Ujala Saif (Report) 3

Internship Report On Fatimafert Ltd.

University Of Education Lower Mall Campus Lahore 1

Declaration

AUG-OCT 2016

TO WHOM IT MAY CONCERN

Dear Sir:

Submitted for your review is the report of my Eight Week internship at Human resources

department of Fatimafert Limited (Formerly DH Fertilizer Limited) Sheikhupura during

24 August-23 October 2016.

It is hereby declared that the report is compiled in long report format, as per the guidelines

It is anticipated that response will be reflected.

Regards

UJALA SAIF

(Student at university of education, lower mall campus, Lahore)

Email: [email protected]

Contact: 0335-4258848



Acknowledgement

I want to express all my humble thanks to ALLAH who is very sensitive about each and

every activity of all his man and without whose help I am unable to accomplish this objective of

our life.

The internship opportunity I had with Fatimafert Limited (Formerly DH Fertilizer Limited)

was a great chance for learning and professional development. Therefore, I consider myself as a

very lucky individual as I was provided with an opportunity to be a part of it. I am also grateful

for having a chance to meet so many wonderful people and professionals who led me through this

internship period.

Bearing in mind previous I am using this opportunity to express my deepest gratitude and special

thanks to the Mr. Farooq Ahmad (HR Coordinator) of Fatimafert Limited who in spite of being

extraordinarily busy with his duties, took time out to hear, guide and keep me on the correct path

and allowing me to carry out my internship at their esteemed organization and extending during

the training.

I express my deepest thanks to Mr. Zahid Rafique (HRBP) for taking part in useful decision &

giving necessary advices and guidance and arranged all facilities to make life easier. I choose this

moment to acknowledge his contribution gratefully. I am also thankful to all other staff of

Fatimafert Limited departments.

Finally, I would like to thank my parents for a lifetime of love and support. They have taught me

the most important lessons in life, and I owe all of my achievements to them. Sincerely,

UJALA SAIF

UELMC Lahore



Executive Summary

The core objective of the internship is to fulfill the requirement of the MBA program prescribed

by the University of Education Lower Mall Campus Lahore. An intern has to prepare project report

at the end of the internship period but the main objective of the internship is to get the hands-on

experience of the real world organization.

Food consumption is likely to rise in emerging markets where economic growth results in better

income per capita because higher income would lead to increased food consumption and hence

greater grain demand. With growth in arable land diminishing as a consequence of rapid soil

erosion, fertilizer usage will continue to play an important role in food production. Despite bouts

of industry swings in the intermediate terms, secular industry dynamics will remain robust for the

industry because of the estimated 5-6% p.a. long terms growth in fertilizer demand in Pakistan and

the largely inelastic food demand.

Fatima Group contributes significantly to the economic development of Pakistan. It was

established in 1936 with trading of commodities and gradually entered into the manufacturing of

various products. The Group has a success story spread over seven decades, expanding its horizon

from trading to manufacturing. Today, the Group is engaged in trading of commodities,

manufacturing of fertilizers, textiles, sugar, mining and energy.

Fatimafert Limited was incorporated on August 2, 2010 following a decision to demerge fertilizer

business from its parent Company Dawood Hercules Chemicals Limited, named DH Fertilizers

Limited. The demerger was approved by Lahore High Court on July 25, 2010 making it effective

as of July 1, 2010.

Fatima Group took the control of DH Fertilizers Limited on July 1, 2015 and changed its name to

Fatimafert Limited on December 2, 2015. The brand “Bubber Sher” was also acquired by Fatima

Group by purchasing the Company Bubber Sher (Private) Ltd, as a wholly owned subsidiary of

Fatima Fertilizer Company Limited.

The manufacturing facility located at Chichoki Mallian, 28-KM Lahore Road, Sheikhupura started

its commercial production on October 13, 1971. The original design capacities of Ammonia and

Urea plants were 625 MT per day and 1100 MT per day respectively. The plant revamp was carried

out from 1989 – 1991 and the design capacity was increased to 815 MT per day Ammonia and

1350 MT per day Urea. However, at present the plant is producing 1,500 MTPD of Urea, 890

MTPD of Ammonia due to Essential Equipment’s Replacement and higher capacity utilization.

The report starts with a table of content, brief introduction of industry, organization profile of

Fatimafert Limited (Formerly DH Fertilizer Limited) giving its background, mission, vision, its

products and services, the hierarchy and organogram of the organization. Following that the next

section contains information about the job, which are just tasks and responsibilities during my

internship period at the Fatimafert Limited (Formerly DH Fertilizer Limited).



My internship program period is 24th august

2016 to 23rd October 2016. During internship,

I worked in HR Department on Employees

record keeping, medical facility, leaves record,

minimum wage working, budgeting,

recruitment and selection process, training,

performance, EOBI, inquiry conduct,

apprenticeships test, attrition analysis,

employee’s profiles, scanning and social

security.

The next section is the largest which comprises the project marketing 4ps, Human Resource

Management the project encompasses introduction to the topic, recruitment, selection, orientation,

compensation and benefit, training and development. Each chapter contains detailed discussion of

the HR functions with relevant examples followed by Organization Practice at Fatimafert Limited

(Formerly DH Fertilizer Limited) which basically conveys how things are done in the HR

Department of the Fatimafert limited. As for as the different ratios of the Fatimafert limited, they

all give the healthy sign regarding financial position of the industry as well as the operation results

of the different financial years. All ratios are fully in accordance with the fertilizer industry’s

standard. These ratios depict and indicate that the financial strength of the on a higher side and

further prospect of the Fatimafert limited is brighter.

The next part of the report carries out SWOT Analysis that touches upon strengths, weakness,

opportunities and threats to the organization followed by results and discussion on critical factors

regarding Human Resource Management of Fatimafert limited.

At the end the conclusion and the recommendations are the part of the report. Reference & Sources

is the part, which contain all the references from I, obtained data to prepare this report.



Table of Content

Sr.# Content Page No.

Part 1: Overview of fertilizer industry

1.1 PIDC (Pakistan Industrial Development Corporation) 8

1.2 Fertilizers- A Brief History 8

1.3 Fertilizer Policy of 1991 9

1.4 Importance of Fertilizer 9

Part 2:Overview of the Organization(Fatimafert limited)

2.1 Brief History 10

2.2 Mission and Vision Statement 12

2.3 Memberships and Awards 13

2.4 Core Values and Behaviors 13

2.5 Nature of the Business 13

2.6 Policy of the Organization 14

2.7 Marketing Strategy 14

2.8 Competitors 14

2.9 Business Volume 15

2.10 Product and Services 16

Part 3: Organizational structure

3.1 Organizational Hierarchy Chart 17

3.2 Chairman Message 18

3.3 Market Overview 18

3.4 Company Performance 19

3.5 Acknowledgement 19

3.6 Board of Director 19

3.7 Company Information 21

3.8 Number Of Employees 21

3.9 Main Offices 21

3.10 Brief Introduction Of All Departments 22

3.11 Sales and Promotion Department 22

3.12 Regional Office 22



3.13 Distribution Department 23

3.14 Warehousing Department 23

3.15 Administration Department 24

3.16 HR Department 24

3.17 IT Department 25

3.18 Finance Department 26

3.19 Planning Department 27

3.20 Farm Advisory Services 27

3.21 Production Department 27

3.22 Technical Department 27

3.23 Engineering Department 28

3.24 Safety and Training Department 28

3.25 Support Service 28

Part 4: Plan of internship program

4.1 Brief Introduction of The Branch 29

4.2 Internship at Fatimafert Ltd.(Starting And Ending Date) 29

Part 5: Training Program

5.1 HR Division (Detailed function) 30

5.2 Description of Tasks(week.1-8) 34

5.3 Learning and Achievements of Internship 35

Part 6: Structure of HR Department

6.1 Department Hierarchy 36

6.2 Number of Employees Under HRD 37

Part 7: Marketing Functions

7.1 Products 38

7.2 Pricing Strategies 38

7.3 Distribution Channels 39

7.4 Promotion 39

7.5 PEST Analysis 40

Part 8: Financial Analysis

8.1 Share Holding Information 42

8.2 Tentative Financial Calendar 43



8.3 The Ratio 44

8.4 Ratio analysis 51

Part 9: Critical Analysis ( HRM )

9.1 HR Planning 53

9.2 Job Analysis 53

9.3 Recruitment and Selection 55

9.4 Orientation of New Hires 56

9.5 Training and Development 56

9.6 Performance Management 57

9.7 Compensation and Benefits 58

Part 10: SWOT Analysis

10.1 Internal Factors (S W) 59

10.2 External Factor (O T) 60

Conclusion 61

Recommendation 62

References And Sources 63

Announcement of Name Change 64



Part 1: OVERVIEW OF THE FERTILIZER INDUSTRY

Pakistan is an agricultural country where about 72% of the

total population not only resides in rural areas but also relies

for its sustenance on Agriculture activities. This sector is

contributing a lion’s share in the national economy. Most of

the national economic target is dependent on the

performance of our agricultural sector. It contributes 24% to

the total GDP. Raw Cotton, Sugarcane and Wheat are major

crops having economic importance. The fertilizer is an

important input which boosts the Agriculture production.

