NURTURING
GROWTH
EMBRACING
SUSTAINABILITY
At Fatima Fertilizer, we believe that true progress lies at the intersection of growth and sustainability. As stewards of agricultural advancement, we are committed to enriching the land while ensuring its vitality for generations to come. Our approach combines advanced agricultural solutions with eco-conscious initiatives, ensuring that every harvest contributes to a healthier and more sustainable world.
As we move forward, our mission remains clear: to foster prosperity while preserving the environment, ensuring that every step we take leads to a greener, more sustainable future.
TABLE OF CONTENT
Key Highlights 2024 02
Vision & Mission Statement 04
Corporate Values 04
Code of Conduct 06
Overall Strategic Objectives 07
Management's Objectives 08
Nature of Business 08
Communication of Financial Results 09
Company Profile 10
Landmark Events 11
Company Information 12
Profiles of the Directors 14
Board Structure and Committees 18
Key Management 22
Organizational Chart 26
Business Review
Chairman's Review Report 28
CEO's Message 30
Directors' Report to the Shareholders 32
Annexures to Directors' Report 46
Statement of Economic Value Addition 52
SWOT Analysis 53
Corporate Governance 54
Notice of the 22nd Annual General Meeting 58
Marketing and Sales 64
Information Technology 68
Operational Performance 72
Sustainability Report 74
Health, Safety and Environment standards,
systems and policies 92
Talent Sustainability 94
Corporate Social Responsibility 100
Our Reporting Parameters 102
NURTURING
GROWTH
EMBRACING
SUSTAINABILITY
Separate Financial Statements
Report of the Audit Committee 104
Statement of Compliance 106
Independent Auditor's Review Report to the Members 108
Independent Auditors' Report to the Members 109
Statement of Financial Position 114
Statement of Profit or Loss 116
Statement of Comprehensive Income 117
Statement of Changes in Equity 118
Statement of Cash Flows 119
Notes to the Financial Statements 120
Consolidated Financial Statements
Independent Auditor's Report to the Members 181
Consolidated Statement of Financial Position 186
Consolidated Statement of Profit or Loss 188
Consolidated Statement of Comprehensive Income 189
Consolidated Statement of Changes in Equity 190
Consolidated Statement of Cash Flows 191
Notes to the Consolidated Financial Statements 192
Shareholders' Information
Statements under section 134(3) of the
Companies Act, 2017 251
Pattern of Shareholding 267
Form of Proxy 273
Form of Electronic Dividend Mandate (IBAN) 277
01
KEY HIGHLIGHTS 2024
2,795
MT in "000"
Fertilizer Production
2,523
MT in "000"
Fertilizer Sales
256,920
Rs in Million
Revenue
36,395
Rs in Million
Profit After Tax
17.33
Rupees
Earnings Per Share
7.00
Rupees
Dividend Per Share
22.97
Percentage
Return on Capital Employed
62,342
Rs in Million
Contribution to National Exchequer
02
Fatima Fertilizer Company Limited
Annual Report 2024
136
Combined Safe Million Man Hours
15,587
Numbers
Trees Planted
81
Numbers
Women Development
(Female Staff in Head Office)
NURTURING
GROWTH
EMBRACING
SUSTAINABILITY
266,423
Numbers
Agriculture Farms Addressed
1,036
Rs in Million
Investment in CSR
130,390
Man Hours
Investing in Manpower
2,224
Numbers
Permanent Employees
03
VISION & MISSION STATEMENT
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.
CORPORATE VALUES
These are the values that Fatima Fertilizer Company Limited epitomizes, and are reflected in all our transactions and interactions. Congruence to these values has been a part of our business strategy. They are bound in the very fabric of our organization, shaped by organizational processes, procedures and practices.
Integrity
Teamwork
Customer Focus
Valuing People
Our actions are driven by honesty, ethics, fairness and transparency.
We work collectively towards We believe in listening to our a common goal.
customers and delivering value in our products and services.
We value our people as our greatest resource.
Innovation
We encourage creativity and recognize new ideas.
Health, Safety, Environment & CSR
Excellence
We care for our people and the communities around us.
We strive to excel in everything we do.
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Fatima Fertilizer Company Limited
Annual Report 2024
NURTURING
GROWTH
EMBRACING
05
SUSTAINABILITY
CODE OF CONDUCT
Fatima Fertilizer Company Limited (Fatima) conducts its business with the highest ethical standards in full compliance with all applicable laws. Honesty and integrity take precedence in all relationships including those with customers, suppliers, employees and other stakeholders.
Ethics and Business Practices
• We believe in conducting the Company's business in a manner that respects, protects and improves the environment and provides employees with a safe and healthy workplace.
• We conduct our business in an environmentally responsible and sustainable manner. Employees must be completely familiar with the permits, Health Safety and Environment policy, local laws and regulations that apply to their work.
