Professional Documents
Culture Documents
Final Fertilizer Report
Final Fertilizer Report
Adnan Athar
(MB-13-45)
Shahid Hussain (MB-13-17)
Saddam Hussain (MB-13-67)
Arslan Saeed
(MB-13-44)
INTRODUCTION
Page 1
Pakistan is an agricultural country, where agriculture is not only feeding a huge and even
increasing population but also is a backbone of Pakistan economy contributing about
23% to national economy. However, most of the agricultural practices are conventional
with less use of technology due to small land holdings, unawareness, and limited
resources of farmers. Imbalanced use of fertilizers is among major issues of Pakistan
agriculture decreasing crops yields and profit margin for famers. Awareness about the use
of nitrogen and phosphorus is enough and farmers are using according to their economic
resources, although not according to crop demand and soil analysis. Deficiency of
micronutrients such as zinc (Zn) and boron (B) has also been observed in different crops.
In aerobic rice cultivation B deficiency has been reported and application of B in these
conditions has decreased the sterility of rice panicles. Furthermore, micronutrient
deficiency in human diets has also emphasized the application of micronutrients for
biofortification of staple crops with special consideration for Zn and iron (Fe). Use of
micronutrients such as Zn and B have also been observed for selected crops since last
decade, but the use of potassium (K) is still neglected, although K is macronutrient and
more than 40% soils are considered K deficient.
Potassium is crucial for three important functions: enzyme activation, charge balance and
osmotic regulation in the higher plants. Potassium is the most abundant macronutrient in
most Pakistani soils. But the presence of a huge amount of K in the soil does not fulfill
plants requirements because a large amount of the K is fixed by clay minerals present in
these soils and is not available to achieve optimum plant growth. Inadequate K
fertilization is among the factors responsible for crop yield gaps in many parts of the
world, especially in developing countries. Potassium sorption on exchange sites and its
fixation depend on the physicochemical properties of the soil, as well as the type and
content of the clay minerals.
The major natural source of soil K is the weathering of K-containing minerals such as
micas and alkali feldspars, which contain 6-9 and 3.5-12% K, respectively. The age of
soil developed from such minerals determines the extent of weathering as well as the K
dynamics. While taking up K, plants reduce its concentration in the immediate vicinity of
roots, which releases K-ions from the minerals. High yielding crop genotypes and
Page 2
intensive use of agricultural land decreased the available K contents in the soil as
compared early eightys, because addition of K fertilizer to soils was negligible whereas
the removal was more which is very dangerous for sustainable agriculture in Pakistan.
Continuity of this negligence will lead to high input agriculture farming which will be
very tough to pursue due to poor resource farmers having small land holdings.
Comparing other important macronutrients N and P, K has different behavior in soil. N
and P are not majorly achieved from clay minerals rather external sources are utilized to
feed the plants in fields. Therefore, it is more critical for K to formulate correct K
fertilizer recommendations and get response from crops.
Page 3
farmers, extension workers and policy makers about the significance of K fertilizers use
for food security future generations and quality produce combating the environmental
issues.
Precise recommendation of K is also required to attract the famers towards more
profitable agriculture. The release of K converts micas to secondary 2:1 clay minerals illite and then vermiculite. In such soils not only plant available K contents are reduced,
but applied K fertilizers are also more prone to be fixed by soil minerals and become
slowly available for plants. The fate of K fertilizer also depends on the age of the soil;
application of K fertilizer to soils containing illite and vermiculite clay minerals leads to
fixation of some of its fraction by soil particles. The fixed K may become available to
plants by its release from soil particles into soil solution when the concentration of K in
the soil falls, but in most cases this release is too slow to meet the plant-growth
requirements.
Page 4
FAC-Shahkot
FAC-Bahawalnagar
FAC-Mandi Bahaudin
FAC-Muzaffargarh
FAC-Sukkar
In conclusion FFC is very clear that farmers advisory services are very critical to improve
their economic returns, therefore a comprehensive advisory system is working in a much
disciplined way.
Page 5
VISION:
To be a leading national enterprise with global aspirations, effectively pursuing multiple
growth opportunities, maximizing returns to the stakeholders, remaining socially and
ethically responsible.