Unfortunately, it is used three times lower in our country than that of the developed countries in

the world. We are not still self-sufficient in producing our staple food grain, soil deterioration,

nutrient mining. And there is insufficient and inadequate use of fertilizer.

1.1 PIDC (Pakistan Industrial Development Corporation)

In 1952 Pakistan industrial Development Corporation (PIDC) was established which hasimprove

d the ratio of investment in public sector

1.2 FERTILIZERS- A BRIEF HISTORY

The fertilizer industry is an integral part of Pakistan’s economy. The Pakistani fertilizer industry

produces, imports and distributes various types of fertilizers. The National Fertilizer Corporation

(NFC), a government corporation remained for most of Pakistan’s history as the largest

manufacturer of fertilizers.

After the partition of the sub-continent, the Food and Agricultural organization (FAO) entered the

scene forming an agreement with the Government of Pakistan. This resulted in the initiation

of Rapid Soil Fertility Survey and Population of Fertilizers project in 1958. The conclusion from

these studies was that the Pakistani soil is highly deficient in Nitrogen content and thus more

emphasis should be placed on Urea consumption. Secondly they also concluded that our

agriculture output is 1/3rd of our potential.

Ayub Khan’s green revolution emphasized on the fertilizer sector in the Public Sector. The NFC

set up Pakistan’s first fertilizer plant in 1958. The first private sector plant was set up by Exxon at

Dharki in 1965 at a cost of $43 million. This was followed by Fauji Fertilizer in 1977 and Dawood

Hercules later on. The NFC owned and operated six manufacturing units that accounted for the

balance.

Until 1986, the fertilizer industry was highly regulated. The government fixed prices and the

profitability of the manufacturers was capped at 20% of ROE. The regulated environment stifled

private sector investment in the fertilizer industry, leading to a widening demand-supply gap that

had to be bridged through expensive imports. Urea prices were deregulated in 1986. However, this

did not help the manufacturers significantly as urea price increases were not large enough to offset



the loss incurred on selling costly imported urea at lower prices in the local market. By 1991, urea

imports had risen to 584,900 tons, approximately 27% of installed capacity. Imports were not only

causing damage to the local industry, but were also affecting the country’s foreign exchange

reserves. In 1991 the government initiated a fertilizer policy which granted special incentives for

setting up new projects and expansions.

1.3 FERTILIZER POLICY OF 1991

The salient features of that policy were:

Supply of feedstock gas at prices locked for 10 years

Guaranteed supply of gas for at least 9 months of the year.

Duty-free imports of the plant and machinery

No sales tax or excise duty on the sale of fertilizer

Expansion of existing plants to be allowed the same concessions as new plants

No government sanctioning of private sector investment needed

Deregulation of prices of all fertilizers

Eight-year tax holiday from date of commencement of commercial production for new

projects

If price controls are imposed by the government, prices are to be set in such a manner that

ex-factory prices guarantee a ROE of 20%Duty

1.4 IMPORTANCE OF FERTILIZER

Food consumption is likely to rise in emerging markets where economic growth results in better

income per capita because higher income would lead to increased food consumption and hence

greater grain demand. With growth in arable land diminishing as a consequence of rapid soil

erosion, fertilizer usage will continue to play an important role in food production. Despite bouts

of industry swings in the intermediate terms, secular industry dynamics will remain robust for the

industry because of the estimated 5-6% p.a. long terms growth in fertilizer demand in Pakistan and

the largely inelastic food demand.

The agriculture sector is important because it accounts for:

24% of the country’s GDP

50% of the employed labor force

65% of the country’s total export earnings making

it the largest source of FX earnings

Forms the basis for over 50% of industrial

production

Has growth rate of 3-4% per annum

And that population growth is roughly gauged at 2.3% p.a. (current population: 134mn) compared

to 2.2% p.a. in India and 2.4% p.a. in Egypt. With larger population comes greater demand for

food consequently higher demand for grain.



Part 2: Overview of the Organization (Fatimafert Limited)

2.1 Brief History

Fatimafert Limited (formerly DH fertilizers

Limited) is the wholly owned subsidiary of

Fatima Fertilizer Company Limited, and a

renowned name in Pakistan’s fertilizers

Industry selling Urea under the leading brand

name of “Bubber Sher” for local cultivation.

Fatimafert Limited is also the leading importer

of DAP, marketed extensively across Pakistan.

Fatimafert Limited enjoys a large customer base across Pakistan owing to its trusted brand name

and upholding the trust of its loyal customers. Fatimafert Limited was incorporated on August 2,

2010 following a decision to demerge fertilizer business from its parent Company Dawood

Hercules Chemicals Limited, named DH Fertilizers Limited. The demerger was approved by

Lahore High Court on July 25, 2010 making it effective as of July 1, 2010.

Fatima Group took the control of DH Fertilizers Limited on July 1, 2015 and changed its name to

Fatimafert Limited on December 2, 2015. The brand “Bubber Sher” was also acquired by Fatima

Group by purchasing the Company Bubber Sher (Private) Ltd, as a wholly owned subsidiary of

Fatima Fertilizer Company Limited.

The manufacturing facility located at Chichoki Mallian, 28-KM Lahore Road, Sheikhupura started

its commercial production on October 13, 1971. The original design capacities of Ammonia and

Urea plants were 625 MT per day and 1100 MT per day respectively. The plant revamp was carried

out from 1989 – 1991 and the design capacity was increased to 815 MT per day Ammonia and

1350 MT per day Urea. However, at present the plant is producing 1,500 MTPD of Urea, 890

MTPD of Ammonia due to Essential Equipment’s Replacement and higher capacity utilization



Since the inception of the Company the Milestones achieved are as render:

Year Milestone

1968 Company Incorporated

1969 Project Construction

1971 Commercial Production

1991 Capacity Enhancement Urea (122%) & Ammonia (130%)

1997 ISO 9002 Quality Management system Certification

2004 New Prill Tower Commissioning

2006 Essential Equipment’s Replacement

2008 ISO-14001 Environment Management System Certification

2008 OHSAS 18001 Safety Management System Certification

2009,2010,2011 Environment Excellence Award

2010 GT-4401 Gas turbine commissioning

2011 TK-6601 New Ammonia Tank commissioning

2013 SMS 3rd party rating of 3.5 on World Class Benchmarking

2015 Million Safe Man-hours of 11.26 and TRIR is Zero



2.2 Vision and Mission

Our vision and mission reinforces our position as a driving force in the agricultural sector.

Vision:

To be a world class manufacturer of fertilizer

and ancillary products, with a focus on safety,

quality and positive 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 by

providing quality products and services.

To provide employees with 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.



2.3 Memberships and Awards

Memberships:

International Fertilizer Association (IFA)

Lahore Chamber of Commerce and

Industry

Sheikhupura Chamber of Commerce and

Industry

Pakistan Institute of Management

Sciences

Certifications:

The first fertilizer manufacturing company to obtain ISO-9001:2000 certification in

Pakistan

OHSAS 18001:2007 Safety Management System Certified by TUV Austria

ISO 14001:2004 Environment Management System Certified by TUV Austria

ISO 9001:2008 Quality Management System Certified by TUV Austria

2.4 Core Values & Behaviours

These values are a part of our business's DNA.

Integrity

Innovation

Teamwork

Safety, Health, Environment & CSR

Customer Focus

Excellence

Valuing People

2.5 Nature of The Business

The company is a public company incorporated in Pakistan under the Companies Act 1913. Now

the Companies Ordinance 1984 its shares are quoted on the stock exchanges in Pakistan. The

principal activity of the company is manufacturing, purchasing and marketing of fertilizer

including investment in other fertilizer manufacturing operations.



2.6 Policy of the Organization

Core Quality Policy:

The main objectives of Fatimafert Limited (formerly DH Fertilizers Limited) Quality policy are:

Compliance to desired standards of Quality & Quantity

Time delivery of product

Consistency in product specifications

Complete customer satisfaction

These goals are attained by the inclusion of a Continuous Improvement Process.

Safety and health policy:

Fatimafert limited is committed to maintain a safe and healthy environment having the same

significance as productivity. It inculcates safety culture by specific training, incentives, and

effective control, to ensure a safe and healthy working environment. It resolves to attain the highest

standards of safety and health through consistent improvements in on-the-job and off-the-job

safety and in the working conditions.

Environmental policy:

Fatimafert Limited is committed to achieve environmental protection through compliance with all

the applicable laws and regulations. An active pollution prevention program is followed with

efforts for continual improvement in the environmental aspects related to plant operations.

2.7 marketing strategy

Fatimafert limited use following strategy:

Identifying the market style and market trend.

Identifying the customer trend and style.

Identifying the customer needs and demands.

Identify the segments within your market.

Understand company's strengths and weaknesses.

Implementation of 4p's price place product promotions.

