Warid Internship Report

WARID TELECOM PRIVATE LIMITED
SUBMITTED TO
DR. LIAQAT ALI

(PRINCIPAL HAILEY COLLEGE OF COMMERCE) BY
WAJEEH-UR-REHMAN
ROLL # 923 SECTION: D(AFTERNOON)
HAILEY COLLEGE OF COMMERCE
UNIVERSITY OF THE PUNJAB
Internship Report : Warid Telecom
LETTER OF TRA S
TTAL
Dr. Liaqat Ali, (Principal) Hailey College of Commerce, University of the Punjab, Lahore.
Dear Sir, It is a great honour for me to present you the internship report as required for the completion of B.com (hons) degree programme. The staff of the Warid Telecom has been very Co operative with me in providing information regarding the procedures and processes in practice. Due to certain constraints and legal formalities, I have not been able to gather all the facts and figures about the organization. Yet, the report is a comprehensive one, containing a lot of information. The practical work during the internship period has been are working and enlight ening experience.
Yours truly,
Wajeeh-ur-Rehman 8th Semester
Inte ns
Re
t : Warid Te ec
All i m wi m li
i k i
All wl d k.
, ,
m m
i l
,w l d ll w d m y Mild
May Hi Mercy and Peace Be U empered L rd, t e S
n all Hi
essengers incl ding
ereign f scared) Madina,
rought the last and
final message from Him to a mankind.
I am especially indebted to all my teachers for instilling in me enough knowledge to be able to carry myself efficiently during my internship. Secondly, I am bound to thank all the staff of arid elecom, especially Mr.Zahid Manzoor(manager radefinance) , Mr.Kashif Rehman (A.M reasury),Mr.Saim Ahmad ( AM. Budgeting and cost control), Mr. ahir Matloob (Finance) ,Mr. ouqeer Zafar (senior Financial Analyst).In particular their inspiring guidance, remarkable suggestions, constant encouragement, keen interest, constructi e criticism and friendly discussion help me to learn and enabled me to complete this report efficiently.
Im also really thankful to my parents & my family, who are my first teacher in this world
Executive Summary
Internship was my first step in practical life, through which I learnt a lot and it has aided me in being well equipped with valuable experience that would help me once I enter the professional life after the completion of my studies. Internship offered to me was of 4 weeks in finance department which was later extended to 6 weeks so i can complete my project of budgeting reconciliation. During the month of Aug and Sep 2010, I worked in Warid Telecom as an internee. My association with this company was being a part of the Finance Department. It was a great experience for me and it helped me in realizing where my potential lies. What I learnt at Warid Telecom over the weeks was how to get along with the people that I have to work with everyday, building confidence and improving my skills. I tried to remain to the point, in writing the report. Brief history, management, organizational structure of Warid Telecom and my work at EFU Building, Head Office Jail road Lahore. Suggestions for improvement/Recommendations 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 financial activities. I have made all possible efforts to summaries the broad history and working of the organization. This work is a collection of my observations and experience during the internship period and afterward This internship has also prepared me for my future career in Finance so this internship has helped me a great deal. The experience has taught me responsibility, teamwork and how to handle problems occurring. Even though the nature of work was quite basic as an internee, nevertheless I got to see what practical life is. This internship overall has been a great experience. This report gives a profile of Warid Telecom and an insight into the Finance department where I was assigned to work. This report also reflects my learning and experiences at Warid Telecom along with my responsibilities and the tasks that I performed. Last part of the report consists of some recommendations and suggestions that I have given.
Interns ip Report : Warid Te ecom

PREFA E
For the students of B.COM ( ons) the six weeks internship is a golden chance to develop and ensharp the capability and skill of administration and management in the practical environment of different organizations. In the context, I select Warid Telecom (Private imited Company). 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 WARID is to get firsthand knowledge about Finance activities and improve my business life, because Warid is one of the best organizations indeed. I tried to remain to the point, in writing the report. Brief history, management, organizational structure of Warid Telecom and my work at Efu building, head office jail road ahore. 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 financial activities. I have made all possible efforts to summaries the broad history and working of the organization. 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, and verbal discussion with staff members, senior students and my fellows. Internship Program is a conventional constituent is part of total spectrum of B.COM ( ons). The information contained in the report is based on my personal observation, practical working and interviews with the staff during my internship training. In the end, I would like to say that nothing is perfect in this world. Yet we must put all endeavours to reach near the line of perfection.

TABLE OF CONTENT
PAGE#
4-9
1. INTRODUCTION
1.1 1.2 1.3 1.4 HISTORY OF BUSINESS INTRODUCTION TO BUSINESS NATURE OF BUSINESS ABOUT WARID
2.
MISSION STATEMENT/OBJECTIVES
MISSION STATEMENT VISION CORPO RATE VALUES ORGANIZATIONAL BEHAVIOUR POLICES FINANCIAL OBJECTIVES 1) LONG TERM OBJECTIVES 2) SHOTRTERM OBJECTIVES
10-12
2.1 2.2 2.3 2.4 2.5 2.6
3. ORGINAZATIONAL STRUCTURE & STRATEGY

3.1 3.2 3.3 3.4 3.5 MESSAGE FROM THE CHAIRMEN BOARD MEMBERS & MANAGEMENT TEAM AFFINITY PARTNERS ORGANIZATIONAL CHART ORGANIZATIONAL DEPARTMENTALIZATION
13-23

4. WARID IN TELECOM MARKET

4.1 4.2 MARKET OVERVIEW WARID OFFERINGS 4.2.1 ZEM PREPAID 4.2.2 WARID POSTPAID 4.2.3 GLOW PRODUCTS AND SERVICES
24-39
4.3
5. LEARNING AS STUDENT INTERN IN WARID

5.1 5.2 5.3 5.4 5.5 MY WORKING IN DEPARTMENTS DUTIES PERFORMED ACCOMPLISHMENTS NEW KNOWLEDGE ACQUIRED HOW EXPERINACE IMPACT YOUR CAREER
40-58
6. FINANCIAL RATIO & ANALYSIS

6.1 6.2 RATIO ANALYSIS TREND ANALYSIS 6.2.1 HORIZONTAL ANALYIS 6.2.2 VERTICAL ANALYSIS FINANCIAL ANAL YSIS
59-88
6.3
7.
7.1
THEORIES IMPLEMENTATION
SWOT ANALYSIS
89-91
8. CONCLUSION AND RECOMMENDATIONS
92-94

9. APPENDIX
TRAINING COMPLETION CERTIFICATE LETTER OF AUTHORIZATION FINANCIAL STATEMENTS BALANCE SHEET STATEMENT OF COMREHENSIVE INCOME STATEMENT OF CASH FLOWS STATEMENT OF CHANGES IN OWNER EQUITY
BIBLIOGRAPHY

LIFE KA NETWORK
INTRODUCTION & B CKGROUND
HISTORY OF THE B SINESS

Cellular mobile Telecommunication services were introduced in Pakistan in 1990.six operators currently provide this service and their subscriber base as of December 2010. Paktel is regarded as the Founder of the Mobile Industry in Pakistan. Paktel was granted a license in 1990 to operate a cellular system across Pakistan and has improved its network capacity from time to time.

Warid Telecom launched in Pakistan on 23 rd May 2005 but its pre launch operations started working six months before the aunch this shows the planning masters took enough time studying Pakistans Market and is well equipped to serve in the field of service based cellular industries in Pakistan .
NATURE OF BUSINESS
Warid Telecom is a private limited registered company. aving registered trademark. The total investment is debt -equity based with the ratio of 40:60. Means the 40% of the total investment is loan based and the other 60 % is equity based. The company have license to sell MOBI E GSM connection and provide of all kinds of mobile connection services to run business
About Warid
Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. Abu Dhabi Group entered into a strategic alliance with Singapore Telecom. Subsequent to this transaction in July 2007, Telecom giant SingTel acquired 30% percent equity stake in Warid Telecom, Pakistan, for S$758 million. This partnership is part of a strategy to support Warid Telecoms continued growth and to enhance its market position. Abu Dhabi Group, one of the largest business groups in the Middle East and the single largest foreign investor in Pakistan. It has diversified business in terests,

INTEROD
TION TO B SINESS
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offering strong financial resources and extensive management expertise that result in commercial success for several institutions. SingTels investment in mobile operations include, Advanced Info Service (AIS) Thailand, (21.4%), Bharti Telecom Group India (30.5%), Optus Telecom Australia (100%), Globe Telecom Philippines (44.5%), Pacific Bangladesh Telecom (PBT ) - Bangladesh (45%), Telkomsel Indonesia (35%) and Warid Telecom Pakistan (30%).
Abu Dhabi Group

Warid Telecom takes pride in being backed by the Abu Dhabi Group, one of the largest business groups in the Middle East and the single largest foreign investor in Pakistan. It has diversified business interests, offering strong financial resources and extensive management expertise that result in commercial success for several institutions. The Abu Dhabi group's major investments are in the following sectors:
y y y y y y
Oil and gas exploration Banking and financial services Automotive ospitality services Property development Telecommunications
The Abu Dhabi Group is led by is ighness Sheikh Nahayan Mabarak Al Nahayan. is ighness is the Federal Minister for Education of the nited Arab Emirates and e is the Chairman of Warid Telecom. The Abu Dhabi Group's other successful investments in Pakistan include Bank Alfalah, nited Bank imited, Taavun, Wateen Telecom and Raseen Technologies.

