letters have two objectives : to promote a particular transaction and to build goodwill. They can be as brief and simple as you wish, but they should express what you feel in terms that are warm and sincere.” 33 Model 25 : Approaching new customers JAY ENGINEERING COMPANY Chowringhee Road, Kolkata – 13 th 10 June, 2002 M/s Raj Kamal & Sons, Flora Fountain, Mumbai – 400113 Electric Fans Dear Sirs, In 1970 we

manufactured only 500 fans per month. In the year 1980 we manufactured more than 10,000 fans every month, during the 90’s we were making over 30,000 fans every month, now 50,000 fans every month. This is the finest example of determination, combined with latest techniques and know-how. We have 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 countries in 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 at reasonable price. Let JAY fans convince you how you can get good air. Yours truly, For JAY Engineering Cp., 34 CHAPTER VII FOLLOW UP LETTERS Every businessman tries to increase his business through various methods, which are suitable to him. If a man visits your shop (you being a businessman) try to give him maximum information about his requirements. If an

item is not satisfactory to your customer, you will immediately switch on to the substitution. 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 be necessary to obtain real benefit. One of such steps is technically known as FOLLOW UP system This is a system in which approaches to prospective customers are made through letters. Follow-up letters are usually sent out in a standard form. Each successive letter is worded in a more intimate language In order to 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 in continuation of a previous trade letter or circular letter which contains sales promotion methods as the main 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, he may wait for 10 or 15 days, then he sends another letter of a re- approaching nature in order to attract the attention of the customers. If the customer is silent he once again writes follow up letters to him Until an order is received, he may go on. Follow up letter will be sent on the presumption of getting orders If the businessman thinks, that a particular customer is not interested, he may not send unnecessary follow up letters. 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 replier are 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, a second letter follows with more information. Again, if he does not respond, a third one is written with a fresh 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 either cyclostyled or handwritten. The letter must be very courteous, pleasant in nature and must express full confidence 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, 2002 Mr. Roshanlal Sharms, 1273, Civil Line, Mumbai – 400 023 Dear Sir, A week back, we had the pleasure of demonstrating the system of Johnson Battery Eliminator suitable to transistor radios. The complete literature of Johnson Battery Eliminator is enclosed Now by possessing transistor radios you 35 need not purchase batteries, for the batteries can be replaced by the Johnson Battery Eliminator. 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 Battery Eliminator. 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 Johnson Battery 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, 2002 Mr. Roshanlal Sharma, 1273, Civil Line Mumbai – 400 023 Dear Sir, We take the liberty to approach you once again. The enclosed illustrated price list will give you an idea of Johnson Battery Eliminator. We are persistent because we are sure of serving you and enabling you to avoid any heavy expenditure. We undoubtedly hope that the enclosed booklet will give you a clear understanding. Since we have heard nothing from you so far, we write to you again thinking that you may like to know more details. We shall be glad to clear all the doubts and queries, if you will let us know of the same. The cost of the Battery Eliminator is very low and every Battery Eliminator is supplied with a guarantee card of one year from the date 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 above Model 28 : Third follow up letter (Last follow-up letter) JOHNSON RAIDO CO. LTD 28, Dadabhai Road Mumbai – 400 001 20th July . Mr. Roshanlal Sharma, 1273, Civil Line, Mumbai – 400 023 36 Dear Sir It is understood that our previous letters relating to the advantages of Johnson Battery Eliminator did not draw 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 you as to how Johnson Battery Eliminator is preferred by the public. Moreover, there is a great demand, all over India, for Johnson Battery Eliminators. The Johnson Battery Eliminators are manufactured at a low cost, because of the increased sales of Johnson Battery Eliminators. The Johnson Battery Eliminator costs Rs 100 only There

who live in Mumbai can get the Johnson Battery Eliminator from any of our authorized dealers on an advance of Rs. 2000 as the first installment 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 you and handed over to the local dealer alongwith the advance. If you do so, he will be glad to welcome you in offering 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, 2002 Mr. Ramlal, Civil Line, Mumbai – 400 010 Dear Sirs, It appears that our previous letters have failed to convince you of the advantages of the working of pump sets. We bring a few more facts to your notice. The enclosed copies of letters addressed by some of our valued customers show the usefulness and trustworthiness of our pump sets. Among these are

the Government of few States which have used them in their 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 by 10%. To suit the convenience of the buyers, we have prepared an another scheme of Hire Purchase, Under this scheme the price of the pump set is payable in installments, spread over a period of 12 months. Thus you 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 case you decide to take advantage of our Hire Purchase Scheme, please fill in the enclosed form and sent it to us alongwith initial payment. On receipt of the form, we will immediately proceed to install the pump set at your farm We appreciate an early reply form you. Thanking you. Yours sincerely Encl : As above 37 Chapter VIII TRADE ENQUIRIES Most

letters, which are written for commercial purposes are trade letters. Every trade letter is written with a certain aim. They include letters of enquiries and replies, letters of order confirming order, letters of dispatch, letters of settlements, etc. We can see many tyupes of advertisements in newspapers. Sometimes the advertisement fails to give full information of a particular type of goods, to the buyer or customer. In this case, the correspondence thread, “Enquiry” starts from the buyer. This will naturally be replied When the response is satisfactory, he sends an order and the seller will executive the order. accounts are settled, unless there be some cause for complaint If there is any complaint, they are adjusted. Finally payments are made and the whole correspondence 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 accounts In 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 buyer himself. 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.OR or Exgo down or CIF 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: 38 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 CA 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 letter Tel. 9758 Gram : HEMCHAND HEMCHAND & SONS (Dealers in Electrical Goods) Wright Town, Jabalpur (M.P) Dated . 39 Messrs Sharma Stores, Bhopal Dear Sirs, Your name as manufacturers of handy electrical machines has been mentioned to us by Sri W.N Chopra, a famous Doctor in this city. As we are dealing in electrical goods, we have many buyers to purchase the handy electrical machine. Therefore, please supply your quotation alongwith literature Please also clearly mention the time you may take to effect the delivery of goods. Thanking you. Yours sincerely For Hemchand & Sons R.K Jain Model 31 : Enquiry letter Tel. 4246 Gram : CARTON CARTON STATIONERY CENTRE Post Office Road, Madurai (S.I) – 625002 5th April, 2002 Messers, Morton & Sons, Virudhunagar. Dear Sirs, We are interested in

hand-purses, advertised in the Indian Express of 2nd April, 2002. We are considering to order a few dozen on a trial basis. The advertisement in the daily paper does not give sufficient information Therefore, please send us the details as to the quality, durability. Thanking you. Your sincerely For Carton Stationery Centre Manager Model 32 : Enquiry letter Tel. 5647 Gram : JOPHNCO JOHN & COMPANY (Exporters of clothes) Kali Temple, Main Road. Madurai – 625 011 1st April, 2002 Messrs. Burn & Company Ltd, Temple Street, Chennai – 600 015 40 RE : Weaving plant Dear 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.IF and FOR 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 manager

Model 33 : Ramchand & Company; Middle Street, Mumbai – 400 001 Dear Sirs, It is our intention to establish a retail agency of your Photo Album,, in this town. We shall be grateful to you, 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 demand in this town. Thanking you Yours sincerely, For Premchand & Sons. Model 34 : Enquiry for supply of uniforms COMMERCIAL BANK 78, Town Hall Road, Chennai – 600020 18th August, 2002 M/s Ramlal and Sons, Cloth Merchant, Chennai 600098 Dear Sirs We need a large number of uniforms for our peons and bearers. White cotton half-shirts and khaki trousers of standard size are required. We shall be glad to receive your lowest quotation We need 200 sets of white cotton halfshirts and khaki trousers If your quotation is found reasonable, we shall place order immediately Our terms are cash An

early reply is requested. Thanking you, Yours sincerely, For Commercial Bank 41 Model 35 : Enquiry for bulk supply GHOSH AND COMPANY 87, Big Bazar, Chennai – 6000098 20th August 2002 M/s Kumari Industries Ltd., M.G Road, Chennai – 600010 Dear 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 in fans and shall order extensively if your prices admit of a reasonable margin of profit. As we are in a position to handle large quantities, we trust that you will make an effort to give a really competitive quotation. I shall compare your prices and the advantages you offer with those of other makers and if satisfied, shall place bulk orders. Thanking you, Yours sincerely, For Ghosh & Co. (Manager) Model 36 : Enquiry for prices Tel.: 578 B. GUPTA & CO LTD (Dealers in Stationary) Mount Road, Kolkata – 700012 8th June . Messers. PN Latha & Co West Street, Mumbai – 400120 Dear 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 For Gupta & Co. 42 Model 37 : Enquiries for prices Tel. : MULI Tel : 4657 MULI & COMPANY (Dealers in Cloths) Delhi Road, Agra – 282001 30th March 2002 Mesers. Dasgupta & Sons West Street, Mumbai – 400115 Dear Sirs, We need bathing towels in the usual sizes in suitable colours and in different qualities to meet the present demand of our customers. Our monthly requirements may range from 4 to 5 grosses So please send us your FOR quotation Please offer us your very best terms so that we may be encouraged to place our future orders with you. on hearing 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 enquiry B.K Manufacturers 2197, West Street,

Mumbai – 400010 24th May, 2002 Messers, Babulal & Co., Big Bazar, Chennai – 600094 Sirs, In reply to your letter, we have pleasure in enclosing a copy of our revised price-list. You may learn from it that owing to further economies in manufacturing costs made possible particularly due to the introduction of new machinery, we are able to announce a reduction in prices which will have an immediate effect. We believe that these reduced prices will serve to stimulate business with you in the forthcoming season. Our representative, Mr., KP 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 Manufacturers Encl : as above 43 Model 39 : Enquiry by an Author B.K Ramu, BE 262, C.MS Compound North Civil Line, Jabalpur th 28 May, 2002 The National Printers Delhi Road, Allahabad Dear Sirs, Re: Publication of a book I have just completed the manuscript of a book on “RADIO MACHANISM” in

English and Hindi. This book will be very useful not only to laymen but also to the students and radio business people. My book has been 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 terms and conditions that you prescribe. You can have your own terms and conditions for publication Expecting your early reply. Yours sincerely B.K Ramu Model 40 : Enquiry for bulk supply RAM CONSTRUCTIONS (Dealers in construction materials) Cape Road, Nagercoil 629 001 th Dated 11 May, 2002 The Steel House, Park Street, Madurai 625 001 Dear Sirs, We read with interest your advertisement in the Indian Express Daily of 10th May and are impressed by the descriptions of steel screws and fittings made by you. We are leading construction contractors and dealers in construction materials in this

area. The demand for steel 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 steel fittings may be about 5 lakhs. We would like to place regular orders with you Hence, please quote your most favourable prices and terms. Thanking you. Yours sincerely 44 Model 41 : Enquiry for Printing KITAB DEALERS LIMITED (Book sellers) Main Road, Salem – 1 th 19 April, 2002 The Indian Printers, Printing House, Climbatore 641009 Sirs, Please let us know your lowest quotation for printing 5,000 copies of the enclosed manuscript, Modern Theory of commerce. The book must be ready by the end of May 19, 2002 Superior ‘A’ quality paper and binding in stiff board and cloth back are suggested. Half the charges will be paid to you soon after composing 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. 45 Chapter IX “OFFERS” AND “QUOTATIONS” Both the terms “Offers” and “Quotations” convey the same meaning, but there is a slight difference between the two. Quotation is supplied in reply to an inquiry. An offer can be made to a large number of customers in the form of general terms and in the form of printed circular letter. A specific offer to a particular article in question is sent to the needed person only. Thus we can see that a general way of an offer 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 at the specified price and conditions and within the specified time only, because prices and availability of goods 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 may include the comparison with other similar products, and retailers will be able to know the advantages of a particular 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 in newspapers. It the manufacturer will advertise his products, he will meet all the expenses. If in any local newspapers such an advertisement is made along with the name of the retailer or agent, the expenses for such 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 customer ceases to order, the businessman should enquire the reason for the same and should be ready to satisfy him. Special care and attention should be taken to get back his interest in his product. He can be attracted through discounts and concessions. Quotation is sent against an enquiry. It

contains all the information of the product Every efficient businessman 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.OB = (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.OR (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.WO (Cash With Order): Cash must be sent when the order is placed. C.OD

(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.IF (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. Carriage Paid: The seller is responsible for delivering the goods at his cost to 46 the nearest station to the buyer. How to answer a letter of Enquiry 1. Thank the enquirer for the enquiry 2. 3. 4. 5. 6. 7. Reply should be sent promptly. Write the reply in clear language. Additional information, not asked, can be given with advantage and to build goodwill. State the period for which the quotation is valid. Give an undertaking as to the quality of goods demanded. 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 quotations At Station This means that the seller will make free delivery to the Railway station nearest to the buyer : but all the costs of carriage by railway will be met by the buyer. F.OB (Free on Board) A price quoted “f.ob” means that the goods will be put on board the ship at the seller’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, in fact, is to be paid when the purchaser collects the goods himself from the warehouse, where they are stored 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 pay promptly, 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 the postman 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.OR Free on Rail: The charges of loading the goods into wagons are payable by the seller and are included in the quotation. Gross Weight This is total weight of the goods and the container. Loco The price of goods at seller’s warehouse or factory. 47 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.IF Cost insurance freight : these prices are included in these quotations. C.WO Cash with order : It is a type of advance. Cash must be sent when the order is placed and not when the goods are delivered. Model 42: Reply to an Enquiry Tel : 3874 Gram : Singer SINGER COMPANY OF AMERICA Palace Road, New York, 15th Aug., 2002 The Hindustan Machine Tools Ltd. Bangalore – 560 001 Sirs, We thank you for your enquiry dated the 14th of July, 2002. We have forwarded to you separately a complete 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 paid within 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. 2002 M/s. Das & Co, Patna. Sirs, We have your enquiry letter of 13th Sept; but target to inform you that we have only steel almirahs in our stocks. However, we have handed over your letter to M/s Mukherjee & Sons, who deal in furniture and you will soon hear from them. 48 As we are dealers in almirahs, you will be interested in our products and so we take this opportunity to send you a copy of our latest catalogue. We particularly draw your attention to the special terms 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, 2002 M/s. Jain & Co Chruch Road, Mumbai – 400001 Dear Sirs, PUMP SETS We thank you for your courtesy extended to

our representative, when he called on you recently and demonstrated 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. 15 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 sets are guaranteed for a period of two years. During this period oiling, repairing, replacement, etc, will be done 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 your valuable order. Thanking you. Yours sincerely, For Suntalsons & Co. 49 Model 45: An offer to a retailer Gram : Bose

KOLKATA TOOTH PASTE CO. Kolkata – 700 012 15th Sept., 2002 M/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 paste which we have already placed in the market. This product is the result of a long and careful research and we 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 have received many enquiries from different parts of the country including your district. The public have appreciated the merits of the product and we are confident that this tooth paste will have a quick selling line. 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, 2002 The General Company

Sardar Road, Mumbai – 400121. Dear Sirs, Our record shows that we have not received any order from you the last three months. We have had no complaint about the goods supplied to you. we hope that you have had complete satisfaction It is possible that you may have felt some dissatisfaction of which we have not been informed. If it is so we shall be glad to have an opportunity to look into the matter, because we always try to satisfy our customers 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 look at it 50 We sincerely hope that we shall soon have the pleasure of getting your orders and we assure you that we shall give our utmost care to execute them. Yours sincerely For Cooking Appliances Ltd. . Sales Manager Encl : as above Model 47 : Follow up letter to an old customer MALHOTRA TRADERS

AMINABAD, Agra – 282001 15th May, 2002 M/s. Ramlal & Sons Home 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 rather unusual. Kindly let us know dissatisfaction, if any, and we shall be pleased to go into it. We did not receive any complaint from you so for. We have recently added new items to our existing range of products. We specially wish to bring the items to your notice. The new items are in great demand in your city The competitors are doing good business, 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. 51 CHAPTER X TRADE ORDER After receiving the quotations, if the offer is favourable, the buyer may accept it by

sending a letter of acceptance. It must be understood that by sending the acceptance letter a contract arises between the seller 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 embody the requirements. Detailed columns can be seen in a blank order-form In an order form we can find, SNo, name of the articles, price quantity required, total price, remarks etc. Before placing an order, we should clear 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 payment A price-list is also sent to the buyer by the seller. The buyer may bargain for some reduction in prices If so, the price for the item should be settled first. When the price-list is strictly adhered to, the seller’s price is written If a buyer mentions the price in his order, the seller cannot exceed the limit without communicating to him. It will also be essential to mention whether he is willing to purchase on cash or credit basis. The way of making the payment should be mentioned-by cheque, bank draft, etc. 3. Delivery period Time of delivery is an essential matter. Therefore just as in the case of quotations, in the order also the buyer should give the time limit, within which period the goods must be

sent to him. It is important to not that if the buyer is not giving the date, he cannot blame the seller for any delay that may happen in dispatching the goods. 4. Mode of carriage If the transport facilities are not easily available and if there is no arrangement for sending the goods, the buyer 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 seller has 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, st 31 August, 2002 The Sales Manager, Sales Corporation, Millwall, London E. 14 Dear Sir, Thank you for you quotation of 5th August, 2002 and for supply of samples. The terms and conditions given in

your letter are accepted. So please supply the following items through SV Transport Company 1. Table cloth “A” @ Rs. 100/- each One gross 52 2. Napkins “S” @ Rs. 15/-each Two Grosses 3. Big Towels “X” 4. Small Towels “A” @ Rs. 78/- each One gross @ Rs. 38/- each One gross The payment will be made only after the receipt of the goods in good condition and as per specifications. Thaking you. Yours faithfully, For Marrison Sales Depot. K.IJohn 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 & SONS No. Kalai Street, Contonment, Mumbai – 400010 1st Sept., 2002 M/s. Raju & Company Horby Street, Chennai – 600110 Dear Sirs, We thank you for

your letter alongwith the quotation dated 25th Aug. 2002 Since our customers are pressing for the hair – oil of your firm, please dispatch immediately 500 bottels of medium size hair – oil by passenger train. You may please meet all the expenses of sending them and include in the bill. Your terms 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 . 53 Model 50 : Order NATIONAL TRADERS Coorg Street, Assam, 31st Aug., 2002 M/s. Jordan Mart Park Street, Mumbai – 400011 Dear Sirs, We have carefully tested the samples you sent along with the letter of 20th Aug., 2002 and are pleased to convey that we have been impressed favourably. Therefore, we wish to purchase a hundred number 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 right to

