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Annual Report 2013
MJL bangladesh limited
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IntroductionMission, Vision & Values l 05History And Milestones l 06Letter of Transmittal l 07Notice of the 16th Annual General Meeting l 08Corporate Information l 09Membership l 11
Our PerformanceFive Years Financial Highlights l 31Performance Indicators l 32Stock Performance l 34Financial Highlights in 2013 l 35Value Added Statement l 36Market Value Added Statement l 37
About UsCompany Pro ile l 13Board of Directors l 14Brief Pro ile of the Directors l 15Corporate Pro ile l 20Top Management l 23Management Team l 24Plant Personnel l 27Shareholding Structure l 28MJL & AKT Petroleum Company Limited l 29
Products and ServicesProducts and Services l 39Lube Oil Blending Operation l 48Lubricant Development Process l 49MJLBL Laboratory l 51Distribution of Products l 52
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5MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
MISSIONTo support our customers with unsurpassed technical expertise for continuousvalue addition, while ensuring timely delivery maintaining product integrity.
VISIONTo retain market leadership, focusing on long-term business sustainability andselling productivity with consistent growth potential.
OUR VALUES Safety is our top most priority. Our people, including technical expertise, are our assets. Our motto - Our business in life is not to get ahead of others, but to get ahead
of ourselves.
INTRODUCTION
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History and Milestones of MJLBL
Incorporated as a PrivateLimited Company
1998
Established state of the artLube Oil Blending Plant
2003
First Company to exportlubricating oil from Bangladesh
2007
Received Excellence in BusinessPerformance 2009 award from ExxonMobil
2009
Received BMW approval for OmeraLUBE 1 5W 40
2010
Received Outstanding Achievement in GlobalAudit on QIMS and QP&G
2010
Received Excellence in Business Performance2011 award from ExxonMobil
2011
Omera Petroleum Limited, a sister concern of MJLBLsigned an agreement with Parlym International to
install a state-of-the-art LPG bottling plant.
2012
Signed an MOU with Balmer Lawrie tomanufacture high quality steel barrels
2013
Commenced commercialoperation
1999
Received ISO 9001:2000
Certi icaton
2004
Successfully blended high performancelube oil by the name of OMERA
2009
Set up the following plants:- Grease Manufacturing Plant- Transformer Oil processing Unit- Viscosity Index (VI) Improver Plant
2010
Listed on the Dhaka Stock Exchangeand Chittagong Stock Exchange
2011
Procured an AFRAMAX Oil Tanker OmeraQueen with a capacity of 106,547 MT, thelargest of its kind in Bangladesh
2011
Received JASO MA2 approval formotorcycle engine lubricant
2012
Formed a Joint Venture in Myanmarwith AKT Petroleum
2013
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MJL Bangladesh LimitedMobil House, CWS (C) 9, Gulshan-1, Dhaka-1212
Notice is hereby given that the 16th Annual General Meeting of MJL Bangladesh Limited will be held onJune 28, 2014 at 11.00 am at the convention hall of Chittagong Boat Club, East Patenga, Chittagong 4205,to transact the following businesses:
Agenda:
1. Adoption of Directors Report, Auditors Report and Audited Financial Statements for the yearended December 31, 2013.
2. Declaration of Dividend for the year 2013 as recommended by the Board of Directors.
3. Election of Directors.
4. Re - Appointment of Managing Director.
5. Appointment of Auditors and ixation of their remuneration.
6. Miscellaneous, if any, with the permission of the Chair.
Date: June 13, 2014 By order of the Board of Directors
Farhana Afreen Mahmood Company Secretary
Notes:
1. The Record Date is May 08, 2014
2. Shareholders whose name will appear in the Depository Register on the Record date will beeligible to attend the Annual General Meeting and receive dividend approved.
3. Member(s) entitled to attend and vote at the Annual General Meeting may appoint a Proxy toattend and vote on his/her behalf. The proxy Form duly stamped must be deposited at thecompanys Share O ice not later than 48 hours before the meeting.
4. Admission to the meeting will be only on production of the Attendance Slip sent with the noticeas well as veri ication of signature of members(s) and/or proxy holder(s).
Notice of the 16 th Annual General Meeting
N:B. - No gift or bene it in cash or kind shall be offered to the shareholders in the Annual General Meeting in compliance with theBangladesh Securities and Exchange Commissions Circular No.: SEC/CMRRCD/2009 193/154 DATED: 24.10.2013
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9MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
Registered and Corporate OfficeMJL Bangladesh Limited.Mobil House, CWS (C) 9Gulshan-1, Dhaka-1212.Bangladesh.Tel: +88 (02) 8813597 8, 8813661Fax:+88 (02) 9885269
Tejgaon Warehouse & CustomerServices office241, Tejgaon, Dhaka-1208, Bangladesh.Tel: +88 (02) 8813601, 8878651
Fax: +88 (02) 8878660
Chittagong Sales & Marketing andCustomer Services officeHouse # 138/A, Road # 1, CDA R/A, Agrabad,Chittagong- 4100, Bangladesh.Tel: +88 (031) 716997, 714640Fax: +88 (031) 716997
Lube Oil Blending PlantGuptakhal, East PatengaChittagong-4205, Bangladesh.Tel: +88 (031) 2501093, 2500937Fax: +88 (031) 2501094
Bogra Sales & Marketing andCustomer Services OfficeBogra-Dhaka Highway Betgari,Banani, Bogra-5800, BangladeshTel: 051 63933, Fax:051 6590
Sylhet Sales & Marketing andCustomer Services Office
House no: 170, Road no: 5, Block: E,(Ground Floor), Shahjalal Upashahar,Sylhet-3100, BangladeshTel: 0821 2830358
Jessore Warehouse & CustomerServices officeTin Khamber Moar, Dharmatala,Jessore
Rangpur Sales & Marketing andCustomer Services OfficeHouse # 60/1, Road # 1, Mulatol, Pukurpar,Rangpur5400, Bangladesh.Cell: 01730 335598.
Faridpur Sales & Marketing andCustomer Services OfficeHouse # 013, Road # 01, Goalchamot,Faridpur7800, Bangladesh.Tel: 01730 342480
Comilla Sales & Marketing andCustomer Services OfficeHouse No - 845 (2nd Floor), Road No-01,BSCIC Road Comilla3500, Bangladesh.Cell: 01730 336963
Share OfficeHouse 73, Block-K, Suhrawardy AvenueBaridhara, Dhaka-1212, Bangladesh.Tel: +88 (02) 8829510, Cell: 01713436364
AuditorA. Qasem & Co Chartered AccountantsPink City Suites #01 03 (Level-7)Plot # 15, Road # 103Block- CEN(C) Gulshan AvenueDhaka-1212
Legal AdvisorC. T. Karim & PartnersSuite # 7D, Paramount Height (7th Floor)65/2/1 Culvert Road, Purana Paltan,Dhaka1000, Bangladesh
Business Hours9.00 A.M to 6.00 P.M
Corporate Information
INTRODUCTION
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11MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
g Dhaka Stock Exchange Limited Registration: June 22, 2011 Trading: June 26, 2011
g Chittagong Stock Exchange Limited Registration: June 23, 2011 Trading: June 26, 2011
g Bangladesh Association of Publicly Listed Companies
g American Chamber of Commerce in Bangladesh
g The Dhaka Chamber of Commerce & Industry
MEMBERSHIP
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13MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
MJL Bangladesh Limited is a joint venture company between state owned Jamuna Oil Company and ECSecurities Limited (subsidiary of the East Coast Group). The journey of blending world-class lubricants inBangladesh started in 1998 when Mobil Corporation (after the merger known as ExxonMobil Corporation)decided to set up Mobil Jamuna Lubricants Limited in partnership with the state owned Jamuna OilCompany Limited.
MJL Bangladesh Limited envisioned that Bangladesh would be one of the few countries in the region toblend high quality lubricants. MJLBL started its commercial operation on May 20, 1999. The companycommissioned a state- of-the-art Lube Oil Blending Plant (LOBP) - the irst of its kind in the country - in May2003. Since then, the production of this plant and marketing activities of MJL Bangladesh Limited haveexpanded greatly.
As required by ExxonMobils Quality Integrity Management System (QIMS), this zero emission Plant strictlyfollows the quality programs, starting from receiving the base oils from ExxonMobil and additives sourcedfrom other global suppliers as per ExxonMobil recommendation and formulation. The Plant is certi iedby ExxonMobil QP&G and QIMS, and Germinischer Lloyd (GLC) for ISO 9001 2008. A team of highlyquali ied, trained and skilled personnel operate the plant with a warranty of hundred percent productquality assurance.
With a nationwide supply chain to cater the lubricant needs of the country, the Company strictly followsa customer irst policy. Its expert sales and engineering support service personnel work with utmostdedication to identify the right products and services for the customers needs. One can easily ind in themarket a professional array of the quality products blended and marketed by MJL Bangladesh Limited(MJLBL). Where there is engine there is the presence of MJL Bangladesh Limited to give appropriate
lubrication solutions. Thus the lubricants blended and marketed by MJL Bangladesh Limited are beingused in powering the engines touching all corner-stones of modern developments of the country includingmotor vehicles, locomotive engines, river, sea and ocean going vessels, aviation, power and other sectorsof the country.
Being a shining example of Technology Transfer in the country, the company has created direct employmentopportunities for 144 people, 2000 associated jobs, signi icant value addition in lube blending and theavailability of world-class lubricants and greases in Bangladesh.
