SUI SOUTHERN GAS
COMPANY
INTERNSHIP REPORT
WAHAJ MOHAMMAD KHAN
20171 – 22334
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GENERAL INFORMATION
Name: Wahaj Mohammad Khan
ID No. 20171-22334
Semester: 8th Semester
Major Field: BS Accounting and Finance
Organization where internship was served: Sui Southern Gas Company Limited
Duration: From 24th May 2021 to 2nd July 2021
Report based on Option 1 - Theories learned in Academics and their Application
Due date of the report 17th July 2021
Report submitted on 11th July 2021
Delayed by N/A days
(if applicable)
Reasons for delay Not Delayed
(if applicable)
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Contents
INTRODUCTION OF THE COMPANY..................................................................................................... 4
DEPARTMENT (S) TO WHICH YOU WERE ATTACHED..................................................................... 5
OVERVIEW OF SUB-DEPARTMENTS: ................................................................................................... 6
FINANCE: ................................................................................................................................................ 6
GAS PURCHASE:................................................................................................................................ 6
PROJECTS: .......................................................................................................................................... 7
PRE AUDIT: ....................................................................................................................................... 10
INSURANCE:..................................................................................................................................... 11
NLO (Non Local Order)/LO (Local Order): ....................................................................................... 13
ACCOUNTS: .......................................................................................................................................... 15
FIXED ASSETS: ................................................................................................................................ 15
METER PLANT: ................................................................................................................................ 18
BUDGETING: .................................................................................................................................... 19
TREASURY: .......................................................................................................................................... 19
REVENUE COLLECTION: ............................................................................................................... 19
CASH & BANK: ................................................................................................................................ 20
THEORIES LEARNED IN ACADEMICS AND THEIR APPLICATION .............................................. 20
BUSINESS AND PROFESSIONAL SPEECH .................................................................................. 20
ORGANIZATIONAL BEHAVIOR ................................................................................................... 21
PORTFOLIO MANAHGEMENT ...................................................................................................... 22
INTERMEDIATE FINANCIAL ACCOUNTING ............................................................................. 22
PLAGIARISM CHECK.............................................................................................................................. 23
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INTRODUCTION OF THE COMPANY
Sui Southern Gas Company Limited, previously known as Sui Southern Transmission Company
Limited is the Gas Supply Company located in Karachi. Company was formed in 1955, and later
after a merger with Karachi Gas Supply and Indus Gas Supply in 1989, it formed into SSGCL.
SSGC is a unified or integrated gas company, and is also a Public Listed Large Scale Company
(LSC). The Government of Pakistan straightforwardly and by implication possesses most of the
shareholding of Company. The organization is occupied with the business of transmission and
distribution of gaseous petrol other than establishment of high weight transmission and low
pressure distribution frameworks; mainly in Baluchistan and Sindh. Consisting of over 3,614
KM of high pressure pipelines ranging from 12″ – 42″ in diameter. The distribution activities
covering over 1200 towns in the Sindh and Baluchistan are managed through its regional offices.
About 384,979 million cubic feet (MMCF) gas was sold in FY 2015-2016 to around 2.8 million
industrial, commercial and domestic consumers in these regions through a distribution network
of over 44,761 Km. The company also owns and operates the only gas meter manufacturing
plant in the country, having an annual production capacity of 356,000 meters on single shift
basis.
Additionally, the organization claims and works the only gas meter manufacturing plant in the
nation, under a concurrence with Schlumberger Industries, France. Even the SNGPL purchases
its meter plants and it’s repairing parts from SSGC. Moreover this organization is recorded on
the Karachi, Lahore and Islamabad Stock Exchanges; now all merged as Pakistan Stock
Exchange.
The Company is overseen by a self-governing Board of Directors containing 11 individuals. The
Managing Director/Chief Executive is named by the Government of Pakistan and has been
designated with powers as vested by the Board of Directors important to viably lead the business
of the organization.
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DEPARTMENT (S) TO WHICH YOU WERE ATTACHED
ACC & FIN DEPT.