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 confirmation Telephone : 23457 Gram : Coal INDIAN COAL LIMITED Stoking Park, Kolkata – 700016 st 31 Aug., 2002 The Yarn Traders, R.S Steel, Kolkata – 700010 Dear Sirs, We thank you very much for your order dated 25th Aug., 2002 but regret to inform you that the required 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 ordered items. If so, please confirm us by return of post. Awaiting a favourable reply. Yours truly, For Indian Coal Ltd. . (Depot Manager) 54 Model 52 : Order for goods STATIONERY CENTRE Commercial Road, Agra – 282 003 23 March, 2002 Messrs. Harris Mart Delhi 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. 400 500 Nos. 2. Indian ball-pens ‘C’ type @ Rs. 300 500 Nos. 3. Lead-pencils of Super @ Re. 050 1000 Nos. 4. Copying-pencils of medium ‘B’ @ Re 050 1000 Nos. 5. Copying-pencils of super ‘A’ 1000 Nos. @ Re. 070 All the items should be of the best quality as they are required for sale to students and office staff. Please pack them very carefully in a box and send them immediately. The amount of the invoice may be collected by negotiating the Railway Receipt through the Punjab Bank of India. Thanking you Your Sincerely For Stationery Centre Model 53 : Placing a trial order PREMCHAND STORES Prem Mahal, Madurai – 625008 9th June 2002 M/s. Bright & Sons Salem. 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 order is FOR price at Madurai. It is a trial order and, therefore, request you for an additional discount of 5% On receipt of the goods here, in good condition, the payment will be made against the bill within two weeks. Thanking you. Yours Sincerely For Premchand Stores . 55 Chapter XI STATUS ENQUIRY In the course of business, many problems may arise. The main problem is that of supplying goods on credit basis Goods may be sold for cash or credit. If the sale takes place against cash, there will be no problem But in business, often we have to give on credit. Moreover, a business cannot prosper without granting credits While granting credit or loan, we must try to minimize the risk involved in such a transaction. 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 position and creditworthiness. If a firm receives an order to be executed on credit

basis, it must supply the goods only after confirming the soundness of the parties. Such information can be had from friends, other well-established firms, bankers, etc If the reply is unfavourable, goods must not be supplied, because businessmen 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 unknown party might be a wealthy party in respect of business. Therefore, it is essential that proper care should be taken, when asking for the names of references, and it should not create bad feelings in a buyer. If such a letter wounds his feelings, the seller will lose his patronage. Business people must always aim at promoting 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 that bankers will supply such information to our bankers only. So it is better to deal status enquiry letters through our banks When a status enquiry letter is received, a reply is sent and the nature of the reply depends upon the knowledge 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 say anything about the party. Hence the replies may be of three kinds. 1. Favourable replies 2. Unfavourable replies 3. Non-committal replies Vague enquiries can produce only vague information. Therefore, the trader should be very precise in his enquiries 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 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 56 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, 2002 Mr. Ramlal Seth, Bank Road, Madurai- 625 001 Dear 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 references alongwith your bank reference. This will enable us to complete the formalities necessary to establish your firm’s credit Getting trade and bank references is a general policy. We always request our new customers to 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 are pleased to have the opportunity of adding your name to our list of credit accounts. Hope this opportunity will be beginning of a long and happy association with you. Thanking you. Yours sincerely Model 55: Letter giving reference RAMLAL SETH (Dealers in toys) Bank Raod, Madurai-623001 20th May, 2002 M/s. Desai Brothers,

Mumbai-400 040 Sirs, Thank you for your letter of 10th May. I feel pleasure in giving the names of the following business houses as references: 1. Modern Stores Main Road Madurai – 1 2. General Stores Near Bus Stand, Madurai – 1 Our bankers are State Bank of India, M.G Road, Madurai Please complete your formalities as early as possible. Thanking you, Yours sincerely, 57 Model 56 : Status enquiry from a seller to a prominent businessman Tel. 9769 Gram. : MEHTA MATHEW & SONS (Publishers & Booksellers of Indian Book in all language) Gandhi Nagar, Street Palace, Bangalore – 560002 5th Sept. 2002 The Manager Prem Book Depot, Agra – 282003 CONFIDENTIAL Dear Sir, We have just received an order from the Great Book Sellers from Agra and they want to purchase on credit basis 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

name for reference purpose We fully assure you that any information supplied in this regard will be treated as most private and confidential. At the same time, we also assure you that similar assistance can be had from us, when such occasion arises. Thanking you Your sincerely For Mathew & Sons P.M Mathew Model 57: Asking for names of reference. Tel : 2172 Gram : THOMSON THOMSON & COMPANY 26, Deleep Road, Sent Fort, Bangalore – 560018 5th Sept. 2002 M/s. Raj & co Mahal Street, Kolkata – 700071 Dear 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. I shall be grateful to you if you will send us the names and addresses of two firms of your town, as early as possible. 58 We request you to specify the period for which you require credit. Thanking you Yours sincerely, For Thomson Co., Kolkata Manager. Model 58: Concerning

Status of firm RAMNATH BROTHERS 13 Raman Street, Kolkata – 700014 15th Setp. 2002 M/s. Patel & sons, Church Gate, Fort, Mumbai – 400018 Dear Sirs, We received an order from M/s. Ghosh & Sons As the firm is quite unknown to us, we wish to have your opinion concerning their financial soundness and business reputation. Moreover, they demand credit business 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. The State Bank of India, Jabalpur. CONFIDENTIAL Sirs, Will you please obtain for us credit report of M/s. Mohanlal & Sons They have given us your name as a reference. They wanted to purchase goods on credit up to the extent of Rs 4,000/- Is it safe to grant this

credit? Your suggestion in this respect will be highly appreciated. An early reply is earnestly solicited. Yours sincerely. For Manohar & Company. 59 Model 60 : Letter taking up customer’s reference TRIVEDI & COMPANY Thallakulam Madurai – 625010 25th June, 2002 The Manager, Johnson & Sons, Big Bazar, Aruppukottai-626 101 Sir, Messrs, Chettiar and Sons of Aruppukottai have asked us to open an account with them and gave given 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 the extent of Rs. 30,000. Any information with which you may favour us will be treated as confidential, and we assure you that 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 & company Model 61:

Enquiry letter with customer’s reference Gram : Seller Tel. 18744 SELLERS & COMPANY st 1 Floor, West Street Way, Agra – 282010 5th July-2002. M/s. Sahey & Co Patna – 800 011 PRIVATE & CONFIDENTIAL Sirs, The Mumbai Mart of West Street, Agra have requested to open an account for their firm. They in their letter have given us your name as a reference. Therefore, will you kindly inform us about the financial position and soundness of the firm. The average 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 be rendered 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) 60 Model 62 : Making a credit enquiry to a firm Gram : Mahesh Phone : 4653 MAHESHWARI TRADERS Burra Bazaar, Kolkata – 700012 5th Nov, 2002 M/s. Mohanlal &

Sons, Bajaj Street, Madurai – 325002 CONFIDENTIAL Dear Sirs, Messrs. Krishna Trading of Madurai have placed an order with this firm and wish to have credit of Rs 7,000 for three months. They gave your name for reference and stated, that you have the best trade relations with them I shall be grateful to you if you will please inform me by return of post whether, to your opinion, is it 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 to reciprocate. Thanking you Yours truly, For Maheshwari Trading Model : 63 : Asking for credit and giving references OWEN & COMPANY 6,Main Street, Allahabad. th 5 June, 2002 M/s. Alladin & Company 23, Lal Street, Madurai – 625019 Sirs, We thank you for your quotation dated 10th June and shall be glad if you will please send us the goods mentioned in the enclosed order against our acceptance of a 60 days bill for the amount of the invoice. We give the

names of the following firms as reference to enable you to inquire into our financial standing. 1. Messrs Sharma Trading Co Princess Street, Madurai – 625005 2. Messers Mossa & Co Near Bus Stand, Madurai – 625001 61 Our 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 above Model 64: Favourable reply PATEL & SONS Church Gate, Fort, Mumbai-400001 10th September, 2002 M/s. Raseth Brothers, 13, Raman Street, Kolkata – 7000108 Dear Sirs, We have your enquiry dated the 5th of Sept We are glad to inform you about the firm. They enjoy sound financial position and full respect in the local market. We have been dealing with this firm for the last 15 years and our account with them runs into lakhs of rupees. They always take the advantages of cash discount They are very punctual in payment. Hence we recommend that you can

give them credit for an amount even beyond the sum you have mentioned. Yours sincerely, For Patel & Sons. Model 65 : Most favourable reply Gram : William Phone : 5874 WILLIAMS & COMPANY Park Street, Mumbai – 400010 5th Sept, 2002 M/s. Parkinson & Sons, Kolkata – 700018 CONFIDENTIAL Dear Sirs, We are glad to receive your letter of 30th August, 2002 M/s. Robinson Trading Company is a sound firm and has carried on in this town for many years. They have the business ability and enough finance with them We have our business transactions with the firm and allow credits and our confidence has never been misplaced. Yours sincerely, For Williams & Co. 62 Model 66 : Non-Committal reply DUNNIMOR & BROTHERS Street Road, Patna. 31st August, 2002 M/s. Rajesh & Sons Street No. 1 Lucknow. Dear Sirs, In reply to your letter of 29th August, 2002 we inform you that we have only cash dealings with the firm you have mentioned. Therefore, we regret to inform you that we

are unable to express an opinion on the financial position of M/s. John Mathew & Sons Yours faithfully, For Dunnimor & Brothers. . Model 67 : Banker’s credit report National Bank High Street, Patna. Gram : National Phone : 8735 5th Sept. 2002 M/s. Raju & Company Agra. Dear Sirs, It is against the custom of the bankers to give such information to any parties concerning the financial position of a firm. It is, therefore, advised that an application may be submitted through your banker 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., 2002 The Seller & Company 1st Floor, West Street Agra. 63 STRICTLY CONFIDENTIAL Dear Sirs, We have your letter of 5th Sept., 2002 We feel sorry that we cannot give any assurance regarding the firm Their financial position was sound upto the death of a partner, a year back. Since then their business dealings

have not been satisfactory and their financial position is considerably weak. Under these circumstances 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 your firm. Yours sincerely For Sahey & Co. Model 69 : Unfavourable credit report Gram : Prem Phone : 7684 PREM BOOK DEPT. Agra Road, Agra. 10th Setp. 2002 M/s. Mathew & Sons, Gandhinagar, Street Palace, Bangalore – 560001 CONFIDENTIAL Dear 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 credit was not profitable, because payments were much delayed. Thereafter we deal with them against cash 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 in questions. They enjoyed sound reputation till the death of the senior partner, which happened a few years age. Since then their dealings have not been satisfactory and so far as our information is concerned their present financial position is not very sound. In these circumstances, we would recommend cash transaction only Please note that the information is given in strict confidence and we disclaim all responsibility for it. Yours sincerely For. 64 Model 71 : Status enquiry MAHESH AND BROTHERS 16, Avenue Road, Kochi – 682015 25th August, 2002 M/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 the enclosed slip We propose to draw on them for this amount at four months. As the firm is quite unknown to us, we ask the

favour of giving us the information regarding their creditworthiness and business reputations. We assure you that the information with which you will favour us, will be treated as strictly confidential. 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. 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, 2002 M/s. Baboolal & Sons Highway, Calicut. Dear Sirs, We are glad to receive your order of 20th August for supplying 500 reams of Sun Brand foolscap paper, 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 of next month. In the

meantime, permit us to say that this is the first order we have received from you. we have had no business 65 dealings with you in the past. So as a custom of our trade we shall be obliged if you will 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 opening a new credit account. We look forward to hear from you as early as possible so that the goods may be dispatched within the time given. Thanking you. Yours sincerely For Ramlal and Sons Model 73 : Letter taking up customer’s reference: RAM MANOHAR & SONS 112, M.G Road Mumbai – 400110 30th Aug., 2002 Messrs. Sardar & Company, Lucknow. Dear Sirs, Messrs. Premchand & Sons of Lucknow propose to buy goods from us on three months’ credit and have given us your name as reference. As the firm is not known to us, we shall deem it a favour if you kindly take the trouble of informing us about their

financial soundness and business integrity. We shall be glad to know specially if we can allow them credit upto Rs. 5,000 at a time We assure you that the information supplied to us will be kept in strict secrecy and we shall be glad to reciprocate similar service 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. 2002 M/s. Ram Manohar & Sons, 112, M.G Road, Mumbai – 400110 Dear Sirs, In reply to your letter of enquiry regarding the status of M/s Premchand and Sons, Lucknow, we are glad to inform you that the firm in question enjoys full respect and confidence in the local market and we also 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 have been carrying on business in this city for many years. We have been doing

business with them for the last five years and we have 66 found them prompt and regular in their payments. We have never hesitated to allow them credit for an amount beyond the sum you have mentioned and our confidence has never been misplaced. Thanking you Yours sincerely, For Sardar & Co, (Manager) Model 75 : Refusing credit KOLKATA SOAP WORKS Beach Road, Kolkata – 700120 18th July, 2002 The Patlipura Stores Patna. Dear Sirs, With reference to your order of 10th July, 2002, we are sorry to state that the information received by us from private sources about your firm is not favourable enough to permit us to meet your wishes. 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.OD basis We hope that, taking into account the high quality of our goods, our low prices and our cash discount of 2% you will accept our suggestion. Yours faithfully, For Kolkata Soap .

67 Chapter XII CONFIRMATION OF ORDERS After the receipt of the order, the seller will fulfill the requirements of the buyers, according to the terms and conditions of the quotation and order. if the delivery takes a longer period the seller is supposed to send a letter of confirmation to the buyer. If he can supply the ordered goods immediately, the seller may not send the confirmation letter Confirmation letter, means the letter of acceptance concerning supply of the ordered items. New customers and old customers are dealt with differently. There may be printed forms for this purpose A personal letter must be sent to a new customer in order to create satisfactory relations. The regular 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 buyer etc, may be stated. It is sometimes possible that an order may be found defective and may create doubts in the mind of the seller Then the

letter must be very tactfully dealt with. The customer should not be blamed for omissions or errors However, the buyer must be informed of them. He should feel that the seller takes care to protect his interest if the goods are not in ready stock. Mention the date of delivery exactly If they are not available, suggest any substitution Model 76: Confirmation HIGGS & BELL Ltd. 16, Wallace Road, Allahabad th 12 December, 2002 Messrs. Parkinson & Partners, Bridge Road, Poona. Dear Sirs, We are glad to receive your order to dispatch 100 Nos. of Photo Album @ Rs 7200 each In your order you have mentioned that the cover of the album should be black. But generally people prefer the blue colour We have ample stock of blue covered albums and we in our stock possess only 40 Nos. of the colour 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 covered albums may be supplied to you. on confirmations of this we

will dispatch them soon Thanking you. Yours sincerely For Higgs & Bell Ltd. Model 77 : Confirmation Gram : Reliance Phone : 9835 RELIANCE ELECTRICAL COMPANY Horby Road, 1st Floor, Mumbai – 400110 8th June, 2002 68 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 be dispatched on or before 12th June, 2002. You will be glad to know that Mr. RM Gopal has been appointed as our sales representative cum-mechanic for your area. Whenever you face any trouble with the goods, please contact him by ringing 3425 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, rd 3 , September 2002. Messers. 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 working in full swing. We are taking steps to compromise with their leaders and bring about a settlement regarding their demands. We fully hope that if the workers and we are compromised we shall take your order in strict rotation 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 Traders Model 79 : Confirmation A.KSHAH & COMPANY D. Naoroji Road, 5th Floor, Mumbai – 400115 3rd Setp., 2002 69 Messers 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 your ordered 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 take every 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 of dispatch, mode of carriage, etc if a part of the requirement is executed clear information must be given as to 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” but regret to inform you that we are unable to supply the particular brand because its production has been stopped. We took

this decision because of the total silence from the customers. Therefore, we believed that 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 than our earlier product. The present brand is the result of two years’ long research and is popular with dealers in almost all cities throughout the country. Therefore, please go through the price-list and let us have a trial order from you as early as possible. Thanking you, Yours sincerely, For Ram Dass & Co. Encl.: One booklet 70 Model 81 : Substitution suggested Gram : Dassa Phone : 4657 P.M DASS & CO 164, High Street, Banaras. 3rd Sept., 2002 Messers Ram Das & Sons. Agra-282003 Dear Sirs, Thank you for your order No. 57 of Aug, 2002 for supplying one dozen Japan Slide Rules Since our stocks have been cleared and the same are to be imported, we are not in a position to supply the same before 15th of Sept. 2002. But we

have German made Slide Rules in our stocks. Both the Japan made and the German made Slide Rules bear the same price and have the same durability. If you prefer the Japanese stuff please write to 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 625002 Dear Sirs, We thank you for your order dated 23rd Aug. 2002 and shall be pleased to arrange the dispatch of your 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. The man who handles the machine can clear all doubts. Please take this advantage You can contact him by dialing 3476 between 2 PM on all working days. Thanking you Yours Sincerely For Orient

