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1. Introduction of Pakistan Television
1.1 Introduction
Pakistan entered into Television Broadcasting era with a small pilot TV Station established at Lahore from where
transmission was first beamed in Black & White with consequence from 26 November 1964. Television centers were
established in Karachi and Rawalpindi/Islamabad in 1967 and in Peshawar and Quetta in 1974.
While introducing the sophisticated branch of the electronic media in the country, the extensive viewpoint kept in
mind was to inform and educate the people through nutritious entertainment and to inculcate in them a greater
consciousness of their own history, tradition, recent harms and expansion as well as knowledge of the world at
large.
When PTV came into existence in 1964, there was a staff of 30 workers, which has now risen to more than 6000
persons at all Units of the Corporation. The employees of PTV are separated into 09 groups and every group has a
separate pay scale.
PTV, the national broadcasting corporation had been in horrible straits and constantly declining for many years.
Losses had been incurred, income from all spheres was restricted, viewer ship had reduced and the overall morale of
the institution was in shambles.
The conscientiousness of PTV and continued efforts has resulted in enhanced and imaginative programming with
significant changes in presentation style. The promotion of programmes has been totally been revamped in lieu of
improved re-packaging and tailor made programming along with thrilled marketing strategy.PTVs attempt for
initiative has surfaced with a number of milestones of particular significance. Deserving special mention here are
the daily programs of Tilawat & Tarjuma of the Holy Quran; programmes highlighting the cause of Kashmir.
PTV World, a new satellite channel was launched in the face of tough international competition. The purpose of
providing a homely atmosphere to family viewers has been well achieved. The audience driven programmes have
given PTV a new look and dramatically changed the views about Ptv. PTV has surged ahead of its competitors and
as such PTV-2 has been turned into a viable project. Generation of more than Rs 56 million within a span of five
months of the implementation of the new idea speaks of this unparalleled achievement.
Technical improvement of PTV is evident from the change in screen presentation. The public has greatly appreciated
this cosmetic transformation not only in programmes but also in News & Current Affairs. Recent usage of Computer
Technology to facilitate the generation of virtual sets is a significant landmark in the history of PTV.
On the other hand active participatory programmers have supplemented the authenticity of Current Affairs
programmers and generated a lot of public interest. Live Open Forum; PTV has taken a lead over its contemporaries
by introducing Audio-Text and Tele-text services in the region. The live cricket and hockey quizzes and the recently
held PTV Awards are few examples of mass public participation through Audio text. Availability of on-line Flight
Information, live surge and fall of
stock exchanges, news updates etc. on normal home TV sets are few references of Teletext application
1.2 History
Pakistan Television Corporation Limited (PTV) is a public limited company. All its shares are held by Government
of Pakistan. The decision to establish a general purpose television service with the participation of private capital
and under the general supervision of the Government of Pakistan (GOP) was taken in October 1963. Subsequently
the GOP signed an agreement with Nippon Electronic Company of Japan, allowing it to operate two pilot stations in
Pakistan. The first of these stations went on air in Lahore on 26 November 1964. On the completion of the
experimental phase, a private limited company, called Television Promoters Limited was set up in 1965, which was
converted into a public limited company in 1967. Television centers were established in Karachi and
Rawalpindi/Islamabad in 1967 and in Peshawar and Quetta in 1974. PTV satellite transmit ion is round the clock.
The transmission includes ETV and PTV world transmission.
The Karachi Centre: Commenced transmission on November 2,1967 and was first full-fledged station housed in its own
building fully and equipped with better technical extensive equipment for production by electronic methods it four
main color studios including one designed and equipped for News.
The professional quality of its varied programmed fare, be it music has been of a top standard. The PTV-Karachi
Centre along with four Re-broadcast Stations at Thana Bola Khan, Shikarpur, Noorpur and Thando Allahyar, other
RBSs in the country through Microwave link cover about 90% of the population. With the opening of PTV World,
Pakistani programmes are now being viewed in other parts of the world via satellite.
PTV Lahore: pilot center started in collaboration with N.H.K. Company in a very small studio known as Studio 'C'
(with three Cameras, one Tape recorder, one 35mm Telecine, one 16mm Telecine and one Opaque Projector.) Studio
'C' was situated inside the Pakistan Broadcasting Corporation, Lahore area, was started on 26-"-1964.
PTV Lahore, pilot center started in collaboration with N.H.K. Company in a very small studio known as Studio 'C'
(with three Cameras, one Tape recorder, one 35mm Telecine, one 16mm Telecine and one Opaque Projector.) Studio
'C' was situated inside the Pakistan Broadcasting Corporation, Lahore area, was started on 26-"-1964 six days in a
week (Monday off-day) in black & white with a very limited staff. At that time, all Studio programmes were telecast
"LIVE" as no VTR Recording machines were available, which were made available in the year 1968.
A Pilot TV Centre was formally inaugurated on December 5, 1974 at 2-Fort Road, Peshawar. It was Black & White
Production/Transmitting Centre consisting of Recording Studio and a Booth for News/Announcement.
On February 18, 1982 Main Color TV Centre was inaugurated at 58Shahrah-e-Quaid-e-Azain with Two Production Studios, One
Announcement / News Studio, an Outdoor Broadcast Van & 07 Nos. of portable outdoor recording units for News/Current Affairs and
Programmes.
PTV Quetta: I t was established during 1974 in the abandoned Masonic Lodge, Quetta Cantt and was formally inaugurated on 26th
November, 1974 (26th November, on the 10th opening anniversary of PTV in Pakistan, as the first PTV Centre was established in
Lahore on 26th November, 1964 and later on too, most of the Centers were established on 26th November)
1.3 Nature of Organization
Pakistan television cooperation is purely service organization. It is engaged in providing wholesome entertainment for its viewers and
inculcates awareness of the rich culture, heritage and current social& economical problems of the country.
It is also engaged in commercial advertising and has also been authorized by government of Pakistan to collect TV, VCR, and TBRSA
license fees.
It produces and telecast various programme to inform and educate viewers through four-terrestrial and satellite channel named as,
PTV world
Prime TV
Channel 3
National TV
2. MISSION, VISION
AND
OBJECTIVE OF ORGANIZATION
2.1 Mission
PTV is a family entertainment channel
To educate
To Enlighten
To inform about the current affairs to the public of Pakistan.
To ensure that diverse local voices have access to the media.
2.2 Vision
To maintain quality, provide authentic information to the general public and promoting the cultural values
2.3 Objectives
Provide alternate family viewing to the audience in Pakistan in general and abroad in particular.
Introducing audience-driven programs and entertainment programs.
Look for business frontiers around the international markets.
Be ahead of competitors.
To help support Efforts to eradicate illiteracy by televising programs on adult functional literacy.
Non-formal educational specifically in social sectors.
Distant education specifically produces programs of AIOU (Allama Iqbal Open University).
Support to development programs and projects of federal and provincial governments.
“Backup programs” for science curricula in schools, colleges, and universities.
Education on agriculture.
Support to population welfare.
3. ORGANIZATIONAL STRUCTURE
The organizational structure of PTV allows the formal system and coordination that links the tasks of the individuals and groups in a
very flexible manner, to achieve the common organizational goals.
Secretary Ministry Of Information and Broadcasting is the chairman of Pakistan Television board of directors
A Board of Directors appointed by the Government of Pakistan manages its affairs. The Managing Director of the Corporation, duly
appointed by the Government of Pakistan and approved by the Board of Directors, is the Administrative and Executive Head of the
Corporation. He is the competent authority to implement rules for the Corporation and its employees.
