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Internship Report On: (Pakistan Telecommunication Company Limited)
Internship Report On: (Pakistan Telecommunication Company Limited)
INTERNSHIP REPORT ON
PTCL
Presented to:
Presented by:
Muhammad Ashraf Roll # 31-ss M. Com (2008-2010) Email: redeyes11@live.com
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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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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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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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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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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 12 18 18 19 23 28 32 32 34 37 37 38 41
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History of Organization
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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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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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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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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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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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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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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 valueadded 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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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
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.
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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 international o 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.
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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)
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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
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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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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.
PTCL Landline
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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).
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Privatization
The 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.
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Brand
While 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.
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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.
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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.
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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.
Organizational Structure
Board of Directors
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Corporate Information
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Registered Office
PTCL Headquarters,
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Auditors
A.F. Ferguson & Co.
Chartered Accountants Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants
Share Registrar
M/S FAMCO Associates (Pvt.) Limited Ground Floor, State Life Building 1-A I . I Chundrigar Road Karachi 74000 Tel: +92-21-2422344, 2467406
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EVP (Finance)
EVP(Revenue )
EVP (Accounts)
GM (Finance)
GM (Revenue)
GM (Accounts)
Director (Finance)
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General Manager of the Region. He will report to the SEVP (OPS) as well as any officer designated by
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There are about 15987(2006-2007) employees are working in the PTCL, which are being divided into categorically here under
Regular 12452
Contract 854
*Ad-hoc NIL
* There is no any employee in PTCL on Ad-hoc basis. This system of recruitment has since been changed into contract basis.
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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.
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Revenue from System Billing of Land Line Numbers. a) b) c) d) Through Line Rent of Land Line Numbers. Through National wide dialing from LLNs (Land Line Numbers) International dialing from LLNs 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
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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 Allocation of Funds for Research & development Allocation of Funds for Human resources & Admn Allocation of Funds for Corporate affairs
19% of net profit 18% of net profit 33% of net profit 30% of net profit
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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
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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.
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
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Operating Highlights
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CURRENT RATIO
Its shows the firms ability to covers it current liabilities with it current assets.
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.
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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 Ratio for 2009=11906448/36086322 =% =% =% =0.21% =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.
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Total Debt Total Equity The Ratio shows extend to which the firm is financed by debt.
= 13:87
= 14:86 = 14:86
Ratio for 2008 = 13366216/75741890 = 15:85 Ratio for 2009 = 10760974 /56495113= 16:84 INTERPRETATION This year is better then previous years.
Working capital
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 = Ratio for 2009 =54220241 -36086322= 17689445 18133919 Page | 62
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Net income No of ordinary shares This ratio tells that what the earning per share. Ratio for 2005 = Ratio for 2006 = Ratio for 2007 = = 5.22 = 4.07 = 3.07
Ratio for 2008 = 14705300/3900000000 =(0.55) Ratio for 2009 = 16206485/11100000000 INTERPRETATION MCB earning per share of five years is high difference. they are changes In the points. =1.7
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Ratio for 2005 = Ratio for 2006 = Ratio for 2007 = Ratio for 2008 = Ratio for 2009 =
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
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Ratio for 2005 = Ratio for 2006 = Ratio for 2007 = Ratio for 2008 = Ratio for 2009 = 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
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Profitability Position
Liquidity Position
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Leverage Position
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Activity Positions
Dividends
SWOT Analysis
STRENGTHS
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PTCL (Ufone) is market challenger in GSM segment. Ufone is performing well though Warid, Telennor, Mobilink and Zong are tough competitor. PTCL , Ufons profitability increased by 49.2 percent to Rs 977 million in 1H/FY07 as compared to rsRs655 million in the corresponding period last. Competitors still dpend on PTCL network either directly or indirectly. Experienced Telecom Recourses.
Weaknesses
Not been able to nurture its growth around customer services oriented strategy. Internal organizational and business issues.
Monopolistic culture has further added to complexities.
