ABBOTTABAD
Submitted by
Fahad Khan
Roll # 248
Supervised by
Abdul Waheed
SESSION
2017– 2018
INTERNSHIP REPORT ON
ABBOTTABAD
Submitted by
Fahad Khan
Roll # 248
Supervised by
Abdul Waheed
ABBOTTABAD
SESSION
2017- 2018
Government college of Management Sciences
Abbottabad
APPROVAL COMMITTEE
1. External Examiner
Mr_________________ Signature___________________
2. Supervisor
Head of Department
iii
DEDICTION
iv
Abstract
To study an organization, one needs to have reliable and relevant data and information. The
study makes use of two kinds of data, gathered through different sources, which can be
grouped as primary and secondary data
The data which has gone through mathematical and statistical techniques after its
collection is called secondary data. The secondary data sources which were consulted during
my study are the manuals, rules and procedural hand books, brochures and annual reports of
PTCL material available at newsletter, internet and books available on management.
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Table of Contents
Abstract ....................................................................................................................................... v
Acknowledgement....................................................................................................................... ix
vi
Chapter No.3 ............................................................................................................................. 23
Chapter No.3 ............................................................................................................................. 23
Product Introduction ................................................................................................................. 23
3.1 PTCL Landline ................................................................................................................... 23
3.1.2 Services for Corporate Customers ............................................................................... 23
3.1.3 Universal Access Number (UAN) ................................................................................. 24
3.2 V-fone.............................................................................................................................. 24
3.3 Ufone .............................................................................................................................. 24
3.3.1 KEY ACCOMPLISHMENTS ............................................................................................ 25
3.3.2 Performance .............................................................................................................. 25
3.3.3 Brand ........................................................................................................................ 25
3.3.4 International Coverage ............................................................................................... 26
3.3.5 Customer Service ....................................................................................................... 26
3.3.6 Network Coverage ..................................................................................................... 26
3.4 PTCL Broadband ............................................................................................................... 27
3.5 PTCL Smart TV .................................................................................................................. 27
3.6 EVO WIRELESS BROADBAND ............................................................................................. 27
3.7 Evo Wingle ....................................................................................................................... 27
3.8 Evo Charji ......................................................................................................................... 28
3.9 Competitor of Ptcl ............................................................................................................ 28
3.10 DIGITAL PHONE FACILITIES .............................................................................................. 29
3.11TOLL FREE SERVICE (0800)................................................................................................ 30
3.12 UNIVERSAL ACCESS NUMBER (UAN) ................................................................................ 30
3.13 UNIVERSAL INTERNET NUMBER (UIN) .............................................................................. 30
3.14 Premium services 0900 ................................................................................................... 30
3.15 BILL PAYMENT FACILITIES ................................................................................................ 31
3.17 NATIONAL TELECOMMUNICATION .................................................................................. 32
3.18.1 Human Resources Department ................................................................................. 33
3.18.2 Management Information System (MIS) .................................................................... 34
3.18.3 Marketing Division ................................................................................................... 34
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3.18.4 Information Technology Department......................................................................... 35
3.18.5 Finance Division ....................................................................................................... 35
Finance Wing..................................................................................................................... 35
3.18.6 PTCL’s Basic Organizational Units .............................................................................. 40
3.18.7 Differentiated Departmentation................................................................................ 41
3.19 levels o f Organizational Chart ......................................................................................... 42
3.20 My Assignments: ............................................................................................................ 45
Chapter No-4 ............................................................................................................................. 47
Financial Analysis ....................................................................................................................... 47
4.1 Introduction ..................................................................................................................... 47
4.2 Balance Sheet................................................................................................................... 47
4.3 Income statement ............................................................................................................ 50
4.4 Horizontal Analysis of Balance Sheet.................................................................................. 51
4.4.1 Interpretation ............................................................................................................ 53
4.5 Vertical Analysis of Balance Sheet...................................................................................... 55
4.5.1 Interpretation ............................................................................................................. 56
Chapter No-5 ............................................................................................................................. 68
SWOT ANALYSIS ........................................................................................................................ 68
5.1 STRENGTHS ...................................................................................................................... 68
5.2 Weaknesses ..................................................................................................................... 68
5.3 OPPORTUNITIES ............................................................................................................... 69
5.4Threats .............................................................................................................................. 69
Chapter No-6 ............................................................................................................................. 70
Conclusion & Recommendations ................................................................................................ 70
6.1 Conclusion ....................................................................................................................... 70
References ................................................................................................................................. 75
viii
Acknowledgement
I am full of gratitude to: Almighty ALLAH for giving me the life and energy to conceive
and actualize the internship and this report.
Our learned and erudite Supervisor Abdul Waheed Government college of Management
Sciences Abbottabad for his inspiring guidance, keen interest, and continuous encouragement
through out my internship report making efforts.
All Management Sciences Staff (GCMS Abbottabad) who implicitly or explicitly helped me
in my Internship Report.
Last but not the least I am highly indebted to staff of PTCL Abbottabad for providing me the
opportunity and support to accomplish my Internship.
Fahad Khan
ix
List of Abbreviations
3G Third Generations
4G Fourth Generation
NP Non-Personal
x
EXECUTIVE SUMMARY
My internship started with the official working hours starting from 9am to 4pm. During the
internship,
Chapter 2 includes introduction about the Organization, the Structures of the Organization,
which have the local and the nation-wide structure of the organization,
Chapter 4 is about the Financial Analysis of PTCL with the discussion of the overall
activities conducted during the internship.
Chapter 6 This Chapter consists of the Conclusion I did during the internship duration,
Recommendations that I though would benefit the organization.
After the Final Chapter All the Sources used for this report are listed in the references, and all
the helpful Material i.e charts Tables are given in the annexure.
xi
Chapter No-1
INTRODUCTION
For getting the Master degree in Commerce, each student is required to spend at least
8 weeks as an internee in a recognized organization. The students are required to work
in their specialized fields.
The main purpose of this program is to make students familiar with the practical
work, as there is great difference between the theory they have learnt during their
M.Com (Finance), and how the job is practically done.
Another important aspect of the internship program is that the internee is placed in
most of the departments of the organization through job rotation. It provides them
with a glance of each department, as the working period is too short for learning in
detail.
4) It can also provide assistance to students seeking financial data for analysis.
1
1.4 RESEARCH METHODOLOGY
The methodology that is adopted for this report is based on both the primary as well
as secondary data. The sources of primary data were:
2. Personal observations.
1. Annual reports
During Internship , it was observed that enough written material regarding the
Finance not available, so it had to count on the personal observation and interviews
with employees.
A lot of time was spent in PTCL at each department and the information was
collected from discussions and interviews with Managers Officers, so most of the data
of this report is primary source.
The span of operation is too large to be covered completely in short time of 6 weeks.
Which does not permit to fully analyze and understand the function, and the privacy
policy of PTCL also limits access to the organizational data and information that is
termed as confidential.
2
Chapter 4 is about the Human Resource Department in which I conducted the
Internship, along with the Services that are provided by the specified department at
national and local level, winding the section with the discussion of the overall
activities conducted during the internship.
Chapter 6 This Chapter consists of the Conclusion I did during the internship
duration, Recommendations that I though would benefit the organization.
After the Final Chapter All the Sources used for this report are listed in the references,
and all the helpful Material i.e charts Tables are given in the annexure.
3
Chapter No- 2
PTCL was incorporated on December 31st 1995 and commenced business on January
1st 1996. The idea behind this was to provide better services to its customers. This
was established to undertake the telecommunication business formally carried out by
Ex-PTC. It was responsible for carrying out all kinds of telecommunications activities
in the country. It was required to look after the existing telecom installations and their
automation and development. It was also to under take development program in
telecom field. All properties, assets, obligations and liabilities of PTC were
accordingly transferred to the PTCL on the 01-01-1996.