Ministry Of Information and Broadcasting
Permanent members of Board of Directors include,
Managing Director PTV
Ad. Sec (Ad) Foreign Affairs
Ad. Sec (Budget)
Director General PBC
DG ISPR
VC AIOU
Javed Hassan Aly
Full time Directors include,
Director Current Affairs
Director News
Director Finance
Director Training Academy
Director International Relations
Director PTV National
Director PTV Global
Director Admin and Personal
Director Programmers
Director Engineering (Project)
Director Engineering (Operations & Maintenance)
Director DTH
Director Marketing
Director Marketing Strategy & Planning
Director Special Assignment
the General Managers are the Administrative and Executive Head of TV Centers.
GM, PTV Karachi
GM, PTV Lahore
GM, PTV News
GM, PTV Home / ETV
GM, PTV Academy
GM, PTV Peshawar
GM, PTV Quetta
GM, PTV National
The Controller Information Technology is the Administrative and Executive Head of Information Technology Division.
4-Departments and Their Functions
4.1 Administration & Personnel
Administration
Responsible for formulation and implementation of administrative policies, co-ordination with other Centers, overseeing
administrative services, formulation of PTV Employees Service Rules and amendment in the Rules, as and when required,
implementation of directives received from the Government, to arrange centrally insurance of all PTV assets/properties and
realization of Insurance Claims in case of loss/damage caused to PTV assets/properties, to deal with legal matters instituted for and
against PTV in various courts of Pakistan and to deal with PTV Unions.
Personnel
Responsible to perform the personnel functions, which fall into two categories:
i) Operative:
The operational function of Personnel Department includes the activities specifically concerned with procuring, developing, utilizing
and maintaining efficient work force.
ii) Managerial :
The Managerial function of Personnel Department pertains to the activities concerned with planning, organizing, staffing and
directing the work of those who perform the operative functions.
The broad functions of Personnel Department are formulation and implementation of personnel policies, over-seeing personnel
functions all over the Corporation, manpower planning including recruitment, promotion and transfer etc.
Training & Delegation :
Responsible for training of Staff within the country and abroad, dealing with the delegations, responsible for deputing officials for
Seminars, workshops Symposia, Conferences, Meetings, Exhibitions, Competitions, Advisory Missions to Foreign Agencies to make
arrangement for PTV Coverage Teams deputed for VVIP coverage abroad.
Council Business:
Training & Delegation Department is also responsible to deal with the Council Business (Senate / National Assembly).
Security:
Responsible for maintaining security of men and material of entire TV Network according to the prescribed procedure as laid down
by the KPID (Key Point Inspection Directorate) of the Government of Pakistan.
4.2 Finance
PTV is a public limited company with an authorized capital of Rs. 3.000 billion. The Government holds entire paid up share capital
of Rs.1529.300 million.
4.3 Programmes
In fulfillment of its broad and main objectives, PTV's telecast policy concerning various matters of National and International
interests. It has always been motivated and guided by the cardinal principles of educating viewers about the values that are vitally
important in building a united, integrated and disciplined society in the light of Islamic injunctions. These objectives have
successfully been achieved through a variety of programmes at religion, at education, at entertainment and at culture etc.
The projection of new emerging social order is highlighted in PTV's general programming focusing directly and indirectly on the
themes like morality, civic or national responsibilities, drive against narcotics, environmental pollution, agricultural reforms in
discussions, shows, and through anchorpersons in the transmission.
PTV has started programmes AL-QURAN AL-HAKEEM one hour of Tilawat and Tarjuma by renowned Qaris. It is being telecast
daily at 6.00 a.m. The text of the Aayat is shown on screen. This helps the viewers in reading and listening so that they can read the
Qura'an correctly.
4.4 News
Pakistan Television News informs its viewers across the country on the latest newsworthy happenings on the national and
international levels. During the past few years, there has been rapid expansion in the area and scope of news coverage. Enhancement
in the number of bulletins has enabled PTV to keep the viewers abreast of the latest happenings at the National and Internationa
level.
Emphasis is now being given to on-camera reporting and special news reports on subjects of popular interest. Moreover, there has
been a qualitative change in the news reporting as well as presentation of news bulletins from National News Bureau, Islamabad and
from other centres. Merit and objectivity are being maintained as a hallmark of PTV news items which extends to routine day-to-day
coverage and to the parliamentary proceedings, political activities of the government and opposition, besides human interest stories.
PTV news broadcasts stretch over from early morning till midnight. There are two Urdu language bulletins in the morning
transmission. In the evening/night transmission, there are four short duration Urdu language bulletins, one Kashmiri language
bulletins and one Arabic language news bulletins Al-Akbar and 6 O'clock English News and 9 O'clock Urdu language main bulletin
khabarnama. All the news bulletins after 6.00 p.m. are being aired on the national network which is also beamed through satellite to
more than 38 countries.
Regional language bulletin in Punjabi from Lahore, Sindhi from Karachi, Pushto and Hindko from Peshawar and Baluchi, Brahvi
and Pushto are telecast from centres to enable people of the areas to see and listen to PTV news bulletins in their own language.
To bring home maximum coverage of international events, PTV news has made arrangements with Reuters TV, London, a world-
leading network, to satellite news items to PTV Islamabad round the clock. PTV news covers all visits abroad of VVIPs,
international conferences and important other events through its own camera teams and makes all possible efforts to air them same
night. At a number of occasions in the past, PTV news has proved to be ahead of the leading networks of the world in airing
important events i.e...
PTV News has been making continuous efforts to project right of self-determination of the people of occupied Kashmir and
countering Indian propaganda about the fate of our Kashmiri brethren. PTV visualized the brutalities of Indian forces on the
oppressed people of Kashmir. PTV telecasts the voice cast interviews of Kashmiri leaders, across the Line of control to project
inhuman treatment given to the Muslims in the Indian held Kashmir. PTV news has its permanent news bureau at Muzaffarabad,
Azad Kashmir, to cover various events including visiting foreign journalists and foreign delegations that witness the plight of
Kashmiri refugees who were forced to leave their home. Like international networks, PTV news also sent its camera team to
Afghanistan to cover the war between different groups and plight of the common man there.
With the advancement of the Computer Technology, PTV news is also in the process of computerization to receive and telecast news
items by computer. Computer Graphics are being used in all news bulletins.
4.5 Current Affairs
Current Affairs programmes have been regular features of PTV Transmission, ever-since its inception. A separate PTV Current
Affairs Directorate was however, established in 1982.
Current Affairs programmes, including regional languages, produced by each of the TV Centre are accommodated in regular PTV
transmission. The themes of Regional Language programmes mainly revolve around local and provincial matters of current affairs
nature. Current Affairs Division also produces programmes on special occasions such as live telecast of Armed Forces Parade on
Pakistan Day, Flag Hoisting ceremony on Independence Day, Head of State's Address to the Nation, Documentaries on important
national projects, certain sessions of Senate and National Assembly. In the programme Open Forum, Federal Ministers/Minister of
States is invited to answer the questions through e-mail, on Telephone and by Media/Experts sitting in the various studios of PTV.
This programme is live and is very popular amongst viewers.
4.6 Sports
PTV Sports Division was created in 1983 to provide healthy entertainment to our viewers. It has emerged as an extremely productive
and earning division of PTV.
The chief objectives of this division are to arrange healthy sports entertainment through the coverage of exciting moments and
happening in the field of sports and to keep the viewers informed with the National and International sports event.
Presently Sports Division is producing regular weekly transmission on PTV apart from occasional International / National sports
coverage. PTV also televises live national and international sports around the world, keeping in view the interest of Pakistani
viewers.
