CHAPTER 2



introduction of the report

1. Introduction

As parts of the academic requirement for completing BBA-IT. The students are required to under go for two (2) months of internship with an organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge of the discipline of banking administration. This report is about PTCL was established in 1949 and since then, it has expended its network, becoming the largest commercial corporation of Pakistan. It offers different products of services to its customers.

1 Purpose of the report

The main purpose of the report in hand is together relevant information to compile internship report on PTCL .

To observe, analyze and interpret the relevant data competently and in a useful manner.

• To work practically in an organization.

• To develop interpersonal communication.

2 Scope of the report

As an internee in PTCL the main focus of my report research was on general operation procedures in one of the branches of PTCL.

Similarly different aspects of overall of PTCL are also covered in this report.

1.4 Objectives of the report

▪ Discuss thorough study of PTCL

▪ To understand the various operations and to equip with practical knowledge of the Pakistan Telecommunication Company Limited.

1.5 Limitation of the Report

Some thing is better than nothing. No matter how efficiently a report is conducted, it cannot be perfect in all respects. This study was conducted in accordance with the objectives of the report. The report may not include broad explanations of facts and figures due to the nature of the report. Secondly, the limitation, which affects the report, is the restriction on mentioning every fact of the PTCL due to the problem of secrecy of the PTCL. In addition, the availability of required data was a problem as all the documents and files are kept strictly under lock and key due to their strictly confidential nature. Thirdly, the problem of short time period also makes the analysis restricted as one cannot properly understand and thus analyze all the operations of PTCL just a very short time of eight weeks.

1.6 Benefit of the Report

The report done will benefit the finance students because the financial analysis section of this report comprehensively encompasses all respects of financial analysis. Furthermore,

PTCL Bannu branch may also benefit from the recommendations made at the end of the report.

1.7 Report Methodology

The report is based on my two months internship program in PTCL. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped me in this regards.

• Primary data:

Primary data include, Personal observation and Interviews of The Staff Members

• Secondary data:

Secondary data consist of Manuals, Journals, magazines, Annual Reports and Internet

CHAPTER#2

oveREVIEW OF Pakistan Telecommunication Company Limited (PTCL)

2.1 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

2.1.1 The Pakistan posts and telegraphs department (1947 to 1962)

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, production and repair of equipments etc, necessary for running of PT&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.

2.1.2 Pakistan telegraphs and telephone department (1962-1990)

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 EMD 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.

2.1.3 Establishment of Pakistan telecommunication corporation (PTC)

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.

2.1.4 Pakistan Telecommunication Company limited (PTCL)

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

2.1.5 Sale of 26% shares to Etisalat for $ 2.6 billion

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.

2.2 EMIRATES TELECOMMUNICATION COMPANY “ETISLAT”

Etisalat founded on 30th August 1976, the Emirates Telecommunication Corporation -Etisalat provides telecommunication services to the United Arab Emirates and is one of the leading service providers in the Middle East.

Etisalat is embracing new technology, new philosophies and new ways of doing business. Their new corporate logo and identity is a catalyst to this change. The identity has green background, which signifies solidity, inspires confidence and denotes Etisalat the mother brand.

The red dot represents technology and the world of communication. The 3 curve featured in the design not only represent the letter ‘E’ which stands for Etisalat and the emirates but also signifies an entity that is growing outside its boundaries and expanding into strategic business locally and internationally. The red dot and the curve together represent the image of a stylized of a stylized “human” entity reaching out for excellence in service levels, receptive to new ideas and philosophies in a world of dynamic change.

Etisalat deals in voice communication, wireless communication and data communication. Etisalat was one of the first to introduce mobile telephones in the Middle East in 1982 and launched the GSM service in September 1994.

Etisalat celebrated its 25th anniversary in September 2001. The telecommunication services they have been providing match the highest standard in the industry.

Etisalat was the highest bidder for the acquisition of 26% stake in PTCL. This latest win reflects the determination of Etisalat to strengthen its position as the leading telecommunication in the region. On 10th December 2007 the government has signed an agreement with Etisalat to handover the management of PTCL to them. This latest acquisition further positions Etisalat amongst the leading international telecom players worldwide. Etisalat offers world-class standards in customer service and state-

of-the-art technology wherever it operates, a very attractive proposition for strategic partnership and alliances

2.3 MISSION STATEMENT OF PTCL

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 statement is stated as

1. An organizational environment that fosters professionalism, motivation and quality.

1. An environment that is cost effective and conscious.

2. Services that are based on the most optimum technology.

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

4. Sustained growth in earnings and profitability.

2.4 STRATEGIC VISION OF PTCL

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 create4. Strategic vision of Pakistan Telecommunication Company is “to be the leading ICT service provider in the region by achieving customer’s satisfaction and maximizing shareholders value.

