Chapters ssgc

S U I S O U T H E R N G A S C O M P A N Y I N T E R N S H I P R E P O R T 2 0 1 4 Page 1

Chapter # 01
Introduction to SSGC

INTRODUCTION TO SSGC
INTRODUCTION:
Sui Southern Gas Company (SSGC) is Pakistan's leading integrated gas Company.
The company is engaged in the business of transmission and distribution of natural
gas besides construction of high pressure transmission and low pressure distribution
systems.
SSGCL transmission system extends from Sui in Baluchistan to Karachi in Sindh
comprising over 3,200 KM of high pressure pipeline ranging from 12 - 24" in
diameter. The distribution activities covering over 1200 towns in the Sindh and
Baluchistan are organized through its regional offices. An average of about 378,468
million cubic feet (MMCF) gas was sold in 2008-09 to over 2.040 million (industrial
3,448, commercial 22,192and domestic 2,014,827 consumers) in these regions
through a distribution network of over 31,877 Km. The company also owns and
operates the only gas meter manufacturing plant in the country, having an annual
production capacity of over 550,150 meters.1
The Company has an authorized capital of Rs. 10 billion of which Rs 6.7117 billion is
issued and fully paid up. The Government owns the majority of the shares which is
presently over 70%.2
The Company is managed by an autonomous Board of Directors for policy
guidelines and overall control. Presently, SSGC's Board comprises of 14 members.
The Managing Director/Chief Executive is nominee of GOP and has been delegated
with such powers by the Board of Directors as are necessary to effective conduct the
business of the company.

SSGC at a Glance:
The Company in its present shape was formed on March 30, 1989 following a series
of mergers of three pioneering companies, namely Sui Gas Transmission Company
Limited, Karachi Gas Company Limited and Indus Gas Company Limited.
Sui Gas Transmission Company Limited was formed in 1954 with the primary
responsibility of gas purification at the Sui field in Balochistan and its transmission to
the consumption centres at Karachi. Two distribution companies were established in
1955 and were responsible for the distribution of gas to consumers in Karachi and in
other towns along the route of the transmission pipeline between Sui and Karachi. In
1985, these two distribution companies were merged to form Southern Gas
Company Limited and later, in 1989, Southern Gas Company Limited and Sui Gas
Transmission Company Limited were merged to form the Sui Southern Gas
Company Limited.
Today, half a century of professionalism and progress has made the SSGC one of
the largest integrated natural gas transmission and distribution companies in
Pakistan, serving the entire Southern region of the country, comprising the provinces
of Sindh and Balochistan.3
 Core Business
The main activity of the company is transmission and distribution of gas in Sindh and
Baluchistan

SSGC’s VISION
To be a model utility, providing quality service by maintaining a high level of ethical
and professional standards and through the optimum use of resources.
SSGC’s MISSION
To meet the energy requirements of customers through reliable, environment-friendly
and sustainable supply of natural gas, while conducting company business
professionally, efficiently, ethically and with responsibility to all our stakeholders,
community and the nation.
CORE VALUES
Integrity:
Keep Company's Interest above self. Acts in ethical manner. Promote
ethical business environment. Take effective actions if observers
unethical behavior or situation. Seen & known to be honest. Lives
within means. Intellectually hones.
Excellence:
Makes positive contribution towards the achievement of SSGC's
Vision. Strives for Continuous improvement. Respond effectively to
customer needs. Takes timely and Quality decisions.
Teamwork:
Builds strong relationships within across functions. Works well with
all type of Peoples and corporate with others. Solicits and share
ideas/best practice with others. Supports the achievements of
Company/team goals. Contributes to team effectiveness using people's different
skills and styles. Arrives at constructive solutions while maintaining Positive working
relationships. Demonstrates sensitivity.

