CHAPTER ONE: Introduction of internship

It is the requirement for M.COM degree to do an internship for 8 weeks in any

organization and it is also an opportunity for me to get the practical knowledge from that

organization. For this purpose I visited different organizations in Gujranwala and I found

that GEPCO (Gujranwala electric power company Limited) is the only company in

Gujranwala, which is different and unique from the other organization, and there is not

any competitor of GEPCO in Gujranwala. Hence I spent not only eight weeks in GEPCO

(Gujranwala electric power company Limited) but also I am the employee of that

Organization.

I worked in some departments of GEPCO during my internship period. The main

purpose of internship is to develop the management skill. Such skill not only created by

theoretical knowledge but also a practical experience is also needed. Although the eight

weeks internship program has not fully developed these abilities but it has at least given

me know-how about market. It enabled me to see the relevance and applicability of

various tools and theories of management in market. The main advantage to me is that I

am the job holder of GEPCO. This training has also given me awareness of the various

career opportunities available in the market. The work that I had done there is described

in detail in this report.

1.1. Background of the Study

In order to complete the requirement of M.COM I had to make internship in any

organization but I have some interest in electricity sector of Pakistan, so this internship

report is about GEPCO (Gujranwala electric power company Limited). The Pakistan

Electric Power Company (Private) Limited (PEPCO) has been entrusted the task of

managing the transition of WAPDA from a bureaucratic structure to a corporate,

commercially viable and productive entity. It is a mammoth task and progress in the

initial months was rather slow, but one should keep in mind that responsibility is

enormous and transition is a long drawn process.

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Before going into further details of the restructuring programme, it is necessary to

understand the shift in the GoP policy. The GoP, in line with its Strategic Plan of 1992

approved by the cabinet committee, had decided to restructure the entire power sector in

the country.

1.2. Purpose of studies

There are many organizations in the locality of Gujranwala city and in the nearby cities

as Lahore and Sialkot etc. There are the following purpose for joining GEPCO;

I want to know about the factors which are reason of poor

performance of the public organizations.

I want to analyze those factors that cause the poor performance of

public sectors and to know how the performance of public sector can

be improved.

This public sector organization having the position of monopoly but

still was in loss and also its customers were having a lot of complains

against its services.

Another purpose is that any person’s working in a public sector

organization is considered as a good experience.

1.3. Scope of The study

An internee cannot cover every aspect of an organization in the limited time available to

him/her. Therefore, one needs to limit to certain areas. Therefore he/she should mention

the main focus of work. In this report I would like to mention here that I have learnt the

general functions in the GEPCO in the organization where I have completed my

internship. I have learnt to work as a Junior Account Officer.

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1.4. Objective of the Study

As mentioned earlier that to do internship in an organization is necessary for M.COM

completion and it is also important for the application of theoretical knowledge to

practical experience. As for as i am concerned I also have the same objectives for doing

internship. As I have chosen the Electricity sector because I was interested in to learn the

working of Electricity sector.

Following list of program objectives has been extensively reported in literature

discussing internship programs. The College of Business subscribes to the following

objectives but does not expect each student to achieve every objective. Many of the

program objectives will only be important to a few students, but each student should

achieve a substantial portion of those listed:

Internships provide students the opportunity to test their interest in a particular

career before permanent commitments are made.

Internship students will develop skills in the application of theory to practical

work situations.

Internships provide students the opportunity to test their aptitude for a particular

career before permanent commitments are made.

Internship students develop skills and techniques directly applicable to their

careers.

Internships aid students in adjusting from college to full-time employment.

Internships provide students the opportunity to develop attitudes conducive to

effective interpersonal relationships.

Internships increase a student's sense of responsibility.

Internships provide students with an in-depth knowledge of the formal functional

activities of a participating organization.

Internship programs enhance advancement possibilities of graduates.

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1.5. Methodology

While collecting data and other relevant information, internees use certain methods.

These include reading some background material, developing questionnaires,

interviewing people, doing surveys, collecting data, reviewing the answers from the

Questionnaires, and presenting findings, and recommendations etc. This section should

not be very lengthy. An internee can describe it in a few lines step by step. An internee

has to give separate details of survey methodology if he/she has conducted a survey in the

study. I have used learning methods there, these are observation, background materials,

Reports review, manuals, and written formats and also I have learnt by asking questions

that arise in my mind.

1.6. Organization

I have chosen the electricity sector to accomplish my internship and the organization in

which I have spent 8 weeks to complete my internship is GEPCO (Gujranwala electric

power company Limited). Gujranwala Electric Power Company was incorporated on 25

April 1998 and obtained certificate for commencement of business on 05 June 1998. It

encompassed the areas of existing Districts of Gujranwala, Hafizabad, Sialkot, Narowal,

Gujrat and Mandi Bahauddin. Management and Administration is entrusted to a Board of

Directors. We have about 20, 09,052 connections, Average monthly collection for the

year 2003-04 is more than 2 billion.

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1.7. Summary

To summarize this chapter it can be said that to prepare internship report is helpful for

practical learning of knowledge which we gain in educational institutions. As I have

mentioned in this chapter that I have chosen GEPCO for the completion of my internship

because of my interest in the electricity sector, and it has proven helpful for me to

understand how general electricity problems is done. This internship also made me

disciplined person. I have learned there through observations, GEPCO manuals, and also

by asking questions from the staff of the GEPCO.

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CHAPTER TWO: Organization

This chapter provides information about the Organization in which internship has been

done. It also states history of the organization. it elaborates the working of overall

respective sector in Pakistan. It also explains the role of the Organization in Pakistan.

What services are being offered by this organization and how much this organization is

contributing to the development of the country through its variety of products? What

facilities the organization is providing in increasing employment of the country.

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VISION STATEMENT

Achieve and maintain the highest degree of efficiency,

reliability and responsiveness as a public service organization

for variety of customers.

Public and company workers’ safety shall be high on our

priority.

Retaining and growing our business, staff and customer base

will be of primary importance.

Developing innovative business relationships both inside and

outside our local distribution area will be keys to our success.

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MISSION STATEMENT

“As the leading electricity distributing company, strive to provide

un-interrupted electric supply and quality service to all customers at

the minimum possible cost”.

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GOALS

Smooth and consistent flow/supply of electricity.

Prompt restoration of disrupted electricity supply.

Accurate and timely meter reading and billing.

Provision of electricity in minimum time.

Open door policy to facilitate our customers.

Special concession for quick and timely payment of bill.

Availability of stores to deal with emergencies.

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Feedback through Customer Service Centers.

Create awareness amongst employees for adopting safety measures while on lines

Energy saving message dissemination.

Creating positive image of GEPCO.

Take steps for welfare of company employees

ORGANIZATIONAL HIERARCHY OF GEPCO.

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CORPORATE PROFILE

The Authority comprises of a chairman and three members working through a Secretary.

Following are the name and the pictures of the chairman and the three members.

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2.1. Overall Respective Sector in Pakistan

WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a

Semi-Autonomous Body for the purpose of coordinating and giving a unified direction to the

development of schemes in Water and Power Sectors, which were previously being dealt

with, by the respective Electricity and Irrigation Department of the Provinces. The Charter of

Duties of WAPDA is to investigate, plan and execute schemes for the following fields:

Generation, Transmission and Distribution of Power.

Irrigation, Water Supply and Drainage.

Prevention of Water logging and Reclamation of Waterlogged and Saline Lands.

Flood Management.

Inland Navigation.

When WAPDA took over in 1958, the settlement with India over the water usage of the

Indus Basin rivers was being negotiated. After the signing of the Indus Waters Treaty in

September, 1960, a colossal, task was entrusted to WAPDA to construct the gigantic

Indus Basin Project comprising works of two large dams at Mangla and Tarbela, five

barrages and eight inter-river link canals in a short period of ten years which was a great

achievement of WAPDA.

Under its charter of duty WAPDA has planned and investigated schemes for

exploitation of surface water resources, and has constructed medium size dams at Tanda,

Khanpur and Hub.

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Two large irrigation projects in NWFP and Balochistan have been taken up to extend

irrigation facilities to 0.57 million and 0.46 million acres respectively. The stages I & II

of the Chashma Right Bank Canal Project in NWFP have been completed which form

about 50% of the entire project. In the third stage, this canal is being extended into

Punjab up to Dera Ghazi Khan. The completed works under first two stages have already

brought a change in the living standards of inhabitants of D. I. Khan and the third stage

promises prosperity to the farmers of D. G. Khan when completed by the year 2000.

WAPDA Water Wing has brought about significant development in the Irrigation and

Agriculture sectors. It has planned and executed 56 Drainage Projects to reclaim or

improve crop cultivation conditions in 16.46 million acres of waterlogged lands. Of these

projects, 28 are in Punjab, 18 in Sindh, 8 in NWFP and 2 in Balochistan. In this major

effort, more than 15,000 tube wells were drilled and 11,000 km of surface and 6,500 km

of pipe drains were constructed to enhance drainage in the high groundwater table areas.

These projects have helped to increase the irrigated areas by about 14 million acres and

have enhanced cropping intensity from 70 to more than 110 percent.

WAPDA GRID STATIONS SYSTEM

The national grid, connecting hydel generation in the north and thermal generation in mid

country and the south, consists of a large net work of transmission lines and grid stations of

voltage levels from 33kV to 500kVto transmit Power to load centers throughout the country to

serve over ten (10) million consumers of various categories. National Transmission & Dispatch

Company (NTDC) carries out design, maintenance and operation of a network of secondary

transmission lines and grid station throughout the country. This system consists of 44030 Circuit

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km. of transmission lines (including 500kV, 220kV 132kV and 66kV) and 615 Nos. of grid

station from 500kV down to 66kV level.

A comprehensive project in this connection has been planned and named as 5th

Secondary Transmission & Grid Station (STG) Project. This project envisages

installation of new secondary transmission facilities comprising of 220kV , 132kV &

66kV transmission lines and grid station as well as strengthening of the existing system

through additions, augmentation and up-grading.

HISTORY of GEPCO

There were eight distribution regions in Pakistan, which were called Area Electricity

Board. In Punjab there are five and one in each province. Gujranwala was one of the Area

Electricity Board. The building was made in 1974. This is the distribution company,

which purchases the electricity from WAPDA.

WAPDA, The Pakistan Water and Power Development Authority, was created in 1958 as

a Semi-Autonomous Body for the purpose of coordinating and giving a unified direction

to the development of schemes in Water and Power Sectors. The Charter of Duties of

WAPDA is to investigate, plan and execute schemes for the following fields

Generation, Transmission and Distribution of Power.

Irrigation, Water Supply and Drainage.

Prevention of Water logging and Reclamation of Waterlogged and Saline Lands.

Flood Management.

Inland Navigation.

POWER WING

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Power Wing is currently headed by Member (Power). Power wing of WAPDA

comprising of Generation, Transmission and Distribution has been restructured into

fourteen (14) public limited companies.

These fourteen (14) Corporate Entities are;

Four (4) Thermal Power Generation Companies (GENCOs)

1. Southern Generation Power Company Limited (GENCO-1) head

    quarter at Jamshoro district Dadu near Hyderabad Sindh.

2. Central Power Generation Company Limited (GENCO-2) head

    quarter at Guddu district Jacobabad Sindh.

3. Northern Power Generation Company Limited (GENCO-3) head

    quarters at TPS Muzaffargarh district Muzaffargarh Punjab.

4. Lakhra Power Generation Company Limited (GENCO-4)

    Headquarter at WAPDA House Lahore.

•One (1) National Transmission & Power Dispatch Company (NTDC)

• Nine (9) Distribution Companies (DISCOs) as under:

(LESCO) Lahore Electric Supply Company

(GEPCO) Gujranwala Electric Power Company

(FESCO) Faisalabad Electric Supply Company

(IESCO) Islamabad Electric Supply Company

(MEPCO) Multan Electric Power Company

(PEPCO) Peshawar Electric Power Company

(HESCO) Hyderabad Electric Supply Company

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(QESCO) Quetta Electric Supply Company

(TESCO) Tribal Electric Supply Company

WATER WING

Member (Water) controls the water Sector in the entire country divided into north,

central, south zones, generally covering the North Western Frontier Provinces (NWFP)

and the provinces of Punjab and Sindh respectively, for execution of Scraps and surface

water development projects. Chief Engineers and Project Directors implement projects

falling under regions within the zone. In addition, the Water Wing has a C.E

(Coordination and Monitoring) for construction and operation of dams and all other

projects under Water wing services (TS) and two

Separate General Managers for Ghazi Barotha Hydropower and National Drainage

Project. The Planning Division of Water Wing, headed by a General Manager, looks after

all planning activities on the water side. The activities of water resources and hydropower

development and vision-2025 are handled by three General Managers i.e. Technical,

South, North, GM (P&D) and GM Hydro Development.

