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INTERNSHIP REPORT ON PTCL

PTCL (PAKISTAN TELECOMMUNICATION COMPANY LIMITED)

Presented to:

DEPARTMENT OF PUBLIC ADMINISTRATION

UNIVERSITY OF SINDH, JAMSHORO

Presented By:

JAWED LUND S/O ALI AKBAR

B.S(PA)-IV, EVENING

FINANCE

Roll # 2K12/PAE/23

Email: jawedahmed371@yahoo.com

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REPORT

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CONTENTS OF REPORT

PART-ONE

CHAPTER # 01 ------------------------------------------------------------------------------- 05

1.1 ACKNOWLEDGEMENT------------------------------------------------------- 05

1.2. EXECUTIVE SUMMARY------------------------------------------------------ 05

1.3. INTRODUCTION OF PTCL--------------------------------------------------- O6

1.4. HISTORY------------------------------------------------------------------------- 07

PART- TWO

INTERNSHIP REPORT

CHAPTER # 02 ------------------------------------------------------------------------------- 08

2.1. PARKING------------------------------------------------------------------------ 08

2.1.1. Holding Invoice Documents ---------------------------------------------- 09

2.2. Parking Invoice Documents ------------------------------------------------ 09

2.2.1. Use document parking ----------------------------------------------------- 09

2.3. Saving Invoice Documents as Complete --------------------------------- 10

2.3.1. Use Save as complete ------------------------------------------------------- 10

2.4. Demand Draft of Park -------------------------------------------------------- 10

CHAPTER # 03 --------------------------------------------------------------------------------- 13

3.1. POSTING -------------------------------------------------------------------------- 14

3.2. Account type ------------------------------------------------------------------- 15

3.3. Posting keys in the standard system ------------------------------------- 16

3.4. PAYMENT ------------------------------------------------------------------ 16

CHAPTER # 04 ------------------------------------------------------------------------- 16

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4.1. Adjustment of Journal Voucher ------------------------------------- 16

4.2. Punching of Document ------------------------------------------------ 17

4.3. Note Sheet ----------------------------------------------------------------- 17

4.4. Reporting ----------------------------------------------------------------- 18

4.5. In Revenue ----------------------------------------------------------------------- 18

4.6. Bill Installment ----------------------------------------------------------------- 19

4.7. Bill Correction ------------------------------------------------------------------ 19

PART-THREE

CHAPTER # 05 -------------------------------------------------------------------------------- 20

5.1. Organizational Structure of PTCL ---------------------------------------- 20

5.2. Structure of PTCL -------------------------------------------------------------- 21

5.3. PTCL Head Office Chart ----------------------------------------------- 21

5.4. Chart of Regional Office ----------------------------------------------------- 23

5.5. Department Organization Chart ----------------------------- 24

5.6. Managerial Structure of Department ----------------------- 25

5.7. Privatation of PTCL ---------------------------------------------- 25

CHAPTER # 6 --------------------------------------------------------------------------- 26

6.1. Finance -------------------------------------------------------------------- 26

6.2. Accounting ----------------------------------------------------------------------- 26

6.3. Revenue --------------------------------------------------------------------------- 26

6.4. Accounting System of PTCL -------------------------------------------------- 27

6.4.1. Revenue from Billing System --------------------------------------------- 27

6.4.2. Revenue from Others ------------------------------------------------------- 28

CHAPTER # 7 ---------------------------------------------------------------------------------- 28

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7.1. SWOT Analysis of PTCL ------------------------------------------------------------- 28

7.2. Strength -------------------------------------------------------------------------- 28

7.3. Weakness ------------------------------------------------------------------------ 29

7.4. Opportunity --------------------------------------------------------------------- 30

7.5. Threat ----------------------------------------------------------------------------- 30

CHAPTER # 8 ---------------------------------------------------------------------------------- 31

8.1. Objectives ------------------------------------------------------------------------ 31

8.2. The Following Long-term Objectives ------------------------------------- 31

8.3. Vision ------------------------------------------------------------------------------ 32

8.4. Mission ---------------------------------------------------------------------------- 33

8.5. Recommendation ---------------------------------------------------------------33

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PART – 01 CHAPTER # 01

INTRODUCTION

1.1 ACKNOWLEDGEMENT

This report of getting experience complete with the helps of some

respectable employess of PTCL of finance department and also revenue

department. In finance department the names of employees as under, Mr.