• All employees are expected to understand the laws and business regulations related to their work and comply fully so that our shareholders, employees, customers, suppliers, stakeholders and the Government have complete faith in the way we operate and that our business decisions are made ethically and in the best interests of the Company.
• Employees are obligated to act in accordance with the Company's code of Ethics and Business Conduct and are restricted to using only legitimate practices in commercial operations and in promoting the Company's position on issues before Governmental authorities. Inducements intended to reward favourable decisions and governmental actions are unacceptable and prohibited.
• Employees are prohibited from using their positions, Company property or information for personal gain, and from competing with the Company. Employees are also prohibited from taking advantage from opportunities that become available through the use of Company information, property or their position.
Assets and Proprietary Information
• We consider our Company's assets, physical and intellectual, very valuable. We have, therefore, an obligation to protect these assets in the interest of the Company and its shareholders.
• Protection of the Company's information is important for our business. All employees are expected to know what information is proprietary and which must not be disclosed to unauthorized sources. Employees are responsible for applying all available tools to manage the Company's information resources and records.
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Fatima Fertilizer Company Limited
Annual Report 2024
OVERALL STRATEGIC OBJECTIVES
Relations with Business Partners
• We seek to do business with suppliers, vendors, contractors and other independent businesses who demonstrate high standards of ethical business behaviour. Our Company will not knowingly do business with any persons or businesses that operate in violation of applicable laws and regulations, including Employment, Health, Safety and Environmental laws. We shall take steps to assure that our suppliers, vendors and contractors understand the standards we apply to ourselves, and expect the same from them.
Our Employees
• We believe that highly engaged employees are the key ingredient in professional development and business success. Therefore, we invite our employees to contribute their best and to avail the opportunities for improvement and growth. We are an equal opportunity employer and promote gender diversity, self development and innovation.
• We provide employees with tools, techniques and training to master their current jobs, broaden their skills and advance their career goals.
NURTURING
GROWTH
EMBRACING
SUSTAINABILITY
We aim to be the industry leader and a sustainable contributor to the nation's agricultural sector.
We aspire to continuously improve by achieving and exceeding global standards for product safety, quality, HSE, manufacturing and management excellence.
We continue to pursue a global reach by leveraging and maximizing our fertilizer / business potential. The Company aims to establish strategic alliance and partnerships with global technology providers in order to bring innovation and excellence in all our processes.
Our strategy revolves around the potential of our employees who are critical to our long term growth and success. Our Company provides the employees an opportunity to build their skills and professional capabilities while enjoying their work place. Critical to our strategy are also our technological resources and the image of our brand - Sarsabz.
07
MANAGEMENT'S OBJECTIVES & STRATEGIES FOR MEETING THOSE OBJECTIVES
Sr. No. | Management Objectives | Strategies / KPIs to meet objectives |
1 | Aspire to be the market leader in fertilizer business | Annual market share increases above main competitors |
2 | Efficient deployment of resources | Positive cash flow from operations year on year |
3 | Investment in human resources and their capacities | Low turnover of high potential employees Providing career opportunities to talented professionals in an organized and transparent manner |
4 | Taking Global Initiatives | Think globally when evaluating business expansion |
5 | Operational excellence for optimum plant performance | Develop a Risk Management Strategy and ensure continuous improvement in business processes |
6 | Focus on enhancing sales | Through market share enhancement and geographical diversification while nurturing our relationship with existing customers and educating farmers on the use of Urea, NP, CAN, through use of state of the art technology |
7 | Make new in-roads in distribution and create new businesses and channels | At least one next generation solution to distribution and channel management. Leverage technology. |
8 | Synergize investment and capacities | Excel in centralized strategy development and leverage technical, supply chain and other administrative functions. |
9 | Augment profitability with cost effectiveness and lean business operations | Continuous improvement of Shared Services operations and consider profit center concepts for certain functions |
10 | Effective financial controls for swift decision making at all levels | Financial indicators and KPI driven timelines to be monitored for continuous improvement |
11 | To be a responsible business concern, through CSR and sustainability initiatives | Investments to be focused on maximum impact on our communities. Monitor impact on regular basis. |
Significant Changes in Objectives and Strategies
Fatima's long term business objectives and the strategies to meet those objectives are carefully developed and no major changes have occurred during the year to compel the Company to alter its approach to achieve these objectives.
Relationship between Entity's Results and Management's Objectives
Performance of the Company is the realization of management's goals and objectives, which are strategically developed to increase the wealth of stakeholders. The said results are evaluated quarterly against the respective division's strategic objectives to confirm achievement.
NATURE OF BUSINESS
The principle activity of the Company is manufacturing, production, buying, selling, importing and exporting of fertilizers and chemicals. It is capable of producing two intermediary products, i.e. Ammonia and Nitric Acid and three final products which are Urea, Calcium Ammonium Nitrate (CAN) and Nitro Phosphate (NP). Fatima plays a significant role in nourishing soils and enriching lives through its diverse fertilizer portfolio.
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Fatima Fertilizer Company Limited
Annual Report 2024
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