INTERNSHIP REPORT ON PTCL

Pakistan Telecommunication Company Limited

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Supervisor : Mr. M.Yasin Zia

Submitted By:

Session: 2018-2020

Class: M.com(Finance)

Institute of Business Management Science

Faculty of Social Science

UNIVERSITY OF AGRICULTURE FAISLABAD

Preface:

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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.

Acknowledgement:

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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.

I am also very thankful to all the managers and staff members of revenue and finance department of
PTCL for their co-operation to complete this report.

After all special thanks to my institute for giving me opportunity to show my ability in this small
effort.

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 EXECUTIVE SUMMARY

By the grace of almighty God, I have completed my 6 weeks internship as per

requirement of M.com course successfully. I was appointed at PTCL Office
Sargodha road. I feel my self-lucky to have worked with such a cooperative,
dedicated, result-oriented team. They all helped me in every possible way they
can. I was happened to work in FINANCE DEPARTMENT and REVENUE
DEPARTMENT.
The company maintains a leading position in Pakistan as an infrastructure
provider to other 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.
This report is being started with the brief and complete introduction of
organization, its historical background, its services and its products offerings.
In this report organization structure is discussed as per the requirement of
internship. What is the hierarchy in the organization as well as working of
various departments are concisely discussed.
The real purpose of this study is to provide an opportunity to the students to see
the practical applications of their background professional studies.
In preparation of this report I have tried my best to provide all possible
information about the operations, functions, tasks and the corporate
information of PTCL Pakistan in brief and comprehensive form.
Study ends with some recommendations after identification of problems that I
observed during our analysis in the concerned department.

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Table of contents:
Preface
Acknowledgement
1) Introduction to PTCL
 History of PTCL
 Historical background
 Vision statement
 Mission statement
 Objectives of PTCL
2) Organization Structure
 Organizational structure
 Board of directors
 Main offices
 Headquarters
 Departments of PTCL
 Competitors of PTCL
 Mobilink
 Telenor
 Zong
 Number of employees
 Types of employees
3) Internship Activities

RevenueDepartment:

 How Revenue is generated byPTCL

 PTCL Billing and Customer CareSystem
 PTCLE-Reporting.

Finance Department

 Work being performed in Financedepartment.

 Procurement.
 Procurement Term & VoucherType.
 SAP.
4) SWOT analysis
5) FINANCIAL ANALYSIS

6) RECOMMENDATIONS &Conclusion
 Recommendations for theCompany
 Recommendations for FutureInterns
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  Conclusion

CHAPTER NO: 1
Introduction to PTCL:
PTCL is abbreviated from of Pakistan Telecommunication Company limited and is the back bone of
the country regarding telecom. The PTCL is the main communication authority in Pakistan which is
partly government owned and partly privatized entity. The organization works for the improvement
of the telecom while holding about 2000 exchanges in whole country with the largest landlines
structure in the region.

The services offered by the PTCL includes land line telephone, broad band service, EVO.EVO-3G
wingle, Smart TV, Vfone and Ufone mobile service as a subsidiary. The details of the shareholding
in the company is still now is an given form 100% shares of the company 60% is owned by the
government while 26% was sold to Etisalat telecommunications under the privatization program run
by Shaukat Aziz in 2006. The remaining 12% are sold to general public in the same year.

History of PTCL:

In 1947 the beginning there was no concept of PTCL in Pakistan rather a department “ posts and
telegraph department” exists which is used for communication in 1962 a department was established
“ Pakistan telephone and telegraph department” replacing the first one in those days the service was
provided by the organization as a state owned entity later on in 1991 the governmenttook the
decision to privatize the PTCL in 1994 govt. issued vouchers which are convertible into shares.

In December 1995 the PTC was converted into a joint stock company under Pakistan communication
(reorganization) ordinance:

Assets of the PTC were divided among Pakistan telecommunication limited (PTCL), Pakistan
telecommunication authority (PTA), national telecommunication corporation (NTC),and frequency
allocation board (FAB). While policy was reserved for the government, regulation of the sector was
assigned to the Pakistan telecommunication authority (PTA), frequency allocation board (FAB) was
created for the management of the radio frequency spectrum and national telecommunication
corporation (NTC) was created.

For government’s telecommunication services PTCL inherited about 94.8% of PTCL’s assets;
Including 2.862 million access line installed (ALI) and 2.228 million subscribers (ALIS). Later, in
October 1996, the parliament of Pakistan passed the Pakistan telecommunication (reorganization)
act.

PTCL was established in public sector as a joint stock company in 1996 by enactment of parliament
of Pakistan.

In 2005 govt. decides to fully privatize the PTCL and sold to shares to Etisalat which led to country
wide protests and strikes by the PTCL workers. They disrupted many connections of public sector
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buildings then military overtake the control of exchanges and arrested many workers put them in
jails. All of this ended up with a 30% increase in the salaries of workers.

Historical background:

 1947 posts and telegraph dept. established.

 1962 Pakistan telegraph and telephone dept. 1990-1991
 Pakistan telecommunication corporation ALIS: 850,000
 1995 about 5% of PTCL assets transferred to PTA, FAB and NTC.
 1996 PTCL formed listed on all stocks exchange of Pakistan.
 1998 mobile and internet subsidiaries established.
 2000 telecom policy finalized.
 2003 telecom deregulation policy announced.
 2005 26% shares by Etisalat UAE through open request.

