INTERNSHIP REPORT ON

PAKISTAN TELECOMMUNICATION LIMITED

ABBOTTABAD

Submitted by

Fahad Khan

Roll # 248

Supervised by

Abdul Waheed

GOVT. COLLEGE OF MANAGEMENT SCIENCES

ABBOTTABAD

SESSION

2017– 2018
 INTERNSHIP REPORT ON

PAKISTAN TELECOMMUNICATION LIMITED

ABBOTTABAD

Submitted by

Fahad Khan

Roll # 248

Supervised by

Abdul Waheed

This Internship report is submitted to partial fulfilment of the

requirements for the degree of Master of Commerce awarded by
the Abbottabad University of Science & Technology

GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES

ABBOTTABAD

SESSION

2017- 2018
 Government college of Management Sciences
Abbottabad

APPROVAL COMMITTEE

1. External Examiner

Mr_________________ Signature___________________

2. Supervisor

Mr. Abdul Waheed Signature___________________

(Lecturer Commerce & Business Administration) GCMS Abbottabad

Head of Department

Mr. Mushtaq Ahmed Signature___________________

(Principal) GCMS Abbottabad

iii
 DEDICTION

I dedicate this report to my Beloved Parents

iv
 Abstract

It is considered appropriate now that the history of Pakistan Telecommunications is compiled,

from the pre-independence period starting from 1853 up to 2001. It should end up with a very
brief over-view. Of particular interest is the fifty two-year period of Pakistan
Telecommunications from 1947 to 2001. In this over-view, it is proposed to highlight mainly
the growth, technology, sector structure, organization, the lessons learnt and future trends.

To study an organization, one needs to have reliable and relevant data and information. The
study makes use of two kinds of data, gathered through different sources, which can be
grouped as primary and secondary data

The data which has gone through mathematical and statistical techniques after its
collection is called secondary data. The secondary data sources which were consulted during
my study are the manuals, rules and procedural hand books, brochures and annual reports of
PTCL material available at newsletter, internet and books available on management.

v
 Table of Contents
Abstract ....................................................................................................................................... v
Acknowledgement....................................................................................................................... ix

List of Abbreviations .................................................................................................................... x

Chapter No-1 ............................................................................................................................... 1
INTRODUCTION ............................................................................................................................ 1
1.1 BACKGROUND OF THE STUDY.............................................................................................. 1
1.2 PURPOSE OF THE STUDY ..................................................................................................... 1
1.3 SCOPE OF STUDY ................................................................................................................ 1
1.4 RESEARCH METHODOLOGY ................................................................................................. 2
1.5 Limitation of Study ............................................................................................................. 2
1.5 SCHEME OF THE STUDY....................................................................................................... 2
Chapter No- 2 .............................................................................................................................. 4
Introduction to Pakistan Telecommunication Company Limited (PTCl) ............................................ 4
2.1 Introduction & History ........................................................................................................ 4
2.1.1 Company Background................................................................................................... 5
2.1.2 Restructuring of PTCL ................................................................................................... 6
2.2Vision .................................................................................................................................. 6
2.3 Mission .............................................................................................................................. 6
2.4 Code of Conduct ................................................................................................................. 7
2.5 PTCL’S CORE OBJECTIVES .................................................................................................... 7
2.6 Features ............................................................................................................................ 8
2.7 Organizational Structure and / Hierarchy ........................................................................... 10
2.8 BOARD OF DIRECTORS ...................................................................................................... 12
2.9 Major services .................................................................................................................. 14
2.9.1 PTCL Smart TV............................................................................................................ 14
2.9.2 White Label Services .................................................................................................. 16
2.9.3 Landline..................................................................................................................... 16
2.9.4EVO Wireless Broadband ............................................................................................. 17
2.9.5 Broadband Pakistan ................................................................................................... 18
2.9.6 Smart TV (IPTV Service) ........................................................................................... 19
2.9.7 V-Fone....................................................................................................................... 20
2.9.8 International Network ................................................................................................ 20

vi
Chapter No.3 ............................................................................................................................. 23
Chapter No.3 ............................................................................................................................. 23
Product Introduction ................................................................................................................. 23
3.1 PTCL Landline ................................................................................................................... 23
3.1.2 Services for Corporate Customers ............................................................................... 23
3.1.3 Universal Access Number (UAN) ................................................................................. 24
3.2 V-fone.............................................................................................................................. 24
3.3 Ufone .............................................................................................................................. 24
3.3.1 KEY ACCOMPLISHMENTS ............................................................................................ 25
3.3.2 Performance .............................................................................................................. 25
3.3.3 Brand ........................................................................................................................ 25
3.3.4 International Coverage ............................................................................................... 26
3.3.5 Customer Service ....................................................................................................... 26
3.3.6 Network Coverage ..................................................................................................... 26
3.4 PTCL Broadband ............................................................................................................... 27
3.5 PTCL Smart TV .................................................................................................................. 27
3.6 EVO WIRELESS BROADBAND ............................................................................................. 27
3.7 Evo Wingle ....................................................................................................................... 27
3.8 Evo Charji ......................................................................................................................... 28
3.9 Competitor of Ptcl ............................................................................................................ 28
3.10 DIGITAL PHONE FACILITIES .............................................................................................. 29
3.11TOLL FREE SERVICE (0800)................................................................................................ 30
3.12 UNIVERSAL ACCESS NUMBER (UAN) ................................................................................ 30
3.13 UNIVERSAL INTERNET NUMBER (UIN) .............................................................................. 30
3.14 Premium services 0900 ................................................................................................... 30
3.15 BILL PAYMENT FACILITIES ................................................................................................ 31
3.17 NATIONAL TELECOMMUNICATION .................................................................................. 32
3.18.1 Human Resources Department ................................................................................. 33
3.18.2 Management Information System (MIS) .................................................................... 34
3.18.3 Marketing Division ................................................................................................... 34
vii
 3.18.4 Information Technology Department......................................................................... 35
3.18.5 Finance Division ....................................................................................................... 35
Finance Wing..................................................................................................................... 35
3.18.6 PTCL’s Basic Organizational Units .............................................................................. 40
3.18.7 Differentiated Departmentation................................................................................ 41
3.19 levels o f Organizational Chart ......................................................................................... 42
3.20 My Assignments: ............................................................................................................ 45
Chapter No-4 ............................................................................................................................. 47
Financial Analysis ....................................................................................................................... 47
4.1 Introduction ..................................................................................................................... 47
4.2 Balance Sheet................................................................................................................... 47
4.3 Income statement ............................................................................................................ 50
4.4 Horizontal Analysis of Balance Sheet.................................................................................. 51
4.4.1 Interpretation ............................................................................................................ 53
4.5 Vertical Analysis of Balance Sheet...................................................................................... 55
4.5.1 Interpretation ............................................................................................................. 56
Chapter No-5 ............................................................................................................................. 68
SWOT ANALYSIS ........................................................................................................................ 68
5.1 STRENGTHS ...................................................................................................................... 68
5.2 Weaknesses ..................................................................................................................... 68
5.3 OPPORTUNITIES ............................................................................................................... 69
5.4Threats .............................................................................................................................. 69
Chapter No-6 ............................................................................................................................. 70
Conclusion & Recommendations ................................................................................................ 70
6.1 Conclusion ....................................................................................................................... 70
References ................................................................................................................................. 75

viii
 Acknowledgement

I am full of gratitude to: Almighty ALLAH for giving me the life and energy to conceive
and actualize the internship and this report.

Our learned and erudite Supervisor Abdul Waheed Government college of Management
Sciences Abbottabad for his inspiring guidance, keen interest, and continuous encouragement
through out my internship report making efforts.

All Management Sciences Staff (GCMS Abbottabad) who implicitly or explicitly helped me
in my Internship Report.

Last but not the least I am highly indebted to staff of PTCL Abbottabad for providing me the
opportunity and support to accomplish my Internship.

Fahad Khan

ix
 List of Abbreviations

3G Third Generations

4G Fourth Generation

CSR Customer Service Representative

NP Non-Personal

PTA Pakistan Telecommunication Authority

PTCL Pakistan Telecommunication Company limited

SMS Short Message Service

SEP: Student Entrepreneur Program

SIM: Subscriber Identity Module

UAE: United Arab Emirate

UAN Universal Access Number

UIN Universal Internet number

VAS: Value Added Service

x
 EXECUTIVE SUMMARY

The telecommunications industry is at the forefront of the information age²delivering

voice, data, graphics and video at ever increasing speeds and in an increasing number of ways.
Whereas wire line telephone communication was once the primary service of the
industry, wireless communication services and cable and satellite program distribution make
up an increasing share of the industry.

The largest sector of the telecommunications industry continues to be made up of

wired telecommunications carriers. Establishments in this sector mainly provide telephone
service via wires and cables that connect customers premises to central offices
maintained by telecomm urinations companies. The central offices contain switching
equipment that routes 1content to its final destination or to another switching center that
determines the most efficient route for the content to take.

My internship started with the official working hours starting from 9am to 4pm. During the
internship,

This Report includes 6 chapters

Chapter 1 contains Introduction about the study conducted,

Chapter 2 includes introduction about the Organization, the Structures of the Organization,
which have the local and the nation-wide structure of the organization,

Chapter 3 is about the product & Services that PTCL provides

Chapter 4 is about the Financial Analysis of PTCL with the discussion of the overall
activities conducted during the internship.

Chapter 5, includes the SWOT Analysis of PTCL

Chapter 6 This Chapter consists of the Conclusion I did during the internship duration,
Recommendations that I though would benefit the organization.

After the Final Chapter All the Sources used for this report are listed in the references, and all
the helpful Material i.e charts Tables are given in the annexure.
xi
 Chapter No-1
INTRODUCTION

1.1 BACKGROUND OF THE STUDY

For getting the Master degree in Commerce, each student is required to spend at least
8 weeks as an internee in a recognized organization. The students are required to work
in their specialized fields.

The main purpose of this program is to make students familiar with the practical
work, as there is great difference between the theory they have learnt during their
M.Com (Finance), and how the job is practically done.

Another important aspect of the internship program is that the internee is placed in
most of the departments of the organization through job rotation. It provides them
with a glance of each department, as the working period is too short for learning in
detail.

1.2 PURPOSE OF THE STUDY

 Fulfillment of the degree requirement of the M.Com from AUST Abbottabad 


 To gain practical knowledge. 

 To make relevant recommendations in the light of the analysis made. 


1.3 SCOPE OF STUDY

1) It is a compulsory requirement for the award of a Master’s Degree in

Commerce

2) It will help present and prospective students of the department in

making assignments and writing reports on the organization.

3) It can also provide help to the organizations management in identifying

their Strengths, Weaknesses, Opportunities and Threats.

4) It can also provide assistance to students seeking financial data for analysis.
1
1.4 RESEARCH METHODOLOGY
The methodology that is adopted for this report is based on both the primary as well
as secondary data. The sources of primary data were:

1. Formally arranged interview/ discussions with Management, Staff of the

PTCL

2. Personal observations.

The sources of secondary data were;

1. Annual reports

2. Over view of the PTCL

3. Official Website of PTCL

During Internship , it was observed that enough written material regarding the
Finance not available, so it had to count on the personal observation and interviews
with employees.

A lot of time was spent in PTCL at each department and the information was
collected from discussions and interviews with Managers Officers, so most of the data
of this report is primary source.

1.5 Limitation of Study

The span of operation is too large to be covered completely in short time of 6 weeks.
Which does not permit to fully analyze and understand the function, and the privacy
policy of PTCL also limits access to the organizational data and information that is
termed as confidential.

1.5 SCHEME OF THE STUDY

Scheme of the report is straight forward. The report is divided into following Chapters
Chapter 1 contains Introduction about the study conducted,

Chapter 2 includes introduction about the Organization, the Structures of the

Organization, which have the local and the nation-wide structure of the organization,

Chapter 3 is about the product & Services that PTCL provides

2
Chapter 4 is about the Human Resource Department in which I conducted the
Internship, along with the Services that are provided by the specified department at
national and local level, winding the section with the discussion of the overall
activities conducted during the internship.

