COMSATS UNIVERSITY

LAHORE CAMPUS

COMSATS University Islamabad, Lahore Campus

KOTADDU POWER COMPANY LIMITED

DISTRICT MUZZAFARGARH

SUPERVISED BY:

DR. TAMANIA KHAN

(ASSISTANT PROFESSOR)

SUBMITTED BY:

MUHAMMAD ALI RAZA

FA20-BAF-057

28-11-2023

DEPARTMENT OF MANAGEMENT SCIENCES

1.5 KM DEFENCE RD، OFF RAIWAND ROAD, LDA AVENUE PHASE 1 LDA

AVENUE, LAHORE, PUNJAB 54000

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Acknowledgment
In the name of ALLAH, who has granted me with enough motivation to do my degree and to
do my internship in KAPCO company. Starting this internship was both hard and rewarding
for me and I feel thankful for those who have helped me in doing this.
I would like to thank the manager accounts Mr. Faheem Masood who has helped us a lot in
finishing the internship and completely sharing their knowledge with me. Other all the
workers who were there in the company helped us doing the internship, I would like to
mention Mr. Nabeel, Amir Shb, Atta Shb, Abdul Malik, Shabbir Shb. They have supported us
very much to complete our internship, without their knowledge we could haven’t done this
internship this way. Throughout the internship the kind and motivating words of Manager
Faheem Masood, unwavering support his wise advice and word of encouragement helped me
feel comfortable and understand things better. I want t thanks everyone at KAPCO for
making the office a nice place of work for me.
Finally, I am veery thankful to the COMSATS university for giving m the chance to do this
internship. The school dedication to hands on learning made it possible for me to do the
internship. Whatever I have studied in my degree programme when I use it in practical life
then it have helped me save my time because I was aware of everything in the university.
I would thanks to my family, friends and relatives who has helped me in my hard time during
this internship without their encouragement, support I couldn’t have done this. Their faith in
my skill pushed me forward, and I’m thankful for the strength they gave me.
This internship has proved to be a turning point in my career and I am very thankful to
everyone and everything that helped make it happen. Their work has not only shaped this
report, but it has also changed my way of thinking about the accounting and finance, the way
I think about it.
Contents
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INTRODUCTION...........................................................................................................................................

OVERVIEW OF HOST ORGANIZATION...................................................................................................

Vision..........................................................................................................................................................

MISSION....................................................................................................................................................

BUSINESS OPERATIONS............................................................................................................................

ORGANIZATIONAL CHART...................................................................................................................

SWOT..........................................................................................................................................................

SRENGHTS............................................................................................................................................

WEAKNESS...........................................................................................................................................

OPPURTUNITY.....................................................................................................................................

THREATS...............................................................................................................................................

MARKETING STRATEGY.......................................................................................................................

Power Purchase Agreement....................................................................................................................

Gas Supply Agreement............................................................................................................................

Oil Supply Agreement.............................................................................................................................

BUSINESS PROCESS ANALYSIS...............................................................................................................

Power station...............................................................................................................................................

Contracts and procurement..........................................................................................................................

Working process in purchase department of KAPCO............................................................................

Tendering process.......................................................................................................................................

Payment Approval.......................................................................................................................................

PROCUREMENT STEP.................................................................................................................................

Information gathering:.................................................................................................................................

Supplier contact:..........................................................................................................................................

BACKGROUND REVIEW........................................................................................................................

NEGOTIATION..........................................................................................................................................

FULFILMENT............................................................................................................................................
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MAINTENANCE........................................................................................................................................

RENEWAL.................................................................................................................................................

EMERGENCY PURCHASE......................................................................................................................

INTERNAL AUDIT.......................................................................................................................................

Audit planning.............................................................................................................................................

Risk Assessment..........................................................................................................................................

Financial transactions..................................................................................................................................

Documentation............................................................................................................................................

Pension fund................................................................................................................................................

Software..........................................................................................................................................................

Learning as intern............................................................................................................................................

Risk management........................................................................................................................................

Time management.......................................................................................................................................

Exact and QW4...........................................................................................................................................

Working as internee........................................................................................................................................