ASSUMPTION:

Government of Pakistan will support the Company to comply with prudential

Regulations of State Bank of Pakistan by debt equity swap on March 31, 2005 and

cover regulatory gaps in tariff determination by NEPRA to meet operating expenses.

Power will be available as per demand catering full requirement of the Company.

Constant growth in customers and sale units.

Interest rate on new loans in single digit

Inflation @ 7.72% and rupee devaluation @ 3-4%.

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Jurisdiction Map

2.2. Role of GEPCO in Pakistan

COMMERCIALIZATION POLICY

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In 1992, the Strategic Plan for restructuring the Pakistan Power Sector (PPS) was approved by

the GOP/CCI. As a part of the restructuring process, 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, Transmission and

Distribution to be restructured into fourteen (14) public limited companies under the

corporate law.

Restructure power sector assets to form autonomous commercial entities through the

adoption of prudent business practices, enhanced efficiency levels, cost reduction and

profit orientation

Promote competition to eventually offer affordable electricity to customers.

Through commercialization process, promote commercial viability and enhance business

value of the assets block of each corporate entity.

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 commercialization reforms program.

Formed fourteen (14) Corporate Entities as following:

Four (4) Thermal Power Generation Companies (GENCOs)

One (1) National Transmission & Power Dispatch Company (NTDC)

Nine (9) Distribution Companies (DISCOs)

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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.

Executed Legal agreements such as Business Transfer Agreements (BTA), Operation

and Development Agreement (ODA), Electricity Supply Agreements (ESA), Bulk

Supply Agreements (BSA) and Fuel Supply Agreements (FSA) between WAPDA

and corporate entities for autonomous commercial operation.

Transfer of WAPDA staff to the respective corporate entities (Manpower Transition

Program Phase-I completed). Phase II is scheduled for completion by June, 2000.

Obtained Federal Tax Exemptions for the corporate entities for Capital Value Tax,

Income tax and Wealth Tax.

Obtained consent of most of the creditors

Prepared, reviewed, approved and adopted opening Balance Sheets of the corporate

entities as of 30-06-1998.

Privatization schedule for Faisalabad Electric Supply Company (FESCO) finalized &

sent to the Privatization Commission of Pakistan

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).

Submitted proposal to GOP for Price consideration to be paid or settled by GOP with

WAPDA so that share of the corporate entities owned by WAPDA can be transferred

in the name of GOP.

Future Activities

To accelerate the commercialization process, following activities will be undertaken:

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Rationalization of transfer prices of power from GENCOs to NTDC and NTDC to

DISCOs and seeks NEPRA approval.

Initiate study to assess the merits of commercialization and privatization of Hydel

Generation facilities

Identification & transfer of residual assets and employees to the corporate entities.

ENVIRONMENT OF GEPCO

There is proper Government involvement in GEPCO. The policies regarding tariffs are

made by NEPRA then send to Government of Pakistan for approval and after appoval it

is sent to PEPCO Wapda House Lahore for sanctioning to GEPCO. The revenues

generated by GEPCO are through billing and from the billing revenues WAPDA

allocates the budget for GEPCO.

Competitors

GEPCO has no Competitors; it is the only company who provides electricity in

Gujranwala. There is no threat to GEPCO. It will remain in the commanding position

unless or until some new company comes in this race, but it seems that GEPCO will

remain in the stars positions.

Theft and ways to steel electricity

There are many ways to steal electricity which is very unethical and in return it could

affect the GEPCO performance. Some of the ways through which electricity can be stole

which are given below.

Direct hooking

Meter tempering

Earth System

TRAINING CENTERS

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General Manager (Training) office is functioning at WAPDA House, Lahore and controls

various training centers detailed below: -

WAPDA STAFF COLLEGE, ISLAMABAD:

Training fields covered here are as under:-

Utility Operation

Management Training

Commercial Training

Financial Training

Training of Trainers

Computer Orientation Course

Audit and Accounts Training for Staff and officers

It is also controlling 8 Regional Training Centers. This college conducts 17 courses.

MIS DIRECTORATE

GEPCO Computer Centre (WCC):

The Information System Department of GEPCO better known as GEPCO Computer

Centre (WCC) or MIS directorate is the hub of IT activity in Gepco. Ever since the

Computer Centre was established in 1968, GCC has supported the implementation of

computer technology throughout the organization and the Country. Using broad

categories of mainframe, minis and micro computers, running under an array of operating

environments GCC has also the distinction of producing skilled workforce for the IT

industry.

Equipped with VAX 4000 Computers from Digital Equipment Corporation (now

Compaq USA), IBM Servers, and WAPDA’s Information System Department field

formations have been given under the administrative control of respective DISCOs.

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These formations remained operational to provide computerized electricity bills to more

than 13.25 million electricity consumers, every month.

This largest computer application in Pakistan has ensured uniform implementation of

electricity tariff across the country. The system has helped in reduction of consumers

complaints and assisted in streamlining revenue realization process.

To receive payments against federal & provincial government department’s electricity

dues, directly from Federal Adjuster, a computerized system has been successfully

operationalized.

At WCC headquarters in WAPDA House Lahore, two Alpha 2100 computers equipped

with renowned Alpha processors have been installed. These computers are being

optimally utilized to assist in timely analysis, generating vital information for the

Authority and to cater for the processing needs of LESCO.

All the other software including Employees provident fund, Assets accounting etc. has

also been converted and new revised software packages are running smoothly.

Payroll System of WAPDA:

So far over 32,000 Gepco officers and officials of various Gepco formations have been

put on Y2K compliant computerized payroll system. The application software has been

provided to all DISCOs to ensure its complete implementation.

Entire operations of 177,000 WAPDA Employees provident Fund (EPF) members

including their monthly posting, annual balance sheet and up to end of service EPF

details have been fully computerized. Store-wise issue, receipt and balance of all 610

catalogued items have been put on computers.

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In the wake of complaints, an EPF Number based system has been put in place to

eliminate illegal availing of free units at more than one location by any employee.

Performance data monitoring report:

Performance data monitoring report reflecting various types of billing and

consumers statistics has also been refined. To assist in procurement of quality hardware

and software products, WCC is rendering valuable expert guidance to all WAPDA

formations seeking help. To consolidate the information from geographically distributed

databases, the data communication facility available via WAPDA's Administrative

Traffic Network in being used. The free facility is being used to transmit program and

summarized data.

WAPDA Networking System:

The filed formations are also being encouraged to use electronic mail facility available

through Internet. Using backbone Fiber Optics and CISCO switches, in WAPDA House

all floors of WAPDA House Lahore have been inter-linked enabling systematic sharing

of hardware and information.

Web Site Development:

An internal mail server and intranet website is developed for Authority information.

Intranet web application contains the modules like Inventory for NTDC and Distribution

stores, MIS reports, News, Notices, Projects, Books and Quran-e-Pak. To promote

technical knowledge among the masses of this county, WAPDA Computer Centre also

established two most modern computer training Institutes at Mingora (Swat) and Quetta.

These institutes have now been shifted under the administrative control of PESCO and

QESCO respectively. The technical courses are being constantly monitored and

whenever required, changes are being made to keep them align with latest technology.

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WORKING OF COMPUTER CENTER

There are six main sections, which are working in computer center. These are as follows:

1- Data Control Section

2- Data Entry Section

3- Machine Room

4- Software & Programming Section

5- Admin Section

6- Account Section

DATA CONTROL SECTION

The work of Data Control Section in Computer Centers is divided in to four sub-sections

as below:-

i) Liaison Section

ii) Billing Section

iii) Cash Section

iv) Co-ordination Section

Functions of LIAISON Section:

The main function of Liaison section is to receive all input data including Meter Reading

Lists, Bank Stubs & Scrolls from Assistant Manager’s (C.S) Office and to

dispatch/deliver all outputs along with electricity bills back to them. Generally following

input forms are received in the Liaison Section:-

i) CP-21-C Meter Reading List (General Consumers)

ii) CP-138 Meter Data Change form

iii) CP-136, 136 A Master Data Addition/Change form (Up to 40 KW)

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iv) CP-52 Bill Adjustment Note

v) CP-136 D Detection Adjustment for Direct Hooking

vi) CP-93 WAPDA Employee updating form

vii)

FLOW OF CASH DATA FROM BANK TO COMPUTER CENTRE

Customers pay their bills in the banks post offices. The cashier enters all the

payments in the scrolls, arranges the cash stubs in the same sequential order in which

entries are made in the scrolls. Necessary information such as payment date, bank

branch/ post office code and scroll number is noted on each scroll.

In Assistant Manager’s (C.S) Office the payment of each stub is compared with

the scroll and relevant amount is ticked / encircled. Encircling / Ticking of payments on

cash stubs are very important for identification of paid amount for entry purpose in

Computer Centre. It will be ensured that all the entries on a scroll must tally with the

stubs.

At the end, a bank statement is prepared in duplicate in the office of A.M (C.S) on

daily basis showing the payment date, bank code, total number of scrolls for each bank

and total cash received by bank. This statement is presented in the Computer Centre

along with scrolls and stubs. The duplicate copy of the statement is returned back to Data

Control Clerk duly signed by the person deputed for cash receiving.

RECEIPT OF CASH INPUTS IN THE COMPUTER CENTRE

Cash stubs, Bank Scrolls, CP-99s along with Bank statement for a specific date are

received in the Liaison section. In addition to the normal scrolls, sometimes debit

scrolls / stubs are also sent to Computer Centre in order to rectify any cash erroneously

posted, which may occur due to dishonored cheque. Following checks are performed

while receiving cash in the computer centre:-

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It is ensured that stamp and signatures of A.M (C.S) are clearly visible.

Signatures are compared with the specimen signatures in the Computer

Centre.

It is ensured that sub division code, bank name and code, payment date,

scroll No. and amount of each scroll are clearly written on CP-99.

Sub Division Code, Bank Code, Date of payment, scroll number and total

amount of scroll must be clearly written on the first stub and the last stub

of each scroll.

It is absolutely essential that in case the above conditions are not fulfilled, the data

should not be accepted by the computer Centre in order to avoid disturbance in the cash

accounts.

After acceptance of cash scrolls, the duplicate copy of the bank statement duly

signed by the official deputed to receive cash scrolls, must be returned to the Data

Control Clerk. These documents are then entered in the receipt register of liaison section

in which sub division codes, bank code, date of receipt, total amount of CP-99 are

recorded against the payment date.

After entering on register bundles of stubs and scrolls are arranged in the

following manner:-

1) Division wise

2) Sub Division wise

3) Bank wise

4) Date wise

5) Scroll wise in a sequence

CP-99s and scrolls are separated from stubs and handed over to cash section for onward

checking after marking the Main Date clearly.

The stubs are grouped into large bundles in above mentioned order. Information about each

bundle such as Division, Date and bank are recorded in detail in the data movement register.

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Each bundle is marked clearly with a specific number and main date.

This data is then passed on to the Data Entry section.

The signature of Data Entry Supervisor must be obtained in the Data movement register.

CP-139 received must be entered in the data movement register and handed over to cash

section for onward submission to Data Entry section.

DISPATCH OF CASH OUTPUTS IN LIAISON SECTION

Daily, Weekly and Monthly cash outputs are checked in the cash section by the section

supervisor. After proper checking these are handed over to Liaison section along with scrolls

and stubs. The liaison section dispatches these outputs after entering page wise on cash

output registers in respect of all Assistant Manager’s (C.S) Offices.

BILLING SECTION:

The main function of the billing section is to prepare all computer inputs except cash and

CP-139 for entry and as well as processing by Machine Room. The input data received

from the Liaison section is distributed among the Data Coders by Supervisor. The

allocation of data to different Data Coders for checking and verification is done by an

internal office order.