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Some Major Investments
Wholly o ne properties an companies
Bank Alfalah imited nited Bank imited Alfalah Insurance Company imited: Alfalah Exchange Company Iranian Sanden Industries PJS Co J.C. Maclean and Co Al Jazira Management Mall National Telesystems and Services (NTS) Neo Pharma C
Dhabi Enterprises easing Dhabi Contracting Dhabi Drilling Offshore Rig Operations Abu Dhabi Vegetable Oil Company Nama Development e Royal Meridien otel Abu Dhabi Al Ain Palace otel
AD Group consists of:
1) Abu Dhabi co. for wire and wireless communications./Baghdad -Iraq 2) Al-Najmy co. for Internet, Security, alarm and monitoring systems./Baghdad-Iraq 3) Al-Breamy co. for Mechanical, petrochemical and Medical trading./Baghdad -Iraq 4) Al-Baz co. for Broadcasting, Auditorium and voice systems./Baghdad -Iraq 5) AD Geophysical co. for geophysical services./Baghdad -Iraq 6) Eurowall co. for pre fabricated buildings and constructions./Baghdad -Iraq 7) Al-Jazeera Al-Arabia factory for steel wire fabrications./Baghdad -Iraq 8) IB co. International Business ink . .C./ Dubai - AE 9) Al-Omary Brothers co. for General Trading /Jebel Ali -Dubai- AE 10) AD co. for general trading./Calgary -Canada

% $
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SING TEL
Serving both the corporate and consumer markets, the SingTel Group is committed to bringing the best of global communications to customers in the Asia Pacific and beyond. With significant operations in Singapore and Australia (through wholly -owned subsidiary SingTel Optus), the Group provides a comprehensive portfolio of services that include voice and data services over fixed, wireless and Internet platforms. In Singapore, SingTel has had more than 128 years of operating experience and has played an integral part in the development of the city as a major communications hub in the region. In Australia, Optus serves more than six million customers. It has driven the competition as the chall enger brand and led the way in technological innovations and breakthroughs. Over the years, SingTel has grown to be a global player with a strong regional heritage. With one of the most extensive and advanced Telecommunications infrastructure, the Group o ffers unparalleled reach in Asia and beyond. SingTel's highly developed international network provides direct connections from Singapore to more than 100 countries. It is a major investor in many of the world's most sophisticated submarine cable and satel lite systems. The Group is the second largest satellite operator in the Asia Pacific. SingTel also operates a pan -Asian chain of world-class data centers, providing a suite of managed hosting telco solutions branded EXPAN. Data centers are located in Australia, ong Kong, Japan, Korea, Taiwan and Singapore. Through marketing alliances, EXPAN is also available in eight other markets including China and India. SingTels ability to support multi -national corporations (MNCs) on a cross -border basis is anchored by its extensive network of SingTel Global Offices (SGOs). Found in 37 cities in 19 countries and territories across Asia Pacific, Europe and the nited States, the SGOs provide MNCs with a single point of contact.

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The Group's other major investments in the region include Advanced Info Service (AIS) in Thailand, the Bharti Telecom Group in India, Globe Telecom in the Philippines, Pacific Bangladesh Telecom (PBT ) in Bangladesh, Telkomsel in Indonesia and Warid Telecom in Pakistan. Together, the Group has around 172 million mobile customers in eight markets. This is the largest multi-market mobile customer base in Asia outside of China. SingTel employs about 19,000 people worldwide and had a turnover of S$13.15 billion ( S$8.41 billion) and net profit after tax of S$3.78 billion ( S$2.42 billion) for the year ended 31 March 2007.

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LIFE KA NET
Mission/Vision Statements

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Mission Statement
Warid Telecom's stated mission is to be the leader in innovation and services
Company s Vision
"To become the leader in national communications arena with a strong international presence To be the national communication provider with a strong International presence
Corporate Values
Honesty
Communicating Truthfully Our pride
Integrity Compassi on Fairness Promise keeping
we listen, we care, we feel

Our pledge to practice
we promise - we deliver
Respect-what we owe, care, what we gain
Respect
Organizational behavior
arid elecom is a commercial organization and only profit is not its objecti e. arid elecom is working as a pri ate company with the direct foreign investment. arid elecom is a large organization having a large number of employees at middle level, lower level and non managerial level.
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Policies
Warid Telecom believes in working with strategic partners and employees for long term relationships. As a consequence of the above Warid Telecom is looking for the following to deliver its vision: Strategic vendors and partners to assist in rolling out these services in a timely and efficient manner with a focus on turnkey solutions and premium propositions. Strong partners to assist in launching these services and creating effective sales & marketing/business development opportunities for all the operationall y and financially gain. Consultants and experts to help deliver the vision. Well rounded employees who wish to become part of this adventure.
FINANCIAL OBJECTIVES
The basic goal of any firm is to earn money or generate profits on its investment.
Wari Telecom has clear strategies to maximize profits by selling more. Company is
working well according to its plans and strategies and has been very successful to achieve all its financial goals. Its expanding day by day and the financial status of the company is improving constantly. Warid Telecom, had acquired over1350,000 customers since the network went live on 23 May. The GSM/GPRS network was built from scratch, starting on 23 October 004, and at launch covered 28 citie s, Warid is attracting an average of over 10,000 new customers daily. Companys financial objective is to increase profit by using the selling technique of more selling to maximize profit. The company not only wants all the financial benefits but its wants to serve people and by charging le ss. The more the people get use to of that, the more profit could be earn by the company.

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SHORT TERM OBJECTIVES As t company is new t e short-term objectives are as follows:
1. Improve quality 2. Satisfy customers 3. Increase outlets 4. Provi e all the advertised features 5. Work according to the strategies to achieve goals (SHORT TERM) LONG TERM OBJECTIVES Companys long-term objectives are as follows: 1. Work with Government to cut prices and provide better quality 2. Control inflation in the country 3. Set standards for the market and involve Government in it 4. Network in whole Pakistan 5. To achieve all the financial benefits by serving people Work according to the strategies to achieve goals (LONG TERM) The Warid New Look An evolution that strengthens the focus: Use of a more contemporary font & style to g ive a more approachable image his new logo encompasses the expanding reach of but in an international footprint
o
4
arid identity while keeping the customers in
arid not just in Pakistan
ith our strengthened
PRS/E
E network we would empower our customers
to create their own life style networks
Old Look
New Look
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LIFE KA NET
Organizational structure & Strategy

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Message from the Chairmen
His Highness Shei h Nahayan Mabarak Al Nahayan Chairman By the grace of Allah we have completed four successful years of Warid Telecom Pakistan and are beginning an exciting fifth one. In these three years since Warid Telecom has launched in Pakistan, our organization has gone from its conceptual infancy stage to a challenger, and finally are moving forward to become a force. We have expanded in every way possible. In our fifth year, we will continue to expand and take our network and subscribers to the most dominant levels of Pakistan. We wish to make this year a new era for ourselves and the country, a time when Warid Telecom will become the primary service provider for all communication needs. We will spare no effort, cost or determination to ensure that Warid Telecom becomes a company to serve the people of Pakistan most effectively.
Boar
em er
Mr. Bashir Tahir Chief Executive, Dhabi Group

& Advisor to
88
Sheikh Nahayan Mabarak Al Nahayan
Mr. Tahir is a career banker since November 1962, and was previously the CEO of nion National Bank. e has over forty years experience in finance and over the past 12 years has applied it into advising and leading private equity and buyout ventures for the members of the AE royal family and their co -investors. Mr. Tahir is a pioneer for encouraging the collaboration of the various family offices of the ruling families in the region to help form what is now known as the Abu Dhabi Group.
Interns ip Report : Warid Telecom

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Mr. Tahir represents the interests of Sheikh Nahayan Mabarak Al Nahayan through his board memberships as well as actively monitoring and advising the portfolio companies.
Mr.Pervaiz A.Shahi
Board director
Mr. Parvez A.Shahid is a Pakistani national with a vast experience of more than 30 years in the banking sector. Currently he Is eExecutive In -charge of Strategic Planning Division, bank Alflah and authorized power of attorney holder of Warid Telecom (private) imited.
Mr. Lim chu n poh

Board director
@
Mr Lim, joined Singtel in October 1998. e was appointed EVP in feburary 2006. In October 2006, Mr im assmed the position of CEO (international). e is responsible for SingTel`s regional associates and supports the growth objectives of Singtel`s business groups through strategic investments in the region.
Mr. Quah ung yang

Board director
Mr. Quah is presently the vice-president (business management), International group in singtel, overseeing new investment oppertunites as well as existing investments in the region.

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Management Team
Mr. Muneer Farooqui
Chief Executive Officer Mr. Muneer Farooqui has served as CEO of Warid Telecom International imited, Bangladesh for over four years. In view of his dynamic work experience in Telecom secotr and proven leadership in various capacities where his last assignment was CEO of Warid Telecom, banglades, he has been assigned to undertake hi s responsibilities as CEO of Warid Telecom (pvt) limited, Pakistan, to optimize and lift the business performance of the company from its current level and ensure a potential niche for the company in the local Telecom industry.
Mr. Tariq Gulzar
Chief Financial Officer Mr. Tariq Gulzar brings with him a combined professional and industry background gained from over 15 years of experience in assurance, internal audit, accounting, risk management and general consulting in Telecom and media industries. Mr. Gulzar is a fellow chartered accountant (Pakistan), a certified public accountant (Colorado, SA) and a certified Internal Auditor (New York, SA).

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Mr. Shahza Rauf

Chief Strategy & Operations Officer
Mr. Shahzad Rauf joined Warid Telecom in march 2005. Prior to joining the company, Mr. Rauf was a founder and CEO of Web ight Productions Inc. providing B2B e-commerce supply chain management solutions for the food industry. e also have over 10 year experience of finance and information technology departments of public sectors in SA.
Mr. Muhamma Irfan Chau hry

Chief Technical Officer
Mr. Irfan joined Warid Telecom in November 2004. e has got 15 years of local and international cellular experience gained by working in operations, projects, planning, performance and services departments of multinational operators and vendor. Before joining Warid Telecom, he has worked with Ericsson, Cingular Wireless SA and Paktel. e is a Engeneering niversity ahore graduate.

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Affinity Partners
Warid is one of the world's largest mobile operators, with over 18 million subscribers in Pakistan alone and millions more to come. We offer cutting edge products like Blackberry, and innovative services like Caller Tunes, 123 FREE, and enterprise solution packages. More importantly to you, our great range of price plans and special offers attracts thousands of new customers everyday. We already have under mentioned companies as our proud affinity partners .
BANK ALFALAH CREDIT CARD BANK ALFALAH BRANCHES
MCB Credit Cards
4B TELECOM
VIVA TELECOM
MOBILE ZONE
NOBEL COMMUNICATION

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niz tion ch rt
B C
E
CEO
Advisor CIO CSO CCO
GM
Divisional Manager
Assistant. Manager
RMC
Z.S.M
Assistant. Manager
B.C.M FM Assistant. Manager
Org niz ion Structur (Org
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ORGANIZATIONAL DEPARTMENTALIZATION
Warid Telecom (Pvt).Ltd head office is in EFU House on Jail road, Lahore. Warid has the maximum number of Sales and customer Service Centers countrywide, backed by two state of art Contact Centers of international standards that are equipped with the right facilities to ensure real-time online services. Their highly trained and well-groomed team of Customer Service Executives provides round the clock support. Warid has setup corporate lounges, with a customer-friendly environment to provide personalized care to our corporate clients. Furthermore, an extensive network of franchises, kiosks and mobile units ensure easy and convenient accessibility. Different division, departments and functionaries working in head office are: 1. Finance 2. Human Resources 3. Marketing 4. Sales & Customer services 5. Administration 6. Products & Services 7. Procurement & Logistics 8. Legal Affairs 9. Engineering & Information Technology 10. Audit & Risk Services 11. Quality Assurance 12. International Business 13. Public Relations 14. Operations and Project Management 15. Govt. Relations

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Finance Department
Finance department of Warid Telecom is accountable for all the issues related to financial transactions no matter it is managerial accounting or financial accounting. Finance department of Warid Telecom deals with issues related to Financial Accounting, Fixed Assets, Accounts Payable, Tax R eturns, General ledger maintenance and treasury control. So, finance department is divided in two divisions according to matters dealt.
Financial Accounting Di ision

Financial accounting means reporting of the financial position and performance of a firm through financial statements issued to external users on a periodic basis. Financial accounting divisions of Warid Telecom consist following sections.
Operations Section
Financial accounting related to operations. Operations include the financial issues related to franchises operations .
Fixe Assets Section

Fixed assets division of Warid Telecom looks after the fixed assets of Warid Telecom. Fixed assets are very important for every organization because fixed assets tell the worth of the company.
Accounts Payable Section

Accounts payable division of Warid Telecom looks after the liabilities to be paid. Account payable is very important for better credit rating of a company.

