Project: Financial Management

Topic:
Financial statement & Ratios &Common Analysis & Index
Analysis of Fatima Fertilizers Ltd.

Submitted to: Maam Ghzal Akash.

Reg # 168-FMS/BSAF/S18
Submitted by: Aqsa Khalid.

International Islamic University Islamabad

CONTENT:

o Chapter: 1
 Introduction of Fatima Fertilizer group
o Chapter: 2
 Financial Statement
o Chapter: 3
 Ratios Analysis
 Common Analysis
 Index Analysis
 Chart
Introduction of Fatima Fertilizer Company Ltd
Company:
 

Industry Chemical Manufacturing

Sector Basic Materials
Employees 2392
Equity Type ORD
Fatima Fertilizer Company Limited is a Pakistan-based fertilizer manufacturing company,
Fatimafert Limited is the wholly owned subsidiary of Fatima Fertilizer Company Limited,
and a renowned name in Pakistan’s fertilizers Industry selling Urea under the leading brand
name of “Bubber Sher” for local cultivation. Fatimafert Limited is also the leading
importer of DAP, marketed extensively across Pakistan. A dynamic and radical person
known as Mr. Mukhtar A. Sheikh conceptualized his revolutionary vision and laid the stone
of a multi dimensional organization which commenced its business mainly in sugar. In
subsequent years the untiring, dedicated and missionary zeal & zest of the founders of
group woven the net of Companies into galaxy of shining Stars and named it Fatima
Group. The substantial Strategic benefits of vertical integration led him and his associates
to consider venturing into the manufacturing field of Textile, Sugar, Fertilizers, Molasses,
Trading, Mining, Power Generation & Transmission, Air Line and Packaging.

Over the years and by the grace of almighty Allah the Fatima Group of
Companies proudly stood unparalleled and peerless leader in business groups of
Pakistan. It ranks amongst the top Business Groups of Pakistan. The group has strong
presence in most important businesses of the region. It also has the distinction of being
one of the largest plays in each sector. The Group has are makeable position in the
market as good as any multination also perating locally in terms of its quality of
products, services andmanagementskills.

The Complex has a 56MW captive power plant in addition to off-sites and utilities.
The Complex has been allocated 110 MMCFD of gas from the dedicated Mari Gas
fields.Foundation stone was laid on April 26, 2006 by the then Prime Minister of Pakistan.
The construction of the Complex commenced in March 2007 and is housed on 950 acres of
land. The Complex, when completed, is designed to produce:
 500,000 Metric Tons of Urea per Annum

 420,000 Metric Tons of Calcium Ammonium Nitrate (CAN) per Annum

 360,000 Metric Tons of Nitro Phosphate (NP) per Annum

The Complex, during its construction phase engaged over 4,000 engineers and technicians
from Pakistan, China, USA, Japan and Europe. The Complex provides modern housing for
its employees with all necessary facilities. This includes a school for children of employees
and the local community, a medical centre and sports facilities. The Company is listed on
Pakistan Stock Exchange, through a successful initial public offering (IPO) in February
2010. 200 million ordinary shares were offered to the public bringing the issued Share
Capital from 1,800 million to 2,000 million shares.

Nature of Working
Fatima Group has worked its way to success by working together as a team. Now deal in

 Fertilizer
 Sugar
 Trading
 Textile
 Mining
 Energy

Following are the companies responsible for our business operations

 Fatima Fertilizer Limited

 Pakarab Fertilizers Limited

 Reliance Weaving Mills Limited

 Fatima Sugar Mills Limited

 Reliance Commodities (Private) Limited

 Fatima Energy Limited

 Pakistan Mining Company Limited

The group has a vision to further diversify its scope of business and looks forward to start
its business operations overseas to make a mark around the globe. We have already started
working in USA for our fertilizer division. In near future we hope to see Fatima Group as a
recognized business entity in the world. 
SERVICES& PRODUCT

 Intermediate products

Ammonia
Nitric Acid
Final products
Urea,
 Calcium Ammonium Nitrate (CAN),
 Nitro Phosphate (NP) and
Nitrogen Phosphorous Potassium (NPK)

Balance Sheet
Total Current Assets 2018 2017
Cash and Short Term Investments 1340.7 1030.2
Cash 717.43 832.09
Short Term Investments 623.27 198.11
Total Receivables, Net 14035.63 10422.91
Accounts Receivables - Trade, Net 2564.52 1930.63
Total Inventory 12324.45 10103.41
Prepaid Expenses 334.98 173.44
Other Current Assets, Total 75.12 87.7
Total Assets 128208.3 117660.5
Property/Plant/Equipment, Total – Net 91718.71 86704.8
Property/Plant/Equipment, Total – Gross 106710.6 98129.51
Accumulated Depreciation, Total -14991.91 -11424.71
Intangibles, Net 5978.75 5938.39
Long Term Investments 145.8 85.95
Note Receivable - Long Term 1999.33 2999
Other Long Term Assets, Total 254.82 114.74
Total Current Liabilities 31570.08 23381.4
Accounts Payable 8049.37 5811.23
Accrued Expenses 3984.74 3576.84
Notes Payable/Short Term Debt 5494.8 2116.67
Current Port. of LT Debt/Capital Leases 7630.94 7140.72
Other Current liabilities, Total 6410.23 4735.94
Total Liabilities 55430.68 52015.54
Total Long Term Debt 8376.58 13751.62
Long Term Debt 8376.58 13751.62
Total Debt 21502.32 23009.01
Deferred Income Tax 14666.82 14234.36
Other Liabilities, Total 817.21 648.16
Total Equity 72777.61 65645
Common Stock, Total 21000 21000
Additional Paid-In Capital 1790 1790
Retained Earnings (Accumulated Deficit) 50087.61 42899.05
Unrealized Gain (Loss) -4.15 -1.24
Other Equity, Total -95.85 -42.82
Total Liabilities & Shareholders' Equity 128208.3 117660.5

