The document provides information about Fatima Group, a leading business conglomerate in Pakistan. It was founded in 1988 by Mukhtar A. Sheikh and has since expanded into various sectors including textiles, fertilizers, sugar, and others. Key subsidiaries mentioned include Reliance Weaving Mills, Fatima Fertilizers, and Fatima Sugar Mills. Financial information for Fatima Fertilizers for 2013 is also presented, including income statements, balance sheets, key financial ratios, and shareholding patterns.

1. NUML Multan 1 | P a g e
Company Profile
Fatima Group (History)
In 1988 a dynamic and radical person known as Mr. Mukhtar A. Sheikh had
conceptualized his revolutionary vision and laid the stone of a Multan based
organization which commenced its business mainly in Sugar. In subsequent years the
untiring, dedicated and missionary zeal & zest of the founders of group had woven the
net of Companies into glorified 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, Malaises,
Trading, Mining, Power Generation, Air Line and Packing Material etc.
Over the years and by the grace of all mighty Allah the Fatima Group of
Companies now proudly stood unparallel and peerless leader in business groups of
Pakistan. It ranks amongst the top Companies of Pakistan. The group has strong
presence in most important business sectors of the region. It also has the distinction of
being one of the largest players in each sector.
Textile. Reliance Weaving Mills Ltd, the flagship company of the group was
established in 1991. Its annual turnover for the year 2013 is approx Rs. 9 billion with
the production facility of 35,520 spindles (two units) and 296 looms (two units). It is
listed on Karachi & Lahore Stock Exchanges of Pakistan.
Fertilizers. Fatima Fertilizers Ltd is the largest fertilizer complex in Pakistan with
annual production capacity of 847,000 MT. It was put into operation in 1979. Under the
privatization policy of Government of Pakistan, the management of the company was
taken over by Fatima Group on July 14, 2005.
Fatima Fertilizer Company Ltd was incorporated on 24 December 2003 as a
Public Limited Company. Fatima Fertilizer is fully integrated fertilizer complex with
annual production capacity (in MT for the year 2012) of Urea 500,000, CAN 420,000,
NP 244,000, Nitric Acid 500,000 and Amonia 500,000. It is listed on all the Stock
Exchanges of Pakistan.

2. NUML Multan 2 | P a g e
Sugar. Fatima Sugar Mills Limited was incorporated as a public limited company in
1988. Current production capacity is 9,500 MT per day with net profit of Rs. 786
million for the year ended September 2012.
Molasses. Reliance Commodities (Pvt) Limited is a private limited company
incorporated in 1996 and deals in export of molasses, sugar, and other commodities.
Company has earned net profit for the year ended June 30, 2012 of Rs. 862 million.
Fatima Group of Companies.
1. Fatima Energy Limited.
2. Fatima Sugar Mills Limited.
3. Fazal Cloth Mills Limited.
4. Reliance Commodities (Private) Limited.
5. Reliance Weaving Mills Limited.
6. Pakistan Mining Company Limited.
7. Air One (Private) Limited.
8. Arif Habib Corporation.
9. Arif Habib Limited.
10.Arif Habib Investments Limited.
11.Arif Habib REIT Management Limited.
12.Arif Habib DMCC.
13.Aisha Steel Mills Limited.
14.Al-Abbas Cement Industries Limited.
15.Pakistan (Private) Equity Management Limited.
16.Rozgar Microfinance Bank Limited.
17.S.K.M. Lanka Holdings (Private) Limited.
18.Sweet Water Pakistan.
19.Dairies (Private) Limited.
20.Thatta Cement Company Limited.

3. NUML Multan 3 | P a g e
Landmark Events Fatima Fertilizers
Emerging History by Date
Company Incorporation and Gas Allocation.
December 2003 GSA Signing.
September 2004 Ground Breaking Signing of.
July 2005 Contracts Financial Closure.
April 2006 Contracts Achieved.
June - September 2006 Ammonia Furnace 1st Fire.
November 2006 CAN Plant Production Initial.
November 2009 Public Offering Ammonia.
January 2010 Plant Production.
March 2010 Urea Plant Production.
April 2010 NA Plant Production.
April 2012 NP Plant Production.
July 2012 Declaration of Commercial Operations.
May 2013 Conversion and Redemption of Preference Shares.

