Page |1

INTERNSHIP REPORT ON PTCL

PTCL (PAKISTAN TELECOMMUNICATION

COMPANY LIMITED)

Presented to:
DEPARTMENT OF PUBLIC ADMINISTRATION
UNIVERSITY OF SINDH, JAMSHORO

Presented By:
JAWED LUND S/O ALI AKBAR
B.S(PA)-IV, EVENING
FINANCE
Roll # 2K12/PAE/23
Email: jawedahmed371@yahoo.com

REPORT

CONTENTS OF

REPORT
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PART-ONE
CHAPTER # 01
------------------------------------------------------------------------------- 05
1.1
ACKNOWLEDGEMENT------------------------------------------------------- 05
1.2. EXECUTIVE
SUMMARY------------------------------------------------------ 05
1.3. INTRODUCTION OF
PTCL--------------------------------------------------- O6
1.4.
HISTORY------------------------------------------------------------------------- 07
PART- TWO
INTERNSHIP REPORT
CHAPTER # 02
------------------------------------------------------------------------------- 08
2.1.
PARKING------------------------------------------------------------------------ 08
2.1.1. Holding Invoice Documents
---------------------------------------------- 09

2.2. Parking Invoice Documents

------------------------------------------------ 09
2.2.1. Use document parking
----------------------------------------------------- 09
2.3. Saving Invoice Documents as Complete
--------------------------------- 10

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2.3.1. Use Save as complete

------------------------------------------------------- 10
2.4. Demand Draft of Park
-------------------------------------------------------- 10
CHAPTER # 03
--------------------------------------------------------------------------------- 13
3.1. POSTING
-------------------------------------------------------------------------- 14
3.2. Account type ------------------------------------------------------------------- 15
3.3. Posting keys in the standard system
------------------------------------- 16

3.4. PAYMENT
------------------------------------------------------------------ 16
CHAPTER # 04
------------------------------------------------------------------------- 16
4.1. Adjustment of Journal Voucher
------------------------------------- 16
4.2. Punching of Document
------------------------------------------------ 17
4.3. Note Sheet
----------------------------------------------------------------- 17
4.4. Reporting
----------------------------------------------------------------- 18
4.5. In Revenue
----------------------------------------------------------------------- 18
4.6. Bill Installment
----------------------------------------------------------------- 19
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4.7. Bill Correction

------------------------------------------------------------------ 19
PART-THREE
CHAPTER # 05
-------------------------------------------------------------------------------- 20
5.1. Organizational Structure of PTCL
---------------------------------------- 20
5.2. Structure of PTCL
-------------------------------------------------------------- 21

5.3. PTCL Head Office Chart

----------------------------------------------- 21
5.4. Chart of Regional Office
----------------------------------------------------- 23

5.5. Department Organization Chart

----------------------------- 24
5.6. Managerial Structure of Department
----------------------- 25
5.7. Privatation of PTCL
---------------------------------------------- 25
CHAPTER # 6
--------------------------------------------------------------------------- 26
6.1. Finance
-------------------------------------------------------------------- 26
6.2. Accounting
----------------------------------------------------------------------- 26
6.3. Revenue
--------------------------------------------------------------------------- 26
4

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6.4. Accounting System of PTCL

-------------------------------------------------- 27
6.4.1. Revenue from Billing System
--------------------------------------------- 27
6.4.2. Revenue from Others
------------------------------------------------------- 28
CHAPTER # 7
---------------------------------------------------------------------------------- 28
7.1. SWOT Analysis of PTCL
------------------------------------------------------------- 28
7.2. Strength
-------------------------------------------------------------------------- 28 7.3.
Weakness ------------------------------------------------------------------------ 29
7.4. Opportunity
--------------------------------------------------------------------- 30
7.5. Threat
----------------------------------------------------------------------------- 30
CHAPTER # 8
---------------------------------------------------------------------------------- 31
8.1. Objectives
------------------------------------------------------------------------ 31
8.2. The Following Long-term Objectives
------------------------------------- 31
8.3. Vision
------------------------------------------------------------------------------ 32
8.4. Mission
---------------------------------------------------------------------------- 33
8.5. Recommendation
---------------------------------------------------------------33
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PART 01
CHAPTER # 01
INTRODUCTION
1.1 ACKNOWLEDGEMENT
This report of getting experience complete with the helps of some
respectable employess of PTCL of finance department and also revenue
department. In finance department the names of employees as under, Mr.
MASOOD SHAHANI, Mr. MIR MUHAMMAD BALOCH, Mr. NOUMAN, Mr.
WAHEED, Mr. AMEEN. And in revenue, Mr. Imtiaz Ahmed Ansari, Mr. M.
Hassan, Mr. Shoaib, Mr. Walee.
This report is a necessary of Public Administration, B.S(PA) and is the
Department of faculty of social science of my learning experience with
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PTCL. The internship of finance and revenue in PTCL, purpose is that to

