INTERNSHIP REPORT ON PAKISTAN TELECOMMUNICTION COMPANY LIMITED

Description
The report describes about the internship report of PTCL.

INTERNSHIP REPORT ON PAKISTAN TELECOMMUNICTION COMPANY LIMITED

MUHAMMAD ARSLAN ALI
Enrollment # 01-122081-063

Submitted in partial fulfillment of the requirements For the degree of Master of Business Administration At

BAHRIA UNIVERSITY ISLAMABAD, PAKISTAN DECEMBER, 2010

ii

ACKNOWLEDGEMENT
First of all I am thankful to “ALMIGHTY ALLAH”. Who gave me the strength, patience, courage and enthusiasm needed to write and complete this report, then to my friends who assisted me in this effort and we worked daylong to accomplish this assignment and to my parents who supported me financially and encouraged me morally. I have a debt of gratitude to all my teachers who taught me throughout my academic career. It was pleasure for me to be sent to The PTCL Headquarters G-8/4, Islamabad. I am very thankful to the honorable internship incharge. I learnt a lot from this training program and this would guide me a lot while selecting my career. I also know how to face the problems and how to find out the ways for their solutions. The preparation of this report was the massive undertaking but the highly competent and experienced employee of PTCL Mr. Asad Qadeer and Mam Sumaira, provided me with all Assistance, information, Advice and suggestion that I needed which contributed importantly to this report.

DEDICATION

This report is dedicated to: Most Lovable “My GRAND FATHER & PARENTS”

EXECUTIVE SUMMARY
It is the requirement of the university for the MBA degree to complete a eight week internship program. After completion of the internship, the students have to submit a written report to the department. The purpose of this study is to get experience of the real life finance practices in order to bridge the gap between the theoretical and the practical approaches and to gather the knowledge of the different aspects of this vast field of profession. Besides, this report also aims to inculcate amongst the students the method of collecting relevant material and shaping it in the forms of formal report writing. This report provides information about the main functions and operations of Pakistan Telecommunication Company Limited. All the information is gathered during on the job training in Pakistan Telecommunication Company Limited. The information contained in this report was mainly collected from two departments, i.e. Budgeting & International accounts. During my internship at PTCL, I experienced a positive and cooperative environment which helped me in my learning. Not only I learned different finance practices but also I came to know that how to behave and talk with seniors, juniors and peers. I have described my experience in detail in the 3rd chapter. The problem I found at the PTCL is that they don’t treat their customers that well and new services like PTCL broadband is not still producing satisfactory results. Management is confused how to get maximum benefit and keep on introducing and eliminating their services and

packages. During the first nine months of financial year 2007-08, total revenue of the company was Rs. 44.0 billion, showing a decline of 9% compared with Rs. 48.5 Billion of the same period last year. However, revenue performance has shown a consistent growing trend from quarter to quarter during the current fiscal year. The operating expenses increased to Rs. 56.9 billion from 33.7 billion only because of VSS cost impact. As a result, there was an operating loss of Rs. 13.0 billion. The non-operating income increased by 11% to Rs.3.4 billion. The Company suffered a loss before tax of Rs. 10.0 billion for the nine month period ended 31st March, 2008. There is a net gain in the provision for tax amounting to Rs. 3.4 billion which reduced the net loss to Rs. 6.6 billion. The consolidated results of PTCL group showed a better picture as the net loss before tax amounting to Rs. 8.3 billion was less due to positive contribution of Ufone. Excluding VSS impact, the group would have shown a profit before tax of Rs. 14.9 billion. Moreover reference matters more then skills and qualities of an employee. Promotion is done on the basis of seniority and experience. It is briefly discussed in 4th chapter. The efforts should be made that PTCL be made independent in its internal matters and ministry of communication may give only guidelines. The officers must be trained to adopt the company culture, soft spoken, good relations with customers and target oriented. Finance and Marketing officers and Engineers may be sending to international seminars/workshops rather than seniority. to get knowledge of new technique and procedures. Promotion should be made on the basis of performance

TABLE OF CONTENTS
ACKNOWLEDGEMENT....................................................................................................iii DEDICATION......................................................................................................................iv EXECUTIVE SUMMARY....................................................................................................v TABLE OF CONTENTS.....................................................................................................vii LIST OF TABLE...................................................................................................................ix INTRODUCTION:.................................................................................................................1 HISTORY OF TELECOMMUNICATION.......................................................................1 EARLY TELECOMMUNICATIONS...........................................................................1 INTRODUCTION OF THE HOST ORGANIZATION....................................................2 COMPANY PROFILE.......................................................................................................2 PRODUCTS & SERVICES...................................................................................................8 VALUE ADDED SERVICES...........................................................................................8 QUALITY OF SERVICE...............................................................................................9 NEW PROJECTS AND SERVICES IN PIPELINE...................................................10 COMPANY ANALYSIS:....................................................................................................11 SWOT ANALYSIS OF PTCL.........................................................................................11 STRENGTHS ..............................................................................................................11 WEAKNESSES............................................................................................................12 OPPORTUNITIES.......................................................................................................14 THREATS....................................................................................................................16 FINALCIAL ANALYSIS....................................................................................................17 LIQUIDITY ANALYSIS ................................................................................................22 ACCOUNT RECEIVABLE TURNOVER .................................................................22 ACCOUNT RECEIVABLE TURNOVER IN DAYS ................................................22 WORKING CAPITAL ................................................................................................23 CURRENT RATIO AND ACID- TEST RATIO.........................................................23 CASH RATIO ...................................................................................................23 SALES TO WORKING CAPITAL.............................................................................23 PROFITABILITY ANALYSIS .......................................................................................23 TOTAL ASSET TURN OVER RATIO .....................................................................24 DUPONT RETURN ON ASSETS ..............................................................................24 OPERATING INCOME MARGIN (PERCENT)........................................................24

OPERATING ASSET TURN OVER .........................................................................25 RETURN ON OPERATING ASSET (PERCENT).....................................................25 RETURN ON INVESTMENT (ROI) (PERCENT) ....................................................25 RETURN ON TOTAL EQUITY (PERCENT)............................................................26 INVESTOR ANALYSIS..................................................................................................26 DEGREE OF FINANCIAL LEVERAGE (TIMES)....................................................26 RATIO’S..........................................................................................................................26 LONG TERM DEBT PAYING ABILITY......................................................................28 WORKING EXPERIENCES...............................................................................................30 LEARNING IN PTCL AS A INTERNEE.......................................................................30 STRUCTURE OF BUDGET DEPARTMENT............................................................30 WORKING...................................................................................................................30 DUTIES AND RESPONSIBILITIES..........................................................................31 FINANCE DEPARTMENT.............................................................................................32 BUDGET DEPARTMENT..............................................................................................34 RECOMMENDATIONS.....................................................................................................38 CONCLUSION....................................................................................................................39 REFRENCES.......................................................................................................................40 ONLINE REFERENCES.....................................................................................................41 APPENDIX-A......................................................................................................................42

