Content
Letter of Transmittal
04
Notice of the 13th Annual General Meeting
05
Corporate Information
06
Board of Directors
07
Brief Profile of the Directors
08
Top Management
11
Management Team
12
Plant Personnel
14
Company Profile
16
Shareholding Structure at the year end 2010
17
Five Year s Financial Highlights
19
Performance Indicators
20
Financial Highlights in 2010
22
From the Desk of Chairman
23
Directors Report to the Shareholders
24
Managing Director s Review of Business Environment
28
Value Added Statement
31
Distribution of products
32
Principal Products and Services
33
Photo Album
40
Corporate Social Responsibility
42
Statement on Directors Responsibility
43
Corporate Governance
44
Compliance Report on SEC s Notification
46
Auditors Report
50
Statement of Financial Position
52
Statement of Comprehensive Income
53
Statement of Changes in Equity
54
Statement of Cash Flows
55
Notes to the Financial Statements
56
Attendance Slip and Proxy Form
87
Letter of Transmittal
All Shareholders
Bangladesh Bank
Securities and Exchange Commission
Registrar of Joint Stock Companies & Firm
Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited
Dear Sir (s):
Annual Report for the year ended December 31, 2010
Enclosed please find a copy of the Annual Report together with the Audited financial statements including
consolidated and separate Balance sheet as at December 31, 2010 and income statements, cash flow
statements and changes in equity statements for the year ended December 31, 2010 along with notes
thereon.
Thank you.
Yours sincerely,
Md. Warisul Abid
Company Secretary
4
MJL Bangladesh Limited
ANNUAL REPORT 2010
MJL Bangladesh Limited
Mobil House, CWS (C) 9, Gulshan-1, Dhaka-1212
Notice of the 13th Annual General Meeting
Notice is hereby given that the 13th Annual General Meeting of the company will be held on Wednesday,
September 21, 2011 at 10:30 AM at Bangabandhu International Conference Centre, Agargaon, Dhaka to
transact the following business:
Agenda:
1.
To confirm the minutes of the 12th Annual General Meeting held on June 25, 2010.
2.
To receive, consider and adopt the Report of the Directors and the Audited Accounts of the Company
for the year ended on December 31, 2010.
3.
To declare dividend for the year ended on December 31, 2010.
4.
To elect Directors of the Company.
5.
To appoint Auditors of the Company for the term until conclusion of the next Annual General
Meeting and fix their remuneration.
August 25, 2011
By order of the Board of Directors
Md. Warisul Abid
Company Secretary
Notes:
1.
August 14, 2011 is the record date. Shareholder whose name will appear in the share register of the
company or in the depository register on that date will be eligible to attend the AGM and to receive
dividend approved.
2.
A member eligible to attend the Annual General Meeting is entitled to attend and vote on his/her
behalf. No person shall act as a proxy unless he/she is entitled to be present and vote in his/her own
right.
3.
Form of proxy, duly completed, must be deposited at the company s share department not later
than 48 hours before the time fixed for the meeting.
MJL Bangladesh Limited
ANNUAL REPORT 2010
5
Corporate Information
Registered and Corporate Office
MJL Bangladesh Limited.
Mobil House, CWS (C) 9
Gulshan-1, Dhaka-1212.
Bangladesh.
Tel: +88 (02) 8813597-8, 8813661
Fax:+88 (02) 9885269
Share Department
House 73, Block-K, Suhrawardy Avenue
Baridhara, Dhaka-1212.
Tel: +88 (02) 8829510, +88 01713436364
Chittagong Office
House # 138/A, Road # 1,
CDA R/A, Agrabad,
Chittagong- 4100, Bangladesh.
Ph: +88 (031) 716997, 714640
Fax: +88 (031) 716997
Plant Address
Guptakhal, East Patenga
Chittagong-4205, Bangladesh.
Ph: +88 (031) 2501093, 2500937
Fax: +88 (031) 2501094
Business Hours
9.00 A.M to 6.00 P.M
Auditors
ACNABIN
Chartered Accountants
BDBL Bhaban (13th Floor)
12, Karwan Bazar, Dhaka 1215
Legal Advisor
C. T. Karim & Partners
Suite # 7D, Paramount Height (7th Floor)
65/2/1 Culvert Road, Purana Paltan, Dhaka - 1000
6
MJL Bangladesh Limited
ANNUAL REPORT 2010
Board of Directors
Chairman
Mohammad Mejbahuddin
Secretary, Energy & Mineral Resources Division, Ministry of Power, Energy & Mineral
Resources, Government of Bangladesh
Directors
Mizanur Rahman
Managing Director, Jamuna Oil Company Limited
Abdul- Muyeed Chowdhury
Chairman, Tiger Tours Limited
Md. Aminur Rahman
Director, Mobil Jamuna Fuels Limited
Quazi Mohammad Shariful Ala
Managing Director, Delta Brac Housing Finance Corp. Ltd
Azam J. Chowdhury
Director, Prime Bank Limited
Managing Director
Azam J. Chowdhury
Company Secretary
Md. Warisul Abid
MJL Bangladesh Limited
ANNUAL REPORT 2010
7
Brief Profile of the Directors
Mohammad Mejbahuddin
Chairman, Board of Directors
Mr. Mohammad Mejbahuddin is Chairman of the Board of Directors of MJL
Bangladesh Limited (MJLBL). Mr. Mejbahuddin is representing the Jamuna Oil
Company Limited on the Board of MJLBL since May 5, 2010. He is presently the
Secretary of the Energy & Mineral Resources Division, Ministry of Power, Energy &
Mineral Resources, Government of Bangladesh. Besides MJLBL, Mr. Mejbahuddin
represents the Government on the Board of Directors of Karnaphuli Fertilizer
Company Limited (KAFCO). He is also the Chairman of Titas Gas Transmission &
Distribution Company Limited; Bangladesh Petroleum Exploration & Production
Company Limited; Bangladesh Gas Fields Company Limited; and Bangladesh
Petroleum Institute. Prior to his appointment as Secretary In-charge of the Energy
& Mineral Resources Division, he was Additional Secretary of Economic Relations
Division (ERD) of the Ministry of Finance. Mr. Mejbahuddin joined the Civil Service of
Bangladesh in 1983, and served in a number of ministries at various important levels,
including Joint Secretary of the Ministry of Communication; Economic Counselor of
the Embassy of Bangladesh in Rome, Italy; and Joint Commissioner of Customs at the
National Board of Revenue. Mr. Mejbahuddin earned his Master of Arts degrees in
Public Administration from Dhaka University, Bangladesh and also obtained Hubert
H. Humphrey Fellowship from Pennsylvania State University, USA.
Abdul-Muyeed Chowdhury
Director
Mr. Abdul-Muyeed Chowdhury is a nominee Director representing EC Securities
Limited in the Board of Directors of MJLBL since December 14, 2003. He is currently
the Chairman of BRAC Bdmail Network Limited, a US Bangladesh joint venture ISP
Company and an independent Director of Pioneer Insurance Company Limited. Mr.
Chowhdury was a former Adviser to Caretaker Government of 2001 in Bangladesh.
A career civil servant for 33 years he was a Secretary to the Government in various
ministries from 1994 to 2000. His last assignment was as Secretary Internal
Resources Division (IRD) of the Ministry of Finance and ex-officio Chairman of the
National Board of Revenue (NBR) for two years until his retirement in July, 2000.
He was a successful Managing Director of Biman Bangladesh Airlines. As Executive
Director of Jamuna Multipurpose Bridge Authority and Secretary Jamuna Bridge
Division, he steered the construction work of Bangabandhu Bridge on river Jamuna
to completion in record time. Mr. Chowdhruy was the Executive Director of BRAC
from 2000 to 2006. He was also the Chairman of SME Foundation, Bangladesh,
a not-for-profit organization under public-private partnership for promoting and
developing the SME sector in Bangladesh. He also held the position of Chairman at
Bangladesh Telecentre Network (BTN), a coalition of organizations and individuals
committed to provide Internet based shared access points for information and
other facilities to the rural communities across the country. Mr. Chowdhury was a
Vice President of Bangladesh Olympic Association, President of National Shooting
Federation of Bangladesh. He was a Global Councilor of International Union for
Conservation of Nature (IUCN) during 2004-2008. Mr. Chowdhury obtained a
Bachelor of Arts (Honors) in History in 1964 and a Master of Arts in Modern History
from the University of Dhaka in 1965. He also attended University of Tennessee
(Knoxville, USA) for 9-months as a Fulbright scholar in 1980-81.
8
MJL Bangladesh Limited
ANNUAL REPORT 2010
Md. Aminur Rahman
Director
Mr. Md. Aminur Rahman was appointed at the Board of Directors of MJLBL as a
nominee Director of EC Securities Limited in September 2008. Mr. Rahman joined
the Civil Service of Bangladesh in November 1970, and retired as Secretary of the
Ministry of Commerce of Government of Bangladesh in January 2005. During his
long service tenure with the Government, he served in a number of ministries at
various important levels, including Secretary of the Ministry of Housing and Public
Works and Secretary-in-Charge of the Ministry of Textile. Mr. Rahman obtained
a Bachelor of Science degree from the University of Dhaka and a Post-Graduate
Diploma in Economics & Social Studies from the University of Manchester, UK.
Mizanur Rahman
Director
Mr. Mizanur Rahman is a nominee Director representing Jamuna Oil Company
Limited at the Board of MJL Bangladesh Limited since March 23, 2009. Mr. Rahman
is presently the Managing Director of Jamuna Oil Company Limited, a shareholder
of MJL Bangladesh Limited. Mr. Rahman has over 30 years of professional
experience in the downstream petroleum industry of the country. After being
graduated with Honors in Political Science from the University of Dhaka, he joined
Bangladesh Petroleum Corporation (BPC) in June 1978, and served until November
10, 2009, with the position of Director, Marketing. He is also widely known as an
accomplished theatre worker, actor and playwright.
MJL Bangladesh Limited
ANNUAL REPORT 2010
9
Quazi Mohammad Shariful Ala
Director
Mr. Quazi Mohammad Shariful Ala is a nominee Director representing
EC Securities Limited at the Board of MJL Bangladesh Limited since
September 2002. He is presently the Managing Director and CEO of Delta
BRAC Housing Finance Corporation (DBH), a position he has held since July
1997. Besides, he is also a Director of BRAC Bank Limited. Prior to joining
DBH, he was the Finance Director of Green Delta Insurance Company
Limited. He has also worked in the London Office of Price Waterhouse
Coopers (one of the big four international accountancy and consultancy
firms) for six years. Whilst at Price Waterhouse, Mr. Ala had worked on
assignments with some of the largest listed companies in the UK and US
including, JP Morgan, Barclays Bank, Shell Group, Unilever, etc. He has
altogether more than 28 years professional experience primarily in the
financial sector both in Bangladesh and in the United Kingdom. Mr. Ala
is a Chartered Accountant from the Institute of Chartered Accountants of
England & Wales and graduated with first class honors in Economics from
the London School of Economics, University of London, UK.
Azam J. Chowdhury
Director and Managing Director
Mr. Azam J. Chowdhury is a nominee Director representing EC Securities
Limited at the Board of Directors of MJL Bangladesh Limited since March
1999. Mr. Chowdhury was also appointed as the Managing Director of the
Company in January 2002. He is the Chairman of East Coast Group, a fast
growing group with a highly diversified business portfolio. He is also the
Chairman of Bangladesh-Norway Chamber of Commerce & Industry; Vice
President of Bangladesh Energy Companies Association and Member of
Advisory Council of the Government of Bangladesh on Power, Energy &
Mineral Resources. He is also the Director of Prime Bank Limited, Central
Depository Bangladesh Limited (CDBL). Mr. Chowdhury is also the
Chairman of the Consolidated Tea & Lands Co. (Bangladesh) Limited (James
Finlay). He was Chairman of Green Delta Insurance Co. Limited, one of
the most successful general insurance companies in Bangladesh. Having
completed his Masters in English Literature from the University of Dhaka,
he attended courses on Business Administration in UK and Singapore. He
also completed a course in Pricing and Costing sponsored by UNCTAD
under United Nations. In recognition to his performance, Hungarian
Government nominated him as the Honorary Consul of the Republic of
Hungary in Bangladesh. He is actively involved in various philanthropic
activities, including establishment and management of school and
charitable clinic with primarily focus to provide underprivileged people
free access to educational and medical facilities. He is also a renowned
Golfer and achieved laurels several times in this sporting arena.
10
MJL Bangladesh Limited
ANNUAL REPORT 2010
Top Management
Managing Director
Azam J. Chowdhury
Chief Executive Officer
Sanaul Haque
General Manager and Chief Engineer
M. Mukul Hossain
Chief Financial Officer
Mohammad Tipu Sultan, FCA
Plant Manager
Engr. Salah Uddin Ahmed
Chief Human Resources Officer &
Company Secretary
Md. Warisul Abid
MJL Bangladesh Limited
ANNUAL REPORT 2010
11
Management Team
12
From the left (sittinng)
From the left (standing)
Seakh Awan Hoque
Assistant General Manager, Logistics & Order Fulfillment
Shehabun Saaqeb
Assistant Manager, Business Systems
Asif Malik
Chief Operating Officer
Shafquat Mahmud Fahmi
Manager, Information and Technology
Sanaul Haque
Chief Executive Officer
Abdullah Hel Aziz
Assistant Manager, Logistics & Order Fulfillment
M. Mukul Hossain
Chief Engineer and General Manager
A. B. M. Mostakur Rahman
Assistant Territory Manager- Dhaka Center
Mohammad Tipu Sultan FCA
Chief Financial Officer
Monirul Islam
Manager, Customer Services
Warisul Abid
Chief Human Resources Officer and
Company Secretary
Md. Shahin Alom
Assistant Manager, Industrial Lubricants
MJL Bangladesh Limited
ANNUAL REPORT 2010
Md. Ariful Karim
Assistant Manager, Automotive Lubricants
Ashraful Alam
Assistant Manager, Sales & Marketing
Mir Mohammad Rokibul Kabir
Senior Executive, Share Department
Abu Sadat Khan
Assistant Manager, Customer Service
Syed Atiqur Rahman
Accounts Controller
Md. Rasheduzzaman
Manager, Industrial Lubricants
Naymun Nahar
Assistant Manager, Human Resources
Zamiur Rahman
Assistant Treasury Controller
Md. Masudul Hoque
Controller, VAT and Tax
Nazrul Alam Swapon
Manager, Sales & Marketing
Farhana Afreen Mahmood
Manager, Human Resources & Admin.
Sk. Ashiqur Rahman
Assistant Manager, Industrial Lubricants
Tareq Sami Rahman
Manager, Finance & Planning
Kajal Kumar Addya
Assistant Accounts Controller
MJL Bangladesh Limited
ANNUAL REPORT 2010
13
Plant Personnel
From the left
Mohammad Anwar Sadat
Assitant Manager (Blending & Filling)
Shahriar Shahadat Bulbul
Senior Chemist
Md. Ahsan Ullah
Manager, Administration
Akramul Hoque
Chief Chemist
Jahangir Alam
Manager, Warehouse
Jyotirmay Sarker
Manager (Blending & Filling)
Kamrul Islam
Senior Chemist
Dipankar Kumar Das
Senior Production Engineer
Engr. Salah Uddin Ahmed
Plant Manager
14
MJL Bangladesh Limited
ANNUAL REPORT 2010
Company Profile
MJL Bangladesh Limited, formerly Mobil Jamuna Lubricants Limited, is a joint venture company between
state owned Jamuna Oil Company and EC Securities Limited (subsidiary of the East Coast Group). The journey
of blending world-class lubricants in Bangladesh started in 1998 when Mobil Corporation (after the merger
known as ExxonMobil Corporation) decided to set up Mobil Jamuna Lubricants Limited in partnership with
the state owned Jamuna Oil Company Limited.
