Multan electric power company (MEPCO)

Internship Report On
MEPCO (WAPDA) Office of the Manager Operation MEPCO Multan circle

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Internship report submitted to the department of Management science, Education University Multan to full fill the requirements of BBA (Hons) Degree By M.Shehroz khan Roll# 1167 BBA(HONS) Session 2009-2013 Coordinator Prof: Sohail chuhan Department of Management sciences Education University Multan Campus Dated: 2-07-2013

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Preface
Genius makes its observations in short hand; talent writes them out at length. Christian Nevell Bovee As mentioned by the above quotations observing and on site viewing are every firm base for learning. We learn a lot more by seeing the theories, we read in books, applied practically by the pros and by seeing how they actually put them to work. If we mull over the significance of internship program then we will be able to bare the facts that internship enhance ones practical loom towards work and provide maximum chances for learning, which will obviously help out candidate in the practical fields. The intention at the rear about internship program is that the students can analyze, observe, feel, examine the organization environment and equip themselves with the tools to face the ever shifting challenges in the organizations. In short internship plays a pivotal role in the future sensation& stir of the candidate. This Report is specially meant for the student of BBA (Hons). It is concerned to a brief study of the operation, Function, tasks and services of MEPCO. The effective system at MEPCO was a piece of art and to see it in working process was a treat itself. The billing system at MEPCO is designed to calculate and disseminate bills and to store these bills in the data base and to use them for further use. MEPCO has fine organizational structure and a well define fully working effective system that helps and aids managers to do their job at best. Our knowledge was further enlighten when we had some of the lectures from the seniors managers of MEPCO, they knew quite a lot about the organization and the subject and they left no stone unturned to let us know about that it was a four week study of the billing system and we had the most enjoyable case study of our life.

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In preparation of this Report is have tried my best to provide all Possible information about the operation, function and tasks of MEPCO in brief and comprehensive form. It also includes a brief department worked during internship. I have also tried my best to use simple and easy words and language. This report is an anthology of my views pertaining to MEPCO operations & practices. In my view it is a credible and comprehensive compilation of facts. In this report I wrote principally on the issues pertaining to job duties & responsibilities, operations & practices and its future prospects with some recommendations. When the time came to give this information a convenient shape I was confronted with a dilemma of what to put in. One leeway was to include all details with explanation & second preference was to point out some worthy issues with some details. Last solution looked more practicable to me therefore I opt for second solution i.e. to present some relevant feasible details. These details entail information about management philosophy, practices, and functions, strong and weak areas of MEPCO . I take this opportunity to express my gratitude to all who helped me in the preparation of this valuable report.

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Acknowledgment

All praise to Almighty Allah, the most merciful and compassionate, who give me skills and abilities to complete this report successfully I am grateful to my parents who are always been a source of encouragement for me throughout my life and from start to the end of this report I am thankful to all my staff members so MEPCO Multan division. I found every one very co-operative and helpful for providing me the Theoretical as well as practical knowledge about the function and operation of the MEPCO. I like to express our gratitude to Faqir Ahmed (Head of Technical Dept.MEPCO), Ahsan Kareem (Manager Revenue Branch) and the whole MEPCO Team that helped me by providing all the needed information i needed to complete this report. I express my greatest gratitude to my kindhearted Supervisor Mr. Sohail Chuhan Who was the Person who made me able to write this report, His enthusiasm shows the way forward to me to achieve this success and who kept me in high spirit through his appreciation. He helped me a lot each time I went up to him.

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Dedication

I dedicate my work to my most respectable parents and teachers whom prayer made me able to have such an opportunity of working in the Government Sectors and get experienced.

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Executive Executive summary summary

Experience is not what happens to you, it is what you do with what happens to you. Aldous Huxley I judge my time spent at MEPCO(Finance Department) as being the most productive and exhilarating experience of my corporate life. Few of the main highlights of my work experience while at Finance Department were: Good Leadership Congenial Work Atmosphere Challenging Tasks Assignment Employee Empowerment Proactive Problem Resolution Before the details description of the report I started with the summary of work I done. 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 29-07-2013 and end on 06-09-2013, this period was the real experience e 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
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Khanewal road for 6 weeks. MEPCO gives me the opportunity to view, how the books of accounts are prepared, how to fill the different forms, how to behave wit customers and about the record keeping. I worked in Finance section of MEPCO and learned about distribution system of MEPCO, technical correspondence between departments and flow of data between departments. I also learned billing system of MEPCO and also how to apply for new connection and what is procedure. Here staff gives me opportunity to do practical work. It was a really nice and fruitful 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, the common factor that binds us all is the good work done by our predecessors in the Education University. I have given more than 100% of my efforts to keep up that good work and I am sure that my colleagues have done the same. 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 of Education University.

