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Many thanks Waqas Ali Tunio. Mr. Tunio is having diverse exposure to diverse industries including the
topnotch MNCs. Currently he works at FFBL in tandem with operating his own business of corporate and
professional trainings in the field of Project Management. He has been my best professional friend and Pir
Bhai as well. This work reflects his contribution and cooperation. Gratitudes again!

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(Page numbers labeled as per pdf count)

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Fauji Fertilizer Bin Qasim Limited Plant site is a modern Granular Urea and Di-Ammonium Phosphate
(DAP) fertilizers manufacturing complex, built at a cost of US$ 468 Million and located in Eastern Zone
of Bin Qasim, Karachi, with Head Office at Harley Street, Rawalpindi.
Initially named as FFC-Jordan Fertilizer Company (FJFC), w.e.f 17th Nov 1993, with FFC (30%), FF
(10%) and JPMC (10%) as main sponsors. The company was formally listed with stock exchanges in
May 1996 and commercial production commenced w.e.f Jan 2000. However, it continued to run in crises
due to technical, financial and managerial reasons till 2001. DAP Plant brought to suspension in 2001 due
to accumulated loss of Rs. 6.5 Billion. It resumed production in Sep 2003, after a lapse of 2 years.
Renamed as Fauji Fertilizer Bin Qasim Ltd. (FFBL) in 2003, as such Jordan Phosphate Mines Co.
(JPMC) had sold its entire equity in the company. Accordingly Phosphoric acid supply agreement with
Jordan was terminated. The company turned out to be profitable after 3 years i.e. by 2004 and declared
'maiden dividend' in 2004. Profitability has constantly been on the rise since then and 2007 has been the
most profitable year of the company. One of the milestones in the success of FFBL is its accreditation of
ISO certification, which was achieved in Mar 2006 for both the Head Office and Plant site.
FFBL is the only fertilizer complex in Pakistan producing DAP fertilizer and Granular Urea thus making
significant contribution towards agricultural growth of the country by meeting 45% of the demand of
DAP and 13% of Urea in domestic market.

To be a premier organization focused on quality and growth, leading to enhanced stakeholders value.

FFBL is committed to remain amongst the best companies by maintaining the spirit of excellence through
sustained growth rate in all activities, competitive price, quality fertilizer and providing safe and
conducive working environment for the employees.

Information not given by the company!

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CHIEF EXECUTIVE &


MANAGING DIRECTOR
Lt Gen Muhammad Haroon Aslam,
HI(M), S.Bt, (Retired)
Company Secretary
Brig Muhammad Azam, SI(M), (Retd)
CFO & General Manager Finance
Syed Aamir Ahsan
General Manager Plant
Mr. Anwar Mehmood Shahid
General Manager Technology
Mr. Mukarram Mirza

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Head Supply Chain Management


Brig. Imtiaz Ahmed, SI (M), (Retd)
Divisional Manager (Project)
Brig Nasrullah Khan, SI(M), (Retd)
Divisional Manager (Business Excellence)
Brig Shahid Afzal, SI(M), (Retd)
Senior Manager (Human Capital Management)
Brig Pervez Khalid, SI (M), (Retd)
Head of Internal Audit
Mr. Wasim Ejaz

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Doing a trend analysis calls for referring to Profit & Loss Accounts of the company. Therefore, the
accounts have been reproduced here for reference purpose.

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From the above comparative accounts (2011-2014) we learn that FFBL has the following major
categories of Revenue and Expenses.
Revenue:

Sales (Urea and DAP)

Major Expense Categories:

Selling & Distribution Expenses


Administrative Expenses
Interest Expenses (Finance Cost)
Other Operating Expenses
Tax Expenses

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The Excel Table below shows the extracted figures of selected accounts from the above Profit & Loss
Accounts (Refer to Separate Word File to see Expense Breakups). The table gives a tabular form of
trend over a period of 4 years i.e. 2011 through 2014. The table is followed by the graphical
representation of the trend.

Note: 1 = 2011 , 2 = 2012 , 3 = 2013 , 4 = 2014

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Revenue Trend (Rs 000)

Explanation: Its depicted that the sales (of Urea and DAP) declined during 2011-12. This

decline is attributed to the drastic effects of heavy rains in August 2010 followed by
unprecedented floods throughout the country. Sales rebounded during 2012-13, but plunged
again in 2014. The fertilizer sector performance during 2014 has been moderate considering the
difficult operating environment emanating from severe gas restrictions and curtailments to the
fertilizer plants. The profit margins have further decreased due to enhancement in Gas
Infrastructure Development Cess (GIDC).
Sales Promotion/Advertising Expense Trend (Rs 000)

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Explanation: Given difficult operating environment first due to natural disasters, and second due

to governments restrictive initiatives, FFBL kept spending more and more on sales promotion
and advertising in newspaper and television.

Warehousing Expense Trend (Rs 000)

Explanation: Following disastrous and calamitous situation previous years, the company reduced

the production of Urea and DAP; hence reduced warehousing expenses. But later, as the
company recovered a little bit, it increased the production which drove the warehousing expenses
up.
Salaries, Wages & Benefits Exp Trend (Rs 000)

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Explanation: As FFBL intakes new and new employees, and as it gives increments and raises in

salaries, wages and benefits; the overall trend is hence increasing. Another reason being the
increase in the minimum wage in Pakistan.

Utilities Expense Trend (Rs 000)

Explanation: The trend is increasing due to increased use of Utilities, plus, due to increased

utility prices overtime.

Interest Expense Trend (Rs 000)

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Explanation: The initial hike in interest expenses as depicted is a result of Companys poor

liquidity position and poor working capital management (esp. cash) during the period which
propelled financing costs. In later years (2012-2014), owing to better liquidity position, the
Company resorted to less utilization of working capital lines bringing 39% decline in Companys
finance cost during the period.

Other Operating Exp Trend (Rs 000)

Explanation: No reason(s) provided.

Tax Expense Trend (Rs 000)

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Explanation: The tax expense trend depicts exactly the same trend as the sales do.

Increase/decrease in sales caused the increase/decrease in EBT during the years 2011 through
2014. Hence, the tax is dependent upon EBT.

Website:
http://www.ffbl.com.pk/
Facility:
Fauji Fertilizer Bin Qasim Limited
Plot No. EZ/I/P-1 Eastern Zone, Port Qasim,
Karachi 75020.
Phone: (021)34724500-29, 34750706-10
Fax: (021)34750704,34724530
Email: info@ffbl.com
Annual Reports and Financial Statements of FFBL
Meetings with Contact Person and Reference:
Waqas Ali Tunio
Planning Engineer
Fauji Meat Limited
(A subsidiary of Fauji Fertilizer Bin Qasim Limited)
Eastern Zone | Bin Qasim | Karachi, Pakistan | 75020
Mob: 92 314 7512473 | Tel: 92 21 34724500-529 | Ext.: 5398
Fax: 92-21-34724530-531

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