FLOW OF PRE-PRINTED METER READING LIST FROM

COMPUTER CENTRE TO A.M (OPERATION) THROUGH A.M

(C.S) AND BACK TO COMPUTER CENTRE

Pre-printed batch wise meter reading lists (MR) are sent by Computer Centre to

A.M (C.S) for onward transmission to A.M (Operation) about seven days prior to the

Meter reading date of a batch. Before dispatching the said list to A.M (C.S), number of

pages of M.R of each division is recorded in the register designed for this purpose. The

meter reading staff enters the present reading, units consumed and appropriate remarks

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such as “Defective, Round Complete, Meter Replaced, O.K Meter, Reconnected, and

disconnected” in remarks column wherever required.

In all those cases where meters have been replaced and against which meter

replaced is also written in remarks, the input form of Meter replacement (CP-138) should

also be attached with the meter reading list as supporting document. Assistant Manager

(Operation) will sign with stamp against the all reference numbers which are declared

defective first time or previous defective meters declared as OK. He will also sign and

stamp all cuttings/over-writings on M.R List. In the computer centre, when the Meter

Reading lists are received back from the Assistant Manager’s (C.S) Offices, it is first

ensured that data is according to schedule. A register is designed to record Division

wise / batch wise receipt of Meter Reading Lists. When the data is OK in all respects, its

entry is made in the register with the date of receipt.

Late receipts are recorded in red ink whereas in time receipts are recorded in blue ink.

The number of pages of Meter Reading list is compared with the number of pages of

Meter Reading list recorded at the time of initial dispatch.

CODING OF METER READING LISTS IN BILLING SECTION

Sub division code, batch number, total number of pages, total numbers of entries,

Assistant Manager (C.S) memo No. and date are checked on CP-80 as a first step. Then

the number of pages and entries written on CP-80 are confirmed with meter reading list

itself. It is ensured that Meter Reading list pages are arranged in order according to their

serial numbers and no page is missing. It is ensured that writing is legible and there is no

cutting / overwriting on Meter Reading lists. There must be the signature and stamp of

Assistant Manager (Operation) against new defective cases and previous defective meters

declared as OK. It is ensured that signature and stamp of Assistant Manager (C.S) is

available on first and last page of each sub division. The consumption of all those

consumers where “meter replaced” is written and CP-138 of replacement is attached,

must be checked by adding the consumption of meter replaced and meter installed.

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After coding, the concerned Data Coder will enter sub-division code, batch No.,

billing month, and number of pages and entries of Meter Reading list on a file cover. CP-

80 and CP-138 of replacement cases are detached from Meter Reading

List. Meter Reading List is placed in the relevant file cover of the sub division. Division

wise files are handed over to Data Control Supervisor for onward submission to Data

Entry Section.

Note: -In case of status code “7” the range of meter should be considered to

ensure the correct round completion and reading is according to the range.

CASH SECTION:

The payments made by the consumers are posted on Computer Master File

through this section. Cash section receives CP-99 and scrolls of a main date from the

liaison section along with other input forms related to the payments. Following inputs

are received and processed in this section in addition to the posting of payments through

stubs.

1. CP-139 Un-identified cash/debtors adjustment form.

2. CP-102 Weekly schedule of bank remittances.

3. CP-102-A Adjustment of bank remittances.

This section is responsible for 100% accurate posting of payments on Computer

Master File. Moreover, this section prepares and checks all weekly and monthly reports

relating to payments.

COORDINATION SECTION:

29

Co-ordination section is the most important section of Data Control. It provides co-

ordination among all other sections of Data Control. Following important jobs are controlled

through this section.

1. Industrial billing.

2. Processing of Dead Defaulter’s billing.

3. Processing of WAPDA Employees Departmental billing.

4. Processing of All Monthly Reports relating to billing.

5. Processing of Feeder Wise Line Losses Reports CP-22.

6. Processing of MIS Reports prepared at regional level.

7. Processing, printing and checking of all other reports demanded by the authority from

time to time.

Industrial Billing

A separate master file has been introduced for the billing of industrial connections having

peak load more than 40 KW. Following types of connection are billed under this

procedure.

Industrial connections having peak load above 40 KW.

Domestic connections above 40 KW.

Bulk supply connections.

Tube-well connections (Scarp + Agriculture) above 40 KW.

Street light connections.

Residential colonies attached to industrial premises

Railway tractions.

MDI detection bills

30

MDI detection bills must be 100 % checked from the source data of CP-52. It must be

ensured that complete bills are printed, for which detection adjustments are posted. Check

the billing month, issue date and due date of detection bills as per billing schedule.

WAPDA Employees Departmental Billing

When all the batches of General Billing have been billed, miscellaneous inputs (i.e. CP-

52, CP-138 and CP- 139) received during the month has been posted and cash of the last

date of month have also been posted, WAPDA Employees Departmental Billing steps are

performed. These steps include the billing of WAPDA employees departments. For this

purpose, a unique code number is assigned to each WAPDA Employees Drawing and

Disbursing officer.

Processing of Monthly Reports

After successful completion of bills of all batches, posting of all miscellaneous inputs

data, complete cash posting of all dates and successful completion of WAPDA employee

departmental billing and dead defaulter’s billing, monthly statistical file is generated to

process month end reports. These reports are considered to be very important and are

used for accountability of performances at different level.

Monthly bill adjustment posted list CP-88 S

Scarp IOT Posting

Invalid feeder step

Posting of payments at source (Adjuster)

Execution of Monthly Statistical File

31

After completion of steps mentioned above, monthly statistical file creation step,

generally known as “Total File” step, is executed. In this step opening balance, current

assessment, closing balance and all other allied information in respect of all the

consumers existing on master file are added up. All month end reports are based on total

file generated in this step.

MIS (Management Information System) Reports

Although all types of monthly reports (i-e. Billing, Payments, Arrears, Government and

WAPDA employee reports) are printed at circle level in circle computer centers but some

reports of important nature are consolidated and printed in regional computer centre.

These reports are called “MIS” reports. The term “MIS” stands for Management

Information System. These reports are printed on monthly basis and presented to the

regional executives. These reports reflect the analysis of assessment, payment, arrears,

receivables, spillover, deferred amount and line losses.

DATA ENTRY SECTION

In data entry section two type of working is performed.

1- Entry & Scanning of Cash Stubs

2- Entry of Misalliance Data & Payroll

MACHINE ROOM

In the machine room section printing is made of billing.

Following types of printing are made in machine room.

1. Proof List of CPs, MDI & Payroll

2. Proof List of Billing

3. Printing of Electricity Bills.

32

Machine room also takes back up of master file.

PROGRAMMING & SOFTWARE SECTION

The sole objective was to meet Information Technology challenges and to take advantage

of future opportunities in order to ensure company survival in competitive business

environment. The primary responsibility of the IS Department was to develop

Information Systems that will support managerial decision making along with core

objective of increasing productivity by efficient utilization of available financial,

technical & human resources.

In programming and software section software engineers are working for the

development of new software and to made amendment to make old software more

convenient and reliable for the users. The biggest achievement of the software section is

the preparation of bar code scanning software of the WAPDA ELECTRICTY BILL.

2.3. Role of GEPCO IN Terms OF Number of Branches

PEPCO is a system from where the electricity provided to people of Pakistan, and this is

only a system to provide electricity to the people of Pakistan. So there is a monopoly of

PEPCO in Pakistan, because there is no substitute of electricity and also, in Pakistan the

solar energy system is very costly and the people of the Pakistan cannot purchase the

solar energy system. PEPCO is a national system which prevail in Pakistan and its

branches in different cities like GEPCO, LESCO, IESCO, and FESCO etc. GEPCO has

been set up over area of jurisdiction and network of former

Area Electricity Board, which was created in early Eighties. It encompassed the areas of

existing Districts of Gujranwala, Hafizabad, Sialkot, Narowal, Gujrat and Mandi

Bahauddin.

2.4. Organization Office in which I have done internship33

I did my internship in GEPCO because I have some interest in electricity

sector of Pakistan. GEPCO has been set up over area of jurisdiction and network of

former

Area Electricity Board, which was created in early Eighties. It encompassed the areas of

existing Districts of Gujranwala, Hafizabad, Sialkot, Narowal, Gujrat and Mandi

Bahauddin. Gujranwala Electric Power Company was incorporated on 25 April 1998 and

obtained certificate for commencement of business on 05 June 1998. This is the

distribution company, which purchases the electricity fromWAPDA.

They have about20,0 9,052 connections, Average monthly collection for

the year20 05-08 is more than 2.5 billion.

Some important information about my branch is as follows:

Management of the branch

Sr.

#

Name Designation

1. Muhammad Ibrahim Majoka Chief Executive Officer

2. Mr. Hamid Mahmood Cheema Company Secretary

3. Hashmat Ali Kazmi HR & Admin Director

4. Barkat Ali Shahid Chief Engineer (Technical)

34

5. Sheikh Muhammad Ilyas Chief Engineer (Operation)

6. Muhammad Asad Finance Director

7. Ch. Muhammad Hussain Customer Services Director

8. Nadeem Ahmad Manger MIS

9. Yousaf Sani Mirza Manger I.A

Board of directors

The number of Directors of the Company is seven. No person is appointed as Director

unless he is a member of the Company. The Directors may elect one of their members as

the Chairman of the Board and vest in him such powers, as they may deem fit in relation

to the management and administration of the Company. The Directors may elect one of

their members to be the Chief Executive of the Company. The Chief Executive of the

Company shall be the ex-officio Vice Chairman of the Board.

This Board manages the business of the company. All the important decisions falling

outside the powers of Chief Executive are taken with concurrence / approval of the Board

of Directors.

DEPARTMENTS OF GEPCO

There are following seven departments of GEPCO.

1. Information System

2. Finance35

3. Human Resource and Admin

4. Technical

5. Customer Service

6. Operational

7. Audit Department

Summary:

By summarizing this chapter it can be said that electricity sector in Pakistan is

playing an important role in the development of the country. It has made the life of

people so convenient that was much difficult before some years; it has become easy to

manufacturing goods and other work requirement. A solar system or generator cannot

provide the more electricity to the manufacturing concern than WAPDA and if it

provided, it becomes costly. Now as a part of electricity sector GEPCO is playing a vital

role in the development of Pakistan by offering products, GEPCO Trainee program, and

also with the help of GEPCO career.

CHAPTER THREE: ORGANIZATION

This chapter is an imperative part of the internship report as it contains detailed

information about the branch in which internship has been completed. This also tells

about the history of the branch, its different departments, its role in that area as well its

surroundings, about the working of the branch, its relationship with the HEAD OFFICE,

its number of departments, its staff and their qualifications. It also contains information

36

about promotion system of the organization. Critical analysis of the branch and its

working is also done in this chapter. This chapter completely revolves around the

organization in which internship has been done. Different functions within the branch and

duties and responsibilities of the staff have discussed in this chapter. This chapter also

provides details about the morale of the staff and how much the branch is contributing in

the satisfaction of customers.

3.1. Brief History of the Organization

GEPCO has been set up over area of jurisdiction and network of former Area Electricity

Board, which was created in early Eighties. It encompassed the areas of existing Districts

of Gujranwala, Hafizabad, Sialkot, Narowal, Gujrat and Mandi Bahauddin. Gujranwala

Electric Power Company was incorporated on 25 April 1998 and obtained certificate for

commencement of business on 05 June 1998. This is the distribution company, which

purchases the electricity fromWAPDA. They have about20,0 9,052 connections,

Average monthly collection for the year20 05-08 is more than 2.5 billion.

There were eight distribution regions in Pakistan, which were called Area

Electricity Board. In Punjab there are five and one in each province. Gujranwala was

one of the Area Electricity Board. Area Electricity Board Gujranwala declared in1977

comprising Gujranwala, Sialkot and Sheikhupura Districts. The building was made

in1974. Creation of Gujranwala Electric Power Company declared on 01-07-1998

comprising Gujranwala, Sialkot, Gujrat, Hafizabad, Narowal and M.B.Din districts. In 25

April, 1998 Privatization board of WAPDA; the distribution board companies under the

company’s ordinance in1984 with their own Board of Directors Area Electricity Board

Gujranwala became Gujranwala Electric Power Company (GEPCO).