4. NUML Multan 4 | P a g e
MANAGEMENT AND
ORGANIZATION
Boardof Directors
Mr. Arif Habib - Chairman
Mr. Fawad Ahmed Mukhtar - Chief Executive Officer
Mr. Fazal Ahmed Sheikh - Member
Mr. Nasim Beg - Member
Audit Committee -
Mr. Nasim Beg - Chairman
Mr. Fazal Ahmed Sheikh - Member
Human Resourceand Remuneration Committee
Mr. Nasim Beg - Chairman
Mr. Abdus Samad - Member
Mr. Faisal Ahmed Mukhtar - Member
Mr. Rehman Naseem - Member
Chief Financial Oficer
Mr. Arif Hamid Dar
Company Secretary
Mr. Ausaf Ali Qureshi
Key Management
Mr. M. Abad Khan - Advisor to CEO
Mr. Qadeer Ahmed Khan - Director Special Projects

5. NUML Multan 5 | P a g e
Mr. Muhammad Zahir - Director Marketing
Mr. Haroon Waheed - Group Head of Human Resource
Mr. Farrukh Iqbal Qureshi - General Manager Manufacturing
Mr. Asad Murad - Head of Internal Audit
Mr. Iftikhar Mahmood Baig - General Manager Business Development
Mr. Fuad Imran Khan - Chief Information Officer
Mr. Javed Akbar - Head of Procurement
Brig (R) Muhammad Ali Asif
Sirhindi
- General Manager Administrative Services
Mr. Muhammad Saleem Zafar - General Manager Projects
LegalAdvisors
M/s. Chima & Ibrahim - Advocates, 1-A/245, Tufail Road, Lahore Cantt.
Auditors
A. F. Ferguson& Co.
- Chartered Accountants, 23-C, Aziz Avenue,
Canal Bank, Gulberg V, Lahore.

6. NUML Multan 6 | P a g e
General information
RegisteredName: Fatima Fertilizers (private) limited.
Status: A private limited company having only two partners.
Factory Location: Machi Ghot, Rahim Yar Khan, Pakistan
Brand Name of
Products:
KISAN Urea, KISAN Nitro phosphate & KISAN Calcium
Ammonium Nitrate.
Main Products: Calcium Ammonium Nitrate, Nitro phosphate and Urea
Intermediate products: Ammonia, Nitric Acid, Nitric Acid Crystals.
Factory & Housing area 172 Acres and 130 Acres.
Plants Started: Power Plant June 24, 1978
Ammonia plant Sep 27, 1978
CAN plant Nov 26,1978
Nitric Acid plant Sep11,
1978
Urea plant Oct 01,1978
NP pant Jan12, 1979
Capacities: Ammonia Gas 313500 & CAN
450000 metric tons
Nitric Acid 441600 &
Urea 2400 metric tons
Raw Material
Requirements:
Natural Gas 52.5 M. Cubic feet (per
day)
Rock Phosphate 710 tons
(per day)
Storage capacity: N-P(unbagged) 30000 TONS
Urea (bagged) 12000 tons
Imported Rock 30000 tons
CAN (unbagged) 27000
TONS
CAN (bagged) 5000 tons
Bagging Facilities: 4500 tons per day
Foreign Sources of
Finance:
ADNOC
Asian Development Bank
City Corporation International Bank
World Bank
OPEC Special Fund

7. NUML Multan 7 | P a g e
Vision
To be a world class manufacturer of fertilizers and ancillary products, with a focus on safety,
quality and contribution to national economic growth and development. We will care for the
environment and the communities we work in while continuing to create shareholders’ value.
Mission
• To be the preferred fertilizer company for farmers, business associates and suppliers
through
quality and service.
• To provide employees an exciting, enabling and supportive environment to excel in, be
innovative, entrepreneurial in an ethical and safe working place based on meritocracy and
equal opportunity.
• To be a responsible corporate citizen with a concern for the environment and the
communities we deal with.
Our Initiatives
Farmers Support
We know our long-term success is linked to the success of the thousands of farmers
who grow crops. That’s why we work on-the-ground with farmers and educate them the
proper use of fertilizers to help improve yields.
Our CSR Initiatives
 Mukhtar A. Sheikh Memorial Welfare Hospital A Kidney and
Psychiatric Hospital in Multan
 Total project cost of USD 23 million approximately.
 Free treatment to all workers of EOBI or ESSI.

8. NUML Multan 8 | P a g e
Domestic Fertilizer Market 2013
a) The fertilizer market in 2013, exhibited a mixed trend.
b) The Nitrogen market continued to decline for the third consecutive year.
2013 (2012) MT Mil National
Capacity
Effective
Production
National
Demand
Nitrogen
6.8 (5.9) 4.6 (5.5) 5.7 (6.7)
Phosphate 1.3 (1.0) 10 (10) 1.6 (1.2)
c) Urea off take further shrank by 12% in 2013 from 5.9 million tons to 5.2 million tons,
due to lower acreage on BT cotton, higher prices of urea and weakening of cotton
prices in midyear.
d) Urea demand spurred by yearend following late announcement of support increase for
wheat by the government.
e) Phosphate market for DAP increased by 7% over the year primarily due to increased
volumes in the first half of 2013 ~2013 Rabi season.
f) International prices of fertilizer (DAP) stayed around USD 600 mark for most of the
year.
Operational Performance ~ 2013
a) Year 2013 was challenging but successful.
b) Dehumidification Unit was successfully installed and commissioned at CAN Plant,
enabling ~200 T/Day increase in plant throughput in humid summer season.
c) Reliability of NP plant has considerably improved.
d) As a result of major efforts, consistent improvement in HSE Performance was
noticed. The yearend ‘Total Recordable Injury Rate (TRIR) was 0.22.
e) Company has launched an “Excellence plan” to achieve excellence in all areas of its
operation
f) The ‘Integrated Management System’ (IMS) certification by third party auditors is
planned by end 2013.

