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

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SIGNATURE

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EXTERNAL EXAMINER

NAME

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DESIGNATION

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SIGNATURE

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PREFACE

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INTERNSHIP REPORT ON MEPCO Genius makes its observations in short hand; talent writes them out at length. 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 know ledge 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, operatio ns & 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 phil osophy, 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 o f some problems observed during the course of internship.

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INTERNSHIP REPORT ON MEPCO

ACKNOWLEDGEMENT
All praise to Almighty Allah, the most merciful and compassionate, who g ave 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 compl ete this report. Sadaf Javed M. Com Govt. Commerce College Multan Session 2008 - 2010

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DEDICATION

I dedicate m
y wor to fir ty MUHAMMAD (S.A.W.W) and also my most e ec b e pare and eac ers whom prayers and hard wor made me able to have such an opportunity of woring in the Government Sectors and get experience.

EXE C UTIV E SUMMARY

Ex erience is not wh t h ens to you it is wh t you do with wh t h ens to you  -Aldus uxl y

I judge my time s ent at MEPCO (Finance) departments being the most productive and exhilarating experience of my corporate life. Few of the main highlights of my wor experience while at Finance Department were:
 Good Leadership  Congenial Wor Atmosphere  Challenging Tas s Assignment  Employee Empowerment  Proactive Problem Resolution

Before the details description of the report I started with the summary of wor 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 wor ing environment function, procedures and behavior of doing wor . 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, wor ing process and formal documentation of the MEPCO. The MEPCO is a very big organi ation with several departments in wor ing 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.

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INTRODU TION PURPOSE OF THE STUDY

Geeral 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.

Spec c 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.

 

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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 charge s 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), f our Generation Companies (GENCOs) and a National Transmission Dispatch Company (NTDC)and also in (IPPs). 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 & Po wer 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.

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 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.

C arter 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 organi ation.

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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

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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 practi ces, 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 custo mer friendly manner, with responsibility to the community and the Nation .

Objective :
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 WAP A:

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

WAPDA DISCOS NTDC GENCOS

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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 (DISTRIBUTIO COMPANIES):

 Ou 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 Mu affargarh 4] Lakhra Power Generation Company Limited (GENCO-4) Headquarter at WAPDA House Lahore. 5] District Mu affargarh Punjab.

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NTDC (NATIONAL TRANSMISSION & DISPATCH COMPANY):

NTDC acts as buffer between DISCOs and GENCOs. Any DISCO cant 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

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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. Mainte nance, Constructions, Planning, Civil, Admin, Human Resources, Computers , Public dealing and Finance. All of these departments have their own Managers, Deputy Managers, Asst Managers andOffice 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
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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 privati ation 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 reorgani ed into one such corporati ed entity under the name of Multan Electric Power Company (MEPCO) with effect from 14.05.1998, with the aim of commerciali ation and eventually privati ation.

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

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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

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Organi ation Structure

MEPCO consists of the following eight (08) Distribution Operation Circles, one Construction and two GSO Circles, as detailed below:
Operation Circles:
1. 2. 3. 4. 5. 6. 7. 8. Multan Circle D.G. Khan Circle Vehari Circle Bahawalpur Circle Sahiwal Circle R.Y. Khan Circle Muzaffargarh Bahawal Nagar Circle Total 6 Divisions / 33 Sub Divisions 3 Divisions / 12 Sub Divisions 3 Divisions / 13 Sub Divisions 3 Divisions / 17 Sub Divisions 4 Divisions / 18 Sub Divisions 3 Divisions / 15 Sub Divisions 3 Divisions / 16 Sub Divisions 3 Divisions / 13 Sub Divisions 31 Divisions / 147 S ub Divisions

G.S.O. Circles
1. Multan Circle 2. Sahiwal Circle Project Construction Circle

6 Divisions

8 Divisions

GRID STATIO NS
1. 2. 132/11KV 2. 66/11KV 77 Nos 27 Nos 104 Nos 1, 15,810 Nos 5886.56 (MVA)

