Internship Report

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Internship Report.
Conference Paper · January 2015
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Syed Bilal Hassan

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Hailey College of Commerce, University of the Punjab, Lahore
LETTER OF TRANSMITTAL
Prof. Muhammad Majid

Hailey College of Commerce,
University of Punjab, Lahore
Subject: Submission of internship report.
Respected Sir,
I am pleased to present to you the internship report made on Pakistan

Telecommunication Company Limited, dated from 1st July 2014 to 13th August
2014. The report has been prepared in accordance with the requirements and the
guidelines approved by the competent authority.
This report includes the introduction of Pakistan Telecommunication Company
Limited, organizational structure, ratio analysis with bar charts, interpretation of ratio
analysis, SWOT analysis, general recommendations to the organization, skills that I
acquired by me, and some additional data on how the organization works.
In this report I have covered the history, mission, vision, field of activities, and ratio
analysis of the company, my work experience, my observation and my
recommendations.
Thank you for your time and consideration.
Yours sincerely
Syed Bilal Hassan
Roll # BC11-340
E-Section (Morning)
Mention the Areas Covered by the Report
The report which I prepared highlights almost main contents of Pakistan

Telecommunication Company Limited. The report covers the history of the
Company, introduction, and vision, mission statement, the objectives, core
values and the company target setting for its future promotion, SWOT,
International Networks, Products and Services, Subsidiaries of PTCL,
Competitors of PTCL, Departments of PTCL and Financial Analysis.
This area deeply covers the almost things which are necessary to understand
the above mention things. Later this report covers the organizational structure
which includes the management and different committees such as business
development & review, management coordination, audit committees. After that
report consists of the data regarding the work done by student in different
department. The report covers the overall financial highlights of bank which
includes ratio analysis of balance sheet items and income statement items.
Later that in this report remaining areas such as conclusion, suggestions and
recommendations, skill acquired by student and appendix which consists
balance sheet, income statement, cash flow statement and statement of
owner equities.
All above mention name deeply clarify the explanations which are necessary
to understand the working report of Pakistan Telecommunication Company
Limited.
Acknowledgement
First of all, Thanks to Almighty Allah for giving us strength to perform and
thank to our parents and friends for giving us support by their valuable prayers
and good wishes. It is hereby disclosed that on the demand of our college, we
made this Internship report on the topic of studying Work System of PTCL.
We made a thorough analysis of various aspects of the organizational work

system and made a visit to the Regional Office of PTCL in Lahore. We are
planning to visit Head Quarter of PTCL for the main part of the Internship
report.
After all Special thanks to the college for giving us opportunity to show our
ability in this small effort. Though we are beginner but certainly his kind
supervision will lead us to progress.
EXECUTIVE SUMMARY
Pakistan Telecommunication is the result of the efforts to promote and spread

telecommunication services throughout the country and to minimize the
dependence on foreign countries. Making this report is a part this semester of
M.Com degree program. The report covers all the aspects of PTCL’s structure
and design. In 1947 the Department of Posts and Telegraph was established
and in 1962 the Department of Telephone and Telegraph came into being. In
December 1990 Pakistan Telecommunication Corporation (PTC) took over
operations and functions from Pakistan Telephone and Telegraph
Department. In 1996 PTCL was formed after privatization and issued 600
million shares and got listed on all stock exchanges of Pakistan. From
establishments it has contributed a lot to the development of
telecommunication in the country. Pakistan Telecommunication Company
Limited not only Provides Conventional telephone facilities, it also offers
optical fiber services to the private sector. They provide services for home and
for business use. The organization structure followed by PTCL includes the
decisions made by the top level management, stroked rules and regulations,
mixture of both narrow and wide span of control, much of the authority is in the
hands of top level managers, and the jobs are performed according to the
functions performed. There are some of the factors which effect PTCL
composed of the external environment, or if the size becomes too large or any
new strategy made by the board of directors, or any technology advancement.
The purpose of this report is review of the structure and systems adopted by
the organization. The purpose of the study is to evaluate the organization in its
design. The primary data for this report is collected through personal
observations and through interviewing while the secondary data is collected
through the company’s website.
History of PTCL
After the partition of Indo-Pak subcontinent in1947, the areas that

became part of Pakistan were mostly neglected in respect of
telecommunication services. The supporting organization and manufacturing
telecommunication equipment were almost non-existent in Pakistan
In 1947, the Pakistan Posts and Telegraphs Department was attached

with the Ministry of Communication. During the first fifteen years, a sound
foundation was laid by creating supporting organizations like telephone stores,
workshops, training centers, productions and repair of equipment etc.
necessary for running of PP&T Department. However, telecommunication
network systems remained limited to major cities of the country. The
Government of Pakistan started five-year plans to build a proper base for
systematic development of the telecom sector.
With the expansion of the postal and telecommunication services,

government decided to split the PP&T Department into two departments i.e.
Pakistan Telegraph and Telephone Department and Pakistan Post Office
Department. The process of bifurcation was completed by July
1962.Significant developments took place during the first forty years in terms
of infra-structure development and transfer of technology from manual to
digital switching systems and increase in telephone lines from 12,000 in 1947
to 922,000 in 1990, besides establishment of manufacturing facilities of
various types.
In 1990, PT & T department was transformed into a corporation and

titled as Pakistan Telecommunication Corporation. The objective of this

Initiative was
to provide greater autonomy and flexibility to the organization in achieving its

long-term objectives. During the next five years, the telecommunications
sector made tremendous progress in the provision of telecommunication
services. It started manufacturing and production of Telecommunication
equipment/materials by using the latest technologies. During PTC period the
number of lines increased to 21, 26,054 in 1995, an increase of over 230
percent over 1990.
In December 1995, PTC was converted into a joint stock company

under Pakistan Telecommunication (Reorganization) Ordinance; assets of the
PTC were divided among Pakistan Telecommunication Company Limited
(PTCL), Pakistan Telecommunication Authority (PTA), National
Telecommunication Corporation (NTC) and Frequency Allocation Board
(FAB). While policy was reserved for the government, the regulation of the
sector was entrusted to the Pakistan Telecommunication Authority (PTA).
Frequency Allocation Board (FAB) was created for the management of the
radio frequency spectrum and National Telecommunication Corporation (NTC)
was created. For government’s telecommunication services PTCL inherited
about 94.8% of PTCL’s assets; including 2.862 million Access Line Installed
(ALI) and 2.228 million subscribers (ALIS). Later, in October 1996, the
parliament of Pakistan passed the Pakistan Telecommunication (Re-
organization) Act. PTCL was established in public sector as a joint stock
company in 1996 by enactment of the parliament of Pakistan. Pakistan
Telecommunication Company Limited (PTCL) was issued a license by
Pakistan Telecommunication Authority (PTA) to provide telecommunication
services in Pakistan for a period of 25 years commencing from January 1,
1996
The Emirates Telecommunication Corporation (Etisalat) offered the

Highest bid of $ 2.6 billion for 26% shares of Pakistan Telecommunication
Company limited (PTCL) on June 19, 2005. On 13th march 2006 the
government has signed an agreement with Etisalat to handover the
management of PTCL to them.
Overview of Historical Background
1947 Posts & Telegraph Dept. established
1962 Pakistan Telegraph & Telephone Department.
Pakistan Telecom Corporation

ALIS: 850,000
Waiting list: 900,000 Expansion Program of 900,000 lines
1991
initiated
(500,000 lines by Private Sector Participation
400,000 lines PTC/GOP own resources).
1995 About 5 % of PTC assets transferred to PTA, FAB & NTC.
1996 PTCL Formed listed on all Stock Exchanges of Pakistan
1998 Mobile & Internet subsidiaries established
2000 Telecom Policy Finalized
2003 Telecom Deregulation Policy Announced