LIST OF TABLE
1. RATIO ANALYSIS……………………………………………………………….17

INTRODUCTION:
HISTORY OF TELECOMMUNICATION
The history of telecommunication began with the use of smoke signals and drums in Africa, the Americas and parts of Asia. In the 1790s the first fixed semaphore systems emerged in Europe however it was not until the 1830s that electrical telecommunication systems started to appear. This article details the history of telecommunication and the individuals who helped make telecommunication systems what they are today. History of telecommunication is an important part of the larger history of communication EARLY TELECOMMUNICATIONS Early telecommunications included smoke signals and drums. Drums were used by natives in Africa, New Guinea and South America, and smoke signals in North America and China. Contrary to what one might think, these systems were often used to do more than merely announce the presence of a camp. In 1792, a French engineer, Claude Chapel built the first visual telegraphy (or semaphore) system between Lille and Paris. This was followed by a line from Strasbourg to Paris. In 1794, a Swedish engineer, Abraham Decants built a quite different system from Stockholm to Drottningholm. As opposed to Chapel’s system which involved pulleys rotating beams of wood, Edelcrantz's system relied only upon shutters and was therefore faster. However semaphore as a communication system suffered from the need for skilled operators and expensive towers often at intervals of only ten to thirty kilometers (six to nineteen miles). As a result, the last commercial line was abandoned in 1880. • TELEGRAPH AND TELEPHONE

• •

RADIO AND TELEVISION COMPUTER NETWORKS AND THE INTERNET

INTRODUCTION OF THE HOST ORGANIZATION COMPANY PROFILE
With employee strength of more than 29,500 and customers less than 6 million, PTCL is the largest telecommunications provider in Pakistan. 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 Pakistan’s 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. However, the telecommunications sector has been deregulated in recent years leading to a production of first domestic and more recently international cellular phone providers. It is a part of the overall strategy in the sector to privatize the public monopoly, or what is effectively a natural monopoly. VISION STATEMNET “To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders 'value'.” MISSION STATEMENT To achieve that vision PTCL has the following viewpoints. • 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 VALUE • • • • Professional Integrity Customer Satisfaction Teamwork Company Loyalty

HISTORY OF PTCL Telecommunication is older than Pakistan, before the independence of Pakistan this sector was under the Indian post and telegraph department. Pakistan Telecommunication Corporation (PTC) set its journey in December 1990, taking over operations and functions from Pakistan Telephone and Telegraph policy, Department encouraging under private Pakistan sector Telecommunication Corporation Act 1991. This coincided with the Government's competitive participation and resulting in award of licenses for cellular, cardoperated 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 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. Pakistan Telecommunication Company Limited (PTCL) was incorporated as a public limited company,

with

the

objective

of

providing

domestic

and

international

telecommunication and related services. About 95% of the assets and liabilities of PTC, at net book value, were transferred to PTCL whereas the remaining 5% assets were vested in PTA, NTC etc. The vesting of assets to new entities took place with effect from 1st January 1996. PTCL is listed on the Karachi Stock exchange and comprises about 30% of the weight age of the KSE 100 index. In 1995 under the Chairmanship of Mian Javed, the PTCL in its first four years installed nearly 2 million telephone lines, about 200 percent increase in total capacity. Today, the number of working lines has been raised to about 2.82 million. The fixed line telephone density is 2.2 telephones per thousand people, which is higher than in some countries of the region. The number of telephone lines is expected to total nearly 4 million within the next 2 years. In addition PTCL started a very aggressive roll out of the conversion of the old analog telecom technologies to digital telecom including installation of Fiber Optic backbone between Karachi and Lahore in the initial phases. The company is in process of enhancing organizational and business proficiency through vertical integration and horizontal diversification. At the same time, cross-national ownerships, operations and partnerships are being evaluated with a view to developing and diversifying the business. With employee strength of 29500 and customers less than 6 million, PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator in the country with 0.8 million V-fone 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 Pakistan’s economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan. SUBSIDIARIES U-fone

(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 beginning, 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. U-fone 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 execution 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). U-fone successfully maintains its market share of 25% by increasing its subs to 18.5 million. During the year, U-fone successfully completed the launching of sites under Phase V in existing as well as new cities and towns by investing more than US$ 575 million. This has increased the asset base of U-fone from rupees 33.5 billion to 55.9 billion. To further enhance the subscriber base and strategically position the company in the growing telecom market, U-fone has finalized a network expansion for Phase VI contract amounting to about US$ 126 Million. U-fone currently, has network coverage in more than 3,756 locations throughout the country. U-fone's operational performance has been very encouraging despite hard competition in Pakistan telecom market, which has led to reduction of prices to bare minimum level. U-fone managed to improve its revenue and operating profit by 35% and 47% respectively, as compared to the last year through insistent policies and exercising strict control over expenses. PRIVATIZATION The growth of the cellular sector in Pakistan can also be attributable to good governance policies of the government of Pakistan and the Privatization Commission. In April 2006, Emirates Telecommunication Corporation, which is commonly known as Etisalat, has assumed management control of Pakistan Telecommunication Corporation Ltd – part of the $2.6bn deal to buy a 26% stake in PTCL. The successful

Privatization of PTCL, and consequently U-fone, is hailed as ushering in a new era for telecommunications in Pakistan. Now, under the management of Etisalat, U-fone will concentrate on customer needs and benefits and is more determined than ever to be the leading cellular player in the market. U-fone has been known for providing superb propositions and quality service to its customers. With the new expected investment, U-fone can now aggressively expand its network coverage. Performance As mobile users in the country have reached over 30 million at a very rapid pace, U-fone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 6.8 million and a market share of nearly 28%. U-fone has seen a subscriber growth rate of over 200% in the last year, and since the start of 2005 U-fone added nearly 5 million subscribers onto its network. Subsequently the growth in subscriber base caused revenue to be doubled. In the recent year its DSL services are the major contributor in its revenues. Product and Pricing Since the recent telecom de-regularization and the issuance of two more GSM licenses, the Pakistan telecom market has become very competitive and is changing at a very fast pace. U-fone once again set a trend in the market by introducing simplified tariffs. The company has two main product lines (prepaid and post paid) for all its valued customers. To capture every segment of the market, U-fone has further customized its packages. Postpaid is further differentiated into 4 plans including a very competitive Zero Line Rent package. U-fone has introduced a very simplified tariff structure for its customers with a flat rate of Rs. 1/ 30 sec to any operator all over the country. Similarly Ufone has the most competitive SMS, GPRS and MMS rates having the lowest international SMS rate at Rs.1.50. These simplified tariff plans and user-friendly packages have greatly helped U-fone in becoming the fastest growing operator in the country. U-fone understands the need to communicate effectively and efficiently at all levels of society and its

