SUI SOUTHERN GAS CO. LTD. SSGC House, Block -14, Gulshan-e-Iqbal, Sir Shah Suleman Road. Karachi-75300. Pakistan PABX: +92-21-9021000. Fax: +92-21-9231550




Aurangzaib Khan

TABLE OF CONTENTS Acknowledgement

INTRODUCTION TO SSGC Introduction SSGC at a Glance Core Business SSGC’s Vision SSGC’s Mission Core Values Future Outlook Hierarchy of Management Distinguishing Features Strategies Company Objectives Organizational Structure

1 2 2 3 3 3 3 4 5 8 10 10
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I am very delightful and gratitude of Almighty ALLAH who bestowed me with patience and persistency in completing my Six weeks of Internship Program at SSGC and in achieving my task fruitfully. Then i would like to extend my gratitude to SSGC HR management for giving me an opportunity to enrich and upgrade my experience and skills. It was quite a great experience for me to work with diversified and literate people and helped me to understand cross-cultural-differences.

having an annual production capacity of over 550. SSGCL transmission system extends from Sui in Baluchistan to Karachi in Sindh comprising over 3.200 KM of high pressure pipeline ranging from 12 . An average of about 378. The company is engaged in the business of transmission and distribution of natural gas besides construction of high pressure transmission and low pressure distribution systems. The distribution activities covering over 1200 towns in the Sindh and Baluchistan are organized through its regional offices.192 and domestic 2.7117 billion is issued and fully paid up. The Government owns the majority of the shares which is presently over 70%.24" in diameter.150 meters. The Managing Director/Chief Executive is nominee of GOP and has been delegated with such powers by the Board of Directors as are necessary to effective conduct the business of the company.040 million (industrial 3. commercial 22. The Company has an authorized capital of Rs.468 million cubic feet (MMCF) gas was sold in 2007-08 to over 2. The company also owns and operates the only gas meter manufacturing plant in the country.448. The Company is managed by an autonomous Board of Directors for policy guidelines and overall control. . 10 billion of which Rs 6.INTRODUCTION TO SSGC INTRODUCTION: Sui Southern Gas Company (SSGC) is Pakistan's leading integrated gas Company.014.877 Km.827 consumers) in these regions through a distribution network of over 31. SSGC's Board comprises of 14 members. Presently.

 Core Business The main activity of the company is transmission and distribution of gas in Sindh and Baluchistan . 1989 following a series of mergers of three pioneering companies. serving the entire Southern region of the country. Sui Gas Transmission Company Limited was formed in 1954 with the primary responsibility of gas purification at the Sui field in Balochistan and its transmission to the consumption centres at Karachi. Karachi Gas Company Limited and Indus Gas Company Limited. these two distribution companies were merged to form Southern Gas Company Limited and later. Today. comprising the provinces of Sindh and Baluchistan. In 1985. Southern Gas Company Limited and Sui Gas Transmission Company Limited were merged to form the Sui Southern Gas Company Limited. half a century of professionalism and progress has made the SSGC one of the largest integrated natural gas transmission and distribution companies in Pakistan. namely Sui Gas Transmission Company Limited. in 1989. Two distribution companies were established in 1955 and were responsible for the distribution of gas to consumers in Karachi and in other towns along the route of the transmission pipeline between Sui and Karachi.SSGC at a Glance: The Company in its present shape was formed on March 30.

Supports the achievements of Company/team goals. while conducting company business professionally. Takes timely and Quality decisions. Solicits and share ideas/best practice with others. Contributes to team effectiveness using people's different skills and styles. Seen & known to be honest. Teamwork: Builds strong relationships within across functions. CORE VALUES Integrity: Keep Company's Interest above self. Demonstrates sensitivity. environment-friendly and sustainable supply of natural gas. ethically and with responsibility to all our stakeholders. community and the nation. Strives for Continuous improvement. . Respond effectively to customer needs. Works well with all type of Peoples and corporate with others. Lives within means. providing quality service by maintaining a high level of ethical and professional standards and through the optimum use of resources. Intellectually hones. Acts in ethical manner. Promote ethical business environment. Arrives at constructive solutions while maintaining Positive working relationships.SSGC’s VISION To be a model utility. Excellence: Makes positive contribution towards the achievement of SSGC's Vision. efficiently. Take effective actions if observers unethical behavior or situation. SSGC’s MISSION To meet the energy requirements of customers through reliable.

