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5.4 Debt to CapitalizationRatio
Debt to capitalization ratio is equal to total long term debts divided by total capitalization.
Total capitalization= Total long term debts + Shareholders Equity
Debt to CapitalizationRatio= Long Term Debts/ Long Term Debts + ShareholdersEquity
Interpretation
It can be defined as how much adequate our benefits are in recovering the aggregate ratio. The ratio of the organization has stayed stable relatively throughout the most recent three years as indicated plainly by the above counts. It is a satisfactory circumstance for the organization.
5.5 LongTermDebttoTotalAssetRatio
Debt ratio is equal to total liabilities divided by total assets.
Long Term Debt to Total Asset Ratio = Total Long Term Debts/ Total Assets
Interpretation
It can be defined as how much adequate our benefits are in recovering the aggregate ratio. The ratio of the organization has stayed stable relatively in the course of the most recent three years as shown clearly by the above figuring. The ratio demonstrates that the administration is proficiently utilizing the advantages.
It is an adequate circumstance for theorganization.
5.6 TimesInterestEarned(CoverageRatio)
It briefs that how many times the firm has earned the interest or how many times the firm has user its earnings before interest and taxes to cover the interest expense.
Times InterestEarned = Profit before Interest and Taxes/ Interestexpense
Interpretation
The interest earning ratio is an imperative from the loan specialist perspective. It demonstrates the occasions interest is secured by the benefit accessible to pay interest charges. It is a record of the money related quality of the undertaking. A high ratio guarantees the moneylender a standard and intermittent premium pay.
Interpretation
It shows that organizations must deal with its aggregate resources productively and ought to create most extreme deals through their proper usage. As the ratio, increments there are more income created per rupee of aggregate interest in resource. The firm capacity to create an extensive volume of offers on a little aggregate resource based is an imperative piece of the company’s general execution as far as benefits. It is steady however beneath the business normal so it’s anything but a decent sign for the organization.
Interpretation
Gross profit margin or gross profit ratio is the ratio of gross profit to net sales expressed as percentage. It is very good in the industry and favorable for the firm.
Interpretation
This used to shows the general benefit and subsequently it valuable to the proprietors. Higher ratio is better for the association. It demonstrates the association’s capacity to transform every rupee of offer into benefit. Because of VSS the organization endured misfortunes in 2007 and 2008; however this misfortune was transitory, so the organization should proceed with its task ordinarily.
5.7 MarketRatios
Earnings per share
This ratio shows that how much amount per share does a common stock holder attains.
Earnings per share = Earnings Available for Common Stock Holders
No. Of Common Stock Shares
Interpretation
This graph shows the value of common stock. In 2014 EPS is 0.8 in every next year increase.
Dividend per Share
It is the amount calculated by dividing amount of dividend by number of sharesoutstanding. Dividend perShare= Dividendpaid
No. of Shares outstanding
Interpretation
This ratio shows the amount of dividend paid over each share. As we can see that the amount of dividend on shares is above the industry average so it is an acceptable situation.
Dividend payout ratio
Dividend payout ratio Dividend payout ratio =
This ratio shows how earning support to payment. Good companies have a higher payout ratio. The ratio tells poor position of the company.
CHAPTER 6:
COMPETITIVE ANALYSIS OF THE COMPANY
6 SWOTAnalysis
6.1 STRENGH:
? Biggest and old telecommunication company
? Internationally subscriber
? High optic fiber
? Up-to-date technology
? Human resource skilledpersons
? ITinvestment
? Strong value exchangeservices
? HighProfit
? Motivatedmanagers
? Innovate policy
? GovernmentSupport
? Minimum Staff
? Excellent market reputation
? Internationalrecognized
6.2 WEEKNESS:
? Appraisalproblem
? Promotion criteria
? Quality of service
? Lacking employee trainingcenter
? Staff communication
? Proper evolution
? proper information
? Lack of customer employeefocus
? socialresponsibilities
6.3 OPPERTUNITY
? Handset localmanufacturing
? Telecommunication industrygrowth
? Privatization
? New productintroduces
? AttachGOVT
6.4 THREAT
? Competitors
? Depression ofeconomy
? Internet USB offers
? Internet service
? Bad debt ofprivatization
? Migration of cellularnetwork
? Qualityprofessionals
6.5 DEFINITIONOFFINANCE
Chapter 6: WEEKLY REPORT
The field of finance is broad &dynamic. It directly affects the lives of every person and every organization.
