final internship report

INTERNSHIP REPORT ON PTCL

INTERNSHIP REPORT ON

PTCL (Pakistan Telecommunication Company Limited)

Presented to:

Department of Commerce

University of Sargodha, Sargodha

Presented by:

Muhammad Ashraf

Roll # 31-ss

M. Com (2008-2010)

Email: [email protected]

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University of Sargodha

www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/


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IN THE NAME OF ALLAH WHO IS THE MOST

BENEFICENT

&

EVER MERCIFUL

PRESIDENTS MESSAGE

I have taken immense pride in assuming the duty as President and CEO of PTCL, which is a great

opportunity for me to execute my responsibilities as a team leader.

To me Pakistan and PTCL are synonymous with an opportunity for growth. The potential of this growth is visible to me as it is about the human capital we have in the form of talented and experienced employees. I can assure you that with the traditional dedication and determination of PTCL workers we will transform this company into a world class ICT Company.

I am proud of my fellow colleagues who have been leading the market so far and have been

adapting to changing technological advancements. After the deregulation in the telecom sector of

Pakistan, PTCL is now again ready to face new challenges in a competitive environment.

We are poised to retain our leadership position by giving PTCL a new and improved look. The

new colors of the Logo are in context with every Pakistanis sense of identity and patriotism;

green and white being the colors of purity and honesty, the colors of trustworthiness and integrity,

the colors of Pakistans flag and the colors of every Pakistanis passion.

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INTERNSHIP REPORT ON PTCL Be assured that PTCL will remain the peoples first choice of communication in the future.

Promising you the best of our services, at all times.

Preface

In fact, for the students of M. Com. The two months internship is a golden chance to

develop the capability and skill of administration and management in the practical environment of

different organizations. In the context, I select the PTCL (PAKISTAN

TELECOMMUNICATION COMPANY LIMITED). This report shows and will guide the

readers to have an idea about maintain accounts, its operations and the practices followed today

in Pakistan. My reasons for doing the internship program in PTCL is to get first hand knowledge

about maintain accounts and improve my business life, because PTCL is the best organization

indeed.

I tried to remain to the point, in writing the report. Brief history, management, organizational

structure of PAKISTAN TELECOMMUNICATION COMPANY LIMITED and my work at

branch suggestions, for improvement are also given in it.

Moreover, particularly being a student of Finance & Accounts it is necessary for me to get

practical knowledge of the managerial & financial activities of the organization. So I have tried

my best to learn a lot about accounts because it relates with financial activities. I have made all

possible efforts to summaries the broad history and working of the organization.

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INTERNSHIP REPORT ON PTCL This work is a collection of my observations and experience during the internship period and

afterward. The sources of my information for the preparation of this report also include the

written notes, literature on banking, verbal discussion with staff members, senior students and my

fellows.

Internship Program is a conventional constituent is part of total spectrum of M. Com. The

information contained in the report is based on my personal observation, practical working and

interviews with the staff during my internship training.

Dedication

No words can adequately express my overriding debt of gratitude to my parents whose support

helps me in all the way. Above all I shall thank my friends who constantly encouraged and

blessed me so enable me to do this work successfully.

Acknowledgements

In the name of Allah, who gave me ability and strength to complete my internship. I owe

considerable debt to large number of persons who either directly or indirectly helped me during

various phases of internship. It was a new experience, exciting but challenging and indeed

guidance rather frequently, which was afford very generously.

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INTERNSHIP REPORT ON PTCL My special thanks to Miss Imrana Asad for her guidance and support during my internship report

preparation.

In PTCL I am grateful to all the staff members for providing me an opportunity to work in the

organization at the style and speed of my convenience. I also wish to record my gratitude for the

following staff members for transforming my theoretical knowledge in practical understanding,

despite their heavy commitments they always found time to answers my questions, resolve

queries and never ran out of patience.

Executive Summary

By the grace of almighty God, I have successfully completed my 8 weeks internship as per

requirement of M.com course. I was appointed at PTCL Headquarter Islamabad Sector G-8/4. I

feel my self-lucky to have worked with such a cooperative, dedicated, result-oriented team. They

all helped me in every possible way they can. I was happened to work in INTERCONNECT

REVENUE DEPARTMENT.With 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 customers of the

country. It has the potential to be an instrumental agent in Pakistans 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.

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

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INTERNSHIP REPORT ON PTCL discussed as pr 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 its 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 sows what ar e 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 cant be negligible are discussed. Thus

this report completely depicts the true picture of PTCL in a meaningful way.

I have completed my 8 weeks internship successfully in PTCL(Pakistan Telecommunication

Ltd.) in Interconnect Revenue Department from

June 21, 2010 to Aug 23, 2010.

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TABLE OF CONTENTS

Industry Introduction 10

---- History of Organization 12

a. Vision Statement 18

b. Mission Statement 18

---- Main Features 19

---- projects& activities 23

Products & Services 28

Compatetors 32

Moral Values of Employees 32

Organizational Structure 34

---- Hierarchy Chart 37

---- Number of Employees 37

---- Introduction of all Departments 38

Departments and their Working 41

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Finance system of PTCl 46

Funding of PTCL 48

. Work done by Internee 54

Financial Analysis of Organization 56

---- Significance of ratio 56

---- Components of ratios (formulae used ) 60

6. SWOT Analysis 69

7. Conclusion 73

8. Recommendations 78

9. Limitations 80

10. Bibliography 80

11. Annexes 81

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INTRODUCTION

Pakistan Telecommunication Corporation (PTC) has established in December 1990,

taking over operations and functions from Pakistan Telephone and Telegraph Department under

Pakistan Telecommunication Corporation Act 1991.

This coincided with the Government's competitive policy, encouraging private sector

participation and resulting in award of licenses for cellular, card-operated payphones, paging and,

lately, data communication services.

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In 1994, the PTCL becomes the company limited (Pakistan Telecommunication Company

Limited) by issued six million vouchers exchangeable into 600 million shares of the 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.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for

PTCL monopoly over basic telecommunication sector in the country. It also paved the way for

the establishment of an independent regulatory regime. The provisions of the Ordinance were lent

permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act.

The year 2006-07 in the telecom sector was marked by the phenomenal growth in the

mobile sector in Pakistan, which doubled its subscriber base to 60 million. The teledensity

increased from 26% to 40%, helping to spread the benefits of communication technology across

the country. PTCL s mobile phone subsidiary Ufones subscriber base grew by more than 87%,

from 7.49 million to 14 million. The year also witnessed the entry of major telecom companies,

most notably China Telecom and Singtel, into market.

