PTCL Internship UOG
PTCL Internship UOG
PTCL Internship UOG
By
AASIM ALI
TO
University of Gujrat
(HAFIZ HAYAT CAMPUS)
Session 2013-17
DEDICATION
I dedicate this project to Almighty Allah, give us power, knowledge to complete this
report and to my much-loved Holy Prophet Muhammad (P.B.U.H). I will also
dedicate this achievement to dearly loved & kind parents
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ACKNOWLEDGMENT
With the name of Almighty Allah who is the most beneficent and the most merciful
whose blessings upon us are numerous and endless. I am much obliged to Allah
Almighty who gave me audacity and direction to complete this report. I would also
like to thank all the staff of revenue and collection department of PTCL, especially
Mr. Muhammad Ali, Mr. Muhammad Rizvi and Mr. Muhammad Aslam and all the
other staff of PTCL who helped me in doing my internee work. I am really thankful
to all those people who helped me to complete my task.
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3. Table of Contents
Contents
1. Title page………………………………………………………………………1
2. Dedication …………………………………………………………………….2
3. Acknowledgment … ……………………………………………………...….3
4. Executive Summary ……………………………………………………..……8
5. Introduction and Overview of the Organization (Part-I)
5.1 Introduction …….……………………………………………………….8
5.1.1 Introduction of report….………………………………………….9
5.1.2 Introduction of internship organization ….……………………….9
5.1.3 Scope of study…………………………….……...……………….9
5.1.4 Aim of study ……………………………….……………………..9
5.1.5 Objectives of studying the organization…….……………………10
5.2 overview of the organization …………………….……………………10
5.2.1 Brief history of organization………………….…….……………10
5.2.1.1 Pakistan post and telegraph……………..……….…….…10
5.2.1.2 Pakistan telephone and telegraph (PT&T)...…………..….10
5.2.1.3 Pakistan Telecommunication Corporation (PTC) ..….…..10
5.2.1.4 Pakistan Telecommunication Company limited …………11
5.2.2 Nature of the Organization…………………………………….…11
5.2.3 Business Volume……………………………………………........12
5.2.3.1 Awards and Success Stories……………………………...12
5.2.4 Products and Services …………………………………….........13
5.2.4.1 Services for Consumers ………………………………...13
5.2.4.1.1 New Telephone Connections …………………….…13
5.2.4.1.2 Value Added Services ……………………….……14
5.2.4.1.3 E-BILLPAYMENT ……………………………….…14
5.2.4.2 Services For Corporate Customers …………….………14
5.2.4.2.1 Universal Access Number (UAN) …………….……..14
5.2.4.2.2 Voice Messaging Service (VMS) ……………………15
5.2.4.2.3 Universal Internet Number (UIN) …………………15
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5.2.4.3 Main Products of company ……………………………..15
5.2.4.3.1 Broadband Pakistan …………………………….….. 15
5.2.4.3.2 V-Fone ………………………………………..……..15
5.2.4.3.3 PTCL Landline ……………………………………...15
5.2.4.3.4 PTCL 3G Evo Tab…………………………………...16
5.2.4.3.5 Ufone………………………………………………....16
5.2.4.3.6 EVO Wireless Broadband………………………........16
5.2.4.3.7 Smart TV ………………………………………….…16
5.2.4.3.8 Evo Charji ………………………………………….16
5.2.5 PEST analysis …………………………………………………17
5.2.5.1 Political Analysis…………………………………………17
5.2.5.1.1 Factors that creates Threats…………………………..17
5.2.5.1.2 Factors that creates opportunities…………………....17
5.2.5.2 Economic analysis……………………………………….18
5.2.5.2.1 Factors that creates threats……………………….…18
5.2.5.2.2 Factors that create opportunities……………………18
5.2.5.3 Social analysis ……………………………………..…..18
5.2.5.3.1 Factors creating opportunities…………………....…18
5.2.5.3.2 Factors creating threat……………………………...19
5.2.5.4 Technological analysis…………………………………19
5.2.5.4.1 Factors that creates opportunity……………………19
5.2.5.4.2 Factors that creates threats…………………………19
5.2.6 Contribution of PTCL towards Economic development………19
5.3 Organizational structure……………………………………………..20
5.3.1 Organizational hierarchy chart………………………………...21
5.3.2 Number of employees………………………………………….21
5.3.3 Main offices…………………………………………… ……...21
5.3.4 Introduction of all departments………………………………..22
5.3.4.1 Operational department………………………………..22
5.3.4.2 Switching department……………………………………22
5.3.4.3 DSL maintain department …………………… ………....23
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5.3.4.4 Customer care centre ……………………………… ……23
5.3.4.5 Human resource department……………………… …….23
5.3.4.6 Revenue and collection department……………………...23
5.3.5 Comments on organizational structure ………………………….24
5.4 Internee work…………………………………………………………..24
5.4.1 Brief introduction of internee branch……………………………24
5.4.2 Details of supervisors………………………………………….…25
5.4.2.1 Mr. Muhammad Ali (Manager of R&C) ……………..…26
5.4.2.2 Mr. Zia Rizvi ( Assistant manager of R&C) ……………26
5.4.2.3 Mr. Muhammad Aslam (Assistant Manager Finance) ….26
5.4.3 Weekly timetable …………………………………………….…26
5.4.3.1 First week timetable ……………………………………26
5.4.3.2 Second week timetable …………………………………27
5.4.3.3 Third week timetable ………………………………...…28
5.4.3.4 Forth week timetable …………………………………..28
5.4.3.5 Fifth week timetable……………………………………29
5.4.3.6 Sixth week timetable …………………………………..30
5.4.4 Detail description of the internee department …………………30
5.4.4.1 Revenue and collection department …………………...30
5.4.5 Detail description of the task assigned during internship……...31
5.4.6 Summary of learning……………………………………………33
5.4.6.1 Skills and qualifications gained during internship………33
5.4.6.2 Responsibility undertaken during internship……………33
5.4.6.3 How internship influence my future career plans……….34
5.4.6.4 How internship activities are correlate with class room
work: ……………………………………………………35
6. Analysis ………… .…..………………………………………………….36-48
7.Summary of conclusion………………………………………………………49
7.1General observations about the sector in which your internship…………50
7.2SWOT …………………………………………………………………51-56
8.Recommendations……………………………………………….………….56
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9.References……………………………………………………………………57
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Executive Summary
5.1 Introduction
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The main purpose of this report is to completion of the requirements for the course of
BBA. For the completion of this requirement every student of that course is require to
undertake internship in any relative organization, for a period of six week.