Understand where you want your brands to be in the future, and write marketing plan on

regular basis to help you get there.

Internal service quality of customer satisfaction.

2.8 Competitors

FAUJI FERTILIZER COMPANY LTD (FFC)

ENGRO FERTILIZER LTD (EFL)

FATIMA FERTILIZER LTD (FFL)

AGRITECH LTD (FORMERLY PAK AMERICAN FERTILIZER LTD)



2.9 Business Volume

Fatima group

Fatima Fertilizer Company Limited

Pakarab Fertilizers Limited

Fatimafert Limited

(formerly DH Fertilizers Limited)

Reliance Weaving Mills Limited

Reliance Commodities (Pvt) Ltd.

Fatima Sugar Mills Limited

Fatima Energy Limited

Reliance Sacks Limited

Fatima Holding Limited

Spring Hospital / Institute of Psychiatry

Distribution Network

Since the start of its operations Fatimafert Limited

has been building long standing relationships with

fertilizer dealers. Currently Fatimafert Limited

(formerly DH Fertilizers Limited) dealership network

consists of 1300 exclusive dealers who ensure door

step availability of all products to the end users.

The agribusiness division carries out sales and marketing activities with a team of sales, marketing

and support personnel. The geographic footprint of Fatimafert Limited (formerly DH Fertilizers

Limited) covers the following districts:

Lahore Kasur Sheikhupura Nankana Sahib Gujranwala Hafizabad Gujrat Mandi Bahauddin Sargodha Faisalabald Jhang Okara Sahiwal Narowal Sialkot Khushab Toba Tek Singh

http://fatima-group.com/ffcl

http://fatima-group.com/pafl

http://fatima-group.com/ffl

http://fatima-group.com/ffl

http://fatima-group.com/rwml

http://fatima-group.com/rcpl

http://fatima-group.com/fsml

http://fatima-group.com/fel

http://fatima-group.com/rsl

http://fatima-group.com/fhl

http://fatima-group.com/mast



2.10 Business of Organization (Products and/or Services)

It has three main products

Urea

Urea is white crystalline solid containing 46% nitrogen in the form of amide. Urea contains the

most Nitrogen when compared to other fertilizer sources. Urea is a versatile fertilizer that is readily

soluble in water and can thus be applied through different modes of delivery to the crops.

Commercially it is available in granular or prilled form. Fatimafert Limited markets prilled urea

in free flowing form.

Fatimafert Limited (formerly DH Fertilizers Limited) markets urea under the brand

BubberSher®. BubberSher® has consistently delivered quality and value for more than 40 years

and continues to enjoy a high brand share of preference in the markets Fatimafert Limited

(formerly DH Fertilizers Limited) serves.

Ammonia

Ammonia is a water-soluble, colorless gas, with a pungent smell. A compound of nitrogen and

hydrogen with the formula NH3, ammonia besides being a source of nitrogen in agriculture, has

wide ranging industrial and commercial applications. Anhydrous Ammonia has a composition of

98.8% ammonia, up to 0.20% of water and not more than 10 PPM of oil while Aqueous Ammonia

contains 21-25% of ammonia dissolved in water with an overall turbidity not exceeding 10 NTU.

DAP

Produced from the reaction of ammonia and phosphoric acid, Di-Ammonium phosphate (DAP)

is one of the most widely used phosphate fertilizer in agriculture across the world today. DAP is

composed of 18% Nitrogen and 46% Phosphorus. DAP is alkaline with a high pH, exceeding 7.5.

It is highly soluble and thus dissolves quickly in soil to release plant-available phosphate and

ammonium.



Part 3: Organizational Structure

3.1 Organizational Hierarchy chart

(Organogram of Fatimafert limited)

Assistant

Technical Manager

Assistant

Engineering

Manager

Manager

Quality

Control

Sr. General

Manager

General Manager Plant

/ Management

Representative

Marketing

Manager

HSE &

Training

Manager

Supply

Chain

Manager

Producti

on

Manager

Mana

ger

Human

Resource

Manager

Engineeri

ng

Manager

Projects

Manager

Technical

Manager

Administr

ation

Manager

Incharge Training & ISO

Inspection

Manager

Assistant

Manager

Supply

Chain

Assistant

Production

Manager



3.2 Chairman's Message

“Fatimafert Limited (formerly DH Fertilizers Limited) has a

bright future and the company looks forward to growth in

volume and return for its investors.”

3.3 Market Overview

Compared to 2013, the year 2014 was better for the global fertilizer industry, with prices improving

of both Nitrogenous and Phosphate fertilizers. The Nitrogen market was weak during 2013, with

prices sliding in the Middle East to USD 290 per ton. Favourable demand in the East with China

producing less and Middle East benefiting from improved supply resources has ensured that the

Nitrogen market strengthened in 2014. The Middle East prices hence improved to USD 340 per

ton by the end of the third quarter of the year. Though the demand softened towards the end, the

year closed stronger than anticipated with the prices in the Middle East at USD 320 per ton and

prices in China at USD 285 per ton. Supply still remains a concern as there are potentially huge

volumes available in China for export. In Pakistan, the gas shortage persisted for the fourth

consecutive year and was the severest ever for the three plants on the SNGPL network. With

commodity prices remaining under pressure, particularly for rice and sugarcane, farmers were

reluctant to invest in Nitrogen fertilizers. Therefore, the Urea market declined by 4.5%, from 5.89

Million Tons in 2013 to 5.63 Million Tons in 2014. The Phosphate market continued to recover

from the slide in 2012

Demand both in the west and the east ensured that the global market was stable to firm. Thus prices

in China rose from as low as USD 400 per ton in December 2013 to USD 500 per ton by September

2014. Saudi Arabia followed suit. By the end of the year, the demand softened slightly due to

seasonal low, hence prices softened to USD 485-490 per ton. In Pakistan, the Phosphate market

registered an improvement by 5%, from 1,625 KT in 2013 to 1,709 KT in 2014. This was a

consequence of under dosage by farmers in 2011 and 2012. Therefore, farmers moved towards

balanced application in 2013 and 2014. We are proud to announce that we delivered substantially

good results for the shareholders through better production and sales.

http://fatima-group.com/ffl/people_detail.php/Arif--Habib-22



3.4 Company Performance

The overall sales of the Company improved over 2013. Sales of Urea remained in line with

production and increased by 6.58% from 350 KT in 2013 to 373 KT in 2014. However, sales of

CAN dropped by 5.9%, with lower consumption due to overall decline in the Nitrogen market

impacted by lower water availability. NP continues to go from strength to strength with increasing

awareness among farmers regarding the benefits of the product. Consequently, the sales increased

by 12.12% over last year with strong demand supported by better availability of product.

3.5 Acknowledgements

The Board of Directors wish to place on record their appreciation for the assistance, guidance and

cooperation that Fatimafert Limited received from all stakeholder including the Government of

Pakistan, Financial Institutions, Commercial Banks, SNGPL, Business Associates, Customers and

all others whose continued support has been a source of strength to the company. The Directors

also sincerely appreciate the devotion and commitment of every employee of the company.

3.6 Board of Directors | Fatimafert Limited

The vision of the Directors and untiring

efforts of the Management Team has made

this dream possible.

The Directors of Fatimafert Limited (formerly

DH Fertilizers Limited) comprise of energetic,

highly qualified and experienced professionals.

The Directors have past experience of managing

large industrial units and commercial

businesses.



Arif Habib Fawad Ahmed Mukhtar

Chairman Chief Executive Officer

Fazal Ahmed Sheikh Faisal Ahmed Mukhtar

Executive Director Director

Muhammad Kashif Habib Muhammad Abad Khan Director Director

http://fatima-group.com/ffl/people_detail.php/Fawad-Ahmed-Mukhtar-23

http://fatima-group.com/ffl/people_detail.php/Arif--Habib-22

http://fatima-group.com/ffl/people_detail.php/Fazal-Ahmed-Sheikh-24

http://fatima-group.com/ffl/people_detail.php/Faisal-Ahmed-Mukhtar-25

http://fatima-group.com/ffl/people_detail.php/Muhammad-Abad -Khan-2

http://fatima-group.com/ffl/people_detail.php/Muhammad-Kashif-Habib-26



3.7 Company Information

3.8 Number of Employees

There are 172 managerial employees, 184 non-managerial employees, 15 employees are on

company contract and 200 to 300 employees are third parties’ employees who work in canteen and

others, in Fatimafert Limited.

3.9 Main Office

Where people come first - With highly skilled and innovative employees, our human resource is

our strength.

Registered Head Office

35-A Shahrah-e-Abdul Hameed Bin Baadees (Empress Road),

Lahore.

P.O.Box No. 1294

PABX: +92 42 36301601-7

Fax: +92 42 36360343, +92 42 36364316

Plant 28-km Sheikhupura Road, Chichokimallian

Tel: 92 42 3731 9200 – 99, +92 56 340 6063

Fax: 92 42 3371 9295

Website: www.fatima-group.com

Email: [email protected]

Status: Economically Significant Company (ESC)

Registration Number: CUIN-0073249

National tax Number: 3680541-6

Sales Tax Number: 03-00-3680-541-18

Auditor(s): M/s. Deloitte Yousuf Adil, Chartered Accountants

Legal Adviser(s): 1 - M/s HaidermotaBNR & Co.

