Professional Documents
Culture Documents
BUSINESS LETTERS: These are letters from business houses to their customers or other
business houses or to statutory bodies; they are also from individuals to business houses. The
aim of these letter is to increase one`s business prospects, and hence tact and persuasive power
is used in writing them. Business letters are the life-breath of business. Despite the availability
of telephone, conventional mail is still very popular. It also increases the reach of a business
house. A commercial business letter is a letter written in formal language, usually used in
business organizations. It grabs the reader’s attention, provides information, makes a
recommendation, asks for attention, supports your position, explains benefits, etc.
Kinds / Types of letters:
1. Personal letters: These being letters to friends and family, express emotions or give news
in an informal manner. They are often handwritten and have little restriction of style and
format.
2. Social letters: These are in the form of invitations (to a wedding, a dinner, etc) and follow
a certain format, sometimes with ample use of the imagination. Death notices are also sent
in a standardized format.
3. Official letters: They originate from government offices, corporations, etc and move
within the narrow restrictions of law. Hence they sound very formal. A distinct and limited
vocabulary is used in such letters.
4. Business letters: These are letters from business houses to their customers or other
business houses or to statutory bodies; they are also from individuals to business houses.
The purpose is to increase one’s business prospects. The various kinds of business letters
are as follows:
a) Enquiries and reply letter: A letter of enquiry is written to secure information about
goods or services that you may require. In this, you state your purpose and ask for the price
list, quotation, sample, etc. It is a letter from prospective buyer to a seller. And answer to
the enquiry should be given that answer is only known as reply letter.
b) Quotations, estimates and tender notices: A quotation is an offer to sell goods at a given
price and upon the stated conditions. That enables the prospective buyer to know where the
seller stands in the deal. Estimate is the approximate value which may be happen to the
product.
c) Orders and letters informing of their fulfillment: A letter of order is a legally binding
contract; hence it has to be written with proper caution. If an order is sent over the
telephone, it is desirable to confirm it in writing. An order must be promptly acknowledged,
especially if the fulfillment is going to take some time. It must be in writing letter or sending
a printed acknowledgement card.
d) Circular letters: When the same information is needed to pass to many people’s which is
not possible for him to say one by one then the circular is issued. While the body of the
letter remains the same. In each letter it can be mentioned the name of the recipient his
address and use of appropriate salutations.
e) Letters requesting payments: Reminding the customers about their credit for the product
and giving information about the amount this letter is requesting payment letters.
f) Sales letters: A sales letter is a type of personalized advertising right into the customer's
house. Unlike general media such as newspapers and public posters, it is sent to some select
prospective customers whose list is prepared on the basis of their higher potential as
customers. The purpose of a sales letter is to make the reader feel the need for an item and
make him buy it.
g) Complaints (claims) and replies (adjustments): Complaint letter is the letter written by
the buyer to the seller when the goods or services are getting delayed or not up to the mark
to get an adjustment or corrected. An adjustment letter is written in response to a complaint.
It explains how the complaint will be remedied. The first step towards solving a complaint
is to investigate the causes of the complaint and to assess your responsibility in the matter.
Thereafter you may either grant an adjustment or refuse it.
h) Goodwill letters: Greeting, Thanks, Congratulation etc... These kinds of letter are send
by the firm or by any kinds of industry to create a name of the company these kinds of
i) letter may increase the reputation of that particular institution.
j) Agency Letter: An agent is one who is appointed to act for another. The person who
appoints the agent is known as the principal. The agreement between them is known as the
agency agreement. The person appointed on behalf of the other person in the company to
uphold the duties & carry out the work.
k) Collection Letter: Collection letter means it is a letter written by the seller to the customer
to recover or collect the dues for the goods and services given on credit. It customer has
not paid in time it necessary to remind the customer to make the payment.
l) Credit and status enquiries: The letter that is written for obtaining information about a
business enterprise is termed as business status inquiry letter. The purpose of writing
this letter is to obtain information relation to: Financial capability or credit worthiness. .
m) Import-Export letters: Import export business is another aspect of general trade. The
only difference is that the trading is between an indigenous concern and a foreign company.
Normally, these letters have to be written with an understanding of the working of the
working company and the cultural environment of the people who are responsible for that
foreign company. In fact, export business also involves communication at different levels,
with licensing authorities, transporters, customers, authorities and others.
n) Correspondence with banks: Correspondence with banks is essential for organizations.
Banks also are business houses and they have to correspond with clients and customers.
Banks whether private or Public, Local or foreign, have to face stiff competition from
others. Computerized accounts, Automatic Teller Machine, Credit and Debit cards have
enlarged the scope of business. Banking correspondence is of a special nature because it
deals with finance. Letters have to be carefully written to protect the interest of the bank as
well as its clientele.
o) Correspondence with insurance companies: The basic risk covered is financial. It is a
contract between an insurer and an insured. In it, the insurer agrees to pay or compensate
for the loss. In return to which the insured pay premium for a fixed period of time. Any
written information regarding it is insurance correspondence.
p) Job-related letters: A routine offer letter contains the position, department, start date,
reporting relationship and job duties, salary and description of benefits. Many employers
provide an offer of employment that is contingent upon the candidate passing a
background check, and that would be stated in the offer letter.
q) Internal communication: It is the transmission of information between organizational
members or parts of the organization. It takes place across all levels and organizational
units of an organization.
r) Correspondence with public authorities
s)Miscellaneous letters: These include letters to the editor, open letters to famous persons,
letters by non-government organizations, etc.
1) Clarity: Clear thinking and simple expression are the two important virtues of effective
writing. A good letter should show its idea directly and clearly. Each sentence should be as
simple as possible. The reader should have no difficulty in understanding what the writer
means to say. When the reader gets the same meaning from the-message as what the sender
intended, it is a good letter.
2) Conciseness: Transmission of maximum information by using minimum words should be
the aim of letter-writing. Unnecessary details and roundabout expressions should be avoided.
People are busy and they receive a number of letters daily. Unless one says quickly what one
wishes to say, he will not be able to get the attention of the reader and focus it on the message.
Therefore, a letter should be simple and brief.
Long Short
They do not have money. They have no money.
It is a company which is very wealthy. It is a wealthy company.
3) Completeness: The letter should contain all the essential points a reader is expected to
know. For example, a sales letter should include the description of the goods, price, quality,
how and where to buy, the date of delivery, discounts etc. If it gives only partial information,
it is not a complete letter.
4) Correctness: The correctness demands no error at all in grammar, idiom, spelling, and
punctuation. Besides, the information given in the letter must be accurate; otherwise it will
shake the confidence of the reader. The message should not be transmitted unless the sender
is sure of its correctness.
5) Courtesy: Courtesy means politeness. It always pays to be courteous in business. It softens
the sting of an unpleasant piece of information, creates goodwill and produces a favourable
response. Goodwill is a great asset for an organization and courtesy in correspondence is one
of the most natural and economical means of building it.
Plain More courteous
We have received your letter … Thanks for your letter…
Your letter is deliberately wrong… To set the record correct, we may submit that
6) Cheerfulness: There should be no negative approach in a letter. It must begin with a
positive and optimistic note. The approach should be friendly and convincing.
7) Promptness: Promptness in replying a letter is absolutely necessary. The general practice
is to reply a letter the same day it is received. When it is known that a reply to a letter requires
time it is necessary to acknowledge the letter received and intimate the probable time required
sending full reply.
8) Appropriateness: Appropriateness refers to writing or replying letters keeping in mind the
relation and psychology of the reader as well as the need of the occasion. The tone, style and
language should be changed according to the occasion.
9) The ‘You’ attitude: In business letters, the reader’s interest must be emphasised and not
the sender s interest. To make letters effective, avoid words such as T and “we’ and use as
many as ‘you’ as possible. The ‘you attitude’ can be used effectively in all kinds of business
letters.
We attitude You attitude
We are happy to inform … You will be happy to know…
We shall send the free copy if we Your free copy will be sent to you if you
receive… reply…
10) Concreteness: A business letter has to avoid approximate statements when exact ones can
be given or are expected. For eg., a complaint letter can replace the phase ‘loss on a large
scale’ by the phase ‘loss of a 1000 man-hours’.
11) Convincing power: Every letter sells an idea and is, to that extent, a kind of sales letter.
To get appropriate action is the aim of the letter, for which all the skills of a good sales letter
are to be applied. One has to state the benefit to the receiver and the reason why, and do so in
appealing language.
12) Integral: The purpose of business communication is to create understanding, bring about
cooperation and initiate constructive action. Therefore, all communication should be in
conformity with the general objectives of the organization
1 Heading: Many business organizations use printed letter head for business
correspondence. The letterhead contains the name, the address, the line of business,
telegraphic address, telephone numbers, telex numbers, e-mail address etc.
2 Date: The date should be indicated in the upper right hand corner of the letter sheet. It is
generally written two or three spaces below the last line of the letterhead.
There are two methods of indicating the date:
a In the order of day, month and year — 10 July 1999.
b In the order of month, day and year — July 10, 1999. Both methods are acceptable.
It is advisable to write the names of the month in full.
3 Reference number: Every letter sent by a firm should carry a reference number just as
vehicles carry a registration number. It identifies the letter for reference and for purposes of
law. It may include the file code, department name in the form of initials and an outward mail
number. However, it should be short and handy.
4 Inside address (receiver’s): The inside address consists of the names and address of the
person or firm to whom the letter is written. It is generally written two spaces above the
attention line and two spaces below the level of date. If there is no attention line it is given
above the salutation in the left margin. The full address, i.e., the name of the person, firm,
street, road etc. should be written as indicated in the source you got the address from. The
details should not be abbreviated.
While addressing a firm, ‘Messers’ is used before the name. If the firm bears personal title,
messers should be used. If the letter is addressed to an officer by name write Mr. or Shri before
the name. If the officer is an unmarried woman add Miss and if married Mrs. or Smt. before
her name. For eg.,
(i) Mr. G.R. Guru (ii) The US Embassy
Personnel Manager Shantipath,
Zonal office, Kingsway, New Delhi 110021.
