Internship Report: CAA Pakistan

Internship Report: CAA Pakistan

Submitted by:

Miss Anum Khan Miss Maliha Khan

Submitted to:

Sir Ziaull Hassan (CM Finance Coordination) 09th July 2009

Date of submission:

Internship Report: CAA Pakistan

SR.# 1. 2. 3. 4. 5. 6. 7. 8. 8a 9. 9a 10. 10a. 11. 11a. 12. 12a 13. 14. Index Corporate information CAA board member profile CAA vision mission and core values Future plans Recent achievements Dedication Acknowledgment Chapter # 1 Introduction Chapter # 2 Historical background of CAA Chapter # 3 About CAA Chapter # 4 About finance department Chapter # 5 Weekly overview about departments Special thanks Bibliography Page #

Internship Report: CAA Pakistan


➢ ➢ ➢

➢ ➢ ➢ ➢

Lt. Gen.(Retd) Syed Athar Ali : ( secretary defence/Chairman CAA Board) Air Marshal Hifazat ullah Khan HI(M), S.Bt: ( Vice Chief of Air Staff/ Member CAA Board) Mr. Ashraf M,Hayat: (Secretary Planning and development Division/Member CAA Board) Maj.Gen.Mir Haider Ali Khan HI(M) : (Additional secretary Ministry of Defence/CAA Board) Mr.Sarshar Ahmad Khan:(Additional Secretary Military Finance/Member CAA Board) Air Cdre (Retd) M.Junaid Ameen: (Director General CAA/Member CAA Board) Capt.Mohammad Aijaz Haroon: (Managing Director PIAC / Member CAA Board) Mian Muhammad Mansha: (Chairman MCB bank Ltd/Member CAA board) Mr. Munnawar Hammid OBE: (chairman BOC Pakistan Ltd and Silk Bank Ltd (formerly Saudi Pak Commercial Bank Ltd)/ Member CAA Board) Mr.Qasim Rabbani: ( Director Invest Cap Bank /Member CAA Board) Syed Saleem Ahmed Zaidi: (Chief Executive, Glamour Int’I (Pvt) Ltd/Member CAA Board) Mr. Khurshid Anwar: (Chief Executive Officer / Secretary CAA Board)

Internship Report: CAA Pakistan

CAA VISSION Be a world-class service provider in the aviation industry”. CAA MISSION “Provide safe, secure and efficient best-in-class aviation services to the stakeholders”. CORE VALUES
Commitment Professional Excellence Customer Focus Safety and Security Integrity
Internship Report: CAA Pakistan


Internship Report: CAA Pakistan

Internship Report: CAA Pakistan


Internship Report: CAA Pakistan

Internship Report: CAA Pakistan

Executive Summary
The mandatory internship in BS (COMMERCE) program is very beneficial to have practical exposure of how things really go in business world. Being a student who wants to make a mark in the field of commerce, the best place to gain practical understanding of commerce was to do internship in the Finance Department of Civil Aviation Authority Pakistan which can be regarded as one of the most dynamic authority currently in Pakistan. We took the internship in CAA which stands as a prominent name in Pakistan. We are proud to work as an internee with CAA and this experience will surely help us in our future assignments as a Finance professional. The absolute guidance and concern of higher management, perfect working environment with immense cooperation of the staff of all departments especially the Revenue department facilitated in making my internship a wonderful learning experience in all aspect. The internship duration was of four weeks 12th June 2009 to 9th July 2009, though we were able to get direct interaction with the staff of finance. Through this internship we were able to meet and interact with different vendors and people. The entire tenure of my internship was very informative & learning. All the employees cooperated with us which is very appreciated and provided us the sound information which was not only availed us in making report
Internship Report: CAA Pakistan

but also enhanced our knowledge, professional skills, managerial communication, communication skills, confidence & team work. In our 1week we were sent to budget department, Budget involves making of financial plan. Budget is always made on the basis of past data, for particular year if the budget is to make, say for example: purchasing of Machinery (Capital Expenditure), the need to be on past data relevant to machinery expense and then budget can be made, if there is any discrepancies, in particular year, between actual and budgeted the reason should be find out and must take appropriate action favorable to that circumstances. Our second week is concerned with the Revenue department, there was very friendly atmosphere they gave us opportunity to work with Revenue Department, in which we learned the procedures for accountability towards Income relevant to Head Quarters. Third week is concerned with accounts; we visit all the sections in accounts department. The work that was assigned to us was to drive Outstanding Balance of Parties (and of locations collectively).Against the Billing and Reconciliation of Monthly Rent Return with General Ledger and their Adjustment. Forth week is related to Disbursement; there we observe all the core activities perform by disbursement branch, functions or procedures of procurement. We also visited Payroll section and saw how they maintain their cash book and bank book.