2005 26 % Shares bought by Etisalat UAE through open bidding
Vision Statement
Strategic vision is a roadmap of a company’s future, providing specifics about

technology and customer focus, the geographic and product markets to be
pursued, the capabilities it plans to develop, and the kind of company that
management is trying to create. Strategic vision of Pakistan
Telecommunication Company is:
To be the leading Information and Communication Technology Service

Provider in the region by achieving customer satisfaction and maximizing
shareholders' value.
MISSION STATEMENT
A company’s mission statement is typically focused on its present business

scope-“who they are and what they do” mission statement broadly describes
an organization’s present capabilities, customer focus, activities and business
makeup.
Pakistan Telecommunication Company Limited’s mission statement is stated

as:
1 An organizational environment that fosters professionalism, motivation and

quality.
2 An environment that is cost effective and conscious.
3 Services that are based on the most optimum technology.
4 “Quality” and “Time” conscious customer service.
5 Sustained growth in earnings and profitability.
CORE VALUES OF PTCL
Values are general statements, procedures or understandings that guide or

channel thinking in decision making. It provides direction for action and
regularizes the decision making in certain circumstances.
Pakistan Telecommunication Company limited defines its values as:
1 Professional Integrity
2 Customer Satisfaction
3 Teamwork
4 Company Loyalty
Objectives of PTCL
Objectives are the ends towards which activity is aimed. These are the results
to be achieved. Pakistan Telecommunication Company limited states its
objectives as under
1. To provide quality services to its customers in Pakistan.
2. To provide maximum satisfaction to its customers by using the

latest technology.
3. To increase the worth of owners.
4. To lead the telecommunication industry in Pakistan.
01, 2005 to April 12, 2006, the company suffered a loss of Rs.114 million on
revenues of Rs.1, 142 million. PTCL management on its part has completed
all formalities pertaining to disinvestment of TIP and transfer of shares to
Ministry of IT and Govt. of Pakistan.
Auditors
A. F. Ferguson & Co.,

Chartered Accountants
Ernst & Young Ford Rhodes Sidat Hyder,
Chartered Accountants
The Directing Body of PTCL
The Chairman and the Board of Directors of PTCL are as:

Muhammad Akhlaq Ahmad Tarar, Mr. AbdurRahim Abdulla Alnooryani Dr. Waqas Masood
Chairman Member PTCL Board Member PTCL Board
Dr. Daniel Ritz Mr. YasirQadir Mr. Amjad Ali Khan

Member PTCL Board Member PTCL Board Member PTCL Board
Mr. Fadhil Mohamed Erhama Al Ansari Mr. SerkanOkandan Mr. Jamal Saif
Member PTCL Board Member PTCL Board Member PTCL Board
Ms. Farah Qamar

Member PTCL Board
THE MANAGEMENT BODY OF PTCL
WalidIrshad President & Chief Executive Officer

(CEO)
Muhammad NehmatullahToor Chief Financial Officer (CFO)
Chief Human Resource Officer

Syed MazharHussain
(CHRO)
Chief Business Operations Officer
Muhammad Nasarullah
(CBOO)
Chief Business Development Officer
Hamid Farooq
(CBDO)
Furqan Habib Quraishi Chief Marketing Officer (CMO)
Chief Digital & Corporate Service

Kamal Ahmed
Officer (CDCSO)
Chief Customer Care Officer
Jamil A. Khwaja
(CCCO)
Tariq Salman Chief Technical Officer (CTO)
Raed Yousef Ali Abdel Fattah Chief Information Officer (CIO)
Jamal Abdalla Salim Hussain Al

Chief Procurement Officer (CPO)
Sawaidi
Farah Qamar Company Secretory
Executive Vice President (Legal

ZahidaAwan
affairs)
Products and Services
Pakistan Telecommunication Company Limited not only Provides

Conventional telephone facilities, it also offers optical fiber services to the
private sector. We will briefly discuss below the product lines being offered by
the PTCL. Basically PTCL divide their services into two parts.
TYPES

Home Product and services Business Product and services
HOME PRODUCT AND SERVICES
PTCL SMART TV
PTCL digital multi-channel Television service that delivers television programs

to households via a broadband connection using the Internet Protocol (IP)
technology. The service requires subscription and Customer Premises
Equipment (CPE). An IP-based platform allows the TV service to be ‘smarter’

than the traditional broadcast and cable TV services, by making the TV
viewing experience more interactive and personalized.
BROADBAND
Broadband in telecommunications refers to a signaling method that includes

or handles a relatively wide range (or band) of frequencies, which may be
divided into channels or frequency bins. Broadband is always a relative term,
understood according to its context. The wider the bandwidth, the greater the
information-carrying capacity. PTCL is providing broadband services to its
customers without any extra cabling connection allowing its customers to
enjoy the voice service over the same telephone line.
VFONE
Vfone is the fixed wireless access network that allows customers to connect
wirelessly with the whole world. It’s easy to use and economical and you can
enjoy the wireless connectivity within your premises. PTCL is using the CDMA
2000 1Xtechnology for Vfone and the network is already enabled for Voice,
Dialup-Internet access (153.6kbps) and EVDO Broadband.
Prepaid calling cards
PTCL prepaid calling cards gives nationwide access with international facility.
It comes in easily affordable denominations of Rs.100, 250, 500, 1000 & 2000.
These cards are easily available throughout the country and it is easy to use it
from any PTCL digital phone. Customer has to pay neither line rent nor bill. In
November 2003 PTCL launched 100 denomination prepaid calling card with
advanced features.
BUSINESS PRODUCT AND SERVICES
BUSINESS DSL
Business DSL solution gives your business high-bandwidth Internet access at

a fraction of the cost of TI-based access. That's because DSL dramatically
reduces the circuit access charges and allows for traffic aggregation across a
large number of customers. For one low monthly charge, you can e-mail,
research on the web, stream audio and video, connect to intranets, transfer
large amounts of data, and perform many other tasks only capable through
high speed internet access.
EVO WIRLESS
PTCL is providing the new revolution of broadband i.e. PTCL Evo - the
ultimate solution for high speed internet access on the move. Just plug and
play or work at home, in the office or anywhere in between.
Universal Internet Number (UIN)
Due to the boom in telecom sector ISPs continue to mushroom at around the
country. UIN is a number starting with 131 used for accessing internet e.g.
13199199. UIN number is assigned to each ISP by PTA. The call dialed is
charged as one local call irrespective of its duration. Internet service in
Pakistan has constantly improved due to the technological advancements.
International Networks
SEAMEWE-3 Submarine Cable System
PTCL is a member of SEAMEWE 3 Cable Consortium with its Cable Landing

Station at Karachi. SMW-3 cable connects 39 cable landing stations in 33
countries and four continents. SMW-3 is the longest system of the world with a
total length of 39,000 Km.
SMW-4 Submarine Cable System
SMW-4 is a relatively new submarine cable system (inaugurated in December