The privatization of the company was completed in the FY06, following the purchaser of

26% B class ordinary shares by Etisalat International Pakistan L.L.C. EIP took over

management control on 12th on April 2006.

In short PTCL has been working vigorously to meet the dual challenge of telecom

development and socio-economic uplift of the country. This is characterized by a clearer

appreciation of ongoing telecom scenario wherein convergence of technologies continuously

changes the shape of the sector.

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INTERNSHIP REPORT ON PTCL CENT RAL BACKGROUND

The telecommunications industry is at the forefront of the information agedelivering voice,

data, graphics and video at ever increasing speeds and in an increasing number of ways. Whereas

wire line telephone communication was once the primary service of the industry, wireless

communication services and cable and satellite program distribution make up an increasing share

of the industry.

The largest sector of the telecommunications industry continues to be made up of wired

telecommunications carriers. Establishments in this sector mainly provide telephone service via

wires and cables that connect customers premises to central offices maintained by

telecomm urinations companies. The central offices contain switching equipment that routes

1content to its final destination or to another switching center that determines the most efficient

route for the content to take. While voice used to be the main type of data transmitted over the

wires, wired telecommunications service now includes the transmission of all types of graphic,

video, and electronic data mainly over the Inter net.

These new services have been made possible through the use of digital technologies that provide

much more efficient use of the telecommunications networks. One major technology breaks

digital signals into packets during transmission. Networks of computerized switching equipment,

called packet switched networks, route the packets. Packets may take separate paths to

their destination and may share the paths with packets from other users. At the destination, the

packets are reassembled, and the transmission is complete. Because packet switching considers

alternate routes, and allows multiple transmissions to share the same route, it results in a more

efficient use of

telecommunications capacity as packets are routed along less congested routes. Wireless

telecommunications carriers, many of which are subsidiaries of the wired carriers, transmit

voice, graphics, data, and Internet access through the transmission of signals over networks

of radio towers. The signal is transmitted through an antenna into the wire line network.

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INTERNSHIP REPORT ON PTCL Other wireless ser vices include beeper and paging services. Because wireless devices require no

wire line connection, they are popular with customers who need to communicate as they travel,

residents of areas with inadequate wire line service, and those who simply desire the convenience

of portable communications. Increasing numbers of consumers are choosing to replace their

home landlines with wireless phones.

Wireless telecommunications carriers are deploying several new technologies to allow faster data

transmission and better Internet access that should make them competitive with wire line

carriers. One technology is called third generation (3G) wireless access. With this technology,

wireless carriers plan to sell music, videos, and other exclusive content that can be downloaded

and played on phones designed for 3G technologies. Wireless carriers are developing the next

generation of technologies that will surpass 3G with even faster data transmission.

Another technology is called fixed wireless service, which involves connecting the

telephone and/or Internet wiring system in a home or business to an antenna, instead of a

telephone line. The replacement of landlines with cellular service has become increasingly

common because advances in wireless systems have provided data transmission speeds

comparable to broadband landline systems.

COMPANY BACKGROUND

Pakistan has made steady pr ogress in expanding telecommunication networks and services

in recent years. In Pakistan this industry had few big giants in the past with PTCL being the

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INTERNSHIP REPORT ON PTCL sole provider of landline telephone service in the country. At present the organizations

principal activity is to provide telecommunication services all over the country. It offers both

domestic and international services throughout Pakistan. PTCL also manufactures

telecommunication related equipment.

Pakistan Telecommunication Company Limited had exclusive rights to provide basic

telecom services in Pakistan till the end of year 2002. With the announcement of Deregulation

Policy by the Government of Pakistan in 2003, PTA has issued licenses for basic telephony to the

private sector in Pakistan who will be competing PTCL, the incumbent. From the humble

beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone

& Telegraph Department in 1962, to this very day, ours is a story of commitment and vision.

PTC set sails for its voyage of glory in December 1990, taking over operations and functions

from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication

Corporation Act 1991. This coincided with the Government's competitive policy, encouraging

private sector participation and resulting in award of licenses for cellular, card-operated

payphones, paging and, lately, data communication ser vices.

Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, and

in 1994 issued six million voucher s 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.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL

monopoly over basic telephony in the country. It also paved the way for the establishment of an

independent regulatory regime. The provisions of the Ordinance were lent permanence in

October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year,

Pakistan Telecommunication Company Limited was for med and listed on all stock exchanges of

Pakistan

Since then, PTCL has been working vigorously to meet the dual challenge of telecom

development and socio-economic uplift of the country. This is characterized by a clearer

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INTERNSHIP REPORT ON PTCL appreciation of ongoing telecom scenario wherein convergence of technologies continuously

changes the shape of the sector. A measure of this understanding is progressive measures such as

establishment of the company's mobile and Internet subsidiaries in 1998.

As telecommunication monopolies head towards an imminent end, services and infrastructure

provider s are set to face even bigger challenges. Pakistan also entered post-monopoly era with

deregulation of the sector in January 2003. On the Government level, a comprehensive

liberalization policy for telecom sector is in the offing.

PTCL is in full awareness of the same, and future policies feature a strong conviction of healthy

competition.

The company is in process of enhancing organizational and business proficiency through

vertical integration and horizontal diversification. At the same time, cross-national ownerships,

operations and partnerships are being evaluated with a view to developing and diversifying the

business.

RESTRUCTURING OF PTCL

The governments efforts to restructure and privatize PTCL have been on-again off-again

since1991. It had an offer in the late 1990s for 26 percent equity, reputedly totaling $3 billion,

butheld out in negotiations and ultimately missed the unique global market window at that time.

Since then, it has had difficulty attracting potential buyers.

Investors have been concerned about political risk, and appropriate support from the government

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INTERNSHIP REPORT ON PTCL to transform the utility into a commercially-oriented corporation. With fortunes rising in the local

telecom sector, the government hoped to make privatization of the company a landmark deal for

broader reform of the economy. A successful deal would demonstrate the governments increasing

support for market capitalism and, it was hoped to, boost anemic levels of direct foreign

investment.