2.5 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

1. Customer Satisfaction

2. Teamwork

3. Company loyalty

2.6 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.

1. To provide maximum satisfaction to its customers by using the latest technology.

2. To increase the worth of owners.

3. 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 T, Govt of Pakistan.

2.7.4 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.

CHAPTER#3

ORGANIZATIONAL STRUCTURE OF PTCL

Organization is the end result of organizing. So organizing is the part of management that involves establishing intentional structure of roles for the people to fill an enterprise. It is process of breaking down the overall tasks of an enterprise into individual assignments/activities and then getting them put together in units, departments or in groups along with the delegation of authority to the manger. Organizational structure implies a formalized intestinal structure of roles/positions.

A well-developed and properly coordinated structure is an important requirement for the successful operation of any organization. It provides the basic framework with in which functions and procedures are performed. In PTCL the functions of planning and policy formulation are carried out by the Board of Directors whereas the management of the organization is carried out by the executive management.

Organizational Chart

[pic]

3.1 Management

 WalidIrshaid

President & Chief Executive Officer

Ali Ahmed Yarouf Al Naqbi

Deputy CEO PTCL

Muhammad Nehmatullah Toor

S.E.V.P (Finance) / Chief Financial Officer (C.F.O)

Yasir Ansari

Chief Information Officer (C.I.O)

Mohammad Nasrullah 

Chief Technical Officer (C.T.O)

Syed Mazhar Hussain

S.E.V.P (HR / Admin & Procurement)

Sikandar Naqi

S.E.V.P (Corporate Development)

Naveed Saeed

S.E.V.P (Commercial)

Mr Tariq Salman

S.E.V.P (Business Zone North)

Mr Abdullah Yousef

S.E.V.P Business Zone South

Farah Qamar

Company Secretary

Legal Affairs

Dr.Syed Mohammad Anwar Shah

3.2 Board of Director

It is the highest body of PTCL, which has been vested with the function of policy formulation. The first Director was elected by the subscribers in their first meeting. Under the rules, the directors appointed are not being less than sever in numbers.

There is general body meeting once a year of all the shareholders to elect the members of board of directors. A director once elected, holds office for a period of three years unless he resigns, becomes disqualified from being a director or otherwise ceases to hold office. A retiring director is eligible for re-election.

Presently the board of directors has Ten members, As follow

| Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani |

|Chairman & Chief Executive Officer,  |

|Etisalat International Pakistan L.L.C  |

|Executive Vice President Contracts & Administration  |

| |

| |

| |

| |

| |

|Etisalat, UAE. |

| Mr. Salman Siddique |

|Secretary (Finance), Ministry of Finanance |

|Government of Pakistan,  |

|Islamabad  |

|Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh |

|Chief Human Resources Officer |

|Etisalat, UAE |

| Mr. Mushtaq Ahmad Bhatti |

|Member Telecom |

|Government of Pakistan, |

|Islamabad |

|Mr. Fadhil Mohamed Erhama Al Ansari |

|Executive Vice President Engineering |

|Etisalat, UAE |

|Mr. Khursheed Ahmed Junejo |

|Ambassador, Embassy of Pakistan |

|Abu Dhabi, UAE |

|Mr. Abdulaziz Hamad Omran Taryam |

|General Manager, Northern Emirates |

|Etisalat, UAE |

| Dr. Ahmed Al Jarwa |

|General Manager |

|Real Estate |

|Etisalat, UAE |

| |

|Ms. Farah Qamar |

|Company Secretary PTCL |

|PTCL Headquarters,  |

|Islamabad |

3.3 PRODUCTS AND SERVICES

After the deregulation of the telecommunication sector PTCL has brought a lot of variety in its products and services to face the challenging task in the new environment in order to sustain profit margin at the current level. PTCL is trying to improve its products and services and make it more cost effective for the customers. The product and services that PTCL is providing to its customers are as follows.

3.3.1 Prepaid calling cards

PTCL prepaid calling cards gives nation wide 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 features5.

3.3.2 Aasan prepaid telephony

Aasan phone is a landline prepaid telephony service, launched in May 2004. This service works just like the other prepaid services where accounts are recharged with a prepaid phone card. The prime objective of this service is to facilitate the customer in getting a new connection with minimal documentation. Aasan cards are available in Rs.500, 1000 and Rs.2000 denominations.