MJL Bangladesh Limited envisioned that Bangladesh would be one of the few countries in the region
to blend high quality lubricants. MJLBL started its commercial operation on May 20, 1999. The company
commissioned a state- of-the-art Lube Oil Blending Plant (LOBP) - the first of its kind in the country - in
May 2003. Since then, the production of this plant and marketing activities of MJL Bangladesh Limited have
expanded greatly.
As required by ExxonMobil s Quality Integrity Management System (QIMS), this zero emission Plant strictly
follows the quality programs, starting from receiving the base oils from ExxonMobil and additives sourced
from other global suppliers as per ExxonMobil recommendation and formulation. The Plant is certified by
ExxonMobil QP&G and QIMS, and Germinischer Lloyd (GLC) for ISO 9001-2008. A team of highly qualified,
trained and skilled personnel operate the Plant with a warranty of hundred percent product quality
assurances.
With a nationwide supply chain to cater the lubricant needs of the country, the Company strictly follows a
customer first policy. Its expert sales and engineering support service personnel work with utmost dedication
to help identify the right products and services for the customer s needs. One can easily find in the market a
professional array of the quality products blended and marketed by MJL Bangladesh Limited (MJBL). Where
there is engine there is presence of MJL Bangladesh Limited to give appropriate lubrication solutions. Thus
the lubricants blended and marketed by MJL Bangladesh Limited are being used in powering the engines
touching all corner-stones of modern developments of the country including motor vehicles, locomotive
engines, river, sea and ocean going vessels, aviation and power and other sectors of the country.
Being a shining example of Technology Transfer in the country, the company has created direct employment
opportunities for 120 people, 2000 associated jobs, significant value addition in lube blending and the
availability of world-class lubricants and greases in Bangladesh.
16
MJL Bangladesh Limited
ANNUAL REPORT 2010
Shareholding Structure at the Year End 2010
Name of Shareholders
Number of Shares
% of total Shareholding
EC Securities Limited
105,220,000
74.98575 %
Jamuna Oil Company Ltd
35,080,000
25.00000 %
Mr. Azam J. Chowdhury
4,000
00.00285 %
Mrs. Marina Yasmin Chowdhury
4,000
00.00285 %
Mr. Tanjil Chowdhury
4,000
00.00285 %
Ms. Dilruba Chowdhury
4,000
00.00285 %
M/s Parkesine Products Ltd
4,000
00.00285 %
140,320,000
100.00000 %
Total
Shareholding Structure
at the Year End 2010
Others
0.014250%
Jamuna Oil Company Ltd
25.00000%
EC Securities Limited
74.98575%
MJL Bangladesh Limited
ANNUAL REPORT 2010
17
18
MJL Bangladesh Limited
ANNUAL REPORT 2010
Five Year’s Financial Highlights
Figure in Tk 000 unless specified
Particulars
2010
2009
2008
2007
2006
Sales
3,847,949
3,238,077
2,857,405
2,338,480
1,963,810
Less: COGS
2,898,732
2,397,792
2,114,391
1,803,531
1,583,649
Gross Profit
949,217
840,285
743,014
534,949
380,161
82,005
69,214
78,822
12,552
6,303
Less: Administrative and
selling expenses
235,153
194,608
158,447
110,639
86,619
Less:
Financial Charges
114,168
59,381
60,079
77,695
66,637
Profit before Tax
681,901
655,510
603,309
359,168
233,208
-
-
57,410
83,986
-
Less: Provision for income tax
173,564
312,258
143,018
15,792
20,499
Net Profit After Tax
508,337
343,252
402,882
259,390
212,709
3.62
2.45
11.48
7.39
6.06
Add:
other Income
Less: Tax Holiday Reserve
Earnings Per Share (Tk)
MJL Bangladesh Limited
ANNUAL REPORT 2010
19
Performance Indicators
Current Ratio
0.89
0.78
0.87
2008
1.68
1.45
2007
0.21
.98
1.36
2.08
1.48
Quick Ratio
2006
2009
2010
2006
2007
Year
2008
2009
2010
Year
Net Asset Turnover Ratio
2008
2009
2010
Year
2.12
2.23
1.18
2.78
2007
2.63
2006
1.98
2.49
4.53
2.66
3.4
Inventory Turnover Ratio
2006
2007
2008
2009
2010
Year
Earning Per Share
20
MJL Bangladesh Limited
ANNUAL REPORT 2010
2009
2010
22.88
19.36
2006
2007
24.67
2008
Year
25.95
2007
26.00
2006
3.62
2.45
6.06
7.39
11.48
Gross Margin Ratio
2008
2009
2010
Year
Net Income Ratio
2006
17.57
2010
2009
2010
2006
2007
2008
2009
15.64
10.01
22.53
29.53
36.84
Return on Equity Ratio
12.34
15.36
13.97
15.07
2008
Year
2009
Year
Return on Asset Ratio
2007
2008
15.28
2007
r a eY
2006
19.82
2010
20.55
2009
31.50
2008
11.84
2007
8.84
11.03
2006
10.38
10.8
13.72
Opearting Income Ratio
2010
Year
MJL Bangladesh Limited
ANNUAL REPORT 2010
21
Financial Highlights in 2010
Profit after Tax
Earnings per share
increased by
reached BDT
48%
3.62
Net Asset Value
Total Assets
per share BDT
grew by
23.17
82.30%
to reach BDT 508.33 million
2009: BDT 10.86
Shareholder equity
rose by
113.46%
to reach 3,251 million
22
MJL Bangladesh Limited
ANNUAL REPORT 2010
2009: BDT 2.45
to reach BDT 5,089 million
From the Desk of Chairman
It is indeed a great pleasure for me to be here with you in the 13th Annual General Meeting of the MJLBL.
On behalf of the Board of Directors and myself, I would like to express my heartful thanks and profound
gratitude to all of you for your continuous support and guidance in achieving excellence in the performance
of the company for the calendar year 2010.
It is my pleasure to announce that MJLBL got listed in Dhaka Stock Exchange and Chittagong Stock Exchange
in June 2011.The Company collected Tk 4,600.00 million at a premium of Tk 105.00 (Taka 10 face value per
share). The issue price was derived through price discovery process under book building method. I express
my gratitude to investors for their overwhelming confidence reflected in its being oversubscribed.
During the calendar year 2010, Company s sales revenue was Tk 3847.9 million which was Tk 3230.8 million
in 2009 reflecting 19% growth in sales revenue. Revenue Pie consists of 48% from manufacturing unit and
52% from trading unit. The growth in sales revenue was also augmented by the growth of sales volume and
sales price. MJL Bangladesh Ltd is a very profitable company with consistent high return over the years. Profit
after tax of the company stood at Tk 508.33 million in calendar year 2010 against Tk 343.25 million in the
previous year indicating a sharp increase of 48%. While analyzing other profitability indicators, Earning per
share stood at Tk 3.62 in 2010 against Tk. 2.45 of 2009
Finally, I would like to extend my gratitude to Securities and Exchange Commission, Dhaka Stock Exchange,
Chittagong Stock Exchange, Registrar of Joint Stock Companies and Firms, National Board of Revenue,
Bangladesh Bank and all other regulatory authorities for their valuable guidance, support and cooperation.
Mohammad Mejbahuddin
Chairman
MJL Bangladesh Limited
ANNUAL REPORT 2010
23
Directors’ Report to the Shareholders
Oil Industry Profile
Throughout the world oil sector is one of the most
sensitive sectors in the economy as the economic
growth in general and business cycles in particular
are greatly influenced by the fluctuations in oil
prices. Despite enhanced awareness about adverse
impact on climate from fossil fuel use, demand for
liquid fuel has gone up particularly in emerging
countries. Global energy demand growth in 2010
was 5.6 percent compared to global GDP growth of
4.9 percent. More particularly, globally oil production
growth in 2010 was 2.2 percent while consumption
growth was 3.1 percent which further exacerbated an
already fragile demand- supply balance. The current
gap between demand and supply in combination
with political unrest in Middle East has contributed
to price hike in oil in 2011 comparable to 2008.
The economies of the world, in particular, the less
developed ones are under intense fiscal pressure
due to price hike of petroleum products.
The commercial energy mix in Bangladesh is
predominantly dependent on natural gas which is
73 percent followed by petroleum products at 25
percent. Following Government s fuel diversification
strategy for power generation, import of liquid fuel is
expected to grow 40 percent in 2011-12 compared to
last year. A high import cost of oil is not only putting
pressure on the country s balance of payment but
also generating huge fiscal stress on budget as price
pass on is limited.
The petroleum sector operates mainly under
government control. However, private sector
operation has been allowed in condensate
fractionation, production and marketing of LPG
and lube products. The private sector can now also
import furnace oil for industrial use.
24
MJL Bangladesh Limited
ANNUAL REPORT 2010
At present, the three oil marketing companies
captured only about 30% of the market demand of
lubricant products. It is notable here that BPC has no
price control on the lubricants products. The pricing
structure is settled by the government at ex-refinery
level, depots level, and also at consumer level in
different distances. The commission at each level
of suppliers i.e. oil marketing companies, agents,
dealers are also fixed by the Government. According
to the Gazette, BPC reimburses the transportation
cost to the oil marketing companies.
Business Review:
During the calendar year 2010,
Company s sales revenue was
Tk 3847.9 million which was Tk
3230.8 million in 2009 reflecting
19% growth in sales revenue.
Revenue Pie consists of 48% from
manufacturing unit and 52% from
trading unit. The growth in sales
revenue was also augmented by
the growth of sales volume and
sales price. MJL Bangladesh Ltd
is a very profitable company with
Sales Revenue
3230.8
On behalf of the Board of Directors, I welcome you
to the 13th Annual General Meeting of the company
and have the pleasure to present the Audited Balance
Sheet, Profit & Loss Account, Cash Flow Statement
and Statement of Changes in Equity for the year
2010 along with the Auditors Report thereon.
GoB established BPC by a Presidential Ordinance
in 1976 (# 88, 13/11/1976) with the philosophy of
providing petroleum products to all consumers at
equal price irrespective of transportation cost. As per
the Bangladesh Petroleum Act, 1974, production,
processing, refining and marketing of petroleum
products in the country is vested exclusively with
the Government of Bangladesh. The Petroleum
Act also specifies the authorities, functions and
responsibilities of BPC including establishment of
plants & infrastructure, building necessary facilities
and their extensions for marketing of petroleum
products; monitoring, coordination of the subsidiary
companies of BPC and any other functions and
responsibilities as directed by the government. In
order to regulate the sector the major five functions of
BPC are being performed by subsidiary companies of
BPC. In the lube market, severe competition has been
prevailing due to the presence of more than 50(fifty)
competitors along with famous brands marketed by
three state owned oil marketing companies.
3847.9
Dear Shareholders,
2010 2009
consistent high return over the years. Profit after
tax of the company stood at Tk 508.33 million in
calendar year 2010 against Tk 343.25 million in the
previous year indicating sharp increase of 48%. While
analyzing other profitability indicators, Earning per
share stood at Tk 3.62 in 2010 against Tk. 2.45 of
2009.
343.25
508.33
The cost efficiency (Cost of goods Profit After Tax
sold to sales revenue) of the
company was almost stable in
the last two years. During the year
2010 it was marginally higher to
75.33 % against 74.05% in 2009.
The average unit cost of base oil
increased by 19% in 2010 and by
8% in 2009.Again average unit
cost of additives was increased
by 16% and 23% in respective
years. However average 8% in
2010 2009
2010 and average 12% in 2009
increase of sales price induced to
keep the cost efficiency in line with the previous year
of the company.
74.05%
75.33%
MJLBL is basically an import based (considering
volume of raw materials)
Cost of Goods Sold company
that
requires
to Sales Revenue
maintaining
significant
inventory. However, due
to short collection period
of receivables and timely
repayment of payables,
liquidity position always
remains at modest level. It is
reflected by the current ratio
which stood at 2.08 times
during the year. It may be
noted that the company has
a policy to sell all its product
2010 2009
mostly on cash basis. For
12%
Slaes Price Increase
2010 2009
Due to strong market image of MJL Bangladesh
Limited, it enjoys excellent relationship with
different
financial
institutions and have the Base Oil Price Increase
flexibility to raise funds
at a very attractive rate..
The profit generation of
the company was good
to serve the interest
obligation against the
revolving credit facilities.
In terms of interest
coverage
ratio,
the
earnings before charging
interest was 8.75 times in
the year 2010 and 12.55
2010 2009
times in 2009 showing
excellent debt servicing
capacity of the company.
8%
Manufacturing Unit
48%
this reason, there was no
significant trade receivable
at year end. Against the
above, the raw materials are
purchased through sight/
deferred L/C, consequently
average payable holding
period existed in 6-10 days.
The company maintains
considerable
investment
in FDR and other securities
amounting Tk.640.66 million
i.e.17.80 % of total current
assets, which are considered
highly liquid assets.
8%
Trading Unit
52%
19%
Revenue
Competitive Condition of Business:
In the lube market, severe competition has been
prevailing due to the presence of more than 50 (fifty)
competitors
At present, the three oil marketing companies
captured only about 30% of the market demand of
lubricant products. It is notable here that BPC has no
price control on the lubricants products.
The pricing structure is settled by the government at
ex-refinery level, depots level, and also at consumer
level in different distances. The commission at each
level of suppliers i.e. oil marketing companies, agents,
dealers are also fixed by the Government.
MJL Bangladesh Limited
ANNUAL REPORT 2010
25
Corporate and Financial Reporting Framework
Contribution to the National Exchequer:
In accordance with Securities and Exchange
Commission s Notification No./SEC/CMRCD/2006158/Admin/02-08 dated February 20,2006 the
directors are pleased to conform the following:
a. The financial statements together with the notes
thereof have been drawn up in conformity with
the Companies Act 1994 and Securities and
Exchange Rules 1987. These statements present
fairly the Company s state of affairs, the results of
its operations cash flow and changes in equity.
With a view to assist the Government in building
up revenues and thus contribute to the economic
development of the country, MJLBL regularly pays its
corporate tax on time. We also deposit Excise duty,
withholding tax and VAT to government exchequer
on time.
The Shareholding Pattern as per Clause 2(k) of SEC
Notification No. SEC/CMRRCD/2006-158/Admin/0208 dated February 20, 2006 is shown in page no. 18
of this report.
b.
Proper books of account of the Company have
been maintained.
c.
Appropriate accounting policies have been
consistently applied in preparation of the
financial statements and the accounting
estimates are based on reasonable and prudent
judgment.
Board Meetings and Attendance
International
Accounting
Standards,
as
applicable in Bangladesh, have been followed
in preparation of the financial statements
Human Resource Management:
d.
e.
The systems of internal controls are sound
and have been effectively implemented and
monitored.
f.
There are no significant doubts about the
Company s ability to continue as a going
concern.
g.
The significant deviations from last year in
operating results of the company have been
highlighted in the report and reasons thereof
have been explained
h.
The key operating and financial data for the last
five years are annexed.
Dividend:
Profit after tax during the year stood at Tk 508.33
million against Tk 343.25 million in the previous year
indicating a sharp increase of 48% in after tax profit.
The Board of Director of MJL Bangladesh Limited has
recommended 15% cash dividend and 15 % stock
dividend for the calendar year 2010.
26
Shareholding Pattern
MJL Bangladesh Limited
ANNUAL REPORT 2010
During the year ended on December 31, 2010, Five
Meetings of the Board of Directors were held. The
attendance of the Directors is shown in Annexure II
MJLBL has adopted the HR practices and organizational
culture in line with ExxonMobil s practices worldwide.
MJLBL has sound human resource policy to ensure
the congenial working environment and better
carrier path for the employees. Its HR development
plan and performance evaluation system is in line
with other renowned organization of the country.
Development programs are implemented in three
stages. First, training needs for a particular employee
are assessed by the departmental heads, then training
programs are conducted in in-house and outside
the organization, finally assessment is done for the
trained employee how he or she utilizes the training
in the workplace. For employees performance
evaluation a structured evaluation technique is
adopted by the company which includes both
quantitative and qualitative assessments. In addition
to compensation package, a number of policies are
formulated for welfare of employees in the form of
incentive/ performance bonus, medical allowance,
subsidized lunch, contributory provident fund and
employee gratuity scheme. At end of 2010, the total
human resource strengths were 105 against 81 in
2009.
