PIA Summer Internship 2013 Table of Cont

PIA Summer Internship 2013
Table of Contents
Executive summary ....................................................................................................................................... 3
Profile of the Industry:- ................................................................................................................................. 4
Introduction .................................................................................................................................................. 5
Vision:- .................................................................................................................................................... 6
Mission:- ................................................................................................................................................... 6
Orientation in PIA.......................................................................................................................................... 7
History of PIA:- .............................................................................................................................................. 9
Birth of a Nation, Birth of an airline:- ....................................................................................................... 9
A new national airline for Pakistan (PIAC 10th 1955 January 1955) ........................................................ 9
Achievements:- ........................................................................................................................................... 10
Safety & Quality Certifications .................................................................................................................... 11
IOSA:- .................................................................................................................................................... 11
EASA ........................................................................................................................................................ 12
Quality Management System (ISO 9001:2008) Certifications ................................................................ 12
Industrial Swot analysis............................................................................................................................... 13
Strength .................................................................................................................................................. 13
Weakness ................................................................................................................................................ 13
Opportunities .......................................................................................................................................... 13
Threats .................................................................................................................................................... 13
SWOT ANALYSIS:- .................................................................................................................................. 14
Strengths: .................................................................................................................................................... 14
Weaknesses: ................................................................................................................................................ 15
Opportunities: ............................................................................................................................................. 15
Threats: ....................................................................................................................................................... 15
Number of planes and their destination..................................................................................................... 16
Overview of the PIA town office Lahore finance department .................................................................... 19
Nature of working of Finance department ................................................................................................. 20
Page 1
Working in Finance department ................................................................................................................. 20

Revenue Department Structure.................................................................................................................. 20
AWB ............................................................................................................................................................ 23
MCO (Miscellaneous Charges Order)...................................................................................................... 24
Audit Coupon .......................................................................................................................................... 24
Automation & Reconciliation:- ................................................................................................................... 25
Payments................................................................................................................................................. 26
Process .................................................................................................................................................... 26
UBL accounts:- ............................................................................................................................................ 28
DISBURSEMENT:- ........................................................................................................................................ 30
Payroll ......................................................................................................................................................... 31
Refund ......................................................................................................................................................... 32
Credit control:- ............................................................................................................................................ 32
For example ............................................................................................................................................ 33
Agency ......................................................................................................................................................... 33
Project ......................................................................................................................................................... 35
Vertical & Horizontal analysis ................................................................................................................. 35
Equity and Liability sides’ analysis .......................................................................................................... 36
Vertical Analysis of last 4 year income statement ...................................................................................... 37
Horizontal analysis ...................................................................................................................................... 38
Equity and Liabilities ............................................................................................................................... 39
Income Statement .................................................................................................................................. 40
Conclusion ................................................................................................................................................... 41
Limitations and problems:- ............................................................................ Error! Bookmark not defined.
.................................................................................................................................................................... 42
Suggestions & Recommendation: ............................................................................................................... 43
References .................................................................................................................................................. 46
Page 2
Executive summary
P akistan international is the largest airline of the country and the need of the nation
as it carries the flag of the nation in the whole world. In past PIA was the first
choice not only of the domestic passengers but also for the European passengers.
But in last decade it has face the worst crises.
In my six weeks of internship program I learnt many things regarding practical work andthe
official environment of PIAC. PIA expended its network with great pace in the early years and it
rendering services to more than 80 destinations. The main head of the whole organization is in
Karachi.
In my six week I worked in every unit of Finance department of the PIA town office Lahore and
try my best to learn the practical work of each unit. PIA is a very big organization and the work
is very much segregated and complex in the department. The use of Sabre and Cossap 3 make
the work much easier for the organization. In my six weeks I also learn some applications of
Cossap 3 like the collection, payment, refund and stock keeping in the system.
In the end I have also done the project assigned from the supervisor. I did vertical and horizontal
analysis of the PIA’s financial statements of the last 4 years and also give some comments
regarding my analysis.
I also observed many problems in the organization and in the end gave some recommendation to
improve the performance of the organization.
Page 3
Profile of the Industry:-

Airline industry is one of the most revenue generated
industry of Pakistan. It has a few competitors only four well established industries are
operational in Pakistan. Among these four PIAC is the largest organization in airline industry of
the Pakistan. Total airlines in the industry
PIAC
Air Blue
Shaheen Air
Indus Air
Emirates
PIAC has the most influencing infrastructure in this industry
But it is pity that except PIAC every company is generating
More than 140% profit with a small scale plan and resources. From a rough analysis if a plane
has capacity of 100 passengers and 90 passengers travel through those planes than
approximately fair of 35 passengers will is the net profit of that flight.
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Introduction
Air Line Industry holds a great importance in the economy of a country. It is essential to
have air communication for maintaining and improving relations with other countries and
promoting the domestic industry by providing safe and timely export facility to them. Keeping in
view all these means, it was necessary to develop quick and speedy means of communication.
Today Pakistan maintains a sizeable international route network, in addition to its services closer
to home, with a modern and expanding fleet.
 Governments of Pakistan owned more than 90% shares and remaining shares have been
floated to Karachi stock exchange (KSC). Its primary bases are
Jinnah International Airport, Karachi,
AllamaIqbal International Airport, Lahore
Benazir Bhutto International Airport, Islamabad
The airline also has secondary bases, including
Peshawar International Airport,
Faisalabad International Airport,
Quetta International Airport and
Multan International Airport,
Through these primary bases PIA connects the metropolitan cities with the main bases, the
Middle East and the Far East. PIA is more than just an airline. PIA is not just an airline it has
multiple Business unit list below
CARGO
SPEEDEX
FLIGHT Kitchen
PIA training center
Planet aria
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Vision:-
PIA's vision is to be a world class airline exceeding customer expectations through
dedicated employees, committed to excellence.
Mission:-
 Employee teams will contribute towards making PIA a global airline of choice:
 Offering quality customer services and innovative products
 Participating in global alliances
 Using state-of-the-art technologies
 Ensuring cost-effective measures in procurement and operations
Page 6
Orientation in PIA:-
The brief introduction and some important facts about the organization were given in a
small orientation by MR. Saleem-Ul-Huq the Deputy General Manager HR. The brief
introduction had been done under his supervision and some informative notes were provided by
senior HR. Officer Mr. Amir and Miss. Rabia. He told that round about 350 to 400 employees
working in PIA Town Office and rest of them nearly 400 working in PIA Airport.
There are 732 employees in Finance department and total number of employees in PIA is
16697. There are 10 departments in PIA named as.
Department No. of Employees
1. HRM And ADMIN staff 1566