increase knowledge and to get experience. After theoretically then
practical of theory in PTCL and gain to experience, my internship on
finance and learn about software of finance which used in PTCL regional
branch of Hyderabad Fatima janah road Hyderabad. I have been learned
as a practical work in institute, this internship specially for working as
financial practical work in the institute.

1.2. EXECUTIVE SUMMARY

With employee strength of 30,000 and 5.7 million customers,
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 Pakistans economic growth. PTCL has laid an
Optical Fiber Access Network in the major metropolitan centers of
Pakistan and local services have started to be modernized and
upgraded from copper to an optical network. This report is being
started with the brief and complete introduction of organization, its
historical background, its services and its products offerings. In this
report organization structure is discussed as per the requirement of
internship. What is the hierarchy in the organization as well as working
of various departments are concisely discussed.
The most important thing the BUSINESS STRAGTEGIES is
discussed in such a way that its not difficult to understand it. Internal
and External analysis has the vital importance, which in this report is
also done. More over the Financial Analysis is also done which is
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depicting the financial position of the org in the market place. Whereas
SWOT analysis is done which clearly saws what are the strengths,
weaknesses, opportunities and threats in the organization. Finally
some suggestions and recommendations are given to org in this
report. Limitation although very few but cant be negligible are
discussed. Thus this report completely depicts the true picture of PTCL
in a meaningful way.

1.3.

Introduction

Pakistan Telecommunication Company Limited (PTCL) is the leading

telecommunication authority in Pakistan. The corporation provides telephonic
and Internet services nationwide and is the backbone for the country's
telecommunication infrastructure despite the arrival of a dozen other
telecommunication corporations, including Telenor Corps and China Mobile Ltd.
The corporation manages and operates around 2000 telephone exchanges
across the country, providing the largest fixed-line network. Data and backbone
services such as GSM, CDMA, broadband Internet.

Page |9

The details of the share holding in the company is till now is as given
from 100% shares of the company 62% is owned by the government
while 26% was sold to Etisalat Telecommunications under the
privatization program run by Shaukat Aziz in 2006 the remaining 12%
are sold to General Public in the same year.

1.4 HISTORY
Founded in 14 August 1947, In 1947 the beginning there was no
concept of PTCL in Pakistan rather a department Posts and Telegraph
Department exists which is used for communication. In 1962 a
department was established Pakistan Telephone and Telegraph
department replacing the first one in those days the service was provided by
the organization as a state owned entity later on in 1991 the government took
the decision to privatize the PTCL in 1994 govt. work on it and in 1996
shares are given to people holding vouchers. In 2005 government decides to
fully privatize the PTCL and sold the shares to Etisalat which led to country
wide protests and strikes by the PTCL workers.

The Government in 1991, announced its plans to privatize PTCL, and

in 1994 issued six million vouchers exchangeable into 600 million shares
of the would-be PTCL in two separate placements. Each had a par value
of Rs. 10 per share. These vouchers were converted into PTCL shares in
mid-1996. PTCL launched its mobile and data services subsidiaries in
2001 by the name of Ufone and PakNet respectively. None of the brands
made it to the top slots in the respective competitions. Lately, however,
Ufone had increased its market share in the cellular sector. The PakNet
brand has effectively dissolved over the period of time. Recent DSL
services launched by PTCL.

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PART TWO

Internship report

CHAPTER # 02
PARKING
The internship report is conduct on the learning period of which I
have done in PTCL, it means that investment of time in PTCL and working
days of PTCL. I have been to get the experience from this opportunity of
internship in Hyderabad. The internship report based on which I have
done my work in PTCL as a internee which contain of two departments,
one is that Finance

and

Revenue.

1.
2.1. PARKING
Parking is the
process of
recording the
documents in the
software of PTCL.
maintain record
data for the
auditing purpose
for company
record.

SAP
To
the
and

2.1.1. Holding Invoice Documents:

If you are interrupted while entering or parking an invoice, you can
hold the data you have already entered, such as the list field selections,
header data, and item data. The system creates an invoice document but
does not make any checks, updates, or postings. When you continue
processing the held document later, the system proposes the data
already entered.

