Internship Report

Fauji Fertilizer Bin Qasim Limited

Supervisor: Dr. Ali Raza

Duration: 8th July – 16th August

Submitted by: Hunain Khan

BSBA-6(B)

04151613056

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 Acknowledgement

The whole praise is to almighty Allah, creator of this universe. Who made us the

super creature with great knowledge and who able me to accomplish this work, I feel

great pleasure in expressing my deepest appreciation and heartiest gratitude to the staff of

Fauji Fertilizer Bin Qasim Limited (FFBL) for their guidance and great help during the

internship period

I would specially like to thank the Finance department for their constant support

and guidance and for solving all my queries during the course of my internship. It was

because of their motivating and encouraging efforts that I have been able to explore the

practical world in a very professional manner and to understand different legal ordinance

beyond the requirement of my internship.

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 Executive Summary

This is the internship report based on six weeks internship that I had successfully

completed in Fauji Fertlizer Bin Qasim Limited (FFBL) under Finance department from

8th July, 2019 to 18th August, 2019. Being completely new to practical, corporate world

setting, every hour I spent at OGRA gave me experience.

In this internship report I have listed down about what FFBL mission is. All the

powers it has and the function it performs in order to enhance its stakeholder’s value.

Every single department of FFBL works together internally and with its other subsidiaries

in order to achieve its mission and vision.

This report also includes my personal experience and learning from my

supervisors in the duration of my internship through which I came to know what FFBL is

really about. It’s SWOT Analysis is also included and the recommendations for it so that

it can encounter their weaknesses and threats while achieving their opportunities and

maintaining their strengths.

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 List of Abbreviations

Abbreviation Explanation

CPEC China Pakistan Economic Corridor

DAP Di-Ammonia Phosphate

FFBL Fauji Fertilizer Bin Qasim Limited

FFCL Fauji Foundation Company Limited

FFL Fauji Foods Limited

FML Fauji Meat Limited

FPCL Fauji Power Company Limited

PSX Pakistan Stock Exchange

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 Table of Contents

Chapter 1 – Introduction .............................................................................................................. 1

1.1 Fauji Fertilizer Bin Qasim Limited ....................................................................................... 1

1.2 Products ................................................................................................................................. 2

1.2.1 Di-Ammonia Phosphate ............................................................................................. 2

1.2.2 Urea............................................................................................................................ 3

1.3 Mission and Vision ............................................................................................................... 3

1.4 Departments .......................................................................................................................... 3

1.5 Finance Department .............................................................................................................. 3

1.5.1 Levels in Finance Department .................................................................................. 4

1.5.2 Sections in Finance Department ............................................................................... 5

1.5.2.1 Payable Section ......................................................................................... 5

1.5.2.2 Treasury Section ....................................................................................... 8

1.5.2.3 Capital Budgeting and Planning Section ................................................ 11

1.5.2.4 Taxation Section ..................................................................................... 13

Chapter 2- Personal Learning and Working Experience ........................................................ 14

2.1 Week 1 ................................................................................................................................. 14

2.2 Week 2 ................................................................................................................................ 14

2.3 Week 3 ................................................................................................................................. 14

2.4 Week 4 ................................................................................................................................ 14

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 2.5 Week 5 ................................................................................................................................ 14

2.6 Week 6 ................................................................................................................................ 14

Chapter 3- SWOT Analysis ........................................................................................................ 14

3.1 Strengths ............................................................................................................................. 14

3.2 Weaknesses .......................................................................................................................... 15

3.3 Opportunities........................................................................................................................ 15

3.4 Threats.................................................................................................................................. 16

Chapter 4 - Conclusion and Recommendation ......................................................................... 17

4.1 Conclusion ........................................................................................................................... 17

4.2 Recommendation ................................................................................................................ 17

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 Chapter 1

Introduction

1.1 Fauji Fertilizer Bin Qasim Limited

Fauji Fertilizer bin Qasim Limited (FFBL) is involved in the manufacturing and

distribution of chemical fertilizers for the agriculture sector of Pakistan. FFBL was merged under

Corporations Ordinance 1984. It has two main products

i. Di-ammonium Phosphate (DAP)

ii. Granular Urea fertilizers

FFBL’s fertilizer manufacturing complex is located at Bin Qasim, Karachi whereas its

Head Office is situated at DHA Phase II, Islamabad. The company is also listed in Pakistan Stock

Exchange (PSX) with the trade symbol of the company as “FFBL”.

