Chapter 02: Plan of Internship Program

2.1 Introduction of the OFFICE

I have completed my internship in the RESHMA POWER GENERATION PVT

LIMITED Pakistan, IN Main Branch 8TH FLOUR ASHAYANA SHOPING CENTER
78-D/1 MAIN BLAVERURED GULBERG iii LAHORE.

2.2 Starting and Ending Dates

From 15/07/2020 to 31/08/2020

2.3 Names of Departments

 ACCOUNTS/FINANCE Department
 MANAGEMENT OFFICE
 TRAINING DEPARTMENT
 ADMIN DEPARTMENT

Starting & Ending Dates of each Department in Internship Program

Names of Departments
Duration
From To

ACCOUNTS/FINANCE Department 15-07-2020 15-08-2020

MANAGEMENT OFFICE 16-08-2020 20-08-2020

TRAINING DEPARTMENT 21-08-2020 25-08-2020

ADMIN DEPARTMENT 26-08-2020 31-08-2020

Training Program:
2.4 ACCOUNTS/FINANCE Department/ activities:

ACCOUNTS Section:

 BANK RECOLICALTION
 SALARY/CASH DIBURSMENT
 VOUCHER PREPARATION

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  Security Documents Maintenance
 Arrangements for FUNDS

FINANCE SECTION:

 FINANCE BUDGTING
 PROFIT AND L0SS CALCULATION
 RATIOS
 BALANCE SHEET

 Accounts Payable (money out) 

In order to maintain great relationships with vendors making sure that everyone is

paid on time is a vital role. The role of the accounting department includes
keeping an eye on opportunities to save money, for example, determining if there
are discounts or incentives available for paying certain vendors more quickly.  At
the very least, AP should be scheduled to assure that the least amount of money
has to go out per payment, i.e., no late payment charges!

Accounts Receivable and Revenue Tracking (money in) –

Another critical duty of the accounting department is to account for and track
receivables, including outstanding invoices and any required collection actions.
Accounts receivable is responsible for creating and tracking invoices.  The
responsibility here includes assuring that customers pay those invoices on time, so
a system of friendly reminders is crucial.

Payroll –

Payroll is a critical function of the accounting department and includes making

sure all employees are paid accurately and timely. In addition, proper tax is
assessed and tax payments are on time with state and federal government
agencies.

Reporting and Financial Statements –

The primary reason you collect data properly in your accounting software is to
prepare financial reports that can be used for budgeting, forecasting and other

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decision making processes. In addition, these and other reports are needed for
communication to investors, banks and other professionals that play a role in the
growth of your business.

Financial Controls – 

Financial controls include reconciliations, dividing the responsibilities and

following the GAAP standards of accounting principles, all of which are
implemented with view toward compliance, fraud and theft prevention.  The role
of the Controller is to ensure procedures are set up properly to manage that
process without errors

2.5 Finance Department

2.5.1Bookkeeping and Payables/Receivables

Bookkeeping is the most basic financial activity in a company. Before a business

owner ever considers hiring a CFO, they bring in a bookkeeper, who tracks all of
the transactions in the organization, covering both sales and expenses. As the
organization grows, they might hire more specialized payables and receivables
clerks, to take over functions such as corresponding with vendors and suppliers,
beyond recording transactions.

2.5.2. Financial Reporting and Control

Financial Reporting and Control is the function that takes raw accounting entries
and transforms them into usable and comparable financial statements. Requiring
far more judgment than the bookkeeper’s role, this function involves everything
from ruling on how to implement accounting principles to designing financial
processes of the organization, selecting accounting systems, liaising with external
auditors, and ensuring that there are no gaps or oversights in existing processes.

2.5.3. Tax and Compliance

Running a business involves paying tax, and paying tax means doing many
calculations and filling out many forms. Often using the financial statements as a
basis, along with various other configurations of the information produced by
Bookkeeping and Payables/Receivables, the Tax and Compliance function will
make sure all of the government forms and filings are sent complete and on time
to the taxman. A strong Tax and Compliance function will go one-step beyond

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simple compliance, and will find ways to minimize tax, to maximize the
company’s net income.
The Future
The role of the “VP Strategic Finance” typically looks to the future, using the past
as a starting point but being aware that the future doesn’t always look like the
past. Typical designations or degrees for this role will include the CMA, CFA,
MBA and MFIN. Note that the larger number of headings below doesn’t indicate
the VP Strategic Finance works harder than the VP Accounting!