Weekly report..................................................................................................................................................
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EXECUTIVE SUMMARY
The goal for doing this internship was to polish my skills and acquire understanding of
financial sector, and to put it into practice what we have learned through degree program.
This report deals with different sectors of KAPCO, a well-known organization. There is a lot
of information about the company’s finance department and other operations. It goes into
greater detail about the company’s mission and vision as well as its history, marketing
strategies and competitive edge for the interns to learn and grow.
In the first part of the report organizations mission and vision is carefully laid which are very
important for the company reputation which help other person understand the company well.
The history of the company is told which shows how the company came into being and how
it has evolved from beginning to know. The report describes the success of KAPCO and its
commitment to professionalism and customer satisfaction.
The next section examines the company marketing plans, describing the company strategies,
use of technology and interaction with client. This further tells how company delas with
existing clients and new clients.
The next in report we talk about the company plans for competing in the market. In that part
we conduct the swot analysis of the company. The strengths and weaknesses of the company
is described in that portion.
The next part is through look to KAPCO business process, showing how efficiently and
effectively the company works with clients, runs its business and use of technology solutions.

The report then shifts to my learning experience, explaining their duties, daily task and the
useful skills that I have gained during the internship. It shows how important mentorship, real
world experience, and a supportive workplace are. This shows how KAPCO has make an
ideal learning environment for intern.
Overall, the internship report gives you a lot of information about KAPCO, including the
company mission history, marketing strategies, competitive edge, business process, and how
it helps its intern to have a good learning experience. As a company with a life of almost 27
years, KAPCO is dedicated to its mission and vision and is always coming up with new ways
to stay ahead of competition. The company commitment is always getting better, and the
valuable learning opportunities it gives interns shows that it is better and the valuable
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learning opportunities, and clean environment they provide to their interns to gain knowledge
that would help them in the future.
At the end of the report weekly summary of internship is attached that describe the daily task
that I have done as intern in the organization that are both the practical work and the learning
from the persons working there.

INTRODUCTION
After doing the internship at KAPCO in KOTADDU, PUNJAB PAKISTAN. I realized that
just having the book knowledge is not enough for anyone to grow in today’s corporate life.
The main knowledge you get when you go to industry and see how practically things work in
the real world. For this our university helps students connect what they have learned in class
with the real life, our university encourages us to do internships. This give us chances to learn
practical things and understand how book knowledge is connected to real life problems. So
for this reason I have done internship in KOTADDU POWER COMPNAY LIMITED.
In doing this internship I got the chance to work with talented peoples and gain knowledge
from their experience.
During the time period of 06 weeks of my internship I have learned the process of finance,
how the finance department of KAPCO deals with finance and how they secure their data in
books and in computer. How internal and external audit is done in the company (annually,
monthly or quarterly), how procurement department of company works. I also have talked
about the working as intern that was assigned to me by the professionals I have done as intern
in the company.

OVERVIEW OF HOST ORGANIZATION

HISTORY
Until 1987, WAPDA was the only monopoly in Pakistan, it was the only organization that
was operational to meet the growing demand of electricity in Pakistan. It was a 1600 MW
combining cycle powerplant that was operational in the small town of Pakistan KOTADDU.
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In 1996, WAPDA privatize KAPCO by giving it to investors “International Power” of UK

for 36% of company by selling their shares to the management in return for ownership of
company.
The company is located on 280 acres of land, the company has 3 blocks and the blocks
contain machines from different make that help company to run daily operations. Production
department is responsible for operations of plant and the maintenance department is
responsible for the maintenance of plant. The forecast department is for making the forecast
for the future planning like they must maintain the raw material supplies for the future use of
company.
The company maintain its inventory for 21 days include furnace oi, diesel. It also has high
capacity of spare part that are placed in store for emergency needs. The company main
purpose is to produce required amount of electricity and to sell it to WAPDA. The company
is certified by iso (International Standard Organization.)

Vision
Our goal is to become the top power production firm that satisfies the need of clients and
goes above and beyond for its investors.

