2. Company Profile of “Navana CNG Limited"
Prepared for:
Rezwana Karim
Assistant Professor
School of Business and Economics
United International University
Prepared by:
Tahasin ali 114 131 022
Takrim Newaz 114 131 023
Mohammad Hisham 114 131 024
Farhad Hossain 114 131 020
Md. Jubeyer Ahmed 114 131 027
Section: A
26th
April, 2014
United International University
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3. Letter of Transmittal
April 26, 2014
Rezwana Karim
Assistant Professor
School of Business & Economics
United International University (UIU)
Subject: Submitting Term Paper on ‘Company Profile of Navana CNG Limited ’.
Dear Madam,
This is to inform you that, we, the five members of our group have completed the term
paper on “Company Profile of Navana CNG Limited”. We have followed the instruction
that you have given us. We hope that you will approve our term paper and appreciate our
group work.
It would be grateful to us if you accept our term paper and consider our work as good and
unique.
Thank you,
Sincerely Yours,
_____________________
Tahasin Ali
_____________________
Takrim Newaz
______________________
Mohammad Hisham
__________________________
Farhad Hossain
________________________
Md. Jubeyer Ahmed
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4. Table of Content:
SL no. Topic Page Number
1. Executive Summary 5
2. Introduction 6
3. About Navana CNG 7-8
4. Ownership of the Company’s Securities 9
5. Services 10-18
6. After Sales Service 19-24
7. Financial reports 25-27
8. Executive Compensation 28
9. Associates 29
10.
Growth History of Navana CNG Ltd.
30-31
11.
Risk Factors and Management Perception
32-33
12.
Conclusion
34
13.
Reference 35
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5. Executive Summary:
Navana group is leading business organization in Bangladesh. Navana Group under the
leadership of Mr. Shafiul Islam Kamal as Chairman emerged into a separate physical entity from
Islam Group after the death of its Chairman Mr. Jahurul Islam (entrepreneur) which was then the
largest business group in Bangladesh. Navana Group comprises a number of companies, has
diversified its activities in various areas like product and project marketing, construction and real
estate business, international trading, distributorship and production of various items and already
attained significance in the business arena of Bangladesh. Navana CNG limited is a alliance
company of Navana group which is the leading CNG service in Bangladesh. It is the most
experienced CNG service company in Bangladesh. At present it has around 900 personnel in
various department and branches around the country. We have investigated the activities of
Navan CNG limited to prepare a full company profile. We have presented here the services, after
sale services, financial activity, growth history etc. The purpose of our report is to know the full
company profile its mission, vision, policy, ownership of the company and other related issues.
Navana CNG Limited is the sole distributor of world famous CNG and LPG conversion kit
manufacturer LANDIRENZO, Italy. Navana CNG Limited solely represents the renowned
manufacturer of CNG re-fueling station technology Safe, Italy. It has also collaboration with
OMNITEK, USA for diesel driven vehicle conversion into CNG. For fast filling system Navana
CNG represents WEH, Germany and OMB Saleri, Italy make products in Bangladesh. It has set
up a modern CNG cylinder re-testing centre in collaboration with AirBlast S.A, Argentina.
Navana CNG Limited has also collaboration with NGV Motori, Italy for disel driven Generator
conversion into diesel gas system. In the report we have discussed about the company’s profile,
its mission, vision, policies, growth history, service, after sale service, financial activities and
other issues which are related to business.
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6. Introduction:
This term paper is about Navana CNG limited which is a alliance or a sister concern company of
Navana group. Our honorable faculty Ms. Rezwana Karim, Assistant professor, School of
Business & Economics, UIU has authorized us orally to prepared a full company profile.
According to her instruction we have prepared our term paper. The purpose behind preparing the
term paper is to know the full company profile as its objective, goal, aim, mission, vision,
problem areas and financial activity. Here, in the term paper we have tried to cover the
company’s aim, mission, vision, policy, services, after sale services, growth history and some
other related issues of the company. We have used secondary data through internet, annual report
and other business report.
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7. About Navana CNG:
NAVANA Group is a Bangladeshi industrial conglomerate.