MISSION:
To provide our customers with premium quality products in a safe, reliable, efficient and
environmentally sound manner, deliver exceptional services and customer support,
maximizing
PRODUCT PORTFOLIO:
Urea Fertilizer FFC & FFBL:
Used in grain and cotton crops, at the time of last cultivation before planting. In irrigated
crops, urea can be applied dry to the soil. During summer, it is often spread just before rain to
minimize losses from vitalization process. Urea produced by FFBL is in Granular form,
being the only of its kind in Pakistan. Industrial Use Raw material in manufacture of plastics,
adhesives and industrial feedstock.
DAP Fertilizer FFC & FFBL:
Sona DAP is the most concentrated phosphatic fertilizer containing 46% P2O5 and 18%
Nitrogen. The solubility of DAP is more than 95%, which is highest among the
phosphatic fertilizers available in the country. Further, on account of its nitrogen content,
it temporarily increases the soil pH. Industrial Use Fire retardant used in commercial
firefighting products. Other uses are as metal finisher, yeast nutrient, nicotine enhancer in
cigarettes and sugar purifier.
Page 6
Page 7
Construction work on the Individually Quick Freeze (IQF) Plant of Fauji Fresh n Freeze,
is progressing as per plan with scheduled inauguration during 2015.
SUMMERY (FFC)
BALANCE SHEET as at December 31, 2014
Rupees(000)
EQUITY AND LIABILITIES
2014
2013
2012
2011
2010
EQUITY:
Share capital
12,722,38
12,722,382
12,722,382
8,481,588
6,785,271
Capital reserves
Revenue reserves
2
160,000
12,483,58
160,000
12,258,373
160,000
12,877,129
160,000
14,029,206
973,083
9,522,587
Surplus on re-measurement of
5
303,564
10,508
7,695
10,258
25,669,53
25,151,263
25,767,206
22,681,052
17,280,941
2,500,000
4,574,028
7,074,028
4,280,000
4,078,369
8,358,369
3,870,000
3,915,259
7,785,259
2,703,750
3,623,060
6,326,810
7,708,608
7,671,871
15,380,479
CURRENT LIABILITIES
Trade and other payables
37,904,43
21,854,125
16,125,589
12,329,68
17,481,446
4
30,117
11,602,443
1,780,000
22,098
7,000,000
1,460,000
24,921
4,990,000
1,433,750
79,826
8,735,650
1,615,655
294,063
11,293,144
1,967,877
2,501,109
53,818,10
3,983,215
34,319,438
4,542,926
27,117,186
3,762,236
26,523,054
648,201
3,663,165
3
86,561,66
67,829,070
60,669,651
55,530,916
74,016,862
LIABILITIES
borrowings
Taxation
Page 8
Asset:
NON - CURRENT ASSETS:
Property, plant and equipment
Intangible assets
Long term investments
Long term loans and advances
Long term deposits and
20,093,898
1,611,204
28,134,520
823,188
15,624
18,444,188
1,651,592
20,662,532
740,408
2,654
17,818,755
1,678,639
9,511,865
700,786
5,111
17,050,951
1,569,234
8,659,073
605,883
9,370
30,971,029
1,569,234
5,503,123
455,328
97,351
50,678,434
41,501,374
29,715,156
27,894,511
38,288,132
3,314,823
981,750
822,460
1,058,754
26,376
1,072,461
27,432,837
1,173,767
35,883,228
3,244,645
301,957
700,541
921,460
37,225
799,922
18,960,295
1,361,651
26,327,696
3,098,938
442,139
3,611,476
677,977
35,670
588,667
18,750,996
3,748,632
30,954,495
2,447,452
636,923
86,669
431,582
53,852
891,673
21,794,480
1,293,774
27,636,405
4,235,495
1,482,387
1,187,941
557,575
64,170
856,429
13,270,581
14,074,152
35,728,730
86,561,662
67,829,070
60,669,651
55,530,916