Retirement & Rotation of Directors:
In Accordance with the Article of Association of the company, Mr. Mizanur Rahman, Abdul-Muyeed
Chowdhury, Md. Aminur Rahman, Qazi Md. Shariful Ala, Azam J. Chowdhury shall retire from the Board at
this Annual General Meeting and all of them are eligible for re-election. Proposal is put forward for their
re-election.
Appointment of Auditors:
ACNABIN was the auditor of the company during the year under review. They will retire at this Annual General
Meeting. Since they are eligible for re-appointment as the Auditor s of the company, the shareholders may
give approval for appointment of the aforesaid auditor for carrying on responsibility until the next Annual
General Meeting.
Appreciation:
The Directors would like to express their gratitude to the esteemed shareholder, valued clients, the Securities
& Exchange Commission, the National Board of Revenue, the Registrar of Joint Stock Companies and firms,
The Dhaka Stock Exchange and other regulatory bodies for their cooperation extended to the company
during the year. The Directors also express their appreciation for the relentless and sincere effort of the
management team and other staff members of the company without which it would not have been possible
to achieve the excellent growth recorded by your company during the year.
Thank you.
On Behalf of Board of Directors
Mohammad Mejbahuddin
Chairman
MJL Bangladesh Limited
ANNUAL REPORT 2010
27
Managing Director’s Review of Business Environment
No one would dispute the negative impact in the world economies from the recession starting from 2009.
But the degree of severity varies from country to country. The impact on the lubricant and lubricant base
stock market also differed in magnitude and duration. China, India, Indonesia, Vietnam and Bangladesh
barely slowed down. On the other hand growing economies like Russia & Brazil went into recession but the
contraction was milder in comparison with America and European Countries. Lubricants, therefore, remain
one of the key drivers of growth in Asia and growing countries around the world.
Bangladesh Economy
Bangladesh remains largely unaffected from recession but lack of prudent management of macroeconomic
and monetary policy led to large scale investment in unproductive sectors including stock market. Demand
for consumer goods continued to rise in the backdrop of a weak supply chain & domestic production not
proportionate to geometrical growth of demand for consumer goods. The rising inflation could not be
contained despite efforts by regulators.
Bangladesh economy made remarkable progress despite shortage of energy and resource constraints. The
garments, textile, pharmaceuticals, ceramics & IT business remain resilient. The rise in export of garment
& remittance from non-resident Bangladeshies significantly contributed in healthy balance of payment.
However, Bangladesh will have to face challenges of ensuring energy security to help sustain the current
level of GDP growth consistently.
Contribution of MJL Bangladesh Limited
MJL Bangladesh Limited is a key player
to keep the engine of industrial growth
running. Its contribution in automobile and
industrial market is substantial. Industries
operating in Bangladesh market differ
from each other in terms of complexity
and operation which demand application
of premium grade lubricants. It produces
more than I5O products. The company
being a market leader remains the largest
supplier of lubricant solution with efficient
supply chain and inventory management.
Product quality management is the top
priority of the company.
Lubricant Sales: Market Share
2010
2009
26%
29%
46%
51%
11%
13%
2%
2%
2%
Mobil
6%
2%
2%
6%
2%
Caltex
Shell
BP
The market for lubricants is growing
steadily, driven by an increase in demand
Low-cost brands
total
for quality and branded products. Out
Castrol
of the Tk. 1,200 crore retail markets of
lubricants in 2010, automobiles consumed
nearly three-fourths, while the industrial sector, aviation, marine and irrigation used the rest. The lubricant
market had a turnover of Tk. 1,000 crore in 2009 in terms of retail sales.
The low-quality and low-cost products have come down to 46 percent from 53 percent of the total
consumption in 2010. The yearly import of base oil of 11 local blenders are approximately 20,000 tons, while
MJL alone imports about half of the total import. Apart from MJL, the size and blending capacity of the other
blenders are smaller, ranging from 500 to 1,500 tons per year forcing the blenders to import base stock in
expansive flexibags.
MJL Bangladesh inaugurated its inline lube oil blending plant in 2003, where it blends and markets Mobil
lubricants under license of Exxon Mobil Corporation, world s largest company. MJL is now exporting Mobil
lubes to Nepal and Bhutan, the entry of Bangladesh lubricant in export market. Lubricant consumption is
projected at a minimum 450 kilo barrels (1 kilo barrel= 1,000 barrels) for 2011, up by just 15 kilo barrels
compared to that of 2010. The consumption was 425 kilo barrels in 2009. Mobil is by far the market leader
with a 29 percent stake worth Tk. 600 crore, followed by BP with 13 percent, Total 6 percent, Shell 2 percent,
Caltex 2 percent and Castrol 2 percent. The rest 46 percent by low-quality and low-cost brand operates.
According to statistics, sales of major brand products have increased significantly in 2009-2010. In 2009,
Mobil had a market share of 26 percent and BP was holding 11 percent.
Engine oil, also known as motor oil, is a liquid product used for lubricating various types of internal
combustion engines, such as automobile and industrial engines. It is also used in marine, agriculture, railway
and locomotive engines of aircrafts. The key function of the oil is to lubricate and clean the moving parts of
machines or engines to prevent corrosion and rust and keep the engines cool by carrying away the heat from
the sliding parts. The private sector lubricant business in Bangladesh is just a decade old; until 2000, only the
state-owned oil companies were allowed to import, blend and distribute lubricants in Bangladesh market. At
that time, most lube oils, nearly 65 percent contained no additives. The government liberalized the market
and banned non-additised lubricants in 2001, to ensure minimum standard. Since then, nearly 70 brands
MJL Bangladesh Limited
ANNUAL REPORT 2010
29
of lubricants, including renowned multinationals, have entered the market, half a dozen brands of which
account for nearly 50 percent of the total business. The application of low quality engine oil has become a
concern, as it can ruin an engine. Awareness campaigns have paid off as MJL Bangladesh Ltd. has been trying
to sensitize the consumers for some years now.
Expansion plan
As part of its business expansion plan, the company has set up 3 projects namely Grease manufacturing
plant, Transformer oil manufacturing plant and additive manufacturing facilities named Viscosity Improver
Projects. These projects have come into operation. It has also taken initiative to set up a State of the art LPG
terminal with storage & bottling facilities at Mongla to meet the growing demand of LPG in the market.
Note of Appreciation
I am not elaborating all areas of operation as they are adequately covered in the Annual Report. You are our
source of success and I want you to take pride of being shareholders of this great company. I owe you thanks
for the support and confidence reposed on us.
I sincerely thank ACNABIN Chartered Accountants for carrying out the external audit professionally and advise
us on various compliance issues relating to International Accounting Standards and Bangladesh Accounting
Standards.
In fine, I would like to express my deep gratitude to our regulators, Well-wishers and Stakeholders for their
continuous support and guidance in our quest for excellence. The roll of our human resource is praise-worthy
and truly in the core strength on the company. Their hard work makes MJL Bangladesh Limited different in
the eyes of one and all.
My sincere note of gratitude also goes out our distinguished Chairman and Honorable members of the Board
of Directors for their continuous support in running the operations of the company and for their guidance,
encouragement and empowerment to the management team without which 2010 result would not have
been achieved.
Azam J. Chowdhury
Managing Director
30
MJL Bangladesh Limited
ANNUAL REPORT 2010
Value Added Statement
The value added statement provides a detailed account of total value addition and the distribution of the value
created by the organization. MJLBL contributes positively to socio-economic development by empowering
employees through the payment of salaries and allowance; by assisting the regulatory capacities through
paying taxes and of course keeping in mind company s continuous expansion and growth.
2010
(Taka)
2009
%
(Taka)
Growth
%
%
Value Addition
Revenue
3,847,949,116
3,238,077,318
18.83%
Cost of Revenue
2,860,997,697
2,361,867,291
21.13%
Value Added Manufacturing
986,951,419
876,210,027
12.64%
Operation Expenses Less Employees
Remuneration & Depreciation
256,759,792
175,131,897
46.61%
730,191,627
701,078,130
4.15%
Add: Other Income
82,004,579
73,139,054
12.12%
Gross Value Added
812,196,207
100%
774,217,184
100%
4.91%
Distribution of Value Addition
Employees as Remuneration
98,601,664
12.14%
88,302,696 11.41%
11.66%
Government as Income Tax
173,563,682
21.37%
312,258,123 40.33%
-44.42%
31,693,544
3.90%
508,337,317
62.59%
812,196,207
100%
Depreciation
Value retained in Business
Number of employees at the end of the year
Value added per employee
30,404,576
3.93%
4.24%
343,251,789 44.34%
48.09%
774,217,184
4.91%
105
81
7,735,202
9,558,237
100%
MJL Bangladesh Limited
ANNUAL REPORT 2010
31
Distribution of products
MJLBL has made main distribution agreement with Jamuna Oil Company
Limited (JOCL), which is an oil marketing company of Bangladesh
Petroleum Corporation (BPC). Under this agreement, MJLBL has been
using the large infrastructural facilities of JOCL. JOCL has got a countrywide
extensive network of 16 depots in addition to its main installation at
Guptakhal in Chittagong, 431 Filling Stations, 852 Agents and 181 Packed
Point Dealers. All sorts of industrial, automotive and aviation lubricants
are supplied to JOCL s installation plant at Chittagong and subsequently
JOCL distributes products throughout the country. Major state owned
industries and power plants are supplied through JOCL. Other than JOCL,
MJLBL has distributed its products through wholesalers and directly to
the industrial buyers. Currently the company appointed 74 wholesalers to
sell the products throughout the country except to the JOCL s customers.
Moreover, MJLBL has supplied directly to more than 1000 industrial
buyers. Own distribution infrastructure of MJLBL includes main warehouse
in Chittagong, one warehouse in Dhaka and one warehouse in Bogra.
Besides, two more warehouse are under construction in Chittagong and
Dhaka. MJLBL s total distribution pie is evenly distributed i.e. each party
(JOCL, wholesalers and industrial buyers) are getting about 30%-35% of
total distribution. Sales are made against A/C Payee cheques for JOCL and
against Demand Draft or Payment order for wholesalers and industrial
buyers so there is no scope of irrecoverable debts.
32
MJL Bangladesh Limited
ANNUAL REPORT 2010
Principal Products and Services
MJLBL has a state-of-art Lube Oil Blending Plant (LOBP) in which a wide range of lubricants are produced
and distributed across the country of Bangladesh since 2003. Different types and qualities of lubricants are
made as per diversified demand in the lubricant market. MJLBL also import some finished products directly.
The company has more than seventeen (17) types of product lines serving wide range of customers from
different sectors of the country.
A. Automotive Passenger Vehicle Lubricants:
Two types of Automotive Passenger Vehicle Lubricants are marketed by MJLBL. Major Lubricants under this
product line are as follows:
Synthetic Oils: The world s leading Synthetic Engine Oils have unsurpassed engine protection with excellent
resistance to High Temperatures, Low-Temperature performance, Cleaning properties, Low Fuel Consumption
as well as greatly increase the engine overall life. The followings are the products of Synthetic Oils.
− Mobil 1 5W-50
− Mobil 1 0W-40
Mineral Oils: High quality premium Mineral Engine Oils are designed to provide high level of performance
and protection under severe operating conditions. They provide superior engine protection against harmful
deposits, sludge & varnish, corrosion and have very good cleaning properties under a variety of driving
conditions. The followings are the products of Mineral Oils.
− Mobil Super 1000 20W-50
− Mobil Special 20W-50
− Mobil Super 2T
− Mobil Super 4T 20W-50
− Mobil Outboard Plus
− Omera Heavy Duty Extra series
− Omera HD series
B. Automotive Commercial Vehicle Lubricants:
Heavy duty diesel engine oils are to meet all required specifications for Bus, Truck, Covered Van, Earth Moving
Equipment, Diesel Generator, etc. Major lubricants under this product line are as follows:
Synthetic oils: The world s most leading Synthetic Engine oils have unsurpassed engine protection, superior
resistance to high temperatures, great Low-Temperature performance, excellent cleaning properties, low
fuel consumption as well as increase the over all engine life for of all diesel engines. The name of the product
under synthetic oil is as under:
− Mobil Delvac 1 5W-40
Mineral Oils: The most advanced chemistry of Diesel Engine Oils provide outstanding performance both in
most modern, demanding low-emission diesel engines and older diesel engines operating on low or high
sulfur fuels. Lube oils blended with high performance base stocks and using progressive additive technology
MJL Bangladesh Limited
ANNUAL REPORT 2010
33
systems to provide superior control of oil thickening due to soot build-up and high temperatures as well as
outstanding resistance to oxidation, corrosion, and high temperature deposits.
The followings are the products under Mineral Oil category.
− Mobil Delvac MX 15W-40
− Mobil Diesel Special 20W-50
− Mobil Delvac 1350
− Mobil Delvac 1340
− Mobil Delvac 1330
− Mobil Hydraulic 10W
− Esso DIOL 13 RD 40
C. Automotive CNG Engine Oil
The premium fleet engine oil formulated to provide reliable protection for passenger vehicles, trucks and
buses using Compressed Natural Gas (CNG) or Liquefied Natural Gas (LNG). This engine oil is formulated
from high quality base stocks and a balanced additive system under proprietary formulation. This advanced
low ash formulation provides excellent oxidation, nitration, and thermal stability to minimize combustion
chamber ash deposits and provide long oil drain interval. The name of the product under automotive CNG
engine oil category.
− Omera CNG Special 20W-50
D. Automotive Gear & Transmission Fluid
Major Lubricants under this product line are:
Synthetic oils: The Synthetic base oils composition enable excellent performance even in the severest of
operating conditions. They offer outstanding gear shifting and power transfer performance. Synthetic oils
have resistance against thermal breakdown at high operating temperatures, while still providing outstanding
performance as they improve overall transmission durability and cleanliness. The followings are the products
of synthetic Oil under automotive gear & transmission fluid category:
− Mobil 1 Synthetic Gear
− Mobil 1 Synthetic ATF
Mineral Oils: These oils are formulated from high-quality base oils combined with special additive technology
systems including VI improvers, anti-oxidants, and Anti-foam properties providing smooth and controlled
friction/wear where extreme pressures and shock loadings are expected as well as increase the equipment
life. The followings are the products of mineral Oil under automotive gear & transmission fluid category:
− Mobil ATF 220
− Mobilube HD 80W-90
− Mobilube HD 85W-140
− Mobilube GX 80W-90
− Mobilube GX-140
E. Brake Oil
The extra high performance hydraulic Brake Fluid for use in automotive disc, drum and anti-skid brake
systems and clutch systems. The Potential Benefits of this product is Consistent and Safe Brake Performance
under severe braking pressure, Rubber Seal compatibility Reduces leakage and loss of fluid to a minimum
level. It provides excellent Corrosion Protection and extends life and reliability of brake system components.
Major Lubricant under this product line is:
− Mobil Brake Fluid Dot 4
34
MJL Bangladesh Limited
ANNUAL REPORT 2010
F. Antifreeze/Coolant
This product is suitable for cooling systems of different car, bus, truck etc. Mobil Concentrated antifreeze
formulation is hard water compatible and can be mixed with tap water before filling into the cooling system.
The potential benefit of this product is to help reduce scale deposits, corrosion in the engine.
G. Industrial Gear and Circulating Oils
Heavy-Duty Industrial Oils series are extra high performance gear oils, which are formulated from high quality
Synthetic or Mineral base oils and advance extreme pressure additive technology. Major Lubricants under
this product line are as follows:
Synthetic oils: The Mobil Synthetic lubricants are recognized and appreciated around the world for their
unique invention and outstanding performances. Advantages and Potential Benefits of these products areExtend equipment high temperature operating capability, Minimizes sludge and deposits for trouble-free
operation and long filter life. Balanced additive combination provides excellent performance in terms of rust
and corrosion prevention, demulsibility, foam control & air release performance ensuring smooth operation
in a wide range of industrial applications and reduced over all operating costs.