MISSION
- To be a responsible corporate citizen
- To maximize the shareholder return
- To provide reliable and economical power for our customers
- To excel in all aspects relating to safety, quality, and environment
- To create work environment for employees that provide job satisfaction and
opportunity for career growth for employees
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BUSINESS OPERATIONS
ORGANIZATIONAL CHART

Organizational chart taken from https://www.kapco.com.pk

SWOT
SRENGHTS
- KAPCO was the first company in the country to generate and distribute power
nationwide.
- KAPCO has trained motivated and hardworking persons
- IMS by SGS’s ISO 9001, 14001 and 18001 certifications
- The machinery they are using are of extreme level like there is no competitor to their
machinery
- Modern software’s are being used for quick and efficient system
- Access to top management is simple
- It is the biggest electricity supplier in pakistan
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WEAKNESS
- WAPDA is the only customer, so they have to make electricity only per the required
quantity of WAPDA
- No increase in the production of electricity in past ten years
- KAPCO is encountering high competition due to proliferation of solar power system
and the entries of new power plants in Pakistan
- QW4 system is not fully automated.
- Pay tax started in 2006 after the exemption of 10 years!
- Junior staff poor communication and computer skill

OPPURTUNITY
- To improve their productivity system since they are producing electricity from the old
machineries.
- They should advance their technology as per future needs.
- Should change their standards according to the the latest standards.
- Should advanced software’s that are being used for data

THREATS
- Due to new competitors stronger offers, KAPCO management will encounter
numerous technical workforce issue
- The largest threat that KAPCO may face is losing its customer due to lack of modern
equipment.
- The loss of data from computer

MARKETING STRATEGY
The KAPCO has not do it marketing in that much way because they have only 1 main
customer in PAKISTAN
That is WAPDA. The company is in an agreement with WAPDA in which they signed a
tariff with WAPDA that has ended recently in 2021.
KAPCO entered a Power Purchase Agreement-PPA with WAPDA, Gas Supply Agreement-
GSA and Oil Supply Agreement-OSA.
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Power Purchase Agreement

This deal between KAPCO AND WAPDA include the company’s capacity as a purchase
agreement for electricity. When it comes to infrastructure, finances, procurement, and human
resources. KAPCO has solid plans in place to guarantee dedication of resources. This briefly
states that all the electricity produce by KAPCO will be sold to WAPDA

Gas Supply Agreement

Sui Northern Gas Pipeline Limited and KAPCO had a deal call GSA that guarantees KAPCO
would get specific amount of gas from SNGPL.

Oil Supply Agreement

KAPCO and Pakistan State Oil PSO linked in with an oil deal. Pso stores, distributes and sell
a variety of petroleum, lubricant and petroleum all over Pakistan. It is biggest oil corporation
in Pakistan. They supply the required amount of oil to KAPCO whenever they need it.

BUSINESS PROCESS ANALYSIS

Power station
The power station have 2 departments 102 and 103. 102 deals with power generation and 103
deals with the finance department. the payments are made in accordance with the order term
with credit period 7,15,21 and 30 days whichever is due. The accounting department is
responsible for all the financial process of organization.
All the transactions are saved within the organization pc’s and through software’s everyone
has access to the data.
Contracts and procurement
In order for the company to get benefits they refer to the provisions of good or services in
appropriate quantity and quality, at appropriate time and location and the minimum cost with
the maximum quality. This task is usually carried out in the purchase department run by the
purchasing department. whenever it comes for the purchase in KAPCO weather it is assets,
transport, labor expenditure, professional services the company conduct a cost benefit
analysis. To choose the best supplier they have a tender box where the best suppliers that are
willing to supply material put their quotes and the tender is opened every Thursday and then
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the suppliers with the minimum cost and best quality is selected by discussing with the store
in charge whether the product is suitable or not.
Working process in purchase department of KAPCO
- Verification of application
- Selection of seller
- Tenders
- Analyzing the offers
- Setting the budget for specific purchase
- Entry at the time of order received.
- Payment (tax included)
- Using software to store information.

Tendering process
The bids for the required product is placed in the tender box, all the bids are placed in the
tender box till the last date of tender opening, once the box is opened the technical officer
reviews the comparison statement, looks into any technological concern, look at post
purchase price, and make sure to check the brand of the company. The next step is to
communicate his thoughts and opinion to the buying department. After that the deal is done
by talking to suppliers. Once the deal is confirmed the details are send to associated bank for
the approval of payment, if the product is to be imported then the payments are done by LC
(letter of credit) and the payment is released when the product is arrived in the company and
the store head verifies the product.

