FACT Question Papers - FACT Interview Questions and Answers updated on Oct 2025

STORY OF FACT
Agriculture has always been the mainstay of our people and we have been tilling the land and reaping the harvests for hundreds of years. This naturally found us in a situation where the land was becoming les and les bountiful. The yield was getting lower and lower and in the early half of 20th century we found we had to depend on imports to meet out minimum food grain requirement. The simple truth that land had been losing its fertility through long years of repeated cultivation dawned on us much too late. What we were putting back in the form of organic manure was hardly adequate to replenish the soil or to correct the imbalance on the fertility status of the land under cultivation. Advanced countries elsewhere has discovered the answer to this problem in chemical fertilisers and some of the large scale farming entrepreneurs like foreign owned plantations in India also were importing chemical fertilisers for their own use.

The Second World War which cut off traditional sources of import of food grains aggravated our problem and the famine conditions that prevailed in some parts of the country made us sit up and think. Chemical fertiliser was the answer, but we did not have the technical know-how, raw materials or the resources for setting up fertiliser plants. It was then that a daring and farsighted administrator of Travancore (Kerala),Dr. C.P. Ramaswamy Iyer, had overcome the obstacles and paved the way for setting up a chemical fertiliser factory, in a till then unheard village in Kerala with what little resource that was available then and adopting technology and raw materials that could be mustered up. The immediate objective was to grow more food using the wonder replenisher, chemical fertilisers. This was how FACT came to be founded in what is now known as Udyogamandal, on the banks of river Periyar in 1944. It was then the first large scale fertiliser factory in the entire country.

EVOLUTION

Industry Structure and Development

FACT, India's first large scale fertiliser unit was set up in 1943. In 1947, FACT Udyogamandal started production of Ammonium Sulphate with an installed capacity of 10,000 MT Nitrogen. FACT became a Kerala State Public Sector Enterprise on 15th August 1960 and 21st November 1962, the Government of India became the major shareholder.

The 2nd stage of expansion of FACT was completed in 1962. The 3rd stage of expansion of FACT was completed in 1965 with setting up of a new Ammonium Sulphate Plant.

FACT Engineering and Design Organisation was set up on 24th July 1965 to meet the emerging need for indigenous capabilities in vital areas of Engineering, Design and Consultancy for establishing large and modern fertiliser plants. FEDO has since then diversified into Chemicals, Petrochemicals, Hydrometallurgy, Pharmaceutical and other areas. FEDO offers services from project identification and evaluation stage to plant design, procurement, project management, site supervision and commissioning of new plants as well as revamping and modernisation of old plants.

FACT Engineering Works was established on 13th April 1966 as a unit to fabricate and install equipments for fertiliser plants. Over the years FEW developed capabilities in the fabrication of pressure vessels and heat exchangers. FEW has also undertaken laying of cross country piping and fabrication and installation of large penstocks of hydel projects.

The Cochin Division of FACT, the 2nd production Unit was set up at Ambalamedu and the 1st phase was commissioned in 1973. The 2nd phase of FACT Cochin Division was commissioned in 1976.

As a diversification plans from the traditional field of Fertilisers and Chemicals, 50000 TPA Caprolactam Plant at Udyogamandal was commissioned in 1990.

FACT set up 900 TPD Ammonia Plant at Udyogamandal at a cost of 638 Crores following an order of the High Court of Kerala in February 1994 on a Public Interest Litigation, to decommission the existing imported Ammonia storage and handling facility at Willington Island (Cochin Port). The Ammonia plant was commissioned in 1998.

The company's main business is manufacture and marketing of (a) Fertilisers (b) Caprolactam and Engineering Consultancy and Fabrication of Equipment.

FACT CODE OF BUSINESS CONDUCT AND ETHICS

This Code of Business Conduct Summaries the Standards of Business Conduct that guide the activities of all members of the Board of Directors and Officers of the company to ensure that the organization is managed in a manner to protect the interest of all stakeholders. This code applies to all Directors and Officers of FACT and in additions to the provisions/rules contained in the FACT Employees (Conduct, Disciplines & Appeal) Rules 1977, terms and Conditions of the appointment order and the directives issued by the Government from time to time.

This Code of Conduct is issued/prescribed to deter wrongdoing and to promote honest and ethical conduct including the ethical handling of actual or apparent conflict of interest between personal and professional relationships.

1. Ethical Conduct

All members of Board of Directors of the Company/Officers shall deal on behalf of the Company with professionalism, honesty and integrity, as well as high moral and ethical standard. Such conduct shall be fair and transparent.

2. Conflict of Interest

No Director/Officer of the Company shall engage in any business, relationship or activity which might detrimentally conflict with the interest of the Company or the policy issued by the Government from time to time. Directors/Officers should not place themselves or remain in a position in which their private interest conflict with the interest of the Company. If there is any conflict of interest, the interest of the Company should prevail.

3. Confidentiality concerning Company Affairs

It is the policy of FACT that the business affairs of the Company are confidential and should not be discussed with anyone outside the organization except for information that has already been made available to the public. No Director/Officer shall derive any benefit or assist others to derive any benefit from the access to and possession of information about the Company which is not in the public domain and thus constitutes insider information. No Director/Officer shall use any insider information for meeting or giving advice on investment decisions on shares of FACT.

