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Internship Report On PTCL Pakistan Telec
Internship Report On PTCL Pakistan Telec
ON
PTCL (PAKISTAN TELECOMMUNICATION COMPANY LIMITED)
Presented by:
Submitted to:
Mr. Luqman wadan
Lecturer at Department of Management Sciences
Abdul Wali Khan University Mardan
Buner Campus
Strong and efficient telecom sector is the basic requirements of any country. One of these
companies is PTCL. No one can deny the role of PTCL to survive in the current scenario of the
world. Globalization, industrialization and technological advancement are very necessary to
speed up in fast lane. For Flexible economy there must be a Flexible Telecom organization
working in flexible and independent way.
The report aims at appraising the working of PTCL, its functions and operation and also
attempts to assess its performance. Certain recommendations are presented for the potential
areas of improvement.
(Keran raj)
BBA (Hons)
Finance
Internship report
On
Session 2013-2017
Campus Coordinator
Internship Supervisor
External Supervisor
Department Chairman
(Keran Raj)
BBA (Hons) finance
(Keran raj)
BBA (Hons) finance
This report is the essential part of my BBA (HONS) program of studies as per for the academic
requirements. The sole intention is to disseminate with the realistic manipulation of the
organization. This report has been written to know how big organizations like PTCL manage
their Finance and Management operations. How they structure there day to day operations, there
transactions, and what type of strategies they apply for their organization to achieve their goals.
About the project, in the first phase of the report there is the general introduction, history and
management about the company and then different terms have been explained, then the mission,
values, different services and different strategies of the organization have been explained.
It is discussed about the sap programme and its use in PTCL, and the organizational hierarchy is
explained.
In the next part, my internship work in PTCL finance department is explained; financial analysis
and SWOT analysis of the firm have been done by the help of which we identified that what are
the strong areas of the company and where it lacks so that it can improve.
The source of my information for the preparation of this report also includes the written notes,
literatures and verbal discussion with staff members and my fellows.
The information contained in this report is based on my personal observations, practicle working
and interviews with the staff during my internship period.
(Keran Raj)
BBA (Hons) Finance
1.5 Methodology 11
2.1 Introduction 12
4.6 IT department 29
7.1 Strengths 43
7.2 Weaknesis 43
7.4 threats 44
8.1 recommendation 45
8.2 Conclusion 45
Chapter 10 References 48
Although there was some improvement, but with greater demands on the T&T for telephones and
improvements in service, it was felt that the telecommunication sector was not meeting the needs
of the economy. The World Bank also held this view. As a result and after reviews, the
Government decided to convert the T&T into an autonomous corporation that was created as
PTC by an Ordinance on 15 December 1990. The establishment of the corporation was an
immediate step in Government’s strategy,which could not be supported and financed by
Government itself. For this purpose, Government obtained the services of consortium led by
Bear Steams (USA) for study and recommendation, which result in the promulgation of the
Telecommunication Ordinance of July 1995 separating the policy, regulations and operations in
the sector. While policy was reserved for the government, the regulation of the sector was
entrusted to the Pakistan Telecommunication Authority (PTA).
A Frequency Allocation Board (FAB) was created for the management of the radio frequency
spectrum and the government’s telecommunication services National Telecommunication
Corporation (NTC) was created. The PTC was converted to the Pakistan Telecommunication
Company Limited (PTCL) on December 31, 1995.
In October 1996, the National Assembly enacted the Telecommunication Reorganization Act
replacing the Ordinances. Although not perfect, the Telecommunication Act 1996 provides a
reasonable framework for the sector structure and organization. With the support of the World
Bank Project the PTA and FAB are expected, over time, to achieve the objectives for the sector
3
as envisaged in the Act. It was only after the conversion of T&T Department into a Corporation
4
In 2004 the capacity had exceeded 4.5 million lines, an increase of over 3.5 million since 1991.
For long distance telephone services, capacity of circuits was increased in 1950s by
reconstruction of open-wire lines and installation of large number of 3 and 12 channel carrier
systems.