Company Profile
ABOUT US
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Board of Directors
Chairman Dr. Md Mozammel Haque Khan
Senior Secretary Energy & Mineral Resources Division, Ministry of Power, Energy& Mineral Resources, Government of the Peoples Republic of Bangladesh.
Chairman Omera Fuels Limited
Chairman Titas Gas Transmission & Distribution Company Limited
Directors Alim Uddin Ahmed
Managing Director Jamuna Oil Company Limited
Nominee Director Omera Fuels Limited
Abdul- Muyeed Chowdhury
Former Adviser to the Caretaker Government of Bangladesh
Chairman BRACNet LimitedFounder & CEO Tiger Tours Limited
Nominee Director Omera Fuels Limited
Independent Director Pioneer Insurance Company Ltd.
Independent Director ACI Limited
Independent Director Summit Alliance Port Limited
Md. Aminur Rahman
Ex Secretary Ministry of Commerce, Govt. of Bangladesh
Nominee Director Omera Fuels Limited
Azam J. Chowdhury
Chairman East Coast Group
Nominee Director Omera Fuels Limited
Chairman The Consolidated Tea & Lands Company Bangladesh Limited (Finlay)
Chairman Prime Bank Ltd.
President Bangladesh Ocean Going Ship Owners Association (BOGSOA).
Tanjil Chowdhury
Managing Director East Coast Group
Managing Director Bangladesh Trade Syndicate Limited
President Solar Module Manufacturers Association of Bangladesh (SMMAB)
President Bangladesh Merchant Bankers Association
Director Bangladesh Cricket Board
Independent Director Dr. Mohammad TamimProfessor Petroleum and Mineral Resources Engineering, BUET
Former Advisor to the Caretaker Government of Bangladesh
Member Society of Petroleum Engineers (SPE), Bangladesh Section
Life Fellow The Institute of Engineers, Bangladesh
Mr. Quazi Mohammad Shariful Ala
Managing Director & CEO Delta Brac Housing Finance Corporation Ltd (DBH)
Fellow Institute of Chartered Accountants of Bangladesh
Member Institute of Chartered Accountants in England & Wales
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15MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
DR. MD MOZAMMEL HAQUE KHANCHAIRMAN, BOARD OF DIRECTORS
MD. AMINUR RAHMANDIRECTOR
Dr. Md. Mozammel Haque Khan is Chairman of the Board of Directorsof MJL Bangladesh Limited (MJLBL). He is presently the SeniorSecretary of the Energy & Mineral Resources Division, Ministry of Power,Energy & Mineral Resources, Government of the Peoples Republicof Bangladesh. He is also the Chairman of Titas Gas Transmission& Distribution Company Limited (TGTDCL), Chairman, BangladeshPetroleum Institute (BPI), Chairman, Eastern Re inery Limited (ERL),Chairman, Bangladesh Gas Fields Company Limited (BGFCL). Besidesthose assignments, Dr. Khan represents the Government on the Board
of Directors of Karnaphuli Fertilizer Company Limited (KAFCO). Prior tothis appointment, he was the secretary of IMED, Ministry of Planning,Roads and Railways Division, Ministry of Communications and Ministryof Chittagong Hill Tracts Affairs.He joined the Civil Service of Bangladesh in 1982 and served in manycapacities in the polity of Bangladesh. He earned his Masters degreein Social Science from University of Dhaka and also did a specialdiploma in Demography from Egypt. He obtained his Ph.D degree fromJahangirnagar University.He is actively involved in extra-curricular activities. He is a masterfulpersonality in the ield of scouts. Currently he is an internationalcommissioner of Bangladesh Scouts and National Coordinator, Ticket
to Life project, Asia Paci ic Regional Scouts. Dr. Khan visited more thantwenty ive countries.
Mr. Md. Aminur Rahman is a nominee Director representing EC SecuritiesLimited in the Board of Directors of MJLBL since September 2008. Mr.Rahman joined the Civil Service of Bangladesh in November 1969. Duringhis long service tenure with the Government, he served in a number ofministries at various important level as secretary of the Ministry of Housingand Public works, Secretary-in-Charge of the Ministry of Textile and as
Secretary of the Ministry of Commerce of the Government of Bangladeshtill January 2005. Mr. Rahman obtained a Bachelor of Science degreefrom the University of Dhaka and a Post-graduate Diploma in Economics& Social Studies from the University of Manchester, U.K.
Brief Profile of the Directors
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ABDUL MUYEED CHOWDHURYDIRECTOR
Mr. Abdul-Muyeed Chowdhury is a nominee Director representing ECSecurities Limited in the Board of Directors of MJLBL since December 14,2003. He obtained a Bachelor of Arts (Honors) in History in 1964 and aMaster of Arts (1st class) in Modern History from the University of Dhakain 1965. He also attended University of Tennessee (Knoxville, USA) as aFulbright scholar in 1980 81 and studied Public Administration.
Mr. Chowdhury is also a nominee Director in the Board of Omera FuelsLimited, a sister concern of MJLBL and in the boards of Omera PetroleumLimited and Omera Cylinders Limited; two subsidiaries of MJLBL.
He is currently the Chairman of BRACNet which is a non-listed PublicLimited joint venture ISP company (www.bracnet.net). He is the Founderand CEO of Tiger Tours Limited (www.tigertoursbd.com) which is theonly joint venture tourism company in Bangladesh registered with the
Board of Investment.Mr. Chowdhury is an Independent Director of Pioneer Insurance CompanyLimited, ACI Limited and Summit Alliance Port Limited, three listed publiclimited company of the country in different sectors of the economy.
He is actively associated with social welfare and human developmentactivities through involvement with different institutions such as theSociety for Assistance to Hearing Impaired Children (SAHIC), GoverningBoard of Civil Service College, Bangladesh Youth Enterprise Advice andHelpcentre (BYeah) and the Trustee Board of BRAC University.
Mr. Chowdhury was an Adviser to the Caretaker Government ofBangladesh in 2001 where he was in charge of ive ministries. He was acareer civil servant for 33 years having joined the erstwhile Civil Service ofPakistan (CSP) in 1967. He was a Secretary to the Government in variousministries from 1994 to 2000. His last assignment was as the Secretary ofInternal Resources Division (IRD) of the Ministry of Finance and ex-o icioChairman of the National Board of Revenue (NBR) from 1998 2000 whenhe retired from service.
During his service life he was the Deputy Commissioner of greater Faridpurdistrict (1975 1978), greater Dhaka district (1978 - 1980) and Commissionerof Chittagong Division (1984 1986). He was an Executive Director ofJamuna Multipurpose Bridge Authority and Secretary Jamuna BridgeDivision from 1996 98 when he successfully steered the construction workof Bangabandhu Bridge to completion in record time. His hard work ande icient handling of this mega civil engineering project was recognized
and honoured by the Institution of Civil Engineers (ICE) UK by making hima Fellow of that institution.
Upon retirement from the government service, Mr. Chowdhury joinedworld famous home grown NGO BRAC (www.brac.net) as its ExecutiveDirector and COO and held that position from 2000 to 2006 with a threemonth interregnum for the Caretaker government in 2001. He was alsothe Chairman of SME Foundation, Bangladesh when it was set up by thegovernment as a non-pro it organization under public-private partnershipfor promoting and developing the SME sector in Bangladesh. Mr.Chowdhury was the Vice President of Bangladesh Olympic Association,President of Sports Shooting Federation of Bangladesh. He was a GlobalCouncilor of International Union for Conservation of Nature (IUCN)during 2004 2008.
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17MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
ALIM UDDIN AHMEDDIRECTOR
AZAM J. CHOWDHURYMANAGING DIRECTOR
Mr. Alim Uddin Ahmed is a nominee Director representing Jamuna OilCompany Limited at the Board of MJL Bangladesh Limited. Mr. Ahmedis presently the Managing Director of Jamuna Oil Company Limited, ashareholder of MJL Bangladesh Limited. Mr. Ahmed has over 25 yearsof professional experience in the downstream petroleum industry ofthe country. He joined as an Operation Engineer at Meghna PetroleumLimited in December 1987 and served until March 23, 2013 holding theposition of GM, Marketing. He completed his B.Sc in Engineering (Mech.)from University of Dhaka and completed his M.Sc in Engineering (PMR)from BUET. He attended various seminars in different countries likeSingapore, Kuwait and Bangkok.
Azam J. Chowdhury is an elite industrialist and entrepreneur inBangladesh. He is the Chairman and owner of East Coast Group. Inaddition, he is the Chairman of The Consolidated Tea & Lands CompanyBangladesh Limited (formerly, James Finlay Limited) and also theChairman of Prime Bank Limited, a Private Sector Leading CommercialBank. Mr. Chowdhury is also the Managing Director of MJL Bangladesh
Limited, Distributor of ExxonMobil Corporation in Bangladesh.In the past Mr. Chowdhury has served as the Chairman of GreenDelta Insurance Company Limited (2001 2005), one of the mostsuccessful general insurance companies in Bangladesh. He is alsothe Director of Central Depository Bangladesh Limited (CDBL) and aMember of the Executive Committee of Bangladesh Association ofPublicly listed Companies (BAPLC).
Mr. Chowdhury also served as the Vice President of BangladeshEnergy Companies Association and a Member of Advisory Council ofGovernment of the Peoples Republic of Bangladesh on Power, Energy& Mineral Resources. In recognition to his performance, The HungarianGovernment nominated him as the Honorary Consul of Hungary inBangladesh. Mr. Chowdhury is the President of Bangladesh Ocean GoingShip Owners Association (BOGSOA).
He is a renowned Golfer and achieved laurels several times in thissporting arena.