Chapter 5, includes the SWOT Analysis of PTCL

Chapter 6 This Chapter consists of the Conclusion I did during the internship
duration, Recommendations that I though would benefit the organization.

After the Final Chapter All the Sources used for this report are listed in the references,
and all the helpful Material i.e charts Tables are given in the annexure.

3
 Chapter No- 2

Introduction to Pakistan Telecommunication Company

Limited (PTCl)

2.1 Introduction & History

PTCL was incorporated on December 31st 1995 and commenced business on January
1st 1996. The idea behind this was to provide better services to its customers. This
was established to undertake the telecommunication business formally carried out by
Ex-PTC. It was responsible for carrying out all kinds of telecommunications activities
in the country. It was required to look after the existing telecom installations and their
automation and development. It was also to under take development program in
telecom field. All properties, assets, obligations and liabilities of PTC were
accordingly transferred to the PTCL on the 01-01-1996.

The P.T.C.L. is a prestigious organization and telecom services in the country are
getting better and better, since its incorporation.
The telecommunications industry is at the forefront of the information age delivering
voice, data, graphics and video at ever increasing speeds and in an increasing number
of ways. Whereas wire line telephone communication was once the primary service of
the industry, wireless communication services and cable and satellite program
distribution make up an increasing share of the industry.

These new services have been made possible through the use of digital technologies
that provide much more efficient use of the telecommunications networks. One major
technology breaks digital signals into packets during transmission. Networks of
computerized switching equipment, called packet switched networks, route the
packets. Packets may take separate paths to their destination and may share the
paths with packets from other users. At the destination, the packets are reassembled,
and the transmission is complete. Because packet switching considers alternate routes,
and allows multiple transmissions to share the same route, it results in a more
efficient use of telecommunications capacity as packets are routed along less
4
congested routes. Wireless telecommunications carriers, many of which are
subsidiaries of the wired carriers, transmit voice, graphics, data, and Internet
access through the transmission of signals over networks of radio towers. The
signal is transmitted through an antenna into the wire line network. Other
wireless ser vices include beeper and paging services. Because wireless devices
require no wire line connection, they are popular with customers who need to
communicate as they travel, residents of areas with inadequate wire line service, and
those who simply desire the convenience of portable communications.

Source: https://ptcl.com.pk/Info/about us

2.1.1 Company Background

Pakistan has made steady progress in expanding telecommunication networks and
services in recent years. In Pakistan this industry had few big giants in the past with
PTCL being the sole provider of landline telephone service in the country. At present
the organizations principal activity is to provide telecommunication services all over
the country. It offers both domestic and international services throughout Pakistan.
PTCL also manufactures telecommunication related equipment.

Pakistan Telecommunication Company Limited had exclusive rights to provide basic

telecom services in Pakistan till the end of year 2002. With the announcement of
Deregulation Policy by the Government of Pakistan in 2003, PTA has issued licenses
for basic telephony to the private sector in Pakistan who will be competing PTCL, the
incumbent. From the humble beginnings of Posts & Telegraph Department in 1947
and establishment of Pakistan Telephone & Telegraph Department in 1962, to this
very day, ours is a story of commitment and vision.

Pursuing a progressive policy, the Government in 1991, announced its plans to

privatize PTC, and in 1994 issued six million voucher s exchangeable into 600 million
shares of the would-be PTCL in two separate placements. Each had a par value of Rs.
10 per share. These vouchers were converted into PTCL shares in mid- 1996.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis

for PTCL monopoly over basic telephony in the country. It also paved the way for the

5
establishment of an independent regulatory regime. The provisions of the Ordinance
were lent permanence in October 1996 through Pakistan Telecommunication
(Reorganization) Act. The same year, Pakistan Telecommunication Company Limited
was for med and listed on all stock exchanges of Pakistan

Source: https://ptcl.com.pk/Info/aboutus

2.1.2 Restructuring of PTCL

The governments efforts to restructure and privatize PTCL have been on-again off-
again since1991. It had an offer in the late 1990s for 26 percent equity, reputedly
totaling $3 billion, butheld out in negotiations and ultimately missed the unique global
market window at that time. Since then, it has had difficulty attracting potential
buyers.
Investors have been concerned about political risk, and appropriate support from the
government to transform the utility into a commercially-oriented corporation. With
fortunes rising in the local telecom sector, the government hoped to make
privatization of the company a landmark deal for broader reform of the economy. A
successful deal would demonstrate the governments increasing support for market
capitalism and, it was hoped to, boost anemic levels of direct foreign investment.

Source: https://ptcl.com.pk/Info/aboutus

2.2Vision

“To be the leading Information and Communication Technology Service Provider in

the region by achieving customers' satisfaction and maximizing shareholders' value”

Source: https://ptcl.com.pk/Info/aboutus/vision

2.3 Mission

To achieve our vision by having:

 An organizational environment that fosters professionalism, motivation and

quality 
6
  An environment that is cost effective and quality conscious 

 Services that are based on the most optimum technology 

 "Quality" and "Time" conscious customer service 

 Sustained growth in earnings and profitability 

Source: https://ptcl.com.pk/Info/aboutus/mission

2.4 Code of Conduct

CORE VALUES

 Professional Integrity 

 Teamwork 

 Customer Satisfaction 

 Loyalty to the Company 

STATEMENT OF ETHICS

PTCL is committed to sustaining the utmost level of integrity in business through

compliance with the highest standards of ethical conduct which is critical to maintain
the trust and credibility with customers, partners, suppliers, and employees. This
document outlines these fundamental principles applicable throughout the Company
and affirms the commitment of every member of the Company towards upholding of
these valued beliefs through their genuine enactment in daily roles and
responsibilities.

Source: https://ptcl.com.pk/Info/aboutus/corevalues

2.5 PTCL’S CORE OBJECTIVES

The primary objective of Pakistan Telecommunication Company Limited is to

provide telecommunication services to the people in the country or in short to satisfy
the telecommunication needs of its customers. Responding to the rapid economic and
technological growth, the company is determined to meet the challenge of expanding
needs of telephone and data communication such as public data network, integrated
services digital network and Internet services.

7
The major focus of attention is to improve and expand the services, minimize the
faults and provide communication facilities to rural areas. It is also one of the major
objectives of management that the company should not improve its performance but
also encourage the private sector to enter the Tele business. The company has entered
the domain of free market economy, which necessitates the liberal management
policies and private sector.
The following basic policy steps have been taken to meet the objectives laid in PTCL
Act to expand and operate telecommunication services in the country. The main
objective of any company is to earn the profit and minimize expenses by winning
goodwill in the market

Source: https://ptcl.com.pk/Info/aboutus/corevalues

2.6 Features
Pakistan Telecommunication Company Limited (PTCL) is the primary provider of
Telecommunication services in Pakistan. The range of services include basic
telephony, telegraph, fax, telex, Public data, Internet, E-mail, ISDN(Integrated
Services Digital Network),Universal Access Numbers(UAN), another value-added
services.
Pakistan Telecommunication Company Limited is a professionally managed company
and has initiated measures, with active support of the Federal Government, to
inculcate a corporate culture that benefits company. Pakistan Telecommunication
Company Limited believes that it has an inherent potential that it can exploit to
emerge as an important and active business entity. Pakistan Telecommunication
Company Limited has some basic strength and the potential that needs to be exploited
into real business opportunities. The Directors of the Company feel that a firm and
unwavering commitment towards provision of a complete range of market driven
telecommunication services to its customers using state of the art technology proven
products and a customer care approach is essential in a rapidly expanding telecom
market. The radical change from a monolith state controlled culture to a open market
competitive environment. The customer is becoming and more conscious of the value

8
of telecom services in an improving business environment.
The advent of digital systems, increasing application of computer technologies and
development of wide-band systems has generated new customer needs. Innovative
products and services such as cellular mobile, high-speed data, Internet etc are much
in demand. The current decade has proved to be the period of sector restructuring and
growth globally. To keep pace with the changes and to meet the emerging new
demands, Pakistan Telecommunication Company Limited has adjusted its programs to
meet the requirements of the market. Traditional telecom monopolies like Pakistan
Telecommunication Company Limited need to explore new avenues of technology
and financing to accomplish a quantum leap in growth and bridge the gap between
demand and supply, still remaining financially viable. The Company has taken
initiatives and a change is gradually becoming visible through expanded capacity and
increasing revenue.
Pakistan Telecommunication Company Limited has taken decisions to cope with the
competition within the next years. The initiatives taken resulted in the establishment
of 100% Pakistan Telecommunication Company Limited owned subsidiaries like Pak
Telecom Mobile Limited.Paknet and Pak Telecom Pay Phone services limited. These
new entities shall provide cellular mobile information technology, Internet, payphone,
prepaid calling cards and other range of services, Pakistan Telecommunication
Company Limited made a conscious decision to enter the cellular business as it has
tremendous potential and an accelerated annual growth of about 60%which is likely
to continue for many years.

Pakistan Telecommunication Company Limited has been successful in obtaining a

Cellular Mobile License for its subsidiary and has selected the GSM 900 state -of
the²art technology, which is growing at a much faster rate internationally. Pak
Telecom Mobile Limited was incorporated on 18th July 1998 to establish and run this
new business independent of Pakistan Telecommunication Company Limited with
full accounting separation thus creating a level playing field for industry competitors.

Pakistan Telecommunication Company Limited is following a business-oriented

policy to associate private entrepreneurs in telecom sector development. The options
are based on interconnect and revenue sharing arrangements with license operators
and through out-sourcing revenue sharing with 0 & M contractors as business

9
partners. PTCL has successfully entered into arrangements with foreign and local
telecom companies and has signed three contracts prepaid calling card service to
promote international traffic.

Source: https://ptcl.com.pk/Info/aboutus/companyprofile

2.7 Organizational Structure and / Hierarchy

Source: https://www.ptcl.com.pk/Financials/PTCL-Annual-Report-2017

10
An Organizational Structure clarify the roles of personnel of an Organization and to
determine who has to do what task, which is responsible for what, objectives to be
achieved, who is to report to whom and to remove the obstacles for performance
caused by confusion and uncertainty of job assignment as well as to make easy
decision- making and communication networks reflecting and supporting organization
objectives.
The head of Pakistan Telecommunication Company Limited is called “President”.
Then come the SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance),
SEVP (Operations), SEVP (Technical), and SEVP (Human Resource Management),
SEVP (Marketing & Business Development). Then there is a chain of Executive Vice
Presidents (EVPs) like EVP (Finance Central), EVP (Marketing), EVP (HR Central),
EVP (Accounts), EVP (Operation), EVP (Information Technology, Training &
Research), and EVP (Revenue). All these are appointed at Pakistan
Telecommunication Company, Headquarters at G-8/4, Islamabad. Apart from these
EVP, there are also EVP (Operation), EVP (HR) etc who are heading the other
regions of PTCL in major cities country wide. Then there are Chief Engineers and
General Managers at H/Qs who report to their relevant EVP. Then there are Senior
Managers, Deputy Directors, Assistant Directors, Account Officers, Assistant
Account Officers, Financial Analysts, Marketing Managers, Computer Programmers,
and IT Specialists etc. There are also Regional Heads (General Managers) to head
PTCL Regions then come the Senior Managers (Operations), Senior Engineers
(Operations), Engineers to look after the telecom system of Regions. There are also
Senior Managers Finance, Account Officers and Accountants to Handle Regional
account and billing matters. Manager HR & his staff are responsible to take care of
Personnel affairs at Regional Level. In non-gazette staff there are Engineering
Supervisors Operations /Switching Power plant /Optical Fiber system/M.W Media,
Account Assistants, Stenographers, Assistants, Key Punch Operators, Telecom
Technicians, Upper Division Clerks, Lower Division Clerks, Line Men, Wire Men,
Drivers, Exchange Cleaners, NaibQasids and Peons etc. All the staff is recruited by
the HR Department headed by SEVP HR. The HR experts are responsible for hiring
& to further streamline its recruitment process

11
2.8 BOARD OF DIRECTORS

It is the highest body of PTCL, which has been rested the function of policy
formulation. The directors appointed shall not be less than seven (7) in numbers.
(Presently it has 10 members). There is general body meeting once a year of all the
shareholders to elect the members of board of directors. A director elected shall hold
office for a period of three years unless the earlier resigns, becomes disqualified from
being a director or otherwise ceases to hold office. A retiring director shall be eligible
for re-election.

