Ptcl Report.

Pakistan Telecommunication LTD


Financial Management A PROJECT ON

FINANCIAL STATEMENT ANALYSIS COMPANY: PTCL

YEAR taken: 2006 to 2010 (Session 2009-2013)


Acknowledgement

Thanks to Almighty Allah for enabling us to fulfill all the requirements for the completion of our project report. It would not be a justice in presenting this report without mentioning the people around us who have been inextricably i nextricably related with the completion of this report. For assisting us in all respect and regards to complete this report our heartfelt thanks to our teacher SIR RIAZ HUSSAIN, who enriched us knowledge with wealth, led ideas to pursue and power of writing this project. It could not have been possible to accomplish this report without his thoughtful guidance and expertise. It is also a great pleasure to record honorable regards to all those who helped us lot in learning and enhancing our knowledge and a nd ability during the project especially. Finally for all possible errors, omissions and shortcomings s hortcomings in writing of this report only are responsible for which we hope that all concerning regards of this report will forgive us.



CONTENTS

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Preface««««««««««««««««««««««««««««««..05 Dedication ««««««««««««««««««««««««««««.06 Executive summary«««««««««««««««««««««««««««08 President message ««««««««««««««««««««««««14 Company introduction introduction««««««« ««««««««.............. «......................................................... ...................................................................... ...............................10 ....10 Financial ratios«««««««« ratios«««««««««««« ««««.................................................... .................................................................................... .....................................43 .....43 Conclusion«««« Conclusion««««««««««« ««««««««««« ««««................................ ................................ ...........................79 ...........................79 References««««««« References««««««««««««« «««««««.......................... «.............................................................. ..........................................80 ......80


PREFACE

We had to complete this project because it was included in our financial management course. This project is about financial statement analysis of PTCL Company. We have have conducted a mathematical research on PTCL financial position. We collected data from internet regarding the basic financial statements about the company. During our project completion our group faced also some troubles, data shortage, their entry problems and time shortage. Anyhow we were passionate about our first project so we completed it with hard work and continuous struggle.


DEDICATION

DEDICATED TO Our PARENTS WHO ALWAYS LOVED US & all those who have a soft corner for us in their hearts


EXECUTIVE SUMMARY

T

his project is about management affairs and management management hierarchy of PTCL. PTCL is

the largest and solely line based communication co mmunication system syste m in Pakistan. The purpose of this project is to practically know about all the aspects of management of PTCL.

This is a report on PTCL (Pakistan Telecommunication Company Limited). This assignment is assigned to us by Sir RIAZ HUSSAIN. HUSSAI N. In this report there is a detailed introduction of the PTCL and its top management, middle management and lower management and their functionality as well services. V fone PAK Net Smart Services We also discussed its financial aspects in which we took the analyzed is liquidity And its profitability profitability position. We got information about PTCL business strategies, Motivations procedures and its internal and external resources and departmentalization, (Engineering finance, marketing and also the HR department of the PTCL. It also includes the functions of HRM e.g. selection, training and development, motivation, maintenance and other functions of HR department. At the end of this project we have written down the SWOT analysis of PTCL Company.



Introduction As per given task we chosen Telecommunication industry due to getting a better place in market and their growth rate boost up day by day. If we see market over view of telecommunication industry in Pakistan that telecom sector is seeing exorbitant growth in Pakistan. Mobile subscribers are in 2009 were 90.7 million and in December 2010 the mobile users reached over 100 million. Currently 102.8 million as of February 2011 , according to Pakistan Telecommunications Authority (PTA), (P TA), 2.7 million subscribers are added monthly. monthly. In fact Pakistan has the highest mobile penetration rate in the region. According to the PTA, Mobilink continues to lead the market with 31.4 million subscribers, followed by Telenor Telenor (24.01 (24.01 million), Ufone (20.18 million), Warid Telecom(17.16 Telecom (17.16 million) and Zong (7.78 million). The telecom infrastructure is improving dramatically with foreign and domestic investments into fixed-line and mobile networks; fiber systems are being constructed throughout the country to aid in network growth. Major businesses have established their own private systems; since 1988, the government has promoted investment in the national telecommunications system on a priority basis, significantly increasing network capacity. There are currently 7 million landline subscribers in the country. Our selected Company is "Pakistan Telecommunication Company Limited" (PTCL) which is the largest telecommunication company in Pakistan. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006 which is a Dubai based company.


Company Profile PTCL operates in one of the most dynamic, deregulated and competitive markets in the world; Pakistan with a population of 171 million people is a fast growing economy with relatively low penetration of Information Communication Technology (ICT) services. PTCL intends to be the leading ICT provider in the region by achieving customers' satisfaction and maximizing shareholders' value and as such PTCL perceives its future as a customer centric organization enhancing its infrastructure and investing in people. PTCL have 6.5 million customers and also continues to be the largest CDMA operator in the country with 01 million V-fone customers the Employee strength of 65,000 The company maintains a leading position in Pakistan as an infrastructure inf rastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistan¶s econo mic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. Since then, PTCL has been working vigorously to meet the dual challenge of telecom development and socio-economic uplift of the country. In keeping with the convergence of technologies in the telecom sector PTCL¶s mobile and internet subsidiaries were created in 1998. Ufone, the country¶s second largest mobile service provider, boosted its operations by rolling out the country¶s largest ever expansion of its network, worth US$ 525 million. The new investment aims to expand capacity and coverage in existing and new cities, as well as providing high speed cellular mobile and wireless data services. By mid-2008 the two major expansions will give Ufone coverage in over 4,500 cities, towns and villages, and all major highways in the country. Pakistan Telecommunication Company Limited (PTCL) is the largest teleco mmunication company in Pakistan. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006.


