Corporate Finance

Group members Roll No

1) Ufaq Nwaz
2) Farukh Malik
3) Shahzaib Malik
4) Memona Gulzar 10
Companies Name
1. Fatima Group
2. Pakarab
3. Fauji Fertilizer Company Limited
 Fatima Group
Fertilizers
The first and only green field project materialized under the 2001 Fertilizer Policy.

The key challenge to a healthy crop yield is posed by imbalanced and nutrient-
deficient soil. Research has highlighted this condition to be prevalent across
Pakistan. Hence, there is a need for modern solutions and the use of next
generation fertilizers for improving soil quality. It is therefore essential to
encourage the use of fertilizers that are nitrogen, phosphate and potassium
based.Balanced nutrients are key to healthy crops and optimum yield.

Fatima Group, from its both Pakarab Fertilizers and Fatima Fertilizer plants,
produces a wide variety of fertilizers, including urea, calcium ammonium nitrate
(CAN), nitro phosphate (NP) to cater for the agronomy of the Country.

The Government of Pakistan has planned to enhance the agricultural productivity

by encouraging the use of fertilizers having balanced nutrients. The objective of
this program is to ensure the use of major nutrients like nitrogen, phosphate and
potassium, applied in the right quantity at the correct time.

Fatima Group produces nitrogen and phosphate based fertilizers as balanced

nutrient solutions and ensures availability throughout Pakistan. Both Pakarab
Fertilizers and Fatima Fertilizer plants have the technology to produce the
necessary range of compound fertilizers. The combined manufacturing capacity is
2.1 million metric tons per annum, with following break-up:

Fertilizer Products
Urea
CAN
NP

Metric Tons / Annum

592,400
870,000
664,500

In addition to the above, both plants also manufacture mid process products as
follows:
Mid Products
Ammonia
Nitric Acid
CO2

Metric Tons / Annum

816,000
935,600
63,360

Fauji Fertilizer Limited

Company Information
Status of the Company: Public limited company
Company registration Number: 0006241
National Tax Number:  1435809-3
Investor Relations
 Dividend / Bonus
 
The Board of Directors of our Company in their Meeting held on Thursday January 30,
2020 at 0930 hours at FFC Head Office, Rawalpindi recommended the following:-
a. Cash Dividend
A Final Cash Dividend for the year ended December 31, 2019 at Rs. 3.25 per share
i.e. 32.50%. This is in addition to Interim Dividend already paid at Rs.7.55 per share i.e.
75.50%
b. Bonus Shares  – NIL
c. Right Shares  – NIL
d.   Any other price sensitive information – NIL
Book Closure

The above entitlement will be paid to the shareholders whose names will appear in the
Register of Members on March 09, 2020. The Share Transfer Books of the Company
will be closed from March 10, 2020 to  March 16, 2020 (both days inclusive). Transfers
received at the Central Depository Company of Pakistan limited, Share Registrar
Department, CDC House 99-B, Block ‘B’, S.M.C.H.S Main Shahra-e-Faisal, Karachi –
74400 at the close of business on March 09, 2020 will be treated in time for the purpose
of above entitlement to the transferees.
 
 Pakarab Fertilizer Limited

Company Profile 
Pakarab Fertilizers Limited (‘PFL’ or the ‘Company’) was established as a result of protocol
concluded and signed on November 15, 1972 by the Government of Pakistan to further
strengthen and develop fraternal tiesestablish a joint venture for the expansion and
modernization of the old Natural Gas Fertilizer Factory (NGFF) at Multan. 

The Company was incorporated on November 12, 1973. Subsequently, PIDC assigned 52% of
its shares to National Fertilizer Corporation (NFC) of Pakistan and ADNOC assigned 48% of its
share to International Petroleum Investment Company, with a paid up capital of Rs.743.061
million. 