2 - M/s Hassan & Hassan (Advocates)

http://www.fatima-group.com/

mailto:[email protected]



3.10 Brief Introduction of all the Departments

Company departmental functions

The company has two main division

1-head office division

2-Plant site division

3.11 Sales Promotion and Advertisements

Objectives

To create, augment and maintain demand of Fatimafert limited products

To enhance and sustain brand image and corporate image

Improve company visibility in mind of customers

To safe guard company logo

To strengthen brand loyalty

3.12 Regional Office (Lahore)

The Regional Office Lahore Is front line Dept. it is actually involved with direct sales of fertilizer

and interacting with dealers. The regional manager, Technical sales officer, sales officer Lahore

are working with assistance of stock members for three days Tuesday-Thursday the officers are in

field visit and for rest of days they perform their office work

Activities

Monitoring product wise/district wise achievements with respect to targets

Monitoring current market situation with respect to fertilizer industry

Monitoring competitor’s activities in detail

Managing warehouse, their sales and closing stock

Appointing and terminating dealers as regard to their performance, literate goals is to have

a strong dealer network



3.13 Distribution Department

Distribution Department is major department helping the sales force. Primary function of

Distribution dept. is to ensure effective and efficient distribution of product from plants to final

customer.

Objectives of Distribution Department

Ship out entire production of Fatimafert limited plants and imported fertilizer in accost

effective manner.

Satisfying 3800 dealers and 184 warehouses

Plan and undertake self-exports/imports and ensure prompt handling, quality packing,

correct weight, timely delivery and arrange safe storage of surplus product during lean

months.

Follow up of product quality complaints

Co-ordinate with plant management to ensure smooth operations

Maintain liaison with Pak Railways, NLC, Port authorities and suppliers

Transportation arrangements

Private trucking contractions

Pakistan Railways

3.14 Warehousing Department

The warehousing department is involved in completing formality of hiring and rehiring

warehouses (on need basis), appointment of handling contractors, watch and ward contractors. The

record of inventories is mentioned and physical inspection of warehouse and product are carried

out to ensure safety and security. This department works in collaboration with Distribution

Department.

Functions of warehousing department:

Coordinating of warehousing dept. with the regions regarding warehouse selection,

training of supervisors, planning capacity of warehouse

Conduction of inspection of warehouses on planned and surprised bases

Each warehouse is inspected around 17 times a year

Warehousing department is considered with processing of:

Lease agreements

Watch and ward agreements

Handling agreement

Watch and ward bills

Conduct the training of warehouse supervisors

Preparing the operational, capital and revenue budgets on yearly basis

Formulating warehouse plans

Preparing weekly capacity reports



Types of warehouses:

Strategic warehouses

Temporary warehouses

Permanent warehouses

Purely temporary warehouses

3.15 Administration Department

Administration department is involved in conducting the administration function of Fatimafert

limited marketing division

Functions

Provision and maintenance of transport i.e. cars, jeeps and poor vehicles

Ensure availability of utilities like gas, electricity, telephone, E-mail, and photocopy

facility

Undertake protocol duties like reception, transport and ticketing etc. for company officers

and guests

Ensure the implementation of company policy and rules

Provision of uniform to entitled staff (Qasids, chowkidars, electricians and drivers)

Ensure proper maintenance of the office premises and guesthouses

Take disciplinary actions under the rules where necessary

Disposal of unusable assets of the company

Managing three major types of transport system related to the marketing division:

Company maintained

Company assisted cars/jeeps

Pool transport

3.16 Human Resource Department

No. of staff employees 2

1. HRBP Mr. Zahid rafique

2. HR Coordinator Mr. farooq Ahmad

The Fatimafert limited 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.



Functions

Work out with supervisor’s consultation with regional manager and arrange recruitment and

transfer activities according to the head office instructions.

1. Maintain up to date personal records, statistics including leave records, relating to

management and non-management employees.

2. Interpret company policy and provision of necessary ruling where required.

Handling Cases Relating to Following Subject

Appointment of non-management employees. Temporary/contract based/daily wages

according to authorization.

Promotion of non-management employees

Pay and allowances of non-management employees

Leaves (annual, casual, special, sick) are managed for all employees

Transfer claims of all employees

House/rent allowances advances

Also the house building loans

3.17 IT Department

Information technology unit was properly setup in Fatimafert Limited .IT unit is one of the most

important departments working in marketing division in plan site. The unit has to play a leading

role in order to all the departments to perform all their functions effectively and efficiently. It

enables management to make timely decisions.

Objectives of IT unit

To meet the computing needs of all the departments of marketing division.

To design and develop efficient, effective and user friendly information system.

To provide the maintenance services and proper updating of all these systems.

To properly cope with the security and ethical challenges related to information technology

and information systems

To design proper feedback and control procedures towards achievements of its goals.

Systems Developed by I.T Unit

Sales accounting system

General accounting system

Order processing system

Regional information system

Sales promotion system

Distribution management system

Procurement system

Human resource system



3.18 Finance Department

The finance department working at Fatimafert limited is responsible for all the sales collection

either sale is made directly through plants or through warehouses. The finance department is

divided into two sections

1. Sales accounting

2. General accounting

Specific Responsibilities of Sales Accounting

Maintenance of dealership records

Processing and banking of sales and proceeds received from sales force for the sales of

fertilizers

Transfer of data to plants for shipment

Transfer of funds to head office recording of invoice for sales ex-warehouse

Receiving data from plants for direct sales

Processing of bank guarantees for secured credit sales

Preparation of pricing and discount structure for fertilizer

Receiving data from plants for warehouse shipment

Recording of stock movement reports

Overall reconciliation of stock movement with intimation of head office

Follow up of receivables for sale through rail

Sending the information regarding dealers balance to field force for recovery of receivables

on various accounts

Specific Responsibilities Regarding General Accounting

Payroll of permanent and temporary staff employees.

Deduction of income tax from payroll and deposition in govt. treasury.

Forwarding details of provident fund contribution of permanent employees to head office.

Forwarding of L/C opening request to head office for import of fertilizer.

Processing of export related documents.

Deduction of income tax from various supplies and deposits into govt. treasury.

Maintenance of books of accounts including fixed assets, supplies, employees etc.

Payment of telephone, electricity and medical bills.

Payment in respect of bags and line of imported fertilizer.

Clearing and forwarding charges in respect of import of fertilizer.



3.19 Planning Department

The planning department is integral part of Fatimafert Limited. Senior executive planning who is

responsible to SMSM heads it. The department coordinates the activities of all other departments

in the marketing division. Major responsibility of the department is collection of information about

competitors and analyzing their strategies.

Function

Coordination and development of annual business plan.

Provision of historical information to regions and senior sales managers for developing

sales forecast.

Finalizing sales forecast with coordination related sales force.

Preparation of fertilizer data book.

Monitoring international fertilizer price trend.

Preparing Pakistan industry urea market participation reports.

Preparation of fertilizer industry report.

Reviewing Fatimafert sales performance on quarterly basis.

Develop plans for training of officers.

3.20 Farm Advisory Services

Fatimafert Limited has been providing Agricultural Advisory Services to the farming community

throughout Pakistan, for increasing the agriculture production in general and the farmers’

economic returns in particular. Our organization 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.

3.21 Production Department

Production manager is the head of the department who report to the assistant general manager

plant. The controlling and supervising of ammonia and urea’s production is the main function of

this department.

3.22 Technical Department

The function of this department includes providing technical support to the company.it

continuously work 24/7, that makes it understandable that it is one of the most important

department of the organization



3.23 Engineering Department

Engineering manager is the head of this department. The engineering manager report to the

assistant general manager plant. The main function of this department is providing support to if

there is a machinery failure or any sort of plant failure. Providing continuously supply of electricity

is one of the foremost duties of this department along with the smooth running of the plant.

3.24 Safety and Training Department

This department involves safe atmosphere to the workers of the company and introducing regular

training for the personnel growth of the worker. Programs for engineer have also been managed

by this department.

3.25 Support Service

Support Services department is responsible for ensuring following logistic and administrative

supports to business:

Office Management

Transport Management

Inventory Management

Café Management



Part 4: Plan of Your Internship Program

4.1 Brief introduction of the branch

Plant site also have a HR department but work is done in small scale. The main work is done in

head office. there is coordinator of HR in the plant site that handles the work in plant. But the

recruitment of employees interviews hiring etc. is done in head office. But training is given to the

engineers in the plant site. Because the training given to the engineers is related to production of

Urea, ammonia, and DAP and production is done in plant site.

