NATIONAL UNIVERSITY OF MODERN LANGUAGES

          MANAGEMENT SCIENCES DEPARTMENT

                             LAHORE CAMPUS
                        

 INTERNSHIP REPORT
                                      
 ON
  
   Sui Northern Gas Pipelines Limited
     

 Submitted To:                  -Ma’am Humaira Hamid 

     
 Submitted By:                   -Fraza Munir
      
Roll No:                              -L-1173

NATIONAL UNIVERSITY OF MODERN LANGUAGES

 FACULTY OF MANAGEMENT SCIENCES
SUPERVISORY NOTE
                  
It is hereby certified that the report has been thoroughly and carefully read and
recommended to the Faculty of Management Sciences for acceptance of Final
Internship Report by Miss Fraza Munir Ahmad, Roll No. L-1173. Session (Sep
2018 to June 2020) in partial fulfillment of the requirements for the degree of
National University of Modern Languages Lahore.

 Humaira Hamid_________                                     _______________________________

Supervisory Name                                                           Supervisory Signature 

_________________________                                      _____________________________
Panel Member Name                                                        Panel Member Signature

_________________________                                       _____________________________
Head of Department                                                          HOD Signature 

Date: _______________________

 DEDICATION

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To Almighty Allah who has created us as the crown of creation and enables us
to learn. I dedicate this report to our parents who always appreciate us in
every step and to our teachers who help us at all stages of study.
                      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, and
countless salutations to upon the Holy Prophet Muhammad (PBUH), the sea of
knowledge who has guided His Ummah to seek knowledge from cradle to grave.  I
am thankful to Syed Faisal Hassan Naqvi, Miss Misbah Munir who did help me
in completing the report. I have a debt of gratitude to all my teachers who taught
me throughout my academic career. 
Today, WHAT I AM? Is due to my parents who gave me moral support & strength
in each moment of life. They did a lot for me. I will dedicate it to my lovely
parents, especially to my father Munir Ahmad.
The preparation of this report was a massive undertaking but the highly competent
and experienced Miss Tabinda Zia provided me with all assistance, information,
advice and suggestions that I needed which contributed importantly to this report. I
will also dedicate it to my teachers for their moral support & enthusiasm. I deem it
our utmost pleasure to avail this opportunity to express grace and keep a sense of
obligation to our MA’AM Humaira Hamid for her valuable guidance, scholarly
criticism, untiring help, compassionate attitude and enlightened supervision during
the making of the report.

 
 

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NATIONAL UNIVERSITY OF MODERN LANGUAGES

LAHORE CAMPUS

3
HEAD OF MANAGEMENT SCIENCES DEPARTMENT
  Letter of Transmittal
 
 
Subject: Internship report
Respected Sir,
It is to present you an internship report which is executed at Sui Northern Gas
Pipelines Limited. As required by the university as a degree requirement for a
Masters in Commerce program.
This report has been prepared in accordance with the guidelines issued by the
department. It is the result of my first professional experience. The report is a
practical application of whatever I have studied as a business graduate of National
University of Modern Languages. In this report, I have covered the introduction of
Sui Northern Gas Pipeline Limited, details of my working and learning in the
organization. I feel that this experience would be of great help in future.
I have put all the efforts to summarize my knowledge and experience in this report
to make it comprehensive and to meet reader’s expectations.

                                                                                                           Yours
Sincerely,
                                                                                                            Fraza Munir.
                                                                                                                                      
                                                    

     EXECUTIVE SUMMARY                      

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To have practical exposure with bookish knowledge is pre-requisites for effective
learning. The purpose for this practice is to see management principles,
organizational politics, and workplace environment and to learn about the
operations of the organization. To accomplish this purpose, I selected the Sui
Northern Gas Pipelines Limited Company and luckily I got a chance to have a six-
week internship at Sui Northern Gas Pipelines Limited, Company (Kashmir Road,
Lahore). The company has a solid foundation.  It is the first and largest gas
supplier company of Pakistan. The Company is headquartered in Gas House - 21-
Kashmir Road Lahore, Pakistan. It serves in Punjab Khyber Pakhtunkhwa Azad
Kashmir and Islamabad. My area of internship relates to the Finance department.
This report contains an introduction of the company, finance department various
sections include cost section, store section, asset section, distribution and
development program section, inventory section, organizational profile of the
company. This report also includes information regarding the performance of the
company through SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis.
It also includes all details about operations of Sui Northern Gas Pipelines Limited.
The company provides better quality of services in our country with profitability
and responsibility and to be the best place to work.

TABLE OF CONTENTS

SUPERVISORY NOTE 1
DEDICATION 2

5
ACKNOWLEDGEMENT 2
INTERNSHIP CERTIFICATE 3
LETTER OF TRANSMITTAL 4
EXECUTIVE SUMMARY 5
TABLE OF CONTENTS 6-11
CHAPTER1. Corporate Introduction 12

1.1 Overview of Organization 12

1.2 Nature Of Organization 13

1.3 Natural Gas 14

1.4 Establishment of OGRA 15

1.5 Vision Statement 16

1.6 Mission Statement 16-17

1.7 Objectives 17

1.8 Core Values 17

1.8.1 Commitment 17

1.8.2 Courtesy 17

1.8.3 Competence  18

1.8.4 Responsibility 18

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1.8.5 Integrity 18

1.9 HSE Policy   18

1.10 Company Regulations 19- 21

1.11 Management 21-22

1.11.1 SR. GENERAL MANAGERS 22-23

1.12 Projects 24

1.12.1. Construction Activities in Progress 24

1.12.2 Contract Projects 25-26

1.12.3 Future Projects 26

1.12.4 Recently completed projects 27

1.12.5 Upcoming construction Activities 28

1.12.6 Future Prospects 28-30

1.13 Third Party Access Arrangement 30

1.13.1Transmission Capacities 31-33

1.13.2 Distribution Capacities 34

1.13.3 MOU for Shippers 35-40

1.14 Company Offices 41

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1.15 Total Working Departments Of The Company 41-42

1.16 Services 42-43

1.17 Market Position Of SNGPL 43

1.18 Associated Companies     44

1.19 List Of Employees Near Retirement 44

CHAPTER 02.   Customers 44

2.1 Industrial Consumers 44

2.2 Domestic/Commercial/RLNG Consumers 44

2.3 Online Domestic Application 44

2.4 National Gas Allocation and Management Policy 45

2.4.1 Management schedule 45

2.5 New Gas Connection 45-47

2.6 Types of Bill 48

2.6.1 Normal Bill 48

2.6.2 Estimated (Provisional) Bill 48-49

 2.6.3 Minimum Bill 49

 2.6.4 Sticky / Stopped Meter Bill 49

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2.7 Consumer Gas Prices  49-50

2.8 Bill Payment Options 51

2.8.1 Payment Locations 51

2.9 Advance Payment Plan 52-53

2.10 Consumer Services 53

CHAPTER03. Media Centre 54

3.1 Awards and Certificates 54-

55

3.2 Monthly Newsletter 55

3.3 Corporate Social Responsibility 55-60

3.3.1 Independent Assurance 60

3.4 SNGTI Organogram 60

3.5 OGRA Complaint Resolution Procedure 61

3.6 Professional Memberships 62

CHAPTER 04.  Governance 62

4.1 Board of Directors 62-63

4.2 Organizational Structure 64

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CHAPTER 05. Finance Department 65

5.1 What Is Finance? 65

5.1.2 Finance Department Objectives 65

5.2 Finance Sections 66

5.2.1 Cost Section 66

5.2.2 Store Section 66

5.2.3 Asset/ Corporate Planning Section 66

5.2.4 Distribution Development Program(DPD) Section 67

5.2.5 Inventory Section 67

CHAPTER06 Personal Experience 67

6.1 1st Week in Internship      67-68

6.2 2nd Week in Internship 69-

71

 6.3 3rd Week in Internship 71-72

6.4 4th Week in Internship 72-76

6.5 5th Week in Internship 77-79

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6.6 6th Week of Internship 79-
80

CHAPTER 07 SWOT Analysis 80

7.1 Strengths 80-82

7.2 Weaknesses 82-

83

7.3 Opportunities 83-84

7.4 Threats 84-85

CHAPTER08 Recommendations And Conclusion 85-87

               