74,016,862
prepayments
CURRENT ASSETS :
Stores, spares and loose tools
Stock in trade
Trade debts
Loans and advances
Deposits and prepayments
Other receivables
Short term investments
Cash and bank balances
TOTAL ASSETS
Page 9
FFC
PROFIT AND LOSS ACCOUNT
for the year ended December 31, 2014
Rupees(000)
Sales
Cost of sales
GROSS PROFIT
Distribution cost
Finance cost
Other expenses
Other income
Share in profit of equity
accounted investments
NET PROFIT BEFORE
TAXATION
Provision for taxation
NET PROFIT AFTER
TAXATION
Earnings per share
2014
81,240,187
50,136,749
31,103,438
6,431,667
24,671,771
848,940
2,302,937
21,519,894
4,720,866
2013
74,480,611
39,948,572
34,532,039
6,167,280
28,364,759
756,215
2,557,937
25,050,607
4,367,941
2012
122,251,581
74,774,403
47,477,178
9,224,547
38,252,631
2,691,660
3,251,369
32,309,602
2,429,728
71,576
2011
111,111,913
56,625,023
54,486,890
7,731,516
46,755,374
1,824,471
3,831,447
41,099,456
3,228,875
409,077
2010
88,154,698
55,103,948
33,050,750
7,286,329
25,764,421
2,001,355
2,086,563
21,676,503
1,635,389
193,430
26,240,760
29,418,548
34,810,906
44,737,408
23,505,322
8,070,000
18,170,760
9,284,000
20,134,548
12,317,707
22,493,199
16,096,233
28,641,175
8,456,139
15,049,183
14.28
15.83
Page 10
FFC
FINANCIAL ANALYSIS
2014
2013
2012
2011
2010
Profitability Ratios
Gross profit ratio
38.29
46.36
48.47
62.20
43.60
22.37
27.03
28.07
40.73
24.58
35.61
42.74
44.99
63.64
41.43
70.79
80.05
80.96
99.17
71.40
Return on assets
29.68
34.38
40.50
25.61
Liquidity Ratios
Current ratio
Times
0.67
0.77
1.14
1.04
0.86
Times
0.59
0.66
1.01
0.93
0.73
Times
0.28
0.38
0.61
0.38
0.32
Times
148
188
152
162
283
Times
0.94
1.10
1.23
0.99
1.04
Times
4.04
4.04
4.15
3.24
2.82
14.28
15.83
16.40
17.68
8.67
8.20
7.07
7.14
8.46
14.52
11.99
13.77
12.29
16.51
14.24
9:91
15:85
13:87
10:90
20:80
Times
%
Page 11
2013
2012
2011
2010
12,722
12,722
12,722
8,482
12,429
13,045
14,199
25,151
25,767
22,681
4,280
3,870
2,704
29,431
29,637
25,385
4,078
3,915
3,623
18,444
17,819
17,051
41,501
29,716
27,895
(7,992)
3,836
1,114
5,298
7,830
14,603
74,481
74,323
55,221
34,532
36,023
34,349
28,365
30,469
29,977
6,785
Reserves
12,948
8,662
25,670
15,447
2,500
3,819
Capital employed
28,170
19,266
Deferred liabilities
4,574
3,807
20,094
15,934
50,679
25,837
(17,935)
(2,764)
2,117
7,830
81,240
44,874
Gross profit
31,103
19,564
Operating profit
24,672
15,620
Page 12
26,241
29,419
31,052
33,166
20,135
20,860
22,492
16,310
Profit after tax
18,171
11,029
17.68
14.28
8.67
Page 13
15.83
FFC
Horizontal Analysis (B/S)
Assets
Non-Current assets:Property plant and Equipment
Intangible assets
Long term Investment
Long term loans and advances
Long term Advances and pre-payments
Current Assets:Store Spares and lose tools
Stock in trade
Trade debts
Loans advances
Deposits and pre-payments
Other Receivables
Short term investment
Cash and bank balance
Total Assets
Equity And Liabilities
Share Capital
Capital Reserve
Revenue Reserve
Total Equity
Liabilities
Noncurrent Liabilities
Long term Borrowings
Deferred Taxation
Current liabilities
Trade and other payables
Accrued interest
Short term borrowing
Current Portion Of Long term Borrowings
Taxation
Total Liabilities
Total Liabilities & Equity
2014
2013
2012
2011