The other purpose of this training is to understanding the corporate culture and
practice of the theoretical knowledge that we have gained in the class rooms. The
other purpose of training is to understand the How the theoretical information can be
applied in practically. And also know about the how organizations manage their
finance and how organizations solve their issues related to operations.
This report is about the Pakistan Telecommunication Limited, Model Town Exchange
Gujranwala, where I learned different things during the period of internship about
Telecommunication sector that will discuss in soon after in the other portion of this
report.
5.1.2 Introduction of Internship Organization
As there was a little as I have little time for the study of Revenue and collection
department of Pakistan telecommunication company and their corporate culture of
revenue and collection department ,but this report mostly focus on the function of the
organization.
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During the period of internship I have achieved following objectives
To apply the theory in practical situations.
To develop my attitude supportive to valuable interpersonal affairs.
To recognize how the key business method are carried out in business.
To know how of the information that is used in an organization for
decision making at diverse stages.
To get professional know-how in an actual testing situation.
To develop my learning experience by application of theory in
practice.
To increase my knowledge about the telecommunication sector.
5.2 Overview of the organization
In 1962 the first step are taken towards the telecommunication sector when the
government of Ayyub khan decide to divide the Pakistan telephone and telegraph
department into two separate departments under the presidential ordinance, And each
department has its own entity to operates their operation according to their rules and
regulation that are made after the separation of the PT&T.
In 1990 many changes brought in the economic structure of Pakistan. The major
change in this decade is that there was privatization of the many department of the
government of Pakistan. A major breakthrough in the history of telecommunication in
the country occurred with the gradual deregulation and privatization, at the first stage
Pakistan telephone and telegraph department (PT&T) was converted into a statutory
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corporation Pakistan telecommunication corporation. On December 5th, 1990 the
PT&T department was transformed into Pakistan Telecommunication Corporation
with a legal identity separate from the government. This change in the statute
introduced by the government of Pakistan enabled PTC to move from administrative
to contractual relationship with its customer.
services all over the Pakistan. Total asset of it were Rs.17957366 thousand (2015) in
which current assets were Rs.6962538 thousand (2015) and fixed assets were
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32587134 thousand (2015). If we make comparison of assets with last year (2013),
then current assets decrease by Rs. 529258 thousand in (2015) and fixed assets
increase by Rs.178561 thousand. And there is a decrease in total assets by Rs. 233482
thousand in (2015). Total current liabilities of PTCL were also Rs.4434535 thousand
(2015) and in (2013) the liabilities were 3858325. Revenues were Rs. 81512600
thousand in (2015) which is increase as compare to last year’s revenues were Rs.
81061360 thousand. net income was Rs. 520749 thousand in (2015) and earnings per
share was Rs 1.02.PTCL is now expanding its business by make new policies and by
offering new products and services to the customers like online services, broadband
services, smart TV, Evo, Evo 3g wingle, etc. By offering these new products and
services they able to maintain its old customers and also able to attract new
customers.
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vii. The SAMENA Award 2011 is another historic milestone for PTCL in its
continuing journey of technological progress and business achievement,”
viii. PTCL has been honored with the best wireless broadband awarded by
consumer choice award.
ix. PTCL has been consecutively honored 2nd 3rd and 4th Global HR awards in
2013, 2013 and 2015.
Pakistan Telecommunication Company Limited not only Provides the fixed line
services its also provide the wireless services for their customers. There are briefly
explained the some product and services of PTCL.
These services are basically for the common users (Individual/home users) those use
telephone in their home/work place and they are basically non business users.
PTCL is only oldest and largest Pakistan Company, who provided the fixed-line
telephony in the country. At that time any business concern or individual needs a new
telephone connection.
In value added services PTCL provide the CLI (caller line identification) that
allow the customer to identify the caller before picking up the phone receiver.
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PTCL launched a new billing service which is available through “PTCL Calling
Card” This is another service from PTCL. This service is basically providing billing
solutions for the users.
PTCL is striving hard to facilitate its valued corporate customers at each level of
service. PTCL offers a host of unmatched services to suit the needs of the Corporate
Customers.
Banks
Newspapers
Airlines
Hotels
Shipping Lines
Fast Food Outlets
Consumer Products Companies
Insurance
Credit Card Companies
Travel agencies
Courier Services
With PTCL Messaging Service, you can have all for (or Desired) calls recorded when
you are absent, busy on phone or do not want to attend the calls for any reason.
