OVERSEAS PAKISTANIS FOUNDATION

USMAN AZIZ

01-120121-079

Internship Report submitted in partial fulfillment of the requirements

for the degree of Master of Business
Administration

At

Bahria University,
Islamabad, Pakistan

1
INTERNSHIP REPORT
ON

SUBMITTED BY:
USMAN AZIZ
01-120121-079
MBA (Finance)
SESSION Spring 2012 to June 2015

BAHRIA UNIVERSITY
(ISLAMABAD)

2
 PREFACE

I am submitting this report to show what I learned from working environment, and got

experience throughout the course of internship here, in OPF (Islamabad). Here I learned

many things which will be beneficial for me in my practical life. Here I became familiar with

the working environment of the office.

In preparation of this Report I have tried my best to provide all possible information about the

operations, functions and tasks of OPF in brief and comprehensive form. It also includes a

brief department work during internship. I have also tried my best to use simple and easy

words and language.

Finally internship report ends with some recommendations after identification of some

problems observed during the course of internship.

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 ACKNOWLEDGEMENT

First of all I am thankful to “ALMIGHTY ALLAH”. Who gave me the strength, patience,
courage and enthusiasm needed to write and complete this report, then to my friends who
assisted me in this effort and we worked daylong to accomplish this assignment and to my
parents who supported me financially and encouraged me morally. I have a debt of gratitude
to all my teachers who taught me throughout my academic career.

It was pleasure for me to be worked in Overseas Pakistanis Foundation. I am very thankful to

all the honorable staff and my incharge for their cooperation specially Mr. Muhammad
Shoaib Baqa and Mr. Zeeshan Ali Kazmi. I learnt a lot from this training program and this
would guide me a lot while selecting my career. I also know how to face the problems and
how to find out the ways for their solutions.

The preparation of this report was a massive undertaking but the highly competent and
experienced staff and officers of the Foundation, provided me with all assistance,
information, advice and suggestions that I needed which contributed importantly to this
report.

USMAN AZIZ
01-120121-079
MBA (FINANCE)
SESSION SPRING 2012 – JUNE 2015

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 I

DEDICATION

“Dedicated to my Family for their

efforts, support, encouragement and
confidence that enabled me to complete
this task”

5
 II

ABSTRACT

Overseas Pakistanis Foundation is a company limited by guarantee with the objects to

advance social welfare of the Pakistanis working abroad. The registered head office of the

foundation is situated at Islamabad. This internship report intends to cover the comprehensive

information and functional aspects of OPF. I worked in OPF to fulfill requirement of my

internship tenure. At the start of the report brief introduction of report is presented along with

history of OPF. After introduction, information about all the departments of OPF is presented.

These departments are discussed with its purposes and functionality. Then specific and

leading roles are explained which I performed during tenure of my 3 months internship. At

the end, main problems are identified and discussed that I observed during my internship

period.

In financial analysis, financial performance, Investment performance, and Profitability of the

foundation has been discussed after having detailed conversation with Manager and Senior

employees. After this, foundation performance has been highlighted with the help of ratio

analysis, vertical and horizontal analysis tools and result interpreted with its positive and

negative dimensions.

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In the final phase of the report SWOT analysis, Internship influence and References are

presented along with recommendations. Recommendations are based on findings that I found

during my internship period.

III

TABLE OF CONTENTS

Acknowledgment I

Dedication II

Abstract III

Chapter # 1

1. Introduction to the Organization 10

2. Overview of the Organization 11

Chapter # 2

1. Departments of Overseas Pakistanis Foundation 15

Chapter # 3

1. Internship Experience 30

2. My Learning Experience at OPF 35

Chapter # 4

1. Financial Analysis 40

2. Vertical & Horizontal Analysis of Organization 44

Chapter # 5

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 1. Swot Analysis 54

2. Pest Analysis 55

Chapter # 6

1. The Problems I Faced 58

2. New Knowledge Acquired 59

3. Recommendations 61

4. Conclusion 62

References and Sources Used 63

Appendix 64

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 CHAPTER # 01

INTRODUCTION OF OVERSEAS PAKISTANIS

FOUNDATION

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 CHAPTER # 1

1. Introduction to the Organization

1.1 Introduction

Overseas Pakistanis Foundation is an organization for welfare of Pakistanis working abroad

and their dependents in Pakistan with its Head Office in Islamabad and Regional Offices at

Karachi, Lahore, Peshawar, Quetta and Mirpur (AJK) and sub office at Multan.

This organization was,

 Established under Emigration Ordinance, 1979.

 Registered under Companies Ordinance on 8th July, 1979 as Company Limited by

Guarantee of Government of Pakistan.

 OPF is controlled by a BOG (Board of Governors) headed by the Federal Minister

of Overseas Pakistanis as its Chairman.

1.2 Vision

“Overseas Pakistanis Division aims at providing better services to overseas Pakistanis

through improved facilities at airports, setting up suitable schemes in Housing, Education and

Healthcare sectors; facilitating the rehabilitation of returning overseas Pakistanis, besides

ensuring that Community Welfare Attaches (CWAs) maintain close links with them to help

resolve their problems and locate new job opportunities for intending overseas Pakistanis.”

1.3 Functions

 Undertaking Welfare Schemes & Personalized Services for OPs.

 Establishment of Educational Institutions.

 Provision of Health Facilities.

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  Development of Housing Colonies.

 Assistance to overseas Pakistanis and their dependants at time of distress.

 Facilitation of incoming and outgoing Overseas Pakistanis at International Air

ports of Pakistan.

 Encouragement of Foreign Exchange Remittances through legal channels.

 Settlement of dues and outstanding claims of OPs with their employers abroad.

 Economic rehabilitation of overseas Pakistanis.

2. Overview of the Organization

2.1 Main Objectives

To advance the social welfare of the Pakistanis working or settled abroad and their families in

Pakistan by identifying their problems and by contributing to their solutions.

 To Establish & Manage:

 Housing Schemes.

 Educational institutions.

 Foundation offices & branches.

 To Receive & Manage:

 Welfare Fund created under the Emigration Ordinance 1979.

 The custodian-ship of security deposits of the overseas employment

promoters.

 To perform miscellaneous functions such as:

 Grant of scholarship to the deserving Overseas Pakistanis’ children and grants

to community centers, mosques, libraries etc.

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  Make policies, rules and regulations necessary for the management of the

Foundation.

 Make policies, rules and regulations necessary for the management of the

Foundation.

2.2 Sources of Finance

The major sources of finance of the Foundation are:

 Welfare Fund created under Emigration Ordinance, 1979 and rules made there under.

 Profit on Welfare Fund.

 Any other source.

2.3 Board of Governors

 The number of Governors shall not be less than seven but not exceeding nineteen.

 All the Governors are appointed by the Federal Minister.

 They are not entitled to any remuneration except that the actual expenses incurred
by them during the course of performing their duties.
 The board appoints a paid Secretary of the foundation who shall also be the
Secretary of the board.
2.4 No Of Employees

Total numbers of employees including contractual employees at the end of the year 2010
were 1,207 (According to the Admin records and audited Annual Report of OPF Year 2010).

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 2.5 Organizational Structure of OPF

Managing Director

GM GM Director Secretary GM Director Director Director

Internal Welfare Education OPF Housing OPPT/ HR Finance
Audit Div & & & MIS
Services Director Works
Administr
ation

J.D. G.M. J.D. G.M. G.M.

R.O. R.O. RO R.O. (South)
Peshawar Mirpur Lahore Quetta Karachi
(AK)

Reference: Admin record & www.opf.org.pk

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 CHAPTER # 02

DEPARTMENTS OF OPF

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 CHAPTER # 2

1. Departments of Overseas Pakistanis Foundation (OPF)

 Housing and Works Division

 Education Division

 Overseas Pakistanis Pension Trust (OPPT)

 Marketing Division

 Welfare & Services Division

 Administration & HRM Division

 Internal Audit Division

 Finance Division

1.1 Housing & Works Division

To cater for the Housing need of Overseas Pakistanis and to provide them residential

facilities, OPF has planned and established a number of housing schemes in different cities of

the country.