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History
Water is the most significant source in the country like Pakistan in which an overwhelming majority of the population is dependent on agriculture as a source of living. Besides agriculture produces constitutes the basis of countrys economy and foreign exchange earning s, making water all the more important. In September 18, 1958 WAPDA was created to undertake the task of investigating, planning and executing schemes for irrigation drainage, prevention of water logging and reclamation of saline land as an autonomous body responsible for integrated development of water and power resources in Pakistan. The organization was also entrusted with the work of implementing Indus Basin Settlement plan signed between India and Pakistan in 1960 to develop replacement works for management of river water and irrigation system. The life savings action for Pakistans agriculture has been WAPDAs role in the field of water logging and salinity. The multipurpose dams to Mangla and Tarbela have supplied much needed water supply for winter crops and produced valuable hydel electricity as bi-product to give a broad base to WAPDAs vast and country wide national grid. At the time of independence in 1947, Pakistan inherited 60 megawatts of power generation capability with the average annual production of 142 million units of electricity for a population of 31.5M, yielding 4.5 units per capita consumption. After 12 years, when WAPDA was created in 1958 the generation capacity had crawled to 119 MW. In first five years of its operations by 1958-1963, the electricity capability went up to 636 MW from 119 in 1959, and power generation to about 2500 MKWH from 781. Density of consumption system rose from 278 thousand customers in 1959 to 688 thousand in 1965. WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a SemiAutonomous Body for the purpose of coordinating and giving a unified direction to the
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development of schemes in Water and Power Sectors, which were previously being dealt with, by the respective Electricity and Irrigation Department of the Provinces.

Charter of Duties: 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 Water logged and Saline Lands. Flood Management.

Corporatization policy
Objectives:
In 1992, the Strategic Plan for restructuring the Pakistan Power Sector (PPS) was approved by the GOP/CCI. As a part of the restructuring process, WAPDA's functions under Water Wing and Power Wing were to be segregated in the following manner: Unified Power wing of WAPDA comprising of Generation, Transmission and Distribution to be restructured into twelve (12) public limited companies under the corporate law. Now TESCO is made in Tribal areas

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Restructure power sector assets to form autonomous commercial entities through the adoption of prudent business practices, enhanced efficiency levels, cost reduction and profit orientation Promote competition to eventually offer affordable electricity to customers. Through commercialization process, promote commercial viability and enhance business value of the assets block of each corporate entity.
Enhance privatization initiatives

Accomplishments:
Major accomplishments to-date are as follows:
Operationalized Pakistan Electric Power Company (PEPCO) as a Private limited management company owned by Government of Pakistan (GOP) to steer, manage and oversee the corporatization/commercialization reforms program. Formed twelve (12) Corporate Entities as following: FOUR Thermal Power Generation Companies (GENCOs). Southern Generation Power Company Limited (GENCO-1) head quarter at Jamshoro district Dadu near Hyderabad Sindh. Central Power Generation Company Limited (GENCO-2) head quarter at Guddu district Jacobabad Sindh. Northern Power Generation Company Limited (GENCO-3) head quarter at WAPDA House Lahore. Kout Addu Power station (KAPCO) head quarter at Kout Addu Punjab.

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Eight (8) Distribution Companies (DISCOs). Now TESCO is added to these,

1. LESCO 2. GEPCO

Lahore Electric Supply Company. Gujranwala Electric Power Company.

3. FESCO Faisalabad Electric Supply Company. 4. MEPCO Multan Electric Power Company. 5. PESCO Peshawar Electric Power Company. 6. HESCO Hyderabad Electric Supply Company. 7. QESCO Quetta Electric Supply Company. 8. IESCO Islamabad Electric Supply Company. 9. TESCO Tribal areas Electric Supply Company

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One (1) National Transmission & Power Dispatch Company (NTDC) Constituted Board of Directors of the corporate entities with the induction of Directors from the private sector and PEPCO to utilize their experience for formulation of effective corporate policies. Executed Legal agreements such as Business Transfer Agreements (BTA), Operation and Development Agreement (ODA), Electricity Supply Agreements (ESA), Bulk Supply Agreements (BSA) and Fuel Supply Agreements (FSA) between WAPDA and corporate entities for autonomous commercial operation. Transfer of WAPDA staff to the respective corporate entities (Manpower Transition Program Phase-I completed). Phase II was also scheduled for completion by June, 2000. Obtained Federal Tax Exemptions for the corporate entities for Capital Value Tax, Income tax and Wealth Tax. Obtained consent of most of the creditors Investment Plans for Distribution Power System Rehabilitation prepared and finalized by the Distribution companies Financial Restructuring of WAPDA approved by GOP Filed applications by all Power Distribution Companies (DISCOs) for obtaining License from National Electric Power Regulatory Authority (NEPRA).

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Customer Services:
WAPDA provides a chain of services to its on-line consumers. You can use the links provided at the top to conveniently receive any type of Customer Services while sitting at your home. The sources of these services are reliable and follow-up is on regular basis.

