NATIONAL FERTILIZERS LIMITED

Statutory laws and regulations
The above policy has been approved by CMD and shall be issued and circulated to all personnel at Corporate Office & Marketing Division to indicate the NFL Management's commitment to quality. A quality policy card shall be provided to all employees at Corporate Office & Marketing Division and it will be ensured that the policy is understood at all levels of the organization. This Policy will be reviewed from time to time ( at least once in a year) to ensure its continued suitabilit

The objective of quality policy shall be :
• Reviewing the business process for better customers satisfaction as a continuing process (Management Review Meetings Once in a Quarter, MOU Review once in a Year)
• Continuous up-gradation of skill of the Company employees. (!00% Employees at CO and Marketing also to be trained for QMS in Three Years period, For units this programme is nearing completion)
• To ensure MOU Target for Marketing Extension Services are achieved on continuing basis
• To produce high quality urea at the Units by reducing the biuret , dust and moisture content and maintaining the product as per Fertilizer Control Order (FCO).
• To produce high quality Ammonia at the Units.
• To ensure quality packaging / bagging.
• Approach towards zero discharge of effluent and zero accident at Units.

The Quality Management System has been planned to ensure that:




1. The requirements indicated at para General Requirements given above and Quality Objectives as given at para Quality Objectives above are met.

2. The integrity of the Quality Management System (QMS) is maintained when changes to QMS are implemented.

3. Manufacture of Ammonia and Urea at Units is a continuous process. Requirement for meeting quality have been built into the process. The quality of the Ammonia and Urea is being controlled by documented procedures for process control and quality control at each of the unit.

• The responsibility and authority of the persons who manage, perform and verify work affecting quality is defined and is shown in the form of organization chart given at Annexure 2 . The interrelationship of various departmental heads is also shown in the organization chart.
  The authority and responsibility of the Directors and of the departmental heads at Corporate Office and at Central Marketing Office shall be as under.