2.2. Parking Invoice Documents

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You create an invoice document in document parking. Choose the

disk icon Save parked document to do this. Before saving the data, the
system performs consistency checks .Subsequently, you can still change,
delete, or post parked documents, or save them as complete.

2.2.1. Use document parking if:

1. Information required for posting the invoice document is missing
in the invoice document and you do not want to have to enter again the
data already entered
2. The balance is not zero
3. The following updates are to take place:
1. Log of document changes
2. Informative purchase order history
3. Data for advance tax returns
4. Index for checking for duplicate invoices
5. Vendor open items
6. Vendor open items for parked documents

2.3. Saving Invoice Documents as Complete

You create an invoice document in document parking. Choose Save
as complete to do this. Before saving the data, the system performs
consistency checks. In the event of errors, the data is not saved, but is
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presented for correction instead. Subsequently, you can still change,

delete, or post Documents complete for posting.

2.3.1. Use Save as complete if:

1. No more changes are to be made to the invoice document
2. The balance is zero
3. The invoice document is to be parked for posting but not posted
yet cheers.
LPS (late payment sub-charge), it is the part of money where PTCL
to pay at the time of late, after due date to pay the amount to vender or
bills or other.
2.4. DEMAND DRAFT OF PARKING
PTCL issue Demand Draft (DD) from NBP on debit account (loan) of
all branches of division. Bank reconciliation report. PTCL issue DD from
National Bank Pakistan (NBP) on debt account (loan) of all branches of
division of Hyderabad. Means PTCL to give document of as a letter to
provide the DD then PTCL to make check for the making payment on
draft then forward to the vender or the bills.
Folio, it is kept by the PTCL for the purpose of auditing. It is leaf for
office copy on the tap is check, record of document number, invoice
reference date, value, with tax, net.
Parking on system application product (SAP) by the semens
company, here many models but PTCL used the fico model. Fico model
especially used for the finance of PTCL.

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There are three users of PTCL first one is that the parking which is
do for the giving the entry and recording the documents, second one is
posting which for the verifying the documents for the payment and third
is the payment which means the to pay the amount to the vender or bills,
and theirs idea totally different from each other.

Internship report
Regional General Manager (RGM), and widrow means the PTCL to
pay the amount for funding the benevolent fund. Benevolent means a
employee who has been died and pension to pay his wife. F-53 is the
code of parking and posting in the SAP software after open ID or user
account in SAP software. Then options as under in SAP general leadger
(GL) and code as a example is 4830821, post out going payments,
process open items and payment document code is 26. If document
make be done in the code of 25, then is known as document complete in
parking document. For credit the code is 50, and for revers is 48 in
PTCL Hyderabad.
/nfbz5 this code use for print for payment document and /n_ for
back to the menu and company code 1100, /fbvo for find payment,
/fahn for know about check, /faglb03 for tell the balance of vender
and /fbl1n for now punch paid payment to the vender.
M.O maintenance order and note sheet where employee want to
advance amount from the company (PTCL), for the purpose of employee
to do work of his job. Advance payment means temporary payment to the
employees, and MO done in SAP software as known as adjusting and the
code for adjusting is /Fv50 and tax code is yo which always in debit
side and cost center code (40870) always in credit side and cost centers
are different because every employee working on different cost centers.
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Profit center (1129) is stand same for the regional company and
employees have different codes which is known as person code (example
10025282), B.M.C Business manager center and L&W for stand as line
and wire.
Jv for temporary advance and for the funding to benevolent fund,
vender to be clear from Lahore head office and named as senior
manager HR coordinator, hurship means heritage/ hierarchy of the
family which confined the venders and benevolent documents from the
court and then company head means company authority to clear for the
funding. But in past there was a authority runs as named DIRECTOR
COMMERCIAL which was working all over in PTCL and his work was
same as clearing the funds of venders.
Reference number increase in the blank of reference and parking
number as example p-5326, then vender code (example 3505842). Click
on tax to select the division then switching to senior engineer (S.E) then
go on payment and to fill house bank box and house bank code is
nb040.

