Id Jocl 13

“If you have any queries about this document, you may consult issuer and issue manager.
Information Document for Direct Listing
ON
JAMUNA OIL COMPANY LIMITED

Jamuna Bhaban, Agrabad Commercial Area, Chittagong.
Phone – 88-031-720181-3, 2520134-9, 2520408.
Fax - 88-031-713289, E-mail : [email protected].
Offloading of 1,35,00,000 ordinary shares of Tk.10.00 each (Face value Tk. 13,50,00,000.00)
Listing Approval Date DSE : November 18, 2007

Listing Approval Date CSE : December 02, 2007
Manager to the Issue
ICB Capital Management Limited

(A Subsidiary of ICB)
BSB Building (14th Floor),
8, DIT Avenue, Dhaka.
Date of Information Document : December 18, 2007
The issue shall be placed in “N” category
“CONSENT OF THE DHAKA AND CHITTAGONG STOCK EXCHANGE LIMITED

HAS BEEN OBTAINED TO THE ISSUE/OFFER OF THESE SECURITIES UNDER
THE DHAKA & CHITTAGONG STOCK EXCHANGE (DIRECT LISTING)
REGULATIONS, 2006. IT MUST BE DISTINCTLY UNDERSTOOD THAT IN
GIVING THIS CONSENT THE EXCHANGES DO NOT TAKE ANY
RESPONSIBILITY FOR THE FINANCIAL SOUNDNESS OF THE COMPANY, ANY
OF ITS PROJECTS OR THE ISSUE PRICE OF ITS SHARES OR FOR THE
CORRECTNESS OF ANY OF THE STATEMENTS MADE OR OPINION EXPRESSED
WITH REGARD TO THEM. SUCH RESPONSIBILITY LIES WITH THE ISSUER,
ITS DIRECTORS, CHIEF EXECUTIVE OFFICER/CHIEF FINANCIAL OFFICER,
ISSUE MANAGER AND/OR AUDITOR.”
1
Availability of Information Document
Information Document of the Company may be available at the following addresses:
Company Contact Person Contact Number

JAMUNA OIL COMPANY LIMITED Md. Nazmul Hoque Phone : 88-031-720181-3, 2520134-9, 2520408
Jamuna Bhaban, Company Secretary Fax : 88-031-713289
Agrabad Commercial Area, E-Mail : [email protected]
Chittagong.
Manager To the Issue Contact Person Contact Number

ICB Capital Management Ltd. Md. Iftikhar-uz-zaman Tel : 88-02-7160422,7160326-27, 9563455 EXT 196
BSB Building (14th Floor), E-mail : [email protected]
Chief Executive Officer
8 DIT Avenue, Dhaka. Website : www.icbcml.com.bd
Stock Exchanges Available at Contact Number

Dhaka Stock Exchange Ltd. DSE Library Phone : 88-02-9564601, 7175705-9
9/F Motijheel C/A, Fax : 88-02-9564727
Dhaka-1000. E-mail : [email protected]
WebSite : www.dsebd.org
Chittagong Stock Exchange Ltd. CSE Library Phone : 88-031-714632-3, 720871-3

CSE Building, 1080 sheikh Mujib Road, Fax : 88-031-714101
Chittagong. E-mail : [email protected]
web site : www.cse.com.bd
Information Document would also be available on the web site of SEC (www.secbd.org), DSE
(www.dsebd.org), CSE (www.cse.com.bd and www.csebd.com), Issue Manager
(www.icbcml.com.bd) and Public Reference Room of the Securities and Exchange Commission
(SEC) for reading and studying.
2
SHARE CAPITAL OF THE COMPANY
Authorised Capital :
As on 30-06-2006 Authorised Capital of the Company was Tk. 10,00,00,000.00 divided in to 1,00,00,000
ordinary shares of Tk. 10.00 each.
As on 25-06-2007 The Company enhanced Authorised Capital which stood at Tk. 300,00,00,000.00 divided
in to 30,00,00,000 ordinary shares of Tk. 10.00 each.
Paid-up Capital :
Description Number of Shares Paid-up capital (in Tk.)

As on 30-06-2006 50,00,000 5,00,00,000.00
The Company declared 1:1 bonus share at 31st 50,00,000 5,00,00,000.00
Annual General Meting held on 29th June, 2007
The Company declared 1:3.5 bonus share at 3,50,00,000 35,00,00,000.00
Extra-ordinary General Meting held on 26th
August, 2007.
Total 4,50,00,000 45,00,00,000.00
3
Table of Contents
Item Page No.
A. Disposal of Shares : 6
B. Risk Factors and management perceptions : 8
C. Description of Business : 10
Information about the Company :
Principal products or services of the company :
Market for the products or services of the company :
The relative contribution to sales and income of each product or service
in case of more than one product or service:
Name of associates, subsidiary/related holding company and their core areas of business:
Distribution procedure of products or services:
Competitive conditions in the business:
Sources and availability of raw materials and the names of the principal suppliers:
Sources of, and requirement for, power, gas and water:
Name of customers who purchase 10% or more of the company’s products:
Description of any contract which the company has with its principal suppliers or Customers:
Description of any material patents, trademarks, licenses or royalty agreements:
Number of total employees of JOCL and number of full-time employees of JOCL:
Production capacity and current utilization:
D. Description of Property : 13
Location of the principal plants and other properties and the conditions thereof:
Property owned by the company or taken on lease:
Mortgage or other type of lien on the property owned by the company:
Expiration date of the lease, if it is taken on lease:
E. Plan of Operation and discussion on Financial Conditions : 16

Internal and external sources of cash:
Material commitments for capital expenditure and the expected sources of Funds:
Causes of any material changes in income, cost of goods sold, other operating
expenses and net income:
Seasonal Aspects:
Known trends, events or uncertainties:
Change in the assets used to pay off any liabilities:
Loans taken from the holding/Subsidiary company or loans given to those companies:
Future contractual liabilities:
Estimated future capital expenditure:
Vat, income tax, customs duty or other tax liabilities yet to be paid:
Sources of Vat, income tax, customs duty and other tax liabilities yet to be paid:
Details of operating lease (if any) during last five years:
Last five years Financial commitment including lease commitment:
Personnel related schemes to make provision in future years:
Break down of all expenses including fee of issue manager:
Revaluation of assets:
Last five years transactions between the issuer company and its subsidiary/holding company:
Special report from the auditors regarding any allotment of shares to promoters or sponsors:
Material information having an impact on the affairs of the company:
F. Directors and Officers : 21

Names, ages and positions of all Directors, alternate Directors of the company:
Date of first becoming Director and date of expiry of current term:
Involvement of Directors with other companies:
Involvement of Directors with listed company in terms of dividend and category:
Family relationship among directors, alternate directors, nominees and officers:
Short bio-data of each Director:
Holding of 5% or more shares in the paid-up capital by the Directors or shareholders
of the Issuer is loan defaulter in terms of the CIB report of the Bangladesh Bank:
Description of Senior executives and officers:
4
G. Involvement of Officers and Directors in certain legal proceedings : 25
H. Certain Relationships And Related Transactions : 25

Involvement of Director or executive officer in the transaction with the issuer:
Involvement of any Director or Officer:
Involvement of any person in the transaction with the issuer owning 5% or more of the
outstanding stock of the issuer :
Involvement of any family members of the above persons in the transaction with the issuer:
Involvement of any transaction between the issuing company and a director of the company
or any of its subsidiary /holding company:
Loans taken from, or given to, any director or any person connected with the director:
Holding position of any director in any company, society, trust, organization or other firms:
Pecuniary or non-pecuniary interests and facilities enjoyed by a director:
I. Executive Compensation : 26
Name and designation with the amount of remuneration paid to the top ten
salaried officers in the last accounting year:
Aggregate amount of remuneration paid to all officers and directors in the last accounting year:
Remuneration paid to any Director who was not an officer during the last accounting year:
Contract with any officer or director for the payment of future compensation:
Increment in the remuneration to the officers and directors of the company in the current year:
J. Options granted to Officers, Directors and Employees of JOCL: 27

Options held by the three top salaried officers, each director and all other officers:
Options held by any persons other than the officers and directors:
K. Transaction with Promoters : 27
L. Tangible assets per share : 27

Net Tangible assets per share of the securities being offered :
M. Ownership of the Company’s Securities : 28

Name and address of the persons owning 5% or more of the securities of the issuer:
Number of shares owned by the top ten salaried officers, directors and all other officers:
N. Description of Securities Outstanding or Being Offered : 28

Dividend, voting and preemption rights of the shares outstanding or being offered:
Dividend, voting and conversion and liquidation rights of any preferred stock
outstanding or being offered:
Limitations on the payment of dividends to common or preferred stockholders:
Others material rights of common or preferred stockholders:
O. Debt Securities : 29
Terms and conditions of debt securities that the company may have issued or to be issued:
Principal amount, maturity date, interest rate and other features of all debt securities:
All other material provisions giving or limiting the rights of the holders of debt:
Trustees designated by the indenture for outstanding debt or for debt being offered:
P. Financial Statements :
Auditors’ Report: 30
Selected Ratios:
Comparative Income Statements, Balance sheet and Cash Flow Statement for
immediate preceding five accounting years and half year ended on 31 December,2006:
Q. Credit Rating Report : 61
R. Additional Disclosure : 77
5
A. Disposal of Shares
Details of offloading of shares by the Existing Shareholders As per Regulation 5 of

DHAKA & CHITTAGONG Stock Exchange (Direct Listing) Regulations, 2006
The company shall offload 1,35,00,000 ordinary shares of Tk. 10.00 each (Face value Tk. 13,50,00,000.00)
with a minimum market lot of 100 (One hundred) shares following the Regulation 5 of Stock Exchange (Direct
Listing) Regulations, 2006, the Depository Act, 1999 and regulations issued there under:
1. As resolved in the Board of BPC, the present owner of the shares, and also as per resolution taken in
the EGM of JOCL, 30% of the proposed offer (i.e. 1,35,00,000 shares) to be sold to the general
public/institutions at market price.
2. The information Document, as vetted by DSE & CSE, shall be published in at least two widely
circulated national dailies (One in English and one in Bengali) minimum 7 (Seven) days before
commencement of trade upon listing by DSE & CSE along with an electronic copy for posting in the
web page of DSE & CSE.
3. The company shall simultaneously submit the vetted Information Document with all exhibits to SEC,
to the stock Exchange(s) where it tends to list its securities.
4. The existing shareholders of the company shall sell their shares through brokers of the exchange
upon listing.
5. No existing shareholder of the company shall sell more than 50% of his existing shareholdings until
the company holds the annual general meeting after completion of one full accounting year of the
company upon listing with the Exchanges.
6. The conditions stated in 4 and 5 is subject to the provision that the existing shareholders shall offer
for sell at least 10% of the shareholdings in the company within 30(thirty) working days from the
date of listing.
7. The following declaration shall be made by the company in the Information Document, namely :-
“Declaration about Listing of Shares with the Stock Exchange(s) :
Applications have been made to the Dhaka and Chittagong Stock Exchanges for permission of the
shares of the company for dealing in both the said Stock Exchanges and for the quotation of the
stock exchanges. After fulfillment of all requirements by the Company, the Exchanges shall list the
Company’s shares within three weeks from the date of Publication of the Information Document, as
mentioned in regulation 4, under intimation to the Commission, provided there is no contrary opinion
of the Commission in this respect.
In case of failure to fulfill the requirements by the company, the Exchanges shall reject the
application for listing showing reasons thereof, under intimation to the Securities and Exchange
Commission within 60 (sixty) days from the date of application.”
6
Date: 06.11.2007
To
The Secretary
Dhaka Stock Exchange Limited
Dhaka.
Dear Sir,
UNDERTAKING
We undertake, unconditionally, to abide by the Listing Regulations of the Dhaka Stock Exchange Limited as well as
other relevant securities laws which presently are, or hereinafter may be in force.
We further undertake:
(1) That our shares and securities shall be quoted on the Ready Quotation List and/or the Cleared List at the discretion
of the Exchanges.
(2) That the Exchanges shall not be bound by our request to remove the shares or securities from the Ready Quotation
List and/or the Cleared List.
(3) That the Exchanges shall have the right, at any time to suspend or remove the said shares or securities for any reason
which the Exchanges considers sufficient in public interest.
(4) That such provisions in the Articles of Association of our Company or in any declaration or basis relating to any
security as are or otherwise not deemed by the Exchanges to be in conformity with the Listing Regulations of the
Exchanges shall, upon being called upon by the Exchanges, be amended to supersede the Articles of Association of
our Company or the declaration or basis relating to any security; and
(5) That our Company and/or the security may delisted by the Exchanges in the event of non-compliance and breach of
the Regulations and/or other relevant securities laws of this undertaking after giving an opportunity of being heard to
us.
Yours faithfully,
Sd/-
(Sayed Md. Mozammel Haque)
Director (Operation) – BPC
&
Managing Director (Additional Charge)
Jamuna Oil Company Limited
----------------------------------------------------------------------------------------------------------------
The Board of Directors November 25, 2007
Chittagong Stock Exchange Limited
Chittagong.
UNDERTAKING
We undertake, unconditionally, to abide by the Listing Regulations of the Chittagong Stock Exchange (Guarantee)
Limited as well as other relevant securities laws which presently are, or hereinafter, may be in force.
We further undertake :
1) That our Shares and Securities shall be quoted on the Ready Quotation board and / or the Cleared List at the
discretion of the Exchange;
2) That the Exchange shall not be bound by our request to remove the Shares or Securities from the Ready Quotation
and / or the Cleared List;
3) That the Exchange shall have the right, at any time to suspend or remove the said shares or securities for any reason
which the Exchange considers sufficient in public interest;
4) That such provisions in the Articles of Association of our Company or in any declaration or agreement relating to
any other security as are or otherwise not deemed by the Exchange to be on conformity with the Listing Regulations
of the Exchange shall, upon being called upon by the Exchange, be amended to supersede the articles of association
of our Company or the nominee relating to the other Securities to the extent indicated by the Exchange for purposes
of amendment and we shall not raise any objection in relation to a direction by the Exchange for such amendment;
and
5) That our Company and / or the Security may be de-listed by the Exchange in the event of non-compliance and
breach of the Regulations and / or other relevant securities laws of this undertaking.
Yours faithfully,
Sd/-
( Md. Masudur Rahman )
Managing Director
7
STATEMENT REGARDING HOLDING OF ANNUAL GENERAL MEETING OF THE COMPANY
No. of AGM Date of Hold on Financial Year

1ST AGM 30.03.1994 1975-76
2ND AGM 30.03.1994 1976-77
3RD AGM 30.03.1994 1977-78
4TH AGM 22.08.1994 1978-79
5TH AGM 22.08.1994 1979-80
6TH AGM 22.08.1994 1980-81
7TH AGM 22.08.1994 1981-82
8TH AGM 22.08.1994 1982-83
9TH AGM 22.08.1994 1983-84
10TH AGM 22.08.1994 1984-85
11TH AGM 22.08.1994 1985-86
12TH AGM 07.09.1994 1986-87
13TH AGM 07.09.1994 1987-88
14TH AGM 07.09.1994 1988-89
15TH AGM 07.09.1994 1989-90
16TH AGM 07.09.1994 1990-91
17TH AGM 07.09.1994 1991-92
18TH AGM 07.09.1994 1992-93
19TH AGM 29.03.1995 1993-94
20TH AGM 27.03.1996 1994-95
21ST AGM 24.03.1997 1995-96
22ND AGM 29.03.1998 1996-67
23RD AGM 24.06.1999 1997-98
24TH AGM 21.09.2000 1998-99
25TH AGM 15.11.2001 1999-00
26TH AGM 22.08.2002 2000-01
27TH AGM 04.09.2003 2001-02
28TH AGM 22.07.2004 2002-03
29TH AGM 19.05.2005 2003-04
30TH AGM 23.06.2006 2004-05
31ST AGM 29.06.2007 2005-06
B. Risk Factors and Management Perceptions :
Risk is always associated with any kind of investment. So before taking decision on investing in
shares of JOCL the investors should carefully analyze the following risks in addition to the information
contained in the Information Document:
a) 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 enhance the cost of fund of a firm and squeeze the profit. Jamuna Oil
Company Ltd. is totally free from this type of risk, as the Company has not borrowed any fund.
Management Perception:
Since the JOCL has not borrowed any fund, hence, the interest rate risk does not arise.
8
b) Exchange rate risk: Exchange rate risk is not related to core business of JOCL, since it receives
refine products from BPC in local currency and supply to the customers in local currency also. On the
other hand, the company is a distributor of Mobil-Jamuna Lubricants Limited (MJLL) for lube oil in
Bangladesh through local currency. Sometimes the Company imports machineries from abroad where
foreign currency is involved and exchange rate can impact the matter.
To avoid risk arising out of fluctuation of foreign currency JOCL deliberately makes forward contract
with respective banks for importing machineries, which reduces the negative impact in JOCL’s
profitability.
c) Industry risk: Total oil market in Bangladesh is controlled by the Govt. through BPC. Total market
share is fixed equally for three oil-marketing companies under the control of BPC.
Since oil market share in Bangladesh is fixed and there is no other private oil company, the industry
risk is under control of the company.
d) Market & Technology related risk: Technology for a oil distributing company related to
transmission, distribution, storing and measuring of oil is being upgraded rapidly in the developed
countries as well as other developing countries in the world. Emergence of new technology may
cause for obsolescence of existing technology/equipment. So embracing with new technology is
essential for ensuring better services and cost efficiency.
The management of JOCL is aware of technological changes and has attempted for adoption of new
technology gradually according to a well-designed strategy. The gradual adoption of new technology
help to mitigate the risk of obsolescence or other uncertainties. Further routine and proper
maintenance of the transmission, distribution, storage, and measuring facilities carried out by the
JOCL ensures longer service life for the existing equipment and facilities.
e) Potential or existing Government regulations: The business activities of the Company is fully
controlled by policies, rules and regulations framed by Government that is, policies related to oil price
fixation, demand & supply and distribution is fully under the control of Government. Government
policies in this regard may impact business operation of JOCL.
Since total oil market of Bangladesh is controlled and monitored by the Government through BPC any
existing or potential government regulations are generally in favour of the oil marketing companies.
So any unfavorable rules, regulations, policies adopted by Government will equally impact the all-
existing ventures of oil industry. If, however, Government policy is reversed, JOCL may face initial
challenges. But JOCL, because of it has proven experience and penetration and network is expected
to retains its position.
f) Potential changes in global or national policies: The performance of the company may be
affected due to unavoidable circumstances both in Bangladesh and worldwide, as such political
turmoil, war, terrorism, political unrest in the country or in oil exporting countries may adversely
affect the economy in general.
The risk due to changes in global or national policies is beyond control for any company. Yet the
company is well prepared for adoption of policies and preventive measures as and when required to
reduce the risk.
g) Non-operating history: There is no history of non-operation in case of JOCL.
To overcome these uncertainties the company has planed to overcome the problem such as power
backup system, demand management, which may reduce the non-operating risk.
9
h) Operational Risk: Non-availability of power for onward distribution, non-smooth supply from BPC &
ERL and other sources may affect the smooth operational activities of JOCL. On the other hand the
plants and equipment related to oil storage and distribution network system may face some
operational & mechanical faults due to various national disasters, lack of supervision, unforeseen
events and negligence in handling the operating system may also lead to severe accidents and losses.
The Company is equiped with power generating and demand management system, which is
favourable for reducing operational risk. Besides, key installation storage tanks are under insurance
coverage in order to reasonable compensation for any damages. Apart from those, routine check and
proper maintenance of storage, and distribution network can reduce and eliminate the operational
risk.
C. Description of Business
Information about the Company:
Jamuna Oil Company Limited (JOCL) is a petroleum marketing Company, which is serving the nation for many
years. The Company was formed as a private limited company on March 12, 1975 under the Companies Act,
1913 (Amended 1994). The Company is inheritor of Pakistan national Oils Limited, which was formed in 1964.
After our long cherished independence the Pakistan national Oils Limited was renamed as Bangladesh
National Oils by an Ordinance of 1972. In the year 1975 the company acquired all the properties, rights,
interests and assets of Bangladesh National Oils. The Company has been functioning as a subsidiary of
Bangladesh Petroleum Corporation (BPC) since its establishment. The Company markets Octane, Petrol,
Diesel, Kerosene, Furnace Oil, Bitumen, Lubricants and LP Gas. As per decision of Bangladesh Government
and Bangladesh Petroleum Corporation, the Company was converted into public limited company on 25-06-
2007.
Principal products or services of the company:

The main products, which the Company markets, are as follows:
a. Octane (HOBC)
b. Petrol (MS)
c. Kerosene (SKO)
d. Diesel (HSD)
e. Light Diesel Oil (LDO)
f. Furnace Oil (FO)
g. Jute Batching Oil (JBO)
Apart from those the Company also markets bitumen, lubricants and LP gas.
Market for the products or services of the Company:

The Company markets Petroleum Fuel Oil, Lubricants, LP Gas and Bitumen through out the country. The
Company occupied 32.97% share of the market in the year 2005-2006 and up to December of FY 2006-2007
Company controlled 33.14% market share.
The relative contribution to sales and income of each product or service that accounts for more
than 10% of the company’s total revenues:
The products of the company, which contributes more than 10% to total revenue, are appended bellow:
Contribution Percentage to
Products Total revenue
July-Dec., 2006 FY 2005-06
Petrol (MS) 25.59 19.81
Kerosene (SKO) 8.28 9.88
Diesel (HSD) 38.90 46.73
LUBRICANTS & GREASE 19.06 10.62
Name of associates, subsidiary/related holding company and their core areas of

business:
Bangladesh Petroleum Corporation (BPC) is the holding Company of Jamuna Oil Company Limited. The main
functions of BPC are –
i. Procurement of crude oil for processing in the country’s refinery and import of deficit refined petroleum
products and lubricants;
10
ii. Monitoring ERL’s operations, marketing and distribution of petroleum products in the country;
iii. Controlling price and quality of petroleum products throughout the country;
iv. Export of surplus naphtha and furnace oil;
v. Implementation of development projects in the country.
The Company invested Tk. 877.00 lacs in Mobil Jamuna Lubricants Limited and Tk. 877.00 lacs in Mobil
Jamuna Fuels Limited. Mobil Jamuna Lubricants Limited set up a state-of-the-art lube oil blending plant
(LOBP) at Patenga, Chittagong, in 2003. By this time, It has proved its excellence in providing an professional
array of quality lubricant products and technical oil testing services, to satisfy a diverse range of customer
needs in Automotive, Industrial, Marine and Aviation Lubricant sectors. The plant incorporates the very latest
in-line blending technology to allow most of Exxon Mobil’s diversified product lines to be blended and
packaged in Bangladesh.
A) MOBIL JAMUNA LUBRICANTS LIMITED (MJLL):

MJLL was incorporated on 03-12-1998 as a private limited company. The company went into commercial
operation on 20-5-1999. Commercial production commenced of the company on 02-7-2003. The business of
the company is blending and marketing of Lubricants and Greases. Against investment of MJLL, JOCL has
been received net dividend Tk. 1,05,24,000/- for the year ended 31st December 2002 and Tk. 74,54,500/- for
the year ended 31st December 2005 received on 11-6-2007.
The important features of the contract between JOCL and MJLL are as follows:
1) Equity position : Jamuna - 25%
Mobil - 75%
2) Debt equity ratio is 60 : 40
3) The proposed project land of Jamuna Oil Company Limited is 6.175 acre and the value of the land
is fixed Tk. 8.75 crore as equity of 25% shares.
4) Tk. 2.00 lac is being made for primary shares.
5) The total investment for the project is Tk. 8.77 crore (Tk. 8.75 crore + Tk. 2.00 lac).
6) Under the Joint Venture Agreement Schedule clause-K dated 26.07.1998, Mobil Asia Pacific has
been transferred their acquiring 59% shares of MJLL to EC Securities Ltd. on 24.05.1999.
7) The authorized capital of MJLL is Tk. 132,00,00,000.00 with total nos. of 13,200 ordinary shares of
Tk. 1,00,000.00 each. At present the share holding position is as follows:
Share Value
Name of Shareholder Number of Shares Participating Interest
(Taka)
Mobil South Asia Investments Ltd. (Mobil) 561.28 5,61,28,000 16%
Jamuna Oil Company Ltd. (Jamuna) 877 8,77,00,000 25%
EC Securities Ltd. (ECL) 2069.72 20,69,72,000 59%
B) MOBIL JAMUNA FUELS LIMITED (MJFL):

