Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Internship Report
Finance Department
INTERNSHIP REPORT
2008
Dedication
Whose kind co-operation, Blessing, Help and Inspiration gave impetus To complete this work
INTERNSHIP REPORT
2008
ACKNOWLEDGEMENT
I am grateful to Al mighty God who gave me all the strength, courage preservation and patience to finish my Six weeks of Internship Program at SSGC and in achieving my task fruitfully. Then I would like to extend my gratitude to SSGC HR management especially to Madam Shazia Siddiqui for giving me an opportunity to enrich and upgrade my experience and skills. It was quite a great experience for me to work with diversified and literati people and helped me to understand cross-cultural-differences. I would like to take this opportunity to formally thank Mr. Gulab Baloch (Deputy Chief Manger-Fixed Asset), Mr. Saleem Durani (Manager -Store), MR. Anees Hussain (Chief Manager- Local Order Section) and Mr. Wajeeh (Deputy Chief Manager- GDS) for providing their immense support and unwavering guidance during conduct and completion of this internship report on SSGC and it became possible for me to complete this work within short time. I would specially like to thank Ms. Aliya peerzada (Deputy ManagerGDS) and Mr. Waseem (Deputy Manager- Insurance Section) for their constant support and guidance and for solving all my queries during the course of my internship. It was because of their kind efforts that I have been able to explore the practical world in a very professional manner
INTERNSHIP REPORT
2008
NTRODUCTION
INTRODUCTION TO SSGC
Introduction:
Sui Southern Gas Company (SSGC) is Pakistan's leading integrated gas Company. The company is engaged in the business of transmission and distribution of natural gas besides construction of high pressure transmission and low pressure distribution systems. SSGC is a model utility company responsible for supplying uninterrupted natural gas to domestic, commercial, industrial and bulk customers in Sindh and Baluchistan. SSGCL transmission system extends from Sui in Baluchistan to Karachi in Sindh comprising over 3,200 KM of high pressure pipeline ranging from 12- 24" in diameter. The distribution activities covering over 1200 towns in the Sindh and Baluchistan are organized through its regional offices. An average of about 378,468 million cubic feet (MMCF) gas was sold in 2007-08 to over 2.040 million (industrial 3,448, commercial 22,192 and domestic 2,014,827 consumers) in these regions through a distribution network of over 31,877 Km. The company also owns and operates the only gas meter manufacturing plant in the country, having an annual production capacity of over 550,150 meters. The Company has achieved another milestone at the meter plant. It has obtained ISO 9001: 2000 certifications. The Company has an authorized capital of Rs. 10 billion of which Rs 6.7117 billion is issued and fully paid up. The Government owns the majority of the shares which is presently over 70%. The Company is managed by an autonomous Board of Directors for policy guidelines and overall control. Presently, SSGC's Board comprises of 14 members. The Managing Director/Chief Executive is nominee of GOP and has been delegated with such powers by the Board of Directors as are necessary to effective conduct the business of the company.
SSGC at a Glance:
Prepared By: AWAIS MAHMOOD INTERNSHIP REPORT
Page 24 of 95
Core Business:
The main activity of the company is transmission and distribution of gas in Sindh and Baluchistan.
Secondary Activities:
The company is also engaged in certain activities related to the gas business including manufacturing and sale of gas meters and construction contracts for laying of pipelines. Thus the core functions of SSGC can be elaborated as under Purification of Natural gas from Sui Fields Transmission of Natural Gas from Pirkoh, Sari Hundi, Badin, KandhKot, Mari, Daru and Kadanwari gas fields Distribution of Gas in Sindh and Baluchistan provinces Manufacturing and sale of gas meters Construction contracts of laying pipelines
SSGCs VISION
Prepared By: AWAIS MAHMOOD INTERNSHIP REPORT
Page 24 of 95
SSGCs MISSION
To meet the energy requirements of customers through reliable, environment-friendly and sustainable supply of natural gas, while conducting company business professionally, efficiently, ethically and with responsibility to all our stakeholders, community and the nation.
CORE VALUES
Integrity:
Keep Company's Interest above self. Acts in ethical manner. Promote ethical business environment. Take effective actions if observers unethical behaviour or situation. Seen & known to be honest. Lives within means. Intellectually hones.
Excellence:
Makes positive contribution towards the achievement of SSGC's Vision. Strives for Continuous improvement. Respond effectively to customer needs. Takes timely and Quality decisions.
Teamwork:
Builds strong relationships within across functions. Works well with all type of Peoples and corporate with others. Solicits and share ideas/best practice with others. Supports the achievements of Company/team goals. Contributes to team effectiveness using people's different skills and styles. Arrives at constructive solutions while maintaining Positive working relationships. Demonstrates sensitivity.
Transparency:
Promotes open environment. Displays openness and consistency in applying policies & Procedures. Respects dissent and resolves conflicts fairly.
Creativity:
INTERNSHIP REPORT
Page 24 of 95
Responsibility to Stakeholders:
Stays abreast of change in operating environment that impacts our business (i.e. markets, competitors, Technology, customers, suppliers, employees, regulatory, political and public). Create solutions to make Customer needs. Develops colleagues and team members to improve their skills and performance. Ensure Optimum utilization of resources. Balances short term and long term priorities to maximize on results. Ensures compliance of law.
Organizational Structure:
The Company is organized into six functional divisions -Transmission, Distribution, Commercial, Engineering Services, Management Services, and Finance. Each division is headed by a Senior General Manager assisted by a team of professional staff, with the exception of Finance, which is headed by the Deputy Managing Director. Policy matters relating to the natural gas sector are handled by the GOP. OGRA is responsible for regulation, pricing, revenue determination and compliance to service standards. The Board of Directors has the overall responsibility for the management and control over the Company. The management enjoys operational autonomy. The major portion of the work force consists of technically qualified and skilled personnel.
