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Internship report on ptcl 2014 final

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Internship report on ptcl 2014 final

  1. 1. 1 INTERNSHIP REPORT ON PTCL (Pakistan Telecommunication Company Limited) Presented by Imran Tariq Roll No 8559 (Session 2012-2014) M.Com (Evening)
  2. 2. 2 Preface In fact, for the students of M. Com. the 6 week internship is a golden chance to develop the capability and skill of administration and management in the practical environment of different organizations. In the context, I select the PTCL (PAKISTANTELECOMMUNICATION COMPANY LIMITED). This report shows and will guide the Readers to have an idea about maintain accounts, its operations and the practices followed today in Pakistan. My reasons for doing the internship program in PTCL is to get firsthand knowledge about maintain accounts and improve my business life, because PTCL is the best organization indeed. I tried to remain to the point, in writing the report. Brief history, management, organizational structure of PAKISTAN TELECOMMUNICATION COMPANY LIMITED and my work at branch suggestions, for improvement are also given in it. Moreover, particularly being a student of Finance & Accounts it is necessary for me to get practical knowledge of the managerial & financial activities of the organization. So I have tried my best to learn a lot about accounts because it relates with financial activities. I have made all possible efforts to summaries the broad history and working of the organization. This work is a collection of my observations and experience during the internship period and afterward. The sources of my information for the preparation of this report also include the written notes, literature on banking, and verbal discussion with staff members, senior students and my fellows. The information contained in the report is based on my personal observation, practical working and interviews with the staff during my internship training.
  3. 3. 3 Dedication No words can adequately express my overriding debt of gratitude to my parents whose support helps me in all the way. The true value of a teacher is determined not by what he knows, nor by his ability to impact what he knows, but by his ability to stimulate in others a desire to know. So I want to say thanks to my TEACHERS…. Above all I shall thank my Teachers friends who constantly encouraged and blessed me so enable me to do this work successfully
  4. 4. 4 Acknowledgements In the name of Allah, who gave me ability and strength to complete my internship. Iowe considerable debt to large number of persons who either directly or indirectly helped me during various phases of internship. It was a new experience, exciting but challenging and indeed guidance rather frequently, which was afford very generously. In PTCL I am grateful to all the staff members for providing me an opportunity to work in the organization at the style and speed of my convenience. I also wish to record my gratitude for the following staff members for transforming my theoretical knowledge in practical understanding, despite their heavy commitments they always found time to answers my questions, resolve queries and never ran out of patience
  5. 5. 5 Table of Contents 1) Introduction /Background ...................................................................................8 2) Organizational structure / Hierarchy .....................................................................11 3) Product introduction ............................................................................................18 4) Personal practical work done by student ............................................................25 5) SOWT Analysis...................................................................................................32 6) Financial Statement Analysis...............................................................................35  Ratio Analysis  Trend Statement  Horizontal Analysis  Vertical Analysis 7) Conclusion...........................................................................................................55 8) Suggestions & Recommendation ........................................................................57
  6. 6. 6 EXECUTIVE SUMMARY The internship report is the necessary part of the M.com program, and every student has to do internship of 6 week in any organization of repute after successful completion of the internship work a student is required to write whatever practices and practical work he has done in his internship work. The main purpose of the internship report is to familiarize student with contemporary Human resource practices and techniques being adopted by the organization. In the report a student has to do three types of analysis of the organization such as General Analysis, Human resource Management Analysis, and Swot Analysis of the respective organization. Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in Pakistan. Almost 5.7 million customerofPtcl.This Company provides telephone services to the nation and still holds the status of backbone for country‟s telecommunication infrastructure despite the arrival of other telecom giants like Mobilink, Telenor and China mobile. The economic growth of a developing country depends mainly on the telecommunication sectors and involvement in information technology, telemarketing and E-commerce makes it an integrate organ of the overall development of the country. PTCL also continues to be the largest CDMA (code division multiple access) operator in country with 0.8 million v-fone customers. Currently major initiatives have been taken by PTCL to upgrade its network, introduce a range of new value added services, develop a portfolio of information technology, internet, national long-haul network, carrier services, write label services, EVO wireless broad band, broad band IPTV (Smart TV). The company consists of around 2000 telephone exchange across country providing largest fined line network.
  7. 7. 7 Chapter No. 01 1. INTRODUCTIONs 1.1Background and History Pakistan Telecommunication Corporation (PTC) has established in December 1990,taking over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. PTCL operates in one of the most dynamic, deregulated and competitive markets in the world; Pakistan with a population of 165 million people is a fast growing economy with relatively low penetration of Information Communication Technology (ICT) services. PTCL intends to be the leading ICT provider in the region by achieving customers' satisfaction and maximizing shareholders' value and as such PTCL perceives its future as a customer centric organization enhancing its infrastructure and investing in people. This coincided with the Government's competitive policy, encouraging private sector Participation and resulting in award of licenses for cellular, card-operated payphones, paging and,lately, data communication services. In 1994, the PTCL becomes the company limited (Pakistan Telecommunication Company Limited) by issued six million vouchers exchangeable into 600 million shares of the PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid-1996In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and PakNet respectively. None of the brands made it to the top slots in the respective competitions. Lately, however, Ufone had increased its market share in the cellular sector. The PakNet brand has effectively dissolved over the period of time. A recent DSL service launched by PTCL reflects this by the introduction of a new brand name and operation of the service being directly supervised by PTCL.