  Director (technical) Role /job Summary Director (Tech) provides technical leadership to all the units and Heads of these units shall report to him functionally. He is basically responsible for answering technical queries from outside agencies such as Ministry, Parliament etc. He coordinates with GM(T) for process integrity, improvements & innovations, new projects, expansion schemes including feasibility studies and techno-economic evaluation of projects, and also safety, environment & pollution control. He coordinates with GM(R&D) to improve products, processes, energy costs etc. and also fertilizer related research to add value to the farmers and gain competitive edge. He shall also coordinate with GM (Matls) for Feedstock & Supplies for all the units as well as guidelines for inventory management of the company. He is Member of the Board of Directors of NFL & reports to C&MD. Key Responsibilities/ Accountability Provides technical leadership to the company in the form of process improvements & innovations. Coordinates in technical aspects on new projects/expansion schemes. Coordinates the technical activities at Corporate level with Finance, Personnel & Marketing, etc. Is responsible for handling and dealing with technical queries with Government/External agencies. Coordinates technical aspects of the proposals relating to diversification, revamp and expansion schemes. Updates, develops and formulates guidelines on systems & procedures for selected technical contracts. Coordinates with GM(R&D) on Research Development and updates new technologies in fertilizer manufacturing, applications of fertilizer and diversification schemes for the company. Coordinates with GM(Matls) on Inventory Management, regular and timely supply of feedstock for all the units at economical price. Maintains harmonious interpersonal and functional relations with unit heads on technical matters. Director (finance) Role/job Summary Provides support on financial aspects in formulating Corporate objectives policy. Projects company's financial position according to corporate plan and programme on short and long term basis and to arrange loans and equity capitals for operational requirements. Contributes to profitability through budgetary controls and tax planning. Manages relationship across functions and units to achieve unified role perspective. Revises & updates accounting policies, procedures, methods and financial functionaries outlook and competencies to bring them in line with the requirements of changing environment. Strengthen contractual and legal competencies, Advises C&MD and all functional Directors on issue of legal liabilities, entitlement and compliance. He is a member of the Board of Directors and a member of the Executive Committee of Directors. Key Responsibilities/accountabilities Advises C&MD on all matters concerning financial management and on short term or long term change in company's financial policies and plans keeping in view the changes in economic policies and business factors affecting company's operations. Draws long term projections relating to fund requirement and optimizes sourceship. Formulates corporate financial and tax polices and arranges loan, equity and other funds for operational & capital requirements on short term and long term basis. Improve system and formulates guidelines for performance budget and budgetary controls. Develops and updates appropriate accounting systems, procedures and ensures their implementation. Provides financial advice on matters referred to the Executive Committee of Directors for decision. Negotiates credit processing and follows up with Ministry of Finance, Banks & Financial Institutions. Issues guidelines for effective utilization of working capital management. Oversees efficacy of financial matters in finalization of major contracts. Ensures compliance of proprietary audit and review of accounts by CAG. Maintains liaison with various Governmental, Industry and Financial Agencies including M.A.B, CAG, etc. Directs, guides and controls all aspects of work concerning corporate finance, accounting, internal audit, budget, management information and cost control. Ensures timely preparation of plans and programmes for generation of resources with reference to annual budget. Updates of accounting system data and prepare Balance sheet and other financial documents on schedule. Analyses financial results of all operations and report to Chief Executive/Board. Introduces sound procedures and systems for adequate control of expenditure and examines all proposals for expenditure for their cost effectiveness. He is responsible for internal audit. Director (marketing) Role/job Summary Marketing Director has the overall responsibility for NFL marketing division. He is responsible for planning, analysis and control of marketing functions, marketing research and development of the marketing personnel. He is a member of the Board of Directors of NFL. Key Responsibilities/ Accountability Plans and develops marketing strategies to achieve targets. Delegates and determines targets within the Department. Determines channel of distribution and logistics plan including warehousing and transportation Reviews of Market analysis. Implements the short term and long term strategy for sales depending upon marketing environment. Delivers goods and services and completes all accounts related functions. Develops marketing infrastructure including distribution channels, storage, logistics including H&T Contractors. Monitors sales through distribution channel, raises invoices & collects payments and maintains party-wise accounts. Monitors inventory, debtor and marketing costs.Brand equity and customer services including sales promotion viz. agricultural fair, farmers training programms, dealers meeting etc. Provides farmers education through soil testing and other related areas. Liaises with State/Central Govt. personnel, Railway Board, Ministry, FAI, etc. Develops staff through on the job coaching and technical training programms for new as well as existing incumbents. Executive Director (p&a) Role/job Summary He is the corporate chief of human resource department and reports to C&MD. He has overall corporate responsibility for activities relating to Industrial Relations, Personnel & Administration, HRD and Public Relations. Key Responsibilities/ Accountability Formulates IR and HRD policies and strategies linked to corporate objectives. Communicates and obtains feed-back on policiec throughout the company. Develops and implements manpower recruitment and selection