sehrish PTCL report

Pakistan Telecommunication
Company Limited
INTERNSHIP REPORT
Feel the Difference

2
Sehrish kanwal
FA11-BBA-099
8TH
SMSETER

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(PTCL) Pakistan Telecommunication Company
Limited
Objective of internship at PTCL
The objective of this study is not only to fulfill the requirement of academics but
also to gain experience and how to implement study in practical way. And also
learn all the subjects in practical life.
Executive summary
I have done my internship at PTCL main head quarter Islamabad. The main reason of
choosing PTCL for internship purpose was to gain much and more experience as it is
service company and main head quarter so switching from department to department to
gain more experience. Here I got little bit information about telecom sector that how it
operates in Pakistan history of telecom sector in Pakistan and how it spread all over
domestic as well as international level. As mission of PTCL is to provide high quality
service all over areas and improve its service quality at domestic and international level.
Different products and services provided by PTCL include wire land as well as wireless
internet base services and technologies smart TV, EVO, 3G & 4G, corporate sector
services as PTCL provide platform to larger companies to connect at international level
as well as domestic northern areas by adopting its services. I have done my work in
accounts and finance department because my specialization is in finance here I prepared
financial ratios of PTCL and historical and vertical analysis. I also learned about different
types of customers these are involve general customers, business customers, corporate
level customers. I also came to know that what type of departments are work under
accounts and finance department include selling department, cost center, asset
management. I also done some work on SAP which is software used by many larger
companies in which data we have to enter required information related to check payment
to vendor or to employee. If in document employee number shows its mean that we have
to work for employee if there is not mention any employee number than this shows that
we have to done transaction for vendor. So in basic data they asked vendor name with
help sign we can take help by click on it a new window will open here we write the name
of person and click enter the vendor code will automatically generate but for employee
the code is available on document and we no need to take help the next step is date which
required document date than reference in reference for employee we enter code for
vendor we enter bill no or invoice number than enter the amount after this we also have
to fill the purpose that for what reason we are doing this. Than come in below window
and fill other data the GL account number of employee or vendor than in cost center

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basically enter the department code of company in which the employee work and bill is
made. Where the profit center is the same for all 1100 in text we write the same thing like
above person Colum is for employees of PTCL workers. At end I have closed by
analyzing companies’ strengths weakness opportunities and threats than give them some
recommendations.

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Table of Contents
1. Introduction…………………………………………………..6
1.1 Mission statement………………………………………………………….6
1.2 Company Background (History) …...……………………………………..7
1.2.1 Objectives …………………………...……………………….7
1.2.2 Organizational Structure …………………………………….8
1.2.3 Products or Services Offered ………………………………..8
1.2.4 Product/Service Details (A) …………………………………8
1.2.4 Product/Service Details (B) …………………………………9
2. Learning & Experience…………………………….......10
2.1 Details of Training department wise/ Tasks performed ……11
2.1.1 Task Performed (Accounts dep) …………………12-18
2.1.2 Task Performed (payment dep) ………………….18-34
2.2 SWOT Analysis of organization ………………………..….35
2.3 Recommendations ………………………………………….36
Conclusion …………………………………………..…36
References …………………………………………...…36
Acknowledgements ………………………………….....36

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1 INTRODUCTION TO PTCL
PTCL is an abbreviated form of Pakistan Telecommunication Company limit.PTCL is the
main communication authority of Pakistan which is owned by government and partly
private company. PTCL has 2000 branches in whole country with the largest landline
structure in the region. The services afford by PTCL includes landline phone, broadband
services, EVO, EVO 3G, smart TV, V-fone and ufone mobile services as subsidiary. The
division of investment in company is 62% of government and 26% owned by Etislat
telecommunication under the privatization program run by Shokat Aziz and 12% are sold
to general public. PTCL is listed on Karachi, Lahore and Islamabad stock exchanges. It
was established to undertake the telecommunication business which is carried on by
Pakistan Telecommunication Corporation (PTC). The business was converted to the
company on January 1, 1996 under the Pakistan Telecommunication (Reorganization)
Act, 1996 at which date PTCL had take over all the properties, rights, assets, obligations
and liabilities of PTC except those rights transferred to National Telecommunication
Corporation (NTC) , Frequency Allocation Board (FAB), Pakistan Telecommunication
Authority (PTA) and Pakistan Telecommunication Employees Trust (PTET). Pakistan
Telecommunication Company Limited is the main provider of Telecommunication
services in Pakistan. It owns a substantial part of the telecommunication facilities and
provides domestic and international telephone services and other communication
facilities allover Pakistan
1.1Mission statement
To achieve our Vision by having
 An organizational environment that have motivation reliability and friendly
environment for employees and external visitors.
 Environment which should cost effective and their main objective is to
provide good quality. Services that are based on the most optimum
technology.
 Growth of company and profitability of shareholders should considered
most.
1.2 BRIEF HISTORY OF PTCL: The history of PTCL is very old and before the

