Company Information

DIRECTORS
Lt Gen Hamid Rab Nawaz, HI(M), (Retired)
Chairman

Lt Gen Anis Ahmed Abbasi, HI(M), (Retired)

Chief Executive & Managing Director

Lt Gen Malik Arif Hayat, HI(M), (Retired)

Mr Qaiser Javed

Brig Rahat Khan, SI(M), (Retired)

Dr Nadeem Inayat

Brig Liaqat Ali, TI(M), (Retired)

Brig Jawaid Rashid Dar, SI(M), (Retired)

Brig Parvez Sarwar Khan, SI(M), (Retired)

Mr Naved A. Khan

Mr Nasier A. Sheikh

Mr Rashid Bajwa

SECRETARY
Brig Javed Nasir Khan, SI(M), (Retired)

CFO
Syed Aamir Ahsan

REGISTERED OFFICE PLANTSITE

73 Harley Street, Rawalpindi, Pakistan Bin Qasim, Karachi, Pakistan
Tel: (051) 9272196-97, 9270923
Fax: (051) 9272198-9
E-mail: secretary@ffbl.com
Website: http://www.ffbl.com

LEGAL ADVISORS AUDITORS SHARES REGISTRAR

Orr Dignam & Co KPMG Taseer Hadi & Co Corplink (Pvt) Limited
Advocates, Chartered Accountants Wings Arcade, 1-K, Commercial,
3-A, Street 32, 6th Floor, State Life Building, Model Town, Lahore.
Sector F-8/1, Islamabad. Jinnah Avenue, Islamabad. Tel: (042) 35839182, 35887262
Fax: (042) 35869037

Fauji Fertilizer Bin Qasim Limited 1

 Directors’ Review
For the Nine Months Period Ended 30 September 2010
Operational Highlights
The Board of Directors is pleased to present a brief overview of the operational and financial performance of
the Company for the nine months period ended 30 September 2010.

The overall performance of the plants remained satisfactory during the period. Production of DAP at 476
thousand tonnes was higher by 27% against the corresponding period, whereas Ammonia production at 338
thousand tonnes and Urea production at 400 thousand tonnes were less by 2% and 11% respectively, against
the corresponding period owing to the gas curtailment of fertilizer plants by Government of Pakistan (GOP).
Initially this curtailment was for a period of three months from May to July which, however, has further been
extended to 31 October 2010.

Marketing Highlights

Urea
The Urea sales of 4,166 thousand tonnes during January to September 2010 are 10% lower than 4,645
thousand tonnes sales during the same period of 2009. Heavy rains in August followed by unprecedented
floods throughout the country resulted in very low sales in August & September which resulted in Urea
inventory of 809 thousand tonnes at end September compared with 208 thousand tonnes last year.

During the period July to September 2010 Urea market remained oversupplied. Throughout this period
GOP also continued its policy of selling imported Urea through National Fertilizer Marketing Limited and
Urea imports of 886 thousand tonnes were made in this period which were high in excess of the domestic
requirement.

The Urea opening inventory of 238 thousand tonnes at the start of 2010 was 70% higher than 140 thousand
tonnes opening inventory of 2009. During January to September 2010 Urea production is at 3,841 thousand
tonnes, which is 3% higher as compared to 3,739 thousand tonnes production during the same period of
2009. Higher Urea production is mainly due to startup of Fatima Fertilizer Plant. Excluding Fatima Fertilizer,
production during this period was lower by 3% as compared to the same period of last year because of gas
curtailment to the fertilizer plants.

DAP
Industry DAP market continuously declined during 2010 after a very healthy offtake during the year 2009. The
DAP sales of 665 thousand tonnes by the Industry during January to September 2010 registered a decline of
42% over 1,147 thousand tonnes sales during the corresponding period. DAP offtake of 246 thousand tonnes
during July to September is 46% lower as compared to 641 thousand tonnes sales during the same quarter of
2009. Domestic DAP prices went up by 43% from Rs. 1,760/- per bag ex-Karachi in July 2009 to Rs. 2,510/-
per bag ex-Karachi at the end of September 2010 and this had a negative impact on DAP use by the farmers.
However, the domestic DAP sales picked up during the month of September due to the approaching DAP
application time, rising trend in the international market and likely imposition of ‘Reformed GST’.