The major share-holders of FFBL are

1. Fauji Fertilizer Company (49.88%) ,and

2. Fauji Foundation (18.29%)

There are three main subsidiaries of Fauji Fertilizer Bin Qasim Limited. They are:

1. Fauji Power Company Limited (FPCL)

2. Fauji Meat Limited (FML)

3. Fauji Foods Limited (FFL)

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1.2 Products

The two main products produced by Fauji Fertilizer Bin Qasim Limited are:

1. Di-Ammonia Phosphate

2. Urea

1.2.1 Di-Ammonia Phosphate

Di-Ammonia Phosphate (DAP) is the most widely used phosphorus fertilizer in

the world and contains nutrient element nitrogen. It contributes up to 80% of the FFBL

total revenue annually even though it’s most sold in the winter season. The main reason

for its popularity is because of high nutrient content present in it.

Main advantage of DAP is that it is highly soluble which means that phosphate

and ammonia is easily available. Even in moisture areas it lets roots grow stronger and

deeper, even in acidic soils.

1.2.2 Urea

Urea is organic compound containing 46 % nitrogen in amide form. It is available

in white solid pills form. It is the most selling product which is sold throughout the year

but produces only 20% of total annual revenue. Urea is packed in high density Polythene

bags which are moisture proof.

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 It is mainly used to sustain the plants life and enriching the soil with various

nutrients.

1.3 Mission and Vision

The mission of Fauji Fertilizer Bin Qasim Limited that is “What it wants to

become?” is “To be committed to remain amongst the best companies by maintaining the

spirit of excellence through sustainable growth while ensuring best practices.”

Whereas its vision that is “What it wants to achieve?” is “To be the foremost premier

organization focused on quality and growth, leading to enhanced stakeholders value.”

1.4 Departments

The various departments in Fauji Fertilizer Bin Qasim Limited are:

1. Administration

2. Capital Budgeting

3. Finance

4. Human Resource

5. Information Technology

6. Internal Audit

7. Supply Chain

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1.5 Finance Department

The finance department of Fauji Fertilizer Bin Qasim Limited (FFBL) organize,

manage, audit, control, plan and distribute the finances internally and externally on behalf

of the organization.

Let’s discuss about finance department in detail.

1.5.1 Levels in Finance Department

CFO

SENIOR
MANAGER

MANAGER

UNIT SECTION DEPUTY

ASSISTANT SENIOR
MANAGER EXECUTIVE EXECUTIVE

ASSOCIATE MANAGEMENT
OFFICER ASSOCIATES

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1.5.2 Sections in Finance Department

There are total five sections in Fauji Fertilizer Bin Qasim Limited, finance

department. These sections are:

1. Payable Section

2. Treasury Section

3. Capital Budgeting and Planning Section

4. Taxation Section

5. Financial Reporting Section

1.5.2.1 Payables Section

The local payment department is responsible for handling employees’ payments

(e.g. petrol costs, TADA, medical bills, reimbursements etc.). The payroll of both

external and internal customers is dealt with in this section. The company performs these

tasks with the help of SAP software.

The local payment section made all the payment possible that relates with the

country transactions. This section made payment to vendor against the goods receipts and

acquiring/hiring services after deducting the Tax at specific Rate.

Activities of Local Payment Section

Following activities performed by the local payment section.