political and public). Develops colleagues and team members to improve their skills and performance. competitors. Respects dissent and resolves conflicts fairly. Displays openness and consistency in applying policies & Procedures. Ensures compliance of law. Ensure Optimum utilization of resources. Responsibility to Stakeholders: Stays abreast of change in operating environment that impacts our business (i. Create solutions to make Customer needs.e. Promotes modified approaches. Encourages innovation. regulatory.Transparency: Promotes open environment. suppliers. employees. Technology. . Convert Ideas into actions. customers. markets. Balances short term and long term priorities to maximize on results. Creativity: Comes up with new ideas.

Hierarchy of Management .

The Company is also introducing innovative Pre-paid Gas Meters for convenience of customers. Above all. For speedy and efficient handling of customers’ complaints. queries and suggestions. Pre-paid meters offer such facilities as advance payment and flexible payment and allow people to manage gas consumption at their own convenience.saving valuable time and minimizing errors. For example. technology brings greater benefits to customers. SSGC provides satisfaction of its employees and gives them adequate incentives to provide high quality work. The company undertakes several initiatives to ensure induction and training of professionals with the objective of ensuring high level of professionalism and productivity of its employees. Human Resource Development is one of the top priority areas at SSGC.Distinguishing Features Developing Human Assets SSGC believes that satisfied employees provide Quality service. Edge in Technology Quest for excellence and cutting-edge technology has played a key role in SSGC expansion and strength. SSGC has developed Customer Facilitation Centers in all major towns and large population centers that provide fast and efficient response to customers’ queries and complaints. all SSGC meter reading is now carried out through hand-held computers . . Excellence in Customer Service The SSGC motto is 'Service with a Smile' and SSGC people strive to provide unmatched and diverse services to customers through innovative and progressive ideas in line with best international practices.

Since the pipeline network forms the backbone of SSGC's operations. Enterprise Resource Planning (ERP) software integrates all departments and functions on to a single computer network. A key initiative of this department is the implementation of the Geographic Information System . driving higher performance. the Information Technology Department is rendering strong support to SSGC. . Through the advanced microwave digital network. Maintaining its technological edge. with Microsoft .a computer-based system that effectively provides forecasting data for further strategy development. Today. Realizing the need for integration of IT into core business processes. SSGC has signed a comprehensive enterprise agreement. special steps have been taken towards ensuring maximum efficiency. efficiency and financial viability of new projects. all SSGC offices and facilities remain connected 24 hours a day.SSGC's computerized billing system prints bills through the online network in the entire franchise areas. which accurately simulates the large and complex pipeline network. and with video conferencing facility. Telecommunications Telecommunications plays a vital role in maintaining high operational efficiency at SSGC.the only such agreement by a public sector utility company in Pakistan. SSGC is set to become the most IT enabled Company in the country. such as PL Studio simulation software. Increasing the efficiency of business processes is another priority area for SSGC.

Shikarpur. . Emergency Response Centers (ERCS) ERCs are working at six key locations at Karachi and Quetta terminals. Dadu and Sibi Head Quarters. processes and procedures needed to achieve safe operations are identified. These are fully equipped to deal with any emergency situation in case of transmission gas pipeline rupture/fire resulting from sabotage. wars acts and similar activities. implemented and maintained. Its Health & Safety and Environment (HSE) management system ensures that the standards.Promoting Safety SSGC is committed to the health and safety of its employees and preservation of the environment in its areas of operation. Nawabshah.

 The company identified successfully different layers of change that needed to be managed concurrently for large projects to be implemented on schedule and within budget.  The company has adopted an aggressive approach to empower the executives and to create awareness in the rank and file for changing the routine business processes with people-centric work methodology with focus on moving over to best business practices.  Consistent appreciation in shareholder’s value by increasing the company’s asset base and significant improvement in productivity and efficiency. . developing Human Resources and pursuing overall business excellence.  Customer satisfaction. Optimizing market flexibility and maximizing return on investment from major change initiatives are key success factor for the company.STRATEGIES  The company has moved beyond basic reengineering as it builds and reinforces culture change by creating performance opportunities.  Expansion of distribution and transmission network for enhancement of gas supply to power plants. Within the induction of new. improved business process. innovation. processes and technology. quality services and promotion of service with a smile culture.  The SSGC has pioneered efforts for deployment of a cost-conscious and performance-based culture and empowerment of the employees to provide for achievement and excellent at all levels. industries and commercial sector including supply of gas to previously deprived areas in the domestic sector.  The company has taken the lead in integrating Change Management within its people. an appreciable change in productivity was achieved.