 
 

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CHAPTER01
CORPORATE INTRODUCTION
1.1 Overview of Organization:
Sui Northern Gas Pipelines Limited (SNGPL) was incorporated as a private
limited Company in 1963 and converted into a public limited company in
January 1964 under the Companies Act 1913 of British, now The
Companies Act 2017 of Pakistan, and is listed on the Pakistan Stock
Exchange.
The Company took over the existing Sui-Multan System with 217 miles
(349 km) of 16 inches (410 mm) and 80 miles (130 km) of 10 inches (250
mm) diameter pipelines from Pakistan industrial Development Corporation
(PIDC) and Dhulian-Rawalpindi-Wah system with 82 miles (132 km) of 6
inches (150 mm) diameter pipeline from Attock Oil Company Limited. The
Company's commercial operations commenced by selling an average of

12
1.3 million cubic meters (47 million cubic feet) per day gas in two regions
viz. Multan and Rawalpindi, serving a total number of 67 consumers.
SNGPL transmission system extends from Sui in Balochistan to Peshawar
in Khyber Pakhtunkhwa (KPK) comprising over 7,756 km of Transmission
System (Main lines & Loop lines). The distribution activities covering 3,250
main towns along with adjoining villages in Punjab & Khyber Pakhtunkhwa
are organized through 15 regional offices. Distribution system consists of
94,263 km of pipeline. SNGPL has over 5.3 million consumers comprising
Commercial, Domestic, General Industry, Fertilizer Power & Cement
Sectors.
1.2 Nature Of Organization:
Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas
company serving more than 6.5 million consumers in North Central
Pakistan through an extensive network in Punjab, Khyber Pakhtunkhwa
and Azad Jammu & Kashmir and is certified against ISO 14001:2004 &
OHSAS 18001:2007 Standards. SNGPL’s 11 sites have been registered
under the "SMART2" Program by Pakistan Environmental Protection
Agency (PAK-EPA). The Company has over 50 years of experience in
operation and maintenance of high-pressure gas transmission and
distribution systems. It has also expanded its activities as Engineering,
Procurement and Construction (EPC) Contractor to undertake the planning,
designing and construction of pipelines, both for itself and other
organizations.
1.3 Natural Gas: 

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Natural gas, as the name implies, is found in gaseous form naturally,
underground at varying depths and geographical formations. It is one of the
most abundant energy sources in Pakistan, and because it is produced
domestically, it is not subject to foreign disruptions of price or supply.
Composed primarily of methane, natural gas is odorless and colorless
when it comes out of the ground. After impurities are removed, the natural
gas is introduced into the pipeline system where it is transported to the
consumers.
Prior to distribution, a harmless odorant is added to the gas so any leakage
can be easily detected before an unsafe situation occurs. In addition to this
"rotten egg" odor, natural gas has some built-in safety features. It is lighter
than air, so it will rise and dissipate into the atmosphere in the event of a
leak. And it has a very narrow combustion range, igniting only when mixed
with air at a ratio of between 4 and 14 percent. Any mixture higher or lower
than that range and natural gas simply won't burn. It also requires a very
high degree of heat, at least 1200 degrees Fahrenheit, before it will ignite.
Once combustion occurs, natural gas is one of the cleanest-burning fuels
available today. When it is burned properly, the only e missions are carbon
dioxide (which is what we exhale when we breathe) and water vapor.
Because of its clean-burning properties, natural gas has become the
environmental fuel of choice for many residential, commercial and industrial
applications. Such applications include: space heating, water heating,
cooking, and as a fuel for fireplaces, vehicles, power plants, commercial
and industrial boilers, as well as commercial and industrial processing.
 1.4 Establishment of OGRA:

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   The federal government promulgated the natural gas
regulatory authority in January 2000 based on the bill already passed by the
national assembly in 1999. Under the ordinance, a natural gas regulatory authority
ordinance was established to regulate the transmission, distribution and sales of
natural gas, including determination of gas tariffs of the companies with the prime
objective of safeguarding the consumer’s interest. Later federal government
decided to enlarge the scope of natural gas authority and consequently the oil &
gas regulatory authority ordinance was promulgated in March, 2002 which
included the technical regulations of refineries, oil storages, oil pipelines, oil
marketing campaigns, compressed natural gas and liquefied petroleum gas and
natural gas regulatory authority ordinance was subsumed in oil & gas regulatory
authority. Consequent upon oil and gas regulatory authority was established on
28th March, 2002 and with effect from March 15, 2003 federal government
assigned to oil and gas regulatory authority for the regulation of liquefied
petroleum gas and compressed natural gas sectors in the country and has
designated the oil and gas regulatory authority as an authority in place of the
director general (gas) of the ministry of petroleum and natural resources.
Ten main gas companies are working in Pakistan under the oil and gas regulatory
authority:
1. Sui Northern Gas Pipelines Limited.
2. Sui Southern Gas Company Limited.

15
3. Oil and Gas Development Company Limited (Uch Gas Field).
4. Oil and Gas Development Company Limited (Bhal Syedan Field).
5. Oil and Gas Development Company Limited (Nandpur and panjpeer Fields).
6. Central Power Generation Company Limited.
7. Engro Chemical Pakistan limited.
8. Fauji Fertilizer Company Limited.
9. Pakistan Petroleum Limited.
10. Meri Gas Company Limited.

1.5 Vision Statement:

To be the leading integrated natural gas provider in the region seeking to
improve the quality of life of our customers and achieve maximum benefit
for our stakeholders by providing an uninterrupted and environment friendly
energy resource.
1.6 Mission Statement:
A commitment to deliver natural gas to all door steps in our chosen areas
through continuous expansion of our network, by optimally employing
technological, human and organizational resources, best practices and high
ethical standards.
1.7 Objectives:
1. Enhancement of system capacity.
2.Expansion of transmission and distribution network.
3. Increase in gas sales.
4. Rehabilitation of transmission and distribution network.
5. Reduction in unaccounted for gas losses.

16
6. Improvement in profitability.
7. improvement in consumer service.
8. Adoption of information and technology.
9. Human Resource development.
10. Pursue pipelines construction and Advisory Business.
1.8 Core Values:
1.8.1 Commitment:
We are committed to our vision, mission, and to creating and delivering
stakeholder value.
1.8.2 Courtesy:
We are courteous - with our customers, stakeholders and towards each other and
encourage open communication.
1.8.3 Competence: 
We are competent and strive to continuously develop and improve our skills and
business practices.
1.8.4 Responsibility:
We are responsible as individuals and as teams - for our work and our actions. We
welcome scrutiny, and we hold ourselves accountable.
1.8.5 Integrity:
We have integrity - as individuals and as teams - our decisions are characterized by
honesty and fairness.

17
1.9 HSE Policy:                  
Sui Northern Gas Pipelines Limited will ensure that:

● The health of its employees, its consumers and its contractors is protected.
● All its activities are carried out safely.
● Environmental performance meets legislative requirements.
● There is continuous improvement in HSE performance.

To implement HSE Policy, Sui Northern Gas Pipelines Limited will:

● Comply with relevant laws and regulations.

● Ensure that required Health, Safety and Environment Organization,
Standards and Procedures are developed and established.
● Ensure that all its activities are carried out in accordance with relevant
international Standards and Company's Health, Safety and Environment
Standards and Procedures.
● Set demanding targets and measure progress to ensure continuous
improvement in Health, Safety and Environmental performance.
● Require every employee to exercise personal responsibility in preventing
harm to themselves, to others and to the environment.

18
 ● Provide appropriate Health, Safety and Environment training / information
to all employees, contractors and consumers.
● Ensure provision of a safe working environment in order to protect the
employees from occupational illness and accidents.
● Promote awareness and give due recognition to performance in the area of
Health, Safety and Environment.

