Académique Documents
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MEPCO (WAPDA)
MEPCO CIRCLE MULTAN
M.Com Degree
BY
M.Com
Roll No. 18
Session: 2008-2010
COORDINATOR
Prof: Khawaja Shaber
APPROVAL SHEET
INTERNSHIP REPORT ON MEPCO
SUPERVISED BY -----------------------------
DESIGNATION -----------------------------
SIGNATURE -----------------------------
EXTERNAL EXAMINER
NAME -----------------------------
DESIGNATION -----------------------------
SIGNATURE -----------------------------
PREFACE
Genius makes its observations in short hand; talent writes them out at length.”
Christian Novell
As mentioned by the above quotation observing and on site viewing are very firm base for
learning. We learn a lot more by seeing theories, we read in books, applied practically by the
pros and by seeing how they actually put them to work.
If we over the significance of internship program then we will be able to bare the facts that
internship enhance ones practical loom towards work and provide maximum chances for
learning, which will obviously help out candidate in the practical fields. The intention about
internship program is that the students can analyze, observe, feel, examine the organization
environment and equip themselves with the tools to face the ever shifting challenges in the
organizations. In short internship plays a pivotal role in the future sensation & stir of the
candidate.
This Report is specially meant for the student of M.com. It is concerned to a brief study of the
operation, Function, tasks and services of MEPCO.
The effective system at MEPCO was a piece of art and to see it in working process was a treat its
elf.
MEPCO has fine organizational structure and a well defined fully working effective system that
helps and aids managers to do their jobs at best. Our knowledge was further enlightened when
we had some of the lectures from the senior managers of MEPCO, they knew quite a lot about
the organization and the subject and they left no stone unturned.
In preparation of this Report is have tried my best to provide all Possible information about the
operation, function and tasks of MEPCO in brief and comprehensive form. It also includes a
brief department worked during internship. I have also tried my best to use simple and easy
words and language.
This report is an entire work of my first step of practical work about MEPCO operations &
practices. In my view it is a credible and comprehensive compilation of facts. In this report I
wrote principally on the issues pertaining to job duties & responsibilities, operations &
practices and its future prospects with some recommendations.
When the time came to give this information a convenient shape I was confronted with a view of
what to put in. One leeway was to include all details with explanation & second preference was
to point out some worthy issues with some details. Last solution looked more practicable to me
therefore I opt for second solution i.e. to present some relevant feasible details. These details
entail information about management philosophy, practices, and functions, strong and weak
areas of MEPCO.
I take this opportunity to express my gratitude to all who helped me in the preparation of this
valuable report.
Then internship report ends with some recommendation after identification of some problems
observed during the course of internship.
All praise to Almighty Allah, the most merciful and compassionate, who gave me skills and abilities
to complete this report successfully.
I am grateful to my parents who are always been a source of encouragement for me throughout
my life and from start to the end of this report. I am thankful to all MEPCO STAFF who helped me
gathering data and collecting lectures.
I found everyone very co-operative and helpful for providing me the theoretical as well as practical
knowledge about the functions and operations of the MEPCO.
The whole MEPCO Team that helped me by providing all the needed information I needed to co
mplete
this report.
Sadaf Javed
M. Com
I dedicate my work to firstly MUHAMMAD (S.A.W.W) and also my most respectable parents and
teachers whom prayers and hard work made me able to have such an opportunity of working in the
Government Sectors and get experience.
EXECUTIVE SUMMARY
“Experience is not what happens to you, it is what you do with what happens to you.”
-Aldus Huxley
I judge my time spent at MEPCO (Finance) departments being the most productive and
exhilarating experience of my corporate life. Few of the main highlights of my work experience
while at Finance Department were:
Good Leadership
Congenial Work Atmosphere
Challenging Tasks Assignment
Employee Empowerment
Proactive Problem Resolution
Before the details description of the report I started with the summary of work I had done. The
basic purpose of this summary is to given an idea about the contents and efforts made behind
the completion of the report to the reader.
It was assigned me to visit the MEPCO to view the working environment, function, procedures
and behavior of doing work. Internship was started from 11-01-2011 and end on 10-03-2011,
this period was the real experience of my life and I saw the setup, working process and formal
documentation of the MEPCO.