CHAPTER # 03
POSTING

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Recording of the transaction for the G/L account, for making it

finalize. Before posting the document of G/L accounts to complete the
two steps which are as allocation and parking. Two-character numerical
key that controls the entry of line items. The posting key determines.
Regarding to the document posting to means to clearance the
document and allow the fund. After clearing the document, the assistant
manager of finance, again do parking process and then to give assigned
for the billing and to forward the document for payment. Assistant
manager (A.M) send the email with the documents of funds to post and
then A.M to re-parking the documents in PTCL. Example Doc# 25
46735, then doc posted and green color displayed in screen, if red color
show that means error in posting doc. Urgent code is Z000, and for more
than 30 days or one month the code is Z030.
The company needs to pay its invoices in order to function properly.
It also needs to record vendor invoices and payments in the accounting
books and registers. SAP is a help here. Accounts Payable is an important
part of SAP Finance. Lets look at the process of posting the invoice into
SAP Finance.

Would they be able to park and post the same transaction are is
restricted to only posting of transactions which they have not
parked. Go to t-code FBV0 and select your document number. Click
the List button if you need to search for your doc.
Here the option for checking list of documents and select the
posting document and open the document and do posting by individual
documents or to select some documents then post in group. And before
the post document to fulfil the option such like as company code,
document code or number, then year.
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Then press

enter to

open the Edit

screen.

Here, you can

make

additions/adjustments to the parked document.

3.1. Account type

Debit/credit posting
Layout of entry screens
When you enter a posting, enter a posting key for each item. This
key determines how the item is posted. Posting keys are defined at
client level and therefore apply to all company codes. The posting key
determines:

The data you can enter in the line item

How data you post is processed
How the system updates the data you enter
Posting keys are differentiated by customer, vendor and G/L accounts.
Apart from the General Ledger Accounting (FI-GL) and Accounts
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Receivable and Payable (FI-AR/AP) components, there are also posting

keys for asset
and
material
accounts.

SAP delivers
posting keys with
standard system.
following table
of the posting
standard system.

predefined
the
The
lists some
keys in the

3.2. Posting
the standard system

keys in

Posting Key

Description

40

G/L account debit posting

50

G/L account credit posting

01

Customer invoice

11

Customer credit memo

21

Vendor credit memo

25

Vendor payment

31

Vendor invoice

The posting key specifies which account types you can post to. A
posting key can only be entered for an account type which is permitted
for that document type.
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As well as the predefined posting keys in the standard system, you

can also define your own keys in Customizing. To do this, proceed as
follows in Customizing.

3.3. PAYMENT
It is the last process of SAP software which makes the payment and
makes check for save the for late penalty bills. After checking document
of posted files by the financial manager of PTCL then he to allow the
payment to the venders, and other documents.
After the Posting, All bills go for the payment either in manually or
automatic. I learnt and practiced on payment in SAP which is too easy for
the payment.

CHAPTER # 04

ADJUSTMENT
4.1. ADJUSTMENT OF JOURNAL VOUCHER
Adjustment is the method of adjusting of payments which
company paid in advance to the contractor and to the employees.
After payment to pay in advance after period complete of advance
then need to adjust the balance.
Fv50 is the code of adjusting in SAP of PTCL, line and wire (LW).
Open the SAP to fill the code and then fill process of adjusting, start
from the basic data then vender code, invoice date posting date, tax
amount, text and then company code (1100), then go farword to
payment give the code of house bank and in last on with-holding,
after completation of adjusting then click on simulate button for the
saving adjustment document.

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Invoice date means which date document have to increase in

the company process. For automatic payment transaction parameter
code is /nf110, in single document code is 26 and for menual
document is 44. In adjusting profit center code only in credit side, debit
in tax code, cost center only in debit, check register code is /nfchn.

4.2. PUNCHING OF A DOCUMENT

Punching means saving documents in excess software, if no
network working in company then financial managers and in
finance department manager do their work on excess software
for temporary period when SAP start working then increase
documents in SAP from the excess.
Punching the bills of PTCL through different regions and to pay
the amount of bill to the different organization, but in case of electric
bills which connection get from the electric company thats bills to
pay to the electric company for example main branch of Hyderabad
to pay the bills to HESCO.
FPA, Fuel Payment Adjustment, for recording the bills to open
the excess and set recent date of bill and then click on add new bill
for setting the bill and recording. Amount posted code is 26,
document clearing code is 11, vender start code bf-350, m-03
clearing, document adjustment code is 34, 48 is revenue cod.
4.3. NOTE SHEET
It is the process of making note sheet of document in the way of
data, and note sheet link from the crystal software. It makes the
purposes of auditing when company give assignment to the auditor
and employees who working internally the organization after
complete all the process then they make note sheets.
In wapda the profit center is 1808, if income tax on document
then we have to three rows, vg code of GST, pay term code is z000
and this code is only in wapda bills, y0 is the code of yes working on
the pay tax if no tax then write vg code. If you have target of
amount then tick on the tree off/on, and then click on the calculate
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text for automatically amount calculate. G/L code change only in