Finance means an art of managing money and is deals with the process institutions, market, instrument involved transfer of money between business and government.
6.6 FINANCEDEPARTMENT
NAME /DESIGNATION OF THE SUPERVISOR (IN THE DEPARTMENT)
Seniormanager: Muhammad Naveed Assistantmanager: Abdul NasirZaman
Finance department is the most important branch of Pakistan Telecommunication Limited. This office is charge the financial plan of each division. Checks, request draft and other installment and so forth recorded in thisoffice.
Finance manager works under General Manager. His range of administration contains three fund officers. Significant capacity of this division, clearly, is to organize assets for organization and furthermore dispense reserves.
These are some activities which I performed in PTCL during my internship. Pre audit of bills
Checking the bills and supporting documents recoding of bills in incoming invoice register. Working on SAP
Parking of bills on SAP posting of bills on SAP Payment of bills onSAP
Preparation of bank reconciliation certificate
Pre-Audit.
I learned during my internship that how to conduct the pre-audit procedure personally conduct the pre-audit procedure for cashpayment.
I checked the following items for pre-audit Checked the total amount of invoices
Rate of tax Cross checking
Checking the Bills and Supporting Documents
Before parking the bills, I checked all the supporting documents which are necessary to attach with bills and these documents are
a. Purchase requisition.
b. Purchase order.
c. Goods receivenote/SAN.
d. Email approvedcopies.
e. Stock registerscopies.
6.8.1 RecordingofBillsinIncomingInvoiceRegisters
I entered the bills in incoming invoice register that is on excel sheet. The information required which I filled was
Vendorname
Billnumber
Nature ofwork
Division/unit
Date ofreceiving
Amount
Paymentdate
Month
Employee number
Status
Region
6.9 WR-3
6.9.1 SAPSoftware
SAP is utilized in PTCL for recording of all kind of invoices, materials, investment and furthermore for Human Capital Management. Fundamental reason for SAP is to incorporate data of all organization divisions. PTCL is working effectively by SAP and refresh their records.
6.9.2 Modules ofSAP:
Modules are the basic leadership of the ventures by the upper level administration. This module tells the representatives that for the specific task which capacities they ought to perform, where to perform, extensions, regions, trade, sub activities, and this is the entire arrangement and projection.
Following are the modules of the SAP:
? Financial accounting modules(FICO)
? Human capital management modules(HCM)
? Material management module(MM)
? Investment management modules(IM)
6.9.3 StepsofinvoicemakinginSAP:
Codes are assigned to perform the procedures and the PO based and Non PO based invoice have different nature and different codes as well. There are four steps of invoice making in the SAP software which are as under:
? Parking ofinvoice
? Posting ofinvoice
? Payment of invoice
? Printing ofcheque
6.9.4 Parking of invoice onSAP
Modules are the basic leadership of the tasks by the upper level administration. This module tells the workers that for the specific task which capacities they ought to perform, where to perform, expansions, zones, trade, sub activities, and this is the entire arrangement and projection.
6.9.5 PO Basedinvoice
In SAP module MIR 07 is used to record the PO base invoices. We enter the
Date
Reference Number
Narration
Amounts
6.10 WR-4
6.10.1 Print for PO basedinvoice
Mir04 is used for printing of PO based invoice in SAP
6.10.2 Non PO basedinvoice
In this we record Non PO base invoices in SAP code of FV60.
