Internship Report
Finance
Department
Dedication
ACKNOWLEDGEMENT
I am grateful to Almighty Allah who gave me all the strength, courage
preservation and patience to finish my Four weeks of Internship Program
at SSGC and in achieving my task fruitfully. Then I would like to extend
my gratitude to SSGC HR management especially to Mr.Akbar for giving
me an opportunity to enrich and upgrade my experience and skills. It was
quite a great experience for me to work with diversified and literati people
and helped me to understand cross-cultural-differences.
I would like to take this opportunity to formally thank Mr. Gulab Baloch
(Deputy Chief Manger-Fixed Asset), Mr. Saleem Durani (Manager -Store), MR. Anees Hussain (Chief Manager- Local Order Section) and Mr.
Wajeeh (Deputy Chief Manager- GDS) for providing their immense
support and unwavering guidance during conduct and completion of this
internship report on SSGC and it became possible for me to complete this
work within short time.
I would specially like to thank Ms. Aliya peerzada (Deputy ManagerGDS) and Mr. Waseem (Deputy Manager- Insurance Section) for their
constant support and guidance and for solving all my queries during the
course of my internship. It was because of their kind efforts that I have
been able to explore the practical world in a very professional manner
NTRODUCTION
INTRODUCTION TO SSGC
Introduction:
Sui Southern Gas Company (SSGC) is Pakistans leading integrated gas Company.
The company is engaged in the business of transmission and distribution of natural
gas besides construction of high pressure transmission and low pressure distribution
systems.
SSGCL transmission system extends from Sui in Balochistan to Karachi in Sindh
comprising over 3,220 KM of high pressure pipeline ranging from 12 24 in
diameter. The distribution activities covering over 1200 towns in the Sindh and
Balochistan are organized through its regional offices. An average of about 388,828
million cubic feet (MMCFD) gas was sold in 2009-2010 to over 2.5 million industrial,
commercial and domestic consumers in these regions through a distribution network
of over 37,000 Km. The company also owns and operates the only gas meter
manufacturing plant in the country, having an annual production capacity of over
750,000 meters.
The Company has an authorized capital of Rs. 10 billion of which Rs 6.7 billion is
issued and fully paid up. The Government owns the majority of the shares which is
presently over 70%.
The Company is managed by an autonomous Board of Directors for policy guidelines
and overall control. Presently, SSGCs Board comprises of 14 members. The
Managing Director/Chief Executive is nominee of GOP and has been delegated with
such powers by the Board of Directors as are necessary to effective conduct the
business of the company.
Core Business:
The main activity of the company is transmission and distribution of gas in Sindh and
Baluchistan.
Secondary Activities:
The company is also engaged in certain activities related to the gas business including
manufacturing and sale of gas meters and construction contracts for lying of pipelines.
Thus the core functions of SSGC can be elaborated as under
Purification of Natural gas from Sui Fields
Transmission of Natural Gas from Pirkoh, Sari Hundi, Badin, KandhKot,
Mari, Daru and Kadanwari gas fields
Distribution of Gas in Sindh and Baluchistan provinces
Manufacturing and sale of gas meters
Construction contracts of laying pipelines
SSGCs VISION
To be a model utility, providing quality service by maintaining a high level of ethical
and professional standards and through the optimum use of resources.
SSGCs MISSION
To meet the energy requirements of customers through reliable, environment-friendly
and sustainable supply of natural gas, while conducting company business
professionally, efficiently, ethically and with responsibility to all our stakeholders,
community and the nation.
Organizational Structure:
The Company is organized into six functional divisions -Transmission, Distribution,
Commercial, Engineering Services, Management Services, and Finance. Each
division is headed
by a Senior General Manager assisted by a team of professional staff, with the
exception of Finance, which is headed by the Deputy Managing Director. Policy
matters relating to the natural gas sector are handled by the GOP. OGRA is
responsible for regulation, pricing, revenue determination and compliance to service
standards. The Board of Directors has the overall responsibility for the management
and control over the Company. The management enjoys operational autonomy. The \
major portion of the work force consists of technically qualified and skilled personnel.