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independence the telecom sector was under the Indian post. The role of telecommunication in
Pakistan can broadly divided into four pieces.
Pakistan post and telegraph: in Pakistan the telecommunication service were handled
by one department known as Pakistan post and telegraph(P&T) this department started its
services by having only 12346 telephones lines and seven telegraph office all over Pakistan. This
department continuous its work up to 1962 and adopted the government of India telegraph act
188 to control and direct the activities of telecommunication.
Pakistan telephone and telegraph: the first step was taken towards PTCL was in 1962
when ayyub khan government decided to divide (PT&T) sector into two separate department
Pakistan post and Pakistan telegraph & telephone under the presidential ordinance. The
responsibilities were assigned to general manager and chief engineers and general manager
reporting directly to the director manager.
PTC Pakistan Telecommunication Corporation: Corporate Pakistan
Telecommunication Corporation on December 5th 1990 the PT&T department converted into
PTC as legal identity separate from government. This corporation now respocible for all
establishment maintenance and operation of telecommunication sector telephone and telegraph
telex. Date transmission within country and establishment of international links.
Pakistan telecommunication limited: Pakistan telecommunication Company Limited
(PTCL) is a company established to undertake the telecommunication business formally carried
on by Pakistan. PTCL was converted on January 1st ,1996 under Pakistan telecommunication
reorganization act 1996 according to which PTCL took over all the properties assets rights and
obligations of PTCL. PTCL is responsible for monitoring the telecommunication business in
Pakistan. It builds rules and regulation for private telecom companies such as mobile phone
companies, internet service providers, corporate sector companies and pay card phone
companies. PTCL provide licenses to the new companies in entering to this business.
1.2.1 OBJECTIVE OF PTCL: Pakistan Telecommunication Company limited states
its objectives as under.
1. To provide quality services to its customers in Pakistan.
2. To provide maximum satisfaction to its customers by using the latest technology.
3. To increase the worth of owners.
4. To lead the telecommunication industry in Pakistan.

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1.2.2 STRUCTURE OF THE PTCL COMPANY: Organizational structure
describes the formal framework or the system of communication and authority. It sets each rule
and management position and helps to define authority responsibility and accountability.
In PTCL President (CEO) is the head of major functional areas.
CEO (President)
Under CEO there is hierarchy of PTCL designations
CFO CHRO CBDO CCCO CTO CTA CIO CMO
NOW under CFO there are elective voice presidents
EVP.FP&T EVP.A/C&
Services
EVP.Revenue EVP.Revenue
Assure
Under EVP. A/C and services there are General Managers
GM A/C .& FR GM & RP Finance GM F.A & taxation
Under GM A/C & FR there are assistant managers.
The main purpose of ptcl is allowing them to effectively and efficiently accomplished
organizational goals and objectives. Therefore they design an appropriate structure of hierarchy
that managers must know that how to coordinate work activities within organization.
1.2.4 PRODUCTS AND SERVICES OF PTCL:
From the directors’ report: On behalf of the board of directors of Pakistan telecommunication
company limited PTCL we are pleased to present the annual report and the audited financial
information for the year ended December 31,2013 together with auditors ‘report thereon
PRODUCT AND SERVICES: There are different segments of diversified services offered by
PTCL.
WIRE LINE BUSINESS: Broadband is an electronics engineering term often used to refer to
high speed Internet services. This is service which consists of Internet based that is faster than
phone-based and is always connected. DSL is one of the two leading technologies used to
provide broadband internet service.
DSL broadband performed well with 32% annual increase in revenues and crossing the
1.1million subscriber’s mark. According the ultra high DSL speed of 12 and 16Mbps were
launched during the year moreover for creating the good will for customers waiver of smart TV
monthly service charges was bundled as a special offer with 8 12 and 16Mbps broadband
packages.
Wireless business: EVO retained its strong brand position throughout the year the launch
of new and improved 3G 4G EVO tab with enhancement features and economical prices was one

