Mepco (Wapda) : Internship Report On

INTERNSHIP REPORT ON
MEPCO (WAPDA)
MEPCO CIRCLE MULTAN
Internship report submitted to the Bahaudin Zakariya University to

fulfill the requirements of
M.Com Degree
BY
M.Com
Roll No. 18
Session: 2008-2010
COORDINATOR
Prof: Khawaja Shaber
APPROVAL SHEET
INTERNSHIP REPORT ON MEPCO
SUPERVISED BY -----------------------------
DESIGNATION -----------------------------
SIGNATURE -----------------------------
EXTERNAL EXAMINER
NAME -----------------------------
DESIGNATION -----------------------------
SIGNATURE -----------------------------
PREFACE
Genius makes its observations in short hand; talent writes them out at length.”
The Govt Commerce College Multan| ii

Christian Novell
As mentioned by the above quotation observing and on site viewing are very firm base for
learning. We learn a lot more by seeing theories, we read in books, applied practically by the
pros and by seeing how they actually put them to work.
If we over the significance of internship program then we will be able to bare the facts that
internship enhance ones practical loom towards work and provide maximum chances for
learning, which will obviously help out candidate in the practical fields. The intention about
internship program is that the students can analyze, observe, feel, examine the organization
environment and equip themselves with the tools to face the ever shifting challenges in the
organizations. In short internship plays a pivotal role in the future sensation & stir of the
candidate.
This Report is specially meant for the student of M.com. It is concerned to a brief study of the
operation, Function, tasks and services of MEPCO.
The effective system at MEPCO was a piece of art and to see it in working process was a treat its
elf.
MEPCO has fine organizational structure and a well defined fully working effective system that
helps and aids managers to do their jobs at best. Our knowledge was further enlightened when
we had some of the lectures from the senior managers of MEPCO, they knew quite a lot about
the organization and the subject and they left no stone unturned.
In preparation of this Report is have tried my best to provide all Possible information about the
operation, function and tasks of MEPCO in brief and comprehensive form. It also includes a
brief department worked during internship. I have also tried my best to use simple and easy
words and language.
This report is an entire work of my first step of practical work about MEPCO operations &
practices. In my view it is a credible and comprehensive compilation of facts. In this report I
wrote principally on the issues pertaining to job duties & responsibilities, operations &
practices and its future prospects with some recommendations.
When the time came to give this information a convenient shape I was confronted with a view of
what to put in. One leeway was to include all details with explanation & second preference was
to point out some worthy issues with some details. Last solution looked more practicable to me
therefore I opt for second solution i.e. to present some relevant feasible details. These details
entail information about management philosophy, practices, and functions, strong and weak
areas of MEPCO.
I take this opportunity to express my gratitude to all who helped me in the preparation of this
valuable report.
Then internship report ends with some recommendation after identification of some problems
observed during the course of internship.
The Govt Commerce College Multan| iii

ACKNOWLEDGEMENT
All praise to Almighty Allah, the most merciful and compassionate, who gave me skills and abilities
to complete this report successfully.
I am grateful to my parents who are always been a source of encouragement for me throughout
my life and from start to the end of this report. I am thankful to all MEPCO STAFF who helped me
gathering data and collecting lectures.
I found everyone very co-operative and helpful for providing me the theoretical as well as practical
knowledge about the functions and operations of the MEPCO.
The whole MEPCO Team that helped me by providing all the needed information I needed to co
mplete
this report.
Sadaf Javed
M. Com
Govt. Commerce College Multan
Session 2008 - 2010
The Govt Commerce College Multan| iv

DEDICATION
I dedicate my work to firstly MUHAMMAD (S.A.W.W) and also my most respectable parents and
teachers whom prayers and hard work made me able to have such an opportunity of working in the
Government Sectors and get experience.
EXECUTIVE SUMMARY
“Experience is not what happens to you, it is what you do with what happens to you.”
-Aldus Huxley
I judge my time spent at MEPCO (Finance) departments being the most productive and
exhilarating experience of my corporate life. Few of the main highlights of my work experience
while at Finance Department were:
 Good Leadership
 Congenial Work Atmosphere
 Challenging Tasks Assignment
 Employee Empowerment
 Proactive Problem Resolution
Before the details description of the report I started with the summary of work I had done. The
basic purpose of this summary is to given an idea about the contents and efforts made behind
the completion of the report to the reader.
It was assigned me to visit the MEPCO to view the working environment, function, procedures
and behavior of doing work. Internship was started from 11-01-2011 and end on 10-03-2011,
this period was the real experience of my life and I saw the setup, working process and formal
documentation of the MEPCO.
The MEPCO is a very big organization with several departments in working in the head office.
The human resource department which deals with the internees has assigned me MEPCO
Khanewal Road Multan for 8 weeks. MEPCO gives me the opportunity to view, how the books of
accounts are prepared, how to fill the different forms, how to behave with customers and about
the record keeping. I worked in different section of MEPCO and learned about distribution
system of MEPCO, technical correspondence between departments and flow of data between
departments. Here staff gives me opportunity to do practical work. It was a really nice
experience for my upcoming practical life.
I would like to conclude by saying that even though every person will have a different story to
tell. I have given more than 100% of my efforts to keep up that good work and I am sure that my
colleagues have done the same. I am hopeful that as we pass through the corridors of this great
institution into the real world, this legacy will be kept and upheld by the future generation
commerce.
The Govt Commerce College Multan| 1

INTRODUCTION
PURPOSE OF THE STUDY

General Purpose:
 To get acquaintance to the MEPCO operations.
 To know what sort of changes management brings in managerial activities.
 To see the application of our Professional studies especially.
Specific Purpose:
Specific purpose of the study includes.
 A partial fulfillment as a requirement for the completion of M.Com degree.
 To objectively observe the operations of MEPCO in general and the operations of MEPCO
in specific.
 To make recommendations or implementation plans for the improvement of the

operations of MEPCO in the light of our professional studies.

WAPDA (Water and Power Development Authority)
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.
 Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA
and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and
hydropower development whereas PEPCO is vested with the responsibility of thermal
power generation, transmission, distribution and billing. There is an independent
Chairman and MD (PEPCO) www.pepco.gov.pk replacing Chairman WAPDA and
Member (Power) who were previously holding the additional charges of these posts.
 WAPDA is now fully responsible for the development of Hydel Power and Water Sector
Projects.
 PEPCO has been fully empowered and is responsible for the management of all the
affairs of corporatized nine Distribution Companies (DISCOs), four Generation
Companies (GENCOs) and a National Transmission Dispatch Company (NTDC) and also
in (IPP’s). These companies are working under independent Board of Directors
(Chairman and some Directors are from Private Sectors).
 The Companies are administratively autonomous and leading to financial autonomy by
restructuring their balance sheets by bringing their equity position to at least 20
percent, required to meet the prudential regulations and to facilitate financing from
commercial sector (approved by ECC).
 The Loan Liability Transfer Agreements (LLTA) has been signed with Corporate Entities
and execution of loan transfer is complete.
 All Entities have the physical possessions of all their operational assets.
 On 24th Feb. 2007 Ministry of Water & Power notified NEPR Approved Tariff for all
Distribution Companies replacing unified WAPDA Tariff.
 Legal Agreements such as Business Transfer Agreements, Operation Development
Agreement, Energy Supply Agreement, Business Supplementary Agreement and Fuel
Supply Agreement etc. were executed between WAPDA and Corporate Entities to
facilitate commercial operations.
 Regulatory instruments like Grid Code, Distribution Codes, Performance Standard for
Distribution Companies and Transmission Companies were drafted and got approved
from (www.nepra.org.pk) in 2007.

 All major lenders gave their consent for transfer of their loan from WAPDA to Corporate
Entities, thus 326 loan assumption agreements were signed amongst respective
Companies, WAPDA and EAD (Economic Affairs Division) GOP.
 CPPA is established under the coverage of NTDC for payments from DISCOs to IPPs,
GENCOs and NTDC. Ultimately, it will function independently under Federal Govt. and all
forthcoming IPPs will be under CPPA.
Charter of Duties of WAPDA:

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.
 The Authority comprises of a Chairman and three (3) Members working through a
Secretary.
 WAPDA is one of the largest employers of human resources in Pakistan. Over the years
WAPDA has built-up a reservoir of Technical know-how and expertise which has made it
a modern and progressive organization.