ORGANISATIONAL CHART
FUTURE OUTLOOK
The Company is pursuing an ambitious five year development and expansion plan
estimated at Rs 42.9 billion. Key objectives of the strategic plan for the next five
years (2005-06 to 2009-10) are the following:
Expansion of transmission network by 608 Kms from 2,942 km in 2005 to
3,550 km by 2010, enhancing capacity from 1,300 MMCFD in 2005 to 1,700
MMCFD by 2010.
Expansion of distribution network and supply mains by 5,236 km from 25,764
km in 2005 to 31,000 km by 2010 connecting 600 new towns and villages in
Sindh and Baluchistan.
Enhancement of gas supply to power plants, industrial and commercial sectors
including supply of gas to previously deprived areas in the domestic sector.
Increase of the customer base from nearly 1.8 million to 2.2 million by adding
447,000 new customers to the Companys system.
Consistent appreciation in shareholders value by increasing the companys
asset base and significant improvement in productivity and efficiency.
Focus on improved, friendly and efficient customer services under the vision
of Service with a smile.
Establishment of 16 fully automated (additional 8 in progress) on line
customer facilitation centres.
Multiple bill payment options and channels (ATM, Call Centres, ORIX POS,
Internet, Drop Boxes, and NADRA-Kiosk).
Latest technology digital prepaid meters with improvement of call centres to
include an online customer information system.
STRATEGIES
The company has moved beyond basic reengineering as it builds and reinforces
culture change by creating performance opportunities, developing Human
Resources and pursuing overall business excellence.
The company identified successfully different layers of change that needed to be
managed concurrently for large projects to be implemented on schedule and
within budget. Within the induction of new, improved business process, an
appreciable change in productivity was achieved.
The company has taken the lead in integrating Change Management within its
people, processes and technology. Optimizing market flexibility and maximizing
SUI SOUTHERN GAS COMPANY| M.OSAMA SALEEM | INTERNSHIP 9
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COMPANYS OBJECTIVE
The Company aims to supply natural gas wherever there is sufficient load to justify
the cost of infrastructure. In many places the gas network is being expanded to meet
SUI SOUTHERN GAS COMPANY| M.OSAMA SALEEM | INTERNSHIP 10
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Personal Introduction:
Currently, I have Cleared B.Com from a renowned university of Pakistan, University
of Karachi, Karachi. I have recently got admission in MBA from Iqra University
Karachi. I have done introductory courses of Management, Economics, Marketing,
Finance and Accounting. However, I have developed substantial interest in Finance
SUI SOUTHERN GAS COMPANY| M.OSAMA SALEEM | INTERNSHIP 11
REPORT
Personal Data:
Father Name:
Date of Birth:
NIC No:
Marital Status:
Religion:
Nationality:
Cell No:
Email Address:
M.Saleem Qasim
5th April, 1993
42201-5940244-7
Single
Islam
Pakistani
0342-2339986
sam_saleem97@yahoo.com
Computer Skills:
Oracle finance Software & Accounting Softwares i.e. Peach tree & Quick Book
MS Office Suite
Internet Surfing/Browsing
MY EXPERIENCE IN SSGC
Purpose of the Internship:
Personal Learning
Corporate Culture; Understanding:
As the basic purpose of internship is the introduction of corporate culture to the
students. It aims at understanding how the things are practically going on in the
organizations, how the theories we read in books are implemented and executed. In
this regard, I learnt a lot in the dynamic organization of Pakistan SSGC. I learnt the
core values of the organization. The meeting and communication with the diverse
people made me understand and adjust myself with the different people working in
the organization. More over, the dynamic employees shared their ups and downs and
other different experiences of their corporate life that has been a great learning for me.
Punctuality:
Punctuality the first and foremost things which is essential for a professional at work
i.e. punctuality and the very first thing I have learnt in SSGC i.e. previously I have
heard that famous quotation which goes like that late comer must suffer I did not
know in terms of what he may suffer. At SSGC I saw its practical exhibition in terms
of not paying the attention of BOSS or he may not learn as he can for his slackness for
being late, SSGC made me punctual and made me realized that TIME IS MONEY.
