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In The name of Allah

The most merciful and the most Beneficent


Who guide me and help me at every step and every moment
to complete this report.

Internship Report of
PAKISTAN TELECOMUNICATION LIMITED
(PTCL)
Submitted To
The Department of Business Administration
University of Gujrat

MBA 4th semester

Masters of Business Administration

Faculty of Management and


Sciences
University of Gujrat, City
Campus

DEDICATION
At first dedicating this work to Almighty,

Without his mercy and sympathy I was not able to accomplish this work.
I also dedicated this work to my

Because their Prays & worm Hugs made me able


To achieve this success.
I also want to dedicate this to my honorable, Respectable
Polite & sincere.

Because they always guided me towards right path of success

PREFACE

This report is the practical part of the most vital practice of our MBA program. The
sole objective is to familiarize the student with the practical manipulation of
business Organization. This

report

has

been written

to know

how

big

organizations like PTCL Manage their teams to achieve their common goals.
In the first phase of the report there is the general introduction about the
company and then different terms have been explained, then the mission, vision ,
different services and different strategies of the organization have been explained.
In the next part, management system of the firm have been done by
the help of which it is identified that what are the major authorities under the
hierarchy of the company and who report to whom.
In the third, fourth and fifth part of the report there is a complete description
about the management styles, production facilities and marketing mix of the company.
Part six, seven and eight contributes towards the important aspects of this
report by describing the finance and accounting system of the company in detail and
also the training program under which I have explained the daily activities of my
work as an internee in PTCL.

ACKNOWLEDGEMENT

In the Name of Allah, the Most Beneficent, the Most Merciful. All praise and thanks
to Allah, lord of the universe and all that exists. Prayers and peace is upon His prophet
Mohammed the last messenger for all humankind.
First, I would like to express my sincere gratitude and thanks to ALLAH for his
guidance throughout this work and for all the blessings he has bestowed upon me. My
deep gratefulness to my country Pakistan where I grew up and learned the first lessons
and experiences in my life, and I hope that I can pay it back some day. My thanks are
as well for University of Gujarat, where I learned how to do research.
By the grace of almighty Allah I came into a position to make a report on "Pakistan
Telecommunication Company Limited". Actually this report is also the result of help
& guidance which I received from my teachers and PTCL staff who gave me lot of
information and guidance in making this report.
It would not be a justice in presenting this report without mentioning the people
around me who have been inextricably related with the completion of this report. For
assisting me in all respect and regard to complete this report my heartfelt thanks to my
supervisor Mr. Irshad Hussain who enriched me knowledge with wealth led ideas to
pursue and power of writing this report. It could not have been possible to accomplish
this report without his thoughtful guidance and expertise. It is also a great pleasure to
record honorable regards to all those who helped me a lot in learning and enhancing
my knowledge and ability during the internship. I am also thankful to Mr. Bilal tariq
for guiding me in this internship program.
Many people contributed experience, knowledge and advice, so many in fact that it is
simply not easy to name them all. Therefore, I also wish to thank here the other staff
of PTCL and those who had to endure the most during the preparation of this report,
which took place at add hours of the early mornings, late nights, and weekends. I also
offer heartiest thanks to all the persons who guided me and encouraged to complete
this task successful.

Executive Summary
PTCL is an existing business, which has existed for decades. It went through some
major restructuring eras of which 1996 and 2006 are the most prominent. PTCL was
incorporated in 1996 and the new management took control of PTCL in 2006 by
buying its 26% ordinary shares. Our main focus in this report is to check the working
of finance department of PTCL. PTCL today offers the widest range of services to its
customers. PTCL has laid an Optical Fiber Access Network in the major metropolitan
centers of Pakistan and local loop services have started to be modernized and
upgraded from copper to an optical network. This report is being started with the brief
and complete introduction of organization, its historical background, its services and
its products.
Pakistan Telecommunication Company Limited (PTCL) is the primary provider of
Telecommunication services in Pakistan. The range of

services include basic

telephony, telegraph, fax, telex, Public data, Internet, E-mail, ISDN (Integrated
Services Digital Network), Universal Access Numbers

(UAN), and

other value

added services. Pakistan Telecommunication Company Limited is a professionally


managed company and has initiated measures, with active support of the Federal
Government, to inculcate a corporate culture that benefits company. Pakistan
Telecommunication Company Limited believes that it has an inherent potential that it
can exploit to emerge as an important and active business entity.
Pakistan Telecommunication Company Limited has some basic strength and the
potential that needs to be exploited into real business opportunities. The Directors of
the Company feel that a firm and unwavering commitment towards provision of a
complete range of market driven telecommunication services to its customers using
state of the art technology proven products and a customer care approach is essential
in a rapidly expanding telecom market. The radical change from a monolith state
controlled culture to an open market competitive environment. The customer is
becoming and more conscious of the value of telecom services in an improving
business environment.
I have described the overall working of PTCL regarding all departments at regional
level and cooperate level. I have completely observed the company management
system in detail, its management styles, procedure of operations. I have a
comprehensive analysis of the marketing of PTCL in which I completed the seven Ps

of marketing mix. I have also done financial analysis of PTCL, its accounting and
finance procedures with the help of trend analysis and ratio analysis. I have also done
a comprehensive analysis of the working of HRM department and details of the
employees their incentive, benefits, and compensation. Find out their weaknesses and
give suggestions for improvements.

Human Resource Management practices

followed by the company were seen practically whether the company adopted them
according to the international labor law standards or not.
My Internship report contains all the information about my work experience in PTCL.
As an Intern, I spent good time in learning. I learnt to deal with different situations
and have experiences of the organizations working environment which affects an
employee performance and attitude towards work and had good time in learning and
performing duties as finance Intern. Confidence, on time decision making,
consistency, hard work, team work, seeking success out of dark, innovation, creativity,
organizational survival and customer handing techniques are the key learnings out of
my internship and I would like to say that it will be one of my best skills that would
remain with me and help me in the coming life. I would like to highlight this that my
experience with PTCL was very memorable and full of leanings where I found lot of
positive changes in my attitude learning and behavior. Finally some suggestions and
recommendations are given to organization in this report. A central problem in the
system of PTCL is lack of contact & feedback from & to employees there is a lack
of co-ordination between different departments of the organization as well as into
a specific branch. Another problem is lack of trained staff & political pressure for
transfers/postings etc on middle management. Likewise Lack of automation and
state-of-the-art latest IT technology for correspondence between the contents of the
company causing the delay in work and negatively affecting the overall performance
of the company

1. Introduction of the organization


The telecommunications industry is at the
forefront of the information agedelivering voice, data, graphics and video at ever
increasing speeds and in an increasing number of ways. Whereas wire line telephone
communication was once the primary service of the industry, wireless communication

services and cable and satellite program distribution make up an increasing share of
the industry.
The largest sector of the telecommunications industry continues to be made up of
wired telecommunications carriers. Establishments in this sector mainly provide
telephone service via wires and cables that connect customers premises to central
offices maintained by telecommunications companies. The central offices contain
switching equipment that routes content to its final destination or to another switching
center that determines the most efficient route for the content to take. While voice
used to be the main type of data transmitted over the wires, wired telecommunications
service now includes the transmission of all types of graphic, video, and electronic
data mainly over the Internet.
These new services have been made possible through the use of digital technologies
that provide much more efficient use of the telecommunications networks. One major
technology breaks digital signals into packets during transmission. Networks of
computerized switching equipment, called packet switched networks, route the
packets. Packets may take separate paths to their destination and may share the paths
with packets from other users. At the destination, the packets are reassembled, and the
transmission is complete. Because packet switching considers alternate routes, and
allows multiple transmissions to share the same route, it results in a more efficient use
of telecommunications capacity as packets are routed along less congested routes.
Wireless telecommunications carriers are deploying several new technologies to allow
faster data transmission and better Internet access that should make them competitive
with wire line carriers. One technology is called third generation (3G) wireless access.
With this technology, wireless carriers plan to sell music, videos, and other exclusive
content that can be downloaded and played on phones designed for 3G technologies.
Wireless carriers are developing the next generation of technologies that will surpass
3G with even faster data transmission. Another technology is called fixed wireless
service, which involves connecting the telephone and/or Internet wiring system in a
home or business to an antenna, instead of a telephone line. The replacement of
landlines with cellular service has become increasingly common because advances in
wireless systems have provided data transmission speeds comparable to broadband
landline systems
.

