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GEPCO:

Introduction:
GEPCO establish in 1998 under company's ordinance 1984. There
are 60 units of GEPCO. It is a power supply company. It
encompassed the areas of existing Districts of

Gujranwala
Hafizabad
Sialkot
Narowal
Gujarat
Mandi Bahauddin.

It is the part of distribution network of NTDC (National


Transmission & Dispatch Company (NTDC) Limited).

NTDC distribution network:


National Transmission & Dispatch Company (NTDC)
Limited has distribution network which includes 11 companies.
Companies
LESCO
GEPCO
IESCO
FESCO
MEPCO
KESCO
HESCO
SEPCO
QESCO
TESCO
PESCO

City name
Lahore
Gujranwala
Islamabad
Faisalabad
Multan
Karachi
Hyderabad
Sakkhar
Quetta
Tribal Area
Peshawar

Departments of GEPCO:

Province
Punjab
.
.
.
.
Sind
.
.
Baluchistan
KPK
.

The main departments of GEPCO are as follows,


1.
2.
3.
4.
5.
6.
7.

Finance department
Customer Support Department
Purchase Department
Internal Audit Department
Operation Department
Human Resources Department
Legal Department

Main functions of departments:


Finance department:
Control all functions related the finance

Customer support department:


It is the debtor /account receivable section. It controls over billing

Purchase department:
It includes all functions related the purchases such as meter and
transformer.

Internal audit department:


It includes audit functions.

Operation department:
It includes the functions of supply of electricity.

Human resources department:


There is no basic HR department but it performs the functions of
hiring the new employees.

Legal department:
It performs the activity related the legal cases.

Board of directors:
There are 11 members of board of directors in GEPCO which are
appointed by the Government.
All departments complaints are reported to CEO.

Hierarchy of finance department:


Finance
Director

19
Grade

18
Grade

Manager
(Corporate
Account)

Deputy
Manager
(General
Account And
Financial
reporting)

Deputy
Manager
(Payment /
Admin)

Functions of grade 18:

Manager
(Corporate
Planning And
Control

Deputy
Manager
(CPC)

Deputy
Manager
(Budgeting
And
Texation)

1.Deputy Manager (General Account and


Financial Reporting):
Consolidation:
It includes all accounts/ trails/ sales of all 60 units of GEPCO.
Asset:
Fixed assets register /maintain
IOT (inter office transaction):
Handle the cases of transaction related the units/ branches of
GEPCO
Receivable and payable section:
Handle the cases of transaction related the units/ branches of
WAPDA with in Pakistan.

2.Deputy manager (Payment and Admin):


He performs functions related the pension, payment (periodically,
cashier, admin, salary).

3.Deputy manager (CPC):


He performs the functions related the costing, budgeting, capital
expenditure, operational expenditure, loan management (loan
calculation, markup of loan, repayment of loan), Tariff (related the
billing) and fund releasing.
In these Tariff is a important function.

4.Deputy manager (Banking and Taxation):


It performs two types of functions.

Taxation

Banking
receive payment

management of tax
payment of tax

CPC Section:
At the start of next financial year decisions relating to budgeting.
Operational and capital expenditure are made.

Budgeting:
Normally on the basis of previous 2 or 3 year expenses estimation
is made for current budget and then transferred to relate to
providences then finalize the tariff quotation. Budget is approved
by NEPRA (National Electrical Power Regulatory Authority).
Capital expenditure to update the system capital budgeting is
done every year with condition and planning of coordination
department.
It generally includes:

New electrical units


AMR meters
Upgrade lines and system
Mew transformer
Meter

Then it is passed on to the NEPRA


If the project is big than needs more funds and needs capital
budgeting.

Own Sourcing:

Own funds or have to take loan.

Loan Calculation:

Follow up of loan
Markup payment
Need of loan
Repayment of loan

All are covered under this head of loan calculations.