PEPCO
PAKISTAN ELECTRIC POWER COMPANY
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.
Before going into further details of the restructuring program, 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, in its MEPCO decided into three regions (GENCOS,
IPPs, and NTDC) and to restructure the entire power sector in the country
 De-regulation of power sector

 Promotion of IPPs
 Restructuring of WAPDA
 Privatization of select corporate entities

Vision:
To make Pakistan Power Sector customer friendly, efficient, able and responsive in meeting tee
electric energy requirements of industry, business and domestic customers, and move to an
energy sufficient model from the current energy deficient scenario, on commercially viable and
sustainable basis, in order to support the high growth economy and to meet the government's
objective of "Power for All".
Mission:
To fully enable the reform and restructuring of the Pakistan Power Sector and to transform the
fourteen (14) Corporate entities (CE's) into autonomous and commercially viable enterprises,
thru induction of effective corporate management, best business and utility practices, and well
engineered systems, and bridge the ever growing supply-demand gap, so as to meet customers
electric energy requirement on a sustainable and environmentally friendly basis, thru best
utilization of resources, in an efficient, ethical and customer friendly manner, with
responsibility to the community and the Nation.
Objectives:
Pakistan Electric Power Company (PEPCO) unveiled new face of Pakistan's power sector with
the crisis management objectives to improve the efficiency of the power sector and to meet
customers' electric energy requirements on a sustainable and environment friendly basis. The
specific objectives of PEPCO are:
 Stop load shedding,

 Constructing new grid stations,
 Reducing line losses; minimizing tripping and theft control,
 Revamping of generation units and to improve customer services and
Development of an integrated automated power planning system for generation, transmission

and distribution to ensure system stability, fault isolation and upgrade relying, metering and
tripping system at NTDC as well as Discos level.
INNOVATION OF COMPANIES TO WAPDA:

WAPDA, As being the largest operating and generating department of this country, was
to managed. So during year 1997, WAPDA was divided into thirteen well handling units
and transmission units , on the basis of their working nature i-e generation, distribution
and transmission.

POWER WING
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;
DISCO (DISTRIBUTION COMPANIES):
Out of thirteen units, nine were Discos, means distribution companies. These are:
1] (LESCO) - Lahore Electric Supply Company

2] (GEPCO) - Gujranwala Electric Power Company
3] (FESCO) - Faisalabad Electric Supply Company
4] (IESCO) - Islamabad Electric Supply Company
5] (MEPCO) - Multan Electric Power Company
6] (PESCO) - Peshawar Electric Power Company
7] (HESCO)- Hyderabad Electric Supply Company
8] (QESCO) - Quetta Electric Supply Company
9] (TESCO) - Tribal Electric Supply Company
GENCO (GENERATING COMPANIES):
Wapda has four GENCOs, which means generating companies. These are:
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
4] Lakhra Power Generation Company Limited (GENCO-4) Headquarter at WAPDA House
Lahore.
5] District Muzaffargarh Punjab.

NTDC (NATIONAL TRANSMISSION & DISPATCH COMPANY): •
NTDC acts as buffer between DISCOs and GENCOs. Any DISCO can’t purchase electricity directly
from GENCOs. Thus NTDC acts as a bridge to distribute the GENCO production among DISCO on
the rate decided by NEPRA (NATIONAL ELECTRIC POWER REGULATION AUTHORITY) and
further checked and controlled by CPPA (CENTRAL POWER PURCHASE AUTHORITY).
DISCOs NTDC GENCOs

MEPCO (Multan Circle)
INTRODUCTION
MEPCO THE MULTAN ELECTRIC POWER COMPANY IS ONE OF THE
BIGGEST DISTRIBUTION COMPANY OF WAPDA. IT'S AREA OF OPERATION
IS FROM SAHIWAL TO SADIQABAD, BAHAWALNAGER TO BAHAWALPUR
AND TOUNSA SHARIF TO RAJANPUR AND BORDERING WITH SIND,
BALOCHISTAN AND NWFP.
MEPCO was formed in 1997. It consist whole part of southern Punjab under its services. Like a
proper limited company, MEPCO also has a Chairman, Board of Directors, Chief executive officer
and Company Secretary, along with the departments of Operations. Maintenance, Constructions,
Planning, Civil, Admin, Human Resources, Computers, Public dealing and Finance.
All of these departments have their own Managers, Deputy Managers, Asst Managers and Office
staff. Further these departments are subdivided into sections and sub sections. As being
entrance of Finance Department, my major concern of report relates to the Finance Department
of MEPCO
MEPCO History

WAPDA
The electricity supply service in Pakistan, initially, was undertaken by different agencies, both
in public and private sectors, in different areas. In order to provide for the unified and
coordinated development of the water and power resources, Water and Power Development
Authority (WAPDA) was created in 1958 through WAPDA Act, 1958.
AREA ELECTRICITY BOARD MULTAN

The local areas electricity distribution service was being performed by various Regions of
WAPDA. Then the Area Electricity Board (AEB) Multan, on the eight AEBs in Pakistan, was
established under the scheme of Area Electricity Boards in 1982, in order to provide more
autonomy and representation to provincial government, elected representatives, industrialists,
agriculturalists and other interest groups in functions of the AEBs.
MEPCO
The environment and structure of the power industry throughout the world are undergoing
dramatic change. The power sector is moving from monopoly to privatization and from
integration to disintegration. To keep pace with this change, the Government of Pakistan
approved a Strategic Plan in 1994 as a consequence of which the power wing of WAPDA has
been unbundled into 12 Companies for generation, transmission and distribution of electricity.
Multan Area Electricity Board was reorganized into one such corporatized entity under the
name of Multan Electric Power Company (MEPCO) with effect from 14.05.1998, with the aim of
commercialization and eventually privatization.
VISION:
To ensure convenient availability of high quality power in area of responsibility, in order to
alleviate the poverty, improve quality of life and make the Industrial and Agriculture Sector

competitive in the World Market.
MISSION
Ensure convenient availability of high quality electric power to the people at affordable price,
retaining financial viability of the Company.
OUR COMMITMENT:
Improve customer satisfaction Reduce Line Losses weed out corruption Increase revenue
generation
MANAGEMENT PHILOSPHY:
 Open door policy for all
 Merit, justice, fair play be the hallmark
 Transparency in all fields
 Accountability of everyone
OBJECTIVES:
 To play an active role to make “Sar Sabaz and Roshan Pakistan
 To facilitate agriculture and industrial sector
 To ensure un-interrupted & stable power supply to all our customers
 State-of-art customer care for entire satisfaction of customers
 To provide electricity to every village in jurisdiction of company
 To establish, construct and operate reliable electricity distribution network

Organization Structure
MEPCO consists of the following eight (08) Distribution Operation Circles, one Construction and
two GSO Circles, as detailed below:
Operation Circles:
1. Multan Circle 6 Divisions / 33 Sub Divisions

2. D.G. Khan Circle 3 Divisions / 12 Sub Divisions
3. Vehari Circle 3 Divisions / 13 Sub Divisions
4. Bahawalpur Circle 3 Divisions / 17 Sub Divisions
5. Sahiwal Circle 4 Divisions / 18 Sub Divisions
6. R.Y. Khan Circle 3 Divisions / 15 Sub Divisions
7. Muzaffargarh 3 Divisions / 16 Sub Divisions
8. Bahawal Nagar Circle 3 Divisions / 13 Sub Divisions
Total 31 Divisions / 147 Sub Divisions
G.S.O. Circles
1. Multan Circle 6 Divisions
2. Sahiwal Circle
Project Construction Circle 8 Divisions
GRID STATIONS
1. 132/11KV 77 No’s
2. 2. 66/11KV 27 No’s
Total 104 No’s
DISTRIBUTION TRANSFORMERS 1, 15,810 No’s
Capacity of Distribution Tfrs 5886.56 (MVA)
DETAIL OF INFORMATION GIVEN BELOW:-

1. Total Length of 132/66KV, T/Lines 4289 KM
2. 132 KV Transmission Line. 2923 KM
3. 66 KV Transmission Line. 1366 KM
4. Total Nos. of Power Transformers 204 Nos.
5. 132 KV Power Transformers 152 Nos.
6. 66 KV Power Transformers 435 Nos.
7. Distribution Transformers 115810 Nos.
8. Capacity of Distribution Transformers 5886.56 MWA
11. Peak Demand of 2010-11 2988 MW
12. New G/S added in 2009-2010 06 Nos.
13. Conversion for 66KV & 132KV 2009-2010 05 Nos.
14. Augmentation during 2009-2010 20 Nos.
15. Extension 2009-2010 15 Nos.