Glass Works 71 Model 83 : Treating order from an undesirable party BANARJEE BROTHERS Park Street, Agra-282002 3rd Sept. 2002 Messers Soni & Company, Lucknow – 226008 Dear 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. 21000 (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 and we 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. 2002 Messers Sohanlal & Sons. Delhi – 110001 Dear Sirs, I am glad to receive your order dated 30th Aug. for supplying woolen cloth of 1000 metres But we regret to inform you that our whole factory is

mainly employed in the production of woolen garments to the military departments. Therefore, it may not possible for us to make delivery of your demand within 20 days If however, you can extend the time of delivery by 5 weeks, we shall be in a position to make the delivery of your requirements. Please inform us of your decision. Thanking you. Yours truly, For Small Industries Ltd. 72 Model 85: Execution of an order NATIONAL MILK PRODUCTS Siyyan Street, Temple Door, Bangalore – 560001 2nd Sept. 2002 Messers. Krishna Tradings, Rajendra Nagar, Bangalore – 560028 Dear Sirs, We are glad to inform you that your order No. 67 of 15th August 2002 is ready for dispatch on Monday, the 4th September 2002. Our delivery van will deliver the goods at your door by the evening along with the invoice and delivery note. The question of discount asked by you has been referred to Board for taking a favourable decision and the same will be intimated to you in due course. If it is approved, we

shall make a credit to your account with the 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. 2002 Messrs. PM Das & Co Kolkata – 700004 Dear Sirs, We are glad to receive your order dated 25th August 2002. The monotype printing machine is being dispatched today by the passenger train. The bill in triplicate and the railway receipt are enclosed The machine was tested before dispatch, and we believe that you will find its performance quite satisfactory. 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 above 73 Refusal of an order Sometimes, the businessmen will have to refuse certain orders due to

many reasons. A few cases where 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. 2001 Messrs. RP Soni Trading Co, Lucknow – 226005 Dear Sirs, Many thanks for your order dated the 29th of November for supplying the drilling machines of Messrs. Ram & Co. We regret our inability to supply them, as we do not represent that firm You

might be aware that Messrs Lalsons, Manufacturers of this area are producing similar type of drilling machines. If you choose the drilling machines of M/s. Lalsons, please let us know by return of post, so that we can send you the catalogue along with the price-list Yours sincerely, For Malik & Bros. Model 88 : Inability to Supply Gram : Unique Phone : 1245 UNIQUE DEN & CO. Palace Road, Allahabad. 10th December 2002 The Crompton Ltd. West Street Patna Dear Sirs, We are glad to receive your order for 50 grosses of ball pans. Since the Government of India has restricted imports of foreign ball-pens and due to exhausted stocks; we are not in a position to make delivery. However, a 74 catalogue of Indian ball-pens is enclosed. It will give you an idea about the durability and fineness of our Indian ballpens 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 may be the delay in the execution of orders. Unforeseen situations also create impossibility of execution, such as variation in prices, insolvent party, etc. the letter cancelling the order most mention the reason for the cancellation If the buyer is cancelling the order, the communication must reach the seller before execution of the order. if the cancellation letter is received after the goods are dispatched, the buyer should make good the loss. If the buyer wants to cancel the order we must hurry up and take immediate action so that the 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 rd 3 Jan. 2002 Messrs. Raj & Sons, Kalai Street Mumbai – 400033 Dear Sirs, With reference to our order No. 57 of 16th De, 2002

we have heard nothing from you the reason is not known to us. The period for delivery of our demand has already expired and no reaction is found from, your end. So we are compelled to cancel our above – mentioned order, which may please be noted. Yours sincerely, For Raju and Company Model 90 : To effect correct supply Gram : Shah Phone : 1235 A.K SHAH & COMPANY D. Naoroji Road, Mumbai – 400051 rd 3 September 2002 M/s. Sharma Stores, Cantonment, Jabalpur, Dear Sirs, 75 Please refer to our order No. 125 of 14th November, 2002 Our salesman, who visited your shop last week, has informed us about the manufacturing defects of your products. Therefore, please make delivery of the machines strictly according to the quotations and specifications 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 th 18 April,

2002 Messrs, Bhavan Agencies Palace Road, Gwalior. Change of price Sirs, Thank you very much for your order No. 74 of 14th April 2002, but regret to inform you that the prices of radio valve B 12 have increased from Rs. 900 to Rs 110 owing to the imposition of surcharge tax Therefore, I am not in a position to supply your goods at the earlier price. The imposition of surcharge tax is applicable tax is applicable to all the Indian dealers as a whole. Therefore, you find no possibility of getting 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 Messrs. Chaterjee & Sons, Raman Street, Allahabad. Sirs, In response to your letter dated 31st March, we regret to stat that the information we received about your 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 can open an account for you. in the meantime, we suggest that you are at liberty to order for goods on a COD basis We offer high quality goods along with 2% discount for cash. Thanking you Yours truly, For Rajesh & Co. 76 Chapter XIII COMPLAINTS AND THEIR ADJUSTMENTS Irrespective of the best managed business, mistakes and errors will often occur. Every businessman will take precautions and care in order to satisfy his customer, because he wants to increase his sales. If any customer is dissatisfied, he may turn away from the business door. But whatever be the motive to satisfy the customers, the businessmen often receive letters of complaints about delay in dispatch, wrong dispatch, errors in invoice etc. Sometimes when a customer is dissatisfied or annoyed he immediately drafts a letter of discourteous nature and

sends it to the businessman. But he should not do so A letter of discourtesy or displeasure or anger will do more harm than good. So it should be remembered that the complaints most be genuine and written in a courteous manner. A courteous letter cannot only win the cooperation but reap the best results When a complaint letter is sent, it is understood that it communicates the errors or mistakes made by the seller. It requests him to rectify those errors or mistakes at his end A letter of complaint must be persuasive in nature and courteous in language. Let us discuss the chief characteristics of a well-drafted complaint 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 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 77 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 : Complaint Gram : Davis Tel. : 4235 DAVIS & COMPANY Delhi -110040 21st Sept. 2002 M/s. Simmen & Co, Banaras Road Banaras. Dear Sirs, Please refer to our order dated 13th September based on your price list of July. We ordered 500 kilograms of rock powder. You have sent 50 packets each containing 10 kilograms But 5 packets our of the 50 contain

only 8 kilograms of rock powder. The underweighing packets are kept unopened Please let us 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 For Davis & Co. Model 94 : Complaint – Inferior quality BROWN & DEVINE LIMITED Church Road, Agra (U.P) Agra 282002 21st Sept. 2002 M/s Roberts & Co. Kolkatta – 700012 Dear Sirs, Please refer to our orders No. 92 of 10th Sept 2002, written we ordered 100 numbers of table cloth of 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 reduced price ie, 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.

78 Model 95: Complaint – Delay in delivery Gram : Progress Tel : 2435 PROGRESS BOOK DEPOT M.P Road, Mumbai – 400012 21st Sept., 2002 M/s. Rajesh & Sons, West Street, Kolkata – 700012 Dear Sirs, With reference to our order No. 42 of 2nd September, no action has been taken at your end These books 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 replies to the students will affect my sales. Therefore, it is requested that the books may please be dispatched immediately, through passenger train. In future, such delay may be avoided. Yours faithfully For Progress Book Depot Model 96 : Complaint – Delay in delivery Tel. : Reme Tel: No. 2436 RAMESH & COMPANY West Street, Kolkatta st 21 Sept. 2002 M/s. Mahesh & Sons, Palace Road, Agra Dear Sirs, Please refer to our letter dated 1st of September, which has been acknowledged

by you vide your letter dated 8 September, but the goods have not been receive d so far. This delay causes much inconvenience for us to deal with those buyers, for whom the order has been placed with you. th Please refer to your letter mentioned above, in which you understood to send the goods on or before 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. . 79 Model 97: Complaint – Delay in delivery KAPURCHAND AND COMPANY Dealers in woolen clothes Chandni Chowk, Delhi 11006 st 21 Sept., 2002 M/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 nothing from you the winter season is drawing near and we want to stock woolen

clothes as there will be great demand for the same. From the first week of next month, the customers will be visiting our shop. We have clearly mentioned the date in the order itself, i.e 10th September, But we regret to say that we have not heard anything from you We shall be grateful to you if you will send them immediately through special transport service. Unless they 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 unaccounted DAS & COMPANY Chittaranjan Colony, Kolkata 21st September, 2002 M/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 has been prepared on the basis of the price list of August. In the price list you have mentioned that a discount of 10% will be

given to all orders above one thousand rupees. Our order amounted to Rs 125600 (One thousand 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. 80 Model 99 : Complaint – Misbehaviour of staff HALKETT & CO. Chahop Road, Allahabad. st 21 Sept. 2002 M/s. Jacksons, Agra. Dear Sirs, I visited your shop on the 15th of this month in order to purchase some good cameras for presentation. You were absent on that day and the salesman were new to me. They perhaps, could not recognize me as a dealer in photography. One of the salesmen of your shop refused to show me all the models of cameras, perhaps thinking that I may not purchase them. Fortunately a friend of ours visited the shop On hearing the talk between me and your man, the friend told him of the business relationship of mine 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 M/s. Prem Book Stall, Agra. Dear Sirs, Thank you for your consignment containing 150 copies of the dictionary of John and Mathew. But in two copies it is noticed that pages from 356 to 372 are missing. The mistake may have occurred in the printing process Both are not sale-worthy. But if we can cut half the price, they may be sold A dictionary is 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 st 21 Sept., 2002 M/s. Brown Sons & Company, Lucknow – 226005 81 Dear Sirs, We have just received

your letter of the 19th Sept. 2002, but regret to learn that the clips of some pens are loose fitted. It is our practice that before making a dispatch, we carefully examine each and very item. Still such defects 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 we receive them. The expenditure you incur for sending those pens back to us, will be met by us, or adjusted in the next payments from your side. We may be excused for this inconvenience caused to you. in future we will take every care before dispatching Yours sincerely, For Hackwell & Partner. Model 102 : Allowing a complaint claim SUNSHINE WORKS Church Road, Agra. st 21 Sept. 2002 M/s. Chakraborty & Sons Kalkata. Dear Sirs, We have your letter dated 11th September, 2002 and noted with regret that your are dissatisfied with the goods we sent you. if the dry milk powder will not fetch a market on the

face value, we shall allow, as you have 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 might have 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, 2002 M/s. Trivedi Stationers, Cantonment. Bhopal. Dear Sirs, Please refer to our order No. 198 of 2nd September, 2002 Our order was for supplying 500 sleeveless baniyans of 32” size @ Rs. 30 each Today the goods have arrived But we are surprised to see that 100 baniyans are of size 36”, 100 baniyans are of size 30” and the remaining are of the ordered size. The invoice you have sent us contain the price of 32” sleeveless baniyans. As per the order, the invoice is correct, but when the bill is tallied with the goods, it differs widely. Therefore, please let us know what is

to 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. 82 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. 2002 M/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 of the oil sent to you by us. The thickness you complain of the oil is due to their stay in our stock for a considerable period of time This is the usual defect you will find in every type of similar oil. This type of defect can easily be removed by slightly heating them before use. This will make

the oil thinner and restore them in their normal condition In view of our long-standing business connection with you, we are willing to allow you a special discount 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. 2002 M/s. Manoharlal Brothers, General Merchants Kanpur. Dear Sirs, We regret to learn from your letter of 20th September, that 10 tins of our Baby Food supplied to you have been found unfit for consumption. On receipt of your complaint, we have investigated into the matter and have come to learn that 10 tins from the old stock had been inadvertently mixed up with your consignment. This was done by a new employee 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 prevent recurrence of such mistakes in future. We are ready to replace those tins, but as our stocks of this brand are exhausted, we are sorry that we cannot offer you the substitute at once. However, we agree to allow you a special discount of 10% on the 83 consignment by way of compensation for these defective goods if you can, of course, dispose them in other 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 the inconveniences caused to you for our negligence and undertake to execute your future orders with utmost care. 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. 2002 The All in All Traders, Bhopal. Dear Sirs, We regret very much to know from your letter of 25th August that you have received B grade goods instead of A

grade. We must ask you to accept our apologies for the error in supplying you with a wrong brand of goods The matter is receiving our attention and we are awaiting further information from the Dispatch Department. 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. 84 Chapter XIV COLLECTION LETTERS No business can be run without granting credit. A firm has many customers and most of them may be permanent customers. As the relationship becomes close with customers, it is obligatory on the part of the seller, to grant them credit sales, which are an important feature of retail traders as well as the wholesale traders. 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 his capacity to pay back the loans. But irrespective

of the precautions, problems of non-remittance against the credit sales will arise even after correspondence thread with the buyer. Businessmen keep proper records of buyers; but sometimes, due to oversight, the purchasers are overloaded with credit sales. Besides this buyers 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 of collecting 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 5. Demand and warning 85 Model 107 : First letter asking payment Gram : RAJESH Phone 2456 RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout Jabalpur. 6th December, 2002 M/s. Prakash & Co Ltd Bazaar Street, Mumbai-400001 Dear Sirs, May I invite your attention to our account. A sum of Rs 49500 is due from you the same amount is lying unpaid since last month. If realize that you are busy at this time and probably this may be the reason why the amount has escaped your attention. Therefore, this is written just as a reminder based on the enclosed statement Yours sincerely, For Rajesh Trading Co. P.NRajesh Encl: as above STATEMENT OF ACCOUNT RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Jabalpur. 6th December, 2002 No. 470/Bom Dr. to M/s Prakash & Co, Bombay Date Particular Price Paid amount Balance 1-11-. Goods purchased as per bill No. 995.00 500.00 495.00 An early remittance is highly solicited. Rajesh Trading Co., Model 108

: Second letter asking payment Gram: RAJESH Phone : 2435 RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Jabalpur. 86 21st December, 2002 M/s. Prakash Co Ltd, Bazaai Street, Mumbai – 400001 Dear Sirs, Ref. : Statement of Account No 749/Bom dt 6th Dec 2002 I wrote to you on 9th December, 2002 on the account mentioned above. But I have heard noting from you so far Perhaps the delay is due to certain unexpected reasons or the reminder letter might not have reached you. therefore, I enclose again a duplicate copy of the statement of account and request you to make an early payment. Thanking you, Yours sincerely For Rajesh Trading Co. Encl : as above Model 109 : Third letter asking payment Gram : Rajesh Phone : 2435 RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Jabalpur. 6th January, 2002 M/s. Prakash & Co Ltd Bazaar Street, Mumbai – 400001 Dear 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 two reminders, dated 16th Dec. and 21st Dec 2002 Please send your cheque for full amount without further delay The account could not be closed because of this nonpayment. Therefore, remit the same on or before the 15th January, 2003 Yours sincerely For Rajesh Trading Co. . Model : 110 : Fourth letter threatening legal action Gram : Rajesh Phone : 2435 RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Jabalpur. nd 22 January, 2003 87 M/s. Prakash & Co Bazaar Street, Mumbai. 400001 Dear Sirs, My reminders of 16th December 2002, 21st December, 2002 and 6th January, 2003, regarding the long outstanding account has not been attended by you. I very much regret this state of affairs I now inform you that unless you remit the amount of Rs. 495/- in full, within January I will be compelled to place 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. 2002 M/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 present market is also dull. There were days without a sale even for Re 100 Under these circumstances, I shall be grateful 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 Phone : 2435 RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Jabalpur. 20th January, 2002 88 M/s. Prakash & Co Bazaar Street, Mumbai. 400001 Dear Sirs, Received your letter of 10th January, 2002 and I understand the position shown by you. hence I have decided to

allow postponement of the payment up to the 10th of March, 2002. I also enclose a bill of Exchange for Rs 495 top be returned duly signed by you, maturing on 10th March, 2002. Your request for two 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, 2003 M/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 cash discount of 1% in all payments made within the specified time for payment. You never fail to enjoy the discount 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.