Training:
General Manager (Training) office is functioning at WAPDA House, Lahore and controls various training centers detailed below: WAPDA Staff College, Islamabad. WAPDA Engineering Academy (Water & Power), Faisalabad Thermal Generation Training Center, Guddu Hydel Training Center, Mangla Technical Services Group, Lahore Eight Regional Training Centers (RTCs), one at each DISCO

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INTORDUCTION:
Multan Electric Power Company Limited is a public limited company incorporated in Pakistan. The Company was established to take over all the properties, rights, assets, obligations and liabilities of Multan Area electricity Board (MAEB) owned by Pakistan Water and Power Development Authority (WAPDA) and such other assets and liabilities as agreed. The Company got the certificate of incorporation of business on 14th May, 1998 and the certificate of commencement of business on 01 July, 1998. After that the company started the commercial operations, the principal activity of the company is distribution and supply of electricity to public within defined geographical boundaries. The Company also provides the Electricity in rural areas, under the project called Village Electrification and European Commission Through these projects electricity has been provided in mostly rural areas.

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Mission statement
To ensure un-interrupted & stable power supply to all our customers with state-of-art customer care to the entire satisfaction of customers, issuance of correct bills in a customer friendly manner and facilitate agriculture and industrial sector catalyzing economic growth of country.

Vision Statement
To ensure convenient availability of high quality power in area of responsibility, in order to alleviate the poverty, improve quality of life and make the Industrial and Agriculture Sector competitive in the World Market.

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OBJECTIVES OF STUDYING THE ORGANIZATION

As a part of restructuring process of WAPDA, Multan Electric Power Company (MEPCO) was formed to take over the functions and operation of Multan AEB. It is the one of Nine (9) Distribution Companies that has been formed out of WAPDAs distribution system MEPCO has been working vigorously to meet the challenges to provide the Electricity in the whole MEPCOs region. A measure of this understanding is progressive mea sure such as establishment of VILLAGE ELECTRIFICATION & EUROPEON COMMISSION PROJECT to provide electricity in the whole region, the area of MEPCO is increasing day by day now the total Divisions in MEPCO are 67.It is one of the biggest companies among WAPDA.

Management Philosophy:
Open door policy for all, Tackle all problems upfront Merit, justice, fair play be the hallmark Transparency in all fields Accountability of everyone

MEPCO is autonomous body and responsible for salary payments to its employees, Recruitment of new employees and all of its matters itself

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Multan electric power company (MEPCO) MEPCO (H.Q)

The MEPCO Head office is situated at Khanewal road Multan, which is central place of Multan City. The Companys main offices are also situated in this colony like. OFFICE OF THE CHIEF EXECUTIVE. OFFICE OF THE FINANCE DIRECTOR OFFICE OF THE DEPUTY CHIEF AUDITOR. OFFICE OF THE DIRECTOR PLANNING AND DEVELOPMENT OFFICE OF THE MANGER INVENTORY CONTROL. OFFICE OF THE PROJECT MANGER (CONST)

WAPDA HOSPITAL: The company provides the free medical facility to its officers and staff. The officers are subjected to get the medical facility. They cannot get cash medical allowance. But staff people can get one of the two facilities i-e cash medical allowance or medical facility, But in emergency they can get facility they feel according to their need. The Chairman WAPDA has announced that WAPDA Hospital (MEPCO) change WAPDA (MEPCO) Dispensary. Now the Dispensary is providing the first aid facility to the MEPCO Employees and refers the serious case to the WAPDA Hospital. The MEPCO Employees complaint to Chairman, WAPDA starts the MEPCO Hospital facility in Multan. In view of the different complaints, the Chairman WAPDA said that the MEPCO employees can enjoy only one facility.

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Multan electric power company (MEPCO) MEPCO Organization chart

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AREA OF OPERATION:
MEPCO's area of responsibility covers Multan, Khanewal, Sahiwal, Pakpattan, Bahawalnager, Lodhran, Bahawalpur, R.Y. Khan, Vehari, Muzaffargarh, D.G. Khan, Layyah, and Rajanpur. ORGANIZATIONAL STRUCTURE OF MEPCO : It comprises of the following eight (08) distribution Operation Circles as detailed below:Operation Circles 1 Multan Circle 2 D.G Khan Circle 3 Vehari Circle 4 Bahawalpur Circle 5 Sahiwal Circle 6 R.Y. Khan Circle 7 Muzaffargarh 8 Bahawalnagar Circle G.S.O Circles 1. Multan Circle 2. Sahiwal Circle Project Construction Circle 8 Divisions
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6 Divisions / 33 Sub Divisions 3 Divisions /12 Sub Divisions 3 Divisions /13 Sub Divisions 3 Divisions / 17 Sub Divisions 4 Divisions /18 Sub Divisions 3 Divisions /15 Sub Divisions 3 Divisions /16 Sub Divisions 3 Divisions / 13 Sub Divisions 6 Divisions

Multan electric power company (MEPCO)

Grid Stations: 1. 132/11KV 2. 66/11KV 3. Consumer Grid (132/11KV=04, 220/132/11KV=01) TOTAL POWER TRANSFORMERS 1. 132/66KV. 2. 132/11KV 3. 66/11KV Total Total installed Capacity 13 Nos. 127 Nos. 44 Nos. 184 2858MVA 07 Nos. 111 74 Nos. 30 Nos.