2. FINANCE 732
3. CORPORATE PLANNING 2441
4. MARKETING 2055
5. FLIGHT OPERATIONS 841
6. ENGINEERING AND MAINTENANCE 4141
7. PROCURMENT AND LOGISTICS 352
8. PRECISOIN ENGINEERING COMPLEX 577
9. CORPORATE SAFETY 120
10. SECTT. 3872
Total 16697
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The hierarchy of PIA organization is divided in eleven categories shown as below
Chairman
Managing Director
Deputy MD
Directors
General Managers
DEPUTY GM
MANAGER
ASST. MANAGER
SR. OFFICER
OFFICERS
STAFF
Page 8
History of PIA:-
After a short period of independence, Government of the Pakistan decided in 1951 that it
needed a national flag carrier airline; the government of the Pakistan accordingly established
Pakistan International Airlines (PIA) to fulfill this need.
Birth of a Nation, Birth of an airline:-

In June 1946, when Pakistan were in prospect, Mr. Mohammad Ali Jinnahthe founder of
the coming nation and Mr. M.A Ispahani a leading industrialistfocus to establish a national
airline on priority basis. With his unique vision and foresight, Mr. Jinnah knew that with the
formation of the two wings of Pakistanthe need of an efficient transport was fulfilled by the
name of Orient Airways.
A new national airline for Pakistan (PIAC 10th 1955

January 1955)
Orient Airways was a privately held company with limited capital and resources. It could
not be expected to grow and expand its independent. It was then that the government of Pakistan
decided to form a state-owned airline and invited Orient Airways to merge with it. The result of
the merger was the birth of a new airline, by regulation, PIAC 10th 1955 January 1955.
It was the journey through which small air lines become the national airline for the Islamic
republic of Pakistan. It history include hundreds of worthy event some majors are as follows
In 1955 it also marked the inauguration of the fledgling airline's first scheduled
international service to the glittering, dazzling capital city, London, via Cairo and
Rome.
In 1956, orders for two Super Constellation and five Viscounts, delivered in 1959
were made. At this point, PIA is a small fleet of Convair, Viscounts, Super
Constellation and consists of DC-3 had.
In 1959 Air Commodore Khan was appointed by the Government of Pakistan only as
Managing Director of PIA. His visionary leadership put the PIA on top and within a
Page 9
short span of 6 years, won the stature and status of one of the world on the front line
support. In aviation, this period is often referred to as the "golden years” of the PIA.
In March 1960, PIA has started its first Boeing 707 jet service on the London-
Karachi-Dacca, Route, which is later to be very successful.
In 1961 the airline took on the mammoth task of initiating a cross-Atlantic service
from Karachi to New York. At that point, PIA orders for new aircraft more, the
Fokker F-27, Boeing and Sikorsky placed 720Bs included.
In 1964 PIA achieved another historic first seen as a major milestone in the eventful
history of the airline. On 29 April 1964, a Boeing 720B, PIA earned the distinction of
being the first airline from a non-communist country in the People's Republic of
China to fly.
In 1966 to link a system of feeder services, eight new points in West Pakistan was
introduced.
Achievements:-
There is an old saying that
“Every major achievement is almost always preceded by years of toil, hard work, failure, stress,
tests of character, determination, sleepless nights... All of which help form the network of roots
that can then support real accomplishments.”
The history of PIA is also full of such achievements. In the business a term “First moving
advantage” is usually voiced. PIA is the organization which had achieved such goals in past as
narrated below
PIA was the first airline from an Asian land country and the first airline from a Muslim
country to fly the Super Constellation.
The first Asian airline to operate a jet aircraft.
The first Asian airline to be granted maintenance approval by the US Federal Aviation
Administration (FAA) and the Air Registration Board, predecessor of the British Civil
Aviation Authority (CAA).
Page 10
The first non-communist airline to fly to the People's Republic of China, and to operate a
service between Asia and Europe via Moscow.
The first airline in Asia to induct the new technology Boeing 737-300 aircraft.
An IBM 1401, the first computer in Pakistan, was installed in PIA.
The first airline to introduce a second route to People's Republic of China over the
mighty Karakoram’s mountains.
The first airline in South Asia to introduce auto-ticketing facility.
The first airline in the world to fly to Tashkent, capital of the newly independent state of
Uzbekistan.
First airline in the world to start Air Safari with jet aircraft.
First Asian airline to start flights to Oslo, the beautiful capital city of Norway.
First airline in the world to induct Boeing 777-200LR, the world's longest range
commercial airliner.
First airline in South Asia to offer the facility of seat reservation through mobile phone.
All above mentioned successes are decades old but in near past PIA has also achieved some
distinguish as
Safety & Quality Certifications

IOSA:-
IATA Operational Safety Audit (IOSA) is basic requirement to retain airline’s IATA
membership. PIA is among the few developing country airlines which are compliant to IATA
Operational Safety Audit (IOSA) requirements and standards since 2005. The standards body for
IOSA is based in Montreal, Canada. A typical IOSA Certification Audit is based on a check list
comprising of +950 IATA Standards and Recommended Practices. Each IOSA certification audit
has two years validity and an airline must pass through a series of periodic recertification
audits by IATA approved Audit Organization to retain its IATA membership.
PIA is successfully maintaining its IOSA certification and the current IOSA Registry is valid
up to 24th June, 2015. IOSA registration demonstrates PIA’s renewed commitment to meeting
the highest international operational safety standards in critical areas which include:
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Organization & Management System

Flight Operations
Operational Control and Flight Dispatch
Aircraft Engineering & Maintenance
Cabin Operations
Ground Handling Operations
Cargo Operations
Security Management
EASA
EASA (European Aviation Safety Agency) is the centerpiece of European Union’s strategy for
aviation safety, promoting highest standards of safety and environmental protection within the
aviation industry. PIA holds this certificate since 2007.
Quality Management System (ISO 9001:2008) Certifications
At PIA, Customer Focus and Continual Improvement is embedded in the heart of each and every
employee, right from the top to the bottom most cadre. To achieve this aim of enhancing its
customer satisfaction, PIA has undertaken a number of pioneering initiatives throughout its
history. Through them it has achieved quality management system certificate.
PIA achieved the initial ISO certification in the year 2006, and since then it is successfully
maintaining all the certifications through regular independent management systems audits by
accredited audit organizations.
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Industrial Swot analysis