2002 The Central Stores, Agra Road, Agra. 282002 Dear Sirs, With reference to your two reminders of 15th November and 1st December, 2002. I am very sorry to state that the payment of your bill could not be made because of the long absence of our accountant. Now the 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. 89 Model 115 : Collection combined sales letter Poineer Engineering Company P.B No 3655 Mumbai – 400028 Dated. M/s. Rajesh Agency, Napier Town, Agra – 282010 Sirs, Our books show that a sum of Rs. 150 is due from you since a couple of months Will you be kind enough 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 you have 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. th 6 Dec. 2003 M/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. In view of the circumstances stated in your letter, we have decided to extend to you a month’s time to settle our accounts. By extending the period for payment, you lose the cash discount of 2% of payments made strictly within 30 days. Hope without writing a reminder, you will settle the dues on or before the 6th January, 2004. Yours sincerely, For Mohan Manufacturing Co., Model 117 : Collection letter BABA MEDICAL STORES Bazaar Street, Mumbai – 400001 6th Dec. 2002 The Central Medical Shop Jabalpur. 90 Dear Sirs, May we draw your attention to the sum of Rs. 250 due from you since last two months, against the Bill No 675 of 1st Oct., 2003 Perhaps you might have overlooked the account

Please refer to our bill and arrange 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. 2003 The Central Medical Shop Jabalpur. Dear Sirs, In response to our letter of 6th Dec. 2002, we have heard nothing from you In the letter we asked you to settle 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. 2004 The Central Medical Shop Jabalpur. Dear Sirs, No. reply has been received from your end to the previous two reminders of 6th and 21st December 2003, requesting you to remit the amount Rs. 250

against Bill No 654 of 1st October, 2003 We are unable to give any more time for settlement of this small amount. Though the amount is small we can’t afford to write it off, since drops of water make an ocean. Therefore, we insist that you should 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 91 Bazaar Street, Mumbai – 400001 30th Jan. 2004 The Central Medical Shop Jabalpur. Dear Sirs, We have heard nothing from you against three reminders sent to you. now the stage has come to inform you that, if you do not settle the account within 10 days from the date of this letter, we will be forced to take further steps by placing the dealings in the hands of legal agents, without further intimation to 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 th 5 Dec. 2003 M/s. Mahesh Stores, Alleppy Dear Sirs, We have received your letter of 29th November, 2003 and the statement of accounts for Rs. 47500 against the Bill No. 918 of the 1st of November, 2003 Please excuse us for overlooking the invoice owing to 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, th 6 Dec. 2003 The Punjab Trading Company, Bhopal Dear Sirs, We are at a loss ot understand why we did not hear from you regarding the payment against our Bill No. 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-paid envelope for your convenience. Yours sincerely, For Rajesh & Brothers 92 Chapter XV MAKING PAYMENTS When goods are ordered with a

seller, the execution of orders is carried out. The goods are sent as per the mode of payment agreed upon by the seller and the buyer. Along with the goods a delivery note is sent to verify the goods. Different types of payments are made against the purchase, such as cash on delivery, credit for certain period, etc. Cheque and Bill of exchange are popular ways of settling the transactions 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, 2002 Messers Devichand Lal Ltd. 216, Calvary Road, Bangalore – 560 014 Dear Sir, According to our agreement, we have drawn this day upon you bill for Rs. 4,300/- at two months in 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 bill Model 124 : Receipts of goods and remittance

by cheque B.K CORPORATION Kolkata – 700013 14th March. Messrs. Mitra & Company 1237, Post Office Line, Mumbai – 400001 Dear Sir, The books have been received in good condition. We are satisfied with the books In settlement of the invoice No. 1274 dated the 9th of March 2002 we enclose a demand draft for Rs 3,50000 (Rupee Three thousand and five hundred only) which may please be acknowledged. Thanking you Yours sincerely For B.K Corporation . Encl : as above 93 Model 125 : Payment of invoice Simmson & sons 148, Lyons Range Kolkata. 18th March, 2002 Messrs. Martin & Sons Dalal Street, Fort, Mumbai. Dear Sirs, We thank you for your kind letter dated 16th March, 2002 enclosing a cheque for Rs. 15000 (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. th 5 April, Messrs Narain & company Nahar House Delhi. Dear Sirs, We thank you very much for the prompt delivery of our recent order, and this is to inform you that the 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 47575 (Rs Four hundred seventy-five and paise seventy five only). Please acknowledge the receipt and credit us with the amount Thanking you. Yours sincerely, For Stewart & Company Encl : As above 94 Model 127 : Part Payment RAJESH TUBES LTD. Bank Buildings Bhandra, Ahmedabad th 20 March Messrs Jeewanlal Ltd. 1237, Post Office Road, Mumbai Dear Sirs, We have pleasure in sending herewith a cheque for Rs. 300 (Rs Three hundred only) in part payment of your Invoice No. 546 of 13th March for Rs 87600 the remaining amount of the invoice will be sent 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, 2002 The Associated Co. Ltd, Narain Road, Mumbai Dear Sirs, I hereby acknowledge the receipt of the goods which arrived here in an excellent condition. If have to point out that there is an error in the bill’s totaling. The correct amount of the invoice comes to Rs 86500 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 the payment of your Bill No. 9836 dated 4th April 2002 Please send an acknowledgment with a stamped receipt Thanking you Yours sincerely, For Atland Private Ltd., . 95 Model 129 : Letter asking payments VOHRA BROTHERS & CO., LTD Palace Building, Mumbai – 400002 30th April 2002 Messrs. Champaklal & Co Western Avenue, New Delhi. Sirs, I have

been obliged to report to my Directors that your account is still unsettled and they have asked me to explain the circumstances. I have been given permission to hold the mater open till 9th May 2002, but if no remittance is received from you by that date, I regret to inform you that it will have to be handed over to the legal department. Your faithfully, For Vohra Bros. & Co Ltd . 96 Chapter XVI APPLICATION FOR SITUATION Drafting an application for employment is important. A letter of application is like a sales letter, because through letters, the applicant tries to sell his services. Everyone has to work for the livelihood So writing letters of application for a job suitable to one’s own qualifications, in order to sell one’s services to someone in the market for the best price available, is very important. Nowadays, an applicant must realize the severe competitions Therefore, one should take proper care in writing an application in response to an advertisement. If an

applicant fails to catch the attention of the employer through his application, it will find 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 at present is to prepare a biodata of the applicant and send it alongwith a covering letter. Biodata is a statement showing the name of the applicant, his age, qualifications, experience, reference etc. Such a statement is called “data sheet”, “resume” or “Personal history”. Some organizations have their own prescribed forms designed to their needs The prescribed application form has to be completed by the applicants 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 a covering 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 4. Mother Tongue 5. Height 6. Marital Status 32 years (10.101970) Telugu 5’6” Unmarried 7. Qualification: 1. SSIC Secondary Board (Andhra) 85% 2. Higher Secondary Secondary Board (Andhra) 84% 1988 3. BSc (Computers) Andhra University 85% 1991 1986 97 1st Class 1994 4. MBA 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 √ English √ √ Hindi √ Telugu (1) Write √ √ √ √ Tamil 11. Reference: Read √ √ √ √ Prof. Santosh Kumar Professor of Commerce, G.S College of Commerce, Visakapatnam. 530 018 (2) Mr. Mohan Managing Director Applied Electronics Ltd. Mumbai – 400 018 The 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 of Finance Manager, I am sending any biodata for your consideration. Thanking you, Yours faithfully Model 131: Application for the post of Professor 293, C.MS Compound North Civil Lines Jabalpur (M.P) 14th April, 2002 To, The Principal G.S College of Arts & Commerce, Bhopal. Sir, 98 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 apply

for 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 SSIC in first class from the MP Board in 1979 2. Passed MCom in first class in the year 1985 from Jabalpur University 3. Passed LLB 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

Otwani Model 132: Application for the post of an accountant 246, Bus stand, Virudhnagar, rd 23 March 2002 To, 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 to offer 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 also passed the Account Test conducted by the Government of Tamil Nadu in February 1999. I worked as an Accountant for a year in Messrs. Thomas & Co Virudhnagar and I had to leave the post as the Branch was closed down recently. I have good knowledge of accounts and I can prepare final accounts very easily. My age at present is 32 and I possess good spirit and sound health. 99 I am enclosing copies of my documents for your ready reference. The originals will be made available 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 utmost satisfaction 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, 2002 To, The Manager, John & Co. Chennai – 600 018 Dear Sir, Having heard from your Accountant that there is a vacancy for a Stenographer in your office. I would 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 the Higher Grade Technical Examination in Shorthand and Type writing, conducted by the Government of Tamil Nadu. I have been working as P.A to the Principal, GS College of Arts, Chennai for the last 4 years specially 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 the Principal under whom I am working now. I also enclose the certificates of my qualifications for your ready reference In view of my qualifications and experience, I fully hope to get a chance to work in your concern. I shall 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 above Model 134: Application for the post of Accounts Manager Udit Kumar 48, Ansari Park, Naval Base, Vizag – 530 014 16th May, 2002 100 To The Manager, Kamal Motors, Vizag – 530 003 Sir, In response to your advertisement in Times of India of 10th May, I submit my application for the post 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 books properly. I shall be obliged if I am given a convenient time for interview. I shall bring my

certificates and testimonials 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 of duties. Thanking you Yours faithfully Encl: 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, LLB, Advocate Anarkali Avenue, Guntur. (2) Mr. VM Pandey, CA College Road, Vizag – 530005 Language Known : English and Hindi Salary Expected : Negotiable. 101 Model 135 : Application for the post of a

typist 126, Karamchand, Nagpur, 22nd March 2002. To The 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 my application for the post of a typist in your office. I passed my S.SIC Examination in second class in 1998 I also passed the Lower Grade Government Type Writing Examination in the year 1999. At present I am able to type forty words per minute 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 copies of 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 higher authorities. Thanking

you. Yours faithfully, K.P Babu Encl : as above Model 136 : Application for the post of a Mechanical Engineer 253, C.MS Compound North Civil Line, Jabalpur. 30th April, 2002 The following Director, Indian Machines Ltd., Sir, On going through “The Indian Express” of today, I learn that your factory at Jabalpur has vacancies for Mechanical Engineers. Being a person with adequate qualifications and enough experience, I offer myself as a candidate for one of the posts. 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, since 1996. I have considerable experience in the Mechanical side and am more interested in assembling and fitting 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 my documents 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 102 Model 137 : Appointment letter XY Company No. Dated. Mr. You are hereby appointed as a in the grade Rs. with other allowances according to the applicable rules of this company. You will be on probation for a period of two years, during which your services are liable to be terminated, 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 hereby requested 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 DA will be admissible Yours faithfully Model 139 : Asking for reference Dated: To, Sir, Mr. Whom I am considering for employment as a clerk in my personal office at home has given your

name as a reference. Would you be kind enough to let me know your opinion of his character, efficiency and ability to get along with the work. I shall appreciate any information that you give about him Thanking you. Yours faithfully, Model 140 : Response to a reference Dated 103 To, Sir, I am happy to have the opportunity of answering your letter dated. about Mr He is 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 PA to me He was 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 behaviour has 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 and enthusiastic worker. He was my student for the last six years and I have known him personality He has been paced first in the Merit list of B.Com and stood second in the BCom Examination He is an intelligent young man, who feels a thirst for knowledge. I am sure that he can be a boon to any employer. I wish him all success. Principal Model 144 : Application for the post of salesman 1234, Street line Madurai th 25 January, 2002 To, Post Box No. BC 1470 104 C/o The Times of India Chennai. Sir, In response to your advertisement in the “Times of India” of 10th Jan. 2002 inviting application I would 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 a salesman in

Messrs. Ram and Sons, Salem, from 1993 to 2000 I felt the service became of the closure of the 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 is duplicate is enclosed as desired. I also posses light vehicle driving licence since 1995 Thanking you Yours faithfully K.P Govinda Encl : as above Advertisement Firms Government offices, Colleges, etc. make advertisements when they require persons to be appointed The designation, qualification, experience, salary, age, etc., are pre-determined When all these pre-requisites are decided, the next job comes to advertise the needs in a newspaper thus inviting applications 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 all correct information After deciding all the connected matters; a

copy of the advertisement is handed over to the newspaper for publication. Model 145: University of Madurai. Wanted Research Assistants in the Department of Commerce in Madurai University on a fixed salary of Rs. 3,000 per month. 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, etc should reach the st undersigned on or before 1 July, 2002. Candidates will have to appear before the Interview Board at their own expense. 20th June 2002 REGISTRAR Model 146 : Requires a Chartered Accountant Mahesh & Sons Nagercoil – 2 Qualification : C.A Age : 35 Experience: 5 years Salary : Rs. 15,000 plus DA (as per Co’s rules) 105 Apply with full details on or before 22nd Aug. Those who draw a salary less than Rs 10,000 need not apply Negercoil 12th Aug., 2001 General Manager Model 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 of office 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 very willing and hard – worker. We wish him all successes in future. Manager Dated 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 BCom in First Division 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 in

extra-circular activities too. He was a member of college Planning Forum He represented the college in various 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 and deserves every success in life. I wish him all success. Principal Model 149 : Testimonial for a salesman S Chand and Company Ram 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 salesman with us for the last five years. 106 We found him to be hard working. He carried out all his duties to our best satisfaction We never had a chance to complain against his behaviour. He is an honest and loyal person We wish him all successes in his future career. Dated. Manager Model 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 PA to me for the last three years. During the service with us, we found him to be very painstaking and hard working youngman. He carried 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 We regret that he is leaving us. We wish him success in his career. Dated the Manager Model 151 : Favourable reply KAPOOR CHAND & COMPANY 75, Park Street, Kolkata st 21 August 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 has given a good account of himself by his efficient and methodical work and regular attendance. He is hardworking, painstaking and strictly honest in his dealings. From that we have seen of him; we are in a position 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 by superseding the claims of his seniors. Yours sincerely For Kapoor Chand & Co. 107 Model 152 : Character certificate Mohanlal Sons National Highway. Delhi. Dated. To whom it may concern Mr. Ram Manohar, BCom was working in our firm for about five years as Assistant Accountant He is a hard and willing worker and has always shown commendable persistence in making his services more valuable. The firm will be sorry to lose him but wishes to better his prospects. We cordially recommend him to anyone who is looking for a smart young man willing and able to prove his worth. Mohanlal Sons Model 155 : Reply to an enquiry Mahesh Electricals P.O Box No 278, Jabalpur. Dated Messrs Ram & Company. Bangalore Dear Sirs, Referring to your enquiry of 20th August, we are pleased to inform you that Mr. BK Ramu, BCom was working in our firm for the last five years as

Salesman. He has always been found to be exceedingly well-behaved young man, industrious and intelligent. He was relieved of his duties owing to general retrenchment in the sales department. We wish him all success in future career. Yours sincerely, For Mahesh Electricals 108 Chapter XVII BANKING LETTERS Nowdays, it is very essential for the students of commerce as well as for the business people to know 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 discuss the system of deposits. We are concerned with correspondence and, therefore, we describe less about banks 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 a borrower and a lender. When a loan is granted, it is made on tangible security Persons of the highest standing 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 will rectify the problems Moreover, letters may be written for different types of accounts, instructions, deposits, loans, withdrawals, overdrafts, collection of dividends, interest, insurance premium etc. Bankers generally 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 courtesy Types of Bank Correspondence Bank correspondence can be broadly classified into: 1. Letters between a bank and its customers 2. Letters between from HO to its branches and vice versa 3. Letters from one bank to another 109 Model 154 : Requesting a Banker to open an account NIKHIL AND BROTHERS Maniram Street

Valsaravakkam Chennai – 600 087 The 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 with specimen 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, 2002 Mr. Udith Kumar, Uma Electronics Ltd. Chennai – 600 087 Dear 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 decided to honour it Perhaps it was due to over sight at your end. By this payment of Rs 6,500 your account is overdrawn to

the extent of Rs 500 Our normal practice is to insist prior arrangement for overdraft facilities. We would request you to settle the overdrawn amount and maintain sufficient balance in year account to meet such contingencies. We assure you of our best cooperation at all times. Yours sincerely Model 156 : Letter requesting to remit the amount overdrawn SUNDER BANK Valsaravakkam Chennai – 600 087 14th May, 2002 110 Mr. Nikhil, Station Road, Chrompet, Chennai 600 044 Dear 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 request you 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 number of ways in which the bank can assist you. if you have a recurring need of finance, we have a simple provision of

allowing you an over-draft facility on a half yearly basis. There are certain simple conditions that are to be fulfilled I request you to avail to the facility offered. You may call on us during working hours any day Thanking you Yours sincerely Model 157 : Letter asking for overdraft KALA STORE M.G Street, Coimbatore – 641018 10th May, 2002 The Manager Canara Bank Coimbatore. Overdraft We are happy to inform you that our business is progressing steadily since its establishment. We have been able to achieve this mainly because of wide range of consumers goods are readily available in large numbers in our store. There is a good demand for all types of consumer goods We wish to add other lines of goods also Thus we expect a further rise in our turnover. Our present supplies have expressed their 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 a period of three months. This will

meet our present need We can give personal guarantee as a security for the 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, 2002 The Manager Kala Street M.G Street, Coimbatore. 111 Dear Sir, Overdraft of Rs. 1,00,000 We are happy to note the growth of your business within a short period of time. We take pleasure in helping our customers. General practice is to sanction overdraft against collateral securities. We suggest you to provide some collateral security, such as shop, building, deed of any investments etc. If it is not possible, as a special case, 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 sincerely Model 159 : Dishonoured cheque RAJESH BANK LTD.

