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Internship Report on MEPCO Submitted To: Mr. Imran PashaSubmitted By:
Faiq Ali RazaClass: MPA[E]Roll No:
MPA-E-16 Session: (2016 -2018) #Department of Political Science
Bahauddin Zakariya University, Multan
ACKNO WLEDGEMENTWe are thankful to Allah Almighty, Who have us the strength and
ability to retain drop from the ocean of knowledge and stand where we are, and to
His beloved Prophet Muhammad (PBUH) Who is teacher and guide to all mankind. I
extend special thanks to my family members, without their help I cannot stand where
I am now. I express my heartiest respect and gratitude to my Teachers who made me
able to complete this project to fulfill all the requirements. At the end I want
to thank all those who were involved in this Project directly or indirectly and
helped me during the completion of this Project.
DedicationWhen a person does a good work then there is an inspiration who becomes
able that person to do that. And that inspiration may be from his parents, friends
and teachers. I dedicate my work to my beloved parents who support me at any stage
and to my teachers and especially to Respected Sir,Imran pasha who gave me
confidence and time to do this and to my friends.
CO NTENTS Description
Acknowledgement ivINTERNSHIP
REPO RT Introduction
1 Authority (WAPDA)
1Power Wings
2Water Wing 3 mepco
Company Profile
4O bjectives 5 O ther
Accounting Units 6 WAPDA Hospital
6 structure of finance department
7Finance Director
7Sections of Dept.
8FINANCIAL ANALYSIS REPO RT 12Introduction to
Financial Statement Analysis Financial statements
12Users of financial statement
analysis 13Financial statement analysis
(FSA) 14O bjective of FSA
14Method of FSA
14Findings 21
Recommendations 22
INTRO DUCTIO N TO THE O RGANIZATIO N WAPDAWAPDA (Water and Power Development Authority)
is the controlling body of MEPCO & other Power Generation & Distribution Companies
in Pakistan. The Pakistan Water and Power Development Authority, was created in
195 8 as a Semi-Autonomous Body for the purpose of coordinating and giving a unified
direction to the development of schemes in Water and Power Sectors, which were
previously being dealt with, by the respective Electricity and Irrigation
Department of the Provinces. The Authority comprises of a Chairman and three
Members working through a Secretary. WAPDA is one of the largest employers of human
resources in Pakistan. The Charter of Duties of WAPDA is to investigate, plan and
execute schemes for the following fields: Generation, Transmission and Distribution
of Power. Irrigation, Water Supply and Drainage. Prevention of Water logging and
Reclamation of Waterlogged and Saline Lands. Flood Management. Inland Navigation.
Power Wing:WAPDA has built-up a reservoir of Technical know-how and expertise which
has made it a modern and progressive organization. Member (Power) currently heads
power wing. Power wing of WAPDA comprising of Generation, Transmission and
Distribution has been restructured into thirteen (13) public limited companies.
These thirteen Corporate Entities are as follows:FO UR Thermal Power Generation
Companies (GENCO s) .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 Muzaffar Garh. Kot Addu Power
station (KEPCO ) Head Quarter at Kot Addu Punjab.O ne National Transmission & Power
Dispatch Company (NTDC) .NINE Distribution Companies (DISCO s) .LESCO Lahore
Electric Supply Company, Lahore.GEPCO Gujranwala Electric Power Company,
Gujranwala.FESCO Faisalabad Electric Supply Company, Faisalabad.MEPCO Multan
Electric Power Company, Multan.PESCO Peshawar Electric Power Company,
Peshawar.HESCO Hyderabad Electric Supply Company, Hyderabad. QESCO Quetta
Electric Supply Company, Quetta.8. IESCO Islamabad Electric Supply
Company, Islamabad.9. SEPCO Sukkar Electric Power Company, Sukkar. Water
wing:In 195 9, 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 196 0 to develop replacement works for management of river
water and irrigation system. Since then it has been engaged in building water
development projects which include extensive research and investigation to augment
countries water resources.
MEPCO CO MPANY PRO FILEMultan Electric Power Company Limited is a public limited
company incorporated in Pakistan. The Company was established to takeover 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, having a project called �Village Electrification and
European Commission�. Through these projects electricity has been provided in
mostly rural areas. MEPCO is one of the biggest �Distribution Company� of
WAPDA. The principal activity of the company distributes and supply of electricity
to public within defines geographical boundaries. MEPCO area of operation is from
�Sahiwal to Sahibabad�, �Bahawal Nagar to Bahawal Pur� and �Tounsa Sharif to Rajan
Pur� and boundaring with Sindh, Balochistan and NWFP map.O BJECTIVES O F STUDYING THE
O RGANIZATIO NAs part of restructuring of WAPDA, �Multan Electric Power Company�
(MEPCO ) has been formed to take over the functions and operation of MAEB. It is the
one of nine (9) Distribution Companies that has been formed out of WAPDA�s present
distribution system.MEPCO has been working vigorously to meet the challenges to
provide the Electricity in the whole MEPCO region. A measure of this understanding
is progressive measure such as establishment of �VILLAGE ELECTRIFICATIO N & EURO PEO N
CO MMISSIO N PRO JECT� to provide electricity in the whole region, the area of MEPCO
is increasing day by day now the total Divisions in MEPCO are 6 7.It is one of the
biggest companies among WAPDA.MEPCO (H.Q) The site is situated at Khanewal Road,
WAPDA Colony, Multan, which is central place of Multan City. It is Head Quarter of
Multan Electric Power Company. The Company�s main office is also situated in this
colony just like.O FFICE O F THE CHIEF EXECUTIVE.O FFICE O F THE FINANCE DIRECTO R.