Corporate Corporate and Commercial Init iatives As part of the transformation of PTCL, the management initiated work on the re re -branding of the Company as a modern and customer-centric national carrier. Externally changing the logo was carried out to reflect the commitment to the customers and the modernizing of the infrastructure. Internally it gave employees a new zeal to stimulate the mindset change from a technology and operations focused company to a competitive carrier that has customer services as its hallmark. PTCL made several investments in infrastructure infrastru cture development and added network capacity to enhance services and expand its reach across the country. The market in Pakistan is extremely competitive and PTCL has the largest nationwide installed network infrastructure capability including switching, transmission, transmissio n, fibre optic backbone, co -location and international capacity. This gives PTCL a unique pos ition in terms of providing to carriers and individual consumers alike. With the introduction of Vfone, the new CDMA-based WLL platform of PTCL, is poised to become the largest fixed wireless telephony network in Pakistan. On the wireless broadband front, a major upgrade of the WLL CDMA network was rolled out in order to provide wireless broadband services in 17 major cities. Broadband Pakistan offers DSL services with unmatched reliability, affordability and connectivity. Customers have the option to packages with varying speeds from 512Kb to 2Mb with unlimited downloads. Broadband roadband customer service is available twenty -four hours a day, seven days a week at 1236 with highly trained and professional representatives. As part of offering converged services, expanding its service portfolio and improving customer retention and acquisition, PTCL initiated the multi -channel Inter Protocol Television (IPTV) project during 2006-07. This will be a landmark addition to the PTCL service portfolio and will enable the company to provide Triple Play (voice, video and data) services over a single fixed line connection. With IPTV the customer will be provided with a single interface to satisfy his communication and entertainment needs along with single billing. Keeping in mind customer convenience, PTCL is actively engaged in bringing an array of bill payment options to its its customers. custo mers. PTCL customers customer s now have the flexibility to choose between dropping a cheque in a drop box at a location near them to sending their payments thro ugh mail at a nearby post office. PTCL has also offered a dedicated service to provide billing information to its valued subscribers who can simply dial '1200' to access instant billing information of the required PTCL service. With the introduction of this service, customers no longer need to personally visit customer service centers to find out what their bill amounts are and the automated service is available twenty-four twenty -four hours a day, seven days a week to further facilitate customers. Moreover, PTCL has introduced a variety of valued added services for its customers while a number of others are in the pipeline. Alongside the many packages and services PTCL is continually seeking ways to facilitate its customers of which payment cards and electronic modes of payments are just a part. On the technical front, PTCL has laid an Optical Fibre Access Network in the major metropolitan centres of Pakistan and local loop services have started to be modernized and


upgraded from copper to an optical network. PTCL has invested in the capacity of two SEA-ME-WE submarine cables to meet the increasing demand of international traffic. Additionally, PTCL is also part of a consortium that will put in place a high-capacity fiber-optic submarine cable that stretches from India to Italy and France via the Middle East, named I -ME-WE, -ME-W E, to provide provide effective resilience to the existing cable systems (SMW3 & SMW4). PTCL has also signed an agreement with Huawei Technologies Pakistan and Hewlett Packard (HP) to jointly launch the µNetwork Operation Center¶ project which has state-of-the-art fault detection and resolution technology. This project would establish one main network operation center and three re re gional ones with the implementation of an alarm management system across the entire PTCL network in an integrated manner. Beyond improved packages and new products, PTCL, as a socially responsible corporate entity, has been pursuing different social causes touching on areas of culture, sports, music, environment and general welfare by supporting different initiatives. As such, PTCL¶s CSR activities and new ventures are warmly welcomed .


President's Message (PTCL)

I have taken immense pride in assuming the duty as President and CEO of PTCL, which is a great opportunity for me to execute my responsibilities as a team leader. leader. To me Pakistan Paki stan and PTCL are synonymous with wit h an opportunity for growth. The potential of this growth is visible to me as it is about the human capital we have in the form of talented and experienced employees. I can assure you that with the traditional dedication and and determination of PTCL workers w orkers we will transform this company into a world class ICT company. I am proud of my fellow colleagues who have been leading the market so far and have been adapting to changing technological advancements. After the deregulation in the telecom sector of Pakistan, PTCL is now again ready to face new challenges in a competitive environment. We are poised to retain our leadership position by giving PTCL a new and improved look. The new colors of the t he Logo are in context with every Pakistani¶s sense of identity and patriotism; green and white w hite being the colors of purity and honesty, the colors of trustworthiness and integrity, the colors of Pakistan¶s flag and the colors of every Pakistani¶s passion. Be assured that PTCL will remain the people¶s first choice of communication in the future. Promising you the best of our services, at all times. Best Wishes

Walid Irshaid President & CEO


Vision

To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'. The future is unfolding around us. In times to come, we will be the link that allows global communication. We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to . shape a future that offers telecom services that bring us closer.

Mission To achieve our vision by having: 1. An organizational environment that fosters f osters professionalism, motivation and quality. 2. An environment environment that is cost effective and quality conscious. 3. Services that are based on the most optimum technology. 4. Quality and time cincious customer services.

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HISTORY (PTCL) 1947 to 1996 From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, cellular, card -operated pay-phones, paging and, lately, data communication services. Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid mid -1996

1998 to 2003 In 1996, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. It also paved the way for the establishment of an independent regulatory regime. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Teleco mmunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan PTCL launched its mobile and data services subsideries in 2001 by the name of Ufone and PakNet respectively. None of the brands made it to the top slots in the respective competitions. Lately, however, Ufone had increased its market share in the cellular sector. The PakNet brand has effectively dissolved over the period of time. Recent DSL services launched by PTCL reflect this by the introduction of a new brand name and operations of the service being directly supervised by PTCL instead of Paknet. As telecommunication monopolies head towards an imminent end, services and infrastructure providers are set to face even bigger challenges. Pakistan also entered post-monopoly era with deregulation of the sector in January 2003. On the Government level, a comprehensive liberalization policy for telecom sector is in the offing.

2004 to Date In the middle of 2005 Government of Pakistan had decided to sell at least 26 percent of this company to some private agency. There were three participants in the bet for privatization of PTCL. Etisalat, a Dubai based company was able to get the shares with a large margin in the bet. In this year when Government was going to privatize the company there was country wide protest and strike by PTCL workers. They even disrupted Phone lines of some big Government institutions like Punjab University Lahore and man y lines of public sector were also blocked. Military had to take over the management of all the Exchanges in the country. They arrested many workers and put them behind bars. The contention between Government and employees ended with a 30% increase in the t he salaries of workers. Many big change events are happening in PTCL at the moment after its privatization. p rivatization. these include the VSS (Voluntary Separation Scheme for its employees), ERP (SAP based), restructuring, B& CC (Billing and Customer Care Software) etc. Another seemingly minor change was change of brand identity (logo) that will present PTCL's new face after privatization, with greater focus on customer satisfaction and bringing about of new advancements in telecom for Pa kistani consumers.


