Preambles World economy is now hungry after the mighty paw of recession.

Recovery process is still complicated but only one pin point could again change the whole scenario, which is called the Oil Demand. But if we give a glimpse on our country, satisfaction shouldnt come as per the supply-demand situation of Bangladesh. Far-reaching improvement of the power sector is an absolute prerequisite for the overall development of the country. The dependence on exported oil eventually will create uncertainty. Bangladesh needs to reduce its dependency on foreign oil gradually, while explore the feasibility of developing alternative sources of energy. Bangladesh needs to develop an action plan for energy production, transmission, and supply. With the current trend of globalization of trade and technology transfer, it will be possible to adopt technologies that are both efficient and environmentally feasible for Bangladesh in the 21st century. Mobil Jamuna Lubricants Limited (MJLL) is one of the leading oil marketing companies in Bangladesh. Since our country depends on imported lube oil to run industries, MJLL is serving successfully. Now after so many years of successful operations, MJL Bangladesh Limited is in a leading position among other lubricant companies in Bangladesh. And to raise the capital to become more financially vigorous the company is knocking the door to be listed in the bourses very soon after successfully accomplishment of listing procedures in the capital market of Bangladesh. The topic of this Internship Report is Organizational Overview and Insights on the Public Listing of MJL Bangladesh Ltd..

Rationale of the Study I believe the topic I have chosen is important. MJL Bangladesh Limited is a leading lubricant company in our country which has the global reputation on its service quality and successful track record of maximum local distribution in Bangladesh. Recently, the company has going for listing in the two bourses 1. Dhaka Stock Exchange and 2. Chittagong Stock Exchange. This report could be important for two perspectives, number one is Investor Perspective and number two is Organizational Perspective. Because I shall try to cover some important scenario including financial conditions of MJLBL; which could cover the market position of the company and reasons behind of listing. 1

2.0 Scope and Delimitation of the Study As I am working in the Finance & Planning department, there is a bright chance to capture a snap-shot about the organization and the procedures maintained to be listed in the capital market. So, I could produce some significant and reliable information to support my selected topic. The major limitations of this study are given as follows There were some restrictions to have access to the information confidential by concern authority. Sufficient records, publications were not available as per my requirement. Most of the data used in the report are given on an approximate basis due to confidentiality. It is as a major limitation.

3.0 Objective of the study This internship report will be prepared for one broad objective with some specific objectives as well. These are as follows: 3.1 Broad objective: To understand The Organizational Overview and Listing Insights of the company in the bourses. 3.2 Specific objectives: To gather information about the company and financial health. To know about the competitors position in this industry To know the company structure To understand the use of IPO [Initial Public Offering] money proceeds.

4.0 Methodology of the study The study is performed based on the information extracted from different sources collected by using a specific methodology. The methodology is mentioned below: Data collection: Source of data of this report can be divided into two categories: 4.1 Primary Sources: Three months practical participation in internship Face-to-Face conversation with the respective officers and staffs. Direct observations 4.2 Secondary Sources: Relevant books, Research papers, Newspapers and Journals. Internet and various study selected reports. Various publications Websites

5.0 Duration of the Study The duration of the study is not further sufficient to pick the point accurately. It will three month long internship program (January 10th 2011 to April 10th 2011). I will try my best to complete this study within the certain period of time.

INFORMATION ABOUT THE COMPANY MJLBL is the first and only joint venture lube oil marketing company in the downstream petroleum industry of Bangladesh operating since December 1998. The Company was established by global energy giant ExxonMobil Corporation, state-owned Jamuna Oil Company Ltd. and EC Securities Limited, an investment arm of East Coast Group, a renowned business conglomerate in the country having a proven track record of performance in petroleum sector over a period of 20 years. MJLBL was registered with the Board of Investment (BOI) as a foreign investment project in August 1998. The company was subsequently incorporated in Bangladesh in December 1998 under the Companies Act 1994 having its registered office at Mobil House, CWS (C) 9, Gulshan 1, Dhaka 1212. To facilitate customer services and sales promotions, along with Dhaka office four other offices are operating in Chittaogng, Bogra, Jessore and Sylhet with warehouse facilities. Currently, more than 254 employees, both regular and contractual are working in MJLBL. The Company commissioned a state-of-the-art Lube Oil Blending Plant (LOBP) - the first of its kind in the country in May 2003, to produce high quality and technically advanced Lubricants products. The salient features of the Plant, amongst others, include: a fully computerized In-Line Blending System capable of blending over 300 Lube oil formulations from over 50 components of base oil and additive. The Plant is certified by ExxonMobil Quality Integrity Management System (QIMS), ExxonMobil Quality Practice and Guidelines (QP&G) and ISO 9001-2000 from Germinischer Lloyd 4

(GL). It is operated by highly qualified and skilled professionals trained by ExxonMobil with the warranted promise of hundred percent product quality assurances. Mobil (later on merged with Exxon to become ExxonMobil) made its entry in 1997 by forming an alliance with Jamuna Oil Company Limited. Jamuna began marketing Mobil brand lubricants in Bangladesh in late 1997 through its extensive distribution channel under an exclusive distribution agreement. The partner companies enjoy a symbiotic relationship aimed at building brand awareness, sales volume and market share of Mobil brand lubricants. MJL Bangladesh maintains customers satisfaction and helps them get ahead with right choice of lubricant solution. Its expert sales and engineering support service personnel work with utmost dedication to help identify the right products and services for the customers needs. MJLBL has proved its excellence in providing a professional array of quality products and services that satisfy a wide range of customer needs for suitable lubricants in automotive, industrial, marine and aviation sectors. Its wide range of clients includes the first two private power generation projects in Bangladesh. The success of MJLBL has crossed the borders successfully. The company has brought another laurel for the country by pioneering the countrys first ever export of lubricants in March 2007. Since then the companys export growth of lubricants is on the rise and growth rate of export is 453% in 2008 and 58% in 2009.

MJLBL is indeed a glaring example of Technology Transfer in the country in true sense of the term. It has created direct employment opportunity for 150 people, more than 2000 associated jobs, significant value addition in lube oil blending and availability of world-class lubricant products in Bangladesh. Together with the resourcefulness, professionalism and dedication of the directors and employees, the company has been positioned as the premier lube oil blending & marketing company in the country with the ability to consistently satisfy customer preferences, while offering high quality products and services at competitive prices. The Company is an outstanding symbol of successful collaboration between government and private sectors with international oil companies. Above all, MJLBL is dedicated to running safe and environmentally responsible operations, and making significant contribution to countrys sustainable economic prosperity, which are one of the key elements in overall energy security. Founding Partners of Mobil Jamuna Lubricants Ltd ExxonMobil Corporation: ExxonMobil is the worlds largest publicly traded international oil and gas company. Thye hold an industry-leading inventory of global oil and gas resources. They are the worlds largest refiner and marketer of petroleum products. And their chemical company ranks among the worlds largest. But they are also a technology company, applying science and innovation to find better, safer and cleaner ways to deliver the energy the world needs. Over the last 125 years ExxonMobil has evolved from a regional marketer of kerosene in the U.S. to the largest publicly traded petroleum and petrochemical enterprise in the world. Today they operate in most of the world's countries and are best known by their familiar brand names: Exxon, Esso and Mobil. We make the products that drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that lead to thousands of consumer goods. Jamuna Oil Company Limited: Jamuna Oil Company Limited is a Petroleum Marketing Company serving the nation for last four decades. It markets POL products viz. Octane, Petrol, Diesel, Kerosene, Furnace Oil, Bitumen, Lubricants and LP Gas. Originally the name of the Company was Pakistan National Oils Limited, which was formed in the year 1964. After our long cherished independence the Company was renamed as Bangladesh National Oils by an Ordinance of 1972. In the year 1975 Bangladesh National Oils Limited was renamed as Jamuna Oil Company Limited and was registered as a Private Limited Company on 1203-1975 under the Companies Act, 1913 (amended 1994). It has been functioning as a subsidiary of Bangladesh Petroleum Corporation since 1977. As per decision taken by Government and BPC the company was converted into Public Limited Company on 2506-2007. The Head Office of the Company is situated in Chittagong at Agrabad

Commercial Area. It has its own office building named Jamuna Bhaban. Main Installation is located at Guptakhal, Patenga, Chittagong. Products from Eastern Refinery, LP Gas plant and refined imported products are stored here for onward despatch to the upcountry depots and also for local sales. EC Securities: EC Securities Limited (ECSL), a financial intermediary is engaged in capital market since 1997. The company is active in the Capital and Securities market through the Stock Exchanges of the country. Besides maintaining a potential portfolio of its own, the company is also engaged in underwriting of Initial Public Offerings, equity participation and corporate finance. ECSL is prudently trading in securities market and hold substantial shares of successful companies with continuous high earning and dividend payment records. The company also holds shares of private and public limited companies as a long-term investment strategy. ECSL has been operating as the investment arm of the EAST COAST GROUP (ECG). One of the main objectives of the company is in-house Asset Management Function. Other services include providing of Corporate Counseling and strategic planning, project feasibility analysis, selection of potential joint venture partners, capital restructuring and reorganization, arrangement of loan syndication etc. Having a team of professionals, ECSL has been maintaining a constant growth over the years.