2005) and links 14 countries with 16 landing stations across Europe, Middle
East and Asia. The system is using Terabit DWDM technology to achieve. The
link between any two destinations is STM-1. SMW-4 is designed for relatively
higher traffic volumes.
Satellite Communication
PTCL has Intelsat Standard Earth stations near Karachi and Islamabad.
These installations provide the diversity for international voice connectivity and
also work as Hub for domestic satellite users. There are four Intelsat Standard
Earth stations at Islamabad, Gilgit, Skardu, and Gwadar.
SUBSIDIARIES OF PTCL
Paknet
Paknet is a fully owned subsidiary of PTCL. Technical assets and staff were
carved out of PTCL to Paknet, to help new company to meet the competitive
market. The staff, thus transferred had requisite experience and expertise in
internet and data communication field. However most of the employees have
been hired from private sector. The recently reconstituted board of directors
of Paknet comprises senior and experienced professionals nominated by
PTCL board.
Pak Telecom Mobile Limited (PTML)
In today’s changing trends in the telecom sector, all global telecom have
strong cellular networks either directly or through subsidiaries. While keeping
this in mind there was a need for PTCL to have its own cellular service. Pak
Telecom Mobile Limited (PTML), a wholly owned subsidiary of PTCL, was
created. The company commenced its operations under the brand name of
Ufone from Islamabad in January 2001 and subsequently extended its
coverage to other cities. Presently Ufone’s network covers more than 750
cities, towns and major highways of the country. During this last year Ufone
successfully completed its US $170 million phase IV network expansion
consequently the asset base of the company has increased from 20 billion to
Rs.27 billion. As for the company’s
approved business plan, Ufone was expected to close its first financial year
(ending June 30, 2001) with about 30,000 customers but
Ufone achieved over 100,000 customers by June 2001.Now during this

financial year (ending June 30, 2006) Ufone has increased its customers from
2.58 to 6.34 million.
Telephone Industry of Pakistan (Tip)
Telephone industries of Pakistan (Pvt) Ltd Haripur was incorporated as a

private limited company in 1953 by Gop with the collaboration of Siemens
AG.germany.the company is managed by Board of Directors having 8
directors on the board, six from PTCL and two from Simens A.G.Germany.
The company started production of Telephone sets. With the passage of time
and with the change in technology, its capacity has increased in addition it
was also producing Contains, Exchanges, distribution boxes, Divisional
Cabinets and Drop wire.
The company was having marketing limitations and lakeluster approach

predominantly for reasons of legacy and due to its remote location.
Paid up capital of the company is Rs.759753 million and turn over was
depending upon orders from PTCL, NTC, SCO and WAPDA.
Carrier Telephone Industries (CTI)

Carrier Telephone Industries (CTI) was incorporated as a private limited

company in the public sector in 1969 in collaboration with Pakistan
telecommunication Company Limited and Siemens AG, Germany. CTI was
established to acquire, develop and produce latest state-of-the-art equipment

in the field of transmission technologies, electronics and other
telecommunication areas. It provides a sophisticated technology base for the
country. Today CTI is manufacturing SDH transmission equipment,
Multiplexing products, Optical Fiber and Digital Radio Systems. In addition it
has also ventured in the manufacturing of Microwave Gid Parabolic Antennae,
PABX and Pai Gain System. It has recently started assembly of personal
Computers, besides selling other Electro-mechanical accessories, measuring
instruments and other products. The company employs latest manufacturing
techniques i.e. Surface Mounting Technology (SMT) for mounting components
and its robotics arms/machines provides excellent support for after sales
services. It is equipped to train and fully support its customers.
CTI was privatized in November 2005 as part of the PTCL

privatization commitment. PTCL’s equity investment of Rs.8 million was sold
for Rs.500 million to Siemens AG the privatization commission has not yet
released the proceeds of this sale to PTCL. The company had earned a
current year profit of Rs.2 million before privatization in November 2005.
UFONE
Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL

commenced its operations on 29th January 2001 as a GSM 900 service
provider. Since the outset, it has expanded its coverage and customer base at
a rapid pace and established itself as one of the leading cellular service
providers in Pakistan. 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).
Structure of organization
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 there come the SEVPs (Senior Executive Vice Presidents) i.e.
SEVP (Finance), SEVP (Operations), SEVP (Technical), SEVP (Human
Resource Management), SEVP (Marketing & Business Development)
and SEVP (Legal affairs).
 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 EVPs, 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 comes the Senior Managers (Operations), Senior
Engineers (Operations), Engineers to look after the telecom system of
Regions. In non-gazetted 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, and Exchange Cleaners.
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.
Organizational Chart
Network Operations Center (NOC)
PTCL is a leading provider of telecom voice and data services within

Pakistan. As part of its continuing infrastructure developments, PTCL has
embarked upon a major investment program in the Network Operations
Center (NOC). The purpose of NOC is to control, monitor and manage the
entire PTCL network; to enhance and optimize network management through
a transparent and centralized platform and to create a highly available,
adaptable and fault resilient network that can meet market demand and offer
customer satisfaction. Through the NOC, PTCL has been able to address
those issues with a complete convergence of the entire network on a single
platform.
Benefits
 Proactive identification and resolution faults of through Real-time

Network Monitoring & status visibility.
 Increase network availability through Enhanced Quality of Service and
centralized performance statistics and reporting mechanism.
 Increased Accountability and Transparency through escalation policies,
work orders and maintenance of secure activity logs.
DEPARTMENTS OF PTCL
Every organization is divided into definite departments. Each department

performs different kind of jobs and requires staff with specialized skills to
handle particular job.This increases the efficiency of workers.
The PTCL Head Quarters is comprised of several departments. The division is

made on the basis of function they perform. Hence it can be concluded that
PTCL has adopted the policy of functional departmentalization. The main
departments of PTCL are mentioned below.
1. Human Resource Management Dept.

2. Finance Dept.
3. Commercial Dept.
4. Operational Dept.
5. Technical Dept.
6. IT Dept.
7. Corporate Affairs Dept.
8. Special Projects Dept.
Human resource management
 It is a huge organization and being considered as one of the biggest

company in Pakistan.
 It has more than 56,000 employees and a huge network of organizational
management has been spread throughout the country.
 PTCL is engaging a substantial number of experts and specialists of

standing caliber in different spheres of profession.
 Job analysis and revision of jobs description was undertaken for improving
the performance standards.
 To meet the future challenging situations in the face of privatization and
post monopoly challenges, a corporate culture and competitive
environment has to be developed, for which all the available resources
have been taped.
 Special training courses and workshops have been conducted for the top
and middle management through reputed organizations like LUMS.
 Efforts are being made to improve productivity and efficiency of the
Company while emphasis is also being placed on effective management
employees relationship and better line of communications to achieve
corporate goals.
 The Human Resource department of the company operates in an auxiliary,
advisory, or facilitative relationship to other departments in the
organization.
 The SEVP of the H.R. Department is the individual most actively involved
in policy revision to cover recurring problem or to prevent anticipated
problems.
 A major portion of the activities of those engaged in staff personnel work is
in the nature of counsel and advice to line manager.
 The H.R. Dept. carries out important control functions. It monitors the
performance of line department and other staff departments to ensure that
they conform to established personnel policy, procedures, and practices.
 The service responsibilities of the H.R. department are apparent when one
examines such things are as the employment, training, and benefits
functions. The tasks of recruiting, interviewing and testing job applicants
are performed in the H.R. Dept.
Finance department
This department is divided into following three sub-sections:
 Finance
 Accounts
 Revenue
The Finance Wing deals with the revenue matters of the company & the
Accounts Wing is responsible for proper book–keeping of the financial
transactions, commercial audit & preparation of periodic accounts of the
company. The Accounts Office of PTCL is in Lahore.
Finance is the backbone of every organization because without finance any

organization can’t run its business. It plays an important role in determining
the long-term objectives and evaluating the feasibility of the business. The
financial activities of PTCL have been split up into three major branches:
Finance, Accounts & Revenue. The details regarding this section will be
covered in finance section with reference to my project.
Commercial Department
 Commercial section with qualified/experienced staff is being established.