The MEPCO is a very big organization with several departments in working in the head office.
The human resource department which deals with the internees has assigned me MEPCO
Khanewal Road Multan for 8 weeks. MEPCO gives me the opportunity to view, how the books of
accounts are prepared, how to fill the different forms, how to behave with customers and about
the record keeping. I worked in different section of MEPCO and learned about distribution
system of MEPCO, technical correspondence between departments and flow of data between
departments. Here staff gives me opportunity to do practical work. It was a really nice
experience for my upcoming practical life.
I would like to conclude by saying that even though every person will have a different story to
tell. I have given more than 100% of my efforts to keep up that good work and I am sure that my
colleagues have done the same. I am hopeful that as we pass through the corridors of this great
institution into the real world, this legacy will be kept and upheld by the future generation
commerce.
Specific Purpose:
Specific purpose of the study includes.
To objectively observe the operations of MEPCO in general and the operations of MEPCO
in specific.
WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a Semi-
Autonomous Body for the purpose of coordinating and giving a unified direction to the
development of schemes in Water and Power Sectors, which were previously being dealt with,
by the respective Electricity and Irrigation Department of the Provinces.
Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA
and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and
hydropower development whereas PEPCO is vested with the responsibility of thermal
power generation, transmission, distribution and billing. There is an independent
Chairman and MD (PEPCO) www.pepco.gov.pk replacing Chairman WAPDA and
Member (Power) who were previously holding the additional charges of these posts.
WAPDA is now fully responsible for the development of Hydel Power and Water Sector
Projects.
PEPCO has been fully empowered and is responsible for the management of all the
affairs of corporatized nine Distribution Companies (DISCOs), four Generation
Companies (GENCOs) and a National Transmission Dispatch Company (NTDC) and also
in (IPP’s). These companies are working under independent Board of Directors
(Chairman and some Directors are from Private Sectors).
The Companies are administratively autonomous and leading to financial autonomy by
restructuring their balance sheets by bringing their equity position to at least 20
percent, required to meet the prudential regulations and to facilitate financing from
commercial sector (approved by ECC).
The Loan Liability Transfer Agreements (LLTA) has been signed with Corporate Entities
and execution of loan transfer is complete.
All Entities have the physical possessions of all their operational assets.
On 24th Feb. 2007 Ministry of Water & Power notified NEPR Approved Tariff for all
Distribution Companies replacing unified WAPDA Tariff.
Legal Agreements such as Business Transfer Agreements, Operation Development
Agreement, Energy Supply Agreement, Business Supplementary Agreement and Fuel
Supply Agreement etc. were executed between WAPDA and Corporate Entities to
facilitate commercial operations.
Regulatory instruments like Grid Code, Distribution Codes, Performance Standard for
Distribution Companies and Transmission Companies were drafted and got approved
from (www.nepra.org.pk) in 2007.
The Pakistan Electric Power Company (Private) Limited (PEPCO) has been entrusted
the task of managing the transition of WAPDA from a bureaucratic structure to a
corporate, commercially viable and productive entity. It is a mammoth task and
progress in the initial months was rather slow, but one should keep in mind that
responsibility is enormous and transition is a long drawn process.
Mission:
To fully enable the reform and restructuring of the Pakistan Power Sector and to transform the
fourteen (14) Corporate entities (CE's) into autonomous and commercially viable enterprises,
thru induction of effective corporate management, best business and utility practices, and well
engineered systems, and bridge the ever growing supply-demand gap, so as to meet customers
electric energy requirement on a sustainable and environmentally friendly basis, thru best
utilization of resources, in an efficient, ethical and customer friendly manner, with
responsibility to the community and the Nation.
Objectives:
Pakistan Electric Power Company (PEPCO) unveiled new face of Pakistan's power sector with
the crisis management objectives to improve the efficiency of the power sector and to meet
customers' electric energy requirements on a sustainable and environment friendly basis. The
specific objectives of PEPCO are:
Power Wing is currently headed by Member (Power). Power wing of WAPDA comprising of
Generation, Transmission and Distribution has been restructured into fourteen (14) public
limited companies. These fourteen (14) Corporate Entities are;
Out of thirteen units, nine were Discos, means distribution companies. These are:
Wapda has four GENCOs, which means generating companies. These are:
1] Southern Generation Power Company Limited (GENCO-1) head quarter at Jamshoro
District Dadu near Hyderabad Sindh.