1.10 Company Regulations:

   Regulatory Regime comprises of:

● The Companies Act 2017.
● Such other Rules and Regulations which the Securities and Exchange
Commission of Pakistan (SECP) may prescribe.
● Listing Regulations of Pakistan Stock Exchange Limited.
● Public Sector Companies (Corporate Governance) Rules, 2013 & Listed
Companies Corporate Governance Regulations, 2017.
Public Sector Companies (Appointment of Chief Executive) Guidelines, 2015:
● Oil & Gas Regulatory Authority Ordinance (XVII of 2002) dated 28th March
2002.
● Natural Gas Regulatory Authority (Licensing) Rules 2002 dated 26th February
2002.
● Natural Gas Tariff Rules 2002 (Draft – 5 July 2002).
● Such other Rules and Regulations which the Oil & Gas Regulatory Authority
(OGRA) may prescribe.
● Public Procurement Regulatory Authority (PPRA) Ordinance, 2002.

19
Under the existing pricing and regulatory regimes, following operating                   
conditions have been laid down:
● Allocation of gas from different sources is made by the GOP while the wellhead
prices are fixed by the OGRA per Petroleum Concession Agreements/contracts.
● Consumer selling prices including sales to major consumers (i.e. power,
fertilizers etc.) are notified by the GOP/OGRA.
● SNGPL is guaranteed a rate of return @ 17.5% on its net fixed assets in
operation (ROA) for meeting financial charges, taxation and a reasonable return
to the shareholders.
● The prescribed price i.e. the price which the company is allowed to retain out of
consumers selling price to meet the covenanted rate of return, is determined by
OGRA.

                                                                              Regulations:

                                                                 Pakistan Stock Exchange.

                                                                 Central Depositories Act 1997.

     Updated:14-03-2019.

1.11 Management:

Amer Tufail
Chief Executive/Managing Director
 Updated: 04-10-2019
 
SOHAIL M. GULZAR

20
Dy. Managing Director (Operations)
 
Departments under the control of Deputy Managing Director (Operations) are as
follows:
● Projects (Field construction, Maintenance Workshop, Coating Plant and
Lands Department)
● Transmission, Compression and Telecom
● Distribution, UFG Control, Customer Services
● Engineering Services (Planning & Development, LNG/LPG, Corrosion
Control, Quality Assurance, Central Metering Workshop)

Through close coordination with all the technical departments are going a
paradigm shift leading to technological innovations in the field of UFG,
Measurement, Geographical Information System (GIS), and upgradation of
systems. Managing Operations & Maintenance of the company's large
Transmission & Distribution network in achieving the profitability goals of the
company.
Comprehensive planning for adequate gas supply to our valued customers through
the company's existing pipeline infrastructure, where this is technically and
economically not feasible, subsequently designed to install LPG Air Mix Plants at
such remote locations.
 
Updated: 18-07-2019
 

1.11.1 SR. GENERAL MANAGERS:

FAISAL IQBAL

21
(CFO)
 
AZAM KHAN WAZIR
(HR)
 
SYED JAWAD NASEEM
(Business Development)
 
SIBGHATULLAH SURI
(Projects)
 
EJAZ AHMAD CHAUDHRY 
Distribution (North/South)
 

 
 

WASEEM AHMAD
(Central Shared Support)
 
 

M KHALID AFTAB
(Transmission)
 
ASIF AKBAR KHAN
(Engineering Services)                                     Updated:02-03-2020. 

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1.12 Projects: 
1.12.1. Construction Activities in Progress: 
In an effort to fulfill its mission of delivering natural gas to every door step,
SNGPL's project crews are working at multiple fronts laying transmission
and distribution pipelines for different regions of Punjab and Khyber
Pakhtunkhwa (KPK). A snapshot of ongoing construction projects including
both transmission as well as distribution pipelines follows:

● Work is well underway on a 12" dia x 25 Km transmission pipeline

from Shahwali to Rojhan. This pipeline is intended to deliver a clean,
continuous and environmentally friendly source of energy for the
people of Rojhan and in turn save the already scarce trees from
being used as firewood.
● Works on an 8 '' dia x 13 Km transmission pipeline aimed at
supplying gas to the major towns of Malakand Agency like Sangoota,
Charbagh and Mangalore are at the final stages of construction with
the pipeline being successfully tested. Process of installation of valve
assemblies is in progress.
● To supply gas to various villages of NA 138, Kasur, an 8" dia x 7 Km
transmission pipeline project running smoothly and is expected to be
completed well within the stipulated time period.
● SNGPL is planning to loop its existing 24" Dia Sawan - Qadirpur
segment with a 42" Dia x 21.45 Km loopline at the valve assemblies
SV4 and SV5 to cater for future increased gas flows. The project is

23
 the first of its kind as it is the first time, as a 42" dia pipeline will be
added in SNGPL's network.                                

                                                                                          

1.12.2 Contract Projects: 

1. Manzalai Field Development Project: 
SNGPL has recently completed a 12” dia x 20 KM Maramzai flow line and 8” dia
x 14.7 KM Mamikhel-1 flow line for MOL. With the completion / commissioning
of this gas gathering network additional 65 MMCFD has been added to our system.
Formerly the 52 KM long network in assorted diameters 8” to 18” at Manzalai
field was laid in January 2010 which facilitated an additional intake of 210
MMCFD gas into our system. Recently Manzalai-8 flow line of diameter 8” x 6
KM long has also been completed bringing in an additional supply of 20
MMSCFD to our system. MOL has also awarded the 12” dia x 16 KM pipeline
construction work to SNGPL for their new finds at Makori-East where work has
already been started by SNGPL which is likely to bring in 20 MMSCFD gas to our
system. Moreover, MOL has shown their strong desire to award the pipeline
construction work to SNGPL for their new exploration at Tolanj. On the
completion of all wells approximately 300-350 MMCFD will be available to the
company.
2. Reti & Maru Field Development Project:
SNGPL has been awarded a job at Reti & Maru field by OGDCL which involves
construction of an 18 Km gathering system of assorted diameters ranging from 4-8
inches. This project carries national importance as the country is already facing an
energy crisis. Work on this project has been started which is likely to be completed

24
 within four to six months. By the completion of this project 12-14 MMCFD gas
would be available for use. 
3. Mari Deep Project:
SNGPL has also recently been awarded a 12” / 10” dia x 10 KM pipeline
construction project from Mari deep well to GENCO –II dehydration plant. The
completion of this project would facilitate the supply of 44 MMCFD gas to Guddu
power station. This project is likely to start in the coming few weeks.
                                                                                        
1.12.3 Future Projects:
1.Development of Pipeline Infrastructure for LNG, Iran Gas
and Anticipated Indigenous Gas Supplies
The Finance Committee of the Board of Directors of the Company has
conceptually approved Project-10 comprising of laying of 1,294 kilometers length
of high pressure transmission pipelines from 16" to 42" diameter inclusive of
61,800 compression horsepower, for transportation of upcoming LNG, Iran Gas
and anticipated indigenous gas supplies in SNGPL's pipeline network. The project
is envisaged in order to absorb additional gas supplies in future from following
sources.

1.12.4 Recently completed projects:

SNGPL commissioned 203 km transmission pipelines (including 52 km for M/s MOL
on contract) and 5446 km distribution lines in FY 2010-11. Thus gas facility was

25
extended to various localities/towns and industrial units across Punjab and Khyber
Pakhtunkhwa. Highlights of Projects completed include as under: -

● The 12 inch dia x 47 km Mandi Bahauddin transmission pipeline was

commissioned to improve gas pressure in SNGPL's network from Lala-Musa
towards Jhelum.
● The completion of Qadirpur compression project is yet another milestone which
was achieved by SNGPL. This project enhanced the overall capacity of the
Qadirpur gas field by 100 MMCFD. SNGPL takes pride in completing it on time
in the face of challenging constraints and tight schedule.
● SNGPL completed various flowlines as a contractor for MOL Pakistan including
12 inch dia x 19.7 km Maramzai Flow line, 8 inch dia x 14.7 km Mamikhel-1
flow line, 8 inch dia x 10.1 km AV1-AV2 Trunk line and 8 inch dia x 5.40 km
M8-VA1 flow line. The completion and commissioning of this gas gathering
network helped secure additional 85 Million Cubic Feet Per Day (MMCFD) to
SNGPL's transmission system.