LENGTH OF TRANSMISSION LINES 1.132 KV. 2. 66 KV HT/LT LINES a) 11KV Feeders b) Length of 11KV Lines c) Length of LT Lines 821 Nos. 53353.309 KM 32183.324 KM 2809 KM 1479 KM

d) Transformers (Different Capacity)

89074 Nos.

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NO of Employees in MEPCO UPTO 06/2013 EXISTING STRENGTH S.# Category 01 Officers Gr-18 & above 02 Assist: Managers 03 Assist: Managers (C.S) 04 LS-I 05 LS-II 06 SSO-I 07 SSO-II 08 Foreman 09 LFM-I (Foreman) 10 LFM-II (Foreman) 11 Commercial Assistant 12 LM-I (Lineman) 13 LM-II (Lineman) 14 ALM (Asstt: Lineman) 15 Meter Reader 16 Bill Distributor 17 Chowkidar / NQ 18 Clerk all types 19 Other Staff Grand Total Distribution 152 279 27 435 398 0 0 2 31 36 512 1556 1445 3378 1606 570 726 969 2036 14158 GSO 9 38 0 19 6 107 212 19 0 1 0 65 90 29 0 0 34 23 1283 1935 Total 161 317 27 454 404 107 212 21 31 37 512 1621 1535 3407 1606 570 760 992 3319 16093

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Multan electric power company (MEPCO) Category wise No of Consumers Up to 31/05/2013

No. of Consumers CATEGORIES GOVT. Domestic A-1 Domestic Temp. E1 (1) TOTAL DOMESTIC Commercial A-2 Comm.: Temp E1 (2) TOTAL COMMERCIAL Industrial B-1 Industrial B-1 (08) Industrial B-2 Industrial B-2 (11) Industrial B-2 (TOD) Ind: 11/33 KV B-3 B-3 (TOD) Ind: 66/132 KV B-4 B-4 (TOD) Ind: Temp E-2 (1) 13344 1 13345 4568 12 4580 958 0 130 2 1 4 4 0 1 1 PRIVATE 3118189 668 3118857 363192 713 363905 31498 30 4826 5 9 28 165 0 6 43 TOTAL 3131533 669 3132202 367760 725 368485 32456 30 4956 7 10 32 169 0 7 44

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TOTAL INDUSTRIAL Bulk Supply C-1 (A) Bulk Supply C-1 (B) Bulk Supply C-2 (A) Bulk Supply C-2 (C) Bulk Temp: E-2 (3) TOTAL BULK SUPPLY Agri: SCARP Agri: D-2 (1) Two Part Agri: D-2 (2) Two Part TOTAL AGRICULTURE Public Lighting (G1. G2) Res: Colonies (H1, H2) Rly: Traction (1) Co- Generation (J) TOTAL 1101 70 156 28 0 1 255 2998 153 0 3151 946 8 4 0 23390 36610 22 99 5 1 0 127 33350 19945 35 53330 161 91 0 4 3573085 37711 92 255 33 1 1 382 36348 20098 35 56481 1107 99 4 4 3596475

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FINANCIAL OVERVIEW OF MEPCO
FINANCIAL RESULTS DURING 2012-2013 REVENUE (Millions) Sale of Electricity Rental & Service Income Amortization of Deferred Credit Other Income Total Revenue 41,446.934 163.120 696.421 1,006.864 43,313.389

EXPENSES (Millions) Cost of Electricity Operating Expenses (incl. depreciation) Financial Charges Total Expenses plus Tax Loss for the year 40,962.160 4,945.979 703.180 46,676.312 (6309.569)

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FINANCIAL POSITION AS ON 30.06.2013 ASSETS (Million)

Tangible Fixed Assets Long Term Advances / deposits Current Assts Total Assets

30,557.350 17.340 15,549.660 46,124.350

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ACCOUNTING UNITS:
MEPCO has 74 accounting units which are as follows, 28 Deputy manager operations/ Exien office 28 customer services offices (Revenue office) Manager MIS Manager P.D Construction Manager (Material & Management) Manager T & S (Technical services) S.S & T offices (these are 4 offices a-Muzaffar garh b-Multan c-D.G Khan d-Sahiwal) Deputy Manager P & I ( Protection & Instruments ) Deputy Manager Civil Regional Stores (these are 4 offices a-Multan b-D.G Khan c-Sahiwal d-Bahawalpur) P.D GSC Finance Director (F.D) Manager STG ( Station Transmission Grid station)

