padma oil company limited of financial position and statement of profit or loss

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Padma Oil Company Limited of Financial Position and Statement of profit or loss. Submitted To: Sifat Kamal, Assistant Professor

Submitted By: Samiur Rahman Sajal ID: UG01-34-13-044

Date of Submission: 20.03.2016

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Padma Oil Company Limited of Financial Position and Statement of profit or loss.

IntroductIntroductory Partory Part

1 Background 2 POCL Vision

3 POCL Mission

4 Strategic Priorities

5 POCL Products

6 Pattern of shareholding as on 30 June, 2015

7 Five years Performance of Financial Position

8 Five years Performance of Profitability

9 Statement of Financial Position

10 Statement of Profit or Loss and Other Comprehensive Income

https://en.wikipedia.org/wiki/Steve_Jobs#Background

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Letter of Transmittal

March 20, 2016

Sifat KamalAssistant Professor,Department of Business StudiesState University of Bangladesh

Subject: Letter of Transmittal for Submitting the Report

Dear Madam,

I am submitting my Term Paper and would like to take the opportunity to thank you for your guidance and supervision in its completion. I completed my Term Paper for Report on the "Padma Oil Company Limited of Financial Position and Statement of profit or loss". I have tried my best to organize all the necessary information related to the topic and present relevant facts and figures. The report has its due limitations and conducting the assignment was not without difficulties. Please accept my apology for the same. However, with your guidance, it was completed in the best possible manner.

Your kind appreciation will glorify my endeavor.

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Background

Padma Oil Company Limited (POCL) is not only the biggest but also the oldest with its

antecedents stretching well back to the colonial period of British-India. Its ancestral enterprise

Rangoon Oil Company establishes petroleum business in this part of the middle of nineteenth

century.

POCL Vision

To ensure energy security in the country by uninterrupted supply of quality petroleum product at

government’s fixed price. To strengthen the supply of environmental-friendly and excellence

agrochemical products in order to increase the nation-wide agricultural productions.

POCL Mission

To ensure adequate supply of fuels through purchasing, stocking & distribution of petroleum

products through out the country with organized management system.

Strategic Priority

To have sustained, broaden and improve range of products and service in all areas of Bangladesh

with the aim to add increased value to shareholder’s investment and offer highest possible

benefit to our customer.

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POCL Products

Jet A-1 Octane Petrol Kerosene Diesel LDO JBO Furnace Oil Lub Oil SBP MTT LPG Bitumen

Pattern of shareholding as on 30 June, 2015:

(NO) Name Of the shareholder Nos. of share Percentage of share

A. Bangladesh Petroleum Corporation 49455662 50.35B. Public Institution 6615357 6.73C. Investment Corporation of Bangladesh 1599870 1.63D. Private Institution 15925834 16.21E. Individuals 24636027 25.08

Total= 98232750 100.00

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Five years Performance of Financial Position

Taka in Lac

Particulars 2014-15 2013-14 2012-13 2011-12 2010-11Fixed assets 15944.70 12896.06 9814.74 6978.75 5112.47Currents assets 774271.09 633314.88 575622.59 489015.62 361292.85Cash at bank balances 171932.58 256024.04 206412.67 238896.48 188147.85Total assets 962,148.37 902234.98 791850.00 734890.85 554553.17Liabilities 879782.22 829325.09 732175.43 691586.39 522201.93Equity 82366.15 72909.89 59674.57 43304.46 32351.24Total liabilities 962148.37 902234.98 791850.00 734890.85 554553.17Net assets per share 83.85 74.22 66.82 65.46 73.36

Note: At a glance before five years Padma Oil Company limited in 2010 fixed assets 5112.47lac, but after five years in 2015 has fixed assets 15944.70 lac. We also fine big changes in total assets in 2010 is 554553.17lac but after five years it has increased to 962148.37lac in 2015.On the other hand there are changes in their liabilities and equity size. Finally POCL’s net assets per share in 2010 (73.36) and after five years it has increased 83.85.

Five years Performance of Profitability

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Taka in Lac

Particulars 2014-15 2013-14 2012-13 2011-12 2010-11Operating earning On petroleum products 18097.13 18382.54 15032.87 15201.17 15020.12 On agro-chemicals 268.89 182.18 117.94 329.00 140.28Other income 22108.66 24477.15 26433.73 16841.56 8968.00Total earnings 40474.68 43041.87 41348.66 35041.21 24128.40Overheads 12175.78 11977.03 9151.14 8402.50 10687.09Interest-through BPC 1129.66 1145.27 1065.43 1117.44 1128.19Contribution to WPPF 1358.46 1495.98 1556.60 1142.59 615.66Total expenses 14663.90 14618.28 11773.17 10662.53 12430.94Profit before income tax 25810.78 28423.59 29575.49 21709.20 11697.46Income tax 6531.25 7151.04 8905.63 7080.98 2931.47Profit after income tax 19279.53 21272.55 20669.86 14628.22 8765.99Earning per share 19.63 21.66 23.15 22.11 19.88

Note: The table says that POCL’s total earning in 2010 was 24128.40Lac but after five years it has increased to 40474.68Lac in 2015.On the other hand after paying the interest with contribution to WPPF their total expenses are 14663.90.Finally POCL’s earning per share in 2010 was 19.88, but unfortunately it decreased to 19.63 in 2015.