Nagpur.
5 Attention line: When a letter is addressed to a company so that it should reach a particular
office by name or a particular department, then attention line is typed below the inside
address. This line is generally underlined.
Attn: Mr.A.C.Joshi, Servicing Engineer
For the attention of Mr. K.Sanjay
Attention line, however, need not be a part of every letter.
6 Salutation: Salutation means greetings. It shows the respect or affection or politeness
which you introduce in a letter. The choice of salutation depends upon the personal
relationship between the writer and the reader. It is placed two spaces below attention line
or two spaces below the inside address. Some of the common salutations are: Dear Sir (if
the addressee is a male), Dear Madam (if the addressee is a woman, married or single),
Dear Sirs (if the addressee is a firm whose name is prefixed with M/s or Messrs), Dear
customer / Subscriber / Editor, Ladies and Gentleman, Your Excellency, Your
Highness and so on. The salutation comes two spaces below the inside address.
7 Subject line: This line (optional) is used for indicating the theme of the letter. The purpose
of subject line is to let the reader know immediately what the message is about. By seeing
this the reader can understand at a glance what the letter is about. The usual practice is to
type this line in a double space between the salutation and the first line of the body.
Dear Sirs,
Sub.: Payment of Bill.
8 Reference: In a reply to an earlier letter reference numbers, date etc. may be mentioned
below the subject. Subject and reference must be separate and must stand out clearly to get
the attention of the reader.
Sub: Your letter no. G-185 dated January 2015 about filing tax returns
9 Body of the letter: The body is the most important part of a letter. The purpose of this part
is to convey the message and to produce a suitable response in the reader. It is, therefore,
important to organise and arrange the material very carefully.
Generally, the body consists of the following:
(i) Opening paragraph: The opening paragraph should be written in such a way that it
attracts the attention of the reader and makes him go through the letter.
(ii) Main paragraph: The main paragraph contains the subject matter. It should cover all
the relevant points which the writer wants to convey. It should be written in simple, clear
and unambiguous terms.
(iii) Closing paragraph: The closing paragraph should indicate the expectations, intentions
and wishes of the sender.
10 Complimentary or Formal close: This is equivalent to ‘Good bye’ in conversation, and
is followed by the signature of the writer. The formal close depends on the relationship
with the addressee. Do not close a formal letter with ‘With regards’ or ‘With warm regards’.
Do not end the letter with Thanking you.
Complimentary close Remarks
This is used in official correspondence with superiors
Yours faithfully,
and with government departments. Write
Yours truly,
‘Respectfully’ if the addressee outranks you.
Yours faithfully, This is standard complementary close in business
Yours truly, correspondence.
Yours sincerely, It is less formal. It is used when the writer is familiar
Sincerely yours, with the correspondent.
(Yours) cordially, This is used in formal business letters. One can drop
(Yours) sincerely, ‘Yours’ if one desires.
11 Signature block: The formal close is followed by the signature and name and / or
designation of the letter writer. Some of the signature blocks have this appearance:
a. A sole trader may sign letter as Yours faithfully
S.J. Patel
Proprietor
b. In case of a partnership firm, any one of the partners may sign either by writing in ink
the name of the firm or putting his signature below the typed name of the firm.
Yours faithfully
for KEVIN & CO
S.J. Neeraj
Partner
Per Pro signatures: Per pro or p.p. is the abbreviated form of per procurationem, a Latin
phase meaning ‘as an agent for’ or ‘on behalf of’. A firm may authorize a reliable employee
to sign letters on its behalf. This authority is delegated by the execution of a legal instrument
known as power of attorney. While signing letters, such employee will put per pro, or pp,
before the name of the firm: Per pro KEVIN & CO. c. In
case of a company, important officers such as the managing director, the manager, the
secretary, etc, may have the authority to sign letters on behalf of the company.
12 Enclosure notation: A letter may enclose a document with the abbreviation Enc., indicate
that a brochure, draft, cheque, money order, or other document accompanies the letter. It
starts at the left-hand margin. This is already mentioned in the letter with a phase like ‘we
enclose a price list as desired by you’. This again mentioned below the signature block. If
more than one item accompanies a letter, the notation should indicate how many there are.
13 Copy notation: Sometimes, a copy of the letter is sent to another person or official. Copy
to: All departments
Copy : Sales supervisor
cc: Record Section (‘cc’ stands for carbon copy)
14 Identification marks: Some person other than the signatory of a letter – the typist or junior
officer – who is co-responsible for the letter puts his initials on the letter in the typed form.
15 Post script or PS: Sometimes useful information arrives after the letter is typed, or an
afterthought occurs. This is typed at the bottom of the letter, or is handwritten, n as few
words as possible. Some letter writers deliberately plan a post script to give additional force
to their letter. P.S: The offer is valid only up to 31 st December 2015.
16 Miscellaneous: There may be occasions to write some more notations such as ‘By Speed
Post’, ‘Confidential’ or ‘Urgent’, and this is written in the open space to the right above the
inside address.
SAMPLE LETTER
LAYOUT DESIGN OF FULLY BLOCKED FORM
EDUCATIONAL PUBLISHERS
We are very glad to inform you that we are sending a copy of our recent publication Business
Correspondence for your reference and recommendation. The book is written in simple
language and suits the new syllabus of the Madras University. The book runs nearly 430 pages.
The price of each volume is Rs. 160/-.
Yours sincerely
For PRASANNA PUBLISHERS & DISTRIBUTORS
SP Meyyappan
Proprietor.
2. Full Indent or Modified block: In modified block style, each of the lines following the
first line of inside address, subject, enclosures, etc., are typed in different margins, where
some of the parts are moved to the right, and some punctuation marks are added to the
inside address, salutation and complimentary close. In this format, the date line and the
closing lines are deeply indented so that the end of each line is nearly at the margin. This
modifies the block form by making the letter less crowded on one side. This is also known
as Hanging style. This method consumes a lot of time for preparing a letter, and is also
shabby to look at. Hence this method has been out of practice for a long time.
This is the traditional form of layout and is very popular in England as well as in our
country. The special features of this method are as follows:
1. Under this method, the inside address, opening salutation, body of the letter etc. are all
indented five space from the previous lines.
2. 1 ½” Margins are generally given on both sides and the date is so placed that the last
figures serves as a guide for the fight hand margin.
3. Every line of address has a comma at the end and the last line ends with a full stop.
4. The first line of each paragraph begins away from the margin or indented.
5. The complimentary close begins at the centre of the typing line.
SAMPLE LETTER
CLASSIIC ENGINEERING WORKS
Mr. C. AbilashSekar,
Trading Company,
45, Bazaar Street,
Coimbatore – 641 001.
I am writing to you personally just to say that now very much I appreciate the warm
welcome you extended to our Managing Director to Mr. Sukkal when he visited your town last
week.
The help and advice you gave him and the introduction you arranged for him have
resulted in a number of very valuable business contracts and I should like you to know how
very grateful I am for all you have done to make them possible.
I realize the value of time of a busy executive like you and this makes me all the more
appreciative of the time you so generously gave to Mr. Sukkal.
Yours sincerely,
For CLASSIC ENGINEERING WORKS,
RM. ARUNACHALAM.
General Manager.
3. Semi-block Method (mixed style): In this style, apart from the punctuation marks above,
the signature block is moved to the centre. At some additional work to the typist, this makes
the letter more balanced and graceful.
Sketch showing Semi- block method of layout of a business letter
Telephone: ----------------- Telegram::------------------------
Post Box No: -------------- Telex: -----------------------------
1. Name of Sender
(Details of Business)
Address
--------------------------
--------------------------
2. Ref No: 3.Date----------------------
4. Inside Address
--------------------------
--------------------------
Ref -------------------- (Receiver’s reference) --------------------------------
5. Sub: --------------------------
6. Salutation --------------------------
7. Introductory Para ---------------------------------------------------------------------
---------------------------------------------------------------------
Main Body -------------------------------------------------------------------------
---------------------------------------------------------------------------
Closing Para -------------------------------------------------------------------------
----------------------------------------------------------------------------
8. Complimentary close
Sd/-
(Name)
9.Designation
For: ------------
10. Encl: 1.------------------------
2 ------------------------
11. Copy to: 1.------------------------
2 ------------------------
UNIT II
BUSINESS LETTERS AND PERSONNEL CORRESPONDENCE
I. ENQUIRIES:
The first step of a commercial transaction is to make enquiries. Enquiries are the most
common type of business communication. They are very important because an enquiry, if
properly made, would bring valuable business information.
Meaning: A letter of enquiry is an information seeking letter. Enquiry letter is a letter written
by a potential customer who desires to buy goods and services offered by another organization,
seeking information on various matters such as availability of goods, prices of certain goods,
quality, trade terms, delivery mode, etc. There are two types of enquiry letters viz, Solicited
and Unsolicited letter of enquiry.
Unsolicited letter of enquiry: Where a buyer takes initiative to ask for information, it is called
an unsolicited letter of enquiry.
Purpose of an enquiry letter:
• To know the availability of certain goods of specified quality.
• To know the current price of goods.
• To ensure purchase of goods from the cheapest source of supply as letters of enquiry are
addressed to a number of dealers.
• To tap new sources of supply.
• To know the details of allowed financing-credit.
• To ask for sample.
Important aspects of or guideline for drafting an enquiry letter:
The following general tips should be remembered while writing a letter of enquiry:
1) The purpose of enquiry must be clearly stated.
2) The quality and quantity of goods required should be mentioned very clearly, besides
requirements as to packing, etc. must be given in full.
3) Order size may also be indicated. The supplier is likely to quote a lower rate in case of bulk
buying.
4) If any special form of packing or mode of delivery is desired, it must be clearly mentioned.
