PAGE
An Internship Report
On
Overall Activities of
Padma Oil Limited
Internship Report On
Overall Activities of
Padma Oil Limited.(Internship report is Submitted For the Partial Fulfillment of the Degree of Bachelor of Business of Administration with a Major in Finance)
Submitted To:
Mr.Abul Khair
Managing Director
PADMA Oil Company Limited
Strand Road, Sadarghat
Chittagong.
Prepared By
Name: Tanu Sree DebiRoll No. 9950660Registration No. 9999245Program: BBA
Semester: 8th
Major in Finance
NCC NeuralLalkhan Bazar
Chittagong, Bangladesh
Date of submission:
16-06-2014Letter Of transmittal
Date:
To
Mr.Abul Khair
Managing Director
PADMA Oil Company Limited
Strand Road, Sadarghat
Chittagong.
Sub: Submission of Internship report titled Overall Activities of Padma Limited.Dear Madam
With the respect, I state the fact for your kind consideration that, I have to perform 2 month internship program due to BBA course outline to acquire practical knowledge about the present trend of Padma Oil Limited.
You will be interested to note that POL is a subsidiary of Bangladesh Petroleum corporation which marketing the Petroleum Oil and Lubricants. I try to focus the problems, prospects and performances of my company in this report, with my all efforts.
May, I therefore, pray and hope that you would kindly accept my Internship report errors and omission should be considered and oblige thereby.
Sincerely yours
Name:
( )
Name: Tanu Sree Debi
Roll No. 9950660
Registration No. 9999245
Program: BBA
Semester: 8th
Major in Finance
Acknowledgement
At first all praise and indebt ness to the Almighty Allah, the Lord of Glory and Honor and his Friend our Prophet Mohammad (SM), for all the blessing showers upon me to make such a success.
In order to present the Internship Report to the Instructor of our department I proceeded to the Meghna Petroleum Limited with the recommendation letter from the department. Gradually I obtained the permission from the authority and started the Internship program with, Meghna Petroleum Limited, Agrabad, Head Office, Chittagong.
I would like to offer a special thanks to my supervisor and the authority of NCC Neural.
During my internship program I attended the office regularly in the office time in order to collect data and to observe the every day operating system of the Meghna Petroleum Limited.
It beings a part of academic study with practical implication. This study has been initiated to explore the General activities, Account, ERL, finance, audit, HRM activities of Meghna Petroleum Limited.
In this regard, I would like thank my Managing Director, Mr. Md. Abul Khair, DGM (Operation), Mr. Md. Alim Uddin, DGM (ER) Mr. Md. Masudur Rahman, DGM (Finance) Mr. Md. Kamrul Hossain, AGM (Finance) Mr. Kazi Monowar Dilder, AGM (ER) Mr. Md. Akther Hossain.
At last numerous thanks to almighty Allah for pouring his blessing in every moment.
Executive Summary
Meghna Petroleum is a subsidiary of Bangladesh Petroleum Corporation (BPC), had been serving the nation for the last four decades through marketing of petroleum product. The aim of the company is to earn profit through consumer satisfaction & to deliver the product at the right time, at the right place & right quantity. MPL do not produce my product they receive the product from ERL as per share. Meghna Petroleum Limited has sales activities in whole country divided in 4 regions. These are (1) Chittagong region (2) Dhaka region (3) Bogra Region and (4) Khulna region.
The price of the Bulk product are set by the government, they receive a margin for it. They offer three incentive program in a year to increase the sales. They transport their product through river, railway, road. They do business through dealer, agent, and customer. They sells in cash, They also credit sales army, navy, defence, PDB, Bangladesh Railway. They sells the product through pay n slip, DD, In MPL there are 2 worker union organizations for collective bargaining with management for different aspect for the benefit of the workers, namely- Meghna Petroleum Sramic Karmachari Union, Registration No-B-1743 & Meghna Petroleum Sramic Union, Registration No-B- 1833.
During 2009-2010, companys net sales of all kinds of Petroleum Products (including Lubricating Oils) were 11.96 Lac Metric Tons of sales value of Tk. 646386.35 lac. Market share participation of MPL was 35.23 in Fuel, LPG & Bitumen and 47.10 (7523 MT) in Lubricants (among the three oil marketing companies). During the year the countries overall petroleum product has been increased by 3.50 Luc M.Tons.