The P.T.C.L. is a prestigious organization and telecom services in the country are
getting better and better, since its incorporation.
The telecommunications industry is at the forefront of the information age delivering
voice, data, graphics and video at ever increasing speeds and in an increasing number
of ways. Whereas wire line telephone communication was once the primary service of
the industry, wireless communication services and cable and satellite program
distribution make up an increasing share of the industry.
These new services have been made possible through the use of digital technologies
that provide much more efficient use of the telecommunications networks. One major
technology breaks digital signals into packets during transmission. Networks of
computerized switching equipment, called packet switched networks, route the
packets. Packets may take separate paths to their destination and may share the
paths with packets from other users. At the destination, the packets are reassembled,
and the transmission is complete. Because packet switching considers alternate routes,
and allows multiple transmissions to share the same route, it results in a more
efficient use of telecommunications capacity as packets are routed along less
4
congested routes. Wireless telecommunications carriers, many of which are
subsidiaries of the wired carriers, transmit voice, graphics, data, and Internet
access through the transmission of signals over networks of radio towers. The
signal is transmitted through an antenna into the wire line network. Other
wireless ser vices include beeper and paging services. Because wireless devices
require no wire line connection, they are popular with customers who need to
communicate as they travel, residents of areas with inadequate wire line service, and
those who simply desire the convenience of portable communications.
Source: https://ptcl.com.pk/Info/about us
5
establishment of an independent regulatory regime. The provisions of the Ordinance
were lent permanence in October 1996 through Pakistan Telecommunication
(Reorganization) Act. The same year, Pakistan Telecommunication Company Limited
was for med and listed on all stock exchanges of Pakistan
Source: https://ptcl.com.pk/Info/aboutus
Source: https://ptcl.com.pk/Info/aboutus
2.2Vision
Source: https://ptcl.com.pk/Info/aboutus/vision
2.3 Mission
Source: https://ptcl.com.pk/Info/aboutus/mission
CORE VALUES
Professional Integrity
Teamwork
Customer Satisfaction
Loyalty to the Company
STATEMENT OF ETHICS
Source: https://ptcl.com.pk/Info/aboutus/corevalues
7
The major focus of attention is to improve and expand the services, minimize the
faults and provide communication facilities to rural areas. It is also one of the major
objectives of management that the company should not improve its performance but
also encourage the private sector to enter the Tele business. The company has entered
the domain of free market economy, which necessitates the liberal management
policies and private sector.
The following basic policy steps have been taken to meet the objectives laid in PTCL
Act to expand and operate telecommunication services in the country. The main
objective of any company is to earn the profit and minimize expenses by winning
goodwill in the market
Source: https://ptcl.com.pk/Info/aboutus/corevalues
2.6 Features
Pakistan Telecommunication Company Limited (PTCL) is the primary provider of
Telecommunication services in Pakistan. The range of services include basic
telephony, telegraph, fax, telex, Public data, Internet, E-mail, ISDN(Integrated
Services Digital Network),Universal Access Numbers(UAN), another value-added
services.
Pakistan Telecommunication Company Limited is a professionally managed company
and has initiated measures, with active support of the Federal Government, to
inculcate a corporate culture that benefits company. Pakistan Telecommunication
Company Limited believes that it has an inherent potential that it can exploit to
emerge as an important and active business entity. Pakistan Telecommunication
Company Limited has some basic strength and the potential that needs to be exploited
into real business opportunities. The Directors of the Company feel that a firm and
unwavering commitment towards provision of a complete range of market driven
telecommunication services to its customers using state of the art technology proven
products and a customer care approach is essential in a rapidly expanding telecom
market. The radical change from a monolith state controlled culture to a open market
competitive environment. The customer is becoming and more conscious of the value
8
of telecom services in an improving business environment.
The advent of digital systems, increasing application of computer technologies and
development of wide-band systems has generated new customer needs. Innovative
products and services such as cellular mobile, high-speed data, Internet etc are much
in demand. The current decade has proved to be the period of sector restructuring and
growth globally. To keep pace with the changes and to meet the emerging new
demands, Pakistan Telecommunication Company Limited has adjusted its programs to
meet the requirements of the market. Traditional telecom monopolies like Pakistan
Telecommunication Company Limited need to explore new avenues of technology
and financing to accomplish a quantum leap in growth and bridge the gap between
demand and supply, still remaining financially viable. The Company has taken
initiatives and a change is gradually becoming visible through expanded capacity and
increasing revenue.
Pakistan Telecommunication Company Limited has taken decisions to cope with the
competition within the next years. The initiatives taken resulted in the establishment
of 100% Pakistan Telecommunication Company Limited owned subsidiaries like Pak
Telecom Mobile Limited.Paknet and Pak Telecom Pay Phone services limited. These
new entities shall provide cellular mobile information technology, Internet, payphone,
prepaid calling cards and other range of services, Pakistan Telecommunication
Company Limited made a conscious decision to enter the cellular business as it has
tremendous potential and an accelerated annual growth of about 60%which is likely
to continue for many years.
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partners. PTCL has successfully entered into arrangements with foreign and local
telecom companies and has signed three contracts prepaid calling card service to
promote international traffic.
Source: https://ptcl.com.pk/Info/aboutus/companyprofile
Source: https://www.ptcl.com.pk/Financials/PTCL-Annual-Report-2017
10
An Organizational Structure clarify the roles of personnel of an Organization and to
determine who has to do what task, which is responsible for what, objectives to be
achieved, who is to report to whom and to remove the obstacles for performance
caused by confusion and uncertainty of job assignment as well as to make easy
decision- making and communication networks reflecting and supporting organization
objectives.
The head of Pakistan Telecommunication Company Limited is called “President”.
Then come the SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance),
SEVP (Operations), SEVP (Technical), and SEVP (Human Resource Management),
SEVP (Marketing & Business Development). Then there is a chain of Executive Vice
Presidents (EVPs) like EVP (Finance Central), EVP (Marketing), EVP (HR Central),
EVP (Accounts), EVP (Operation), EVP (Information Technology, Training &
Research), and EVP (Revenue). All these are appointed at Pakistan
Telecommunication Company, Headquarters at G-8/4, Islamabad. Apart from these
EVP, there are also EVP (Operation), EVP (HR) etc who are heading the other
regions of PTCL in major cities country wide. Then there are Chief Engineers and
General Managers at H/Qs who report to their relevant EVP. Then there are Senior
Managers, Deputy Directors, Assistant Directors, Account Officers, Assistant
Account Officers, Financial Analysts, Marketing Managers, Computer Programmers,
and IT Specialists etc. There are also Regional Heads (General Managers) to head
PTCL Regions then come the Senior Managers (Operations), Senior Engineers
(Operations), Engineers to look after the telecom system of Regions. There are also
Senior Managers Finance, Account Officers and Accountants to Handle Regional
account and billing matters. Manager HR & his staff are responsible to take care of
Personnel affairs at Regional Level. In non-gazette staff there are Engineering
Supervisors Operations /Switching Power plant /Optical Fiber system/M.W Media,
Account Assistants, Stenographers, Assistants, Key Punch Operators, Telecom
Technicians, Upper Division Clerks, Lower Division Clerks, Line Men, Wire Men,
Drivers, Exchange Cleaners, NaibQasids and Peons etc. All the staff is recruited by
the HR Department headed by SEVP HR. The HR experts are responsible for hiring
& to further streamline its recruitment process
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2.8 BOARD OF DIRECTORS
It is the highest body of PTCL, which has been rested the function of policy
formulation. The directors appointed shall not be less than seven (7) in numbers.
