1

st
Week
EXECUTIVE SUMMARY
PSO - Energizing the Nation
In order to progress, every country requires a proper source of energy, to strengthen and energize
all the sectors responsible for development Pa!istan State Oil, the largest energy company of
Pa!istan, is fuelling all the ma"or sectors including automotive, aviation, rail#ays, po#er
pro"ects, industries and agriculture sector, thus steering the national economy to#ards progress
and stability
$rom %arachi to %hyber, PSO is effectively fulfilling the responsibility of driving the nation
to#ards gro#th and development
&ccording to one report Pa!istan is on '(
th
number in the oil import &nd they are on the ))
nd

number in the consumption in #orld ran!ing *otal oil production in Pa!istan is +,,,-. barrels
per day, and the total country/s consumption is '(0,... barrel per day and net import of the
country is )1.,+.. barrel per day
Pa!istan state oil is largest mar!eting oil company in Pa!istan and also among the top 2...
largest companies in &sia Pa!istan state oil #as set up in 3ecember )1
th
21-+ through the
merger of ESSO underta!ing #ith the Pa!istan national oil limited 4PNO56 and premier oil
company limited 4PO756
In this report #e have summarized all our #or! #hich #e have done till no# during our
internship period 8e have been in &ccount Payable 3epartment, #here #e dealt particularly
#ith revenue 9 capital related payments 8e also learnt about other miscellaneous payments 9
2
ho# the cheque is finally prepared for the vendors 9 the trac!ing system they have for theirs
payments to !eep chec! on the processing time period of each bill by different concerned
departments
PAKISTAN STATE OIL:
)
PSO is the market leader in Pakistans energy sector. The company has the largest network of retail outlets
to serve the automotive sector and is the major fuel supplier to railways, power projects, armed forces
and agriculture sector. PSO also provides Jet uel to !efueling acilities at " airports in Pakistan and ship
fuel at # ports. The company takes pride in continuing the tradition of e$cellence and is fully committed to
meet the energy needs of today and rising challenges of tomorrow.
Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in storage,
distri%ution and marketing of various PO& products. The companys current market share of '(.#) in the
%lack oil market and *".+) share in the white oil market, alone speak volumes a%out its success.
Chronology of Events le!"ng to the for#t"on of:
Pakistan State Oil Co. Ltd. (PSO)

.2-.2-21-( $ederal :overnment ta!es over management of PNO 4Pa!istan
National Oil6 and 3P5 43a#ood Petroleum 5imited6, renamed into
PO75 4Premier Oil 7ompany 5imited6 under mar!eting of
Petroleum Products 4 $ederal 7ontrol 6 &ct, 21-(

.'-.+-21-(
:overnment incorporates ;Petroleum Storage 3evelopment
7orporation; PS37

)'-.,-21-+ Name of PS37 changed to State Oil 7ompany 5imited 4SO756

20-.1-21-+
:overnment purchases ESSO <nderta!ings, vests their control in
SO75

'.-2)-21-+ :overnment merges PNO and PO75 into SO75 4State Oil
7ompany 5imited6 and names it as Pa!istan State Oil 7ompany
5imited 4PSO6
I#$ortn%e Of Co#$ny &"th"n In!'stry :
It #ould not be #rong to say that =PSO/ is having a brand and loyal image in the industry On the
basis of this brand image #e can have an idea about the ran!ing and positioning of >Pa!istan
'
State Oil 7ompany? in the industrial sector =PSO/ has been serving the entire industrial sector in
Pa!istan since 21-2 &s positioning of company #ithin mar!et is a means to target a customer
So #e can say that =Pa!istan State Oil/ is no doubt having the useful and simplest tool to the
mar!eters in the industrial sector *he importance of the =PSO/ in industry is due to the fact that
it al#ays launches a product according to specific requirements of a particular industry So in
this #ay =Pa!istan State
Oil =is having more loyal customers that they never s#itch to another company *he important
point is that importance of any organization is related to its perception *he positioning basically
is the perception of products and services in the minds of consumer
&nd the perception differs from person to person, #hat you thin! about the quality and value, I