DAP inventory of 74 thousand tonnes at the beginning of the year 2010 was 78% lower than the 339 thousand
tonnes opening inventory of 2009. DAP production during the nine months period was 476 thousand tonnes
which is 27% higher than 376 thousand tonnes production of the corresponding period. DAP imports were
545 thousand tonnes during the period against 589 thousand tonnes imports of the same period last year. As
a result DAP inventory at the end of September 2010 stands at 422 thousand tonnes which is 167% higher
as compared to 158 thousand tonnes closing inventory of September 2009.

2 Fauji Fertilizer Bin Qasim Limited

FFBL Sales Performance
FFBL Sona Urea (G) sales during January to September 2010 were 373 thousand tonnes showing an
achievement of 88% against the target. These sales were 15% lower as compared to the sales of 441 thousand
tonnes for the same period of 2009. Sona DAP sales during January to September 2010 were 320 thousand
tonnes showing an achievement of 114% against the target. These sales were 40% lower as compared to 537
thousand tonnes sales of the same period of 2009.

During January to September 2010 FFBL share in Urea and DAP market is estimated at 8.9% and 48.1%
respectively.

Financial Highlights
Company’s financial results have shown a marked improvement during the nine month period of 2010 as
compared to the corresponding period with gross profit of Rs 6.7 billion at 30 September 2010. Further,
owing to better liquidity position, the Company resorted to less utilization of working capital lines bringing 39%
decline in Company’s finance cost during the period by Rs 468 million i.e. Rs 720 million at 30 September 2010
against Rs 1,188 million in the corresponding period. Similarly, due to better treasury management on available
funds, other income surged substantially to Rs 821 million at 30 September 2010 against Rs 13 million in the
corresponding period. This mainly comprises income on bank deposits and mutual funds amounting to Rs 637
million in conjunction with share of profit of PMP amounting Rs 158 million for the period October 2009 – June
2010.

Net profit after tax, as a result of the above stood at Rs 2,931 million at 30 September 2010, higher by 62%
against corresponding period profit of Rs 1,805 million. Resultantly, Company achieved earnings per share
(EPS) of Rs 3.14 for nine months period at 30 September 2010 against an EPS of Rs 1.93 in the corresponding
period.

Pakistan Maroc Phosphore, SA (PMP)

The overall plant performance remained satisfactory during the period under review. Improved international
selling price of phosphoric acid, stable phos rock price and sustained plant operations remained the main
factors to keep PMP in profits during nine months period from October 2009 to June 2010. The management
expects PMP to close year 2010 in positive, provided the above factors remain same for second half of year
2010.

Future Outlook
Lower than expected off-takes especially in the third quarter due to unprecedented floods throughout the country
has resulted in the high inventory situation, in particular to Urea, at September end. Further, the continuous
increase in DAP prices internationally, may result in increase in price of DAP in the country, in coming days.
The consequence of the above factors can also be seen as lower than expected off-takes in the fourth quarter
as well. In addition, the government also needs to address the issue of ongoing gas curtailment for fertilizer
companies by adhering to its commitment of restoring full gas supply to fertilizer plants at the earliest.

Since the Rabi season 2010-11 is about to start in the country, favorable weather and adequate financial
support by GOP to farmers both in form of providing subsidized inputs and adequate wheat support price shall
bring favorable impact both for the country and the industry.
For and on behalf of the Board

21 October 2010
Lt Gen Hamid Rab Nawaz, HI(M), (Retd)
Chairman

Fauji Fertilizer Bin Qasim Limited 3

 CONDENSED INTERIM BALANCE SHEET
AS AT SEPTEMBER 30, 2010 Un - audited Audited
September 30, December 31,
2010 2009
(Rupees ‘000)

EQUITY AND LIABILITIES

ISSUED SHARE CAPITAL AND RESERVES

Share capital 9,341,100 9,341,100
Capital reserve 228,350 228,350
Statutory reserve 6,380 6,380
Translation reserve 512,666 698,005
Accumulated (loss) / profit (465,658) 386,066
9,622,838 10,659,901