 1.12.5 Upcoming construction Activities:

26
1.12.6 Future Prospects:
Currently, laying of transmission pipelines and distribution lines under Annual
Distribution Development Program for various localities/villages across Punjab
and Khyber Pakhtunkhwa is being carried out. Highlights of the construction
activities in progress include:

● Construction licenses have been issued to three parties for installation of

LNG Floating Storage and Regasification Units (FSRU) for import of LNG
to meet the prevailing shortfall in gas supply. In accordance with third party
access rules, SNGPL / SSGC's system would be open to these licenses for
transportation of their RLNG on payment of transportation tariff. In line
with the directives of MP&NR, SNGPL is planning to enhance the pipeline
system capacity for upcoming LNG timelines.
● SNGPL is also pursuing to undertake supply of Synthetic Natural Gas (LPG-
Air Mix) as replacement of natural gas to help ease the prevailing energy
crisis in the country. Company is also working to bottle and market LPG
cylinders to prospective areas given the rising demand for energy. Different

27
 options including establishing a new LPG facility, hospitality arrangement
with a third party and acquiring the LPG facility are under consideration to
set modus operandi for entering into the business.
● Spade work on Iran Pakistan (IP) Gas Pipeline project is underway and it is
hoped that SNGPL would be able to get additional gas supply of 500
MMSCFD in the years ahead.
● The Company is engaged in various pipeline construction projects of
national and multinational companies. The relations with these companies
have remained exemplary especially with M/s MOL Pakistan who after their
first working interaction with SNGPL at Manzalai gas gathering system
awarded the company with jobs of Mamikhel-1 flow line, Maramzai-1 flow
line, Makori Feed line, Manzalai-8 flow line and recently Makori East flow
line. Besides this, MOL Pakistan has further desired to enter into a five-year
contractual relationship with SNGPL and has suggested to sign blanket
service order in this respect. Their future projects include Tolanj-1, Mami
Khel-2, Manzalai-9, Maramzai-2, Manzalai-10, Manazalai-11, Mardankheil-
1, Manzalai-12, Mardani Khel-south etc. Lately, MOL Pakistan plans to
initiate the working on Manzalai-9 flow line for which they have requested
us to conduct preliminary survey work and prepare cost estimates. In this
respect, SNGPL is quite hopeful of getting this job as well.
● SNGPL has also got an excellent working relationship with OGDCL who
had awarded the Qadirpur compression project to SNGPL last year which
involved the installation of 14 Nos. compressor packages including civil
works, 22,000 inches-dia pigging work and electrical & instrument work.
SNGPL completed this project in minimum record time facilitating the

28
 injection of additional gas supply to SNGPL. Recently, OGDCL has
awarded another pipeline project at its Reti & Maru gas field involving
construction of 18 KM gathering mains of diameter 4"/6"/8" on which the
work has been started.

1.13 Third Party Access Arrangement:

 
1.13.1Transmission Capacities
● Entry Points - Transmission System.
● Exit Points - Transmission System.

 
1.13.2 Distribution Capacities
● Entry And Exit Point Capacities.

 
1.13.3 MOU for Shippers

● Model MOU.
● Proforma For Capacity Allocation Application.

Note: 
Applications to be electronically submitted at tpa.applications@sngpl.com.pk.
Hard copy of the application along with all requisite documents must reach
SNGPL Head Office within 02 days of submission of electronic application. Please

29
note that applications submitted will be evaluated on a "first come first serve"
basis.
Updated: 26-07-2020
 
 

Entry Points-Transmission system:

The description shows different entering points in description form for the
transmission purpose and other gas specifications details too as given below:

30
 
 
 

Exit point Transmission System:

31
32
DISTRIBUTION CAPACITIES: Entry And Exit point capacities:

33
MOU for Shippers
Model MOU:

34
35
36
      
      
                 

37
38
 
 
 
 

39
Performa for Capacity Allocation Application:
 

1.14 Company Offices:

● Abbottabad.
●  Lahore.

40
 ● Multan.
● Islamabad.
● Faisalabad.
● Peshawar.
● Gujranwala.
● Bahawalpur.
● Sahiwal.
● Sheikhupura
● Rawalpindi.
● Gujrat.
● Sargodha.
● Sialkot.
● Mardan.

1.15 Total Working Departments Of The Company:

Central Shared Support. Engineering services.

Compliance. Business Development.
Compression. Corporate Affairs.
Finance. Corrosion Control.
Distribution (South) Distribution (North)
Health, Safety and Environment. Planning and Development.
IT/ MIS. Human Resource.
Internal Audit. Administration.
Projects. LPG/LNG.

41
 Risk management. Quality Assurance.
Sales. Stores.
Telecommunication. Transmission.
           

1.16 Services:
As an EPC contractor, we offer services in the following areas:

● Construction of Transmission & Distribution Pipeline Networks.

● Compressor Station Design / Planning & Installation.
● Route / Site Feasibility Studies.
● Project Planning & Permissions.
● Preliminary Cost & Design Estimates.
● Surveying.
● Mapping.
● Right of Way Acquisition.
● Engineering & Design, Network Planning.
● Station Automation & Control, SCADA.
● Construction of Gas Pressure Reduction & Custody Transfer Meter Stations.
● CAD / G.I.S.
● Pipeline / Facility Design.
● Pipeline Coating.
● Construction Management.
● Pipeline Integrity Management.
● Corrosion Control Systems.
● High Definition Surveying.

42
 ● Code Compliance Review.

1.17 Market Position Of SNGPL:

1.18 Associated Companies:

[As per Companies Act, 2017 Section 2(4)]
Associated Companies and their websites addresses:

● Sui Southern Gas Company Limited(www.ssgc.com.pk)

● National Investment Trust Limited(www.nit.com.pk/)
     
Updated: 27-02-2019.
 

 1.19 List Of Employees Near Retirement:

● Executive Staff Retiring From Jan 2020 - Dec 2020.
● Subordinate Staff Retiring From Jan 2020 - Dec 2020.

43
Updated: 01-01-2020.
 

Chapter 02
                                  CUSTOMERS
2.1 Industrial Consumers:
In order to view current bill and/or billing history, industrial consumers must
register.
2.2 Domestic/Commercial/RLNG Consumers:
Domestic, Commercial and RLNG Consumers Can View their bill in a Single step
by giving their Consumer No. (printed on the bill).
2.3 Online Domestic Application:
SNGPL has introduced a facility for the applicants to submit their applications for
new domestic gas connection through our web-site on the following link
www.sngpl.com.pk/onlineapp
Now, you are not required to visit the office for submission of your application for
a domestic gas connection. Just click on the above link, fill in the requisite
particulars and send your application on-line. After scrutiny of your particulars,
acknowledgment receipt may be issued and made available on the same link.
Note: For submission of application for gas connection, your premises must fall
on our existing gas distribution network and all particulars must be complete and
correct. In case of any information being incomplete or contrary to facts, your
application may be rejected/ cancelled at any time.
2.4 National Gas Allocation and Management Policy:
2.4.1 Management schedule:

44
 ● Curtailment schedule: In view of improvement in weather, RLNG will
continue to be provided to the CNG sector in Punjab & Islamabad.
● Updated: 16-02-2020.

2.5 New Gas Connection:

45
46
 2.6 Types of Bill:
2.6.1 Normal Bill:
Bill is issued as per actual meter reading recorded by the meter installed and
calculated as per rates notified by Oil and Gas Regulatory Authority (OGRA) for all
categories of consumers. In general, pressure factor is applied for the calculation of
corrected volume of gas consumed for commercial consumers, while pressure,
temperature and super compressibility factors are applied to work out corrected
volume of gas consumed by Industrial / Bulk supply consumers.

 2.6.2 Estimated (Provisional) Bill:

When actual meter reading could not be recorded due to certain factors, an
Estimated (Provisional) bill is issued to the consumer. Some of the factors are as
follow:

● Index glass dirty/Misty.

● Water inside the meter.
● Meter covered with dust.
● Meter covered with bushes.
● Meter under rain water.
● Meter installed above normal height.
● Meter position not approachable.
● Meter locked inside the premises.
● Premises not found.

Estimated (Provisional) bill is based on the consumption of corresponding period of

preceding year, or immediate preceding bill or trend of the same category of the
locality respectively.