HT / LT LINES
1. 11 KV Feeders 884 Nos.
2. Length of H.T Line 63,233 KM
3. Length of LT Line 42,595 KM
JURISDICTION MAP OF MEPCO
PRODUCT LINES
CATEGORY WISE ELECTRICITY CONNECTIONS
1. Domestic A-1
2. Commercial A-2
3. Industrial B-1
4 Agriculture SCARP D-1
5. Agriculture D-2
6. Public Lighting G-1
7. Residential Colonies H-1
8. Railway Traction I-1

FINANCE DEPARTMENT, MEPCO
Finance department MEPCO, under the guidance of MEPCO finance, controls the budgeting,
Payment, expenditures, pensions, assets, collections, foreign loans, etc of MEPCO, WAPDA.
Everyday its own staff and officials. Description of every department is given in detail ahead.
But first we will look at the official structure of this department with its senior officials and
duties of the staff as being related to financials.
DUTIES OF MEPCO’s FINANCE OFFICER:

As being a financial officer or accountant in MEPCO, one has got following responsibilities to
perform on each and every level. These are:
1. To act as a financial advisor.

2. To act as a compiler of Accounts.
3. To act as a primary advisor.
TRAINNING SECTIONS FOR AN INTERNEE:

As being an internee, finance department has offered us training in the following sections:
1. Banking & Imprest
2. Budget & Corporate Planning
3. Tax Cell
4. Pre-Audit
5. Assets/Salary Slip
6. Pension Cell
7. Compilation
8. Receivable/Payable
9. Audit Cell
10. Establishment
11. Admin
We spent recommended span of time in each section in order to get trained in the deep work of
finance activities in this every department. Details of each section are explained as this report
proceeds.

FINANCE DEPARTMENT
The Finance Director is working under the administrative control of Chief Executive Officer of
MEPCO Multan. The function of this office is to obtain data from Operation Divisions and to
reconcile and preparation of consolidated report & financial date of the company. The Finance
Director is responsible for preparation of company’s Profit and Loss Accounts, Balance Sheet
and Cash Flow statements, to control the Financial system of the organization, Mobilization of
funds, Generation of funds and usage and allocation of funds as required by the Company’s
Ordinance 1984, Income Tax monthly, Annually Statements, Income Tax Returns, Payment of
Advance Tax on Quarterly (Turnover Tax) according to the Income Tax Ordinance, 2001
Monthly Sales Tax Returns , Monthly withholding Sales Tax Statement to the Sales Tax
Department are also dealt in the Finance Departments.
The Finance Director also pass & paid different nature of bills like supply bills, contractor’s bills,
employees claims etc. and approves the financial implications & Budget provisions during the
vetting process of the files of purchase of material. This office is also responsible for preparation
and control of overall Budget of the Company and other Divisions of the Company on monthly,
half yearly & on annual basis. The revenue of the company which is collected by the authorized
bank branches and transfer to Main accounts of the Company, is also maintained by the Finance
Director & issues the funds to the respective division as per their requirements
TYPES OF SECTIONS:
1. Banking & Imprest
2. Budget & Corporate Planning
3. Tax Cell
4. Pre-Audit
5. Assets/Salary Slip
6. Pension Cell
7. Compilation
8. Receivable/Payable
9. Audit Cell
10. Establishment
11. Admin

BANKING & IMPREST SECTION
BANKING:
In banking collection of revenue in shape of electricity bills are deposited in different banks.
This section control and over watch whole activities of banking procedure. This section
monitors collections of Electricity Bills, Security Deposits, RCO fees, and other receipt as well as
remittance of collection in to Main Branches of Company at Multan.
If any bank fails to remit the company’s fund in time, this section ask for such omission and
charged interest for late remitted of company’s fund. This profit is called Penal Profit. This
section also deals with the reconciliation and related matters with banks. Moreover, this section
releases funds to the different Accounting Units of the Company. All the Bank branch and Post
Offices are allowed to collect the funds on behalf of MEPCO.
BANKING RECONCILIATION:
The summary of collection which known as”C P 48” prepared in and by AM (CS). This summary
is reconcile with bank statement and after preparation of reconciliation it has been sent to head
office Lahore and all this procedure done and handled over the banking section:
REVENUE COLLECTION:
This section collects revenue from different departments and remitted top the Head quarters.
Billing revenue is at the top, which is a collected from the consumers in almost 80 lower and
also Main and Feeding branches like 25 Bank branches and Post offices as well. This final
revenue is sent MEPCO monthly. Plus there is a service level Agreement according to which each
of these branches Charge some amount to MEPCO per bill and if any Bank fails to clear MEPCO’s
accounts by the end of the month, it will pay MEPCO by following Formula: Amount retained ×
0.00045× days (by which payment has been delayed)
Further such accounts are not allowed to be operated via cheques books and these are not
issued for such accounts. Further revenue collection summary is known as CP 48.
IMPREST:
Amount which has been withdrawn from collection for meets of monthly expenses, it is known
as Imprest.
It is described by “Finance Director” or “Chief executive” within described limits.
IMPREST CASH BOOK:

In cash Book daily payments and cash used entries has been written by the cashier. This
Imprest procedure has also handle by banking section but it is a different working way but also
relates it.
Cash has been used for:
A] Regular Expenses (Such as allowance and Salaries).

B] Contingent Expenses (this type of expenses demand is made and approved from the
authority)
BANKING FUNCTIONS:

1. Collection of Electricity Bills from collecting branches and transfer to main designated
banks account and finally remitted to Lahore.
2. Cash Management of funds.
3. Maintenance of L/C’s which are established against purchase orders.
4. Preparation of daily Remittance Report.
5. Preparation of Daily Bank Position.
6. Transfer of funds from one bank account to another bank account on need basis.
7. Preparation of Bank Reconciliation Statement and follow up for adjustment in various
AM (CS) and Banks.
8. Disbursement of funds to field formations to meet the O&M requirement of Company.
9. Supervision and Maintenance of Imprest of 80 Accounting Units.
10. Arrangements of funds from Govt. for Village Electrification through AGPR
11. (Accounting General of Pakistan Revenue)
12. To deal with statuary Govt. Internal auditor.
13. Correspondence with Head Office, Field formation and Banks.
BUDGET &CORPORATE PLANNING

This section operates two types of budgets:-
1. OPERATING BUDGET

2. CAPITAL BUDGET.
1. OPERATING BUDGET:
Operating budget consist of the following types of budget

I. Operating Expense Budget
II. Operating Revenue Budget.
I. OPERATING EXPENSE BUDGET:
Operating expense budget consist of

General establishment
Maintenance.
a) GENERAL ESTABLISHMENT:
General establishment consist of the following budgets.

i. Salary (pay and allowance)
ii. Free electricity supply
iii. Medical free supply
iv. Office expense
v. Telephone bills
vi. Gas bills.
vii. Traveling Allowance bills
b) MAINTENANCE BUDGET:
Maintenance consists of the following type of budget.

i. Insurance
ii. Vehicle expenses
iii. Repair and maintenance of building
iv. Line Maintenance.
II. OPERATING REVENUE BUDGET:
Operating revenue consist of the following budgets

i. Sale of electricity
ii. Hydel surcharge
iii. Fuel adjustment surcharge
iv. Additional surcharge.
2. CAPITAL BUDGET
Capital budget consist of the following type of budgets
i. System augmentation program
ii. Development of power
iii. Energy loss reduction
CAPITAL RECEIPT
Security submitted for the new connections is treated as capital receipt.
BUDGET PREPARATION

