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Table of Content

Description

Page No.

1. Introduction

01

2. Mission

02

3. Vision

03

4. Role of Safety Section

03

5. Company Policy and Objective

05

6. Management

05

7. Marketing

06

8. Human Recourses

08

9. Financial Reporting Section

09

10. Decision Making

12

11. Planning

13

12. Services provided to Customer

14

13. ISO Certification

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FAUJI FERTILIZERS COMPANY


1- Introduction
With a vision to acquire self - sufficiency in fertilizer production in the
country, FFC was incorporated in 1978 as a private limited company. This
was a joint venture between Fauji Foundation (a leading charitable trust in
Pakistan) and Haldor Topsoe A/S of Denmark.
The initial authorized capital of the company was 813.9 Million Rupees. The
present share capital of the company stands at Rs. 3.0 Billion. Additionally,
FFC has Rs. 1.0 Billion stakes in the subsidiary Fauji Fertilizer Bin Qasim
Limited (formerly FFC-Jordan Fertilizer Company Limited).
FFC commenced commercial production of urea in 1982 with annual
capacity of 570,000 metric tons.
Through De-Bottle Necking (DBN) program, the production capacity of the
existing plant increased to 695,000 metric tons per year.
Production capacity was enhanced by establishing a second plant in 1993
with annual capacity of 635,000 metric tons of urea.
FFC participated as major shareholders in a new DAP/Urea manufacturing
complex with participation of major international/national institutions. The
new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan
Fertilizer Company Limited) commenced commercial production with effect

from January 01, 2000. The facility is designed to produce 551,000 metric
tons of urea and 445,500 metric tons of DAP.
This excellent performance was due to hard work and dedication of all
employees and the progressive approach and support from the top
management.
In the year 2002, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL)
Urea Plant situated at Mirpur Mathelo, District Ghotki from National
Fertilizer Corporation (NFC) through privatisation process of the
Government of Pakistan.
This acquisition at Rs. 8,151 million represents one of the largest industrial
sector transactions in Pakistan

Mission
FFC's mission is to sustain its role as the leader in industrial and agricultural
advancement of Pakistan by setting and achieving new and higher goals and
taking initiatives. The Company is committed to ensuring safe and
conducive work environment, providing high quality products and allied
services to its customers and profitable returns to its shareholders.

Vision
FFC is focused on harmonizing its capabilities and maximizing its potential.
FFC's vision for the future envisages diversification and undertaking
ventures at home and abroad in collaboration with leading international
partners.

Role of Safety Section


Description
Safety section of FFCL performs various functions and activities for running
an effective safety program.
Managing Safety Program
Main object is to plan, organize, budget, and track execution of activities to
achieve safety objectives of our plant laid down in company safety policy
(Annex-I). Through prudent planning and effective resource management
we cater for all the needs of personal and process safety.
Motivation
Management is committed to achieve excellence in the field of safety. All
projects related to safety are given top priority and good safety and
housekeeping standards are appreciated through token rewards.
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Plant Safety Policy


Fauji Fertilizer Company recognizes the significance of maintaining an
injury free environment at plant and therefore must strive to avoid any injury
to personnel and any damage to equipment etc. In order to achieve this,
Management spells out the plant safety policy and expects all employees to
comply.
1.

The management shall always remain strongly committed to the cause

of safety.
2.

Safety shall be given at least the same importance as production.

3.

Safety shall have a due consideration in performance appraisal of each

employee.
4.

Management believes that God willing most accidents can be

prevented since most of them are caused by human errors and omission.
5.

As and when an accident occurs, the investigation shall be carried out

on high priority.
6.

The company shall provide safety training and facilities to all

employees, whereas working safely is the condition of employment.


7.

Adequate personal protective shall be provided to employees against

hazards at plant
8.

and full compliance shall be demanded.

The Management shall formulate safety regulations / procedures while

employees shall comply with these regulations and procedures.


9.

The contractors shall also follow Company's safety discipline.

10.

A good standard of housekeeping shall be maintained at the plant.

11.

Off-The-Job safety shall be promoted among employees and their

families.
12.

Employees are expected to maintain pollution free environment and

hygienic conditions throughout the plant.

Company Policy and Objective

Management is committed to cause of safety. It is everyone's


responsibility.