NON-CURRENT LIABILITIES
Long term financing 5 - 208,472
Long term murabaha 6 - 19,338
Long term loan 7 3,889,203 4,537,404
Deferred liabilities 8 3,888,196 4,052,814
7,777,399 8,818,028

CURRENT LIABILITIES
Trade and other payables 7,029,652 6,715,839
Mark - up accrued 189,713 110,324
Short term borrowings 9,598,834 7,730,450
Current portion of:
- Long term financing 5 312,708 416,944
- Long term murabaha 6 29,010 38,679
- Long term loan 7 648,201 648,201
Provision for income tax - net 341,591 1,086,816
18,149,709 16,747,253

35,549,946 36,225,182

CONTINGENCIES AND COMMITMENTS 9

The annexed notes 1 to 15 form an integral part of these condensed financial statements.

4 Fauji Fertilizer Bin Qasim Limited

 Un - audited Audited
September 30, December 31,
2010 2009
(Rupees ‘000)

NON-CURRENT ASSETS
Property, plant and equipment 10 14,916,597 15,576,899
Long term investments 11 2,100,783 2,127,972
Long term deposits 76,312 76,546
17,093,692 17,781,417

CURRENT ASSETS
Stores and spares 1,787,326 1,849,794
Stock in trade 7,045,688 1,227,013
Trade debts 4,614,098 476,728
Advances 133,469 111,353
Trade deposits and short term prepayments 35,838 4,807
Interest accrued 18,069 116,819
Other receivables 12,753 230,797
Sales tax refundable 119,487 119,487
Short term investments 750,000 4,658,936
Cash and bank balances 3,939,526 9,648,031
18,456,254 18,443,765

35,549,946 36,225,182

CHAIRMAN CHIEF EXECUTIVE DIRECTOR

Fauji Fertilizer Bin Qasim Limited 5

 CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2010

Quarter ended Nine months ended

September 30, September 30,
2010 2009 2010 2009
(Rupees ‘000)

Turnover 10,281,873 12,025,692 22,201,215 27,023,985

Cost of sales 12 (7,435,928) (8,590,558) (15,518,684) (20,639,469)
Gross profit 2,845,945 3,435,134 6,682,531 6,384,516
Selling and distribution expenses (640,290) (709,224) (1,730,844) (1,601,308)
Administrative expenses (215,838) (71,554) (424,045) (257,338)
1,989,817 2,654,356 4,527,642 4,525,870
Finance costs (388,118) (190,411) (719,963) (1,188,043)
Other operating expenses (132,933) (172,956) (321,181) (250,358)
1,468,766 2,290,989 3,486,498 3,087,469
Other operating income
Share of profit / (loss) of joint venture and associate-net 128,524 (283,314) 158,150 (599,585)
Others 199,274 200,058 662,875 612,467
327,798 (83,256) 821,025 12,882
Profit before taxation 1,796,564 2,207,733 4,307,523 3,100,351
Taxation
Current (637,831) (933,645) (1,554,618) (1,443,884)
Deferred 50,680 33,120 178,517 148,649
(587,151) (900,525) (1,376,101) (1,295,235)
Profit after taxation 1,209,413 1,307,208 2,931,422 1,805,116

Earnings per share - basic and diluted (Rupees) 1.29 1.40 3.14 1.93

The annexed notes 1 to 15 form an integral part of these condensed financial statements.

CHAIRMAN CHIEF EXECUTIVE DIRECTOR

6 Fauji Fertilizer Bin Qasim Limited

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2010

Quarter ended Nine months ended

September 30, September 30,
2010 2009 2010 2009
(Rupees ‘000)

Profit after tax 1,209,413 1,307,208 2,931,422 1,805,116

Other comprehensive income

Exchange difference on translating a joint venture (198,909) 125,345 (185,339) 31,508

Total comprehensive income 1,010,504 1,432,553 2,746,083 1,836,624

The annexed notes 1 to 15 form an integral part of these condensed financial statements.