Alexander Graham Bell (3 March 1847 ± 2 August 1922) was an eminent scientist, inventor and innovator who is credited with the invention of the telephone. His father, grandfather and brother had all been associated with work on elocution and speech, and both his mother and wife were deaf, profoundly influencing Bell's life's work. His research on hearing and speech further led him to experiment with hearing devices that eventually culminated culminat ed in Bell being awarded the first U.S. patent for the invention of the telephone in 1876. Many other inventions marked Bell's later life including groundbreaking work in hydrofoils and aeronautics. In 1888, Alexander Graham Bell was one of the founding members of the National Geographic Society. In reflection, Bell considered his most famous invention an intrusion on his real work as a scientist and refused to have a telephone in his study. Upon Bell's death, all telephones throughout the United States "stilled their ringing for a silent minute in tribute to the man whose yearning to communicate made them possible

3 March 1847 Edinburgh, Scotland. Born 2 August 1922 (aged 75) Died Nova Scotia, Canada. Beinn Pernicious anemia Bhreagh, Cause of deathUniversity of Edinburgh University College London University of Toronto Inventor, Scientist, Professor ( Boston University) Education Inventor of the telephone Occupation Mabel Hubbard (married 1877±1 922) Known for (4) Two sons who died in infancy and two daughters Spouse Alexander Melville Bell Eliza Grace Symonds Bell Children Gardiner Greene Hubbard (father-in-law) Gilbert Hovey Grosvenor Parents (son-in-law) Melville Bell Grosvenor (grandson)


Subsidiaries 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 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 cellular industry industry is a direct result of the successful implementation implementation o f 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).

Privatization The growth of the cellular sector in Pakistan can also be attributable to good governance policies of the government of Pakistan and the Privatization Commission. In April 2006, Emirates Telecommunication Corporation, which is commonly known as Etisalat, has assumed management control of Pakistan Telecommunication Telecommunication Corporation Ltd ± part of the $2.6bn deal to buy a 26% stake in PTCL. The successful privatization of PTCL, and consequently Ufone, is hailed as ushering in a new era for telecommunications in Pakistan. Now, under the management of Etisalat, Ufone will concentrate on customer needs and benefits and is more determined than ever to be the leading cellular player in the market. Ufone has been known known for providing superb superb propositions propositions and quality quality service to its cust omers. With the new expected investment, Ufone can now aggressively expand its network coverage.

Key Accomplishments Accomplishments Ufone has always played a pivotal role in the development of the cellular market in Pakistan. For the most part, it has been a step ahead in introducing innovative products to the market. Ufone was a pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) in Pakistan, and lead the way in introducing GPRS international roaming and prepaid international roaming for these services in the Pakistani market.

Performance As mobile users in the country have reached over 28 million at a very rapid pace, Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 6.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over 200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto its network. A remarkable achievement indeed, especially considering the fact that two new international players also entered into the market in 2005. Subsequently the growth in subscriber base caused a healthy trend in revenues which have doubled.

Brand While keeping keeping its tradition of being the trend setter in the industry, industry, Ufone changed changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for masses. In keeping with the upcoming competition and market dynamics, Ufone increased its focus on the youth segment (which comprises 50% of the population), with the Prepay brand. By designing


market focused products, Ufone¶s Uf one¶s brand team launched aggressive aggressive campaigns, which further f urther increased the brand equity. The new brand image gained huge popularity amongst the targeted market. A recent marketing survey conducted by a prominent marketing research company showed that Ufone has considerably increased its brand visibility and image. Ufone¶s Prepay brand is now considered to be one of the most favored brands by the youth market and is followed by other mobile mobile operators launching their respective respective br ands for the youth market. Product and Pricing

Since the recent telecom de-regularization and the issuance of two more GSM licenses, the Pakistan telecom market has become very competitive and is changing at a very fast pace. Remaining competitive has now become a challenge. Ufone once again set a trend in the market by introducing simplified simplif ied tariffs. The company has two t wo main product lines (prepaid and post paid) for all its valued customers. To capture every segment of the market, Ufone has further customized its packages. Postpaid is further differentiated into 4 plans including a very competitive Zero Line Rent package. Ufone has introduced a very simplified tariff structure for its customers with a flat rate of Rs. 2.50/ minute to any operator all over the country. The on net off peak rates also remain amongst amongst the lowest at Rs. 1.50/ minute. Similarly Ufone has the most competitive SMS, GPRS and MMS rates having the lowest international SMS rate at Rs. 1.50. These simplified tariff plans and user friendl y packages have greatly helped Ufone Ufone in becoming the fastest growing operator in the country. Ufone understands the need to communicate effectively and efficiently at all levels of society and its various products are catering for the needs of the Pakistan corporate market. It offers services such as mobile office and the Virtual Private Network (VPN) which have revolutionized communication. International Coverage

Ufone provides International Roaming facility with more than 150 international operators across 79 countries. Ufone has GPRS roaming agreements with several international operators and also provides prepaid roaming facility to selective destinations. Customer Service

Ufone is proud to have have an efficient and friendly customer customer service servi ce through 21 compa compa ny-owned Sales & Customer Service Centers and nearly 250 franchisees across the country. The outlets are able to service the customers with innovative solutions, and are empowered with Web based franchise management systems. Ufone is poised to face the ever increasing challenges of the market and is confident it will attract new customers. It has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility. Network Coverage

Ufone has always believed in a solid commitment to growth, security and reliability. Therefore, Ufone has always balanced its expansion efforts and quality of service. With a total current investment of $400 Million, Ufone has network coverage in more than 260 cities and towns and across all major highways of the country. Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a company committed to excellence. Under the new vision of Etisalat and with the support and collaboration of its employees and vendors, Ufone aspires to be the best in the market by


DEPARTMENTS OF PTCL Every organization is divided into definite departments. Each department performs different kind of jobs and requires staff with specialized skills to handle particular job. This increases the efficiency of workers and makes. There are several aspects on which departmentalization in an organization can be based. The division can be done on the basis of function, product, customers or geographical locations. 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. 9.Marketing department 10.Customer care departments 11. Revenue department

HUMAN RESOURCE RESOUR CE DEPARTMENT DEPARTMENT. 1. It is a huge organization and being considered as one of the biggest company in Pakistan. 2 .It has more than 56,000 employees employees and a hu ge network of organizational management has been spread throughout the country. 3 . PTCL is engaging a substantial number of experts and specialists of standing caliber in different spheres of profession. 4.Job analysis and revision revision of jobs description was undertaken for improving the performance standards. 5. To meet the future 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 re sources have been taped.