(Presently it has 10 members). There is general body meeting once a year of all the
shareholders to elect the members of board of directors. A director elected shall hold
office for a period of three years unless the earlier resigns, becomes disqualified from
being a director or otherwise ceases to hold office. A retiring director shall be eligible
for re-election.
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Mr. Khalifa Al Shamsi
Source: https://ptcl.com.pk/Home/BoardofDirectors?linkId=109
PTCL wishes you Eid Mubarak in advance and brings ultimate Eidi for your kids!
Enjoy e-junior cartoons & TV programs absolutely FREE from 23rd June till 22nd
July 2017 on Smart TV and Smart TV App.
PTCL Smart TV is Pakistan’s pioneer IPTV service, offering viewers high quality
television with a range of exciting features designed to inform and entertain.
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The service currently offers 100+ live TV channels and over 2000 hours of
entertainment content through its Video on Demand service available in 150 cities.
PTCL Smart TV delivers television programs to households via broadband connection
and requires a subscription and a set-top box. However, users without broadband can
buy PTCL Smart TV on its own.
Advantages
Source: https://ptcl.com.pk/Info/Company-Profile
Pricing
Smart Pack
Smart TV bundled with 256k
(new Rs. 749 per month
unlimited broadband
customers)
Smart Pack
Smart TV bundled with 256k Rs. 749 per month + one time
(existing
unlimited broadband downgrade charge of Rs. 500
customers)
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Smart TV on
Smart TV without broadband Rs. 699 per month
its own
a). VOD is priced at Rs 25 per movie for 48 Hours. Customers can subscribe to a
movie at Rs 25 and can watch/re-watch that movie multiple times within the
next 48 Hours.*
b). Customers can buy 30 movies bundle for a fixed price of Rs.299 per month**.
c). Customers can also choose between 10 Movies Bundle at a price of Rs.149 , 15
Movies Bundle at a price of Rs. 199 per month, e-junior for a price of 299/month,
ICLFIX for a price of 149/month and Extreme Sports at a price of 299/month.
*Package option ‘a’ will be readily available on all existing and new Smart TV
Connections with subscription.
**Package option ‘b’ can be activated by calling at the PTCL contact center at 0800 8
0800.
Source: https://ptcl.com.pk/Info/Company-Profile
PTCL customers can now provide uninterrupted services to their clients without
undertaking large scale investment in infrastructure or developing expertise in their
own network.
PTCL White Label Services are focused on speed and simplicity at minimal capex.
This enables our customers to offer their own branded WLL, DSL etc to customers
nationally, together with an array of key support services.
2.9.3 Landline
PTCL landline has always been a part of family and providing services from
generations and it continues to be the primary choice of customers for making voice
16
calls for many decades. PTCL gives its customers highest quality at very affordable
rates along with attractive packages and Value Added Services to choose from.
PTCL offers many attractive packages like Freedom Package, International
Packages, Mobile Buckets & Double Up Unlimited (double play services)
Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110
PTCL EVO Wireless Broadband is Pakistan’s fastest wireless internet which offers its
customers – “superior high-speed wireless internet experience”. EVO Wireless
Broadband is enabling the wireless broadband revolution in Pakistan like never
before. PTCL EVO has revolutionized the way people connect to the internet. PTCL
EVO gives its customers the advantage of seamless internet connectivity across
Pakistan. EVO coverage is in over 350 cities, whereas EVO customers can also enjoy
CDMA-1X data rates of up to 153.6 Kbps at more than 1000 destinations across
Pakistan.
PTCL Introduced EVO Nitro in Pakistan - “The World’s first & most cutting-edge
EV-DO Rev.B commercial network”. PTCL is the first operator in the world to
commercially launch EV-DO Rev.B products, which offer blazing fast speeds of up to
9.3 MBPS.
EVO Nitro is all set to meet the next-generation’s need for ultimate speed & superior
performance. It is the next step in Evolution of the Wireless Broadband Revolution!
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that lets you surf, talk, tweet & do a lot more simultaneously on-the-go in more than
350 cities nationwide
PTCL has introduced pocket-sized EVO 3.1 mbps & Nitro 9.3mbps Wi-Fi Clouds that
enable its customers to create instant Wi-Fi hotspot. Users can connect up to 5 Wi-Fi
gadgets simultaneously, use these as external storage device via the provided Micro
SD Card slot, and also use these to charge other devices. Both the Clouds have a
super-charged built-in battery that lasts up to 12 hours.
Introducing Pakistan’s first Wireless Broadband USB modem with built-in Wi-Fi
hotspot - EVO Wingle is all out & about! The most talked about futuristic Wi-Fi tool
that lets you effortlessly connect multiple Wi-Fi gadgets simultaneously at Hyper
Speeds of up to 9.3 Mbps* in over 250 cities, and auto switch over to EVO 3.1 Mbps
speeds in over 350 cities. It lets you connect ’n’ share effortlessly through any
external USB power adapter.
Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110
The largest and the fastest growing Broadband service in Pakistan, PTCL Broadband
is making great positive changes in the lives of millions of people living in the
country. Serving over 1.3 million satisfied customers in over 2000 cities and towns
across Pakistan, PTCL has brought revolutionary efficiency and effectiveness in all
segments of the society, be it the rural or the urban. Since its launch on 19th May
2007, all PTCL Broadband packages are designed for users to experience high-speed
internet access with unmatched reliability, affordability and connectivity all at the
same time.
PTCL holds credit for pioneering and steadily revolutionizing the broadband culture in
Pakistan. Till about a decade ago, there was very little awareness in the country about
broadband & high speed internet services. Today, PTCL has made broadband technology
affordable by lowering the barriers to entry, by geographically bringing the service
within the reach of a common user across Pakistan, and by continuous improvements in
customer care for offered services. With Broadband Pakistan, all our
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subscribers get the chance to experience unlimited downloads, high speed
browsing, uninterrupted video streaming, improved gaming experience, and access
to rich HD multimedia resources over the internet.
Unique offers that make PTCL Broadband unmatchable are special packages for the
student segment, FREE Wi-Fi modem, as well as FREE dial up service for Broadband
customers. PTCL also offers FREE personalized e-mail accounts exclusively for all its
broadband users. Offering the nation’s most popular Broadband service,
For a new Broadband connection, you can simply dial 0800 8 0800 or visit
www.ptcl.com.pk
Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110
PTCL entered the media sector on 14th August 2008, by launching a digital
interactive television service for the first time in Pakistan. PTCL brought Pakistan in
the list of a few countries across the globe that offer this state of the art interactive TV
service to its subscribers. PTCL SMART TV service using its state of the art
Broadband network employs the IPTV (Internet Protocol TV) technology.
Branded as ‘PTCL Smart TV’, the service includes Interactive Television, Broadband and
voice telephony all at the same time on PTCL’s telephone line. Besides offering the
highest digital quality TV picture, the most revolutionary section of this offering is the
ability to watch programs of previous four days; this feature is called catch up TV. The
PVR feature allows viewers to record their favorite programs that are to be aired in the
next 4 days and watch these programs at their convenience. Similarly users can also
‘rewind’ and ‘pause’ live TV channels through TSTV ( Time Shift Television) feature,
the ability to block / unblock any TV channel for parental lock and the ability to search
through video on demand content. Currently PTCL Smart TV offers its
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viewers 140 + live channels and over 2000 hours of content through its Video- on
Demand service’. The service is available in more than 150 cities across Pakistan and
PTCL is planning to expand to all remaining cities and towns across the country
during the coming years
Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110
2.9.7 V-Fone
PTCL also continues to be the largest CDMA operator in the country with
approximately 1.4 million Vfone customers. It gives the liberty of payment in both
prepaid and postpaid options.