FINANCE
GAS PURCHASE
PROJECTS
PRE AUDIT
ACCOUNTS
FIXED ASSETS
(ACCOUNTING)
METER PLANT
BUDGETING
INSURANCE
NLO/LO
FUNDS
TREASURY
REVENUE
COLLECTION
CASH & BANK
Page |6
DEPARTMENT DETAILS
Department: Accounts and Finance
Supervisor’s Name: Muhammad Riaz
Designation: Deputy General Manager (Accounts)
Duration: From 24th May 2021 to 2nd July 2021 (6 weeks)
OVERVIEW OF SUB-DEPARTMENTS:
FINANCE:
This includes: Projects, Payroll, Gas Purchase, Funds, Bid Bonds, NLO/LO, Insurance, Pre audit.
GAS PURCHASE:
Gas Transmission and Distribution in the provinces of Sindh and Baluchistan is the main
business that SSGC is engaged in. The core business of the company includes is to make and
implement Natural Gas transmission and distribution projects, whereas its non-core business
includes purification of Gas, manufacturing and selling of Gas meters, not only in these two
provinces but also SNGPL, sales of condensate as by-product; and special projects like
construction contracts for laying of pipelines.
When Gas is found in fields in anywhere in Sindh and Baluchistan, the Government informs
SSGC. SSGC then contacts with the suppliers or operators who would work there and extract the
Gas that gas is then transmitted through the pipelines set by SSGC from where it reaches the
Terminals of different cities and is therefore then distributed to the clients. Any gas field owned
by two or more companies is called a joint venture where one company acts as operator on
behalf of other companies. On any field local operators can work alone, but foreign operators are
not allowed to work alone.
The fields from where gas is extracted in these two provinces sums up to approximately 52.
Some of the local fields are: OGDC, GHPL, PPL, and Mari Petroleum. The foreign ones are as:
UEP, ENI, Mari, OPPL, and POGC. The payments of foreign operators are done through Mform.
As SSGC is a Government owned entity it functions on the rules and regulations as per given by
OGRA (Oil and Gas Regulatory Authority). The gas sale and purchase between gas producer and
buyer is governed by the terms of Gas Sales Agreement (GSA), which is signed by the joint
venture partner(s) as Seller(s) and SSGC as Buyer and the Government of Pakistan (the “GOP”).
All the agreements with foreign gas producers have also been signed by the Government of
Pakistan (GOP) as guarantor.
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WORKING:
 The supplier/operator creates a monthly gas sales invoice in accordance with GSA and
sends it to SSGC.
 SSGC then enters it in its control sheet.
 Gas charges are applied as per the SRO issues by the OGRA.
 Sales tax invoice is also created; sales tax is applicable at the rate of 17% on the value of
supplies.
 SSGC enters it into Purchase Register.
 Verification of invoices is done by sending them to KT (Karachi Terminal).
 Excise duty is charged on the volume of gas produced during the period. The rate of
excise duty in accordance with provisions of the Central Excise Act, 1944 is Rs 10% of
MMBTU; this is also done as per the notification of OGRA.
 Debit/Credit notes are made by the company for its own working to keep track if the
payments made are correct and of the exact value.
Agreements made with the operators/suppliers mainly includes: Share of suppliers in the work,
volume: over per MMBTU, what type of Gas it is, and the time period of this agreement.
PROJECTS:
Projects department also plays a very important role in the company’s business. This is the
department that works for the distribution of the Gas. When the Gas is transmitted and it reaches
the terminal from here it goes to the town border station if needed and from there it processes to
major/minor lines or the paid mains or supply/feeder mains to the service connection, from
where a point is then attached to the meters to supply Gas to the customers.
The types of customers are domestic customers, commercial customers, Industrial Customers,
and power generation.
Domestic customers include: residential colonies, mosques, churches, temples, other religious
places, and hostels attached thereto, Govt. and Semi-Govt. offices and hospitals, Govt.
guesthouses, armed forces messes and universities, colleges, schools and private educational
institutions, orphanages and other charitable institutions. The processing fees for domestic
customers are Rs. 1000 and it is non-refundable.