Internship Report: CAA Pakistan

We dedicate this Report Book to Our beloved Parents and Staff of CAA For their guidance, moral Support And perseverance.

Internship Report: CAA Pakistan


irst of all we are thankful to Allah for

giving us the valor to remain dedicated to make this progress report. This underlying report is based on the analysis of different finance functions of CAA Pakistan. We present our gratitude to all the staff of Budgeting, Revenue, Accounts and last but not least Disbursement department. We hope the present efforts will live up through the Expectations of all who have
Internship Report: CAA Pakistan

invested time, Efforts and prayers in making it possible.

Thank You


Back Ground of Study
As part of the academic requirement for completing Bachelor of Commerce the students are required to under go 4 weeks of internship with any reputed organization. The internship is to serve the purpose of acquainting the students with practicing knowledge of the discipline of Commerce. This report is about Pakistan Civil Aviation Authority.

Purpose of the Study
Internship Report: CAA Pakistan

The main purpose of the study in hand is to gather relevant information to compile internship report on Pakistan Civil Aviation Authority. To observe, analyze and interpret the relevant data competently and in a useful manner. ➢ To know how to practically work in an organization. ➢ To develop interpersonal communication.

Scope of Study
As an internee in CAA the main focus of our internship was on Finance Department. We included all the concerned sections in which we learned how to make different types of reports and we were given different responsibilities for certain durations. Wehave written about these in Finance Sections Chapter.

Methodology of Study
The report is based on our 4 weeks internship program in CAA .The methodology reported for collection of data is primary as well as secondary data. The primary source of information is our personal observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped us in this regards In Finance.

Primary Data:
➢ Personal observation ➢ Interviews of staff
Internship Report: CAA Pakistan

➢ Lectures by Finance Staff ➢ Practical work

Secondary Data:
Annual Reports 2006, 2007 and 2008. ➢ Newspapers. ➢ Finance Manuals. ➢ Internet(,


The Civil Aviation Authority was created in December 1982 to handle all matters related to Civil Aviation in Pakistan. In order to keep up
Internship Report: CAA Pakistan

with the rapid advancement in the field of aviation, it was felt that an autonomous body was required to bring the country's aviation infrastructure and facilities at par with international standards.

The CAA not only serves as a regulatory body on behalf of the Government of Pakistan, its functions include provision of services such as facilitation, air space management, Air Traffic Control and Fire Fighting Services. The Authority is also responsible for the planning, development and maintenance of all civil aviation infrastructures in the country. For the fulfillment of its function as a regulatory body, the CAA ensures conformity to the standards laid down by the International Civil Aviation Organization (ICAO), regard to flight safety, aircraft maintenance and medical fitness of pilots, air traffic controllers and engineers. It is also responsible for negotiating of air services agreements with other countries. The functions of CAA are carried out by professionals, through various Directorates at the Headquarters, assisted by five Zonal offices, Jinnah International Airport, Karachi, and the Civil Aviation Training Institute (CATI) in Hyderabad. The Directorates at the headquarters include Personnel Licensing Office, Flight Standards, Airworthiness, Air transport, Legal and Accident Investigation Board


The Civil Aviation headquarters are located in Karachi. The Director General is the head and the Deputy Director General is next in line. The airports are managed by Airport Managers and their deputies. Terminal Managers and their deputies are also involved in airport management. Moreover, managers for Passenger Protocol, Porter Facility and Janitorial handle their departments.

Internship Report: CAA Pakistan


Since, and the Aeronautical communication and control project providing total radar coverage to Pakistan's air space, is testament to CAA's commitment Pakistan. The number of airports has risen to 42 from 23 in 1982. Besides new airports, 11 new terminal buildings, 3 new runways, and two new Hajj lounges were constructed by the CAA, in addition to the maintenance, extension and renovation of existing lounges. Karachi's prestigious to bring Pakistan's aviationrelated facilities up to par with the best in the world. its inception, the CAA has endeavored to improve the aviation facilities in Jinnah Terminal Complex and the Aeronautical communication and control project providing total radar coverage to Pakistan's air space, are the best in the world. Testament to CAA's commitment to bring Pakistan's aviation-related facilities up to par with the best in the world.