ORGANISATIONAL CHART
Prepared By: AWAIS MAHMOOD INTERNSHIP REPORT
Page 24 of 95
FUTURE OUTLOOK
INTERNSHIP REPORT
Page 24 of 95
Page 24 of 95
DISTINGUISHING FEATURES
Developing Human Assets:
Prepared By: AWAIS MAHMOOD INTERNSHIP REPORT
Page 24 of 95
Edge in Technology:
Quest for excellence and cutting-edge technology has played a key role in SSGC expansion and strength. Above all, technology brings greater benefits to customers. For example, all SSGC meter reading is now carried out through hand-held computers - saving valuable time and minimizing errors. SSGC's computerized billing system prints bills through the online network in the entire franchise areas. Today, SSGC is set to become the most IT enabled Company in the country. Realizing the need for integration of IT into core business processes, the Information Technology Department is rendering strong support to SSGC. A key initiative of this department is the implementation of the Geographic Information System - a computer-based system that effectively provides forecasting data for further strategy development. Increasing the efficiency of business processes is another priority area for SSGC. Enterprise Resource Planning (ERP) software integrates all departments and functions on to a single computer network. Maintaining its technological edge, SSGC has signed a comprehensive enterprise agreement, with Microsoft - the only such agreement by a public sector utility company in Pakistan.
INTERNSHIP REPORT
Page 24 of 95
Telecommunications:
Telecommunications plays a vital role in maintaining high operational efficiency at SSGC. Through the advanced microwave digital network, and with video conferencing facility, all SSGC offices and facilities remain connected 24 hours a day.
Promoting Safety:
SSGC is committed to the health and safety of its employees and preservation of the environment in its areas of operation. Its Health & Safety and Environment (HSE) management system ensures that the standards, processes and procedures needed to achieve safe operations are identified, implemented and maintained.
STRATEGIES
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
COMPANYS OBJECTIVE
The Company aims to supply natural gas wherever there is sufficient load to justify the cost of infrastructure. In many places the gas network is being expanded to meet economic and social requirements through active funding support from the Federal and Provincial governments. In 2003, the Company launched a comprehensive fiveyear gas network development and expansion Plan to connect hundreds of small towns and villages in remote areas of Sindh and Baluchistan, which currently are deprived of piped natural gas. Every year, the Company adds nearly 75,000 new customers (industrial, commercial & domestic) to its customer base and lays hundreds of kilometers. Transmission pipelines and distribution network and installs other facilities such as metering / billing stations in its system using its staff of technically qualified and skilled personnel.
INTERNSHIP REPORT
Page 24 of 95
PERFORMANCE
Over the period 2000-01 2006-07, the Transmission Network has increased from 2, 777 km to 3,290 km i.e. an addition of 285 km (10%) and the Distribution Network has increased from 22,159 kms to 29,832 kms showing an addition of 7,673 km (26%). The above expansion has contributed towards increasing the number of customers from 1.57 million in 2000-01 to 2.040 million in 2007-08. Yearly gas sales have shown an increase from 206,967 MMCF in FY 2000 to 409,375 MMCF in FY 2008. Furthermore, with an addition of around 550 new towns / villages since 2000-01, the total strength of towns and villages on gas has reached 1260 by the close of FY 2007-08. Annual gas sale revenue has increased from Rs. 29.237 billion in FY 2000-01 to Rs. 85.716 billion in FY 2006-07, showing an increase of (56.479 billion) over the past seven years. This increase is mainly due to connecting newly discovered gas fields through transmission system network enhancement and optimizing gas flows. Meter manufacturing capacity has increased from around 292,750 in FY 20002001 to over 513,250 in FY 2007-08 fully meeting increased requirements of SNGPL and SSGC.
INTERNSHIP REPORT
Page 24 of 95
Personal Introduction:
Currently, I am studying in the 2nd oldest university of Pakistan, University of Sindh, Jamshoro in BBA (Hons) P-III. I have completed five semesters of my studies and have been successfully enrolled in the sixth semester. . I have scored 84% with CGPA (3.54) in 2nd year. At present, I have done introductory courses of Management, Economics, Marketing, Finance and Accounting. However, I have developed substantial interest in Finance and therefore, plan to do my majors in Finance. I have a keen interest in doing internship in SSGC (Sui Southern Gas Company) as it would be beneficial for me in future and it is the leading and best company. My internship experience at SSGC has provided me with valuable insight and has helped me in increasing my knowledge of the subject. It has introduced me to the operations that take place in the professional world and has provided me with the opportunity to work in a dynamic environment where I can exploit my concepts.
Personal Data:
Father Name: Date of Birth: NIC No: Marital Status: Religion: Nationality: Cell No: Email Address: Khalid Mahmood 27th May, 1986 41304-2883443-3 Single Islam Pakistani 0321-3050821 awais_ghauri@yahoo.com
Computer Skills:
Dos, Windows-98. 2000. XP MS-Office- 2007, XP Internet HTML and basic Knowledge of networking Effective Communication Internet Browsing
INTERNSHIP REPORT
Page 24 of 95
MY EXPERIENCE IN SSGC
Purpose of the Internship:
The purpose of internship is to learn the skills regarding working in industries, behavioral conduct, know-how about the corporate culture & Organizational environment. It was essential to me that I enter in highly regarded or reputable organization. During our BBA degree I have been studying the different business related subjects, than as the time I could gain real experience. Throughout Six weeks I learnt a lot of things regarding my specialization, which were quite informative and bit challenging. Different projects & assignments had promoted me to meet challenges and be confident.