Estimate of operating budget and system augmentation program are prepared in the budget
section. The estimate is send to the Board of Director and then sent to the authority (WAPDA
house) for approval. If any objection is there then it is try to remove than sent to MEPCO LTD
MULTAN and then budget section distribute the approve budget to the field offices, accordingly.
TAXES SECTION
Tax section has been established to fulfill the requirements of Income Tax Ordinance, 2001 as
applicable to corporatized entity anywhere in Pakistan. WAPDA is exempt from the levy of Tax
but in the current scenario, MEPCO, being Limited Company, is payable to Tax liability as

prescribed to corporatized entity and according, even in case of loss MEPCO has to pay
Minimum TAX of its Turnover to the Tax Department.
The Federal Board of Revenue (FBR) has recently allotted National Tax Number (NTN) and
Sales Tax Registration No. (STRN) to MEPCO.
MEPCO was exempted from any type of tax deduction. Since 24 February 2007 from this date it
has been valid. Because MEPCO passing the loss period from 2007 and currently it also
generates loss. And now GOVT, give subsidy to MEPCO.
FUNCTIONS OF TAX CELL:

1. Deduction of Tax:
Above Rs 300,000 tax exempt 5%.
2. Deposit of Tax:
Deducted tax deposit in FBR (Federal Board of Revenue) by its account in NBP. And
also interchange Tax deducted copies one another circle.
3. Compilation of All Information:

On the behalf of Company MEPCO compile the data under Sec 149, 2010 on eFBR
folder present on FBR.gov.pk
TYPES OF TAXES:
1. Income Tax (Services)

2. GST General Sales Tax (On Goods)
INCOME TAX (Sec 165):

Income tax is deducted from the employ’s salaries and submission to the Govt,
1. Salary exemption is started from Rs 300,000/- .

2. Free electricity units (500 units).
3. Bonuses.
Monthly withholding Tax statement under the Income Tax Ordinance, 2001.Annually
withholding Tax statement of MEPCO Income Tax Ordinance.
Replies of Income Tax Notices issued by the Tax Department under section 161/205.
SALES TAX RETURNS:
Sale tax is deducted on goods purchase 15%. This tax only paid by final consumer but Govt.
Give subsidy before final consumer between two means of customers. On material supply the
supplier purchase 3.5% and services 6%.
Monthly Sales Tax Returns of MEPCO under the Sales Tax Special Procedures Rules, 2007,
issued under the Sales Tax Act, 1990.
Claim Refund of the claim of Subsidy of GST from the Ministry of Finance, protected by the
Government of Pakistan.
Monthly withholding GST Statement under S.R.O. 660(I)/2007 called as the Sales Tax Special
Procedure (Withholding) Rules, 2007.
E-Enrolment and e-filing of Tax Returns

MEPCO has recently enrolled its name and now all the Tax Returns of MEPCO are being
submitted through e-filing to the Tax Department and in this connection MR: Syed
Mushtaq Hussain Bokhari (Finance Director) & Mian Answer Mehmood (Manager
Corporate Accounts) and has played important role.
If consumer use less than 500 units Govt, gives subsidy and Ministry Finance refund it.
But if a consumer
PRE-AUDIT
As the name indicates it is audit before execution of Transaction and before the Payment is
made. This procurement is related to M.M.Distribution & M.M.STG. E.g. New Grid Station, New
Heavy Lines, Big Transformers and Bankers Procurement.

Pre-Audit is a section of Finance & banking Dept. the function of this to PRE-Audit MEPCO Dept.
and also the whole Region as a third party. For procurement all documents are
Pre-Audit in this section. The Pre-Audited section deals with the internal audit of the MEPCO. In
case when the MEPCO is looking forward at the purchase of any Asset or Machinery for
expanding its operation the estimates of the total cost of the project are passed over to the Pre-
Audit section. The Pre-Audit section then verifies the available Budget with the estimated cost
of the project, hence rejecting and accepting the proposal.
PAYMENT:
Payment can be direct or via L.C. it is also Pre-Audited before Payment is made. Payment to
Contractors is also audited.
MODES OF PAYMENT:
There are two modes of Payment by which the payment is carried out;
1. Cross Cheque.
2. Letter of Credit.
CIVIL WORKS:
Measurement Books are Pre-Audited and also Civil Works.
CONTRACT AWARDING:
Contract Awarding is also Pre-Audited e.g. Tenders Quotation are also checked.
CLUSTERING AND SHIFTING OF METERS:

Clustering and shifting of Electricity meters claims audited.
VEHICLES:
Vehicles related activities are Pre-Audited e.g. POL of vehicles and LOG Books of vehicles are
checked and audited.
DEPRECIATION:
Depreciation is charged on the straight Line Monthly Basis of Fixed Assets as 3.5% per Month.
Fire and Safety, Transport Equipment 10%, Building 2%.
FUNCTION OF PRE-AUDIT CELL:

1. Work behalf on the Chief related to commercial directorate or also on the Asst.
Manager.
2. Behalf of the Chief Executive to pay finance dept. and Pre-Audited the doc. And
work manual code.

3. Prepare the Book of Financial powers (What are the Powers Exercise on the
team).
4. In case of approved claim Pre-Audit the work and forward to Internal Audit.
5. Heavy Volume Procurement made in case of1000 items.
6. Supply civil work (Against 1000 vehicles, Contractor ship, Polls, Lines).
7. Work in the district through Multan to Sahiwal).
8. Pre-audit the various claims of dept. as well as whole region as third party. (All
the Consumer, District, Central, and South Punjab).
9. Prepare Documents of Specific Nature by Specific rules & Regulation Procedure.
10. Maintenance done by the XEN Dept.
FUNCTION OF AUDIT FOR PROCUREMENT:

 Tender Issue.
 Purchase Order (Terms and Condition apply).
 Manufacturer supply the Material.
 MIC (Material Inspection Committee) issue I.C (Inspection committee)
 Accept acne. Case gives GRN (Goods Receive Note).
 Approved Claim nessaccary for Procurement Plan.
 Pass to Pre-Audit Section and pass to Pre-Audit.
 Payment to Supplier by Check and Balance System.
 Material Management done Procurement Plan

DEPOSIT WORK:
Work is done on other behalf. Procurement is the procedure to see the Stock, When the Tender
is issued.
On the accepted rate material purchased order is given to the selected co
In case of good inspection Store Authority approved the Order
L.M (Letter of Material) is Approved.
Pre-Audit check payment is done.
Fund demand is approved by D.F (Director Finance).
Payment is transferred through cheque.
INVOLVEMENT:
 Junior Clerk.
 Acceptance/Clerk/Purchase Inspection Order.
(In case of Acceptance pass to Account Asst.)
(In case of Rejection return back to Tender Co.)
 Account Officer (to maintain Accounts sheets).
 Pre-Auditor (In case of 50,000 limits). / Deputy Manager (Above 50,000 limit).
 Demand Preparation.
 Account Officer.
 L.D. {Late Delivery Charges, (2% under 5 Months Payment), 10%(After 5
months)}.
 Supply Bill (Against Deposit/Against Budget).
 Budget section (To prepare Budget).
 Asst Manager.
 Finance Director (Banking Sector).

ASSET/SALARY SLIP
The things that are in the possession of any company are called its assets. There is no concept of
Intangible Assets in MEPCO Every asset is tangible here.
This section is established to deal with all the movable and immovable assets of the company.
Now, the concerned Divisions monthly submit the Assets Sheets to the Section to calculate the
depreciation on Straight Line monthly Basis. Asset section of MEPCO Finance Directorate and
Maintains record of various assets held by MEPCO.
Company charges depreciation on its asset by using the following rates.
Asset Tile Depreciation Rate
Buildings 2%
Office Equipment 10 %
Distribution Equipment 3.5 %
Other plant and equipment 10 %

.
Vehicles 10 %
TYPES OF ASSET:
1. LAND: Land held by MEPCO is of two types.
a. FREEHOLD LAND:
This land has been purchased by MEPCO and in its Property used for various
purposes.
b. LEASEHOLD LAND:
MEPCO also has acquired Land through Lease Agreement from different
organizations.
MEPCO has leased the Land from

RAILWAY: P.C. Pool Lodhran Lahore.
MILITARY: Garden Town Subdivision Multan, MESCO Power near Aziz Hotel Multan.
GOVT OF PUNJAB: D.M Operation Sahiwal
In Addition to these almost 105 Grid Station in MEPCO land.
2. BUILDING:
Building of MEPCO include
1. Operation Offices Building (Non Residential).
2. S.S&T Buildings.
3. Residential Buildings.