3.3.3 Toll Free Service (0800)

This service is available to corporate customers for their customer’s convenience. It provides corporate customers with effective and dynamic telemarketing tool. Telemarketing is becoming the most popular way of marketing around the world as selling products and services on the phone is the most economical i.e. you reach more customers in minimum time. Toll free numbers start with 0800. Customers can call the company on toll free number with out any cost.

3.3.4 Universal Access Number (UAN)

UAN allows the customers to call different offices of a company in the different cities by the same number. UAN consists of six digits preceded by three digit code of 111, common to all UANs e.g. 111202020. UAN operates on existing telephone connection without disturbing normal phone number. UAN service is ideal for organizations engaged in marketing of products or services. UAN enables quick and easy access to make queries and complaints, increases customer satisfaction. It is time saving, convenient and cost saving for customers. PTCL has the policy of “First come, first served” i.e. customers can choose UAN of their own choice which is simple and memorable. UAN service is available in 50 major cities of Pakistan.

For installation of UAN one has to fill a form and submit it to that very office. Its installation fee for one office is Rs.20, 000, 40,000 for two offices and 60,000 for three offices while further 15,000 for additional office. Customer has to pay its recurring charges in advance on quarter basis i.e. Rs.3000 per quarter per office.

NTR-1 has shown billing of Rs.255, 000 for the last quarter of 2006 from 36 customers.

3.3.5 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.

Installation charges for UIN is Rs.20, 000 while recurring charges are received in advance on quarter basis at Rs.3000 plus 15% GST per quarter per number. NTR-1 has shown billing of Rs.255, 000 while received Rs.96, 000.

3.3.6 Premium rate service (0900)

0900 numbers are used throughout the world to provide information via telephone at a premium rate higher the regular call charges. In case of these calls 60% of the total revenue goes to the company called while 40% is transferred to PTCL.

3.3.7 Virtual Private Number (VPN)

VPN is another service that provides convenience to corporations and business with multiple-location offices or branches. Users of VPNs can establish private net works

on PTCL lines without having to install their own dedicated network resources. PTCL’s installed capacity for VPNs by the end of Jun 2005 was 1000 lines while 978 lines were provided to 65 customers.

3.3.8 ISDN (BRI/PRI)

Broadband services to household and small medium sized organizations are also provided through Integrated Service Digital Network (ISDN). It transfers the data in digital form. This service has now been available for some time and its users are benefiting from the

Advantageous features like faster data communication, high-speed Internet and clearer voice through International Gateway Switches installed at Islamabad and Karachi.

Basic Rate Interface (BRI) has three channels, two for the data transfer and one for security. PTCL charges only for 1.5 channels at the rate of Rs.174 per channel.

Primary Rate Interface (PRI) has 30 channels for data transfer and PTCL charges ISPs only for 20 channels at the rate of Rs.174 per channel. The rest 10 channels are their sole profit.

There are two types of charges in case of PRI

1. Hunting charges:- At the rate of Rs.25 per channel i.e. 25*20=Rs.500 per PRI

1. Rent charges:- At the rate of Rs.174 per channel i.e. 174*20=Rs.3480

15 % general sales tax is charged on the above two charges. And if an ISP doesn’t pay their dues before due date, is charged for 5 % surcharges on the current dues.

3.3.9 Digital Subscriber Line (DSL)

DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax and Internet facility without keeping their normal telephone number busy. Customer can enjoy voice chat from telephone with high speed. It is of different band width 64kbps, 128, 256 and of1024kbps. PTCL does not sells this directly to the ultimate customers but sell it to the ISPs like Paknet, Comsat, Micronet, Cybernet, Dancom etc. PTCL charges ISPs on the basis of their customers. PTCL charges either Rs.217 per connection per month from ISPs when they give connection or 5 % of the total bill for which ISPs charge their customer depending upon the contract signed between PTCL and ISP. In the second case the ISP is required to send a copy of all the customers’ bills to the PTCL revenue department.

3.3.10 Digital Cross Connect (DXX)

DXX service is used for data connectivity. PTCL charges their customers in advance on the quarter basis. PTCL charges their customers for three types of charges.

1. Equipment charges: - PTCL charges for Rs.3636 for DXX of 64kbps and Rs.7272 for 128kbps or 192kbps.

1. Line charges: - PTCL charges Rs.142 per annum per km for 64kbps, Rs.277 per annum per km for 128kbps and Rs.350 per annum per km for 192kbps.