Vision
―To bethe leadingInformation and Communication TechnologyServiceProvider

in the region by achieving customers' satisfaction and maximizing shareholders' value.‖

Mission

To achieve our vision by having:

 An organizational environment that fosters professionalism, motivation

andquality
 An environment that is cost effective and qualityconscious
 Services that are based on the most optimumtechnology
 "Quality" and "Time" conscious customerservice
 Sustained growth in earnings andprofitability

Objectives of the PTCL:

Pakistan Telecommunication Company limited states its objectives as under

 To provide quality services to its customers in Pakistan.

 To provide maximum satisfaction to its customers by using latest technology.
 To increase the worth of owners.
 To led the telecommunication industry in Pakistan.

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Product information:
Main products of the company are:
 PTCL landline
 Vfone
 Ufone customer care
 PTCL broad band smart services
 EVO wireless

SERVICES FOR THE CORPORATE CUSTOMERS:

PTCL offers a host of unmatched services to suit the needs of corporate customers. The
list of the corporate services is given as under:

 Universal AccessNumber

UAN service is ideal for organization engaged with marketing of products or

services. It consists of 6 digits proceeded by 3 digits code of 111, common to
all UANs

For example: 051-111-532-532 (KFC)

UAN is easier for customer to contact you by dialling a simple number. Its
quick and easy access to make queries and complaints increases customer
satisfaction

 Audio ConferencesService

It is another corporate service where PTCL’s corporate clients can have a

conference call amongst their various offices

 Virtual PrivateNetwork

VPN provides a private telephone network linking their offices in different

cities onto one network where cost of communication decreases between the
different cities in significantly

 Universal InternetNumber

UIN is a number starting with 131 used for accessing the Internet. The call
dialed is charged as one local call irrespective of its duration.

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CHAPTER NO: 2
STRUCTURE OF PTCL

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
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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

BOARD 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. MaroofAfzal Chairman PTCL Board
Mr. Arifahmad khan Member PTCL Board

Mr.AbdullahAbdul Rahim Member PTCL Board

Member PTCL Board

Mr. HateemDowidar
Al-Noorani
Mr. SerkanOkandan Member PTCL Board

Member PTCL Board

Mr. Rizwan Malik

Mr. Khalifa Al Shamsi Member PTCL Board

Mr. Hesham Abdullah Al Qasim Member PTCL Board

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Main offices:
 The head office of PakistanTelecommunication Firmlimited is located in sector G-8/4,
Islamabad.
 GM office in every Region.
 Director offices.
 Seniors Engineer office.
 Assistant Engineer office.

Headquarters like:
 Islamabad telecom region.
 Rawalpindi telecom region.
 Hazara telecom region Abbottabad.
 Northern telecom region -1 Peshawar.
 Lahore telecom region (south).
 Lahore telecom region (north).
 Multan telecom region.
 Faisalabad telecom region.
 Southern telecom region-1 Hyderabad.
 Southern telecom region-1 Karachi.
 Southern telecom region -V Sukkur.
 Western telecom region Quetta.
 Switching network central region Lahore.
These regions provide telecommunication services to the customers in their respective areas.
Separately from these, PTCL has an optical fiber building region Lahore and Optical fiber system
Islamabad, each headed by a General Manager to install, operate and look after optic fiber system.

Department of PTCL:
Every organization is divided into definite departments. Each department performs different kind of
jobs and requires staff with specialized skills to handle particular job. This increases the efficiency of
workers.
The PTCL Head Quarters is comprised of several departments. The division is made on the basis of
function they perform. Hence it can be concluded that PTCL has adopted the policy of functional
departmentalization. The main departments of PTCL are mentioned below:

 Finance
 Marketing
 Human resource and administration
 Commercial
 Legal affairs
 Corporate development for clients
 Wireless
 Information technology
 Switching department.

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  Maintenance department.
 Controlling department.
 Technical department
 Operational department
 Payable department

Competitors of PTCL:
Thereis no major competitor of PTCL in landline but with the growth of Telecommunication
industry of Pakistan competition increasing in mobile phone sector.

 Mobilink
 Telenor
 Zong

Mobilink:

Mobilink is a trade name of Pakistan mobile communications limited (PMCL), a mobile operator in
Pakistan providing a range of prepaid and postpaid voice and data telecommunication services to
both individual and corporate subsidiaries.

The headquarter of Mobilink is in Islamabad and it was founded in 11 June, 1994, more than 20,000
cities, towns and villages across Pakistan. There are 2300 number of employees and according to
PTA there are 63 million subscribersof Mobilink.

Telenor:

Telenor Pakistan is the second largest cellular and digital service provider in Pakistan, owned by
Telenor group which is an international provider of voice, data, content and mobile communication
services in eight markets worldwide. The current CEO of Telenor is IRFAN WAHAB KHAN since
August, 2016. It was founded in Pakistan in 2004. It is subsidiary company. Its parent company is
Telenor ASA. Telenor Pakistan has a subscribers are 44 million with market share of 28%. There
are 1900 employees working in Telenor.

Zong:

Zong is a pan Pakistan mobile network operator in the Pakistan and it’s headquarteris located in
Islamabad. Zong is also offering voice and data services, ranging from postpaid plans 2G, 3G and 4G
services. It was founded in Pakistan in 2008. It is a subsidiary company and its parent company is
china mobile. The subscribers of Zong are 33 million with 21% market share.

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No of employees:
Total employees: Total number of employees is near about 18000.