PTCL and the government were contemplating different strategic options for restructuring. Plans

were vetted for both a geographic and functional split of operations. Analysts believed the most

likely scenario is a break-up into three new companies, tracking with the firms largest business

units: local, long distance and mobile. This approach mirrors the policy environment fashioned

for new competitive entrants. From the government perspective, breaking up PTCL prior to as

ell-off will help curtail the market power of any one single service provider, thereby stimulating

competition.

Unbundling the sale was also likely to increase revenues for the government. The risk, of course,

was that the mobile company, PTML (branded as Ufone), was disproportionately more

attractive than the other businesses. According to AKD Securities, PTML's contribution to

PTCL's total revenues was expected to rise to 12.5% over the next five years and was assumed

to contribute 39% of PTCLs overall revenue growth. Future growth of mobile, both in terms of

subscribers and net revenues, was considered to almost certainly outstrip demand for fixed line

services. The target was to sell up to a 26 percent stake in PTCL; the government held 88 percent

of $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,

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INTERNSHIP REPORT ON PTCL indirect conflict with Article 30 of the Public Procurement Rules 2004, it said. By far, the

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

billions ofrupees across the country including commercial plazas, residential colonies and

exchanges. According to the government documents, the Share Purchase Agreement (SPA) of the

PTCLwith 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

additional concessions and modifications to the transaction structure offer

VISION

To be the leading Information and Communication Technology Service Provider in the region by

achieving customer satisfaction and maximizing shareholders' value'.

The future is unfolding around us. In times to come, we will be the link that allows global

communication. We are striving towards mobilizing the world for the future. By becoming

partners in innovation, we are ready to shape a future that offers telecom services that bring us

closer.

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MISSION

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

Professional Integrity

Customer Satisfaction

Teamwork

Company Loyalty

Features

Pakistan Telecommunication Company Limited (PTCL) is the primary provider of

Telecommunication services in Pakistan. The range of

services include basic telephony, telegraph, fax, telex, Public data, Internet, E-mail,

ISDN(Integrated Services Digital Network),Universal Access Numbers(UAN), another value-

added services.

Pakistan Telecommunication Company Limited is a professionally managed company and has

initiated measures, with active support of the Federal Government, to inculcate a corporate

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INTERNSHIP REPORT ON PTCL culture that benefits company. Pakistan Telecommunication Company Limited believes that it has

an inherent potential that it can exploit to emerge as an important and active business entity.

Pakistan Telecommunication Company Limited has some basic strength and the potential that

needs to be exploited into real business opportunities. The Directors of the Company feel that a

firm and unwavering commitment towards provision of a complete range of market driven

telecommunication services to its customers using state of the art technology proven products and

a customer care approach is essential in a rapidly expanding telecom market. The radical change

from a monolith state controlled culture to a open market competitive environment. The customer

is becoming and more conscious of the value of telecom services in an improving business

environment.

The advent of digital systems, increasing application of computer technologies and development

of wide-band systems has generated new customer needs. Innovative products and services such

as cellular mobile, high-speed data, Internet etc are much in demand. The current decade has

proved to be the period of sector restructuring and growth globally. To keep pace with the

changes and to meet the emerging new demands, Pakistan Telecommunication Company Limited

has adjusted its programs to meet the requirements of the market. Traditional telecom monopolies

like Pakistan Telecommunication Company Limited need to explore new avenues of technology

and financing to accomplish a quantum leap in growth and bridge the gap between demand and

supply, still remaining financially viable. The Company has taken initiatives and a

change is gradually becoming visible through expanded capacity and increasing revenue.

Pakistan Telecommunication Company Limited has taken decisions to cope with the competition

within the next years. The initiatives taken resulted in the establishment of 100% Pakistan

Telecommunication Company Limited owned subsidiaries like Pak Telecom Mobile

Limited.Paknet and Pak Telecom Pay Phone services limited. These new entities shall provide

cellular mobile information technology, Internet, payphone, prepaid calling cards and other range

of services, Pakistan Telecommunication Company Limited made a conscious decision to enter

the cellular business as it has tremendous potential and an accelerated annual growth of about

60%which is likely to continue for many years.

Pakistan Telecommunication Company Limited has been successful in obtaining a Cellular

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INTERNSHIP REPORT ON PTCL Mobile License for its subsidiary and has selected the GSM 900 state -of theart technology,

which is growing at a much faster rate internationally. Pak Telecom Mobile Limited was

incorporated on 18th July 1998 to establish and run this new business independent of Pakistan

Telecommunication Company Limited with full accounting separation thus creating a level

playing field for industry competitors.

Pakistan Telecommunication Company Limited is following a business-oriented policy to

associate private entrepreneurs in telecom sector development. The options are based on

interconnect and revenue sharing arrangements with license operators and through out-sourcing

revenue sharing with 0 & M contractors as business partners. PTCL has successfully entered into

arrangements with foreign and local telecom companies and has signed three contracts prepaid

calling card service to promote international traffic.

The Government of Pakistan has encouraged the growth of the telecom sector to enable Pakistan

to keep pace with the rapid technological advancement in the field of telecommunication. The

tariff structure remains under constant review of the government to rationalize from the point of

providing adequate returns to the telecom operators and to tap the tremendous potential of the

growth in the demand and market for telecom services. The GOP has reduced the CED on

telecom services, encourages the use of value added services with special emphasis on

proliferation of Internet. It has also reduced the import duties on telecom equipment and allows

tax exemption.

Private sector data and Internet services providers are operating under license and revenue share

arrangements. Internet & information technology services are now very popular in the market and

numbers of new entrants are competing, providing Pakistan Telecommunication Company

Limited an opportunity lease capacity. Its available IT & Internet infrastructure both for private

sector licensed operators and Pakistan Telecommunication Company Limited own customers.

Pakistan Telecommunication Company Limited is launching a three-phased project for IT &

Internet to expand the service to take care of 300,000 customers including the needs of private

license for infrastructure.

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PTCL S CORE OBJECTIVES

The 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

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

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

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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

o and a revenue collection system. Strengthen relation with foreign international administration, entities, services

o providers, international and regional telecom organizations for better internationalo 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

o who are well aware of public relation techniques.

Projects and Activities

1. Urgent Training Needs Programme:

The Urgent Training Needs which realistically depict the post VSS scenario are being assessed

and catered immediately by conducting customized training programs. The involvement of all

departments, regions and business units for providing their valuable input in the form of TNA

response is essential for accurate identification of their requirements. Given the transformation

stage, the most eminent developmental needs were highlighted and incorporated in this program.