Table of ContentContentPage no
Title Pagei
Cover Pageii
Letter of Transmittal iii
Acknowledge iv
Executive Summaryv
Chapter One
1.0 Introduction
1.2 Objectives of the study:
1.3 Scope of the study
1.4 methodology of the study
1.5 Limitations of the study 1-4
Chapter Two
2.1 Meghna at a Glance
2.2 Historical Background of MPL
2.3 Vision of the MPL
2.4 Company philosophy
2.5 Company Objectives
2.6 Company Goals
2.7 Company Rules & Regulations 5-12
Chapter Three
3.0 Function of ERD
3.1 Introduction of ERD
3.2 ORGANOGRAM OF EMPLOYER RELATIONS DEPARTMENT
3.4 Practice of human Resource Management in MPL.
3.5 Sales & Marketing Department
3.6 Introduction of Marketing Department
3.7 Organogram of Marketing Department:
3.8 Companies Marketing Activities:
3.9 Marketing Management Process of MPL
3.10 Introduction of Sales Department:
3.11 Technical Services
3.12 Functions of Planning & Economics Department
3.13 Functions of Engineering Departme 13-34
Chapter Four
4.0 Operations Department
4.1 Introductions of Operations Department:
4.2 Organogram of Operations Dept:
4.3 Functions of Operations Department
4.4 Deport:
4.5 Introduction of Main Installation.
4.6 Functions of Main Installation
4.7 Introduction of S&D
4.8 Functions of Supply and Distribution Department:
4.9 Introduction of Purchase Department
4.10 COMPANYS PURCHASING PROCEDURES:
4.11 Section of Accounts & Finance: 35-62
Chapter Five
5.1 Problems
5.2 Recommendations
5.3 Conclusion
63-66
Chapter One
Introduction1.0 IntroductionPadma Oil Limited, a subsidiary of Bangladesh Petroleum Corporation, is engaged in Procuring, storing and marketing of Petroleum products, lubricants and greases, bitumen and Liquefied Petroleum Gas (LPG) throughout the country. The company get the entitled to market the products from Bangladesh Petroleum Corporation (BPC), which import finished products and crude product (Subsequently convert it into finished products) as per countrys requirement. It gets the lubricants products from British Petroleum Company plc (BP) London. The company perform its operation through is main installation at Guptakhal, Potenga, Chittagong and 16 upcountry Depots throughout the country, It has appointed a lot of dealers, (Filling Station), Distributors, packed point dealers to market petroleum products and LPG Dealers for marketing of LPG gas throughout the country.
None of us are beyond of marketing. Without ensuring proper marketing let alone a firm, not even a man can think of its long existence in a present competitive world. At present there are three oil marketing companies owned by GOB engaged in marketing of petroleum, oil & lubricants (POL) in Bangladesh. Padma Oil Limited (POL) 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. POL was offload its 30% shares, it will require more transparency and more operational and financial efficiency,
1.2 Objectives of the study:
. The other objectives are as follows, 1) To know about the managerial activities of POL.
2) To know about the marketing activities of POL.
3) To find out the market position of the POL in the oil marketing companies.
4) To know about the import process of POL.
5) To monitor the sales volume of POL in different category.
. 1.3 Methodology of the study:
The information and the data have been collected after attending the internship program. Both primary and secondary sources of data are being used, these sources are as follows.
Secondary sources:
Different Publications of Padma Oil.
Different Publications of BPC.
Web sites of BPC,Pol, MPL, Related ministries, divisions and departments of GOB.
1.4 Limitations of the study:
All efforts have been made to arrange all the collected data and information in the present form of the report. The main limitations are:-
1) Lack of sufficient data & information.
2) Lack of harmonious relationship & close contract between the officials of the organization.
3) Lack of financial support.
4) The study requires experience to be fruitful but it was completely absent to me.
Despite of numerous problems with limitation & Bottlenecks, I tried my best to make the report more information with recent data, so as to arouse high satisfaction to my respectable teacher as per his expectation. .
Chapter-2
Overview Of the Company
Padma Oil Company Limited 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 'Rangooon Oil Company' established petroleum business in this part of the world by the middle of the nineteenth century. Following is a synopsis of Padma Oil Company's historical background;
1.In 1871 'Rangoon Oil Company' was registered as a joint stock company in Scotland having its main business activities in Burma (Known to the British until the later years of the 19th century as Burmah, which was a province of the then British India).
2. In 1885, Rangoon Oil Company was reconstituted and reformed as Burmah Oil Company. Business of this company was then spread over other provinces of British India, including Assam and Bengal. The Company's Head office was at 191 West George Street, UK.
3. Burmah Oil Company for the first time introduced drilling equipments for exploration of Oil in Burma in the year 1888. Previously oil was being collected in Burma by hand dug well.
4. Burmah Oil Company established their 'Moheshkhal Oil Installation' at Chittagong in the year 1903.
5. In 1908, Burmah Oil Company conducted a geological survey in Chittagong.
6. In 1914, Burmah Oil Company drilled a well at Sitakunda, Chittagong.
7. In the year 1920, M/s Bullock Brothers, a major distributor of Burmah Oil Company established their trading office at Sadarghat, Chittagong.
8. In the year 1929, Burmah Oil Company took over the office of Bullock Brothers at Sadarghat, Chittagong including 4.1 acres of land and established their own office there.
9. Prior to the partition of the sub-continent in 1947, mainly two oil marketing companies namely Burmah Oil Company (BOC) and Burmah Shell Oil Storage and Distribution Company (BSOC) were operating petroleum business in the area what now comprise Bangladesh. Burmah Shell established Aviation Depot at Tejgaon Airport in the year 1948.
10. Considering the Oil Marketing situation in erstwhile East Pakistan, Burmah Shell Transferred their share to BOC and in the year 1965 a new company called 'Burmah Eastern Limited' was formed with 49 per cent share of BOC. The rest portion of the share was issued to public and private individuals of Pakistan.
11. In 1977, Burmah Eastern Limited became a subsidiary of Bangladesh Petroleum Corporation.
12. In the year 1985, BOC transferred its entire property in Bangladesh (including share of Burmah Eastern Limited) in favour of Bangladesh Petroleum Corporation (BPC)
As per terms of the transfer of BOC, Burmah Eastern Limited was required to change its name and as such subsequently the company's name was changed as 'Padma Oil Company Limited' in the year 1988.
Mission:
To be the leader in oil marketing industries in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity.
Vision
To build an efficient, market-driven and customer-focused institution with a good corporate governance structure. Continuous improvement in our business policies, procedure and operations through Integration of technology at all levels.
To have sustained growth, broaden and improve range of products and services in all areas of Bangladesh with the aim to add increased value to share holders' investment and offer highest possible benefit to our customers.