The plots created in these schemes are sold to Overseas Pakistanis in OPF’s housing schemes

located at the prime locations in the cities of Islamabad, Lahore, Gujrat, Peshawar, Larkana,

Dadu and Mirpur (AK)

1.1.1 OPF Housing Schemes

 Valley Zone-V Islamabad

 Raiwind Road (Phase-I) Lahore

 Raiwind Road (Phase-II) Lahore

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  Raiwind Road (Extension) Lahore

 Peshawar

 Dadu

 Gujrat

 Larkana

 Mirpur (AK)

 Rawat

i. Valley Zone-V Islamabad

OPF Valley Zone-V Islamabad is located on Japan road alongside the Sawan River, about 24

kilometers from Zero point. M/S NESPAK has been pointed the project consultant for

designing and planning of the scheme.

ii. Raiwind Road (Phase-I) Lahore

OPF Housing Scheme Raiwind Road (Ph-1) Lahore is located about 5 kilometers from

Thokar Niaz Baig. The scheme is completely developed.

iii. Raiwind Road (Phase-II) Lahore

OPF Housing Scheme Raiwind Road (Ph-II) Lahore is planed to be developed over an area of

App 627 Kanals 03 marlas.Out of which land measuring 559 Kanals and 4 marlas has already

been purchased whereas land measuring 67 Kanals and 19 marlas including existing pockets

and additional land adjoining to the boundary of the scheme area are required to be acquired

through Land Acquisition Act 1894.Efforts are underway to acquire/purchase for existing

16
pockets in the scheme area. Process for appointment of consultants for planning and

designing of the scheme is under process for approval.

iv. Raiwind Road (Extension) Lahore

OPF Housing Scheme Raiwind Road (extension) Lahore is located about 5 kilometers from

Thokar Niaz Baig adjacent to the phase-I.

v. Peshawar

OPF Housing Scheme Peshawar is located short of the main city, about 2.5 Kilometer from

the main GT road, near the Ring road. The scheme is planned over an area of 991 Kanals.

The infrastructure i.e. road, water supply and sewerage network is completed, whereas the

external electrification work of scheme is in process through PESCO. All residential plots

have already been allotted. Commercial plots in the scheme will be sold through open auction

after of the scheme. Possession of plots is also being handed over to those allotees who have

cleared the dues and interested for construction of houses on their plots.

vi. Dadu

OPF Housing Scheme Dadu is located on Dadu-Moro-Road. Total area of the scheme is 168

Kanals.

vii. Gujrat

OPF Housing Scheme Gujrat is located on Bhimber Road. It is spread over an area of 296

Kanals.The scheme is completely developed. Respective alloties have been asked to complete

construction of houses on their plot up to 30th September, 2007.

viii. Larkana

OPF Housing Scheme Larkana is located on Noudero Road. It is spread over an area of 228

Kanals of land. The scheme is completely developed and all the 430 residential and 24

Commercial plots in the scheme have already been allotted.

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 ix. Mirpur (AK)

OPF Housing Scheme Chatterpari Mirpur (AK) is located short of Mirpur city towards Dina.

The scheme is completely developed. Total 2,894 Residential and 187 Commercial plots in

the scheme were created.2, 547 Residential and Commercial plots have already been allotted

to the respective alloties and sale of remaining plots is suspended.

x. Rawat

OPF Housing Scheme Rawat, Rawalpindi is planed over an area of about 754 Kanals.Out of

which land measuring 624 Kanals has already been purchased from the land owners will

remaining 130 Kanals of existing pockets in the scheme area are to be acquired through land

Acquisition Act,1894.

xi. Allocation of Two Sectors D-13 & E-13 for Overseas Pakistanis

It has been decided by the OPF BOG (Board of Governors) to reactivate the housing sector of

D & E-13.The Prime Minister of Pakistan has also very kindly consented with the proposal’s

summary for formal approval by the Federal Cabinet has already been sent.Necassery steps

are under way to finalize the modality of joint venture between OPF and CDA.After sighning

of Memorandum of Understanding (MOU) and formal approval by the Federal cabinet,

acquisition process of land initiated by the OPF /CDA.

1.2 Education Division

Education Division was established in 1989 with the objective to look after the needs of the

children of Overseas Pakistanis in Education sector. In order to provide the quality education

to the children of Overseas Pakistanis, OPF has established educational institutions all over

the country.

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Twenty One OPF Public Schools and three Colleges at Rawalpindi and Islamabad have been

established so far. These institutions follow English as medium of education, lying due

emphasis on local languages and are affiliated with the Federal and respective Provincial

Boards of education and University of London and Cambridge for “O”/”A” levels purposes.

Due attention is given to the extra curriculum activities of the students. The total strength of

students is App 14, 058, with the number of OP’s children is around 1,508.

1.2.1 Colleges

OPF has established Three Colleges.

 OPF Girls College F-8/2 Islamabad with hostel facilities.

 OPF Boys College, H-8 Islamabad.

 OPF Girls College, Rawalpindi

1.2.2 Public Schools

21 Public Schools established at:

 Punjab (8) - Sialkot,Multan,Sheikhupura,Bhalwal,Dipalpur,

Gujrat, Kalar Sayedan, PakPattan.

 Sindh (4) - Dadu, Larkana, Sanghar, Badin.

 N.W.F.P (3) D.I.Khan, Mansehra, Hangu.

 Balochistan (3) - Quetta, Turbat, Pashtoonabad

 AJ & K (3) - Mirpur, Muzaffarabad, Kotli

1.2.3 Projects in Hand -CWIP

 School Building Sheikhupura

 School Building Hangu

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  Girls College Building Rawalpindi

 Girls College & Hostel Building at Quetta.

 Commercial Building At Lahore

1.3 Overseas Pakistanis Pension Trust (OPPT)

OPF has established a Self Contributory Pension Scheme for Overseas Pakistanis.

1. Membership of the scheme is voluntary and is open to all overseas Pakistanis.

2. Contributions by members are at fixed rates, for a predefined period.

3. Contributions received are invested in profitable investments and earnings net of all

costs are credited to individual pension accounts of the members.

4. Monthly Cash Stream Pension calculated on the basis of the annual earnings in each

account becomes due on maturity.

5. Option is available for total withdrawal from pension scheme at any stage.

6. All members of the scheme are covered through an insurance package arranged

through State Life Insurance to ensure immediate pension payment to family

without any further pension contributions, in case of death or disability of a member

before maturity.

1.3.1 PENSION PLANS (See Appendix 1).

Current Position/Achievement

 Total amount received in US $ 2.50 Million Equivalent to Pak rupees

149.562 Million.

 Total Members = 301

1.4 Marketing Division

1.4.1 Magazine Yaran-e-Watan

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OPF publishes a monthly magazine Yaran-e-Watan to update the Overseas Pakistanis about

the schemes of their interest and other related information.