 Company section is taking both short-term and long-term view of emerging
trends of highly competitive markets as its monopoly is coming to an end.
 It analyzes all the possible Company options, i.e. introducing new services,
adopting new technologies to maintain the leading role in the sector and
preserve its dominant position in the industry.
 The Company likes to reiterate that it will continue to play a prominent role
in Telecom sector of Pakistan.
 It considers that one of the most important aspects of the forthcoming
competitive environment is pricing of products and services.
The new paradigm would require cost-based services with thin-profit
margins but higher volumes. Inherently, PTCL services were not cost-
based. There were in-built subsidies and long distance calls, both domestic
and international, were highly priced. The Company, therefore, evolved
strategies of gradual price rationalization
 Commercial department should try to make PTCL the most profitable

organization, which should generate a great deal of revenue in local &
foreign currency.
Operational Department
Manages operations of PTCL HQ, with regional offices, branches, and,

subsidiaries as well as with other corporations.
The purpose of operation department is:
 To control, monitor and manage the entire PTCL Network

 To create a highly available, adaptable and fault resilient network that can
meet the market demand and provide customer satisfaction.
 Enhanced Quality of Service and centralized performance statistics and

reporting mechanism.
Technical Department
This department is engaged in the management and control of technical

aspects of the company, e.g. technical manpower, technical training, technical
equipment, etc.
IT Department
This department is established to introduce new and advance technology in

PTCL. Due to IT department working system is to converted in a computerized
system.
Corporate Development Department
This department deal corporate level issues such as PTA, International

Telecom Union, Legal and Regulatory affairs etc.
Special Projects Department

This department is doing their activities on behalf of president.
COMPETITORS OF PTCL
There is no meager competitor of PTCL in landline but with the growth of

telecommunication industry of Pakistan competition increasing specially in
mobile phone sector. In total there are more than 800 million subscribers of
mobile phone. There are 03 big players in mobile phone industry but 3 of them
are the competitor of PTCL:
 Mobilink
 Telenor
 Warid Tel
 Zong
MOBILINK
Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently

having more than 31,958,597 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 17,841,074 subscribers which

is 20 % of total mobile industry.
WARID TEL
Waridtel is also providing cell phone facilities in Pakistan. Waridtel having

more than 15,114,678 subscribers which is 17% of Pakistan mobile industry.
Zong china Mobile Company
Zong is also providing cell phone facilities in Pakistan. 26.7 million of

subscriber zong/china mobile company.
NEW COMPETITORS
Other than mobile & land line PTCL is facing competition in F.W.T (Fixed
Wireless Telephone) product market. Below are the major competitors.
Telecard 501,680
World Call 468,335
This has added competition for PTCL (1,245,639) in WLL (Wireless local
Loop) field.
Personal Practical work done by the student
Revenue Department
Structural diagram of revenue and collection department
General Manager
Finance
Senior
manager R&C
Manger Manger Manager Manger Ali Park Manger DP

CTH BGP
DHA & section
CANTT
They have different working in revenue and collection department as

following:
 Billing section
 RMS console ( Receivable Management System)
 CCS (customer care services)
 Security deposit and demand notice
 Data processing section
 Bank scroll and stubs
Billing section
In which they have different traffic provided to the customer and accordingly
provided to the traffic the bills has generate. They have different traffics
provided to the customer as following:
Local calls, broadband, international calls,
RMS console
They have different steps of process in which they have following as:
 Arrears console
 Inquiry console
 Miscellaneous
 Recovery console
1) Arrears console
They have two aspects in which include:

 Manual block restore
 Block history
Manual block restore
In which whose customer no payment than Islamabad headquarter through

batch files and through e-reporting whose customer no paid the bills than
close the defaulter. In revenue collection department has manually close one
by one and who customer paid the bill than again reconnect.
Block history
In which any facilities to give the customer to international calls and close due
to ay reasons may be nonpayment or may be defaulter and no payment of bill
for 2 month so block the facilities. They have different cases as following:
 One way reactive

 Two way reactive
 Terminate
2) Inquiry console
In which different history check to the customer and different aspect in which
include:
 List history inquiry
 DSL history inquiry
 User profile inquiry
 Pay history inquiry
 Debit/credit inquiry
 Discount suit inquiry
3) Miscellaneous
In which two aspects are include:
 Debit and credit inquiry
 Work followed task

4) Recovery console
In which three aspects are include:
 Bill payment
 Installment apply
 System batch print
Bill payment
In which duplicate for check billing. Customers are paid the bill or not
Installments apply
In which broadband, IPTV and different other connection are there to provide
the customer and option to paid the bill in installment if bill payment is more
than 10000.
System batch print
If most bill print is together than this command will received at one time 100
bills together printed
E-Reporting system
User id
Password
Free service telephone connection report
In FSTC report PTCL provided different facilities to the employee
Five one seven one
Official number Residentional number
Ceiling limit
In which different number of unit PTCL are giving to the employee rank
wise for different ceiling
As like general manager of finance have unlimited units provided.
PTCL report portal
 Bad debt report
 Billing report
 CCS report
 Defaulter report
 DSL report
 Miscellaneous report
 OSS report
 Pre-invoiced billing
 Revenue and collection
Bad debts report
In which two aspects are involve
 Doubtful bad debts bill registered
 Doubtful bad debts monthly balance sheet

Billing report
Every query how much generates bill for DSL and how much number are
attained. They have different points giving as follow:
 Overseas detail
 PRS (0900) report company wise
 Summary of telephone number working for armed forced (agreement)
 Summary of exchange telephone
 Slab wise analysis of bills
 Pay phone customer services
 Billing reconciliation
Customer care services report
 Aging of completed report
 Aging report (broadband installation)
 Aging of pending orders
 Broadband subscription report
 Broadband summary report
 Daily registration
 Incentive report
Defaulter report
 Defaulter bill registered
 Defaulter history inquiry
 Defaulter monthly balance report
 List of defaulter
 Defaulter live pool matching report
DSL report
 Report of DSL subscriber
 Revenue report of broadband services
 Summarized report of broadband services
 Summarized report of dial-n-net
 Telephone number having miscellaneous

OSS report
 1-2 OSS collection report
 3 OSS collection report customer services
 4 OSS daily transfer bank deposit report
 5-7 OSS daily monthly cash receipt report with amount
 6 OSS daily excess short collection report
WHAT DUTY I PERFORM
 Retention working
 Win back
Retention working
In which dial telephone to the customer and resolve the issues. 100 telephone
dial on the daily biases of internship and write down the problem and issues of
the customer and also ask the customer why is not paying the bill.
Win back
In which who’s customers not pay the bill and going on defaulter sides than
revenue and collection department contact the customer and insist the
customer to pay the bill and who’s customer agree so that is win back and if
not pay so they become defaulter.
CUSTOMER COMPLAINS RECTIFY TO

RESOLVE BILLING ISSUE
Three types of meeting:
 Divisional vigilance committee
 Regional vigilance committee
 Zonal vigilance committee
Divisional vigilance committee (DVC)
In which to resolve the issue for lower level. If any customer complaint for bill
point of view any case may be attached more bill and customer no use so they
have limit to relief for 1000 Rs.
Members are sitting:
They are two member are sitting who’s are making decision
 Revenue
 Business manager
Regional vigilance committee (RVC)
In which they have same procedure of above committee but the relief amount
is 5000
Members are sitting:
 Manger revenue, SM of revenue and collections department
 BM, SBM, GM
Zonal vigilance committee
In which also customer complaint and this is last and highest authority firstly
main headquarter in Islamabad but now it is situated in Lahore
Member are sitting