3. OFFICE EQUIPMENT:
Computer Furniture and all the accessories are including in office equipment.
4. OTHER PLANT & EQUIPMENT:

T&P (Tools and Plant) which are used by Subdivision e.g. Gloves, Medical Equipment etc.
5. VEHICLES:
All vehicles used MEPCO are its asset and record is maintained in asset section.
6. DISTRIBUTION EQUIPMENT:
These Equipments can be held by various offices are as follows.
Distribution Plant Assets
Account Title Account Code
132 KV Grid Station Equipment 10601
66 KV Grid Station Equipment 10602
132 KV Distribution Lines 10605
400 V Low Tension Line 10609
Under Ground Conductor and Devices 10612
Distribution Transformers (11 KV/400 V) General 10613
Service Drop General 10614
Meters-General 10615
Distribution Transformers (11 KV/400 V) Industrial (0613) 10616
Service Drop Industrial 10617
Meter-Industrial (010615) 10618
Distribution Transformers (11 KV/400 V) Tube well (01613) 10619
Service Drop-Tube well (010614) 10620
Meter-Tube well (010615) 10621
Service Drop-Renovation (010614) Meter-Renovation (010615) 10623
Meter-Renovation 10624
Street Lighting and Signal System (010616) 10625
High Tension Lines Renovation (010617) 10626
Low Tension Lines Renovation (010618) 10627
High Tension Transformers (11 KV) 10628
Village Electrification (PWP, TWP) (010619) 10629
11 KV Distribution Lines (Deposits) 10630
Village Electrification (Capital) 10631
Punjab Government 10632
Transformers Transferred From Scrap 10634
MISCELLANEOUS EQUIPMENT
Arm’s Equipment, Rest Houses, Medical Equipments, Construction Equipment, Laboratory
Equipment, Work Shop Equipment, Transport Equipment.
SALARY SLIP

It contains the whole detail of salary of officers. It includes detail of Allowances. It is only made
for Officers. Basic Pay Scale of Officers =16.
Divisional Accountants are not gazette but their BPS is 16. Above grade 16 Salary Slip is Issued
to Account Asst.or above.
OFFICERS:
The employ that are gazette and declare Officers by authority with Scale of 16 and above are
mentioned for Salary Slips. There Service Book is closed or not maintained. Salary Slips is also a
document of this file. “Services Statement”. It contains whole information’s of service life
(Changed, Transfer, etc)
OFFICIALS:
These employees who are not gazette and declared as officials known as Staff. There will be a
service book maintain their service record.
There is no Salary Slips involved for Staff and their pay is prepared by Pay Fixation Cell.
FUNCTION OF SALARY SLIP CELL:

1. Basic Pay Scale/ Scale revised slips maintain with time to time Govt. increments and
Allowances all are adding in it.
2. All Allowances given to employ Asst. as 15% ARA (Adhoq Relief Allowance).
3. In case of Promotion/Punishment issued Extend/Short slips.
4. In case of any change of Post/Position Increment Slips issued to the Officers.
5. At annual Increment Revised Salary Slips issued to Officers.
6. Transfer Ordering Certificates/Transfer or Posting/Charge Selection/charge
Assuming/Taken over Charge or Charged Received. In all cases Salary slips changed and
new salary Slips issued to Officers.
7. House/Convence Allowances, Last Pay Scale revised or changed all are needed for
issuing Slips.
REVISED PAY SCALE:

1. 1977
2. 1981
3. 1983
4. 1987
5. 1991
6. 1994
7. 2001
8. 2005
9. 2007
10. 2008
Allowances:
1. 50% Ad-hoc Relief Allowance(Running Basis)

2. 20% Special Allowance 1st, July 1999 (On basic Pay Scale)
(Both are freeze in 2001)
3. SRA (Special Relief Allowance) 1st July 2003 and Freeze in 2005.
4. 1st July 2004 ARA (Adhoq Relief Allowance) 15% and freeze in 2005.
5. 15% dearness Allowance 1st July, 2006 and freeze in 2009.
6. 50% ARA (Ad-hoc Relief Allowance 2010 on Running Basis and still continues.

PENSION CELL
This Cell has been established in MEPCO from WAPDA in 1 st Nov 2002. It gives Pension to 31
Divisions monthly.
“PPO BOOK” It is stand for “Pension Pay Order Book” it is prepared for retired employee and
signed by the D.M (OP) and Accountant.
By Services giving benefits it’s called “PENSION SERVICES” for working more than 10 years at
permanent post. Post-Retirement benefits that an employ might receive from some employer. A
Pension is essentially compensation received by the employee after he/she has retired.
A pension is a steady income given to a person (usually after retirement). Pension is typically
payment made in the form of a gurrented Annuity to retired or disabled employee. Some
retirement plan (or Superannuation) designs accumulate a cash balance (through a variety of
mechanisms) that a retiree can draw upon at retirement, rather than promising annuity
payments. These are often called Pensions. In either case, a pension created by an employer for
the benefit of an employee is commonly referred to as an occupational or employer pension.
Labor Unions, the government, or other organizations may also fund pensions.
Occupational Pensions are form of deferred compensation, usually advantageous to employee

and employer for tax reasons. Many Pensions also contain an insurance aspect, since they often
will pay benefits to survivor or disabled beneficiaries, while annuity income insures against the
risk of longevity.
CONDITIONS:
1. If service is less than five years than there was nothing too paid.
2. If service is less than ten years but more than five years than gratuity will be paid.
(Basic Pay × 1.5×Service Year)
3. If service is more than ten years same ratio of pension will be given. GLI (Group Life
Insurance) paid of employee died during service.WWF (WAPDA Welfare Fund) it can be
withdrawn in any special case.
TYPES OF PENSIONS:
1. SUPPERANNUATION:
This pension has been made for age of 60 years of employee after retirement.
2. RETIRING PENSION:
For this type of pension service must be for 25 years.
3. INVALID PENSIONS:
In case of disability factor involved.
4. FAMILY PENSION:
In case of death of employee.
5. GOVT. RETIREMENT:
At age 60 Govt must be retire the employee.
6. COMPULSORY RETIREMENT:
In any case of punishment Employee fired from its job.
7. COMPENSATION PENSION:
In case of ending section, post than offer employee to take another post or retirement.
CALCULATION FORMULA’s:

1. SELF RETIREMENT PENSION:
Gross Pay:
Last drawn × Qualifying Service ÷ 30 × 70/100
(If service life is 30 years than multiplied by just 30 than give 70% of basic pay. )
Grass Pension divided into two parts.
1. 35% of Grass Pension × 12 × Age Factor it has been retained.

2. 65% of Grass Pension × 12 + (Time to time increase).
These all paid on monthly basis.
2. DEATH DURING SERVICE:

Basic Pay + (Qualifying Pay) ×70%×30
And 25% of Gratuity Fund paid to Widow.
Now rule is revised
1. 75% of monthly Pension if she/he has children less than 18 years.
5% of monthly Pension if she/he has children greater than 18 years.
3. DEATH AFTER RETIREMENT:

Commutation has not given to widow.
1. 50% of monthly Pension given to widow.
2. It can be paid also to made child till 21 years.
3. It can be paid also to female till her marriage.
NOTE: Pension can be getting from any MEPCO office Region in whole Country and bill will be
sent to related office of Pension reimbursement.

COMPILATION CELL
This section deals with the compilation of Company’s Accounts on Monthly basis. This section
maintains different books of accounts. The Divisional Accounts Officers (DAO) is the
representative of the Finance Department in the Operation Division and deals with the accounts
matters in the Field Offices. The DAO submitted the monthly accounts to the compilation section
of the Finance Department and this section has to consolidate the Accounts according to the
International Accounting Standards (IAS). At the end of each month they prepare Trial Balance,
Profit and Loss accounts, Balance Sheet, Cash Flow Statement and detail of accounts of different
heads.
In compilation there are 81 account Units and 31 Revenue Offices (RO) include Asst. Manager
and Customer Offices and also 31 Operational directors.
FUNCTION OF COMPILATION CELL:

 To prepare Trial balance, profit & Loss, and Balance Sheet.
 Deputy Manager Operations and executive Engineer Sahiwal to Sadiqa Bad 4 Regional
Stores operate.
 Work between Head Offices, Chief executive, Material Management, Independent units.
 Correct the Trial balance, receiving them and main.
TRIAL BALANCE:
It is main and important result of accounting books. The Trial Balance can be prepared monthly,
quarterly and annually.
There are two main types of Trial Balance.
1. Cumulative Trial Balance:

2. Monthly Trial Balance.
FINANCIAL ACCOUNTS ANALYSIS:

The financial accounts analyze the most important and result of accounts work annually.
There is made final accounts statement.