III.
IV.
Appreciate noble / gracious ideas presented by any your team member and try
to become part of the solution not part of the problem.
V.
OVERVIEW OF
FINANCE
Overview of the Finance Department
DEPARTMENT
FINANCE
Finance
Treasury
Accounts
Payroll
Insurance
Loans
Fixed Assets
Payments
Investments
MIS
Gas Purchase
Gas Sales
Distribution
System
Transmission
Project
Taxation
Financial
Feasibilities
Revenue Control
TREASURY FUNCTION
The Treasury Function Department of the finance department basically deals with the
disbursements, collection, receipts, management of funds, payment of foreign or
domestic loans, revenue control and reconciliation of bank and customer accounts. In
short, treasury functions deals with the flow of money either in the form of inflows or
outflows. An important task of the Treasury function department is to keep a check on
the companys current liabilities account and make sure that their current liabilities do
not exceed their current inflows of cash.
The treasury function department can be further subdivided into five major categories,
which are somewhat interrelated. The division is as follows:
Cash & Bank
Loan Payments and Funds Management
Revenue Control
Taxation
Investments
All these sections have separate section heads who are responsible for the activities of
the people working in their section. These section heads report to Chief Manager
(CM) Treasury Function who is responsible for the overall activities of the treasury
function Department.
FINANCE DEPARTMENT
The Finance Department is further subdivided into sections, which includes the
following:
Payroll
Fixed Assets
Insurance
Gas Purchase
Transmission Project
Payments
Trade Debts:
Trade debts are carried at cost less provision for doubtful debts, if any. Balances
considered bad and irrecoverable are written off when identified.
Revenue Recognition:
Revenue from Gas sales is recognized on the basis of gas supplied to customers at
rates periodically announced by the Oil and Gas Regulatory Authority (OGRA).
The meter rental is recognized monthly at specified rates for various categories of
customers on an accrual basis whereas the sale of meters and gas condensate is
recognized on dispatch to the customers.
Deferred credit income is amortized to the profit and loss account over the useful
life of the related assets. Dividend income on equity investments is recorded on
accrual basis.
Security deposits from contractors are free of mark-up and refundable on the
cancellation of contract.
SUI SOUTHERN GAS COMPANY| M.OSAMA SALEEM | INTERNSHIP 18
REPORT
AREAS OF WORKING
I sought opportunity to join SSGC to upgrade my skills in multi-dimensional
approach to the section of the Finance Department. Whatever I attained there is
elaborated as under:
Pre-Audit Section
Fixed Asset
General Ledger
Inventory Accounting
Insurance Section
Project Section
FIXED ASSEST
Responsibilities of Fixed Assets:
Following are the main responsibilities of fixed assets:
1. To maintain the capitalization, depreciation, retirement and disposal of all the
fixed assets.
2. Preparation of capitalization and WIP schedules of all the companies i.e. Karachi
distribution, Hyderabad distribution, Baluchistan distribution, Transmission and
Head Office.
3. Prepare quarterly, half yearly and yearly accounts and schedules of organization.
Depreciation:
Once an asset has been capitalized, working for its depreciation starts. Full year
depreciation is charged for the first year regardless of its purchase data. The company
uses the straight line method of depreciating except for meter plant, where reducing
balance method is used. Depreciation rates differ for different assets. It even differs
for same assets in different cities.
In the certain situation we call for making adjustments e.g. transfer of an asset from
one unit to another, different between assets in books and its physical existence etc.
Approval
Approval
In
In
Budget
Budget
Intent
Intent
Letter
Is
Letter
Sent To Is
Sent To
Supplier
Supplier
****PBG
****PBG
Is
Is
Submitte
Submitte
d By
d By
Supplier
Supplier
Asset Is
Asset Is
Capitalize
Capitalize
d
d
* Department
** Fixed Asset Requisition
*** Material Management
****Performance Bank Guarantee
User
User
*Deptt.
*Deptt.