2. Overview of the Organization


2.1 History of the organization
Pakistan has made steady progress in expanding telecommunication networks and
services in recent years. In Pakistan this industry had few big giants in the past with
PTCL being the sole provider of landline telephone service in the country. At present
the organizations principal activity is to provide telecommunication services all over
the country. It offers both domestic and international services throughout Pakistan.
PTCL also manufactures telecommunication related equipment.
Pakistan Telecommunication Company Limited had exclusive rights to provide basic
telecom services in Pakistan till the end of year 2002. With the announcement of
Deregulation Policy by the Government of Pakistan in 2003, PTA has issued licenses
for basic telephony to the private sector in Pakistan who will be competing PTCL, the
incumbent. From the humble beginnings of Posts & Telegraph Department in 1947
and establishment of Pakistan Telephone & Telegraph Department in 1962, to this
very day, ours is a story of commitment and vision.
PTC set sails for its voyage of glory in December 1990, taking over operations and
functions from Pakistan Telephone and Telegraph Department under Pakistan
Telecommunication Corporation Act 1991. This coincided with the Government's
competitive policy, encouraging private sector participation and resulting in award of
licenses

for

cellular,

card-operated

payphones,

paging

and,

lately,

data

communication services. Pursuing a progressive policy, the Government in 1991,


announced its plans to privatize PTCL, and in 1994 issued six million vouchers
exchangeable into 600 million shares of the would-be PTCL in two separate
placements. Each had a par value of Rs. 10 per share. These vouchers were converted
into PTCL shares in mid-1996.
In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis
for PTCL monopoly over basic telephony in the country. It also paved the way for the
establishment of an independent regulatory regime. The provisions of the Ordinance
were lent permanence in October 1996 through Pakistan Telecommunication
(Reorganization) Act. The same year, Pakistan Telecommunication Company Limited
was formed and listed on all stock exchanges of Pakistan

Since then, PTCL has been working vigorously to meet the dual challenge of telecom
development and socio-economic uplift of the country. This is characterized by a
clearer appreciation of ongoing telecom scenario wherein convergence of
technologies continuously changes the shape of the sector. A measure of this
understanding is progressive measures such as establishment of the company's
mobile and Internet subsidiaries in 1998.
As telecommunication monopolies head towards an imminent end, services and
infrastructure providers are set to face even bigger challenges. Pakistan also entered
post-monopoly era with deregulation of the sector in January 2003. On the
Government level, a comprehensive liberalization policy for telecom sector is in the
offing.
PTCL is in full awareness of the same, and future policies feature a strong conviction
of healthy competition.
The company is in process of enhancing organizational and business proficiency
through vertical integration and horizontal diversification. At the same time, crossnational ownerships, operations and partnerships are being evaluated with a view to
developing and diversifying the business.
Deregulation policy:
Telecommunication de-regulation policy (Policy) has been
prepared in line with Governments objective to de-regulate and liberalize various
sectors of the economy. The Policy applies to opening up of the fixed-line
telecommunication sector. The exclusive rights of Pakistan Telecommunication
Company Limited PTCL to provide basic telephone services (local, long distance,
international and leased line services), which it enjoyed under The Pakistan
Telecommunication (Re-Organization) Act 1996 (Telecom Act 1996), have expired
since 31 December

2002.

Restructuring of PTCL:
The governments efforts to restructure and privatize PTCL
have been on-again off-again since 1991. It had an offer in the late 1990s for 26
percent equity, reputedly totaling $3 billion, but held out in negotiations and
ultimately missed the unique global market window at that time. Since then, it has had
difficulty attracting potential buyers.

Investors have been concerned about political risk, and appropriate support from the
government to transform the utility into a commercially-oriented corporation. With
fortunes rising in the local telecom sector, the government hoped to make
privatization of the company a landmark deal for broader reform of the economy. A
successful deal would demonstrate the governments increasing support for market
capitalism and, it was hoped to, boost anemic levels of direct foreign investment.
PTCL and the government were contemplating different strategic options for
restructuring. Plans were vetted for both a geographic and functional split of
operations. Analysts believed the most likely scenario is a break-up into three new
companies, tracking with the firms largest business units: local, long distance and
mobile. This approach mirrors the policy environment fashioned for new competitive
entrants. From the government perspective, breaking up PTCL prior to a sell-off will
help curtail the market power of any one single service provider, thereby stimulating
competition.
Unbundling the sale was also likely to increase revenues for the government. The risk,
of course, was that the mobile company, PTML (branded as Ufone), was
disproportionately more attractive than the other businesses. According to AKD
Securities, PTML's contribution to PTCL's total revenues was expected to rise to
12.5% over the next five years and was assumed to contribute 39% of PTCLs
overall revenue growth. Future growth of mobile, both in terms of subscribers and net
revenues, was considered to almost certainly outstrip demand for fixed line services.
The target was to sell up to a 26 percent stake in PTCL; the government held 88
percent of shares. Some estimates placed the value of the trance at around $1 billion.
PTCLs net profit for the year ending June 2003 was 23 billion rupees ($400 million).
New buyer would gain management control.

Privatization of PTCL:
PTCL was sold to Escalate at a loss of $394 million with the
share price reduced from the original bid of $1.96 per share to $1.66, according to a
report. The original bid offered in June 2005 by Etisalat priced PTCL at $ 2.599
billion while the revised bid approved by the cabinet in March 2006 valued the

company at $2.205 billion. However, the government denied giving any concessions
to Etisalat. Officials said the price of 26 percent PTCL shares remained the same i.e.
$2.6 billion, and then any lowering of bid price in the revised agreement approved by
the cabinet in March. The official documents state that the accumulated bidding price
in the revised bid came down to $2.205 billion against the original Etisalat bid of
$2.599 billion, said a report in the Gulf Today.
The PTCL privatization agreement with Etisalat allegedly inflicted a further loss of
billions of rupees to the national exchequer besides unprecedented concessions
offered in the long term, in direct conflict with Article 30 of the Public Procurement
Rules 2004, it said. By far, the PTCL has been the highest profit earning state-owned
company with real-estate assets worth billions of rupees across the country including
commercial plazas, residential colonies and exchanges.
According to the government documents, the Share Purchase Agreement (SPA) of the
PTCL with Etisalat lapsed in September 2005 after the non-payment of the dues by
the winner bidders.
Brief History of PTCL:
1947 Posts & Telegraph Dept established
1961 Pakistan Telegraph & Telephone Dept.
1990-91 Pakistan Telecom Corporation.
1995 about 5% of PTC assets transferred to PTA, FAB & NTC.
1996 PTCL Formed listed on all Stock Exchanges of Pakistan.
1998 Mobile (Ufone) & Internet (PakNet) subsidiaries established.
2000 Telecom Policy Finalized.
2003 Telecom Deregulation Policy Announced.
2006 Etisalat Takes Over PTCL's management.