Personal Learning
Corporate Culture; Understanding:
As the basic purpose of internship is the introduction of corporate culture to the students. It aims at understanding how the things are practically going on in the organizations, how the theories we read in books are implemented and executed. In this regard, I learnt a lot in the dynamic organization of Pakistan SSGC. I learnt the core values of the organization. The meeting and communication with the diverse people made me understand and adjust myself with the different people working in the organization. More over, the dynamic employees shared their ups and downs and other different experiences of their corporate life that has been a great learning for me.
Punctuality:
Punctuality the first and foremost things which is essential for a professional at work i.e. punctuality and the very first thing I have learnt in SSGC i.e. previously I have heard that famous quotation which goes like that late comer must suffer I did not know in terms of what he may suffer. At SSGC I saw its practical exhibition in terms of not paying the attention of BOSS or he may not learn as he can for his slackness for being late, SSGC made me punctual and made me realized that TIME IS MONEY.
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
FINANCE
Finance
Treasury
Accounts
Payroll
Insurance
Loans
Fixed Assets
Payments
Investments
MIS
Gas Purchase
Gas Sales
Distribution System
Transmission Project
Taxation
Financial Feasibilities
Revenue Control
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
TREASURY FUNCTION
The Treasury Function Department of the finance department basically deals with the disbursements, collection, receipts, management of funds, payment of foreign or domestic loans, revenue control and reconciliation of bank and customer accounts. In short, treasury functions deals with the flow of money either in the form of inflows or outflows. An important task of the Treasury function department is to keep a check on the companys current liabilities account and make sure that their current liabilities do not exceed their current inflows of cash. The treasury function department can be further subdivided into five major categories, which are somewhat interrelated. The division is as follows: Cash & Bank Loan Payments and Funds Management Revenue Control Taxation Investments All these sections have separate section heads who are responsible for the activities of the people working in their section. These section heads report to Chief Manager (CM) Treasury Function who is responsible for the overall activities of the treasury function Department.
FINANCE DEPARTMENT
The Finance Department is further subdivided into sections, which includes the following: Payroll Fixed Assets Insurance Gas Purchase Transmission Project Payments
INTERNSHIP REPORT
Page 24 of 95
Stock-in-trade:
The stock in trade comprises of Gas in pipelines and Meter manufacturing division. Stock of Gas in transmission pipelines is valued at lower of cost determined under the weighted average basis and net realizable value whereas the materials for meter manufacturing division is valued at lower of moving average cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
Trade Debts:
Trade debts are carried at cost less provision for doubtful debts, if any. Balances considered bad and irrecoverable are written off when identified.
Page 24 of 95
Deferred Credit:
Amount received from customers and the government as contributions and grants for providing the service connections, extension of gas mains, laying of transmission lines, etc are deferred and are recognized in the profit and loss account over the useful life of the related assets.
Revenue Recognition:
Revenue from Gas sales is recognized on the basis of gas supplied to customers at rates periodically announced by the Oil and Gas Regulatory Authority (OGRA). The meter rental is recognized monthly at specified rates for various categories of customers on an accrual basis whereas the sale of meters and gas condensate is recognized on dispatch to the customers. Deferred credit income is amortized to the profit and loss account over the useful life of the related assets. Dividend income on equity investments is recorded on accrual basis. However the company is required to earn a minimum annual return before taxation of 17% per annum o the net average operating fixed assets (net of deferred credit) for the year. Income earned in excess or short of the above guaranteed return is payable to or recoverable from the Government of Pakistan and is adjusted from or to the gas development surcharge payable to or receivable from GOP.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
AREAS OF WORKING
I sought opportunity to join SSGC to upgrade my skills in multi-dimensional approach to the section of the Finance Department. Whatever I attained there is elaborated as under: Fixed Asset and Capital Budget General Ledger Gas Distribution System (GDS) Inventory Accounting Local Order Insurance Section
INTERNSHIP REPORT
Page 24 of 95
FIXED ASSEST
Responsibilities of Fixed Assets:
Following are the main responsibilities of fixed assets: 1. Making proposed budget (CAPEX), department wise, account wise, company wise. 2. To maintain the capitalization, depreciation, retirement and disposal of all the fixed assets. 3. Preparation of capitalization and WIP schedules of all the companies i.e. Karachi distribution, Hyderabad distribution, Baluchistan distribution, Transmission and Head Office. 4. Prepare quarterly, half yearly and yearly accounts and schedules of organization.
Budget Phase:
Budget is a financial statement which is prepared before the starting of the financial year containing the plans and policies to be pursued during that period. The budget section of finance department prepares capital expenditure budget (CAPEX) annually for all the departments of SSGCL. When budget section starts to create the budget, all the departments are notified to make the proposed budget themselves for there departments according to the requirement of their department and send it to budget section. After receiving the proposed budgets from the departments, the budget section examines it & discusses all particulars with the related head of department & staff giving special consideration to the justification of fixed asset requirement & funds available in the company. The budget section can increase or decrease the proposed amount of budget keeping in view, the available amount in the budget for that department. After the proposed budget is prepared by the Budget Section, budget is then sent to GM & SGM for its approval/changes & finally to the M.D for approval. When the budgets for all the departments have been finalized and approved by MD, then the agenda is prepared by budget section, which is reviewed by finance committee. Board of directors grants approval to the agenda after which the budget is authorized to be followed. Each department is then informed through inter departmental note along with a copy of their budget.
INTERNSHIP REPORT
Page 24 of 95
Depreciation:
Once an asset has been capitalized, working for its depreciation starts. Full year depreciation is charged for the first year regardless of its purchase data. The company uses the straight line method of depreciating except for meter plant, where reducing balance method is used. Depreciation rates differ for different assets. It even differs for same assets in different cities. In the certain situation we call for making adjustments e.g. transfer of an asset from one unit to another, different between assets in books and its physical existence etc.