Commercial segment is also one of the important segments of SSGC customer Base. This
category includes all establishments registered as commercial units with local authorities or
dealing in consumer items for direct commercial sale like cafes, bakeries, places of entertainment
like cinemas, clubs, theaters, and private office, clinics, maternity homes and other small
businesses etc. The number of commercial consumers currently exceeds s 20,000 and the list is
growing. In the year 2008, in Karachi only almost 144 new commercial customers have
registered
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SSGC is doing an excellent job in fulfilling the gas needs of the industrial sector of our economy.
The customers engaged in the process of creating value added finished products from industrial
raw materials are called industrial customers. This category of customers includes the CNG
stations, Ice factories, Cement factories, Pakistan steel, FFC Jordan Fertilizer. The processing fee
for industrial consumers is Rs. 10,000. These processing charges are non-refundable but adjusted
with the cost of the connection charges.
All units generating power through gas are called power generation units. This includes
WAPDA, KE, and such other entities. Sales to the power sector constituted 46.5% of the total
volume.
Functions in existing areas include:




Main extensions.
Service connections.
Meter installation.
Recoverable jobs.
WORKING:
The working is shared on next page;
Page |9
The process for a new connection is as:
Request received by Sales department with
processing fees.
Visit of customer’s premises.
Cost of customer connection determined.
Quotation sent to customer after GM Sales approval.
Customer pays the advance.
Receipt sent to Accounts department.
Accounts department issues the Job card.
Job Card sent to SITE for commencement of work.
Completed job card is sent back to Finance by Sales.
Accounts department finalizes the project.
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PRE AUDIT:
Pre audit is done so that the company’s financials and activities are duly examined in order to
ensure that all the information that is presented in these documents is correct, before filing in for
an official audit. Here in SSGC, this department is for overlooking the tenders and the contracts
or agreements made by the company.
So what basically happens in a company is that a requisition is made by any user department for
any need of a particular product or service, this is then transferred to the store department; which
checks if it’s already available in the inventory or not. Then if it’s not available or it’s a service
required so tit is transferred to the procurement department for the purchasing.
Now a tender is published, some it requires to be published in both English and Urdu newspaper
and also on the company’s website. From here participants (i.e. various companies) purchase the
tender by contacting with the company and take a part in the bid. After the given time period of
exact 15 days the bid is opened in front of all the participants where the price of that specific
product or service is mentioned by the bidder.
Now comes the part where the company has to decide which bidder to choose. Company mainly
chooses on the fact that which is giving the better need at a better (lower price). The technical
evaluation is done by the user department and then an evaluation report is made by the
procurement department. And finally the bidder is selected.
Accounts department here scrutinizes if all the documents and process is in accordance with the
PPRA, or whether the requisition is original with the department’s head’s sign or not? Were
bidders’ given the time of 15 days to participate or not? Pre audit also manages the letter of
proceed, Bill of Quantity, and finally the billing entry; meaning that it verifies the bills which are
then forwarded to NLO for payments.
Tenders can be bought by local companies/suppliers/manufacturers on their own. However, if
they are foreign then they cannot participate directly an agent has to act on their behalf.
WORKING:
 Income Register: Here any bill or document when it is received in the office is recorded.
Here it is awarded an inward number, referred to whom, name of party, invoice number,
payment, memo date, NLO receiving date, pre audit receiving date, and remarks.
 Outgoing Register: When any bill or file is completed and is moved to another
department then it is recorded in Outgoing register. This includes pre audit number,
memo date, name of party, invoice number, payment, and remarks.
 Evaluation Register: This is for the evaluation reports made of the bidders. This contains
all the information from the start of the work to the end of the work. This includes: tender
P a g e | 11
inquiry, particulars, currency for payment or the rate, pre audit receiving date, DGM
receiving date, clearance date, and remarks.
 Contact Register: This contains details of all the work process, rate and the work
completion period. This includes: tender inquiry, contract number, stamp date, pre audit
number, name of supplier, and the payment.