9. NUML Multan 9 | P a g e
Ammonia Plant Revam for 1800 MT
a) Revamp study for 1800 MT is now complete.
b) Basic Engineering contract for 1800 MT is being awarded. Detail Engineering
contractors are also being engaged in parallel.
c) Revamp shall be executed in 2015.
d) In view of very attractive payback, Waste gas boiler project at Ammonia Plant is
being done ahead of Revamp study and targeted to complete by Mid of 2014. This
project will boost company profits by lowering Fuel gas bill significantly.
e) Numerous projects in hand to improve reliability and efficiency of the fertilizer
complex, which shall be completed phase wise within next 2~3 years.
Future Outlook
The industry will continue to grapple with the issues like:
a) Gas curtailment in the next year also.
b) This is likely to result in expensive imports again.
c) Capacity within the country continuously lying idle.
d) Continued decline in usage of nitrogenous fertilizer, which will eventually reduce
yields raising the specter of food insecurity.
Earliest possible restoration of gas to the local industry will lead to:
a) Reduction in prices.
b) Foreign exchange saving along with reduced burden of subsidy.
c) Enhanced usage of fertilizers to previous levels at least.
d) Yield improvement to counter food insecurity.
The Company with its unique product portfolio and the growing awareness of the Farming
community is well placed to secure a strong foothold. The continuing marketing, channel,
farmer services and logistics thrusts will drive differentiation and bolster our sales in 2013.

10. NUML Multan 10 | P a g e
Financial Statements
(For the year ending Dec 2013)
Balance Sheet (as at December 31, 2013) (Rupees in thousands)
2013 2012
EQUITY AND LIABILITIES, CAPITAL AND RESERVES
Ordinary shares of Rs 10 each 21,000,000 21,000,000
Preference shares of Rs 10 each 4,000,000 4,000,000
Issued, subscribed and paid up share capital 21,000,000 20,000,000
Ordinary shares of Rs 10 each - 4,000,000
Preference shares of Rs 10 each 1,790,000 790,000
Share premium 6,160,354 3,264,865
Accumulated profit 28,950,354 28,054,865
NON CURRENT LIABILITIES
Long term finance 27,023,742 34,457,218
Dividend & markup payable to related parties 2,917,615 2,217,219
Deferred liabilities 4,841,255 1,807,018
34,782,612 38,481,455
CURRENT LIABILITIES
Trade and other payables 4,996,727 4,650,956
Accrued finance cost 499,478 1,890,932
Short term finance - secured 2,690,246 -
Current portion of long term finance 4,085,379 3,032,833
Provision for taxation - 236,207
CONTINGENCIES & COMMITEMENTS 12,271,830 9,810,928
76,004,796 76,347,248
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 65,882,892 66,827,913
Intangible assets 33,881 -
Capital work in progress 1,662,461 1,287,735
67,579,234 68,115,648
Long term Investments 85,190 -
Long term deposits 11,361 5,481
67,675,785 68,121,129
CURRENT ASSETS
Stores and spares 3,230,805 1,930,679
Stock in trade 2,507,927 1,215,014
Trade debtors 138,480 195,840
Loans, advances, deposits, prepayments and
other receivables 1,467,655 1,045,225
Cash and bank balances 984,144 3,839,361
8,329,011 8,226,119
76,004,796 76,347,248

11. NUML Multan 11 | P a g e
Profit and Loss Account
for the year ended Dec 31, 2013
2013 2012
Sales 29,518,623 14,833,343
Cost of Sales -12,252,427 -4,740,961
Gross Profit 17,266,196 10,092,382
Distribution Cost -1,233,944 -337,946
Administrative Expenses -738,792 -417,225
15,293,460 9,337,211
Finance Cost -5,773,821 -3,063,055
Other Operating Expenses -506,135 -320,398
9,013,504 5,953,758
Other operating Income 67,033 133,810
Profit Before Tax 9,080,537 6,087,568
Taxation -2,969,418 -1,970,593
Profit for the year 6,111,119 4,116,975
Earnings per Share - Basic (in Rupees) 2.86 1.90