47
Estimated (Provisional) bill is adjusted in the next normal bill when actual meter
reading is available.
  2.6.3 Minimum Bill:
 Minimum bill is issued when consumption is nil/zero or below the prescribed      
consumption limit as per rates notified by Oil and Gas Regulatory Authority (OGRA)
for all categories of consumers.
  2.6.4 Sticky / Stopped Meter Bill:

Sticky / Stopped Meter Bill is issued if the meter is sticky / stops (out of order) and
is unable to record the gas passing through it. The bill is based on seasonal average
consumption (summer / winter season) in case of domestic category whereas in
case of Industrial and Commercial category, it is based on the previous two
month’s or following two month’s average consumption whichever is higher as per
Gas Sales Agreement.
2.7 Consumer Gas Prices:
The given memorandum shows notification for consumer gas prices.
 

48
 
 

49
2.8 Bill Payment Options:
2.8.1 Payment Locations:
To provide hassle-free services, SNGPL has facilitated all valued gas consumers to
make their bill payments round-the-clock through online payment channels like

● Internet
● Mobile Banking
● Mobile Application like Easy paisa, jazz cash, U account etc. as well as
using other channels like
● ATM's
● Nadra Kiosks
● All Scheduled Banks
● GPOs / NPO's

2.9 Advance Payment Plan:

50
Profit at the rate of prevalent Six Month KIBOR - 2% p.a. will be paid on reducing
monthly advance balance.

● Easy to enroll.
● Saves 11 visits to the bank in one year.
● Saves tension associated with keeping track of the bill to ensure timely
payment.
● Risk of occasional delays and levy of late payment surcharge is eliminated.

Procedure:

● You may forward your request on the form (given below) to your Regional
Billing office.
● We send you a bill for advance payment as per your option based on your
last one year’s consumption plus 20%.
● For every completed month after advance payment, discount @ 6 months
KIBOR -2% per annum on reducing monthly advance balance will be
credited to your account.
● You will continue to receive your monthly gas bill giving all information as
usual including current months billing, advance balance, discount credit
balance.
● After your credit is exhausted, you may repeat the procedure, otherwise
normal monthly billing will continue.

 
2.10 Consumer Services:

● Introduction of uniform Phone No.1199 for registration of complaints.

51
 ● Upgrading the skills of emergency attending teams with proper training,
courtesy and prompt attention to consumer's complaints.
● Repayment scheme for cost jobs.
● Phone banking.
● Payment in SNGPL’s offices.
● Payment in Post offices.
● Rounding of gas bills.
● Increase in Bank branches.
● Online Gas Complaints.
● Dropbox scheme.
● E - Commerce banking facilities.
● Advance payment plan offering attractive discount.
● Availability of gas bills on the internet.
● 42 consumer service centers established to provide facilities like billing,
operation and sales.

CHAPTER 03
MEDIA CENTER
3.1 Awards and Certificates:

● Fire Safety Awards-2011 Jointly by: National Forum for Environment &
Health and Fire Protection Association of Pakistan.
● 4th Best Corporate Report Award-2010 Jointly by: ICAP & ICMAP.

52
 ● 7th Annual Excellence Award-2010 By: M/s National Forum for
Environment & Health (NFEH).
● 5th CSR National Excellence Award-2010 By: M/s Help International
Welfare Trust (HIWT).
● 2nd National Conference on "Fuel & Environment" By: University of
Peshawar.
● "SMART" Registration by: Pakistan Environmental Protection Agency
(PAK-EPA) under SMART / GIP Program for Environmental Reporting.
● Participation in HSE Conference for Oil, Gas and Energy Industry
arranged by Delta Consultants.
● Shortlisted among 60 Companies / Organizations for ACCA-WWF Award
2010 in Dec 2010.
● 2nd Fire and Safety Award By: National Forum for Environment & Health
and Fire Protection Association of Pakistan.
● 6th CSR National Excellence Award By: M/s Help International Welfare
Trust (HIWT).
● 5th Best Corporate Report Award-2011 Jointly by: ICAP & ICMAP.
● 9th Annual Environment Excellence Award 2012 By: National Forum
For Environment & Health and Fire Protection Association of Pakistan.

3.2 Monthly Newsletter:

The Pride is a SNGPL monthly newsletter.
 3.3 Corporate Social Responsibility:
SNGPL being a national Company is committed to honor its policy on Corporate
Social Responsibility. This policy is based on global best practices envisaging

53
management of the business processes by producing an overall positive impact on
society and the environment. The laid out objectives are to be achieved by
adopting a methodology that drives the conduct of the Company’s business leading
to commercial success in ways and manner that honor ethical values, people and
communities
SNGPL believes in business that should be both profitable and beneficial to the
society improving the quality of life of the communities especially those who are
under privileged ensuring harmonious relations with our stakeholders, by working
in partnership with the Community, the Government and NGOs through the
principles of Sustainable Development.

● Principles of Corporate Social Responsibility (CSR) Policy

● Focus Areas
● Corporate Governance

We pledge to perform our corporate duty, based on following acknowledged

principles with dedication, diligence and integrity.
a) Standard of business conduct:
We are committed to ensure that all our corporate activities are conducted strictly
in accordance with high levels of professional and legal standards as per code of
business ethics
b) Health, Safety & Environment:
We are committed to provide and strive to maintain a clean, healthy & safe
working environment by continually conducting public awareness campaigns to
promote safe use of natural gas.
c) Community:

54
We are committed to being a responsible corporate citizen by pro-actively
supporting the affected communities in the events of national and natural
catastrophe.
We shall also support national causes pertaining to

● Education
● Environment
● Safeguarding national heritage
● Safeguarding & public welfare support
● cultural activities

d) Disclosure:
SNGPL shall provide information about descriptive as well as monetary
disclosures of the CSR activities undertaken in each financial year on its website,
annual reports and other communication media. The disclosure shall be made in
the Director’s report to the shareholders annexed to the annual audited accounts.
The disclosure shall include but shall not be limited to the following:

● Education
● Environment protection measures
● Safeguarding national heritage
● Culture activities
● Corporate philanthropy
● Energy conservation
● Community investment and welfare schemes
● Consumer protection measures
● Welfare spending for under privileged classes

55
 ● Industrial relations
● Employment of special persons
● Occupational safety and health
● National-cause donations
● Business ethics and anti- corruption measures
● Contribution to national exchequer
● Rural development programs

We will strive to Contribute due share in fulfillment of basic human needs of the
deprived and underprivileged by focusing on health care, sport, sanitation and
environment etc. Contribute due share in fulfillment of basic human needs of the
deprived and underprivileged by focusing on health care, sport, sanitation and
environment etc. Provide assistance for the Promotion of education in Pakistan.
Build self-reliance through programs aimed at Skill Enhancement and creating
income generating opportunities for the underprivileged. Conserve National
Heritage, indigenous culture and sports. Implementing sound Environment, Health
& Safety Management Systems and take a proactive approach to address
environmental issues like tree plantations, awareness campaigns etc. Provide
unbiased donations. Support and uphold the principles contained in the Universal
Declaration of Human Rights and the International Labor Organization's
fundamental conventions on core labor standards. Provide medical and community
aid to alleviate hardship and distress to underprivileged.
We will ensure that effective systems are in place to manage and monitor
compliance with this policy and take remedial action whenever we fall short of our
commitment. A CSR Committee having the following composition will review and

56
approve strategic plans, assess progress and offer guidance about emerging CSR
issues of importance.

i Deputy Managing Director Chairman

ii Senior General Manager (CA&CC)/CS Member

ii Chief Financial Officer Member

i

iv General Manager (Admin) Member

v Chief Engineer (HSE) Member/Secretary

 
CSR Committee will periodically evaluate and approve the projects recommended
by the regional CSR cells headed by each Regional In-charge duly assisted by his
team. The CSR Committee will ensure:

● Those projects are within the area of SNGPL’s operation. However, being a
national Company, SNGPL may extend its support regardless of
geographical locations for special projects of national importance.
● That SNGPL cooperates with and/or associates with NGOs and Community
Based Organizations (CBOs) working in a financially transparent manner

57
 i.e. maintaining properly audited accounts and operations on non-profit basis
and having credibility and reputation in the public sector.
● That priority is given to under-privileged areas and segments of society,
institutions and projects which generally do not have easy access to other
sources of funds.
● That NGOs/CBOs and institutions having political / ethnic affiliation are not
supported.
● That special funds are approved from the Board of Directors each year for
implementation of the CSR policy.