4.7 International Relations
The major responsibility of I.R. Division is to promote friendly relations with international TV Networks/Organizations to enhance
know-how in the field of electronic media. I R Division participate in the International Television Festivals/Competitions held in
different countries by sending best PTV-Programmes. Thus PTV has won distinguished prizes and commendations.
A large number of programmes have been sold to telecast in different counties which resulted strength of the financial condition of
PTV and more efforts are being made to increase the sale of PTV-Programmes. M/s Shalimar Recording and Broadcasting Company
and M/s Sports Star International are the major distributor of PTV programmes.
A lot of PTV plays and documentaries have been provided to foreign countries through Ministries and our missions abroad on gratis
basis for the projection of Pakistan and its people which have been liked by them and later on they have purchased several selected
PTV programmes.
Dubbing and editing is carrying out by I.R.Division. Some selected programmes are sub-titled in English and Arabic Languages for
overseas projection especially for Muslim countries. Documentaries of National Geographic are being televised with Urdu dubbing.
A series of animated imported programme "Treasure Island "is being dubbed in Urdu language for telecast. PTV has recently
provided the satellite facilities to foreign agencies with regard to nuclear tests and earned approx.US$:0.4 millions.
Co-productions with foreign TV organization are conducted on bilateral basis to strengthen relations with each other. Necessary
arrangements are made through Ministry of Information & Media Development and Foreign Affairs.
In order to fill airtime beyond PTV's production capacity at roughly 1/8th of the cost of local programmes and as an essential
window to the cultures of the world through information, education and entertainment. PTV has procured foreign canned
programmes on hire/rental basis to suite its genius. PTV procures foreign programmes including feature films, cartoons, science
fiction, comedy, adventure, classic drama serials/series and general programmes. Foreign programmes from a major part of
educational transmission and has been of immense value for school/college going students as well as general public.
A PTV Editorial Board comprising six Directors headed by the Managing Director evaluates publicity material and viewing samples
provided by the international distribution agencies. After the normal procedural formalities, programmes thus selected are acquired
against the payment of approved rental fee normally for one transmission.
4.8 PTV Film Censor Board:
PTV Censor Board was formed in 1968 headed by Director Programmes Administration. It was separately instituted within PTV on
the approval of Secretary Ministry of I&MD in December 1980 to clear and certify bulk of imported and locally acquired
programmes with speed and efficiency. Consultant News/Current Affairs/Presentation presently heads the Board.
4.9 Ptv/Stn Censor Board for Commercials:
There is another joint PTV/STN Censor Board for Commercials constituted by the Ministry of I&MD functioning at PTV HQrs
since June 1990 which examines and certifies all advertisement material for telecast both from PTV & STN .There are four sub-
Censor Boards for Commercials functioning at Karachi/Lahore/Peshawar and Quetta. The meeting/censor sessions are held twice a
week with exception of censor shows of NTM's classified material required to be held in emergencies.
4.10 Engineering
The Engineering Division takes care of the day to day operations and maintenance of PTV Centres and Rebroadcast
Stations, new projects, Planning & Procurement, as well as research and Development activities.
PTV started its services on 26 November 1964 with two small stations at Lahore and Dhaka (Former East Pakistan). Over the years
the system has grown into a countrywide network offering two programmes channels.
• 1964 Television Service In Monochrome Started.
• 1967 Two Production Studios Added At Rawalpindi & Karachi.
• 1973 National Microwave Network Commissioned Linking TV Centres.
• 1974 Quetta/Peshawar Centres Commissioned.
• 1976 Color Transmission Started.
• 1987 Federal TV Centre At Islamabad Commissioned.
• 1992 Second TV Channel for Education Commissioned. (One TV Station at Islamabad. & 16 Rebroadcast Stations).
• 1996 Local Area Transmission from Four (4) Stations Started and Extended To 03 More Stations.
• 1998 Transmission Of PTV World Programmes Started.
• 1998 Up to 06 Production Centres (Lahore, Karachi, Quetta, Peshawar, Islamabad-I & Islamabad-Ii). 35 Rebroadcast Stations in
Operation for Ptv-1. 16 Rebroadcast Stations in Operation for Ptv-2.
• Ptv Home - Population Covered: 89.00 %
• PTV News - Population Covered: 78%
Various projects are being implemented under two main Categories: -
I) Public Sector Development Programme (Psdp)
ii) PTV's Self-Financed Projects.
4.11 Training Academy
Established in 1987 Pakistan Television Academy is an apex institution in the country, which imparts professional training in various
disciplines of television broadcast technology. Headed by a full time Director, and assisted by a team of television professionals who
are members of the academic faculty, PTV Academy functions with a prime objective to enhance the professional skills of its
manpower force in variety of fields along with an aim to update their knowledge and keep them informed with the development
taking place in their respective fields. It is a fully equipped training establishment with high academic standards. Academy conducts
basic courses for new employees; refresher courses, seminars and workshops for in-service employees.
Till June 1998, over 3100 persons have attended training programmes conducted by PTV Academy. These participants attended
training courses in Engineering, Computer, Finance, Administration, News, Current Affairs and Programmes Production. They also
include visiting participants from other countries including SAARC members. As of July 1998, the academy has embarked on an
ambitious training programme with over 25 courses/workshops for the year 1998-99. It has opened its doors to the Private Sector and
offered Ten (10) courses on payment, during the period in various programming disciplines. The Academy of late, in order to
optimize the use of its resources, has also started offering its modest recording facilities on payment, to Private Production Houses.
Retrieval of PTV's prized Entertainment Programme Archives, which runs into thousands of hours, and special productions for
international market, are amongst the latest responsibilities functions under the control of the Training Division recently we have
sold archives and 7-1/2 crore for Prime Time TV. A few topics for special productions are plays on Kashmir, and Nishan-e-Haider
recipients.
4.12 Marketing
The Marketing Division of PTV is responsible for marketing the programmes and the commercial time on its screen. It is the major
source of PTV's earnings.The Marketing Division launched its activities on a modest scale after the inauguration of the electronic
media in the country, in November 1964. Over the years, as a result of increase in coverage, television setcount, viewership,
broadcast hours and the growth of business, the Marketing division has likewise, expanded itself on national level.
Central Marketing Office, the main Office of the Marketing Division, is located at Karachi, while Regional Marketing Offices are
operating at each of the PTV Centres at Lahore, Islamabad, Peshawar and Quetta. Additional Marketing Offices at Faisalabad and
Gujranwala are functioning to facilitate the local business and industry. • A major part of the business enacted by the Marketing
Division is through advertising agencies accredited with PTV. These agencies are entitled to 15% commission on their gross billings.
Direct business from clients is also accepted on cash payment. Contracts are also executed between producers of private programmes
and PTV for time purchased programmes. All business conforms to clearly lay down terms and conditions, framed by the Board of
Directors of PTV.
The maximum time allowed for advertising is 60 minutes per day on PTV. Advertisers can book commercial spots in the commercial
breaks provided between programmes and can also sponsor programmes shown on PTV. There are usually two commercial chunks
in a 50 minutes programme.
The tariff for commercial spots and sponsorships is mainly based on viewership, Television setcount and the area of coverage.
Special events/programmes, via satellite transmissions, live sports overages and specially negotiated privileged positions are
negotiated at special packages. Discounts are offered to certain categories of advertisers to encourage them into making deals for
bulk business. The Government also charges a surcharge of 12-1/2 % Central excise Duty and Provincial Taxes on all commercials
booked and telecast by PTV.
4.13 Public Relations
n the course of institutional Projection of PTV the Public Relations Department has been co-coordinating with the National Press
effectively. The other activities are as under: -
i) Daily Press clippings and reports.
ii) Arrangement of Press Show.
iii) Arrangement of Press Conferences.
iv) Issue of Press releases.
v) Reply of False Stories, Propaganda & Criticism and at the same time appreciation of positive articles and items in the Press.
vi) Co-ordination with the Press Artists, Producers and PTV Officials.
vii) Release of PTV Advertisements.
