R Iaqat LI: Ubmitted O

SUBMITTED TO
DR. LIAQAT ALI

(PRINCIPAL
HAILEY COLLEGE OF COMMERCE) BY
WAJEEH-UR-REHMAN
ROLL # 923
(SECTION:
D(AFTERNOON
HAILEY
COLLEGE OF
COMMERCE
Internship Report : Warid Telecom
UNIVERSITY
OF
THE PUNJAB
LETTER OF TRANSMITTAL
,Dr. Liaqat Ali (Principal) ,Hailey College of Commerce ,University of the Punjab .Lahore
,Dear Sir It is a great honour for me to present you the internship report as required for the .completion of B.com (hons) degree programme The staff of the Warid Telecom has been very Co operative with me in providing information regarding the procedures and processes in practice. Due to certain constraints and legal formalities, I have not been able to gather all the facts and figures about the organization. Yet, the report is a comprehensive one, containing a lot of information. The practical work during the internship period has .been are working and enlightening experience
,Yours truly
Wajeeh-ur-Rehman 8th Semester
All the praise is for Allah, the most merciful and beneficent, who blessed me with the knowledge, gave me the courage and allowed me to .accomplish this task May His Mercy and Peace Be Upon all His messengers including my Mild Tempered Lord, the Sovereign of (scared) Madina, who brought the last and
.final message from Him to a mankind
I am especially indebted to all my teachers for instilling in me enough knowledge to be able to carry myself efficiently during my internship. Secondly, I am bound to thank all the staff of Warid Telecom, especially Mr.Zahid Manzoor(manager Tradefinance) , Mr.Kashif Rehman (A.M Treasury),Mr.Saim Ahmad ( AM. Budgeting and cost control), Mr.Tahir Matloob (Finance) ,Mr.Touqeer Zafar (senior Financial Analyst).In particular their inspiring guidance, remarkable suggestions, constant encouragement, keen interest, constructive criticism and friendly discussion help me to learn
.and enabled me to complete this report efficiently
Im also really thankful to my parents & my family, who are my first teacher in this world
Executive Summary
Internship was my first step in practical life, through which I learnt a lot and it has aided me in being well equipped with valuable experience that would help me once I enter the professional life after the completion of my studies. Internship offered to me was of 4 weeks in finance department which was later extended to 6 weeks so i can complete my project of budgeting reconciliation. During the month of Aug and Sep 2010, I worked in Warid Telecom as an internee. My association with this company was being a part of the Finance Department. It was a great experience for me and it helped me in realizing where my potential lies. What I learnt at Warid Telecom over the weeks was how to get along with the people that I have to work with everyday, building confidence and improving my skills. I tried to remain to the point, in writing the report. Brief history, management, organizational structure of Warid Telecom and my work at EFU Building, Head Office Jail road Lahore. .Suggestions for improvement/Recommendations are also given in it Moreover, particularly being a student of Finance & Accounts it is necessary for me to get practical knowledge of the managerial & financial activities of the organization. So I have tried my best to learn a lot about financial activities. I have made all possible efforts to .summaries the broad history and working of the organization This work is a collection of my observations and experience during the internship period and afterward This internship has also prepared me for my future career in Finance so this internship has helped me a great deal. The experience has taught me responsibility, teamwork
and how to handle problems occurring. Even though the nature of work was quite basic as an internee, nevertheless I got to see what practical life is. This internship overall has been a great experience. This report gives a profile of Warid Telecom and an insight into the Finance department where I was assigned to work. This report also reflects my learning and experiences at Warid Telecom along with my responsibilities and the tasks that I performed. Last part of the report consists of some recommendations and suggestions that I .have given
PREFACE
For the students of B.COM (Hons) the six weeks internship is a golden chance to develop and ensharp the capability and skill of administration and management in the practical environment of different organizations. In the context, I select Warid Telecom (Private Limited Company). This report shows and will guide the readers to have an idea about maintain accounts, its operations and the practices followed today in Pakistan. My reasons for doing the internship program in WARID is to get firsthand knowledge about Finance activities and improve my business life, because .Warid is one of the best organizations indeed I tried to remain to the point, in writing the report. Brief history, management, organizational structure of Warid Telecom and my work at Efu building, head office .jail road Lahore. Suggestions for improvement are also given in it Moreover, particularly being a student of Finance & Accounts it is necessary for me to get practical knowledge of the managerial & financial activities of the organization. So I have tried my best to learn a lot about financial activities. I have made all .possible efforts to summaries the broad history and working of the organization This work is a collection of my observations and experience during the internship period and afterward. The sources of my information for the preparation of this report also include the written notes, literature on banking, and verbal discussion with staff .members, senior students and my fellows Internship Program is a conventional constituent is part of total spectrum of B.COM (Hons). The information contained in the report is based on my personal observation, practical working and interviews with the staff during my internship .training In the end, I would like to say that nothing is perfect in this world. Yet we must put all .endeavours to reach near the line of perfection
TABLE
OF
CONTENT #PAGE
INTRODUCTION.1
4-9
HISTORY OF BUSINESS1.1 INTRODUCTION TO BUSINESS1.2 NATURE OF BUSINESS1.3 ABOUT WARID1.4
MISSION
STATEMENT/OBJECTIVES
10-12
MISSION STATEMENT2.1 VISION2.2 CORPORATE VALUES2.3 ORGANIZATIONAL BEHAVIOUR2.4 POLICES2.5 FINANCIAL OBJECTIVES2.6 LONG TERM OBJECTIVES(1 SHOTRTERM OBJECTIVES(2
.2
ORGINAZATIONAL STRUCTURE & STRATEGY.1

13-23
MESSAGE FROM THE CHAIRMEN1.1 BOARD MEMBERS & MANAGEMENT TEAM1.2 AFFINITY PARTNERS1.3
LIFE KA NETWORK
INTRODUCTION & BACKGROUND
HISTORY OF THE BUSINESS

Cellular mobile Telecommunication services were introduced in Pakistan in 1990.six operators currently provide this service and their subscriber base as of December .2010 Paktel is regarded as the Founder of the Mobile Industry in Pakistan. Paktel was granted a license in 1990 to operate a cellular system across Pakistan and has .improved its network capacity from time to time
INTERODUCTION TO BUSINESS
Warid Telecom launched in Pakistan on 23rd May 2005 but its pre launch operations started working six months before the Launch this shows the planning masters took
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enough time studying Pakistans Market and is well equipped to serve in the field of .service based cellular industries in Pakistan
NATURE OF BUSINESS
Warid Telecom is a private limited registered company. Having registered trademark. The total investment is debt-equity based with the ratio of 40:60. Means the 40% of the total investment is loan based and the other 60 % is equity based. The company have license to sell MOBILE GSM connection and provide of all kinds of mobile connection services to run business
About Warid
Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. Abu Dhabi Group entered into a strategic alliance with Singapore Telecom. Subsequent to this transaction in July 2007, Telecom giant SingTel acquired 30% percent equity stake in Warid Telecom, Pakistan, for US$758 million. This partnership is part of a strategy to support Warid Telecoms continued growth and to enhance its market .position Abu Dhabi Group, one of the largest business groups in the Middle East and the single largest foreign investor in Pakistan. It has diversified business interests, offering strong financial resources and extensive management expertise that result .in commercial success for several institutions SingTels investment in mobile operations include, Advanced Info Service (AIS) Thailand, (21.4%), Bharti Telecom Group India (30.5%), Optus Telecom Australia (100%), Globe Telecom Philippines (44.5%), Pacific Bangladesh Telecom (PBTL) - Bangladesh (45%), Telkomsel Indonesia (35%) and Warid .(Telecom Pakistan (30%
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Abu Dhabi Group