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 i. Documents receipts from plant site through mail as well as Hardcopy of the

documents.

ii. Receive and verify invoices and requisitions for goods and services.

iii. Data enters invoices for payment.

iv. Process backup reports after data entry.

v. Check the status regarding the invoices.

vi. Different signals shows and convey different meaning.

vii. If green signals show that mean the document ready for payment.

viii. Head office puts/update the status of that invoices.

ix. Cheques made by the Head office on vendors name.

x. Maintain updated vendors file and file number.

xi. Maintain a list of accounts payable.

xii. Record all cheques

xiii. Withholding tax deducted from vendor.

xiv. Finally intimate to the bankers to transfer the money in favor of the vendor

xv. If case is related to employee’s then transfer payment to the employee’s account

1.5.2.2 Treasury Section

The ‘Treasury and funds department’ is responsible to manage liquidity of a

business. They decide what to do with excess cash and where to invest it. Procurement of

funds is also one of the main responsibilities of this section.

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 It is responsible for managing the cash and fulfilling the need of the company

regarding cash.it is responsible for making investment if company has enough funds at

lower rates and earned higher rates.

The other main task that is performed by this section is to make the payments to

foreign vendors in foreign currency.

There are three types of foreign vendors

i. For stock

ii. For spare parts

iii. For services

There are three forms of payments to foreign vendors

i. Telegraphic transfer

ii. Letter of credit

iii. Cash against documents

The main function of this section is arrange funds for all series of payments and

invests fund in different banks and mutual funds. Whenever, organization needs funds,

the Treasury section has the responsibility to arrange funds from best possible source.

The main source of cash inflow is selling DAP and Urea and the outflow of cash is

payments for raw material, employee salaries, loan payments and mark up etc. FFBL earn

80% profit from DAP and 20% profit from Urea.

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Activities of Treasury Section

The following activities are performed in treasury sections:

i. Arrangement of funds

ii. Investments

iii. Build relationship with banks

iv. Exchange rate update

v. Income recording

vi. Working capital monitoring

vii. Funds transfer on daily basis

viii. Mark up payment

ix. Provide quick finance to the company

Main functions of Treasury Section

i. Financing

Treasury sections fulfill the requirements of funds for company operation and

expansion. The requirements of cash flow may be for short term or long term. Short term

financing used to meet the day to day activities and long term financing used to meet the

long term Project need or any kind of expansion.

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 ii. Investments

Investment means to invest surplus money that can generate the reasonable

returns. The Treasury Section invests the surplus funds in different banks and mutual

funds. Mutual fund is a company that brings together money from many people and

invests it in stocks, bonds or the assets. Mutual fund includes Stocks, Bonds, Currencies

and Market Securities.

1.5.2.3 Capital Budgeting and Planning Section

The ‘Budgeting and planning’ department is responsible for creating budget for

the company for the upcoming year. They also monitor the budget i.e. determining

whether or not the spending of the company is within budget. They are also responsible

for project planning i.e. which products to undertake and which subsidiaries should the

company invest in.

Budgeting and planning section basically compile the overall requirement of

budgets. The work perform by this section is Financial Forecasting, Project Feasibility

Analysis, Budget Monitoring and Management Analysis Reports.

Budgeting and Planning Activities

In FFBL, Budgeting and Planning performed different activities like

i. Budget

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 ii. Planning

Budget

Budget is divided into two categories, operational budget and capital budget.

Operational budget is referred to the “OPEX”. This budget is related to carrying out the

day to day activities of the company and keeps the business of the company running.

Capital budget referred to “CAPEX”. This budget relates to the assets like building,

equipment, plant, machinery and vehicles.

Budget input compared with current year Budget and current year actual for

analysis purpose.

i. Initial review with department

ii. Budget presented to management

Planning

Planning section evaluates new project/ opportunities. Different studies are

conducted to analyze the viability of the project including market study, technical study

and financial feasibility.

i. Planning section performed financial feasibility of the project.

ii. Long term projection made by planning team.

iii. Various management analysis reports are made in this section.

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1.5.2.4 Taxation

The payroll and taxation department is responsible to determine the amount of

estimated wage or salary for each employee. Moreover deduction of taxes on salaries (if

any) is also responsibility of this department. The taxes on sales and income of the

company are also calculated by this department.