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General Le ger Section

General edger division is responsible for developing T-accounts which specify detail of each account separately.
Treasury Control Section

Treasury control section looks after the finances, controls the budgets and investments made by country from treasure. It includes all maters related to Trade finance and import functions.
MANAGERIAL ACCOUNTING
The process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals. The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at providing information to parties outside the organization. In Warid Telecom this division deals with the accounts management and coordinates with the financial accounting division.

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LIFE KA NETWORK
Warid in Telecom Market

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Market Overview Of Mobile Companies i P ki
he Pakistan market has nearly
million subscribers as of
ov2009 (P A
data). he growth slowed down in 2009 but has picked up again gradually. See more about the recent competition among mobile network providers.
For those interested in the change from last year, the chart below shows the market share of mobile phone companies of Pakistan, as of September 2008. ompared with uly, the market share changed little. Mobilink lost % share (35%), picked up by Zong which is cash rich and has a ready-to-invest attitude. he ARPU in Pakistan remains low and is not projected to go up. he year 2008 was marked by changes in SIM sales and registration process, enforced by P A, the government regulator.
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Now lets review some recent history. At 2006 year end the total subscribers were 48.2 million. In June 2007 the total mobile users reached over 63 million. Based on numbers published at PTA website for 2007, the total number of subscribers (technically it is the number of SIMs iss ued) was 76.6 million , a tele density of nearly 49%. In 2007 the average growth rate was about 2.5 million new subscribers each month! After second half of 2007 it seemed as if the growth had slowed down but overall it was fine. One remarkable achievement was by ong (formerly Paketl) which launched very successful campaigns towards 2007 end completed rebrand launch in April of 2008. See this chart for a breakdown of market share by mobile companies at the end of Q1 of 2007.
eres a brief description of the top mobile companies in Pakistan. At the top is Mobilin , the Pakistani unit of Egypt-based Telecom company Orascom. It has been operating in Pakistan since 1994. Subscriber share is 35% at the end of Sep 2008.

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Ufone , a wholly owned subsidiary of Pakistan Telecommunication
Co. td (WARID), is now under the control of Etisalat group of AE. It has 21% of subscriber share and added the most lines (2.4 million) from 2006-07. For those in Pakistan it is the one company where they can easily invest locally.
Wari , owned by the Abu Dhabi group of the nited Arab
Emirates and sister of Wateen group is number 4 with 18% market of subscribers. Recently it sold 30% share to SingTel. Norways Telenor , a recent entrant with about a billion S dollar investment in Pakistan has been doing well, based on its recent earning report. It ha s about 20% of the market share. Telenor stock is listed in the Oslo stock market (TE ) and in S(TE NY.PK).
CM Pa (Zong bran ) , formerly Paktel, was the latest target of foreign
acquisition. After it got acquired by China Mobile it was rebranded as ong and launched one of the most successful and aggressive campaigns. Within a matter of few months, ong has achieved a 6% market share.
Pa istanis Sen 106 Billion Text Messages a Year
According to PTA report of December 2009, a total of 106 billion text messages were sent across the 5 cellular networks in Pakistan in 2009. If you assume 95 million subscribers on average, it comes to 93 messages per person per month.

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The average numbers for Pakistan are not very high when compared with some of the other top countries but the actual distribution across various segments and demographics varies very significantly. For instance, the youth tends to rely more on text messages.
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Warid Offerings
Warid puts a great focus on development of its products according to the customer demand and satisfaction. In recent year Warid has introduced Glow and made a greater impact in the market. Warid Telecom offers three main products that are 1. Zem Prepaid 2. Warid Postpaid 3. Glow
Zem Prepaid
Zem prepaid is a service for which customer has to pay in Advance for which he/she is going to use. Enjoy a prepaid convenience that is backed up by the promise of service, service & more service. Not only it is simple to use but it also offers a host of revolutionary products & features that will forever change the way you communicate. Zem prepaid offers two major type of services. Voice based Text based
Voice based Services

Voice related services include communication services which are associated with the transfer of voice. When Warid started its services there were two leading GSM cellular companies, one was Mobilink and the other was Ufone. Mobilink was the main market leader and Ufone was the successor in Pakistan. Then the main challenge for Warid was to attract customer towards it with the help of such services that will be exciting and attracting enough to move customers from the competitors.

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Text Based Services

Zem also provide many text packages so that u can text on any network with the cheapest rates any time any where. Also multi media messages (MMS) on the cheaper rates then any other network. Warid introduced various call packages with cheaper rates for each type of customer according to there need. So every customer can switch to calling plan that suits him the best.
Calling plans:
Warid had introduced three calling plans Zem 1 second, Zem LCR 30 second, Zem 60 Sec. Each package is offering different call rates and sms plans.
Charges Zem 1 Second Zem Lowest Call Rate 30 Seconds Zem 60 Seconds
Airtime Friends & Family (On-Net) Friends & Family (Off-Net) On-Net (Warid to Warid) Off-Net (Landline) Off-Net (Other Mobile) Messaging SMS On-Net (Warid to Warid) Off-Net (Other Mobile) International MMS VAS Value added services Mobile Internet Zem Talky Zem Talky International Warid Menu Services Warid Phone book Backup Mobile Downloads Ringtones 2.00 2.00 2.00 Re. 1.00/Unit 0.99/30sec 3.00/30sec 2.00 Rs. 115/Year Re. 1.00/Unit 0.99/30sec 3.00/30sec 2.00 Rs. 115/Year Re. 1.00/Unit 0.99/30sec 3.00/30sec 2.00 Rs. 115/Year 0.02 0.03 0.04 0.05 0.49 0.75 0.75 0.85 0.85 0.75 1.25 1.75 2.25
0.50 1.00 5.00 3.00
0.50 1.00 5.00 3.00
0.50 1.00 5.00 3.00

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Wallpaper/Logo/Animation/Picture Messages Caller Tunes Subscription Caller Tunes Tone Assignment Caller Tunes IVR (105) Charges Funstore (555)
Other Charges
2.00 10/Month 10/Song 5/Minute 5/Minute
FnF Addition FnF Deletion
9.00 2.00
9.00 2.00
9.00 2.00
Call & Sms Packages:
Hourly Package Make unlimited calls to On-net (Warid to Warid) numbers for Rs. 3+ tax.
Warid Minute Package Koi bhi number Koi Bhi Network Rs. 1.20/min
Voice Craze Enjoy 150 minutes of talk time and 50 minutes of talky messages every week!
Buy Zem Prepaid Order Warid prepaid connection and we will deliver it to you.
SMS Craze The only SMS, MMS & Mobile Internet package in Pakistan
infiNite Craze All Night Free Calls to 5 FnF Numbers & SMS/MMS to any network in Pakistan!

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Warid Postpaid
Warid post paid connection is associated with Royalty. Post paid subscription is also called a billing connection. In this type of a connection, you can avail the services of cellular connection first and pay the usage at the end of the month. On consistent and regular payment and high usage pattern you could win yourself the opportunity to enjoy exclusive loyalty and frequent user facility provided by Warid Telecom. Keeping in mind our brand philosophy, Warid postpaid is a name that depicts class and sophistication. Warid postpaid that defines commitment and satisfaction to the customers. Like zem prepaid Warid postpaid is also offering both voice related services and text based services.
Calling Plans
Warid postpaid when launch was called Zahi Postpaid. Zahi means royalty. And it was offering 5 calling plans to the mobile users. These plans were after re launch, zahi postpaid was replaced by its generic name that was Warid postpaid. Warid also revised tariffs for the postpaid calling plans. Now the Warid postpaid calling plans are:

U
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Post Pai Pac ages:
Upgrade yourself with the new Warid postpaid numbers Rs.500 line rental
Enjoy unlimited calls 24/7 on your 5 FnF
Pay 3 months line rent in advance & get the Fourth months line rent free.
Warid announces a value o ffer for its postpaid Subscribers.
Bill payment via Scratch card

(Bill payment is as easy as 321)
Bill by Email
Now you can receive your bills through email

V
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Glow Feel Free

Warid brings you an exciting new prepaid brand which is as different from others as you are. G OW empowers you to make choices in service and style. You take the call on how you make your calls. The best quality network gives you what you really want. Total control! Warid have introduced glow 1.0 with the great rates on the best network.
Call Rates
Call rates (Rs.) Peak GLOW GANG On-net Off-net 0.45 0.79 0.89 Weekdays Off-Peak FREE* 0.69 0.89 Peak FREE* 0.69 0.89 Weekends Off-Peak FREE* 0.69 0.89
UNLIMITED SMS BUNDLES GLOW Unlimited SMS Bundles Exclusive of taxes
Enjoy 250 SMS at Rs.2.99/day

Enjoy 700 SMS at Rs.6.99/week
Glow 2.o
Keep Glo n .
After The success of Warid Glow 1.0 Now, Warid brings you an electrifying prepaid brand, which is as unique as you. Loaded with exciting new features, Glow introduces you to a world where you define your own style. You choose how to make the best use of our incredible services. Finally, a high quality network gives you what you really want- Complete Control!
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Call 10 Glow Gang Friends with Glow 2.0 (5 off-net & 5 on-net numbers) Any number, Any network for just Rs. 0.61/30sec.
Glow 2.0 Services

Mobile fun Social networking Mobile internet Go global Sms bundles Fuel Night and weekend package Sports Music
Call Rates
Y
Week ays Tariff Peak