Warid Telecom takes pride in being backed by the Abu Dhabi Group, one of the largest business groups in the Middle East and the single largest foreign investor in Pakistan. It has diversified business interests, offering strong financial resources and extensive management expertise that result in commercial success for several .institutions :The Abu Dhabi group's major investments are in the following sectors Oil and gas exploration Banking and financial services Automotive Hospitality services Property development Telecommunications
The Abu Dhabi Group is led by His Highness Sheikh Nahayan Mabarak Al Nahayan. His Highness is the Federal Minister for Education of the United Arab Emirates and He is the Chairman of Warid Telecom. The Abu Dhabi Group's other successful investments in Pakistan include Bank Alfalah, United Bank Limited, Taavun, Wateen .Telecom and Raseen Technologies Some Major Investments Wholly owned properties and companies Bank Alfalah Limited United Bank Limited :Alfalah Insurance Company Limited Alfalah Exchange Company Dhabi Enterprises Leasing Dhabi Contracting Dhabi Drilling Offshore Rig Operations Abu Dhabi Vegetable Oil Company
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Iranian Sanden Industries PJS Co J.C. Maclean and Co Al Jazira Management Mall National Telesystems and Services ((NTS Neo Pharma LLC
Nama Development Le Royal Meridien Hotel Abu Dhabi Al Ain Palace Hotel
:AD Group consists of
Abu Dhabi co. for wire and wireless communications./Baghdad-Iraq (1 Al-Najmy co. for Internet, Security, alarm and monitoring systems./Baghdad-Iraq (2 Al-Breamy co. for Mechanical, petrochemical and Medical trading./Baghdad-Iraq (3 Al-Baz co. for Broadcasting, Auditorium and voice systems./Baghdad-Iraq (4 AD Geophysical co. for geophysical services./Baghdad-Iraq (5 Eurowall co. for pre fabricated buildings and constructions./Baghdad-Iraq (6 Al-Jazeera Al-Arabia factory for steel wire fabrications./Baghdad-Iraq (7 IBL co. International Business Link L.L.C./ Dubai-UAE (8 Al-Omary Brothers co. for General Trading /Jebel Ali-Dubai-UAE (9 AD co. for general trading./Calgary-Canada (10
SING TEL
Serving both the corporate and consumer markets, the SingTel Group is committed to bringing the best of global communications to customers in the Asia Pacific and .beyond
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With significant operations in Singapore and Australia (through wholly-owned subsidiary SingTel Optus), the Group provides a comprehensive portfolio of services .that include voice and data services over fixed, wireless and Internet platforms In Singapore, SingTel has had more than 128 years of operating experience and has played an integral part in the development of the city as a major communications hub in the region. In Australia, Optus serves more than six million customers. It has driven the competition as the challenger brand and led the way in technological .innovations and breakthroughs Over the years, SingTel has grown to be a global player with a strong regional heritage. With one of the most extensive and advanced Telecommunications .infrastructure, the Group offers unparalleled reach in Asia and beyond SingTel's highly developed international network provides direct connections from Singapore to more than 100 countries. It is a major investor in many of the world's most sophisticated submarine cable and satellite systems. The Group is the second .largest satellite operator in the Asia Pacific SingTel also operates a pan-Asian chain of world-class data centers, providing a suite of managed hosting telco solutions branded EXPAN. Data centers are located in Australia, Hong Kong, Japan, Korea, Taiwan and Singapore. Through marketing .alliances, EXPAN is also available in eight other markets including China and India SingTels ability to support multi-national corporations (MNCs) on a cross-border basis is anchored by its extensive network of SingTel Global Offices (SGOs). Found in 37 cities in 19 countries and territories across Asia Pacific, Europe and the United .States, the SGOs provide MNCs with a single point of contact The Group's other major investments in the region include Advanced Info Service (AIS) in Thailand, the Bharti Telecom Group in India, Globe Telecom in the Philippines, Pacific Bangladesh Telecom (PBTL) in Bangladesh, Telkomsel in Indonesia and Warid Telecom in Pakistan. Together, the Group has around 172
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million mobile customers in eight markets. This is the largest multi-market mobile .customer base in Asia outside of China SingTel employs about 19,000 people worldwide and had a turnover of S$13.15 billion (US$8.41 billion) and net profit after tax of S$3.78 billion (US$2.42 billion) for .the year ended 31 March 2007
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LIFE KA NETWORK
Mission/Vision Statements
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Mission Statement
Warid Telecom's stated mission is to be the leader in innovation and services
Companys Vision
To become the leader in national communications arena with a " strong international presence To be the national communication provider with a strong International presence
Corporate Values
Organizational behavior
Warid Telecom is a commercial organization and only profit is not its .objective Warid Telecom is working as a private company with the direct foreign .investment Warid Telecom is a large organization having a large number of employees at .middle level, lower level and non managerial level
Policies
17
Warid Telecom believes in working with strategic partners and employees for long term relationships. As a consequence of the above Warid Telecom is looking for the :following to deliver its vision Strategic vendors and partners to assist in rolling out these services in a timely and efficient manner with a focus on turnkey solutions and premium propositions. Strong partners to assist in launching these services and creating effective sales & marketing/business development opportunities for all the operationally and financially gain. Consultants and experts to help deliver the vision. Well rounded .employees who wish to become part of this adventure
FINANCIAL OBJECTIVES
The basic goal of any firm is to earn money or generate profits on its investment. Warid Telecom has clear strategies to maximize profits by selling more. Company is working well according to its plans and strategies and has been very successful to achieve all its financial goals. Its expanding day by day and the financial status of .the company is improving constantly Warid Telecom, had acquired over1350,000 customers since the network went live on 23 May. The GSM/GPRS network was built from scratch, starting on 23 October 004, and at launch covered 28 cities, Warid is attracting an average of over 10,000 .new customers daily Companys financial objective is to increase profit by using the selling technique of more selling to maximize profit. The company not only wants all the financial benefits but its wants to serve people and by charging less. The more the people get use to .of that, the more profit could be earn by the company
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SHORT TERM OBJECTIVES :As the company is new the short-term objectives are as follows Improve quality.1 Satisfy customers.2 Increase outlets.3 Provide all the advertised features.4 (Work according to the strategies to achieve goals (SHORT TERM.5 LONG TERM OBJECTIVES :Companys long-term objectives are as follows Work with Government to cut prices and provide better quality.1 Control inflation in the country.2 Set standards for the market and involve Government in it.3 Network in whole Pakistan.4 To achieve all the financial benefits by serving people.5 (Work according to the strategies to achieve goals (LONG TERM The Warid New Look An evolution that strengthens the Warid identity while keeping the customers in :focus Use of a more contemporary font & style to give a more approachable image This new logo encompasses the expanding reach of Warid not just in Pakistan but in an international footprint With our strengthened GPRS/EDGE network we would empower our customers to create their own life style networks
Old Look New Look

19
LIFE KA NETWORK
Organizational structure & Strategy
20
Message from the Chairmen
His Highness Sheikh Nahayan Mabarak Al Nahayan Chairman By the grace of Allah we have completed four successful years of Warid Telecom Pakistan and are beginning an exciting fifth one. In these three years since Warid Telecom has launched in Pakistan, our organization has gone from its conceptual infancy stage to a challenger, and finally are moving forward to become a .force. We have expanded in every way possible In our fifth year, we will continue to expand and take our network and subscribers to the most dominant levels of Pakistan. We wish to make this year a new era for ourselves and the country, a time when Warid Telecom will become the primary service provider for all communication needs. We will spare no effort, cost or determination to ensure that Warid Telecom becomes a company to serve the .people of Pakistan most effectively
Board Members
Mr. Bashir Tahir Chief Executive, Dhabi Group Advisor to HH Sheikh Nahayan Mabarak Al Nahayan &
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Mr. Tahir is a career banker since November 1962, and was previously the CEO of Union National Bank. He has over forty years experience in finance and over the past 12 years has applied it into advising and leading private equity and buyout ventures for the members of the UAE royal family and their co-investors. Mr. Tahir is a pioneer for encouraging the collaboration of the various family offices of the ruling .families in the region to help form what is now known as the Abu Dhabi Group Mr. Tahir represents the interests of HH Sheikh Nahayan Mabarak Al Nahayan through his board memberships as well as actively monitoring and advising the .portfolio companies
Mr.Pervaiz A.Shahid
Board director
Mr. Parvez A.Shahid is a Pakistani national with a vast experience of more than 30 years in the banking sector. Currently he Is eExecutive In-charge of Strategic Planning Division, bank Alflah and authorized power of attorney holder of Warid .Telecom (private) Limited
Mr. Lim chuan poh

Board director
Mr Lim, joined Singtel in October 1998. He was appointed EVP in feburary 2006. In October 2006, Mr Lim assmed the position of CEO (international). He is responsible for SingTel`s regional associates and supports the growth objectives of Singtel`s .business groups through strategic investments in the region
22
Mr. Quah kung yang

Board director
Mr. Quah is presently the vice-president (business management), International group in singtel, overseeing new investment oppertunites as well .as existing investments in the region
Management Team
Mr. Muneer Farooqui Chief Executive Officer Mr. Muneer Farooqui has served as CEO of Warid Telecom International Limited, Bangladesh for over four years. In view of his dynamic work experience in Telecom secotr and proven leadership in various capacities where his last assignment was CEO of Warid Telecom, banglades, he has been assigned to undertake his responsibilities as CEO of Warid Telecom (pvt) limited, Pakistan, to optimize and lift the business performance of the
23
company from its current level and ensure a potential niche for the company
.in the local Telecom industry
Mr. Tariq Gulzar Chief Financial Officer Mr. Tariq Gulzar brings with him a combined professional and industry background gained from over 15 years of experience in assurance, internal audit, accounting, risk management and general consulting in Telecom and media industries. Mr. Gulzar is a fellow chartered accountant (Pakistan), a certified public accountant (Colorado, USA) and a certified Internal Auditor
.((New York, USA
Mr. Shahzad Rauf

Chief Strategy & Operations Officer
Mr. Shahzad Rauf joined Warid Telecom in march 2005. Prior to joining the company, Mr. Rauf was a founder and CEO of WebLight Productions Inc. providing B2B e-commerce supply chain management solutions for the food
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industry. He also have over 10 year experience of finance and information

.technology departments of public sectors in USA
Mr. Muhammad Irfan Chaudhry

Chief Technical Officer
Mr. Irfan joined Warid Telecom in November 2004. He has got 15 years of local and international cellular experience gained by working in operations, projects, planning, performance and services departments of multinational
.operators and vendor
Before joining Warid Telecom, he has worked with Ericsson, Cingular

.Wireless USA and Paktel. He is a Engeneering University Lahore graduate
Affinity Partners
Warid is one of the world's largest mobile operators, with over 18 million subscribers in Pakistan alone and millions more to come. We offer cutting edge products like Blackberry, and innovative services like Caller Tunes, 123 FREE, and enterprise
25
solution packages. More importantly to you, our great range of price plans and .special offers attracts thousands of new customers everyday .We already have under mentioned companies as our proud affinity partners
BANK ALFALAH CREDIT CARD BANK ALFALAH BRANCHES
MCB Credit Cards
4B TELECOM
VIVA TELECOM
MOBILE ZONE
NOBEL COMMUNICATION
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(Organization Structure (Organization chart

BEC
CEO Adviso CCO CSO GM Divisional Manager Assistant . Manager RMC CIO
Assista nt.
Z.S.M B.C.M
ORGANIZATIONAL DEPARTMENTALIZATION
Assista nt.
FM
27
Warid Telecom (Pvt).Ltd head office is in EFU House on Jail road, Lahore. Warid has the maximum number of Sales and customer Service Centers countrywide, backed by two state of art Contact Centers of international standards that are equipped with the right facilities to ensure real-time online services. Their highly trained and well-groomed team of Customer Service Executives provides round the clock support. Warid has setup corporate lounges, with a customer-friendly environment to provide personalized care to our corporate clients. Furthermore, an extensive network of franchises, kiosks and mobile units ensure easy and .convenient accessibility :Different division, departments and functionaries working in head office are Finance.1 Human Resources.2 Marketing.3 Sales & Customer services.4 Administration.5 Products & Services.6 Procurement & Logistics.7 Legal Affairs.8 Engineering & Information Technology.9 Audit & Risk Services.10 Quality Assurance.11 International Business.12 Public Relations.13 Operations and Project Management.14 Govt. Relations.15
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Finance Department
Finance department of Warid Telecom is accountable for all the issues related to financial transactions no matter it is managerial accounting or financial accounting. Finance department of Warid Telecom deals with issues related to Financial Accounting, Fixed Assets, Accounts Payable, Tax Returns, General ledger maintenance and treasury control. So, finance department is divided in two divisions .according to matters dealt
Financial Accounting Division