 2 GM (general manger), 2SM(senior manager), SEVP (senior executive
vice president)
 RGM (regional general manger)
Data processing section
In data processing section to check the overall billing procedure they have
different region to distribute the bill in different areas as following:
 North
 South
Division of bills
The bill divided into two categories
 TCS
 GPO
All bills under the supervision of Islamabad headquarter. Wale-Hamza the

head of all over PTCL billing in Pakistan different files send through TCS and
head office. Computerized printings of billing the direct command of batch files
and combination of sheet all data are attached. The department of
UBDC(utility bills distribution collection) under the revenue department send
the our employee before printed the bill to check the issue date, due date,
postal date, number etc all things are right than command for printed.
TCS
PTCL contract the TCS for printing the bills and distribution and PTCL paid the
amount TCS. If bill will not delivered to the customer properly than deduct the
amount of TCS.
LTR-N Lahore LTR-N region Lahore
Senior Manager (R & C)

LTR-N&S region Lahore
Printed bills
 G.P.O 83000 bills printed per month
 TCS in north way 144000 bills printed and in South way 110000 bills
printed
Revenue generates the month of May 2014
 PSTN mean land line and the month of May2014 PSTN given to the PTCL
150 million
 DSL mean broadband and the month of May 2014 DSL given to the PTCL
127 million
BANK SCROLL AND STUBS
The bank scroll and stubs are the part of bill if we see the bills the above
portion and below portion are there in bill. When the customer paid the bill the
above portion are back to the customer and below portion are there in bank
and some banks process the bill and send to the main PTCL head office and
some bank don’t process than send to the knift institute and then proceed and
send the scroll and stubs in PTCL head office
FINANCE DEPARTMENT
In finance department they have several working in this department all

accounts are maintain and payable and payments basically in which different
software are used like SAP, ERP etc. all data are parking and then creates
the invoice and then cheque payment are ready to give the different company
or employee for the purpose of petty cash or another things.
They have different invoices come the finance department for the
payment purpose so firstly checking the all data and enter in SAP the head of
parking and get the invoice and check the budget if they have than posting
and creates the cheque.
Payable Department Function
Departmental Hierarchy:
Payable department of PTCL has the hierarchy where three Assistant
Managers are under the subordination of a Finance Manager that directly
reports to its senior manager. Following the practical diagram of hierarchy
 Assistant Manager – (Finance) - (Income Tax, WHT, Cash Imprest,
Voucher Placement)
 Assistant Manager (Acting Manager) – (Financial Analyst) Pre-Audit
 Assistant Manager – (Accounts) (Parking & Posting and Cheque
Printing)
 Cashier (Allotment of VR & JV Number, Cheque Dispatching, Record
Keeping)
Payable Department Procedure
 Following is the entire procedure of PTCL payable department:

 Bills and vouchers are received by scrutiny departmental members in
CTR
 Required documents are verified then its send for Placement of
Payment voucher on it to Assistant Manager (F), Income invoice
Register.
 Scrutiny of Bills is done within a day
 Once the scrutiny is done, vouchers are placed on it
 Then it Send to Signature of Manager (F) and Senior Manager (F) for
Pre-audit Checks and Approval for Process
 Voucher are then parked in SAP
 Posting in SAP Followed by printing of cheques
 Signing of cheque by particular authority
 In the end dispatch of cheques through TCS.
Stepwise Procedures
Now we will analyze each procedure of the cycle individually, where first is Bill
Receiving:
 Entry of bill in an incoming invoice registers (MS ACCESS)

 Assigning of serial number to the original, duplicate and triplicate copes
of each bill
 Entry of serial number and date with initials of receiving person on all
copies
 Checking of available documents with bill

 Return of triplicate copy to the person submitting the bill
 Filling of both copies cost center wise
Parking in SAP
 Login in the parking user ID in SAP

 Use of Short code Fv60 for parking of payment voucher
 Use of Short Code fv50 for parking of journal voucher
 Printing of parked SAP voucher
 Attachment of voucher with the original bill
 Forwarding of file for scrutiny
Scrutiny of Bills
 Checking of availability of relevant documents

 Checking rates of good acquired
 Checking of availability of approval from concerned authority
 Signing of person scrutinized the bill if found correct in all respects
 Attachment of objection letter in case there is any objection
 Checking and signing of voucher by the AM Finance Scrutiny
 Checking and signing of voucher by the Manager Finance.
 Demanding funds from AM finance budget if not available in the cost
centre
 Sending of files for posting
Posting of Voucher
The staff while posting of voucher is following steps

 Login in to SAP with posting user ID
 Overview of voucher
 Posting of voucher through T code fbv0 in SAP
 Signing and stamping over the voucher
 Forwarding of vouchers file to Manager Finance for payment process
Payment Process in SAP
Payment process has to follow the above steps through SAP:

 Payment process in SAP through login ID of payment user
 Calculation of income tax
 T-code f53 used for creating payment document
 The document number entered on voucher for cheque printing
reference
 Voucher is forwarded for cheque printing.
Cheque Printing
The last step for payment process is cheque printing process which has
further 3 more procedure to do it with automation:
 Blank cheques are inserted in printer for printing with complete serial
 Printing done through login ID of payment user
 T code used for cheque printing
 stamping of cheque printing authorities done after its printing
 Cheque numbers are entered over the voucher
Signing and Dispatching of Cheques
 Once the cheques are signed, the last two procedures are
followed,
 Checking and verifying particulars cheques with the voucher
 Signing of cheques counter slip
 Cheque along with voucher send to SM Finance for signing as a first
authority
 Signing of cheque from second signatory
 Separation of cheque from voucher for dispatch
 Where the dispatch of all cheques is done follows these steps:
 Printing of envelope
 Handing over the cheque envelope to the representative of TCS within
days of the receipt of the bill
 Updating of Incoming Invoice Register by entering cheque number
against each bill
 Voucher stamped as PAID
 Voucher sends for binding.
Financial Analysis
INDEX ANALYSIS
An analysis of percentage of financial statements where all balance sheet or

income statement figures for a base year equal 100 (percent) and subsequent
financial statement items are expressed as percentage of their values in the
base year is called Index Analysis1.
STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2014
2014 2013
Note Rs ‘000 Rs ‘000
Equity and liabilities
Equity
Share capital and reserves

Share capital 6 51,000,000 51,000,000
Revenue reserves
Insurance reserve 2,196,770 2,958,336
General reserve 30,500,000 30,500,000
Unappropriated profit 8,117,782 16,324,138
40,814,552 49,782,474
Unrealized gain on available for sale investments 329,039 89,785
92,143,591 100,872,259
Liabilities
Non-current liabilities
Long term security deposits 7 549,256 529,358
Deferred income tax 8 2,676,026 3,749,739
Employees’ retirement benefits 9 33,011,258 33,050,773
Deferred government grants 10 6,848,180 5,123,099
43,084,720 42,452,969
Current liabilities
Trade and other payables 11 44,345,349 38,583,250
Total equity and liabilities 179,573,660 181,908,478

2014 2013
Assets
Non-current assets
Fixed assets
Property, plant and equipment 13 94,452,061 87,219,249
Intangible assets 14 4,826,422 5,157,172
99,278,483 92,376,421
Long term investments 15 7,791,296 7,791,296