− Mobil Glygoyle 460
− Mobil Glygoyle 220
− Mobil SHC 626
− Mobil SHC 629
− Mobil SHC 630
− Mobil SHC 632
− Mobil SHC 634
− Mobil SHC 636
− Mobil SHC 639
Mineral Oils: The extra high performance mineral base gear oils having out-standing extreme pressure
characteristics and load-carrying properties, intended for use in all types of enclosed gear drives with
circulation or splash lubrication systems. The potential benefits of these products are enhanced gear
wear protection from micro-pitting, reduced debris denting from generated wear particles, outstanding
compatibility with a range of seal materials, excellent resistance to oil oxidation and thermal degradation as
well as increase the equipment life. Major Lubricants under this product line are as follows:
− Mobilgear 600 XP 68
− Mobilgear 600 XP 100
− Mobilgear 600 XP 150
− Mobilgear 600 XP 220
− Mobilgear 600 XP 320
− Mobilgear 600 XP 460
− Mobilgear 600 XP 680
− Mobil Vacuoline 148
H. Turbine & Circulating Oils
Synthetic Oil: Mobil SHC 800 Series turbine oils are designed specifically to meet the needs of the most severe
industrial gas turbine applications. The potential feature of these products under the series is outstanding
high Thermal/Oxidative Stability and Deposit Control, very good resistance to foaming and good Air Release
property, ensure long oil life as well as reduce maintenance cost. Major lubricants under this series are as
follows:
− Mobil SHC 800 Series
MJL Bangladesh Limited
ANNUAL REPORT 2010
35
Mineral Oils: Mobil DTE brands mineral-based oils have been the choice for turbine operators worldwide
for more than one hundred years. These products meet or exceed most major turbine equipment builder
specifications and industry specifications. These products also provide the ultimate flexibility to the operator
because they can be used in all turbine types: steam, gas, geared, hydro-turbines. Major Lubricants under
this product line are as follows:
− Mobil DTE 800 series
− Mobil DTE 700 series
− Mobil DTE Oil Light
− Mobil DTE Oil Medium
− Mobil DTE Oil Heavy Medium
− Mobil DTE Oil Heavy
− Mobil vacuoline 500 series
I. Hydraulic Oils
Major Lubricants under this product line are:
Marine Applications: These oils are constructed from selected base oils and a proprietary additive technology
to provide well balanced performance in a wide range of applications. The products exhibit exceptional
oxidation and thermal stability allowing long oil life and minimized deposit formation in severe hydraulic
systems using high pressure, high output pumps with better demulsibility properties. The innovative ultra
keep clean performance protects critical hydraulic system components from malfunction, such as tight
tolerance servo and proportional valves in many modern hydraulic systems.
− Mobil DTE 500 Series (Synthetic Oil)
− Mobil DTE 10 Excel 32
− Mobil DTE 10 Excel 46
− Mobil DTE 10 Excel 68
− Mobil DTE 10 Excel 100
− Mobil DTE 10 Excel 150
Industrial Applications: These oils are formulated with high quality base oils and a super-stabilized additive
technology that neutralizes the formation of corrosive materials. They are designed to work with systems
operating under severe conditions where high levels of anti-wear and film strength protection are needed.
− Mobil DTE 24
− Mobil DTE 25
− Mobil DTE 26
− Mobil DTE 27
− Mobil Nuto H 32
− Mobil Nuto H 46
− Mobil Nuto H 68
− Mobil Nuto H 100
− Mobil Nuto H 150
36
MJL Bangladesh Limited
ANNUAL REPORT 2010
J. Textiles/Garments Machinery Oils
These oils are premium performance products primarily designed for the lubrication of knitting & high speed
spindles in textile machines. They are also used in some critical hydraulic, circulation systems and air line
oilers where the appropriate viscosity grade is selected. They are formulated from high-quality, low viscosity
base oils and additives that impart good resistance to oxidation and protection from rust and corrosion.
Major Lubricants under this product line are as follows:
− Mobil Velocite 3
− Mobil Velocite 6
− Mobil Velocite 10
− Mobil Velocite HP 24
K. Gas Engine Oils
The next generation of Mobil Pegasus branded high performance gas engine oils are designed to provide
today s high output, low-emission four-cycle gas engines with the highest levels of protection. The
balanced formulation to provide outstanding anti-wear characteristics to protect heavily loaded valve
train components, pistons, liners, bearings, and gear trains. Their detergent-dispersant system controls the
formation of carbon and varnish deposits to minimize oil consumption and maintain engine cleanliness even
during extended drain intervals. Mobil Pegasus oils can help users keep their engines running longer and
cleaner with improved reliability.
− Mobil Pegasus 1 (Synthetic Oil)
− Mobil Pegasus 1005
− Mobil Pegasus 805
− Mobil Pegasus 710
L. Compressor Oils
Major Lubricants under this product line are:
Synthetic Oils: The Supreme performance oils primarily intended for the lubrication of severe duty rotary Screw
and Vane & Reciprocating air compressors. These oils provide excellent wear protection and outstanding
resistance to oxidation and thermal degradation, greatly superior to mineral oils.
− Mobil Rarus SHC 1024
− Mobil Rarus SHC 1025
− Mobil Rarus SHC 1026
− Mobil SHC 600 Series
− Mobil Rarus 825
− Mobil Rarus 827
− Mobil Rarus 829
Mineral Oils: The premium performance ash-less air & gas compressor lubricants designed to meet the
stringent requirements of the major compressor manufacturers. They are formulated with high quality
mineral base-oils and a high performance additive technology designed to provide exceptional equipment
protection and reliability for compressors operating under mild to severe conditions.
− Mobil Rarus 424
− Mobil Rarus 425
− Mobil Rarus 426
− Mobil Rarus 427
− Mobil Rarus 429
MJL Bangladesh Limited
ANNUAL REPORT 2010
37
M. Refrigeration Compressor Oils
The high performance Synthetic oil and Naphthenic base narrow-cut mineral oil primarily intended for use in
refrigeration compressors. They have a low pour point and excellent fluidity at very low temperatures. Major
Lubricants under this product line are:
− Mobil Gargoyle Arctic 226E (Synthetic Oil)
− Mobil EAL Arctic 32
− Mobil Gargoyle Arctic 300
− Mobil Gargoyle Arctic 155
N. Other Industrial Oils
There are various types of other oils blended with high quality base oils & proprietary additive technology for
intended use in various fields of machinery application; such as high temperature operated chain oil, electric
Transformer Insulating oil, Thermic Fluids and Metal Cutting oil. Major Lubricants under this product line are
as follows:
− Mobil Synthetic Oven Lube 1090 (Synthetic Oil)
− Mobil Pyrolube 830 (Synthetic Oil)
− Transformer Oil
− Mobiltherm 605
− Mobilcut 100
O. Marine Lubricants
The premium, extra high performance high & medium TBN engine oils are designed for use in the most
severe residual-fuelled medium-speed diesel applications found in marine and stationary power industries.
These diesel engine oils have been specially formulated to provide outstanding residual fuel compatibility
characteristics for excellent engine cleanliness, especially in crankcase, camshaft areas, piston ring belt and
under piston crown. They provide excellent high temperature oxidation and thermal stability, low volatility,
and high load carrying properties and corrosion protection.
− Mobil Gard 412
− Mobilgard 312
− Mobilgard M 330
− Mobilgard M 340
− Mobil Gard M 430
− Mobil Gard M 440
− Mobilgard M 50
− Mobil Gard 570
− Mobilgard 300
− Mobil Sterntube Oil
P. Greases
Greases are called magician s lubricants and are in the form of semi solid or sold natures. Greases are used
where the oil will fall out, amount of oil release needs to be controlled and equipment access is difficult.
Major greases are as follows:
38
MJL Bangladesh Limited
ANNUAL REPORT 2010
Synthetic oils: These greases are blended with selective Synthetic base oils and advanced additive technology
under proprietary technology to sustain and perform the needed functions in equipment s operating under
most severe conditions. These greases are used where operating temperature is very high. Major greases
under the product lines are as follows:
− Mobilith SHC 460
− Mobilith SHC 220
− Mobilith SHC 100
− Mobiltemp SHC 100
Minerals oils: These greases are formulated with high quality mineral base oils and selective additive
technology to meet or exceed the required demand or specifications for most of the equipment manufactures.
These greases are used in moderate to higher operating temperatures.
− Mobilux EP 0
− Mobilux EP 1
− Mobilux EP 2
− Mobilux EP 3
− Mobilgrease XHP 222
− Mobil Unirex N 3
− Omera Grease MP
− Omera Lith EP Series (EP 0, 1, 2, 3)
− Omera Plex XHP 2
Q. Aviation
Lubricants are the preferred brand for most of the leading aviation equipment manufacturers. MJL
Bangladesh Ltd. is also marketing Mobil branded aviation high quality lubricants in Bangladesh. Aviation
Lubricants offer nose-to-tail lubrication solutions that help make flying easier and safer. Major brands under
this product line are as under:
− Mobil Grease 28
− Mobil Jet Oil II
MJL Bangladesh Limited
ANNUAL REPORT 2010
39
Photo Album
1
2
3
4
5
1. Sponsorship in Golf Tournament
2. Training on usage of Lubricants
3. Mobil 1 Customer Relationship Program
4. Industrial Seminar
5. Lottery for Allotment of Shares
40
MJL Bangladesh Limited
ANNUAL REPORT 2010
Lube Oil Blending Plant, Patenga, Chittagong
MJL Bangladesh Limited
ANNUAL REPORT 2010
41
Corporate Social Responsibility
With businesses focusing on generating profits, sustainability was not a popular concern among companies
up until recently. Now, in an era of globalization, multinational corporations (those that conduct business
in more than one country) and local businesses are no longer able to conduct destructive and unethical
practices, such as polluting the environment, without attracting negative feedback from the general
public. With increased media attention, pressure from non-governmental organizations, and rapid global
information sharing, there is a surging demand from civil society, consumers, governments, and others for
corporations to conduct sustainable business practices. In addition, in order to attract and retain employees
and customers, companies are beginning to realize the importance of being ethical while running their daily
operations. The corporate response has often meant an adoption of a new consciousness and this has been
known as Corporate Social Responsibility (CSR) since the 1970s. MJLBL is deeply conscious of its obligations
to the Bangladeshi society and people and remains committed to their welfare within the possessions on
hand to it, at any time.
Event
:
Venue :
42
MJL Bangladesh Limited
ANNUAL REPORT 2010
Organizing Health Clinic for the employees of
Bangladesh Road Transport Corporation (BRTC)
BRTC Bus Depot, Mirpur, Dhaka.
Event
:
Organizing Relief Work for Flood Affected People
Venue
:
Dhunot, Bogra.
Statement on Directors’ Responsibility
The Directors are responsible for preparing the annual report and financial statement in accordance with
the Companies Act, 1994, Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), Securities
and exchange Rules 1987 and the Listing Regulation of the DSE and CSE. The Companies Act requires the
Directors to present the report along with the financial statements for each financial year in accordance with
BFRS and BAS as adopted by the Institute of Chartered Accountants of Bangladesh and applicable laws and
regulations. The financial statements are required by law and Bangladesh Accounting standards to present
fairly the financial position and the performance of the company for the period and to comply with rules and
regulations issued by Bangladesh bank, The Companies Act, 1994, the Securities and Exchange Rules 1987
and other applicable laws and regulations. In preparing financial statements, the Directors are required to:
z
select suitable accounting policies and then apply them consistently
z
make judgments and estimates that are reasonable an prudent
z
ensure that the financial statements have been prepared in accordance with Bangladesh Accounting
Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) as adopted by the Institute Of
Chartered Accountants of Bangladesh
z
prepare the financial statements on going concern basis unless it is inappropriate to presume that the
company will continue in business
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy
the financial position of the Company and enable them to ensure that its financial statements comply with
the Companies Act, 1994 and have general responsibility for taking such steps as are reasonably open to
them to safeguard the assets of the company and to prevent and detect fraud and other irregularities. To
ensure this the Directors have taken proper and sufficient care in installing a system of internal control, which
is reviewed, evaluated and updated on a regular basis.
Under applicable laws and regulations, the Directors are responsible for preparing a directors report that
comply with that laws and regulations.
The Directors confirm that the annual report together with the Directors report and the financial statements
have been prepared in compliance with the laws, rules and regulatory guidelines.
Mohammad Mejbahuddin
Chairman, Board of Directors
MJL Bangladesh Limited
ANNUAL REPORT 2010
43
Corporate Governance
Corporate governance is the system by which business corporations are directed
and controlled. The corporate governance structure specifies the distribution of
rights and responsibilities among different participants in the corporation, such
as the board, managers, shareholders and other stakeholders, and spells out the
rules and procedures for making decisions on corporate affairs. By doing this, it
also provides the structure through which the company objectives are set, and
the means of attaining those objectives and monitoring performance. Corporate
governance principle of MJL Bangladesh Limited ensures that Board remains
informed, independent and involved in the affairs of the company as well as the
ongoing efforts towards better corporate governance to mitigate non business risk.
The Board of MJLBL consists of six Directors including two representatives from JOCL
and four representatives from EC Securities Limited (ECSL). The Board members
have sound exposures in the operation and technical aspect of the business, since
they were involved in diversified services for long. The Board formulated strategic
objective and policies for the company, provides leadership in implementing those
objectives as well as supervises management of the company s affairs. Under the
supervision of the Board, Managing Director looks after the overall operational
activities as per the delegation of power and in accordance with the Memorandum
and Articles of Association of the company. To enhance the speed of the corporate
functions, MJLBL has formed an APQC (Affiliate Product Quality Committee)
consisting all functional heads and headed by MD. The committee meets twice a
year to evaluate the operational procedures of the company. Another committee
formed by MJLBL which is called Management Committee which sits every month
to see the overall activities of the company. Directors of MJL Bangladesh Limited
possess the highest personal and professional ethics, integrity and values and are
committed to representing the long term interests of the stakeholders.
44
MJL Bangladesh Limited
ANNUAL REPORT 2010
Compliance Report on SEC’s Notification
Status of Compliance with the conditions imposed by the Commission, Pursuant to the Notification no.
SEC/CMRRCD/2006-158/Admin/02-08 dated 20 February 2006 issued under Section 2CC of the Securities
Exchange Ordinance, 1969, detailed in Annexure I, II below:
Annexure- I
Condition
No.
46
Compliance
Status
Title
Complied
1.0
Board of Directors
1.1
Board s Size: Board members should not
be less than 5 (Five) and more than 20
(Twenty)
1.2 (i)
Independent Director: At least 1/10th
1.2 (ii)
Appointment of Independent Director(s)
by elected Directors
1.3
Individual Chairman of the Board , Chief
Executive, clearly defined roles and
responsibilities
1.4
Directors Report to the shareholders
1.4 (a)
Report of Fairness of state of affairs, the
results of operations, cash flows and
changes in equity
9
1.4 (b)
Maintenance of Proper Books of
Accounts
9
1.4 (c)
Consistency in application of appropriate
accounts policies in preparation of
Financial Statements
9
1.4 (d)
IASs as applicable in Bangladesh,
followed in FS preparation and any
departure adequately closed
9
1.4 (e)
Soundness of Internal Control System
and effectively implemented and
monitored
9
1.4 (f)
No significant doubts upon its ability to
continue as a going concern
9
1.4 (g)
Significant Deviation from last year in
Operating Results
9
1.4 (h)
Key Operating and Financial Data in the
last three preceding years
9
1.4 (i)
If the Company not Declared Dividend
9
MJL Bangladesh Limited
ANNUAL REPORT 2010
Not Complied
Explanation for
non-compliance
with the
condition
9
9
9
9
under review
under review
Condition
No.