Transparency:
Promotes open environment. Displays openness and consistency in
applying policies & Procedures. Respects dissent and resolves
conflicts fairly.
Creativity:
Comes up with new ideas. Encourages innovation. Promotes
modified approaches. Convert Ideas into actions.
Responsibility to Stakeholders:
Stays abreast of change in operating environment that impacts our
business (i.e. markets, competitors, Technology, customers,
suppliers, employees, regulatory, political and public). Create
solutions to make Customer needs. Develops colleagues and team members to
improve their skills and performance. Ensure Optimum utilization of resources.
Balances short term and long term priorities to maximize on results. Ensures
compliance of law.4
COMPANY’S OBJECTIVE
The Company aims to supply natural gas wherever there is sufficient load to justify
the cost of infrastructure. In many places the gas network is being expanded to meet
economic and social requirements through active funding support from the Federal
and Provincial governments. In 2003, the Company launched a comprehensive five-
year gas network development and expansion
 Plan to connect hundreds of small towns and villages in remote areas of
Sindh and Balochistan, which currently are deprived of piped natural gas.
 Every year, the Company adds nearly 75,000 new customers (industrial,
commercial & domestic) to its customer base and lays hundreds of kilometres.
Transmission pipelines and distribution network and installs other facilities such
as metering/ billing stations in its system using its staff of technically qualified and
skilled personnel.
4 Annual report of SSGC

FUTURE OUTLOOK
The Company is pursuing an ambitious five year development and expansion plan
estimated at Rs 42.9 billion. Key objectives of the strategic plan for the next five
years (2005-06 to 2009-10) are the following:
 Expansion of transmission network by 608 Kms from 2,942 km in 2005 to
3,550 km by 2010, enhancing capacity from 1,300 MMCFD in 2005 to 1,700
MMCFD by 2010.
 Expansion of distribution network and supply mains by 5,236 km from 25,764
km in 2005 to 31,000 km by 2010 connecting 600 new towns and villages in
Sindh and Balochistan
 Enhancement of gas supply to power plants, industrial and commercial
sectors including supply of gas to previously deprived areas in the domestic
sector.
 Increase of the customer base from nearly 1.8 million to 2.2 million by adding
447,000 new customers to the Company’s system.
 Consistent appreciation in shareholder’s value by increasing the company’s
asset base and significant improvement in productivity and efficiency.
 Focus on improved, friendly and efficient customer services under the vision
of “Service with a smile”;
 Establishment of 16 fully automated (additional 8 in progress) on line
customer facilitation centres;
 Multiple bill payment options and channels (ATM, Call Centres, ORIX POS,
Internet, Drop Boxes, NADRA-Kiosk);
 Latest technology digital prepaid meters with improvement of call centres to
include an online customer information system.
 Revamp the current business processes, to improve company efficiency and
implement ERP, CIS, GIS and the best business policies for ISO 9000
certification;

 Increase surveillance and introduce an automated emergency response
system (ERS) and SCADA for the security of company assets including the
transmission and distribution networks;
 Improve the quality of human resource through career planning, training of
employees and development of management;
 Implement environment management system, occupational health and safety
system as required under Certification ISO 14001 and OHSAS 18001
standards;
 Set up Enterprise Information System (EIS) in all areas of business using
state of the art technology to make SSGC the “Most IT Enabled Company;”
 Human resource development and empowerment of employees through
career planning and continuous management/vocational training.
 Community support services and corporate communication initiatives to meet
the national and social responsibilities, as a good corporate citizen.5
5 www.ssgc.com.pk/outlook

RESEARCH METHODOLOGY
Methodology is a major component of any research report which enables to
choose the right techniques and tools for the collection of data and analysis of
data in order to get the accurate results. It is vital element for research and
provides in-depth details of chosen strategies and tools for gathering and
analysing data.
The aim of this topic is to emphasize and validate the methods and line of actions used in
conducting this report. The topic includes the explanation of various stages of data
collection methods used in obtaining primary and secondary data.
Data Collection Methods:
Data collection is the central part of any research, which requires an effective planning.
There are two generic classification of data on which research project design depends,
one is primary, and the next one is secondary, so I have chosen the strategy to gather data
from the previous work done (secondary data) and gathered (Primary) data myself, which
is beneficial for this project, and was not available.
Primary Data Collection
Primary data is that kind of data which is required to research purpose, but not collected
before, so that first-hand data which collected by self called primary data.
Primary data can be collected by one, or combination of more than one method, such as
observation, experimentation, interviews and questionnaires. Whereas choosing of
method to collect the primary data depend on the nature of research report. I chooses the
method of primary data collection for this report, are the combination of in-depth
interviews and questionnaire.
Data Collection
Method
Primary Data Secondary Data