Mr. Rizwan Bashir Khan

Chairman PTCL Board

Mr.Hesham Abdulla Al Qassim

Member PTCL Board

Mr. Shahid Mahmood

Member PTCL Board

12
Mr. Khalifa Al Shamsi

Member PTCL Board

Mr. Mudassar Hussain

Member PTCL Board

Mr. Tariq Bajwa

Member PTCL Board

Mr. Hatem Dowidar

Member PTCL Board

13
Mr. Serkan Okandan

Member PTCL Board

Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani

Member PTCL Board

Source: https://ptcl.com.pk/Home/BoardofDirectors?linkId=109

2.9 Major services

2.9.1 PTCL Smart TV

PTCL wishes you Eid Mubarak in advance and brings ultimate Eidi for your kids!
Enjoy e-junior cartoons & TV programs absolutely FREE from 23rd June till 22nd
July 2017 on Smart TV and Smart TV App.

PTCL Smart TV is Pakistan’s pioneer IPTV service, offering viewers high quality
television with a range of exciting features designed to inform and entertain.
14
 The service currently offers 100+ live TV channels and over 2000 hours of
entertainment content through its Video on Demand service available in 150 cities.
PTCL Smart TV delivers television programs to households via broadband connection
and requires a subscription and a set-top box. However, users without broadband can
buy PTCL Smart TV on its own.

Smart TV offers key advantages over conventional cable TV including higher

image quality and clearer sound.

Advantages

 DVD quality movies, dramas, documentaries 


 Watch 100 + TV channels 

 Catch Up TV 

 Recording capability 

 Playback / Rewind live TV channels at any time 

 Parental Lock facility on any channel 

 Mark, search and select your favorite programs 

 Higher quality audio and video 

Source: https://ptcl.com.pk/Info/Company-Profile

Pricing

Bundle Detail Price

Smart Pack
Smart TV bundled with 256k
(new Rs. 749 per month
unlimited broadband
customers)

Smart Pack
Smart TV bundled with 256k Rs. 749 per month + one time
(existing
unlimited broadband downgrade charge of Rs. 500
customers)

15
Smart TV on
Smart TV without broadband Rs. 699 per month
its own

Video On Demand Pricing

a). VOD is priced at Rs 25 per movie for 48 Hours. Customers can subscribe to a
movie at Rs 25 and can watch/re-watch that movie multiple times within the
next 48 Hours.*

b). Customers can buy 30 movies bundle for a fixed price of Rs.299 per month**.

c). Customers can also choose between 10 Movies Bundle at a price of Rs.149 , 15
Movies Bundle at a price of Rs. 199 per month, e-junior for a price of 299/month,
ICLFIX for a price of 149/month and Extreme Sports at a price of 299/month.

*Package option ‘a’ will be readily available on all existing and new Smart TV
Connections with subscription.
**Package option ‘b’ can be activated by calling at the PTCL contact center at 0800 8
0800.

Source: https://ptcl.com.pk/Info/Company-Profile

2.9.2 White Label Services

PTCL customers can now provide uninterrupted services to their clients without
undertaking large scale investment in infrastructure or developing expertise in their
own network.

PTCL White Label Services are focused on speed and simplicity at minimal capex.
This enables our customers to offer their own branded WLL, DSL etc to customers
nationally, together with an array of key support services.

2.9.3 Landline

PTCL landline has always been a part of family and providing services from
generations and it continues to be the primary choice of customers for making voice
16
calls for many decades. PTCL gives its customers highest quality at very affordable
rates along with attractive packages and Value Added Services to choose from.
PTCL offers many attractive packages like Freedom Package, International
Packages, Mobile Buckets & Double Up Unlimited (double play services)

Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110

2.9.4EVO Wireless Broadband

PTCL EVO Wireless Broadband is Pakistan’s fastest wireless internet which offers its
customers – “superior high-speed wireless internet experience”. EVO Wireless
Broadband is enabling the wireless broadband revolution in Pakistan like never
before. PTCL EVO has revolutionized the way people connect to the internet. PTCL
EVO gives its customers the advantage of seamless internet connectivity across
Pakistan. EVO coverage is in over 350 cities, whereas EVO customers can also enjoy
CDMA-1X data rates of up to 153.6 Kbps at more than 1000 destinations across
Pakistan.

PTCL Introduced EVO Nitro in Pakistan - “The World’s first & most cutting-edge
EV-DO Rev.B commercial network”. PTCL is the first operator in the world to
commercially launch EV-DO Rev.B products, which offer blazing fast speeds of up to
9.3 MBPS.

EVO Nitro is all set to meet the next-generation’s need for ultimate speed & superior
performance. It is the next step in Evolution of the Wireless Broadband Revolution!

Whether it is streaming High Definition video or music, conducting a video

conference while simultaneously browsing the Internet or uploading multimedia
content, in the Nitro Universe, everything happens at the speed of light.

PTCL introduced Pakistan’s First Enabled Smartphone Android Tablet—EVO Tab.

Powered by Google Android Froyo 2.2 OS, EVO Tab is a 7’’ capacitive multi
gestures touch screen tablet packed with features of both a tablet and a GSM phone

17
that lets you surf, talk, tweet & do a lot more simultaneously on-the-go in more than
350 cities nationwide

PTCL has introduced pocket-sized EVO 3.1 mbps & Nitro 9.3mbps Wi-Fi Clouds that
enable its customers to create instant Wi-Fi hotspot. Users can connect up to 5 Wi-Fi
gadgets simultaneously, use these as external storage device via the provided Micro
SD Card slot, and also use these to charge other devices. Both the Clouds have a
super-charged built-in battery that lasts up to 12 hours.

Introducing Pakistan’s first Wireless Broadband USB modem with built-in Wi-Fi
hotspot - EVO Wingle is all out & about! The most talked about futuristic Wi-Fi tool
that lets you effortlessly connect multiple Wi-Fi gadgets simultaneously at Hyper
Speeds of up to 9.3 Mbps* in over 250 cities, and auto switch over to EVO 3.1 Mbps
speeds in over 350 cities. It lets you connect ’n’ share effortlessly through any
external USB power adapter.

Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110

2.9.5 Broadband Pakistan

The largest and the fastest growing Broadband service in Pakistan, PTCL Broadband
is making great positive changes in the lives of millions of people living in the
country. Serving over 1.3 million satisfied customers in over 2000 cities and towns
across Pakistan, PTCL has brought revolutionary efficiency and effectiveness in all
segments of the society, be it the rural or the urban. Since its launch on 19th May
2007, all PTCL Broadband packages are designed for users to experience high-speed
internet access with unmatched reliability, affordability and connectivity all at the
same time.

PTCL holds credit for pioneering and steadily revolutionizing the broadband culture in
Pakistan. Till about a decade ago, there was very little awareness in the country about
broadband & high speed internet services. Today, PTCL has made broadband technology
affordable by lowering the barriers to entry, by geographically bringing the service
within the reach of a common user across Pakistan, and by continuous improvements in
customer care for offered services. With Broadband Pakistan, all our

18
subscribers get the chance to experience unlimited downloads, high speed
browsing, uninterrupted video streaming, improved gaming experience, and access
to rich HD multimedia resources over the internet.

Unique offers that make PTCL Broadband unmatchable are special packages for the
student segment, FREE Wi-Fi modem, as well as FREE dial up service for Broadband
customers. PTCL also offers FREE personalized e-mail accounts exclusively for all its
broadband users. Offering the nation’s most popular Broadband service,

Broadband Pakistan is contributing in socio-economic development of Pakistan and

has rightly positioned PTCL as the nation's information backbone. In addition to the
positive contributions made, new discounted packages are also continuously being
introduced in order to benefit the customer.

For a new Broadband connection, you can simply dial 0800 8 0800 or visit
www.ptcl.com.pk

Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110

2.9.6 Smart TV (IPTV Service)

PTCL entered the media sector on 14th August 2008, by launching a digital
interactive television service for the first time in Pakistan. PTCL brought Pakistan in
the list of a few countries across the globe that offer this state of the art interactive TV
service to its subscribers. PTCL SMART TV service using its state of the art
Broadband network employs the IPTV (Internet Protocol TV) technology.

Branded as ‘PTCL Smart TV’, the service includes Interactive Television, Broadband and
voice telephony all at the same time on PTCL’s telephone line. Besides offering the
highest digital quality TV picture, the most revolutionary section of this offering is the
ability to watch programs of previous four days; this feature is called catch up TV. The
PVR feature allows viewers to record their favorite programs that are to be aired in the
next 4 days and watch these programs at their convenience. Similarly users can also
‘rewind’ and ‘pause’ live TV channels through TSTV ( Time Shift Television) feature,
the ability to block / unblock any TV channel for parental lock and the ability to search
through video on demand content. Currently PTCL Smart TV offers its

19
viewers 140 + live channels and over 2000 hours of content through its Video- on
Demand service’. The service is available in more than 150 cities across Pakistan and
PTCL is planning to expand to all remaining cities and towns across the country
during the coming years

Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110

2.9.7 V-Fone

PTCL also continues to be the largest CDMA operator in the country with
approximately 1.4 million Vfone customers. It gives the liberty of payment in both
prepaid and postpaid options.

It offers fixed wireless telephone for your homes & business. With CDMA2000 1X
technology, ours is the largest WLL network with a capacity of 2.6M, covering over
10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet
access (153.6kbps), SMS and for EVDO Broadband.

Vfone can be bought from our OSS (One Stop Shops) or from any PTCL franchisee.
To get further details about your nearest PTCL OSS/franchisee please dial 1236.

Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110

2.9.8 International Network

PTCL’s ability to support both individual and corporate customers on a cross-border

basis is anchored by its extensive network of submarine cables. In order to ensure
service availability to expanded customer base of PTCL, the said bandwidth
procurement was strategically spread on each of our existing three submarine cable
size. I-ME-WE, SEA-ME-WE3 and SEA-ME-WE4. PTCL is the only telecom
operator in Pakistan having a network of three redundant and resilient submarine
cable systems thus offering its customers better quality of service.

20
SEA-ME-WE-3 (South East Asia - Middle East and Western Europe - 3)

Sea-Me-We 3 is one of the longest cables systems in the world with a total length of
39,000 km. It includes 39 landing points in 33 countries and 4 continents from
Western Europe (including Germany, England and France) to the Far East (including
China, Japan and Singapore) and to Australia. The use of Wavelength Division
Multiplexing greatly increases the capacity of the network allowing high quality
transmission all the way over distances as far as from Germany to Australia.

SEA-ME-WE-4 (South East Asia, Middle East and Western Europe- 4)

The total length of the SEA-ME-WE 4 submarine cable system is approximately

20,000 km which consists of the main backbone across the Eastern and Western
worlds and links 14 countries with 16 landing stations across Europe, Middle East and
Asia. The system is amongst the most economical cable systems in the region and is
built with state-of-the-art Terabit DWDM technology to achieve ultra-fast terabit per
second connectivity. The construction of this cable system is testimony to the growing
demand for high capacity broadband links that are essential in today’s world of high
speed international connectivity and online business.