12. NUML Multan 12 | P a g e
Pattern of Shareholding
for the year ended Dec 31, 2013
Categories ofShareholders Shares
Held
%
Directors, Chief Executive Officer, and their spouse and
minor children
714,648,874 34.03
Associated Companies, undertakings and related parties 960,091,411 45.72
Executives 645,421 0.03
Public Sector Companies and Corporation 11,515,338 0.55
Banks, Development Financial Institutions, Non Banking
Financial Institutions, Insurance Companies, Takaful,
Modarabas and Pension Funds 87,932,669 4.19
Mutual Funds 17,334,064 0.83
GeneralPublic
Local 223,593,997 10.65
Foreign 787,012 0.04
Foreign Companies 30,330,361 1.44
Others 53,120,853 2.53
Total 2,100,000,000 100.00

13. NUML Multan 13 | P a g e
Financial Analysis
Key Performance Indicators
2013 2012
PROFITABILITY
Gross profit % 58.49 67.77
EBITDA % 55.35 66.48
Operating profit % 50.09 60.79
Profit before tax % 30.76 41.04
Net profit % 20.7 27.75
Return on equity % 21.11 14.67
Return on total assets % 8.04 5.39
LIQUIDITY / ACTIVITY
Current ratio Times 0.68 0.84
Quick / Acid test ratio Times 0.47 0.71
Cash from operations to sales Times 0.24 0.5
Inventory turnover Times 6.58 3.64
Fixed assets turnover Times 0.43 0.22
Total assets turnover Times 0.39 0.2
CAPITAL STRUCTURE
Debt : Equity 52:48:00 57:43:00
Interest cover Times Times 2.57 2.99
INVESTMENT / MARKET
Basic earnings per share Rs 2.86 1.9

14. NUML Multan 14 | P a g e
Balance Sheet - Vertical Analysis
2013 2012
PKR % PKR %
Non-Current Assets
Fixed Capital Expenditure 67,579 88.91% 68,116 89.22%
Deferred Tax Asset -
Long Term Investments 85 0.11% -
Long Term Deposits 11 0.01% 5 0.01%
Total Non-Current Assets 67,676 89.04% 68,121 89.23%
Current Assets
Stores and Spares 3,231 4.25% 1,931 2.53%
Stock-in-Trade 2,508 3.30% 1,215 1.59%
Trade Debts 138 0.18% 196 0.26%
Loans, Advances, Deposits and
Prepayments 1,468 1.93% 1,045 1.37%
Cash and Bank Balances 984 1.29% 3,839 5.03%
Total Current Assets 8,329 10.96% 8,226 10.77%
Total Assets 76,005 100.00% 76,347 100.00%
Share Capital and Reserves
Issued, Subscribed and Paid-up
Capital 21,000 27.63% 20,000 26.20%
Preference Shares - 4,000 5.24%
Share Deposit Money for Ordinary
Shares -
Hedging Reserve -
Share Premium 1,790 2.36% 790 1.03%
Accumulated Profit / (loss) 6,160 8.10% 3,265 4.28%
Total Share Capital and Reserves 28,950 38.09% 28,055 36.75%
Non-Current Liabilities
Long Term Finance 27,024 35.56% 34,457 45.13%
Dividend and Markup Payable to
Related Parties 2,918 3.84% 2,217 2.90%
Deferred Liabilities 4,841 6.37% 1,807 2.37%
Advance against Preference Shares -
Bills Payable -
Total Non-current Liabilities 34,783 45.76% 38,481 50.40%
Current Liabilities
Trade and Other Payables 4,997 6.57% 4,651 6.09%
Accrued Finance Cost 499 0.66% 1,891 2.48%
Short Term Finance Secured 2,690 3.54%
Current Portion of Long Term Loans 4,085 5.37% 3,033 3.97%
Derivative Financial Instruments
Provision for Taxation 236 0.31%
Total Current Liabilities 12,272 16.15% 9,811 12.85%
Total Liabilities and Equity 76,005 100.00% 76,347 100.00%

15. NUML Multan 15 | P a g e
Balance Sheet - Horizontal Analysis
2013 13’ vs 12’ 2012
PKR Change PKR
Non-Current Assets
Fixed Capital Expenditure 67,579 -0.8% 68,116
Deferred Tax Asset - -
Long Term Investments 85 - -
Long Term Deposits 11 107.3% 5
Total Non-Current Assets 67,676 -0.7% 68,121
Current Assets
Stores and Spares 3,231 67.3% 1,931
Stock-in-Trade 2,508 106.4% 1,215
Trade Debts 138 -29.3% 196
Loans, Advances, Deposits and Prepayments 1,468 40.4% 1,045
Cash and Bank Balances 984 -74.4% 3,839
Total Current Assets 8,329 1.3% 8,226
Total Assets 76,005 -0.4% 76,347
Share Capital and Reserves
Issued, Subscribed and Paid-up Capital 21,000 5.0% 20,000
Preference Shares - -100.0% 4,000
Share Deposit Money for Ordinary Shares -
Hedging Reserve -
Share Premium 1,790 126.6% 790
Accumulated Profit / (loss) 6,160 88.7% 3,265
Total Share Capital and Reserves 28,950 3.2% 28,055
Non-Current Liabilities
Long Term Finance 27,024 -21.6% 34,457
Dividend and Markup Payable to Related Parties 2,918 31.6% 2,217
Deferred Liabilities 4,841 167.9% 1,807
Advance against Preference Shares - - -
Bills Payable - - -
Total Non-current Liabilities 34,783 -9.6% 38,481
Current Liabilities
Trade and Other Payables 4,997 7.4% 4,651
Accrued Finance Cost 499 -73.6% 1,891
Short Term Finance Secured 2,690 -
Current Portion of Long Term Loans 4,085 34.7% 3,033
Derivative Financial Instruments
Provision for Taxation -100.0% 236
Total Current Liabilities 12,272 25.1% 9,811
Total Liabilities and Equity 76,005 -0.4% 76,347