6. Special training courses and workshops have been conducted for the top and middle management through reputed organizations like LUMS. 7. Efforts are being made to 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

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 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 organization because without finance any organization can¶t run its business. It plays an important role in determining the long term objectives and evaluating the feasibility of the business. The financial activities of PTCL have been split up into three major branches: Finance, Accounts & Revenue. The details regarding this section will be covered in finance section with reference to my project Commercial Department

1. Commercial section with qualified/experienced staff is being established. 2. Company section is taking both short-term and long-term view of emerging trends of highly competitive markets as its monopoly is coming to an end. 3. It 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 4. The Company likes to reiterate that it will continue to pla y a prominent role in Telecom sector of Pakistan. 5. It considers that one of the most important aspects of the forthcoming competitive environment is pricing of products and services. The new paradigm would require cost-based cost -based services with thin-profit thin-prof it margins but higher volumes. Inherently, PTCL services were not cost-based. There were in-built subsidies and long 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. Technical Department This department is engaged in the management and control of technical aspects of the company, e.g. technical manpower, technical training, technical equipment, etc. IT Department This department is established to introduce 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. Marketing Department Marketing Department is called a revenue-generating department of an organization. Marketing Department undertakes market research and gives feedback to management about customers needs and wants on the basis of which, products and services are developed and positioned to give value to the customers. CUSTOMER CARE & CUSTOMER SERVICES DEPARTMENT PTCL has established its Customer Services Department at different levels the overview of the said department is as follows. Corporate Customer Care Center To facilitate Corporate Customers PTCL has established Corporate Customer Care Centers at all Operation Regional Head Quarter Level, in all the meager cities country wide. The Corporate Customers can get their problems resolved under one roof in a one window environment by dialin g UAN 111-20 20 2. The Customer Relation Officers register the complaints & forward these to the related office. Customer Services Centers To facilitate consumers PTCL has established Customer Services Centers at all Tehsil Level cities/offices. Here the consumers can use Fax Facility, Voice Telephony for Local/NWD/ISD dialing. On divisional Offices Level duplicate phone bills may also be obtained from C.S.C¶s. Toll Free Help Lines PTCL offers state-of-the-art call call center network to its all type of valued c ustomers for convenient frequently asked Questions, Complaints regarding their services, T/No


enquiry. The following three Toll Free T/Numbers are available for this purpose. REVENUE DEPARTMENT The revenue generated by the marketing department through selling the company services/products is collected by the Revenue Department. The roles played by the Revenue Department are following: i. Bill Printing & Distribution ii. Issuance of Duplicate Bills. iii. Error correction of Bills. Iv Collection of defaulter amounts. Bill Printing & Distribution: The printing is basically carried out by regional billing computer center at every regional headquarter. These printed bills are handed over to Post Office after sorting & stapling by the Assistant Revenue Officer¶s staff at Distt level Issuance of Duplicate Bills In case of missing or damaged bills received to customers the correction is also Revenue department¶s responsibility. For this purpose the revenue office deputes its staff for each Tehsil level PTCL office during the bill payment dates normally from 18th to 30th of each month. Error Correction of Bills In case of late payment or any other discrepancy due to missed collection by banks the previous amount is also included in the new bill. The revenue office is responsible for such kind of correction. Collection of Defaulter Amounts The amounts defaulted by the customers or the bad debts are also collected through revenue department. Each Telecom Recovery Inspector (TRI) is assigned a target of bad debts collection on monthly bases. Now a days as incentive is also offered on more than 100% recovery each month. Mobilink

Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having more than31,958,597 users base which is the 36% of total cellular industry of Pakistan. Mobilink isbasically competing Ufone which is subsidiaries of PTCL. Telenor Telenor is another cell phone company it have 17,841,074 subscribers which is 20 % of totalmobile industry. Warid Tel Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more than15,114,678 subscribers which is 17% of Pakistan mobile industry. ZONG Zong is although new company company and offering differen t packages and attracting more and morecustomers and it can be future market leader


World call Worldcall Telecom is a service provider company and is dealing in telecommunicationservices, cable providers, internet service provider, and payphone services. They are operating inPakistan since 1996 when First Securities Commission began their operations in Pakistan. Theystarted their cable service in1998 from Lahore. Then in 2005, they got the license of wirelessloop for 14 major divisions in Pakistan. They are improving their business tactics and planningas the time passes and become number one in private telecom services. Salman Taseer is thechairman of the company. The major decision making lies in the hands of executives. Forinternal communication they are using LAN. Managing directors are responsible for the projectsmanagement and also for the operations of the business. At operational level, Worldcall needs tohave information about its daily operation like daily sales transactions, No. of orders placed bythe franchises, no of complaints from their customer. Company should be aimed to check theSWOT analysis to increase the efficiency of company. External environment has a great effect onthe company. The major impact is of technology, because infrastructure and the efficiency of thecompany depend on the use of technology. The threat of entrance is high, there are manysuppliers, bargaining power of the buyer is high, but there is no threat of substitutes of thecompany. The major competitors of the company are PTCL, WATEEN, CY BERNET, GSMoperators. GSMoperators.

Services PTCL Cricket Info Service All the existing and new PTCL customers either of PSTN or WLL, who are CricketDiehards/affecters of electricity load sheddingTelecom market is coming up with different valued added services these days as the customer demand is evolving due to fast and furious daily life in which people don¶t get time for recreation like going out with family and friends rather prefer sitting at their premises andenjoying some readily available services.

Pakistan Te lecommunication lecommunication LTD

This part of world being the diehards of Cricket game,do get time for cricket whether they have to go .You just have to dial 1216 and listen to the livecommentary of ongoing match. PTCL does have solution to their problems!!!

Previously T-20 World Cup and Asia Cup 2010 and now for all futures games, PTCL proudlyannounces Cricket info service through which PSTN and VFONE subscribers of PTCL will beable to listen to live live commentary of cricket cric ket matches just by dialing a four digit access code 1216and listening to the live commentary.´ Package Tariff Tariff::

Each call will be charged @ Rs 1 / Minute (Exclusive of tax) No service subscription required. Personal Global Number Service