plan. Acts as a consultant and adviser to senior managers in matters pertaining to HR. Formulates company policy and strategies to attract, retain and motivate staff. Develops and administers performance review. Oversees pre-employment, on-the-job and post-employment skill development programmes. Identifies key areas for organizational development and undertakes morale and motivation studies. Ensures compliance of all legal/statutory requirements and Govt. directives relating to personnel matters. Monitors legal cases to avoid prosecution of officials of the company. Maintains liaison with State/Central Govt. authorities, undertakes activities to build organizational image both within and outside. Implements public relation strategies to build organizational image. Maintains information and develops system relating to personnel and HR. Provides administrative, medical and security services to all the units of the company. Executive Director (marketing) Role/job Summary General Manager (Sales) heads the all India sales and controls the field sales organization of NFL. He looks after the sales of the products in the country and allocates targets to the Zonal Managers for implementation. He reviews the sales activities and reports to Director (Mktg.). Key Responsibilities/ Accountability Implements the marketing policies to achieve sales targets. Evolves strategy for marketing company’s products keeping in view the business and economic environment. Ensures conformance to specifications of the product at different stages. Monitors despatches, transit losses and determines bags requirements. Looks after marketing and sales of bio-fertilizers. Takes follow-up action in settlement of Railway claims and transportation and commercial aspects. Identifies training needs of personnel reporting to him. Maintains liaison with state-level officials. Monitors outstanding and their recovery. Chief General Manager (marketing) Role/job Summary Addl. General Manager (Mktg. Services), based on job functions reports to Director(Mktg.)/GM(Mktg.). Facilitates movement and positioning of materials by timely lining up of handling & transportation contracts. Prepares movement plans and marketing budget. Is responsible for monitoring of agricultural services throughout the country. Maintains effective Management Information Services. Key Responsibilities/ Accountability Ensures placement of handling and transportation contractors as required by the Sales Division. Is responsible for total marketing communication. Develops and implements MIS. Provides Advertisements and Sales Promotion support. Liaises and communicates with Ministry on all aspects of marketing. Reviews and implements Agricultural services. Develops staff through coaching, counseling, feedback and on the job training. Chief General Manager (cp) Role/job Summary As Head of the Corporate Planning, he is responsible for developing corporate plans including planning, consolidation and expansion of existing plants and marketing of specialized services. Reports to CMD. Key Responsibilities/ Accountability Develops plans for expansion and diversification of existing plants. Develops new projects in India and abroad. Develops markets for specialized services. Monitors implementation of corporate plan. Networking and developing relations with active associations and professional bodies. General Manager (management Services) Role/job Summary General Manager (Mgmt. Services) advises all the Units and Marketing Division on IT & MIS, its design, implementation and improvement. He provides necessary information/data to the top Management for decision support and reports to C&MD. Key Responsibilities/ Accountability Prepares, consolidates and coordinates all MIS reports for review by top Management and to the Board and Govt. and provides feedback to the Units. Prepares special reports and/or makes presentations when requested for internal and external agencies such as Parliamentary Committee, Ministry, Board etc. Develops and Administers information technology, both Hardware & Software. Coordinates with various agencies regarding QRM,PRM etc. Prepares drafts MoU its review and monitors its progress. Prepares production plans in consultation with concerned Departments, Units, etc. Conducts on request specific productivity studies from time to time. Compiles and provides information to various outside agencies relating to various Contests, Awards etc. Provides IT support for the Corporate Planning. Implements Incentive Schemes. Maintains of NFL's Website. General Manager (industrial Products) Role/job Summary Develops and implements Marketing and Sales plan for Industrial Products and enhance the range of such products. Key Responsibilities/ Accountability Plans and develops marketing strategies to achieve targets. Ensures optimum product-mix for maximum revenue collection in coordination with the company’s policy on the main product i.e. Fertilizers. Formulates strategies for securing a stable and remunerative market for the Company’s Industrial Products. Maintains liaison with respective Ministry and Govt. departments. Identifies customer needs and expectations that can be met by product quality. Plans for increasing market share of Industrial Product of the Company. Undertakes Marketing Research and Planning of Sales. Identifies training need and imparts on-the-job training. General Manager (finance) Role/job Summary General Manager (Finance) is the principal staff officer on all financial matters and plays a key role in helping the management to achieve the company’s objectives. He provides specialized services in the area of budgeting, controlling, pricing, short/medium long-range financial perspectives, review of proposals involving long term financial objectives, computerized information system, etc. He reports to Director (Finance). Key Responsibilities/ Accountability Helps frame company’s financial policies based on Corporate policies and develops budget proposals. Maintains a cash management system involving financial control for collection, allocation and use of funds. Monitors irregularities in financial operations and devises a system for doing so & puts up a report based on these findings to Director (Finance) and C&MD. Advises in all operations and investment decisions at all levels of the company. Coordinates and updates periodically annual, capital, revenue, long term operating and capital expenditure budgets. Ensures that annual accounts and quarterly accounts are prepared in time and attends all matters relating to statutory