2] Central Power Generation Company Limited (GENCO-2) head quarter at Guddu District
Jacobabad Sindh.
3] Northern Power Generation Company Limited (GENCO-3) head quarters at TPS
Muzaffargarh
4] Lakhra Power Generation Company Limited (GENCO-4) Headquarter at WAPDA House
Lahore.
5] District Muzaffargarh Punjab.
NTDC acts as buffer between DISCOs and GENCOs. Any DISCO can’t purchase electricity directly
from GENCOs. Thus NTDC acts as a bridge to distribute the GENCO production among DISCO on
the rate decided by NEPRA (NATIONAL ELECTRIC POWER REGULATION AUTHORITY) and
further checked and controlled by CPPA (CENTRAL POWER PURCHASE AUTHORITY).
INTRODUCTION
MEPCO THE MULTAN ELECTRIC POWER COMPANY IS ONE OF THE
BIGGEST DISTRIBUTION COMPANY OF WAPDA. IT'S AREA OF OPERATION
IS FROM SAHIWAL TO SADIQABAD, BAHAWALNAGER TO BAHAWALPUR
AND TOUNSA SHARIF TO RAJANPUR AND BORDERING WITH SIND,
BALOCHISTAN AND NWFP.
MEPCO was formed in 1997. It consist whole part of southern Punjab under its services. Like a
proper limited company, MEPCO also has a Chairman, Board of Directors, Chief executive officer
and Company Secretary, along with the departments of Operations. Maintenance, Constructions,
Planning, Civil, Admin, Human Resources, Computers, Public dealing and Finance.
All of these departments have their own Managers, Deputy Managers, Asst Managers and Office
staff. Further these departments are subdivided into sections and sub sections. As being
entrance of Finance Department, my major concern of report relates to the Finance Department
of MEPCO
MEPCO History
MEPCO
The environment and structure of the power industry throughout the world are undergoing
dramatic change. The power sector is moving from monopoly to privatization and from
integration to disintegration. To keep pace with this change, the Government of Pakistan
approved a Strategic Plan in 1994 as a consequence of which the power wing of WAPDA has
been unbundled into 12 Companies for generation, transmission and distribution of electricity.
Multan Area Electricity Board was reorganized into one such corporatized entity under the
name of Multan Electric Power Company (MEPCO) with effect from 14.05.1998, with the aim of
commercialization and eventually privatization.
VISION:
To ensure convenient availability of high quality power in area of responsibility, in order to
alleviate the poverty, improve quality of life and make the Industrial and Agriculture Sector
MISSION
Ensure convenient availability of high quality electric power to the people at affordable price,
retaining financial viability of the Company.
OUR COMMITMENT:
Improve customer satisfaction Reduce Line Losses weed out corruption Increase revenue
generation
MANAGEMENT PHILOSPHY:
Open door policy for all
Merit, justice, fair play be the hallmark
Transparency in all fields
Accountability of everyone
OBJECTIVES:
To play an active role to make “Sar Sabaz and Roshan Pakistan
MEPCO consists of the following eight (08) Distribution Operation Circles, one Construction and
two GSO Circles, as detailed below:
Operation Circles:
G.S.O. Circles
1. Multan Circle 6 Divisions
2. Sahiwal Circle
GRID STATIONS
1. 132/11KV 77 No’s
2. 2. 66/11KV 27 No’s
PRODUCT LINES
CATEGORY WISE ELECTRICITY CONNECTIONS
1. Domestic A-1
2. Commercial A-2
3. Industrial B-1
5. Agriculture D-2
Everyday its own staff and officials. Description of every department is given in detail ahead.
But first we will look at the official structure of this department with its senior officials and
duties of the staff as being related to financials.