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of the key success during the year 2013.additionaly new Mi-Fi devices were introduce to
improve end user experience.
(LANDLINE) BROADBAND SERVICE: Broadband is internet based service at high speed
and without having to dial the ISP number. It is very fast medium of information from the
internet as soon as you switch on your computer. The term broadband refers of the transmission
medium and its ability to transport multiple signals and traffic type at a time the medium can be
coaxial cable optical fiber DSL. PTCL broadband offers Wi-Fi services. PTCL internet base Wi-
Fi service provides broadband connectivity using multiple devices such as Desktops, Laptops,
PSP’s etc in a wire free home environment.
PTCL broadband is the fastest growing broadband service provider in Pakistan. Packages from
1MB to 50MB with different prices
LANDLINE SERVICE: landline basically is the telephone service which use cables as medium
for communication and for connections.
SMART TV: Now PTCL brings offer of smart TV for its customers its applications for PC
laptops.
As now a day most of us spend most of our time on internet for studies or office work in that
case we do not want to miss our favorite programs and dramas. For this smart TV helps us to
download our favorite shows which we can watch any time. Even if we miss out any show this
application gives us a Re-run feature of 7days through which we can watch any program at any
time. customer base of smart TV services witnessed a 113% growth.PTCL enriched the services
by increasing the number of channels from a 125 to 150 and adding advanced features include
catch-up TV.
EVO DEVICE: EVO is the country first 3G hotspot in the shape of usb modem which packs
a built in Wi-Fi router which connect to up to 5 Wi-Fi gadgets to high speed internet at one time.
a mobile hotspot Wi-Fi like EVO provides its users with a personalize Wi-Fi hotspot enabling
uninterrupted connectivity with up to 5 Wi-Fi gadgets of internet packages.
CORPORATE SERVICES: Towards this end focus continued to on enhancing business
relationship with existing corporate and enterprise customers as well as closed deals with new
once. Several products and services such as cloud computing, geographical information system
were launched specifically for the corporate sector.
PTCL SUBSIDIARIES: Ufone is the only subsidiary of PTCL Company. Since the outset it
has expended its coverage and customer base at rapid pace and establish itself as one of the
leading cellular service providers in Pakistan. Ufone now considered one of the most active and
innovative player in the mobile sector of Pakistan. PTCL is now privatize company the reason
was that most of the holding was under government and decision making authority was also with
government for this reason government make it privatize company. Now 26% its shares are with
Etisalat.

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PTCL CUSTOMER TYPES: There is the list of customers at PTCL
General customers: these are customers who are basically general public who use PTCL
service. Some of them avail voice services and some uses data services. Customers who avail
voice service include telephone and call services at homes or offices they may be domestic users
or international users. Customers who are domestic users are simply use telephone calls to their
relatives, friends directly. On other hand international users are connected through PTCL
operators on both sides.
Data service customers are those who are connected through internet who use DSL and
broadband services such as EVO smart TV.
Business customers: there are two types of business customers are carriers and corporate
customers. Carrier customers are other telecom companies such as Moblink, Warid, Zong etc.
Ptcl provide its services according to their needs such as if in backward area warid want to
facilitate its service but there are very few customers with long distance for them establishing
new infrastructure is very costly therefore they avail PTCL service (infrastructure) or tower
sharing in that area to provide service as PTCL has very large coverage and very old company
which have their infrastructure in those areas as well.
Corporate sector: this is the sector involve banks government company’s school colleges
OGDC ect. These companies avail PTCL services. Through satellites PTCL provide services
remote controlling services, providing cameras for security purpose or record maintaining in
hard dicks of different companies are services provided to PTCL corporate sectors. Dedicated
lines for domestic connection are also provided to companies. Database security facilities also
provide them. Conference calls, multimedia chat etc.
FINANCIAL REPORTING FRAMEWORK: International accounting standards as
applicable in Pakistan have been followed in the preparation of financial statements.
2 WORK DESCRIPTION: Finance is one of the very common and
important activities of all type of business. The finance department plays most important role in
determining long term objectives and evaluating the feasibility of the business. As one of the
four basic functional heads of the company the member finance generally reports directly to the
chairman.
There is further detail of accounts department at PTCL:
Selling department: basically this department is part of finance center the work of this
department is to maintain budget of all expenses gather budget for PTCL operating expense and
other salary expense. Electricity expense capital expense is arranged in this department and
remaining budget is reinvested into projects.
Letter of credit department: this department handles external issues or import and
export system of PTCL. Bank also involve in this case as if PTCL import any equipment from