16. NUML Multan 16 | P a g e
Profit and Loss Account - Vertical Analysis
2013 2012
PKR Million % PKR Million %
Sales 29,519 100% 14,833 100%
Cost of sales -12,252 -42% -4,741 -32%
Gross Profit 17,266 58% 10,092 68%
Distribution cost -1,234 -4% -338 -2%
Administrative expenses -739 -3% -417 -3%
Finance cost 15,293 52% 9,337 63%
Other operating expenses -5,774 -20% -3,063 -21%
-506 -2% -320 -2%
9,013 31% 5,954 40%
Other operating income 67 0.20% 134 0.90%
Profit Before Tax 9,081 31% 6,088 41%
Taxation -2,969 -10% -1,971 -13%
Profit for the year 6,111 21% 4,117 28%
Profit and Loss Account - Horizontal Analysis
2013
Change
2012
PKR Million PKR Million
Sales 29,519 99% 14,833
Cost of sales -12,252 158% -4,741
Gross Profit 17,266 71% 10,092
Distribution cost -1,234 265% -338
Administrative expenses -739 77% -417
15,293
64%
9,337
Finance cost -5,774 88% -3,063
Other operating expenses -506 58% -320
9,013 51% 5,954
Other operating income 67 50% 134
Profit Before Tax
9,081
49%
6,088
Taxation -2,969 51% -1,971
Profit for the year 6,111 48% 4,117

17. NUML Multan 17 | P a g e
Profitability Ratios
1. GP Margin. Gross Profit / Sales
Calculation 2013 2012
17,266,196 / 29,518,623
= 58.49%.
10,092,382 / 14,833,343
= 68.04%
Interpretation. The Decrease in GP Margin is less comparing to year 2012
indicates that Financial Costs have increased.
2. Operating Profit. EBIT (fin cost+ EBT) / Sales
Calculation 2013 2012
14,854,358 / 29,518,623
= 50.32%.
9,150,623 / 14,833,343
= 61.69%
Interpretation. The Decrease of 10% in Operating profit is due to increase in
Finance Cost and other expenses.
50
55
60
65
70
2013 2012
GP Margin
GP Margin

18. NUML Multan 18 | P a g e
3. Profit before Tax. EBT / Sales
Calculation 2013 2012
9,080,537 / 29,518,623
= 30.76%.
6,087,568 / 14,833,343
= 41.04%
Interpretation. The Decrease in Profit before tax comparing to Sales shows that
the financial Cost and Operating Expenses have increased more than year 2012.
4. Net Profit Margin. Net profit after tax / Net Sales
Calculation 2013 2012
6,111,119/ 29,518,623
= 20.70%.
4,116,975/ 14,833,343
= 27.75%
Interpretation. The Decrease of 10% in Operating profit is due to increase in
Finance Cost.
0
20
40
60
80
2013 2013
O.P
O.P
0
10
20
30
40
50
2013 2012
PBT
PBT

19. NUML Multan 19 | P a g e
5. Return On Equity. Net Income / Total Equity
Calculation 2013 2012
6,111,119/ 28,950,354
= 21.11%.
4,116,975/ 28,054,865
= 14.67%
Interpretation. There is no major increase/ change in the Equity but the Net
Income has increased by 7%.
6. Return On Total Assets. Net Income / Total Assets
Calculation 2013 2012
6,111,119 / 76,004,796
= 8.04%
4,117,000 / 76,347,000
= 5.39%
Interpretation. The Decrease of 10% in Operating profit is due to increase in
0
5
10
15
20
25
30
2013 2012
NPM
NPM
0
5
10
15
20
25
2013 2012
ROA
ROA

20. NUML Multan 20 | P a g e
Finance Cost and other expenses.
Liquidity/Activity Ratios
7. Current Ratios. Current Assets / Current Liabilities
Calculation 2013 2012
8,329,011 / 12,271,830
= 0.68 Times.
8,226,119 / 9,810,928
= 0.84 Times.
Interpretation. The Liabilities have decreased by 1.6 Times than the last year. A
Good sign of company as they have increased their Assets and reduced the liabilities.
8. Quick Ratios. Current Assets —Inventory / Current Liabilities
Calculation 2013 2012
[8329011 – (3230805 + 2507927)] / [8226119 – (1930679 + 1215014)] /
0
2
4
6
8
10
2013 2012
ROA
ROA
0
0.2
0.4
0.6
0.8
1
2013 2012
C.A
C.A

