INTERNSHIP REPORT
ON
PTCL (PAKISTAN TELECOMMUNICATION COMPANY LIMITED)
Presented by:
Mr. Keran raj
Student of BBA (Hons)
Session 2013-17
Submitted to:
Mr. Luqman wadan
Lecturer at Department of Management Sciences
Abdul Wali Khan University Mardan
Buner Campus
Department of Management Sciences
Abdul Wali Khan University Mardan (Buner Campus)
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
Page 1
EXECUTIVE SUMMARY
Pakistan Telecommunication Company limited is a well-reputed organization and is a leading
organization of Pakistan. Since its establishment, it has expended its network to great extent.
Strong and efficient telecom sector is the basic requirements of any country. One of these
companies is PTCL. No one can deny the role of PTCL to survive in the current scenario of the
world. Globalization, industrialization and technological advancement are very necessary to
speed up in fast lane. For Flexible economy there must be a Flexible Telecom organization
working in flexible and independent way.
The report aims at appraising the working of PTCL, its functions and operation and also
attempts to assess its performance. Certain recommendations are presented for the potential
areas of improvement.
(Keran raj)
BBA (Hons) Finance
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
Page 2
APROVAL SHEET
Internship report
On
PTCL(Pakistan telecommunication company limited)
This report is submitted to the Department of Management Sciences Abdul Wali
Khan University Mardan Buner Campus is partial fulfilment of the requirement for
the Degree of Bachelor of Business Administration (Finance)
Session 2013-2017
Campus Coordinator
Internship Supervisor
External Supervisor
Department Chairman
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
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DEDICATION:
I dedicate all my efforts and struggles of the educational life to my dear
parents without them I am meaningless. Also I devote the work of this
internship report to respectable and honorable teachers who taught and
supported me in developing my personality as a competent professional.
Special Thanks to:
 Syed Farman Ali (SM finance )
 Mr. Jahangir khan (AM IT)
 Mr. Nadeem khan ( pre auditor)
(Keran Raj)
BBA (Hons) finance
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
Page 4
ACKNOWLEDGMENT
I am thankful to almighty ALLAH, the king of kings and the lord of
lords, who gave me the strength to complete my internship report on
PTCL (Pakistan telecommunication company limited),Peshawar.
Secondly, I am great full to my worthy and devoted teacher Director
Syed Farman Ali (SM finance) for providing me the Opportunity of
doing internship in PTCL as well as for providing me the necessary
information regarding the internship.
I would like to express my special gratitude towards my parents for
their cooperation and encouragement in completion of this report.
Thanks to PTCL finance department team for giving me such
attention and time.
My appreciation also goes to my friends who helped me in
developing my internship report.
(Keran raj)
BBA (Hons) finance
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
Page 5
PREFACE
This report is the essential part of my BBA (HONS) program of studies as per for the academic
requirements. The sole intention is to disseminate with the realistic manipulation of the
organization. This report has been written to know how big organizations like PTCL manage
their Finance and Management operations. How they structure there day to day operations, there
transactions, and what type of strategies they apply for their organization to achieve their goals.
About the project, in the first phase of the report there is the general introduction, history and
management about the company and then different terms have been explained, then the mission,
values, different services and different strategies of the organization have been explained.
It is discussed about the sap programme and its use in PTCL, and the organizational hierarchy is
explained.
In the next part, my internship work in PTCL finance department is explained; financial analysis
and SWOT analysis of the firm have been done by the help of which we identified that what are
the strong areas of the company and where it lacks so that it can improve.
The source of my information for the preparation of this report also includes the written notes,
literatures and verbal discussion with staff members and my fellows.
The information contained in this report is based on my personal observations, practicle working
and interviews with the staff during my internship period.
(Keran Raj)
BBA (Hons) Finance
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
Page 6
TABLE OF CONTENTS
S. No
Contents
Page No.
INTRODUCTION
10
1.1
Introduction to Report
10
1.2
Background of the Study
10
1.3
Purpose of the Study
10
1.4
Scope of the Study
11
1.5
Methodology
11
PTCL(Pakistan telecommunication co.ltd)
12
2.1
Introduction
12
2.2
Early history
14
2.3
Recent history
15
2.4
Current head office
17
2.5
Main offices
17
2.6
Vision and mission statement
18
2.7
Objectives of PTCL
18
2.8
Board of directors and management
19
Organizational hierarchy
22
3.1
Hierarchy of head quarter/chart
22
3.2
Departmental hierarchy/chart
23
3.3
Organizational setup
24
3.4
Products and services
25
Departmentation of PTCL
27
4.1
Human Resource Management Department
27
4.2
Finance department
28
4.3
Commercial department
28
4.4
Operational department
29
Chapter 1:
chapter 2:
Chapter 3:
Chapter 4:
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4.5
Technical department
29
4.6
IT department
29
4.7
Corporate affairs department
29
4.8
Special project department
29
My internship work
30
5.1
Structure of finance department
30
5.2
Functions of finance department
30
5.3
Mechanism of finance department
31
5.4
Bills processing
32
5.4.1
Bills receiving
32
5.4.2
Scrutiny of bills
32
5.4.3
Parking in sap
33
5.4.4
Posting in sap
33
5.4.5
Payment process in sap
33
5.4.6
Printing of cique
33
5.4.7
Sighning of ciques
34
5.4.8
Dispatches of chique
34
Financial statements analysis
35
6.1
Balance sheet
36
6.2
Income statement
38
6.3
Financial ratios
39
6.3.1
Liquidity ratios
39
6.3.2
Financial liverage ratios
39
6.3.3
Profitability ratios
40
6.3.4
Activity ratios
42
Chapter 7
SWOT analysis
43
7.1
Strengths
43
7.2
Weaknesis
43
Chapter 5
Chapter 6:
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7.3
Oppurtunities
44
7.4
threats
44
Recommendations and conclusion
45
8.1
recommendation
45
8.2
Conclusion
45
Chapter 9
List of acronyms
46
Chapter 10
References
48
Chapter 8
