lenny apparels 2011

7/29/2019 Lenny Apparels 2011

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31 December 31 December

2011 2009

Note Taka Taka

SOURCES OF FUNDS

Share Capital 4

Equivalent USD 28,570 @ BDT 70.00 2,000,000 2,000,000

Shareholders' equity 2,000,000.00 2,000,000

LOAN FUNDS 5

Must Garment Corporation Limited Hong Kong

Loan account - non-interest bearing payable on demand

Equivalent USD 702,600 @ BDT 70.00 174,420,159 49,182,039

CAPITAL EMPLOYED 176,420,159 51,182,039

APPLICATION OF FUNDS

Property, plant and equipment

Construction in progress 6 180,841,117 48,235,438

Preliminary expenses 7 534,940 534,940

CURRENT ASSETS

Advances, deposits and prepayments 8 926,800 926,800

Cash and cash equivalents 9 4,266,821 1,717,891

5,193,621 2,644,691

LESS: CURRENT LIABILITIES AND PROVISIONS

Creditors and Accruals 10 10,149,519 233,030

10,149,519 233,030

NET CURRENT ASSETS/(LIABILITIES) (4,955,898) 2,411,661

NET ASSETS 176,420,159 51,182,039

CONTINGENT LIABILITIES & COMMITMENTS -0 -

Managing Director Director

Dhaka, November 2010 Chartered Accountants

LENNY APPARELS LIMITED

STATEMENT OF FINANCIAL POSITION

of 5

Auditors' report to the shareholders

See annexed report of date

These Financial Statements should be read in conjunction with the annexed notes

AS AT 31 MARCH 2009



Note Taka Taka

Operating Activities

Changes in working capital

Increase in advances, deposits and prepayments 8 - (926,800)

Increase in creditors and accruals 9,916,489 233,030

Net cash inflow from operating activities 9,916,489 (693,770)

Investing activities

Construction in progress 6 (132,605,679) (48,235,438) Preliminary expenses 7 - (534,940)

(132,605,679) (48,770,378)

Financing activities

Share Capital 4 - 2,000,000

Loan account - non-interest bearing payable on demand 5 125,238,120 49,182,039

125,238,120 51,182,039

Net cash Inflow/ (Outflow) 2,548,930 1,717,891

Cash and bank balances

On 01 January 2010 1,717,891 -

At 31 March 2011 9 4,266,821 1,717,891

Net Increase in cash and cash equivalents 2,548,930 1,717,891

-0.60

Managing Director Director

of 5

This Statement should be read in conjunction with the annexed notes.


STATEMENT OF CASH FLOWS

FOR THE PERIOD FROM 01 JANUARY 2010 TO 31 MARCH 2011

From 05 August

2008 to 31December 2009

From 01 January

2010 to 31 March2011



1 BACKGROUND

2 NATURE OF BUSINESS

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Accounting basis

b. Pre-operating expenses and preliminary expenses

c. Property, plant and equipment - construction in progress

d. Foreign currency translations and transactions

Company's functional and presentation currency.

These are recorded in the books at historical cost. All directly attributable costs of construction are

capitalised under the relevant headings of assets.

These Financial Statements have been prepared on a going concern basis under the historical cost

convention as well as considering Bangladesh Accounting Standards (BAS) and Bangladesh Financial

Reporting Standards (BFRS) and provisions of the Companies Act, 1994 and other applicable laws

and regulations. Wherever appropriate, the policies are explained in the succeeding paragraphs.

of 5

In order to comply with the requirements of the local Companies Act 1994, certain expenditure relating

to the incorporation of the Company are capitalised under the heading "Preliminary expenses". These

Preliminary expenses shall be amortised on a straight line method over a period of five years (60months) commencing from the date of starting the commercial production.

Share capital, loan funds received from Must Garments Corporation Limited, foreign currency balance

with banks at 31 December 2009 in US dollars have been translated into Bangladesh Taka currency at

the rate of Tk 70.00 = 1 US dollar.


NOTES TO THE FINANCIAL STATEMENTS

Lenny Apparels Limited ("the Company") was incorporated in Dhaka, Bangladesh as a private limited

company on 05 August 2008 and not yet went into the commercial production. The Company is owned by

100% foreign investment and intending to run its operation through establishing a factory in Dhaka Export

Processing Zone (DEPZ).

The Company's target is to set up specialised Garments Industry with linkage (washing and embroidery)

facilities. During the period, the Company has not started the commercial operation as the main activities

were to construct the factory building and related machineries.