Mobil Jamuna Fuels Limited (MJFL) is a private limited company incorporated in Bangladesh under
companies Act 1994 on 03-12-1998. The company was established to carry on business as designer,
constructor, owner and operator a Liquefied Petroleum Gas (LPG) and other Petroleum based fuel terminal
and related facilities to import blend and distribution of Mobil branded LPG and other Petroleum products.
But Chittagong Port Authority did not give NOC for establishing LPG plant in Port area at this condition the
management of the MJFL Company decided to establish premium motor gasoline producing plant. In this
connection MJFL applied to the Ministry of Power, Energy and Mineral resources for allocation of Naphtha as
feedstock for producing motor gasoline which is yet to be established.
The important features of the contract between JOCL and MJFL are as follows:
1) Equity position : Jamuna - 25%
Mobil : 75%
2) Debt equity ratio is 60 : 40
3) The proposed project land of Jamuna Oil Company Limited is 6.175 acre and the value of the land
is fixed Tk. 8.75 crore as equity of 25% shares.
4) Tk. 2.00 lac is being made for primary shares.
5) The total investment for the project is Tk. 8.77 crore (Tk. 8.75 crore + Tk. 2.00 lac).
6) Under the Joint Venture Agreement Schedule clause-K dated 26.07.1998, Mobil Asia Pacific has
been transferred their acquiring 25% shares of MJFL to EC Securities Ltd. on 24.05.1999.
11
7) The authorized capital of MJFL is Tk. 220,00,00,000.00 with total nos. of 22,000 ordinary shares of
Tk. 1,00,000.00 each. At present the share holding position is as follows:
Share Value
Name of Shareholder Number of Shares Participating Interest
(Taka)
Mobil South Asia Investments Ltd. (Mobil) 220 2,20,00,000 50%
Jamuna Oil Company Ltd. (Jamuna) 110 1,10,00,000 25%
EC Securities Ltd. (ECL) 110 1,10,00,000 25%
Distribution procedure of products or services:
At first the Company storages its all products in main installation at Patenga, Chittagong. From the
main installation, products are supplied to various locations throughout the country. The storage
network of the company is shown below:
Depot Network
Main Installation
Chittagong
Bhairab Bazar Fatullah Barisal Jhalakati Chandpur Daulatpur
Baghabari Chilmari Balashi Sylhet Rangpur Rajshahi Natore
Shachna Sreemongal Parbatipur

i) Riverine Depot
ii) Railhead Depot
From those storages, products are distributed to enlisted dealers/agents/retailer and Government consumers
& Industrial sectors.
Competitive conditions in the business:

Meghna Petroleum Limited, Padma Oil Limited and the JOCL are entrusted with the responsibility of
distribution/marketing of petroleum products under discretion of BPC to meet the demand for the same of the
Country. Total market of the country is equally shared by each Company as decided by BPC. As the market
share is fixed the Company does not have to face competition for its main products. How ever the Company
faces competition for it’s products like Lubricants, Bitumen, LP Gas etc. with nationalized and private
organizations.
Sources and availability of raw materials and the names of the principal suppliers :
The Company markets refined oil, petroleum gas and lubricant products. Bangladesh Petroleum Corporation,
Eastern Refinery and several Gas fields of Petrobangla are the sources of refined oil and Condensate
Petroleum Gas. On the other hand, Mobil Jamuna Lubricants Limited is the main source of Lubricant products.
Sources of, and requirement for power, gas and water:

The required electricity is secured from BPDB, DESA, DESCO and Palli Biddyut Samity of REB. Water is
required for auxiliary purpose, which is meet from own resources or from local arrangement as availability.
Name of customers who purchase 10% or more of the company’s products:

There are no such customers of JOCL who purchase 10% or more of it’s products
Description of any contract which the company has with its principal suppliers or
Customers:
For Lubricant Products the Company has an agreement with Mobil Jamuna Lubricants Limited.
12
Description of any material patents, trademarks, licenses or royalty agreements:
There is no such agreement.
Number of total employees and number of full-time employees:

As on June, 2007 employee’s position of the company is as follows:
Description Number of Employee

Management 148
Non-Management Stuff 123
Non-Management Worker 282
Total 553
All of them are full time employee.
Production/Storage capacity and current utilization:

The storage capacity of petroleum products is 1,26,593 MT and the capacity is fully utilized.
D. Description of Property:
Information in respect of plants and property :-
Location of the principal plants and other property and the condition thereof :
Plant and Machinery:

Sl. No. Name of the Plant/Property Location Condition
1 Main Installation Patenga, Chittagong Good
2 Fatullah Depot Fatullah, Narayangonj Good
3 Barisal Depot Barisal Good
4 Bhairab Bazar Depot Bhairab Good
5 Daulatpur Depot Daulatpur, Khulna Good
6 Baghabari Depot Baghabari Good
7 Chandpur Depot Chandpur Good
8 Sylhet Depot Sylhet Good
9 Jhalakati Depot Jhalakati Good
10 Parbatipur Depot Parbatipur, Dinajpur Good
11 Balashi Depot Balashi, Kurigram Good
12 Sachna Bazar Sachna Bazar, Jamalgonj, Sunamgonj Good
Filling & Service Station Facilities (as per JOCL’s sales division) :
1 Dhaka Division All over Dhaka Division 52 Nos. Good
2 Chittagong Division All over Chittagong Division 60 Nos. Good
3 Khulna Division All over Khulna Division 23 Nos. Good
4 Bogra Division All over Bogra Division 22 Nos. Good
Building :
1 Main Installation Potenga, Chittaong Good
2 Jamuna Bhaban, Agrabad, Chittagong Good
3 Halishahar Halishahar, Chittagong Good
4 Muradpur Muradpur, Chittagong Good
5 Mirpur Mirpur, Dhaka Good
7 Daulatpur Depot Daulatpur,Khulna Good
10 Sreemongol Depot Sreemongol, Sylhet Good
12 Brahmanbaria Depot Brahmanbaria Good
13 Rangpur Depot Rangpur Good
15 Baghabari Depot Baghabari,Sirajgonj Good
13
Freehold Land :
1 Main Installation Potenga,Chittagong Good
2 Jamuna Bhaban, Agrabad, Chittagong Good
Tank & Pipe Line :
1 Main Installation Potenga,Chittagong Good
6 Baghabari Depot Baghabari, Sirajgonj Good
Leasehold Land :
1 Halishahar Housing Estate Halishahar, Chittagong Good
2 Muradpur Housing complex Muradpur, Chittagong Good
3 Chittagong Terminal Patenga, Chittagong Good
4 Mirpur Housing & Settlement Mirpur, Dhaka Good
5 Kawran Bazar Kawran Bazar, Dhaka Good
Pump, Filling & Fire Fighting Equipment :
2 Jamuna Bhaban Agrabad, Chittagong Good
10 Parbatipur Depot Parbatipur Good
11 Balashi Depot Balashi, Kurigram Good
Laboratory Office & Engineering Equipment :
2 Jamuna Bhaban, Chittagong Agrabad, Chittagong Good
3 Resident Office, Dhaka Dhaka Good
4 Divisional Office, Khulna Khulna Good
5 Divisional Office, Bogra Bogra Good
14 Chilmari Depot Chilmari Good
15 Balashi Depot Balashi Good
16 Natore Depot Natore Good
14
17 Jalokati Depot Jalokati Good
Vehicles & Other Rolling Stock :

Railway Siding & Jetty :

Furniture & Fixture :

14 Chilmari Depot Chilmari Good
15 Balashi Depot Balashi Good
16 Natore Depot Natore Good
17 Jalokati Depot Jalokati Good
MT Jamuna & Others :

Storage Tanks :
1 Main Instillation Potenga Chittagong Good
9 Rangpur Depot Rangpur Good
The company itself owns the entire fixed assets except lease hold assets.
15
The properties, plants and equipments owned by the company and written down value are
displayed in the following manner:
(Figure in Tk.)
Particulars Written down Written down
Value at 31 December 2006 Value at 30 June 2006
Freehold Land 98,27,747.00 98,27,747.00
Leasehold Land 75,24,422.00 75,76,867.00
Building 1,06,30,269.00 1,15,13,484.00
Tank & Pipe Line 1,49,65,884.00 1,62,24,706.00
Plant & Machinery 6,11,745.00 6,79,963.00
Up-Country Depot 9,38,64,037.00 9,23,36,812.00
Service & Filling Station 21,386.00 28,078.00
Pump filling & Fire Fighting equipment 46,66,548.00 5,062,121.00
Laboratory office & Engg. Equipment 29,97,194.00 3,400,720.00
Vehicles and other Rolling Stock 46.00 82,855.00
Railway siding and Jetty 11.00 11.00
Furniture and Fixture 20,21,292.00 2,156,340.00
Returnable Packages 3.00 3.00
Oil Tanker MT Jamuna & others 3.00 3.00
Total 14,71,30,587.00 14,88,89,710.00
Description of lease holds property & Expiration date of the lease:

LEASE HOLD LAND:
SL PARTICULARS & LEASE TAKEN DATE OF LEASE AREA IN TAKA Date of
No. LOCATION FROM ACQUISITION PERIOD ACRE Expiration
1 KAWRAN BAZAR, RAJUK, DHAKA 26/02/1976 99 YRS 0.582 30,19,019.00 26/02/2075
DHAKA
2 KAWRAN BAZAR F/S, DO 01/10/1978 99 YRS 0.245 11,10,938.00 01/10/2077
DHAKA
3 MIRPUR STAFF ASSTT. 03/08/1980 99 YRS 0.990 3,44,335.00 03/08/2079
QUARTER, DHAKA COMMISSIONER
SETTLEMENT DHAKA
4 HALISHAHAR STAFF ADM OFFICER 01/03/1981 99 YRS 0.7017 3,50,783.00 01/03/2080
QUARTER, CHITTAGONG.
5 MURADPUR HOUSING CDA, CHITTAGONG 01/01/1985 99 YRS 1.216 51,52,382.00 01/01/2084
COMPLEX, CHITTAGONG.
6 LAND AT PATENGA, CTG. ERL 16/11/1988 50 YRS 2.028 2,13,547.00 16/11/2038
7 FORMER IBP LAND, CTG. 298.00
TOTAL : 5.7627 1,01,91,301.00
Mortgage or other type of lien on the property owned by the company:

The Company itself owns the entire fixed assets other than leased property. There is no mortgage or lien on
the property.
E. Plan of Operation and discussion of Financial Conditions:

Internal and external sources of cash:
Internal Sources:
Particulars July-Dec 06 2005-06 2004-05 2003-04 2002-03
Paid-up Capital 50000000 50000000 50000000 50000000 50000000
Proposed Bonus Share 50000000 50000000 - - -
Capital Reserve 152833103 152833103 152833103 152833103 152833103
General Reserve 465000000 465000000 465000000 425000000 425000000
Surplus 137974447 3684826 (35047259)
Proposed Dividend - 37500000
Un-appropriate Profit/(Loss) (37913144) 1009785
Total 855807550 721517929 592785844 589919959 666342888
External Sources:
There are no external sources of cash.
16
Material commitments for capital expenditure and the expected sources of Funds:
The material commitments in terms of development activities with estimated cost, sources of fund, year of
completion of those projects with other relevant information shown as follows:
Name of projects Estimated Sources of Year of Remarks

Cost Fund Completion
Construction of 4392.13 Lacs Internal March, 2007 to One third of the project
Mongla Oil source March, 2010 cost will be financed by
Installation Project the company. The rest
amount of the project
cost will be financed
equally by POCL and MPL.
Causes of any material changes in income, cost of goods sold, other operating expenses
and net income:
Summary of Financial Performance
(Taka in '000)
Particulars July-Dec 06 2005-06 2004-05 2003-04 2002-03 2001-02
Turnover 20,269,244 37,283,419 28,184,361 24,451,085 21,863,388 20,039,339
Cost of Sales (19,927,448) (36,794,031) (27,869,321) (24,246,231) (21,572,509) (19,724,173)
Gross Profit 341,796 489,388 315,040 204,854 290,879 315,166
Overheads (172,579) (364,429) (303,668) (283,100) (283,624) (266,684)
Trading Profit 169,217 124,959 11,371 (78,246) 7,255 48,482
Other Income 66,877 136,864 52,708 38,583 79,810 99,389
Interest paid back to BPC - - (59,251) - - -
Contribution to WPPF (11,805) (13,091) (241) - (4,353) (7,394)
Net Income Before Tax 224289 248732 4586885 (39662) 82712 140477
Provision for Income Tax (90,000) (120,000) (1,721) - (31,100) (49,200)
Provision for Distribution Tax - - - (3,750) (2,500) -
Net Profit after Tax & WPPF 134289 128732 2865 (43412) 49112 91277
Un-appropriated profit B/F 3,685 (35,047) (37,913) 1,010 4,398 3,121
Net profit available for 137,974 93,685 (35,047) (42,403) 53,510 94,398
appropriation
Causes of Material changes:

The company earned profits in the financial year 2005- 06 but incurred loss in the financial year 2003-04 and
2004-05 due to the following reasons: -
Due to fall of lubricant product sale, unfavorable weather and on account of condensate purchase decline
Company’s profit reduced in the Fy-2003-04.
To overcome the above problems the Company management had taken effective measures. As a result
company has been able to make profit in the financial year 2005-2006 and onward.
Seasonal Aspects:
Normally there is no seasonal impact on the business of the Company, as demand for products of the
company is almost stable in all seasons. However, demand for Diesel increases in December to April period of
every year for cultivation of Boro and Irri. The Company holds sufficient Diesel in depots situated at different
parts of the country to meet those demand.
Known trends, events or uncertainties:

Natural disaster, social unrest are generally known events that may affect the Company’s business.
Change in the assets used to pay off any liabilities:

No asset of the company has been used to pay off any liabilities.
Loans taken from the holding/Subsidiary company or loans given to those companies:
The company did not take any loan from its holding or subsidiary organization or and also did not provide any
loan to those.
17
Future contractual liabilities :
The Company has no future contractual liabilities that may have impact on the Company’s financial
fundamentals.
Estimated future capital expenditure:

Estimated future capital expenditure for construction of storage tank, purchase of office equipment,
construction of pipe line and jetty, purchase of pump, purchase of fire fighting equipment, generator,
renovation of existing facilities etc. may beTk. 2462.51 lacs.
Vat, income tax, customs duty or other tax liabilities yet to be paid:
a. VAT
There are no VAT liabilities of the Company.
b. Income tax
JOCL has been paying advance Income Tax. Tax assessment up to assessment year 2004-05 has
been completed. Tax assessment for the year 2005-06 and 2006-07 has already been submitted.
Therefore there is no Income tax liability of the Company.
c. Customs duty or other liability

There are no dues outstanding on account of Customs duty or other tax liabilities.
Sources of Vat, income tax, customs duty and other tax liabilities yet to be paid:
Unpaid/unadjusted liabilities, if any, on account of VAT, Income Tax, Customs Duty or Other Tax liabilities will
be paid out from internal source of the company.
Details of operating lease (if any) during last five years:

The company did not obtain any operating lease during last five years.
Last five years financial commitment including lease commitment:

The company did not have such commitments.
Personnel related schemes to make provision in future years :

The following retirement benefit schemes for the employees of JOCL have been introduced:
1. Provident Fund
The company operates a recognized Contributory Provident Fund (CPF) for its permanent employees.
The fund is administered by a Board of Trustees and is funded by 10% contributions equally from the
employee and the employer. The fund is managed separately and is recognized by National Board Of
Revenue (NBR).
2. Gratuity
The company also maintains Gratuity Scheme for permanent employees.
3. Annual Bonus and other Incentives:

There is a provision for two annual Bonus every year for the permanent employees of the Company.
Besides, the company provides earned leave encashment facilities as per guideline of the company.
Break down of all expenses including fee of issue manager and underwriters :
I. Fee of Issue Manager: Tk. 5.00 Lac
II. Underwriting Commission: Nil
Revaluation of assets:
The latest revaluation of company’s assets was made on 30.06.2005. The revaluation was done by a reputed
Chartered Accountants Firm named M/s Huda Vasi Chowdhury & Co. The valuation was for reflection of actual
value of its assets. The revalued amount is not incorporated in the accounts as on 30.06.2006 and 31-12-
2006. The summary of revaluation is show bellow:
18
Valuation of Networth As at 30 June 2005
Amount in Taka
Audited Book Revalued Revaluation
Version Amount Surplus/(Deficit)
Goodwill - 255,760,000 255,760,000

Tangible Fixed Assets:
Fixed Assets 156,610,713 2,552,866,271 2,396,255,558
Capital Work-In-Progress 24,040,322 23,724,669 (315,653)
180,651,035 2,576,590,940 2,395,939,905
Investment 175,000,000 175,000,000 -
Current Assets :
Stocks 3,376,856,063 3,359,190,364 (17,665,699)
Debtors 291,126,421 291,126,421 -
Advances, Deposits & Prepayments 853,361,088 847,941,622 (5,419,466)
Cash & Bank Balances 251,091,528 252,375,905 1,284,377
4,772,435,100 4,750,634,312 (21,800,788)
Less :
Current Liabilities :
Creditors & Accruals 4,617,945,523 4,619,140,419 1,194,896
Provisions for Taxation (82,645,232) (82,645,232) -
4,535,300,291 4,536,495,187 1,194,896
Net Current Assets 237,134,809 214,139,125 (22,995,684)
Less : Deferred Liabilities
Employees Gratuity - (134,260,765) (134,260,765)
Net Worth 592,785,844 3,087,229,300 2,494,443,456
Represented by
Share Capital 50,000,000 50,000,000 -
Capital Reserved 152,833,103 152,833,103 -
General Reserved 425,000,000 2,919,443,456 2,494,443,456
Un-appropriated Profit/ (Loss) (35,047,259) (35,047,259) -
592,785,844 3,087,229,300 2,494,443,456
592,785,844 3,087,229,300 2,494,443,456
The above noted adjustments are proposed on various heads of accounts as a result of revaluation and
review of relevant figures appearing on the audited financial statements as at 30 June 2005.
Last five years transactions between the issuer company and its subsidiary/holding
Company :
There was no transaction between Issuer Company and its subsidiary or holding organization during last five
years
19
Special report from the auditors regarding any allotment of shares to promoters or
sponsors:
(i) TO WHOM IT MAY CONCERN
This is to certify that as per share register and other relevant records maintained by Jamuna Oil Company
Limited (JOCL), the paid up capital of the company as at December 31, 2006 was Tk. 50,000,000.00 divided
into 5,000,000 ordinary shares of Tk.10 each as shown below :
The break-up of the paid up share capital of last five years and sixth months ended on December 31, 2006
commencing from June 30, 2002 is as follows :
Particulars December, June, 2006 June, 2005 June, 2004 June, 2003 June, 2002
2006
5, 000,000 Ordinary shares Tk.
10.00 each fully paid for 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
consideration other wise than
in cash.
Total 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
This is also to certify that :

5,000,000 Ordinary shares of Tk. 10.00 each approved for issue of bonus shares at company’s 31st
Annual General Meeting held on June 29, 2007 were alloted in a Board Meeting held on June 29, 2007.
The allotment was made in favour of BPC. As a result, total paid-up capital stands at Tk.
100,000,000.00 as on June 30, 2007. Further 35,000,000 numbers of bonus shares of Tk. 10.00 each
approved for issue in favour of BPC at company’s EGM held on August 26, 2007 were alloted in a
board meeting held on August 10, 2007. Thus the total paid-up capital of JOCL with the above bonus
issue stands at Tk. 450,000,000.00.
Sd/ Sd/
HOWLADAR YUNUS & CO. M. J. ABEDIN & CO.

Chartered Accountants Chartered Accountants
67 (2nd Floor), Dilkusha C/A, Dhaka-1000 National Plaza (6th Floor), 1/G Free School Street
Sonargaon Road, Dhaka-1205
Dated: September 26, 2007

Place : Dhaka
20
Material information having an impact on the affairs of the company:
Statement of changes in Equity for the year ended 30 June,2006
Particulars Share Capital Proposed issue Capital Reserve General Surplus/ Total Taka
of Bonus share Reserve (Deficit)
Balance at 01 July, 50,000,000 - 152,833,103 425,000,000 (35,047,259) 592,785,844
2005
_ - - 40,000,000 - 40,000,000
Addition during the year _ _ _
_ 38,732,085 38,732,085
Net profit for the year _ _
50,000,000 _ 50,000,000
Issue of share capital
Balance at 30 June 50,000,000 50,000,000 152,833,103 465,000,000 3,684,826 721,517,929

2006
F. Directors and Officers:

Names, ages and positions of all Directors, alternate Directors of the company :
Names and address of the directors Age Position Representative of

Mr. Md. Wahidunnabi Choudhury 55 Chairman of JOCL Energy & Mineral
Additional Secretary, Board Resources Division.
Energy & Mineral Resources Division.
Mr. Anwarul Karim 49 Director of JOCL Bangladesh Petroleum
Joint Secretary & Chairman, Board Corporation
Bangladesh Petroleum Corporation,
Chittagong.
Mr. Md. Alauddin 56 Director of JOCL Energy & Mineral
Joint Secretary (Admin & Operations) Board Resources Division.
Mr. Ahmed Ali 55 Director of JOCL National Board of
Member, National Board of Revenue Board Revenue
Mr. Arastoo Khan 51 Director of JOCL Ministry of Finance
Joint Secretary (Budget 1), Board
Finance Division, Ministry of Finance,
Mr. Syed Md. Matlubur Rahman 49 Director of JOCL Energy & Mineral
Deputy Secretary (Admin) Board Resources Division.
Mr. Md. Masudur Rahman 56 Director of JOCL Bangladesh Petroleum
Managing Director, Board Corporation
Date of first becoming Director and date of expiry of current term :

Sl.No. Name of Directors Date of becoming Date of Expiration of
Director for the Current Term
first time
1. Mr. Md. Wahidunnabi Choudhury 08.01.2006 32nd AGM
2. Mr. Anwarul Karim. 03.06.2007 34rd AGM
3. Mr. Md. Alauddin. 08.02.2007 32nd AGM
4. Mr. Ahmed Ali. 08.02.2007 33rd AGM
5. Mr. Arastoo Khan. 08.02.2007 33rd AGM
6. Mr. Syed Md. Matlubur Rahman 05.04.2007 34rd AGM
7. Mr. Md. Masudur Rahman. 18.07.2007 34rd AGM
21
Involvement of Directors with other companies:
Sl.No. Name of director Name of other organization/company Position.
where the director is involved
01. Mr. Md. Wahidunnabi Choudhury Bakhrabad Gas Systems Ltd., Chairman
Bangladesh Petroleum Corporation Director
02. Mr. Anwarul Karim Eastern Lubricants Blending Ltd. Chairman
Padma Oil Company Ltd. Chairman
Megna Petroleum Ltd. Chairman
Eastern Refinery Limited Director
03. Mr. Md. Alauddin -- --
04. Mr. Ahmed Ali -- --
05. Mr. Arastoo Khan Karmashangthan Bank Director
IFIC Bank Director
SAARC Development Fund Director
06. Mr. Syed Md. Matlubur Rahman Bangladesh Gas Field Company Ltd. Director
07. Mr. Md. Masudur Rahman Mobil Jamuna Luricants Ltd. Director
Mobil Jamuna Fuels Ltd. Director
Involvement of Directors with listed company in terms of dividend and category:

Sl.No. Name of director. Name of organization/ Position. Listing category in
company where the director is terms of dividend
involved
01. Mr. Anwarul Karim Eastern Lubricants Blending Ltd. Chairman “A”
Padma Oil Company Ltd. Chairman “A”
02. Mr. Arastoo Khan IFIC Bank Director “Z”
Family relationship among directors, alternate directors, nominees and officers:

There is no family relationship among Directors, alternate Directors, nominees and Officers.
Short bio-data of each director:
Short Bio-data of each Director :

The Board of Directors of JOCL comprises 7 (seven) Members
including the Chairman and Managing Director. A brief introduction of
the Members of the Board of Directors is as follows :
1. MR. MD. WAHIDUNNABI CHOUDHURY
ADDITIONAL SECRETARY,
ENERGY AND MINERAL RESOURCES DIVISION AND CHAIRMAN.
Mr. Md. Wahidunnabi Choudhury, Additional Secretary, Energy and Mineral Resources
Division and Chairman of the Board of Directors of the Company was born on 3rd March
1952 in Chittagong. He obtained his BA (Hons.) & MA degrees in Economics from Dhaka
University. He joined the Bangladesh Civil Service (Administration) Cadre in 1981 and
served as Assistant Commissioner, Metropolitan Magistrate, Upazila Nirbahi Officer and
Deputy Commissioner and District Magistrate in the field administration of the country.
Before joining Energy and Mineral Resources Division he served as Joint Secretary in the
Power Division and Ministry of Commerce. He attended various training programs at home
and abroad. He is also the Chairman of the Board of Directors of Bakhrabad Gas Systems
Limited and the Director of the Board of Directors of Bangladesh Petroleum Corporation..
22
2. MR. ANWARUL KARIM
CHAIRMAN, BPC AND DIRECTOR.
Mr. Anwarul Karim was born in a respectable Muslim Family on December 31, 1958 at
Mizan Road No-2, Feni, He graduated with Honors in Public Administration from the
University of Dhaka in 1980 and did his MSS from the same University in 1981. He is a
NORAD Fellow and completed M. Phil Program in Public Administration and Organization
Theory from the University of Bergen, Norway in 2000 under NORAD Fellowship with
distinction marks for his thesis. He also participated in CSRT (Comprehensive Security
Response to Terrorism) Course during August-September 2006 at the Asia Pacific Center
for Security Studies (APCSS) in Honolulu, Hawaii, USA.
Mr. Karim joined the Bangladesh Civil Service in January 1984. Prior to joining as
Chairman, BPC in his long career in the Civil Service he has served as Assistant
Commissioner and Magistrate, UNO, ADC, Deputy Commissioner and District Magistrate
(Narayangonj and Rangpur), Member (Joint Secretary), Bangladesh Administrative
Appellate Tribunal and as Joint Secretary he has served in the Ministries of Home Affairs,
Commerce and Establishment. He is a widely traveled man and has visited Norway,
Sweden, Denmark, Bahrain, India, Thailand, Sri Lanka, USA and Singapore.
3. MR. MD. ALAUDDIN
JOINT SECRETARY (ADMN. & OP.)
ENERGY AND MINERAL RESOURCES DIVISION AND DIRECTOR.
Mr. Md. Alauddin, Joint Secretary (Admn. & Op.) Energy and Mineral Resources Division
and Director, Jamuna Oil Company Limited., was born on June 2, 1951. He joined in the
Government Service as Deputy Magistrate & Deputy Collector - Noakhali in the year 1973.
During his tenure in service, he worked as L,A,O - Tangail & Khulna, T.N.O - Homna,
Comilla, Additional Deputy Commissioner - Kishoregonj, Pabna & Chittagong. He also
worked as CMM – Rajshahi. He was Deputy Commissioner - Barisal during the period from
January, 1998 to April, 2001.
4. MR. AHMED ALI