CORPORATE HEADQUATERS:PADMA BHABAN, STRAND ROAD CHITTGONG 4000,BANGLADESH
RESIDENT OFFICE:6 PARIBAGH, DHAKA, BANGLADESH
MAIN INSTALLATION:GUPTAKHAL, PATENGA, CHITTAGONG, BANGLADESH
YEAR OF INCORPORATION:27 APRIL 1965
BUSINESS LINE:PROCURING, STORAGE AND MARKETING OF PETROLEUM PRODUCTS,LUBRICANTS & GREASES,BITUMEN AND LPG,MANUFACTURES & MARKETING OF AGRO CHEMICALS
LISTING STATUS:PUBLIC LIMITED COMPANY
STOCK EXCHANGE:DHAKA STOCK EXCHANGE, CHITTAGONG STOCK EXCHANGE
AUTHORIZED CAPITAL:1000 MILLION TAKA
PAID UP CAPITAL:661.50 MILLION TAKA
NUMBER OF SHARES:66.15 MILLION
NUMBER OF SHAREHOLDERS:14,063
NUMBER OF EMPLOYEES:993
Padma oil-Directors Panel
Md. Eunusur RahmanChairmanChairman,Bangladesh Petroleum Corporation,BSC Bhaban,Saltgola,Ctg-4100
Mamtaz-Ala-Shakoor AhmedDirectorJoint Secretary Finance Division, Ministry of Finance, Dhaka
Md. Masud SadiqDirectorCommissioner of Custom,Custom House,Chittagong.
Begum Farzana MamtazDirectorDy. Secretary (Operations-1).Energy & Mineral Resources Division, Ministry of Power, Energy & Mineral Resources, Dhaka
Mohammed Abdul AwwalDirectorChairman. Bengal Shipping Lines Ltd. Chittagong
AKM Afzalur Rahman BabuDirectorManaging Director, Landmark Footwear Ltd. Baridhara, Dhaka
Ahmed Jamal Khan ChowdhuriIndependent DirectorCEO Dairy Farm Project of the Consolidated Tea & Lands Co. Ltd. Dhaka
Md. Abul KhairDirectorManaging Director, Padma Oil Company Ltd. Chittagong
Corporate Management
Md.Abul KhairManaging Director
Md. Kazi Ali HossainGM (Marketing)
Helal Ahmed ChowdhuryGM (Finance)
Khondakar Sarwarul AlamDGM (Chemicals)
Swapendau Sekhar GayenDGM (P&A)
Naresh Chandra DasDGM (Dhaka)
Ataur RahmanDGM-CA
Kafil Uddin Mahamud ChowdhuryDGM (Sales)
Mohiuddin AhmedDGM (Audit) & Company Secretary
Akter UdduzaDGM (Chemical Prog.Co-ord)
M. Enayet Kabir ChowdhuryDGM (Aviation)
Md.Abu Saleh IqbalDGM(Operations)
Md. Numan Ahmed TaffaderAGM(E&P)
Major Petroleum Products of Padma Oil Company
Short NameProduct NameUnitRevised Price(TK)Effect FromRemarks
HSDHIGH SPEED DIESEL OILlitter42.7130/11/1999
SKOSUPERIOR KEROSENE OILLitter43.1329/11/1999
MSMOTOR SPRITELitter71.7929/11/1999
HOBCHIGH OCTANE BLENDING COMPOUNDLitter74.8129/11/1999
FOFURNACE OILLiter26.0029/11/1999
JBOJUTE BATCHING OILLiter45.7029/11/1999
LDOLIGHT DIESEL OILLitter45.7029/11/1999
Minor Petroleum Products of Padma Oil Company
Padma Lubs
TypeProduct NameUnitRevised Price(TK)Effect FromRemarks
Engine OilPADMA SUPER ENGIN OIL5 Liter Can645.7929/11/1999
Automative Gear OilAUTO GEAR OIL 90 EP/140 EP5 Liter Can698.6429/11/1999
Industrial OilINDUSTRIAL GEAR OIL 68/100/150/220/320/460205 Liter Drum136.1429/11/1999
Hydrolic OilHLP OIL 32/46/68/100/150/220205 Liter Drum125.4229/11/1999
Spindle OilBOC SUPER SPINDLE OIL ISO 10205 Liter Drum190.0029/11/1999
Padma Greases
Short NameProduct NameUnitRevised Price(TK)Effect FromRemarks
WROG COMPOUND A/C/D/E/F/G/H180 KG Drum146.0029/11/1999
Padma LPG
Short NameProduct NameUnitRevised Price(TK)Effect FromRemarks
LPGFILLED CYLINDERCylinder678.0029/11/1999
LPGEMPTY CYLINDER01/01/1970
Padma Bitumen
Short NameProduct NameUnitRevised Price(TK)Effect FromRemarks
BITUMENBITUMEN 80/100Drum635029/11/1999
Other Petroleum Products of Padma Oil Company
Short NameProduct NameUnitRevised Price(TK)Effect FromRemarks
OCTANE100/130 OCTANE200.0029/11/1999
MTTMINERAL TURPENTINE48.0029/11/1999
Agro Chemical Products of Padma Oil Company
Short NameProduct NameUnitRevised Price(TK)Effect FromRemarks
FURADANFURADAN 5G29/11/1999
MIPCINMIPCIN 75WP29/11/1999
RIPCORD 10EC29/11/1999
Company Objectives:
To maintain consumer rights.
To deliver product within specific time with good quality.
To promote employees
To motivate employees for better service
To pay Govt. Tax, Duty, Vat etc.
To increase profit with minimization of cost.
ERD looks after the Company rules & regulations. These are
1) Maintains the office hour and attend the office just in time.
2) Enjoy leave by maintaining the companys leave policy.
3) By getting the permission of Managing Director and need of the company, company will send the employee for office tour and that employee will receive transport allowance & daily allowance as per company rules.
4) If an employee has any potentiality and good quality & qualification, he will get yearly increments.
5) If an employee are transferred by company one office to another then he or she will get transfer benefit as per company rules.
6) Medical allowance also offered by the company for its employee himself/herself, his/her wife/ husband, children who are less than 18 years old and also parents if they stay with them.