Nature of business MJLBL was incorporated on 3 December 1998 as a private Limited Company. However, it started its commercial operation in May 1999. Until July 2003, the company focused on only trading lubricants. Thereafter, a Lube Oil Blending Plant (LOBP) was built and operated to produce high quality and technically advanced Lubricants products. Since then, the company is in the business of blending and marketing of lubricants & greases. 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. 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 worlds leading Synthetic Engine Oils have unsurpassed engine protection with excellent resistance to High Temperatures, LowTemperature performance, Cleaning properties, Low Fuel Consumption as well as greatly increase the engine overall life. Mobil 1 5W 50 Mobil 1 0W 40 Leading manufacturers recommends these lubricants; such as BMW, Daimler Chrysler (Mercedes Benz), Porsche, Volkswagen, Opel etc. 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.

Mobil Super 1000 Mobil Super XHP 20W50 Mobil Special 20W 50 Mobil Super 2T Mobil Super 4T Mobil Outboard Plus Omera Heavy Duty Extra series Omera HD series Leading manufacturers recommends most of these lubricants including Daimler Chrysler (Mercedes Benz), Volkswagen, etc.

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 worlds most leading Synthetic Engine oils have unsurpassed engine protection, superior resistance to high temperatures, great LowTemperature performance, excellent cleaning properties, low fuel consumption as well as increase the over all engine life for of all diesel engines. 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 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. 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 Diesel engine oils have the following builder approvals: Cummins, Detroit Diesel, Caterpillar, Daimler Chrysler, Cummins, Mack, Volvo, MAN, Renault RLD, MTU, EM (Railway engines) etc are recommending the above mentioned lubricants. 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. Omera CNG Special 20W 50 E. 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.

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. Mobil ATF 220 Mobilube HD 80W 90 Mobilube HD 85W 140 Mobilube GX 80W 90 Mobilube GX 140 F. 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 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. Major Lubricant under this product line is as follows: Mobil Antifreeze. 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 are- Extend 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 The products have Cone Drive (USA), Boston Gear, Flender BA 7300 builders approval. Mineral Oils: The extra high performance mineral base gear oils having outstanding 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

I.

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 The above product has approval of leading turbine manufacturers like Siemens, Solar, Alstom etc. and meets the specifications of other leading turbine manufacturers.

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 DTE Oil Extra Heavy The above products approve by, meet or exceed the specifications of the leading turbine manufacturers like Siemens, Solar, Alstom, GEC Alsthom, MHI, Siemens Westinghouse etc. 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 Mobil DTE 19 M Mobil DTE 18M Mobil DTE 16 M Mobil DTE 15 M Mobil DTE 13 M Mobil DTE 11 M The above lubricants can be preferred to use in severe duty industrial applications also. 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 K. 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 select highquality, 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 obil Velocite 6 Mobil Velocite 10 Mobil Velocite HP 24 L. Gas Engine Oils: The next generation of Mobil Pegasus branded high performance gas engine oils are designed to provide todays 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 Oils) Mobil Pegasus 1005 Mobil Pegasus 805 Mobil Pegasus 710 Mobil Pegasus 610 Mobil Pegasus oils are approved, meet or exceed the leading gas engines manufacturers specifications like Caterpillar, Deutz (MWM), GE Jenbacher, Waukesha, Wartsila, Cummins, Rolls Royce-Bergen, mtu, Perkins, MAK, Gas Gen, Chidong etc. 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 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 N. 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 O. Other Industrial Oils: There are various type 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 102 P. 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 Q. Greases: Greases are called magicians 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: 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 equipments 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 Mobil Jet Oil 291

Products/service that accounts for more than 10% of the companys total revenue There are three products of the company, which contribute more than 10% of the companys total revenue. The following table illustrates the total turnover and respective percentage of brands of MJL Bangladesh Limited that accounted for more than 10% of the total revenue: For the Year 1 Jan 2008 to 31 Dec 2008 Brand Name Net Turnover (Tk.) % Mobil Pegasus Oils Mobil Special Mobil Delvac Oils Total Revenue 421,166,022 262,823,577 14.74 9.20 Mobil Pegasus Oils Mobil Special Mobil Delvac Oils 2,857,405,020 100.00 Total Revenue 3,238,077,318 100.00 538,682,6 56 335,483,2 01 16.64 10.36 717,394,4 67 Value contributio n Brand Name For the Year 1 Jan 2009 to 31 Dec 2009 Net Turnover (Tk.) % Value contribution

540,402,282

18.91

22.15

For the Period 1 Jan 2010 to 31 Mar 2010 Brand Name Mobil Special Mobil Pegasus Total Revenue Net Turnover (Tk.) 160,146,048 226,846,086 988,830,476 Value contribution % 16.20 22.94 100.0 0

Associates, subsidiary/related holding company and their Core areas of business Name of the company Relation Nature of business of the company Financia l intermediary providin g merchant banking, securitie s and investment management services Marketin o g f refined petroleum oil, lubricants, L.P. gas.

EC Securities Limited

Holding Company

Jamuna Oil Company Limited

MJLBL is associate of Jamuna Oil Company Limited

Distribution of products/services 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 JOCLs 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 sale the products throughout the country except to the JOCLs customers. Moreover, MJLBL has supplied directly to more than 1000 industrial buyers. Own distribution infrastructure of MJLBL includes main depot in Chittagong, one depot in Dhaka and one depot in Bogra. Other than that two depots are under construction in Chittagong and Dhaka. MJLBLs 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 for irrecoverable debts.

Competitive Condition of Business Oil sector is one of the most sensitive sectors in the economy as the macroeconomic indicators are greatly influenced by the fluctuation of oil prices. The world is under pressure because of increasing price of petroleum products. Bangladesh, being an oil importing country, is facing the challenge to cope with the low purchasing power of the people. 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. 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.

Sources and availability of raw materials and principal suppliers The major raw materials of MJLBL are imported from overseas, mainly Singapore, China, Thailand, Malaysia, India, Switzerland, Netherlands etc. Suppliers are evaluated periodically on supply reliability, quality and prices etc. It is always focused that they meet the benchmarks in terms of quality & reliability with the help of supplier appraisals and track record. Key suppliers include Baseoil supply EM, Afton Chemical India PVT Ltd, Export Center EM, HYRAX OIL SDN BHD, Varian, Metrohm etc. There are also two local suppliers namely East Coast Trading (Pvt) Limited and EC Distribution Limited. Sources of and requirement for power, gas and water or any other utilities Power Source of electricity supply is Bangladesh Power Development Board (BPDB). In addition, there are 2 (two) no. high capacity and well equipped stand by diesel generators of 450 KVA each, which are capable of meeting full load requirement in case of emergency. It is installed at plant site. Water Water supply is ensured from Chittagong WASA. Besides own deep tube well installation process is in progress. Gas Except for ordinary use in office, the company does not required gas for manufacturing operation in any lines. Main Industrial Buyers of Mobil Jamuna Lubricants Limited: NEPC Consortium Power Ltd. Khulna Power Company Ltd. Doreen Power Generation & Systems Ltd. Shahjibazar Power Ltd. Dana Engineers International Ltd. Energypac Power Generation Ltd. Partex Group Youth Group

Description of contract with Principal Customers

MJLBL has an agreement dated 1st January 2000 with Jamuna Oil Company Limited (JOCL) for distribution of Mobil products. The key point is as follows: MJLL agrees not to sell products to customers other than Jamuna at any price lower than the price of a product as stated in the MJLL price list. Jamuna also agrees not to sell products purchased from MJLL to its customers at any price lower than the price it has paid to MJLL.

Description of any material patents, trademarks, licenses or royalty agreements MJLBL has an agreement dated 16 September 2001 with ExxonMobil Lubricants Limited, Singapore for royalty and technical assistance fees @ US $ 0.055 (five and a half Cent) per liter of blended product produced at MJL Bangladesh Plant for using formulations and specification and also for using Mobil trade mark and to distribute and market the said products in Bangladesh. Number of Employees As on March 31, 2010, total numbers of full-time employees of MJLBL are as follows: Particulars Full time employees Contractual employees Outsourcing Part time Employee Total No. of employees 95 02 157 Nil 254

Production/Service rendering capacity and current utilization Item Lubricating Oil Plant Capacity 150,000 barrel/year Utilization (%) 38.76% Shift basis 8 hours/shift No of Shift 1 Shift/day

ISSUE SIZE & PURPOSE OF THE PUBLIC OFFERING IPO size and Issue price Issue Price Premium No. of Premium shares per Share Per share Amount (Tk) (Tk) 1,000,000,00 0 10/-

Particulars Authorized capital

Amount

10,000,000,000/-

Paid up capital To be issued as IPO

140,320,000 40,000,000

10/127/-

117/-

1,403,200,000/-

4,680,000,000/- 5,080,000,000/-

The company is issuing 40,000,000 ordinary shares of Tk. 10/- each through Initial public offering (IPO) at an indicative price of Tk. 127/- each including a premium of Tk. 117/- per share.

Use of IPO Proceeds MJLBL is continuously expanding its business by availing new opportunities focusing on downstream operations. The company intends to raise the fund to undertake a number of potential projects. The potential projects are listed below: I. Establishment of a Liquefied Petroleum Gas (LPG) manufacturing unit at Khulna having rated capacity of 60,000 MT or 4,800,000 nos of cylinder of 12.50 kg each. The estimated cost would be Tk.749.50 million. II. Acquisition of one Ocean going vessel with cargo carrying capacity of 100,000 MT which is assumed to make 5 voyages per year of 65 days each. The estimated cost would be Tk.1,375.21 million. III. Purchasing of one bigha of land within Gulshan area and to construct a sixteen storied building on it for company's corporate office. The estimated cost would be Tk.1,172.56 million IV. Coolant manufacturing plant with rated capacity to produce 60 MT of Coolant oil in a year. The estimated cost would be Tk.212.30 million.