It offers fixed wireless telephone for your homes & business. With CDMA2000 1X
technology, ours is the largest WLL network with a capacity of 2.6M, covering over
10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet
access (153.6kbps), SMS and for EVDO Broadband.
Vfone can be bought from our OSS (One Stop Shops) or from any PTCL franchisee.
To get further details about your nearest PTCL OSS/franchisee please dial 1236.
Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110
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SEA-ME-WE-3 (South East Asia - Middle East and Western Europe - 3)
Sea-Me-We 3 is one of the longest cables systems in the world with a total length of
39,000 km. It includes 39 landing points in 33 countries and 4 continents from
Western Europe (including Germany, England and France) to the Far East (including
China, Japan and Singapore) and to Australia. The use of Wavelength Division
Multiplexing greatly increases the capacity of the network allowing high quality
transmission all the way over distances as far as from Germany to Australia.
PTCL is a member of IMEWE Cable Consortium with its landing station at Karachi.
IMEWE Submarine Cable is a Tera bit capacity submarine cable system connecting
India to Western Europe through Middle East. The Cable system is 12,000 km long
with 10 landing stations in 8 countries. The cable system is a three-fiber pair DWDM
system with 128 wavelengths per Fiber pair. IMEWE cable system plays a pivotal role
in meeting the exponential growth of bandwidth in the region.
Satellite Communication
PTCL has Intelsat Standard Earth Stations near Karachi and Islamabad. These
installations provide the diversity for International voice connectivity and also work
21
as Hub for domestic satellite users. There are four Intelsat Standard B Earth Stations
at Islamabad, Gilgit, Skardu and Gawadar.
Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110
22
Chapter No.3
Product Introduction
23
0800-Toll Free Universal Access Number (UAN)
PTCL Calling Cards Universal Internet Number (UIN)
Domestic And International ISDN PRI
Premium Rate Service - 0900 TelePlus (ISDN/BRI)
Virtual Private Network Local
Banks Insurance
Newspapers Credit Card
Airlines Companies Travel
Hotels Courier Services
Shipping Lines Utility Services
Consumer Products Companies Trading Companies
Stock Brokers
3.2 V-fone
It is a product which is wireless. We can use anywhere in Pakistan. Internet and web
browsing is also its feature. It is under CDMA.V-fone also providing the internet
facility it works such a ptcl landline function.
3.3 Ufone
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Ufone is now considered to be one of the most active, aggressive and innovative
players in the mobile sector of Pakistan.
The growth of the cellular industry is a direct result of the successful implementation
of the telecom deregulation and cellular mobile policy by the Ministry of IT and
telecommunications (MOIT&T) and the support, guidance and timely enforcement of
regulatory process by the Pakistan Telecommunication Authority (PTA).
3.3.2 Performance
The customer focus and best offering has allowed Ufone to build a subscriber
base of over 20 million in less than a decade. Ufone has network coverage in 10,000
locations and across all major highways of Pakistan.
Ufone currently caters for International Roaming to more than 288 live operators in
more than 160 countries. Ufone also offers Pakistan’s largest GPRS & BlackBerry
Roaming coverage available with more than 200 Live Operators across 122
countries. More recently, Ufone has become a focused and intensive leader in VAS,
constantly introducing innovative services, which have been the first of their kind in
the Pakistani cellular industry.
3.3.3 Brand
While keeping its tradition of being the trend setter in the industry, Ufone changed the
image of mobile phones from a luxury only affordable by the elite, to a necessity
affordable by the common man.
Since its inception, Ufone has positioned its brand for masses. In keeping with the
upcoming competition and market dynamics, Ufone increased its focus on the youth
segment(which comprises 50% of the population), with the Prepay brand. By
designing market focused products, Ufone’s brand team launched aggressive
campaigns, which further increased the brandequity. The new brand image gained
25
huge popularity amongst the targeted market. A recent marketing survey conducted
by a prominent marketing research company showed that Ufone has considerably
increased its brand visibility and image. Ufone’s Prepay brand is now considered to
be one of the most favored brands by the youth market and is followed by other
mobile operators launching their respective brands for the youth market.
Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a
company committed to excellence. Under the new vision of Etisalat and with the
support and collaboration of its employees and vendors, Ufone aspires to be the best
in the market by offering customer focused products and a quality service and sales
network.Ufone is a subsidry of PTCL. It works under PTA and it is a GSM featured
product. Ufone is a leading GSM service provider in Pakistan now days.
26
3.4 PTCL Broadband
It is providing high speed internet browsing. DSL is now in top internet speed. Ptcl
earns large part of income from this service. All other internet provider company
work under the ptcl agreement. PTCL also provide Internet service at different Hour
rates. With this service one can connect to Internet from any PTCL telephone line.
PTCL has started a digital interactive television service for the first time in Pakistan
in 2008. By using the IPTV (Internet Protocol TV) Technology. Over 150 live
channels are
available to see with good picture quality.
PTCL brought Pakistan into the list of those few countries that are providing the
interactive TV services to their customer.
PTCL EVO is Pakistan‟s fastest 3G wireless broadband internet which offers its
customers, “Superior 3G Internet experience”. EVO wireless is operational in over
250 cities nationwide, and enabling a broadband wireless revolution in Pakistan.
EVO Wingle is backed by PTCL EVDO Rev B network offering blazing fast hyper
speeds of up to 9.3Mbps in over 200 cities across the country & auto switch-over to
3.1 Mbps in more than 250 cities.EVOWingle works well with any USB power
source. So plug in your Wingle into a USB port in your car’s stereo system or
cigarette lighter charger, and get connected to 9.3Mbps speeds on-the-go without the
need of a laptop. Or plug-in the device into any USB power charger to get connected
instantly.
27
3.8 Evo Charji
Being the fastest network available means download speeds four to five times faster
than 3G networks, enabling faster downloads, instantaneous uploads, real time
gaming, extremely fast movie downloads and speeds that literally make you stream
like a dream. From surfing the web to watching movies, from getting social with
friends to sharing pics or playing games; Charji EVO gives you the power to do it all
instantly on the country’s fastest wireless network.
Mobilink
Telenor
Warid Tel
Zong
Mobilink
Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having
more than users base which is the 36% of total cellular industry of Pakistan. Mobilink
is basically competing Ufone which is subsidiaries of PTCL.
Telenor
Telenor is another cell phone company it have subscribers which is 20 % of total
mobile industry.
28
Warid Tel
Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more than
15 million subscribers which is 17% of Pakistan mobile industry.
The digital telephone facilities are available in all the digital exchange of Pakistan.
There are following digital telephone facilities with any package of seven facilities
with very normal price excluding the secret coding and detailed printed bill (which
are without any cost)., ,
Don’t Disturb
Caller-ID
Call Forwarding
Wake Up Call
Call waiting
Call Transfer
Call Transfer on Busy
Call Transfer on no Reply
Conference Call
Hot Line.
Abbreviated dialing.
Call Barring.
Other features of fixed line are
Phone n Net Phone n Net:
Digital phone connects from any PTCL landline number. Its a dialup service.
It is charged on per minute basis, the charges are billed into normal telephone bill.
This service is available to corporate customers and Call Centers for their
customers’ convenience.
131 numbering scheme for Internet Service Providers, represents exclusive code
assigned to each ISP. Functioning just like UAN-0800 toll-free service, UIN involves
allocation of numbers to individual ISPs who are licensed by PTA.This service
functions under a single-metering billing system with the promise of rich dividends
in terms of customer care. The benefit of the service of course, goes to the end-users,
who happen to be any ISP customers. Once subscribed, the service means your
customers pay for a single call irrespective of its duration.