Compliance
Status
Title
Complied
1.4 (J)
Number of Board Meeting held during
the year and attendance by each
Director
9
1.4 (k)
Pattern of Shareholding
2.0
Chief Financial officer and Company
Secretary
9
9
2.1
Appointment of CFO, Company
Secretary and defining their respective
roles, responsibilities and duties
9
2.2
Attendance of CFO and the Company
secretary at Board of Directors meeting
9
3.0
Audit Committee
3.1 (i)
Constitution of Committee
3.1 (ii)
Constitution of Audit Committee
with Board Members including one
Independent Director
3.1 (iii)
Filling of Casual Vacancy in Committee
3.2 (i)
Chairman of the Committee
3.2 (ii)
Professional qualification and experience
of the Chairman of the Committee
3.3.1 (i)
Not Complied
Explanation for
non-compliance
with the
condition
9
9
under review
9
9
9
under review
Reporting on the activities of the Audit
Committee to the Board
9
under review
3.3.1 (ii)
(a)
Reporting of Conflict of Interest to the
Board of Directors
9
under review
3.3.1 (ii)
(b)
Reporting of any fraud or irregularity to
the Board of Directors
9
under review
3.3.1 (ii) (c) Reporting of violation of laws to the
Board of directors
9
under review
3.3.1 (ii)
(d)
Reporting of any other matter to the
board of Directors
9
under review
3.3.2
Reporting of qualified point to
Commission
9
under review
4.0
External/Statutory Auditors:
4.00 (i)
Non-engagement in appraisal or
valuation
9
4.00 (ii)
Non-engagement in designing of
Financial Information System
9
4.00 (iii)
Non-engagement in Book- Keeping
4.00 (iv)
Non-engagement in Broker-Dealer
Service
9
9
under review
under review
under review
MJL Bangladesh Limited
ANNUAL REPORT 2010
47
Condition
No.
Compliance
Status
Title
Complied
4.00 (v)
Non-engagement in Actuarial Service
4.00 (vi)
Non-engagement in Internal Audit
4.00 (vii)
Non-engagement in any other Service
Not Complied
Explanation for
non-compliance
with the
condition
9
9
9
Compliance of section 1.4 (j)
Annexure- II
Composition
48
Board
Audit committee
Meeting held
Attended
Meeting held
Attended
Mohammad Mejbahuddin
5
5
N/A
N/A
Abdul-Muyeed Chowdhury
5
5
N/A
N/A
Md. Aminur Rahman
5
5
N/A
N/A
Mizanur Rahman
5
5
N/A
N/A
Quazi Mohammad Shariful Ala
5
4
N/A
N/A
Azam J. Chowdhury
5
5
N/A
N/A
MJL Bangladesh Limited
ANNUAL REPORT 2010
MJL Bangladesh Limited
ANNUAL REPORT 2010
49
Auditors’ Report
To the Shareholders of MJL Bangladesh Limited
(Formerly Mobil Jamuna Lubricants Limited)
We have audited the accompanying financial statements of MJL Bangladesh Limited (Formerly Mobil Jamuna
Lubricants Limited) which comprise the statements of financial position as at 31 December 2010, statement
of comprehensive income, statement of changes in equity and statement of cash flows for the year then
ended and a summary of significant accounting policies and other explanatory information for the year then
ended.
Management Responsibilities for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with Bangladesh Financial Reporting Standards where applicable, and for such internal control
as management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor s judgment including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of MJL Bangladesh
Limited (Formerly Mobil Jamuna Lubricants Limited) as at 31 December 2010, and its financial performance
and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards
and comply with the Companies Act 1994, Securities and Exchange Rules 1987 and other applicable laws
and regulations.
50
MJL Bangladesh Limited
ANNUAL REPORT 2010
We also report that:
(a)
our examination and checking of records, relevant books of accounts, registers, schedules and
financial statements were sufficient to enable us to form an informed and assessed opinion on the
authenticity and accuracy of the financial statements;
(b)
we have obtained all the information, explanations and documents as required by us;
(c)
the company s management has followed relevant provisions of laws and rules in managing the
affairs of the company. Proper books of accounts, records and other statutory books have been
properly maintained;
(d)
the statement of financial position and comprehensive income are in agreement with the said
books of account maintained by the company and examined by us; and
(e)
the expenditure incurred and payments made were for the purpose of the company s business for
the year.
Dhaka,
02 May 2011
ACNABIN
Chartered Accountants
MJL Bangladesh Limited
ANNUAL REPORT 2010
51
MJL Bangladesh Limited
(Formerly Mobil Jamuna Lubricants Limited)
Statement of Financial Position
As of 31 December 2010
Notes
31.12.2010
Taka
31.12.2009
Taka
ASSETS
Property, Plant and Equipments
Intangible Assets
Capital Work-in Progress
Investments in Bonds and Shares
Total Non-Current Assets
3
4
5
6
717,805,639
1,463,060
720,362,576
52,498,994
1,492,130,269
729,575,801
1,594,007
121,679,139
49,998,994
902,847,941
Inventories
Receivables
Advances, Deposits and Prepayments
Advance Income Tax
Investments
Cash and Cash Equivalents
Total Current Assets
7
8
9
1,039,932,037
177,520,128
141,367,895
354,548,118
640,664,148
1,243,231,372
3,597,263,697
911,608,552
93,710,391
60,091,133
266,030,100
434,877,311
122,557,525
1,888,875,013
5,089,393,965
2,791,722,953
12
13
14
1,403,200,000
1,219,200,000
628,727,970
3,251,127,970
1,403,200,000
120,390,653
1,523,590,653
15
110,380,242
110,380,242
110,851,587
110,851,587
16
17
18
19
20
1,110,559,290
88,845,836
25,966,104
400,560,911
101,953,611
1,727,885,753
1,838,265,995
5,089,393,965
712,147,858
9,714,632
79,920,039
271,525,881
83,972,303
1,157,280,713
1,268,132,300
2,791,722,953
23.17
10.86
10
11
Total Assets
EQUITY AND LIABILITIES
Equity
Share Capital
Share Money Deposits
Retained Earnings
Total Equity
Liabilities
Non-Current Liabilities
Deferred Tax Liabilities
Total Non-Current Liabilities
Current Liabilities
Short Term Loan
Bank Overdraft
Sundry Creditors
Provision for Income Tax
Other Liabilities
Total Current Liabilities
Total Liabilities
Total Equity and Liabilities
Net Asset Value (NAV)
26.1
The annexed notes form an integral part of the Statement of Financial Position.
Chairman
Managing Director
Chief Financial Officer
Company Secretary
This is the Statement of Financial Position referred to in our separate report of even date.
Dhaka
02 May 2011
52
MJL Bangladesh Limited
ANNUAL REPORT 2010
ACNABIN
Chartered Accountants
MJL Bangladesh Limited
(Formerly Mobil Jamuna Lubricants Limited)
Statement of Comprehensive Income
For the year ended 31 December 2010
Notes
Manufacturing
Unit
2010
Trading
Unit
Sales
21
1,861,327,660
Less: Cost of Goods Sold
22
Total
2009
Total
1,986,621,456
3,847,949,116
3,238,077,318
1,286,213,631
1,612,518,300
2,898,731,931
2,397,792,122
575,114,029
374,103,156
949,217,185
840,285,196
39,687,961
42,316,618
82,004,579
73,139,054
614,801,991
416,419,774
1,031,221,765
913,424,250
24
113,748,048
121,404,907
235,152,955
198,533,075
25
55,225,186
58,942,625
114,167,811
59,381,263
168,973,233
180,347,533
349,320,766
257,914,338
445,828,757
236,072,241
681,900,999
655,509,913
131,707,370
42,327,657
174,035,027
201,406,536
(471,345)
-
(471,345)
110,851,587
Gross Profit
Add: Other Income
23
Less: Administrative and
Selling Expenses
Financial Charges
Profit Before Tax
Less: Provision for Income Tax:
2.9
Current Tax
Deferred Tax
15
131,236,025
42,327,657
173,563,682
312,258,123
314,592,732
193,744,584
508,337,317
343,251,789
Other Comprehensive Income
-
-
-
-
Total Comprehensive Income
314,592,732
193,744,584
508,337,317
343,251,789
3.62
2.45
Net Profit after Tax
Earning Per Share (EPS)
26.2
The annexed notes form an integral part of the Statement of Comprehensive Income.
Chairman
Managing Director
Chief Financial Officer
Company Secretary
This is the Statement of Financial Position referred to in our separate report of even date.
Dhaka
02 May 2011
ACNABIN
Chartered Accountants
MJL Bangladesh Limited
ANNUAL REPORT 2010
53
54
MJL Bangladesh Limited
ANNUAL REPORT 2010
-
Interim Dividend Declared for 2009
Dividend paid for the year 2008
1,403,200,000
Total Comprehensive Income for the year
Balance as at 31 December 2010
-
1,403,200,000
Share Money Deposit
Balance as at 01 January 2010
1,403,200,000
Balance as at 31 December 2009
Transfer to Reserve & Surplus
-
-
(87,700,000)
1,052,400,000
87,700,000
Dividend
-
-
-
-
-
-
-
-
(141,395,601)
-
-
-
-
-
141,395,601
Tax Holiday
Reserve
-
-
1,052,400,000 (1,052,400,000)
-
Stock Dividend Issued for 2009
-
Dividend Declared for 2008
350,800,000
Balance as at 01 January 2009
Net Profit for the year
Share
Capital
Particulars
For the year ended 31 December 2010
Statement of Changes in Equity
(Formerly Mobil Jamuna Lubricants Limited)
MJL Bangladesh Limited
-
-
-
-
-
-
-
-
-
1,219,200,000
-
1,219,200,000
Share Money
Deposit
628,727,970
508,337,317
-
120,390,653
120,390,653
141,395,601
-
-
(1,052,400,000)
(87,700,000)
343,251,789
775,843,262
Retained
Earnings
3,251,127,970
508,337,317
1,219,200,000
1,523,590,653
1,523,590,653
-
-
(87,700,000)
-
-
343,251,789
1,268,038,864
Equity
(Total)
(Figures are in Taka)
MJL Bangladesh Limited
(Formerly Mobil Jamuna Lubricants Limited)
Statement of Cash Flows
For the year ended 31 December 2010
Notes
2010
Taka
2009
Taka
28
27
29
30
31
32
34
3,809,141,386
(91,359,598)
(2,924,914,306)
(357,340,147)
(107,757,765)
(133,518,018)
2,531,192
3,236,345,876
(97,940,716)
(2,009,288,227)
(264,893,220)
(58,468,953)
(268,179,491)
3,925,339
196,782,744
541,500,607
(598,683,437)
585,000
(111,361,441)
-
(205,786,837)
(2,500,000)
53,326,172
(19,792,432)
320,122,689
(49,998,994)
106,188,343
(209,371,155)
(772,851,534)
55,579,441
1,219,200,000
398,411,432
79,131,204
(87,700,000)
(306,470,909)
(3,842,599)
(166,701,112)
1,696,742,637
(564,714,620)
1,120,673,846
122,557,525
32,365,429
90,192,096
1,243,231,372
122,557,525
1.40
3.90
A. Cash flows from Operating Activities:
Cash received from Sales
Payroll and other payments to employees
Payment to Suppliers
Payment for Admin & Selling Expenses
Finance Expenses Paid
Income Tax Paid
Other Business Income
Net cash flow from operating activities
B. Cash flows from Investing Activities:
Payment against Capital Work-in Progress
Proceeds from sale of fixed assets
Encashment of FDR & Mutual Fund/(Investment in FDR
& Mutual Fund)
Investments
Financial Income received
Acquisition of fixed assets
33
Net cash flow from investing activities
C. Cash flows from Financing Activities:
Share Money Deposits
Dividend paid
Short term loan
Obligation under finance lease
Bank Overdraft
Net cash used in financing activities
D. Net Cash (Deficit)/Surplus for the year (A+B+C)
E. Cash & Cash equivalent at beginning of the year
F. Cash & Cash equivalent at end of the year
Net Operating Cash Flow Per Share (NOCFPS)
11
26.3
MJL Bangladesh Limited
ANNUAL REPORT 2010
55
MJL Bangladesh Limited
(Formerly Mobil Jamuna Lubricants Limited)
Notes to the Financial Statements
For the year ended 31 December 2010
1.
Background of the company
Mobil Jamuna Lubricants Limited was incorporated on 3 December 1998 as a private limited
company. The company went into commercial operations on 20 May 1999. Trial production of the
lube oil blending plant commenced on 9 May 2003. Commercial production commenced on 2 July
2003. During the period, the company was in the business of blending and marketing of lubricants
and greases. The Company converted into Public Limited Company on 03 December 2009 and
changed its name to MJL Bangladesh Limited (MJLBL). The address of the registered office of the
company is Mobil House, CWS (C) 9, Gulshan-1, Dhaka-1212.
MJLBL has offered its shares to the market through Initial Public Offering (IPO) of 40,000,000 ordinary
shares of Tk.10.00 per share including a premium of Tk. 142.40 per share. The price of share has been
determined via Book-Building method (as per Public Issue Rules - 2006). After due process, shares
will be alloted to successful applicants/shareholders as per the following percentage:
Segment
No of Shares
Eligible Institutional Investors
20%
8,000,000
Non-Resident Bangladeshis
10%
4,000,000
Mutual Funds
10%
4,000,000
General Public
60%
24,000,000
100%
40,000,000
Total
2.
Percentage
Significant Accounting Policies
2.1
Basis of Accounting
The financial statements have been prepared in accordance with The International
Financial Reporting Standards adopted in Bangladesh, Companies Act 1994, Securities &
Exchange Rules 1987 and other related rules & regulations as applicable.
2.2
Reporting Period
The financial period of the company covers year ended 01 January to 31 December 2010.
2.3
Revenue Recognition
Revenue represents the invoice value of goods supplied to customers during the year.
Revenue from sale of goods is recognized in the income statement when the significant
risks and rewards of ownership have been transferred to the buyer. Sales are recognized
when delivery certificate is raised against confirmed orders. Sales in these accounts are
stated as per Net Realization Value.
56
MJL Bangladesh Limited
ANNUAL REPORT 2010
2.4
Property, Plant & Equipment
As per policy, assets purchased at unit value exceeding Tk.20,000 are capitalised.
Depreciation is provided on straight line method and charged at normal rate (s) of 2%
to 20% for additions from the month of acquisition. No depreciation is charged in the
month of disposal or adjustment. No depreciation is charged for land and capital work in
progress.
2.5
Intangible Assets
Intangible asset is stated at cost less accumulated amortization using straight-line method.
Intangible assets include cost of acquisition of ERP software named Lubes Enterprise
Information system (LENISYS) purchased from Technovista as Local vendor. These are
amortized over a period of fifteen years starting from the month of acquisition irrespective
of its purchases date.
2.6
Inventories
Inventories are valued in accordance with Bangladesh Accounting Standard-2: Inventories
i.e. at cost or estimated net realizable value whichever is lower. The cost of inventories
includes expenditure for acquiring the inventories and bringing them to their existing
location and condition. Net realizable value is estimated upon selling price in the ordinary
course of business less estimated cost of completion of considering the selling. When the
inventories are used, the carrying amount of those inventories are recognized in the year
in which the related revenue is recognized.
2.7
Capital Work in Progress
Capital work in progress is reported on the basis of the report prepared by the construction
company.
2.8
Foreign Currency Transaction
Foreign currency transaction have been translated into BDT at the exchange rates ruling at
the transaction dates. Monetary assets and liabilities denominated in the foreign currencies
are translated at prevailing rates ruling at the financial position date. Non minority assets
and liabilities denominated in foreign currencies, which are related at historical cost, are
translated into Bangladesh Taka at the exchange date ruling at the date of transactions.
Foreign exchange fluctuation gain/losses are charged to statement of comprehensive
Income for the respective period.
2.9
Taxation
Current Tax:
Income Tax @ 37.5% is payable on net profit before tax. For trading business the company is
assessed under the provision of section 82C of the Income Tax Ordinance 1984. According
to this provision, all income taxes paid at source, under certain sections of the Ordinance,
will be treated as final discharge of the income tax liability of the company.