  8. 8. Pakistan Telecommunication Company Limited had exclusive rights to provide basic telecom services in Pakistan till the end of year 2002. With the announcement of Deregulation Policy by the Government of Pakistan in 2003, PTA has issued licenses for basic telephony to the private sector in Pakistan who will be competing PTCL, the incumbent. From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone& Telegraph Department in 1962, to this very day, ours is a story of commitment and vision. The year 2006-07 in the telecom sector was marked by the phenomenal growth in the mobile sector in Pakistan, which doubled its subscriber base to 60 million. The teledensity increased from 26% to 40%, helping to spread the benefits of communication technology across the country. PTCL ’s mobile phone subsidiary Ufone’s subscriber base grew by more than 87%, from 7.49 million to 14 million. The year also witnessed the entry of major telecom companies, most notably China Telecom and SingTel, into market. The privatization of the company was completed in the 2006, following the purchaser of26% ‘B’ class ordinary shares by Etisalat International Pakistan L.L.C. EIP took over management control on 12th on April 2006.In short PTCL has been working vigorously to meet the dual challenge of telecom development and socio-economic uplift of the country. This is characterized by a clearer appreciation of ongoing telecom scenario wherein convergence of technologies continuously changes the shape of the sector. 8
  9. 9. 9 1.2 Vision “To be the leading Information and Communication Technology Service Provider in the region by achieving customers' satisfaction and maximizing shareholders' value” 1.3 Mission To achieve our vision by having:  An organizational environment that fosters professionalism, motivation and quality  An environment that is cost effective and quality conscious  Services that are based on the most optimum technology  "Quality" and "Time" conscious customer service  Sustained growth in earnings and profitability
  10. 10. 10 Chapter No.2 Organizational Structure And / Hierarchy
  11. 11. An Organizational Structure clarify the roles of personnel of an Organization and to determine who has to do what task, which is responsible for what, objectives to be achieved, who is to report to whom and to remove the obstacles for performance caused by confusion and uncertainty of job assignment as well as to make easy decision- making and communication networks reflecting and supporting organization objectives. The head of Pakistan Telecommunication Company Limited is called “President”. Then come the SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance), SEVP (Operations), SEVP (Technical), and SEVP (Human Resource Management), SEVP (Marketing & Business Development). Then there is a chain of Executive Vice Presidents (EVPs) like EVP (Finance Central), EVP (Marketing), EVP (HR Central), EVP (Accounts), EVP (Operation), EVP (Information Technology, Training & Research), and EVP (Revenue). All these are appointed at Pakistan Telecommunication Company, Headquarters at G-8/4, Islamabad. Apart from these EVP, there are also EVP (Operation), EVP (HR) etc who are heading the other regions of PTCL in major cities country wide. Then there are Chief Engineers and General Managers at H/Qs who report to their relevant EVP. Then there are Senior Managers, Deputy Directors, Assistant Directors, Account Officers, Assistant Account Officers, Financial Analysts, Marketing Managers, Computer Programmers, and IT Specialists etc. There are also Regional Heads (General Managers) to head PTCL Regions then come the Senior Managers (Operations), Senior Engineers (Operations), Engineers to look after the telecom system of Regions. There are also Senior Managers Finance, Account Officers and Accountants to Handle Regional account and billing matters. Manager HR & his staff are responsible to take care of Personnel affairs at Regional Level. In non-gazette staff there are Engineering Supervisors Operations /Switching Power plant /Optical Fiber system/M.W Media, Account Assistants, Stenographers, Assistants, Key Punch Operators, Telecom Technicians, Upper Division Clerks, Lower Division Clerks, Line Men, Wire Men, Drivers, Exchange Cleaners, NaibQasids and Peons etc. All the staff is recruited by the HR Department headed by SEVP HR. The HR experts are responsible for hiring & to further streamline its recruitment process 11
  12. 12. 12 2.1BOARD OF DIRECTORS It is the highest body of PTCL, which has been rested the function of policy formulation. The directors appointed shall not be less than seven (7) in numbers. (Presently it has 10 members). There is general body meeting once a year of all the shareholders to elect the members of board of directors. A director elected shall hold office for a period of three years unless the earlier resigns, becomes disqualified from being a director or otherwise ceases to hold office. A retiring director shall be eligible for re-election. Mr. Azamat Ali Ranjha Chairman PTCL Board Mr. Abdulla Abdulrahim Al Nooryani Member PTCL Board
  13. 13. 13 Dr. WaqarMasood Khan Member PTCL Board Rainer Martin Maximilian Rathgeber Member PTCL Board Mr. SerkanOkandan Member PTCL Board Mr. Fadhil Mohamed Erhama Al Ansari Member PTCL Board
  14. 14. 14 Dr. Daniel Ritz Member PTCL Board Sardar Ahmad Nawaz Sukhera Member PTCL Board Mr. MudassarHussain Member PTCL Board Ms. Farah Qamar Company Secretary PTCL
  15. 15. 15 Management Azmat Ali President & Chief Executive Officer Muhammad NehmatullahToor S.E.V.P (Finance) / Chief Financial Officer (C.F.O) Mohammad Nasrullah Chief Technical Officer (C.T.O) Mr. JavedMushtaq Chief Information Officer (C.I.O) Syed MazharHussain S.E.V.P (HR / Admin & Procurement) SikandarNaqi S.E.V.P (Corporate Development) NaveedSaeed S.E.V.P (Commercial) Mr Tariq Salman S.E.V.P (Business Zone North) Mr Abdullah Yousef S.E.V.P Business Zone South Mr Hamid Farooq S.E.V.P Special Project Farah Qamar Company Secretary Legal Affairs Dr. Syed Mohammad Anwar Shah Bankers Askari Bank Limited Citibank N.A. Faysal Bank Limited Habib Bank Limited MCB Bank Limited National Bank of PakistanRBS (formerly ABN AMRO) Standard Chartered Bank Limited United Bank Limited
  16. 16. 16 Registered Office PTCL Headquarters, Block-E, Sector G-8/4, Islamabad-44000, Pakistan. Tel: +92-51-2263732 & 34 Fax: +92-51-2263733 E-mail:company.secretary@ptcl.net.pk Web: www.ptcl.com.pk Auditors A.F. Ferguson & Co. Chartered Accountants Ernst & Young Ford Rhodes SidatHyder, Chartered Accountants Share Registrar M/S FAMCO Associates (Pvt.) Limited Ground Floor, State Life Building 1-A I. I Chundrigar Road Karachi 74000 Tel: +92-21-2422344, 2467406 Employees Retirement Benefit Plans  Pakistan Telecommunication Employees' Trust  PTCL Employees' GPF Trust  Telecom Foundation Auditors A. F. Ferguson & Co., Chartered Accountants Ernst & Young Ford Rhodes SidatHyder, Chartered Accountants
  17. 17. 17 Chapter No.3 Product Introduction Main product of Company Ptcl landline V-fone U fone Customer service Ptcl broadband Smart services EVO wireless 3.1 Ptcl Landline PTCL is one major service is that it provides Telecommunication Service to Pakistan for both domestic and international communication. For local calls the code used is non-STD. For calls to other cities (e.g. Karachi to Lahore) the code is called STD. For International calls the code used is ISD. Dialing System When dialing on landlines, calls made within cities are considered local calls. Calls to other cities (e.g. Karachi to Lahore) are considered long distance calls and are metered according to distance. (e.g. When dialing to Lahore from Karchi have to dial the code for Lahore then followed by the number of the destination, therefore you dial 0423-XXX-XXXX ). For local calls, you just dial the local number. For international calls, you dial "00" followed by the country code. (E.g. For calls to the UK from Pakistan you dial 00 - 44 - XXXXXX). 3.1.2 Services for Corporate Customers PTCL is striving hard to facilitate its valued corporate customers at each level of service. PTCL offers a host of unmatched services to meet the needs of the Corporate Customers. The list of Corporate Services is given as under. For more information regarding any of the following services, PTCL Corporate Customer Centers can be contacted.
  18. 18. 18 INBASED VALUE ADDED SERVICES VALUE ADDED SERVICES  0800-Toll Free  PTCL Calling Cards  Domestic And International  Premium Rate Service - 0900  Virtual Private Network  Universal Access Number (UAN)  Universal Internet Number (UIN)  ISDN PRI  TelePlus (ISDN/BRI)  Local 3.1.3 Universal Access Number (UAN) UAN (Universal Access Number) service is ideal for organizations Engaged in marketing of products or services. Here is a list of business that can avail UAN Service.  Banks  Newspapers  Airlines  Hotels  Shipping Lines  Consumer Products Companies  Insurance  Credit Card  Companies Travel  Courier Services  Utility Services  Trading Companies  Stock Brokers 3.2 V-fone It is a product which is wireless. We can use anywhere in Pakistan. Internet and web browsing is also its feature. It is under CDMA.V-fone also providing the internet facility it works such a ptcl landline function.