may not favor that $or e@ample you may go in favor of usage of =7N:/ because your perception
of that product is e@cellent but I may not favor that, as my e@periences of that particular product
are not #ell and good *he importance of >Pa!istan State Oil >in the industry becomes obvious
#hen #e tal! about the different industrial products #hich they are offering in the mar!et *he
most popular products of >Pa!istan State Oil? #hich are used in bul! amounts by the industrial
areA !erosene oil, furnace oil, lubricants and diesel =PSO/ is the largest lubricants mar!eting
company in Pa!istan *he ma"or consuming industries for =PSO/ products areA sugar mills, steel
mills, edible oil mills, independent po#er plants 4IPP/s6 and paint industry
(
7ontinuous gro#th
PSO continues to e@pand its physical, technical and mar!eting resources to meet the
requirements of the country *o !eep pace #ith gro#th, PSO has maintained International
7ollaborations to import latest technology *hese areA
2 7astrol 4<%6 Blending and mar!eting of lubricants in Pa!istan
) &ir *otal 4$rance6 *echnical and 7ommercial agreements in &viation Services
' E@@on 7hemicals 4Singapore6 Petrochemical Business &nd *echnology
Cission statement
*o ensure availability and security of sustainable supply of oil and gas for economic
development and strategic requirements of Pa!istan and to coordinate development of natural
resources of energy and minerals
Strategy to achieve mission
*o adopt an integrated approach for promoting e@ploration and fast trac! development of oil, gas
and mineral resources *o deregulate and liberalize and privatize oil, gas and mineral sector
through structured reforms *o attract private investment and to establish credible institutions for
facilitating the development of petroleum and mineral sector *o develop technical professional
human resources *o optimize e@isting energy delivery infrastructure oil and gas pipelines *o
reduce imported fuel oil consumption #ith indigenous gas by optimally balancing the gas
availability and supplies from local and imported resources
0
Pattern of holdings of the shares held by the shareholders
Pattern of holdings of the Shares held by the Shareholders (%)
7ategories of
Shareholders
211+ 211- 211, 2111 )...
Individuals 200, 2((2 2')) 2+2- 2+',
Investment
7ompanies
.+) .0) .0) .'- .).
Insurance 7ompanies (21 '+- ')+ '-+ '+'
Doint Stoc!
7ompanies
.1' .-1 .,+ )2' )),
$inancial Institutions
and Ban!s
''0( '22+ ),'- ')+0 ('-'
Codaraba
7ompanies
..0 ..) ..) ..+ .)0
$ederal :overnment )002 )002 )002 )002 )002
Securities and
E@change
7ommission of
Pa!istan
... ... ... ... ...
&bandoned
Properties
Organization
.(, .(, .(, .(, .(,
7haritable
Institutions
.)+ .)+ .)+ .)- .),
$oreign Investors 2,,( )'2, )-0. 2,+. -)+
+
2
ND
WEEK
$unctional departments of PSO
i Car!eting 3epartment
ii $inance 3epartment
iii Supply 9 3istribution 3epartment
iv Operations 3epartment
v Information System 3epartment
vi Euman Fesources 3epartment
vii *raining 9 Organizational 3evelopment 3epartment
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Car!eting 3epartments of PSO
Being the largest oil mar!eting company, PSO has the follo#ing mar!eting departmentsA
2 Fetail
) Industrial consumers
' &viation 3epartment
( 7ompressed Natural :as
0 5iquefied Petroleum :as
+ 7hemicals
- Carine
Fetail
*he basic concern of this department is #ith petrol pumps *o enhance the sales of petroleum
products in already e@isting petrol pumps and to install ne# one are its ma"or ob"ectives It gives
certain targets to o#ners #hich they have to achieve in a certain time period *he ',.0 outlets all
across the country are supported by storage depots #hich are being facilitated by the product
movement through tan! lorries, rail#ay tan! #agons and pipelines *he ma"or policy of this
department these days is the ne# vision program of outlets It ma!es the decision of ne# vision
on the basis of some factors li!e location of outlets, potential of sales area, e@isting sales,
competitors/ strong hold etc *here are three #ays to bring the outlets in ne# vision *hese areA
2..G contribution by company
0.G contribution by company
2..G contribution by dealer
Being the government organization, previously there #ere restrictions on ne# visions of outlets
