Date: 1st October 2023
The Deputy Director
Foreign Exchange Investment Department (FEID)
Bangladesh Bank
Head office, Motijeel C/A, Dhaka-1000, Bangladesh.
Through: HSBC Bank Limited, Management Office, Level 4, Shanta Western Tower 186 Bir Uttam Mir Shawkat Ali Road Tejgaon Industrial Area, Dhaka 1208
Subject: Seeking opinion for the surplus amount of Share Capital Purchase Money (Equity Investment).
Dear Sir,
This is Kotaro Takeuchi, Managing Director of NICCA BANGLADESH CO., LTD. I would like to inform you that NICCA BANGLADESH CO., LTD. is going to establish a Private Limited Company and set up a factory in the Bangladesh Special Economic Zone (BSEZ).
In order to form the Private Limited Company “NICCA BANGLADESH CO., LTD.” (having total paid-up capital BDT. 540,000,000.00; BDT 10.00 per share) the shareholders namely NICCA CHEMICAL CO., LTD. (having 53,999,000 no. of shares) and HONG KONG NICCA CHEMICAL CO., LTD. (having 1000 no. of shares) send remittance to purchase share capital USD 4,935,000.00 and USD 100.00 respectively. After converting the foreign currency into Bangladesh Taka the amount stands for BDT 540,382,500.00 and BDT 10950.00.
After the conversion, we have some surplus amount remaining for NICCA CHEMICAL CO., LTD. (BDT 392,500.00) and HONG KONG NICCA CHEMICAL CO., LTD. (BDT 950.00).
We know that as per the regulations of Bangladesh, the surplus amount needs to be remitted back or allotted as share capital after a certain period. But due to some financial limitations, it is not possible to remit back to Japan and Hong Kong. On the other hand, there will be an imbalance in the shareholding position if we allot the surplus amount as share capital.
To avoid the above issue we want to hold a Board meeting and recognize the surplus amount as other income. In this circumstance, we need your valuable opinion about this matter.
Sincerely,
🗸
_____________
Kotaro Takeuchi
Managing Director
NICCA BANGLADESH CO., LTD.
Attachment:
MOA & AOA
Encashment Certificate