The financial statements of the Company are presented in Bangladesh Taka (BDT) which is the



31 March

2011

4 SHARE CAPITAL Taka

a. Authorized

35,000 ordinary shares of Tk 10,000 each 350,000,000

b. Issued, subscribed and paid up

200 fully paid up ordinary shares of

Tk 10,000 each issued for cash 2,000,000

2,000,000

c. The composition of fully paid up ordinary share capital of the Company is as follows:

Name of the shareholders No. of

shares

Must Garment Corporation Ltd, Hongkong 100 1,000,000

Lazare Co. Inc, British Virgin Island 100 1,000,000

2,000 2,000,000

5 LOAN FUNDS- NON INTEREST-BEARING PAYABLE ON DEMAND

MUST GARMENT CORPORATION LIMITED, HONGKONG

Opening Balance 49,182,000

Add: Increased During the year 125,238,159

174,420,159

6 Property, plant and equipment

Construction in progress

(A)

Name of the contractors/description of expenses

Magnum Engineering 100,175,197

Heidelberg Cement 18,134,092

BSRM Steel 39,239,690

Energypac Power Generation Ltd 5,275,000

Cables 2,761,500

Civil construction and other related costs 9,998,870

Lease rent 3,620,604

Bank charges 56,460

Utility charges 930,575

Cost for moving items from Comilla EPZ 50,000

180,241,988

Foreign exchange translation difference 599,129

180,841,117

(B)

7 PRELIMINARY EXPENSES

Legal and professional expenses 168,210

Registration and related expenses 366,730

534,940

8 ADVANCES, DEPOSITS AND PREPAYMENTS






31 March

2009

9 CASH AND CASH EQUIVALENTS Taka

On Current Accounts with the Hong Kong & Shanghai

Banking Corporation Limited (HSBC)

USD Account (51,460, 2009: $21,484 @ BDT 70) 3,602,172

BDT Account 664,649

4,266,821

10 CREDITORS AND ACCRUALS

Magnum Engineering & Constructions Ltd 4,408,451

Energypac Power Generation Ltd 5,275,000

Lenny Fashions Ltd 466,068

Others -

10,149,519

Director Managing Director



FOR THE PERIOD FROM 5 AUGUST 2008 TO 31 DECEMBER 2009



Cash in hand

Stamps in hand

At banks on current accounts with:

Convertible Account

Non-convertible Account

The Hong Kong & Shanghai Banking Corporation Limited

Page 7 of 15



25-Aug-09 Cement Cement Company Draft - K808768

16-Sep-09 Cement Cement Company Draft - K899055

8-Oct-09 Cement Cement Company Draft - K899694

28-Oct-09 Cement Cement Company

3-Nov-09 Cement Cement Company

25-Nov-09 Cement Cement Company- stage-2 Installment 1 Draft - 9013426-Dec-09 Cement Cement Company- stage-2 a Draft - K901462