CHAIRMAN CHIEF EXECUTIVE DIRECTOR

Fauji Fertilizer Bin Qasim Limited 7

 CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2010
2010 2009
Note (Rupees ‘000)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash (used in) / generated from operations 13 (4,086,681) 21,183,646
Income tax paid (2,299,843) (689,549)
Finance cost paid (583,357) (1,594,487)
Compensated absences paid (6,693) (7,799)
Payment to Workers’ (Profit) Participation Fund (53,337) (18,891)
Payment to Workers’ Welfare Fund (129,543) -
Net cash (used in) / generated from operating activities (7,159,454) 18,872,920

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditure (294,296) (188,013)
Proceeds from sale of property, plant and equipment 6,992 2,218
Long term deposits 234 -
Short term investments 666,013 (2,699,202)
Profit received on bank balances 328,721 418,106
Net cash generated from / (used in) investing activities 707,664 (2,466,891)

CASH FLOWS FROM FINANCING ACTIVITIES

Long term financing - repayment (312,708) (312,708)
Long term murabaha - repayment (29,008) (29,009)
Long term loan - repayment (648,201) -
Dividend paid (3,785,182) (2,439,906)
Net cash used in financing activities (4,775,099) (2,781,623)
Net (decrease) / increase in cash and cash equivalents (11,226,889) 13,624,406
Cash and cash equivalents at the beginning of the period 6,317,581 (10,315,558)
Cash and cash equivalents at the end of the period (4,909,308) 3,308,848

CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the cash flow statement
comprises the following balance sheet amounts:
- Cash and bank balances 3,939,526 5,419,994
- Short term highly liquid investments 750,000 250,000
- Short term borrowings (9,598,834) (2,361,146)
(4,909,308) 3,308,848

The annexed notes 1 to 15 form an integral part of these condensed financial statements.

CHAIRMAN CHIEF EXECUTIVE DIRECTOR

8 Fauji Fertilizer Bin Qasim Limited

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2010

Capital reserves
Share Capital Statutory Translation Accumulated
Total
capital reserve reserve reserve profit / (loss)
(Rupees ‘000)
Balance as at January 01, 2009 9,341,100 228,350 - 572,399 344,522 10,486,371
Total comprehensive income
Profit for the period after tax - - - - 1,805,116 1,805,116
Other comprehensive income - - - 31,508 - 31,508
Total other comprehensive income for the period - - - 31,508 - 31,508
Total comprehensive income for the period - - - 31,508 1,805,116 1,836,624

Transactions with owners, recorded directly in equity

Distributions to owners
Final dividend 2008 (Rs. 2.25 per ordinary share) - - - - (2,101,748) (2,101,748)
First interim dividend 2009 (Rs. 0.50 per ordinary share) - - - - (467,055) (467,055)
Total transactions with owners - - - - (2,568,803) (2,568,803)
Balance as at September 30, 2009 9,341,100 228,350 - 603,907 (419,165) 9,754,192

Balance as at January 01, 2010 9,341,100 228,350 6,380 698,005 386,066 10,659,901
Total comprehensive income
Profit for the period after tax - - - - 2,931,422 2,931,422
Other comprehensive income - - - (185,339) - (185,339)
Total other comprehensive income for the period - - - (185,339) - (185,339)
Total comprehensive income for the period - - - (185,339) 2,931,422 2,746,083

Transactions with owners, recorded directly in equity

Distributions to owners
Final dividend 2009 (Rs. 2.25 per ordinary share) - - - - (2,101,748) (2,101,748)
First interim dividend 2010 (Rs. 0.50 per ordinary share) - - - - (467,055) (467,055)
2nd interim dividend 2010 (Rs. 1.30 per ordinary share) - - - - (1,214,343) (1,214,343)
Total transactions with owners - - - - (3,783,146) (3,783,146)
Balance as at September 30, 2010 9,341,100 228,350 6,380 512,666 (465,658) 9,622,838



The annexed notes 1 to 15 form an integral part of these condensed financial statements.

CHAIRMAN CHIEF EXECUTIVE DIRECTOR

Fauji Fertilizer Bin Qasim Limited 9

 NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2010

1. Fauji Fertilizer Bin Qasim Limited (“the Company”) is a public limited company incorporated in
Pakistan under the Companies Ordinance,1984, and its shares are quoted on the Karachi, Lahore and
Islamabad stock exchanges in Pakistan. The registered office of the Company is situated at Rawalpindi,
Pakistan. The Company is domiciled in Rawalpindi, Pakistan. The principal objective of the Company
is manufacturing, purchasing and marketing of fertilizers including investment in fertilizer raw material
manufacturing operations. The Company commenced its commercial production effective January 1,
2000. The Company is a subsidiary of Fauji Fertilizer Company Limited (the holding company) with
shareholding of 50.88%.

