NHA Internship Report

INTERNSHIP REEPORT

NATIONAL HIGHWAY AUTHORITY

Submitted to; Prof. Dr. Muhammad Ehsan Malik . Director IBA

Submitted by; Syed Muhammad Omer MBA2009068

INSTITUTE OF BUSINESS ADMINISTRATION

U N I V E R S I T Y O F T H E P U N J A B

DEDICATION........

“Dedicated to my late father who has always been the

reason for my success; for he knew one thing that every

father should remember that one day his son will follow

his example more than his advice”

ACKNOWLEDGEMENT

Successful people don‟t plan results, they plan only the beginning;

because the right results follow the right beginning and the best

beginning is with the name of ALLAH for whom the words are

bound, knowledge is limited and time is short to express His highness

who bestowed me with potential and ability to complete the

present training and make some contribution towards knowledge.

And I invoke peace for Holy Prophet Muhammad (Peace Be Upon

Him), the torch bearer.

I feel highly privilege to ascribe my gratitude to my all teachers for

their constant encouragement, sincere advice towards the

accomplishment of my report. Without their guidance, I would

never been able to gain the confidence and precision in my work.

I am immensely obliged to all my parents & fellow students and all

the people who guided me in making this report, without whose

considerate attention and interest, it would be difficult for me to

complete this report on time.

I am especially indebted to Mr. Shoaib Ahmed Khan (GM-Audit),

NHA Islamabad and Mr. Afzaal Ahmad Khan (Assistant Director-

Accounts) & Muhammad Nawaz (Accounts Assistant) NHA, Lahore

for their kind and generous help which enabled me to complete my

internship report.

It is my conviction that this learning experience will always be a

source of help in my professional career.

SM OMER

EXECUETIVE SUMMARY

Roads Infrastructure plays an important role in the development of

any country. Established in 1991, National Highway Authority (NHA) is

responsible for developing, operating and maintaining the National

Highway and Motorway networks throughout Pakistan. To enhance

Pakistan‟s competitiveness in the global market, to sustain the high

economic growth achieved in recent years and to make the

country a hub of regional trade, NHA currently is developing a well

integrated network of Highways and Motorways. While planning the

development of roads, it also considers the well-being of individuals

and businesses throughout the country by improving reliability,

quality and access of the highway network.

I started my internship with NHA from the first day of July 2011 till the

last day of August. The environment there was quite new for me. It

was my first exposure to the practical world. My internship schedule

was divided into 8 weeks, in which initial week was for orientation to

all of the departments and rest were spent at the Accounts

Departments working under the Finance Wing. During my whole

internship, I tried my best to put my all of the best energies and

efforts to get fruitful results for the two months time which I spent

over there. And I found my effort worth experience and successful in

achieving my goals & objectives.

TABLE OF CONTENTS

ORGANIZATIONAL PROFILE

National Highway Authority At A Galance .......................................... 02

Introduction To NHA ................................................................................. 03

Establishment ............................................................................................. 03

Objectives Of NHA:................................................................................... 04

Background ............................................................................................... 05

Functions .................................................................................................... 06

ORGANIZATIONAL MANAGEMENT STRUCTURE

Organizational Structure .......................................................................... 07

National Highway Council ...................................................................... 10

NHA Executive Board ............................................................................... 12

Finance Wing ............................................................................................. 13

FINANCIAL STATEMENTS’ ANALYSIS

Financial Statements‟ ............................................................................... 41

Horizontal & Vertical Analysis .................................................................. 76

Financial Ratio Analysis ............................................................................ 84

STRATEGIC ANALYSIS

SWOT Analysis ............................................................................................ 93

Strategic Evaluation Martix...................................................................... 98

TRAINING PROGRAM

Learning & Experience: .......................................................................... 102

CONCLUSION & RECOMMENDATIONS ................................................. 118

A P P E N D I X .......................................................................................... 144

ORGANiZATIONAL

P R O F I L E

I N T E R N S H I P R E P O R T MBA

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INSTITUTE OF BUSINESS ADMINISTRATION 02

N H A A T A G A L A N C E

Established In 1991

Mission

Statement

To secure delivery of efficient, reliable,

safe and environment friendly National

Highway network with the view to

improve quality of life in Pakistan.

Major Activities Construction

Maintenance

Improvement and Operation of

National Highways and Motorway

Network of Pakistan

Core Wings i. Planning

ii. Operation

iii. Construction

iv. Motorways

v. Finance

vi. Administration

Head Office

NHA Head Quarter, Islamabad

Regional Offices i. Lahore

ii. Multan

iii. Karachi

iv. Peshawar

v. Quetta

vi. Abbottabad


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I N T R O D U C T I O N

National Highway Authority (NHA) is a public sector organization

that works under the Ministry of Communication, Government of

Pakistan as an autonomous body.

E S T A B L I S H M E N T

1978 Designation of certain inter-provisional roads as

National Highways.

1979 Establishment of National Highway Board

1987 National Highway Board instructed through a president

directive to direct control over National Highways System

placed under Ministry of Communication.

1991 Establishment of National highway Authority through

legislation. Bill passed as National Highway Act, 1991 into law

by parliament.

2001 Amendment in NHA Act 1991.

o As from the commencement of this act, there shall be

established for carrying out the purposes of this Act, an

Authority to be known as the National Highway

Authority:

o The Authority shall be a Body corporate having

perpetual succession and a common seal with power

to acquire, hold and dispose off property and may by

its name sue and be sued.

o The headquarters of the Authority shall be at

Islamabad.


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O B J E C T I V E S

NHA is committed for developing & improving the communication

and transportation infrastructure of Pakistan to promote trade and

commerce in the country by planning, development, operation,

repair and maintenance of National Highways and Strategic Roads

specially entrusted to NHA by the Federal Government or by a

Provincial Government or other authority concerned responsible for

developing, operating and maintaining the National Highway and

Motorway networks throughout Pakistan. To enhance Pakistan‟s

competitiveness in the global market, to sustain the high economic

growth achieved in recent years and to make the country a hub of

regional trade, NHA currently is developing a well integrated

network of Highways and Motorways. While planning the

development of roads, it also considers the well-being of individuals

and businesses throughout the country by improving reliability,

quality and access of the highway network


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B A C K G R O U N D

The National Highway Authority (NHA) was established in 1991,

through an Act of the Parliament (National Highway Authority Act,

1991) to take over the organization and activities of the defunct

National Highways Board under the control of the Ministry of

Communication, Government of Pakistan for planning,

development, operation, repair and maintenance of National

Highways and Strategic Roads specially entrusted to NHA by the

Federal Government or by a Provincial Government or other

authority concerned.