V. Investing in equity of MJL Fuels Ltd which will become a subsidiary of MJLBL after investment- for implementing White oil blending plant with rated capacity to produce 20,000 MT of white oil in a year at Chittagong beside LOBP plant. The estimated cost would be Tk.2,509.50 million.

Implementation Schedule of New Projects: Projected date of completion & commercial operation After 12 months of IPO fund received After 3 months of IPO 2 Crude Oil Tanker 1,375.209 received After 24 months of IPO 3 Land and Corporate Head Office Building 1,172.560 fund received After 12 months of IPO 4 Anti-freeze Manufacturing Plant 212.300 fund received After 24 months of IPO 5 White Oil Processing Plant Total 2,509.5000 fund received 6,019.069

SL # Name of the Project 1 Liquefied Petroleum Gas (LPG) Terminal Plant

Estimated Cost 749.500

Breakdown of Estimated expenses for IPO The following amounts to be paid to the Issue Managers, Underwriters & other costs are estimated as follows: Sl. Description No. Issue Management Fees 1 2 Manager to the Issue Fee VAT against Issue Management Fees Listing Related Expenses: 3 4 Prospectus Submission Fee to DSE DSE & CSE Listing- Initial Fees @ 0.25% on Tk. 100 million and 0.15% on the rest amount of paid up capital; maximum Tk. 2 million for each exchange 5,000 4,000,000 25,400,000 3,810,000 Basis of Fees Amount in Tk. (approx.)

DSE and CSE Annual Fee SEC Fees:

150,000

6 7

Application Fee SEC Consent Fee IPO Commission: Commiss Underwritte ion @0.5% on n fee @ 0.15% on entire offer

10,000 7,620,000

Underwriting Commission Amount

12,700,000

9 10 11 12

Bankers to the issue fee Credit Rating Fees Legal Fees Auditor Certification Fees CDBL Fees and Expenses:

Commission @ 0.1% of Collected 15,240,000 400,000 200,000 350,000 At actual 500,000 100,000 2,500 6,000 @.025% of issue size 1,270,000

13 14 15 16 17

Security Deposit Annual Fee Documentation Fee Connection Fee IPO Fees

Printi ng

an d

Publi Post c Offer Estimated

Expenses: 18 19 20 21 22 23 Publication of Prospectus Abridge Version in 4 daily news paper Printing of Forms Registrar to the Issue Fee Lottery Conduction BUET for Lottery conduction 600,000 200,000 400,000 500,000 500,000 250,000

24 25 26

Binding of All applications Satcom Software for share management Courie r Physic Distribution al of Refund warrant Publication of Notice Stationeries & Others Data entry processingRefun & and d warrant related expenses Grand Total Allotment and

50,000 100,000 100,000

27

250,000

28 29

100,000 50,000

30

12,000,000

86,863,500

Revaluation of companys assets and summary thereof The company has not made revaluation of any of its assets since its inception.

Issue Manager, Underwriters and Bourses: Telephone Number 813597-8 8813661 Telephone Number 9563883

Issuer Company MJL Bangladesh Limited Mobil House, CWS (C) 9, Gulshan-1,Dhaka1212.

Contact Person Mohammad Tipu Sultan FCA Chief Financial Officer

Managers To the Issue Prime Finance & Investment Limited 63, Dilkusha C.A., (3rd Floor), Dhaka-1000

Contact Person Md. Rezaul Haque Senior Vice President & Head of Merchant Banking

Underwriters Grameen Capital Management Limited Grameen Bank Bhaban, Mirpur-2, Dhaka-1216 ICB Capital Management Limited 8, DIT Avenue (14th Floor), Dhaka-1000 Union Capital Limited Noor Tower (5th Floor), 73, Sonargaon Road Dhaka-1205 IDLC Finance Limited Eunoos Trade Center, Level 13, 52-53 Dilkusha C/A,Dhaka-1000 Prime Finance & Investment Limited 63, Dilkusha C.A., (3rd Floor), Dhaka-1000 Mercantile Securities Limited Paramount Heights, 65/2/1, Box Culvert Road, Purana Paltan, Dhaka Karnaphuli Insurance Company Limited Biman Bhaban (3rd Floor), 100 Motijheel C/A, Dhaka-1000, Prime Bank Investment Limited Peoples Insurance Bhaban,11th Floor,

Contact Person Mr. Shieadul Morsalin

Telephone Number 8057618 7160326-27 9662888

9563883 7119654

9564808-11 9555674, 9557688

36Dilkusha C/A,Dhaka-1000 IIDFC Capital Limited Eunoos Trade Centre (Level 7), 52-53 Dilkusha C/A,Dhaka-1000 LankaBangla Finance Limited Safura Tower (Level 11), 20 Kemal Ataturk Avenue, Banani, Dhaka Pubali Bank Limited 26 Dilkusha C/A, Dihaka-1000 Bangladesh Mutual Securities Limited Shareef Mansion (7th Floor), 56-57 Motijheel C/A, Dhaka

9550053

9883701-10 9551614 7169428, 9570624

Stock Exchanges Dhaka Stock Exchange Limited (DSE) 9/F, Motijheel C.A., Dhaka1000 Chittagong Stock Exchange Limited (CSE) CSE Building, 1080 Sheikh Mujib Road, Agrabad,Chittagong4100

Available at DSE Library CSE Library

Telephone Number 9564601-7 (031) 714632-3 (031) 720871-3

www.mobilbd.com,www.primefinance.net,www.secbd.org, www.dsebd.org, www.csebd.com Name and Address of the Auditors ACNABIN Chartered Accountants BDBL Bhaban (13th Floor) 12, Karwan Bazar, Dhaka 1215. Phone: 880-8144347-52 and Fax: 880-8144353

SECTION-III: RISK FACTORS & MANAGEMENT PERCEPTION ABOUT THE RISKS (a) Interest Rate Risk and Management Perception Interest Rate Risk Interest rate risk is concerned with borrowed funds of short term and long term maturity. Volatility in money market and increased demand for loans/investment funds raise the rate of interest. High rate of interest increases the cost of fund of a company and could adversely affect the business and future financial performance. Management Perception MJLBL has always been a cash-rich company having no long term debt and only a little amount of working capital financing. As the company maintains a very low debt-equity ratio, adverse impact of interest rate fluctuation is negligible for MJLBL. Therefore, management perception is that fluctuation of interest rate on borrowing may have very little effect on companys financial performance. (b) Exchange Rate Risk and Management Perception Exchange Rate Risk Exchange rate risk would be relevant to MJLBL since the company often requires making large payment to suppliers through foreign currency for its import of raw materials and other finished products. The price of raw material in the international market is relatively volatile. Unfavorable volatility or currency fluctuation may affect the profitability of the Company. Moreover, it needs to settle royalty payment to ExxonMobil in foreign currency. Due to volatility in foreign currency transactions, MJLBL may face challenges to honor commitments with counterparties. Moreover, adverse exchange rate movements may cause foreign exchange losses to the company. Management Perception Volatility of Taka against Dollar and recent trend of local currency devaluation may expose foreign currency risk. However, MJLBL imports materials and settles royalties in US Dollar which is more stable in the recent years. MJLBL is flexible to adopt any step as and when required with a view to maintaining its profit. The management of the company is confident to significantly cushion the foreign currency risk by strategic purchases and through special arrangements/deals made with financial institutions during settlement of import obligations, making royalty payment and at the time of arrival of proceeds of export of finished products manufactured at the Lube Oil Blending Plant (LOBP).

(c) Industry Risk and Management Perception Industry Risk Industry risk refers to the risk of increased competition from foreign and domestic sources leading to lower prices, revenues, profit margins, market share etc. which could have an adverse impact on the business, financial condition and results of operation. In Bangladesh, lube oil blending and marketing industry is fully dependent on imported raw materials as no backward linkage is yet to be developed in the country. This is significantly considered as Industry risk. Because, the raw material price may fluctuate to a great extent. Management Perception MJLBL has established a strong supply chain management to mitigate this risk. As per terms of agreement, MJLBL has to purchase base oil and additives from EMAPPL and/or its affiliates at prevailing market prices and shall not purchase other sources unless EMAPPL and/or its affiliates are unable to supply the base stock. Beside this, it imports raw materials from the most advanced countries of the world and tests the quality of raw materials in its modern quality control laboratory to ensure the quality of raw material. It has adopted quality assurance policy of ExxonMobils worldwide practice which substantially mitigates industry risk associated with business. (D) Market Risk and Management Perception Market Risk Market risk refers to the risk of adverse market conditions affecting the sales and profitability of the company. Mostly, the risk arises from falling demand for the product or service which would harm the performance of the company. On the other hand, strong marketing and brand management would help the company increase their customer base. Lubricating oil market in Bangladesh is very competitive due to presence of many global giants. Large number of international lubricating oil companies has marketed their products directly or through local agencies. The major market players are BP (British Petroleum) marketed by Meghna Petroleum Ltd., Mobil marketed by MJLBL and Total marketed by Padma Oil Company Ltd. Among all these brands, Mobil is the market leader in Bangladesh in lubricating oil sector. However, the market share of BP and TOTAL has gradually been increasing over the years. Other major international brands include Gulf, Castrol, Servo, Caltex and Fuchs which are also represented by local marketing companies. Management Perception MJLBL has strong brand equity in the local market. Due to its strong foreign affiliation;

and for a growing economy like Bangladesh, there would always be demand for quality lubricating oil and grease product. MJLBL like other company may face strong competition which might take place even after taking the most stringent quality control measures. MJLBL has always been aware of the competitive situation in the market and accordingly, MJLBL is acting as first mover to face any competition.

