Details

Case

Educator Copy

National Fertilizer Marketing Limited

Muntazar Bashir Ahmed


INDUSTRY : Fertilizer

AREA : Accounting & Control

ORGANIZATION : National Fetilizer Marketing Limited

LENGTH : 23

LUMS No : 01-344-89-1

PUBLICATION YEAR : 1989

DESCRIPTION

KEYWORDS:

National Fertilizer Marketing,Limited,Accounting,Control,Fertilizer,Forecast,Payment Operations


DESCRIPTION:

The General Manager Finance of NFML, Shaukat Mahmood reviewed the previous year's quarterly payments due to the factories, and the company's cash position in order to be able to forecast cash requirements to establish new bank borrowing limits for the coming year. NFML was exclusively responsible for marketing and distributing fertilizer produced by the six factories owned by its parent company, National Fertilizer Corporation. Mahmood also wanted to review the cash flow pattern and the items affecting the financial charges borne by NFML. He was anxious that financial costs be minimized. However, there was a trade-off between liquidity requirements and minimization of financial charges. The case traces sales and payment operations at NFML.


LEARNING OBJECTIVES:


SUBJECTS COVERED:

Accounting & Control