Financial accounting means reporting of the financial position and performance of a .firm through financial statements issued to external users on a periodic basis .Financial accounting divisions of Warid Telecom consist following sections
Operations Section
Financial accounting related to operations. Operations include the financial issues .related to franchises operations
Fixed Assets Section

Fixed assets division of Warid Telecom looks after the fixed assets of Warid Telecom. Fixed assets are very important for every organization because fixed .assets tell the worth of the company
Accounts Payable Section

Accounts payable division of Warid Telecom looks after the liabilities to be paid. .Account payable is very important for better credit rating of a company
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General Ledger Section

General Ledger division is responsible for developing T-accounts which specify .detail of each account separately
Treasury Control Section

Treasury control section looks after the finances, controls the budgets and investments made by country from treasure. It includes all maters related to Trade .finance and import functions
MANAGERIAL ACCOUNTING
The process of identifying, measuring, analyzing, interpreting, and communicating .information for the pursuit of an organization's goals The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at providing information to .parties outside the organization In Warid Telecom this division deals with the accounts management and co.ordinates with the financial accounting division
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LIFE KA NETWORK
Warid in Telecom Market
31
Market Overview Of Mobile Companies in Pakistan
The Pakistan market has nearly 97 million subscribers as of Nov2009 (PTA data).The growth slowed down in 2009 but has picked up again gradually. See more .about the recent competition among mobile network providers
For those interested in the change from last year, the chart below shows the market share of mobile phone companies of Pakistan, as of September 2008. Compared with July, the market share changed little. Mobilink lost 1% share (35%), picked up .by Zong which is cash rich and has a ready-to-invest attitude
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The ARPU in Pakistan remains low and is not projected to go up. The year 2008 was marked by changes in SIM sales and registration process, enforced by PTA, the .government regulator
Now lets review some recent history. At 2006 year end the total subscribers were 48.2 million. In June 2007 the total mobile users reached over 63 million. Based on numbers published at PTA website for 2007, the total number of subscribers (technically it is the number of SIMs issued) was 76.6 million, a tele density of nearly 49%. In 2007 the average growth rate was about 2.5 million new subscribers each month! After second half of 2007 it seemed as if the growth had slowed down but overall it was fine. One remarkable achievement was by Zong (formerly Paketl) which launched very successful campaigns towards 2007 end completed rebrand launch in April of 2008. See this chart for a breakdown of market share by mobile .companies at the end of Q1 of 2007
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.Heres a brief description of the top mobile companies in Pakistan At the top is Mobilink, the Pakistani unit of Egypt-based Telecom company Orascom. It has been operating in Pakistan since 1994. .Subscriber share is 35% at the end of Sep 2008 Ufone, a wholly owned subsidiary of Pakistan Telecommunication Co. Ltd (WARID), is now under the control of Etisalat group of UAE. It has 21% of subscriber share and added the most lines (2.4 million) from 2006-07. For those in Pakistan it is the one company where they can easily invest .locally
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Warid, owned by the Abu Dhabi group of the United Arab Emirates and sister of Wateen group is number 4 with 18% market of .subscribers. Recently it sold 30% share to SingTel Norways Telenor, a recent entrant with about a billion US dollar investment in Pakistan has been doing well, based on its recent earning report. It has about 20% of the market share. Telenor stock is listed in the .(Oslo stock market (TEL) and in US(TELNY.PK CM Pak (Zong brand), formerly Paktel, was the latest target of foreign acquisition. After it got acquired by China Mobile it was rebranded as Zong and launched one of the most successful and aggressive campaigns. Within a .matter of few months, Zong has achieved a 6% market share
Pakistanis Send 106 Billion Text Messages a Year According to PTA report of December 2009, a total of 106 billion text messages were sent across the 5 cellular networks in Pakistan in 2009. If you assume 95 million .subscribers on average, it comes to 93 messages per person per month
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The average numbers for Pakistan are not very high when compared with some of the other top countries but the actual distribution across various segments and demographics varies .very significantly. For instance, the youth tends to rely more on text messages
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Warid Offerings
Warid puts a great focus on development of its products according to the customer demand and satisfaction. In recent year Warid has introduced Glow and made a greater impact in the .market Warid Telecom offers three main products that are Zem Prepaid.1 Warid Postpaid.2 Glow.3
Zem Prepaid
Zem prepaid is a service for which customer has to pay in Advance for which he/she is going to use. Enjoy a prepaid convenience that is backed up by the promise of service, service & more service. Not only it is simple to use but it also offers a host of revolutionary products & features that will forever .change the way you communicate .Zem prepaid offers two major type of services Voice based Text based
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Voice based Services

Voice related services include communication services which are associated with the transfer of voice. When Warid started its services there were two leading GSM cellular companies, one was Mobilink and the other was Ufone. Mobilink was the main market leader and Ufone was the successor in Pakistan. Then the main challenge for Warid was to attract customer towards it with the help of such services that will be exciting and attracting enough to move .customers from the competitors
Text Based Services

Zem also provide many text packages so that u can text on any network with the cheapest rates any time any where. Also multi media messages (MMS) on the cheaper rates then any .other network Warid introduced various call packages with cheaper rates for each type of customer .according to there need. So every customer can switch to calling plan that suits him the best
:Calling plans
.Warid had introduced three calling plans Zem 1 second, Zem LCR 30 second, Zem 60 Sec .Each package is offering different call rates and sms plans
Charges Zem Second 1 Zem Lowest Call Rate Seconds 30 Zem Seconds 60
Airtime (Friends & Family (On-Net (Friends & Family (Off-Net (On-Net (Warid to Warid (Off-Net (Landline (Off-Net (Other Mobile Messaging 0.02 0.03 0.04 0.05 0.49 0.75 0.75 0.85 0.85 0.75 1.25 1.75 2.25
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SMS (On-Net (Warid to Warid (Off-Net (Other Mobile International MMS VAS Value added services Mobile Internet Zem Talky Zem Talky International Warid Menu Services Warid Phone book Backup Mobile Downloads Ringtones Wallpaper/Logo/Animation/Picture Messages Caller Tunes Subscription Caller Tunes Tone Assignment Caller Tunes IVR (105) Charges (Funstore (555
Other Charges FnF Addition FnF Deletion
0.50 1.00 5.00 3.00
0.50 1.00 5.00 3.00
0.50 1.00 5.00 3.00
Re. 1.00/Unit 0.99/30sec 3.00/30sec 2.00 Rs. 115/Year
2.00 2.00 Month/10 Song/10 Minute/5 Minute/5
9.00 2.00
9.00 2.00
9.00 2.00
:Call
& Sms Packages
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Hourly Package .to Warid) numbers for Rs. 3+ tax
Warid Minute Package 1.20/min
Voice Craze Enjoy 150 minutes of talk time and 50 minutes of talky messages !every week
Make unlimited calls to On-net (Warid Koi bhi number Koi Bhi Network Rs.
Buy Zem Prepaid Order Warid prepaid connection .and we will deliver it to you
SMS Craze The only SMS, MMS & Mobile Internet package in Pakistan
infiNite Craze All Night Free Calls to 5 FnF Numbers & SMS/MMS to any !network in Pakistan
Warid
Postpaid
Warid post paid connection is associated with Royalty. Post paid subscription is also called a billing connection. In this type of a connection, you can avail the services of cellular connection first and pay the usage at the end of the month. On consistent and regular payment and high usage pattern you could win yourself the opportunity to enjoy exclusive loyalty and frequent user facility provided by Warid Telecom. Keeping in mind our brand philosophy, Warid postpaid is a name that depicts class and sophistication. Warid postpaid that defines .commitment and satisfaction to the customers Like zem prepaid Warid postpaid is also offering both voice related services and text based .services Calling Plans Warid postpaid when launch was called Zahi Postpaid. Zahi means royalty. And it was offering 5 calling plans to the mobile users. These plans were after re launch, zahi postpaid
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was replaced by its generic name that was Warid postpaid. Warid also revised tariffs for the :postpaid calling plans. Now the Warid postpaid calling plans are
:Post Paid Packages
Upgrade yourself with the new Warid postpaid
Enjoy unlimited calls 24/7 on your 5 FnF numbers Rs.500 line rental
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Pay 3 months line rent in advance & get the
Warid announces a value offer for its postpaid
.Fourth months line rent free.
Subscribers
Bill payment via Scratch card
Bill by Email
Bill payment is as easy as 321)
Now you can) receive your bills through email
Glow
Feel Free
Warid brings you an exciting new prepaid brand which is as different from others as you are. GLOW empowers you to make choices in service and style. You take the call on how you make your calls. The best quality !network gives you what you really want. Total control
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.Warid have introduced glow 1.0 with the great rates on the best network Call Rates
(.Call rates (Rs Weekdays Peak GLOW GANG On-net Off-net 0.45 0.79 0.89 Off-Peak *FREE 0.69 0.89 Weekends Peak *FREE 0.69 0.89 Off-Peak *FREE 0.69 0.89
UNLIMITED SMS BUNDLES GLOW Unlimited SMS Bundles Exclusive of taxes Enjoy 250 SMS at Rs.2.99/day Enjoy 700 SMS at Rs.6.99/week
Glow
.Keep Glowin
2.o
After The success of Warid Glow 1.0 Now, Warid brings you an electrifying prepaid brand, which is as unique as you. Loaded with exciting new features, Glow introduces you to a world where you define your own style. You choose how to make the best use of our incredible services. Finally, a high quality network gives you what you really want- Complete !Control (Call 10 Glow Gang Friends with Glow 2.0 (5 off-net & 5 on-net numbers .Any number, Any network for just Rs. 0.61/30sec
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Glow 2.0 Services