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TANJIL CHOWDHURYDIRECTOR
DR. MOHAMMAD TAMIMINDEPENDENT DIRECTOR
Tanjil Chowdhury is the Managing Director of East Coast Group, adiversi ied conglomerate with more than 30 years of experience in Oil &Energy sector. He is the Managing Director of Bangladesh Trade SyndicateLimited, representative of TNT International Express in Bangladesh. Mr.Chowdhury is former Board Director and Chairman of the ExecutiveCommittee of Prime Bank Limited (PBL).
Mr. Chowdhury is the President of Bangladesh Merchant Bankers Association (BMBA) and President of Solar Module Manufacturers Association of Bangladesh (SMMAB). He is also Chairman of the PrimeExchange Singapore Pte Ltd, Prime Banks remittance arm in Singapore.He is the Secretary General of Prime Bank Cricket Club, a social initiativeof Prime Bank Foundation (PBF). Mr. Chowdhury has served as Convenorof the Standing Committee on Financial Institutions, Capital Market andServices-2014 and Co-Convenor of the Standing Committee on NationalEnergy Strategy for Private Sector Development-2013, Dhaka Chamber ofCommerce & Industries (DCCI). Mr. Chowdhury is an elected Director andChairman of the Facilities Committee of Bangladesh Cricket Board (BCB)
He is a regular speaker of various private universities. His lecture topicranges from Financial Derivatives and Investment strategy to ShipManagement and Organizational Behavior.
Mr. Chowdhury did his BA (Hons) in Accounting and Finance fromUniversity of West London (formerly TVU) and went on to completingMSc in International Management (Finance), from Kings College London,University of London.
Mr. Chowdhury is an active member of BBC Film Society and KingsCollege Business Society. He is also a keen golfer and has achieved manylaurels in this sporting arena.
Dr. M. Tamim is a Professor of Petroleum and Mineral ResourcesEngineering, BUET, Dhaka. He graduated from BUET in MechanicalEngineering and completed his Masters from IIT, Madras. He obtained hisPh.D. from the University of Alberta, Canada in Petroleum Engineering. He
has research interest in reservoir engineering, petroleum economics andenergy planning; development and application of various numerical andanalytical computer models, reservoir management problems. He alsohas experience in green house gas (GHG) mitigation, energy e iciencyimprovement and energy related environmental remedies. Dr. Tamim hassupervised several M.Sc. Students and published a number of papers innational and international journals.
He worked at different capacities relating energy policy formulation,planning and regulation with all governments since 1995. He took aone year leave from his teaching job to manage the Power and EnergyMinistry in 2008 during the caretaker government period as StateMinister. Dr. Tamim is a member and the founding Chairperson of Societyof Petroleum Engineers (SPE), Bangladesh Section and a life Fellow of theInstitute of Engineers, Bangladesh (IEB).
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19MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
QUAZI MOHAMMAD SHARIFUL ALAINDEPENDENT DIRECTOR
Mr. Quazi Mohammad Shariful Ala is an Independent Director of MJLBangladesh Limited. Mr. Ala is currently the Managing Director & CEOof Delta Brac Housing Finance Corporation Ltd (DBH). DBH is one ofthe leading inancial institutions in Bangladesh with assets in excess ofUSD 410 million. Mr. Ala graduated with a BSc (Economics) irst classhonours degree from the London School of Economics (LSE), Universityof London in 1981. He worked in the London o ice of Price Waterhousefor seven years and quali ied as a member of the Institute of CharteredAccountants in England & Wales in 1984. Whilst working at PriceWaterhouse, he had exposure to several large multinationals, includingShell Oil and JP Morgan. He is also a fellow of the Institute of CharteredAccountants of Bangladesh. Prior to joining DBH, he was the FinanceDirector of Green Delta Insurance Company Limited, one of the leadinginsurance groups in Bangladesh and also corporate sponsor of DBH.Mr. Ala has more than 30 years of corporate management experience,primarily in the inancial services sector, both in Bangladesh and in theUnited Kingdom. He has served as a non-executive Director on theBoards of several prominent companies, including BRAC Bank Limited.Mr. Ala has led the executive management team of DBH as the ManagingDirector & CEO, since 1997.
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Corporate Profile
AUDIT COMMITTEE
Board of Directors
Audit Committee Executive Committee
Chairman Dr. Mohammad Tamim
Member Secretary Farhana Afreen Mahmood
Members Md. Aminur Rahman
Alim Uddin Ahmed
Tanjil Chowdhury
MANAGEMENT COMMITTEE OF MJLBLChairman Azam J. Chowdhury
Member Secretary Naymun Nahar
Members Kh. Md. Sanaul Haque
M. Mukul Hossain
Mohammad Tipu Sultan FCA
Engr. Salah Uddin Ahmed
Farhana Afreen Mahmood
Maj. Gen. Nizam Ahmed, PSC (Rtd)
Asif Malik
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21MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
EXECUTIVE COMMITTEE OF OMERA
PETROLEUM LIMITED (SUBSIDIARY)Chairman Md. Aminur Rahman
Member Secretary Farhana Afreen Mahmood
Members Dr. Mohammad Tamim
Alim Uddin Ahmed
Tanjil Chowdhury
EXECUTIVE COMMITTEE OF OMERACYLINDERS LIMITED (SUBSIDIARY)
Chairman Md. Aminur Rahman
Member Secretary Farhana Afreen Mahmood
Members Dr. Mohammad Tamim
Alim Uddin Ahmed
Tanjil Chowdhury
ABOUT US
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23MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
Top ManagementManaging Director Azam J. Chowdhury
Chief Executive O icer Kh. Md. Sanaul Haque
Executive Director andChief Engineer
M. Mukul Hossain
Chief Financial O icer Mohammad Tipu Sultan FCA
Head of Internal Audit Md. Obaidul Islam Khan ACA
Deputy General Manager Engr. Salah Uddin Ahmed
Assistant GeneralManager, Logistics &
Order Ful illmentSeakh Awan Hoque
Head of Human
Resources & CompanySecretary Farhana Afreen Mahmood
OUR PEOPLE
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From the left (sittinng)S. M. Shahed HossenManager- VAT & Tax
Md. Ahsan KabirHead of Marketing
Md. RasheduzzamanManager, Industrial Lubricants
Naymun NaharManager, Human Resources
Mohammad Mizanur Rahman FCAFinance Controller
Farhana Afreen MahmoodHead of Human Resources & Company Secretary
Kh. Md. Sanaul HaqueChief Executive O icer
Mohammad Tipu Sultan FCAChief Financial O icer
M. Mukul HossainExecutive Director (Technical) and Chief Engineer
Fatema JahraAssistant Manager-Brand
Md. Obaidul Islam Khan ACAHead of Internal Audit
Sabreena SadeqManager-Brand & Market Communication
Syed Atiqur RahmanAccounts Controller
Kajal Kumar AddyaManager, Financial Control
Management Team
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25MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
From the left (standing)
Md. Ariful KarimManager-Automotive Lubricants
Monsur AhmedAssistant Manager-Brand
A.B.M. Mostakur RahmanNational Sales Manager-Omera
Abdullah Hel AzizAssistant Manager - Logistics & Order Ful illment
Shafquat Mahmud FahmiHead of IT
Sheikh Md. Jabed HasanManager-Technical, IT
Md. Monirul IslamManager - Customer Services
Qudrat-E KhudaAssistant Manager-Field Marketing
Major Md. Sayeed Iqbal (retd.)Manager - HR / Admin.
Abu Sadat KhanAssistant Manager-Export
Mohammad Rokibul KabirAssistant Company Secretary
Mohammad Zahidul IslamAssistant Manager-Sales & Marketing
Ashraful AlamTerritory Manager-IL
Shehabun SaaqebManager-Business Analysis & Planning
Tofayel AhamedAssistant Manager-Internal Audit
Shafaat Mahmud FahmiAssistant Manager-Business Systems
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Plant Personnel
SittingFrom Left
Name Designation Department
1 S.M.Sharfuddin Ahmad Mahi P&P Planner PLANNING & PROCUREMENT
2 Md. Shariful Islam Mollah Senior Chemist QA / QC LAB
3 Kamrul Islam Deputy Chief Chemist QA / QC LAB
4 Md. Ahsan Ullah Manager- Administration HR & ADMINISTRATION
5 Md. Jahangir Alam Manager Warehouse WAREHOUSE
6 Jyotirmay Sarker Manager B & F BLENDING & FILLING
7 Salah Uddin Ahmed Deputy General Manager & In-charge of Plant
8 Abu Zafar Md. Aurangazeb Plant Manager ENGINEERING & MAINTENANCE
9 Akramul Haque Manager-Lab QA / QC LAB
10 Md. Anwar Sadat Asstt. Manager B & F BLENDING & FILLING
11 Mir Md. Mahtab Sarwar Sr. Chemist QA / QC LAB
12 Iffat Binte Iftikar Executive-Admin HR & ADMINISTRATION
StandingFrom Left
Name Designation Department
13 Zahibul Huq Chowdhury Executive- Vat & Tax VAT & TAX14 Md. Imranul Haque Assistant Chemist QA / QC LAB
15 Md. Ariful Karim Executive-Warehouse WAREHOUSE
16 Md. Abdul Jabbar Maintenance Engineer ENGINEERING & MAINTENANCE
17 Md. Arifuddin QA Engineer BLENDING & FILLING
18 Md. Farhad Hossain Sr. Production Engineer (Grease) BLENDING & FILLING
19 Abdulla Al Mamun Senior Chemist QA / QC LAB
20 Shihab Uddin Sr. Maintenance Engineer (Electrical) ENGINEERING & MAINTENANCE
21 Deloar Ali Siddique Senior Executive-HR & Admin HR & ADMINISTRATION
22 Md. Mamunur Rashid Sr. Maintenance Engineer (Mechanical) ENGINEERING & MAINTENANCE
23 Zahangir M. Rahman Maintenance Executive ENGINEERING & MAINTENANCE
24 Sahedul Alam Sharif Assistant Production Engineer BLENDING & FILLING
27
OUR PEOPLE
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Name of Shareholders Number of Shares % of total Shareholding
EC Securities Limited 139,153,450 58.352%
Jamuna Oil Company Ltd 46,393,300 19.454%
M/s Parkesine Products Ltd 5,290 0.002%
Mr. Azam J. Chowdhury 5,290 0.002%
Ms. Marina Yasmin Chowdhury 5,290 0.002%
Mr. Tanjil Chowdhury 5,290 0.002%
Ms. Dilruba Chowdhury 5,290 0.002%
Others 52,900,000 22.183%
Total 238,473,200 100.00%
SHAREHOLDING STRUCTURE
AT THE YEAR END 2013
58%20%
22%
EC Securities Limited
Jamuna Oil Company Ltd.