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other country on account with some payment in advance. Sometimes that equipment is not match
with PTCL requirements in this case bank takes responsibility to give back all money to PTCL.
Assets management department: this department handles assets of company whether
they are long term or short term assets. Capital expenditure cost of maintaining those assets like
computer, systems, furniture, machinery, land building etc. all is managed under this department.
GM ERP (enterprise resource planning): under this department all polices and
procedure of transactions and made. What polices should follow for bill payments and when
payments are due all is done in this department. If any equipment is purchased from other
companies what rules should followed are build in this department. They also must have to fulfill
all requirements of IFRS and companies ordinance 1984 to show report of PTCL performance to
general public. After that they check the variances of planning and actual results.
Central payment center: actual payments are done in this department. Such as capital
expenditure such as maintenance of machinery equipment, salary of employees, license fee such
as 3G service payment all done in this department.
I worked as an internee in PTCL in Accounts & General Reporting department under the
Evp. A/C & services.
2.1ACCOUNT AND FINANCIAL REPORTING DEPARTMENT: Maintain
daily bases accounting entries and monthly and year bases financial report is prepared whether
the company is in lose or in profit it shows all about the performance of company. Accounts
included taxation: all the taxes such as revenues tax, service tax, sales tax, financial tax is
recorded and maintain under this section. Assets account long term short term both, liabilities,
owner’s equity, profit and loss account all prepared in this department. Balance sheet, income
statement, profit loss statement and trend analysis of company.
COMMON SIZE RATIO: One of the most useful ways for the owner of a small business
to look at the company’s financial statements is by using “common size” ratios.
COMMON SIZE RATIO FROM BALANCE SHEET: PTCL Company
30-12-2013
amount
common size
ratios
Equity
share capital and reserves
Share capital 51,000,000 28%
Revenue reserves
Insurance reserves 2,958,336 2%
General reserves 17%

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30,500,000
Inappropriate profit 16,324,138 9%
Unrealized gain on available for sale investments 89,785 0%
Total 100,872,259 55%
LIBILITIES
NON-CURRENT LIBILITIES
Long term security benefits 529,358 0%
Deferred income tax 3,749,739 2%
Employee retirement benefits 33,050,773 18%
Deferred government grants 5,123,099 3%
42,452,969 23%
CURRENT LIBILITIES
Trade and other payables 38,583,250 21%
Total equity and liabilities 181,908,478 100%
ASSETS
Noncurrent assets
Fixed assets
Property plant and equipment 87,219,249 48%
Intangible assets 5,157,172 3%
92,376,421
Long term investment 7,791,296 4%
Long term loans and advances 6,784,020 4%
Investment in finance lease 38,781 0%
106,990,518 59%
Current assets
Store spares and loose tools 36,753,14 2%

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Trade debit 18,596,301 10%
Loans and advances 6,541,852 4%
Investment in finance lease 12,927 0%
Accrued interest 667,024 0%
Recoverable from tax authorities 15,586,424 9%
Receivable from government of Pakistan 2,164,072 1%
Prepayment and other receivables 910,116 1%
Short term investment 22,405,669 12%
Cash and bank balances 4,358,261 2%
74,917,960 41%
Total assets 181,908,478 100%
IN ABOVE COMMON SIZE RATIO: Total assets and total liabilities + owner equity
are base items
Each ratio shows that this is the percent of total assets or total liabilities
Such as if we take cash and bank balance are 4358261 of total assets 181908 is=2% it shows that
we have 2% in cash of total assets.
As a small business owner, you should pay particular attention to trends in accounts receivables
and current liabilities. Receivables should not more than the limit that company sets of company
assets. If you see accounts receivables increasing dramatically over several periods, and it is not
a planned increase, you need to take action. This might mean stepping up your collection
practices, or putting tighter limits on the credit you extend to your customers.
LIQUIDITY RATIO: It shows company’s ability to cover its expenses.
There are two types of ratios are current ratio and quick ratio. Both are based on balance sheet
items.
Current Ratio = Current assets/current liabilities
Current ratio should not greater than 1.7
2013 2012 2011 2010
Current assets 74917960 47359333 39011643 45450236
Current liabilities 38583250 20548656 28020314 30192778