requirements of Accounting and Reporting. Attends to all tax matters relating to the Company. Carries out, when necessary, studies to reduce costs, improve efficiency and profitability. Maintains a system of cost accounts to enable compilation and control of costs. Reviews cost of production data and gives periodical reports to management, highlighting deviations from norms & standards established. Arranges appropriate insurance policies, covers for Assets of the organization in discussion with the concerned operating officers. Reviews internal resource generation, its utilization towards capital expenditure, debt/interest payment and working capital needs. Advises and recommends measures for meeting the resource gap and its sources. Advises on pricing policy in respect of products, disposal of surpluses, damaged equipments etc. Also advises on credit policy. Maintains adequate system of stores accounts. Dy.general Manager (internal Audit) Role/job Summary Dy.General Manager (Internal Audit) reports to Director (Finance). He has the overall responsibility for operating and monitoring of the Internal Audit System commensurate with the size/business objectives of the Company and Management Audit Function. Also coordinates the working of the Management Audit Committee in association with the Company Secretary and reports findings of the Committee to the Board of Directors. Key Responsibilities/ Accountability Undertakes independent and continuous internal appraisal activity of various operations of the Company. Assists different departments of the Organization in effective discharge of the responsibility by providing them timely analysis, appraisal, recommendations and comments relating to various activities reviewed. Coordinates the functioning of Internal Audit activities of Units and suggests improvement in system and procedures. Communicates to all Units, audit observations of common interest for taking timely remedial action. Coordinates the replies to audit reports received from Govt. Auditors and ensures that requirements of Govt. Auditors are complied with. Analyses and monitors abnormalities/irregularities. Ensures that Company's assets are properly accounted for and safeguarded for losses and are properly used. Reviews the procedures of the organization in terms of their adequacy, soundness and effectiveness. Secures compliance of prescribed standard accounting practices, established policies, plan procedures. Analyses and evaluates internal check system. Verifies accuracy or reliability of the financial, statistical and accounting records. Reviews and updates procedures and systems of Internal Audit in line with advancement in Information Technology or guidelines from Govt. from time to time. General Manager (Technical) Role/job Summary General Manager(Tech.) has overall responsibility for process integration, improvements and innovations. He advises all the units on technical matters, safety, environment & pollution control issues. He is responsible for, Preliminary Feasibility Report, FR, DFR, clearance coordination, handing over to the execution group and progress information for top management with regard to new projects and expansion schemes. Key Responsibilities/ Accountability Analyses technical data of plants relating to production against norms and renders technical advice to the units. Evaluates technical & commercial viability of the proposals relating to the projects, revamps and expansion schemes. Monitors execution of the projects. Provides technical data to Finance Deptt. in relation to Retention Price System. Initiates studies on cost, efficiency & profitability. Plans for process improvements, innovations & excellence keeping in view the latest technology. Coordinates technical activities with Finance, Personnel & Marketing etc. Audits Safety, Environment & Pollution control and follows up for implementation. General Manager (materials) Role/job Summary General Manager(Materials) has overall responsibility for arranging all raw materials for the Units of NFL as well as centralized procurement of items falling in his purview. He is responsible for material planning & inventory management in respect of the items being procured through Corporate Office. He reports to Director (Tech.). Key Responsibilities/ Accountability Ensures timely evaluation and processing of tenders for the items being procured through Corporate Office. Follows-up of contracts and purchase orders for its timely execution. Analyses actual cost of raw materials and items pertaining to centralized procurement. Materials and inventory control. Commercial negotiations. Liaisoning with customers and railways and other statutory authorities. General Manager (r&d) Role/job Summary General Manager(R&D) has overall responsibility for research and development work in the company. He is responsible mainly for Fertilizer Research: i) manufacturing - related i.e. to improve products, processes, energy and other conversion costs, and ii) Application - related i.e. to find out new patterns of fertilizer applications under different conditions in the lab. & in the field so as to add value to the farmer. He is also responsible for diversification - related research scanning technology, data base, forecasting and evaluation, etc. He reports to Director (Tech.). Key Responsibilities/ Accountability To get studies done for improving manufacturing related activities. Identify cost reduction potential through R&D in energy and other conversion costs, etc. To explore new patterns of fertilizer application in the lab. & in the field through research & studies. Based on research and studies, develop proposals relating to diversification in various areas. Dy. General Manager (imw S&d) Role/job Summary Dy. General Manager (IMW S&D), based on job functions reports to ED(Mktg.). Facilitates movement and positioning of materials by timely lining up of handling & transportation contracts. Prepares movement plans and marketing budget. Is responsible for monitoring of agricultural services throughout the country. Maintains effective Management Information Services. Key Responsibilities/ Accountability Ensures placement of handling and transportation contractors as required by the Sales Division. Is responsible for total marketing communication. Develops and implements MIS. Provides Advertisements and Sales Promotion support. Liaises and communicates with Ministry on all aspects of marketing. Reviews and implements Agricultural services. Develops staff through coaching, counseling, feedback and on the job training.

