Beruflich Dokumente
Kultur Dokumente
Internship report
Central Power Purchasing Agency Ltd
2nd flour, Gardee Trust Building, NAPIER Road, Lahore
Internee
Muhammad Farooq
CIIT/SP09-MBA-073/LHR
Submitted To
Sir Aleem Afzal
Assistant Professor
Submission date
20-Sep-2010
Acknowledgement
All the praises are for the almighty “Allah” who bestowed me with the ability and potential to
complete this Internship. I also pay my gratitude to the Almighty for enabling me to complete
this Internship Report within due course of time.
Words are very few to express enormous thanks to my affectionate Parents for their
prayers and strong determination to enabling me to achieve this job.
Table of content
The internee…………………………………………………. 1
Acknowledgment……………………………………………. 2
Table of content……………………………………………. ..3
Executive summary…………………………………………. 4
Introduction to NTDC………………………………………... 5
Mission Statement…………………………………………… 6
Central Power Purchasing Agency……………………….... 7
Organizational Structure ……………………………..8
Admin section……………………………………….... 9
Payable section ……………………………………….10
Banking section……………………………………… 12
Imprest section………………………………………. 13
I.O.T section………………………………………….. 16
SWOT Analysis………………………………………………. 17
Learning as internee…………………………………………. 18
Glossary
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Executive summary
The Central Power Purchasing Agency is the largest economic sector of the nation with
revenue exceeding US$ 6 billion. This agency was previously worked under the head of
Wapda and then Pepco and now working in shadow of NTDC. This division is so called
separate from NTDC now but infect this is still working under the shadow of NTDC. The
function of this agency is to buy electricity from Gencos, Hydel and IPPs and sell to Discos.
Recently I have done my internship at CPPA office, in which I got training from each of
it’s sections. The internship basically revolved around the system of work, the interconnection
of sections and the accounting work.
In this report I have given a very brief review of what I have seen during my internship. I
have mentioned the procedures and work nature. Then I have done a SWOT analysis with
explanations.
I have also included some statements which i have learned to prepare and I also
attached the other things I have learned there. I have made it possible to write each and every
information that I have got there. I have taken some information from NTDC website and I also
got major information from duty lists of officers. I have all my practical efforts in the form of this
manuscript that’s the asset for my future career
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Introduction to NTDC
National Transmission & Dispatch Company (NTDC) Limited was incorporated on 6th
November, 1998 and commenced commercial operation on 24th December, 1998. It was
organized to take over all the properties, rights and assets obligations and liabilities of 220 KV
and 500KV Grid Stations and Transmission Lines/Network owned by Pakistan Water and
Power Development Authority (WAPDA).The NTDC operates and maintains nine 500 KV Grid
Stations, 4160 km of 500 KV transmission line and 4000 km of 220 KV transmission line in
Pakistan.
As the Central Power Purchasing Agency (CPPA), for procurement of power from
GENCOs, Hydel & IPPs on behalf of Distribution Companies (DISCOS), for delivery
through 500 kV, 220 kV & 132kV Network.
For secure, safe and reliable operation, control and dispatch of generation facilities.
For Operation & Maintenance, Planning, Design and expansion of the 500 kV and 220
kV transmission network.
Mission statement
To contribute in development of
prosperous Pakistan
by managing smooth and
economical transmission and
dispatch system through
excellence of professional work.
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Under the reformed power sector structure the functions of single purchaser and seller
of power sector were initially assigned to NTDC. In late 2005 however in order to improve the
financial management and bring in the culture of corporate governance in the power sector the
GOP has decided to separate the functions of Single buyer and seller of electricity from NTDC
through creation of a new autonomous body with the title Central Power Purchasing Agency
Limited (CPPA Ltd). The CPPA Ltd is being created as a non-profit independent company
under the companies’ ordinance 1984 as a company limited by Guarantee”.
The Agency is solely responsible for implementation and administering the “Single
Buyer Plus” market mechanisms (ultimately leading to competitive market operations) for
electric Power procurement on behalf of DISCOs and timely payments to Power Suppliers, by
performing and undertaking functions and discharging the responsibilities laid down for the
Company in the Market Rules / Guidelines. The Agency shall also be responsible for
negotiation and management of Power Purchase Agreements and preparing Power
Acquisition Program for submission to NEPRA.