Mobile fun Social networking Mobile internet Go global Sms bundles Fuel Night and weekend package Sports Music
Call Rates
Tariff Weekdays Peak Off-Peak Peak Weekends Off-Peak
Glow Gang Friends (favorite off-net numbers 5) Glow Gang Friends (favorite on-net numbers 5)
Rs. 0.61
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Rs. 2.99/call
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(On-net (Warid to Warid
Rs. 0.75
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Rs. 0.75
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Off-net (Warid to Other (Mobile Networks & Landlines
Rs. 0.85
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:Glow 2.0
Gang
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Favorite 5 off-net & 5 on-net numbers On-net: To all other Warid numbers Off-net: To all other mobile networks & landline numbers Weekdays: Monday to Friday Peak hours: 8am to 11pm Off-Peak hours: 11pm to 8am Weekends: Saturday & Sunday Peak hours: 5pm to 11pm Off-Peak hours: 11pm to 5pm Glow SMS Bundles Unlimited texting in the World of Glow .Send unlimited SMS to any number, any time, on all networks in Pakistan SMS @ Rs. 2.99+tax/day 250 SMS @ Rs. 6.99+tax/week 700
PRODUCTS AND SERVICES
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Warid presents a wide selection of value added services that ensure you well manage your life via your mobile phone & express yourself effectively. The world of Warid Value Added Services has unlimited options of not only communication, but also convenience, entertainment & personalization. These services comprise a myriad of options from entertainment to utility based services. You think of it and we have it! Keep exploring & stay !amused
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Caller Tunes - Song Search Search for your favourite song, and !set it as your CallerTune
(VOW (Videos on Warid Enjoy FREE entertaining videos on .the go
Islamic Services 786 Dial 786 from your Warid number and listen to Quranic Ayat, Hadith, ...Namaz
Warid Call Block 9211 Warid is proud to launch Warid Call Block 9211 service that instantly makes you get rid of those annoying calls
Surf @ Twilight .mobile internet
Warid SMS Email .via SMS
Enjoy the unlimited freedom of Now get your e-mails on your mobile
Warid Comedy Corner
Bill Payment via ATM TopUp via ATM
!IM Over SMS !Let your fingers do the talking
!Ab hasso dil khol ke Warid offiers Bill Payment & prepaid
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LIFE KA NETWORK
Learning As a Student Intern In Warid Telecom
48
My Workings in Departments
Trade finance Planning & Budgeting Budgeting & Cost control
Trade Finance
saa'International trade' is the exchange of goods and services across international

.boundaries or territories International trade can be defined as either the buying (importing) or selling (exporting) of goods or services on a global basis. In most countries, it represents a significant share of GDP. While international trade has been present throughout much of history its economic, social, and political importance have been on the rise in recent centuries, mainly because of Industrialization, advanced transportation, Globalization, Multinational corporations, and outsourcing. In fact, it is probably the increasing prevalence of international trade that is usually meant by the term .""globalization International trade is also a branch of economics, which together with International .finance, forms the larger branch of International economics
Methods Of Payment .There are four methods of payments in the international trade which are as under
:ADVANCE PAYMENT.1
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In this case importer pays the exporter in advance & gets goods & services (later. (No obligation on Bank
(DOCUMENTARY CREDIT (LETTER OF CREDIT.2
It constitutes a definite undertaking of the bank to pay the exporter provided that the exporter presents the documents which comply with the terms & conditions .of the LC
COLLECTION.3
The exporter (Principal) present documents to his bank (Remitting Bank), who send the documents to an importing countrys bank (Colleting Bank) to deliver documents against payment or acceptance to Importer (Drawee). URC 522 (Universal Rules for Collection 522) governs the rules of collection. (no (obligation on Bank
OPEN ACCOUNT.4 In this case exporter trusts the importer and sends the goods / services in .(advance & get paid later (no obligation on bank LOW HIGH
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RISK EXPORTER
CE PAYMENT LETTER OF CREDIT COLLECTION OPEN ACCOUNT
ADVAN
RISK IMPORTER
HIGH
LOW
WHEN DOCUMENTARY CREDIT USED
There is doubt about importer solvency / ability to pay for goods or services delivered There is concern about the stability of the political, economic or legal system of the country of import There is possibility of foreign exchange restriction may account in the (country of import. (IRAN Govt. regulations may require the use of letter of credit to settle certain / .all international transaction The importer is concerned about the exporters ability to perform under .sales agreement
ADVANTAGES / DISADVATAGES OF DOCUMENTARY CREDIT
:ADVANTAGES FOR EXPORTER (Has an undertaking of settlement from a bank (not dependent on importer
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Settlement upon shipment rather than delivery Possible to control over goods (Transport document not in the name of (importer Possible access to bank finance
:DISADVANTAGES FOR EXPORTER .Expensive compared to other method of settlement .Require greater effort & accuracy in documents preparation Require detailed knowledge of UCP 600 ( the rules govern the operation of (documentary credit .Often subject to specific detailed conditions
:ADVANTAGES FOR IMPORTER Can set conditions in credit that may be adhered to before settlement is .made Ability to specify when, how & where the goods are shipped by incorporating the date of shipment, mode of transportation & port of discharge in LC .conditions .Banks will not make settlement unless correct documents are presented .Possible access to bank finance
:DISADVANTAGES FOR IMPORTER .Expensive compared to other method of settlement Require detailed knowledge of UCP 600 ( the rules govern the operation of (documentary credit Utilization of bank credit loan .Delay in receipt of documents compared to open account
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DOCUMENTARY CREDIT CYCLE 10 BASIC STEPS Before issuance of letter of credit exporter issues proforma invoice & forward to .importer which contains the following details Price Quantity Description of goods / services Insurance Transport Details
If importer happy with the terms of pro forma invoice he issues a purchase order & the two parties enter into a sales agreement. Now we move towards the 10 basic .steps involved in normal DC transaction
:Step 1 .Importer applies to the issuing bank to issue a LC :Step 2 The issuing bank checks that the application is complete, precise and .satisfies internal credit approval :Step 3 The issuing bank issues documentary credit subject to UCP 600 (Universal (Customs Practices :Step 4 .The advising bank advices the LC to the exporter
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:Step 5 .The beneficiary examines the terms & conditions of the documentary credit :Step 6 The beneficiary ships the goods & complete the documents required under .LC :Step 7 The nominated bank checks that the documents comply with the terms in the credit. If they comply settlement may be made. Documents than sent to the issuing .bank :Step 8 The issuing bank examines the documents that the documents comply with .the terms of credit :Step 9 The documents comply the issuing bank reimburses the nominated bank within 05 working days as per UCP 600 rules. Nominated bank makes settlement to .beneficiary if not done so :Step 10 The issuing bank releases the documents against payment to the applicant. .The applicant now collect the goods
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LC OPENING DOCUMENTS L/C ADVICE DEBIT AUTHORITY IB-8 FORM PROFORMA INVOICE (LC DRAFT (MT-700 INSURANCE POLICY (MARINE ENDORSEMENT (IF REQUIRED
ENDORSEMENT OF SHIPPING DOCUMENTS Airway bill Commercial invoice Packing list Insurance advice
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:SHIPPING DOCUMENTS Endorsement letter Copies Of Airway Bill Copies Of Commercial Invoice (Demand Slip For Import Duties (From Cargo Company (Duties Schedule (Made By Warid Against Duties Schedule LC Payment Terms ON SIGHT.1 ON Draft 30 ,60 , 90 DAYS.2 A bill of exchange is issued for 30 , 60 or 90 days draft. Always 2 bill of exchange .are issued so if 1st is lost the 2nd can be use .Debit invoice is then issued by bank against the B/E payment On PAC, FAC.3 (PAC : (PROVISIONAL ACCEPTANCE CERTIFICATE Provisional acceptance means in respect of implementation phase, a PA means a milestone indicating either the buyer accepts the test completion report, or that .commercial launch for the implementation phase has occur , whichever is earlier (FAC: (FINAL ACCEPTANCE CERTIFICATE
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Final acceptance means a milestone indicating either buyer accepts the supplied solution and that all acceptance criteria have been met or 60 days from passed from .the date of last Provisional acceptance. Whichever is earlier : Documents attached with PAC/FAC Payment request sheet as per service/purchase order Commercial invoice Sales tax invoice Annexure -- details : Amendment in LC In case of any amendment in L/C a message of amendment is sent to the bank by the company. Bank charge an amount and issue a debit invoice after the .amendment is made in L/C Telex Charges Ordinary L/C AMD Commission FED CHARGE :L/C MARGIN margin of L/C is taken by the bank in start. It can be also be more or less as 100% the case maybe. At the time of payment margin is returned and then we make the .payment .Margin reconciliation is done at the end of every month IMPORT ON CONTRACT BASIS
:Documents
Contract of two companies Approval note for the contract from higher authorities
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Purchase requisition Purchase order Pro forma invoice Registration of bank contract Request for establishment of import contract Import contract registration Retirement Note by bank after receiving required documents.eg (commercial (invoice, B/L etc Debit approval from importer Debit authority given to importer bank Swift message sent to exporter
Amendment in import Contract

If any amendment is required in the contract a request letter is send to the bank for .amendment .Eg Enhance the amount of contract by US $626.32 making total value of contract US .$ 9937.37 all other details as per beneficiary pro forma invoice Banks accepts the request and do amendment as required by the client. All other .conditions remain the same
-:NOTE We can delay the payment in contract on mutual agreement. Its not necessary to pay on specific date as in L/C. That is because both companies have good relations .b/w them
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:Addendum Internal document agreement Once a major contract is made after that every time we purchase we can do .amendments in the existing contract .E.g increase the price , quantity, change payment terms etc Addendum is issued on which signatures of both company witnesses are made After that notice of approval for the addendum is issued and signed by the higher .authorities like CEO, CFO, BOP, CSO .Purchase order is then sent to exporter
:Planning & Budgeting Planning and budgeting department is concerned with preparation of budgets and making forecasts for coming years to help in decision making and planning in the .present Forecasting is The process of analyzing current and historical data to determine future trends
Planning is a tool which helps management in its attempts to cope with the uncertainty of the future. It starts with certain assumptions based on the management's experience, knowledge, and judgment. These estimates are projected into the coming months or years using one or more techniques such as Box-Jenkins models, Delphi method, exponential smoothing, moving averages,
59
regression analysis, and trend projection. Since any error in the assumptions will result in a similar or magnified error in forecasting, the technique of sensitivity analysis is used which assigns a range of values to the uncertain factors (variables). A forecast (which indicates what 'might' happen) should not be confused with a .(budget (which shows what 'ought' to happen
.Eg Stock analysts use various forecasting methods to determine future stock price movements, earnings, etc. Economists use forecasting techniques in order to .determine future economic trends Most people view the world as consisting of a large number of alternatives. Futures research evolved as a way of examining the alternative futures and identifying the most probable. Forecasting is designed to help decision making and planning in the .present Forecasts empower people because their use implies that we can modify variables now to alter (or be prepared for) the future. A prediction is an invitation to introduce change into a System
FORECASTING METHODS
All forecasting methods can be divided into two broad categories: Qualitative and Quantitative. Many forecasting techniques use past or historical data in the form of time series. A time series is simply a set of observations measured at successive points in time or over successive periods of time. Forecasts essentially provide future values of the time series on a specific variable such as sales volume. Division of forecasting methods into qualitative and quantitative categories is based on the .availability of historical time series data
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QUALITATIVE FORECASTING METHODS