NAVANA Group split away in December 1995 form Islam Group after the death of its
founder and main architect, the most honorable Mr. Jahurul Islam. Under the pragmatic
chairmanship of honorable Mr. Shafiul Islam (Kamal) NAVANA Group has diversified
its activities and within a short span of time this group has become one of the largest and
prestigious business groups of Bangladesh. NAVANA Group comprises of a number of
companies. Which have achieved reputation in the respective avenues. NAVANA A
name, a company and finally a group of companies anchored deeply in the soil of
Bangladesh with honor and dignity.
Navana CNG Limited, a sister concern of Navana Group is the leading CNG service
provider in Bangladesh. lt's years of experience is the standard setter of CNG industry. At
present Navana CNG has around 900 personnel in various department and branches.
Navana CNG Limited is the sole distributor of world famous CNG and LPG conversion
kit manufacturer LANDIRENZO, s.p.a, Italy. Navana CNG Limited solely represents the
renowned manufacturer of CNG re-fueling station technology Safe s.r.l, Italy. It has also
collaboration with OMNITEK, USA for diesel driven vehicle conversion into CNG. For
fast filling system Navana CNG represents WEH, Germany and OMB Saleri, Italy make
products in Bangladesh. It has set up a modern CNG cylinder re-testing centre in
collaboration with AirBlast S.A, Argentina. Navana CNG Limited has also collaboration
with NGV Motori, Italy for disel driven Generator conversion into diesel gas system.
At present, Navana CNG Limited is running nine conversion workshops located at
various location in Bangladesh five of them are at Dhaka, two are at Chittagong and the
remaining two are at Sylhet and Bogra.
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8. Mission:
We strive to deliver defect free services and perpetuate an attitude of "do it right at the
first time".
Vision:
Our vision is to be the point of reference for complete CNG solution.
Slogan:
"For a clean alternative".
Quality Policy:
We strive for excellence in all endeavors.
Meeting all applicable legal requirements, we set our goals to achieve customer
satisfaction and to deliver defect free services (CNG Conversion, re-fuelling station and
cylinder re-testing) on time.
Implementation of this policy makes it essential that each person be committed to
perform exactly as specified.
It is our basic operational philosophy to concentrate on prevention method to make
quality a way of life and perpetuate an attitude of 'do it right at the first time'.
We are committed to achieve this by providing adequate resources and trained manpower
that strictly adhere to the procedure of ISO 9001:2008 Quality Management System
(QMS).
The top management of Navana CNG Limited is committed to continual improvement of
its QMS processes.
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9. Ownership of the Company’s Securities:
Sl
No
Name of the Owners of
Securities
Position No of Shares
1 Mr. Shafiul Islam Chairman 19,687,982
2 Mrs. Khaleda Islam Director 3,709,969
3 Mr. Monwarul Islam Director 70,701
4 Mr. Saiful Islam Vice-
Chairman
3,630,000
5 Mr. Sajedul Islam Director 3,603,900
6 Ms. Farhana Islam Director 71,874
7 Mr. Shahedul Islam Director 71,874
8 Mrs. Sumaiya Yasmin Shareholder 4,350
9 Mrs. Mafia Yasmi Shareholder 4,350
10 Aftab Automobiles
Limited
Shareholder 5,445,000
Total 36,300,000
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10. Services:
Navana CNG provides the following services:
• Petrol /Octane driven vehicle conversion into CNG.
• Diesel driven vehicle conversion into CNG.
• Diesel Generator conversion into Diesel Gas System.
• 4-stroke 3-Wheeler conversion into CNG.
• Selling gas through CNG re-fueling station.
• Selling CNG re-fueling station on turn-key basis.
• Selling CNG conversion kit, cylinder, cylinder shut-off valve and re-fueling
nozzle, receptacle etc.
• Offering package maintenance program for CNG re-fueling station.
• CNG cylinder Re-testing facility.
• Providing training on CNG conversion and re-fueling station.
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11. CNG Refueling Station
Sole Distributor of :
Navana CNG has been collaborated with world famous Safe s.r.l, Italy for the operation
of CNG re-fueling station and working as a sole distributor for marketing of Safe s.r.l,
Italy make CNG compressor. Navana CNG installed its first CNG re-fueling station in
February 2003. Now Navana CNG uses two types of compressor for setting up of CNG
re-fueling station, one is electric driven compressor and the other is gas driven
compressor.At present Navana CNG has captured more than 50 % market share in
Bangladesh by selling and installing CNG re-fueling stations to the various customers
and 17 nos. of own operating CNG re-fueling stations in all over Bangladesh. Navana
CNG provides all kinds of support for installation and commissioning of CNG re-fueling
station and 24 hours backup service by well trained maintenance team to the customers.