2. Customer Care Initiative:

To achieve the pinnacle of Excellence in Customer Service envisioned by the President/CEO the

Training and Development department has assumed the responsibility for effectively imparting

training under the Customer Care Initiative to all PTCL employees.

3. HRD Plan for 2009-10:Page | 22



INTERNSHIP REPORT ON PTCL Training is one of the tools used for the development of employees and to consolidate change on

sustainable ground. In order to address the training needs of all stakeholders of PTCL, EVP

(T&D) has directed training region administration to conduct comprehensive Training Need

Assessment of PTCL employees. This exercise of TNA is required for developing an effective

and need satisfying Human Resource Development Plan for PTCL training centers. The pilot run

of this program is expected to commence by the end of April 2009.

4. Training Incentive offered to VSS Optees:

For the rehabilitation of VSS Optees, PTCL offered a package of post VSS training &

development services, out of which the most beneficial and helpful service offers were

Vocational and Technical trainings.

5. Revamping Project of PTCL Training & Development by Etisalat Academy:

PTCL has a huge training infrastructure throughout the country that is geographically wide

spread. To revamp this wing of PTCL and transform it into a profit center, Etisalat Academy has

been engaged for this project with the following main objectives:

Evaluation of existing training infrastructure

Identification of potential and non-potential training institutes

Development plan for proposed training set-up

Comprehensive workforce analysis of existing Human Resources in T&D department

Proposals regarding computerized learning management system

Preparation of Quality Assurance (QA) systems & procedures

Determination of Key Performance Indicators (KPIs)

6. Implementation of ERP system in T&D:

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INTERNSHIP REPORT ON PTCL The focus of the project is to set up and maintain the qualifications catalogs, create and evaluate

profiles for a range of objects (for example, persons and positions), evaluate career and

succession planning scenarios, set up appraisal systems, as well as plan, hold, and evaluate

appraisals, create development plans, and work through individual development planning

scenarios by customizing the functions of personnel development to meet customer requirements.

7. PTCL Academy activities:

PTCL Academy has been revitalized with a new vision to be recognized locally and regionally as

a center of excellence in the provision of state-of-the-art training and consultancy services in

telecommunications and related fields. It will provide a platform for the creation, dissemination

and exchange of knowledge and expertise in all areas of telecom and IT to internal and external

stakeholders. Some of the programs on its agenda are:

Ph.D. Programme

MS programme

Post Graduate Diploma

Cisco Regional Academy Programme

Oracle Academy Programme

Joint venture with CISCO and NUST

Seminars / Short Courses / Certificate programmes

Course development for new offerings (technical and management courses)

Testing / Inspection of telecom equipment

8. Lineman Training Programme:

The declaration to celebrate year 2008-09 as year of Customer Care & Satisfaction by the

President/CEO of the company, has entrusted upon Training & Development Department a

gigantic task to transform our line staff who are the real customer care agents of PTCL. This

initiative is the part of companys strategic vision to turn PTCL a leading corporate entity in Page | 24



INTERNSHIP REPORT ON PTCL highly competitive business environment of telecom industry. A mega training campaign has

been launched for all the Linemen of PTCL. The training module prepared by Training &

Development department has tried to address all skill needs most direly required by our Linemen

to cope with emerging technologies in telecommunication. This training will significantly

improve both soft and technical competencies of our linemen and we believe that this training

shall be remembered as a milestone in PTCLs history.

9. Quality Awareness Programme:

In order to create quality awareness and skills improvement of PTCL staff, a 3-year QA plan has

been made. The project is scheduled from March 2007 to December 2009. Following four types

of programmes are under the work plan:

Installation Quality Standards

Quality Auditor Course

Companywide Quality Awareness

Train the Trainer Programme offered to the faculty of PTCL training centers

10. Senior Management Development Program:

Etisalat Academy being the lead consultants of PTCLs Training and Development department

has proposed a meritorious program for the development of Senior Management Team (SMT) of

PTCL. The workshops, their contents and out comes have been reviewed and have been found

beneficial for the company. Proposed plan of five workshops is in line with emerging concept of

Continuous Professional Development. CPD is being promoted for conscious updating of

professional knowledge and enhancement of professional competence throughout a person's

working life. PTCL Training & Development wing is committed to the pursuit of professional

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INTERNSHIP REPORT ON PTCL excellence with its Senior Management Team. PTCLs SMT, though possesses matchless

functional competencies, will benefit from these workshops.

11. Internship Programme:

As per existing policy approximately 194 internship offers were made during 2008-09. Currently,

we are in the process of invigorating our Internship Policy. During the last couple of years

Internship Programme at PTCL has received special attention and focus. The overall concept has

evolved from its traditional perspective into a strategic perspective. We look forward to this

programme not only as a learning opportunity for the participants but also a prospect for PTCL in

its continuous endeavor for talent hunt. It is the process by which we not only contribute

significantly to the development of the best talent in professional and leading universities and

schools, but it also aims at creating PTCL Ambassadors that spread goodwill of the company

all over the country. This programme is intended to provide students with the opportunity to

apply what they are learning in their academic pursuits to real world situations. Through the

successful implementation of this programme, PTCL looks forward to rightly identify, recruit,

train and develop its most important need of the day i.e. the Human Resource.

Products and Services

PTCL Landline

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INTERNSHIP REPORT ON PTCL For local calls the code used is non-STD. For calls to other cities (e.g. Karachi to Lahore) the

code is called STD. For International calls the code used is ISD.

Dialing System

When dialing on landlines, calls made within cities are considered local calls. Calls to other cities

(e.g. Karachi to Lahore) are considered long distance calls and are metered according to distance.

(e.g. When dialing to Lahore from Karachi you have to dial the code for Lahore then followed by

the number of the destination, therefore you dial 0423-XXX-XXXX ). For local calls, you just

dial the local number. For international calls, you dial "00" followed by the country code. (e.g.

For calls to the UK from Pakistan you dial 00 - 44 - XXXXXX ).

PTCL V-fone

It is a product which is wireless. We can use anywhere in Pakistan.

Internet and web browsing is also its feature. It is under CDMA

Ufone

Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its

operations on 29th January 2001 as a GSM 900 service provider. Since the outset, it has

expanded its coverage and customer base at a rapid pace and established itself as one of the

leading cellular service providers in Pakistan. Ufone is now considered to be one of the most

active, aggressive and innovative players in the mobile sector of Pakistan.