MJL Bangladesh Limited
ANNUAL REPORT 2010
57
Deferred Tax:
Deferred tax is recognised on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit, and are accounted for using the balance sheet method in
accordance with the provision of BAS-12:Income Taxes. No deferred tax is calculated on
trading unit as tax assessment is made under section 82(c) as final discharges. Tax rate
prevailing at the balance sheet date is used to determine deferred income tax.
2.10
Allocation of common costs between trading and manufacturing units
Common costs from 01 January 2010 to 31 December 2010 have been allocated between
trading and manufacturing units on the basis of proportionate sales revenue.
2.11
Gratuity & Provident Fund
The company introduced Gratuity and contributory Provident Fund Scheme from
September 2009.
2.12
Leased Assets
Lease transactions have been classified based on the extent to which risks and rewards
incident to ownership of the assets lie with the lessor/lessee. According to this classification,
all lease transactions have been identified as finance lease, as per IAS/BAS # 17: Leases.
2.13
Earning Per Share
The company calculate Earning Per Share (EPS) in accordance with BAS-33: Earning Per
Share, which has been shown at the bottom of the Statement of Comprehensive Income
and the computation of EPS is stated in note # 24.
Basic Earnings:
This represents earnings for the year attributable to the ordinary shareholders. As there
was no preference dividend, minority interest or extra ordinary items, the net profit for the
year has been considered as fully attributable to ordinary shareholders. Basic earnings per
share has been calculated by dividing the net profit or loss by the number of ordinary shares
outstanding during the year. Computation of number of ordinary shares are required as
number of shares outstanding has been changed during the year.
The basic EPS for the year 2009 has been restated by the current Share Capital.
Diluted Earnings Per Share:
No diluted EPS is required to be calculated for the year as there was no scope for dilution
during the year under audit.
2.14
Statement of Cash flows
Statement of cash flows is prepared principally in accordance with BAS-7: Statement of
Cash Flows and the cash flows from operating activities have been presented under direct
method as per part III of securities & Exchange Rules 1987.
58
MJL Bangladesh Limited
ANNUAL REPORT 2010
2.15
Event after Reporting date
All material events occurring after the reporting date are considered and where necessary,
adjusted for or disclosed.
2.16
Provisions
A provision is recognized on the date of financial position if, as a result of past events, the
company has a present legal obligation that can be estimated reliably and it is probable
that an outflow of economic benefits will be required to settle the obligation.
2.17
General
i.
Figures have been rounded off to the nearest Taka.
ii.
Previous year s figures have been rearranged wherever considered necessary to
conform to the current year s presentation.
iii.
The number of employees drawing Tk.3,000 or more per month during the year
was 105.
MJL Bangladesh Limited
ANNUAL REPORT 2010
59
3.
31.12.2009
Taka
Taka
Property, Plant & Equipments
A.
Cost
i)
Own Assets
Opening Balance
Add: Addition during the year
Add: Transferred/Adjustments during the year
ii)
Add: Addition during the year
209,371,155
945,226,121
913,698,187
(785,500)
11,735,500
944,440,621
925,433,687
-
11,735,500
11,735,500
Less: Transferred to fixed assets during the year
-
(11,735,500)
Total Cost
-
-
944,440,621
925,433,687
195,857,887
158,491,610
31,249,836
30,273,630
227,107,723
188,765,240
(472,741)
7,092,646
226,634,982
195,857,886
Opening Balance
-
7,092,646
Add: Charged during the year
-
-
-
7,092,646
Less: Transferred during the year
-
7,092,646
Total Leased Assets
-
-
Total (B)
226,634,982
195,857,886
Written Down Value (A-B)
717,805,639
729,575,801
Accumulated Depreciation
i)
Own Assets
Opening Balance
Add: Charged during the year
Add/Less: Transferred/(Disposal)
Total Own Assets
Leasehold Assets
A Schedule of Property, Plant & Equipment is given in Annexure-A.
MJL Bangladesh Limited
ANNUAL REPORT 2010
19,792,433
-
B.
C.
704,327,032
-
Total (A)
ii)
925,433,688
Leased Assets
Opening Balance
60
31.12.2010
4.
31.12.2010
31.12.2009
Taka
Taka
1,963,228
1,963,228
-
-
1,963,228
1,963,228
Opening Balance
369,221
238,274
Add: Charged during the year
130,947
130,947
Total Accumulated Depreciation (B)
500,168
369,221
1,463,060
1,594,007
Opening balance
121,679,139
10,317,698
Add: Addition during the year
598,683,437
111,361,441
720,362,576
121,679,139
49,998,994
49,998,994
2,500,000
-
52,498,994
49,998,994
49,998,994
49,998,994
2,500,000
-
Raw materials (Note: 7.1)
217,058,566
198,729,400
Finished goods (Note: 7.2)
433,593,582
469,029,095
Goods in transit (Note: 7.3)
388,219,578
243,850,056
1,060,310
-
1,039,932,037
911,608,552
Intangible Assets
A.
Cost
Opening Balance
Add: Addition during the year
Total Cost (A)
B.
Accumulated Depreciation
i)
Own Assets
C.
Written Down Value (A-B)
A Schedule of Intangible Asset is given in Annexure-B.
5.
Capital Work in Progress
5.1 Capital Work in Progress consists of acquisition of Land,
preparation of Ware House in Dhaka, Chittagong, Tongi
and also installation of Grease Plant in Chittagong.
6.
Investments
Investments in Bonds (Note : 6.1)
Investments in Private placement of IPO shares (Note : 6.2)
6.1 Investments in Bonds
Investments consist of ACI 20% Convertible Zero Coupon Bond
6.2 Private placement in IPO shares
Investments consist of IPO Share of Westin Hotel
7.
Inventories
Work-in-Progress (Note: 7.4)
MJL Bangladesh Limited
ANNUAL REPORT 2010
61
7.1
Add: Purchase during the year
Less: Consumption during the year
Add: Purchase during the year
Less: Consumption during the year
Add: Addition during the year
Less: Transferred during the year
Add: Addition during the year
Less: Transferred during the year
89,288,797
1,108,835,252
925,788,431
1,307,564,653
1,015,077,228
1,090,506,087
816,347,828
217,058,566
198,729,400
469,029,095
668,638,116
1,554,827,313
1,161,322,144
2,023,856,408
1,829,960,260
1,590,262,826
1,360,931,165
433,593,582
469,029,095
243,850,056
308,760,309
1,288,591,733
255,851,226
1,532,441,789
564,611,535
1,144,222,211
320,761,479
388,219,578
243,850,056
-
-
1,060,310
-
1,060,310
-
-
-
1,060,310
-
Receivable from Mobil Jamuna Fuels Limited (Note: 8.1)
37,274,211
23,538,261
Accrued Interest Receivable
58,129,381
32,567,165
Receivables (Note: 8.2)
56,768,937
28,275,131
Bank Guarantee Margin
25,347,599
9,329,834
177,520,128
93,710,391
Receivables
8.1
62
198,729,400
Work-in-Progress
Opening balance
8.
Taka
Goods in transit
Opening balance
7.4
Taka
Finished goods
Opening balance
7.3
31.12.2009
Raw materials
Opening balance
7.2
31.12.2010
MJL Bangladesh Limited
ANNUAL REPORT 2010
Mobil Jamuna Fuels Limited (MJFL) whose work station is currently at Mobil House. Sometimes,
MJL Bangladesh Limited incurs expenses on behalf of MJFL and subsequently reimbursed by
MJFL through current account named Receivable from Mobil Jamuna Fuels Limited.
8.2
"MJL Bangladesh Limited (MJLBL) exports finished lubricants to Nepal which comprise
of lubricants for private & commercial vehicles and industrial lubricants. Once the
importer places order of certain product, an invoice is generated for an agreed price and
quantity and provided to importer for opening of Letter of Credit (L/C). Upon receipt of
L/C, MJLBL then produces commercial invoice, packing list and EXP Forms for export
of products. The export takes place upon legitimate assessment by Customs Authority .
As per L/C terms the original shipping documents are required to be submitted to reach at
importer s bank within 15 (fifteen) to 21 (twenty one) days of shipment of product. The L/Cs
opened at importer s end are usually sight L/Cs and once clean document for shipment are
accepted at importer s end through bank, the importer s bank releases funds as per terms and
conditions endorsed within the L/C. The payment usually takes few days to reflect the account
of MJLBL but once a certain quantity of product is launched for export, it is treated as Sale and
reflects in Receivables portion the book of MJLBL. "
9.
31.12.2010
31.12.2009
Taka
Taka
2,408,053
3,004,579
Advance to suppliers
23,562,455
22,159,502
Prepaid expenses
18,695,116
3,259,137
Security deposits
839,000
628,500
Advances, Deposits and Prepayments
Advance to employees
VAT rebate receivables
95,863,270
31,039,416
141,367,895
60,091,133
590,664,148
384,877,311
10. Investment
Investments on Fixed Deposit (Note: 10.1)
Investments on Mutual Funds (Note: 10.2)
50,000,000
50,000,000
640,664,148
434,877,311
24,000,000
66,646,186
Hongkong & Shanghai Banking Corportion Ltd.
-
45,691,875
Dhaka Bank Limited
-
122,070,500
43,051,951
39,173,750
Delta Brac Housing Limited
123,612,197
111,295,000
Union Capital Limited
300,000,000
-
EC Securities Ltd.
100,000,000
-
590,664,148
384,877,311
10.1 Investments in Fixed Deposit
Name of the Bank
Prime Bank Limited
IDLC Finance Limited
MJL Bangladesh Limited
ANNUAL REPORT 2010
63
31.12.2010
31.12.2009
Taka
Taka
10.2 Investments in Mutual Fund
Investments consist of Prime Bank 1st ICB AMCL Mutual Fund
50,000,000
50,000,000
10.3 Investments have been valued at Costs. Investments
in Mutual funds are locked for six months which has
expired on 06 March 2010.
11. Cash and Cash Equivalents
Cash in hand
Cash at bank (Note: 11.1)
298,187
16,718,429
1,242,933,185
105,839,096
1,243,231,372
122,557,525
11.1 Cash at bank
Bank Name & A/c Type
Hongkong & Shanghai Banking Corportion Ltd- CD
-
23,588,191
Hongkong & Shanghai Banking Corportion Ltd- STD
386,772
8,278,845
Hongkong & Shanghai Banking Corportion Ltd- USD
8,307,580
4,377,927
Standard Chartered Bank-CD
1,498,357
-
Standard Chartered Bank-STD
2,572,870
13,418,744
Standard Chartered Bank-USD
52,672
50,526
-
501,806
Commercual Bank of Ceylone PLC-STD
388,849
396,685
Dhaka Bank Limited-STD
179,981
177,060
Prime Bank Limited-CD
310,440
99,305
Trust Bank Limited-CD
Premier Bank Limited-CD
CITI Bank NA-CD
CITI Bank NA-STD
AB Bank Limited-CD
Brac Bank Limited (Escrow)
12.
969,816
969,816
8,807,878
53,752,503
224,959
223,808
43,010
3,882
1,219,190,000
-
1,242,933,185
105,839,096
10,000,000,000
10,000,000,000
263,300,000
263,300,000
1,052,400,000
1,052,400,000
87,500,000
87,500,000
1,403,200,000
1,403,200,000
Share capital
Authorised:
1,000,000,000 ordinary shares of Tk.10 each
Issued, called and paid-up:
26,330,000 ordinary shares of Tk.10 each fully paid-up in cash
105,240,000 ordinary shares of Tk.10 each fully paid-up for
Stock Dividend
8,750,000 ordinary shares of Tk.10 each fully paid-up for
consideration other than cash
64
MJL Bangladesh Limited
ANNUAL REPORT 2010
Details of shareholdings are as under:
Name of the shareholder
No. of share
% of holding
Amount
Amount
EC Securities Limited
105,220,000
74.985
1,052,200,000
1,052,200,000
35,080,000
25.000
350,800,000
350,800,000
Jamuna Oil Company Limited
Parkesine Products Ltd.
4,000
0.003
40,000
40,000
Azam J. Chowdhury
4,000
0.003
40,000
40,000
Marina Yasmin Chowdhury
4,000
0.003
40,000
40,000
Tanjil Chowdhury
4,000
0.003
40,000
40,000
Dilruba Chowdhury
4,000
0.003
40,000
40,000
140,320,000
Slab wise number of shares
No. of
shareholders
100 1,403,200,000 1,403,200,000
No. of shares
% of holding
% of holding
From 500 to 5,000
5
20,000
0.01
0.01
Above 1,000,000
2
140,300,000
99.99
99.99
7
140,320,000
100
100
13. Share Money Deposits
The amount represents subscription from 231 Eligible Institutional Investors, who have subscribed in
20% of the offer i.e. 8,000,000 ordinary shares of Tk. 10.00 each under Book Building Method at a price
of Tk. 152.40 per share, totalling to Tk. 1,219,200,000
14.
31.12.2010
31.12.2009
Taka
Taka
Retained Earnings
Opening retained earnings
120,390,653
775,843,262
Add: Total Comprehensive Income after tax during the year
508,337,317
343,251,789
628,727,970
1,119,095,052
-
141,395,601
628,727,970
1,260,490,653
-
87,700,000
628,727,970
1,172,790,653
-
1,052,400,000
628,727,970
120,390,653
Add:Tax Holiday Reserve transferred (Note: 14.1)
Less: Dividend paid
Less: Transfer for declaration of Interim Stock dividend for the
year 2009; (3 bonus shares for 1 existing share)
MJL Bangladesh Limited
ANNUAL REPORT 2010
65
31.12.2010
31.12.2009
Taka
Taka
14.1 Tax holiday reserve
Opening Balance
-
141,395,601
Add: Current year's Retained Earnings
-
-
-
141,395,601
-
(141,395,601)
-
-
Less: Transfer to Retained Earnings
14.2 Tax holiday reserve was created using appropriate rate of income as determined by the
Income Tax Ordinance 1984 u/s 46A. The company has enjoyed tax holiday benefit for lube oil
blending plant for five years commencing from 1 July 2003 which has expired on 30 June 2008
and subsequently the balance has been transferred to Retained Earnings.
31.12.2010
Taka
15.
Deferred Tax Liabilities
Carrying
Amount
Property Plant and Equipment-Own
Temporary difference
113,039,949
295,966,335
731,530
343,863
387,666
(2,006,689)
-
(2,006,689)
407,731,125
113,383,813
294,347,312
Applicable Rate
37.5%
Deferred Tax Liability/(Asset) as on 31 December 2010
110,380,242
Deferred Tax Liability/(Asset) as on 31 December 2010
110,380,242
Deferred Tax Liability/(Asset) as on 31 December 2009
110,851,587
Deferred Tax Income for the year ended 31 December 2010
66
Tax Base
409,006,284
Intangible Assets
Gratuity
Taxable/
(Deductable)
Temporary
Difference
MJL Bangladesh Limited
ANNUAL REPORT 2010
(471,345)
31.12.2009
Taka
Taxable/
(Deductable)
Temporary
Difference
Carrying
Amount
Tax Base
425,233,655
130,075,113
295,158,542
797,003
687,727
109,276
(1,178,708)
-
(1,178,708)
424,851,950
130,762,840
294,089,110
9,743,591
8,067,222
1,676,370
797,003
687,727
109,276
(270,524)
-
(270,524)
10,270,070
8,754,949
1,515,122
-
Manufacturing unit
Property Plant and Equipment
Intangible Assets
Gratuity
Sub Total
Trading Unit
Property Plant and Equipment-Own
Intangible Assets
Gratuity
Sub Total
Total Temporary difference
295,604,232
Applicable Rate
37.50%
Deferred Tax Liability/(Asset) as on 31 December 2009
Manufacturing unit
110,283,416
Trading Unit
568,171
Total
16.