1. Profit & loss accounts.
2. Cash Flow Statement.
3. Balance Sheet.
.
RECEIVABLE/PAYABLE (IOT)

Debit and credit advices received from other offices as well as issued to other offices are called
IOT (Inter Office Transaction) that also named Receivable and Payable cell. It works on office to
office and also DISCO’s to DISCO’s level.
It can also be made at the condition of such as one employee working at other place and being
get benefits from another place then such transaction have been made by this section known as
receivable and Payable.
It may be salaries, advances, free supply, and Pension.
FUNCTION OF IOT:
Inter office Transaction comprises of following major components.
 Debit advices received and issued.

 Credit advices received and issued.S.S.Cheque received and issued.
 Work with Consignee Stores(D.G.Khan & Sahiwal, Bahawalpur to Multan)
 Regional Stores to direct Supplier.
 Disco’s, NTDC exchanges statements on demand.
 Centralized Payment along GRM (Goods Receive Note) always from Head Office.
 Late delivery Charges, and Dr. Cr. Statements always issue from IOT (Inter Office
Transaction) that is also deal in Compilation section.
WORKING:
Centralized the cash position in DISCO’s and NTDC, and gives SS (Super Subscribe Checque) to
control the movement of cash. And surpass the material from one to another store and in
emergency situation material taken from any DISCO’s and give SS cheque against payment
PROCEDURE:
Payable and receivable is always co. to co., Head office to head office, DISCO’s to DISCO’s,
Quarterly statements of accounts, six months transactions some consumers pay bill in another
place of co. Than evident note is issued and above stents also issued by payable and receivable
section. Also S.S.Cheques for store material issued.
Units Receivable (MEPCO) Dr.

Units Payable (LESCO) Cr.
End of month transaction.

Units Payable (LESCO) Dr.
Units receivable (MEPCO) Cr.
AUDIT CELL

The Main purpose of internal audit is to prepare the books of accounts according the
requirements of Government Audit Party. Accordingly, this audit is completed before the
commencement of Government Audit. The internal audit division conducts the audit of the
company’s revenue accounts continuously throughout the year. The audit of the accounts is
conducted through three types of audit parties.
1. LOCAL AUDIT PARTIES (LAP):

It is also Called Revenue Audit. The local audit parties audit the electricity revenue accounts on
annual basis throughout the year in the office of Asst. Manager Customer Services (CS). There
are 21 local audit parties to conduct the revenue audit of the revenue offices headed by the
assistant audit officer and 4 to 6 Audit assistants, to conduct the audit. These parties are rotated
in all the revenue offices of the company. These office parties during the course of audit pointed
out the cases of less billing, omission, and commission through audit notes. After discussion
with Asst. Manager (CS) and Deputy Manager (Operation) or in some cases with Manager
(Operation), the audit notes are accepted and debited the amount of less billing to respective
consumer for recovery.
2. INTERNAL AUDIT/PRE-AUDIT(STOCK VERIFICATION BEFORE PAYMENT):

The Manager Internal Audit (IA) has maintained its schedule for verification of stocks of Stores
on annual bases. The Deputy Manager Audit deputes Stock Verifiers for verification of Stock
Material. They physically check and verify the Material and reconcile with stock register of the
Store and also submit stock verification report wherein pointed out any shortage and surplus of
material in the Stores at sights.
Post Audit by Finance Directorate (After Payment)
The Post Audit Party works under the control of the Finance Director. The main purpose of the
audit is to check and verify that all the payment, cash transaction, subsidiary books and cash
vouchers etc. are being kept and maintained according to the Rules and regulations as
prescribed by the company.
3. EXTERNAL AUDIT(GOVT AUDIT):

According to company’s ordinance 1984, a Chartered Accountant must audit the financial
statements of a Public Limited Company. For this purpose Board of Directors has appointed the
External Audit Party. M/S KPMG Taseer Hadi & COMPANY Chartered Accountants for
conducting the statutory or external audit of the company.
STATUARY AUDIT: This audit is taken by audit companies which are the most reliable into top
ten chart, Currently TASEER & HADI ( KPMG) CO. is Audited the MEPCO. It has been Prepare
final report for Public and performance of working of companies by the Govt Order.
FUNCTIONS OF AUDIT CELL:

 Working with Internal/External/Govt audit under the rules and regulations by
competent authority.
 Check the responsibilities of work, Approval. Authority who pass the Bill. Whether its
ordering co. or not?
 On passing Bill check the work competency, powers, delegations of powers, competent
authority for approve bill.
 Regularize the excess expenditure.
 Checking payment slips of Banks.
 Checking Bank accounts of MEPCO payment under the rules and regulations.
 Checking expenses record general/Ledger books of Payments under the rules and
regulations.
 Checking the Division office voucher under the rules and regulations.
 Contractor Pay/Cash Book/Petty Cash/date wise checking after pre-audit.
 Checking regularity and de-regularity.
 Checking delegations of financial powers.
 Checking Bills under rules & regulations.
 Point out the de-regularity issue in audit report.
 Taking recoveries from payee’s and in receiving case write off from recovery books.
ESTABLISHMENT

An establishment is an enterprise engaged in economic activities with the assistant of at least
one hired worker on fairly regular basis. Establishments are further classified into Directory
establishments (DE) and Non-Directory establishments (NDE) on the basis of number of
workers. A directory establishment is one employing or more workers (including household
and hired) daily on a fairly regular basis.
VOUCHERS:
This document is support of each transaction is called as voucher. Each activity / transaction are
to be recorded on the voucher. There are four types of vouchers...
CASH VOUCHERS:
All the vouchers pertaining to case are called cash vouchers. The vouchers regarding cash
receipt are called cash receipt vouchers while the vouchers regarding cash payments are called
cash payment vouchers.
BANK VOUCHERS:
All the transaction relating to Banks is recorded on the vouchers called as Bank Vouchers. The
voucher regarding the receipt through Banks are called Bank Receipt vouchers and the
vouchers regarding the payments through Banks is also called Bank Payment Vouchers.
JOURNAL VOUCHER:
All their transaction are recorded on “Journal Vouchers” e.g. regarding rectifications of errors,
miscellaneous classification, depreciation of fixed assets, provision of bad debts.
It also deals with throughout payment of an employee e.g. salary, medical allowance, TADA bills,
house rent, marriage fund and other benefits etc by establishments.
SALARY:
It includes basic pay according to pay scale chart +House Rent allowance in cities Multan,
Lahore, and Bahawalpur 45% and other cities 30%.
TRAVELLING AND DAILY ALLOWANCE:

Special daily allowance will be paid in big cities such as given below. Ordinary daily paid except
big cities and other places.
Special Daily Ordinary daily

1 to 4 200 1 to 4 125
5 to 10 220 5 to 10 155
11 to 16 365 11 to 16 280
17 to 18 640 17 to 18 500
19 to 20 825 19 to 20 625

CONVEYANCE ALLOWANCE:
Conveyance allowance paid only in big cities for example Multan, Bahawalpur, and Dera Ghazi
Khan.
But special daily Allowance is not paid in D.G.Khan.

1 to 4 Rs 240
5 to 10 Rs 460
11 to 15 Rs 680
16 to above Rs 1240
MEDICAL ALLOWANCE:
This allowance is in two types
i. Medical Facility
In medical facilities and green book has been made.
ii. Cash medical Allowance
In cash allowance get cash and white book has been made, and medical facility
get in emergency, officers are exempt this allowance.
MARRIAGE ALLOWANCE:
Employee personal marriage amount is fixed as 20,000 only. Employee can get this allowance
for his daughter marriage, and employee widow get allowance for two daughter’s marriage.
SCHOLARSHIP:
It has been given to the brilliant child of employee who top in school, college, university, on
different rates.
PURCHASE OF USUAL ASSECCORIES:

Establishment also sanctions, quotations, goods are being cheeked and passed by it according to
rules. Purchase made from GST shape.