4.14 Information Technology
The Information Technology Department has been recently created to face the challenges of next millennium with special reference
to bring improvement in TV Screen and ensure free-flow of information. The main objectives of Information Technology
Department are as under: -
1. To bring overall efficiency thus triggering increase in productivity.
2. To develop Internets in order to ensure speedy and accurate flow of information.
3. To introduce Computer Graphics and animation for improving presentation in its creativity and style.
4. To launch and maintain PTV's Internet Video Server in order to achieve global viewer ship and compete the challenges of the
contemporary channels.
5. To introduce new concepts of Information Technology
6. To maintain and expand the use of Teletext and Audiotex. To maintain and expand the use of Teletext and Audiotex.
7. To establish a Digital Video Archival Library for on-line use in transmission.
8. To fabricate News Computer Networks for real-time for reporting and its interfacing with main databank.
9. To further enhance the use of Computer Graphics in the fields of sports and Current Affairs.
10. To coin ideas pertaining to the increase in revenue by getting computer screen sponsored.
11. Management Information System.
5. Internship Experience
I started my internship at Pakistan Television on 3rd June 2010.My concerned department was finance department of PTV. The finance
department is further more divided in to others departments .Due to shortage of time I could only worked at 4 departments .I worked
their for 8 weaks.The detail of my working at different departments is given as under:
Time period Departments
Weak 1-2 Payroll Department
Weak 3-4 Billing Department
Weak 5-6 Ledger
Weak 7-8 Reports
5.1 Weak 1-2:
During my first two weeks I worked in the payroll section. This department is most important section of PTV. It deals with the salaries
of the all the employees whether regular or the resource pesons.Other than that it also deals with the overtime paid to employees and
income tax deductions.
5.2.1Tasks of pay roll section:
Recording of salary of employees:
In this section payroll of all employees is recorded in the salary register on monthly basis in this register all information
about the employee’s salary is recorded means in basic salary all incentives and allowances are added and then deduct all the
deductions. This record is preparing department wise and in this register salary is recorded on the basis of employee’s
designation number, his or her designation and name. These records are also maintained in computerized system (fox flow).
Preparation of amendment sheet:
This sheet is prepared for making adjustments. If any person’s salary rate is change for particular month due to any reason
than this amendment sheet is prepare in this sheet his previous rate is mention and along with this new rate is also mention.
Only inspector’s salary is recorded in schedule forms where as amendments for permanent employees are recorded in
computerized forms reason behind is that about near to 1500 employee’s salaries are amended in PTV head quarter. That’s
why all amendments in salaries of employees are done through computer.
Payments for scholar ship:
In PTV it is rule that if PTV employee’s child score above than 80% marks in metric and intermediate he or she gets 1000 Rs
per month for 24 months. Every department has six scholar ships so for giving scholar ship merit list of the children who gets
above than 80% marks is prepare and then select top six children’s and than announce scholar ship for each children. So pay
roll department also record these scholar ships.
In case if the employee’s child is Hafiz-ul-Quran than the scholar ship amount is Rs. 2000 only.
Reimbursements
In this department all types of reimbursements are recorded and these reimbursements are may be for entertainment, patrol,
traveling, electric charges, water charges etc. these reimbursements are made on designation wise.
5.2.2 Over time
If any employee did his official duty after the duty hours is categorized in over times. Over time is given to group 1 from
group 4 and also to the technical staff. Over time calculations
Normal rate = basic salary/158.17*2
Ramadan rate = basic pay/147.33*2
Calculation:
Normal rates
Working hrs per week = 36.5 hrs
Weeks in a year = 52 weeks
Working hrs per year = 1898
Rate per month = 1898/12 = 158.17
Ramadan rates
Working hrs per week = 34 hrs
Weeks in a year = 52 weeks
Working hrs per year = 1768
Rate per month = 1768/12 = 147.33
Financial approvals:
Hours Authority
Up to 30 hrs CAP
Above 30 hrs MD
Procedure of recording over time:
Daily over time slips are prepare for individual employees by heads of that particular department and then these daily slips
are forward to pay roll section for payment. Than payroll section recorded that daily slip’s record on per month over time
card and than approval is made from hypes as recorded in above authorization table. But this over time is given in next
month along with next month salary.
5.2.3 Deductions of tax
Tax must be deducted from every payments income or salary is calculate on yearly basis means salary *12 and than find that
either this income is exemptible from tax or not if not than how much tax should be charge in each month.
5.3 Weak 3-4
In the third and fourth weak I worked in the billing section of Pakistan Television.
The Accountant billing heads this section and the main function of this section is to make payments of all bills i.e. Medical, Electricity
and Telephone etc. which comes from administration as well as other departments.
Advances facility is also availed by the PTV employees but every finance officer have some limits for the approval of advances. The
sanctioning powers of Finance Officers are as under:
Account officer Rs. 10000
Account officer + aca Rs. 40000
Assistant Accountant also maintains bankbook in the billing section
5.3.1 Medical section of billing department:
All permanent employees and their dependents have free medical facility. Dependents include parents, wife, and children but
if the father is earning person than his parents are not included in dependents category. According to new amended rule
(Amended standing instructions); Service rules no 3.14 (medical facility) Clause (a) (i) of ASI-58.
Boy is dependent for 25 years and girl remains dependent till her marriage.
In all cities PTV appoints doctors, they are called medical officers they are appointed in different areas of the cities and every
employee can take medical facility from his area doctor .for this purpose PTV issued medical book. PTV also appoints
chemists who gave free medicine and submits bill in PTV medical section and this section check or verify validity of bills
submitted by employees for reimbursement of medical expenditure and then fill up bank voucher for payment. In each city
one chief medical officer is appointed. If medicines are not available with the particular stores than those stores impose
stamp of not in stock than employee can purchase medicines from open market.
In Rawalpindi and Islamabad Bilal hospital, Shifa international and Islamic international are included in panel. To go abroad
for medical treatment approval from government is required. And operation rates are also different for different operations.
5.3.2 Approvals for medical bill’s amount
Amount Authority
Up to Rs 30,000 APM
From 3001 Up to Rs 20,000 CAP
From 20,000 to unlimited DAP
And in last after clearance of medical cheque payment is made to particular doctor, medical stores and hospitals. And than
this expenditure is debited to particular department of which employee is demanded for medical facility.
5.4 Weak 5-6
In the 5th and 6th weak I worked in the ledger section of the finance department.The ledger section kept the record of all accounts,
which are concerned, to the center income and expenditures. For example Income and expenditure monthly return, Balance Sheet and
profit and loss accounts are maintained in ledger section. In ledger section every asset or liability has his or her own code no. And all
transactions are recorded according to their codes.
Log Register
The data received from relevant departments for each employee is gathered and entered in to Log Register. For example if a person
has taken a loan, then the loan department will send the data that this employee had taken this amount of loan and he has paid up to
this amount and remaining balance is that. So the Log Register is being used as input or source document for computer system. More
over the employee’s personal and permanent data is also entered.
5.5 Weak 7-8
In this department we spend our one-week of internship and I observe different functions;
First and most important function is preparation of financial statements, which includes Balance sheet, Profit and loss account, cash
flows. Financial statements preparing in unit wise. In this department all the financial reports are on yearly basis but this department
also record daily transactions means in this department all sources of income and expenditures are recorded which are supporting for
annual financial statements, and in this department expenditures are also approved that either budget of PTV allows that expenditure
or not.