Y e e e e
Weeken s Peak Off-Peak
Off-Peak
(5 favorite off-net num ers)

d
(5 favorite on-net num ers)

d
Off-net (Warid to Other Mobile Networks & Landlines)
Rs 0 85
e e
Rs 0 85
Rs 0 85
Rs 0 85
On-net (
arid to Warid)
Rs 0 75
Rs 0 75
Rs 0 75
Rs 0 75
low
ang Friends
Rs 0 61
Rs 2 99/call
Rs 0 61
Rs 2 99/call
cba
low
ang F
nds
` `
Rs 0 61
Rs 0 61
Rs 0 61
Rs 0 61
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Glow
2.0 Gang:
Favorite 5 off-net & 5 on-net numbers On-net: To all other Warid numbers Off-net: To all other mobile networks & landline numbers Weekdays: Monday to Friday Peak hours: 8am to 11pm Off-Peak hours: 11pm to 8am Weekends: Saturday & Sunday Peak hours: 5pm to 11pm Off-Peak hours: 11pm to 5pm
Glo SMS Bun les
Unlimited texting in the World of Glow Send unlimited SMS to any number, any time, on all networks in Pakistan.
y y
250 SMS @ Rs. 2.99+tax/day 700 SMS @ Rs. 6.99+tax/week
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PRODUCTS AND SERVICES
Warid presents a wide selection of value added services that ensure you well manage your life via your mobile phone & express yourself effectively. The world of Warid Value Added Services has unlimited options of not only communication, but also convenience, entertainment & personalization. These services comprise a myriad of options from entertainment to utility based services. You think of it and we have it! Keep exploring & stay amused!
Caller Tunes - Song Search Search for your favourite song, and set it as your CallerTune!
VOW (Videos on Warid) Enjoy FREE entertaining videos on the go.
786 Islamic Services Dial 786 from your Warid number and listen to Quranic Ayat, Hadith, Namaz...
Warid Call Block 9211 Warid is proud to launch Warid Call Block 9211 service that instantly makes you get rid of those annoying calls
Surf @ Twilight Enjoy the unlimited freedom of mobile internet.
Warid SMS Email Now get your e-mails on your mobile via SMS.
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Warid Comedy Corner Ab hasso dil khol ke!
Bill Payment via ATM Warid offiers Bill Payment & prepaid TopUp via ATM
IM Over SMS! Let your fingers do the talking!
International Top-up Send balance to Warid prepaid users in Pakistan...
DUA Service Allah(SWT) says Call on Me; I will answer your DUA
Missed Call Alerts Enjoy Miss Call Alerts now on your prepaid numbers..
Prepaid GPRS Bucket If you love surfing, Warid offers you a package that will keep you connected..
Facebook Mobile Texts Convenience you never imagined!
Youth Blog Zone Write Share & Inspire!
Warid Music Club Now carry your favorite music with you..anywhere, anytime!
Upload Photos @ Facebook Snap, Send, Share!
Love Meter When yOu are in Love, you cant fall asleep because reality is better than your dreams.
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Recharge Me Stay in touch, even at low balance
Warid FunStore Now gift to friends & spread the joy!
Zem Gup Lagao Gup Lagao-Dost Banao Sir Zem Kay saath
Balance Share Out of cash? But never out of balance!
Pocket PCO Now your business is truly in your pocket
Warid Sports Station Never miss out your favorite game
Friend Finder Find your friends location instantly on your mobile...
Mobile Games Turn your phone into a gaming zone with Zem mobile games
Place Finder Find places instantly on your mobile.
talky zoom
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LIFE KA NET
RK
Learning As a Student Intern In Warid Telecom
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My Wor ings in Departments

Trade finance Planning & Budgeting Budgeting & Cost control
Tra e Finance
'International trade' is the exchange of goods and services across international saa boundaries or territories. International trade can be defined as either the buying (importing) or selling (exporting) of goods or services on a global basis. In most countries, it represent s a significant share of GDP. While international trade has been present throughout much of history its economic, social, and political importance have been on the rise in recent centuries, mainly because of Industrialization, advanced transportation, Globalization, Multinational corporations, and outsourcing. In fact, it is probably the increasing prevalence of international trade that is usually meant by the term "globalization". International trade is also a branch of economics, which together with Inter national finance, forms the larger branch of International economics.
Metho s Of Payment
There are four methods of payments in the international trade which are as under.
1. ADVANCE PAYMENT:
In this case importer pays the exporter in advance & gets goods & services later. (No obligation on Bank)
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2.
ARY
RE I
ER O
RE I
It constitutes a definite undertaking of the bank to pay the exporter provided that the exporter presents the documents which comply with the terms & conditions of the L .
3.
IO
he exporter (Principal) present documents to his bank (Remitting Bank), who send the documents to an importing countrys bank (Colleting Bank) to deliver documents against payment or acceptance to Importer (Drawee). URC 522 (Universal Rules for Collection 522) governs the rules of collection. (no obligation on Bank)
4. OPE
ACCO
In this case exporter trusts the importer and sends the goods / services in advance & get paid later (no obligation on bank). O RISK EXP R ER ADVANCE PAYMENT LETTER F CREDIT I RISK IMPORTER
COLLECTION OPEN ACCOUNT I O
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WHEN DOCUMENTARY CREDIT USED
There is doubt about importer solvency / ability to pay for goods or services delivered There is concern about the stability of the political, economic or legal system of the country of import There is possibility of foreign exchange restriction may account in the country of import. (IRAN) Govt. regulations may require the use of letter of cr edit to settle certain / all international transaction. The importer is concerned about the exporters ability to perform under sales agreement.
ADVANTAGES / DISADVATAGES OF DOCUMENTARY CREDIT
ADVANTAGES FOR EXPORTER:
as an undertaking of settlement from a bank (not dependent on importer)
Settlement upon shipment rather than delivery Possible to control over goods (Transport document not in the name of importer) Possible access to bank finance
DISADVANTAGES FOR EXPORTER:
Expensive compared to other method of settlement. Require greater effort & accuracy in documents preparation. Require detailed knowledge of documentary credit) Often subject to specific detailed conditions. CP 600 ( the rules govern the operation of
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ADVANTAGES FOR IMPORTER:
Can set conditions in credit that may be adhered to before settlement is made. Ability to specify when, how & where the goods are shipped by incorporating the date of shipment, mode of transportation & port of discharge in C conditions. Banks will not make settlement unless correct documents are presented. Possible access to bank finance.
DISADVANTAGES FOR IMPORTER:
Expensive compared to other method of settlement. Require detailed knowledge of documentary credit) tilization of bank credit loan Delay in receipt of documents compared to open account. CP 600 ( the rules govern the operation of
DOCUMENTARY CREDIT CYCLE 10 BASIC STEPS
Before issuance of letter of credit exporter issues proforma invoice & forward to importer which contains the following details. Price Quantity Description of goods / services Insurance Transport Details
If importer happy with the terms of pro forma invoice he issues a purchase order & the two parties enter into a sales agreement. Now we move towards the 10 basic steps involved in normal DC transaction.
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Step 1:
Importer applies to the issuing bank to issue a C.

Step 2:
The issuing bank checks that the application is complete, precise and satisfies internal credit approval.
Step :
The issuing bank issues documentary credit sub ject to CP 600 ( niversal Customs Practices)
Step :
The advising bank advices the C to the exporter.

Step 5:
The beneficiary examines the terms & conditions of the documentary credit.
Step 6:
The beneficiary ships the goods & complete the documents r equired under C.
Step 7:
The nominated bank checks that the documents comply with the terms in the credit. If they comply settlement may be made. Documents than sent to the issuing bank.
Step 8:
The issuing bank examines the documents that the documents comply with the terms of credit.
Step 9:
The documents comply the issuing bank reimburses the nominated bank within 05 working days as per CP 600 rules. Nominated bank makes settlement to beneficiary if not done so.
Step 10:
The issuing bank releases the documents against payment to the applicant. The applicant now collect the goods.
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LC OPE I
OCUME
L/C ADVICE DEBIT AUTHORITY IB-8 FORM PROFORMA INVOICE LC DRAFT (MT-700) INSURANCE POLICY MARINE ENDORSEMENT (IF RE UIRED)
E y y y y
ORSEME Airway bill
O S IPPI
OCUME
Commercial invoice Packing list Insurance advice
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SHIPPING DOCUMENTS:
Endorsement letter
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Copies Of Airway Bill Copies Of Commercial Invoice
Demand Slip For Import Duties (From Cargo Company) Duties Schedule (Made By Warid Against Duties Schedule)
LC Payment Terms
1. ON SIG T 2. ON Draft 30 ,60 , 90 DAYS A bill of exchange is issued for 30 , 60 or 90 days draft. Always 2 bill of exchange are issued so if 1 st is lost the 2 nd can be use. Debit invoice is then issued by bank against the B/E payment. 3. On PAC, FAC
PAC : (PROVISIONAL ACCEPTANCE CERTIFICATE)
Provisional acceptance means in respect of implementation phase, a PA means a milestone indicating either the buyer accepts the test completion report, or that commercial launch for the implementation phase has occur , whichever is earlier.
FAC: (FINAL ACCEPTANCE CERTIFICATE)
Final acceptance means a milestone indicating either buyer accepts the supplied solution and that all acceptance criteria have been met or 60 days from passed from the date of last Provisional acceptance. Whichever is earlier. Documents attached with PAC/FAC :
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Payment request sheet as per service/purchase order Commercial invoice Sales tax invoice
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Annexure -- details
Amen ment in LC :
In case of any amendment in L/C a message of amendment is sent to the bank by the company. Bank charge an amount and issue a debit invoice after the amendment is made in L/C. Telex Charges Ordinary L/C AMD Commission FED C ARGE
L/C MARGIN:
100% margin of L/C is taken by the bank in start . It can be also be more or less as the case maybe. At the time of payment margin is returned and then we make the payment. Margin reconciliation is done at the end of every month.
IMPORT ON CONTRACT BASIS
Documents:
Contract of two companies Approval note for the contract from higher authorities Purchase requisition Purchase order Pro forma invoice Registration of bank contract Request for establishment of import contract Import contract registration Retirement Note by bank after receiving required doc uments.eg (commercial invoice, B/L etc) Debit approval from importer Debit authority given to importer bank Swift message sent to exporter
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Amendment in import Contract

If any amendment is required in the contract a request letter is send to the bank for amendment. Eg. Enhance the amount of contract by S $626.32 making total value of contract S $ 9937.37 all other details as per beneficiary pro forma invoice. Banks accepts the request and do amendment as required by the client. All other conditions remain the same.
NOTE:We can delay the payment in contract on mutual agreement. Its not necessary to pay on specific date as in L/C. That is because both companies have good relations b/w them.
en um:
Internal document agreement Once a major contract is made after that every time we purchase we can do amendments in the existing contract. E.g increase the price , quantity, change payment terms etc. Addendum is issued on which signatures of both company witnesses are made After that notice of approval for the addendum is issued and signed by the higher authorities like CEO, CFO, BOP, CSO. Purchase order is then sent to exporter.
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Planning & Bu geting:

Planning and budgeting department is concerned with preparation of budgets and making forecasts for coming years to help in decision making and planning in the present.
h i hh
The roce
Planning is a tool which helps management in its attempts to cope with the uncertainty of the future. It starts with certain assumptions based on the management's experience, knowledge, and judgment. These estimates are projected into the coming months or years using one or more techniques such as Box-Jenkins models, Delphi method, exponential smoothing , moving averages, regression analysis, and trend projection. Since any error in the assumptions will result in a similar or magnified error in forecasting, the technique of sensitivity analysis is used which assigns a range of values to the uncertain factors (variables). A forecast (which indicates what 'might' happen) should not be confused with a budget (which shows what 'ought' to happen).
Eg.
Stock analysts use various forecasting methods to determine future stock price movements, earnings, etc. Economists use forecasting techniques in order to determine future economic trends. Most people view the world as consisting of a large number of alternatives. Futures research evolved as a way of examining the alternative futures and id entifying the most probable. Forecasting is designed to help decision making and planning in the present. Forecasts empower people because their use implies that we can modify variables now to alter (or be prepared for) the future. A prediction is an invit ation to introduce change into a System
Forecasting is
of anal zing current and hi torical data to determine fu ture trends
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FORECASTING METHODS
All forecasting methods can be divided into two broad categories: Qualitative and Quantitative . Many forecasting techniques use past or historical data in the form of
time series. A time series is simply a set of observations measured at successive points in time or over successive periods of time. Forecasts essentially provide future values of the time series on a specific variable such as sales volume. Division of forecasting methods into qualitative and quantitative categories is based on the availability of historical time series data .
QUALITATIVE FORECASTING METHODS

Qualitative forecasting methods are based on educated opinions of appropriate persons
1. Delphi metho : forecast is developed by a panel of experts who anonymously

answer a series of questions; responses are fed back to panel members who then may change their original responses - very time consuming and expensive - new groupware makes this process much more feasible
2. Mar et research: panels, questionnaires, test markets, surveys, etc. 3. Pro uct life-cycle analogy: forecasts based on life-cycles of similar products,
services, or processes
4. Expert ju gments. by management, sales force, or other knowledgeable

persons
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QUANTITATIVE FORECASTING METHODS TIME SERIES FORECASTING METHODS
Time series forecasting methods are based on analysis of historical data (time series: a set of observations measured at successive times or over successive periods). They make the assumption that past patterns in data can be used to forecast future data points. 1. Moving averages (simple moving average, weighted moving average): forecast is based on arithmetic average of a given number of past data points 2. Exponential smoothing (single exponential smoothing, double exponential smoothing): a type of weighted moving average that allows inclusion of trends, etc. 3. Mathematical mo els (trend lines, log-linear models, Fourier series, etc.): linear or non-linear models fitted to time -series data, usually by regression methods 4. Box-Jen ins metho s : autocorrelation methods used to identify underlying time series and to fit the "best" mo de.
For casting In Diff r nt S ctors
Financial Forecasting
Financial Forecasting describes the process by which firms think about and prepare for the future. The forecasting process provides the means for a firm to express its goals and priorities and to ensure that they are internally consistent. It also assists the firm in identifying the asset requirements and needs for external financing.
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Telecommunications forecasting
All telecommunications service providers perform forecasting calculations to assist them in planning their networks. Accurate forecasting he lps operators to make key investment decisions relating to product development and introduction, advertising, pricing etc, well in advance of product launch, which helps to ensure that the company will make a profit on a new venture and that capital is inv ested wisely
Manufacturing Forecasting
The manufacturing challenge is to deliver the best possible service with the forecast information they can reasonably expect. The long term solution to the problem of sales forecasting is to increase flexibility an d reduce lead times to the extent that you are able to react faster than your customers. The forecast then becomes much less important except as a long range or strategic planning tool.
Budgeting
Establishing a planned level of expenditures, usuall at a fairl detailed level. A company may plan and maintain a budget on either an accrual or a cash basis .
p p
Business budgeting is one of the most powerful financial tools available to any small business owner. Put simply, maintaining a good short - and long-range financial plan enables you to control your cash flow instead of having it control you. The most effective financial budget includes both a short -range, month-to-month plan for at least one calendar year and a long-range, quarter-to-quarter plan you use for financial statement reporting. It should be prepared during the two months preceding the fiscal year-end to allow ample time for sufficient information -gathering. Many financial budgets provide a plan only for the income statement; however, it's important to budget both the income statement and balance sheet. This enables you to consider potential cash -flow needs for your entire operation, not just as they pertain to income and expenses. For i nstance, if you'd already been in business for a
58
few years and were adding a new product line, you'd need to consider the impact of inventory purchases on cash flow. There are thee main budgeting techniques:
y y y
Incremental budgeting ero-based budgeting Flexed budgeting
Incremental Budgeting
The incremental approach to budgeting combines the costs identified from the previous accounting period with percentage additions. These percentage additions are utilised to cover two key areas which include cost increases as a result of inflation or higher purchases costs and predictions associated with increases in costs and income as a result of business volume predictions. A key limitation of the incremental budgeting system is the manner in which percentages are added in a blanket fashion resulting in the likelihood of higher overall costs in the long-term. This may then also result in a business having to increase its sale prices to a level that is no longer competitive.
Zero-Based Budgeting
Zero-based budgeting system requires budgeting to commence with the assumption that every cost has a zero base. Next, each item relating to expenditure is worked through and decisions are made as to whether the purchase is completely essential. Then different purchasing options associated with the specific item are explored as a means of ensuring the item is obtained as cost -effectively as possible. One of the main limitations of the zero -budgeting system is that it can take an awful lot of time to work through each indiv idual cost in this manner. owever, it is fair to add that utilising this approach will then provide an extremely useful database containing valuable, time -saving information for the years to come.
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Flexed Budgeting
As with zero-based budgeting, the fl exed budgeting system gives its name away in the title as it involves 'flexing' the normal budget. The benefits of flexed budgeting are that it is likely to be considerably more accurate as the budget is adapted to suit various external changes. Within thi s approach managers are able to provide key information resulting in an achievable budget, pessimistic budget and optimistic budget. Through undertaking the process of flexed budgeting, managers are better able to make important decision relating to risk a nd expenditure, having gained a wider perspective on best and worst outcomes.
Bu geting & Cost Control
The major Tasks in this department are: Business case Evaluation Decision making For approval of budget Variance analysis sing ERP
Whenever budget is required for any new project an approval note is sent to the budgeting and cost control department for approval. ere the project is evaluated with the help of past records and it is calculated that weather this project will give benefit to the organization or not. If its more costly and cannot generate revenues within 6 months the project is canceled.
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Duties:
Wee 1 Mr. Zahid Manzoor (Manager Trade Finance ) My Internship Started in Trade finance department. Where I learn about international trade. In Warid only import activities are performed. I got a chance to study many import cases. L/C opening procedures. Shipment and other documents preparation. Also I w orked on an import case with Manager Trade Finance. Trade Finance activities
q
L/C Opening Procedures Preparation of Import documents Endorsements Preparation of LC draft

Week 2 Mr. Kashif Rehman (Asst. Manager Treasury ) Here I studied about IC (import contracts). How they are made what documentation is used, and how Import on contract bases are done.
r
Contract Management Shipment record maintenance L/C margin reconciliation Local trade Documentations (Sim card Purchases)
Week 3 & 4 Mr. Tahir Matloob (Manager Budget & cost control ) . I was assigned a project by my manager that was to reconcile the budget of marketing department.
Budget review
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Budget Reconciliation
y Monthly and Annually
Variance Analysis
Week 5 Mr. Saim Ahmad (Asst. Manager Budget & cost control ) Whenever any new project is about to start the budget approval is necessary. So approval notes are issued to see weather the project would be beneficial for the organization or not. In budgeting and cost contro l dept we have to evaluate the cases and give approval of budget.
Studied Business cases Evaluation Of cases Approval Recommendations

Week 6 Mr. Touqeer Zafar (planning and budgeting) In the last week of my internship my working was research based. I was assigned to prepare a complete report on forecasting and budgeting techniques. Also I had to present my work.
Forcasting methods & Techniques Prepared detailed project report on Forcasting & budgeting
Accomplishments:
Finally, internships are an important part of the academic program, as they provide us with the practical experience during our academic career. I am very grateful that I received an internship at Warid Telecom as it was a great learning experience on how a multinational company works and further improved my skills of team working and critical decision making .
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New knowledge acquired

Trade Finance activities L/C Opening Preparation of Import documents Contract Management Budget Review Budget reconciliations Account maintenance Business case evaluation Decision Making Forcasting & Budgeting
How Experience impact your career