Additional features:
• Gas engine/ Electric motor driven compressor.
• Mother - Daughter station technology.
• Chiller for increasing filled gas quantity.
• Low maintenance cost.
• 24 hours maintenance service.
• Low electric consumption.
• Bus filling technology.
• Exclusive 4 nozzles dispenser.
• Automatic billing system.
• Fast filling nozzle.
• Longer life for all moving parts.
• Well trained engineers from Italy.
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13. Petrol/Octane driven vehicle conversion into CNG
Sole Distributor of :
Navana CNG has been collaborated with world famous LANDIRENZO s.p.a, Italy for
conversion of Petrol/ Octane driven vehicle into CNG and also working as an exclusive
distributor of LADDIRENZO s.p.a, Italy make CNG conversion kits and accessories in
Bangladesh. Commercially Navana CNG has launched its conversion activities in the year 2002
and today it has become the market leader in Bangladesh for CNG conversion business by
converting more than 50,000 nos. of petrol/octane driven vehicle into CNG. Navana CNG
provides services by well trained engineers from LANDIRENZO s.p.a, Italy. At present Navana
CNG is running eight nos. of workshop for conversion of petrol/ octane driven vehicle into CNG
all over Bangladesh. Four of them are at Dhaka, two are at Chittagong and the remaining two are
at Sylhet and Bogra.
Additional features:
• 15 months warranty for all mechanical components of kit.
• 15 months free service facility and five years warranty for Cylinder.
• Backup service facilities in Dhaka, Chittagong, Sylhet and Bogra.
• Availability of spare parts is guaranteed.
• State of the art technology.
• Highest conversion experience.
• Trained engineers from Italy.
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14. Diesel Driven Vehicle Conversion into CNG
Sole Distributor of :
Diesel driven vehicle conversion into CNG is one of the fastest growing business sector in
Bangladesh. Navana CNG Limited started conversion of diesel driven vehicle into CNG on 22nd
June, 2004 by converting a HINO - FB2W mini bus.Navana CNG uses two types of system for
diesel driven vehicle conversion into CNG, one is the Traditional Distributor System and the
other is Electronic Ignition System of Omnitek Engineering Corporation, USA. This system is
the world's number one system for retro-fitment and Navana CNG is the sole distributor of this
product.This system ensures minimum gas consumption and quick pick-up with optimum power.
Vehicle will be auto tuned depending on engine load, temperature and R.P.M Micro processor
always monitors engine by different types of sensors.
Dipnagar workshop, which is dedicated for diesel diesel driven vehicle conversion, has emerged
as the largest diesel-CNG conversion workshop in the country. Navana CNG has already
converted more than 1000 diesel vehicles of all brands like Hino,Isuzu,Tata,Ashok-
Leyland,Toyota, Bedford etc. into CNG and all of these with utmost satisfaction of our
customers'.
Additional features:
• Conversion and after sales services in Dhaka, Chittagong, Sylhet & Bogra.
• Availability of spare parts is guaranteed.
• Well trained engineers and technicians.
• Highest experience in diesel driven vehicle conversion into CNG.
• Latest technology.
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15. Cylinder Retesting Facility
Sole Distributor of :
Navana CNG started as the first government approved CNG cylinder re-testing centre in
Bangladesh in private sector. According to the recommendation of cylinder manufacturer,
cylinder re-testing is required in every five years from cylinder manufacturing date to ensure
100% safety of using CNG cylinder. Navana CNG cylinder re-testing centre is equipped with the
most modern and computerized machines which is supplied and supported by world renowned
company AirBlast, Argentina. Most of the engineers and technicians of Navana CNG Limited
are skilled and well trained by Air Blast,Argentina,who are working in this re-testing centre.
Why CNG Cylinder re-testing is required?
• To ensure 100 % safety of using CNG cylinder.
When Cylinder re-testing is required?
• After every 5 years from the date of manufacturing.
Our Strengths:
• Government approved first CNG Cylinder re-testing centre in private sector.
• Certified, Skilled & well trained Engineers and Technicians..
• Cylinder wall thickness is measured by Ultrasonic Thickness Tester.