7) As per company rules employees will get yearly two bonuses.
8) Employees should always give priority of the company interest.
9) Employees salary and other allowances are fixed by Government & Board of Directors.
10) Every employee should try to hard & soul for the better service to the company with sincerity, honest, patience, experience, responsibility, dedication & concentration.
11) Employer & every employee must keep secret any kind of information of the company.
12) Employee does not have any right to involve with labor organization.
Chapter - ThreeActivities Of Padma OilFive Years Sales Performance
Quantity in M. Ton: PRODUCT2005-062006-072007-082008-092009-10
HOBC4531634167330292925931668
MS4786640909384993405438199
SKO191799166414153851126819145375
HSD855261814442830587805551910521
LDO00000
FO 8723066432615144599936243
JBO49143750397232995052
LUBE/GR83976490807668237523
LPG/Battery Water50943839372229634003
BITUMIN1948517928130221228817245
TOTAL12653621154371114627210670551195829
Sales & Marketing Department:
Introduction of Marketing Department:
Marketing is very important part of an organization. Companies profitability mostly depend on the marketing activities. So the importance of marketing is boundless.
Meghna Petroleum Limited is a marketing company. The company does not manufacture anything. It markets there POL products tart are received from two Eastern Refinery Ltd. (ERL) and Direct Import. MPL can not import petroleum products directly. Bangladesh Petroleum Corporation (BPC) imports two types of petroleum products.
a) Refined Oil : Every year BPC imports 70% of total requirements of Bangladesh and distributes by turns among the three marketing companies i.e. POL, JOCK and POCL as per their requirement.
b) Crude Oil: The rest of the total requirements i.e. 30% is imported as crude oil by BPC and sent to ERL for refining. After ERL distributes the products among three oil marketing companies according to their market share.
Companies Marketing Activities :
The Companies Marketing Activities are as follows:
1. To monitor dealers sales, receive and stock and keep them running.
2. Agent can receive product from others competitors so that we have to be aware about their activities.
3. Visit direct customer and keep them good relation & ensure better service increase business with them.
Organogram of Marketing DepartmentPadma Petroleum Ltd.
Sales & Marketing Organogram
General Manager
(Marketing)
DGM
(Engineering)
DGM
(Sales)
DGM
(P & E)
DGM
(Operation)
AGM(Agency)AGM(Bogra)AGM(Khulna)AGM(Dhaka)AGM(Chittagong)AGM(Retail Trade)AGM(Direct Business)AGM(Technical Service)
AGM(Chemical Sales)
Manager(Sales),H/O
Manager
(Technical Service)
Manager (Sales)
Manager (Sales)
Manager (Sales)
Manager (Sales)
Manager (Sales)Central A/cs
Marketing Management Process of POL:
The marketing management process consist of analyzing marketing opportunities, selecting target markets, developing the marketing mix and managing the marketing effort. The marketing management process of POL is given below.
Marketing research of
Marketing research is the faction that links the consumer, customer and public to the marketer through. Information are used to identify and define marketing opportunities and problems to generate, refine and evaluate marketing actions to monitor marketing performance and to improve understanding of the marketing process.
Research methods (a) Observational research
The research officer gathers primary data by observing the number of irrigation projects number of ships, new industries coming up increase of vehicles, actions and situations. Observational research is used to obtain information that consumer of POL products are unable to provide.
(b) Survey research:Survey research is the approach best suited for gathering descriptive information. POL wants to know about the users knowledge, attitude performance or buying behavior of petroleum products asking them directly.
(c) Laboratory research
This method is used by POL to test the quality and quantity of the petroleum products. When the customers complain about the quality, grades and colour variation of the POL products of MPL, this type of research in laboratory is arranged.
Selecting the target markets:
It is impossible to satisfy all consumers in a given market, at least not all consumers in the same way. There are too many different kinds of consumers with too many different kinds of needs. We select four (4) steps:
1. Demand measurement and sales forecasting.
2. Market segmentation.
3. Marketing targeting and
4. Market positioning.
Demand measurement and sales forecasting :
The total market demand for a product or a service is the total volume that would be bought by a defined consumer group in a defined geographic are during a defined time period in a defined marketing environment under a defined level and mix of industry marketing effort. Forecasting is the art of estimating future demand by anticipating what buyers are likely to do under a given condition.
Market segmentation:
Market consists of buyers and differ in one or more ways. They may differ in their wants resources and locations, buying attitudes buying practices. Any of these variables can be used to segment a market. Market segmentation is the act of dividing a market into distant groups of buyers who might call for separate products of marketing mixes. Its segments its total market into four regions.
They are:
1) Chittagong region
2) Dhaka region
3) Khulna region
4) Bogra region
On the other hand, MPL segments total market on the basic of business characteristics, which are as follow:-
1) Retail trade business.
2) Reseller business
3) Direct business.
Market target:
Market segmentation reveals the market segment opportunities facing a firm. The firm now has to evaluate the various segments and decide the number of segments. Market targeting is the act of evaluating each market segment to enter. POL targets those who use POL products and to serve them in a better way than other oil marketing companies.
Market Positioning:
Market Positioning is the arrangement for a product to occupy a clear distinctive and desirable place relative to competing products in the market of target customer. POL determines positions that distinguish its lubricating oil from competing products and that give it the greatest strategic advantage. For example, POL is in the position to say for liberating oils Use BP engine oils. We have the right oil for your engine.
Developing the marketing mix:
The marketing mix consists of everything the firm can to do influence the demand for its products. The many possibilities can be collected into four groups of variables known as the 4 Ps:
1) Product
2) Price
3) Place
4) Promotion
The marketing mix of POL are discussed as under:
Product:A product is anything that can be offered to market for attention, acquisition, use or consumption that might satisfy gnat or need. Products that are marketed include physical goods (e.g. automobiles, books), service (e.g. hair cuts, concerts), person (e.g. Mow, Bipasha), places (e. geckoes Bazaar, Rangamati).