Due to an ever increasing number of Pakistanis migrating overseas each year, the amount of international calls being made has amplified remarkably. PTCL has introduced ³InternationalPlus´ that will provide PTCL subscribers with lowest international call rates and more talk time.Subscribers need not unsubscribe from their existing p ackage to be able to benefit fromInternational Plus. In fact subscription to International Plus will enable them to talk with their near and dear ones in UK, US, Canada, Australia and China for a fixed monthly charge.³International Plus´ will provide provide PTCL subscribers with lowest international call rates and moretalk time. With this package customers will be able to talk freely with their near and dear ones inUK, US, Canada, Australia and China for a fixed monthly charge. All international plussubscribers plussub scribers will get 500 international minutes minutes each month and will be charged Rs. 499 monthlyfor calling on landline & mobile mobile both in USA, Canada & China and on landline only in UK &Australia.A. No, this will be an Opt In Package and customers who already are on Pakistan Plus, BasicPlus or Value Plus will have the option of subscribing to International Plus in addition to their existing Price Plan.countries can we call by using International Plus?. Landline & mobile in China, USA, Canada and landline only in UK & Australia.PTCL in its endeavor to provide quality services at affordable prices to its subscribers, has yetagain come up with an amazing Tariff for its wire line subscribers. PTCL wire line subscriberswill now be able to call anywhere in Pakistan at Rs.1 per minute and enjoy talking to their lovedones or business associates without worrying about the cost. Rs. 1 per minute for all Local and Nationwide Long Distance Calls (PTCL to PTCL and PTCL to V.FONE ) Free Conference Call Service for all PTCL Wire line subscribers from 1st March-2010 to31st Dec-2010 PTCL Premium Number Service

To be a part of a fast growing telecom market and to get aligned with the number of serviceswhich Cellular companies are providing, PTCL once again has come up with another innovativeand appealing offer which is a part of ongoing Synergy Projects with its sister concernedcompany UFONE .Through this offer any customer who wants to acquire a new telephone connection (NTC) canalso get UFONE SIM with the same number (03xx -7 digit) as of PTCL Landline. Landline. There wouldn¶tbe wouldn¶tbe any special charges charges for UFONE SIM , on the top of that UFONE SIM would be sent to thecustomer through TCS.This shows PTCL¶s commitment towards its valued customers by providing them a service withan ease of remembering just one number for both landline and Mobile Phone. This also givescomfort to your callers as they


don¶t have to remember more than one number.Product Tariff: No special charges charges for PTCL PTC L number/UFONE SIM Same installation fee and line rent charges for PTCL Landline. SIM will be sent to the customer through TCS. Customer just needs to pay ordinaryUFONE ordinaryUFO NE charges (Rs 150 and a balance of Rs 100 will be available) Order Line:

This service can be acquired by calling 0800 80 800 helpline or through walk -in channels All the customers who want to have new PTCL landline connection and are interested to get theUFONE SIM with the same as of landline.There landline.There are no special service charges for PTCL#/UFONE PTCL#/UFO NE SIM. There will be same installationfee and line rent charges. SIM will be sent to the customer through TCS. Customer just needs topay ordinary UFONE charges (Rs 150 and a balance of Rs 100 will be available) By calling 0800 8 0800 helpline or through Walk-In channels.Customer yet. PTCL EVO offers exciting new packages

Making its products more affordable for its valued customers, Pakistan TelecommunicationCompany has launched more economical and exciting EVO packages starting from as low asRs.799 only.The packages are designed while keeping all sort of customer base in mind; either they are casualsurfers on the go or users who need to be connected all the time. EVO is offering new EVO GO1G B package for casual surfers at an amazing price of Rs.799 only. Other packages include,EVO 2G B Lite package, and WIZ package with a wholesome 5G B download that makesdownloading the games, music and occasional videos at a far higher speed. Whereas EVO MAXpackage offers unlimited download throughout the month. SEVP Commercial Naveed Saeed saidthe launching of these packages is the extension of the whole thought behind this product i.e.since there is no limit to imagination, why there should be any limit to what one can do withEVO.He further added that customer¶s convenience and affordability has always been the primeobjective behind launching any product or package. That is why PTCL products have becomecustomers top priority in recent times and we pledge to continue with providing them with thebest possible.EVP Commercial Planning Syed Asim Ali said PTCL EVO because of its 3G technology gives customers the flexibility to roam around freely like never before while they stay connected. Andin future we plan to introduce a variety of innovative services and packages for our customer¶sfacilitation, which is our ultimate goal V FONE Call PackagesSimple

For those customers how don¶t make calls call s ,for this there is no daily charges ,but1.5 rupees to VFONE TO V FONE to v fone.2.00 rupees v fone to PTCL and 2.5 rupees for mobile and theseare permanent charges Family

For those customers how make calls, for this there is 5 rupees daily charges, free rupeesto v fone to v fone.1.5 rupees v fone to PTCL and 2.5 rupees for mobile and these are per mintcharges


Unlimited For those customers how they make calls at both v fone and PTCL, for this there is 20 rupeesdaily charges, free to v fone to v fone. FREE rupees v fone to PTCL and 2.5 rupees for mobileand these are permit charges

PTCL Smart TV A PTCL digital multi channel Television service that delivers television programs to householdsvia a broadband connection using the Internet Protocol (IP) technology. The service requiressubscription and Customer Premises Equipment (CPE). An IP-based platform allows the TVservice to be µsmarter¶ than the traditional broadcast and cable TV services, by making the TVviewing experience more interactive and personalized.Smart TV features unction is available to the TV viewers for the first time in Pakistan and onlythrough the PTCL Smart TV service. Parental ControlThis feature enables parents to restrict certain channels which are not suitable for juvenileviewing. Restriction is enabled by assigning a password to particular channel(s) thusempowering parents to control the content their children can watch. EPG (Electronic Program Guide)Electronic Program Guide (EPG) is an extremely responsive and feature-rich application thatmanages viewer interaction during channel and program selection. It is an on-screen guide toschedule broadcast television programs, allowing viewers to navigate, select, and discover content by time, title, channel, genre, etc, by use of their remote control. It also provides accessto billing details, c hanging password and managing favorites. VoD (Video On Demand)Video on Demand is a service that provides end users to interactively request and receive videos.VoD permits a customer to select a program from a catalogue using EPG (Electronic ProgramGuide). The play out of the selected movie starts nearly instantaneously on the customer's TV. Afilm that is chosen, for example, will be available for multiple viewing during 24 hours withoutany extra charge NVOD (Near Video On Demand NVoD is another exciting feature working like a community TV Channel. A number of channels are allocated for NVoD. Popular or recently released movies and proVoD isanother exciting feature working like a community TV Channel. A number of channels areallocated for NVoD. Popular or recently released movies and programs are played onNVoD channels and are are available to all Smart TV viewers. mers at no extra cost. In case of NVoD channels, customer feedback plays a pivotal role in content selection. List of channels[uture ChannelsThese channels are to be available soon.PTCL has still 125 channels and these channels are work satisfactorily future channels will beavailable

SER SERVIES FOR CORPORATE CUSTOMERS PTCL is striving hard to facilitate its valued corporate customers at each level of ser vice. PTCLoffers a host of unmatched services to suit the needs of the Corporate Customers. The list of Corporate Services is given as under. For more information regarding any of the followingservices, PTCL Corporate Customer Centers can be contacted.