• Test mark sign is used after testing the fitness of the cylinder.
• Testing procedures are maintained according to ISO 11439:2000 and BS 5430 standard.
• We follow up Gas cylinder rules 1991 and CNG cylinder rules 2005, Govt. of
Bangladesh.
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16. Diesel generator conversion into diesel gas system
Sole Distributor of :
As a pioneer of CNG industry in Bangladesh Navana CNG Limited has started its latest project
for conversion of diesel generator into Diesel Gas System.On 10th June 2008, Navana CNG
started diesel generator conversion by converting a 250 KVA CUMMINS, India and a 50 KVA
KOHLER, USA make diesel generator into Diesel Gas System. Navana CNG has been
collaborated with world renowned CNG kit manufacturer NGV motori, Italy for converting
diesel generator into Diesel Gas System and working as an exclusive distributor of NGV motori
in Banglasesh.
Additional features :
• Can be operated by Diesel or Diesel Gas System.
• Reduce fuel cost upto 60 %.
• ECU controlled system.
• Low maintenance require than gas generator.
• No major changes in the basic generator configuration.
• Well trained engineers from NGV motori, Italy.
• No loss of power after conversion.
• Noise level remains almost same with original features after conversion.
• No chance of injector blocking.
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17. Vehicle Fitness Checkup Station
To ensure best performance from vehicle, certain parts and systems of vehicles have to be
checked at certain intervals as vehicle has thousands of moving parts, which are working
together and by normal driving over time, some of these parts simply wear out or no longer
perform the way they should.
Proper and periodic fitness checkup of vehicle is the best way to reduce the chances of
unexpected breakdown and costly repair. To check more in-depth of vehicle, Navana CNG offers
a complete vehicle fitness checkup facility including hands-on inspection of the brake
performance, suspension, sideslip, engine power, headlight and exhaust emission which ensure
long life of your vehicle without any trouble.
Additional features:
• Better engine performance ensure less fuel consumption & better emission and reduces
the chances of major engine breakdown.
• Ensures better brake performance in maximum load condition with proper control on
vehicle.
• Ensures better suspension performance of vehicle to ensure comfortable journey of users.
• To ensure proper wheel allignment for vehicle turning to reduce wear & tear of vehicle
tyre.
• Increases engine performance by testing smoke emission.
• Reduces harmful exhaust emission which is produced during combustion.
• Appropriate focus of head light ensures proper driving and reduces the chances of
accident.
• To measure the sound level and reduce sound pollution from environmental aspect.
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18. Engineering Workshop
Our Services:
1. Crank Shaft Grinding (6 Cylinder)
2. Crank Shaft Grinding (4 Cylinder)
3. Cam Shaft Grinding
4. Cam Bush Fitting
5. Block Facing
6. Head Surfacing (6 Cylinder)
7. Head Surfacing (4 Cylinder)
8. Liner Setting
9. Liner Making
10. Liner Boring & Honing
11. Valve Seat Replacing
12. Valve Seat Making
13. Valve Guide Replacing
14. Connecting Bush Fitting
15. Brake Drum Machining
16. Disk Machining (Brake)
17. Fly Wheel Machining
18. Pressure Plate Machining
19. Piston Assembling
20. All kinds of Engine related work
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19. Additional features:
• Most modern automotive engineering machineries from renowned Pathak Machine Tools
Company, India.
• All kinds of Engine overhauling facility.
• Follow engine catalogue to complete the work and delivery within minimum time
duration.
• Ensure 100% quality service with competitive price.
• Trained and experience Engineers & Technicians.
• All time electricity power supply for smooth operation.
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20. Other Products and Services
Sole Distributor of : &
four stroke three wheeler conversions into CNG
For four stroke three wheeler conversion into CNG, Navana CNG is engaged in marketing the
products of VANAZ engineers, India
LPG Conversion
Navana CNG markets world famous LANDIRENZO s.p.a, Italy make LPG kit for conversion of
petrole/octane driven vehicle into LPG.
Direct Sell
Navana CNG is engaged in selling CNG kit, cylinder, cylinder shut-off valve, re-fueling nozzle,
receptacle and CNG related accessories to the authorized workshops in local market.