Present status of the organization:


After having brief introduction from past end of PTCL
now we move towards the current situation of the company .In this part focus will be
on the Structure of organization Technical & operational Net work Services provided
by PTCL Financial front of PTCL Competitors and subsidies Structure of organization

An Organizational Structure clarify the roles of personnel of an Organization and to


determine who has to do what task, which is responsible for what, objectives to be
achieved, who report to whom and to remove the obstacles for performance caused by
confusion and uncertainty of job assignment as well as to make easy decision- making
and communication networks reflecting and supporting organization objectives. The
head of Pakistan Telecommunication Company Limited is called President. Then
come the SEVPs (Senior Executive Vice Presidents), i.e. SEVP(Finance), SEVP
(Operations), SEVP (Technical), and SEVP (Human Resource Management), SEVP
(Marketing & Business Development). Then there is a chain of Executive
Vice- Internship Report Presidents (EVPs) like EVP (Finance Central), EVP
(Marketing),EVP (HR Central), EVP (Accounts), EVP (Operation), EVP (Information
Technology, Training & Research), and EVP (Revenue). All these are appointed at
Pakistan Telecommunication Company, Headquarters at G-8/4, Islamabad. Apart from
these EVP, there are also EVP (Operation), EVP (HR) etc who are heading the other
regions of PTCL in major cities country wide. Then there are Chief Engineers and
General Managers at H/Qs who report to their relevant EVP. Then there are Senior
Managers, Deputy Directors, Assistant Directors, Account Officers, Assistant Account
Officers, Financial Analysts, Marketing Managers, Computer Programmers, and IT
Specialists etc. There are also Regional Heads (General Managers) to head PTCL
Regions then come the Senior Managers (Operations), Senior Engineers (Operations),
Engineers to look after the telecom system of Regions. There are also Senior
Managers Finance, Account Officers and Accountants to Handle Regional account
and billing matters. Manager HR & his staff are responsible to take care of Personnel
affairs at Regional Level. In non-gazetted staff there are Engineering Supervisors
Operations /Switching /Power plant /Optical Fiber system/M.W Media, Account
Assistants, Stenographers, Assistants, Key Punch Operators, Telecom Technicians,
Upper Division Clerks, Lower Division Clerks, Line Men, Wire Men, Drivers,
Exchange Cleaners, Naib Qasids and Peons etc. All the staff is recruited by the HR
Department headed by SEVP HR. The HR experts are responsible for hiring & to
further streamline its recruitment process.
PTCL subsidiaries:
Ufone:

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


commenced its operations on 29th January 2001 as a GSM 900 service provider.
Since the outset, it has expanded its coverage and customer base at a rapid pace and
established itself as one of the leading cellular service providers in Pakistan. Ufone is
now considered to be one of the most active, aggressive and innovative players in the
mobile sector of Pakistan.
The growth of the cellular industry is a direct result of the successful implementation
of the telecom deregulation and cellular mobile policy by the Ministry of IT and
Telecommunications (MOIT&T) and the support, guidance and timely enforcement of
regulatory process by the Pakistan Telecommunication Authority (PTA).
Maskatiya Communications:
PTCL acquired Maskatiya Communications (Pvt) Limited
(MAXCOM). MAXCOM is an internet service provider operating in Karachi and
some parts of Hyderabad. Its customer base is around 6,000 subscribers. The 100%
shareholding of MAXCOM has been transferred in PTCLs name. MAXCOM
customers are now eligible to enjoy superior PTCL broadband and other products and
services.
2.2 Nature of Organization:
PTCL offers both products and services. PTCL is the largest
telecommunication provider in Pakistan. PTCL also continues to be the largest
CDMA operator in the country with 0.8 million V-phone customers. The company
maintains a leading position in Pakistan as an infrastructure provider to other telecom
operators and corporate customers of the country. It has the potential to be an
instrumental agent in Pakistans economic growth. PTCL has laid an Optical Fiber
Access Network in the major metropolitan centers of Pakistan and local loop services
have started to be modernized and upgraded from copper to an optical network. On
the long distance and international infrastructure side, the capacity of two SEA_MEWE submarine cable is being expanded to meet the increasing demand of
international traffic.
PTCL is the largest telecommunication provider in Pakistan. PTCL also continues to
be the largest CDMA operator in the country with 0.8 million V-phone customers. The
company maintains a leading position in Pakistan as an infrastructure provider to

other telecom operators and corporate customers of the country. It has the potential to
be an instrumental agent in Pakistans economic growth. PTCL has laid an Optical
Fiber Access Network in the major metropolitan centers of Pakistan and local loop
services have started to be modernized and upgraded from copper to an optical
network. On the long distance and international infrastructure side, the capacity of
two SEA_ME-WE submarine cable is being expanded to meet the increasing demand
of international traffic.
PTCL is currently operating in two basic services

Fixed local loop services

Wireless local loop services

PTCL the incumbent operator still retains virtual monopoly in both fixed and wireless
local loop services. The company has maximum presence across the country for both
wireless and fixed local loop network. PTCL has market of only 3-4 million
subscribers while no major bundle package for the cellular mobile segment was
announced that has market of more than 100 million subscribers. PTCL is offering
array of value added services to the subscribers with connections of both fixed and
wireless including high speed broadband, IPTV, free voice mail service, free email
account, Personal Global Number, WiFi services and many more.
Long Distance International services are an integral part of Pakistans telecom
industry which is responsible for carrying international traffic from Pakistan to abroad
and terminating international traffic in Pakistan. PTCL is also in that business as
well.PTCL has also maximum market share in the broadband market. Today
incumbent is offering broadband services in more than 100 cities of Pakistan. And is
aspiring 3 million subscribers in the next 5 years.
Recently PTCL has also entered into the smart TV market and offering wide coverage
in big cities of Pakistan.
With the emerging technology of 3G and other wireless services PTCL has now set up
strong businesses and offer variety of products.
There is centralized structure in PTCL and most of the decision making authority is
given to the top level of management.

VISION

To be the leading Information and


Communication Technology Service Provider in the region by achieving customer
satisfaction and maximizing shareholders' value. The future is unfolding around us. In
times to come, we will be the link that allows global communication. We are striving
towards mobilizing the world for the future. By becoming partners in innovation, we
are ready to shape a future that offers telecom services that bring us closer.

MISSION:
To achieve our vision by having

An organizational environment that fosters professionalism, motivation and


quality

An environment that is cost effective and quality conscious services that are based
on the most optimum technology

"Quality" and "Time" conscious customer service

Sustained growth in earnings and profitability

Core Values

Professional Integrity

Customer Satisfaction

Teamwork

Company Loyalty

PTCLS CORE OBJECTIVES:


The primary objective of Pakistan Telecommunication
Company Limited is to provide telecommunication services to the people in the
country or in short to satisfy the telecommunication needs of its customers.
Responding to the rapid economic and technological growth, the company is
determined to meet the challenge of expanding needs of telephone and data
communication such as public data network, integrated services digital network and
Internet services.
The major focus of attention is to improve and expand the services, minimize the
faults and provide communication facilities to rural areas. It is also one of the major
objectives of management that the company should not improve its performance but
also encourage the private sector to enter the Tele business. The company has entered
the domain of free market economy, which necessitates the liberal management
policies and private sector.
The following basic policy steps have been taken to meet the objectives laid in PTCL
Act to expand and operate telecommunication services in the country. The main
objective of any company is to earn the profit and minimize expenses by winning
goodwill in the market.
The following are the long-term objectives of the organization.