Finance in a Multi National company is best place to learn Finance basics and practices due to its dynamic nature. No doub t experience as an internee in Finance department of multinational cellular company like Warid Telecom would serve as step stone to better career in the field of accounting and Finance. Experience such as Trade finance activities, Letter of credit opening, budgeting, variance analysis, account maintenance, participating in Legal discussions and meeting with Professionals would be very helpful for my future assignments as a student as well as a Finance professional.
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LIFE KA NET
RK
Financial Ratio & Analysis
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Ratio Analysis
Description Operating Gross Profit margin Operating profit Margin Net Margin % % % 36.30 18.15 15.45 43.70 24.67 (4.26) Year 2009 Year 2008
Performance Return on Assets Return on Equity Debtors Turnover Levarage Debt:Equity Leverage Time interest Earned Ratio % Time 16:84 35.66 15.43 15:85 27.92 (5.26) % % Times 5.94 9.28 4.90 (2.06) (2.71) 5.35
Liqui ity Current Quick Valuation Mp to BP P/E Book value Dividend payout ratio Dividend yield Times Ratio Rs % Ratio .88 9.63 19.49 83.6 8.7 2.01 (70) 19.19 s
Times Times
1.50 1.36
1.81 1.58
Activity Raitio Average collection period Average payment period Total asset turnover ARPU US$p/m Days Days 24 425 .38 1.83 29 291 .48 2.5
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Ratio Analysis
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. The ratios are categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability Ratios, and Market Value Ratios. Ratio Analysis as a tool possesses several important features. The data, which are provided by financial statements, are readily available. The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm's financial performance with industry averages. In addition, ratios can be used in a form of trend analysis to identify areas where performance has improved or deteriorated over time. Because Ratio Analysis is based up on Accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as istorical Cost Accounting and inflation. Therefore, Ratio Analysis should only be used as a first step in financial analys is, to obtain a quick indication of a firm's performance and to identify areas which need to be investigated further.
Liqui ity
Liqui ity Position
The liquidity position of the company continues to suffer since a setback in FY08. This trend has been witnessed despite increasing current assets, as current liabilities grew more sharply. The short term borrowings of the company have been mounting for the last few years and this has contributed to the current trend of the current ratio. It may be noted that the company holds large amounts of cash and bank balances compared to the other companies in the business. This may provide an edge to the company over its competitors.
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Current Ratio
2009 Current asset 2008
54,220,241 36,086,322
= 1.50 Current liabilities
36,086,322 36,086,322 = 1.80
The current ratio is one of the most commonly cited financial ratios. Current ratio measures the firms ability to meet its shirt term obligations. Current ratio has shown a negative trend by 0.30.This is due to 164.68% increase in current liabilities and 136.91% increase in current assets. This shows that liquidity of WARID has decreased. . Standard for current ratio is generally 2 times. The more predictable a firms cash flow, the lower the acceptable current ratio. Because WARID is in a business with a relatively predictable annual cash flow, its current ratio of 1.50 should be quiet acceptable.
Quic Ratio
2009 Current Assetsinventory Current liabilities =Quic Ratio
2008
54,220,241-
39,603,406-
514284336,086,32 497935121,913,959
=1.36
=1.58
The Quick (acid-test) ratio is similar to the current ratio except that it excludes inventory, which is generally the least liquid current asset.
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Quick ratio has shown a negative trend of 0.22 times. This is due to increase in current liabilities by 164.68% and 136.91 in current asset. Inventory value has also risen. This has caused the quick ratio to fal l this year. A quick ratio of 1.0 ore greater is generally accepted, but as with current ratio, what value is acceptable depends on the industry. Although the liquidity stance of the company is fairly satisfactory at the moment, but a continuation of the current negative trend may spell trouble for the company.
Activity Ratio
Average collection perio
2009 Account Receivables Average Sales per ay =24days =ACP =29days 3895152162298 2008 5270547181743
ACP or average age of accounts receivable is useful in evaluating credit and collection policies. The average collection period is meaningful only in relation to firms credit terms. ACP has improved to 24 days in FY09 as compared to 29 days in FY08. Improvements in these areas have played a major role in WARID revival in FY09 after facing a loss in FY08
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Average Payment Perio

2009 APP = Account Payable Average Purchase per ay 2008
36,086,322 84909 21,913,959 75306

=425days =291days
The average payment period or average age of payables is useful in evaluating that how much a firm uses its payables in its financing activities.
APP has shown a positive trend by 134 days in FY09. This is due to meaningful changes in the payment procedures adopted by the finance section of WARID.
Total Asset Turnover

2009 TAT Revenue Total Assets 59,239,001154,048,079 =0.38 2008 66336042137447852 =0.48
Total asset turnover indicated the efficiency with which the firm uses its assets to generate sales. WARIDs turns over its assets 0.38 times in FY09 which is 0.10 times less than last year. This is due to increase in total asset by 112.08% and decrease in sales by 10.7%. Generally the higher a firms total asset turnover, the more efficiently its assets have been utilized. This measure is used by the WARID management for keeping an eye on the operational activities of the company that how well its assets are being utilized.
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Debt
Debt Ratio
2009 Total Liabilities Total Assets =Debt Ratio 103058165154,048,079 2008 91856400137,447,852
=66.90%
=62.83%
The debt ratio measures the proportion of total assets financed by the firms creditor. The higher the ratio, the greater the amount of other peoples money being used to generate profits. Debt ratio of WARID has shown a very positive trend in FY09. Debt ratio has almost increased by 4.07%. This is due to increase in asset and decrease in liabilities. The value of 66.90% indicated that WARID has financed more than half of its assets with the debt.
Debt: Equity
2009 Debt Equity 16:84 2008 15:85
Debt: Equity ratio is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. The debt equity ratio has shown that debt has increased and equity has decreased by 1 percent each. A high debt/equity ratio ge nerally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings
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as a result of the additional interest expense.
Debtors Turnover
2009 DT 2008
4.90
5.35
Debtor's turnover ratio shows how long people normally take to pay a firm for purchases on average. This ratio is beneficial when more than one period is calculated. This ratio of WARID has shown a positive trend of 0.45 due to effective collection policies.
Leverage
2009 Leverage 35.66% 2008 27.48%
The higher the ratio the greater the firms degree of indebtedness and the more financial leverage it has. It has increased by 8.18%.
Time Interest Earne
2009
2008
EBITInterest 14,020,917908679 = TIE
(4,462,616)848406 =(5.26)
=15.43
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Times interest earned ratio, sometimes called the interest coverage ratio, measures the firms ability to make contractual payments. The higher its value the better able the firm is to fulfill its interest obligations. Time Interest Earned ratio has also increased to 15.43% in FY09 as compared to -5.26 in FY08. WARID has certainly shown a tremendous improvement in its ability to make contractual interest payments.
Profitability Ratio
Gross Profit Margin
2009 Gross Profit Sales =GPM 21,506,71959,239,001 2008 28,989,17366,336,042
=36.30%
=43.70%
The gross profit margin measure the percentage of each sales Rs remaining after the firm has paid for its goods. The higher the gross profit margin, the better. We can see that gross profit margin of WARID has declined in FY09. This is mainly due to reduction in gross profit by 25.81%. This decrease is due to less revenue by 10.7% and increase in cost of services by 1.03%.
Operating Profit Margin

2009 Operating Profit Sales =OPM 10,754,387 59,239,001 =18.15% 2008 16,365,672 66,336,042 =24.67%
72
The operating profit margin measures the percentage of each sales Rs remaining after all costs and expenses other than interest, taxes and preferred stock dividend are deducted. We can clearly see that OPM of WARID is showing a negative trend. Although operating expenses that decreased by 14.82% OPM is still shown a decline of 6.52%. This is mainly due to reduction in gross profit by 25.81%. This decrease is due to less revenue by 10.7% and increase in cost of services by 1.03%.
Net Profit Margin

2009 2008
Net Profit Sales
9,151,185 59,239,001 =15.45%
(2,824,890) 66,336,042 =(4.26%)
The net profit margin measures the percentage of each sales Rs remaining after all costs and expenses including interests, taxes and preferred stock dividend, have been deducted. The higher the firms Net profit margin the better the firm is. WARID has made a remarkable effort in coming to state of profitability after facing severe losses in FY08. Increase of 19.71% speaks for itself. This is mainly due to positive increase in other operating income and changes in the VSS which are almost reduction of 99 %.
Earning Per Share
2009 Earning available for common stoc hol er 2008
9,151,185 51,000,000 (2,824,890) 51,000,000 =1.79 =(0.55)
Total outstan ing common stoc shares
73
The firms EPS is generally of interest to present and potential stockholders and management. EPS represents the number of Rs earned during the period on behalf of each outstanding share of common stock. We can clearly see an incredible increase in EPS by 2.34PRS.
Return on Total Assets
2009 Earning available for common stoc hol er Total Assets 2008
9,151,185154,048,079
(2,824,890) 137,447,852
=5.94%
= (2.06%)
Return on total asset often called return on investment (ROI), measures the overall effectiveness of management in generating profits with its available assets. igher the firms return on total asset, the better it is. We can see that ROA has shown a significant increase of 8% in FY09. This is mainly because of increase in Net profit by almost 423.95%.
Return on Common Equity

2009 Earning available for common stoc hol er Common Stoc Equity =ROE =9.28% = (2.71%) 9,151,185986119 2008 (2,824,890)1042395
The return on equity (ROE) measures the return earned on the common stockholders investment in the firm. Generally, the higher t hese returns, the better off are the owners.
74
We can clearly notice the ROE has dramatically increased by 11.99%. This is mainly because of increase in Net profit by almost 423.95%.
Mar et
Mar et Price to Brea up Value
2009 Mar et Value Boo Value =MP/BP 17.2419.49 2008 38.6419.19
=0.88
=2.01
The market/book ratio provides an assessment of how investor views the firms performance. It relates the market value of the firms share to their book value. MPvBP has shown that investors faith on WARID has decline even though after having a great recovery WARID must continue in this trend. Investor are not ready to pay even the book value of the share, while in FY08 they were ready to pay 2.01 times more than book value and in FY09 they are ready to pay only 0.88 of the book value.
Price/Earnings Ratio
2009 MP EPS 17.241.79 2008 38.64(0.55)
=P/E
=9.63
=(70)
The price/earnings (P/E) ratio is commonly used to assess the owners appraisal of share value. The P/E measures the amount that investors are willing to pay for each
75
Rs of a firm earrings. The level of this ratio indicated the confidence that investor have in the firms future performance. The higher the P/E ratio the greater the investor confidence.
Boo Value per Share

2009 Common Stoc Equity Number of Outstan ing Shares =bv =19.49 =19.19 98611900051,000,000 2008 104239500051,000,000
We can clearly notice that BV has increased by 0.30%. This is due to increase in stock holder equity in FY09 by 1.03%.
Divi en
2009 Divi en 2008
1.50
--
In FY08 WARID faced the loss and no dividend were paid. In FY09 WARID posted a net profit of Rs 9.15 billion in FY09 against last year's net loss figure of Rs 2.83 billion. Overall Dividend declared was Rs 7650 billion. Although Rs 1.50 is not significant as compared to dividend offered by WARID in financial years before FY08 but keeping in view current trends in sector it is rational enough.
76
Divi en Payout Ratio
2009 Divi en per share EPS
2008
1.50 1.79
--
=DPR
=83.60%
Dividend Payout Ratio shows percentage of earnings paid to shareholders in dividends. In FY08 WARID faced the loss and no dividend were paid. In FY09 WARID posted a net profit of Rs 9.15 billion in FY09 against last year's net loss figure of Rs 2.83 billion.
Divi en Yiel
2009 ivi en per share MPS =DY 1.50 17.24 =8.70
2008
--
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Last year WARID faced a loss and no dividend was paid and consequently no dividend yield. In FY09 WARID showed a dividend yield of 8.70.
77
Mar et Capitalization
2009 MC RS(m) 2008
87,924
197,064
Market capitalization/capitalization (often market cap) is a measurement of size of a business enterprise (corporation) equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and purchased by investors) of a public company. WARIDs Market capitalization is facing a downward tr end which is very alarming for the management. This is due to the fall in the market price of WARIDs share in FY09. Company size is a basic determinant of asset allocation and risk-return parameters for stocks and stock mutual funds. The term should not b e confused with a company's "capitalization," which is a financial statement term that refers to the sum of a company's shareholders' equity plus long -term debt.
Average Revenue Per User (ARPU):P
Until recently, the mobile operators in Pakistan enjoyed handsome ARPUs; however, for the last couple of years especially after the global trend, the domestic ARPUs have been falling sharply. Today, the overall all telecom industry's ARPU stands at 2.48 US$ per month. In 2008 Average revenue per user of Warid Te lecom was 2.5 US$ p/m which is in 2009 decrease to 1.83. this also shows Decline in profitability of warid telecom.
78
In trend analysis we done two types of analysis, these are
1.
It is conducted by setting consecutive balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in individual categories on a year to-year or multiyear basis. A comparison of statements over several years reveals direction, speed and extent of a trend(s). The horizontal financial statements analysis is done by restating amount of each item or group of items as a percentage.
2. Ve
Like horizontal analysis this can also done for balance sheet and income statement. Here we assign 00% value to any key item of balance sheet or income statement and then see portion of other items in this percentage.
w y
yu wvu x t
79
INCOME STATEMENT
Hori ontal analysis

