SIX YEAR ANALYSIS

Horizontal Analysis of Statement of Financial Position

The fertilizer market was significantly affected by the pricing interventions and inconsistent
Governmental policies till the end of 2017. Despite turbulent times, the Company not only
managed to stay afloat but exceeded annual and strategic objectives. Performance has been
incrementally improving, reaching unprecedented success. However, the year under view was
challenging as the economy was struggling through multiple challenges emanating from
devastating floods, surging inflationary pressure leading toward monetary & fiscal tightening
along with political instability. Despite all odds, the Company was able to successfully deliver
positive growth momentum mainly due to improved urea sales and also employing cost
controls. Highest ever pre-tax profit was earned, although imposition of super tax by Finance
Act affected the profitability recorded by 2% lower than last year.

Horizontal depreciating local currency and rising

global commodity prices,short term
50.53 billion at the close of 2022, showing
an increase of around 181% since 2017.
Analysis borrowings depicted six yearly growth of

Current Assets
around 30%. Current portion of long-term

Shareholders’ Equity borrowings however depicts a reducing

Shareholders’ equity comprising of share
capital and reserves witnessed the growth
of 73% over the past six years. Although
share capital and capital reserve remained
unaltered during this period, however the
Company’s revenue reserves witnessed
six-year annual average increase of 18%
attributable mainly to higher retention.
trend in line with the movement in long term
borrowings.
Withholding of GIDC consequent to
Court’s ruling in 2015 resulted in consistent
increase in the balance of trade and other
payables from Rs 38.78 billion in 2017
to Rs 89.84 billion in 2022. Classification
of short-term portion of GIDC payable
to current liabilities have increased the
Stores, spares and loose tools have
registered a steady annual average
increase of 13% since 2017.
Stock in trade have increased significantly
from Rs 1.05 billion in 2021 to Rs 19.49
billion 2022, primarily due to slowdown
in downstream demand of fertilizer
which emanats from higher DAP prices,
devastating floods, weak farm economics

Non-Current balance of trade and other payable.

Accordingly, current liabilities increased
and delay in agriculture package by the
Government.
Liabilities from Rs 59.01 billion in 2017 to Rs 161.76
billion at the end of 2022. The Company has maintained a
Non-current liabilities of Rs 27.53 billion
reasonable level of trade debts throughout
depicted a six yearly growth of 5% only,
mainly comprising of long term borrowings, Non-Current Assets the six years’ period, with the exception
of 2019 when high quantum of sales were
deferred liabilities and other long term
Non-current assets, primarily comprising made on credit basis due to depressed
liabilities.
of property, plant and equipment and long market conditions. In FY 2022, despite the
term investments of the Company, have depressed market condition, Company
were high during 2017 mainly due to
increased from Rs 52.75 billion in 2017 to has maintained robust control over trade
payment of previously retained GIDC
Rs 84.30 billion in 2022, strengthening the debts and a significant improvement is
liability. However, decline was witnessed
Company’s asset base. witnessed, whereby the balance of trade
in the subsequent years on account of
receivable has reduced by 55% at Rs 372
healthy operational cash generation by the
Property, plant and equipment (PPE) million, achieving the lowest level since
Company. Last three years depicted an
depicted an average annual growth of 2% 2017.
average annual increase of 40% in long
since 2017 to 2021, whereas during the
term borrowings on account of investment
year while maintaining the sustainability Unadjusted input sales tax and outstanding
in equity investments by the Company.
of its infrastructure, FFC has invested in subsidy receivable from the Government
its PPE including investment in pressure resulted in an annual average growth rate
Deferred liabilities recorded at Rs 3.27
enhancement facilities, depicting an of 14% in other receivables over the six
billion, registered a decrease of 30%
increase of 15% compared to 2021 to Rs years’ period.
compared to 2017; with compensated
27.63 billion as at December 31, 2022.
leave absences remaining fairly constant
As part of FFC’s strategy for diversification, Owing to placement of cash in short term
whereas deferred taxation exhibited six
the Company has diversified significantly investments considering the seasonality
year annual average decrease of 8%.
since 2017 by acquiring an equity stake of of cash availiability and attaractive offering
Long term portion of GIDC payable
30% in Thar Energy Limited (TEL), 100% in on short term investments, the portfolio
amounting Rs 7.94 billion was also
Olive Technical Services (Pvt) Limited and increased considerably to Rs 100.27 billion
classified in non-current liabilities as per
100% & 80% in Foundation Wind Energy by around 3.25 times higher than 2017. On
the guideline of IFRSs.
– I Limited (FWEL-I) and Foundation Wind cumulative basis, current assets increased
Energy – II Limited (FWEL-II) respectively. from Rs 55.89 billion in 2017 to Rs 155.83
Current Liabilities billion in 2022.
Consequently, long term investments
In line with increase in inflationary costs, including investment in PIBs stood at Rs
seasonal nature of cash generation,

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