Total
DISTRIBUTION TRANSFORMERS Capacity of Distribution Tfrs

DETAIL OF INFORMATIO N GIVEN BELOW:1. 2. 3. 4. 5. 6. 7. 8. 11. 12. 13. 14. 15. Ttal Length f 132/66KV, T/ Lines 132 KV Transmissin Line. 66 KV Transmissin Line . Ttal Nos. of Powe r Transf orme rs 132 KV Powe r Transforme rs 66 KV Powe r Transforme rs Distribution Transforme rs Capacity of Distribution Transforme rs Peak Demand of 2010-11 Ne w G/S added in 2009-2010 Conve rsion for 66KV & 132KV 2009-2010 Augmentation d uring 2009-2010 Extensi on 2009-2010 4289 2923 1366 204 152 435 115810 5886.56 2988 06 05 20 15 KM KM KM Nos. Nos. Nos. Nos. MWA MW Nos. Nos. Nos. Nos.

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HT / LT LINES
1. 2. 3. 11 KV Feeders Length of H.T Line Length of LT Line 884 Nos. 63,233 KM 42,595 KM

JURISDICTION MAP OF MEPCO

PRODUCT LINES
CATEGORY WISE ELECTRICITY CONNECTIONS

1. 2. 3. 4 5. 6. 7. 8.

Domestic Commercial Industrial Agriculture SCARP Agriculture Public Lighting Residential Colonies Railway Traction

A-1 A-2 B-1 D-1 D-2 G-1 H-1 I-1

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F INAN C E D E PARTM E NT, M E P CO

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 MEPCOs 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 i n 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.

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FINANCE DEPA TMENT

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 companys Profit and Loss Accounts, Balance Sheet and Cash Flow statements, to control the Financial system of the organi ation, Mobili ation of funds, Generation of funds and usage and allocation of funds as required by the Companys 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, contractors 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 authori ed 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

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BANKIN G & IMPR E ST S E C TI O N

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 companys fund in time, this section ask for such omission and charged interest for late remitted of companys 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 asC P 48 prepared in and by AM (CS). This summary is reconcile with bank stat ement 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 MEPCOs 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 f rom 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 bee use 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:

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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/Cs 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.

BUD G E T & CO RP O RAT E P L ANNIN G

This section operates two types of budgets:-

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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.

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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.

TA XE S S E C TI O N
Tax section has been established to fulfill the requirements of Income Tax Ordinance, 2001 as applicable to corporati ed entity anywhere in Pakistan. WAPDA is exempt from the levy of Tax

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but in the current scenario, MEPCO, being Limited Company, s i 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) toMEPCO. 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)

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INCOME TAX (Sec 165):

Income tax is deducted from the employs 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 stat ement 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

PR E- AUDIT

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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 M EPCO. 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 PreAudit section. The Pre-Audit section then verifies the available Budge t with the estimated cost of the project, hence rejecting and accepting the proposal.  PA MENT: 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 PA MENT : 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. CLUS TE RING AND S HIFTING OF ME TE RS: Clustering and shifting of Electricity meters claims audited. VE HICLES: Vehicles related activities are Pre-Audited e.g. POL of vehicles and LOG Books of vehicles are checked and audited. DE PRECIATION: 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:

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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

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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.  Accept ance/Clerk/Purchase Inspection Order. (In case of Accept ance pass t o Account Asst.) (In case of R ejection return back to Tender Co.)  Account Officer (t o maint ain Accounts sheets).  Pre-Auditor (In case of 50,000 limits). / Deput y Manager (Above 50,000 limit).  Demand Preparation.  Account Officer.  L.D. {Lat e Delivery Charges, (2% under 5 Months Payment), 10%(Aft er 5 months)}.  Supply Bill (Against Deposit/Against Budget).  Budget section (To prepare Budget).  Asst Manager.  Finance Direct or (Banking Sect or).

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ASS E T/SA L ARY S L IP

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 Buildings Office Equipment Distribution Equipment Depreciation ate 2% 10 % 3.5 % 10 % 10 %

Other plant and equipment Vehicles

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 organi ations.
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.