Provision of Telecom services all over the country.

Plan, establish and maintain telecommunication

Acquire, promote and manage research and development, transfer of


technology and software development including manufacturing of
telecommunication equipment and plant

Enhance efficiency, improve quality and expand the system to meet


customer satisfaction and provide service on demand.

Create congenial climate for binding of human skill and horizon of


employees through training and education.

Convert its cash basis single entry accounting system to accrual basis double
entry system meeting the commercial international accounting standards.

To introduce computerized directory assistance and complaint services


reform billing and a revenue collection system..

Expand customer awareness of all value-added services of PTCL.

To improve the efficiency of Customer Service Centers by deputing


qualified persons who are well aware of public relation techniques

2.3 BUSINESS VOLUME:


Fixed line connections in the country are more than 5.4
million and the cellular connections are 12.7 millions currently there are 315
Payphone and over 51,000 Wireless Payphones There are over 140 Data and Internet
service providers (ISPs) to whom PTCL has provided network infrastructure.PTCL
generated annual Revenue of over Rs. 11 billion from its private sector operating
partners
2.4 Number of Employees:
Currently there are more than 30000 employees in PTCL who
are working in all over in the Pakistan they are the assets of the company and they are
the responsible for the good will of the company company also focuses on the status
of there employees and give them performance appraisal program and give them
incentives and also give them medical treatment.
2.5 Consumer Services:

DON'T DISTURB

CALL WAITING

INTERNET AND E-MAIL SERVICE

DIGITAL LEASED LINES/CROSS CONNECT

CALL FORWARDING ON NO REPLY.

CALL FORWARDING UNCONDITIONAL (IMMEDIATE).

DOMESTIC CALL CENTERS

CO-LOCATION CENTER

CONFERENCE CALL

2.6 Product Lines

Consumer Products:

PSTN (Public Switch Telephone Network)

V-phone

V phone postpaid

Broadband

PTCL Smart TV

VMS (Voice Main Service)

Free Inter Facility

Kendo SMS

PTCL Direct

EVO Wireless Broadband

PTCL Calling Cards

Corporate Products:

UAN (Universal Access Number-111)

UIN (Universal Internet Number-131)

Business DSL

DPLC (Domestic Private Leased Circuit)

IP Connect

ISDN BRI (Integrated Services Digital Network Basic Rate Interface)

ISDN PRI (Integrated Services Digital Network Primary Rate)

Co- locations

DXX Connectivity

Call Centers

Audio Conference

VPN (Virtual Private Network)

Premium Rate Service)

V-Connect

International IP Services

PTCL Webhosting

Payphones

1- PTCL landline
In this situation PTCLs counter strategy for landline services, during
the years 2007-08 was aimed to increase ARPU, acquire new subscriber and contain
churn.
To increase operations, PTCL shifted from its conventional duration based charging
system to value based options, like Pakistan Package that offered 5,000 minutes for
on net nationwide calls at RS. 199/month. PTCL also launched International Plus
package to facilitate cost effective International calls at unmatchable rates.

Local Call Charges :


PTCL Charges and timing for local call unit will be as under:
Local
Landline to Mobile

Rs. 2.50 per minute

Landline to Landline and Rs


Vfone
per minutes

1.00

2- PTCL V-phone:
PTCL also continues to be the largest CDMA operator in the country
with approximately 1.25 million V-phone customers.
It offers fixed wireless telephone for your homes & business. With CDMA2000 1X
technology, ours is the largest WLL network with a capacity of 2.6M, covering over
10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet
access (153.6kbps) and EVDO Broadband.
3- PTCL Broadband services
PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan.
Since its launch on 19 May 2007, PTCL has acquired 668,376 Broadband customers
in over 605 cities and towns across Pakistan, leading the proliferation and awareness
of Broadband services across Pakistan

Features

Cost effective always on internet access

High speed data download

Unlimited download

Free Modem

Convenient Ordering on phone and web


No upfront charges

PTCL will have the following data rates for all its broadband existing and new
customers with effect from July 15th 2010.

1Mbps at Rs 1199

2Mbps at Rs 1499

4Mbps at Rs 1999

6Mbps at Rs 4999
8Mbps at Rs 6999

3- Smart TV services
Using its state of the art Broadband network, PTCL entered the media sector on 14th
August 2008, by launching a digital interactive television service for the first time in
Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought
Pakistan in the list of a few countries across the globe that offers this state of the art
interactive TV service to its subscribers. Currently PTCL Smart TV offers its viewers
125 live channels and over 500 Movie titles through its Videoon Demand service.
The service is available in 15 cities including Karachi - Lahore - Islamabad Rawalpindi - Gujranwala - Faisalabad - Peshawar - Sialkot - Multan - Sargodha
- Jehlum - Wah Cantt - Taxila - Hyderabad &- Abbotaba however it is planned to
be expanded to all the major cities and towns across Pakistan during the year 2010.
4- Pak Internet Exchange:
It is the only IP enabled network with 40 (number increase) point-of-presences (POP)
in 26 cities.
5- EVO Wireless Broadband:
EVO wireless Broadband is the latest service from PTCL
that offers High speed wireless internet Access and is the lates evolution in internet.
PTCL EVO 3G WirelesBroadbands:

EVO offers its customers a superior 3G internet


experience, with flexibility to roam freely like never before, in more than 100 cities
Nationwide.

Packages
Package

Price

Volume

Evo Tab Unlimited

Rs.2000

Unlimited data volume

Evo Tab 5 GB

Rs.1500

5GB Data Volume

Evo Tab 2 GB

Rs.1000

2 GB Data Volume

3 Organizational structures
3.1 Main Offices
Registered office
Corporate Headquarters, Blocks-E, G-8/4,
Islamabad-44000, Pakistan
Corporate Customer Centers
Islamabad
PTCL F-8 Exchange
Nazim-Ud-Din Road
F-8/1, Islamabad
Ph: 051- 111 20 20 20
Fax: 051- 111 21 21 21
shahzad.khalil@ptcl.net.pk
Karachi
Ground Floor, EVP Office,
Hatim Alvi Road, Clifton, Karachi,
Ph: 021 111 20 20 20
Fax: 021 111 21 21 21
salman.khan@ptcl.net.pk
Lahore
26A Civic Centre

Barkat market, Garden Town, Lahore,


Ph: 042 111 20 20 20
Fax: 042 111 21 21 21
nadeem.ahmad@ptcl.net.pk

4. Critical Analysis of PTCL:


4.1 Financial Analysis
Horizontal Analysis of Balance sheet
Assets:

2009

2010

2011

2012

Account Receivables

109.182207

116.1297

104.0571 99.36392

Inventory

118.332837

156.3154 158.6836 124.3317

Total current assets

122.592219

98.98211

148.4296 117.2128

Cash

103.411165

56.91187

65.82281 31.29509

Total Assets

101.731006

92.43105 143.216

Trade Payable

105.882378

122.2154 185.2546 175.4723

Total current liabilities

119.579052

125.9194 307.1225 230.5151

Total long term liabilities

93.5741166

101.6002 252.4071 283.3354

Total Liabilities

107.170447

112.7808

91.9577721

78.05856 87.26481 89.60438

138.5099

Liabilities:

281.0143 255.719

Equity:
Total equity

Vertical Analysis of Balance sheet:


Assets:
Items/Years
Account Receivables
Inventory
Total current assets
Total fixed assets
Total Assets
Liabilities:
Trade Payable
Total current liabilities

2009
7.46718216
2.53840084
35.4682195
21.7795267
100

2010
8.741452
3.690558
31.51873
13.19226
100

2011
5.055199
2.417957
30.50413
9.847345
100

2012
4.991213
1.958887
24.90715
4.84094
100

12.602964 16.08019 15.66317 15.34017


15.9976465 18.62129 29.18598 22.65025

Total long term liabilities


11.4250469 13.71238 21.89099 25.4083
Total Liabilities
27.4226935 31.89968 51.07698 48.05854
Equity:
Total equity
72.5773065 68.10032 48.92302 51.94146
Horizontal Analysis of income statement:
Sales
115.92109
CGS
104.429894
Total operating cost
10.9771686
EBIT
109.804168
NPAT
107.815098
Vertical Analysis of income statement:
Income Statement:
Sales( Base)
CGS
Total operating cost
EBIT
NPAT
Current Ratio:

100
54.58692
866.0433
24.55854
12.23581

109.6724
111.0729
10.27889
99.95441
99.90021

100
49.1757442
82.010123
23.2626389
11.3802009

112.0889
122.146
10.69794
104.8718
107.9139

100
55.28399
81.16874
22.38244
11.14556

2010
2011
Current ratio
1.81
1.50
Current ratio is measure of the firm ability to pay off obligation.

119.5664
137.7776
11.48177
107.9404
116.058

100
59.48466
82.65649
22.97728
11.78006

100
62.90106
83.16479
22.17061
11.87678

2012
1.51

PTCL Current Ratio in 2010 was 1.81 and it decreased in 2011 and after that slight
increase in 2012. Although current assets increases in 2011, but increase in current
liability results in decrease in current ratio in 2011. PTCL current assets in 2011 was
54 Million to that of 45 Million in 2012; but current liability also decreases and hence
that this ratio has an increasing trend.
Decrease in current ratio in 2011 mean that Company has less ability to pay off
obligation. In 2011, PTCL had to pay for Voluntary separation scheme where as in
2012 onwards PTCL will not have to pay for this liability.
Overall Companys liquidity position is relatively good (1.51) as compared to 2011
since its liabilities are reduced as compared to last year (1.50).
Quick Ratio
Quick Ratio

2010
1.58

2011
1.36

2012
1.37

It is measure of firms ability to pay off short term obligation without relying on the
sale of inventories.

Quick ratio in 2010 was 1.58 and that it decrease in 2011 and then slight increase in
2012.
Current assets increases in 2011, but increase in current liability results in decrease in
quick ratio in 2011. PTCL current assets in 2011 was 54 Million to that of 45 Million
in 2012; but current liability also decreases and hence that this ratio has an increasing
trend. Decrease in quick ratio in 2011 mean that Company has less ability to pay off
obligation. In 2011, PTCL had to pay for Voluntary separation scheme where as in
2012 onwards PTCL will not have to pay for this liability.
Overall current Companys liquidity position is relatively good as compared to 2011
since its liabilities are reduced as compared to last year
Debt Ratio:
Debt ratio

2012
33.87

2011
35.66

2010
27.48

The ratio of total debt to total assets, generally called the debt ratio, measures the
percentage of funds provided by creditors: Debt Ratio of PTCL is increase in 2011
and then reduced from 35.4 to 33.8 in 2012 which indicates that financial position of
the company is good and they have paid off some portion of debt which they were
having in 2011. This is because they had to pay for voluntary separation scheme in
2011.
At the same time the analysis also shows that probably PTCL has used its total assets
to pay off some of its debt.In case PTCL needs some loan in the near future ten
Creditors may be reluctant to lend the firm more money. It also means PTCL is
financed by debt by 33% in 2012 and 35% in 2011.
Creditors prefer low debt ratios because the lower the ratio, the greater the cushion
against creditors losses in the event of liquidation. Stockholders, on the other hand,
may want more leverage because it magnifies expected earnings.
Total Asset Turnover Ratio:
2012
2011
2010
Total Asset Turn Over 0.38
0.384
0.48
Total assets turnover ratio, measures the turnover of the entire firms assets; it is
calculated by dividing sales by total assets. In year 2012 PTCL paid PTA for WLL
license fee. Furthermore PTCL paid Loan to the wholly owned subsidiary PTML

(UFONE) as well. These two entities together was a big expense for PTCL because of
which the cash in 2012 is reduced, which eventually resulted decrease in total assets.
In 2012, PTCL also took more Long term loans and did less short term investments in
comparison to year 2011 because of which total assets in year 2012 are less in from
year 2011
Profit margin on sales:
2012
2011
2010
Profit margin on sales 16.26
15.45
(4.26)
The profit margin on sales, calculated by dividing net income by sales, gives the
profit per dollar of sales. In 2010 net profit margin on sale is negative. But it increase
in 2011 to 15.45 and further increase to 16.26 although its revenue decrease in 2012
from 2011 but that in increase in profit is because in 2011 there was voluntary
separation scheme payable. So net profit increases in 2012 and hence profit margin on
sales increases.
Financial Ratios overview
Ratios

Formulas

2012

2011

1 Current Ratio

Current Asset/Current Liability

1.51

1.50

2 Quick Ratio

1.58

1.37

3 Debt Ratio

(Current
AssetInventory)/Current Liability
Total Liability/Total Asset

33.87

35.66

4 Total Asset Turn Over

Sale/Total Asset

5 Profit margin on sales

Net Income /Sale

0.38
16.26

0.384
15.45

SWOT Analysis
Strengths
One of Pakistans Consistently Profitable Corporations

Experienced Telecom Resources

Most innovative services

Large earnings

Good quality international connectivity

Modern technology and flexibility in operations.

Market leadership in Local loop, Wireless local loop (WLL) and fixed
telephony.

PTCL (Ufone) is market challenger in GSM segment.

Competitors still depend on PTCL network either directly or indirectly.


Weaknesses
Customer Dissatisfaction and Delayed Responses.

Lack of Human Resources Management:

Lack of Training Program.

Absence of Company Culture.

Labor Unions.

Influence of Government.

Image Government organization

Image Lack of customer focus

Image Outdated people and technology (perception)

Lack of aggressive marketing

Lack of customer services

Ambiguous management style

Lack of corporate culture

Social responsibility

Over employment & low productivity.

Opportunities

Entering the New Market.

Telecom Facilities In Rural Areas,

Addition to the Product Line,

Increasing Awareness Rate,

Faster Market Growth, Partnership with new entrants in a deregulated


environment.

Scope for efficient/cost effective operations.

Threats

Capture broad band internet service market.

Maintain consistency with the Pakistan IT and internet promotion policy of


low prices for Bandwidth and Internet access.