1.5 Welfare and Services Division

The main services provided by this department are as follows,

1.5.1 Services Provided to Overseas Pakistanis at OPF

 Transportation of Dead Bodies

 Hotel facilities for Incoming Overseas Pakistanis

 Ambulance Service (free of cost)

 Complaint Cell

 Final Dues

 Study Tours to Pakistan for Overseas Pakistanis students

 Foreign Exchange Remittance Card

 Compensation /Assistance to the Gulf war affectees

 Free Fax Service

i. Transportation of Dead Bodies

In the event of death of any Pakistani worker abroad, dead body of the deceased is

transported back to Pakistan through PIA on charge collect basis. Meaning to say, PIA

transports the dead body on the production of certificate by the Pakistan Mission and

payment is made to PIA by OPF in Pak rupees after transportation of dead body. This facility

provided by OPF free of cost.

ii. Hotel facilities for Incoming Overseas Pakistanis

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OPF is its endeavor to enhance services to its members has arranged for hotel package for

Overseas Pakistanis offering specially discounted rates for the best accommodation.37

hotels/motel shall offer this facility on discounted rates to Overseas Pakistanis on the

presentation of OPF membership card.

iii. Ambulance Service (free of cost)

OPF also extends all possible help and provides the facility of an ambulance free of cost from

air port to deceased /disabled Ops native town/village. So far, this facility has been provided

in 1020 cases.

iv. Complaint Cell

OPF has received about 25,805 complaint of various Overseas Pakistanis for varies

individual cases regarding telephone,Sui gas,water,electricity, bank problems, crime and

property disputes. Out of these, about 18,880 cases had been settled.

v. Final Dues

A total of 12,306 cases of blood money, death compensation, disability/family pension,

insurance claims and all types of dues of Overseas Pakistanis are under process and are being

pursued through Pakistani Mission abroad. Welfare & Services division is approaching the

entire concerned mission abroad to expedite the action required for early settlement of these

cases. On account of OPF’s persistent efforts, it has succeeded in getting 5,601

vi. Study Tours

OPF has been organizing study tours for the younger generation of Overseas Pakistanis

settled in various countries, particularly in Western Europe and North America. The purpose

of such tours is to educate them about socio-economic developments in Pakistan and to

improve their awareness of their culture heritage.

In the past the Foundation has organized 13 such tours involving 151 male and 93 female

22
students. The result have been very encouraging, as the participants have described these

tours to Pakistan as a unique and lifetime experience, acquainting them with Pakistani

culture, heritage and current level of development .Within a span of twenty days they are able

to know more about Pakistan then their accumulated stay abroad.

vii. Foreign Exchange Remittance Card

Special Allowance for Foreign Exchange Remittance Card Holders:

OPF has launched a new scheme called the Foreign Exchange Remittance Card (FERC)

Scheme on behalf of Ministry of Finance to encourage remittances by Overseas Pakistanis

through normal banking channels. Under which non-resident Pakistanis remitting foreign

currency equivalent to at least US $ 2,500/- per annum and US $ 10,000/- or more per annum

to Pakistan shall be issued Silver and Gold cards respectively, which would make them

entitled to the following facilities:

i) Separate Counters for special handling at Arrival and Departure lounges at

airports (These Counters are become operational from 1 st September 2001 at all

the International airports of Pakistan.)

ii) Free issuance and renewal of passport on an urgent basis.

iii) Duty free allowance of personal baggage of a value of US $ 1000/-(in the case of

those who remit US $ 2,500/-) and US $2,000/-(for those who remit US $ 10,000/-

or more) during calendar year.

iv) A cardholder shall be entitled to import the following items duty free provided

that these are within the limits of permissible allowance to the Silver or Gold card

categories of worth 1,000/ US $ 2,000/ US $ respectively:

 Household items of any type operated only by solar energy.

 One deep Freezer or Refrigerator operated by Gas.

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  Gas appliances including cooking range (not more than one of any item).

 One Video cassette player or VCR(video cassette recorder) or One VCD or DVD

and

 Items of professional use.

 The duty credit under this scheme shall not be utilizable on import of vehicles.

NOTE: The Incentives are available for one year from the date of issuance of remittance cards.

viii. Compensation /Assistance to the Gulf War Affectees

OPF played a major role during Gulf war crises. A large number of Overseas Pakistanis

arrived in Pakistan from Kuwait without any belongings. At the time of their arrival in

Pakistan, camps were established by the OPF at Karachi,Lahore,Quetta and Taftan border to

facilitate the war affectees.These affected Overseas Pakistanis were paid a cash compensation

of Rs 6,000/- each.OPF contributed a huge amount of more than Rs 50 million for affectees at

the time of their arrival in Pakistan. After the Gulf war the task of compensation claims of the

war affectees was assigned to the OPF by the United Nations Compensation Commission

(UNCC)

ix. Free Fax Service

In case of an emergency the dependents of Overseas Pakistanis in Pakistan are provided free

fax facility by OPF Fax machines have also been installed at OPF head office as well as

Regional offices. OPF has introduced e-mail facilities for its members using the address

welfare@opf.org.pk.

1.6 Administration and HRM Division

Strategically, perhaps the most important division at the head office is responsible for human

resource management, including recruitment staff training and evaluation. The division also

24
handles matters relating to administration. This division operates on future oriented strategy

focusing on employee’s personal and professional growth.

Staff development activities are geared to enhance their capabilities for applying the

knowledge and facts towards development of practical situations. Under Foundation’s human

resource management policy, it develop and groom it’s management personal for positions of

greater responsibilities analytical, interpersonal, conceptualized and specialized skills to

enable them understand cause-and-effect relationships and to think logically.

1.6.1 HR Process in OPF

In OPF an effort to anticipate future business and environmental demands on an organization

and to provide qualified people to fulfill that business and satisfy those demands. HRP

includes talent inventories, human resource forecast, action plans, control and evaluation.

1.6.2 Methods to Forecast HR Needs

The purpose of human resource forecasting is to estimate labor requirements at some future

time period. In OPF there are two main methods of forecasting.

 Forecasting External Human Resource Supply

 Forecasting Internal Human Resource Supply

1.6.3 Forecasting External Human Resource Supply

Overseas Pakistanis Foundation regularly makes projections of external labor market

conditions and estimates of the supply of labor to be available in general categories. This

procedure of forecasting is helpful for the Organization find such projections of the external

labour market to be helpful in preventing surplus or deficits of employee.

1.6.4 Forecasting Internal Human Resource Supply

In Overseas Pakistanis Foundation under the method of internal forecasting a reasonable

starting point for projecting an Organization, future supply of labors its current supply of

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labor. Under this method the simplest type of internal supply forecast is the succession plan.

Succession plan may be developed for management, non-management employees or both in

OPF this process for developing such a plan includes setting a planning horizon, identifying

replacement candidates for each key position, assessing current performance readiness for

promotion, identifying career development needs, and integrating the career goals of

individuals with Organization goals.

1.6.5 Recruitment and Selection

In Overseas Pakistanis Foundation the process of recruitment and selection is very ethnic and

comprehensive as compared to the other organization in Pakistan. Although they adopted the

Government procedures but it give more accuracy and competency. All the selection and

recruitment are made purely on merit according to provincial quota of Government.

1.6.6 Sources of Candidates

Following are two main sources of candidates used in recruitment / selection process in OPF.

 Internal Source

 External Source

Procuring competent personnel requires positive recruitment efforts and the development of a

variety of recruitment sources. These sources must consider not only the nature and

conditions of the external labor market, but also the presence of qualified personnel who are

available to fill vacancies through internal promotions or transfers. Keep in mind the

requirement activities are integrated with diversity and Equal Employment Opportunity

(EEO) initiatives. Staffing needs must be anticipated sufficiently in advance to permit the

recruitment and development of fully qualified personnel.

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For proper administration of a cadre or post, the appointing shall cause seniority list of the

members for the time being of such cadre or post to be prepared but nothing herein shall be

construed to confer any vested right to a particular seniority in such cadre post.

1.7 Internal Audit Division

All organizations have strengths and weaknesses in their functional areas of business. For

analyzing the internal situation of the organization with regard to its management, marketing,

finance, operations and research and development, internal audit is performed. The internal

audit is executed parallel to the external audit. This process provides more opportunity for the

participants and the managers to understand the key areas within an organization.

1.7.1 Key Internal Forces

1. Marketing

2. Finance

3. Accounting

4. Management

5. Management Information System

6. Production/Operations

The audit division is responsible for checking and reporting on the management compliance

with the board’s policies and directives, as also the prudential regulations and other directives

of the Companies Ordinance 1984. However their role is not intended to just that of fault

finding; but also guiding and assisting to Regional offices and other Departments in

improving their operations.