MASOOD SHAHANI, Mr. MIR MUHAMMAD BALOCH, Mr. NOUMAN, Mr.

WAHEED, Mr. AMEEN. And in revenue, Mr. Imtiaz Ahmed Ansari, Mr. M.

Hassan, Mr. Shoaib, Mr. Walee.

This report is a necessary of Public Administration, B.S(PA) and is the

Department of faculty of social science of my learning experience with PTCL.

The internship of finance and revenue in PTCL, purpose is that to increase

knowledge and to get experience. After theoretically then practical of theory

in PTCL and gain to experience, my internship on finance and learn about

software of finance which used in PTCL regional branch of Hyderabad Fatima

janah road Hyderabad. I have been learned as a practical work in institute,

this internship specially for working as financial practical work in the

institute.

1.2. EXECUTIVE SUMMARYWith employee strength of 30,000 and 5.7 million customers, PTCL is

the largest telecommunications provider in Pakistan. PTCL also continues

to be the largest CDMA operator in the country with 0.8 million V-fone

customers. The company maintains a leading position in Pakistan as an

infrastructure provider to other telecom operators and corporate

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customers of the country. It has the potential to be an instrumental agent

in Pakistan’s economic growth. PTCL has laid an Optical Fiber Access

Network in the major metropolitan centers of Pakistan and local services

have started to be modernized and upgraded from copper to an optical

network. This report is being started with the brief and complete

introduction of organization, its historical background, its services and its

products offerings. In this report organization structure is discussed as per

the requirement of internship. What is the hierarchy in the organization as

well as working of various departments are concisely discussed.

The most important thing the BUSINESS STRAGTEGIES is discussed

in such a way that it’s not difficult to understand it. Internal and External

analysis has the vital importance, which in this report is also done. More

over the Financial Analysis is also done which is depicting the financial

position of the org in the market place. Whereas SWOT analysis is done

which clearly saws what are the strengths, weaknesses, opportunities and

threats in the organization. Finally some suggestions and

recommendations are given to org in this report. Limitation although very

few but can’t be negligible are discussed. Thus this report completely

depicts the true picture of PTCL in a meaningful way.

1.3. IntroductionPakistan Telecommunication Company Limited (PTCL) is the leading

telecommunication authority in Pakistan. The corporation provides telephonic and

Internet services nationwide and is the backbone for the country's

telecommunication infrastructure despite the arrival of a dozen other

telecommunication corporations, including Telenor Corps and China Mobile Ltd.

The corporation manages and operates around 2000 telephone exchanges across

the country, providing the largest fixed-line network. Data and backbone services

such as GSM, CDMA, broadband Internet.

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The details of the share holding in the company is till now is as given

from 100% shares of the company 62% is owned by the government while

26% was sold to Etisalat Telecommunications under the privatization

program run by Shaukat Aziz in 2006 the remaining 12% are sold to

General Public  in the same year.

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1.4 HISTORY

Founded in 14 August 1947, In 1947 the beginning there was no

concept of PTCL in Pakistan rather a department “Posts and Telegraph

Department” exists which is used for communication. In 1962 a department

was established “Pakistan Telephone and Telegraph department” replacing the

first one in those days the service was provided by the organization as a state

owned entity later on in 1991 the government took the decision to privatize the

PTCL in 1994 govt. work on it and in 1996 shares are given to people holding

vouchers. In 2005 government decides to fully privatize the PTCL and sold the

shares to Etisalat which led to country wide protests and strikes by the PTCL

workers.

The Government in 1991, announced its plans to privatize PTCL, 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-1996.

PTCL launched its mobile and data services subsidiaries 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.

PART TWO

Internship report CHAPTER # 02

PARKING

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The internship report is conduct on the learning period of which I have

done in PTCL, it means that investment of time in PTCL and working days of

PTCL. I have been to get the experience from this opportunity of internship in

Hyderabad. The internship report based on which I have done my work in

PTCL as a internee which contain of two departments, one is that Finance

and Revenue.

1.2.1. PARKING

Parking is the process of recording the documents in the SAP software of PTCL. To maintain record the data for the auditing purpose and for company record.

2.1.1. Holding Invoice

Documents:

If you are interrupted while entering or parking an invoice, you can

hold the data you have already entered, such as the list field selections,

header data, and item data. The system creates an invoice document but does

not make any checks, updates, or postings. When you continue processing the

held document later, the system proposes the data already entered.