Sent
**FAR
Sent
**FAR
To
***M.M
To ***M.M
Evaluatio
nEvaluatio
Report
n Report
Is
Is
Prepared
Prepared
Bid
Bid
Opening
Opening
For
For
Purchase
Purchase
Quotatio
Quotatio
n Is
n Is
Received
Received
From
From
Supplier
Supplier
Purchase
Purchase
Order
Order
Sent
To
Sent
To
Supplier
Supplier
Asset Is
Asset Is
Received
Received
By
R&D
ByKT
R&D
At
At KT
Charge
Charge
To
To
Asset
Asset
Clearing
Clearing
Account
Account
Material
Material
Receiving
Receiving
Statemen
Statemen
t Is
t Is
Prepared
Prepared
Work In
Work In
Progress
Progress
(In case of
(In case of
construction)
construction)
Inspection of the
Advice prepared by
asset to be retired
is conducted for
verification of the
inventory section
condition of that
Asset sent to
Retirement advice
is approved /
asset
store at KT for
disposal
Section Inspection
disapproved on the
basis of inspection
inventory along
with ARA
and MD
Step
Accounting
Dr.
/Cr.
Contr
a
Purchasing
Requsition
Purchasing
Requisition
Inventory
Receiving
3081111
2073214
C1
C2
Inventory
Deliver
3011999
3081111
C3
C1
AP
Invoice
AP Accrual Account
Liability Account
2073214
2073201
C2
C4
AP
Payment
Liability Account
Bank
2073201
Bank a/c.
C4
Asset Cost
3011999
5062101
3012117
DR
C3
DR
3012117
3011117
3013991
4026401
DR
3012117
3011117
3013991
4026401
DR
No Accounting
No Accounting
FA ADDITION
Assets
Assets
Assets
Assets
FA MODULE
FA MODULE
FA MODULE
FA MODULE
CR
CR
FA MODULE
FA MODULE
FA MODULE
FA MODULE
Acc. Dep.
Asset Cost Account
Proceed from sale of FA
Profit on sale of FA
CR
DR
CR
FA MODULE
FA MODULE
FA MODULE
FA MODULE
Acc. Dep.
Asset Cost Account
Proceed from sale of FA
Loss on sale of FA
CR
DR
DR
Purpose:
To maintain proper and accurate, books of accounts.
To facilitate and co-ordinate the annual audit
To comply with the policies and the procedure notified by OGRA from time to
time.
To comply with the policies and the procedure notified by Security and Exchange
Commission of Pakistan (SECP).
To report the results to board of directors and share holders of the company
GAS
DISTRIBUTION
SYSTEM
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REPORT
(GDS)
GDS - An Introduction:
The Gas Distribution System (GDS) is one of the vital sections of SSGCs Finance
Department. The basic task of the Finance departments GDS is to perform all the
accounting activities related to the expansion of distribution and transmission network
for enhancement of gas supply to power plants, industries, domestic and commercial
sector including supply of gas to previously deprived areas in the domestic sector.
Distribution System accounting include development of mains laying rates (MLR) all
region rectification and monitoring of Distribution Budget of all region and project
accounting related to distribution Projects.
For achieving the above mentioned targets the GDS of the finance department
performs a number of activities. These include preparation of feasibilities of
Transmission projects and Gas fields under various options, preparation and
monitoring of Annual Distribution budgets for all new town and villages, uploading
the budget of each project on ERP system, processing Rehabilitation, Reinforcement
and New towns schemes of all regions including re-appropriation of Budget and
settling issues related to Distribution of all regions, maintaining funds position related
to New Towns & Villages and coordinating with Sales Department and Ministry of
Petroleum & Natural Resources (MNPR) in this regard . It includes submission of
performance reports/ status reports to MNPR through Sales.
Infrastructure:
SSGCL transmission system extends from Sui in Baluchistan to Karachi in Sindh
comprising over 3,200 KM of high pressure pipeline ranging from 12-24" in diameter.