GEPCO Current Affairs 2010

Recovery of worth billion rupees should be made from dead defaulters MD PEPCO

TAHIR BASHARAT CHEEMA

37

A meeting of Distribution Companies and National Transmission and Dispatch Company

Limited (NTDC) to review the mid yearly progress, held at PEPCO Headquarters,

WAPDA house Lahore which was Chaired by Managing Director PEPCO Tahir Basharat

Cheema. The progress of 2009 was reviewed and future plans of next six months were

discussed. While evaluating the performances of DISCO’s officials MD, PEPCO ordered

to take stringent action against non performing SEs, XENs and SDOs and asked to

submit the report within two days. CEOs presented their plans on Line Losses,

Distribution System, overall Recovery Plan, and Maintenance and System Augmentation

Programme.While addressing the CEOs, MD PEPCO Tahir Basharat Cheema stressed

upon special efforts to reduce line losses through concerted efforts, based on strategic

vision which is being focused on developing extra vigilance, administrative and service

quality aspects of its operations, innovation and credibility based on research blended

with global trends so that the requisite actions are taken by the DISCOs.He asked CEOs

to put in extra efforts while monitoring recovery patterns and ensuring the minimum Line

Losses. Tahir Basharat Cheema also asserted that recovery of arrears worth billions of

rupees should be made from Dead Defaulters and their name should be made public

through Print and Electronic Media.During conference, multiple system augmentation

and infrastructure improvement programs were planned to execute enormous human

endeavor, technical expertise and financial investment be concentrated through various

developmental projects. CEOs told the conference that new poles have been erected and a

number of transformers have also been placed to provide un-interrupted power

supply.MD PEPCO has said that though situation about power generation is improving,

he instructed CEOs and General Managers that tireless efforts should be made to enhance

the improvement in every field, especially load management and its distribution network,

talking about the issue of over-billing, it must be addressed judiciously and not a single

extra unit be charged by the DISCOs instead should always facilitate the consumers

through customer services.He also instructed that strict security measures be taken for the

security of DISCO`s installations and grid stations of NTDC. The men and material

should be secured from ongoing sabotage activities which have gained momentum in the

38

country recently. All CEOs and NTDC should monitor its transmission network with the

help of Police and Local administration so that the rehabilitation work is done on war

footings in shortest possible time.

3.1.2. Relationship of Head office to the branch offices

The main electricity company is PEPCO from where all people who are living in Pakistan

getting electricity for use in commercial or industries. But did internship in GEPCO, it is

an independent sector which are providing electricity to the Gujranwala people and other

headquarters. GEPCO is totally private. And the head office of GEPCO is also in

Gujranwala and all the decisions made by you.

3.1.3. Number of Departments

DEPARTMENTS OF GEPCO

There are following seven departments of GEPCO.

1. Information System

2. Finance

3. Human Resource and Admin

4. Technical

5. Customer Service

6. Operational

7. Audit Department

MIS DIRECTORATE

GEPCO Computer Centre (WCC):

The Information System Department of GEPCO better known as GEPCO Computer

Centre (WCC) or MIS directorate is the hub of IT activity in Gepco. Ever since the

Computer Centre was established in 1968, GCC has supported the implementation of

39

computer technology throughout the organization and the Country. Using broad

categories of mainframe, minis and micro computers, running under an array of operating

environments GCC has also the distinction of producing skilled workforce for the IT

industry.

Equipped with VAX 4000 Computers from Digital Equipment Corporation (now

Compaq USA), IBM Servers, and WAPDA’s Information System Department field

formations have been given under the administrative control of respective DISCOs.

These formations remained operational to provide computerized electricity bills to more

than 13.25 million electricity consumers, every month.

This largest computer application in Pakistan has ensured uniform implementation of

electricity tariff across the country. The system has helped in reduction of consumers

complaints and assisted in streamlining revenue realization process.

To receive payments against federal & provincial government department’s electricity

dues, directly from Federal Adjuster, a computerized system has been successfully

operationalized.

At WCC headquarters in WAPDA House Lahore, two Alpha 2100 computers equipped

with renowned Alpha processors have been installed. These computers are being

optimally utilized to assist in timely analysis, generating vital information for the

Authority and to cater for the processing needs of LESCO.

All the other software including Employees provident fund, Assets accounting etc. has

also been converted and new revised software packages are running smoothly.

Payroll System of WAPDA:

So far over 32,000 Gepco officers and officials of various Gepco formations have been

put on Y2K compliant computerized payroll system. The application software has been

provided to all DISCOs to ensure its complete implementation.

40

Entire operations of 177,000 WAPDA Employees provident Fund (EPF) members

including their monthly posting, annual balance sheet and up to end of service EPF

details have been fully computerized. Store-wise issue, receipt and balance of all 610

catalogued items have been put on computers.

In the wake of complaints, an EPF Number based system has been put in place to

eliminate illegal availing of free units at more than one location by any employee.

Accounts Department

Account section performs following working.

Posting of debit credit vouchers and petty cash vouchers in their particular

registers.

Prepare Cheque

Posting of Cheque issued in the Cheque issued registers.

Filing of vouchers

Numbering of vouchers

Prepare payroll of the staff

From salary, deduct monthly installments for house allowance. Vehicle

allowance, other allowance, and prepare list of all installments.

Reconciliation of the bank statements and the branch books.

Admin section

Admin section of computer center performs the following function.

Maintenance of employees service books.

Report writing.

Receiving and dispatching of office orders.

Put up cases.

41

Dealing with other offices by receiving and sending post to them.

Record Keeping.

Finance DepartmentThe Finance department is consisting of two main departments i.e.

Corporate Planning and Control

The corporate planning and control department forecast, plans and control on the

basis of the past data.

Corporate Accounts

The Corporate Accounts Departments is consist of the following sections

Compilation Inter Office Transaction

Payable Receivable Imprest

Pension Section Banking

Works and Pre Audit Admin Accounts

Assets Post Audit

1. Compilation Section:

The compilation sections just compile all the accounting record of circles which consists

of division and revenue office and common offices. In each division office, revenue

office and common offices an accountant is appointed who record all the accounting

transactions and it is his responsibility to submit the trial balance on monthly basis to the

compilation office at head office of the GEPCO. In the compilation office all the trail

balance are compiled and the financial statements are made on monthly and year-end

basis.

2. Inter _office Transaction Section:

42

In inter_ office transaction section the transactions which are done by the two offices

under GEPCO are handled. In this section the documents which are used are S.S Cheque,

Debit Advice and credit advice.

S.S. Cheque/Super Subscribe Cheque:

It is a Cheque which is not cash at counter.

Debit advice:

It is issued to the office/formation from whom the amount is received.

Credit Advice:

It is issued to the office/formation to which the amount is paid.

The basic aim of inter office transaction section is to minimize the suspense balance.

I.O.T will be made among the different offices / formation under the company. At

company head Quarter the result of these suspense balances will become Zero/Nil after

reconciliation.

3. Receivable and Payable Section:

In the receivable and payable section the transactions which are done by the two

companies (under DISCOS) i.e. between LESCO and GEPCO, MEPCO and GEPCO etc.

In this section the documents which are used are S.S Cheque, Debit Notes and credit

Notes.

Debit Note: it is issued to the company from whom the amount is received.

Credit Note: it is issued to the Company to which the amount is paid.

43

The basic aim of receivable and payable section is to minimize the suspense balance

between the Discos. Receivable and payable will be made between the different

companies.

For payment of salary within the offices of GEPCO

I.O.T will come into action if any person has worked for some days in one office of

GEPCO and worked for some days in the other office of the GEPCO.

One of the offices will pay the whole amount of salary due to the employee for his

facility and the other office will pay amount to the employee but he will receive a

voucher from the other office.

For example if an employee worked for 15 days in the GEPCO and for 15 days in Sialkot

office and GEPCO had paid the whole salary, then following accounting entry will be

made by the both offices;

Total salary= 5000

“By GEPCO I.O.T”

Salary (debit able to Gujranwala) 2500

Salary (debit able to Sialkot) 2500

Cash 5000

“By Sialkot”

Salary ……………….Dr 2500

44

I.O.T ……………Cr 2500

I.O.T also involves when any type of material is requested by the Line Superintendent.

Material Requisition Cycle

Regional stores are the main stores having the material. All the material used in the

company is demanded from them, while the field stores act as an intermediary between

the regional store and the offices.

When the regional store fulfills the requisition of material the following accounting entry

is made by the store.

“For regional store”

(Main Store OF Gepco)

S.S Cheque debit

Material credit

“For field store”

Material debit

S.S Cheque credit

For providing free supply benefits:

45

The employees of GEPCO are provided the facility of free electricity supply. An

employee of IESCO can demand free supply in the region of GEPCO. For this

transaction I.O.T department will involve. The free supply to the employee will be

provided to the employee in his requested area but the expenditures will be charged to the

IESCO.

4. Imprest Section:

In the Imprest section the fund transfer to the drawing and disbursement officer for the

expenses of the office such as rent of building, Entertainment expense etc. every drawing

and disbursement officer has an account but he can not alone use this account, the other

person is the accountant whose contra signature is required. We can say that the account

is joint account of drawing and disbursement officer and accountant. First interim is

transferred to the account on or before 10th of every

Month and after that the remaining amount which is required by the every office is

transferred on 22nd of ever month.

5. Banking Section:

The aim of banking section is to manage all the accounts of the GEPCO. GEPCO has

approximately 1000 accounts approximately in different bank’s branches and post office. The

accountant of revenue office prepares a statement of the depositing amount by the customers

and sends it to the head quarter of GEPCO. In the banking sections the checking of all the

amounts are made from the revenue office and the bank’s accounts. If there is any

discrepancy is should by removed by the banking department. All the amounts are transferred

to the WAPDA house Lahore. There are the following types of account which the GEPCO

has

Revenue Collection Account

Capital Contribution Account(Capital Gains)

Deposit Works Accounts46

Security Deposit Accounts

Miscellaneous Collection Account

General Bank Account

6. Pension Section:

The pension section works to pay the pension to the retired employees of the

organization. This section also deals with the retirement program of the employees.

GEPCO introduces several pension and retirement schemes. It basically follows the

pension rules determined by the Government of Pakistan.

Pension is distributed through proper distribution channels. There are 26 distribution

channels of GEPCO from where the retired employees can draw their pension.

Factors of Calculation of Pension:

Age

Tenure of service

Last pay drawn

Commutation/Gratuity

Formula:

Last pay drawn* tenure of service*70%

30

Commutation:

47

Gross Pension * 35% *12

Pension:

Gross Pension * 65% * Table of Annexure I

7. Works & Pre Audit Section:

The purpose of establishing this section is to check the inaccuracies at the time of their

occurrence. Whenever there is sent any requisition for some material by any authorized

individual this section comes into action. A team of experts is formulated for the purpose

of inspection. This team conduct analysis of the requisition, if the requisition is up to

standard then it is sent further for its fulfillment.

8. Post Audit Section:

This section starts its work at the time of completion of nay task, so that any discrepancy

left can be removed. This pre audit and post audit system makes it possible that there

remains no chance of making default by any person.

9. Asset Section:

The asset section keeps the record of the tangible and intangible assets of the GEPCO.

This section updates its record with the installation of any new asset under the area of

jurisdiction of the GEPCO. This section also allocates the percentage of the asset to be

depreciated every year with respect to its usage.

And it also calculates the Amortization of Deferred Credit that is 3.5% equal to

depreciation by following straight line method of depreciation.

10. Account Section:

48

Following staff is working under accounts section,

One Account Officer

Two Account Assistant

The following working is done by the Account Section

Receives the Bank Scroll from more than 60 banks

Check each stub with scroll and prepare CP-99(forwarding memo bank scroll)

bank wise and make list of all bank scroll received for a particular date (which

is called Memo) and handed over to Data control clerk for further submission

to GEPCO computer centre.

GCC enters the records of all stubs in the main Data base against the

particular account no. of the consumer. And obtains CP-100 (daily cash lists)

This list received back in account section. The account section compares it

with CP-99 and difference may be reported to account officer.