2.2. Parking Invoice Documents

You create an invoice document in document parking. Choose the disk

icon Save parked document to do this. Before saving the data, the system

performs consistency checks .Subsequently, you can still change, delete, or

post parked documents, or save them as complete.

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2.2.1. Use document parking if:

1. Information required for posting the invoice document is missing in

the invoice document and you do not want to have to enter again the data

already entered

2. The balance is not zero

3. The following updates are to take place:

1. Log of document changes

2. Informative purchase order history

3. Data for advance tax returns

4. Index for checking for duplicate invoices

5. Vendor open items

6. Vendor open items for parked documents

2.3. Saving Invoice Documents as Complete

You create an invoice document in document parking. Choose Save as

complete to do this. Before saving the data, the system performs consistency

checks. In the event of errors, the data is not saved, but is presented for

correction instead. Subsequently, you can still change, delete, or post

Documents complete for posting.

2.3.1. Use Save as complete if:

1. No more changes are to be made to the invoice document

2. The balance is zero

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3. The invoice document is to be parked for posting but not posted yet

cheers.

LPS (late payment sub-charge), it is the part of money where PTCL to

pay at the time of late, after due date to pay the amount to vender or bills or

other.

2.4. DEMAND DRAFT OF PARKING

PTCL issue Demand Draft (DD) from NBP on debit account (loan) of all

branches of division. Bank reconciliation report. PTCL issue DD from National

Bank Pakistan (NBP) on debt account (loan) of all branches of division of

Hyderabad. Means PTCL to give document of as a letter to provide the DD

then PTCL to make check for the making payment on draft then forward to

the vender or the bills.

Folio, it is kept by the PTCL for the purpose of auditing. It is leaf for

office copy on the tap is check, record of document number, invoice reference

date, value, with tax, net.

Parking on system application product (SAP) by the semen’s company,

here many models but PTCL used the fico model. Fico model especially used

for the finance of PTCL.

There are three users of PTCL first one is that the parking which is do

for the giving the entry and recording the documents, second one is posting

which for the verifying the documents for the payment and third is the

payment which means the to pay the amount to the vender or bills, and theirs

idea totally different from each other.

Internship report

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Regional General Manager (RGM), and widrow means the PTCL to pay

the amount for funding the benevolent fund. Benevolent means a employee

who has been died and pension to pay his wife. “F-53” is the code of parking

and posting in the SAP software after open ID or user account in SAP

software. Then options as under in SAP general leadger (GL) and code as a

example is “4830821”, post out going payments, process open items and

payment document code is “26”. If document make be done in the code of 25,

then is known as document complete in parking document. For credit the

code is “50”, and for revers is “48” in PTCL Hyderabad.

/nfbz5 this code use for print for payment document and /n_ for back

to the menu and company code “1100”, “/fbvo” for find payment, “/fahn” for

know about check, “/faglb03” for tell the balance of vender and “/fbl1n” for

now punch paid payment to the vender.

M.O maintenance order and note sheet where employee want to

advance amount from the company (PTCL), for the purpose of employee to do

work of his job. Advance payment means temporary payment to the

employees, and MO done in SAP software as known as adjusting and the code

for adjusting is /Fv50 and tax code is “yo” which always in debit side and cost

center code (40870) always in credit side and cost centers are different

because every employee working on different cost centers. Profit center

(1129) is stand same for the regional company and employees have different

codes which is known as person code (example 10025282), B.M.C Business

manager center and L&W for stand as line and wire.

Jv for temporary advance and for the funding to benevolent fund, vender

to be clear from Lahore head office and named as senior manager HR

coordinator, hurship means heritage/ hierarchy of the family which

confined the venders and benevolent documents from the court and then

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company head means company authority to clear for the funding. But in past

there was a authority runs as named DIRECTOR COMMERCIAL which was

working all over in PTCL and his work was same as clearing the funds of

venders.

Reference number increase in the blank of reference and parking number

as example p-5326, then vender code (example 3505842). Click on tax to

select the division then switching to senior engineer (S.E) then go on payment

and to fill house bank box and house bank code is “nb040”.

CHAPTER # 03

POSTING

Recording of the transaction for the G/L account, for making it finalize.

Before posting the document of G/L accounts to complete the two steps which

are as allocation and parking. Two-character numerical key that controls the

entry of line items. The posting key determines.