Padma Oil Company Limited

Statement of Financial Position

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As at June 2015

Taka in’000As at June 30

ASSETS 2015 2014Non-current assetsProperty, Plant and equipment 1206,147 944,347Capital work-in-process 388323 345259

1594470 1289606Current assetsInventories 15518134 10178030Account receivable 14615708 14397106Due from affiliated companies 46868800 38462379Advances, deposits and pre-payments 424467 293973Cash and Cash equivalents 17193258 25602404

94620367 88933892TOTAL ASSETS 96214837 90223498

Note: If we conduct a comparative analysis of POCL’s balance sheet between year 2014 and 2015 then we can see that their property, plant and equipment and capital work in process is more in 2015 than 2014.On the other hand POCL’s current assets, inventories , advances pre-payment, cash and cash equivalents etc. in 2015are better than 2014.

So their total asset has increased 599139000 TK in 2015 than 2014.

Taka in’000

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As at June 30EQUITY AND LIABILITIES 2015 2014Shareholders’ equityShare capital 982327 982327Retained earnings 7254288 6308662Total equity 8236615 7290989Non-current liabilities:Deferred tax liabilities 146350 111100Current liabilitiesAccount payable 12181462 1525168Supplies and expenses payable 10024704 9633929Due to affiliated companies 63716154 68122033Other liabilities 1624487 3366285Dividend payable 112649 53527Income tax payable 172416 120467Total liabilities 87831872 82821409

87978222 82932509TOTAL EQUITY AND LIABILIES 96214837 902234598Net Asset Value (NAV) per share Tk. 83.85 Tk.74.22

Note: In this situation POCL’s total equity has increased to 945626000Tk. in 2015 than 2014. On the other hand we can see a huge difference in account payable, Dividend payable, other liabilities.

So their total liability has increased 599139000 TK in 2015 than 2014.

Finally we can see that the net asset value per share which was 74.22 in 2014 has become 83.85 in 2015.

Padma Oil Company Limited

Statement of Profit or Loss and Other Comprehensive Income

For the year ended 30 June 2015

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Taka in’000As at June 30

2015 2014

Gross earnings on petroleum products 1838881 1856713Direct cost on petroleum products:Packing Charges 25962 29288Handing Charges 8994 5302

(34956) (34590)1803925 1822123

Net Operational gain 5788 16131Net earnings on petroleum products 1809713 1838254

Operating expenses:Administrative, selling and distribution expenses 1145475 1121406Financial expenses 72103 76297Interest expense through BPC 112966 114527

1330544 1312230479169 526024

Operating Profit on PetroleumOther operating income-petroleum trade 624019 161721Operating profit on Agro-chemical trading 26889 18218

650908 179939Total Operating Profit 1130076 705963Non-operating income 1586848 2285994Net profit before WPPF 2716924 2991957Contribution to Workers’ Profits Participation and Welfare Fund

(135846) (149598)

Net profit before income tax 2581078 2842359

Provision for income tax:Current year tax 617875 670684Deferred tax 35250 44420

(653125) (715104)Net profit after tax transferred to Retained earnings 1927953 2127255Earnings per share (EPS-basic) Tk. 19.63 Tk.21.66

Note: If we conduct a comparative analysis of POCL’s of Profit or Loss and Other Comprehensive Income in Gross earnings on petroleum products have decreased 17832000Tk in 2015 than 2014.AS a result the Net earnings on petroleum products has come down to 285401000Tk.in 2015.

Elsewhere we can see that in operating expenses the Administrative, selling and distribution expenses is higher and financial expenses, Interest expense through BPC are lower than 2014.

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But POCL’s other income trade has increased to 470969000Tk in 2015 where their main trade product could not earn much profit.

Because in 2015 the income of POCL is low so the income tax rate is also lower than before.

At the end of the period POCL’s net profit after tax transferred to Retained earnings in 2015 is 1927953 which were 2127255 in 2014.As a result their earing per share dropped to 19.63 from 21.66 in 2015.

We can see a big change in Earnings per share which is 2.03 per share.

“THE END”

padma oil company limited of financial position and statement of profit or loss

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