I-ME-WE (India-Middle East-Western Europe)

PTCL is a member of IMEWE Cable Consortium with its landing station at Karachi.
IMEWE Submarine Cable is a Tera bit capacity submarine cable system connecting
India to Western Europe through Middle East. The Cable system is 12,000 km long
with 10 landing stations in 8 countries. The cable system is a three-fiber pair DWDM
system with 128 wavelengths per Fiber pair. IMEWE cable system plays a pivotal role
in meeting the exponential growth of bandwidth in the region.

Satellite Communication

PTCL has Intelsat Standard Earth Stations near Karachi and Islamabad. These
installations provide the diversity for International voice connectivity and also work

21
as Hub for domestic satellite users. There are four Intelsat Standard B Earth Stations
at Islamabad, Gilgit, Skardu and Gawadar.

Source : https://ptcl.com.pk/Home/PageDetail?ItemId=41&linkId=110

22
 Chapter No.3

Product Introduction

3.1 PTCL Landline

PTCL is one major service is that it provides Telecommunication Service to

Pakistan for both domestic and international communication.
For local calls the code used is non-STD. For calls to other cities (e.g. Karachi to
Lahore) the code is called STD. For International calls the code used is ISD.
Dialing System
When dialing on landlines, calls made within cities are considered local calls. Calls to
other cities (e.g. Karachi to Lahore) are considered long distance calls and are
metered according to distance.
(e.g. When dialing to Lahore from Karchi have to dial the code for Lahore then
followed by the number of the destination, therefore you dial 0423-XXX-XXXX ).
For local calls, you just dial the local number. For international calls, you dial "00"
followed by the country code. (E.g. For calls to the UK from Pakistan you dial 00 - 44
- XXXXXX).

3.1.2 Services for Corporate Customers

PTCL is striving hard to facilitate its valued corporate customers at each level of
service. PTCL offers a host of unmatched services to meet the needs of the Corporate
Customers. The list of Corporate Services is given as under. For more information
regarding any of the following services, PTCL Corporate Customer Centers can be
contacted.

INBASED VALUE ADDED VALUE ADDED SERVICES

SERVICES

23
  
0800-Toll Free Universal Access Number (UAN)
 
PTCL Calling Cards Universal Internet Number (UIN)
 
Domestic And International ISDN PRI
 
Premium Rate Service - 0900 TelePlus (ISDN/BRI)
 
Virtual Private Network Local

3.1.3 Universal Access Number (UAN)

UAN (Universal Access Number) service is ideal for organizations Engaged in
marketing of products or services. Here is a list of business that can avail UAN
Service.

 Banks  Insurance
 Newspapers  Credit Card
 Airlines  Companies Travel
 Hotels  Courier Services
 Shipping Lines  Utility Services
 Consumer Products Companies  Trading Companies
 Stock Brokers

3.2 V-fone

It is a product which is wireless. We can use anywhere in Pakistan. Internet and web
browsing is also its feature. It is under CDMA.V-fone also providing the internet
facility it works such a ptcl landline function.

3.3 Ufone

UFONE (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL

commenced its operations on 29th January 2001 as a GSM 900 service provider.
Since the outset, it has expanded its coverage and customer base at a rapid pace and
established itself as one of the leading cellular service providers in Pakistan.

24
Ufone is now considered to be one of the most active, aggressive and innovative
players in the mobile sector of Pakistan.
The growth of the cellular industry is a direct result of the successful implementation
of the telecom deregulation and cellular mobile policy by the Ministry of IT and
telecommunications (MOIT&T) and the support, guidance and timely enforcement of
regulatory process by the Pakistan Telecommunication Authority (PTA).

3.3.1 KEY ACCOMPLISHMENTS

Ufone has always played a pivotal role in the development of the cellular market in
Pakistan.For the most part, it has been a step ahead in introducing innovative products
to the market. Ufone was a pioneer in launching the GPRS services and Multi-media
Messaging Service (MMS) in Pakistan, and lead the way in introducing GPRS
international roaming and prepaid international roaming for these services in the
Pakistani market.

3.3.2 Performance
The customer focus and best offering has allowed Ufone to build a subscriber
base of over 20 million in less than a decade. Ufone has network coverage in 10,000
locations and across all major highways of Pakistan.
Ufone currently caters for International Roaming to more than 288 live operators in
more than 160 countries. Ufone also offers Pakistan’s largest GPRS & BlackBerry
Roaming coverage available with more than 200 Live Operators across 122
countries. More recently, Ufone has become a focused and intensive leader in VAS,
constantly introducing innovative services, which have been the first of their kind in
the Pakistani cellular industry.

3.3.3 Brand
While keeping its tradition of being the trend setter in the industry, Ufone changed the
image of mobile phones from a luxury only affordable by the elite, to a necessity
affordable by the common man.
Since its inception, Ufone has positioned its brand for masses. In keeping with the
upcoming competition and market dynamics, Ufone increased its focus on the youth
segment(which comprises 50% of the population), with the Prepay brand. By
designing market focused products, Ufone’s brand team launched aggressive
campaigns, which further increased the brandequity. The new brand image gained

25
huge popularity amongst the targeted market. A recent marketing survey conducted
by a prominent marketing research company showed that Ufone has considerably
increased its brand visibility and image. Ufone’s Prepay brand is now considered to
be one of the most favored brands by the youth market and is followed by other
mobile operators launching their respective brands for the youth market.

3.3.4 International Coverage

Ufone provides International Roaming facility with more than 150 international
operators across79 countries. Ufone has GPRS roaming agreements with several
international operators and also provides prepaid roaming facility to selective
destinations.

3.3.5 Customer Service

Ufone is proud to have an efficient and friendly customer service through 21
company-owned Sales & Customer Service Centers and nearly 250 franchisees across
the country.
The outlets are able to service the customers with innovative solutions, and are
empowered with Web based franchise management systems.
Ufone is poised to face the ever increasing challenges of the market and is confident it
will attract new customers. It has the ability to retain its existing customer base with a
high level of customer satisfaction via optimum network service and a 24hour call
center facility.

3.3.6 Network Coverage

Ufone has always believed in a solid commitment to growth, security and
reliability. Therefore, Ufone has always balanced its expansion efforts and quality of
service. With a total current investment of $400 Million, Ufone has network coverage
in more than 260 cities and towns and across all major highways of the country.

Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a
company committed to excellence. Under the new vision of Etisalat and with the
support and collaboration of its employees and vendors, Ufone aspires to be the best
in the market by offering customer focused products and a quality service and sales
network.Ufone is a subsidry of PTCL. It works under PTA and it is a GSM featured
product. Ufone is a leading GSM service provider in Pakistan now days.

26
3.4 PTCL Broadband

It is providing high speed internet browsing. DSL is now in top internet speed. Ptcl
earns large part of income from this service. All other internet provider company
work under the ptcl agreement. PTCL also provide Internet service at different Hour
rates. With this service one can connect to Internet from any PTCL telephone line.

3.5 PTCL Smart TV

PTCL has started a digital interactive television service for the first time in Pakistan
in 2008. By using the IPTV (Internet Protocol TV) Technology. Over 150 live
channels are
available to see with good picture quality.
PTCL brought Pakistan into the list of those few countries that are providing the
interactive TV services to their customer.

3.6 EVO WIRELESS BROADBAND

PTCL EVO is Pakistan‟s fastest 3G wireless broadband internet which offers its
customers, “Superior 3G Internet experience”. EVO wireless is operational in over
250 cities nationwide, and enabling a broadband wireless revolution in Pakistan.

3.7 Evo Wingle

EVO Wingle is backed by PTCL EVDO Rev B network offering blazing fast hyper
speeds of up to 9.3Mbps in over 200 cities across the country & auto switch-over to
3.1 Mbps in more than 250 cities.EVOWingle works well with any USB power
source. So plug in your Wingle into a USB port in your car’s stereo system or
cigarette lighter charger, and get connected to 9.3Mbps speeds on-the-go without the
need of a laptop. Or plug-in the device into any USB power charger to get connected
instantly.

27
3.8 Evo Charji

Being the fastest network available means download speeds four to five times faster
than 3G networks, enabling faster downloads, instantaneous uploads, real time
gaming, extremely fast movie downloads and speeds that literally make you stream
like a dream. From surfing the web to watching movies, from getting social with
friends to sharing pics or playing games; Charji EVO gives you the power to do it all
instantly on the country’s fastest wireless network.

3.9 Competitor of Ptcl

There is no meager competitor of PTCL in landline but with the growth of

telecommunication industry of Pakistan competition increasing specially in mobile
phone sector. In total there are more than 800 million subscribers of mobile phone.
There are 03 big players in mobile phone industry but 3 of them are the competitor of
PTCL:

 Mobilink 

 Telenor 

 Warid Tel 

 Zong 

Mobilink
Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having
more than users base which is the 36% of total cellular industry of Pakistan. Mobilink
is basically competing Ufone which is subsidiaries of PTCL.

Telenor
Telenor is another cell phone company it have subscribers which is 20 % of total
mobile industry.

28
Warid Tel
Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more than
15 million subscribers which is 17% of Pakistan mobile industry.

Zongchina Mobile Company

Zong is also providing cell phone facilities in Pakistan. 26.7 million Subscriber
of zong/china mobile company

3.10 DIGITAL PHONE FACILITIES

The digital telephone facilities are available in all the digital exchange of Pakistan.
There are following digital telephone facilities with any package of seven facilities
with very normal price excluding the secret coding and detailed printed bill (which
are without any cost)., ,
Don’t Disturb
Caller-ID
Call Forwarding
Wake Up Call
Call waiting
Call Transfer
Call Transfer on Busy
Call Transfer on no Reply
Conference Call
Hot Line.
Abbreviated dialing.
Call Barring.
Other features of fixed line are
Phone n Net Phone n Net:
Digital phone connects from any PTCL landline number. Its a dialup service.
It is charged on per minute basis, the charges are billed into normal telephone bill.

Local call offers (new)

29
 New facility for the user of digital phone (land line) is free of cost local call offer.

3.11TOLL FREE SERVICE (0800)

This service is available to corporate customers and Call Centers for their
customers’ convenience.

3.12 UNIVERSAL ACCESS NUMBER (UAN)

Universal Access Number (UAN) provides better quality of service and

positive effects on the customers’ businesses, as well as, user convenience. This
trend continued during the past year and the total number of subscribers of the
service reached 1932.

3.13 UNIVERSAL INTERNET NUMBER (UIN)

131 numbering scheme for Internet Service Providers, represents exclusive code
assigned to each ISP. Functioning just like UAN-0800 toll-free service, UIN involves
allocation of numbers to individual ISPs who are licensed by PTA.This service
functions under a single-metering billing system with the promise of rich dividends
in terms of customer care. The benefit of the service of course, goes to the end-users,
who happen to be any ISP customers. Once subscribed, the service means your
customers pay for a single call irrespective of its duration.

3.14 Premium services 0900

A service that enables a telephone user to access a computer set-up established by a

service provider for obtaining information of sorts including recorded
entertainment programs at tariffs depending upon the type of information obtained.

According to needs of customer’s business PTCL offers Standard Service and

Advanced Service for accessing the service providers with features that are helpful to
the customers in customizing their service according to their needs.

30
3.15 BILL PAYMENT FACILITIES

PTCL is in the process of offering convenient bill payment solutions to its customers.
Steps taken in this direction so far include:

Phone bill cards (new)

Electronic bill payment facility (new)
PTCL-Pakistan post office (ppo)
Corporate customer centers

VPN SERVICE
VPN service provides a logical private network for a company by using the PSTN
resources. The service allows a private enterprise to have a private network using
public network resources, without requiring the installation of dedicated network
resources.