Internship Report: CAA Pakistan


Pakistan Civil Aviation Authority is a Public sector autonomous body working under the Federal Government of Pakistan through the Ministry of Defense. It was established on 7th December, 1982 as an autonomous body. Prior to its creation, a Civil Aviation Department in the Ministry of Defense used to manage the civil aviation related activities. The day of 7th December has significance, as it coincides with the date of creation of International Civil Aviation Organization (ICAO) in 1944 as a result of the famous Chicago Convention. Incidentally, the United Nations have declared 7th December as the International Civil Aviation day and celebrated as such every year all over the World. All kinds of Civil Aviation related activities are performed by CAA including the regulatory, air traffic services, airport management, infrastructure and commercial development at the airports, etc. Recently, Civil Aviation Authority underwent Restructuring and Change Management process to meet the present and future challenges. This organizational transformation process identified Structure, Culture, Skills, and Rewards as four tracks on which simultaneous emphasis is being laid. The Vision, Mission, and Core Values have been identified. Wide-angle buy-in process by CAA senior management with staff and lower levels for bridging communication gaps between different hierarchical levels of the
Internship Report: CAA Pakistan

organization has been taken. As a result of the Restructuring process, the fundamental organization structure has been balanced to focus on three core areas namely Regulatory, Air Navigations Services, and Airport Services. These Core / Line functions are fully supported by the various Corporate functions of the organization. The restructuring process has helped Pakistan Civil Aviation Authority to fully focus on Strengthening its safety and security oversight role as per International Civil Aviation Organization requirements and standards. To facilitate growth of the infrastructure development (Airports and Airport Cities) on a fast-track basis. Private sector participation in the process is also being encouraged. Enhanced Regulatory and air space management capabilities. Moreover, emphasis is being laid on commercialization of its assets and land with improved customer / passenger service standards, benchmarked with top performing international airports Development of a New Aviation Policy for the country in consultation with the Ministry of Defense, Planning Commission, World Bank, Airlines, and Aviation Experts (Expected to be considered by the Cabinet for approval shortly). Investing in Human resource development through structured approach with particular focus on quality of people and enhancing their professional capability. Quality work on new initiatives is in progress such as introduction of Enterprise Resource Planning (ERP), Health, Security, Safety, and Environment (HSSE), Corporate Social Responsibility (CSR), Ethics Management Program, Customer feedback mechanism at the airports, Employees performance management system bench marking, outsourcing of non-core and wasteful activities, etc. Recently, we have embarked upon a challenging phased program to acquire international standards of Integrated Management System (IMS) in CAA during which the international standards of ISO 9001:2000
Internship Report: CAA Pakistan

(Quality Management System), ISO 14001:2004 (Environmental Management System), and OHSAS 18001:2007 (Occupational Health and Safety Management System) shall be acquired.


Finance department is one of the biggest departments in CAA, which is responsible for provision of efficient and effective accounting/budget. The feasibility of extending financial, administrative, technical facilities is control by this department. It is also responsible for internal auditor of CAA. It has further divisions, which are as under: ➢ ➢ ➢ ➢ Budget Revenue Disbursement Accounting

The duties and functions of a typical finance department can be classified into two generic categories. The first category is PLANNING and the second function is CONTROLLING. These activities are inter-related and inseparable because if there is no planning these will not be any control. Therefore, planning and control move together.
Internship Report: CAA Pakistan

Planning refers to the activities, which bridge the gap from the starting point to the terminal point. Planning in the finance department under review refers to the activities of Cash Flow and Budget preparation. These are the major activities (planning) in any such department.


Revenue Department
Revenue department deals with two main basic functions: ➢ Aeronautical revenue ➢ Non-aeronautical revenue

Following are the functions of aeronautical revenue 1. Landing and housing fee
Internship Report: CAA Pakistan

2. 3. 4.