The Major Responsibilities of HR in Fatimafert ltd are:

Rotating the employees

Arranging medical facilities

Providing facilities regarding reactions

Providing transport to the workers and employee at the plant

Providing facility like mess cafeteria for workers and employees at plant

Maintaining a good relation between employers and employee and settling down at their

matters

Negotiations with’ fatimfert ltd union; that is the worker’s union at Fatimafert ltd

4.2 Internship at Fatimafert Ltd

I have got the opportunity to work in Fatimafert limited HR Department as an intern for 8 weeks

from August 24,2016 - October 23, 2016; it’s a part of my internship program. As my major is

Human Resource Management, I worked in Human resource department as an intern where I had

learnt several Human Resource practices of Fatimafert Limited.

Starting and ending dates of internship

24 AUGUEST 2016 -23 OCTOBER 2016

HUMAN RESOURCE DEPARTMENT (Fatimafert Ltd)



Part 5: Training Program

5.1 Human Resources Division of Fatimafert Ltd

Fatimafert Limited recognizes that a productive and motivated work force is a prerequisite to

leadership in the market it serves. The organizational human resources policy emphasizes on

providing job satisfaction, growth opportunities, and due recognition of superior performance. A

good working environment reflects and promotes a high level of loyalty and commitment from the

employees. Realizing this, Fatimafert limited has placed the utmost importance on continuous

development of its human resources, identify the strength and weakness of the employee to assess

the individual training needs, they are sent for training for self-development. To orient, enhance

the knowledge of the employees fatimafert ltd organizes both in-house and external training.

Human Resource division of fatimafert ltd is taking care of total function for all employees. The

HR Department of Fatimafert Limited has following functions to perform

The recruitment of employees.

Performance management

To determine the wages and salaries of employees.

To arrange transfer of employees to different sections

To arrange provision for medical facilities.

To arrange provision for recreational facilities.

To provide facilities of canteen and cafeteria to workers and supervisors at plant site.

To provide necessary transport to employees who work at plant site

To carry out negotiations with the worker’s union name "Fatimafert Limited Union".

To settle down all the matters arising during ordinary course of business relation to manpower.

To maintain cordial relation between the employees and the employers.

Employee attendance

To maintain desired air of confidence in order to have such friendly atmosphere in which team

spirits should prevail within the company.



HR Policy Formulation

Fatimafert ltd emphasis on HR policy formulation for nor only own department but also for the

other departments.

HR Planning

Fatimafert ltd establishes both short term and long term planning for the organization.

Short Term HR Planning

Fatimafetr ltd primarily recruits its human resources that will support Strategic Human Resource

Planning for current period.

Long Term HR Planning Here Fatimafert ltd is looking forward to build long term resources by several Training and

Development programs

HR Info System

fatimafert ltd. uses several software to ensure HR Info System includes:

Vista HR Manager &

Vista TAS

Work and Job Analysis, Design and Evaluation

For every job there are work and Job analysis, design and evaluation at fatimafert ltd so that jobs

are well defined.

Career Management

Career management is also important part of fatimafert ltd. For every employee, after one year

his/her job is being evaluated for long term perspective.

Employee and Management Training and Development

Fatimafert ltd offers several in house and external Training program for the employees.

Counseling, Discipline and Separation

Fatimafert ltd believes in proper counseling for any problems or prosperity of its employees. It is

also very strict in Disciplinary actions and separations process. For every problem Fatimafert ltd

operates proper investigations and employee separation is very friendly and quick.



Performance and Quality Management

Every employee’s performance is monitored by his/ her line manager and reviewed by HR

department.

Remuneration and Benefits Fatimafert ltd has a good structure of Remuneration and benefits for employees which are very

lucrative in the market.

University Internships

Fatimafert ltd with expert advice, information, and tools to assist with the development and

implementation of sustainable policies and practices offers internships to Masters and Bachelor

level university students as part of its recruitment strategy. Using the internship program,

fatimafert ltd can target students who excel academically and provide them with the opportunity

to obtain practical work experience. This helps to train and develop the skill sets of interns at an

early stage of their career while giving the company an opportunity to gauge the intern’s skills,

abilities, and inner drive. The program has proven beneficial to both the interns and the company,

and is one-way Stratus is helping build the capacity of new graduates in the environment industry.

Performance Appraisal

Performance appraisal system of fatimafert ltd is very efficient in terms of evaluation. The main

intention of the system is to evaluate the employee’s performance of the job. Performance appraisal

is conducted for an employee after completion of one-year service in the channel. Based on the

evaluation Fatimafert ltd offers the employees Increment, if the performance is satisfactory. If the

performance is not satisfactory, the employee may be warned for that and asked to perform better.

Compensation

Compensation is an important issue in fatimafert ltd. Here, HR department uses a software-

“VistaHR manager” to process Compensation for all employees. Here, for every employee there

are two parts in salary payment, one is addition and another is deduction. Under addition part, 50

% is basic salary and other 50% is divided into House rent, Medical facilities, Conveyance, and

Miscellaneous costs. On the other hand, in deduction part, there are provident funds, income Tax,

absent and leave without pay deductions dependent television also offers Promotion for

employees.

Employee Relations

Fatimafert ltd emphasis on wonderful employee relations with long term perspective, so that the

employees retain for many years. Fatimafert ltd. is careful on ethics, justice and fair treatment for

every employee in order to ensure employee relations

These two policies indicate that Fatimafert ltd is highly motivated to ensure ethics in workplace.

Ethically Fatimafert ltd is very committed that all employees will get fair treatment in every aspect

of work life. Justice is also a very important concern of Fatimafert in every cases, fatimafert ltd

ensures justice for all employees.



Leave Management System Leave management ensures that all leave taken and leave requests are properly accounted for.

Office staffs can apply, approve and view leave records without the hassle and delay of going

through the admin staff ‐ it's all at your ID card with anytime, anywhere access.

Organization Leave Policy masters.

Yearly Leave & Holiday Set‐up.

Employee leave master (with eligibility for applicable leaves)

Leave Application (by Employee)

Leave Application (by Front office/HR)

Approval / Rejection.

Request for cancellation of applied leave.

Leave Approval/Rejection & cancellation.

Leave encashment.

Special grants.

Reports.

Security

User can login into system using their corporate email credentials. This application is accessible

only with in office intranet. Application encrypts all essential information before storing it into

database for better protection of data.

Health and Safety at Work

A young worker or employee must do an assessment of possible health and safety risks, before

they employ in this organization. They must pay particular attention to their age, lack of

experience, and other things that could be a risk to their health and safety.

Holidays

Employees are legally entitled to paid holiday in the same way as other workers. How much paid

holiday they get depends on how many days they work and when they leave year begins.



5.2: Description of Tasks and Duties at Internship

I worked in HR department of Fatimafert limited where I oversee all the activities which are being

performed in HR.

Tasks Performed and Duties Held

Week 1

Manage Employee data base

Learn how to handle the matter of misconduct

Leaves sheet working

Week 2

Manage all letters from appointment to Final Settlement according to their departments and

Employee codes.

Week 3

Work on medical bills and leaves record

Conduct apprenticeship test (DAE Electrical, mechanical and electronics)

Week 4

Prepare all forms and formats related to Employment

Hiring of apprenticeship trainees

Week 5

Work on excel (minimum wage, attrition analysis, budgeting)

Week 6

Hiring process (MEDICAL CONSULTANT, ENGINEER, trainee engineers)

Week 7

Learn how to calculate the variable pay of the employees and social security

Week 8

Got familiar with EOBI website and Training conduct (Brand your Self)



5.3 Learning and Achievements at Internship

It was a wonderful opportunity for me to work in Fatimafert Limited. I was being placed in the

HR Department of the very firm. My learning experience has been amazingly great and varied

throughout. Some ambiguities which I had about HR, they got away and I was able to gain a lot

out of it. The duties and tasks performed by me are learning activities for me which I tried to

perform in an effective manner and expect that this learning will help me in future.



Part 6: Structure HRM Department

6.1 Department Hierarchy

Plant site also have a HR department but work is done in small scale. The main work is done in

head office. there is coordinator of HR in the plant site that handles the work in plant. But the

recruitment of employees, interviews, hiring etc. is done in head office. But training is given to the

engineers in the plant site. Because the training given to the engineers is related to production of

Urea, ammonia and DAP and production is done in plant site.

TASKS

Group life insurance (EFU)

EOBI (employee old age benefit Incentives)

Social security or medical insurance.