  19. 19. 3.3 Ufone UFONE (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service provider. Since the outset, it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. The growth of the cellular industry is a direct result of the successful implementation of the telecom deregulation and cellular mobile policy by the Ministry of IT and telecommunications (MOIT&T) and the support, guidance and timely enforcement of regulatory process by the Pakistan Telecommunication Authority (PTA). 3.3.1 KEY ACCOMPLISHMENTS Ufone has always played a pivotal role in the development of the cellular market in Pakistan.For the most part, it has been a step ahead in introducing innovative products to the market. Ufone was a pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) in Pakistan, and lead the way in introducing GPRS international roaming and prepaid international roaming for these services in the Pakistani market. 19 3.3.2 Performance The customer focus and best offering has allowed Ufone to build a subscriber base of over 20 million in less than a decade. Ufone has network coverage in 10,000 locations and across all major highways of Pakistan. Ufone currently caters for International Roaming to more than 288 live operators in more than 160 countries. Ufone also offers Pakistan’s largest GPRS & BlackBerry Roaming coverage available with more than 200 Live Operators across 122 countries. More recently, Ufone has become a focused and intensive leader in VAS, constantly introducing innovative services, which have been the first of their kind in the Pakistani cellular industry.
  20. 20. 3.3.3 Brand While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for masses. In keeping with the upcoming competition and market dynamics, Ufone increased its focus on the youth segment(which comprises 50% of the population), with the Prepay brand. By designing market focused products, Ufone’s brand team launched aggressive campaigns, which further increased the brandequity. The new brand image gained huge popularity amongst the targeted market. A recent marketing survey conducted by a prominent marketing research company showed that Ufone has considerably increased its brand visibility and image. Ufone’s Prepay brand is now considered to be one of the most favored brands by the youth market and is followed by other mobile operators launching their respective brands for the youth market. 20 3.3.4 International Coverage Ufone provides International Roaming facility with more than 150 international operators across79 countries. Ufone has GPRS roaming agreements with several international operators and also provides prepaid roaming facility to selective destinations. 3.3.5 Customer Service Ufone is proud to have an efficient and friendly customer service through 21 company-owned Sales & Customer Service Centers and nearly 250 franchisees across the country. The outlets are able to service the customers with innovative solutions, and are empowered with Web based franchise management systems. Ufone is poised to face the ever increasing challenges of the market and is confident it will attract new customers. It has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24hour call center facility.
  21. 21. 21 3.3.6 Network Coverage Ufone has always believed in a solid commitment to growth, security and reliability. Therefore, Ufone has always balanced its expansion efforts and quality of service. With a total current investment of $400 Million, Ufone has network coverage in more than 260 cities and towns and across all major highways of the country. Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a company committed to excellence. Under the new vision of Etisalat and with the support and collaboration of its employees and vendors, Ufone aspires to be the best in the market by offering customer focused products and a quality service and sales network.Ufone is a subsidry of PTCL. It works under PTA and it is a GSM featured product. Ufone is a leading GSM service provider in Pakistan now days. 3.4 PTCL Broadband It is providing high speed internet browsing. DSL is now in top internet speed. Ptcl earns large part of income from this service. All other internet provider company work under the ptcl agreement. PTCL also provide Internet service at different Hour rates. With this service one can connect to Internet from any PTCL telephone line. 3.5 PTCL Smart TV PTCL has started a digital interactive television service for the first time in Pakistan in 2008. By using the IPTV (Internet Protocol TV) Technology. Over 150 live channels are available to see with good picture quality. PTCL brought Pakistan into the list of those few countries that are providing the interactive TV services to their customer. 3.6 EVO WIRELESS BROADBAND PTCL EVO is Pakistan‟s fastest 3G wireless broadband internet which offers its customers, “Superior 3G Internet experience”. EVO wireless is operational in over 250 cities nationwide, and enabling a broadband wireless revolution in Pakistan.
  22. 22. 3.7 Evo Wingle EVO Wingle is backed by PTCL EVDO Rev B network offering blazing fast hyper speeds of up to 9.3Mbps in over 200 cities across the country & auto switch-over to 3.1 Mbps in more than 250 cities.EVOWingle works well with any USB power source. So plug in your Wingle into a USB port in your car’s stereo system or cigarette lighter charger, and get connected to 9.3Mbps speeds on-the-go without the need of a laptop. Or plug-in the device into any USB power charger to get connected instantly. 3.8 Evo Charji Being the fastest network available means download speeds four to five times faster than 3G networks, enabling faster downloads, instantaneous uploads, real time gaming, extremely fast movie downloads and speeds that literally make you stream like a dream. From surfing the web to watching movies, from getting social with friends to sharing pics or playing games; Charji EVO gives you the power to do it all instantly on the country’s fastest wireless network. 22
  23. 23. 23 3.9 Competitor of Ptcl There is no meager competitor of PTCL in landline but with the growth of telecommunication industry of Pakistan competition increasing specially in mobile phone sector. In total there are more than 800 million subscribers of mobile phone. There are 03 big players in mobile phone industry but 3 of them are the competitor of PTCL: Mobilink Telenor Warid Tel Zong I. Mobilink Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having more than users base which is the 36% of total cellular industry of Pakistan. Mobilink is basically competing Ufone which is subsidiaries of PTCL. II. Telenor Telenor is another cell phone company it have subscribers which is 20 % of total mobile industry. III. Warid Tel Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more than 15 million subscribers which is 17% of Pakistan mobile industry. IV. Zongchina Mobile Company Zong is also providing cell phone facilities in Pakistan. 26.7 million Subscriber of zong/china mobile company
  24. 24. 24 Chapter No 4 Own work own / personal practical work Done by student 4.1 Finance department Finance department is the most important department of Pakistan Telecommunication Limited. All payment is made through this department. This department is charge the budget of every department. Cheques, demand draft and other payment etc recorded in this department. 4.1.1DDO Office DDO means Drawing and Disbursing Officer. Senior Manager (Finance & Management Accounts) FTR Faisalabad is serving as DDO in FTR. DDO is responsible for payments for all the purchases made / services acquired by PTCL offices and exchanges in the Region and payment of salary and other benefits to the employees. During my 6 weeks internship in DDO office, I viewed the work being performed by different employees. The detail is as under Pre-Audit of all invoices Pre-Audit of all invoices I. Payment of invoices II. Financial Reports III. All procurement related matters like Tenders, PRs, and Work Orders etc. IV. Uploading of weekly data of WHT deducted from Vendors and monthly data of WHT deducted from Salary on FBR website and creation of WHT payment slips
  25. 25. V. Uploading of Monthly & Annual Statements of WHT deducted from Vendors and 25 Employees on FBR Website VI. Preparation of Certificates of Annual I. Tax deducted from Vendors VII. Monthly Statement regarding purchase of Fixed Assets VIII. Preparation of List of Accrued Expenses at month end and punching on SAP IX. Monthly Revenue and Expenditure Statement X. Employee related payments like Group Insurance, Benevolent Fund, Marriage Grant, TA Bills, Medical Reimbursement Bills, Entertainment Charges, Uniform, Leave Encashment, House Requisition and Bonus etc. XI. Entry of Cash Payments on SAP XII. Bank Reconciliation Statement XIII. Preparation of Bank Ceiling Case XIV. Statement of GST paid on Utility and Non-Utility Bills XV. Preparation of Monthly Fuel Topping Statement
  26. 26. 4.1.2 Procurement Acquisition of goods, services or works from an outside external source. It is favourable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. 26 4.1.3 Process of procurement Procurement may involve bidding process known as tendering. A company or organization may require some product or service. If the price exceeds a threshold that has been set (e.g.: government department procurement policy: "any product or service desired whose price is over X must be put to tender"), depending on policy or legal requirements, the purchaser is required to state what is required and make the contract open to the bidding process. The concept of total cost also comes into play. At times, not just price, but other factors such as reliability, quality, flexibility and timing, are considered in the tendering process. A number of potential suppliers then submit proposals of what they will provide and at what price. Then the purchaser will usually select the lowest bidder; however if the lowest bidder is deemed incompetent to provide what is required despite quoting the lowest price, the purchaser will select the lowest bidder deemed competent. In the European Union, strict rules on procurement must be followed by public bodies, with contract value thresholds determining the processes required (relating to advertising the contract, the actual process etc.). 4.1.4 Procurement Steps Procurement life cycle in modern businesses usually consists of seven steps:  Identification of need: This is an internal step for a company that involves understanding of the company needs by establishing a short term strategy (three to five years) followed by defining the technical direction and requirements.  Supplier Identification: Once the company has answered important questions like: Make-buy, multiple vs. single suppliers, then it needs to identify who can provide the required product/service. There are many sources to search for supplier; more popular ones being Ariba, Alibaba, other suppliers and trade shows.