MEMBER (TAX ADMINISTRATION AND MONITORING),
NATIONAL BOARD OF REVENUE AND DIRECTOR.
Mr. Ahmed Ali, Member (Tax Administration and Monitoring), National Board of Revenue
was born on February 29, 1952. He obtained his B.A.(Hons) in 1973 and M.A. in 1974 in
Economics from University of Dhaka. He started his service career as an Assistant Director
of Bangladesh Bank in 1976. In 1979 he joined in the civil service in BCS (Taxation) cadre
as an Assistant Commissioner of Taxes. In his service career in the Taxation Department
Mr. Ali worked as Director General of Directorate of Inspection of Taxes from 2000-2001.
He also served as Commissioner of Taxes in different Taxes Zones from 2001-2005.
Presently he is serving as a Member in the National Board of Revenue.
5. MR. ARASTOO KHAN

JOINT SECRETARY (BUDGET-1),
FINANCE DIVISION, MINISTRY OF FINANCE AND DIRECTOR.
Mr. Arastoo Khan is currently Joint Secretary (Budget), Finance Division, Ministry of
Finance. He was born on November 21, 1956. He did his bachelors honours in International
Relations from Dhaka University. He did his Masters (MSS) from the same discipline
securing First Class First position. He joined Bangladesh Civil Service in 1982 as Assistant
Accountant General. In 1989-90 sessions he obtained degree in Masters in Public
23
Administration (MPA) from John F. Kennedy School of Government, Harvard University,
Boston, USA. He joined finance Division as Deputy Secretary in Budget wing in 2001. He
was promoted as Joint Secretary and served as Wing Head of Resources and Debt
Management Wing. Currently, he heads Budget Wing-1 of Finance Division. He is also
Director of Karmashangthan Bank and IFIC Bank. In regional setting, he is on the Board of
Directors of SAARC Development Fund and sits on the Steering Committee of South Asian
University Steering Committee.
6. MR. SYED MD. MATLUBUR RAHMAN

DEPUTY SECRETARY (ADMINISTRATION),
ENERGY & MINERAL RESOURCES DIVISION AND DIRECTOR.
Mr. Syed Md. Matlubur Rahman, Deputy Secretary (Administration), Energy & Mineral
Resources Division and Director of the Company was born on November 16, 1958. He
obtained Masters of Social Science deemed in Social Welfare and Research from Dhaka
University in the year 1982. He is a Civil Servant and a member of the Bangladesh Civil
Service (Administration) Cadre.
In the service period he worked as Assistant Secretary, Senior Assistant Secretary, Upazilla
Magistrate, Upazilla Nirbahi Officer in various places in the field of administration. He also
worked as Assignment officer in the Prime Ministers Office, Magistrate 1st Class in Dhaka
City Corporation, Deputy Director in Privatization Commission and served as secretary in
National Housing Authority. He is also a Director of the Board of Directors of Bangladesh
Gas Field Company Limited.
7. MR. MD. MASUDUR RAHMAN

MANAGING DIRECTOR & DIRECTOR
Mr. Md. Masudur Rahman, Managing Director & Director of Jamuna Oil Company Limited
was born in 15th August, 1951. He obtained Bachelor of Science in Mechanical
Engineering from Bangladesh University of Engineering and Technology, Dhaka in the year
1975. He is a life fellow of the Institution of Engineers Bangladesh. He was the chief
executive of Meghna Petroleum Limited for 21/2 years and worked in the same capacity in
Padma Oil Company Limited on deputation for 21/2 years. He is also a Director of Mobil
Jamuna Lubricants Limited (MJLL) & Mobil Jamuna Fuels Limited (MJFL) – Two joint
venture Companies in Bangladesh
Holding of 5% or more shares in the paid-up capital by the directors or shareholders of

the Issuer is loan defaulter in terms of the CIB report of the Bangladesh Bank:
As the Shareholder or Directors of JOCL are nominated by the Govt. through Bangladesh Petroleum
Corporation, the question of involvement of JOCL Shareholders and Directors as a loan defaulter in terms of
the CIB report of the Bangladesh Bank shall not arise.
24
Description of Senior executives and officers :
Name Position Educational Date of Last Five (5)
Qualification Joining in years experience
the
company
Mr. Md. Masudur Rahman Managing Director B. Sc. Engineering 02/07/2007 He was the
(Mechanical) Managing Director
of MPL & POCL.
Mr. Md. Qudrat-E-Elahi General Manager B. Sc. Engineering 15/11/2006 He served as Senior
(Marketing) & Head of (Mechanical) Executive of
Audit different capacities
in MPL.
Mr. Syed Ghyasuddin Ahmed Dy. General Manager MBA from IBA 28/07/1975 He served as Senior
(Resident) (Major in Finance Executive in sales
& Management) department.
Mr. Md. Ferdausul Karim Dy. General Manager B. Sc. Engineering 02/12/1989 He served as TM,
(Engineering & Personnel) (Civil) OM. ME
Mr. Md. Asadul Huq Dy. General Manager B.Sc. in 15/11/1983 He served as Senior
(Sales) Agriculture Executive in
chemicals
department.
Mr. Abdur Rahman Dy. General Manager B. Sc. Engineering 10/10/1987 He served as COD,
(Operations) (Civil) AE, ME, OM.
Mr. A A M Saifuddin Dy. General Manager B. Sc. 15/05/1975 He served as Senior
(Finance) Executive in Finance
Department.
Mr. Md. Nazmul Hoque Company Secretary B. Com (Hons). 21/11/1993 He served as Senior
(Accounting), Executive in Finance
CA (CC) Department.
G. Involvement of the Officers and Directors in certain legal proceedings:

No officer or Director of the company was involved in any of the following types of legal proceedings in the
last 10 (Ten) years or for the period of commercial operation:
1. Any bankruptcy petition filed by or against any company of which any officer or Director or nominee
of the Company filing the prospectus was a Director, Officer or general partner at the time of
bankruptcy or within 2(two) years prior to that time;
2. Any conviction of an officer, director or nominee in the criminal proceedings or any criminal
proceedings pending against him;
3. Any order, judgment or decree of any court of competent jurisdiction against officer, director or
nominee permanently or temporarily enjoying, barring, suspending or otherwise limiting the
involvement of any officer or director or nominee in any type of business, securities or banking
activities.
4. Any order of the Securities and Exchange Commission or other regulatory authority or foreign
financial regulatory authority suspending or otherwise limiting the involvement of any officer or
director or nominees in any type of business, securities or banking activities.
H. Certain Relationships and Related Transactions:

Transaction with related parties:
The Company has no proposed transaction nor had any transaction during the last 2(two) years with
following related parties:
1. Any director or executive officer of the company;
2. Any Director or officer;
3. Any person owning 5% or more of the outstanding stock of the issuer;
4. Any members of the immediate family(including spouse, parents, brothers, sisters, children and in-
laws) of any of the above persons;
5. Any transaction or arrangement entered into by the company or it’s holding company (BPC) for a
person who is currently a director or in any way connected with a director of either the issuer
company or any of its subsidiaries/sister concerns, or who was a director or connected in any way
with a director at any time during the last two years prior to the publication of Information document.
25
6. Any director holding any position, apart from being a director in the issuer company, in any company,
society, trust, organization or proprietorship or partnership firm.
Loans taken or given from or to any director or any person connected with the director:
No such loans was taken or given.
Pecuniary or non-pecuniary interests and facilities enjoyed by a director:
Facilities whether pecuniary or non-pecuniary enjoyed by the Directors will remain unchanged
during the publication period of the Information documents. The directors only receive the fees for
their attendance in the Board meeting and other functions. The executive directors take salary and
other benefits as per personal and compensation.
I. Executive Compensation:
Name and designation with the amount of remuneration paid to the top ten salaried officers in
the last accounting year (2005-06) :

AGRABAD, CHITTAGONG
Name and designation with the amount of remuneration paid to the top ten salaried
officers in the last accounting year (2006-07)
SL/No.CODE NAME DESIGNATION BASIC HR BONUS CPF Remarks

---- ----- ------------------------------------- ---------------------- --------- -------- ------- ------- ---------------------------------
1 961 MR. MOHAMMED ALI MD 265200 159120 44200 26520 From 26/09/05 to 18/12/06
MR. A J KHAN CHAUDHURI MD 265200 159120 44200 26520 From 18/12/06 to 02/07/07
2 MR. NIZAM UDDIN GM (MARKETING) 248400 149040 41400 24840 From 28/09/05 to 12/11/06
MR. QUDRAT-E-ELAHI GM (MARKETING) 240600 144360 40100 24060 Joined on 15/11/06
3 760 MR. SYED GHYAS UDDIN AHMED DGM (RES) 236700 142020 40100 23670
4 848 DR. SK.MD. SAYEDUR RAHMAN CMO 219600 131760 37200 21960
5 849 MR. MD. ASADUL HUQ DGM (SALES) 219600 131760 37200 21960
6 711 MR. SHAHID HOSSAIN MIAH AGM (CHE) 214500 128700 36300 21450
7 742 MR. ABDUR RAHMAN DGM (OPS) 212400 127440 36000 21240
8 768 MR. MD. FERDAUSUL KARIM DGM (ENGG) 201600 120960 33600 20160
9 920 DR. MD. MUSTAFIZUR RAHMAN MO 201300 120780 34100 20130
10 636 MR. A. A. M SAIFUDDIN DGM (FINANCE) 201300 120780 34100 20130
Note : 1. Mr. M Masudur Rahman Joined as a Managing Director as on 02/07/07. His basic pay Tk. 22,100.
Aggregate amount of remuneration paid to all officers and directors in the last
accounting year :
The aggregate amount of remuneration paid to Directors and Officers including Staff in the FY 2005-06 & the
period from July 2006 – December 2006.
The amount of remuneration represents the payment of salary & benefits of all employees including
Managing Director and Directors of the Company. The salary & benefits relating to Managing
Director and Directors of the Company for the accounting period was as follows:
(Amount in Taka)
Particulars July 2006 to December 2006 2005-2006
Directors 63,000.00 58,500.00
Employees 99,656,622.00 19,80,80,626.00
Total 99,719,622.00 19,81,39,126.00
26
Remuneration paid to any Director who was not an officer during the last accounting year :
The remuneration/honorarium paid to the directors (who were not officers) Tk. 58,500.00 during the FY
2005-06 and Tk. 63,000.00 for the period from July 2006 to December 2006
Contract with any officer or director for the payment of future compensation:
There is no such contract.
Increment of the remuneration to the officers and directors of the company in the
current year:
JOCL follows Government pay scale policy for annual increment on the basis of basic salary of permanent
officers, Employee Director(s), and employees.
J. Options granted to Officers, Directors and Employees :

The Company has not granted any option for issuance of sharers to any Officer, Director and other employee
of the Company.
K. Transaction with Promoters:

As JOCL is a Govt. owned company, the question of receiving any benefit by the promoters is irrelevant.
However, Government being the promoter of the company did not receive anything of value directly or
indirectly from any director or any person connected with the Director.
L. Tangible assets per share:

TO WHOME IT MAY CONCERN
Tangible assets per share
Net Tangible Asset Value Per Share of Jamuna Oil Company Limited is computed below :
Sl. No. Assets 31 December, 2006 30 June, 2006

Net Amount (Taka) Amount (Taka)
1. Current assets 11,816,495,056.00 6,068,666,177.00
2. Capital Work In Progress 62,464,893.00 46,705,766.00
3 Investments 175,400,000.00 175,400,000.00
4. Net fixed assets 147,130,587.00 148,889,710.00
a. Total Assets 12,201,490,536.00 6,439,661,653.00
Sl. No. Liabilities Net Amount (Taka) Amount (Taka)

1. Current liabilities 11,345,682,986.00 5,718,143,724.00
b. Total Liabilities 11,345,682,986.00 5,718,143,724.00
Net Assets (a-b) 85,58,07,550.00 72,15,17,929.00

Number of Outstanding Shares 50,00,000 50,00,000
Net Assets Value Per Share= 171.16 144.30
Net Assts ÷ Numbers of
Outstanding Shares
Diluted Net Tangible Assets Value Per Share :

The Jamuna Oil Company Limited, for 2005-2006, approved 5,000,000 bonus shares of TK. 10 each at 1:1
ratio to its existing shareholders. The above decision was approved in the 31st Annual General Meeting of the
company held om 29.06.2007.
Further, in the Extra Ordinary General Meeting held on 26.08.2007, the shareholders approved 35,000,000
bonus shares of TK. 10 each at 1:3.5 ratio to its existing shareholders.
Thus, the total number of issued and allotted shares of Jamuna Oil Company Limited, with existing shares
together with the above two allotments, stood at 45,000,000 shares.
27
Diluted Net Tangible Asset Value Per Share
Considering the above two allotments the Diluted Net Tangible Asset Value Per Share comes to
= 855,807,550 ÷ 45,000,000 = TK. 19.02
Note :
a. Net Tangible Asset Value represents book value which is based on historical cost.
b. The figures have been taken from the Audited Accounts of respective period.
Sd/ Sd/
Date : September 26, 2007
Place : Dhaka
M. Ownership of the Company’s Securities:

Sl. Name of Owners of Position in No. Of Amount in Taka % of the Comment
No. Security the company Shares securities
represented
by ownership
1 Bangladesh Petroleum Corporation 49,99,993 4,99,99,930.00 The securities
Corporation are owned as
Bangladesh Petroleum - do - 1 10.00 100% per record.
Corporation
2 Mr. Mohammad Director 1 10.00 The securities
Ishaque (Finance), are owned as
BPC per record.
3 Mr. Md. Taherul Islam Director 1 10.00 The securities
(Marketing), are owned as
BPC per record.
4 Mr. Mohammed Nurul Secretary, 1 10.00 The securities
Amin BPC are owned as
per record.
5 Mr. Mizanur Rahman Sr. General 1 10.00 The securities
Manager are owned as
(Commercial), per record.
BPC
6 Mr. Gouranga Chandra General 1 10.00 The securities
Dey Manager are owned as
(Finance), per record.
BPC
7 Mr. Md. Giasuddin General 1 10.00 The securities
Anchari Manager are owned as
(Audit), BPC per record.
Total 50,00,000 5,00,00,000.00 100%
Number of shares owned by the top ten salaried officers, directors and all other officers :
No share is owned by any salaried officers.
N. Description of Securities Outstanding or Being Offered :

Dividend, voting and preemption rights of the shares outstanding or being offered:
The share capital of the company is divided into ordinary shares carrying equal rights to vote and
receive dividend in terms of the relevant provisions of the Companies Act, 1994 and the Articles of
Association of the company. Shareholders shall have the usual voting right in person or by proxy in
connection with, among others, election of Directors & Auditors and other usual agenda of General
Meeting – Ordinary or Extra Ordinary. On a show of hand every shareholder present and every duly
authorized representative of a shareholder present at a General Meeting shall have one vote and on a
poll every shareholder present in person or by proxy shall have one vote for every share held by
him/her.
28
In case of any additional issue of shares for raising further capital, the existing shareholders shall be
entitled to Right Issue of shares in terms of the guidelines issued by the SEC from time to time.
Conversion and liquidation rights of any preferred stock outstanding or being offered:
If the company at any time issues convertible preference shares or Debenture or Bond with the
consent of SEC, such holders of securities shall be entitled to convert such securities into ordinary
shares if it is so determined by the company.
Subject to the provisions of the Companies Act, 1994, Articles of Association of the Company and
other relevant Rules in force, the shares, if any, of the company are freely transferable, the company
shall not charge any fee for registering transfer of shares. No transfer shall be made to firms, minors
or persons of unsound mental health.
Payment of dividends to common or preferred stockholders:
a) The profit of the company, subject to any special right relating thereto created or authorized to be
created by the Memorandum of Association subject to the provision of the Articles of Association,
shall be divisible among the members in proportion to the capital paid up on the shares held by them
respectively.
b) No higher dividend shall be declared than is recommended by the Directors, but the Company in its
General Meeting may declare a smaller dividend. The declaration of Directors as to the amount of net
profit of the company shall be conclusive.
c) No dividend shall be payable except out of profits of the company or any other undistributed profits.
Dividends shall not carry interest as against the Company.
d) The Directors may, from time to time, pay the members such interim dividend as in their judgments
the financial position of the company may justify.
e) A transfer of shares shall not pass the right to any dividend declared thereon before the registration
of transfer.
Others material rights of common or preferred stockholders:

The Shareholders shall have the right to receive all periodical reports and statements, audited as well
as un-audited, published by the company from time to time. The Directors shall present the financial
statements as required under the Law and International Accounting Standards. Financial Statements
will be prepared in accordance with International Accounting Standards, consistently applied
throughout the subsequent periods and present with the objective of providing maximum disclosure
as per law and International Accounting Standard to the shareholders regarding the Financial and
operational position of the company.
In case of any declaration of stock dividend by issue of bonus shares, all shareholders shall be
entitled to it in proportion to their shareholdings on the date of book closure/ record date for the
purpose.
The shareholders holding not less than 10% of the issued/fully paid up capital of the company shall
have the right to requisition Extra-ordinary General Meeting of the Company as provided under
Section 84 of the Companies Act, 1994.
O. Debt Securities:
Terms and conditions of debt securities that the company may have issued or to be
issued:
The Company did not issue any debt securities and has no plan to issue any debt securities within next six
months.
29
P. Financial Statement Requirements:
AUDITORS’ REPORT
TO
THE MEMBERS OF
We have audited the accompanying Balance Sheet of JAMUNA OIL COMPANY LIMITED as on
June 30, 2006 and the related Profit and Loss Account along with Cash Flow Statement for the year
then ended. These financial statements are the responsibility of the management of the company.
Our responsibility is to express an independent opinion on these financial statements based on our
audit.
Basis of opinion:
We have conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining on
a test basis, evidences supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
1. The required provision for gratuity is Tk. 16 crore against which Tk. 5 crore has been
provided.
2. Included in debtors of Tk. 44,371,237.15 due from Balaka Filling station recovery of which is
uncertain but no provision there against has been made in the accounts.
3. Balance confirmation from respective parties under different head of accounts including from
the following parties were not obtained and furnished to us:
Bangladesh Petroleum Corporation
Padma Oil Co. Ltd.
Meghna Oil Co. Ltd.
Eastern Refinery Ltd.
Sylhet Gas Field Ltd.
Asphaltic Bitumen Plant
Mobil Jamuna Lubricants Ltd.
4. Investment in shares of Mobil Jamuna Fuels Limited (MJFL) is Taka 87,700,000 (877 shares
of Taka 100,000 each), against which 110 shares of Taka 100,000 each have been allotted
to Jamuna Oil Company Ltd.
Opinion:
Except for the effect of the matter noted in preceding paragraph 1 and 2, in our opinion and to the
best of our information and according to the explanations given to us, the Balance Sheet, Profit and
Loss Account and Cash Flow Statement respectively exhibit a true and fair view of the state of
affairs of the company as on June 30, 2006 and of its profit as well as cash flow for the year then
ended and that the Balance Sheet, Profit and Loss Account and Cash Flow Statement have been
drawn up in conformity with the law wih particular reference to note 1(c) (xii).
30
We also report that:
(i) Except for matters described in preceding para 3 to 4 above, we have obtained all the
information and explanations which were necessary for the purposes of our audit;
(ii) Proper books of account as required by law were maintained by the company so far as it
appeared from our audit of those books; and
(iii) The Balance sheet, Profit & Loss Account and Cash Flow Statement dealt with by the report
are in agreement with the books of account maintained by the company and audited by us.
Sd/ Sd/
Dated : June 13, 2007

Place: Dhaka
31
BALANCE SHEET
AS AT 30TH JUNE, 2006
2005-2006 2004-2005
Notes TAKA TAKA
SOURCES OF FUND
SHAREHOLDERS' EQUITY :
Share Capital 2 50,000,000 50,000,000

Proposed issued of Bonus Share 50,000,000 -
Capital Reserve 3 152,833,103 152,833,103
General Reserve 4 465,000,000 425,000,000
Surplus/(Deficit) 3,684,826 (35,047,259)
721,517,929 592,785,844
APPLICATION OF FUND
TANGIBLE FIXED ASSETS :

(At cost less depreciation) 5 148,889,710 156,610,713
Capital Work-in-Progress 6 46,705,766 24,040,322
195,595,476 180,651,035
INVESTMENT 7 175,400,000 175,000,000
CURRENT ASSETS : 6,068,666,177 4,855,080,332

Stock-in-Trade 8 2,430,889,081 3,311,237,473
Stores & Spares 9 75,269,299 65,618,590
Book Debts 10 345,752,241 291,126,421
Advances and Deposits 11 2,802,860,435 853,361,088
Income Tax 12 (5,653,127) 82,645,232
Cash & Cash Equivalents 13 419,548,248 251,091,528
CURRENT LIABILITIES : (5,718,143,724) (4,617,945,523)

Sundry Creditors 14 5,718,143,724 4,617,945,523
NET CURRENT ASSETS 350,522,453 237,134,809

NET ASSETS 721,517,929 592,785,844
The annexed notes form part of these financial statements.

Approved by the board on June 13, 2007 and signed on its behalf by :
Sd/ Sd/ Sd/

DIRECTOR DIRECTOR SECRETARY
Subject to our separate report of even date annaxed
Sd/ Sd/
32
PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED 30TH JUNE, 2006
2005-2006 2004-2005
Notes TAKA TAKA
Net Earning on Petroleum Product 15 489,388,099 315,039,891
LESS :
Administrative, Selling & Distribution Expenses 16 277,251,988 216,909,003
Financial Expenses 17 67,417,174 67,729,759
Depreciation/Amortization (Note-5) 19,759,410 19,029,700
364,428,572 303,668,462
Operating Profit/(Loss) 124,959,527 11,371,429

Add : Other Income 18 136,863,721 52,708,150
261,823,247 64,079,579
Less : Interest paid back to BPC as per their demand - 59,251,279
261,823,247 4,828,300
Less : Contribution to Workers' (Profit)

Participation & Welfare Funds 13,091,162 241,415
Net Profit/(Loss) before income tax 248,732,085 4,586,885
Provision for Income Tax (120,000,000) (1,721,000)
Profit after Income Tax 128,732,085 2,865,885
Add : Un-appropriated profit/(loss) brought forward (35,047,259) (37,913,144)
Un-appropriated Profit/(Loss) 93,684,826 (35,047,259)
Appropriation of Profit :
Proposed issued of bonus share 50,000,000 -
Transferred to general reserve 40,000,000 -
Transferred to retained earning 3,684,826 (35,047,259)
93,684,826 (35,047,259)

Sd/ Sd/ Sd/

Sd/ Sd/
33
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH JUNE, 2006
2005-2006 2004-2005
Notes TAKA TAKA
OPERATING ACTIVITIES :
Profit/(Loss) before Income Tax 248,732,085 4,586,885
Depreciation & Amortisation on operating fixed assets 5 19,759,410 19,029,700
Income tax paid 12 (31,701,641) (27,650,572)
Profit on sales of fixed assets 18.01 (47,233) (307,396)
Profit/(Loss) before Income Tax 236,742,621 (4,341,383)
(Increase)/Decrease in :
Stocks 8,9 870,697,683 (1,300,732,275)
Book debts 10 (54,625,820) 299,248,474
Advances and Deposits 11 (1,949,499,347) 920,240,021
Increase/(Decrease) in creditors 14 1,100,198,201 207,175,790
Inflow from operating activities 203,513,338 121,590,627
INVESTING ACTIVITIES :
Addition of Fixed assets 5,6 (34,727,618) (31,283,024)
Sales proceed of Fixed Assets 18.01 71,000 325,879
Investment to MJFL (200,000) -
Investment to MJLL (200,000) -
Out flow from investing activities (35,056,618) (30,957,145)
FINANCING ACTIVITIES :
Dividend Paid - (62,500,000)
Net Cash Inflow 168,456,720 28,133,482
Check
Cash and cash equivalents
Opening 13 (251,091,528) (222,958,046)
Closing 419,548,248 251,091,528
168,456,720 28,133,482

Sd/ Sd/ Sd/

Sd/ Sd/
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30TH JUNE 2006
FORMING AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
1.00 SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATERIAL INFORMATION
a. Status of the Company

The Company was formed as a private limited company on 12th March, 1975 under the
Companies Act, 1913 (now 1994). The company has acquired all the properties, rights, interests
and assets of Bangladesh National Oils Limited (ex-Pakistan National Oils Limited) which were
vested in Bangladesh Petroleum Corporation under an agreement entered into between the
company and the corporation, based on the audited accounts of the company as on 31st
December, 1976. The company has also acquired all the properties, rights and interests and assets
of Indo-Burma Petroleum Company Limited (a subsidiary of Bangladesh Petroleum Corporation)
from 1st January, 1986 based on an audited accounts of IBPCL as on 31st December, 1985.
Vendors agreement to this effect is yet to be executed. The Company has been functioning as a
subsidiary of Bangladesh Petroleum Corporation since its establishment.
b. Activities of the Company

The main business of the company is marketing of refined petroleum oil, lubricants, L.P. gas and
bitumen. The business of the company also includes bottling and marketing of pesticides.
c. Significant accounting policies

i) Convention of accounts
The accounts of the company have been prepared in accordance with the historical cost
convention under generally accepted accounting principles.
ii) Fixed Assets
Fixed assets those acquired from Bangladesh National Oils Ltd. and Indo-Burma Petroleum
company Ltd. have been stated at transferred price less accumulated depreciation. The other fixed
assets are stated at historical cost less accumulated depreciation. Capital work-in-progress
represents the cost of acquisition of land, land development and construction etc. but not put into
use.
iii) Depreciation/Amortisation
Lease hold lands are amortized according to the amortization schedule.