Long term loans and advances 16 2,794,106 6,784,020
Investment in finance lease 17 84,398 38,781
109,948,283 106,990,518
Current assets
Stores, spares and loose tools 18 2,872,542 3,675,314
Trade debts 19 15,758,805 18,596,301
Loans and advances 20 4,136,133 6,541,852
Investment in finance lease 17 28,305 12,927
Accrued interest 21 344,801 667,024
Recoverable from tax authorities 22 16,366,457 15,586,424
Receivable from the Government of Pakistan 23 2,164,072 2,164,072
Prepayments and other receivables 24 4,994,327 910,116
Short term investments 25 18,441,389 22,405,669
Cash and bank balances 26 4,518,546 4,358,261
69,625,377 74,917,960
STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2014
Total assets 179,573,660 181,908,478
STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED DECEMBER 31, 2014
2014 2013
Revenue 27 81,512,598 81,061,355

Cost of services 28 (55,682,723) (53,073,952)
Gross profit 25,829,875 27,987,403
Administrative and general expenses 29 (9,857,639) (9,116,544)

Selling and marketing expenses 30 (3,290,137) (2,901,035)
Voluntary separation scheme cost 31 (8,174,536) -
(21,322,312) (12,017,579)
Operating profit 4,507,563 15,969,824
Other income 32 4,706,389 4,214,290

Finance costs 33 (295,193) (346,477)
Loss of property, plant and equipment due to fire 13.4 (907,230) -
Profit before tax 8,011,529 19,837,637
Provision for income tax 34 (2,804,035) (7,141,504)
Profit for the year 5,207,494 12,696,133
Earnings per share - basic and diluted (Rupees) 35 1.02 2.49

STATEMENT OF COMPREHENSIVE
INCOME
2014 2013
Rs ‘000 Rs ‘000
Profit for the year 5,207,494 12,696,133
Other comprehensive loss for the year

Items that will not be reclassified to profit and loss:
Remeasurement loss on employees’ retirement benefits (6,023,357) (5,288,914)
Tax effect of remeasurement loss on employees’ retirement benefits 2,047,941 1,798,231
(3,975,416) (3,490,683)
Items that may be subsequently reclassified to profit and loss:

Gain on available for sale investments arising during the year 274,981 87,291
Gain on disposal transferred to income for the year (35,727) (49,295)
Unrealised gain on available for sale investments - net of tax 239,254 37,996
Other comprehensive loss for the year- net of tax (3,736,162) (3,452,687)
Total comprehensive income for the year 1,471,332 9,243,446

STATEMENT OF CASH FLOWS

2014 2013
Cash flows from operating activities
Cash generated from operations 37 38,548,190 38,152,072

Payment to Pakistan Telecommunication Employees’ Trust (PTET) (12,551,507) (8,478,000)
Employees’ retirement benefits paid (1,055,098) (734,420)
Payment of voluntary separation scheme cost (8,422,813) (54,305)
Long term security deposits 19,898 (5,129)
Income tax paid (2,157,850) (2,681,395)
Net cash inflows from operating activities 14,380,820 26,198,823
Cash flows from investing activities
Capital expenditure (20,938,960) (14,339,444)

Acquisition of intangible assets (246,373) (368,857)
Proceeds from disposal of property, plant and equipment 38,768 5,804
Short-term investments (12,000,000) -
Finance lease (74,432) (65,360)
Long term loans and advances 1,007,682 (450,856)
Receipts against loan to PTML 5,500,000 2,500,000
Return on long term loans and short term investments 4,064,490 2,767,724
Government grants received 2,106,683 1,662,822
Dividend income on long term investments 10,000 -
Net cash outflows from investing activities (20,532,142) (8,288,167)
Cash flows from financing activities
Dividend paid (9,652,673) (5,094,273)

Net (decrease) / increase in cash and cash equivalents (15,803,995) 12,816,383
Cash and cash equivalents at the beginning of the year 26,763,930 13,947,547
Cash and cash equivalents at the end of the year 38 10,959,935 26,763,930
STATEMENT OF CHANGES IN EQUITY

Issued, subscribed and
paid-up capital Revenue reserves Unrealized gain
Insurance General Unappropriated on available for Total
Class ‘A’ Class ‘B’ Reserve reserve profit sale investments
(Rupees in ‘000)
Balance as at January 01, 2013 37,740,000 13,260,000 2,678,728 30,500,000 12,498,296 51,789 96,728,813
Total comprehensive income for the year

Profit for the year - - - - 12,696,133 - 12,696,133
Other comprehensive (loss) / income - - - - (3,490,683) 37,996 (3,452,687)
- - - - 9,205,450 37,996 9,243,446
Transfer to insurance reserve - - 279,608 - (279,608) - -

Interim dividend for the year ended
December 31, 2013 - Re. 1.00 per share - - - - (5,100,000) - (5,100,000)
- - 279,608 - (5,379,608) - (5,100,000)
Balance as at December 31, 2013 37,740,000 13,260,000 2,958,336 30,500,000 16,324,138 89,785 100,872,259
Total comprehensive income for the year

Profit for the year - - - - 5,207,494 - 5,207,494
Other comprehensive (loss) / income - - - - (3,975,416) 239,254 (3,736,162)
- - - - 1,232,078 239,254 1,471,332
Transfer to insurance reserve - - 267,576 - (267,576) - -

Utilization of insurance reserve - - (1,029,142) - 1,029,142 - -
Final dividend for the year ended
Interim dividend for the year ended
- - (761,566) - (9,438,434) - (10,200,000)
Balance as at December 31, 2014 37,740,000 13,260,000 2,196,770 30,500,000 8,117,782 329,039 92,143,591
Ratio Analysis
Liquidity Analysis
Liquidity ratios measure the ability to meet current liability with current asset
i.e. payment of short-term obligations. The ratio holds different meaning for
creditor and owners of the firm. For owner high liquidity means inefficiency of
the firm. For owner high liquidity means inefficiency of the management, while
high liquidity of the firm is considered favorable by the creditors as they see
that the firm can pay their obligations. Following are the most common types
of liquidity ratios used by analysts to determine the liquidity of the firm.
 Current ratio
Current ratio is current asset divided by current liabilities4. It shows a firm’s

ability to cover its current liabilities with its current assets. The following table
summarizes the current ratio of the firm for the last three years.
Table Current ratios over time (Rs. In thousand)
2014 2013
Current assets 69625377 74917960

Current liabilities 44345349 38583250
Current ratio 1.57 1.94
Interpretations
Generally a current ratio of 2 is considered acceptable, companies listed on

standard & Poor 500 Index has an average current ratio of 1.5. In 2014 the
current ratio was 1.57. In 2013 the current ratio is 1.94 i.e. PTCL has Rs.1.57
to pay Rs.1 of short term liability. The current ratio is less because PTCL has
kept high on investing in capital expenditure compare to 2013.
Current Ratio
2.5
1.5
1 1.94
1.57
0.5
0
2014 2013
 Quick Ratio
Quick ratio shows the ability of the firm that how quickly it can pay its liabilities
without taking into account the inventory and prepaid expense of the firm,
which are least liquid portion of the current assets. Liquidity means the ability
of an
asset to be converted into cash without significant loss in value. It is calculated

as current assets minus inventory divided by current liabilities.
2014 2013
Table Quick Quick Assets 66752835 71242646 Ratio Over
Time (Rs. in Current Liabilities 44345349 38583250 thousand)
Quick Ratio 1.51 1.85
Interpretation
The quick ratio of the firm is almost to current ratio of the firm as it has
decreased from 2005 onward but still it is encouraging, shows that the firm is
liquid enough to pay its liabilities at short notice but this trend of increasing is
favorable for short term creditors of the firm. This ratio has been affected by
the huge amount of dividend declared by the company. The company can
easily improve the ratio by reducing the dividend in the future but they have to
consider overall situation i.e. investor’s interest, creditor’s interest etc.
Quick Ratio
2
1.8
1.6
1.4
1.2
1
1.85
0.8
1.51
0.6
0.4
0.2
0
2014 2013
ACTIVITY ANALYSIS
Activity ratios measure the operational efficiency of the firm by looking into the
moments of total assets. These ratios tell us with how much efficiency the firm
has in employing its total assets to generate sales and with what frequency
current assets of the firm are turned into cash7. These ratios highlight the
activities of the firm throughout the year. Following are some commonly used
ratios to determine the activities of PTCL.
 Receivable Turnover Ratio
This ratio provides insight of the quality of the firm’s receivables and how
successful the firm is in its collection. In short it tells the number of times
receivables into annual net credit sales.
Table Receivable Turnover Ratio (Rs. in thousand)
2014 2013
Total Revenue 81512598 81061355
Receivables 2164072 2164072
Ratio 37.67 37.46
Interpretation
The higher the ratio, the shorter will be the time between the typical sales and
cash collection. The trend analysis shows that turn over ratio is increased in
2014. In the year 2014 receivable turnover ratio are 37.67 shows that PTCL is
turning its receivables into cash more than thirty seven times in a financial
year.
Receivable Turnover Ratio