Carrier Channel mileage increased from 8500 in 1948 to 206,873 in 1962. To further increase
circuit capacity, coaxial cable systems were installed in 1960s and early 1970s. Radio Relay
Systems supplemented these in 1970s and 1980s on both main and subsidiary routes. These
systems enabled introduction of point-to-point Subscriber Trunk Dialing (STD) in 1962 and
Nation-Wide Dialing (NWD) in 1976. By 1981, telephone subscribers of 50 cities had been
provided with NWD facility. In 1990 the NWD stations had increased to 168 and NWD channels
5
to 10,487. In 2009 the NWD stations had increased to 26,650.
Later on, GOP decided to sell 11.8% of its share, in the shape of vouchers, on stock market
through domestic and international offering. The sale of 26% stake to Strategic Investor
remained on the agenda. In August 1994 GOP issued 1,000,000 (one million) PTC vouchers
exchangeable into 100,000,000 (100 million) PTCL shares (with a nominal value of Rs.10 per
The vouchers were listed and traded on stock exchanges. The price of the vouchers in the first
and second issue was Rs.3, 000 and Rs.5, 500 respectively. GOP also issued Exchangeable Notes
worth US $.150 Million to international investors in February 1997 through Numura
International, UBS & Global Securities. These notes are exchangeable into fully paid “A”
ordinary shares of PTCL – about 3.3% of issued share capital. If the notes are converted into
shares, it will amount to total 15.06% of GOP equity divestiture. In August 1997 a deal of
Securitization of PTCL foreign receivables has been successfully done which fetched US$ 250
million to GOP and equivalent rupee to PTCL. The concept of securitization of PTCL future
receivables from major operators has given opportunity of cheapest possible loan to PTCL.
In 1995, Privatization Commission, GOP appointed a new financial advisor to implement the
strategic sale. Morgan Grenfell, UK, Coopers & Lybrand, Denton Hall, Muslim Commercial
Bank, Deutsche Bank AG, Abacus Consulting and Rizvi, Isa led the team, as members. This new
advisory team initiated work in September 1995 and a lot of steps were taken on their
recommendations.
M/s Goldman Sachs Financial Advisor for Privatization of PTCL started their work with due
diligence. The Government wanted to divest its 26% share with management control. 14 big
international Telecom showed Expression of Interest in PTCL. Among them, 5 reached to the
final stage of bidding, in which UAE’s Etisalat was declared successful. Etisalat got 26% stake in
2005 at US$1.95 per share generating revenue of US$1.59 billion. Etisalat also got the
management control and has yet to finalize its accrued
Apart from these, PTCL has an Optical Fiber Construction Region Lahore and Optic Fiber
System Islamabad, each headed by a General Manager to install, operate and look after
optic fiber systems/cables.
Vision
“To be the leading information and communication technology service provider in the region by
achieving customer satisfaction and maximizing shareholder value”
Mission
An organization environment that posters professionalism; motivation and quality
Quality and time conscious customer service
Sustained growth in earnings and profitability
Core value
Professional Integrity
Customer satisfaction
Team work
Company legality
Corporate information
Management staf
G.M (A/N(D&M))
Internshp
Depart
Ass: B.M
Assistant Clerks
R.O
CPE installers E.S develop E.S (Switch)
E.S (Bus)
U.D.C, L.D.C,
Stenos etc.
T.O, Tech:,
Wire man etc
Line man, Tech: Tech:, Cable,
Cable etc. Line man etc.
The head of the Company is called President, assisted by Senior Executive Vice President, who
control different directorates such as Planning, Operations, International Communications,
System Engineering, Customer Services, Administration and Technology Transfer & Research,
Each Directorate control different Regions under respective jurisdiction. While day to day
operational responsibility is decentralized to 21 different Regions, including 14 geographical
regions. The Head of Region is called General Manager (GM). The GM of the region enjoys
powers mentioned in the T & T manual Volume III. He is responsible for the efficient operation
of telecommunications and finances, revenues and welfare of the staff. The GM ensures that
adequate number of efficient personnel is employed for the satisfactory operation, control and
expansion of telecommunication services.
The GM control different Divisions. The Division is an executive unit of the region and is
headed by Senior Engineer (S.E).
The S.E. controls different Sub-Divisions, headed by Engineer Switch. The SE ensures efficient
administration of his division in terms of technical and welfare matters of his staff. He ensures
The Engineer Switch is the In charge of sub-division to carry out the order of Division. The sub-
division has different units or sections headed by Engineering Supervisors (ES). The ES acts like
senior technician and practically trace faults and rectify defects. They also supervise the work of
Technicians, Assistants, Line staff and other officials, the different diagrams show the complete
management hierarchy within the PTCL.