Product : The product of POL
Petroleum products:
MPL markets various types of POL products. These are:
NameUser
High Octane Blending components (HOBC)Motor Vehicles
Motor sprit (MS)/ PetrolMotor Vehicles
Superior Kerosene oil (SKO) Domestic Use.
High Speed Diesel (HSD)Motor Vehicles
Light Diesel Oil (LDO)Industry Railway Ship
Jute Batching Oil (JBO)Jute Mill
Furnace Oil (FO)Industry & Brick Field
Liquefied Petroleum Gas (LPG)Domestic Field use
Bitumen Road Carpeting
Lubricants Engine Oil
Battery Water
Price:
Pricing is very important factors.
They have different pricing for different product. Such as
1. Pricing of bulk product : Set by the BPC
2. Pricing of lube: Set by the condition of BP.
3. Element of cost considered in pricing : Cost oriented Demand oriented.
4. Demand difference pricing
5. Competition oriented.
6. Going rate pricing
7. Special pricing
Zone pricing
The basing- point system
Uniform FOB pricing
The Principle of pricing are as follows:
1. Bank charge commission
2. Insurance
3. Port duties
4. Survey fees
5. Handling commission
6. Refinery cost
7. Import duty
8. VAT
Technical Services
Technical services department plays a vital role to market lubricating oil. Technical service Manager experienced in technical side. All activities are performed to import lubricating oils from world famous British petroleum. He also gives suggestion to blend base oil imported by PBC as per MPL requirements to the two blending company i.e. SAOCL and ELBL according to formula of BP. Lubricating oils is the most profitable product which gives the highest profit margin. Technical Services manager also renders post sales service to the customer regarding quality and performance of the product.
Two types of lubricants marketed by POL. These are:
i) Blended
ii) Non-Blended
1.Blended : POL directly imports BP lubricants in different packed sizes and drum sizes.
MPL imports lube in the following sizes:
Can Size 5Ltr, 4 Ltr, 3 EQ \F(1,2) Ltr, 1 Ltr, EQ \F(1,2) Ltr.
Drum size 210 Ltr, 209 Ltr, 208 Ltr, 205 Ltr and 200 Ltr.
2. Non Blended : In this case base oil is imported by BPC in 3 grades i.e. SN150, SN500, SBS150 and blended in ELBL or SAOCL using additives according to BP formula and marketed in the name of BP Brand.
Locally blended lubricating oil has different category like as
Engine Oil
Hydraulic Oil
Turbine Oil
Industrial Oil
Circulating Oil
Complains Handling :
One of important function of sales department is to handle complains properly and efficiently. Complains come from various sources which are as follows.
1.Maximum complains come from direct customers who directly procure from POL.
2.Sometimes retailers also complain about the quality Quantity grades color etc. of POL product.
Complains should be handled with due care and attention to protect the goodwill of company. For this reason MPL takes some steps to handle complains which are given below:
*Listing complains with care and attention.
*Classify the nature of complain
*Send officer to investigate the real facts
*If any complains comes from customer regarding product quality, grades, uses etc. then advices and technical assistance are provided to them.
Functions of Planning & Economics Department
This department performs the following functions:
*Sales forecasting
*Schedule operation program
*Companys Future demand forecasting and infrastructure development plan to meet demand.
*Long term and sustainable planning.
*Study economical and technical feasibility
*Analyze previous sales tread find out area wise weakness and plan effective strategy.
*Business diversification plans.
Generally sales forecasting is done considering the amount of crude and finished products planned for sales and the availability of funds for making that amount of sale etc.
Operational program ensures right quantity of POL products in the right place and right time with the bet mode of transportation. For this operational program, a nationwide
network is designed connecting all dealers, agents all over Bangladesh to make available the products in all required concerns.
Once Meghna decided to start fertilizer business other than marketing POL products but due to some constraint this business was stopped. At present MPL has an agreement with Rahim Afrooz for marketing battery water.
Functions of Engineering Department
Engineering department is very important department of POL as it is responsible for project planning & implementation, preparing & reviewing the companys budget estimation before tending etc. Engr. Department takes measure for total safety & securities at the depots through out the country. It follows & implements the explosive rules of 1937.
1.Capital Budget : This budget is about 20/25 crore take per year that include project like storage tanks building, big amount of renovation, procuring office equipment etc. For capital budget expenses required BUD-2c (cut of budget allocation).
2.Revenue Budget Expenses for normal day to day items like stationery, salary, maintenance etc. are revenue kinds of budget. It is about 5 crore taka per year.
SHIPPING, DUTY & CLAIMS SECTION:
Shipping : This section has been closed when Esso Company sold out their company to the Bangladesh Government.
Duty : MPL has 27 tanks, Two type of tanks:
Duty paid tank (ERL paid the Duty)
Bonded tank for imported bulk product.
When MPL received the oil from Ship, they submit the Into Bond Bill of entry to the Custom Authority within 15 days from the receiving time. POL will submit the Ex Bond bill of entry to the Custom Authority when product will be dispatched and POL will pay the duty as per rules, BPC reimburse this duty to the POL.
Duty for own import: POL import lube, additives, grease, transformer oil, meter, hose pipe, pump, with the approval of BPC. After approval of BPC, MPL open L/C. When supplier send the shipment document, MPL handover this document to the C&F Agent. C&F Agent completes the whole formalities within free times. When this time extend, Custom claims demurrage to the MPL. If the fault is from BP, BP bears the demurrage, otherwise POL bears it.