Cantonment Agra – 282002 24th Nov. 2002 Mr. HS Dubey, P.SH College, Agra 282 011 Dear Sir, I regret to inform you that a cheque bearing No. PR 32435 dated 10th Nov issued by you in favour of Messrs Rajahopal & Sons for Rs. 1,800/- was accepted to make the payment, but the same was returned 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 not wish to return the cheque of our customers for lack of funds. I, therefore, request you to maintain the amount sufficient to meet all the chequ, issued by you in future. Yours faithfully For Rajesh Bank Limited, Agra Agent Model 160: Reply to drawer (dishonoured cheque) RAJESH BANK LTD. Gwalior rd 23 Sept. 2002 The 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. 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. 112 Model 161 : Dishonoured cheque BHARAT & COMPANY Gwalior th 25 Sept. The Agent, Rajesh Bank Ltd., Gwalior. Dear Sirs, I am sorry to hear that a cheque bearing No. AB 4567 dated 15th Sept for Rs 95000 in favour of M/s Jain & Co. was returned to the party unpaid You may notice that my current account balance is Rs. 2,46000 as on date Even then the aforesaid cheque has been dishonoured by you. I request you to let me know the reasons as to why the cheque could not be encashed Yours faithfully, For Bharat & Co. Model 162: Signature not tallied JAIN & CO. Jabalpur, nd 22 Sept. 2002 M/s. Sharma Stationers, Jabalpur Dear Sirs, The enclosed cheque No. 542 dated 15th Sept, 2001 for Rs 530/- (Rupees Five hundred and thirty only) 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 for encashment. Yours faithfully, For Jain & Co. Model 163 : Requesting to produce the passbook Bank of Jabalpur Jabalpur th 15 Dec. 2001 M/s Ramesh & Co. Jabalpur Dear Sirs, Since our financial year is ending on 31st Dec. 2001, it is requested that your current account passbook may e sent to this office so as to enable us to make the entries. Yours sincerely Agent Model 164 : Sending the passbook 113 RAMESH & CO. Jabalpur th 15 Dec., 2001 The 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 2001 R.K Jain BCom Premchand Shop, The Agent, Cochin Bank, Kochi – 682 003 Sir, Sub : Overdraft The Deepavali festival is fast

approaching and I am required to stock enough textiles for the seasonal sales. Our suppliers are unable to give us loan for Rs. 25,00000 at present In these circumstances I will be grateful to you if you allow us an overdraft for Rs. 25,000/- I will undertake to repay 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 Jain Model 166 : Sanction of overdraft COCHIN BANK Kochi th 11 Oct., 2002 Shri R.K Jain, Premchand Stop, Kochi. Dear Sir, Sub : Overdraft With reference to your application dated 22nd Sept. 2001, for an overdraft, it is informed by our Head 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 114 Our Head Office has also instructed us to obtain a

personal guarantee form a customer – who is having deposits more than Rs. 9,000/- with us The necessary forms are enclosed herewith. Yours sincerely Agent Model 167 : Letter regarding stocks & shares Gwalior, 22nd Sept. 2001 N.P Dubey, Mayor, The Agent, Johns Bank Gwalior Dear Sir, I come toknow through some reliable sources that the shares of M/s. Jain & Co have failed to attract 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.PDubey Model 168 : Asking a party to remit the amount Mathew Financials Ujjain nd 22 Sept. 2001 Mr. PN Choprs, West Street, Ujjain. Sir This is to inform you that your account has been overdrawn to the extent of Rs. 4500 due to the payment of Rs. 76200 to the LIC 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 to overdraw without prior arrangement. Yours

sincerely, For Mathew Financials Model 169 : Instruction to pay LIC premiums Bopal. nd 22 Sept. 2001 R.S Patel MA G.S College 115 The Agent, Lakshmi Bank Ltd. Dear Sir, I shall be very grateful to you, if you undertake to remit the annual premiums due to the Life Insurance Corporation of India every year. Charges incurred in this connection may please be debited to my account I assure you, that I shall keep sufficient funds. The details are given below: Policy No. LIC. LIC. LIC. 24537 245731 453752 Due date Amount th Rs. 23100 th Rs. 21700 th Rs. 19800 28 Dec. 28 Dec. 10 Dec. Thanking you. Yours faithfully R.S Patel Model 170 : Reply to a request Rajesh Bank Ltd. 123, Civil Lines Chennai rd 3 April, 2002 Mr. James, The Universal Stores, Chennai. Sir, Thank you for your letter dated the 1st April 2002 in which you have made enquires about the possibility 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 could discuss the matter in detail. Yours faithfully, For Rajesh Bank Ltd. Agent. 116 Model 171 : Circular of a lost draft MODERN BANK LTD. H.O 16, Park street, Kolkata – 1 th 9 April, 2002 The Agents, All Branches Dear Sir Ref. Bank Draft DF 4798 for Rs 2,23500 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 the aforesaid draft, if presented, because we have ordered to issue a duplicate draft to the applicant. The order 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 117 Chapter XVIII AGENCY CORRESPONDENCE In commerce and trade, the middlemen play an important part. Through the help of such middlemen, sells can be stimulated. Manufactures and merchants dealing with their customers through advertisement may not have a personal touch with the customers. In order to stimulate sales business abroad or in far off places, it becomes necessary to seek the help of agents, because it is not possible for a merchant to open branches at every place. Instead, an agent can be appointed. Of course, branches are often luxuries and expensive and consume a good amount of revenue. For example, insurance companies appoint agent with whose help the work is done The following are some of the agencies: 1. Commission agent 2. Broker 3. Commercial traveler 4. Local agent Commission agent He is an agent, who buys or sells on behalf of his principal. He tries to dispose of gods

at base possible 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 possible rates and terms and receives a commission at fixed rate. Commercial traveler Commercial 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 makes tours in his area He gets a salary and allowances. If he does his work of more than one firm, he gets a commission on the basis of orders secured by him. They try to collect orders and send them to the principal for execution He must posses samples of goods to demonstrate. He approaches the buyers with detailers information of a product He will have an order book containing printed order forms. By using carbons, he takes our orders in triplicate He also takes the signature of the buyer, on the order form itself. The

original order is sent to the principal, the second copy 9carbon) is sent to the buyer and the third one he keeps in the order books. Local Agents He represents one or more firms for a particular area or district. In his area, he approaches the buyer and tries to secure orders. After securing orders, the order is sent to the firm for whom he obtained the demand After taking the order, the buyer and the seller come to direct dealing. If any dispute arises, the local agent has to render his services All the expenses met by the agents by way of dealings in the interest of firm, plus a commission to the agent for his services on the basis of sales introduced by him are paid by the principal. Establishing an agency Care must be taken while appointing an d terminating an agent. In the course of agency period many problems arise, such as delay in dispatch of goods, agent’s lack of interest in pushing sales delay in payments 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. In appointing agencies the principal must be efficient and has to see many points. First, let us discuss the application 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. 118 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 of area. He will possess more knowledge than the principal, in respect of his own area, because of the close contact with the customers. The principal should supports his activities by advertisement, supplying information as soon as a change takes place in his products etc. the agent’s letters, suggestions, etc should be given due respect and importance Care should be taken that a non-cooperative nature does not arise between an agent and the 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. 2001 The Toilets & Co., Agra 282 005 Dear Sirs, We are confident that, nowdays, there is a high demand for the toilet soaps of best quality. As we have knowledge of local conditions and have long connections with the dealers of toilet items, we offer to sell your product in this area. We also import toilet articles from foreign countries We have our own showrooms in the heart of the city Our stall in the exhibition organized by the Kolkatta Corporation last year, was well appreciated. We have five branches in the city. 119 We look forward to your terms and conditions for an agency. We give two

references An early reply is solicited. M/s. Madan Stores, Beach road, Kolkatta – 1 M/s. Jain & Company, Kolkatta – 10 Yours sincerely For Ram & Co. Model 173 : Offer of an agency JOHN AND HARI (Milk Products) Palace Road, Allahabad 20th Sept. 2001 The Manager General Agencies Mysore Dear Sir, We feel that in your area there is a great demand for milk product. If you prefer to represent our firm, 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 in introducing them in your area. We can give 15% commission on net sales and we shall pay you all the expenses met by you, on behalf of our firm. We shall send the detailed conditions to you on hearing from you Thanking you Yours sincerely for JOHN & HARI Model 174 : Decision in appoint an agency MORTON’S LTD. (Stationary Dealers) West Street, Allahabad th 20 Sept. 2001 The Singer & Co. Mumbai Dear Sir We thank you very much for

your letter of 10th Sept. 2004 and appreciate the confidence you have shown in your letter. We think that we can try with cheaper models in order to test the market. At first let us have a trial period of three months. If we find a suitable market for the products, we shall enter into an agreement on usual terms and conditions stated in our letter of 10th September, 2004 Awaiting your further suggestions. Yours sincerely, 120 For Morton’s Ltd. Model 175: Agency offered BANARJEE & SONS (Dealers in Machineries) Mandir Street, Kolkatta-1 th 20 Sept. 2004 The United Machinery Centre, Agra, Dear Sirs, With reference to the advertisement in The Indian Express of 12th Sept. 2004, we would like to offer our 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 as similar products, we are sure that your products can be exported to Australia. We agree to the terms and conditions

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. th 20 Sept, 2004 M/s Mathew & Sons, Mumbai – 400 015 Dear Sir, Now it is difficult to sell your product in this area, of course, the quality and durability of your product are far better than similar products. Our customers prefer to purchase your product, but complain about 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. If possible, please try to reduce the face value of your present goods. Pleas consider this seriously and come to as early decision. Thanking you Your sincerely For Rose Brothers. Model 177 : Principle’s reply MAHESH COMPANY Malad (West) Mumbai – 400 095 121 29th May, 2004 M/s. Sunder and Sons Ltd Chrompet, Chennai – 600 044 Dear Sirs,

Agency We thank you for your letter of 10th May and after careful consideration of the contents, we are favourably 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 you are willing to give us an undertaking to sell the papers, atleast worth Rs. 5 lakhs per months, we will allow you 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 he prepared to cooperate with us. A copy of the agency agreement will be sent to you on receipt of your favourable reply Thanking you Yours sincerely Model 178 : Letter asking for agency SUNDER AND SONS LTD. Chrompet, Chennai – 600 044 10th May 2004 M/s. Mahesh and Company, Malad (West) Mumbai – 400 095 Dear Sirs, We have recently read with interest your advertisement in the Hindu of 8th May offering the agency of 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 kinds of papers We are the premier suppliers of papers to all the sellers in this area. It is also understood that the 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 the general terms and conditions upon which you would be willing to negotiate with us. We hope to give you a minimum business worth Rs. 5 lakhs We have already had business relations with (1) M/s. Mohanlal and Sons of Chennai – 600 005 and M/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 sincerely Model 179 : Information from a principal RAMESH BROTHERS & COMPANY Rama Street 122 Calcutta – 1 th 20 Sept. 2004 M/s Patel & Sons Church Road, Mumbai. 400 050 Dear Sirs, We

regret to inform you that in the last two months, your sales show a sharp decrease. We do not know 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 help if 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 principal Tel. – 536 Gram : Mathew MATHEW & SONS (Dealers in Imported Machines) West Street, Calicut, th 20 Sept., 2004 Ms/. Johnson & Johnson Palace Road, Agra Dear Sirs, We would like to bring to your attention the fact that Calicut has a good market for printing machineries. Your representative, Mr. RM 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 situated very 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 basis of a commission of 10% in sales proceeds. We would like to hear from you regarding the terms and conditions of the agency, if you prefer our services. References are also given for your enquiry. Thanking you 1. Mr KP George, Mg. Director John & Sons, Callicut 2. The Indian Foods Ltd Calicut. 123 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, th 30 Sept. 2004 M/s. Mathew & sons, West Street, Calicut Dear Sir, With reference to your letter of 20th Sept., 2004 we are glad to offer you the

agency of our printing machines We know you creditworthiness and reputations in the place. Therefore, we lay down the following 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 7000 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 Your travelling expenses for this purpose will be borne by us. Thanking you Yours sincerely For Johnson & Mathew Model 182 : Claim on

the forwarding agent for the loss JOHN AND HARRY (Stationary dealers) Palace Road, Allahabad th 20 Sept. 2004 The Manager General Agencies, Mysore. Dear Sir, 124 We are greatly surprised to find that the consignment you sent to us contains only one gross of washing soaps. Please refer our order dated 10th Sept, wehre we needed 2 gross of washing soaps One gross is found missing. Your delivery note also shows 2 gross Will you please make necessary enquiries to find 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. th 15 Oct. 2004 M/s. Johnson & Johnson Palace 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 30th Sept, Despite the fact, we have heard nothing from you. the valuable customers are returning

daily disappointed If you had sent those printing machines through passenger train, it should have reached as within a fortnight from the dispatch date. Some of our customer are at the edge of cancelling the order booked with us. It becomes very difficult for us to give satisfactory reply to all the customers. Therefore, it is requested that the machines may be dispatched as soon as you receive our orders. Unreasonable delay in dispatch will put us in loss of business Yours sincerely, For Mathew & Sons Model 184 : Favourable reply to the agency CROMPTON BOOK AGENCIES Church Road, London E.C 2 15th Oct. 2001 M/s. Abdul Kasim & Sons, P.B No 2314 Mumbai. Dear Sirs, Thank you for your letter of 20th Sept. 2004 and we have great pleasure in writing the terms and conditions 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 125 4. All consignments will be supplied at FOB 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 as and when we hear from you. Your truly For Crompton Book Agencies . Model 185 : Letter offering agency FOOD SPECIALTIES LTD. M.G Road, Kanpur. th 10 May 2004 M/s. Johnson & Brothers Trunk Road Jabalpur Dear Sirs, The growing demand of our products has convinced us that we have a good market for our products in your locality. We did not appoint any agent to represent us in your area So we now feel the necessity of a local agent for our products and, as such, shall be glad

to know if you are willing to act as our local agent in your District of Jabalpur. We believe that you will find no difficulty in introducing our products in your district because of their good quality and growing demand experienced so far. We are ready 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 hesitate to honour your valuable suggestions in this respect for a lasting success in business. We trust that it will not be inconvenient for your to undertake our agency. We shall be glad to receive an early reply We shall be happy to send you the formal agreement as soon as we hear from you. Thanking you Yours sincerely For Food Specialties Ltd. (Marketing Manager) Model 186 : Letter offering Agency BABY BICYCLES MANUFACTURERS Mumbai. th 20 August 2003 M/s. Mortin & Sons Trunk Road, Bhopal Dear Sirs, 126 We hope that you knows our name as bicycle manufacturers. We have

no local agent on your area to represent us. We learn from one of our trusted friends that you deal to bicycles and you have good trade 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 active agent to introduce them properly to your local buyers. We have taken utmost care to make our bicycles suitable for your locality both from the points of durability and price. The prices of our bicycles have been fixed 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 dearer ones. To overcome your initial difficulties in introducing our products, we are willing to allow you, as sole agents, a commission of 20% on net sales. It is our firm belief that the connection we propose to establish by this letter would prove mutually beneficial and we trust that you are

ready to co-operate with us in our endeavour. Hope to hear from you soon Thanking you Yours sincerely, For Baby Bicycles Manufacturers (Marketing Manager) Model 187 : Accepting Agency in reply to an offer Mortin and sons Trunk Road, Bhopal (M.P) st 1 Sept. 2004 M/s. Baby Bicycle manufacturers Mumbai 400043 Dear Sirs, We thank you for your letter of the 20th August, offering us the agency of your products in our locality 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 our endeavour to show a better performance which will justify the establishment of an agency here. But in order to secure success, you should take utmost care to send quality goods at competitive prices. We are ready to accept your offer on the terms stated in your letter. We shall be glad to receive the formal agreement form as early as possible Thanking you Yours sincerely, For Mortin & sons. Model 188 : Refusing an Agency

offered PETERSON & BROTHERS Town Hall Road, Agra. th 12 Oct. 2004 M/s. Debey Brothers Ltd Trunk Road, Kanpur Dear Sirs, 127 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. 2004 The Manager Central Stores Madurai Dear Sir, We have

the pleasure in offering our services as agent for selling your plastic products you manufacture. We suggest that our knowledge of the local conditions and long standing reputations in agency 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 For West End Style Ltd. Model 190: Letter Offering Agency SURESH CHAND & COMPANY Shopping Complex Agra. th 27 September, 2004 M/s. Chatterji & Sons Kolkata. Dear Sir, Thank you for your letter of 20th September offering your agency for our products in your area. We are impressed at the possibilities of wide market for our products. As such we have decided to appoint you as our agent We accept your terms and conditions with regard to commission and method of settlement. But we request 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 128 For Suresh Chand & Company Model 191 : Agent’s report RAJESH TRADERS Brook Land Kanpur th 20 August 2004 The 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 of them are in the habit of taking stimulant drinks frequently in the day time. Most of the people here are poor At present, they are habituated to drinking tea. Coffee is costlier than tea As such, a cheaper substitute will have a warm welcome Your product-coffee is unknown in this area. However, the preference 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 this area Our suggestions, if accepted, will automatically boost the sales of coffee within a year. We earnestly await for your prompt reply. Thanking you Yours sincerely For Rajesh Traders. Model 192 : Offer for agency ABDUL KASIM SONS (Publishers of books) P.B No 3214 Newton, Mumbai 29th Sept. 2004 The Manager Crompton Book Agencies London E.C 2 Dear Sir, Our friend Mr. James, Sales Manager of M/s Petersons Ltd, London, informed us that you are in need of a reliable firm in Bombay to work as an agent for your valuable publications. Therefore, we take pleasure in offering our services to you. 129 We are doing extensive business in selling books. We

are well known in India as importers of Technical Books from many countries. We have our branches in all important cities in India We find that there 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 let us 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 further references. Yours sincerely, For Abdul Kasim Sons. Model 193 : Enquiry of low sales NAIDU & COMPANY Mahatma Gandhi Road, Kolkata st 21 September, 2004 M/s. Arun & Co, Agra Dear Sirs, We noticed with regret that your sales show a sharp decrease for the last two months. Our products can be sold our easily in the market. We are receiving a good number of orders from you neighboring areas You did not mention anything about the fall in sales in your reports. Unless you write to us, how could 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 & Company Model 194 : Respecting agent’s suggestions FRANCIS KEEN LTD. Mahatma Gandhi Road, Agra. th 20 Sept. 2004 The Tarun Electricals, Jawahar Chowk Bhopal Dear Sirs, Thank you for your letter of 15th Sept. 2004 Please accept our congratulations for your excellent work done in the month of August, 2004 We feel glad of your suggestions of printing catalogues and price-list in Hindi. Accordingly we have ordered to print the same in Hindi and expect to get them within a week. You may receive them at the end of this month I have every reason to believe that this cooperation will further achieve more and more sales in future. Yours sincerely For Francis Keen Ltd. Model 195 : Letter introducing representative 130 WESTEND STYLE LTD. Car Park Area, Chennai – 600022 18th April, 2004 The Manageress,