Types of employees in PTCL:

1. Permanent employees
2. On contract employees
3. New compensation packag

Common job detail:

 General Manager
 Senior Manager
 Assistant Manager
 Engineering supervisor
 Customer care assistant
 Office assistant
 Junior computer operator
 Office attendance
 Sweeper

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CHAPTER NO: 3
Training Program
My internship is belongs with specialization of finance. And as it was with authorized department at, finance
department and also is in revenue department.

Practical work in revenue department:

They have different working in revenue and collection department as following:
The revenue generated by the marketing department through selling the
company services/products is collected by the Revenue Department. The roles
played by the Revenue Department are following.
 Bill Printing &Distribution.
 Issuance of DuplicateBills.
 Error correction ofBills.
 Collection of defaulteramounts.

i. Bill Printing &Distribution

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.

ii. Issuance of DuplicateBills

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 Tehsillevel PTCL office during the bill payment
datesnormally from 18thto 30th of each month.
iii. Error Correction ofBills
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.

iv. Collection of DefaulterAmounts

The amounts defaulted by the customers or the bad debts are also collected
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 through revenue department. Each Telecom Recovery Inspector (TRI) is
assigned a target of bad

Billing section:
In billing section they have different traffic provided to the customer and accordingly
provided to the traffic the bill has generated.

They have different traffics provided to the customer as following:

 Local calls
 Broad band
 International calls

RMS console (receivable management system:

`They have different steps of process in which they have following as:
I. Arrears console
II. Inquiry console
III. Miscellaneous console
IV. Recovery console

Enquiry Console

This console mainly provides enquiry functions about customer information,

call record information, account information, payment history and order history.

Further Enquiry Console provides the following functions:

 List historyenquiry
 User profile enquiry
 Pay historyenquiry
 Debit / Credit entryenquiry
Inquiry console:

In which different history check to the customer and different aspects in which includes:
 List history inquiry
 DSL history inquiry
 User profile inquiry
 Pay history inquiry
 Debit/credit inquiry
 Discount inquiry
Miscellaneous:
In which two aspects are included:
 Debit and credit inquiry
 Work followed task
Recovery console:
In which three aspects are included:
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  Bill payment
 Installment apply
 System batch print
PTCLE-Reporting
After billing cycle completion we need now reporting.

The Internet has literally made the world a very small place, as people from
remote corners of the world can connect and work with other people in far off
places at ease just by logging on to the net. One of the best uses of the Internet
is to make available the E‐Reporting facility, where work and its related
documents, filing taxes, invoices etc. are done electronically. E‐ Report is
generally aimed at setting up a of reference material with regard to the
development of innovative methods in the field of e‐learning system.

PTCL e reporting console provides a wide range of reports.

Some reports are given below:

 Connection type wisereport

It provides exchange wise, region wise and SRO wise data generated
against connection type.

 CPP PremiumReport

CPP stand for calling party payee, in which customer dial the mobile number
of any network (Jazz, U-fone, Zong) to contact with some person. PTCL
charges on mobile calling are 2.50 per minute. In which PTCL share is 1.60
and desired network share is0.90.

 Grand BillingSummary

It provides billing summary region wise and exchange wise.

 Arrear amount inquiryReport

Arrear amount inquiry report provides information about arrear of the

customer. PTCL take action against the customer who does not pay their
arrear in the specified period.

 Recovery exceptionReport
This type of report provides the data of those customers whom exemption
is given by the PTCL for the recovery of their bill.
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  Billing ReconciliationReport

This type of report shows the information about PTCL number like, is the
number is new or old? Which number is close or which number is run.

 Bad debtsreport

The customer how does not pay arrears of their bill it should be consider bad
debts. This type of report shows the information about bad debts of the
company.

 BillRegister

It provides information about customer. It has 06 months billing record. It also

gives information about customer behavior of current month.

 Defaulterreports

Defaulter customer is a customer how fails to fulfill their duty obligation or

undertaking especially to pay a debt. Defaulter reports show this type of
customer record.

 Report ofadjustment:

It provides the report of adjustment made in a month along with the

reason of passing adjustment. This is critical as it also helps to identify the
adjustment wrongly or excess made.

 Posting of othercharges:

It provides the information regarding other charges charged to the customer

and reason for posting of those other charges. It also provides the information
from which end charges have been built i.e. revenue or operations.
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.

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 INBASED VALUE ADDED SERVICES VALUE ADDED SERVICES

 0800-Toll Free  Universal Access Number

(UAN)
 PTCL Calling Cards
 Universal Internet Number
 Domestic And International (UIN)

 Premium Rate Service - 0900  ISDN PRI

 Virtual Private Network  TelePlus (ISDN/BRI)

 Local

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  Insurance
 Newspapers  Credit Card
 Airlines  Companies Travel
 Hotels  Courier Services
 Shipping Lines  Utility Services
 Consumer Products Companies  Trading Companies
 Stock Brokers

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Finance department:
Finance department is the most important department of Pakistan telecommunication limited. All
payment is made through this department. This department is change the budget of every department.
Cheques, demand drafts and other payment etc. recorded in this department.
This department is divided into following three sub-sections:

 Finance
 Accounts
 Revenue
The Finance Wing deals with the revenue matters of the company & the Accounts Wing is
responsible for proper book–keeping of the financial transactions, commercial audit & preparation of
periodic accounts of the company.
Finance is the backbone of every organization because without finance any organization can’t run its
business. It plays an important role in determining the long-term objectives and evaluating the
feasibility of the business. The financial activities of PTCL have been split up into three major
branches: Finance, Accounts & Revenue. The details regarding this section will be covered in
finance section with reference to myproject.