Installation charges for DXX are Rs.50, 000 for 64kbps, Rs.100, 000 for 128kbps and for 192kbps.

3.3.11 Local lead

Local lead is used for data transfer. PTCL charges yearly billing of Local Lead. PTCL charges Rs.1440 per annum per km i.e. Rs.120 per month per km. Its billing format is

Total dues=no of PRIs*120* no of months*distance in kms+15% GST

3.3.12 2MB

PTCL charges Rs.2536 per annum per kilometer. A customer is charged by the formula

Total dues= 2536/12 *no of months *distance in km+15% GST

Its billing is also received quarter wise. 2MB bill contains details like name & address, name of circuit, installation Date, Circuit speed, Distance in km and period of billing.

3.4 DIGITAL FACILITIES

3.4.1 Call waiting

Through this facility a customer during conversation can hear a beep indicating that another call is coming. A new incoming call can be attended by tapping which will put present call on hold, and next incoming call can be attended. This service can be availed free of cost through dialing customer access point by UAN 111465465.

3.4.2Code barring

Customers can prevent misuse of their telephone with the help of code barring facility. This can be changed by the customer if need arises. Customers can activate and deactivate this facility from their telephone sets.

3.4.3 Call transfer

3.4.3.1 Immediate Transfer

A customer with this facility may transfer his calls to another predefined desired number. A change in dial tone will be observed.

3.4.3.2 Call Transfer on Busy

In case the customer number is busy, an incoming call will be transfer automatically to another predefined specified number.

3.4.3.3 Call Transfer on No Reply

In case there is no reply, call will be transferred automatically to another predefined desired number.

In such cases Customer is required to feed desired telephone number on which call transfer is required. The facility can be activated through a written application to the concerned DE Phones along with copy of NIC.

The customers can activate or deactivate the facility from their own telephone sets. It is offered free of cost by PTCL.

3.4.4 Abbreviated dialing

Dial a short number (single digit) to get desired number. A maximum of 10 such numbers can be registered. The facility can be activated through a written application to the concerned DE Phones along with copy of NIC. The customers can activate or deactivate the facility from their own telephone sets. PTCL charges Rs.25 per month for this facility.

3.4.5 Absent Customer

A customer with this facility may inform the calling person about his non availability at the home or office. This calling person will get an announcement or a special tone. The facility can be availed at the cost of Rs.25 per month through a written application to the concerned DE Phones along with copy of NIC. The customers can activate or deactivate the facility from their own telephone sets.

3.4.6 Caller Line Identification (CLI)

CLI allows you to identify the caller before picking up the phone. The customer can check obnoxious calls and can keep the complete record of all incoming / outgoing calls with time and date to take any action. This facility can be obtained by dialing

UAN 111 465 465 and where this number is not available, by contacting the concerned DE Phones. PTCL charges Rs.30 per month for this facility.

3.4.7 Don't disturb

Activating of this facility will stop all incoming calls for a pre determined time slot. This will allow customers to be in peace if he does not want to be disturbed during such time. The caller will get a pre-recorded message. The facility can be availed through a written application to the concerned DE Phones along with copy of NIC. PTCL charges Rs.25 per month for this facility. The customers can activate or deactivate the facility from their own telephone sets.

3.4.8 Hot line

This service enables customer to be in contact just by lifting the handset and without dialing the number. System automatically dial a preprogrammed number (after 5 seconds delay), most appropriate for frequently dialed numbers. The facility can be activating through a written application to the concerned DE Phones along with copy of NIC. The customers can activate or deactivate the facility from their own telephone sets. It costs Rs.25 per month to the customers.

3.4.9 Wake up

Ringing of a Customers telephone is initiated automatically at the fixed time. In case Customer does not answer the ring at the first offering, subsequent rings will follow after five minutes. You can obtain this by dialing 14.each time you dials it, One Local call is charged at the rate of Rs.2.01.

3.5 MARKETING STRATEGIES

3.5.1 Marketing position

PTCL is a market leader in the telecommunication industry. It holds the largest market shares. Till January 2003 PTCL had monopoly in the telecommunication industry, but in

January 2003 the deregulation policy of Government; gave an end to the PTCL monopoly.

Calling Line Identification (CLI) allows you to identify the caller before picking up the phone. For a customer to enjoy this service needs a telephone set with display capability. CLI keeps complete record of outgoing and incoming calls with time and date.