2. These financial statements are un-audited and are being submitted to the shareholders in accordance
with the requirements of Section 245 of the Companies Ordinance, 1984. These condensed interim
financial statements of the Company for the nine months’ period ended September 30, 2010 have
been prepared in accordance with the requirements of the International Accounting Standard - 34:
“Interim Financial Reporting” and provisions and directives issued under the Companies Ordinance,
1984. In case where the requirements differ, the provisions of or directives issued under the Companies
Ordinance, 1984 have been followed. These condensed interim financial statements do not include
all the information required for full annual financial statements and should be read in conjunction with
the annual financial statements of the Company for the year ended December 31, 2009. Comparative
condensed interim balance sheet is extracted from annual audited financial statements for the year
ended December 31, 2009 where as comparative condensed interim profit and loss account, condensed
interim statement of comprehensive income, condensed interim statement of cash flow and condensed
interim statement of changes in equity are stated from unaudited condensed interim financial statements
for the nine months’ period ended September 30, 2009.

3. The accounting policies and the methods of computation adopted in preparation of this condensed
interim financial information are the same as those applied in preparation of financial statements for the
year ended December 31, 2009. The following standards, amendments and interpretations of approved
accounting standards became effective durining the period, however these do not have significant
impact on the Company’s financial statements:

-Revised IFRS 3 Business Combinations (effective 1 July 2009)

-Amended IAS 27 Consolidated and Separate Financial Statements (effective 1 July 2009)
-Amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (effective 1 July 2009)
-Amendments to IAS 39 Financial Instruments: Recognition and Measurement – Eligible
hedged Items (effective 1 July 2009)
-IFRIC – 17 Distributions of Non-cash Assets to Owners (effective 1 July 2009)
-Amendments to IFRS 2 Share-based payments and IFRS 3 Business Combinations (effective 1 July 2009)
-Amendments to IAS 38 Intangible Assets (effective 1 July 2009)
-Amendments to IFRIC 9 Reassessment of Embedded Derivatives (effective 1 July 2009)
-Amendments to IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective 1 July 2009)
-Amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (effective 1 January 2010)
-Amendments to IFRS 8 Operating Segments (effective 1 January 2010)
-Amendments to IAS 1 Presentation of Financial Statements (effective 1 January 2010)

10 Fauji Fertilizer Bin Qasim Limited

 -Amendments to IAS 7 Statement of Cash Flows (effective 1 January 2010)
-Amendments to IAS 17 Leases (effective 1 January 2010)
-Amendments to IAS 36 Impairment of Assets (effective 1 January 2010)
-Amendments to IAS 39 Financial Instruments (effective 1 January 2010)
-Amendments to IFRS 1 First-time Adoption of International Financial Reporting (effective 1 January 2010)
Standards -Additional Exemptions for First-time Adopters
-Amendments to IFRS 2 Share-based Payment – Group Cash-settled Share-based (effective 1 January 2010)
Payment Transactions
-Amendment to IAS 32 Financial Instruments: Presentation – Classification of (effective 1 January 2010)
Rights Issues

4. Status of significant shareholding as at September 30, 2010 is given below:

Shares Percentage

Fauji Fertilizer Company Limited 475,232,996 50.88

Fauji Foundation 161,501,286 17.29

Un - audited Audited
September 30, December 31,
2010 2009
(Rupees ‘000)
5. LONG TERM FINANCING - SECURED

From banking companies and financial institutions

Habib Bank Limited (HBL) 97,348 194,694
Standard Chartered Bank (Pakistan) Limited (SCB) 55,665 111,329
MCB Bank Limited (MCB) 95,962 191,926
Askari Bank Limited (AKBL) 21,429 42,857
Saudi Pak Industrial and Agricultural Investment
Company (Pvt) Limited (SAPICO) 8,019 16,039
Pak Kuwait Investment Company (Pvt) Limited (PKIC) 34,285 68,571
312,708 625,416
Less : Current portion shown under current liabilities 312,708 416,944
- 208,472