NHA network is comprised of 11485 Km which is only 4.4% of

Pakistan‟s total road network but carries 80% of the country‟s overall

commercial traffic and thus is the backbone of the economic

stability and progress of Pakistan. The passenger traffic load in

Pakistan is currently shared by roads (90%), rail (8%) and air (2%).

Dependence on road for freight traffic is 95%. The country has

about 7 million vehicles on road growing at 8% annually – projected

to increase to over 40 million by 2030. Transport sector currently

accounts for 11% of the GDP and over 16% of fixed investment. In

short, the road sector has become the backbone of Pakistan‟s

Transport sector and NHA plays a major role in the development of

road sector.


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F U N C T I O N S

NHA is the Custodian of National Highway Assets in Pakistan whose

main functions include;

Advise the Federal Government on matters relating to National

Highways and Strategic Roads.

Frame a scheme or schemes for matters such as construction,

expansion, operation and development of National Highways

and Strategic Roads and undertake work/incur expenditure on

such scheme(s).

Acquire any land in accordance with legal procedure and

obtain and dispose of moveable and immovable property of

interests therein.

Research & development in the field of highways

Procure plant, machinery, instruments and materials required for

its use.

Enter into and perform all such contracts as it may consider

necessary.

Levy, collect or cause to be collected tolls on National Highways,

Strategic Roads and such other roads as may be entrusted to it

and bridges thereon.

License facilities on roads under its control on such terms as it

deems fit.

Determine a building line between which and the RoW it shall

not be lawful without the consent of the Authority to construct or

maintain any structure or make any excavation.

Case studies, surveys, experiments and technical researches to

be made or contribute towards the cost of such studies, surveys,

experiments or technical researches made by any other agency.

ORGANIZATIONAL

M A N A G E M E N T

S T R U C T U R E


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O R G A N I Z A T I O N A L S T R U C T U R E

The organization of National Highway Authority works under the

Ministry of Communication, Government of Pakistan as an

autonomous body. The affairs of NHA are directed and regulated

through National Highway Council and the Executive Board

GVERNMENT OF PAKISTAN

MINISTRY OF COMMUNICATION

NATIONL HIGHWAY AUTHORITY

NATIONAL HIGHWAY COUNCIL

NHA EXECUTIVE BOARD

MANAGEMENT


2009


Dr. Arbab Alamgir Khan

Federal Minister

Ministry of Communications

Chaudhry Saeed Iqbal

Parliamentary Secretary


Mr. Anwar A Khan

Federal Secretary


Muhammad Ali Gardezi

Chairman NHA


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NATIONAL HIGHWAY COUNCIL

The basic function of the National Highway Council (NHC) is to lay

down national policies and guidelines to be followed by NHA in the

performance of its functions. The Council has the power to direct

and regulate the affairs of NHA.

Composition:

The NHC was previously headed by the Prime Minister of Pakistan. In

July 2001, the provisions of the NHA Act, 1991 were amended by the

GoP and the NHC was re-constituted. The revised composition of

the NHC is as given below:-

Minister for Communications, Member

Government of Pakistan

Secretary Finance Division, Member


Secretary Planning & Development Division, Member


Secretary Communications, Member


Highway Construction & Management Professional Member

(Nominated by the President)

Finance & Accounts Professional Member

(Nominated by the President)

Chairman Member

National Highway Authority


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Functions of Highway Council

To approve five year plans and perspective plans, prepared by

the board in consultation with the planning & Development

Division, for the construction, development, repair &

maintenance of National Highways & Strategic Roads specially

entrusted to the Authority by the Federal Government or by

Provincial Government or other Authority concerned.

To consider progress reports of the Authority

To lay down national policies and guidelines to be followed by

the Authority in the performance of its functions

To review and reappraise projects

To approve the annual budget of the Authority


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NHA EXECUTIVE BOARD

The general direction and administration of NHA and its affairs vest

in the Executive Board which may exercise all powers, perform all

functions and do all acts and things which may be exercised,

performed or done by the Authority

Composition:

The revised composition of the Executive Board is as given below:

The Chairman Member


Inspector General, Member

National Highways & Motorway Police

Additional Secretary (Finance Division) Member


Member or Additional Secretary, (Planning Division) Member


Joint Secretary-II, Ministry of Communications Member


Senior Chief, Member

National Transportation Research Center - NTRC

Vice President, Member

National Engineering Services of Pakistan - NESPAK

Member(Finance), Member


Member(Planning), Member



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Functions of Executive Board

To consider and approve proposals, schemes and projects

exceeding fifty million rupees but not exceeding one hundred

million rupees and to consider and recommend, through the

Ministry, to CDWP or ECNEC proposals, schemes and projects

exceeding one hundred million rupees.

To consider progress reports of the Authority.

To perform such other functions as may be delegated to it by

the NHC.

To recommend for approval the annual budget of the

Authority.

To approve projects to be funded through toll and other

receipts from operation of Highways

In accordance with the powers delegated by the NHA Executive

Board the Authority is geographically as well as functionally

organized as follows.

FUNCTIONAL SETUP

NHA has its Head Office at Islamabad with the Chairman as its Chief

Executive Officer. It is functionally divided into five core wings

namely Planning Wing, Operation Wing, Motorways Wing, Finance

Wing, Administration Wing and two further wings of Construction &

Aided Projects Wing. Then there are three independent sections of

Secretary Section, Internal Audit Section and Vigilance Section.

Each wing is headed by a Member. All Members are functional

heads of their respective wings. They are assisted by General

Managers who are operational heads of wings. The head office

controls the operations of the Authority throughout the country.


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WING/SECTIONS HEADED BY

Planning Wing Member

Planning Section GM (Planning)

Procurement & Contract Administration

Section GM (P&CA)

Design Section GM (Design)(s)

BOT Section GM (BOT)

BOT Section Director (Private Sector

Projects)

Legal Bureau Director (Legal)

Operation Wing Member

Operation GM (Operations)

MPO GM (MPO)

EALS GM (EALS)

Construction Wing Member

Construction GM (Construction)(s)

Projects GM (Projects)(s)

Aided Projects Member

Asian Development Bank GM (ADB)(s)

NHIP GM (NHIP)

NEP GM (NEP)

Motorways Member

Motorways GM (Motorways)

Finance Wing Member

Finance Section GM (Finance)

Budget & Account GM (B&A)

Revenue GM (Revenue)

Administration Wing Member

Admin GM (Admin)

Establishment GM (Establishment)

Coordination GM (Coordination)

Personnel Director(Personnel)

HRD Director (HRD)

Computer Bureau Director (MIS)

Public Relations Director (PR)

Secretary Section Secretary (NHA)

Internal Audit Section GM (IA)

Vigilance Section Director (Vigilance)


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GEOGRAPHICAL SETUP

NHA is geographically organized into six regions with one regional

office in each provincial capital and one in Multan known as Punjab

(South) and one at Abbottabad known as Northern Areas Region.