3.5.3.5 Internet Accessibility

Ufone is the subsidiary of PTCL. In mobile phones Ufone was the first to provide internet accessibility through GPRS. One can send and receive a message through Ufone by e-mail address.

CHAPTER#4

OVEREVENUE OFFICE BANNU OF PTCL

4.1 Introduction

NWFP has been divided in two regions i.e. NTR-I and NTR-II while NTR stand for northern telecom region. Regional office Bannu comes under NTR-II. Other areas in NTR-II are D.I.khan, revenue office, thall revenue Office, and revenue office kohat.

Before 1992, all the exchanges of Bannu region worked under regional office D.I. Khan NTR-II (northern telecom region-II). In 1992, a camp has been established in Bannu which provide telecom services to the people of Bannu. In 1993, formal revenue office has been established in Bannu.

There are four sub-divisions of revenue office Bannu which are lakki sub-division, karak sub-division, North Waziristan sub-division, and Bannu sub-division.

There are nine exchanges which work under Bannu sub-division which are discussed in the NTR-II organizational chart in detail.

4.2 Regional hierarchy

Northern Telecom Region-II

4.3 Bannu Revenue Office Organizational Chart

4.4 Revenue Office Members

• Revenue Officer => Qazi Ishfaq-ur-Rehman

• Senior Account Clerk=> Moh: Anwar Khan

• Senior Account Clerk=>Aminullah Khan

• Office Assistant => Latifullah Khan

• Junior Account Clerk=> Khalid Javeed

• Telephone Operator=> Mohammad Usman

• Naib Qasid=> Habibullah Khan

4.5 Products and Services of Revenue Office Bannu

The product and services that revenue office Bannu is providing to its customers are as follows.

• Prepaid calling cards

PTCL prepaid calling cards gives nation wide 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.

• Aasan prepaid telephony

Aasan phone is a landline prepaid telephony service, launched in May 2004. This service works just like the other prepaid services where accounts are recharged with a prepaid phone card. The prime objective of this service is to facilitate the customer in getting a new connection with minimal documentation. Aasan cards are available in Rs.500, 1000 and Rs.2000 denominations.

• Toll Free Service (0800)

This service is available to corporate customers for their customer’s convenience. It provides corporate customers with effective and dynamic telemarketing tool. Telemarketing is becoming the most popular way of marketing around the world as

selling products and services on the phone is the most economical i.e. you reach more customers in minimum time. Toll free numbers start with 0800. Customers can call the company on toll free number with out any cost.

• 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.

Installation charges for UIN is Rs.20, 000 while recurring charges are received in advance on quarter basis at Rs.3000 plus 15% GST per quarter per number. NTR-1 has shown billing of Rs.255, 000 while received Rs.96, 000.

• Premium rate service (0900)

0900 numbers are used throughout the world to provide information via telephone at a premium rate higher the regular call charges. In case of these calls 60% of the total revenue goes to the company called while 40% is transferred to PTCL.

• Digital Subscriber Line (DSL)

DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax and Internet facility without keeping their normal telephone number busy. Customer can enjoy voice chat from telephone with high speed. It is of different band width 64kbps, 128, 256 and of1024kbps. PTCL does not sells this directly to the ultimate customers but sell it to the ISPs like Paknet, Comsat, Micronet, Cybernet, Dancom etc. PTCL charges ISPs on the basis of their customers. PTCL charges either Rs.217 per connection per month from ISPs when they give connection or 5 % of the total bill for which ISPs charge their customer depending upon the contract signed between PTCL and ISP. In the second case the ISP is required to send a copy of all the customers’ bills to the PTCL revenue department. In Bannu area there are 10000 connection

4.6 Billing System of Revenue Office Bannu

Revenue office Bannu issue three types of bills i.e original bill, duplicate bill and defaulter bill. These are briefly discussed here;

1. Original Bill

Oringle bill is that bill which issue first time. The total billing of bannu division are one core, but received only 78lac the remaining become defaulter and some of them not submit there bill in time.

2. Duplicate Bill

If the original bill is not received by the customer due to some reason then the customer is requires to submit a complaint in revenue office Bannu. The customer service manager fills a duplicate bill manually for the customer. The customer then makes payments on the bill in the concerned bank branch.

An example of the duplicate bill is given here;

CHAPTER# 5

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 and makes `

There are several aspects on which departmentalization in an organization can be based. The division can be done on the basis of function, product, customers or geographical locations.

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.