Intrinsic and extrinsic Benefits

Provident fund

Gratuity fund

Life insurance (for employees having PKR 18000 salary or below)

Social security (for employees below Grade M-6 and above Salary 18000)

House loan

Emergency loan

Car loan

Children education

Generator (for M-1 ,M-9)

Employee of the month(Appreciation Award)

Laptops

Mobile phones and Sims

Overtime compensations

Pick and drop facility

Bike loan



6.2 Number of employees working under HR department

HR Departement

Zahid Rafique

(HRBP)

Farooq Ahmad

(HR Coordinator)



Part 7: Marketing Functions (4P’s of the organization)

Major Components of Marketing Mix are:

Product

Price

Place

Promotion

7.1 Products/Services Offered

UREA

DAP

AMMONIA

Brand Name

BABBER SHER

Tag Line

TAAZA OOR TAQATWAR

7.2 Pricing Strategies

Depend upon;

Local and global demand &supply

Raw material

Govt. policies

http://fatima-group.com/ffl/product_detail.php/urea



7.3 Place/ Distribution Channels

The product is distributed directly from the plants. There is a great demand for fertilizer in the

country and the company is having orders in advance. But to make the whole system very smooth,

company is having well-structured distribution department which coordinates with the carriers

both with the companies and the individuals. Because fertilizer is required in all parts of the

country and Fatimafert limited being a national firm take it as obligation that its product is

distributed throughout the country. The company also ensures that prices of its products do not

vary in any part of country because of transportation cost for this company gives some discount to

those dealers who are far-flung areas.

The distribution department makes contract with the private contractors to accomplish the task.

The contractors are responsible for any loss of the product on the way. The management also pay

surprise visit at dealer’s shops to ensure that the quantity in the bags, quality and the price are same

as suggested by the company policy.

Distribution Department is major department helping the sales force. Primary function of

Distribution dept. is to ensure effective and efficient distribution of product from plants to final

customer

Fertilizer market

Grain market

Pak railway

Private trucking contracting

7.4 Promotion

Different Medias used at Fatimafert Limited for Promotion

Television

Radio

Print media

Road side

Point of purchase

Farmers meeting

Campaigns

Kharif campaign

Rabi campaign

Radio

National radio channel

Ad duration 10-60 seconds

All around the year



Print Media

National daily’s

Regional newspapers

International magazines

National magazines

Regional cultural magazines

Ad size 108 pcm

Road Side Advertisements

Jumbo hoardings

Bill boards

Warehouse boards

Dealers shops boards

Plastic whole signs

Point of Purchase

Crop posters

Corporate posters

Crop booklets

Zari reports

7.5 PEST Analysis at Fatimafert limited

Political Instability:

The political situation of Pakistan is not satisfactory. Due to the rapid change in the

Government every government sets its own new trade policies. Govt. should apply

sustainable policies for the beneficial of the exporters as well as the investors.

Economic Situation:

The economic condition of Pakistan can also affect the foreign investors increasing

inflation rate make the cost of production high and thus reduce the profit margin of the

investor.



Social Situation:

The change in the lifestyle of the people affects the growing demand of the Fatimafert

limited products. The change in the lifestyle and needs in different demographics also

affect the demand of the customers. Due to all these changes Fatimafert limited is

performing excellent for the excellence organization as well as for the customer.

Technological Factor:

Technological advancement in all the sectors of the country has changed the entire socio-

economic environment. Especially in the fertilizer sector there is a lot of technological

development. High technology is the basic requirement of fertilizer industry. The

Fatimafert limited is using latest technology have some cost benefits over the companies,

which are not using high technology. The key to survival for companies in this industry is

using high technology for quality and cost purposes.



Part 8: Financial Analysis

8.1 Share Holding Information

Fatimafert Limited

Pattern of Share Holding as at September 30, 2016

Name of Shareholder NO of shares

Directors

Mr. Fawad Ahmed Mukhtar 1

Mr. Arif Habib 1

Mr. Fazal Ahmed Sheikh 1

Mr. Faisal Ahmed Mukhtar 1

Mr. M Abad Khan 1

Mr. Muhammad Kashif Habib 1

Parent Company

Fatima Fertilizer Company Limited 99,999,994

Total 100,000,000



8.2Tentative Financial Calendar

The schedule of the events/meetings/webcasts etc. of the company for the current financial

year.

Meeting Date of Meeting

BOD Meeting for Budget approval 2016 January 29, 2016

BOD Meeting for year ended 2015 Financial Results March 16, 2016

BOD Meeting for Qtr 1, 2016 Financial Results April 27, 2016

BOD Meeting for Qtr 2, 2016 Financial Results August 18, 2016

BOD Meeting for Qtr 3, 2016 Financial Results October 27, 2016

BOD Meeting for Budget approval 2017 3rd week of December, 2016

BOD Meeting for year ended 2016 Financial Results 4th week of January, 2017



8.3 The Ratios:

Vertical Analysis (Common size statements)

Horizontal Analysis (indexed analysis)

Ratio Analysis

Liquid ratios

Coverage ratios

Activity ratios

Profitability ratios

Market ratios

Financial Analysis

A ratio analysis is a quantitative analysis of information contained in a company’s financial

statements. Ratio analysis is based on line items in financial statements like the balance

sheet, income statement and cash flow statement; the ratios of one item – or a combination of items

- to another item or combination are then calculated. Ratio analysis is used to evaluate various

aspects of a company’s operating and financial performance such as its efficiency, liquidity,

profitability and solvency. The trend of these ratios over time is studied to check whether they are

improving or deteriorating. Ratios are also compared across different companies in the same sector

to see how they stack up, and to get an idea of comparative valuations. Ratio analysis is a

cornerstone of fundamental analysis.



Balance Sheet

EQUITY AND LIABILITIES 2015 2014

EQUITY Share Capital 12722 12722

Capital Reserve 160 160

Revenue Reserve 12788 12269

25670 25151

NON - CURRENT LIABILITIES Long term borrowings 2500 4280

Deferred Taxation 4574 4078

7074 8358

CURRENT LIABILITIES Trade and other payables 37904 21854

Interest and mark - up accrued 30 22

Short term borrowings 11603 7000

Current portion of long term

borrowings 1780 1460

Taxation 2501 3984

53818 34320

TOTAL EQUITY AND

LIABILITIES 86562 67829

ASSETS NON - CURRENT ASSETS Property, plant & equipment 20094 18444

Intangible assets 1611 1652

Long term investments 28135 20662

Long term Loans & advances 823 740

Long term deposits & prepayments 16 3

50679 41501

CURRENT ASSETS Stores, spares and loose tools 3315 3245

Stock in trade 928 302

Trade debts 822 701

Loans and advances 1059 921

Deposits and prepayments 26 47

Other receivables 1072 790

Short term investments 27433 18960

Cash and bank balances 1174 1362

35829 26328

Total assets 86562 67829



Horizontal Analysis: Balance Sheet

EQUITY AND LIABILITIES 2015 2014vs2015% 2014

EQUITY Share Capital 12722 12722

Capital Reserve 160 160

Revenue Reserve 12788 4.23 12269

25670 2.06 25151

NON - CURRENT LIABILITIES Long term borrowings 2500 -41.59 4280

Deferred Taxation 4574 12.16 4078

7074 -15.36 8358

CURRENT LIABILITIES Trade and other payables 37904 73.44 21854

Interest and mark - up accrued 30 36.36 22

Short term borrowings 11603 65.76 7000


borrowings 1780 21.92 1460

Taxation 2501 -37.22 3984

53818 56.81 34320

TOTAL EQUITY AND

LIABILITIES 86562 27.62 67829

ASSETS NON - CURRENT ASSETS Property, plant & equipment 20094 8.95 18444

Intangible assets 1611 -2.48 1652

Long term investments 28135 36.17 20662

Long term Loans & advances 823 11.22 740

Long term deposits & prepayments 16 433.33 3

50679 22.12 41501

CURRENT ASSETS Stores, spares and loose tools 3315 2.16 3245

Stock in trade 928 225.17 302

Trade debts 822 17.26 701

Loans and advances 1059 14.98 921

Deposits and prepayments 26 -44.68 47

Other receivables 1072 35.77 790

Short term investments 27433 44.69 18960

Cash and bank balances 1174 -13.8 1362

35829 36.29 26328

Total assets 86562 27.62 67829



Horizontal Analysis of Balance Sheet

There is an increase in cash and bank balance during 2014-2015, which is of 36.29% there is

overall increase in Total assets. Total liabilities have increased by 27.62%which is due to increase

in stockholder’s equity increased by 46.3%. company is attracting more capital from investors in

order to expand its operations.



VERTICAL ANALYSIS: Balance Sheet

2015 2014 EQUITY AND

LIABILITIES Rs. % Rs. %

EQUITY Share Capital 12722 14.7 12722 18.76

Capital Reserve 160 0.18 160 0.24

Revenue Reserve 12788 14.77 12269 18.09

25670 29.66 25151 37.08

NON - CURRENT

LIABILITIES Long term borrowings 2500 2.89 4280 6.31

Deferred Taxation 4574 5.28 4078 6.01

7074 8.17 8358 12.32

CURRENT LIABILITIES Trade and other payables 37904 43.79 21854 32.22

Interest and mark - up accrued 30 0.03 22 0.02

Short term borrowings 11603 13.4 7000 10.32


borrowings 1780 2.06 1460 2.15

Taxation 2501 2.89 3984 5.87

53818 62.17 34320 50.6

TOTAL EQUITY AND LIABILITIES 86562 100 67829 100

ASSETS NON - CURRENT ASSETS Property, plant & equipment 20094 23.21 18444 27.19

Intangible assets 1611 1.86 1652 2.44

Long term investments 28135 32.5 20662 30.46

Long term Loans & advances 823 0.95 740 1.09

Long term deposits & prepayments 16 0.02 3 0

50679 58.55 41501 61.19

CURRENT ASSETS Stores, spares and loose tools 3315 3.83 3245 4.78

Stock in trade 928 1.13 302 0.45

Trade debts 822 0.95 701 1.03

Loans and advances 1059 1.22 921 1.36

Deposits and prepayments 26 0.03 47 0.07

Other receivables 1072 1.24 790 1.16

Short term investments 27433 31.69 18960 27.95

Cash and bank balances 1174 1.96 1362 2.01

35829 41.45 26328 38.82

Total assets 86562 100 67829 100



Vertical Analysis of Balance Sheet

Vertical analysis shows that there is a decrease in the capital from year 2014 to 2015 which is

18.76 to 14.70; this significant increase shows that people are willing to invest in the business of

the company.

