PROJECT MANAGEMENT BY KINZA IRSHAD

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KINZA IRSHAD

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Public Policy Instruments
Organization: Sui Northern Gas Pipelines Limited
1.0 Introduction of Organization
1.1 Nature of Organization
Sui Northern Gas Pipelines Limited is the largest integrated gas company serving more than 2.7
million consumers in north central Pakistan through an extensive network in Punjab and North
West frontier province. The company has over 43 years of experience in operation and
maintenance of high pressure gas transmission and distribution system. It also has expanded its
activities to undertake the planning, designing and construction of pipelines, for both itself and
other organization.
Sui Northern Gas Pipelines Limited in a region of the nation that has a rapidly growing demand
for natural gas and power generation due to significant industrial development.
1.2 Natural Gas
Natural gas, as the name implies, is found in gaseous form naturally, underground at varying depths
and geographical formations. It is one of the most abundant energy sources in Pakistan, and
because it is produced domestically, it is not subject to foreign disruptions of price or supply.
Comprised primarily of methane, natural gas is odorless and colorless when it comes out of the
ground. After impurities are removed, the natural gas is introduced into the pipeline system where
it is transported to the consumers.
Prior to distribution, a harmless odorant is added to the gas so any leakage can be easily detected
before an unsafe situation occurs. In addition to this "rotten egg" odor, natural gas has some built-
in safety features. It is lighter than air, so it will rise and dissipate into the atmosphere in the event
of a leak. And it has a very narrow combustion range, igniting only when mixed with air at a ratio
of between 4 and 14 percent. Any mixture higher or lower than that range and natural gas simply
won't burn. It also requires a very high degree of heat, at least 1200 degrees Fahrenheit, before it
will ignite.

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Once combustion occurs, natural gas is one of the cleanest-burning fuels available today. When it
is burned properly, the only emissions are carbon dioxide (which is what we exhale when we
breathe) and water vapor. Because of its clean-burning properties, natural gas has become the
environmental fuel of choice for many residential, commercial and industrial applications. Such
applications include: space heating, water heating, cooking, and as a fuel for fireplaces, vehicles,
power plants, commercial and industrial boilers, as well as commercial and industrial processing.
1.3 Establishment of OGRA
The federal government promulgated the natural gas regulatory authority ordinance in January
2000 based on the bill already passed by the national assembly in1999. Under the ordinance,
natural gas regulatory authority ordinance was established to regulator the transmission,
distribution and sale of natural gas, including determination of gas tariffs of the companies with
the prime objective of safeguarding the consumer's interest. later, federal government decided to
enlarge the scope of natural gas authority and consequently the oil & gas regulatory authority
ordinance was promulgated in march, 2002 which included the technical regulations of refineries,
oil storages, oil pipelines, oil marketing companies, compressed natural gas and liquefied
petroleum gas and natural gas regulatory authority ordinance was subsumed in oil & gas regulatory
authority. consequent upon oil & gas regulatory authority was establishment on 28th march, 2002
and with effect from march 15, 2003 federal government assigned to oil and gas regulation
authority for the regulation of liquefied petroleum gas and compressed natural gas sectors in the
country and has designated the oil & gas regulatory authority as an authority in place of the director
general (gas) of the ministry of petroleum and natural resources. ten main gas companies are
working in Pakistan under the oil & gas regulatory authority,
1. Sui Northern Gas Pipelines Limited.
2. Sui Southern Gas Company Limited.
3. Oil and Gas Development Company Limited (Such Gas Field).
4. Oil and Gas Development Company Limited (Bhal Syedan Field).
5. Oil and Gas Development Company Limited (Nandpur & Panjpir Fields).