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21. After Sales Service:
Navana CNG Ltd. has augmented it's brand image by giving smooth and most excellent after
sales support from it's birth. So far, it experiences 210 nos. of re-fueling station installations and
commissioning & monitoring all these stations with complete customer satisfaction bygiving
continuous and prompt after sales support.
We provide customized layout, drawing & necessary P & ID documents and all kinds of logistic
support to set up a complete CNG re-fueling station. We have a well equipped installation &
commissioning team as well as troubleshooting & preventive maintenance team which furnished
the NAVANA CNG LTD. a best after sales service to that from its competitors.
We have a good number of abroad ( Italy , India , Pakistan , China ) trained engineers who are
dedicatedly engaged to support our valued customer round the clock.
We have developed a strong R & D department who are continuously searching to improve the
existing technology to smooth the operation & find out the new ideas for facilitating our service
quality.
Our service team always analyze monthly breakdown report & generate an advised report to the
customer on monthly basis by which a customer can easily understand his station's performance
& what to be done by him in the next for smooth operation of his machine.
We have a well distributed service zone throughout the country which allows quick response
time to any service inquiry and that is recorded in a register book.
We are the only ISO certified company (ISO 9001:2000 ) of CNG sector in Bangladesh and our
after sales service team is committed to maintain that standard.
NAVANA CNG LTD. has gathered strong spare parts support by which customer can get any
kinds of spare parts by easy & fast way.
Finally we can say that with our long & proven track record in this field, our best after sales
support give us a state of ability to maintain our quality and any kind of emergency solution for
CNG refueling station.
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22. Our Commitment:
Customers are our first priority. It is our mission to serve our customers in a professional and
responsive manner, and all of our employees are empowered to do so.
Service Highlights:
• Cylinder Warranty - 5 (Five) years warranty for CNG cylinders.
• Service Warranty - 15 (Fifteen) months or 37000 km of vehicle running; whichever is
earlier and covers free services & repairs related to CNG conversion system.
• Mechanical Parts Guaranty - 15 (Fifteen) months replacement guaranty for mechanical
parts of CNG.
• Extended Warranty Service Card - Expiry of initial 15 months warranty, those who
wants to achieve additional 1 (one) year service warranty, they can purchase Extended
Warranty Service Card for next 1 (one) year.
• Attractive Service Location - 7 (Seven) Workshops are available for taking after sales
services located at various places in Dhaka, Chittagong, Sylhet and Bogra.
Terms and conditions:
1. Warranty is only for CNG conversion system and valid for a period of 15 (Fifteen)
months or 37,000 km of running from the day of issuing warranty card, whichever is
earlier and covers free service and repair related to only CNG conversion system.
2. 5 (Five) years warranty for CNG cylinders.
3. 15 (Fifteen) months replacement Guaranty for Mechanical Parts of CNG.
4. Warranty does not cover consumable electronic components e.g. selector switch, wiring
harnesses, emulator, relay, petrol solenoid valve, regulator solenoid valve and coils,
STAP, Potentiometer, Amplifier, LCS ECU, Actuator, shut off valve with solenoid coil
[special] and adjustment or repair is done by any unauthorized technician or person.CNG
Injectors etc due to poor performance of product, battery, mishandling, immersion in
water or damage by any accident.
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23. 5. Warranty Service is void if any
SERVICE & MAINTENANCE:
We believe in customer delight, not just satisfaction. Therefore, our constant venture is to
support the company's mandate by taking good care of your converted vehicle's service and
maintenance through our vast network and service outlet spread across the country.
Our fully equipped workshops have laid out for vehicle servicing having quality precision
instruments with well furnished infrastructure .A team of highly qualified and experienced
engineers & technicians ensures highest standards of service quality and reliability. For any
emergency, our mobile service back up team has devoted to serve our valued customer for 24
hours round the clock.
WARRANTY COVERAGE:
Every converted vehicle is backed by a powerful basic vehicle service warranty protection
plan for 12 (twelve) months or 30,000 km. of vehicle running. Customer should avail these
services within the stipulated conditions of time period or km range, whichever is earlier
from the date of conversion. Furthermore, we cover 5 (five) years warranty for CNG
cylinders. After the completion of free services or its validity period customer must continue
availing paid services as per the recommended service schedule.
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24. Our Features:
• Well Trained Engineers and Technicians: Most of the Engineers and Technicians are
trained by Italian experts from NGV Motori s.r.l, Italy.