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FINANCE DEPARTMENT Finance is like the running blood in the organization. So Finance management is very important in any firm. In MEPCO the Finance department is doing finance management well. Because of its highly qualified and trained officers and hard working team this de partments performance is out of mark. Finance Department has the following structure, 1. Mr. Mushtaq Hussian Bukhari (FD) 2. MR. Mian Ansaar Mehmood (MCA) 3. Mr. Ch.Ashraf (DMCA) 4. Mr. Khawaja Habib-ur-Rahman (DMCA) 5. Mr. Jahangir Bhutta (Acting MF.CPC) 6. Mr. Irfan-ul-llah (DMCA STG) MAIN OFFICES OF FINANCE DEPARTMENT BANKING SECTION: Mr.Rao Tasa (AMCA) BUDGETING SECTION: Mr. Jahangir Bhutta (MF.CPC) POST & PRE AUDIT SECTION: Mr.Aftab Fazal (AMCA) RECEIVEABLE & PAYABLE SECTION: (AMCA) COMPILATION SECTION: Mr. Najeeb Afzal (AMCA) ESTABLISHMENT SECTION: Mr. Liaqat Ali (AMCA) PENSION SECTION: Mr. Iqbal Munawar (AMCA) ASSETS SECTION: Mr. (AMCA)

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Banking section
This section deal with the different banks those are authorized banks of the company under the area covered by the company. This section monitor the collections of electricity bills, security deposits, RCO fees, and other receipt as well as remittance of the such collection in to main branch of the company at Multan. If any bank fails to remit the companys fund in time, ask for such omission and charged interest for late remitted of companys fund. This section also deals with the reconciliation and related matters with banks. Revenue collection from the banks and distribution of cash to accounting units is done through banking section. Banking has four main accounts in different banks. These are Main Revenue account Retention account Capital cost account Security Deposit accounts

MAIN REVENUE ACCOUNT:

Main revenue account deals with the receipts of Revenues from all the MEPCO offices. They are directed to deposit collections in MRA in the banks associated with MEPCO. These are ABL, BOP, NBP, HBL, UBL, MCB, Askari, PPCBL, GPO, 1st Women bank

CAPITAL COST ACCOUNT:

The cost of meter that is erected for customer is treated as capital cost and the amount that is received from customer after payment of Demand notice is transferred to capital cost account.

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RETENTION ACCOUNT: This account has two main categories, 1. Deposit work account 2. General Account Funds that are given to MNAs are transferred to DEPOSIT WORK account. The only bank deal with is ABL. These funds are used for the new electrification in rural areas Any payment to Supplier for purchase of any kind of material is done through GENERAL account. This payment bears the procedure of L.C. Payment of salaries to employees also done through this Account. SECURITY DEPOSIT ACCOUNT: When any customer pays the demand notice for the connection of electricity it consists of two costs 1. Capital Cost 2. Security Amount The capital cost amount goes to Capital cost account and the remaining in the security account. BUDGET SECTION: Budget means the expected Revenues and Expenses for specific period. Budget making is very effective tool for the management to run its operations smoothly. This section deals with preparation of the budget of each office / division of the company. After approval of the budget the funds are issued to each office according to their budget requirement. This section also monitors the variance of the budget.

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This section is so much important because of its working scope. It deals with CAPITAL BUDGET which holds the following activities, Development Of Power Energy Lost Reduction STG Developments This section makes the Unit rates and send to the National Electricity power regulatory Authority (NEPRA) for approval. Loans are also arranged by this section. POST & PRE AUDIT SECTION: The company has to setup of the internal audit of the companys revenue / financial activities. This department is working, under the administrative control of Deputy Chief Auditor, MEPCO Multan. The internal audit division conduct the revenue audit of the companys revenu e accounts continuously throughout the year. The internal audit division is also responsible for the audit of the company. It is divided into the different basic sections which deal with their relevant department billings & payments. These sections are Transport Audit Civil division audit System Transmission Grid

INTERNAL AUDIT DIVISION: The company has to setup of the internal audit of the companys revenue / financial activities. This department is working, under the administrative control of Deputy Chief Auditor, MEPCO Multan. The internal audit division conduct the revenue audit of the companys revenue accounts continuously throughout the year. The internal audit division is also responsible for
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the audit of the company. The audit of the accounts of the companys formation is conduct through two types of audit parties. LOCAL AUDIT PARTIES: The local audit parties audit the electricity revenue accounts maintained in revenue office concerned on bi-annual basis throughout the year. 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. And after discussion with revenue office and Dy.Manager (OP) or in some cases with Manager (OP), the audit notes are accepted and debited to respective consumer for recovery. AUDIT PARTIES: These parties conduct the financial audit of the companys formation on yearly basis in addition to this, these parties also conduct the capital receipt audit. These parties audit the accounts maintained by the Sub-Division/Division/Circle level and also conduct the audit of the MANGER Finance and other MANGER etc. of the company. This party also conducts the audit of the Chief Executive office to check its accounts. In addition to above regular audits the internal audit division also carry out the special audit of the accounts of certain formation under the specific order of the Chief Executive. The result of such audit is submitted to the company for taking further necessary / remedial action. The company itself lays down the scope of the special audit. It is also the function of internal audit division to verify the financial rules and order that these are accordingly followed.