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6. Central Power Generation Company Limited.
7. Engro Chemical Pakistan Limited.
8. Fuji Fertilizer Company Limited.
9. Pakistan Petroleum Limited.
10. Meri Gas Company Limited
1.4 Overview of organization
I am discussing about the sui Northern Gas Pipelines Limited, which is working in province Punjab
and north west province. Sui Northern Gas Pipelines Limited was incorporated as a private
company in June 1963 with the object of transmission and distribution of natural gas in Punjab,
North West frontier province, and the federal capital area. Sui Northern Gas Pipelines Limited was
later converted into a public limited company in January 1964 under the companies act 1913 (now
companies ordinance 1984), and is listed on three stock exchange of the company. The company
took over the existing Sui-Multan system (349 Kms of 16 inch and 129 Kms of 10 inch diameter
pipeline) from Pakistan industrial development corporation and Dhulian-Rawalpindi-Wah system
(132 Kms of 6 inch diameter pipeline) from Attock Oil Company limited. the company's
commercial operations commenced by selling an average 47 MMCFD gas in two regions viz.
Multan and Rawalpindi, serving a total number of 67 consumers. Sui Northern Gas Pipelines
Limited is the largest integrated gas company with an existing transmission system of 6,195 Kms
and distribution system of 46871 Kms. The company serves more than 2.7 million consumers in
north central Pakistan through an extensive network in Punjab and North West frontier province.
The company has over 43 years of experience and maintenance of high pressure gas transmission
and distribution system. it has also expanded its activities to undertake the planning, designing and
construction of pipelines, both for itself and other organizations.
1.5 Company Profile
Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company serving more
than 3.4 million consumers in North Central Pakistan through an extensive network in Punjab and
NWFP. The Company has over 46 years of experience in operation and maintenance of high-

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pressure gas transmission and distribution systems. It has also expanded its activities to undertake
the planning, designing and construction of pipelines, both for itself and other organizations.
SNGPL operates in a region of the nation that has a rapidly growing demand for natural gas and
power generation due to significant industrial development.
SNGPL was incorporated as a private limited Company in 1963 and converted into a public limited
company in January 1964 under the Companies Act 1913, now Companies Ordinance 1984, and
is listed on all the three Stock Exchanges of the Country.
SNGPL transmission system extends from Sui in Baluchistan to Peshawar in North West Frontier
Province (NWFP) comprising over 7,347 KM of Transmission System (Main lines & Loop lines).
The distribution activities covering 1,624 main towns along with adjoining villages in Punjab &
NWFP are organized through 8 regional offices. Distribution system consists of 67,449 KM of
pipeline.
SNGPL has 3,451,142 consumers comprising Commercial, Domestic, General Industry, Fertilizer,
and Power & Cement Sectors. Annual gas sales to these consumers were 584,895 MMCF worth
Rs. 168,933 million during Jul 08 - Jun 09.
1.6 Company Overview
 Regional Establishment
 Administrative Structure
 Organizational Structure
1.6.1 Regional Establishment
Sui Northern Gas Pipelines Limited was incorporated as a private company in June 1963 with the
object of transmission and distribution of natural gas in Punjab, North West frontier province, and
the federal capital area. Sui Northern As Pipelines Limited was later converted into a public limited
company in January 1964 under the companies act 1913 (now companies ordinance 1984), and is
listed on the three stock exchanges of the company.
In Sui Northern Gas Pipelines Limited, three main departments are working.
1. Transmission.
2. Distribution.

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3. Project.
1.6.1.1 Transmission
basically on operational out lift, the company handles the entire operation of a lengthy network of
high pressure gas lines comprising 6195 km in length, varying from 6 inch to 36 inch of diameter
in accordance with the mineral gas safety rules, oil and gas regulatory authority regulations and
international gas transmission industry's standards.
1.6.1.2 Distribution
The company's business strategy is to maximize sales of gas by entering in to new areas through
development/expansion of its infrastructure. in accordance with the policy of government of
Pakistan. The company has focused on country's economic revival by out reaching industries for
gas supply. During the last fiscal year, the company has provided a record number of 531 industrial
gas connections resulting in displacement of imported liquid fuels to save precious foreign
exchange.
The share of natural gas in Pakistan’s energy supply mix has increased from 41 % to 51“, whereas
that of oil has decreased from 43 % to 29 % during the last three years. The company has its gas
distribution network in 831 difference towns and villages of Punjab and North West frontier
province. As on June 30, 2006, the total length of distribution network of Sui Northern Gas
Pipelines Limited stands at 46964 km.
1.6.1.3 Project
Sui Northern Gas Pipelines Limited, as contractor, carried out construction of pipelines 8” dia,
20 km Badar gas field to Qadir pur field. Similarly an engineering, procurement and
construction. Contract was successfully executed from M/s. MOL Pakistan in the shape of 10”
dia, 8.75 km Makori-Kharrapa, and gas pipelines. During the year, the company successfully
completed various mega projects like gas supply to Murree, Kot Radha Kishan, Lilla town
(through CNG) and many other projects in difference regions of Punjab and the North West
frontier province.
The company has planned to undertake the project of gas supply t various southern districts of
north west frontier province (with estimated cost of rs.2.1 billion) viz Hangu, Karak, Lakhi,
Bannu, Dera Ismail Khan, Tank and southern district of Punjab (with estimated cost rs.3.7 billion)