various products are catering for the needs of the Pakistan corporate market. International Coverage U-fone provides International Roaming facility with more than 150 international operators across 79 countries. U-fone has GPRS roaming agreements with several international operators and also provides prepaid roaming facility to selective destinations. Network Coverage U-fone has always believed in a solid commitment to growth, security and reliability. Therefore, U-fone has always balanced its expansion efforts and quality of service. With a total current investment of $400 Million, U-fone has network coverage in more than 300 cities and towns and across all major highways of the country. U-fone has been instrumental in the growth of the cellular market in Pakistan. It is a company committed to excellence. Under the new vision of Etisalat and with the support and collaboration of its employees and vendors, U-fone aspires to be the best in the market by offering customer focused products. Historic Background • • • • • • • 1947 Posts & Telegraph Dept. established 1962 Pakistan Telegraph & Telephone Dept. 1990-91 Pakistan Telecom Corporation ALIS: 850,000 Waiting list: 900,000 Expansion Program of 900,000 lines initiated (500,000 lines by Private Sector Participation 400,000 lines PTC/GOP own resources).

• • • • • •

1995 About 5 % of PTC assets transferred to PTA,FAB & NTC. 1996 PTCL Formed listed on all Stock Exchanges of Pakistan 1998 Mobile (U-fone)& Internet(PakNet)subsidiaries established 2000 Telecom Policy Finalized 2003 Telecom Deregulation Policy Announced 2006 Etisalat Takes Over PTCL

MONOPOLY STATUS Pakistan Telecommunication Company Limited has monopoly over fixed line voice telephony expires on 31s1 December 2002 and we do not anticipate any extension. However, armed with various entry barriers to fixed line telephony, such as large capital requirements and first mover advantages, we believe Pakistan Telecommunication Company Limited will not be substantially affected for several years thereafter.. Pakistan Telecommunication Company Limited has already adopted a flexible approach toward the private sector and has implemented BOT contracts with private sector participation. Pakistan Telecommunication Company Limited has latest expansion plans also envisage private sector participation over the next two years and interest has been solicited for installation of 270K lines. In effect, the sector is already open to private .sector participation, though without threatening Pakistan Telecommunication Company's monopoly as these projects function under Pakistan Telecommunication Company Limited licenses and may take the form of a flexible service model like franchising, sub-agency arrangements, and small Build. Own.

PRODUCTS & SERVICES
VALUE ADDED SERVICES
Marketing department is providing value added services to its

subscribers (both individual & organizations) and aims at improving its efficiency by offering discounts and other benefits to its subscribers. Marketing Department is offering the following value added-services to its subscribers. • • • Toll Free Numbers. Universal Access Number. Digital Facilities. (Call transfer, call transfer on busy, call transfer on no reply, conference call, abbreviated dialing, wake up call, call waiting, hotline) Domestic and Commercial ISDN (Integrated Service Digital Network) Service. Internet/E-Mail Services. Digital Leased Lines/Cross Connect. CLI Service.

•

• • •

ADVANTAGES OF INTEGRATED SERVICE DIGITAL NETWORK. • • • • • High speed computer to computer data communication Computer based videoconference. Caller line identification. Eight times faster than fax transmission. High quality video communication.

QUALITY OF SERVICE PTCL has improved considerably in this area. At present there are much fewer complaints pertaining to dropping of calls, cross talk and wrong dialing due to achievement of 82% digitalization of its network but there are still some complaints like late delivery of bills and excessive billing, poor response from 17, 18, 109 and higher faults. PTCL is taking

following measures to further improve the quality of service: • • • • • • 109 • • • Upgrade old Outside Plant Good management of digital transit/local exchanges Optimize optical fiber links and digital radios Effective monitoring and fault management Achieve call completion ratio of 50% inland and 55% on international calls Improve response time and quality on 17, 18 &

Modernize Directory service and distribution Expand and improve Customer Service Centers Create customer care culture

• Providing diversity on main arteries for National & International circuits including leased lines to mobile operators for interruption free service during breakdown and Universal Access Numbers __ access to mobile networks. NEW PROJECTS AND SERVICES IN PIPELINE PTCL is also in the process to complete the following projects: • • • • • • • Addition of 300,000 new telephones during 1999-2000. Replacement of 229,000 EMD lines with Digital lines in 19992000. 160,000 Wireless Local Loop Payphones. Turnkey project for 275,000 lines contract with ZTE-China Wanbao. Expansion of Internet service - 150,000 new connections. Quetta-Shikarpur Optic Fibre Cable installation work in progress Global Mobile Personal Communication by Satellite (GMPCS)

• • • • • •

Voice Messaging Service. Video Conferencing. Intelligent Network Platform Electronics/Radio Based Burglar Alarm System/Service Prepaid Calling Card Service for NWD Calls Voice Messaging Service

COMPANY ANALYSIS:
SWOT ANALYSIS OF PTCL
Strengths are positive internal characteristics that the organization can exploit to achieve its strategic performance goals. STRENGTHS • Biggest Foreign Exchange Earner PTCL is the biggest source of foreign exchange for Pakistan. It earns a lot of foreign exchange form its international traffic and interconnect’s revenue. • Modern Technology PTCL is running modern technology to develop its products and services and improve the quality of services. In this connection it has replaced the old exchanges with new digital exchanges. It has computerized billing system for domestic landline customers. Due to this technology thousand of complaints have been reduced. PTCL has also entered in the business of Mobile phone, internet services, IPTV (PTCL SMART TV). Its product line is continuously expending. Also it now it has licenses of SMW3 and SMW 4, two optical fiber cables. Incase one gets disconnected under sea; other can take its load of traffic.