ADMIN CELL
This section controls or look after all kinds of documents, files and proposed letter issued.
Receiving posts and note it on a separated date this is called as dairy and this posts check by
administrator and distributor to relative offices.
DISPATCHING:
Dispatching of notes also noted on register as same receiving posts procedure.
All services books and personal files are also watch over and handle by ADMIN.
MEPCO GENERAL RULES:

It is different rule of leave, medical and travelling etc described according to acts and law.
Leave has been also mentioned and sanctioned by admin according to rule of 1982 under the
Act of 1958.
DOUBLE ENTRY BOOK KEEPING SYSTEM:
The double entry book keeping system is based on the principle of duality, which means that all
events of economic importance have two aspects (i.e. effort and reward, sacrifice and benefits,
source and uses) that offset or balance each other. In double entry system each transaction must
be recorded twice in such a way that the total amounts of debits and credits must be equalizes
each other. All accounting systems, no matter how sophisticated, are based on the principle of
duality.
ACCOUNTING SYSTEM OF ORGANIZATION:

In MEPCO there are two accounting system.
1. Divisional Level Accounting system
2. Head Office Accounting System
1. DIVISIONAL LEVEL ACCOUNTING SYSTEM

In Divisional Offices, the Divisional Accounts Officer (DAO) works for preparation of Accounts.
At Division level there are three accounts which DAO prepared.
i. Journal Voucher
ii. Ledger Statement
iii. Trail Balance
All the voucher are prepared at the sub-division level then lager and trail balance are
maintained by the DAO.
2. HEAD OFFICE ACCOUNTING SYSTEM

Following are the main statements prepared in the Head Office.
i. Trail Balance
ii. Balance Sheet
iii. Profit & Loss Account
iv. Statement of Owner Equity
v. Cash flow Statement.
All these statements and accounts are prepared under the separate control in the Finance
Department. After the consolidations of Accounts these statements are checked by the Finance
Director and sent to WAPDA House, Lahore for information and critical review of the financial
position of the Company.
FINANCE SYSTEM OF THE ORGANIZATION

There are three sources through which the finance is collected.
A. Revenue Collection
B. Security Collection
C. Capital Collection.
A. REVENUE COLLECTION
The collection which is made through the electricity bills is called Revenue Collection. All the
Banks branches and Post Offices under the jurisdiction of the Company are allowed to collect
the Electricity Bills. A separate Bank Account and Cash Book is maintained for the purpose and
Divisional Offices are not allowed to withdraw any amount from the Electricity Collection
Accounts, if they need any funds for payment of cash they are required to prepare and submit
the fund demands to the Finance Directorate along with the relevant payments Vouchers.
B. SECURITY ACCOUNT
The amount of Security which is paid by the consumer for the new connections is transfer in the
name of security account.

C. CAPITAL CONTRIBUTION
The amount deposited by the consumer for the new connections or the cost of capital good like
poles, meters and cables for the meters is called Capital Contribution Accounts and the amount
is transferred to the main accounts of the Company and the fund of this account is utilized only
for “purchase of Material under Capital Contribution” Head of Accounts and the process of
issuance of fund to the relevant Account is strictly watched by the Finance Director and Budget
Section of the Company.

FINANCIAL ANALYSIS OF MEPCO
FINANCIAL OVERVIEW OF MEPCO
FINANCIAL RESULTS DURING 2008-2009
Revenue (Rs. in Millions)
Sale of Electricity 62,745.023
Rental & Service Income 182.537
Amortization of Deferred Credit 1,009.089
Other Income 1,592.379
Total Revenue 65,529.028
EXPENSES
Cost of Electricity 61,886.892
Operating Expenses ( depreciation) 6,637.902
Financial Charges 304.739
Tax -
Total Expenses 68,829.533
Loss for the year (3,300.505)

FINANCIAL POSITION AS ON 30.06.2009
ASSETS (Rs. in Millions)
Tangible Fixed Assets 39,704.222
Long Term Advances / deposits 23.281
Current Assts 26,123.094
Total Assets 65,850.597

Equities & Liabilities
Share Capital & Reserves 4,779.078
Long Term liabilities 16,220.889

Current Liabilities 44,850.630
Total Expenses 65,850.597

EXISTING STRENGTH UP TO 01/2011
S.# Category Distribution GSO Total

01 Officers Gr-18 & above 164 10 174
02 Assist: Managers 263 31 294
03 Assist: Managers (C.S) 27 0 27
Total 454 41 495
04 LS-I 487 23 510
05 LS-II 408 5 413
06 SSO-I 1 112 113
07 SSO-II 2 212 214
08 Foreman 3 21 24
09 LFM-I (Foreman) 31 0 31
10 LFM-II (Foreman) 46 1 47
11 Commercial Assistant 620 0 620
12 LM-I (Lineman) 1556 62 1618
13 LM-II (Lineman) 1542 78 1620
14 ALM (Asstt: Lineman) 4165 53 4218
15 Meter Reader 1665 0 1665
16 Bill Distributor 403 0 403
17 Chowkidar / NQ 888 43 931
18 Clerks all types 955 25 980
19 Other Staff 2072 1345 3417
Total 14844 1980 16824
Grand Total 15298 2021 17319

CATEGORY WISE NUMBER OF CONSUMERS AS ON 12/2010

Tariff Pvt. Govt. Total
Domestic A-1 3603505 19247 3622752
Domestic Temp E1 (1) 752 5 757
Total 3604257 19252 3623509
Commercial A-2 394168 1241 395409
Commercial Temp E1(2) 914 15 929
Total 395082 1256 396338
Industrial B-1 25233 690 25923
Industrial B-1 TOD 27 0 27
Industrial B-2 4871 269 5140
Industrial B-3 26 3 29
Industrial B-4 0 0 0
Total 44874 1848 46722
Bulk C-1 (A) 29 68 97
Bulk C-1 (B) 115 153 268
Bulk C-2 (A) 6 15 21
Bulk C-2 (C) 0 0 0
Bulk C-3 0 1 1
Total 150 237 387
Scarp D-1 970 15 985
Agri: D-2 32541 2238 34779
Agri: D-2 TOD 31010 167 31177
Total 64521 2420 66941
Public Light 471 1134 1605
Residential CLY 106 8 114
Railway Traction 0 5 5

Co-Generation 3 0 3
TOTAL 4109464 26160 4135624
Cash Collection Branches

Select a division to see the cash collection branches

MULTAN CANTT
MUMTAZABAD
CITY
KHANEWAL
MIAN CHUNNU
D.G KHAN
RAJANPUR
VEHARI
BUREWALA
MAILSI
BAHAWALPUR
LODHRAN
AHMAD PUR
SAHIWAL
PAKPATTAN
CHICHAWATTNI
MEPCO ONLINE CONSUMER BILLINNG:

VILLAGE ELECTRIFICATION PROGRESS:
2010-11 (UPTO 12-2010)
SR. ON-GOING PROJECTS TOTAL COMPLETED BALANCE / LEFT

NO. SCHEMES ENDING
OVER
12/2010
1 PWP - I (M.N.A / SENATOR) 491 145 346
2 PWP - II (P.M.D) 3228 1296 1932
3 KPP- I (M.N.A / SENATOR) 13 13 0
4 KPP- II (P.M.D) 242 24 218
5 KPP (MPA) 4 0 4
6 KHUSHHAL PAKISTAN PROG. (DISTRICT 423 286 137

NAZIM)
7 CHOLISTAN DEVELOPMENT AUTHORITY 11 11 0
8 D.O.P ELECTRIFICATION) 2 1 1
9 IN-COMPLETE SCHEMES (P-II) 7 0 7
G: TOTAL :- 4421 1776 2645

DOP / ELR WORKS COMPLETED:
(WAPDA OWN SOURCE)
Sr. YEAR Works Completed Expenditure

No. Incurred
1 2010-2011 HT Feeders 9 104.561 (M)

Up to
12-2010
2 LT Proposals 87 52.517 (M)
Total 96 157.078 (M)

(Tentative

TRAINING:
General Manager (Training) office is functioning at WAPDA House, Lahore and controls various
training centers detailed below: -
a. WAPDA Staff College, Islamabad.
b. WAPDA Engineering Academy (Water & Power), Faisalabad
c. Thermal Generation Training Center, Guddu
d. Hydel Training Center, Mangla
e. Technical Services Group, Lahore
f. 8 Regional Training Centers (RTCs), one at each DISCO
Address:
MEPCO, Khanewal Road,
Multan.