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viz Hasilpur, Chishtian, Mandi, Bahawalnagar, Burewala, Pak Pattan, Haroonabad, Duniapur,
Karor Pakka, Vehari, Tibu Sultan, Khairpur tammawali, Yazman, Minchinabad and Fort Abbas
through construction of transmission lines of 315 km and 115 km, respectively and distribution
supply mains of 460 km.

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1.7 Administrative Structure
Policy guidelines and overall control is vested in the elected Board of Directors as provided for in
the Companies Ordinance 1984
1.8 Organizational structure
Head office of the company is situated in Lahore, chairman, managing director, other departmental
senior general managers and all directors offices are there. They control all the areas offices from
there. All the financial and non financial matters i.e. credit from bank casting budgeting, allocation
of funds matter, taxes, training to employees etc, are made under the supervision of the chief
financial officer. Company has the separate internal audit department. The audit department checks
that the work is being done according to the company policies, departmental procedures. The audit
department periodically conducts the audit of different departments but on the other hand the audit
department transfers the pre-audit function to the accounts department of limited payments. Chief
financial officer is being appointed according to the clause (xv) of “code of corporate governance”
by Securities and Exchange Commission of Pakistan. Audit committee is being established
according to the clause (xxx) of “code of corporate governance” by securities exchange
commission of Pakistan. These committees are established for the purpose of improving
transparency and discourse in financial reporting of companies and for improving their governance
to protect the interests of investors.
Board of directors is elected by the share holder of the company. The managing director and the
chief executive officer of the company is working under umbrella of board of directors. The board
of directors who made the decision for the entire satisfaction of the investors as well as the
consumer. Other the senior general managers are working under the deputy managing director who
directly reports to the managing director and chief executive officer.

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1.9 Regulations
Regulatory Regime comprises of:
Code of Corporate Governance.
Oil & Gas Regulatory Authority Ordinance (XVII of 2002) dated 28th March 2002 Natural
Gas Regulatory Authority (Licensing) Rules 2002 dated 26th February 2002. Natural Gas Tariff
Rules 2002 (Draft – 5 July 2002).
Such other Rules and Regulatireons which the Oil & Gas Regulatory Authority (OGRA) may
prescribe. Under the existing pricing and regulatory regimes, following operating conditions have
been laid down:
Allocation of gas from different sources is made by GOP while the wellhead prices are fixed
by the OGRA per Petroleum Concession Agreements/contracts.
Consumer selling price including sales to major consumers (i.e. power, fertilizers etc) are
notified by the GOP/OGRA.
SNGPL is guaranteed a rate of return @ 17.5% on its net fixed assets in operation (ROA) for
meeting financial charges, taxation and a reasonable return to the shareholders.
The prescribed price i.e. the price which the company is allowed to retain out of consumers
selling price to meet the covenanted rate of return, is determined by OGRA.
1.10 Statements
 Core Values
 Objectives
 Vision & Mission Statements
1.10.1 Core Value

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COMMITMENT
We are committed to our vision, mission, and to creating and delivering
stakeholder value.
COURTESY
We are courteous - with our customers, stakeholders and towards each other and
encourage open communication.
COMPETENCE
We are competent and strive to continuously develop and improve our skills and
business practices.
RESPONSIBILITY
We are responsible as individuals and as teams - for our work and our actions. We
welcome scrutiny, and we hold ourselves accountable.
INTEGRITY
We have integrity - as individuals and as teams - our decisions are characterized
by honesty and fairness.
1.10.2 Key Objectives
Sui northern gas pipelines limited committed for;
1. Enhancement of System Capacity
2. Expansion of Transmission and Distribution Network.
3. Increase in Gas Sales.
4. Rehabilitation of Transmission and Distribution Network.
5. Reduction in Unaccounted for Gas Losses.
6. Improvement in Profitability.
7. Improvements in Consumer Services.
8. Adoption of Information Technology.
9. Human Resource Development.