Secondary Data Collection
Secondary method of data collection includes the piece of work which is being already
used for some other purpose or work. In secondary data collection we have the facility to
use data which may be available on desk. Major sources of secondary data collection used
in this research report, collected through the internal sources of SSGC, which was in the
form of printed material, that includes reports of sale, price lists, consumption and market
share, segment wise data, operation and finance documents, and others which required
time to time, another sources for data collection was external sources, like public
information and governmental statistics figures, news, electronic media, and technology,
like search engines electronics journals, books, and websites.
Limitation of the Study
Following limitations hamper research report work:
 Time constraints
 Limited resources
 Limited access of data, and instrument in SSGC House.
 Confidential information (ambiguity of answers)
 Language barriers
 Inaccuracy in response

Chapter # 02
Organization Structure

ORGANIZATIONAL STRUCTURE
The Company is organized into six functional divisions -Transmission, Distribution,
Commercial, Engineering Services, Management Services, and Finance. Each
division is headed by a Senior General Manager (SGM) assisted by a team of
professional staff, with the exception of Finance, which is headed by the Chief
Financial Officer (CFO). Policy matters relating to the natural gas sector are handled
by the GOP. OGRA is responsible for regulation, pricing, revenue determination and
compliance to service standards. The Board of Directors has the overall
responsibility for the management and control over the Company. The management
enjoys operational autonomy. The major portion of the work force consists of
technically qualified and skilled personnel.

Hierarchy of Management

Chapter # 03
OVERVIEW OF THE FINANCE
DEPARTMENT

OVERVIEW OF THE FINANCE DEPARTMENT
FINANCE
Finance
Payroll
Insurance
Payments
Gas Purchase
Transmission
Project
Treasury
Cash & Bank
Loans
Investments
Gas Sales
Taxation
Revenue
Control
Accounts
Cost&
Revenue
Budget
Fixed Assets
MIS
Distribution
System
Financial
Feasibilities

MAJOR ACCOUNTING POLICIES
Property, Plant &Equipments:
 Assets are not revalued and historical cost is taken into account. Property, plant
and equipment except freehold land, leasehold land and capital work in progress
are stated at cost less accumulated depreciation. Freehold land, leasehold land
and capital work in progress are stated at cost
 Depreciation on compressor, transmission lines and other operating assets is
calculated under the straight line method over their estimated remaining useful
lives. It is charged from the dates these projects are available for intended use
upto the date these are disposed off.
Stock-in-trade:
 The stock in trade comprises of Gas in pipelines and Meter manufacturing
division.
 Stock of Gas in transmission pipelines is valued at lower of cost determined
under the weighted average basis and net realizable value whereas the materials
for meter manufacturing division is valued at lower of moving average cost and
net realizable value.
 Net realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and the estimated costs
necessary to make the sale.
Stores, Spares and Loose Tools:
 These are valued at cost determined under the moving average basis less
impairment losses, if any. Goods in transit are valued at cost incurred up to
the balance sheet date
Trade Debts:
 Trade debts are carried at cost less provision for doubtful debts, if any. Balances
considered bad and irrecoverable are written off when identified.

Trade and Other Payables:
 Liabilities for trade and other payables are carried at cost which is the fair value
of the consideration to be paid in the future for goods and services received.
Deferred Credit:
 Amount received from customers and the government as contributions and
grants for providing the service connections, extention of gas mains, laying of
transmission lines, etc are deferred and are recognized in the profit and loss
account over the useful life of the related assets.
Revenue Recognition:
 Revenue from Gas sales is recognized on the basis of gas supplied to customers
at rates periodically announced by the Oil and Gas Regulatory Authority (OGRA).
The meter rental is recognized monthly at specified rates for various categories of
customers on an accrual basis whereas the sale of meters and gas condensate is
recognized on dispatch to the customers.
 Deferred credit income is amortised to the profit and loss account over the useful
life of the related assets. Dividend income on equity investments is recorded on
accrual basis.
 However the company is required to earn a minimum annual return before
taxation of 17% per annum o the net average operating fixed assets (net of
deferred credit) for the year. Income earned in excess or short of the above
guaranteed return is payable to or recoverable from the Government of Pakistan
and is adjusted from or to the gas development surcharge payable to or
receivable from GoP.