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1.941722 2.304741 1.392262 1.505334
The trend shows that PTCL has upward slop which means against 100% of current liabilities it
has more than 150% of current assets to meet its current liabilities.
We must focus on the company’s accounts receivables or cash value of inventory.
A current ratio can be improved by increasing current assets or by decreasing current liabilities.
There are some techniques to improve the current ratio are
Acquiring long term loans
Putting profit back into business
A high current ratio may mean that current assets are not being utilized in accurate way
QUICK RATIO: Quick ratio sees on company’s most liquid assets to fulfill current
liabilities. This ratio tests whether a company can meet its obligations even adverse situation
occur.
Quick ratio= current assets-inventory/current liabilities
In PTCL stock in trade is tools and spares which include wires telephones EVO devices credit
cards ect.
This ratio shows that the company have enough current assets to meet its current liabilities if
company exclude its trade debts.
OPERATING RATIOS: Data is taken from both balance sheet and profit and loss
statement.
INVENTORY TURNOVER RATIO: The Inventory Turnover Ratio measures the
number of times inventory “turned over” or was converted to sales during a time period. It may
also be called the Cost of Sales to Inventory Ratio. Inventory ratio is a good indication of
purchasing and production efficiency.
Inventory turnover ratio = cost of good sold/total inventory
quick ratio total current assets-totaltotal inventory/ntort/(total current libilities)
quick ratio 2013 2012 2011 2010
total current assets 74917960 47359333 39011643 45450236
total inventory 3675314 2934843 3369488 4075863
total current libilities 38583250 20548656 28020314 30192778
1.8464657 2.1619171 1.2720113 1.3703401

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Inventory days on hand ratio=once u have calculate inventory turnover ratio now we can actually
compute inventory we have per day in our hands. This also include A/C receivables and A/C
payables par day
The ratio shows that 25.27,21.81,29.41,38.78days in which A/C receivables are turned over
during the year. This is the ratio which company will match with its industry standards its
significant depends upon on cash sales a company have.
ACCOUNT RECEIVABLE TURNOVER RATIO: The Accounts Receivable
Turnover Ratio measures the number of time accounts receivable turned over during a time
period. A higher ratio indicates a shorter time between making a sale and collecting the cash.
Revenue = Sales
A/C receivables = Trade debts
inventory turnover ratio=cost of good sold/total inventory
2013 2012 2011 2010
cost of good sold 53073952 49104656 41814765 38361472
total inventory 3675314 2934843 3369488 4075863
14.440658 16.731613 12.409828 9.4118649
inventory days on hand=365/inventory turnover ratio
2013 2012 2011 2010
365 365 365 365 365
inventory turnover ratio 14.44066 16.731613 12.40983 9.411865
25.275853 21.814992 29.412168 38.780837
account receiveable turnover ratio=net sales/account receiveables
2013 2012 2011 2010
net sales 81061355 74066456 55254014 98905765
account receiveables 18596301 15402253 9434885 10385244
4.3590042 4.8088066 5.8563527 9.5236824

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The above ratios shows that in 2010 account receivables are 9.5 times are turned over as
compare to other relative years. It shows that 2010 is more effective year if we see from
receivables side as compare to other years.
But the higher ratio can also mean that in 2010 they receive very old sales on account.
ACCOUNTS PAYABLE TURNOVER RATIO: The Accounts Payable Turnover
Ratio measures the number of time Accounts Paid over a time period. Much like our previous
turnover ratios, you want to understand how long your Accounts Payable are on your books. This
is important as Accounts Payable are a “source of cash.” There is a balance between paying your
suppliers within the terms they grant you and maximizing the use of the cash in your business.
The above ratios shows that in 2010 and 2011 PTCL turned over its accounts payable more
effectively than in 2012 and 2013. It also mean that may be in 2013 and 2012 their purchases are
on cash bases.
ACCOUNTS PAYABLE DAYS: The Accounts Payable Days converts the Accounts
Payable Turnover Ratio to the number of days your Accounts Payable are outstanding. Again,
this is important as you manage your cash to make sure you have enough on hand to run your
business and keep your suppliers paid on time.
RETURN ON ASSETS RATIO: The Return on Assets Ratio is the relationship between
the profits of your company and your total assets. It is a measure of how effectively you utilized
your company’s assets to make a profit. It is a common ratio used to compare how well you
performed in relationship to your peers in your industry
accouts payable turnover ratio
A/C payable/purchases
2013 2012 2011 2010
A/C payable 10479024 7791426 34306442 33697723
purchases 3675314 2934843 3369488 4075863
2.8511915 2.6548016 10.1815 8.267629
account payable Days=365/accounts payable turnover ratio
2013 2012 2011 2010
365 365 365 365 365
A/C payable turnover ratio 2.85119 2.6548 10.1815 8.26762
128.01672 137.48682 35.849335 44.148135
return on assets ratios=profit before tax/total assets
2013 2012 2011 2010
profit before taxes 19837637 2509364 11413906 14281118
total assets 181908478 156948722 152519860 150767727
0.1090528 0.159884 0.748355 0.947226