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10. Pursue Pipelines construction and Advisory Business
1.10.3 Vision Statement
To be the leading integrated natural gas provider in the region seeking to improve the quality of
life of our customers and achieve maximum benefit for our stakeholders by providing an
uninterrupted and environment friendly energy resource.
1.10.4 Mission Statement
A commitment to deliver natural gas to all door steps in our chosen areas through continuous
expansion of our network, by optimally employing technological, human and organizational
resources, best practices and high ethical standards.
1.11Board of Directors
Mian Misbah-ur-Rehman
Chairman
Mr. A. Rashid Lone Chief Executive/Managing Director
Mr. Dr. Faizullah Abbasi
Director
Mr. Mansoor Muzaffar Ali
Director
Mr. S. M. Asghar
Director
Mr. Muhammad Iqbal Awan
Director
Mr. A. Samad Dawood
Director

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Mr. Abdul Bari Khan
Director
Mr. Tariq Iqbal Khan
Director
Mian Raza Mansha
Director
Mr.Inam ur Rahman
Director
Malik Tahir Sarfraz
Director
Joint Secretary (Admin), Ministry of Petroleum & Natural Resources
Mr. Syed Zahir Ali Shah
Director

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Chapter 2
Business Operation

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2.0 Business Operation
2.1 Product Line
Although the company sales only natural gas. The main source through the Sui Northern Gas
Pipelines Limited is obtaining gas PPL (Pakistan Petroleum Limited). However, if we think there
are two types of gas.
1. Liquid Petroleum Gas (LPG)
2. Compressed Natural Gas (CNG)
There details are as under;
2.1.1 Liquid Petroleum Gas (LPG)
Liquid petroleum gas it is used for filling cylinders and it is liquid from gas. Before filling the
cylinders, the gas temperature is reduced and then fills the cylinders, which used for domestic
purpose, welding purpose etc.
2.1.2 Compressed Natural Gas (CNG)
Now a day every one knows about this type of gas. It is using in vehicles; it is filled through
compressed function and fill in specific pressure.
2.2 Main offices of Sui Northern Gas Pipelines Limited
Head office Lahore
Gas house
21 Kashmir road,
P.O.boxno.56,
Lahore- 54000, Pakistan.
Ph: (+92-42) 99080000 & 99082000
Facsimile: (+92-42) 99201369 & 99201302

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Website: www.sngpl.com.pk
Faisalabad
Sargodha road.
Ph: 041-9210033-35
Fax: 041-9210037
Islamabad
28-30 sector 1-9, industrial area.
Ph: 051-9257710-19
Fax: 055-9257770
Lahore
21- industrial area
Gurumangat road, gulberg III
Ph: 042-99263361-80
Fax: 042-99263400
Multan
Piran ghaib road.
Ph: 061-9220081-86
Fax: 061-9220090

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2.3 Core Business
2.3.1 Gas Sources

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2.3.2 Transmission System
DESCRIPTION Total (MMCF) Avg/Day (MMCF)
BALOCHISTAN
Sui(SML) 139,795 383
Sui(SUL) 10,160 27.84
Pirkoh+Loti 15,664 42.92
TOTAL 165,619 453.76
PUNJAB
Dhodak 2,120 5.81
Meyal 518 1.42
Dhurnal 149 0.41
Dakhni 17,279 47.33
Adhi 14,355 39.33
Bhanghali 54 0.15
Sadqal 723 2
Ratana 366 1
Pariwali 5,166 14.15
Pindori 653 1.78
Dhullian 692 1.9
Salsabil 13,807 37.82
TOTAL 55,882 153.1
Khyber Pakhtunkhwa
Chanda 2,608 7.14

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 Year Wise Increase in Transmission System
 Transmission Network Map
 Segment-Wise Transmission Break-up
 Province-Wise Transmission Breakup
Mela 5,775 15.82
Makori 8,865 24.3
Gurguri 12,949 35.5
TOTAL 30,197 82.76
SINDH
Hassan 5,414 14.83
Zamzama 68,735 188.32
Sawan 89,453 245.1
Tajjal 4,027 11.03
Qadirpur 175,589 481
Qadirpur(RAW GAS) 15,247 41.77
Qadirpur (DEHYDRATED) 8,345 22.86
Kandhkot 21,464 58.8
Chachar 3,401 9.32
Rehmat 4,513 12.36
Badar 5,272 14.44
TOTAL 401,460 1,100
GRAND TOTAL 653,157 1,789