• Genuine Parts: All the parts are directly imported from Italy.
• Availability of Spares: All of the spare parts are available when it is necessary.
• Quality Products: All the products are manufactured by Italy following all types of
manufacturing Standards.
• Safety System: Total system is controlled by ECU with various sensing devices, which is
programmed by Computer.
• Warranty Coverage: A Warranty Card is provided which represents the validity for a
certain period.
• After sales service: Considering customers demand after sales service is given most
priority.
Warranty Policy:
This warranty card ensures the after sales services for Diesel Generator Conversion into Diesel
Gassystem to maximize the benefit of the customers.
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25. Terms and Conditions:
This warranty card represents the validity for a
period of 12 (Twelve) months or 1500 Hours of running for regular package (whichever
comes earlier) and that covers free services & repairs related to Diesel Gas system.
This service card does not cover consumable electronic & Mechanical components i.e.
Selector Switch, Gas Regulator, Electrical Control Unit (ECU), MAP Sensor, Sensors
( Water Temperature, Air Temperature, Gas Temperature), Stepper Motor, Solenoid Valve,
Mixer due to poor performance of the Battery, mishandling, immersion in water or damaged
by any accident.
The warranty Terms and conditions shall be treated as void if any adjustment or repair is
carried out by unauthorized technician or any other person within the warranty period.
This warranty card has been produced for availing free Service and Repair.
This warranty card covers only Electronic or Mechanical components and void if the
Generator does not run according to the operating rules supplied by Navana CNG Limited.
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26. Our Services:
• We provide cylinder re-test satisfactory certificate at the time of delivery.
• We also clean cylinder shut off valve by Sand blasting machine.
• Cylinder servicing by pressurized water (200 BAR) to remove residual oil, sludge and
rust inside the cylinder.
• Re-painting service is provided to fascinate customer's satisfaction. Building Awareness.
• Approved CNG Cylinder standard by Explosive department of Bangladesh.
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27. Financial reports:
Navana CNG Limited
Balance Sheet
As at March 31, 2009
Amount in Taka
Note 2009 2008
Property and Assets
Non-Current Assets 628,447,727
304,002,07
4
Fixed Assets at cost less depreciation 3.00 587,246,265
287,255,09
3
Long-term Security Deposit 4.00 38,729,767 14,275,286
Intangible Assets 5.00 1,542,264 1,542,264
Investment in Shares 6.00 929,431 929,431
Current Assets 465,590,953
574,919,92
3
Inventories 7.00 301,316,528
443,889,68
2
Accounts Receivables 8.00 21,863,925 13,903,312
Inter Company Current Account - 30,117,676
Advances, Deposits and Prepayments 9.00 52,658,681 40,111,311
Cash and Bank Balances
10.0
0
89,751,819 46,897,942
Total Property and Assets
1,094,038,68
0
878,921,99
7
Equity and Liabilities
Shareholders' Equity 627,162,667
382,501,08
0
Share Capital
11.0
0
300,000,000
100,000,00
0
Tax Holiday Reserve 150,467,082 52,602,447
Proposed Bonus Shares
22.0
0
63,000,000
200,000,00
0
Retained Earnings 113,695,585 29,898,633
Non-Current Liabilities 270,900,498
316,026,02
3
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28. Debentures-net of current maturity
12.0
0
94,395,000
126,000,00
0
Lease Finance Liabilities-net of current maturity
13.0
0
102,285,470
115,483,75
3
Long term Bank borrowings-net of current maturity
14.0
0
74,220,028 74,542,270
Current Liabilities 195,975,515
180,394,89
4
Debentures-Current Maturity 40,000,000 40,000,000
Lease Finance Liabilities-Current Maturity 21,482,340 14,516,247
Long-term Liabilities-Current Maturity 44,953,673 49,562,150
Short Term Loan from banks
15.0
0
55,851,411 27,054,001
Payables and Accruals
16.0
0
33,688,091 49,262,496
Total Shareholders' Equity and Liabilities