5) The probable time required for delivery, terms of payment, discount allowable, etc, must
be ascertained.
6) If samples or patterns are desired before ordering for supplies, it must be ascertained.
7) To facilitate proper handling and checking, the list of items, if any, may be given in a
tabulated form with proper identification/specification with product name/brand, etc.
8) Letter of enquiry should indicate whether one would like to purchase for cash or credit
and any other terms of payment. In such a letter, credit references may also be given,
especially in case the intention is to have credit and when it is the first transaction.
9) Letters of enquiry should be brief, specific and clear. Sentences should not be long, but
should be simple.
SAMPLE: SOLICITED ENQUIRY LETTER
Tamil Nadu Electrical (Pvt) Ltd.
Ref: NEP/253/11
Dear Sir,
We have read your advertisement in The Hindu, dated 10-03-11 for stockiest of your
Fast Tracker brand of fans.
We are an old and established firm in the city of Kerala. We deal in a wide range of
electrical goods among other things. We are willing to take up dealership for your celling fans
and would appreciate it, if you would kindly send us your terms and conditions of awarding
dealership. We can furnish you with satisfactory bank and other references.
Thanking you,
Yours faithfully,
R. Radha
Manager,
For Tamil Nadu Electrical (Pvt) Ltd.
SAMPLE: UNSOLICITED ENQUIRY LETTER
Raj Opticals
1, Junction Road,
Thirunelveli – 627 756
30th July 2010
M/S Ansar Ali & Sons,
Chakla Street,
Mumbai – 400 056
Dear Sir,
As we intend to purchase large stocks of your sunglasses, please send us your latest
catalogue and price list.
Should your prices and terms suit us, we will soon place an order on cash basis.
Yours faithfully,
P. Jayapandian
Proprietor
Example: Enquiry for marketing the goods in a particular area
Patel Computers Private Ltd.
10th Floor, Patel Chambers, Ellisbridge, Ahmedabad - 380 009
Tel.: 2120018 Fax: 2120211
Vision Computers Ltd.
53, New Market, Indore (M.P.)
2nd June, 2012
Dear Sir
We have seen your new model of Personal Computer (PC) at the Information
Technology Exhibition in Pragati Maidan, New Delhi and are very much interested in this
model. We would like to market the PC in Gujarat if you are prepared to give us the exclusive
dealership for the entire State. As you know, we are the leading computer suppliers in Gujarat
with branches in almost all the main towns. If this suggestion interests you, we shall be glad to
know what prices and terms you can allow us. Please send your latest catalogue.
Thanking you
Yours faithfully
Sd/-
Harish Patel
Managing Director
II. REPLIES:
Routine requests for only a catalogue or a price-list may not need a covering letter. It
may be sufficient to send the requested material with compliments. However, enquiries from
big business houses deserve more attention. When requests are made for credit, then the seller
must clarify the position. It is uncommon to grant credit at the time of a first transaction. But
rejecting the offer outright is also undesirable. Instead, the seller may make a counter-offer in
the form of, say, a higher than usual cash discount.
A reply to an enquiry must take care of the following:
i A reference to the date and no. of the letter of enquiry.
ii Thanks to the party for interest in the receiver.
iii Courteous tone.
iv All relevant information about goods, prices, discount etc.
v Whether the catalogue/price list is enclosed or is being sent separately.
vi Assurance of best service to the sender of enquiry.
Example 1:
Dear Sir,
We thank you for your letter showing interest in marketing our garments. We are
enclosing the catalogue and the price-list requested by you. This price-list will remain valid till
the end of the year. You will appreciate the fact that we have not done any business before.
Therefore it will not be possible for us to extend credit initially but we can offer you a higher
than usual cash discount. We look forward to hearing from you soon.
Yours faithfully,
XYZ
Example 2:
Dear Sir,
We thank you for your enquiry about Washer-dryers and are confident that our model
XL-60 will meet your needs. This machine has the capacity of 60 Kgs. and carries an on-site
warranty against manufacturing defects for a period of two years. Its current price is
Rs. 1, 25,000 excluding taxes. We may add that the prices are due for revision in three months’
time.
We are enclosing our detailed brochure and trust you will find all the information you
need for placing an order. We look forward to your response.
Yours faithfully,
XYZ
III. QUOTATIONS:
MEANING: A quotation is a specific offer for sale. It is sent in response to an inquiry from a
particular person or business house. Thus it is a reply message to an inquiry from a potential
buyer. A quotation includes details about the prices of specific goods selected, terms of
payment and conditions of delivery while writing such a letter, the seller should clearly state
everything as inquired by the buyer. The letter must be written to the point with conciseness
and complete tone. A seller must have the intention to create goodwill through such letter which
will establish a business relationship.
Contents of Quotations:
The quotation may contain the following points:
1. Details about quality of goods offered for sale.
2. Details about quantity of goods offered for sale.
3. Type of quotation.
4. Sale price per unit of the commodity.
5. Term of payment like cash or credit, trade discount, cash discount and other allowances
if any.
6. Time, mode and place of delivery.
7. Details of duties, octroi, etc., payable.
8. Details of packing, labeling, insurance, etc.
9. Net price payable.
10. E and O.E. (errors and omissions expected)
1st August, 04
Sales Manager
Tele-Communication Ltd.
25, Gulshan, Dhaka-1212
Dear Sir,
Would you kindly give us detailed information about the “Nokia 2100” mobile sets recently
advertised by you in the “Daily Star.” we are impressed by the description of the respective
mobile set as advertised by you and expected to purchase if terms and conditions are found to
be suitable. Our annual requirement of such set is around twenty-five thousand (25,000)
pieces.
As we handle a lot of mobile sets each year, we hope and trust you will quote the most
favorable prices and terms.
Yours faithfully
M. A. Karim
Purchase Manager,
Helpline Communication
IV. Credit or status enquiry:
Meaning: Status enquiry means before granting credit to customer/buyer, the seller should
know purchaser financial position & credit work things. If a firm receives on order to be
executed on credit basis it must supply the goods only after confirming the soundness of the
parties, such enquiry is called as status enquiry. It is an enquiry made by the seller to know the
credit worthiness or the financial soundness of a prospective buyer.
Guidelines to be remembered to write the status enquiry:
g A reference of the buyer is men timed in the letter.
h A clear idea is to be given as to why the letter is written.
i The question should concerning the credit worthiest of the buys
j Assurances are necessary to safeguard the privacy of dealing.
k When chances arise are must be ready to return the favorer.
Planet Ltd.
25, Gulshan, Dhaka-1212
1st July, 14
Manager,
Credit operation
Mc-Hill Communication
20, Motijheel, Dhaka-1000.
 Confidential
 Ref: Request for Credit Information
Dear Sir,
The firm named below wishes to develop business with us and has given your name as a
credit reference:
Oxford Ltd.
Radio Link Connector
26, Dilkusha, Dhaka-1000
V. PLACING ORDER:
MEANING: A letter of order is a legally binding contract; hence it has to be written with
proper caution. If an order is sent over the telephone, it is desirable to confirm it in writing.
The order represents a commitment on the part of the buyer to pay for the product once it
is executed. An order letter should contain description of goods (quality, brand, grade, size,
colour, etc), quantity, packing, mode of carriage, time and place of delivery.
Guidelines for placing an order or Order can be placed in letter form by clearly stating
the following:
HIMALAYA STORES
Date: 24/11/2017
Place: New Delhi.
Dear Sir,
Thank you for catalogue and price list. We are glad to place our first order with you
for the following items.
S.No Product No. Product Name Quantity Cost each (Rs) Total (Rs)
1 1047 Anti-wrinkle 500 pcs 100 50,000
2 6032 Moisturizer 500 pcs 75 37,500
3 4253 Almond cold cream 500 pcs 85 42,500
Since we require the above items to replenish our exhausted stock, we request you
to kindly dispatch them by passenger train, carriage forward to new Delhi shall arrange for
taking of the goods at our end.
The R/R and the invoice, at 7% discount may please be sent through oriental
bank Ltd.New Delhi
Yours faithfully
(S.Pal)
V. Fulfillment of order:
Dear sir,
Thank you very much for you order letter no…… of NOV 2018.
we are arranging to send the goods ordered by you within fifteen days by Passenger
train .we are sure you will be well satisfied with the goods .at this price they represent the best
value for your money. beside these, we manufacture and supply a vast range of herbal and
natural health –care items .we are enclosing herewith our latest catalogue for ,we are sure ,you
will certainly be interested in ordering a large quantity of them .
Satyam
UNIQUE BIOTIQUE PRODUCTS
Dear sir,
We are pleased to inform you that your order of 24/11/2010 has been promptly
fulfilled.the cosmetic items ordered by you have been dispatched and you should be getting
them in about ten days from today.
If you wish to have any further information please contact us at once . we shall be
really happy to serve you in whatever way we can.
Yours faithfully
Satyam
VI. COMPLAINTS
Meaning: A complaint letters is a letter which brings the attention of the supplier to the
dissatisfaction suffered by customers. The complaint letter is much like the adjustment letter
except no wrong doing as taken place. Instead, this letter is just to let the reader know that an
error as been found and needs to be corrected as soon as possible. Once again, this letter is a
legal document letting the reader know that something is being done to correct the problem.
IMPORTANCE OF COMPLAINTS:
1 A check on the quality of service and products: Customer complaints open the eyes of
the supplier to the efficiency of his own staff. Complaint and claims offer a good check
on the quality of service or merchandise. Continuous monitoring of complaint letters act
as a control mechanism for their products and services. It is always better to discover a
fault than to let it continue unsuspected.
2 A potential threat turned into an opportunity for growth: Nothing is more detrimental
to good public and business relations than a discontented or dissatisfied customer. If he
writes directly to the company and thereby gets his complaints adjusted, the company is
converting a potential threat into an opportunity for growth. A potential liability becomes
a sales booster because the complainant will spread the word to all his friends and
acquaintances that even a trivial complaint is well-attended by the particular company
which views its customer as its key player.