The division is responsible for evaluating every aspect of the OPF's operations with the goal

of improving the effectiveness of risk management and internal control. There is also a

27
regional audit function attached to each area office; the nature of this business is of more

quality assurance rather than strictly audit. The regional audit report to the area General

Manager, and assist them in ensuring that there is proper compliance with all the relative

directives, and also that customer service standards are maintained and improved, at the

offices in the area.

1.8 Finance Division

Responsible for book keeping and accounts, this division at head office, prepare all financial

returns and the MIS through its management-reporting wing. The division is actively

involved in preparing market comparative analysis, consolidation of OPF's budgets, Salary of

employees, preparing employees Gratuity and Provident funds, its monitoring and constant

review of various financial indicators.

Finance division works as the backbone for the OPF’s operations. The division, which reports

directly to the Finance Director and Chief Executive of the OPF, has been instrumental in

preparation of Foundation’s business plans and future strategies. The budgetary performance

are constantly reviewed and through a sophisticated " monthly performance report” which is

a computer based program, the division provides feed back to the senior on strategic issue

like reasons for budgetary variance and methods to arrest negative performance factors.

Preparing the Foundation’s annual accounts and coordinating external audit is also a direct

function of the finance division. Through the dedicated efforts of staff at this division, the

Foundation enables it self to meet its requirements.

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 CHAPTER # 03

INTERNSHIP EXPERIANCE

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 CHAPTER # 3

1. Internship Experience

One of the most important aims of the student life is to express his/her correctly and

adequately. This was the believe in my mind when I first decided to go to Overseas Pakistanis

Foundation to complete my internship program.

Determined, Confident and Persistent in the pursuit of knowledge and learning, I was on my

way to OPF Head Office Shahraye Jamhuriat G-5/2, Islamabad early morning of June 3,

2013. Just a few days before, I had given the exams of my final semester. Normally I wanted

rest and recreation in July after the tiring class but this time I was anxiously waiting for the

start of my internship.

1.1 Structure of the Finance Department

There are 24 employees working in the finance department at different positions and handling

different financial tasks like preparation of Gratuity, Provident fund, Salaries of employees

Bank accounts, Deposits and Investments etc.

1.1.1 Functions of Finance Department

i. Budget

 Preparation & compilation of annual Budget Estimates for presentation to the

Board of Governors for its approval.

 Effective budgetary controls by periodic review.

ii. Accounts

 Maintenance of the Books of Accounts.

 Preparation of periodic and annual accounts, as per statutory provisions.

30
  Presentation of annual audited accounts to the SFC and the Board of Governors

for its approval.

iii. Financial Discipline

 Instituting a proper financial system.

 Maintenance of financial discipline and effective control, to safeguard interest of

OPF.

 To render financial advice and guidance to the various Divisions and Offices of

OPF.

 Pre-audit and processing of various payments.

 To keep effective control over expenditure in accordance with the approved

budget estimates and delegated financial powers.

iv. Collection of Welfare Fund and Financial Management

 Maintenance of the welfare fund collection bank accounts.

 Reconciliation of welfare fund.

 The Welfare Fund receipts are exempted from I. Tax since assessment year 1992-

93

 Maintenance of bank accounts of OPF.

 Investment of surplus funds in long terms and short terms securities / schemes, as

per Government instructions / policies.

 Maintenance of investment accounts.

 Periodic review of investment portfolio.

 Negotiation / meeting with financial institutions for better rate of profit.

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  Financial review of various proposal / activities initiated by various Divisions for

consideration of Managing Director and approval of the Board of Governors.

 To arrange meetings of the OPF Investment Committee to consider / review

investment of OPF funds.

 The Income from Investments and other resources are Taxable.

v. Annual Statutory Audit and Government Commercial Audit

 Arrangement for annual statutory audit and government commercial audit.

 Provision of records and related information to the Auditors for conduct of audit.

 Settlement of audit observations, if any.

 Coordination with the Ministry for Public Accounts Committee meeting.

vi. Taxation

 Filling of annual tax returns.

 Pursuance of taxation matters with relevant authorities and courts

 Guidance to Divisions / Offices on tax matters.

 Coordination with OPF Tax Consultants.

vii. Distribution Of UNCC Claims to Gulf War Effectees

 Maintenance of foreign currency and local currency bank accounts for UNCC

funds.

 Maintenance of record for receipt of funds from UNCC.

 Maintenance of record for disbursement of claims to the beneficiaries

 Preparation of cheques in favor of the beneficiaries.

 Financial verification of the cases, before release of cheques.

32
  Financial management of UNCC funds to earn profit.

1.1.2 OPF Investment Committee (OIC)

OPF Investment Committee (OIC) was constituted by OPF Board of Governor in its 83rd

meeting held on 22nd April, 2002. The committee was re-constituted in 90th Board meeting

held on 13th May, 2004 consisting of the following:

 Managing Director, OPF - Chairman

 Senior Joint Secretary, Ops Division- Member

 Member BOG - Member

 Member BOG - Member

 Member BOG - Member

 Director Finance, OPF - Member/ Secretary

1.1.3 Functions of OPF Investment Committee (OIC)

 To identify attractive and safe investment avenues, plan and submit proposals to

the BOG.

 To decide about long term investment of funds.

 To submit investment reports for information of BOG.

i. Investment Policy

OPF Investment Committee has been considering the proposals for placement / investment

of OPF Funds in private banks and Government securities in the light of instructions / policy

on banking facilities for public sector enterprises and local / autonomous bodies issued by

33
Government of Pakistan, Finance Division (Regulation Wing) vide its Office Memorandum

No.F.4(1)/2002-BR.II dated 2nd July, 2003.

ii. Working Balances

 Bank / financial institutions taking a deposit should have a minimum ‘A’ rating

(long term);

 Selection of banks/(s) should be transparent. The selection of the bank/(s) as well

as the terms of deposits will be approved by the concerned Board of Directors /

Governing Body on the basis of competitive bids from at least three independent

banks;

 In cases where total working balance of an enterprise exceeds Rs.10 million, not

more than 50% of such balance shall be kept with one bank;

 In case the rating of the deposit taking bank drops below ‘A’ the new deposits will

be shifted within a period of one month and old deposits within a period of two

months to a bank/(s) with at least ‘A’ rating; and

 Working balance limit of each organization should be determined with the

approval of administrative ministry in consultation with Finance Division. The

account of this working balance may be maintained in a current or saving bank

account.

iii. Surplus Funds.

Public sector entities are allowed to invest 20% of the total funds under management in the

non-government securities / TFCs / shares. Eligibility criteria of non-government investment

instruments will be as follows:-

34
  Non-government debt instruments should have a major rating category of ‘A’ and

above;

 Public listed shares/units should have a total return comprising the dividend paid

and appreciation in value, which exceeds the average six months Treasury Bills

rate for the last three years.

 managed by the public sector entity, whichever is lower; and

 Investment in shares of Greenfield project/companies will not be eligible.

 Initial Public Offerings (IPO’s) of shares of existing companies should have a

track record of three year profitability at least equal to the average of twenty best

performing companies on Karachi Stock Exchange;

iv. Others

 Setting up of an in house Investment Management Unit for assistance of the

Investment Committee.

 Use of the services of professional fund manager approved by SECP.

 Principal Accounting Officer of the Ministry concerned will be responsible for the

implementation of the instructions.

 Chief Executive of PSE/Local Autonomous Bodies will be required to issue a

certificate on annual basis that the instructions are being followed in respect of the

working balance and surplus funds of the organization.