The distribution activities covering over 1200 towns in the Sindh and Baluchistan are
organized through its regional offices. An average of about 378,468 million cubic feet
(MMCF) gas was sold in 2007-08 to over 2.040 million customers. It includes 3,448
industrial, 22,192 commercial and 2,014,827 domestic consumers in these regions
through a distribution network of over 31,877 Km. The company also owns and
operates the only gas meter manufacturing plant in the country, having an annual
production capacity of over 550,150 meters.
Responsibilities of GDS:
The issuance of Job cards, Journalisation, reconciliation of deposit is also the
responsibility of the finance department. For the GDS, it is also necessary to ensure
that the amount transferred to Deferred Credit with respect GOP funds & customers
advance is in accordance with IAS & Companys policy.
Preparation of financial feasibilities is one of the major tasks of this department.
Feasibility reports are prepared for providing recommendations to the managements
regarding the approval of various projects. These financial feasibilities and reports are
prepared for the following projects.
For supply of Gas to Industrial, Commercial, CNG stations and Co-operative Housing
society on cost sharing basis.
Transmission projects
Supply of gas from Gas fields
Construction of pipeline and to received pipeline rental.
Supply of gas to New towns & villages on request of GOP
Industrial estate
Other Capital project
This section consists of one Deputy Chief Manager and two Deputy Manager. Two
ERP executives are also a part of the GDS team.
Dr.
Advance
Cr.
Store
Project
Dr.
Store
Cr.
GDS
Asset/Revenue
Dr.
Project
Advance
Cr.
Dr.
Cr.
Existing Areas
The core activities of DSS can be broadly divided into two major areas
Existing Areas
New Town and Villages
DSS works for supply of gas to the previously derived areas which includes many
towns and villages and also for the enhancement of the existing gas supply system to
our industrial, domestic and commercial sector. However the detail process is
discussed in the later part of the report
SUI SOUTHERN GAS COMPANY| M.OSAMA SALEEM | INTERNSHIP 34
REPORT
Distribution Mains
Major Mains
Minor Mains
Paid Mains
Distribution Mains:
Distribution Mains consist of network of pipes laid in streets and towns for providing
gas to the customers.
These mains are constructed from the outlet of T.B.S / from the SSGC system up to
the prospective consumer premises i.e. in streets of Cities, Towns & Villages. The
Normal pressure of gas is maintained from 08 to 60 PSIG.
Major Mains
Minor Mains
Paid Mains
Major Mains:
As per present practice of the company, Mains extension of 1 km and above for any
particular scheme or area is categorized as Major Main. All such cases are approved
by the management once in a financial year in the Annual Development Plan.
Minor Mains:
In cases, where length of mains extension required, is less than 1Km then it is
categorized as Minor Main. In this case also, it is necessary to get certain kilometers
approved by the management. However, these cases are processed throughout the year
under the limit of approval obtained.
Paid Mains:
When the case does not fall under the CCE criteria and the capital cost per consumer
far exceeds CCE criteria then the case is treated as PAID MAINS.
Under this case an option will be given to the customer to either process the project
through cost sharing or on self-finance basis, if they agree.
Standard Procedures
Request for mains
Review of request
Planning and site survey
Cost calculation
Feasibility
Payments
Issuance of job card
Execution of the job
Commissioning advice
Issuance of Circulars
Booking of cost
Review of Request:
The request will be review for the completion of documents. Sales department ensures
that area drawing is
Available
Not available
If the area drawing is available then the case is forward to planning for the survey of
site.
If the drawing is not available then sales department informs the customer to arrange
the area drawing. If the customer arranges the area drawing then the case forward to
planning for site survey otherwise the case will not be further proceed.
Sales department forwards the case to planning department on Book No.1
Cost Calculation:
After receiving the survey proposal, sales departments works out the estimated cost of
the case according to the data provided by the planning department. Sales department
checks that whether the extension is for major mains or minor mains.
If the case is for the extension of major mains and it is feasible then the case is
included in the ANNUAL DEVELOPMENT PROGRAMS PENDING file.