Government Legislation,
Exchange Rate Risk,

VOIP use is increasing despite ambiguous and discriminatory policies

Exposure to market competition

Migration to Cellular Networks


Ability to Attract & Retain Quality Professionals

4.2 Marketing Strategy:


Segmentation
PTCL has made segments on the basis of customers they are serving

Residential

Corporate

It has also made segments on the basis of service it is providing

Telephone

Internet

TV

Target market:
PTCL is currently targeting only developed markets where there is large number of
customers. PTCL has launched its outlets in Islamabad, Karachi, Lahore and
Rawalpindi and planning to target customers in small cities and towns in near future.
Positioning:
Because PTCL is only provider of landline and covers almost all cities of Pakistan so
it is market leader in this segment.
It is position itself on the basis of

Innovative

Evolving

Trustworthy

Human Quality Conscious

Positioning Statement:
Hello to the Future
The first key word Hello captures the essence of the whole telephony network that
is the backbone of PTCL. Hello is a word which is related to the telecommunication
history and has been used ever since and will be used in future. This word expresses
the welcoming nature of the PTCL brand, its customer oriented approach
and warm environment. Everyday most conversations and relationships start with the
word Hello, hence it portrays the relationship building of PTCL with its
customers.
The second key word Future translates PTCL philosophy in a nutshell to
provide planned and proactive solutions and products to its customers. PTCL is
constantly evolving and taking its customers into the future. The word Future holds
the promise that PTCL is committed to, by providing complete customer
satisfaction through innovative and futuristic services and products.
Promotional Activities:
PTCL is using following components of promotional mix for the
promotion and Publicity of its product/services.
Advertising:
In promotional mix, PTCLs main stress is on advertising in print and
electronic media. PTCL periodically places its advertisements in print media on
services like H/Qs hotline 0800-44544, Caller line identification (CLI), Voice
Messaging Service, Digital Facilities, PTCL Prepaid Calling Cards, Inquiry
17, Complaint 18, phone bill cards prepaid telephone etc. to remind the customers
of these services. Sometimes, corporate ads are also released to print media to mark
special occasions.

Sales Promotion:
PTCL charges 1/3rd rates on national calls from 06:00 pm 07:00 am and
local calls are free from 11:00 pm to 06:00 am to promote the usage of its telecom
network. Moreover, PTCL offers special rate packages on special occasions like
Ramadan Package and EID package, which offer customer reduced rates for specific
timings.

Pricing:
Being a government organization, PTCL is not authorized to determine the
prices of its products itself; the Telecom Regulator Authority viz. Pakistan
Telecommunication Authority (PTA) fixes the prices of telecom services. The process
is such that whenever PTCL intends to increase or reduce the rates of its services, it
submits its Proposal to PTA for approval.
Competitors of PTCL:
Although tremendous growth has taken place in the Pakistan
telecom sector but most of it can be attributed to the cellular growth. Fixed line is still
awaiting a takeoff.
There is no meager competitor of PTCL in landline but with the growth of
telecommunication industry of Pakistan competitions increasing specially in mobile
phone sector, PTCL have to face competition as mobile phone sectors is alternative of
landline. In total there are more than 100 million subscribers of mobile phone. There
are 5 big players in mobile phone industry.

Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned


subsidiary of PTCL faces a tough competition with other big 4 operators of mobile
phone in Pakistan. Ufone is now considered to be one of the most active, aggressive
and innovative players in the mobile sector of Pakistan. It has 20,533,787 subscribers
in Pakistan. It has market share of 19.7% in cellular market.

With the splendid growth and numbers growing to


26,667,079.Telenor is amazingly grabbing the market slowly. Right now they art
number 2 position as compare to warid (number 4), though they both started their
operation in Pakistan almost together. It has been also said that Telenor has the best
HR among all the telecom companies. Telenor Pakistan has recorded impressive
results increasing the revenue by 80% compared to the same period in 2007. In 2011
telenor has market share of 23e .9%

It has added over 2000 sites since its launch and the
network cell sites have grown from about 900 to over 3000 today. By the end of 2009,
the cell sites are targeted to grow to over 10,000. Currently it has 6.8% market share
in Pakistan cellular market. It has total 7,453,034 subscribers by the end of 2011 year

Mobilink is a largest mobile phone company of


Mobilink is currently having more than 33,378,161 users base which is the 32.5% of
total cellular industry of Pakistan. Mobilink is basically competing Ufone which is
subsidiaries of PTCL. Mobilink is offering very competitive monthly tariffs when
considering that PTCL is offering 1 Mbps at 2000. Mobilink is offering 1 Mbps at
PTCLs tariff for 512 kbps at 1200, but CPE cost is still very high for common
people, reasoning slow penetration.

Other competitors are:

World call

Link dot net

Broadband Services Competitors

Wateen

World Call

Wi-Tribe
Link Dot Net

4.5 Success and failure of different products:


PTCL Broadband:
Since its launch on 19 th May 2007, PTCL has acquired 500,000
Broadband customers in over 605 cities and towns across Pakistan, leading the
proliferation and awareness of Broadband services across Pakistan, hence the PTCL
not only bringing the benefit of high speed internet access to subscribers in major
cities but will also generate new revenue streams for future growth.

PTCL achieved unprecedented success as it added over 10,000 customers within the
first 120 days of its launch while historically it had taken four years collectively for
all the other operators to achieve 30,000 customers.
Its success is due to PTCL wide coverage in Pakistan. It is available in almost every
city of Pakistan now at reasonable Price.
PTCL EVO:
Made great impression on their arrival and desperate bandwidth hungry
user gave hem overwhelming response, In no time there thousands of customers under
PTCL evo: service. In very start speed was 2mb+ even in that many of customers
were facing signal issues but after some time coverage got better signal issue resolved
in major cities. The happiness of stable connectivity was not long lasting, with the
issue of Evo Nitro the major difference in speed for normal evo customers happened
and customers in small cities not having nitro version suffered most and thousands
complaints registered and whole internet is flooded with shouting angry ptcl evo
users.
PTCL V Phone:
PTCL also continues to be the largest CDMA operator in the country with
approximately 1.25 million V-phone customers. It is successful due to its
differentiation and low price.
PTCL Land Line:
Since the deregulation of the telecom sector, A large number of
foreign investors opted for licenses in LL. LDI and cellular operations, identifying
Pakistan as an emerging market. Investors entered the market forcefully in the cellular
segment, including heating competition for PTCL. In this situation PTCLs counter
strategy for landline services, during the years 2007-08 was aimed to increase ARPU,
acquire new subscriber and contain churn.
Landline success is mainly due to Broadband success.
PTCL Smart TV:
Using its state of the art Broadband network, PTCL entered the media
sector on 14th August 2008, by launching a digital interactive television service for
the first time in Pakistan. Employing the IPTV (Internet Protocol TV) technology,
PTCL brought Pakistan in the list of a few countries across the globe that offers this
state of the art interactive TV service to its subscribers.

Because it is first time this service is launched in Pakistan. So it is success for PTCL.
Dial Up Internet:
Because of high speed internet available so this product is now becoming less popular.
4.6 Major HR Policies and Practices:
Human resource in PTCL has following functions

Organizational design and development

Business transformation and change management

Performance, conduct and behavior management

Industrial and employee relations

Human resources (workforce) analysis and workforce personnel data


management

Compensation, rewards, and benefits management

Training and development (learning management)

Recruitment:
The department first determines the need of employees to be hired
.The post against each vacancy is advertised and then the applications are invited
from the applicants .If there is a post of manager cadre; the SEVP personally is
the interviewer of the interviewees along with his team.
Sources of candidates:
There are internal as well as external sources of candidates for certain jobs in PTCL.
Internal sources of Recruitment:
Internal sources of job applicants involve sons/daughters of the
employees working in PTCL, reference of relatives of employees, etc.
External source of Recruitment:
External sources involve several means which involve newsletters,
questionnaires, interviewing, newspapers, etc

Medical Facilities:
HR in PTCL has also function of giving medical facilities to PTCL
employees. There is specific budget available for that and medicines are available at
no cost
The main elements are engineering, education and enforcement. PTCL is offering
both its own medical facility setup & the private hospitals on its panel. The miner
health problems are dealt by PTCL own medical facility/staff & other in which
patient is to be admitted or operated are forwarded to the panel hospitals.
Benefits to Employees:

Life insurance

Hospital and medical insurance

Sickness leave pay plans

Supplemental unemployment compensation

Loan funds

Credit unions

Social programs

Recreational programs and college tuition refunds plans.