21-Dec-09 Cement Cement Company - Stage 2 Draft - K901855

23-Dec-09 Cement Cement Company - Stage 2 Draft - K901918

14-Feb-10 Cement Cement Company Draft-K000974

3-May-10 Stage-4 Cement Cement Company Draft-K003736

27-Jun-10 Stage-5 Cement Cement Company Draft-DAK005070

19-Jul-10 Stage-5 Cement Scan Cement Stage 5 Transfer Letter

5-Sep-10 Cement Scan Cement Stage 5 Draft-

5-Sep-10 Cement Lenny Fashions (600 Bags) Transfer Letter

24-Oct-10 Cement Scan Cement Draft-

20-Mar-11 Cement Scan Cement Draft-

US$

BDT



6,270

3,344

8,360

11,704

10,032

1,672 8,151

1,672

8,151

8,360

34,640

15,588

10,560

35,032

3,122

36,000

56,400

259,058

18,134,092



25-Aug-09 Steel BSRM - Steel 8-Sep-09

16-Sep-09 Steel BSRM - Steel 29-Sep-09

8-Oct-09 Steel BSRM - Steel 11-Oct-09

19-Nov-09 Steel BSRM - Steel 2 a

6-Dec-09 Steel BSRM - Steel 2 b 6-Dec-0929-Dec-09 Steel BSRM Steel -Stage2

5-Jan-10 Steel BSRM Steel - Stage2

9-Jan-10 Steel BSRM Steel - Stage 4a

13-Jan-10 Steel BSRM Steel - Stage 4b

24-Jan-10 Steel BSRM Steel - Stage 4C - advance payment

14-Feb-10 Stage-4 Steel BSRM Steel -Stage 4d

18-Mar-10 Steel BSRM Steel -Stage 4e

16-May-10 Stage-5 1 Steel BSRM Steel

19-Jul-10 Stage-5 Steel BSRM Steel stage 5 -2nd lot

19-Jul-10 Stage-5 Steel BSRM Steel stage 5 -3nd lot

5-Sep-10 Steel BSRM Steel stage

5-Sep-10 Steel BSRM Steel stage

7-Oct-10 Stage -3 Steel BSRM Steel stage

14-Oct-10 Stage -3 Steel BSRM Steel stage

14-Dec-10 Steel BSRM Steel stage

9-Jan-11 Steel BSRM Steel stage

31-Mar-11 Steel BSRM Steel stage



US$

Draft - K808769 22,572

Draft - K899044 22,212

Draft - K899698 21,163

24,680

Draft - K901461 24,680 Draft - K901919 25,000

Draft-K000033 25,625

Draft-K000175 22,977

Draft-K000278 22,977

Draft-K000598 23,115

18,630

Draft- 24,081

Transfer Letter 26,280










560,567

BDT 39,239,690



12-Jan-10 Transfer Letter 2,568,378

13-Jan-10 Paid to Magnum 863717 2,442,803

14-Jan-10 Excise Duty 1,000

20-Jan-10 Bangladesh Bank 863718 101,783


28-Jan-10 Paid to Magnum 863745 2,398,702 1-Feb-10 Utility Bill 863743 44,100

4-Feb-10 Bangladesh Bank 863742 101,783

14-Feb-10 Transfer Letter 2,860,958

18-Feb-10 Paid to Magnum 863747 2,400,803

18-Feb-10 Green Delta Insurance Co. 863746 297,500

14-Mar-10 Bangladesh Bank 863748 101,783

18-Mar-10 Transfer Letter 1,867,109

21-Mar-10 Paid to Magnum 745701 1,751,441

23-Mar-10 Utility Bill 745703 37,870


13-Apr-10 Transfer Letter 863749 42,000

18-Apr-10 Transfer Letter 2,549,419

19-Apr-10 Paid to Magnum 745704 2,385,963

25-Apr-10 Bangladesh Bank 745705 101,783

25-Apr-10 Utility Bill 745706 56,840

30-Apr-10 Transfer Letter 1,959,444

3-May-10 Paid to Magnum 745707 1,789,310

13-May-10 Transfer Letter 2,456,220

13-May-10 Paid to Magnum 745709 2,388,483

16-May-10 Utility Bill 745711 54,320

20-May-10 Bangladesh Bank 745708 74,555 26-May-10 Bangladesh Bank 745710 101,783

30-May-10 Transfer Letter 2,551,423

31-May-10 Transfer Letter 745712 2,442,803

3-Jun-10 Transfer Letter 2,553,002

7-Jun-10 Bangladesh Bank 745713 101,783

9-Jun-10 Paid to Magnum 745714 2,442,803

13-Jun-10 Transfer Letter 2,549,659

15-Jun-10 Sweet & C & F 745716 16,762

16-Jun-10 Utility Bill 745719 66,920

17-Jun-10 Paid to Magnum 745717 2,375,883



19-Jul-10 Transfer Letter 2,557,571

22-Jul-10 Paid to Magnum 745720 2,393,873

22-Jul-10 Utility Bill 745722 48,930

22-Jul-10 Bangladesh Bank 745721 101,783

16-Aug-10 Transfer Letter 2,338,656



18-Aug-10 Paid to Magnum 745723 2,393,243

19-Aug-10 Bangladesh Bank 745724 101,783

19-Aug-10 Utility Bill 745725 49,560

5-Sep-10 Transfer Letter 2,559,447

5-Sep-10 Paid to Magnum 745726 2,442,803