Fixed assets other than free hold land are depreciated on straight line method at rates given
below:
Category of Assets % Annual Rate

Buildings 5 - 10
Tanks and Pipelines 5 - 15
Machinery 7.5
Up-Country Depot 7.5
Service and filling Station 10
Pumps, Filling & Fire Fighting Equipment 5 - 15
Laboratory & Engineering Equipment 7.5 - 15
Vehicles & Other Rolling Stock 20
Railway and Jetty Sides 5 - 7.5
Furniture and Fittings 5 - 20
Returnable Packages 20
Oil Tanker M. T. JAMUNA 10
Fifty percent of full years depreciation is charged in the year of acquisition. No depreciation is
charged in the year of disposal.
The cost and accumulated depreciation of depreciable assets retired or otherwise disposed of are
eliminated from the assets and accumulated depreciation, and any gain or loss on disposal is reflected
35
in the income statement which is determined with reference to the carrying value (net book value) of
the assets and the net sale proceeds.
iv) Mode of Stock valuation
Petroleum Products
These are valued at "ERL" Transfer Price.
Other Products and Stores and Spares

These are valued at cost on weighted average method.
v) Trade debtors
These are carried at original invoice amount. This is considered good and collectible, and therefore,
no amount was written off as bad debt and no debt was considered doubtful to provide for.
vi) Cash and Cash Equivalents

Cash in hand and cash at banks have been considered as the cash and cash equivalents for
preparation of these financial statements as there was insignificant risk of changes in value of these
current assets.
vii) Creditors and Accrued Expenses

Liabilities are recognised for amounts to be paid in the future for goods and services received,
whether or not billed by the supplier.
viii) Employee Benefit Obligations

The company operates a contributory provident fund and gratuity scheme for its permanent
employees. Provident fund is administered by a Board of Trustees and is funded by contributions
partly from employees and partly from the company at pre-determined rates. These contributions are
invested separately from the company’s assets. There is also an unfunded gratuity scheme and the
employees are entitled to gratuity benefit after completion of minimum service years in the company.
The accounting of gratuity was previously made on cash basis. This year the company has changed
the policy and followed accrual basis. Gratuity is calculated on the last basic pay and is payable at
the rate of two months basic pay for every completed year of service. The basic pay of employees
other than officers are determined according to the agreement between company and CBA. There is
also a group insurance for the employees.
ix) Income Tax

Jamuna Oil Company Ltd. is a Private Limited Company, therefore the effective rate is 40% as per
income tax law.
x) Workers' (Profit) Participation & Welfare Funds (W.P.P & W.F)

As per the Act, provision @ 5% on net profit for W.P.P & W.F has been made for the financial year
2005 – 2006.
xi) Revenue Recognition

Margin on products supplied by BPC and other Gas Companies’ are recognised after delivery of
goods.
xii) Change in Presentation of Accounts

Jamuna Oil Company Limited is engaged in marketing oil products. The income it earns is termed as
‘Margin’ which is fixed and determined by the Govt. Jamuna has no control over in fixing the price
of the products.
The company records ‘Purchase’ for receiving supply and ‘Sales’ for delivery of the same.
Accordingly, the accounts are being presented showing purchase for supply and sales for delivery of
the products.
The company, considering the nature of business and the nature of its earning (which is fixed), has
changed the presentation of accounts.
36
According to changed policy of presentation of accounts, ‘Margin’ as fixed by the Govt. has been
recognised as Revenue Earning and presented in accounts under the head ‘Net Earnings’.
d. General :
i) Components of the Financial Statements

Financial Statements includes the following components :
Balance Sheet as at 30.06.2006;
Profit and Loss Account for the year ended 30.06.2006;
Cash Flow Statement for the year ended 30.06.2006; and
Notes to the financial statements.
ii) Reporting Period

Financial Statements of the company cover one year from 1st July to next 30th June consistently.
iii) Reporting Currency and Level of Precision

The figures in the financial Statements represent Bangladesh Currency (Taka) which have been
rounded off to the nearest Taka.
iv) Comparative information

Comparative information have been disclosed in respect of year 2004-2005.
Figures of the year 2004-2005 have been rearranged wherever considered necessary to conform to
current year’s presentation.
2.00 SHARE CAPITAL : Tk. 50,000,000

2005 – 2006 2004 – 2005
Taka Taka
AUTHORISED : 100,000,000 100,000,000
10,000,000 ordinary shares of TK. 10 each
ISSUED, SUBSCRIBED AND PAID-UP :
5,000,000 Ordinary shares of Tk.10 each
fully paid for consideration otherwise than in cash. 50,000,000 50,000,000
3.00 CAPITAL RESERVE : Tk.152,833,103

2005 – 2006 2004 – 2005
Taka Taka
This represents :
1. Capital gain on sale of land & structure at Chandpur 3,591,102 3,591,102
2. Capital gain on sale of 12.35 acres Land at Patenga
to Joint Venture Co. as detailed below :
Sale of Land 175,000,000 175,000,000
Less: Original Cost of Land (14,428) (14,428)
Related expenses against transfer of land (25,743,571) (25,743,571)
149,242,001 149,242,001
152,833,103 152,833,103
37
4.00 GENERAL RESERVE : TK. 465,000,000 (2005-TK. 425,000,000)
Year wise break-up is as follows:
Year Taka
1973 5,000,000
1974 5,000,000
1975(1/2 Year) 2,500,000
1975-76 5,000,000
1976-77 7,500,000
1977-78 6,000,000
1978-79 20,000,000
51,000,000
Less : 1979-1980 22,500,000
a) Paid to BPC 2,500,000
b) Transfer to share capital 20,000,000
28,500,000
1981-1982 5,000,000
1982-1983 10,000,000
1985-1986 6,000,000
1986-1987 4,900,000
1987-1988 6,341,000
1990-1991 9,259,000
1991-1992 5,000,000
1992-1993 5,000,000
1994-1995 10,000,000
1995-1996 40,000,000
1996-1997 50,000,000
1997-1998 60,000,000
1998-1999 30,000,000
1999-2000 30,000,000
2000-2001 45,000,000
2001-2002 65,000,000
2002-2003 15,000,000
2005-2006 40,000,000
465,000,000
5.00 TANGIBLE FIXED ASSETS : TK. 148,889,710
The movement of fixed assets is as follows :
COST DEPRECIATION Written
Balance as Addition Sales/ Balance Balance as Provided For Sales/ Balance down
at 01.07.05 during Adj. as at at 01.07.05 during current Adj. as at value as at
Particulars
the year during 30.06.06 the year year during 30.06.06 30.06.06
the year Purchase the year
Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka
Freehold land 9,827,747 -- -- 9,827,747 -- -- -- -- -- 9,827,747
Leasehold land 10,191,301 -- -- 10,191,301 2,509,545 104,889 -- -- 2,614,434 7,576,867
Building 52,929,235 147,470 -- 53,076,705 39,800,460 1,759,074 3,687 -- 41,563,221 11,513,484
Tank & Pipe lines 57,934,584 162,194 -- 58,096,778 38,991,296 2,873,286 7,490 -- 41,872,072 16,224,706
Plant & Machinery 3,394,471 -- -- 3,394,471 2,578,071 136,437 -- -- 2,714,508 679,963
Up-country Depots 223,066,675 10,023,431 -- 233,090,106 128,357,011 12,020,404 375,879 -- 140,753,294 92,336,812
Service and Filling Stations 19,633,476 -- 56597 19,576,879 19,592,021 13,372 -- 56,592 19,548,801 28,078
Pump Filling & Fire Fighting Equipment 19,689,519 551,030 -- 20,240,549 14,346,183 804,694 27,551 -- 15,178,428 5,062,121
Laboratory office & Engineering Equipment 18,898,450 957,206 -- 19,855,656 15,391,092 1,002,574 61,270 -- 16,454,936 3,400,720
Vehicles and other Rolling Stocks 33,459,520 -- -- 33,459,520 33,174,466 202,199 -- -- 33,376,665 82,855
Railway Siding and Jetty 4,485,604 -- -- 4,485,604 4,485,593 -- -- -- 4,485,593 11
Furniture and Fixture 10,047,519 220,843 57,582 10,210,780 7,721,656 361,083 5,521 33,820 8,054,440 2,156,340
Returnable Packages 171,075 -- -- 171,075 171,072 -- -- -- 171,072 3
Oil Tanker MT Jamuna & Others 16,259,663 -- -- 16,259,663 16,259,660 -- -- -- 16,259,660 3
2005-2006 479,988,839 12,062,174 114,179 491,936,834 323,378,126 19,278,012 481,398 90,412 343,047,124 148,889,710
2004-2005 455,870,440 25,739,271 1,620,872 479,988,839 305,950,816 18,005,114 1,024,586 1,602,390 323,378,126 156,610,713
38
6.00 CAPITAL WORK-IN-PROGRESS - TK. 46,705,766
Particulars Balance as on Addition Total Capitalised Balance as on
01.07.2005 30.06.2006
TK. TK. TK. TK. TK.
MURADPUR HOUSING COMPLEX :
(Addition of cost of 1.216 acres of land) 315,653 (315,653) -- -- --
BHAIRAB BAZAR DEPOT :
Construction of Wall -- 294,470 294,470 294,470 --
KAWRAN BAZAR PROJECT :
Approach Road, Building design & drawing 22,132,886 11,606,168 33,739,054 -- 33,739,054
RANGPUR DEPOT :
Construction of Pump House -- 477,543 477,543 -- 477,543
Construction of 250 M.T. (MS) Tank -- 543,251 543,251 -- 543,251
Development of Land -- 186,401 186,401 186,401 --
DAULATPUR DEPOT:
Construction of RCC. Work -- 281,401 281,401 281,401 --
SRIMONGOL DEPOT :
Construction of 750 M.T. Cap. SKO Tank 546,211 -- 546,211 -- 546,211
Construction of 750 M.T. Cap. HSD Tank 546,212 -- 546,212 -- 546,212
Construction of 350 M.T.Tank -- 2,575,181 2,575,181 2,575,181 --
Development of land -- 687,696 687,696 687,696 --
Construction of Tin Shed 49,360 -- 49,360 -- 49,360
Development of pump house Tank Lorry Gantree 450,000 727,223 1,177,223 1,177,223 --
Construction of light post & wiring -- 470,044 470,044 470,044 --
Construction of office Building -- 583,970 583,970 -- 583,970
Construction of Gantree house -- 192,531 192,531 192,531 --
CHITTAGONG TERMINAL :
Construction of cyclone fencing -- 530,183 530,183 -- 530,183
FATULLAH DEPOT :
Construction of Boundary Wall -- 874,339 874,339 874,339 --
PARBATIPUR DEPOT :
Constructions of Oil Tanks -- 9,689,982 9,689,982 -- 9,689,982
HaliShahar Housing Complex:
Construction of Boundary Wall -- 147,470 147,470 147,470 --
Grand Total Tk. 24,040,322 29,552,200 53,592,522 6,886,756 46,705,766
2004-2005 18,496,568 14,688,809 33,185,377 9,145,055 24,040,322
7.00 INVESTMENT (At Cost) : TK. 175,400,000 (2004-2005 : Tk. 175,000,000)
Joint Venture Financing - 2005-2006

Taka
a. 877 Shares of Tk. 100,000 each in Mobil Jamuna Lubricants Ltd. 87,700,000
b. 877 Shares of TK. 100,000 each in Mobil Jamuna Fuels Ltd. 87,700,000
TK. 175,400,000
8.00 STOCK-IN-TRADE : TK. 2,430,889,081
This consists of : 2005-2006 2004-2005

Quantity (Ltr) Taka Quantity (Ltr) Taka
Stocks (including stock in transit) 70,107,611 2,298,735,763 124,929,444 3,151,402,229
2,946 1,284,456 2,833 1,103,454
L.P. Gas (Cylinder) 1,091,481.75 97,430,133 82,3193.75 57,944,004
Imported Lubricants 113,331.57 4,513,435 206,026.57 8,971,820
Lubricants 41,095.5 8,122,466 26,462.4 3,868,246
Imported Grease 164.8 4,327,184 1,814.9 35,597,237
Bitumen (M.T) 2,414,413,437 3,258,886,991
16,210,520 51,702,012
Lubricants raw materials 265,124 648,470
Pesticides
2,430,889,081 3,311,237,473
39
8.01 Stocks (including stock in transit) : Tk. 2,298,735,763
This consists of : 2005-2006 2004-2005

HOBC 3849954 214,134,442 3641540 122,537,821
MS 4989005 267,759,898 9258194 311,538,228
SKO 19940696 633,715,319 26649623 667,306,560
HSD 28801787 905,816,201 77212212 1,920,267,712
LDO 730946 25,239,565 904098 19,510,435
FO 10351898 202,379,606 4675173 54,419,014
JBO 1437234 49,627,690 2585183 55,788,249
Condensate 6091 63,042 3421 34,210
70,107,611 2,298,735,763 124,929,444 3,151,402,229
9.00 STORES & SPARES : TK. 75,269,299
This consists of : 2005-2006 2004-2005

Taka Taka
Non Returnable Empty packages 1,402,193 1,789,042
L.P.G. Store Materials 35,051,694 35,055,294
Chittagong Terminal Stores 34,380,040 23,857,308
Depot Stores 3,646,870 4,127,726
Pesticides Materials 788,502 789,220
75,269,299 65,618,590
10.00 BOOK DEBTS : TK. 345,752,241

2005-2006 2004-2005
This consists of :
Taka Taka
LPG distributors A/C 25,996,808 9,154,307
Pesticide distributors A/C - 21,271
Sundry Debtors (POL products) 325,382,655 281,493,815
Sundry Debtors (Bitumen) - 6,084,250
Provision for Doubtful debts (5,627,222) (5,627,222)
345,752,241 291,126,421
This is unsecured but considered good.
11.00 ADVANCES AND DEPOSITS : TK. 2,802,860,435
This consists of :
Advances 2,566,123,151 801,575,911

Deposits 236,737,284 51,785,177
2,802,860,435 853,361,088
12.00 INCOME TAX : TK. (5,653,127)
Year-wise details are as follows :
Accounting year Tax paid Tax Provided Balance (Debit)

30.06.1988 to 30.06.2003 Taka Taka Taka
30.06.2004 34,631,255 3,403,844 31,227,411
30.06.2005 29,238,248 - 29,238,248
30.06.2006 23,900,573 1,721,000 22,179,573
31,701,641 120,000,000 (88,298,359)
119,471,717 125,124,844 (5,653,127)
40
13.00 CASH & CASH EQUIVALENTS : TK. 419,548,248
This consists of :
With Banks in :
Short Term deposits A/C 1,133,809,626 609,860,012
Current Account & Disbursement A/C (Note-13.01) (715,020,541) (359,537,408)
418,789,085 250,322,604
In hand 759,163 768,924
419,548,248 251,091,528
13.01 Current account & Disbursement account : Tk. (715,020,541)

This consists of as follows:
a) Cash Credit A/C (Secured) (380,002,781) (20,000,000)

b) Current A/C (335,017,760) (339,537,408)
(715,020,541) (359,537,408)
14.00 SUNDRY CREDITORS : TK. 5,718,143,724

This comprises of : 2005-2006 2004-2005
Taka Taka
Liabilities for Goods Supplied 2,990,302,618 2,951,754,611
Liabilities for Expenses 715,764,204 572,835,586
Liabilities for Other Finance 2,012,076,902 1,093,355,326
5,718,143,724 4,617,945,523
15.00 NET EARNING ON PETROLEUM PRODUCT : TK. 489,388,099

Product-wise details are as follows :
Products
i) Main Product:
HOBC 6,094,586 3,823,086
MS 96,966,081 16,242,823
SKO 48,368,825 32,659,655
HSD 228,694,780 120,498,624
LDO 66,823 -
FO 39,254,523 101,132,820
JBO 847,190 285,030
420,292,808 274,642,038
ii) Bitumen 10,648,187 5,460,062
iii) Lubricants & Grease 51,984,458 29,897,279
iv) LPG 6,462,646 5,040,512
489,388,099 315,039,891
16.00 ADMINISTRATIVE, SELLING & DISTRIBUTION EXPENSES : TK. 277,251,988

This consists of as follows :
Storage, Selling & Administration 29,302,281 30,133,236
Payroll & Benefits 198,080,503 148,474,306
Contributory Provident Fund 3,853,209 3,612,400
Rent & Other Taxes 17,835,038 7,285,736
Travelling & Office Transport 8,243,875 8,630,059
Fuel & Electricity 4,616,521 4,642,087
Repair & Maintenance 7,277,896 10,210,297
Insurance 5,171,868 3,397,882
Audit Fee (statutory) 80,000 80,000
Directors Fee 58,500 93,000
Management Service Charge 350,000 350,000
Pesticide Expenses 2,382,297 -
277,251,988 216,909,003
During 2005-2006 financial year, 563 employees have received Tk. 3,000 or more per month as salary and
other benefits.
41
17.00 FINANCIAL EXPENSES : TK. 67,417,174 (2004 - 2005 : TK. 67,729,759)
This is payable to BPC.
18.00 OTHER INCOME : TK. 136,863,721

2005-2006 2004-2005
This comprises of :
Taka Taka
Interest on Bank deposits 61,113,223 10,000,000
Interest on house building loan 1,073,455 1,022,515
Interest on Car loan 84,042 122,210
Handling Commission 17,276,535 18,618,414
Income from product handling 34,475,279 4,411,083
Profit on sale of LPG materials 900 802
Net profit/(Loss) on carrying Products by MT JAMUNA 4,793,541 650,027
Net Profit on Tanker Operation 15,020,277 10,126,002
Net Profit/(Loss) on sale of Pesticides -- (4,981,202)
Profit/(Loss) on sale of fixed Assets ( 18.01) 47,233 307,396
Sundries 878,561 1,647,659
Deposit forfeited 12,000 259,242
M.J.L.L Dividend - for 31.12.2002 at Tk. 12,000 Per share -- 10,524,000
Tanker Rent 12,000 --
License fee 2,076,673 --
136,863,721 52,708,150
18.01 PROFIT/(LOSS) ON SALE OF FIXED ASSETS : Tk. 47,233
Accumulated
Particulars Original Cost Book Value Sales Proceed Profit/(Loss)
Depreciation
Furniture & Fixture 57,582 33,820 23,762 28,000 4,238
Dispensing Unit 53,720 53,717 3 40,000 39,997
Air Compressor 2,666 2,665 1 2,500 2,499
Tyre 211 210 1 500 499
114,179 90,412 23,767 71,000 47,233
19.00 CAPITAL EXPENDITURE COMMITMENTS :
The capital expenditure commitments as on 30th June 2006 was Tk. 210.43 lac (30th June 2005 Tk.267.77 lac)
20.00 CONTINGENT LIABILITIES :

There was no sum for which the company is contingently liable as on 30.06.2006
Details of product wise operational & transit loss/(gain)

Annexure-A
Lub &
Particulars HOBC MS SKO HSD LDO FO JBO LPG Condensate Total
Grease
Working Loss (.1) 6,567,591 5,093,549 (9,326,692) 3,299,793 (66,489) (23,388,943) 166,890 (111,247) 25,288 64,318 (17,675,942)
Transit Loss 4,342,033 6,969,112 17,466,514 68,087,099 - 1,596,717 638,684 - - - 99,100,160
Freight Loss (.2) 72,873 105,602 484,169 66,905 - (75,146) 5,733 - - - 660,137
Total : Tk. 82,084,354
1. Operational Gain : Taka 17,015,805

a) Working Gain : TK 17,675,942 (Main Product Tk.17,654,301 and Lub , Grease & LPG Tk 21,641. )
b) Freight Loss : Tk. 660,137
2. Transit Loss : Tk. 99,100,160
42
Audited Financial Statements of JAMUNA OIL COMPANY LTD. as of 31.12.2006 as included in the
ID are older than 180 days and the company could not prepare and audit the Financial
Statements up to 30.06.2007 as required under the provisions of the Companies Act, 1994.
AUDITORS’ REPORT
TO
THE MEMBERS OF
We have audited the accompanying Balance Sheet of JAMUNA OIL COMPANY LIMITED as on
December 31, 2006 and the related Profit and Loss Account along with Cash Flow Statement for the
period from 1st July, 2006 to December 31, 2006. These financial statements are the responsibility of the
management of the company. Our responsibility is to express an independent opinion on these financial
statements based on our audit.
Basis of opinion:
We have conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining on a test basis, evidences
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by the management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
Our audit reveals that:
1. The required provision for gratuity is Tk. 162,730,521 against which Tk. 6 crore has been
provided.
2. Included in debtors of Tk. 44,371,237.15 due from Balaka Filling station recovery of which is
uncertain but no provision there against has been made in the accounts.
3. Balance confirmation from respective parties under different head of accounts including from the
following parties were not obtained and furnished to us :
Bangladesh Petroleum Corporation

Padma Oil Co. Ltd.
Meghna Oil Co. Ltd.
Eastern Refinery Ltd.
Sylhet Gas Field Ltd.
Asphaltic Bitumen Plant
Mobil Jamuna Lubricants Ltd.
4. Investment in shares of Mobil Jamuna Fuels Limited (MJFL) is Taka 87,700,000 (877 shares of
Taka 100,000 each), against which 110 shares of Taka 100,000 each have been allotted to Jamuna
Oil Company Ltd.
43
Opinion :
Except for the effect of the matters noted in preceding paragraph 1 to 3 in our opinion and to the best of
our information and according to the explanations given to us, the Balance Sheet, Profit and Loss
Account and Cash Flow Statement respectively exhibit a true and fair view of the state of affairs of the
company as on December 31, 2006 and of its profit as well as cash flow for the period ended and that the
Balance Sheet, Profit and Loss Account and Cash Flow Statement have been drawn up in conformity
with the law with particular reference to note 1(c) (xi) and 1 (d) (iv).
We also report that :
(i) Except for matters described in preceding para 3 to 4 above, we have obtained all the information
and explanations which were necessary for the purposes of our audit;
(ii) Proper books of account as required by law were maintained by the company so far as it appeared
from our audit of those books; and
(iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by the report are
in agreement with the books of account maintained by the company and audited by us.
Sd/ Sd/
Dated : 26.09.07
Place : Dhaka.
44
BALANCE SHEET
AS AT 31ST DECEMBER, 2006
31 December, 2006 30 June, 2006

Notes Taka Taka
SOURCES OF FUND
SHAREHOLDERS' EQUITY :
Share Capital 2 50,000,000 50,000,000

Proposed issued of bonus share 50,000,000 50,000,000
Capital Reserve 3 152,833,103 152,833,103
General Reserve 4 465,000,000 465,000,000
Surplus/(Deficit) 137,974,447 3,684,826
855,807,550 721,517,929
APPLICATION OF FUND
TANGIBLE FIXED ASSETS:

(At cost less depreciation) 5 147,130,587 148,889,710
Capital Work-in-Progress 6 62,464,893 46,705,766
209,595,480 195,595,476
INVESTMENT IN SHARES 7 175,400,000 175,400,000
CURRENT ASSETS : 11,816,495,056 6,074,319,304

Stock-in-Trade 8 3,657,519,195 2,430,889,081
Stores & Spares 9 75,144,244 75,269,299
Book Debts 10 366,715,610 345,752,241
Advances and Deposits 11 5,258,877,157 2,802,860,435
Cash & Cash Equivalents 12 2,458,238,850 419,548,248
CURRENT LIABILITIES : (11,345,682,986) (5,723,796,851)

Income Tax 13 78,171,478 5,653,127
Sundry Creditors 14 11,267,511,508 5,718,143,724
NET CURRENT ASSETS 470,812,070 350,522,453

NET ASSETS 855,807,550 721,517,929
Sd/ Sd/ Sd/

Subject to our separate report of even date annexed
Sd/ Sd/
Dated : 26.09.07
Place : Dhaka
45
PROFIT & LOSS ACCOUNT
FOR THE PERIOD FROM JULY 01, 2006 TO DECEMBER 31, 2006
July 1, 2006 to July 1, 2005 to