1,094,038,68
0
878,921,99
7
Navana CNG Limited
Income Statement
For the year ended March 31, 2009
Amount in Taka
Particulars Note 2009 2008
Turnover 17.00 1,235,814,501
983,964,64
4
CNG Conversion Charges 693,047,113
716,732,04
3
CNG Sales 542,767,388
267,232,60
1
Less: Direct Expenses 18.00 759,042,020
577,438,07
2
Cost of CNG Conversion 435,281,693
459,215,61
9
Cost of CNG Sales 323,760,327
118,222,45
3
Gross Profit 476,772,481
406,526,57
2
Less: Operating Expenses 232,110,894
198,080,93
9
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29. Administrative & Selling Expenses 19.00 170,171,480
133,888,59
8
Interest Expenses 20.00 61,939,414 64,192,341
Operating Profit 244,661,587
208,445,63
3
Add: Other Income-net - 8,568
Net Profit transferred to Statement of Changes in
Equity 244,661,587
208,454,20
1
21.00
Earnings Per Share 8.16 6.95
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30. Navana CNG Limited
Cash Flow Statement
For the year ended March 31, 2009
Amount in Taka
Particulars 2009 2008
Cash Flows from Operating Activities
Collections from Customers 1,227,853,888 970,061,332
Payments for Costs & Expenses (737,847,306) (933,484,777)
Interest paid (85,133,914) (66,997,841)
Tax Deducted at Source - (1,512)
Net Cash generated /(used) from Operating Activities 404,872,669 (30,422,798)
Cash Flows from Investing Activities
Acquisitions of Fixed Assets (324,914,078) (122,937,487)
Long-term Security Deposits (24,454,481) (14,275,286)
Deferred Revenue Expenses - (1,488,305)
Dividend Received - 10,080
Net Cash used in Investing Activities (349,368,559) (138,690,998)
Cash Flows from Financing Activities
Redemption of Debenture (31,605,000) (34,000,000)
Lease Finance from/(repaid to) ICB (6,232,190) 130,000,000
Borrowings from/(Repayments to) Banks (4,930,719) 77,945,076
Receipts from Inter-Company 30,117,676 21,998,021
Net cash (used in) /provided by financing activities (12,650,233) 195,943,097
Net changes in cash and cash equivalents 42,853,877 26,829,301
Cash and cash equivalents at the beginning of the year46,897,942 20,068,641
Cash and cash equivalents at the end of the year 89,751,819 46,897,942
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31. Executive Compensation:
Name and designation with the amount of remuneration paid to the top ten salaried officers in the
last accounting year ended 31 March 2009:
Gross
Sl Salary
NoName of the Executive Designation Department (Tk.)
1 Sumit Kumar Shaha DGM Navana CNG Limited
1,440,00
0
2 Md. Atiur Rahman Manager Operation & Maintenance960,000
3 Sumun Saha Manager Sales & Marketing 960,000
4 Md. Masud Rana Deputy Manager Accounts & Finance 720,000
Sales, Marketing &
5 M. M. Rahman MuzumderDeputy Manager Business Development 720,000
6 Md. Imran Hossain Deputy Manager Workshop 720,000
7 Md. Ainul Haq Deputy Manager Diesel Workshop 720,000
8 Mr. Mizanur Rahman Deputy Manager Workshop 720,000
9 Md. Kamrul Islam Deputy Manager Workshop 720,000
10 Md. Ashiqur Rahman Assistant ManagerSales & Marketing 600,000
8,280,00
0
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33. Growth History of Navana CNG Ltd.
June 2001 : Formed Navana Limited (CNG unit).
February
2002
: Launched Petrol / Octane driven vehicle conversion into CNG.
April 2002 : Started its journey as sole distributor of Landirenzo, s.p.a, Italy, in Bangladesh.
July 2002 : Started its journey as sole distributor of Safe, s.r.l, Italy in Bangladesh.
February
2003
: Started operation of CNG re-fueling station.
July 2003 : launch CNG conversion workshop in Chittagong.
March 2004 : Started 3-Wheeler vehicle conversion into CNG.
April 2004 : Formed as Navana CNG Limited.
July 2004 : Launched CNG conversion workshop at kallaynpur, Mirpur, Dhaka.
August 2004 : Started Diesel driven vehicle conversion into CNG.
March 2005 : Launched CNG conversion workshop in Sylhet.
April 2005 : Started first unit of CNG Cylinder re-testing centre at kallaynpur, Mirpur, Dhaka.
May 2005 : Started conversion of petrol/octane driven vehicle into LPG.