 3.3.1 Independent Assurance:

SNGPL shall ensure to make arrangements for obtaining independent third party
assurance for verification of its CSR activities. Certification may also be obtained
in this regard.
3.4 SNGTI Organogram:
It is a training institute for its employees to enhance their abilities, to polish their
skills according to needs.

58
 

3.5 OGRA Complaint Resolution Procedure:

 
 

59
 

3.6 Professional Memberships:

● Member Pakistan Institute of Corporate Governance.

● Listed member of Pakistan Stock Exchange.
● Corporate Member of National Association of Corrosion Engineers, USA.
● Member National Safety Council.

60
CHAPTER 04
                            GOVERNANCE
4.1 Board of Directors:
Mrs. Roohi R. Khan
Chairperson
 
      
Mr. Amer Tufail
Managing Director / CEO

                                   
 
Mr. Afan Aziz
Director
 
Mr. Ahmad Aqeel
Director
 
Mr. Manzoor Ahmed
Director
 

Mr. Mohammad Haroon

Director

Mr. Muhammad Ayub Chaudhry

Director

61
Mr. Naveed Kamran Baloch
Director
 

Mr. Sajid Mehmood Qazi

Director
 

Dr. Sohail R. Khan

Director
 

Syed Akhtar Ali

Director
 
 

6.2 Organizational Structure:

62
  

CHAPTER 05

  FINANCE DEPARTMENT

5.1 What Is Finance?

“The process of managing money, needed funds, assets and their control.”

63
5.1.2 Finance Department Objectives:

● Accurately, Timely, Efficiently, effectively discharge of accounting functions.

● Accurately, Timely, Effectively, efficiently discharge of budgetary controls.
● Compiling to get approval of capital and revenue budgets Maintaining stores,
assets accounting systems, allocating journalizing operating expenses and
variance analysis report of these operating expenses.
● assessing the financial feasibility of new development plans and financial
reporting to government agencies (Ministry Petroleum and Natural Resources,
Ministry of Planning and Development, World bank, Financial institutions etc.
● Utilization of limited resources to get maximum benefits and to avoid mis-
allocation of available resources.
● Budget implementation/preparations for managing future investments and
expenses.
● reallocation of budget in view of any shortage within a certain head of
account.

5.2 Finance Sections:

Finance department has been divided in various sections:
5.2.1 Cost Section: 
Responsible for compilation, preparation, processing, presentation of annual revenue
budget to BOD? OGRA for approvals, publishing and uploading of the same in
Oracle Financials. Preparation of quarterly, semiannual and annual operating cost for
financial reporting.

64
5.2.2 Store Section:
All aspects relating to stores accounting, physical stock check at all locations carried
out by HO staff in collaboration with external auditors.
5.2.3 Asset/ Corporate Planning Section:
Compilation of capital budgets (Regular CAPEX) and preparation of Agendas for
approval of the Board of Directors/OGRA. Processing of Management Sanctions/
Job numbers for Management approval.
assessing feasibility of new development plans and expansion projects; preparation
of long range financial projections; continuously reviewing projections with a view
to keeping them update in respect of any changes in taxation, tariffs and others
factors affecting the company operations so that these projections provide the basis
for determining the company operations capital structure, financing arrangement,
loan negotiation and negotiations for revision of gas sales tariffs; carrying out
various ad hoc studies required from time to time and producing statistics to assist in
preparation of cost estimates.
5.2.4 Distribution Development Program(DPD) Section:

● Compilation of budget proposals for distribution development works for

approval of board of Directors and OGRA;
● Processing of Request for Job numbers and related management approval
notes;
● Periodic/Annual Financial Closing, related to DDP Jobs, after having
“Commissioning Status” of jobs as well as maintenance of record of
completion reports/ material reconciliation.

65
5.2.5 Inventory Section:
Maintenance of computerized assets accounting sy6stem, preparation of depreciation
schedules for financial and tax purposes.

CHAPTER 06
                                 PERSONAL EXPERIENCE
6.1 1st Week Of Internship:
In week one, I learned how the finance department calculates its revenue earnings.
Revenue earnings are firm profit or income. To determine revenue earnings, we
use 17.5% percentage of net asset rate, provided by oil and gas regulatory
authority. Our asset pipeline is multiplied by 17.5% = to get revenue earnings from
that pipeline.
In the inventory section material list is prepared with the matched job number
otherwise error in the attached material list occurs. The materials list should be
arranged with requested job no. Materials job number is different from supply
request job number. 
There is also a job request no for the supply of sui gas. Supply Job number is
assigned to consumers or customers having a specific location. Each supply job is
different from locality to locality and customer to customer.
00/045/000110 is a job number for materials 1 category.
00/045/000111 is a job number for materials 2 category.
00/045/000112 is a job number for materials 3 category.
6” DIA km supply main has been approved for location DHA, Lahore having
supply job number 123/459/35625.

66
5” DIA km supply main has been approved for location ANARKALI, Lahore
requested supply job number is 157/985/56526.
The cost of goods sold statement is made in inventory section with a simple
calculation:
Sales - cost of goods sold = gross profit.
After reporting the memorandum of job numbers to the chief accountant, an
observation memorandum is passed from the side of the chief accountant in which
all aspects of errors are mentioned for correcting all missing points, errors and
attachments then after correction we again give the memorandum to chief
accountant.

6.2 2nd Week Of Internship:

In week two, I learned which documents are essential to attach with memorandum
preparation before forwarding it to the chief accountant. These include:

● Material list as per request for job number.

● Approved copy of management approval.
● Copy of offer letter.
● Name of locality.
● Letter issued by sales department.
● Unit cost calculations.
● Bank statement / deposit confirmation from treasury department.
● Charges recovered from consumers.
● Amount received from customer within the time stipulated as per offer letter.
● Budget Exhausted / budget reference.

67
 I did learn SNGPL Budget- Funds Available Analysis. Each asset or expense for

which the funds are available have a job code, a summary code, expense code if it
is an expense and asset code if it is an asset and a description. Periods for which
the funds will be utilize and the total budget for any asset or expense is always
specified by OGRA (Oil and Gas Regulatory Authority) is used to calculate
variance by keeping in observation the budget for the expense or an asset,
encumbrance on that asset or expense and actual expense incurred of that specified
asset.
Expense code or asset code vary from expense to expense and asset to asset
because in ORACLE software all data runs, processes in the form of codes and job
numbers. Job code is basically assigned to each department separately and each job
has a separate code in the form of 00/01/001310 for JOB CODE.1, 00/01/001311
for JOB CODE.2. All jobs will run in oracle in a sequential form only last values
will change due to different descriptions that have been coded in oracle in the form
of JOB CODE for variance analysis purposes.
All requests of the job code run one by one in ORACLE. Once it’s complete it is

automatically reporting in a file. After completion I observed which JOB is revised

and which one is missed, I checked the difference in assigned budget and the
actual expense incurred, variance and encumbrance.
If we subtract actual value and budgeted value, we get variance. Encumbrance
should be zero because it is considered as an extra cost or burden and sometimes
we have no extra funds to adjust the burden. The whole one category is called a
summary and there is also a code for that summary which we call summary code in
the form of 037. 