2.5.4. Strategic Planning and Financial Planning & Analysis

This function, “FP&A” for short, is the true bridge between the Past and the
Future. FP&A regularly creates strategic and financial plans that forecast what
financial results (sales and expenses) will look like in future periods. Then, they
compare actual results—prepared with the assistance of the Financial Reporting
and Control function—to determine areas where the business can improve. With
this “variance analysis” complete, they can then prepare more accurate forecasts
for the future. A strong FP&A function will not only generate annual forecasts but
will be able to update them even over the course of a day or two, and to run many
scenarios that examine the effects of, say, losing a big customer or an economic
contraction.

2.5.5. Treasury & Working Capital Management

The key role of Treasury is to make sure that the company doesn’t run out of cash.
This means, among other things, forecasting the upcoming working capital
(receivables, payables and inventory) needs of the company, investing surplus
cash in short-term instruments to generate modest interest income, and managing
currency risk.

2.5.6. Capital Budgeting

Capital Budgeting is the function responsible for selecting between the various
uses of capital, or capital projects. After all, most organizations will have money
available to invest in the business, with the hopes of either growing sales or
reducing expenses. But the opportunities for spending typically exceed the
amount available to spend, so Capital Budgeting develops business cases to
evaluate and identify the most effective projects. A strong Capital Budgeting
function will not only forecast project benefits, but will also track these benefits

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over time to determine whether the use of capital was as effective as originally
anticipated.

2.5.7. Risk Management

Risk Management is a function that is rapidly developing after the financial

scandals of the early 2000s (Enron, WorldCom, the Great Recession and
Lehman/Bear Stearns collapse, etc.). In the financial services industry, the
function is particularly central as most institutions run with a high amount of debt
(leverage), though leaders in other industries are also bulking up this function.
Risk Management takes a hard look at some of the key risks faced by the
company—currency, interest rate, market, operational, legal, etc.—and tries to
quantify the possible impacts so that they can be mitigated as much as possible. If
FP&A looks at the base case scenario for the company’s financial results, Risk
Management takes a wrecking ball to it.

2.5.8. Corporate Development & Corporate Strategy

Corporate Development and Corporate Strategy can be widely defined, but it is

the area of Finance most heavily populated by former investment bankers and
management consultants. As such, common tasks that fall to this function include
sourcing and analyzing mergers & acquisitions deals, raising debt and equity
financing, making capital structure decisions and providing insight into high-level
strategic decisions such as entering a new market.

2.6 FINANCIAL ANALYSIS

2.6.1 Ratio Analysis

In ratio analysis, different types of ratios are calculated. Liquidity, profitability, Debt
ratios are calculated

Current ratio=current asset /current liabilities

Current Assets 2019 2018 2017

(Rupees in “000”)
Cash and balances with Treasury 293,198 247,917 160,405
Banks

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 Balances with other Banks 13,598 13,050 26,992
Total Current Assets 306,796 260,967 187,397
CURRENT LIABILITIES
Bills Payable 19,867 9,944 13,195
Deposits and other accounts 2,197,985 2,011,313 1,727,059
Borrowings 471,757 392,739 360,106
Total Current Liabilities 2,689,609 2,413,996 2,100,360

Current Ratio (2019) =306,796/2,689,609

=0.11%

Current Ratio (2018) =260,967/2,413,996

= 0.10%

Current Ratio (2017) =187,397/2,100,360

= 0.08%

Interpretation:

Current ratio of the Bank is increased to 0.11% in 2019 as compared to 2018 and 2017,
which are 0.10% and 0.08% respectively, and indicates that the bank has kept so much
current assets to pay current liabilities.

Advances-Deposit Ratio:

Advances Deposit Ratio = Advances/ Deposits X 100

Advances Deposit Ratio (2019) = 1,008,399 X 100 = 45.87%

2,197,985

Advances Deposit Ratio (2018) = 926,340 X 100 = 46.05%

2,011,313

Advances Deposit Ratio (2017) = 740,345 X 100 = 42.86%

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1,727,059

Interpretation:

The Advances deposit ratio of the Bank has declined to 45.87% in 2019 as compared to
48.72% in the 2018 but increased in 2018 as compared to 42.86% in 2017 .This shows
that the Bank has small concentrate on providing the loans to the customers due to lack
of information about the background and assets of customers.