Long Term Deposit:
 Long Term deposits consist of security deposits from Gas customers and gas
contractors.
 Gas customers’ deposits represent Gas supply deposits based on an estimate
of three months consumption of gas sales to industrial and commercial
customers while deposits from domestic customers are based on the rates
fixed by the
 Government of Pakistan. These deposits are repayable and adjustable on the
disconnection of gas supply.
 Security deposits from contractors are free of mark-up and refundable on the
cancellation of contract.6
6 Accounting documents of SSGC

AREAS OF WORKING
I sought opportunity to join SSGC to upgrade my skills in multi-dimensional approach
to the section of the Finance Department. Whatever I attained there is elaborated as
under:
 General Ledger
 Fixed Asset and Capital Budget
 Gas Purchase
 Bid Bond
 Inventory Accounting
 Cost and Revenue Budget

Chapter # 04
General Ledger

GENERAL LEDGER SECTION
Function:
 Processing of all journal voucher (JV) from different section and location in
finance department.
 Resolution of queries raised by the ERP system during JV processing.
 Posting of all financial modules to general ledger.
 Processing of reports from oracle on monthly, quarterly, yearly basis for top
management.
 Processing of reports from oracle on monthly, quarterly, yearly basis for oil
and gas regulatory authority (OGRA).
Purpose:
 To maintain proper and accurate, books of accounts.
 To facilitate and co-ordinate the annual audit.
 To comply with the policies and the procedure notified by OGRA from time to
time.
 To comply with the policies and the procedure notified by Security and
Exchange Commission of Pakistan (SECP).
 To report the results to board of directors and share holders of the company.7
General Ledger- Reports:
With the help of Oracle Financial Application general ledger reports can be viewed.
General Ledger Reports facilitate tracing back each transaction to the original
source. These reports list beginning and ending account balances and all journal
entry lines affecting each account balance. The report provides detailed information
on each journal entry line including source, category and date. Through this option
the journal details can be reviewed and checked for errors.
7 Introduction by Muhammad Saleemmemon (Manager – GL)

For generating general ledger reports we first need submit a request. We can either
submit a single request or a request set.

After selecting the type of request, we need to enter the type of report that we
want to view. In order to run the request, first we need to type in the name of the
report that we want to generate. Oracle GL provides us with a number of options. For
example we can view a detail Trial Balance detail report or an account analysis
Reports etc.
 Accounts Analysis Reports:
These reports list the accumulated balances of a range of Accounting Flex fields
and all journal entries that affect that range. Detailed information is provided for
each journal entry line which includes the source, batch name, and description.
 Trial Balance Reports:
Use trial balance reports to review account balances and activity in summary or
detail.
Journal Report:
These reports print journal entry batches and include journal entry subtotals, and
descriptions and reference information for each journal entry line. You can report
on foreign currency, posted, non-posted or error journal entries and report on a
specific batch or on journal entries from a specific source.
Reports can be generated in clusters and groups by entering any of the following:
 Company

 Function
 Location
 Organization Unit
 Project
After selecting the type of report that we want view, we need to enter the details of
the projects that we want to view. Details like segment, Account type, Period
Currency etc.
As soon as the request is submitted, Oracle application starts processing the given
request and as a result of that it provides the user with various options which
includes viewing the output or details of the requests. It also provides the option of
diagnostics and holding and canceling of a request.