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2.3.2.1 Year Wise Increase in Transmission System
Year Kms
% Age Increase Over
Previous Year
% Age Increase from
1993
1993 3,311 - -
1994 3,614 9.15% 9%
1995 3,865 6.95% 17%
1996 4,243 9.78% 28%
1997 4,687 10.46% 42%
1998 4,920 4.97% 49%
1999 5,112 3.90% 54%
2000 5,217 2.05% 57%
2001 5,122 -1.82% 55%
2002 5,405 5.53% 63%
2003 5,759 6.55% 73%
2004 5,776 0.30% 74%
2005 6,121 5.97% 84%
2006 6,195 1.20% 87%
2007 6,625 6.94% 100%
2008 7,016 5.90% 112%
2009 7,347 4.50% 122%

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2.3.3 Distribution System
 Gas Distribution Capacity
 Distribution Network
2.3.3.1 Gas Distribution Capacity
The Distribution System Capacity as on 31.12.2009 is as follow.
SR. No. REGION
CAPACITY (MMCFD)
TOTAL CONTRACTED AVAILABLE
1 Bahawalpur 306 236 70
2 Multan 610 471 139
3 Faisalabad 530 408 122
4 Lahore 909 885 24

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5 Gujranwala 316 258 58
6 Islamabad 381 223 158
7 Peshawar 237 172 65
8 Abbottabad 150 134 16
TOTAL 3439 2787 652
The Distribution System Capacity as on 30.06.2009 is as follow.
SR. No. REGION
CAPACITY (MMCFD)
TOTAL CONTRACTED AVAILABLE
1 Bahawalpur 205 234 -29
2 Multan 596 465 131
3 Faisalabad 514 396 118
4 Lahore 821 865 -44
5 Gujranwala 300 240 60
6 Islamabad 370 213.5 156.5
7 Peshawar 229 166 63
8 Abbottabad 148 131.6 16.4
TOTAL 3183 2711.10 471.90
2.3.11 Bill types
There are different four types of bill.

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1) Normal Bill
2) Provisional Bill
3) Minimum Bill
4) Estimated Bill
2.3.11.1 Normal Bill
Bill is issued as per meter reading supplied by the meter reader and calculated as per rates provided
by govt. for all categories of consumer. Pressure factor is applied for the calculation of volume of
gas consumed for commercial consumers, while pressure, temperature & super compressibility
factor is also applied to work out volume of gas consumed by Industrial / bulk supply consumers.
2.3.11.2 Provisional bill
When meter reading could not be recorded due to following reasons, a Provisional Bill is issued
to the consumer.
1) Index glass dirty/misty.
2) Water inside meter.
3) Meter covered with dust.
4) Meter covered with bushes.
5) Meter under rain water.
6) Meter installed above normal height.
7) Meter position is not approachable.
8) Meter locked inside the premises.
9) Dog at site.
10) Not allowed by the consumer.
11) Premises not found.
These 11 reasons are recorded by meter reader and reflected on your monthly bill.
Provisional bill amount is 110% of the previous bill.
Provisional bill amount is adjusted in next normal bill when proper reading is provided.
2.3.11.3 Minimum bill

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Bill is charged as minimum due to zero consumption of gas. Bill is charged as minimum due to
the gas consumption below the minimum consumption limit as per Govt. notification of minimum
charges as defined below (without Meter Rent/GST):
2.3.11.4 Estimated bill
Estimated Bill is charged due to any violation of Gas Connection Rules & Regulation such as theft
or if meter is sticky (Out of Order) and is unable to record the gas passing through it.
Bill is charged on seasonal annual consumption. In this case average of previous year's seasonal
consumption is used.
There are two types of seasonal average:
Summer Average = Average of ( Mar to Nov).
Winter Average =Average of (Dec to Feb).