2. My Learning Experience at OPF

2.1 Finance Division

35
I learned lot of things in finance division of OPF, it include the preparation of Gratuity

accounts, Provident fund, bank reconciliation statement, filling of deposit slips, accounts of

housing schemes etc. My main work was,

2.1.1 Gratuity

Gratuity is a voluntary extra payment made to certain service sector workers in addition to

the advertised price of the transaction. Such payments and their size are a matter of social

custom. Gratuity varies among cultures and by service industry.

i. My Experience

I learned to prepare the computerized data of all the employees of OPF including, head office
regional offices and schools for the year July 2008 to June 2009. After preparing the raw data

the next step was to verirfy that all the employees were included or not from the records of

salary. The data include the names of employees, their respected grades, basic pay and then

net pay after all deductions. The data was prepared seperatelly both for executives and non

executive employees.

After all the verification the final data was entered in their special computerized programme

made for Gratuity.

2.1.2 Employees Provident Fund

EPF grants employees retirement benefits via a body that is intended to manage their

savings.The EPF is intended to help employees from both private and non-pensionable public

sectors save a fraction of their salary in a lifetime banking scheme, to be used in an event that

the employee is temporarily or no longer fit to work. The EPF primarily applies to retirement,

but sickness, disabilities or unemployment are also covered. The EPF also provides a

framework for employers to meet legal and moral obligations to their employees.

36
As of 2007, the EPF functions by procuring at least 10% of each member's monthly salary

and storing it in a savings account, while the member's employer is obligated to additionally

fund at least 10% of employee's salary to the savings at the same time.

While in savings, a member's EPF may be used as investments for companies deemed

profitable and permissible by the organisation, from which dividends are banked to respective

members' accounts.

i. My Experience

I learned to prepare the computarized data of all the employees of OPF including, head office,

regional offices and schools. After preparing the raw data the next step was to verirfy that all

the employees were included or not from the records of salary and deductions. The data

include the names of employees and employer and employees contribution for provident

fund.The contribution includes 10% deduction from both of the parties. The data was

prepared seperatelly both for executives and non executive employees.

After all the verification the final data was entered in their special computerized programme

made for CPF.

2.2 Welfare and Services Division

As OPF is a welfare organization for the Pakistanis living abroad, so welfare department is a

key department. I also worked in welfare division of OPF. In this department Membership

cards are issued to the Pakistanis who are living abroad by provision of their valid passports

and valid visas. I also spend some of my time in this division and issued membership cards to

the OPs. These are computerized membership cards. The applicant provides the photo copies

of his/her valid passport, valid visa/work permit, ID Card/NICOP card ,bank draft of

Rs.2000/- in favor of OPF and two his/her passport size photographs to show that he is living

legally in the foreign country. In case he is having a seal of Protector of Emigrants on his/her

37
passport there is no requirement of bank draft. All the relevant data and information of

applicant is not only entered in computer but also manual records are kept.

During my internship period, I issued lot of membership cards by verifying the applicants

required documents and maintained their data.

2.2.1 Issuance of Membership Card

 When the applicant used to submit his/her membership form, I first verified all

the required legal documents of applicant and issued the membership number.

 Then the second step was scanning of the photograph of applicant.

 In the next step all the relevant data was entered in the computerized program.

 Finally when all the required data was entered in the program the command was

given to print the computerized membership card which was prepared within 5

to 10 minutes.

After printing, the membership card was given to applicant after taking his/her receiving

initials and phone number.

38
 CHAPTER # 04

FINANCIAL ANALYSIS

39
40
 CHAPTER # 4

Financial Analysis

1. Ratio Analysis of the Organization

1.1 Liquidity Ratios

i. Current Ratio

Current ratio is calculated as current assets divided by current liabilities. It shows a firm’s

ability to cover its current liabilities with its current assets.

ii. Quick Ratio

Acid Test Ratio is calculated as current assets fewer inventories divided by current liabilities.
It shows a firm’s ability to meet current liabilities with its most liquid (quick) assets.

Year 2007 2006

Current Ratio 11.75 11.42

Quick Ratio 2.86 2.01

Formula = Current Assets

Current Liabilities

Formula = Cash + Short-Term Investments + Receivables

Total Current Liabilities

Interpretation

In the year 2007, the Current ratio was 11.75:1 which indicates that as compared to previous

years, in this year the position of the foundation is better. It is important to note that a high

current ratio is indicative of good management practices.

41
While the Quick ratio is the refinement of current ratio. To arrive at this point, we need to

deduct short term investments and receivables from the current assets as it blocks the cash

requirement of the company. This is the most liquid point where organization can easily

gauge that how well organization has ability in cash to pay its short term requirements. This

ratio also shows an increasing trend.

2. Leverage Ratio

2.1 Debt Ratio

This ratio measures the proportion of total assets financed by the firm’s creditors.

Year 2007 2006

Debt Ratio 0.24 0.28

Formula = Total Liabilities

Total Assets
Interpretation

Higher this ratio greater amount of other people being used to generate profits, also mean

more financial leverage a firm has. Less leverage leads to strong equity position. This ratio

also called debt to asset ratio. In year 2007 the ratio decreased which shows the good sign of

management practices.

3. Asset Utilization/Turn-over Ratio

3.1 Total Asset Turnover Ratio

It measures relative efficiency of total assets to generate revenue.

3.2 Total Fixed Asset Turnover Ratio

It measures relative efficiency of fixed assets to generate revenue.

42
Year 2007 2006

Total Asset Turnover -0.019 -0.004

Fixed Asset Turnover -0.353 -0.077

Formula = Net Sales/Income

Total Asset

Formula = Net Sales/Income

Average Fixed Assets
Note: As the foundation has no sales account so total income is considered as sales.

Interpretation

Total asset turnover ratio measures the ability of the foundation to generate revenue

through the use of assets. It also includes that how much revenue contribution involved in the

whole business of the foundation. As per above figure, total Asset Turnover Ratio of the

foundation is increasing in a negative way, which is not a good sign, due to deficit in both

years.

The fixed asset Turnover Ratio measures the firm ability to make productive and optimum

utilization of its assets or property. It should be high one, OPF performance in this regard is

not satisfactory as its fixed assets turnover ratio in the year 2007 is decreased as compared

with previous year due to deficit.

4. Profitability Ratios

4.1 Operating Expenses/ Revenue

This ratio signifies the proportion of the revenues that is used to cover the operating expenses

of the foundation.

4.2 Return on Assets

This ratio indicates the profit earned by the foundation on the total assets employed.

43
Year 2007 2006

Operating Expenses/ Revenue (%) 115 101

Return on Assets (%) -1.95 -0.43

Formula = Operating Expenses

Net Revenue

Formula = Net income after taxes

Total Assets

Interpretation

Operating Expenses/Revenue ratio is showing that foundation is not earning sufficient

amount of revenues to meet the expenses of the operations operating on behalf of foundation.

As from the figures Return on assets ratio in year 2007 is less than that of balance in year

2006 which means that foundation’s return on assts in not satisfactory due to deficit

5. Capital Adequacy Ratios

5.1 Capital Funds to Total Assets Ratio

Year 2007 2006

Capital Funds to Total Assets Ratio 12.43 12.37

Formula = Capital Funds

Total Assets

Interpretation

This ratio indicates the extent of the funds employed by the foundation in the total resources
as shown in the balance sheet. This ratio has been increased in the current year with a very
low margin. For All Ratios References: (See Appendix 2 & 3).

44
2. Vertical and Horizontal Analysis of Organization

2.1 Vertical Analysis

An analysis of percentage financial statements where all balance sheet items are divided by

total assets and all income statements items are divided by net sales or revenues.

In addition to other financial ratios over time, it is often useful to express balance sheet items

and income statement items as percentages. Common –size Analysis, also called Vertical

Analysis, or Component Percentage, or 100 percent Statements as each statement is reduced

to the total of 100 and each individual item is stated as a percentage of the total of 100.