There is also decrease in the reserves of the company due to which the worth of the company has

been decreased.

Some of the current liabilities of the company are increasing with the minor fractions but some of

the current liabilities (trade payables, short term borrowings) showing a little bit higher increase,

which means these liabilities are increasing, but are backing up the short term investments and

some of the other current assets.

There is an overall decrease in the assets of the company in 2014 as compared to2013, including

fixed and current assets, but some of the current & fixed assets are also increasing at the same

time. But the company is using its assets productively in its operations

Profit & Loss Account Rs. In million

2015

15 vs.

14 2014

Rs. % Rs. Sales 81240 9.07 74481 Cost of Sales 50137 25.5 39949 Gross Profit 31103 -9.93 34532 Distribution Cost 6431 4.28 6167

24672 -13.02 28365 Finance cost 849 12.3 756 Other expenses 2303 -9.97 2558

21520 -14.1 25051 Other Incomes 4721 8.08 4368 Net Profit before

Taxation 26241 -10.8 29419 Provision for taxation 8070 -13.08 9284 Net Profit after taxation 18171 -9.75 20135

Horizontal Analysis of Income Statement:

During 2014-2015 there is a significant increase in cost of goods sold by 25.50%.

Financial charges have been increased by 12% which is bad sign for the company and it is due to

decrease in the equity financing. Net profit decreased by9.75.



Profit & Loss Account Rs. In million

2015 2014

Rs. % Rs. % Sales 81240 100 74481 100 Cost of Sales 50137 61.71 39949 53.64 Gross Profit 31103 38.29 34532 46.36 Distribution Cost 6431 7.29 6167 8.28

24672 30.37 28365 38.08 Finance cost 849 1.5 756 1.02 Other expenses 2303 2.83 2558 3.43

21520 26.49 25051 33.63 Other Incomes 4721 5.81 4368 5.86 Net Profit before

Taxation 26241 32.3

29419 39.5 Provision for taxation 8070 9.93 9284 12.46 Net Profit after taxation 18171 22.37 20135 27.03

Vertical Analysis of Income Statement:

There is a very slight increase in the sales but as compared to that increase there is a huge increase

in the cost of goods sold, due to which decrease in the gross profit, at the same time increase in the

other incomes and increase in the operating & financial costs leading to a huge decrease in the

profits of the company.



8.4 Ratio Analysis

Profitability Ratios

Rise in cost of sales owing to increased raw material cost and GIDC resulted in a reduction in

gross and net profit margins for 2015, 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 2014. Excluding exceptional performances in 2012 and 2013,

profitability ratios of the Company were in concurrence with overall performance during the 6

years.

Operating performance / Liquidity

Current ratio for 2015 depicted a minimal decrease of 0.10 times as compared with 2014 due to

increase in trade creditors, while ‘cash to current liabilities’ and ‘cash flow from operations / sales’

witnessed an increase of 0.04 times and 0.06 times respectively (excluding 2012 & 2013) over the

historic average of 6 years.

Activity / Turnover Ratios

Inventory turnover days were in line with past trends at 2 days, while debtor turnover days

improved in comparison with last year and were consistent with the historic average of 3 days over

the past 6 years (excluding 2012 & 2013). Number of days in payables stood at 124 days due to

non-payment of GIDC under various Court decisions, however, number of days without

considering GIDC payable remained at 3 days against average of 6 days over last six years. Total

asset turnover ratio recorded at 0.94 times was in line with the historical 6-year average of the

Company but recorded a decrease of 0.16 times as compared with 2014.

Investment / Market Ratios

As a result of decline in profits, the Company’s earnings per share were recorded at Rs. 14.28 per

share. Price to earnings ratio however improved by 1.13 times as compared to 2014 as the market

price of Company’s share rose from Rs. 111.96 at the close of 2014 to Rs. 117.11 for the year

ended December 31, 2015. Dividend payout ratio for 2015 was recorded at 95.57% against an

average of 97% for the 6 years, to maintain a steady stream of income for the shareholders.

Consequently, the Company recorded a total cash dividend per share of Rs. 13.65 for the year.



Capital Structure Ratios

Financial leverage ratio of 0.62 times for 2015 is consistent with the average for the past 6 years.

Debt to equity ratio improved to 9:91 indicating the lowest amount of long term debt in the last 6

years. Company’s interest cover ratio doubled to 32 times in comparison with 15 times in 2010 as

a result of lower finance cost to profitability ratio.

DuPont Analysis

Net profit margin of the Company decreased to 22% during the year as compared to 27% in 2014

as a result of increase in raw material cost and GIDC. Asset turnover and ownership ratio reduced

to 0.94 and 9.6% respectively in 2015 owing to an increase in the asset base of the Company,

primarily on account of an increase in long term investments. Consequently, the Company reported

a return on equity of 71% in 2015 compared to 80% last year.



Part 9: Critical Analysis (HRM)

Management Practices at FATIMAFERT

LIMITED (formally DH fertilizer limited)

9.1 Human Resource Planning

HR planning is an important component of strategic HR Management that guides them to achieve

their goals or meeting their missions. It is done for the success of firm while meeting the needs of

employees and other stakeholders. HR planning also plays an important role from budgetary point

of view so that it can factor the cost of Recruitment, training etc. into an organization’s operating

budget.

Firstly, skills, knowledge and abilities are to be identified of an individual employee through skill

inventory or through their JD’s in Fatimafert limited paints. HR requirements are to be forecast

according to it in which skills are to be identified to achieve goals of an organization. Later on jobs

are to be filled according to it. Individual assessment of an individual employee is done by internal

audit which analyze the gaps in which following things are to be analyzed.

What new jobs will we need?

What new skills will be required?

Do our present employees have the required skills?

Are employees currently in positions that use their strengths?

Do we have enough managers/supervisors?

Are current HR management practices adequate for future needs?

9.2 Job Analysis

Job Analysis is a technical and managerial tool used for gathering or analyzing information about

the jobs and other units of work. It is used to identify the knowledge, skills and expertise for

performing the job assignments in an effective manner.

Component of Job Analysis

There are two major aspects of job analysis:

These are:

Job Description

Job Specification



Job Description is an important document, which is basically descriptive in nature and contains a

statement of job Analysis. It provides both organizational information’s (like location in structure,

authority etc.) and functional information (what the work is).

It gives information about the scope of job activities, major responsibilities and positioning of the

job in the organization. This information gives the worker, analyst, and supervisor with a clear

idea of what the worker must do to meet the demand of the job.

Contents of Job Description:

Following are the main content of a job description it usually consists of following details or data.

Job Description: A statement containing items such as

Job title / Job identification / organization position

Location

Job summary

Duties

Machines, tools and equipment

Materials and forms used

Supervision given or received

Working conditions

Hazards

Job Specification:

Job Specification translates the job description into terms of the human qualifications, which are

required for performance of a job. They are intended to serve as a guide in hiring and job

evaluation.

Job specification is a written statement of qualifications, traits, physical and mental

characteristics that an individual must possess to perform the job duties and discharge

responsibilities effectively.

In this, job specification usually developed with the co-operation of personnel department and

various supervisors in the whole organization.

Purpose of Job Analysis

The purpose of Job Analysis is to establish and document the 'job relatedness' of employment

procedures. The information which is collected by conducting job analysis plays an important role

in controlling the output of the particular job. It also helps in recruiting the right people for a

particular job. The main purpose of conducting this whole process is to create and establish a

perfect fit between the job and the employee.



Job analysis also helps HR managers in deciding the compensation package and additional perks

and incentives for a particular job position. It effectively contributes in assessing the training needs

and performance of the existing employees. The process forms the basis to design and establish

the strategies and policies to fulfill organizational goals and objectives.

Methods of Job Analysis

Several methods exist that may be used individually or in combination. These include:

review of job classification systems

incumbent interviews

supervisor interviews

expert panels

structured questionnaires

task inventories

check lists

open-ended questionnaires

observation

incumbent work logs

Then such HR strategies are developed which support organizational strategies.