On weekly basis the GCC issues a list that is called CP-101 (weekly

collection cash book by bank branches)

HUMAN RESOURCE AND ADMIN

The human resource and admin Department is consists of the following departments

Admin, Human resource, legal and labor Affairs.

Human resource department is responsible all the new hiring in the GEPCO, the

procedure of new hiring is place an advertisement in news paper from manger human

resource, collecting the application sorting the short listing candidate, conducting the test

and interview. And they train the new employee from the training colleges such as

WAPDA staff college, regional training center. The promotional exam is also conducted

by the human resource department.

The legal and labor affair department deals with the any objection on the employee from

any officer the hiring is conducted by the legal and labor department. During the hiring

49

the both parties gave the arguments and final decision is made by the committee to lay off

the employee or to continue the working.

CUSTOMER SERVICE

The customer service department is consists of the following departments

Commercial

Marketing and Tariff

Customer service supervisor.

The customer service department is headed by director customer service, which directly deals

with the revenue regarding heavy industries. Under the C. S. director there are deputy

commercial manger in each circle of GEPCO (no. of circle under GEPCO are 4). In each

circle there is one Deputy commercial manger DCM. The revenue officer i.e. assistant

commercial manger is the person who directly report to DCM.

There are the following sections of the revenue offices

Admin Account

Debtor Consumer record

Billing control Data control

Computer Commercial

The working of the account Section is to receives the Bank Scroll from more than 60 banks,

check each stub with scroll and prepare CP-99(forwarding memo bank scroll) bank wise and

make list of all bank scroll received for a particular date (which is called Memo) and handed

over to Data control clerk for further submission to GEPCO computer centre, GCC enters the

records of all stubs in the main Data base against the particular account no. of the consumer.

And obtains CP-100 (daily cash lists), this list received back in account section. The account

section compares it with CP-99 and difference may be reported to account officer on weekly

basis. The GCC issues a list that is called CP-101 (weekly collection cash book by bank

branches). The working of the consumer record Section is to receive the application form

50

CP-03 (Application and Agreement form), CP-06 (Demand Notices for Service Connection

Cast) and CP-08 (service connection order) from SDO offices, enters all information

regarding the new connection on the register Called CP-24 (Revenue office application

register).

ADMIN SECTION:

Following staff is working under admin section:

Two Junior Clerk

One Typist

Daftri

Two Niab Qasid

One Sweeper

Cashier

The following working is done by the Admin Section

The Admin manage the Service Books and service records of the staff of

revenue office.

And any instruction given by- the higher authority is implemented through

admin section.

It also manages the salary of the staff.

Maintenance of the office furniture and Fixture is managed by this section.

Pension, medical expenses and welfare fund of the retired Employees.

Free Supply of the Active and retired Employees.

ACCOUNT SECTION:

51

Following staff is working under accounts section,

One Account Officer

Two Account Assistant

The following working is done by the account Section

Receives the Bank Scroll from more than 60 banks

GCC enters the records of all stubs in the main Data base against the

particular account no. of the consumer. And obtains CP-100 (daily cash

lists)

This list received back in account section. The account section compares it

with CP-99 and difference may be reported to account officer.

General Account Clerk:

Copies of paid Demand Notices for New connection received from SDO offices,

entered there record in the Register Called CP-26 (security deposit register)

Any difference is reported to the account officer.

COMMERCIAL SECTION:

Following staff is working under commercial section,

Commercial Superintendent

Junior Clerk

The following working is done by the commercial Section

To supper wise the staff

Controls the MDI Billing along with any adjustment made by the billing and

Debtor control Section through CP-111 (lists of General Adjustment) issued by

the GCC. Any error found is checked.

Check the attendance of the staff.

52

Consumer Record Section (CRS):

Following staff is working under consumer record section,

Senior Clerk

Junior Clerk

The following working is done by the consumer record Section

Receive the application form CP-03 (Application and Agreement form), CP-06

(Demand Notices for Service Connection Cast) and CP-08 (service connection order)

from SDO offices.

Enters all information regarding the new connection on the register Called CP-24

(Revenue office application register)

And prepare the necessary CP-136 ( Master Data Addition/Change Form)

Handed over to the Computer Section for further process of billing of new connections

Any other change that is Name, Address, Load, Tariff and GST no. is also done

through the same process.

Disconnection order due to non payment (DCO& ERO) issued by GCC is send

to the SDO office for further process. For the effected DCOs CRC

Prepare CP-138 (consumer meter data change form) to stop the further

Billing.

As the consumer request for RCO (Reconnection Order) after payment of his

dues the CRC issues the RCO to the consumer after doing the needful as

advised by the authority.

Prepare CP-13 (consumer statistics) on month end and reported to GEPCO

Head Quarter.

53

DATA CONTROL SECTION:

Following staff is working under Data Control section,

One senior clerk

One Junior clerk

The following working is done by the data control Section

Receive the input data from all sections and enters in CP-82(Data Batch register)

and handed over to the liaison of GCC and receives the out put

Records from liaison section for GCC and again entered in Data Batch Register

and handed over to the concerned super wiser. Any discrepancy is reported to

RO.

BILLING CONTROL SECTION (BCS):

Following staff is working under Bill control section,

Billing control super wiser (BCS)

Billing control Clerk 1/sub-division

Junior Clerk (MRCC)

(Meter reading control clerk 1 senior clerk/ subdivision)

The following working is done by the billing control Section

After receiving the out put data{that is CP-21c (meter reading lists), CP-

85(consumer bills), CP-87(billing exception lists, CP-88A (billing

assessments, CP-88L (ledger posting), CP-89 (Heavy or credit balance lists),

CP-90 (lists of estimated meter reading)} from the DCC the BCS sort out all

data and handed over to all BCC for checking and forward (CP-21c, CP-85,

CP-90, CP-87) to there respective sub division offices.

After receiving back CP-21c from the SDO offices the BCS entered in CP-81

(revenue office meter reading list register) and handed over to concerned 54

MRCC for complete checking. After checking the MRCC attaches the CP-

80(forwarding memo) and handed over to the BCS for further submission to

the computer section.

Any complaint regarding billing is settled and prepared through CP-52(bill

Adjustment note) by BCS and entered in concerned CP-75 (bill adjustment

note register) and approves it from the revenue

Officer/competent authority and then send to the computer section through

CP-80.

DEBTOR CONTROL SECTION:

Following staff is working under Debtor control section:

Assistant (DCS)

1 Senior Clerk for 2 sub division

Court Clerk

The following working is done by the debtor control Section, DCS receives

CP-105(lists of surcharge levied in error computer input form)

CP-106 weakly cash posted summary

CP0-107 unidentified cash lists

CP-108 divisional cash analysis summary

CP-109 monthly surcharge summary by batches

CP-110 batch debtors ledger

CP-126 weekly lists of cash received on behalf of other divisions

CP-127 weekly lists of cash posting made by other divisions

CP-61 lists of permanently disconnected defaulters

CP-62 month wise detail of arrear

CP-125 daily cash exception lists

And hand over to the respected officials who check them and prepare necessary

statements.

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Prepare the date extended bills and installments as ordered by the competent

authority.

Settle the Complaints regarding the surcharge and unidentified cash posted

(after verifying from account section) through CP-139 (Debtor adjustment form)

attached with CP-80 and handed over to the DCC.

Receive the SS cheques from different GEPCO offices under this division and

arrange for its clearance through necessary CPs.

Issues the bill against Government connection under the division and watch

their payments time to time through visit and notices.

All monthly statements prepared by the super wiser for all such information

against Government and private consumer through Performa A, B and C.

The court clerk manages all the necessary record for the cases in different court as

advised by his council before next date of hearing. And at the end of the month

prepare a litigation Statement on specific Performa as advised by the authority.

TECHNICAL DEPARTMENT

The technical department is consists of the following departments

Planning and Design

Material management

Project cost

The technical department plans and designs the new grid stations and the lines from

which the electricity is passed and delivered to the customer from grid station. So we can

say that the structure is made by the technical department. This department is also

responsible to purchase new material such as meters, lines, poles and transformers. This

department is also responsible to estimate the cost of the new project such as new grid

station, new lines and poles etc.

OPERATIONAL DEPARTMENT

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The operational department is consists of the following activities:

The operational department is responsible to mange the structure which is made by the

technical department, the repair and maintenance is also made by the operational

department. In divisional level the xen is sitting to manage the operation and in

subdivision the sub divisional officer is sitting and responsible to take care of its area’s

structure.

One Window Operation:

The one window operation was introduced by Government in 1977. The basic objective

of one window operation was that to facilitate the consumers to solve the problems at

their doorstep. The one window operation take’s step if you want to have new connection

you have to go just to the nearest office of the window operation it will facilitate you and

will help you. You will get the connection with in a week. If you wanted to correct bill,

meter problem interruptions are solved as early as possible. They will try to solve your

problem as early as possible.

AUDIT DEPARTMENT Audit Department works in order to avoid common irregularities against expenditure.

While Auditing the administrative approvals, Technical Sanctions and Estimates

followings things will be checked out;

The work is authorized.

The charge is for bonafide purpose.

The administrative approval / technical sanction are supported by an

estimate that the amount sanctioned in the former is not exceeding that of

later.

The estimate covers all the possible commitments contingents upon the

execution of the work sanctioned.

Arithmetical calculations made in the estimate are correct.

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The scales of accommodation and services adopted do not differ from

those laid down by the Authority.

The rates of costing in the cost schedules attached to the estimate conform

to the prevailing contract rates with the due regard to the local conditions.

Where no definite scale is laid down in the authority’s orders for a

particular building the accommodation technically sanctioned accords

with the scales for a building most analogous to it.

The funds are available for the work in the year in which the work is to be

executed.

The amount appropriated is available under the head from which it is

allotted.

The order for re-appropriated is available under the head from which it is

allotted.

The order for re-appropriation of funds is issued by the competent

authority.

A register of estimates has been maintained to watch the administrative

approval and technical sanctions of estimates.

AUDIT OF TENDER REGISTER, SCRUTINY OF TENDERS ETC.

The following points will be seen while auditing the above documents:

Due publicity has been given to invite competitive rates and the time allowed

to tenders was according to rules; newspapers cutting are on record.

Envelopes containing the tenders are on record.

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The items put to tender are compared with the items in the estimates.

The amount administratively and technically sanctioned has been noted in the

tender Register.

3.2. Current Staff:

Current Staff of the branch according to Qualification and Experience:

Names Designation Qualification Experience

Mr.Abdullah Bhatti XEN M.A20 years

Mr.Fawad Alam Operational Manager B.A 4years

Mr. Javed Iqbal Finance Manager MBA 4 year

Mr.Tanzeel Accountant B.COM 1years

Mr.Kashif Accountant M.COM 1years

Mr.Majeed Clerk B.A 6 months

3.2.2. Training received by no. of employees?

General Manager (Training) office is functioning at

WAPDA House, Lahore and controls various training

centers detailed below: -

WAPDA STAFF COLLEGE, ISLAMABAD:

Training fields covered here are as under:-

Utility Operation

Management Training

Commercial Training

Financial Training

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1 guards

3 sweeper

2night guard

Training of Trainers

Computer Orientation Course

Audit and Accounts Training for Staff and officers

It is also controlling 8 Regional Training Centers. This college conducts 17 courses.

3.2.3. Work load (it is based on number of hours worked)

All most in all private and public sector the timing of working is 8 hours per day

that is 8.00A.M to 4.00 P.M. So, the duty of the workers of GEPCO starts from 8.00 A.M

to 4.00 P.M.

3.2.4. Salary Structure?

XEN Rs.48,000

Operational Manager Rs.20,000

Finance Manager Rs.28,000

Accountant Rs.12,000

Accountant Rs.12,000

Clerk Rs.10,000

3.2.5. Promotion system

As promotion is concerned at GEPCO it is given on the basis of performance. If

an employee performs the work well than others the GEPCO give promotion to that

employee and also increase salary.

3.2.6. Incentives and Motivation

In GEPCO employees are motivated by offering bonuses, as well as annual increments

also motivate employees. Medical allowances also motivate employees. The GEPCO

give free units of electricity to your employees. The number of units is according to the

scale of the employees.