The second function of this department is to sole queries, explain rules, interpret rules and principles, and which and how much
allowances are given to whom, and solve cases and any discrepancies.
5.6 Skills Used and Gained
I Applied Different Skills During My Internship Period That I Had Learned In My Studies. These Include;
Ms-Office Applications and Data Entry.
Preparing Vouchers and Bank Reconciliation Statement.
Handling Books of Accounts and Official Documents.
Communication with Different People.
Creativity
How To Work In A Team
Making Plans Of Daily Work
This Job Has Increased My Exposure.
Report Making
5.8 Challenges Faced
The Organizational Culture That Was Very Centralized and Really Didn’t Welcome New Ideas and Innovations.
Neither Did It Entertain Fresh and Young Talent.
There Was A Lot Of Corporate Politics Which Was Also A Challenge
6. Finance Department of Pakistan Television
6.1 Accounting System of Pakistan Television
6.1.1 Salient Features of Accounting System
Accounting system of PTV is very well managed and organized, keeping a strong internal control on each and every dealing
irrespective of fact whether is involved in it or not.
Like all other big organizations, PTV also uses “DOUBLE ENTRY SYSTEM” for keeping its books of accounts.
The accounting period starts from 1st July and ends on 30th June.
The accounting system is partially manual and computer based. The all-supporting documents relating to voucher and voucher
it is prepared manually, duly approved by the concerned authority manually, and rest of all system is computerized.
The main books of accounts such as bank book, trade debtors book, payable book, accrued and receivables books are
maintained on accounting software specially designed in accordance with increasing number of transactions.
Most of books of accounts kept on computerized system are managed through special programmers on C++ .
Due to the fact very large number of accounts is daily affected by each transaction; ledgers are further divided in to subsidiary
legers also for the sake of convenience and proper check over the whole system.
Main ledgers and subsidiary ledgers assigned codes and sub codes respectively. These codes and sub codes, accordingly
entered in vouchers and other books affected by transaction involving these heads.
One of main legers and its sub-ledgers along with their coding scheme is as follows
Salary 1600
Bonuses 1601
Contribution to provident fund 1602
Contribution to pension 1603
Contribution to Govt fund 1604
Medical 1605
Accommodation 1606
Conveyance 1607
Education fee 1608
Thus a special coded is assigned to the main head or ledger and sub ledger are therefore continued in systematic manner in accordance
with the original scheme of main code.
Each center submits its financial statements and progress reports monthly to the head quarter where it is consolidated to review
the over all performance.
Master trial balance is prepared on monthly basis, to check the arithmetical accuracy and consensus for each and every
account, before the preparation of final trial balance.
For every expense irrespective of its amount, budget is allocated for it in the beginning of each month in the light of past
experience for it.
6.2 Accounting System
The whole accounting system of PTV is constituted of following processes successfully carried out to operate the whole organization.
6.3 Voucher
Written evidence of a financial transaction is called voucher” Basic idea for the voucher is that every transaction that will result in
cash payment or receipt must be verified, approved in writing and recorded before a cheque is issued.
Voucher for each and every transaction is prepared regardless of fact whether the transaction is for payment of an expense, purchase
of an asset, payment of a liability and receipt of revenue.
Different types of vouchers used in accounting system of PTV are,
Debit vouchers.
o Petty cash vouchers.
o Bank payment vouchers.
Credit vouchers.
Journal vouchers ( J V )
The most important feature of voucher is that it serves as a “JOURNAL ENTRY” for the initialization of accounting cycle.
Voucher credit or debit, as the case may be, represents an approved and authentic business transaction, itself containing the respective
debit and credit charge on ledgers and sub ledgers along with amounts, there on.
6.3.1 Use of Different Vouchers
PTV has categorized each voucher, for different operations, based upon the receipt of cash whether inside or outside the organization,
and internal adjustments.
VOUCHER
Debit Voucher Credit Voucher
Bank Payment Voucher
Petty Cash Voucher
Journal Voucher
Different vouchers are printed in different colors, to make dealing and categorization of them an easy process. For example,
6.3.2 Preparation of Vouchers
Vouchers are prepared as a first step towards making a financial transaction a part of books of accounts.
Preparation of voucher involves a series of approval from each level of designation, depending on nature and amount of transaction.
Vouchers are not acceptable at any stage unless and until all the concerned authorities and officers have given it approval.
Following are the limits for approval of voucher, depending on amount represented by it.
Below Rs10, 000 must be approved by Assistant Accounts Officer.
Accounts Officer must approve Rs10, 000 to Rs 20,000.
Assistant Controller Finance must approve 20,000 to Rs 50,000.
Deputy Controller Finance must approve Rs50, 000 to Rs1, 00,000.
.
6.3.3Process for Preparation of Debit Voucher
Debit vouchers are prepared for the transactions involving “outflow” of cash or in other words all transactions relating to the payment
of case are recorded in “debit voucher”.
Example
If the organization needs to purchase an asset, it is not simply recorded in relevant ledger as debit resulting credit of cash; rather it
involves the following systematic series of steps to bring the above changes.
Purchase Requisition: The concerned department or unit needing any kind of asset would submit “purchase requisition” to the
administration department.
Pre- Audit: P ersonnel in administration department after verifying the need of particular department would send it for pre-audit, to
confirm whether a budget for such purchase is sufficient or not.
Tender Calling: After approval for budget is made, the administration department would call tenders subject to the following two
cases,
a) Asset is costing below Rs 20,000: If the asset is costing below Rs 20,000 tender or quotations are not formally called rather
purchase is made through the “authorized dealers” listed on panel for purchase of asset.
b) Asset is costing above Rs 20,000: In such a case tenders or quotations are published in all daily Urdu and English newspapers.
Tender committee : As soon as receipts against tenders are received, a “tender committee”, quorum of which is at least three officers,
each from finance, administration an engineering department, critically analyzes the different receipts against called tenders.
Comparative statement: this statement is made after the comparison of price list provided d by each registered supplier, but not
ignoring the factor of quality.
Purchase Order: Against the approved quotation purchase order is issued to the concerned supplier.
Receipt of supplies or asset: On the receipt of asset, it is kept at store.
Store Inspection Report (S.I.R): Statement named as “store inspection report” is submitted to administration department containing
satisfactory remarks regarding receipt of asset, if it is so.
Goods Received Notes (G.R.N): Statement called “Goods Receipt Notes” or G.R.N is submitted to coordination officer regarding
receipt of asset as per mentioned in quotation and also according to given terms and conditions.
Store Issuance Report: This report is prepared by store keeper in case of receipt of capital items only such as machinery, equipment
etc.
Submission of Bill from Supplier: After the due approval of all above statements and confirming its authenticity also, the supplier
submits the bill or invoice of such purchase to the coordination officer.
Final Preparation of Voucher: On the receipt of all the above-mentioned documents approved by concerned authorities, is the
scrutinized and then finally voucher is prepared for the due payment.
Purchase Requisition Tenders Receipts Against Tenders
Purchase Committee
Purchase Order
Receipt of Asset
G.R.N
S.I.RReceiving Bill from Supplier
PREPRATION OF DEBIT
VOUCHER
PREPRATION OF DEBIT
VOUCHER
6.3.4 Process of Preparation of Credit Voucher
Credit vouchers are prepared for all the transactions involving there on “receipts of cash”.
Example: As one of the major source of revenues for PTV is advertisement revenue. Therefore on receipt on any advertisement
revenue credit voucher is prepared, containing all the necessary explanations.
Point of consideration is that credit voucher is not prepared unless and until advertisement is made on the television.
6.3.5 Petty Cash and Preparation of Its Vouchers
Petty cash is the amount of cash kept on hand for the purpose of making small incidental expenditures for which issuing a cheque
would not be practical.