The Screen shot below shows the format of the generated reports.
By selecting the view detail button, the user can easily view the details of the project
which includes the date, submission date, completion date, status etc8
8 From Oraclesystemof SSGC

Chapter # 05
Fixed Asset
&
Capital Budget

FIXED ASSETS & CAPITAL BUDGET PROCESS
FUNCTION
To maintain and control the fixed asset of the company
Working of Fixed Asset:
Budget Proposal
The budget section of finance department prepares capital expenditure budgets
annually for all the department of SSGCL. Whenever a budget is to be prepared for
any department, the budget section notifies the department to prepare list of assets
required by them & forward it to the budget section. On receiving the requirements,
the budget team examines it & discusses all particulars with the related head of
department & staff giving special consideration to the justification of fixed asset
requirement & funds available with the company.
At this stage, the budget team may reduce the requirements of fixed assets of the
department, which may be considered to be necessary as that may be defined to
latter period.
The budget [in the form of budget proposal] is now sent to GM & SGM for its
approval/changes which may be made by them & finally to the M.D for its approval
the case of transmission project which exceeds Rs.100 million approval is then
sought from the government by filing PC-1 form & after its approval , same
procedure is followed for others.
When the budgets for all the departments have been finalized and approved by MD,
then agenda is prepared by budget section, which is reviewed by finance committee,
the board of directors’ grants approval to the agenda and now the budgets are
authorized to be followed.
Each department is now intimated through inter departmental note (along with a
copy of their budget) that the budget has been approved.9
9 Introduction by GulabBaloch (Deputy Chief Manager SSGC)

Fixed Asset purchasing process:
In order to purchase an asset, fixed asset requisition (FAR) is required to be filed
by concerned department, which should be approved by the head of that
department. FAR contains details of assets required by the department.
The FAR is now forwarded to Procurement department, where Deputy Manager
checks whether the FAR falls within the budget. The procurement department invites
quotations through tender (if not available in store) and on the basis of commercial
and technical evaluation and lowest bidders, a supplier is selected (all such
procedures documented in Evaluation Report) and then Purchase order (PO) is
prepared and sent to supplier.
All assets are received by the KT stores department, where quality inspection is
conducted (however not documented) and then a Material Receiving Statement
(MRS) is generated and a copy of which is forwarded to the finance department.
Following entry is generated:
Inventory receiving account xxx
AP accrual account xxx
On delivery of asset to the concern department, following entry is generated:
Asset clearing account xxx
Inventory receiving account xxx
When invoice received by finance department, Account payable department enter
invoice in AP module which match invoice with material receiving statement and
following entries are generated:
AP accrual account xxx
Liability account xxx
Asset cost account xxx
Asset clearing account xxx
Depreciation expense xxx

Accumulated depreciation xxx
At payment of invoice, following entry is generated:
Liability account xxx
Bank xxx
Fixed Assets Purchase Process:
Requisition verified by the
inventory section and
approved by CM, DGM and
GM/MD
Requisition sent to the
procurement department for
order placement
Supply of assets by the
supplier at Receipt
&Despatch section at
Karachi Terminal
Asset delivered to the user /
requisitioning department
Details incorporated in the
relevant records at month end
Fixed Asset Requisition
sent to the inventory
section duly authorised
by the departmental
head

Depreciation and Adjustment Process
Once an asset has been capitalized, working for its depreciation starts. Full year
depreciation is charged for the first year regardless of its purchase data. The
company uses the straight line method of depreciating except for meter plant, where
reducing balance method is used. Depreciation rates differ for different assets. It
even differs for same assets in different cities.
In the certain situation we call for making adjustments e.g. transfer of an asset from
one unit to another, different between assets in books and its physical existence etc.
Retirement of the Asset
After the completion of life of asset which is fixed by company we retire it. 1st the
Assets Retirement Requisition (ARA) is prepared by the user department and it is
sent to the fixed asset section of finance to retire that asset. The company SSGC’s
follows certain policies for the retire of asset e.g. only those asset which have a zero
book value can be retired. After checking the book value the inspection team is to be
formulated. That inspection team inspects the asset, which is to be retired for
verification of the condition of the asset. After inspection the report sent to the fixed
asset section along with ARA. It is approved / disapproved on the basis of inspection
report by GM, DGM and MD. After approval the asset sent to store at Karachi
Terminal (KT) for disposal. In case an employee of the company buys it, it is sold on
written down value or at 7.5% of its cost, whichever is higher. And some old assets,
which are fully scraped and not present physically, are deleted from the books
through approval of the management.10
10 From the documents of Fixed Assets Section