Traveling allowance

5. Overview of Finance department


Hierarchy of Finance Department
5.1 Employees in finance department
Employee
Number

Name

Designation

10053766

M. Saleem

Senior Manager

ACMA

Benefits
(Salary)
RS.
127,000

10065249

Irshad
Hussain
Umer
Hayyat
M. Tariq

Manager
Finance
Assistant
Manager
Data Entry

FCMA

58,000

MBA
(Finance)
Graduation

46,000

Nafees
ahmad

Computer
operator &
Record keeper

Graduation

36000

10076578
10086789
10053690

Qualification

34,000

10075540

Adnal Ali

Cashier

Graduation

37000

10098431

Arshad
Majeed

Assistant

Metric

31,000

Brief Overview of Finance Department Members:


Mr Saleem: (Senior

Manager Finance):

He is the head of finance department. His grade is 19 and he is employed


in PTCL in contractual basis.

He overall controls all the activity in finance

department.
Mr. Irshad Hussain: (Finance

Manager)

He is grade 18 officers and employed on contractual basis. He is


responsible for different phases of financial activities including operational cash
handling, bank dealings, sage keeping of financial records and check books and
recording of all transactions on a daily basis. Most of his working is in SAP. Currently
he is also acting as accounts manager.
Some of its primary responsibilities are.

Oversee and coordinate financial activities for all Gujranwala division.

Ensure preparation and maintenance of financial reports.

Maintenance of financial records.

Prepare monthly bank reconciliation certificate.

Posting of bills in SAP.

Responsibilities to check all the bills amount and rates and also report to the
SM finance and also to the manger with concerned bills.

Ensure timely disbursement of staff payroll, pay slips and updating of relevant
salary sheet.

Preparation of operational, budgets and annual development program.

Disbursement of funds against budget for revenue expenses.

Monthly analysis of variances with budgets.

Control of financial transitions in billing.

Computerization of billing for all services using SAP.

Maintenance and operation of bank accounts.

Funds based management.

Settlement of total accounting rates.

Complains with indirect taxes.

Preparation of management of accounts.

Co-ordination with Government Authorities on financial matters and related


issues

All the bills which are initially checked by concerned person in finance are
then checked by him. He then signed those bills after then it is approved by
Senior Manager Finance.

Help other employees of the finance department in their problems.

Also responsible for adjustment in the accounting entry.

Overall all the main activity in finance department is controlled by Mr. Irshad.
Mr. Umar Hayat: (Assistant Manager Finance):

He is assistant manager of finance department.

He is currently working as to check all the email forward to the finance


department.

When the bills received in finance department he mails to the concerned


manager to check whether that bills is of his cost centre.

He also emails to cost centre when there is error in some bills.

Mr. Adnan Raza:

(Cashier)

He worked in PTCL finance department as a cashier.

He has record of ceiling and non ceiling of budget allotted in the finance
department.

When a cheque is made then he mails to the defined person to collect the
cheques, which is then given to the person after verification. He maintains
monthly record of all the cheques issued.

He is also responsible for tax collection and then submits it to the FBR.

Mr. Tariq:

(Computer operator)

He is currently working on SAP and is responsible of parking and posting of


the bills and also for the transfer of the funds to related bills.

The bills which are approved by the SM and finance manager are proceeded
towards to him. He parks it into the SAP. It generates a unique code after
entering into the SAP.

He then posts the bills and transfers the funds.

He also makes the cheques against bills.

After entering code of each bill he recorded entry and at the end attach cheque
with the application.

All of his working is in SAP.

Currently he has responsibilities of parking, transferring funds and posting.

Mr. Nafees:

(Record Keeper)

His job is to keep to record of all the bills.

Mr. Nafees is one of the most experienced people in finance department.

The bills which are processed are given a specific code which gives a unique
idea to him to keep record and also the amount issued against those bills.

He also has an additional task of travel management. All the bills related to
traveling are checked by him.

Mr. Arshad:

He checks the bills at initial stage. He checks whether rates and amount in bills is
accurate and also it approved by concerned person. He also has record of those bills.
He is currently working on following types of bills and vouchers.

The bills related to employees

Travelling allowance

Employee training

Stationery expenses

Entertainment

Uniforms

Merit scholarship

Local training

Overtime allowance

Postage and courier services

Advance salary

5.2 Functions and Operations in Finance Department:


Finance Department is responsible for the budgeting,
planning and transaction relating expenses, pricing control funds and treasury
measure and direct taxation.
PTCL recently introduced SAP in its functions to ensure better management. In
finance department SAP is also used which is directly connected to headquarter
office. It is very expensive software and its training is also expensive.
Functions of finance department is as under

PTCL head office Islamabad approves budget for certain region and then
handover it to the RGM for further distribution.

Then budget is transferred to the concerned cost centre by finance department


at the time of payment on case to case to basis.

Vouchers are directly received by SM finance and then forward to the


concerned person depending on the type and nature of vouchers and bills.

Initially bills, their rates, amounts and signature of the concerned manager of
the cost center are checked by employees in the finance department

Then at the end Finance manager checked those bills and vouchers and then
signed those bills which later on approved by the Senior manager

Then those bills or vouchers are forward to the computer operator who then
parked those bills, transfer funds for those bills and then posted those bills in
SAP.

Finance manager also posted some bills. But because currently he is


responsible for other accounts activity as well so most of the posting is done
by computer operator.

Computer operator then also prepares cheques for those bills.

Then cheque along with bills is forward to the cashier.

Cashier first checked those cheques and then signed them from finance
manager and senior manager. He then mails to the concerned person about
those cheques.

Every effort is being made to release the payment at earliest

Allotment and SAP work is being looked after by finance manager and
assistant manager finance

Assistant manager also mail to concerned cost centre and confirm the receipt
of bills or vouchers

Record keeping is an important part in finance department. He uses excel


sheet and SAP to keep record of all the bills and vouchers.

Every bill that is posted has a unique code which is helpful in keeping record
of the data.

Record keeping is also important for auditing purpose.

Auditor come at the end of fiscal year and checked all the record and bills.

Accounting system is currently maintained finance manager.

Revenue and Collection Department:


Following are some of the function of Revenue and Collection department.

Responsible for delivery of bills, income collection, and debt recovery


administration to customer and clients

To check the bills registered i.e. record keeping

Analyze arrears accumulation and Billing vs Realization

Check caller reports on daily basis

Make correction in bills on the request of the customers

To check negative arrears

To make online adjustment

To monitor delivery of telephone bills

Liaison with banks

Bring improvement in the process of delivery of bills to the customer.

6. Responsibilities as a student
6.1 Duties and Accomplishment

I was not given any specific duty in PTCL. My supervisor gives me different tasks on
daily basis depending on the work available for them.
In PTCL finance department I performed following duties
As assistant of finance manager:
I worked as assistant of finance manager. I helped him in checking bills, vouchers
and other information. There is certain guideline available in finance department. First
I got overview from that guideline and then also from finance manager. Then under
the assistance of finance manager I performed following duties

Checked travelling allowance bills and their rates and ensured that their
rates are in accordance to the standard set by PTCL headquarter.

