Multan electric power company (MEPCO) Internship Report On MEPCO (WAPDA) Office of the Manager Operation MEPCO Multan circle 1|Page Multan electric power company (MEPCO) Internship report submitted to the department of Management science, Education University Multan to full fill the requirements of BBA (Hons) Degree By M.Shehroz khan Roll# 1167 BBA(HONS) Session 2009-2013 Coordinator Prof: Sohail chuhan Department of Management sciences Education University Multan Campus Dated: 2-07-2013 2|Page Multan electric power company (MEPCO) Preface “Genius makes its observations in short hand; talent writes them out at length.” Christian Nevell Bovee As mentioned by the above quotations observing and on site viewing are every firm base for learning. We learn a lot more by seeing the theories, we read in books, applied practically by the pros and by seeing how they actually put them to work. If we mull over the significance of internship program then we will be able to bare the facts that internship enhance ones practical loom towards work and provide maximum chances for learning, which will obviously help out candidate in the practical fields. The intention at the rear about internship program is that the students can analyze, observe, feel, examine the organization environment and equip themselves with the tools to face the ever shifting challenges in the organizations. In short internship plays a pivotal role in the future sensation& stir of the candidate. This Report is specially meant for the student of BBA (Hons). It is concerned to a brief study of the operation, Function, tasks and services of MEPCO. The effective system at MEPCO was a piece of art and to see it in working process was a treat itself. The billing system at MEPCO is designed to calculate and disseminate bills and to store these bills in the data base and to use them for further use. MEPCO has fine organizational structure and a well define fully working effective system that helps and aids managers to do their job at best. Our knowledge was further enlighten when we had some of the lectures from the seniors managers of MEPCO, they knew quite a lot about the organization and the subject and they left no stone unturned to let us know about that it was a four week study of the billing system and we had the most enjoyable case study of our life. 3|Page Multan electric power company (MEPCO) In preparation of this Report is have tried my best to provide all Possible information about the operation, function and tasks of MEPCO in brief and comprehensive form. It also includes a brief department worked during internship. I have also tried my best to use simple and easy words and language. This report is an anthology of my views pertaining to MEPCO operations & practices. In my view it is a credible and comprehensive compilation of facts. In this report I wrote principally on the issues pertaining to job duties & responsibilities, operations & practices and its future prospects with some recommendations. When the time came to give this information a convenient shape I was confronted with a dilemma of what to put in. One leeway was to include all details with explanation & second preference was to point out some worthy issues with some details. Last solution looked more practicable to me therefore I opt for second solution i.e. to present some relevant feasible details. These details entail information about management philosophy, practices, and functions, strong and weak areas of MEPCO . I take this opportunity to express my gratitude to all who helped me in the preparation of this valuable report. 4|Page Multan electric power company (MEPCO) Acknowledgment All praise to Almighty Allah, the most merciful and compassionate, who give me skills and abilities to complete this report successfully I am grateful to my parents who are always been a source of encouragement for me throughout my life and from start to the end of this report I am thankful to all my staff members so MEPCO Multan division. I found every one very co-operative and helpful for providing me the Theoretical as well as practical knowledge about the function and operation of the MEPCO. I like to express our gratitude to Faqir Ahmed (Head of Technical Dept.MEPCO), Ahsan Kareem (Manager Revenue Branch) and the whole MEPCO Team that helped me by providing all the needed information i needed to complete this report. I express my greatest gratitude to my kindhearted Supervisor Mr. Sohail Chuhan Who was the Person who made me able to write this report, His enthusiasm shows the way forward to me to achieve this success and who kept me in high spirit through his appreciation. He helped me a lot each time I went up to him. 5|Page 6|Page .Multan electric power company (MEPCO) Dedication I dedicate my work to my most respectable parents and teachers whom prayer made me able to have such an opportunity of working in the Government Sectors and get experienced. procedures and behavior of doing work. this period was the real experience e of my life and I saw the setup.Multan electric power company (MEPCO) Executive Executive summary summary “Experience is not what happens to you.” Aldous Huxley I judge my time spent at MEPCO(Finance Department) as being the most productive and exhilarating experience of my corporate life. working process and formal documentation of the MEPCO. Few of the main highlights of my work experience while at Finance Department were: •Good Leadership •Congenial Work Atmosphere •Challenging Tasks Assignment •Employee Empowerment •Proactive Problem Resolution Before the details description of the report I started with the summary of work I done. Internship was started from 29-07-2013 and end on 06-09-2013. function. It was assigned me to visit the MEPCO to view the working environment. The MEPCO is a very big organization with several departments in working in the head office. The human resource department which deals with the internees has assigned me MEPCO 7|Page . The basic purpose of this summary is to given an idea about the contents and efforts made behind the completion of the report to the reader. it is what you do with what happens to you. Multan electric power company (MEPCO) Khanewal road for 6 weeks. I would like to conclude by saying that even though every person will have a different story to tell. technical correspondence between departments and flow of data between departments. 