DDO Office:
DDO means drawing and disbursing officer. Senior manager (finance and management accounts)
FTR Faisalabad is serving as DDO in FTR.DDO is responsible for payment for all the purchase
made / services acquired by PTCL offices and exchanges in the region and payment of salary and
other benefits to the employees.

Work being performed in Finance department/DDO Office:

 Payment ofinvoices
 FinancialReports
 All procurement related matters like Tenders, PRs, and Work Ordersetc.
 Uploading of weekly data of WHT deducted from Vendors and
monthly data of WHT deducted from Salary on FBRwebsite.
 Uploading of Monthly & Annual Statements of WHT deducted
from Vendors and Employees on FBRWebsit.
 Preparation of Certificates of Annual I. Tax deducted
fromVendors.
 Monthly Statement regarding purchase of FixedAssets.
 Preparation of List of Accrued Expenses at month end and
punching onSAP.
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  Monthly Revenue and ExpenditureStatement.
 Employee related payments like Benevolent Fund, Marriage
Grant, TA Bills, Medical Reimbursement Bills, Uniform, Leave
Encashment, House Requisition and Bonusetc.
 OTR (Other Than Revenue) means Entry of Cash receipt onSAP.
 Bank ReconciliationStatement.
 Preparation of Bank CeilingCase.

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Procurement:
Acquisition of goods, services or works from an outside external source.it is a favorable that the
goods, services or works are appropriate and that they are procured at the best possible cost to
meet the needs of the purchase in terms of quality, time and location.

Process of procurement:
Procurement may invoice 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 policy. “any product or service desired whose price is over x must be put
to tender”), depending on policy or legal requirement, the purchase is required to state what is
required and make the contract open to the bidding process.

Procurement steps:
There are following steps in the procurement:
1. Identification of needs
2. Supplier identification
3. Supplier communication
4. Negotiation
5. Supplier liaison
6. Logistic management
7. Additional step – tender notification
8.
1. Identification of needs:
This is an internal step for a companythat involves understanding of the company needs by
establishing a short term strategy (3-5 years) followed by the defining the technical direction and
requirements.

2. Supplier identification:
Once the company has answered important questions like make-buy, multiple v/s 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 supplier and trade
shows.

3. Supplier communication:
When one or more suitable suppliers have been identified, requests for quotation, request for
proposals, request for information or request for tender may be advertised, or direct contact may
be made with suppliers.

4. Negotiation:
Negotiations are undertaken, and price, availability and customization possibilities are
established. Delivery schedules are negotiated, and a contract to acquire the P/S completed.

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 5. 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.

6. 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.
7. 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.

Procurement Related Terms:

There are following terms related to procurement:
Vendor: A vendor is any person or company selling material or providing services.
RPC:RPC stand for “Regional procurement committee”.
GRN: (goods receipt notes)
TPC:(tendering process committees)
TOC:(Tender Opening Committee)
TEC: (Technical Evaluation Committee)
CEC:(Commercial Evaluation Committee)
PNC:(Price Negotiation Committee)

Voucher Types:
There are different types of vouchers:

I. Payment Voucher (PV)

Payment Voucher is formed when any payment is made to an employee or
a vendor / contractor.
II. Receipt Voucher (RV)

Receipt Voucher is formed when cash is received from an employee or a

vendor / contractor.
III. 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.

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SAP
SAPstandsfor―systemapplicationproducts‖.Sapisneatlyintegratedbusinessso
ftwareto process all functionalities of an organization in order to obtain a
unified solution.SAP is leader when it comes to easy integration among all
thedepartments.

SAP Modules
As I mentioned earlier, SAP is an ERP system that handles almost all department
of an organizations. SAP handles an organization’s Finance , Controlling, Human
Resource, Sales, Distribution, Material management, Warehouse, Production,
Security, Research and many other departments. Not just that but SAP has a
special industry specific solutions for almost all industries such as manufacturing,
Pharmaceuticals, Insurance, Security, Finance, Treasury etc.
SAP SD and HR are most important modules. FI and CO modules control finance
and controlling respectively. SD controls sales and HR controls Human Resource
departments.

SAP contains three steps:

1. PARKING
Parking means add data in system or adds data in system application. It is first stage
of entering data and effect on accounting system. Parker adds data and send to related
person than data enter application automatically transfer for next approval stage.
Mostly document comes for approval to senior manager. When document approve at
the end cheques present to vendor.

2. POST FOREXPENSE
It is the second step of the SAP, in this all the expenses which is park in its step then
post these expenses.

3. POST FORPAYMENT

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It is the last step of the SAP . All the expenses post and payment to the vendors.

CHAPTER NO: 4

SWOT ANALYSIS
The most important part of the internship report the SWOT analysis after working 6
weeks 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.

Strength:
These are the few basic strengths of the PTCL

 Brand name largest telecom company ofPakistan

 Governmentsupport
 PTCL enjoymonopoly
 State of the Art International Gateway Exchanges & Satellite EarthStations
 largeearnings
 good quality internationalconnectivity
 Customer Base of over 4million
 Exponentialgrowth.
 Skilled Human Resource at low-cost.
 Access to Infrastructure – optical network and satellitelinks.
 Favorable policies (to some extent) andregulator.
 Strong international brandnames

Weakness:

 Image – Governmentorganization
 Lack of customer focus
 Outdated people and technology
 Lack of aggressivemarketing

25
  Lack of customer services
 Vague managementstyle Lack of corporate culture
 Socialresponsibility
 lack ofmanagement
 Overemployment
 Quality ofService.
 Low revenue per user.
 Customerretention.
 No clear strategicdirection.
 Poor organizationalstructure.
 No research and developmentprograms.
 Employee skillinconsistency.
 Very low employeemorale.