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Chapter 1:
1.1 INTRODUCTION OF THE STUDY
As requirement of BBA (HONS) degree, conducting Eight Weeks practical training program in a
business concern organization if any is necessary. The importance of internship is due to the fact
that it provides an opportunity that the students to apply their theoretical concept into practices.
Being a student of FINANCE I
selected the PTCL for my Internship had to Choose from the various Organizations in Pakistan.
But PTCL was the one that could provide me the best Platform to Learn about the Basic
FINANCE Practices. I have completed an Initial Eight-week Internship at The Pakistan
TelecommunicationCompanyLimited.
1.2
BACKGROUND OF THE STUDY:
PTCL is a largest telecommunications provider in Pakistan. PTCL also endures to be the largest
CDMA operator in the country with 0.8 million V-fone customers. The company maintains a
leading spot in Pakistan as infrastructure provider to other telecom operators and corporate
customers of the country. It has the potential to be an instrumental agent in Pakistan’s economic
growth. With the promulgation of Telecommunication (Re-Organization) Act 1996, the Pakistan
Telecommunication Authority was established as the Telecom Regulatory body. Following the
open licensing policy in BUY @ PKR 45.40 accordance with the instructions of Government of
Pakistan and in exercise of powers conferred by Pakistan.
1.3
PURPOSE OF STUDY:
There are two main Purposes of the Study, The First one is the study was Prepared as
Prerequisite for the Completion of The Degree Program BBA (HONS) in Abdul Wali Khan
University Mardan. Secondly, to Get The Training in Real Life Situation, Applying Management
Knowledge in Practices And Improving Personal Skills By Working With the expertise of Their
Concern Fields, And also to conduct practical observation so as to compile this report in a
Concise Manner.
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
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1.4
SCOPEOF THE STUDY:
As a Internee in Pakistan Telecommunication Company Limited (PTCL), The main focus of my
study was to gain the knowledge about the procedure of The Organizations , and knowledge
about The FINANCE Functions and FINANCE Practices. This report Identifies That How The
FINANCE Department of the PTCL Operate Their FINANCE Practices With in The
Organization. This Report Identifies That How the FINANCE Department of PTCL is
Implement the FINANCE practices in The Organization.
Such as ; Budget, Revenue, Accounts, Recovery.
1.5
Methods Of Collecting Data:
I have collected the data for this report in many ways. I used Primary data, as well as secondary
data for completing the task of report writing about my internship. Some of the methods I used
are discussed below
1.5.1 Use of Primary Data
I used primary data for completing the report by the following ways
1. Self-observations
2. Discussions with officers
3. Discussion with senior students
1.5.2 Use Of Secondary data
I also used Secondary data for completing the report writing. Some of these methods are as
follows.
1.
2.
3.
4.
PTCL brochures
PTCL website
Internship report of seniors and friends
Staff Training program guides
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
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Chapter 2
2.1
INTRODUCTION
PTCL is the sole land line service provider of Pakistan. PTCL is the giant of Pakistan
telecommunication industry and enjoying the monopoly. This part of the report contains a brief
introduction of PTCL.
PTCL is a largest telecommunications provider in Pakistan. PTCL also endures to be the largest
CDMA operator in the country with 0.8 million V-fone customers. The company maintains a
leading spot in Pakistan as infrastructure provider to other telecom operators and corporate
customers of the country. It has the potential to be an instrumental agent in Pakistan’s economic
growth .PTCL has laid an optical Fiber Access Network in the major metropolitan centers of
Pakistan and local loop services have started to be modernized and upgraded from copper to an
optical network. On the long distance and international infrastructure side, the submarine cables
is being expanded to meet the increasing demand of international traffic.
With the promulgation of Telecommunication (Re-Organization) Act 1996, the Pakistan
Telecommunication Authority was established as the Telecom Regulatory body. the basic
telephony was put under exclusivity and PTCL was given a seven years monopoly over basic
telephony which ended by December 31,2002. The years 2006-7 in the telecom sector witnessed
a phenomenal So far PTCL is the sole land line service provider of Pakistan. PTCL is the giant
of growth in the mobile phone sector in Pakistan which doubled its subscriber base to 60 million.
The Teledensity increased from 26% to 40 helping to spread to benefits of communication
technology across the country. PTCL’s mobile phone subsidiary Ufone’ subscriber base grew by
more than 87% from 7.49 million to 14 million.
The year also witnessed the entrance of major telecom companies, most notable China Telecom
and SingTel, into the market. Restructuring and re-engineering are in their final stages along with
the implementation of ERP system.
From the end customer’s Perspective, a major initiative was put in place in the shape of
Broadband Pakistan service unveiling as a first step towards providing its customer with more
value added service and convenience. The PTCL not only bringing the benefit of high speed
internet access to subscribers in major cities but will also generate new revenue streams for
future growth. The company also continued to invest in Infrastructure development and addition
of network capacity with a view to enhance services and to expand its reach across the country .
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HISTORICAL BACKGROUND
1947
Posts & Telegraph Dept. established
1962
Pakistan Telegraph & Telephone Department
1990-91
Pakistan Telecom Corporation
1995
About 5 % of PTC assets transferred to PTA, FAB & NTC
1996
PTCL Formed listed on all Stock Exchanges of Pakistan
1998
Mobile & Internet subsidiaries established
2000
Telecom Policy Finalized
2003
Telecom Deregulation Policy Announced
2005
26 % Shares by Etisalat UAE through open bidding
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
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2.2 Early growth
THE TELECOMMUNICATIONS SECTOR 1947-2017
At
independence in 1947, the Pakistan Telecommunication sector was organized as a combined
