Internship Report

See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/316786155

Internship Report. Conference Paper · January 2015

CITATIONS

READS

0

3,506

1 author:

Syed Bilal Hassan University of Lahore 1 PUBLICATION 0 CITATIONS SEE PROFILE

All content following this page was uploaded by Syed Bilal Hassan on Hassan on 09 May 2017. The user has requested enhancement of the downloaded file.

Hailey College of Commerce, Commerce, University of the Punjab, Lahore

LETTER OF TRANSMITTAL Prof. Muhammad Majid Hailey College of Commerce, Co mmerce, University of Punjab, Lahore

Subject: Submission of internship report.

Respected Sir,

I am pleased to present to you the internship report made on Pakistan Telecommunication Company Limited, dated from 1st July 2014 to 13th August 2014. The report has been prepared in accordance with the requirements and the

guidelines approved by the competent authority. This report includes the introduction of Pakistan Telecommunication Company Limited, organizational structure, ratio analysis with bar charts, interpretation of ratio

analysis, SWOT analysis, general recommendations to the organization, skills that I acquired by me, and some additional data on how the organization works. In this report I have covered the history, mission, vision, field of activities, and ratio analysis of the company, my work experience, my observation and my recommendations. Thank you for your time and consideration.

Yours sincerely Syed Bilal Hassan Roll # BC11-340 E-Section (Morning)

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore

Mention the Areas Covered by the Report The report which I prepared highlights almost main contents of Pakistan Telecommunication Company Limited. The report covers the history of the Company, introduction, and vision, mission statement, the objectives, core values and the company target setting for its future promotion, SWOT, International Networks, Products and Services, Subsidiaries of PTCL, Competitors of PTCL, Departments of PTCL and Financial Analysis. This area deeply covers the almost things which are necessary to understand the above mention things. Later this report covers the organizational structure which includes the management and different committees such as business development & review, management coordination, audit committees. After that report consists of the data regarding the work done by student in different department. The report covers the overall financial highlights of bank which includes ratio analysis of balance sheet items and income statement items. Later that in this report remaining areas such as conclusion, suggestions and recommendations, skill acquired by student and appendix which consists balance sheet, income statement, cash flow statement and statement of owner equities. All above mention name deeply clarify the explanations which are necessary to understand the working report of Pakistan Telecommunication Company Limited.


Acknowledgement

First of all, Thanks to Almighty Allah for giving us strength to perform and thank to our parents and friends for giving us support by their valuable prayers and good wishes. It is hereby disclosed that on the demand of our college, we made this Internship report on the topic of studying Work System of PTCL. We made a thorough analysis of various aspects of the organizational work system and made a visit to the Regional Office of PTCL in Lahore. We are planning to visit Head Quarter of PTCL for the main part of the Internship report. After all Special thanks to the college for giving us opportunity to show our ability in this small effort. Though we are beginner but certainly his kind supervision will lead us to progress.


EXECUTIVE SUMMARY Pakistan Telecommunication is the result of the efforts to promote and spread telecommunication services throughout the country and to minimize the dependence on foreign countries. Making this report is a part this semester of M.Com degree program. The report covers all the aspects of PTCL’s structure and design. In 1947 the Department of Posts and Telegraph was established and in 1962 the Department of Telephone and Telegraph came into being. In December 1990 Pakistan Telecommunication Corporation (PTC) took over operations

and

functions

from

Pakistan

Telephone

and

Telegraph

Department. In 1996 PTCL was formed after privatization and issued 600 million shares and got listed on all stock exchanges of Pakistan. From establishments

it

has

contributed

a

lot

to

the

development

of

telecommunication in the country. Pakistan Telecommunication Company Limited not only Provides Conventional telephone facilities, it also offers optical fiber services to the private sector. They provide services for home and for business use. The organization structure followed by PTCL includes the decisions made by the top level management, stroked rules and regulations, mixture of both narrow and wide span of control, much of the authority is in the hands of top level managers, and the jobs are performed according to the functions performed. There are some of the factors which effect PTCL composed of the external environment, or if the size becomes too large or any new strategy made by the board of directors, or any technology advancement. The purpose of this report is review of the structure and systems adopted by the organization. The purpose of the study is to evaluate the organization in its design. The primary data for this report is collected through personal observations and through interviewing while the secondary data is collected through the company’s website.


History of PTCL

After the partition of Indo-Pak subcontinent in1947, the areas that became

part

of

Pakistan

were

mostly

neglected

in

respect

of

telecommunication services. The supporting organization and manufacturing telecommunication equipment were almost non-existent in Pakistan In 1947, the Pakistan Posts and Telegraphs Department was attached with the Ministry of Communication. During the first fifteen years, a sound foundation was laid by creating supporting organizations like telephone stores, workshops, training centers, productions and repair of equipment etc. necessary for running of PP&T Department. However, telecommunication network systems remained limited to major cities of the country. The Government of Pakistan started five-year plans to build a proper base for systematic development of the telecom sector. With the expansion of the postal and telecommunication services, government decided to split the PP&T Department into two departments i.e. Pakistan Telegraph and Telephone Department and Pakistan Post Office Department.

The

process

of

bifurcation

was

completed

by

July

1962.Significant developments took place during the first forty years in terms of infra-structure development and transfer of technology from manual to digital switching systems and increase in telephone lines from 12,000 in 1947 to 922,000 in 1990, besides establishment of manufacturing facilities of various types. In 1990, PT & T department was transformed into a corporation and


titled as Pakistan Telecommunication Corporation. The objective of this Initiative was to provide greater autonomy and flexibility to the organization in achieving its long-term objectives. During the next five years, the telecommunications sector made tremendous progress in the provision of telecommunication services. It started manufacturing and production of Telecommunication equipment/materials by using the latest technologies. During PTC period the number of lines increased to 21, 26,054 in 1995, an increase of over 230 percent over 1990. In December 1995, PTC was converted into a joint stock company under Pakistan Telecommunication (Reorganization) Ordinance; assets of the PTC were divided among Pakistan Telecommunication Company Limited (PTCL),

Pakistan

Telecommunication

Authority

(PTA),

National

Telecommunication Corporation (NTC) and Frequency Allocation Board (FAB). While policy was reserved for the government, the regulation of the sector was entrusted 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 the parliament of Pakistan. Pakistan Telecommunication Company Limited (PTCL) was issued a license by Pakistan Telecommunication Authority (PTA) to provide telecommunication services in Pakistan for a period of 25 years commencing from January 1, 1996


The Emirates Telecommunication Corporation (Etisalat) offered the Highest bid of $ 2.6 billion for 26% shares of Pakistan Telecommunication Teleco mmunication Company limited (PTCL) on June 19, 2005. On 13th march 2006 the government has signed an agreement with Etisalat to handover the management of PTCL to them.


Overview Overview of Historical Background

1947

Posts & Telegraph Dept. established

1962

Pakistan Telegraph & Telephone Department. Pakistan Telecom Corporation ALIS: 850,000

1991

Waiting list: 900,000 Expansion Program of 900,000 lines initiated (500,000 lines by Private Sector Participation 400,000 lines PTC/GOP own resources).