Central Stores, Madurai. Dear Madam, We wish to inform you that we have recently appointed Mr. James as Sales Representative for you area in succession to Mr. KT 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 you to grant him an interview. He has rich experience to his credit and will be able to give you valuable advice concerning 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 with him directly. We hope that his appointment be to our mutual advantage. Thanking you Yours faithfully, For West End Style Ltd. (Manager) 131 Chapter XIX CORRESPONDING WITH THE GOVERNMENT Business 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 and regulations 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 (DO) letters 4. Orders, 5. Endorsements 6. Resolutions 7. Reminders etc Memorandum is popularly known as memo. Memoranda or memos are used for internal communication between executives and sub-ordinates or between officers of the same level. Office Notes are used for horizontal communications. They are exchanged between departments or between officers of almost equal ranks, seeking or asking for suggestions or giving information on a certain matter. The format is that of a memo 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, imposing restrictions etc. Demi-official (DO) letters

are those which are generally written by a Government official to another Government official at a personal level. Such DO letters are used by one official when it is desired that the matter should receive the personal attention of the officer when it is desired that the manner should receive the personal attention of the officer concerned. When action has been delayed or official 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 Government or 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 enquiry and are otherwise engaging the attention of the public. They are issued by the Government and not by an individual Endorsement, Sometimes a letter or document is transmitted or forwarded by oen office to another

office or person for information, report or necessary action. In such cases, it is not necessary to write a letter to accompany the original letter or document Instead, an endorsement alone has to be put down at the end of the letter to be forwarded. The letter may be forwarded either the letter in the original or 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 in particular but are meant for information to the public. They are written in the third person Reminder letters 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 that takes place between businessman and Government departments. Businessmen departments correspondence is not in our preview. Model 196 : Regarding enquiry of a

money order R.KShah 1264, bazaar Street, Nagercoil – 629002 th 11 Dec. 2001 132 The Post Master Nagercoil – 629001 Sir, Sub: M.O for Rs 12000 sent vide your receipt No 35469 of 20th November, 2001 It is hereby informed that I sent a money order for Rs. 12000 to Mr KL 1256, Civil Line, Madurai, on 20th November, 2001 vide your receipt No. 35469 But it is surprising to note that the payee has not yet received the same. I, therefore, request you to enquire and inform the results Thanking you Yours faithfully R.K Shah Model 197 : Non-Delivery of telegram R.M Naidu 128 Madurai Road, Pollachi 8th Dec. 2001 The Post Master, Coinbatore. Dear Sir, I sent a telegram to Mr. PM Nadar, Palace Hotel, Madurai on 5th Dec 2001 But it is surprising to note that the addressee did not receive the above said telegram, which has put me into much inconvenience. The telegram was properly addressed and was an express one. Please enquire and let me know of it. Thanking you Yours faithfully R.M Naidu

Model 198 : Reply to a complaint No. 147/Tel/Com The Post Master, Coimbatore, R.M Naidu 128, Madurai Road, 15th Decembr. Sub.: Non Delivery of telegram Sir, Your complaint dated 8th Dec. 2001, has been forwarded to the Circle Office for further action A fortnight time is required to get the enquiry reports. Yours faithfully Post Master 133 Model 199 : Complaint to the Railway Department 123, Mount Road, Coimbatore, 9th Dec. 2001 The 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 the parcels very carefully and booked them on 30th Nov. 2001, vide R/R No 453 The packages were not heavy for carrying even by an ordinary man. But it is surprising to note that two of the parcels were broken, when they 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 to arrange for payment of compensation for the damage caused during transit. Thanking you. Your truly M.S Nadar Model 200 : Letter to Income Tax Authority seeking permission to remit taxes in installments 1236, Civil Line Coimbatore. 6th Dec. 2001 The 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 1500/- and a sum or Rs 1,000/remains to be remitted As I have already intimated to you, three our of the five to houses were gutted in fire last month. No rent is received and as such I request you to permit the to remit the balance Rs 1,000/- in four installments. Thanking you Yours faithfully R.K Naidu Model 201 : Explain from income tax payment 1254, Brooke Bond Layout, Madurai 5th January, 2002 The Income Tax Officer, Madurai. Sir, We have received your Demand Notice No. 454 of 1st January,

2002 to remit Rs 2,000/- as the balance of assessment for the financial year April to March. During this assessment year, my income fell below the minimum assessable amount. One of your clerks has already seen the books of account I presume that this notice might have been sent due to oversight. 134 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 the balance 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.PShaw Model 202 : Permission to open a stall in the exhibition P.N Dubey Artist 1234, Triplicane Chennai th 9 Dec., 2001 The Mayor, Corporation of Chennai Sir, 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 arts and

industrial exhibits. Since I am an artist I would like to open a stall, in the exhibition I need a small space of 16’ x 16’ I am willing to remit the rent in advance as soon as I hear from you. Yours faithfully P.N Dubey Model 203 : Letter regarding income tax assessment RAMLAL AND BROTHERS P.B No 487 Nagercoil – 629 001 10th May, 2002 The Income Tax Officer Nagercoil – 629 001 Sub. : Notice of Demand of 1st May We have received your notice of demand dated 1st May, 2002, asking us to pay Rs. 9,500 for the year 2001-2002 on account of income tax on our firm. We regret to say that you have resorted to this action without giving us an opportunity of being heard. In this connection we would like to inform you that the said assessment might have been due to oversight because our income during the period has been below the assessable minimum amount. However, it is clear from the enclosed duplicate copy of our income tax returns already filed. Please call us for our books of account

for scrutiny and pass orders for the total exemption from the tax. Thank you. Yours faithfully 135 Model 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 Transit We are sorry to inform you that four cases of ready made garments forming part of the consignment from M/s Ramlal & Sons, Mumbai to us and covered by your R/R “No. 4762 were found damaged in transit The cases showed clear signs of pilferage and this fact was brought to the notice of the delivery clerk at the time of taking delivery by us. We are now enclosing the full particular of the damage. The damages comes to Rs 2,500 You are requested to accept our claim and settle the matter at the earliest. Than you Yours faithfully For Sakthi Traders Model 205 : Complaint to Post Master about non delivery of Registered Parcel STUDENTS BOOK CORNER Navy Road, Visag – 530 014 10th June, 2002 The Post

Master Visag – 530 014 Sir, Sub: Non-deliver of Registered Parcel No. 472 We 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 books worth Rs 800 It was properly packed and scaled. We are surprised to know from Mr Udith Kumar that the said 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 said parcel and arrange its delivery to the addressee at an early date under intimation to us. Than you. Yours faithfully. 136 Chapter XX DRAFTING OF REPORTS “A report is a communication from someone who has some information to someone who wants to use that information.” It is basic management tool used in decision-making In a one-man business, in earlier periods, the proprietors himself took decisions on the spot. In those

times, producers or salesman went our, met people and tried to sell their products. But now the times have changed Mass production is followed by mass distribution campaign through a study and awareness of market conditions, competition, consumers, taste and preferences. Productionoriented stage has been replaced by consumers-oriented stage, in which consumers have been given utmost importance. Production of articles is mostly governed by their taste, likings, demand etc The expantion of market and severe competition, have necessitated the study of markets. Large scale organizations like the MNCs are engaged in multifarious activities, which are handled by different departments of the organizations. The top executives have to take decisions on the basis 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 or without 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 or refers to the related records and studies them carefully. Then, he prepares a report on the subject given by the principal Take an example of the Report of a Tournament in Hockey. Suppose, we are editors of a certain Daily and want to publish it for the public. We can depute someone to that place, where the tournament is going on The deputed man goes to the place and carefully watches the progress of the mathc from the beginning to the end. He also tries to collect the information, such as, between whom the play 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 the report. Those who could not witness the match, can have a clear

idea of the match and its proceedings y going 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. Conclusion There is an important thing to be remembered by the students. A report is prepared for someone who is in need of it Therefore, before writing a report, think well. Your report must be find regarding facts found out 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 annexure form, and enclose it with a forwarding letter. Let us discuss the parts of a report briefly 1. Appointment of a reporter A reporter is appointed orally or by means of a letter, and he is instructed about the subject-matter, on which

a report is to be prepared. The time for the submission of the completed report also will be given 2. Fact finding The work depends upon the nature of the event about which the report is to be prepared. The work may include visiting of the sports or places, consultation with some people, correspondence, cross examination of persons concerned, holding of meeting etc. After collecting the materials, the reporter starts preparing the drafts. He tries to find out the facts or the real thing by experimentations. The facts of the finding are written serially 1,2,3 and so on to give a clear picture 3. Suggestions or recommendations When the reporter is asked about his own suggestions or recommendations, he gives his own views. If his suggestions are not asked, it may not be included in the report. In certain cases the reporter is free to add his own views. 137 4. Conclusion The concluding part of a report contains the merit of the fact finding or the general view of the matters

concerned. If anything extra is to be mentioned along with the report, the reporter mentions it in this part of the report. Thus a report takes its shape. Commercial Traveller’s or Agent’s Report In case of commercial travellers or agents, they have to send their reports of the business to the principal periodically. 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 Report There may be some reports, which cannot be prepared by individuals. In such cases, a committee is appointed in order to make out a report. The information of a committee facilitates the work to be done more effectively, efficiently and

speedily. An individual may not be an expert in all the fields. A committee is appointed comprising of a number of persons Even the committee may have sub-committees. The sub-committee works as per the instructions of the main committee and gives report to the main committee. The members of the committee and gives report to the main committee. The members of the committee discuss the matters collected by them by holding meeting and prepare the report. Finally the Chairman or Secretary will put the signature on the report In some cases all the members of a committee will put their signature. Press Report In our day to day life, we come across many repots in the newspapers. The annual report of the general meeting of a Public Limited Company is generally published. This type of report is in the nature of an essay The aim of such a report is to apprise the public of the activities of the Company. Market Reports The market report may either be a daily or a weekly one or may be for a longer

period. In the Dailies and other magazines, we can come across reports relating to market conditions, price position, etc. on various commodities 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 time to time The reporter much pain to collect the relevant data from various sources and then prepares the reports. In order to make the report a short one, technical vocabulary is used. The market reports are useful to buyers as well as sellers, manufacturers, traders, speculators, etc. because market reports indicate the trends of market 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 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, Organised Market etc., are advised to take advantage of such market reports. Business repots are of the following types: 1. Periodic reports (routine reports) 138 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. 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 139 Model 206 : Below are given models of reports PULSES STOCK CURBS New Delhi, 10th July The Food and Suppliers Department has decided to withdraw the permission granted to the wholesale dealers to stock more than 500 quintals of pu8lses. The order comes into effect from 15th July As as result of this step, huge quantities of pulses are likely to be available in

the Delhi Market. The retailers are also warned to follow the principles It is also directed that the wholesalers can dispose of the excess quantity to the retailers and not to other wholesalers. Model 207 : ELECTRONIC APPLIANCES LTD. Aruppukotta, 13th Dec. 2001 The Director Sirs, I am enclosing a report submitted by the committee appointed in connection with the question of extension of our factory. Yours sincerely, Chairman Secretary. Encl: as above Report of the Committee Appointed by the Resolution of the Board of Directors on the question of extension of our Factory The committee is consisted of 3 members, viz., Messrs, RS Raju, PN Gopal and TR 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 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 committee members are invited at the next Board of Directors Meeting scheduled to be held on 20th Dec. they will be glad to furnish any further information. Secretary 140 Model 208: 15th Dec. 2001 M/s. JKain & Company Chartered Accountants Civil Lines, Mumbai (T.N) Audit Report We 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 Accountant Model 209 : Commercial Traveller’s Report Camp. : Room No 45 Kumar Hotel, Visag. th 13 June 2002 From : Nikhil Sunder, Area Sales Manager To. Mr. Udith Kumar Regional Sales Executive Sub. : Report on sales : Month ending 31st May, 2001 Sir, Places Visited : Complete area of Visag and Rajahumundry Collections Made : Visag : Collection Made : Visag: Amount (Rs.) Cash/cheque 15,700 Cash 14,000 Cheque 3. M/s Janaki Stores 18,000 Cash 4. M/s Ganesh 13,500 Cheque 5. M/s Ajay Traders 20,000 Cheque 1. M/s GR Sons Ltd 2. M/s Krishna Centre. Shopping 141 Rahamundary: Orders booked : Visag Rajamundry: 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 1. M/s Krishna Centre Shopping for 65,000 2. M/sJanaki Stores for 50,000 3. M/s Ajay Traders for 47,500 4. M/s Rana

& Sons for 20,000 5. M/sPrakash & Sons for 35,000 1. M/s Hukum Chand & Sons for 60,000 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 50,000 Suggestions I 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 us bulk 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 have complained that our goods have not found market owing to defective packing and the subsequent damage caused during transit. They want to know whether they can get fresh goods in exchange of those damaged goods. I wait for your instructions. I find that the demand for our

goods has been increasing very fast. The present supplies of our goods are not sufficient to meet the increasing demand. A few more stockiest of good business standing may be appointed in Visag and Rahahmundry. Next Programme Tomorrow morning I leave for Hyderabad. Reply to this letter may please be sent to Room No 10, sunder Mansion, Hyderabad – 10 NB : 5 Cheques are enclosed Cash sent by crossed Demand draft, as usual. Yours faithfully 142 Model : 210 Report on the need for computerization Allied Sales Company Ltd. (H.O Mumbai) P.B No 230 Nagercoil. 629 001 th 6 June, 2002 The Managing Director Mumbai. Sir, Sub : Urgent need for computerizing the Accounts Department As you are well aware that our branch has achieved tremendous growth during the last two years. The sales volume, number of customers, turnover, the staff of this branch etc., have doubled The auditors report 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 keep up-to-date records of purchases, sales, salary bills, remittances of amount, receipt of cash etc. Apart from Head Office, we have three branches including this one The other two branches were computerized last year. It is a fact that this branch is doing more business than the other two. Although the Head Office has appointed additional hands in the Accounts Department, the staff are unable to cope with the increasing work load. The staff in the department continue to work till late hours, yet fail to keep up the work up-to-date. The only way to overcome this situation is to computerize the Accounts Department. When it is done, it will lead to a reduction of staff strength and at the same time we can keep up the records of every transactions at our finger tips with the help of computer. In the long run it will be economical apart from modernization The proposal may please be given

top-priority. Thank you. Yours truly Model 211 : Opening of Branch Brooke Bond Layout, Coimbatore – 641009 rd 3 March 2002 The Director Gandia Press Ltd. Madurai 625 002 Sirs, Ref. Opening of a branch in Coimbatore In accordance with the resolution dated 18th December, 2001. I take pleasure in submitting a report upon the 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 143 We have received repeated requests from customers of this area and surrounding areas to open branch office 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 in Coimbatore I visited several school institutions, local booksellers and markets. I had the clear

suggestions from many, and am in favour of opening a branch office in the city. The people wish to see the books directly 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 have contracted the owner of the building. Who is ready to spare it on a rent basis for a period of 5 years Mr MS Nadar, a retired superintendent of M/s Jyoti Press is willing to act as the manager for our firm. His salary 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 MS 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,

Sangaralingam Model 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 Shri R.C Jain Sales Representative 29, West Street Agra. 282 008 Dear 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 running of the establishment. We, therefore, entrust you to find out the cause of the decrease in sales and send your report to us with suitable suggestions and recommendations in order to arrest the present undesired trend. Thanking you. Yours faithfully For Chopra & Sons Enterprises (Sales Manager) 144 Model : 213 : Reply to the sales manager CHOPRA & SONS ENTERPRISES

(Dealers in Washing Soap) H.O Cantionment Kolkata – 1 29, West Street Agra. 20th Oct. 2001 Dear Sir, Ref.: Decline in the Sales of washing – soap Detailed report with suggestions In accordance with your letter No. Sales 71-72-47 dated the 10th Oct, I have undertaken a careful study of the general trend of our business. I contacted the local dealers and collected the shortcomings in respect of 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, 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 145 REPORT OF SUITABLE PREMISES When a principal writes to a particular man in order to find out suitable premises for the purpose of housing 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 report regarding the advantages and the other facilities. Model 214 : XYZ Co. (Dealers in Stationery Materials) 37, Raj Street, Agra 282 001 12th October, 2001 The Partners, Suresh Tradings, Chowk road, Lucknow – 226018 Dear Sirs, With reference to your instructions contained in your letter No. 845 dated the 1st of October, 2001 I have personally visited the place, where the building in situated. The following are the comments regarding the

suitability of the building: The building, bearing No. 41 is very specious and was occupied by the Government of India for the purpose of giving training to military personnel. The building has three large halls and twelve rooms with electrification and water – supply. The building is situated one kilometer from the Railway Station and half kilometer from the Bus Stand. All the rooms have enough ventilation Besides, the building is situated in the heart of the city. The rent will be Rs. 900 per month and if occupied by us, advance of Rs 2,000 should be paid I contacted the owner of the building and he is glad to let it our on rent, to us. His written consent is also enclosed 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 same immediately It will be better if you come

personally and see the suitability of the location. 146 Chapter XXI SECRETARIAL CORRESPONDENCE In our day-to-day life, we come across many commercial associations. In almost all the companies or firms or societies, there will be a person, called Secretary. The secretary, in a joint, stock company plays a vital role in order to attain a smooth running of the firm. The secretary is a responsible official, who is concerned with the general administration and management. In his day-to-day work, he has to face many jobs assigned to him He is the principal of other employees of the firm. He is wholly in charge of the co-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 and shareholders of the firm. Shareholders in the real sense, are the proprietors of the company He pays the highest courtesy and consideration to the shareholders. He has

to face and to deal with the requests of shareholders 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 such information the secretary has to write letters to the shareholdr4s Generally information is not conveyed individually, but passed to all simultaneously. The secretary also receives letters of complaint from the shareholders. In this case, the secretary has to deal with them tactfully and inform them that the company’s directors are taking such decisions in the best interest of the company. Generally, shareholders’ complaints may be of dividend or the market-price of shares He has to deal with it very nicely. If there is any complaint of an arbitrary nature, it will be placed before the directors for decision The Secretary and the Directors The

Secretary is the servant of the directors and he has to correspond to them. In many cases directors may be inexperienced or may not be acquainted with the affairs of the company, and in such cases the directors 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 and authority over the company The letters of the secretary to the directors and the shareholders are important. Usually the secretary meets the directors in the Directors’ Meetings periodically. Sometimes some of the Directors may be absent for the meetings. Then the secretary has to inform those directors regarding the proceedings of the meeting and the decision of the meetings. The directors may also inform the secretary to add certain matters in the agenda to be discussed in the meeting. And this should be included then or write to particular directors regarding its weak points.