Regarding to the document posting to means to clearance the

document and allow the fund. After clearing the document, the assistant

manager of finance, again do parking process and then to give assigned for

the billing and to forward the document for payment. Assistant manager

(A.M) send the email with the documents of funds to post and then A.M to re-

parking the documents in PTCL. Example Doc# 25…46735, then doc posted 13

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and green color displayed in screen, if red color show that means error in

posting doc. Urgent code is Z000, and for more than 30 days or one month the

code is Z030.

The company needs to pay its invoices in order to function properly. It

also needs to record vendor invoices and payments in the accounting books

and registers. SAP is a help here. Accounts Payable is an important part of

SAP Finance. Let’s look at the process of posting the invoice into SAP Finance.

Would they be able to park and post the same transaction are is

restricted to only posting of transactions which they have not parked. Go

to t-code FBV0 and select your document number. Click the List button if

you need to search for your doc.

Here the option

for checking list of

documents and select

the posting document

and open the document

and do posting by

individual documents

or to select some

documents then post in

group. And before the

post document to fulfil

the option such like as

company code, document

code or number, then

year.

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Then press enter to open the Edit screen. Here, you can make

additions/adjustments to the parked document.

3.1. Account type

Debit/credit posting

Layout of entry screens

When you enter a posting, enter a posting key for each item. This key determines how the item is posted. Posting keys are defined at client level and therefore apply to all company codes. The posting key determines:

The data you can enter in the line item How data you post is processed How the system updates the data you enter

Posting keys are differentiated by customer, vendor and G/L accounts. Apart from the General Ledger Accounting (FI-GL) and Accounts Receivable and Payable (FI-AR/AP) components, there are also posting keys for asset and material accounts.

SAP delivers predefined posting keys with the standard system. The following table lists some of the posting keys in the standard system.

3.2. Posting keys in the standard system

Posting Key Description40 G/L account debit posting

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50 G/L account credit posting01 Customer invoice11 Customer credit memo21 Vendor credit memo25 Vendor payment31 Vendor invoice

The posting key specifies which account types you can post to. A posting

key can only be entered for an account type which is permitted for that

document type.

As well as the predefined posting keys in the standard system, you can

also define your own keys in Customizing. To do this, proceed as follows in

Customizing.

3.3. PAYMENT

It is the last process of SAP software which makes the payment and

makes check for save the for late penalty bills. After checking document of

posted files by the financial manager of PTCL then he to allow the payment to

the venders, and other documents.

After the Posting, All bills go for the payment either in manually or

automatic. I learnt and practiced on payment in SAP which is too easy for the

payment.

CHAPTER # 04

ADJUSTMENT

4.1. ADJUSTMENT OF JOURNAL VOUCHER

Adjustment is the method of adjusting of payments which company paid in advance to the contractor and to the employees. After

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payment to pay in advance after period complete of advance then need to adjust the balance.

Fv50 is the code of adjusting in SAP of PTCL, line and wire (LW). Open the SAP to fill the code and then fill process of adjusting, start from the basic data then vender code, invoice date posting date, tax amount, text and then company code (1100), then go farword to payment give the code of house bank and in last on with-holding, after completation of adjusting then click on simulate button for the saving adjustment document.

Invoice date means which date document have to increase in the company process. For automatic payment transaction parameter code is /nf110, in single document code is 26 and for menual document is 44. In adjusting profit center code only in credit side, debit in tax code, cost center only in debit, check register code is /nfchn.

4.2. PUNCHING OF A DOCUMENT

Punching means saving documents in excess software, if no network working in company then financial managers and in finance department manager do their work on excess software for temporary period when SAP start working then increase documents in SAP from the excess.

Punching the bills of PTCL through different regions and to pay the amount of bill to the different organization, but in case of electric bills which connection get from the electric company that’s bills to pay to the electric company for example main branch of Hyderabad to pay the bills to HESCO.

FPA, Fuel Payment Adjustment, for recording the bills to open the excess and set recent date of bill and then click on add new bill for setting the bill and recording. Amount posted code is 26, document clearing code is 11, vender start code bf-350, m-03 clearing, document adjustment code is 34, 48 is revenue cod.

4.3. NOTE SHEET

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It is the process of making note sheet of document in the way of data, and note sheet link from the crystal software. It makes the purposes of auditing when company give assignment to the auditor and employees who working internally the organization after complete all the process then they make note sheets.