•

Good Will Good sound image is prolonged through innovation and as long as

a company has well image, its share market will be growing. It should be remembered that even very good image, starts smelling badly without innovation. PTCL was privatized and its shares were purchased on higher price because PTCL is the biggest telecom company of Pakistan and stands among higher ranks of the telecom industry of sub continent region. • Largest Installed Network PTCL has the largest nationwide installed network infrastructure capability which includes switching, transmission, fiber optic backbone, co-location and international capacity. This provides an ample space and unique state to offer these services on turnkey basis to the upcoming list of carriers including Mobile, WLL (Wireless Local Loop), ISPs (Internet Service Providers) and Resellers. • OSS (One Stop Shop) Provider To simplify IPLC ordering and billing, a concept called One Stop Shopping (OSS) was developed. OSS allows an organization to place a single order with a single carrier for two private leased circuits for two offices in two different countries. In the past, an organization had to contact each carrier in each country to order the two circuits, which included two separated invoices. OSS consolidated the billing for both circuits into a single invoice, handles all currency issues, and allows the organization to report all problems from either circuit to one carrier. WEAKNESSES • Communication Barriers There is ineffective communication between the higher and lower staff; this is due to less qualified lower staff. During process of

restructuring many new employees with greater qualifications are recruited. However the lower permanent employees, who either didn’t take VSS by themselves or VSS was not applicable to them, are having almost obsolete skills incapable for re-usage in new structure. The old employees are not comfortable working with new employees. • Lack of Professional Staff in Region It is observed the offices PTCL in the region lack professional staff and qualification and thus they can’t cope with modern and competitive requirements of the market. • Low Employee Work Morale The morale of older employees is much low. The new employees are really motivated and are well incorporated into corporate culture. But the old employees are not motivated to work. The come late to offices, spend most of the time chatting with colleagues, leaves office early. It is because they consider themselves to be inferior now. A new young, agile employee of nearly half of their age performs work better then them and is getting their supervisor praise. They feel that their experience, years of serving to PTCL and loyalty has gone wasted. • Ambiguity in Strategic Direction PTCL is doing business very well but only to that extent to which customers respond. Though company is transforming itself to “Customer Oriented business” and has declared this year of “Customer Care” but vision is not clearly shred by all. Also it is thoughtful that a company declares a year of “Customer Care” and its employees are on strike sitting in a 42 degree Celsius. Though strike issue has been solved but a company needs a transformation first in its employees. Employee care and customer care should go side by side. Although PTCL is generating revenue from its value added services but it doesn’t have any solid financial strategic outline, which can cope the entire complex financial situation and recovery of bad debts. Also ambiguity exists in

implementation

strategic

financial

plans.

Externally

PTCL

has

competitors so it has no benchmark to gauge financial performance of its different departments with those of competitors.

•

Lack of Training Program There is no proper training program to improve the skill of PTCL

employees to cope with every changing telecommunication sector. Less skilled & inefficient workers are creating hurdles in its growth. Though 8,931,500 Rs. has been budgeted for training year 2008-2009 but is almost equally distributed among Administration, HRD and finance. No need based division of budget is done. Training on employee motivation, team building and about new processes and software are essential. • Essence of Bureaucratic Touch The organization has transformed to company and emphasis is on corporate culture but still the classical touch of a bureaucratic organization exists. Especially some of the officers at the senior or middle management level like to enjoy power in the bureaucratic style and want to see the acceptance of their command down the order. The awareness with modern management concept is the part of the “change of culture” program which has been stated at all management level. OPPORTUNITIES • Increasing Awareness Rate PTCL can show its interest in educating people & increasing literality rate in this way, PTCL will not only fulfill its social responsibility

but will also be able to increase awareness rate & it will be helpful in the expansion of PTCL • Skillful Human Resources PTCL can improve the skill of its manpower by providing them the opportunities of advanced courses that will make them to cope with the ever changing condition in field of telecommunication. • Telecom facilities in the rural areas All the value added services and digital facilities are available only in the main cities of Pakistan like IPTV, DSL etc. PTCL can expand its business by providing value added telecom facilities in rural areas, which is only possible when adequate planning is done. • Addition to the Product line Top management of organization can make additions to its existing product line by providing more services. In this way it can increase its revenue and customer satisfaction. This requires market research. PTCL has already captured the industry so all kind of the opportunities are for PTCL till the end of monopoly. PTCL can launch “Wireless Internet Services” for excelling in telecom sector. • Licensing as a Source of Revenue Private mobile companies are getting license from PTA, which is a source of revenue has also launched its own mobile services. New licenses though will reduce market share for Ufone but will also help in revenue transformation. • IT and Communication: Vehicles of Modern Businesses PTCL being the biggest telecom operator of the country has huge potential for growth. Company can expand its services through innovation. The broad band market is nascent market with very low

levels of penetration. The market potential for broadband is up to 2 million lines and by unique nationwide landline infrastructure PTCL can dominate this segment. THREATS • Unstable Economic and Political Condition of Pakistan The economic situation of Pakistan is unstable. The unstable economic condition of Pakistan is a great threat to PTCL. In strong economic conditions, the growth of business is very frequent. The poor economic conditions increase the inflation rate that decreases the buying power which is very threatening for PTCL. Also political and economic instability creates uncertainness. Stock market and shares can sustain bearish or bullish trend but it cannot tolerate uncertainty. • Decrease in Market Share Due to Competition Entering into the new era of competition may pose difficulties. Many dissatisfied customers may shift to those telecom service providers who they think would offer better services than PTCL, and will increase customer satisfaction. Decrease in market share would decrease the profitability of PTCL, which will be a real threat in near future. PTCL broadband is unable to compete with other private DSL’s like Link Dot Net by Orascom Company limited and Wateen telecom in service quality. Also in mobile sector the share of Ufone has decreased due to entry of China Mobile and Telenor and it can further decrease if more companies will enter. • Increased Competition and Turnover Due to emergence of bulk of WLL, ISP’s, Mobile companies and WLL operators, company would have to compete for quality human capital also. Though the pay structure has greatly improved after privatization of PTCL, but as new employees are on contract so company

should provide competitive pays to its employees. Other wise the human capital trained and developed by PTCL would be captured by bulk of other telecom industry companies.

FINALCIAL ANALYSIS
All the ratios are calculated on the basis of financial statements prepared till this quarter i.e. 9 months period. It is because the audit in company was still in process by the external auditors, KPMG Taseer & Hadi, so after audit the financial statements will be published. The interim financial information has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 ''Interim Financial Reporting''. The condensed interim financial information is unaudited and is being submitted to the shareholders as required by Section 245 of the Companies Ordinance, 1984 and the listing regulations of the Karachi, Lahore and Islamabad Stock Exchanges (Pakistan Telecommunication Limited, 2008). Income tax expense is recognized based on management's best estimate of the weighted average annual income tax rate expected for the full financial year.

The calculation however in some ratios is done on previous year data also, where quarterly ratios were meaningless.