5-Sep-10 Bangladesh Bank 745727 101,783 5-Sep-10 Transfer Letter 2,558,592


5-Sep-10 Bangladesh Bank 745729 101,783

30-Sep-10 Transfer Letter 1,728,622


13-Oct-10 Transfer Letter 864,276

13-Oct-10 Paid to Magnum 745734 742,803

13-Oct-10 Bangladesh Bank 745735 101,783

13-Oct-10 Transfer Letter 2,585,227

13-Oct-10 Paid to Magnum 745730 2,388,623


13-Oct-10 Utility Bill 745732 54,180

13-Oct-10 Bank Charges 863


22-Oct-10 Paid to Magnum 745736 2,389,883


22-Oct-10 Utility Bill 745738 52,920


1-Nov-10 Paid to Magnum 745739 2,442,803

10-Nov-10 Bangladesh Bank 745740 101,783

8-Nov-10 Transfer Letter 2,591,003 8-Nov-10 Transfer Letter 2,591,003





14-Nov-10 Cas Withdrawn 745741 10,000

14-Nov-10 Transfer Letter 2,591,913



14-Nov-10 Utility Bill 745748 45,290

5-Dec-10 Transfer Letter 2,597,690

5-Dec-10 Paid to Magnum 196201 2,442,803

5-Dec-10 Bangladesh Bank 196202 101,783

13-Dec-10 Transfer Letter 2,600,290

14-Dec-10 Paid to Magnum 196204 2,442,803

14-Dec-10 Bangladesh Bank 196205 101,783

23-Dec-10 Cas Withdrawn 196203 150,000




5-Jan-11 Paid to Magnum 745749 1,789,310


19-Jan-11 Cas Withdrawn 196206 50,000

19-Jan-11 Excise Duty 1,000

24-Jan-11 Transfer Letter 2,669,031 24-Jan-11 Paid to Magnum 196207 2,442,803


24-Jan-11 Paid to Magnum 196209 204,474


15-Feb-11 Transfer Letter 2,687,585

15-Feb-11 Paid to Magnum 196211 2,442,803

15-Feb-11 Bangladesh Bank 196212 101,783




22-Mar-11 Cas Withdraw 196218 50,000

29-Mar-11 Cas Withdraw 196219 25,000




31-Mar-11 Cash for shutter gate -adv 50% 196222 20,000




Paid 72,000,491

Previous 18065111Payable 4408451

Add Tiles 4874398.9

Lift 1143870

Less Green Delta Insurance Co. (297,500)

Sweet & C & F 745716 (16,762)

Excise Duty & Bank charge (2,863)

100,175,197

99996542

178,655

1039443



72761010



Trans amount ex loss total

72458558 302452 72761010

0

0



10-Jan-11 CABLES BRB CABLES Transfer Letter 39,450

2761500



Date Stage Instalment Account head

8-Jan-08 Structure & other Civil Construction 1st Civil Construction Exp.

8-Jan-08 Structure & other Civil Construction Stamp Duty(BB)

19-Feb-08 Structure & other Civil Construction 2nd Civil Construction Exp.

29-Apr-08 Structure & other Civil Construction 3rd Civil Construction Exp.

27-May-08 Structure & other Civil Construction 4th Civil Construction Exp.

10-Oct-08 Prelemenary Stage Prelemenary Exp.

10-Oct-08 Prelemenary Stage Prelemenary Exp.

25-Aug-09 Consultant



Description Paid

USD BDT

1st installment against cost of structure & others civil construction 31,857 2,229,990.00

Stamp duty to Bangladesh Bank (BDT 140,000.00) 2,056 143,920.00

2nd installment against cost of structure & others civil construction 31,857 2,229,990.00 3rd installment against cost of structure & others civil construction 31,857 2,229,990.00

Final installment against cost of structure & others civil construction 31,857 2,229,990.00

Soil test expenses 1,786 125,020.00

Map photocopy charge 25 1,750.00

Architect - Iyer & Mahesh 11,546 808,220.00

Upto 31 December 2009 142,841 9,998,870



Date Stage Account head Description

15-Apr-08 Lease rent Lease rent (11th Dec07 to June08)

8-Jul-08 Lease rent Lease rent (July08 to September08)

28-Oct-08 Prelemenary Stage Lease rent Quarterly lease rent ($4,364.78) (03rd Sep-Dec08)

13-Jan-09 Prelemenary Stage Lease rent Factory Lease rent (Jan '09 - Mar '09) $3,329.0614-Apr-09 Prelemenary Stage Lease rent Factory Lease rent (Ap l'09 - Jun '09) $3,329.06

14-Jul-09 Prelemenary Stage Lease rent Factory Lease rent (Jul '09 - Sep '09) $3,329.06

1-Oct-09 Prelemenary Stage Lease rent Factory Lease rent (Oct '09 - Dec '09) $3,329.06