IN BASED VALUE ADDED SERVICES 0800-Toll Free PTCL Calling Cards Domestic andInternational Premium Rate Service 0900 Virtual Private Network VALUE ADDED SERVICES Universal Access Number (UAN) Universal Internet Number (UIN) ISDN PRI TelePlus (ISDN/ BRI) Local /Domestic/International Leased Bandwidth AndPoint To Point Leased Lines (DXX) Local


Leased Circuits (2 Wire/4 Wires) (DXX) DigitalFacilities Digital Subscriber Loop (DSL) Co Location Tele mail Call Centers (new)Universal Access Number (UAN)UAN (Universal Access Number) service ser vice is ideal for organizations organizations Engaged in marketing of products or services. Here is a list of business who can avail UAN Service. Banks NewspapersAirlines Hotels Shipping Lines Fast Food Outlets Consumer Products Companies Insurance Credit Card Companies Travel Courier Services Utility Services Trading Companies Stock Brokers Voice Messaging Service: (VMS)

With PTCL Messaging Service, you can have all for (or Desired) calls recorded when you areabsent, busy on phone or do not want to attend the calls for any reason. You can, later on at your convenience, retrieve all recorded messages from any telephone anywhere in the country.Security of message is ensured against eavesdropping through subscriber controlled password.PTCL VMS V MS is designed for those who do not want to miss a call or Fax because that can bebeneficial.Great for anyone owning a telephone or Fax, at home or business. Much more powerful andflexible than answering machine due to Message options available in your voice mail system.Internship ReportFeatures Call answer Fax Messaging Notification Capacity 10 messages Free for user paying RS.2000/- or more bill/month.PTCL Messaging Plus:PTCL MESSAGINH PLUS is designed for small and medium business enterprises havingproblems with managing telephone message.PTCL MESSAGING PLUS will definitely handle these problems for you. Advanced messagingfeatures save time, make you truly mobile and increase productivity. Co- Location Centers Pakistan Telecommunication Company has taken land mark decision to establish co locationcenters throughout the country. Service concept this service is basically for telecom data and I.Tcompanies. These companies will install their e quipment directly in PTCL premises in readyfitted environment. The primary purpose is to provide a number of resilient and centralizedconnection centralizedconnection and control facilities in which co-location center¶s communication can be located. Benefits Easy access to local & international connectivity Quick deployment of servicesMinimum capital investment and cost saving higher reliability and quality of service Full

.


Pakistan Telecommunication LT

They offer to search tele phone info via Directory.

A family Ad to connect with everyone at every time via PTCL land line or WLL (Vfone).

Pakistan Telecommunication Telecommunication LTD

R egarding egarding

PTCL Broadband DSL connection offer and service and extremely good service to 256kb/minut with 30 to 40 GB per month.

Toll Free Service 0800 to grow your business and costumers. costumers.


In This Ad¶s they show their all Product and Services and very beautiful Ad. Ad.

Pakistan Telecommunication Telecommunication L TD

New offers for PTCL calling cards form Price Rs. 50 to 1000 with many facilities such as balance transfer and low rates etc.

Pay less Talk more new offers PTCL Vfone, 03 new packages "Bachat, Sahula Sahulat, t, Kaf ay at "


PTCL Subscriber Information Top of Form Enter Name:

Enter Address:


Bill Payment Options Bill Payment

Keeping the tradition of providing convenience to its customer at their doorstep, PTCL offers another valuable prepaid prepaid card - "PTCL Bill Payment Card" - Through this card you can pay your telephone bill through your PTCL fixed line round the clock round the month, while staying at home. It also has a Card Binding feature allowing you to pay multiple times. PTCL Bill Payment Card is: 1 - Convenient 2 - Hassle Free 3 - Eliminates Commuting Cost 4 - No Extra Charges PTCL Bill Payment Card is available in denominations of Rs.300, Rs.500 and Rs.1000 at a shop near you.

Cash Payment Options BANKS PTCL valued customers can pay their bills through out the country at the following banks in their respective areas: 1. ABN AMRO Bank 2. Allied Bank of Pakistan 3. Askari Commercial Bank 4. Bank Alfalah 5. Bank of Punjab 6. Bolan Bank 7. Citi Bank 8. First Women Bank 9. Habib Bank Limited 10. Industrial Development Bank of Pakistan 11. KASB 12. MCB 13. National Bank of Pakistan 14. Punjab Provincial Cooperative Bank 15. Standard Chartered Bank / Union Bank 16. United Bank Limited 17. NIB Bank

PAKISTAN POST OFFICES (PPO) PPO has provided this facility through their more than 3,000 branches across the country .


ELECTRONIC BILL PAYMENT PTCL is actively engaged in bringing more convenience to its customers. For this purpose, it has made arrangements with the leading banks of the country to allow its customers to pay their PTCL bills through the electronic modes stated below: a. MCB Bank Limited i. MCB ATMs ii. MCB Call Centre (111-000-622) iv. Internet Banking b. ASKARI COMMERCIAL B ANK i. Prepaid card ii. ATM card iii.Internet Banking Service Changes Shifting of Phone

Customers can shift their telephones if they want to change their current premises /offices etc. How to Apply?

Customers can apply for the shifting of telephone t elephone to the concerned Divisional Engineer Phones / SDO Phones / Customer Service Centre. Tariff

The charges for shifting of telephone are Rs. 500 (excluding 15% GST) irrespective of whether the telephone connection is shifted in the jurisdiction of the same exchange or to another exchange area within the same multi exchange area. Change of Telephone Number

Customers can change their telephone numbers if they need to. How to Apply?

Customers can apply for the change of telephone number to the concerned Divisional Engineer Phones / SDO Phones/Customer Service Center. Tariff PTCL charges for change of telephone number is Rs. 500 (excluding 15% GST). However a customer can get his telephone number changed subject to availability of spare number in the exchange and on clearance of dues against old o ld number. Transfer of Ownership

Customers can change the name/ ownership of their telephone numbers if they need so. How to Apply? Customers can apply for the change of ownership to the concerned Divisional Engineer Phones / SDO Phones/Customer Service Centre Tariff Currently PTCL charges Rs. 500 (excluding 15% GST) for change of name/ownership. However PTCL will not charge customer for this service after 18-08-04.