Ratio Analysis of PTCL

Year ended June 30 Key Indicators Operating Gross Margin % 18.1 5 24.67 26.33 34.5 41.63 51.37 2009 2008 2007 2006 2005 2004

(Operating Profit Margin) Pre Tax Margin (EBIT Margin) % 25.2 15.4 Net Margin Performan ce Return on Operating Assets Debtors’ Turnover Return on Equity % 9.28 -2.17 14.45 20.22 25.45 28.2 % TIME S 4.9 2.35 48.86 4.76 5.35 5.14 10.9 6 -3.34 18.76 25.53 34.83 38.46 % 5 -4.25 22.01 26.16 30.46 35.73 -5.45 34.13 39.43 45.5 53.94

Leverage Debt: Equity RATI O 16.4 8 35.6 Leverage Time Interest Earned Liquidity Time Current s 1.5 1.81 2.19 1.66 1.89 2078 Time s 15.4 3 -5.26 46.54 92.07 86.35 64.34 % 6 27.48 27.92 31.28 25.65 23.91 15.85 14.86 14.86 13.87 13.87

Quick Times Valuation Earnings per share (pre tax) Earnings per share Breakup value per share Payout Ratio (after tax) Market Price to Breakup Value Dividend per share

Time s 1.36 1.58 2.03 1.54 1.13 2.67

Rs.

2.75

-0.88

4.66

6.07

7.71

8.5

Rs.

1.79

-0.55

3.07

4.07

5.22

5.72

19.4 Rs. 9 19.19 21.75 20.68 19.61 21.31

122.7 % 83.6 0 65.22 3 38.34 87.42

times

0.88

2.01

2.62

1.96

3.58

1.97

Rs.

1.5

0

2

5

2

5

Market value per share (as on June 30) Market Capitalizati on Historical Trends Rs. (m) 4 Rs. 17.2 4 8 7,92 19 7,064 29 0,700 20 7,060 35 8,275 241 ,965 38.64 57 40.6 70.25 42.15

Operating Results 5 Rs. Revenue (m) 9,23 9 1 Profit/ (loss) Rs. before Tax (m) 4,02 1 ( 4,463) 2 3,744 3 0,974 3 9,296 360 43, 6 6,336 7 1,068 6 9,085 8 7,356 633 81,

Profit/ (loss) Rs. after Tax (m)

9,45 1 2,825

1 5,639

4 0,777

2 6,606 170

29,

Dividend declared Financial Position Paid up Share Capital

Rs. (m)

7,65 0 -

1 0,200

2 5,500

1 0,200 500

25,

5 Rs. (m) 1,00 0 3 Rs. 2,18 3 9 3 2,183 3 2,249 3 1,922 3 2,008 000 32, 5 1,000 5 1,000 5 1,000 5 1,000 000 51,

Reserves

(m)

Shareholder Rs. s’ Equity (m)

9,39 0 5

9 7,888

11 0,913

10 5,475

10 0,014

109 ,100

Current Assets

Rs. (m)

4,22 0

3 9,603

5 3,561

5 0,168

3 9,269 294

48,

Non Current Liabilities Operation al Rs. (m) 2

1 8,57 1 7,646 1 7,460 1,689 1 5,258 126 15,

4,68 ALIS (000) * NOS ALIS Per Employee NOS 168 118 91 89 82 71 1 5,181 5,455 5,568 5,235 837

4,

Table 1

RATIO ANALYSIS

LIQUIDITY ANALYSIS
This shows that the number of days for the receivable outstanding have increased, which indicates that in 2007 PTCL has 86 days for the receiving back their receivables from its customers and in 2008 there is an increase of 14 days because in 2008 days sales in receivables has increased to almost 101 days. This is a not positive sign. ACCOUNT RECEIVABLE TURNOVER The turnover ratio of 2008 has decreased which is a not good sign because it shows that the chances of getting back receivables have decreased. It shows greater amount of sales is in receivables and has not yet been recovered. ACCOUNT RECEIVABLE TURNOVER IN DAYS It indicates that the number of days of the chance of getting back the receivables has decreased as compare to 2007.

WORKING CAPITAL A decrease in the amount of working capital in 2008 shows that it is a deteriorated situation of the company, which shows that it will be difficult for company to be able to borrow on short notice. CURRENT RATIO AND ACID- TEST RATIO This indicates that in 2007 the company had a high ability to meet its current liabilities out of its assets as compare to year 2008. CASH RATIO There is a decrease in 2008 in cash ratio, which shows that the company is not having enough cash to its best advantage. As it is less then 1 and current liabilities have increased also so the overall cash ratio is not satisfactory. It can become difficult for company to meet its immediate cash needs. The greater the cash ratio, the greater it is better for company to meet its short term immediate expenses. SALES TO WORKING CAPITAL In year 2008 the sale to working capital ratio has deteriorated as compared to year 2007, which indicates that company is overcapitalizing its assets. It means that PTCL is able to generate enough sales to meet its obligations. This on one end is a positive sign also that assets are properly utilized. But at the same time it shows that working capital is not invested in assts till this quarter.

PROFITABILITY ANALYSIS
Ratio for this period cannot be calculated as company is in loss till this quarter. This ratio expresses the relationship between net profit after tax and sales. This ratio is the measure of all profitability. It also tells us that how much the company is saving after deducting all the expenses from sales. Net profit margin ratio is also known as return on sales. Higher the net profit ratio, higher the profitability of business. Profitability of a firm is continuously deteriorating for 2007 which has deteriorated even more over the year it is because company sales have

been increased however the increase in operating income was less then increase in net sales. The expenses of company has also increased a lot due to VSS cost and the company is in loss till this period. There is a catch here that the company though has earned greater revenue for these nine period but has shown this revenue as a usage of VSS cost. TOTAL ASSET TURN OVER RATIO This ratio indicates that how well the company has used its total assets in generating sales. This ratio measures the activity of assets and the ability of the firm to generate sales through the use of assets. If both of these have been well managed then the sales would go up or vice versa. Higher ratio is better for business. But due to increased amount of assets and less increase in sales as compared to increase in assets the company total asset turnover ratio has decreased. DUPONT RETURN ON ASSETS The core idea behind this ratio is that both Net Profit margin & Total Asset Turnover have a direct impact on the return on assets ratio (ROA). sales. When these ratios are reviewed together it is called DUPONT Higher ratio is better for company. The company is lacking return on assets. A high profit margin means a high profit per 1Rs of behind as compare to last year as both net profit margin and total asset turnover has decreased. OPERATING INCOME MARGIN (PERCENT) This ratio helps in determining the ability of the management in the running business. It indicates the efficiency of the management. Operating profit shows that what actually is left behind after deducting all direct & indirect expenses from operations. Those expenses and incomes which has no direct relation with the operations but which do happen will be deducted after operating profit giving the net profit before tax and eventually net profit after tax. Higher ratio is better for company. It cannot be calculated for this period because operating loss is occurring due high amount of operating costs involving bad debts and

