Megna Petrolium and Jumuna Oil Company Ratio Analysis

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OBJECTIVE OF THE PROJECT

The purpose and objectives of this project is to fully analyze the financial data of the two companies: Meghna Petroleum Limited (Main Company) and Jamuna Oil Company. (Competitor). In addition, to calculate their Liquidity, Asset management, Debt, profitability, and market value ratio and compare the two companies by explaining the implications of different ratios. This would enable us to conclude upon whom is in a better position. In addition, in this project we will look at the DuPont value, which will help us to see whether the company is fully utilizing its Total asset turnover, Equity multiplier, and profit margin all together.

COMPANY OVERVIEW

Meghna Petroleum Limited (Target Company):

Meghna Petroleum Limited was registered as a private limited company on 27th December, 1977 under the company’s Act 1913 (Amended 1994). The Company took over all the physical possession of the fixed assets of the erstwhile Meghna Petroleum Marketing Company Limited (MPMCL) and Padma Petroleum Limited (PPL) on March 31, 1978 & started its business operations since then. MPMCL inherited from the world wide reputed oil company Esso Eastern Inc., USA which on the other hand is the successor of Standard Vacuum Oil Co. Ltd. of America. Esso Eastern Inc. started its business operation in 1956 in Bangladesh.

The Government acquired Esso Eastern Inc. in 1975 through Esso Acquisition Ordinance and the company was renamed as MPMCL. The other company Padma Petroleum Ltd. was the successor of Dawood Petroleum Ltd. which was established in 1968. The Government by Presidential Order No. 16 took over the ownership of the company in 1972.

After formation of Bangladesh Petroleum Corporation (BPC) in the year 1976, the assets and liability of the company were transferred and handed over to BPC as per BPC ordinance on LXXXVIII. Since then Meghna Petroleum Limited has been functioning as a subsidiary of BPC. As per decision taken by the Government and BPC the company was converted into a Public Limited Company on 29th May, 2007.

Jamuna Oil Company(Competitor):

In 1964 Pakistan National Oil Limited (PNOL), the maiden National Oil Company of the then Pakistan was established as a private limited company. The company started functioning with an authorized capital of Tk.2.00 crore. After the Independence of Bangladesh in 1971 the Government of the Peoples Republic of Bangladesh acquired the assets and liabilities of Pakistan National Oil Limited by virtue of Bangladesh Abandoned Property (control, Management & Disposal) Order, 1972 (P. O. No. 16 of 1972) and the Company was renamed as Bangladesh National Oil Limited. The Company has been finally renamed as Jamuna Oil Company Limited (JOCL) by the Government on 13 January, 1973. At that time the company was operated by an adhoc committee called Oil Companies Advisory Committee (OCAC) under Petrobangla, constitute by the notification No. 21 m-4/76 (NR) dated 21-4-73, M/O. Natural Resources.

Jamuna Oil Company Limited was registered with the registrar of Joint Stock Companies & Firms as fully Government owned Private Limited Company on 12 March, 1975 under Companies Act 1913 with authorized capital of Tk. 10.00 crore and paid-up capital of Tk. 5.00 crore. Subsequently, in the year 1976 the assets and liabilities of the Company were transferred & handed over to Bangladesh Petroleum Corporation (BPC) as per schedule stated in clause 31(c) of BPC Ordinance No. LXXXVIII (published in Bangladesh Gazette extra ordinary on 13 November, 1976). Since then Jamuna Oil Company Limited has been functioning as a Subsidiary of BPC. On 1 January, 1986 all assets and liabilities of Indo-Burmah Petroleum Company Limited (IBPCL) were transferred to the Company.

Purpose Of Choosing Meghna Petroleum Limited (MPL):

Meghna Petroleum Limited operates from it’s headquarter at Chittagong through its 4 (Four) Regional offices located at Chittagong, Dhaka,...
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