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The concept of the service just like toll free 0800 but charges a local call for each
connectivity attempt, UIN involves allocation of numbers to individual ISP’s who are
licensed by PTA.
There are some main products of the PTCL that are mentioned below
Broadband Pakistan give the many services through the same line of telephone
without any extra connection of cable. Broadband Pakistan also offers DSL for their
customers that provide the internet at more speed and connectivity.
5.2.4.3.2 V-Fone
Pakistan telecommunication offers the v. Fone service to their customer at low rates .v
–Fone is a fixed wireless telephone connection foe home and business place. We can
call through v-Fone at any time .PTCL have round about 1.27 billion customers of v-
Fone.
PTCL landline provides the services of voice calls and voice messaging. It also
provides the services of internet with the same wire of the connection of telephone.
PTCL provide the landline provide highest quality services at very low rates and
offers different packages to their customers and also provides the value added
services.
PTCL introduce the new EVO tab that has the all necessary features that the
customers require at work places and at home. PTCL EVO tab gives a better
experience foe office work and for play games. PTCL EVO has these entire features
3G supported tab, wireless technology with ability to create personal wifi.
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5.2.4.3.5 UFONE
In 29th January PTCL owned a subsidiary in the form of UFONE (Pakistan telecom
mobile limited).UFONE now consider the most active player in the market of the
mobile sector of the Pakistan and it also earn a high profit through its services .
UFONE provides the different kind of services like 3 G internet, call packages
according to customers’ needs; Low international calls rates and also provide the cell
phone.
EVO wireless broadband used to provide the internet services of the PTCL customer
through wireless system.EVO wireless is a ultimate solution of the high speed internet
access to customers at low rates. You can enjoys that services at any place even at
school, college, university, office at any place just plug and play or work at anywhere.
5.2.4.3.7 Smart TV
EVO CHARJI currently launch on in the market with the fastest network means the
speed of downloading is five time faster than 3G networks. EVO CHARJI extremely
faster downloads movies, documents, videos and also live stream like a dream. EVO
CHARJI currently the faster wireless network in the country
PEST analysis is carried out in order to understand what the external factors
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That might affect the organization. This analysis is essential in order to understand
external factors so that one can make strategies to cope with these factors, because
external factors are uncontrollable by organizations.
Political factors are those factors which are directly controlled by government and
political parties and these factors directly or indirectly influence on the organization
operations.
Economic factors are directly controlled by the financial institutions. They help the
industry to provide the financial resources in the time of financial crises..
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There are some factors that create threats that are following:
The telecommunication sector is one of the most profitable sectors and is able
to attract foreign currencies due to which government is trying to give most
benefit to this sector.
Telecommunication industry is currently fastest growing industry in the
country that creates the opportunities of the foreign investment in the country.
Social factors are the factors that are directly attached with culture and with the
people of a specific region.
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The literacy rate of Pakistan is very low as compare to other countries that is a
major threat for the telecommunication sector because due to this people could
not be able to understand the language and the system of telecommunication
sector that creates ambiguity in the minds of customers
Many people in Pakistan are traditional that are willing to adopt the new
technology that is a major threat for industry.
Technology is major factors that create opportunities and also with that they become
the threats for the industry because any advancement in technology may change the
market trend and the needs of the customers. if there is no response in advancement of
the technology then it may become the threats of the company.
PTCL provides new technology in different way that may change the behavior
of the people that may provide the bright future of the people of the country.
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growth of PTCL is high in previous fiscal years but currently its growth is lower as
compared to previous. PTCL showed revenue that earn previous year are 81512.60
million rupees and the net profit of RS 5207.49 million. The operating activities of
PTCL during the last year is the business growth with garland strength of the PSTN
(fixed lines),broadband, wireless local loop, EVO and the customer care quality and
also with the revenue assurance . The company has grow in the emergent broadband
market-both in the wire line and the wireless, with the 60 percent growth in the
broadband customers, receptive revenue have grow and increase by 68 percent.
PTCL aware the socially and responsible that contribute in the health and education
sector in education it provides the information technology learning that is a huge
contribution in the economy because due to this the technology advancement in
different sectors of the economy may increase the economic position of the country.
FOR the PSTN customers, introduction of the new packages corresponding with the
needs of the different segments of society that increase the revenue of government
through the different taxes on different packages. PTCL deposit the wireless
technology that takes over the shares of the broadband market, the number of
broadband user crossed the one million. PTCL was the top in the broadband market
that hold 57% shares of the market
S.E.V.P
E .V. P
TECHNICAL
(Switching)
S.E.V.P
OPERATIONS E.V.P
(Transmission)
G.M
)))
S.E.V.P South
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Finance
President and E.V.P
(Finance) G.M
CEO
North
S.E.V.P
COMMERCIA
E.V. P
L Reg. G.M
(Sale)
S.E.V.P (Central)
COOPERATE
E.V. P
Marketing Reg. G.M
S.E.V.P (South)
HR
E.V. P C
customer Reg. G.M
S.E.V.P services (North)
BZ NORTH
Numbers of employees that are currently working in PTCL are round about 26000.