3. Tax Cell
4. Pre-Audit
5. Assets/Salary Slip
6. Pension Cell
7. Compilation
8. Receivable/Payable
9. Audit Cell
10. Establishment
11. Admin
We spent recommended span of time in each section in order to get trained in the deep work of
finance activities in this every department. Details of each section are explained as this report
proceeds.
The Finance Director also pass & paid different nature of bills like supply bills, contractor’s bills,
employees claims etc. and approves the financial implications & Budget provisions during the
vetting process of the files of purchase of material. This office is also responsible for preparation
and control of overall Budget of the Company and other Divisions of the Company on monthly,
half yearly & on annual basis. The revenue of the company which is collected by the authorized
bank branches and transfer to Main accounts of the Company, is also maintained by the Finance
Director & issues the funds to the respective division as per their requirements
TYPES OF SECTIONS:
1. Banking & Imprest
3. Tax Cell
4. Pre-Audit
5. Assets/Salary Slip
6. Pension Cell
7. Compilation
8. Receivable/Payable
9. Audit Cell
10. Establishment
11. Admin
BANKING:
In banking collection of revenue in shape of electricity bills are deposited in different banks.
This section control and over watch whole activities of banking procedure. This section
monitors collections of Electricity Bills, Security Deposits, RCO fees, and other receipt as well as
remittance of collection in to Main Branches of Company at Multan.
If any bank fails to remit the company’s fund in time, this section ask for such omission and
charged interest for late remitted of company’s fund. This profit is called Penal Profit. This
section also deals with the reconciliation and related matters with banks. Moreover, this section
releases funds to the different Accounting Units of the Company. All the Bank branch and Post
Offices are allowed to collect the funds on behalf of MEPCO.
BANKING RECONCILIATION:
The summary of collection which known as”C P 48” prepared in and by AM (CS). This summary
is reconcile with bank statement and after preparation of reconciliation it has been sent to head
office Lahore and all this procedure done and handled over the banking section:
REVENUE COLLECTION:
This section collects revenue from different departments and remitted top the Head quarters.
Billing revenue is at the top, which is a collected from the consumers in almost 80 lower and
also Main and Feeding branches like 25 Bank branches and Post offices as well. This final
revenue is sent MEPCO monthly. Plus there is a service level Agreement according to which each
of these branches Charge some amount to MEPCO per bill and if any Bank fails to clear MEPCO’s
accounts by the end of the month, it will pay MEPCO by following Formula: Amount retained ×
0.00045× days (by which payment has been delayed)
Further such accounts are not allowed to be operated via cheques books and these are not
issued for such accounts. Further revenue collection summary is known as CP 48.
IMPREST:
Amount which has been withdrawn from collection for meets of monthly expenses, it is known
as Imprest.
It is described by “Finance Director” or “Chief executive” within described limits.
BANKING FUNCTIONS:
1. OPERATING BUDGET:
a) GENERAL ESTABLISHMENT:
b) MAINTENANCE BUDGET:
2. CAPITAL BUDGET
Capital budget consist of the following type of budgets
i. System augmentation program
ii. Development of power
iii. Energy loss reduction
CAPITAL RECEIPT
Security submitted for the new connections is treated as capital receipt.
BUDGET PREPARATION
TAXES SECTION
Tax section has been established to fulfill the requirements of Income Tax Ordinance, 2001 as
applicable to corporatized entity anywhere in Pakistan. WAPDA is exempt from the levy of Tax
but in the current scenario, MEPCO, being Limited Company, is payable to Tax liability as
The Federal Board of Revenue (FBR) has recently allotted National Tax Number (NTN) and
Sales Tax Registration No. (STRN) to MEPCO.
MEPCO was exempted from any type of tax deduction. Since 24 February 2007 from this date it
has been valid. Because MEPCO passing the loss period from 2007 and currently it also
generates loss. And now GOVT, give subsidy to MEPCO.
2. Deposit of Tax:
Deducted tax deposit in FBR (Federal Board of Revenue) by its account in NBP. And
also interchange Tax deducted copies one another circle.
TYPES OF TAXES:
Monthly withholding Tax statement under the Income Tax Ordinance, 2001.Annually
withholding Tax statement of MEPCO Income Tax Ordinance.
Replies of Income Tax Notices issued by the Tax Department under section 161/205.