Each is headed by a Regional General Manager.

NHA REGIONAL OFFICE LAHORE

The Regional General Managers are under administrative control of

Member (Operations). Each of these Regional Offices shall have an

officer of the rank of Dy Director (Accounts) as the representative of

Member (Finance). The Deputy Director (Accounts) shall be under

administrative control of Member (Finance).

As many Project Offices dealing with individual major projects as are

declared by the Chairman as “Self Accounting Projects,” are

headed by Project General Managers who are under administrative

control of Member (Operations). With an officer of the rank of

Director /Deputy Director (Accounts) acting as representative of the

Member (Finance) in each project office. The Deputy

Director/Director (Accounts) shall be under administrative control of

Member (Finance). The Project General Managers of Motorways

shall report directly to Member Motorways / Highways as ordered by

the competent authority.


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I N T E R N S H I P R E P O R T

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FINANCE WING

The services of NHA are delivered after complete planning at

different wings of NHA. Since my work field in the course of training

was relevant to Finance, so I was placed in the Finance Wing of

NHA. The Finance Wing is headed by the Member Finance. In terms

of the provisions of NHA Act 1991 (as amended in 2001), the

Member (Finance) is also a Member of the NHA Executive Board.

Finance Wing deals with all finance, budget, revenue and accounts

related matters of NHA.

FUNCTIONS OF FINANCE WING:

i. Financial Functions:

To Arrange Financing through:

i. GOP (PSDP and Grants for Maintenance and

Establishment)

ii. Donor Agencies

iii. Private Sector

iv. Toll & other Income

Placement of Funds & Open Market Operations

Formulation of Financial Policies & Procedures

Management of NHA Fund

ii. Budgetary Functions:

Preparation of NHA‟s Annual Development, Maintenance,

Revenue & Establishment Budget

Budget Revisions in coordination with other Wings

Ensuring timely release of NH‟s monthly allocations

Preparation and review of prescribed periodic reports.


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iii. Revenue Functions:

Accounting of NHA Revenues

Payment to contractors & Consultants

Processing withdrawals from receipts

Devising system and internal controls to avoid revenue

leakages

Monitoring, verification and certification of revenue figure

iv. Financial Advisory Functions:

All matters bearing financial implications

Accounting principles & policies

Obtaining and processing of loans

Tax matters

Enlisting of Banks and Insurance Companies

Proposals for generation of funds

Manage Computerization & Consolidation of NHA Financial

Statements

Coordinate Audit by external Auditors.


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FUNCTIONAL DIVISION OF FINANCE WING

The operations of the Finance Wing under Member Finance are

divided in to Finance Department under GM Finance & Budget &

Accounts Department under GM B&A. The hierarchy of the Finance

Department and Budget & Accounts is shown below;

Chairman

Member (Finance)

GM (Finance)GM (B&A)


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DUTIES & REPONSIBILITIES OF GM (Budget & Accounts):

Payment and accounting of all development, revenue and

establishment expenses charged on the duly approved NHA

Budget

Preparation of development, revenue and establishment

budgets of the regions and head quarters as an input to entity

budget and for government consideration in respect of PSDP

and grants

Maintenance of primary and subsidiary books of accounts

Maintenance of loan and fixed assets primary books

Administration and training of Finance Wing Staff

Payroll processing

Coordination of all regional accounts offices

Coordination and response to audit Para‟s and of public

accounts committee

Coordination and liaison with Ministry of Communications,

Planning & Development Division and Ministry of Finance on

operational budgetary matters including PSDP and non-

development grants.


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DUTIES & RESPONSIBILITIES OF GM (Finance):

Conduct detailed reviews of NHA‟s financial operations with

reference to effective and proper utilization of funds and advise

on internal control systems including accounting manuals, their

revision and computerized accounting.

Advice manage NHA‟s funds and non-fund accounts

Book-keeping, consolidation, reconciliation and preparation of

financial statements

Advice on maintenance of fixed assets registers, depreciation

policy etc.

Maintenance of CP/GP funds

Preparation of entity budget for the NHA board and council

Coordination and supervision of audit by chartered accountants

Participate in negotiations with international lending agencies for

arrangements of funds and liaison with economic affairs division.

Examining feasibilities and proposals having prospective financial

effect for NHA interpretation of the clauses of contract and

agreements having financial implications.

Advice on tax related matters

Conduct evaluation of insurance companies and banks for

registration as approved agencies for NHA operations and for

issuance of guarantees and bonds and their authenticity.


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WORK HIERARCHY

I was placed at Regional Office of NHA (Punjab-North). Since the

Regional Offices are headed by General Managers under

administrative control of Member (Operations). Each of these

Regional Offices shall have an officer of the rank of Deputy Director

(Accounts) as the representative of Member (Finance) working

under administrative control of GM (B&A). The hierarchy so created

is shown below;

MEMBER Finance

GM (Finance)GM (B&A)

Dy. Director (Accounts)

Asst. Director (Accounts)


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The hierarchy for the Non Gazetted officers working under Assistant

Director Accounts is as follows;

Supdt. Accounts

Accounts Assistant

Senior Accounts

Clerk

Junior Accounts

Clerk

Upper Division Clerk

Lower Division Clerk

Computer Operator


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SCHEDULE OF ACTIVITIES OF ACCOUTS SECTION:

The following activities are performing by the Accounts Office

„DDO‟ Section.

Keeping cheque books of all bank accounts maintained at NHA

H.Q in safe custody.

Maintenance of bank balances summary as per cash book on

daily basis.

Maintenance of all cash books in respect of bank accounts

maintained at NHA H.Q.

Preparation of bank reconciliation statements.

Preparation of PSDP utilization reports on monthly, quarterly &

yearly basis.

Acquisition/utilities in order to prepare a liability statement for

approval.

Transfer of funds to NHA Regional/Project Offices

Transfer of development funds to decentralized projects.

Deposition of tax challans, pension contribution, G.P fund etc

into State Bank of Pakistan in respect of contractors, consultants

and NHA employees.

Transfer of salaries and allowances of NHA Employees

throughout Pakistan.


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Processing of the cases opening and closing of NHA‟s Bank

Accounts throughout Pakistan.

Processing of cases of change of signatories in respect NHA‟s

Bank Accounts throughout Pakistan.

Preparation of receipt vouchers on behalf of all Accounts

Sections.

Processing and analysis of short term placements in banks on

approved panel.

Reconciliation of Maintenance and Establishment grants with the

AGPR.

Visits to AGPR for collection of releases and grants.


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INFLOWS:

i. Bank Statements of all Bank Accounts maintained at NHA

H.Q.