Writing and casting voucher payable to petty cash establish a petty cash fund.
The money is given to the designated custodian, who is responsible for making disbursements from the fund.
For each cash payment from the fund a petty cash voucher is prepared and placed in the fund. When the fund runs low, it is
replenished by a check for the amount of vouchers in the fund.
In PTV cooperation, petty cash in all departments are kept and recorded through “Imprest System”.
Voucher is prepared to record replenishing the fund includes “Dr” and various expense accounts for the amount indicated there on.
Different limits regarding the imprest money of various departments are,
For Administration Department, Rs 40,000 per month.
For Finance Department, Rs 30,000 per month
For Marketing department, Rs 35,500 per month
6.3.6 Preparation of Journal Voucher
A part from cash involving transactions which are recorded in credit and debit vouchers, all the non-cash transactions or the
transactions where inflow or outflow of cash is not involved, are recorded in Journal Vouchers.
Transactions recorded through preparation of journal vouchers includes,
All kind of rectification entries regarding compensational errors, errors of principles etc. All kind of internal adjustments not only
with in a centre but also includes internal adjustments between PTV main centres by preparing its J.V’s at headquarter.
Unearned revenues, prepaid expenses are also made a part of book of accounts by maintaining its records through preparation of
journal vouchers.
6.3.7Process after Preparation of Vouchers
After the completion of “vouching”, which is a not only a lengthy process but also involves many formalities, is finally sent to “bank
section”.
JOURNAL VOUCHER
RECTIFICATION ENTERIES
ADJUSTING ENTERIES
INTERNAL ADJUSTMENTS B/W CENTERS.
6.4 Master Trial Balance
Master trial balance is prepared to confirm the accuracy and to ensure the correct recording of vouchers, bankbook, and main ledgers
& sub ledgers.
Master trial balance is prepared on monthly basis.
Master trial balance like bankbook is prepared through computerized system, by using computer programming in C++.
6.5 Trial Balance
Final trial balance is prepared at the end of each year ending on 30th June.
Trial balance is prepared by assistant accounts officer, in a computer program using C++.
Yearly prepared trial balance confirms the arithmetical accuracy of transactions made during whole year but can’t be regarded in any
case a proof of it authenticity.
6.6 Adjusting Entries
Although the non-cash relating transactions are entered during the year through journal voucher, merging its effect in the trial
balance, however some of the entries are passed only at the end of accounting period as per policies decided.
These kind of entries include,
Depreciation expense on various fixed assets owned by the organization
.Creation of allowances and uncollectible for the coming accounting period in the light of past experience.
6.7 Financial Statements
Financial statements are prepared at the end of each year. Financial statements made at headquarter of PTV are the consolidated
statements of all the centers.
These statements include,
Profit and loss account.
Balance sheet
Statement for changes in financial position.
Cash flow statement.
6.8 Closing Entries
At the end of each year closing entries as passed in accounting books of headquarter for recognizing all the expenses, incomes
relating to the particular year ended.
However each center also closes it book, for recognizing expense and revenues, for the individual evaluation.
7. Critical Analysis
7.1 Swot Analysis
SWOT analysis is method that helps the management to identify their organization
Strengths (S)
Weaknesses (w)
Opportunities (O)
Threats (T)
In the light of our study the SWOT analysis of accounts and finance departments of PTV Corporation is as follows
7.1.1 Strengths
Accounts and finance department owns valuable assets of employees who are diligent and determined.
Although itself different department of PTV in Islamabad centre are not so good but the accounts and finance departments
is the only one to achieve its goals.
All the employees working are highly skilled, experienced and competitive, knowing and cooping with the all current
needs of 21st century
The coordination among different sections of finance departments is highly appreciated.
The innovation and novel ideas of employees has brought many positive changes in the current structure of the department
and they are still struggling for its improvement.
The technology used for maintaining the books of accounts and the preparations of financial statements is updated
according to the ever changing needs of its operations.
The depreciation method used for depreciating the fixed assets is diminishing balance method which is the most
appropriate one not only involving less complexities but also much flexible then any other method.
The strong internal control system of accounts departments has made its operations considerably satisfactory
Proper check at each level of accounting system has minimized the chances of manipulation of accounts and embezzlement
of cash.
Apart from manual system which is applicable up to preparation of vouchers, the use of special computer programs has
made the accounting system less time consuming.
Teaming and coordination between different departments has made the wastage of resources very low.
Continuous audit has made successful moral check over the employees
7.1.2 Weaknesses:
Like all the other private channels where the accounts are kept on fully computerized system, the finance department of
this organization till yet has not made its whole accounting system fully computerized.
The realization principle stated that “Revenue must be recorded in books of accounts for the period in which it is earned”,
but the license fee in this organization is recorded at the time when actual cash payment is received regardless of the fact to
which period it actually relates.
The communication gap between controller finance and other employees may be discouraging many ideas at initial level.
Apart from strong internal control manual dealing and preparation of voucher has increased the chances of fraud.
All the departments are not linked through the networking resulting in delayed decision which actually requires quick
actions.
No rewards and incentives are offered to the efficient employees for the encouragement.
The past accounting record has no proper backup and is now serving food for termites.
Due to lenient policies regarding payment of due amounts have now started increasing the amount of uncollectible.
7.1.3 Opportunities:
If PTV makes their accounting system fully computerized then they would be able to eliminate the flaws in the current
accounting system.
They can use simple method of depreciation in order to save time and effort.
The can increase sale through improved advertising.
7.1.4 Threats:
Due to the manual dealing of voucher there is a threat of frauds.
As there is no backup of their past accounting records they are a threat that they might lose all of their data.
7.2 PEST ANALYSIS
7.2.1 Political
PTV is the semi-autonomous body and ministry of information has 100% share in it. Hence all the government policies are
implemented in his rules. PTV cannot engage best personnel including anchor persons available in the market who has
qualified from renowned educational institutions.
In Pakistan television due to the government structure and centralized structure employees are always misinterpreted by some
bedevil in government institution. Flow of information is not fast as the private organization has.
7.2.2 Economical
Pakistan with a population of about 17 million people has undergone a remarkable macro economic growth during last few
years, but the core problems of the economy are still unsolved. Inflation is one of these core problems.
Pakistan has formulated sound macroeconomic policies that will help the Pakistani economy to grow stronger but the recent
political violence and uncertainties could slow down the growth.
PTV Home is one of the top powerful entertainment channels as per Gallup and people’s meter report and it has a big market
share
7.2.3Social
Society’s values are changing very fast and people want to get up-to-date knowledge about the current affairs and PTV is not
able to fulfill the demands of the people.
It shows adds free of cost regarding missing persons, blood donations etc which is one of the major responsibility undertaken
by PTV.
One of the major social advantages of PTV is that it promotes the true color of the Pakistani culture.
PTV is currently showing very traditional programs which are not liked by new generation. Instead other private channels are
trying to fulfill this gap.
7.2.4 Technological
Pakistan television is not going in a past as the other private channels are competing with each others in an Information
Technology. But now there are very keen about the Information Technology system and adopting the trend of today’s media.
Information Ministry signed a contract with their long live friend China in which they provide new technical equipment and
machinery to Pakistan Television and give Technical assistant to the Pakistan Television.
Now PTV is providing most of its programs live to its viewers and trying to compete with other private channels.