Investment-Deposit Ratio:

Investment Deposit Ratio = Investments X 100

Deposit

Investment Deposit Ratio (2019) = 1,442,404 X 100 = 65.62%

2,197,985

Investment Deposit Ratio (2018) = 1,284,975 X 100 = 63.88%

2,011,313

Investment Deposit Ratio (2017) = 1,296,537 X 100 = 75.07%

1,727,059

Interpretation:

The investment-deposit ratio of the Bank was 65.62% in 2019 and 63.88%in 2018 and
75.07%in 2017 which is increasing with the passage of time and it shows that the bank
using efficiently the deposits of the customers.

Advances to Total Assets Ratio:

Advances to Total Assets Ratio = Advances X 100

Total Assets

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Advances to Total Assets Ratio (2019) = 1,008,399 X 100 = 32.19%

3,132,360

Advances to Total Assets Ratio (2018) = 926,340 X 100 = 33.03%

2,803,886

Advances to Total Assets Ratio (2017) = 740,345 X 100 = 29.47%

2,511,452

Interpretation:

Advances was the 29.47% of the Total Assets in 2017 and rise to 33% in 2018 and again
fall to 32% in 2019 because of fluctuation in advances.

Investment to Total Assets Ratio:

Investment to Total Assets Ratio = Investment X 100

Total Assets

Investment to Total Assets Ratio (2019) = 1,442,404 X 100= 46.04%

3,132,360

Investment to Total Assets Ratio (2018) = 1,284,975 X 100 = 45.82%

2,803,886

Investment to Total Assets Ratio (2017) = 1,296,537 X 100 = 41.62%

2,511,452

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Interpretation:

In year 2017, its total investments are Rs. 1,296,537, in 2018 amounting to Rs. 1,284,975
and in 2019 amounting to Rs. 1,442,404

There has been a rise of 41.62%, 45.82%and 46.04%in the years of 2017, 2018 and
2019 respectively due to the efficient management.

Debt to Equity Ratio:

Debt-Equity Ratio = Total Debt

Stock Holders’ Equity

Debt-Equity Ratio (2019) = 2,893,138 = 135.98

21,275

Debt-Equity Ratio (2018) = 2,592,825 = 121.87

Debt-Equity Ratio (2017) = 2,331,776 = 109.60

21,275

Interpretation:

The debt-equity ratio has been slightly increased in 2019. As compared to year, 2018 and
2017, .which means company pay more to his shareholders in 2019

Debt to Assets Ratio:

Debt to assets ratio = Total Debt

Total Assets

Debt to Assets Ratio (2019) = 2,893,138 = 0.92

3,132,360

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Debt to Assets Ratio (2018) =2,592,825 = 0.9=2

2,803,886

Debt to Assets Ratio (2017) = 2,331,776 = 0.92

2,511,452

Interpretation:

The Debt to Assets ratio in 2019 is the same as compared to 2018 but as compared to
2017, there was very small decrease in ratio. Both Debt and Assets are increasing at the
same rate.

Net Profit Margin:

Net Profit Margin = Profit after Taxation X 100

Total Revenue

Net Profit Margin (2019) = 15,810 X 100 = 5.73%

275,677

Net Profit Margin (2018) = 20,015 X 100 = 10.74%

186,218

Net Profit Margin (2017) = 23,028 X 100 = 14.93%

154,137

Interpretation:

The net profit margin of NBP has also shown as fall to 5.73% in 2019 as compared to
10.74% in 2018 and 14.93% in 2017.This signal towards lower total revenues of the
Bank during 2019.

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Return on Assets

Return on Assets = Profit before Taxation X 100

Total Assets

Return on Assets (2005) = 275,677 X 100 = 8.82%

3,124,389

Return on Assets (2006) = 186,218 X 100 = 6.65%

2,798,566

Return on Assets (2007) = 154,137 X 100 = 6.15%

2,505,321

Interpretation:

The return on assets has improved to 8.82 percent in 2019 as compared to 2018 and
2017. While the assets of the Bank are not using efficiently because the return is very
low as compared to Total Assets.