PTCL office of regions bills otherwise same code on all the bills.
CSR Customer Service Representative means line-man, 1,000
instalment of bikes which line man use and bikes provide by the
company to line man and also 30 liters of petrol for a month. Bills of
petrol received by the HR department of PTCL and to clear and
check in completely then forward to the finance department.
EPI Employee Personal Identify number or code, Assistant
Manager Admin checks the bills of CSR of bikes petrol which may to
send by the pump stations or employees and verify by the Admin of
region then forward to the SM for allocating budget. This budget will
be required for Admin of HR, who has need and who has a authority
for requesting for budget. For this purpose to fill the options of SAP
software as like here serial number, vehicle number (HBE-1409),
month (jan-april 2015), monthly limit liters (30), liters, fuel amount,
liberal amount, total invoice, payees or vender and in last remarks.

4.4. REPORTING
After completing all the processes then need to prepare the
report and /nfag1103 is the code reporting in SAP software for open
the reporting process then have to write this code. G/L account code
is 2441015, company code is 1100. Line staff, open item this only for
posting, then click on the clear items for make clearance then all
items and click on executive button. /nfb02 this for entry view for
check print code is /fvz5.

4.5. In Revenue
In revenue department, PTCL has 4 OSS (one stop shop). The
revenue system has been going on them. It depends on computerized
system. Every OSS has one RO (revenue officer) who monitor the all
activity which is done in OSS. It has many functions like wise:
The bill correction
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o Installment
o Bills correction
o Retention
o Off line
Customer Relationship Management
o Duplicate bills
o Customer details
o Check the EVO
o EVO activation
o Complain
Public Dealing

In OSS, the public dealing is the most common factor which increase
the confidence of internee and he learns that how deals with different
customer and how we can manage them.

4.6. BILL INSTALMENT

It is the process of making portion of amount which in the shape of
bills of customers. The time of instalment of bill at that time when a
customer have need to pay the bill in the portion because amount large,
customer want a instalment of bill.
In a branch there is a officer with the position of REVENUE OFFICER,
who is the controller or the head of a branch, he has authority to make
two or three instalment of a bill and instalment only makes on the
amount of erriess bills not included the current bill. After instalment then
to plus with the current bill.
4.7 CORRECTION OF BILL
The process of correcting the bills, at the time when bills in heavy
amount and to cut the erries of last bill. Other thing is that wrong bill
issue or difference in the digits of bill amount then correction process
start.

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PART-THREE
CHAPTER # 05
ORGANIZATIONAL STRUCTURE OF PTCL

5.1. STRUCTURE OF PTCL

An Organizational Structure clarify the roles of personnel of an
Organization and to determine who has to do what task, which is responsible
for what, objectives to be achieved, who is to report to whom and to remove
the obstacles for performance caused by confusion and uncertainty of job
assignment as well as to make easy decision- making and communication
networks reflecting and supporting organization objectives.
PTCL

is divided into five major zones i-e north zone Rawalpindi and

Islamabad, central zone Punjab , south zone Sindh and Baluchistan , western
zone KPK and head quarter Islamabad , the zones are further divided into
regions , PTCL has been divided into almost thirty-two Regions (Nine
Development and twenty-three Maintenance Region ).
All the company heads offices are in Islamabad head quarters .The head
of Pakistan Telecommunication Company Limited is called President. Then
there are SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance), SEVP
(Operations), SEVP (Technical), and SEVP (Human Resource Management),
SEVP (Marketing & Business Development). Then there is a chain of Executive
Vice-presidents (EVPs) like EVP (Finance Central), EVP (Marketing), EVP (HR
Central), EVP (Accounts), EVP (Operation), EVP (Information Technology,
Training & Research), and EVP (Revenue). All these are appointed at Pakistan
Telecommunication Company, Headquarters at G-8/4, Islamabad. Apart from
these EVP, there are also EVP (Operation), EVP (HR) etc. who are heading the
other regions of PTCL in

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5.2. PTCL Head Office Organizational Chart

major cities country wide. Then there are Chief Engineers and General
Managers at H/Qs who report to their relevant EVP. Then there are Senior
Managers, Deputy Directors, Assistant Directors, Account Officers,
Assistant Account Officers, Financial Analysts, Marketing Managers,
Computer Programmers, and IT Specialists etc.
5.3. CHART OF REGIONAL OFFICE
There are Regional Heads (General Managers) to head PTCL
Regions, There are numbers of Senior Managers of different departments
like HR, consumer, R&C and

Finance works under the supervision of

RGM. There are three Senior Business Managers and five senior
23

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managers are working under RGM Hyderabad though their general

managers are different.