8|Page . MEPCO gives me the opportunity to view. this legacy will be kept and upheld by the future generation of Education University. I have given more than 100% of my efforts to keep up that good work and I am sure that my colleagues have done the same. Here staff gives me opportunity to do practical work. I worked in Finance section of MEPCO and learned about distribution system of MEPCO. how to behave wit customers and about the record keeping. It was a really nice and fruitful experience for my upcoming practical life. I also learned billing system of MEPCO and also how to apply for new connection and what is procedure. I am hopeful that as we pass through the corridors of this great institution into the real world. how to fill the different forms. the common factor that binds us all is the good work done by our predecessors in the Education University. how the books of accounts are prepared. WAPDA. Density of consumption system rose from 278 thousand customers in 1959 to 688 thousand in 1965. was created in 1958 as a SemiAutonomous Body for the purpose of coordinating and giving a unified direction to the 9|Page . planning and executing schemes for irrigation drainage.5 units per capita consumption. The multipurpose dams to Mangla and Tarbela have supplied much needed water supply for winter crops and produced valuable hydel electricity as bi-product to give a broad base to WAPDA’s vast and country wide national grid. prevention of water logging and reclamation of saline land as an autonomous body responsible for integrated development of water and power resources in Pakistan. 1958 WAPDA was created to undertake the task of investigating. The organization was also entrusted with the work of implementing Indus Basin Settlement plan signed between India and Pakistan in 1960 to develop replacement works for management of river water and irrigation system.Multan electric power company (MEPCO) History Water is the most significant source in the country like Pakistan in which an overwhelming majority of the population is dependent on agriculture as a source of living. Pakistan inherited 60 megawatts of power generation capability with the average annual production of 142 million units of electricity for a population of 31. At the time of independence in 1947. and power generation to about 2500 MKWH from 781.5M. The life savings action for Pakistan’s agriculture has been WAPDA’s role in the field of water logging and salinity. the electricity capability went up to 636 MW from 119 in 1959. After 12 years. when WAPDA was created in 1958 the generation capacity had crawled to 119 MW. making water all the more important. the Pakistan Water and Power Development Authority. In September 18. In first five years of its operations by 1958-1963. Besides agriculture produces constitutes the basis of country’s economy and foreign exchange earning s. yielding 4. by the respective Electricity and Irrigation Department of the Provinces.Multan electric power company (MEPCO) development of schemes in Water and Power Sectors. Flood Management. Now TESCO is made in Tribal areas 10 | P a g e . Prevention of Water logging and Reclamation of Water logged and Saline Lands. which were previously being dealt with. Irrigation. Transmission and Distribution to be restructured into twelve (12) public limited companies under the corporate law. Transmission and Distribution of Power. plan and execute schemes for the following fields: Generation. Charter of Duties: The Charter of Duties of WAPDA is to investigate. Water Supply and Drainage. As a part of the restructuring process. the Strategic Plan for restructuring the Pakistan Power Sector (PPS) was approved by the GOP/CCI. Corporatization policy Objectives: In 1992. WAPDA's functions under Water Wing and Power Wing were to be segregated in the following manner: Unified Power wing of WAPDA comprising of Generation. enhanced efficiency levels. promote commercial viability and enhance business value of the assets block of each corporate entity.Multan electric power company (MEPCO) Restructure power sector assets to form autonomous commercial entities through the adoption of prudent business practices. 11 | P a g e . Through commercialization process. Central Power Generation Company Limited (GENCO-2) head quarter at Guddu district Jacobabad Sindh. Northern Power Generation Company Limited (GENCO-3) head quarter at WAPDA House Lahore. Enhance privatization initiatives Accomplishments: Major accomplishments to-date are as follows: Operationalized Pakistan Electric Power Company (PEPCO) as a Private limited management company owned by Government of Pakistan (GOP) to steer. manage and oversee the corporatization/commercialization reforms program. Formed twelve (12) Corporate Entities as following: FOUR Thermal Power Generation Companies (GENCOs). Kout Addu Power station (KAPCO) head quarter at Kout Addu Punjab. cost reduction and profit orientation Promote competition to eventually offer affordable electricity to customers. Southern Generation Power Company Limited (GENCO-1) head quarter at Jamshoro district Dadu near Hyderabad Sindh. 1. 9. FESCO Faisalabad Electric Supply Company. 7. PESCO Peshawar Electric Power Company. 8. TESCO Tribal areas Electric Supply Company 12 | P a g e . Now TESCO is added to these. 4. GEPCO Lahore Electric Supply Company. QESCO Quetta Electric Supply Company. 5. LESCO 2. 3. IESCO Islamabad Electric Supply Company. HESCO Hyderabad Electric Supply Company. MEPCO Multan Electric Power Company. 6.Multan electric power company (MEPCO) Eight (8) Distribution Companies (DISCOs). Gujranwala Electric Power Company. 