CUSTOMER SERVICE CENTRE

The customer service centers have been designed to serve as a “one window
operation” for the general public so that they can have their queries answered and
complaints redressed immediately. The Customer care centers are established in
major cities of Pakistan, Islamabad, Lahore, Karachi etc... These centres are fully
equipped to provide all telecommunication related information and services to its
customers. These centres are connected with their respective regional headquarters
and their computer and data network. The customer services centre are providing the
following services.
NATIONAL & INTERNATIONAL TELEX & FAX SERVICE
INLAND & OVERSEAS TELEPHONE SERVICES
Information related to Telephone, Telex & Fax Services
Correction of Bills
Issuance of Duplicate Bill

31
 Payments
Restoration
Selling of Directory

3.16 RECTIFICATION OF FAULTS

Alternative to 18 for various technical faults. The subscribers can consult these
centres to get their faults rectified.

OTHER SERVICES
Broadband Pakistan (DSL)
Frequently Ask Questions
Pakistan Package Payphone
Vfone
UIN (Universal Internet Number)

Infrastructure and operational base for services like Fee-phone, Home Country
Direct (HCD) and Televoting is complete and these services will be
operational very soon.

I. SERVICE IMPROVEMENT PTCL has further improved its quality of

service by 100% digitalization of its network. There have been a reduced
number of complaints regarding dropped calls, cross talk, and wrong dialing.

NETWORK GROWTH
During the year 2003-2004 there has been a 7% increase in installed capacity and a
12% increase in working connections, also during the year, 106 new NWD stations
were added and the optical fiber network increased from 6,879 km to 7,959 km. the
overall fixed line teledensity increased from 2.8% to 3.0%.

3.17 NATIONAL TELECOMMUNICATION

32
More than 4000 International Circuits were added in the International Gateway
exchanges after bilateral agreements were signed with the existing and new
international carriers. Two new carriers, Primus and IDT, from USA signed
International Service Agreements during the year.
International traffic exceeded the set target during the year; incoming traffic grew
by 30.3% and outgoing by 32.8%. The aggregate growth for the year was 30.5%.

ORGANIZATIONAL ELEMENTS
There are at least three basic concepts associated with formal organizational
structure. They are: Division of labor, Departmentation, And Span of control.
I will try to explain the organizational structure of PTCL with supervene to the above
there concepts and deviously it will comprise of much more.

on of Labor AND PTCL Organizational structure:

Division of labor is a synonymous term for specialization which simply means:
“To know more and more about less and less”
This is specialization or division of labor which give birth to departmentation which
again give birth to span of control. PTCL’s organizational chart is a full picture of the
division of labor. As we can see that the whole organization is “departmentalized”
into six major activities. These are:
 Administration 

 Finance 

 Technical 

 Operations 

 Human Resources (H) and 

 Marketing 


3.18 Department of PTCL

3.18.1 Human Resources Department

All-out efforts are being made for development of a competitive workforce
through rigorous training and with programs to improve the retention of these
employees. To deal with the situation PTCL has transformed its HR culture. More

33
emphasis is being given to the formulation of clear policies in the areas of training,
recruitment, transfers/postings, compensation etc
The ongoing salient HR activities
are: Completion new service rules
Development of new of HR Information Systems
Formation of job descriptions
Rightsizing
Compensation management
Performance appraisal system
Performance standards
Training and Development
Organizational Development

3.18.2 Management Information System (MIS)

The management information system of PTCL was developed in 1994 with a
view to provide timely information to the executives of the Company and help
upgrade this information well in time without the risk of errors and misplacement.
The MIS department is not full information system but at the time it is only project
MIS. This department is responsible for maintaining the data base of the all the
projects under construction and installation. The development wing of the Company
prepares the annual development programs (ADP). The feasibility reports for the
projects or PC-1 is prepared and presented before the top management for approval.
The annual development program (ADP) is provided to the MIS department for
maintaining the data base. The project director is responsible for feeding the time to
time completion report of the project in the network. Currently 300 officers are
provided the work station and are directly connected with the network of MIS. At the
head quarters the network terminals are available in all the offices and

these offices can easily be connected to the network. PTCL has both types of network
i.e.; Local Area Network (LAN) and Wide Area Network (WAN) available for data
base management.

3.18.3 Marketing Division

PTCL realize its position as dominant market player and hence successfully
played its role in the year 2005-2006 with an aggressive approach towards
34
communication strategy and pricing of product and services. The marketing
department adopts a proactive role in introducing marketing technique for retaining
current customers and attractive new ones.
Tariff Rationalization

Product Launches

Surveys

Public relation

3.18.4 Information Technology Department

PTCL continues to participate actively in the activities of various Regional and
International Organizations like International Telecommunication Union (ITU) Asia
Pacific Telecommunity (APT), Asia Pacific Satellite Communication Council
(APSCC), ECO and SAARC. Study groups meetings, conference, workshops and
seminars of all of these organizations are regularly attended by PTCL representatives,
to stay abreast of global developments in the telecom industry.
rd
In December 2003, SAARC’s 3 Meeting of technical Committee on Communication
and Transportation was held in Islamabad. PTCL was an active participate in the
meeting.

3.18.5 Finance Division

Regardless of the type, finance is one of the very basic and most important activities of
any business. The finance department plays the most critical role in determining the long-
term objectives and evaluating the feasibility of the business. As one of the four basic
functional heads of the Company the Member Finance generally reports directly to the
Chairman. The financial activities of PTCL have been split up into three major branches
Finance, Accounts and Project Finance with a separate head of each.
Finance Wing
On the basis of different functions performed by PTCL finance department, the
division is divided into three sub departments
35
 Revenue department.
Accounts department.
Finance department
Evp (Finance) heads this department. The responsibilities of the General Manager
Finance usually fall in the areas of financial management, preparation of annual
budgets, determining the revenue targets for the year, investor and banker relations
and controlling the Directors Revenue in all the regions.
Revenue Department
The Revenue Department is responsible for setting a target of revenue being achieved
during the year, making action to achieve the desired target and collecting of revenue
earned.
This branch is also concerned with the issue that may affect the revenue in one or the
other way.
Domestic Revenue
International Revenue
Corporate Revenue
Domestic Revenue:
The first source of domestic revenue is domestic billing that includes line rent and
local call charges etc. secondly domestic revenue is earned through renting and
leasing of exchanges.
International Revenue:
There are two International Gateway Exchange (I.G.E) of PTCL, one in Rawalpindi
and other in Karachi. An agreement, total Accounting Rate countries and currency
used for this purpose is special Drawing Rights (S.D.R). International revenue is
collected in NASTRO account of New York (USA) from all over the world.
Trend of International Revenue:-
Five years back, international revenue was one third of total revenue of PTCL. With
the passage of time it is decreasing and this decrease is alarmic situation for PTCL's
management.
An analysis is conducted to overcome the problem. In this analysis first reason for
decreasing trend of international revenue are found. In the second stop suggestions are
given to resolve the problem.
Reasons for Decreasing Trend of International Revenue:

36
International call rates (TAR) are decreasing.
International traffic is increasing.
Use of internet
Use of SMS
How to over come the problem?
it is analyzed that operator Assisted callas have been increased @ 35 % and @ 10% in
Islamabad and Karachi respectively during last three years. The increase outward
calls are the effect of reduction ids calling rate (tariff). However the increase in calls
(tariff) is not sufficient to cover the decrease in corresponding revenue. Resultantly,
decline @ 30% is observed in the revenue lost for five years.
Based on existing policy, the incentive cost has been increased from Rs. 3.5 Million
in the financial year 2006-2007.
Keeping in view the above observation, it is proposed that the incentive policy may be
modified to address the stimulant force of all variables that cause effect in calls, tariff
and Revenue.
The incentive benchmark level may be enhanced from present 60 calls to 80 calls.
The incentive rate may be reduced from Rs. 31 calls to Rs. 21 calls.
This would compensate the effect of increased traffic and increased cost for
incentives respectively.
Corporate Revenue:
Other than domestic and international revenue, PTCL is also earning corporate
revenue through:
1. PTML-Pakistan Telecom Mobile Limited (Ufone).
2. VAS-PTCL calling cards etc.
3. CTI-Telephone industries of Pakistan
4. WLL-PTCL Pakistan
5. Financial Investments are contributing a major role towards corporate
revenue.
Accounts Department:
The accounts department is responsible for all accounting, record of keeping,
publication of accounts, audit, employee’s compensation, inventories recording, Fixed
Assets accounting, complete accounting system and internal control, pensions and
direct taxation.

37
Functions and Duties of Accounts Department:-
 Accounting includes accounting system and Procedure. 

 Ongoing integration of the entire system. 

 Preparation of financial records and accounts. 

 Preparation and publication of annual financial statement. 

 Preparation and disbursement of salaries. 

 Management of pension, insurance and benevolent scheme. 

 Management and control of PTCL store accounts. 

 Implementation of sound internal checks and control on expenditures. 

 Finalization of statutory audit. 

 Compliance with the direct tax requirement. 

 Preparation of management accounts. 

 Co-ordination with fiscal authority on financial matters. 

 Information incompliance with the legislative of government requirements. 

 Appraisal and participation in approval of procurement proposals. 

Finance Department
Finance Department is responsible for the budgeting, planning and transaction
relating to income and revenue, expenses, pricing control funds and treasury measure
and direct taxation.

Function and Duties of Finance Department:-

 Preparation of operational, budgets and annual development program (ADP) 

 Disbursement of funds against budget for revenue expenses. 

 Monthly analysis of variances with budgets. 

 Control of financial transitions in billing. 

 Monitoring and management of domestic and international revenue collection. 

 Computerization of billing for all services. 

 Management accounting system on control on revenue and expenditure. 

 Maintenance and operation of bank accounts. 

 Funds based management. 

 Cost analysis of pricing of various tariffs and rentals through competent 

38
 authority.
 The settlement on international telecommunication accounts. 

 Settlement of total accounting rates. 

 Complains with indirect tax and other levies. 

 Preparation of management of accounts. 

 Co-ordination with Government Authorities on financial matters and related
issues 

FINANCE WING

Finance Coordination Business Zones

Financial Systems & Financial Planning Accounts

Development (EVP) and Treasury Services (EVP)

Financial Budgetary Revenue

Policies and Control GM Accounts GM

Costing and Treasury & Assets

Regulatory Affairs
Purchase Management
GM

Source: Self made

Although specialization is criticized very much but I must say that for a large
organization like PTCL, specialization is a pre-requisite. PTCL’s Organizational chart
shows a vertical expansion in the positions of the organization.
And that’s the reason that in PTCL job requirements and manager (in case of PTCL
and SEVP) specifications are developed and matched to assign personnel. Every
39
manager or SEVP in case of PTCL has his or her own job requirements for which he
or she is best fit. Take for example the SEVP Administration department, who is one
of the assisting sub heads to the company, secretary, GM internal Audit and General
Manager Solutions, who again assist the president.
The administration SEVP in PTCL is obliged to take care of so many things, for
example:
He / she have to handle all the issues related to human resource and planning.
Has to take care of co-ordination among different departments, Will handle issues
related to transport and telecommunication, And so many other activities like public
relations, HR telecommunications etc.
For all these activities, he / she are then supported by eleven more managers who
again are the experts in their own fields.
Departmentation
As discussed earlier that division of labor gives birth to departmentation.
“Departmentation is the efficient and effective grouping of jobs into meaningful work
units to co-ordinate numerous jobs. All for the expeditious accomplishment of the
organizations objectives”

3.18.6 PTCL’s Basic Organizational Units

As discussed earlier PTCL’s organizational chart shows that it has six main
supporting sub-heads or working unit or departments. Now the scope of these main
fundamental organizational units and the complexity of the enterprise give rise of
additional organizational units. These types result mainly from such things as the
nature and amount of work to be done, the degree of specialization or division of labor
practiced, and the people and the workplace available for the work.
To illustrate, for example in PTCL’s organizational chart, taking the supporting head
of finance into consideration, the scope of the work may be so broad that it is believed
advantageous to divided the work into accounts, finance and revenue and for each
places a subordinate (The EVP’s) in charge. A revenue EVP will be appointed to
manage the revenue work in the field and so on. These are three additional units
appear in the organization structure at the level immediately below that of the
fundamental unit of finance. And as we move down the chart we see that this vertical
expansion has taken place of each fundamental level from 1 to 6 additional
40
subordinate levels. For example the services and the work of the organization
continue to grow and conditions become such that further units are deemed necessary
for efficient operation. Accordingly from the accounts unit is SPVN off the two
subordinate units of (i) simple book account keeping and (ii) computerized accounts.
Similarly from other two units, additional one subordinate unit is SPUN off.