(e) Technology Related Risk and Management Perception Technology Related Risk Technology always plays an essential role in any business concern that ensures better services to the customers and reduces the cost in various aspects. Any invention of new and more cost effective technology may cause technological obsolescence and negative operational efficiency. Besides, any severe defects in the plant and machinery may have an effect on productivity and profitability due to additional investment for replacement or maintenance. Management Perception MJLBL uses a highly sophisticated computerized system to measure and dynamically control the flow of varieties of Base Stocks and Additives, which are fed into the system in measured quantity as per the formulation to produce desired grade of Lube Oil. Like other ExxonMobil facilities throughout the globe, LOBP also has a state of the art laboratory, which is outfitted with the latest laboratory equipment, such as, ICP, AAS & FTIR Spectrophotometer, Automatic Viscometer, Pour Point Determiner, Density Meter, etc, procured from the worlds most reputed testing and measuring equipment makers, such as, Koehler, Metrohm, Perkin-Elmer, Cannon, Julabo, Anton Parr, Gast, etc. Besides, MJLBL has its own R&D infrastructure and will be able to adapt any new invention with moderate investment. Furthermore, the company has access to international companies for supplying appropriate technology and technical management support for operation of new projects. (f) Risk related to Potential or Existing Government Regulations and Management Perception Risk related to Potential or Existing Government Regulations The Company operates under Companies Act, 1994, Income Tax Ordinance, 1984, Income Tax Rules, 1984, Value Added Tax (VAT) Act, 1991, Value Added Tax (VAT) Rules, 1991, Customs Act, 1969 and other related regulations. Any abrupt changes of the policies made by the regulatory authorities may unfavorably affect the business of the Company. Management Perception Unless any policy change that may negatively and materially affect the industry as a whole, the business of the Company is expected not to be affected significantly. Lubricating Oil industry in Bangladesh is a sector with considerable local demand for differentiated product lines. Therefore, it is highly unlikely that the Government will initiate any fiscal measure having adverse effect on the growth of the industry.

(g) Risk related to Potential changes in Global or National Policies and Management Perception Risk related to Potential changes in Global or National Policies Changes in the existing global or national policies can have either positive or negative impacts for the company. Any scarcity or price hike of raw materials due to changes in policy in the international market might slow down the productivity and profitability. Moreover, the performance of the company would also be hindered due to unavoidable circumstances both in Bangladesh and worldwide like political turmoil. Since the risk involved with the potential changes in global or national policies is a macro factor, it is beyond the control of MJL Bangladesh Limited.

Management Perception The management of MJL Bangladesh Limited is always concerned about the prevailing and upcoming future changes in the global or national policy and shall response appropriately and timely to safeguard its interest. Due to the strong brand equity of the company in the local market; and with deep and profound knowledge, the company will always endeavor to withstand the unexpected changes or any such potential threats. Nevertheless, political stability and a congenial business environment is definitely the best situation in which MJL Bangladesh Limited will achieve its maximum potential. Political turmoil and the disturbance are not good for the economy as a whole and so also for the company. (h) Operational Risk and Management Perception Operational Risk The operational risk is defined by the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The global best practice suggests that any corporate irrespective of its size and business must identify and assess all operational risk against all of its products and services and monitor the same by operationally independent professionals. Management Perception To minimize the operational risk, MJLBL has adopted ExxonMobils operational strategy where the company is committed to safety, security, health and environment. These risks are managed within a framework of ExxonMobil, which is called QIMS (Quality Integrity Management System). QIMS is disciplined, structured and global approach to manage these risks. (i) Employee Turnover Risk and Management Perception Employee Turnover Risk Turnover of key managerial personnel, executives or officers may have adverse impact on business, operating results and future growth. Management Perception MJL Bangladesh Limited places very high priority in developing human resources. Importance is given to relevant on-the-job, in-house and external training programmes, in order to make the work force well equipped with necessary skills. In line with these beliefs, MJL Bangladesh Limited has been offering competitive package to its employees of all ranks to encourage professionalism, stimulate team-work and promote

innovation, reinforced with high ethical standards. The company has reputation for cordial and congenial working environment. The staff turnover ratio is low. The company has been arranging training of its core personnel on a continuous basis to cope with the growing challenges of the changing work environment, increase in customer expectations and growing sophistication of technology and processes. Succession strategy of the company develops alternative leaderships in all areas of its activities. Therefore, the management of MJL Bangladesh Limited feels that company is well prepared to handle any situation attached to Management risk in the foreseeable future.

(j) Distribution Risk and Management Perception Distribution Risk For any company, the most crucial wing is the distribution channel. Wide distribution network and control over the network is essential to make the quality product available to the consumer at right time and price. Management Perception The distribution agreement with Jamuna Oil Company Limited (JOCL), an oil marketing company of Bangladesh Petroleum Corporation (BPC) enables MJLBL to use the large infrastructural facilities of JOCL, which has about 16 depots countrywide. 431 Filling Stations, 852 Agents and 181 Packed Point Dealers. All sorts of industrial, automotive and aviation lubricants are supplied to JOCLs installation plant at Chittagong and subsequently JOCL distributes products throughout the country. Major state owned industries and power plants are supplied through JOCL. Moreover, MJLBL has the infrastructure and capability to supply directly to more than 1000 industrial buyers. Own distribution infrastructure of MJLBL includes main depot in Chittagong, one depot in Dhaka and one depot in Bogra. The company also distributes products through its Jessore and Sylhet offices. (k) Input Risk and Management Perception Input Risk MJL Bangladesh Limited is greatly dependent on imported raw materials and also, supply of those raw materials cannot be ensured locally in case of crisis. Additionally, raw materials are not always readily available for import at will. Prior order requires to be placed before insurance of raw material in bulk could be imported. Availability of raw material may be affected by any uncontrollable event or country risk to transaction or political barrier. Management Perception MJL Bangladesh Limited is currently importing major raw materials from overseas based on quality and competitive prices. MJLBL by default procures its major raw material from EXXONMOBIL Asia Pacific Pte. Ltd. and also has diversified sources to procure other raw material such as additives and labels. The companys highly qualified Logistics & Order Fulfillment (L&OF) team ensures any sort of resource/input risk by strategically ordering at proper time every year.

PLAN OF OPERATION & DISCUSSION OF FINANCIAL CONDITIONS Internal and external sources of cash The internal sources of the cash of the company are the share capital and the share money deposit and the external sources of cash are the bank loans. As on Mar 31, Particulars 2010 (Tk.) Share Capital Reserve & surplus /Retained earnings Total Obligation under Finance Lease Deferred Tax Liabilities Current Liabilities Grand total 2009 (Tk.) 2008 (Tk.) 2007 (Tk.) 1,403,200,00 1,403,200,00 0 0 350,800,000 350,800,000 244,269,225 120,390,653 928,335,284 516,583,385 1,647,469,22 1,523,590,65 1,279,135,28 5 3 4 867,383,385 1,458,287 3,842,599 As on Dec 31, As on Dec 31, As on Dec 31,

110,088,903 110,851,587 1,146,966,78 1,603,109,75 964,352,706 9 4 817,188,482 2,721,910,83 2,781,409,02 2,883,703,32 1,688,414,46

Material commitment for capital expenditure As on 31st March 2010, MJLBL has the following material commitments for capital expenditures. Particulars Tejgaon Warehouse Tongi Warehouse Chittagong Warehouse Grease Plant LOBP Sub-station Total Causes for material changes Comparative Income Statement As of March 31, 2010 100,938,167 7,636,129 1,083,413 37,250,458 845,300 147,753,467

Sales Less: Cost of goods sold Gross profit Add: Other income Less: Admin. & sell. expense Financial charges Profit before tax Less: Tax holiday reserve Less: Provision for Income Tax: Current tax Deferred tax Net Profit after Tax

Jan - Mar 2010 2009 2008 2007 Total Total Total Total 988,830,476 3,238,077,318 2,857,405,020 2,338,479,728 763,215,849 2,397,792,122 2,114,390,889 1,803,530,707 225,614,627 840,285,196 743,014,132 534,949,021 8,579,986 69,213,715 78,821,643 12,552,282 234,194,614 909,498,911 821,835,775 547,501,303 43,568,609 19,631,716 170,994,288 170,994,288 47,878,401 (762,684) 47,115,716 123,878,572 194,607,735 59,381,263 655,509,913 655,509,913 201,406,536 110,851,587 312,258,123 343,251,789 158,447,324 60,079,293 603,309,158 57,409,808 545,899,350 110,638,697 77,694,786 359,167,820 83,985,793 275,182,027

143,017,680 15,792,159 143,017,680 15,792,159 402,881,670 259,389,868

In 2007, net profit after tax (NPAT) of MJLBL was 259.38 million. In 2008, this figure increased to 402.88 million which was 55% more than previous year. Because MJLBL focused the target market with diversified product line. Besides, the company was under tax holiday at that period. However, the NPAT figure decreased to some extent in 2009 because of deferred tax adaptation in the accounting policy. MJLBL quickly recovered last years slight downturn and NPAT was 123.87 million for first quarter of 2010. Seasonal aspect of the Companys business There is no significant seasonal impact on the products of the company.