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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 132 KV Grid Station Equipmen t 66 KV Grid Station Equipmen t 132 KV Distribution Lines 66 KV Distribution Lines 11 KV Distribution Lines 400 V Low Tension Line Under Ground Conductor and Devices Distribution Transformers (11 KV/400 V) General Service Drop General Meters-General Distribution Transformers (11 KV/400 V) Industrial (0613) Service Drop Industrial Meter-Industrial (010615) Distribution Transformers (11 KV/400 V) Tube well (01613) Service Drop-Tu be well (010614) Meter-Tu be well (010615) Service Drop-Renovation (010614) Meter-Renovation (010615) Meter-Renovation Street Lighting and Signal System (010616) High Tension Lines Renovation (010617) Low Tension Lines Renovation (010618) High Tension Transformers (11 KV) Village Electrification (PWP, TWP) (010619) 11 KV Distribution Lines (Deposits) Village Electrification (Capital) Punjab Government Transformers Transferred From Scrap Account Code 10601 10602 10605 10606 10608 10609 10612 10613 10614 10615 10616 10617 10618 10619 10620 10621 10623 10624 10625 10626 10627 10628 10629 10630 10631 10632 10634

MISCELLANEOUS EQUIPMENT
Arms Equipment , Rest Houses, Medical Equipments, Construction Equipment, Laboratory Equipment, Work Shop Equipment, Transport Equipment.

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SA L ARY S L IP
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 informations 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. 2. 3. 4. 5. 6. 7. 8. 9. 10. 1977 1981 1983 1987 1991 1994 2001 2005 2007 2008

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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.

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P E NSI O N C ELL
This Cell has been established in MEPCO fr om WAPDA in 1st 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 its 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 1.5Service 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 FORMULAs:

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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. 2. 35% of Grass Pension 12 Age Factor it has been retained. 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.

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CO MPI L ATI O N C ELL

This section deals with the compilation of Companys 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. .

R E C E IVAB LE /PAYAB LE (I O T )
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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 DISCOs to DISCOs 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. Discos, 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 DISCOs and give SS cheque against payment

PROCEDURE:
Payable and receivable is always co. to co., Head office to head office, DISCOs to DISCOs, 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) Units Payable (LESCO) End of month transaction. Units Payable (LESCO) Units receivable (MEPCO) Dr. Cr. Dr. Cr.

AUDIT C ELL
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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 companys 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 companys 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:

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 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 payees and in receiving case write off from recovery books.

E STAB L ISHM E NT

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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 hir ed) 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.
1 5 11 17 19 Special Daily to 4 to 10 to 16 to 18 to 20 200 220 365 640 825 Ordinary daily 1 to 4 5 to 10 11 to 16 17 to 18 19 to 20 125 155 280 500 625

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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 daughters 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.

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ADMIN C ELL
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.

A CCO UNTIN G SYSTE M OF O R G ANIZ ATI O N :

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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 COLL ECTION 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.

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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 util ized 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.

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F INANCIAL ANALYSIS O F M E P C O
FINANCIAL OVERVIEW OF ME CO FINANCIAL RESULTS DURING 2008 -2009 Revenue (Rs. in Millions) 62,745.023 Sale of Electricity 182.537 Rental & Service Income 1,009.089 Amortization of Deferred Credit 1,592.379 Other Income 65,529.028 Total Revenue

EXPENSES Cost of Electricity Operating Expenses ( depreciation) Financial Charges Tax Total Expenses Loss for the year

61,886.892 6,637.902 304.739 68,829.533 (3,300.505)

FINANCIAL POSITION AS ON 30.06.2009 ASSETS Tangible Fixe d Assets Long Term Advances / deposits Current Assts Total Assets

(Rs. in Millions) 39,704.222 23.281 26,123.094 65,850.597

Equities & Liabilities

Share Capital & Reserves

4,779.078

Long Term liabilities Current Liabilities Total Expenses

16,220.889 44,850.630 65,850.597

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EXISTING STRENGTH UP TO 01/2011

S.# 01 02 03

Category Officers Gr-18 & above Assist: Managers Assist: Managers (C.S) Total LS-I LS-II SSO-I SSO-II Foreman LFM-I (Foreman) LFM-II (Foreman) Commercial Assistant LM-I (Lineman) LM-II (Lineman) ALM (Asstt: Lineman) Meter Reader Bill Distributor Chowkidar / NQ Clerks all types Other Staff Total Grand Total