INTERNSHIP REPORT
Page 24 of 95
Approval In Budget
Asset Is Capitalize d
* Department ** Fixed Asset Requisition *** Material Management ****Performance Bank Guarantee
Work In Progress
(In case of construction)
INTERNSHIP REPORT
Page 24 of 95
Inspection of the asset to be retired is conducted for verification of the condition of that asset Asset sent to
Retirement advice is approved / disapproved on the basis of inspection report by GM, DGM and MD
store at KT for disposal Section Inspection report sent to the inventory along with ARA
INTERNSHIP REPORT
Page 24 of 95
Step
Requsition
Accounting
No Accounting
Dr. /Cr.
Contr a
Purchasing
Requisition
No Accounting
Inventory
Receiving
3081111 2073214
C1 C2
Inventory
Deliver
3011999 3081111
C3 C1
AP
Invoice
2073214 2073201
C2 C4
AP
Payment
C4
FA ADDITION
Assets Assets Assets Assets FA MODULE FA MODULE FA MODULE FA MODULE Asset Cost Account Asset Clearing Account Dep. Exp Acc. Dep. Asset Cost 3011999 5062101 3012117 DR C3 DR CR CR
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
change the Queue from "New" to "Post" and enter the following Information.
a. Category.
INTERNSHIP REPORT
Page 24 of 95
C. Location.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
Purpose:
To maintain proper and accurate, books of accounts. To facilitate and co-ordinate the annual audit To comply with the policies and the procedure notified by OGRA from time to time. To comply with the policies and the procedure notified by Security and Exchange Commission of Pakistan (SECP). To report the results to board of directors and share holders of the company
INTERNSHIP REPORT
Page 24 of 95
Sui Southern Gas Company Limited The General Ledger Accounting Cycle
INTERNSHIP REPORT
Page 24 of 95
6. Generate recurring journal and MassAllocation journal batches based on formulas you defined. 7. Review the details of your unposted journal batches. To view and optionally change unposted journal batches online, use the Enter Journals window. To view unposted journal batch detail online, use the Journal Inquiry window. To print a report showing unposted batch detail, produce a Journals - General report (set the Posting Status parameter to unposted). 8. Edit unposted journals to change information about an unposted batch or its journal detail, including the batch period and the journal currency. 9. Post your journal batches manually or automatically. 10. Check for posting errors. General Ledger automatically produces a Posting Execution Report so you can check the results of your posting. This report notifies you of any errors. 11. Reverse journals. You can reverse a posted or unposted journal entry. Once you assign a reversing period to the journal, generate and post the reversing batch. 12. Revalue your foreign-denominated assets and liabilities to reflect exchange rate fluctuations at the end of each accounting period. 13. Translate your actual account balances to any foreign currency for reporting purposes. 14. Consolidate sets of books by defining and running a consolidation. You can consolidate sets of books that have different charts of accounts and calendars.
INTERNSHIP REPORT
Page 24 of 95
For generating general ledger reports we first need submit a request. We can either submit a single request or a request set.
INTERNSHIP REPORT
Page 24 of 95
After selecting the type of request, we need to enter the type of report that we want to view. In order to run the request, first we need to type in the name of the report that we want to generate. Oracle GL provides us with a number of options. For example we can view a detail Trial Balance detail report or an account analysis Reports etc.
INTERNSHIP REPORT
Page 24 of 95
Journal Report:
These reports print journal entry batches and include journal entry subtotals, and descriptions and reference information for each journal entry line. You can report on foreign currency, posted, non-posted or error journal entries and report on a specific batch or on journal entries from a specific source. Reports can be generated in clusters and groups by entering any of the following: Company Function Location Organization Unit Project
After selecting the type of report that we want view, we need to enter the details of the projects that we want to view. Details like segment, Account type, Period Currency etc.
INTERNSHIP REPORT
Page 24 of 95
The Screen shot below shows the format of the generated reports.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
Page 24 of 95
GDS - An Introduction:
The Gas Distribution System (GDS) is one of the vital sections of SSGCs Finance Department. The basic task of the Finance departments GDS is to perform all the accounting activities related to the expansion of distribution and transmission network for enhancement of gas supply to power plants, industries, domestic and commercial sector including supply of gas to previously deprived areas in the domestic sector. Distribution System accounting include development of mains laying rates (MLR) all region rectification and monitoring of Distribution Budget of all region and project accounting related to distribution Projects. For achieving the above mentioned targets the GDS of the finance department performs a number of activities. These include preparation of feasibilities of Transmission projects and Gas fields under various options, preparation and monitoring of Annual Distribution budgets for all new town and villages, uploading the budget of each project on ERP system, processing Rehabilitation, Reinforcement and New towns schemes of all regions including re-appropriation of Budget and settling issues related to Distribution of all regions, maintaining funds position related to New Towns & Villages and coordinating with Sales Department and Ministry of Petroleum & Natural Resources (MNPR) in this regard . It includes submission of performance reports/ status reports to MNPR through Sales.
Infrastructure:
SSGCL transmission system extends from Sui in Baluchistan to Karachi in Sindh comprising over 3,200 KM of high pressure pipeline ranging from 12-24" in diameter. The distribution activities covering over 1200 towns in the Sindh and Baluchistan are organized through its regional offices. An average of about 378,468 million cubic feet (MMCF) gas was sold in 2007-08 to over 2.040 million customers. It includes 3,448 industrial, 22,192 commercial and 2,014,827 domestic consumers in these regions through a distribution network of over 31,877 Km. The company also owns and operates the only gas meter manufacturing plant in the country, having an annual production capacity of over 550,150 meters.