Taxation and Payroll section verify the payroll made by the Human Capital Management

Division. Then check deduction, tax on the employee’s income at the prescribed rate and finally

write to the bank to transfer of money FFBL A/C to the employee’s account.

Activities of Taxation and Payroll Section

i. Monthly update GST files in FBR portal.

ii. Update Withholding Tax file of FBR portal.

iii. Withholding Tax on Suppliers.

iv. Withholding Tax on Employee’s Salaries.

v. Filling of Annuals is Withholding Tax statement.

vi. Calculation of the Depreciation and amortization of the fixed assets.

vii. Final Settlement of Ex-employee’s accounts.

viii. Payments of vehicle loan. House loans Advance and interest free loans.

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 Chapter 2

Personal Learning and Working Experience

During six weeks of internship in Fauji Fertilizer Bin Qasim Limited (FFBL), facing

many new people with different knowledge made me learned a lot in my internship. I was

allocated to the Finance department which further consisted of five sections.

My personal working and learning experience in these sections per week has been

given in detail.

2.1 Week 1

I was appointed in Payable section during the first week of internship.

8th July

On the first day at Fauji Fertilizer Bin Qasim Limited (FFBL), I reported to Sir

Omar Kamran who was the Unit Manager of the Finance Department. He briefed me

about the local purchasing done by the department to the vendors. I was appointed with

Sir Hammad Aqeel (Associate Officer) who told me that he looks after bags, thread and

fuel purchasing from various vendors.

All these invoices are parked into their Systems Applications (SAP) system and is

later sent towards cheque clearing for payment to vendors. Those payments that are more

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than Rs 10,000/- are forward to petty cash and cash is given on hand, whereas the more

than this amount is paid through cheques. And those payments exceeding Rs 1 million,

then these invoices are first sent to internal audit and later the cheques are processed.

9th July

The next day I was appointed with Ma’am Nazia (Associate Officer) who taught

me about the work done by her. The invoices that are reviewed by the HR department are

sent to Finance department and checked by her. These invoices are regarding the Medical

Treatment, Travelling Allowances and the Suppliers payment and are put into their SAP

system.

Ma’am gave me some of the TADA allowances that were to be paid to the

employees. In order to process further, attachments of billing is always necessary. All the

bills are required in order to park it into SAP system. Further Medical Treatment

Allowances were also checked along with Ma’am Nazia. Those invoices which lacked

the bills were kept aside and the employees were contacted to provide those bills in order

to give them cheques.

Later Ma’am showed me how general ledger works in SAP system and I was

given the task to rearrange various vouchers in ascending order according to their invoice

number.

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10th July

The vouchers of vendor payments which were rearranged yesterday were to be

checked from the excel sheet. Whether their invoice number, NTN number, amount of

bill payments and the sales tax applied on those payments were according to the vouchers

or not.

On asking Sir Amir Khalid (Associate Officer) that why on some companies the

sales tax isn’t calculated, then he told me that the Forces Institution are exempted from

the tax and those companies that have Exemption Certificate. This exemption certificate

is issued for a period of three months and the company isn’t liable to pay sales tax to the

government.

11th July

The next day I worked with Ma’am Wardah (Associate Officer) who told me

about the payments and cheques distributed by her. She overviewed the agreements made

by the contractors and incase of any damage the payments are cut down. Abacus

agreement was overviewed in which their staff damaged FFBL property. After viewing

the agreement, the amount was cut down from their payments.

Ma’am also showed me that she kept a record on Low Assets Value (LAV),

whose have crossed their useful life and their value is in between Rs 10,000 - 100,000. In

terms of payments by cheques, the cross cheques of a company goes directly to banks

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whereas the cheques to Account Payee is given in cash if the amount is less that Rs

10,000.

12th July

Sir Aamir Khalid appointed me and two other internees to check the Tax Challans

of every month of individuals and companies. All these companies tax challans were to

be separated from other and to be saved as a document under the name of that company.

These tax challans were later on sent to the company’s email by the other internees.