30
3.15 BILL PAYMENT FACILITIES
PTCL is in the process of offering convenient bill payment solutions to its customers.
Steps taken in this direction so far include:
VPN SERVICE
VPN service provides a logical private network for a company by using the PSTN
resources. The service allows a private enterprise to have a private network using
public network resources, without requiring the installation of dedicated network
resources.
31
Payments
Restoration
Selling of Directory
OTHER SERVICES
Broadband Pakistan (DSL)
Frequently Ask Questions
Pakistan Package Payphone
Vfone
UIN (Universal Internet Number)
Infrastructure and operational base for services like Fee-phone, Home Country
Direct (HCD) and Televoting is complete and these services will be
operational very soon.
NETWORK GROWTH
During the year 2003-2004 there has been a 7% increase in installed capacity and a
12% increase in working connections, also during the year, 106 new NWD stations
were added and the optical fiber network increased from 6,879 km to 7,959 km. the
overall fixed line teledensity increased from 2.8% to 3.0%.
32
More than 4000 International Circuits were added in the International Gateway
exchanges after bilateral agreements were signed with the existing and new
international carriers. Two new carriers, Primus and IDT, from USA signed
International Service Agreements during the year.
International traffic exceeded the set target during the year; incoming traffic grew
by 30.3% and outgoing by 32.8%. The aggregate growth for the year was 30.5%.
ORGANIZATIONAL ELEMENTS
There are at least three basic concepts associated with formal organizational
structure. They are: Division of labor, Departmentation, And Span of control.
I will try to explain the organizational structure of PTCL with supervene to the above
there concepts and deviously it will comprise of much more.
33
emphasis is being given to the formulation of clear policies in the areas of training,
recruitment, transfers/postings, compensation etc
The ongoing salient HR activities
are: Completion new service rules
Development of new of HR Information Systems
Formation of job descriptions
Rightsizing
Compensation management
Performance appraisal system
Performance standards
Training and Development
Organizational Development
these offices can easily be connected to the network. PTCL has both types of network
i.e.; Local Area Network (LAN) and Wide Area Network (WAN) available for data
base management.
Product Launches
Surveys
Public relation
Regardless of the type, finance is one of the very basic and most important activities of
any business. The finance department plays the most critical role in determining the long-
term objectives and evaluating the feasibility of the business. As one of the four basic
functional heads of the Company the Member Finance generally reports directly to the
Chairman. The financial activities of PTCL have been split up into three major branches
Finance, Accounts and Project Finance with a separate head of each.
Finance Wing
On the basis of different functions performed by PTCL finance department, the
division is divided into three sub departments
35
Revenue department.
Accounts department.
Finance department
Evp (Finance) heads this department. The responsibilities of the General Manager
Finance usually fall in the areas of financial management, preparation of annual
budgets, determining the revenue targets for the year, investor and banker relations
and controlling the Directors Revenue in all the regions.
Revenue Department
The Revenue Department is responsible for setting a target of revenue being achieved
during the year, making action to achieve the desired target and collecting of revenue
earned.
This branch is also concerned with the issue that may affect the revenue in one or the
other way.
Domestic Revenue
International Revenue
Corporate Revenue
Domestic Revenue:
The first source of domestic revenue is domestic billing that includes line rent and
local call charges etc. secondly domestic revenue is earned through renting and
leasing of exchanges.
International Revenue:
There are two International Gateway Exchange (I.G.E) of PTCL, one in Rawalpindi
and other in Karachi. An agreement, total Accounting Rate countries and currency
used for this purpose is special Drawing Rights (S.D.R). International revenue is
collected in NASTRO account of New York (USA) from all over the world.
Trend of International Revenue:-
Five years back, international revenue was one third of total revenue of PTCL. With
the passage of time it is decreasing and this decrease is alarmic situation for PTCL's
management.
An analysis is conducted to overcome the problem. In this analysis first reason for
decreasing trend of international revenue are found. In the second stop suggestions are
given to resolve the problem.
Reasons for Decreasing Trend of International Revenue:
36
International call rates (TAR) are decreasing.
International traffic is increasing.
Use of internet
Use of SMS
How to over come the problem?
it is analyzed that operator Assisted callas have been increased @ 35 % and @ 10% in
Islamabad and Karachi respectively during last three years. The increase outward
calls are the effect of reduction ids calling rate (tariff). However the increase in calls
(tariff) is not sufficient to cover the decrease in corresponding revenue. Resultantly,
decline @ 30% is observed in the revenue lost for five years.
Based on existing policy, the incentive cost has been increased from Rs. 3.5 Million
in the financial year 2006-2007.
Keeping in view the above observation, it is proposed that the incentive policy may be
modified to address the stimulant force of all variables that cause effect in calls, tariff
and Revenue.
The incentive benchmark level may be enhanced from present 60 calls to 80 calls.
The incentive rate may be reduced from Rs. 31 calls to Rs. 21 calls.
This would compensate the effect of increased traffic and increased cost for
incentives respectively.
Corporate Revenue:
Other than domestic and international revenue, PTCL is also earning corporate
revenue through:
1. PTML-Pakistan Telecom Mobile Limited (Ufone).
2. VAS-PTCL calling cards etc.
3. CTI-Telephone industries of Pakistan
4. WLL-PTCL Pakistan
5. Financial Investments are contributing a major role towards corporate
revenue.
Accounts Department:
The accounts department is responsible for all accounting, record of keeping,
publication of accounts, audit, employee’s compensation, inventories recording, Fixed
Assets accounting, complete accounting system and internal control, pensions and
direct taxation.
37
Functions and Duties of Accounts Department:-
Accounting includes accounting system and Procedure.
Ongoing integration of the entire system.
Preparation of financial records and accounts.
Preparation and publication of annual financial statement.
Preparation and disbursement of salaries.
Management of pension, insurance and benevolent scheme.
Management and control of PTCL store accounts.
Implementation of sound internal checks and control on expenditures.
Finalization of statutory audit.
Compliance with the direct tax requirement.
Preparation of management accounts.
Co-ordination with fiscal authority on financial matters.
Information incompliance with the legislative of government requirements.
Appraisal and participation in approval of procurement proposals.
Finance Department
Finance Department is responsible for the budgeting, planning and transaction
relating to income and revenue, expenses, pricing control funds and treasury measure
and direct taxation.
38
authority.
The settlement on international telecommunication accounts.
Settlement of total accounting rates.
Complains with indirect tax and other levies.
Preparation of management of accounts.
Co-ordination with Government Authorities on financial matters and related
issues
FINANCE WING
Every large organization structure contains three levels of management and so is the
case with PTCL’s organization chart. It also includes those levels namely:
Strategic Level, Business Level and finally Functional Level
These three levels of management again serve three basic and important activities.
These are:
The strategy formulation and decision-making
Implementation of the strategies and decisions.
Execution of them.
The PTCL’s strategic level, which consists of the president and his ultimate four
subordinates on the top, perform the function of strategic formulation and decision-
making with the assistance of other units.
PTCL’s business level consists of the six supporting expert’s heads and their 12
subordinates. They perform the implementation function.
Whereas the functional level, consisting of subordinate units and employees, executes
the strategies and decisions taken by the strategies level and assigned and
communicated to them by the business level.
Since I was attached to the different section of Finance under EVP (Finance). So my
major area of learning in PTCL’s Finance Department was
as:…………………………………………………………………….