1995

About 5 % of PTC assets transferred to PTA, FAB & NTC.

1996

PTCL Formed listed on all Stock Exchanges of Pakistan

1998

Mobile & Internet subsidiaries established

2000

Telecom Policy Finalized

2003

Telecom Deregulation Policy Announced


2005

26 % Shares bought by Etisalat UAE through open bidding

Vision Statement

Strategic vision is a roadmap of a company’s future, providing specifics about

technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop, and the kind of company that management

is

trying

to

create.

Strategic

vision

of

Pakistan

Telecommunication Company is:

To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value.

MISSION STATEMENT

A company’s mission statement is typically focused on its present business scope-“who they are and what they do” mission statement broadly describes an organization’s present capabilities, customer focus, activities and business

makeup.

Pakistan Telecommunication Company Limited’s mission statement is stated


as: 1 An organizational environment that fosters professionalism, motivation and quality. 2

An environment that is cost effective and conscious.

3

Services that are based on the most optimum technology.

4 “Quality” and “Time” conscious customer service. 5

Sustained growth in earnings and profitability.

CORE VALUES OF PTCL Values are general statements, procedures or understandings that guide or channel thinking in decision making. It provides direction for action and regularizes the decision making in certain circumstances. Pakistan Telecommunication Company limited defines its values as:

1

Professional Integrity

2

Customer Satisfaction

3

Teamwork

4

Company Loyalty

Objectives of PTCL

Objectives are the ends towards which activity is aimed. These are the results to be achieved. 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. 01, 2005 to April 12, 2006, the company suffered a loss of Rs.114 million on revenues of Rs.1, 142 million. PTCL management on its part has completed all formalities pertaining to disinvestment of TIP and transfer of shares to Ministry of IT and Govt. of Pakistan.

Auditors

A. F. Ferguson & Co., Chartered Accountants Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants

The Directing Body of PTCL The Chairman and the Board of Directors of PTCL are as:


Muhammad Akhlaq Ahmad Tarar, Chairman

Mr. AbdurRahim Abdulla Alnooryani Member PTCL Board

Dr. Waqas Masood Member PTCL Board

Dr. Daniel Ritz Member PTCL Board

Mr. YasirQadir Member PTCL Board

Mr. Amjad Ali Khan Member PTCL Board

Mr. Fadhil Mohamed Erhama Al Ansari Member PTCL Board

Mr. SerkanOkandan Member PTCL Board

Mr. Jamal Saif Member PTCL Board

Ms. Farah Qamar Member PTCL Board

THE MANAGEMENT BODY OF PTCL WalidIrshad

President & Chief Executive Officer


(CEO) Muhammad NehmatullahToor Syed MazharHussain

Muhammad Nasarullah

Hamid Farooq Furqan Habib Quraishi Kamal Ahmed

Jamil A. Khwaja

Chief Financial Officer (CFO) Chief Human Resource Officer (CHRO) Chief Business Operations Officer (CBOO) Chief Business Development Officer (CBDO) Chief Marketing Officer (CMO) Chief Digital & Corporate Service Officer (CDCSO) Chief Customer Care Officer (CCCO)

Tariq Salman

Chief Technical Officer (CTO)

Raed Yousef Ali Abdel Fattah

Chief Information Officer (CIO)

Jamal Abdalla Salim Hussain Al Sawaidi Farah Qamar ZahidaAwan

Chief Procurement Officer (CPO) Company Secretory Executive Vice President (Legal affairs)


Products and Services Pakistan

Telecommunication

Company

Limited

not

only

Provides

Conventional telephone facilities, it also offers optical fiber services to the private sector. We will briefly discuss below the product lines being offered by the PTCL. Basically PTCL divide their services into two parts.

TYPES

Home Product and services

Business Product and services

HOME PRODUCT AND SERVICES PTCL SMART TV PTCL digital multi-channel Television service that delivers television programs to households via a broadband connection using the Internet Protocol (IP) technology. The service requires subscription and Customer Premises


Equipment (CPE). An IP-based platform allows the TV service to be ‘smarter’ than the traditional broadcast and cable TV services, by making the TV viewing experience more interactive and personalized.

BROADBAND

Broadband in telecommunications refers to a signaling method that includes or handles a relatively wide range (or band) of frequencies, which may be divided into channels or frequency bins. Broadband is always a relative term, understood according to its context. The wider the bandwidth, the greater the information-carrying capacity. PTCL is providing broadband services to its customers without any extra cabling connection allowing its customers to enjoy the voice service over the same telephone line.

VFONE

Vfone is the fixed wireless access network that allows customers to connect wirelessly with the whole world. It’s easy to use and economical and you can

enjoy the wireless connectivity within your premises. PTCL is using the CDMA 2000 1Xtechnology for Vfone and the network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVDO Broadband.


Prepaid calling cards

PTCL prepaid calling cards gives nationwide access with international facility. It comes in easily affordable denominations of Rs.100, 250, 500, 1000 & 2000. These cards are easily available throughout the country and it is easy to use it from any PTCL digital phone. Customer has to pay neither line rent nor bill. In November 2003 PTCL launched 100 denomination prepaid calling card with advanced features.

BUSINESS PRODUCT AND SERVICES BUSINESS DSL

Business DSL solution gives your business high-bandwidth Internet access at a fraction of the cost of TI-based access. That's because DSL dramatically reduces the circuit access charges and allows for traffic aggregation across a large number of customers. For one low monthly charge, you can e-mail, research on the web, stream audio and video, connect to intranets, transfer large amounts of data, and perform many other tasks only capable through high speed internet access.


EVO WIRLESS PTCL is providing the new revolution of broadband i.e. PTCL Evo - the ultimate solution for high speed internet access on the move. Just plug and play or work at home, in the office or anywhere in between.

Universal Internet Number (UIN)

Due to the boom in telecom sector ISPs continue to mushroom at around the country. UIN is a number starting with 131 used for accessing internet e.g. 13199199. UIN number is assigned to each ISP by PTA. The call dialed is charged as one local call irrespective of its duration. Internet service in Pakistan has constantly improved due to the technological advancements.

International Networks SEAMEWE-3 Submarine Cable System PTCL is a member of SEAMEWE 3 Cable Consortium with its Cable Landing Station at Karachi. SMW-3 cable connects 39 cable landing stations in 33 countries and four continents. SMW-3 is the longest system of the world with a total length of 39,000 Km.


SMW-4 Submarine Cable System SMW-4 is a relatively new submarine cable system (inaugurated in December 2005) and links 14 countries with 16 landing stations across Europe, Middle East and Asia. The system is using Terabit DWDM technology to achieve. The link between any two destinations is STM-1. SMW-4 is designed for relatively higher traffic volumes.

Satellite Communication PTCL has Intelsat Standard Earth stations near Karachi and Islamabad. These installations provide the diversity for international voice connectivity and also work as Hub for domestic satellite users. There are four Intelsat Standard Earth stations at Islamabad, Gilgit, Skardu, and Gwadar.