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STOCK VERIFICATION: The company has maintained its schedule for verification of its assets and stock on annual bases. The Deputy Chief Auditor deputes its work verifiers for this purpose. The stock verifiers visit the specific formation assigned to them for stock verification. They physically check the assets and reconcile with stock register and point out discrepancy regarding surplus of shortage. EXTERNAL AUDIT: According to companys ordinance 1984, a Chartered Accountant must audit the financial statements of a Public Limited Company. For this purpose Board of Director has appointed the External Audit Party. Board of Director has appointed M/S RIAZ AHMED & COMPANY Chartered Accountants; to conduct the statutory or external audit of the company. COMPILATION SECTION: This section deals with the compilation of the accounts of the company. The operation division and other division of the company submit their monthly accounts to this office with relevant records. This section maintains different books of accounts. The accountant received from different division is posted in ledger accounts according to their heads for ultimate preparation of final accounts. At the end of each month they prepare consolidated trial balance and at the end of financial year this diction prepare the profit and loss accounts, balance sheet, cash flow statement and detail of accounts of different heads.

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ESTABLISHMENT: Establishment sections deals with the staff payments like Travelling allowance, Salary, Medical allowance, WAPDA welfare fund, Group life insurance and Marriage funds etc. All these funds are received by employees after approval of this section. TRAVELLING ALLOWNCE: When an employee goes to another city on behalf of MEPCO, it gives the travelling allowance to him. Travelling allowance is given in two ways Special day allowance Ordinary day allowance Special day allowance is given when employee goes to the big city which is mentioned by MEPCO like Lahore, Faisalabad. Islamabad, Karachi, Peshawar etc. But the ordinary allowance is given for small cities. Special daily allowance rate is higher than Ordinary daily allowance. MEDICAL ALOWANCE: Two options are available to employees in respect of Medical allowance. These are Cash medical allowance and Medical Facility. Cash Medical allowance is given in monthly salary (i-e 425 Rs.). And Medical facility in shape of medical treatment from approved hospitals. From scale 1-16 one from each facility can be taken but from scale 17-22 only facility available is Medical Facility. GROUP LIFE INSURANCE: It is the part of Government policy to deduct the Group life Insurance from salary of employees. Deduction under this head is accumulated in GLI Account.

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ASSET SECTION: This section is established to deal with all the assets of the company. Company charges depreciation on its assets by using the following rates. Buildings Office Equipment Distribution Equipment Other plant and equipment Vehicles ACCOUNTING POLICY FOR DEPERECIATION: Depreciation is charged by using straight-line method so as to depreciate the depreciable amount of an asset over its useful life. Depreciation is no charged on the assets disposed during the year but full year depreciation is charged on any asset purchase during the year. PENSION: Pension is the benefit for the employee after retirement and is given by the employer at monthly basis. There are two conditions of service for which the employee is eligible for pension. First he has completed the service of 25 years and second is he reaches the age of 60 which is the maximum limit for service. Following are the types of Pension, Super annuation Pension Retiring Pension Compensation Pension @2% @ 10 % @ 3.5 % @ 10 % @ 10 %

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Family Pension Invalid Pension Graduity

1 Superannuation Pension
It is the pension offered by the government at the age of 60 years. At that age the person is must be retired.

2 Family Pension
It is offered by the government in the case when the employee is dead due to the natural cause during service or after retirement.

3 Invalidation Pension
It is the pension offered by the government when the employee is not remains medical fit due to the some medical reasons; example is eye sight is week or any other cause.

4 Retiring Pension.
It is the pension taken by the employee when he is completed the service which is important to qualify for taking pension. At the filing the case of pension, the documents required are Pension Form Computerized Id card Photos of 25 years

Service Book

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The service book is the book which is submitted by the employee at the time of appointment. In that book his whole service record has been kept. His pay scale increment every year, his promotion, his leaves all the records are kept in that book.

Retirement Order
The retirement order has been submitted by the employee at the age of 60years by the approval of chief.

Last Pay Certificate (LPC)

The LPC is the certificate issued by the finance director in which his last basic pay is mentioned which is used in the further making of pension.

No Demand Certificate
It is the certificate in which employee give the surety that he has not ever take the loans or any pension funds ever before

No Audit Para Certificate

In it, it has been verified that any audit team has write any comments on his service book related to his service.

No Enquiry Certificate
In it, it has been verified that there is no enquiry has been sitting against him for that reason he has been suspended from his job.

FIA Certificate
In it, it is verified that in the whole service he is never caught red handed by the anticorruption or FIA for doing the misuse of his authorities.

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Entire Service Certificate (Consolidate Certificate)
In it, there is a calculation of the whole service period and verified by the Finance director. In that there is also mentioned how much his approved vocation has been left. The total earned leaves are 48 days these are adding every year in case any leave is left. And casual leaves are 25 days these are renew every year

EOL Certificate (Extra Ordinary Leave Certificate)

In it, it is verified that from his service book he has not taken any extra ordinary leave for any purpose so that that period has been deducted from his service period.