68
These codes start from 0. ORACLE also has an option for specific words for each
JOB CODE named as a description already assigned when ORACLE is installed or
designed for each department separately. How it seems:
  

JOB 00/01/001310 SUMMAR 037 PERIOD AUG-20

CODE: Y CODE: :
EXPENSE DESCRIPTIO BUDGET ENCUMBRANC ACTUA VARIANC
CODE N E L E
  588 TELEPHONE 12,000 0 0 12,000
SETS
SUMMAR     0 0 12,000
Y CODE
TOTAL:
JOBCODE   12,000 0 0 12,000
TOTAL:
GRAND   12,000 0 0 12,000
TOTAL:
 

                              

6.3 3rd Week Of Internship:

In week three, I did learn how to make petitions. In petitions, there is explanation
of all expenses incurring in three years like two previous years and one upcoming
year because there is a need of approval upon upcoming year petitions that these
are our expenses of upcoming year and these are our previous two year expenses
along reasons for increase or decrease in budget selected.
Increment and decrement in expenses is shown in percentages and in simple

calculation also.  First of all, from transmission to distribution the list of all costs or
expenses is made. Then, a petition is written about the required upcoming year by

69
knowing all costs, sub costs analysis mostly based on inflation rates, gov.t policies
but sometimes due to other practical needs too. After that we state our previous
two years approved budget. Two make under and over budget analysis, we subtract
the current upcoming year petition with previous current budget. The obtaining
value is called over budget value or under budget value. And at last we calculate
the percentage of increment and decrement along reasons of increment.  
                 
6.4 4th Week Of Internship:
In week four, I learned how to upload a petition in oracle for sending it to the oil
and gas regulatory authority.
 

DESCRIPTION PETITI BUDGE BUDGE (INC/DE % REASON

ON T T FY C IN S 
FY 2019- FY 2017- BUDGE FOR
20 2018- 2018 T) INCREAS
2019 E
SALARIES, - - - - -     -
WAGES(Executives)
salary 4,535.000 3754.00 3,260.26 781.000 -20.80     -
0
Gratuity 222.000 184.000 146.928 38.000 20.65     -
Pension 458.000 379.000 303.029 79.000 20.84     -
Long-service award 19.000 15.000 9.052 4.000 26.67     -
Accommodation 5.000 1.880 4.291 3.120 165.96     -
Insurance 1.590 1.160 0.492 0.430 37.07     -
Tea/coffee 35.000 54.000 19.917 (19.000) -35.19     -
Club membership 28.000 27.000 21.761 1.000 3.70     -
Petrol 20.065 17.640 10.126 2.425 13.75      -
Others welfare 46.112 31.108 25.006 15.004 48.23      -
Staff-related insurance 7.000 7.000 3.331 - 0.00      -
  5,376.767 4,471.78 3,804.19 904.979 20.24      -

70
 8 3
  (130.541) (40.035) 82.912 (90.506) 226.07           -
INCREMENTAL- 5,246.226 4,431.75 3,887.10 814.473 18.38           -
IMPACT 3 5
Medical and Welfare:                      
Medical expenses- 225.450 226.000 181.432 (0.550) -0.24      -
Exe.
Medical expenses- 87.198 85.000 70.404 2.198 2.59       -
Parents
INCREMENTAL 162.075 54.100 115.608 107.976 199.59       -
IMPACT
  474.723 365.100 367.444 109.624 30.03       -
TOTAL- 5,720.949 4,796.85 4,254.54 924.097 19.26       -
EXECUTIVE COST 3 9
Wages,            
allowances(subordina
tes):
Wages 8,351.000 7,894.00 7,900.40 457.000 5.79         -
0 6
Bonus  844.000 653.000 555.044 191.000 29.25         -
Overtime 876.000 852.000 1,267.42 24.000 2.82         -
1
Casual labor 1,529.627 1,355.66 1,112.16 173.962 12.83         -
5 8
Gratuity 284.000 278.000 214.329 6.000 2.16         -
Pension 670.000 656.000 506.879 14.000 2.13         -
Unpaid leaves 132.000 102.000 73.079 30.000 29.41         -
Long service award  2.000 13.690 3.301 (11.690) -85.39         -
Overtime 90.000 100.000 66.240 (10.000) -10.00         -
breakfast/conveyance
Insurance(staff related) 61.000 40.000 24.603 21.000 52.50         -
Sundry welfare staff 27.700 19.000 21.161 8.700 45.79         -
Uniform clothing  7.000 6.000 4.167 1.000 16.67         -
Hajj expense  64.400 25.000 16.255 39,400 157.60         -
Workers children 1.000 1.000 2.924 - 0.00         -
education expenses
Impact of CBA 12,939.72 11,955.3 11,767.9 944.372 7.87         -

71
Agreement FY 2017- 7 55 77
2018
Impact of CBA 1,838.988 - - 1,838.98 -         -
Agreement FY 2018- 8
2019
Impact of CBA 2,361.213 - - 2,361.21 -         -
Agreement FY 2019- 3
2020
INCREMENTAL 2,952.754 - - 2,952.75 -         -
IMPACT 4
  (592.482) 439.641 1,079.50 (1,032.12 -         -
6 3) 234.77
  6,560.473 439.641 1,079.50 6,120.83 1392.2         -
6 3 4
Medical and welfare:                   -
Medical expenses-staff 518.576 526.000 413.428 (7.4324) -141         -
Medical expenses- 163.776 153.000 139.815 10.776 7.04         -
parents
Medical-allowance 5.000 5.000 2.558 - 0.00         -
subordinates
INCREMENTAL 200.980 171.170 324.562 29.811 17.42         -
IMPACT
  888.332 855.170 880.363 33.163 3.88         -
TOTAL 20,388.53 13,290.1 13,727.8 7,098.36 53.41         -
SUBORDINATE 2 65 46 7
COST
STATIONARY,            
TELEGRAM,
POSTAGE
Compression 1.210 1.450 0.998 (0.240) -16.55       -
Transmission 4.834 5.317 4.196 (0.483) -9.08       -
Distribution 32.975 24.825 19.954 8.150 32.83 Increase in
the
inflation
impact due

72
 to the
devaluatio
n of the
PAK
Rupee
against the
US Dollar.
Others(include 222.895 98.326 128.967 124.569 126.69 Increase is
centralized items like due to the
pre-printed gas bills) strengtheni
ng of the
US against
the PAK
Rupee
which is
expected to
increase in
the future.
Increase is
also on
account
increase in
consumers
number.
TOTAL COST 261.914 129.918 154.115 131.996 101.60       -
 

 In reviewing costs and expenses all new government policies, budget of the year,
tax ratios and other economic factors like inflation and deflation, currency
devaluation etc. are important to take in consideration. 

73
                         

6.5 5th Week Of Internship:

 In week five, I learned how to calculate depreciation on assets in the inventory
section by using two depreciation methods only. Different methods are used to
calculate depreciation in the inventory section. These are:
1. Straight-Line Method.
2. Double Declining Balance.
3. Units of Production.
In the third week, I learned Straight–Line Method and Double Declining Balance
Method. These are the simplest methods of calculating how much wear and tear
expenses will incur on its pipeline. 
1. Straight- Line Method:  The expense amount will be the same year to year or
each year depends on the useful life of the pipeline. 
FORMULA: 
Depreciation = (cost of an asset - value of that asset) / useful life. 
For instance, we have a pipeline worth $25,000 with an estimated useful life of
8 years and a $0 value.
Depreciation = ($25000-$0) / 8years = $3,125 per year.

YEARS 0 1 2 3 4 5 6 7 8
Straight-                  

Line
Method

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 Opening-   25,00 21,87 18,75 15,62 12,50 9,37 6,25 3,12
Book 0 5 0 5 0 5 0 5
Value
Depreciati 8 3,125 3,125 3,125 3,125 3,125 3,12 3,12 3,12
on 5 5 5
Ending- 25,00 21,87 18,75 15,62 12,50 9,375 6,25 3,12 0
Book 0 5 0 5 0 0 5
Value
 
2. Double Declining Balance Depreciation Method: This method states that
assets are more useful in their early years because early years’ assets are more
productive as compared to later years.
FORMULA:
Depreciation = Beginning Book Value multiplied by Rate of Depreciation.
APPLICATION:
We have a pipeline cost $25,000 and have estimated a useful life of 8 years and
$25,000 value.
Depreciation = (100% / 8) multiplied by 2 = 25%

YEARS   1 2 3 4 5 6 7 8
Double                  

Declining
Balance
Opening-   25,00 18,75 14,06 10,54 7,91 5,93 4,44 3,33
Book 0 0 3 7 0 3 9 7
Value 
Depreciatio 25% 6,250 4,688 3,516 2,637 1,97 1,48 1,11 834
n 8 3 2

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 Ending 25,00 18,75 14,06 10,54 7,910 5,93 4,44 3,33 2,50
Value 0 0 3 7 3 9 7 3
 