INTERNSHIP REPORT
Page 24 of 95
Responsibilities of GDS:
The issuance of Job cards, Journalisation, reconciliation of deposit is also the responsibility of the finance department. For the GDS, it is also necessary to ensure that the amount transferred to Deferred Credit with respect GOP funds & customers advance is in accordance with IAS & Companys policy. Preparation of financial feasibilities is one of the major tasks of this department. Feasibility reports are prepared for providing recommendations to the managements regarding the approval of various projects. These financial feasibilities and reports are prepared for the following projects. For supply of Gas to Industrial, Commercial, CNG stations and Co-operative Housing society on cost sharing basis. Transmission projects Supply of gas from Gas fields Construction of pipeline and to received pipeline rental. Supply of gas to New towns & villages on request of GOP Industrial estate Other Capital project This section consists of one Deputy Chief Manager and two Deputy Manager. Two ERP executives are also a part of the GDS team.
INTERNSHIP REPORT
Page 24 of 95
Visit The Customer Premises Determine The Cost Of Customer Connection Approval By GM Sales Quotation Send To Customer Customer Pay The Advance Receipt Send To The Finance Department Finance Dept. Issues The Job Card Job Card Send To The SITE Through Sales Dept. SITE Team Start The Work Once The Job Has Completed, Job Card Send To The Finance Dept. Through Sales Finalize The Project By Finance Dept
Page 24 of 95
INTERNSHIP REPORT
Store
Project Store Dr. Cr.
GDS
Asset/Revenue Project Advance Loan/Deferred Credit/Installation Cost Dr. Cr. Dr. Cr.
INTERNSHIP REPORT
Page 24 of 95
Categories of Customers:
The SSGC is the second largest gas production and transmission company of the nation with a franchise covering Sindh and Baluchistan. Commencing operations in 1954 as Sui Gas Transmission Company (SGTC), SSGC today delivers natural gas to over 1.94 million customers comprising 3,184 industrial units, 20,971 commercial organizations and 1.92 million domestic customers in more than 1,200 towns and villages. SSGC is widely acknowledged for its world-class expertise in the engineering, design, construction, operation and maintenance of an extensive gas supply infrastructure and is fully capable of providing innovative gas technology solutions to other companies in the region. Sui Southern Gas Company Limited has four major categories of customers.
INTERNSHIP REPORT
Page 24 of 95
Domestic Customers:
A large portion of SSGC customer base comprises of Domestic customers. Nearly 98% of SSGC customers can be categorized as domestic users. These domestic customers include residential colonies, mosques, churches, temples, other religious places, and hostels attached thereto, Govt. and Semi-Govt. offices and hospitals, Govt. guesthouses, armed forces messes and universities, colleges, schools and private educational institutions, orphanages and other charitable institutions. Keeping in mind, the SSGC motto 'Service with a Smile', the people at SSGC have always strive to provide un-matched and diverse services to customers through innovative and progressive ideas in line with best international practices. As a result, SSGC has nearly 1.92 million domestic customers in 6 major cities, over 100 smaller towns and 930 villages. Of these, nearly 1.40 million are located in Karachi and the reaming in the rest of the Sindh. Almost 686 new commercial customers have registered only in Karachi in the year 2008. The processing fees for domestic customers are Rs. 1000 and it is non-refundable.
Commercial Customers:
Commercial segment is also one of the important segments of SSGC customer Base. This category includes all establishments registered as commercial units with local authorities or dealing in consumer items for direct commercial sale like cafes, bakeries, milk shops, tea stalls, canteens, barbershops, laundries, places of entertainment like cinemas, clubs, theaters, and private office, clinics, maternity homes and other small businesses etc. The number of commercial consumers currently exceeds s 20,000 and the list is growing. In the year 2008, in Karachi only almost 144 new commercial customers have registered.
Industrial Customers:
SSGC is doing an excellent job in fulfilling the gas needs of the industrial sector of our economy. The customers engaged in the process of creating value added finished products from industrial raw materials are called industrial customers. This category of customers includes the CNG stations, Ice factories, Cement factories, Pakistan steel, FFC Jordan Fertilizer. However, SSGC is striving hard to increase its customer base and to meet the everincreasing demands of its customers. The gas consumption of the industrial sector has been showing growth every year. More than 3000 industrial customers buy natural gas from SSGC. In the year 2008, SSGC have catered to almost new 374 industrial
INTERNSHIP REPORT
Page 24 of 95
Power Generation:
All units generating power through gas are called power generation units. This includes WAPDA, KESC, and HABIBULLAH COASTAL. Sales to the power sector constituted 46.5% of the total volume. KESC, the single largest customer has converted its entire power generation to natural gas and now consume between 200-300 mmcfd of gas to run its 1400 MW gas turbine power plants. KESC accounted for 28% of SSGC sales in 2004-05.
Existing Areas
INTERNSHIP REPORT
Page 24 of 95
Functions of DSS Existing areas Mains Extension Service connections Meter Installation Other Capex Recoverable Jobs
The core activities of DSS can be broadly divided into two major areas Existing Areas New Town and Villages DSS works for supply of gas to the previously derived areas which includes many towns and villages and also for the enhancement of the existing gas supply system to our industrial, domestic and commercial sector. However the detail process is discussed in the later part of the report
INTERNSHIP REPORT
Page 24 of 95
Distribution Mains
Minor Mains
Paid Mains
Main extension can be classified into two major categories Supply/ Feeder Mains Distribution Mains
Distribution Mains:
Distribution Mains consist of network of pipes laid in streets and towns for providing gas to the customers.