SWOT Analysis:
Strength and weakness are basically occurring in the internal environments of the organization.
It provides the information that in which area we are strong and weak and it provides the
solution how we can overcome the weakness and utilize the strength in a right direction. The
SWOT analysis is a comprehensive and critical overview of the operations, procedures, rules
and regulations, services and other related activities, the analysis include the analysis of MEPCO
in the light of the specific variables which directly or indirectly affect the operations of the
MEPCO. The tool selected for the analysis of organization is SWOT analysis.

It is the moral and professional duty of the directors, managers and executives to overcome the
weakness and convert them into strengths, and get maximum benefits and opportunity from the
prevailing resources.
STRENGTHS:
 The MEPCO top management is the combination of both experience and young energetic
professionals which are proving to be the real strength of MEPCO.
 MEPCO website provides every information about MEPCO to the customers and
investors.
 MEPCO has equipped with the latest technology.
 MEPCO has good relation with different departments.
 The MEPCO employees are locally so, the turnover rate is low.
 The MEPCO has efficient internal audit department, which keep check and balance.
 The MEPCO has experienced of strategic apex and managerial skilled staff.
 Full support from Federal Government

WEAKNESSES:
 The administrative cost of the company is very high due to which the profitability of the
company decreases.
 There is still improvement of technology in the MEPCO like in computers.
 There customer service are not up to mark they have to improve the customer services
to satisfy the customers
 There divisions are not well furnished they have the need to improve them.
 Telecom and Media revolution
 Dependency on suppliers of power generation equipment.
 Loss is occurred last 3 years in MEPCO but there is no control over expenses and
wastage.
OPPURTUNITIES:
 The MEPCO is situated in the region where the customers are large in quantity and other
necessary related product is easily available in the market.
 There is no competitor in the local market, there is a big opportunity to get more share.
 Buyers of MEPCO services are easily available in the local market.
 The extension plan of divisions by the MEPCO is very good to capture the market.
 The MEPCO has maintained better relationship in the market which helps the MEPCO to
increase the customers.
 The strategies of MEPCO are very strong which help them to get advantages over the
competitors.
 Research and development in power generation equipment
 Natural resources to increase water resources and cheaper power
 There are rapid changes in technology of power generation and to coup with it ministry
will have to be planning for the future plans keeping in mind the changes
 New power projects have the bargaining power for higher prices keeping in view the
high demand and supply gap in power sector.

THREATS:
 One major threat to the MEPCO is increasing number of customers day by day.
 Due to fluctuation occur in the supply is permanent threat to the MEPCO.
 There is always a threat the government may impose some duties on the MEPCO.
 Another threat to the MEPCO is change in day by day technology.
 Withdrawal of support from suppliers.
 Curtailment of budget.
 Obsolescence of strategic equipment
 There is not a long list of suppliers in power sector and the suppliers enjoy
monopoly to some extent and they can charge higher and delay supplies as there is
long waiting lists for equipment supplies

LIMITATIONS
 No proper arrangement for electricity they have dames and generators but they are not
work according to the requirement of the MEPCO.
 Sometime MEPCO employee create tens environment in the MEPCO due to their non
cooperative behavior.
 They have provided me knowledge about MEPCO but not according to the requirement
of internship due to much work load on the employees.
 Expensive Furnance Oil is major cause of Expensive Electricity.
OBSERVATIONS
 I have observers that there is need of improvement in the MEPCO Departments working
who still use manual systems.
 Some time the employee doesn’t cooperate with customer they must have needed to
cooperate with customers to create good relationship with them.
 I have also observe that there is no proper dress court of employee in the divisions so,
they have need to follow proper dress court
 I have observed that there is need of safety department or some safety precaution for
employees of MEPCO.
 I also observed one thing that Departments and sections not obey the Audit Committees
that cause the negligence of Misuse data.

SUGGESTION
The following are some suggestions about the MEPCO.
 Management should try creating more understanding between different departments to

increase their productivity.
 The top management should give the authority and flexibility to every manager to make
decisions according to the situation at any time and in the absence of the top manager.
 A proper training should be given to the employees and the workers to enhance their
skills to increase their productivity and utility of the MEPCO.
 All the duties and responsibilities of the employees and the workers should be clearly
defined.
 The computer technology should also be used in decision making as well as in storing
and feeding the data. There should be decentralization in decision making.
 The management should recruit right person for right job.
 The management should here multi skilled workers to get economy of scales.
CONCLUSION
I got a lot of experience in MEPCO. During my internship I come to know that the different
units are working under one umbrella. I have noticed that they are getting the benefits by
minimizing different costs which earlier they were paying due to lack of technology of
computer.
The MEPCO has latest technology for its services and they are serving the local market very
well. MEPCO has open door policy for all tackle all problems upfront. And May be The
Import Electricity Ships decrease load shedding. If Govt. examines the Audit committees
then wastage should be decrease. Merit, justice, fair play be the hallmark Transparency in all
fields Accountability of everyone.

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INTERNSHIP REPORT ON

Internship report submitted to the Bahaudin Zakariya University to

The Govt Commerce College Multan| ii

The Govt Commerce College Multan| iii

Govt. Commerce College Multan

Session 2008 - 2010

The Govt Commerce College Multan| iv

The Govt Commerce College Multan| 1

PURPOSE OF THE STUDY

 To get acquaintance to the MEPCO operations.

 To know what sort of changes management brings in managerial activities.

 To see the application of our Professional studies especially.

 A partial fulfillment as a requirement for the completion of M.Com degree.

 To make recommendations or implementation plans for the improvement of the

The Govt Commerce College Multan| 2

The Govt Commerce College Multan| 3

Charter of Duties of WAPDA:

The Govt Commerce College Multan| 4

PAKISTAN ELECTRIC POWER COMPANY

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

 De-regulation of power sector

The Govt Commerce College Multan| 5

 Stop load shedding,

Development of an integrated automated power planning system for generation, transmission

INNOVATION OF COMPANIES TO WAPDA:

The Govt Commerce College Multan| 6

DISCO (DISTRIBUTION COMPANIES):

1] (LESCO) - Lahore Electric Supply Company

GENCO (GENERATING COMPANIES):

The Govt Commerce College Multan| 7

DISCOs NTDC GENCOs

The Govt Commerce College Multan| 8

The Govt Commerce College Multan| 9

AREA ELECTRICITY BOARD MULTAN

The Govt Commerce College Multan| 10

 To facilitate agriculture and industrial sector

 To ensure un-interrupted & stable power supply to all our customers

 State-of-art customer care for entire satisfaction of customers

 To provide electricity to every village in jurisdiction of company

 To establish, construct and operate reliable electricity distribution network

The Govt Commerce College Multan| 11

1. Multan Circle 6 Divisions / 33 Sub Divisions

Total 31 Divisions / 147 Sub Divisions

Project Construction Circle 8 Divisions

Total 104 No’s

DISTRIBUTION TRANSFORMERS 1, 15,810 No’s

Capacity of Distribution Tfrs 5886.56 (MVA)

DETAIL OF INFORMATION GIVEN BELOW:-

The Govt Commerce College Multan| 12

1. 11 KV Feeders 884 Nos.

2. Length of H.T Line 63,233 KM

3. Length of LT Line 42,595 KM

JURISDICTION MAP OF MEPCO

4 Agriculture SCARP D-1

6. Public Lighting G-1

7. Residential Colonies H-1

8. Railway Traction I-1

The Govt Commerce College Multan| 13

DUTIES OF MEPCO’s FINANCE OFFICER:

1. To act as a financial advisor.

TRAINNING SECTIONS FOR AN INTERNEE:

1. Banking & Imprest