O FFICE O F THE MANAGER (INTERNAL AUDIT) O FFICE O F THE MANGER PLANNING.O FFICE O F THE
MANGER INVENTO RY CO NTRO L.O FFICE O F THE PRO JECT MANGER (CO NST) In the MEPCO Colony,
there are beautiful office buildings, residential bungalows, quarters, rest house,
and bachelor hostel. MEPCO Hospital and very beautiful Mosque. There are also
playgrounds for the employee�s children. There is a proper system for protective
measures. Security guards are detained at main gate for proper checking and control
in order to avoid of any mishap.O THER ACCO UNTING UNITSIn addition to offices
mentioned above, there are other offices which ensure the supply of the Electricity
to the customers and facilitate the collection of Electricity bills from customers.
O ffice of Deputy Manager O peration (XEN) (37 O ffices) O ffice of
Assistant Manager Customer Service (R.O ) (37 O ffices) Each Accounting Unit has an
accountant which report to Finance Directorate in respect of all financial &
accounts mattersWAPDA HO SPITAL:The company provides the free medical facility to
its officer / officials. The officials who have not availed free medical facility
they are allowed cash medical allowances according to employee�s policy. But they
can consult the specialist at company�s expenses and in emergency they can availed
such facilities as special case.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 WAPDA (MEPCO ) employees could enjoy only one facility i.e.
Medical facility or Medical Allowance. This proposal is under process.STRUCTURE O F
FINANCE DEPARTMENTFINANCE DIRECTO R:The Finance Director is also working under the
administrative control of Chief Executive MEPCO Multan. The function of this office
is to obtain the data from O peration Divisions and to reconcile and prepare
consolidated report of the company. The Finance Director is responsible for
preparation of company�s Profit and Loss Accounts, Balance Sheet and Cash Flow
statements, required by the Company�s O rdinance 1984. The Finance Director also
approves the Bills of heavy expenditure of different nature. This office is also
responsible for preparation of annual budget of this office and other Divisions of
the Company and also monitors the budget. The revenues of the company, collected by
the authorized bank branches are transferred to Main Accounts of the Company, are
also maintained by the Finance Director. The Finance Director issues the funds to
the respective division as per their requirements, keeping in view the budgetary
limits. #######Hierarchy of Finance DepartmentIn order to enhance the efficiency of
Finance Department, it is subdivided into different sections.Banking SectionIO T,
Receivables/Payables SectionCompilation SectionBudget SectionAsset Section
Establishment SectionPension SectionPre-Audit SectionBANKING SECTIO N:This section
deal with the different Banks & Post O ffices which are authorized banks of the
company under the area covered by the company. This section monitors the
collections of Electricity Bills, Security Deposits, RCO fees, and other receipt as
well as remittance of the collection in to Main Branches of the Company at Multan
and reconcile it with the statements (CP-48) provided by the Revenue O ffices.If any
bank fails to remit the company�s fund in time, ask for such omission and charge
interest for late remittance of company�s fund. This profit is called Penal Profit.
This section also deals with the reconciliation and related matters with banks.
Moreover, this section releases funds to the different Accounting Units of the
Company. IO T, RECEIVABLES/PAYABLES SECTIO N IO T stands for Inter O ffice
Transaction. This section deals with inter company transaction i.e. the cross
transaction which are incurred between the accounting units of MEPCO . IO T section
controls all these transactions and adjust the claim of one office with the offices
of other regions. CO MPILATIO N SECTIO N: 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 Trial Balances received from
different divisions are posted in main 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 section prepare
the profit and loss accounts, balance sheet, cash flow statement and detail of
accounts of different heads.BUDGET SECTIO N:This section deals with preparation of
the budget of each office/division of the company. After approval of the budget
from Chief Executive the funds are allocated to each office in different account
heads according to their budgetary requirement. Each office/division provides its
budgetary estimates for the following financial year. This section also monitors
the variance of budget on quarterly as well as yearly basis and call for
explanation, if the office/division expenditures exceeds the specified budget (in
particular head(s) ) , in order to have a control on unnecessary and unjustified
expenditures. . ASSET SECTIO N:This section is established to deal with all the
movable and immovable assets of the company. The concerned Divisions annually
submit the Assets Sheets. Company charges depreciation on its asset by using the
following rates.Buildings#@ 2 %##O ffice Equipment#@ 10 %##Distribution Equipment
#@ 3.5 %##O ther plant and equipment #@ 10 %##Vehicles#@ 10 %##ACCO UNTING PO LICY FO R
DEPRECIATIO N: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.establishmentMEPCO is providing the
medical facilities at a large level to its employees for their welfare. It is the
second biggest company who is spending lot of money for its workers health. This
section is also use########{#######