04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

Distribution 164 263 27 454 487 408 1 2 3 31 46 620 1556 1542 4165 1665 403 888 955 2072 14844 15298

GSO 10 31 0 41 23 5 112 212 21 0 1 0 62 78 53 0 0 43 25 1345 1980 2021

Total 174 294 27 495 510 413 113 214 24 31 47 620 1618 1620 4218 1665 403 931 980 3417 16824 17319

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CATEGORY WISE NUMBER OF CONSUMERS AS ON 12/2010

T ari ff Domestic A-1 Domestic Temp E1 (1) T otal Commercial A-2 Commercial Temp E1(2) T otal Industrial B-1 Industrial B-1 TOD Industrial B- 2 Industrial B- 2 TOD Industrial B- 3 Industrial B- 3 TOD Industrial B- 4 Industrial B- 4 TOD T otal Bulk C-1 (A) Bulk C-1 (B) Bulk C-2 (A) Bulk C-2 (C) Bulk C-3 T otal Scarp D-1 Agri: D-2 Agri: D-2 TOD T otal Public ight

Pvt. 3603505 752 3604257 394168 914 395082 25233 27 4871 14507 26 204 0 6 44874 29 115 6 0 0 150 970 32541 31010 64521

ovt.
19247 5 19252 1241 15 1256 690 0 269 875 3 10 0 1 1848 68 153 15 0 1 237 15 2238 167 2420 1134 8 5

Total 3622752 757 3623509 395409 929 396338 25923 27 5140 15382 29 214 0 7 46722 97 268 21 0 1 387 985 34779 31177 66941 1605 114 5

471 106 0

esidential CLY ailway Traction

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Co-Generati on

3 4109464


6160

3 4135624

AL

C!s h Collection Branc hes % % & % Sele"# $ division #o see # e "$s " olle"#ion '$n" es
MULTAN CANTT MUMTAZAB AD CITY KHANEWAL MIAN CHUNNU D.G KHAN RAJANPUR VEHARI BUREWALA MAILSI BAHAWALPUR LODHRAN AHMAD PUR SAHIWAL PAKPATTAN CHICHAWATTNI

MEPCO ONLINE CONS (MER BILLINNG:

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VI LL A GE ELE CTRIFI C AT I O N PR O G RE SS :

2010-11 (U PTO 12-2010)

S). NO.

ON-GOING P)OJECTS

TOTAL * SCHE ES

COMPLETED ENDING 12/2010

BALANC + E/ LE T OVE)

PWP - I (M.N.A / SENATOR)

491

145

346 1932 0 218 4 137 0 1

2 3 4 5 6

PWP - II (P.M.D) KPP- I (M.N.A / SENATOR) KPP- II (P.M.D) KPP (MPA) KHUSHHA , PAKISTAN PROG. (DISTRICT NAZIM) CHO,ISTAN DEVE,OPMENT AUTHORITY D.O.P E ,ECTRIFICATION)

3228 13 242 4 423

1296 13 24 0 286

11

11

IN-COMP,ETE SCHEMES (P-II)

G: TOTA, :-

4421

1776

2645

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D O P / ELR WORKS CO MP LETE D :

(WAPDA OW N SOURCE)

Sr. No.

YEAR

W orks Completed

Expenditure Incurred

2010-2011 Up to 12-2010

HT Feeders

104.561 (M)

-T Proposals

87

52.517 (M)

Total

96

157.078 (M) (Tentative

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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, Gudd u

d. Hydel Training Center, Mangla e. Technical Services Group, Lahore f. 8 Regional Training Centers (RTCs), one at each DISCO

Addre..: MEPCO, Khanewal Road, Multan.

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SWOT Anal

i :

s 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 ofMEPCO in the light of the specific variables which directly or indire ctly affect the operations of the MEPCO. The tool selected for the analysis of organization is SWOT analysis.

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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 strengt h 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

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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.

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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

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LIMI TATI ON S
 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.

O SERVATI ONS
 I have observers that there is need of improvement in the MEPCO Departments working

who still use manual systems.

 Some time the employee doesnt 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.

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SUGGESTI ON
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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