3 Careful choice of words – an essential ingredient: To stimulate the correct type of
reaction, a careful choice of words is of fundamental importance. An angry outburst will
not solve the problem but will only worsen the situation.
➢ Avoid accusation: It should not give the impression that at the first opportunity,
complaint is leveled against the company.
➢ Avoid being vague and pinpoint the specific complaint: So that the recheck is easily
facilitated.
➢ Indicate the consequential loss: The claim letter should also state the inconvenience
or loss resulted from the error.
➢ Suggest the remedial measure: Adjustment or compensation that is desired must also
be indicated.
➢ When soft words do not succeed: When milder methods have failed to prevent
recurrence of grievances, the complaint letter should be severely worded. But no
account should it be drafted impolitely or rudely.
4 In case of imaginary grievance: The error pointed out may be the result of
misinterpretation or misunderstanding on the part of the complainant. In such a case, the
use of strong abusive epithets will apply to the writer himself. In view of what has been
mentioned above it is clear that while the complaint must be voiced in clear terms for
getting the grievance addressed, it should not impair business relations.
• Write a complaint letter immediately. If time is lost, the party at the other end may
have difficulty in investigating.
• Do not assume that the supplier was to blame. The true cause of the complaint may be
elsewhere.
• Make a thorough enquiry and investigation at your end and make sure you have a
valid ground for complaint.
• Ask for a specific remedy or adjustment to solve the complaint.
• Avoid being rude or sarcastic.
• Address the complaint to the development designated for the purpose.
• If you don`t receive the responds at the first complaint, than you can take a harder
approach.
GUIDELINES FOR DRAFTING REPLIES TO COMPLAINTS
• Promptly acknowledge the letter and thank the customer for writing it,
• Express regret for the inconvenience caused to the customer,
• Admit the fault if something has actually gone wrong,
• Assure the customer of his sincere efforts to make amends,
• Specially what action he is going to take, and
• Close with offer of better service in future.
Sample 1
Drivers Co.
3489 Greene Ave.
Olympia, WA 98502
As someone who has worked with your company for over 3 years, we were very disappointed
to see the documents you produced for our latest Drivers Co. publicity campaign.
As our written agreement stipulated, we expected full-color leaflets with fancy explanatory
texts, but instead, we found that black and white photos had been included in the prepared
leaflets.
I think you will agree that a communication problem exists.
We would like you to send out a photographer to provide us with the promised color
coverage or provide us with a refund.
Yours truly,
Thomas R. Smith,
Director
Sample 2
Soni Publication,
Indore (M.P.)
Date 25/11/2010
SR & Co.
Bhopal (M.P.)
Subject : Letter for apologizing
Dear Sir,
Please accept our apologies for this lapse on our part, We always check all the books before
packing and despatching them. It is really unfortunate that his time you received three defective
sets.
Today itself we are replacing them at our cost. We may also assure you that in future we will
be more careful in fulfilling your orders.
Yours faithfully,
Shiv Kumar
Soni Publication
Document Makers
2398 Red Street
Salem, MA 34588
March 10, 2001
Thomas R. Smith
Drivers Co.
3489 Greene Ave.
Olympia, WA 98502
Sincerely,
Richard Brown
President
MEANING: Collection letter means it is a letter written by the seller to the customer to
recover or collect the dues for the goods and services given on credit. It customer has not paid
in time it necessary to remind the customer to make the payment.
1 Tact and Restrain: To someone that he has failed to meet his financial commitment is a
sensitive matter. Hence you have to use a language of tact and restraint. Moreover you have
to provide for two circumstances that the payment is already sent\received but not within
your knowledge or that the goods/services are unsatisfactory.
2 Polite Tons: A good businessman has his future business angle in mind and uses polite
language in a collection letter. He avoids hurting the reader. Even if it is last collection letter
threatening legal action, goods business requires that you be polite and use words like “with
regret”.
3 Show Understanding of the Customer’s Problems: If customer is caught up in a difficult
financial situation himself, has no ready money and has been unable to realize cash out of
your goods he may have good reasons for not paying or not being able to pay.
4 Progressive Steps in Writing a Series of Collection Letters: It may happen that one
collection call is not enough to get your dues.
X. SALES LETTERS
MEANING: A letter written with the immediate objective of inducing sales of merchandise
or service is called a sales letter. Though any business letter like reply to an enquiry, trade
circular, etc, may ultimately result in a sale, only those letters which have their immediate
objective as sales of goods or services are called sales letter. When it is drafted for circulation
among a large number of people, it becomes a sale circular.
1.Attracting the reader’s attention: The opening paragraph must be cleverly drafted so as to
get sufficient attention of the reader. If it fails to arouse curiosity, the whole sales letter fails.
▪ The routine opening like ‘we have pleasure in informing you’ must be totally avoided.
▪ If it can appeal to the reader’s self-interest, it can start with a question. For eg., Are you
satisfied with the amount of money you save? Have you seen any cheap watch that is good?
▪ A courteous command is another technique used to arouse attention.
▪ A split beginning is another device used to attract maximum attention. For eg, we can’t
make all the T.V. sets, so we just make the best of them.
▪ A statement of significant factor a quotation from an eminent authority will also focus on
attention.
▪ Anecdotes (true story) are also frequently used as attention arousing device..
2. Creating an interest in the product or service: This depends upon the type of prospect
to whom the letter is addressed and also on the understanding of human desires and
feelings. For eg., if a sales letter is sent to a dealer, it should emphasis on profits, if it is
written to the general public, it will concentrate on benefits.
It is stated that there are 25 reasons why people spend money. It is to make money, to
save money, to enjoy comforts, to enjoy good health, to be popular, to attract the opposite
sex, to protect their family, to satisfy their appetite, to emulate others, to take advantage
of an opportunity, etc. By appealing to one or more of these reasons, a sales letter can
create the necessary desire for the product or service in the reader.
3. Convincing the reader by winning his confidence, thereby triggering / firing his
desire: The third part the letter should show facts to prove that the claims made for the
product are true.
Expert testimony: Options of qualified experts in the field constitute a second sales
argument. Opinions of satisfied customers are also given.
Facts: Details regarding the number of sales effected within a specified period, actual
cost of operation, number of satisfied customers, etc., give factual support to the claims
made for the product.
The use of logic: A sample offer of the product, giving guarantee cards, etc., may
appeal to the reader’s reasoning.
4. Motivating action: The concluding paragraph of the sales letter should not only stimulate
action on the part of the reader but should also show how we would benefit by it. Business
reply paid envelopes must be enclosed. The reader should be stimulated to act and to act
quickly.
SALES CIRCULARS
The difference between a sales letter and a sales circular is subtle (small but important).
A sales circular is drafted with a large number of people in mind. It may still address them with
a singular salutation such as Customer, Subscriber, Investor or Client. This is done to create
the illusion that it has been drafted with the recipient in mind. Every copy of sales circular may
even carry a different name and address by using the Mail- Merge facility. It would still be a
circular because the same message is being circulated to all the people.
i) Solicited Application: Based on the advertisement from the company for the job.
ii) Unsolicited Application: Application for the job by advertising that I know the vacancy.
The Advertiser,
Box No:122
The Indian Express
Anna Salai,
Chennai
Dear Sir,
After reading your advertisement in the Indian Express I would like to apply for the position
of store person with your company.
I have been employed with a major company for several years as retail assistant, and have some
stock control experience. My background with a large chemical company has also given me
experience in handling hazardous material, and I am aware this would be an aspect of the store
person position.
Enclosed are my application form as well as a copy of CV and several references.
I look forward in meeting you and talking about how I can contribute to your company.
Yours sincerely,
Len Morrison.
A CV (short for the Latin phrase curriculum vitae, which means “course of life”) is a detailed
document highlighting your professional and academic history. CVs typically include
information like work experience, achievements and awards, scholarships or grants you’ve
earned, coursework, research projects and publications of your work.
HOW TO WRITE A CV
• Contact information
• Academic history
• Professional experience
• Qualifications and skills
• Awards and honors
• Publications
• Professional associations
• Grants and fellowships
• Licenses and certificates
• Volunteer work
• Personal information (Optional)
• Hobbies and interests (Optional)
• Do your research.
• Use action verbs.
• Write clear and concise sentences.
• Restrict your use of articles to a minimum.
• Never use I or other pronouns to identify yourself.
• Use professional language.
• Use area specific terminology.
• Tailor your qualification to the job.
• Screen out any unnecessary or irrelevant information’s.
• Be positive & as specific as possible.
CV EXAMPLE TEMPLATE
1. Contact information
• Full name
• Address (including city, state and zip code)
• Phone number
• Email address
2. Academic history (in reverse-chronological order)
• Post-doctoral program
• Graduate school
• Undergraduate school
• High school
3. Professional experience
• Organization or institution
• Job title/position
• Dates employed
• Details about duties, experience and achievements
4. Qualifications and skills
• Hard skills
• Soft skills
• Accreditations and certifications
5. Awards and honors
• Award name
• Year awarded
• Organization that gave award
• Award details (how often the award is given, how many people receive the award, etc.)
6. Publications and presentations
• Publication citation (including authors, date, summary, volume, page, DOI number)
• Presentation details (including title, date and place of presentation)
7. Professional associations and affiliations
• Name of organization
• Geographic location or chapter
• Dates of active membership
Yours truly,
Jane Smith.
LAYOUT OF TESTIMONIAL:
Varun.K
108, flower bazaar road,
Chennai-600 006
Dear Varun,
When someone takes the time to recount a positive experience, it speaks volumes. And so I
would like to request a small favor – a testimonial that will give others a sense of the experience
and service I offer. Whether it’s a recommendation for a restaurant, a vacation spot or a doctor,
I have always felt that the testimonial is a powerful indicator of excellence. Feel free to either
e-mail me at (email address) or use the enclosed self-addressed, stamped envelope to share
your thoughts on your experience with my company.