In writing letters to the directors, secretary has to exercise 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. (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 147 Model 215 : Letter of Allotment Carbolic Company No Allot. Registered Office Carbolic House, Mumbai – 1. Shri / Shrimati . Dear Sir/Madam, With

reference to your application dated . for shares of Rs each in our Company. I am directed to inform you that shares of Rs Each are hereby allotted to 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 total Rs . 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 application fee in favour of the allotted . Shares Secretary/Accountant Office Stamp Model 217 : Notice of the board meeting RAJESH TRADING COMPANY Mansion Street, Brooke Bond Layout, Kochi. th 15 December. Shri R.N Bhasker, B.K Trust, Kochi Dear Sir, A meeting of the Board of Directors will be held on Monday the 25th of

December, 2001 at the Registered Office of the Company at 11.00 AM to decide the programmes for the exhibition at Trivandrum You are requested to attend the meeting. Yours sincerely 148 . (Secretary) Model 218 : Reply to complaint about the non-intimation of Company’s affairs Rajesh Trading Co. Mansion Street, Brooke Bond Layout, Kochi. 25th December, 2001 Mr. RN Wadia, 123, Civil Line Alleppy. Sir, Received your letter of 15th December, 2001. It is much regretted that all letters sent to your former address did not reach you. owing to the rush of work, the change of address has not been recorded in the register 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 meeting R.K Kumar Taj Hotel, Civil Line, Mumbai – 400018 25th December 2001 The Secretary, B.B Company Ltd Kolkata 700 051 Dear Sir, Due to

certain agent work, I have been touring this place and probably, I will be staying up to the 30th of this month. I have not yet received any information of the next meeting of the Board Therefore, I request you to intimate the date of next meeting at the above address. As I am likely to travel up to the end of January, 2002. I suggest that the date of the meeting may be fixed and I may be informed of it well in advance, say one month. The chairman may please be consulted about this and this matter may be included in the agents of the next meeting. Thanking you. Yours sincerely R.K Kapoor 149 Model : 220 : Reply to the suggestion letter of a director Kolkata – 700 062 th 27 December, 2002 Mr. RK Kumar Taj Hotel Civil Line Mumbai – 400 018 Dear Sir, In reply to your letter dated 25th December, 2001, I am directed to inform you that the next meeting of the Board of Directors of the company is scheduled to be held on Thursday, the 4th of January, 2002, at 2.00 PM Your suggestion

of informing the directors about the dates of meeting, in advance, was referred to the 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 Directors Printers of Mysore Ltd, Mission road, Bangalore. 27th February, 2002 Shri 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 this company in the place of Mr. PK 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 this company and you possess similar experiences. I, therefore, take the liberty to enclose the Memorandum of Association and Articles of Association together with the audit report of this year. If you need further information, please write to me or ring up 3756. Yours sincerely (Secretary) Model 222 : Enquiry about dividend B.K CHELLAM ENTERPRISES Chellam

Street, Devanagar th 27 Feburary, 2002 Mr. PN Sethi Mansion Street, Kolkata. 150 Sir, I have your letter of 15th Feb. enquiring about the prospects of the company, and the dividend to be declared The future of the company can be seen from the Directors Report and the Balance Sheet of the company. 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 the next meeting of the Board of Directors i.e on 7th March My position does not permit me to disclose more information Yours faithfully . (Secretary) Model 223 : A letter informing the auditor of his appointment B.K INDUSTRIES LIMITED K.B Town, Kochi th 24 March, 2002 Messrs John & Johny, Chartered Accountants Kochi – 2 Dear Sir, I am directed by the Board to inform you that you have been appointed as auditors of this company up 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 2002 Mr. Nikhil Sunder Vadapalani, Chennai Dear Sir, I have enclosed herewith the Agenda of the Board meeting to be held on 10th June, 2002. I am directed to draw your kind attention to all the items of the Agenda. The first item of the Agenda relates to the proposal to close down our factory at Bangalore. Looking at the reports of the past few years, we observe that the factory has been running at such a loss that it hardly justifies its existence. The accumulated 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 in Chennai. 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 experience. long Thank you Yours sincerely 151 Model 225 : Letter to a Director informing the first meeting of the Board. KUMAR TEXTILES LTD. Kaveri Mahal Bangalore – 560 001 3rd April, 2002 Mr. Premchand, I.P Nagar Bangalore – 560 002 Dear 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 am 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 business Please attend the meeting Thank you Yours sincerely Model 226 : Letter inviting a share holder to join the Board of Directors KRISHNA AND COMPANY T. Nagar Chennai nd 2 June, 2002 Mr. Premchand, T Nagar, Chennai Dear Sir, I am directed by the Chairman to ascertain your willingness to accept the position of a Director of

this Company. Mr. john has been a Director of this Company since 1990 He is resigning from the Board on medical grounds. His resignation takes effects from 15th June As a shareholders of many years standing, you have an indepth knowledge of the business of the Company As per the Companies Act, any casual vacancy in the Board can be filled up by the Board of Directors at a meeting of the Board. The Board of Directors of this Company has decided to appoint you as a Director of the Company. I am enclosing a copy 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 sincerely 152 Encl: as above Model 227 : Letter of forfeiture of share CHAND AND SONS M.G Road, Cochin 652 010 1st June 2002 Mr. Premlal 178/240 R.P Nagar Alleppy – 688 012 Dear Sir, I regret to inform you that you have failed to comply with

the notice sent to you on 1st May 2002 in which I stated that your shares were liable to be forfeited in case the call made in your shares was not paid on or before the date specified in my last letter. I am directed to inform you that in the meeting held on 20th May, the 50 equity shares which were registered on your name, have been fully forfeited by the resolution of the Board of Directors. This is for your kind information Yours faithfully Model 228 : Second call of share capital B.K INDUSTRIES LTD K.B Town, Cochin th 26 March, 2002 Sri P.K John, Shoe Co. Mart, Cochin. Dear Sir, Under instructions from the Board of Directors of the Company, we have to remind you that a sum of 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 of this company will remain open till 8.00 PM up to the 28th of this month Yours faithfully, (Secretary)

Model 229 : Letter of loss of share certificate Cantonment, Gwalior, th 28 March, 2002 The Secretary B.K Engineering Ltd 153 Bhopal. Dear Sir, May I inform you that I have lost the certificate for 200 preferences shares of your company allotted to 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 Sharma Model 230 : Application for registration B.K ENGINEERING COMPANY LTD Palace Road, Kochi 2 th 25 January, 2002 The Registrar of Companies Trivandrum. Sir, We intend to form a new company under the title of MESSRS RAMU PVT. LTD The proposed names of the Chairman, Directors and capital amount to be collected etc. are in the enclosed proforma The necessary fee is also sent herewith. Apart from this, the Memorandum of Association is also enclose for your decision on this matter Your faithfully . (Chairman) Encl : as above Model

231 : Circular inviting application for shares B.K CHELLARAM PVT LTD Netaji Subhash Roac, Kolkata th 26 March, 2002 The shareholders, Sir, With a view to raise funds for the extension of our factory, the Board of Directors have decided to issue 1,000 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) 154 Chapter XXII IMPORT TRADE CORRESPONDENCE Every country needs the help of other countries to meet the requirement of products, which are produced by it. What is produced in one country may not be produced in another. Moreover, no country in the world is 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 imports and spends several cross of rupees against goods. Thus the import trade of a country is an important branch 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 quotations A customer who wants imported goods, may have rare occasions to have enquiries and quotations of commodity 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 customer wants details regarding quality etc, in advance, he can obtain them by writing to the country. In the quotations, full information can be had Here also, if the purchase is on credit basis, the foreign seller will have 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 offer also 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 the instruction of the importer, shipped to the countries, where they have to be sent. After sending those

goods, all the documents such as invoice, bill of lading, insurance receipt etc., are forwarded to the purchaser by separate mail After getting the shipping documents, he is entitled to take the delivery of goods as soon as the ship in which the goods are sent arrives at the port. The purchaser also undergoes certain formalities before taking delivery of good clearance such as custom authority, unloading etc. The delivery order or the bill of lading, endorsed by the exporter is given to the port authorities with the signature of the importer, to relieve the goods. He has to clear all duties and other charges to relieve the goods. He has to comply with the formali8ties of clearance Then only he has the right to possess the goods. If the customers face difficulties in clearing the goods, all the work can be entrusted to the clearing agents, who in their turn clear the goods and charge a little amount for their work. Model 232 : Letter of enquiry RAJU PHOTOGRAPHIC MANUFACTURING CO.

Harison Road, Kolkata th 20 March, 2002 Messrs, Roin & Windson Ltd. London. Dear Sirs, Mr. Black of the Carbolic Company of India has recommended to me your firm as manufacturers of high grade photo films, enlarging machines, etc. Mr Black has also supplied me a copy of your latest catalogue and price lists meant for wholesale purchase. I would like to purchase one dozen photographic enlarging machines and one number of hearing machine as per prices quoted in your catalogue of November, 2001 on a trial basis. 155 I feel great pleasure to inform you that may firm is one of the largest importers of photographic goods in the 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 business during 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 th 10 April, 2002 Messrs, Halex Pvt. Ltd Palace Road, London E.C – 2 Sirs, Messrs, Raju Photographic Manufacturing Company of India would like to enter trade relations with us and they have given your name as a reference. We shall be obliged if you would give us in confidence, a report relaing to business reputation and creditworthiness 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, 2002 Messrs, Robinson & Windson Ltd. London. Dear Sir, In response to your letter of 10th April, 2002 regarding the financial status of Messrs Raju Photographic Manufacturing Company, we are glad to inform you that our business relations with them are satisfactory for the last five or six years. We have always found them

prompt in payment Therefore, we recommend that the firm is worth to be granted a credit for more than you have suggested. 156 Yours sincerely, For Halex Pvt. Ltd Model 235 : Asking for agency INDIAN BOOK SELLER Mansion Palace Mumbai – 1 30th June, 2002 The Technical Book Centre, Germany Sirs, We are interested in representing in this country for foreign technical books, particularly wireless and television books. We shall be glad to act as sole agent there on commission basis provided you are interested in marketing your books over here. We have much experience in the field, and we have been dealing with England and Japan for the last ten years. We find that there is a great demand for wireless, television and teleprint books We shall approach 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 of business along, with literatures and samples. Our references can be had

from the Book House, Germany and Brooke Bank Ltd of Germany. We shall be grateful for your early reply. Yours truly. For Indian Book Seller Model 236 : Letter of accepting agency ROBINSON & WINDSON London th 30 April, 2002 Messrs, Raju Photographic Manufacturing Co., Harison Road Kolkata. Dear Sirs, We are glad to receive your letter of 26th March 2002, and thank you for its contents, which we have noted 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 157 Please let us know whether the above said conditions are acceptable to you. AS soon as we hear from 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 th 9 January, 2002 The Indian Book Sellers, Mansion Palace Mumbai. Sirs, We are glad to receive your letter dated the 9th Dec. 2001, and consulted our partners We are all glad to extend the agency to your firm. The latest price list along with illustrated literature and free samples of books on wireless, teleprint methods, etc. (12 in numbers) is sent today by separate mail We shall grant you 20% commission on net sales. All the bills of purchase shall be remitted to us within one month 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 Model 238 : Intimation of goods arrival JOY TRADING COMPANY Lahore Street, Mumbai – 400 018 10th Jan. 2002 Messrs. John & Mathew Ltd Palace Road, Nagpur

Sirs, We have been informed by the local agents of Importing Association that the steamship “Indian Soil” is due in Mumbai on 15th January, 2002 and your demanded goods will be shipped in that steamship only. Please, therefore, be in touch with the Dailies, in which the information of the steamer can be had Yours sincerely For Joy Trading Co. 158 Chapter XXIII EXPORT TRADE CORRESPONDENCE From our country goods such as, raw material, textile materials, medicines, tea as well as other manufactured 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 through intermediary agents. Indian manufacturers may contact firms directly or through the intermediaries and try to 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 of the trade, the exporter proceeds to execute the order received. Clear instructions from the foreign importers 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 will be 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 can easily verify his goods form the lot. Along with the number, the address of the importer is also seen on the packages Since there are many shipping companies, the exporter may try to have quotations of freight charges 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. Then the 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 as they 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. 159 Model 239 : Letter placing order with local firm MUMBAI EXPORTS CO. LTD 478, T.N Street, Mumbai th 8 Dec. 2001 Messrs. Arun Enterprises Mumbai – 12 Dear Sir, As per the telephonic conversation we had with you today, we pace the following order to be executed on or 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 gross The order is placed as per your quotation dated the 6th Dec. Please pack carefully, as these are to be exported to Australia on the 14th of Dec. Our representative Mr Sharma will be visiting you in order to verify the working conditions of each item. Please give him all facilities If there are any problems, dial 4466 Thanking you Yours sincerely For Mumbai Exports Co. Ltd . Model 240 : Asking for agency WILSON & PARTNERS London th 9 Dec. 2001 Messrs, 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 was displaying goods. Our representative Mr. White who happened to visit your stall in the exhibition centre on 2nd November, 2001 has recommended that the quality of the cloth is really superb. So please send us by return of post the price list and illustrated catalogue of sarees and carpets.