9.3 Recruitment and Selection Procedures

Recruitment process starts after analyzing the gap which is done in HR planning process. After

analyzing the gap, manpower budgeting is done in which prescribed budget is given to different

departments according to which new jobs are created or to be filled. HR Requisition form provided

to managers of different departments in which required employee criteria is provided to Human

resource so that they can target such employees in effective manner. Later on, it is to be analyzed

that for what position we are hiring which is provided by managerial level. Fatimafert limited is

using both formal and informal method to select pool of candidates according to prescribed criteria

given by department heads. After receiving Curriculum Vitae or Resume’s we shortlist the list of

candidates which are according to required criteria. Later on schedule the interview for the post.

Then we conduct an interview. Rating form is given to manager with their CV or resume so that

they can such person. If a person is selected after getting through this process, then we offered

them post.

http://www.job-analysis.net/G010.htm






9.4 Orientation of New Hires

In Fatimafert limited, 2 to 3 days’ orientation is provided to new employee. It is done to prepare

employees to do their job in an effective manner, at the same time help them to learn about the

organization and perform work relationships. Orientation helps them to understand organization’s

culture and operations of an organization. In orientation program factual information is

communicated about pay and benefits, reviewing company rules and policies, and completing

paperwork. Managers of different departments play an important role in orientation plan by giving

them an overview regarding their field which enhances their learning for new job. HR has overall

responsibility for program planning and follow-up and must coordinate with the immediate

supervisor to avoid duplication or omission of important information. After completing the

orientation program, then HR representatives review a checklist of items with employees to ensure

all items have been covered. Feedback from everyone involved in the process which is done

through roundtable discussions with new employees.

9.5 Training & Development of Employees

Employee development is a shared responsibility which is performed by management and the

individual employee. The role of management is to provide the right resources and such an

environment that supports an employee in his growth and development needs. A well-crafted job

description is the foundation upon which employee training and development activities are built

in Fatimafert limited Paints. Supervisor’s responsibility is to provide required training to

employees to meet basic competencies for the job. At the same time to look for the learning

opportunities that everyone could learn from which could be an incident with a client. Identify

goals and activities for development and prepare an individual development plan.

In Fatimafert limited there are about 2 type of trainings that are undertaken:

In-house training

Out house training

In-house Training:

This is the type of training which is undertaken internally without any assistance from the external

training institutes. In Fatimafert limited it is done by the following way:

Workshops

Job rotation

Seminars

Training of the MTEs for one year while placing them in multiple departments to get them

familiar of the business operations of the firms. An induction plan is made for the various

orientations that are to be given to the MTEs.



Outhouse Training:

Fatimafert limited also takes into account the external training programs while seeking help from

the external training institutes. For that matter a TNA (Training need analysis) is prepared by the

end of June and July. Training needs analysis is the primary phase in training process and

comprises of a process to establish whether training will certainly tackle the problem, which has

been identified. Training analysis looks at each aspect of an operational domain so that the initial

skills, concepts and attitudes of the human elements of a system can be effectively identified and

appropriate training can be specified.

9.6 Performance Management

Fatima Group aims to build a high performance culture across all its businesses. Performance

Management sets a systematic way of progress review, goal setting, recognizing and rewarding

achievements, communication, providing effective and valuable feedback on individual

performance, and implementing employee development programs.

PERFORMANCE MANAGEMENT PROCESS FLOW

Setting Objectives & Development Plan

Set the SMART objectives around employee’s current role / job description.

Identify opportunities to strengthen development areas.

Discuss and finalize objectives and development actions with Line manager.

Mid-year Review

Evaluation of progress

It proactively identifies performance issues, obstacles and rework plans as necessary.

Re-evaluating priority and appropriateness of objectives

Adjust goals if organizational or departmental needs have changed.

Year-End Discussion

Self-Assessment

Employee completes for each objective along with a self-assessment of his/her progress against

agreed development actions.



Calibration Meetings

Process ensures that managers determine their ratings using a standardized rationale. It is a meeting

held by groups of managers and their next higher manager. Meetings deliver

Consistency in defining employees’ overall (comparative) ratings

Common benchmark and understanding of the ratings definitions.

Overall quality and distribution of ratings for entire group.

Ratings Feedback to Employee

Ratings are finalized after the calibration meetings. The manager thereafter holds year-end

discussion and gives detailed feedback on his/her performance.

9.7 Compensation & Benefits Policies

Employee benefits also known as perks comprise of various types of non-wage compensation

provided to employees in addition to their normal wages or salaries. This actually provides a

cornerstone to the employees to work hard to get something over and above their salary and

motivates them to work.

Likewise, Fatimafert limited also gives employee benefits and compensations to its employees. A

few are mentioned below:

Intrinsic and extrinsic Benefits

Provident fund

Gratuity fund

Life insurance (for employees having PKR 18000 salary or below)

Social security (for employees below Grade 6 and above Salary 18000)

House loan

Emergency loan

Car loan

Children education

Generator (for grade 11 and above)

Employee of the month (Appreciation Award)

Laptops

Mobile phones and Sims

Overtime compensations

Pick and drop facility

Bike loan

There are a few things which are mandatory to seek as per law. These are mentioned below:

Group life insurance

EOBI (employee old age benefit Incentives)

Social security or medical insurance.



Part 10: SWOT Analysis

10.1 Internal Factors (S T)

Strength

Goodwill of "Bubber Sher" trademark'

Availability of Gas at subsidized rates'

Well established organizational set up

Availability of Technical and managerial expertise in all disciplines

Repute of the company

Solid financial position

State of the art production facility

Competent and committed human resource

Brand preference

Skilled work force

Experienced business unit

Well organized marketing network

High market share in market overall Pakistani market

A strong leadership network for distribution

Self-power generation

Weaknesses

No guarantee on feedstock price and supply

Linkage of gas supply to plant with millions of domestic consumers on the main supply

line'

Low capacity of the plant - Mega plants



No promotional activities are done by the company

operating in Middle East and in Pakistan as well

Higher maintenance cost due to old equipment

Less market share

High loan rate are possible

Narrow product line

Fixed customers base

No substantial capacity enhancement or new plant on line for the last 35 Years'

10.2 External Factors (O T)

Opportunities

Cushion for enhancement in urea production to fill the demand & supply gap

improvement in Water Management System by GOP

All the tools of plant available for erection of new plant

Land for new Plant available

Low customer bargain power

Opportunity to export fertilizer

New products and services

Less potential for new entrants in the industry

Give more benefits to dealer to gain more market share

Vast experience gained during BMRs n 1991 and 2006 can be utilized for future

expansion programs.

Threats

Subsidy on feedstock may be abolished by Government

Duty free imports of urea from mega producers in Middle East

Allocation of gas by GOP for setting up new fertilizer Plants

DAP Fertilizer being subsidized to increase its consumption.

Growing number of companies coming in business

Their competitors are giant competitors due to this future competition will be tough

Natural climate and other disturbance in country including political factors may affect the

profitability of company

Technological problems

Tax changes

Cash flow

This SWOT Analysis of Fatimafert Limited provides a strategic SWOT analysis of the company's

businesses and operations. This free SWOT analysis shows strengths, weaknesses, opportunities

and threats. This SWOT analysis of Fatimafert Limited can provide a competitive advantage.



Conclusion

Fatimafert limited (formerly DH Fertilizer limited) views excellence as the market leader in the

fertilizer having 60% of the market share. Company being the market leader sets standards for the

industry. The company continues to enhance the facility of providing farmers free farm advisory

services through farm advisory centers. Fatimafert limited is using a single brand name BABBER

SHER for its products. Fatimafert limited is only Fertilizers Company in the industry conducting

seminars on core agricultural issues, inviting local and foreign luminaries. Company is fully

automated having the extensive information systems for the plant site as well as the marketing

division, countrywide location of plants.

Fatimafert hold themselves accountable for effective HRM systems and adherence to the Merit

System Principles (as appropriate) or other organizational values and policies. In sum, the

organizational performance of Fatimafert could be explained by its effective recruitment and

selection practices and performance appraisal practices.



Recommendations

It is recommended that Fatimafert limited should use its position as a market leader in the fertilizer

sector and expand its operations in other countries as well. Neighboring countries like Afghanistan

and Iran are ideal for this type of expansion. Fatimafert limited is also advised to maintain its

quality because in a situation like this it is very easy for a company to get complacent and start

neglecting the quality of its products.

There is shortage of gas supply to the company which is basic raw material of urea production .so

that production of company effected. Company should make negotiation with gas suppliers and

consult with technicians to cope with situation.



References & Sources

www.fatima-group.com

http://fatima-group.com/ffl/

WWW.DH.ORG.COM

WWW.SCRIBED.COM

Organization marketing department

Organization Annual Report

Company planner

Internship reports on DH and Fatima group

Contact persons:

Sir Zahid Rafique (HRBP)

Sir Farooq Ahmad (HR Coordinator)

http://www.fatima-group.com/

http://fatima-group.com/ffl/

http://www.dh.org.com/

http://www.scribed.com/

Ujala Saif (Report) 3

Documents

Transcript of Ujala Saif (Report) 3