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Chapter 3
Structure of Finance Department

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3.1 Structure of finance department
In the finance department, about 1331 employees are working under the supervision of chief
financial officer and senior general manager finance. In the distribution office Faisalabad,
employees are working under the senior area accountant and senior billing officer. The corporate
structure of finance department to ensure accurate, timely, efficient and effective discharge of
accounting functions. The depart; mental head is chief financial officer. General Manager
Accounts and general manager finance are being working under the umbrella of chief financial
officer. Down the line duties and responsibilities are assigned to chief accountant, deputy chief
accountants, senior accountants, sectional head, executive and support staff. The structure chart of
finance department is given as:
3.1.2 Finance & accounts functions
The finance and accounts department is primarily responsible to keep proper books of accounts
with respect to:
 All sums of money received and expended by the company and the matters in respect of
which the receipt and expenditures takes place.
 All sales and purchases of goods by the company.
 All assets of the company.
 All liabilities of the company.
In pursuit of the achievement of corporate objectives and targets fixed, the accounts department
transacts all the activities of the company in the financial terms, record it with accuracy, manage
to provide requisite funds at minimum cost, plae the surplus funds with the secured financial
institutions in accordance with the approved policies of the board of directors and on overall basis
acts as financial controller by establishing effective and budgetary controls.
3.1.3 Organization
The corporate structure of sui northern gas pipelines limited provides for establishment of finance
and accounts department to ensure accurate, timely. Efficient and effective discharge of accounting
functions. The department is headed by chief financial officer. He is assisted by the general
manager (finance) and general manager (accounts). Down line duties and responsibilities have

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been assigned to chief accountants, deputy chief accountants, senior accountants, section heads
and the support staff.
3.1.3 Accounting for areas
3.1.3.1 Introduction
In order to facilitate smooth operation of the area offices imp rest accounts are approved by the
head office for making payments to contractors, suppliers, and other outside agencies and for staff
claims. The cheques sent by head office are deposited in bank account which is operated jointly
by the imp rest holder (area general manager) and the senior area accountant. All payments in the
area are made out of imp rests on the basis of payments vouchers duly approved by the area general
manager and signed by the area accountant. Each voucher is serially numbered and entered in the
imp rest cash book. Re-imbursement from head office is claimed on the basis of voucher entered
in the imp rest cash book showing the accounts heads/job numbers and the amounts paid. Similarly
receipts are recorded through credit vouchers which are also entered in the imp rest cash book. The
area accountant is also responsible to monitor gas bill collection and its reconciliation, receive
amounts from consumers on account of securities, and cost sharing jobs and relocation of service
line jobs. The request for job cost numbers for cost sharing cases are also processed by the
respective area accountants.
Functions and accounting procedures
 Fixation of imprest lmit _ new areas
 Enhancement of imprest limited
 Approval of imprest
 Imprest payment at areas
 Work orders/contracts
 Supplier’s payments
 Contractor’s payments
 Receipts from outside parties
 Completion of cash book
 Phusical checking of cash and monitoring of bank accounts
 Gas bills collection and security accounts reconciliation

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 Issuance of job numbers for cost sharing works
 Pre-audit
 Tax deduction
 Books and records
3.1.3.2 Fixation of imprest limit _ new areas
The limit for new imprest is fixed taking into account the future estimated volume of expenses.
The basis considered for this purpose is in transit period / amount and reimbursement period, which
is normallu one third of total expenses in month.
3.1.3.3 Enhancement of imprest limited
The trend of expenses incerred at the area during last one year / 6 months is considered taking into
account the following data for the said period which represent the total existing limit:
 Expenses incurred
 Bank balance
 Cash in hand
 Outstanding advances
 In transit
3.1.3.4 Approval if imprest
On the request of area accounts, the approval from chief financial officer is obtained and new bank
account is opened with the signatures of competent authority as approved by the board of directors.
For enhancement of imprest, limited the justification on the basis of required data is prepared and
if found feasible the approval from chief financial officer is obtained and this increase is
continuously monitored.
3.1.3.5 Imprest payments at areas
Payments out of imprest are to be made by the area accountants to contractors, suppliers and for
other services and to staff after approval of the competent authority.
3.1.3.6 Work orderd/contractors
Payments are made to contractors for laying distribution network, civil works, transmission lines,
haulage works and for miscellaneous activities. Distribution contractors for performing various