The criteria for checking the feasibility of the case is fixed by the CABINET
COMMITTEE ON ENERGY (CCE) are as under:
PROVINCE
CAPITAL COST PER CONSUMER
Punjab and Sindh
Rs.20,000
N.W.F.P
Rs.40,000
Balochistan
Rs.100,000
If the case is falling under the above criteria then it is treated as feasible. A list is
prepared by the sales department on the basis of least cost method (projects are
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Approval of Project:
The criterion for the approval of the project is as under:
CASE I
CASE II
PROJECT COST
Less than or equal to 1 million
More than 1 million
Theses projects requires approval
Theses projects are forwarded to
from two SGMs
finance department for the preparation
- SGM ( Customer Services)
and approval of financial feasibility of
- SGM (Transmission &
the project
Distribution)
Feasibility Study:
Following are the steps involved in the process of feasibility.
Letter from
Sales department
Preparation and
approval of feasibility
Letter to sales
Department
Impact on GDS
after Allocating
for Regulatory
Return
Irrespective of
Impact
Full Positive
Partial Positive
Negative
Project
Cost
Policy
Project
Cost is lees
than Rs.1
million
Project cost
is more
than Rs.1
million
Execution of Job:
The job is executed with the involvement of Planning and Construction.
Commissioning Advice:
The construction department sends a commissioning advice to sales department to
inform that the area is now on gas.
Issue of Circulars:
Sales department issues circulars to registered contractors stating that they can start
the sales activities. This circular is only issued in the case of major mains.
Booking of Cost:
All executed job cards are sent to finance department along with all material
requisitions and other coast details for the booking of cost of the scheme.
STORES SECTION
The store is responsible for receiving, keeping and sending all the necessary materials
the company uses for its operations in various locations throughout the country. All
the items have a 9-digit index number.
Purpose:
To check the store balances, maintain and control the records of every kind of
stock/material placed in stores at different locations of company.
Here, in SSGC Head Office record of each store all location in company is controlled
and checked for proper receipt and issue of items.
Working:
1. Extracting stores balances in ERP.
2. Checking of stores balances with ledger balances on ERP.
3. Reconciliation store stock loan balances with ledger balances for the more
accuracy.
4. Checking of miscellaneous reports of stores balances for confirmation.
5. Preparation of reports of stores stock on quarterly, half yearly and annually.
Debit
Adjustment
Receiving
Statement
Local / Imports
NFLOWS
Voucher
INFLOWS
Return
Vouchers
STORE
OUFLOWS
Material
Requisition
Form
Credit
Meter
Requisition
Form
OUT
Adjustment
Voucher
COMPANY
DISTRIBUTION
TRANSMISSIO
N
METER PLANT
DISTRIBUTION STORES
DISTRIBU-TION
STORE
KARACHI
SINDH
QUETTA
MAIN STORE
SITE
HYDERABAD
SUKKUR
QNGDP
GULSHAN
STORE
NAWABSHAH
LARKANA
ST. QUETTA
ST.STORE SITE
ST. HYDERABAD
ST. SUKKUR
DISTRICT SITE
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REPORT
TRANSMISSION STORES
TRANSMISSION
OPERATION STORE-KT
HQ-III HYDERABAD
HQ-II NAWABASHAH
HQ-I, SUKKUR
IRBPC-HQ-DADU
IRBPC-HQ SHIKARPUR
QPL(O&M)-SIBI
QPL(O&M)-QUETTA
CD-KHADEJI
PIRKOH-SUI
ST. KHADEJI
DISTRICT KHI
TERMINAL
METER
PLANT
METER PLANT
ST. METER
PLANT
STORE DEALINGS
Store accounting is based on meaning average basis. Each item has been allotted
index number according to the description and specification of material. Store index is
based on seven digits having fields of 00/00/000. 1 st 2 digits denote main section to
whom material is to be sent e.g. HO, Trans, MMP, etc. 2 nd 2 digits denote sub section
e.g. Finance in HO etc. 3rd 3 digits denote serial no of item like as Printing Paper, Pen,
Pipes etc. Stores system is based on the following store documents:
1. Material Receiving Statement
Foreign Receiving Statement
Local Receiving Statement
2. Material Requisition
3. Inter Store Stock Transfer
4. Material Return Voucher
5. Adjustment Memo
Store accounting is based on above store documents for generation of cost of material
received of issued.