21. NUML Multan 21 | P a g e
12,271,830
= 0.21 Times
9,810,928
= 0.52 Times
Interpretation. The Assets have decreased in year 2013, but on other hand the
increase in liabilities indicate that the company has good business in year 2013. The
increase in Inventory also shows increase in the production.
9. CashRatio. Cash / Current Liabilities
Calculation 2013 2012
984,144 / 12,271,830
= 0.08 Times
3,839,361/ 9,810,928
= 0.39 Times
Interpretation. The Decrease in Cash reflects that more money has been
invested in the business and the production has increased.
10. Inventory Turn Over. CGS / Inventory
Calculation 2013 2012
12,252,427 / 5,738,732
= 2.14 Times
4,740,961/ 3,145,693
= 1.51 Times
Interpretation. The Increase in CGS indicates that the production is more by
0
0.5
1
1.5
2
2.5
3
2013 2012
Quick Ratio
Quick Ratio
0
0.1
0.2
0.3
0.4
0.5
2013 2012
Cash Ratio
Cash Ratio

22. NUML Multan 22 | P a g e
0.63 times than 2012. The Business has expanded.
11. Fixed AssetTurn Over. Sales/Fixed Assets
Calculation 2013 2012
29,518,623 / 67,675,785
= 0.44 Times
14,833,343 / 68,121,129
= 0.22 Times
Interpretation. There is very marginal change in the Fixed Assets but the Sales
has doubled in year 2013.
12. TotalAssetTurn Over. Sales/Total Assets
Calculation 2013 2012
29,518,623 / 76,004,796
= 0.39 Times
14,833,343 / 76,347,248
= 0.19 Times
0
0.5
1
1.5
2
2.5
2013 2012
Inventory Turnover
Inventory Turnover
0
0.1
0.2
0.3
0.4
0.5
2013 2012
FA Turnover
FA Turnover

23. NUML Multan 23 | P a g e
Interpretation. Sales have doubled and there is marginal increase in the Total
Assets.
13. A/R Turnover. Sales/ Acct Receivables
Calculation 2013 2012
29,518,623 / 138,480,000
= 0.21 Times
14,833,343 / 195,840,000
= 0.08 Times
Interpretation. Sales have increased and on the other hand there is substantial
change of 0.13 times in the A/R. This shows that Credit Sales have decreased and Cash
Sales have increased.
Capital Structure ratios
14. Debt To TotalAssets. Total Debt / Total Assets
Calculation 2013 2012
0
0.1
0.2
0.3
0.4
0.5
2013 2012
TTA Turnover
TTA Turnover
0
0.05
0.1
0.15
0.2
0.25
2013 2012
A/R Turnover
A/R Turnover

24. NUML Multan 24 | P a g e
47,054,442 / 76,004,796
= 61.91%.
48,292,383 / 76,347,248
= 63.25 %.
Interpretation. The Debts have decreased by 1.34% which shows that company
is focusing on decreasing the debts.
15. Interest Coverage Ratio. EBIT / Interest Liabilities
Calculation 2013 2012
EBT + Fin Cost =
EBIT
14,854,358 / 5,773,821
= 2.57 Times
9,150,623 / 3,063,055
= 2.99 Times
Interpretation. The Interest Liabilities and EBIT have increased due to
substantial Increase in the production and overall business.
16. Debt To Equity. Debt : Equity
Calculation 2013 2012
47,054,442 / 28,950,354
= 162.53 %
48,292,383 / 28,054,865
= 172.14%
61
61.5
62
62.5
63
63.5
2013 2012
DTA
DTA
2.2
2.4
2.6
2.8
3
3.2
2013 2012
IC Ratio
IC Ratio

25. NUML Multan 25 | P a g e
Interpretation. Due to the focused orientation of the company the Debts have
reduced by 10.39%. This shows a Positive trend in the company’s future.
Investment/ Market Ratio
17. Basic Earnings PerShare Ratio. Net Income / No Of Shares
Calculation 2013 2012
6,111,119 / 2,100,000
= Rs 2.91
4,116,975 / 2,100,000
= Rs 1.96
Interpretation. The Profit on Share has increased by Rs 0.95 per Share. This
shows a Positive trend in the Company and the production and sales comparing to last
year have increased manifolds.
155
160
165
170
175
2013 2012
DTE
DTE