Known trends, events or uncertainties Uneven competition with competitive companies, any abrupt change in policy of importing countries, labor unrest, political change at home and abroad are known events that may affect the business of the Company.

Change in the assets of the Company used to pay off any liabilities No assets of the company have been used to pay off any liabilities of the company.

Loan taken from or given to holding/parent company or subsidiary company No loan has been taken from or given to holding/parent/subsidiary company. Future contractual liabilities MJLBL neither has any future contractual liabilities nor have any plan to enter into any contractual liabilities other than normal course of business that would impact the financial fundamentals of the company. Estimated Future capital expenditure Particulars Establishment of a Liquefied Petroleum Gas (LPG) manufacturing unit Taka 749.50 1,375.21 1,172.56 212.30 2,509.50 6,019.07

Acquisition of one Ocean going vessel with cargo carrying capacity Purchasing of one bigha of land to construct a sixteen storied building Coolant manufacturing plant Investing in MJLFL as equity participation for implementing White oil manufacturing plant Total

The company will raise money from capital market through issuance of 40,000,000 ordinary shares under book building method. If the money raised from capital market cannot meet whole amount, the rest of the money will be financed from Banks. VAT, income tax, customs duty or other tax liability a) VAT The company does not have any outstanding VAT as on March 31, 2010. b) Income Tax Provision for corporate income tax is made @ 37.5% on estimated taxable profit in accordance with income tax laws. The corporate income tax assessment of the Company is completed up to the assessment year 2007-08 and no income tax is outstanding as on June 30, 2009 except a disputed amount of tax Tk. 23,957,586/only for the assessment year 2005-2006 for which an appeal is pending before the Taxes Appellate Tribunal, Dhaka. The corporate income tax return for the assessment year 2008-2009 was filed under section 82 BB (1) of the Income Tax Ordinance 1984. c) Custom Duty and other Liabilities

The company does not have any outstanding custom duty or similar liabilities as on 31 March, 20 Personnel related scheme The company is currently staffed with 95 full time employees. It strongly believes that human resources are the best assets of the Company. This is why the Company pays first priority in developing human resources through training and providing them with opportunities for rewarding careers that support our leadership position in the lubricant markets. In line with these beliefs, the Company has a well-designed compensation package for the employees to encourage professionalism, stimulate team-work and promote innovation reinforced with high ethical standards. The companys remuneration benefits include salary and allowances, festival bonus. The company also has the following retirement/ terminal benefits for the employees. A. Provident Fund: All permanent employees of MJLBL are entitled to a 10% recognized contributory Provident Fund. B. Gratuity: All permanent employees of the company having minimum five (5) years of continuous service are entitled for gratuity. C. Medical allowance: All permanent employees of the company are entitled to receive medical facilities up to the following maximum limit in the following manner: a. BDT 10,000 per year for the employees who take treatment as outpatient b. BDT 30,000 per year for the employees who are hospitalized

SECTION-VIII: INFORMATION ABOUT DIRECTORS & OFFICERS INFORMATION ABOUT DIRECTORS & OFFICERS Directors of the Company Nominated by Name Mohammad Chairman Mejbahuddin 52 years 28 years Limited Jamuna Oil Company Mizanur Rahman Abdul-Muyeed Director Chowdhury Md. Aminur Rahman Director Q.M. Shariful Ala Director Managing Azam J. Chowdhury Director Information regarding directors and directorship Date of becoming Date of Expiration Director for the first of time Current Term May 5, 2010 March 23, 2009 December 14, 2003 September 14, 2008 September 3, 2002 14th AGM in 2012 14th AGM in 2012 13th AGM in 2011 13th AGM in 2011 15th AGM in 2013 55 years 30 years 50 years 28 years 64 years 35 years EC Securities Limited EC Securities Limited EC Securities Limited 66 years 33 years Director 56 years 31 years Limited EC Securities Limited Designation Age Experience Jamuna Oil Company

Name Mohammad Mejbahuddin Mizanur Rahman Abdul-Muyeed Chowdhury Md. Aminur Rahman Quazi Md. Shariful Ala

Designation

Chairman Director Director Director Director

Director & Azam J. Chowdhury Managing Director March 18, 1999

15th AGM in 2013

Tangible assets per share (As per audited accounts as on 31 March 2010) Amount (Taka) 727,153,566 342,836,911 1,069,990,477 738,512,593 92,969,274 38,021,869 280,272,205 397,629,751 102,953,394 1,650,359,087 2,720,349,564

Asset Property, Plant and Equipments Capital Work-in Progress Total Non-Current Assets [A] Inventories Receivables Advances, deposits and prepayments Advance income tax Investments Cash and cash equivalents Total Current Assets [B] Total Assets [C=A+B] Liabilities Deferred Tax Liabilities Total Non-Current Liabilities[D] Short term loan Sundry creditors Provision for income tax Other liabilities Total Current Liabilities [E] Total Liabilities [F=D+E] Total Net Asset [G=C-F] Number of Shares outstanding [H]

110,088,903 110,088,903 588,334,779 20,997,266 294,404,279 60,616,383 964,352,706 1,074,441,609 1,645,907,955 140,320,000 11.73

Net Tangible Asset Per Share [I=G/H]

Ownership of the Companys securities Number of Name of the Shareholders Address Shares East Coast Group, SWG (8) EC Securitiies Limited Gulshan Avenue, Dhaka-1212 Jamuna Limited Oil Company Jamuna Bhaban, 26,310,000 Agrabad C/A, Chittagong 17, Shayestha Khan Avenue Mr. Azam J. Chowdhury Sector #7, Uttara, Dhaka Mrs. Marina Yasmin 17, Shayestha Khan Avenue 4000 Chowdhury Mr. Tanjil Chowdhury Sector #7, Uttara, Dhaka 17, Shayestha Khan Avenue Ms. Dilruba Chowdhury M/s. Sector #7, Uttara, Dhaka Parkesine Products East Coast Group, SWG (8) 4000 Limited Total Gulshan Avenue, Dhaka-1212 140,320,000 100.00% 0.00285% 4000 0.00285% Sector #7, Uttara, Dhaka 17, Shayestha Khan Avenue 4000 0.00285% 0.00285% 4000 0.00285% 25% 78,915,000 74.98575% Shareholding % of Total

Securities owned by the officers There are no shares owned by the officers of the Company, except Mr. Azam J. Chowdhury, Managing Director & Director of MJL Bangladesh Limited. Name of the Position Address 17, Mr. Azam J. Chowdhur y Managing Director Shayestha Khan #7, 4000 0.00285 % Number % of Total Shareholdin of Shares g

Shareholder Avenue, Sector Uttara, Dhaka

Shareholder holding 5% or more shares Number of Name of the Shareholders Address Shares East Coast Group, SWG (8) EC Securitiies Limited Gulshan Avenue, Dhaka-1212 Jamuna Oil Company Limited Jamuna Bhaban, 26,310,000 Agrabad C/A, Chittagong 25% 78,915,000 74.98% Shareholding % of Total

ECTION-IX: FEATURES OF IPO FEATURES OF IPO Book building method Book Building is a process used by companies raising capital through Public Offerings to aid price and demand discovery. It is a mechanism where, during the period for which the book for the offer is open, the bids are collected from institutional investors at various prices, which are within the price band approved by the Securities and Exchange Commission. The process is directed towards only eligible institutional investors. The bidding is handled through a uniform and integrated automated system of the stock exchanges, or any other organization as decided by the Commission, especially developed for book building method. The offer price for initial public offering is cut-off price, the lowest price offered by the bidders at which the total issue is exhausted.

Market for the securities being offered The issuer shall apply to all the stock exchanges in Bangladesh with 7 (Seven) working days from the date of consent accorded by the Commission to issue prospectus. The issuer will apply at: Dhaka Stock Exchange Limited. 9/E, Motijheel Commercial Area, Dhaka 1000. And Chittagong Stock Exchange Limited CSE Building, 1080, Sheikh Mujib Road, Chittagong 4100

Availability of securities 1. Securities Number of Securities shares 20% of IPO of Ordinary Shares shall be A reserved for 8,000,000 Eligible Institutional Investors 10% of IPO of Ordinary Shares shall be B reserved for Non Resident Bangladeshis 4,000,000 508,000,000 1,016,000,000 amount (Tk.) Total

10% of IPO of Ordinary Shares shall be C reserved for Mutual funds and Collective Investment schemes registered with the Commission D 60% of IPO of Ordinary Shares shall be opened for

4,000,000

508,000,000

24,000,000 Subscription by the General Public Total (A+B+C+D) 40,000,000

3,048,000,000 5,080,000,000

MJL Bangladesh Limited (Formerly Mobil Jamuna Lubricants Limited) Statement of Financial Position As of 31 March 2010 31.03.201 0 Note Taka ASSETS Property, Plant and Equipments Intangible assets Capital Work-in Progress Total Non-Current Assets Inventories Receivables Advances, deposits and prepayments Advance income tax Investments Cash and cash equivalents Total Current Assets Total Assets EQUITY AND LIABILITIES Equity Share capital Retained Earnings Total Equity Liabilities Deferred Tax Liabilities Total Non-Current Liabilities Short term loan Bank Overdraft 13 11 12 6 7 8 9 10 Taka 31.12.2009

3 4 5

727,153,566 1,561,270 342,836,911 1,071,551,7 47 738,512,593 92,969,274

729,575,801 1,594,007 121,679,139 852,848,947 911,608,552 83,396,467

38,021,869 60,091,133 280,272,205 266,030,100 397,629,751 484,876,305 102,953,394 122,557,525 1,650,359,0 87 1,928,560,082 2,721,910,8 34 2,781,409,029