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activities are approved by the company for each area from time to time. Rates for each activity are
also approved / revised by the company after every two years. Works orders are issued by the area
general manager assigning work to each contractor. Copies of work orders are sent to accounts
department.
In other departments, like projects, transmission and civil contracts / work orders are awarded on
the basis of competitive bidding according to the approved procedures and copies sent to accounts
department.
Similarly contracts for haulage of goods and for hiring of equipment are awarded on annual basis
by purchase & store department according to the purchase & stores procedures and copies sent to
accounts.
 Check that the contract / work order has been approved by the competent authority.
 Check computation and keep it in an area-wise contractors file.
3.1.3.7 Supplier’s payments
Payment to suppliers against local purchase orders should be checked with the supporting
documents i.e. Local purchase order and receiving statement etc. A monthly bill paid register
should be submitted to head office (bills section) duly reconciled with the payments debited to
sundry creditors account in the imprest cash book.
Contractor payments
Above payments dully approved by the competent authority will be made after due checking of
supporting documents and included in job cost columns of imprest cash book.
Check that the supporting documents attached to the vouchers/claims are in agreement with the
claim amount and cash memos attached, if any are proper.
Receipts from outside parties
Receipts on accounts of cost sharing charges, service line relocation charges etc. recorded through
credit vouchers showing the appropriate account head. It will be ensured that all receipt in the
form of cheques, demand draft, pay orders and cash received on company account will be

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deposited into bank on daily basis. The receipt if any collected after banking hours is to be
deposited in company account on next working day.
Completion of cash book
 All payments vouchers and credit vouchers must be serially numbered accurately and
entered in the imprest cash book. A data control slip should be completed and attached to
the imprest cash book sent to head office for re-imbursement.
 Before sending the imprest cash book for re-imbursement the computations and balances
carried forwarded to next sheets must be confirmed. The imprest cash book must be signed
by area general manager and the senior area accountant.
3.1.3.8 Physical checking of cash and monitoring of bank accounts
 The account should check the cash physically on daily basis at the end of each day. Cash
physically checked should be recorded in a register kept for this purpose and signed by the
cashier and accountant showing the denomination of notes.
 Duplicate keys for the cash chest will be held and one each will be retained by the cashier
and the accountant/incharge.
 The area accountant must monitor the bank account on continuous basis so that the balance
is kept reconciled. The area accountant sends bank reconciliation by 7th of each month
with amount appearing in the cash book.
 The area accountant should monitor the regular receipt of bank statements for checking
and pointing out discrepancies e.g. time barred cheques; bank charges or some other receipt
not recorded in the imprest cash book.
3.1.3.9 Gas bills collection and security accounts reconciliation
 Company has authorized various banks to collect gas bills. As per standing instructions all
banks are required to transfer all collections to company’s main collection accounts on
daily basis. The area accountant is required to obtain bank statements for each accounts on
monthly basis and prepare proper reconciliation so as to ensure that all funds collected on
behalf of the company have been transferred as per instructions. All outstanding items will
be pursued for final settlement.

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 The reconciliation of the gas sales collection account will be submitted to head office by
15th of each month.
 The area accounts received amounts from the prospective consumers and the connected
consumers under the following heads of accounts.
 Gas connection application fee for domestic and commercial connections.
 Security for domestic, industrial, domestic and special domestic consumers.
 Service line charges.
 Additional security as and when due.
 Re-connection fee.
 A separate security account for depositing the amount collected in connection with gas
connections and other heads as stated above has also been opened in the area. The
accountant is required to collect bank statements for each account on monthly basis and
prepare reconciliation. All outstanding items will pursue for settlement.

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CHAPTER NO.4
SWOT ANALYSIS

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4.1 SWOT ANALYSIS
4.1.1 Internal and External factors.
The Internal component of Analysis is concerned with the basic strengths and
weaknesses of the organization. Thus, it depicts the internal environment of the
company. The strengths of the company may be its financial or human resources,
processes, operational methods, marketing strategies, segmentation techniques or
any expertise that the company may feel as its core competencies. Contrary to
this, any discrepancies in these factors, at the same time, may become the
weaknesses of the company. Hence, it is the internal environment of the company
that shapes its business strategies and provides direction to survive in the
marketplace.
The external component deals with the factors that the company faces in its
external competitive environment. These factors are categorized as opportunities
available for the company in the market place and the threats strained by its
competitors. The opportunities of the company may by its ability to satisfy the
ever arising needs of its customers better than its competitors, new available
markets, room for setting new operations, falling of barriers due to globalization
trend etc. If a firm fails to avail the opportunities as soon as they arrive, these
opportunities become threats for that company. This is because you r competitors
will avail that opportunity in their first attempt and attain first mover advantage
over you.
SWOT Analysis is a popular technique used to analyze some company’s present
business situation. It provides us with an overview of company’s major strengths
and its critical weaknesses. The external opportunities and threats that the
company faces in the external environment are also highlighted in this approach.