2000. Obtained Federal Tax Exemptions for the corporate entities for Capital Value Tax. Obtained consent of most of the creditors Investment Plans for Distribution Power System Rehabilitation prepared and finalized by the Distribution companies Financial Restructuring of WAPDA approved by GOP Filed applications by all Power Distribution Companies (DISCOs) for obtaining License from National Electric Power Regulatory Authority (NEPRA). Transfer of WAPDA staff to the respective corporate entities (Manpower Transition Program Phase-I completed).Multan electric power company (MEPCO) One (1) National Transmission & Power Dispatch Company (NTDC) Constituted Board of Directors of the corporate entities with the induction of Directors from the private sector and PEPCO to utilize their experience for formulation of effective corporate policies. Electricity Supply Agreements (ESA). Phase II was also scheduled for completion by June. Executed Legal agreements such as Business Transfer Agreements (BTA). Income tax and Wealth Tax. 13 | P a g e . Bulk Supply Agreements (BSA) and Fuel Supply Agreements (FSA) between WAPDA and corporate entities for autonomous commercial operation. Operation and Development Agreement (ODA). Lahore and controls various training centers detailed below: WAPDA Staff College. Training: General Manager (Training) office is functioning at WAPDA House. Lahore Eight Regional Training Centers (RTCs). The sources of these services are reliable and follow-up is on regular basis. one at each DISCO 14 | P a g e . WAPDA Engineering Academy (Water & Power). Guddu Hydel Training Center.Multan electric power company (MEPCO) Customer Services: WAPDA provides a chain of services to its on-line consumers. Faisalabad Thermal Generation Training Center. You can use the links provided at the top to conveniently receive any type of Customer Services while sitting at your home. Mangla Technical Services Group. Islamabad. Multan electric power company (MEPCO) INTORDUCTION: Multan Electric Power Company Limited is a public limited company incorporated in Pakistan. 1998 and the certificate of commencement of business on 01 July. assets. rights. the principal activity of the company is distribution and supply of electricity to public within defined geographical boundaries. After that the company started the commercial operations. obligations and liabilities of Multan Area electricity Board (MAEB) owned by Pakistan Water and Power Development Authority (WAPDA) and such other assets and liabilities as agreed. The Company got the certificate of incorporation of business on 14th May. The Company also provides the Electricity in rural areas. 1998. The Company was established to take over all the properties. under the project called “Village Electrification and European Commission “Through these projects electricity has been provided in mostly rural areas. 15 | P a g e . Multan electric power company (MEPCO) Mission statement “ To ensure un-interrupted & stable power supply to all our customers with state-of-art customer care to the entire satisfaction of customers. 16 | P a g e . issuance of correct bills in a customer friendly manner and facilitate agriculture and industrial sector catalyzing economic growth of country.” Vision Statement To ensure convenient availability of high quality power in area of responsibility. in order to alleviate the poverty. improve quality of life and make the Industrial and Agriculture Sector competitive in the World Market. Recruitment of new employees and all of its matters itself 17 | P a g e . Management Philosophy: Open door policy for all. A measure of this understanding is progressive mea sure such as establishment of “VILLAGE ELECTRIFICATION & EUROPEON COMMISSION PROJECT” to provide electricity in the whole region.Multan electric power company (MEPCO) OBJECTIVES OF STUDYING THE ORGANIZATION As a part of restructuring process of WAPDA.It is one of the biggest companies among WAPDA. Tackle all problems upfront Merit. Multan Electric Power Company (MEPCO) was formed to take over the functions and operation of Multan AEB. fair play be the hallmark Transparency in all fields Accountability of everyone MEPCO is autonomous body and responsible for salary payments to its employees. the area of MEPCO is increasing day by day now the total Divisions in MEPCO are 67. justice. It is the one of Nine (9) Distribution Companies that has been formed out of WAPDA’s distribution system MEPCO has been working vigorously to meet the challenges to provide the Electricity in the whole MEPCO’s region. They cannot get cash medical allowance.Q) The MEPCO Head office is situated at Khanewal road Multan. The Company’s main offices are also situated in this colony like. 18 | P a g e . which is central place of Multan City.Multan electric power company (MEPCO) MEPCO (H. But in emergency they can get facility they feel according to their need. But staff people can get one of the two facilities i-e cash medical allowance or medical facility. the Chairman WAPDA said that the MEPCO employees can enjoy only one facility. The officers are subjected to get the medical facility. OFFICE OF THE DIRECTOR PLANNING AND DEVELOPMENT OFFICE OF THE MANGER INVENTORY CONTROL. OFFICE OF THE FINANCE DIRECTOR OFFICE OF THE DEPUTY CHIEF AUDITOR. OFFICE OF THE CHIEF EXECUTIVE. The MEPCO Employees complaint to Chairman. Now the Dispensary is providing the first aid facility to the MEPCO Employees and refers the serious case to the WAPDA Hospital. The Chairman WAPDA has announced that WAPDA Hospital (MEPCO) change WAPDA (MEPCO) Dispensary. OFFICE OF THE PROJECT MANGER (CONST) WAPDA HOSPITAL: The company provides the free medical facility to its officers and staff. WAPDA starts the MEPCO Hospital facility in Multan. In view of the different complaints. Multan electric power company (MEPCO) MEPCO Organization chart 19 | P a g e . Multan electric power company (MEPCO) AREA OF OPERATION: MEPCO's area of responsibility covers Multan. Khan. Khanewal. ORGANIZATIONAL STRUCTURE OF MEPCO : It comprises of the following eight (08) distribution Operation Circles as detailed below:Operation Circles 1 Multan Circle 2 D. Sahiwal. Pakpattan. Multan Circle 2.G.Y. Muzaffargarh. R. D. Lodhran. Layyah. Khan Circle 7 Muzaffargarh 8 Bahawalnagar Circle G.G Khan Circle 3 Vehari Circle 4 Bahawalpur Circle 5 Sahiwal Circle 6 R. Bahawalnager. Bahawalpur. Sahiwal Circle Project Construction Circle 8 Divisions 20 | P a g e 6 Divisions / 33 Sub Divisions 3 Divisions /12 Sub Divisions 3 Divisions /13 Sub Divisions 3 Divisions / 17 Sub Divisions 4 Divisions /18 Sub Divisions 3 Divisions /15 Sub Divisions 3 Divisions /16 Sub Divisions 3 Divisions / 13 Sub Divisions 6 Divisions .S.O Circles 1. Khan. Vehari.Y. and Rajanpur. 132/11KV 3. 66 KV HT/LT LINES a) 11KV Feeders b) Length of 11KV Lines c) Length of LT Lines 821 Nos. 21 | P a g e .132 KV. 111 74 Nos. 132/66KV. Consumer Grid (132/11KV=04. LENGTH OF TRANSMISSION LINES 1. 