INSURANCE:
In the present world, where life is full of anxiety, dangers and risks, insurance is essential to
protect and compensate for sudden loss of life and property. It has also been made compulsory
by OGRA to protect assets/property of the company, as well as the insurance of the employee’s
life.
For the larger insurances such as fire policies it is done through NICL (National Insurance
Company Limited), but for the ones with the lower amount of insurance it can be done through
private companies as well.
WORKING:
Kinds of insurance policies made by SSGCL are as:
 Fire policies: These covers any consequential loss, telecommunication, plant, machinery,
loose tools, buildings, gas distribution system, LPG Air mix, SCADA, Gas pipelines
(Transmission & Distribution). The current fire insurance of SSGC is take from NICL
and it provides full comprehensive coverage in respect of “Loss or damage to property
due to fire and lightening “, which can be extended to cover explosion, earthquake (fire
and shock), atmospheric disturbance (rain, flood, hurricane), heat or combustion, riot and
strike damage etc. In this type of insurance amount up to 20 Million is considered as
voluntary excess, meaning that if the damage is up till this amount than company won’t
reimbursed for the damage.
 All risk policies: This type of insurance can be taken other than NICL too from any
private company. This provides coverage against loss on any: Personal Computer,
Laptops, Meter Manufacturing Plant, Cyber Locks, and Cyber Keys. The interests of
suppliers, manufacturers, contractors as well as subcontractors can be included in the
policy.
 Motor vehicles: This insurance provides coverage against Snatch, Theft, Accidental
(Total loss & partial loss). Accidental includes damage due to any natural calamities,
road traffic, fire, or third party liability. This insurance is also done through NICL. The
voluntary excess in this is 20,000 rupees, meaning that amount up to this won’t be
reimbursed by the insurance. When the loss is incurred the user department will report to
the insurance department, from there insurance company will be contacted with all the
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details, they will then send us the claim form, and we will send them these documents:
Insurance certificate, car papers, driver’s statement, license, CNIC, and FIR copy, after
that company will send SSGC a satisfaction note after they’ve had an inspection of our
report that what loss has happened. After this a cheque will be written to SSGC and a
receipt will be given and finally it would be written-off from our accounts.
 Accidental: These include: Cash in safe (at all locations, Cash in transit; meaning that if
there is any burglary or embezzlement from employees or from any outsiders or any
fortuitous event causing accident causing in the loss of money Insurance will cover for it;
then comes Directors PAT (Personal Air Travel), meaning this covers the employer and
employees for any accident, sickness, and medical attention in an emergency that may
occur whilst traveling.
 Risk indemnity: If company faces any sort of loss due to the negligence of its Board of
Directors/ Managing Director/ or Senior General Manager will also be covered by
insurance.
 Group life insurance: This type of insurance is done through bidding; private companies
can also provide insurance for group life. This also includes Accidental and Voluntary
insurance.
Grade
Executive
Group
I to X
12
Salaries
Accidental
I TO 1,500,000
III
IV TO 2,000,000
V
VI
2,500,000
4,000,000
VII
3,000,000
5,000,000
VIII
3,500,000
IX
4,000,000
X
10,000,000
Grade
Premium
Claim Amount
Deductions from
Salary
Benefit
CGTO Executive
Gross 16 Gross Salaries
Subordinate
Staff
400,000
1,000,000
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Voluntary
1 TO 92
VI
VII TO 138
X
200,000
300,000
 Marine Policy: Marine insurance policy covers the risk of imports and exports as per
requirement of the organization. This policy can be extended to provide adequate cover to
protect all goods in transit by other modes of transportation, viz., by Air, Rail & Road.
Through insurance company the goods are protected from the time the goods leave the
seller’s warehouse until they reach the buyer’s warehouse.
NLO (Non Local Order)/LO (Local Order):
Non local Order and Local Order are parts of Accounts Payable Section. NLO deals with
services and contracts, whereas, LO deals with goods. Here the bills are received and then they
are sent to Treasury and Cash and Bank for further transactions.