Report Provider---Banks

ii. Detail of Profit in respect of bank accounts maintained at

NHA H.Q.


iii. Credit and Debit invoices in respect of bank accounts

maintained at NHA H.Q.


iv. NHA Receipts in the form of bank drafts, pay orders, cheques,

online receipts against Government grants, PSDP releases,

recoveries from NHA employees, NHA own receipts, RMA etc

supported by covering letters/reports.

Report/Receipts/information Provider---Govt, NHA Offices,

Contractors

v. Statement of bank accounts maintained at NHA

Regional/project offices.

Report Provider---Banks through NHA Regional/project Offices

vi. Statement of closing balances of cash books maintained at

NHA Regional Offices.

Report Provider---NHA Regional/project Accounts Offices

vii. Proposals from various banks for investment.

Proposals received from---Banks


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4INSTITUTE OF BUSINESS ADMINISTRATION 27

viii. Miscellaneous requests in the form of letters, Account opening

form/specimen signature cards for opening and closing of

bank accounts as well as request letters for change of

signatories.

Request received from---NHA Office

ix. Payment vouchers which are finalized/scrutinized in respect

of RMA, PSDP, Establishment etc for disbursements.

Received from---NHA Accounts Offices at NHA H.Q

OUTFLOWS:

i. Disbursement in the form of cheques, demand drafts, pay

order and through telegraphic transfer throughout Pakistan.

Beneficiaries---Payee’s as per payment vouchers

ii. Dispatch letters along with cheques, demand drafts, pay

order and payments made through telegraphic transfer.

Beneficiaries---Payee’s as per payment vouchers

iii. Deposition of tax challans, pension contribution, G.P fund etc

through prescribed format/printed challan forms.

Beneficiaries---Payee’s as per payment vouchers/State Bank

iv. PSDP utilization, Maintenance funds transfer, Establishment

funds transfer, Budget Re-appropriation report, Receipt and

Payment A/c.

Beneficiaries---------Member (Fin.), G.M (B&A), Chairman, NHA

Account Office, Operation Wing, Planking Wing, Finance

Division, AGPR, etc

v. Bank Reconciliation Statements

Beneficiaries--- Works Auditors, Commercial Auditors.


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vi. Summary of Receipts against PSDP and Government Grants.

Beneficiaries-----------Member (Fin.), G.M (B&A), Chairman,

NHA (On demand) Accounts offices, Works Auditors,

Commercial Auditors

vii. Issuance of Cash Receipts against adjustments of advances

from NHA employees , D.D.O, Finance Division (for receipt of

PSDP funds) and D.D.O, MOC (for receipt of maintenance

and establishment grants)

Beneficiaries-----NHA employees, D.D.O, Finance Div. & MOC

viii. Profit summaries in respect of checking bank accounts and

detail of term deposit receipts (TDR)

ix. Beneficiaries---Chairman, Member (Fin.), G.M (B&A) (On

demand)

x. Bank balances position as per cash book

Beneficiaries---Member (Finance), G.M (B&A)

xi. Issuance of letters for opening/closing of bank accounts,

Issuance/roll over of TDR‟s

Beneficiaries---Banks

xii. Disposal of original payment vouchers after disbursement and

copies of receipt vouchers to concerned accounts sections.

Beneficiaries---All Accounts Sections


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PAYMENT PROCESS ALONGWITH FLOW CHART

NOTE:-

In case of shortage of funds, D.D.O is required to obtain approval for internal

borrowing from G.M (Budget & Accounts) in order to ensure availability of funds.

Approved

Payment

Vouchers

Cashier

Receives

Payment

Voucher and

Prepare

Cheques of

Routine

Payments

Signing of

Cheques &

Disbursement

Approved payment vouchers are received

from Accounts offices on daily basis in respect

of PSDP, RMA and Establishment payments.

Regarding major payments of contractors,

consultant, land acquisition/utilities and transfer of

funds to project offices, D.D.O is required to obtain

approval from G.M (B&A) on a liability statement

and also to ensure sufficient availability of funds

prior to preparation of cheques.

After decision/approval, major payments are

released to beneficiaries


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RECEIPT PROCESS ALONGWITH FLOW CHART

Cheque

/Demand

Drafts /Pay

Orders Along

with Covering

Letters

Cashier

Receives and

Generates the

Receipt

Voucher and

Selects Proper

Head of

Account

Signing

Maintenance

of Record of

Receipt

Vouchers

Receipts of different nature in the form of

Cheques, Demand drafts, Pay orders and cash

against adjustment of employees advances are

received in cash branch from all NHA

offices/Banks through respective Accounts

branches on daily basis along with covering letters

All receipt vouchers are required to be vetted and

signed by the SAC, Supdt.(Cash) and DDO. Once

receipt voucher is generated, G.L system automatically

updated the cash book balance position.

After decision/approval, major payments are

released to beneficiaries

NOTE:-

In case Cash branch has been generating the receipt vouchers on behalf of all accounts

offices at NHA H.Q and is also maintaining its record. The practice of generating receipt

vouchers in cash branch ensures timely updating of cash book balances.


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FLOW CHART OF ACCOUNTS WORK FLOW AT REGIONAL ACCOUNTS OFFICE

For depositing & Preparation

of Voucher

For signature after

verification

GM (Punjab)

Director (Maint.)

DD (Admin.)

Cheque/Drafts along with

supporting documents

Cheque / Draft deposit in

relevant Bank Account Prepare Receipt Voucher

Vo

uc

he

r afte

r sign

atu

re

Ch

ec

k &

Pu

t up

for

Sig

na

ture

DD (Accounts)

AD (Accounts)

BANK

Superintendent

(Accounts)

Cashier


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LIST OF OFFICERS IN FINANCE WING

NAME Muhammad Junaid

DESIGNATION Member (Finance)

GRADE BS- 21

APPOINTMENT Deputation

POSTING NHA Head Quarter Islamabad

NAME Ajmal Gondal

DESIGNATION General (Manager Finance)

GRADE BS- 20

APPOINTMENT Regular


NAME Sher Bahadar Arbab

DESIGNATION General Manager (Budget & Accounts)

GRADE BS- 20

APPOINTMENT Deputation



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NAME Pir Bux Langah

DESIGNATION Director (Accounts) - Punjab

GRADE BS- 18

APPOINTMENT Regular

POSTING NHA Regional Office Lahore

NAME Afzaal Ahmad Khan

DESIGNATION Assistant Director (Accounts) - Punjab

GRADE BS- 17

APPOINTMENT Contract


NAME Fahim Akhtar Naqvi

DESIGNATION Superintendent (Accounts)

