Pakistan Telecommunication

Company Limited

INTERNSHIP REPORT

Feel the Difference

2

Sehrish kanwal

FA11-BBA-099

8TH SMSETER

3

(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

4

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.

5

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

6

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

7

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.

8

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

9

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.

10

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

11

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%

12

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%

13

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

14

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-total total 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

15

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

16

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

17

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

18

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

19

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

20

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

21

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.

22

23

24

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

25

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.

27

Here we enter * button and enter

28

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

29

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

30

After conformation we go option document than simulate

31

This window will appear

32

33

34

35

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

36

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.