WORKING:
 In/Out register: Work Bills are received here directly from Pre audit or either the ones
coming in directly these should have the management approval. Here the vouchers are
entered into the system with the name of contractor, date of receipt, NLO number for
processing, discrepancy memos and the rejected ones are also entered here. Upon
satisfactory authorization and validation these payments are then forwarded to treasury
department.
 Preparation of vouchers: Vouchers are checked in respect to nature of expenses, chart of
accounts, approvals, ensuring whether the contractor is filer or non-filer, date of bills, it
shouldn’t be much old. If there is no discrepancy then they are sent forward otherwise
these are returned back. These vouchers are also generated here in NLO department.
 Authorization for approval: As per recent, NLO in charge is authorized to approve Bank
payments up to 500,000, DGM (Finance) up to 1,000,000, and GM (Accounts) actual
bills.
 MIS reporting and accounts: NLO department creates quarterly, half-yearly or yearly
MIS Reports or Account Schedules for the Accounts department as per their
requirements; such as: Rent, Advance for contractors, Retention Money etc.
 Preparation of accrual data: NLO department also creates quarterly, half yearly or yearly
accruals data. They collect data from different departments, prepare the details and sent
the relevant JVs to GL for posting. Upon receipt of relevant bills accrual JVs are
accordingly reversed and payments are processed then.
 Tax documentation and reconciliation: NLO creates sales tax deduction reports and
create sales tax invoices and send them to tax department for reconciliation for claiming
sales tax returns that it pays., and also arranges them from suppliers wherever applicable.
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FUNDS:
Funds department deals with the accumulation of money deducted from employee’s salary
either for giving them final settlement or for giving them loans during their service time.
Settlement is given to the employees in case of retirement, death, termination or resignation.
Whereas loans are given out in case of any important need of employees such as: marriage or
buying a house etc. each of these contain different policies according to which money is
given.
WORKING:
Types of funds are as:
 Provident fund: This type of fund is given out to both executive and non-executive
staff. This is to meet the future demand of the employees and help them. Every month
7.5% of basic salary of executive employee is deducted whereas from non-executive
staff 8.5% of their basic salary is deducted; this is the A account and the company
also contributes the same amount in employee fund, this is the B account. This
amount is not just limited to the retirement time but it can also be withdrawn before in
the form of loans.
 Pension: In this only the company contributes, this is a series of payment that
employee gets at the time of his retirement. It is given as 20% of the monthly salary,
in case of death 50% would be given to the spouse, and if the die too then 10% to the
children if they are under 18.
 Benevolent fund: This is only for executive staff given at a 1.1% of the basic salary
given till after the 5 years of retirement.
 Gratuity: Company gives 8% of the basic salary to the employees each month, on the
death of employee 40 basic salary and 50% of pension is given to the widow, in case
of retirement they get 50 days gratuity if no pension, but if they do take it then 20
basic salary.
 WWPF: This is for the non-executive staff; according to the law instated this is
shared from the 5% of the profit after tax.
There are two types of loans:
 Refundable loan: To be eligible for this employee should at least have a service of 5
years. The amount given on this equals to the 6 basic salaries. For executive staff it can
be maximum returned within 48 installments, and non-executive staff needs to return it in
maximum 30 installments. Markup is applied here.
 Non-refundable loan: If the employee is above 50 years of age they can withdraw up to
60% of the amount from the fund, and if less than 50 then up to 18 basic salaries. On this
loan no markup is applied.
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ACCOUNTS:
This includes: Fixed Assets, Meter Plant (Accounts), General Ledger.
FIXED ASSETS:
This department holds great importance as it generates profitability given SSGC is an asset
based company, with the ownership resting in the hands of government. Government has
made OGRA which sets price for the selling of Gas to consumers. An agreement is made
between SSGCL and OGRA that all the sales revenue will go to government and in return it
will pay the company 17% return on the written down value of all the company’s assets. If
sales revenue exceed ROA then government pays to company to equalize the sales revenue
and return, hence showing a positive GDS (Gas Development Surcharge).
There are two types of expenditures:
 Revenue expenditures: Short term, whose benefits can be enjoyed till one year.