26.11
2.68
257.50
80.88
77.77
96.50
15.75
5.29
200.75
62.64
-66.67
60.63
11.83
7.01
20.86
54.46
6.17
15.01
7.01
10.03
33.19
7.96
35.86
360.21
129.6
251.8
-48
73.4
128.28
-1.26
108.34
101.03
33
95.81
174.11
-6
27.83
189.64
57.74
14.55
52.87
57.52
27
108.49
908.66
101.78
-28
-4.69
56
215.30
79.72
40.89
0.29
200.47
-75.7
28.57
10
44.34
81.31
8.83
60.47
28.96
87.50
50.14
66.18
87.50
44.31
62.82
87.50
51.19
66.81
25.01
65.13
46.83
-345
20.14
7.24
12.07
28.13
9.59
1.34
2.84
2.08
-29.2
-4.83
-17.03
320.08
-78.26
105.69
1.19
-27
169.26
101.03
124.20
-84
24.09
-17
16.29
71.71
57.50
77.54
-81.89
-11.54
-18.48
32.20
35.67
40.89
36.65
-42.03
54.87
-8.13
9.81
32.71
28.96
FFC
Vertical Analysis (B/S)
Share Capital
2014
%
14.70
2013
%
18.76
2012
%
20.97
2011
%
15.27
2010
%
15.76
Capital reserve
Revenue Reserve
0.18
14.77
0.24
18.09
0.26
21.24
0.29
25.28
0.37
19.74
Total equity
Non-current liabilities
Long term borrowings
Deferred liabilities
29.66
37.08
42.47
40.84
35.87
6.31
6.01
6.38
6.45
4.87
6.52
2.89
5.28
Page 14
8.87
8.84
Current liabilities
Trade and other payables
8.17
43.79
0.03
13.40
wings
Taxation
Total Liabilities & Equity
2.06
100.00
12.32
12.83
11.39
17.71
26.58
0.04
22.20
0.14
20.95
0.32
10.32
8.22
15.73
13.10
2.15
100.00
2.36
100.00
2.91
100.00
4.09
100.00
32.22
0.03
23.21
27.19
29.37
30.69
37.00
Intangible assets
Long term investments
1.86
32.50
2.44
30.46
2.77
15.68
2.83
15.59
3.64
18.28
1.16
0.01
1.09
0.02
1.06
0.02
26.64
0.29
(18.59)
0.95
0.02
1.09
0.00
2.16
4.71
Stock in trade
Trade debts
225.17
17.26
(31.67)
(80.59)
(30.61)
4,050.57
200.47
(75.70)
47.22
39. 30
14.98
(44.68)
35.70
44.69
35.84
30.56
34.13
1.12
56.94
(34.55)
(33.97)
(13.97)
28.57
10.00
44.34
81.31
158.46
31.58
(15.80)
77.60
(13.80)
27.62
(63.67)
189.72
11.80
8.83
9.25
(69.11)
28.96
11.69
FFC
HORIZONTAL AND VERTICAL ANALYSIS
2013
2012
2011
Sale
81.04
65.98
65.62
23.06
Cost of sale
98.09
57.84
51.32
-17.53
Gross profit
58.98
76.51
84.13
75.57
Distrbution Cost
63.05
56.36
40.82
10.85
57.95
81.59
95.06
91.91
Finanace Cost
-21.89
-34.55
-8.09
-27.69
Other Expense
67.37
85.9
95.20
92.95
Page 15
63.56
90.4
103.57
101.69
Other Income
49.73
38.53
35.36
110.28
60.88
80.37
90.39
103.35
Tax
52.81
75.34
92.99
102.12
64.76
82.56
89.14
103.94
Vertical Analysis:2014
2013
2012
2011
2010
Sale
100
100
100
100
100
Cost of sale
61.71
53.64
51.53
37.80
56.40
Gross profit
38.29
46.36
48.47
62.20
43.60
Distrbution Cost
7.92
8.28
7.47
7.92
8.79
30.37
38.08
41
54.29
34.81
Finanace Cost
1.05
1.02
1.34
1.42
2.42
Other Expense
2.83
3.43
3.61
4.81
3.07
26.49
33.63
36.04
48.05
29.32
Other Income
5.81
5.86
5.74
12.01
7.03
32.30
39.50
41.78
60.06
36.35
Tax
9.93
12.46
13.71
19.33
11.77
22.37
27.03
28.07
40.73
24.58
2. ENGRO FERTILIZERS:
ENGRO chemical Pakistan limited is the second largest producer of urea fertilizer in
Pakistan and the company was incorporated in 1965. ENGRO is a public limited
company listed on the stock exchanges of Karachi, Lahore and Islamabad. The company
has gone from strength to strength, reflected in its consistent and enviable financial
performance, growth of core fertilizer business and successful business diversification
into fields. Its performance and outlook is following the declared vision.