Now the CPPA is a separate entity from NTDC. However, the NTDC will first verify the
utility of electricity that is bought from power generation companies before billing by the CPPA.
Likewise, the NTDC will also verify the utility of electricity that has been sold to power
distribution companies prior to preparing the billing by the CPPA. The NTDC will verify all the
transactions of electricity as the network system of the NTDC will be used for buying and
selling the electricity.
The office of CPPA is situated at Napier road, Lahore, having its own manager finance. The
office consists of following 6 sections;
• Admin Section
• Payable Section
• Banking Section
• Imprest Section
• I.O.T Section
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Organizational Structure
Manager Finance
Treasury(CPPA)
Admin Section
The admin section of any organization can regarded as Driver of office. Similarly the admin
section of CPPA is responsible to run the office.
Different staff is responsible for different duties. The duty list of some officers are as
follows.
Mr. Bashir is responsible to take care of office and staff. His duties include,
• The keep office clean.
• To provide staff T & P’s. The T & P includes office use stationary, Tables, chairs etc.
• He is also responsible to make purchase for office, he buys goods which are not
provided officially.
Payable Section
The Payable section deals with all the payments relating to this office after obtaining the
approval from competent authority.
Mr. Sajjad
Mr. Sajad does the work of cash book. All reconciliation works with banks. Updating of
all L/C’s ledgers and other record to all Misc: work of cash section. Also will keep the L/C’s
documents will the issuance of Debit of the said invoices to the concern offices. To maintain
and update Imprest and collection cash books prepare the Ledger Posting Summery (LPS) of
CPPA.
To look after the work of L/C opening case, extension of dates and enhancement of
L/C’S value raise demands against cost memo received from Bank. To supervise the House
Rent payment cased of MF. (T) & GM.CPPA wapda House, Lahore & to supervise the Wapda
Space Bill, wapda Colony Bill of Gm.CPPA. To look after the computer work of L/C Statement,
Noting, Letters, GST Statement & Also do the Cashier Monthly Statement & other sections
work etc.
To look after the work of establishment and the settlement of old employee GP Funds
cases and also do the all work of payment related to this Office. G.P. Fund, Scholarship, Midas
Cases, Vehicles Payment and all other Misc: payments relating to office of CPPA.
He keep the record of this office G.S.T and attached formation and put up matter of
GST statement for submission to DIRECTOR Sales Tax. He will also put up submission & re-
imbursement of WAPDA .Welfare Fund cases.
Banking Section
The CPPA is the center authority between the all GenCos and all DesCos. It links these.
The CPPA purchases electricity from GenCos and IPPS and sells to all DesCos. This office
collects money from DesCos and makes payment of GenCos and IPPS.
The banking section of CPPA is responsible to check out all the bank's matters like
arrival of payments from DesCos. This section makes two daily statements and sends to
higher authority before the 11 am.
These statements shows the balance of bank accounts as per previous date, all 9
DesCos sends the statement of money transferred to bank accounts of CPPA and all 12 banks
also send the certificates of previous day transactions to this office early morning. Then the
officials in Banking section matches the both certificates for verifying the payments send by
DesCos, and prepare a statement which shows the total balances of all bank accounts which
then send to NTDC office at WAPDA HOUSE.
One statement is prepared on monthly basis, this statements is to claim the interest
against the payments delayed by banks the statement is prepared for each bank and sent to
concern bank at end of month.
Imprest Section
The imprest section makes the payments of electricity purchased from GenCos and IPPS. The
function of this section starts after the advice of payments comes from NTDC head office. This
advise comes after 1 pm normally. The payments depend on the amount received from
DesCos and the statement sent by banking section to NTDC office. All most all money is
distributed daily.
After arrival of advice the staff starts making the vouchers, named to concern banks for
transferring payments to specified account of IPPS and DesCos which are also usually
maintained by same branch of that bank.
The preparation of bank reconciliation statement is also the responsibility of this section.
This statement is prepared on monthly basis of all 7 banks and sent to compilation section for
further correspondence.