2.2 Week 2

I was appointed in Treasury section on the second week of internship.

15th July

In the treasury section Ma’am Maverah (Treasury Officer) briefed about the

operations being done in their department. All the financial investments with excess cash

and the cash flows are managed. Of how they pursue banks in order to borrow loans for

their daily operations being done in the plant.

The two major products produced by FFBL are

i. Urea

ii. Di-Ammonium Phosphate (DAP)

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 Urea is sold overall the year and produces only 20% of the total revenue per year,

whereas 80% revenue is generated by DAP which is sold only in the winter season. For

this reason FFBL lacks in generating funds throughout the year and excess of cash is

generated in the winter season. All the debts are paid by the end of their year.

Due to the amount of funds needed by the plant for daily operations, FFBL

doesn’t approach for stocks due to political instability residing in the country. FFBL

pursues for mutual funds in banks, in order to get a higher rate of return. Apart from all

this FFBL has opened two accounts in Askari Bank, they are

i. Savings Account

ii. Fixed Term Deposit

Ma’am Maverah appointed us with Sir Aamir Raza (Associate Officer) who

parked Transfer of Funds from their Askari Bank Ltd (ABL) to Al Habib Bank Ltd and

United Bank Ltd (UBL).

16th July

Sir Aamir Raza told us why FFBL seeks for mutual funds rather than commodity

financing, because FFBL can’t hand over Urea and DAP products over to banks in order

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to take loans. All the short term loans taken by FFBL are paid back on quarterly basis of

15th of the quarter month.

Sir Aamir also told that all the money transfer through the bank channel is done

by Real Time Gross Settlement (RTGS) in which money isn’t subject to any waiting

periods and the money is transferred in real time.

17th July

Sir Aamir gave a “Short Term Facility Advising Letter” which holds a complete

agreement between FFBL and the Banks from which they are pursuing loan from. All the

terms and conditions are mentioned in this agreement, including the

 Credit amount taken by FFBL

 Purpose for which this amount is required

 Security against this credit facility

 Repayment method (quarterly, monthly etc.)

 Markup rate

Later on, Sir told about how the insurance of their assets is divided into various

companies. All the plants, equipment’s and other assets of FFBL are insured by a total of

10 companies in which the total value of assets are split up into these companies.

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18th July

Sir Aamir Raza gave Askari Bank Account Statement for the month of June and

said to analyze it. Later on he handed over their General/Ledger entries Statement and

gave the task to reconcile the entries. Those entries that don’t match with the bank

statement and FFBL’s own G/L statement is noted down and later checked.

All the debit side entries which are missing are basically payments to vendors,

employees and others for which the bank has either not issued them cash or their cheques

were bounced or any other reason. All of the company’s cheques become stale after a

period of six months and payment can’t be processed.

Later sir gave two more bank statements of Habib Bank Ltd and Samba Bank to

reconcile those statements.

19th July

On 19th July Ma’am Maverah called for an assessment in order to evaluate the

experience gained in the Treasury Department. Ma’am gave a brief overview of Funds

Status Report in which the FFBL total cash available at hand is displayed. This report

shows the amount of cash borrowed from banks as short term loans and not long term (as

they are for investment purposes), all these short term loans interest rate is also given for

every individual bank along with the time period in which it has to be repaid.

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2.3 Week 3

I was appointed in Capital Budgeting and Planning section on the third week of

internship.

22nd July

I was told to report to Ma’am Anum (Senior Executive) of Capital Budgeting and

Planning section. She briefed about the tasks being performed within the section. From

the past trends, the future projections are made and according to that budgets are

allocated. All these projections are made while keeping in mind the macroeconomic

variables (inflation, GDP etc).

Two main budget made within the FFBL were

1. CAPEX (Capital budget)

2. OPEX (Operational budget)

That is the amount of budget required in the capital side (investments etc) and the

daily operations in the plant or head office.

Ma’am Anum gave us the Annual Report of 2017-16 and told to overview the

Directors Review and the financial statements.