Network planning, finance, procurement, technology selection and service development are
purely concentrated within the PTCL Headquarters at Islamabad. Within this framework, there is
little scope for initiative, accountability and responsibility by both management and staff.
The product and services that PTCL is providing to its customers are as follows.
Services:
telecom operators
sky link
leased circuits (IPLS / DPLC)
international IP services
PTCL metro fiber network
Interconnection services
Wavelength services
White label services
Calling cards & LDI
Payphones
Network capacity services
Broadband
Abdul Wali Khan UNIVERSITY Mardan (Buner Campus) Page
26
Chapter 4
DEPARTMENTS OF ORGANISATION
Every organization is divided into definite departments. Each department performs different
kind of jobs and requires staff with specialized skills to handle particular job. The PTCL Head
Quarters is comprised of several departments. The division is made on the basis of function they
perform. Hence it can be concluded that PTCL has adopted the policy of functional
departmentalization. The main departments of PTCL are mentioned below.
1) Human Resource Management Department
2) Finance Department
3) Commercial Department
4) Operational Department
5) Technical Department
6) IT Department
It is a vast organization and being considered as one of the biggest company in
Pakistan.
It has more than 56,000 employees and a huge network of organizational management
has been spread throughout the country.
PTCL is engaging a substantial number of experts and specialists of standing caliber in
different spheres of profession.
Job analysis and revision of jobs description was undertaken for improving the
performance standards.
The Finance Wing deals with all the matters related to revenue and accounts of the
company
the Accounts Wing is responsible for proper book–keeping of the financial transactions,
commercial audit & preparation of periodic accounts of the company.
The revenue wing deals with the collection of bills and customer services.
It plays an important role in determining the long-term objectives.
The details regarding this section will be covered in finance section with reference to my
project.
The new paradigm would require cost-based services with thin-profit margins but higher
volumes. Inherently, PTCL services were not cost-based. There were in-built subsidies and long
distance calls, both domestic and international, were highly priced. The Company, therefore,
evolved strategies of gradual price rationalization
4.6. IT DEPARTMENT
This department is established to introduce new and advance technology in PTCL. Due to
IT department working system is to converted in a computerized system.
HIERARCHY
Executive Vice President (Accounts)
Executive Vice President (Finance)
Executive Vice President (Revenue)
General Manager (Store)
General Manager (Accounts)
General Manager (Finance)
General Manager (Revenue)
Finance system of the organization
Accounting system of the organization
Mobilization of funds
Generation of funds
Allocation of funds
Finance Wing
Budgeting is the most effective instrument to exercise quality control over the financial
resources of an organization and their better utilization. A budget is a comprehensive financial
plan setting forth the expected route for achieving the financial & operational goals of an
organization. The companies engaged in large-scale business essentially have a budget
department to carry out budgeting for the coming financial year. Various functions performed by
Budget Dept. of PTCL are:
Allocation of funds to different head of accounts.
Disbursement of funds or physical transfer of funds to different heads of accounts.
Receive and analyze budget reports.
Recommended actions designed to improve efficiency where necessary.
Tariff Wing
Tariff Wing is further divided into international tariff and domestic tariff. International tariff
means international business with the whole world i.e. international communication with
different countries. However, there is no direct connectivity with all the countries. There are only
40 countries with which PTCL is directly connected through satellite while the remaining
international connection of traffic to other countries through different carriers. There are 52
carriers for this purpose. There are 220 destinations in the whole world to which there is
international communication but the active relationship of PTCL with 52 carriers. The tariff
department decides about TAR & routing plan for international traffic. It also issues Transit
Charges Agreement for those countries to which there in no direct connectivity.
……………………. Bills receiving
…………………… . Scrutiny
……………………. Parking in SAP
.…………………… Posting of vouchers
……………………. Payment process in SAP
……………………. Printing of Cheaques
……………………. Signing of cheaques
……………………. Dispatch of ceaques
5.4.2
SCRUTINY OF BILLS
checking of availability of relevant documents
checking rates of goods /services acquired
checking of availability of approval from concerned authority
signing of person scrutinized the bill if found correct in alls
attachment of objection letter in case there is any objection
checking and signing of vouchers by the AM finance scrutiny
checking and signing of voucher by the manager finance
demanding funds from AM finance budget if not available in the respective cost
center
sending the files for posting to SM finance 2
Voucher send for binding
Share capital and reserves : this part mainly consist of the amounts for the share
capital and amount of reserves for the company. Reserves made from the equity and
profit for the next year.