26. NUML Multan 26 | P a g e
0
0.5
1
1.5
2
2.5
3
3.5
2013 2012
EPS
EPS

27. NUML Multan 27 | P a g e
SWOT Analysis
1. STRENGTHS
a) Capital Intensive nature of the sector.
b) The players operating in this sector are financially strong.
c) All the fertilizer plants are producing at more than 100 percent installed capacity
of utilization.
d) Govt supports in the form of subsidy.
e) Cheap labor.
f) Heavy demand.
g) Well established distribution sector.
h) An agro based economy.
i) Broad range of main and mid products.
j) Central location of plant.
k) Broad production range.
l) Monopoly in Calcium Ammonium Nitrate & Nitro Phosphate production Support
from Ministry.
m) Experience in production and marketing of product.
2. WEAKNESSES
a) Low capacity as compared to demand (demand supply gap).
b) Due to existence of black market and heavy demand farmers had to pay above
the stated price.
c) Technological backwardness and Lack of local resources.
d) Urea made by Fatima is of more powdered form as compared to the urea made by
FFC and other urea producers.
e) Obsolete plant with high operating cost.
f) Govt. compellations especially for the pricing policy.
g) Monetary sensitiveness to foreign exchange exposure.
h) Dependence on imported feed stock suppliers and special repair/ maintenance
facilities.
i) Environmental problem & proximity to urban area.
j) Limitation in achieving NITROPHOSPHATE product quality, design
specifications.

28. NUML Multan 28 | P a g e
k) Too much centralization effects timely decision making.
l) Unsatisfactory Product quality of urea.
m) No proper sales promotion.
n) Placement and number of warehouses.
o) Lack of long term planning, decisions are made keeping in view the short-term
benefits.
p) Lack of financial budgets for implementation at decisions.
q) Too much cost consciousness that affects the long run impact and profits.
3. OPPORTUNITIES
a) As the demand is high compared to supply, fertilizer sector has an opportunity to
expand capacity to fulfill the local demand.
b) Export.
c) Introduction of BT crops.
d) Improvement in product quality.
e) Expansion of plants to meet the demand more efficiently.
f) Proper sales promotion.
g) Proper placement or warehouses.
h) Delegation of authority so that decisions can be made at the spot without any
delay.
i) Long term profits or benefits should be preferred over short-term profits. Quality
should be improved gradually with the results and trends in market.
4. THREATS
a) Scarce water resources.
b) Load-shedding of gas.
c) Hike in fuel prices.
d) Taxes.
e) Removal of subsidy.
f) Rising global prices of fertilizer products.
g) Government intervenes to stabilize the prices.
h) Low product quality of competitive product (urea) is a major threat
i) Major competitors are FFC, ENGRO CHEMICALS and DHC.
j) Market share threat for Urea.

29. NUML Multan 29 | P a g e
NFC FFC ENGRO
25-26%
48% 24-25%
a) In market the 50-kg bag of Fatima is sold at rs.330 while engro and dhc at
rs.360sell that bag but even they are more effective.
b) Fatima Fertilizer is giving almost negligible incentives to the customers while ffc
and engro are running efficient promotional schemes to attract the customer.
c) Fatima Fertilizer is also lagging behind in providing the product at the right time
and place customer has to wait 3 to 4 days to load be second truck while at the
warehouses of ffc and engro-chemical customer immediately gets the product- so
the placement of warehouses is a threat. Neml has 6 warehouses in Multan region
while fec has 16 warehouses in that region.
d) The packaging of ffc is also better than Fatima.
e) Imported fertilizers are also a threat to local industry selling at rs.310 in the
market for a 50kg bag.

30. NUML Multan 30 | P a g e
PESTEL ANALYSIS
PoliticalTrend.
a) Political trends are always in favor of this industry. The Government has provided
incentives under Fertilizer Policy, 2001, to encourage fertilizer production in the
country.
b) To fulfill local demand of fertilizers at affordable prices, the Government is providing
subsidy on production and import of fertilizers.
c) Investors will be allowed to relocate second hand plant, equipment and machinery,
with the same concession/ exemption as applicable to new plants.
d) The Government is providing concessionary feed stock gas to the fertilizer plants for
production of urea.
e) Import of Rock Phosphate and Phosphorous by manufacturers of fertilizer is free
of customs duty.
f) Tax relaxation has also been offered by the Government.
g) Export benefit to suppliers of capital goods for new/ modernization projects
of fertilizer.
h) Gas price has been fixed for 10 years for new investments.
i) Gas for balancing, modernization, replacement expansion for existing plants has been
filed for 7 years.
EconomicalTrend:
a) One of the main sectors of economy is Agricultural as it contributes 22% to the GDP
and without Fertilizer industry this sector would not able to work. Due to that
Government always gives support to the fertilizer industry.
b) Import by manufacturers of Rock Phosphate and Phosphorous of fertilizer Free
of customs duty.
c) Tax relaxation has been offered in order to attract new entrants
d) Export benefit to suppliers of capital goods for new/modernization projects
of fertilizer. To reduce the dependence on imported fertilizers by enhancing the local
production capacity.
e) The Government is providing subsidy on production and import of fertilizers. A
massive subsidy of Rs. 27 billion in the supply of urea and DAP in 2009.