2008 2009
( Rupees in thousand ) Revenue Cost of Services Gross Profit Operating Expenses Operating Profit Other Expenses/Income Profit/(loss) Before Tax Tax 66,336,042 100% 59,239,001 89.30% Worse Worse Worse Better Worse Better Better Worse
Remarks
(37,346,869) 100% 28,989,173 100%
(37,732,282) 101.03% 21,506,719 (74.19%)
(12,623,501) 100% 16,365,672 100%
(10,7523,32) (85.18%) 10,754,387 32,665,30 14,020,917 (4,869,732) (65.71%) 115.68% 414.19%
(20,828,288) 100% (4,462,616) 1,637,726 100%
No tax paid tax credit given due to loss 100% 100%
Tax paid due to profit
Profit/(loss) After Tax Earnings / (loss) per share basic and diluted
(2,824,890) Rs.(0.55)
9,151,185 Rs.1.79
423.95% 425.45%
Better Better
We have taken FY08 as our base year for the horizontal analysis of WARID Income statement items and there trend in current year and their reason are discussed as follows in detail:
80
VERTICAL ANALYSIS
2008 2009 Remarks
( Rupees in thousand ) Revenue Cost of Services Gross Profit Operating Expenses Operating Profit Other Expenses/Income Profit/(loss) Before Tax Tax Profit/(loss) After Tax 66,336,042
100%
59,239,001
100%
(37,346,869) 56.3% 28,989,173 43.7%
(37,732,282) 63.70% 21,506,719 36.30%
Worse Worse Better Worse Better Better Worse Better
(12,623,501) 19.0% 16,365,672 24.67%
(10,7523,32) 18.1% 10,754,387 32,665,30 14,020,917 (4,869,732) 9,151,185 18.2% 5.51% 23.67% 8.22% 15.45%
(20,828,288) 31.4% (4,462,616) 1,637,726 (2,824,890) 6.73% 2.47% 4.26%
INTERPRETATION OF INCOME STATEMENT ITEMS REVENUE

The reason for decrease in revenue by 10.7% is because of decrease in domestic revenue. International revenue of WARID has increased while the domestic revenue of WARID has fallen due to competition and other economic conditions of the country. Revenue is exclusive of excise duty amounting to Rs 8,611,191 thousand (2008: Rs 7,631,695 thousand). International revenue represents revenue from foreign network operators for calls that originate outside Pakistan and it has been shown net of interconnect cost relating to the other operators and Access Promotion Charges aggregating to Rs. 10,886,794 thousand (2008: Rs 7,758,176 thousand).
81
COST OF SERVICES
Cost of services has shown an increase of 1.03% which is mainly due to increase in inflation rate causing the fuel and power prices to jump up and Foreign operators cost and satellite charges have also shown a remarkable increase.
OPERATING EXPENSES
ADMINISTRATION AND GENERAL EXPENSES
Operating expenses have shown a decline in FY09 by 14.82% which is an significant improvement. This is mainly due to reduction is expenses like Salaries, allowances and other benefits , Repairs and maintenance , Printing and stationery, Travelling and conveyance, Technical services fee, Research and development and Other expenses.
SELLING AND MARKETING EXPENSE
In the decrease of Operating expenses selling and marketing expense has not played any significant role rather these expenses have risen in FY09.
OTHER EXPENSES AND INCOMES

OTHER OPERATING INCOME
Other operating income has shown an increase of 7.82% which has played as major role in this FY09s net re venue.
FINANCE COST
Finance cost of WARID has risen in FY09 by 7.14%. this rise in finance didnt brought any major change in the overall position because the reduction in charges was the major cause of this year positive balances .
TAXATION
We can clearly see WARID havent paid mostly tax in FY08 because of Declining profits in that FY. But in FY09 WARID made a profit and had to pay the taxes.
82
Balance Sheet
Hori ontal analysis
2008 2009
( Rupees in thousand )
Equity an liabilities Share capital an reserves Authorize capital
Remarks
11,100,000,000 A class ordinary shares of Rs 10 each 3,900,000,000 B class ordinary shares of Rs 10 each
Issue , subscribe an pai up capital
111,000,000
100%
111,000,000
100%
Same
39,000,000
100%
39,000,000
100%
Same
51,000,000
100%
51,000,000
100%
Same
Revenue reserves
Insurance reserve
1,683,074
100%
1,683,074
100%
Same
General reserve
30,500,000
100%
30,500,000
100%
Same
83
Unappropriated profit
14,705,300
100%
16,206,485
110.21%
Better
Total
97,888,374
100%
99,389,559
101.53%
Better
Non-current liabilities
Payable to PTA against WLL license fee
100%
1,768,839
--
--
Better
Long term security deposits from 951,618 customers non-interest bearing
100%
990,055
104.04%
worse
Deferred taxation
590,000
100%
2,379,000
403.22%
Worse
Employees retirement benefits
14,240,062
100%
14,142,099
99.31%
Better
Deferred government grants

Total
95,000
100%
1,061,044
1116.89%
Worse
17,645,519
100%
18,572,198
105.25%
worse
Current liabilities
84
Trade and other payables Current portion of payable to PTA Taxation
21731667
100%
26,114,171
120.166%
Worse
--
100%
1,953,971
195397100% Worse
182292
100%
368,180
201.97%
Worse
Total
21,913,959
100%
36,086,322
164.68%
Worse
Contingencies an commitments Total Liabilities an Owner s Equity
1 7,
7,852 100% 15 ,0 8,079 112.08%
Worse
Assets
Non-current assets
Property, plant and equipment Capital work inprogress Intangible assets Long term investments Long term loans
82,800,178
100%
77,730,763
93.88%
Worse
7,892,823
100%
9,836,588
124.63%
Better
3,149,063
100%
3,320,670
105.45%
Better
3,607,439
100%
5,607,439
155.44%
Better
394,943
97,8 , 6
100% 100%
3,332,378
99,827,8 8
843.76% 102.03%
Better Better
Current assets
Stores and spares
4,954,085
100%
5,201,991
105.00%
Better
85
Trade debts Loans and advances Accrued interest Recoverable from tax authorities Other Receivables Short term investments Cash and bank balances
Total
13,366,216 888,309
100% 100%
10,760,974 590,061
80.51% 66.43%
Worse Worse
315,817 1,383,766
100% 100%
821,027 1,059,608
260% 76.57%
Better Worse
1,641,617
100%
698,270
42.54%
Worse
10,344,379
100%
21,017,790
203.18%
Better
4,545,145
100%
11,906,448
261.96
Better
9,60 , 06
100%
5 ,220,2 1
136.91%
Better
Total Assets
1 7,
7,852 100% 15 ,0 8,079 112.08%
86
VERTICAL ANALYSIS
2008 2009
( Rupees in thousand )
11,100,000,000 A class or inary shares of Rs 10 each ,900,000,000 B class or inary shares of Rs 10 each
111,000,000
100%
111,000,000
101.03%
Worse
39,000,000
100%
39,000,000
(74.19%)
Better
Issued, subscribed and paid up capital Revenue reserves

Insurance reserve
51,000,000
52.10%
51,000,000
51.31%
Better
1,683,074
1.72
1,683,074
1.69%
Better
General reserve
30,500,000
31.16%
30,500,000
30.69%
Better
Unappropriate profit
14,705,300
15.02%
16,206,485
16.31%
Worse
Total
97,888,374
71.22%
99,389,559
64.52%
Better
Non-current liabilities
Payable to PTA against WLL license fee 1,768,839
10.02%
--
Better
87
Long term security eposits from customers non-interest bearing Deferre taxation
951,618
5.39%
990,055
5.33%
Better
590,000
3.34%
2,379,000
12.01%
Worse
Employees retirement benefits
14,240,062
80.70%
14,142,099
76.15%
Better
Deferre government grants
95,000
5.38%
1,061,044
5.71%
Worse
Total Current liabilities

