COVER STORY
Our journey, deeply rooted in the essentials of life-nourishing the earth, empowering communities financially, and embracing renewable resources-embodies a blend of tradition and innovation, gearing up for sustainability. We chart a course deeply rooted in environmental stewardship, empowering stakeholders, and the strategic utilization of renewable resources. Diversifying our footprint across key sectors- renewable energy, banking, cement, and food production-our focus lies in channelling the financial resources towards securing a robust, uninterrupted supply chain of essential raw materials, in line with our overarching business vision.
Looking ahead, we continue venturing the transformative journey-affirming our commitment toward a future-where sustainability becomes the cornerstone of our existence.
VISION
To be an inspiring, distinguished and globally diversified enterprise with a hallmark of excellence, trust and innovation
MISSION
Taking a lead role in the agricultural & industrial development by delivering premium products and services while maintaining a high level of social and environmental responsibility for all the stakeholders, thus providing a dynamic and challenging environment for our employees
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CONTENTS
01
02
03
04
05
06
07
Company Overview | 06-45 |
General information about the | |
Company and its operations | |
Directors' Report | 46-141 |
Review of the Company's performance by | |
the Board of Directors | |
Sustainability Report | 142-229 |
Assessment of the Company's value creation ability and | |
contribution towards Sustainable Development Goals | |
Financial Statements | 230-311 |
Financial Statements of the Company along with Reports by | |
the Audit Committee and Independent External Auditors | |
Consolidated Financial Statements | 312-433 |
Consolidated Financial Statements of the FFC Group along | |
with Chairman's Review on the Group's performance | |
Shareholders' Information | 434-458 |
General information about the Company | |
and its operations |
ٹروپر زرٹکیرئاڈ | 459-491 |
ہیزجت اک زرٹکیرئاڈ رپ یگدرکراک یک پورگ روا ینپمک |
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ANNUAL INTEGRATED REPORT 2023
Vision
Mission
Leading Through
Our Purpose
Values
Practices
Value for/in our business model
Our vision, mission, codes and values are based on the principles of value creation and preservation. These principles are rooted in our business model and align every one within the organization. We apply integrated thinking to identify matters that could influence our ability to create value. Our value creating business model demonstrates how we make decisions, apply our resources/capitals, deliver performance and add stakeholder's value.
Our sustainability report also presents information on environmental, social, governance and economic performance, while reporting the impacts on matters material to FFC and stakeholders.
We use the following icons to express value creation, preservation and erosion in our Report.
Value creation
Value preservation
Value erosion
Integrated
Thinking and
Delivery on our
Purpose
Board and its
subcommittees
Governance,
Strategy & Future
Outlook
Management,
KPIs & Targets
Risk Governance
Enterprise Risk
Management
Mitigation of
Risks
Resource Allocation
Capitals
Value Creating
Business Model
Identify & Prioritize
Materiality
Assessment
Validate & Approve
Governance, Strategy and Future Outlook
Board of Directors of FFC has established well-organized governance system through which sustainability and prosperity of organization is being ensured. The system operates on the principles of transparency, accountability and good governance, by implementing relevant strategies and employing efficient and adequate resources, apprehending our vision, mission and values (VMVs), whereby safeguarding the interest of the stakeholders.
Our business strategy defines our short, medium and long-term strategic objectives whereas future outlook defined in each capital and forward looking statements explain about future that we envisage while elaborating our measurement achievements and target outcomes. We also explain the expected condition and performance, status of projects disclosed last year and sources of information and assumptions used for projections. As a leading organization always focusing on environment, governance and social matters, we have been endorsing/partnering up with our apex regulator (SECP) towards working on the ESG Regulatory Road map. Details of our ESG journey can be read on page 108.
Enterprise Risk Management
FFC has an independent risk governance structure comprising of senior management of the Company, headed by the MD&CEO. We identify risks and opportunities posed by our operating environment, assess the significance, review industry-specific issues. This report focuses on risks, opportunities and challenges that have a material impact on our capitals. Our risk management and internal control processes are discussed
in detail on page 86. FFC is also embarking on ESG risk management measures in line with the proposals and guidelines by relevant forums.
Our Capitals
Our business deliver a culture of empowerment and accountability by employing resources/capitals, focusing on ESG through standardized, scalable and efficient way of doing business. These capitals have been explained in detail in Directors Report and Sustainability Report.