6. LONG TERM MURABAHA - SECURED

Faysal Bank Limited (FBL) - a banking company 29,010 58,017
Less : Current portion shown under current liabilities 29,010 38,679
- 19,338

Fauji Fertilizer Bin Qasim Limited 11

 Un - audited Audited
September 30, December 31,
2010 2009
(Rupees ‘000)
7. LONG TERM LOAN - UNSECURED
Government of Pakistan (GOP) loan 3,493,342 3,870,599
Deferred Government Assistance 1,044,062 1,315,006
4,537,404 5,185,605
Less: Current portion shown under current liabilities 648,201 648,201
3,889,203 4,537,404

8. DEFERRED LIABILITIES
Compensated leave absences 157,707 143,808
Deferred tax 8.1 3,730,489 3,909,006
3,888,196 4,052,814
8.1 The balance of deferred tax is in respect of the following
major temporary differences:
Accelerated depreciation 3,812,777 3,994,365
Provision against doubtful advances (18,734) (18,734)
Share of profit of associate 3,266 3,198
Provision for inventory obsolescence (66,820) (69,823)
3,730,489 3,909,006
9. CONTINGENCIES AND COMMITMENTS

Contingencies

i) Indemnity bonds and undertakings given to the customs
authorities for the machinery imported by the Company for
installation at plant site 119,650 119,650

ii) Guarantees issued by banks on behalf of the Company 25,096 30,031

iii) Income tax demands raised on income on local currency

bank deposits/unrealized exchange gain, which demands
have been challenged and are currently in appeal; the
Company expects favorable outcome in appeal 107,208 36,668
iv) Company’s share of contingent liabilities of Fauji Cement
Company Limited as at June 30, 2010. 37,537 37,537

Commitments

i) Capital expenditure - contracted. 494,116 141,727
ii) Letters of credit for purchase of stores, spares and raw
materials 1,529,290 1,381,137
iii) Company’s share of commitments of Fauji Cement
Company Limited as at June 30, 2010. 8,577 60,315
iv) Company’s share of commitments of PMP as at June 30, 2010. 18,579 43,379

12 Fauji Fertilizer Bin Qasim Limited

 Un - audited Audited
September 30, December 31,
2010 2009
(Rupees ‘000)
10. PROPERTY, PLANT AND EQUIPMENT
Opening written down value 15,576,899 15,847,104
Additions 294,296 956,126
Disposals (10,198) (18,742)
Adjustments - net (6,008) (4,200)
Depreciation (943,223) (1,216,759)
Depreciation on disposed off items 4,831 13,370
Closing written down value 14,916,597 15,576,899

11. LONG TERM INVESTMENTS

Investment in joint venture - equity method
Pakistan Maroc Phosphore S.A, Morocco (PMP)
Balance brought forward 1,795,989 2,105,894
Share of profit / (loss) 157,474 (336,015)
Dividend declared - (99,496)
(Loss) / gain on translation of net assets (185,339) 125,606
Closing balance 1,768,124 1,795,989
Investment in associate - equity method
Fauji Cement Company Limited (FCCL)
Balance brought forward 331,983 310,876
Share of profit 676 21,107
Closing balance 11.1 332,659 331,983
Investment - available for sale - unquoted
Arabian Sea Country Club Limited 3,000 3,000
Less: Impairment in value of investment (3,000) (3,000)

2,100,783 2,127,972

11.1 Fair value of the investment in FCCL as at September 30, 2010 was Rs. 87.94 million
(December 31, 2009: Rs. 115.50 million).