SUBSIDIARIES SUBSIDIARIES OF PTCL Paknet

Paknet is a fully owned subsidiary of PTCL. Technical assets and staff were carved out of PTCL to Paknet, to help new company to meet the competitive market. The staff, thus transferred had requisite experience and expertise in internet and data communication field. However most of the employees have been hired from private private sector. The recently reconstituted

board of directors

of Paknet comprises senior and experienced professionals nominated by PTCL board.

Pak Telecom Mobile Limited (PTML)

In today’s changing trends in the telecom sector, all global telecom have

strong cellular networks either directly or through subsidiaries. While keeping this in mind there was a need for PTCL to have its own cellular service. Pak Telecom Mobile Limited (PTML), a wholly owned subsidiary of PTCL, was created. The company commenced its operations under the brand name of Ufone from Islamabad in January 2001 and subsequently extended its coverage to other cities. Presently Ufone’s network covers more than 750

cities, towns and major highways of the country. During this last year Ufone successfully completed its US $170 million phase IV network expansion consequently the asset base of the company has increased from 20 billion to Rs.27 billion. As for the company’s


approved business plan, Ufone was expected to close its first financial year (ending June 30, 2001) with about 30,000 customers but Ufone achieved over 100,000 customers by June 2001.Now during this financial year (ending June 30, 2006) Ufone has increased its customers from 2.58 to 6.34 million.

Telephone Industry of Pakistan (Tip)

Telephone industries of Pakistan (Pvt) Ltd Haripur was incorporated as a private limited company in 1953 by Gop with the collaboration of Siemens AG.germany.the company is managed by Board of Directors having 8 directors on the board, six from PTCL and two from Simens A.G.Germany. The company started production of Telephone sets. With the passage of time and with the change in technology, its capacity has increased in addition it was also producing Contains, Exchanges, distribution boxes, Divisional Cabinets and Drop wire. The company was having marketing limitations and lakeluster approach predominantly for reasons of legacy and due to its remote location. Paid up capital of the company is Rs.759753 million and turn over was depending upon orders from PTCL, NTC, SCO and WAPDA. W APDA.

Carrier Telephone Industries (CTI)


Carrier Telephone Industries (CTI) was incorporated as a private limited company in the public sector in 1969 in collaboration with Pakistan telecommunication Company Limited and Siemens AG, Germany. CTI was established to acquire, develop and produce latest state-of-the-art equipment in

the

field

of

transmission

technologies,

electronics

and

other

telecommunication areas. It provides a sophisticated technology base for the country.

Today

CTI

is

manufacturing

SDH

transmission

equipment,

Multiplexing products, Optical Fiber and Digital Radio Systems. In addition it has also ventured in the manufacturing of Microwave Gid Parabolic Antennae, PABX and Pai Gain System. It has recently started assembly of personal Computers, besides selling other Electro-mechanical accessories, measuring instruments and other products. The company employs latest manufacturing techniques i.e. Surface Mounting Technology (SMT) for mounting components and its robotics arms/machines provides excellent support for after sales services. It is equipped to train and fully support its customers. CTI was privatized in November 2005 as part of the PTCL privatization commitment. PTCL’s equity investment of Rs.8 million was sold

for Rs.500 million to Siemens AG the privatization commission has not yet released the proceeds of this sale to PTCL. The company had earned a current year profit of Rs.2 million before privatization in November 2005.

UFONE

Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service provider. Since the outset, it has expanded its coverage and customer base at


a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. The growth of the cellular industry is a direct result of the successful implementation of the telecom deregulation and cellular mobile policy by the Ministry of IT and Telecommunications (MOIT&T) and the support, guidance and

timely

enforcement

of

regulatory

process

by

the

Pakistan

Telecommunication Authority (PTA).

Structure of organization 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 Limited is called “President”.



Then there come the SEVPs (Senior (Senior Executive Vice Presidents) i.e. SEVP (Finance), SEVP (Operations), SEVP (Technical), SEVP (Human Resource Management), SEVP (Marketing & Business Development) and SEVP (Legal affairs).



Then there is a chain of Executive Vice Presidents 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 from these EVPs, there are also EVP (Operation), (Operation), EVP EVP (HR) etc. who are heading the other regions of PTCL in major cities country wide.



Then there are Chief Engineers and General Managers 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 head PTCL Regions then comes the Senior Managers (Operations), Senior Engineers (Operations), Engineers to look after the telecom system of Regions. In non-gazetted staff there are Engineering Supervisors Operations /Switching /Power plant /Optical Fiber system/M.W Media, Account Assistants, Stenographers, Assistants, Key Punch Operators, Telecom Technicians, Upper Division Clerks, Lower Division Clerks, Line Men, Wire Men, and Exchange Cleaners.

All the staff is recruited recruit ed by the HR Department headed h eaded by b y SEVP HR. The HR experts are responsible for hiring & to further streamline its recruitment process.


Organizational Chart


Network Operations Center (NOC)

PTCL is a leading provider of telecom voice and data services within Pakistan. As part of its continuing infrastructure developments, PTCL has embarked upon a major investment program in the Network Operations Center (NOC). The purpose of NOC is to control, monitor and manage the entire PTCL network; to enhance and optimize network management through a transparent and centralized platform and to create a highly available, adaptable and fault resilient network that can meet market demand and offer customer satisfaction. Through the NOC, PTCL has been able to address those issues with a complete convergence of the entire network on a single platform.

Benefits



Proactive identification and resolution faults of through Real-time Network Monitoring & status visibility.



Increase network availability through Enhanced Quality of Service and centralized performance statistics and reporting mechanism.



Increased Accountability and Transparency through escalation policies, work orders and maintenance of secure activity logs.


DEPARTMENTS OF PTCL Every organization is divided into definite departments. d epartments. 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. 1. Human Resource Management Dept. 2. Finance Dept. 3. Commercial Dept. 4. Operational Dept. 5. Technical Dept. 6. IT Dept. 7. Corporate Affairs Dept. 8. Special Projects Dept.

Human resource management 

It is a huge huge organization and being considered as one of the biggest company in Pakistan.



It has more than 56,000 employees employees and a huge huge network of organizational management has been spread throughout the country.

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore 

PTCL is engaging a substantial number of experts and and specialists of of standing caliber in different spheres of profession.



Job analysis and revision of jobs description was undertaken for improving the performance standards.



To meet the future challenging challenging situations in the face of privatization and post

monopoly

challenges,

a

corporate

culture

and

competitive

environment has to be developed, for which all the available resources have been taped. 

Special training courses and workshops have been been conducted for the top and middle management through reputed organizations like LUMS.



Efforts are being made to improve improve productivity and efficiency of the Company while emphasis is also being placed on effective management employees relationship and better line of communications to achieve corporate goals.



The Human Human Resource department of the company operates operates in an auxiliary, auxiliary, advisory,

or

facilitative

relationship

to

other

departments

in

the

organization. 

The SEVP SEVP of the H.R. Department is is the individual most actively involved in policy revision to cover recurring problem or to prevent anticipated problems.



A major major portion of the activities of those engaged in staff personnel work is in the nature of counsel and advice to t o line manager.



The H.R. Dept. carries out important control functions. It monitors the performance of line department and other staff departments to ensure that they conform to established personnel policy, procedures, and practices.