Sale tax is deducted on goods purchase 15%. This tax only paid by final consumer but Govt.
Give subsidy before final consumer between two means of customers. On material supply the
supplier purchase 3.5% and services 6%.
Monthly Sales Tax Returns of MEPCO under the Sales Tax Special Procedures Rules, 2007,
issued under the Sales Tax Act, 1990.
Claim Refund of the claim of Subsidy of GST from the Ministry of Finance, protected by the
Government of Pakistan.
Monthly withholding GST Statement under S.R.O. 660(I)/2007 called as the Sales Tax Special
Procedure (Withholding) Rules, 2007.
If consumer use less than 500 units Govt, gives subsidy and Ministry Finance refund it.
But if a consumer
PRE-AUDIT
As the name indicates it is audit before execution of Transaction and before the Payment is
made. This procurement is related to M.M.Distribution & M.M.STG. E.g. New Grid Station, New
Heavy Lines, Big Transformers and Bankers Procurement.
PAYMENT:
Payment can be direct or via L.C. it is also Pre-Audited before Payment is made. Payment to
Contractors is also audited.
MODES OF PAYMENT:
There are two modes of Payment by which the payment is carried out;
1. Cross Cheque.
2. Letter of Credit.
CIVIL WORKS:
Measurement Books are Pre-Audited and also Civil Works.
CONTRACT AWARDING:
Contract Awarding is also Pre-Audited e.g. Tenders Quotation are also checked.
VEHICLES:
Vehicles related activities are Pre-Audited e.g. POL of vehicles and LOG Books of vehicles are
checked and audited.
DEPRECIATION:
Depreciation is charged on the straight Line Monthly Basis of Fixed Assets as 3.5% per Month.
INVOLVEMENT:
Junior Clerk.
Acceptance/Clerk/Purchase Inspection Order.
(In case of Acceptance pass to Account Asst.)
(In case of Rejection return back to Tender Co.)
Account Officer (to maintain Accounts sheets).
Pre-Auditor (In case of 50,000 limits). / Deputy Manager (Above 50,000 limit).
Demand Preparation.
Account Officer.
L.D. {Late Delivery Charges, (2% under 5 Months Payment), 10%(After 5
months)}.
Supply Bill (Against Deposit/Against Budget).
Budget section (To prepare Budget).
Asst Manager.
Finance Director (Banking Sector).
This section is established to deal with all the movable and immovable assets of the company.
Now, the concerned Divisions monthly submit the Assets Sheets to the Section to calculate the
depreciation on Straight Line monthly Basis. Asset section of MEPCO Finance Directorate and
Maintains record of various assets held by MEPCO.
Buildings 2%
Office Equipment 10 %
TYPES OF ASSET:
1. LAND: Land held by MEPCO is of two types.
a. FREEHOLD LAND:
This land has been purchased by MEPCO and in its Property used for various
purposes.
b. LEASEHOLD LAND:
MEPCO also has acquired Land through Lease Agreement from different
organizations.
2. BUILDING:
Building of MEPCO include
1. Operation Offices Building (Non Residential).
2. S.S&T Buildings.
3. Residential Buildings.
5. VEHICLES:
All vehicles used MEPCO are its asset and record is maintained in asset section.
6. DISTRIBUTION EQUIPMENT:
These Equipments can be held by various offices are as follows.
Distribution Plant Assets
Account Title Account Code
132 KV Grid Station Equipment 10601
66 KV Grid Station Equipment 10602
132 KV Distribution Lines 10605
66 KV Distribution Lines 10606
11 KV Distribution Lines 10608
400 V Low Tension Line 10609
Under Ground Conductor and Devices 10612
Distribution Transformers (11 KV/400 V) General 10613
Service Drop General 10614
Meters-General 10615
Distribution Transformers (11 KV/400 V) Industrial (0613) 10616
Service Drop Industrial 10617
Meter-Industrial (010615) 10618
Distribution Transformers (11 KV/400 V) Tube well (01613) 10619
Service Drop-Tube well (010614) 10620
Meter-Tube well (010615) 10621
Service Drop-Renovation (010614) Meter-Renovation (010615) 10623
Meter-Renovation 10624
Street Lighting and Signal System (010616) 10625
High Tension Lines Renovation (010617) 10626
Low Tension Lines Renovation (010618) 10627
High Tension Transformers (11 KV) 10628
Village Electrification (PWP, TWP) (010619) 10629
11 KV Distribution Lines (Deposits) 10630
Village Electrification (Capital) 10631
Punjab Government 10632
Transformers Transferred From Scrap 10634
MISCELLANEOUS EQUIPMENT
Arm’s Equipment, Rest Houses, Medical Equipments, Construction Equipment, Laboratory
Equipment, Work Shop Equipment, Transport Equipment.