BMQASIMABAD

As a human resource internee we will discuss HR department

particularly, SM HRBP is the one who is looking After all the management
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affairs of Hyderabad region SM HRBP reports to General Manager

human resource Karachi, manager HR & his staff are responsible to take
care of Personnel affairs at Regional Level and reports to SM-HRBP, there
are around 3 Assistant managers that works under manager supervision
i-e AM HRBP , AM- ADMIN, AM-PAYROLL. Then the non-gazette staff
there are Engineering Supervisors Operations /Switching /Power plant
/Optical Fiber system/M.W Media, Account Assistants, Stenographers,
Assistants, Key Punch Operators, Telecom Technicians, Upper Division
Clerks, Lower Division Clerks, Line Men, Wire Men, Drivers, Exchange
Cleaners, Naib Qasids and Peons etc. All the staff is recruited by the HR
Department headed by SEVP HR. The HR experts are responsible for
hiring & to further streamline its recruitment process.
5.4. Department Organizational Structure
G.M (A/N(D&M))
Internship Department

S.M(MM&BB)

Manager

S.E Cord

S.M(HR)

S.M(D&Sp Project)

Engineer

S.E (as above)

A.D.W

S.M(Switch)

S.M(Ops)

S.M(Fin)

S.E(switch)
Business Manager

A.D.W
Engineer

A.M

Engineer

S.A.O

D.A.O

Ass: B.M
Assistant Clerks
CPE installers

E.S develop

R.O

E.S (Switch)
E.S (Bus)

U.D.C, L.D.C, Stenos etc.

T.O, Tech:, Wire man etc

Note: so in the above structure I have scaled from SM, till CPE installers. I did my internship
in DSL department so I am mentioned
theman,
names
of only
concerned
designations and the
Line
Tech:
Cable
etc.
Tech:, Cable, Line man etc.
department structure is highlighted in the chart above.
25

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Senior Manager(SM)

Esa Khan (DIK)

Manager (MM&BB)

Yaseen Khan1
Assistant Manager(AM)
Tariq Ayaz
Fahad Burhan, Irfan khan, Dawar

Installers

5.5.

CPE

Managerial Structure of the Department

President

SEVP

EVP

Internship Department

S.M(finance)

G.M (Functionality & Administration)

S.M(HR)

S.M(Switch)

S.M (D & Sp Project)

Manager

S.M(reven)

A.M

In

CPE installers

Hyderabad there is no GM so in the above structure I have

scaled from SM, till CPE installers and the SM report to two GMs i.e.
Functional and Administrative. I did my internship in finance
department so I am mentioned the names and designations o
employees of that department only, and the department structure is
highlighted in the chart above.
Senior Manager(SM)

Abdul Rauf Outho

Manager (finance)
Masood Shahani
Assistant Manager(AM)
Mir Muhammad Baloch
1
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CPE Installers

Nauman, Ameen, Waheed

5.6. PRIVATATION OF PTCL

PTCL was sold to Etisalat at a loss of $394 million with the

share price reduced from the original bid of $1.96 per share to
$1.66, according to a report. The original bid offered in June 2005
by Etisalat priced PTCL at $ 2.599 billion while the revised bid
approved by the cabinet in March2006 valued the company at
$2.205 billion. However, the government denied giving any
concessions to Etisalat. Officials add the price of 26 percent PTCL
shares remained the same i.e.
$2.6 billion, and then any lowering of bid price in the revised agreement
approved by the cabinet in March. The official documents state that the
accumulated bidding price in the revised bid came down to $2.205 billion
against the original Etisalat bid of $2.599 billion, said a report in the Gulf
Today.
The PTCL privatization agreement with Etisalat allegedly inflicted a
further loss of billions of rupees to the national exchequer besides
unprecedented concessions offered in the long term, indirect conflict with
Article 30 of the Public Procurement Rules 2004, it said. By far, the PTCL
has been the highest profit earning state-owned company with realestate assets worth billions of rupees across the country including
commercial plazas, residential colonies and exchanges. According to the
government documents, the Share Purchase Agreement (SPA) of the
PTCL with Etisalat lapsed in September 2005 after the non-payment of
the dues by the winner bidders. After further negotiations with the
Etisalat management, the government agreed to offer additional
concessions and modifications to the transaction structure.