The growth of the cellular industry is a direct result of the successful implementation of the

telecom deregulation and cellular mobile policy by the Ministry of IT and Telecommunications

(MOIT&T) and the support, guidance and timely enforcement of regulatory process by the

Pakistan Telecommunication Authority (PTA).

Page | 27



INTERNSHIP REPORT ON PTCL PrivatizationThe growth of the cellular sector in Pakistan can also be attributable to good governance policies

of the government of Pakistan and the Privatization Commission. In April 2006, Emirates

Telecommunication Corporation, which is commonly known as Etisalat, has assumed

management control of Pakistan Telecommunication Corporation Ltd part of the $2.6bn deal to

buy a 26% stake in PTCL. The successful privatization of PTCL, and consequently Ufone, is

hailed as ushering in a new era for telecommunications in Pakistan.

Now, under the management of Etisalat, Ufone will concentrate on customer needs and benefits

and is more determined than ever to be the leading cellular player in the market. Ufone has been

known for providing superb propositions and quality service to its customers. With the new

expected investment, Ufone can now aggressively expand its network coverage.

Key Accomplishments

Ufone has always played a pivotal role in the development of the cellular market in Pakistan. For

the most part, it has been a step ahead in introducing innovative products to the market. Ufone

was a pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) in

Pakistan, and lead the way in introducing GPRS international roaming and prepaid international

roaming for these services in the Pakistani market.

Performance

As mobile users in the country have reached over 28 million at a very rapid pace, Ufone has

maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around

6.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over

200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto

its network. A remarkable achievement indeed, especially considering the fact that two new

international players also entered into the market in 2005. Subsequently the growth in subscriber

base caused a healthy trend in revenues which have doubled.

Page | 28



INTERNSHIP REPORT ON PTCL BrandWhile keeping its tradition of being the trend setter in the industry, Ufone changed the image of

mobile phones from a luxury only affordable by the elite, to a necessity affordable by the

common man. Since its inception, Ufone has positioned its brand for masses. In keeping with the

upcoming competition and market dynamics, Ufone increased its focus on the youth segment

(which comprises 50% of the population), with the Prepay brand. By designing market focused

products, Ufones brand team launched aggressive campaigns, which further increased the brand

equity. The new brand image gained huge popularity amongst the targeted market. A recent

marketing survey conducted by a prominent marketing research company showed that Ufone has

considerably increased its brand visibility and image. Ufones Prepay brand is now considered to

be one of the most favored brands by the youth market and is followed by other mobile operators

launching their respective brands for the youth market.

International Coverage

Ufone provides International Roaming facility with more than 150 international operators across

79 countries. Ufone has GPRS roaming agreements with several international operators and also

provides prepaid roaming facility to selective destinations.

Customer Service

Ufone is proud to have an efficient and friendly customer service through 21 company-owned

Sales & Customer Service Centers and nearly 250 franchisees across the country. The outlets are

able to service the customers with innovative solutions, and are empowered with Web based

franchise management systems. Ufone is poised to face the ever increasing challenges of the

market and is confident it will attract new customers. It has the ability to retain its existing

customer base with a high level of customer satisfaction via optimum network service and a 24

hour call center facility.

Page | 29



INTERNSHIP REPORT ON PTCL Network Coverage

Ufone has always believed in a solid commitment to growth, security and reliability. Therefore,

Ufone has always balanced its expansion efforts and quality of service. With a total current

investment of $400 Million, Ufone has network coverage in more than 260 cities and towns and

across all major highways of the country.

Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a company

committed to excellence. Under the new vision of Etisalat and with the support and collaboration

of its employees and vendors, Ufone aspires to be the best in the market by offering customer

focused products and a quality service and sales network.

Ufone is a subsidry of PTCL. It works under PTA and it is a GSM featured product. Ufone is a

leading GSM service provider in Pakistan now a days.

PTCL Broadband

It is providing high speed internet browsing. DSL is now in top internet speed.

Smart Services

PTCL now a days providing smart TV service in different areas. Over 150 live channels are

available to see with good picture quality.

Page | 30




Competitors

China Mobiles

Orascom telecom

Telenor

Warid

Mobilink

MORAL VALUES OF EMPLOYEES

CUSTOMER FOCUS

We treat each of our customer equality & as the most important person while we interact with

him/her. We must ensure that we do everything to meet and exceed the customers expectations

with perfect to times, accuracy & quality services.

EMPLOYEE RESPECT & DIGNITY

We treat each of our employees with fairness, which includes giving constructive feedback for

their development. We celebrate diversity and seek suggestions from all employees for

improvement. We ensure that responsibility & fairness in all our decision-making.Page | 31



INTERNSHIP REPORT ON PTCL TEAM BASED APPROACH

Organizational Structure

Board of Directors

Mr. Naguibullah MaliChairman PTCL Board

Secretary IT & Telecom Division, Ministry of InformationTechnologyGovernmentof Pakistan, Islamabad

Page | 32


We work towards achievement of our vision & mission as a combines group. We encourage inter

& intra-departmental communications. We treat our colleagues as our internal customers &

ensure that the requirements of internal customer focus are always met.



Mr. Abdulrahim Abdulla Abdulrahim Al NooryaniChairman & Chief Executive Officer, Etisalat International Pakistan L.L.C Executive Vice President Contracts & Administration Etisalat, UAE.

Mr. Salman SiddiqueSecretary (Finance), Ministry of FinanceGovernment of Pakistan, Islamabad

Mr. Abdulaziz Ahmed Saleh Ahmed Al SawalehChief Human Resources OfficerEtisalat, UAE

Mr. Mushtaq Ahmad BhattiMember TelecomGovernment of Pakistan,Islamabad

Mr. Fadhil Mohamed Erhama Al AnsariExecutive Vice President EngineeringEtisalat, UAE

Page | 33




Mr. Khursheed Ahmed JunejoAmbassador, Embassy of PakistanAbu Dhabi, UAE

Mr. Abdulaziz Hamad Omran TaryamGeneral Manager, Northern EmiratesEtisalat, UAE

Dr. Ahmed Al JarwanGeneral ManagerReal EstateEtisalat, UAE

Ms. Farah QamarCompany Secretary PTCL

PTCL Headquarters, Islamabad

Corporate Information

Page | 34



INTERNSHIP REPORT ON PTCL Management

Walid IrshaidPresident & Chief Executive Officer

Muhammad Nehmatullah ToorS.E.V.P (Finance) / Chief Financial Officer (C.F.O)