To be the premier Pakistani enterprise with a global reach, passionately pursuing value
creation for all stake holders
Mission Statement:
Page 16
To help farmers maximize their farm produce by providing quality plant nutrients
ENGRO Fertilizers Limited is one of the leading fertilizer manufacturer and marketer in
Pakistan and has been in this business for the past forty years. ENGRO Fertilizers
Limited has successfully developed a loyal customer base all across Pakistan, not only by
providing farmer community with quality fertilizer but also through extensive market
development activities. Following is the list of primary and secondary fertilizers that we
market.
Engro Urea
Engro DAP
Engro Zorawar
Engro Zarkhez (contains N, P and K)
Zingro (Zinc)
ENGRO holds a vast nationwide production and marketing infrastructure and produces
leading fertilizer brands optimized for local cultivation needs and demand. ENGRO
Fertilizers Limited enjoys loyal customer base across Pakistan owing to its trusted
fertilizer brands and continual farmer assistance in training and education. Agri Services
is core business driver.
As the nations first branded fertilizer manufacturer, the Company helped modernize
traditional farming practices and boost farm yields, directly impacting the quality of life
for farmers and their families, and for the nation at large. Farmer education programs
increased consumption of fertilizers in Pakistan, paving way for Companys branded urea
called Engro an acronym for Energy for Growth.
Our story begins with one companys enterprising decision to strive ahead and invest
when another had bowed out. In 1957, Pak Stanvac an Esso/Mobil joint venture
stumbled upon vast deposits rich in natural gas in Mari while pursuing viable oil
exploration in Sind. With Pak Stanvac focused exclusively on oil exploration, the
Page 17
discovery shifted the impetus to Esso which decided to invest on the massive industrial
potential of Mari gas field. Esso proposed establishment of a giant urea plant in Daharki,
about ten miles from the Mari gas fields, which would use natural gas produced as its
primary raw material to turn out urea fertilizer. Talks with the Government of Pakistan
bore fruit in 1964, and an agreement was signed allowing Esso to set up a urea plant with
an annual capacity of 173,000 tons. Esso brought in state-of-the-art design; commercially
tried facilities; and a highly distinguished pool of technical expertise to ensure a smooth
start up. Total investment made was US$ 46M the single largest foreign investment in
Pakistan to date then. The plant started production on 4 December 1968 a few months
late and with less than 10 % over run on the original budget. To boost sales, a full-fledged
marketing organization was established which undertook agronomic programs to educate
farmers of Pakistan.
As the nations first branded fertilizer manufacturer, the Company helped modernize
traditional farming practices and boost farm yields, directly impacting the quality of life
for farmers and their families, and for the nation at large. Farmer education programs
increased consumption of fertilizers in Pakistan, paving way for Companys branded urea
called Engro an acronym for Energy for Growth.
In 1978, Esso became Exxon as part of an international name change. The Company was,
therefore, renamed Exxon Chemical Pakistan Limited.
In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees
of Exxon Chemical Pakistan Limited in partnership with leading international and local
financial institutions bought out Exxons 75% equity. This was, and perhaps still is, the
most successful employee buy-out in Pakistans corporate history. Renamed Engro
Chemical Pakistan Limited, the Company went from strength to strength with its
consistent financial performance; growth of its core fertilizer business; and diversification
into other enterprises.