Financial Highlights Six years at a glance (Rs. in millions except share data and ratios)

Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2011 2012 2013 2014 2015 2016
Income Statement:

Turnover Rs. 16,701 8,136 7,428 14,248 21,920 16,176 Cost of Goods Sold Rs. (7,188)
(6,221) (7,143) (12,264) (17,353) (16,206) Gross Profit Rs. 9,513 1,915 286 1,984
4,568 (30) Admin Cost Rs. (969) (1,165) (888) (731) (879) (694) Distribution Cost Rs.
(829) (299) (495) (686) (897) (830) Financial Cost Rs. (3,472) (2,610) (1,579) (1,626)
(1,677) (1,802) Other Expenses Rs. (510) (218) (382) (1) (333) (16) Interest Income Rs.
736 685 63 – – – Other Income Rs. 1,119 843 198 1,036 333 352 Re-measurement
gain / (loss) Rs. 741 (47) – – – – Share gain/(loss) of associated company Rs. (18) – – –
– – Profit / (loss) before Tax Rs. 6,311 (896) (2,798) (25) 1,114 (3,019) Profit / (loss)
after Tax Rs. 4,590 (240) (1,825) (45) 2,460 (1,927) EBITDA Rs. 10,665 2,929 (745)
2,041 3,555 (524)
Balance Sheet:

Paid up Capital Rs. 4,500 4,500 4,500 4,500 4,500 4,500 Shareholder’s Equity
including revaluation reserve Rs. 17,856 15,396 13,584 16,273 19,411 17,507 Long
term borrowings Rs. 8,484 4,559 1,466 1,891 4,203 11,590 Capital employed Rs.
32,636 25,943 20,650 23,764 28,114 33,597 Deferred liabilities Rs. 11,058 11,038
10,059 10,303 8,105 6,861 Property, plant & equipment Rs. 37,937 37,290 37,114
39,909 39,194 38,749 Long term assets Rs. 46,336 41,188 40,945 43,735 43,027 42,620
Net current assets / Working capital Rs. (2,456) (4,111) (10,188) (9,620) (6,762) (2,126)
Total Assets Rs. 65,341 54,636 48,148 52,727 65,680 60,561

Cash Flows:

Operating activities Rs. 4,023 (1,179) (682) 2,797 (10,603) 813 Investing activities Rs.
(710) 5,870 2,790 345 50 (207) Financing activities Rs. (2,643) (5,665) (1,864) (1,789)
(857) 5,249 Changes in cash & cash equivalents Rs. 669 (973) 244 1,352 (11,410) 5,855
Cash & cash equivalents - Year end Rs. (3,847) (4,820) (4,576) (3,224) (14,634) (8,779)

Key Indicators:

Operating: Gross Profit Margin % 56.96 23.54 3.84 13.92 20.84 (0.19) Pre tax margin
% 37.79 (11.01) (37.67) (0.17) 5.08 (18.67) Net profit margin % 27.48 (2.95) (24.57)
(0.31) 11.22 (11.91) EBITDA %age to sale % 63.86 36.00 (10.04) 14.33 16.22 (3.24)
Earning per share (Rs.) Basic Rs. 10.20 (0.53) (4.06) (0.10) 5.47 (4.28)

Performance:
Book Value per share(Excluding revaluation surplus) Rs. 23.14 17.63 13.78 13.96 19.75
15.85 Book Value per share(Including revaluation surplus) Rs. 49.68 44.21 40.19 46.16
53.14 48.91 Return on assets % 7.02 (0.44) (3.79) (0.08) 3.74 (3.18) Total Assets
Turnover Times 0.26 0.15 0.15 0.27 0.33 0.27 Fixed Assets Turnover Times 0.44 0.22
0.20 0.36 0.56 0.42 Debtors turnover Times 12.19 11.14 20.52 83.57 15.59 5.86
Debtors turnover Days 29.95 33 18 4 23 62 Inventory turnover Times 1.45 1.32 1.40
3.07 2.39 1.33 Inventory turnover Days 251 276 261 119 153 275 Return on Share
Capital % 102.00 (5.33) (40.56) (0.99) 54.66 (42.82) Return on Equity(excluding
revaluation surplus) % 44.08 (3.03) (29.44) (0.71) 27.67 (27.02)