 Capital expenditures: Benefits for these can be enjoyed for more than one year, these
are the long term.
WORKING:
 Assets’ working is as given on next page:
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requistition by User
department to
Procurement
Budget aprroval by
BOD
Uploading it in ledger
with COA
Bids invited by
Procurement
Quotations receiv ed
evaluation report
prepared
Evaluation report
approval
PO issued by
procurement
PO sent to supplier
Material received with
invoice & DA
Material inspection
R/S Prepared
Asset sent to user
department
Charged in asset
clearing account
Asset is capitalized in
FA
P a g e | 17
 Functions of fixed assets:
capitalization
Tax
Depreciation
depreciation
Disposals
Reclassification
Retirements
Adjustments
Transfers
P a g e | 18
 Capitalization is the process of moving of asset from clearing account to its
specific account, where it is now shown in the balance sheet.
 Company uses the straight line method for depreciation on its tangible assets, and
amortization on its intangible assets. Asset cost account and depreciation and
asset clearing account and accumulated depreciation are credited.
 Reclassification of assets is also done sometimes for the correction of the account
or category of the asset in case any mistake was made previously.
 Transfer of assets is also made in case another department needs, so it is
transferred from one location to another. For this Asset Transfer Advice (ATA) is
made.
 Re-appropriation is also done. If as asset is not present for the transfer then a note
is written to Managing Director for the allocation of budget, i.e. re-appropriation.
 Retirement of an asset is done when it cannot be repaired or is not in a proper
working condition. For this an Assets Retirement Advice is made. Asset is retired
but not disposed of immediately.
 An inspection report of asset is also made. For this committee members are
decided.
 At the end finally asset is disposed of. Meaning that asset is removed from the
balance sheet. Its journal entry is made such as: Cash and depreciation are debited
and vehicle and if any gain on its sale is credited.
METER PLANT:
Gas meter sell is also an important source for SSGC for generating income. In 1976 meter
plant was installed for manufacturing of domestic gas meters, and by the year 2003, it
successfully qualified to ISO-9001 Certification. The meter plant here produces two types of
meters:
 G-16 Meters: G-1.6 meters are the locally fabricated meters in which all parts (except
for diaphragm) are being manufactured and assembled at SSGC meter manufacturing
plant. The maximum flow rate of this meter is 2.5 m3/hr.
 V-3 Meters: V-3 (or 3rd generation G-4) meters are the improved version of G-4
meters against theft. The major part i.e. the measuring unit is imported while rest is
manufactured locally at plant. The maximum flow rate of this meter is 6m3/hr.
WORKING:
 G-16 has a lower capacity as compared to the V-13. The manufacturing of these are
completely done here: from die casting to painting to assembling, calibration and lastly to
the selling part. The die casted parts for 5-16 are as: Body & top cover, and for V-3: top
case and bottom case.
 SSGC has 5 locations where its meter plant is located.
P a g e | 19
 Accounts department creates monthly, quarterly, half-yearly, and yearly MIS reports and
further send them to General Ledger, Managing director, and DGM and SGM.
BUDGETING:
The major function of cost and budget section is cost controlling and maintaining of revenue
expenses and also accumulation of revenue cost which is incurred during the period, and
planning for allocating the budget to the individual department. And another function of this
section is to calculate the cost of operating and administration section.
Its main purpose is to minimize the extra cost, operate the organization effectively and
efficiently, control the cost of operating and administration to help in running organization
smoothly.
WORKING:
 Budget for next year is prepared by the end of previous year. Firstly, budget sends a
proposal to every department to know the requisite budget for each department. After
than here they compare this proposal with the last year budget for this department and
negotiate and ask for justification. Then these proposals are sent to GM finance, Finance
and Audit committee, and then finally to the Board of Directors for approval. Board of
Directors is also allowed to make any changes in budget. Once it is finally approved it is
uploaded.
 Usually budget is uploaded using Application Desktop Integrator (ADI). ADI allows the
user to create and modify budget in an Excel spreadsheet which can then be uploaded to
Oracle General Ledger.