There are 32 sectors means 32 industries registered on Karachi stock exchange. Each sector has
its own opportunities and strengths regarding their own characteristics. Recent era is the period
of cement sector almost each company is exporting its product to the Asian as well as Middle
East countries. Following is the bird eye view of the Pakistan’s industries Swot analysis.
Strength
Airline industry has no close substitute
It is the most revenue generating industry of the economy
New air buses has reduced the cost up to 49% so the revenue has increased 40%
Weakness
It required a very high investment that is not possible for every economy.
In case of any damage or crash very high loss is to be faced of both human and capitals
Many times terrorist used to hijack the planes to put undue influence on their targeted
countries
Opportunities
There are very few competitors in this industry so still great space to be covered and
revenue to be generated
New technologies are reducing cost of travelling still a lot of work is required on the
cheapest design of the planes
With the passage of time the living standard of the people is increasing so tourism and
world travelling will increase
Threats
It is very difficult to get cleared from country to country defense ministry to start new
destinations
Page 13
It is very difficult for Asian countries to get clearance certificate from UK, USA and
Canada due to their narrow rules
SWOT ANALYSIS:-
SWOT analysis is the combination of two separate analyses.
One is internal analysis better known as value chain analysis plus external analysis better known
as PEST analysis. From internal analysis strengths and weakness of the company are identified
and from external analysis opportunities and threats of the company as well as of the industry are
calculated. Following is the list of companies in the airline industry of Pakistan
 Pakistan International Airline
 Air Blue
 Air Indus
 Shaheen Air
Strengths:
PIAC is a very big organization its biggest strength is its infrastructure which is spread in all over the
country. Due to this PIAC not only provide travelling facility to the customers but also provide
engineering facility and catering facility to the rest of the air companies.
 PIAC has discount schemes for students and other government official therefore all of
them prefer it.
 PIAC also provides direct networks flights to all domestic and many international
destinations.
 They arrange passengers treatment service specially for group travel to ensure:
 Separate checking counter for them
 Unique Luggage group tagging for identification
 Senior PIAC administrators welcome to the passenger at the airport
Page 14
Weaknesses:
 Miss Management of the resources at the top level
 Time arrival or take off of the flights
 Communication gap between administration and customers
 Poor facilities at airports
 Excess employees
Opportunities:
 Greatest opportunity is the increased population and trend of the people for travelling
through airlines
 Market is not saturated so they just need to increase the air craft to cover the market
Threats:
 Continues improvement of the competitors
 Introduction of Indus airline in the market
 Threats of terrorism is the biggest problem for any industry in pakistan
Page 15
Number of planes and their destination

In 2010 there were 42 operational planes in the
PIAC. In the mid of 2011 there were 32 planes that were taking part in the operations of the
PIAC. But currently PIAC has only 16 working planes. The detail of planes is as follows
Type Total Routes

3
long, medium and short haul (East / South / West Asia,
Airbus A310-300
Europe, domestic)
2
ATR 42-500 short haul (West Asia, domestic)
3
Boeing 737-300 short haul (South / West Asia, domestic)
1
Boeing 747-200 short and medium haul (Saudi Arabia, domestic)
2
Boeing 747-300 short and medium haul (Saudi Arabia, domestic)
Boeing 777- 2
long and medium haul (Europe, Saudi Arabia, domestic)
200ER
2
Boeing 777- short and ultra-long haul (North America, Saudi Arabia, UK,
200LR domestic)
Boeing 777- 1
long and medium haul (Saudi Arabia, UK, USA, domestic)
300ER
Total 16
Among these airplanes Air bus A310-300 and Boeing 777-200ER are the most revenue
generating planes of the organization. The competitors of PIAC especially Air Blue has only 4
planes and they are earning more revenue from Middle East due to their performance as
compared to PIAC. From last 5 years customers has preferred other than PIAC flights for Middle
East travelling due to the punctuality and quality of their performance.
Page 16
Two years before 41% of the total aircraft were approved by the whole Europe and USA states
for travelling now on 19% of the planes has these certificates. The following chart it will show
that no specific plane is available for complete need. Airbus 310 is the need of the economy but
PIAC coves only 19% of its need from this air craft as rest of them has been grounded for
maintained.
2013
Airbus A310-300 ATR 42-500 Boeing 737-300 Boeing 747-200
Boeing 747-300 Boeing 777-200ER Boeing 777-200LR Boeing 777-300ER
6% 19%
13%
13% 12%
12%
19%
6%
Following is the view of 2010
2010
Airbus A310-300 ATR 42-500 Boeing 737-300 Boeing 747-200
Boeing 747-300 Boeing 777-200ER Boeing 777-200LR Boeing 777-300ER
5%
7%
9% 29%
14%
14%
17%
5%
Page 17
In 2010 29% need was fulfilled through the Air bus. Such planes gives 200% times more revenue than
the others planes but each year number of these planes are reducing and in result cost of operation is
tremendously increased in the last decade.
Comparison of Cost of operation

years CoO
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
76% 81% 82% 83% 82% 85% 88% 88% 89% 91% 93%
1 2 3 4 5 6 7 8 9 10 11
This graph shows a tremendous increase in the cost of operations of the PIAC. One major reason
is the increase in the oil prices at international level but according to the critics and auditor a
major reason of this is mismanagement of the resources.
Page 18
Overview of the PIA town office Lahore finance department

The whole department is under the supervision of Finance manager Mr.Shahid Hassan
Zaiddi followed by four assistant finance managers. Below is the simple hierarchy
Finance Manager
Mr.Shahid Hassan Zaidi
Senior Asst.
Manager
Mr.Shahid Zamam
Asst. Manager Asst. Manager Asst. Manager

Ms. Nagina Saad Mr.Atif Butt Mr. Shaheen
The whole finance department is sub divided in 7 units listed below
1. Revenue
2. Agency/Cargo
3. Disbursement
4. Refund
5. Payroll
6. Automation
7. Credit control
Each unit is controlled by their in-charge and the in-charge is the responsible person for that
specific unit.
Page 19
Nature of working of Finance department

This finance department works exclusively on the instructions of the head office. As far
my experience this department performs the actions of only accounting as it record, re-arrange
and represent the transactions related to this station. On the 7th of each month the complete
reports of all their activities are transferred to head office both in soft and hard form.
Working in Finance department

The internship was started with a brief introduction from Mr. SaleemUlHaq. Then all the
Finance interne were taken to our supervisor Ms. NaginaSaadafter a brief introduction she sent
us to the Revenue department.
Revenue Department Structure

The whole revenue department is controlled by four employees. Their name and duty is shown
below
Mr. Azaz
In-Charge
Mr. Arshad
Mr. Sadiq
Sindhu
Mr. Raja Riaz Misc. Staff
R1 + Stock control R-2 R4 & SAR Cash Counter
R1 = revenue from tickets
R 2 = revenue from cargo
R 3 = cargo carriage shipment (international)
R 4 = miscellaneous revenue
Page 20
Mr.Azaz looks after all the revenue department as well as checks all the slips posting, credit card
entries and foreign currencies payments. There has been couple of discussions with Mr. Azaz
and he told the reasons of the segregation of Finance department in so many units, the purpose of
doing their work in a specific manner, all because to make the system more and more efficient to
control it in the best way. Pax sale is the major source of revenue for PIA. The graphical
presentation of revenue generating unit of PIA is shown as follow
Revenue from Each unit of PIA