The Asset department will ensure that all the Asset acquisitions
have been updated in Fixed Asset Register and corresponding
Depreciation has been correctly simulated after posting any
unplanned Depreciation (if needed). Asset History Sheet should
carefully be reviewed to reconcile the Book Value matched with
the Financial Records after due incorporation of Audit adjustments.
The SM Fixed Assets and CWIP Control on confirmation from the
Manager Fixed Assets will close the Fiscal period of Asset
Management in SAP.
Prior to generating all financial reports for a particular month, some activities
must be performed to close the posting period.
Month-end activities cover:
1. General period end activities
Maintain postings periods / fiscal year for account type ‘+” i.e. all account
types
Maintain postings periods / fiscal year for account type ‘M’ i.e. materials
Maintain exchange rate tables (daily basis)
2. Asset Accounting (AA) period end closing activities
Settlement of Asset under Construction (AUC) to Fixed Assets
Depreciation posting run
Maintain postings periods / fiscal year for account type ‘A’ i.e. assets.
3. Besides the above month-end activities, below are some additional
processes for the year-end activities, which must be carried out in the
system:
Carry forward AP balance
Carry forward AR balance
Carry forward GL balance
43
Calculate unrealized gain/loss on foreign currency
Audit Adjustment – posting to period 13-16
Fiscal year change for Asset Accounting
Fiscal year close for Asset Accounting
Fixed Assets Reports
The standard comprehensive Reports in addition to the Fixed Asset Information
System are:
AW01N – Asset Explorer
Fixed Asset Register, list the transactional detail of Assets for:
Planned Values
Posted Values
Depreciation Forecast
Depreciation Parameters
AR 02 – Asset History Report
Fixed Assets History Report showing:
Asset accumulated balances with opening balance reconciliation
Asset Acquisitions
Asset Retirements
Asset Transfers
Posted Depreciation
Unplanned (Manual) Depreciation
Accumulated Depreciation
Depreciation Simulation
Evaluation Group level
Depreciation
Every asset transaction in the Asset Accounting (FI-AA) component immediately
causes a change to the forecasted depreciation. However, it does not immediately
cause an update of the depreciation and value adjustment accounts for the balance
sheet and profit and loss statements. The planned depreciation is posted to the general
ledger when the periodic depreciation posting run is executed. This posting run uses a
batch input session to post the planned depreciation for each posting level for each
individual asset Monthly depreciation program will be executed in SAP to post
depreciation.
44
For intangible assets, amortization will be executed in the same manner
as that of depreciation for the specified period of time.
Earlier to the periodic Depreciation run, Asset register will be updated
with un posted acquisition during the period for which depreciation run
is to be executed
Unplanned (Manual) Depreciation will be posted to reconcile the
depreciation difference between the system calculated depreciation and
manual records
Execute a repeat Depreciation run against any last period postings
3.20 My Assignments:
Assets Coding:
Coding, one of the most important activity at NTC that I performed in the office of
Director Data Administrator.
I managed and updated codes of accounts for data reporting in Capital
Expenditures (CAPEX) and Operational Expenditures (OPEX), for various assets
of PTCL. Its main advantage is that, through this we can not make separate
summary for each asset. Now we can easily dig out the exit and accurate estimates
of the particular asset.
Correct Coding tends to compile correct results. Some additions in assets record,
code were also reformed and added in Databases. I managed the restructuring of
accounts titles Zone wise and under Divisions to make it error free.
MIS Management
I also worked in Oracle-I environment designed as MIS for DDO entries.
To correct the zonal entries receive, record and then forwarding to the Head Office
Lahore. I updated various vouchers and we worked and discussed in removal of
Errors.
45
Server Room Assignments
My exciting assignment was to work at server room controlling all records over
the country.
I installed new server Softwares, learned to work in server
windows, Managed system access and Security measures.
Complaint Operator
Since I worked in Server room, I was lucky to have an experience of receiving
complaints, memos and sometimes appreciation calls by DDO’s from the
whole country.
I recorded and forwarded the complaints and we worked to solve out problem
to satisfy the complaint.
Maintaining Of File And Records
Every day there has been preliminary file work from initial nothing till the
final presentation of the whole scenario. Each task has to be filed.
Writing Memos,E-Mails,Printing
I wrote many applications, memos, emails for various purpose defined by my
supervisors. I forwarded mails, received and managed emails and also made important
print outs for official use.
Financial Statements Analysis
I was given personal assignments by supervisor to analyze the financial reports as per
stated in Annual reports, as well checking of variances in monthly expenditures as
per allocated budget.
Assigment Of Budget Analysis
I was given assignment to study previous Budget of OPEX and update entries as per
new parameters for input forms.
46
Chapter No-4
Financial Analysis
4.1 Introduction
Balance Sheet
2017 2016
RS 000 RS 000
Equity
Revenue reserves
47
Insurance reserve 2621288 2416078
32013099 35218360
83013099 86218360
Liabilities
Non-Current liabilities
37953237 47345231
Current Liabilities
Assets
Non-Current Assets
Fixed Assets
48
97112272 97451106
107280842 107785645
Current Assets
72828406 72592129
49
4.3 Income statement
2017 2016
RS 000 RS 000
160205 1,605,787
Other comprehensive loss for the year – net of tax 160205 1,934,826
50
4.4 Horizontal Analysis of Balance Sheet
Equity
Revenue reserves
Liabilities
Non-Current liabilities
Current Liabilities
51
Trade & Other Payables 59142912 46,814183 26%
Assets
Non-Current Assets
Fixed Assets
Current Assets
52
Prepayments and other recievables 8279236 4982082 66%
4.4.1 Interpretation
When conducting a horizontal analysis, it is useful to conduct the analysis for all of
the financial statements at the same time, so that you can see the complete impact of
operational results on a company's financial condition over the review period. For
example, in the two examples below, the income statement analysis shows a company
having an excellent second year, but the related balance sheet analysis shows that it is
having trouble funding growth, given the decline in cash, increase in accounts
payable, and increase in debt.
The result of horizontal analysis of PTCL’s Balance sheet are described below
The assets of the PTCL have been growing very fast since its inception. This growth is the
result of the massive expansion policy the management has been following ever since the
inception of PTCL. The Total Assets decreased by -0.14 %.
Stores, Spares and loose tools-6.7 while Trade Debts decreased by-0.53, Loans &
Advances decreased by-57, Investment in finance Lease increased by 1.4, Accured
interest increased by 80.9 which is a good sign for PTCL, Recoverable from tax
53
Authoroties decreased -1, Recieveable from Government of Pakistan is equal for both
years i.e 0%
As regards the liability section of the balance sheet chief liability is its deposits it
generates from its customer..As Shown in the Annual reports of previous years.
54
4.5 Vertical Analysis of Balance Sheet
RS 000 RS 000
Liabilities
Non-Current liabilities
Assets
Non-Current Assets
Fixed Assets
Current Assets
55
Investment in finance Lease 53030 0.7 52255 0.08
Total current
Assets 72828406 100% 72592129 100%
4.5.1 Interpretation
A type of financial analysis involving income statements and balance sheets. All
income statement amounts are divided by the amount of net sales so that the income
statement figures will become percentages of net sales. All balance sheet amounts are
divided by total assets so that the balance sheet figures will become percentages of
total assets.After analyzing the Balance Sheet, we can see
Long term security Deposits i.e 552,122 were 1.1 in 2016 while in 2017 are 553049
which is 1.4%
Deferred income tax are 5,754,874 in 2016 which is 12.7 % in 2017 it is 4737260
which is 12.4%
56
Horizontal Analysis of Income Statement
2017 2016 2017 vs 2016
Interpretation
The result of horizontal analysis of PTCL’s income statements described below
decreased -91 %.
This analysis shows that the total comprehensive income increased 2.4% than the
previous year.