VERTICAL ANALYSIS OF THE BALANCE SHEET

2007 2006
ASSETS IN % IN %

NON CURRENT ASSETS

PRORETY,PLANT & EQUIPMENT 5.53 5.63
INTENGIBLE ASSETS 0.03 -
WORK IN PROGRESS ( HOUSING) 22.89 -
LAND AND DEVELOPMENT COST OF
HOUSING SCHEMES - 28.09
INVESTMENT IN OPF GIRLS COLLEGE 2.23 2.25
LONG TERM INVESTMENT 23.68 24.37
INVESMENT IN SUBSIDIARY 0.00 0.00
LONG TERM LOANS ADVANCES 2.86 2.39
LONG TERM DEPOSITS 0.03 0.03

CURRENT ASSETS
STORES 0.04 0.03
LOANS AND ADVANCES 0.79 0.65
SHORT TERM PAYMENTS 0.51 0.53
ACCRUED INTEREST 1.80 1.28
OTHER RECIVABLES 3.98 3.21
SHORT TERM INVESTMENTS 30.07 29.11
TAXATION RECOVERABLE 2.01 1.52
CASH AND BANK BALANCES 3.55 0.92
TOTAL 100 100

45
 LIABILITIES 2007 2006
IN % IN %
FUND AND RESERVE

63.3 59.6
WELFARE FUND 7 6
0.0 0.0
CAPITAL RESERVE 0 0
SPECIAL RESERVE (UNCC) EXCHANGE 0.2 0.2
FLUCTUATION RESERVE 2 2
INTEREST ON UNCC DISBURSMENT 11.8 11.7
BANK ACCOUNT 7 6
0.3 0.3
REVALUATION RESERVE 4 9

NON CURRENT LIABILITIES

24.1
ADVANCES RECEIVED FROM PLOTS - 4
19.0
PROGRESS BILLING-HOUSING SCHEMES 6 -
0.8 0.5
EMPLOYEES COMPENSATED ABSENCE 2 7
0.6
DEFERRED TAXATION 8 -

CURRENT LIABILITIES
3.5 2.4
TRADE AND OTHER PAYABLES 9 5
0.0 0.8
PROVISION FOR TAXATION 4 1

10 10
TOTAL 0 0

Reference: (See Appendix 2)

Interpretation of Assets

46
In 2007, on one hand non current assets are increased due to increase in work in progress of

housing schemes. Advances have also increased from 2.39% in the previous year to 2.86% in

the current year which may indicate that the foundation utilize the funds raised in the other

activities primarily lending to the financial institutions as it is the most secure source of

financing available in the economy.

On the other hand in current assets Cash, short term investment, accrued interest is also

increasing. The property plant and equipment of the foundation is showing a little portion of

the foundation’s total assets.

In the last the foundation is over all showing a good financial health and is going on healthy

tracks in near future it has no risk of bankruptcy. Although the foundation is showing good

results but we can’t say that these are the best conditions prevailing in the foundation as we

are unaware of the market conditions and can’t compare it with other welfare organizations.

Interpretation of Liabilities

The liabilities and capital reserves are side components of the foundation showing the

relationship as compared with the total of the liabilities and capital reserves. The welfare fund

is showing more percentage than the previous year by 3.71%. However it is also evident from

the data that the progress billing housing schemes, deferred tax and payables are increasing.

Reference: (See Appendix 2).

47
 VERTICAL ANALYSIS OF THE REVENUE AND EXPENDITURE
ACCOUNT
2007 2006
IN % IN %
REVENUE
INTEREST ON WELFARE FUND BANK
DEPOSITS -265.93 -1171.89
HOUSING DIVISION -0.08 -59.32
WELFARE DIVISION -2.04 -13.08
TRAINNING DIVISION -0.16 -2.28
EDUCATION DIVISION -140.42 -545.84
PUBLICITY AND MARKETING CELL -0.26 -1.27
SERVICE CHARGES- UNCC -0.78 -62.77
OTHER INCOME -38.57 -172.61

EXPENSES
HOUSING DIVISION -19.07 -62.61
WELFARE DIVISION -55.48 -366.92
TRAINING DIVISION -6.93 -66.36
EDUCATION DIVISION -174.33 -695.48
PUBLICITY AND MARKETING CELL -9.42 -30.56
ADMINISTRATIVE EXPENSIS -187.56 -748.65
PROVISION FOR EARNED LEAVES -20.09 -37.56
PROVISION FOR GRATUITY FUND -42.38 -30.71

DEFICIT FROM OPERATIONS 67.04 9.80

PROFIT OF HOUSING SCHEMES -4.19 0.00

OTHER EXPENSES 0.02 0.09
DEFICIT BEFORE TAXATION 62.87 9.89
PROVISION FOR TAXATION
CURRENT -2.48 -90.11
DEFERRED -34.66 0.00
DEFICIT AFTER TAXATION 100 100

Reference: (See Appendix 3)

Interpretation

48
The most important component of any organization is its revenue and expense account, which

shows its overall performance. As OPF is a welfare organization works for the betterment for

Pakistanis living abroad, so earning profit is not its main objective. However we observe that

in 2007 the performance is not good as compare to previous year. The revenues increased

little bit but the expenses increased more than the previous year, which shows negative

performance, and organization showing a loss due to more gratuity payments and more

deferred taxation.

Reference: (See Appendix 3).

2.2 Horizontal Analysis

Trend Analysis, also called Horizontal Analysis of the financial statements is one directional-

upward or downward analysis and involves the computation of the percentage relationship

that each statement item bears to the same item in the base year.

HORIZONTAL ANALYSIS OF THE BALANCE SHEET

2007 2006 2005

49
 IN % IN % IN %
ASSETS

NON CURRENT ASSETS

102.
PRORETY,PLANT & EQUIPMENT 102.14 72 100

INTENGIBLE ASSETS - - 100

116.
WORK IN PROGRESS ( HOUSING) 82.57 43 100
LAND AND DEVELOPMENT COST OF HOUSING 100.
SCHEMES 124.57 69 100
100.
INVESTMENT IN OPF GIRLS COLLEGE 100.00 00 100
98.
LONG TERM INVESTMENT 96.35 48 100
100.
INVESMENT IN SUBSIDIARY 100.00 00 100
131.
LONG TERM LOANS ADVANCES DEPOSITS 157.04 96 100

CURRENT ASSETS
STORES 109.06 83. 100
64
2007 2006 2005
LOANS AND ADVANCES, OTHER RECIVABLES, 178.26 141. 100
LIABILITIES
PRE PAYMENTS & ACCRUED INTEREST IN % IN % 82 IN %

SHORT TERM INVESTMENTS 110.08 105. 100

FUND AND RESERVE
89
132.1 123.6
TAXATION RECOVERABLE 219.12 164. 100
WELFARE FUND 6 1 100
03
100.0 100.0
CASH AND BANK BALANCES 333.12 85. 100
CAPITAL RESERVE 0 0 100
85
SPECIAL RESERVE (UNCC) EXCHANGE 100.0 100.0
FLUCTUATION RESERVE 6 6 100
INTEREST ON UNCC DISBURSMENT BANK 104.6 103.0
ACCOUNT 8 0 100
119.7 136.2
REVALUATION RESERVE 8 9 100

NON CURRENT LIABILITIES

99.4
ADVANCES RECEIVED FROM PLOTS - 0 100
PROGRESS BILLING-HOUSING SCHEMES - - 100
145.3 106.1
EMPLOYEES COMPENSATED ABSENCE 7 0 100
DEFFERED TAXATION - - 100

CURRENT LIABILITIES
TRADE AND OTHER PAYABLES 134.4 91.0
50 2 9 100
PROVISION FOR TAXATION 6.3 114.7
8 6 100
 Reference: (See Appendix 2)
Interpretation

First we discuss the assets side of the Organization. The performance in 2007 is much better

than previous years. In non current assets, the cost of housing schemes and long term loans

and advances are increased. In current assets all the item are increased. On the other hand in

liabilities the welfare fund is increased and revaluation reserves are decreased and in non

current liabilities the employees compensation and payables are increased at a huge amount

from the previous years. Reference: (See Appendix 2).