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Southern Telecom Region-1 Hyderabad
Southern Telecom Region-2 Karachi
Southern Telecom Region-4 Sukkur
Southern Telecom Region-Quetta
GTR Telecom Region
Operational department maintain the whole infrastructure of PTCL and also maintain
the operational related activities that is the cables, wifi routers, exchanges and other
assets of PTCL. Operational department also responsible for installing new landline
numbers and external restoration(external restoration means the any fault in the line of
the customers).In model town exchange this department control the exchange
activities of the exchange and also facilitates the customer to resolve their restoration
issues.
Switching department is the department that are operating her all activities within the
exchange. The activities of the switching department are providing the services of
new subscriber. Switching department also providing the disconnection services if
any customer want to unsubscribe the services. if there is any subscriber and
unsubscribe that in case the switching department which provide services and
disconnect services with the collaboration of operational and R&C department that
provide the NOC for new connection and provide advance bill in case of
disconnection(unsubscribe).
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Digital subscriber line (DSL) is the department that provides internet service and
other online facilities such as smart TV to its customers. The key responsibility of
DSL department is providing facilities to new subscribers and providing superior
services to existing subscribers. They are also responsible for rectification for these
services.
Customer care centre or one stop shop focus is totally on customers. They facilitate to
customers in different ways either by providing information about different packages
of DSL, 3G EVO, Nitro or cloud and EVO Charji. They are responsible for order
entry of NTC, DSL. Smart TV, V .Fone. EVO, NITRO, CLOUD and other devices
Human resource department is to facilitate the employees of the all department. They
facilitate the employee and also check the performance of the employees. The main
role of human resource department is to meet the business needs (PTCL) through
managing your important resources that are employees. This include also managing
hiring and recruiting employees.HR department also give the counsel to other
mangers to resolve the issue related to employees.
Revenue and collection department is responsible to maintain all the activities that are
related to finance. The main role of that department is to providing the duplicate bills
in case of customer didn’t receive bills on their designated place on due date, make
arrangement of bills that are transfer to different customers and also perform many
other finance related activities like how to make payments in installments, providing
tax statements etc. They are also responsible for restoration in collaboration with a
switching and operational department. Revenue department also protect the interest of
telecommunication services in the region .Revenue department also investigate
complaints and other complains made against the provided services like bill not
delivered, extra charge and all other matters related to finance.
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5.3.5 Comments on organizational structures
PTCL organizational structure is very efficiently and effectively designed that is there
is clarity in hierarchy (who reports to whom).In which all the worker and co-worker
work under their supervisor and also responsible to do all those task that the
supervisor assign to them.
During my training I have perfume different tasks and acquire different skills
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480 ALCT-PAPNAKHA 356
481 NGN-JAMKA CHATHA 784
501 NGN-MANSOOR WALI 1256
505 ALCT-AZIZ CHACK 1478
517 ALCT-VERPAL 478
526 EWSD-INDUS.ESTATE 2 723
527 EWSD-LOHIANWALA 2134
532 ZTE-M-TOWN-V 3700
538 EWSD-AHMED NAGAR 2000
541 WSD-QILA-DIDAR SING 5477
548 NGN- Gujranwala CANT 2390
546 EWSD-ARMY DIGITAL 565
I have done my training period under the direction of these people which is the
Incharge of different department existing in Model Town Exchange Gujranwala.
Mr. Muhammad Ali is one of the intelligent and inspires personality. I have ever met
in my life. He is manager of revenue and collection department and he is responsible
for the overlook and management of revenue offices of Model town exchange.
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Mr. Zia Rizvi is Assistant Manager in Revenue and Collection Department. He is a
man of nice personality. He is very punctual, hardworking and fair to his work. I have
gain during my internship is the result of this personality. He guides me in every
aspect so nicely.
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numbers in order to confirm that customers are provided superior
services and they don’t have any issue regarding services or bill
collection.
10-07-2016 Sunday(Holiday)
11-07-2016 Customer dealing i.e. resolving customer’s issue regarding their bills
and adjustments of bill, installments of bills and maintaining record.
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and adjustments of bill, installments of bills and maintaining record.
14-07-2016 Customer dealing i.e. resolving customer’s issue regarding their bills
and adjustments of bill, installments of bills and maintaining record.
15-07-2016 Collect the adjusting bills and make record the entries of adjustment
in software and sent it to the manager.
16-07-2016 Make payments of bills of defaulter customer through online PTCL
machine.
17-07-2016 Sunday (Holiday)
18-07-2016 Calling of those customers that have issue in the collection of bills
and then re-check the address of the customer and acquire an email
ID for providing bill through email.
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Supervisor Name: Mr. Muhammad ALI Signature
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charge etc.
05-08-2016 Adjustment of bills and make a list of all adjusted bills.
06-08-2016 Make payments of bills through PTCL online system.
07-08-2016 No work
08-08-2016 Sunday (Holiday)
09-08-2016 Last day of my internship, I prepare a list of those numbers whose
bills has been adjusted due to extra charge in the bills
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of demand notice. Revenue department also protect the interest of telecommunication
services in the region or in the related areas and promote the availability of a wide
range high quality, efficient, cost effective and competitive services throughout the
region. Revenue department also investigate complaints and other complains made
against the provided services like bill not receive within due date , adjustments of bills
in case of extra bill charging, bill delivered through email in case of if customer not
receive the bill. Revenue and collection department has the authority to adjustment of
all those customers’ bills that have the issue of line fault in the services and the
customers could not use the services due to line faulty then in case Revenue and
collection department make the adjustment of bills according to customer usage.
senior account
officer
Assistent
manager
(Finance)
junior account
Manager officer
R&C
assistent manager
senior clerk
(R&C)
Several tasks are assigned to me during the internship. The detail description about
the tasks is providing below:
During my whole period of internship several tasks are assigned which are perfectly
accomplished on my hand. In startup days a list of new subscribers is given to me.