3.2.7. Responsibilities and Duties performed

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In GEPCO working is divided into employees for efficient completion of the

operations by the employees having relevant knowledge and abilities as well as

experience for that particular duties.

3.3. Critical Analysis of the branch:

3.3.1. Communication system

At GEPCO communication among the employees is through systems. Employees

communicate with each other for different operations mostly for those which are limited

with respect to their ranks through computers.

3.3.2. Hiring System

Job Analysis

“The procedure for determining the duties and skill requirements of a job and the kind of

person who should be hired for it.”

Recruitment and Selection Process

The process of hiring and selecting new employee in GEPCO consists of both:

Testing Interviews

They give weight as under

40% to academic qualification

20% to interview

40% to test

Tests:

Their test criteria consists upon

Matriculation 8%

Intermediate 12%

Graduation 20%

Master 25%

Intelligence test

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They mostly conduct intelligence test in which they test the general intellectual abilities

of a candidate and measure range of abilities including:

Memory

Vocabulary

Verbal fluency

Numerical ability

Aptitude test

They also conduct aptitude test in which they measure

specific mental abilities, such as

Inductive and deductive reasoning

Verbal comprehension

Memory

Numerical ability

Motor abilities

They also take test of motor abilities in which they measure motor abilities of a

candidate e.g. for the job of steno grapier. It includes

Finger dexterity

Manual dexterity

Reaction time

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Interviews:

Panel interviews

The authority of GEPCO conducts panel interviews in which a group of interviewers

questions the applicant.

Mass interviews

They also conduct mass interviews in which a panel interviews several candidates.

Behavioral interview

Management also takes behavioral interview in which a series of job- related questions

that focus on how they reacted to actual situations in the past.

Job-related interview

They give more stress on job-related interview in which a series of job-related questions

that focus on relevant past job-related behaviors.

3.3.3. Morale Of staff

As I have observed and experienced the staff of the GEPCO where I have spent 8

weeks for internship the behavior of the staff towards customers is much cooperative and

lenient. The staff has high morale. They work with devotion. As GEPCO give the proper

guidance to that customer who are illiterate and that who are belong to village about the

services of the GEPCO. These people are less familiar with GEPCO dealings so the staff

of GEPCO is very accommodating. The staff is not only supportive to the customers but

also it follows the rules and regulations that are directed by the top management. As for

as I am concerned that how they had dealt with me during my internship, I would like to

say that they are much accommodating people but within the limits of their duties and

authorities.

3.3.4. Physical facilities

As for as physical facilities are concerned GEPCO has excellent buildings

especially in cities as for as GEPCO is concerned I would like to say that it is only best

branch with respect to working as well as environment. Required furniture is available

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and room’s size is medium. The GEPCO has only 22 rooms and 2 hall,1 room is for

lockers and the others for use for accountants, clerk, and for old documents. And staff of

the GEPCO performs their duties by sitting in their separate or particular room. Proper

ventilation system is there and some rooms where top management sitting are air

conditioned.

3.4. Performances

(In terms of quality through customer satisfaction)

The performance of the GEPCO is very well and also provides electricity to the

people. The GEPCO is starting a new electricity house in many areas where it will

produce electricity and provide to the people. The work in this project has been started

some years before and this will be completed in some period. After the completion of that

Project the problem of electricity load shedding will be solved and generate the huge

level of electricity.

Summary:

To summarize this chapter it can be said that this chapter is all about the

organization office in which internship has been done. What functions are being

performed within that branch? History of the branch mentioned in this chapter. How the

changes in policies are communicated to the different branches. Qualification of the staff

and also their experience has also been mentioned. It is also mentioned that how much

quality the branch has in terms of performance, and also in terms of customer

satisfaction. Morale of the staff has also been elaborated in this chapter. Branch location

and physical facilities within the branch has also been discussed.

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CHAPTER FOUR: Specialization Areas

This chapter is about the policies of the organization. Different policies are formed by the

organizations for performing well and also for smooth working of the organization. These

policies are transmitted by the top management of the GEPCO through Circulars. A

competitive strategy of the GEPCO has also been elaborated in this chapter.GEPCO

awards have also been described here. More of the policies are related to daily operations

of the organization. Principles of performance have also been mentioned such as

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customer focus, employee respect and also team based approach. Specific functions of

the GEPCO and also routine working and dealings of the GEPCO have been explained.

4.1. Policies:

COMMERCIALIZATION POLICY

In 1992, the Strategic Plan for restructuring the Pakistan Power Sector (PPS) was approved

by the GOP/CCI. As a part of the restructuring process, 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, Transmission and

Distribution to be restructured into fourteen (14) public limited companies under the

corporate law.

Restructure power sector assets to form autonomous commercial entities through the

adoption of prudent business practices, enhanced efficiency levels, cost reduction and

profit orientation

Promote competition to eventually offer affordable electricity to customers.

Through commercialization process, promote commercial viability and enhance

business value of the assets block of each corporate entity.

Enhance privatization initiatives.

Principles of Performance

Customer Focus

Over the years GEPCO has developed strong relationships with its customers by

understanding their needs and treating them with respect, dignity and importance. The

driving force behind its commitment and services is its focus on customers, ensuring that

it not only meets, but exceeds their expectations.

Employees Respect66

GEPCO encourages diversity and treat each of our employees with fairness. GEPCO

gives constructive feedback for their continuous development and seek suggestions from

all employees for further improvement. The GEPCO ensures that quality performance is

acknowledged and rewarded and exercise utmost responsibility in decision-making with

regards to our employees.

Team Based Approach

GEPCO believes in achieving its Mission and Vision by working together as a combined

group. MCB treats its employees as its internal customers and ensure that the

requirements of internal customer focus are always met. Equipped with in-depth product

knowledge, and recognizing the strengths in each individual, the GEPCO strives for

optimum-results from our co-workers and bringing out peak performances by working

towards common goals and objectives in today's dynamic GEPCO environment.

4.2. Functions in GEPCO

MANAGEMENT FUNCTIONS

There are the following management functions:

Planning

The planning of GEPCO to provide the electricity is based on instructions given by the

Public Representaters, District Nazims, through their MPA is for PUNJAB, Senators, and

MNA’S allocate their funding through Federal Ministry of Rural Islamabad. The criteria

are different for District Nazims’ the population must 200. Funding is up to 5Lack.

MPA’S the Population is 50, for MNA’S and Senators there is no criteria.

O rganizing

The organizing of GEPCO relates to the internal as well external environment that is

solely handled by CEO of GEPCO. It includes its Managerial Decisions, Organization

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policies, and quality control, increasing the work life of the employees and customers

problems.

Leading

As per leading is a concerned GEPCO launch many schemes as employee benefit and

family support to encourage the performance and involvement in work. To increase the

enthusiasm and charm of life they also launch the inter-departmental Games for which

they are panning to print in their quarterly Newsletter with complete details and

photographs. Except all this they give other incentives like bonuses, free electricity

supply, Pension, free medical benefits, home appliances loaning facilities etc.

Controlling

They have internal control systems which calculate the monthly as well as weekly

performance reports duly presented to the CEO. Internal Auditors perform their duties

with the passage of time but they also have external independent auditors, names “Ford

Rhodes Sidat Hyder & Co (FRESCO)” Chartered Accountants which perform their duties

on yearly basis at the end of financial year.

4.2. Strategies of GEPCO

STRATEGIC BUSINESS PLAN

"Provide Safe, Secure, Accessible and Reliable Electric Power supply to our esteemed

Customers in accordance with their varying needs in a cost effective and efficient manner

with special emphasis on excellence and innovation"

OBJECTIVES:

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Develop and maintain optimum level of operational efficiency, provide un-interrupted

power supply, create customers friendly services and remain one of the leading

distribution Companies of the country.

To make the Company financially viable and profitable.

To eliminate un-planned or un-expected claims on the Government budget.

To have efficient, trained and highly motivated work force.

ASSUMPTION:

Government of Pakistan will support the Company to comply with prudential

Regulations of State Bank of Pakistan by debt equity swap on March 31, 2005 and cover

regulatory gaps in tariff determination by NEPRA to meet operating expenses.

Power will be available as per demand catering full requirement of the Company.

Constant growth in customers and sale units.

Interest rate on new loans in single digit

Inflation @ 7.72% and rupee devaluation @ 3-4%.

ACTION PLAN

It is imperative for us to pursue NTDC to develop and continuously upgrade its

infrastructure to meet GEPCO's power demand which is likely to increase from present

1028 MW to 1388 MW in the year 2008-09 with average growth rate of 72 MW per year.

Company has planned construction of 11 new grids, extension of 23 grids, augmentation

of 18 power transformers with 20/26 MVA and conversion of 4 grids from 66 KV to 132

KV in addition to construction of 392.5 KM transmission lines. Company has also

planned to renovate 150 Nos. 11 KV feeders having 1620 KM length, addition of 1950

distribution transformers, augmentation of 975 distribution transformers and renovation

of 3900 LT proposals with 970.5 KM length to reinforce the distribution system. In

69

addition to above 820,564 sluggish meters will be replaced during this period to reduce

line losses.

The Company will also focus on improvement of customer services by Utilizing

information technology and increasing nos. of collection centers to deposit their bills will

facilitate consumers.

It is important to identify right person for the right position on timely basis, attract and

retain motivated employees to grow with the Company. Employee will be imparted

training to meet gaps between business requirement and actual competency.

Material management function will be streamlined to procure material in transparent

manner, ensure timely availability of equipment/materials and optimum level of stocks so

that company neither face shortage of materials nor funds are blocked in inventories.

4.3. Successes:

1. The 1st Power Distribution Company in Pakistan. The exclusive Electricity

Distribution Company in Pakistan having distinction of Winning “#1 Power

Distribution Company Award” continuously for last two years.

INAUGRAL CEREMONEY OF 62 MW GULF RENTAL POWER PLANT

(MAY23, 2010)

It was the PPP government’s initiative in the nineties that brought forward the

private generation through Independent Power Producers (IPPs). This was

followed by the scathing reaction that was aimed at making the people believe

that all investment in this context would be detrimental for the country. Today,

after more than a decade, the IPPs have established credibility and have become

70

successful partners to the government in power generation. The resolve to take

electricity to every nook and corner of the country has necessitated the adoption

of multipronged strategy. It is aimed at capacity enhancement through building

new power generation plants on one hand and up-gradation of the existing

transmission & distribution infrastructure on the other hand to achieve the desired

goal. In this respect, both public and private sectors have to work hand in hand.

The Government has already announced a lucrative framework to attract

investment in energy sector. We are providing full support to encourage local and

foreign power generation Companies to invest in this Sector.

It has been the policy of the Democratic Government to make Pakistan self-

sufficient in the field of energy. The completion of Gulf Rental Power Plant,

therefore, is in line with the Government priorities, and this project is a milestone

to support our policy of rental plants. The Government of Pakistan appreciates the

Group’s efforts in promoting our sustainable socio-economic growth. I believe

that this group has the potential to play an even greater role in the economic

development of Pakistan. The government of Pakistan appreciates the long term

investment by this group in Pakistan. We assure them of our support in all their

future projects especially the mega 850 MW Suki Kinari Hydro Power Project

with an estimated cost of USD 1.4 billion. Once completed, this will Insha’Allah

be one of the largest run of the river hydro power projects in Asia. I understand

that Suki Kinari hydro power enjoys full support of multilateral financial

institutions including the World Bank. With projects like these, Sponsors of

Gulf Rental Power have exhibited that foreign investors are continuing to invest

in Pakistan. I am sure that professional management of this Group and its

committed work force will continue to work with the same commitment and zeal

to achieve heights of professional excellence in times to come. Distinguished

guests! At this auspicious occasion I would like to announce the Vision Statement

for the power sector of Pakistan. This vision statement has been developed by the

71

Ministry of Water & Power and has full blessings of all key stake holders. Some

of the salient features of this vision statement are:

To double the generation capacity of the country from the current 20,000

MW to 40,000 within the next ten years.

To ensure that this capacity development happens along as low a carbon

emission path as possible.

To maximize efficiency gains in generation plants and in

transmission/distribution networks.