Mohammad Nasrullah Chief Technical Officer (C.T.O)

Mr. Javed MushtaqChief Information Officer (C.I.O)

Syed Mazhar HussainS.E.V.P (HR / Admin & Procurement)

Sikandar NaqiS.E.V.P (Corporate Development)

Naveed SaeedS.E.V.P (Commercial)

Mr Tariq SalmanS.E.V.P (Business Zone North)

Mr Abdullah YousefS.E.V.P Business Zone South

Mr Hamid FarooqS.E.V.P Special Project

Farah QamarCompany Secretary

Legal AffairsDr. Syed Mohammad Anwar Shah

Bankers

Askari Bank LimitedCitibank N.A.Faysal Bank LimitedHabib Bank LimitedMCB Bank LimitedNational Bank of PakistanRBS (formerly ABN AMRO)Standard Chartered Bank LimitedUnited Bank Limited

Registered OfficePTCL Headquarters,

Page | 35



INTERNSHIP REPORT ON PTCL Block-E, Sector G-8/4,

Islamabad-44000, Pakistan.

Tel: +92-51-2263732 & 34

Fax: +92-51-2263733

E-mail:[email protected]

Web: www.ptcl.com.pk

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

Share RegistrarM/S FAMCO Associates (Pvt.) Limited

Ground Floor,

State Life Building 1-AI . I Chundrigar RoadKarachi 74000

Tel: +92-21-2422344, 2467406

Organization Hierarchy Chart

Page | 36




Number of Employees

Number of employees in PTCL is more then 30000.

Page | 37




Introduction of all department

o Engineering

o Minuteness department

o Operation department

o Research and development

o Marketing

o It is concered with the creation of value for the customers

o Finance

o Accounting department

o Revenue department

o Taxation department

o Human Recourse department

o Training and Development

Comments on the Organizational Structure

Page | 38



INTERNSHIP REPORT ON PTCL The structure of the organization is very good in my opinion.

Departments and their Working

The PTCL Organizational structure needs to be formalized on emergent basis.

FINANCE WING STRUCTURE

At this level there is one head SEVP (Finance) who controls the functions of

FINANCE, ACCOUNTS, and REVENEU with the assistant of EVP in their respective within the

Region, Director Accounts has Senior Revenue Officers in his area of Finance Jurisdiction on

Division Level. The Senior Revenue Officer, usually the head of Finance Division and Revenue

Officers then supervised on District level.

SEVP (Finance)

EVP (Finance), (Accounts) & (Revenue)

The Director (Finance),(Accounts) & (Revenue)

On the Regional Level comprising two or three Divisions.

The Senior Revenue Officers on Division Level

Page | 39




The Revenue Officers on District Level

In view of the challenging scenario PTCL has to take bold steps regarding its

organizational structure in order to demonstrate that PTCL has set-up arms-length

relationships among the staff. There should be separation of Finance Wing from the

Engineering Wing. Finance Wing should give liberty to take the decision in their favor.

Management has to take the strategic decisions, the clear and institutionalized

arrangements.

Finance Wing Structure

Page | 40


SEVP (FINANCE)

EVP (Finance)

EVP(Revenue)

EVP (Accounts)

GM (Finance) GM (Revenue)

GM (Accounts)

Director (Finance)

General Manager of the Region. He will report to the SEVP (OPS) as well as any officer designated by



NUMBER OF EMPLOYEES IN FINANCE SECTION

There are about 15987(2006-2007) employees are working in the PTCL, which are being divided

into categorically here under

Division of Employees according to their Status

Regular Daily wager Through T.F Contract *Ad-hoc12452 1725 956 854 NIL

* There is no any employee in PTCL on Ad-hoc basis. This system of recruitment has since been

changed into contract basis.

FINANCE & ACCOUNTING SYSTEM OF PTCL

Page | 41


Director (Revenue)

Director (Accounts)


INTERNSHIP REPORT ON PTCL The PTCL FINANCE & ACCOUNTING system is actually divided into three wings.

1- FINANCE

2- ACCOUNTS

3- REVENUE

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.

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 so correlated 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.

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 assist to implement and control the inflow of Revenue and Reconcile it with the PTCL

Headquarters Islamabad.

Page | 42




The PTCL is actually the Revenue Generation organization. PTCL Collect the Revenue

from the following modes.

Revenue from System Billing of Land Line Numbers.

a) Through Line Rent of Land Line Numbers.

b) Through National wide dialing from LLNs (Land Line Numbers)

c) International dialing from LLNs

d) Providing Value Added services to customers. Like UAN (Universal Access

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

Network) Bandwidth of ISPS (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.

f)

ACCOUNTING SYSTEM 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.

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

Page | 43




g. Revenue from Mobile Phone Operators

h. Co-location charges from various companies

REVENUE FROM OTHER

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

CAPITAL EXPENDITURES

INSTALLATION OF NEW EXCHANGES

Expenses of installation of new Exchanges are the major capital expense of PTCL because

PTCL purchases the new telephone exchanges from France, Italy, Germany and China. So

heavy cost is to be paid for purchasing process in order to proper margin. Each exchange

having different capacity and due which each Engineer should has to be trained accordingly

so expenses rises on purchasing of new Telephone Exchanges. This is the main expense of

PTCL.

EXTENSION OF EXISTING EXCHANGES

The extension of the existing exchanges is the dire need as the density of the population is

increasing day by day and in order to fulfill the basic communication and fill the communication

gap PTCL has to extend its normal Telephone Exchanges in accordance with the demand and per

paid connection. So PTCL sustain heavy expenses on the extension of exchanges.

Page | 44




MINOR EXPENDITURES

INTERNAL AUDIT AND TECHNICAL INSPECTION

The PTCL has sustained huge amount in context of internal audit both Accounts and Technical

from various agencies. For example M/s Ferguson conduct both internal audit and external audit

and payment made to auditors in the expenses of the company.

ADMINISTRATION AND CONTROL EXPENSES

Some time in the best interest of company, some expenses could be occurred for example if there

is need of induction of a financial analyst in one region or if there is need of an Engineer then

transfer and posting order can be issued and traveling and training expenses could be realized to

employees.

SALARIES OF STAFF

The monthly salary of the staff is rest with the approval of PTCL H.Q Islamabad. PTCL is

spending lot of amount on the salaries.

.