  27. 27.  Supplier Communication: When one or more suitable suppliers have been identified, requests for quotation, requests for proposals, requests for information or requests for tender may be advertised, or direct contact may be made with the suppliers. References for product/service quality are consulted, and any requirements for follow-up services including installation, maintenance, and warranty are investigated. Samples of the P/S being considered may be examined or trials undertaken.  Negotiation: Negotiations are undertaken, and price, availability, and customization possibilities are established. Delivery schedules are negotiated, and a contract to acquire the P/S is completed.  Supplier Liaison: During this phase, the company evaluates the performance of the P/S and any accompanying service support, as they are consumed. Supplier scorecard is a popular tool for this purpose.When the P/S has been consumed or disposed of, the contract expires, or the product or service is to be re-ordered, company experience with the P/S is reviewed. If the P/S is to be re-ordered, the company determines whether to consider other suppliers or to continue with the same supplier.  Logistics Management: Supplier preparation, expediting, shipment, delivery, and payment for the P/S are completed, based on contract terms. Installation and training may also be included.  Additional Step – Tender Notification: Some institutions choose to use a notification service in order to raise the competition for the chosen opportunity. These systems can either be direct from their e-tendering software, or as a re-packaged notification from an external notification company. 27
  28. 28. 28 4.1.5 Procurement Related Terms Vendor: A vendor is any person or company selling material or providing services. RPC: RPC stand for “Regional procurement committee”. GRN: GRN stand for “goods receipt notes”. TPC: TPC stands for “tendering process committees”. These include: 1. TOC ( Tender Opening Committee ) 2. TEC ( Technical Evaluation Committee ) 3. CEC ( Commercial Evaluation Committee ) 4. PNC ( Price Negotiation Committee ) 4.1.6 Voucher Types Payment Voucher ( PV) Payment Voucher is formed when any payment is made to an employee or a vendor / contractor. Receipt Voucher (RV) Receipt Voucher is formed when cash is received from an employee or a vendor / contractor Journal Voucher (JV ) Journal Voucher is formed when an advance is to be adjusted or an adjusting entry is to be made to some previous transaction. 4.1.7 Payment process of invoice/ bill I. Receipt of Dak II. Making of Dak to related employee/ Portion Holder III. Check the invoice and attached documents whether no required document is missing and invoice is certified and verified by the related employee and officer who have made purchases or got services from vendors.
  29. 29. IV. Putting the invoice and attached documents in file and getting approval from Competent 29 Authority (SM Finance) for its payment as per SOP (Set out procedure). V. Entering pass and pay orders on the invoice and got signed by Competent Authority (AM Finance and SM Finance). VI. Entry of invoice in Sap to create vendor claim and make the following documents a- Vender Document b- Payment Document c- Cheque Printing VII. Dispatching of cheque to the Vendor / Creditor 4.1.8 Salary and pension Finance department also issue pension and salary cheques. All cheques are prepaid in finance department. In finance department working do on (Sap) sap means system applications product. Every person has a vender code in ptcl. In sap write the name of vender amount and fill the other required form etc and then made payment. 4.1.9 Parking Parking means aad data in system or adds data in system application. It is first stage of entering data and effect on accounting system. Parker add data and send to related person than data enter in application automatically transfer for next approval stage. Mostly decoument comes for approval to senior manager. When document approve at the end cheques present to vender .
  30. 30. 30 4.2 REVENUE DEPARTMENT The revenue generated by the marketing department through selling the companyservices/products is collected by the Revenue Department. The roles played by theRevenue Department are following. i. Bill Printing & Distribution. ii. Issuance of Duplicate Bills. iii. Error correction of Bills. iv. Collection of defaulter amounts. i. Bill Printing & Distribution ii. The printing is basically carried out by regional billing computer center at every regional headquarter. These printed bills are handed over to Post Office after sorting &stapling by the Assistant Revenue Officer’s staff at Distt level. iii. Issuance of Duplicate Bills In case of missing or damaged bills received to customers the correction is also Revenue department’s responsibility. For this purpose the revenue office deputes its staff for each Tehsil level PTCL office during the bill payment dates normally from 18thto 30th of each month. iv. Error Correction of Bills In case of late payment or any other discrepancy due to missed collection by banks the previous amount is also included in the new bill. The revenue office is responsible for such kind of correction. v. Collection of Defaulter Amounts The amounts defaulted by the customers or the bad debts are also collected through revenue department. Each Telecom Recovery Inspector (TRI) is assigned a target of bad
  31. 31. 31 Chapter NO 5 Swot Analysis Now we move towards the most important part of the internship report the SWOT analysis after working 2 month in the company I find some critical issues about PTCL. After carefully analyzing these true issues of an organization now I am able to understand the organization in right way so at the end of my report I will go for SWOT analysis of PTCL.  5.1 STRENGTH  PTCL enjoy monopoly  State of the Art International Gateway Exchanges & Satellite Earth Stations  Large earnings  Good quality international connectivity  Customer Base of over 4 million  Government support  PTCL (Ufone) is market challenger in GSM segment.  Ufone is performing well though Warid, Telennor, Mobilink and Zong are tough 5.1.1 PTCL Enjoy Monopoly  PTCL is sole provider of land line services in Pakistan .so there is no competition  Regarding their basic service. It means that there is a monopoly of PTCL.  International Submarine Cables  High Capacity National Fiber Optic Backbone Ring  36 Transit Exchanges with easy Facility of Expansion  About 99% Digitization of Country Network  Strong Platforms & Exchanges for Value added Services  Access Network & Customer Base of over 04 millions
  32. 32. 32  5.2 Weaknesses  Not been able to nurture its growth around customer services oriented strategy.  Internal organizational and business issues.  Monopolistic culture has further added to complexities.  Paknet, the internet service provider arm of PTCL customers to incur losses due to poor management and lack of network optimization.  Ptcl-v, the fixed wireless phone service is poor.  Over employment & low productivity.  Slow decision making including external interferences.  Corporate culture akin to Government department.  Image – Lack of customer focus  5.3 OPPORTUNITY  Growth in telecommunication industry  More aware and technology understanding consumer – a base that is growing ata fast rate.  Have vast infrastructure and real estate which can be leveraged further.  Global connectivity reliability has been improved.  Partnership with new entrants in deregulated environment.  Scope for efficient cost effective operations.