To maximize on conservation energy saver lamps, solarization of water

heating and irrigation pumping are some examples.

To develop these projects with maximum private investments as possible

public private partnership will be one of the key approaches to the

realization of these projects.

I have asked the Ministry of Water & Power to circulate the vision statement

today. Power sector is the priority of this government and we will solve this

problem with our ability and capability. Our government recently organized an

Energy Summit taking all the provincial governments and the stakeholders on

board. There is a huge possibility of investment in Pakistan and we are

considering all the alternative resources of energy to fill the demand supply gap.

We intend to move on a war footing to implement this vision. For this purpose:

Internally, we have formed a partnership with federal and provincial

governments, since both have to play important roles in the realization of

this vision.

Externally, we will form partnerships with the multilateral financial

institutions.

The Ministry of Foreign Affairs will help secure support as needed from

bilateral partners.

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In the end I would like to once again congratulate Gulf Rental Power management

and employees for their professionalism and dedication. At this stage I would

assure the Group of maximum governmental support in playing its proactive role

towards economic development and prosperity of Pakistan. I wish you all success.

MINISTER SYED YOUSUF RAZA GILANI ON INAUGRAL

CEREMONY OF 62 MW GULF RENTAL POWER PLANT (MAY

23, 2010)

Summary

By summarizing this chapter it is important to mention here that GEPCO has

policies that are implemented in all its departments. These policies are like to

meet the basic requirements of operating activities in a proper manner. In GEPCO

73

successes, GEPCO receive a award from the 1st electricity distribution company in

Pakistan and also GEPCO inaugurated the 62 MW gulf power plant for generating

more electricity requirement of country. The power plant inaugurated by the

Prime Minister of Islamic Republic of Pakistan Mr. Syed Yousuf Raza Gilani on

23, May 2010.

CHAPTER FIVE: Analysis of GEPCO

This chapter is about the major analysis of the GEPCO. For the accomplishment

of the requirement of the internship report I describe major analyses on the

organization that is SOWT and PEST analysis. The SWOT analysis shows that

the companies has many strengths like strong financial position of the owner of

the company, the successful history and experience of the GEPCO, well

furnished and well located office and the skilled and qualified employees. The

74

weak points are increasing the rate of electricity, lack of electricity plants etc. Its

main opportunity is to increase the rate of electricity because there is no close

substitute of electricity, as we know about the solar energy systems and

generators, these are both very costly and every person of our country cannot

purchase these facilities. At the end we are already know that there is a monopoly

of GEPCO.

5.1 SWOT Analysis

SWOT analysis classifies …

The INTERNAL ASPECTS of the company as strengths or weaknesses and

The EXTERNAL SITUATIONAL FACTORS as opportunities or threats.

When the analysis (both internal and external) has been completed, a SWOT

profile can be generated and used as the basis of goal setting, strategy formulation,

and implementation. By understanding the company’s strength(S), weaknesses

75

(W), opportunities (O) and threats (T), it helps top management further into

building up their vision and mission.

Some internal factors (for understanding strength and weaknesses) that can be

considered are:

Company culture, company image, organizational structure, key staff, access

to natural resources, position on the experience curve, operational efficiency,

operational capacity, brand awareness, market share, financial resources,

exclusive contracts, patents and trade secrets.

  Some external factors (opportunities and threats) that can be considered are:

Customers, competitors, market trends, suppliers, partners

Social changes, new technology, economic environment, political and

regulatory environment.

The SWOT analysis of GEPCO is as under:

5.1.1. Strengths:

The strength of GEPCO is as following;

Monopoly:

They are the only service provider in the city.

No Competition:

They are monopolist in the area as well as their parent company WAPDA

is also the wholly solely company for providing this service which is the necessity

of life in especially urban areas.

Attraction of employees:

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The strength of GEPCO is their 14,000 workers approximately.

WEAKNESSES:

The weaknesses of GEPCO are as following;

Shortage of Materials

There is shortage of materials, wires, poles, meters and other consumer

items.

Less involvement of employees

There are unavailable of material at the time of connection. Employees are

no ready to do work with care and receive the money as bribery from public.

Illiterate Staff

There are meter-reading problems because of illiterate staff of GEPCO. Bill

distribution problem also come to see.

Corruption

Meters are defective and there replacement is not available in time. The

employees receive heavy amount to do even public works.

OPPORTUNITIES:

Non Availability of Electricity:

20% of the villages in the Punjab have no electricity. This is its one of the

opportunities.

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Population Expulsion:

Increasing population is also their opportunity area and they are

monopolist of the time in Pakistan. More the population more the

opportunities for income as more connections.

Necessity of life

Everyone has to come to them for the sake of connection. It is now

become a necessity of life for general public, without it no one can manage his

daily routine work.

THREAT:

Theft of Electricity:

The threats of GEPCO are the theft of electricity. The public Representations

Police back them who stole the electricity.

5.2. PEST Analysis:

A broad view of market is important when management is interested in

introducing better services for customers. Rapid technological changes, global

competition and diversity of buyers preferences in many markets require the

constant attention of the market vouchers to identify promises business

opportunities , see the shifting requirement of the buyers, evaluate changes in

competitors positioning and guide the choice of which buyers to target and

classify them according to the respective segments.

Identification of the external and macro factors that influence buyers and

thus change the size and composition of the market overtime involve initially

building customers profiles. There influences include:

Political and legal environment

78

Economic trends

Socio cultural environment

Technological factors

5.2.1. Political

Political instability in Pakistan can lead to changes in laws and policies which can

be in favor or against the electricity sector. WAPDA are strongly affected by the

political and legal considerations. This environment is composed of regularly

agencies and government law that influence and limit various organization and

individuals. Mostly these laws create new opportunities for business.

5.2.2. Economic Trends

The economic factors have significant influence on the overall system of the

electricity sector. The change the rate of electricity units due to increase the cost

of production of electricity because due to shortage of water. The Pak rupee is

devaluing day by day and due to this the inflation rate is increasing and the also

due to this reason the tax impose very high.

5.2.3. Social Environment

Cultural issues can be there but still as there are a number of multinational

companies there, therefore, cultural issues are not prominent. A society is shaped

by beliefs, norms and values, people in a society consciously and unconsciously

interact with:

Themselves

Others

Organization

Society

Nature

Following are the main factors. Which arise because of change in socio-cultural

environment?

79

Consciousness about services

Concern for the environment

Improved customer relation

The socio-cultural factor has significant affect over the working of the electricity sector.

5.2.4. Technological Environment

The technology is changing day by day and new technology is introducing day by

day. Like that the gas generator and solar energy systems. If we compare our

technology with other country’s technology, our technology which we used for

the production of electricity become poor. Pakistan has very natural resources i.e

water and coil etc. Pakistan can compete with the solar energy system producing

the more level of electricity.

5.3. Ratio Analysis

FINANCIAL STATEMENTS

Gujranwala Electric Power Company Limited(GEPCO)

BALANCE SHEET

CAPITAL & LIABILITIES 2009 2008

     

Capital    

     

Issued, subscribed capital 10,000 10,000

Accumulated profits / (losses) (8943944203) (9378364944)

Deposit for shares 3,018,636,801 3,018,636,801

Total Capital (5925297402) (6359718143)

     

80

Deferred Credits & L.T. Liabilities    

     

Deferred credits 6877005467 5803358926

Long term loans 8550030000 11117380000

Deffered Liabilities 4775607213 3817246654

Security deposits 1466907934 1166566063

Total D/Cs & L.T.Liabilities 21669550614 21904551643

     

Current Liabilities    

     

Trade & Other Payables 12401935315 6312644065

Interest accrued on long term financing 110001039 460525195

Current portion of long term financing 3850730000 49950000

Total Current Liabilities 16362666354 6823119260

     

Contingencies & Commitments - -

     

Total Capital & Liabilities 32106919566 22367952760

ASSETS  2009  200881

     

Tangible Fixed Assets    

     

Net operating fixed assets 16989236259 14302310134

Long term advances 44622554 33828610

Total Tangible Fixed Assets 17033858813 14336138744

     

Deferred costs (preliminary exp :) - -

     

Current Assets    

     

Stores & spares 1180652939 869969437

Trade debts 4270583659 3017538806

Loans & other receivables 7602620656 2771822974

Short term advances 169145910 178879375

Interest accrued 3123676 3339843

Short term investment 83000000 83000000

Cash & bank balances 1763933913 1107263581

Total Current Assets 15073060753 8031814016

     

Total Assets 32106919566 22367952760

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Gujranwala Electric Power Company Limited (GEPCO)

INCOME STATEMENT

2009 2008

REVENUE Rupees Rupees

Electricity sales 44302031609 29190950848

Cost of electricity (40264754254) (32247486620)

gross profit 4037277355 (3056535772)

Amortization of deferred credits

322165520 273312099

TOTAL 4359442875 (2783233673)

OPERATING EXPENSES

Distribution cost 2965024543 2419707509

Administrative expenses 1271144303 1101561463

total expense 4236168846 352168972

123274029 (6304492645)

Other income 1151629572 999254681

1274903601 (5305237964)

Finance cost 299789491 1076442703

Balance before taxation 975114110 (6381680667)

Taxation 540693369 (41897612)

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Profit/(Loss) after taxation 434420741 (6339783055)

STATEMENT OF CASH FLOW

2009 2008

Rupees Rupees

CASH FLOW FROM OPERATING ACTIVITIES

Cash Generated From Operations 1391638653 (5088914173)

Increase in capital contribution 1016342759 1212287983

Increase in receipts against deposit works 942755411 280443065

Post employment benefits paid (290191893) (242155790)

Financial Charges paid (650313647) (1076442703)

Taxes paid - (6204151)

Net Cash Generated/(Used) From Operating Activities 2410231283 (4920985769)

CASH FLOW FROM INVESTING ACTIVITIES

Fixed capital expenditure incurred (3377215541) (3826723814)

Sale proceeds Operating fixed Assets 4168943 -

Long Term Loans given (10793944) (9982451)

Interest received 96507720 59590656

Net cash used in investing activities (3287332822) (3777115609)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from long term financing – Net 1233430000 9029936299

Security Deposits received 300341871 163409742

Net Cash Flow Generated From Financing Activities 1533771871 913346041

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Net increase/(decrease)in cash and cash equivalents 656670332 495244663

Cash and cash equivalents at the beginning of the year 1107263581 612018918

Cash and cash equivalents at the end of the year 1763933913 1107263581

RATIOS

2009 2008 Fav/infav Change

Liquidity ratios

Current ratio 0.92 1.17 Unfav -0.25

Quick ratio 0.85 1.02 Unfav -0.17

Absolute Quick ratio 0.13 0.17 Unfav -0.04

Working capital -1289605600 1208694756 Unfav -80910844

Activity ratios

Debtor turnover 10.377 9.772 Unfav 0.61

Collection period 34.692 36.839 Fav -2.147

Working capital turnover 24.15 74.92 UnFav -50

Fixed assets 2.3 2.04 Fav 0.26

Total assets 1.37 1.30 Fav 0.07

Solvency ratios

Time interest earns -4.721 -0.647 Unfav 4.0741

Debt ratio 0.965 1.28 Fav -0.315

Equity ratio -0.965 -0.28 Unfav -0.068

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Debt to equity 2.937 --113.89 Fav -108

Profitability ratio

Net profit ratio 0.0098 -0.2 Fav 0.209

Operating profit ratio 0.028 -0.18 Fav 0.208

Gross profit ratio 0.0911 -0.104 Fav 0.195

Operating ratio 0.0956 0.12 UnFav -0.024

Return on total asset 0.0135 -0.283 Fav 0.296

Return on fixed asset 0.025 -0.443 Fav 0.468

Market Analysis

Degree of Financial Leverage

1.30 -0.83 2.13

Earning Per Share -1655522 -595302 Fav 1060220.7400

Book Value Per Share 575,367 -19935 Unfav -595301.7323

RATIOS

Liquidity Ratios

Liquidity ratios provide information about a firm's ability to meet its short-term

financial obligations. They are of particular interest to those extending short-term credit

to the firm. Two frequently used liquidity ratios are the current ratio (or working capital

ratio) and the quick ratio.