 Improvement in customer services through additional Customer Facilitation Centers.S for business operations and control.I. re-structuring of select departments and implementation of ERP to provide effective M. Business Process Re-engineering (BPR).  Enterprise Information System (EIS) and technology implementation in all areas of business to make and maintain SSGC the most IT enabled company. installation of pre-paid meters.  Human resource development and empowerment of employees through career planning and management / vocational training.  Community support services and environmental protection initiative to meet the national and social responsibilities as a good corporate citizen. .  Improvement in reliability and security system. and improved bill delivery.

. which is headed by the Chief Financial Officer (CFO). OGRA is responsible for regulation. The major portion of the work force consists of technically qualified and skilled personnel. and Finance. Engineering Services.  Transmission pipelines and distribution network and installs other facilities such as metering / billing stations in its system using its staff of technically qualified and skilled personnel. pricing. with the exception of Finance. revenue determination and compliance to service standards. The Board of Directors has the overall responsibility for the management and control over the Company. In 2003. Distribution.COMPANY’S OBJECTIVE The Company aims to supply natural gas wherever there is sufficient load to justify the cost of infrastructure. Commercial. Management Services. which currently are deprived of piped natural gas. the Company adds nearly 75. commercial & domestic) to its customer base and lays hundreds of kilometres. Each division is headed by a Senior General Manager (SGM) assisted by a team of professional staff. In many places the gas network is being expanded to meet economic and social requirements through active funding support from the Federal and Provincial governments. Policy matters relating to the natural gas sector are handled by the GOP.  Every year. ORGANIZATIONAL STRUCTURE The Company is organized into six functional divisions -Transmission. The management enjoys operational autonomy.000 new customers (industrial. the Company launched a comprehensive five-year gas network development and expansion  Plan to connect hundreds of small towns and villages in remote areas of Sindh and Balochistan.

PERSONAL DATA: Father Name Date of Birth NIC No: Marital Status Religion Nationality MUHAMMAD AKRAM NASIR 16th AUG 1988 54302-8436408-5 Single Islam Pakistani Cell No: Email Address: Address: 0300-3895584 Flat A-505 Rabi Square Khalid bin Waleed road Khi. .

OVERVIEW OF THE FINANCE DEPARTMENT FINANCE Finance Treasury Accounts Payroll Cash & Bank Cost & Revenue Budget Insurance Loans Fixed Assets Payments Investments MIS Gas Purchase Gas Sales Distribution System Transmission Project Taxation Financial Feasibilities Revenue Control .

Balances considered bad and irrecoverable are written off when identified. leasehold land and capital work in progress are stated at cost  Depreciation on compressor. if any.  Stock of Gas in transmission pipelines is valued at lower of cost determined under the weighted average basis and net realizable value whereas the materials for meter manufacturing division is valued at lower of moving average cost and net realizable value. Property. Goods in transit are valued at cost incurred up to the balance sheet date Trade Debts:  Trade debts are carried at cost less provision for doubtful debts. Stock-in-trade:  The stock in trade comprises of Gas in pipelines and Meter manufacturing division. plant and equipment except freehold land. Plant & Equipments:  Assets are not revalued and historical cost is taken into account. . if any. It is charged from the dates these projects are available for intended use upto the date these are disposed off.MAJOR ACCOUNTING POLICIES Property.  Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Freehold land. leasehold land and capital work in progress are stated at cost less accumulated depreciation. Stores. Spares and Loose Tools:  These are valued at cost determined under the moving average basis less impairment losses. transmission lines and other operating assets is calculated under the straight line method over their estimated remaining useful lives.