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4.2 SWOT Analysis
4.2.1 Strengths:
 Government Organization
 High Cumulative Customer retention rate since the start of operations
 Sustained growth rate of annual sales turnover.
 Consistent Quality
 Vertically integrated.
 Excellent market image in the local and international market.
 Highly qualified management.
 Adequate financial resources.
 Adopting information technology.
 Skilled Labor.
 Broad and motivational vision.
4.2.2 Weaknesses:
 High employee turnover
 Low production capacity.
 De-motivated Staff.
 Less promotional activities.
 Non-Corporative culture.
 Insufficient benefits for the employees.
 Stereotype machinery for processing.
 Communicational gap among different departments.
 No Proper Training to employees
 Manual Work
 Mineral Stocks

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4.2.3 Opportunities:
 Can expand its division such as finding new minerals
 Can reduce the cost by proper utilization of resources.
 Can hire well-educated and experienced staff.
4.2.4 Threats:
 New plans to take gas from outside the country
 Buyer need and demand changes.
 Political instability.
 Changing geopolitical situation.
 Change of government policies.
 Less stocks of minerals

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CHAPTER NO.5
CONCLUSION AND RECOMMENDATION

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5.1 CONCLUSION
The company earned Rs 1,730,240 thousand pre tax profit, which is decrease than the last year.
The revenue from sales was Rs 160,714,737 thousands during the year, which is also decrease than
the previous year. This year the company has taken a tax refund of Rs 799,704 thousands from the
tax authority on different accounts. Company’s current ratio also decreased 1.19 to 0.82 further
more the company has tried its best optimize utilization of all its available resources to the
maximum level resulting in improvement of the inventory turnover ration from 218.48 To 231.27
the company need to be taken effective measures to recover its old situation and improve its
financial position.
5.2 RECOMMENDATIONS
Before joining this organization I know a little about the organization work, its working system
and environment, so I learned a lot from this experience. Based on my experience & observation
regarding the operations and policies of organization, there are some recommendations which
include short term as well as long term issues for the improvement.
5.2.1 Assess the Performance of employees
There is no efficient method introduced by organization for his assessment of performance of
employees. Promotions are completely relying on higher management like managers .’s there can
be some sort of favoritism. So to avoid all this, there should be a proper method to judge the
employees.
5.2.2 Improve Information Technology System
Sui Gas Northern Ltd. should immediately improve its Information Technology System. The soft
wares currently in use should be made error free as it is the need of the hour.
5.2.3 Computerized Accounting System
As far as accounting is concerned, although the entire system is computerized, but there still
involves lots of paperwork. So this should be minimized b acquiring more advanced accounting
software
5.2.4 Job Rotation

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There is no rotation of employees within departments and cross departments. So the top
management should immediately start thinking in terms of rotating the employees in various
departments, as this transforms work force into human capital.
5.2.5 Distribute Work Equally
Management should distribute work equally among different employees. Some of the employees
are overburdened while some sections are overstaffed.
5.2.6 Improve its Website
Sui Gas Northern Ltd needs to improve its website. More information relating to financial
performance and sale of the organization should be available on the website.
5.2.7 Evolve Management Policy
Sui Gas Northern Ltd should evolve a very serious management policy to attract multi national
corporations as its clients. This action, if actualized, would not only prove to be highly profit
generating, but it would also contribute a lot towards Gohar Textile image building.
5.2.8 Advertise
One of the most pressing needs of the time is to advertise Sui Gas Northern Ltd in the electronic
media. Sui Gas Northern Ltd has not, till date, employed advertisement in electronic media as a
full fledge marketing tool. I think it is high time that organization does this
5.2.9 Market Survey
The management should make the market survey time to time to get more and latest information
about the market factors like the price, demand, current consumer trends etc.

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Reference and source used
The following sources are used for preparing this internship report
1- Annual Report 2007, 2008, 2009
2- Monthly report of financial year 2007,2008, 2009
3- Sui Northern Gas website (www.sngpl.com.pk)
4- Staff Members of Sui Gas Northern