  33. 33. 33  5.4 Threats  Increased competition in long distance counties to exert pressure.  VOIP use is increasing despite ambiguous and discriminatory policies.  Exposure to market competition.  Migration to cellular network  New technologies  Efficient operators  International players, reduction in settlement rates,  Migration to satellite and cellular telephony
  34. 34. 34 Chapter No.6 Financial Statement Analysis Balance sheet December 31, December 31, July 01, Note 2013 2012 2012 Rs ‘000 Rs ‘000 Rs ‘000 (Restated) (Restated) Equity and liabilities Equity Share capital and reserves Share capital 6 51,000,000 51,000,000 51,000,000 Revenue reserves Insurance reserve 2,958,336 2,678,728 2,678,728 General reserve 30,500,000 30,500,000 30,500,000 Unappropriated profit 16,324,138 12,498,296 18,133,609 49,782,474 45,677,024 51,312,337 Unrealized gain on available for sale investments 89,785 51,789 62,977 100,872,259 96,728,813 102,375,314 Liabilities Non-current liabilities Long term security deposits 7 529,358 534,487 707,668 Deferred income tax 8 3,749,739 2,886,049 6,119,346 Employees’ retirement benefits 9 33,050,773 32,422,497 23,114,716 Deferred government grants 10 5,123,099 3,991,818 4,083,022 42,452,969 39,834,851 34,024,752 Current liabilities Trade and other payables 11 38,583,250 27,621,334 20,548,656 Total equity and liabilities 181,908,478 164,184,998 156,948,722 Contingencies and commitments 12
  35. 35. 35 December 31, December 31, July 01, Note 2013 2012 2012 Rs ‘000 Rs ‘000 Rs ‘000 Assets Non-current assets Fixed assets Property, plant and equipment 13 87,219,249 85,041,154 85,870,337 Intangible assets 14 5,157,172 2,678,582 2,799,659 92,376,421 87,719,736 88,669,996 Long term investments 15 7,791,296 7,791,296 6,607,439 Long term loans and advances 16 6,784,020 11,986,019 14,311,954 Investment in finance lease 17 38,781 - - 106,990,518 107,497,051 109,589,389 Current assets Stores, spares and loose tools 18 3,675,314 2,934,843 2,972,824 Trade debts 19 18,596,301 15,402,253 8,785,812 Loans and advances 20 6,541,852 3,409,815 1,368,215 Investment in finance lease 17 12,927 - - Accrued interest 21 667,024 559,390 426,527 Recoverable from tax authorities 22 15,586,424 17,384,612 17,784,694 Receivable from the Government of Pakistan 23 2,164,072 2,164,072 2,164,072 Prepayments and other receivables 24 910,116 885,415 666,466 Short term investments 25 22,405,669 8,897,458 9,929,401 Cash and bank balances 26 4,358,261 5,050,089 3,261,322 74,917,960 56,687,947 47,359,333 Total assets 181,908,478 164,184,998 156,948,722
  36. 36. 36 Statement of Comperhasive Income Year ended Month Yaer a Ended period ended December 31, December 31, December 31 Note 2013 2012 2013 Rs ‘000 Rs ‘000 Rs ‘000 Revenue 27 81,061,355 37,033,228 55254014 Cost of services 28 (53,073,952) (24,552,328) . (41847651) Gross profit 27,987,403 12,480,900 13239249 Administrative and general expenses 29 (9,116,544) (4,184,721) 2881485 Selling and marketing expenses 30 (2,901,035) (1,312,132) 7375956 Voluntary separation scheme cost - (9,467,268) 7839617 (12,017,579) (14,964,121) 1817824 Operating profit / (loss) 15,969,824 (2,483,221) 11621425 Other income 31 4,214,290 1,580,750 207519 Finance costs 32 (346,477) (136,001) ( 207519) Loss on disposal of property, plant and equipment - (216,220) Profit / (loss) before tax 19,837,637 (1,254,692) 11413906 Provision for income tax 33 (7,141,504) 446,748 (3985736) Profit / (loss) for the year / period 12,696,133 807,944 7428170 Earnings / (loss) per share - basic and diluted (Rupees) 34 2.49 (0.16) 1.46
  37. 37. 37 Statement of Compressive Profit Year ended Year ended December 31, December 31, 2013 2012 Rs ‘000 Rs ‘000 Profit / (loss) for the year / period 12,696,133 (807,944) Other comprehensive loss for the year / period Items that will not be reclassified to profit and loss: Remeasurement loss on defined benefit plans (5,288,914) (7,426,721) Tax effect of remeasurement loss on defined benefit plans 1,798,231 2,599,352 (3,490,683) (4,827,369) Items that may be reclassified subsequently to profit and loss: Unrealized gain arising during the year / period 87,291 16,899 Gain on disposal transferred to income for the year / period (49,295) (28,087) Unrealized gain on available for sale investments - net of tax 37,996 (11,188) Other comprehensive loss for the period - net of tax (3,452,687) (4,838,557) Total comprehensive income / (loss) for the year / period 9,243,446 . ( 5,646,501)
  38. 38. 38  6.1 Ratio Analysis Current ration = Current Assets / Current Liabilities Year 2011 39011643 / 28020314 = 1.39 Year 2012 56,687,947 /27,621,334 = 2.05 Year 2013 749196017 / 38,583,250 = 2.24 Interpretation This ratio reflects the number of times short-term assets cover short-term liabilities and is a fairly accurate indication of a company's ability to service its current obligations. A higher number is preferred because it indicates a strong ability to service short-term obligations. By comparing the results of analysis years it is known that for Each 1 rupee in liability the company have 1.39 up to 2.24 times in current assets. Quick Ratio= Current Assets - inventory / Current Liabilities Year 2011 35642155 / 28020314 = 1.27 Year 2012 53753104 /27,621,334 = 1.94 Year 2013 71242646 / 38,583,250 = 1.84
  39. 39. Interpretation This ratio, also known as the acid test ratio, measures immediate liquidity - the number of times cash,accounts receivable, and marketable securities cover short-term obligations. A higher number is preferred because it suggests a company has a strong ability to service short-term obligations. By comparing the figures of analysis years, the ratio is increasing in 2012 as compared to 2011. 39 Leverage Ratio= Total Debt / Total Asset Year 2011 10171530 / 152519860 = 0.66 Year 2012 24188065/321133710 = 0.75 Year 2013 18596301/ 181908478 = 0.1022 Interpretation Leverage equivalent to solvency or long-term debt. Solvency is a company's ability to meet its long-term obligations as they become due. An analysis of solvency concentrates on the long-term financial and operating structure of the business. The degree of long-term debt in the capital structure is also considered. Further, solvency is dependent upon profitability since in the long run firm will not be able to meet its debts unless it is profitable. These ratios help in measuring the financial contribution of the owners compared with that of the creditors, also the risk of debt financing. Working Capital = (Current Assets - inventory - Current Liabilities) Year 2011 39011643 - 28020314 = 10991329 Year 2012 56,687,947 -27,621,334 = 29066613 Year 2013 749196017 -38,583,250 = 36334710