In wapda the profit center is 1808, if income tax on document then we have to three rows, vg code of GST, pay term code is z000 and this code is only in wapda bills, y0 is the code of yes working on the pay tax if no tax then write vg code. If you have target of amount then tick on the tree off/on, and then click on the calculate text for automatically amount calculate. G/L code change only in PTCL office of regions bills otherwise same code on all the bills.

CSR Customer Service Representative means line-man, 1,000 instalment of bikes which line man use and bikes provide by the company to line man and also 30 liters of petrol for a month. Bills of petrol received by the HR department of PTCL and to clear and check in completely then forward to the finance department.

EPI Employee Personal Identify number or code, Assistant Manager Admin checks the bills of CSR of bike’s petrol which may to send by the pump stations or employees and verify by the Admin of region then forward to the SM for allocating budget. This budget will be required for Admin of HR, who has need and who has a authority for requesting for budget. For this purpose to fill the options of SAP software as like here serial number, vehicle number (HBE-1409), month (jan-april 2015), monthly limit liters (30), liters, fuel amount, liberal amount, total invoice, payees or vender and in last remarks.

4.4. REPORTING

After completing all the processes then need to prepare the report and /nfag1103 is the code reporting in SAP software for open the reporting process then have to write this code. G/L account code is 2441015, company code is 1100. Line staff, open item this only for posting, then click on the clear items for make clearance then all items

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and click on executive button. /nfb02 this for entry view for check print code is /fvz5.

4.5. In Revenue

In revenue department, PTCL has 4 OSS (one stop shop). The revenue

system has been going on them. It depends on computerized system. Every

OSS has one RO (revenue officer) who monitor the all activity which is done in

OSS. It has many functions like wise:

The bill correction

o Installment

o Bills correction

o Retention

o Off line

Customer Relationship Management

o Duplicate bills

o Customer details

o Check the EVO

o EVO activation

o Complain

Public Dealing

In OSS, the public dealing is the most common factor which increase the

confidence of internee and he learns that how deals with different customer and

how we can manage them.

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4.6. BILL INSTALMENT

It is the process of making portion of amount which in the shape of bills

of customers. The time of instalment of bill at that time when a customer

have need to pay the bill in the portion because amount large, customer want

a instalment of bill.

In a branch there is a officer with the position of REVENUE OFFICER,

who is the controller or the head of a branch, he has authority to make two or

three instalment of a bill and instalment only makes on the amount of erries’s

bills not included the current bill. After instalment then to plus with the

current bill.

4.7 CORRECTION OF BILL

The process of correcting the bills, at the time when bills in heavy

amount and to cut the erries of last bill. Other thing is that wrong bill issue or

difference in the digits of bill amount then correction process start.

PART-THREE

CHAPTER # 05

ORGANIZATIONAL STRUCTURE OF PTCL

5.1. STRUCTURE OF PTCL

An Organizational Structure clarify the roles of personnel of an Organization

and to determine who has to do what task, which is responsible for what, objectives

to be achieved, who is to report to whom and to remove the obstacles for

performance caused by confusion and uncertainty of job assignment as well as to

make easy decision- making and communication networks reflecting and

supporting organization objectives.

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PTCL is divided into five major zones i-e north zone Rawalpindi and

Islamabad, central zone Punjab , south zone Sindh and Baluchistan , western zone

KPK and head quarter Islamabad , the zones are further divided into regions , PTCL

has been divided into almost thirty-two Regions (Nine Development and twenty-

three Maintenance Region ).

All the company head’s offices are in Islamabad head quarters .The head of

Pakistan Telecommunication Company Limited is called “President”. Then there are

SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance), SEVP (Operations),

SEVP (Technical), and SEVP (Human Resource Management), SEVP (Marketing &

Business Development). Then there is a chain of Executive Vice-presidents (EVPs)

like EVP (Finance Central), EVP (Marketing), EVP (HR Central), EVP (Accounts),

EVP (Operation), EVP (Information Technology, Training & Research), and EVP

(Revenue). All these are appointed at Pakistan Telecommunication Company,

Headquarters at G-8/4, Islamabad. Apart from these EVP, there are also EVP

(Operation), EVP (HR) etc. who are heading the other regions of PTCL in

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5.2. PTCL Head Office Organizational Chart

major cities country wide. Then there are Chief Engineers and General

Managers at H/Qs who report to their relevant EVP. Then there are Senior

Managers, Deputy Directors, Assistant Directors, Account Officers, Assistant

Account Officers, Financial Analysts, Marketing Managers, Computer

Programmers, and IT Specialists etc.