Fixed AssetsRetirement Process:
Asset Retirement Advice
prepared by the user
department and sent to
the inventory section
Inspection of the asset to
be retired is conducted
for verification of the
condition of that asset
Section Inspection
report sent to the
inventory along with
ARA
Retirement advice is
approved / disapproved
on the basis of
inspection report by GM,
DGM and MD
Asset sent to store at KT
for disposal

Chapter # 06
INVENTORY ACCOUNTING

INVENTORY ACCOUNTING
Function:
To check the store balances, maintain and control the records of every kind of
stock/material placed in stores at different locations of company.
Here, in SSGC Head Office record of each store all location in company is controlled
and checked for proper receipt and issue of items.
Working:
Extracting stores balances in ERP.
1. Checking of stores balances with ledger balances on ERP.
2. Reconciliation store stock loan balances with ledger balances for the more
accuracy.
3. Checking of miscellaneous reports of stores balances for confirmation.
4. Preparation of reports of stores stock on quarterly, half yearly and annually.
Functions Performed By Company Stores:
Major functions are performed by company includes:
 Receipt of stores
 Issuance of stores for Distribution Projects.
 Issuance of stores for Transmission Projects.
 Issuance of stores for Meter Plant Projects.
In order to fulfill these functions , company has several stores ate different locations.
And here we go in the detail of these stores by using tables.11
11 Introduction by Muhammad SaleemDurani (Manager)

COMPANY
DISTRIBUTION TRANSMISSION METER PLANT
DISTRIBU-
TION STORE
KARACHI
MAIN STORE
SITE
GULSHAN
STORE
ST.STORE
SITE
DISTRICT SITE
SINDH
HYDERABAD SUKKUR
NAWABSHAH LARKANA
ST.
HYDERABAD
ST. SUKKUR
QUETTA
QNGDP
ST. QUETTA
MAJOR FUNCTIONS OF COMPANY
DISTRIBUTION STORES

METER PLANT
METER PLANT ST. METER PLANT
TRANSMISSION STORES
METER PLANT STORES
TRANSMISSION
OPERATION STORE-KT HQ-III HYDERABAD
HQ-II NAWABASHAH HQ-I, SUKKUR
IRBPC-HQ-DADU IRBPC-HQ –SHIKARPUR
QPL(O&M)-SIBI QPL(O&M)-QUETTA
CD-KHADEJI GRIEP PROJECT KHADEJI
PIRKOH-SUI ST. KHADEJI
DISTRICT KHI KHADEJI
DISTRICT KHI
TERMINAL

Store Dealings:
Store accounting is based on meaning average basis. Each item has been allotted
index number according to the description and specification of material. Store index
is based on seven digits having fields of 00/00/000. 1st 2 digits denote main section
to whom material is to be sent e.g. HO, Trans, MMP, etc. 2nd 2 digits denote sub
section e.g. Finance in HO etc. 3rd 3 digits denote serial no of item like as Printing
Paper, Pen, Pipes etc. Stores system is based on the following store documents:
1. Material Receiving Statement
Foreign Receiving Statement.
Local Receiving Statement
2. Material Requisition
3. Inter Store Stock Transfer
4. Material Return Voucher
5. Adjustment Memo
Store accounting is based on above store documents for generation of cost of
material received of issued.
Purpose of Store Document:
1. Material Receiving Statement
When the material is received in the store department by the supplier or the
company the store department sends two receipts 1st for supplier or respected
department and 2nd for store section for maintaining the record and controls it.
That receipt is known as Material Receiving Statement. If the material is supplied
from abroad in that case the Foreign Receiving Statement is issued and in the
case of local supplier the Local Receiving Statement is issued. When the receipt
is received by the store section from the store department the store section check
R/S number, date of issue, delivery challan / invoice no: Supplier name and
address, index number, description, units, and quantity (ordered, received, and
balance) through ERP that the received material is present at store department or
not. After confirmation the receipt is put into records.