Analysts use the income statement for data to calculate financial ratios such as return
on equity (ROE), return on assets (ROA), gross profit, operating profit, earnings
before interest and taxes (EBIT), and earnings before interest taxes and amortization
(EBITDA). The income statement is often presented in a common-sized format,
which provides each line item on the income statement as a percent of sales. In this
way, analysts can easily see which expenses make up the largest portion of sales.
57
Analysts also use the income statement to compare year-over-year (YOY) and
quarter-over-quarter (QOQ) performance. The income statement typically provides
two to three years of historical data for comparison.
The income statement is divided into two parts: operating and non-operating. The
operating portion of the income statement discloses information about revenues and
expenses that are a direct result of regular business operations. For example, if a
business creates sports equipment, it should make money through the sale and/or
production of sports equipment. The non-operating section discloses revenue and
expense information about activities that are not directly tied to a company's regular
operations. Continuing with the same example, if the sports company sells real estate
and investment securities, the gain from the sale is listed in the non-operating items
section.
58
Vertical Analysis of Income Statement
Interpretation
Vertical analysis is a method of financial statement analysis in which each entry for
each of the three major categories of accounts, or assets, liabilities and equities, in a
balance sheet is represented as a proportion of the total account. Vertical analysis is
also used across other financial statements as a percentage measure.
The income statement is divided into two parts: operating and non-operating. The
operating portion of the income statement discloses information about revenues and
expenses that are a direct result of regular business operations. For example, if a
business creates sports equipment, it should make money through the sale and/or
production of sports equipment. The non-operating section discloses revenue and
expense information about activities that are not directly tied to a company's regular
operations. Continuing with the same example, if the sports company sells real estate
and investment securities, the gain from the sale is listed in the non-operating items
section.
59
operating and non-operating activities. It also shows the net profit or loss incurred
over a specific accounting period.
That the profit for 2016 is 70% while in 2017 it increased to 80% and the other
comprehensive income in 2016 is 5% in 2017 it increased to 10 %
60
4.6 Ratio Analysis
Ratio simply means one number expressed in terms of another. A ratio is a statistical
yardstick by means of which relationship between two or various figures can be
compared or measured. It is defined as a systematic use of ration to interpret the
financial statements so that the strengths and weaknesses of a firm, as well as
historical performance and current financial condition, can be determined.
4.6.1 Liquidity
Ratio Current ratio
The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay
off its short-term liabilities with its current assets. The current ratio is an important
measure of liquidity because short-term liabilities are due within the next year.
This means that a company has a limited amount of time in order to raise the funds to
pay for these liabilities. Current assets like cash, cash equivalents, and marketable
securities can easily be converted into cash in the short term. This means that
companies with larger amounts of current assets will more easily be able to pay off
current liabilities when they become due without having to sell off long-term, revenue
generating assets.
Formula
The current ratio is calculated by dividing current assets by current liabilities. This
ratio is stated in numeric format rather than in decimal format. Here is the calculation:
Current Ratio
Current Assets 2016= Stores, spares 2940425+Trade debt14304039+loans and
advances1593099+investment52255+accrued interest12817 4+recoveries18179032 +
Receiveable from Govt.2164072+Prepayment4982082+short term investments
26038803 + cash & bank Balences2210148= 72592129
Current Libalities 2016= trade and other payables 46814183
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Receiveable from Govt.2164072+Prepayment 8279236+short term investments
24000000 + cash & bank Balences5902144= 72828406
Interpretation
Current ratio showed a huge increase in the year 2017 to 1.2% from the last year’s
0.15% which is a good sign for the organization
Net working capital is a liquidity calculation that measures a company’s ability to pay
off its current liabilities with current assets. This measurement is important to
management, vendors, and general creditors because it shows the firm’s short-term
liquidity as well as management’s ability to use its assets efficiently.
Much like the working capital ratio, the net working capital formula focuses on
current liabilities like trade debts, accounts payable, and vendor notes that must be
repaid in the current year. It only makes sense the vendors and creditors would like to
see how much current assets, assets that are expected to be converted into cash in the
current year, are available to pay for the liabilities that will become due in the coming
12 months.
If a company can’t meet its current obligations with current assets, it will be forced to
use it’s long-term assets, or income producing assets, to pay off its current
obligations. This can lead decreased operations, sales, and may even be an indicator
of more severe organizational and financial problems.
62
Formula
The net working capital formula is calculated by subtracting the current liabilities
from the current assets. Here is what the basic equation looks like.
Interpretation
The calculation of this ratio show that net working capital in 2016 was Rs. 25777946
while in 2017 it is Rs. 13685496.
The debt to equity ratio is a financial, liquidity ratio that compares a company's total
debt to total equity. The debt to equity ratio shows the percentage of company
financing that comes from creditors and investors. A higher debt to equity ratio
indicates that more creditor financing (bank loans) is used than investor financing
(shareholders).
Formula
The debt to equity ratio is calculated by dividing total liabilities by total equity. The
debt to equity ratio is considered a balance sheet ratio because all of the elements are
reported on the balance sheet.
63
YEARS TOTAL LIABITIES/TOTAL RESULT
EQUITY
2016 94159414/86218360 1.09%
2017 97096149/83013099 1.16%
Interpretation
Debt to equity ratio for the year 2016 is 1.09% while it increased in the current year
2017 to 1.16, due to constant increase in the liabilities
4.6.2Solvency Ratio
Debt Ratio
Debt ratio is a solvency ratio that measures a firm's total liabilities as a percentage of
its total assets. In a sense, the debt ratio shows a company's ability to pay off its
liabilities with its assets. In other words, this shows how many assets the company
must sell in order to pay off all of its liabilities.
This ratio measures the financial leverage of a company. Companies with higher
levels of liabilities compared with assets are considered highly leveraged and more
risky for lenders.
This helps investors and creditors analysis the overall debt burden on the company as
well as the firm's ability to pay off the debt in future, uncertain economic times.
Formula
The debt ratio is calculated by dividing total liabilities by total assets. Both of these
numbers can easily be found the balance sheet. Here is the calculation:
64
YEARS TOTAL LIABILITIES/ TOTAL RESULT
ASSETS
Interpretation
Debt ratio slightly decreased in 2017 as compare to 2016 it was 0.53% in 2016 while
in 2017 it decline to 0.52%
Equity Ratio
The equity ratio is an investment leverage or solvency ratio that measures the
amount of assets that are financed by owners' investments by comparing the total
equity in the company to the total assets.
The equity ratio highlights two important financial concepts of a solvent and
sustainable business. The first component shows how much of the total company
assets are owned outright by the investors. In other words, after all of the liabilities
are paid off, the investors will end up with the remaining assets.
The second component inversely shows how leveraged the company is with debt. The
equity ratio measures how much of a firm's assets were financed by investors. In other
words, this is the investors' stake in the company. This is what they are on the hook
for. The inverse of this calculation shows the amount of assets that were financed by
debt. Companies with higher equity ratios show new investors and creditors that
investors believe in the company and are willing to finance it with their investments.
Formula
The equity ratio is calculated by dividing total equity by total assets. Both of these
numbers truly include all of the accounts in that category. In other words, all of the
assets and equity reported on the balance sheet are included in the equity ratio
calculation.
65
YEARS TOTAL EQUITY/TOTAL RESULT
ASSETS
2016 86218360/180377774 0.47%
2017 83013099/180109248 0.46%
Interpretation
Equity ratio for the year 2016 is 0.47% and in 2017 it is 0.46% which means it slightly
decreased than the year 2016 in current year which is a good sign.