but as Shell International initiated this policy, it became a necessity for PSO to ta!e this step
So the retail department is actively participating in distribution, storage and in ne# vision
programs
,
Industrial consumers
PSO is playing an equal important role in industrial sector *his department deals #ith mar!eting
of products li!e furnace oil, !erosene oil, high speed diesel, lubricants, petrol etc for Independent
Po#er Plants 4IPPs6, 8apda, &rmy, Fail#ays, Sugar mills etc $rom the locomotives of Pa!istan
Fail#ays to the giant turbines of po#er pro"ects, all are fueled by PSO Being fully alive to the
responsibilities to#ards the agricultural sector PSO/s -.. strong agency net#or! helps !eep the
farm machinery running &rmy needs of ES3 and lubricants are also under its responsibility
$urther, its !erosene sales are a ma"or source of energy for the rural and lac!ing gas facilities
&viation 3epartment
PSO remains equally strong in &viation and Bun!er Sales PSO has been constantly upgrading
its facilities to serve a #ide range of commercial aircraft *hrough a chain of eight &viation
Service Stations scattered all across the country PSO fuels the aircraft of many local and
international airlines &cquisition of ne# 5ahore *erminal 7omple@ at the 5ahore International
&irport has enabled PSO to serve the busiest corridor of EastH8est bound flights benefiting the
airlines in shape of time saving and lesser fuel burn off 8hile it/s bun!ering facilities at all the
ma"or ports of country fill up the ocean liners of many nationalities facilitating the nation/s
international trade

7ompressed Natural :as 47N:6 3epartment
*his department is concerned #ith promoting the use of 7N: in vehicles *his use is being
encouraged to reduce the pressure on petroleum imports, to curb pollution to improve the
environment *he e@isting price differential bet#een 7N: tariff and motor gasoline #ill be
maintained as an incentive for 7N: use *his department is ma!ing efforts to e@empt the import
of 7N: machinery, equipment, conversion !its, 7N: cylinders etc from duties and sales ta@ for
a period of five years &lso efforts have been going to eliminate double ta@ation in the form of
e@cise duty on 7N:
5iquefied Petroleum :as 3epartment
5P: is filled in cylinders at high pressures PSO started mar!eting of 5P: in 21,2 in South area
4%arachi6 No# all three refineries are producing 5P:
*he :overnment has ta!en a bold and far-reaching initiative and liberalized integrated
infrastructure pro"ects of 5P:, free from government guarantees and permission No# all
credible 5P: companies are free to develop integrated pro"ects of 5P: import terminals, storage
1
facilities, inland transportation, storage depots and retail mar!eting H distribution #ithout
requiring any guarantees or permission from government e@cept the mar!eting license #hich
#ould be issued #ithout any difficulty In Pa!istan there are different mar!eting companies of
5P: li!e Pa! :as 4PSO6, $on :as 4$au"i $oundation6 , Sui Northern :as , 5ube :as and Sun
:as etc No# this department of PSO is actively dealing #ith the purchase and supply of 5P:
cylinders for household and commercial purposes
7hemical 3epartment
*his department is engaged in the business of chemicals derived from petroleum called
petrochemicals Cost of the chemicals are imported in bul! and some are manufactured in
refineries these chemicals are imported from Europe , Ciddle East etc through ships , 5ocal and
imported chemicals are supplied to various industries for their chemical needs *hese chemicals
include toluene, methyl , benzene, polyol, he@ane used in edible oil mills, solvent oil used in
paint industries etc
Carine 3epartment
*he basic purpose of this department is to fulfill the needs of shipping firms *he refueling of
ships is done through this department Supply of lubricants to shipping corporations is also done
through this department $or marine department, the government has fi@ed the prices and o#ing
to high prices of oil, share of this department is nominal Supply is made available through
pipelines, tan! lorries and barges 4ships6*his department sells furnace oil, 53O and ES3 to
%arachi port
2.