A major plant capacity upgrade at Daharki coincided with the employee led buy-out in
1991. Engro also relocated fertilizer manufacturing plants from the UK and US to its
Daharki plant site an international first. As years followed, Engro Chemical Pakistan
Page 18
Limited started venturing into other sectors namely: foods, energy, chemical storage and
handling, trading, industrial automation and petrochemicals.
By 2009, Engro was fast growing and had already diversified its business portfolio in as
many as seven different industries. The continual expansions and diversifications in
Companys enterprises necessitated a broad restructuring in Engro Chemical Pakistan
Ltd. which subsequently demerged to form a new Engro subsidiary Engro Fertilizers
Limited.
After the necessary legal procedures and approvals, the Sindh High Court sanctioned the
demerger on December 9, 2009. The demerger became effective from January 1, 2010.
Subsequently, all fertilizer business assets and liabilities have been transferred to Engro
Fertilizers
Limited against the issue of shares to the parent company Engro Corp.
Page 19
Engro Fertilizer
Summary Balance Sheet
&
Profit & Loss Statement of
Summary of Balance Sheet
2014
2013
2012
2011
2010
Share capital
13183
12,228
10,728
10,728
10,728
Reserv
21295
12,84
15,070
7,889
2,912
34478
25,069
15,798
18,616
13,640
36091
55,896
51,482
59,398
64,160
Capital employed
78481
83,889
82,176
88,001
86,452
Deferred liabilities
5227
4,655
3,381
4,521
2,581
74963
79,315
82,878
86,332
84,370
75175
79,562
83,124
86,540
84,631
Current assets
36297
30,366
14,381
14,337
13,423
Sales
61425
50,129
30,626
31,353
19,017
Gross profit
22603
22,12
19,861
16,733
8,910
Operating profit
18521
17,054
6,752
14,521
6,556
11895
8,384
(3,952)
6,877
5,207
8208
5,497
(2,935)
4,588
3,730
EBITDA
23278
22,010
11,741
17,673
7,365
Page 20
Engro Fertilizer
FINANCIAL ANALYSIS
2014
2013
2012
2011
2010
Profitability Ratios
Gross profit ratio
38.8
44.13
32.20
53.37
48.85
13.36
10.97
(9.58)
14.63
19.61
37.89
46.30
38.34
56.37
38.73
Times
1.11
3.73
4.12
1.00
Return on equity
27.57
26.90
(17.o5) 28.4527.34
Liquidity Ratios
Current ratio
Times
1.02
1.34
0.55
0.81
0.83
Times
0.86
1.09
1.32
0.47
0.58
Times
0.12
0.2
0..09
0.03
0.11
Times
31.28
18.25
11.78
10.70
11.28
Times
10
248
14
Times
55.1
46
31
31
19
Times
81.9
63
37
36
23
4.66
4.66
4.05
70
81
89
73
540
6.29
56
Page 21
3.29
84
Engro Fertilizer
Assets
Non-Current assets:Property plant and Equipment
Intangible assets
Long term loans and advances
Current Assets:Store Spares and lose tools
Stock in trade
Trade debts
Deferred employee compensation exp.