Claims: 4 types of Claims:-
1. Claim lodged with Bangladesh Railway dispatch through tank wagon within 6 months being dispatch.
2. Lodged with sea Custom Authority against excess payment of Customs dues with 120 days being payment.
3. Lodged with Customs, Excise & VAT Authority against excess payment of VAT within 120 days.
4. Lodged with Insurance Company against short receive of imported packed product. There is no time limit.
SECURITY SECTION:
Security section plays a vital role in any organization. Indirectly they are the owner of the organization. MPL has a security section with a Strong Security officer and a large number of elder securities. But in the security section of MPL no young security.
There are various ways of wastes and theft change of POL products through the pipe line or tank. So the security system of main installation is highly organized. They maintain of checking every person who are entering in the area through metal detector.
MPL operates mainly three jetties:
I. Dolphin Oil Jetty (DOJ-5)
II. River Mooring (RM-5)
III. Lighter Jetty (LJ-4)
According to organogram three should be 60 safety where three are only 36 guards among them 16 are from Ansers. They do their duties through 3 shifting hours:
a) 1st shift 8am 4pm
b) 2nd shift :4pm 12am
c) 3rd shift; 12am 8pm
The functions of this section are:
Bulk products delivery (registered)
Lube products delivery (reg)
LPG in & out (reg)
Bitumen in & out (reg)
All source of store item
Material gate pass
Maintain Local Store House Order (LSHO) Form
Maintain daily labor slip
Checking all the men and materials
Lubricants import handling (reg+ marine products)
Import handling.
LPG SECTION:
POL receives LPG from only sources LPG plant Chittagong. LPG plant Chittagong bottles LPG and MPL markets it. The LPG section is responsible for all kinds of marketing activities of LPG. LPG section invites and makes agreement with the carrying contractors through tender. These carrying contractors carrying out the LPG bottles/ cylinders from LPG plant to main Installation in order to that these contractors Tk. 2.90 per cylinder as carrying charges and also distribute through out the country. Every cylinder contains 12.5 kgs of LPG.
WAGON SECTION:
Wagon section is a part of Bulk section. Bulk product like- HSD, FO, JBO, SKO, MS etc. send to different rail-head depots by wagon. By this wagon a certain amount of necessary oil are send to Railway. We provide oil in our different depots by railway wagon. Such as:
Shreemongal Depot-HSD, SKO
Rangpur Depot-SKO, HSD
Chandpur Depot- JBO.
Rangpur Gas Turbine power plant- HSD.
Wagon Filling Shed:
Before load POL product into wagon this is necessary to wash up the wagon purely. So every wagon should discharge system under it which wagon I load POL products. This is
necessary to have different pipe line from BP Shed for Wagon Shed because for wagon and DP shed there have parallel line and both move at a time. As a result line pressure become slowly and it will take time to load. Some times we see that wagon loading keep stop for DP shed after shutting down the DP shed wagon will give to load. It is very watchful task to load the wagon, because no delivery flow meter is used to load the wagon.
ORDER & BILLING SECTION:
Order & Billing section is the payment receiving section. All payment against POL and Lube oil from customers received here. Amount received through pay-in-slip, payment order / DD etc. There is no cash received. But no on account sells excepts Defense, Railway, and Port for special consideration.
Introduction of S&D:
Supply and Distribution Department plays a vital role in case of supply and distribution of POL products to all of the depots in Bangladesh to supply & distribution properly for every product, there is an AGM (S &D) who supervises the timing, dispatching, agreement of rent and payment of coastal tanker, shallow tanker, railway box wagon and tank wagon etc. S&D works as vein of human body which helps to flow the blood between heart & cell. Without vein the blood cannot flow. Like as vein without S &D, the POL product cannot be sold everywhere in Bangladesh.
Functions of Supply and Distribution Department :
To share out POL product from ERL and import on the basis of demand.
To provide POL product through all the depots from MI.
To help BPC to prepare import schedule.
To give coastal tanker program.
To inform JOCL and POCL about import product.
To recruit coastal tanker, shallow draft tanker, truck, etc. on contract basis by tender on basis of company charter.
To make transit loss and deduct it from freight bill.
To prepare ERL and import received statement.
4.9 Introduction of Purchase Department:
Any kind of purchase of the MPL everything is done by this department. To maintain the purchase department there is a manager in this department. Through different types of purchase depend on different top level employee; every single purchase goes through the purchase department. Depending on the price purchase can divided in to theree types These are:
1. Direct purchase by user up to Tk. 2000
2. Purchase of goods valuing below Tk. 30000
3. Purchase of goods valuing above Tk. 30000.
Types of purchase:
Local Purchase (It is done by local tender)
Foreign Purchase (It is done by International tender)
Types of Tender:
Open Tender
Seal Tender (Only enlisted party can participate & it only done when the value is with 30,000 Tk)
4.10 COMPANYS PURCHASING PROCEDURES:
1st Step:
Budget item Summary Sheet (BUD-2C):
This is applicable only for capital items and must.
2nd Step:
Purchase Requisition (PA-07):
Single Envelope System
Two Envelope Systems.
The purchase Requisition (LPR: From PA-07) is an advice and authority to the purchasing Section to make a purchase. No purchase will be made by the Purchase Section unless authorized by a properly approved purchase requisition on from PA-07.
3rd Step:
Quotation:
Direct procurement or Committee procurement in a very special case & approved by MD.
UP to Tk. 30,000/- Distributed thru enlisted party.
4th Step:
Opening for Tender (Technical):
It has finished thru Tender Committee. It is applicable for Two Envelope System only. At least 3 bidders are required to fulfill tender quorum otherwise it is proposed/noticed for re-tender but for 3rd time tender it is not applicable to fulfill tender quorum.