5.3. CHART OF REGIONAL OFFICE

There are Regional Heads (General Managers) to head PTCL Regions,

There are numbers of Senior Managers of different departments like HR,

consumer, R&C and Finance works under the supervision of RGM. There are

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three Senior Business Managers and five senior managers are working under

RGM Hyderabad though their general managers are different.

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BM-QASIMABAD

A.M

CPE installers

Manager

S.M(MM&BB)

Internship Department

U.D.C, L.D.C, Stenos etc.

Line man, Tech: Cable etc. Tech:, Cable, Line man etc.

E.S (Switch)

Engineer Engineer

R.OAssistant Clerks

Ass: B.M

Engineer Business Manager

S.E(switch)S.E (as above)

A.D.W A.D.W

S.A.OD.A.O

S.E Cord S.M(HR) S.M(D&Sp Project) S.M(Switch) S.M(Ops) S.M(Fin)

G.M (A/N(D&M))

E.S (Bus)

T.O, Tech:, Wire man etc

E.S develop

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As a human resource internee we will discuss HR department

particularly, SM –HRBP is the one who is looking After all the management

affairs of Hyderabad region SM – HRBP reports to General Manager human

resource Karachi, manager HR & his staff are responsible to take care of

Personnel affairs at Regional Level and reports to SM-HRBP, there are around

3 Assistant managers that works under manager supervision i-e AM –HRBP ,

AM- ADMIN, AM-PAYROLL. Then the non-gazette 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, Drivers, Exchange Cleaners, Naib Qasids and Peons etc. All the staff

is recruited by the HR Department headed by SEVP HR. The HR experts are

responsible for hiring & to further streamline its recruitment process.

5.4. Department Organizational Structure

24

Internship Department

A.M

CPE installers

Manager

S.M(finance) S.M(HR)

S.M (D & Sp Project)

S.M(Switch)

S.M(reven)

G.M (Functionality & Administration)

EVP

SEVP

President

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Note: so in the above structure I have scaled from SM, till CPE installers. I did my internship in DSL department so I am mentioned the names of only concerned designations and the department structure is highlighted in the chart above.

Senior Manager(SM) Esa Khan (DIK)Manager (MM&BB) Yaseen Khan1

Assistant Manager(AM) Tariq Ayaz CPE Installers Fahad Burhan, Irfan khan, Dawar

5.5. Managerial Structure of the Department

In

Hyderabad there is no GM so in the above structure I have scaled

from SM, till CPE installers and the SM report to two GMs i.e.

Functional and Administrative. I did my internship in finance

department so I am mentioned the names and designations o

employees of that department only, and the department structure is

highlighted in the chart above.1

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Senior Manager(SM) Abdul Rauf OuthoManager (finance) Masood ShahaniAssistant Manager(AM) Mir Muhammad BalochCPE Installers Nauman, Ameen, Waheed

5.6. PRIVATATION OF PTCL

PTCL was sold to Etisalat at a loss of $394 million with the share

price reduced from the original bid of $1.96 per share to $1.66,

according to a report. The original bid offered in June 2005 by Etisalat

priced PTCL at $ 2.599 billion while the revised bid approved by the

cabinet in March2006 valued the company at $2.205 billion. However,

the government denied giving any concessions to Etisalat. Officials

add the price of 26 percent PTCL shares remained the same i.e.

$2.6 billion, and then any lowering of bid price in the revised agreement

approved by the cabinet in March. The official documents state that the

accumulated bidding price in the revised bid came down to $2.205 billion

against the original Etisalat bid of $2.599 billion, said a report in the Gulf

Today.

The PTCL privatization agreement with Etisalat allegedly inflicted a

further loss of billions of rupees to the national exchequer besides

unprecedented concessions offered in the long term, indirect conflict with

Article 30 of the Public Procurement Rules 2004, it said. By far, the PTCL has

been the highest profit earning state-owned company with real-estate assets

worth billions of rupees across the country including commercial plazas,

residential colonies and exchanges. According to the government documents,

the Share Purchase Agreement (SPA) of the PTCL with Etisalat lapsed in

September 2005 after the non-payment of the dues by the winner bidders.

After further negotiations with the Etisalat management, the government

agreed to offer additional concessions and modifications to the transaction

structure.