 After the uploading of budgets, these are checked to make sure that budgets are correctly
allocated in their accounts. After having complete satisfaction the cost & budget section
release or allocate the budgets in the accounts of every department.
 Release of budgets completes the process of budget allocation. In the new fiscal year the
departments perform their activities and incur expenses. The expenses are debited in the
accounts causing the budget accounts credit.
TREASURY:
Revenue Collection, Cash & Bank, Loans, Investment, Taxation.
REVENUE COLLECTION:
SSC is a transmission and distribution company so it generates most of its revenue from bills and
the rest is from its bi-product. There are 3 types of customers: Industrial, Commercial and
Domestic. This section not only collects revenue but also deals with any bank and customer
queries arising.
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WORKING:
When a customer pays bill, bank stamps the bill, return it and keeps the STUB (receipt
containing employee number and amount paid with themselves. They then make a scroll
sheet and then create a pay order. It is then handed over to NIFT. It ten collects all the
documents, scan STUBS and process further. A pay order is maintained payable to SSGC of
the amount accumulated by every bank branch and deposited in Dubai Islamic Bank by NIFT
where SSGC account is maintained. So automatically system debits bank account and credits
the customer account.
For customers facilitation centers are at head office, regional office and at all zones. If any
mistakes or query arise they facilitate. Also in RCA section and Billing department all bills
are verified again. And check if there is any amount to reconcile, whether there is any
difference or not. RCA department also pays collection charges and processing charges.
CASH & BANK:
This section is responsible for the receipts, payments, and collection of funds either in the
form of cash, bank delivery or through cheque.
WORKING:
In cash section, all sorts of payments are made. Every day they receive a certain amount of
petty cash and then at the end of the day any excess amount is returned back to the strong
room.
In banking side, two major things are done: collection (inflows) and disbursement (outflows).
Collections are made through various channels. Since SSGC has a large customer base so it
is important to responsibly collect all the returns in either accounts receivable form or cash.
Here payments are also made for the services used by employees, in the disbursements. Like
payments are made to hospitals, or to clubs for the employees memberships, etc.
Here reconciliation is also done, daily records are maintained in bank book and company
book to check in case of any mishaps causing difference; as SSGC deals with approx. 38
banks.
THEORIES LEARNED IN ACADEMICS AND THEIR APPLICATION
Which theories / concepts you learnt at IoBM that you saw being applied in the organization?
BUSINESS AND PROFESSIONAL SPEECH
First of all I will start with Business and Professional speech because I think this is the course
that helped me to know about how to make a good impression on employers which increases the
chance for you to get shortlisted for applied position. This course was taught to me and my
fellow class mates by Sir Muhammad Asif Khan in 8th Semester. This course was mainly
P a g e | 21
focused on enhancing speaking power mainly English in front of audience and also taught us
how to carry ourselves during a job interview and after you are short listed. Some of the major
guide lines were:
 Interview call: As our respected teacher taught us that we should always consider
interview call as mini interview because this is the time when you are going to take most
of the information when you are going to arrive at the actual interview. We must try to
get as much as information like we must try to know is our interview going to be a panel
interview or a single person is going to conduct the interview, deliberately ask about
interview timing and location all this is because we need to make this call as an
conversation and not like dominating call.
 Location: Just to make sure that I am going to reach for interview on time as taught by
my teacher I went on day prior to my interview just to see where I am going to go for
interview so that I am on time next day because locating company’s office might take
time. Mine office was at Gulshan e Iqbal opposite to Expo Center.
 Dressing: I was also cautious about my dressing, as our course teacher also taught us how
to have a proper formal dressing which will make you stand out from your fellow
competitors. One must be in dressing pant and dressing shirt with proper tie and his belt
color must be matching his shoe color, these were all the guide lines that I followed to
make a strong first impression on my interviewer which I successfully did.
 Last Touch: When we have arrived for interviewer and we are waiting for interviewer to
call us, we should got to rest room just to make sure that everything is right, straighten
your hair, give yourself a pep talk and go back and wait patiently for your turn with all
the relevant documents required for the interview.