3.18.7 Differentiated Departmentation

But it is not enough to know that the president is supported by three persons with six
supporting heads (SEVP’s) and they again are supported by their subordinates
(EVP’s) and they have their own subordinates. It’s not the end of the story rather it’s a
mature beginning of the story.
The departmentation we discussed is differentiated because it hasn’t got one single
base. Rater:
Under the finance unit, the departmentation is done on the basis of activity or activity
based departmentation and similar in the case with administration unit.
Under the technical unit, departmentation is done on the basis of subsidiaries and
processes.
Under the operations head, the departmentation has taken place, on the basis of
territories or territorial departmentation.
Under marketing head the departmentation has taken place on the basis of customer
service and activities. And same is the case with HR unit.
Now this expansion gives birth to yet another concept called span of control.
Span of Control
Span of control refers to the number of immediate subordinates who report to a
manager wide spans or a manager who has a relatively large number of immediate
subordinates, usually results in few organization levels and a flattening out of the
structure. But in case of PTCL, it’s and complexity of the work does play their roles.

Centralization and Decentralization

As a result of vertical expansion in stead of horizontal expansion, we see that in PTCL
the decentralized management operates. Although centralization is there, but it is only
up to the fundamental level. Centralization tends to concentrate decision making at
41
the top of the organization whereas decentralization disperses decision-making and
authority throughout and further down the organization hierarchy and that’s why
PTCL follows a decentralized pattern because it gives, the employ people of the
organization an impression, that the organization belongs to them and they belong to
it.

3.19 levels o f Organizational Chart

Every large organization structure contains three levels of management and so is the
case with PTCL’s organization chart. It also includes those levels namely:
Strategic Level, Business Level and finally Functional Level
These three levels of management again serve three basic and important activities.
These are:
 The strategy formulation and decision-making 

 Implementation of the strategies and decisions. 

 Execution of them. 
The PTCL’s strategic level, which consists of the president and his ultimate four
subordinates on the top, perform the function of strategic formulation and decision-
making with the assistance of other units.
PTCL’s business level consists of the six supporting expert’s heads and their 12
subordinates. They perform the implementation function.
Whereas the functional level, consisting of subordinate units and employees, executes
the strategies and decisions taken by the strategies level and assigned and
communicated to them by the business level.
Since I was attached to the different section of Finance under EVP (Finance). So my
major area of learning in PTCL’s Finance Department was
as:…………………………………………………………………….

Fixed Asset Management

The Asset Management Fiscal Year can be kept open for two years simultaneously. It
means that the adjustment can be done in one fiscal year and the effects can be carried
forward to next fiscal year. Very careful assessment should be needed to decide the
42
period closure because once the period has been closed it can never be opened for any
prior adjustments. The Manager Fixed Assets in order to post new Fiscal year
Postings intimate the SM Fixed Assets and CWIP Control to open new fiscal year by
performing the Fiscal Year change function in SAP. After changing the fiscal year,
new fiscal year postings will be started, whereas it has no effect on previous fiscal
year and will remain be open till the finalization of Audit adjustments.

 The Asset department will ensure that all the Asset acquisitions
have been updated in Fixed Asset Register and corresponding
Depreciation has been correctly simulated after posting any
unplanned Depreciation (if needed). Asset History Sheet should
carefully be reviewed to reconcile the Book Value matched with
the Financial Records after due incorporation of Audit adjustments. 

 The SM Fixed Assets and CWIP Control on confirmation from the 
Manager Fixed Assets will close the Fiscal period of Asset
Management in SAP.
Prior to generating all financial reports for a particular month, some activities
must be performed to close the posting period.
Month-end activities cover:
1. General period end activities

 Maintain postings periods / fiscal year for account type ‘+” i.e. all account
types 

 Maintain postings periods / fiscal year for account type ‘M’ i.e. materials 

 Maintain exchange rate tables (daily basis) 

2. Asset Accounting (AA) period end closing activities
 Settlement of Asset under Construction (AUC) to Fixed Assets 

 Depreciation posting run 

 Maintain postings periods / fiscal year for account type ‘A’ i.e. assets. 

3. Besides the above month-end activities, below are some additional
processes for the year-end activities, which must be carried out in the
system:
 Carry forward AP balance 

 Carry forward AR balance 

 Carry forward GL balance 
43
  Calculate unrealized gain/loss on foreign currency 

 Audit Adjustment – posting to period 13-16 

 Fiscal year change for Asset Accounting 

 Fiscal year close for Asset Accounting 
Fixed Assets Reports
The standard comprehensive Reports in addition to the Fixed Asset Information
System are:
AW01N – Asset Explorer
Fixed Asset Register, list the transactional detail of Assets for:
Planned Values
Posted Values
Depreciation Forecast
Depreciation Parameters
AR 02 – Asset History Report
Fixed Assets History Report showing:
Asset accumulated balances with opening balance reconciliation
Asset Acquisitions
Asset Retirements
Asset Transfers
Posted Depreciation
Unplanned (Manual) Depreciation
Accumulated Depreciation
Depreciation Simulation
Evaluation Group level
Depreciation
Every asset transaction in the Asset Accounting (FI-AA) component immediately
causes a change to the forecasted depreciation. However, it does not immediately
cause an update of the depreciation and value adjustment accounts for the balance
sheet and profit and loss statements. The planned depreciation is posted to the general
ledger when the periodic depreciation posting run is executed. This posting run uses a
batch input session to post the planned depreciation for each posting level for each
individual asset Monthly depreciation program will be executed in SAP to post
depreciation.
44
 For intangible assets, amortization will be executed in the same manner
as that of depreciation for the specified period of time.
Earlier to the periodic Depreciation run, Asset register will be updated
with un posted acquisition during the period for which depreciation run
is to be executed
Unplanned (Manual) Depreciation will be posted to reconcile the
depreciation difference between the system calculated depreciation and
manual records
Execute a repeat Depreciation run against any last period postings

Test execution of Depreciation run in order to simulate and verify the

depreciation values posted by the system
If there are no errors, execute the Depreciation run with uncheck the test
run mark
Depreciation will be posted through batch input session as a lump sum amount.

3.20 My Assignments:

Assets Coding:
Coding, one of the most important activity at NTC that I performed in the office of
Director Data Administrator.
I managed and updated codes of accounts for data reporting in Capital
Expenditures (CAPEX) and Operational Expenditures (OPEX), for various assets
of PTCL. Its main advantage is that, through this we can not make separate
summary for each asset. Now we can easily dig out the exit and accurate estimates
of the particular asset.
Correct Coding tends to compile correct results. Some additions in assets record,
code were also reformed and added in Databases. I managed the restructuring of
accounts titles Zone wise and under Divisions to make it error free.

MIS Management
I also worked in Oracle-I environment designed as MIS for DDO entries.
To correct the zonal entries receive, record and then forwarding to the Head Office
Lahore. I updated various vouchers and we worked and discussed in removal of
Errors.
45
Server Room Assignments
My exciting assignment was to work at server room controlling all records over
the country.
I installed new server Softwares, learned to work in server
windows, Managed system access and Security measures.
Complaint Operator
Since I worked in Server room, I was lucky to have an experience of receiving
complaints, memos and sometimes appreciation calls by DDO’s from the
whole country.
I recorded and forwarded the complaints and we worked to solve out problem
to satisfy the complaint.
Maintaining Of File And Records
Every day there has been preliminary file work from initial nothing till the
final presentation of the whole scenario. Each task has to be filed.
Writing Memos,E-Mails,Printing
I wrote many applications, memos, emails for various purpose defined by my
supervisors. I forwarded mails, received and managed emails and also made important
print outs for official use.
Financial Statements Analysis
I was given personal assignments by supervisor to analyze the financial reports as per
stated in Annual reports, as well checking of variances in monthly expenditures as
per allocated budget.
Assigment Of Budget Analysis
I was given assignment to study previous Budget of OPEX and update entries as per
new parameters for input forms.

46
 Chapter No-4
Financial Analysis
4.1 Introduction

Financial analysis is the assessment of profitability stability viability it explains the

organization to have better foresee that how the organization is performing in the
present situation the financial data has been consider as fundamental tool conclusions
an only be drawn having better financial statement analysis it is necessary for the
business to have better proportion of balance among the different items there are
certain things that are dangerous but could only be sort out through proper analysis
evaluation on strength and weakness are possible through it

 Different stake holders have different interests like 


 Creditors in liquidity 

 Investor for future Earning 

 Government for tax purpose 
Budgeting, Planning etc also require this information

4.2 Balance Sheet

Balance Sheet

2017 2016

RS 000 RS 000

Equity and Liabilities

Equity

Share Capital and reserves

Share Capital 51,000,000 51,000,000

Revenue reserves

47
Insurance reserve 2621288 2416078

General reserve 27497072 30500000

Unappropriated profit 1894739 2302282

32013099 35218360

83013099 86218360

Liabilities

Non-Current liabilities

Long term security Deposits 553049 552122

Deferred income tax 4737260 5754847

Employees retirement benefits 24068008 32111859

Deferred Government grants 8594920 8926403

37953237 47345231

Current Liabilities

Trade & Other Payables 59142912 46814183

Total Equity & Liabilities 180109248 180377774

Assets

Non-Current Assets

Fixed Assets

Propert, Plant & Equipment 94779483 94912046

Intangable Assets 2332789 2539060

48
 97112272 97451106

Long Term investments 7977300 7977300

Long term loans & Advances 2152757 2261126

Investment in Finance Lease 38513 96113

107280842 107785645

Current Assets

Stores, Spares and loose tools 2742794 2940425

Trade Debts 14227974 14304039

Loans & Advances 676556 1593099

Investment in finance Lease 53030 52255

Accured interest 231902 128174

Recoverable from tax Authoroties 14550698 18179032

Recieveable from Government of Pakistan 2164072 2164072

Prepayments and other recievables 8279236 4982082

Short term investments 24000000 26038803

Cash & bank balances 5902144 2210148

72828406 72592129

Total Assets 180109248 180,377,774

49
4.3 Income statement

For the Year Ended 2017

2017 2016

RS 000 RS 000

Profit for the year 6834534 8,759,595

Other comprehensive loss for the year

Items that will not be reclassified to profit & loss

Remeasurement loss on employees retirement benefits 232181 2,361,452

Tax Effect of remeasurement loss on employees 71976 755,665

retirement benifits

160205 1,605,787

Items that might be reclassified to profit & loss:

Gain on available for sale investments arising during -

this year

Gain on disposal transferred to income for the year - 329,039

Other comprehensive loss for the year – net of tax 160205 1,934,826

Total comprehensive income for the year 6994739 6,824,769

50
4.4 Horizontal Analysis of Balance Sheet

2017 2016 2017%

Vs 2016
RS 000 RS 000

Equity and Liabilities

Equity

Share Capital and reserves

Share Capital 51,000,000 51,000,000 0%

Revenue reserves

Insurance reserve 2,621288 2416078 8.4%

General reserve 27497072 30,500,000 -9.8%

Unappropriated profit 1894739 2302282 -17%

83013099 86218360 -3.7%

Liabilities

Non-Current liabilities

Long term security Deposits 553049 552,122 0.16%

Deferred income tax 4737260 5,754,847 -17.6%

Employees retirement benefits 24068008 32,111,859 -25%

Deferred Government grants 8594920 8,926,403 -3.7%

37953237 47,345,231 -19.8%

Current Liabilities

51
Trade & Other Payables 59142912 46,814183 26%

Total Equity & Liabilities 180109248 180,3777,74 -0.14%

Assets

Non-Current Assets

Fixed Assets

Propert, Plant & Equipment 94779483 94912046 -0.13%

Intangable Assets 2332789 2539060 -8.12%

97112272 97451106 -0.3%

Long Term investments 7977300 7977300 0%

Long term loans & Advances 2152757 2261126 -4.7%

Investment in Finance Lease 38513 96113 -59%

107280842 107785645 -0.4%

Current Assets

Stores, Spares and loose tools 2742794 2940425 -6.7%

Trade Debts 14227974 14304039 -0.53%

Loans & Advances 676556 1593099 -57%

Investment in finance Lease 53030 52255 1.4%

Accured interest 231902 128174 80.9%

Recoverable from tax Authoroties 14550698 18179032 19.9%

Recieveable from Government of 2164072 2164072 0%

Pakistan

52
Prepayments and other recievables 8279236 4982082 66%

Short term investments 24000000 26038803 -7.8%

Cash & bank balances 5902144 2210148 167%

72828406 72592129 -3%

Total Assets 180109248 180,377,774 -0.14%

4.4.1 Interpretation

A common problem with horizontal analysis is that the aggregation of information in

the financial statements may have changed over time, due to ongoing changes in the
chart of accounts, so that revenues, expenses, assets, or liabilities may shift between
different accounts and therefore appear to cause variances when comparing account
balances from one period to the next.