Restoration of Telephone Restoration Of Telephone Closed Due To Non-Payment Of Bill

Customers can get telephone restored within 59 days after clearing all outstanding dues. The outstanding dues to be cleared by the customer for restoration of telephone include the following: All outstanding amounts against his telephone including surcharge. Line rent for two months following the month of default. Restoration After 59 Days

If telephone connection is restored after 59 days, the following conditions will apply: Telephone connection will be restored subject to technical feasibility. Customer has to pay the following charges for the restoration of service: All PTCL charges outstanding against his previous telephone connection. Connection restoration charges of Rs. 500 + 15% GST. National Dialing Codes,

Approximately 100 city's dialing codes are available on online PTCL website. International Dialing Codes

Approximately 247 Country's dialing codes are available on online PTCL website. V alue Add Services Toll Free.0800

The benefits of Toll-Free Toll -Free numbers to businesses are widely understood. For example, in the USA the biggest economy in the world, over 90% of businesses businesses have a t oll-free number. Some of the benefits of toll-free 0800 number to your business include following. Benefits of Toll-free 0800 A 0800 number encourages your customers to call you NOW, rather than "think about it" later. A 0800 number encourages potential bu yers to call YOU, not your competitors. Hence giving your business an edge over competitors who do not have such a facility. A 0800 number means that you can compete with big national names, for little extra cost. A 0800 number expands your geographic acce ssibility. Customers Custo mers out of your area are no longer deterred by having to call long distance. It gives your business a national and international (with international 0800) market presence. A 0800 number can cut your advertising costs, since less space is needed to encourage the customer to call. A 0800 number enhances your image with customers and the market and pushes you forward as a "customer friendly" business. A 0800 number attracts more enquiries. A 0800 number encourages customers to place sales orders by toll-free phone or toll-free fax. Your 0800 number is location independent, so you can be based anywhere and have a business with national and even international customer accessibility. y

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UAN (Universal Access Number) UAN (Universal Access Number) service is ideal for organizations engaged in marketing of products or services. How it Works?~ UAN consists of 6 digits, preceded by 3 digit code of 111, common to all UANs. Example 111 - 20 20 20 UAN operates on Existing telephone connection without disturbing normal phone number. UAN never changes. If you move your office or your normal telephone number is changed, your UAN will remain unchanged. UAN works both in multiline PA BX and multi phone connections. The incoming call hunts for a free junction or free phone connecting instantly. UAN service can also be used for facsimile. dialling the area code first. Example: (021) 111 -20 20 UAN can be accessed from other cities by dialling 20. Why Use the UAN? UAN makes it easier for customers to contact you by dialling a simple number.

A quick and easy access to make queries and complaints increases customer satisfaction. Consumers are increasingly aware of the benefits of doing business by phone because it is time saving and both convenient and cost saving. UAN of Your Choice

You will get the UAN of your choice. You may choose any combination of 6 digits from 0 to 9. Choose a simple memorable number. Example 007 007 or 13 13 13 or simply 900000. PTCL allots the UAN on a first come first served basis.


Number Allocation

A minimum of two numbers is allocated to each ISP. E -1 level standby numbering is also available if lines from two different exchanges or PSTN connectivity is required. How to Apply

Prescribed UIN service order forms are available at Corporate Customer Centres. Please fill up the UIN service servi ce form and submit it to the office off ice of Manager Corporate Customer Centre along with pay order/bank draft covering installation fee and subscription charges in favour of Pakistan Telecommunication Company Limited. Marketing Campaigns Print Media

Print Media we already discussed in Advertising section, here is some images for just references,



Financial analysis Of Pakistan Telecommunication


Ratio analysis Liquidity ratios

Liquidity ratios are used to measure firm¶s ability to meet short term obligations. They compare short term obligations to short term current resources available to meet these obligations from these ratios, much insight insight can be obtained into the present cas h solvency of the firm and the firms ability to remain solvent in the event of adversity. Current ratio:

Current assets are divided by current liabilities. It shows a firm¶s ability to cover its current liabilities with its current assets. Current ratios= current assets Current liabilities 2006

2007

2008

2009

2010

1.65

2.19

1.73

1.50

1.51

Interpretations: Comparing internally theses ratios Ptcl Ptc l ratio has decreased from 2.19 to 1.50. 1.50 . It means that Ptcl is deppreciating its liquidity position. So Ptcl is depreciating its liquidity position.

Total assets turnover: 2006

2007

2008

2009

2010

7.33

0.42

0.44

0.38

16.22

Interpretation: It basically indicates company¶s ability to use its asset base efficiently to generate revenue. Turnover is decreasing as compared to 2010. It has increased from 0.38 to 16.22. It means that Ptcl has utilize its assets efficiently to increase its revenues.


Working capital A measure of both a company's efficiency and its short-term financial health. Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory). If a company's current assets do not exceed its its current liabilities, then it may run into trouble paying back creditors in the short term. The worst -case scenario is bankruptcy. A declining working capital ratio over a longer time period could also be a red flag that warrants further analysis. For example, it could could be that the c ompany's sales volumes are decreasing and, as a result, its accounts receivables number continues to get smaller and smaller. Working capital also gives investors an idea of the company's underlying operational efficiency. Money that is tied up in inventory or money that customers still owe to the company cannot be used to pay off any of the company's obligations. So, if a company is not operating in the most efficient manner (slow collection), it will show up as an increase in the working working capital. This ca n be seen by comparing the working capital from one period to another; slow collection may signal an underlying problem in the company's operations. The working capital ratio is calculated as:

WORKING CAPITAL = CURRENT ASSESTS

2006

2007

2008

2009

2010

50,168,177

53,560,840

39,603,406

54,220,241

45,450,236


Interpretation Working capital is to meet day to day operations in 2009. In 2009 it ismore than other years because ptcl has low trade debts. And ptcl has more bank balance.

Net Working Capital, Net Working Capital, is defined as Current Assets minus Current Liabilities. Current assets include stocks, debtors, cash & equivalents and other current assets. Current liabilities include all the short short -term borrowings. Net working capital is calculated as NET WORKING CAPITAL = CURRENT ASSESTS ± CURRENT LIABILITIES

2006

2007

2008

2009

2010

19,892,645

51,116,099

15,033,611

18,133,919

15,257,458

Interpretation. In 2006 our net working capital is more than t han any other year. Because ptcl has more current assets and less lia.