P&T Department as it was in India before Partition. In September 1959, the Minister for
Railways and Communications decided that a detailed examination be made of the working of
the Pakistan Posts and Telegraphs Department for bringing about improvement in the efficiency
of the Postal and Telegraph services. The Cabinet approved this decision and the major step
was taken in 1962 to create the Pakistan T&T Department.
Although there was some improvement, but with greater demands on the T&T for telephones
and improvements in service, it was felt that the telecommunication sector was not meeting the
needs of the economy. The World Bank also held this view. As a result and after reviews, the
Government decided to convert the T&T into an autonomous corporation that was created as
PTC by an Ordinance on 15 December 1990. The establishment of the corporation was an
immediate step in Government’s strategy,which could not be supported and financed by
Government itself. For this purpose, Government obtained the services of consortium led by
Bear Steams (USA) for study and recommendation, which result in the promulgation of the
Telecommunication Ordinance of July 1995 separating the policy, regulations and operations in
the sector. While policy was reserved for the government, the regulation of the sector was
entrusted to the Pakistan Telecommunication Authority (PTA).
A Frequency Allocation Board (FAB) was created for the management of the radio frequency
spectrum and the government’s telecommunication services National Telecommunication
Corporation (NTC) was created. The PTC was converted to the Pakistan Telecommunication
Company Limited (PTCL) on December 31, 1995.
In October 1996, the National Assembly enacted the Telecommunication Reorganization Act
replacing the Ordinances. Although not perfect, the Telecommunication Act 1996 provides a
reasonable framework for the sector structure and organization. With the support of the World
Bank Project the PTA and FAB are expected, over time, to achieve the objectives for the sector
as envisaged in the Act.3It was only after the conversion of T&T Department into a Corporation
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in December 1990 when serious efforts were made to wipe out the pending demands and to
provide telephones to applicants in reasonable time. In collaboration with the private sector
through the Build, Operate, Transfer (BOT) scheme, 359,981 lines in 1993 and 423,023 in 1994
increased the capacity of telephone exchanges.
In 2004 the capacity had exceeded 4.5 million lines, an increase of over 3.5 million since 1991.4
For long distance telephone services, capacity of circuits was increased in 1950s by
reconstruction of open-wire lines and installation of large number of 3 and 12 channel carrier
systems.
Carrier Channel mileage increased from 8500 in 1948 to 206,873 in 1962. To further increase
circuit capacity, coaxial cable systems were installed in 1960s and early 1970s. Radio Relay
Systems supplemented these in 1970s and 1980s on both main and subsidiary routes. These
systems enabled introduction of point-to-point Subscriber Trunk Dialing (STD) in 1962 and
Nation-Wide Dialing (NWD) in 1976. By 1981, telephone subscribers of 50 cities had been
provided with NWD facility. In 1990 the NWD stations had increased to 168 and NWD channels
to 10,487. In 2009 the NWD stations had increased to 26,650.5
2.3 RECENT HISTORY
Pakistan Telecommunication Corporation was established in December 1990 to take over the
functions of the Pakistan Telephone and Telegraph Department. Its operations were governed by
the Pakistan telecommunication Corporation Act 1991. In 1991 GOP announced its intent to
privatize PTC and appointed a financial advisory team led to Bear Steams and Coopers &
Lybrand based on whose advice the GOP decided to sell the 26% stake of the share capital, with
management rights, of PTC by converting into a limited company under the provisions of
Companies Ordinance, 1984.
Later on, GOP decided to sell 11.8% of its share, in the shape of vouchers, on stock market
through domestic and international offering. The sale of 26% stake to Strategic Investor
remained on the agenda. In August 1994 GOP issued 1,000,000 (one million) PTC vouchers
exchangeable into 100,000,000 (100 million) PTCL shares (with a nominal value of Rs.10 per
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
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share) and a further 5,000,000 (five million) similar vouchers were issued in September 1994 to
international investors. PTC Vouchers contributed to the National Exchequer about US $900
million (UK placement) and Rs.3 billion domestic issues.
The vouchers were listed and traded on stock exchanges. The price of the vouchers in the first
and second issue was Rs.3, 000 and Rs.5, 500 respectively. GOP also issued Exchangeable Notes
worth US $.150 Million to international investors in February 1997 through Numura
International, UBS & Global Securities. These notes are exchangeable into fully paid “A”
ordinary shares of PTCL – about 3.3% of issued share capital. If the notes are converted into
shares, it will amount to total 15.06% of GOP equity divestiture. In August 1997 a deal of
Securitization of PTCL foreign receivables has been successfully done which fetched US$ 250
million to GOP and equivalent rupee to PTCL. The concept of securitization of PTCL future
receivables from major operators has given opportunity of cheapest possible loan to PTCL.
In 1995, Privatization Commission, GOP appointed a new financial advisor to implement the
strategic sale. Morgan Grenfell, UK, Coopers & Lybrand, Denton Hall, Muslim Commercial
Bank, Deutsche Bank AG, Abacus Consulting and Rizvi, Isa led the team, as members. This new
advisory team initiated work in September 1995 and a lot of steps were taken on their
recommendations.
M/s Goldman Sachs Financial Advisor for Privatization of PTCL started their work with due
diligence. The Government wanted to divest its 26% share with management control. 14 big
international Telecom showed Expression of Interest in PTCL. Among them, 5 reached to the
final stage of bidding, in which UAE’s Etisalat was declared successful. Etisalat got 26% stake
in 2005 at US$1.95 per share generating revenue of US$1.59 billion. Etisalat also got the
management control and has yet to finalize its accrued
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2.4 CURRENT HEAD OFFICE
Established on January 1, 1996
Head Office: - Pakistan Telecommunication Company Limited
G-8/4, Islamabad
2.5 MAIN OFFICES