44 Nos.309 KM 32183. 53353. 220/132/11KV=01) TOTAL POWER TRANSFORMERS 1. 66/11KV 3. 2. 127 Nos. 184 2858MVA 07 Nos.Multan electric power company (MEPCO) Grid Stations: 1.324 KM 2809 KM 1479 KM d) Transformers (Different Capacity) 89074 Nos. 30 Nos. 132/11KV 2. 2. 66/11KV Total Total installed Capacity 13 Nos. Multan electric power company (MEPCO) NO of Employees in MEPCO UPTO 06/2013 EXISTING STRENGTH S.S) 04 LS-I 05 LS-II 06 SSO-I 07 SSO-II 08 Foreman 09 LFM-I (Foreman) 10 LFM-II (Foreman) 11 Commercial Assistant 12 LM-I (Lineman) 13 LM-II (Lineman) 14 ALM (Asstt: Lineman) 15 Meter Reader 16 Bill Distributor 17 Chowkidar / NQ 18 Clerk all types 19 Other Staff Grand Total Distribution 152 279 27 435 398 0 0 2 31 36 512 1556 1445 3378 1606 570 726 969 2036 14158 GSO 9 38 0 19 6 107 212 19 0 1 0 65 90 29 0 0 34 23 1283 1935 Total 161 317 27 454 404 107 212 21 31 37 512 1621 1535 3407 1606 570 760 992 3319 16093 22 | P a g e .# Category 01 Officers Gr-18 & above 02 Assist: Managers 03 Assist: Managers (C. Multan electric power company (MEPCO) Category wise No of Consumers Up to 31/05/2013 No. of Consumers CATEGORIES GOVT.: Temp E1 (2) TOTAL COMMERCIAL Industrial B-1 Industrial B-1 (08) Industrial B-2 Industrial B-2 (11) Industrial B-2 (TOD) Ind: 11/33 KV B-3 B-3 (TOD) Ind: 66/132 KV B-4 B-4 (TOD) Ind: Temp E-2 (1) 13344 1 13345 4568 12 4580 958 0 130 2 1 4 4 0 1 1 PRIVATE 3118189 668 3118857 363192 713 363905 31498 30 4826 5 9 28 165 0 6 43 TOTAL 3131533 669 3132202 367760 725 368485 32456 30 4956 7 10 32 169 0 7 44 23 | P a g e . E1 (1) TOTAL DOMESTIC Commercial A-2 Comm. Domestic A-1 Domestic Temp. Generation (J) TOTAL 1101 70 156 28 0 1 255 2998 153 0 3151 946 8 4 0 23390 36610 22 99 5 1 0 127 33350 19945 35 53330 161 91 0 4 3573085 37711 92 255 33 1 1 382 36348 20098 35 56481 1107 99 4 4 3596475 24 | P a g e . H2) Rly: Traction (1) Co.Multan electric power company (MEPCO) TOTAL INDUSTRIAL Bulk Supply C-1 (A) Bulk Supply C-1 (B) Bulk Supply C-2 (A) Bulk Supply C-2 (C) Bulk Temp: E-2 (3) TOTAL BULK SUPPLY Agri: SCARP Agri: D-2 (1) Two Part Agri: D-2 (2) Two Part TOTAL AGRICULTURE Public Lighting (G1. G2) Res: Colonies (H1. Multan electric power company (MEPCO) 25 | P a g e . 160 4.389 EXPENSES (Millions) Cost of Electricity Operating Expenses (incl.446.180 46.864 43.945.120 696.962.313.Multan electric power company (MEPCO) FINANCIAL OVERVIEW OF MEPCO FINANCIAL RESULTS DURING 2012-2013 REVENUE (Millions) Sale of Electricity Rental & Service Income Amortization of Deferred Credit Other Income Total Revenue 41.676.312 (6309.006.979 703. depreciation) Financial Charges Total Expenses plus Tax Loss for the year 40.569) 26 | P a g e .934 163.421 1. Multan electric power company (MEPCO) FINANCIAL POSITION AS ON 30.2013 ASSETS (Million) Tangible Fixed Assets Long Term Advances / deposits Current Assts Total Assets 30.660 46.124.350 17.557.06.549.340 15.350 27 | P a g e . S & T offices (these are 4 offices a-Muzaffar garh b-Multan c-D.D GSC Finance Director (F.Multan electric power company (MEPCO) ACCOUNTING UNITS: MEPCO has 74 accounting units which are as follows.D Construction Manager (Material & Management) Manager T & S (Technical services) S. 28 Deputy manager operations/ Exien office 28 customer services offices (Revenue office) Manager MIS Manager P.G Khan c-Sahiwal d-Bahawalpur) P.D) Manager STG ( Station Transmission Grid station) 28 | P a g e .G Khan d-Sahiwal) Deputy Manager P & I ( Protection & Instruments ) Deputy Manager Civil Regional Stores (these are 4 offices a-Multan b-D. MR. Liaqat Ali (AMCA) PENSION SECTION: Mr.Aftab Fazal (AMCA) RECEIVEABLE & PAYABLE SECTION: (AMCA) COMPILATION SECTION: Mr. So Finance management is very important in any firm. Finance Department has the following structure. Mr. Jahangir Bhutta (MF.CPC) 6. In MEPCO the Finance department is doing finance management well. Ch. Because of its highly qualified and trained officers and hard working team this de partment’s performance is out of mark. Mr. Mr. Najeeb Afzal (AMCA) ESTABLISHMENT SECTION: Mr.CPC) POST & PRE AUDIT SECTION: Mr. Khawaja Habib-ur-Rahman (DMCA) 5. (AMCA) 29 | P a g e .Ashraf (DMCA) 4. Mr. Mian Ansaar Mehmood (MCA) 3. Iqbal Munawar (AMCA) ASSETS SECTION: Mr.Multan electric power company (MEPCO) FINANCE DEPARTMENT Finance is like the running blood in the organization. Jahangir Bhutta (Acting MF. 1.Rao Tasa (AMCA) BUDGETING SECTION: Mr. Mr. Irfan-ul-llah (DMCA STG) MAIN OFFICES OF FINANCE DEPARTMENT BANKING SECTION: Mr. Mushtaq Hussian Bukhari (FD) 2. RCO fees. UBL. These are ABL.Multan electric power company (MEPCO) Banking section This section deal with the different banks those are authorized banks of the company under the area covered by the company. Revenue collection from the banks and distribution of cash to accounting units is done through banking section. They are directed to deposit collections in MRA in the banks associated with MEPCO. BOP. Banking has four main accounts in different banks. Askari. 1st Women bank CAPITAL COST ACCOUNT: The cost of meter that is erected for customer is treated as capital cost and the amount that is received from customer after payment of Demand notice is transferred to capital cost account. PPCBL. security deposits. This section also deals with the reconciliation and related matters with banks. MCB. HBL. NBP. GPO. This section monitor the collections of electricity bills. and other receipt as well as remittance of the such collection in to main branch of the company at Multan. If any bank fails to remit the company’s fund in time. 30 | P a g e . These are Main Revenue account Retention account Capital cost account Security Deposit accounts MAIN REVENUE ACCOUNT: Main revenue account deals with the receipts of Revenues from all the MEPCO offices. ask for such omission and charged interest for late remitted of company’s fund. 31 | P a g e .C. Security Amount The capital cost amount goes to Capital cost account and the remaining in the security account. Budget making is very effective tool for the management to run its operations smoothly. After approval of the budget the funds are issued to each office according to their budget requirement. The only bank deal with is ABL. Deposit work account 2. Payment of salaries to employees also done through this Account. This section also monitors the variance of the budget.Multan electric power company (MEPCO) RETENTION ACCOUNT: This account has two main categories. BUDGET SECTION: Budget means the expected Revenues and Expenses for specific period. SECURITY DEPOSIT ACCOUNT: When any customer pays the demand notice for the connection of electricity it consists of two costs 1. 