.Trade and Other Payables:  Liabilities for trade and other payables are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received. Deferred Credit:  Amount received from customers and the government as contributions and grants for providing the service connections. extention of gas mains. laying of transmission lines. Revenue Recognition:  Revenue from Gas sales is recognized on the basis of gas supplied to customers at rates periodically announced by the Oil and Gas Regulatory Authority (OGRA).  Deferred credit income is amortised to the profit and loss account over the useful life of the related assets. etc are deferred and are recognized in the profit and loss account over the useful life of the related assets. Dividend income on equity investments is recorded on accrual basis.  However the company is required to earn a minimum annual return before taxation of 17% per annum o the net average operating fixed assets (net of deferred credit) for the year. Income earned in excess or short of the above guaranteed return is payable to or recoverable from the Government of Pakistan and is adjusted from or to the gas development surcharge payable to or receivable from GoP. The meter rental is recognized monthly at specified rates for various categories of customers on an accrual basis whereas the sale of meters and gas condensate is recognized on dispatch to the customers.

 Gas customers’ deposits represent Gas supply deposits based on an estimate of three months consumption of gas sales to industrial and commercial customers while deposits from domestic customers are based on the rates fixed by the  Government of Pakistan.  Security deposits from contractors are free of mark-up and refundable on the cancellation of contract. These deposits are repayable and adjustable on the disconnection of gas supply.Long Term Deposit:  Long Term deposits consist of security deposits from Gas customers and gas contractors. .

Whatever I attained there is elaborated as under: 1) FIXED ASSETS 2) BID BOND 3) STORES 4) COST AND BUDGET 5) GAS PURCHASE .AREAS OF WORKING I sought opportunity to join SSGC to upgrade my skills in multi-dimensional approach to the section of the Finance Department.

Whenever a budget is to be prepared for any department. the budget team examines it & discusses all particulars with the related head of department & staff giving special consideration to the justification of fixed asset requirement & funds available with the company. which may be considered to be necessary as that may be defined to latter period. the budget section notifies the department to prepare list of assets required by them & forward it to the budget section. the budget team may reduce the requirements of fixed assets of the department.Fixed Asset FIXED ASSETS PROCESS FUNCTION To maintain and control the fixed asset of the company Working of Fixed Asset: Budget Proposal The budget section of finance department prepares capital expenditure budgets annually for all the department of SSGCL. At this stage. . On receiving the requirements.

the board of directors’ grants approval to the agenda and now the budgets are authorized to be followed.D for its approval the case of transmission project which exceeds Rs. which is reviewed by finance committee. then agenda is prepared by budget section. When the budgets for all the departments have been finalized and approved by MD. Each department is now intimated through inter departmental note (along with a copy of their budget) that the budget has been approved.The budget [in the form of budget proposal] is now sent to GM & SGM for its approval/changes which may be made by them & finally to the M. same procedure is followed for others. .100 million approval is then sought from the government by filing PC-1 form & after its approval .

a supplier is selected (all such procedures documented in Evaluation Report) and then Purchase order (PO) is prepared and sent to supplier. FAR contains details of assets required by the department. All assets are received by the KT stores department. Account payable department enter invoice in AP module which match invoice with material receiving statement and following entries are generated: AP accrual account Liability account Asset cost account Asset clearing account xxx xxx xxx xxx .Fixed Asset purchasing process: In order to purchase an asset. The procurement department invites quotations through tender (if not available in store) and on the basis of commercial and technical evaluation and lowest bidders. where quality inspection is conducted (however not documented) and then a Material Receiving Statement (MRS) is generated and a copy of which is forwarded to the finance department. following entry is generated: Asset clearing account Inventory receiving account xxx xxx When invoice received by finance department. which should be approved by the head of that department. The FAR is now forwarded to Procurement department. where Deputy Manager checks whether the FAR falls within the budget. Following entry is generated: Inventory receiving account AP accrual account xxx xxx On delivery of asset to the concern department. fixed asset requisition (FAR) is required to be filed by concerned department.

DGM and GM/MD Supply of assets by the supplier at Receipt & Despatch section at Karachi Terminal Requisition sent to the procurement department for order placement Asset delivered to the user / requisitioning department Details incorporated in the relevant records at month end . following entry is generated: Liability account Bank Fixed Assets Purchase Process: xxx xxx Fixed Asset Requisition sent to the inventory section duly authorised by the departmental head Requisition verified by the inventory section and approved by CM.Depreciation expense Accumulated depreciation xxx xxx At payment of invoice.