Reporting:
All the issues are reported to NEPRA by CPC sections.
These issues involves
Finance issues
Accounts issues

Relending:
Loan from Asian development Bank to Government and
Government to WAPDA at the high rate

Operational Expenditures:
These includes,
Salaries and wages
Repairing expenditures

Tariff petition:
It is a per unit rate of electricity
Frame work provided by NEPRA is followed fill the form of NEPRA
and follow the direction of NEPRA for tariff
WAPDA file the quotation of tariff on the basis of

Estimation of units
Cost of electricity
Subsidies:
The NEPRA finalize tariff and this is determined by considering by
subsidies by government.
Example:
Determined rate is 13 the government gives instruction that the
rate should be 11 per unit and the difference of 2 is subsidy by
government.

Per Unit
decided by
GEPCO

13

11
2 RS is
subsidy

Operational budget:
Cash budget
Sale budget
Electricity cost
Budgeting is transfer to all heads:
Salary
Travelling allowance

Per Unit
decided by
Govt

Rolling budget:
Update budget every month
Adjust budget with actual budget

Flexible budget:
Changeable budget
Can change expenses
Changeable budget according to decided standard
Flexible budget on excel model

Demand
And
Release
Function:

Demand and release function:


When any office demands funds for any expense from GEPCO and
GEPCO gives approval only after pre audit of activity.

The demand is match with the budget, if the amount of demand is


low than the budget then it is passed.

Pre Audit:
Audit before performing any activity is called as pre audit.

Post audit:
Audit after performing any activity is called as the post audit.

Steps of demand:

Deman
d and
its
records
are
made

Pre
audit
the
deman
d

clarify
from
budget

making
vouche
r /fill
the
deman
d form.

In this there is
written the demand
values.

SUBJECT: APPROVEL FOR RETENTION OF


FUNDS
WORTH RS.

FROM GEPCO

This office is in receipt of additional fund demands as per


detail given here under:
S.
NO.

DEMAN
D
NO.&D

Sr. No. Is
always 1

It is
mentioned in
demand
record.

NAME
OF
OFFICE

DETAIL OF
ADDITIONAL FUND
DEMAND

It is written in
demand
record with
stamp.

Nature of
demand

BAN
K

AMOUN
T

In this there is
written the
demand
values.
In this there is
written the
demand
values.

RS.
TOTAL:

The chief executive GEPCO may please be approach to accord


approval for retention of RS.
From GEPCO Revenue
collection main account to general account to meet with the
expenses against the above stated demands.
Approved from
him

ASSTT. MANSGER (CPC)


DY. MANAGER (CPC)
Approved from
him

Approved from
him

FINANCE DIRECTOR

CHIEF EXECUTIVE OFFICER (GEPCO


Approved from
him

IOT
(Inter office
transaction)

IOT (Inter Office Transaction):

There are 60 units of GEPCO.


R.O offices (Revenue) + XEN offices (material)
Total accounts 63 or 64 after including R.O & XEN.

Type of advices:

Debit
Advice
Types of
advice
Credit
advice

Issued
Receivea
ble
Issued
Receivea
ble

Steps of IOT:
First of all advices are made in this section. For this purpose
we enter the total amount of every unit in excel and enter
the registration number. After this advices are automatically
made. There are taken out prints and approve these advices.
The debit and credit account of every unit is clarified.
There are posting of ledger of all advices and accounts.

Receivable
And
Payable:

Receivable and payable:


In this section there is involved the transaction with other
distribution companies such as LEPCO or MEPCO.
The transaction is recording with the different types of companies
in this section such as
9 distribution companies

4 generation companies
1 NTDC (national transmission and dispatch companies)
1MF treasury (management finance)
WAPDA

Main function of receivable and payable:


In this section there is recording of transaction of the free supply
and other recording of the transaction which is given from the
other companies.

Example:
An employee of GEPCO wants to send his free supply to the
LESCO due to his family then LESCO send the free supply on the
behalf of GEPCO.
In this section there are 82 to 85% transactions related to
the free supply.