1. This section deals with preparation of the budget of each office / division of the company. Capital Cost 2. General Account Funds that are given to MNA’s are transferred to DEPOSIT WORK account. These funds are used for the new electrification in rural areas Any payment to Supplier for purchase of any kind of material is done through GENERAL account. This payment bears the procedure of L. under the administrative control of Deputy Chief Auditor. The internal audit division is also responsible for the audit of the company. This department is working. under the administrative control of Deputy Chief Auditor. It deals with CAPITAL BUDGET which holds the following activities. Loans are also arranged by this section. MEPCO Multan. This department is working. MEPCO Multan. The internal audit division is also responsible for 32 | P a g e .Multan electric power company (MEPCO) This section is so much important because of its working scope. These sections are Transport Audit Civil division audit System Transmission Grid INTERNAL AUDIT DIVISION: The company has to setup of the internal audit of the company’s revenue / financial activities. Development Of Power Energy Lost Reduction STG Developments This section makes the Unit rates and send to the National Electricity power regulatory Authority (NEPRA) for approval. The internal audit division conduct the revenue audit of the company’s revenue accounts continuously throughout the year. The internal audit division conduct the revenue audit of the company’s revenu e accounts continuously throughout the year. POST & PRE AUDIT SECTION: The company has to setup of the internal audit of the company’s revenue / financial activities. It is divided into the different basic sections which deal with their relevant department billings & payments. LOCAL AUDIT PARTIES: The local audit parties audit the electricity revenue accounts maintained in revenue office concerned on bi-annual basis throughout the year. of the company. The audit of the accounts of the company’s formation is conduct through two types of audit parties. These office parties. The result of such audit is submitted to the company for taking further necessary / remedial action. 33 | P a g e . AUDIT PARTIES: These parties conduct the financial audit of the company’s formation on yearly basis in addition to this. The company itself lays down the scope of the special audit. pointed out the cases of less billing. And after discussion with revenue office and Dy. It is also the function of internal audit division to verify the financial rules and order that these are accordingly followed. during the course of audit. these parties also conduct the capital receipt audit.Manager (OP) or in some cases with Manager (OP). In addition to above regular audits the internal audit division also carry out the special audit of the accounts of certain formation under the specific order of the Chief Executive. These parties audit the accounts maintained by the Sub-Division/Division/Circle level and also conduct the audit of the MANGER Finance and other MANGER etc. omission and commission through audit notes. These parties are rotated in all the revenue offices of the company. to conduct the audit. There are 21 local audit parties to conduct the revenue audit of the revenue offices headed by the assistant audit officer and 4 to 6 audit assistants.Multan electric power company (MEPCO) the audit of the company. the audit notes are accepted and debited to respective consumer for recovery. This party also conducts the audit of the Chief Executive office to check its accounts. COMPILATION SECTION: This section deals with the compilation of the accounts of the company. The accountant received from different division is posted in ledger accounts according to their heads for ultimate preparation of final accounts. The stock verifiers visit the specific formation assigned to them for stock verification. balance sheet. cash flow statement and detail of accounts of different heads. This section maintains different books of accounts. At the end of each month they prepare consolidated trial balance and at the end of financial year this diction prepare the profit and loss accounts. For this purpose Board of Director has appointed the External Audit Party. to conduct the statutory or external audit of the company. The Deputy Chief Auditor deputes its work verifiers for this purpose. a Chartered Accountant must audit the financial statements of a Public Limited Company. The operation division and other division of the company submit their monthly accounts to this office with relevant records. 34 | P a g e . EXTERNAL AUDIT: According to company’s ordinance 1984. They physically check the assets and reconcile with stock register and point out discrepancy regarding surplus of shortage. Board of Director has appointed M/S RIAZ AHMED & COMPANY Chartered Accountants.Multan electric power company (MEPCO) STOCK VERIFICATION: The company has maintained its schedule for verification of its assets and stock on annual bases. But the ordinary allowance is given for small cities. And Medical facility in shape of medical treatment from approved hospitals.).Multan electric power company (MEPCO) ESTABLISHMENT: Establishment sections deals with the staff payments like Travelling allowance. Deduction under this head is accumulated in GLI Account. Peshawar etc. Islamabad. Cash Medical allowance is given in monthly salary (i-e 425 Rs. TRAVELLING ALLOWNCE: When an employee goes to another city on behalf of MEPCO. Salary. Faisalabad. Travelling allowance is given in two ways Special day allowance Ordinary day allowance Special day allowance is given when employee goes to the big city which is mentioned by MEPCO like Lahore. it gives the travelling allowance to him. GROUP LIFE INSURANCE: It is the part of Government policy to deduct the Group life Insurance from salary of employees. From scale 1-16 one from each facility can be taken but from scale 17-22 only facility available is Medical Facility. All these funds are received by employees after approval of this section. WAPDA welfare fund. Group life insurance and Marriage funds etc. Medical allowance. Special daily allowance rate is higher than Ordinary daily allowance. These are Cash medical allowance and Medical Facility. Karachi. MEDICAL ALOWANCE: Two options are available to employees in respect of Medical allowance. 