December 31, 2006 June 30, 2006
Notes Taka Taka
Net Earning on Petroleum Product 15 341,796,200 489,388,099
LESS :
Administrative, Selling & Distribution Expenses 16 131,335,090 277,251,988
Financial Expenses 17 31,646,332 67,417,174
Depreciation/Amortization (Note-5) 9,597,495 19,759,410
172,578,917 364,428,572
Operating Profit/(Loss) 169,217,283 124,959,527
Add: Other Income 18 66,877,055 136,863,721
236,094,338 261,823,248
Less: Contribution to Workers' (Profit)
Participation & Welfare Funds 11,804,717 13,091,162
Net Profit/(Loss) before income tax 224,289,621 248,732,085
Provision for Income Tax (90,000,000) (120,000,000)
Profit after Income Tax 134,289,621 128,732,085
Add: Un-appropriated profit/(loss) brought forward 3,684,826 (35,047,259)
Un-appropriated Profit /(Loss) 137,974,447 93,684,826
Proposed issued of bonus share - 50,000,000
Transferred to general reserve - 40,000,000
Transferred to retained earnings 137,974,447 3,684,826
137,974,447 93,684,826
Sd/ Sd/ Sd/

Sd/ Sd/
Dated : 26.09.07
Place : Dhaka
46
CASH FLOW STATEMENT
July 1, 2006 to July 1, 2005 to

December 31, 2006 June 30, 2006
Notes Taka Taka
OPERATING ACTIVITIES :
Profit /(Loss) before Income Tax 224,289,621 248,732,085

Depreciation & Amortisation on operating fixed assets 5 9,597,495 19,759,410
Income tax paid 12 (17,481,649) (31,701,641)
Profit on sales of fixed assets 18.01 (1,038,631) (47,233)
Operating Profit/(Loss) before Income Tax: 215,366,836 236,742,621
(Increase)/Decrease in :
Stocks 8,9 (1,226,505,059) 870,697,683
Book debts 10 (20,963,369) (54,625,820)
Advances and Deposits 11 (2,456,016,722) (1,949,499,347)
Increase/(Decrease) in creditors 14 5,549,367,784 1,100,198,201
Net Cash Inflows/(Out Flows) from Operating activities : (A) 2,061,249,470 203,513,338
INVESTING ACTIVITIES :
Addition of Fixed assets 5, 6 (23,680,308) (34,727,618)
Sales proceed of Fixed Assets 18.01 1,121,440 71,000
Investment to MJFL - (200,000)
Investment to MJLL - (200,000)
Net Cash Inflows/(Out Flows) from Investing activities : (B) (22,558,868) (35,056,618)
FINANCING ACTIVITIES :
Net Cash Inflows/(Out Flows) from Financing activities: (C) - -
Net Cash Inflows/(Out Flows) from All Activities: (A+B+C) 2,038,690,602 168,456,720
Check
Cash and cash equivalents :
Opening 13 (419,548,248) (251,091,528)
Closing 2,458,238,850 419,548,248
2,038,690,602 168,456,720
Sd/ Sd/ Sd/

Sd/ Sd/
Dated : 26.09.07
Place : Dhaka
47
NOTES TO THE FINANCIAL STATEMENTS

FORMING AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
1.00 SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATERIAL INFORMATION
a. Status of the Company

The Company was formed as a private limited company on 12th March, 1975 under the
Companies Act, 1913 (now 1994). The company has acquired all the properties, rights, interests
and assets of Bangladesh National Oils Limited (ex-Pakistan National Oils Limited) which were
vested in Bangladesh Petroleum Corporation under an agreement entered into between the
company and the corporation, based on the audited accounts of the company as on 31st December,
1976. The company has also acquired all the properties, rights and interests and assets of Indo-
Burma Petroleum Company Limited (a subsidiary of Bangladesh Petroleum Corporation) from 1st
January, 1986 based on an audited accounts of IBPCL as on 31st December, 1985. Vendors
agreement to this effect is yet to be executed. The Company has been functioning as a subsidiary
of Bangladesh Petroleum Corporation since its establishment.
b. Activities of the Company

The main business of the company is marketing of refined petroleum oil, lubricants, L.P. gas and
bitumen. The business of the company also includes bottling and marketing of pesticides.
c. Significant accounting policies
i) Convention of accounts
The accounts of the company have been prepared in accordance with the historical cost
convention under generally accepted accounting principles.
ii) Fixed Assets

Fixed assets those acquired from Bangladesh National Oils Ltd. and Indo-Burma Petroleum
Company Ltd. have been stated at transferred price less accumulated depreciation. The other fixed
assets are stated at historical cost less accumulated depreciation. Capital work-in-progress
represents the cost of acquisition of land, land development and construction etc. but not put into
use.
iii) Depreciation/Amortisation
Lease hold lands are amortized according to the amortization schedule.
Fixed assets other than free hold land are depreciated on straight line method at rates given below:
Category of Assets % Annual Rate

Buildings 5 - 10
Tanks and Pipelines 5 - 15
Machinery 7.5
Up-Country Depot 7.5
Service and filling Station 10
Pumps, Filling & Fire Fighting Equipment 5 - 15
Laboratory & Engineering Equipment 7.5 - 15
Vehicles & Other Rolling Stock 20
Railway and Jetty Sides 5 - 7.5
Furniture and Fittings 5 - 20
Returnable Packages 20
Oil Tanker M. T. JAMUNA 10
Fifty percent of full years depreciation is charged in the year of acquisition.

No depreciation is charged in the year of disposal.
48
The cost and accumulated depreciation of depreciable assets retired or otherwise disposed of are
eliminated from the assets and accumulated depreciation, and any gain or loss on disposal is
reflected in the income statement which is determined with reference to the carrying value (net
book value) of the assets and the net sale proceeds.
iv) Mode of Stock valuation
Petroleum Products
These are valued at "ERL" Transfer Price.
Other Products and Stores and Spares

These are valued at cost on weighted average method.
v) Trade debtors
These are carried at original invoice amount. This is considered good and collectible, and
therefore, no amount was written off as bad debt and no debt was considered doubtful to provide
for.
vi) Cash and Cash Equivalents

Cash in hand and cash at banks have been considered as the cash and cash equivalents for
preparation of these financial statements as there was insignificant risk of changes in value of these
current assets.
vii) Creditors and Accrued Expenses

Liabilities are recognised for amounts to be paid in the future for goods and services received,
whether or not billed by the supplier.
viii) Employee Benefit Obligations

The company operates a contributory provident fund and an unfunded gratuity scheme for its
permanent employees. Provident fund is administered by a Board of Trustees and is funded by
contributions partly from employees and partly from the company at pre-determined rates. These
contributions are invested separately from the company’s assets. There is also an unfunded gratuity
scheme and the employees are entitled to gratuity benefit after completion of minimum service
years in the company. The accounting of gratuity was previously made on cash basis. Recently the
company has changed the policy and provided Tk. 6 crore against required provision of Tk. 16.27
crore on 31.12.2006. Gratuity is calculated on the last basic pay and is payable at the rate of two
months basic pay for every completed year of service. The basic pay of employees other than
officers are determined according to the agreement between company and CBA. There is also a
group insurance for the employees.
ix) Income Tax

Jamuna Oil Company Ltd. is a Private Limited Company, therefore the effective rate is 40% as per
income tax law.
x) Workers' (Profit) Participation & Welfare Funds (W.P.P & W.F)

As per the Act, provision @ 5% on net profit for W.P.P & W.F has been made for the period July
to December 2006.
49
xi) Revenue Recognition
Margin on products supplied by BPC and other Gas Companies’ are recognised after delivery of
goods. Jamuna Oil Company Limited is engaged in marketing oil products. The income it earns is
termed as ‘Margin’ which is fixed and determined by the Govt. Jamuna has no control over in
fixing the price of the products. The company records ‘Purchase’ for receiving supply and ‘Sales’
for delivery of the same. Considering the nature of business and its earning, the management has
changed the presentation of accounts. According to the changed policy, sales net of cost of goods
sold (net earning from petroleum product) has been directly presented in accounts instead of
presenting purchase and sales separately.
d. General :
i) Components of the Financial Statements

Financial Statements includes the following components :
Balance Sheet as at December 31, 2006;
Profit and Loss Account for the period from July 01, 2006 to December 31, 2006;
Cash Flow Statement for the period from July 01, 2006 to December 31, 2006; and
Notes to the financial statements.
ii) Reporting Period
Financial Statements of the company usually cover from 1st July to 30th June consistently. But the
enclosed accounts have been covered for six months from July 01, 2006 to December 31, 2006.
iii) Reporting Currency and Level of Precision
The figures in the financial Statements represent Bangladesh Currency (Taka) which have been
rounded off to the nearest Taka.
iv) Comparative information
The enclosed accounts have been prepared fot six months ended 31.12.2006. Comparetive
information in respect of previous period have not been reported in the financial statements except
balance sheet, according to the requirement of law and accounting standard..
2.00 SHARE CAPITAL : Tk. 50,000,000
July 01, 2006 to July 01, 2005 to
December 31, 2006 June 30, 2006
Taka Taka
AUTHORISED : 100,000,000 100,000,000
1,00,00,000 ordinary shares of TK. 10 each
ISSUED, SUBSCRIBED AND PAID-UP :
50,00,000 Ordinary shares of Tk.10 each
fully paid for consideration otherwise than in cash. 50,000,000 50,000,000
3.00 CAPITAL RESERVE : Tk.152,833,103

July 01, 2006 to July 01, 2005 to
December 31, 2006 June 30, 2006
Taka Taka
This represents :
1. Capital gain on sale of land & structure at Chandpur 3,591,102 3,591,102
2. Capital gain on sale of 12.35 acres Land at Patenga
to Joint Venture Co. as detailed below :
Sale of Land 175,000,000 175,000,000
Less : Original Cost of Land (14,428) (14,428)
Related expenses against transfer of land (25,743,571) (25,743,571)
149,242,001 149,242,001
152,833,103 152,833,103
50
4.00 GENERAL RESERVE : TK. 465,000,000 (2005 - 2006 : TK. 465,000,000)
Year wise break-up is as follows:
Year Taka
1973 5,000,000
1974 5,000,000
1975(1/2 Year) 2,500,000
1975-76 5,000,000
1976-77 7,500,000
1977-78 6,000,000
1978-79 20,000,000
51,000,000
Less : 1979-1980 22,500,000
a) Paid to BPC 2,500,000
b) Transfer to share capital 20,000,000
28,500,000
1981-1982 5,000,000
1982-1983 10,000,000
1985-1986 6,000,000
1986-1987 4,900,000
1987-1988 6,341,000
1990-1991 9,259,000
1991-1992 5,000,000
1992-1993 5,000,000
1994-1995 10,000,000
1995-1996 40,000,000
1996-1997 50,000,000
1997-1998 60,000,000
1998-1999 30,000,000
1999-2000 30,000,000
2000-2001 45,000,000
2001-2002 65,000,000
2002-2003 15,000,000
2005-2006 40,000,000
465,000,000
5.00 TANGIBLE FIXED ASSETS : TK. 147,130,587

The movement of fixed assets is as follows :
COST DEPRECIATION Written
Balance as Addition Sales/ Balance Balance as Provided For Sales/ Balance down
at 01.07.06 during Adj. as at at 01.07.06 during current Adj. as at value as at
Particulars the period during 31.12.06 the period period during 31.12.06 31.12.06
the Purchase the
period period
Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka
Freehold land 9,827,747 - - 9,827,747 - - - - - 9,827,747
Leasehold land 10,191,301 - - 10,191,301 2,614,434 52,445 - - 2,666,879 7,524,422
Building 53,076,705 - 53,076,705 41,563,221 883,215 - - 42,446,436 10,630,269
Tank & Pipe lines 58,096,778 86,307 - 58,183,085 41,872,072 1,343,319 1,811 - 43,217,202 14,965,883
Plant & Machinery 3,394,471 - - 3,394,471 2,714,508 68,219 - - 2,782,727 611,744
Up-country Depots 233,090,106 7,780,445 - 240,870,551 140,753,288 6,107,342 145,883 - 147,006,513 93,864,038
Service and Filling Stations 19,576,879 - - 19,576,879 19,548,807 6,686 - - 19,555,493 21,386
Pump Filling & Fire Fighting Equipment 20,240,549 - - 20,240,549 15,178,428 395,573 - - 15,574,001 4,666,548
Laboratory office & Engineering Equipment 19,855,656 9,662 - 19,865,318 16,454,936 412,825 362 - 16,868,123 2,997,195
Vehicles and other Rolling Stocks 33,459,520 - 2,875,500 30,584,020 33,376,665 - - 2,792,691 30,583,974 46
Railway Siding and Jetty 4,485,604 - - 4,485,604 4,485,593 - - - 4,485,593 11
Furniture and Fixture 10,210,780 44,768 - 10,255,548 8,054,440 178,137 1,679 - 8,234,256 2,021,292
Returnable Packages 171,075 - - 171,075 171,072 - - - 171,072 3
Oil Tanker MT Jamuna & Others 16,259,663 - - 16,259,663 16,259,660 - - - 16,259,660 3
July 01, 2006 to December 31, 2006 491,936,834 7,921,182 2,875,500 496,982,516 343,047,124 9,447,761 149,735 2,792,691 349,851,929 147,130,587
July 01, 2005 to June 30, 2006 479,988,839 12,062,174 114,179 491,936,834 323,378,126 19,278,012 481,398 90,412 343,047,124 148,889,710
51
6.00 CAPITAL WORK-IN-PROGRESS - TK. 62,464,893
Particulars Balance as on Addition Total Capitalised Balance as on

01.07.2006 31.12.06
TK. TK. TK. TK. TK.
KAWRAN BAZAR PROJECT :
Approach Road, Building design & drawing 33,739,054 7,629,214 41,368,268 - 41,368,268
RANGPUR DEPOT :
Construction of Pump House 477,543 688,673 1,166,216 1,166,216 -
Construction of 250 M.T. (MS) Tank 543,251 1,869,052 2,412,303 - 2,412,303
DAULATPUR DEPOT:
Construction of Hard Standing in tank Lorry - 989,437 989,437 989,437 -
Grantee Area
SREEMANGAL DEPOT :
Construction of 750 M.T. Cap. SKO Tank 546,211 - 546,211 - 546,211
Construction of 750 M.T. Cap. HSD Tank 546,212 - 546,212 - 546,212
Construction of 750 M.T. Capacity two Tank - 5,562,321 5,562,321 - 5,562,321
Construction of Tin Shed 49,360 - 49,360 - 49,360
Construction of Pump & Pipe line - 257,460 257,460 - 257,460
Construction of Office Building 583,970 579,625 1,163,595 1,163,595 -
Construction of Road and Parking - 638,403 638,403 - 638,403
Construction of Electric Line - 176,024 176,024 - 176,024
Construction of Drain - 569,516 569,516 - 569,516
CHITTAGONG TERMINAL :
Construction of Cyclone Fencing 530,183 - 530,183 - 530,183
PARBATIPUR DEPOT :
Constructions of Oil Tanks 9,689,982 118,650 9,808,632 - 9,808,632
Grand Total Tk. 46,705,766 19,078,375 65,784,141 3,319,248 62,464,893
July 01, 2005 to June 30, 2006 24,040,322 29,552,200 53,592,522 6,886,756 46,705,766
7.00 INVESTMENT (At Cost) : TK. 175,400,000 (2005 - 2006 : Tk. 175,400,000)
Joint Venture Financing - July 01, 2006 July 01, 2005
to to
December 31, 2006 June 30, 2006
a. 877 Shares of Tk. 100,000 each in Mobil Jamuna Lubricants Ltd. 87,700,000 87,700,000
b. 877 Shares of TK. 100,000 each in Mobil Jamuna Fuels Ltd. 87,700,000 87,700,000
Tk. 175,400,000 175,400,000
8.00 STOCK-IN-TRADE : TK. 3,657,519,195
This consists of : July 01, 2006 to December 31, 2006 July 01, 2005 to June 30, 2006
Stocks (including stock in transit) 108,261,533.00 3,425,520,574 70,107,611.00 2,298,735,763
L.P. Gas (Cylinder) 3,248.00 1,416,128 2,946.00 1,284,456
Imported Lubricants 1,389,672.25 155,125,185 1,091,481.75 97,430,133
Lubricants 229,081.57 17,113,714 113,331.57 4,513,435
Imported Grease 40,288.80 9,111,301 41,095.50 8,122,466
Bitumen (M.T) 613.70 17,496,773 164.80 4,327,184
3,625,783,675 2,414,413,437
Lubricants raw materials 31,604,166 16,210,520
Pesticides 131,354 265,124
3,657,519,195 2,430,889,081
8.01 Stocks (including stock in transit) : Tk. 3,425,520,574
This consists of : July 01, 2006 to December 31, 2006 July 01, 2005 to June 30, 2006
HOBC 1566203 87,112,211 3849954 214,134,442
MS 6753277 362,448,377 4989005 267,759,898
SKO 18930939 601,625,241 19940696 633,715,319
HSD 63844821 2,007,919,620 28801787 905,816,201
LDO 456366 15,758,318 730946 25,239,565
FO 15096087 295,128,501 10351898 202,379,606
JBO 1605785 55,447,756 1437234 49,627,690
Condensate 8055 80,550 6091 63,042
108,261,533 3,425,520,574 70,107,611 2,298,735,763
52
9.00 STORES & SPARES : TK. 75,144,244
This consists of : July 01, 2006 to July 01, 2005 to

December 31, 2006 June 30, 2006
Non Returnable Empty packages 1,525,747 1,402,193
L.P.G. Store Materials 35,048,094 35,051,694
Chittagong Terminal Stores 33,824,268 34,380,040
Depot Stores 3,957,633 3,646,870
Pesticides Materials 788,502 788,502
Tk. 75,144,244 Tk. 75,269,299
10.00 BOOK DEBTS : TK. 366,715,610

July 01, 2006 to July 01, 2005 to
This consists of : December 31, 2006 June 30, 2006
LPG distributors A/C 35,846,132 25,996,808
Pesticide distributors A/C - -
Sundry Debtors (POL products) 332,120,019 325,382,655
Sundry Debtors (Bitumen) 4,376,681 -
Provision for Doubtful debts (5,627,222) (5,627,222)
TK. 366,715,610 TK. 345,752,241
This is unsecured but considered good.
11.00 ADVANCES AND DEPOSITS : TK. 5,258,877,157

July 01, 2006 to July 01, 2005 to
This consists of : December 31, 2006 June 30, 2006
Advances 2,522,087,355 2,566,123,151
Deposits 2,736,789,802 236,737,284
Tk. 5,258,877,157 Tk. 2,802,860,435
12.00 CASH & CASH EQUIVALENTS : TK. 2,458,238,850

This consists of :
With Banks in :
Short Term deposits A/C 2,639,763,064 1,133,809,626
Current Account & Disbursement A/C (Note-12.01) (183,374,021) (715,020,541)
2,456,389,043 418,789,085
1,849,807 759,163
In hand Tk. 2,458,238,850 Tk. 419,548,248
12.01 Current account & Disbursement account : Tk. (183,374,021)
This consists of as follows:
a) Cash Credit A/C (Secured) 30 (380,002,781)

b) Current A/C (183,374,051) (335,017,760)
Tk. (183,374,021) Tk. (715,020,541)
13.00 INCOME TAX : TK. 78,171,478
Year-wise details are as follows :
Tax paid Tax Provided Balance

Accounting year Taka Taka Taka
30.06.1988 to 30.06.2003 34,631,255 3,403,844 (31,227,411)
30.06.2004 29,238,248 - (29,238,248)
30.06.2005 23,900,573 1,721,000 (22,179,573)
30.06.2006 31,701,641 120,000,000 88,298,359
31.12.2006 17,481,649 90,000,000 72,518,351
TK.136,953,366 215,124,844 78,171,478
53
14.00 SUNDRY CREDITORS : TK. 11,267,511,508
July 01, 2006 to July 01, 2005 to
This comprises of :
December 31, 2006 June 30, 2006
Liabilities for Goods Supplied 5,660,325,048 2,990,302,618
Liabilities for Expenses 785,782,412 715,764,204
Liabilities for Other Finance 4,821,404,048 2,012,076,902
Tk. 11,267,511,508 Tk. 5,718,143,724
15.00 NET EARNING ON PETROLEUM PRODUCT : TK. 341,796,200
Product-wise details are as follows :

Products
i) Main Product:
HOBC 2,474,765 6,094,586
MS 87,473,586 96,966,081
SKO 28,284,313 48,368,825
HSD 132,946,146 228,694,780
LDO 207,513 66,823
FO 16,667,372 39,254,523
JBO 784,663 847,190
268,838,358 420,292,808
ii) Bitumen 5,195,146 10,648,187
iii) Lubricants & Grease 65,139,240 51,984,458
iv) LPG 2,623,456 6,462,646
72,957,842 69,095,291
Total Tk. 341,796,200 Total Tk. 489,388,099
16.00 ADMINISTRATIVE, SELLING & DISTRIBUTION EXPENSES : TK. 131,335,090
This consists of as follows :
Storage, Selling & Administration 12,295,273 29,302,281

Payroll & Benefits 99,656,622 198,080,503
Contributory Provident Fund 2,262,300 3,853,209
Rent & Other Taxes 2,793,576 17,835,038
Travelling & Office Transport 3,259,058 8,243,875
Fuel & Electricity 2,371,421 4,616,521
Repairs & Maintenance 3,971,075 7,277,896
Insurance 3,821,908 5,171,868
Audit Fee (statutory) 40,000 80,000
Directors Fee 63,000 58,500
Management Service Charge 175,000 350,000
Pesticide Expenses 625,857 2,382,297
TK. 131,335,090 TK. 277,251,988
During the half year 31st December, 2006, 570 employees have received Tk. 3,000 or more per month as
salary and other benefits.
17.00 FINANCIAL EXPENSES : TK. 31,646,332 (2005 - 2006 : TK. 67,417,174)
This is payable to BPC.
54
18.00 OTHER INCOME : TK. 66,877,055
July 01, 2006 to July 01, 2005 to
This comprises of : December 31, 2006 June 30, 2006
Interest on Bank deposits 35,222,435 61,113,223
Interest on house building loan 539,241 1,073,455
Interest on Car loan 35,772 84,042
Handling Commission (989,952) 17,276,535
Income from product handling & Banker Sales 11,873,331 34,475,279
Profit on sale of LPG materials 900 900
Net profit/(Loss) on carrying Products by MT JAMUNA 736,762 4,793,541
Net Profit on Tanker Operation 15,680,786 15,020,277
Profit/(Loss) on sale of fixed Assets ( 18.01) 1,038,631 47,233
Sundries 15,000 878,561
Deposit forfeited - 12,000
Rent 1,314,085 12,000
License fee 1,410,064 2,076,673
TK. 66,877,055 TK. 136,863,721
18.01 PROFIT/(LOSS) ON SALE OF FIXED ASSETS : Tk. 1,038,631

Original Accumulated Book Sales
Particulars Profit/(Loss)
Cost Depreciation Value Proceed
CTG - KHA - 6142 386,000 385,999 1 155,900 155,899
CTG - KHA - 6143 386,000 385,999 1 121,999 121,998
Chatta Metro H - 02-0384 88,500 88,499 1 105,000 104,999
Chatta Metro H - 02-1239 63,500 63,499 1 76,150 76,149
Chatta Metro H - 11-4096 92,000 64,400 27,600 65,110 37,510
Chatta Metro H - 11 - 4097 92,000 64,400 27,600 80,203 52,603
Chatta Metro H - 11 - 4098 92,000 64,400 27,600 67,990 40,390
Chatta Metro H - 02 - 1238 63,500 63,499 1 80,580 80,579
Chatta Metro H – 02 - 1655 73,500 73,499 1 62,800 62,799
Chatta Metro H - 02 - 1656 73,500 73,499 1 75,000 74,999
Chatta Metro H - 03 - 4872 985,000 984,999 1 165,110 165,109
Chatta Metro 1590 480,000 479,999 1 65,598 65,597
2,875,500 2,792,691 82,809 1,121,440 1,038,631
19.00 CONTINGENT LIABILITIES :