The service service responsibilities of the H.R. department are apparent apparent when one examines such things are as the employment, training, and benefits functions. The tasks of recruiting, interviewing and testing job applicants are performed in the H.R. Dept.


Finance 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. The Accounts Office of PTCL is in Lahore. Finance is the backbone of every e very 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 s plit up into three major branches: Finance, Accounts & Revenue. The details regarding this section will be covered in finance section with reference to my project.

Commercial Department 

Commercial section with qualified/experienced staff is being established.



Company section is taking both both short-term and long-term long-term view of emerging emerging trends of highly competitive markets as its monopoly is coming to an end.


It analyzes analyzes all the possible Company options, i.e. introducing new services, adopting new technologies to maintain the leading role in the sector and preserve its dominant position in the industry.



The Company likes to reiterate that it will continue to play a prominent role role in Telecom sector of Pakistan.



It considers that one of the most important aspects of the forthcoming forthcoming competitive environment is pricing of products and services. The new paradigm would require cost-based services with thin-profit margins but higher volumes. Inherently, PTCL services were not costbased. There were in-built subsidies and long l ong distance calls, both domestic and international, were highly priced. The Company, therefore, evolved strategies of gradual price rationalization



Commercial department should try to make PTCL the most profitable organization, which should generate a great deal of revenue in local & foreign currency.

Operational Department Manages operations of PTCL HQ, with regional offices, branches, and, subsidiaries as well as with other corporations. The purpose of operation department is:



To control, monitor and manage the entire PTCL Network



To create a highly available, adaptable adaptable and fault resilient network that can meet the market demand and provide customer satisfaction.


Enhanced Quality of Service and and centralized performance statistics and reporting mechanism.

Technical Department

This department is engaged in the management and control c ontrol of technical aspects of the company, e.g. technical manpower, technical training, technical equipment, etc.

IT Department

This department is established to introduce introdu ce new and advance technology in PTCL. Due to IT department working system is to converted in a computerized system.

Corporate Development Department

This department deal corporate level issues such as PTA, International Telecom Union, Legal and Regulatory affairs etc.

Special Projects Department


This department is doing their activities on behalf of president.

COMPETITORS OF PTCL There is no meager competitor of PTCL in landline but with the growth of telecommunication industry of Pakistan competition increasing specially in mobile phone sector. In total there are more than 800 million subscribers of mobile phone. There are 03 big players in mobile phone industry but 3 of them are the competitor of PTCL: 

Mobilink



Telenor



Warid Tel



Zong

MOBILINK Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having more than 31,958,597 users base which is the 36% of total cellular industry of Pakistan. Mobilink is basically competing Ufone which is subsidiaries of PTCL.

TELENOR Telenor is another cell phone company it have 17,841,074 subscribers which is 20 % of total mobile industry.


WARID TEL Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more than 15,114,678 subscribers which is 17% of Pakistan mobile industry.

Zong china Mobile Company Zong is also providing cell phone facilities in Pakistan. 26.7 million of subscriber zong/china mobile company.

NEW COMPETITORS Other than mobile & land line PTCL is facing competition in F.W.T (Fixed Wireless Telephone) product market. Below are the major competitors. Telecard 501,680 World Call 468,335 This has added competition for PTCL (1,245,639) in WLL (Wireless local Loop) field.


Personal Practical work done by the student Revenue Department

Structural diagram of revenue and collection department

General Manager Finance

Senior manager R&C

Manger CTH

Manger BGP

Manager DHA & CANTT

Manger Ali Park

Manger DP section


They have different working in revenue and collection department as following:



Billing section



RMS console ( Receivable Management System)



CCS (customer care services)



Security deposit and demand notice



Data processing section



Bank scroll and stubs

Billing section In which they have different traffic provided to the customer and accordingly provided to the traffic the bills has generate. They have different traffics provided to the customer as following: Local calls, broadband, international calls,

RMS console They have different steps of process in which they have following as: 

Arrears console

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore 

Inquiry console



Miscellaneous



Recovery console

1) Arrears console

They have two aspects in which include: 

Manual block restore



Block history

Manual block restore

In which whose customer no payment than Islamabad headquarter through batch files and through e-reporting whose customer no paid the bills than close the defaulter. In revenue collection department has manually close one by one and who customer paid the bill than again reconnect.

Block history

In which any facilities to give the customer to international calls and close due to ay reasons may be nonpayment or may be defaulter and no payment of bill for 2 month so block the facilities. facilities. They have different cases cases as following: 

One way reactive




Two way reactive



Terminate

2) Inquiry console

In which different history check to the customer and different aspect in which include: 

List history inquiry



DSL history inquiry



User profile inquiry



Pay history inquiry



Debit/credit inquiry



Discount suit inquiry

3) Miscellaneous

In which two aspects are include: 

Debit and credit inquiry



Work followed task


4) Recovery console

In which three aspects are include: 

Bill payment



Installment apply



System batch print

Bill payment In which duplicate for check billing. Customers are paid the bill or not

Installments apply

In which broadband, IPTV and different other connection are there to provide the customer and option to paid the bill in installment if bill payment is more than 10000.

System batch print If most bill print is together than this command will received at one time 100 bills together printed


E-Reporting system User id

Password

Free service telephone connection report In FSTC report PTCL provided different facilities to the employee

Five one

seven one

Official number

Residentional number Ceiling limit

In which different number of unit PTCL are giving to the employee rank wise for different ceiling


As like general manager of finance have unlimited units provided.

PTCL report portal 

Bad debt report



Billing report



CCS report



Defaulter report



DSL report



Miscellaneous report



OSS report



Pre-invoiced billing



Revenue and collection

Bad debts report

In which two aspects are involve 

Doubtful bad debts debts bill registered



Doubtful bad debts debts monthly balance sheet


Billing report Every query how much generates bill for DSL and how much number are attained. They have different points giving as follow: 

Overseas detail



PRS (0900) report company wise



Summary of telephone number working for armed armed forced (agreement)



Summary of exchange telephone



Slab wise analysis of bills



Pay phone customer services



Billing reconciliation

Customer care services report



Aging of completed report



Aging report (broadband installation)



Aging of pending orders



Broadband subscription report



Broadband summary report



Daily registration


Incentive report

Defaulter report



Defaulter bill registered



Defaulter history inquiry



Defaulter monthly balance report



List of defaulter



Defaulter live pool matching report

DSL report



Report of DSL subscriber



Revenue report of broadband services



Summarized report of broadband services



Summarized report of dial-n-net



Telephone number having miscellaneous


OSS report



1-2 OSS collection report



3 OSS collection report customer services



4 OSS daily transfer bank deposit report



5-7 OSS daily monthly cash receipt report with amount



6 OSS daily excess short collection report

WHAT DUTY I PERFORM 

Retention working



Win back

Retention working

In which dial telephone to the customer and resolve the issues. 100 telephone dial on the daily biases of internship and write down the problem and issues of the customer and also ask the customer why is not paying the bill.

Win back

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore In which who’s customers not pay the bill and going on defaulter sides than

revenue and collection department contact the customer and insist the customer to pay the bill and who’s customer agree so that is win back and if

not pay so they become defaulter.