35 | P a g e . Super annuation Pension Retiring Pension Compensation Pension @2% @ 10 % @ 3. Depreciation is no charged on the assets disposed during the year but full year depreciation is charged on any asset purchase during the year. Company charges depreciation on its assets by using the following rates. Following are the types of Pension. First he has completed the service of 25 years and second is he reaches the age of 60 which is the maximum limit for service. PENSION: Pension is the benefit for the employee after retirement and is given by the employer at monthly basis. Buildings Office Equipment Distribution Equipment Other plant and equipment Vehicles ACCOUNTING POLICY FOR DEPERECIATION: Depreciation is charged by using straight-line method so as to depreciate the depreciable amount of an asset over its useful life.5 % @ 10 % @ 10 % 36 | P a g e .Multan electric power company (MEPCO) ASSET SECTION: This section is established to deal with all the assets of the company. There are two conditions of service for which the employee is eligible for pension. At that age the person is must be retired. It is the pension taken by the employee when he is completed the service which is important to qualify for taking pension.Multan electric power company (MEPCO) Family Pension Invalid Pension Graduity 1 Superannuation Pension It is the pension offered by the government at the age of 60 years. example is eye sight is week or any other cause. 2 Family Pension It is offered by the government in the case when the employee is dead due to the natural cause during service or after retirement. 3 Invalidation Pension It is the pension offered by the government when the employee is not remains medical fit due to the some medical reasons. At the filing the case of pension. 4 Retiring Pension. the documents required are Pension Form Computerized Id card Photos of 25 years Service Book 37 | P a g e . it has been verified that there is no enquiry has been sitting against him for that reason he has been suspended from his job. FIA Certificate In it. In that book his whole service record has been kept. No Enquiry Certificate In it. No Demand Certificate It is the certificate in which employee give the surety that he has not ever take the loans or any pension funds ever before No Audit Para Certificate In it. 38 | P a g e . his promotion. it has been verified that any audit team has write any comments on his service book related to his service. Last Pay Certificate (LPC) The LPC is the certificate issued by the finance director in which his last basic pay is mentioned which is used in the further making of pension. his leaves all the records are kept in that book. Retirement Order The retirement order has been submitted by the employee at the age of 60years by the approval of chief. it is verified that in the whole service he is never caught red handed by the anticorruption or FIA for doing the misuse of his authorities.Multan electric power company (MEPCO) The service book is the book which is submitted by the employee at the time of appointment. His pay scale increment every year. there is a calculation of the whole service period and verified by the Finance director. List of Family Members In it. list of detail family members including the wife. In that there is also mentioned how much his approved vocation has been left. And casual leaves are 25 days these are renew every year EOL Certificate (Extra Ordinary Leave Certificate) In it.Multan electric power company (MEPCO) Entire Service Certificate (Consolidate Certificate) In it. his widow/ orphan has take the pension by fulfilling the following conditions Son is less than 21 years of age.marriage certificate after the death of his husband and also the non separation certificate in case of the employees who has not married but died their parents can take the pension up to the 10years 39 | P a g e . She has submitted his unmarried certificate Widow is also submitted the non. their ages. Pension Rules: In it following permission has been given In case of death of employee. it is verified that from his service book he has not taken any extra ordinary leave for any purpose so that that period has been deducted from his service period. In case of missing or incomplete or any recovery taken from employee no pension has been given. The total earned leaves are 48 days these are adding every year in case any leave is left. Daughter is unmarried. children married/ unmarried. The above mentioned documents are necessary for an employee to submit them when he is going to take his pension. Then his pension has been calculated by the following Gross Pension = Basic pay*70/100* service/30 = 10000* 70/100 * 25/ 30 = Rs.5833/This Pension is divided into two forms Accumulations = GP * 35% * 12 * age factor = 5833 *35% *12 * 12.2/- Monthly Pension = 5833 * 65% = 3791 Increase 1-07-2005 = 3791+ 3791* 10% = 4170 Increase 1-07-2007 = 4170 + 4170*15% = 4795 So the monthly pension is Rs.5 years salary.at the retirement time. Calculation of Pension: Let the basic pay of the employee is Rs. After the service of 25 years he is eligible to take his pension In case of death.10000/.Multan electric power company (MEPCO) Service above the 6 months consider next year and below the period should be ignoring in calculation of service years. service is less than 5 years then there is no pension If it is in between the 6-10 years he will get the pension of 1.3791 = 303097.4795/- 40 | P a g e . preparing your income tax returns or just paying utility bill. “scarifies and benefit” . Accounting is also called the language of business because it is widely used in describing all types of business activities. Modern system of accounting is based on the principle of double entry book keeping system. Whether you are managing a business.The T accounts is a helpful place to begin the study of double entry system 41 | P a g e . DOUBLE ENTRY BOOK KEEPING SYSTEM Double entry system based on the principle of