HORIZONTAL ANALYSIS OF THE REVENUE AND EXPENDITURE

ACCOUNT
2007 2006 2005
IN % IN % IN %
REVENUE
INTEREST ON WELFARE FUND BANK DEPOSITS 186.34 180.77 100
HOUSING DIVISION 36.84 60.52 100
WELFARE DIVISION 112.18 158.25 100
TRAINNING DIVISION 20.27 63.76 100
EDUCATION DIVISION 112.32 96.12 100
PUBLICITY AND MARKETING CELL 50.07 54.92 100
SERVICE CHARGES- UNCC 24.05 42.65 100
OTHER INCOME 132.62 130.67 100

EXPENSES
HOUSING DIVISION 129.76 93.79 100
WELFARE DIVISION 98.72 143.74 100
TRAINING DIVISION 53.39 112.48 100
EDUCATION DIVISION 120.61 105.93 100
PUBLICITY AND MARKETING CELL 179.08 127.92 100
ADMINISTRATIVE EXPENSIS 121.26 106.55 100
PROVISION FOR EARNED LEAVES - - 100
PROVISION FOR GRATUITY FUND - - 100

51
 DEFICIT FROM OPERATIONS -52.05 -36.74 100
PROFIT OF HOUSING SCHEMES - - 100
OTHER EXPENSES 47.04 47.04 100

DEFICIT BEFORE TAXATION -48.83 -39.69 100

PROVISION FOR TAXATION
CURRENT 7.77 62.23 100
DEFERRED - - 100

DEFICIT AFTER TAXATION -24.96 -5.49 100

Reference: (See Appendix 3)

Interpretation

The performance of Organization is good both in 2007 and in 2006 with respect to revenue as

compare to 2005. As the amount of interest and income from education division and other

income showing profit, but on the other side the expenses are also increased from the same

speed in both years as compare to base year in almost every department and causes the

deficit and showing the negative performance, which is not a healthy sign.

Reference: (See Appendix 3).

52
 CHAPTER # 05

COMPANY ANALYSIS

53
 CHAPTER # 5

1. SWOT Analysis

1.1 Strengths of the Organization

 Very good accounting system is in place.

 A transparent system for assets acquisition is in placed.

 There is proper internal control over purchase of assets acquisition.

 Disposal through open auction is also very transparent.

 Pick & drop facility to the employees of the Organization

 Very effective platform to meet the Overseas Pakistanis from all over the world

 Free Medical facility for employees.

 Concession in tuition fee for the children of Overseas Pakistanis as well as

employees of Foundation.

1.2 Weaknesses of the Organization

 Members of Board of Directors are not the employee of OPF.

 Poor Planning regarding the recruitment of contract employees.

 Bad labor, management relations.

 Promotion criteria are not excellent.

 Lack of communication between staff and management.

 Ideas and suggestions are not encouraged.

 There is no concept of creativity.

 Late coming of executive staff creates problems for non executive staff.

1.3 Opportunities of the Organization

54
  Most of OPF Schools/Colleges are not running well, a careful planning and

interest can turn them into profitable institutions in future.

 The higher authorities should take serious action to cut down extra expenditures.

 The new recruitment should be on merit.

 They should improve the standard of services particularly for OP’s.

 Proper marketing techniques should be use to increase the revenue.

1.4 Threats of the Organization

 The percentage of the Political influence of the employees in the foundation is

increasing as compare to the past five years.

 The management should take serious action against the recruitment under political

influence.

 OPF should take the serious action to increase the members (Overseas Pakistanis)

 The work on the housing schemes is very slow, try to work fast to keep and

increase the interest of the Pakistanis as well as Overseas Pakistanis.

 Political influence.

2. PEST Analysis

PEST is the Acronym for:

P- Political

E- Economical

S- Social

T- Technological

2.1 Political

The political situations are very important for proper working of any organization owned by

55
the Government of that country. Due to political instability and interference, the performance

of the organization decreases and that situation also leads to decrease in employee’s

performance, job commitment and efficiency e.g. political recruitments or references of the

political and influential people. As OPF is a government organization so it has a high political

effect.

2.2 Economical

Economical situation are also very important for public owned organizations. When the

economic conditions of the government are not in a good position the government is unable

to provide the required funds and not in a position to boost up the economic position of the

organizations to meet the inflation and other challenges. The OPF is providing economic

rehabilitation facilities to the Pakistanis living abroad e.g. Bila Sood Qarz Scheme, Financial

Aid Scheme and Settlement of Dues Cases etc.

2.3 Social

Socially when the productivity of publicly owned organizations increases the confidence of

employees and customers also increases, which help to build a good name and repute of the

organization which leads to more confidence, reliability and satisfaction, so it boosts up the

economy. As OPF is a welfare organization so it is involve in the social welfare of the

Pakistanis living abroad.

2.4 Technology

Technological advancements are very important to compete globally. From technological

advancement the work can easily be done, quality of services and products improved. The

technology safe the precious time of both, customers and employees. Customers are more

satisfied and customer’s loyalty also increased. OPF is now having an up to date technology

for the welfare of the Pakistanis living abroad.

56
 CHAPTER # 06

CONCLUSION & RECOMMENDATIONS

57
 CHAPTER # 6

1. The Problems I Faced

1.1 Lack of Communication among the Employees

During the period of my internship I found this problem as a biggest problem that, employees

were not very effective in communication. They did not share the experience with each other

and did not care the other employees. If one employee had a problem, he asked from other,

but the other did not give clear solution to that problem. They used to show the facial

expressions against each other. They used to talk against each other in front of me. So, finally

it is very needy for a public services organization to keep atmosphere friendly among the

management and employees. In my opinion in Foundation there is lack of communication

skills among the employees.

1.2 Lack of Commitment

Lack of commitment was also a big problem faced by the OPF. Employees were not

committed to the work and their duties. This was very common problem. Top management

was also not very committed to this Foundation. So, I finally concluded that there was a lack

of commitment from employees and top management.

1.3 Low Efficiency of Employees

Efficiency of employees was also low in this Foundation.

1.4 Not Very Regular and Punctual

Regularity and punctuality shows the character of a big and good executive. But this problem

58
was also faced by the OPF; many executives were not come at time.

1.5 Lack of Computing Skills

Computing skills were also low, some executive are very efficient in computing skills but

some were not totally aware from this system.

1.6 Misuse of Resources

Resource are very needy, so there must be avoid to misuse the resources but in this

foundation it was reverse case, there was very wrong use of the resources, employees did not

take care of resources and not used them in right direction. For example wrong printing, extra

printing, after service time.

Finally it is suggested that if these problems are solved there are much more chances for

increase the performance of OPF.

2. New Knowledge Acquired

During the internship there is practical knowledge acquired about the field of finance. What

activities are performed by organizations and how to deal with public? Also commitment

about work and operations of organizations. Financing and credits and other public services

are performed by the organizations and much learns about the various executive’s

experiences and their skills. What is role of higher authority (manager) in decision making

and how to solve the problems? How much money or reserves are used to meet the

requirements in the foundation.

59
Doing the internship was a wonderful experience for me but as far as preparation of the report

is concerned it was the most difficult part of the project. Preparing for report become most

difficulty and tedious as most of the information was not available not only on net but also

from the foundation also. I was unable to get the following material.

 History of the Foundation

 Accounts related information

 Career ladder

 Job description

I was fortunate to have wonderful Annual reports of the foundation. Especially it was rested

according to the circular of the Companies Ordinance 1984, therefore it was quite easy for me

to analyse the income statements of the foundation. There are some other necessary

requirements for doing the financial analysis of the income statements i.e.