37.7
37.65
37.6
37.55
37.5 37.67
37.45
37.4 37.46
37.35
2014 2013
Average payable period ratio

This ratio is calculated as operating cost divided by accounts payable. This

ratio is used to know about the number of times account payable is made
during the year. Payables turnover ratio = Purchases/ Accounts Payable
Average payable period = Days in accounting period/ payables turnover ratio
Table Payable Turnover Ratio (Rs. In thousand)
2014 2013
Purchases 55682723 53073952
Accounts Payable 44345349 38583250
Ratio 292 days 266 days
Interpretation
The ratio is very high in 2014 because the accounts payables are very low in
2014 as compared to that of 2013 which has shown an increase in the ratio.
Accounts payable is denominator in the formula and results a very huge
effect.
Average payable period ratio

295
290
285
280
275
270 292
265
260
266
255
250
2014 2013
 Inventory Turnover Ratio
This ratio determines how effectively the firm is managing its inventory. It is
calculated as cost of goods sold divided by inventory. In the case of PTCL we
will put operating cost.
Table Inventory Turnover Ratio (Rs. In thousand)
2014 2013
Cost of 55682723 53073952
services
Inventory 2872542 3675314
Ratio 19.38 14.44
Interpretation
Inventory turnover ratio was 14.44 in 2013 but increased to 19.38 in 2014.
However PTCL has shown good performance in 2014 by controlling inventory
turnover.
Inventory Turnover Ratio

25
20
15
10 19.38
14.44
5
0
2014 2013
 Total Asset Turnover
The total assets turnover indicates the efficiency with which the firm uses its
assets to generates sales.
Total assets turnover = sales / total assets
Table Total Asset Turnover (Rs. In thousand)
2014 2013
Revenue 81512598 81061355
Total Assets 179573660 181908478
Ratio 0.45 0.44
Interpretation
This means the Company turns over its assets 0.45 in 2014 and in 2013 is
0.44.
total Asset turnover

0.452
0.45
0.448
0.446
0.444
0.442 0.45
0.44
0.438
0.44
0.436
0.434
2014 2013
Debt Ratios
 Debt Ratio
Debt ratio measures the proportion of total asset financed by the firm
creditors. Debt ratio = total liabilities/ total assets
Table Debt Ratio (Rs. In thousand)
2014 2013
Total liabilities 87430070 81036219
Total Assets 179573660 181908478
Ratio 0.48 0.44
Interpretation
The higher this ratio the greater the firms degree of indebtness and the more
financial leverage it has.
debt ratio
0.49
0.48
0.47
0.46
0.45 0.48
0.44
0.43 0.44
0.42
2014 2013
 Times interest earned ratio
Times interest earned ratio measure the firm ability to make contractual
interest payment. Times interest earned ratio = EBIT / Interest
Table Times interest earned Ratio (Rs. In thousand)
2014 2013
EBIT 8011529 19837637
Interest 295193 346477
Ratio 28.14 58.26
Interpretation
A high ratio suggests that the company would have little difficulty meeting the
interest payments on its loans. Conversely , a low ratio is an indication that the
company is overextended in its debts . Although low to moderate levels of
debt can boost a company’s financial performance.
Times Interest Earned Ratio

70
60
50
40
30 58.26
20
28.14
10
0
2014 2013
Profitability Ratios
Ratios that relate profits to sales and investment are called profitability ratios8.
It is of two type i.e. profitability in relation to sale & profitability in relation to
investment.
 Gross Profit Margin
It is calculated gross profit divided by net sales. This ratio tells about the profit
of the firm and is also a measure of the ability of the firm’s operation.
Table Gross Profit Margin (Rs. In thousand)
2014 2013
Revenue 81512598 81061355
Gross profit 25829875 27987403
Ratio 92.29% 34.52%
Interpretation
The ratio calculated 92.29% in 2014, 34.52% in 2013 indicating that PTCL is
effective in producing and selling product and services well above the cost.
This trend of decrease in the GP margin is because of decrease in revenue
and because of increase in operating cost. Decrease in revenue is because of
decline in tariff while increase in operating cost is partially because of inflation

and inefficiency caused by the period of uncertainty due to privatization.
Gross Profit Margin

100
90
80
70
60
50
92.29
40
30
20
34.52
10
0
2014 2013
 Operating Profit Margin
Operating Profit Margin measures the percentage of each sales dollar

remaining after all costs and expenses other than interest , taxes and
preferred stock dividends are deducted; the “pure profits” earned on each
sales dollar.
Operating Profit Margin = Operating Profits/ Sales
Table Operating Profit Margin (Rs. In thousand)
2014 2013
Revenue 81512598 81061355
Operating profit 4507563 15969824
Ratio 5.52% 19.70%
Interpretation
The Operating Profit Margin Ratio is better because the ratio calculated 5.52%
in 2014, 19.70% in 2013 is effective.
Operating Profit Margin Ratio

25
20
15
10 19.7
5.52
0
2014 2013
 Net Profit Margin
Net Profit Margin measures the percentage of each sales dollar remaining
after all costs and expenses including interest , taxes and preferred stock
dividends have been deducted.
Table Net Profit Margin (Rs. In thousand)
2014 2013
Revenue 81512598 81061355
Net profit 5207494 12696133
Ratio 6.4% 15.66%
Interpretation
For PTCL in 2014, 6 paisa out of every sales of Rs.1 constitutes after tax profit
where as in 2013 it was 15paisa. The net profit margin is a commonly cited
measure of the firms success with respect to earning on sales.
Net Profit Margin Ratio

18.00%
16.00%
14.00%
12.00%
10.00%
8.00% 15.66%
6.00%
4.00%
6.40%
2.00%
0.00%
2014 2013
Series 1 Series 2 Column1
 Earnings per Share
Earnings per Share = Earnings available for common stockholders/Number of

shares C.S. outstanding
Table Earning per share (Rs. In thousand)
2014 2013
Share Capital 5100000 51000000
Net profit 5207494 12696133
Ratio 1.02 2.49
Interpretation
The earning per ratio in 2014 is 1.02 and in 2013 is 2.49 because net profit in
2013 is more
Earning per share

3
2.5
1.5 2014 2013

2.49
Net profit after 5207494 12696133
1
taxes
0.5 1.02Assets
Total 179573660 181908478
0 Ratio 2.89% 6.97%
2014 2013
 Return on Total Assets
It is calculated as net profit after taxes divided by total assets. This ratio shows
the percentage income generated on per rupee investment.
Table Return on Total Assets (Rs.in thousand)