The Head Office of Pakistan Telecommunication Company Limited is situated in Sector
G-8/4, Islamabad, which is headed by the “President”.
Besides, it has Regional Headquarters like:













Islamabad Telecom Region
Rawalpindi Telecom Region
Hazara Telecom Region Abottabad
Northern Telecom Region-I Peshawar
Lahore Telecom Region (South)
Lahore Telecom Region (North)
Multan Telecom Region
Faisalabad Telecom Region
Southern Telecom Region-I Hyderabad
Southern Telecom Region-II Karachi
Southern Telecom Region-V Sukkur
Western Telecom Region Quetta
Switching network Central region Lahore
Apart from these, PTCL has an Optical Fiber Construction Region Lahore and Optic Fiber
System Islamabad, each headed by a General Manager to install, operate and look after optic
fiber systems/cables.
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2.6
VISION & MISSION STATEMENT
Vision
“To be the leading information and communication technology service provider in the region by
achieving customer satisfaction and maximizing shareholder value”
Mission
 An organization environment that posters professionalism; motivation and quality
 Quality and time conscious customer service
 Sustained growth in earnings and profitability
Core value





2.7
Professional Integrity
Customer satisfaction
Team work
Company legality
Corporate information
OBJECTIVES OF PTCL
Objectives are the ends towards which activity is aimed. These are the results to be achieved.
Pakistan Telecommunication Company limited states its objectives as under
1. To provide quality services to its customers in Pakistan.
2. To provide maximum satisfaction to its customers by using the latest technology.
3. To increase the worth of owners.
4. To lead the telecommunication industry in Pakistan.
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2.8
BOARD OF DIRECTORS
Mr. Rizwan Bashir Khan
Chairman PTCL Board
Mr.Hesham Abdulla Al Qassim
Member PTCL BOARD
Mr. Shahid Mahmood
Member PTCL Board
Mr. Khalifa Al Shamsi
Member PTCL BOARD
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Mr. Mudassar Hussain
Member PTCL Board
Sardar Ahmad Nawaz Sukhera
Member PTCL Board
Mr. Hatem Dowidar
Member PTCL Board
Mr. Serkan Okandan
Member PTCL Board
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Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani
Member PTCL Board
Management staff
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Chapter 3
3.1
ORGANIZATIONAL HIERARCHY
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3.2
DEPARTMENTAL HIERARCHY
G.M (A/N(D&M))
Internshp
Depart
S.M(MM&BB)
Manager
S.E Cord
S.M(HR)
S.M(D&Sp Project)
S.M(Switch)
S.E (as
above)
S.E(switch
)
Engineer
A.D.W
A.D.W
Engineer
A.M
S.M(Fin)
Business
Manage
r
Engineer
S.A.O
Ass: B.M
Assistant Clerks
CPE installers
S.M(Ops
)
E.S develop
R.O
E.S (Switch)
E.S (Bus)
U.D.C, L.D.C,
Stenos etc.
T.O, Tech:,
Wire man etc
Line man, Tech:
Cable etc.
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus)
Tech:, Cable,
Line man etc.
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D.A.O
3.3
TOTAL ORGANIZATIONAL SETUP
The basic management structure of Pak Telecommunication Company Limited is Function–
Oriented for routine operations. It defines job title, pay grades, a set of relatively fixed reporting
relationships, and related formal tasks. In it opportunity tends to be limited to formal promotion
paths, and power flows from the contacts and resources inherent in a defined position. The
nomenclature of jobs is militaristic, same in every section. Its main function is continuing
reutilization of useful procedures. The corporate ethos is bureaucratic moving around T & T
manuals, effecting operating practices, personnel and promotion policies. Pak Telecom has
become a paternalistic institute through life long career programs, having a strong societal
impact. There are long-service employees who have grown up with the company from bottom to
the top management.
The head of the Company is called President, assisted by Senior Executive Vice President, who
control different directorates such as Planning, Operations, International Communications,
System Engineering, Customer Services, Administration and Technology Transfer & Research,
Each Directorate control different Regions under respective jurisdiction. While day to day
operational responsibility is decentralized to 21 different Regions, including 14 geographical
regions. The Head of Region is called General Manager (GM). The GM of the region enjoys
powers mentioned in the T & T manual Volume III. He is responsible for the efficient operation
of telecommunications and finances, revenues and welfare of the staff. The GM ensures that
adequate number of efficient personnel is employed for the satisfactory operation, control and
expansion of telecommunication services.
The GM control different Divisions. The Division is an executive unit of the region and is
headed by Senior Engineer (S.E).
The S.E. controls different Sub-Divisions, headed by Engineer Switch. The SE ensures efficient
administration of his division in terms of technical and welfare matters of his staff. He ensures
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that all sub-divisions are adequately equipped with men and materiel for smooth running of
services under his control.
The Engineer Switch is the In charge of sub-division to carry out the order of Division. The subdivision has different units or sections headed by Engineering Supervisors (ES). The ES acts like
senior technician and practically trace faults and rectify defects. They also supervise the work of
Technicians, Assistants, Line staff and other officials, the different diagrams show the complete
management hierarchy within the PTCL.
Network planning, finance, procurement, technology selection and service development are
purely concentrated within the PTCL Headquarters at Islamabad. Within this framework, there is
little scope for initiative, accountability and responsibility by both management and staff.
3.4
Products and Services of PTCL
The product and services that PTCL is providing to its customers are as follows.