Our objective is to improve the working culture through effective


safety program.

Zero lost work day is the target.

Management

Chief Executive and Managing Director


Lt.

Gen.

Chief

Malik

Arif

Hayat,

HI(M)

Financial

Officer

Manager

Marketing

(Retired)

Mr. Abid Maqbool


General

Mr. Asad Sultan Chaudhry


General

Manager

Manufacturing

&

Operations

Mr. Zafar Hadi


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General

Manager

Technology

&

Engineering

Plant

(Goth

Machhi)

(Mirpur

Mathelo)

Syed Iqtidar Saeed


General

Manager

Mr. Tahir Javed


General

Manager

Plant

Mr. Naeem-ur-Rehman
Company

Secretary

Brig. Khalid Kibriya (Retired)

Marketing
Marketing Division, setup in July, 1978 is responsible for all marketing
operations including planning, distribution, sales, farm advisory services,
field warehousing, finance and administration. With the commencement of
commercial production in June 1982, the company started marketing its urea
under the brand name "Sona".
The company markets not only Sona urea but also imported nitrogen,
phosphate
and
potash
based
fertilizers.
The Company is also marketing half a million tonnes of sona urea granular
manufactured by Fauji Fertilizer Bin Qasim (formerly FFC Jordan
Fertilizer
Co.
Ltd).
When FFC came into the market with its production in June 1982, the other
manufacturers namely Engro, Dawood Hercules and National Fertilizer
Corporation were already well established in the market. The brands of
Engro (Engro) and Dawood Hercules (Babber Sher) were considered
premium brands in Sindh and Central Punjab respectively. FFC had to face
very tough competition from the beginning. This competition coupled with
the huge surplus of urea in the domestic market posed a great challenge to
the company in the initial years. FFC not only met the challenge by
capturing the desired market share but in the process, enhanced the brand
image of its product Sona urea which has become the number one brand.
During the period 1983 to 1986 when a large urea surplus existed in the
country, FFC pioneered urea exports which not only helped in stabilizing
domestic urea but also earned valuable foreign exchange for the country.
The Government of Pakistan deregulated the trade and prices of phosphatic
fertilizers on 21 August 1993. Subsequent to this decision FFC started
import of these fertilizers and as a result timely supplies were arranged.
Farmers were thus provided with quality product in bags with guaranteed
correct weight and this brought about a very positive qualitative change in
the phosphatic fertilizer business in the country. The Marketing Division
now has the necessary expertise to handle fertilizer imports and exports.
FFC believes in selling a programmed rather than just a product. For this,
the company has adopted a customer oriented strategy, marketing quality
products backed by efficient and effective support services with emphasis on
developing the market through practical and innovative farmer education.
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Human Recourses
The FFC Management, acknowledging the importance of human resources
has always placed personnel management at the top of its priority list. The
Human Resources Department, therefore, right from the inception of the
Company has played a vital role in steering the Company through all its
phases, operations and progress.
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The functions of Human Resources Department vis-a-vis personnel


management and human resources development are going side by side and it
is due to the progressive approach and dynamic philosophy of the
management that Personnel Management remains abreast with the latest
style of management ensuring high level of motivation and satisfaction of
the work force under varied situations. Personnel policies are kept updated
and are periodically modified to respond to the latest socio-economic
changes
and
market
trends
of
the
country.
Hiring quality manpower, keeping them happy, satisfied and motivated are
the pillars of the Human Resources Department; justice, fair play and merit
oriented treatment are some of the ingredients of processing cases by the
Human
Resources
Department.
For Human Resource development, another aspect which receives its due
share is training. The employees are exposed to various kinds of cross
training, technical courses, management courses, workshops and seminars
both at home and abroad. At Plant site, the Company has a Technical
Training Centre, which is unique, and the only centre in Asia having a true
replica of the Plant for providing realistic training as far as possible, to the
employees.
Employees' welfare has all along received due consideration by the
Management. A number of agreements have been signed with CBA Workers
Union, resulting in handsome remuneration packages to employees. The
company, since its inception, has undertaken five salary revisions for
Management employees, to remain amongst the top paying organizations of
the country. It is due to the sheer sincerity, welfare oriented policies and
concern for every single employee that there has never been any strike, lock
out or go slow in FFC.