There is a contingent liability in respect of income tax for an aggregate sum of Tk. 37,036,577
20.00 SUBSEQUENT EVENTS :
a. Jamuna Oil Company Limited, incorporated as private limited company on March 12, 1975, has
been converted into a public limited company vide special resolution dated 03.06.2007.
b. Jamuna Oli Company Limited has allotted 5,000,000 shares of Tk. 10 each to its share holders on
June 29, 2007 against bonus shares issued on 13.06.2007
Details of product wise operational & transit gain/(loss)
Annexure-A
Lub &
Particulars HOBC MS SKO HSD LDO FO JBO LPG Condensate Total
Grease
Working Loss (1) (2,392,383) (4,853,002) 7,352,017 12,302,346 160,047 11,311,591 259,113 (123,774) - (2,970) 24,012,985
Transit Loss (1,991,530) (3,614,406) (8,777,572) (35,884,859) - (41,622) (373,891) - - - (50,683,880)
Freight Loss (2) (23,885) (46,018) 8,847 (96,744) - 14,352 (986) - - - (144,434)
Total: Tk. (26,815,329)
1. Operational Gain : Taka 23,868,551

a) Working Gain : TK 23,868,551 (Main Product Tk.23,992,325 and Lub, Grease & LPG Tk.(123,774))
b) Freight Loss : Tk. 144,434
2. Transit Loss : Tk. 50,683,880
55
Auditor’s Certificate
regarding calculation of EPS and other ratio’s as per Direct Listing Rules-2006
We have examined the following Earning Per Share (EPS) and analysed the other ratio’s of Jamuna
Oil Company Limited (JOCL) for the years ended on June 30, 2002, 2003, 2004, 2005, 2006 and six
months ended on December 31, 2006, which have been produced by the management of Jamuna Oil
Company Limited (JOCL) to us. The preparation of the EPS and other ratios analysis is the
responsibility of the Company’s management. These are prepared based on the audited financial
statements of the Company. Our responsibility is to review them and certify as to whether they
have been properly prepared using acceptable principles on the basis of financial statements for the
years ended on June 30 2002, 2003, 2004, 2005, 2006 and sixth months ended on December 31, 2006.
Based on our review, we certify that the company has properly prepared the EPS and Ratio analysis
using acceptable principles on the basis of financial statements for the years ended on June 30, 2002,
2003, 2004, 2005, 2006 and six months ended on December 31, 2006.
A) Liquidity Ratio:
SL. Items December’ June, June, June, June, June,
No. 2006 2006 2005 2004 2003 2002
1 Current Ratio 1.04 1.06 1.05 1.06 1.07 1.07
2 Quick Ratio 0.71 0.62 0.32 0.59 0.57 0.61
B) Operating Ratio:
3 Accounts Receivable Turnover 1.05 1.10 0.67 0.97 0.99 0.95
Ratio
4 Inventory Turnover Ratio 6.55 12.82 10.48 11.20 10.34 10.27
5 Asset Turnover Ratio 2.17 6.40 5.49 4.67 4.27 3.01
C) Profitability Ratio:
6 Gross Margin Ratio 1.69 1.31 1.12 0.84 1.33 1.57
7 Operating Income Ratio 1.16 0.70 0.23 (0.16) 0.40 0.74
8 Net Income Ratio (Before Tax) 1.11 0.67 0.02 (0.16) 0.38 0.70
9 Return on Assets Ratio 2.41 4.27 0.09 (0.76) 1.61 2.11
10 Return on Equity Ratio 26.21 34.47 0.77 (6.72) 12.41 22.76
11 Earning Per Share Ratio 26.86 25.75 0.57 (8.68) 9.82 18.26
D) Solvency Ratio :
12 Time Interest Earned Ratio 8.46 4.88 1.07 0.40 2.43 3.40
(Based on profit before interest,
WPPF & Tax)
13 Debt Equity Ratio 13.26 7.93 7.79 7.58 7.13 6.83
14 Bad Debt Ratio (Bad & Doubtful 0.015 0.016 0.019 0.009 0.009 0.009
Debts / Total Receivables)
Sd/ Sd/
67 (2nd Floor), Dilkusha C/A, Dhaka-1000 National Plaza (6th Floor), 1/G Free School Street
Sonargaon Road, Dhaka-1205
Dated: September 26, 2007

Place : Dhaka
56
AUDITORS’ REPORT UNDER SECTION 135(1) AND PARAGRAPH 24(1) OF PART – II OF
SCHEDULE – III OF THE COMPANIES ACT, 1994
We, as the auditors having examined the Financial Statements of Jamuna Oil Company Limited (JOCL) for the
years ended 30 June 2002, 2003, 2004, 2005, 2006 and for the period from July 1, 2006 to December 31,
2006 and in pursuance of section 135 (1) and paragraph 24(1) of Part-II of the Third Schedule of the
Company Act, 1994 report that :
A. The Statement of Assets and Liabilities of the Company is as under:
December 31, June 30, 2006 June 30, 2005 June 30, 2004 June 30, 2003 June 30,
2002
2006
Taka Taka Taka Taka Taka Taka
SOURCES OF FUND :
SHAREHOLDERS’ EQUITY :
Share Capital 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Proposed Issue of Bonus Share 50,000,000 50,000,000 - - - -
Capital Reserve 152,833,103 152,833,103 152,833,103 152,833,103 152,833,103 152,833,103
General Reserve 465,000,000 465,000,000 425,000,000 425,000,000 425,000,000 410,000,000
Proposed Dividend - - - - 37,500,000 -
Surplus/(Deficit) 137,974,447 3,684,826 (35,047,259) (37,913,144) 1,009,785 4,397,666
855,807,550 721,517,929 592,785,844 589,919,959 666,342,888 617,230,769
APPLICATION OF FUND
TANGIBLE FIXED ASSETS :
(At cost less depreciation) 147,130,587 148,889,710 156,610,713 149,919,624 149,001,177 155,520,218
Capital Work-in-Progress 62,464,893 46,705,766 24,040,322 18,496,568 6,922,041 11,298,161
209,595,480 195,595,476 180,651,035 168,416,192 155,923,218 166,818,379
INVESTMENT IN SHARES 175,400,000 175,400,000 175,000,000 175,000,000 175,000,000 175,000,000
CURRENT ASSETS : 11,816,495,056 6,074,319,304 4,855,080,332 4,719,773,500 5,086,011,467 4,488,305,359
Stock–in-Trade 3,657,519,195 2,430,889,081 3,311,237,473 2,003,919,611 2,325,194,738 1,845,657,295
Store & Spares 75,144,244 75,269,299 65,618,590 72,204,177 74,259,818 79,412,253
Book Debts 366,715,610 345,752,241 291,126,421 590,374,895 633,426,245 654,352,171
Advances & Deposits 5,258,877,157 2,802,860,435 853,361,088 1,773,601,111 1,796,351,001 1,623,437,905
Income Tax - - 82,645,232 56,715,660 24,237,767 25,759,113
Cash & Cash Equivalents 2,458,238,850 419,548,248 251,091,528 222,958,046 232,541,898 259,686,622
CURRENT LIABILITIES: (11,345,682,986) (5,723,796,851) (4,617,945,523) (4,473,269,733) (4,750,591,797) (4,212,892,969)
Income Tax 78,171,478 5,653,127 - - - -

Sundry Creditors 11,267,511,508 5,718,143,724 4,617,945,523 4,410,769,733 4,725,591,797 4,162,892,969
Dividend Payable - - - 62,500,000 25,000,000 25,000,000
Proposed Dividend - - - - - 25,000,000
NET CURRENT ASSETS 470,812,070 350,522,453 237,134,809 246,503,767 335,419,670 275,412,390

NET ASSETS 855,807,550 721,517,929 592,785,844 589,919,959 666,342,888 617,230,769
57
B. The Statement of Operating results of the Company is as under:
December 31, June 30, 2006 June 30, 2005 June 30, 2004 June 30, 2003 June 30, 2002
2006
Net Earning on Petroleum Products 341,796,200 489,388,099 315,039,891 204,853,827 290,879,099 315,166,179
LESS :
Administrative, Selling & 131,335,090 277,251,988 216,909,003 198,698,943 204,090,209 187,303,973
Distribution Expenses
Financial Expenses 31,646,332 67,417,174 67,729,759 65,948,081 61,001,677 61,639,286
Depreciation and Amortization 9,597,495 19,759,410 19,029,700 18,452,601 18,531,807 17,740,878
172,578,917 364,428,572 303,668,462 283,099,625 283,623,693 266,684,137
Operating Profit/(Loss) 169,217,283 124,959,527 11,371,429 (78,245,798) 7,255,406 48,482,042

Add : Other Income 66,877,055 136,863,721 52,708,150 38,583,225 79,809,982 99,378,485
Add : Recovery of doubtful debts - - - - - 10,000
236,094,338 261,823,248 64,079,579 (39,662,573) 87,065,388 147,870,527
Less : Interest paid back to BPC - - 59,251,279 - - -
as per their demand
236,094,338 261,823,248 4,828,300 (39,662,573) 87,065,388 147,870,527
Less : Provision for Contribution to Workers 11,804,717 13,091,162 241,415 - 4,353,269 7,393,526
(Profit) Participation & Welfare Funds
Net Profit/(Loss) before Income Tax 224,289,621 248,732,085 4,586,885 (39,662,573) 82,712,119 140,477,001
Provision for Income Tax (90,000,000) (120,000,000) (1,721,000) - (31,100,000) (49,200,000)

Provision for Dividend Distribution Tax - - - (3,750,000) (2,500,000) -
Profit/(loss) after Income Tax 134,289,621 128,732,085 2,865,885 (43,412,573) 49,112,119 91,277,001
Add : Un-appropriated profit/(loss) 3,684,826 (35,047,259) (37,913,144) 1,009,785 4,397,666 3,120,665

brought forward
Add : Excess Provision of Income Tax - - - 4,489,644 - -
Written Back
Un-appropriated profit/(loss) 137,974,447 93,684,826 (35,047,259) (37,913,144) 53,509,785 94,397,666
Proposed Dividend/Issue of Bonus Share - 50,000,000 - - 37,500,000 25,000,000
Transferred to General Reserve - 40,000,000 - - 15,000,000 65,000,000
Transferred to Retained Earnings 137,974,447 3,684,826 (35,047,259) (37,913,144) 1,009,785 4,397,666
137,974,447 93,684,826 (35,047,259) (37,913,144) 53,509,785 94,397,666
C. The Company declared dividend as follows :

Cash dividend - - - - 75% 50%
Stock dividend - 100% - - - -
D.
E. No proceeds or part of proceeds of the issue of shares were applied directly by the company in the
purchase of any business.
F. The Company did not prepare any accounts for any period subsequent to December 31, 2006.
G. Figures relating to previous years have been re-arranged wherever considered necessary.
Sd/ Sd/
Howladar Yunus & Co. M. J. Abedin & Co.
Dated : September 26, 2007

Place : Dhaka

58
Certificate of Changes in Equity
Proposed
Proposed Capital General Surplus/
Particulars Share Capital Issue of Bonus Total
Dividend Reserve Reserve (Deficit)
Share
As on July 1, 2001 50,000,000 - 25,000,000 152,833,103 345,000,000 3,120,665 575,953,768
Net Profit after Tax - - - - - 91,277,001 91,277,001
Dividend Proposed for 2002 - - 25,000,000 - - (25,000,000) -
Dividend Paid for 2001 - - (25,000,000) - - - (25,000,000)
Transferred to General Reserve - - - - 65,000,000 (65,000,000) -
As on June 30, 2002 50,000,000 - 25,000,000 152,833,103 410,000,000 4,397,666 642,230,769

Dividend Proposed for 2003 - - 37,500,000 - - (37,500,000) -
Transferred to General Reserve - - - - 15,000,000 (15,000,000) -
As on June 30, 2003 50,000,000 - 37,500,000 152,833,103 425,000,000 1,009,785 666,342,888
Net Profit/(Loss) after Tax - - - - - (43,412,573) (43,412,573)

Written Back Excess Provision - - - - - 4,489,644 4,489,644
Of Income Tax
As on June 30, 2004 50,000,000 - - 152,833,103 425,000,000 (37,913,144) 589,919,959

As on June 30, 2005 50,000,000 - - 152,883,103 425,000,000 (35,047,259) 592,785,844

Proposed issue of Bonus Share
- 50,000,000 - - - (50,000,000) -
for 2006
Transferred of General Reserve - - - - 40,000,000 (40,000,000) -
As on June 30, 2006 50,000,000 50,000,000 - 152,833,103 465,000,000 3,684,826 721,517,929

As on December 31, 2006 50,000,000 50,000,000 - 152,883,103 465,000,000 137,974,447 855,807,550
CERTIFICATE OF NET FIXED ASSETS PER SHARE
59
December 31, June 30, 2006 June 30, 2005 June 30, 2004 June 30, 2003 June 30, 2002
2006
Tangible Fixed Assets
Fixed Assets
At Cost less depreciation 147,130,587 148,889,710 156,610,713 149,919,624 149,001,177 155,520,218
Capital Work-in-Progress 62,464,893 46,705,766 24,040,322 18,496,568 6,922,041 11,298,161
209,595,480 195,595,476 180,651,035 168,416,192 155,923,218 166,818,379
Number of Share 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Net Fixed Assets per Share 42 39 36 34 31 33
Sd/ Sd/
Howladar Yunus & Co. M. J. Abedin & Co.
Dated : September 26, 2007

Place : Dhaka
Q. Credit Rating Report

on
REPORT: RR/137/07
60
Long Term Short Term
Address :
Entity Rating A ST– 3
Nakshi Homes (4th floor)
6/1A, Topkhana Road Outlook Positive
Segunbagicha, Dhaka Date of Rating September 24, 2007
CRISL’s long-term rating is valid for only one year and short term rating is for six months. After expiry of the
Analysts : above periods these ratings will not carry any validity unless the client goes for rating surveillance.
Sk. Md. Lutful Kabir
Zobayer Zahid
1.0 RATIONALE
P aid up Capital & SH Equity

Entity Rating : CRISL assigns “A” rating (Pronounced as Figure in Million
800.00
Long term: A Single A) to Jamuna Oil Company Ltd. in the
Short term: ST - 3 Long term and ST- 3 rating in the short term. 700.00
Outlook : Positive The above has been done on the basis of its 600.00
good fundamentals such as fully government 500.00
owned marketing and distribution company 400.00
JAMUNA OIL with wide distribution network, good financial 300.00
COMPANY LIMITED performance, sound asset base with high
200.00
current market value. Having sound hard
100.00
infrastructure, the company does not have any
long term financial obligation. However, the -
PRINCIPAL ACTIVITY: 2006 2005 2004 2003
above rating is constrained, to some extent, Year
Oil Marketing &
by traditional management structure with Paid up Capital S.H. Equity
Distribution
Government interference, excess of allowable
limit transit loss, high dependency on BPC and
INCORPORATED IN: Net Asset value vs. Earning per
Government for business decisions, moderate
12th March 1975 Share
cost efficiency etc. Jamuna Oil Company Ltd. is
also handicapped for long dues from
200
government organizations. It has lost its sole
Chairman:
distributorship of lubricants from Mobil which 150
Mr. Md. Wahidunnabi
has also been negatively reviewed by CRISL. 100
Choudhury
Entities rated in this category are adjudged to
offer adequate safety for timely repayment of 50
Managing Director:
financial obligations and fall under the CRISL 0
Mr. Md. Masudur Rahaman
category of investment grade. This level of
-50
rating indicates a corporate entity with an
Paid up Capital:
adequate credit profile. Risk factors are more 2006 2005 2004 2003
Tk. 450 Million
variable and greater in periods of economic
stress than those rated in the higher NAV EPS
categories.
Shareholder’s Equity:
Tk. 721.52 Million ROAA vs. ROAE
CRISL has also placed the company in its
Positive outlook in view of its recent trend in 50
Capital Employed:
financial performance, expected good return 40
Tk. 721.52 Million
from investment and its corporate plan to go 30
direct listing with the bourses for public 20
offering of shares that may enhance the 10
corporate image, accountability and 0
transparency in operational management. -10
-20 2006 2005 2004 2003
Year
ROAA ROACE
61
2.0 COMPANY PROFILE
2.1 The Genesis

Jamuna Oil Company Ltd. (hereinafter called JOCL) is a petroleum marketing company
Long history of serving the nation for last four decades. It was established in 1964 with the name and style
successful operation Pakistan National Oils Limited, and after independence the company was renamed as
Bangladesh National Oils Limited. Jamuna Oil Company Ltd. was formed as a Private Ltd.
Company on 12th March 1975 under the Companies Act, 1913 (now 1994) to take over all
the properties, rights, interests and assets of Bangladesh National Oils Ltd. (ex-Pakistan
National Oils Ltd.). The ownership of the company was vested with Bangladesh Petroleum
Corporation through an agreement entered into between the company and the corporation,
based on the audited accounts of the company as on 31st Dec 1976. JOCL also acquired all
the properties, rights, interests and assets of Indo- Burma Petroleum Company Ltd. (the then
subsidiary of Bangladesh Petroleum Corporation) based on audited accounts of IBPCL as on
31st Dec, 1985. JOCL has since been operating as 100% owned subsidiary of BPC. As a
marketing & distribution subsidiary of BPC, JOCL markets and distributes all petroleum
products of BPC as well as branded lubricants product of Mobil. As per decision taken by the
Government and BPC, the company was converted into Public Limited Company on 25th June
2007 with the main purpose of entering into Bangladesh capital market by offering a portion
of its share capital to the general public.
Recent revision in
Authorized and Paid up The company had been operating with an Authorized and Paid up Capital of Tk. 100 Million
capital and Tk. 50 Million respectively. The above Authorized Capital has been subsequently raised to
Tk. 3000 million by special resolution and the paid up capital has also been raised to Tk. 100
million by issuing bonus share. However, the paid up capital has found to be not in line with
its present financial structure and accordingly the Board has decided to increase its paid up
capital again by Tk 350 million by issuing bonus share soon.
Sound hard The Head Office of the Company is at Agrabad Commercial Area in Chittagong. It has its own
infrastructure office building named “Jamuna Bhaban” and also has sound hard infrastructure in different
parts of the country. Main installation is located at Guptakhal, Patenga, Chittagong. Products
from Eastern Refinery, LP Gas plant and imported refined products are stored in the above
main installation for onward dispatch to the upcountry depots and also for local sales.
2.2 Ownership Pattern

Fully Govt. owned As stated above, JOCL is a fully owned subsidiary of BPC under the Ministry of Power, Energy
marketing company and Mineral Resources. BPC holds 49, 99,994 shares of Tk. 10 each and rest 06 shares are
held by two directors and four senior officials of BPC to make compliant with the Company
Act 1994. Besides BPC, other shareholders are Director (Finance), Director (Marketing),
Secretary, Senior GM (Commercial), GM (Finance), GM (Audit) of BPC. However, the
concentration of shareholding will be diluted after offloading of its shares in the capital
market.
2.3 Infrastructures & Facilities

The JOCL has huge infrastructure and facilities as required by a petroleum marketing
Country-wide company in order to ensure proper distribution of petroleum products throughout the country
extensive network with uninterrupted supply. For marketing of petroleum products throughout the country, the
company 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. Besides, there are 732 Dealers for marketing LP Gas throughout the country. The
company has 77 Storage Tanks having total capacity of 1, 26,593 MT as on 30th June 2006
for storage of POL products and smooth distribution. The company also delivers products
directly to industries and Power Plants. The company gets supply of LPG from LP Gas Limited,
Chittagong and Kailashtila Project, Sylhet. JOCL has 10 Riverine Depots and 06 Rail- Head
Depots at various points throughout the country. The riverine depots are located at
Chandpur, Fatullah, Bhairabazar, Jhalakati, Daulatpur, Baghabari, Balashi, Chilmari,
Sasnabazar, Barisal and Rail- Head Depots are located at Srimongal, Sylhet, Rangpur,
Parbatipur, Natore, Rajshahi.
JOCL does not have any plan to establish any new depot in near future. New covered van is
to be introduced to the transportation fleet to supply Lubricants to some special customers
directly. New distribution outlets will be set up in different parts of the country where JOCL’s
market share is negligible in order to penetrate competitors’ area to boost up its market
share. It has been planned to increase the sales force as per requirement to implement the
future marketing plan of the company.
62
2.4 Products
The products of JOCL include Petroleum products, Non-Petroleum Products and Lubricants
Distributes BPC products. The petroleum products include HOBC, MS (Motor Sprit), SKO (Superior Kerosene
Petroleum products Oil), HSD (High Speed Diesel), LDO (Light Diesel Oil), FO (Furnace Oil), JBO (Jute Bleaching
with Mobil lubricants Oil), Lube. Non-petroleum products include Liquefied Petroleum Gas (LPG) and Bitumen.
JOCL is the distributor of Lubricants of Mobil Jamuna Lubricants Limited. Lubricant products
of JOCL include MOBIL DELVAC SPECIAL 20W50, MOBIL DELVAC 1340, MOBIL HD 40, MOBIL
SUPER XHP 20W50 and MOBIL ATF 220.
2.5 Business Strategy

JOCL is a flagship company of the BPC engaged in storage, distribution and marketing of all
petroleum products across the national terrains of Bangladesh. Bangladesh is not an oil
producing country. Government of Bangladesh (GOB) imports crude oil and refined oil as per
the requirement of the country and arranges necessary processing through respective
subsidiary company of BPC. As an oil marketing & distributing company, JOCL is guided by its
business goal to ensure smooth supplies of petroleum products all over the country through
their distribution network with effective management system. In order to achieve the above
goal, JOCL has been working around four decades. For effective distribution throughout the
country the company follows business policy to control the supplies of petroleum products
rather than sales promotion as petroleum products are subsidized by the GOB. Product
diversification is not possible due to govt. policies and BPC’s intervention. JOCL procures
refined oil from Eastern Refinery Ltd., a subsidiary of BPC, at 30°C temperature and
distributes the products at natural temperature its to customers.
For smooth distribution of petroleum products, JOCL has created four types of distribution
outlets such as, Direct Customers, Packed Point Dealers, Resellers Outlets and Retail Outlets
(Filling Stations). Direct customers procure bulk quantity of petroleum products directly form
the Depots of JOCL and there are also some special arrangements with some direct
customers like PDB, Bangladesh Railway, Defense Service, Chittagong Port Authority, BIWTA
and Nationalized Industries. Besides, arrangement has been made for direct delivery to a
number of Govt/Semi Govt organizations.
Distributor of Mobil For lubricants business, JOCL has been marketing the world class MOBIL brand lubricants in
Lubricants Bangladesh since 1997. Initially the company procured directly and marketed & distributed
the MOBIL brand as a sole distributor in the country. However, after establishment of local
lubricants blending plant namely “MOBIL Jamuna Lubricants Ltd. (MJLL)”, Mobil started
business in the country through establishment of their own network and the status of JOCL
was converted to just as a distributor of MJLL.
The sales personnel are given sales target and their incentive bonuses depend on the
achievement of sales target. All promotional costs are borne by MJLL and the incentive
bonuses offered by JOCL to promote Lubricant sales is also sponsored by MJLL. JOCL has also
target to increase sales of Furnace Oil to private power generation companies. As JOCL is not
enjoying the sole distributorship in Lubricant marketing like other state owned oil companies,
it is facing severe competition both from the same brand marketers as well as other
lubricants marketers.
3.0 INDUSTRY PROFILE
Politically sensitive Oil sector is one of the most sensitive sectors in the economy as the macro economic
sector in the economy 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
facing the challenge to cope with the low purchasing power of the people. For this GoB has
been encouraging the use of CNG to reduce the dependency on petroleum products. The
commercial energy mix in Bangladesh is now preponderantly dependent on natural gas by
about 67% and due to increasing use of Compressed Natural Gas (CNG), the demand for
petroleum products is also in decreasing trend.
The petroleum sector is totally under the control of Government. In order to keep this
sensitive sector under control, the GoB established BPC by a Presidential Ordinance in 1976
(# 88, 13/11/1976) with the philosophy of providing petroleum products to all consumers at
equal price irrespective of transportation cost. As per the Bangladesh Petroleum Act, 1974,
production, processing, refining and marketing of petroleum products in the country is vested
exclusively with the Government of Bangladesh. The Petroleum Act also specifies the
63
authorities, functions and responsibilities of BPC including establishment of plants &
Fully Govt. controlled infrastructure, building necessary facilities and their extensions for marketing of petroleum
sector products; monitoring, coordination of the subsidiary companies of BPC and any other
functions and responsibilities as directed by the government. In order to regulate the sector
the major five functions of BPC are being performed by subsidiary companies of BPC.
GoB has opened the lubricants markets and LPG markets for private sector participants. 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
Open market for companies. At present, the three oil marketing companies captured only about 30% of the
lubricants 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
BPC controlled pricing at consumer level in different distances. The commission at each level of suppliers i.e. oil
of petroleum products marketing companies, agents, dealers are also fixed by the Government. However, CRISL
views that oil marketing companies are getting lower margin than the dealers. According to
the Gazette, BPC reimburses the transportation cost to the oil marketing companies.
4.0 MARKET SHARE
Stable market share JOCL has been operating in a companionable competitive environment for petroleum
for petroleum products products marketing. The Gross turnover of JOCL for FY 2005-06 was 1.16 million MT out of
(33.19%) industry turn-over of 3.51 million M. Ton, which represents 33.19% market share. The gross
turn-over of JOCL for FY 2004-05 was 1.10 million MT, which was 31.40% of industry
turnover.
The gross turnover of lubricants products of three BPC oil marketing companies was 17,232
Low market share in M. T where JOCL’s turnover was 4308 M.T for FY 2005-2006, which represents only 25% of
lubricant business market share in lubricant products which was lower than other two oil marketing companies.
The total turnover of lubricants of three oil marketing companies was 15,751 MT and 15082
MT for FY 2004-05 and FY 2003-04 respectively whereas JOCL’s turnover was 3,053 MT and
4,623 MT for FY 2004-05 and FY 2003-04 respectively representing 19.38% and 30.65% for
the same period.
JOCL’s market share in Lubricants is far below compared to other oil marketing companies
though MOBIL brand is the market leader in lubricants of our country. JOCL cannot grab
larger market share as JOCL is not the sole distributor of MOBIL.
5.0 CORPORATE GOVERNANCE
Corporate governance is the blend of rules and regulations that directs a corporate to
function as a corporate citizen. It is basically the delivery mechanism of providing services or
products to the society for which an organization is created. It directs an organization to
perform as per rules and regulations of the corporate society as well as in accordance with
the memorandum and articles of association. The corporate governance practice in JOCL can
BPC nominated board be described as follows
5.1 Board of Directors