Prepaid calling cards
PTCL prepaid calling cards gives nation wide access with international facility. It comes in easily
affordable denominations of Rs.100, 250, 500, 1000 & 2000. These cards are easily available
throughout the country and it is easy to use it from any PTCL digital phone. Customer has to pay
neither line rent nor bill

Aasan prepaid telephony
Aasan phone is a landline prepaid telephony service, launched in May 2004. This service works
just like the other prepaid services where accounts are recharged with a prepaid phone card.

Toll Free Service (0800)
This service is available to corporate customers for their customer’s convenience. It provides
corporate customers with effective and dynamic telemarketing tool.

Digital Subscriber Line (DSL)
DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax and
Internet facility without keeping their normal telephone number busy. Customer can enjoy
voice chat from telephone with high speed
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other Main products of PTCL:







PTCL landline
V-FONE
UFONE
Customer service
PTCL broadband
Smart services
EVO wireless
Services:












telecom operators
sky link
leased circuits (IPLS / DPLC)
international IP services
PTCL metro fiber network
Interconnection services
Wavelength services
White label services
Calling cards & LDI
Payphones
Network capacity services
Broadband
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Chapter 4
DEPARTMENTS OF ORGANISATION
Every organization is divided into definite departments. Each department performs different kind
of jobs and requires staff with specialized skills to handle particular job. 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 Department
2) Finance Department
3) Commercial Department
4) Operational Department
5) Technical Department
6) IT Department
7) Corporate Affairs Department
8) Special Projects Department
4.1.HUMAN RESOURCE MANAGEMENT
 It is a vast organization and being considered as one of the biggest company in
Pakistan.
 It has more than 56,000 employees and a huge network of organizational management
has been spread throughout the country.
 PTCL is engaging a substantial number of experts and specialists of standing caliber in
different spheres of profession.
 Job analysis and revision of jobs description was undertaken for improving the
performance standards.
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 Efforts are being made to improve productivity and efficiency of the Company while
emphasis is also being placed on effective management employee’s relationship and
better line of communications to achieve corporate goals.
4.2. FINANCE DEPARTMENT
Finance is the mainstay of every organization because without finance any organization can’t run
its business.
This department is divided into following three sub-sections:
 Finance
 Accounts
 Revenue



The Finance Wing deals with all the matters related to revenue and accounts of the
company
the Accounts Wing is responsible for proper book–keeping of the financial transactions,
commercial audit & preparation of periodic accounts of the company.
The revenue wing deals with the collection of bills and customer services.
It plays an important role in determining the long-term objectives.
The details regarding this section will be covered in finance section with reference to my
project.
4.3. COMMERCIAL DEPARTMENT
 Commercial section with qualified/experienced staff is being established.
 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.
 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.
 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 services with thin-profit 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
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Commercial department should try to make PTCL the most profitable organization, which
should generate a great deal of revenue in local & foreign currency.
4.4 OPERATIONAL DEAPARTMENT
Manages operations of PTCL HQ, with regional offices, branches, and, subsidiaries as well as
with other corporations.
4.5. TECHNICAL DEAPRMENT
This department is engaged in the management and control of technical aspects of the company,
e.g. technical manpower, technical training, technical equipment, etc.
4.6. 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.
4.7. CORPORATE AFFAIR DEPARTMENT
This department deal corporate level issues such as PTA, International Telecom Union, Legal
and Regulatory affairs etc.
4.8. SPECIAL PROJECTS DEAPRTMENT
This department is doing their activities on behalf of president.
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Chapter 5
Focus of MY INTERNSHIP REPORT
5.1 STRUCTURE OF THE FINANCE DEPARTMENT
Initially, Finance Department was supervised by GM but after the recent change in management
structure, Finance Department of PTCL is headed by Senior Executive Vice President (Finance),
who is responsible for accounting and finance functions of the organization. The Senior
Executive Vice President is the head of Accounts Department and the Vice Executive President
Finance is the head of Finance Department.
Hierarchal Structure of Finance Department
SENIOR VICE EXECUTIVE PRESIDENT
EVP(Accounts)
GM(Stores)
GM(Accouns)
EVP(Finance)
EVP(Revenue)
GM(Finance)
GM(Revenue)
HIERARCHY







Executive Vice President (Accounts)
Executive Vice President (Finance)
Executive Vice President (Revenue)
General Manager (Store)
General Manager (Accounts)
General Manager (Finance)
General Manager (Revenue)
5.2 FUNCTIONS OF FINANCE DEPARTMENT