Qualitative forecasting methods are based on educated opinions of appropriate persons
Delphi method: forecast is developed by a panel of experts who anonymously .1

answer a series of questions; responses are fed back to panel members who then may change their original responses very time consuming and expensive new groupware makes this process much more feasible .Market research: panels, questionnaires, test markets, surveys, etc .2 Product life-cycle analogy: forecasts based on life-cycles of similar products, .3 services, or processes Expert judgments. by management, sales force, or other knowledgeable persons .4
QUANTITATIVE FORECASTING METHODS TIME SERIES FORECASTING METHODS Time series forecasting methods are based on analysis of historical data (time series: a set of observations measured at successive times or over successive periods). They make the assumption that past patterns in data can be used to .forecast future data points Moving averages (simple moving average, weighted moving average): forecast is .1 based on arithmetic average of a given number of past data points Exponential smoothing (single exponential smoothing, double exponential .2 .smoothing): a type of weighted moving average that allows inclusion of trends, etc
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Mathematical models (trend lines, log-linear models, Fourier series, etc.): linear .3 or non-linear models fitted to time-series data, usually by regression methods Box-Jenkins methods: autocorrelation methods used to identify underlying time .4 .series and to fit the "best" mode
Forecasting In Different Sectors
Financial Forecasting
Financial Forecasting describes the process by which firms think about and prepare for the future. The forecasting process provides the means for a firm to express its goals and priorities and to ensure that they are internally consistent. It also assists .the firm in identifying the asset requirements and needs for external financing
Telecommunications forecasting
All telecommunications service providers perform forecasting calculations to assist them in planning their networks. Accurate forecasting helps operators to make key investment decisions relating to product development and introduction, advertising, pricing etc, well in advance of product launch, which helps to ensure that the company will make a profit on a new venture and that capital is invested wisely
Manufacturing Forecasting
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The manufacturing challenge is to deliver the best possible service with the forecast information they can reasonably expect. The long term solution to the problem of sales forecasting is to increase flexibility and reduce lead times to the extent that you are able to react faster than your customers. The forecast then becomes much less .important except as a long range or strategic planning tool
Budgeting
Establishing a planned level of expenditures, usually at a fairly detailed level. A company may plan and maintain a budget on .either an accrual or a cash basis
Business budgeting is one of the most powerful financial tools available to any smallbusiness owner. Put simply, maintaining a good short- and long-range financial plan .enables you to control your cash flow instead of having it control you The most effective financial budget includes both a short-range, month-to-month plan for at least one calendar year and a long-range, quarter-to-quarter plan you use for financial statement reporting. It should be prepared during the two months preceding .the fiscal year-end to allow ample time for sufficient information-gathering Many financial budgets provide a plan only for the income statement; however, it's important to budget both the income statement and balance sheet. This enables you to consider potential cash-flow needs for your entire operation, not just as they pertain to income and expenses. For instance, if you'd already been in business for a few years and were adding a new product line, you'd need to consider the impact of .inventory purchases on cash flow :There are thee main budgeting techniques Incremental budgeting Zero-based budgeting Flexed budgeting
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Incremental Budgeting
The incremental approach to budgeting combines the costs identified from the previous accounting period with percentage additions. These percentage additions are utilised to cover two key areas which include cost increases as a result of inflation or higher purchases costs and predictions associated with increases in .costs and income as a result of business volume predictions A key limitation of the incremental budgeting system is the manner in which percentages are added in a blanket fashion resulting in the likelihood of higher overall costs in the long-term. This may then also result in a business having to .increase its sale prices to a level that is no longer competitive
Zero-Based Budgeting
Zero-based budgeting system requires budgeting to commence with the assumption that every cost has a zero base. Next, each item relating to expenditure is worked through and decisions are made as to whether the purchase is completely essential. Then different purchasing options associated with the specific item are explored as a .means of ensuring the item is obtained as cost-effectively as possible One of the main limitations of the zero-budgeting system is that it can take an awful lot of time to work through each individual cost in this manner. However, it is fair to add that utilising this approach will then provide an extremely useful database .containing valuable, time-saving information for the years to come
Flexed Budgeting
64
As with zero-based budgeting, the flexed budgeting system gives its name away in the title as it involves 'flexing' the normal budget. The benefits of flexed budgeting are that it is likely to be considerably more accurate as the budget is adapted to suit various external changes. Within this approach managers are able to provide key information resulting in an achievable budget, pessimistic budget and optimistic .budget Through undertaking the process of flexed budgeting, managers are better able to make important decision relating to risk and expenditure, having gained a wider .perspective on best and worst outcomes Budgeting & Cost Control :The major Tasks in this department are Business case Evaluation Decision making For approval of budget Variance analysis Using ERP Whenever budget is required for any new project an approval note is sent to the budgeting and cost control department for approval. Here the project is evaluated with the help of past records and it is calculated that weather this project will give benefit to the organization or not. If its more costly and cannot generate revenues .within 6 months the project is canceled
Duties
Week 1
65
( Mr. Zahid Manzoor (Manager Trade Finance My Internship Started in Trade finance department. Where I learn about international trade. In Warid only import activities are performed. I got a chance to study many import cases. L/C opening procedures. Shipment and other documents preparation. Also I worked on an import case with Manager Trade Finance. Trade Finance activities L/C Opening Procedures Preparation of Import documents Endorsements Preparation of LC draft Week 2 ( Mr. Kashif Rehman (Asst. Manager Treasury Here I studied about IC (import contracts). How they are made, what
.
documentation is used, and how Import on contract bases are done Contract Management Shipment record maintenance L/C margin reconciliation
(
Local trade Documentations (Sim card Purchases Week 3 & 4
( Mr. Tahir Matloob (Manager Budget & cost control
I was assigned a project by my manager that was to reconcile the budget

.
of marketing department Budget review
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Budget Reconciliation Monthly and Annually Variance Analysis Week 5 ( Mr. Saim Ahmad (Asst. Manager Budget & cost control Whenever any new project is about to start the budget approval is necessary. So approval notes are issued to see weather the project would be beneficial for the organization or not. In budgeting and cost control
.
dept we have to evaluate the cases and give approval of budget Studied Business cases Evaluation Of cases Approval Recommendations Week 6 (Mr. Touqeer Zafar (planning and budgeting
In the last week of my internship my working was research based. I was assigned to prepare a complete report on forecasting and budgeting
.
techniques. Also I had to present my work Forcasting methods & Techniques
Prepared detailed project report on Forcasting & budgeting
Accomplishments
Finally, internships are an important part of the academic program, as they provide us with the practical experience during our academic career.
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I am very grateful that I received an internship at Warid Telecom as it was a great learning experience on how a multinational company works and
.further improved my skills of team working and critical decision making
New knowledge acquired

Trade Finance activities L/C Opening Preparation of Import documents Contract Management Budget Review Budget reconciliations Account maintenance Business case evaluation Decision Making Forcasting & Budgeting
How Experience impact your career

Finance in a Multi National company is best place to learn Finance basics and practices due to its dynamic nature. No doubt experience as an internee in Finance department of multinational cellular company like Warid Telecom would serve as step stone to better career in the field of
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accounting and Finance. Experience such as Trade finance activities, Letter of credit opening, budgeting, variance analysis, account maintenance, participating in Legal discussions and meeting with Professionals would be very helpful for my future assignments as a
.student as well as a Finance professional
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LIFE KA NETWORK
Financial Ratio & Analysis
Ratio Analysis
Description Operating Gross Profit margin Operating profit Margin Net Margin Performance Return on Assets Return on Equity Debtors Turnover Levarage Debt:Equity Leverage % % Times Ratio % 5.94 9.28 4.90 16:84 35.66 (2.06) (2.71) 5.35 15:85 27.92 % % % 36.30 18.15 15.45 43.70 24.67 (4.26) Year 2009 Year 2008
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Time interest Earned
Time
15.43
(5.26)
Liquidity Current Quick Valuation Mp to BP P/E Book value Dividend payout ratio Dividend yield Activity Raitio Average collection period Average payment period Total asset turnover ARPU Days Days US$p/m 24 425 38. 1.83 29 291 48. 2.5 Times Times Times Ratio Rs % Ratio 1.50 1.36 88. 9.63 19.49 83.6 8.7 1.81 1.58 2.01 (70) 19.19 -
Ratio Analysis
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. The ratios are categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset .Management Ratios, Profitability Ratios, and Market Value Ratios Ratio Analysis as a tool possesses several important features. The data, which are provided by financial statements, are readily available. The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm's financial performance with industry averages. In addition, ratios can be used in a form of trend analysis to identify areas where performance has .improved or deteriorated over time
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Because Ratio Analysis is based upon Accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as Historical Cost Accounting and inflation. Therefore, Ratio Analysis should only be used as a first step in financial analysis, to obtain a quick indication of a firm's .performance and to identify areas which need to be investigated further
Liquidity
Liquidity Position
The liquidity position of the company continues to suffer since a setback in FY08. This trend has been witnessed despite increasing current assets, as current liabilities grew more sharply. The short term borrowings of the company have been mounting for the last few years and this has contributed to the current trend of the current ratio. It may be noted that the company holds large amounts of cash and bank balances compared to the other companies in the business. This may provide an edge to the .company over its competitors
Current Ratio
2009 Current asset 1.50 = Current liabilities 2008
36,086,32254,220,241
36,086,32236,086,322 1.80 =
72
The current ratio is one of the most commonly cited financial ratios. Current ratio .measures the firms ability to meet its shirt term obligations Current ratio has shown a negative trend by 0.30.This is due to 164.68% increase in current liabilities and 136.91% increase in current assets. This shows that liquidity of WARID has decreased. . Standard for current ratio is generally 2 times. The more predictable a firms cash flow, the lower the acceptable current ratio. Because WARID is in a business with a relatively predictable annual cash flow, its current .ratio of 1.50 should be quiet acceptable
Quick Ratio
2009
2008
Current Assetsinventory Current liabilities Quick Ratio=
54,220,2415142843 36,086,32
39,603,406-4979351 21,913,959
1.58= 1.36=
The Quick (acid-test) ratio is similar to the current ratio except that it excludes
.inventory, which is generally the least liquid current asset
Quick ratio has shown a negative trend of 0.22 times. This is due to increase in current liabilities by 164.68% and 136.91 in current asset. Inventory value has also risen. This has caused the quick ratio to fall this year. A quick ratio of 1.0 ore greater is generally accepted, but as with current ratio, what value is acceptable depends on .the industry
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Although the liquidity stance of the company is fairly satisfactory at the moment, but .a continuation of the current negative trend may spell trouble for the company
Activity Ratio
Average collection period
2009 2008 1817435270547
Account Receivables Average Sales per day ACP=
1622983895152
24days=
29days=
ACP or average age of accounts receivable is useful in evaluating credit and collection policies. The average collection period is meaningful only in relation to
.firms credit terms .ACP has improved to 24 days in FY09 as compared to 29 days in FY08
Improvements in these areas have played a major role in WARID revival in FY09 after facing a loss in FY08
Average Payment Period