2. Material Requisition
When the store department issue the material to the user department according
to user demand the receipt is send to the store section for informing that we issue
that material to that user department in case of availability and approval of high
level management. That receipt known as Material Requisition. After receiving
that receipt the store department check the indenting department and particular
of job, store location code where from the material is issued, requisition serial
NO:, date of issued material, company code, function, account, organization unit
and project code, order number, quantity required, store index number, and
quantity issued through ERP that the requisite material is issued from store
department or not. After confirmation the receipt is put into records.
3. Inter Store Stock Transfer
Sometimes material is required for one store due to out of stock and that material
is in access for another store department then needed department sent the
requisite for material and then material will transfer from accessible point to out of
stock point and receipt is to be sent to the store section for maintaining and
controlling the account with the name of Inter Stores Stock Transfer. The store
section check that from which store department to which store department
material is transferred along with the respected location code. And store section
also check the issuing store code NO:, serial NO:, date of transferring,
description of material transferred, store index number, unit code and quantity
transferred through ERP that the transferred material is in actual transferred from
one store department to another store department. After confirmation the receipt
is put into records.
4. Material Return Voucher
When the material is issued against the requisition sometimes material is not in
use or unserviceable and the user department return that unserviceable material
to the store department. When it is received by the store department they send
the voucher to the store section with the name of Material Return Voucher for the
purpose of maintaining. When it is received by the store section they check that
from which location material is return, department name, date of return,
organization code, serial number, description, job number, M.R NO. & date

against which drawn, index NO., and quantity returned through ERP that the
returned material is correctly record or not by the store department. After
confirmation the receipt is put into records.
5. Adjustment Memo
Sometimes during the entry we are doing mistake like wrong entry of index
number, invoice number, quantity, amount, job number, or others to correct these
mistake companies make a journal voucher (JV) and correct the mistake. After
correcting the mistake the store department sends a receipt to the store section
with the name of Stores Adjustment Memo for updating changes. When the
receipt is received by the store section they check date of changing, store index
no:, job number, quantity and remarks for what purpose that adjustment memo
made.12
12 Documents of Store Department

Chapter # 07
COST & REVENUE BUDGET
SECTION

COST & REVENUE BUDGET SECTION
Function:
The major function of cost and budget section is cost controlling and maintaining of
revenue expenses and also accumulation of revenue cost which is incurred during
the period, and planning for allocating the budget to the individual department. And
another function of this section is to calculate the cost of operating and
administration section.
Purpose:
 To minimize the extra cost
 To operate the organization effectively and efficiently
 Closely watch t the individual department
 To run the organization smoothly
 To control the cost of operating and administration.13
Budget Planning Process:
Cost &Budget is one of the hub section of finance department. This section is
indispensable because planning & cost both are the backbone of every successful
organization and this section is first and foremost responsible for the budget
planning. Budget planning begins before the distribution of budget for the new fiscal
year. The SSGC provide the authority to every department to make their budget like
wise, it means department wise and it is controlled and maintained by the cost and
budget section in finance department. The 1st step of budget scheduling is
“Proposal”. This section send proposal to every department of company in order to
know the requisite budget by the departments. Every department suggest their
required budget for the new fiscal year along with the details where they want to
spend budget and send the proposal back to cost & budget section. The section
checks their budget proposal and compare with previous budget. In case of big
difference between the current and previous budget the budget will not approved
before the justification of respected department.
13 Introduction by the Manager of C&RBS)

Then this section brings together these proposals according to organizations wise
and sends these proposals to the board for the approval. The board makes
necessary changes and approves the compiled budget and report will send to every
department. And approved proposals are loaded in ERP system (Oracle Financial).
The budget is to be made according to year wise but it is issued quarter wise. After
that we are uploading the budget.
The process of uploading budget is shown below:
Uploading Budgets:
Usually budget is uploaded using Application Desktop Integrator (ADI). ADI allows
the user to create and modify budget in an Excel spreadsheet which can then be
uploaded to Oracle General Ledger.
For maintaining security, the people of the respective department are provided with
their own user ids and password. Access is allowed only to limited individuals
For uploading the budget we first need to select the journal type i.e. budgeted journal
and the numbers of Journal

Before any data can be uploaded, the sheet needs to be made unprotected first by
selecting the “Unprotect Sheet” option from the tools menu.
While viewing the budget worksheet that we want to upload, we have to choose
Upload to Interface from the Ledger icon in the ADI toolbar. After that decide whether
to upload All Rows or Flagged Rows (those marked with Y).