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The thing I have to do is to call the customer and ask them to quality of services. Ask
them either they receive customer invoice within due date if not then reconfirming
their address and other basic information i.e. subscriber name etc. After this a list of
defaulter customer is given to me. the thing I have do is to call the customers and ask
them why they are not paying the amount of bills and write down the reasons of the
customer that are why they are not pay the bill, either that are related to services
problem either that are the financial issue of the customer if that are related to
financial issue of the customers then I give offer to customers that they can pay the
bill in installments. Another set of activities that is performed during the whole
duration of internship is dealing with customers, printing tax statements calling to
defaulters, managing bank scroll. Dealing with customer includes sorting queries of
customers with respect to their invoices. Sometimes customer made timely payment
but due to software problem the charges will be in the next month invoice therefore
these charges have to be adjusted. The adjustments and installments are updated in
software for customer convenience. If customers are unable to make full payment
then installments are made in order to facilitate customer (the amount of installment is
50% of actual invoice amount). Another job I done during my course of internship is
the printing of tax statements i.e. customer sometimes ask for tax statements in order
to get exemption from tax of FBR (federal board of revenue). PTCL have given
different financial institutes authority to deposit customer invoice in order to facilitate
customers. These deposit slips are sent to another institutes called NIFT (an institute
whose responsibility is to maintain record of PTCL) whereas a list of customer
invoice is sent to Gujranwala NIFT office which is sort out according to institute.
After sorting these scrolls are updated to software in order to maintain record.
Another task I done during the internship is the recording of Defence Security
Certificates with respect to NSC registration number and its issue date in the
Software. Another task I done during the internship is to make online payments of
defaulter customers.
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During my whole period of internship I learned sufficient knowledge of organization
i.e. what the organization is about what are the products and services it offers and how
it satisfy it wide range customers, how the organization operates, who reports whom
and how the diverse network is centrally controlled. The greatest knowledge I have
gain during my internship is customer handling or we can say that customer dealing.
There is wide range of PTCL customers some are educated and some are illiterate
therefore it is very difficult to deal with illiterate customers. I have also gained the
skills of how to use the PTCL billing and customer care system software. I have
learned how to adjust the bills, how to restore the defaulted numbers, During my
internship I successfully cope with PTCL customers and able to resolve all there
queries and it is my immense pleasure that all of the PTCL customers are satisfied by
the services delivered by myself. I have also gained the knowledge about how to
report the managers about all those activities that are not solving during the job.
During internship period I also learn that how to handle troubles in a corporate
culture. During my internship I also learn that how to work in the field where
everybody has its own farm duties and they must do it because it is the part of their
job. I also learn how we corporate with each other in a practical life.
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Sometimes the customers are unable to deposit their charges in single attempt for
these customers installments are made so that they deposit their dues conveniently.
After learning basic knowledge of software that is operated by PTCL internally
customer queries are solved. For example if customer didn’t receive invoice than
invoice is generated. If customer wants tax statement than tax statements are generate
for customer convenience. If defaulters deposit their dues then their landline numbers
are made operational. During internship my manger give me a responsibility to
sorting of the Defence Saving Certificates and then recording of the registration
number of these certificates in the software. After recording these certificates I also
explain the detail description about the certificate that includes the total number of
NSC certificates and post office certificates. During my internship there is a major
issue in customer invoice that is the wrong print of NTN number on the invoices.
Then a responsibility of my manager give to me is that I assure the TCS team
performance in the correction of NTN on invoices while to assure that the bills of
several exchange are not mix up with the bills of other exchange during the correction
of NTN number through the NTN stumps. In the last week of my internship the last
responsibility of my is that make a file of defense saving certificates in hard form and
putt all the documents related to defense saving certificates in PTCL office file, Also
conformation the registration number of the certificates in the ms-excel sheet.
This internship will help me in my professional career, in the days of internship I gain
the knowledge about the behavior of the customer and the market trend. This
internship helps me out in my attitude towards customers i.e. dealing with customers
with customer oriented attitude. In the start of career this is one is greatest opportunity
to make public relations that help me to start my career with great position with
passion. This internship also help me out in my attitude towards the office team .this
may helps me in my professional career about how to deal with their team members.
During my internship I am able to learn enough knowledge about true corporate
culture, how things are run in corporations, in which way power is distributed, how
employees are controlled, how customers queries are solved and how to keep tight
controlled on every aspect. My internship period give me experience of practical life
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that how to manage the work in office and how to deal with other in during the work
that may help in the future career of my life. it assists me conceive the main
differences between the professional and non-professional life.
5.4.6.4 How internship activities are correlate with class room work:
My internship knowledge are different than the class knowledge. In the class we talk
about corporate culture. But my internship in PTCL make me understand about true
corporate culture about how responsibilities are distributed and how people are
overlooked and monitored and how superior services are provided to customers
through wide range of infrastructure. In class room we talk about the strong customer
relationship are most beneficial for an organization. In my PTCL internship I learn
that how to build relation with customer and how to deal the different type of
customers. In class room we talk about the operations of the organization and the
investment of an organization. In my internship period I learn that how the large
organizations manage their operation and how they raise funds. In class room we talk
about how large organizations manage their finance. In my PTCL internship I learn
practically hoe large organizations manage their finance. In class room we talk about
those things that create problems in the process of organizational operations. In my
internship training I am able to practically observe all those factors that creates
problem in operations of the organization like in PTCL R&C department correlated
with operational department if there are any error in operational department that error
must creates problem for R&C department in the shape of billing extra charges,
connection are not physically provided to customer but in software connection are
provided and revenue and collection department is responsible to charge bill of all
those connection that are shown in the PTCL database software. One thing about that
we talk in the class is the shares, saving certificates and T-bill. During my PTCL
internship I have seen the original form of defense saving certificates and learn how to
invest in any organization practically.