The return on assets ratio, often called the return on total assets, is a profitability ratio
that measures the net income produced by total assets during a period by comparing
net income to the average total assets. In other words, the return on assets ratio or
ROA measures how efficiently a company can manage its assets to produce profits
during a period.
Since company assets' sole purpose is to generate revenues and produce profits, this
ratio helps both management and investors see how well the company can convert its
investments in assets into profits. You can look at ROA as a return on investment for
the company since capital assets are often the biggest investment for most companies.
In this case, the company invests money into capital assets and the return is measured
in profits.
Formula
The return on assets ratio formula is calculated by dividing net income by average
total assets.
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YEARS NET INCOME / AVERAGE RESULT
TOTAL ASSETS
2016 6824769/180243511 0.03%
2017 6994739/180243511 0.03%
Average total assets = Current year assets + previous year Assets / 2
180109248+180377774/2 = 180243511
Interpretation
This ratio for both years 2016-2017 is same i.e 0.03%. which is not a good sign for
the firm it should always increase than the previous year
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Chapter No-5
SWOT ANALYSIS
5.1 STRENGTHS
Not been able to nurture its growth around customer services oriented strategy.
Internal organizational and business issues.
Monopolistic culture has further added to complexities.
Paknet, the internet service provider arm of PTCL customers to incur losses
due to poor management and lack of network optimization.
Ptcl-v, the fixed wireless phone service is poor.
68
Over employment & low productivity.
Slow decision making including external interferences.
Corporate culture akin to Government department.
5.3 OPPORTUNITIES
5.4Threats
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Chapter No-6
Conclusion & Recommendations
6.1 Conclusion
PTCL has laid an Optical Fibre Access Network in the major metropolitan centres of
Pakistan and local loop services have started to be modernized and upgraded from
copper to an optical network. On the Long Distance and International infrastructure
side, the capacity of two SEA-ME-WE submarine cable is being expanded to meet the
increasing demand of International traffic. Pakistan Telecommunication Corporation
(PTC) has established in December 1990, taking over operations and functions from
Pakistan Telephone and Telegraph Department under Pakistan Telecommunication
Corporation Act 1991. This coincided with the Government's competitive policy,
encouraging private sector participation and resulting in award of licenses for cellular,
card-operated payphones, paging and, lately, data communication services.
PTCL is a good Organization in the way that anybody can join it for his/ her long-
termcareer. Overall working environment is comfortable. Management of branch
cares a lot of its employees and considers them as the Asset of PTCL. Behavior of
senior executive of bank is very polite and they are caring about the individual’s
career and their growth. PTCL needs innovative service offerings — currently it
doesn’t even offer bundles or a single bill.
It is said that the best assets of a company go home to their family in the evening. Can
the culture of PTCL be changed to a performance and service-based organization?
According to the latest director’s report from PTCL the “organization is being
revamped”. Only time can tell the impact. However management is very demanding
about the targets but good reward at the achievement of assigned targets is awarded.
70
Employees at PTCL are quite efficient. Its employees have to bring their org
among the list of good. It also shows their loyalty, commitment to organization.
Employees are given the benefits like bonus, gratuity funds, loans, increments, and
medical. All the customers are entertained individually. Same kind of behavior and
attention is given to all the customers. Getting ideas for improvement from customer
side is a new idea and that is working very well in PTCL. All the customers are
asked to fill a suggestion form and the standards of the org are improved through
them. So far my learning is concerned; all the employees at branch were quite
cooperative. They helped me to understand the activities of a org to possible extent.
Their good attitude gave me more confidence to learn more and to ask if I have any
query in my mind. Besides there ever going activities they never get irritant by my
questioning. I had made an honest efferent to present the working & operation of
PTCL in simplest way.
No doubt PTCL is enjoying monopoly but the time is came when competition will
force Company to change its policies to become favorite telecom service provider in
the Market & keep its current place & customer base.
The company maintains a leading position in Pakistan as an infrastructure provider
toothier telecom operators and corporate customers of the country. It has the potential
to be an instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical
Fiber Access Network in the major metropolitan centers of Pakistan and local loop
services have started to be modernized and upgraded from copper to an optical
network On the Long Distance and International infrastructure side, the capacity of
two SEA-MEWE
The image of PTCL being leading Telecom providing is not good in the eyes of
common Customer especially there are lot of complaints about the including the
bogus local calls in the monthly bills of various customers. PTCL also provide the
detail of local calls made from any Land Line Number which would be provided in
Micro level to the customer. Faulty Telephone connection Fault Free within 24 hours
in order to maximize the Revenue, as Revenue of PTCL should sacrifice at the cost of
Faulty Telephone.PTCL should make Customer Care Centers in remote areas.
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PTCL is a good Organization in the way that anybody can join it for his/ her long-
termcareer. Overall working environment is comfortable. Management of branch
cares a lot of its employees and considers them as the Asset of PTCL. Behavior of
senior executive of bank is very polite and they are caring about the individual’s
career and their growth. PTCL needs innovative service offerings — currently it
doesn’t even offer bundles or a single bill.
It is said that the best assets of a company go home to their family in the evening. Can
the culture of PTCL be changed to a performance and service-based organization?
According to the latest director’s report from PTCL the “organization is being
revamped”. Only time can tell the impact. However management is very demanding
about the targets but good reward at the achievement of assigned targets is awarded.
Employees at PTCL are quite efficient. Its employees have to bring their org among
the list of good. It also shows their loyalty, commitment to organization.
Employees are given the benefits like bonus, gratuity funds, loans, increments, and
medical. All the customers are entertained individually. Same kind of behavior and
attention is given to all the customers. Getting ideas for improvement from customer
side is a new idea and that is working very well in PTCL. All the customers are asked
to fill a suggestion form and the standards of the org are improved through them. So
far my learning is concerned; all the employees at branch were quite cooperative.
They helped me to understand the activities of a org to possible extent. Their good
attitude gave me more confidence to learn more and to ask if I have any query in my
mind. Besides there ever going activities they never get irritant by my questioning. I
had made an honest efferent to present the working & operation of PTCL in simplest
way.
6.2 Recommendations
Should be decreased the over number of employees.
Should bedeveloping the training and development process of every
employee.
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PTCL management should give concentration towards the Securities of
deposit and it should be on maximum level.
The return on deposit should be checked accordingly.
The cash generated from the operation must be utilized accordingly.
Each Region should allocate the funds at its own level.
PTCL should take the services of highly qualified financial analysts.
In every organization; In PTCL this is not going well. So there is an immense
The punching system of Billing through automation attach with main branch
he takes so much time to adjust so it should be revived.
PTCL is not utilizing its surplus profit in long-term investment projects which
be done.
need to improve this department.
system in the Finance & Revenue wing should be revived in
The promotion
true manner
All promotion must be made strictly on merit.
Each Region should maintain Profit & Loss and Balance sheet and the
statement of Cash inflow and outflow.
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Hundred percent computerization in PTCL would be helpful to save the time
and money and provision of quick services to its valued customers.
No doubt P.T.C.L having the monopoly in providing the Land-Line Telephone
connection in Pakistan and its playing its role magnificently. In current
scenario P.T.C.L has increases its Revenue quite dramatically and probably
that as soon as this organization has become privatized it will flourish its
revenue in better manner.
PTCL should immediately change its Finance upper level of hierarchy and
should stream line in the good manner.
PTCL should also encourage the Billing On line system that each and every
customer should have to pay his/her bill on line basis..
The image of PTCL being leading Telecom providing is not good in the eyes
of common customer especially there are lot of complaints about the including
the bogus local calls in the monthly bills of various customers. PTCL should
also provide the detail of local calls made from any Land Line Number which
would be provided in Micro level to the customer.
74
References
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