I sincerely appreciate your help and look forward to serving your needs for years to come.
Warmest regards,
Vihaan.U
(MANAGER)
APPOINTMENT
Initial intimation of appointment may be given through a brief provisional letter. But
the final document must be drafted carefully as the employment is governed by the terms stated
in it. It should stand the test of law. The terms and conditions should be explicitly mentioned
and offer of appointment made subject to their acceptance by the candidate. A worker may seek
reinstatement in a Labour Court if the employer acts against the terms of appointment. The
executives, who are governed by a “Master-Servant” relationship, can only seek damages in
the event of a mala fide dismissal. The provisional letter of appointment intends to prepare the
candidate for the detailed letter that follows.
ACKNOWLEDGEMENT:
Ref ./call/23
Mr. Amit
Dear Amith,
17 February 2017,
Varun.K
Dear Varun,
We are pleased to confirm your employment by our firm in the capacity of Sales manager.
You will report directly to our general manager, commencing with your start of employment
on 19 February 2017.Your salary shall be 20000Rs per month.For the first year vacation shall
be prorated, so you will be entitled to 10 days vacation for this year.If u agree that this letter
reflects your understanding, please sign the enclosed copy return same for our files. We look
forward to your joining the company.
PROMOTION
“Promotion is advancement of an employee to a better job- better in terms of greater
responsibility, more prestige or status, greater skills and especially increased rate of pay or
salary.”Promotion is the reassignment of a higher level job to an internal employee with
delegation of responsibilities and authority required to perform that higher job and normally
with higher pay. Thus, the main conditions of promotion are:-
1. Reassignment of higher level job to an employee than what he is presently performing.
2. The employee will naturally be delegated with greater responsibility and authority than
what he has had earlier.
3. Promotion normally accompanies higher pay.
Purpose of promotion:
Organizations promote the employee with a view to achieve the following purposes:-
➢ To utilize the employee’s skills, knowledge at the appropriate level in the organizational
hierarchy resulting in organizational effectiveness and employee satisfaction.
➢ To develop competent spirit and inculcate the zeal in the employees to acquired the skills,
knowledge etc. required by higher level jobs.
➢ To develop competent internal source of employees ready to take up jobs at higher level
in the changing environment.
➢ To promote employee’s self development and make them await their turn of promotions.
It reduces labour turnover.
➢ To promote a feeling of content with the existing conditions of the company and a sense
of belongingness.
➢ To promote interest in training, development programmers and in team development areas.
➢ To build loyalty and to boost morale.
➢ To reward committed and loyal employees.
➢ To get rid of the problems created by the leader of workers’ unions by promoting them to
the officer’ levels where they are less effective in creating problems.
March 2, 2012
Harish.R
23, B.N.C. Road,
Chennai – 600 025
March 20, 2012
Sub: JOB PROMOTION CONGRATULATORY LETTER
Dear Mr.Harish,
We are pleased and honoured to inform you with respect that you have been promoted as the
junior accounts officer to senior accounts officer in the organization. I congratulate you on
behalf of the company for the achievement of yours. As your post rows in the company your
responsibility towards your work will also increase. You have achieved this promotion within
the span of one year with your hard work and dedication towards your work. We expect the
same behaviour in future even though you got a promotion. Your salary structure and details
about the compensation everything will be mentioned in the official promotion letter which
will be given to you very soon. If u find any queries and difficulties related to this matter you
can contact the human resource department on the intranet of the companies ’websites. And
once again very congratulations and all the best for the future.
Yours sincerely,
Ms. Aisha Mehta,
Human resource manager,
J and K chartered accountants.
Harish,
28, B.N.C. Road,
Chennai – 600 027
A.S. Senthil,
Sundaram chemicals ltd.
Regd. office: 12, Sansad Marg, New Delhi-110 001
Phone: 534212.
RE: Resignation
Please accept this letter of resignation from the position of manager effective two weeks from
today. My last day at Sundaram chemicals ltd. will be March 25th 2015.
I have accepted a position with another company that will further my growth and development
in my career. I have enjoyed working at Sundaram chemicals ltd and will miss my colleagues.
However, this new position will challenge my growth and further my career.
During the next five days, I am willing to help you in any way to make the transition as smooth
as possible. This includes assisting in recruiting and training my replacement. Please let me
know if there is anything specific that you would like me to do.
Again, it has been a pleasure working as a part of your company.
Sincerely,
Harish.
UNIT III (FUNCTIONS)
UNIT III
BANK, INSURANCE, AGENCY AND SECRETARIALCORRESPONDENCE
BANK CORRESPONDENCE
Banking requires letter writing for the following services: Stop payment, Overdraft limits,
Term loan and Status Enquiries.
Functions of a Modern Banker:
A modern banker has to perform several functions. They are as follows:
1. To receive deposits and grant loans and advances.
2. To discount bills of exchange.
3. To provide safe deposit vault facilities for their customers.
4. To pursue references regarding the financial standing of others.
5. To issue letter of credit, bank drafts, traveler’s cheques etc.
6. To act as agents to buy shares and stock for the customers.
Meaning of Banking Letter:
In performing these services, the banker has to correspond with a number of persons. The
reputation of a banker is judged not only by the efficiency of his services but also by the
appearance of the passbook and his correspondence. That is why tactful, courteous and precise
letters go a long way in building up a banker’s name.
Elements of a Good Banking Correspondence: The essential elements of a good banking
correspondence are secrecy, style, tact, courtesy and clearness.
➢ Secrecy: Bankers deal only with money matters and secrecy in money matters is the first
thing that a client expects from his banker. Expect in cases of enquiry from fellow banker,
a client’s account and its details are treated as absolutely secret and are never revealed to
any other person. Absolute secrecy about the state of a customer’s account is the basic
guarantee in bank dealings. Even when an enquiry is made by another bank, the reply
should be very brief and to the point. The customer’s credit should not be injured in any
way.
➢ Style (Brevity and Conciseness): Good style in bank letters is brevity and conciseness
because the customers are businessmen and they have no time to waste on superfluous
reading. The banker should not be too impersonal or formal in his letters.
➢ Tact and Courtesy: Tact and courtesy are of paramount importance in banking letters.
It is very easy to level allegations against a customer and thereby to lose his account.
Courtesy is particularly very important while writing about overdrawn accounts and
while asking for additional security. Similarly when a request for overdraft is to be
refused, the language should be diplomatic so that the customer takes no offence.
➢ Clarity: Clarity in bank letters must be considered as a basic necessity. The matter
should be clear and precise and there should be no ambiguity. However clearness should
never be sacrificed for the sake of brevity. All unnecessary details should be avoided. If
opinions are expressed, they should not be loose opinions or mere surmises; opinions lead
to decisions and hence they must be backed by actual facts.
➢ Besides, the bank letters should also posses all the essential qualities of a business letter.
“The You Attitude” must be present in all the letters.
1 Formatted letters: In order to ensure uniformity in the format, banks supply pre-printed
letters like account opening forms, loan application form and credit reports. In other
Words, standardized forms are supplied by the banks to the customer. Since it is pre-
formatted, it requires no elaborate discussion and illustration.
2 Individual letters: It represents letters written by individuals on different occasions.
Individual letter refers to each letter which is individually written in each case depending
on the subject concerned and sent to others. Therefore, they are not standardized letters
like formatted letters. This type of letter requires a lot of tact. Individual letters can be
again classified into three kinds namely,
A. Letters between the bankers and their clients.
B. Letters from one bank to another.
C. Letters between the head office and the branch office.
A. Letter between the Banker and the Customers: These comprise of
i Letters from banker to customers: The most important and crucial part of banker’s
correspondence consists in communication with the customers. They include answering
inquiries by customers, complying with the standing instructions of the customers,
handling complaints of the customers regarding dishonor of their cheques, wrong
statement of accounts, debits of bank charges etc.., there are also other occasions when
correspondence is conducted with the customers. and
ii Letters from the customers to the banker: These mainly consist of requests for
opening accounts, enquiries about the interest rates, status enquiries, application for
loans and overdrafts, standing instructions regarding making payment etc..,
B. Letters between bankers: These relate to status enquiries, negotiations of bill exchange,
clearance of cheques etc. Here technical terms normally used in the banking business can
be freely used but should not be used in letters to the customers.
C. Letters between Head office and Branch offices: These consist of Letters from Head
office to the Branch office, and Branch office to the Head office.
1 Letters from Head office to Branch office: these include letters from the Head office to
the Branch, which deal with matters of administration, and convey the decisions and policy
of the head office to its net work of branches. The Head office should serve as a model for
the branches to follow both as regard to its mode of administration and its methods of
correspondence. Therefore, the letters from the Head office to the Branch should serve as
a model in all those qualities such as accuracy, clearness, courtesy etc., They should be
drafted carefully and precisely.
2 Letters from the Branch office to the Head office: Letters from branches to the head
office generally consist of:
i Various monthly, quarterly, half-yearly or annual reports submitted by the branch
manager. These are only factual reports and generally form letters.
ii Reports from branch managers giving suggestions for further development of business
in the branch.
iii Letters recommending appointment of staff, promotion and transfer.
iv Letters containing the date of advances granted to the customers.
v Letters which explains some unconventional decisions.
LIFE INSURANCE
Meaning: Life insurance is more appropriately called as life assurance. It is a contract whereby
the insurer, in consideration of a periodical payment known as premium, undertakes to pay the
insured a certain amount of money to him reaching a certain age or his assignees or nominees
in the event of his death whichever is earlier.
Kinds of Life polices: There are numerous variations in life policies in India, depending on
the purpose, premium amount and the nature of risk coverage and participation in the
different objectives of the policy. There are several types of life insurance policies and of
them Endowment policy, Whole time life policy, and Joint life policy are the most popular.