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C&F%E* SE:CEN*&*ION
Diesel
Basis for the mar!et segmentation for hi-speed diesel areA
Engine Power
Cotor Iehicles aboe 1!"" ##
$eogra%hy
Car!et is divided into Fural 9 <rban areas, #here placement and promotion policies differ On
rural areas selling is through oil agencies and in <rban areas placement is through petrol pumps
&n#o'e
*he other base of mar!et segmentation is income aA
Iehicles and machines #hich consumes Ei-speed diesel are usually involved in commercial
activities So, people involved in such !ind of business belong to middle-middle class and above
Car!et segmentation for petrol
(arket for %etrol is seg'ented on the basis of following.
Engine Power
Iehicles or machinery having engine po#er below 1""" ##.
&n#o'e
On income basis, there are basically three groupsA
2 5o#er Ciddle
) Ciddle Ciddle
' &bove Ciddle
Lower (iddle
In this social close people #ho are having vehiclesHmachinery from 4(1 cc to 2.. cc6 #hich
includes Iespa- motor- cycles
22
(iddle (iddle Class
Includes those people #ho are having small cares li!e 4Suzu!i, 7harade, Santro etc6 means, they
are used to travel by these vehicles mostly #ithin the city *hose people have income group
#hich can be classified as middle class
)boe (iddle Class
*hen those people #ho are having vehicle that can be classified a lu@ury vehicle
4Pa"ero, Deeps, 5imousine, Cercedes6
*oyota 45atest Codels6, Eonda 4etc6
Car!et segmentation for :*J Cobil oil
*he segmentation of :*J Cobil oil has been done on the basic of consumption level #hich is as
follo#sA
1. Light *sers
light users include those people #ho have vehiclesHmachinery that consume Cobil oil from 42
liter to ( liters6 i-e Cotorcycle and Fic!sha# K generators 45ight6
+. (edio#re *ser
Includes those user #ho are having vehicleHmachinery that consumes 4( liter to 2) liter6 Cobil
oil ie small ears and light machinery
!. ,eay *ser
Includes those user #ho are heaving vehicles and machinery, that consumes more than 2) liter,
#hich includes heavy transport, truc!, buses loaders, road rollers, tractors and industrial units
2)
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PSO s SAP 'ser:
Over the course of three decades, S&P (Software )%%li#ations %rod-#t) has evolved from a
small, regional enterprise into a #orld-class international company *oday, S&P is the global
mar!et leader in collaborative, inter-enterprise business solutions *he company no# employs
more than 02,0.. people, #hose commitment and innovative spirit pace our future success S&P
is databases that record all the transaction In Pa!istan there is only one official trainer, Siemens
PSO introduce S&P in )..0, I have been brief about S&P by my supervisor Eo# to record
certain transaction #hether it is sell transaction or received transaction S&P is very informative
soft#are though it is difficult for me to get !no#ledge about all the application of soft#are but
my supervisor Ciss Saba 9 Sir Imtiaz gave us information about the process to record the
transaction of revenue 9 capital related payments
2'
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+INANCE ,EPARTMENT:
$ollo#ing are the main sub-departments #ithin the $inance functionA
&./E0.)L )*D&/
P0OD*C/ )CCO*./S
/0E)S*01
)CCO*./S P)1)2LE
30E&$,/ POOL
$E.E0)L )CCO*./S
C0ED&/ CO./0OL
E4C&SE5C*S/O( ).D S)LES /)4
S,)0ES
3&.).CE C)0DS
3&.).C&)L 0EPO0/&.$
ACCOUNTS PAYA-LE:
&ccounts payable is responsible for maintaining a sound 9 fla#less system of payment 9
reimbursement ensuring that no employee or third party gains an e@tra advantage or is being
overloo!ed &P section provides proper guidelinesHprocedures according to #hich the payment
process is being maintained
2(
PEP0)6
Public Procurement regulatory authority ensures that all the payments done in :overnment
organizations are under its provisions 9 do not cross the limitations 9 it monitors all the
purchasing done by them so that nothing is done unacceptable thereon
Specifically &P/s role #ould beA
2- *o generate reports regarding employee benefits 9 reimbursements