100%
90%
80%
Percentage of Revenue
70%
60%
50%
40%
30%
20%
10%
0%
Pax Cargo Engineering Others
Series1 89% 5% 1% 5%
Besides this I also came to know that PIA is the market leader in the domestic Air line industry.
It holds more than 70% market share in the country.
Domestic Market Share
24% PIA
Others Carries
76%
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In the international market PIA is losing its value from last 5 years. In 2005 PIA held the 39%
market share in the world of air line industry but it losing its status since 2006.
The current position of PIA is clearly shown in below chart
International Market Share

80%
70%
Percentage of Share
60%
50%
40%
30%
20%
10%
0%
PIA Others Carries
Series1 33% 67%
Besides this overall revenue generation of PIA is also important. A graph below shows the
current position
Geographical segmentation of Revenue

Pakistan US/Canada Europe Middle East Asia
5%
20%
48%
19%
8%
Europe and US/Canada are the concerns areas as revenue from these sectors are decreasing. Uk
was the premier route for PIA but there been some issue in this route too. Besides all these facts
we also learn some about software used by the PIA.5% Asia is excluding Pakistan.
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Sabre software used by the ticketing staff of the PIA. It was often used for C20 a daily report of
complete sale of an agent. Mr. Sadiqsenior accountant teaches us to use sabre and to take prints
of some important information regarding SAR by using some specific commands.
In this section stock is also issued the most frequent issued document was airway bill (AWB)
AWB:-
Those are issued for shipments of cargo to their agents. Everything is mentioned, in this
document, like consignees name and address and account number. Agent number his detailed
and account number. This document is used by different agencies for their consignments.
Besides this cash receipts and excess baggage ticket (EBT) are also issued by this unit.In our
working we make the reports of both domestic and international ticket and after completing our
part the whole bulk was courier to the head office. During this work some uncommon procedure
were also experience like audit coupon and MCO.
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MCO (Miscellaneous Charges Order)

It is Miscellaneous Charges Order that is valid for one year from the date of issue and will be
void if mutilated. Another condition for the ticket to become void if the value exceeds from US
$750.
Audit Coupon
It is simply a ticket but the manual ticket. The number of audit coupons were very few in the
reports as it is not used abundantly.
These MCO’s and Auto Coupons are separated from the sales summary report. Their numbers
are assigned to them in a series given at the bottom of the MCO and left side at the bottom of
Auto coupon.
Page 24
Automation & Reconciliation:-

This unit is operated by Mr.Yasir Aslam and Ms. Nagina Saad.
Department Hierarchy
Ms. NaginaSaad
In-Charge
Mr. YasirAslam
Assistant
This unit is the most important unit of the whole department. The main server is controlled and
run in this unit. Everything related to Cossap is attached with this unit and if unit suffer any
problem regarding Cossap3 Automation looks after these issues. Even if any upgrading is
required in the system, head office send this in a floppy with some defined command, this unit
perform this in the main server and all linked system are automatically received this upgrading in
their respective unit.
In the beginning of the work in this unitMr. Yasir gave me the bird eye view of whole system till
“R8” and working of “R9” the reconciliation reports of all linked reports.
PIA town office Lahore has 2 main banking operations
I. Payments
II. Collections
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Payments:-
All payments are done through HBL WAPDA house branch. There are two accounts in
HBL one is collection account in this account money are transferred from Head office account
and other is IMPREST.
Process:-
Firstly money is transferred in HBL collection account head office. Then this money is
transferred in the IMPREST account and all payments are done from this account only. From the
flow it is easy to understand this process
Funds From
Payments of the Head Office

whole station
Transferring
Funds
funds
Manager
Supervision
HBL HBL
Imprest A/C Collection A/C
For reconciliation firstly I collected the monthly bank statement of HBL accounts then all the
payments cheques were entered in the COSSAP 3.In COSSAP 3 a specific portion is defined for
this operation.
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Following is the brief process of entering imprest account data in system
Once the system is started a login ID and password is entered
Login ID: R1B
Password: xxxxx
Once we are in the system a page with 16 options is displayed. This page is the main page of the
server and it contains the following
Main page of COSSAP 3
1. STATION MASTER DATA MODULE