Arranged all the fuel bills in sequence and checked their amounts and
match them with amounts in the excel sheet before audit.

As assistant manager check the pre audit bill

And check the criteria set by ptcl fuel of motor Bick for 1 month.

I check the medical bills of different employee ptcl set by special polices

Checked maintenance and different project bills.

I study the ptcl tender policies

I also worked with other employees of the finance department


With computer operator:
His task is posting of all the bills. Along with him I performed following tasks.

Checked all the cheques and arranged them in sequence in accordance with
their unique code number

Parked and posted some bills in the excel sheet

With record keeper:


Along with him I performed following duties.

Put record on maintenance bills on excel sheet

Store all the vouchers and bills in store room.

With others:

I also worked with assistant manager, clerks and other members in the finance
department. Checked bills of Power (electricity, gas), vehicles and employees related
and also checked the approved signature of respective manager

I study the welfare policy for employee like (cycle, motor cycle and car) ect.

I studied the policy of Retirement of PTCL employees

The procedures of house building advance for PTCL employee

I learned two Bills and Purchase Requisition form

I learned RPC form. It is Regional Procurement Committee.

Welfare policy of employees child for studying 1 to master degree.

I studied another policy of ptcl employees of Q loan.

6.3 New Knowledge Acquired:


It is great experience working in organization like PTCL. It is great for me to have a
look at professionals. I also realized that things which I have learnt in my study are
somewhat different in actual practical life
During my internship I have learnt lots of new things in PTCL. This was my first
experience in any organization. I learnt how professional life is different from student
life.
Finance system of PTCL is new things to me. Application of finance in PTCL is
different from that in books.
Because my supervisor Mr. Irshad is very supportive, I was able to learnt lots of
things from him. He always encouraged me to ask question from him. He encouraged
me to even ask questions about anything related to finance and from books. There are
certain things which are different in practical life from which we have learnt in
student life. I have got overview of accounting entry in practical life.
I also leant some practical experience of my supervisor. He also told me how to deal
with stress.
I learned the time management, rules and regulation which can be main part of any
organization.
6.4 Problems Encountered:
PTCL is great place to work. As such I do not face any major problems during my
internship. Because Mr. Irshad helped me in every issue I am facing in my internship.

However I was nervous at the time of auditing when I have to enter all the bills in
excel sheet. I worked whole day on that but still could not complete that task. But Mr.
Irshad still encouraged me and because of shortage of time he asked others to
complete the tasks.
The other problem is that I could not get overview of all departments in PTCL. Most
of the time I was working on finance department.
I have learnt majority of things in finance department but I was not able to learn
things by doing myself. Because in finance things are critical and minor mistakes can
lead to loss of lots of money. So I was not given specific duty to perform myself with
complete control. I could not get any access to any of the systems in PTCL. I want to
do more things in SAP but as internee I could not able to work on it.
6.5 How internship experience impacts you career
Internship is an integral part of MBA program. It provided me the opportunity to
develop practical knowledge and also develop my concepts which before that were
only in theoretical form.
My internship at PTCL has widened my knowledge about the finance and accounts
operations. I learned the time management, rules and regulation which can be main
part of any organization. This organization is my 1 st practical learning experience and
it will play a role of guide line when I will enter in my professional career.

7. Conclusion
We have completed our internship report for about six weeks. During this period we
have gained a lot of knowledge and practical experience. After a complete research
work we will conclude that decision making power in PTCL is fully centralized. All
the powers lie in the hands of CEO of the company. Main decisions are made by
board of directors. And confirmation of their decision is given by president of the
company. We analyze the organizational structure of PTCL. Organizational structure
of PTCL is fully straight forward. We can conclude that since the HR department of
PTCL has been re-organized in 2005, there is still a long way to go for achieving the
competitive advantage. Although strategies they are adopting are good but they still
need further improvement for the satisfaction of their employees and best utilization
of human resources so in return they would be able to increase their market share.
Because no doubt PTCL is enjoying monopoly but the time is came when competition

will force company to change its policies to become favorite telecom service provider
in the market & keep its current place & customer base.
PTCL offers many innovative products now. Overall PTCL still behaves as a
monopoly. It has to change its attitude. At a minimum, avoiding billing errors and
providing competent and courteous service to its customers is essential if PTCL wants
to show that it is transforming itself to a competitive company which cares for its
customers. It is said that the best assets of a company go home to their family in the?

8. Recommendations

HR should hire employee that is related to specific job (job fit). Because in finance department
some persons are not related to finance.

One department that seriously needs attention is PTCL's customer care. There have been
numerous occasions and news regarding the poor performance and troubleshooting when an
instance arises.

There should be a proper flow of communication between top and low level
mangers.

The employees should be sent for the national level training camps so that
they can serve the customers in a better way.

There should be appointed a well educated staff for the better growth of the
organization.

Some techniques should be developed by the top level managers to start


proper co-ordination among the different departments.

There should be a proper procedure of installing new connections to the new


customers of Broadband. Like Line testing, etc.

Build an environment of trust with the employees in order to create an


environment where employees are more open to ideas and more willing to
discuss possibilities and problems associated with change.

Link the change effort to a common team value in order to help employees
feel they can relate to the change effort at a personal level. This increases the
desire and motivation to change.

Establish a vision with the employees regarding the possible advantages of


making the change in order to help the team define for themselves where the
change will take them.

Collaborate for solutions with team members so that employees have the
opportunity to identify the driving and restraining forces in the change effort
and identify action steps for implementing steps to implement the change and
overcome the restraining forces.

Constantly monitor the process and the results to ensure that the change effort
is on track.

Promotions in PTCL should be on the basis of achievements, skills,


performances, behavior, attributes, rather than on seniority.

After getting training the employees should be on the right place for which
they were trained

Staffing will have to be on Merit and Fair rather than on Personnel links and
unfair means.

The employees at PTCL have lankness in motivation so the organization has


to set challenging tasks and jobs for them to make them active and energetic.

The compensation system should be equivalent to the other multinational and


international organizations working in Pakistan in the same field and industry.

Before organizing and establishing a plan, the manager has to learn all there is
about employee motivation. Focus on processes that help to enhance the
involvement of employees at the company and inspire feelings of
responsibility for the company's overall success.

Managers should set up employee suggestion systems, focusing on the topic


"How to increase productivity to offset an economic slowdown." Employees
are the ones that conduct work tasks on a routine basis and therefore they are
the best to suggest improvements and help the company survive hard times.

The organization has to encourage managers to step to the front lines and
become as pragmatically involved in the day-to-day operations of the
business as possible. Many managers view themselves as being somewhat
better than other employees and this viewpoint can be disastrous during
difficult financial periods.

Managers should be creative and encourage creativity among employees in


the organization. Search for ways to improve processes and performance so it
might become cheaper, faster and more efficiently

Managers should use both internal and external motivational factors as it is better to
focus on both rather than assuming that one is dominating.
9. References
Manuals PTCL GTR, 2012

Mr. Irshad Hussain, Manager Finance PTCL Gujranwala

Mr. Tariq, Computer Operator PTCL GTR

Mr. Nafees, Computer Operator PTCL GTR

Google Search Engine

PTA annual report

http://www.ptcl.com.pk