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2009
2008 7530621,913,959
APP Account Payable = Average Purchase per day
8490936,086,322
425days=
291days=
The average payment period or average age of payables is useful in evaluating that
.how much a firm uses its payables in its financing activities APP has shown a positive trend by 134 days in FY09. This is due to meaningful changes in .the payment procedures adopted by the finance section of WARID
Total Asset Turnover

2009 2008
TAT 154,048,07959,239,001 Revenue Total Assets 0.38=
13744785266336042 0.48=
Total asset turnover indicated the efficiency with which the firm uses its assets to
.generate sales
WARIDs turns over its assets 0.38 times in FY09 which is 0.10 times less than last year. This is due to increase in total asset by 112.08% and decrease in sales by
.10.7%
Generally the higher a firms total asset turnover, the more efficiently its assets have been utilized. This measure is used by the WARID management for keeping an eye
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on the operational activities of the company that how well its assets are being
.utilized
Debt
Debt Ratio
2009 2008
Total Liabilities Total Assets Debt Ratio=
154,048,079103058165
137,447,85291856400
66.90%=
62.83%=
The debt ratio measures the proportion of total assets financed by the firms creditor. The higher the ratio, the greater the amount of other peoples money being used to
.generate
profits
Debt ratio of WARID has shown a very positive trend in FY09. Debt ratio has almost
.increased
by 4.07%. This is due to increase in asset and decrease in liabilities
The value of 66.90% indicated that WARID has financed more than half of its assets
.with
the debt
Debt: Equity
2009 2008
Debt Equity
16:84
15:85
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Debt: Equity ratio is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of
.equity and debt the company is using to finance its assets
The debt equity ratio has shown that debt has increased and equity has decreased by 1 percent each. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings .as a result of the additional interest expense
Debtors Turnover
2009 2008 5.35
DT
4.90
Debtor's turnover ratio shows how long people normally take to pay a firm for purchases on average. This ratio is beneficial when more than one period is .calculated This ratio of WARID has shown a positive trend of 0.45 due to effective collection .policies
Leverage
2009 2008
Leverage 35.66% 27.48%
The higher the ratio the greater the firms degree of indebtedness and the more
.financial
leverage it has. It has increased by 8.18%
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Time Interest Earned
2009
2008
EBITInt erest TIE =
14,020,917 908679
15.43=
(4,462,616) 848406
(5.26)=
Times interest earned ratio, sometimes called the interest coverage ratio, measures the firms ability to make contractual payments. The higher its value the better able the firm is to fulfill its interest obligations. Time Interest Earned ratio has also increased to 15.43% in FY09 as compared to -5.26 in FY08. WARID has certainly shown a tremendous improvement in its ability to make contractual interest .payments
Profitability Ratio
Gross Profit Margin
2009 2008
Gross Profit Sales GPM=
59,239,00121,506,719
66,336,04228,989,173
36.30%=
43.70%=
The gross profit margin measure the percentage of each sales Rs remaining after
.the firm has paid for its goods. The higher the gross profit margin, the better
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We can see that gross profit margin of WARID has declined in FY09. This is mainly due to reduction in gross profit by 25.81%. This decrease is due to less revenue by
.10.7% and increase in cost of services by 1.03%
Operating Profit Margin

2009 2008
Operating Profit Sales OPM=
59,239,001 10,754,387 18.15%=
66,336,042 16,365,672 24.67%=
The operating profit margin measures the percentage of each sales Rs remaining after all costs and expenses other than interest, taxes and preferred stock dividend
.are deducted
We can clearly see that OPM of WARID is showing a negative trend. Although operating expenses that decreased by 14.82% OPM is still shown a decline of 6.52%. This is mainly due to reduction in gross profit by 25.81%. This decrease is
.due to less revenue by 10.7% and increase in cost of services by 1.03%
Net Profit Margin

2009 2008
Net Profit Sales
59,239,001 9,151,185 15.45%=
66,336,042 (2,824,890) (4.26%)=
79
The net profit margin measures the percentage of each sales Rs remaining after all costs and expenses including interests, taxes and preferred stock dividend, have
.been deducted. The higher the firms Net profit margin the better the firm is
WARID has made a remarkable effort in coming to state of profitability after facing
.severe losses in FY08. Increase of 19.71% speaks for itself
This is mainly due to positive increase in other operating income and changes in the
.% VSS which are almost reduction of 99
Earning Per Share

2009 2008
Earning available for 51,000,000 9,151,185 common stock holder Total outstanding common stock shares
51,000,000 (2,824,890) (0.55)=
1.79=
The firms EPS is generally of interest to present and potential stockholders and management. EPS represents the number of Rs earned during the period on behalf
.of each outstanding share of common stock .We can clearly see an incredible increase in EPS by 2.34PRS
Return on Total Assets

2009 2008
Earning available for common stock holder Total Assets
9,151,185 154,048,079
137,447,852 (2,824,890)
(2.06%) = 5.94%=
80
Return on total asset often called return on investment (ROI), measures the overall effectiveness of management in generating profits with its available assets. Higher .the firms return on total asset, the better it is .We can see that ROA has shown a significant increase of 8% in FY09 .This is mainly because of increase in Net profit by almost 423.95%
Return on Common Equity

2009 2008
Earning available for common stock holder Common Stock Equity ROE=
9861199,151,185
1042395(2,824,890)
9.28%=
(2.71%) =
The return on equity (ROE) measures the return earned on the common stockholders investment in the firm. Generally, the higher these returns, the better
.off are the owners .We can clearly notice the ROE has dramatically increased by 11.99%
.This is mainly because of increase in Net profit by almost 423.95%
Market
Market Price to Breakup Value
2009 2008
Market Value Book Value
19.4917.24
19.1938.64
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MP/BP= 0.88= 2.01=
The market/book ratio provides an assessment of how investor views the firms
.performance.
It relates the market value of the firms share to their book value
MPvBP has shown that investors faith on WARID has decline even though after having a great recovery WARID must continue in this trend. Investor are not ready to pay even the book value of the share, while in FY08 they were ready to pay 2.01 times more than book value and in FY09 they are ready to pay only 0.88 of the book
.value
Price/Earnings Ratio
2009 2008
MP EPS
17.24 (0.55)38.64 1.79
P/E= 9.63=
(70)=
The price/earnings (P/E) ratio is commonly used to assess the owners appraisal of share value. The P/E measures the amount that investors are willing to pay for each Rs of a firm earrings. The level of this ratio indicated the confidence that investor have in the firms future performance. The higher the P/E ratio the greater the
.investor
confidence
Book Value per Share
82
2009
2008
Common Stock Equity Number of Outstanding Shares bv=
986119000 51,000,0001042395000 51,000,000 19.19= 19.49=
We can clearly notice that BV has increased by 0.30%. This is due to increase in
.stock
holder equity in FY09 by 1.03%
Dividend
2009 2008
Dividend
1.50
--
In FY08 WARID faced the loss and no dividend were paid. In FY09 WARID posted a net profit of Rs 9.15 billion in FY09 against last year's net loss figure of Rs 2.83 .billion Overall Dividend declared was Rs 7650 billion. Although Rs 1.50 is not significant as compared to dividend offered by WARID in financial years before FY08 but keeping
.in view current trends in sector it is rational enough
Dividend Payout Ratio
83
2009
2008
Dividend per share EPS
1.79 1.50
--
DPR=
83.60%=
Dividend Payout Ratio shows percentage of earnings paid to shareholders in .dividends In FY08 WARID faced the loss and no dividend were paid. In FY09 WARID posted a net profit of Rs 9.15 billion in FY09 against last year's net loss figure of Rs 2.83 .billion
Dividend Yield
2009
2008
dividend per share MPS DY=
17.24 1.50 8.70=
--
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is
.the
return on investment for a stock
Last year WARID faced a loss and no dividend was paid and consequently no
.dividend
yield. In FY09 WARID showed a dividend yield of 8.70
84
Market Capitalization
2009 2008
MC (RS(m
87,924
197,064
Market capitalization/capitalization (often market cap) is a measurement of size of a business enterprise (corporation) equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and purchased by .investors) of a public company WARIDs Market capitalization is facing a downward trend which is very alarming for the management. This is due to the fall in the market price of WARIDs share in .FY09 Company size is a basic determinant of asset allocation and risk-return parameters for stocks and stock mutual funds. The term should not be confused with a company's "capitalization," which is a financial statement term that refers to the sum .of a company's shareholders' equity plus long-term debt
Average Revenue Per User (ARPU):P
Until recently, the mobile operators in Pakistan enjoyed handsome ARPUs; however, for the last couple of years especially after the global trend, the domestic ARPUs have been falling sharply. Today, the overall all telecom industry's ARPU stands at .2.48 US$ per month In 2008 Average revenue per user of Warid Telecom was 2.5 US$ p/m which is in .2009 decrease to 1.83. this also shows Decline in profitability of warid telecom
85
In trend analysis we done two types of analysis, these are
Horizontal Analysis .1 It is conducted by setting consecutive balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in individual categories .on a year-to-year or multiyear basis A comparison of statements over several years reveals direction, speed and extent of a trend(s). The horizontal financial statements analysis is done by restating .amount of each item or group of items as a percentage
Vertical Analysis .2 Like horizontal analysis this can also done for balance sheet and income statement. Here we assign 100% value to any key item of balance sheet or income .statement and then see portion of other items in this percentage
86
87
INCOME STATEMENT Horizontal analysis