2. DIRECT PAX SALE MODULE
3. DIRECT CGO SALE MODULE
4. DIRECT REFUNDS MODULE
5. DIRECT PAX AGENT SALES/REFUND MODULE
6. CARGO AGENT SALE/REFUND MODULE
7. CREDIT CONTROL MODULE
8. BANKING CONTROL MODULE
9. MISCE TRANSACTION MODULE
10. DISBURSEMENT MODULE
11. REVENUE/ACCOUNT, BLE DOCUMENT CONTROL MODULE
12. DAOS PRICING MODULE
13. MARKETING/MIS MODULE
14. STATION GENERAL LEDGER MODULE
15. SYSTEM ADMINISTRATION MODULE
16. STAFF BANK MODULE
For HBL account reconciliation option 10 is selected
Option 10 (DISBURSEMENT MODULE)
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Then it opened a new page with new 13 options then option 6 is selected
Option 6(BANKING MODULE OF IMPREST ACCOUNT)
It open in new page with 4 more option is displayed. On this page option 2 is selected
Option 2(PRESENTED/UNPRESENTED CHEQUE APPLICATION)
It further open in a new page with 4 more option now again option 2 is selected
Option 2(ENTER DATE OF PRESENTED CHEQUES)
It opens a page with multiple portions in this page the amount of cheque is entered with their
respected date. The whole data of complete month is entered in this way and in the end it is
reconciled. It is a very complex work and takes a complete week to fulfill it. Once the both cash
book and pass book are matched the final reports are mailed to head office.
UBL accounts:-
This account is basically the collection account of the station. All the revenue
earned is collected in the UBL account. Following is the flow of the funds in UBL account
UBL UBL
Collection of Collection of
Air port Airport Branch Gulburg Branch LBO & Agents
Compile
Supervision of Funds Manager
Revenue
Transfer to
Head Office
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From the flow it is clearly shown that each day collection is sent to head office on daily basis.
And each day a reasonable amount of fund is sent to station from head office to meet its daily
expenses.
The bank statements of whole months are taken on station as PIA has direct access to the
account. The prints of the statements are taken on the station and after this the same procedure as
describes above is repeated. In UBL account there is some more complication as it is matched in
system against the posted data of all the sections. For collection account again COSSAP is used.
Firstly main page (as shown above) is opened then option 8 is selected for collection account.
Option 8 = BANKING CONTROL MODULE
On selecting this it open a new page contains 9 more option then selecting option 3
Option 3 = BANK RECONCILIATION APPLICATION (COLLECTION A/C)
This option opens a page where amount is entered and it is matched with the deposited slip
amount, serial number and date. On many occasion the procedure of banking is different for
depositing a same sum of many to handle this a function key F3 is selected to go back and the
option 8 is selected
Option 8 = GAIN/LOSS ON CREDIT
On this option serial number is entered and then amount is matched with the deposit slips total
amount. By doing this for complete month a summary is prepared in the end after reconciliation
of the collection account.
All the printed reports are signed by sir Yasir, Ms. Nagina and the Finance Manager Sir Shahid
Hassan Zaiddi. Once summaries are completed then they are sent to the head office.
Page 29
DISBURSEMENT:-
This unit is responsible for the all the payments related the station other
than the refund and payroll. PIA is a very big organization therefore it has very great number of
dealers, vendors and contractors to whom the payment is obligatory. This unit comprise of four
peoples.
Their position and hierarchy is shown in below
Mr. Shaheen
In-charge
Mr. Attique Mr. Waqas Ms. Afifa
Functions performed in the unit:-
Four major kind of functions are done by this unit
1. Hotels bills
2. Hospitals bills
3. Chemist fee
4. Internal payments
Sir Shaheenis the assistant finance manager by designation and also the responsible person of the
whole unit. There is some segregation with respect to work in this unit.
Sir Shaheen handles the 35 vendors all their payment structure, date, check and balance is look
after by him.
Page 30
Sir Attique looks after the small firms and medical stores payments.
Sir Waqas also deals with the medical stores payment.
Mam Afifa handles the major contractor of PIA the PERCONTINENTAL HOTEL payments.
If amount of payment exceeds 500,000 then firstly its approval is taken from head office. Once
the approval is received cheque is issued to the concern party. A very important work that is also
performed in this unit that is budgeting. As I said this unit is independent from reconciliation
reports therefore this unit itself makes the budget and sends it to the head office.
The reports of this unit are called D-15.
Payroll:-
It is an independent unit who report to Finance Manager Sir Shahid Hassan Zaidi. The
in-charge of the unit is Sir QariRazzaq. This unit is basically comprise of three persons. Their
hierarchy is shown below
This unit performs the following operations
Pay’s Cheque
Pay’s Structure
Promotion Case
Provident funds & Loans
Page 31
This unit also works directly on the directions of the Head office. If any query arise, loan to
sanction, Promotional Pay problem a mail is send to Head office and on their approval the desire
action is taken.
In this unit there is no specific segregation of the work. The nature of their work demand a
mutual work environment every person knows how to perform his/her colleague duty in case of
need.
Refund(R6):-
This unit is responsible for the payment of those tickets which are not used by the
customers and them wishes to take the refund of their ticket. This unit is controlled by the two
persons including one In-charge. The structure of this unit is shown as follow
Mr Shahid Ali
In-Charge
Mr Javaid
Assistant
This unit is segregate in two worksone related to pax and other related to agency
Mr.Shahid Ali handles all the refunds issue of the agencies and Mr.Javaid handles all the pax for
their refund issue.This unit has its own printing machine and all the refund payment is done
through Cheque of imprest account (HBL account)
Credit control:-
This unit is run solely by Miss Gazala. This unit is basically handles all the
rebated transactions. Due to contracts with many National bodies PIA provide Rebate to the
employees of Military, Air force, Pak Navy, Police and many others. This special discount is
given to the employee from their respective organization not to the organization. Therefore PIA
has to collect the full expense some from the passenger and rest from his/her organization
Page 32
through an invoice. Miss Gazala organizes and issues that specific invoice to the organization.
Similarly on the case of agent default a credit invoice is issued for the settlement of PIA’s
accounts.
For example
A military person travel from Lahore to Karachi and the total expense of this
voyage is 10,000 rupees. After some standard documentation that person will get the ticket only
by paying 50% of the total expense. Then Miss Gazala will issue an invoice of the remaining
amount to the Military office and collect the remaining balance of that ticket.
Agency:-
This is the most revenue generating unit of the whole department. It deals with
International Air Transport Association (IATA) agents. This unit is run by 7 persons each
performing a specific duty in unit.
Agency Unit hierarchy
Ms. Saima
Ms. Huma
Mr. Usman
Mr. Nasir
Mr. Tahir Qaddri
MrAtif Butt &MsNaginaSaad overall look the whole work of the agency and prepare its reports
in the end.
Page 33
Following works are practiced in this unit
1. Receiving sales reports of agents

2. Prepare ledgers, checking and handling the issues related guarantees of agents
3. Providing refund to agents on demand
4. Book keeping of all the agencies data
The work of Agency is to deal with International Airline Transportation Association’s

agents(IATA Agents). There are total 235 agents. Mr. Nasir deals with 120 agents and rest of
them are handled by Ms. Huma. Each agent has to deposit 7 Million guaranteesin Bank as per
PIA policy. The process of billing settlement is operated through software of the organization
that creates the link between agents and PIA. All types of payments are done through Deutsche
Bank. This bank is linked with PIA and agents through BSP software. If agent is unable to pay the
required sum of amount the recovery is made through BSP software. The agency unit will issue
the Agent Debit memo in which all the information is written regarding agents. If in case of any
payment that is given to agent then Agent credit memo will be issued to the agent and the
amount from PIA account will be transferred to the agent’s account. Similarly Mr.Tahir deals
with the sale reports of the cargo of all the agents. Cossap3 is used to record and to do all
necessary calculations.
Page 34
Project
Vertical & Horizontal analysis

Vertical analysis of last 4 year Balance Sheet
2009 2010 2011 2012
ASSETS All values in Percentage

NON CURRENT ASSETS
Property , plant and equipment 85.00 80.25 81.20 79.88
Intangibles 1.41 1.57 1.65 1.68
Long-term Investments 0.05 0.08 0.05 0.05
Receivables from Centre Hotel 0.31 0.36 0.38 0.38
Long-term loans and advances 0.01 0.01 0.01 0.01
Long-term deposits and prepayments 2.52 5.17 5.15 3.13
CURRENT ASSETS
Stores and Spare parts 1.95 2.13 2.16 2.13
Trade debts 4.04 4.78 4.96 5.21
Short-term loans and advances 1.06 0.25 0.18 1.07
Trade deposits and prepayments 0.81 0.87 0.72 0.63
Other receivables 0.49 0.79 1.35 0.27
Short-term investments 0.07 0.47 0.33 0.05
Taxation-net 0.03 0.05 0.05 3.28
Cash and bank balances 2.27 3.25 1.80 14.87
Total Assets 100.00 100.00 100.00 100.00
Page 35
Equity and Liability sides’ analysis
Equity & Liabilities