VSS cost and company has deteriorated position over the previous year end also. OPERATING ASSET TURN OVER The ratio measures the ability of operating assets to generate sales. Higher the ratio is better for company. It means sales of the company has increased in greater amount as compared to increase in operating assets which have also increased. However it has decreased in case of PTCL due less amount of operating assets. Company has greater investments in capital work in progress. RETURN ON OPERATING ASSET (PERCENT) Operating Assets Exclude Construction Work In Progress from property, plant and equipment and added current assets in it. Investments and other long term assets are not included in operating assets. Those assets are included which has a direct relation with operations of a business. Higher return is better for company. The company position has deteriorated as compared to the last year; it is because the increase in company investments in capital works in progress and intangibles (Logo and patent of PTCL). RETURN ON INVESTMENT (ROI) (PERCENT) This ratio determines the total income or the return that is earned by all the providers of the capital (debt or equity). It is used for the evaluation of enterprise performance and earning performance of the firm. Further it measures the ability of the firm to reward those who provide long term funds and to attract the providers of future funds. Higher the ratio, the better it is. The company is lacking behind as compare to last year because company equity has increased due to the increase in reserves however the operating income increase is not sufficient to offset it.

RETURN ON TOTAL EQUITY (PERCENT) This ratio measures the profit earned by the share holders on their invested amount in the company. It measures the return on common shareholders, preferred shareholders and reserves also. Dividends are deducted because its redeemable preferred-stock which is included in the debt and not the equity so if there is any dividend that is to be paid on it then that should be deducted from net profit so that the net figure can be taken which is available to the total equity holders. Higher the ratio, the better it is. The company is lacking behind as compare to last year because company first of all is going in loss for this year. Also the dividends paid are increased in order to have stable market price of share in stock exchange.

INVESTOR ANALYSIS
DEGREE OF FINANCIAL LEVERAGE (TIMES) The degree of financial leverage represents the benefits earned from the funds borrowed. If firm earns more then the funds borrowed then it is beneficial for them. The DFL of the company has increased over the year slightly from 2006 to 2007, which shows that company was effectively managing its borrowed funds and was able to generate good earnings on it. However till these 9 month period, company is unable to sustain its position and due to increased expenses is going in loss. So company is risky to invest in and for the same reason company may would have difficulties in further borrowing of funds from financial institutions.

RATIO’S
EARNINGS PER COMMON SHARE EPS of the company is continuously decreasing over the years. So it shows that the decreased earnings of the company have deteriorated it and the existing owners of the company has earned lesser over the

years. The number of shares has remained same but earnings have been converted into loss, almost this year. PRICE/EARNINGS RATIO The P/E ratio of the company tells the increase in earnings translated into the market price of the shares determined by demand and supply in the market. The P/E ratio has increased over the year in 2007 which shows that market demand of the company shares has increased (price on 30 June 50.48 Rs. as compared to 40.8 on 30 June 2006) and the investors were interested to purchase the shares of the company due to its increased performance. But due to VSS, many diverse restructuring reforms and large amount of Bad Debts company share price is continuously decreasing in stock market to almost 30.59 Rs. BOOK VALUE PER SHARE The amount of stockholder equity contributable to each

shareholder has decreased over the year which is a negative sign. The market value of stock is greater then the book value and is a good sign but it is due to so much fluctuation and uncertainty in stock market. Company management though has promised great potential and image building in eyes of investors. DIVIDEND PAYOUT (PERCENT) The dividend payout ratio of the company has reduced over the year. This shows that company is paying fewer dividends. The reason being the company is the retaining more of the income for future purposes and to have cost effective processes. DIVIDEND YIELD (PERCENT) Dividend yield of the company has decreased over the year. This shows that company is paying fewer dividends and also the market price per share of the company has decreased. This shows that

company is reinvesting its earnings and company is losing its credibility in eyes of investors mainly due to uncertainty and restructuring. Current retained earnings will result in future capital gains for long term investors.

LONG TERM DEBT PAYING ABILITY
DEBT RATIO / SOLVENCY RATIO / DEBT TO TOTAL ASSETS (PERCENT) It indicates the firm’s long term debt paying ability. It indicates the percentage of assets financed by creditors. From the perspective of long term debt paying ability, the lower this ratio the better the company’s position is and as per International Standards it should always be less then 35 %. It tells us the company has 32.2% liability against 100% assets. Previously it was 27.4 % against 100% assets. This shows that company position has deteriorated as large amount of assets are financed by the creditors and debts are increasing. Company is losing its strength to take additional debts day by day.

DEBT – TO – EQUITY RATIO / DEBT TO NET WORTH RATIO (PERCENT) It compares the outsider’s funds / total debt with the share holder’s funds / share holders Equity. It fulfills the same objective of debt ratio. This ratio indicates us that which external party finances the assets up to what extent. From the perspective of long term debt paying ability, the lower the ratio is the better the company’s debt paying position. However the higher ratio indicates the increased amount of debts. The amount of liabilities have increased by not a large amount but employee retirement benefits have tremendously increased to 16,018,903 on March 31, 2008 Rs. from 12,289,626Rs. on March 31, 2007. Also the inappropriate profit has tremendously decreased causing shareholder equity to decline.

DEBT – TO – TANGIBLE NET-WORTH RATIO (PERCENT) This ratio determines the long term debt paying ability of a company. It also indicates that how well creditors are protected in case of the firm’s insolvency. It is a more conservative ratio than either the debt ratio or debt to equity ratio. From the perspective of long term debt paying ability, the lower this ratio the better the company’s position is. The higher ratio of PTCL indicates its poor condition. It is due to the increase in liabilities over the year and decrease in unappropriated profit of the company. So overall the position of company is not very hopeful from financial perspective. The reason being the great structural changes and restructuring. Once restructuring will be completed the financial position will be reinstated as additional costs will decrease. During the first nine months of financial year 2007-08, total revenue of the company was Rs. 44.0 billion, showing a decline of 9% compared with Rs. 48.5 billion of the same periods last year. However, revenue performance has shown a consistent growing trend from quarter to quarter during the current fiscal year. The operating expenses increased to Rs. 56.9 billion from 33.7 billion only because of VSS cost impact. As a result, there was an operating loss of Rs. 13.0 billion. The non-operating income increased by 11% to Rs.3.4 billion. The Company suffered a loss before tax of Rs. 10.0 billion for the nine month period ended 31st March, 2008. There is a net gain in the provision for tax amounting to Rs. 3.4 billion which reduced the net loss to Rs. 6.6 billion. The consolidated results of PTCL group showed a better picture as the net loss before tax amounting to Rs. 8.3 billion was less due to positive contribution of Ufone. Excluding VSS impact, the group would have shown a profit before tax of Rs. 14.9 billion.