Opportunity:

 Growth in telecommunicationindustry.
 More aware and technology understanding consumer – a base
that is growing at a fast rate.
 Market open for more number of products – less dependence
on single category or product.
 Opportunity to introduce High Value Added Products / High
margin products forthe new, more awareconsumer.
 Time to establish brand loyalty, Pre-empt competitors, co-
opt partners, invest in technology andnetworks.
 Huge marketsize.
 Local handsetmanufacturing.
 Making technology accessible to all (e.g.broadband).
 Adopt latesttechnologies.
 Removal of international tradebarriers.

26
Threats:

 Speed of internet of other telecommunication company.

 Strong competitors growth like Neyatel network, moblink, zong ,telenor.
 Internet Telephony & other rapidly evolvingtechnologies.
 Expected competition due to the deregulation in December2003.
 Newtechnologies.
 Efficientoperators.
 International players, reduction in settlementrates.
 Recessioneconomy.
 Inconsistent decisions from regulatoryauthorities.

27
 CHAPTER NO : 5

FINANCIAL ANALYSIS
PTCL
Balance Sheet
Horizontal Analysis
2019 % 2018 % 2017 % 2016 % 2015 % 2014
ASSETS
Cash and balances with 15
treasury banks 45775 3% 44381 16% 38159 20% 31845 % 27716 8% 25751
-
Lendings to financial 16 687 59
institutions 12461 % 10721 % 1362 -88% 11489 % 28123 78% 15793
36 28
Investments - Net 363379 % 267403 37% 195694 61% 121173 % 94789 15% 82646
Advances - Net 267001 -2% 271084 11% 244433 -3% 252345 6% 237344 11% 212972
11 23
Operating fixed assets 22084 % 19871 10% 18087 18% 15360 % 12447 12% 11134
16
Other assets 23496 % 20245 11% 18185 3% 17719 -1% 17955 -2% 18399
Total assets - net of 73419 16 51592
provision 6 % 633705 23% 0 15% 449931 8% 418374 14% 366695
LIABILITIES
18 13
Customer deposits 608412 % 514707 29% 399562 8% 371284 % 328875 11% 297475
- -
15 141 48
inter bank borrowings 32952 % 38916 -22% 49993 % 20774 % 39819 43% 27778
-
21 30
Bills payable 4879 % 6203 54% 4015 -3% 4119 % 3162 7% 2952
11
Other liabilities 17513 7% 16351 23% 13325 8% 12284 % 11061 -19% 13636
-
23 120
Sub–ordinated loans 4242 % 5490 0% 5493 0% 5495 0% 5497 % 2498
66799 15 47238
Total liabilities 8 % 581667 23% 8 14% 413956 7% 388414 13% 344339

Represented by
10 10
Share capital 10410 % 9463 10% 8603 10% 7821 % 7110 10% 6464

28
 14 14
Reserves 12438 % 10899 24% 8763 17% 7517 % 6583 13% 5805
30 30
Un-appropriated profit 30855 % 23688 16% 20447 29% 15829 % 12198 43% 8537
22 20
Shareholder Equity 53703 % 44050 16% 37813 21% 31167 % 25891 24% 20806
Surplus on revaluation of 56 18 163
assets – net of tax 12495 % 7988 40% 5719 19% 4808 % 4069 % 1550
27 20
Total Equity 66198 % 52038 20% 43532 21% 35975 % 29960 34% 22356

INTERPRETATION:

ASSETS
In 2019 there is 3% increase in cash and balances with treasury and other banks (2019-2018), in
2018 there is 16% increase (2018-2017), in 2017 there is 20% of increment (2017-2016).in 2016
there is 15% increase (2016-2015) but in 2015 there is smaller change or increment 8% from
2015 to 2014.

In 2019 there is 16% increase in lending to financial institution from 2019 to 2018. There is
highest increase in 2018 which is 687% and smallest or lowest increase in 2015-2014 which is
78% and there is negative change in 2017 and 2016.

In 2019 there is 36% increase in investment but the higher change in investment is 61% which is
in (2017-2016) and in previous between (2015-2014) there is small investment change.

In 2019 there is -2% decrease from advances but from previous year there is higher change in
advances of maximum 11% and minimum 2%.

In 2019 there is 11% of increment in operating fixed assets but in previous year it was more in
2016 and in 2015 but good enough in 2014.

In 2019 there is 16% of increase in other assets even that in previous years there was minor
change in other assets and in 2015 there is decrease in other assets by -1%.

LIABILITIES AND EQUITIES

29
In 2019 there is 18% of increase customer deposit in Allied bank but in 2018 there was more
deposit ratio and in previous years there was average change or increase in customer deposits.

In 2019 there is negative change in Inter bank borrowings by -15% but in 2017-2016 there are
higher changes over the six years.

In 2019 there is -21% decreases in bills payable which is good for the organization but in
previous year there was high bills payable.

In 2019 there is less liability to pay by 7% but in 2018 it was high liability for payment and in
2015-2014 there is negative liability to pay.