110,851,587
31.12.2010
31.12.2009
Taka
Taka
Short term loan
Loan Against Trust Receipt (LATR):
The Hong Kong and Shanghai Banking Corporation Limited
Standard Chartered Bank
Citibank NA
Commercial Bank of Ceylon Limited
277,341,706
83,419,474
13,103,405
174,182,310
120,853,292
57,588,159
421,623
-
411,720,026
315,189,943
Other facilities/Short Term Loan (STL) (revolving loan and post import financing):
The Hong Kong and Shanghai Banking Corporation
Limited
198,839,264
119,957,914
Standard Chartered Bank
200,000,000
-
Citibank NA
300,000,000
277,000,000
698,839,264
396,957,914
1,110,559,290
712,147,858
MJL Bangladesh Limited
ANNUAL REPORT 2010
67
The interest and security details of these facilities are as follows:
Sl.
Type of facility
Interest rate (%)
Nature of security
* Promissory note and letter of continuation.
* Registered first charge over stocks and
book debts
a.
Loan against Trust Receipts
10-12 p.a.
b.
Other facilities (revolving loan
and post import financing)
7.5-11 p.a.
17.
on pari-passu basis.
Standard Chartered Bank-CD
Trust Bank Limited-CD
CITI Bank NA-CD
485,587
-
-
9,713,932
88,360,248
700
9,714,632
25,297,550
79,234,036
-
17,449
668,554
668,554
25,966,104
79,920,039
Opening Balance
271,525,884
244,313,967
Add: Provision during the year
174,035,027
201,406,536
445,560,911
445,720,503
45,000,000
174,194,622
400,560,911
271,525,881
Sundry Creditors
Payable to Mobil Oil Australia Pty. Limited
Provision for Income Tax
Less: Payment/Adjustment during the year
Other Liabilities
Exxon Mobil Asia Pacific Pte. Limited-blending fees Payable
38,596,847
36,853,494
-
11,096,420
Tax payable-deduction from suppliers
3,504,251
58,843
VAT payable-deduction from suppliers
41,675
131,652
6,548,529
1,449,232
Payable to ECSL & Exxon Mobil
Gratuity Payable
Accrued Interest on LATR & STL
7,322,356
912,310
Salary Payable
17,630,380
-
Accurals of operating expenses
27,523,493
33,470,352
786,081
-
101,953,611
83,972,303
Accrued Contract Labour
68
Taka
-
Payable to Exxon Mobil Oil Hong Kong Pte. Limited
20.
Taka
88,845,836
Accounts payable
19.
31.12.2009
Bank Overdraft
Hongkong & Shanghai Banking Corportion Ltd- CD
18.
31.12.2010
MJL Bangladesh Limited
ANNUAL REPORT 2010
2010
21.
Sales
Lubricants
Less: VAT
Manufacturing
Unit
2009
Trading Unit
Total
Total
2,143,326,721
2,260,009,954
4,403,336,675
3,708,966,174
281,999,061
273,388,498
555,387,559
470,888,856
1,861,327,660
1,986,621,456
3,847,949,116
3,238,077,318
0.40
Lubricants (Excluding
VAT)
Locally Blended
Lubricants local sales
1,829,563,626
-
1,829,563,626
1,606,155,415
Imported Lubricants
local Sales
-
1,948,168,085
1,948,168,085
1,594,740,701
31,764,035
38,453,370
70,217,405
37,181,201
1,861,327,660
1,986,621,456
3,847,949,116
3,238,077,318
Export Sales of
Lubricants
22.
31.12.2010
31.12.2009
Taka
Taka
Cost of Goods Sold
Manufacturing Unit:
Opening stock of raw material
Add: Purchase
Less: Closing stock of raw material
Consumption
198,729,400
89,288,797
1,071,463,532
925,788,431
1,270,192,933
1,015,077,228
217,058,566
198,729,400
1,053,134,367
816,347,828
-
1,480,911
1,053,134,367
817,828,739
234,023,329
219,032,218
1,287,157,696
1,036,860,956
-
-
1,287,157,696
1,036,860,956
Adjustments:
Filling gain/( loss)
Raw material used in production
Overhead and operating expenses (Note: 22.1)
Add: Opening stock of Work-in-Progress
Less: Closing stock of Work-in-Progress
Cost of goods manufactured
Add: Opening stock of finished goods
Locally blended lubes available for sale
Less: Closing stock of finished goods
1,060,310
-
1,286,097,385
1,036,860,956
120,335,725
224,780,476
1,406,433,110
1,261,641,432
120,219,479
120,335,725
1,286,213,631
1,141,305,707
MJL Bangladesh Limited
ANNUAL REPORT 2010
69
31.12.2010
31.12.2009
Taka
Taka
Trading unit:
Opening stock
348,693,370
443,857,640
Add: Purchase
1,577,199,033
1,161,322,144
1,925,892,403
1,605,179,784
313,374,103
348,693,370
1,612,518,300
1,256,486,414
2,898,731,931
2,397,792,122
Less: Closing stock
Consumption
22.1 Overhead and operating expenses
The following figures are directly connected to
production.
Packaging materials
114,549,473
113,207,975
Blending fees
40,443,780
35,052,077
Depreciation
22,893,788
22,906,013
2,521,233
250,062
Factory expenses
18,458,915
20,430,155
Employee compensation (Note: 24.1)
Consumable spares
13,581,562
12,748,294
Gratuity Expenses (Note: 24.1)
766,788
270,524
PF Employer's Contribution (Note: 24.1)
492,095
-
Travelling expenses
936,527
724,748
60,803
11,084
Car rental
Employee meal reimbursement
765,489
440,300
Daily refreshments
429,254
236,880
Training
116,582
357,387
Utilities
2,307,016
2,041,701
Postage
169,443
258,578
Printing and stationery
1,487,267
1,692,211
Maintenance and repairing expenses
4,920,379
3,686,836
8,064
-
Jetty usage charges
480,000
500,960
Professional fee
101,161
-
Contract labour
4,974,521
1,916,792
Insurance expenses
3,553,522
3,772,781
Periodical and magazine
4,967
7,772
Ad in Newspaper-Others
700
-
-
(1,480,911)
234,023,329
219,032,218
Govt Fees & Charges
Filling (gain) / loss
70
MJL Bangladesh Limited
ANNUAL REPORT 2010
2010
23. Other income
Financial Income (Note : 23.1)
Other Business Income
(Note : 23.2)
Manufacturing
Unit
2009
Trading
unit
Total
Total
38,159,844
40,728,543
78,888,387
69,213,715
1,528,118
1,588,074
3,116,192
3,925,339
39,687,961
42,316,618
82,004,579
73,139,054
23.1 Financial Income:
Interest on deposit
33,625,017
35,888,458
69,513,475
69,213,715
Dividend Income Mutual Fund
2,418,597
2,581,403
5,000,000
-
Investment IncomeZero Coupon Bond
2,116,230
2,258,682
4,374,912
-
38,159,844
40,728,543
78,888,387
69,213,715
23.2 Other Business Income:
Gain/Loss on Sale of Asset
585,000
-
585,000
-
-
620,500
620,500
1,193,600
Delivery charges
444,057
455,572
899,629
1,605,845
Testing fee
499,061
512,002
1,011,063
1,125,894
Sale of drums
1,528,118
1,588,074
3,116,192
3,925,339
24. Administrative and selling expenses
Employee compensation (Note:
24.1)
37,030,026
39,522,673
76,552,699
73,071,897
Gratuity Expenses (Note: 24.1)
2,095,719
2,236,790
4,332,509
1,178,708
Provident Fund - Employer's
Contribution (Note: 24.1)
1,391,182
1,484,828
2,876,010
1,033,273
Directors' Fees (Note: 24.2)
251,413
268,337
519,750
791,501
Traveling Expenses
7,867,405
8,396,993
16,264,399
10,773,693
Entertainment
1,282,706
1,369,050
2,651,756
1,871,860
Employee training and welfare
1,976,361
2,109,398
4,085,758
4,935,917
12,772,505
13,632,276
26,404,780
23,279,947
604,766
645,476
1,250,242
2,899,451
Telephone, cable and postage
expenses
3,100,148
3,308,832
6,408,979
4,997,541
Membership/Subscription fees
2,202,731
2,351,006
4,553,737
973,274
472,260
504,050
976,310
3,908,375
Transportation, storage and
handling
Utilities
Govt Fees & Charges
MJL Bangladesh Limited
ANNUAL REPORT 2010
71
2010
Manufacturing
Unit
Office supplies
Office repairs and renovation
Rent for property
Sales Incentive expense
Trading
unit
2009
Total
Total
4,026,499
4,297,539
8,324,038
8,408,492
10,895
11,629
22,524
-
4,783,555
5,105,556
9,889,111
8,493,128
844,066
900,884
1,744,950
7,350,483
Legal and professional fees
867,812
926,228
1,794,040
1,439,085
Audit fees
196,753
209,997
406,750
409,001
5,214,215
5,565,206
10,779,421
10,590,939
Insurance expenses
685,820
731,985
1,417,805
1,193,714
Advertisement and
publications
20,983,849
22,396,360
43,380,209
22,290,385
554,191
591,496
1,145,687
1,062,614
Other contract services
Land and city corporation tax
Foreign exchange loss/(gain)
276,559
295,175
571,734
81,233
4,193,271
4,475,537
8,668,808
7,498,563
63,342
67,606
130,947
-
113,748,048
121,404,907
235,152,955
198,533,075
Depreciation
Amortization- ERP SoftWare
24.1
31.12.2010
31.12.2009
Taka
Taka
Salaries & compensations
Allocated To:
Overhead and operating expenses
Employees' compensation
Contract Labor
14,840,445
13,018,818
4,974,521
1,916,792
19,814,966
14,935,610
Employee compensation
83,761,219
75,283,878
Contract Labor
10,779,421
10,590,939
Administrative and selling expenses
Directors' Fees
24.2 Directors fees consists of fees for attending BOD meetings.
72
MJL Bangladesh Limited
ANNUAL REPORT 2010
519,750
791,501
95,060,390
86,666,318
114,875,356
101,601,928
25.
31.12.2010
31.12.2009
Taka
Taka
Financial Charges
Interest on short term loan
43,344,674
46,262,386
89,607,060
55,534,536
646,268
689,771
1,336,040
3,404,129
-
-
-
442,598
Bank charges
Financing expense for capital lease
IPO Expenses
11,234,244
11,990,468
23,224,711
-
55,225,186
58,942,625
114,167,811
59,381,263
3,251,127,970
1,523,590,653
140,320,000
35,080
23.17
43,431.89
26. Ratios:
26.1
Net Asset Value (NAV)
Net Assets (Total Assets- Liabilities)
Number of ordinary shares outstaning (Denominator)
Net Asset Value (NAV) per share
Restated:
Net Assets (Total Assets- Liabilities)
1,523,590,653
Number of ordinary shares outstaning (Denominator)
140,320,000
Net Asset Value (NAV) per share
26.2
10.86
2010
2009
Taka
Taka
Earnings per share (EPS)
Net profit after tax (Numerator)
508,337,317
343,251,789
Number of ordinary shares outstanding (Denominator)
140,320,000
35,080
3.62
9,784.83
Earnings per share (EPS)
Restated:
Net profit after tax (Numerator)
343,251,789
Number of ordinary shares outstanding (Denominator)
140,320,000
Earnings per share (EPS)
2.45
26.3 Net Operating Cash Flow Per Share (NOCFPS)
Net Operating Cash Flows
196,782,744
547,548,393
Number of ordinary shares outstaning (Denominator)
140,320,000
35,080
1.40
15,608.56
Net Operating Cash Flows per share
Restated:
Net Assets (Total Assets-Intangible assets- Liabilities)
547,548,393
Number of ordinary shares outstaning (Denominator)
140,320,000
Net Asset Value (NAV) per share
3.90
MJL Bangladesh Limited
ANNUAL REPORT 2010
73
27.
2010
2009
Taka
Taka
14,840,445
13,018,818
Payroll and other payments to employees
Payroll
Cost of Goods Manufactured
Employees' compensation
Contract labour
4,974,521
1,916,792
19,814,966
14,935,610
83,761,219
73,071,897
Admin & selling Expenses
Employees' compensation
Directors' Fees
Other contract services
519,750
791,501
10,779,421
10,590,939
95,060,390
84,454,337
114,875,356
99,389,947
5,099,297
1,449,231
Less:
Gratuity
Accrued Contract Labour
28.
Add: Opening Receivables
Less: Closing Receivables
91,359,598
97,940,716
3,847,949,116
3,238,077,318
28,275,131
26,543,690
3,876,224,248
3,264,621,008
67,082,862
28,275,131
3,809,141,386
3,236,345,876
117,746,524
132,826,719
2,664,708,602
2,178,759,904
2,782,455,126
2,311,586,624
68,108,877
119,195,756
2,714,346,249
2,192,390,868
911,608,552
1,066,687,222
1,802,737,697
1,125,703,646
1,039,932,037
911,608,552
2,842,669,734
2,037,312,198
62,528,752
90,552,722
2,762,179,775
1,930,529,710
144,773,324
62,528,752
2,924,914,306
2,009,288,227
Cash Paid to Suppliers for Raw Materials:
Opening Balance of Creditors & Other Liabilities (Note: 29.2)
Add: Expenses during the year (Note: 29.1)
Less: Closing Sundry creditors and other liabilities (Note: 29.3)
Less: Opening Inventory (Note: 7)
Add: Closing Inventory (Note: 7)
Less: Opening Accounts Receivable, Advances, deposits and
prepayments (Note: 29.4)
Add: Closing Accounts Receivable, Advances,
deposits and prepayments (Note: 29.5)
74
1,449,231
Cash Received from Sales:
Sales
29.
786,081
23,515,758
MJL Bangladesh Limited
ANNUAL REPORT 2010
2010
2009
Taka
Taka
29.1 Expenses during the year
Cost of Goods Sold
Less: Overhead and operating expense
2,898,731,931
2,397,792,122
234,023,329
219,032,218
2,664,708,602
2,178,759,904
68,920,111
30,964,594
668,554
668,554
17,449
17,449
69,606,115
31,650,597
29.2 Opening Balance of Accrual - Creditors & Other Liabilities
Sundry creditors
Accounts payable
Payable to Mobil Oil Australia Pty Limited-Oil testing fees
Payable to ExxonMobil Oil Hong Kong Pte. Limited
Other liabilities
ExxonMobil Asia Pacific Pte. Limited-blending fee
36,853,494
85,398,648
Payable to ECSL & Exxon Mobil
11,096,420
11,096,420
Tax payable-deduction from suppliers
58,843
4,590,202
VAT payable-deduction from suppliers
131,652
90,852
48,140,409
101,176,122
117,746,524
132,826,719
25,297,550
79,234,036
668,554
668,554
29.3 Closing Sundry creditors and other liabilities
Sundry creditors
Accounts payable
Payable to Mobil Oil Australia Pty Limited-Oil testing fees
Payable to ExxonMobil Oil Hong Kong Pte. Limited
-
17,449
25,966,104
79,920,039
38,596,847
36,853,494
Other liabilities
ExxonMobil Asia Pacific Pte. Limited-blending fee
Payable to ECSL & Exxon Mobil
-
11,096,420
Tax payable-deduction from suppliers
3,504,251
58,843
VAT payable-deduction from suppliers
41,675
131,652
42,142,773
48,140,409
68,108,877
128,060,448
MJL Bangladesh Limited
ANNUAL REPORT 2010
75
2010
2009
Taka
Taka
29.4 Opening Accounts Receivable, Advances, deposits and prepayments
Accounts receivable
Receivables
9,329,834
9,329,834
Advances, deposits and prepayments
Advance to suppliers
22,159,502
8,552,881
VAT rebate receivable
31,039,416
81,999,842
53,198,918
90,552,722
62,528,752
90,552,722
25,347,599
9,329,834
25,347,599
9,329,834
23,562,455
22,159,502
29.5 Closing Accounts Receivable, Advances, deposits and
prepayments
Accounts Receivable
Receivables
Advances, deposits and prepayments
Advance to suppliers
VAT rebate receivable
30.