SALARY SLIP
Divisional Accountants are not gazette but their BPS is 16. Above grade 16 Salary Slip is Issued
to Account Asst.or above.
OFFICERS:
The employ that are gazette and declare Officers by authority with Scale of 16 and above are
mentioned for Salary Slips. There Service Book is closed or not maintained. Salary Slips is also a
document of this file. “Services Statement”. It contains whole information’s of service life
(Changed, Transfer, etc)
OFFICIALS:
These employees who are not gazette and declared as officials known as Staff. There will be a
service book maintain their service record.
There is no Salary Slips involved for Staff and their pay is prepared by Pay Fixation Cell.
Allowances:
1. 50% Ad-hoc Relief Allowance(Running Basis)
“PPO BOOK” It is stand for “Pension Pay Order Book” it is prepared for retired employee and
signed by the D.M (OP) and Accountant.
By Services giving benefits it’s called “PENSION SERVICES” for working more than 10 years at
permanent post. Post-Retirement benefits that an employ might receive from some employer. A
Pension is essentially compensation received by the employee after he/she has retired.
A pension is a steady income given to a person (usually after retirement). Pension is typically
payment made in the form of a gurrented Annuity to retired or disabled employee. Some
retirement plan (or Superannuation) designs accumulate a cash balance (through a variety of
mechanisms) that a retiree can draw upon at retirement, rather than promising annuity
payments. These are often called Pensions. In either case, a pension created by an employer for
the benefit of an employee is commonly referred to as an occupational or employer pension.
Labor Unions, the government, or other organizations may also fund pensions.
CONDITIONS:
1. If service is less than five years than there was nothing too paid.
2. If service is less than ten years but more than five years than gratuity will be paid.
(Basic Pay × 1.5×Service Year)
3. If service is more than ten years same ratio of pension will be given. GLI (Group Life
Insurance) paid of employee died during service.WWF (WAPDA Welfare Fund) it can be
withdrawn in any special case.
TYPES OF PENSIONS:
1. SUPPERANNUATION:
This pension has been made for age of 60 years of employee after retirement.
2. RETIRING PENSION:
For this type of pension service must be for 25 years.
3. INVALID PENSIONS:
In case of disability factor involved.
4. FAMILY PENSION:
In case of death of employee.
5. GOVT. RETIREMENT:
At age 60 Govt must be retire the employee.
6. COMPULSORY RETIREMENT:
In any case of punishment Employee fired from its job.
7. COMPENSATION PENSION:
In case of ending section, post than offer employee to take another post or retirement.
CALCULATION FORMULA’s:
NOTE: Pension can be getting from any MEPCO office Region in whole Country and bill will be
sent to related office of Pension reimbursement.
In compilation there are 81 account Units and 31 Revenue Offices (RO) include Asst. Manager
and Customer Offices and also 31 Operational directors.
TRIAL BALANCE:
It is main and important result of accounting books. The Trial Balance can be prepared monthly,
quarterly and annually.
There are two main types of Trial Balance.
RECEIVABLE/PAYABLE (IOT)
It can also be made at the condition of such as one employee working at other place and being
get benefits from another place then such transaction have been made by this section known as
receivable and Payable.
FUNCTION OF IOT:
Inter office Transaction comprises of following major components.