duality which means that all events of economic importance have too aspects (i-e “effort and rewards”. making investment. Actually. Every investor.Multan electric power company (MEPCO) FUNCTION OF THE FINANCE DEPARTMENT MEPCO ACCOUNTING SYSTEM: ACCOUNTING: Accounting is simply “the means” by which we measure and describe the result of economic activities. you are working with accounting concepts. “resource and uses” that off set or balance each other in the double entry system each transaction must be recorded twice in such a way that total amount of debit and credit must equalizes each other . manager and business decision makers need a clear understanding of accounting terms and concept. nearly everyone practices “accounting” in form or another on almost daily basis. The “Information Technology Cell” of MEPCO Computer Centre has developed following two “software packages” for computerization of accounting procedure prevailing in MEPCO. classify and summarize the accounting information is termed as “Accounting Cycle”.Multan electric power company (MEPCO) THE USE OF COMPUTER IN ACCOUNTING SYSTEM: The sequence of accounting procedures used to record. The terms “Cycle” indicates that these procedures must be repeated cont inuously to prepare new up-to-date financial statements at reasonable intervals. summarizing the effects of these transactions. The “Accounting Cycle” begins with the initial recording of business transactions and concludes with the preparation of formal financial statements. Software for Headquarter CASH BOOK: Two types of “Cash Book” are being used by the MEPCO. VOUCHERS: 42 | P a g e . The cash book is required to be selected for each bank account. Imprest Cash Book Miscellaneous Receipt Cash Book A separate bank is used for each type of “Cash Book”. Software for Elementary Accounting Units. Cash Vouchers: All the vouchers pertaining to cash are called cash vouchers.Multan electric power company (MEPCO) The documents in supports of each transaction are called a voucher. Journal Vouchers: All other transaction are recorded on “journal Vouchers” e. Each activity/ transaction is to be recorded on the voucher. The vouchers regarding cash receipts are called cash receipts vouchers while the vouchers regarding the cash payments are called cash payment vouchers Bank Vouchers: All the transactions relating to banks are recorded on the vouchers are called as bank vouchers. depreciation of fixed assets provision for bad debts 43 | P a g e . regarding rectification of errors.g. miscellaneous classification. The vouchers regarding the receipts through banks are called bank receipt vouchers & the vouchers regarding the payments through banks are called bank payment Vouchers. There are four types of vouchers. for I. Note for S. Three digits transaction type/ code is required to be entered on the voucher at the first stage. The third digit indicates the transaction type of the voucher i-e the detail of the accounts to be affected. The second digit represents the type of voucher and is coded as under. for Payment Voucher. It will be the next number falling in the serial. “1” or “2” “3” or “4” “5” or “6” “7” “8” for Receipt Voucher.Multan electric power company (MEPCO) PREPARATION OF VOUCHERS: The vouchers are to be prepared by the accounting staff of an accounting unit.O. In case of Payment Voucher the same date will be considered as date of issue of Cheque. The information is recoded in the following ways.T and Cr.S Cheques. “2” for cash and “3” for direct. Voucher number is to be left blank and will be automatically generated by the computer. cash entry or direct entry. for Journal Voucher. “1” is used for bank. 44 | P a g e . The First digit indicates whether it is a bank entry. Enter the date on which the voucher is being prepared. First two digits represent the main account head.O. In case of Journal Vouchers some accounts are debited by crediting some other accounts for each transaction. /T. The amount may either be written in rounded form or it may be written with two decimals points. As per accounting procedure two accounts are affected at the same time as a result of each transaction. the vouchers are presented to the P.Multan electric power company (MEPCO) Six digits account head code is required to be entered. As the process of preparation of voucher is completed as per above procedure. next two digits represent the sub account head and remaining two digits represent the detailed account head. Operator for entry purpose 45 | P a g e .D. Account head code as well as amount debited/ credited in respect of each account must be written in the respective columns.T.C. In the next column the amount of voucher is narrated in words. /P. Enter the amount to be credited in case of receipt voucher and debited in case of payment voucher because debit in receipt voucher and credit in payment voucher is understood. Name of bank as well as account number of concerned bank is entered in the respective column. Total of amounts written in the debit column must be equal to the amount written in the credit column. Enter the title of account to which credit is raised in case of receipt voucher or debit is raised in case of payment voucher. Enter the Cheque/D. number along with date in case of bank vouchers. 46 | P a g e . Inter office transaction comprises of following major components Debit advice received & issued Credit advice received & issued S.Multan electric power company (MEPCO) INTER OFFICE TRANSACTION(IOT): Debit & credit advises received from other as well as issued to other offices as well as issued to other is called as inter office transaction. Phone Numbers and Fax Numbers are also entered at the time of implementation and will be used whenever required.S cheques received & issued SUPPLIERS INFORMATION: The information regarding all expected suppliers who are dealing with that proper Accounting Unit such as Name. Address. Multan electric power company (MEPCO) Future Projects PROJECTS ANNOUNCED BY THE PRESIDENT OF PAKISTAN •Diamer Basha Dam •Kurram Tangi Dam Project •Munda Dam Project •Akhori Dam Project FEASIBILITY STUDY IN HAND (HYDROPOWER PROJECT) •Golen Gol •Dasu •Bunji •Keyal Khwar •Lawi •Palas Valley (Chor Nullah) •Spat Gah •Basho •Phandar •Jabban •Thakot •Patan 47 | P a g e . Multan electric power company (MEPCO) •Tarbela •LBOD STAGE-1 