Paknet, the internet service provider arm of PTCL customers to incur losses due to poor management and lack of network optimization. Ptcl-v, the fixed wireless phone service is poor. Over employment & low productivity. Slow decision making including external interferences.
Corporate culture akin to Government department.
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Threats
increased competition in long distance counties to exert pressure. VOIP use is increasing despite ambiguous and discriminatory policies. Exposure to market competition. Migration to cellular network.
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MAIN OFFICES
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1. Southern Telecom Region-I, Hyderabad 2. Southern Telecom Region-II Karachi (STR-II) 3. Southern Telecom Region-III Karachi (STR-III) 4. Lahore Telecom Region (South) , Lahore 5. Lahore Telecom Region (North) Lahore 6. Central Telecom Region (C.T.R) Lahore 7. Faisalabad Telecom Region (FTR) Faisalabad 8. Rawalpindi Telecom Region (RTR) Rawalpindi 9. Hazara Telecom Region, Abbottabad 10.North Telecom Region (NTR-II) Peshawar 11.Western Telecom Region (WTR) QUETTA 12.Multan Telecom Region (MTR) MULTAN
Conclusion
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PTCL has laid an Optical Fibre Access Network in the major metropolitan centres of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network On the Long Distance and International infrastructure side, the capacity of two SEA-MEWE submarine cable is being expanded to meet the increasing demand of International traffic. 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. In 1994, the PTC 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
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The image of PTCL being leading Telecom Providing is not good in the eyes of common customer especially there are lot of complaints about the including the bogus local calls in the
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PTCL needs innovative service offerings currently it doesnt even offer bundles or a single bill.
Has been unclear about its IPTV and WiMAX plan and strategy (trials are in progress) Overall PTCL still behaves as a monopoly it has to change its attitude. At a minimum, avoiding billing errors and providing competent and courteous service to its customers is essential if PTCL wants to show that it is transforming itself to a competitive company which cares for its customers. It is said that the best assets of a company go home to their family in the evening. Can the culture of PTCL be changed to a performance and service-based organization? According to the latest directors report from PTCL the organization is being revamped. Only time can tell the impact. However management is very demanding about the targets but good reward at the achievement of assigned targets is awarded.
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No doubt P.T.C.L having the monopoly in providing the Land-Line Telephone Connection in Pakistan and its playing its role magnificently. In current scenario P.T.C.L has increases its Revenue quite dramatically, and probably that as soon as this organization has become privatized it will flourish its revenue in better manner.
PTCL should immediately change its Finance upper level of hierarchy and should stream line in the good manner.
PTCL should also encourage the Billing On line system that each and every customer should have to pay his/her bill on line basis.
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The system of E-PAYMENT which although exist in PTCL finance system but there is need of improvement this facility.
The image of PTCL being leading Telecom Providing is not good in the eyes of common customer especially there are lot of complaints about the including the bogus local calls in the monthly bills of various customers. PTCL should also provide the detail of local calls made from any Land Line Number which would be provided in Micro level to the customer.
Faulty Telephone connection should be Fault Free within 24 hours in order to maximize the Revenue, as Revenue of PTCL should sacrifice at the cost of Faulty Telephone.
The punching system of Billing through automation at CITI Bank Karachi takes so much time to adjust so it should be revived.
The Financial D.D.O powers should be entrusted to the Director Finance rather GM.
PTCL is not utilizing its surplus profit in long-term investment projects which be done.
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The promotion system in the Finance & Revenue wing should be revived in true manner all promotion must be made strictly on merit.
Each Region should maintain Profit & Loss and Balance sheet and the statement of Cash inflow and outflow.
Limitations
Organizations dont provide their data. They keep secracy fron internee. All the data to prepare this report I have collected my self from different sources.
Bibliography
1. www.ptcl.com.pk
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6. Magazine Business Economy 7. Google.com 8. Economic Survey of Pakistan 9. Businessrecorder.com 10. Security and Exchange Commission of Pakistan 11. Kse.com 12. Yahoofinance.com
Reports
Annual Report PTCL 2007, 08 PTA Reports
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