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23rd July

Ma’am Anum was on leave for the day due to which I continued to overview the

Annual Report of 2017-16.

24th July

(Leave)

25th July

Ma’am Anum asked about what was studied in the Director’s Review, Corporate

Social Responsibility (CSR), Global Trends and the Financial Statements.

Further she gave the task to calculate the past five year’s ratio, trend, common

size and industrial analysis. This task was carried out for rest of the day.

26th July

Rest of the analysis which weren’t carried out was carried today. Later a

conference meeting was held for all the internees in Fauji Fertilizer Bin Qasim Limited

(FFBL) with the Head of Protocol Manager. All the results of the ratios were checked

from the Annual Report and shown to Ma’am.

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2.4 Week 4

I was appointed in Tax and Payable section on the fourth week of internship.

29th July

Sir Nazzar Hussain (Section Manager) of Tax section briefed about the various

functions performed by their department. All the vouchers of Payable section are looked

by the respective office members that whether the amount of tax is correct, the rate and

the status of filer and non-filer is also checked by the department. After a brief interview

Sir appointed me to Mr. Adnan (Management Trainee) who showed how the entries are

parked into Internal Revenue Services (IRIS).

All the withholding tax and income tax return are parked into their system and

uploaded. Sir Adnan taught how these entries are entered from their excel file.

30th July

Sir Adnan gave the task of entering vouchers tax into IRIS system. The following

details are to be entered of a company or individual entity:

 Invoice number/ Registration number

 Name of Vendor

 Transaction Date

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  FBR Code

 Total Amount

 Deductible Amount

 Exemption code (if any)

This activity was carried out for the whole day.

31st July

On the beginning of the day, while I was sitting with Sir Adnan; Sir Amir Khalid

of Payable section came and changed my section to Payable Department. Over there Sir

gave me different invoices which were to be checked from excel sheet. All the tax rate

and amounts were to be checked according to the NTN number.

1st August

Sir Amir assigned an excel sheet in which he asked to check the NTN numbers of

all the tax payers for the month of June. All the tax amount was to be checked and

reported back to sir by the end of the day.

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2nd August

The previous day work was not able to finish so the work was completed and the

errors were discussed with Sir Amir. These problems were checked through the Invoices

and mistakes were corrected with Sir Amir.

2.5 Week 5

I was appointed in Payable and Tax section on the fifth week of internship.

5th August

Sir Amir Khalid gave the task of splitting the sheet from the main excel file into

two separate files, named as

i. Rent

ii. Advertising

Later on in these files more entries of vendors were added in which their data was

also entered including,

 Invoice number

 NTN/ CNIC number

 Taxpayer Name

 Taxpayer Address

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 Total Amount

 Tax Amount

 Tax rate

 Date

6th August

On 6th August Sir Arslan Babar told me to go back to the Tax Section and

complete my duration there. So Sir Adnan showed me the tax data entries which were

being entered for the month of July into excel file.

7th August

Sir Adnan gave me to reconcile the data tax from the payment section sheet and

their own data for the month on July so that it can be uploaded into the IRIS system

before 15th August which is the last date to submit the data.

After reconciliation Sir Adnan uploaded the excel file according to the IRIS

template into the IRIS system.

8th August

(Leave)

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9th August

It was the last day in Tax Section for which Sir Nazzar Hussain (Section

Manager) called in order to take a report on the learning activities in the tax section. He

told to compile a report and give it to him of all the experience gained. This report was

submitted the same day to Sir Nazzar Hussain.

2.6 Week 6

It was the last week of the internship period

12th – 15th August

(Eid Holidays)

16th August

It was the last day of the internship period for which Sir Arslan Babar told me to

get clearance from the departments and submit a report covering all the experience

gained in every department. All the clearance was made from administrative, security and

cafeteria department and submitted to the human resource department. The report was to

be submitted later at the time of receiving the certificate.

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 Chapter 3

SWOT Analysis

SWOT analysis is a business examination improvement that affirms that reasons

for an arrangement are obviously energetic and that all perspectives identified with the

arrangement are legitimately perceived. SWOT Analysis is the most significant

instrument in administration.