INTERNSHIP REPORT
Page 24 of 95
Major Mains:
As per present practice of the company, Mains extension of 1 km and above for any particular scheme or area is categorized as Major Main. All such cases are approved by the management once in a financial year in the Annual Development Plan.
Minor Mains:
In cases, where length of mains extension required, is less than 1Km then it is categorized as Minor Main. In this case also, it is necessary to get certain kilometers approved by the management. However, these cases are processed throughout the year under the limit of approval obtained.
Paid Mains:
When the case does not fall under the CCE criteria and the capital cost per consumer far exceeds CCE criteria then the case is treated as PAID MAINS. Under this case an option will be given to the customer to either process the project through cost sharing or on self-finance basis, if they agree.
INTERNSHIP REPORT
Page 24 of 95
Standard Procedures Request for mains Review of request Planning and site survey Cost calculation Feasibility Payments Issuance of job card Execution of the job Commissioning advice Issuance of Circulars Booking of cost
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
Review of Request:
The request will be review for the completion of documents. Sales department ensures that area drawing is Available Not available If the area drawing is available then the case is forward to planning for the survey of site. If the drawing is not available then sales department informs the customer to arrange the area drawing. If the customer arranges the area drawing then the case forward to planning for site survey otherwise the case will not be further proceed. Sales department forwards the case to planning department on Book No.1
Cost Calculation:
After receiving the survey proposal, sales departments works out the estimated cost of the case according to the data provided by the planning department. Sales department checks that whether the extension is for major mains or minor mains. If the case is for the extension of major mains and it is feasible then the case is included in the ANNUAL DEVELOPMENT PROGRAMS PENDING file. The criteria for checking the feasibility of the case is fixed by the CABINET COMMITTEE ON ENERGY (CCE) are as under: PROVINCE Punjab and Sindh N.W.F.P Balouchistan CAPITAL COST PER CONSUMER Rs.20,000 Rs.40,000 Rs.100,000
If the case is falling under the above criteria then it is treated as feasible. A list is prepared by the sales department on the basis of least cost method (projects are
INTERNSHIP REPORT
Page 24 of 95
Approval of Project:
The criterion for the approval of the project is as under: CASE II PROJECT COST Less than or equal to 1 million More than 1 million Theses projects requires approval Theses projects are forwarded to from two SGMs finance department for the preparation - SGM ( Customer Services) and approval of financial feasibility of - SGM (Transmission & the project Distribution) CASE I
Feasibility Study:
Following are the steps involved in the process of feasibility. Letter from Sales department Preparation and approval of feasibility Letter to sales Department
INTERNSHIP REPORT
Page 24 of 95
Sui Southern Gas Company Limited Step (b): Preparation and Approval of Feasibility Study:
DM accounts prepare a feasibility report. DM accounts calculate the impact on Gas Development Surcharge (GDS). And works out the whether the cost of project being financed by the company or the customer as per the mentioned policy of the company. Category of Connection Industrial / CNG connections in existing areas / new areas Impact on GDS after Allocating for Regulatory Return Irrespective of Impact Project Cost Project Cost is lees than Rs.1 million Project cost is more than Rs.1 million Policy
Full Positive
50% project financed by the customer refundable over 48 monthly installments with nominal interest. 50% project financed by the customer refundable over 48 monthly installments with nominal interest. 100% cost of mains recovered from customer as non-refundable
Partial Positive
Negative
INTERNSHIP REPORT
Page 24 of 95
Execution of Job:
The job is executed with the involvement of Planning and Construction.
Commissioning Advice:
The construction department sends a commissioning advice to sales department to inform that the area is now on gas.
Issue of Circulars:
Sales department issues circulars to registered contractors stating that they can start the sales activities. This circular is only issued in the case of major mains.
Booking of Cost:
All executed job cards are sent to finance department along with all material requisitions and other coast details for the booking of cost of the scheme.
INTERNSHIP REPORT
Page 24 of 95
STORES SECTION
The store is responsible for receiving, keeping and sending all the necessary materials the company uses for its operations in various locations throughout the country. All the items have a 9-digit index number.
Purpose:
To check the store balances, maintain and control the records of every kind of stock/material placed in stores at different locations of company. Here, in SSGC Head Office record of each store all location in company is controlled and checked for proper receipt and issue of items.
Working:
1. Extracting stores balances in ERP. 2. Checking of stores balances with ledger balances on ERP. 3. Reconciliation store stock loan balances with ledger balances for the more accuracy. 4. Checking of miscellaneous reports of stores balances for confirmation. 5. Preparation of reports of stores stock on quarterly, half yearly and annually.
INTERNSHIP REPORT
Page 24 of 95
The following chart shows the different documents, which causes inflows and outflows from the stores.