GRADE BS- 16

APPOINTMENT Regular



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NAME Khalid Pervaiz


GRADE BS- 16

APPOINTMENT Regular


NAME Omar Shahzad


GRADE BS- 16

APPOINTMENT Regular


NAME Muhammad Ilyas


GRADE BS- 16

APPOINTMENT Regular



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NAME Qazi Nasar Ullah

DESIGNATION Accounts Assistant

GRADE BS- 14

APPOINTMENT Regular


NAME Muhammad Nawaz


GRADE BS- 14

APPOINTMENT Regular


NAME Gul Hassan


GRADE BS- 14

APPOINTMENT Regular



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NAME Saleem Sheikh


GRADE BS- 14

APPOINTMENT Regular


NAME Iftikhar Ahmad


GRADE BS- 14



NAME Muhammad Amir Chohan


GRADE BS- 14




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NAME Ali Alam Zaib

DESIGNATION Computer Operator

GRADE BS- 14

APPOINTMENT Regular


NAME Muhammad Sarfaraz Rao

DESIGNATION Senior Accounts Clerk

GRADE BS- 09



NAME Adil Hafeez Rana

DESIGNATION Senior Accounts Clerk

GRADE BS- 09




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NAME Tariq Hameed

DESIGNATION Upper Division Clerk

GRADE BS- 09

APPOINTMENT Regular


NAME Imran

DESIGNATION Junior Accounts Clerk

GRADE BS- 07

APPOINTMENT Regular


NAME Ateeq

DESIGNATION Junior Accounts Clerk

GRADE BS- 07

APPOINTMENT Contracts


NAME Khurram Shahzad

DESIGNATION Lower Division Clerk

GRADE BS- 07

APPOINTMENT Regular



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2009


F I N A N C I A L

S T A T E M E N T S

A N A L Y S I S


2009


FINANCIAL STATEMENTS


INCOME AND EXPENDITURE ACCOUNT

For the Year Ended June 30, 2010

Notes 2010 2009

Rupees Rupees

INCOME

Government Grants 12 9,321,457,001 10,539,996,860

Operating Income:

Toll Income 17 9,083,518,164 7,347,468,098

Police Fine 18 804,316,842 772,817,971

Income From Weigh Stations

610,200,471 187,467,469

Rental Income

277,983,392 222,038,272

Sale of Tender Documents

18,901,667 25,180,831

Prequalification, NOC & Renewal Fee

211,429,250 60,423,576

11,006,349,786 8,615,396,217

Other Income 19 2,841,213,972 614,783,676

23,169,020,759 19,770,176,753

EXPENDITURE

Operating Expenses 20 17,549,888,099 16,194,007,315

Torkham-Jalalabad Project Expenses 12.1 282,092,308 534,581,431

General And Administrative Expenses 21 21,941,398,694 19,152,164,122

Finance Cost9 22 23,794,064,895 23,055,038,226

63,567,443,996 58,935,791,094

Deficit Before Taxation

(40,398,423,237) (39,165,614,341)

Provision For Taxation

- -

Deficit For The Year

(40,398,423,237) (39,165,614,341)

Accumulated Deficit B/f

(256,975,795,699) (217,810,181,358)

Accumulated Deficit C/f

(297,374,218,936) (256,975,795,699)


2009



BALANCE SHEET

As on June 30, 2010

Notes 2010 2009

Rupees Rupees

ACCUMULATED DEFICIT & LIABILITIES

Accumulated Deficit

(297,374,218,936) (256,975,795,699)

NON-CURRENT LIABILITIES

Long term loans - unsecured 11 279,545,404,431 242,364,820,920

Deferred grants 12 856,813,053 2,870,714,304

CURRENT LIABILITIES

Current Maturity of Long Term Loans

- Unsecured 11 82,202,179,910 77,468,475,898

Retention Money and Deposits 13 6,789,763,179 5,054,944,924

Payable To Contractors, Consultants

and Suppliers 14 5,784,603,308 3,618,990,160

Accrued and Other Liabilities 15 190,976,378,550 158,070,246,421

Provision for Taxation

41,916,921 41,916,921

285,794,841,868 244,254,574,324

CONTINGENCIES & COMMITMENTS 16 - -

268,822,840,416 232,514,313,849


2009


Note 2010 2009

Rupees Rupees

NON-CURRENT ASSETS

Property, Plant & Equipment 4 86,458,040,744 89,516,338,000

Capital Work In Progress 5 136,204,416,198 108,826,688,331

Advances Against Capital Work In

Progress 6 30,036,201,098 22,169,976,445

Long Term Loans & Advances 7 294,423,346 269,212,995

CURRENT ASSETS

Advances, Deposits, Prepayments &

Other Receivables 8 9,066,639,172 6,846,940,292

Short Term Investments 9 - 130,000,000

Cash & Bank Balances 10 6,763,119,859 4,755,157,786

15,829,759,031 11,732,098,078

268,822,840,416 232,514,313,849

NOTE: The annexed notes from 1 to 27 form an integral part of these financial statements.

MEMBER FINANCE CHAIRMAN


2009



CASH FLOW STATEMENT

For the Year Ended June 30, 2010

Note 2010 2009

Rupees Rupees

CASH FLOWS FROM OPERATING

ACTIVITIES

Deficit for the Year

(40,398,423,237) (39,165,614,341)

Adjustments for:

Depreciation on Property, Plant &

Equipment 8,578,864,009 8,964,648,549

Loss on Disposal of Property, Plant &

Equipment - (4,813,923)

Transferred from Deferred Grant to

Income (10,431,415,079) (10,539,996,860)

Loss on Revaluation of Forex Loans

10,674,713,305 9,639,573,092

Provision for Medical Benefits

54,596,225 53,243,665

Financial Cost

23,794,064,895 23,055,038,226

(7,727,599,882) (7,997,921,592)

WORKING CAPITAL CHANGES

(Increase)/Decrease in Current Assets:

Deposits, Prepayments & Other

Receivables (2,219,698,880) (2,713,112,397)

Increase/(Decrease) in Current

Liabilities:

Retention Money and Deposits

1,734,818,255 1,067,506,254

Payable to Contractors, Consultants &

Suppliers 2,165,613,148 (850,766,041)

Accrued & Other Liabilities

1,069,889,342 1,590,250,901

Cash Used in Operations

(4,976,978,017) (8,904,042,875)

Finance Costs Paid

(21,496) (1,701,447)

Decrease in Long Term Loans &

Advances (25,210,351) 3,870,455

Net Cash Used in Operating Activities

(5,002,209,864) (8,901,873,867)


2009


Note 2010 2009

Rupees Rupees

CASH FLOWS FROM INVESTING

ACTIVITIES

Purchase of Property, Plant &

Equipment (500,529,441) (1,400,461,402)

Additions in Capital Work in Progress

(32,397,765,178) (24,581,869,570)

Increase in Advances Against Capital

Work In Progress (7,866,224,653) (2,192,844,476)

Decrease in Short Term Investments

130,000,000 (30,000,000)

Proceeds from Disposal of Property,

Plant & Equipment - 8,850,348

Net Cash Used in Investing Activities

(40,634,519,272) (28,196,325,100)

CASH FLOWS FROM FINANCING

ACTIVITIES

Grants Received During The Year

8,417,513,828 9,581,688,685

Increase in Long Term Loans

39,227,177,382 25,925,493,049

Net Cash from Financing Activities

47,644,691,210 35,507,181,734

Net Increase in Cash & Cash

Equivalents 2,007,962,074 (1,591,017,233)

Cash and Cash Equivalents at

Beginning of Year 4,755,157,786 6,346,175,019

Cash and Cash Equivalents at End of

Year 10 6,763,119,859 4,755,157,786

NOTE: The annexed notes from 1 to 27 form an integral part of these financial

statements.