ORGANIZATIONAL BEHAVIOR
It is the study of human behavior in an organization. This course was taught by Dr. Fazal Khalidi
in 2nd semester. He did a great job at teaching this course and letting us identify the different
hierarchal structure in an organization. He let us know that organizations are built over
individual, group and than an entire organization, which I experienced in SSGC that every
individual was trying to perform his task at his best as they were clear about companies future
plans and every individual was working collectively as a group to achieve that goal.
One thing that I observed there was that managers were well aware about employees under them
and knew to differentiate between the team members and how to manage them effectively. It was
because of their clear direction that every individual in each section so well connected and were
working together for better future of the company. As for example, when the company is
formulating the capital budget for the company Capital Expenditure department writes an email
to every department of the company in a specified format which is then sent by every department
to the expenditure department then it is sent for further conformation to senior management, who
then communicates it to their seniors till the BOD and after receiving their approval expenditure
is carried out.
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According to me a huge company such as SSGC itself, communication could have been a
problem but after studying above example we can say that the company is remarkably
overcoming communication problem and overall maintaining the speed of workflow.
PORTFOLIO MANAHGEMENT
This course was taught in 8th semester by Sir Taha Rehman. In this course we were taught about
how to make best combination of different investment avenues to get the highest possible profit
out of it. To make the concept simple he told us to focus on a single asset class which was stocks
and told us to invest in those stocks using virtual money, and try to earn profit by applying the
strategies and formulas taught to us thought out the semester. Usually a normal portfolio consists
of different asset classes such as:
1)
2)
3)
4)
5)
6)
Stocks
Real Estate
Crypto Currency
Bonds, T Bills
Gold
Cash
I saw this real life example of portfolio management at SSGC when I was performing my duty at
Funds section in SSGC. Company had invested in different asset classes like Stock, bonds and TBills but they mainly in bonds and T-Bills as they were willing to have a longer term and a stable
revenue streams and wanted to avoid high risk market such as stock market, that is why they
were having minimal investment in these stocks mainly bought of blue chip companies so that
they can earn dividend over these companies. Also as explained in report company’s core
operation was to transmit gas to relevant user and not an Investment Company so SSGC’s
strategy was to earn money on the additional cash remaining, but never utilized all of the free
money so that they can keep their liquidity high and can easy run day to day expenditure easily.
INTERMEDIATE FINANCIAL ACCOUNTING
Lastly accounting course FA2 taught by Sir Khurram Ali was a great help during my internship.
As I was carrying out my internship at Accounts and Finance Department, learning in this course
was greatly being implemented all over the department in SSGC, whether we talk about
Accounts, Finance or Treasury department every section of these departments were using
accounting standards to record transactions. This course taught me how to construct Financial
statements and at SSGC I saw how every component in financial statement contains a detailed
working before it is carried forward to financial statement.
We can take example of fixed assets, where this section is only dedicated to calculate the right
amount of asset to be recorded in balance sheet by adjusting depreciation of new and disposed
assets. Also they are responsible to record any gain and loss in disposal of asset in income
statement, and cash flow statement and carefully monitoring the disposal of asset.
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Have you learnt any new theories / concepts?
As SSGC is a semi-government company they have to follow the guidelines set by OGRA
(government regulatory authority assign to monitor over SSGC) for buying of goods and
services. For example if they have to buy a car they have to first place a tender in local
newspaper, which is mandatory for government companies and not for private entities. Then
after collection of different tender letters they have to filter out the best on on the basis of
technical and fundamental analysis and after that the tender is given to the contractor.
Other than buying goods and services, for selling of goods what I have learnt is that for example
if the company desire to sell an asset after carefully analyzing the asset condition=, that whether
the asset like car is having a potential to be used for further time period or do we need to dispose
this off. After that if company decides to sell that asset than an auction is arranged at a specified
date which is shared through news paper, in which anyone and everyone is allowed to place bit
for asset they wish to buy expect for the company employees who are not allowed to take part in
the biting process.
PLAGIARISM CHECK