income Statement
Total Revenue 51309.99 45371.16
Revenue 51309.99 45371.16
Cost of Revenue, Total 25639.38 26685.58
 Gross Profit 25670.62 18685.57
Total Operating Expenses 34519.68 35250.87
Selling/General/Admin. Expenses, Total 6105.85 5273.63
Depreciation / Amortization 149.56 78.45
Interest Expense (Income) - Net Operating 1565.49 2073.71
Unusual Expense (Income) -1.51 -3.79
Other Operating Expenses, Total 1060.92 1143.29
Operating Income 16790.31 10120.29
Net Income Before Taxes 16790.31 10120.29
Provision for Income Taxes 4876.75 852.34
Net Income After Taxes 11913.56 9267.94
Net Income Before Extraordinary Items 11913.56 9267.94
Net Income 11913.56 9267.94
Income Available to Common Excluding Extraordinary Items 11913.56 9267.94
Diluted Net Income 11913.56 9267.94
Diluted Weighted Average Shares 2100 2100
Diluted EPS Excluding Extraordinary Items 5.67 4.41
DPS - Common Stock Primary Issue 1.75 2.25
+
Diluted Normalized EPS 5.67 4.41
     

RATIO Analysis:

Current Ratio:
The current ratio is a liquidity ratio that measures whether or not a firm has enough
resources to meet its short term obligations. It compares firms current assets to its current
liabilities.
Current ratio formula:
Current ratio=Current assets/Current liabilities
2018 0.89
2017 1
 1.02
1
0.98
0.96
0.94
0.92
0.9
0.88
0.86
0.84
0.82
1 2

Quick Ratio:
The quick ratio is a financial ratio used to gauge a company's liquidity. The quick ratio is
also known as the acid test ratio. The quick ratio compares the total amount of cash +
marketable securities + accounts receivable to the amount of current liabilities.

2018 0.51
2017 0.57

0.58
0.57
0.56
0.55
0.54
0.53
0.52
0.51
0.5
0.49
0.48
1 2

Debt to Equity Ratio:

The debt-to-equity (D/E) ratio is calculated by dividing a company's total liabilities by its
shareholder equity. These numbers are available on the balance sheet of a company's
financial statements. The ratio is used to evaluate a company's financial leverage.

2018 11.51%
2017 55.98%

60.00%

50.00%

40.00%
Debt To Asset Ratio:
30.00% Total liabilities divided by
total assets or the
debt/asset ratio shows the
20.00%
proportion of a company's
assets which are financed
10.00% through debt. If the ratio is
less than 0.5, most of the
0.00% company's assets are
1 2 financed through equity. If
the ratio is greater than 0.5,
most of the company's
assets are financed through debt.

2018 29.55%
2017 116.5%
 140.00%

120.00%

100.00%

80.00%

60.00%

40.00%

20.00%

0.00%
1 2

Asset Turn Over Ratio:

The asset turnover ratio is calculated by dividing net sales by average total assets. Net
sales, found on the income statement, are used to calculate this ratio returns and refunds
must be backed out of total sales to measure the truly measure the firm's assets' ability to
generate sales.
2018 0.42
2017 0.88

1
0.9
0.8
0.7
0.6
0.5
0.4

0.3
0.2
0.1
0
1 2
Inventory Turnover Ratio:
The inventory turnover ratio is calculated by dividing the cost of goods sold for a period by
the average inventory for that period. Average inventory is used instead
of ending inventory because many companies' merchandise fluctuates greatly throughout
the year.
2018 2.36
2017 5.54

0
1 2

Receivable Turnover Ratio:

Accounts receivable turnover is calculated by dividing net credit sales by the average
accounts receivable for that period. Average receivables is calculated by adding the
beginning and ending receivables for the year and dividing by two.
2018 0.42
2017 0.88
 6

0
1 2

Gross profit Margin Ratio:

Gross profit margin is calculated by subtracting cost of goods sold (COGS) from total
revenue and dividing that number by total revenue. The top number in the equation, known
as gross profit or gross margin, is the total revenue minus the direct costs of producing that
good or service.
2018 50.03%
2017 30%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
1 2
Net Profit Margin Ratio:
The profit margin ratio formula can be calculated by dividing net income by net sales. Net
sales is calculated by subtracting any returns or refunds from gross sales. Net income
equals total revenues minus total expenses and is usually the last number reported on the
income statement.