  40. 40. 40 Interoperation Working capital is equal to current assets less inventory less current liabilities. Current assets are those assets that are expected to convert into cash or used up within 1 year. Current liabilities are those Liabilities that must be paid within 1 year; they are paid out of current assets. Net working capital is a safety cushion to creditors. Accounts Receivable to Working Capital = Trade Accounts Receivable / (Current Assets - Current Liabilities) Year 2011 15104032 / 10991329 =1.37 Year 2012 20434099 /29066613 =0.703 Year 2013 18660612 / 36334710 =0.513 Interpretation This ratio measures the dependency of working capital on the collection of receivables. A lower number for this ratio is preferred, indicating that a company has a satisfactory level of working capital and accounts receivable makes up an appropriate portion of current assets. Inventory Working Capital=Inventory / (Current Assets - Current Liabilities) Year 2011 3369488/ 10991329 = 0.030 Year 2012 2934843 / 29066613 =.0101 Year 2013 3675314 / 36334710 =0.1011
  41. 41. Interpretation This ratio measures the dependency of working capital on inventory. A lower number for this ratio is preferred indicating that a company has a satisfactory level of working capital and inventory makes up a reasonable portion of current assets. 41 DEBT TO EQUITY RATIO= Total Debt / Total Equity Year 2011 10171530/ 98292471 = 0.1034 Year 2012 24188065 / 198504127=.0121 Year 2013 18596301 / 100872259 =0.184 Earnings per Share = Net income/No of ordinary shares Year 2011 7458760/ 5100000= 1.46 Year 2012 807944/ 5100000=.016 Year 2013 12698188 / 51000000 =2.49 Interoperation Earnings per share indicate the amount of earnings for each common share held. Earnings per share are useful indicator of the operating performance of the bank. The company earning per share are generally of interest to present or prospective stockholders and management. The Earning per Share (EPS) represent the number of rupees earned on behalf of each outstanding share of common stock.
  42. 42. 42 Gross Profit Margin Ratio = Gross profit / Sale Year 2011 13439249 / 55254014 = 24.32 % Year 2012 12,480,900 / 37,033,228 =3370 % Year 2013 27,987,403 / 81,061,355 =34.52% Interpretation The PTCL is constantly showing a good gross profit margin ratio. During the year 2013 its gross profit margin has maximum value. The gross profit margin reveals the percentage of each rupee left over after the business has paid for its goods. The highest the gross profit earned the better. Gross profit equals net sales less cost of goods sold. Net Profit Margin Ratio = Net income / Sale Year 2011 7458760/ 55254014 = 13.48% Year 2012 807944 /37,033,228 =12.20% Year 2013 12698188 /81,061,355 =15.66% Interpretation The ratio of net Profit after tax to net sales is called the Net profit margin. It indicates the profitability generated from revenue and hence is an important measure of operating performance. PTCL has shown a good improvement in its Net profit margin ratio. During the year company has shown a phenomenal growth.
  43. 43. 43 Sales to Assets= Sales / Total Assets Year 2011 55254014 / 156948722 = 35.20% Year 2012 37033228 / 164184988= 22.55% Year 2013 81061355 / 181908478= 44.56% Interpretation This ratio measures a company's ability to produce sales in relation to total assets to determine the effectiveness of the company's asset base in producing sales. A higher number is preferred, indicating that a company is using its assets to successfully generate sales.
  44. 44. 44  6.2 HORIZONTAL ANALYSIS This technique is also known as comparative analysis. It is conducted by setting consecutive balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in individual categories on a year-to-year or multiyear basis. The most important item revealed by comparative financial statement analysis is trend. A comparison of statements over several years reveals direction, speed and extent of a trend(s). The horizontal financial statements analysis is done by restating amount of each item or group of items as a percentage. Such percentages are calculated by selecting a base year and assign a weight of 100 to the amount of each item in the base year statement. Thereafter, the amounts of similar items or groups of items in prior or subsequent financial statements are expressed as apercentage of the base year amount. The resulting figures are called index numbers or trend ratios. Formula = Current Year amount / Base Year amount * 100. Horizontal analysis of Statement of Financial Position Rupees in „000‟ ASSETS 2011 %age 2012 %age 2013%age Fixed assets 100% 95.57 99.57 Long term investments 100% 117.91 117.91 Long term loans and advances 100% 84.88 48.04 Stores,spare and loose tools 100% 87.10 109.07 Trade debts 100% 167.92 202.75 Short term loans and advances 100% 581.75 1116.12 Accrued interest 100% 109.93 131.08 Recoverable from tax authorities 100% 138.29 123.96 Recevables from govt. of pakistan 100% 100 100 Short term investments 100% 336.72 847.94
  45. 45. 45 Liabilities 2011 % 2012 % 2013 % Long term security deposits 100% 72.15 71.46 Deferred income tax 100% 57.58 74.81 Employees retirement benefits 100% 192.73 196.46 Deferred government grants 100% 109.92 141.07 Trade and other payables 100% 112.1 156.55 Share capital 100% 100 100 Reserves 100% 100.89 101.74 Unappropriated profit 100% 86.93 113.55 Horizontal analysis Profit & Loss A/C: Particulars 2011 % 2012 % 2013 % Revenue 100% 67.02 146.71 Cost of services 100% 58.71 126.92 Gross profit 100% 95.10 208.25 Admin & selling expenses 100% 56.92 124.43
  46. 46. 46 Operating profit 100% 21.36 137.42 Profit before tax 100% -96.42 173.8 Profit for the year 100% -97.09 170.92 Earnings per share 100% -10.95 170.55  6.3 VERTICAL ANALYSIS Vertical analysis is a technique for identifying relationship between items in the same financial statement by expressing all amounts as the percentage of the total amount taken as 100. In a balance sheet, for example, cash and other assets are shown as a percentage of the total assets and, in an income statement, each expense is shown as a percentage of the sales revenue. In Vertical analysis, various components of the financial statements are standardized by expressing them as a percentage of some bases. Examples of common-sized statements include: Components of the balance sheet expressed as a percentage of total assets Components of the income statement expressed as a percentage of sales or Interest earned Formula: The formula for Vertical Analysis is: Individual item of financial statement/Total of items head *100 Vertical analysis of Statement of Financial Position Rupees in „000
  47. 47. 47 Particulars 2011 % 2012 % 2013 % LIABILITIES Long term security deposits 0.30 0.33 0.29 Deferred income tax 1.65 1.75 2.06 Employees retirement benefits 20.65 19.74 18.16 Deferred government grants 2.33 2.43 2.82 27.82 Equity & share capital 27.36 27.36 Trade and other payables 14.77 16.82 21.21 TOTAL LIABILITIES 164,184998 Rs. 181,908,478 Rs. ASSETS % % % Property $ plant 58.84 54.71 47.94 Intangible assets 1.99 1.78 2.83 Long term investments 4.33 4.20 4.28 Stores spares and loose tools 2.21 1.89 2.02 Trade loans 6.01 5.59 10.22 L oans and advances 0.38 0.87 3.59 A ccrued interest 0.33 0.27 0.36