Start the budget upload process by selecting one of the following options
 Start if no errors in upload
 Start regardless of errors
Choose the ok icon to initiate the process When the process completes the system
will notify of the completion status.
After the uploading of budgets, these are checked to make sure that budgets are
correctly allocated in their accounts. After having complete satisfaction the cost &
budget section release or allocate the budgets in the accounts of every department.
Release of budgets completes the process of budget allocation. In the new fiscal
year the departments perform their activities and incur expenses. The expenses are
debited in the accounts causing the budget accounts credit.14
14 Oraclesystemof SSGC

Additional Budget & Re-appropriation:
This Re-appropriation form will use due to shortfall in budget or the departments
spend their budget before the specified period or that project is not mentioned in
their budget for whom they are sending the requisition. In order to solve this problem
which are occurred due to shortfall in budget, 1st the required department sends the
appeal for Additional Budget or Re-appropriation to CFO for approval of required
material. After the approval from CFO they sent that request to cost and budget
section for further procedure.
The cost and budget section checks that from which department the required
department to take budget and also checks that is that department budget is
available or not and also check the required department is really needed for that
material or not.
After checking and confirmed these things the cost and budget section transfer the
budget from the required department is needed through ERP.

Chapter # 08
CONCLUSIONS
&
SUGGESTIONS

CONCLUSIONS
1. There is not an availability of specific conference room to the internees.
2. The extra curricular activities except the project of the internees are not being
carried out.
3. There is no program of training and development for the contract based
employees to enhance their skills.
4. Top executive of the company are less willing to share their valuable
experiences with the juniors.
5. The company provides an opportunity of internship to the short number of
students.
6. There is no proper method for the recruitment and selection of the internees.

SUGGESTIONS
1. It is worthy to respect SSGC management that provides a platform to the
students for internship, but I suggested to SSGC management that they also
provide a facility of conferencing room where internees carry on discourse
and discussion regard in projects.
2. SSGC management ought to arrange a debate contest and other extra
curricular activities among the internees on suitable day, that might be
enhance the inter personal and mental skills.
3. Contracted-based employees to be provided a facility of training and
development that might enrich and enhance skills of employees.
4. All executives must extend hand of moral and material support to diversify the
knowledge to staff members.
5. I request to SSGC management for increasing number of seats for internees,
that is noble cause to humanity and nation.
6. I further recommended that SSGC management to chalk out strategy for
proper recruitment and selection of internees that ultimately is benefit of
company itself.

REFERENCES
1. K.K.Dewit “ Modern Economics Theory And Practice “ 2005 published
from University of Delhi.
2. M.SaeedNasir “ Money and Banking “ 2008
3. Prof. Dr. Anwar Ali Shah G. Syed “ Banking for Intermediate “ 1991
published by Kifayat Academy Karachi.
4. Christopher Viny “ Financial Management “ 2005 4th edition.
5. M.A. RaufBaig “ intermediate Accounting “ 2007
6. H. Kent Baker “ Financial Management “ 2000
7. C. Vann Horne “ Financial management “ 2006 8th edition.
8. Sher Mohammad Chudhary“ Statistics “ 2009 3rd edition.
9. Oxford Advanced Learners Dictionary 2007.
10.Annual report of SSGC 2008-09
11.Financial report of the year 2008-09
12.www.ssgc.com.pk/introduction
13.Annual report of SSGC
14.www.ssgc.com.pk/outlook
15.Accounting documents of SSGC
16.Introduction by Muhammad SaleemMemon (Manager – GL)
17.From Oracle system of SSGC
18.Introduction by GulabBaloch (Deputy Chief Manager SSGC)
19.From the documents of Fixed Assets Section
20.Introduction by Faiq and ShujjaShaikh (Managers of Gas Purchase)
21.Guider book of Gas Purchase Section
22.Introduction by Muhammad IqbalBatavia (Manager B.B.S)
23.Introduction by Muhammad SaleemDurani (Manager)

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