CUSTOMER COMPLAINS RECTIFY TO RESOLVE BILLING ISSUE Three types of meeting: 

Divisional vigilance committee



Regional vigilance committee



Zonal vigilance committee

Divisional vigilance committee (DVC) In which to resolve the issue for lower level. If any customer complaint for bill point of view any case may be attached more bill and customer no use so they have limit to relief for 1000 Rs. Members are sitting: They are two member are sitting who’s are making decision 

Revenue



Business manager


Regional vigilance committee (RVC) In which they have same procedure of above committee but the relief amount is 5000

Members are sitting: 

Manger revenue, SM of revenue and collections department



BM, SBM, GM

Zonal vigilance committee In which also customer complaint and this is last and highest authority firstly main headquarter in Islamabad but now it is situated in Lahore Member are sitting 

2 GM (general manger), 2SM(senior manager), SEVP (senior executive executive vice president)



RGM (regional general manger)

Data processing section In data processing section to check the overall billing procedure they have different region to distribute the bill in different areas as following: 

North


South

Division of bills The bill divided into two categories



TCS



GPO

All bills under the supervision of Islamabad headquarter. Wale-Hamza the head of all over PTCL billing in Pakistan different files send through TCS and head office. Computerized printings of billing the direct command of batch files and combination of sheet all data are attached. The department of UBDC(utility bills distribution collection) under the revenue department department send the our employee before printed the bill to check the issue date, due date, postal date, number etc all things are right than command for printed.

TCS PTCL contract the TCS for printing the bills and distribution and PTCL paid the amount TCS. If bill will not delivered to the customer properly than deduct the amount of TCS.

LTR-N Lahore

LTR-N region

Lahore Senior Manager (R & C)

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore LTR-N&S region Lahore

Printed bills



G.P.O 83000 bills printed per month



TCS in north north way 144000 144000 bills printed printed and in South way 110000 110000 bills printed

Revenue generates the month of May 2014



PSTN mean land line and the month of May2014 PSTN given given to the PTCL 150 million



DSL mean broadband and the month month of May 2014 DSL given given to the PTCL 127 million

BANK SCROLL AND STUBS The bank scroll and stubs are the part of bill if we see the bills the above portion and below portion are there in bill. When the customer paid the bill the above portion are back to the customer and below portion are there in bank and some banks process the bill and send to the main PTCL head office and some bank don’t process than send to the knift institute and then proceed and

send the scroll and stubs in PTCL head office


FINANCE DEPARTMENT In finance department they have several working in this department all accounts are maintain and payable and payments basically in which different software are used like SAP, ERP etc. all data are parking and then creates the invoice and then cheque payment are ready to give the different company or employee for the purpose of petty cash or another things. They have different invoices come the finance department for the payment purpose so firstly checking the all data and enter in SAP the head of parking and get the invoice and check the budget if they have than posting and creates the cheque.

Payable Department Function Departmental Hierarchy: Payable department of PTCL has the hierarchy where three Assistant Managers are under the subordination of a Finance Manager that directly reports to its senior manager. Following the t he practical diagram of hierarchy 

Assistant Manager – (Finance) - (Income Tax, WHT, Cash Imprest, Voucher Placement)



Assistant Manager (Acting Manager) – (Financial Analyst) Pre-Audit



Assistant Manager – (Accounts) (Parking & Posting and Cheque Printing)



Cashier (Allotment of VR & JV Number, Cheque Dispatching, Record Keeping)


Payable Department Procedure



Following is the entire procedure of PTCL payable department:



Bills and vouchers are received by scrutiny departmental members in CTR



Required documents are verified then its send for Placement of Payment voucher on it to Assistant

Manager (F), Income invoice

Register. 

Scrutiny of Bills is done within a day



Once the scrutiny is done, vouchers are placed on it



Then it Send to Signature of Manager (F) and Senior Manager (F) for Pre-audit Checks and Approval for Process



Voucher are then parked in SAP



Posting in SAP Followed by printing of cheques ch eques



Signing of cheque by particular authority



In the end dispatch of cheques through TCS.

Stepwise Procedures

Now we will analyze each procedure of the cycle individually, where first is Bill Receiving:  

Entry of bill in an incoming invoice in voice registers (MS ACCESS) Assigning of serial number to the original, duplicate and triplicate copes of each bill



Entry of serial number and date with initials of receiving person on all copies


Checking of available documents with bill



Return of triplicate copy to the person submitting the bill



Filling of both copies cost center wise

Parking in SAP



Login in the parking user ID in SAP



Use of Short code Fv60 for f or parking of payment voucher



Use of Short Code fv50 for f or parking of journal voucher



Printing of parked SAP voucher

 

Attachment of voucher with the original bill Forwarding of file for scrutiny

Scrutiny of Bills



Checking of availability of relevant documents



Checking rates of good acquired



Checking of availability of approval from concerned authority



Signing of person scrutinized the bill if found f ound correct in all respects



Attachment of objection letter in case there is any objection



Checking and signing of voucher by the AM Finance Scrutiny



Checking and signing of voucher by the Manager Finance.



Demanding funds from AM finance budget if not available in the cost centre



Sending of files for posting


Posting of Voucher

The staff while posting of voucher is following steps 

Login in to SAP with posting user ID ID



Overview of voucher



Posting of voucher through T code fbv0 in i n SAP



Signing and stamping over the voucher



Forwarding of vouchers file to Manager Finance for payment process

Payment Process in SAP

Payment process has to follow the above steps through SAP: 

Payment process in SAP through login ID of payment user



Calculation of income tax



T-code f53 used for creating payment document



The document number entered on voucher for cheque printing reference



Voucher is forwarded for cheque printing.

Cheque Printing

The last step for payment process is cheque printing process which has further 3 more procedure to do it with automation:


Blank cheques are inserted in printer for printing with complete serial



Printing done through login ID of payment user



T code used for cheque printing



stamping of cheque printing authorities done after its printing



Cheque numbers are entered over the voucher

Signing and Dispatching of Cheques 

Once the cheques are signed, the last two procedures are followed,



Checking and verifying particulars particulars cheques with the voucher



Signing of cheques counter slip



Cheque along with voucher send to SM Finance for signing as as a first authority



Signing of cheque from second signatory



Separation of cheque from voucher for dispatch



Where the dispatch of all cheques is done follows these steps:



Printing of envelope



Handing over the cheque envelope to the representative of TCS within days of the receipt of the bill



Updating of Incoming Invoice Register by entering cheque number against each bill



Voucher stamped as PAID



Voucher sends for binding.


Financial Analysis

INDEX ANALYSIS

An analysis of percentage of financial statements where all balance sheet or income statement figures for a base year equal 100 (percent) and subsequent financial statement items are expressed as percentage of their values in the base year is called Index Analysis 1.


STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 Note

2014

2013

Rs ‘000

Rs ‘000

51,000,000

51,000,000

2,196,770 30,500,000 8,117,782

2,958,336 30,500,000 16,324,138

40,814,552 329,039 92,143,591

49,782,474 89,785 100,872,259

549,256 2,676,026 33,011,258 6,848,180

529,358 3,749,739 33,050,773 5,123,099

43,084,720

42,452,969

44,345,349

38,583,250

179,573,660

181,908,478

Equity and liabilities Equity Share capital and reserves Share capital

6

Revenue reserves Insurance reserve General reserve Unappropriated profit Unrealized gain on available for sale investments

Liabilities Non-current liabilities Long term security deposits Deferred income tax Employees’ retirement benefits

Deferred government grants

7 8 9 10

Current liabilities Trade and other payables

Total equity and liabilities

11


2014 Note

Rs ‘000

2013 Rs ‘000

Assets Non-current assets Fixed assets Property, plant and equipment Intangible assets

Long term investments Long term loans and advances Investment in finance lease

13 14

15 16 17

94,452,061 4,826,422

87,219,249 5,157,172

99,278,483

92,376,421

7,791,296 2,794,106 84,398

7,791,296 6,784,020 38,781

109,948,283

106,990,518

2,872,542 15,758,805 4,136,133 28,305 344,801 16,366,457 2,164,072 4,994,327 18,441,389 4,518,546

3,675,314 18,596,301 6,541,852 12,927 667,024 15,586,424 2,164,072 910,116 22,405,669 4,358,261

69,625,377

74,917,960

Current assets Stores, spares and loose tools Trade debts Loans and advances Investment in finance lease Accrued interest Recoverable from tax authorities Receivable from the Government of Pakistan Prepayments and other receivables Short term investments Cash and bank balances

18 19 20 17 21 22 23 24 25 26

STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2014


Total assets

179,573,660

181,908,478

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED DECEMBER 31, 2014 Note

2014

2013

Rs ‘000

Rs ‘000

81,061,355 (53,073,952) 27,987,403

Revenue Cost of services Gross profit

27 28

81,512,598 (55,682,723) 25,829,875

Administrative and general expenses Selling and marketing expenses Voluntary separation scheme cost

29 30 31

(9,857,639) (3,290,137) (8,174,536)

(9,116,544) (2,901,035) -

(21,322,312) 4,507,563

(12,017,579) 15,969,824

4,706,389 (295,193) (907,230) 8,011,529 (2,804,035)

4,214,290 (346,477) 19,837,637 (7,141,504)

5,207,494

12,696,133

1.02

2.49

Operating profit Other income Finance costs Loss of property, plant and equipment due to fire Profit before tax Provision for income tax

32 33 13.4

34

Profit for the year Earnings per share - basic and diluted (Rupees)

35


STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2014 2014 Rs ‘000

Profit for the year

2013 Rs ‘000

5,207,494

12,696,133

(6,023,357) 2,047,941

(5,288,914) 1,798,231

(3,975,416)

(3,490,683)

274,981 (35,727)

87,291 (49,295)

239,254

37,996

(3,736,162)

(3,452,687)

Other comprehensive loss for the year Items that will not be reclassified to profit and loss: Remeasurement loss on employees’ retirement benefits Tax effect of remeasurement loss on employees’ retirement benefits

Items that may be subsequently reclassified to profit and loss: Gain on available for sale investments arising during the year Gain on disposal transferred to income for the year Unrealised gain on available for sale investments - net of tax Other comprehensive loss for the year- net of tax

Total comprehensive income for the year

1,471,332

9,243,446


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 2014

2013

Rs ‘000

Rs ‘000

38,548,190 (12,551,507) (1,055,098) (8,422,813) 19,898 (2,157,850) 14,380,820

38,152,072 (8,478,000) (734,420) (54,305) (5,129) (2,681,395) 26,198,823

Capital expenditure Acquisition of intangible assets Proceeds from disposal of property, plant and equipment Short-term investments Finance lease Long term loans and advances Receipts against loan to PTML Return on long term loans and short term investments Government grants received Dividend income on long term investments

(20,938,960) (246,373) 38,768 (12,000,000) (74,432) 1,007,682 5,500,000 4,064,490 2,106,683 10,000

(14,339,444) (368,857) 5,804 (65,360) (450,856) 2,500,000 2,767,724 1,662,822 -

Net cash outflows from investing activities

(20,532,142)

(8,288,167)

Dividend paid Net (decrease) / increase in cash and cash equivalents

(9,652,673) (15,803,995)

(5,094,273) 12,816,383

Cash and cash equivalents at the beginning of the year

26,763,930

13,947,547

10,959,935

26,763,930

Note

Cash flows from operating activities Cash generated from operations

37

Payment to Pakistan Telecommunication Employees’ Trust (PTET) Employees’ retirement benefits paid

Payment of voluntary separation scheme cost Long term security deposits Income tax paid Net cash inflows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Cash and cash equivalents at the end of the year

38


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2014 Issued, subscribed and paid-up capital Class ‘A’

Revenue reserves

Insurance Reserve

Class ‘B’

Unrealized gain Unappropriated on available for sale investments profit

General reserve

Total

(Rupees in ‘000)

Balance as at January 01, 2 013

37,740,000

13,260,000

2,678,728

-

-

-

- 12,696,133 - (3,490,683)

- 12,696,133 37,996 (3,452,687)

-

-

-

-

9,205,450

37,996

9,243,446

-

-

279,608

-

(279,608)

-

-

-

-

-

- (5,100,000)

- (5,100,000)

-

-

279,608

- (5,379,608)

- (5,100,000)

37,740,000

13,260,000

2,958,336

-

-

-

- 5,207,494 - (3,975,416)

- 5,207,494 239,254 (3,736,162)

-

-

-

-

1,232,078

239,254

1,471,332

-

-

267,576

-

(267,576) 1,029,142

-

-

-

-

-

- (5,100,000)

- (5,100,000)

-

-

-

- (5,100,000)

- (5,100,000)

-

-

(761,566)

- (9,438,434)

- (10,200,000)

37,740,000

13,260,000

2,196,770

30,500,000

12,498,296

51,789

96,728,813


Profit for the year Other comprehensive (loss) / income

Transfer to insurance reserve Interim dividend for the year ended December 31, 2013 - Re. 1.00 per share

Balance as at December 31, 2013

30,500,000

16,324,138

89,785

100,872,259


Profit for the year Other comprehensive (loss) / income

Transfer to insurance reserve Utilization of insurance reserve Final dividend for the year ended December 31, 2013 - Re. 1.00 per share

(1,029,142)

Interim dividend for the year ended December 31, 2014 - Re. 1.00 per share

Balance as at December 31, 2014

30,500,000

8,117,782

329,039

92,143,591


Ratio Analysis Liquidity Analysis

Liquidity ratios measure the ability to meet current liability with current asset i.e. payment of short-term obligations. The ratio holds different meaning for creditor and owners of the firm. For owner high liquidity means inefficiency of the firm. For owner high liquidity means inefficiency of the management, while high liquidity of the firm is considered favorable by the creditors as they see that the firm can pay their obligations. Following are the most common types of liquidity ratios used by analysts to determine the liquidity of the firm. 

Current ratio

Current ratio is current asset divided by current liabilities 4. It shows a firm’s ability to cover its current liabilities with its current assets. The following table summarizes the current ratio of the firm for the last three years.