List of Family Members

In it, list of detail family members including the wife, children married/ unmarried, their ages. The above mentioned documents are necessary for an employee to submit them when he is going to take his pension. In case of missing or incomplete or any recovery taken from employee no pension has been given.

Pension Rules:
In it following permission has been given In case of death of employee, his widow/ orphan has take the pension by fulfilling the following conditions Son is less than 21 years of age. Daughter is unmarried. She has submitted his unmarried certificate Widow is also submitted the non- marriage certificate after the death of his husband and also the non separation certificate in case of the employees who has not married but died their parents can take the pension up to the 10years

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Service above the 6 months consider next year and below the period should be ignoring in calculation of service years. After the service of 25 years he is eligible to take his pension In case of death, service is less than 5 years then there is no pension If it is in between the 6-10 years he will get the pension of 1.5 years salary.

Calculation of Pension:
Let the basic pay of the employee is Rs.10000/- at the retirement time. Then his pension has been calculated by the following Gross Pension = Basic pay*70/100* service/30 = 10000* 70/100 * 25/ 30 = Rs.5833/This Pension is divided into two forms

Accumulations
= GP * 35% * 12 * age factor = 5833 *35% *12 * 12.3791 = 303097.2/-

Monthly Pension
= 5833 * 65% = 3791 Increase 1-07-2005 = 3791+ 3791* 10% = 4170 Increase 1-07-2007 = 4170 + 4170*15% = 4795 So the monthly pension is Rs.4795/-

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Multan electric power company (MEPCO) FUNCTION OF THE FINANCE DEPARTMENT

MEPCO ACCOUNTING SYSTEM: ACCOUNTING: Accounting is simply the means by which we measure and describe the result of economic activities. Actually, nearly everyone practices accounting in form or another on almost daily basis. Whether you are managing a business, making investment, preparing your income tax returns or just paying utility bill. you are working with accounting concepts. Accounting is also called the language of business because it is widely used in describing all types of business activities. Every investor, manager and business decision makers need a clear understanding of accounting terms and concept. Modern system of accounting is based on the principle of double entry book keeping system.

DOUBLE ENTRY BOOK KEEPING SYSTEM Double entry system based on the principle of duality which means that all events of economic importance have too aspects (i-e effort and rewards, scarifies and benefit , resource and uses that off set or balance each other in the double entry system each transaction must be recorded twice in such a way that total amount of debit and credit must equalizes each other .The T accounts is a helpful place to begin the study of double entry system

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Multan electric power company (MEPCO) THE USE OF COMPUTER

IN ACCOUNTING SYSTEM:

The sequence of accounting procedures used to record, classify and summarize the accounting information is termed as Accounting Cycle. The Accounting Cycle begins with the initial recording of business transactions and concludes with the preparation of formal financial statements, summarizing the effects of these transactions. The terms Cycle indicates that these procedures must be repeated cont inuously to prepare new up-to-date financial statements at reasonable intervals. The Information Technology Cell of MEPCO Computer Centre has developed following two software packages for computerization of accounting procedure prevailing in MEPCO. Software for Elementary Accounting Units. Software for Headquarter

CASH BOOK:
Two types of Cash Book are being used by the MEPCO. Imprest Cash Book Miscellaneous Receipt Cash Book A separate bank is used for each type of Cash Book. The cash book is required to be selected for each bank account.

VOUCHERS:

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The documents in supports of each transaction are called a voucher. Each activity/ transaction is to be recorded on the voucher. There are four types of vouchers.

Cash Vouchers:
All the vouchers pertaining to cash are called cash vouchers. The vouchers regarding cash receipts are called cash receipts vouchers while the vouchers regarding the cash payments are called cash payment vouchers

Bank Vouchers:
All the transactions relating to banks are recorded on the vouchers are called as bank vouchers. The vouchers regarding the receipts through banks are called bank receipt vouchers & the vouchers regarding the payments through banks are called bank payment Vouchers.

Journal Vouchers:
All other transaction are recorded on journal Vouchers e.g. regarding rectification of errors, miscellaneous classification, depreciation of fixed assets provision for bad debts

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PREPARATION OF VOUCHERS:
The vouchers are to be prepared by the accounting staff of an accounting unit. The information is recoded in the following ways. Three digits transaction type/ code is required to be entered on the voucher at the first stage.

The First digit indicates whether it is a bank entry, cash entry or direct entry. 1 is used for bank, 2 for cash and 3 for direct. The second digit represents the type of voucher and is coded as under.

1 or 2 3 or 4 5 or 6 7 8

for Receipt Voucher. for Payment Voucher. for Journal Voucher. for I.O.T and Cr. Note for S.S Cheques.