  48. 48. 48 Recoverable from tax authorities 8.24 11.33 8.56 Receivables from govt. of Pakistan 1.42 1.38 1.18 Prepayments and others receivables 0.2 4 0.4 2 0.5 0 Short term investments 1.73 6.32 12. 32 Cash and bank balance 5.0 0 2.0 7 2.3 9 TOTAL ASSETS 152,519,860 156,94 8,722 181,90 8,478 PROFIT & LOSS ACCOUNTS particulars 2011 2012 2013 % % % REVENUE 55254014rs 60038254rs 81061355rs Cost of services 75.67 74.78 65.47 Gross profit 24.32 25.22 34.53 Admin & selling expenses 17.48 17.07 14.83 Operating profit 21.03 19.13 19.70 Profit for the year 13.44 12.01 15.66 Interpretation: Assets analysis In balance sheet of bank the most important item is earning assets. There are four earning assets. Bank has strong earning assets like advances investments and lending to financial
  49. 49. 49 institutions has major percentage in of assets of bank. There was a slight increase in the year 2013 as compare to the years 2011& 2012, of 12%. %. In cash and Landings increasing trend and investment increases in 2012 28 % and decline in 2013 2% as compared to last years. Advances decreases in 2012 and 2013 in liability deposits of the bank increases as compared to last years 2%. The operating fixed assets of National Bank of Pakistan shows a percentage of 2% in the year 2011. There was a slight decrease of 1% in 2013; the other assets of The Bank of Punjab fluctuate during all years. The percentage of other assets is decreased to 6% in the year 2013 Liabilities & Equity analysis The bills payable by National Bank of Pakistan indicates a stable percentage. The borrowings are increased in 2013 shows a percentage of 3%. The deposits and other liabilities of National Bank of Pakistan increased during all years. The share capital of Bank of Punjab shows a mixed trend in all years. It was 10% in 2012 and shows an increasing trend of 13% in 2013. The inappropriate profit & Reserves of The Bank of Punjab is increased during all years. Vertical analysis of Profit & loss account Rupees in „000‟ Particulars 2011 % 2012 % 2013 % Mark–up / return / interest earned 100% 100 % 100% Mark–up / return / interest expensed 49% 52% 51% Net mark–up / interest income 47% 49% 49% Provision against non performing advances-net 14% 8% 6% Provision for diminution in the value of investments – net .9% 3% 4% Impairment of goodwill .1% Provision against off balance sheet .1% -.oo2%
  50. 50. 50 Obligations 15% 11% 10% Net mark–up / interest income after 33% 40% 39% Provisions Non -mark–up / interest income Fee, commission and brokerage 11% 13% 11% Income Dividend income 3% 1% 2% Income from dealing in foreign 4% 2% 3% Currencies Gain on sale of securities – net 6% 3% 2% Unrealized gain on revaluation of Investments .01% % 0.1% Share of loss from joint ventures (.1)% .009 0.1% Share of profits from associates .02% 0.1 % .1% Gain on revaluation of previously .2% Equity interest Other income .7% 2% 3% Total non–mark–up / interest income 24.5% 20% 21% 57% 58% 60%
  51. 51. 51 Administrative expenses 29% 31% 32% Other provision – net .8% .2% 0.6% Other charges .7% .1% 0.2% Total non–mark–up / interest expenses 31% 30% 33% Extra ordinary / unusual item 27% 28% 28% Profit before taxation 11% 11% 10% Taxation – Current year (5)% (1)% .3% – Prior years (1)% (3)% (9)% – Deferred 4% 7% 9% Profit after taxation 23% 20% 19% Share Holders Equity & Liabilities By comparing the data from 2011 to 2013, it is clear that reserves are increasing with respect to base year 2011, but in 2013 the value is reduced as compared to 2012. The reason is that during this year, the capital of the company remains same, reserves increase but the value of profit decrease during this year, which affects the overall value of 2011. Non-current liabilities are reducing during the analysis years with respect to base year. During the years, Suppliers credit, deferred taxation and long term security deposits are reduced but the retirement benefits increased in 2012, which affects the overall value of this year. By comparing the figures of Current Liabilities of these years w.r.t base year, it is clear that during the year 2011-2012Payables / Borrowing increase gradually with respect to 2011 but the Interest and Mark-up accrued, Taxation decreased with respect to base year. The overall value of Current liabilities decrease w.r.t base year. The overall value of Equity and Liabilities remains less during the years 2011 and 2012 but in 2013 increase to some extent. This shows the stability in Equity and Liabilities during these years.
  52. 52. 52 Total Assets The overall value of Fixed Capital decreases with respect to base year. The value of Property, Plant, and Equipment during these years' decreases but the value of Capital work in progress increased during 2012-13. On the other hand the value of Intangible assets increases much more during 2013. The overall value of the long term investment and loans increased with respect to base year 2011. During the year 2013 this value reduces 127.97 from 147.19 in 2012. The reason behind this that during 2012, there was not as such investment occurred and value of loans also reduced as compared to previous years. The overall Current Assets decrease during the year 2012 but increase during the year 2011. This shows that in 2013 the Receivables are almost double but Cash is much less as compared to 2012. Hence overall situation is not as good as compared to base year. Profit And Loss Account From horizontal balance sheet, it is clear that Revenue of the company is increasing in the coming years with respect to base year 2002. This increase in value of Revenue shows that company is moving in the right direction and showing best results for investors and stockholders. Operating cost is increasing with respect to base year with the passage of time. Comparison shows that operating profit is increased every year with respect to base year. In 2005 Operating Profit was maximum but in 2006 this decrease from Rs. 137.11 million to Rs. 118.88 million. The overall value of Profit is increasing during the analysis years. Maximum profit occurs during 2005 but it reduces its value in 2006 as compared to 2005. Result The overall Horizontal analysis shows that the company is in good condition for its stock holders and the persons interested in this organization. The company is in running in profit situation. There is increase in profit in the next coming years. In 2005, the company gets maximum profit while in 2006; there is decrease in the value of profit as compared to 2005. The reason behind this is the uncertainty in the process of privatization scenario, increase in the operating cost, decrease in inappropriate profit, increase in payables, increase in capital work in progress, less new investment and loans etc.