Others
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MJL BANGLADESH LIMITED l ANNUAL REPORT 2013 29
MJLBL has become the irst local company in the industry to explore the Myanmar market by setting up ajoint venture company to expand the business.
The Myanmar parliament has passed foreign investment law clearing the way for overseas companiesto invest in Myanmar. MJLBL had to compete with companies from Singapore, Thailand, Malaysia andHongkong for marketing and distributing Mobil brand lubricants in Myanmar as a partner of ExxonMobil.Winning the bid, MJLBL formed a joint venture (JV) with one of the leading trading company in Myanmar,Aung Kyun Thar Co. Ltd. (AKT), to distribute Mobil brand lubricants in Myanmar market. With an initialinvestment of USD 1 million, the JV, MJL & AKT Petroleum Company Ltd., formally started marketing Mobillubricants with a grand launching ceremony held on July 2, 2013 in Yangon.
As per the agreement of incorporation MJLBL holds 51 percent share and AKT holds the rest. MJLBL isthe irst company to get permission from the central bank of Bangladesh (Bangladesh Bank) to investin Myanmar in the downstream petroleum business. The JV will source the Mobil brand products fromExxonMobil and market & distribute in Myanmar market. Relying on the long heritage and expertise ofMJLBL in lubricant industry together with the relentless knowledge of AKT on Myanmar market, the JVis destined to be an unique example of a successful foreign investment made by Bangladeshi company.
MJL & AKT Petroleum Ltd: A joint venture
of MJLBL and AKT Petroleum in Myanmar
ABOUT US
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31MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
Figure in Tk million unless speci ied
Operating Performance 2013 2012 2011 2010 2009
Operating Revenue 7,188.02 6,994.32 6,017.28 3,898.05 3,238.08
Operating Pro it 1,021.02 878.95 709.41 714.63 645.68
Pro it Before Tax 986.81 867.67 932.04 681.9 655.51
Net Pro it After Tax 721.89 651.21 636.78 508.33 343.25
Earnings Per Share (EPS) 3.03 2.73 2.67 2.7 2.45
Statement of FinancialPosition
2013 2012 2011 2010 2009
Current Assets 5,220.10 6,112.73 6,431.57 4,174.96 1,928.56
Total Assets 12,106.27 11,311.83 11,409.00 5,089.39 2,781.41
Property, Plant andEquipment
4,804.50 4,490.06 4,332.06 717.81 729.58
Net Current Assets 877.24 2,758.60 2,069.76 2,447.07 781.59
Long Term Liabilities 97.81 502.13 - - -
Current Liabilities 4,342.86 3,354.13 4,361.81 1,727.89 1,146.97
Total Liabilities 4,768.17 4,099.43 4,536.77 1,838.27 1,257.82
Shareholders Fund 7,338.09 7,212.39 6,872.23 3,251.13 1,523.59
Pro itability and Other
Financial Ratios2013 2012 2011 2010 2009
Gross Pro it Ratio 20.64% 18.97% 18.79% 25.64% 25.95%
Earning before Interest,Depreciation and Tax
1,391.82 1,307.72 1,411.99 804.22 745.29
Price Earning Ratio (times) 24.81 29.19 37.41
Current Ratio 1.20 1.82 1.47 2.42 1.68
Return on Capital Employed 0.16 0.15 0.19 0.23 0.43
Debt Equity Ratio 0.41 0.35 0.48 0.37 0.05
Five Years Financial Highlights
OUR PERFORMANCE
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Performance Indicators
Current Ratio
2013 2012 2011 2010 2009
1 . 2 0
1 . 8 2
1 . 4 7
2 . 4
2
1 . 6 8
Quick Ratio
2013 2012 2011 2010 2009
0 . 8
6
1 . 3 1
1 . 0 3
1 . 8 1
0 . 8
9
Earnings Per Share
2013 2012 2011 2010 2009
3 . 0
3
2 . 7
3
2 . 6
7
2 . 7
0
2 . 4
5
Gross Margin Ratio
2013 2012 2011 2010 2009
2 0
. 6 4
1 8
. 9 7
1 8
. 7 9
2 5
. 6 4
2 5
. 9 5
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33MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
Share Holders Equity
2013 2012 2011 2010 2009
7 , 3
3 8
. 0 9
7 , 2
1 2
. 3 9
6 , 8
7 2
. 2 3
3 , 2
5 1 . 1 3
1 , 5
2 3
. 5 9
Return on Equity
2013 2012 2011 2010 2009
9 . 8
4
9 . 0
3
9 . 2
7
1 5
. 6 4
2 2
. 5 3
Net Current Assets
2013 2012 2011 2010 2009
8 7 7
. 2 4
2 , 7
5 8
. 6 0
2 , 0
6 9
. 7 6
2 , 4
4 7
. 0 7
7 8 1 . 5 9
Return on Assets
2013 2012 2011 2010 2009
5 . 9
6
5 . 7
6
5 . 5
8
9 . 9
9
1 2
. 3 0
OUR PERFORMANCE
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STOCK PERFORMANCE
0 1 - 0 1 - 2 0 1 3
0 8
- 0 1 - 2 0 1 3
1 5 - 0
1 - 2 0 1 3
2 2
- 0 1 - 2 0 1 3
2 9
- 0 1 - 2 0 1 3
0 5
- 0 2
- 2 0 1 3
1 2
- 0 2
- 2 0 1 3
1 9
- 0 2
- 2 0 1 3
2 7
- 0 2
- 2 0 1 3
0 6
- 0 3
- 2 0 1 3
1 3
- 0 3
- 2 0 1 3
2 4
- 0 3
- 2 0 1 3
0 1 - 0 4
- 2 0 1 3
0 8
- 0 4
- 2 0 1 3
1 6
- 0 4
- 2 0 1 3
2 4
- 0 4
- 2 0 1 3
0 2
- 0 5
- 2 0 1 3
0 9
- 0 5
- 2 0 1 3
1 6
- 0 5
- 2 0 1 3
2 6
- 0 5
- 2 0 1 3
0 2
- 0 6
- 2 0 1 3
0 9
- 0 6
- 2 0 1 3
1 6
- 0 6
- 2 0 1 3
2 3
- 0 6
- 2 0 1 3
0 2
- 0 7
- 2 0 1 3
0 9
- 0 7
- 2 0 1 3
1 6
- 0 7
- 2 0 1 3
2 3
- 0 7
- 2 0 1 3
3 0
- 0 7
- 2 0 1 3
1 2 - 0
8 - 2
0 1 3
2 0
- 0 8
- 2 0 1 3
2 7
- 0 8
- 2 0 1 3
0 4
- 0 9
- 2 0 1 3
1 1 - 0
9 - 2
0 1 3
1 8 - 0
9 - 2
0 1 3
2 5
- 0 9
- 2 0 1 3
0 2
- 1 0
- 2 0 1 3
0 9
- 1 0
- 2 0 1 3
2 3
- 1 0
- 2 0 1 3
3 0
- 1 0
- 2 0 1 3
0 6
- 1 1 - 2 0 1 3
1 3 - 1
1 - 2 0 1 3
2 0
- 1 1 - 2 0 1 3
2 7
- 1 1 - 2 0 1 3
0 4
- 1 2
- 2 0 1 3
1 1 - 1
2 - 2
0 1 3
1 9
- 1 2
- 2 0 1 3
2 9
- 1 2
- 2 0 1 3
Price Movement Over the Year Closing Price
60.00
65.00
70.00
75.00
80.00
85.00
90.00
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The value added statement provides a detailed account of total value addition and the distribution of the valuecreated by the organization. MJLBL contributes positively to socio-economic development by empoweringemployees through the payment of salaries and allowance; by assisting the regulatory capacities throughpaying taxes and of course keeping in mind companys continuous expansion and growth.