1 Endowment policy: Under this type of policy, the sum assured is to be paid to the assured
after the completion of a time period (reaching a specified age) or to the nominee of the
assured, if the dies before the time period The premiums on such policies are to be paid
until the assured reaches the specified age or until his death if it occurs earlier. The rate of
premium on this policy is however, higher than whole time policies. In spite of this
demerit, this type of policy is more popular because it is a combination of the elements of
savings, investment and risk bearing.
2 Whole Life Policy: Under this type of policy, the insured sum becomes due for payment
to the beneficiary (nominee) only after the death of the assured. The premiums on such a
policy may be spread over one’s whole life or they may be made payable for a fixed
number of years. In both the cases, the policy does not mature until the death of the
assured. Therefore, the benefit of the policy is available only to the nominee or legal heirs
of the assured after his death, whereas under endowment policy the assured himself
may get the amount if he reaches the specified age.
3 Joint Life Policy: A policy covering more than one life is called Joint Life Assurance
Policy. The assured amount becomes payable on the death of any of the insured under the
policy. It is payable to the survivors. A joint life policy is usually taken on the lives of
husband and wife. The partners of a firm may also take out a joint life policy on their lives.
The surviving partners usually receive the assured sum and they can use it to pay off the
share of the deceased partners in the capital of the partnership firm without affecting the
financial position of the firm.
4 Group Policy: There are other types of policies issued by the L.I.C. and cover a group-
students in a college or workers in a factory. The students are requested to refer to the
prospectus and the relevant leaflets released by the L.I.C. for details regarding those
policies.
5 There are policies for married women, Girls etc..,
6 Term Policy with Growth: They combine savings, lump sum payment and insurance
coverage also.
7 With bonus / without bonus: A share in the profits is given in the case of ‘with bonus’
policy.
Procedure to Take Out a Life Policy:
To take out a life policy, the following procedure should be followed.
1. The person intending to get his life assured should get a proposal from the Corporation or
its agent on request and submit the form to the corporation after duly filled in.
2. The important question in a proposal form is the age. The person intending to get his life
assured should submit evidence in support of his age.
3. After receiving the proposal form dully filled in, the Corporation will arrange for medical
checkup by a doctor approved by it.
4. After studying all the papers and the medical certificate, the Corporation will decide
whether or not to accept the proposal.
5. If the proposal is accepted, the Corporation will inform the person i.e., the assured to pay
the first premium.
6. After the first premium is paid, the Corporation will proceed to issue the policy. The
assurance, however, commences with the acceptance of the first premium itself by the
corporation.
Claim: A claim may be made either on the death of the policy holder or on the maturity of
the policy.
Loan against Life policy: The policy holder can also obtain a loan against the life policy.
He can either get a loan from a bank or form the Life Insurance Corporation itself. The
loan amount shall be 75 per cent of the surrender value of the policy.
FIRE INSURANCE
Meaning: Fire insurance is a contract, under which the insurer, in return for the premium paid
by the insured undertakes to pay or make good the loss suffered by the insured due to fire or
lighting during a specified period and up to the amount specified in the contract. It may be paid
in the form of cash or replacement, or repair of the property damaged by fire. Indemnity is the
main mark of this insurance. The contract is embodied in a document called the “Policy of
Insurance”.
Kinds of fire insurance
i Specific policy: Under this policy, the insurance company undertakes to pay or indemnity
the insured any loss or damage caused by fire to his property up to an amount insured
under the policy. The value of the property is not the criterion to ascertain the extent of
indemnity. Therefore, the property may be even under insured. The loss actually suffered
or the amount insured under the policy, whichever is less is payable to the insured.
Therefore, Loss will be paid only up to a specific amount.
ii Average policy: A fire policy in which the “Average Clause” is incorporated is called
average policy. In an average policy, the property should be insured to its full value.
Under insurance shall land the insured into trouble. According to the average clause, the
amount payable under the policy will be determined on the basis of the ratio between the
sum assured and the value of the property concerned. Example: The value of the property
is Rs.60, 000 but it is insured for only Rs.40, 000. In case the loss is for Rs.120,000, the
insurance company will pay only 2/3rds of the loss i.e., Rs.8,000 only. This is because,
the property is not insured for its full value and is insured only for 2/3rd of its real value.
iii Floating policy: A floating policy is taken to cover the goods belonging to the same
person but stored at different places and in varied lots. Traders generally take out this
type of policy to cover risks in respect of goods lying in various places, docks, warehouses
etc. This policy always contains the average clause.
iv Valued policy: Under this policy, the insurance company undertakes to pay the insured
an agreed value for his goods in the event of their total loss, irrespective of the real value
of the property at the time of their loss. The value of compensation is pre-decided. For
example, if it is agreed by the insurance company that the value of the insured property
is Rs.20,000 irrespective of its intrinsic value and the property is destroyed by fire, the
insurance company will pay Rs.20,000 only i.e.., the agreed value.
v Unvalued Policy: The loss is assessed after the damage.
vi Comprehensive Policy: It is also called ‘All Risk Policy’; all the possible risks are
covered. Premium amount will be higher.
vii Loss or Profit Policy: Loss due to fire accident will be compensated (closure of factory
for 6 months).
MARINE INSURANCE
Meaning: Marine insurance is a contract where by the insurer or the underwriter agrees to
compensate the owner of a ship or cargo for a partial or total loss due to destruction at sea. It
is a contract of indemnity providing protection to ship or cargo against risks incidental to
marine voyage.
Peculiarities of marine insurance
1. A marine policy is valid for a specific period or voyage only.
2. A marine insurance policy is issued upon the following understanding that the ship is sea-
worthy, and it is going on a legally unobjectionable voyage.
There are certain areas of the sea that are so dangerous that the insurance companies refuse to
undertake the risk of insured goods passing through them. They are technically called as
warranties. An area may be declared as a warranty only during a specific season if it becomes
risky during that period only because of excessive ice or rain extremely stormy weather.
Kinds of Marine policies: The principal kinds of marine policies are the following:
1 Voyage policy: Under this policy, the property is insured for a particular voyage however
long or short be its duration. For example, Chennai to Penang. If the ship is changed and
the goods are sent further by another ship i.e.., another voyage, a new policy will be
required. This policy is issued for a fixed amount and not for a fixed period. Generally,
cargos which are exposed to the perils of the sea during transit are insured under this
policy.
2 Time policy: Under this type, the property is insured for specified periods of time say
three months of six months. The period generally does not exceed 12 months. If the goods
do not reach the destination within the period, the policy is to be renewed. Polices of this
kind are generally taken for the insurance of the ships by the ship owners.
3 Mixed policy: A mixed policy covers the clauses of both time and voyage policies. It is
issued on the understanding that the goods will be transported only from a certain place
to another fixed place and the voyage will be completed within a period specified in the
policy. Thus, it is a combination of both time and voyage policies. Mixed policies are
generally issued to ships operating on specified routes.
4 Floating policy: It is a policy where coverage is wide enough comprising shipments at
different intervals. There is only one policy issued for one year and it covers goods sent
in installments by different ships at different times. Whenever the goods are dispatched,
the insured has to declare the full value in a prescribed form describing the ship, and the
voyage of the goods transported by him. The declaration should be made on the specified
form issued by the insurance company. Every declaration filed by the insured will lead
to a deduction in the value of the policy. When the total amount of declaration becomes
equal to the face value of the policy, a new policy should be taken out. The premium is
generally collected in advance for the full amount. This policy is more suitable to regular
exporters.
5 Valued policy: This states the value of the goods, which is agreed by insured and the
insurer. This value need not necessarily be the actual value of the goods insured.
Therefore, there is no argument about what was the actual worth of the lost goods.
6 Unvalued policy: It is issued without determining the value of the goods insured.
Whenever a loss occurs, the value of the goods is assessed by the insurance company
with the help of experts.
7 Open policy: This is a kind of policy undertaking to insure a certain class or classes of
goods to be shipped to specified destinations during a period of time, usually twelve
months. It is similar to a floating policy but it shall not get exhausted as and when the
declarations are made. A separate certificate is issued in respect of each shipment and
premium is collected against each certificate.
8 Blanket Policy: Premium is paid for all the risks in the beginning itself. Depending on
actual loss, additional premium amount will be collected.
9 Fleet Policy: Covering a number of ships and voyages. It is useful to institutions with
regular business in exports and imports.
Duties to Shareholders:
1. Working on details all connected with issuing share certificate, prospectus, application
form, allotment letter, etc..,
2. Maintaining non-statutory books.
3. Arranging funds for interest payment.
4. Arranging for issuing dividend warrant.
5. Issuing notice/agenda for Annual General body Meeting and class meetings.
6. Attending meetings and maintaining the minutes of the meeting.
Duties to the Organization:
1. Communicating the instructions and orders of the Board to other heads.
2. Coordinating the activities of other departments.
3. Assisting HR in recruitment and training.
Classification of Secretarial correspondence: Secretarial correspondence can be to a wide
range of people. They can be classified into three categories as follows:
Correspondence with the Directors: Occasions warranting correspondence with directors
are:
1. Sending notice of board meeting.
2. Giving reply to directors concerned on the instruction of the chairman.
3. Absence director seeking proceedings of a meeting.
4. Replying to the director who wants inclusion of a particular item in the agenda.
5. Replying to the director whose proposal is unacceptable and not in the interest of the
company.
Correspondence with the shareholders: Correspondence of secretary to the shareholders
relates to the following matters:
1. Reply to complaints from the shareholder on dividend.
2. Reply to shareholder’s complaint relating to non-receipt of notice of the meetings, share
certificate, transfer deed, etc..,
3. Convey change in the address of the company or schemes of reconstruction.
Correspondence with the Registrar and the Company Law Board:
Correspondence with the aforesaid authorities relates to:
1. Sending periodical statements and returns.
Points to remember while drafting secretarial correspondence:
The points that must be looked into by a secretary of a company while drafting a letter are:
To the Directors:
➢ The secretary should show politeness and courtesy in his letters.