Now there is a demand for carpet of Indian make First, we shall send order for carpets on a trial basis. If your terms and conditions are reasonable, we shall send more and more orders. Kindly let us know whether it is possible to execute the orders within a month from the date of the receipt of the order. We await an early reply Yours truly For Wilson & Partners 160 Model 241 : Sending goods RAJARAM ENTERPRISES (Cloth Dealers) Church Road, Agra – 282 002 25th Jan. 2002 Messrs. Wilson & Partners London Sirs, The bill of leding and insurance policy for the consignment of carpets are sent herewith. The ship SP101 left for London from Mumbai yesterday noon. The carpets have been specially manufactured to suit the London market We hope that you will make every effort to sell them early. Please credit the amount 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 above Model 242 : Letters to branch office RAJU EXPORT COMPANY Mount Road, Kochi -2 th 9 December, 2001 Messrs. 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 same have been distributed. Please send a dozen or two of motor cycles of 25 HP 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 the latest design and colours of various types. On a trial basis three transistor radios are being sent today by the RS Steamer and they may be kept for demonstration purposes. The literature is sent by separate Air Mail Post Thanking you Yours sincerely Fir Raju Export Co. 161 Model 243 : Explaining incomplete consignment SHEEPARD BELL LTD. Kolkata – 700 017 th 11

December, 2001 The 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 demand was for 300 radios. The company could not supply the full quota, because of some internal trouble, which affected 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 and request you to credit the balance at the bank as early as possible. Thanking you. Yours faithfully, For Sheppard Bell Ltd. . Encl : as above Model 244 : Complaint PARKINSON LTD. Mumbai – 400 018 11th December, 2001 Messrs. Strong & Aston Ltd Landon. Dear Sirs, Our London representative has written to me stating that you have complained about the goods sent to you in the last consignment. The goods had been backed and sent to you

strictly according to your instructions and specifications of order. if the goods do not tally with your order, you are at liberty to send them 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. 162 Chapter XXIV WRITING OF MINUTES The agenda of a meeting is written in the form of items to be discussed at a meeting, while minutes are the official records of business transacted at a meeting. The duty of noting minutes falls on the secretary of the firm or association or social body. The members of a joint stock company are called – its members or shareholders. By elections, a few members are selected in order to manage the business, and these elected or appointed members are Directors. 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 Meeting The most important meeting so far us the shareholders are concerned is the Annual General Meeting. This Annual General Meeting is held at the end of every accounting period. According to the Companies Act., every company must maintain books properly numbered and must record therein the minutes of the proceeding of every meeting of the company within w0 days. Every page must be signed with date The minutes must contain a fair and correct account of the proceedings. The Chairman 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 a précis model The Secretary, who writes the minutes in the book, must have good command over the language, in which he writes. If he is the master of the language, (in which he writes the minutes) he will be able to write briefly and precisely. Writing of minutes should not be delayed. As soon as the meeting is

over, 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 held on . In the Registered office of the Company No. Particulars : Details of minutes 1 2 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 3 163 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 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 auditors & accountant were approved. Future of the firm Approval of reports 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 & Co.) : On the motion of the Chairman Shri . seconded 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/- pa 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 note AGENDA for Board Meeting to be held at the Registered Office of the company on Saturday, the

31st of March . at 500 PM Present Mr. PK John (in the chair) Mr. MM Mathew Mr. ML Ganesh Mr. NR Dubey Directors Mr. BN Pandian In attendance Mr. RS Dass Item Nos. Particulars Chairman’s notes 1. To read and sign minutes of the Board Approved and signed 164 Meeting held on 1st March . 2. To submit list of Accounts for payment and sign cheque in full settlement for Rs. 2000 Accounts approved, cheque ordered to be signed 3. To submit transfers of shares num-bered from 401 to 410 and sign certificates in favour of transferees. Transfer approved new certificates No. 6001 to 6010 ordered to be signed and sealed. 4. Appointment of agents for the Japan Region The agreement to appoint Messrs. Harry & Company of Japan was produced and it was resolved and approved. 5. Next meeting To be held on 17th April at 2.00 PM (Chairman’s Initial) Model 247 : Minutes of the Board Meetng held at the Registered Office of the company on 31st March . at 5 P.M Present Mr. PK

John (in the chair) Mr. MM Mathew Mr. ML Ganesh Mr. NR Dubey Directors Mr. BN Pandian In attendance Mr. RS 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. 2,00000 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 200 PM Read, approved and signed S/d. PK John R.S Dass, 31st March. 165

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 Chairman Specimen 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 166 Chapter XXV LETTERS TO EDITORS AND COMPLAINTS TO PERSONNEL Letters to Editors We live in an age of democracy. Public opinions play an important part in the shaping of the policies 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 of Newspapers 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 is given to the public to express their views for or against the Government and thereby new papers or magazines play an important role. A letter to the editor is written on matters concerning the public or public interest on various current problems. It is through this column

that one can draw attention of the public and win sympathy for a particular issue that requires attention or action of the Government or some authorities. 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 Personnel Complaint letters are generally addressed to an individual or an officer of any department in order to put the trouble before them. In the letters of complaint, the full address is usually found The complaint letter should also carry the possible remedies apart from the complaints. It should be remembered that the complaint is a genuine one A few examples are given below: Model 248 : A sad Interview Sir, I write this to draw the attention of the authorities concerned to the sad affairs faced by me and many others in connection with an interview. An advertisement appeared in your newspapers on 9th Dec. 2001 calling application for the posts of Overseas (Civil Engg.) in the grade of Rs

2,500 – 25,4,000 I along with my friend applied for the post by remitting Rs 50/- as application fee Most of us have the prescribed qualifications. The probable number of such applicants may not be less than 40 from this area. On 27th January 2002, I got an interview call from the Personnel Officer of that firm asking me to appear for an interview on 2nd February. I went to 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 and enquired about the interview on the date fixed. But he regretted to inform us that the 167 said interview had been cancelled. The Personnel Officer who sent us the calls was absent We met the Senior Personnel Officer and informed him of our difficulties and sufferings. We were not allowed to meet the General Manager to represent our matter. The authorities had no courtesy even to hear our grievances. Some of

us received the cancellation letter of the interview only after we returned to our native places. 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 affected Model 249 : Complaint about worms in water supply Sir, I would like to bring to your notice a serious and dangerous matter which needs your immediate attention. For the last few days, tiny and hardly visible worms are found in the pipe water supplied on this area. The public is very deeply worried and there is considerable anxiety everywhere. A few residents of this area have represented the matter in person to the Municipal authorities. But no satisfactory relief has been effected Because of the supply of unpurified water, there is the danger of diseases spreading amongst the public. Therefore, I request you to take immediate steps to make arrangement to supply good water to prevent

danger to public life. Before putting the water into tap, it may be examined by the health department Madurai 21st Feb. 2002 Yours truly A Sufferer Model 250 : Complaint about a cleark of the Electricity Department A.S Nadar 146, Ramanathan Street, Nagercoil – 620 001 1st March 2002 The Accounts Officer, Electricity Department, Nagercoil – 629 001 Sir, Kindly permit me to bring to your notice the inconvenience experienced by the public on account of cash remittance for the electricity bills. On the 12th of the previous month, I went to your office particularly to the cash receiving section to remit the amount of my electricity bill amounting to Rs. 12040 The counter usually opens at 900 am and closes by 230 pm I went to the office at 8.30 am and at that time the cash section was not opened In common with others, I stood in the queue calmly. Almost all of us were office goes Our duty time is from 930 am 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 am Then he proceeded opening his almirahs and table drawers in search of the receipt books and pencils, and spend nearly 20 minutes. Many of us requested the clerk to accept the cash soon But he said, ”No If you have complaints go to the Resident Engineer. I am punctual in my duties” His duty starts by 900 but starts his official duties only by 930 am 168 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 with Rs 12200 against the actual amount of Rs. 12040 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 my statement is true. As such I suggest, you adopt good devices and means to ensure quick collection and provide facilities to the public. Your truly, A.S Nadar Model 251 :

Future of English Chennai th 10 March, 2002 Sirs, While many educationists are agreed that English must be the medium of higher education, a few hold the view that English is most useful to improve the efficiency of every worker. We should not consider English as a foreign language, because we have been handling the English language for many years. There are many Indians who have really mastered the language better than the English people themselves. Many South Indian leaders as well as the North Indians argue that English should be retained as the official language. The usefulness of the language is being realized in greater measure ant it is seen that the number of English medium schools is increasing. Majority of the parents seek admission for their children only in the institutions where English is the medium of instruction. By rejecting the study of English the present atmosphere will invite intellectual bankruptcy. English is not learnt by everyone without compulsion. English

must be the medium of instruction till a time comes when Hindi. Will become a powerful weapon of thought. There may be arguments in favour of and against this issue of language It will take some more years for all the people of India to embrace the Hindi language in the place of English as the medium of instruction. Of course Hindi is our National language. Chennai th 10 March, 2002 Yours truly A Citizen Model 252 : Complaint of electricity failures B.K Area, 12th March, 2002 To, The Superior, B.K Area, Sub-station Sir, Your kind attention is invited by the undersigned to the frequent failures of electricity. During the last one week we have experienced much trouble and inconvenience due to the failure of electricity. It is also seen that electricity fails more often at night than at day time when our children have to read and write. Some of the residents of this area have already approached you with the same matter. We regret to note no action has been taken from your end so far.

Last night also there was electricity failure for more than half an hour This is injustice to the students, who are having examinations at present. When the lights fail our children lose their interest in studies. We wonder whether there is none in your sub-station to look into the repairs of the sub-station This failure of electricity does not happen in the neighboring areas. 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 repair done in order to avoid further failure of current. 169 Yours faithfully (R.S Patel) For the resident of B.K Area Model 252 : An Unhealthy Practice Sir, The employment situation in the country is quite bad and many qualified people with engineering degree or MBA are paid a pittance. Adding insult to injury, many establishments, particularly some self-financing colleges, demand the original certificates of the employees and retain them as a bargain

against their leaving at short notice. A person is stuck up with an organisation due to his or her certificates not being available for presenting to another potential employer. I think it is immoral to hold the certificates of people against their 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 and it should be made a punishable offence to hold the certificates of employees. Certainly a Xerox copy should suffice any purpose Many Gulf countries, I am told, are taking the passports and other travel documents of employees which 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. Visag 13th June, 2002 Udith Kumar Narayanan Model 254 : Replace Soiled Notes Sir, Printing and issue of new one, two and five rupee notes were stopped several years ago with the result 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 are reportedly readily available to replace the old and soiled notes, no applicable headway has been achieved in the process. As this replacement process is restricted to Chennai only as of now, it would do a world of good to those in other places in the districts if SBI opens similar special counters limiting to some of their branches and issue coins in exchange of soiled notes to the convenience of all concerned and the end of circulation of soiled notes achieved quickly. Coimbatore July 10 “An interested” Model 225 : Regulate Mini Buses Sir, It is a welcome decision for having permitted private owners to operate mini buses on certain notes in Tamil Nadu. Indeed it help case the overcrowding in buses But, it has some drawbacks The

mini bus Operators mostly do not issue Rs. 150 tickets to the passengers They are issuing only Rs 2.00 tickets, which deprives the right of the passenger for short distance travel with minimum charges the authorities concerned should intervene in this matter and make them issue minimum charge tickets. 170 Moreover, in some mini buses, the tickets issued to the commuters do not have the names of the operators. Only the rate of the tickets is printed. It is needless to point out that this would definitely lead to corruption and neglect the passenger’s right to appeal at appropriate forums for redress of her/his grievance, if any after the journey. At both termini, the mini buses are parked for long hours, which hinders the traffic very much. Chennai 15th July, 2002 Nikhil Sunder Model 256 : Footboard Travel Sir, It is rare to see town buses in Nagercoil sans passengers on the footboard. Invariably, most of these passengers travel ticketless. Busses are managed by only a single

conductor even during peak hours and footboard travellers avoid him by changing from the footboard to the front at the rear. If the State Transport Corporation appoints two conductors for each bus at least during peak hours it can eliminate ticketless travel to a great extent. Nagercoil Sunder R. Model 257 : Uniform Sales Tax Sir, The Government is implementing several innovative schemes in the area of sales tax – the introduction of self assessment and abolition of check post – to mention a few. These schemes are intended to benefit traders The system is also being introduced to prevent evasion of tax, mainly by manufacturing units which want to sell their products at cheaper rates through dealers. Since all States have adopted the uniform sales tax system, the manufacturing units must be forced to deduct sales tax at the time of dispatch of goods and remit the amount to the respective States. Traders can thus be rescued from harassment at the hands of ST officials by way of raids

V.P Vinayagam Chennai th 20 June 2002 Model 258 : Wind Energy Sir, Among the renewable energy sources, wind is the oldest and most proven one. In our country there was a boom during 1994-95 and 1995-96 when 235MW capacity additions to wind energy installations took place. But subsequent years saw a steady decline. On the other hand, there has been a tremendous growth in wind energy in Germany, Spain, and Denmark. The high growth in Germany (which occupies top position 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 wind energy creates more stable market conditions compared to project bidding. Also guaranteed energy rates create 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 (500 MW) and Denmark (292 MW) in 1999 proves the global importance given to wind. Incidentally only 112 MW capacity wind installations took place in our country in 1999. It is time the Ministry of Non-conventional Energy Sources (MNES) in consultation with different State Governments evolved a sound policy with assured market for purchasing the wind energy produced. Sunder S. Salem th 25 Aug. 2001 171 Chapter XXVI INSURANCE CORRESPONDENCE Insurance is a contract by which the insurer (Insurance Company) in consideration of the payment of a sum of money called premium, agrees to pay a specified sum to the insured on the happening of a certain event. 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 business in India was in the hands of Joint-stock companies. by Life Insurance Ordinance of

1956, the management and control of the business is vested with the Central Government. This Life Insurance Corporation took its shape 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 the relative advantages. There is a proposal form to be filled in After submission of the proposal

form duly filled in along with the evidence in support of his statement, the corporation will arrange for his medical examination 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 the policy. The policies are also of many kinds, for example, Endowment policy, Whole-Life Policy, Joint Life Endowment policy etc. Then the policy may be with profit or without profit The premium of policy without profit, is lower than the premium of policy with profit. There are various other kinds of policies eg Educational Annuity policy, Multipurpose policy, Children’s Deffered Assurance, Convertible Terms Assurance etc. Rates of Premium The rates of premium will be published in the prospectus of the Corporation. The Corporation is prepared to insure the lives of even those whose health is below the average standard. The premium of those 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 the contract. Grace period is also allowed to remit premium after the due date. Generally one month grace period is allowed to remit premiums other than monthly installments. For monthly installments 15 days grace is allowed beyond the appointed time within which the premium must be paid. If not, the policy lapses Surrender value It happens sometimes that policy-holder may not be able to remit the premium regularly. And this position may lead him to surrender the policy. The Insurance Corporation will pay to the assured the surrender value if he surrenders his policy and forgoes his claim. The surrender value of a policy represents the premium paid together with interest to the assured less the expenses of the management of the company during that period. 172 Model 259 : Letter accompanying the policy INSURANCE CORPORATION LTD. Mumbai

– 400 020 18th January, 2002 Mr. KS Menon, West Street, Mumbai – 400 010 Ref. : Life Policy No 135896 Sir, I have pleasure in sending you herewith your life policy. Since you have become a member of this corporation, you may naturally with to see the prosperity of this organisatoin. This scheme not only provides for the future but also many other benefits that are open to policy holders. Therefore, please persuade 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 be rectified. Thanking you Yours truly, For Insurance Corporation Ltd. Encl : as above Model : 260 : Enquiry in order to surrender a policy K.S Nadar 1873, Big Bazaaar, Salem th 19 Jan. 2002 The Manager Insurance Corporation Salem Life Policy No. 43785962 Dear Sir, I would like to surrender by above policy as I find it financially very difficult to continue the remittances. Therefore, it is requested that the

surrender value of my policy may please be intimated to me as early as possible. Thanking you Yours faithfully K.S Nadar 173 Model 261 : INSURANCE CORPORATION Salem th 25 January, 2002 Mr. KS Nadar 1873, Big Bazaar Salem Ref. : Policy No 437262 Dear Sir, With reference to your letter dated 19th January, we request to inform you that you are not entitled to demand surrender value of your life policy. As perthe prospectus of the Corporations policy holder will be entitled for the surrender value only after two annual premiums have been remitted. Since you have remitted only one and a half years, premiums the policy has no surrender value. Yours faithfully For Insurance Corporation. . Model 262 : Asking for loan M.S Thirupathi 1572, Temple Marg Madurai – 625010 25th January, 2002 The Manager Insurance Corporation, Madurai – 825 001 Ref. : Life policy No 4557292 Sir, I hold the above policy on my own life and have remitted premium up-to-date. At present I am pressed for money.

Therefore, I would like to know the maximum amount of loan that can be granted against 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 Model 263 : Frederic John, M.A House No . 354 Palayamkottai Junction 1st Feb. 2002 The Manager, 174 Life Insurance Corporation Thirunelveli – 627002 Ref. : Life policy No 147837 Sir, Due to frequent transfers and shifting of my residence from place to place, the above policy has been lost. I searched everywhere but it could not be traced out. Therefore, please let me know the procedure 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 one Symon Joseph 1746, Beach Road, Chennai – 600010 1st February, 2002 The Manager, Insurance Corporation Madras – 600 012 Ref. : Life policy No 43789 Sir, I am sorry to inform you

that my present financial position does not permit me to continue the remittance of premiums. As such I wish to have the policy converted into a paid up policy. Please let me know the surrender value Thanking you, Yours faithfully Symon Joseph Model 265 : Assignment of the policy R. Rajesh Nadar 1862, Mount Road, Chennai – 600 013 10th February, 2002 The Branch Manager, Insurance Corporation Chennai 600 001 Ref. : Life policy No 417129 own life Sir, Please take notice that my life policy has been assigned to my wife Mrs. Rukmini Nadar I am also sending the prescribed forms duly filled in as per your instructions in your letter of 1st February, 2002. 175 Please register the assignment in your record books. As you desire, the life policy is also enclosed herewith and the same may please be returned when done with. Thanking you, Yours faithfully, R.R Nadar Model 266 : Claim by death of a policy holder Mrs. Geetha Chettiar 1248, Nadar Street, Chennai – 600 020 15th Feb. To The

Manager The Life Insurance Company, Chennai – 600 001 Ref. : Life policy No 52389 Sir, I regret to inform you that my husband Sri K.P Chettiar, died of blood pressure on 29th Jan He had insured his life for Rs. 5,000/- He had assigned the life policy in my favour Your record will prove everything Therefore please send me the necessary forms, to be filled in by me and intimate the other details relating to it. I request you to take immediate action in this matter Thanking you, Yours faithfully (Mrs.) Geetha Chettiar Model 267 : Changing the mode of premium payments M.S Devan Temple Road, Near Beach, Chennai – 600 020 15th Feb. 2002 The Branch Manager Life Insurance Corporation Chennai – 600 001 Ref. : Life policy no 48929 Sir, With reference to the above policy on my life, I would like to make the remittances of the premiums quarterly instead of annual remittances. Therefore, let me know the procedure to be followed in this connection If there are prescribed forms, they may

please be sent to me. Thanking you. Yours truly M.S Devan 176