Table Current ratios over time (Rs. In thousand)

2014

Current assets

2013

69625377

74917960

Current liabilities 44345349

38583250

Current ratio

1.94

1.57


Interpretations

Generally a current ratio of 2 is considered acceptable, companies listed on standard & Poor 500 Index has an average current ratio of 1.5. In 2014 the current ratio was 1.57. In 2013 the current ratio is 1.94 i.e. PTCL has Rs.1.57 to pay Rs.1 of short term liability. The current ratio is less because PTCL has kept high on investing in capital expenditure compare to 2013.

Current Ratio 2.5

2

1.5

1

1.94 1.57

0.5

0 2014



2013

Quick Ratio

Quick ratio shows the ability of the firm that how quickly it can pay its liabilities without taking into account the inventory and prepaid expense of the firm,


which are least liquid portion of the current assets. Liquidity means the ability of an

asset to be converted into cash without significant loss in value. It is calculated as current assets minus inventory divided by current liabilities.

Table

Quick

Time (Rs. in

2014

2013

Quick Assets

66752835

71242646

Ratio

Current Liabilities

44345349

38583250

thousand)

Quick Ratio

1.51

1.85

Over

Interpretation The quick ratio of the firm is almost to current ratio of the firm as it has decreased from 2005 onward but still it is encouraging, shows that the firm is liquid enough to pay its liabilities at short notice but this trend of increasing is favorable for short term creditors of the firm. This ratio has been affected by the huge amount of dividend declared by the company. The company can easily improve the ratio by reducing the dividend in the future but they have to consider overall situation i.e. investor’s interest, creditor’s interest etc.


Quick Ratio 2 1.8 1.6 1.4 1.2 1 0.8

1.85 1.51

0.6 0.4 0.2 0 2014

2013

ACTIVITY ANALYSIS

Activity ratios measure the operational efficiency of the firm by looking into the t he moments of total assets. These ratios tell us with how much efficiency the firm has in employing its total assets to generate sales and with what frequency current assets of the firm are turned into cash 7. These ratios highlight the activities of the firm throughout the year. Following are some commonly used ratios to determine the activities of PTCL. 

Receivable Turnover Ratio

This ratio provides insight of the quality of the firm’s receivables and how

successful the firm is in its collection. In short it tells the number of times receivables into annual net credit sales.

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore Table Receivable Turnover Ratio (Rs. in thousand)

2014

2013

Total Revenue 81512598 81061355 Receivables

2164072

2164072

Ratio

37.67

37.46

Interpretation

The higher the ratio, the shorter will be the time between the typical sales and cash collection. The trend analysis shows that turn over ratio is increased in 2014. In the year 2014 receivable turnover ratio are 37.67 shows that PTCL is turning its receivables into cash more than thirty seven times in a financial year.

Receivable Turnover Ratio 37.7 37.65 37.6 37.55 37.5

37.67

37.45

37.46

37.4 37.35 2014

2013

Average payable period ratio


This ratio is calculated as operating cost divided by accounts payable. This ratio is used to know about the number of times account payable is made during the year.

Payables turnover ratio = Purchases/ Accounts Payable

Average payable period = Days in accounting period/ payables turnover ratio Table Payable Turnover Ratio (Rs. In thousand)

2014

2013

55682723

53073952

Accounts Payable 44345349

38583250

Ratio

266 days

Purchases

292 days

Interpretation

The ratio is very high in 2014 because the accounts payables are very low in 2014 as compared to that of 2013 which has shown an increase in the ratio. Accounts payable is denominator in the formula and results a very huge effect.


Average payable period ratio 295 290 285 280 275 270

292

265 260

266

255 250 2014



2013

Inventory Turnover Ratio

This ratio determines how effectively the firm is managing its inventory. It is calculated as cost of goods sold divided by inventory. In the case of PTCL we will put operating cost.

Table Inventory Turnover Ratio (Rs. In thousand) 2014

Cost

2013

of 55682723 53073952

services Inventory

2872542

3675314

Ratio

19.38

14.44


Interpretation Inventory turnover ratio was 14.44 in 2013 but increased to 19.38 in 2014. However PTCL has shown good performance in 2014 by controlling inventory turnover.

Inventory Turnover Ratio 25

20

15

10

19.38 14.44

5

0 2014



2013

Total Asset Turnover

The total assets turnover indicates the efficiency with which the firm uses its assets to generates sales. Total assets turnover = sales / total assets


Table Total Asset Turnover (Rs. In thousand) 2014

2013

Revenue

81512598

81061355

Total Assets

179573660 181908478

Ratio

0.45

0.44

Interpretation This means the Company turns over its assets 0.45 in 2014 and in 2013 is 0.44.

total Asset turnover 0.452 0.45 0.448 0.446 0.444 0.442

0.45

0.44 0.438

0.44

0.436 0.434 2014

2013


Debt Ratios



Debt Ratio

Debt ratio measures the proportion of total asset financed by the firm creditors.

Debt ratio = total liabilities/ total assets

Table Debt Ratio (Rs. In thousand) 2014

2013

Total liabilities

87430070

81036219

Total Assets

179573660 181908478

Ratio

0.48

0.44

Interpretation

The higher this ratio the greater the firms degree of indebtness and the more financial leverage it has.


debt ratio 0.49 0.48

0.47 0.46

0.45

0.48

0.44

0.44

0.43 0.42 2014



2013

Times interest earned ratio

Times interest earned ratio measure the firm ability to make contractual interest payment.

Times interest earned ratio = EBIT / Interest

Table Times interest earned Ratio (Rs. In thousand) 2014

2013

EBIT

8011529

19837637

Interest

295193

346477

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore Ratio

28.14

58.26

Interpretation A high ratio suggests that the company would have little difficulty meeting the interest payments on its loans. Conversely , a low ratio is an indication that the company is overextended in its debts . Although low to moderate levels of debt can boost a company’s financial performance.

Times Interest Earned Ratio 70 60 50 40 30

58.26

20

28.14 10 0 2014

2013


Profitability Ratios Ratios that relate profits to sales and investment are called profitability ratios8. It is of two type i.e. profitability in relation to sale & profitability in relation to investment.



Gross Profit Margin

It is calculated gross profit divided by net sales. This ratio tells about the profit of the firm and is also a measure of the ability of the firm’s operation.

Table Gross Profit Margin (Rs. In thousand)

2014

2013

Revenue

81512598 81061355

Gross profit

25829875 27987403

Ratio

92.29%

34.52%

Interpretation The ratio calculated 92.29% in 2014, 34.52% in 2013 indicating that PTCL is effective in producing and selling product and services well above the cost. This trend of decrease in the GP margin is because of decrease in revenue and because of increase in operating cost. Decrease in revenue is because of


decline in tariff while increase in operating cost is partially because of inflation and inefficiency caused by the period of uncertainty due to privatization.