WORKING EXPERIENCES
LEARNING IN PTCL AS A INTERNEE
Budget Department: I have worked in this department under the supervision of, Assistant Manager Budget Finance, Sir Amir. STRUCTURE OF BUDGET DEPARTMENT

WORKING • Assistance in preparation, documentation and filing of annual budget

• • • • • • • • •

Preparation of budget input form Preparation of monthly variance report Maintenance of petty cash using SAP Preparation of budget input form Maintenance of petty cash Maintaining data Analyzing the demand File management Preparation of reports regarding incoming projects through capital budgeting techniques

DUTIES AND RESPONSIBILITIES I joined PTCL as an internee, so I have to perform different duties to assist my advisors and office staff. I was working under the supervision of two persons at the time. First one is the Finance Manager and the second person was the Finance Executive. FILE MANAGEMENT The Finance Manager assigned me duty of managing the files. File management includes; • • • Maintaining the arrangement of files Filing the new vouchers in the file of current month Providing the required vouchers from files to the Finance Manager and Finance Executive. EXPERIENCE LEARNED Internship is the first step for every student to enter into the world of practical life. Educational life and practical life has a lot of differences but academic life is the base for the practical life. According to my

experience internship is the best way to enter into the practical life. During internship, students can learn a lot which is more than that they can learn from books. Internship has given a great boost to my knowledge, confidence and experience. It gave me an opportunity to learn in the following areas; • The internship gave me chance to meet with different type of people which have different types of thoughts, behaviors and actions. These people were my colleagues, the customers, senior officers, mentors, members of other departments and higher management of PTCL • When I met with so many types of people, which gave me a big chance to learn more about the behavior of people. • The internship increased the level of my confidence and communication skills as I had to meet so many people and faces them and had to communicate with them on different matters. • This also increased the exposure of my thoughts. During my study period, I was just like to think within the study material approach, but the practical experience gave my mind new ways that I could not think in the study life. I learned the actual implementation of the accounting, finance and mathematics in the real practical life

FINANCE DEPARTMENT
Finance department of Pakistan Telecommunication Company Limited (Headquarter) is coordinating the activities of its sub departments i.e. Budget, Revenue and Tariff. Budget department has three branches i.e. 1. Preparation

2. Distribution 3. Ceiling Preparation branch prepares the budget for the coming financial year. Distribution branch is responsible for allotment of funds to different regions according to their requirements. Before issuing ceiling it sees how much cash is available in the account of Pakistan Telecommunication Company Limited in National Bank of Pakistan. Revenue department is responsible for collection from its customers. Some customers with huge amount of dues outstanding can't pay their bills immediately after a specified time limit, list of defaulters is sent to billing and recovering branch (B &R). Revenue department also sends its daily reports to B & R branch about how much amount it has collected among the bills issued to customers. Tariff department is responsible for setting the charges/rates of domestic as well as international calls. Among domestic calls, there are local calls and long distance calls. Local call charges are usually fixed and are for the calls with in the same city. Long distance charges vary from city to city depending upon the distance between the cities. Tariffs are usually modified at the beginning of each financial year. There is wide difference between local call charges and long distance charges Pakistan Telecommunication Company Limited is adopting the policy of reducing this difference so it is gradually increases the local charges while making reduction in long distance charges. Pakistan Telecommunication Company Limited has made

concerted efforts to collect arrears of dues from its customer. A special task force was constituted for this purpose and the name of defaulters was published in the newspapers to help recovery. The main reason for the increase in the amount of default, however, is that the efforts for recovery starts only after the default has already occupied and the

remedy lies in a major shift in the credit policy of Pakistan Telecommunication Company Limited. Pakistan Telecommunication Company' Limited is considering advance collection, which is already the practice followed by mobile phone companies.

BUDGET DEPARTMENT
In Pakistan Telecommunication Company Limited the Budget Department is a sub department of finance department of Pakistan Telecommunication Company Limited. It is responsible for optimal estimates of budget for Pakistan Telecommunication Company's main head of Accounts and its allocation to particular regions of Pakistan Telecommunication Company Limited. There are three branches of budget department: 1. Preparation Branch. (Budget-1) 2. Distribution Branch. (Budget-11) 3. Ceiling Branch. PREPARATION BRANCH Preparation Branch is responsible for the preparation of budget for all the main heads of Accounts of Pakistan Telecommunication Company Limited. Preparation Branch makes the budget in a realistic manner then its work is finished. For the realistic preparation of budget for the main heads of Accounts, Preparation Branch has to see the past record. It has to observe the historical revenue and expenses. It has also takes into account the inflation rate for the year. Assuming the inflation rate to be constant for the coming year, preparation Branch notices any development or expansion in the region, and then it -has to increase the budget for that main head of Account. If preparation notices recruitment of more employees for a particular region, then it has to increase the budget for Account of staff salaries and allowances. If expenses of staff like stationary, ink files etc. increase then

preparation branch has to increase the Account of staff salaries. If increase in inflation rate is expected in the just coming years but no development or expansion is expected then preparation branch will increase the budget for that main heads of Accounts. -But only takes into account the effect of inflation. Preparation Branch not only prepares the budget for the expenditure of different heads of Accounts but also makes an estimate of budget for the company for the next coming year. While preparing the budget branch revenue, preparation branch has some assets like installation fee and line rent from where revenue is fixed. Preparation branch has separate heads of accounts for telephone traffic receipts and telegraph traffic receipts, miscellaneous telephone & telegraph receipts and joint telephone & telegraph receipts. Having separate accounts of revenue, preparation branch doesn't feel difficulty of preparing budget for revenue of the next coming year. DISTRIBUTION BRANCH When preparation branch completes the process of preparing the budget then starts the work of distribution department. The Function of distribution branch is to allocate the budget to the particular head of account of each region. Distribution branch keeps a small portion of budget as reserve for contingent and unexpected events and allocates the entire remaining budget to the particular head of account; this grant is called AFG. Distribution branch, at the end of each month, analyses the monthly expenditure of different heads of accounts like conveyance allowance, out door treatment allowance, have constant or fixed expenditure each month, so their analysis is quite easy. At the beginning of year, expenditures are higher than ordinary expenditures in the remaining period. Some heads of accounts have low expenditure slightly increases and after six or seven months it begins to decrease. Distribution branch observes the monthly expenditure of each and every head of account and after six months if expenditure is more than expected then central audit verifies it that why it has been increased.