1. Finance Dept.

1. Commercial Dept.

1. Operational Dept.

1. Technical Dept.

1. IT Dept.

1. Corporate Affairs Dept.

1. Special Projects Dept.

5.1 Human resource management

1. It is a huge organization and being considered as one of the biggest company in Pakistan.

1. It has more than 56,000 employees and a huge network of organizational management has been spread throughout the country.

1. PTCL is engaging a substantial number of experts and specialists of standing caliber in different spheres of profession.

4. Job analysis and revision of jobs description was undertaken for improving the performance standards.

4. 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.

4. Special training courses and workshops have been conducted for the top and middle management through reputed organizations like UST Bannu.

4. 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

5.2 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

5.3 Commercial Department

1. Commercial section with qualified/experienced staff is being established.

1. 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.

1. 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.

1. The Company likes to reiterate that it will continue to play a prominent role in Telecom sector of Pakistan.

1. 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

5.4 Operational Department

Manages operations of PTCL HQ, with regional offices, branches, and, subsidiaries as well as with other corporations.

5.5 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.

5.6 IT Department

This department is established to introduce new and advance technology in PTCL. Due to IT department working system is to converted in a computerized system.

5.7 Corporate Development Department

This department deal corporate level issues such as PTA, International Telecom Union, Legal and Regulatory affairs etc.

5.8 Special Projects Department

This department is doing their activities on behalf of president.

5.9 STRUCTURE OF THE FINANCE DEPARTMENT

Initially, Finance Department was supervised by GM but after the recent change in management structure, Finance Department of PTCL is headed by Senior Executive Vice President (Finance), who is responsible for accounting and finance functions of the organization. The Senior Executive Vice President is the head of Accounts Department and the Vice Executive President Finance is the head of Finance Department.

Diagram 5.1

[pic]

1. Senior Vice Executive President (Finance)

1. Executive Vice President (Accounts)

1. Executive Vice President (Finance)

1. Executive Vice President (Revenue)

1. General Manager (Store)

1. General Manager (Accounts)

1. General Manager (Finance)

1. General Manager (Revenue)

5.9.1 Number of employees working in the finance department

Total number of employees working in PTCL Finance Department and its attached offices is about 7500. Each regional office has the following Finance & Accounts wings:

Deputy General Manager (Finance) 1

Director (Accounts) Revenue 2

Director (Recovery) 1

Assistant General Manager (Finance) 1

Senior Revenue Officers 9

Revenue Officers 18

Assistant Accounts Officer 3

5.10 Functions of Finance Department

1. Finance system of the organization

1. Accounting system of the organization

1. Mobilization of funds

1. Generation of funds

1. Allocation of funds

5.11 Finance System of the Organization

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.

5.11.1 Finance Wing

G.M Finance heads this department. The responsibilities of the General Manager (Finance)usually fall in the area 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.

5.11.2Budget Wing

Budgeting is the most effective instrument to exercise quality control over the financial resources of an organization and their better utilization. A budget is a comprehensive financial plan setting forth the expected route for achieving the financial & operational goals of an organization. The companies engaged in large-scale business essentially have a budget department to carry out budgeting for the coming financial year. Various functions performed by Budget Dept. of PTCL are:

* Allocation of funds to different head of accounts.

Disbursement of funds or physical transfer of funds to different heads

of accounts.

* Receive and analyze budget reports.

* Recommended actions designed to improve efficiency where

necessary.

5.13 SALES OF SHARES

Issuance of shares is the second basic source for mobilization of funds. PTCL has issued capital in form of following two types of shares:

Authorized Share Capital

Ordinary ‘A’ Class Shares of Rs.10/- each. 111,000,000,000

Ordinary ‘B’ Class Shares of Rs.10/-each. 39,000,000,000

Total 150,000,000,000

1. “A” ordinary shares carry one vote

1. “B” ordinary shares carry four votes

5.14 Generation of funds

An organization can be called self sufficient if it is producing its maximum cash flow from operating activities. The table and given below chart for last five years data indicate that PTCL is producing maximum of its cash flows from operating activities.

|Year |Total Revenue (in thousands) |

|2002 |62,040,708 |

|2003 |66,426,624 |

|2004 |67,202,493 |

|2005 |74,124,000 |

|2006 |75,972,000 |

|2007 |69,085,436 |

|2008 |65,277,025 |

The main sources of funds in PTCL are its collection of bills. Funds generated

through operations for the last five years are Rs.315,660,954 (in thousands).