2009


NATIONAL HIGHWAY AUTHORITY NOTES TO THE ACCOUNTS For the Year Ended June 30, 2010

1. LEGAL STATUS AND OPERATIONS

National Highway Authority (NHA), "the Authority” was established

under the National Highway Authority Act, 1991 ("the Act") to take over

the organization and activities of defunct National Highway Board. The

principal office of the Authority is situated at Islamabad, Pakistan.

The purpose and objects of the Authority, as laid down in the Act are

to plan, promote, organize and implement the programs for

construction, development, operations and repair and maintenance

of national highways and strategic roads specially entrusted to the

Authority by the Federal and Provincial Governments or any other

concerned authority.

2. STATEMENT OF COMPLIANCE AND SIGNIFICANT ESTIMATES

2.1 Statement of Compliance

These financial statements have been prepared in accordance

with approved accounting standards and interpretations issued by

the International Accounting Standards Board (the IASB) and the

International Financial Reporting Interpretations Committee (IFRIC)

of the IASB, as applicable in Pakistan.


2009


2.2 Significant Estimates

The preparation of financial statements in conformity with

International Accounting Standards (IAS) as applicable in Pakistan

requires management to make judgments, estimates and

assumptions that affect the application of policies and reported

amounts of assets, liabilities, income and expenses. The estimates

and associated assumptions are based on historical experience

and various other factors that are believed to be reasonable under

the circumstances, the results of which form the basis of making

judgment about the carrying values of assets and liabilities that are

not readily apparent from other sources. Actual results may differ

from these estimates.

The estimates and underlying assumptions are reviewed on an

ongoing basis. Revisions to accounting estimates are recognized in

the period in which estimates are revised, if the revision affects only

that period, or in the period of the revision and future periods if the

revision affects both current and future periods.

Judgments made by management in the application of IAS that

have significant effects on the financial statements and estimates

with a significant risk of material adjustments in the next year are

discussed in the ensuing paragraphs.


2009


2.3 Provisions

The Authority estimates the recoverability of advances to suppliers,

contractors and consultants and receivables from customers and

provides for doubtful advances and receivables based on its prior

experience. The carrying amounts are disclosed in the respective

notes to these financial statements.

2.4 Property, Plant and Equipment

The Authority reviews the estimated useful lives of property, plant

and equipment on regular basis. Any change in the estimates in

future years might affect the carrying amounts of the respective

items of property, plant and equipment with a corresponding

effect on the depreciation charge and impairment.

2.5 Taxation

The Authority takes into account the current income tax laws and

decisions taken by appellate authorities. Instances where the

Authority's view differs from the view taken by the income tax

department at the assessment stage and where the Authority

considers that its view on items of material nature is in accordance

with the law, the amounts are shown as contingent liabilities.


2009


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Accounting Convention

These financial statements have been prepared under the historical

cost convention except that investments held to maturity are

recognized at amortized cost.

3.2 Property, Plant and Equipment

Property, plant and equipment except freehold land are stated at

cost less accumulated depreciation and accumulated impairment

losses, if any. Freehold land is stated at cost. Cost in relation to

property, plant and equipment comprises acquisition and other

directly attributable costs.

Depreciation on property, plant and equipment is charged to

income using reducing balance method at the rates specified in

note 4 to these financial statements so as to write off the cost of

property, plant and equipment over their useful lives without taking

into account any residual value. Depreciation on additions to

property, plant and equipment is charged from the month in which

an asset is available for use while no depreciation is charged for

the month in which the asset is disposed off.

Subsequent costs are included in the asset's carrying amounts

when it is probable that future economic benefits associated with

the items will flow to the Authority and the cost of the item can be

measured reliably. Carrying amount of the part so replaced, if any

is derecognized. All other repairs and maintenance are charged to

income as and when incurred. Gains and losses on disposals are

credited or charged to income in the year of disposal.


2009


The carrying amounts of the Authority's assets are reviewed at each

balance sheet date to determine whether there is any indication of

impairment loss. If any such indication exists, the recoverable

amounts of such assets are estimated and impairment losses are

recognized in the income and expenditure account. Where

impairment loss subsequently reverses, the carrying amount of the

asset is increased to the revised recoverable amount but limited to

the extent of the initial cost of the asset. A reversal of the

impairment loss is recognized as income in the income and

expenditure account.

3.3 Capital Work in Progress

Capital work in progress is stated at cost less impairment loss, if any,

and transferred to respective items of property, plant and

equipment on completed contract basis.

3.4 Advances against Capital Work in Progress

Advances against capital work in progress are disbursed as per the

terms of the contract with the respective contractors and are

stated at disbursed amounts less adjustments. At the time of

approval of Interim Payment Certificates (IPCs), received from the

contractors, advances are adjusted and transferred to capital work

in progress.

3.5 Receivables

These are stated at original invoice amount as reduced by

appropriate provision for doubtful receivables, if any. Balances

considered bad and irrecoverable are written off, when identified

and provision for doubtful receivables is charged to income and

expenditure account.


2009


3.6 Investments

3.6.1 Investments Held to Maturity

Investments with fixed or determinable payments and fixed

maturity and where the Authority has positive intent and ability

to hold to maturity are classified as held to maturity. These are

initially recognized at cost inclusive of transaction costs, less

impairment loss, if any recognized to reflect irrecoverable

amount and are subsequently carried at amortized cost using

the effective interest rate method.

3.6.2 De-recognition

All investments are de-recognized when the rights to receive

cash flows from the investments have expired or have been

transferred and the Authority has transferred substantially all the

risks and rewards of ownership.

3.7 Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement

comprise cash in hand, in transit and at bank. These are carried in

the balance sheet at cost.

3.8 Loans and Borrowings

These are stated at the proceeds received. Mark-up accrued on

loans and borrowings is accounted for to the extent of the amount

outstanding. Exchange gains and losses on foreign currency loans

are included in the carrying amounts of respective loans and

borrowings.