Long term and differed liabilities :the liabilities which are not payble within the one
financial period are the long term liabilities. Deffered payments are the payments , which
are due but postponed to another financial period.
Current laiilities : all those liabilities that are payble within current accounting period
are called current liabilities.
The asset side mainly consist of .
Fixed capital assets : it is the first item of the assets side of the alance sheet.
It includes all such asset that are to e used for more than one accounting period.the
benefit of such assets are enjoyed for more than one year.
Current assets : these are such assets that are consumed during the business process and
its benefit can be taken for one year.
4,260,456 4,017,321
Share of profit / (loss) from associate 8,781 (2,343)
.93 1.6
Interpretation:
Current ratio shows the firm’s ability to cover its current liabilities with its current assets.
Genrally the current ratio when comes 2 is acceptable .by the internal two years (2016-2015)
comparision of PTCL ,I interpret that the current ratio of 2016 is weaker than that of 2015 .
This weaker ratio is because of investing in capital expenditures.in 2016 their investment in
capital expenditures is high therefore the ratio gets weaker.
Interpretation:
The quick ratio of the company is as same as its current ratio.
I interpret that ,the ability of the company to meet its current liabilities with most liquid
assets of the year 2016 is weaker than that of the 2015.
This trend of decreasing is not favorable for short term creditors of the company.
.70 .66
Interpretation:
this ratio indicates the percentage of financing assets by debt. For the said years it is
interpreted that,the debt utilization in assets for both years are relatively stable.
interpretation
in 2015 the debt to equity ratio gave the outcome of 2.02 while in 2016 it becomes 2.4.
the debt utilization in 2016 is more than the debt utilization in 2015.
.26 .25
Interpretation :
This ratio shows that how efficient the opratios are handeled .Company has a strong gross frofit
margin at 2016.
Net profit margin = net profit after tax / net sales
Interpretation :
This ratio indicates the firms profitibilty after deducting all expences .from the interpretation of
both years net profit margin ratio ,it is concluded that at both years they got same profitability .
Interpretation:
This ratio shows the firm frofatibilty on assets side. From the ratio it is interpreted that there is
a poor return on investment for 2016.
.01 .01
Interpretation :
.39 .40
Interpretation :
It is interpretad that ,the generation from assets to sale is at relative position for both years .
WEAKNESSES:
No innovation.
Gaps in knowledge of employees in some areas.
Work burdens on employees.
Issues with employees promotions
Unsecure job of contractual employee
THREATS:
Software hacking.
Miss management.
System destroys.
Virus to the system which can damage all the data.
Government legislation
Innovative competitor
I recommend that PTCL have to provides cross departmental training to employees
job security of contractual employees
solve issue of employee promotion
training and development of employees
bring innovation in product and service
CONCLUSION:
after the completion of my internship with PTCL for about 8 weeks for the fulfillment of
the requirement of my BBA degree program I here by conclude that ,the internship in
PTCL was a good experience During this period I have gained a lot of knowledge and
practical experience.
I have practically realized the importance of individual /practical work.
The very important thing which I realized is, like any other basic sphere of modern socio-
Industrial activities, Telecommunication is a main and important field for the development
of any country.
The staff of organization is highly qualified and their behavior is friendly .
also the working environment of organization is very good.
So I recommend all students who do their internship in future, should do the
training program with PTCL.
TH
1. C JAMES , M JHON., 2009.Fundamentals of financial management 13 EDITION :FT
PRENTICE HALL.
2. www.scribd.com/document/138862958/A-Report-on-Pakistan-Telecommunication-
Limited-Comany
3. TARIQULLAH ,2010 internship report on PTCL . Submitted to : UNIVERSITY OF SCIENCE
AND TECHNOLOGY BANNU.
4. https://ptcl.com.pk/Financials .
5. https://ptcl.com.pk/Home/FinancialFiles?ItemId=51&linkId=115
6. www.scribed .com /document/138862958/ a-report-on-Pakistan-telecommunication-
limited-company.
7. Annual report of PTCL, 2015.
8. Annual report of PTCL, 2016.