Fauji Fertilizer Bin Qasim Limited 13

 Quarter ended Nine months ended
September 30, September 30,

2010 2009 2010 2009
(Rupees ‘000) (Rupees ‘000)
12. COST OF SALES

Raw materials consumed 6,410,087 4,112,113 16,380,138 11,258,479

Packing materials consumed 129,872 120,434 410,800 317,497
Fuel and power 670,028 515,870 1,741,916 1,481,590
Chemicals and supplies consumed 39,671 41,500 110,913 128,270
Salaries, wages and benefits 390,732 209,582 822,933 661,876
Rent, rates and taxes 4,981 6,100 19,542 18,170
Insurance 20,477 17,880 59,979 52,290
Travel and conveyance 2,013 13,111 38,755 39,542
Repairs and maintenance 98,445 135,682 733,934 588,373
Communication, establishment and others 18,857 10,186 39,115 28,082
Depreciation 304,606 300,920 930,377 899,609
Opening stock -work in process 8,270 15,048 5,140 3,602
Closing stock -work in process (6,521) (30,459) (6,521) (30,459)
Cost of goods manufactured 8,091,518 5,467,967 21,287,021 15,446,921
Opening stock -own manufactured fertilizers 5,283,673 3,513,503 170,926 5,583,460
Closing stock - own manufactured fertilizers (5,939,263) (390,912) (5,939,263) (390,912)
Cost of sales - own manufactured fertilizers 7,435,928 8,590,558 15,518,684 20,639,469

14 Fauji Fertilizer Bin Qasim Limited

 Nine months ended September 30,
2010 2009
(Rupees ‘000)
13. CASH GENERATED FROM OPERATIONS
Profit before taxation 4,307,523 3,100,351
Adjustment for:
Provision for gratuity 25,061 29,922

Exchange loss 56,183 100,436

Provision for compensated absences 20,592 26,253

Provision for Workers’ (Profit) Participation Fund 231,331 167,513

Provision for Workers’ Welfare Fund 87,766 82,395

Property, plant and equipment adjustment 6,008 -

Depreciation 943,223 902,913

Finance cost 663,780 1,087,607

Profit on bank balances (229,971) (384,569)

Share of (profit) / loss of associate and joint venture (158,150) 599,585

Gain on sale of investments (407,077) (196,856)

Gain on sale of property, plant and equipment (1,625) (1,817)

Operating profit before working capital changes 5,544,644 5,513,733

Changes in working capital
Stores and spares 62,469 (412,398)
Stock in trade (5,818,676) 3,893,392
Trade debts (4,137,370) (7,736)
Advances (22,116) (11,209)
Trade deposits and short term prepayments (31,030) (21,225)
Other receivables 218,044 12,486,367
Trade and other payables 97,354 (257,321)
Sales tax - 43

(9,631,325) 15,669,913


Cash (used in) / generated from operations (4,086,681) 21,183,646

Fauji Fertilizer Bin Qasim Limited 15

 Nine months ended September 30,

14. RELATED PARTY TRANSACTIONS

Transaction with the holding company
Services and material acquired
449,989 356,825
Services and material provided
870 2,262
Commission charged to the Company
13,848 19,556
Dividend paid
1,924,694 1,306,891
Balance receivable -unsecured
4,614,098 161,203

Transaction with associated undertakings due to common
directorship
Goods sold 2,469 574
Rent charged to the Company 758 689
Dividend paid 654,080 444,129
Balance receivable at the period end-unsecured 1,833 -

Transaction with joint venture company
Purchase of raw materials 13,728,696 10,158,079
Expenses incurred on behalf of joint venture company 17,638 124,550
Balance payable - secured 3,792,374 2,412,237
Balance receivable - secured 11,207 11,005

Other related parties
Contribution to Provident Fund 20,290 16,902
Contribution to Gratuity Fund 25,062 29,922
Remuneration including benefits and perquisites of
Chief Executive Officer and executives.
No of persons September 30, 2010 : 1 and 172.
(September 30, 2009 : 1 and 156) 619,745 429,340
Payment to Workers’ (Profit) Participation Fund 53,337 18,891
Payment to Workers’ Welfare Fund 129,543 -
Balance payable - unsecured 470,543 333,291

* Balance of accounts appearing as comparatives are as at December 31, 2009.

15. General
15.1 Figures have been rounded off to the nearest thousand rupees.
15.2 These financial statements were authorized for issue by the Board of Directors of the Company in
their meeting held on October 21, 2010.
15.3 The Board of Directors in their meeting held on October 21, 2010 have proposed an interim dividend
of Rs 1.25 per ordinary share.

CHAIRMAN CHIEF EXECUTIVE DIRECTOR

16 Fauji Fertilizer Bin Qasim Limited