)- *o maintain a sound system of petty cash #ithin PSO
'- *o maintain ta@ e@emption records
(- *imely preparation of cheques
0- *o maintain records of payments made against different ban!s
ESSE./&)L DOC*(E./S 0E7*&0ED 3O0 ) 2&LL6
P-r#hase Order6
Original Bill
Original 3elivery 7hallan
:S* Invoice #ith vendor sign 9 stamp
$or duplicate bill to be treated as original, <nderta!ing required by vendor 9 :C
signature
$or duplicate 3elivery 7hallan to be treated as original, :C sign required
Par!ing required in S&P #ith proper ta@ codes
PF7-)( required #ith partial payments 9 a sign of 3:C if its less than amount of
0..... other#ise of :C
:C signature for all the bills related #ith first 9 final #or! orders
7hange order required for late completion of #or! else penalty #ill be deducted
20
SE08&CE O0DE06
Original Bill
PF7-)( required #ith partial payments 9 a sign of 3:C if it/s less than amount of
0..... other#ise of :C
:C signature for all the bills related #ith first 9 final #or! orders
7hange order required for late completion of #or! else penalty #ill be deducted
Par!ing required in S&P #ith proper ta@ codes
Dob 7ompletion certificate required
)##o-nts %ayable is diided into following ! areas6
2- Employee related reimbursement
)- Iendor payments
'- Other Ciscellaneous Payments
19E(PLO1EE 0EL)/ED 0E&(2*0SE(E./6
*his &P process constitutes of the follo#ing sub-processesA
*raveling allo#ance 4local 9 foreign6
&uto loan e@pensesHrunning allo#anceHcar allo#ance
7orporate cards bills processing
7ellular bills processing
Cedical e@penses
Petty cash 4PSO EO<SE6
Feporting
2+
+98E.DO0 P)1(E./S6
*his &P process constitutes of the follo#ing sub-processesA
7apital H revenue e@penditure
7apital commitment
Caintaining :$F related payments
Caintaining of schedule
Settlement run
!9P)1(E./S6
*his &P process constitutes of the follo#ing sub-processesA
C7S 2. payments
Petty cash 4up country6
Processing of vendor forms
Feissue of chequesH demand draft
*a@ payments
<tility bills payments
Employee monthly deductions
Fent received by &P5
Fefund of draft from I7 lube
0E8E.*E P)1(E./S6
*hese payments are made against the follo#ing modules in S&PA
2 Payments through CC module
) Payments through $I module
2-
3& 'od-le %ay'ents6
3one through par!ingHposting of items that do not have POHSO against them
L-post transaction is used for their posting
$I modules payments par!ing M starts #ith 21
&pprovals based
It normally includes follo#ing billsA
Brand
5egal
Cedical
* 9 O3
EF
7orporate communication
7SF
5S&*
I*
&viation
&dmin
Protocol
7ards
PFO7ESSA
Bill submitted by vendor to PSO
7oncerned department then ta!es necessary approval as per 5&C 9 par!s it in S&P
&fter receiving the bill, &P verifies the same 9 posts the document in S&P through L-
Post transaction
2,
7heque is then prepared 9is dispatched to the vendor
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C.E/UES PREPARATION:
7heques need to be prepared for all the bills posted by treasury, product accounts, insurance,
payroll, general accounts, financial reporting, credit control 9 billing 9 accounts payable
department itself
21
P0OCED*0E O3 C,E7*ES P0EP)0)/&O.6
2- Bills are received by the e@ecutive after posting form accounts payable section 9 duly
approved payment vouchers, as per 5&C, are received from different departments of
PSO head office
)- & S&P application for automatic payment is run #hich produces all the posted bills
upfront
'- *he posted bills on S&P are verified from the manual bills
(- &fter verification a run is initiated 9 a do#nload file is do#nloaded on S&P #hich is
integrated #ith the ban! soft#are
0- *he do#nload file generates a te@t file of all the bills approved for preparation of cheques
#hich then for#arded to signatory authorities for approval
+- Ban!s have given certain individuals the signatory authority in order to approve the te@t
file *ogether #ith the digital signature on te@t file the batch printout is also signed
-- &fter approval by the t#o certain signatory authorities as per 5&C the file automatically
is received by the ban!