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CHAPTER # 06

FINANCE & ACCOUNTING SYSTEM OF PTCL

The PTCL FINANCE & ACCOUNTING system is actually divided into three

wings.

1- FINANCE, 2- ACCOUNTS, 3- REVENUE FINANCE

6.1. FINANCE

The SEVP (FINANCE) is concerned with the makeup of the all type of

financial decisions especially in the context of acquisition, financing and

management of all assets with some goal in mind. The EVP (Finance) with

the General Manager (Finance) extend their expertise in the decision making

process.

6.2. ACCOUNTS

Here the SEVP (Finance) is once again concerned by heading the EVP

(ACCOUNTS) and General Manager (Accounts) to deal with all Accounts Decision.

In PTCL the Finance and Accounting are scope related but the difference between

finance and Accounting is the method of Funds Recognition and the decision

making. In the Accounting the Director Accounts in the PTCL Regions assist the

higher management.

6.3. REVENUE

Here the SEVP (Finance) is once again concerned by heading the EVP

(Revenue) and General Manager (Revenue) to deal with all Revenue matters.

One Director Revenue within the Region

asist to implement and control the inflow of Revenue and Reconcile it with

the PTCL Headquarters Islamabad. The PTCL is actually the Revenue

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Generation organization. PTCL Collect the Revenue from the following

modes.1) Revenue from System Billing of Land Line Numbers. a) Through

Line Rent of Land Line Numbers. b) Through National wide dialing from

LLN’s (Land Line Numbers)c) International dialing from LLN’s d) Providing

Value Added services to customers. Like UAN (Universal Access Numbers),

PABX (Private Auto Branch Exchanges),VPN( Virtual Private Network)

Bandwidth of ISP’S (Internet service providers)e) PTCL has its three

subsidiaries PAKNET (leading ISP in the country),UFONE (unique cellular

phone company in Pakistan), TF (Telecom Foundation) the leading

foundation for the welfare of employees of Telecom Sector.

 6.4. ACCOUNTING SYTEM OF PTCL

In PTCL the rules contained in the special volume of the PTCL under

which the SEVP (FINANCE) is responsible for creating the procedure of

Accounting matters.

CAPITAL RECEIPTS SIDE

6.4.1. REVENUE FROM BILLING SYSTEM

a. Revenue from Usual customer.

 b. Revenue from DXX System.

c. Revenue from DSL System.

d. Revenue from PABX/PBX System

e. Revenue from Card Phone Operators.

f. Revenue from IPOs Internet service providers

g. Revenue from Mobile Phone Operators.

h. Co-location charges from various companies

6.4.2. REVENUE FROM OTHER 

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a. Revenue from Overseas calls (Incoming)

 b. Revenue from Premium PRS (0900) calls

c. Income from Dismantle Exchanges

d. Revenue from MDF used by other companies

CHAPTER # 07 SWOT ANALYSIS

7.1. SWOT ANALYSIS OF PTCL

Here I am giving SWOT analysis of PTCL. I tried to use my keen

observation in order to find the strengths, weaknesses, opportunities

and threats. As it is very difficult for an internee to discuss with the

employees of any organization about its weaknesses, moreover they are

also not so much open in telling their strengths and opportunities.

Where there is a company in operation it has to work in two kinds of

environment i.e. The external environment and The internal

environment of the company.

For a company to avail maximum and avoid maximum, it has to know

what it has to avail and what it has to avoid. The external environment has

scanned by the management for any arising opportunities or any critical

threats. The resources of a company constitute its strengths and weaknesses.

7.2. STRENGTH

PTCL have largest infrastructure through out the country or we can say

that PTCL own the basic infrastructure of telecom in country. PTCL is the

cheapest broadband provider through the world. As the past serving and

current Significant Market Player (SMP), PTCL, no doubt, has got the largest

operational network and infrastructure within ICT (Information &

Communication Technologies) section. PTCL don't lack in numbers and 29

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potential, if we talk about human resources or in other word PTCL have good

HR. Data center is another strength of PTCL. PTCL financial and strategic

position become more stronger when Etisalat has joined them as investment

arm as compare to other competing firms.

PTCL is enjoying monopoly in fixed line telephone or landline.

PTCL (Ufone) is market challenger in GSM segment. Overall they have the one

of the largest consumer power on average  in the whole Pakistan telecom or

cellular companies.