WORKING:
Centralized the cash position in DISCO’s and NTDC, and gives SS (Super Subscribe Checque) to
control the movement of cash. And surpass the material from one to another store and in
emergency situation material taken from any DISCO’s and give SS cheque against payment
PROCEDURE:
Payable and receivable is always co. to co., Head office to head office, DISCO’s to DISCO’s,
Quarterly statements of accounts, six months transactions some consumers pay bill in another
place of co. Than evident note is issued and above stents also issued by payable and receivable
section. Also S.S.Cheques for store material issued.
AUDIT CELL
The Post Audit Party works under the control of the Finance Director. The main purpose of the
audit is to check and verify that all the payment, cash transaction, subsidiary books and cash
vouchers etc. are being kept and maintained according to the Rules and regulations as
prescribed by the company.
STATUARY AUDIT: This audit is taken by audit companies which are the most reliable into top
ten chart, Currently TASEER & HADI ( KPMG) CO. is Audited the MEPCO. It has been Prepare
final report for Public and performance of working of companies by the Govt Order.
ESTABLISHMENT
VOUCHERS:
This document is support of each transaction is called as voucher. Each activity / transaction are
to be recorded on the voucher. There are four types of vouchers...
CASH VOUCHERS:
All the vouchers pertaining to case are called cash vouchers. The vouchers regarding cash
receipt are called cash receipt vouchers while the vouchers regarding cash payments are called
cash payment vouchers.
BANK VOUCHERS:
All the transaction relating to Banks is recorded on the vouchers called as Bank Vouchers. The
voucher regarding the receipt through Banks are called Bank Receipt vouchers and the
vouchers regarding the payments through Banks is also called Bank Payment Vouchers.
JOURNAL VOUCHER:
All their transaction are recorded on “Journal Vouchers” e.g. regarding rectifications of errors,
miscellaneous classification, depreciation of fixed assets, provision of bad debts.
It also deals with throughout payment of an employee e.g. salary, medical allowance, TADA bills,
house rent, marriage fund and other benefits etc by establishments.
SALARY:
It includes basic pay according to pay scale chart +House Rent allowance in cities Multan,
Lahore, and Bahawalpur 45% and other cities 30%.
MEDICAL ALLOWANCE:
This allowance is in two types
i. Medical Facility
In medical facilities and green book has been made.
ii. Cash medical Allowance
In cash allowance get cash and white book has been made, and medical facility
get in emergency, officers are exempt this allowance.
MARRIAGE ALLOWANCE:
Employee personal marriage amount is fixed as 20,000 only. Employee can get this allowance
for his daughter marriage, and employee widow get allowance for two daughter’s marriage.
SCHOLARSHIP:
It has been given to the brilliant child of employee who top in school, college, university, on
different rates.
DISPATCHING:
Dispatching of notes also noted on register as same receiving posts procedure.
All services books and personal files are also watch over and handle by ADMIN.
Leave has been also mentioned and sanctioned by admin according to rule of 1982 under the
Act of 1958.
The double entry book keeping system is based on the principle of duality, which means that all
events of economic importance have two aspects (i.e. effort and reward, sacrifice and benefits,
source and uses) that offset or balance each other. In double entry system each transaction must
be recorded twice in such a way that the total amounts of debits and credits must be equalizes
each other. All accounting systems, no matter how sophisticated, are based on the principle of
duality.
A. REVENUE COLLECTION
The collection which is made through the electricity bills is called Revenue Collection. All the
Banks branches and Post Offices under the jurisdiction of the Company are allowed to collect
the Electricity Bills. A separate Bank Account and Cash Book is maintained for the purpose and
Divisional Offices are not allowed to withdraw any amount from the Electricity Collection
Accounts, if they need any funds for payment of cash they are required to prepare and submit
the fund demands to the Finance Directorate along with the relevant payments Vouchers.
B. SECURITY ACCOUNT
The amount of Security which is paid by the consumer for the new connections is transfer in the
name of security account.