,- *he ban!s issue cheques #hich are then received by the &P section that dispatches the
cheques
1- & return file, generated by the ban! regarding all the cheques made for payments, is
received by e@ecutive #ho uploads it on S&P
2.- 7ertain cheques are prepared #ithin PSO head office for bills of open items or for
e@penses for #hich payment needs to be made on an urgent basis
22- 7heques for fund transfer are also made manually as they differ in size 9 cannot be
generated by the system
2)- *he ne@t day all the manually generated cheques are updated on the system
E0 LO11IN1:
E-5ogging is an electronic process to trac! the bills *his process is aimed at facilitation for
vendors #ith regard to trac!ing of their submitted bills 4both local and upcountry6
).
Once after submitting the bill, the vendor does not e@actly !no# #here their bills are or their
status *o ease the vendors #ith trac!ing their bills status, the process of E-logging is proposed
to be implemented
:19 CL)*SE6
E-logging system is generated according to Ppra/s (2 clause that says payment to vendor should
be done #ithin '. days other#ise he has the right to file a suit against the payer
Pro#ess6
& separate bill receiving unit #ill be created by the name of 7EN*F&5 BI5 FE7EIIIN: <NI*
47BF<6 for the purpose of E-5ogging *he purpose of 7BF< is to receive the bills from the
vendor and prove to be an intermediary bet#een the different departments
*he vendor #ill submit the bills at PSO head office in 7BF< in the first half Eo#ever, #hen
submitting the bills, the vendor should ensure that the follo#ing basic details are mentioned on
the documentA
2 Iendor code
) 3ate of bill
' Name of concerned department to #hich bill is to be submitted
Once the bill is received by the 7BF<, it #ill return one stamped copy to vendor and
retain the original stamped copy for on#ard submission to the indenting department
7BF< #ill sort the bills according to the departments, prepare a summary and dispatch
them to focal person in the relevant department
On receipt the focal person #ill ac!no#ledge the bills by stamping the summary copyN
simultaneously 7BF< #ill log the same in the system
*he $ocal person in indenting department #ill send the bill to concerned person for
necessary verification, par!ing and approvals
If certain documents are missing or there is any ob"ection #ith the bill, bill #ill be sent to
7BF< from #here the concerned vendor #ill be called to resolve the query Eo#ever if
the bills are verified approved and par!ed, the indenting department #ill directly send to
focal person in &ccounts Payable Section 4&PS6 for payment &c!no#ledgement is
obtained from &PSN simultaneously this movement of bills is also logged in the system
)2
*hen focal person in &PS send the bill directly to concerned person for processing the
bill #ith concern department email detail $urther, he #ill also indentify the name of
concerned person in indenting department from #hom bill is received after verification
If any ob"ection is raised by &PS, then &PS #ill send the bills #ith ob"ection to
concerned person in indenting department *his #ill be logged in the system
Once the ob"ections are cleared, the bills #ill again be sent to concern person in &PS
&PS #ill again rechec! the bills for all relevant approvals and completeness of
documentation and post them in S&P and hence update the status in the system
Ne@t bills #ill be sent to the ban! for cheque processing
&s soon as the prepared cheques are ready to be dispatched at PSO, ban! #ill send a
system generated message to vendors mobile
In the end, a *EJ* $I5E #ill be sent to PSO through email from the ban! system #hich
includes the cheque details *he file #ill be updated on the S&P *he same file can also
be used to provide a lin! bet#een the S&P and E-5O::IN:
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))
A1REEMENT +OR .IRIN1 AN,
MANA1EMENT O+ SALES +ORCE AN,
PROMOTION O+ PRO,UCTS
2rand 2rigade6
What is Co'%any of 2rand 2rigade abo-t;
Brand brigade is a company that has the e@pertise of advertising a company/s products as it has
the requisite facilities, personnel and all necessary permissions for the promotion of the products
What is the %-r%ose of agree'ent between brand brigade and PSO;
*he sales of PSO lubricants #ere running quite lo#, therefore PSO hired brand brigade in order
to raise the sales
/he date of agree'ent6 <
th
Se%te'ber +"1"= >ara#hi
PSO
S#o%e of agree'ent for PSO6
Brand brigade #ill hire the #or! force, manage the sales and mar!eting team, infrastructure and