Assets Turnover Ratio

Assets Turnover Ratio = Total Revenue

Total Assets

Assets Turnover Ratio (2019) = 275,677 = 0.088 times

3,124,389

Assets Turnover Ratio (2018) = 186,218 = 0.066 times

2,798,566

Assets Turnover Ratio (2017) = 154,137 = 0.061 times

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 2,505,321

Interpretation:

The assets turnover ratio in 2019 is increased to 0.088 times as compared to 0.066 times
in 2018 and 0.061 times in 2017. It indicates that the bank is using the assets efficiently
as compared to previous year.

2.6.2 Vertical Analysis

Vertical analysis formula=Amount of individual item/Amount of base item) × 100

Financial Position 2019------% 2018-----% 2017------%

Assets
Cash and balances with 9% 9% 6%
treasury banks
Balances with other banks 0% 0% 1%
Lending to financial 5% 4% 1%
institutions
Investments – net 46% 46% 52%
Advances – net 32% 33% 30%
Operating Fixed assets 2% 2% 1%
Deferred tax assets - net 0% 0% 0%
Right of use assets 0% 0% 0%
Other assets 5% 6% 9%
Total Assets 100% 100% 100%
LIABILITIES
Bills payable 1% 0% 1%
Borrowings 15% 14% 14%
Deposits and other accounts 70% 72% 69%
Liabilities against assets 0% 0% 0%
subject to Finance Lease
Lease liability against right 0% 0% 0%
of use assets
Deferred tax liabilities 0% 0% 0%
Other liabilities 6% 6% 9%
Total Liabilities 93% 93% 93%
Net Assets 7% 7% 7%
Vertical analysis of the Origination Financial Position depicts higher
concentration levels of investments and advances in the asset base of the

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Industry. Vertical analysis is useful in comparing performance between
entities.

2.6.3 Horizontal Analysis

Horizontal Analysis formula = (Amount in comparison year – Amount in base year)

divided by Base year, multiply by 100

Financial Position 2019----% 2018% 2017%

Assets
Cash and balances 18% 55% 0%
with treasury banks
Balances with other 8% -54% 91%
banks
Lending to financial 35% 295% -78%
institutions
Investments - net 12% -1% 44%
Advances - net 9% 25% 11%
Operating Fixed 1% 65% 0%
assets
Deferred tax assets - 0% -100% 42%
net
Right of use assets 100% 0% 0%
Other assets -2% 22% 96%
Total Assets 12% 12% 25%
LIABILITIES
Bills payable 100% -25% 30%
Borrowings 20% 9% 703%
Deposits and other 9% 16% 4%
accounts
Liabilities against 0% 100% 43%
assets subject to
Finance Lease
Lease liability against 100% 0% 0%
right of use assets
Deferred tax 56% 100% 0%
liabilities
Other liabilities 8% -26% 92%
Total Liabilities 12% 11% 27%
Net Assets 12% 18% -1%

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2.7 SWOT Analysis
2.7.1 Strengths

A SWOT analysis of the power sector’s strengths identifies features inside the industry
that are a positive sign. These features need to be representative of areas over which the
industry has a high degree of controlSome of the strengths of the Reahma power
Generation (PVT) Ltd. sector include:
 Rising rate of investment in renewable energy

 Established infrastructure

 Increased adoption of better and energy-efficient technology

2.7.2 Weaknesses:

In SWOT analysis, weaknesses help identify features inside the industry that are

low-performing or inefficient.   Some of the weaknesses of Reshma power
Generation (PVT) Ltd. sector include:

 Growing demand for energy

 Rising costs of electric grids
 Employee attrition
2.7.3 Opportunities:

Companies in the power sector can identify various goldmines for growth using
the SWOT analysis. The growing rate of data collection and exchange are opening
new doors of opportunities in the energy industry. Opportunities are present all
along the power-industry value chain, from generation to customer relationship
management. Some of the key opportunities for Reshma power Generation (PVT)
Ltd include:
 Increased tax incentive for energy-efficient automobiles
 Seasonal increase in the number of days of sunlight
 Lifted bans on off-shore drilling.
2.7.4 Threats:

A SWOT analysis of the power industry’s threats shows features outside the industry that
are potentially hazardous to continued growth. They are often outside the control of the
power sector companies. Presently, due to the sector’s social and economic impact,
companies in the industry are under constant pressure to improve their efficiency and
attain greater cost competitiveness. The main threats facing Reshma power
Generation (PVT) Ltd include:

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  Compliance and regulatory risks 
 Uncertainty in climate policy and carbon pricing 
 Commodity price volatility

2.8 Critical Analysis

Internship gives me the exposure to the world by meeting and dealing with the different
kinds of people every day, which has given boost to my confidence and experience, so
the first of you enter in organization for internship for job most important thing is your
communication skill. Therefore, which thing helped me boosts my confidence was m y
communication skill. As we have studied in our course about communication skill and
presentations during BBA gave me the confidence to speak with the employees and
customers and communicate effectively and efficiently with the customers similarly as in
internship we told about the importance of the customer I observed it in my internship. In
my observation, I have seen how the manager and other employees deal the customers.
As a student, it was best opportunity for us to study the behavior of employees inside the
organization, their dealing with the customers and relationship between them and
employees as all these things we only studied in the organization behavior and HRM. We
can say that internship the practical implementation of entire course, which we have
studied in BBA.

CONCLUSION& RECOMMENDATION
Conclusions

DOE is strategic planning objectives for coal technology RDD&C currently

extend only through the year 2010, even though coal will continue to be a major
source of energy well beyond that period.
The most important strategic objectives for coal RDD&C programs are to support
the development of (a) advanced coal-based electric power systems that are
considerably more efficient and cleaner than current commercial systems and
which will be needed beginning in the near to mid-term; and (b) advanced coal-

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based fuel and coproduct systems that can be used to replace conventional oil and
gas in the mid- to long-term periods.

Coal preparation is a highly developed, commercially available technology that is

widely used in the coal industry but that offers only limited opportunities for
R&D to significantly lower the cost of advanced coal preparation processes.
Continued research with extensive industry participation should achieve further
improvements in existing and emerging technologies.
There may be opportunities through sustained fundamental research on cleaning
processes to improve the environmental acceptability of coal.
Given the mature status of technologies for the production and use of coal-liquid
mixtures and the very limited market for these mixtures, no further development
by DOE appears necessary.

Recommendations

Following are the main recommendations according to the problems of Reshma Power
Generation (PVT) Ltd. that they are facing today’s business. These recommendations are
most important for Reshma Power Generation (PVT) Ltd. for handling problems.

Customer Complaints Reduce

Customers are most important element for any organization.so that Reshma Power
Generation (PVT) Ltd. Is trying to reduce customer complains than they increase their
profits. And profit comes from customer.so that they are trying to provide high quality
services to its customers. These services fulfill the requirements of customers. For this
purpose bank increases the motivation of employees on job of customer relationship.

Promotion and Reward System

Reward system is the most important for the motivation of the employees of any
organization. Every reward is given on the basis of the performance of employees. And
rewards are given on justice base otherwise this system does not work well.

Planning and Proper Training

Planning and proper training plays an important role in success of an organization.so that
the Reshma Power Generation (PVT) Ltd. make proper planning for investment and
customer care so that their profits are increases.

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Reduce Technological Breakdowns

Technology is most important in the growth of banking organization. Because online

baking is totally depends on technology so Reshma Power Generation (PVT) Ltd.
Should reduce technology break down for increasing profits and growth.

DOE should implement a technology R&D program that addresses the control and use of
dilute coalbed methane gas streams in response to EPACT requirements.
Reduce stress of Employees

For the success of the organization, the stress environment should be reduced. When the
employees have no stress their performance also increases and vice versa...

Improve Website

The website is the best source of information for the public so the Reshma Power
Generation (PVT) Ltd. also improve their website for their customers.in this way the
customer can easily get all information.

Manage the Staff

The staff is also need for achieve the high level of performance. So that
employees are hiring that, meet the current requirements of customers. Highly
qualified staff needs to manage so profits increases.

Strategic Planning

Strategic planning goals for the performance and cost of coal cleaning processes
should define clearly the supporting role of coal preparation in
DOE's programs in advanced power generation and fuels production, thereby
focusing R&D activities.

References
Primary Data Collection

Collected from manager Mr. Asif Hussein Reshma Power Generation (PVT) Ltd.

Secondary Data Collection References

www.Nepra.org.com.pk

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www.arco-energy.com

www.wipipedia.com

Logo for Reshma Power Generation (PVT) Ltd.

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