MJL Bangladesh Limited(Formerly Mobil Jamuna Lubricants Limited)
Value Added Statement
2013 2012 Growth(Taka) % (Taka) % %
Value Addition
Revenue 7,188,021,345 6,994,323,232 2.77%Cost of Revenue 5,471,203,711 5,605,090,069 -2.39%
Value Added Manufacturing 1,716,817,634 1,389,233,163 23.58%Operation ExpensesLess Employees Remuneration &Depreciation
560,660,571 428,121,715 30.96%
1,156,157,063 961,111,448 20.29%Add: Other Income 228,589,096 300,426,229 -23.91%
Gross Value Added 1,384,746,158 100% 1,261,537,676 100% 9.77%
Distribution of Value Addition
Employees as Remuneration 255,706,314 18.47% 266,060,517 21.09% -3.89%Government as Income Tax 180,611,470 13.04% 216,456,392 17.16% -16.56%Depreciation 142,231,950 10.27% 127,807,369 10.13% 11.29%Value retained in Business 806,196,424 58.22% 651,213,398 51.62% 23.80%
1,384,746,158 100% 1,261,537,676 100% 9.77%
Number of employees at the endof the year
144 147
Value added per employee 9,616,293 8,581,889
VALUE ADDED STATEMENT
19%
13%
10%
58%
Value Addition 2013 Value Addition 2012
21%
17%
10%
52%
Employees asRemuneration
Government asIncome Tax
Depreciation
Value retainedin Business
Employees asRemuneration
Government asIncome Tax
Depreciation
Value retainedin Business
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37MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
Market value added statement re lects the companys performance evaluated by the market through theshare price of the company. This amount is derived from the difference between market capitalization andbook value of the shares outstanding. Market value added is one of the market indicators of value creation.The greater market value added indicates the company has created substantial wealth for the shareholders.A negative market value added means that the value of managements actions and investments are less thanthe value of the capital contributed to the company by the capital market.
Market Value Added statement as of December 31, 2013 and 2012
Particulars 2013 2012
Face value per share 10 10
Market value per share 75.1 79.7
Number of shares outstanding 238,473,200 238,473,200
Total market capitalization 17,909,337,320.00 19,006,314,040
Book value of paid up capital 2,384,732,000.00 2,384,732,000
Market value added 15,524,605,320.00 16,621,582,040
MARKET VALUE ADDED STATEMENT
2,385 2,385
1 5
, 5 2 5
1 6
, 6 2 2
1 7
, 9 0 9
1 9
, 0 0 6
2013 2012
Market Value Added
Market Value AddedBook Value of paid up capital
Total Market CapitalizationValue in Millions (BDT)
OUR PERFORMANCE
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39MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
MJLBL has a state-of-art Lube Oil Blending Plant (LOBP) in which a wide range of lubricants are producedand distributed all over Bangladesh since 2003. Different types and qualities of lubricants are made asper diversi ied demand in the lubricant market. MJLBL also imports some inished products directly. Thecompany has more than Twenty (20) types of product lines serving wide range of customers from differentsectors of the country under Mobil, Omera and other brand.
Mobil Brand Products:A. Automotive Passenger Vehicle Lubricants
Two types of Automotive Passenger Vehicle Lubricants are marketed by MJLBL. Major Lubricants underthis product line are as follows:
Synthetic Oil: The worlds leading Synthetic Engine Oils have unsurpassed engine protection withexcellent resistance to High Temperatures, Low-Temperature performance, Cleaning properties and LowFuel Consumption as well as greatly increase the engine overall life. The followings are the products ofSynthetic Oils.
g Mobil 1 5W 50
g Mobil 1 0W 40
Synthetic Motorcycle Oil: Mobil 1 Racing 4T 10W 40 is designed primarily for on-road, high-performance,4-cycle sport bikes; however, it may be used in other types of on and off-road 4-cycle motorcyclesespecially where a 10W 40 viscosity grade is speci ied. Mobil 1 Racing 4T 10W 40 motorcycle oil meets orexceeds the requirements of: API SM & JASO MA
g Mobil 1 Racing 4T 10W 40
Mineral Oil: High quality premium Mineral Engine Oils are designed to provide high level of performanceand protection under severe operating conditions. They provide superior engine protection againstharmful deposits, sludge & varnish, corrosion and have very good cleaning properties under a variety ofdriving conditions. The following are the products of Mineral Oil.
g Mobil Super 1000 20W 50
g Mobil Special 20W 50
g Mobil Super 2T
g Mobil Super 4T 20W 50
g Mobil Outboard Plus
B. Automotive Commercial Vehicle Lubricants:
Heavy duty diesel engine oil is to meet all required speci ications for Bus, Truck, Covered Van, Earth MovingEquipment, Diesel Generator, etc. Major lubricants under this product line are as follows:
Synthetic Oil: The worlds most leading Synthetic Engine oil has unsurpassed engine protection, superiorresistance to high temperatures, great Low-Temperature performance, excellent cleaning properties, lowfuel consumption as well as increased the overall engine life of all diesel engines. The name of the productunder synthetic oil is as follows:
g Mobil Delvac 1 5W 40
Mineral Oil: The most advanced chemistry of Diesel Engine Oil provides outstanding performance bothin the most modern, demanding low-emission diesel engines and older diesel engines operating on low
PRINCIPAL PRODUCTS AND SERVICES
PRODUCT & SERVICE
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or high sulfur fuels. Lube oils blended with high performance base stocks and using progressive additivetechnology systems provide superior control of oil thickening due to soot build-up and high temperaturesas well as outstanding resistance to oxidation, corrosion, and high temperature deposits.
The followings are the products under Mineral Oil category.
g Mobil Delvac MX 15W 40
g Mobil Diesel Special 20W 50
g Mobil Delvac 1350
g Mobil Delvac 1340
g Mobil Delvac 1330
g Mobil Hydraulic 10W
g Esso DIOL 13 RD 40
C. Automotive Gear & Transmission FluidMajor Lubricants under this product line are:
Synthetic Oil: The Synthetic base oil composition enable excellent performance even in the severest ofoperating conditions. They offer outstanding gear shifting and power transfer performance. Syntheticoils have resistance against thermal breakdown at high operating temperatures, while still providingoutstanding performance as they improve overall transmission durability and cleanliness. The followingsare the products of synthetic Oil under automotive gear & transmission luid category:
g Mobil 1 Synthetic Gear
g Mobil 1 Synthetic ATF
Mineral Oil: These oils are formulated from high-quality base oil combined with special additivetechnology systems including VI improvers, anti-oxidants, and Anti-foam properties providing smooth andcontrolled friction/wear where extreme pressures and shock loadings are expected as well as increasesthe equipment life. The followings are the products of mineral Oil under automotive gear & transmissionluid category:
g Mobil ATF 3309
g Mobil ATF 220
g Mobilube HD 80W 90
g Mobilube HD 85W 140
g Mobilube GX 80W 90
g Mobilube GX 140
D. Brake Oil
The extra high performance hydraulic Brake Fluid is for use in automotive disc, drum and anti-skidbrake systems and clutch systems. The Potential Bene its of this product is Consistent and Safe BrakePerformance under severe braking pressure, Rubber Seal compatibility Reduces leakage and loss of luidto a minimum level. It provides excellent Corrosion Protection and extends life and reliability of brakesystem components. Major Lubricant under this product line is:
g Mobil Brake Fluid DOT 4
E. Industrial Gear and Circulating Oil
Heavy-Duty Industrial Oil series are extra high performance gear oil, which are formulated from high quality
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41MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
Synthetic or Mineral base oil and advance extreme pressure additive technology. Major Lubricants underthis product line are as follows:
Synthetic Oil: The Mobil Synthetic lubricants are recognized and appreciated around the world for theirunique invention and outstanding performances. Advantages and Potential Bene its of these productsare- Extend equipment high temperature operating capability, Minimizes sludge and deposits for trouble-free operation and long ilter life. Balanced additive combination provides excellent performance in termsof rust and corrosion prevention, demulsibility, foam control & air release performance ensuring smoothoperation in a wide range of industrial applications and reduced over all operating costs.
g Mobil Glygoyle 460
g Mobil Glygoyle 220
g Mobil SHC 624
g Mobil SHC 626
g Mobil SHC 629
g Mobil SHC 630
g Mobil SHC 632
g Mobil SHC 634
g Mobil SHC 636
g Mobil SHC 639
g Mobilgear SHC XMP Series
Mineral Oil: The extra high performance mineral base gear oil having out-standing extreme pressurecharacteristics and load-carrying properties are intended for use in all types of enclosed gear drives withcirculation or splash lubrication systems. The potential bene its of these products are enhanced gearwear protection from micro-pitting, reduced debris denting from generated wear particles, outstanding
compatibility with a range of seal materials, excellent resistance to oil oxidation and thermal degradationas well as increased the equipment life. Major Lubricants under this product line are as follows:
g Mobilgear 600 XP 68
g Mobilgear 600 XP 100
g Mobilgear 600 XP 150
g Mobilgear 600 XP 220
g Mobilgear 600 XP 320
g Mobilgear 600 XP 460
g Mobilgear 600 XP 680
g Mobil Vacuoline 148
F. Turbine & Circulating Oil
Synthetic Oil: Mobil SHC 800 Series turbine oil is designed speci ically to meet the needs of the mostsevere industrial gas turbine applications. The potential feature of these products under the series isoutstanding high Thermal/Oxidative Stability and Deposit Control, very good resistance to foaming andgood Air Release property, ensures long oil life as well as reduces maintenance cost. Major lubricantsunder this series are as follows:
g Mobil SHC 800 Series
Mineral Oil: Mobil DTE brands mineral-based oil has been the choice for turbine operators worldwidefor more than one hundred years. These products meet or exceed most major turbine equipment
PRODUCT & SERVICE
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builder speci ications and industry speci ications. These products also provide the ultimate lexibility tothe operator because they can be used in all turbine types: steam, gas, geared, hydro-turbines. MajorLubricants under this product line are as follows:
g Mobil DTE 800 series
g Mobil DTE 700 series
g Mobil DTE Oil Light
g Mobil DTE Oil Medium
g Mobil DTE Oil Heavy Medium
g Mobil DTE Oil Heavy
g Mobil Vacuoline 500 series
G. Hydraulic Oil
Major Lubricants under this product line are:Marine Applications: These oils are constructed from selected base oil and a proprietary additivetechnology to provide well balanced performance in a wide range of applications. The products exhibitexceptional oxidation and thermal stability allowing long oil life and minimized deposit formation in severehydraulic systems using high pressure and high output pumps with better demulsibility properties. Theinnovative ultra keep clean performance protects critical hydraulic system components from malfunction,such as tight tolerance servo and proportional valves in many modern hydraulic systems.