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Comparative Income Statement
The revenue comprise on two types that are: Domestic revenue & International
revenue. Domestic revenue in 2005, 2006& 2007 are Rs.61, 033,222, 63,164,414 &
59,601,058 respectively. International revenue in 2005, 2006 and 2007 is stated as
Rs.15, 535,027, Rs.9,520,017 & 9,989,508 respectively. Included in domestic revenue
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is revenue from subscriber for calls made to overseas destinations from Pakistan.
Revenue is exclusive of excise duty amounting Rs.8,519,150 thousand. International
revenue represents revenue from foreign network operators for calls that originate
outside Pakistan. International revenue has been increased by Rs.469,491 in the last
year reflecting an increase of 4.93% in last year while domestic revenue has been
decreased by Rs.3,563,356 thousands (5.64% decrease as that of 2006) because of
increase in lines partially offset by local call revenue NWD revenue.
The amount of operating cost also increased to Rs.46564338 thousand, the amount of
increase in the operating cost is Rs.4, 874420 thousand, which is 11.69% of the year
2007 cost.
Operating cost consist on salaries, allowances and other benefits, foreign operators
cost, fuel and power, communication, stores and spares consumed, rent, rates taxes,
traveling and conveyance, advertisement and publicity, legal and professional services
bad debt annual license fee, and depreciation etc. operating cost of Pakistan
Telecommunication Company Limited is increased with an increase in all the heads of
operating cost (approximately). The amount of increase in the operating cost is Rs.4,
874,420 thousand, equal to 15.14% increase of the operating cost of financial year
2004.
The impact of these changes on gross profit margin i.e. decrease from 39.66% to
28.67 in the years 2006 & 2007 , which is an indication of the improvement in
operational efficiency of the firm.
Operating income of the firm in 2006 was 27397518 thousands, which has been
converted to an operating income of Rs.18712687 thousand in 2007 decreased by
18.56%.
Earnings before interest and taxes showed a positive balance of Rs.24, 253,890
thousand.
Due to better performance and efficient control on operating cost and decrease in
financial charges PTCL has declared dividend Rs.2 per share in 2007.
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Table 4.2A COMPERATIVE BALANCE SHEET (Rs. In thousands)
Current Assets
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Equity & Liability (Rs. In thousand)
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150,000,000 150,000,000 150,000,000 100 100
Current assets were of Rs.39 billion at the end of financial year 2005 and increased to
Rs.50 billion at the end of 2006 (27.75% increased) and at the end of financial year
2006-07, it is of Rs.54 billion with an increase of 38.03% as to that of 2005. In the last
two years inventory has increased by 16.61% to 3.88 billion. Trade debt has decreased
by 76.45% to Rs.11 billion in the last two financial years. Receivables at the end of
the financial year 2006-07 is amounting as Rs.5.23 billion, 31.62% less than that of
2005. Company has improved its cash management and has increased its cash to
33.28 billion, 171.10% higher than what was at the end of 2005.
Non-current assets of PTCL have increased in 2006 while reduce in 2007 to Rs.98.62
billion. Work in process, plant, property & equipments constitutes major portion of
non-current assets. During these two years work in process has increased by 23.16%
in 2006 to Rs.13.10 billion while reduced 0.29% to Rs.10.60 billion as compared to
2005 while plant, properties and equipments have noticed an increase of 5.01% to
Rs.76.91 billion.
PTCL total liability has increased by 12.46% in the last two years to Rs.152.82
billion. PTCL current liability has jumped to Rs.30.3 billion with 46.88% increase in
2006 while increased 18.61% in 2007 as compared to 2005. This increase in current
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liability was because of 37.42% decrease in short term borrowing and with the
30.17% increase payables and 159.98% increase in taxation and 96.82% decrease in
interest and markup.
Long term liability increased by 14.43% to Rs.17.46 billion during the last two years.
Causes of this increase in non current liability are 51.18% decrease in long term
security deposits and an increase of 11.84% in employee’s retirement fund followed
by 79.75% increase in deferred taxation.
2 Common-Size Analysis
An analysis of percentage financial statements where all income statement items are
divided by net sales or revenue and all balance sheet items are divided by total assets2.
Percentage Change
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Unapp profit b f 599,963
PTCL income from other sources has shown improvement in the last two years and
constitutes 4.46%, 5.66% & 8.49% of total revenue in 2005, 2006 and in 2007
respectively which is partially offsetting the declining rate of EBIT. EBIT constitutes
52.32%, 45.32% & 37.16% in 2005, 2006 and in 2007 respectively. Company’s
financial charges rate has decreased during 2006 and increase in 2007, offsetting the
decline in profit before taxation rate which was recorded 51.72%, 44.83% for 2005
and 2006 respectively and now in 2007 it is 36.83%. Provision for taxation was
16.70% & 14.70
for 2005 and 2006 respectively and now for 2007 it is 12.42% of total revenue.