We have taken FY08 as our base year for the horizontal analysis of WARID
2008 2009
Remar ks
( Rupees in thousand ) Revenue 66,336,042 100% 59,239,001 89.30% 101.03% (74.19%) (85.18%) (65.71%) 115.68% 414.19% Tax paid due to profit Worse Worse Worse Better Worse Better Better Worse
Cost of Services (37,346,869) Gross Profit 28,989,173
100% (37,732,282) 100% 21,506,719
Operating Expenses (12,623,501) Operating Profit 16,365,672
100% (10,7523,32) 100% 100% 100% No tax paid tax credit given due to loss 100% 100% 10,754,387 32,665,30 14,020,917 (4,869,732)
Other (20,828,288) Expenses/Income Profit/(loss) Before Tax Tax (4,462,616) 1,637,726
Profit/(loss) After Tax Earnings / (loss) per share basic and diluted
(2,824,890) (Rs.(0.55
9,151,185 Rs.1.79
423.95% 425.45%
Better Better
88
Income statement items and there trend in current year and their reason are :discussed as follows in detail
VERTICAL ANALYSIS
2008 2009 Rema rks
( Rupees in thousand ) Revenue 66,336,042 100% 59,239,001 100% 63.70% Worse 36.30% Worse 18.1% Better
Cost of Services (37,346,869) Gross Profit 28,989,173
56.3% (37,732,282) 43.7% 21,506,719
Operating Expenses (12,623,501) Operating Profit 16,365,672
19.0% (10,7523,32) 24.67% 31.4% 6.73% 2.47% 4.26% 10,754,387 32,665,30 14,020,917 (4,869,732) 9,151,185
18.2% Worse 5.51% 23.67% Better Better
Other (20,828,288) Expenses/Income Profit/(loss) Before Tax Tax Profit/(loss) After Tax (4,462,616) 1,637,726 (2,824,890)
8.22% Worse 15.45% Better
INTERPRETATION OF INCOME STATEMENT ITEMS REVENUE
89
The reason for decrease in revenue by 10.7% is because of decrease in domestic revenue. International revenue of WARID has increased while the domestic revenue of WARID has fallen due to competition and other economic conditions of the .country Revenue is exclusive of excise duty amounting to Rs 8,611,191 thousand (2008: Rs .(7,631,695 thousand International revenue represents revenue from foreign network operators for calls that originate outside Pakistan and it has been shown net of interconnect cost relating to the other operators and Access Promotion Charges aggregating to Rs. .(10,886,794 thousand (2008: Rs 7,758,176 thousand
COST OF SERVICES
Cost of services has shown an increase of 1.03% which is mainly due to increase in inflation rate causing the fuel and power prices to jump up and Foreign operators .cost and satellite charges have also shown a remarkable increase
OPERATING EXPENSES
ADMINISTRATION AND GENERAL EXPENSES Operating expenses have shown a decline in FY09 by 14.82% which is an significant improvement. This is mainly due to reduction is expenses like Salaries, allowances and other benefits , Repairs and maintenance, Printing and stationery, Travelling and conveyance, Technical services fee, Research and development and Other .expenses SELLING AND MARKETING EXPENSE In the decrease of Operating expenses selling and marketing expense has not .played any significant role rather these expenses have risen in FY09
OTHER EXPENSES AND INCOMES

OTHER OPERATING INCOME
90
Other operating income has shown an increase of 7.82% which has played as major .role in this FY09s net revenue
FINANCE COST
Finance cost of WARID has risen in FY09 by 7.14%. this rise in finance didnt brought any major change in the overall position because the reduction in charges .was the major cause of this year positive balances
TAXATION
We can clearly see WARID havent paid mostly tax in FY08 because of Declining .profits in that FY .But in FY09 WARID made a profit and had to pay the taxes
Balance Sheet
Horizontal analysis
2008 2009
Remar ks
( Rupees in thousand ) Equity and liabilities Share capital and reserves Authorized capital
91
11,100,000,00 A class 0 ordinary shares of Rs 10 each 3,900,000,000 B class ordinary shares of Rs 10 each Issued, subscribed and paid up capital
111,000,000
100%
111,000,000
100%
Same
39,000,000
100%
39,000,000
100%
Same
51,000,000
100%
51,000,000
100%
Same
Revenue reserves
Insurance reserve
1,683,074
100%
1,683,074
100%
Same
General reserve
30,500,000
100%
30,500,000
100%
Same
Un- appropriated profit
14,705,300
100%
16,206,485
110.21%
Better
Total
97,888,374
100%
99,389,559
101.53%
Better
Non-current liabilities
92
Payable to PTA against WLL license fee
100%
1,768,839
--
--
Better
Long term security deposits from customers non-interest bearing

951,618
100%
990,055
104.04%
worse
Deferred taxation
590,000
100%
2,379,000
403.22%
Worse
Employees retirement benefits
14,240,062
100%
14,142,099
99.31%
Better
Deferred government grants Total
95,000
100%
1,061,044
1116.89%
Worse
17,645,519
100%
18,572,198
105.25%
worse
Current liabilities Trade and other payables

21731667
100%
26,114,171
120.166%
Worse
93
Current portion of payable to PTA Taxation
--
100%
1,953,971
195397100%
Worse
182292
100%
368,180
201.97%
Worse
Total
21,913,959
100%
36,086,322
164.68%
Worse
Contingencies and commitments Total Liabilities and Owner s Equity

137,447,852
100%
154,048,079
112.08%
Worse
Assets
Non-current assets Property, plant and equipment Capital work inprogress Intangible assets Long term investments Long term loans 82,800,178 7,892,823 3,149,063 3,607,439 394,943 97,844,446 Current assets Stores and spares Trade debts
4,954,085
100% 100% 100% 100% 100% 100%
77,730,763 9,836,588 3,320,670 5,607,439 3,332,378 99,827,838
93.88% 124.63% 105.45% 155.44%

843.76% 102.03%
Worse Better Better Better Better Better
100% 100%
5,201,991
105.00%
80.51%
Better Worse
13,366,216
10,760,974
94
Loans and advances Accrued interest Recoverable from tax authorities Other Receivables Short term investments Cash and bank balances Total
888,309
100% 100% 100%
590,061
66.43% 260% 76.57%
Worse Better Worse
315,817 1,383,766
821,027 1,059,608
1,641,617
100% 100% 100% 100%
698,270
42.54% 203.18% 261.96 136.91%
Worse Better Better Better
10,344,379
21,017,790
4,545,145
11,906,448
39,603,406
54,220,241
Total Assets
137,447,852
100%
154,048,079
112.08%
95
VERTICAL ANALYSIS
2008 2009
( Rupees in thousand ) 11,100,000,000 A class ordinary shares of Rs 10 each 3,900,000,000 B class ordinary shares of Rs 10 each Issued, subscribed and paid up capital 111,000,000 100% 111,000,000 101.03% Worse
39,000,000
100%
39,000,000
(74.19%)
Better
51,000,000
52.10%
51,000,000
51.31%
Better
Revenue reserves Insurance reserve

1,683,074
1.72
1,683,074
1.69%
Better
General reserve
30,500,000
31.16%
30,500,000
30.69%
Better
Un-appropriated profit
14,705,300
15.02%
16,206,485
16.31%
Worse
96
Total
97,888,374
71.22%
99,389,559
64.52%
Better
Non-current liabilities
Payable to PTA against WLL license fee
1,768,839
10.02%
--
Better
Long term security deposits from customers non-interest bearing Deferred taxation
951,618
5.39%
990,055
5.33%
Better
590,000
3.34%
2,379,000
12.01%
Worse
Employees retirement benefits
14,240,062
80.70%
14,142,099
76.15%
Better
Deferred government grants Total
95,000
5.38%
1,061,044
5.71%
Worse
17,645,519
12.84%
18,572,198
12.06%
Better
Current liabilities Trade and other payables