May 2006 : Launched CNG conversion workshop at Uttar, Dhaka.
July 2006 : Launched CNG conversion workshop in Bogra.
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34. February
2007
: Established CNG conversion workshop at Paltan, Dhaka.
July 2007 : Started dedicated diesel conversion workshop at Dipnagar, Gabtoli, Dhaka.
February
2008
: Acting as exclusive agent of WEH, Germany & OMB, Italy products in Bangladesh.
March 2008 : Started second unit of CNG Cylinder re-testing centre at Gabtoli, Dhaka.
June 2008 : Started Diesel Generator conversion into Diesel Gas System.
January 2009 : Launched Daughter Station on test at Gabtoli, Dhaka.
February
2009
: Launched CNG conversion workshop at Kalurghat, Chittagong.
March 2009 : Transformed into 1st
public limited company from private limited Company in CNG
sector of Bangladesh.
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35. Risk Factors and Management Perception:
Risk is always associated with any kind of investment. So before taking decision
on investing in the shares of Navana CNG Limited, the investors should carefully analyze the
following risks in addition to the information contained in
the Information Document:
(a) Interest rate risk: Interest rate risk is concerned with borrowed funds of
short term and long-term maturity. Volatility in money market and increased
demand for loans/investment funds raise the rate of interest. High rate of
interest enhances the cost of fund of a Company and squeezes the profit.
Management Perception: Since the NCL has not borrowed fund at flexible rate,
hence, the interest rate risk does not arise.
b) Exchange rate risk: Exchange rate risk relates to the core business of NCL,
since it imports most materials from abroad in foreign currency. The Company
also imports equipment from abroad where foreign currency is involved and
exchange rate can impact such imports.
Management Perception: As foreign currencies are available in money market,
NCL can meet its foreign currency outflows.
c) Industry risk:Like other companies, NCL also suffers from industry risks
arising out of changes in customer choices, fashion and design.
Management Perception: NCL continuously carries out research and development (R&D) to
keep pace with the customer choices, fashion and design.
d) Market & Technology related risk: Technology for a CNG Conversion/Refuelling Company is
being upgraded in the world. Emergence of new technology may cause obsolescence of existing
technology/equipment. So embracing with new technology is essential for ensuring better
services at lower.
Management Perception: NCL is aware of technological changes and has
adopted new technology according to its needs. Further routine and proper
maintenance of the equipment carried out by the NCL ensures longer service
life for the existing equipment and facilities.
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36. e) Potential or existing Government regulations: Like other companies, NCL
operations are affected by potential or existing Government regulations relating
to gas, import, foreign exchange, monetary and fiscal regimes.
Management Perception: Since NCL is a “Green” Company, the Government
regulations are mostly investment-friendly.
f) Potential changes in global or national policies: The performance of the
Company may be affected due to unavoidable circumstances both in Bangladesh and worldwide,
such as war, terrorism, political unrest in the country or customer/supplier countries. Changes in
global or national policies may also adversely affect the economy in general.
Management Perception: The risk due to changes in global or national policies is
beyond control of any Company. Yet NCL has speeded its import from various
countries of the world to reduce the risk. Further, it adopted policies to meet the
challenges from potential changes in global or national policies
g) Non-Operating History: There is no history of non-operation in the case of NCL.
Management Perception: To overcome these uncertainties, the Company has its
own power backup, scientific inventory management and continuous market
promotion systems, which reduce the non-operating risk.
h) Operational Risk: Non-availability of imported materials may affect the smooth operational
activities of NCL. On the other hand, the equipment may face operational and mechanical
failures due to natural disasters, terrorist attacks, unforeseen events, lack of supervision and
negligence, leading to severe accidents and losses
Management Perception: The Company is equipped with power backup system, which reduces
operational risk. Besides, the equipment is under insurance coverage in order to get reasonable
compensation for any damages. Apart from these, routine check and proper maintenance of the
equipment also reduce and eliminate the operational risk
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37. Conclusion:
From the report we have found the full company profile of Navava CNG limited and its mission,
vision, policies, service system, after sale service, financial activities and other business related
key issues. We also found that Navana is a leading CNG business organization in our country.
From the report we also knew about the income and expense sources of the company as we are
authorized to prepare the full company profile this informations helped us to prepare our report.
We have tried our best to make this report and hope that you will approve our report as a team
work.
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