Despite of all the above constraints yet PTCL was able to maintain Earning per Share
at the rate of Rs.3.07. Earning per Share was Rs.5.22 and Rs.4.07 in 2005 and 2006
respectively.
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
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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.
Interpretations
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.
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2005 2006 2007
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.
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.
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Receivables 7,645,845 7,573,730 5,228,560
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 decreased in 2006 while
increased in 2007. In the year 2007 receivable turnover ratio are 12.48 shows that
PTCL is turning its receivables into cash more than twelve times in a financial year.
This trend of decreasing in this ratio is because of decrease in receivables is less than
the decrease in the total revenue. Causes of decrease have been discussed in the
beginning of this chapter. For a better view aging accounts receivables must be
analyzed to see how many are due & past due.
Interpretation
The ratio is very high in 2007 because the accounts payables are very low in 2007 as
compared to that of 2005 & 2006 which has shown an increase in the ratio. Ratio
shows an increase of 282% in 2007 as compared to that of 2006 and an increase of
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6.6% in 2006 as compared to that of 2005. Accounts payable is denominator in the
formula and results a very huge effect.
Interpretation
Inventory turnover ratio was 11.91 in 2005 but increased to 12.13 in 2006 and in 2007
it again decreased to 12.00. However PTCL has shown good performance in 2006 by
controlling inventory turnover.
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.
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Revenue 75,972,363 69,085,436 65,277,025
Interpretation
The ratio tells that operation of the company is still efficient i.e. it is still 29%. It was
calculated 47.86% in 2005, 39.66% in 2006 and 28.67% in 2007 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.
Interpretation
For PTCL in 2007, 24 paisa out of every sales of Rs.1 constitutes after tax profit
where as in 2006 it was 30 paisa while in 200 it was 35 paisa. PTCL has noticed a
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decrease of 20.23% in its GP margin 2007 as compared to that of 2006 while this
decrease in 2006 was 12% as compared to that of 2005. GP margin of 24% is still
encouraging for PTCL but this trend of decrease in its GP margin is never.
Interpretation
Return on investment in 2007 is 10.23% that is a profit over the firm’s investment
resulting from its operations. It explains that the firm has earned a 10.23% over each
rupee invested in 2007. ROI in 2005 and 2006 is 19.58% and 13.65% respectively.
Return on Equity
It is calculated as net profit after taxes (minus preferred stock dividend) divided by
shareholder’s equity. Return on equity reflects the earning power of shareholder book
value of investment. A high return on equity reflects the firm’s acceptance of strong
investment opportunities and effective expense management.
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Shareholder’s equity 100,014,031 105,475,464 110,913,264
Interpretation
In 2005 and 2006 ROE was 26.6% and 19.7% respectively and in 2007 it is 14.1%.
The trend is negative and decreasing continuously. PTCL has shown 28% decrease in
ROE in 2007 as compared to that of 2006. The debt ratio is not too high which means
that there are strong investment opportunities. And there is effective expense
management but PTCL will have to control its decreasing trend of ROE.
After the completion of internship it is concluded that it’s my luck that I have able to
do internship in well renowned organization. During my internship I am able to
learned enough knowledge about true corporate culture, how things are run in
corporations, in which way power is distributed, how employees are controlled, how
customers queries are solved and how to keep tight controlled on every aspect. Today
the difficulty is challenging Pakistan Telecommunication company limited is that
there is no implementation of rules and regulation that may cause the low productivity
of the employees. The presence of worker and employees unions in Pakistan
Telecommunication Company that practice to play organizational politics rather than
of creative work that may lead company performance on the track of success.
According to my view, the miserable customer relationship management, miserable
customer dealing, miserable discipline are some factors which can damage the branch
of Model town exchange at macro level. Pakistan Telecommunication Company
limited has many products that may give large amount of profit if they use aggressive
marketing strategies at the time of launching of new products. PTCL give the tough
competition to its competitors in the communication sector if they use aggressive
marketing strategies. Pakistan Telecommunication Company increases the profit ratio
if the hierarchy of the organization is re-structured in future. Currently PTCL have
many valuable assets that may return more if these assets are utilize properly on time.
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The profit of Pakistan Telecommunication Company Limited decrease as compare to
previous year that may the cause of inefficient use of resources and low productivity
of the employees. Pakistan Telecommunication Company Limited enjoys the
monopoly in the market but the profit ratios according to this are very low. The
qualities of PTCL internet services are very low as compare to its competitors that are
due to the lack of technical expertise in the organization. PTCL can improve the
quality of the services by the hiring of efficient employees and through the training.
PTCL is well renowned and the largest organization in telecommunication sector and
is growing day by day but there are numerous shortcomings that management have to
consider. There is lack of internal customer focus management have to consider
employees because these are the people who directly in contact with customers if they
are not satisfied than they are unable to serve customers in an effective way. Another
problem is low productivity of employees, the work load on employee is too much
due to which there productivity is low. Another weakness is that the implementation
of rules and policies are not assured. The policies are implemented without taken any
consideration of outcomes. The quality of services in specific region is another
problem. Due to infrastructural problem the services in specific region is very low
there is anxiety in customer because there is mismatch between price paid and quality
of services. There is inefficient utilization of resources in PTCL due to its vast
infrastructure and there is no proper maintenance of infrastructure. PTCL-V, the fixed
wireless phone service is poor. Due to inefficient management there is a problem in
providing the invoices on time to the customers.