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CHAPTER # 06
FINANCE

&

ACCOUNTING SYSTEM OF PTCL

The PTCL FINANCE & ACCOUNTING system is actually divided into three wings.
1- FINANCE, 2- ACCOUNTS, 3- REVENUE FINANCE
6.1. FINANCE
The SEVP (FINANCE) is concerned with the makeup of the all type of financial
decisions especially in the context of acquisition, financing and management of all assets
with some goal in mind. The EVP (Finance) with the General Manager (Finance) extend
their expertise in the decision making process.

6.2. ACCOUNTS
Here the SEVP (Finance) is once again concerned by heading the EVP
(ACCOUNTS) and General Manager (Accounts) to deal with all Accounts
Decision. In PTCL the Finance and Accounting are scope related but the
difference between finance and Accounting is the method of Funds Recognition
and the decision making. In the Accounting the Director Accounts in the PTCL
Regions assist the higher management.

6.3. REVENUE

Here the SEVP (Finance) is once again concerned by heading the EVP (Revenue)
and General Manager (Revenue) to deal with all Revenue matters. One Director Revenue
within the Region
asist to implement and control the inflow of Revenue and Reconcile it with the PTCL
Headquarters Islamabad. The PTCL is actually the Revenue Generation organization.
PTCL Collect the Revenue from the following modes.1) Revenue from System Billing of
Land Line Numbers. a) Through Line Rent of Land Line Numbers. b) Through National
wide dialing from LLNs (Land Line Numbers)c) International dialing from LLNs d)
Providing Value Added services to customers. Like UAN (Universal Access Numbers),
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PABX (Private Auto Branch Exchanges),VPN( Virtual Private Network) Bandwidth of

ISPS (Internet service providers)e) PTCL has its three subsidiaries PAKNET (leading
ISP in the country),UFONE (unique cellular phone company in Pakistan), TF (Telecom
Foundation) the leading foundation for the welfare of employees of Telecom Sector.

6.4. ACCOUNTING SYTEM OF PTCL

In PTCL the rules contained in the special volume of the PTCL under which the
SEVP (FINANCE) is responsible for creating the procedure of Accounting matters.
CAPITAL RECEIPTS SIDE

6.4.1. REVENUE FROM BILLING SYSTEM

a. Revenue from Usual customer.
b. Revenue from DXX System.
c. Revenue from DSL System.

d. Revenue from PABX/PBX System

e. Revenue from Card Phone Operators.
f. Revenue from IPOs Internet service providers
g. Revenue from Mobile Phone Operators.
h. Co-location charges from various companies

6.4.2. REVENUE FROM OTHER

a. Revenue from Overseas calls (Incoming)
b. Revenue from Premium PRS (0900) calls
c. Income from Dismantle Exchanges
d. Revenue from MDF used by other companies

CHAPTER # 07
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SWOT ANALYSIS
7.1. SWOT ANALYSIS OF PTCL

Here I am giving SWOT analysis of PTCL. I tried to use my keen

observation in order to find the strengths, weaknesses, opportunities

and threats. As it is very difficult for an internee to discuss with the
employees of any organization about its weaknesses, moreover they
are also not so much open in telling their strengths and
opportunities. Where there is a company in operation it has to work
in two kinds of environment i.e. The external environment and The
internal environment of the company.
For a company to avail maximum and avoid maximum, it has to
know what it has to avail and what it has to avoid. The external
environment has scanned by the management for any arising
opportunities or any critical threats. The resources of a company
constitute its strengths and weaknesses.

7.2. STRENGTH
PTCL have largest infrastructure through out the country or we can
say that PTCL own the basic infrastructure of telecom in country. PTCL is
the cheapest broadband provider through the world. As the past serving
and current Significant Market Player (SMP), PTCL, no doubt, has got the
largest operational network and infrastructure within ICT (Information &
Communication Technologies) section. PTCL don't lack in numbers and
potential, if we talk about human resources or in other word PTCL have
good HR. Data center is another strength of PTCL. PTCL financial and
strategic position become more stronger when Etisalat has joined them
as investment arm as compare to other competing firms.
PTCL is enjoying monopoly in fixed line telephone or landline.
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PTCL (Ufone) is market challenger in GSM segment. Overall they have the
one of the largest consumer power on average in the whole Pakistan
telecom or cellular companies.
PTCL having over 2 million lines, PTCL is the largest WLL provider and
1134 base stations cover 720 cities still increasing the capacity. PTCL
market share more than 94% share in fixed line or land line segment.