Share capital 11.27384724 14.15033315 15.98272 14.961759
Reserves -34.1739298 -45.2004693 -59.6558 -71.8557
Non-controlling interest 0.368410909 0.653935565 0.6005555 1.0024009
Surplus on revaluation of fixed
20.44184273 11.56153175 12.692239 Nill
assets-net
NON CURRENT LIABILITIES
Long-term financing 19.5160377 16.16118766 24.787273 14.618962
Term finance and Sukuk
9.487862763 9.583969978 6.0675339 2.2843335
certificates
Liabilities against assets subject

29.69600967 29.51268334 26.296574 19.914003
to finance lease
Long-term deposits 0.177230595 0.210975168 0.247028 0.2780106
Deferred Liabilities 8.865758818 13.33031433 13.560624 9.5213108
CURRENT LIABILITIES
Trade and other Payables
14.73048331 17.48953577 25.732987 53.482138
including provisions
Accrued interest/mark-up/profit 0.893754472 1.699780425 2.6251414 3.98
Tax payable 0.423676614 0.900486197 0.5958518 28.755863

Short-term borrowings 11.61370592 12.44304521 14.328535 3.5269997
Current maturities of:-
Long-term financing 2.738908311 11.60024527 6.2850274 10.804767
Term finance &Sukuk Certificates 0.002479434 1.172127574 4.81159 7.8998427
Advance rent 0.001688146 Nill 0.0024391 0.0025115

Liabilities against assets subject
3.942233148 4.73031796 5.0370028 4.8219182
to finance lease
Total Equity & Liabilities 100 100 100 100
Page 36
Vertical Analysis of last 4 year income statement
2009 2010 2011 2012
All values in %
REVENUE – net 100 100 100 100
COST OF SERVICES
Aircraft fuel -38 -30 -49 -49
Others -46 -53 -46 -47
GROSS PROFIT 16 17 5 4
Distribution costs -5 -6 -5 -6
Administrative expenses -8 -7 -9 -10
Other provisions and adjustments -1 -1 -1 -1
Exchange loss – net -2 -7 -3 -5
Other operating income 2 1 0 3
LOSS FROM OPERATIONS 2 -3 -13 -16
Finance costs -8 -9 -8 -10
Share of loss from associated company 0 0 0 0
LOSS BEFORE TAXATION -6 -12 -21 -25
Taxation -11 7 1 -1
LOSS FOR THE YEAR -17 -5 -20 -26
Above 3 tables shows the vertical analysis of the PIAC financial statement of past 4 years (from
2009 to 2012). Vertical analysis is the key to examine the efficiency of a company in past years.
The fixed assets are continuously decreasing and long term deposits are increasing that clearly
shows some sort of mismanagement at the top level. In short term liability portion short term
debts and prepayment has increased about 100% from past years. Similarly in income statement
Page 37
cost of services, administration cost and finance cost has increased. It clearly depicts the
inefficiency in utilization of the available sources and mismanagement in planning.
Horizontal analysis
Of last 4 years balance sheet taking 2008 year as base year
ASSETS 2008 2009 2010 2011 2012

NON CURRENT ASSETS
Property , plant and equipment 100 111.22 92.62 92.65 97.37075
Intangibles 100 105.76 104 108.33 115.453
Long-term Investments 100 66.355 100.6 61.41 75.87
Receivables from Centre Hotel 100 106.71 108.73 114 123.56
Long-term loans and advances 100 157.9 184.91 201.95 164.065
Long-term deposits and prepayments 100 100.51 181.87 179.35 123.76
CURRENT ASSETS
Stores and Spare parts 100 106.73 102.9 103.49 105.89
Trade debts 100 134.64 140.5 144.35 175.98
Short-term loans and advances 100 158.58 33.106 23.88 125.87
Trade deposits and prepayments 100 99.079 94.022 77.31 70.87
Other receivables 100 61.814 88.566 149.26 300.76
Short-term investments 100 147.03 864.91 607.01 588.86
Taxation-net 100 21.94 25.802 29.1 35.98
Cash and bank balances 100 115.55 146.01 79.8 156.8
Total Assets 100 111.25 98.141 97.01 103.67
Page 38
Equity and Liabilities
2008 2009 2010 2011 2012

EQUITY AND LIABILITIES
Share capital 100 108.66 120.31 134.34 134.34
Reserves 100 103.5 120.75 157.55 168.87
Non-controlling interest 100 102.26 160.11 145.32 175.89
Surplus on revaluation of fixed assets-
100 148.14 73.91 80.21 97.98
net
NON CURRENT LIABILITIES
Long-term financing 100 117.06 85.509 129.65 70.7
Term finance and Sukuk certificates 100 157.61 140.44 87.89 32.67
Liabilities against assets subject to
100 94.212 82.591 72.74 60.87
finance lease
Long-term deposits 100 121.22 127.29 147.33 156.87
Advance rent 100 Nill Nill 138.58 Nill
Deferred Liabilities 100 112.52 149.24 150.03 165.09
CURRENT LIABILITIES
Trade and other Payables including
100 102.48 107.33 156.11 166.87
provisions
Accrued interest/mark-up/profit 100 125.08 209.84 320.37 360.65
Tax payable 100 3717.54 6969.6 4559 2001.1
Short-term borrowings 100 78.62 74.311 84.53 145.98
Current maturities of:-

Long-term financing 100 100.1182 374.03 200.33 378.98
Term finance &Sukuk Certificates 100
Advance rent 100 105.63 Nill 133.09 131.87
Liabilities against assets subject to
100 112 118.54 124 125
finance lease
Total Equity & Liabilities 100 111.25 98.14 97.01 103.67
Page 39
Income Statement
Years 2008 2009 2010 2011 2012
All values in percentage

Revenue-net 100 104.4691 118.7212 128.9809 124.765
Cost of Services
Aircraft Fuel 100 68.41608 97.49783 137.3161 136.45
Others 100 115.2522 114.4083 124.5383 125.87
Gross Profit 100 300.1755 319.8022 99.4397 89.34
Distribution costs 100 115.338 117.7871 128.6459 135.89
Administrative expenses 100 131.8022 169.7822 187.7901 192.22
Other provisions and

100 33.97171 39.99037 36.12158 38.33
adjustments-net
Exchange loss-net 100 27.82613 8.672504 17.4975 25.876

Other operating income 100 73.92432 302.0169 69.33887 360.87
Profit/(Loss) from Operations 100 10.01714 6.48426 53.68904 59.342
Finance costs 100 106.398 106.597 116.1782 121.34
Share of loss from associated

100 109.068 122.4181 198.9924 181.87
company
Loss before taxation 100 32.03436 19.21799 67.96487 98.23