Finance system of the organization
Accounting system of the organization
Mobilization of funds
Generation of funds
Allocation of funds
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5.3 MECHANISIM OF FINANCE SYSTEM
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.
 Finance Wing
Split up into three major branches; Finance, Accounts & Revenue.
G.M Finance heads this department. The responsibilities of the General Manager (Finance)
usually fall in the area of financial management, preparation of annual budgets, determining the
revenue targets for the year, investor, and banker relations and controlling the Directors revenue
in all the regions.
 Budget Wing
Budgeting is the most effective instrument to exercise quality control over the financial resources
of an organization and their better utilization. A budget is a comprehensive financial plan setting
forth the expected route for achieving the financial & operational goals of an organization. The
companies engaged in large-scale business essentially have a budget department to carry out
budgeting for the coming financial year. Various functions performed by Budget Dept. of PTCL
are:





Allocation of funds to different head of accounts.
Disbursement of funds or physical transfer of funds to different heads of accounts.
Receive and analyze budget reports.
Recommended actions designed to improve efficiency where necessary.
Tariff Wing
Tariff Wing is further divided into international tariff and domestic tariff. International tariff
means international business with the whole world i.e. international communication with
different countries. However, there is no direct connectivity with all the countries. There are only
40 countries with which PTCL is directly connected through satellite while the remaining
international connection of traffic to other countries through different carriers. There are 52
carriers for this purpose. There are 220 destinations in the whole world to which there is
international communication but the active relationship of PTCL with 52 carriers. The tariff
department decides about TAR & routing plan for international traffic. It also issues Transit
Charges Agreement for those countries to which there in no direct connectivity.
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5.4

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5.4.1

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5.4.2
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BILLS PROCESSING STAGES:
…………………….
…………………….
…………………….
.……………………
…………………….
…………………….
…………………….
…………………….
Bills receiving
Scrutiny
Parking in SAP
Posting of vouchers
Payment process in SAP
Printing of Cheaques
Signing of cheaques
Dispatch of ceaques
BILLS RECEIVING PROCESS
entry of bill in a incoming invoice register
assigning of serial number to the original duplicate and triplicate copies of each bill
entry of serial number and date with initials of receiving person on all copies
checking of availability of relevant documents with the bill
return of duplicate copy and one person submitting the bill
filling of both copies cost center wise
SCRUTINY OF BILLS
checking of availability of relevant documents
checking rates of goods /services acquired
checking of availability of approval from concerned authority
signing of person scrutinized the bill if found correct in alls
attachment of objection letter in case there is any objection
checking and signing of vouchers by the AM finance scrutiny
checking and signing of voucher by the manager finance
demanding funds from AM finance budget if not available in the respective cost
center
sending the files for posting to SM finance 2
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5.4.3


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


5.4.4




5.4.5





5.4.6





PARKING IN SAP
login to the parking user ID in SAP
use of t-code FV60 for parking of payment voucher
use of t-code FV50 for parking of journal voucher
printing of parked SAP voucher
attachment of voucher with the original bill
forwarding of file for scrutiny again
POSTING OF VOUCHERS
SM finance logins to SAP with posting user ID
Posting of voucher through t-code FBV0 in SAP
Signing and stamping over the voucher
Forwarding of vouchers file to manager finance for payment process
PAYMENT PROCESS IN SAP
Payment process in SAP through login ID of payment user
Calculation of income tax /retention money
T-code of f-53 used for creating payment document
The document number entered on voucher for cheque printing reference
Voucher is forwarding for cheque
PRINTING OF CHEQUES
Blank chequeue inserted serially in printing for printing
Printing done through login in ID of payment user
The t-code used for cheque printing is FBZ5
Stamping of cheque signing authorities done after printing
Cheque number entered over the voucher
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5.4.7





5.4.8





SIGNING OF CHEQUES
Checking of particulars of cheque with the voucher
Signing of cheques counter slip
Cheque along with the voucher send to SM finance for signing as a first signatory
Signing of cheque of cheaque form second signatory
Separation of cheque from voucher for dispatch
DISPATCH OF CHEQUES
Printing of envelope for cheque dispatch
Handing over of the cheque envelope to the representative of TCS within 7 days of
the receipt of the bill
Updation of IIR by entering cheque number against each bill
Voucher stamped as PAID
Voucher send for binding
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Chapter 6
FINANCIAL STATEMENTS
The financial statement shows the position of funds of the company either they are in profit or
loss. How much fund borrowed or how much is its own capital.
1.balance sheet
Balance sheet is the financial statement made at a specific time and date, which shows the
current financial position of the company.
Balance sheet is also called the snap shot of the business.
The balance sheet contains different figures of liabilities and assets .
The liability side is mainly consist of.



Share capital and reserves : this part mainly consist of the amounts for the share capital
and amount of reserves for the company. Reserves made from the equity and profit for
the next year.
Long term and differed liabilities :the liabilities which are not payble within the one
financial period are the long term liabilities. Deffered payments are the payments , which
are due but postponed to another financial period.
Current laiilities : all those liabilities that are payble within current accounting period are
called current liabilities.
The asset side mainly consist of .