2. Material Requisition:
When the store department issue the material to the user department according to
user demand the receipt is send to the store section for informing that we issue
that material to that user department in case of availability and approval of high
level management. That receipt known as Material Requisition. After receiving
that receipt the store department check the indenting department and particular of
job, store location code where from the material is issued, requisition serial NO:,
date of issued material, company code, function, account, organization unit and
project code, order number, quantity required, store index number, and quantity
issued through ERP that the requisite material is issued from store department or
not. After confirmation the receipt is put into records.
5. Adjustment Memo:
Sometimes during the entry we are doing mistake like wrong entry of index
number, invoice number, quantity, amount, job number, or others fro correct these
mistake companies make a journal voucher (JV) and correct the mistake. After
correcting the mistake the store department sends a receipt to the store section
with the name of Stores Adjustment Memo for updating changes. When the
receipt is received by the store section they check date of changing, store index
no: job number, quantity and remarks for what purpose that adjustment memo
made.
LOCAL ORDER
The local order section is one of the most important sections of finance department.
The local order section entirely responsible for the payment of bills to various
suppliers and vendors. This section is only responsible for make payment to the
material suppliers. This section prepares the voucher for only tangible goods not for
intangible goods (services).
The main object of LO is to make ensure, secure and smooth payment to the supplier
timely and to gain the confidence of suppliers. The bill payments made under LO are
classified into:
This section deals with material management department, R&D (store) and the
suppliers. LO section uses the Oracle application software to print a voucher after
punching data into system. The advantage of this software is that, if the wrong data is
punched in to the system, the voucher will not be printed.
LO section does not go though the payment process if any of the required documents
are missing just like, purchase order, receiving statement and the invoices.
In LO, payment system under go though some steps and procedures.
INTENDS
TENDER ENQUIRY
QUOTATION
PURCHASE ORDER
INVOICE
RECEIVING STATEMENT
APPROVAL
CHEQUE CREATION
PROGRESS
Tender Enquiry:
Once the requisition is submitted and approved by the GM of material management
department, the tender process takes place. SSGCL issues the tenders for the
purchasing of material through advertisement in newspapers. All the potential and
interested suppliers come forward and submit their quotations and bids. Quotations
are taken by three lowest bidders.
Purchase Order:
After the bid selection and approval from top authorities, the evaluation report and
purchase order is prepared with five copies, and the copy of purchase order is sent to
these following departments.
Procure Department.
Finance Department
Supplier (Original)
R&D Department
Intender copy
Invoice:
Invoice is a bill, which is prepared by supplier and sent to the customer for payment.
Receiving Statement:
When the materials are received and checked, receiving statement is prepared at R&D
department (store) and sent to bill section. Receiving statement comprises amount of
quantity, order number and the date on which material was received.
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Bank Guarantee:
It is the practice of SSGC to obtain bank guarantee from the supplier where tender
price exceeds Rs. 500,000 with respect to purchase order.
SUI SOUTHERN GAS COMPANY| M.OSAMA SALEEM | INTERNSHIP 53
REPORT
Financial Powers:
Previously payments up to Rs. 100,000, 200,000, and Rs. 500,000 required to be
approved by DCM, DGM and GM respectively. However, Deputy Managing (DMD)
has approved revised financial powers.
MIS Reporting:
DCM submits report on monthly basis regarding details of bills received and
processed during the month and detail of outstanding bills to DGM for further
submission to GM and DMD.
Dr.
Sales Tax-Adjustable
Dr.
Sundry Creditor
Sundry Creditors
Cr.
Dr.
Liquidated damages
Cr.
Cr.
Insurance Section
In the present world, where life is full of anxiety, dangers and risks, insurance is
essential to protect and compensate for sudden loss of life and property. It has also
been made compulsory by law in most of the countries to protect assets/property of
Government concerns and corporate bodies.
Basically insurance cover is confirmed when premium is fully paid and POLICY is
issued by the insurers, but in case of very huge volume of business like that of Sui
Gas Southern Gas Company Limited, a HOLD COVER letter from the insured is
enough for confirmation of insurance cover.