related activities for promotion of PSO products in all the sales channels PSO Product
5ubricants
S#o%e of agree'ent for brand brigade6
Brand brigade is supposed to consult, comply and implement all the directions and instructions
of PSO #hich are related to the agreement, ie promotion of the product, li!e planning, hiring,
managing of sales and mar!eting
Standard of seri#es of brand brigade6
Standard of services rendered by brand brigade should be of highest in the industry and services
should be rendered #ith full efficiency
)'
Personnel6 &ll personnel used for promotion of PSO products should be brand brigade/s
personnel and not of PSO
Brand Brigade should be responsible for its o#n personnel in every #ay li!e for their salaries,
benefits and termination benefits
Brand Brigade should abide by all la#s applicable to it as an employer and brand brigade/s
personnel should abide by all la#s applicable to it as an employee
D$( /rade and distrib-tion and 5 or $( L-bri#ants and agen#y trade of PSO sho-ld sign
a written a%%roal6
Brand brigade should do the selection of the managing and sales team relating to the
agreement, #ith an approval of PSO as #ell, #ith a selection committee comprising
minimum t#o members from each party
Payment of #ages of employees relating to this agreement should be approved by PSO
*he termination of employees/ services should be approved by PSO 4*ermination of
services of employees should be done if employees are not #or!ing in the interest of the
agreement6
If PSO requires terminating an employee due to dissatisfactory services, Brand brigade
should do termination
&ny item being purchased for a promotional campaign should be approved by PSO
PSO shall pay the fees and e@penses, #hich are related to the agreement
Feimbursement of salaries of Brand brigade employees, related e@penses and related
service fees shall be made #ithin 2. days of receipt of invoice from brand brigade *he
payment of other e@penses and related service fees shall be made #ithin 20 days of
submission of the invoice and after due verification by PSO of the invoice or vouchers
submitted by brand brigade
Brand brigade on letterhead invoice should request overhead e@penses and
reimbursement paymentA brand brigade should all documents related to overhead
e@penses #ith PSO as a proof of actual cost
)(
3ollowing head of a##o-nts shall deter'ine the offi#e oerhead #osts6
1. 0ent
+. *tility bills (Ele#tri#ity= internet and hosting)
!. $enerator 'aintenan#e= ?anitorial and refresh'ents.
:. De%re#iation of offi#e f-rnit-re= fi@t-res and eA-i%'ent.
Brand brigade shall attach supporting documents for all cash based e@penses, #hereas supporting
documents for depreciation shall be purchase bill of assets and rate of depreciation
/he %ay'ent of Oerhead e@%enses shall be %aid as %er the following r-les6
a6 *he Overheads e@penses shall be paid as per actual cost or ma@imum up to Fs)., ...
per seat per month, #hich ever is lo#est
b6 *he services fee 4ie 20G6 shall not be applicable on OE e@penses
Cost6
Individual budgets attached any variation #ithin items to be approved by PSO prior to spending
Brand brigade shall charge 20G service fee 4sub"ect to deduction of #ithholding ta@ at the
applicable rates6 on all e@penses and salaries including those of account management team
D-ration B e@%iry or renewal of this agree'ent6
*his agreement shall be rene#ed for successive periods of one 426 year each #ith mutual consent
of the parties
On the basis of an approval from PSO, Brand Brigade is hiring the services of program
management team, #hich are chargeable *hey are hired for the purpose of this agreement, hence
it be effective from &ug .2, ).2. till the day the agreement ends
)0
Li'itations of the )gree'ent6
It is agreement based and the payments made to Brand Brigade #ere used to be manually
controlled &ccounts Payable 4&P6 section came up #ith the idea of controlling the
reimbursements and payments made to Brand Brigade, electronically through creating budgets
using CS E@cel sheets Electronic control #ould only allo# &P section !eeping a more thorough
chec! over the payments made to Brand Brigade In this case, S&P could not be used to control
as the payments do not have any #or! orders and are done manually
)+
)-
$inancial Eighlights held on Carch ', ).2(
),
3ig-res are &n (illions *nless Otherwise Stated
).2' ).2) ).22 ).2. )..1 ).., )..-
Sales Iolume
4Cillion *ons6
1+.C 2)( 2)1 2() 2') 2'. 22,

Profit D Loss )##o-nt
Sales Fevenue
1=+E:=F"
!