Financial Reporting Section


Financial Reporting means to present the Financial Statements according the
rules and International Financial Reporting Standards (IFRS). All the
financial Statements are prepared on the basis of IFRS. , Income Statement,
Balance Sheet, Cash Flow Statement, Statement of Changes in Equity Goal
of presenting useful information to financial statement users so that proper
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decisions can be made. Data presented should be comprehensive so that a


good understanding of the entity's activities is possible. Financial
information should aid in the evaluation of the amounts, timing, and
uncertainties of cash flows. Also, financial reporting should furnish
information about the firm's economic resources, claims against those
resources, owners' equity, and changes in resources and claims. Financial
reporting should provide information about financial performance during a
period and management's discharge of its stewardship responsibility to
owners. It should likewise be useful to the managers and directors
themselves in making decisions on behalf of the owners.
Debit and Credit Advice
Debit Advice is sent to the party. It is like a Claim form the party to whom
FFC provide services. When this party makes payment the FFC maintain its
a/c Payment will be received through Cheque. When receive payment the
entry made as: i.e. FFC providing services to Engro. FFC-MM has current
account in head office and marketing division Lahore. They send debit
advice and credit advice to FFC -MM they have debited certain amount to
their account.
Current Account Balance Confirmation
When Trial Balance is finalized by FR Section and send to H.O. then a letter
is sent to the head office by the FR department to confirm the balance of the
current account of H.O. Then H.O replied to the letter received from FFC
and also sends marketing division Lahore for balance confirmation.
Trial Balance
Trial balance is the final document prepared at FFC-GM finance department.
the trail balance is prepared in oracle (based accounting )all the software
vouchers recorded in oracle by various sections of the finance department
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are posted by the book keeping section during through month following
documents are posted
Monthly trial balance is prepared which is sent to the head office for the
preparation of final account; the detail of every account in the trail balance is
viewed through control account.
Monthly Progress Reports
To provide input to C&R section, book keeping section collect all the
information of general accounting section for the month, compile it and
forward to c and r section before 15th of each month.
Assistance of External Auditor
Book keeping section also provides assistance to the review half yearly
account in June and final audit in December of every year.
Final Record
Book keeping section also keeps record of all the audit files prepared in cash
years with records of the general ledger/cost criteria ledger/ schedules for
reference purpose.
To provide input to C and R section, book keeping section collect all the
information of general accounting section for the month ,compile it and
forward to c and r section before 15th of each month.

Quantitative Data

2009 2008 2007 2006 2005 2004

Sona Urea Production


Sona Urea Sales

(000 Tones)
2,464 2,322 2,320 2,296 2,303 2,174
2,464 2,342 2,298 2,293 2,304 2,291

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Decision Making
In FFC decision making done by the team work. Leaders consult with
individual or group subordinates, obtaining their ideas and opinion, and then
make the decision.
While doing decision making FFC identifying and diagnosing the problems
or facts or both, generalizing the alternatives, choosing best alternative and
after implication evaluation the results.

Generating
alternative
solutions

Evaluating
Alternative

Choosing
best
alternative

Implication
Decision

Evaluating
results

Identify
and
diagnosing
problem

FFC decision making some times very lightly affected by organizational


politics, emotions and personal preferences but FFC management quickly
overcome on it due to good controlling.

Planning
In FFC planning through by a proper channel and it take a long time. When
they plan something, they started their planning from the beginning of year
and almost taking one year on research and other precaution and facts
relating to their planning they implied what they planed.

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In their planning there is a proper channel/ sequence which we mentioned


above.

Services Provided to Customers


FFC provided to their customers technical and mechanical services.
With this Fauji Fertilizer Company Limited has been providing Agricultural
Advisory Services to the farming community throughout Pakistan since
1981, for increasing the agriculture production in general and the farmers
economic returns in particular. FFC in pursuit of its national commitment
and moral obligation maintains regular contact with farmers and Agricultural
Institutions to ensure constant and efficient transfer of latest technology

ISO Certifications
Sr. No
01
02
03

Certificate Name
ISO-9001:2000
ISO 14001:1996
OHSAS 1800:1999

Brief Description of Certification


Quality Management System
Environmental Management System
Occupational
Health
&
Safety
Assessment System

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