FINANCE SYSTEM OF PTCLPage | 45




PTCL has magnificent finance structure; it is basically Product Oriented organization so

here, the Revenue is the Life Blood as such for any other profit seeking organization. So we

should have isolated the Revenue from Finance side or either we should consider the Finance in

the context of Revenue.

Finance activities can be evaluated in terms of PTCLs basic financial statements

analyzing through

Finance planning

On PTCL HQ Islamabad, SEVP (Finance) is, who with the concurrence with the CEO for

making all the Finance Planning thats way the PTCL has to inject the money in order to boost up

the business and in order to complete the stiff competition faced in the telecomm sector. Before

taking any decision regarding financial planning the draft could be presented before the Board of

Governors. In this section there is need of financing either in the WLL (wireless local loop) sector

or wire-line or mobile operator services.

Managing the PTCLs Asset structure

Page | 46




PTC is very organized organization and it has also its fixed as well with the current asset.

So there are many experts in order to keep the eye watch on the PTCL infrastructure, for example

Director (Fixed Assets) is responsible for the maintenance and repair of the building and

machinery on the Regional level.

Managing the PTCLs financial structure

PTCL financial structure is in the safe hands the basic qualification for the post of

Assistant Accounts Officer is MBA (Finance) and for the SEVP (Finance) the incumbent should

possess the degree of MBA with ACMA & CA. Due to such fresh blood the young and energetic

financial management taking some bold decision the results of which are awaited up till.

FUNDING OF PTCL

Page | 47



INTERNSHIP REPORT ON PTCL MOBILIZATION OF FUNDS

PTCL mobilized its funds with following ways.

1) Purchase the new imported infrastructure like new Exchanges etc

PTCL mobilized its finds mostly in the purchase of new telephone exchanges from

abroad (France, Italy & China). There is also purchase of accessories of telephone

exchange generators and other equipments.

2) Capital expenditure for the organization.

There are various expenses for the PTCL in the context of capital expenditure that has

already been mentioned in previous pages.

3) Purchase and acquisition of stores.

PTCL store items are very important components i.e Stationery, stand-by Exchanges,

generators, barites and other equipments. PTCL spend lot of funds on these items.

4) Loan and advances to others, and re-investment.

There are offering of Loan and advances to the employees on various rates according

to the length of services on roll. This is the main source of mobilization of funds.

5) Payment of dividend to the stockholders.

Payment made to the shareholders in the context of dividend to be paid to the

shareholders. PTCL has currently announced the divided of Rs.32/per share.

6) Salaries of the staff all over the country.

Obviously services rendered by the staff and in this way PTCL has to pay handsome

amount to their staff, those are the main source of generating the revenue.

7) Annual Bonus to employees.

PTCL pays annual Bonus of Rs. 12000/- to its employees on the Eid occasion.

8) Security deposits, Transfer of Companys Land & Building.

Page | 48




Where PTCL does not find any building or land then security deposit may be paid to

the private landholders for the installation of PTCL infrastructure.

9) Insurance of the Company

PTCL offers the insurance from its own side in case of death and medically unfit of its

employees.

10) Pension, graduate, and other fringe benefits.

For the pension and gratuity of the retire official PTCL mobilized its funds

accordingly.

11) Supply of Furniture and Fixtures to the office buildings.

This is the responsibility of the Management to be provided the furniture and fixture

to the office buildings accordingly.

12) Renovation, alteration, and rental charges of privately owned buildings.

PTCL has to pay the handsome amount for renovation and alteration of existing

building and the charges of privately owned builders are being issued accordingly.

GENERATION OF FUNDS

1. Amount Realized from System Billing.

2. Amount Realized from defaulters.

3. Revenue from Value-added Services.

4. Bandwidth facilities provided to the companies.

5. Earning from DXX, PSTN, PABX, VPN, PRI & ISD.

6. Media used by cellular and pay-card companies and earn royalty.Page | 49



INTERNSHIP REPORT ON PTCL 7. Earning from subsidiaries PTML, PAKNET & TF.

8. Amount realized through co-location charges.

9. Basic Rate Interface provided to the subscriber.

10. International dialing customers.

11. Corporate Billing customers, valued customers.

12. Earning from MTR mobile Termination Rate.

13. Earning from Incoming Overseas Calls in shape of premium from overseas

Page | 50




SOURCES OF FUNDS OF PTCL

Cash generated from operations

In this context we can say that PTCL usual earning lot much more depends upon the usual

earning from Telephone number and payments of the bill thereof, this is the primary source of

funds of PTCL.

Security deposits

Various pay card companies like Dancom, World call, Pearl Tel, Soft tech, deposited huge

amount as the securing deposit in the books of PTCL for the media that is being used by these

companies. PTCL is utilizing these security deposits.

Return on deposits

After payment the dividend to the share holders and having paid the income tax on the

profit the surplus amount is being used in the deposits of various national and multinational banks

from where ROD is received accordingly.

Dividend Income

PTCL some time itself purchases the share from the open market and earn the dividend income

thereof. It is also possibly that PTCL if applicable may detain the shares of different other

companies and earn the dividend.

Page | 51



INTERNSHIP REPORT ON PTCL Sale proceeds of fixed assets

The defunct and dismantle Telephone exchanges not allowed re-sell to the other underdeveloped

countries and gain profit. PTCL is also not in the process of planning to be used the idle land,

which could be used on commercial basis by other parties.

Long- Term Investment

There are various long-term project of PTCL. BLT is one of them. PTCL is now expanding its

business through the United Arab Emirates by consortium and through the joint venture with

other telecom operators. PTCL has also some long-term investment in the AT&T (American

Telephone & Telegraph) and ZTE (Zehwing Telecom Engineering Company China).

Long-Term Loan to others

PTCL has also offered long term loan agreement to other Telecom provider companies. PTCL is

providing its expertise and Engineers to them and also offering amount to be invested on behalf

of PTCL for example PTML Pakistan Telecom Mobile Limited and Paknet the Internet providers

company.

Loans, advances, deposits, prepayments and other receivable

In this context all the referred point and return thereof will be called the receivable.