The third digit indicates the transaction type of the voucher i-e the detail of the accounts to be affected. Voucher number is to be left blank and will be automatically generated by the computer. It will be the next number falling in the serial. Enter the date on which the voucher is being prepared. In case of Payment Voucher the same date will be considered as date of issue of Cheque.

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Six digits account head code is required to be entered. First two digits represent the main account head, next two digits represent the sub account head and remaining two digits represent the detailed account head.

Enter the amount to be credited in case of receipt voucher and debited in case of payment voucher because debit in receipt voucher and credit in payment voucher is understood. The amount may either be written in rounded form or it may be written with two decimals points. As per accounting procedure two accounts are affected at the same time as a result of each transaction. Enter the title of account to which credit is raised in case of receipt voucher or debit is raised in case of payment voucher. In the next column the amount of voucher is narrated in words. Enter the Cheque/D.D. /P.O. /T.T. number along with date in case of bank vouchers. Name of bank as well as account number of concerned bank is entered in the respective column. In case of Journal Vouchers some accounts are debited by crediting some other accounts for each transaction. Account head code as well as amount debited/ credited in respect of each account must be written in the respective columns. Total of amounts written in the debit column must be equal to the amount written in the credit column. As the process of preparation of voucher is completed as per above procedure, the vouchers are presented to the P.C. Operator for entry purpose

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INTER OFFICE TRANSACTION(IOT): Debit & credit advises received from other as well as issued to other offices as well as issued to other is called as inter office transaction. Inter office transaction comprises of following major components Debit advice received & issued Credit advice received & issued S.S cheques received & issued

SUPPLIERS INFORMATION:

The information regarding all expected suppliers who are dealing with that proper Accounting Unit such as Name, Address, Phone Numbers and Fax Numbers are also entered at the time of implementation and will be used whenever required.

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Multan electric power company (MEPCO) Future Projects

PROJECTS ANNOUNCED BY THE PRESIDENT OF PAKISTAN Diamer Basha Dam Kurram Tangi Dam Project Munda Dam Project Akhori Dam Project

FEASIBILITY STUDY IN HAND (HYDROPOWER PROJECT)

Golen Gol Dasu Bunji Keyal Khwar Lawi Palas Valley (Chor Nullah) Spat Gah Basho Phandar Jabban Thakot Patan
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Tarbela LBOD STAGE-1 BADIN AREA DRAINAGE SYSTEM ONGOING PROJECTS

UNDER CONSTRUCTION DAMS

Gomal Zam Dam Project Mirani Dam Project Mangla Dam Raising Project Sabakzai Dam Project Satpara Dam Project

UNDER CONSTRUCTION CANALS

Rainee Canal Project Kachhi Canal Project Greater Thal Canal Project

UNDER CONSTRUCTION DRAINAGE PROJECTS

RBOD-I RBOD-III

UNDER CONSTRUCTION HYDROPOWER PROJECTS

Allai Khwar Hydropower Project Khan Khwar Hydropower Project
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It is the moral and professional duty of the directors, managers and executives toovercome the weakness and convert them into strengths, and get maximum benefits andopportunity from the prevailing resources.

Strength
The MEPCO top management is the combination of both experience and youngenergetic professionals which are proving to be the real strength of MEPCO. MEPCO website provides every information about MEPCO to the customers andinvestors. 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.

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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 profitabilityof 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.

Opportunities
The MEPCO is situated in the region where the customers are large in quantityand other necessary related product is easily available in the market. There is no competitor in the local market, there is a big opportunity to get moreshare. Buyers of MEPCO services are easily available in the local market. The extension plan of divisions by the MEPCO is very good to capture themarket. The MEPCO has maintained better relationship in the market which helps theMEPCO to increase the customers. The strategies of MEPCO are very strong which help them to get advantage sover the competitors.
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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

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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 there non cooperative behavior. They have provided me knowledge about MEPCO but not according to therequirement of internship due to much work load on the employees

Observation
I have observers that there is need of improvement in the MEPCO especially the building of the MEPCO is not according to the requirement of MEPCO. Sometime the employee dont 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 precautionfor employees of MEPCO

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Multan electric power company (MEPCO) Suggestions

The following are some suggestions about the MEPCO . Management should try create more understanding between different departments to increase their productivity. The top management should give the authority and flexibility t o every manager to make decisions according to the situation at any time and in the absence of the top manager. A proper training should be given to the employees and he workers to enhance their skills to increase their productivity and utility of the MEPCO. All the duties and responsibilities of the employees and thee workers should be clearly defined. The computer technology should also be used in decision making as well as instoring and feeding the data. There should be decentralization in decision making. The management should recruit right person for right job having proper knowledge related to the job. The management should here multi skilled workers to get economy of scales.

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Multan electric power company (MEPCO) 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 Merit, justice, fair play be the hallmark Transparency in all fields Accountability of everyone.

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REFRENCES:

Personal Observation www.mepco.com.pk Finance department section Accounts officers, Admin etc www.google/images.com

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Annexure

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