g Mobil DTE 500 Series (Synthetic Oil)
g Mobil DTE 10 Excel 15
g Mobil DTE 10 Excel 32
g Mobil DTE 10 Excel 46
g Mobil DTE 10 Excel 68
g Mobil DTE 10 Excel 100
g Mobil DTE 10 Excel 150
Industrial Applications: These oils are formulated with high quality base oils and a super-stabilized additivetechnology that neutralizes the formation of corrosive materials. They are designed to work with systemsoperating under severe conditions where high levels of anti-wear and ilm strength protection are needed.
g Mobil DTE 24
g Mobil DTE 25
g Mobil DTE 26
g Mobil DTE 27
g Mobil Nuto H 32
g Mobil Nuto H 46
g Mobil Nuto H 68
g Mobil Nuto H 100
g Mobil Nuto H 150
H. Textiles/Garments Machinery Oils
These oils are premium performance products primarily designed for the lubrication of knitting & highspeed spindles in textile machines. They are also used in some critical hydraulic, circulation systems and
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K. Refrigeration Compressor Oil
The high performance Synthetic oil and Naphthenic base narrow-cut mineral oil primarily intended for usein refrigeration compressors. They have a low pour point and excellent luidity at very low temperatures.Major Lubricants under this product line are:
g Mobil Gargoyle Arctic 226E (Synthetic Oil)
g Mobil EAL Arctic 32
g Mobil EAL Arctic 68
g Mobil Gargoyle Arctic 300
g Mobil Gargoyle Arctic 155
L. Other Industrial Oils
There are various types of other oils blended with high quality base oils & proprietary additive technologyfor intended use in various ields of machinery application; such as high temperature operated chainoil, electric Transformer Insulating oil, Thermic Fluids and Metal Cutting oil. Major Lubricants under thisproduct line are as follows:
g Mobil Synthetic Oven Lube 1090 (Synthetic Oil)
g Mobil Pyrolube 830 (Synthetic Oil)
g Mobiltherm 605
g Mobilcut 100
M. Marine Lubricants
The premium, extra high performance high & medium TBN engine oils are designed for use in the most
severe residual-fuelled medium-speed diesel applications found in marine and stationary power industries.These diesel engine oils have been specially formulated to provide outstanding residual fuel compatibilitycharacteristics for excellent engine cleanliness, especially in crankcase, camshaft areas, piston ring beltand under piston crown. They provide excellent high temperature oxidation and thermal stability, lowvolatility, and high load carrying properties and corrosion protection.
g Mobilgard 412
g Mobilgard 312
g Mobilgard M 330
g Mobilgard M 340
g Mobilgard M 430
g Mobilgard M 440 g Mobilgard M 50
g Mobilgard 560 VS
g Mobilgard 300
g Mobil Sterntube Oil
N. Greases
Greases are called magicians lubricants and are in the form of semi solid or sold natures. Greases are usedwhere the oil will fall out, amount of oil release needs to be controlled and equipment access is di icult.
Major greases are as follows:
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Mineral Oil: High quality premium Mineral Engine Oil is designed to provide high level of performance andprotection under severe operating conditions. They provide superior engine protection against harmfuldeposits, sludge & varnish, corrosion and have very good cleaning properties under a variety of drivingconditions. The followings are the products of Mineral Oils.
g Omera Heavy Duty Extra 40
g Omera Heavy Duty Extra 50
g Omera HD 40
g Omera HD 50
B. Automotive CNG Engine Oil
The premium leet engine oil is formulated to provide reliable protection for passenger vehicles, trucks andbuses using Compressed Natural Gas (CNG) or Lique ied Natural Gas (LNG). This engine oil is formulatedfrom high quality base stocks and a balanced additive system under proprietary formulation. This advanced
low ash formulation provides excellent oxidation, nitration, and thermal stability to minimize combustionchamber ash deposits and provide long oil drain interval. The name of the product under automotive CNGengine oil category
g Omera CNG Special 20W 50
C. Motor Cycle Engine Oil
Omera Motorcycle Oil 4T is blended under proprietary formulation from highly re ined base oils andadvanced additive technology to provide good engine cleanliness, good protection against wear &corrosion as well as long life. Omera Motorcycle Oil 4T is recommended for lubrication of all types of fourstroke motorcycle engines where an API SL and JASO MA2 level performances are recommended.
g Omera Motor Cycle oil 4T 10W 30
g Omera Motor Cycle oil 4T 20W 40
Omera Motorcycle Oil 4T meets or exceeds the following industry speci ications-
JASO: MA2
API: SL
D. Greases
The greases are formulated with high quality mineral base oil and selective additive technology to meetor exceed the required demand or speci ications for most of the equipment manufactures. These greasesare used in moderate to higher operating temperatures.
g Omera-Grease MP
g Omera -LITH EP 00
g Omera-LITH EP 0
g Omera-LITH EP 1
g Omera-LITH EP 2
g Omera-LITH EP 3
g Omera-PLEX XHP 2
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47MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
E. Transformer Oil
Omera Transformer Oil is a high quality uninhibited insulation oil blended from highly re ined wax freenaphthenic base oil having very good performance as a dielectric and coolant. It has very low temperatureluidity, high lash point and good chemical stability.
Performance:
Omera Transformer Oil meets the performance level of
g Class 1
g BS 148/98
g IEC 60296/2003
Other Brand Products:
A. Antifreeze/Coolant
This product is suitable for cooling systems of different cars, buses, trucks etc. The Concentrated antifreezeformulation is hard water compatible and can be mixed with tap water before illing into the coolingsystem. The potential bene it of this product is to help reduce scale deposits and corrosion in the engine.
g Vel-Cool Hi-Tech
B. Cylinder/Gear Oil
Indpro Cylinder Oil Mineral 1000 is premium quality oil designed for use in steam cylinder and enclosedgear applications operation under heavy loads, slow speeds or high temperatures which demand a highviscosity lubricant. This oil is recommended for a wide range of applications which include steam cylinder,
worm gears, bearings and couplings which are compatible with its very high viscosity.
It also suitable for use with superheated steam above 160C where quick separation from condensate isrequired.
g Indpro Cylinder Oil Mineral 1000
C. Metal Rolling Coolant
Vel-Rolls 26 is blended with high quality base oil & proprietary additive technology for intended use as acold rolling coolant. This product exhibits exceptional oxidation and high thermal stability allowing long oillife and minimized deposit formation and exceptional cooling ability.
g Vel- Roll 26
PRODUCT & SERVICE
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base oil + additives = lubricating oil
Base oil isimported fromExxonMobiland sent to thebase stock tanksfor storage.
1Base oil ImportThe basestocks are takenin for qualitycheck. Theproducts areexamined,inspected andquality isreviewed in orderto move on tothe next stage
of In-LineBlending.
2Base Stock storage
Varieties of BaseStocks andAdditives arefeed into theIn-Line BlendingSystem inmeasuredquantity toproduce desiredgrade of LubeOil according tospecific formula-tion.
3In-Line BlendingThe blendedproducts aresent to the Labfor formulationcontrol andquality check,which is carriedout under theguidelines setby ExxonMobil.
4Laboratory
The blendedlubricants aresent to anautomated fillingline wherelubricants arefilled and sealedin various highquality durablecontainers.
5FillingPackagedlubricants aredistributed tovarious parts ofBangladesh,awaitingdelivery tocustomers.
6Storing & Delivery
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LUBRICATING DEVELOPMENT PROCESS
PRODUCT & SERVICE
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51MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
Over the last decade MJLBL has been serving the nation by blending world class ExxonMobil brandedlubricating oil for the countrys automotive, industrial and marine sectors that meet and exceed equipmentspeci ications and consumer needs. To achieve such global standard, MJLBL set up a world class laboratoryat its Lube Oil Blending Plant, Chittagong in 2003. This laboratory is fully operational in accordance toExxonMobil standard guidelines- Quality Practices & Guidelines, Product Integrity Management Systemas well as ISO 9001:2008.
The primary scope of the MJLBL Laboratory is to provide quality testing of different grade of lube oilswhich are blended in the Lube Oil Blending Plant of MJLBL. Appropriate testing equipment is important tothe success of analytical activities conducted in the laboratory. MJLBL laboratory uses highly sophisticated
and branded testing instruments from world class instrument suppliers such as Koehler, Perkinelmer,Agillent, Metrohm, Anton Paar, Cannon etc which are capable of providing accurate & reliable test resultswithin required detection limit.
MJLBL Laboratory has established a state of the art quality control system. Quality control is a failuredetection system that uses a testing technique to identify errors or laws in products and tests the endproducts at speci ied intervals. Using Five Quality Control Tools (Calibration Program, MaintenanceProgram, Statistical Quality Control Program, Test Method Assessment Program & Pro iciency TestingProgram) MJLBL laboratory test the products whether they are within required speci ication or not.