Debit Adjustment
Receiving Statement Local / Imports
Return Vouchers
STORE
OUFLOWS
Material Requisition Form Meter Requisition Form
OUT
Credit
Adjustment Voucher
INTERNSHIP REPORT
Page 24 of 95
COMPANY TRANSMISSIO N
DISTRIBUTION
METER PLANT
DISTRIBUTION STORES
DISTRIBU-TION STORE
KARACHI
SINDH
QUETTA
HYDERABAD
SUKKUR
QNGDP
GULSHAN STORE
NAWABSHAH
LARKANA
ST. QUETTA
ST.STORE SITE
ST. HYDERABAD
ST. SUKKUR
DISTRICT SITE
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
TRANSMISSION STORES
TRANSMISSION
OPERATION STORE-KT
HQ-III HYDERABAD
HQ-II NAWABASHAH
HQ-I, SUKKUR
IRBPC-HQ-DADU
IRBPC-HQ SHIKARPUR
QPL(O&M)-SIBI
QPL(O&M)-QUETTA
CD-KHADEJI
PIRKOH-SUI
ST. KHADEJI
METER PLANT
ST. METER PLANT
METER PLANT
INTERNSHIP REPORT
Page 24 of 95
STORE DEALINGS
Store accounting is based on meaning average basis. Each item has been allotted index number according to the description and specification of material. Store index is based on seven digits having fields of 00/00/000. 1st 2 digits denote main section to whom material is to be sent e.g. HO, Trans, MMP, etc. 2nd 2 digits denote sub section e.g. Finance in HO etc. 3rd 3 digits denote serial no of item like as Printing Paper, Pen, Pipes etc. Stores system is based on the following store documents: 1. Material Receiving Statement Foreign Receiving Statement Local Receiving Statement 2. Material Requisition 3. Inter Store Stock Transfer 4. Material Return Voucher 5. Adjustment Memo Store accounting is based on above store documents for generation of cost of material received of issued.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
LOCAL ORDER
The local order section is one of the most important section of finance department. The local order section entirely responsible for the payment of bills to various suppliers and vendors. This section is only responsible for make payment to the material suppliers. This section prepares the voucher for only tangible goods not for intangible goods (services). The main object of LO is to make ensure, secure and smooth payment to the supplier timely and to gain the confidence of suppliers. The bill payments made under LO are classified into: Revenue Job denoted by 11/TKT Stores Stocks Items denoted by 12/TKT Capital Job denoted by 13/TKT
This section deals with material management department, R&D (store) and the suppliers. LO section uses the Oracle application software to print a voucher after punching data into system. The advantage of this software is that, if the wrong data is punched in to the system, the voucher will not be printed. LO section does not go though the payment process if any of the required documents are missing just like, purchase order, receiving statement and the invoices. In LO, payment system under go though some steps and procedures.
INTERNSHIP REPORT
Page 24 of 95
TENDER ENQUIRY
QUOTATION
PURCHASE ORDER
INVOICE
RECEIVING STATEMENT
APPROVAL
INTERNSHIP REPORT
Page 24 of 95
Tender Enquiry:
Once the requisition is submitted and approved by the GM of material management department, the tender process takes place. SSGCL issues the tenders for the purchasing of material through advertisement in newspapers. All the potential and interested suppliers come forward and submit their quotations and bids. Quotations are taken by three lowest bidders.
Purchase Order:
After the bid selection and approval from top authorities, the evaluation report and purchase order is prepared with five copies, and the copy of purchase order is sent to these following departments. Procure Department. Finance Department Supplier (Original) R&D Department Intender copy
Evaluation report is prepared by analyzing the budget available for concerned department. If the budget for concern department is available, the purchase order is sent to supplier. After the success of evaluation report, the order is placed through purchase order. Purchase order comprises the quantity of material needed, the price of material, date on which the order was placed and the date of delivery. Purchase order also comprises the name of supplier and purchase order number.
Invoice:
Invoice is a bill, which is prepared by supplier and sent to the customer for payment.
Receiving Statement:
When the materials are received and checked, receiving statement is prepared at R&D department (store) and sent to bill section. Receiving statement comprises amount of quantity, order number and the date on which material was received.
INTERNSHIP REPORT
Page 24 of 95
This is the income tax, which is deducted from payable amount, and then tax is given to tax department of Pakistan.
20 % withholding tax is deducted from GST amount and then SSGC gives that amount to sales tax department.
LD is deducted from payable amount if the delivery is late. 0.01% is deducted for one day. LO can deduct only up to 10% of payable amount even late delivery exceed the 100 days.
Bank Guarantee:
It is the practice of SSGC to obtain bank guarantee from the supplier where tender price exceeds Rs. 500,000 with respect to purchase order.
Financial Powers:
Previously payments up to Rs. 100,000, 200,000, and Rs. 500,000 required to be approved by DCM, DGM and GM respectively. However, Deputy Managing (DMD) has approved revised financial powers.
INTERNSHIP REPORT
Page 24 of 95
Stores /Revenue / Capital Account Sales Tax-Adjustable Sundry Creditor Sundry Creditors Liquidated damages Income Tax Deducted at Source-Payable
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
5. Now we click on MATCH to match the Purchase Order (PO) with the Receiving Statement.
INTERNSHIP REPORT
Page 24 of 95
7. Now we click on the ACTIONS to validate the entry and do the following actions: Validate and force approval Force approval and release hold Create accounting
INTERNSHIP REPORT
Page 24 of 95
9. First we select the LO PAYMENT VOUCHER and then give following parameters. Batch name Supplier name Then click on SUBMIT to run the report.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
Insurance Section
In the present world, where life is full of anxiety, dangers and risks, insurance is essential to protect and compensate for sudden loss of life and property. It has also been made compulsory by law in most of the countries to protect assets/property of Government concerns and corporate bodies. Basically insurance cover is confirmed when premium is fully paid and POLICY is issued by the insurers, but in case of very huge volume of business like that of Sui Gas Southern Gas Company Limited, a HOLD COVER letter from the insured is enough for confirmation of insurance cover.
2. Lodging and settling of Insurance claims under above mentioned policies. 3. Renewal of Fire Insurance and other policies on Annual Basis. 4. Preparing Budget of Insurance on Annual Basis of following: a. b. c. Fire Insurance Motor Vehicle Insurance Employees Benefit
5. Payment of Debit Notes to NICL and Adamjee Insurance throughout the year. 6. Passing Recurring JV of Fire Insurance and Motor Vehicle on Monthly basis. 7. Correspondence with NICL. 8. Correspondence with Surveyors. 9. Correspondence with other departments. 10. Preparing Reports for Management.