21731667
99.17%
26,114,171
72.37%
Better
Current portion of payable to PTA against
--
1,953,971
5.41%
Worse
97
WLL license fee
Taxation
182292
0.83%
368,180
1.02%
Worse
Dividend payable
--
7,650,000
21.20%
Worse
Total
21,913,959
15.94%
36,086,322
24.43%
Worse
Contingencies and commitments
Total Liabilities and Owner s Equity
137,447,852
100%
154,048,079
100%
2008
2009
Assets
Non-current assets Property, plant and equipment Capital workin progress Intangible assets Long term investments Long term loans 82,800,178 7,892,823 3,149,063 3,607,439 394,943 84.62% 8.07% 3.22% 3.69% 0.40% 77,730,763 9,836,588 3,320,670 5,607,439 3,332,378 77.86% 9.85% 3.33% 5.62%
3.34%
Worse Better Better Better Better
98
97,844,446 Current assets Stores and spares Trade debts Loans and advances Accrued interest Recoverable from tax authorities Other Receivables Receivable from Government of Pakistan Short term investments Cash and bank balances
4,954,085
71.19%
99,827,838
64.80%
Worse
12.51% 33.75% 2.24% 0.80% 3.49%
5,201,991
9.60%
19.85% 1.09%
Worse Worse Worse Better Worse
13,366,216 888,309
10,760,974 590,061
315,817 1,383,766
821,027 1,059,608
1.51% 1.95%
1,641,617
4.15% 5.46%
698,270
1.29%
Worse Worse
2,164,072
2,164,072
4.00%
10,344,379
26.12% 11.48% 28.81%
21,017,790
38.76%
Better Better Better
4,545,145
11,906,448
22.00%
39,603,406
54,220,241
35.20%
Total Assets
137,447,852
100%
154,048,079
100%
99
Financial Analysis
Liquidity Position
The liquidity position of the company continues to suffer since a setback in FY08. This trend has been witnessed despite increasing current assets, as current liabilities grew more sharply. The short term borrowings of the company have been mounting for the last few years and this has contributed to the current trend of the current ratio. It may be noted that the company holds large amounts of cash and bank balances compared to the other companies in the business. This may provide an edge to the .company over its competitors Both current and quick ratios have shown a negative trend by 0.31 times and 0.22 respectively. Standard for current ratio and quick ratio is is generally 2 times and 1 .times respectively Although the liquidity stance of the company is fairly satisfactory at the moment, but .a continuation of the current negative trend may spell trouble for the company
Profitability Position
WARID posted a net profit of Rs 9.15 billion in FY09 against last year's net loss figure of Rs 2.83 billion. Earnings per share have also increased to Rs 1.79 from (0.55). WARID has recovered from the state of loss although the overall telecom
100
sector consumer base is showing a declining effect. It is mainly due to effective .marketing strategies adopted by the company Although WARID maintained its market share in the fixed line, there was a decrease .in revenues by 10.7% mainly due to substitution impact of mobile expansion With increase in profit, the WARID also managed to increase its net cash flows to Rs 16.81 billion compared to last year decrease in net cash flows of Rs 16.24 billion which is a significant recovery of almost double. Considering the cash requirements for restructuring and development plan, the company declared a final dividend of Rs 1.50 per share for the financial year ended June 30, 2009. The total revenue for FY 2008-09 stood at Rs 59.24 billion against Rs 66.34 billion of FY 2006-07. The decrease in revenue was mainly in the domestic segment due to competition and reduction in tariffs. However, WARID is making all efforts to boost revenue by .improving customer service and launching new services to turn around the situation
Leverage Position
The debt equity ratio has shown that debt has increased and equity has decreased by 1 .percent each The debt ratios showed an increasing trend in the FY09. The debt to asset ratio of the company had declined considerably in FY07 and FY08, increasing again in FY09 by almost 30% from 27.48% in FY08 to 35.66% inFY09. It is important to note that the company maintains a largely unleveraged capital structure, with the current trend in debt ratios bought .about largely by changes in current liabilities of the company This was brought about mostly due to increase in current liabilities of the company in FY09. The absence of the dividends payable portion of current liabilities in FY08 and its coming .back online in FY09 was an important contributor to the trend Time Interest Earned ratio has also increased to 15.43% in FY09 as compared to -5.26 in FY08. The higher the value the better the firm is able to fulfill its obligation related to interest payable. WARID has certainly shown a tremendous improvement in its ability to make .contractual interest payments
101
Activity Position
Inventory turnover is improved. And if take a glance of other activity ratios we come to find that Average Collection Period and Average Payment Period have also shown a very positive trend for WARID in FY09 as compared to FY08. ACP has improved to 24 days in FY09 as compared to 29 days in FY08. Similarly APP .has shown a positive trend by 134 days in FY09 Improvements in these areas have played a major role in WARID revival in FY09 .after facing a loss in FY08
RETURN ON OPERATING ASSETS

After facing a negative return in FY08, WARID has made a splendid effort to utilized its assets effectively to generate positive outcome. This has only been possible due to the efficient and effective Capital Management Policies. But on a whole if we make an analysis with the help to the diagram we can clearly see that return is .decreasing gradually, which is very alarming for the organization WARID should make major changes in its capital management structure and there is .a lot of space for improvement
Market Value vs. Break up Value

Market value of WARID was at peak in FY06.But in FY07 is fall down significantly.. We can clearly see in FY07 the market value of WARID share is facing a downward trend. This is mainly due to profitability of the organization and the amount of .dividend paid
102
LIFE KA NETWORK
103
THEORIES IMPLEMENTATION
SWOT ANALYSIS
104
SWOT analysis is specifically the study of Strength Weaknesses Opportunities and Threats, out of which Strength and Weaknesses are internal factors whereas Opportunities and Threats .are external factors The SWOT analysis conducted for this assignment is of the new emerging Telecom Company named as Warid Telecom. Warid Telecom launched in Pakistan on 23rd May 2005 but its pre launch operations started working six months before the Launch this shows the planning masters took enough time studying Pakistans Market and is well equipped to serve .in the field of service based cellular industries in Pakistan :Strengths .Compatible Prices Variety of tariff plans Best Vendor Selected Customer Focused Services Experienced higher Management
105
Easy access to customers Working on staff development strategies Higher Pay structures (VAS ( Value added services, including extra features Effective marketing strategy :Weaknesses (Network issues (signals fluctuation problem (Coverage Issues (city coverage is a big issue Delayed activities Difficult to convert the customer of the other companies user :Opportunities A developing market Mergers, joint ventures or strategic alliances Could develop new products Decline of major competitors Technologically better environment New launches Expansion of network coverage area Better Marketing Promotions Needs to develop competitive edges :Employee Recognitions programs :Threats Emerging companies in market Unstable political conditions New companies in market High public expectations Low prices of competing brands
106
LIFE KA NETWORK
Conclusion and Recommendations
107
Conclusion And Recommendations
The mobile industry has seen phenomenal growth over the year. This growth is not new to the industry, as previous years have shown substantial growth as well. This growth is a direct result of the increased competition in the mobile industry, resulting into better services at reduced rate. Furthermore, this has favorably affected our economy as a whole, generating revenues for the government, through direct and indirect taxation and creating employment opportunities for the people. The mobile industry of Pakistan is considered by a majority of prospective
.employees as the best industry for a job
Although the mobile industry has seen substantial growth over the years, many observers feel that the industry may become saturated and will show lower growth rates as a result of increased taxation and the general economic conditions of Pakistan. Although the concerns may be valid to some extent, but with PTA, introducing the 3G platform in the coming years and a major part of our population still without mobile connectivity, especially in distant villages, there is still optimism that the mobile industry will not become saturated and there is still place for competition
.in the industry
Few years back Telecom sector was on its boom but now as there are 5 operators in the market its hard to survive. The industry is going down now all the networks are trying to maintain there position not going for any sort of expansion. With some improvement at higher level including advisor to CEO, much has improved this year in Warid Telecom market rating. Still Its not so promising. Warid Telecom has potential to capture good market and to give tough time to the competitors. According to the
108
financial conditions of Warid they should try to maintain there position in the market and bring innovative ideas to attract the customers. But to do so they have to take following steps to overcome there weaknesses and avail new opportunities to Gain greater market share and high industrial
.growth
Recommendations
Warid is offering cheap rates for prepaid and postpaid customers as compared to its customers but the main area they are lacking is the
.way they communicate to the customers .Extra ordinary costs should be reduced .Proper budget should be allocated for each departments
Focus on International Trade

.Network should be enhanced to more cities
There should be consistency in Brand ambassadors, colors, graphics

.in there print and electronic adds to create strong brand recognition
More regional departmentalization should be there, so as to create

.strong presence in and market analysis at regional level
More staff should be hired in some departments specially in Finance

.and HR to meet the requirements Internship Report : Warid Telecom
109
There should be more decentralization and the employees should be

.encouraged for there ideas
Compensation and benefit plans should be revised, as it can be

.used as a very important tool for employee motivation
Appendex
110
Internship Completion certificate Letter Of Authorization Copy of annual financial statements

Balance Sheet Income Statement Cash Flow statement Statement of changes in equity
FINANCIAL STATEMENTS
111
112
113
114
115
116
BIBLIOGRAPHY
Web Resources
Companys website- www.waridtel.com Magazine Business Economy Google.com Economic Survey of Pakistan Businessrecorder.com Security and Exchange Commission of Pakistan Yahoofinance.com
Reports
PTA Reports
Books
Managerial Finance by Lawrence Gitman
Articles
Dawn Newspaper Daily Times Newspaper Business recorder Newspaper Flare Magazine
117
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SUBMITTED TO

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HAILEY COLLEGE OF COMMERCE) BY

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Wajeeh-ur-Rehman 8th Semester

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

ORGINAZATIONAL STRUCTURE & STRATEGY.1

Internship Report : Warid Telecom

Internship Report : Warid Telecom

INTRODUCTION & BACKGROUND

HISTORY OF THE BUSINESS

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Abu Dhabi Group

Internship Report : Warid Telecom

:AD Group consists of

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Old Look New Look

Organizational structure & Strategy

Internship Report : Warid Telecom

Message from the Chairmen

Internship Report : Warid Telecom

Mr. Lim chuan poh

Internship Report : Warid Telecom

Mr. Quah kung yang

Internship Report : Warid Telecom

Mr. Shahzad Rauf

Internship Report : Warid Telecom

industry. He also have over 10 year experience of finance and information

Mr. Muhammad Irfan Chaudhry

Before joining Warid Telecom, he has worked with Ericsson, Cingular

Internship Report : Warid Telecom

MCB Credit Cards

Internship Report : Warid Telecom

(Organization Structure (Organization chart

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Financial Accounting Division

Fixed Assets Section

Accounts Payable Section

General Ledger Section

Treasury Control Section

Internship Report : Warid Telecom

Warid in Telecom Market

Internship Report : Warid Telecom

Market Overview Of Mobile Companies in Pakistan

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Internship Report : Warid Telecom

Voice based Services

Text Based Services

Internship Report : Warid Telecom