JOCL is managed by a team of 7 (Seven) directors including Managing Director nominated by
the BPC. As per Articles of Association, the Directors are appointed by Corporation and are
not required to have any qualification Shares. The corporation nominates all Directors
including the Chairman and Managing Director to the Board of the company. Managing
Director is also appointed by Bangladesh Petroleum Corporation. All day to day affairs are
performed by MD, which is regulated by a Power of Attorney. Mr. Md. Wahidunnabi
Choudhury, Additional Secretary, Energy and Mineral Resources Division, is the Chairman of
the Board. The other Board members are high officials of Government of Bangladesh, and
BPC. The Board is responsible for over all functioning and top policy making of the Company.
The Board conducted 13 and 12 meetings in 2006 and 2005 respectively.
Board reviews and approves import proposal of lubricants, appointment & promotion of
officers, review of monthly business performance, procurement and disposal of assets,
selection of distribution outlets and others. The Board is yet to form any Audit Committee or
64
Executive Committee to supervise the operational activities closely. The Board has delegated
adequate administrative and financial power to the Managing Director except procurement of
lubricants or base oil.
5.2 Corporate Management

JOCL is a large corporate body having nine full fledged Departments and five regional offices
Experienced top including Main Installations. Each Department is headed by a top executive in the rank of
management Deputy General Manager and the regional offices are also headed by an executive in the rank
of AGM/DGM. Without having any corporate management team in JOCL, the decision making
process is being slow like other government organization. The Management Team is headed
by Managing Director Mr. Md. Masudur Rahaman who is a Mechanical Engineer having long
exposures in the relevant field. Prior to joining JOCL, he was also the Chief Executive of
Meghna Petroleum Ltd. and Padma Oil Company Ltd., the other sister concerns of BPC. Mr.
Rahman is aided by one General Manager (Marketing & Operation) and seven Deputy General
Managers. The top level executives of JOCL have long exposures in the company and also in
the respective Departments. The Managing Director has formed different committees for
effective operation of the business.
5.3 Human Resources Management

Low employee The human resources management of JOCL is governed by a structured service rules
turnover covering various policies like employment conditions, performance appraisal, general
behavior & discipline, salary and other perquisites, leave etc. The company formulated its
own Personnel Policy and pay scale; however, the existing pay scale is not at par with
average pay scales of private sector organizations. The company operates a contributory
provident fund and gratuity scheme for its permanent employees and the employees are
entitled for gratuity benefit after completion of minimum service year in the company. The
basic pay of employees other than officers is determined according to the agreement
No human resources between company and CBA and reviewed after every two years. There is also group
planning insurance for the employees. The company has introduced performance appraisal system.
The promotion and increment depend on the Board & BPC which is very slow in decision
making that creates job dissatisfaction among the employees. Most of the senior executives
are going to retire within the next few years, whereas there is comparatively no recruitment
to fill up the above vacancies through a well succession plan. Most importantly there is no
annual plan for human resource development and there is no off the job training facility for
existing human resources although the company arranges training occasionally at the
invitation of various professional institutions.
According to the Organogram, there should have been 656 employees whereas the number
of existing employees was 565 as on 30th June 2006 consisting of 151 Management Staff,
128 Non Management Staff (Clerical) and 286 Non Management Staff (Non Clerical). JOCL
recruited 5 Non Management Staff (Clerical) during the Year 2006 and 4 entry management
level officers in 2007.
5.4 Information Disclosures & Accounting System

Moderate information The information disclosures of the company in Audited Accounts, Annual Report and other
disclosure publications are moderate. The company is yet to open any website to make its activities
public. The breakup of different accounts head in the audited accounts are yet to be
elaborated like trade debtors, detailed adjustment of different system loss, creditors and
others. The disclosures regarding different accounting principles and policies, mode of
transactions, allowable loss, loss over the allowable limits and other different issues are not
enough to depict the operation of the company.
No website to Stocks of various products are valued at ERL transfer price. Others Products and Spares are
represent JOCL valued at cost on weighted average method. Margin of products supplied by BPC and other
Gas Companies are recognized after delivery of goods. The income it earns is termed as
Margin which is fixed and determined by the Govt. JOCL has no control over fixing the price
of the products. The company records Purchase on receipt of the products and recognizes
Sales on delivery of the same under accrual methods of accounting. According to changed
policy of presentation of accounts, ‘Margins’ are fixed by the Govt. which is recognized as
Revenue Earning and these are presented in accounts under the head ‘Net Earnings’.
5.5 Preparation towards SEC Notification

JOCL is still a closely held public limited company owned by the Government. The
composition of the Board, formation of management structure, style of management,
65
disclosures etc are all Securities and Exchange Commission (SEC) corporate governance
guideline after being a listed company, the company needs to have at least one Independent
Director in the Board and a Board Audit Committee with at least three directors including one
Independent Director. In addition, the company will be required to have a Chief Finance
officer, independent Internal Auditor and a Company Secretary. The Company Secretary is to
work as the Compliance Officer. Since JOCL is going to off load its shares to the public, these
minimum corporate governance guidelines will be required to be complied with although the
guideline, at present, has been in operation on the basis of “comply or explain”. JOCL at
present has Company Secretary and Internal Audit Department. However, the responsibilities
of the above Departments need to be revised.
6.0 MANAGEMENT INFORMATION SYSTEM
The management information system of JOCL is at preliminary stage though the issue was
Traditional IT taken up in 1990 with 2 Programmers and 5 Data Entry Operators. The entire application
infrastructure program has been developed by its own programmers using ORACLE. The existing program
supports five modules including Payroll System, Credit Control System, Banking System,
Store Inventory System and LPG Sales Ledger. Presently there is one Manager (IT), One IT
officer and 06 Data Entry Operators working in this section under the Finance Dept. Another
04 members of data entry operators are engaged under contract basis to update pending
data entry and recruitment of 02 IT officers is under process. Although the company has
been maintaining huge database, the data updating is always lag behind one year of present
operation. The major problems faced by the Department are absence of integrated software,
delay of information processing from up country depots, manual operation system in depots
and different Departments, lack of qualified technical human resources. At present all the
Departments are processing their own data on requirement basis, which is ultimately a
duplication of works due to limitation of existing database to support current information
Absence of automation need. The company is in need of ERP (Enterprise Resources Planning) software.
(ERP) in MIS
Recently a tender has been floated for Integrated Accounting System of approximate 21
modules of the company’s various departments and network with the JOCL (Head Office) and
Main Installations. The management expects that it will be completed within the Year 2008
and the Company’s future plan is to incorporate all major depots under a computer network
step by step.
7.0 RISK MANAGEMENT
7.1 Operational Risk Management

The operational risk is defined as the risk of loss resulting from inadequate or failed internal
processes, people and systems or from external events. Some of the examples of Operational
Risks are internal and external frauds, legal risks, damages to clients, diversity, damage to
physical assets, business interruptions etc. The global best practice suggests that any
corporate irrespective of size and business must identify and assess all operational risk
against all of its products and services and monitor the same by an operationally independent
professional.
7.1.1 Internal Control System and Compliance

Scanty human JOCL is yet to formulate Operational Manual to define and specify the operations of each
resources in internal Department; however, the Departmental functions are guided by their long traditional
audit department practices. The top management of the company and BPC provide different orders and
directives time to time for effective control of operations. The company has divided all
operational activities through eight Departments and clustered into four tiers as Head Office,
Main Installation, Regional Office and Depot Operations. It has an established reporting line
from top tier to lower tier and also the check and balance procedure for effective control.
Though Internal Audit Department is supposed to review the functions of each Department
and find the irregularities, the Department is not adequately equipped with qualified human
resources (especially at lower level) to supervise the overall internal operational procedure
specified by the Terms of Reference. The company activities are also audited by Government
Commercial Audit Department. According to Commercial Audit Claim Statement as on 30th
June 2007, there existed 363 unadjusted claims with an amount of Tk 814.24 million out of
which 259 claims were related to salary & allowances amounting Tk 266.60 million. Again,
category wise above claims regarding as: fraud (1 claim for Tk 0.16 million), shortfall
66
(24 claims for Tk 133.71 million), payment out of rules (274 claims for Tk 356.74 million),
failed in collecting fund from Government (39 claims for 186.36 million) and others (25
claims for Tk 137.27 million). An independent and strong internal audit department could
have ensured the overall operational efficiency and effectiveness.
7.1.2 Internal Audit Process

The responsibilities of Internal Audit include - monitoring the activities of all departments and
reporting to the Managing Director for any irregularities, checking the physical inventories of
the depots twice in a year, taking accounts of all assets in every two year, scrutinizing any
voucher payable more than Tk. 5000 and also the petty cash, ensuring bank reconciliation
account, assisting commercial audit and settling complaints of commercial audits. At present
the Internal Audit Department is operating with five officers/staff out of which only one staff
is at management grade. CRISL considers that the above staff strength is insufficient and it
needs professional level staff at management level. The Department has no annual audit plan
according to their job responsibilities. The Internal Audit team conducted a very few surprise
visits in FY 2005-06. The Internal Audit Department is operating under Managing Director in
absence of Board Audit Committee. An independent and strong Internal Audit Department
with qualified human resources could have increased operational efficiency through proper
monitoring and also could have reduced operational risk to a greater extent.
7.1.3 Management of System Loss

Govt. fixed allowable The business has natural system loss which can be divided into three categories such as
system loss Conversion loss, Transit loss and Operational loss. Government has formulated guidelines to
manage the above losses and also set the allowable limits of transit loss. Conversion
gain/loss of refined products arises due to sale at natural temperature as against purchase of
petroleum products at 30° C and it is adjusted with the turnover amount. Operational
gain/loss is calculated on closing inventory due to temperature difference from 30° C which is
adjusted with the cost of goods sold. Transit gain/loss occurred during transportation of
petroleum products, which is realizable from BPC through Freight- Pool account to the extent
of government allowable quantity and the value over allowable quantity is realizable from the
concerned tanker freight bill. The government has set allowable limits to the extent of 0.35%
for Petrol and Octane, 0.20% for Diesel and Kerosene and 0.10% for Furnace Oil.
7.1.4 Fire Protection System

Moderate fire Strong fire protection system is a must for Oil Company. JOCL has established its fire hydrant
protection system line throughout Main Installation and other depots, and it has placed fire extinguishers,
extinguishers carrying vehicles, sand box and other apparatus at various key points. The
company arranges training of the workers on immediate fire protection measures and also
maintains high safety & security in the plant area. Other fire stations are nearer to Main
Installation and the area is also highly protected. For all these measures, JOCL has not so far
faced any major fire casualties in recent years. All petroleum products and Lubricants are
insured by fire insurance policy with Sadharan Bima Corporation.
7.1.5 IT Disaster Management System

No off-site data The company introduced server based data storage system from the beginning. Daily back up
storage facility for is also taken the closure of every working day in another PC Server as extra caution.
safety Database can be restored from another PC server within 03 hours if the server is broken
down. The JOCL also takes tape back-up in 4 mm tape to store data in every weekend and
preserved it in the JOCL’s first floor. If the Computer Server in the JOCL computer section is
damaged by natural calamity or fire, the back-up can be restored within 06 hours in the
same computer server. In order to avoid any sudden disaster like fire or catastrophic
situation, the company is required to maintain data storage facility outside the office
premises which is absent in the company.
8.0 PERFORMANCE
Good financial
performance 8.1 Financial Performance
The financial performance indicators of JOCL is satisfactory, however the` same was
appeared to be inconsistent in the last few years. The company reported a net profit before
tax of Tk. 248.73 Million at the year end 30th June 2006 agaisnt only Tk 4.59 Million in last
year. After tax provision of Tk 120 Million, the Net profit after Tax stood at Tk 128.73 million
at FYE 2005-06 against Tk 2.87 million at FYE 2004-05 representing huge growth over the
67
year. The above net profit of the company was reported without including an amount of Tk
Huge provision gap for 110 Million provision for Gratuity and a substantial amount of provision against doubtful
gratuity receivables of Tk 44.37 million, which has been remaining outstanding for a long time.
Trading profit margin was at par with the peer median of 25.53% in FY2005-06 whereas the
above ratio was 3.61% in FY 2004-05. Again net profit margin also increased substantially to
26.30% for FY 2005-06 compared to 0.91% for FY 2004-05. Earning per share (EPS) of Tk
ROAA before tax 10 of the company was Tk. 25.75 for FY 2005-06 compared to Tk. 0.57 for FY 2004-05. The
4.27% above EPS may decrease in future due to recent decision of the company to increase its
share capital base to Tk 450.00 million from Tk 100 million by converting the reserve to paid
ROACE before tax up capital.
11.26%
CRISL measures the profitability of any organization in terms of Return on Average Assets
ROAE before tax (ROAA), Return on Average Capital Employed (ROACE) and Return on Average Equity on
37.85% before tax profit basis. Return on average asset (ROAA) before tax increased to 4.27% for FY
2005-06 compared to 0.09% for FY 2004-05 and the above ratio was equal to its peer
median in FY 2005-06. Return on average equity (ROAE) before tax also increased to 37.85%
for FY 2005-06 against 0.78% for FY 2004-05, which was also at par with peer median.
Return on average capital employed (ROACE) before tax was also increased to 11.26% for FY
2005-06 compared to 0.32% for FY 2004-05 against the peer median of 20.39% for FY2005-
06.
Moderate operating 8.2 Operating Performance

performance JOCL has been operating with moderate operating performance. In the FY 2005-06, the
company reported gross margin of Tk. 489.39 Million which was Tk. 315.04 Million for FY
2004-05 representing growth of 55.34% in FY 2005-06, while the above growth rate of
industry was 32.45% in the same financial year. Again, it achieved 73.88% growth in gross
margin from lubricants products for FY 2005-06. The gross margin of the company consisted
of 85.88% by petroleum products, 10.62% by lubricants products for FY 2005-06 against
Future plan to capture 87.18% and 9.49% for FY 2004-05 respectively representing that lubricants business is
lube market growing fast.
Although the product wise sales performance in JOCL is in line with the industry trend for
petroleum products, the company has been expanding fast in lubricants business compared
to other oil marketing companies. The above was due to lower prices of lubricants products
(i.e. Mobil lubricants) compared to other competitors and also for their aggressive marketing
strategy by the producer. The company has also formulated future plan to capture the Lube
market, as Lube is more profitable item compared to other fuel oil products.
Moderating operating 8.3 Operating Efficiency

efficiency The efficiency related indicators of the company showed better performance over the
previous year. The company reported gross margin of Tk. 489.39 million against gross
turnover of Tk. 37,283.40 million for FY 2005-2006 representing gross margin ratio to
turnover was 1.31% and 1.12% for FY 2005-06 and FY 2004-05 respectively, whereas this
gross margin ratio of Padma Oil Company and Meghna Petroleum Ltd. were 1.27% and
1.17% respectively for FY 2005-06. As the oil marketing companies earn fixed margin
specified by the government, so the above variations in margin to turnover are mainly due to
Gross margin to adjustments of different system losses incurred by the respective company. JOCL reported
turnover stood at operational gain of Tk. 17.67 million and transit loss of Tk. 99.10 million for FY 2005-2006.
1.31% Again, out of the above transit loss, the company recovered Tk. 74.66 million from BPC
through Freight Pool Account, Tk. 19.22 million from Tanker owner and the rest Tk. 5.22
million increase in the cost of sales.
The efficiency related indicators of the company show moderate performance compared to
other peer companies. The cost efficiency (i.e. trading cost to gross margin) ratio of the
company reduced to at par with the peer median of 74.47% for FY2005-06 compared to
96.39% for FY2004-05 due to higher growth in gross earnings over cost. Selling, distribution
& administrative cost to gross margin ratio reduced to 56.65% for FY 2005-06 against
68.85% for FY 2004-05. Finance cost to revenue ratio also reduced to 13.78% for FY 2005-
06 compared to 21.50% for FY 2004-05. From cost efficiency analysis, CRISL believes that
JOCL has improved in cost efficiency performance substantially over its previous period.
9.0 ASSET STRUCTURE
The net asset base of the company stood at Tk. 721.52 million as on 30th June, 2006 which
was composed of Operating assets of Tk. 195.60 million (27.11%), Investment of Tk. 175.40
million
68
(24.31%), and working capital of Tk 350.52 Million (48.58%). Out of the total current assets
Working capital of Tk. 6,068.67 Million- Tk 2430.00 Million was composed of trading inventories (40% of
48.58% of capital current asset) However, there was a huge amount of Tk 2802.86 million as advances and
employed loan which reveals huge unadjusted amount that might take long time for recovery.
9.1 Fixed Assets

JOCL has 47.1757 acres of land comprising of 41.413 acres freehold land and 5.7627 acres
leasehold land. Out of total freehold land, 2.30 acres are yet to be registered in the name of
Solid footing of assets JOCL. It is notable here that land measuring 1.71 acres is possessed by Chittagong Dry Dock
Ltd. The leasehold land has been acquired from Chittagong Development Authority (CDA),
Eastern Refinery Limited, Chittagong Port Authority (CPA), RAJUK and others. The valuation
of the above land was conducted by Hoda Vasi Chowdhury & Co effective as on 30th June
2005 and the value of land stood at Tk. 1913.49 million against book value of Tk 17.41
million (Freehold land Tk. 9.83 million and Leasehold land Tk. 7.58 million) as on 30th June
2006 indicating huge hidden value of the assets. Building was revalued at TK. 59.14 million
as on 30th June 2005 against a written down value of building was Tk. 11.51 million as on
30th June 2006. Plant & machinery and other fixed installations were revalued at Tk. 566.02
million as on 30th June 2005 against written down value of plant & machinery and other fixed
installations was Tk. 119.97 million as on 30th June 2006. The above valuation of the fixed
asset base places the company in a very solid footing of assets.
9.2 Investments
JOCL has investment in its two joint ventures- Mobil Jamuna Lubricants Ltd. and Mobil
Jamuna Fuels Ltd. The company invested Tk 175.40 million in the shares of both the
companies equally (8770 shares of Tk. 10,000 each) as on 30th June 2006. The Board of
Investment in MJLL JOCL approved the agreement to establish the above Joint Venture Companies on 6th
(20% holdings) October 1997. The Ministry of Power, Energy & Mineral Resources and GoB accorded approval
on 22nd June 1998 to sign the Joint Venture Agreement and subsequently BPC gave the
approval on 30th June 1998. In this connection two agreements were signed between
Jamuna Oil Company Ltd and Mobil Asia Pacific Ltd. on 26th July 1998 in the name and style
of Mobil Jamuna Lubricants Ltd. (MJLL) and another Mobil Jamuna Fuels Ltd. (MJFL). As per
agreement, JOCL transferred 12.35 acres of land value of Tk. 175 Million in June 1999 in
favor the above two companies.
According to the contract, MJLL can import base oil and process for lubricants products and
also markets the products according to their set price through distributors. After the contract
JOCL became just a Distributor of MJLL from sole distributor of its previous status, which was
a suicidal agreement for JOCL, and it took place for the then political influence. MJLL is yet to
declare any dividend for FY 2006, however, earned dividend of Tk. 10.52 million from MJLL in
FY 2005.
Mobil Jamuna Fuels Ltd. has not come into operation yet as it is not getting approval from
Unutilized investment concerned authorities for bottling of LPG because LPG is a highly flammable product and
in Mobil Jamuna Fuels there is no possibility of getting approval soon. JOCL is losing its opportunity of utilizing
Ltd. property, which should be noticed by the management of JOCL and the agreement for joint
venture with Mobil Jamuna Fuels Ltd. should immediately be reviewed according to the
contract.
9.3 Quality of Receivables

The reported book debt was Tk. 345.75 million after adjusting provision for doubtful debt of
Long dues receivables Tk. 5.63 million as on 30th June 2006.This book debts include LPG distribution A/C of Tk.
25.97 million, Sundry debtors of Tk. 325.38 million. As there was no schedule for year wise
break up, it was not possible to judge the quality of the amount due from distributors.
Sundry debtors include amount Tk. 44.37 million (13.64% of sundry debtors) which has been
No provision against due from Balaka Filling Station for a long time and recovery is also uncertain but no provision
long outstanding has been made for this.
9.4 Quality of Advances

The reported amount of advances was Tk. 2,566.12 million as on 30th June 2006 which
includes an amount of Tk.770.39 million (30% of total advances) receivable from BPC.
Advances include an amount of Tk. 82.51 million to BPC Price Equalization Fund on Bunker
but from verifications, it has been observed that huge amount remains unrealized for a long
time. Freight Pool Receivable from BPC stood at Tk. 222.85 million as on 30th June 2006 but
it has been found that huge amount was unrealized for a long time. A considerable amount of
69
Recoverable Charges has debt. It has been also found that huge balance remains unrealized
for a long time. The above issues were also reported to management by the external
auditors. Immediate steps are to be taken by the management of JOCL so that the financial
statements can represent a true and fair view of the company.
10.0 ACTIVITY ANALYSIS
The capital turnover ratio of JOCL improved and stood at par with peer median of 56.73
times for FY 2005-06 compared to 47.66 times for FY 2004-05 representing moderate
Moderate performance performance in capital utilization. Inventory turnover ratio of JOCL improved to 12.67 times
in capital utilization for FY 2005-06 compared to 10.34 times for FY 2004-05 against peer median of 15.82 times
for FY 2005-06 which indicates lower performance in inventory management among the peer
companies. The receivable turnover ratio is better compared to its peer companies and the
above ratio was 117.08 times for FY 2005-06 against 63.95 times for FY 2004-05 which
shows lower outstanding against its turnover. Working capital turnover was 106.37 times for
FY 2005-06 against 118.85 times for FY 2004-05 which is also at par with the peer median.
11.0 LIQUIDITY & SOLVENCY DIMENSION
Moderate liquidity JOCL has been operating with moderate liquidity position compared to its peer. The current
position ratio of the company was 1.06 times as on 30th June 2006 against 1.05 times as on 30th
June 2005. Due to high dependency on inventory, the quick ratio for JOCL stood at 0.62
times for FY 2005-06 against 0.32 times for FY 2004-05.
JOCL has no bank liability rather products are procured from BPC on credit basis after
No long term financial incurring interest to BPC as according to price structure specified by the Government and also
obligation paying interest on WPPF fund. In view of the above, Interest coverage ratio of JOCL stood at
4.69 times for FY 2005-06 against 1.07 times for FY 2004-05 indicating sound income back
up against financial burden. Internal capital generation improved notably for FY 2005-06
which stood at 19.59% whereas it was only 0.48% for FY 2004-05.
12.0 CAPITAL ADEQUACY
JOCL has been operating with a paid up capital of Tk 50 Million consisting of 5 Million shares
of Tk 10 each and the above paid up capital base increased from Tk 50 million to Tk. 100
Sound equity base
million in FY 2005-06 through issuance of bonus share. The above paid up capital was
supported by huge amount of reserves and surplus for sound capital base. Considering the
above, the capital employed in business of JOCL stood at Tk 721.52 Million, Tk 592.79 Million
and Tk 589.92 Million as on 30th June of FY 2005-06, FY 2004-05 and FY 2003-04
respectively. The above paid up capital of the company was only 13.86% of the capital
employed which was quite low. While reviewing the capital structure of the company, it has
been noticed that the company does not have any long term liability. Therefore, the entire
asset financing with substantial value at the current context is financed by paid up capital
and reserves only. The above asset increase of the company has been financed through
utilization of free reserves and therefore the reserve has virtually been converted to a part of
invested capital. The company at this stage would not be able to dilute the reserve through
payment of cash dividend. Based on the above understanding, the company has recently
decided to convert a portion of the reserve to Paid up Capital by issuing bonus share.
Net asset value (NAV) per share (Tk.10 each) of JOCL increased at Tk. 144.30 as on 30th
NAV stood at Tk.
June 2006 against TK. 118.56 as on 30th June 2005 but due to issuance of bonus share of Tk.
144.30 before recent
50 million in FY 2005-06 the above NAV will decrease to Tk 72.15 after adjustment of the
paid up capital
stock dividend amount. Again after the implementation of the recent decision of raising
increase
capital further through bonus share, the NAV will descend further.
70
13.0 SWOC ANALYSIS
Strengths: Weakness:
● Fully Government owned organization ● Traditional management structure with
● Wide distribution network Government interference
● Sound Asset base ● Transit loss above allowable limit
● Low Human resources turnover ● Dependent on BPC and Government for
● Good financial performance business
● No long term financial obligation ● Poor delegation of power
● Sound Hard Infrastructure ● Long outstanding with Government
organizations
● Huge Unrealizable Advances
● Absence of automation in MIS
● Scanty Human Resources in internal
audit department
● Lost sole distributorship of Mobil
lubricants
Opportunities: Challenges:
● Large exposure of lubricants market ● Absorb the shock of transformation
● Large exposures of LPG market ● System loss
● Scope of Product diversification ● Increasing competition in the lubricants
market
● Manpower grooming for future challenge
14.0 PROSPECT
Oil sector is considered to be the most sensitive sector of economy and macro economic
indicators are greatly influenced by the supply and price movement of petroleum products.
By considering its sensitivity to economy, Government has taken oil sector under its absolute
control by establishing Bangladesh Petroleum Corporation. With the change in economy and
development of capital market, GoB has decided to dilute its control over oil sector by off
loading the shares of oil companies through direct listing in the stock market. As per GOB
decision, Padma Oil Company Ltd. has already been listed in the stock market and other two
state owned oil companies namely Jamuna Oil Company Ltd. and Meghna Petroleum Ltd. are
about to offload their shares soon. This is a prudent decision of GoB, which will result better
operational efficiency in oil companies with GOB controlling shareholding and this will have a
positive impact on the stock market.
JOCL has a long history of operation in oil sector with wide network and distribution channel.
It has also great contribution in establishing equal price for petroleum products all over the
country with proper supply. JOCL can reach to more competitive edge by establishing strong
Internal Audit Department, developing Integrated MIS through ERP (Enterprise Resources
Planning), reducing Operational Losses, realizing of long due receivables, recruiting and
training of Human Resources and making more Information Disclosures. As JOCL is going to
offload its 30% shares, it will require more transparency and more operational and financial
efficiency. CRISL believes that JOCL is a long tested company with vast operational
experience in oil sector for about four decades will do well both in operational and financial
performance and this will increase the depth of capital market of Bangladesh with good
securities.
End of the Report
Information used herein is obtained from sources believed to be accurate and reliable.
However, CRISL does not guarantee the accuracy, adequacy or completeness of any
information and is not responsible for any errors or omissions or for the results obtained from
the use of such information. Rating is an opinion on credit quality only and is not a
recommendation to buy or sell any securities. All rights of this report are reserved by CRISL.
Contents may be used by news media and researchers with due acknowledgement.
71
15.0 CORPORATE INFORMATION
Year of Incorporation : 12 March, 1975
Commencement of Business : 12 March, 1975
Conversion: Converted to Public Limited Company as on 25th June 2007.
Directors :
Mr. Md. Wahidunnabi Choudhury Chairman Additional Secretary

Ministry of Energy, Petroleum & Mineral
resources
Mr. Anwarul Karim Director Chairmen, BPC
Mr. Md. Alauddin Director Joint Secretary
resources
Mr. Ahmed Ali Director Member, National Board of revenue
Mr. Arastoo Khan Director Joint Secretary, Ministry of Finance
Mr. Syed Md. Matlubur Rahman Director Deputy Secretary
resources
Mr. Md. Masudur Rahman Director Managing Director
Auditor : Messrs M.J. Abedin & Co.

