Presentation on LESCO

7/30/2019 Presentation on LESCO

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LAHORE ELECTRIC SUPPLY

COMPANY

MUHAMMAD NOMAN KHAN

MC080405183

MASTER OF BUSINESS

ADMINISTRATION

MBA FINANCE



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LAHORE ELECTRIC SUPPLY

COMPANY

INTERNSHIP REPORT ONLAHORE ELECTRIC SUPPLY

COMPANY



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Brief introduction of the

organization

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Overview of the organization

LESCO stands for Lahore Electric Supply company.

LESCO is an electricity distribution company.LESCO provides electricity to the peoples.

Business volume

Public Limited CompanyAuthorized Share Capital is 5,000,000,000

Paid up Share Capital is 5000 ordinary share of 10

each.

Total consumer are 2814399 with increasing rate 6.7



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Cont….


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Competitors of the organization

LESCO is a Monopolistic Organization

There is no Competitors in Lahore Region

Reasons of Monopoly

1: New Entrance is restricted

2: High initial fixed Cost



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Organization Hierarchy

Chart


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Hierarchy of Organization Structure



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Training Program


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Name of Department in which I got

Training

1: MDI Department 01-05-2010 To 15-05-2010

2: Accounts Department 15-05-2010 To 31-05-2010

3: Admin Department 01-06-2010 To 15-06-2010

4: Finance Department 15-06-2010 To 30-06-2010

Departments Duration



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Detail Description of the Tasks Which

are performed in different department

MDI Department“MDI is a Department in which industrial bills are

Prepare and calculated”

1: Preparation of MR list

2: Checking of Readings and Units

Following are the Task which are performed in MDIDepartment

Training Program

Cont…



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3: Sending the MR list to WCC

4: Calculation of MDI Bills

5: Providing the Customer Services

6: Making the MDI Payment List

7: Issued MCO

8: Issued RCO

9: Issued ERO

10: Filling different CP’s like CP 137, CP 138 and CP52

Training Program

Cont…



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Training Program

Cont…

Accounts Department

Following are the Task which are performed in

Accounts Department


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•Making the cash book summary

•Making the stock summary

•Making last paid summary

•Making the debit and credit summary

•Making the pay roll summary

•Posting the entries in the ledger

•Posting the entries in trial balance etc



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Preparation of Ledger and

Trail BalanceL AH ORE E L E C T RI C

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Training Program

Cont…

After preparing the summaries of each all the entries

are putt in to ledger.

Ledger is a statement in which initially entry is post.

After posting the entry in the ledger trial balance is

prepared.

Trial balance shows the all accounts separately.



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Annual Accounts

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Training Program

Cont…

Annual accounts are prepared in the end of

accounting period.

An annual account includes final accounts.

This includes income statement or profit and loss

accounts and balance sheet.



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Admin Department

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Training Program

Cont…

Preparation of Service Book of employees

Maintain the record of employees

Maintaining the attendance register

Maintaining the leave register

Responsible of negligence behavior of employees



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Department Hierarchy

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Structure of Finance

Department

Finance Director

1:Finance

Manager

(CA) 3:DeputyManager

Accounts

H/Q

4:DeputyManager

Accounts

(F.F)

2:Manager

Finance (CP & C)

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Finance Operations

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Department

Finance manager is responsible of all operation

in the finance department.

Finance mangers allocate the annual budget on

the basis of activity for example

Area,

No of consumers.

No of transformers etc.



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Accounting Operations

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Department

Deputy Manager Finance is responsible all

accounting operation of finance department.

He control the all accounting policies of accounts

in LESCO head office.

1: Preparing annual accounts

2: Preparing balance sheet

3: Preparing profit and loss

account or income statement

4: Preparing Cash Flow statement etc

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Accounting System of the

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Functions of Finance

Department

Initially LESCO Accounting system was

maintained on manual basis.

Now a days LESCO maintain its accounts on

ERP System or ERP Software.

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Finance System of the

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Functions of Finance

Department

Finance system of the LESCO is maintainedand controlled by Finance Directorate.

Which have sub ordinate finance manger

(corporate accounting) and Finance Manger

(CP&C).

There are two deputy mangers which controls

the work of accounts officers

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Source of Funds

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Functions of FinanceDepartment

LESCO is Government based Company and it is

maintained and controlled by Government of Pakistan.

LESCO takes funds from NEPRA.

In the beginning Wapda provides the fund to all

the distribution companies. But now a days

NEPRA provides to the LESCO.

F ti f Fi



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Allocation of Funds

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Functions of FinanceDepartment

LESCO have 7 circle, 33 Divisions and 160 sub

divisions.

Finance manger allocates the fund according to

the needs of every circle, Division and sub

divisions. Funds all pass on annual basis but

distributes in parts according to the needs of the

departments.

1: Funds for salaries of employees

2: Funds for TA/DA

3: Funds for office expenditures etc



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Critical Analysis

Profit & loss Account

YEAR ENDING June 30, 2009 June 30, 2008 June 30, 2007 June 30, 2006

M. Rs. M. Rs. M. Rs. M. Rs.

REVENUE

Energy Sales 90,006 68,277 63,314 55,381

Rental of meters

and equipment 460396 255 362

Revenue from

Electricity 90,46668,673 63,569 55,742

Amortization of

Deferred income 486449 384 318

TOTALREVENUE 90 952

69,122 63,953 56,061



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Profit & loss Accountcont..

OPERATING COST

Cost of Electricity 82,197 72,449 56,688 50,369

Other operating cost

excluding depreciation10,304

7,270 6,622 5,884

Depreciation on

operating fixed assets 1,1651,034 897 803

TOTAL OPERATING

COSTS 93,66680,754 64,207 57,056

Operating Loss/Profit (2,713) (11,632) (253) (996)

Other Income 2,819 1,989 1,729 1,436

Profit/(Loss) before

interests & Tax105

(9,643) 1,476 441



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Less Financial Charges257

1,377 404 342

Less Worker's Profit

Participation Fund-

- - -

Less Provision for taxation-

- 111 -

Profit /(Loss) for the year(151)

(11,020) 960 98

Unappropriated Profit / (Loss)

brought forward(8,461)

2,559 1,598 1,500

Available for application (8,612) (8,461) 2,559 1,598

Profit & loss Accountcont..

Documents

Presentation on LESCO