7.3 Financial Analysis
7.3.1Balance Sheet
Pakistan Television Corporation
2,007 2,008 2,009
Non Current Assets
Fixed Capital Expenditures:
Operating Fixed Assets-Tangible 1,796,875 1,913,081 2,015,625
Capital Work In Progress 276,469 649,550 865,520
2,073,344 2,562,631 2,881,145
Long Term Deposits 18,189 28,367 39,326
Long Term Investments 89,999 89,999 89,999
Long Term Loans 92,348 90,760 86,459
Current Assets
Stores, Spares &Loose Tools 296,482 391,367 462,565
Trade Debtors 1,253,124 1,703,984 1,965,352
Loans ,Advances, Deposits:
Prepayment & Other Receivables 1,493,829 1,762,730 2,005,250
Cash and bank Balances 1,052,635 733,528 852,625
4,096,070 4,591,609 5,285,792
Total Assets 6,369,950 7,363,366 8,382,721
Share Capital & Reserves
Share capital 1,529,350 1,529,350 1,529,350
Capital Reserve 223,900 223,900 223,900
Accumulated Profit(Referred to statement of changes in
equity) 11,307 163,548 192,085
1,764,557 1,916,798 1,945,335
Deposits for Issues Of Shares 2,756,797 3,086,761 3,361,753
Grants &Aids 280,232 244,280 250,500
Work Account 217,631 181,668 175,520
Non Current Liabilities
Deferred Taxation 30,833 ---- 107,191
Long Term Loan 22,753 13,753 154,664
Pension Payable 78,570 426,890 432,560
Long Term Deposits &Retentions 530 179 370
132,686 440,822 694,785
Current Liabilities
Short Term Bank Borrowings ----- 200,454 214,646
Current Maturity Of Long Term Loan 46,500 45,000 45,000
Gratuity fund Payable 272,521 19,280 357,191
Creditre,accrued & other Liabilities 899,026 1,228,303 1,337,991
1,218,047 1,493,037 1,954,828
Total Equity And Liabilities 6,369,950 7,363,366 8,382,721
7.3.2Income Statement
Pakistan Television Corporation
2007 2008 2009
Revenue-Net 3,805,525 4,536,175 5,150,321
Expenditures:
Operating 3,205,681 3,405,938 3,628,521
Administrative 892,707 978,327 1,013,269
Financial Others 3,703 3,560 3,845
4,102,091 4,387,825 4,645,635
Operating Profit /(Loss) (296,566) 148,350 504,686
Other Income 116,714 119,405 120,465
Profit/(Loss ) before Taxation (179,852) 267,755 625,151
Taxation:
Current 21,681 25,605 29,870
Deferred -- (30,833) (26,588)
21,681 (5,228) 3,282
Profit & Loss for the year 201,533 272,983 621,869
7.3.3 Vertical and Horizontal Analysis
In addition to financial ratio analysis, it is often useful to express balance sheet and income statement items as percentage.
In vertical analysis, it is expressed the various components of a balance sheet as percentage of the total asset of the company and in
income statement all components as percentage of net sales. The expression of single item of financial statement as percentage of total
helps the analyst spot trends with respect to the relative importance of that item over time.
In horizontal analysis, all balance sheet or income statement items for a base year consider as 100% and subsequent financial
statement items are expressed as percentage of their values in the base year.
In summary, these two types of analysis are helpful in comprising companies whose data differ significantly in size and every item of
financial statements gets placed on as relative or standardized basis.
7.3.4Horizontal Analysis of Balance Sheet
Formula:
2007 2008 2009
Non Current Assets
Fixed Capital Expenditures:
Operating Fixed Assets-Tangible 100.00 106.47 112.17
Capital Work In Progress 100.00 234.94 313.06
100.00 123.60 138.96
Long Term Deposits 100.00 155.96 216.21
Long Term Investments 100.00 100.00 100.00
Long Term Loans 100.00 98.28 93.62
Current Assets
Stores, Spares &Loose Tools 100.00 132.00 156.02
Trade Debtors 100.00 135.98 156.84
Loans ,Advances, Deposits:
Prepayment & Other Receivables 100.00 118.00 134.24
Cash and bank Balances 100.00 69.68 81.00
100.00 112.10 129.05
Total Assets 100.00 115.60 131.60
Share Capital & Reserves
Share capital 100.00 100.00 100.00
Capital Reserve 100.00 100.00 100.00
Accumulated Profit(Referred to statement of changes in equity) 100.00 1446.43 1698.81
100.00 108.63 110.24
Deposits for Issues Of Shares 100.00 111.97 121.94
Grants &Aids 100.00 87.17 89.39
Work Account 100.00 83.48 80.65
Non Current Liabilities
Deferred Taxation 100.00
Long Term Loan 100.00 60.44 679.75
Pension Payable 100.00 543.32 550.54
Long Term Deposits &Retentions 100.00 33.77 69.81
100.00 332.23 523.63
Current Liabilities
Short Term Bank Borrowings 100.00
Current Maturity Of Long Term Loan 100.00 96.77 96.77
Gratuity fund Payable 100.00 7.07 131.07
Crediters,accrued & other Liabilities 100.00 136.63 148.83
100.00 122.58 160.49
Total Equity And Liabilities 100.00 115.60 131.60
Comments:
7.3.6Horizontal Analysis of Income Statement:
2007 2008 2009
Revenue-Net 100.00 119.20 135.34
Expenditures:
Operating 100.00 106.25 113.19
Administrative 100.00 109.59 113.51
Financial & Others 100.00 96.14 103.83
100.00 311.98 330.53
Operating Profit /(Loss) 100.00 (192.78) (195.19)
Other Income 100.00 102.31 103.21
Profit/(Loss ) before Taxation 100.00 (90.47) (91.98)
Taxation:
Current 100.00 118.10 137.77
Deferred 100.00
100.00 118.10 137.77
Profit & Loss for the year 100.00 (208.57) (229.75)
7.3.7 Vertical Analysis of Balance Sheet:
2007 2008 2009
Non Current Assets
Fixed Capital Expenditures:
Operating Fixed Assets-Tangible 28.21 25.98 24.04
Capital Work In Progress 4.34 8.82 10.33
32.54 34.08 34.37
Long Term Deposits 0.29 0.39 0.47
Long Term Investments 1.41 1.22 1.07
Long Term Loans 1.45 1.23 1.03
Current Assets
Stores, Spares &Loose Tools 4.65 5.32 5.52
Trade Debtors 19.67 23.14 23.45
Loans ,Advances, Deposits:
Prepayment & Other Receivables 23.45 23.94 23.92
Cash and bank Balances 16.53 9.96 10.17
67.45 65.19 65.29
Total Assets 100.00 100.00 100.00
Share Capital & Reserves
Share capital 24.01 20.77 18.24
Capital Reserve 3.51 3.04 2.67
Accumulated Profit(Referred to statement of changes in equity) 0.18 2.22 2.29
27.70 26.03 23.20
Deposits for Issues Of Shares 43.28 41.92 40.10
Grants &Aids 4.40 3.32 2.99
Work Account 3.42 2.47 2.09
Non Current Liabilities
Deferred Taxation 0.48 1.28
Long Term Loan 0.36 0.19 1.85
Pension Payable 1.23 5.80 5.16
Long Term Deposits &Retentions 0.01 0.00 0.00
Current Liabilities
Short Term Bank Borrowings 2.72 2.56
Current Maturity Of Long Term Loan 0.73 0.61 0.54
Gratuity fund Payable 4.28 0.26 4.26
Creditrs,accrued & other Liabilities 14.11 16.68 15.96
72.29 73.96 76.69
Total Equity And Liabilities 100.00 100.00 100.00
7.3.8 Vertical Analysis of Income Statement:
2007 2008 2009
Revenue-Net 100.00 100.00 100.00
Expenditures:
Operating 84.24 75.08 70.45
Administrative 23.46 21.57 19.67
Financial & Others 0.10 0.08 0.07
107.79 96.73 90.20
Operating Profit /(Loss) (7.79) 3.27 9.80
Other Income 3.07 2.63 2.34
Profit/(Loss ) before Taxation (15.02) 5.90 12.14
Taxation:
Current 0.57 0.56 0.58
Deferred (0.68) (0.52)
0.57 (0.12) 0.06
Profit & Loss for the year 7.22 6.02 12.07
7.3.9Ratio Analysis
Ratio analysis is performed using financial ratios, where financial ratio is defined as an index that relates two accounting numbers and
is obtained by dividing one number by the other. It is the tools used to analyze financial condition and performance. Ratios are
calculated to get a comparison that may prove more useful than the raw numbers by themselves. Ratios can be divided into five basic
types; liquidity, activity or asset management, solvency or stability, profitability and market ratios.