Taxation 100 226.6093 -379.394 28.47634 22.2
Loss for the year 100 14.40695 55.33 71.54232 81.234
Horizontal analysis tells the trend of a company. From the above mention figures it is clear that
the trend of the PIA is downward from all these four years. Every year increase in the cost of
service is much more than the increase in the revenue. Besides these distribution cost,
administration cost, finance cost and other operating expenses are continuously increasing with
Page 40
an alarming pace. This analysis clearly depicts the poor trend of the company. Due to those
trends loss per year is increasing especially from last 2 years it has jumped to the horrible level.
Conclusion
Working in a corporate world was a great experience. Its provides opportunity to
understand the overall working of finance in the organization as well as gives chance to
understand the relation between bookish knowledge and practical works.
In PIAC finance department is a very big unit only in Lahore office 40 persons are working in
the finance departments. Each and every one is highly educated and trained for his job
specification. Many loop holes were also observed in the working of the unit. The use of
COSSAP 3 for accounting and finance really make it easy for the employees to do their job on
time. In 6 weeks I learned a lot of things and realize that there is a huge difference between the
bookish knowledge and practical working environment.
Page 41
Limitations and problems
In the period of 6 weeks I learnt and understand many
things besides this I also underline many problems in
the organization
There is no concept of punctuality and regularity in the organization
No specific job is defined with respect to the specific qualification
Each department is has too much employees
There is a cold war between each department every department thinks he is the most important
department of the company
Too much allowance and benefits are assigned to each employee
Highly centralized structure is also a problem in decision making
Cossap 3 is now obsolete a new and advance software should be used
The software should be online
Training room is very old and require proper construction
It department is not doing and up to date work
Page 42
Suggestions and Recommendations

In my 6 week of internship I learnt many things and observed many loop holes in the
organization. These loops holes exist both at station level as well as to a particular department. I
have recommended some suggestion few are general and some are specific to the Finance
department.
A bit flexible organizational structure:-
Justification
The overall structure of PIA is highly centralized, being a student of management and
business administration, I have learned from latest management theories and case studies that
such structure is not good for a revenue generating organization. Such structure has following
problems
 Too much delay in decision making

 Obstacles in new ideas & creativities
Due to centralized structure no station can take any decision as they are not allowed to do so.
Therefore each decision too much time in business time is money and due to centralized
structure a lot of money is wasted.
My suggestion is not to completely decentralize the structure but make it a bit flexible that each
station can take those decisions which do not affect the revenue of the organization like decision
of internee and etc.
There are too much qualified people in Lahore station Chartered accountant, MBA finance from
UK but no one do any creative work everyone just follows the predetermined rules as no one is
said to do so this all can be change by making some change in the organization structure.
Page 43
Performance base Incentive program:-
Justification
There is no incentive base program in the whole organization. To keep the high motivation
level of the employee’s performance base incentive programs are very fruitful. From the
discussion I came to know that in 2005-07 a performance base program was introduced and there
were very fruitful results of this program. Besides monetary incentive following programs should
also introduced
o Employee of the station

o Employee of the year
o Employee of the month
o Employee of the department
Monthly Inter-department meeting
Justification
An organization is place where people work together for a common purpose. In

organization inter-departments meeting should be arranged on monthly basis. In this way each
department will realize the problem facing by the other department. In this way a close and
strong bond will build among the employees.
In my internship period I realized that each department thinks that he is the most important unit
in the organization. This kind of attitude causes a cold war among the employees everyone tries
to beat the other in the result whole organization suffers. There should be no completion between
the departments. There should be a constructive competition in each department. An employee of
finance should try to perform better than his finance’s colleague similarly marketing employee
Page 44
should try to perform better than his colleague. In this way productivity of each department will
increase and in result whole organization performance will be increased.
COSSAP– III should be web based (online) in order to save precious time in transferring
of data.
Proper computer training should be provided to the employees of the company
accordingly.
Government Corporation should be made independent under a new division of aviation
in the ministry of communication.
There should be clear distribution of work and only qualified person should be appointed
on jobs.
There should be proper downsizing/rightsizing in PIAC
There should be improve service standards and that should be quality oriented
There should be more advertisement in print & electronic media
With respect to finance department
SAP should be introduced for accounting purpose
Justification
COSSAP3 is good software but the version used by the PIA is not according to the modern
needs. Instead of this SAP application should be adapted as their applications are specifically for
accounting purpose. In COSSAP 3 if a random page print is required then all the rest of pages
print has to take. For only Page number 300 rest of 299 page print has to be taken due to
incapacity of existing system.
Page 45
Zero cancelation charges:-

Justification
Unfortunately from the last couple of years many time passengers deprived of their
flight due to some technical problem or some other issue of the PIA management and
when that person came for refund 250 rupees are subtracted for cancelation charges.
Such persons lose their flight due to the negligence of the PIA so there should be no
cancelation charges. On the other hand management should apologies for the
inconvenience and make a better offer for the future to retain them for future.
Refund facilities should be provided on airport:-
The refund unit is controlled by on two people in the station but this is not quite
convenient for the customers. There is no refund facility on the airport such facility
should be provided on the airport.
Post assigned to specific qualification:-
In the department there are different people with

different qualification. Some are B.com, MBA, M.com, ACCA, ACMA, CA. But their duty is
not defined as to their qualification. Due to this they cannot perform their job up to the
mark. Each post in the department should be allocated to the persons who are fit for
the job.
References
Page 46
Annual report 2012
www.Piac.com
And From the following respectable employees
Appendix
2012 2011
------------ Rupees in '000 ----------
Page 47
---
ASSETS
NON CURRENT ASSETS
Fixed assets
- Property, plant and equipment 153,662,065 146,214,419
- Intangibles 3,238,045 2,973,990
156,900,110 149,188,409
Long-term investments 94,394 86,088
Receivable in respect of Centre
Hotel 734,496 679,487
Long-term loans 12,009 15,407
Long-term deposits and
prepayments 6,020,026 9,278,981
163,761,035 159,248,372
CURRENT ASSETS
Stores and spares 4,096,403 3,895,832
Trade debts - net 10,014,544 8,936,690
Short-term loans and advances 2,054,153 329,433
Trade deposits and prepayments 1,204,634 1,305,268
Other receivables 4,300,365 2,423,473
Short-term investments 517,767 594,749
Taxation 102,102 93,680
Cash and bank balances 6,303,877 3,239,943
28,593,845 20,819,068
TOTAL ASSETS 192,354,880 180,067,440
2012 2011
------------ Rupees in '000 ------
-------
Page 48
EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES
Share capital 28,779,674 28,779,674
(107,420,680
Reserves (138,217,947) )
(109,438,273) (78,641,006)
Advance against equity from Government of Pakistan
(GoP) 1,928,167 -
Attributable to the Holding company's shareholders (107,510,106) (78,641,006)
Non-controlling interest 1,385,606 1,081,405
TOTAL EQUITY (106,124,500) (77,559,601)
SURPLUS ON REVALUATION OF PROPERTY,
PLANT
AND EQUIPMENT - NET OF TAX 26,213,286 22,854,589
NON-CURRENT LIABILITIES
Long-term financing 28,120,287 44,633,808
Term finance and sukuk certificates 4,394,027 10,925,653
Liabilities against assets subject to finance lease 38,305,557 47,351,568
Long-term deposits 534,767 444,817
Advance rent - 4,831
Deferred taxation 18,314,706 15,189,571
Deferred liabilities 13,206,159 9,228,697
102,875,503 127,778,945
CURRENT LIABILITIES
Trade and other payables 55,313,306 46,336,731
Accrued interest 6,784,356 4,727,025
Provision for taxation 679,144 1,072,935
Short-term borrowings 61,354,530 25,801,027
Current maturities of:
- Long-term financing 20,783,496 11,317,288
- Term finance and sukuk certificates 15,195,733 8,664,107
- Advance rent 4,831 4,392
- Liabilities against assets subject to finance lease 9,275,195 9,070,002
169,390,591 106,993,507
TOTAL LIABILITIES 272,266,094 234,772,452
TOTAL EQUITY AND LIABILITIES 192,354,880 180,067,440
Profit and loss account
2012 2011
Page 49
------------ Rupees in '000 ---------