General Manager(MS) has been appointed as MANAGEMENT REPRESENTATIVE (MR) by CMD.
1. He shall be authorized and made responsible for ensuring that for assuring that the processes needed for the Quality Management system are established , implemented and maintained.
2. He shall report to top management about the performance of quality management system and any need for its improvement.
3. He shall ensure the promotion of awareness of customers requirement throughout NFL.
4. He shall also liaise with external parties on matter related to quality.
5. He shall co-ordinate Management review meetings.

To ensure awareness of quality management system at all levels, a comprehensive training shall be organized for all levels of employees. This will be ensured that within a period of about 6 to 12 months, 100% employees at Corporate Office and CMO are covered in this training programme.
For ensuring communication on continual basis, Heads of each Department will be associated in the Management Review Meetings and each Head of Deptt. Shall ensure propagation of information on Quality Management System in his/her Deptt.

In order to ensure continuing suitability, adequacy and effectiveness of the quality management system, review of the quality management system shall be carried out. This review shall include assessing opportunities for improvement and need for changes to the quality management system, including the quality policy and quality objectives. Such reviews shall be carried out at least twice in a year under the chairmanship of CMD.
The records from the management reviews shall be maintained for further follow up action. The detailed management review procedure (MR-QP-03) is included in the Common Procedures Manual.

The agenda of management review meeting shall include the following.

1. Review of report of last management review meeting.
2. Review of corrective and preventive actions taken.
3. Review of internal audit report.
4. Customer feed back.
5. Review of effectiveness of Quality Policy and quality objectives.
6. Recommendations for improvement, and
7. Any other point as appropriate.

The output from the management review shall include any decision and actions related to :

1. improvement of the effectiveness of the quality management system and its processes,
2. improvement of product related to customer requirements, and
3. resource needs.

The requirement of human resources shall be identified by respective department heads and the same shall be reviewed by the Executive Director(P&A & approved by Chairman and Managing Director .After obtaining the above approval, the head of personnel and administration department at Corporate Office / Units shall take appropriate action for as per documented procedure covered in the Personnel & Administrative Procedures Manual (PA-PM-01).

Departmental heads shall be responsible for assigning trained personnel for performing various jobs being done in their department. They shall also be responsible for identifying persons in their department to be trained for internal quality audits. The assessment of training needs of employee and providing training shall be done regularly as per procedure covered in the Personnel & Administrative Procedures Manual (PA-PM-01).

1. Documented procedure shall be established and maintained to ensure that all personnel are suitably trained to meet the skills required for the quality related functions entrusted to them,

2. Respective Human Resource Department (HRD) at Units/Corporate Office shall get the training needs identified of the employees of NFL at Units/Corporate Office in consultation with concerned departmental head.

3. Respective HRD shall organize training of personnel as per identified training needs by conducting in-house training programme or sponsoring them to external training programs being arranged by outside agencies.

4. Respective HRD shall maintain & up-date the training records.

1. The requirement relating to customer like delivery of product and post delivery activities are covered in the Marketing Manual (MK-MM-01).