The Laboratory also participates in the ASTM Inter Laboratory Cross Checking Testing Program whichensures not only the accuracy of the equipment but also the competency level of the chemists for
conducting different tests of lube oils. The laboratory is also well equipped to provide trouble shooting testservices of machine lubricants. Laboratory personnel are ICML Certi ied Level II MLA on Used Oil Analysis.MJLBL laboratory has proved its performance in achieving global standard by outstanding audit scoring inseveral external and internal assessments. The management is dedicated to improve the effectiveness ofthe quality management system and quality assurance system through the use of the quality policy, qualityobjectives, audit results, analysis of data, corrective and preventive actions, key performance indicators,and management review.
MJLBL Laboratory:
precision, Accuracy & Reliability
PRODUCT & SERVICE
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MJLBL has made main distribution agreement with Jamuna Oil Company Limited (JOCL), which is apetroleum marketing company of Bangladesh Petroleum Corporation (BPC). Under this agreement, MJLBLhas been using the large infrastructural facilities of JOCL. JOCL has got a countrywide extensive networkof 16 depots in addition to its main installation at Guptakhal in Chittagong, 431 Filling Stations, 852 Agentsand 181 Packed Point Dealers. All sorts of industrial, automotive and aviation lubricants are supplied toJOCLs main installation (MI) at Chittagong and subsequently JOCL distributes products throughout thecountry. Major state owned industries and power plants are supplied through JOCL. Other than JOCL,MJLBL has distributed its products through wholesalers and directly to the industrial buyers;
Currently the company appointed 82 wholesalers to sell the products throughout the country except tothe JOCLs customers. Moreover, MJLBL has supplied directly to more than 1000 industrial buyers. Owndistribution infrastructure of MJLBL includes main warehouse in Chittagong, one warehouse in Dhakaand one warehouse in Bogra. MJLBLs total distribution pie is evenly distributed i.e. each party (JOCL,wholesalers and industrial buyers) are getting about 30%-35% of total distribution. Sales are made againstA/C Payee cheques for JOCL and against Demand Draft or Payment order for wholesalers and industrialbuyers so there is no scope of irrecoverable debts.
DISTRIBUTION OF PRODUCTS
Plant at Chittagong
MJBLs Warehouses/
Sales Centre
Dhaka
Reseller
Customer
Prime Distributor
(JOCL)
Filling Stationof JOCL
Packed PointDealer
Agents
Chittagong
Bogra
Jessore
Sylhet
Faridpur
Rangpur
Comilla
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53MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
OUR PERFORMANCE
Maintaining an enduring relationship with allstakeholders is a prerequisite for the success of a
business. MJL Bangladesh Ltd. pays utmost
importance to this fact. Throughout its business journey it has been successful in maintaining anexcellent relationship with its shareholders,management, customers, suppliers, financiers,
government agencies and the community. Thisremarkable relationship has helped
MJLBL in developing a strongmarket image.
Relationship
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It is indeed a great pleasure for me to be here with you in the 16th Annual General Meeting of MJL BangladeshLimited. On behalf of the Board of Directors and myself, I would like to express my profound gratitude to allof you for your continuous support and guidance in achieving superior performance of the company.
2013 proved to be a challenging year for the economy of Bangladesh. Political strikes, unresolved negotiationswith donor agencies for major infrastructure projects & halting of the GSP facilities resulted in the slowdownof the manufacturing and the service industry. Despite these circumstances the GDP growth rate remainedover 6.0% which is quite respectable.
On the back of a turbulent economy, MJLBL achieved signi icant results in terms of revenue and pro it, acombined result of strong customer loyalty, unparalleled quality of our products and dedicated efforts ofMJLBL employees. While most industries found it challenging to keep pace with changing situations, MJLBLsucceeded in meeting most challenges with high colors.
The lubricant industry in Bangladesh can be divided into three sectors which are Industrial lubricants (IL),commercial vehicle lubricants (CVL) and private vehicle lubricants (PVL). MJLBL offers lubricants to all threesectors 25% of the total demand for lubricants in Bangladesh during 2013 was for Industrial lubricants whichwere used in the energy sector, manufacturing and processing industry. Commercial vehicle lubricantaccounted for 46% and Private vehicle lubricants accounted for 29% of the total demand for lubricants.
MJLBL has a comprehensive line of high-performance lubricants including industrial oils, extreme pressuregreases, gear oils, synthetic lubricants, engine oils and many other lubricant and reliability solutions. In 2013IL constituted for 49% of MJLBL lubricant sales, while CVL and PVL sales constituted for 31% and 20% oftotal sales respectively.
MJLBL generated total sales of BDT 7,188 Million an almost 3% increase from 2012. 46% of the revenue wasgenerated from the trading unit while 43.38% was generated from the manufacturing unit. The rest wasgenerated from the oil tanker. Mobil remains the number one lubricant in the Bangladesh market and also
holds the largest market share.
From the Desk of Chairman
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1. Dear Shareholders
On behalf of the Board of Directors, it gives meimmense pleasure to welcome you to the 16 th Annual General Meeting of MJL Bangladesh Ltd(MJLBL). We have passed a challenging year in aiercely competitive market. Despite that we havemanaged to overcome all challenges and the yearhas ended on an optimistic note. I am pleased topresent with this report the Audited Statement ofFinancial Position, Statement of ComprehensiveIncome, Statement of Cash Flows and Statement
of Changes in Equity for the year ended December2013 along with the Auditors Report thereon foryour valued consideration
2. World Lubricant Market Outlook
World lubricant demand during 2013 was 41.35Million Metric tons. This is likely to increase by2.3% and reach to 42.3 million metric tons in2014. Although growth will be modest in volumeterms, value gains will be more substantial asmore expensive high performances lubricants
are substituted for lower valued ones. Some ofthe key players in the lubricant industry includeExxonMobil, Royal Dutch Shell, British Petroleum,Castrol, Chevron, Total and Fuchs.
Advances will be the strongest in the developingAsian countries due to ongoing rapidindustrialization as well as rising car ownershiprates, particularly in Asia region. These trends willalso favor growth in Africa, the Middle East andLatin American region.
In contrast, greater availability of high performancelubricants, increased global competition andincreasingly stringent environmental regulationswill restrain advances or contribute to negativegrowth in lubricant demand in the more developedcountries of Western Europe, the United States andCanada, as well as in the European Union membercountries of Eastern Europe and in Japan.
Despite the downturn in the global motor vehiclemarket during the last few years, motor vehiclelubricant demand will continue to expandthroughout the upcoming period once aneconomic recovery begins to take hold.
3. Lubricant Market in Bangladesh
The lubricant market has been growing steadily forthe last couple of years driven by strong demandfrom the automotive and industrial sector. Steadygrowth in economy has led to increase in vehicles,for personal and commercial usage. The fastgrowing industrial sector which includes the energysector, manufacturing and processing sector isalso accelerating the demand for lubricants.
The lubricants market is estimated to be worthTk 2,400 crore, which was Tk 1,200 crore iveyears ago. Annual domestic consumptionnow stands at around 100,000 tonnes, withthe market growing at almost 2.5% a year,which is on par with India but behind China.Private Vehicle lubricants and commercial vehiclelubricants combined account for 75% of the totallubricant consumption in 2013. Industrial lubricants
account for 25% of the total demand for lubricants.
DIRECTORS REPORT TO THE SHAREHOLD
AsiaPacific
NorthAmerica
CentralEastern
WesternEurope
LatinAmerica
Africa MiddleEast
Lubricant Demand by Region
4 1 %
2 0 %
9 % 1 1
% 8 %
5 % 6
%
Global Lubricant Demand(Million Metric Tons)
2012 2013 2014 2015
4 0
. 5 5
4 1 . 3 5
4 2
. 3
4 3
. 2 7
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57MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
After independence in 1971 until 2000, only thestate owned oil companies were allowed to import,
blend or distribute lubricants in Bangladesh, andduring that period 65 percent of all lubricantscontained no additives. In 2001, the marketing oflubricants was liberalized. Blending, importing, anddistribution of non-additive treated engine oils werebanned. Minimum API standard was set at SC/CC.Since then, more than 70 brands of lubricants haveentered the Bangladesh market. The liberalizationof the lubricant market encouraged commissioningof 11 privately owned blending plants.
MJLBL leads the lubricants market with the having
the single largest market share of 30%. MJLBL isclosely followed by British Petroleum at 11%, Frenchbrand Total at 5% and Shell, Castrol and Caltexwith 2% each. Omera a newly introduced brand ofLubricants produced by MJLBL has been widelyaccepted by consumers. Within a short span oftime, Omera has captured a 2% market share and isshowing great potential for growth. The remaining46% share of the market is held by over 70 brands.
4. Industry Outlook and Sector WisePerformance (2014)
2014 offers potential for the growth of theLubricant industry. The growth is likely to be fueledby demands from two key sectors, Industrial andautomotive.
The industrial sector is likely to grow at 2.5%which will lead to more productions and greaterconsumption of lubricants. The industrial sectorwas which suffered a major setback in 2013 dueto unrest, is expected to make expansions andfurther investments in 2014. The automotivesector is also likely to grow, despite high Interestrates on car loans & high import duties on vehicle
imports. Taking these factors into consideration it isexpected that the automotive sector will grow andfuel the need for lubricants.
54% of all lubricants available to consumers in themarket is produced and supplied by renownedlocal and foreign manufacturers. The remaining46% of the lubricants is serviced by small brands,offering low-grade often adulterated lubricants atlow price. The availability of low priced adulteratedlubricants threatens the Lubricants industry whenconsumers mistakenly purchase sub standardproducts. The damage caused to machinery forusing substandard materials is immeasurable.MJLBL holds free awareness sessions and productdemonstrations to inform consumers on waysof identifying adulterated products as well asinforming them about the bene its of using highperformance goods.