Liquidity Ratios
These are the Ratios which measure the short term financial position of the firm and calculated to comment upon the short-term
paying capacity of a concern firm's ability to meet its current obligations. It includes; Current Ratio, Quick Ratio, Cash Ratio, etc.
2007 2008 2009
Current Ratio 3.36 3.07 2.70
Quick Ratio 1.89 1.63 1.44
Cash Ratio 0.86 0.49 0.43
Current Ratio (Current Asset / Current Liabilities): It represent cushion available to the creditor or debt paying ability that the firm
has Rs: 3.36, 3.07 and 2.70 of current assets for every Re: 1 current debt in 2007, 2008 and 2009.
Quick Ratio (Liquid Asset / Current Liability): The Ratio is also termed as the asset test ratio or liquid ratio. The liquid asset
determine by deducting the inventories and prepayments from current assets. It measures the firm's capacity to pay off current
obligations immediately, so in 2009 it has Rs: 1.44 for every Re: 1 current debt.
Cash Ratio (Cash / Current Liability): It represent that firm has capacity to pay its current debt in cash, so in 2009 is available Rs:
0.43 for every Re: 1 of current debt.
These ratios show the better liquidity position of PTV, but there is declining trend in these ratios. All ratios higher in 2007 and lower
in 2009, it may be the cause that the increase in current, quick and cash assets is lower than the increase in current liabilities, but still
these ratios are in satisfactory condition.
Stability or Solvency Ratios
These ratios measure the contribution of financing by owners as compared to financing by outsider, financing by owner or outsiders
compared with total assets, relation between assets and equity, and different relation among Total Capitalization to Assets, Total
Equity (inside and outside) to Assets, Total Debt (current and non-current) to Assets or Capitalization, for showing the company’s or
firm’s stability or solvency in long term basis. It includes following ratios:
2007 2008 2009
Equity
Multiplier(Times)
3.63 4.19 4.78
Equity to Assets (%) 27.52 23.81 20.91
Debt To Asset (%) 19.12 20.27 23.31
Debt To
Equity(Times)
0.19 0.20 0.23
Equity Multiplier (Assets / Equity) and Equity to Assets (Equity / Assets * 100): This ratio shows percentage of total investment in
assets that has been financed by the equity. Equity Multiplier represents that Assets is 4.78times greater than equity in 2009. And in
other words equity is 20.91 % of total assets. From 2007 to 2009 there is decreasing trend; it may be the cause of increasing in
company’s liabilities. (Asset = Liabilities + Equity).
Debt Related Ratios (Debt / Assets), (Debt / Equity),: Ratios shows the extent to which the firm is financed by debt, and represent the
relation among Debt to Asset, Equity and Capitalization etc. e.g. debt to asset ratio shows that the debt is 23.31% of total assets in
2009, and debt to equity ratio shows that if there is a Re: 1 equity then debt is Re: 0.23. All debt related ratios are increasing from
2007 to 2009, it may be the cause that debt is increasing more than other (denominator) factor, and the cause of increasing in debt is
the increase of Pension Payables in non-current liabilities and the increase of Gratuity Payables in current liabilities.
Activity or Asset Management Ratios
These set of ratios use for measuring the firm’s ability to utilize its assets effectively. It is been compare company’s revenues to its
different shapes of assets. In this category following ratios are calculated
2008 2009
Total AssetTurnover(Times) 0.66 0.65
Fixed Asset
Turnover(Times)
2.44 3
Days Revenue
Outstanding(Days)
109 120.50
Total Asset Turnover (Revenue / Average Total Assets): It represents that firm earn Rs: 0.66 in 2008 and Rs: 0.65 in 2009 for every
Re: 1 of its total assets.
Fixed Asset Turnover (Revenue / Average Fixed Assets): It shows the relation between revenue and fixed assets. So, the firm earns
Rs: 2.44 in 2008 and Rs: 3 in 2009 for every Re: 1 of its fixed assets.
The decrease of in these ratios from 2008 to 2009 may be the result of decrease in revenue in 2009 compare with 2008 and increase in
assets.
Days Revenue Outstanding (Average Trade Debtors *360 / Revenue): This ratio represents that company’s ability to receive revenue
from its customers soon, means how much days take company receiving its outstanding revenue. So, the ratio shows 109 DRO in 2008
and 120.50 DRO in 2009. There is increase in days from 2008 to 2009; it is not a good sign while already company’s DRO is much
higher. The reason of increase may be the decrease in revenue from one year to other
Profitability Ratios
Theses ratios measure the results or return of business operations or overall performance and effectiveness of the firm, or relate profits
to sales and investments. These include operating profit margin, before and after tax income margin, return on assets, return on equity,
basic earning power etc.
2008 2009
Operating Profit Margin
(%)
3.27 9.79
Basic Earning Power(Times) 0.036 0.074
Return on Assets (%) 3.70 7.41
Return on Equity (%) 14.24 31.96
Operating Profit Margin (Operating Profit / Revenue * 100): It is a measure of efficiency of firm’s operations. So in 2008 it is
3.27% and in 2009 is 9.79%
Basic Earning Power (EBIT / Total Assets): It is a measure of performance that shows relation of earning before interest and tax with
total assets. It represents those Rs: 0.036in 2008 and Rs: 0.074 in 2009 EBIT for every Re: 1 of Total assets.
Return on Assets (After Tax Income / Total Assets *100): It is the measure of return or result on total investment (assets). So, the
return is 3.70% in 2008 and 7.41% in 2009.
Return on Equity (Income / Equity *100): It is the measure of return on shareholder’s investment. It represents that in 2008 ROE is
14.24% and in 2009 it is 31.96%.
8. Recommendations & Conclusion
Recommendations
Authority must be delegated at the lower level through decentralization.
The people should be appointed according to merit rather than political appointees.
New technology should be used for producing and live coverage of different types of programs.
The information which is given on the Pakistan television should be accurate.
Political involvement should be reduced as low as possible.
Innovation and new ideas should always welcomed in the organization
The self development plans should be financed; it will encourage the other employees as well as to go for higher studies and
specialists.
PTV corporate level has to think over its overall strategy and set objectives keeping in view the stiff competition of other
private channels.
PTV has to take help from the information technology to improve coordination among the various units/centers for better
output.
PTV should try to depend more on their own productions instead private productions in telecasting the programs.
PTV should also be proactive in making their plans and strategies and provide the environment of team work instead of
bureaucratic.
PTV has to find new areas of the world where its programs should be telecasted and enhance the market value of PTV.
Conclusion
PTV is big organization and it has different departments performing different functions so it is almost impossible to go through all
departments within just 8-weeks. Although my area of concentration was finance division only but this also requires a long period of
time to go through all sub-sections of finance but within this specified I tried to get as much as possible through discussion and doing
practical works.
Although PTV is profitable organization but still there is a lot of room for improvement, by following the recommendations PTV can
make a great progress