7.3. WEAKNESS
PTCL customer service is still not good and this is one of their main
weaknesses and due to this there is very less number of brand loyal
customer. The monopolistic culture of PTCL won't let then to improve
their service. PTCL have over employment and low productivity as well.
PTCL HR department is not up to set standards on the bases of appraisal
system of their employees. PTCL waste huge amount of resources. Their
staff won't get any benefit for their higher qualification and since 12 year
their promotions are stopped.
Action of resources e.g they have complaint management system but still
customer complaints are not rectified on time.
PTCL corporate culture is similar to the government offices.
PTCL is not properly marketing their new services and product.

7.4 .OPPORTUNITY
PTCL have huge opportunity to increase their profit ability by improving
customer services.
Can improve the broadband market share by tracing their technical staff
and replacing copper wire with Optical fibers.
PTCL can save a lot of resources if they bring so betterment in their
planning process.
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Raise their market share by improving their marketing tactic.

PTCL must grab bright opportunities like WI-MAX.
PTCL must have to come up with video call.
Must have to grab the opportunity of 3G technology.

7.5. THREATS
PTCL is facing huge threat of migration from landline to mobile phone.
Involvement of rivals in social activities can badly effect PTCL Image and
market share.
Brilliant customer service of rivals is a huge threat for PTCL.
Increasing rate of cyber-crime is also threat for PTCL high speed internet
devices like EVO, EVO nitro.
Continuously improving quality of Naya tell is also threat for PTCL.

CHAPTER # 08
PTCL CORE OBJECTIVES
8.1. OBJECTIVES
The primary objective of Pakistan Telecommunication Company
Limited is to provide telecommunication services to the people in the
country or in short to satisfy the telecommunication needs of its
customers. Responding to the rapid economic and technological
growth, the company is determined to meet the challenge of
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expanding needs of telephone and data communication such as public

data network, integrated services digital network and Internet services.
The major focus of attention is to improve and expand the services,
minimize the faults and provide communication facilities to rural areas.
It is also one of the major objectives of management that the company
should not improve its performance but also encourage the private
sector to enter the Tele business.
The company has entered the domain of free market economy,
which necessitates the liberal management policies and private sector.
The following basic policy steps have been taken to meet the
objectives laid in PTCL Act to expand and operate telecommunication
services in the country. The main objective of any company is to earn
the profit and minimize expenses by winning goodwill in the market.

8.2. The following are the long-term objectives of the

organization:
Provision of Telecom services all over the country.
Plan, establish and maintain telecommunication
Acquire, promote and manage research and development,
transfer of technology and software development including
manufacturing of telecommunication equipment and plant
Enhance efficiency, improve quality and expand the system to
meet customer satisfaction and provide service on demand.
Create congenial climate for binding of human skill and horizon of
employees through training and education.
Convert its cash basis single entry accounting system to accrual
basis double entry system meeting the commercial international
accounting standards.
To introduce computerized directory assistance and complaint
services reform billing and a revenue collection system.
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Strengthen relation with foreign international administration,

entities, services providers, international and regional telecom
organizations for better international communication and
technical cooperation in telecommunication business.
Expand customer awareness of all value-added services of PTCL.
To improve the efficiency of Customer Service Centers by
deputing qualified persons who are well aware of public relation
techniques.

8.3. vision
To be the leading ICT service provider in the region by achieving
customers' satisfaction and maximizing shareholders' value.
The future is unfolding around us. In times to come, we will be the
link that allows global communication. We are striving towards
mobilizing the world for the future. By becoming partners in
innovation, we are ready to shape a future that offers telecom
services that bring us closer.

8.4.

Mission

To achieve our vision by having:

An organizational environment that fosters professionalism,

motivation and quality

An environment that is cost effective and quality conscious
Services that are based on the most optimum technology
"Quality" and "Time" conscious customer service
Sustained growth in earnings and profitability
Core Values

8.5. RECOMMENDATION

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According to my internship time period that I have been some

good features of company and good persons are working under
the following some advises as:

The company should have to care about their

employees.
The need to make trust with the employees and
give them opportunities of growth within the
organization or externally.
Company have to be makes motivational
environment in the organization for the receiving a
better work and employees and customers who get
interest on the company.
To be clean buildings and to give advance facilities
to the employees during work in office building, like
as air condition system and new electronic
machines.
It is the most important that customer care is the
first priority of company that focus on customer
care, and to invent new machines in customer care
centers.
I think also company are responsible that to achieve
goals and for this then company have to be fulfil
needs and wants of employees, because without
employees company nothing.

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