Interpretation
Return on investment in 2014 is 2.89% that is a profit over the firm’s

investment resulting from its operations. It explains that the firm has earned a
2.89% over each rupee invested in 2007. ROI in 2013 is 6.97 respectively
Return on Total Assets

8
4
6.97
3
2
2.89
1
0
2014 2013
 Return on Common Equity
Return on common Equity measures the return earned on the common stock
holders’ investment on the firm.
Table Return on Equity (Rs. In thousand)
Interpretation
In 2013 ROE was 12.58% and in 2014 it is 5.65%. The trend is negative and
decreasing continuously. The debt ratio is not too high which means that there
are strong investment opportunities. And there is effective expense
management but
2014 2013 PTCL will have
to Net profit 5207494 12696133 control its
Shareholder’s equity 92143591 100872259 decreasing trend
of Ratio 5.65% 12.58% ROE.
Return on Equity
14
12
10
6 12.58
4
5.65
2
0
2014 2013
SWOT ANALYSIS
STRENGTHS
PTCL enjoys monopoly State Of the Art International Gateway

Exchanges & Satellite Earth Stations. PTCL have largest network with its
state of art technology and new digital exchanges. These are the few
important characteristics of PTCL network.
 It is the largest and oldest company of Pakistan
 International Submarine Cables

 High Capacity National Fiber Optic Backbone Ring
 36 Transit Exchanges with easy Facility of Expansion
 About 99% Digitization of Country Network
 Strong Platforms & Exchanges for Value added Services
 Up to date technology
 Monopoly over the local market
 Skilled Human Resource
 Innovative policies
 Availability of infrastructure
 Liberal policies for IT investments
 High profits
 Power to make policies
 Large network
 Globally recognizable
 Good Credibility
 PTCL has a strong research and development department
 Nationwide reach
 Good market reputation in the stock exchange
WEAKNESSES
 Image – Government organization

 Conflicts
 Lack of Customer focus
 Customer Dissatisfaction and Delayed Responses
OPPORTUNITY
 Growth in telecommunication industry

 Innovation
 Introduce new technology
 Privatization & liberalization
 Market Size
THREATS
 Strong competitors
 New cellular companies
 Internet USB offers by different mobile company such as Telenor and
Mobilink
 Effect on Market Share Due To Competition
 Internet offers by different mobile company is another threat to the DSL
Service by PTCL
CONCLUSION
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 fibre access network in the major Politian centres of
Pakistan and local loop services have started to be modernized and upgraded
from copper to an optical network on the long side and international
infrastructure side, the capacity of two SEA-MEWE.
Submarine cable is being expanded to meet the increasing demand of
international traffic PTCL should immediately change its finance upper level of
hierarchy and should streamline in the good manner. PTCL encourage the
billing online system that each and every customer has to pay his/her bill
online basis.
The system of E-payment which although exist in PTCL finance system but
there is need of improvement facility.
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 and 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 centres in remote areas.
Recommendations
Keeping in view the recommendations hurdle / problems the following are

some remedial measures, which help to create a better system.
 This study shows that
 There are very few programs for career development of the employees.
People working in one section or department from years are still with
the same knowledge and style of doing job. There should be proper
career planning of employee that not only sharpens the skills of the
employee & improve its efficiency but also results in better and
improved output for the organization.
 Existing system is not up to the slandered and must be replacing with an
efficient one.
 A comprehensive financial information system is required to be
streamlined, so that availability of accurate data records may be
insured.
 All the tool of enforcement of strict financial discipline may be under taken
in order to monitor the whole system.
 All the records should be computerized and for this purpose special
computer program should be used.
 Employees should be equipped with up to date IT skills and for this
purpose refresher & training courses should be designed.
 The officer may be trained to adopt company culture soft-spoken, good
relations with customers and target oriented.
 Finance and marketing offices and engineers may be sending to
international seminars/ workshops to get knowledge of new technique
and procedures.
 There should be effective human resource department in order to get

right people on the right job. Promotion should be made the basis of
performance rather than seniority.
 Most of the PTCL personnel are non-professional; I suggest that the
competent authority of PTCL should be appointing professionals.
 There should be effective human resource department in order to get
right people on the right job.
 Over staffing and unbalanced distribution of employees in departments.

Like all the government and semi government institutions PTCL has
also excessive staff than required. In order to increase the efficiency of
worker job is assigned to its caliper to develop his interest in work that
increase the output and decrease the overall cost of organization.
In the company there is an unnecessary emphasis on documentation. In

transitions a lengthy procedure of paper work is involved that decrease the
efficiency and results in wastage of time. It should be the duty of management
to automate the documentation of record on line to all offices at same time
Bibliography
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Conference Paper · January 2015

Syed Bilal Hassan

The user has requested enhancement of the downloaded file.

Prof. Muhammad Majid

Subject: Submission of internship report.

I am pleased to present to you the internship report made on Pakistan

Mention the Areas Covered by the Report

The report which I prepared highlights almost main contents of Pakistan

We made a thorough analysis of various aspects of the organizational work

Pakistan Telecommunication is the result of the efforts to promote and spread

After the partition of Indo-Pak subcontinent in1947, the areas that

In 1947, the Pakistan Posts and Telegraphs Department was attached

With the expansion of the postal and telecommunication services,

In 1990, PT & T department was transformed into a corporation and

titled as Pakistan Telecommunication Corporation. The objective of this

to provide greater autonomy and flexibility to the organization in achieving its

In December 1995, PTC was converted into a joint stock company

The Emirates Telecommunication Corporation (Etisalat) offered the

Overview of Historical Background

1947 Posts & Telegraph Dept. established

1962 Pakistan Telegraph & Telephone Department.

Pakistan Telecom Corporation

1995 About 5 % of PTC assets transferred to PTA, FAB & NTC.

1996 PTCL Formed listed on all Stock Exchanges of Pakistan

1998 Mobile & Internet subsidiaries established

2000 Telecom Policy Finalized

2003 Telecom Deregulation Policy Announced

2005 26 % Shares bought by Etisalat UAE through open bidding

Strategic vision is a roadmap of a company’s future, providing specifics about

To be the leading Information and Communication Technology Service

A company’s mission statement is typically focused on its present business

Pakistan Telecommunication Company Limited’s mission statement is stated

1 An organizational environment that fosters professionalism, motivation and

2 An environment that is cost effective and conscious.

3 Services that are based on the most optimum technology.

4 “Quality” and “Time” conscious customer service.

5 Sustained growth in earnings and profitability.

CORE VALUES OF PTCL

Values are general statements, procedures or understandings that guide or

1. To provide quality services to its customers in Pakistan.

2. To provide maximum satisfaction to its customers by using the

3. To increase the worth of owners.

4. To lead the telecommunication industry in Pakistan.

A. F. Ferguson & Co.,

The Directing Body of PTCL

The Chairman and the Board of Directors of PTCL are as:

Dr. Daniel Ritz Mr. YasirQadir Mr. Amjad Ali Khan

Ms. Farah Qamar

THE MANAGEMENT BODY OF PTCL

WalidIrshad President & Chief Executive Officer

Muhammad NehmatullahToor Chief Financial Officer (CFO)

Chief Human Resource Officer

Furqan Habib Quraishi Chief Marketing Officer (CMO)

Chief Digital & Corporate Service

Tariq Salman Chief Technical Officer (CTO)

Raed Yousef Ali Abdel Fattah Chief Information Officer (CIO)

Jamal Abdalla Salim Hussain Al

Farah Qamar Company Secretory

Executive Vice President (Legal

Products and Services

Pakistan Telecommunication Company Limited not only Provides

Home Product and services Business Product and services

HOME PRODUCT AND SERVICES