Tra e an other payables
17,645,519
12.84%
18,572,198
12.06%
Better
21731667
99.17%
26,114,171
72.37%
Better
Current portion of payable to PTA against WLL license fee
--
1,953,971
5.41%
Worse
Taxation
182292
0.83%
368,180
1.02%
Worse
Divi en payable
--
7,650,000
21.20%
Worse
88
Total
21,91 ,959
15.94%
6,086, 22
24.43%
Worse
Contingencies and commitments
Total Liabilities and Owner s Equity
137,447,852 100%
154,048,079 100%
2008
2009
Assets
Non-current assets
Property, plant an equipment Capital wor inprogress Intangible assets Long term investments Long term loans
82,800,178
84.62%
77,730,763
77.86%
Worse
7,892,823
8.07%
9,836,588
9.85%
Better
3,149,063
3.22%
3,320,670
3.33%
Better
3,607,439
3.69%
5,607,439
5.62%
Better
394,943
0.40%
3,332,378
3.34%
Better
97,844,446
71.19%
99,827,838
64.80%
Worse
Current assets
Stores an spares Tra e ebts Loans an a vances
4,954,085
12.51%
5,201,991
9.60%
Worse
13,366,216 888,309
33.75% 2.24%
10,760,974 590,061
19.85% 1.09%
Worse Worse
89
Accrue interest Recoverable from tax authorities Other Receivables Receivable from Government of Pa istan Short term investments Cash an ban balances
315,817
0.80%
821,027
1.51%
Better
1,383,766
3.49%
1,059,608
1.95%
Worse
1,641,617
4.15%
698,270
1.29%
Worse
2,164,072
5.46%
2,164,072
4.00%
Worse
10,344,379
26.12%
21,017,790
38.76%
Better
4,545,145
11.48%
11,906,448
22.00%
Better
39,603,406
28.81%
54,220,241
35.20%
Better
Total Assets
137,447,852 100%
154,048,079 100%
90
Financial Analysis
Liquidity Position
The liquidity position of the company continues to suffer since a setback in FY08. This trend has been witnessed despite increasing current assets, as current liabilities grew more sharply. The short term borrowings of the company have been mounting for the last few years and this has contributed to the current trend of the current ratio. It may be noted that the company holds large amounts of cash and bank balances compared to the other companies in the business. This may provide an edge to the company over its competitors. Both current and quick ratios have shown a negative trend by 0.31 times and 0.22 respectively. Standard for current ratio and quick ratio is is generally 2 times and 1 times respectively. Although the liquidity stance of the company is fairly satisfactory at the moment, but a continuation of the current negative trend may spell trouble for the company.
Profitability Position
WARID posted a net profit of Rs 9.15 billion in FY09 against last year's net loss figure of Rs 2.83 billion. Earn ings per share have also increased to Rs 1.79 from (0.55). WARID has recovered from the state of loss although the overall telecom sector consumer base is showing a declining effect. It is mainly due to effective marketing strategies adopted by the company . Although WARID maintained its market share in the fixed line, there was a decrease in revenues by 10.7% mainly due to substitution impact of mobile expansion. With increase in profit, the WARID also managed to increase its net cash flows to Rs 16.81 billion compared to last year decrease in net cash flows of Rs 16.24 billion which is a significant recovery of almost double. Considering the cash requirements for restructuring and development plan, the company declared a final dividend of Rs 1.50 per share for the financial year ended June 30, 2009. The total revenue for FY 2008-09 stood at Rs 59.24 billion against Rs 66.34 billion of FY 2006 -07. The
91
decrease in revenue was mainly in the domestic segment due to competition and reduction in tariffs. owever, WARID is making all efforts to boost revenue by improving customer service and launching new services to turn around the situation.
Leverage Position
The debt equity ratio has shown that debt has increased and equity has decreased by 1 percent each. The debt ratios showed an increasing trend in the FY09. The debt to asset ratio of the company had declined considerably in FY07 and FY08, increasing again in FY09 by almost 30% from 27.48% in FY08 to 35.66% inFY09. It is important to note that the company maintains a largely unleveraged capital structure, with the current trend in debt ratios bought about largely by changes in current liabilities of the company. This was brought about mostly due to increase in current liabilities of the company in FY09. The absence of the dividends payable portion of current liabilities in FY08 and its coming back online in FY09 was an important contributor to the trend. Time Interest Earned ratio has also increased to 15.43% in FY09 as compared to -5.26 in FY08. The higher the value the better the firm is able to fulfill its obligation related to interest payable. WARID has certainly shown a tremendous improvement in its ability to make contractual interest payments.
Activity Position
Inventory turnover is improved. And if take a glance of other activity ratios we come to find that Average Collection Period and Average Payment Period have also shown a very positive trend for WARID in FY09 as compared to FY08. ACP has improved to 24 days in FY09 as compared to 29 days in FY08 . Similarly APP has shown a positive trend by 134 days in FY09. Improvements in these areas have played a major role in WARID revival in FY09 after facing a loss in FY08.
RETURN ON OPERATING ASSETS

After facing a negative return in FY08, WARID has made a splendid effort to utilized its assets effectively to generate positive outcome. This has only been possible due to the efficient and effective Capital Management Policies. But on a whole if we
92
make an analysis with the help to the diagram we can clearly se e that return is decreasing gradually, which is very alarming for the organization. WARID should make major changes in its capital management structure and there is a lot of space for improvement.
Market Value vs. Break up Value

Market value of WARID was at peak in FY06.But in FY07 is fall down significantly.. We can clearly see in FY07 the market value of WARID share is facing a downward trend. This is mainly due to profitability of the organization and the amount of dividend paid.
93
LIFE KA NETWORK
THEORIES IMPLEMENTATION
94
SWOT ANALYSIS
SWOT analysis is specifically the study of Strength Weaknesses Opportunities and Threats, out of which Strength and Weaknesses are internal factors whereas Opportunities and Threats are external factors. The SWOT analysis conducted for this assignment is of the new emerging Telecom Company named as Warid Telecom. Warid Telecom launched in Pakistan on 23rd May 2005 but its pre launch operations started working six months before the Launch this shows the planning masters took enough time studying Pakistans Market and is well equipped to serve in the field of service based cellular industries in Pakistan. Strengths:
y y y y
Compatible Prices. Variety of tariff plans Best Vendor Selected Customer Focused Services
95
y y y y y y
Experienced higher Management Easy access to customers Working on staff development strategies Higher Pay structures VAS ( Value added services, including extra features) Effective marketing strategy
Weaknesses:
y y y y
Network issues (signals fluctuation problem) Coverage Issues (city coverage is a big issue) Delayed activities Difficult to convert the customer of the other companies user
Opportunities:
y y y y y y y y y y
A developing market Mergers, joint ventures or strategic alliances Could develop new products Decline of major competitors Technologically better environment New launches Expansion of network coverage area Better Marketing Promotions Needs to develop competitive edges Employee Recognitions programs:
Threats:
y y y y y
Emerging companies in market Unstable political conditions New companies in market High public expectations Low prices of competing brands
96
LIFE KA NETWORK
Conclusion and Recommendations
97
Conclusion And Recommendations
The mobile industry has seen phenomenal growth over the year. This growth is not new to the industry, as previous years have shown substantial growth as well. This growth is a direct result of the increased competition in the mobile industry, resulting into better services at reduced rate. Furthermore, this has favorably affected our economy as a whole, generating revenues for the government, through direct and indirect taxation and creating employment opportunities for the people. The mobile industry of Pakistan is considered by a majority of prospective employees as the best industry for a job. Although the mobile industry has seen substantial growth over the years, many observers feel that the industry may become saturated and will show lower growth rates as a result of increased taxation and the general economic conditions of Pakistan. Although the concerns may be valid to some extent, but with PTA, introducing the 3G platform in the coming years and a major part of our population still without mobile connectivity, especially in distant villages, there is still optimism that the mobile industry will not become saturated and there is still place for competition in the industry. Few years back Telecom sector was on its boom but now as there are 5 operators in the market its hard to survive. The industry is going down now all the networks are trying to maintain there position not going for any sort of expansion. With some improvement at higher level including advisor to CEO, much has improved this year in Warid Telecom market rating. Still Its not so promising. Warid Telecom has potential to capture good market and to give tough time to the competitors. According to the financial conditions of Warid they should try to maintain there position in the market and bring innovative ideas to attract the customers. But to do so they have to take following steps to overcome there weaknesses and avail new opportunities to Gain greater market share and high industrial growth.
98
Recommendations
Warid is offering cheap rates for prepaid and postpaid customers as compared to its
customers but the main area they are lacking is the way they communicate to the customers.
Extra ordinary costs should be reduced. Proper budget should be allocated for each dep artments. Focus on International Trade Network should be enhanced to more cities . There should be consistency in Brand ambassadors, colors, graphics in there print
and electronic adds to create strong brand recognition.
More regional departmentalization sh ould be there, so as to create strong presence

in and market analysis at regional level.
More staff should be hired in some departments specially in Finance and HR to meet
the requirements.
There should be more decentralization and the employees should be encouraged for
there ideas.
Compensation and benefit plans should be revised, as it can be used as a very

important tool for employee motivation.
99
APPENDEX
Internship Completion certificate Letter Of Authori ation Copy of annual financial statements
y Balance Sheet y Income Statement y Cash Flow statement y Statement of changes in equity
100
FINANCIAL STATEMENTS
101
102
103
104
BIBLIOGRAPHY
Web Resources
y Companys website- www.waridtel.com y Magazine Business Economy yGoogle.com yEconomic Survey of Pakistan yBusinessrecorder.com ySecurity and Exchange Commission of Pakistan y Yahoofinance.com
Reports
yPTA Reports
Books
y
Managerial Finance by Lawrence Gitman
Articles
y y y y
Dawn Newspaper Daily Times Newspaper Business recorder Newspaper Flare Magazine
105

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WARID TELECOM PRIVATE LIMITED

DR. LIAQAT ALI

HAILEY COLLEGE OF COMMERCE

UNIVERSITY OF THE PUNJAB

Internship Report : Warid Telecom

Wajeeh-ur-Rehman 8th Semester

May Hi Mercy and Peace Be U empered L rd, t e S

essengers incl ding

ereign f scared) Madina,

rought the last and

final message from Him to a mankind.

Internship Report : Warid Telecom

Interns ip Report : Warid Te ecom

Interns ip Report : Warid Te ecom

2.1 2.2 2.3 2.4 2.5 2.6

3. ORGINAZATIONAL STRUCTURE & STRATEGY

Interns ip Report : Warid Te ecom

4. WARID IN TELECOM MARKET

5. LEARNING AS STUDENT INTERN IN WARID

6. FINANCIAL RATIO & ANALYSIS

8. CONCLUSION AND RECOMMENDATIONS

Interns ip Report : Warid Te ecom

Interns ip Report : Warid Te ecom

INTRODUCTION & B CKGROUND

Internship Report : Warid Telecom

HISTORY OF THE B SINESS

Interns ip Report : Warid Te ecom

Abu Dhabi Group

Interns ip Report : Warid Te ecom

Some Major Investments

Wholly o ne properties an companies

AD Group consists of:

Interns ip Report : Warid Te ecom

Interns ip Report : Warid Te ecom

Interns ip Report : Warid Te ecom

Interns ip Report : Warid Te ecom

Communicating Truthfully Our pride

Integrity Compassi on Fairness Promise keeping

we listen, we care, we feel

Internship Report : Warid Telecom

Interns ip Report : Warid Te ecom

SHORT TERM OBJECTIVES As t company is new t e short-term objectives are as follows:

arid identity while keeping the customers in

arid not just in Pakistan

ith our strengthened

E network we would empower our customers

to create their own life style networks

Internship Report : Warid Telecom

Organizational structure & Strategy

Interns ip Report : Warid Te ecom

Message from the Chairmen

Mr. Bashir Tahir Chief Executive, Dhabi Group

Sheikh Nahayan Mabarak Al Nahayan

Interns ip Report : Warid Telecom

Mr. Lim chu n poh

Mr. Quah ung yang

Interns ip Report : Warid Telecom

Mr. Muneer Farooqui

Mr. Tariq Gulzar

Interns ip Report : Warid Telecom

Mr. Shahza Rauf

Mr. Muhamma Irfan Chau hry

Interns ip Report : Warid Telecom

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