1,403,200,0 1,403,200,00 00 0 244,269,225 120,390,653 1,647,469,2 25 1,523,590,653 110,088,903 110,088,903 110,851,587 110,851,587 712,147,858 9,714,632

14 15

588,334,779 -

Sundry creditors Provision for income tax Other liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities Net Asset Value (NAV)

16 17 18

20,997,266 294,404,279 60,616,383 964,352,706 1,074,441,6 09 2,721,910,8 34

69,606,115 271,525,881 83,972,303 1,146,966,78 9 1,257,818,37 6 2,781,409,02 9 10.85

24.2

11.73

MJL Bangladesh Limited (Formerly Mobil Jamuna Lubricants Limited) Statement of Comprehensive Income For the period from January to March 2010 (Amount in Taka) January to March 2010 Not e Manufacturi ng Unit Sales Less: Cost of goods sold Gross profit Add: Other income 21 19 20 Trading Unit 988,830,4 76 763,215,8 49 225,614,6 27 8,579,9 86 234,194,6 14 763,193,745 594,892,116 168,301,629 1,184,954 169,486,583 Tota l January to March 2009 Total

457,431,234 531,399,242 322,551,470 440,664,378 134,879,764 3,969,102 138,848,865 90,734,864 4,610,885 95,345,748 23,413,820 10,550,105 33,963,925 61,381,823

Less: Administrative and selling expenses Financial charges

22 23

20,154,789 9,081,612 29,236,401

Profit before tax Less: Provision for Income Tax: Current tax Deferred tax

109,612,464 2.7 30,691,490 13 (762,684) 29,928,806

43,568,60 9 27,532,947 19,631,71 7 21,381,595 63,200,32 6 48,914,542 170,994,2 88 120,572,040 47,878,40 1 (762,68 4) 47,115,71 6 123,878,5 72 -

17,186,911 17,186,911 44,194,913 -

33,760,171 33,760,171 86,811,869 -

Net Profit after Tax Other Comprehensive Income Total Comprehensive

79,683,659 -

Income Earning per share (EPS) Earning per share (EPS)Annualized 24 24.1

79,683,659

44,194,913

123,878,5 72 0.88 3.53

86,811,869 0.62 2.47

MJL Bangladesh Limited (Formerly Mobil Jamuna Lubricants Limited) Statement of Changes in Equity For the period from January to March 2010 (Figures in Taka) Share Particulars Capital Balance at 01 January 2009 Total Comprehensive Income for the period Dividend Declared for 2008 Dividend paid for the year 2008 Balance at 31 March 2009 Balance at 01 January 2010 Total Comprehensive Income for the period Balance at 31 March 2010 350,800,000 350,800,000 1,403,200,0 00 1,403,200,0 00 Propose d Dividen d 87,700,000 (87,700,00 0) Tax Holiday Retained Earnings Equity

(Total) Reserve 141,395,6 1,268,038,86 01 775,843,262 3 - 86,811,868.98 86,811,869 - (87,700,000) 141,395,6 1,354,850,73 01 774,955,131 2 1,523,590,65 120,390,653 3 123,878,572 123,878,572 1,647,469,22 244,269,225 5

MJL Bangladesh Limited (Formerly Mobil Jamuna Lubricants Limited) Cash Flow Statement For the period from January to March 2010 January to March 2010 Taka 988,830,476 (19,122,327) (575,183,203) (102,204,695) (17,011,380) (39,242,111) 236,066,759 (221,157,772) 87,246,554 (5,233,588) 17,001,626 (122,143,179) (123,813,079) (9,714,632) (133,527,711) (19,604,131) 122,557,525 102,953,394 24.3 1.68 January to March 2009 Taka 763,193,745 (14,566,058) (74,241,358) (74,644,108) (21,381,595) (30,812,234) 547,548,393 (3,491,621) 18,077,000 (580,000) 34,474,108 48,479,487 (87,700,000) (327,250,484) (2,384,311) (146,513,005) (563,847,800) 32,180,080 90,192,096 122,372,176 3.90

Note 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 Net cash flow from operating activities B. Cash flows from investing activities: Payment against Capital Work-in Progress Encashment of FDR/(Investment in FDR) Acquisition of fixed assets Financial Income received Net cash flow from investing activities C. Cash flows from financing activities: 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 Equivalents at beginning of the period F. Cash & Cash Equivalents at end of the period/year Net Operating Cash Flow Per Share (NOCFPS) 19 25 26 27 28 29

30

Net Operating Cash Flow Per Share (NOCFPS) Annualized 24.4

6.73

15.61

MJL Bangladesh Limited (Formerly Mobil Jamuna Lubricants Limited) Auditors' Report under section 135(1) and paragraph 24(1) of Part -II of Third Schedule of the Companies Act 1994 For the periods from 01 January 2005 to 31 March 2010 We have examined the financial statements of M/s. MJL Bangladesh Limited (Formerly Mobil Jamuna Lubricants Limited) for the years ended 31 December 2005, 2006, 2007, 2008 and 2009 and for the period from 01 January 2010 to 31 March 2010. In pursuance of Section 135(1) under Paragraph 24(1) of Part -II of Third Schedule of the Companies Act 1994 our report is as under
A. Statement of Assets and Liabilities: Amount in Taka

As At 31.03.201 31.12.200 31.12.200 31.12.20 31.12.200 31.12.20 0 9 8 07 6 05 727,153,56 729,575,80 550,478,2 6 1 76 1,561,270 1,594,0071,724,954 342,836,91 121,679,13 10,317,69 1 9 8 1,071,551, 852,848,94 562,520,9 747 7 28

ASSETS Property, Plant and Equipments Intangible Assets Capital Work-in Progress Total Non-Current Assets

581,260, 602,445,5 628,289,1 309 69 06 10,317,6 98 591,578, 602,445,5 628,289,1 007 69 06 398,023, 769 637,082,3 89 12,679,4 03 8,363,335 24,472,3 45,898,45 63 1 122,777, 110,113,4 991 07 205,000, 000 333,882, 932 7,839,030 1,096,836 809,296,6 ,459 12 234,511,8 65 9,330,632 35,841,42 8 92,438,56 8 81,161,59 7 453,284,0 90

738,512,59 911,608,55 1,066,687, Inventories 3 2 222 107,070,9 Receivables 92,969,274 83,396,467 75 130,186,8 Advances, Deposits and Prepayments 38,021,869 60,091,133 74 280,272,20 266,030,10 172,045,2 Advance Income Tax 5 0 31 397,629,75 484,876,30 755,000,0 Investments 1 5 00 102,953,39 122,557,52 90,192,09 Cash and Cash Equivalents 4 5 6 1,650,359, 1,928,560, 2,321,182 Total Current Assets 087 082 ,398 Total Assets EQUITY AND LIABILITIES Equity

2,721,910, 2,781,409, 2,883,703 1,688,414 1,411,742 1,081,573, 834 029 ,326 ,466 ,181 196

Share Capital Share Money Deposit Reserve & Surplus Proposed Dividend Total Equity Liabilities Deferred Tax Liabilities Loan Term Loan (project)

1,403,200, 1,403,200, 350,800,0 000 000 00 11,096,42 0 244,269,22 120,390,65 829,538,8 5 3 64 87,700,00 0 1,647,469, 1,523,590, 1,279,135 225 653 ,284 110,088,90 110,851,58 3 7 -

350,800, 000 350,800,0 00 11,096,4 11,096,42 20 0 456,947, 215,515,5 385 08 59,636,0 00 878,479, 577,411,9 805 28

350,800,0 00 11,096,42 0 2,806,693 35,080,00 0 399,783,1 13

- 6,501,255 72,748,78

Obligation under Finance Lease Total Non-Current Liabilities Current Portion of Long Term Loan Short Term Loan Bank Overdraft Sundry Creditors Advance Received against Sales Provision for Income Tax Dividend Payable Current portion of Lease Obligation Other Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities

- 1,458,287 110,088,90 110,851,58 3 7 1,458,287 588,334,77 712,147,85 1,018,618, 9 8 767 176,415,7 - 9,714,632 43 29,892,49 20,997,266 69,606,115 0 - 1,758,107 294,404,27 271,525,88 244,313,9 9 1 67 - 6,684,000 - 2,384,311 123,042,3 60,616,382 83,972,303 70 964,352,70 1,146,966, 1,603,109 6 789 ,754 1,074,441, 1,257,818, 1,604,568 609 376 ,042 2,721,910, 2,781,409, 2,883,703 834 029 ,326

7 3,842,59 8 400,196 3,842,59 73,148,98 8 6,501,255 3 6,501,25 36,915,18 66,247,53 6 2 2 568,400, 597,126,8 353,658,0 821 39 79 9,616,92 16,910,97 5 9,046,880 3 8,553,15 13,144,54 5 8,285,692 0 104,423, 101,731,0 83,017,29 862 96 0 6,684,00 14,338,00 0 0 2,043,91 1 400,196 857,515 99,868,1 59,985,11 74,805,17 33 3 1 806,092, 827,828,9 608,641,1 063 98 00 809,934, 834,330,2 681,790,0 661 53 83 1,688,414 1,411,742 1,081,573, ,466 ,181 196