2. In addition to its products NFL provides several services for its final customer the Farmers in the form of Marketing Extension Services such as Soil Testing, Training for better use of Fertilizers, Crop protection etc. The extent of these services is covered in the MOU between the company and the Government which is signed every year by CMD NFL on behalf of the Company and Secretary (Fertilizers) on behalf of the Government. These targets are based on continual improvement efforts for the Quality of Product and Services.

3. As regards to statuary requirement, the main product i.e. Urea Fertilizer is covered under Fertilizer Control Order (FCO). FCO lays down the product specifications including its packaging etc.

1. The main product urea as well as other intermediate products are basically chemical compounds having fixed chemical composition which is spelled out in each case. One of the product i.e. Calcium Ammonium Nitrate (CAN) is a chemical mixture. Quality of this product is also controlled as per FCO after revamping of Nangal, production of this item is very small.

2. The targets and implementation of the Extension services not only is reviewed in house by the top management but it is also reviewed by the the special Task Force as part of MOU system.

3. Requirements with respect to Review of Contract etc are covered in the Marketing Manual (MK-MM-01)

For ensuring implementation of effective arrangements for communication with the customers, following shall be carried out by NFL:

1. Product information shall be provided by printing of relevant information on packaging of the product, through description in delivery order.

2. Customer feed back and customer complaints shall be treated as per procedure No.MD-QP-01. Beside this regular feed back, information is also collected & discussed in the dealers' conferences, which are held from time to time.

3. NFL website www.nationalfertilizers.com gives latest information with respect to Marketing extension plan as part of MOU. This website also gives salient features of NFL products, status of production, marketing, rates etc. The information on this website is updated within a week of its change.

Documented procedures (Purchase Manual .MT-PM-01) have been laid down to ensure that the purchased items conform to the required specifications. For ensuring that the suppliers / bidders are selected considering their ability to deliver and maintain the required quality following aspects will be considered .

• Purchase section of the Material Deptt. shall maintain item wise list of approved vendors / sub contractors for each category of material / part after evaluating them.

• Purchase section shall develop new sub-contractors as an on-going exercise.

• Purchase shall periodically up-date the approved list of vendors / sub-contractors once in three years as per NFL purchase manual MT-PM-01 &. MT-VL-01 / MT-CL-01.

• The evaluation of approved vendors / sub-contractors shall also be done considering criteria such as timely supply, rejections, and quality aspects.

• Selection and evaluation of sub-contractors shall be as per procedure for vendors / subcontractor selection and evaluation.

• Purchase section shall maintain evaluation records of the approved vendors / Subcontractors.

To ensure that the Purchase product meets all the quality requirements, Purchase document shall contain data clearly describing the products ordered including where applicable.

1. Type
2. Title
3. Class
4. Quantity
5. Grade
6. Delivery
7. Inspection requirements
8. Specification , Drawing
9. Basis of acceptance
10. Process requirement etc.,

    The respective department shall be responsible for updating all technical data and the technical specifications required for the procurement of equipment/services to be covered by a contract and/or Purchase order, thereby observing all contractual requirements.

    Purchase of material shall be as per procedure (MT-PM-01). The purchasing document shall also include where applicable approved vendors, inspection agency, stages of inspection, material attestation, test and guarantee certificate.

    The Finance & Accounts shall review and concur each purchase order prior to release. Amendment to purchase order shall be done on mutual requirement of both the parties. The processing of amendments internally at NFL & Marketing Division shall be as per Purchase procedure (MT-PM-01).

If required NFL shall verify/inspect the material/product at sub-contractor's premises before release for dispatch. The purchase document shall indicate such requirements.
Where specified in the contract, the NFL customer or its representative shall be afforded the right to verify at sub-contractor/NFL premises that the product conforms to the specified requirement.
However, NFL shall remain responsible for the quality of the products purchased even after it has been accepted by its authorized representative. Records of purchases (i.e. purchase order ) shall be maintained in the materials department.