Current Ratio

The current ratio is the ratio of current assets to current liabilities:

86

Formula:Current Ratio = Current Assets / Current Liabilities

Liquidity Analysis 2009 2008 Change

current ratio 0.92 1.17 -0.25

Quick Ratio

The quick ratio is an alternative measure of liquidity that does not include inventory in

the current assets. The quick ratio is defined as follows:

Formula:

Quick Ratio = (Current Assets – Inventories) / Current Liabilities

Liquidity Analysis 2009 2008 Change

quick ratio 0.85 1.02 -0.17

Cash Ratio/ Absolute Liquid ratio

The cash ratio is the most conservative liquidity ratio. It excludes all current

assets except the most liquid: cash and cash equivalents. The cash ratio is defined as

follows:

Formula:

Cash Ratio = (Cash + Marketable Securities) / Current Liabilities

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Liquidity Analysis 2009 2008 Change

Absolute ratio 0.13 0.17 -0.04

WORKING CAPITAL

The working capital of a business is an indication of the short-run

solvency of the business. Compute working capital as follows.

Formula:Working capital=Current Asset-Current Liability

Liquidity Analysis 2009 2008 Change

working capital -1289605600 1208694756 -80910844

Graphical Presentation

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Liquidity Analysis

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2009 2008 Change

current ratio

quick ratio

absolute ratio

COMMENTS ON LIQUIDITY RATIOS:

The ability of a firm's to meet its short term liabilities is checked by the analysis of its

liquidity ratios. WAPDA is liable mostly to pay its internal short term liabilities such as

payable to its employee's Salaries, TA/DA, Overtimes, Shift Allowances and risk

allowances. Its external payables are less as compare to the internal payables. In 2008

these are high and after the passage of one year it lessens to some extend due to fewer

payments to the external creditors.

It is concluded that GEPCO is in favorable position in 2009 than 2008 to payables its

shorter liabilities mostly the internal liabilities. The change is minor which shows the

more stability in next year.

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ACTIVITY RATIOS

Asset turnover ratios indicate of how efficiently the firm utilizes its assets. They

sometimes are referred to as efficiency ratios, asset utilization ratios, or asset

management ratios. Two commonly used asset turnover ratios are receivables turnover

and inventory turnover.

Debtor/Account Receivables Turnover

Receivables turnover is an indication of how quickly the firm collects its accounts

receivables and is defined as follows:

Formula:

Receivable Turnover = Annual Credit Sales / Accounts Receivables

Activity Ratios  2009 2008 Change 

 

debtor turnover 10.377 9.772 0.61

Average Collection Period

It is the accounts receivable balance divided by the average daily credit sales,

calculated as follows:

Formula:

Average Collection Period = 360 / Accounts Receivable Turnover

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Activity Ratios 2009 2008 Change

collection period 34.692 36.839 -2.147

Account Payable Turnover

Formula:Accounts Payable Turnover = Purchases / Accounts Payables

Average Payment Period

Formula:Average Payment Period = 360 / Accounts Payable Turnover

Fixed Asset Turnover

Formula:Fixed Asset Turnover = Sales / Net Fixed Assets

Activity Ratios 2009 2008 Change

fixed assets 2.3 2.04 0.26

Total Asset Turnover

Formula:Total Asset Turnover = Sales / Total Assets

Activity Ratios  2009 2008 Change 

total assets 1.37

1.30 .07

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Graphical Presentation

Activity Analysis

-60

-40

-20

0

20

40

60

80

100

 2009 2008 Change 

debtor turnover

collection period

working capitalturnover

fixed assets

total assets

COMMENTS ON ACTIVITY RATIOS:

Activity ratios indicate how efficiently the firm utilizes its resources or sometimes are

referred to as efficiency ratios or asset management ratios.

. GEPCO more utilized its resources in 2008 than 2009 the reason is that to reduce the

load shedding but in vain and in 2009 the efficiency toward utilization is reduced. The

change in working capital is handsome which shows the best activities in that year and

more efficiency of the firm, but in fixed and total assets still same which shows no

change in assets and technology during the nest year.

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PROFITABILITY RATIOS

Profitability ratios offer several different measures of the success of the firm at

generating profits.

The gross profit margin is a measure of the gross profit earned on sales. The gross profit

margin considers the firm's cost of goods sold, but does not include other costs. It is

defined as follows:

Operating Profit Margin

Formula:Operating Profit Margin = Operating Profit / Sales

Profitability ratio 2009 2008 Change

Operating profit ratio 0.028 -0.18 0.208

Net Profit Margin

Formula:Net Profit Margin = Net Profit Tax / Sales

Profitability ratio 2009 2008 Change

Net profit ratio 0.0098 -0.2 0.209

Operating Ratio

Formula:Operating Ratio = Operating Expenses / Sales

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Profitability ratio 2009 2008 Change

Operating ratio 0.0911 -0.104 0.195

Gross Profit Margin

Formula:Gross Profit Margin = (Sales – Cost of Goods Sold3...) / Sales

Profitability ratio 2009 2008 Change

Gross profit ratio 0.0911 -0.104 0.195

Return on Assets

Return on assets is a measure of how effectively the firm's assets are being used to

generate profits. It is defined as:

Formula:

Return on Assets = Net Income / Total Assets

Profitability ratio 2009 2008 ChangeReturn on total asset 0.0135 -0.283 0.296

Graphical Presentation

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-0.6

-0.4

-0.2

0

0.2

0.4

0.6

2009 2008 change

Net profit ratio

Operating profitratioGross profitratioOperating ratio

Return on totalassetReturn on fixedasset

COMMENTS ON PRPFITABILITY RATIOS:

Profitability ratios offer several different measures of the success of the firm at

generating profits. GEPCO suffers in losses in 2008 but in next year it goes some

favorable condition. Profitability Ratios shows the profit margins in different angles of

any organization but it the sad thing for GEPCO that it goes into losses still in a

monopoly condition in the country. The main problem behind it that the production of

electricity by fuel and coil hydel production through which WAPDA gets one Unit in 16

rupees and serve it to the consumer only in 9 rupees. A huge organization absorbs bulk of

funds in its management. The corruption of staff and employees also suffer it greatly

which causes its losses.

MARKET / INVESTOR ANALYSIS

DEGREE OF FINANCIAL LEVERAGE

Formula:Degree of Financial Leverage = EBIT / EBT * 100

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Market analysis 2009 2008 Change

Degree of financial leverage

1.30 -0.83 2.13

FINANCIAL ANALYSIS

Financial analysis is a process which involves reclassification and summarization of

information through the establishment of ratios and trends.

Analysis of financial statements

It refers to the examination of the statements for the purpose of acquiring additional

information regarding the activities of the business.

The users of the financial information often find analysis desirable for the interpretation

of the firm’s activities.

Note: The financial statement to be used for the purpose of analysis should be

the audited ones. The audited financial statements give the analyst the auditor’s

statement as to whether the records represent a fair view of the company’s

affairs.

The Objectives of Financial Statement Analysis

The overall objective of financial statement analysis is the examination of a firm’s

financial position and returns in relation to risk. This must be done with a view to

forecasting the firm’s future prospective. For the purpose of understanding, the following

financial statements will be used.

Financial Ratio Analysis96

The Balance Sheet and the Statement of Income are essential, but they are only the

starting point for successful financial management. Apply Ratio Analysis to Financial

Statements to analyze the success, failure, and progress of your business.

“Financial ratio analysis is the calculation and comparison of ratios which are derived

from the information in a company's financial statements. The level and historical trends

of these ratio scan be used to make inferences about a company's financial condition, its

operations and attractiveness as an investment.”

Ratio Analysis enables the business owner/manager to spot trends in a business and to

compare its performance and condition with the average performance of similar

businesses in the same industry. To do this compare your ratios with the average of

businesses similar to yours and compare your own ratios for several successive years,

watching especially for any unfavorable trends that may be starting. Ratio analysis may

provide the all-important early warning indications that allow you to solve your business

problems before your business is destroyed by them.

Summary

By summarizing the above two analysis we can say that the GEPCO’ main strength is

better performance because there is a monopoly of GEPCO and main weak points are

political issues in its managements and the lack of electricity and the increase rate of

electricity units, and there is no latest technology for the production of electricity and also

I have discussed in this chapter that the financial analysis and the ratio analysis and also

PEST analysis. And also have discussed the objectives of financial analysis and also

financial statements.

CHAPTER SIX: Recommendations

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During my internship I observe some activities and I have some suggestions relating to

them. These are as following:

Proper training of employees:

There should be a proper training of employees particularly the employees who are using

computers.

Involvement in work:

The work should not be imposed on employees. There should be the involvement of

employees while assigning them works. To do work which is assigned with great care is

the main duty of employees.

Proper Control to Avoid Theft of Electricity:

There should be a proper system to control the theft of electricity. As it was controlled

little bit but still there is deficiency. The material should be available at the time of

connection.

Problem of load shading:

The costumers of GEPCO have a major complain about load shading it should be

removed.

Proper Internal Check System:

There should be proper internal check system so that working of one employee can be

automatically checked by other employee.

Computer Education:

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The computer education should be made compulsory for every employee for the better

understanding of the system so that errors and mistakes could be removed up to a lot of

extent.

Data Base System:

There should be computerized database system to check the arrival timing of the

employees in the company and weekly report about the attendance of employees should

be monitored by the top management.

CONCLUSION

At the end of my internship it is concluded that WAPDA is a monopolistic company. The

GEPCO is a sub unit of it and not fulfill the requirements of the consumers by supplying

of the electricity to the ultimate consumer.

Basically GEPCO alone is nothing because it is working under the supervision of

WAPDA which is controlled by the government of Pakistan.

But during my internship I found every person very cooperative i.e. they are willingly

share knowledge with me that they got during there past experience. I was very strange

that in government organizations the persons are ready to share the knowledge with the

internee. The behavior of staff is very cooperative and the environment of organization is

very friendly with the colleagues and internees. Taaj Muhammad Anjum and Ghulam

Murtaza Bhatti are two bodies who help me and guide me in every step of difficulty.

They are very much cooperative with me and share the good experience of GEPCO.

It is also concluded by me that all the employees of GEPCO are fully equipped with

bundle of allowances and facilities but most of them are indulged in the corruption

activities which suffers the whole WAPDA.

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BOOKS

Gitman, Lawrence J. 2005 “Principles of managerial Finance”

India: Pearson Education, pp. 54-65

Muhammad Arif & Muhammad Sohail Afzal 2009“Advanced Accounting”

B.com Revised Edition, pp 178-207

Websites:

www.wapda.com.pk

For all the information related to WAPDA i.e. about power wing, water wing, training,

commercialization policy etc.

And to get the information about the history, mission, vision, goals, objectives etc of GEPCO I

visit the site.

www.gepco.com.pk

List of Abbreviations

WAPDA

100

Water and Power development authority

GENCO

It means the Generation Companies. Companies which generate the electricity.

DISCO

Means Distribution Companies. Companies which distribute the electricity.

PEPCO

Pakistan electric power company.

CPPA

Central Power Purchase Authority. The Authority which purchase the electricity from

Genco’s (Generation Companies).

NTDC

National Transmission and Dispatch Company. Company which dispatch the electricity

to different regions.

GSC

Grid Station Construction.

GOP

Government of Pakistan.

BTA

Business Transfer Agreement.

ODA

101

Operational Development Agreement.

NEPRA

National Electric Power Regulatory Authority.

I.O.T

Inter Office Transaction. A transaction made within an office and SS Cheque is issued for

this transaction.

S.S. Cheque/Super Subscribe Cheque

It is a Cheque which is not cash at counter.

Debit advice:

It is issued to the office/formation from whom the amount is received.

Credit Advice:

It is issued to the office/formation to which the amount is paid.

CRC

Consumer Record Section. Receive the application form CP-03 (Application and

Agreement form), CP-06 (Demand Notices for Service Connection Cast) and CP-08

(service connection order) from SDO offices.

C.M

Coordination and monitory

P.A 102

Planning and development

WCC

WAPDA Computer center

G.O.P

General operating procedure

EPF

Employee provident funds

RO

Revenue Officer

XEN

Executive engineer

SDC

Subdivision Clerk

CP

Commercial procedure

SDC

Subdivision Clerk

103