---
REVENUE - net 124,777,545 127,476,192
COST OF SERVICES
Aircraft fuel (61,157,291) (62,965,435)
Others (59,045,386) (58,692,933)
(120,202,677) (121,658,368)
GROSS PROFIT 4,574,868 5,817,824
Distribution costs (7,630,949) (6,830,850)
Administrative expenses (12,298,168) (11,009,338)
Other provisions and adjustments (698,310) (652,950)
Exchange loss - net (6,703,945) (4,220,191)
Other operating income 3,327,619 525,563
(24,003,753) (22,187,766)
LOSS FROM OPERATIONS (19,428,885) (16,369,942)
Finance costs (12,169,934) (10,487,413)

Share of loss from associated
company (637) (790)
LOSS BEFORE TAXATION (31,599,456) (26,858,145)
Taxation (768,817) 934,790
LOSS FOR THE YEAR (32,368,273) (25,923,355)
Attributable to:
Equity holders of the Holding
company (32,401,413) (25,970,801)
Non-controlling interest 33,140 47,446
(32,368,273) (25,923,355)
2012 2011
-----------Rupees in '000------
Page 50
-----
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 904,742 9,631,070
Profit on bank deposits received 51,399 45,997
Finance costs paid (10,112,603) (8,856,552)
Taxes paid (1,197,159) (1,210,031)
Staff retirement benefits paid (617,559) (467,188)
Long-term deposits and prepayments - net 773,850 462,344
Net cash used in operating activities (10,197,330) (394,360)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (7,947,165) (4,131,561)
Proceeds from sale of operating fixed assets 79,359 10,791
Purchase of intangibles (158,077) (137,437)
Payments against long-term loans 3,398 (1,300)
Proceeds from sale of short-term investments 216,879 712,168
Net cash used in investing activities (7,805,606) (3,547,339)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital - 3,004,726
Proceeds from advance against equity from GoP 1,928,167 -
Repayment of long-term financing (8,504,428) (11,304,415)
Proceeds from long-term financing 500,000 15,339,317
Redemption of term finance certificates - (2,560)
(Payment) / receipt of advance rent (4,391) 9,223
Proceeds from long-term deposits 89,950 60,524
Payment of dividend to non-controlling interest (29,983) (29,980)
Repayment of obligations under finance lease - net (8,251,697) (8,548,597)
Net cash used in financing activities (14,272,382) (1,471,762)
Decrease in cash and cash equivalents (32,275,318) (5,413,461)
Cash and cash equivalents at the beginning of the year (22,561,084) (17,110,312)
Effects of exchange rate changes on cash and cash
equivalents (214,251) (37,311)
Cash and cash equivalents at the end of the year (55,050,653) (22,561,084)
CASH AND CASH EQUIVALENTS
Cash and bank balances 6,303,877 3,239,943
Short-term borrowings (61,354,530) (25,801,027)
(55,050,653) (22,561,084)
Page 51

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PIA Summer Internship 2013

Working in Finance department ................................................................................................................. 20

Profile of the Industry:-

PIAC has the most influencing infrastructure in this industry

But it is pity that except PIAC every company is generating

Department No. of Employees

1. HRM And ADMIN staff 1566

The hierarchy of PIA organization is divided in eleven categories shown as below

Birth of a Nation, Birth of an airline:-

A new national airline for Pakistan (PIAC 10th 1955

Safety & Quality Certifications

Organization & Management System

Quality Management System (ISO 9001:2008) Certifications

Industrial Swot analysis

 Pakistan International Airline

Number of planes and their destination

Type Total Routes

Following is the view of 2010

Comparison of Cost of operation

Overview of the PIA town office Lahore finance department

Mr.Shahid Hassan Zaidi

Asst. Manager Asst. Manager Asst. Manager

The whole finance department is sub divided in 7 units listed below

Nature of working of Finance department

Working in Finance department

Revenue Department Structure

R1 = revenue from tickets

R 2 = revenue from cargo

R 3 = cargo carriage shipment (international)

Revenue from Each unit of PIA

Domestic Market Share

The current position of PIA is clearly shown in below chart

International Market Share

Geographical segmentation of Revenue

MCO (Miscellaneous Charges Order)

Automation & Reconciliation:-

PIA town office Lahore has 2 main banking operations

Payments of the Head Office

Imprest A/C Collection A/C

Following is the brief process of entering imprest account data in system

Once the system is started a login ID and password is entered

Login ID: R1B

Main page of COSSAP 3

1. STATION MASTER DATA MODULE

For HBL account reconciliation option 10 is selected

Option 10 (DISBURSEMENT MODULE)

Option 6(BANKING MODULE OF IMPREST ACCOUNT)

Option 2(PRESENTED/UNPRESENTED CHEQUE APPLICATION)

Option 2(ENTER DATE OF PRESENTED CHEQUES)

Option 8 = BANKING CONTROL MODULE

Option 3 = BANK RECONCILIATION APPLICATION (COLLECTION A/C)

Option 8 = GAIN/LOSS ON CREDIT

Their position and hierarchy is shown in below

Mr. Attique Mr. Waqas Ms. Afifa

Functions performed in the unit:-

Four major kind of functions are done by this unit

Sir Waqas also deals with the medical stores payment.

The reports of this unit are called D-15.

This unit performs the following operations

Agency Unit hierarchy

Mr. Tahir Qaddri

Following works are practiced in this unit

1. Receiving sales reports of agents