2009


3.9 Employee Benefits

3.9.1 Provident Fund

The Authority operates a defined contribution contributory

provident fund for its permanent employees for whom

contributions are charged to income and expenditure account

for the year. Equal monthly contributions are made to the Fund

both by the Authority and employees at the rate of 8.33% of the

basic pay.

3.9.2 Pension

The Authority operates an unfunded and unapproved pension

scheme for all its permanent employees. Provisions are made

monthly to cover the obligation as per the formula defined in

the Federal Government Service Rules.

3.9.3 Medical Benefits

The Authority provides post retirement medical benefits to

employees and their families. Under the unfunded scheme all

such employees, their spouses, children upto the age of 25 years

and parents residing with and dependent on the employee are

entitled to the benefit. Unmarried daughters are not subject to

25 years limit. The pensioner and the family are entitled to the

facility upto the life of the pensioner and spouse. There are no

annual limits to the cost of drugs, hospital in-patient treatment

and doctor's fee.


2009


3.9.4 Compensated Absences

The Authority provides for annual leave encashment to its

employees on the basis of un-availed annual leave which is

worked out on an average daily rate, based upon last drawn

gross salary. It is accumulated to a maximum of one hundred

and eighty days. The un-availed annual leave is paid to the

employees on retirement.

3.10 Provisions

Provisions are recognized when the Authority has a present legal or

constructive obligation as a result of past events and it is probable

that an outflow of resources embodying economic benefits will be

required to settle the obligation and a reliable estimate of the

obligation can be made. However, provisions are reviewed at

each balance sheet date and adjusted to reflect the current best

estimates.

3.11 Payables

Liabilities for payables are carried at cost which is the fair value of

the consideration to be paid in the future for goods and services

received, whether billed or not to the Authority.

3.12 Government Grants

Grants related to assets are deferred and recognized as income

over the periods and in proportion in which depreciation on the

respective assets is charged.

Grants related to the income and utilized for revenue expenditure

are credited to income and expenditure account to the extent of

actual expenses incurred during the year.


2009


3.13 Revenue Recognition

Income from toll, weigh stations, right of way rentals and police

fines are accounted for on accrual basis.

Income from bank deposits is recognized proportionately by

reference to the principal outstanding and the applicable rate of

return.

Income on investments is recognized on time proportion basis

taking into account the effective yield of such securities.

3.14 Foreign Currencies

Transactions in foreign currencies are recorded at the rates of

exchange prevailing at the date of the transaction. All monetary

assets and liabilities in foreign currencies are translated into Pak

rupee at the rate of exchange prevailing on the balance sheet

date with the exception of those in respect of which exchange risk

cover is obtained, where these are stated at the committed rate.

All exchange differences are charged or credited to income for

the year.

3.15 Borrowing Costs

All borrowing costs are recognized in the income and expenditure

account as and when incurred.

3.16 Financial Instruments

Financial assets and liabilities are recognized when the Authority

becomes a party to the contractual provisions of the instrument.

These are de-recognized when the Authority ceases to be the party

to the contractual provisions of the instrument.

.


2009


Financial assets mainly comprise investments, advances, deposits,

other receivables and cash and bank balances. Financial liabilities

are classified according to the substance of the contractual

arrangements. Significant liabilities are payable to contractors,

suppliers, consultants and accrued and other liabilities.

All financial assets and liabilities are initially measured at cost which

is the fair value of the consideration given and received

respectively. These financial assets and liabilities are subsequently

measured at fair value, amortized cost or cost, as the case may be.

3.17 Offsetting

Financial assets and liabilities are offset and net amount is reported

in the balance sheet, only when the Authority has a legally

enforceable right to set off the recognized amounts and intends

either to settle on a net basis or to realize the assets and settle the

liabilities simultaneously.

3.18 Taxation

The charge for taxation is based on the taxable income at the

current rates of taxation after taking into account applicable tax

credits, rebates, losses and exemptions available, if any. In case

when provisions of Section 113 of Income Tax Ordinance, 2001 are

applicable, the tax payable is calculated at the rate of one half

percent of operating revenue excluding police fine.


2009


3.19 Transactions with Related Parties

Transactions involving related parties arising in the normal course of

business are conducted at an arm's length on the same terms and

conditions as are applicable to third party transactions.

I N T E R N S H I P R E P O R T . MBA

2009


4. PROPERTY, PLANT AND EQUIPMENT - AT COST LESS ACCUMULATED DEPRECIATION 2 0 1 0

COST DEPRICIATION NBV

As at

01-07-2009 Additions Disposal

As at

30-06-10

As at

01-07-2009 For the Year Disposal

As at

30-06-2010

As at

30-06-2010

Freehold Land 8,656,509,548 182,479,251 - 8,838,988,799 - - - - 8,838,988,799

Roads On

Freehold Land 153,761,894,804 3,644,890,848 - 157,406,785,652 75,252,694,930 8,260,899,844 - 83,513,594,775 73,893,190,877

Bridges On

Freehold Land 1,767,885,179 947,703,096 - 2,715,588,275 310,251,609 118,822,418 - 429,074,027 2,286,514,248

Buildings On

Freehold Land 443,917,795 427,443,367 - 871,361,162 56,874,833 38,848,590 - 95,723,424 775,637,738

Plant And

Machinery 397,366,966 135,015,221 - 532,382,187 181,772,879 67,385,236 - 249,158,115 283,224,073

Motor Vehicles 327,126,305 125,753,801 - 452,880,106 156,429,724 53,172,231 - 209,601,955 243,278,150

Drawing, Survey

& Testing

Equipment

22,897,213 19,880,276 - 42,777,489 13,198,233 6,448,828 - 19,647,061 23,130,428

Office

Equipment 82,076,040 11,526,055 - 93,602,095 32,028,945 14,626,261 - 46,655,206 46,946,889

Computers 41,312,713 13,546,057 - 54,858,770 16,367,283 8,722,486 - 25,089,769 29,769,001

Electric And Gas

Installations 5,595,864 1,200,000 - 6,795,864 2,577,597 833,311 - 3,410,908 3,384,956

Telecommunica

tion Installations 893,851 29,920 - 923,771 378,599 119,859 - 498,458 425,313

Furniture And

Fixture 54,570,783 11,083,960 - 65,654,743 23,354,043 8,939,555 - 32,293,597 33,361,146

Library Books 303,428 14,900 - 318,328 83,814 45,389 - 129,204 189,124

Total 165,562,350,489 5,520,566,752 - 171,082,917,241 76,046,012,488 8,578,864,009 - 84,624,876,497 86,458,040,744


2009


5. CAPITAL WORK IN PROGRESS Note 2010

(Rupees)