1-Jan-09 Prelemenary Stage Lease rent Factory Lease rent (Jan '10 - Mar '10) $3,329.06

Balance as on 13.12.2009

5-Sep-10 BEPZA Lease Rentals

14-Oct-10 BEPZA Lease Rentals

17-Jan-11 BEPZA Lease Rentals

payable to Lenny Apparels for lease Rent

Total Lease rent paid upto 31.03.2011



Amount US$ Amount TK

Paid 7,410

Paid 3,329

Paid 4,365

Paid 3,329 Paid 3,329

Paid 3,329

Paid 3,329

Paid 3,329

Paid 31,749 2222416

Due 3329 233030

35,078 2455446

Paid

6658 3,329

3,329

3,329

6,658

16,645 1165158.4

3620604.4



Date Description Reference Paid

USD

25-Jan-09 29

3-Mar-10 Others Bank Charge Bank Charge 10


7-Apr-10 Stage-4 Others Bank Charge Bank Charge 26

3-May-10 Others Bank Charge Bank Charge 5



2-Sep-10 Others Bank Charge on Remittance bank Charges 31

5-Sep-10 Others Bank Charge Bank Charge 5




6-Oct-10 Others Bank Charge Bank Charge 40






1-Nov-10 Others Bank Charge Bank Charge 31



25-Nov-10 Others Bank Charge Bank Charge 30.980

20-Dec-10 Others Bank Charge Bank Charge

20-Dec-10 Others Bank Charge Bank Charge 5

11-Jan-11 Others Bank Charge Bank Charge 5

13-Jan-11 Others EXCISE DUTY 70

17-Jan-11 Others Bank Charge Bank Charge 5

22-Feb-11 Others Bank Charge Bank Charge 26




669

BDT 46807.6

Add 2862.5

Previous year 6790

Total 56460.1



Date Description Reference Paid

USD

5-Sep-10 Utility-Magnum Transfer Letter 708

19-Sep-10 Bepza Utility Draft- 774

14-Oct-10 Utility-Magnum Draft - 756

11-Nov-10 Utility-Magnum Draft - 647

20-Dec-10 Utility-Magnum Draft - 761

17-Jan-11 Utility-Magnum Draft - 760

20-Feb-11 Utility-Magnum Draft - 2,752

20-Mar-11 Utility-Magnum Draft - 1,778

8,936

BDT 625520

Previous 305055

930575



5 LOAN FUNDS- NON INTEREST-BEARING PAYABLE ON DEMAND

MUST GARMENT CORPORATION LIMITED, HONGKONG

Increased During the year9-Jan-10 Remittance reced from MGCL (Stage 4a)

20-Jan-10 Remittance reced from MGCL (Stage 4B) HK1190100U1TU8GT

7-Feb-10 Stage-4 Remittance reced from MGCL(Stage 4C) HK1040200P3AIGG9

13-Mar-10 Remittance reced from MGCL(Stage 4 & 10d) HK1110300V6HQJNL

7-Apr-10 Stage-4 Remittance reced from MGCL(Stage 4 & 10e) HK1070400K8YM3E4

5-May-10 Stage-4 Remittance reced from MGCL HK1030500KBC7YFE

13-May-10 Stage-5 Remittance reced from MGCL HK1110500PC2JYPW

18-Jul-10 Stage-5 Remittance reced from MGCL

2-Sep-10 Stage-6 Remittance reced from MGCL

30-Sep-10 Remittance reced from MGCL

24-Oct-10 Remittance reced from MGCL LIFT

1-Nov-10 Remittance reced from MGCL

25-Nov-10 Remittance reced from MGCL

16-Jan-11 Remittance reced from MGCL

22-Feb-11 Remittance reced from MGCL

18-Mar-11 Remittance reced from MGCL



US$ Taka

Stage

63173 4422110

63173 4422110 41,670 2,866,896

67423 4719610 55.26

63173 4422110 15,588 2,549,659

63173 4422110 Stage

63173 4422110

127846 8949205

127846 8949205

234000 16380000

265579 18590530

16341 1143870

240378 16826460

104455 7311850

39450 2761500

50000 3500000

199934 13995380

1789116.6 125238159



14-Mar-10 Magnum - Stage 10 - Ins 0745701 1,751,441

17-Apr-10 Fund Received from FC account USD 3 2,549,419

29-Apr-10 Fund Received from FC account USD 2 1,956,360



726,254

3,163,249

2,575,023

lenny apparels 2011

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