MJL Bangladesh Limited (Formerly Mobil Jamuna Lubricants Limited) Statement of Ratio Analysis For the periods from 01 January 2005 to 31 March 2010 The following ratios have been computed from the audited financial statements of M/s. MJL Bangladesh Limited for the period from 01 January 2010 to 31 March 2010 and for the years ended 31 December 2009, 2008, 2007, 2006 and 2005: 31.03.2010 Name of Ratio A. Liquidity Ratios 1 Current Ratio 2 Quick Ratio Times Interest Earned 3 Ratio 4 Debt to Equity Ratio B. Operating Ratios Accounts Receivable 1 Turnover Ratio 2Inventory Turnover Ratio 3 Assets Turnover Ratio C. Profitability Ratios 1 Gross Margin Ratio 2 Operating Income Ratio 3 Net Income Ratio 4 Return on Assets Ratio 5 Return on Equity Ratio 6 Earning Per Share 31.12.200 31.12.200 31.12.200 31.12.200 31.12.200 9 8 7 6 5 Result Result Result Result Result Result % % % % % % 171.14 94.56 875.21 5.64 1063.61 103.35 36.33 22.82 17.14 12.42 4.55 7.52 0.88 168.14 88.66 1171.03 5.47 3882.75 263.03 116.42 25.95 19.82 10.38 12.34 22.53 2.45 144.79 78.25 1054.58 8.37 136.07 86.69 467.69 1.44 97.76 20.80 368.77 1.45 74.47 35.94 118.36 2.33

2668.70 18443.14 23481.18 12095.15 198.22 453.12 248.58 397.10 99.09 138.50 139.11 104.34 26.00 20.55 13.72 13.97 31.50 11.48 22.88 15.28 11.03 15.36 29.53 7.39 19.36 11.84 10.80 15.07 36.84 6.06 17.48 5.65 4.55 4.76 12.88 1.47

Name of Ratio A Liquidity . Ratios Current Assets 1 Current Ratio

January to March 2010 2009 2008 2007 2006 Calculat Resul Calculat Result Calculat Resul Calculat Resul Calculat Resul Calc ion t % ion % ion t % ion t % ion t % 1,650,359 ,087 171.1 4 1,928,560 ,082 1,146,966 ,789 1,016,951 ,531 88.66 168.14 2,321,182 ,398 1,603,109 ,754 1,254,495 ,176 1,603,109 ,754 78.25 144.7 9 1,096,836 ,459 806,092,0 63 698,812,6 89 806,092,0 63 86.69 136.07 809,296, 612 827,828, 998 172,214, 223 827,828, 998 20.80 97.76

Amount in Taka

453,2

964,352,7 Current Liability 06 Current Assets 911,846,4 Inventory 94

608,6

218,7

94.56 964,352,7 1,146,966 Current Liability 06 ,789 Operating Times Interest 170,994,2 655,509,9 Income Earned 88 13 19,537,54 875.2 55,977,13 3 Ratio Interest expenses 6 1 4 92,969,27 83,396,46 Total Debt 4 7 Debt to Total 4 Equity Ratio 5.64 stockholder's 1,647,469, 1,523,590 equity 225 ,653 Operating B. Ratios Accounts 988,830,4 3,238,077 Receivable Gross Turnover 76 ,318 Turnover 92,969,271063.6 83,396,46 1 Ratio Receivables 4 1 7 Inventory Cost of goods 763,215,8 2,397,792 Turnover sold 49 ,122 738,512,5 103.3 911,608,5 2 Ratio Inventory 93 5 52 988,830,4 3,238,077 Assets Gross Turnover 76 ,318 Turnover 3 Ratio 36.33 2,721,910, 2,781,409 Total Assets 834 ,029 C Profitability . Ratios 225,614,6 840,285,1 Grass Profit 27 96 Gross Margin 1 Ratio 22.82 988,830,4 3,238,077 Gross Premium 76 ,318 170,994,2 655,509,9 Operating Profit 88 13 Operating 2 Income Ratio 17.14 Total Operating 997,410,4 3,307,291 Revenue 62 ,033 123,878,5 343,251,7 Profit After Tax 72 89 Net Income 3 Ratio 12.42 Total Operating 997,410,4 3,307,291 Revenue 62 ,033 123,878,5 343,251,7 Profit After Tax 72 89 Return on 4 Assets Ratio 4.55 2,721,910, 2,781,409 Total Assets 834 ,029 123,878,5 343,251,7 Profit After Tax 72 89 Return on 5 Equity Ratio 7.52 Share Holders 1,647,469, 1,523,590 Equity 225 ,653

2 Quick Ratio

608,6

603,309,1 359,167,8 58 20 1171.0 57,208,39 1054. 76,795,82 3 5 58 5 467.69 107,070,9 12,679,40 75 3 5.47 8.37 1.44 1,279,135 878,479,8 ,284 05 2,857,405 2,338,479 ,020 ,728 3882.7 107,070,9 2668. 12,679,40 18443. 5 75 70 3 14 2,114,390 1,803,530 ,889 ,707 1,066,687 198.2 398,023,7 263.03 ,222 2 69 453.12 2,857,405 2,338,479 ,020 ,728 116.42 99.09 138.50 2,883,703 1,688,414 ,326 ,466 743,014,1 32 25.95 2,857,405 ,020 603,309,1 58 2,936,226 ,663 402,881,6 70 2,936,226 ,663 402,881,6 70 2,883,703 ,326 402,881,6 70 1,279,135 ,284 26.00 534,949,0 21 2,338,479 ,728 359,167,8 20 2,351,032 ,010 259,389,8 68 2,351,032 ,010 259,389,8 68 1,688,414 ,466 259,389,8 68 878,479,8 05 22.88

233,207, 63,96 936 63,238,6 368.7 54,04 72 7 8,363,33 5 9,330 1.45 577,411, 399,7 928

1,963,80 1,128 9,580 8,363,33 23481 5 .18 9,330 1,583,64 931,2 8,917 637,082, 248.5 234,5 389 8 1,963,80 1,128 9,580 139.1 1 1,411,74 1,081 2,181 380,160, 663 1,963,80 9,580 233,207, 936 1,970,11 2,772 212,708, 815 1,970,11 2,772 212,708, 815 1,411,74 2,181 212,708, 815 577,411, 928 19.36

197,3

1,128 63,96

19.82

20.55

15.28

11.84

1,131 51,49

10.38

13.72

11.03

10.80

1,131 51,49

12.34

13.97

15.36

15.07

1,081 51,49

22.53

31.50

29.53

36.84

399,7

Earning Per 6 Share

Profit After Tax No. of Shares

123,878,5 72 140,320,0 00 0.88

343,251,7 89 140,320,0 00 2.45

402,881,6 70 35,080,00 0 11.48

259,389,8 68 35,080,00 0 7.39

212,708, 815 35,080,0 00 6.06

51,49

35,08

Projected Earnings 2010(9m) 2,847.22 2,191.95 655.26 67.32 97.86 165.18 2011 5,335.58 3,688.77 1,646.81 74.05 219.57 293.62 2012 7,356.23 5,583.98 1,772.26 274.30 299.05 573.36 2013 8,001.29 6,079.89 1,921.40 300.16 321.55 621.71 Millio n Tk 2014 8,581.82 6,507.66 2,074.16 328.82 344.65 673.48

Sales Cost of Goods Sold Gross Profit Op. Exp: Gen. & Admin Selling Total Operating Expenses

Operating Profit Other Income Dividend income from MJL Fuels Ltd. Total Operating Income Interest on Short Term Loan Total Financial Expenses Income Tax Profit After Tax Number of Shares Earnings per share (Taka)Annualized

490.08 373.18 863.26 64.72 65.03 299.33 498.89 180.32

1,353.19 98.18 1,451.37 46.24 46.55 526.81 878.01 180.32

1,198.90 250.95 1,449.85 13.24 21.55 535.61 892.69 180.32

1,299.69 250.95 1,550.64 46.24 54.55 561.04 935.06 180.32

1,400.68 376.43 1,777.10 8.31 663.30 1,105.50 180.32

3.65

4.87

4.95

5.19

6.13

Ratio Analysis: The Balance Sheet and the Statement of Income are essential, but they are only the starting point for successful financial management. Apply Ratio Analysis to Financial Statements to analyze the success, failure, and progress of your business. Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. To do this compare your ratios with the average of businesses similar to yours and compare your own ratios for several successive years, watching especially for any unfavorable trends that may be starting. Ratio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them. Liquidity Ratio: Current ratio: This ratio measures short term debt paying ability of a company. Current ratio = Total current asset/Total current liability Year Current Asset Ratio 2006 97.76 2007 136.07 2008 144.79 2009 168.14 2010 171.13

180 160 140 120 100 80 60 40 20 0

168.14 136 97.76 144.79

171.13

2006

2007

2008 Current Ratio

2009

2010

The ratio has an increasing trend starting from 2006. Increase in cash and cash equivalent has increased current asset of the company and current liability has decreased in that year because of substantial decrease accounts payable. Quick Ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Quick Ratio = (Current asset-Inventory)- Current Liabilities

Year Quick Ratio

2006 20.80

2007 86.69

2008 78.25

2009 88.66

2010 94.55

Debt To Equity Ratio: Measures how much money a company should safely be able to borrow over long periods of time. Debt To Equity Ratio =Total Debt/Total Equity Year Debt Toquity Ratio 2006 1.44 2007 1.44 2008 8.29 2009 5.47 2010 5.64

Operating Efficiency Ratios Accounts Receivable Turnover Ratio: used to determine whether the company is having trouble collecting on sales it provided customers on credit.