Messrs Howlader Yunus & Co.
Management :
Mr. Md. Masudur Rahman Managing Director

Mr. Qudrat-e-Elahi General Manager (Marketing & Audit [in charge])
Mr. Syed Giasuddin Ahmed. Deputy. General Manager (Residence)
Mr. Md. Ferdousul Karim Deputy General Manager (Engg. & Personnel)
Mr. Md. Asadul Hoque Deputy General Manager (Sales)
Mr. Abdur Rahman Deputy General Manager (Operation)
Mr. A A M Saifuddin Deputy General Manager (Finance)
Capital History:
Authorized Issued, Subscribed and Issue of

Source of
Year Capital (Million Paid-up Capital (Million Bonus
Capital
Taka) Taka) Share
2001-02 100.00 50.00 - Sponsors
2002-03 100.00 50.00 - Sponsors
2003-04 100.00 50.00 - Sponsors
2004-05 100.00 50.00 - Sponsors
2005-06 3000.00 100.00 50.00 Bonus
2006-07 3000.00 450.00 350.00 Bonus
72
16.0 Financials
Fig: Tk. In Million
Particulars 2006 2005 2004 2003

Non-Current Assets:
Property, Plant & Equipment 148.89 156.61 149.92 149.00
Capital work in progress 46.71 24.04 18.50 6.92
Investment 175.40 175.00 175.00 175.00
Total Non-Current Assets 371.00 355.65 343.42 330.92
Current Assets:
Inventories 2,506.16 3,376.86 2,076.12 2,399.45
Trade Debtors 345.75 291.13 590.37 633.43
Adv. Deposits & Prepayments 2,802.86 853.36 1,773.60 1,796.35
Other Current Assets (5.65) 82.65 56.72 24.24
Cash & Bank Balances 419.55 251.09 222.96 232.54
Total Current Assets 6,068.67 4,855.08 4,719.77 5,086.01
Current Liabilities:
Trade Creditors 2,990.30 2,951.75 3,364.57 4,725.59
Liabilities for Expenses 2,727.84 1,666.19 1,046.20 -
Proposed Dividend - - 62.50 37.50
Other ST Liabilities - - - 25.00
Total Current Liabilities 5,718.14 4,617.95 4,473.27 4,788.09
Net Current Assets 350.52 237.13 246.50 297.92
Net Assets 721.52 592.79 589.92 628.84
Shareholders' Equity:
Share Capital 50.00 50.00 50.00 50.00
Proposed Stock Dividend 50.00
Capital Reserve 152.83 152.83 152.83 152.83
Other Reserve 465.00 425.00 425.00 425.00
Retained Earnings 3.68 (35.05) (37.91) 1.01
Total Shareholder's Equity 721.52 592.79 589.92 628.84
Total Equity and LT Liab. 721.52 592.79 589.92 628.84
Total Assets 6,439.66 5,210.73 5,063.19 5,416.93
73
Income Statement
Fig: Tk. In Million
Particulars 2006 2005 2004 2003
Net Earnings 489.39 315.04 204.85 290.88
Expenses:
Salary & Allowances 201.93 152.09 136.16 140.36
Repair & Maintenance 7.28 10.21 9.82 7.50
Rents, Rates, Taxes and Insurance 23.01 10.68 7.32 8.24
Traveling, Conveyance & Vehicle Expenses 8.24 8.63 7.25 8.01
Others 36.79 35.30 38.15 39.98
Total Selling, Distribution & Admin Expenses 277.25 216.91 198.70 204.09
Financial Expenses 67.42 67.73 65.95 61.00
Depreciation 19.76 19.03 18.45 18.53
Trading profit/(Loss) 124.96 11.37 (78.25) 7.26
Other Income 136.86 52.71 38.58 79.81
Other Non-Operating Income/(Exp.) (13.09) (59.49) - (4.35)
Profit Before Tax 248.73 4.59 (39.66) 82.71
Income Tax 120.00 1.72 3.75 33.60
Profit After Tax 128.73 2.87 (43.41) 49.11
Previous Year P/L (35.05) (37.91) 1.01 4.40
Accumulated Profit from Appropriation 93.68 (35.05) (42.40) 53.51
Proposed Stock Dividend 50.00 - - 37.50
Reserves & Others 40.00 - (4.49) 15.00
Retained Profit Transferred to BS 3.68 (35.05) (37.91) 1.01
74
Article II. CRISL RATING SCALES AND DEFINITIONS
LONG-TERM RATINGS OF CORPORATE
RATING DEFINITION
Investment Grade
AAA
Entities rated in this category are adjudged to be of best quality, offer highest
Triple A
safety and have highest credit quality. Risk factors are negligible and risk
(Highest
free, nearest to risk free Government bonds and securities. Changing
Safety)
economic circumstances are unlikely to have any serious impact on this
category of companies.
Entities rated in this category are adjudged to be of high quality, offer higher
AA+, AA,
safety and have high credit quality. This level of rating indicates a corporate
AA-
entity with a sound credit profile and without significant problems. Risks are
(Double A)
modest and may vary slightly from time to time because of economic
(High Safety)
conditions.
A+, A, A- Entities rated in this category are adjudged to offer adequate safety for timely
Single A repayment of financial obligations. This level of rating indicates a corporate
(Adequate entity with an adequate credit profile. Risk factors are more variable and
Safety) greater in periods of economic stress than those rated in the higher
categories.
Entities rated in this category are adjudged to offer moderate degree of safety
BBB+, BBB,
for timely repayment of financial obligations. This level of rating indicates that
BBB-
a company is under-performing in some areas. Risk factors are more variable
Triple B
in periods of economic stress than those rated in the higher categories. These
(Moderate
entities are however considered to have the capability to overcome the
Safety)
above-mentioned limitations.
Speculative Grade
BB+, BB,
BB-
Entities rated in this category are adjudged to lack key protection factors,
Double B
which results in an inadequate safety. This level of rating indicates a company
(Inadequate
as below investment grade but deemed likely to meet obligations when due.
Safety)
Overall quality may move up or down frequently within this category.
Entities rated in this category are adjudged to be with high risk. Timely
B+, B, B- repayment of financial obligations is impaired by serious problems which the
Single B entity is faced with. Whilst an entity rated in this category might be currently
(High Risk) meeting obligations in time, continuance of this would depend upon favorable
economic conditions or on some degree of external support.
C Entities rated in this category are adjudged to be with very high risk of timely
(Very High repayment of financial obligations. This level of rating indicates entities with
Risk) very serious problems and unless external support is provided, they would be
unable to meet financial obligations.
Default Grade
D
(Default) Entities rated in this category are adjudged to be either already in default or
expected to be in default.
Note: For long-term ratings, CRISL assigns + (Positive) sign to indicate that the issue is
ranked at the upper-end of its generic rating category and - (Minus) sign to indicate that the
issue is ranked at the bottom end of its generic rating category. Long-term ratings without
any sign denote mid-levels of each group.
75
Article III.
Article IV. SHORT-TERM RATINGS OF CORPORATE
Highest Grade
Highest certainty of timely payment. Short-term liquidity including internal fund

ST-1
generation is very strong and access to alternative sources of funds is
outstanding. Safety is almost like risk free Government short-term obligations.
High Grade
ST-2 High certainty of timely payment. Liquidity factors are strong and supported by
good fundamental protection factors. Risk factors are very small.
Good Grade
Good certainty of timely payment. Liquidity factors and company fundamentals

ST-3
are sound. Although ongoing funding needs may enlarge total financing
requirements, access to capital markets is good. Risk factors are small.
Satisfactory Grade
ST-4 Satisfactory liquidity and other protection factors qualify an entity to be in

investment grade. Risk factors are larger and subject to more variation.
Non-Investment Grade
Speculative investment characteristics. Liquidity is not sufficient to ensure

ST-5
discharging debt obligations. Operating factors and market access may be
subject to a high degree of variation.
Default
ST-6 Entity is in default or is likely to default in discharging its short-term obligations.

Market access for liquidity and external support is uncertain.
76
Additional Disclosure
1) Half yearly Audited Financial Statements of JOCL as of 31-12-2006 as included in the
Information Document (ID) are older than 180 days and the company could not prepare and
audit Financial Statements up to 30-06-2007 as required under the provisions of the
Company’s Act, 1994.
2) A comparative statement of Profit and Loss Account for the years 2001-02, 2002-03, 2003-04, 2004-
05, 2005-06 and for the period from 01-07-2006 to 31-12-2006 alongwith explanation of significant
fluctuation of financial result is shown in statement of operating results of the company under section
135 (1) and para 24 (1) of part –II of schedule-III of the companies Act 1994. This is to note here that
fluctuation of financial result of the company occurred mainly due to effect of decisions of the
Government/BPC from time to time which are stated bellow:
Note 01: Margin of Petroleum Products has been increased by the Government with effect from 04-9-2005
and as such margin from the year 2005-06 to onward has been higher compared to previous years.
Increase in margin is as under :
Per Litre – Taka
Particulars HOBC MS SKO HSD JBO LDO FO
Margin effective from 04-9-2005 TK. 0.27 0.27 0.18 0.18 0.17 0.17 0.15
Previous Margin TK. 0.23 0.24 0.14 0.14 0.13 0.13 0.11
Increase from 04-9-2005 TK. 0.04 0.03 0.04 0.04 0.04 0.04 0.04
Note 02 : Price differential from condensate represents income generated out of difference between the cost of
products (HSD, SKO, MS) received from Gas fields (SGFL, RPGCL etc.) and Ex-ERL price. This
is to note here that both the Gas field price and ERL price are fixed by the Government.
Note 03 : The Company earned income from product operational gain (working & conversion) from the year
2005-06 to onward instead of loss in the earlier years. This has been possible due to proper
monitoring and efficient product and operational management.
Note 04 : Administrative, Selling and Distribution expenses have increased more in the year 2005-06 due to
provision of Gratuity for TK. 50.00 million.
Note 05 : Financial expenses represents interest included in marketing Company’s margin which has been
paid to BPC. Interest per litre included in margin of the company is as under :
HOBC MS SKO HSD JBO LDO FO
TK.0.0699 TK.0.0538 TK.0.0527 TK.0.0527 TK.0.0525 TK.0.0525 TK.0.0506
Note 06 : Bank interest represents interest income received from short term Bank deposits. This is to note that
as per BPC’s decision interest over TK. 10.00 million for a year had to be paid to BPC in the year
2003-04 and 2004-05.
Note 07 : Dividend received from Mobil Jamuna Lubricants Limited (MJLL), a join venture company with
Jamuna Oil Company Limited in the year 2004-05 represents dividend paid for the year 2002 by
MJLL.
Note 08 : Handling commission earned from BPC by handling of imported products, NGC and export of
Furnace Oil.
Note 09 : Net income from Tanker Operation generated out of difference between allowed freight and actual
freight paid to hired tankers.
Note 10 : Other income from other various sources was negative in the years 2004-05 and back due to loss in
pesticide marketing and operation of our tanker MT. Jamuna. Subsequently our tanker MT. Jamuna
has been leased to outsider on rental basis and pesticide marketing has been closed and accordingly
profit has been earned.
Note 11 : Interest paid back to BPC represents payment of interest income from short-term bank deposits in
the year 2002-03 over TK. 10.00 million to Bangladesh Petroleum Corporation (BPC) as per
decision of the corporation.
77
3) To establish a Joint Venture Company, Jamuna Oil Company Limited and Mobil Asia Pacific (Pte)
Limited signed two Joint venture agreement on 26-7-1998, in the name and style of Mobil Jamuna
Lubricants Ltd. (MJLL) and Mobil Jamuna Fuels Limited (MJFL) JOCL has investment 25% of total
paid-up-capital respectively in the the above two companies .
MJLL was incorporated on 03-12-1998 as a private limited company. The company went into
commercial operation on 20-5-1999. Commercial production commenced of the company on
02-7-2003. The business of the company is blending and marketing of Lubricants and Greases.
Against investment of MJLL, JOCL has been received net dividend Tk. 1,05,24,000/- for the year
ended 31st December 2002 and Tk. 74,54,500/- for the year ended 31st December 2005 received on
11-6-2007.
Mobil Jamuna Fuels Limited (MJFL) is a private limited company incorporated in Bangladesh under
companies Act 1994 on 03-12-1998. The company was established to carry on business as designer,
constructor, owner and operator a Liquefied Petroleum Gas (LPG) and other Petroleum based fuel
terminal and related facilities to import blend and distribution of Mobil branded LPG and other
Petroleum products. But Chittagong Port Authority did not give NOC for establishing LPG plant in
Port area.
Under the above circumstances management of the company decided to establish premium motor
gasoline producing plant. In this connection MJFL applied to the Ministry of Power, Energy and
Mineral resources for allocation of Naphtha as feedstock for producing motor gasoline.
4) Contingent Liability in respect of Income Tax amounting to TK. 37.04 million has arisen due to
unjustified assessment of income of the company for the assessment year 2005-06 (Income Year
2004-05) by the Deputy Commissioner of Taxes against which appeal is pending with the Taxes
Appellate Tribunal. We are hopeful of getting Order/Judgment infavour of the company by which
contingency will be settled.
5) A comparative statement of Sundry Debtors (Book Debts), Advance & Deposits and Sundry Creditors
is enclosed herewith (Enclosure – 1). Book debts are basically related with PDB and other
Government concerns. Advances and Sundry Creditors are mainly related with BPC and other oil
companies which are adjustable with each other and as such fluctuation of figures on a particular date
happens in normal course of business. Deposits are also with other oil companies and Custom
Authority.
6) Jamuna Oil Company Limited consistently accounted for gratuity on cash basis since incorporation.
As per decision of the 312th Board Meeting held on 13-06-2007 provision for gratuity has been made
for TK. 50.00 million in the year 2005-06 and for TK. 10.00 million in the period from 01-7-2006 to
31-12-2006. To form a gratuity fund provision for the balancing amount of TK. 102.70 million will be
made subsequently as per decision of the Company’s Board. This is to note here that formation of
gratuity fund is under process of approval from NBR for Tax relief purpose. Since the Company has
earned sufficient profit in the year 2006-07 and this trend will continue, no deficit/scarcity of
fund/cash will be occurred.
7) M/s. Balaka Filling Station received POL Products worth Tk.44.37 million from Rangpur Railhead
depot of Jamuna Oil Company Limited without making any payment in collusion with Mr. Abdus
Salam Miah, the depot incharge of Rangpur Railhead depot of Jamuna Oil Company Ltd. The total
transaction was made through invoice in which specific proof of receiving product by Mr. Ataur
Hossain Talukder, owner of Balaka Filling Station and of delivering product by Mr. Abdus Salam
Miah, depot incharge of Rangpur Railhead depot of Jamuna Oil Company Ltd. On that basis Jamuna
Oil Company Limited filed Money suit No. 04 of 2006 in the 1st Joint District Judge Court, Rangpur
against Mr. Ataur Hossain Talukder, Propritor M/s Balaka Filling Station & Mr. Abdus Salam Miah,
Depot incharge of Jamuna Oil Company Ltd. to recover the receivable amount worth Tk. 44.37
million. The money suit is now in setting date (S. D) stage. The next date of the money suit is 21-11-
2007.
The company authority has authenticated evidence for receiving product by Mr. Ataur Hossain
Talukder, Proprietor M/s. Balaka Filling Station. As such company authority thinks that the Judgment
of the Court will come infavour of the company. In view of the above situation, uncertainty of
recovery does not arise. Therefore the company authority did not make any provision against this
receivable amount.
78
8) Gross purchase and sales of products :
July’06 - Dec’06 2005-06
Sales TK. TK.
Main Product 1956.15 Crore 3624.52 Crore
Lubs & Grease 42.44 Crore 47.06 Crore
Bitumen 20.92 Crore 39.86 Crore
LPG 7.41 Crore 16.90 Crore
2026.92 Crore 3728.34 Crore
Gross Purchase
Main Product 1929.27 Crore 3582.49 Crore
Lubs & Grease 35.93 Crore 41.86 Crore
Bitumen 20.39 Crore 38.80 Crore
LPG 7.15 Crore 16.25 Crore
1992.74 Crore 3679.40 Crore
Gross earnings : 34.18 Crore 48.94 Crore
9) Jamuna Oil Company Limited has not borrowed any loan from any Bank or Financial
Institution. As per practice of the Company in four Banks Company maintained two
accounts; one is STD A/c and another is Current A/c. Current A/c is only used for payment of
cheques issued by the Company and adjusted by debit to STD A/c. as per advice given by the
Company.
10) As per Company’s Memorandum & Articles of Association appointment of directors clause
are quoted below :
“DIRECTORS
Number of Directors
128. Unless otherwise determined by the Corporation, the number of Directors of the
Company shall not be less than four and more than nine. The Directors appointed by
the Corporation shall not be required to hold any qualification shares.
(a) The Corporation shall nominate the Chairman, Managing Director, if any. and all
the Directors to the Board of the Company.
(b) The Directors shall be paid such salary and/or allowances as may be determined
by the Corporation from time to time.
(c) The Corporation shall have the power to remove any Director including the
Chairman, Managing Director, if any, from office at any time in its absolute
discretion.
(d) The Corporation shall have the right to fill any vacancy in the office of the
Director caused by removal, resignation, death or otherwise.”
After completion of the share off-loading majority share of BPC will remain. Therefore, as
per memorandum & articles of association composition of the Board of Directors of the Company
will be determined by Bangladesh Petroleum Corporation.
11) Since Jamuna Oil Company Limited was a Private Limited Company till 24-6-2007, half
yearly Financial Statements for the period from 01-07-2006 to 31-12-2006 as included in the
ID has not been prepared in the adherence to the provisions of SEC rules 1987 and IAS.
Therefore all the provisions of SEC rules 1987 and IAS shall be maintained for preparing the
forthcoming Accounts, i.e. Accounts of 30th June 2007.
79
Annexure – 1

Statement of Sundry Debtors (Book Debts), Advance & Deposits and Sundry Creditors
Figuers in Million
Taka
31-12-2006 30-06-2006 30-06-2005
SUNDRY DEBTORS ( BOOK DEBTS) 366.71 345.75 291.12

a) PDB 208.21 127.97 177.91
b) Bangladesh Railway 10.29 51.05 9.52
c) Defence 33.06 43.01 31.91
d) BCIC 50.14 50.73 50.73
f) Chittagong Port Authority 6.35 14.31 6.45
g) Chittagong City Corporation 5.77 5.78 5.78
h) M/s. Balaka Filling Station 44.37 44.37 0
i) Others Customers 14.15 14.16 14.45
J) Provision for Doubtful Debts (5.63) (5.63) (5.63)
ADVANCES AND DEPOSITS 5258.88 2802.86 853.36

ADVANCES 2522.09 2566.12 801.58
a) Various Account with BPC 2286.78 2358.59 606.69
b) Other Oil Companies 183.76 143.13 139.57
c) House Building Loan 18.12 16.27 13.13
d) Others 33.43 48.13 42.19
DEPOSITS 2736.79 236.74 51.78

a) Deposit with LPG Ltd. 25.16 25.16 25.16
b) Deposit with Custom Authority 2709.33 209.33 24.38
c) Deposit with others 2.30 2.25 2.24
SUNDRY CREDITORS 11267.51 5718.14 4617.94

FOR GOODS 5660.33 2990.30 2951.75
a) BPC 2294.62 1286.58 1663.72
b) Other Oil Companies 3174.59 1657.01 1247.19
c) Others 191.12 46.71 40.84
FOR EXPENSES 785.78 715.76 572.84

a) BPC 635.63 591.16 510.02
b) Chittagong Port Authority 14.87 11.31 11.14
c) Bangladesh Railway 10.20 13.43 8.65
d) Tankers Account 31.11 18.18 23.85
e) Gratuity 60.00 50.00 0
f) Others 33.97 31.68 19.18
FOR OTHER FINANCE 4821.40 2012.08 1093.35

a) BPC 4684.45 1870.23 1014.25
b) Security Deposit 52.63 52.72 49.86
c) Dealers Commission 82.31 82.31 25.18
d) Others 2.01 6.82 4.06
80

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“If you have any queries about this document, you may consult issuer and issue manager.

Information Document for Direct Listing

JAMUNA OIL COMPANY LIMITED

Listing Approval Date DSE : November 18, 2007

Manager to the Issue

ICB Capital Management Limited

Date of Information Document : December 18, 2007

The issue shall be placed in “N” category

“CONSENT OF THE DHAKA AND CHITTAGONG STOCK EXCHANGE LIMITED

Information Document of the Company may be available at the following addresses:

Company Contact Person Contact Number

Manager To the Issue Contact Person Contact Number

Stock Exchanges Available at Contact Number

Chittagong Stock Exchange Ltd. CSE Library Phone : 88-031-714632-3, 720871-3

Description Number of Shares Paid-up capital (in Tk.)

B. Risk Factors and management perceptions : 8

E. Plan of Operation and discussion on Financial Conditions : 16

F. Directors and Officers : 21

H. Certain Relationships And Related Transactions : 25

J. Options granted to Officers, Directors and Employees of JOCL: 27

K. Transaction with Promoters : 27

L. Tangible assets per share : 27

M. Ownership of the Company’s Securities : 28

N. Description of Securities Outstanding or Being Offered : 28

Q. Credit Rating Report : 61

Details of offloading of shares by the Existing Shareholders As per Regulation 5 of

“Declaration about Listing of Shares with the Stock Exchange(s) :

No. of AGM Date of Hold on Financial Year

B. Risk Factors and Management Perceptions :

g) Non-operating history: There is no history of non-operation in case of JOCL.

Principal products or services of the company:

Market for the products or services of the Company:

Name of associates, subsidiary/related holding company and their core areas of

A) MOBIL JAMUNA LUBRICANTS LIMITED (MJLL):

B) MOBIL JAMUNA FUELS LIMITED (MJFL):

Bhairab Bazar Fatullah Barisal Jhalakati Chandpur Daulatpur

Baghabari Chilmari Balashi Sylhet Rangpur Rajshahi Natore

Shachna Sreemongal Parbatipur

Competitive conditions in the business:

Sources of, and requirement for power, gas and water:

Name of customers who purchase 10% or more of the company’s products:

Number of total employees and number of full-time employees:

Description Number of Employee

All of them are full time employee.

Production/Storage capacity and current utilization:

Plant and Machinery:

Vehicles & Other Rolling Stock :

Railway Siding & Jetty :

Furniture & Fixture :

MT Jamuna & Others :

Description of lease holds property & Expiration date of the lease:

Mortgage or other type of lien on the property owned by the company:

E. Plan of Operation and discussion of Financial Conditions:

Name of projects Estimated Sources of Year of Remarks

Causes of Material changes:

Known trends, events or uncertainties:

Change in the assets used to pay off any liabilities:

Estimated future capital expenditure:

c. Customs duty or other liability