Fixed capital assets : it is the first item of the assets side of the alance sheet.
It includes all such asset that are to e used for more than one accounting period.the
benefit of such assets are enjoyed for more than one year.
Current assets : these are such assets that are consumed during the business process and
its benefit can be taken for one year.
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6.1
Balance sheet statement for december 31 2016.
Pakistan telecommunication co.ltd
Balance sheet for
2016
2015
( rupees in thousands )
Assets
Non-current assets
Fixed assets Property, plant and equipment
Intangible assets
Long term investments
Long term loans and advances
Investment in finance lease
Current assets
Stores, spares and loose tools
Stock in trade
Trade debts
Loans and advances
Investment in finance lease
Accrued interest
Recoverable from tax authorities
Receivable from the Government of Pakistan
Deposits, prepayments and other receivables
Short term investments
Cash and bank balances
Total assets
170,800,044
37,111,800
207,911,844
101,224
2,200,034
38,513
210,251,615
170,289,008
40,326,443
210,615,451
92,443
2,359,788
96,113
213,163,795
2,742,794
174,351
15,008,567
6,282,398
23 53,030
727,644
19,257,011
2,164,072
6,267,181
28,380,131
8,775,467
89,832,646
300,084,261
2,940,425
248,586
15,549,034
2,643,569
52,255
221,179
22,487,465
2,164,072
2,770,718
26,569,286
3,134,442
78,781,031
291,944,826
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Equity and liabilities
Equity Share capital and reserves Share capital
Revenue reserves
Insurance reserve
General reserve
Unappropriated profit
Statutory and other reserves
Unrealized gain on available for sale investments
Liabilities
Non-current liabilities
Long term loans from banks
Customers deposits
Liability against assets subject to finance lease
License fee payable
Long term security deposits
Deferred income tax
Employees retirement benefits
Deferred government grants
Long term vendor liability
Current liabilities
Trade and other payables
Customers deposits
Interest accrued
Short term running finance
Current portion of:
Long term loans from banks
Liability against assets subject to finance lease
License fee payable
Long term vendor liability
Unearned income
Total equity and liabilities
51,000,000
51,000,000
2,621,288
27,497,072
7,047,199
37,165,559
20,096
1,063
88,186,718
2,416,078
30,500,000
12,668,976
45,585,054
2,007
(995)
96,586,066
26,136,667
2,400,425
1,888
11,228,196
1,493,177
9,562,487
24,121,967
11,570,655
28,987,270
115,502,732
20,975,000
106,308
25,293
19,818,874
1,576,434
12,379,290
32,173,440
9,497,840
24,639,049
121,191,528
71,463,996
5,179,565
580,142
427,428
59,189,010
959,008
554,585
7 838,333
8 34,401
9 4,504,874
14 9,679,951
4,113,549
96,394,811
300,084,261
25,000
31,977
7,584,902
2,163,554
3,231,768
74,167,232
291,944,826
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6.2
INCOME STATEMENT OF PTCL
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED
DECEMBER 31, 2016
2016
2015
117,202,376
118,561,034
Cost of services
(86,693,235)
(88,054,308)
Gross profit
30,509,141
30,506,726
Administrative and general expenses
(17,286,850)
(18,291,409)
Selling and marketing expenses
(7,111,055)
(8,209,247)
(24,397,905)
(26,500,656)
Operating profit
6,111,236
4,006,070
Voluntary separation scheme cost
(4,601,379)
Other income
6,379,225
5,230,068
Finance costs
(3,628,626)
(5,218,817)
4,260,456
4,017,321
Revenue
Share of profit / (loss) from associate
8,781
(2,343)
Profit before tax
4,269,237
4,014,978
Provision for income tax
(2,646,390)
(2,146,512)
1,622,847
1,868,466
Profit for the year
Earnings per share - basic and diluted (Rupees)
0.32
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6.3
FINANCIAL RATIOS
6.3.1
1.
liquidity ratios :
current ratio = current assets / current liabilities
2016 = 89,832,646 / 96,394,811
= .93
2015 = 78,781,031 / 74,167,232
= 1.6
Current ratios
2016
2015
.93
1.6
Interpretation:
Current ratio shows the firm’s ability to cover its current liabilities with its current assets.
Genrally the current ratio when comes 2 is acceptable .by the internal two years (2016-2015)
comparision of PTCL ,I interpret that the current ratio of 2016 is weaker than that of 2015 .
This weaker ratio is because of investing in capital expenditures.in 2016 their investment in
capital expenditures is high therefore the ratio gets weaker.
2.quick ratio = current assets –inventory / current liabilities
2016 = 89832646 – 2917145 / 96394811
= .90
2015 = 78781031 – 3189011 / 74167232
= 1.01
Quick ratios
2016
2015
.90
1.01
Interpretation:
The quick ratio of the company is as same as its current ratio.
I interpret that ,the ability of the company to meet its current liabilities with most liquid assets
of the year 2016 is weaker than that of the 2015.
This trend of decreasing is not favorable for short term creditors of the company.
6.3.2.
Financial liverage ratios :
Debt to assets ratio = total debts / total assets
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2016 = 211897543 / 300084261 = .70
2015 = 195358760 / 291944826 = .66
Debt to assets ratio
2016
2015
.70
.66
Interpretation:
this ratio indicates the percentage of financing assets by debt. For the said years it is interpreted
that,the debt utilization in assets for both years are relatively stable.
Debt to equity ratio = total debt / total equity
2016 = 211897543 / 88186718
= 2.40
2015 = 195358760 / 96586068
= 2.02
Debt to equity ratio
2016
2015
2.4
2.02
interpretation
in 2015 the debt to equity ratio gave the outcome of 2.02 while in 2016 it becomes 2.4.
the debt utilization in 2016 is more than the debt utilization in 2015.
6.3.3
profatibility ratios:
Gross profit margin = gross profit / net sales
2016 = 30509141 / 117202376
= .26
2015 = 30506726 / 118561034
= .25
Gross profit margin
2016
2015
.26
.25
Interpretation :
This ratio shows that how efficient the opratios are handeled .Company has a strong gross frofit
margin at 2016.
Net profit margin = net profit after tax / net sales
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2016 = 1622847 / 117202376
= .01
2015 = 1668466 / 118561034 = .015
Net profit margin 2016
.01
2015
.015
Interpretation :
This ratio indicates the firms profitibilty after deducting all expences .from the interpretation of
both years net profit margin ratio ,it is concluded that at both years they got same profitability .
ROI = net profit after tax / total assets
2016 = 1622847 / 300084261
= .005
2015 = 1868466 / 291944826
= .006
ROI
2016
2015
.005
.006
Interpretation:
This ratio shows the firm frofatibilty on assets side. From the ratio it is interpreted that there is a
poor return on investment for 2016.
ROE
= net profit after tax / total equity
2016 = 1622847 / 88186718
= .01
2015 = 1668466 /96586066
= .01
ROE
2016
2015
.01
.01
Interpretation :
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This ratio indicates the firm profatibilty on equity . from the ratios it is interpreted that there is
equal return on equity for both years .
activity ratios :
6.3.4.
Receivable turnover = annual net sales / account recievables
2016 = 117202376 /33970662
= 3.45
Receivable period = days in the year / RT
= 365 /3.45 = 105
2015 = 118561034 / 30065824
= 3.94
RP = 365 / 3.94 = 92
Receivable
turnover
2016
2015
RT =3.45
RT = 3.94
RP= 105
RP =92
Interpretation :
This turnover ratios interpret that ,the collection days of 2016 is more than that of 2015 .soo it is
weak collection .
Assets turnover = net sales / total assets
2016 = 117202367 / 300084261
= .39
2015 = 118561034 / 291944826
= .40
Assets turnover
2016
2015
.39
.40
Interpretation :
It is interpretad that ,the generation from assets to sale is at relative position for both years .
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Chapter 7
SWOT ANALYSIS
SWOT ANALYSIS OF FINANCE DEPARTMENT
The scan of external as well as internal environment of an organization is an important
part of strategic planning process,which is performed by strategic planning tool that is
Swot analysis.
Swot analysis consists of internal as well as external factors to the organization.
Internal factors are strengths and weaknesses.
External factors are threats and opportunities.
 STRENGTHS:













Basic strength is SAP software.
Good infrastructure
Good team work
Good working condition
Employees are work efficient
Maintainers of good finance position
Work distribution
Cooperative employee
Regular employees are satisfied
Employees has good communication skills
Employees has intellectual skills due to spending a lot of time
Good working condition
Good relation with managers
 WEAKNESSES:
 No innovation.
 Gaps in knowledge of employees in some areas.
 Work burdens on employees.
 Issues with employees promotions
 Unsecure job of contractual employee
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 OPPORTUNITIES:






Can improve employees’ motivation.
Make employees for new innovations to quickly
With changes.
Can improve employee’s skills.
Gain more efficiency through business process analysis.
Add new products.
Bring changes
adjust
 THREATS:






Software hacking.
Miss management.
System destroys.
Virus to the system which can damage all the data.
Government legislation
Innovative competitor
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Chapter 8
RECOMENDITIONS
Below are the recommendations which I found about the organization during my stay with
them for the purpose of internship.





I recommend that PTCL have to provides cross departmental training to employees
job security of contractual employees
solve issue of employee promotion
training and development of employees
bring innovation in product and service
CONCLUSION:
after the completion of my internship with PTCL for about 8 weeks for the fulfillment of
the requirement of my BBA degree program I here by conclude that ,the internship in
PTCL was a good experience During this period I have gained a lot of knowledge and
practical experience.
I have practically realized the importance of individual /practical work.
The very important thing which I realized is, like any other basic sphere of modern socioIndustrial activities, Telecommunication is a main and important field for the development
of any country.
The staff of organization is highly qualified and their behavior is friendly .
also the working environment of organization is very good.
So I recommend all students who do their internship in future, should do the training
program with PTCL.
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Chapter 9
LIST OF ACRONYMS
ACP
Average Collection Period.
BOD
Board of Directors.
BOT
Build, Operate and Transfer.
CFS
Cash Flow Statement.
EBITDA
Earnings before Interest, Taxes, Dividends and Appropriations.
EPS
Earnings per Share.
FAB
Frequency Allocation Board.
KSE
Karachi Stock Exchange.
NBV
Net Book Value.
NTC
National Telecommunication Corporation.
NWD
Nation Wide Dialing.
PTA
Pakistan Telecom Authority.
PTC
Pakistan Telecommunication Corporation.
PTCL
Pakistan Telecommunication Company Limited.
ROCE
Return on Capital Employed.
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ROE
Return on Equity.
STD
Subscriber Trunk Dialing.
T&T
Telephone and Telegraph.
WLL
Wireless Local Loop.
SAP
Standard Application Products.
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Chapter 10
REFRENCES
1. C JAMES , M JHON., 2009.Fundamentals of financial management 13TH EDITION :FT
PRENTICE HALL.
2. www.scribd.com/document/138862958/A-Report-on-Pakistan-TelecommunicationLimited-Comany
3. TARIQULLAH ,2010 internship report on PTCL . Submitted to : UNIVERSITY OF SCIENCE
AND TECHNOLOGY BANNU.
4. https://ptcl.com.pk/Financials .
5. https://ptcl.com.pk/Home/FinancialFiles?ItemId=51&linkId=115
6. www.scribed .com /document/138862958/ a-report-on-Pakistan-telecommunicationlimited-company.
7. Annual report of PTCL, 2015.
8. Annual report of PTCL, 2016.
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