4. Protecting Company Assets

The assets of FACT should not be misused but employed for the purpose of conducting the business for which they are duly authorized. The assets include tangible as well as intangible assets such as land and building, machinery and equipments, systems, facilities, proprietary information, relationship with customers and suppliers etc.

5. Integrity

Directors/Officers must conduct the business of the Company fairly with honesty and transparency. Everyone at all time shall ensure the integrity of data or information furnished to the Company.

6. Excellence

Everyone must constantly strive to achieve the highest possible standards in the days to day activities and the quality of goods and services to the entire satisfaction of all the stakeholders.

7. Unity

Everyone in FACT shall work cohesively with the colleagues and fair in dealing with the customers, suppliers and other stakeholders and build a strong relationship based on tolerance, understanding and mutual cooperation.

8. Responsibility

Everyone must continue to be responsible to the Company, and its stakeholders and the environment in which they work.

9. Accountability

The Board of Directors are accountable to the shareholders and other Officers are accountable to the Board of Directors.

10. Trusteeship

As professional managers, Board of Directors and other Officers are conscious that FACT has been given to them in trust by all the stakeholders. They will redeem the trust reposed in them by continuously adding value to FACT.

11. Adherence of Government Policy, Guideline

It is the endeavor of the Board and Officers of FACT to implement various policies and guidelines issued by the Government from time to time.

12. Innovation

Everyone shall constantly innovate and strive to better our process, products, services and management practices.

13. Shareholders

FACT shall be committed to shareholder value and comply with all laws/ regulations/ directives that govern and protect the rights and interest of shareholders.

The Board of Directors shall inform the shareholders about all relevant aspects of the Company’s business and disclose such information in accordance with the respective laws/regulations and agreements.

14. Corporate Opportunities

All members of the Board/Officers of FACT have a duty to provide to the Company the benefits of the opportunities discovered through the use of Company resources and in the course of employment. All Directors and Officers are prohibited from taking for themselves, opportunities that are discovered by using the properties of the Company or through the information or positions they occupy.

15. Health and Safety

FACT is committed to maintaining the work environment safe and secure and healthy for its employees and others. The Company complies with all applicable laws and regulations relating to safety and health in the work place. It is expected that everyone should promote a positive working environment for all. Any unsafe or hazardous conditions or materials, injuries and accidents connected with the business should be reported. All kinds of threats or acts of physical violence or intimidation are prohibited.

16. Compliance with Law

It is the policy of FACT to comply with all applicable laws including laws on employment, health, safety and environmental laws. Every Directors and Officers of FACT is expected to comply with all such laws, rules and regulations. Transactions directly or indirectly involving securities of the Company should not be undertaken without prior clearance from the Competent Authorities. All Directors/Officers should consult legal department of the Company before taking any legal action for and on behalf of the Company.

17. No Rights created

This code is a statement of the fundamental principles and key policies and proceedings that govern the conduct of business of FACT. It is not intended to, and does not, in any way, constitute an employment contract or an assurance of continued employment or create any right in any Employee, Directors, Client and other stakeholders of the Company.

18. Compliance with Code of Conduct

All Members of the Board and Officers of the Company shall comply with the provisions of this code of ethics and any violation will attract disciplinary action as deemed fit by the Chairman and Managing Director of the Company. If any Director or Officer knows or suspects violation of this code of conduct, he/she must immediately report the same to the Board of Directors or Chairman and Managing Director of the Company.

19. Interpretation of Code

Any question or interpretation under this code of conduct will be decided by the Board of Directors of the Company and the decision of the Board will be final and binding to all. 

Milestone

22-09-1943 - Incorporation
26-06-1947 - Production started
15-08-1960 - FACT came under Public Sector
21-11-1962 - Govt. of India major share holder
1959-1960 - UD 1st stage expansion completed
1962 - UD 2nd stage expansion completed
16-03-1964 - ICMA Award for utilizing byproduct gypsum
15-10-1966 - UD 3rd stage expansion completed
1971 - ICMA Award for technology transfer
01-10-1971 - UD 4th stage Ammonia Plant
01-10-1973 - UD 4th stage 150TPD Ammonium Phosphate
24-07-1965 - FACT Engineering and Design Organisation
13-04-1966 - FACT Engineering Works
07-06-1966 - CD Phase-I License issued
27-04-1973 - CD I Urea Plant commissioned
10-11-1976 - CD II Sulphuric Acid Plant commissioned
10-12-1976 - CD II Phosphoric Acid Plant commissioned
10-01-1977 - CD II NPK trial run started
01-04-1976 - CD II NPK commercial production started
18-05-1984 - PD Caprolactam technical collaboration agreement
14-09-1984 - PD Zero date of ASCL Project
06-08-1985 - PD Caprolactam License issued
13-12-1989 - FEW shifted to Palluruthy
26-07-1989 - Award for excellence in performance 1986/7 from the Prime Minister of India
20-12-1990 - CD-12MW Captive Power Plant
01-03-1991 - PD Caprolactam commercial production started
01-03-1991 - UD New Ammonium Sulphate commercial production started
25-09-1993 - Foundation stone - 900 TPD Ammonia Plant
23-03-1998 - 900 TPD Ammonia plant commercial production started