Derivative Financial instruments
Loans advances and prepayments
Other Receivables
Taxes recoverable
Short term investment
Cash and bank balance
Total Assets
Equity And Liabilities
Share Capital
Share premium
Employee share option
Hedging Reserve
Unappropriated Profit
Total Equity
Liabilities
Noncurrent Liabilities
Borrowings
Subordinated Loan from holding companies
Derivative financial Instruments
Deferred liabilities
Employee Housing Subsidy
Retirement and other service benefit obligation
Current liabilities
Trade and other payables
Accrued interest
Borrowings
Other services benefit obligation
Short term borrowing
Derivative financial Instruments
Total Liabilities
2014
2013
2012
2011
-11.15
-20.8
-16.07
-5.9
26.6
-7.38
-1.76
8.72
-25
2.32%
-9.69
-34.8
38.97
22.87
114.4
-100
-100
-83.44
-74
-100
922.6
128.15
28.8
54.24
114.7
-100
4233
76
-74
-68.5
636.4
142.8
21.07
88.28
196
-100
-66.66
-84.86
-43.5
12.99
7.5
33.38
-0.56
24.1
104
-59.4
-100
68.6
-11.9
78.5
-89.2
-23.8
112.5
2.9
22.88
204.54
-100
95.49
411.87
152.77
13.98
-100
83.3
191.76
84
-100
63.47
44.35
158.2
-1.7
43.9
123
36.5
-42.4
-100
-99.93
102.5
-100
109.25
-15.58
100
44.16
80.35
-100
92.59
-22.6
100
-53.1
30.9
-100
83.3
-10
100
-48.7
75.2
-94.5
61.1
525.7
-30.3
360.5
-25.32
103.45
-9.7
31.8
5.3
-8.5
104.7
-100
61.96
-66.2
109.52
-100
-68.35
39.87
72.16
90.47
3.09
-15.89
61.92
15.4
57.1
-99.6
-36.8
9.1
Engro Fertilizer
Page 22
2010
2011
2012
2013
2014
86.04%
0.15%
0.113%
3.45%
0.913%
0.36%
0.0037%
0.0026
2.66%
0.109%
1.80%
2.5%
1.87%
100%
85.58%
0.133%
0.07%
4.172%
1.81%
0.142%
0
0.182%
1.398%
0.190%
1.85%
3.86%
0.58%
100%
85%
0.165%
0.085%
4.21%
1.73%
1.07%
0
0.00055%
0.40%
0.065%
2.05%
2.7%
2.55%
100%
75.15%
0.12%
0.099%
3.97%
1.25%
0.68%
0
0.118%
0.57%
0.025%
0.506%
16.42%
4.0555
100%
67.24%
0.106%
0.084%
4.22%
0.987%
0.68%
0
0
0.388%
0.024%
0
23%
3.75%
100%
11%
0.011%
0.059%
0
(0.50)%
0
3.80%
10.16%
0.011%
0.05%
0
(0.49)
0
8.24%
11%
0.01%
0
0
(0.33)
0
5.52%
11.1%
0.010%
11.82%
2.02%
1.92%
(0.13)
(0.01)
9.9%
0
(0.035)
(0.012)
71.12%
3.80%
63.9%
1.52%
1.08%
0.055%
0.35%
56%
2.97%
0.54%
4.48%
0.086%
0.018%
50%
3.07%
0.51%
3.46%
0.1%
0
48.1%
2.72%
1.39%
4.23%
0.094%
77.23%
0
0.0060
4.69%
0.10%
4%
2.02%
0
5.10%
2.06%
0
8.16%
1.83%
0
16.38%
1.34%
0
22%
1.22%
0.60%
8.82%
9.90%
15.27%
2.66%
7.09%
0.02%
0.99%
0.68%
0.03%
3.74%
0.42%
0.04
1.02%
0.58
0.039
0.388%
0.19%
0.98%
Engro Fertilizer
Horizontal Analyses of Profit & Loss Account
Years
Net Sale
2014
2013
2012
2011
222.98
163.5
61.04%
64.9%
Page 23
Cost of Sales
Gross Profit
Selling & admin Expenses
Admin Expenses
Other Operating expenses
Other Income
Operating Profit Or loss
Finance cost
Profit & loss Before Taxation
284
173.06
105.4
44.6
155.95
148.2
10.79
87.8
157.15
103.3
44.75
30
36.15
5.99
2.8
(3.2)
155.42
299.2
(21.3)
12.8
434.7
141.26
(11.45)
154.1
182.46
160
2.95
121.5
390.37
541.7
686.4
465.8
128.48
61.04
(175.9)
32.1
163.34
95.59
(168.9)
55.1
120
47.37
(178.6)
23
Taxation
Profit & loss after Taxation
Page 24
Engro Fertilizer
Vertical Analysis: Profit and loss Account
Years
Net Sale
Cost of Sales
Gross Profit
Selling & admin Expenses
Admin Expenses
Other Operating expenses
Other Income
Operating Profit Or loss
Finance cost
Profit & loss Before Taxation
2014
2013
2012
2011
2010
100%
100%
100%
100%
100%
83.20
55.9
67.8
46.6
53.2
36.80
44.1
32.2
53.4
46.8
7.21
8.2