1. To write the wapda main cash book & to reconcile the payments with banks statements.
2. To prepare the ledger summary.
3. To prepare the monthly cash transfer summaries in respect of GENCOS and IPPs.
1. To receive the fresh mail from main diary & to deliver the same to concerned assistants.
2. To dispatch the letters & files.
3. To prepare daily requirement of funds distribution.
4. To dispatch funds transfer advices.
5. To maintain the numbering register.
6. To issue the standing instruction to all Bank for Automatic transfer of monthly Imprest.
7. To collect stationary from Admin section & Disburse to staff.
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Whenever the CPPA makes the payment on behalf of DisCos or Govt of Pakistan makes the
payment to CPPA against the subsidy given to DisCos the I.O.T section comes in action.
The main function of this section is to settle accounts of transactions with DisCos,
GenCOs and other offices working between the shadow of NTDC. For this purpose the Debit
note or Credit notes are issued to concern office. For example the Govt of Pakistan give
subsidy to DisCos against the electricity sold to farmers for Water Pumps, in this case the
GOP transfer the money in bank account of CPPA rather than to give this money to each
DisCo and than that DisCo will return this money to CPPA as they are buying electricity from
CPPA. In this way the time, human power and other resources are saved from wastage as well
also this way is economical. In this case the CPPA issues the Debit notes to concern DisCo.
For accounting purpose and particularly for the issue of advices and notes each
accounting unit is identified by code of letters.
Debit advice issued by any authority will be prepared in triplicate. The original Debit
Advices will be sent to accounts officer of the unit, which is to be debited. The first copy will be
sent to the Head Office that authority and the second copy retained by the accounts officer
who issues the debit. All relevant documents in support of a debit should be enclosed with the
original debit advice and forwarded to the account officer of the unit, which is to be debited .all
enclosures with an advice should be listed on that advice.
Debit advices will be numbered in a uniform manner. The code letters of the accounting
units, which is issuing the debit advice, will be given first followed by derail number of the debit
advice. After an oblique, the code letters of the accounting unit to be debited will be given
followed by a serial number for that particular accounting unit.
The advantage of this form of numbering is that the person receiving an Advice will know
immediately the office of origin of that advice, and will also be able to check from the second
serried of numbers whether or not all the debit advices to them originating from that office have
been received and booked by him. If a particular number in the series is missing, the office
from which the debit advice originated should be informed immediately to that effect.
Credit advices are prepared in triplicate. The original will be sent to accounts officer of
the unit, which is to be credited, the first copy to the heads office concerned and the second
copy retained by the accounts officer who issues the credit. All documents in support of the
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credit will be enclosed with the original credit advice and forwarded to the accounts officer of
the unit, which is to be credited. All enclosures with an advice will be listed on the advice.
All credit advices will be numbered in the same manner as the debit advices. There will,
however, be a separate series of numbers beginning from 1, for credit advices.
SWOT Analysis.
Strengths
1. Single buyer and single seller
2. Good staff attitude (no politics)
Weakness
1. Inappropriate division of work
2. Excess staff
3. Excess facilities to employees.
Opportunity
1. Can become separate from NTDC
2. Can become a profitable business
Threats
1. IPPs refusal to sell electricity to CPPA
2. KESC type new companies
Explanation.
1. There is only one origination In Pakistan who can buy electricity from wapda and other
independent producers and can sell to Discos, so this is strength of cppa because there
is not other organization who can compete with it.
2. The attitude of workers is good towards each other, they all are coordinating with each
other and there is no politics and groups between them.
3. Woke is not equally distributed among workers, some have heavy duty.
4. It has also staffed extra employees who does not have to do anything or have to do little
work which other employee can do easily
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5. Cppa employees are still granted free units of electricity, as electricity is not produced
by CPPA so its workers are not eligible to get it free.
6. If the CPPA become separate from NTDC than it can become a profit generating
company and also can become a good organization.
7. IPPs may refuse to sell power to CPPA, in this case it will become hard for it to manage
supply of electricity.
8. KESC is electric supply company which has separate operations form PEPCO and
other govt institutions, may govt announce other Discos as in depended to manage
there operations if this will be done than the operation of CPPA will suffer badly.
Glossary:
Wapda: water and power development authority.
NTDC: National Transmission and Dispatch Company
CPPA: Central power purchasing agency
GenCo: Electricity Generating Company
DisCo: Electricity Distribution Company
IPPs: Independent power producers
TA/DA: Travelling allowance / Daily allowance
IBT: Inter bank transfer (of funds)