31. NUML Multan 31 | P a g e
f) Ban on export of fertilizer is also imposed so that economic stability would be gain.
SocialTrends:
a) Although the adverse effects of this industry is very high because of the improper
handling of the waste. Due to this, many diseases like asthma, kidney diseases,
hepatitis etc... are caused. Still, the usage of the fertilizers cannot be stopped because
it gives farmers so much ease in terms of saving time and actually, using it. Making
bio fertilizer has now become Old usage and farmers don’t prefer to use it against
artificial fertilizer.
TechnologicalTrend:
a) To meet the demand of fertilizers in the country through indigenous production, self-
reliance in design engineering and execution of fertilizer projects is very crucial. This
requires a strong indigenous technological base in planning, development of
b) This requires a strong indigenous technological base in planning, development
of process know-how, detailed engineering and expertise in project management and
execution of projects.
c) The fertilizer plant operators have now fully absorbed and assimilated the
latest technological developments, incorporating environmental friendly process
technologies, and are in a position to operate and maintain the plants at their optimum
levels and on international standards in terms of capacity utilization, specific energy
consumption & pollution standards. The average performance of gas-based plants in
the country today is amongst the best in the world.
d) The fertilizer industry is also carrying out de-bottlenecking and energy saving scheme
in their existing plants and to enhance the capacity and reduce the specific energy
consumption per ton of product. Companies are also planning to convert to Liquefied
Natural Gas (LNG).
LegalTrend:
a) Strengthening the Fertilizer Review Committee.
b) Rationalization of quotas to private marketing organizations.
c) Setting up of transport sub-agencies.
d) Replacement of volumetric bagging machines at Port Karachi by weight baggers, to
ensure accuracy.

32. NUML Multan 32 | P a g e
e) Drafting and enactment of fertilizer legislation to provide a legal framework within
which marketing agencies and dealers should operate in a privatized system.
f) Pursuing low-cost storage options in high consumption areas, and purchasing off-
season at a discount.
g) Postponing widespread custom blending until inland bulk handling is practiced.
Environmental Trend:
a) Chemical fertilizer in the form of salts, when added to soils gets converted into ionic
forms after dissolving in the soil solution. They are relatively safer than pesticides
which exhibit toxic properties on living systems. However, all the quantities
of fertilizers applied to the soil are not fully utilized by plants. About 50 per cent
of fertilizers applied to crops are left behind as residues. Though, inorganic fertilizers
are not directly toxic to man and other life forms, they have been found to upset the
existing ecological balance. The nutrients escape from the fields and are found in
excessive quantities in underground water, rivers, lakes and coastal waters.
b) Fertilizers can become a source of pollution when they are used in excess. Among the
three macro (N-P-K) fertilizers being used at present, only potassium fertilizer is not
yet considered a source of environmental pollution. The other substances like nitrogen
(urea or calcium ammonium nitrate) and phosphorus (DAP or MAP) fertilizers, if
used unreasonably, can cause environmental pollution and mainly through increase
of nitrate in agricultural products, drinking water, entropication of water sources and
increase of cadmium.
c) Another hazard associated with excessive use of nitrogenous fertilizers is the gaseous
loss of nitrogen, into the atmosphere. High doses of carbon dioxide and ammonia that
escape into the atmosphere both from fertilizer manufacturing plant sand soils affect
human health. Further the oxides of nitrogen have been reported to adversely affect
the ozone layer.
d) The oxides of nitrogen cause respiratory diseases like asthma, lung cancer and
bronchitis.
e) Cadmium accumulation in agricultural products is also an important problem
of pollution. Cadmium exposures result in kidney damage, bone deformities, and
cardiovascular problems.

33. NUML Multan 33 | P a g e
Recommendations
1. Strict quality control and monitoring should be there to prevent import of sub-
standard products and to curb adulteration and other malpractices prevailing in this
sector.
2. The problem of logistics should be looked into. Transportation through railway (being
cheaper) especially during peak seasons should be made available.
3. There is a need to educate the farmers on balanced fertilizer use so as to neutralize the
adverse impacts of constant use of nitrogenous fertilizers.
4. Fatima fertilizers are giving almost negligible incentives to the customers while FFC
and ENGRO are running efficient promotional schemes to attract the customer.
Fatima Fertilizers should give more incentives to the customers.
5. Fatima fertilizers should develop more ware houses to early provision of fertilizers to
the customers.
6. The packaging should be improved to compete with the other companies in the field.
7. The staff should be decreased to avoid unnecessary extra expenditures on Pay and
allowances.
8. Short and bare minimum documentation should be made to provide easiness and
comfort to the customers.

34. NUML Multan 34 | P a g e
Reference
 www.fatima-group.com
 www.slideshare.net/index/annual-report-fatima-fertilizer
 www.kse.com.pk
 En.wikipedia.us/Fatima-fertilizer-company-limited/