Cost Accounting Fauji Fertilizer

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  • Topic: Fertilizer, Urea, Inventory
  • Pages : 11 (2305 words )
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  • Published : July 1, 2011
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ACTIVITY BASED COSTING IN FAUJI FERTILIZER|
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SUBMITTED TO:
MAM NADIA IBN E HASSAN
SUBMITTED BY:
MUHAMMAD BIN IFTIKHAR
FAHAD UMER NAJEEB

INTRODUCTION TO FFBL
In 1986, the demand for urea in the country exceeded the domestic production and the country started importing urea. In order to ease pressure on the government Fauji Fertilizer Company Ltd (FFC) once again came forward and set up another urea plant at Goth Machhi to meet the growing demand. The new plant commenced commercial production in March 1993. In November 1993, FFC together with Fauji Foundation sponsored the establishment of a Urea and DAP complex at port Qasim, Karachi in partnership with Jordan Phosphate mines Company Ltd (JPMC) of Jordan. The new company, FFC-Jordan Fertilizers Company Limited (FJFC) was founded as a public limited company and was listed on the stock exchanges of Pakistan, JPMC withdrew its equity in 2003 and the name of FJFC was changed to Fauji Fertilizer Bin Qasim Limited (FFBL). Since the commencement of its commercial production, FFC has been marketing the entire production of FFBL under its own brand name “SONA”. Fauji Fertilizer Bin Qasim Limited engages in the manufacture, purchase, and marketing of fertilizers in Pakistan. Its products include DAP, ammonia, and granular urea. The company is headquartered in Rawalpindi, Pakistan. Fauji Fertilizer Bin Qasim Limited operates as a subsidiary of Fauji Fertilizer Co. Ltd. The company turned out to be profitable after 3 years i.e, by 2004 and declared 'maiden dividend' in 2004. Profitability has constantly been on the rise since then and 2007 has been the most profitable year of the company. One of the milestones in the success of FFBL is its accreditation of ISO certification, which was achieved in Mar 2006 for both the Head Office and Plantsite. FFBL is divided into 3 zones; Lahore zone, Karachi zone and Multan zone, 14 sales region through the country with 65 sales districts. Each sales district has 2 warehouses which makes up to 150 warehouses throughout the country. Regular reporting is done regarding the pricing, latest developments, infrastructure and policies of competitors is done.

PRODUCTS
FFBL consists of two products, Granular Urea of Sona Urea and Di Ammonium Phosphate (Sona DAP). They are the market leaders in sona DAP and the only manufacturers aswell. Other competitors import DAP. 1. Granular Urea (Sona Urea)

With its state of the art Fertilizer Plant, Fauji Fertilizer Bin Qasim Limited is the only Granular Urea manufacturer in Pakistan. Urea can be used anytime and is basically responsible for making the plant green. If a plant de-colors, urea can be used and within 3,4 days visible improvement is seen. Description:

* Urea is a synthetic organic compound containing 46 % nitrogen in amide form * Available in the form of white solid prills. free flowing for easy application * Being hygroscopic, urea is packed in moisture proof high density Polythene bags Features and Benefits:

Our product, granular urea (Sona Urea) has the cutting edge over the conventional Prilled urea with the following superior qualities: * Cheapest among all nitrogenous fertilizers based on per unit cost of nutrient * Less acidifying than many other nitrogenous fertilizers hence most suited for high pH soils * High concentration of nutrients makes packing, storage and transport cost cheaper * Larger granular size

* Greater granules strength
* Minimum fines, dust and powder
* Minimum losses in the air
* Least caking property * Easy to spread in the fields...
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