In 2019 there are -23% sub-ordinate loans but in previous to three years sub-ordinated loans are
0.

In Share Capital there is continuously change of 10% from the last 5 years.

In 2019 there is 14% increase in Reserves which is lesser than from the previous year. In 2015
and 2016 there is 1% increase of reserve. For meeting the urgent needs or better performance
organization should have to increase their reserves.

In 2019 there is better Un-appropriated profit of 30% from the last years but this profit was more
in 2015-2014 which was 43%.

In 2019 there is more of surplus 56% over the five years. In previous year surplus are 40%, 19%
etc.

30
 PTCL
Income Statement
Horizontal analysis
2019 % 2018 % 2017 % 2016 % 2015 % 2014
Mark–up / return / interest 5422
earned 2 10% 49503 -4% 51814 15% 44993 9% 41122 35% 30571
Fee, commission and
brokerage income 3711 17% 3169 -7% 3395 17% 2910 -16% 3470 6% 3266
Capital gain, Dividend 195
income a 4645 -55% 10353 % 3507 40% 2511 2% 2452 56% 1571
467 - 597 -
Other income 1247 358% 272 % 48 81% 251 % 36 39% 59
Total income 63825 1% 63297 8% 58764 16% 50665 8% 47080 33% 35467
-
Mark–up / return / interest 3255 - - - - -
expensed 2 5% 31142 17% 26643 19% 22428 0% 22422 30% 17273
- - - -
Operating expense 15884 6% 14957 9% 13745 19% 11567 19% -9706 14% -8513
-
Provisions-(charge)/reversal -628 -54% -1362 -58% -3267 24% -4326 -2% -4416 24% -3561
taxation -118 -97% -4195 -16% -4969 21% -4118 21% -3414 74% -1964
Total expense-percentage of - - - - - -
total income 49182 -5% 51656 6% 48624 15% 42439 6% 39958 28% 31311

Profit after taxation (Net

Income) 14643 26% 11641 15% 10140 23% 8226 16% 7122 71% 4156

31
INTERPRETATION

REVENUES
In 2019 there is 10% increase in revenue; in 2018 there is decrease revenue by 5% but revenue
also incremented in 2014-2015 years.

In 2019 there is 17% increase in Fee, commission, brokerage and exchange income, but in
previous years there is low tendency of increase it is higher increase over the five years.

In 2019 there is decrease in -55% in capital gain and dividend income but from last four years
there was not reduction even that capital gain and dividend income most increase by 56%.

In 2019 there is small increase in other income rather than previous years, there is more increase
in 2016-2015 by 597%.

EXPENSES

In 2019 there is 5% of increase interest expense but in previous years interest increased by 19%,
30% etc.

In 2019 there is 6% of increase operating expenses and over the last three year it was
continuously increasing but in 2015 it was again decrease by 14 %( 2015-2014).

In 2019 there is negative provision by -54%, in 2018 it was -58% but in 2015-2014 it was 24%.

In 2019 there is taxation 0f -97% but in 2015-2014 there was higher taxation by 74%.

32
 PTCL
Income Statement
Vertical analysis
2019 % 2018 % 2017 % 2016 % 2015 %
Mark–up / return / interest earned 54222 85% 49503 78% 51814 88% 44993 89% 41122 87%
Fee, commission and brokerage
income 3711 6% 3169 5% 3395 6% 2910 6% 3470 7%
Capital gain, Dividend income and
unealized loss 4645 7% 10353 16% 3507 6% 2511 5% 2452 5%
Other income 1247 2% 272 0% 48 0% 251 0% 36 0%
6382 100 6329 100 5876 100 5066 100 4708 100
Total income 5 % 7 % 4 % 5 % 0 %
- - - - -
Mark–up / return / interest expensed 32552 -51% 31142 -49% 26643 -45% 22428 -44% 22422 -48%
- - - - -
Operating expense 15884 -25% 15884 -25% 15884 -27% 15884 -31% 15884 -34%
Provisions-(charge)/reversal -628 -1% -1362 -2% -3267 -6% -4326 -9% -4416 -9%
Taxation -118 0% -4195 -7% -4969 -8% -4118 -8% -3414 -7%
- - - - -
Total expense-percentage of total 4918 5258 5076 4675 4613
income 2 -77% 3 -83% 3 -86% 6 -92% 6 -98%

1464 1071
Profit after taxation (Net Income) 3 23% 4 17% 8001 14% 3909 8% 944 2%

33
 PTCL
Statement of Financial Position
Vertical Analysis
2019 % 2018 % 2017 % 2016 % 2015 %
ASSETS
Cash and balances with
treasury banks 45775 6% 44381 7% 38159 7% 31845 7% 27716 7%
Lendings to financial
institutions 12461 2% 10721 2% 1362 0% 11489 3% 28123 7%
Investments - Net 363379 49% 267403 42% 195694 38% 121173 27% 94789 23%
Advances - Net 267001 36% 271084 43% 244433 47% 252345 56% 237344 57%
Operating fixed assets 22084 3% 19871 3% 18087 4% 15360 3% 12447 3%
Other assets 23496 3% 20245 3% 18185 4% 17719 4% 17955 4%
100 63370 100 51592 100 100 41837
Total assets 734196 % 5 % 0 % 449931 % 4 100%
LIABILITIES
Customer deposits 608412 83% 514707 81% 399562 77% 371284 83% 328875 79%
inter bank borrowings 32952 4% 38916 6% 49993 10% 20774 5% 39819 10%
Bills payable 4879 1% 6203 1% 4015 1% 4119 1% 3162 1%
Other liabilities 17513 2% 16351 3% 13325 3% 12284 3% 11061 3%
Sub–ordinated loans 4242 1% 5490 1% 5493 1% 5495 1% 5497 1%
58166 47238 38841
Total liabilities 667998 91% 7 92% 8 92% 413956 92% 4 93%