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this ratio shows that from 1 assets PTCL Company earn profit 0.10 in 2013 and in 2010 company
was earning more profit from each dollar of asset.
DEBT-TO EQUITY RATIO: The Debt-to-Worth Ratio is a measure of how dependent a
company is on debt financing as compared to owner’s equity. It shows how much of a business is
owned and how much is owed.
Net worth = Total assets - Total liabilities
Here debt to worth ratio of all years is less than 1 which shows that PTCL have more capital
invested by its owners as compare to its lenders
WORKING CAPITAL:
Total current assets - Total current liabilities
It basically measure the cash flows
It represents the amount of capital invested in resources that are subject to relatively rapid
turnover
(such as cash, accounts receivable and inventories) less the amount provided by short-term
creditors.
Working capital should always be a positive number. Lenders use it to evaluate a company’s
ability.
NET SALES TO WORKING CAPITAL: The relationship between Net Sales and
Working Capital is a measurement of the efficiency in the way working capital is being used by
the business. It shows how working capital is supporting sales.
working capital=total assets-total libilitiescurrent assets-total current libilities
2013 2012 2011 2010
total current assets 74917960 47359333 39011643 45450236
total current libilities 38583250 20548656 28020314 30192778
36334710 26810677 10991329 15257458
debet-to-worth ratio=total libilities/net worth
2013 2012 2011 2010
total libilities 81036218 54573408 54227389 51009016
total assets 181908478 156948722 152519860 150767727
net worth 100872260 102375314 98292471 99758711
0.8033548 0.5330719 0.5516942 0.5113239

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Again, this ratio must be compared to others in the industry to be meaningful. In general, a low
ratio indicate an inefficient use of working capital of PTCL such as investing in equipment. A
high ratio can be dangerous, since a drop in sales, which causes a serious cash shortage, could
leave your company value to creditors.
Return on equity: net income/share holders equity
This ratio shows that the company holds 25% return on its total equity in 2013.
Similarly in 2012 return on equity was .3% of total shareholders’ equity and in 2011 15% in
2010 19%.
Return on equity varies from industry to industry. Therefore it is recommend to compare ratio
with previous performance of company.
In 2013 the return on equity is greater than all previous compared years because the investment
in overall three years less than 2013. This shows company’s performance is good in 2013.
2.1.2 ACCOUNTING AND FINANCE STANDARD USED BY PTCL: Before
the standards used by PTCL it is necessary to know that what type the chat of account they use in
their daily transactions.
Chart of account: it is a list of names of the accounts that a company identified and made
available for recording transactions in general ledger
In PTCL we use chart of account so that we clearly got that how much we have assets with us
and how much revenue we are generating from these assets plus our liabilities and cost if
expense is occurred from which branch and city it was occurred. In PTCL there are basically five
heads in their chart of account. These are
Assets
Liabilities
Expense
Revenue
Equity/share holders capital
There is seven digit numeric code of their chart of account which is numeric code.
Start from
1ST ASSETS: Which is further divided into current and non-current assets. In current assets
they have cash bank balance accounts receivables are involved. Where non-current assets are
further divided into
net sales to working capital net sales/net working capital
2013 2012 2011 2010
net sales 81061355 74066456 55254014 57154527
net working capital 36334710 26810677 10991329 15257458
2.2309619 2.7625731 5.0270549 3.7460059
2013 2012 2011 2010
net income 12696133 1615888 7428170 9294142
share holder equity 49782474 45677024 47261881 48758711
0.2550322 0.0353764 0.1571704 0.190615