 Information about the trends prevailing in the market,

 And information regarding the positions of the competitors of the foundation that

is the reason that I was unable to depict the true picture of the financial position of

the foundation.

 I was also unaware about the off balance sheet finance of the foundation so, can

say nothing regarding the true liabilities of the foundation.

Anyhow, it was a very learning experience for me that I will never forget in my entire life.

60
3. Recommendations

After spending six weeks at different departments of the foundation, interacting with the

employees, getting their views, observing the organizational structure and design, I have

come up with the following suggestions that in my view, will definitely improve a few

weaknesses observed in the foundation by me.

 Members of Board of Directors must be employees of OPF.

 Eliminate political influences.

 Establish policy to accommodate the contract employees.

 Improve CBA and Management relations.

 Up-gradation / promotion criteria.

 Need to reduce communication gap between executive and non executive staff.

 The work on housing schemes is very slow, they should improve their strategies.

 Provide proper training to the staff.

 They should improve the standard of services particularly for OP’s.

 Employees should be punctual and come on time.

 Most of OPF Schools/Colleges are in huge deficit which create a lot of problems

in future.

 The higher authorities should take serious action to cut down extra expenditures.

 Different computer training programs can enhance the employees’ performance.

 Refresher Courses for the staff are most important in any international

organization. All the employees should have these courses according to their

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 requirements.

4. Conclusion

Overseas Pakistanis Foundation is a company limited by guarantee with the objects to

advance social welfare of the Pakistanis working abroad. According to my point of view there

are many deficiencies in the organization. They have poor recruitment and selection criteria

to appoint employees. The main cause is management and political pressure. There is no

concept to evaluate training need assessment of employees; training is given just after a fixed

time by management and to the some selected employees and departments. Performance is

evaluated by using some performance appraisal methods only, they should be change.

Similarly no motivation, appreciation is given to employees on excellent performance.

All Compensation and benefit of hardworking, capable, intelligent, willing worker and

incompetent employees are same. There is gap between officers and staff which is needed to

reduces immediately to establish friendly working environment, to exchange views, ideas,

and suggestions, to discuss the problems of organization freely.

Organization need to overcome its weaknesses and improve the performance of all the

departments to enhance organizational performance, importance, and protect employee’s

rights.

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References and Sources used:-

PRIMARY DATA

 Personal Observations.

 Interview with OPF personnel.

 Informal meetings with OPF personnel.

SECONDARY DATA

 Internship Reports on OPF.

 Journals and newspapers.

 Unpublished documents available at each department.

 Annual reports of OPF year 2006 and 2007.

 OPF website (http:// www.opf.org.pk)

 http:// www.google search.com

 http:// www.wikipedia.com

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Annexure/Appendices

Appendix-1

Type Contribution(Rs) Period OF Maturity Expected Pension

Of Plan Contribution After Payment On
Maturity(Rs)/ PM
Plan - A
A-01 120000 LUMP SUM 5 years 1541
A-02 120000 LUMP SUM 10 years 2482
A-03 120000 LUMP SUM 15 years 3997
Plan - B
B-01 24000 Per Annum For 10 years 3355
10 Years
B-02 24000 Per Annum For 15 years 6689
15 years

Credit to members @ 10% per annum net of all costs

Reference: -Admin record & www.opf.org.pk

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 Appendix-2

OVERSEAS PAKISTANIS FOUNDATION

BALANCE SHEET AS AT 30 JUNE 2006 & 2007

2007 2006
ASSETS RUPEES RUPEES

NON CURRENT ASSETS

216,924,68 219,381,23
PRORETY,PLANT & EQUIPMENT 3 9
1,213,86
INTENGIBLE ASSETS 8 -
898,105,00
WORK IN PROGRESS ( HOUSING) 0 -
LAND AND DEVELOPMENT COST 1,095,232,33
OF HOUSING SCHEMES - 6
INVESTMENT IN OPF GIRLS 87,647,12 87,647,12
COLLEGE 7 7
929,472,56 950,003,84
LONG TERM INVESTMENT 3 9
INVESMENT IN SUBSIDIARY 110,200 110,200
112,062,73 93,103,74
LONG TERM LOANS ADVANCES 9 1
1,064,99 1,061,31
LONG TERM DEPOSITS 5 1

CURRENT ASSETS
1,763,29 1,352,17
STORES 9 7
30,886,75 25,376,42
LOANS AND ADVANCES 4 8
20,063,02 20,473,76
SHORT TERM PAYMENTS 7 4
70,562,40 49,986,73
ACCRUED INTEREST 8 3
156,246,90 125,131,21
OTHER RECIVABLES 9 8
1,180,089,1 1,135,093,21
SHORT TERM INVESTMENTS 85 8
79,005,22 59,141,26
TAXATION RECOVERABLE 7 5
139,143,30 35,861,17
CASH AND BANK BALANCES 6 6

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 TOTAL 3,924,361,290 3,898,955,782

2007 2006
FUND AND LIABILITIES RUPEES RUPEES

FUND AND RESERVE

2,486,946,5 2,326,060,38
WELFARE FUND 53 7
156,25
CAPITAL RESERVE 0 156,250
SPECIAL RESERVE (UNCC) EXCHANGE 8,648,75 8,648,75
FLUCTUATION RESERVE 4 4
INTEREST ON UNCC DISBURSMENT 465,850,55 458,367,71
BANK ACCOUNT 6 1
13,277,90 15,107,77
REVALUATION RESERVE 6 7

NON CURRENT LIABILITIES

941,290,85
ADVANCES RECEIVED FROM PLOTS - 1
PROGRESS BILLING-HOUSING 747,879,50
SCHEMES 5 -
32,185,91 22,139,96
EMPLOYEES COMPENSATED ABSENCE 3 6
26,582,90
DEFFERED TAXATION 6 -

CURRENT LIABILITIES
141,074,65 95,593,63
TRADE AND OTHER PAYABLES 8 3
1,758,28 31,590,45
PROVISION FOR TAXATION 9 3

TOTAL 3,924,361,290 3,898,955,782

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 Appendix-3

OVERSEAS PAKISTANIS FOUNDATION

REVENUE AND EXPENDITURE ACCOUNT
AS AT 30 JUNE 2006 & 2007

2007 2006
Rupees Rupees
REVENUE
INTEREST ON WELFARE FUND BANK DEPOSITS 203,981,761 197,886,619
HOUSING DIVISION 64,611 10,016,149
WELFARE DIVISION 1,565,400 2,208,217
TRAINNING DIVISION 122,534 385,320
EDUCATION DIVISION 107,705,069 92,170,858
PUBLICITY AND MARKETING CELL 195,997 214,955
SERVICE CHARGES- UNCC 597,617 10,598,768
OTHER INCOME 29,582,383 29,146,532
343,815,372 342,627,418
EXPENSES
HOUSING DIVISION 14,628,433 10,572,849
WELFARE DIVISION 42,552,906 61,958,838
TRAINING DIVISION 5,318,970 11,205,375
EDUCATION DIVISION 133,720,047 117,438,573
PUBLICITY AND MARKETING CELL 7,224,776 5,160,605
ADMINISTRATIVE EXPENSIS 143867140 126,416,981
PROVISION FOR EARNED LEAVES 15413000 6,342,848
PROVISION FOR GRATUITY FUND 32,510,084 5,185,586
395,235,356 344,281,655

DEFICIT FROM OPERATIONS (51,419,984) (1,654,237)

PROFIT OF HOUSING SCHEMES 3,213,153 -

OTHER EXPENSES (15,000) (15,000)
DEFICIT BEFORE TAXATION (48,221,831) (1,669,237)
PROVISION FOR TAXATION
CURRENT 1,899,154 15,216,843
DEFERRED 26,582,906 -

DEFICIT AFTER TAXATION (76,703,891) (16,886,080)

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