6.10.3 Adjustments ofinvoice
I did adjustments of invoices in SAP adjustments of advances that company gives to their vendors. When these advances become mature we add them in expenses. In SAP FV50 is used.
6.10.4 Payment
I have done the process of payment. The code that I entered on the SAP was F-53 through the user I.D of manager. The required information to fill that form was
Date
Amount
Bankaccount
Description
Vendorcode
Four steps are involved in the process of giving an order in PTCL:
? Purchase Requisition
? Purchase order
? Goods receivednote
? Invoice generated
6.10.5 Purchaserequisition:
In buy demand they choose the idea of the request that what sort of request the particular division is providing for their senior. They safeguard the need of the pertinent buy demand in the division. The measure of the request is chosen in the buy order and who will makeit.
6.11 WR-5
6.11.1 Purchaseorder:
At the point when the check of the buy demand is made and affirmed than the request ispassed to the acquirement office in the head office which is arranged in the Islamabad and after the endorsement of them the buy arrange ismade.
6.11.2 Goods receivednotes:
This note is SAP produced note and in this note the particular office or boss guarantees to the acquirement division that the merchandise are gotten. Also, those products are as per their request.
6.11.3 Invoicegeneration:
It is the last advance of this procedure in which the receipt is produced against the products which are obtained. What’s more, through the SAP programming these sections made for the installment of receipt.
There are two types of invoices:
? PO basedinvoice
? Non-PO basedinvoice
6.11.4 Retentionmoney:
Maintenance cash is the sum that the PTCL not to paid to their seller and deduct from their full installment for a half year as per the agreement. Furthermore, this cash is refundable following a half year’s fulfillment. The motivation behind the maintenance of cash is to ensure that the administrations are as per the agreement statements.
6.12 WR-6
6.12.1 Cashimpress:
Cash impress is the cash that the company gives to their employees for the daily little expenses to meet. The maximum range of cash impress is 2000rupees.
6.12.2 Cheque signingauthority:
? For headquarter if there is any chequeto draw then the DDO and the director accounts will sign the cheque for 1 millionrupees.
? If the chequeis up to 1 million to 10 million rupees than it will take two signs of DDO and the general managerfinance
? If the chequeis up to 10 million and above than the cheque will contain two signs of DDO and the Executive vicepresident.
? ] If the zone cheque contains 1 million rupees than the DDO and the one senior manager will sign thecheque.
? If the regional chequeis of 1 million to 10 million rupees than the DDO and general manager will sign thecheque.
? If the cheque amount is up to the 10 million and above than the DDO and EVP will sign the cheque.
6.12.3 AccountingCycle:
PTCL is working under the accounting cycle which is also a standard procedure in the SAP and as they are working on SAP so following are theprocedure:
? Journal
? Ledger
? Trialbalance
? Balance sheet
? Income statement
Cash flowstatement.
CHAPTER 7:CONCLUSION
7 INTERNSHIPPREPARATIONATTHEDEPARTMENTOFBUSINESS
7.1 EDUCATION
One subject is studied called organizationalbehavior
By giving presentation we got practicalexperience
By reviewing the website of the company I got information aboutit
Orientation class of internship is very important for studentsguidance
7.2 MAJORRESPONSIBILITYUNDERTAKENDURINGINTERNSHIP
Amid my entry level position I worked in FINANCE division. In back division I broke down monetary position of organization, deals, benefit, liabilities and resources of the organization. Facilitate in Finance division I worked did pre review, deal with SAP and the most vital I banked Reconciliation declaration (BRC)
7.3 SKILLS AND QUALIFICATIONSACQUIRED
Working withefficiency
Professionalism
Self-Confidence
Supervision
Teamworking
Adaptability
Strong workethics
Working onSAP
Excellent Command on MS Excel andWord
CommunicationSkills