95,863,270
31,039,416
119,425,725
53,198,918
144,773,324
62,528,752
Opening Provision for operating expenses
33,470,352
4,418,346
Add: Expenses during the year (Note: 29.1)
322,607,384
289,219,999
356,077,737
293,638,345
27,523,493
33,470,352
328,554,244
260,167,992
30,430,477
25,705,249
298,123,767
234,462,744
59,216,380
30,430,476
357,340,147
264,893,220
Cash Paid for Admin & Selling Expenses
Less: Closing provision for operating expenses
Less: Opening Accounts Receivable, Advances, deposits and
prepayments (Note: 29.2)
Add: Closing Accounts Receivable, Advances, deposits and
prepayments (Note: 29.3)
76
MJL Bangladesh Limited
ANNUAL REPORT 2010
2010
2009
Taka
Taka
30.1 Expenses during the year
Total Expenses
469,176,284
419,046,204
Less: Depreciation
31,562,597
30,273,630
Less: Amortization
130,947
130,947
437,482,740
388,641,626
Less: Employees compensation
114,875,356
99,421,628
322,607,384
289,219,999
3,004,580
4,511,363
-
57,933
Prepaid expenses
3,259,137
5,551,024
Security deposits
628,500
969,510
30.2 Opening Accounts Receivable, Advances, deposits and
prepayments
Advance to employees
Claim receivable-insurance
Receivable from Mobil Jamuna Fuels Limited
23,538,261
14,615,418
30,430,477
25,705,249
2,408,053
3,004,579
-
-
Prepaid expenses
18,695,116
3,259,137
Security deposits
839,000
628,500
37,274,211
23,538,261
59,216,380
30,430,476
30.3 Closing Accounts Receivable, Advances, deposits and
prepayments
Advance to employees
Claim receivable - insurance
Receivable from Mobil
Jamuna Fuels Limited
31.
Finance Expenses Paid
Opening Balance of Accrued Finance Charges
Add: Expenses during the year
Less: Closing Balance of Accrued Finance Charges
912,310
-
114,167,811
59,381,263
115,080,121
59,381,263
7,322,356
912,310
107,757,765
58,468,953
MJL Bangladesh Limited
ANNUAL REPORT 2010
77
32.
Taka
271,525,884
244,313,966
Add: Provision made during the year
174,035,027
201,406,536
445,560,911
445,720,502
400,560,911
271,525,881
45,000,000
174,194,621
266,030,100
172,045,231
(221,030,100)
2,149,391
354,548,118
266,030,100
133,518,018
268,179,491
Opening Balance of Accrued Interest Receivable
32,567,165
69,541,793
Add: Income during the year
78,888,387
69,213,715
111,455,552
138,755,508
Add: Closing Advance income tax
Finance Income received
Less: Closing Balance of Accrued Interest
58,129,381
32,567,165
53,326,172
106,188,343
-
-
2,531,192
3,925,339
2,531,192
3,925,339
-
-
2,531,192
3,925,339
Other Business Income Received
Opening Balance of Other Business Income
Add: Income during the year
Less: Closing Balance of Other Business Income
35.
Taka
Opening Balance of of Corporate Tax Payable
Less: Opening Advance income tax
34.
2009
Income Tax Paid
Less: Closing Balance of Corporate Tax Payable
33.
2010
Related party disclosures
i) Related party transactions
During the year, the company carried out a number of transactions with related parties in the normal
course of business and on an arms' length basis. The name of these related parties, nature of these
transactions and their total value have been set out in accordance with the provisions of BAS 24:
Related Party Disclosure.
Nature of
Relationship
Transaction
value (Taka)
(Outstanding)/
Receivable
balance
on 30.12.2010
(Taka)
Additive purchase
Group company
115,766,761
-
East Coast Trading (Pvt) Ltd. Additive purchase
Group company
239,570,066
-
Name of the party
EC Distribution Ltd.
78
MJL Bangladesh Limited
ANNUAL REPORT 2010
Nature of Transactions
Name of the party
Jamuna Oil Company Ltd.
Nature of Transactions
Sale of finished
products
Nature of
Relationship
Shareholder
Transaction
value (Taka)
(Outstanding)/
Receivable
balance
on 30.12.2010
(Taka)
606,308,251
-
Diessel Purchase
Shareholder
5,023,980
-
Mobil Jamuna Fuels Ltd.
Payments borne by MJL
Bangladesh Limited
Group company
13,735,950
37,274,211
Parkesine Products Ltd.
Supplying of Molds and
Sub - Molds for Grease
Plant
Shareholder
17,886,376
-
ii) Particulars of directors of MJL Bangladesh Limited as at 31 December 2010:
Name
BOD of MJL
Bangladesh
Limited
Entities where they have
interests
Directorship/Sponsorship/Ownership with
other companies
Mr. Mohammad Chairman
Mejbahuddin
Jamuna Oil Company Ltd. Mobil Jamuna Fuels Limited
Titas Gas Transmission & Distribution
Company Ltd.
Karnaphuli Fertilizer Co. Ltd.
Bangladesh Gas Fields Co. Ltd.
Bangladesh Petroleum Exploration &
Production Co. Ltd.
Mr. Azam J
Chowdhury
Managing
Director
"EC Securities Ltd.
Prime Bank Ltd."
Mr. Mizanur
Rahman
Director
Jamuna Oil Company Ltd. Mobil Jamuna Fuels Limited
Jamuna Oil Company Limited
Mr. Abdul
Muyeed
Chowdhury
Director
EC Securities Ltd.
Mobil Jamuna Fuels Limited
Tiger Tours Limited
BRAC BDMail Network Limited
Pioneer Insurance Company Limited
Mr. Md. Aminur
Rahman
Director
EC Securities Ltd.
Mobil Jamuna Fuels Limited
East Coast Shipping Lines Ltd.
East Coast Trading (Pvt.) Ltd.
EC Distribution Ltd.
Nordic Woods Limited
Surma Oil Company Limited
Bangladesh Trade Syndicate Ltd.
The Consolidated Tea & Lands Co.
(Bangladesh) Ltd.
Mobil Jamuna Fuels Limited
Greenways Industries (BD) Ltd.
Clean Fuel Filling Station Ltd.
EC Bulk Carriers Ltd.
Baraoora (Sylhet) Tea Co. Ltd.
Central Depository Bangladesh Ltd.
MJL Bangladesh Limited
ANNUAL REPORT 2010
79
Name
Mr. Q. M.
Shariful Ala
36.
BOD of MJL
Bangladesh
Limited
Entities where they have
interests
Directorship/Sponsorship/Ownership with
other companies
Director
EC Securities Ltd.
Delta BRAC Housing Finance Corp. Ltd.
BRAC Bank Limited
Mobil Jamuna Fuels Limited
Capital Expenditure Commitment
37.1
As on 31 December 2010 MJL Bangladesh Limited has the following material commitments for
capital expenditures:
Figures are in
Taka
Particulars
3,246,382
Tongi Warehouse
213,838
Chittagong Warehouse
Grease Plant
2,646,202
Base Oil Tank
5,593,978
11,700,399
Total
37.
Other Commitments and Contingencies
37.1
37.1 Commitments
As on 31 December 2010 the company had commitments of Tk.256.985 million in respect of
outstanding letter of credit.
37.2
37.2 Contingencies
As on 31 December 2010 the company had contingencies of Tk.44.982 million in respect of
letter of bank guarantee.
38.
2009
Kilo Barrel in
"000"
Capacity Utilization
Total Production Capacity in Kilo Barrel (159 Ltr.= Barrel)
Capacity Utilised for the year
Note: Licensed Capacity is not applicable for MJLBL
80
2010
Kilo Barrel in
"000"
MJL Bangladesh Limited
ANNUAL REPORT 2010
150.00
150.00
44.35%
38.17%
39.
Disclosure on Managerial Remuneration:
2010
Particulars
40.
Managing
Director
2009
Managers
& others
Total
Managing
Director
3,840,000
15,965,882 19,805,882
House Rent
480,000
3,412,600 3,892,600
480,000
2,925,723
3,405,723
Conveyance
240,000
1,680,450 1,920,450
240,000
1,161,723
1,401,723
Medical
720,000
3,679,400 4,399,400
720,000
3,071,723
3,791,723
Bonus/Incentives
2,880,000
12,008,700 14,888,700
2,560,000
Other Allowances
720,000
1,247,450 1,967,450
720,000
Total salaries and
allowances
8,880,000
37,994,482 46,874,482
3,840,000 14,023,908 17,863,908
1,041,430
1,761,430
8,560,000 30,433,911 38,993,911
2010
2009
Kilo Barrel in
"000"
Kilo Barrel in
"000"
1,075,506,087
816,347,828
Blending Fees in Foreign Currency
Blending Fee
2010
BDT
40,443,780
2009
USD $
Beneficiary
566,785
Exxon Mobil
Asia Pacific
Pte. Limited,
Singapore
BDT
USD $
35,052,077
503,474
Beneficiary
Exxon Mobil
Asia Pacific
Pte. Limited,
Singapore
2010
2009
Taka
Taka
Gross Profit Ratio
Gross profit (Numerator)
Sales (Denominator)
Earnings per share (EPS)
43.
8,209,404 10,769,404
Value of Import at CIF basis
Particulars
42.
Total
Basic Salary
Raw Materials
41.
Managers
& others
949,217,185
840,285,196
3,847,949,116
3,238,077,318
24.67%
25.95%
508,337,317
343,251,789
3,847,949,116
3,238,077,318
Net Profit Ratio
Net profit after tax (Numerator)
Sales (Denominator)
Earnings per share (EPS)
13.21%
10.60%
MJL Bangladesh Limited
ANNUAL REPORT 2010
81
82
MJL Bangladesh Limited
ANNUAL REPORT 2010
5,283,588
845,789
8,720,965
19,792,432
925,433,688
925,433,688
716,062,532
Total Own Assets
Total as on
31 December 2010
Total as on
31 December 2009
209,371,155
19,792,432
2,454,438
5,801,640
8,128,540
3,812,250
1,080,411
32,037,358
Equipment
Machinery
Motor Vehicle
Furniture
137,150
-
28,000
291,535
6,219,932
4,532,000
11,071,467
13,214,517
-
294,598,555
148,445,237
68,992,509
360,767,306
15,510,899
5,081,824
893,396,330
Balance as of
01.01.2010
Rate
%
7,833,195
8,128,540
9,095,838
1,926,200
40,335,441
13,351,668
-
- 925,433,688
(785,500) 944,440,621
2-8.33
4-20
4-10
10-20
6-7
294,598,555
148,473,237 2-8.33
69,706,927 4-20
366,987,239 4-10
19,257,399 10-20
5,081,824
6-7
904,105,180
Balance
as of
31.12.2010
(785,500) 944,440,621
(422,883)
(422,883)
-
-
422,883
(785,500)
(362,617)
Cost
Adjustment/
Addition
(Disposal)
during the
during the
year
year
Building
Trading unit
Land
Own assets
Manufacturing unit
Land
Building
Equipment
Machinery
Motor Vehicle
Furniture
Name of assets
As of 31 December 2010
Schedule of Property, Plant & Equipments
(Formerly Mobil Jamuna Lubricants Limited)
MJL Bangladesh Limited
527,412
746,647
1,674,441
111,440
4,166,233
1,106,293
-
6,731,521
2,875,629
14,542,310
2,920,715
338,788
27,408,963
165,584,257
30,273,630
195,857,887 31,575,196
195,857,887 31,575,196
4,277,107
4,537,475
2,823,242
866,037
22,293,767
9,789,906
-
44,402,874
20,310,983
95,057,593
11,534,081
2,258,588
173,564,119
Balance
as of
01.01.2010
4,479,160
5,284,121
4,497,683
977,477
26,134,640
10,896,198
-
51,134,395
23,511,972
109,587,303
13,669,296
2,597,376
200,500,342
Balance
as of
31.12.2010
-
195,857,886
(798,100) 226,634,982
(798,100) 226,634,982
(325,359)
(325,359)
-
-
325,359
(12,600)
(785,500)
(472,741)
Depreciation
Adjustment/
Charged
(Disposal)
during the
during the
year
year
729,575,801
717,805,638
717,805,638
3,354,035
2,844,419
4,598,155
948,723
14,200,800
2,455,470
-
294,598,555
97,338,841
46,194,955
257,399,935
5,588,103
2,484,448
703,604,838
Written
Down
Value as of
31.12.2010
Annexure-A
MJL Bangladesh Limited
ANNUAL REPORT 2010
83
1,963,228
1,963,228
1,963,228
1,963,228
Total as on 31 December 2010
Total as on 31 December 2009
-
-
Addition
Balance
during
as of
01.01.2010 the year
Intangible Assets
ERP Software
Total Intangible Assets
Name of assets
As of 31 December 2010
Schedule of Intangible Assets
(Formerly Mobil Jamuna Lubricants Limited)
MJL Bangladesh Limited
-
-
-
Adjustment/
(Disposal)
during the year
Cost
Rate
%
1,963,228
1,963,228
1,963,228 6.67%
1,963,228
Balance
as of
31.12.2010
238,274
369,221
369,221
369,221
Balance
as of
01.01.2010
130,947
130,947
130,947
130,947
-
-
-
369,221
500,168
500,168
500,168
1,594,007
1,463,060
1,463,060
1,463,060
Amortization
Written
Adjustment/
Balance
Charged
Down
(Disposal)
as of
during
Value as of
during the
31.12.2010 31.12.2010
the year
year
Annexure-B
84
MJL Bangladesh Limited
ANNUAL REPORT 2010
Shareholders Note
Shareholders Note
MJL Bangladesh Limited
Mobil House, CWS (C) 9, Gulshan-1,Dhaka-1212
Tel:+88(02) 8813597-8,8813661, Fax:+88(02) 9885269
Share Department: House 73, Block-K, Suhrawardy Avenue, Baridhara, Dhaka-1212.
Attendance Slip
I/We do hereby record my/our attendance at the 13th Annual General Meeting of the Company to be held on
Wednesday, September 21, 2011 at 10:30 AM at Bangabandhu International Conference Centre, Agargaon,
Dhaka.
Name of the Member(s) ..........................................................................................................................................................................
BD ID No.
No. of shares being held ....................................................
.................................................................................
Signature of the Shareholder(s)/Proxy
Date. ..........................................
Note: Shareholders attending the meeting in person or by proxy are requested to complete Attendance Slip
and deposit the same at the entrance of the meeting hall.
MJL Bangladesh Limited
Mobil House, CWS (C) 9, Gulshan-1,Dhaka-1212
Tel:+88(02) 8813597-8,8813661, Fax:+88(02) 9885269
Share Department: House 73, Block-K, Suhrawardy Avenue, Baridhara, Dhaka-1212.
Proxy Form
I/We, ...........................................................................................................................................................................................................................................
of .................................................................................................................................................................................................................................................
being a member of MJL Bangladesh Ltd., do hereby appoint Mr./Mrs./Ms. ...................................................................................................
......................................................................................................................................................................................................................................................
of..................................................................................................................................................................................................................................................
as my/our proxy to attend and vote in my/our behalf at the 13th Annual General Meeting of the company to be held on
Wednesday, September 21, 2011 at 10:30 AM at Bangabandhu International Conference Centre, Agargaon,
Dhaka and at any adjournment thereof.
As witness my/our hand this ......................................... day of ......................................... 2011.
-----------------------------(Signature of Proxy)
Revenue
Stamp of
Tk.10.00
BO ID No.
---------------------------------(Signature of Shareholder)
BO ID No.
No. of Shares held: .................................
Notes:
I)
A member entitled to attend and vote in the AGM may appoint a Proxy to attend and vote in his/her behalf.
II)
This Proxy Form, duly filed and stamped must be deposited at the Registered Office of the Company, not later
II)
Signature of the Member(s) must be in accordance with Specimen Signature recorded with the Company.
than 48 hours before the time fixed for the meeting.
...................................................................
(Authorized Signature)
MJL Bangladesh Limited
......................................................
(Signature Verified)
90
MJL Bangladesh Limited
ANNUAL REPORT 2010