Net assets 66198 9% 52038 8% 43532 8% 35975 8% 29960 7%

Represented by
Share capital 10410 1% 9463 1% 8603 2% 7821 2% 7110 2%
Reserves 12438 2% 10899 2% 8763 2% 7517 2% 6583 2%
Un-appropriated profit 30855 4% 23688 4% 20447 4% 15829 4% 12198 3%
Shareholder Equity,
Equity Tier 1 53703 7% 44050 7% 37813 7% 31167 7% 25891 6%
Surplus on revaluation of
assets – net of tax 12495 2% 7988 1% 5719 1% 4808 1% 4069 1%
Total Equity 66198 9% 52038 8% 43532 8% 35975 8% 29960 7%

34
 .
FINANCIAL RATIOS ANALYSIS
The user of financial statements finds it helpful to calculate ratios when they interpret
company’s financial statements. A financial ratio is simply one quantity divided by another.
Ratios focus on special relationship between two items of balance sheet, income statement or one
from each. Ratios make it easier to understand a specific relationship between various items of
financial statements then looking simply at the raw numbers themselves. The number of financial
ratios that might be created is virtually limitless, but there are certain basic ratios that are
frequently used.
Liquidity ratio

It tells the firm’s ability to satisfy its short term obligations as they come due.

1) Current ratio:
current assets/current liabilities
Higher the current ratio, the more liquid the firm is considered.

  2019 2018 2017 2016 2015

Current ratio 0.50 0.58 0.63 0.75 0.79

Current ratio
0.90
0.80
0.70
0.60
0.50
0.40 Current ratio
0.30
0.20
0.10
0.00
2013 2012 2011 2010 2009
Years

35
Graph representation:

In current ratio there is ability to pay current liability more in 2015 but it little bit
decrease in 2016 and then onward it decrease up till now 2019. It means after the 2015 it was less
ability to pay the current liability of Allied Bank.

2) Net Working Capital:

current assets – current liabilities

  2019 2018 2017 2016 2015

Net working capital -321006 -233640 -169616 -100498 -78673

Net working capital

0

-5

-10

-15

-20

-25

-30

-35

Graph representation:

Net working capital is not favorable from (2015-2019).

Leverage Ratio
 Thedebt to equity ratio is a financial leverage ratio. Financial leverage ratios are used measure a
company's ability to handle its long term and short term obligations.

Three types of Leverage ratio:

1) Debt Ratios:

36
 It measures the proportion of total assets financed by the firm’s creditors. The higher the
ratio, the greater the firm’s degree of indebtedness and more the financial leverage it has.
Debt Ratio = Total liabilities/ Total assets

  2019 2018 2017 2016 2015

Debt Ratio 90.98% 91.79% 91.56% 92.00% 92.84%

Debt Ratio
93.00%

92.50%

92.00%
Debt Ratio
91.50%

91.00%

90.50%

90.00%
2013 2012 2011 2010 2009

Graph Representation:
The ratio indicates, more than half of the assets are financed by debt but the ratio is greater in
2015. Debt ratio indicate the greater the risk and more financial leverage it has. It also shows that
firm has paid some portion of the debt during the year 2017 and 2019.
2) Debt equity ratio:
total debt/total equity

  2019 2018 2017 2016 2015

Debt equity ratio 10.09 11.18 10.85 11.51 12.96

Graph Representation:

37
As the debt of a company increases, the debt to equity ratio increases as well. Firm have
ability to pay debt more in 2015 but after in that its ability of paying debt down.

3) Time interest earned ratio:

Times interest earned (also called interest coverage ratio) is the ratio of earnings before interest
and tax (EBIT) of a business to its interest expense during a given period. It is a solvency ratio
measuring the ability of a business to pay off its debts.

Time interest earned ratio: EBIT

Interest Expense

  2019 2018 2017 2016 2015

Time interest earned ratio -0.45 -0.51 -0.57 -0.55 -0.47

Time interest earned ratio

- Time interest earned

ratio
-

Graph Representation:
The finding of this ratio indicate that organization has no ability to pay interest.

Profitability Ratio
Profitability ratios enable us to evaluate the firm’s profit with respect to a given level of
sales, a certain level of assets or the owner’s investment.
The profitability ratios are of following types:
1) Gross Profit Margin

38
It measures the percentage of each sales dollar remaining after the firm has paid for its goods.
Gross Profit Margin = Gross profit / Sales

  2019 2018 2017 2016 2015

Gross profit
margin 40.0% 37.1% 48.6% 50.2% 45.5%

Gross profit margin

60.0%

50.0%

40.0%
Gross profit margin
30.0%

20.0%

10.0%

0.0%
2013 2012 2011 2010 2009

Graph Representation:
In 2019 gross profit margin of the bank is 40.0%. It is less in the previous year but
greater in 2017 and 2016, it also decrease in 2015 so the firm needs to cut its cost of goods sold
in order to increase its gross profit margin.