which is to be retired for verification of the condition of the asset. working for its depreciation starts. After inspection the report sent to the fixed asset section along with ARA. That inspection team inspects the asset.g. Depreciation rates differ for different assets. are deleted from the books through approval of the management. different between assets in books and its physical existence etc. DGM and MD.g.5% of its cost. After approval the asset sent to store at Karachi Terminal (KT) for disposal. transfer of an asset from one unit to another. It is approved / disapproved on the basis of inspection report by GM.Depreciation and Adjustment Process Once an asset has been capitalized. And some old assets. The company uses the straight line method of depreciating except for meter plant. whichever is higher. In case an employee of the company buys it. 1 st the Assets Retirement Requisition (ARA) is prepared by the user department and it is sent to the fixed asset section of finance to retire that asset. only those asset which have a zero book value can be retired. which are fully scraped and not present physically. . it is sold on written down value or at 7. After checking the book value the inspection team is to be formulated. Retirement of the Asset After the completion of life of asset which is fixed by company we retire it. In the certain situation we call for making adjustments e. The company SSGC’s follows certain policies for the retire of asset e. It even differs for same assets in different cities. where reducing balance method is used. Full year depreciation is charged for the first year regardless of its purchase data.

DGM and MD Inspection of the asset to be retired is conducted for verification of the condition of that asset Section Inspection report sent to the inventory along with ARA .Fixed Assets Retirement Process: Asset Retirement Advice prepared by the user department and sent to the inventory section Asset sent to store at KT for disposal Retirement advice is approved / disapproved on the basis of inspection report by GM.

BID BOND SECTION PROCEDURE OF BID BOND SECTION Function Performed by the Bid Bond Section: Major functions are performed by the Bid Bond Section includes:     Retaining of Bid Bond amount Releasing of Bid Bond amount Retaining of Performance Bond amount Releasing of Performance Bond amount .

If the pay order amount is more than RS. And the bid data to punch on computer for onward records. After the fifteen days or one month when tender will open by the Material Management department they are selected the lowest bidder or supplier and prepared an evaluation report (comparison of three bids) on the basis of bid received from various suppliers and sent to General Manager of Material Management for approval. 25. Before the expiry of the Performance Bank Guarantee and we have written claim letter to the bank and copy forwarded the Material Management department and also fortnightly MIS reports sent to the concern department. Here. Working in Bid Bond Section: The work of bid bond section starts after the issuing of tender by the Material Management department. After the completion of retaining of Bid Bond. Daily 50 Banks Guarantee and Pay Order to punch and check with the documents. When tender will issue from the Material Management department for purchasing the material which are required by the company the certified and interested supplier come forward and offer the bid rate and pay the 2% bid amount of that offered rate in the form of pay order or bank guarantee to the bid bond section in the name of company.Purpose: To record the bidder / supplier of the bid bond and performance bond and also maintain the releasing of bid bond and performance bond. (Properly record maintained on computer and manually). Once the evaluation report is approved by the GM (MM) the releasing letter will issued by the GM (MM) to bid section for release the bid amount to the unsuccessful bidder. company will request the selected bidder to submit the 10% performance bond as a deposit in the name of company in the shape of Pay Order or Bank Guarantee. In case of Performance Bank Guarantee Bid bond section send the letter to bank for confirmation and after confirmed by the bank the letter to be attached with the Performance Bond Guarantee. And bidder also requested to the .000/= or more will be encashed in accordance with the prevailing company policy in the Cash Bank section and after encashed to refund the same as advise receipt by Material Management. All Pay Orders RS. in Bid Bond Section maintain the record of each bidder / supplier. 25000/= the company will encash pay order.

and GM (MM) department has request to the Bid Bond Section to release the bid bond and sent to the Bank and the Bidder/Contractors by TCS and also copy forwarded to the Material Management department. After the verification of material and projects bid bond section retain the performance bond amount along with projected amount by cheque. Original Contracts / Agreement and Performance Bond / Bid Bond receipt from Material Management department we are punch on the computer and properly record and retain in safe custody. After release update the filling records.GM (MM) for releasing of bid amount. After completion the project the supplier issue the letter to the Material Management for payment of the received material and performance bond. . Daily 50 Bank Guarantee and Pay Order release.



And here we go in the detail of these stores by using tables. Working: Extracting stores balances in ERP. company has several stores ate different locations. 2. Preparation of reports of stores stock on quarterly. 4. maintain and control the records of every kind of stock/material placed in stores at different locations of company. Functions Performed By Company Stores: Major functions are performed by company includes:     Receipt of stores Issuance of stores for Distribution Projects. Checking of stores balances with ledger balances on ERP. Issuance of stores for Transmission Projects. Here. Reconciliation store stock loan balances with ledger balances for the more accuracy. Issuance of stores for Meter Plant Projects. in SSGC Head Office record of each store all location in company is controlled and checked for proper receipt and issue of items. half yearly and annually. 1. . In order to fulfill these functions . 3.STORES ACCOUNTING Function: To check the store balances. Checking of miscellaneous reports of stores balances for confirmation.