Payment Approval
Upon receipt and local processing, the bank is informed of the invoice arrival. The
registration is handled by AM Reports. They get invoice from sale department once all the
necessary approval has been done. A payment invoice of account payable will be made and it
will be attached with the purchase order. Payment will be done in advance through bank. The
payment is then released when the product is arrived at port. There are 3 modes for the
transportation of the product, by plane, by ship or by road.
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PROCUREMENT STEP
The procurement method has arises from a globally owned method arbitrage (to put it on
other way to find cheaper from somewhere else).
Procurement lifecycles consist of 7 steps
Information gathering:
you need to gather information for the vendor that is matching your requirement unless you
should have relation with that vendor.

Supplier contact:
Once information is gathered the next step is to contact the supplier, submit a request for
quotes, request for proposal, request for information to tender and keep in touch with
supplier.

BACKGROUND REVIEW
All follow up services requirements, including installation, maintenance and warranty
inquiries are looked at the time of purchase

NEGOTIATION
Pricing, availability and customization are done at the time of purchase, after the purchase
has been made then no negotiation can be made

FULFILMENT
The supplier shall prepare the product and ship it, deliver it and pay for it in accordance with
the condition of the contract.

MAINTENANCE
Maintenance of the product is done timely as mentioned at the time of purchase

RENEWAL
When the company use a product, it get depreciate after some time and it is the time to
change the product so company analyze their relation with that supplier if that supplier suit
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them in the past time so the will again give the contract to that supplier otherwise they will
opt for a new supplier.

EMERGENCY PURCHASE
Since KAPCO is a manufacturing company so there is always a chance that here might an
emergency will cause so in this case the machines might get destroy to stop working. So in
case the engineers are permitted to give an urgent request for the required product and the
procurement department has to arrange the product within minimum time so that the work
does not stop.

INTERNAL AUDIT
The internal audit has been done in the KAPCO they have given the internship to the auditors
firm students. The work is to conduct the internal audit of the company through the year. Like
on monthly basis, quarterly and weekly whenever needed.
Audit planning
The internal audit team makes a plan to find out what needs to be checked inside the
organization. For this they conduct analysis what company need to achieve in upcoming time.
It is a kind of road map that help them to put their efforts on.
Risk Assessment
Auditors pay close attention to company daily task, this is the place where they look for
problems or places where things could go wrong. This help the company finds the risk and
weak spots in process and help to fix them so they can be save from long term error or fraud
in company.
Financial transactions
To confirm that everything is working good in the company so the auditors pay a focus on
financial transaction like money coming in and going out for this they usually pay a big
attention to PETTY CASH( cash for daily basis office operations).
Documentation
The track of all the task done during the audit are Safed in a place it can be hard form or soft
form, after the full audit has been completed the documents are prepared as a report and
given to te organization.
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Pension fund
The annual pension fund is determined, after 25 years of service employess are eligible for
this title. If an employee has work 10 year for the company prior to their death the family
may be eligible to receive pension. When an employee retires at 60 year of age they receive
six month income, after minimum of thiorty yearof age or service an employee is eligible to
retire with an additionl 2% composition.

Software
Exact
Exact an accounting software is used with in the organization, it s been used from 1996, the
software is managed by the finance manger, the IT manger and general manager finance.
QW4
Store and replacement part utilize QW4 software, when the store get the data it is entered into
software and every department can see the data in the software it include all the payment
invoices and every other detail of the product in the same software.

Learning as intern
Risk management
During this 6 week of internship I have learn about risk management like how the risk can be
minimized. In any kind of risk what are the major steps that I can take to avoid the risk.

Time management
The main and important thing in nature is time management and in this period of internship I
have learned the important of time management. If I have given any situation as intern so I
have to make the descion based on the situation on the time. The time management skill of
mine has got so polished in this internship.
After the internship I realized that the things I have learned wer useful right in school. This is
the skill that will help me in every phase of life.

Exact and QW4

The use of software that were been used in the company, I have learned it very much because
it is very useful for the record keeping of the transaction.
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Working as internee
- Checking general ledger balance and OBP and OBR slips
- Check invoices of department to see how the tax is deducted from different
suppliers.
- Entering bank payment into exact software
- Creating excel worksheet with tax detail for each vendor
- Process of entering all the lroduct in QW4
- Search for inventory controlled lifo, fifo and weighted average
- Learing about letter of credit-LC’s.