Page | 52



INTERNSHIP REPORT ON PTCL ALLOCATION OF FUNDS

Against all purchase orders issued by the PTCL H/Qs Islamabad payment made after

allocation of Funds which further allocated by the Regional offices. The funds usually allocate in

order to manage the following: -

14. Capital expenditure

15. Purchase of infrastructure like new exchanges.

16. Launching of new Product.

17. Human resource development

18. Transportation expenses, misc expenses

19. Domestic and overseas training of staff

20. Bonus to the employees, house/building advances, motor car/motor cycle advances.

21. Worker compensation fund, benevolent fund contribution general provident fund

22. Maintenance of buildings, vehicles, fixed assets.

23. Default situation of subsidiaries.

Allocation of Funds for Marketing exploration 19% of net profit

Allocation of Funds for Research & development 18% of net profit

Allocation of Funds for Human resources & Admn 33% of net profit

Allocation of Funds for Corporate affairs 30% of net profit

Page | 53



INTERNSHIP REPORT ON PTCL Department worked during internship and specific/leading

contribution made.

In the beginning they gave me a brief introduction of all the aspects related to their field

of business, their products, changes in products. A general overview of PTCL was given in other

words. Moreover, I learned how things work in a practical environment, challenges and problems

faced as I have mentioned.

More specifically the project assigned to me during the internship was the sales analysis

of PTCL-V Services Packages, a product of PTCL. The major department in which I did

internship was Interconnection Revenue Department. The prices of the PTCL-V devices were

reduced during the period which had a positive impact on sales. I was assigned the task of

analyzing the impact of change in these prices on the overall income and other service packages of

PTCL-V.

PTCL V- fone (WLL Ser vice) was a major area of focus for PTCL during the year. A

few prominent measures taken in this area during the year were launching of free home

delivery service. No line rent package was launched in June 2010. In June 2008, 30 seconds billing

was introduced contributing as an effective customer retention tool. PTCL has expanded the

network to provide coverage in all large and small cities including over 10,000 villages in rural

areas of Pakistan.

Problems Identified

PTCL is a well organized company and operates efficiently in this competitive environment so it Page | 54



INTERNSHIP REPORT ON PTCL was difficult for me to identify the problem. But nothing is perfect in this world there is always a

room for improvement. According to my limited knowledge following were the problems and

challenges that can directly affect the efficiency and performance of the bank or in other words

improvement need be made in the following areas:

There is a lack of balance in incentives given to old and new employees. New employees

are paid more which de- motivates the old ones.

Lack of proper computer skills in old employees is another problem.

System problems do arise at times and customers have to wait for the system to

work properly.

Some employees misuse the resources of the company.

Employees were not very effective in communication among themselves. They

didnt share the experience with each other and didnt care about the other

employees. Some employees lacked the trust in management.

Ineffective public dealing was another major problem which I experienced during

my internship. y Regularity and punctuality shows the character of big and good

executives. But this problem is also faced by the overconfident employees.

Financial Analysis

Page | 55




Page | 56




Page | 57




Operating Highlights

Page | 58




Page | 59




Current Assets

Current Liabilities

Its shows the firms ability to covers it current liabilities with it current assets.

Ratio for 2005 = = 1.89

Ratio for 2006 = = 1.66

Ratio for 2007 = 53560840/24447741 = 2.19

Ratio for 2008 =39603406/21913959 = 1.8

Ratio for 2009 =54220241/36086322 = 1.5

INTERPRETATION

Current Ratio of PTCL was good last five year. In 2006 the current ratio

Better then the last year and upcoming years. The last three year slightly

Difference between each other. If PTCL increases the assets then current

Ratio of PTCL is better.

Page | 60


CURRENT RATIO



Cash & cash equivalent

Current liability

It is the ratio of cash and cash equivalents to current liabilities. It shows that how much cash available to cover the current liabilities.

Ratio for 2005= = %

Ratio for 2006 = = %

Ratio for 2007= = %

Ratio for 2008=4545145/21913959 =0.21%

Ratio for 2009=11906448/36086322 =0.32%

INTERPRETATION

In 2009 cash ratio is better then the last year

And 2008 the cash ratio is decreases then 2007 ratio and slight increases

2009.

Page | 61


Cash ratio

DEBT TO EQUITY RATIO



Total Debt

Total Equity

The Ratio shows extend to which the firm is financed by debt.

Ratio for 2005 = = 13:87

Ratio for 2006 = = 14:86

Ratio for 2007 = = 14:86

Ratio for 2008 = 13366216/75741890 = 15:85

Ratio for 2009 = 10760974 /56495113= 16:84

INTERPRETATION

This year is better then previous years.

CA - CL

It shows the net worth of the bank.

Ratio for 2005 =

Ratio for 2006=

Ratio for 2007=53560840-24447741= 29113099

Ratio for 2008 =39603406-21913961 = 17689445

Ratio for 2009 =54220241 -36086322= 18133919

Page | 62


Working capital


INTERNSHIP REPORT ON PTCL INTERPRETATION

The net worth of the org is strong. Last five year the data shows positive

Answer .its mean that the current assets of the bank is more then the current

Liability

Net income

No of ordinary shares

This ratio tells that what the earning per share.

Ratio for 2005 = = 5.22

Ratio for 2006 = = 4.07

Ratio for 2007 = = 3.07

Ratio for 2008 = 14705300/3900000000 =(0.55)

Ratio for 2009 = 16206485/11100000000 =1.7

INTERPRETATION

MCB earning per share of five years is high difference. they are changes In the points.

Page | 63


NET PROFIT MARGIN RATIO

EARNING PER SHARE



NET INCOME

Sales

It is measure of the firm profitability of sale after taking account of all expense and income taxes.

Ratio for 2005 = =30.46%

Ratio for 2006 = =26.16%

Ratio for 2007 = = 22.01

Ratio for 2008 = =(4.26)%

Ratio for 2009 = =15.45%

INTERPRETATION

Net profit margin of PTCl has improved, during the current year tremendously. This signal towards higher efficiency and lower administrative cost of the ptcl.

Net Profit X 100

Page | 64


RETURN ON EQUITY RATIO



Total Equity

This ratio shows that residual profit as a proportion of the bank value of common shareholder equity.

Ratio for 2005 = = 25.45%

Ratio for 2006 = = 20.22 %

Ratio for 2007 = = 14.45%

Ratio for 2008 = =(2.71)%

Ratio for 2009 = =9.28%

INTERPRETATION

The ROE of PTCL has shown a mix trend. In the 2006 it decreased as compare to year 2005. The increase in ROE is due to improvement in Net Profit Margin. the 2005 is better profit then next four year

Page | 65



INTERNSHIP REPORT ON PTCL Profitability Position

Liquidity Position

Page | 66




Leverage Position

Page | 67




Activity Positions

Dividends

final internship report

Documents