AVERAGE COLLECTION PERIOD The approximate amount of time time that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients. Due to the size of transactions, most businesses allow customers to purchase goods or services via credit, but one of the problems with extending credit is not knowing when the customer will make cash payments. Therefore, possessing a lower average collection period is seen as optimal, because this means that it does not take a company very long to turn its receivables into cash. Ultimately, every business needs cash to pay off its own expenses (such as operating and administrative expenses). Calculated as:

AVERAGE COLLECTION PERIOD = 365 / ACCOUNT RECEVABLES TURNOVER 2006 84.88 days

2007 63.81 days

2008 73.74 days

2009 66.36 days

2010 64.95 days

Interpretation. If company has less ACP A CP it is more beneficial for company because they can invest more easily and according to this t his 2007 is favourable for company ptcl.


ACCOUNT RECEVABLE TURNOVER An accounting measure used to quantify a firm ¶s effectiveness eff ectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets. By maintaining accounts receivable, firms are indirectly extending interest -free loans to

their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient. A low ratio implies the company should re -assess its it s credit policies in order to ensure the timely collection of imparted credit that is not earning interest for the firm. Formula:

2006 4.30 times

2007 5.72 times

2008 4.96 times

2009 5.50 times

2010 5.62 times

Interpretation.

2007 is favourable for the company because it has more acount receivable turnover.

Leverage or solvency ratios Solvency is the company¶s ability to meet its long term obligations as they become due. An analysis of solvency concentrates on the long term financial and operating structure of business. The degree of long term term debt in capital capital structure is also consider ed. Solvency is dependent upon profitability since in the long run as a firm will not be able to meet its debt unless it is profitable


.

Debt ratio: It Indicates what proportion of the company's assets are being financed through debt. It can be calculated as

DE B T TO ASSET RATIO = DEBTS / ASSETS

2006 30%

2007 27%

2008 30%

2009 35%

2010 34%

Interpretation: This ratio highlights the relative importance of debts financing to the firm by showing the %age of the firm¶s assets that are supported by debt financing. The de bt ratio has decreased from 0.35 to 0.27 which means that company is not depending more on debts.

Profitability Ratios A class of financial metrics that is used to determine a company's ability to pay off its short-terms short-ter ms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. Profitability Ratios indicate the earnings potential of a company


Return on total assets: An indicator indicator of how profitable profitable a company company is relative relative to its total assets. ROA gives an idea idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its its total assets, ROA R OA is displayed as a percentage. Sometimes this is referred to as "return on investment". ROA tells you what earnings were generated from invested capital (assets). ROA for public companies can vary substantially and will be highly dependent on the industry. This is why when using ROA as a comparative measure, it is best to compare it against a company's previous ROA numbers or the ROA of a similar company. The assets of the company are comprised of both debt and equity. Both of these types of financing are used to fund the operations of the company. The ROA figure gives investors an idea of how effectively the company is converting the money it has to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. The formula for r eturn eturn on asset ass ets s is:

Return On Assests = Net Income / Assests X 100

2006 14%

2007 10.2%

2008 (2.5%)

2009 6%

2010 6.2%

Interpretation: This ratio shows that company is earning 14 percent on each rupee of asset investment in 2006. This has increased increased (2.5)% (2.5) % to 6% in 2009.


Operating profit ratio: 2006 9.74%

2007 29%

2008 25%

2009 18%

2010 39.7%

Interpretation: The operating profit indicates indicates the percentage of each each rupees remaining after all costs and expenses other than interest, taxes. It has decreased in 2006.

Net profit margin:

2006 30%

2007 24%

2008 (4.2)%

2009 15%

2010 16%

Interpretation: The net profit margin measures the percentage of each revenue remaining after all costs and expenses, including interest, taxes and dividends. The higher the firms net profit margin, the better. It has decreased from 30% to (4.2)%.


Market ratios

Earning per share It is used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. Convertible securities refer to all outstanding convertible preferred shares, convertible debentures, stock options (primarily employee based) and warrants. Unless the company has no additional potential shares outstanding (a relatively rare circumstance) the diluted EPS will always be lower than the simple EPS. EPS= (Net profit after tax í Preference dividend) / No. of equity shares (common shares) 2006

2007

2008

2009

2010

04 Rs.

03 Rs.

(.55) Rs.

1.79 Rs.

1.82 Rs.

Intrerpretation More EPS in beneficial for the company. And 2006 is more beneficial and 2008 is wrost year of the company.


Swot Analysis


SWOT ANALYSIS:

An overall evaluation of the company¶s strengths, weaknesses, opportunities and threats. Strengths and weaknesses are related to internal environment and opportunities and threats are related to external environment.

SWOT Analysis of PTCL:

Strengths:

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Largest operational network and infrastructure with in ICT. An integrated monopoly. Market leadership Ptcl u fone is market challenger in GSM. Competitors still depend on ptcl network either directly or indirectly. Experienced telecom resources


Weaknesses:

Internal organizational issues. Monopolistic culture has further added to complexities. Ptcl v, the fixed wireless service is poor. over employment and low productivity. Slow decision making. Not been able to nurture its growth around customerservices oriented strategy.

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Opportunities:

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Low teledensity of Pakistan. Has fast infrastructure. Scope for cost effective operations.


Threats:

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Increased in long distance countries. Exposure to market competition. Migration to cellular network. Ability to attract and retain quality.


Recommendations There is always a room for the ³change´, so while we studied the PTCL we concluded, on the basis of our theoretical studies. Following are the recommendations for improvement of PTCL: 1. One department that seriously needs attention is PTCL's PTCL' s customer care. There have been numerous occasions and news regarding the poor performance and troubleshooting when an instance arises. Nevertheless, Pakistan ISP industry is up for some interesting turns. 2. Technical department and they always always suggest sugges t changing proffered and alternate DNS server addresses, and when they know that, by changing DNS server addresses the problem is still 3. Orientations should be better. 4. Only issue with PTCL is their customer services, calling 1236 is useless, all they say is we have got your complain this is your complain number and your issue will resolve in 24 hours. 5. DSL Internet is very good service but in Quetta the ptcl complain service is very bad. they do not think of their client. we had SUGGEST them to make it good. good . 6. There is also need for training of newly hired incumbent on priority basis.



Conclusion: PTCL needs innovative service offerings ² currently it doesn¶t even offer bundles or a single bill. Overall PTCL still behaves as a monopoly « it has to change its attitude. At a minimum, avoiding billing billing errors and providing compete nt and courteous service to its Customers is essential if PTCL wants to show that it is transforming itself to a competitive company which cares for its customers. It is said that the best assets of a company go home to their family in the evening. Can the culture of PTCL be changed to a performance and service based organization? According to the latest director¶s report from PTCL the ³organization is being revamped´. Only time can tell the impact.


References : www.ptcl.com www.scribd.com

Ptcl Report.

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