1.Fire Policies:
It provides full comprehensive coverage in respect of Loss or damage to property
due to fire and lightening , which can be extended to cover explosion, earthquake
(fire and shock), atmospheric disturbance (rain, flood, hurricane), heat or
combustion, riot and strike damage etc.
NICL provides this coverage in conjunction with the fire. It provides protection
against loss of gross profit incurred as a result of business interruption or interference
in business caused by an event indemnifiable under fire and allied perils policy.
Presently SSGC Fire Insurance Policy is taken from NICL Insurance Company.
Following are the list of Fire Insurance Policies:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
2.Accident Policies:
All the Accident policies are taken from NICL which are mentioned below:
c) Fidelity Guarantee
This policy covers the risk of employees embezzlement and misappropriation of cash
and other assets of the company.
d) Workmen's Compensation
This is mandatory by law. As per law SSGC is bound to provide insurance cover to its
contract employees.
e) Public Liability
This policy is obtained to reimburse loss sustained to assets of third party under
possession of SSGCL.
3. Marine Policy:
Marine insurance policy covers the risk of imports and exports as per requirement of
the organization. This policy can be extended to provide adequate cover to protect all
goods in transit by other modes of transportation, viz., by Air, Rail & Road. Through
insurance company the goods are protected from the time the goods leave the sellers
warehouse until they reach the buyers warehouse.
The party usually responsible for insuring the goods is determined by the sales
contract. To help the insured familiarize with the buyers and sellers responsibilities.
Presently SSGC Fire Insurance Policy is taken from NICL Insurance Company.
Commercial Vehicles.
Commercial Vehicles with Tracker.
Private Vehicles.
Private Vehicles with Tracker.
Motor Cycles.
7.Voluntary Insurance:
Voluntary Insurance has following features:
Presently SSGC Voluntary Insurance Policy is taken from New Hampshire Insurance
Company.
Proof of age.
Death certificate.
Burial certificate.
Photocopy of NIC of the deceased.
Bill Of Lading.
Bill Of Entry.
Purchase Invoice.
Original Insurance Certificate
II
Cr.
II
Dr.
Dr.
Cr.
Dr.
Cr.
II
Cr.
II
I
Dr.
Dr.
Cr.
Dr.
Recoverable From Insurance Company
Cr.
II
Dr.
Cr.
Dr.
Recoverable From Insurance Company
Cr.
Dr.
Recoverable From Insurance Company
II
II
I
Cr.
Dr.
Cr.
Dr.
Cr.
Surveyor Submits
The Survey Report
To NICL
POLICIES:
All The Policies Expired On
30TH June
Renewal Is Done On
1ST July
RECOMMENDATION &
SUGGESTIONS
SUI SOUTHERN GAS COMPANY| M.OSAMA SALEEM | INTERNSHIP 67
REPORT
SSGC is playing a leading role in the energy sector of Pakistan and is on its track of
meeting its strategic goals and objectives. Over the past 50 years, the company has
made momentous progress and has brought the fruits of clean, low cost and
environment friendly natural gas within the reach of over 1.9 million domestic,
commercial and industrial customers all over Sindh and Baluchistan. As a result, the
company has emerged as a leading fully integrated utility company that continues to
play a major role in fuelling national progress.
Following are the recommendations:
1.Management Issues:
During my internship, I observed that the contract employees are demotivated because
of unfairly treated & because of their dissatisfaction with pay and working conditions.
The salaries of the contract employees are very low as compare to amount of work
performed by them. Contract employees should given a chance to work on career
basis.
Lack of Training:
There is lack of training in some departments which create problem for employees to
work on the ERP system.
Recommendation:
It is recommended that training should be given to each employee periodically.
Sufficient training of the human resource is very important, so they would become
acquainted and proficient with the ERP system that is implemented.
SSGC needs to address various kinds of issues like some employees are under-valued,
some are under-trained, and some may be under utilized. Similarly some may be
demotivated and consequently perform well below their true capability.