Free supply:
It is a core function of the receivable and payable.
Facility of free units is provided to all employees is called as free
supply. This facility is provided with the scale wise such as,

Scale

Free units

1 to 4
5 to 10
11 to 15
16
17
18
19
20
21

100 per month


150 per month
200 per month
300 per month
450 per month
600 per month
880 per month
1100 per month
1300 per month

All the employees can avail this facility anywhere in Pakistan


except Karachi.
Employee can consume all the units either in one month on
in one year.
T.V and Meter fees are not exempt for employees.

Journal voucher:
Creation of receivable and payable is called as journal voucher;
this function is performed in this section on monthly basis.

Example:
If an employee of GEPCO takes loan from GEPCO and transferred
to LESCO but is still liable to repay the loan then GEPCO debit that
employees account and credit the LESCO account.

1.Wrongly deposit:
When one companys fund is wrongly transferred to other
companys account then receivable and payable department
adjust that wrong transaction.
Example:
If consumer of GEPCO submits the bill payment in LESCO account.
At the end of month after checking account, it is shown that
LESCO have more funds. Then LESCO credit GEPCO and GEPCO
debit LESCO.

2.Statement of account:
After every quarter each companies issues statement of account
to another company. Then reconciliations are made to tally
accounts.
These four functions are mainly performed by receivable and
payable department.

Distribution companies:
These companies which purchase or supply electricity and receive
bill payments. These are called DISCO.
Generation companies:
These companies produce electricity and are called producer or
GENCO.
These are follows

GENCO
1

Jamsho
ro

Sindh

GENCO
2

Gudu

Sindh

GENCO
3

Muzafa
r garh

Punjab

GENCO
4

Lakhra

Sindh

3.MF Treasury/CPPA:
Central power purchasing agency
Distribution companies cannot directly purchase electricity from
generation companies. So, they purchase from CPPA & CPPA from
GENCO.

GENC
O
CPPA
DISC
O
LESCO
GEPCO
MEPCO
FESCO
PESCO
HESCO
SEPCO
TESCO
ISCO
QESCO

CPPA issues invoices to distribution companies. These invoices


include income tax.

4.NTDC:
National transmission and Dispatch Company
All the decisions about the placement of grid,
transformers and lines are related to this head.

5.PEPCO:

Pakistan electric power company


This is the holding company of all and has controlling
authority.
Head of PEPCO is in Lahore.

Consolidation:

There are 60 units of GEPCO through which our financial


statement will be completed.
There are 5 circles in the electricity sales. It is an operation
system, means through which we are earning money.

Operational system:
R.O.: keep billing record.
All those customers who have complain then they go to the
customer services and gives complain.
GEPCOs debtors are their customer to whom we are billing. These
come in revenue office.
The division NO.1 and R.O.1 are maintaining the record and up to
date the system Manager operation control all the activities. in
the cant circle there is a operational manager cant. All the
subdivisions and the divisions send money to head quarter
together.

Compile section:
Convert trail; balance into the soft form. These trail balance get
from the all accounting units or every circle. There are section
codes from 0 to 9
Section code
0
1
2
3
4
5
6
7
8
9

Name
Balance sheet
Balance sheet
Balance sheet
Balance sheet
Operating revenue
Salary expenses
Salary expenses
Salary expenses
Salary expenses
Salary expenses

Note of account:
Note of account includes working of the account. In every month
quarterly the financial statement is made and analysis of this
statement.
Every record is maintained in the hard form because in this way it
is consider a evidence.

Working in consolidation:
In this section the monthly trail balance of every account

Sir Faisal

Then the posting of these account in excel


After posting there is tally of account
Then notes of account are made
Then made p/L statement
Then made balance sheet

Trail
balance
monthly

Posting
on excel

Tally

Balance
sheet

Profit and
loss
account

Notes of
account

Banking sector:

Core function:

Collection money
Calculation of money
Reconciliation of statement
Salary consume the remaining money give to WAPDA

Collection of money:

All abnks
of a
region

Head
Bnak of
the region

WAPDA

Head
quater