Financial | Manufactured | Intellectual / | Human | Social & | Natural |
Capital | Capital | Organizational | Capital | Relationship | Capital |
Capital | Capital |
Materiality Assessment
FFC materiality assessment focuses on matters (issues, risks, opportunities) that have material impact on our capitals and ability to pursue sustainable business. This enables us to create long-term shared value in a rapidly evolving landscape, and their impacts on the economy, environment, and people. The assessment process has been segregated in four phases i.e. identification, prioritization, validation and approval. Materiality assessment has been explained on page 154.
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Integrated
Reporting
Process
Reporting
Frameworks
Reporting
Process
Reporting
Standards
Legal / Regulatory
Legal /
Regulatory
- Reporting Frameworks
Compliance & Control
Management
Sign-off
Approving the
Integrated
Report
Board
Approval
Reviews / Audits
Assurance &
Reviews
Sign off
Reporting Process
The report is prepared by inputs and information received from cross functional process owners across the Company and its Subsidiaries. This information is assessed based on various reporting criteria and guidelines. Materiality of information is taken into account while reporting the financial and non-financial information. Financial reviews are carried out by extracting information from the audited financial statements. Sustainability report is also prepared by a cross- functional team comprising of reporting representatives, subject matter specialists and CSR team, which produces the content of the report under the oversight from the CSR committee. For any feedback related to sustainability report please connect with our sustainability team at csr@ffc.com.pk
Monetary values are presented in Pakistani Rupee being the functional currency
Adherence with Legal / Regulatory and Reporting Frameworks
FFC complies with legal/regulatory frameworks and polices as defined in our capitals, whereas following key legal and regulatory frameworks, are also mentioned below
- Companies Act and related pronouncements
- Applicable International Financial Reporting Standards
- Code of Corporate Governance
-
Integrated Framework & BCR reporting criteria of
ICAP/ICMAP - Global Reporting Initiative (GRI) Standards 2021
-
Chemical Industry Standard of the Sustainability
Accounting Standard Board (SASB) - United Nations Global Compact (UNGC) "Ten Principles"
- PSX Reporting Criteria
- SDG reporting/ESG SECP Road Map
Integrity of The Report
The integrity of this report is ensured through a well-designed integrated reporting process, various reviews and approvals. Directors' Report and Financial Statements are reviewed
by the Audit Committee and approved by the Board of Directors. Annual Integrated Report 2023 has been prepared on the basis and guidelines of and BCR ICAP/ICMAP Framework. The Board has endorsed and authorized the release of their Directors Report on January 26, 2024.Independent External
Review and Assurances
- Statutory Auditors; A.F. Ferguson & Co - a member firm of Pricewaterhouse Coopers network
- Cost auditors; BDO Ebrahim & Co., Chartered Accountants
-
Compliance with IR Framework & ISAE 3000 (Revised);
Ferso ESG - AA1000 Licesed Assurance Provider and Nadeem Safdar & Co. Chartered Accountants - Pakistan Credit Rating Agency (PACRA)
- Various External Reviews/Evaluations and Audits as described in our Capitals mentioned in the Report.
Our Integrated
Report
Reporting Period
The report is prepared and published annually and covers the period January 01 to December 31, 2023. The report is published on March 05, 2024.
Data Compilation Methodologies
All financial data has been extracted from Audited Financial Statements (which are also part of this report). Data included in Capitals and Sustainability Report covers FFC's manufacturing plants, marketing offices/locations and head office.
There are no changes in the reporting period, scope, boundary, and data measurement methodologies. Previous years' figures have been regrouped/ rearranged wherever found necessary to conform to this year's classification. The online PDF version can be accessed at http://www.ffc.com.pk/ investors-relations/annual-reports/.
Operating Businesses
FFC, its subsidiaries and associated entities, operates in fertilizer, power, food, banking, cement and technical services business.
Financial and Non-Financial Reporting
The report includes financial and non-financial performance, risks and opportunities, and outcomes attributable to our activities and key stakeholders that significantly influence our value-creation ability. Details related to financial position and performance are presented in Financial Capital, whereas all non-financial information/ KPI are mentioned in other Capitals and Sustainability Report.
Targeted Readers
The report primarily addresses stakeholders needs and provide them with a holistic view of our value creation potential.