2018 49%
2017 33%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
1 2

Return on Equity Ratio:

The return on equity (ROE) ratio tells you how much profit the company can earn from
your money. The formula is this one: ROE Ratio = Net Income/ Shareholder's Equity. This
ratio tells you how much money the company earns on an investor's dollar. The higher the
ROE ratio, the higher the profitability.

2018 17%
2017 28%
 35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
1 2

Return on Asset Ratio:

The return on assets ratio formula is calculated by dividing net income by average total
assets. This ratio can also be represented as a product of the profit margin and the total
asset turnover. Either formula can be used to calculate the return on total assets.
2018 11.2%
2017 10.29%

11.40%

11.20%

11.00%

10.80%

10.60%

10.40%

10.20%

10.00%

9.80%

9.60%
1 2

Return on Investment Ratio:

The basic formula for ROI is: ROI = Net Profit / Total Investment * 100. Keep in mind that
if you have a net loss on your investment, the ROI will be negative. Shareholders
can evaluate the ROI of their stock holding by using this formula: ROI = (Net Income +
(Current Value - Original Value)) / Original Value * 100.

2018 0.42
2017 0.88

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
1 2

Index Analysis Balance Sheet

  2018 2017 index Analysis current year-Base year/ Bas
year
Total Current Assets      
Cash and Short Term Investments 1340.7 1030.2 1240.7
Cash 717.43 832.09 617.43
Short Term Investments 623.27 198.11 523.27
Total Receivables, Net 14035.63 10422.91 13935.63
Accounts Receivables - Trade, Net 2564.52 1930.63 2464.52
Total Inventory 12324.45 10103.41 12224.45
Prepaid Expenses 334.98 173.44 234.98
Other Current Assets, Total 75.12 87.7 -24.88
Total Assets 128208.29 117660.5 128108.29
Property/Plant/Equipment, Total - Net 91718.71 86704.8 91618.71
Property/Plant/Equipment, Total - Gross 106710.62 98129.51 106610.62
Accumulated Depreciation, Total -14991.91 -11424.7 -15091.91
Intangibles, Net 5978.75 5938.39 5878.75
Long Term Investments 145.8 85.95 45.8
Note Receivable - Long Term 1999.33 2999 1899.33
Other Long Term Assets, Total 254.82 114.74 154.82
Total Current Liabilities 31570.08 23381.4 31470.08
Accounts Payable 8049.37 5811.23 7949.37
Accrued Expenses 3984.74 3576.84 3884.74
Notes Payable/Short Term Debt 5494.8 2116.67 5394.8
Current Port. of LT Debt/Capital Leases 7630.94 7140.72 7530.94
Other Current liabilities, Total 6410.23 4735.94 6310.23
Total Liabilities 55430.68 52015.54 55330.68
Total Long Term Debt 8376.58 13751.62 8276.58
Long Term Debt 8376.58 13751.62 8276.58
Total Debt 21502.32 23009.01 21402.32
Deferred Income Tax 14666.82 14234.36 14566.82
Other Liabilities, Total 817.21 648.16 717.21
Total Equity 72777.61 65645 72677.61
Common Stock, Total 21000 21000 20900
Additional Paid-In Capital 1790 1790 1690
Retained Earnings (Accumulated Deficit) 50087.61 42899.05 49987.61
Unrealized Gain (Loss) -4.15 -1.24 -104.15
Other Equity, Total -95.85 -42.82 -195.85
Total Liabilities & Shareholders' Equity 128208.29 117660.5 128108.29

Index Analysis income statement

  2018 2017 index Analysis current year-Ba
Total Revenue 51309.99 45371.16 51209.99
Revenue 51309.99 45371.16 51209.99
Cost of Revenue, Total 25639.38 26685.58 25539.38
Gross Profit 25670.62 18685.57 25570.62
Total Operating Expenses 34519.68 35250.87 34419.68
Selling/General/Admin. Expenses, Total 6105.85 5273.63 6005.85
Depreciation / Amortization 149.56 78.45 49.56
Interest Expense (Income) - Net Operating 1565.49 2073.71 1465.49
Unusual Expense (Income) -1.51 -3.79 -101.51
Other Operating Expenses, Total 1060.92 1143.29 960.92
Operating Income 16790.31 10120.29 16690.31
Net Income Before Taxes 16790.31 10120.29 16690.31
Provision for Income Taxes 4876.75 852.34 4776.75
Net Income After Taxes 11913.56 9267.94 11813.56
Net Income Before Extraordinary Items 11913.56 9267.94 11813.56
Net Income 11913.56 9267.94 11813.56
Income Available to Common Excluding Extraordinary Items 11913.56 9267.94 11813.56
Diluted Net Income 11913.56 9267.94 11813.56
Diluted Weighted Average Shares 2100 2100 2000
Diluted EPS Excluding Extraordinary Items 5.67 4.41 -94.33
DPS - Common Stock Primary Issue 1.75 2.25 -98.25
Diluted Normalized EPS 5.67 4.41 -94.33
X