  53. 53. 53 Vertical Analysis / Comments In vertical analysis, a significant item on a financial statement is used as a base value, and all other items on the financial statement are compared to it. Vertical analysis is used to disclose the internal structure of an enterprise. In performing vertical analysis for the balance sheet, total assets and Total Equity & Liabilities are assigned 100 percent. Each account is then expressed as a percentage of these values. In profit and loss account, Revenue is given the value of 100 percent and all other items are evaluated in comparison to this Revenue. All this is done for the purpose of evaluating financial position of PTCL. Ptcl & Stock Market PTCL is the largest listed stock in Pakistan in terms of market capitalization & represents more than 30% of the total capitalization of the Karachi Stock Exchange (KSE). PTCL's free float is around 11.76% or 600m shares, 83% of which were initially issued in the form of GDRs. Initially, only one-way convertibility was possible in PTCL's GDRs (i.e., from GDRs to locally listed shares), but now government and the central bank have allowed two-way conversion. Shareholding Structure Of Ptcl PTCL's paid-up capital is 51 billion rupees; divided into 3.774 billion classes "A" ordinary shares (74%) and 1.326 billion class "B" ordinary shares (26%). The class "A" share is listed on the all three stock exchanges of Pakistan, while class "B" share are not listed and have been earmarked for future sale to a strategic investor. Class "B" share are currently sold to UAE company Etisalatt, which take over the charge in March, 2006 and these "B" shares have four voting rights against one voting right per class "A" share. The government has sold 11.76% equity of PTCL in two trenches. One million vouchers (equivalent to 100mn shares) were sold via a local IPO at Rs.30 per share. Subsequently, another 500mn shares were sold in the form of GDR's to international investors at Rs.55 per share.
  54. 54. 54 Leadership OF Ptcl in the Market PTCL is leading company in the market, Till December 2002 due to its monopoly status in the country and was the sole and largest Telecommunication services provider in Pakistan. Now there are five other companies in the market. PTCL aims at using the latest technology for its services. PTCL is also inducting professionals in the field of engineering and information technology. It is also getting consultancy from international companies in order to remain leader in telecommunication sector. Adequate Financial Resource PTCL earns billions of rupees as profit each year and has enough money in its general reserve. PTCL also has debt as a major source of Capital. These adequate financial resources not only enable the company to cope with any unexpected event but to deploy its resources to increase product line and services without feeling any financial difficulty. Flexibility In Operation Because of its adequate financial resources and leadership in the market, PTCL has flexibility in changing its operations. Marketing department responds to the customers whenever they contact and ask problems. So, marketing department acts freely and independently. But for coming days PTA has issued licenses to many companies for installation of WLL (Recently World Call is in the market) technology switches, surely PTCL has to face these competitors
  55. 55. 55 Chapter No.7 7.1 Conclusion No doubt PTCL is enjoying monopoly but the time is came when competition will forceCompany to change its policies to become favorite telecom service provider in theMarket & keep its current place & customer base. The company maintains a leading position in Pakistan as an infrastructure provider toothier telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network On the Long Distance and International infrastructure side, the capacity of two SEA-MEWE Submarine cable is being expanded to meet the increasing demand of International traffic.PTCL should immediately change its Finance upper level of hierarchy and should stream line in the good manner. PTCL encourage the Billing On line system that each and every customer has to pay his/her bill on line basis. The system of E-PAYMENT which although exist in PTCL finance system but there is need of improvement this facility. The image of PTCL being leading Telecom providing is not good in the eyes of commonCustomer especially there are lot of complaints about the including the bogus local calls in the monthly bills of various customers. PTCL also provide the detail of local calls made from any Land Line Number which would be provided in Micro level to the customer. Faulty Telephone connection Fault Free within 24 hours in order to maximize the Revenue, as Revenue of PTCL should sacrifice at the cost of Faulty Telephone.PTCL should make Customer Care Centers in remote areas. I have to express my experience of internship in PTCL I would briefly say: PTCL is a good Organization in the way that anybody can join it for his/ her long-termcareer. Overall working environment is comfortable. Management of branch cares a lot of its employees and considers them as the Asset of PTCL. Behavior of senior executive of bank is very polite and
  56. 56. they are caring about the individual’s career and their growth. PTCL needs innovative service offerings — currently it doesn’t even offer bundles or a single bill. It is said that the best assets of a company go home to their family in the evening. Can the culture of PTCL be changed to a performance and service-based organization? According to the latest director’s report from PTCL the “organization is being revamped”. Only time can tell the impact. However management is very demanding about the targets but good reward at the achievement of assigned targets is awarded. Employees at PTCL are quite efficient. Its employees have to bring their org among the list of good. It also shows their loyalty, commitment to organization. Employees are given the benefits like bonus, gratuity funds, loans, increments, and medical. All the customers are entertained individually. Same kind of behavior and attention is given to all the customers. Getting ideas for improvement from customer side is a new idea and that is working very well in PTCL. All the customers are asked to fill a suggestion form and the standards of the org are improved through them. So far my learning is concerned; all the employees at branch were quite cooperative. They helped me to understand the activities of a org to possible extent. Their good attitude gave me more confidence to learn more and to ask if I have any query in my mind. Besides there ever going activities they never get irritant by my questioning. I had made an honest efferent to present the working & operation of PTCL in simplest way. I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with experienced cooperative & intelligent staff. 56
  57. 57. 57 Chapter No 8 Suggestions and Recommendations  No doubt P.T.C.L having the monopoly in providing the Land-Line Telephone connection in Pakistan and its playing its role magnificently. In current scenario P.T.C.L has increases its Revenue quite dramatically and probably that as soon as this organization has become privatized it will flourish its revenue in better manner.  PTCL should immediately change its Finance upper level of hierarchy and should stream line in the good manner.  PTCL should also encourage the Billing On line system that each and every customer should have to pay his/her bill on line basis..  The image of PTCL being leading Telecom providing is not good in the eyes of common customer especially there are lot of complaints about the including the bogus local calls in the monthly bills of various customers. PTCL should also provide the detail of local calls made from any Land Line Number which would be provided in Micro level to the customer.  Should be decreased the over number of employees.  Should be developing the training and development process of every employee.  The punching system of Billing through automation attach with main branch he takes so much time to adjust so it should be revived.  PTCL is not utilizing its surplus profit in long-term investment projects which be done.  PTCL management should give concentration towards the Securities of deposit and it should be on maximum level.  The return on deposit should be checked accordingly.  The cash generated from the operation must be utilized accordingly.  Each Region should allocate the funds at its own level.  PTCL should take the services of highly qualified financial analysts.  In every organization; In PTCL this is not going well. So there is an immense need to improve this department.
  58. 58.  The promotion system in the Finance & Revenue wing should be revived in true manner  All promotion must be made strictly on merit.  Each Region should maintain Profit & Loss and Balance sheet and the statement of Cash 58 inflow and outflow.  Hundred percent computerization in PTCL would be helpful to save the time and money and provision of quick services to its valued customers. Human resource development is a key component

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