When conducting a horizontal analysis, it is useful to conduct the analysis for all of
the financial statements at the same time, so that you can see the complete impact of
operational results on a company's financial condition over the review period. For
example, in the two examples below, the income statement analysis shows a company
having an excellent second year, but the related balance sheet analysis shows that it is
having trouble funding growth, given the decline in cash, increase in accounts
payable, and increase in debt.

The result of horizontal analysis of PTCL’s Balance sheet are described below

The assets of the PTCL have been growing very fast since its inception. This growth is the
result of the massive expansion policy the management has been following ever since the
inception of PTCL. The Total Assets decreased by -0.14 %.

Stores, Spares and loose tools-6.7 while Trade Debts decreased by-0.53, Loans &
Advances decreased by-57, Investment in finance Lease increased by 1.4, Accured
interest increased by 80.9 which is a good sign for PTCL, Recoverable from tax
53
Authoroties decreased -1, Recieveable from Government of Pakistan is equal for both
years i.e 0%

One of the important ingredients of any Organization growth is increase in most of

current assets that is a good sign as it increases their liquidity.

As regards the liability section of the balance sheet chief liability is its deposits it
generates from its customer..As Shown in the Annual reports of previous years.

PTCL Share Capital profits is same in both 2016-2017 is 0%

54
4.5 Vertical Analysis of Balance Sheet

2017 2017% 2016 2016%

RS 000 RS 000

Liabilities

Non-Current liabilities

Long term security Deposits 553049 1.4 552,122 1.1

Deferred income tax 4737260 12.4 5,754,874 12.1

Employees retirement benefits 24068008 63.4 32,111,859 67.8

Deferred Government grants 8594920 22.6 8,926,403 18.8

37953237 100 47345258 100

Assets

Non-Current Assets

Fixed Assets

Propert, Plant & Equipment 94779483 97.5 94912046 97.4

Intangable Assets 2332789 2.5 2539060 2.6

97112272 100 97451106 100

Current Assets

Stores, Spares and loose tools 2742794 3.7 2940425 4.0

Trade Debts 14227974 19.5 14304039 19.7

Loans & Advances 676556 0.9 1593099 2.1

55
Investment in finance Lease 53030 0.7 52255 0.08

Accured interest 231902 0.3 128174 0.1

Recoverable from tax 14550698 19.9 18179032 25.0

Authoroties

Recieveable from Government 2164072 2.9 2164072 2.9

of Pakistan

Prepayments and other 8279236 11.3 4982082 6.8

recievables

Short term investments 24000000 32.9 26038803 35.8

Cash & bank balances 5902144 8.1 2210148 3.0

Total current
Assets 72828406 100% 72592129 100%

4.5.1 Interpretation
A type of financial analysis involving income statements and balance sheets. All
income statement amounts are divided by the amount of net sales so that the income
statement figures will become percentages of net sales. All balance sheet amounts are
divided by total assets so that the balance sheet figures will become percentages of
total assets.After analyzing the Balance Sheet, we can see

Long term security Deposits i.e 552,122 were 1.1 in 2016 while in 2017 are 553049
which is 1.4%

Deferred income tax are 5,754,874 in 2016 which is 12.7 % in 2017 it is 4737260
which is 12.4%

Employees retirement benefits amounting 32,111,859 in 2016 show 67.8 change

while in 2017 it is 24068008 which is 63.7

56
Horizontal Analysis of Income Statement
2017 2016 2017 vs 2016

Profit for the year 6834534 8759595 -21

Remeasurement gain 232181 2361452 -90

Retirement benifits 71976 755665 -90

160205 1605787 -90

Gain on disposal - 329039 ---

Other comprehensive income 160205 1934826 -91

Total comprehensive income 6994739 6824679 2.4

Interpretation
The result of horizontal analysis of PTCL’s income statements described below

Other comprehensive income in 2016 is 1934826 and in 2017 is 160205 therefore it

decreased -91 %.

This analysis shows that the total comprehensive income increased 2.4% than the
previous year.

One of the important ingredients of any Organization growth is increase in most of

current assets that is a good sign as it increases their liquidity.

Analysts use the income statement for data to calculate financial ratios such as return
on equity (ROE), return on assets (ROA), gross profit, operating profit, earnings
before interest and taxes (EBIT), and earnings before interest taxes and amortization
(EBITDA). The income statement is often presented in a common-sized format,
which provides each line item on the income statement as a percent of sales. In this
way, analysts can easily see which expenses make up the largest portion of sales.
57
Analysts also use the income statement to compare year-over-year (YOY) and
quarter-over-quarter (QOQ) performance. The income statement typically provides
two to three years of historical data for comparison.

The income statement is divided into two parts: operating and non-operating. The
operating portion of the income statement discloses information about revenues and
expenses that are a direct result of regular business operations. For example, if a
business creates sports equipment, it should make money through the sale and/or
production of sports equipment. The non-operating section discloses revenue and
expense information about activities that are not directly tied to a company's regular
operations. Continuing with the same example, if the sports company sells real estate
and investment securities, the gain from the sale is listed in the non-operating items
section.

58
Vertical Analysis of Income Statement

2017 2017% 2016 2016%

Profit for the year 6834534 80 8759595 70

Items reclassified 160205 10 1605787 15

Gain on disposal - - 329039 5

Other comprehensive income 160205 10 1934826 5

Total comprehensive income 6994739 100 6824679 100

Interpretation
Vertical analysis is a method of financial statement analysis in which each entry for
each of the three major categories of accounts, or assets, liabilities and equities, in a
balance sheet is represented as a proportion of the total account. Vertical analysis is
also used across other financial statements as a percentage measure.

The income statement is divided into two parts: operating and non-operating. The
operating portion of the income statement discloses information about revenues and
expenses that are a direct result of regular business operations. For example, if a
business creates sports equipment, it should make money through the sale and/or
production of sports equipment. The non-operating section discloses revenue and
expense information about activities that are not directly tied to a company's regular
operations. Continuing with the same example, if the sports company sells real estate
and investment securities, the gain from the sale is listed in the non-operating items
section.

An income statement is a financial statement that reports a company's financial

performance over a specific accounting period. Financial performance is assessed by
giving a summary of how the business incurs its revenues and expenses through both

59
operating and non-operating activities. It also shows the net profit or loss incurred
over a specific accounting period.

After analyzing the Income statement, we can see

That the profit for 2016 is 70% while in 2017 it increased to 80% and the other
comprehensive income in 2016 is 5% in 2017 it increased to 10 %

60
4.6 Ratio Analysis
Ratio simply means one number expressed in terms of another. A ratio is a statistical
yardstick by means of which relationship between two or various figures can be
compared or measured. It is defined as a systematic use of ration to interpret the
financial statements so that the strengths and weaknesses of a firm, as well as
historical performance and current financial condition, can be determined.

4.6.1 Liquidity
Ratio Current ratio
The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay
off its short-term liabilities with its current assets. The current ratio is an important
measure of liquidity because short-term liabilities are due within the next year.
This means that a company has a limited amount of time in order to raise the funds to
pay for these liabilities. Current assets like cash, cash equivalents, and marketable
securities can easily be converted into cash in the short term. This means that
companies with larger amounts of current assets will more easily be able to pay off
current liabilities when they become due without having to sell off long-term, revenue
generating assets.

Formula

The current ratio is calculated by dividing current assets by current liabilities. This
ratio is stated in numeric format rather than in decimal format. Here is the calculation:

Current Ratio
Current Assets 2016= Stores, spares 2940425+Trade debt14304039+loans and
advances1593099+investment52255+accrued interest12817 4+recoveries18179032 +
Receiveable from Govt.2164072+Prepayment4982082+short term investments
26038803 + cash & bank Balences2210148= 72592129
Current Libalities 2016= trade and other payables 46814183

Current Assets 2017= Stores, spares 2742794+Trade debt14227974+loans and

advances676556+investment53030+accrued interest231902+recoveries14550698 +

61
Receiveable from Govt.2164072+Prepayment 8279236+short term investments
24000000 + cash & bank Balences5902144= 72828406

Current Libalities 2017= trade and other payables 59142912

CURRENT ASSET/CURRENT RESULT

YEARS LIABILITIES

2016 72592129/46814183 0.15%

2017 72828406/59142912 1.2

Interpretation
Current ratio showed a huge increase in the year 2017 to 1.2% from the last year’s
0.15% which is a good sign for the organization

Net Working Capital

Net working capital is a liquidity calculation that measures a company’s ability to pay
off its current liabilities with current assets. This measurement is important to
management, vendors, and general creditors because it shows the firm’s short-term
liquidity as well as management’s ability to use its assets efficiently.

Much like the working capital ratio, the net working capital formula focuses on
current liabilities like trade debts, accounts payable, and vendor notes that must be
repaid in the current year. It only makes sense the vendors and creditors would like to
see how much current assets, assets that are expected to be converted into cash in the
current year, are available to pay for the liabilities that will become due in the coming
12 months.
If a company can’t meet its current obligations with current assets, it will be forced to
use it’s long-term assets, or income producing assets, to pay off its current
obligations. This can lead decreased operations, sales, and may even be an indicator
of more severe organizational and financial problems.

62
Formula

The net working capital formula is calculated by subtracting the current liabilities
from the current assets. Here is what the basic equation looks like.

YEARS CURRENT ASSETS –CURRENT RESULT

LIABILITIES
2016 72592129-46814183 Rs.25777946
2017 72828406-59142912 Rs. 13685496

Interpretation

The calculation of this ratio show that net working capital in 2016 was Rs. 25777946
while in 2017 it is Rs. 13685496.

Debt to Equity Ratio

The debt to equity ratio is a financial, liquidity ratio that compares a company's total
debt to total equity. The debt to equity ratio shows the percentage of company
financing that comes from creditors and investors. A higher debt to equity ratio
indicates that more creditor financing (bank loans) is used than investor financing
(shareholders).

Formula

The debt to equity ratio is calculated by dividing total liabilities by total equity. The
debt to equity ratio is considered a balance sheet ratio because all of the elements are
reported on the balance sheet.