7.2
9.1
1.3
1.2
1.9
1.8
2.1
4.1
1.3
1.9
2.7
2.2
1.2
3.7
2.4
30.2
34
22
46.2
34.4
10.8
17.3
34.9
24.4
7.1
19.4
16.7
-12.9
21.8
27.3
5.8
-3.3
7.3
7.8
13.4
10.9
-9.6
14.5
19.5
Taxation
Profit & loss after Taxation
Comparison:
Page 25
EPS
20.00
15.00
10.00
5.00
0.00
Year 2010
Year 2011
Year 2012
Year 2013
Year 2014
-5.00
EPS EF
EPS FFC
Current Ratio
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2010
2011
2012
C.R EF
2013
C.R FFC
Page 26
2014
Quick Ratio
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2010
2011
2012
Q.R EF
2013
2014
Q.R FFC
FFC Current ratio for 2013 decreased by 0.37 2014 depicted a minimal decrease of 0.10 times as
compared with 2013 due to increase in trade creditors.
EF The sharp increase in Quick ratio in 2013 is due to the EF drastic investments in bank balances & Short
term investment.
Page 27
Cash ratio
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2014
2013
2012
FFC
2011
2010
2011
2010
EF
2013
2012
-10
-20
FFC
EF
Page 28
2013
2012
2011
2010
-10
-20
FFC
EF
Year 2011
Year 2012
ITO EF
Year 2013
Year 2014
ITO FFC
FFC The Drastic change in Inventory turnover ratio indicate that the management is not
able to percept the change in sale or purchase actually.
Page 29
EF The steady improvement in inventory turnover indicate the true perception about sale
or purchase of raw material.
FATO
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Year 2010
Year 2011
Year 2012
FFC
Year 2013
Year 2014
EF
Year 2011
Year 2012
TATO EF
Year 2013
TATO FFC
Page 30
Year 2014
FFC The assets inventory turnover ratio is greater than the company average because of
company have better inventory management system and good collection period.
EF has steady increase in managing the inventory and indicate that the company is
moving towards good collection method.
Debt ratio
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Year 2010
Year 2011
Year 2012
Debt.R EF
Year 2013
Year 2014
Debt.R FFC
year 2011
year 2012
GP.M EF
GP.M FFc
Page 31
year 2013
year 2014
Rise in cost of sales owing to increased raw material cost and GIDC resulted in a
reduction in gross and net profit margins for 2014, depicting a decrease of 8% and
5%respectively from last year. Consequently, return on equity (post tax) and capital
employed were also lower by 9% and 4%respectively in comparison with
2013.Excluding exceptional performances in2011 and 2012, profitability ratios of the
Company were in concurrence with overall performance during the 6 years.
Year 2011
Year 2012
OP.M EF
OP.M FFC
Page 32
Year 2013
Year 2014
Year 2011
Year 2012
Year 2013
Year 2014
-10.00%
-20.00%
NP.M EF
NP.M FFC
Rise in cost of sales owing to increased raw material cost and GIDC resulted in a
reduction in gross and net profit margins for 2014, depicting a decrease of 8% and
5%respectively from last year. Consequently, return on equity (post tax) and capital
employed were also lower by 9% and 4%respectively in comparison with
2013.Excluding exceptional performances in2011 and 2012, profitability ratios of the
Company were in concurrence with overall performance during the 6 years.
Page 33
ROE
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Year 2010
Year 2011
Year 2012
Year 2013
Year 2014
-10.00%
ROA EF
ROA FFC
2013
2012
FFC
2011
EF
Page 34
2010
Leverage ratio
4
3.5
3
2.5
2
1.5
1
0.5
0
2014
2013
2012
FFC
2011
EF
Page 35
2010