6.6 6th Week Of Internship:

In week four, I learned how to calculate depreciation expense by using units of
production depreciation method. It means we depreciate an asset by observing how
many hours an asset is used for productive purposes. It is not the most commonly
used method as compared to double declining balance method and straight- line
method. It is the least commonly used method in the inventory section of the
finance department, we use it when we have to prepare a schedule of depreciation
for income tax purposes.
FORMULA:
Depreciation = (number of units produced / life in number of units) multiplied by
(cost of an asset- value of the asset).
APPLICATION:
We have a pipeline cost of $25,000 and total supply to 100 million houses and a $0
value. during the first quarter of activity, supply was provided only to 4 million
units.
Depreciation = (4million / 100million) multiplied by ($0-50,000) = $1,000. 
According to this method, the 0-year depreciation is 0 and the ending book value is
25,000. Now 25,000 would be the first year opening book value. After subtracting
the opening book value 25,000 of the first year from the calculated depreciation
amount which is 1,000 an answer of 24,000 is our ending value of the first year.
This value will be the next year opening book value to calculate year two ending
value. The whole process will continue till the mentioned years.
                                          

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CHAPTER 07
                                     SWOT ANALYSIS
7.1 Strengths Of The Company:
7.1.1 Monopoly:
It has a monopoly over the distribution of gas. It is the only largest company
providing compressed gas to households, other firms and industries. It is difficult
to compete with the company as it is the strongest public limited company.
7.1.2 No of employees:
It has eight thousand and above employees (8,000+). All employees are fully
trained as many employees are selected on a monthly basis for the training
purpose.
7.1.3Medical facility:
All medical facilities are free for employees, spouses, parents, children. Medical
allowances are also given to employees. There is no percentage fixed for the
expense, they pay employee medical expenses fully.
7.1.4 Public limited company:
It can buy and sell shares to the general public easily. it means it is officially
registered and listed in stock exchange. It can collect debt and equity easily by
issuing shares.
7.1.5 Capital structure:

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It has a strong capital structure. Both debt and equity funds can be collected in a
suitable ratio according to prescribed manner easily. Debt ratio of this company is
always kept at a low percentage or ratio to make the structure stronger.
7.1.6 Confidence of persons purchase shares:
Public feels secure in investing in this company because they know that their
investment is not at more risk or more loss. They feel confidence in such firms as it
is included in blue chip companies.
7.1.7 Easy access to customers: 
Customers can access the company easily while sitting at home using the internet.
It has options of online filing of complaints and online bill inquiry and online
application forms for the new supply of gas. company and customers use online
means to communicate for any reason.
7.1.8 Many consumers:
The company has a large number of consumers. Company earns revenue from
distribution, connection, complaint and other charges from its consumers against
its all services.
7.1.9 Perquisites for employees:
It provides benefits to its employees in the form of allowances, bonuses, recreation
activities, outdoor activities, employees children education allowances,
accommodation allowances, pensions, gratuity, insurance, hajj expenses, unpaid
leaves.
7.1.10 Financially strong company:
It means it can get loans from anywhere easily. because of its monopolistic nature.
Secondly, as it has a monopoly it quite seems impossible that it will run in

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depression by any means in financial terms. all is possible due to its financial
strength.
7.2 Weaknesses Of The Company: 
7.2.1 Role of human resources department: 
This department of the company is not strong enough. All departments hiring,
firing, and promotion systems are not good due to inefficiency in the human
resources department. Timely things become late due to late processing of
everything in this department.
7.2.2 Consumer issues:
 There are many consumers who do not know how to use the internet when they
cannot go physically and cannot do anything physically. When they file a
complaint they have to wait a lot for their correction of the complaint. For a new
connection procedure starts with filling an application form and the turtle speed
process starts. You always need a reference for the quick work.
7.2.3 Issues in working staff: 
As working staff consists of a co-worker environment so many issues incur in the
environment. Secondly, there are no policies of solving workers' disputes. Workers
have to solve their issues on their own. The environment in such cases for work
becomes sometimes unbearable.
7.2.4 Cut off their budget: 
They have to follow the rules and regulations of the oil and gas regulatory
authority. It gave approval of the budget, if the budget is less, companies have to
adjust in the prescribed budget only special cases are approved for more budget.
7.2.5 Internees training: 

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They give no training to their 6 weeks’ internees. What you learn is based on your
will or urge to learn. You force them to teach. Otherwise, there is not such a
system to give you detail even minor training.
7.3 Opportunities:
7.3.1 Joint venture: 
Company has the potential to join hands with another entity. It is a financially
strengthened company. If it wants to earn more profit, it has to join hands with
another legal entity. It is easy for it to take a step bigger.   
7.3.2 Workshops:
It can arrange large training sessions and workshops for its employees. Company
can strengthen its employees' skills due to training and development
methods provided in workshops through trainers and software.
7.3.3 Subsidized company:
Our government supports this company as it is a subsidized company. It is a public
limited company and mostly shares are held by the government of Pakistan in this
company. It has potential to grow more and more by raising its capital structure.
Government will definitely support it.
7.3.4 Position of company: 
It has a strong reputation due to its competitive advantage as sole distributor of gas.
It also has a strong image in public also. Public invest in this company fearlessly.
They know that there would be less or no risk in this company to invest.  
7.3.5 Skilled management:

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The company has a skilled and experienced management. Workers, managers,
executives all are fully trained and in a problem they can handle any work related
to their work problem easily and efficiently. 
7.4 THREATS:
7.4.1 Political environment: 
The political environment of our country is always unstable. Government takes
unexpected decisions, announces unexpected policies so it becomes a threat when

you encounter an unstable political environment. 

7.4.2 Employee participation:
The company involves its employees less but sometimes ignores them in decision
making. employees feel themselves as less important assets of the company and
de- moralized and become demotivated. 
7.4.3 Technology: 
Technology is advancing day by day. When advancement in technology occurs
humans also have to learn skills, the company of course gives training to its
employees but speedily changing in technology and to train a large number of
workers is still challenging.
7.4.4 Low customer satisfaction:
When the customer is less satisfied you will face recession. As company customer
service is slow without reference so consumers are less satisfied. It is a major
threat which disturbs brand image.
7.4.5 Privatization: 

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If the government takes steps to privatize this company, the worth of the company
will disturb. It is also possible that this company will have to face financial crises
and will be considered a less financially strengthened company in the future if it
happens so.

CHAPTER08

RECOMMENDATIONS

● The human resource department should be strong enough, should take timely
decisions of hiring, firing, training, reward announcing, they should know
when to provide training to its employees.
● A committee should be made to resolve co-worker’s issues and other
disputes in the organization.
● Internees should be given proper training; they should teach that what work
is performing in the company in a proper manner but not with a feel of
burden.
● As soon as possible all customers' complaints should be addressed properly
so that they feel fully satisfied.
● All employees according to their ranks should include or involve in all
decisions the company takes, for the best option.
● Companies should take actions to motivate employees. Like it should give
rewards, incentives, bonuses to its employees. Sometimes words like well
done, excellent motivates employees a lot.

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 ● Job rotation should be done, as employees get tired by doing one job only on
a yearly basis and feel boredom.
● Company is providing less outdoor activities. It should give more
opportunities to its employees for recreational activities.
● If any of the employees is absent it should be replaced with another
employee that the work will not stop.
● Half leave should be given to the employees in the case of urgency.
● The concept of team work should be used.
● Unnecessary staff should be fired.
● According to experience employees should be given promotion timely.

CHAPTER 09
CONCLUSION

The size and financial strength of the company does not state what are the
internal strengths, weaknesses of the company. The detail analysis and detail
scanning shows what is actually wrong and what is actually right. This firm
possesses a strong brand image in the mind of its consumers.

Thus, the company has a lot of potential consumers. It has some weak points
but all weak points become covered due to monopoly both in the market and
in the consumer mind. A lot of working stuff is required in the human
resource department as mentioned in recommendations too.

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This company sounds financially well. It has a good financial capital
structure. It has a sound method of dealing with operations with systematic
software. If it is privatized in future, it will have to face so much crisis.

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