Department Of Technical Education

Andhra Pradesh
Name : A.Ram Reddy
Designation : Lecturer
Branch : D.C.C.P.
Institute : SRRS Govt. Polytechnic, Sircilla
Year/Semester : IV Semester
Subject : Business Correspondence
Subject Code : CCP-404
Topic : Circular Letters
Duration : 50 Minutes
Sub Topic : Meaning, Different situations of
writing Circular Letters
Teaching Aids : PPT
CCP404.35 1
 Objectives

On completion of this period, you would able to

know:

 Explain the different situations in writing Circular

letters

 Write Circular letters

CCP404.35 2
 Recap

 Circulars Letters are the letters which contain the

same subject matter addressed to different persons.

 Establishment of a new firm, change of address,

establishment of a branch etc. one some situations

in which circular letters are written

CCP404.35 3
Different situations for writing a
Circular Letter

Establishment of a New Firm:

 When a new business is opened, advertisement is

made to attract the customers.

 But old customers are informed about new business

through letters.

CCP404.35 4
 Establishment of a New Firm
This letter contains:
 Circumstances which inspired to start the business.

 Self-introduction.

 Name and address of business firm and nature of

business.

 When and where the business is to be started and

who will be in charge of the business.

CCP404.35 5
Establishment of a new firm
This letter contains:
 The personal experience of the important personnel
of the firm.

 The amount of capital of the firm.

 Name of the Bankers.

 The kind of goods manufactured, prices, guarantee

period etc.

CONTD
CCP404.35 6
 What new facilities will be offered.

 Specialty of the products.

 Request to the customer for orders.

 Goods offered for sale on this special occasion

 Facilities offered

CCP404.35 7
Establishment of a New Firm

Phone:23257890
S.BENERJEE SILK MERCHANTS

59, College Street,

Calcutta.

Lr.No.SE/8/08. Date:14-8-2007.
Dear Sirs,
I have much pleasure to inform you that I have established
today in this city, a Silk Business under the firm name of:
S.BENERJEE
Having been engaged in the same branch of business for
the last ten years in Patna, I have gained through knowledge
and experience in it.
Contd….
CCP404.35 8
 Establishment of a New Firm
The capital with which I commence business here is quite
adequate to meet the various demands of a business on a
large scale and it will always by my chief endeavour to provide
well assorted stock, large selection cheap prices and prompt
attention to every matter.

Please take note of my signature given below.

Yours faithfully,

S.Benerjee.
N.B.: Do not write “take notice of the signature”; that is not the
object of
the circular letter. Write, “Take note of the signature”.
………

CCP404.35 9
Different situations for writing a
Circular Letter
Admission of a New Partner:
 A partner may be admitted, when the firm needs
capital to expand the business, or
 When the incoming partner’s personal and valuable
experiences and services are required for other
reasons.
 Whenever a change appears in the partners or in
the partnership firm,

 It must be intimated to the customers and usually a

circular letter is written for this purpose.
CCP404.35 10
 Admission of a New Partner
This letter contains :

 Self introduction.

 The circumstances for admission of a partner.

 Amount of capital invested by him.

 His personal knowledge and experience.

 The change in constitution.

CCP404.35 contd 11
 The new partner’s signature may be given at the end
of the letter.

 His position in the firm.

 An expression of thanks to all customers for their

past co-operation, and

 A request for its continuation.

CCP404.35 12
 Admission of a New Partner

Grams:”SRI” Phone:2234676
SRINIVAVA AGENCIES
25-2-135,Abids,
Hyderabad.
Lr.No.SD/6/08. Date:21-3-2008.
To
--------------------
--------------------
Dear Sirs,
The expansion of our business and consequently the opening of another
Branch in Western India has necessitated additional capital and assistance.
We have the pleasure to inform you that we have taken Mr.------------- our
Branch Manager at ---------------as a partner.
Contd……
CCP404.35 13
 Admission of a New Partner

Mr.-------------has been associated with our firm for the last 15 years
and is a seasoned businessman. As a matter of fact, successful running of
of that branch is due to him Mr.----------------brings successful amount of
capital to enable us to expand our business activities. There will be no
change in the name and policy of the firm on the admission of Mr.----------.
We take this opportunity to thank you for your kind support in the past
and hope for its continuance.
Yours faithfully,
for SRINIVASA AGENCIES,

Partner.
……….
CCP404.35 14
Different situations for writing a Circular
Letter
Retirement of a Partner:
This letter contains :

 Self introduction.
 The circumstances which lead for writing this letter.
 The reasons for retirement – old age or any other
reason.
 Regret the loss of services of the person who
retires.

CCP404.35 15

contd
 Application of his personal interest in the firm.

 Change in the business if any.

 Constitutional changes.

 Soliciting the confidence of the customers as

before.

CCP404.35 16
 Retirement of a Partner

Telegrams: ”SINGH” Phone:22345678

SINGH ENTERPRISES

3-3-33,Begumpet,
Hyderabad.
Lr.No.SD/25/08. Date:01-3-2008.
To
--------------------
--------------------
Dear Sirs,
We regret to announce the retirement of Mr.-----------a senior partner
and one of the founders of the firm, on the advice of his family doctor.
Though we will feel his absence from the active association with our firm,
but he has kindly agreed to continue to act in an advisory capacity.
CCP404.35 Contd…… 17
Retirement of a Partner
We will, of course, miss his valuable assistance but our business
policy, we assure you, will continue to remain the same as hither to.
There will be no change in the constitution or name of the firm.

The deficiency caused by the withdrawal of capital by Mr.----------

has been made up by contribution by the other partners towards their
capital and therefore the capital of the firm remains unaltered.

We thank you for your confidence in the past and trust that you
will give us an opportunity to prove that our standard of service has
not been affected in any way.
Yours faithfully,
for SINGH ENTERPRISES,

Partner.
……….

CCP404.35 18
Summary

So far we have discussed about:

 The meaning of Circular Letter.

 The Different situations of writing the Circular

Letters.

 Points which are written in different types of letters.

 Model Circular Letters.

CCP404.35 19
 Quiz
1) A letter informing establishing new firm contains

a) details about new business

b) details about other things

c) none

d) all the above

CCP404.35 20
Frequently Asked Questions
 Draft a circular letter announcing the retirement of a
partner of your firm.

 Write a circular letter announcing the opening of a

new branch of your firm in New Delhi.

 Draft a circular letter announcing the admission of a

new partner in to your business.

CCP404.35 21