Some time, more expenditure is required in a region because of starting or development or unexpected inauguration of project. So distribution branch allows the allocation of more expenditure is necessary and is doesn’t exceed the need. At the end of each financial year, allotted budget and the actual expenditure are compared. If actual expenditure is less than allotment then there is saving to the company so no action is taken. If actual expenditure is slightly more than allotment, then it is unfavorable variance. If that increase in expenditure is fair, then it is accepted. If it is permanent, then increase is made in budget for the next coming year. If actual expenditure significantly exceeds the allotted budget then the case is given to the internal audit for the finding the reasons of that significant increase in expenditure without any notice. The effective control of distribution branch depends on judging the fairness of any unexpected event and estimation of the fair expenditure for allotment. CEILING BRANCH Ceiling branch issues funds for each head of account of each region. Hence, ceiling branch is responsible for issuing the allocated funds by the distribution branch. Ceiling branch issues funds to each region on monthly basis to certain head of accounts. As head of account, for the whole year so ceiling branch divides the allotment by 12 to make rough estimate for the monthly expenditure. Ceiling is issued to the DDO of each region who is only responsible for drawing and disbursement of funds for each head of account for his region. Ceiling branch analyzes the expenditure of each head of account at the end of each month. Ceiling branch make sure that expenditure for a particular head doesn't increase beyond the ceiling issued (on monthly basis) with out any sound reason. Ceiling branch like

distribution branch also keeps some reserves for unexpected or unhappy events while issuing the Ceiling to each region. Ceiling for staff salaries and allowances are fixed, while ceiling for staff expenses, maintenance and petty work, office contingencies (utilities, communication, printing etc.) vary because these charges are not fixed. Ceiling branch has the daily record of collection of revenue from customers and daily issuing of ceiling to different regions. By continuously keeping and examining the record, the ceiling branch can see that how much revenue has been collected and how much funds (ceiling) have been issued to different regions All the revenue, which is collected by different banks from customers of Pakistan Telecommunication Company Limited, finally comes into National Bank of Pakistan, who acts on behalf of the company and in which company has its account. Ceiling branch daily examines the collection of revenue in National Bank of Pakistan and issue ceiling to different regions from that revenue. Company has also maintained retained earning and reserves for contingencies. But some times, revenue collected from customer is not sufficient to issue ceiling. Funds which to be issued are more than funds available, so ceiling branch has to borrow running finance to issue funds to different regions. Interest is paid on running finance and when enough revenue comes into account, amount of running finance is automatically deducted by National Bank of Pakistan. Main heads that are used in issuing funds are: • • • • • Establishment Working. Maintenance. General provident fund. Miscellaneous. (Education grant)

RECOMMENDATIONS
• The efforts should be made that PTCL be an independent organization in its internal matters; ministry of communication may give only guidelines. • The officer may be trained to adopt the company culture, soft spoken, good relations with customers and target oriented. • There should be full-fledged marketing department, which should be under chairman PTCL. • Top management divisional engineers in the field to be business and target oriented through short courses of marketing and finance. • Finance and Marketing officers and Engineers may be sending to international seminars/workshops to get knowledge of new technique and procedures.

•

There should be effective human resource department in order to get right people on the right job.

•

Promotion should be made on the basis of performance rather than seniority.

CONCLUSION
PTCL land line phone and wireless system is the best option among all the companies and reason being that it’s a well established company, there are more chances to learn as compare to a newly emerged company. While among the preceding companies, some has government touch in its management style and some companies were at sluggish phase. Management is well defined at PTCL. Rules are specified and implemented on all the employees regardless of their designation. There is homogeny in all regulation aspects. There are a time to time motivational rewards, increments and acknowledgment.

REFRENCES
Abbasi, F. A. (2008). Data Billing and Payments: Orientation report. Unpublished manuscript, Pakistan Telecommunication Company Limited, Islamabad, International Revenue Department. Ali, S. F. (2005). Training report. Unpublished manuscript, Pakistan Telecommunication Company Limited, Islamabad, Accounts Section. Anonymous (2000). Billing and Receivables-International business. Annexure- Accounting entries, p.iii. Anonymous (2000). Billing and Receivables-International business. Follow up actions for overdue balances, c.6.2, p.19. Anonymous (2000). Billing and Receivables-International business. Bad debts and writeoffs, c.7, p.22. Jabeen, A. (2008). Orientation report. Unpublished manuscript, Pakistan Telecommunication Company Limited, Islamabad, Advisory Section. Sumaira khan (2007) Financial Specialist, Capital Budgeting Pakistan Telecommunication Company Limited, Islamabad. M.Fahim Tariq (1986) Accounts Officer, Ceiling/Treasury Pakistan Telecommunication Company Limited, Islamabad. Pakistan Telecommunication Company Limited, (2008). Third Quarter Report. Islamabad, p.13. Analysis of financial statements by Fundamentals of financial management by Van Horne

ONLINE REFERENCES
• • • • http://www.pta.gov.pk/ http://www.hoovers.com/ptcl http://www.ptcl.com.pk http://www.ptcl.net

APPENDIX-A

BOARD OF DIRCTORS
Chairman PTCL Board Mr. Hifz-Ur-Rehman Secretary IT&T, Ministry of Information Technology Government of Pakistan, Islamabad Chairman & Chief Executive Officer Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani Etisalat International Pakistan L.L.C Executive Vice President Contracts & Administration Etisalat, UAE.

Secretary, Ministry of Finance Mr. Ahmad Waqar Secretary, Ministry of Finance Government of Pakistan, Islamabad Member (Telecom), Ministry of Information Technology Mr. Noor-ud-Din Baqai Government of Pakistan, Islamabad. Ambassador, Embassy of Pakistan Mr. Ahsanullah Khan Abu Dhabi, UAE General Manager Dr. Ahmed Al Jarwan Real Estate Etisalat, UAE

Chief Human Resource Officer Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh Etisalat, UAE

Executive Vice President Engineering Mr. Fadhil Mohamed Erhama Al Ansari Etisalat

UAE General Manager, Northern Emirates Mr. Abdulaziz Hamad Omran Taryam Etisalat, UAE Company Secretary Ms. Farah Qamar PTCL Headquarters, Islamabad



doc_890847347.pdf