5th Step:
Evaluation of Tender :
It has finished thru Technical evaluation Committee. It is applicable for Two Envelope System only. At least 3 bidders are required to fulfill quorum otherwise it is proposed/noticed for re-tender but for 3rd time tender it is not applicable to fulfill tender quorum.
6th Step:
Opening of Tender (Commercial) :
It has finished thru Tender Committee. At least 3 bidders are required to fulfill tender quorum otherwise it is proposed/noticed for re-tender but for 3rd time tender it is not applicable to fulfill tender quorum.
7th Step:
Comparative Statement (PA-31) :
The Tender Committee recommends awarding the job to the lowest bidder/bidders to the Management.
Up to Tk. 50,00,000/- must be approved by MD.
Above Tk. 50,00,000/- Up to Tk. 1,00,00,000/- must be approved by MD & as well as by MPL Board.
Above Tk. 1,00,00,000/- must be approved by MD and as well as By MPL Board & BPC Board.
8th Step:
Purchase Order (PA-09) :
Finally purchase order issued to the approved lowest bidder/bidders.
Functions of Accounts & Finance:
1. Financing the equipment personal, operational facility etc. of the oil market & office.
2. Preparing & verifying the consolidated financial statement of the centralized and decentralized cost center unit.
3. Obtaining accounting report from all units in each months.
4. Monitor mgt information using competitor and other system & keep all sorts of financial analysis & calculation update.
5. Carries out auditing by internal external & international auditors in order to verify consolidated financial statement report analysis.
6. Verifies the efficiency & effectiveness of inventory control, security wastage, supervision.
4.11 Section of Accounts & Finance: 1) Cash Section
2) Trade Accounts Receivable Section (TAR)
3) Banking & Insurance Section
4) Order & Billing Section (O&B)
5) Budget & Marketing Section
6) Accounts Payable Section
7) Stock Section
8) Ledger & Taxation Section
9) Payroll section
10) Office Service Section
11) Provident Fund Section
12) Computer Section
CASH SCTION:
This section deals with petty cash. Initially it receives Tk. 100000 as revolving fund to bear small day-to-day cash payment. Normally this section pays conveyance bill, small amount of medical bill, small amount stationery bill. On the payment of accumulated amount of Tk. 50000 cash section prepare a PCR to have the Tk. 50000 again.
In addition to this, Cash Section deals with the Main Installation (MI) sales proceed like Pay Order, Demand Draft (DD), Pay-In-Slip etc. deposit to Bank & Prepare a monthly bank statement of deposit instruments & give it to computer section.,
Further more when Terminal receive Pay-Order or Demand Draft through SA-02, they send a summary sheet after making to the Bank and this section done the cross check with Invoice.
TAR SECTION:
The TAR Section prepares individual customer-wise sales data. Basically when Govt. party i.e. Defense, PWD, Railway and PDB wants to receive product by credit. This section made the actual figure of sales. This section also looks after the sales of Semi Govt. organization wise, Filling Station wise, Agency points wise. Dealer wise etc. It is also known as Customer Account. Normally each depot sends sales report-party wise, product wise details to TAR department & this section input the data to party wise ledger book. This section normally does the following functions and responsibilities:
Prepares monthly statement of A/R through SA-01.
Prepares aging analysis.
Prepares summary of Control Sheet.
Maintain each customer account.
Maintain Customers ledger namely GE-09 & RE-23 in every month for every region.
Data of this section is very much essential for taking decision.
ORDERS AND BILLING SECTION:
O & B section performs the following responsibilities to protect the financial jeopardize in MPL depending on invoices SA-01 and SA-02, which are sent by different depots to O & B section.
Record the sales for every depot with location wise, product wise, agent wise.
Prepare & Issue of Debit note & Credit note.
Prepare Freight Poll account.
O & B prepares the only monthly Journal Voucher. The Journal are-
JV-01- To issue with Credit Note.
JV-02- To issue with Debit Note.
JV-20- Record the sales.
The entire sales & stocks figure of the company confirm by the reconciling the data of TAR section & O&B section. This section prepares the Debit note for receiving the payment & Credit note for receiving excess payment. BUDGET & MARKETING SECTION:
The section is responsible to prepare different type of budget. Basically every department prepare their round the year requirements & this section compile all the requirements, transforms the requirements into financial data & thus the transform into MPL budget.
*** Expenses Budget Revenue Budget.
*** Project/ Establishment Budget = Capital Budget.
This section also prepare the review budget after 6 (six) month of every year.
The main objectives of this department are to:
Ensure custodianship of all company assets to verifying their physical existence.
Monitor and assets proper informational needs pertinent to company activities and thereby facilities according procedures and achieve financial growth.
The main features of the department are:
Financing the equipment, personnel, operational facilities etc. of the oil market and office.
Preparing and verifying consolidated financial statements of all centralized and decentralized cost centers units.
Obtaining according reports from all units in each month.
Monitor management information using competitor and other system and keeps all sorts of financial analysis and calculation update.
Carriers our auditing by Internal External and International Auditors in order to verify consolidated financial statements, reports and analysis.
Verifies the efficiency and effectives of inventory control, security wastage, working procedures, supervision, machine maintenance workers safety, advertising tools etc.
ACCOUNTS PAYABLE SECTION:
Payment sections are made by two sections:
1. Banking Section.
2. A/P Section
The Nature of payments are-Salary, Leave Encashment & every allowance other than direct payment. Cartage bill, Railway, CPA, BIWTA, BIWTC, Tanker Bill, Defense, Rent for Office, Medical fee, Gas, Wasa, Electricity bill, Fitness for car, Telephone bill, Newspaper bill, Purchase of medicine, Employees Traveling expenses, Reimbursement of Petty cash.