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Technical Non-technical assets
In technical assets they have wires, cables, optical fiber, devices, software’s, EVO, buildings
based on technical structure, computer systems etc.
Where in non-technical assets involve administrative offices, buildings, furniture’s, land,
vehicles etc.
Technical further divided into tangible and non-tangibles assets.in tangibles involve machinery
base assets and in-tangible involve applications software online services etc.
Operating exp non-operating exp
OPERATING EXPENSE Involve cost of services, general and admin expense, marketing
expense. Their cost of services include salaries allowances and other benefits to employees call
center charges foreign operator charges and satellite costs fuel and power communication stores
spares and loose tools travelling expense printing and stationary expense amortization of
intangible assets etc.
Where in non-operating or admin expense also include all above expenses but from admin side
and the above expenses are include related to service side which is provided by the company to
their customers.
In marketing and selling expenses include sales and distribution charges travelling and
convincing charges etc.
Non-operating expenses are not in Ptcl Company.
REVENUE: Which involve domestic as well as international revenue. International revenue
represents revenue from foreign network operators for calls that originate from outside Pakistan.
And has been shown net of interconnected costs relating to other operations and access
promotion charges.
EQUITY AND SHARE CAPITAL: Gain revenue from authorized share capital and issued and
subscribed and paid up capital. These shares were first issued to government of Pakistan in
considerations for the assets and liabilities transferred from Pakistan telecommunication
corporate to PTCL under act 1996.
These all above are the general ledgers which assigns the 7digit code to each GL.
In PTCL chart of account there is also one cost center and profit center.
Cost center is 5 digit numeric code which indicates the function of assets and liabilities means
from where expense take place include technical expense or non-technical tangible or in-tangible
expense and the nature of expense. It also represent the location of assets or expense that in
which branch/city this expense took place.
Non-current assets
Expense

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Example: PTCL purchase 3G license for 30 billion and in cash payment is 25 billion and
remaining 5billion is on account. We first see that is this long term liability or short term than see
is it technical or non-technical than see intangible or tangible than we finally add in general
ledger which contain such specification with its digital code. It is also focus that in which city
this expense occur such as in Islamabad in which branch let in head quarter in which department
let in finance department now what kind of expense occur let computer systems change now this
expense is recorded with its code to its ledger account.
ACCOUNTING AND FINANCIAL STATEMENTS: Financial statements have been
prepared in accordance with the approved accounting standards as applicable in Pakistan
approved accounting standards comprise of such international financing reporting standards
IFRS issued by the international accounting standards boards are notified under the companies
ordinance 1984.
SAP: I have done some work on sap in payment department. in this department we learned
about the transaction of bills such as refreshment bill of employee or if anything purchase for
personal use the record and online bill payment are recorded in this department. if machinery
purchased than how to pay the vendor all are done in this department.
To record the transactions PTCL use the software known as SAP it was implemented after the
privatization of PTCL. It is internationally recognized software used in most of the
organizations. There were some authorized transactions related to each individual employee and
was only authorized to specific user in the department. I used to work on some specific T-codes
for the learning purpose that how actually it works and all the transactions are passed.
SET OF GENERAL LAGER
First sir told us the difference between PARK and POST in SAP
PARK: While using sap the user can edit the entry any time he can view it and all the
process is visible to him. Whatever he done all the entries accounts are unhide for him. Park is
used by all the employees by using their own ids.
POST: In post when user enters the data it is invisible to employee and he cannot edit in
it. The user can only enter the data reserve it but cannot change it.POST is in access to the top
manager of accounts department.
CENTRAL PAYMENT: In central payment department there is preparation a list of
those bills which have to pay by vendors or employees suppose an employee take
refreshment his bill is prepared through online process which is done in this department
similarly if any department purchase something like furniture chair or computer system
than the list of bill is prepared in this department.
For parking in PTCL we use code FV60 to enter in SAP system. After enter there is a window
will open there are options in this window involve

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1st Basic data: in basic data we have to enter required information related to check payment to
vendor or to employee. If in document employee number shows its mean that we have to work
for employee if there is not mention any employee number than this shows that we have to done
transaction for vendor. So in basic data they asked vendor name with help sign we can take help
by click on it a new window will open here we write the name of person and click enter the
vendor code will automatically generate but for employee the code is available on document and
we no need to take help the next step is date which required document date than reference in
reference for employee we enter code for vendor we enter bill no or invoice number than enter
the amount after this we also have to fill the purpose that for what reason we are doing this.
Than come in below window and fill other data the GL account number of employee or
vendor than in cost center basically enter the department code of company in which the
employee work and bill is made. Where the profit center is the same for all 1100 in text we write
the same thing like above person Colum is for employees of PTCL workers.
Now in this section there are also many options to have filled but for bill payment we only have
to write national bank because all the transactions are done with national bank.
Details: in details window only detail of employee or vendor will appear that weather the
information is true or not.
Workforce: leave this page as it is.
By feeling necessary options than click the button simulate the entry is now completed we save it
after saving the document number will appear on bottom of page we will keep that number with
us. This is parking of any entry. For cash payment the same procedure is followed but it is
opened with FBCJ. For posting the head of department gives authority to their workers to do post
after completion of task so employees have to enter in posting by using his ID and password.