COST AND BUDGET SECTION COST & BUDGET SECTION Function: The major function of cost and budget section is cost controlling and maintaining of revenue expenses and also accumulation of revenue cost which is incurred during the period. And another function of this section is to calculate the cost of operating and administration section.. and planning for allocating the budget to the individual department. Purpose:  To minimize the extra cost .

Then this section brings together these proposals according to organizations wise and sends these proposals to the board for the approval. After that we are uploading the budget. The process of uploading budget is shown below: . The board makes necessary changes and approves the compiled budget and report will send to every department. The 1st step of budget scheduling is “Proposal”. This section send proposal to every department of company in order to know the requisite budget by the departments. And approved proposals are loaded in ERP system (Oracle Financial). Budget planning begins before the distribution of budget for the new fiscal year. To operate the organization effectively and efficiently  Closely watch t the individual department  To run the organization smoothly  To control the cost of operating and administration. The section checks their budget proposal and compare with previous budget. The SSGC provide the authority to every department to make their budget like wise. In case of big difference between the current and previous budget the budget will not approved before the justification of respected department. Budget Planning Process: Cost & Budget is one of the hub section of finance department. Every department suggest their required budget for the new fiscal year along with the details where they want to spend budget and send the proposal back to cost & budget section. The budget is to be made according to year wise but it is issued quarter wise. This section is indispensable because planning & cost both are the backbone of every successful organization and this section is first and foremost responsible for the budget planning. it means department wise and it is controlled and maintained by the cost and budget section in finance department.

ADI allows the user to create and modify budget in an Excel spreadsheet which can then be uploaded to Oracle General Ledger. the people of the respective department are provided with their own user ids and password. For maintaining security.Uploading Budgets: Usually budget is uploaded using Application Desktop Integrator (ADI). Access is allowed only to limited individuals .

For uploading the budget we first need to select the journal type i. budgeted journal and the numbers of Journal Before any data can be uploaded. the sheet needs to be made unprotected first by selecting the “Unprotect Sheet” option from the tools menu. .e.

Start the budget upload process by selecting one of the following options  Start if no errors in upload  Start regardless of errors . After that decide whether to upload All Rows or Flagged Rows (those marked with Y). we have to choose Upload to Interface from the Ledger icon in the ADI toolbar.While viewing the budget worksheet that we want to upload.

Release of budgets completes the process of budget allocation. After having complete satisfaction the cost & budget section release or allocate the budgets in the accounts of every department. The expenses are debited in the accounts causing the budget accounts credit.Choose the ok icon to initiate the process When the process completes the system will notify of the completion status. these are checked to make sure that budgets are correctly allocated in their accounts. After the uploading of budgets. In the new fiscal year the departments perform their activities and incur expenses. .

The cost and budget section checks that from which department the required department to take budget and also checks that is that department budget is available or not and also check the required department is really needed for that material or not. After the approval from CFO they sent that request to cost and budget section for further procedure. 1st the required department sends the appeal for Additional Budget or Re-appropriation to CFO for approval of required material. In order to solve this problem which are occurred due to shortfall in budget. After checking and confirmed these things the cost and budget section transfer the budget from the required department is needed through ERP.Additional Budget & Re-appropriation: This Re-appropriation form will use due to shortfall in budget or the departments spend their budget before the specified period or that project is not mentioned in their budget for whom they are sending the requisition. .