PTCL is one of the biggest and the leading organization in telecommunication sector.
The entire telecommunication service provider in Pakistan directly or indirectly
depends on PTCL for their services. However another edge PTCL has is that it is
overlooked by state government and have bargaining power. PTCL are enjoys the
monopoly in the market.
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SWOT
SWOT analysis is carried out in order to access the organization internal strengths,
weakness and external opportunities and threat in order the environment in which the
organization operates, so that organization can understand these factors in developing
strategies in the modern and competitive world.
Strengths
PTCL is the largest and oldest telecommunication company in the Pakistan. PTCL
provides different type of products and services for their customers according to their
needs.
Monopoly of PTCL
PTCL maintain the record of the customers in an organize way with the principle
privacy .PTCL have a proper system to maintain the record of the customer in an
efficient way.
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Strong financial position
PTCL have a strong financial position in the telecommunication sector .PTCL have
many resources to raise their finance..
PTCL is a market leader in local loop, wireless local loop and fixed telephony.
PTCL still the largest landline network of Pakistan.
PTCL (Ufone) is a market challenger in GSM segment.
Ufone is performing well as compare to its though competitor Telenor and
Warid
PTCL still offering the different products and services in the market which
include internet, wireless network, EVO charge, smart TV, fixed telephony.
Weakness
Quality of services that PTCL provided to its customer is very low as compare to its
competitors especially the wireless internet service. Quality of services is a major
weakness of PTCL because the customers are the major source of earning.
The organizational structure of PTCL is very poor as compare to its competitors that
is one of the weak point of the PTCL. Poor organizational structure may cause the
poor quality services that are not efficiently provided to the customers. They may
cause the poor decision making for the organization.
PTCL have more employee as compare to its working capacity that is the main issue
in the performance of the organization. In the last three years PTCL also give the
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golden hand shake to its employees for the purpose of reduce the number of
employees.
Services that they provided to its customer are not good in the customer care centre.
There is a lack of expertise who can handle the issues of the customer.
PTCL are not having an aggressive marketing for their newly launched products or
services in the market. It may cause the loss of customer in the market because
marketing strategies plays an important role for grab the attraction of the con
summers.
In some departments PTCL have not the expertise for the solution of the problem that
occurs during the operations especially in DSL department PTCL have not proper
employees for their operations in DSL technical support.
Opportunities
External factors that may be helpful, in achieving the objectives of the organization
there are following opportunists for PTCL
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Huge market size
PTCL have a huge market size to increase their market share. PTCL also have an
opportunity due to having large market they can increase the rate of their growth,
through providing different products according to customer needs.
PTCL can increase the number of customer through expanding their product line
according to customer needs. PTCL can introduce customized innovative or new
products in the market because they have a huge market of different customers who
has different needs. PTCL Have an opportunity for the expansion of their product line
because PTCL have a huge market.
Adopt aggressive marketing that is required to promote offered services and products.
PTCL give tough time to competitors through the adoption of the aggressive market.
PTCL can improve its market share with the help of the aggressive marketing
strategies.
PTCL can hire the efficient and component employees in the future that can increase
the quality of the services and may cause the satisfaction of the customer in the PTCL
customer care centre. Hiring technical staff in specific areas like DSL issues in order
to increase customer satisfaction.
Joint venture with other telecommunication companies for introducing new products
in the market, joint venture may give some information of other company expertise
that how other company handles their issues in their operations.
PTCL can increase the customer satisfaction through the training of the
employees.
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PTCL can capture the internet market with the help its broadband services.
PTCL can improve its overall services quality through re-structuring of
organizational hierarchy
Threats
External factors that may be harmful, in achieving the objectives of the organization
there are following threats for PTCL
Many new players are entered in telecommunication industry that provides the
internet services in the country. Other companies provide similar internet services that
PTCL provide but they provide their services in an efficient way. Increasing the
number of players in telecommunication industry may reduce the market share of the
Pakistan telecommunication limited.
Political Instability
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Pakistan economy not good as compare to other countries, the inflation rate in
Pakistan changes day by day That may cause increase in the cost of the services that
are provided to the customers. Change in inflation rate may increase or decrease the
rate of interest regarding to loan that PTCL borrow to different financial institutions.
Increase in the tax rate on internet packages is the major threat foe telecommunication
industry. Currently Pakistan government imposes the 14% tax on internet packages
that may increase the cost of internet services. In future it may increase more in the
tax rate on internet services that may become the major threats of all
telecommunication companies.
8. Recommendations
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Efficient management in decision making can decrease the ratio of bad
debts.
PTCL should improve the system of customer privacy by keeping the
customers profiles in secrets.
PTCL should introduce a proper method for the payments of after due date
bills.
PTCL should improve the quality in the fixed telephony.
PTCL should improve the system of customer complaints.
9. References
http://earnup.hubpages.com/hub/historyof_ptcl
http://www.scribd.com/doc/11170075/PTCL-Company-Analysis
I. http://www.onlinetaleem.com/ptcl/introduction-and-history-of-ptcl.html
II. http://www.ptcl.com.pk/pd_content.php?pd_id=41
III. http://www.scribd.com/doc/63214835/Pest-Analysis-of-
PakistanTelecommunication-Industry
IV. http://www.scribd.com/doc/37848431/Final-Internship-Report-on-Ptcl
V. PTCL Revenue and collection office model Town Gujranwala.
VI. PTCL annual Report 2015-2016
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