2) Operating Ratio:
A ratio of a company's operatingincome to its sales. A higher operating ratio is considered id
eal because it indicates that, inthe event of a decline in sales or revenue, a company will maintain 
profitability.

Operating Ratio : Operating profit/ Sales

39
   2019 2018 2017 2016 2015
Operating ratio 28.53% 34.95% 35.58% 37.13% 36.60%

Operating ratio
40.00%
35.00%
30.00%
25.00%
Operating ratio
20.00%
15.00%
10.00%
5.00%
0.00%
2013 2012 2011 2010 2009

Graph Representation:
It measures the percentage of each sale dollar remaining after all costs and expenses including
interest, taxes and preferred stock dividends have been deducted.

3) Net Profit Margin:

It measures how much out of every dollar of sales a company actually keeps in earnings.
Net Profit Margin = Net Income/ Sales

  2019 2018 2017 2016 2015

Net profit margin 27.01% 23.52% 19.57% 18.28% 17.32%

40
 Net profit margin
30.00%

25.00%

20.00%
Net profit margin
15.00%

10.00%

5.00%

0.00%
2013 2012 2011 2010 2009

Graph Representation:
Net profit margin is 27.01% in 2019 that is more than from the previous years. It is continuously
increasing from (2015-2019) that is really fruitful for PTCL.

4) Return on Asset:
It measures the overall effectiveness of management in generating profits with its available
assets.
Return on Assets = Net Income / Total Assets

  2019 2018 2017 2016 2015

Return on Asset 1.99% 1.84% 1.97% 1.83% 1.70%

41
 Return on Asset
2.05%
2.00%
1.95%
1.90%
1.85% Return on Asset
1.80%
1.75%
1.70%
1.65%
1.60%
1.55%
2013 2012 2011 2010 2009

Graph representation:
The return on investment/Asset of the bank is 1.99% in 2019. It is greater than the previous
years. It shows that the firm generates Rs. 1.99% for each Rs. 100 of the investment.

5) Return on Equity:
It measures the return earned on the common stockholder’s investment.
Return on Common Equity = Net Income/ Common stock equity

  2019 2018 2017 2016 2015

Return on Equity 27.27% 26.43% 26.82% 26.39% 27.51%

Graph
representation:
The findings on equity are 27.27% in 2019 which is greater than that of previous years. But in
2015 it is greater than 2019 ratio.It is quite satisfactory. This ratio is used for measuring the over
efficiency and performance of the firm as the primary objective of firm is to maximize its profits.

42
CHAPTER NO : 6

Conclusion

The over all performance of PTCL has been declining after privatization. The main signals of
performance trend are summarized below:

 There is an increasing trend in the revenue until 2005 after which it has declined
significantly.
 .Operating profit margin shows increase in trend for years 2003, 2004, 2004 but it
decrease for 2005 and further decrease for year 2006.
 Operating cost for year 2005 was higher by 23% while for the year 2006 was 5.25%
higher then last year,
 Return on equity started decreasing after privatization, while amount of dividend, after
decreasing in year 2005, raised in 2006 and again decreased in 2007

Aside from the numerical performance indicators, PTCL took several steps to commence the
journey to bring a culture charge in the organization. This entails putting greater focus on

43
customer service and emphasizing merit, integrity and openness in the Company’s business
practices and process. So there is a hope that numerical performance positive results in near
future.

Recommendations

Recommendations for the Company

 PTCL needs innovative service offerings — currently it doesn’t even offer bundles or a
single bill.
 Overall PTCL still behaves as a monopoly … it has to change its attitude. At a minimum,
avoiding billing errors and providing competent and courteous service to its customers is
essential if PTCL wants to show that it is transforming itself to a competitive company
which cares for its customers.

 PTCL must have to focus on their employees

Till now PTCL is just a procedure-oriented company but it should be shifted from that to
an employee oriented company to satisfy and motivate their HR. PTCL have to value
their staff.

44
  PTCL must have to motivate their employees

PTCL HR management is continuously saying that it motivates and appreciates their

employees but according to the employees there is no motivational aspect present, which
put positive impact on their performance.

 PTCL have to unfreeze the promotion.

PTCL have to unfreeze the promotion program which is closed since 12 years. Due to
this motivation and positivity decreases in employee.

 PTCL lacks in Professionalism

PTCL is not following a very professional attitude. A lot of biasness and personal
favoritisms exist their and employees are evaluated on the Bases of personal relations
with their respective upper management, without taking performance much into
consideration.

 PTCL have to invest in training their employees

Till now Ptcl doesn't give his employees required training opportunities but now they
have to invest in this area if they want to improve their market standing and service
quality And at the same time ptcl have to make contract with their employees that cant
leave PTCL for a specific period of time after training.

 PTCL have to invest in Customer service

Poor customer service is the main problem of PTCL and competitors are hitting Ptcl
through this area and now PTCL have to invest in that area to convert this weakness into
strength.
.
Recommendations for Future Interns

 To fulfill the requirement of the M.COM degree program, I have completed my

internship with PTCL for about two months. During this period I have gained a lot of
knowledge and practical experience. I have practically realized the importance of
individual/practical work.

45
  The very important things which I learnt are, like any other basic sphere of
modern socio-industrial activities, Telecommunication is a main and
important field for the development of any country. The staff of organization
is highly qualified and their behavior is friendly. Also the working
environment of organization is very good. So I recommend all students who
do their internship in future, should do the training program with PTCL
because this is very good institution of learning.

46