INTERNSHIP REPORT
Page 24 of 95
Fire Policies:
It provides full comprehensive coverage in respect of Loss or damage to property due to fire and lightening , which can be extended to cover explosion, earthquake (fire and shock), atmospheric disturbance (rain, flood, hurricane), heat or combustion, riot and strike damage etc. NICL provides this coverage in conjunction with the fire. It provides protection against loss of gross profit incurred as a result of business interruption or interference in business caused by an event indemnifiable under fire and allied perils policy. Presently SSGC Fire Insurance Policy is taken from NICL Insurance Company. Following are the list of Fire Insurance Policies: A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. P. Q. R. Gas Pipeline: Transmission and Distribution. Compressors. Stores. Badin Gas: Liquid Handling Facility. SCADA. Gas Odorants. Consequential Loss of Profit. Compressors Terrorism. LHF Terrorim Buildings: other than Head Office Contents in Company's Premises including Head Office and other location Construction Equipment at Khadeji Buildings: Head Office Telecommunication, Plant & Machinery at K.T. Computers Including Lap Top. Hand Held Computers Plant (Meter Plant) Including Building. Stores at Meter Plan.
INTERNSHIP REPORT
Page 24 of 95
Accident Policies:
All the Accident policies are taken from NICL which are mentioned below:
c) Fidelity Guarantee
This policy covers the risk of employees embezzlement and misappropriation of cash and other assets of the company.
d) Workmen's Compensation
This is mandatory by law. As per law SSGC is bound to provide insurance cover to its contract employees.
e) Public Liability
This policy is obtained to reimburse loss sustained to assets of third party under possession of SSGCL.
3. Marine Policy:
Marine insurance policy covers the risk of imports and exports as per requirement of the organization. This policy can be extended to provide adequate cover to protect all goods in transit by other modes of transportation, viz., by Air, Rail & Road. Through insurance company the goods are protected from the time the goods leave the sellers warehouse until they reach the buyers warehouse. The party usually responsible for insuring the goods is determined by the sales contract. To help the insured familiarize with the buyers and sellers responsibilities. Presently SSGC Fire Insurance Policy is taken from NICL Insurance Company.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
The interests of suppliers, manufacturers, contractors as well as subcontractors can be included in the policy. Cover the project site and terminates on completion of testing or handing over of the project to the principal or the period chosen, whichever is earlier. Presently SSGC Erection All Risk Policies are taken from NICL Insurance Company.
Voluntary Insurance:
Voluntary Insurance has following features: The plan is specifically designed for the organization. No direct cost to the organization as employer Each employee decides the level of cover they want. Involves minimal administration and paperwork.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
Sui Southern Gas Company Limited Documents Required In Case Of Group And Personal Accident Claims:
1. 2. 3. 4. 5. 6. Claim form: Completed and signed by I.R. or H.R Department. Physicians statement. Proof of age. Death certificate. Burial certificate. Photocopy of NIC of the deceased.
First three documents are provided to insurance section by procurement department and insurance certificate is available with the section.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
Case II : Total loss of Asset I In case of total loss of asset. Booking of Loss: Recoverable From Insurance Company Asset Dr. Cr.
INTERNSHIP REPORT
Page 24 of 95
II
At the time of Settlement of claim from Insurance company: Cash / Bank Recoverable From Insurance Company Dr. Cr.
INTERNSHIP REPORT
Page 24 of 95
Insurance Section Inform NICL With in 15 Days From The Date Of The Loss
Surveyor Performs the Survey of the Location And Send Insurance Section List Of Required Documents
NICL Deducts Rs. 20 Million Voluntary Excess on Each And Every Claim
INTERNSHIP REPORT
Page 24 of 95
POLICIES:
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
3.
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
INTERNSHIP REPORT
Page 24 of 95
Page 24 of 95
ment Issues:
Manage
During my internship, I observed that the contract employees are unfairly treated poorly motivated because of their dissatisfaction with pay and working conditions. The salaries of the contract employees are very low as compare to amount of work performed by them. Contract employees should given a chance to work on career basis.
Lack of Training:
There is lack of training in some departments which create problem for employees to work on the ERP system.
Recommendation:
It is recommended that training should be given to each employee periodically. Sufficient training of the human resource is very important, so they would become acquainted and proficient with the ERP system that is implemented. SSGC needs to address various kinds of issues like some employees are under-valued, some are under-trained, and some may be under utilized. Similarly some may be poorly motivated and consequently perform well below their true capability.
ISSUE:
It is observed that in Local Order (LO) Section payment of bills are delayed due to inefficiency of employees and no check and balance system is there. Some times Receiving Statement comes late from stores because of in efficiency of the stores departments. And sometimes some bills are processed first because of favoritism.
Recommendation:
The payment of invoices should be paid on first come, first out basis. Proper time frame should be followed for the payment of the bills i.e. 15 days after the delivery date of material to maintain the trust of suppliers on the company.
INTERNSHIP REPORT
Page 24 of 95
3.
hip Program:
Stipend issue:
Interns
Company policy for MBA/BBA internees is rather unfair. Some of the internees are paid stipend while some of them are not. This creates question in the mind of internees about company policy for internees. Company should have a same policy for all internees i.e. all internees should be paid stipend equitably.
Issue:
During my internship, I interact with many employees. Some of the employees of finance department of some sections are very cooperative while employees of some sections are non-cooperative like GL section.
Recommendation:
In my opinion the objective of any internship program should be to facilitate the learning of the internee, provide an environment where he/she could implement and observe the practicality of the theories learned. If proper documentations are maintained then it may help in the understanding of the internees of the business processes as well as decrease the amount of interaction with employee. Section incharge of each department should be directed to cooperate with internees.
INTERNSHIP REPORT
Page 24 of 95