EXPENSES
Cost of Electricity 61,886.892
Operating Expenses ( depreciation) 6,637.902
Financial Charges 304.739
Tax -
Total Expenses 68,829.533
Loss for the year (3,300.505)
FINANCIAL POSITION AS ON 30.06.2009
ASSETS (Rs. in Millions)
Tangible Fixed Assets 39,704.222
Long Term Advances / deposits 23.281
Current Assts 26,123.094
Total Assets 65,850.597
Equities & Liabilities
Tariff Pvt. Govt. Total
Industrial B-3 26 3 29
Industrial B-4 0 0 0
Bulk C-3 0 1 1
Railway Traction 0 5 5
5 KPP (MPA) 4 0 4
8 D.O.P ELECTRIFICATION) 2 1 1
General Manager (Training) office is functioning at WAPDA House, Lahore and controls various
training centers detailed below: -
Address:
MEPCO, Khanewal Road,
Multan.
Strength and weakness are basically occurring in the internal environments of the organization.
It provides the information that in which area we are strong and weak and it provides the
solution how we can overcome the weakness and utilize the strength in a right direction. The
SWOT analysis is a comprehensive and critical overview of the operations, procedures, rules
and regulations, services and other related activities, the analysis include the analysis of MEPCO
in the light of the specific variables which directly or indirectly affect the operations of the
MEPCO. The tool selected for the analysis of organization is SWOT analysis.
STRENGTHS:
The MEPCO top management is the combination of both experience and young energetic
professionals which are proving to be the real strength of MEPCO.
MEPCO website provides every information about MEPCO to the customers and
investors.
MEPCO has equipped with the latest technology.
MEPCO has good relation with different departments.
The MEPCO employees are locally so, the turnover rate is low.
The MEPCO has efficient internal audit department, which keep check and balance.
The MEPCO has experienced of strategic apex and managerial skilled staff.
Full support from Federal Government
The administrative cost of the company is very high due to which the profitability of the
company decreases.
There is still improvement of technology in the MEPCO like in computers.
There customer service are not up to mark they have to improve the customer services
to satisfy the customers
There divisions are not well furnished they have the need to improve them.
Telecom and Media revolution
Dependency on suppliers of power generation equipment.
Loss is occurred last 3 years in MEPCO but there is no control over expenses and
wastage.
OPPURTUNITIES:
The MEPCO is situated in the region where the customers are large in quantity and other
necessary related product is easily available in the market.
There is no competitor in the local market, there is a big opportunity to get more share.
Buyers of MEPCO services are easily available in the local market.
The extension plan of divisions by the MEPCO is very good to capture the market.
The MEPCO has maintained better relationship in the market which helps the MEPCO to
increase the customers.
The strategies of MEPCO are very strong which help them to get advantages over the
competitors.
Research and development in power generation equipment
Natural resources to increase water resources and cheaper power
There are rapid changes in technology of power generation and to coup with it ministry
will have to be planning for the future plans keeping in mind the changes
New power projects have the bargaining power for higher prices keeping in view the
high demand and supply gap in power sector.
One major threat to the MEPCO is increasing number of customers day by day.
Due to fluctuation occur in the supply is permanent threat to the MEPCO.
There is always a threat the government may impose some duties on the MEPCO.
Another threat to the MEPCO is change in day by day technology.
Withdrawal of support from suppliers.
Curtailment of budget.
Obsolescence of strategic equipment
There is not a long list of suppliers in power sector and the suppliers enjoy
monopoly to some extent and they can charge higher and delay supplies as there is
long waiting lists for equipment supplies
OBSERVATIONS
I have observers that there is need of improvement in the MEPCO Departments working
who still use manual systems.
Some time the employee doesn’t cooperate with customer they must have needed to
cooperate with customers to create good relationship with them.
I have also observe that there is no proper dress court of employee in the divisions so,
they have need to follow proper dress court
I have observed that there is need of safety department or some safety precaution for
employees of MEPCO.
I also observed one thing that Departments and sections not obey the Audit Committees
that cause the negligence of Misuse data.
CONCLUSION
I got a lot of experience in MEPCO. During my internship I come to know that the different
units are working under one umbrella. I have noticed that they are getting the benefits by
minimizing different costs which earlier they were paying due to lack of technology of
computer.
The MEPCO has latest technology for its services and they are serving the local market very
well. MEPCO has open door policy for all tackle all problems upfront. And May be The
Import Electricity Ships decrease load shedding. If Govt. examines the Audit committees
then wastage should be decrease. Merit, justice, fair play be the hallmark Transparency in all
fields Accountability of everyone.