Account receivable turnover = Gross turnover / Receivables. Year Account Receivable Turnover Ratio 2006 234.81 2007 184.43 2008 26.69 2009 38.83 2010 10.64

Inventory Turnover Ratio: This ratio shows how many times in one accounting period the company turns over (sells) its inventory and is valuable for spotting under-stocking, overstocking, obsolescence and the need for merchandising improvement.

Inventory Turnover= Cost of Goods Sold/ Inventory

Year 2006 Inventory Turnover 2.49

2007 4.53

2008 1.98

2009 2.63

2010 1.03

Faster turnovers are generally viewed as a positive trend; they increase cash flow and reduce warehousing and other related costs. We can see from the above graph that the trend is not stable in case of Inventory Turnover. This is because Mobil Jamuna Lubricants Limited is facing some difficulties that causes piled up Inventories.

Total Asset Turnover: Total asset turnover measures how efficiently a company uses its assets to generate sales. Asset turnover ratio = Sales / Total asset Year Total asset turnover 2006 139.11 2007 138.50 2008 99.09 2009 116.42 2010 36.33

Stable position it has decreased in 2007. Though both sales and net asset of the company have increased in last five years it caused decline in the total asset turnover ratio in recent years compared to the previous years. The reason behind the fact is that sales didnt increase in the same proportion as total asset. Profitability Ratio: Gross margin Ratio: calculates how much sales revenue is left after deducting the cost of goods (COGS) on all items sold . It also determine how well a company has performed over time and how consistent it was in generating profits. Year Gross Margin Ratio 2006 29.36 2007 22.88 2008 26.00 2009 25.95 2010 22.82

Operating Income Ratio: ROA (Return on Assets): A measure of the return on total investment in the Bank. Primarily it is an indicator of managerial efficiency. It shows the Profitability of an organization. The formula of ROA are given below: Net income after Tax Total Assets

ROA

100

Year Return Assets Ratio on

2006 15.07

2007 15.36

2008 13.97

2009 12.34

2010 4.55

It measures the profitability of Shareholders equity/investment. The ratio of return on investment is higher in 2008 than 2009. So, in 2009 the return shows downward. The return shows down on total investment. So, the performance of the company is not better than the previous year.

o ROE (Return on Equity): These analysis measures of the return shareholders are earning on their investment in the enterprise. It measures the rate of return following to MJLL shareholders equity. The formula of ROE is given below:

ROE

Net income after Tax Total Shareholder equity

100

Year Return on Equity Ratio

2006 36.84

2007 29.53

2008 31.50

2009 22.53

2010 7.53

It measures the profitability of Shareholders equityinvestment. The ratio of return on investment is higher in 2008 than 2009. So, in 2009 the return shows downward. The return shows down on total investment. So, the performance of the company is not better than the previous year. Calculating Working Capital:

Working Capital is the easiest of all the balance sheet calculations. Here's the formula. Current Assets - Current Liabilities = Working Capital

Year Working Capital

2006

2007

2008

2009

2010

(18,532,386)

290,744,396

718,072,644

781,593,293

686,006,381

Working Capital 1000 800 600 400 200 0 -200 -400 Working Capital 1 2 3 4 5

One of the main advantages of looking at the working capital position is being able to foresee any financial difficulties that may arise. Even a business that has billions of dollars in fixed assets will quickly find itself in bankruptcy court if it can't pay its monthly bills. Under the best circumstances, poor working capital leads to financial pressure on a company, increased borrowing, and late payments to creditor - all of which result in a lower credit rating. A lower credit rating means banks charge a higher interest rate, which can cost a corporation a lot of money over time.

Fixed Asset Turnover Ratio: Fixed Asset turnover measures how efficiently a company uses its assets to generate sales.

Millions

Fixed Asset turnover ratio = Sales / Total fixed asset Year Fixed Asset Turnoer Ratio 2006 1.80 2007 3.26 2008 4.02 2009 5.17 2010 4.50

Fixed asset turnover has increased in 2006. From 2006 the ratio shows an increasing trend up to 2009. As sales and fixed asset is increasing year by year it can be said that Mobil Jamuna Lubricants Limited is efficient in generating sales with reduced fixed asset.

Findings & Recommendation 4.1 Findings from the Analysis

It was found from the previous discussion that the Lube oil market in Bangladesh is purely dominated by Mobil Jamuna Lubricants Limited so far. From Porters five forces model we get to know why Mobil Jamuna Lubricants Limited is operating as a conqueror in the market. The feature that makes MJLL superior than its competitor is that Caterpillar uses only Mobil branded products. It is certainly a huge advantage for Mobil Jamuna Lubricants Limited. And all Bangladeshi Power Plants also use Mobil products. The performance of the Mobil is superior of the lube oil market. But the market of Lube oil is so competitive. In this regard Mobil Jamuna should expand the plant for his existence. The SWOT analysis gives us a clear view regarding MJLLs position in the market. The brand name Mobil is the biggest strength for Mobil Jamuna Lubricants Limited. If anyone speaks of engine oil or lube oil, the name Mobil comes first to peoples mind. The distribution channel is also in favor of MJLL. Though Mobil Jamuna has excellent customer service but also Mobil Jamuna has stay their after sale service accordingly.

Ratio Analysis of ROE, ROA, Sales Turnover, Working capital and current asset of Mobil Jamuna Lubricants Ltd shows that the performance of the company excellent. Ratio analysis shows that the company is a profitable organization. Though Mobil Jamuna is a profitable organization, so it should introduce new product to improve their distribution. Graphical analysis shows that Mobil Jamuna Lubricants Limited is a profitable organization though it has some problems with inventory management. It generates profit and operates its business in a cost-effective approach. So, Mobil Jamuna is always ready for better service, sales and advertisement. Though MJLL happens to be doing the best in this sector in Bangladesh, its competitors are also becoming strong. This is why Mobil Jamuna Lubricants Limited has recently introduced a new brand Omera for CNG use. And it has started exporting products to Nepal as a new dimension of business.

4.2

Recommended Strategies for Improvement:

In this changing market situation Mobil Jamuna Lubricants Limited is going to adopt new strategies. So that it can remain as the market leader. The strategies are as following: Though Mobil Jamuna is a profitable organization but it should consolidate and concentrate on Gas Engine Oil sales to New Independent Power Plants and Captive Power Plants. Mobil products sales and service is always for customer. But in competitive business world, it should improve after sale services to stay ahead of competition Other products like Omera brand should be introduced for expanding business. As MJLL has some problem in inventory system, so it should be follow the following Inventory Depletion

Special drive and with special package sale of products already purchased at higher price Sales Promotion Adjustment of price taking due consideration of cost & market condition

Mobil product is always sales in market with a high-quality and high price. So it should take necessary steps in product Positioning and Price Alignment Gradual product price adjustment to stay competitive. Concentrate on sale of premium product for better margins

Mobil products export in Nepal till last 3 years, So Mobil Jamuna Lubricants Ltd should think about the export of their product to other countries like Nepal.

Following steps are also useful for sales, service and overall profit for Mobil Jamuna Lubricants Ltd: Careful product positioning Marketing through specific distribution segments Extensive marketing campaign Innovative Sales Promotion Media Advertisement

Conclusion According to Oil & Gas Journal (OGJ), Bangladesh has 28 million barrels of proven oil reserves as of January 2006, down from 56 million barrels in 2005. The country produced an estimated 4,000 barrels per day (bbl/d) of oil in 2005, flat from the previous year. Bangladeshs relatively low level of domestic reserves and production capacity make it a net oil importer, as the country consumed an estimated 91,000 bbl/d of oil in 2005. To date oil exploration has been rather unsuccessful in Bangladesh, with most companies choosing to focus instead on the countrys plentiful natural gas reserves. Exploration and production activities are primarily carried out by the Bangladesh Petroleum Exploration and Production Company (BAPEX), a subsidiary of the state-owned Bangladesh Oil, Gas & Mineral Corporation (Petrobangla). However, the country has also initiated several Production Sharing Contracts (PSCs) with foreign oil companies and has employed tax incentives to attract foreign company involvement. In 1993, after the formation of a new National Energy policy, the government of Bangladesh divided its territory and offshore sites into 23 blocks and opened them to foreign bidding for oil and gas exploration. During the First Bidding Round in 1993, eight blocks were awarded to four companies through PSCs. In 1997 during the Second Bidding Round, three PSCs were awarded covering four additional blocks. The government planned to hold a third round of bidding focusing on the offshore Bay of Bengal region in 2006, but it has so far been delayed. Before new bidding is opened, the government will complete a geological and seismic survey to identify potential exploration sites. Bangladesh must also accurately mark its deep sea territory and settle ongoing maritime border disputes with India and Myanmar. The lubricant market in Bangladesh is estimated at 70,000 MT per annum, and estimated to grow at a rate of 6-8 per cent annually. So if Mobil Jamuna Lubricants Limited can fully utilizes its strengths & opportunities lowering the weaknesses and threats, it will be able to sustain as the market leader in future also. As in recent years the use of automotive has increased a lot, so MJLBL has to conquer this sector along with industrial segment.

References

1. Business Analysis & Valuation by Krishna G. Palepu, Paul M. Haley 2. Corporate Finance by Ross, Westfield & Jaffe 3. Financial Management by Brigham, Gerhardt 4. Annual Reports of Mobil Jamuna Lubricants Limited for the year 2005,2006,2007,2008,2009 5. www.berc.org.bd/ 6. http://www.rncos.com/Blog/2008/05/Bangladesh-Energy-Sector-in-Awful-StateNeeds-Huge-Investment.html