➢ He must be very tactful especially when he has to write letters which are distasteful to
the directors.
➢ Even while pointing out their mistakes or carelessness, he should draft it in such a way
that he does not mean any offence to them.
➢ He should be impartial.
To the Shareholders:
➢ He should be helpful and friendly in his attitude.
➢ He may have to answer certain indiscreet request from the shareholders. For instance, a
shareholder may seek the opinion of the secretary regarding the likely rate of dividend,
why a higher rate of dividend has not been paid despite a large profit earned, or he may
claim special consideration to a tender submitted by him. In all these cases, the secretary
should politely refuse the requests.
➢ He should never divulge any confidential information favouring any particular
shareholder.
➢ He should not offend the sentiments of the shareholders by pointing out to their ignorance
in company affairs.
➢ He should never enter into any verbal duel or indulge in long arguments.
Precautions to be taken by the Secretary: The secretary in all his letters to the directors
should be very careful and observe the following precautions.
1. Maintain a polite and impartial attitude so as to influence the director to take the right
line.
2. Word them very carefully and tactfully without forgetting that he is their subordinates.
3. Avoid giving any offence to the directors.
Types of reports:
1 Informational reports: These reports present facts about certain given activity in detail
without any note or suggestions. Whatever is gathered is reported without any thing by
way of either explanation or suggestion.
2 Analytical reports: These reports contain facts along with analytical (using careful
examination in order to understand or explain something) explanation offered by the
reporter himself or may be asked for by the one who is seeking the report. Such reports
contain the narration of facts, collected data and information, classified and tabulated data
and also explanatory note followed by the conclusions arrived at or interpretations.
3 Research reports: These reports are based on some research work conducted by either an
individual or a group on a given problem. Such a report is the result of a research.
4 Statutory reports: These reports are to be presented according to the requirements of a
particular law or a rule or a custom now has become a rule. Eg., auditor’s report.
5 Non statutory reports: These reports are not in the nature of legal requirements or rules
wants. Therefore, they are to be prepared and submitted for – the administrative and other
conveniences, taking decisions in a matter, policy formulations, projecting the future, etc.
6 Routine reports: These reports are required to be prepared and submitted periodically on
matters required by the organization so as to help the management to take decisions in the
matters relating to the day to day affairs. The main objectives of routine reports are to let
the management know as to what is happening in the organization, what is its progress,
where the deviation is, what measures have been taken in solving problems and what to
do so that the organization may run smoothly and efficiently. They are brief and only give
the facts.
7 Special reports: These reports are specially required to be prepared and submitted on
matters of special nature. These reports not only contain facts but also suggestions
comments and explanations as well.
AGENDA
Meaning: Agenda is a document that outlines the contents of a forthcoming meeting. It is
usually sent along with the notice of the meeting. Agenda - A program listing items of business
to be transacted in a meeting.
Writing the agenda: The points in the agenda can be written:
1. In the form of nouns, for example,
• Appointment of sub-committee to look into losses….
• Proposal to open a show room at
• Membership drive.
• Building fund collection.
• Review of the month’s activities.
2. With an infinitive verb, for example,
• To appoint a sub-committee to look into losses…
• To consider a proposal to open a go down.
• To organize a membership drive.
• To collect funds.
• To review activities of the month.
MINUTES OF MEETING
Minutes are the official record of the proceedings of a meeting. All organizations,
whether commercial or social, attach great importance to maintaining a proper record of the
business transacted at their various meetings.
Meaning: The official record of proceedings of the meetings is known as ‘minutes’. Minutes
are the systematic record of when and where a meeting was held who chaired the meeting who
were present at the meeting, who were not present, what decisions were taken at the meeting,
resolutions passed, objections and so on.
Minutes are of two types:
1. Minutes of resolution: only the resolutions are recorded. No reference is made to
discussions or other details.
2. Minutes of narration: It is similar to a brief report. A brief account of discussion, who
moved, who seconded and the voting pattern is also recorded. They can be recorded in
‘Block’ form, one after the other or by way of continuous paragraphs.
MEMORANDUM
The term Memorandum (Memos) has often been misunderstood as a part of disciplinary
proceedings. Far from it, the word at best means a note or record for future use. It is a useful
mode of informal communication. A memorandum (memorandums or memoranda in plural)
plays a convenient and flexible role. While much of inter and infra-office communication is
being done over the phone, memorandums are preferred when one needs to convey information
in writing. A memorandum is widely known by its abbreviated form, memo. It serves as a
warning to the person to whom it is issued, inviting his attention to the acts of omission or
commission. It is used internally. It is a short statement of an instruction to be done or acted
upon.
A memorandum (known as ‘memo’ in short from) is by definition, “a written statement
that prepare specifically for a person or committee in order to give them information about a
particular matter”. It takes the form of “a short official note that you write to a person or to
several people, especially to people with whom you work”. Memos have the basic purpose of
internal communication to circulate notes, information, circulars, orders etc.
Elements of an Effective Memo: An effective memo:
• Grabs the reader's attention
• Provides information, makes a recommendation, or asks for action
• Supports your position or explains benefits to reader
• Mentions next steps and deadlines
Characteristics of Memorandum
aA short written communication sent to members within an organization.
bIt may be used for recording and confirming an oral agreement, to communicate policy
or procedure to one or many people and place information on record.
c It is written in a formal style.
d Used for routine day-to-day exchange of information.
e It has the organization’s name printed on the top.
f Helps in fixing accountabilities of the sender and the receiver.
g Provides the receiver time to think and act.
h It may be for the attention of a single person or all, in the form of a circular.
Types of Memos
There are four types of memos you might have to write, each with its own organizational
format: information, problem-solving, persuasion, and internal memo proposal.
1 Information Memo
• Used to deliver or request information or assistance
• First paragraph provides main idea
• Second paragraph expands on the details
• Third paragraph outlines the action required
2 Problem-solving Memo
• Suggests a specific action to improve a situation
• First paragraph states the problem
• Second paragraph analyzes the problem
• Third paragraph makes a recommendation
• When making a recommendation, include not only the positive details but also the
drawbacks and diffuse them yourself
3 Persuasion Memo
• Used to encourage the reader to undertake an action he or she doesn't have to take
• First paragraph begins with an agreeable point
• Second paragraph introduces the idea
• Third paragraph states benefits to the reader
• Fourth paragraph outlines the action required
• Fifth paragraph ends with a call to action
4 Internal Memo Proposal
• Used to convey suggestions to senior management
• First paragraph states reason for writing
• Second paragraph outlines present situation and states writer's proposal
• Third paragraph describes advantage(s)
• Fourth paragraph mentions and diffuses disadvantage(s)
• Fifth paragraph ends with a call to action
Parts of Memo: All memos consist of two sections: the heading and the body. The heading
indicates who is writing to whom, when, and why. The heading should include the following
parts:
1. To
• lists the names of everyone who will receive the memo includes the first and last name
and titles or departments of the recipients for formal memos, memos to superiors, or if
everyone on the list does not know each other
• if all recipients know each other's names and positions, use just the first initial and last
name of each recipient list"
• at the end of the memo add the word "Distribution" and then list the names of the can
be listed alphabetically or by rank
• if it is not possible to fit all the names in the To: area, use the phrase "See distribution
people who will receive a copy of the memo
• arrange the names by rank, department or alphabetically
2. From
• lists the name of the writer(s) in the same way as the name(s) of the recipient(s)
• there is no complimentary close or signature line, but authors initial their names on the
• From: line
3. Date
• lists the month, date, and year the memo was written
• do not use abbreviations
• avoid using numbers for months and days
4. Re: or Subject
• indicates the main subject of the letter
• should be as specific and concise as possible
5. Cc or c
• lists those readers who should have a copy of the memo for their information or
• reference but are not expected to carry out the same action as the recipients listed in the
To: line
• "cc" can also be placed at the end of the memo below the distribution list (if used)
Differences between Memos and Letters:
Letters Memos
OFFICE ORDER
Office order is a means of downward communication. It carries commands and
instructions which people working at lower levels are bound to accept. Orders are issued by
superiors to their subordinates. Office orders are used to communicate messages related to
posting, promotion, transfer, suspension, termination of services, granting\withdrawing certain
privileges, imposing certain restrictions, disciplinary proceedings, new guidelines, rules,
procedures, assignment, of work and so on.
EMAIL
“Electronic mail” – or “e-mail,” as it is commonly called – is the process of sending or
receiving a computer file or message by computer modem over telephone wires to a pre-
selected “mail box” or “address” on another computer.
E-mail can also be sent automatically to a large number of electronic addresses via
mailing lists (through ‘mail- merge’ option). E-mail messages can range from the simplest
correspondence to business presentations, engineering blueprints, book chapters, or detailed
contracts. Graphics, files of artwork or photography, can be transmitted via this technology as
well, though text messages comprise the vast majority of e-mail transmissions. Today, e-mail
stands as a central component of business communication, both within businesses and between
business enterprises, because of the many advantages that it offers over regular mail in terms
of efficiency, speed, and 24-hour availability. These characteristics have made electronic mail
a truly ubiquitous presence across the globe.
Features of Email
1 Electronic: It is an electronic mode of message transmission as it is sent using HTML
(Hyper Text Markup Language) – the computer code used to create web pages
2 Cost-Effective: It is one of the cost-effective modes of fast communication. Today with
the advent of smart-phones, communicating through emails has become even more cost-
effective.
3 Packages: Packages like ‘Messenger’ and ‘Outlook’ help us compose new mails or
forward the received ones to one or all of the people whose email addresses are stored in
the ‘Address Box’. They allow us to change font, sizes and color of the text; highlight,
delete, store or save; align center or justify the text; italicize, bold, underline or even print
what we write or receive as email.