Gross Profit Margin 100 90 80 70 60 50

92.29

40 30 20

34.52

10 0 2014



2013

Operating Profit Margin

Operating Profit Margin measures the percentage of each sales dollar remaining after all costs and expenses other than interest , taxes and

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore preferred stock dividends are deducted; the “pure profits” earned on each

sales dollar. Operating Profit Margin = Operating Profits/ Sales Table Operating Profit Margin (Rs. In thousand) 2014

2013

Revenue

81512598 81061355

Operating profit

4507563

15969824

Ratio

5.52%

19.70%

Interpretation The Operating Profit Margin Ratio is better because the ratio calculated 5.52% in 2014, 19.70% in 2013 is effective.

Operating Profit Margin Ratio 25

20

15

10

19.7

5

5.52 0 2014

2013




Net Profit Margin

Net Profit Margin measures the percentage of each sales dollar remaining after all costs and expenses including interest , taxes and preferred stock dividends have been deducted. Table Net Profit Margin (Rs. In thousand)

2014

2013

Revenue

81512598 81061355

Net profit

5207494

12696133

Ratio

6.4%

15.66%

Interpretation

For PTCL in 2014, 6 paisa out of every sales of Rs.1 constitutes after tax profit where as in 2013 it was 15paisa. The net profit margin is a commonly cited measure of the firms success with respect to earning on sales.


Net Profit Margin Ratio 18.00% 16.00% 14.00% 12.00% 10.00% 8.00%

15.66%

6.00% 4.00%

6.40%

2.00% 0.00% 2014

2013 Series 1



Series 2

Column1

Earnings per Share

Earnings per Share = Earnings available for common stockholders/Number of shares C.S. outstanding Table Earning per share (Rs. In thousand) 2014

2013

Share Capital

5100000

51000000

Net profit

5207494

12696133

Ratio

1.02

2.49

Interpretation


The earning per ratio in 2014 is 1.02 and in 2013 is 2.49 because net profit in 2013 is more

3

2.5

2

2014

1.5

Net profit after 5207494

1

2013 12696133

taxes 0.5

0



Total Assets

179573660 181908478

Ratio

2.89%

6.97%

Return on Total Assets

It is calculated as net profit after taxes divided by total assets. This ratio shows the percentage income generated on per rupee investment. Table Return on Total Assets (Rs.in thousand)


Interpretation Return on investment in 2014 is 2.89% that is a profit over the firm’s

investment resulting from its operations. It explains that the firm has earned a 2.89% over each each rupee invested in 2007. ROI in 2013 is 6.97 respectively

Return on Total Assets 8 7 6 5 4

6.97 3 2 1

2.89

0 2014

2013


Return on Common Equity

Return on common Equity measures the return earned on the common stock holders’ investment on the firm.

Table Return on Equity (Rs. In thousand)

Interpretation

In 2013 ROE was 12.58% and in 2014 it is 5.65%. The trend is negative and decreasing continuously. The debt ratio is not too high which means that there are strong investment opportunities. And there is effective expense management but to of

2014

2013

PTCL will have

5207494

12696133

control

Shareholder’s equity 92143591

100872259

decreasing trend

Ratio

12.58%

ROE.

Net profit

5.65%

its


Return on Equity 14 12 10 8

12.58

6 4

5.65

2 0

2014

2013

SWOT ANALYSIS STRENGTHS PTCL enjoys monopoly State Of the Art International Gateway Exchanges & Satellite Earth Stations . PTCL have largest network with its

state of art technology and new digital exchanges. These are the few important characteristics of PTCL network. 

It is the largest and oldest company of Pakistan


International Submarine Cables



High Capacity National Fiber Optic Backbone Ring



36 Transit Exchanges with easy Facility of Expansion



About 99% Digitization of Country Network



Strong Platforms & Exchanges for Value added Services



Up to date technology



Monopoly over the local market



Skilled Human Resource



Innovative policies



Availability of infrastructure



Liberal policies for IT investments



High profits



Power to make policies



Large network



Globally recognizable



Good Credibility



PTCL has a strong research and development department



Nationwide reach



Good market reputation in the stock exchange

WEAKNESSES



Image – Government organization



Conflicts



Lack of Customer focus



Customer Dissatisfaction and Delayed Responses

OPPORTUNITY




Growth in telecommunication industry



Innovation



Introduce new technology



Privatization & liberalization



Market Size

THREATS



Strong competitors



New cellular companies



Internet USB offers by different mobile company such as Telenor and Mobilink



Effect on Market Share Due To Competition



Internet offers by different mobile company is another threat to the DSL Service by PTCL

CONCLUSION No doubt PTCL is enjoying monopoly but the time is came when competition will force company to change its policies to become favorite telecom service provider in the market & keep its current place & customer base. The company maintains a leading position in Pakistan as an infrastructure provider toothier telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistan’s economic growth.

PTCL has laid an optical fibre access network in the major Politian centres of


Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network on the long side and international infrastructure side, the capacity of two SEA-MEWE. Submarine cable is being expanded to meet the increasing demand of international traffic PTCL should immediately change its finance upper level of hierarchy and should streamline in the good manner. PTCL encourage the billing online system that each and every customer has to pay his/her bill online basis. The system of E-payment which although exist in PTCL finance system but there is need of improvement facility. The image of PTCL being leading Telecom providing is not good in the eyes of common customer especially there are lot of complaints about the including the bogus local calls in the monthly bills of various customers. PTCL also provide the detail of local calls made from and land line number which would be provided in micro level to the customer. Faulty telephone connection fault free within 24 hours in order to maximize the revenue, as revenue of PTCL should sacrifice at the cost of faulty Telephone. PTCL should make customer care centres in remote areas.

Recommendations

Keeping in view the recommendations hurdle / problems the following are some remedial measures, which help to create a better system.  This

study shows that

 There

are very few programs for career development of the employees.

People working in one section or department from years are still with the same knowledge and style of doing job. There should be proper


career planning of employee that not only sharpens the skills of the employee & improve its efficiency but also results in better and improved output for the organization.  Existing

system is not up to the slandered and must be replacing with an

efficient one. 

A comprehensive financial information system is required to be streamlined, so that availability of accurate data records may be insured.

 All

the tool of enforcement of strict financial discipline may be under taken

in order to monitor the whole system. 

All the records should be computerized and for this purpose special computer program should be used.



Employees should be equipped with up to date IT skills and for this purpose refresher & training courses should be designed.

 The

officer may be trained to adopt company culture soft-spoken, good

relations with customers and target oriented. 

Finance and marketing offices and engineers may be sending to international seminars/ workshops to get knowledge of new technique and procedures.



There should be effective human resource department in order to get right people on the right job. Promotion should be made the basis of performance rather than seniority.



Most of the PTCL personnel are non-professional; I suggest that the competent authority of PTCL should be appointing professionals.



There should be effective human resource department in order to get right people on the right job.

Hailey College of Commerce, Commerce, University of the Punjab, Lahore Lahore  Over

staffing and unbalanced distribution of employees in departments.

Like all the government and semi government institutions PTCL has also excessive staff than required. In order to increase the efficiency of worker job is assigned to its caliper to develop his interest in work that increase the output and decrease the overall cost of organization.

In the company there is an unnecessary emphasis on documentation. In transitions a lengthy procedure of paper work is involved that decrease the efficiency and results in wastage of time. It should be the duty of management to automate the documentation of record on line to all offices at same time Bibliography

Internship Report

Recommend Documents