Aircraft power supply Route navigation fee CIP lounge income

Rent electricity & water charges

Following are the administration expenses ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Salaries allowance and benefits Traveling and conveyance Training Telephone Electricity Rent rates Audit fee Horticulture CIP lounge And others


✔ ✔ ✔ ✔

Building Plant and equipment Vehicle Airplanes calibration Furniture and fixture Other fixed assets

Internship Report: CAA Pakistan

FINANCIAL CHARGES • Interest and related charges on long term loans
• Exchange loss • Bank charges

The function of revenue in CAA is to take the collection and invest it to the banks that have A+ rating and higher bid. The investment should be made according to the paid up capital the bank i.e. the PC must be 50% more than the investment. We observe that revenue department maintains the following files: ✔ ✔ ✔ ✔

Investments with banks Security refund Transfer of funds Inter bank transfer Bank guarantee

Budget Department
The budget is not only the most important plan of an enterprise, but also the basic link of accounting with management. The use of budgets, particularly
Internship Report: CAA Pakistan

in connection with the control phase of management has been termed as “budgetary control”. A company’s organization chart and its chart of accounts from the basic framework on which to build a coordinated and efficient system of managerial planning and budgetary control. The organization chart defines the functional responsibilities for the budgets rests with executive management; all managers are, responsible for the preparation and execution of their departmental budgets. If a budgetary control system is to be successful, these managers must fully cooperate and must understand their role in making the budget system successful. We learn while spending one week in budgeting department that they prepare budget for over all locations, send inputs forms to the locations than the locations fill those forms asking for how much money they want and why they want. Than the budget department fulfill the requirement of the location after checking all the conditions.

Accounts Department
Accounts branch is an integral part of finance directorate and plays vital role in its working. Accounts branch is mainly responsible for processing financial information which includes collecting financial information from all online locations enter, verify and post data from returns on daily basis where as accounts branch performs verification, posting and validation of data from monthly returns received from offline locations. The data from all sources in then compiled for the preparation of financial statements on quarterly, half yearly and on annual basis, which is prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such international financial reporting standards (IFRS) issued by the international accounting standards board as are notified under the companies ordinance, 1984 and also the provisions of Pakistan civil aviation authority ordinance 1982.
Internship Report: CAA Pakistan

Accounts branch is sub divided into following sections which included: ✔ Revenue accounting ✔ Disbursement Accounting ✔ Fix Assets ✔ Development

Disbursement Department
Disbursement means “To Distribute”, so the disbursement branch deals with the procedure for making payments to employees of salary Allowances and other benefits. Following is the list of procedure: ➢ Payroll payments ➢ Payroll adjustment ➢ Casual workers It also deals with the procurement procedure which is to be made through the administration branch. The administration branch deals with the procurement of furniture and furnishing, medical store, R/M service contracts and the purchase of stationary for the Authority. Following Core activities perform by disbursement branch: Disbursement branch: 1) Financial concurrence 2) Issue of policies/procedure regarding Disbursement, Funds Salaries/Allowances. 3) Payment of bills/invoices. 4) Record of disbursement & returns. 5) Remittances
Internship Report: CAA Pakistan

6) Salary/GP Fund & Pension payment.

In our four weeks internship program we observe that the flow of work is very professional and up to date and atmosphere is very friendly and there is no difference between officers and staff. Everybody is so corporative and helpful. During our time at the CAA, we were involved in a lot of different tasks of office work. Our internship at the CAA was an outstanding experience. We got a deep and inspiring insight in the work of CAA Pakistan, but as well as the other friendly and cooperative staff members took a lot of effort to make it a helpful visit for us in every way.

SPECIAL THANK ➢ Sir Ather (Accountant Revenue)
➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ Sir Ilyaas (Senior Accountant Revenue) Ma’am Rashida Syed (CM Finance) Sir Naseer (Budget) Sir Imtiyas (Budget) Sir Akhlaq Ahmed (DM Accounts) Arshad Ali (DM Revenue) Sir Junaid Siddique (Accountant) Sir Afzal Khokher (Accountant) Sir Shuja-ur-Rehman (DM Disbursement) Sir Akhlaq Ahmed khan (AM Disbursement)

➢ Sir Saif Ullah (CM Revenue)

Internship Report: CAA Pakistan


1. 2. 3. Annual report of CAAPAKISTAN 2008. 4. An internship Report by MR Memon


Internship Report: CAA Pakistan

Sign up to vote on this title
UsefulNot useful