5.15 EXTERNAL BORROWING

Another source of funds to meet the needs for short-term financing in PTCL is external borrowing from commercial banks4. PTCL takes loans from the following commercial banks:

|•1 A Deutsche Bank. •2 BN AMRO Bank •3 Muslim Commercial Bank |•7 Citibank N.A. •8 Faisal Bank Limited. •9National |

|Limited. •4 Standard Chartered Grind lays Bank Limited. •5 HBL •6 |Bank of Pakistan •10Union Bank. •11. PICIC |

|UBL | |

5.16 ALLOCATION OF FUNDS

The funds generated are mainly utilized to finance the operation, to pay back short-term loans for capital expenditure, pay dividends and to create reserve (un-appropriated profits).

CHAPTER # 6

SWOT ANALYSIS

PTCL is a big organization regarding all the departments including Finance, Operations, Human resource etc. there are several & weakness of these departments, which will be discussed as follow:

6.1 STRENGTHS

THE BIGGEST FOREIGN EXCHANGE EARNER

PTCL is the biggest source of foreign exchange for Pakistan. It earns a lot foreign exchange form its international traffic.

ADEQUATE FINANCIAL RESOURCES

PTCL earns billions of Rupees as a major source of capital. These adequate financial resources not only enable the company to copy with any unexpected event but to deploy its resources to increase product line and services without feeling any financial difficult.

FREE FROM COMPETITIVE PRESSURE

PTCL has no competitor in the market and other companies are legally not allowed enter in competition with PTCL before 2003.So PTCL is performing its activities freely without any pressure.

LEADERSHIP IN THE MARKET

PTCL is leading Company to provide telecom facilities in the Pakistan. PTCL aims at using the latest technology in the field of engineering and IT for its services. It is also getting constancy from international Companies in order to remain leader in telecom sector.

DEQUATE FINANCIAL RESOURCES

PTC learns billion of rupees as profit per year and has enough money in its general reserve. It also has debit as a major source of capital. These adequate financial resources not only enable the Company to cope with any unexpected event but no

RECRUITMENT

PTCL can also improve the human resources by the selection of competent person for different departments and this can only possible by discouraging the corruption and favoritism.

ADDITION TO THE PRODUCT LINE

Top management of Organization can make additions to its existing product line by providing more services. In this way it can increase its revenue and customer satisfaction. This requires market research.

PTCL has already captured the industry so all kind of the opportunities are for PTCL till the end of monopoly.

6.4 THREATS;

EXCHANGE RATE RISK

Exchange Rate Risk will cause PTCL net exchange loss on foreign loans. Devaluation of rupees will increase the cost of production, machinery, and almost all the equipment,

imported from foreign countries. So exchange rate risk will affect the Profitability of PTCL and also increase the risk of getting foreign loans in future.

GOVERNMENT LEGISLATION

Government policies can affect the performance of PTCL. Hence government policies will be a real threat for PTCL if they are not in favor of PTCL business activities. This can affect the recruiting policies of PTCL.

TURNOVER

At the end of the monopoly, competitors will enter the industry and the completion will increase as a result of which they will offer high pays and facilities to skill-person of the industry. This can increase the turnover of PTCL, which can create a serious threat for the organization.

| |Strength (s) |Weaknesses (w) |

| | |Insufficient Human Resource |

| |Newly launched products |Only seniority based promotion |

| |Monopolistic position |Lake of training program |

| |Skillful Human resources |Lack of customer focus |

| |Adequate financial resources |Old age employees |

| |powerful R &D |Lack of aggressive marketing |

| |Leader of the market |Ineffective marketing dept |

| |Governmental support |Customer dissatisfaction |

| |Large earnings |Delayed responses |

| |Best policies |Lack of customer services |

| |Best employees compensation | |

| |Latest technology | |

| |Wide coverage | |

| |Quality of services | |

|Opportunities (O) |(S-O) |(W-O) |

| |launch new products glancing the high demand |increase personnel |

|Growing demand |(S1,2- O1) INTENSIVE |(W1,O1) intensive |

|Market development |develop market share on the basis of skillful |start aggressive marketing |

|Market penetration |HR |(W6,O2, 3) intensive |

|Launch of new products |(S3,O2,O3) INTENSIVE | |

|Growth in telecom industry |could launch new products formula through | |

|Customer awareness of technology |proper research | |

|Value Added Services |(S5,O4) intensive | |

|Growing DSL customers | | |

|Threats (T) |(S-T) |(W-T) |

|Downsizing |Buy new machinery |arrival of new competitors |

|Exchange Rate Risk |(s4,T6)defensive |(T5,W1,7) |

|Law and order situation |(S2,T5) integration |(w2,3, T1) |

|Political situation | |(W8,9,10-T7) |

|Arrival of new competitors in the market| | |

|up-to-date technologies of competitors | | |

|Migration to satellite and cellular | | |

|telephony | | |

CHAPTER# 7

PROBLEMS AND RECOMMENDATIONS

PROBLEMS

The over all performance of PTCL has been declining after privatization. The main signals of performance trend are summarized below:

1. There is an increasing trend in the revenue until 2006 after which it has declined significantly.

1. There is no further increase in the general reserve after the year 2005.

1. Operating profit margin shows increase in trend for years 2004, 2005, 2006 but it decrease for 2007 and further decrease for year 2006.

1. Operating cost for year 2006 was higher by 23% while for the year 2007 was 5.25% higher then last year,

1. Return on equity started decreasing after privatization, while amount of dividend, after decreasing in year 2006, raised in 2007 and again decreased in 2008

1. The property, plant and equipment of the company is in increasing trend

1. Debt to equity ration is increasing from 2006 to 2008.

Aside from the numerical performance indicators, PTCL took several steps to commence the journey to bring a culture charge in the organization. This entails putting greater focus on customer service and emphasizing merit, integrity and openness in the Company’s business practices and process. So there is a hope that numerical performance positive results in near future.

Moreover since the tele-density of mobile phones has grown a lot, so there are no further chance of huge increase in tele-density for mobile companies.

RECOMMENDATIONS

Keeping in view the aforementioned hurdle / problems the following are some remedial measures, which help to create a better system.

1. This report shows that existing system is not up to the standard and must be replacing with an efficient one.

1. A comprehensive financial information system is required to be streamlined, so that availability of accurate data records may be insured.

1. It is proposed that the system of funds allotment may immediately be discontinued and the Regional Offices may be allocated lump sum fund. This will surely help to speed up the execution of the work.

1. All the tool of enforcement of strict financial discipline may be under taken in order to monitor the whole system.

1. All the records should be computerized and for this purpose special computer program should be used.

1. Employees should be equipped with up to date IT skills and for this purpose refresher & training courses should be designed.

1. There should be a total computerized accounting system to save the precious time.

1. The officer may be trained to adopt company culture soft-spoken, good relations with customers and target oriented.

1. Finance and marketing offices and engineers may be sending to international seminars/ workshops to get knowledge of new technique and procedures.

1. 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.

1. Moreover, the element of corruption exists throughout the operation and finance department, which must be checked to get high performance.

1. Strategic planning and especially long term planning should be done in a way, which doesn’t only fulfill the requirement of today, but also those of future.

1. Most of the PTCL personnel are non-professional; I suggest that the competent authority of PTCL should be appointing professionals.

1. Almost all employees of PTCL are worried about their jobs the competent authority should immediately announce the policy of PTCL in this regard.

1. There should be effective human resource department in order to get right people on the right job.

2. Over staffing and unbalanced distribution of employees in departments. Like all

the government and semi government institutions PTCL has also excessive staff

3. 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 out put and decrease the overall cost of organization.

2. 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.

2. 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.

2. Some employees are working in the same department or section since they are appointed.

BIBLIOGRAPHY

1. C.James, W Achowied. 1999. Financial management 11th edition: printice Hall.

1. Hienz Weihrich and Harold Koontz. Management, 10th edition, New York: Mc Graw-Hill Inc.1994.

1. Annual Internship Report

1. PTCL Annual Report 2006.

1. PTCL Annual Report 2007.

1. PTCL Annual Report 2008.

1. PTCL Finance Department

1. Sekran, U.2000 Research Methods of Business USA. John Willey & Sons, Inc

1. Thompson S.L. strategic Management concept& cases, New Delhi Tata Megra-Hill publishing Company Ltd

2.

3.

4.

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Hawed (713)

Ghoriwala (589)

Jehangir Lalozai (713)

Director Revenue & Finance (Head)

R.O D.I Khan

R.O Bannu

R.O Thall

R.O Kohat

Bannu Sub-Division

Lakki Sub-Division

North Waziristan Agency

Karak Sub-Division

BNU-I (397)

Nurar (591)

Kakki (590)

Town (869)

NZB (584)

BNU-II (335)

Revenue Officer

Senior A/C Clerk

Senior A/C Clerk

Telephone Operator

Junior A/C Clerk

Office Assistant

Naib Qasid

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