PTCL having over 2 million lines, PTCL is the largest WLL provider and 1134

base stations cover 720 cities still increasing the capacity. PTCL market share

more than 94% share in fixed line or land line segment.

7.3. WEAKNESS

PTCL customer service is still not good and this is one of their main

weaknesses and due to this there is very less number of brand loyal customer.

The monopolistic culture of PTCL won't let then to improve their service.

PTCL have over employment and low productivity as well. PTCL HR

department is not up to set standards on the bases of appraisal system of

their employees. PTCL waste huge amount of resources. Their staff won't get

any benefit for their higher qualification and since 12 year their promotions

are stopped.

Action of resources e.g they have complaint management system but still

customer complaints are not rectified on time.

PTCL corporate culture is similar to the government offices.

PTCL is not properly marketing their new services and product.

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7.4 .OPPORTUNITY

PTCL have huge opportunity to increase their profit ability by improving customer services.

Can improve the broadband market share by tracing their technical staff and replacing copper wire with Optical fibers.

PTCL can save a lot of resources if they bring so betterment in their planning process.

Raise their market share by improving their marketing tactic.

PTCL must grab bright opportunities like WI-MAX.

PTCL must have to come up with video call.

Must have to grab the opportunity of 3G technology.

7.5. THREATS

PTCL is facing huge threat of migration from landline to mobile phone.

Involvement of rivals in social activities can badly effect PTCL Image and market share.

Brilliant customer service of rivals is a huge threat for PTCL.

Increasing rate of cyber-crime is also threat for PTCL high speed internet devices like EVO, EVO nitro.

Continuously improving quality of Naya tell is also threat for PTCL.

CHAPTER # 08

PTCL CORE OBJECTIVES31

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 8.1. OBJECTIVESThe primary objective of Pakistan Telecommunication Company

Limited is to provide telecommunication services to the people in the

country or in short to satisfy the telecommunication needs of its customers.

Responding to the rapid economic and technological growth, the company

is determined to meet the challenge of expanding needs of telephone and

data communication such as public data network, integrated services

digital network and Internet services. The major focus of attention is to

improve and expand the services, minimize the faults and provide

communication facilities to rural areas. It is also one of the major

objectives of management that the company should not improve its

performance but also encourage the private sector to enter the Tele

business.

The company has entered the domain of free market economy, which

necessitates the liberal management policies and private sector. The

following basic policy steps have been taken to meet the objectives laid in

PTCL Act to expand and operate telecommunication services in the

country. The main objective of any company is to earn the profit and

minimize expenses by winning goodwill in the market.

8.2. The following are the long-term objectives of the

organization:

Provision of Telecom services all over the country.

Plan, establish and maintain telecommunication

Acquire, promote and manage research and development, transfer of

technology and software development including manufacturing of

telecommunication equipment and plant

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Enhance efficiency, improve quality and expand the system to meet

customer satisfaction and provide service on demand.

Create congenial climate for binding of human skill and horizon of

employees through training and education.

Convert its cash basis single entry accounting system to accrual basis

double entry system meeting the commercial international

accounting standards.

To introduce computerized directory assistance and complaint

services reform billing and a revenue collection system.

Strengthen relation with foreign international administration,

entities, services providers, international and regional telecom

organizations for better international communication and technical

cooperation in telecommunication business.

Expand customer awareness of all value-added services of PTCL.

To improve the efficiency of Customer Service Centers by deputing

qualified persons who are well aware of public relation techniques.

8.3. vision

To be the leading ICT service provider in the region by achieving

customers' 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.

8.4. Mission

To achieve our vision by having:

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An organizational environment that fosters professionalism,

motivation and quality

An environment that is cost effective and quality conscious

Services that are based on the most optimum technology

"Quality" and "Time" conscious customer service

Sustained growth in earnings and profitability

Core Values

8.5. RECOMMENDATION

According to my internship time period that I have been some good

features of company and good persons are working under the

following some advises as:

The company should have to care about their

employees.

The need to make trust with the employees and give

them opportunities of growth within the

organization or externally.

Company have to be makes motivational

environment in the organization for the receiving a

better work and employees and customers who get

interest on the company.

To be clean buildings and to give advance facilities to

the employees during work in office building, like as

air condition system and new electronic machines.

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It is the most important that customer care is the first

priority of company that focus on customer care, and

to invent new machines in customer care centers.

I think also company are responsible that to achieve

goals and for this then company have to be fulfil

needs and wants of employees, because without

employees company nothing.

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