4 Interface: An interface between email program and word processing program allows us
to cut, copy, paste material from one place to the other.
5 Attachments: The ‘Attach’ option allows us to share documents, worksheets,
presentations, pictures and videos along with the mails.
6 Spam: Unsolicited or Junk mails can be filtered by using the ‘spam’ option which forbids
unwanted mails to enter your inbox. These unwanted mails may be advertisements, job
offers, competition forms etc which one does not want to receive frequently.
7 Signature: We can customize our signature as we want it to appear in the complimentary
closure of every email. Once you add your signature it automatically appears at the end of
every mail that you compose. One need not write the name, designation, contact no etc
again and again.
8 Search: The search option helps us to locate old email communications. This can be
achieved by typing the sender’s name in the search box and click the search button. It will
reflect all mails containing the name so typed.
Advantages of Email:
i. Managing Email is Easy: You can manage all your correspondence on screen and so can
your customers. Your proposal can be answered, revised, stored, and sent to others, all
without reams of paper involved.
ii. Email is Fast: Mail is delivered instantly, from your office to anywhere in the world. No
other method of delivery can provide this service. Timely buying and selling decisions can
be made in a heartbeat.
iii. Email is Inexpensive: Compared to telephone calls, faxes, or overnight courier service,
Email is less expensive.
iv. Email is convenient: As one need not find an envelope, buy a stamp or look for a mail box
to send an e-mail. All can be done at home, any hour of the day.
v. Email helps to stay in touch: E-mail is great for contacting people who are perpetually on
the phone or out of office. It also makes it easier to deal with people in different time zones.
vi. Email helps in sending people files: An e-mail message could be sent along with
attachments like text documents, pictures, sound clips and program files.
vii. Email is Easy to Filter: The subject line on an Email makes it easy to prioritize messages.
The reader can identify critical correspondence quickly and deal with it immediately. Unlike
regular mail which needs to be opened and reviewed, or voice mail which requires you to
either listen to or scan all your messages for those that require immediate attention.
viii. Transmission is Secure and Reliable: The level of security in transmitting Email messages
is very high, and the industry continues to strive to develop even tighter security levels.
Email is private. Often telephone and fax messages are not. If the address information is
correct, rarely does an Email go astray. Fax machines can be out of order or out of paper
and this prevents an important message from being delivered in a timely manner.
ix. Email has been credited for increased efficiency, business readiness, and a host of other
advantages tied to increased productivity.
Disadvantages of Email:
i. Time Consuming: While writing an email takes less time that it takes to print a letter and
mail it off, the ease of sending an email also means the average person receives more
correspondence electronically than they would if all correspondence was by postal mail.
Sometimes the message is better communicated over the telephone or directly. Organizing
and reading through emails can also eat up a great deal of time and prove a hindrance on
worker productivity.
ii. Security: Sensitive information can be easily shared and distributed within a business
through email. It does not matter if the email is sent accidentally or deliberately, the harm
is the same. Moreover, when someone hands you a business letter, you are the only person
that receives that letter. An email can be intercepted by a hacker or go to an incorrect email
address and wind up in someone else’s inbox. Your sensitive information and messages are
very accessible to hackers and even unsuspecting recipients when you use email.
iii. Impersonal Communication: While email can be faster, the meaning of the message is
often lost in the text. It can make customers or employees forget there are people involved
in the transaction, which can affect customer service. Since email recipients cannot see
each other, the emails do not have any voice inflection or emotion that can help with proper
interpretation.
iv. Misunderstanding: Pronouns and popular jargon can lead to conflict in emails. In
addition, email is filled with abbreviations and short descriptions, which can often be
misunderstood and/or interpreted the wrong way.
v. Vulnerability (weakness / openness): It would take a manual effort on the part of someone
to access all of your important printed documents and destroy them. But all of your emails
and important information can be lost with a simple hard-drive crash. If you store your
email information on another server, then you could lose your data if that site goes down
or out of business.
vi. Email cannot be considered a confidential mode of communication.
vii. Email should not be considered as a replacement for direct, face-to-face communication.
viii. Email cannot be relied in case of emergency messages as the receiver may read it at their
own convenient time.
ix. Email depends on the internet connectivity which can get disturbed or disconnected due to
various reasons.
VIDEO CONFERENCING
A video-conference or video-teleconference (VTC) is a set of interactive
telecommunication technologies, which allow two or more locations to interact via two-way
video and audio transmissions simultaneously. It has also been called ‘visual collaboration’
and is a type of groupware.
Videoconferencing uses telecommunications of audio and video to bring people at
different sites together for a meeting. This can be as simple as a conversation between two
people in private offices (point-to-point) or involve several sites (multi-point) with more than
one person in large rooms at different sites. Besides the audio and visual transmission of
meeting activities, videoconferencing can be used to share documents, computer-displayed
information, and whiteboards.
The core technology used in a video teleconference (VTC) system is digital compression
of audio and video streams in real time. The hardware or software that performs compression
is called a codec (coder/decoder).
The components required for a VTC system include:
➢ Video input: Video camera or webcam
➢ Video output: Computer monitor, television or projector.
➢ Audio input: Microphones, CD/DVD player, cassette player, or any other source of
PreAmp audio outlet.
➢ Audio output: Usually loudspeakers associated with the display device or telephone.
➢ Data transfer: Analog or digital telephone network, LAN, or Internet.
Videoconferencing provides students with the opportunity to learn by participating in a
2-way communication platform. Furthermore, teachers and lectures from all over the world can
be brought to classes in remote or otherwise isolated places. Students from diverse
communities and backgrounds can come together to learn about one another. Students are able
to explore, communicate, analyze and share information and ideas with one another. Through
videoconferencing students can visit another part of the world to speak with others, visit a zoo,
a museum and so on, to learn. These “virtual field trips” can bring opportunities to children,
especially those in geographically isolated locations, or the economically disadvantaged. Small
schools can use this technology to pool resources and teach course which could not otherwise
be offered.
Video-conferencing is a very useful technology for telemedicine and telenursing
applications such as diagnosis, consulting, transmission of medical images, etc.., in real time
in countries where this is legal. Using VTC, patients may contract nurses and physicians in
emergency or routine situations, physicians and other paramedical professionals can discuss
cases across large distances. Rural areas can use this technology for diagnostic purposes, thus
saving lives and making more efficient use of health care money. Special peripherals such as
microscopes fitted with digital cameras, video endoscopes, medical ultrasound imaging
devices, otoscopes, etc.., can be used in conjunction with VTC equipment to transmit data about
a patient.
Videoconferencing can enable individuals in faraway places to have meetings on short
notice. Time and money that used to be spent in travelling can be used to have short meeting.
Videoconferencing is now being introduced to online networking websites, in order to help
businesses form profitable relationships quickly and efficiently without leaving their place of
work. This has been leveraged by banks to connect busy banking professionals with customer
in various locations using video banking technology.
MULTIPOINT VIDEOCONFERENCING
Simultaneous videoconferencing among three or more remote points is possible by means
of a Multipoint Control Unit (MCU). Through MCU, we can arrange videoconferencing for
multiple parties at the same time:
Thus video conferencing can be extremely useful to:
1. Multinational companies.
2. International Institutions such as I.M.F, A.D.B, etc. and
3. International leaders.
They can ‘meet’ each other without travelling to distant places and solve their problems
comfortably and conveniently.
Advantages of modern forms of communication:
1. They can update their knowledge on any matter.
2. They can get used to the basic functions of computers.
3. Computer literacy can be an added advantage for studying and writing examinations.
4. They can learn to maintain information related to their friends, relatives and others in an
orderly and modern form.
5. Word processing can be very useful in sending neat and impressive letters.
6. Internet facility can be useful for admissions to others universities. It can also be used for
online job interviews.
INTERNET
Meaning: The Internet is a massive network of networks - a networking infrastructure. It
connects millions of computers together globally, forming a network in which any computer
can communicate with any other computer as long as they are both connected to the Internet.
Information that travels over the Internet does so via a variety of languages known as protocols.
Functioning of Internet:
➢ Each computer on the Internet has unique address.
➢ When data is transferred the computer uses Transmission Control Protocol (TCP) to divide
data into small packets.
➢ Internet Protocol (IP) shifts the packets across the Internet, by a convenient route and then
TCP reassembles the data.
➢ Any computer that can do TCP/IP can be connected to the Internet.
Connecting to the Internet: Four things are needed to connect to the internet, they are:
➢ A Computer: The simplest option is to use a Persona Computer running windows
operating system.
➢ A physical connection: A physical connection between the computer and the Internet is
essential and it is provided in the form of Internet cables, power lines and phone cables. A
specific device used for physical connection is the modern, which enables computers to
communicate with each other via a telephone line.
➢ An Internet Service Provider: ISPs make it possible for ordinary people to access the
internet form their bedrooms. The Service providers have computers permanently wired
up to the Internet and to a large number of moderns. Once an internet account is opened,
the personal modern establishes a connection with one of the ISP’s modern for Internet
access.
➢ Internet Software: Internet software programs are necessary to send and receive
information. It is provided by the service provider in the form of CDs.
Usefulness of the Internet:
➢ The Internet helps people to stay in touch. It is one of the easiest, fastest and cheapest ways
to keep in touch.
➢ The Internet helps people from different background to interact on a common platform.
The individuals who share similar interests can chat through the Internet from any part of
the world.
➢ Internet serves as a pool of information, any news from around the world could be viewed
through the Internet. One can look up phone numbers, directors, news, etc..,
➢ The Internet provides a lot of recreational activities like games, stories, movies, etc..,
➢ The Internet is accessible 24 hours a day throughout the year. It provides latest
information.
➢ The Internet helps in calculations, like currency conversion, tax returns, etc..,
➢ The Internet clarifies doubts and resolves arguments through useful websites and blogs.
➢ Internet is used to promote business. A visual picture of the business could be provided
through attractive websites.