It is very important section of the accounts department as all mot all the payment process through this, section makes the following payments.
Payment for purchase of ERL,
Payment for product imported to BPC
Payment to Tanker Owner.
Payment to Trolley Owner.
Control all the payment to depots, offices through out the country.
STOCK SECTION:
Stock section deals with procurement and distribution and storage amount the POL products. This section calculates stock in hand of all the depots and MI to calculate stock positions (Monthly, Quarterly, Yearly). It prepares product wise, depot wise region stock position in the basis of DBPSR (Daly Bulk Product Sales & Received) it considers different types of losses, purchases and opening stocks. Stock section prepares JV-14 for monthly product purchase with details product summary. They also prepare the JV-16 for monthly operational loss & gain with the help of depot wise operational data.
For preparing of product Balance Sheet the main document are:
IN-17- Summary of stock.
IN-89- Inventory entry, In & Out
In-43- Transshipment order for Refine product.
In-44- Other than Refine product for Transshipment
IN-72- Product assistant (Inter Company Transaction received by dealer)
DBPSR- Refine stock Information.
Stock Batch- Document listing summary.
Sales Batch Sales related document.
Sales statement-From Depot.
Some Journal Vouchers are:
JV-16-Operational loss/gain
JV-13- Rebranding (Only lube)
JV-14- All purchase
JV-55- Tanker operations (Transit loss & tanker freight bill)
JV-56- Closing stock valuation
JV-91-Opening stock
JV-12- Product own use
Loose JV-Wind fall loss/gain, Conversion loss/gain, Retransshipment, MMSC.
LEDGERS and TAXATION SECTION:
Ledgers and Taxation section is the last section where all postings are made by this section and output is Financial Statement. This section makes key statement of the financial activities where we get the idea of the performance of the company. These key statements are sent to GM and BPC according to the instructions. This section deals with the Company Taxation matters (for last years this matter is deals by company nominated Ta consultancy firm Huda Vasi & Company. This section prepares several types of statement like.
General Ledger
Trial Balance
Profit & Loss Account
Balance Sheet
Notes & subsidiary ledger (break down of the general ledger)
Income Statements
Cash flow statements.
PAYROLL SECTION:
Payroll section is running by Pay Master. Payroll section deals with salaries, wages, all sorts of bonus, overtime, utility etc. most the payment make through bank. The functions of payroll section are as follows:
Process the salary.
Maintain bank account of Non-Management and Management Employees.
Prepare salary sheet for Management and Non-Management Employees.
Maintain Non-Management attendance record (ER maintains the Management records).
There is software which name is Foxpro. Here 4 file that is as follows:
MN-Salary main file.
MN-Loan file
M-Bank
PROVIDENT FUND SECTION:
Company provide 10% provident fund (on Basic salary) facilities for all the permanent employees. The account of PF supervise by the section. It controls the investment, loan, final settlement under the certain rule.
COMPUTER SECTION:
MPL has a computer section under the supervision of Accounts & Finance Department. Only the entry & store of data is done here. Basically the data of TAR section, Banking section, Marketing section are process & store here.
Chapter-FourFindings and analysis
Findings No organization exits without weakness and problem. In POL, the following weakness exits:
1. Office environment is not that much homogeneous with the change of time.
2. The grievance handling procedure for employees of POL is not sufficient and strong enough.
3. Existing training program for POL management and non-management are not applied at all.
4. Seminar/workshops for fields level officials for extensive marketing activities and development are not satisfactory.
5. Main installation of POL with other depots are also not within safety net.
6. The sales promotional activities which are taken by POL are not sufficient and business oriented.
7. POL cannot meet up product demand in the market in time. As for examples LP Gas and Bitumen.
8. Product import tanker handling by POL which is governed by BPC hence POL suffers sometimes to get proper share import handling, which is profitable for the company.
9. Transshipment of POL products from MI to different depots are not in smooth and timely operative.
10. POL product pricing is determined by the government where profit margin is kept low, as such POL does not get any benefit from huge turnover.
11. Appointment of middlemen (like Dealer, Agent) is not under proper procedure of POL.
12. The overall product distributor and operating system with other functions are still done by manual.
13. The activities of Employee Relations department is not well equipped and informative.
Recommendations:
1. Quality man power is sales department is to be increased.
2. POL should be needed to arrange for field level officials, sale oriented seminar / Workshop for extensive marketing activities and development.
3. POL should take more promotional activities for the settlement of company.
4. POL needs total computerized and accounting software system immediately.
5. Establish of proper fire fighting materials and supporting training courses for workers to use it properly.
6. Good carrying contractor with sufficient trucks, agent, and dealer of filling station should be appointed by POL.
7. Employee Relations department should be more strong and timely compliance based.
Conclusion
Petroleum is such kind of product, without which sustainable development of a country can not be possible. Economic condition of every country of the world depends on its price ups and down. Bangladesh is not out of them. So, this kind of important product deals by POL. The present product market performance of the company is good in visible scene. The management of the company always careful about his commitment. The management contents qualified, experienced & skilled teams who are able to implement any types of decision which are fruitful for the company. I specially give thank to all executive or departmental head for arranging such kinds of training.
Though POL deals precious & valuable product and the people of the country depends on its. It fail means total fall in darkness. So, we all should be cautious about all kinds of devil activities.
References:
.Different publications of Padma Oil Limited. Prospectus and Brochures.
Previous report.
Different web publications.
Developing marketing mix:
Designing products
Pricing products
Placing products
Promoting products
Managing the marketing
Competitors analysis and competitive
Planning, implementing and controlling
Marketing programs
Selecting target markets:
Measuring and forecasting demand
Market segmentation targeting and positioning
Analyzing Market Opportunities :
Marketing research and information system
Consumer Markets
Organization Markets
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