5. Source of Availability of Raw Materials,Power Water, Gas & Principle Suppliers
The major raw materials of MJLBL are imported,mainly from Singapore, China, Thailand, Malaysia,India, Switzerland and the Netherlands. Suppliersare evaluated periodically on supply reliability,quality and prices etc. It is always focused that
they meet the benchmark in terms of quality andreliability with the help of supplier appraisals andtrack record. Key suppliers include ExxonMobil,Afton Chemical India Pvt. Ltd, HYRAX OIL SDNBHD, Varian, Metrohm etc. There are also two localsuppliers namely East Coast Trading (Pvt) Limitedand EC Distribution Limited.
Source of electricity supply is Bangladesh PowerDevelopment Board. In addition, there are twohigh capacity and well equipped stand by dieselgenerators of 450 KVA each, which are capable ofmeeting full load requirement in case of emergency.
It is installed at plant site. Water supply is ensuredfrom Chittagong WASA. Except for ordinary usein o ice, the company does not require gas formanufacturing operation in any lines.
6. Business Performance
MJLBLs inancial performance in 2013 wasnoteworthy, at a time when the overall economyfaced di icult challenges, topped by a stagnantglobal economy. Revenue for 2013 surpassedrevenue of 2012 by 2.77% reaching BDT 7,188 Million.This has been achieved by paying close attention to
Lubricant Market in Bangladesh
2 9 %
2 5 %
TotalILCVLPVL
1 0 0 %
4 6 %
MESSAGE
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59MJL BANGLADESH LIMITED l ANNUAL REPORT 2013
is a good Indication of MJLBLs inancial capacity toservice its outstanding debt and a reassurance for
all lenders of MJLBL.Earnings per share during 2013 were BDT 3.03 pershare and increase from BDT 2.73 per share in 2012.Market Capitalization was (as on 31 December) BDT17,909.33 Million on the Dhaka stock exchange.
7. Related Party Transaction
A statement of all related party transactions isshown in page no 135 of this annual report.
8. Venturing into Foreign MarketsOmera Lubricants Solutions, a premier gradelubricant manufactured by MJLBL is being exportedto Nepal, Singapore, Malaysia & Brunei. Underproprietary technology with selective base oilsand additives supplied by global oil majors, OmeraLubricants has proven to be a very competitive andtechnologically advanced product in the local aswell as foreign markets.
Omera Lubricants has been approved as a safe andhigh quality product by all regulatory bodies and
met all standards necessary. International marketfor lubricants is a huge segment of the worldseconomic activity particularly in Asia and offershuge potential for exporting Omear Lubricants.Based on the success of current exports MJLBL islooking forward to establishing a strong footholdin other growing markets with superior technologyand vibrant marketing.
9. Omera LUBE 1, irst Bangladeshi brandto participate in Junior World Rallychampionship.
MJL Bangladesh Limited is the proud sponsor of
the promising young Norwegian Driver MariusAsen in Junior WRC (World Rally Championship)Omera Lube is the 1 st Bangladeshi Brand to activelyparticipate in an International Motorsport. Team
Omera Finished the Norwegian season withthree wins in a row and Sliver in the NorwegianChampionship with a Car run on Omera LUBE 1,an advanced performance engine oil formulatedunder leading edge Synthetic Technology. Theroads in this epic Motorsport adventure rangedfrom the ice and snow of Scandinavia, in the sti lingheat of Greece and the shifting gravel surface ofNorway. Omera Lube 1 has proved to withstandall sorts of extreme conditions and perform undertough conditions.
10. Parent, Subsidiary and Associatecompanies
MJL Bangladesh is a Public Limited company listedin the Dhaka and Chittagong stock exchange.The major shareholders of the company are ECsecurities Limited owning 58.35% shares andJamuna Oil company owning 19.45% shares. Therest of the shares is owned by the general public.
MJL Bangladesh ltd. is the parent company ofOmera Petroleum Ltd (OPL) & Omera Cylinders Ltd
(OCL). OPL has undertaken a project to install astate-of- the- art LPG terminal with import, storage,bottling & marketing facilities. The Main Terminal islocated at Mongla and three satellite stations arelocated at Bogra (Sherpur), Dhaka (Ghorashal) andChittagong (Mireshharai) respectively.
The company is expected to meet the growingdemand for LP Gas, especially mitigating existingfuel crisis in the country with its plant capacity of100,000 TON per annum and e icient distributionchannels. The project will be expected to be
operational by July 2014. OCL was established withstate of the art facilities to manufacture cylindersfor the LP gas plant.
11. Corporate and Financial ReportingFramework
The members of the board in accordance with theBangladesh Securities and Exchange CommissionsNoti ication no: SEC/CMRRCD/2006 158/134/Admin/44dated 07 August 2012, con irmcompliance with the inancial reporting framework
for the following:
Return on Equity
2013 2012
9 . 8
4 %
9 . 0 3 %
MESSAGE
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a. The inancial statements prepared by themanagement of MJLBL, present fairly its stateof affairs, the result of its operations, cash lowsand changes in equity.
b. Proper books of account of the issuer companyhave been maintained.
c. Appropriate accounting policies have beenconsistently applied in preparation of theinancial statements and that the accountingestimates are based on reasonable andprudent judgment.
d. International Accounting Standards (IAS)/Bangladesh Accounting Standards (BAS)/International Financial reporting Standards(IFRS)/ Bangladesh Financial ReportingStandards, as applicable in Bangladesh, havebeen followed in preparation of the inancialstatements and any departure there from hasbeen adequately disclosed.
e. The system of internal control is sound indesign and has been effectively implementedand monitored.
f. There are no signi icant doubts upon the issuercompanys ability as going concern.
12. Risk FactorDifferent risk factors and management perceptionabout the mitigation is shown in page no 85 of thisannual report.
13. Key Operating and Financial Data oflast ive Years
Key operating and inancial data of last ive years isshown in page no 31 of this annual report.
14. Utilization of IPO FundMJLBL has collected BDT 4,600 Million throughinitial public offering. 38% of the total funds werespent on purchasing an oil tanker. 32% of themoney was spent in establishing the Lique iedPetroleum Gas (LPG) Terminal Plant. The remaining30% of the funds were used for procuring Land forthe Corporate Head O ice Building.
15. Dividend
Pro it after tax during the year stood at BDT 721.88
Million against BDT 651.21 Million in the previousyear indicating an increase of 10.85% in after taxpro it. The Board of Directors of MJL BangladeshLimited has recommended 25% cash dividend for
the calendar year 2013
16. Contribution to the National Exchequer:
MJLBL regularly pays its corporate tax, withholdingtax and VAT on time. We have deposited BDT 340.99million to government exchequer as withholdingtax and corporate tax in the year 2013. We havealso deposited BDT 1,530.07 million as VAT in theyear 2013.
17. Shareholding PatternThe Shareholding Pattern of the company at the endof year is shown in page no 28 of this annual report.
18. Board Meetings and Attendance
During the year ended on December 31, 2013, sevenmeetings of the Board of Directors were held. Theattendance of the Directors is shown in page no 71of this annual report.
19. Audit Committee
During the year ended on December 31, 2013, fourmeetings of the Audit Committee were held. Theattendance of the members is shown in page no 71of this annual report.
20. Going Concern
The inancial statements of the company havebeen prepared on a going concern basis, whichcontemplates the realization of assets and the
satisfaction of liabilities in the normal course ofbusiness. The Board of Directors of MJLBL has madeannual assessment about whether there exists anymaterial uncertainty which may cast signi icant doubtupon the companys ability to continue as a goingconcern and con irms the entity as a going concern.
21. Human Resources
Human Resources of the company are contributingindividually as well as collectively to move the goaland objective forward. In MJLBL, our aim is to employ
the right people, develop their capacities, manage
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their life cycle and reward their performance. Asa market leader in lubricant industry, MJLBL hasfocused on establishing a dynamic HR process in linewith ExxonMobils practices worldwide for meeting
its human resource needs. Based on the current andfuture need of human resources, MJLBL has plannedto ill the required position either by using internalcandidates from the own talent pool or by hiringcompetent and skilled people from external sourcesthrough a transparent recruitment process.
MJLBL is committed to maintain a healthy and fairwork environment, free from discrimination basedon gender, age, national origin, religion, maritalstatus, or any other basis not prohibited by law. Inshort, the aim is to maintain the place of work andsurrounding conditions in a manner that permitsemployees to work to the highest effectivenessand to their full potentials. At MJLBL, we alwaysappreciate effective internal communicationand free low of ideas, open door policy, fairness,commitment, teamwork and highest standards ofprofessional excellence and integrity.
Development program for human resources areimplemented in three stages. First, training needsfor a particular employee are assessed by thedepartmental heads, then training programs areconducted in in-house and outside the organization,
inally assessment is done for the trained employeehow he or she utilizes the training in the workplace.In addition to compensation package, a number ofpolicies are formulated for welfare of employeesin the form of incentive/ performance bonus,medical allowances, subsidized lunch, contributoryprovident fund and employee gratuity scheme. AKPI based performance management processhas been introduced to measure and recognizeemployee performance. At end of 2013, the totalhuman resource strengths were 144.
22. Directors Remuneration
Directors are not entitled to any remunerationother than attending meeting of the Board and itsCommittee. The amount of remuneration paid todirectors is also disclosed in page no 133 of thisannual