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TO CREATE VENDOR: If there an employee or vendor’s bill come who have no vendor
account than there is process to create their vendor because SAP does not accept any entry
without vendor account. It required basic personal information to fill the branch code of PTCL
which is 1100 than name, address, pox number of person, mobile or landline number of person,
NIC number, city name, county code. After fill these above information click enter now vendor
account of that person is created.
CHECK CREATING AND CHECK PRINTING DEPARTMENT: In this department check
are created of employees expenses or any tour, hostelling, hotel expenses. For example if any
employee goes on his business tour out of city and stay in hotel than all the expenses during his
stay is recorded and check is created against these expenses.
So by using SAP we use code F-58 to create check after enter a window will open here we check
the company code which is 1100 of PTCL than check payment method should C than most
important is check lot number if we creating 74 check than there must prepared 73 checks in
record this told us that all process is going smoothly. Our work start from option AMOUNT in
this box we enter 1 as hidden code than in next row there is option of TEXT we enter text from
recipe of bill of employee’s expense. In VENDOR option enter the vendor code or number
which is also given in slip of expense. After completion of these three headings we go above
option given as ( process option head) a new window will open here we have to match document

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number shown in window and doc number shown in slip of employee which we have in hands
after this we go to the option post after post a new window open here in (-1) we double click
automatically new window will open here in amount option we enter (*) than enter amount will
show here now go to view option looks like mountain sign now new window appear here go to
above option (document than simulate option) here all details of slip appear we mach document
number and amount go to view option a new window open with system generated document
number we save that number and put the check into printer and pass the print command the
check now printed and we match print number on check and check own number if they match
this shows our process is successfully done.
STEPS OF CHECK CREATING AND CHECK PRINTING:
Only fill amount as 1, than text which is available in slip of bill than vendor number than go
option process open item in above.decument date should also match.

26
After click on process option this window will open here we match the document number with
the given slip number if match than go to next process and double click on Cash discount colum
new window will open.

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Here we enter * button and enter

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When we put * automatically the amount will appear which is also shown in bill slip of vendor.

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Here we go to view option to know that are we doing right or not

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After conformation we go option document than simulate

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2.2 SWOT ANALYSIS OF PTCL: Every company has its own strengths weakness
opportunities and threats
STRENGTHS:
Largest network of pakistan within infrastructure and information and telecommunication
technologies.
PTCL has monopoly all over Pakistan in telecom sector.
PTCL (Ufone) is market challenger in GSM segment.
PTCL ufone subsidary is performing very well in market as it is growing rapidly and its
market share and strength is strong as compare to other companies such as warid and
telenor.
Competitors and most of the companies are still depend upon PTCL network either
directly or indirectly.
Experienced and technical workers and resources are available.
WEAKNESS:
There is monoply of PTCL as there are no competitor from where they can teach how to
satisfy their customers fully.
Paknet the internet service provider to PTCL loss its strength because of poor
management and lack of internet optimization.
There is over employment and low productivity.
Allocation of resources is very poor.
OPPORTUNITIES:
PTCL have opportunity by having huge market size
Local handsets are manufactured PTCL phones and mobiles are made at domestically.
Technology based services are made in PTCL is accessible to customers such as EVO,
smart phone.
PTCL adopt latest technologies
Capture broadband internet service market.
THREATS:
Exposure to market competition
Instability in polices of governments regarding the nationalization.
Too much employee’s strength

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2.3 Recommendations:
My recommendations for the department of finance and accounts is to improve the
working area for employees secondly daily checkout the attendance and daily target of
employees performance other recommendations are standardize rules should be
applied to all employees from the high post to low level post so that employees get
motivate toward their work. There is more employees as compare to required so they
should keep only those employees which are essential for their projects.
Conclusions: in PTCL I have learned a lot that how practically things goes and how
implement our knowledge in practical way I learned that how service company is
operate and how its financial reports are prepared types of customers and their
demands at corporate level how companies operate. Also done some work on sap how
use system to enter data in it.
2.4 References: Official website of PTCL
2.5 Acknowledgement: first of all I would like to thanks ALLAH Almighty the most
beneficent for giving me ability and courage and capability enabling us to complete this
internship report on Pakistan telecommunication limited.
I would like to thanks Mr.Khalid Daud senior manager CWIP & FA at PTCL.FOR
allowing me to work under this department I would like to thanks other staff for sparing
their value able time for me to teach how to learn from different techniques
Last but not the least I would like to thanks comsats department of management
science to provide this awareness to do work practically and earn knowledge by
spending some days with different companies.

sehrish PTCL report

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