2,211,1)
,
1-(,12- ,--,2-' -21,),) 0,',)2(
(22,.0
,
Net Fevenue
1=1""=1+
+
2,.)(,()
(
,).,0'. -(),-0, +2),+1+ (10,)-1
'(1,-.
+
:ross Profit !C=F"E '(,')' '(,),. )1,2++ ',.2. '.,.)( 2),)01
Operating Profit H 45oss6 +C=1"E 2-,'2' )0,)2- )2,)'' 40,0--6 )),(02 -,10.
Car!eting 9 &dministrative E@penses <=+!F -,0)' +,+1. 0,2,2 0,22' (,()0 ',-(,
Profit H 45oss6 before *a@ 1E="<E 2',+-( 2-,1-( 2-,1+' 422,'0-6 )2,'-- -,2))
Profit H 45oss6 after *a@ 1+=FF< 1,.0+ 2(,--1 1,.0. 4+,+116 2(,.0( (,+1.
Earning H 45oss6 before Interest, ta@es,
depreciation 9 &mortization 4EBI*3&6
+G=<:" )+,(-+ '2,.2- )1,.), 4',1,'6 )',12) 1,().
7ape@ <C" ,1( ,+) 001 +1( +). 2,+.1

2alan#e Sheet
ShareholdersO Equity C1=<<< (1,1+. (2,1.' )1,''+ ).,,-2 '.,1+0 ).,1'1
Non 7urrent &ssets FC=EF+ 1,+') 1,,01 ,,,-0 2(,-') 22,)'2 2),))(
7urrent &ssets ++:=!FC ''-,-1+
)0),,2
0
21','-
'
2',,+1
.
220,,-
1
+),02'
*otal 5iabilities +1E=:+1 )1-,(+,
)).,--
.
2-),12
)
2'),00
2
1+,2(0 0',-1,
)1
$inancial Fatio &nalysis
of $inancial Eighlights
held on Carch ', ).2(
.a'e 3or'-la 0atio &n#rease5De#rease
+"1! +"1+
:ross
profit
margin
:ross
IncomeH
Sale
Operating
profit
margin
Operating
IncomeH
Sale
Net profit
margin
Net
IncomeH
Sale
*otal &sset
*urn over
Sale H *otal
&sset
*otal debt
to asset
*otal
debtH *otal
&sset
*otal debt
to Equity
*otal debt H
*otal
Equity
'.
Feturn on
&sset
Net
IncomeH
*otal &sset
((+G )+.G
Feturn on
Equity
Net Income
H Share
Eolders/
Equity
).)1G 2,2)G
'2
$indingsA
&ccording to our study
P *he system of the #hole company is computerized
P In the #hole organization is using modern technology process and techniques
P &ll of its officers are very co-operative
P *hey are sincere enough to their company
P &ll of them #ere having the strong attachment #ith PSO
P *he employees are committed #ith their duties
P It is one of the biggest oil mar!eting company in &sia
P It has the biggest mar!et share in %arachi Stoc! E@change
P PSO has less developed Fesearch and 3evelopment department
P PSO is having the support of government
')
SuggestionsA
Nothing is perfect in this life so that PSO should also have to improve itself
H &ts sho-ld i'%roe its resear#h and deelo%'ent.
P *hey should improve their services at their retail outlets
P *hey should focus more on their mar!eting activities
P *hey should promote themselves during national events li!e cric!et tournaments
7onclusion
In this #ay, it #as a good chance to get practical e@perience and close loo! of official #or!ing
3uring our pro"ect #e got a prestigious e@posure of business field 8e got a chance to sharp our
interpersonal s!ills and communication s!ills 8e came to !no# ho# to communicate in the
business #orld and attitudes of personnel 8e got confidence to move in the practical field
''