Compliance beyond Reporting Criterion
Refer to Corporate Governance Section (page 105) under 'Governance practices exceeding legal requirements' and 'Disclosures beyond BCR Criteria' for the compliances beyond reporting criteria.
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Ratti Gali Lake
Neelum Valley, Azad Kashmir, Pakistan Credits: Usman Miski
01
COMPANY
OVERVIEW
General information about the Company and its operations
Company Information | 08 |
Highlights 2023 | 09 |
Product Portfolio | 10 |
Geographical Presence | 12 |
Code of Conduct | 14 |
Core Values | 16 |
Policy Statement on Ethics and Business Practices | 17 |
Company Profile and Group Structure | 18 |
History of Major Events | 20 |
Organizational Chart | 22 |
Major Events During the Year | 23 |
Strategy and Resource Allocation | 24 |
Competitive Landscape and Market Positioning | 27 |
Profile of the Board | 28 |
Board Committees | 36 |
Management Committees | 44 |
SWOT Analysis | 45 |
COMPANY INFORMATION
Board of Directors
Mr Waqar Ahmed Malik, SI
Chairman
Mr Sarfaraz Ahmed Rehman
Managing Director & Chief Executive Officer
Dr Nadeem Inayat
Mr Saad Amanullah Khan
Ms Maryam Aziz
Syed Bakhtiyar Kazmi
Mr Shoaib Javed Hussain
Mr Jehangir Shah
Dr Ayesha Khan
Mr Yassir Ghiyati Ibn Ziyad
Mr Qamar Haris Manzoor
Mr Rashid Mahmood Langrial
Lt Gen Waheed Arshad, T.Bt, HI(M) (Retired)
Chief Financial
Officer
Syed Atif Ali
Tel No. +92-51-8456101
Fax No. +92-51-8459961
E-mail: atif_ali@ffc.com.pk
Company Secretary
Brig Zulfiqar Ali Haider, SI(M) (Retired) Tel No. +92-51-8453101
Fax No. +92-51-8459931E-mail: secretary@ffc.com.pk
Registered Office
156 - The Mall, Rawalpindi Cantt, Pakistan Website: www.ffc.com.pk
Tel No. +92-51-111-332-111+92-51-8450001
Fax No. +92-51-8459925E-mail: ffcrwp@ffc.com.pk
Plant Sites
Goth Machhi, Sadiqabad
(Distt: Rahim Yar Khan), Pakistan
Tel No. +92-68-5954550-64
Fax No. +92-68-5954510-11
Mirpur Mathelo
(Distt: Ghotki), Pakistan
Tel No. +92-723-661500-09
Fax No. +92-723-661462
Marketing Division
Lahore Trade Centre,
11 Shahrah-e-Aiwan-e-Tijarat,
Lahore, Pakistan
Tel No. +92-42-36369137-40 Fax No. +92-42-36366324
Karachi Office
B-35, KDA Scheme No. 1
Karachi, Pakistan
Tel No. +92-21-34390115-16
Fax No. +92-21-34390117 &
34390122
Auditors
A. F. Ferguson & Co.
Chartered Accountants
74 - East, Blue Area,
Jinnah Avenue, Islamabad
Tel No. +92-51-2273457-9,
2870045-85
Fax No. +92-51-2206473
Shares Registrar
CDC Share Registrar Services Limited
CDC House, 99 - B, Block - B
S.M.C.H.S., Main Shahra-e-Faisal
Karachi - 74400
Tel: +92-0800-23275
Fax: +92-21-34326053
Bankers
Conventional Banks
Allied Bank Limited
Askari Bank Limited
Bank Al Habib Limited
Bank Alfalah Limited
Deutsche Bank AG
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
Industrial and Commercial Bank of
China
JS Bank Limited
MCB Bank Limited
National Bank of Pakistan
SAMBA Bank Limited
Silk Bank Limited
Soneri Bank Limited
Standard Chartered Bank (Pakistan)
Limited
Summit Bank Limited
The Bank of Punjab
United Bank Limited
Zarai Taraqiati Bank Limited
Islamic Banks
Al Baraka Bank (Pakistan) Limited
Bank Islami Pakistan Limited
Bank Alfalah (Islamic)
Dubai Islamic Bank Pakistan Limited
MCB Islamic Bank Limited
Meezan Bank Limited
The Bank of Khyber
www.ffc.com.pk
08
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Fauji Fertilizer Company Limited published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 04:46:05 UTC.