BADIN AREA DRAINAGE SYSTEM ONGOING PROJECTS UNDER CONSTRUCTION DAMS •Gomal Zam Dam Project •Mirani Dam Project •Mangla Dam Raising Project •Sabakzai Dam Project •Satpara Dam Project UNDER CONSTRUCTION CANALS •Rainee Canal Project •Kachhi Canal Project •Greater Thal Canal Project UNDER CONSTRUCTION DRAINAGE PROJECTS •RBOD-I •RBOD-III UNDER CONSTRUCTION HYDROPOWER PROJECTS •Allai Khwar Hydropower Project •Khan Khwar Hydropower Project 48 | P a g e . Strength •The MEPCO top management is the combination of both experience and youngenergetic professionals which are proving to be the real strength of MEPCO. •The MEPCO has efficient internal audit department. •MEPCO website provides every information about MEPCO to the customers andinvestors. which keep check and balance.Multan electric power company (MEPCO) It is the moral and professional duty of the directors. •MEPCO has equipped with the latest technology. •The MEPCO employees are locally so. managers and executives toovercome the weakness and convert them into strengths. the turnover rate is low. 49 | P a g e . and get maximum benefits andopportunity from the prevailing resources. •MEPCO has good relation with different departments. •Telecom and Media revolution •Dependency on suppliers of power generation equipment. •There is still improvement of technology in the MEPCO like in computers.Multan electric power company (MEPCO) •The MEPCO has experienced of strategic apex and managerial skilled staff. •The MEPCO has maintained better relationship in the market which helps theMEPCO to increase the customers. •Full support from Federal Government Weaknesses •The administrative cost of the company is very high due to which the profitabilityof the company decreases. Opportunities •The MEPCO is situated in the region where the customers are large in quantityand other necessary related product is easily available in the market. 50 | P a g e . there is a big opportunity to get moreshare. •The strategies of MEPCO are very strong which help them to get advantage sover the competitors. •The extension plan of divisions by the MEPCO is very good to capture themarket. •There customer service are not up to mark they have to improve the customer services to satisfy the customers •There divisions are not well furnished they have the need to improve them. •Buyers of MEPCO services are easily available in the local market. •There is no competitor in the local market. Threats •One major threat to the MEPCO is increasing number of customers day by day. •Curtailment of budget. •There is always a threat the government may impose some duties on the MEPCO. •Withdrawal of support from suppliers. •Due to fluctuation occur in the supply is permanent threat to the MEPCO. •Obsolescence of strategic equipment •There is not a long list of suppliers in power sector and the suppliers enjoy monopoly to some extent and they can charge higher and delay supplies as there is long waiting lists for equipment supplies 51 | P a g e .Multan electric power company (MEPCO) •Research and development in power generation equipment •Natural resources to increase water resources and cheaper power •There are rapid changes in technology of power generation and to coup with it ministry will have to be planning for the future plans keeping in mind the changes •New power projects have the bargaining power for higher prices keeping in view the high demand and supply gap in power sector. •Another threat to the MEPCO is change in day by day technology. •Sometime the employee don’t cooperate with customer they must have needed to cooperate with customers to create good relationship with them. they have need to follow proper dress court •I have observed that there is need of safety department or some safety precautionfor employees of MEPCO 52 | P a g e . •Sometime MEPCO employee create tens environment in the MEPCO due to there non cooperative behavior.Multan electric power company (MEPCO) Limitations •No proper arrangement for electricity they have dames and generators but they are not work according to the requirement of the MEPCO. •I have also observe that there is no proper dress court of employee in the divisions so. •They have provided me knowledge about MEPCO but not according to therequirement of internship due to much work load on the employees Observation •I have observers that there is need of improvement in the MEPCO especially the building of the MEPCO is not according to the requirement of MEPCO. •Management should try create more understanding between different departments to increase their productivity. 53 | P a g e . •All the duties and responsibilities of the employees and thee workers should be clearly defined.Multan electric power company (MEPCO) Suggestions The following are some suggestions about the MEPCO . •The management should recruit right person for right job having proper knowledge related to the job. •The computer technology should also be used in decision making as well as instoring and feeding the data. •The management should here multi skilled workers to get economy of scales. •There should be decentralization in decision making. •The top management should give the authority and flexibility t o every manager to make decisions according to the situation at any time and in the absence of the top manager. •A proper training should be given to the employees and he workers to enhance their skills to increase their productivity and utility of the MEPCO. justice. MEPCO has open door policy for all tackle all problems upfront Merit.Multan electric power company (MEPCO) Conclusion I got a lot of experience in MEPCO. fair play be the hallmark Transparency in all fields Accountability of everyone. I have noticed that they are getting the benefits by minimizing different costs which earlier they were paying due to lack of technology of computer. The MEPCO has latest technology for its services and they are serving the local market very well. 54 | P a g e . During my internship I come to know that the different units are working under one umbrella. com 55 | P a g e .Multan electric power company (MEPCO) REFRENCES: Personal Observation www.com.mepco. Admin etc www.google/images.pk Finance department section Accounts officers. Multan electric power company (MEPCO) Annexure 56 | P a g e . Multan electric power company (MEPCO) 57 | P a g e .