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 YEARS TOTAL LIABITIES/TOTAL RESULT
EQUITY
2016 94159414/86218360 1.09%
2017 97096149/83013099 1.16%

Interpretation

Debt to equity ratio for the year 2016 is 1.09% while it increased in the current year
2017 to 1.16, due to constant increase in the liabilities

4.6.2Solvency Ratio

Debt Ratio

Debt ratio is a solvency ratio that measures a firm's total liabilities as a percentage of
its total assets. In a sense, the debt ratio shows a company's ability to pay off its
liabilities with its assets. In other words, this shows how many assets the company
must sell in order to pay off all of its liabilities.
This ratio measures the financial leverage of a company. Companies with higher
levels of liabilities compared with assets are considered highly leveraged and more
risky for lenders.
This helps investors and creditors analysis the overall debt burden on the company as
well as the firm's ability to pay off the debt in future, uncertain economic times.

Formula

The debt ratio is calculated by dividing total liabilities by total assets. Both of these
numbers can easily be found the balance sheet. Here is the calculation:

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 YEARS TOTAL LIABILITIES/ TOTAL RESULT
ASSETS

2016 97096149/180109248 0.53%

2017 94159414/180377774 0.52%

Interpretation

Debt ratio slightly decreased in 2017 as compare to 2016 it was 0.53% in 2016 while
in 2017 it decline to 0.52%

Equity Ratio

The equity ratio is an investment leverage or solvency ratio that measures the
amount of assets that are financed by owners' investments by comparing the total
equity in the company to the total assets.
The equity ratio highlights two important financial concepts of a solvent and
sustainable business. The first component shows how much of the total company
assets are owned outright by the investors. In other words, after all of the liabilities
are paid off, the investors will end up with the remaining assets.

The second component inversely shows how leveraged the company is with debt. The
equity ratio measures how much of a firm's assets were financed by investors. In other
words, this is the investors' stake in the company. This is what they are on the hook
for. The inverse of this calculation shows the amount of assets that were financed by
debt. Companies with higher equity ratios show new investors and creditors that
investors believe in the company and are willing to finance it with their investments.

Formula

The equity ratio is calculated by dividing total equity by total assets. Both of these
numbers truly include all of the accounts in that category. In other words, all of the
assets and equity reported on the balance sheet are included in the equity ratio
calculation.

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 YEARS TOTAL EQUITY/TOTAL RESULT
ASSETS
2016 86218360/180377774 0.47%
2017 83013099/180109248 0.46%

Interpretation
Equity ratio for the year 2016 is 0.47% and in 2017 it is 0.46% which means it slightly
decreased than the year 2016 in current year which is a good sign.

4.6.3 Profitability Ratios

Return on Assets Ratio - ROA

The return on assets ratio, often called the return on total assets, is a profitability ratio
that measures the net income produced by total assets during a period by comparing
net income to the average total assets. In other words, the return on assets ratio or
ROA measures how efficiently a company can manage its assets to produce profits
during a period.

Since company assets' sole purpose is to generate revenues and produce profits, this
ratio helps both management and investors see how well the company can convert its
investments in assets into profits. You can look at ROA as a return on investment for
the company since capital assets are often the biggest investment for most companies.
In this case, the company invests money into capital assets and the return is measured
in profits.

In short, this ratio measures how profitable a company's assets are.

Formula

The return on assets ratio formula is calculated by dividing net income by average
total assets.

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 YEARS NET INCOME / AVERAGE RESULT
TOTAL ASSETS
2016 6824769/180243511 0.03%
2017 6994739/180243511 0.03%
Average total assets = Current year assets + previous year Assets / 2

180109248+180377774/2 = 180243511

Interpretation
This ratio for both years 2016-2017 is same i.e 0.03%. which is not a good sign for
the firm it should always increase than the previous year

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 Chapter No-5
SWOT ANALYSIS

5.1 STRENGTHS

 Largest operational network and infrastructure within ICT (Information

& Communication Technologies) segment. 

 An integrated monopoly. 


 Market leadership in Local loop, Wireless local loop (WLL) and
Fixed telephony. 

 PTCL (Ufone) is market challenger in GSM segment. 


 Ufone is performing well though Warid, Telennor, Mobilink and Zong are
tough competitor. PTCL , Ufons profitability increased by 49.2 percent to Rs
977 million in 1H/FY07 as compared to rsRs655 million in the corresponding
period last. 

 Competitors still dpend on PTCL network either directly or indirectly. 

 Experienced Telecom Recourses. 


5.2 Weaknesses

 Not been able to nurture its growth around customer services oriented strategy. 

 Internal organizational and business issues. 

 Monopolistic culture has further added to complexities. 


 Paknet, the internet service provider arm of PTCL customers to incur losses
due to poor management and lack of network optimization. 

 Ptcl-v, the fixed wireless phone service is poor. 

68
  Over employment & low productivity. 

 Slow decision making including external interferences. 

 Corporate culture akin to Government department. 




5.3 OPPORTUNITIES

 Low teledensity of Pakistan. 


 Have vast infrastructure and real estate which can be leveraged further. 

 Global connectivity reliability has been improved. 


 PTCL expanding the long distance and infrastructure side through spreading
out two sea-me-we submarine cables. 

 Partnership with new entrants in deregulated environment. 

 Scope for efficient cost effective operations. 

5.4Threats

 increased competition in long distance counties to exert pressure. 


 VOIP use is increasing despite ambiguous and discriminatory policies. 

 Exposure to market competition. 

 Migration to cellular network. 

 Ability to attract &retain quality professional. 

 Reduction in international settlement rates. 

69
 Chapter No-6
Conclusion & Recommendations

6.1 Conclusion

The company maintains a leading position in Pakistan as an infrastructure provider to

other telecom operators and corporate customers of the country. It has the potential to
be an instrumental agent in Pakistan’s economic growth.

PTCL has laid an Optical Fibre Access Network in the major metropolitan centres of
Pakistan and local loop services have started to be modernized and upgraded from
copper to an optical network. On the Long Distance and International infrastructure
side, the capacity of two SEA-ME-WE submarine cable is being expanded to meet the
increasing demand of International traffic. Pakistan Telecommunication Corporation
(PTC) has established in December 1990, taking over operations and functions from
Pakistan Telephone and Telegraph Department under Pakistan Telecommunication
Corporation Act 1991. This coincided with the Government's competitive policy,
encouraging private sector participation and resulting in award of licenses for cellular,
card-operated payphones, paging and, lately, data communication services.

PTCL is a good Organization in the way that anybody can join it for his/ her long-
termcareer. Overall working environment is comfortable. Management of branch
cares a lot of its employees and considers them as the Asset of PTCL. Behavior of
senior executive of bank is very polite and they are caring about the individual’s
career and their growth. PTCL needs innovative service offerings — currently it
doesn’t even offer bundles or a single bill.
It is said that the best assets of a company go home to their family in the evening. Can
the culture of PTCL be changed to a performance and service-based organization?

According to the latest director’s report from PTCL the “organization is being
revamped”. Only time can tell the impact. However management is very demanding
about the targets but good reward at the achievement of assigned targets is awarded.

70
Employees at PTCL are quite efficient. Its employees have to bring their org
among the list of good. It also shows their loyalty, commitment to organization.
Employees are given the benefits like bonus, gratuity funds, loans, increments, and
medical. All the customers are entertained individually. Same kind of behavior and
attention is given to all the customers. Getting ideas for improvement from customer
side is a new idea and that is working very well in PTCL. All the customers are
asked to fill a suggestion form and the standards of the org are improved through
them. So far my learning is concerned; all the employees at branch were quite
cooperative. They helped me to understand the activities of a org to possible extent.
Their good attitude gave me more confidence to learn more and to ask if I have any
query in my mind. Besides there ever going activities they never get irritant by my
questioning. I had made an honest efferent to present the working & operation of
PTCL in simplest way.

No doubt PTCL is enjoying monopoly but the time is came when competition will
force Company to change its policies to become favorite telecom service provider in
the Market & keep its current place & customer base.
The company maintains a leading position in Pakistan as an infrastructure provider
toothier telecom operators and corporate customers of the country. It has the potential
to be an instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical
Fiber Access Network in the major metropolitan centers of Pakistan and local loop
services have started to be modernized and upgraded from copper to an optical
network On the Long Distance and International infrastructure side, the capacity of
two SEA-MEWE

The image of PTCL being leading Telecom providing is not good in the eyes of
common Customer especially there are lot of complaints about the including the
bogus local calls in the monthly bills of various customers. PTCL also provide the
detail of local calls made from any Land Line Number which would be provided in
Micro level to the customer. Faulty Telephone connection Fault Free within 24 hours
in order to maximize the Revenue, as Revenue of PTCL should sacrifice at the cost of
Faulty Telephone.PTCL should make Customer Care Centers in remote areas.

71
PTCL is a good Organization in the way that anybody can join it for his/ her long-
termcareer. Overall working environment is comfortable. Management of branch
cares a lot of its employees and considers them as the Asset of PTCL. Behavior of
senior executive of bank is very polite and they are caring about the individual’s
career and their growth. PTCL needs innovative service offerings — currently it
doesn’t even offer bundles or a single bill.
It is said that the best assets of a company go home to their family in the evening. Can
the culture of PTCL be changed to a performance and service-based organization?
According to the latest director’s report from PTCL the “organization is being
revamped”. Only time can tell the impact. However management is very demanding
about the targets but good reward at the achievement of assigned targets is awarded.
Employees at PTCL are quite efficient. Its employees have to bring their org among
the list of good. It also shows their loyalty, commitment to organization.
Employees are given the benefits like bonus, gratuity funds, loans, increments, and
medical. All the customers are entertained individually. Same kind of behavior and
attention is given to all the customers. Getting ideas for improvement from customer
side is a new idea and that is working very well in PTCL. All the customers are asked
to fill a suggestion form and the standards of the org are improved through them. So
far my learning is concerned; all the employees at branch were quite cooperative.
They helped me to understand the activities of a org to possible extent. Their good
attitude gave me more confidence to learn more and to ask if I have any query in my
mind. Besides there ever going activities they never get irritant by my questioning. I
had made an honest efferent to present the working & operation of PTCL in simplest
way.

6.2 Recommendations

 
 Should be decreased the over number of employees.



Should bedeveloping the training and development process of every
employee.

72

PTCL management should give concentration  towards the Securities of
 deposit and it should be on maximum level.

 
 The return on deposit should be checked accordingly.
 
 The cash generated from the operation must be utilized accordingly.

 
 Each Region should allocate the funds at its own level.

 
 PTCL should take the services of highly qualified financial analysts.

 
 In every organization; In PTCL this is not going well. So there is an immense



The punching system of Billing through automation attach  with main branch
 he takes so much time to adjust so it should be revived.



PTCL is  not utilizing its surplus profit in long-term investment projects which
 be done.

 
 need to improve this department.





 system in the Finance & Revenue wing should be revived in
The promotion
 true manner

 
 All promotion must be made strictly on merit.



Each Region should maintain Profit & Loss and Balance sheet and the
statement of Cash inflow and outflow.

73

Hundred percent computerization in PTCL would be helpful to save the time
 and money and provision of quick services to its valued customers.



No doubt P.T.C.L having the monopoly in providing the Land-Line Telephone 
 connection in Pakistan and its playing its role magnificently. In current
scenario P.T.C.L has increases its Revenue quite dramatically and probably
that as soon as this organization has become privatized it will flourish its

revenue in better manner.



PTCL should immediately change its  Finance upper level of hierarchy and
 should stream line in the good manner.

PTCL should also encourage the Billing On line system  that each and every
 customer should have to pay his/her bill on line basis..



The image of PTCL being leading Telecom providing is not good in the eyes 
 of common customer especially there are lot of complaints about the including
the bogus local calls in the monthly bills of various customers. PTCL should
also provide the detail of local calls made from any Land Line Number which

would be provided in Micro level to the customer.

74
 References

1. Official Website of PTCL, ptcl.com.pk (Accessed on Jan25th, 2017)

2. Annual reports of PTCL. 2017, 2016

3. Recent business record.

4. Magazine Business Economy

5. Economic Survey of Pakistan
6. Businessrecorder.com
7. Security and Exchange Commission of Pakistan

75