. The company receives gas from different oil and gas fields located in Sindh and Balochistan. excise duty on total volume of gas purchased from such field is paid to the field operator. Karachi Gas.Introduction The Sui Southern Gas Company Limited (the “SSGC”) is engaged in the business of gas transmission and distribution in Sindh and Balochistan provinces which are the franchised areas of the company. The fields are owned by either one or more oil and gas exploration and production companies. However. The core businesses of the company are transmission and distribution of natural gas. Indus Gas and Sui Gas Transmission Company. Sales and Purchases The gas sale and purchase between gas producer and buyer is governed by the terms of Gas Sales Agreement (GSA). The present corporate status of the company was emerged as merger of three company’s viz. which is signed by the joint venture partner(s) as Seller(s) and SSGC as Buyer and the Government of Pakistan (the “GOP”). All the agreements with foreign gas producers have also been signed by the Government of Pakistan (GOP) as guarantor. Besides operations. the GSA also provides payment procedures. The natural gas received from these fields is transmitted to different cities and towns of Sindh and Balochistan and distributed to consumers. legal and other commitments. The non-core businesses include purification of natural gas. and special projects like construction contracts for laying of pipelines. Each company is called joint venture partner having respective share in the joint venture in accordance with the terms of Petroleum Concession Agreement. The operator of the field in accordance with the GSA prepares monthly gas sales invoices and sends the same to SSGC on behalf of all the seller partners. The payment of gas bills and sales tax invoices is made to each seller member in accordance with their shareholding and remittance instructions mentioned on the invoice. of which the oldest company was formed in 1954. Any gas field owned by two or more companies is called a joint venture where one company acts as operator on behalf of other companies. and designing implementing gas transmission and distribution projects. manufacturing and sale of domestic gas sales meters. sales of condensate as by-product. who actually discharges this liability on behalf of the joint venture.

Therefore sales tax is applicable at the rate of 16% on the value of supplies. 1944 is Rs 10% of MMBTU Excise Duty = Rs. 1 st July 2011 through Budget finance bill’. The rate of excise duty in accordance with provisions of the Central Excise Act. which includes wellhead value together with all duties. 10 0f MMBTU Sales Tax The GOP brought the gas companies under the sales tax regime w. Excise Duty Excise duty is charged on the volume of gas produced during the period.Invoices of Gas Purchases The invoices of gas purchase mainly include following three elements: Gas Charges Gas charge is the wellhead value of gas volumes purchased by the SSGC multiplied by the notified gas price. taxes. Therefore gas prices applied in the gas bills should match with the notified gas price as per SRO issued by the Oil & Gas Regulatory Authority (OGRA).f. Government of Pakistan for the respective field.e. charges and levies . The gas prices are regulated by the GOP and notified through SRO generally applicable for a period of six months.

4. . The Section has specific responsibility for the following functions: 1. 5. Receiving gas purchases invoices from various gas companies. GCS-II etc. Preparation of journal vouchers to record cost of gas purchases Receiving statements of gas purchase / utilization from Gas Control section of Operations department -KT like GCS-I. 6. 7. Independent calculation of gas bills and checking thereof.Responsibilities the Gas Purchase Section prepares documents of original entry like. Preparation of memo for Measurement department for verification of gas off takes. Verification of gas prices with the gas price notifications. 3. Preparation of journal vouchers to record cost of gas / gas consumed internally. 2. a) b) c) d) Cheque payment vouchers Bank payment vouchers Gas bills / invoices (Supporting documents) Any other related document of accounting record (double entry) and maintain record thereof. obtain verification of gas off takes from measurement department and prepare various schedules.

Processing payments of local gas companies in local currency and preparation of bank / cheque vouchers. Reconciliation between the gas supplier record and SSGC record. 17. 12. Schedules of cost of gas and ledger accounts of Suppliers. Processing foreign currency payments of foreign gas companies through form 'M' to seek approval of the State Bank of Pakistan for release of foreign exchange and prepare bank transfer letters and bank voucher Schedules of input sales tax (sales tax register) for claiming input sales tax against output sales tax of the company. 18. 16. 10. 11. Reconciliation of gas off takes received in transmission system and gas transferred to the distribution system (unit-wise). Compliance of provisions of GSAs and Income Tax and Sales Tax laws. Processing local currencies payments of foreign gas companies in respect of excise duty.8. 9. Correspondence with the gas producing companies. Preparation of revenue budget of gas purchases. 14. sales tax and prepare bank / cheque vouchers. 15. Preparation of gas purchases schedules. . 13.

SUGGESTION & RECOMMENDATION  There should be conferencing among the internee at Conference Room. Where by internee should be assigned projects in groups under the supervision of mentor and given case studies in order to take ward in financial decision making which will enable us to deal with any desirable financial situation. because of to improve the work efficiency of contractor.  There should be the training process for contract based employees.  All executive should diversify their knowledge to every staff member. .  Debate declamation contest should be held among the Internees on suitable day.

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