Four components are distinguished around there;

1. Strengths

2. Weaknesses

3. Opportunities

4. Threats

Strengths and Weaknesses are internal components though Opportunities and

Threats are outside variables. Both internal and external components are measured while

doing SWOT Analysis, as they both can influence the achievement of an arrangement or

task. The accompanying is a brief outline of SWOT Analysis parts

3.1 Strengths

The major strength of Fauji Fertilizer Bin Qasim Limited (FFBL) is that it’s the

only Di-Ammonia Phosphate and Urea manufacturer in Pakistan. And from past years it

has developed a brand image by maintaining the quality of its products. Due to which it

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has been able to attract and stay loyal to its customers and hence it became strength of the

company.

Most of the raw materials is imported and they have offshore entities which

secure the supply of raw materials. Their employees are dedicated in achieving the

organization goals.

3.2 Weaknesses

FFBL only relies on the sale of two major products, urea and DAP whereas its

subsidiaries haven’t been able to sustain themselves and are suffering big losses from

past few years. There is also a limited distribution of their products across the region, this

incurs sales issues. The company also had been struggling with the value of its stocks in

the market.

The company is running on credit term basis and is able to repay their short term

debts after the winter season when DAP is sold. Also due to a large international

induction of raw material sometimes make it difficult to control some of the operations

and may cause delays. FFBL also depends on the single source of gas supply and on the

costly logistics in the absence of railway network.

3.3 Opportunities

FFBL should look into growing more fertilizer as the demand in the country

increases time to time and not only relying on the sale of the two products only, rather

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diverse their investment opportunities when there is surplus amount of cash after winter

season. FFBL should also look into increase their product line.

The biggest opportunity FFBL should look into is to export their products and it

will be successful because of its goodwill. These export opportunities can be done by

China Pakistan Economic Corridor (CPEC).

In future the population will grow so FFBL should plan accordingly to increase

the production of fertilizer in order to secure food for a growing population. FFBL should

plan accordingly by looking at the trends and forecasting the future.

3.4 Threats

Threats are the external factors in which FFBL have little or no control over them.

These factors can be political, social and environmental aspects of a business. As the raw

material is imported from other countries so the political stability is required. If there is

political instability within the country, the value of Rupees will go down in the market

leading to expensive raw materials. Also any kind on unexpected tax, duties etc imposed

by the government will also result as a threat for FFBL survival.

As DAP is a premium product of FFBL and a new entrant comes into the market

and produces the same quality product at a cheaper price will be a major threat for the

organization.

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 Chapter 04

Conclusion and Recommendations

4.1 Conclusion

Fauji Fertilizer Bin Qasim Limited is the only manufacturer of chemical fertilizers

in Pakistan. This makes the company in a very strong position to gain revenues and

compete in the market. FFBL is totally dependent upon the sale of DAP and Urea within

Pakistan.

The environment of FFBL is pleasant and all its keen employees are working

together side by side to accomplish the company’s goals and objectives.

4.2 Recommendations

FFBL is a mixture of Army and Civilian Personals as FFBL is under Fauji

Foundation Company Limited (FFCL) so in the hiring process there’s a lot of favoritism.

So there may be a case when the right person for the job is neglected against a wrong

person hired for the job. Apart from that there’s no rotation of job task for the employees

which is necessary for the organization to keep their employees dedicated and active

during their job tenure.

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 Product line of the company should be increased as the company only relies on its

two products and is under debt till there are more sales of DAP. And when there is excess

of cash then FFBL Capital Budgeting and Planning section should look for investment

opportunities. This will result in increase of their revenues.

FFBL should look for exporting their premium DAP product to countries that

require it. As DAP is widely used for plants at winter season then it’ll be more profitable

for the business and revenue will be generated resulting in more investment

opportunities.

By relying on a single source of income and not looking for more investment

opportunities is a major drawback of any organization and will always be looked as a

weakness and threat by their competitors/new entrants.

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Organogram

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References

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