Balance as at beginning of year

108,826,688,331

Additions for the year

32,397,765,178

Transferred to property, plant and equipment

(5,020,037,311)

Balance as at end of year 5.1 136,204,416,198

5.1 Project-Wise Break-Up Capital Work In

Progress Note (Rupees)

Punjab Regional Office Building

9,195,925

D.I Khan Mughal Kot

2,963,841,429

Islamabad Peshawar Motorway

12,508,953,934

Chablat Nowshera

3,599,260,760

Mansehra Naraan

7,432,236,174

Halla Mianchannu

9,878,281,064

Islamabad Murree

8,620,717,486

Gawadar Ratodero

12,362,624,511

Dera Allah Yar Nuthal

3,763,170,954

Liyari Expressway

6,996,272,422

Karachi Northern Bypass

3,615,328,406

Khajuri Bewata

944,946,205

Lowari Tunnel

4,805,447,830

Jacobabad Bypass

8,967,932

Azad Pattan Bridge

120,000

Road Maintenance Account Projects 5.2 1,273,869,387

Karakuram Highway

1,361,038,556

Karakuram Highway Bridges

86,086,472

Sorab Kalat

10,000,000

Makran Coastal Highway

3,754,475,166

Lahore Okara

45,209,103

Lahore Islamabad Motorway

285,963,461

Faisalabad Multan

59,753,518

Indus Highway

889,265,522

Nowshera Chitral

1,903,149,935

Okara Bypass

120,198,562

Sher Shah Bridge

375,125,734

Jamshoro Peshawar

497,635

Lala Musa Thotha Rai Bahadur

8,136,286

Karachi Qalat Chamman

5,895,668,907

Adb Nwfp Projects

6,905,750,960

National Highway Development Sector Project

12,097,986,022

NHA Head Office Building

200,794,958


2009


Project-Wise Break-Up Capital Work In

Progress Note (Rupees)

Dhak Pattan Bridge

660,299,592

Quetta Western Bypass

580,708,562

Peshawar Northern Bypass

82,577,529

Larkana Bridge

5,145,141,591

Kararo-Ward

2,307,795,560

Thakot

418,746,867

SRBC Crossing Sara-E-Gambila

1,905,786,439

Karachi Hyderabad Motorway

1,350,000

Chund Bridge

770,672,746

Hosab-Nag-Basima-Surab Road

3,213,409,666

Sindh Regional Office Project

421,322,006

Cmtc

14,270,174

Wah Under Pass

493,013,098

Larkana-Naudero Lakhi

2,068,031,981

Larkana-Moenjodaro

1,152,737,227

Aiman Wala Bridge

750,599,789

Hassan Abdal - Mansehra Express Way (E-35)

1,761,300

Wazir Abad-Pindi Bhatttian Express Way

1,090,805

Sehwan-Ratodero Additional Carriage Way

1,425,000

Gharo Keti Bundar

410,865,923

West Bank Bypass Muzaffar Abad

287,775,959

Muhammad Wala Bridge Over River Chenab

1,140,668,897

Bhawalpur Chowk To Chowk Kumberwala

44,857,402

Bridge Over River Soan

2,468,476

Bhawalpur To Vehari Chowk

56,147,332

Inner Ring Road Multan

518,952,718

Larkana Kamber

15,742,181

Skrand-Nawab Shah

180,520,750

Ratodero-Naudero

177,664,637

Bridge Qazi Ahmed Amri Includin G Sakrand Bypass

122,968,750

Khaniwal Lodhran Expressway

1,266,777

Larkana Naseer Abad

2,087,490

Jalal Pur Pirwala Uch

412,887,617

Dalbandin Nowkandi

17,760,535

Others

38,705,605

TOTAL

136,204,416,198

5.2

This represents expenditure incurred for the construction of toll plazas, weigh

stations, bridges and major rehabilitation works.


2009


6. ADVANCES AGAINST CAPITAL WORK IN PROGRESS Note (Rupees)

Land acquisition collectors / revenue department, GoP 6.1 14,095,450,033

Contractors:

For mobilization

13,437,468,797

Against material

1,782,380,356

For shifting utilities

47,760,149

For forestation

4,000,000

Other

60,489,116

15,332,098,418

Consultants

126,239,430

Suppliers

397,074,931

Staff 6.2 85,338,286

Total

30,036,201,098

6.1 These advances are given on account of acquisition of land for various projects.

6.2 These represent amounts advanced to project officers in order to meet the

administrative expenses of various projects, which are in progress.

7. LONG TERM LOANS AND ADVANCES Note (Rupees)

Advance to National Highway Foundation (NHF) 7.1 -

Loans to employees:

House building

109,263,484

Special house building

166,978,428

Motor car

12,827,123

Motor cycle/bicycle

5,354,310

TOTAL

294,423,346

7.1 This represents interest free advance given to NHF for purchase of plots in NHA Housing

Scheme, Islamabad. When a member (employee) purchases a plot from NHF,

equivalent amount is transferred to special house building loan in his name. The

amount is recoverable in easy installments from the salary of the concerned employee

within 15 years or 3 months before the date of superannuation of the employee,

whichever is earlier.


2009


8.

ADVANCES, DEPOSITS,

PREPAYMENTS AND OTHER

RECEIVABLES

Note (Rupees)

Advances to employees

269,736,460

Advances Taxation

377,848,715

Security deposits

20,707,566

Accrued profit on bank balances

20,968,531

Prepayments

10,679,926

Receivable from contractors 8.1 5,440,136,875

Other receivables

5,239,479,113

11,379,557,185

Less: Provision for doubtful receivables

(2,312,918,013)

TOTAL

9,066,639,172

8.1 It includes an amount of Rs. 2,460,924,259/- receivable from a previous contractor,

Bayinder Insaat, Turizm(Bayinder). The Authority had engaged Bayinder for

construction of M-1 Islamabad-Peshawar Motorway. In April 2001, the Authority

terminated the contract with Bayinder due to delay in project completion. Thereafter

both the Authority and Bayinder lodged claims against each other. Presently, the

matter is in arbitration at Local arbitration in Pakistan (A counter claim filed by

Bayinder) the financial implication is Rs. 50.85 billion (US$ 626 million) and as per legal

department 20% of Bayinder's claim may be awarded. An Investment Disputes (ICSID)

for which Bayinder has lodged a claim amounting Rs. 61.41 billion(US$ 756,196,108) at

ICSID which the Authority has successfully defended and claims of Bayinder has been

dismissed on August 2010.

9. SHORT TERM INVESTMENTS

These represent investment in Term Deposit Receipts having face value of Rs. 100,000,000

(2008: Rs. 100,000,000). These have maturity period from three to six months and carry effective

interest rate of 11% - 15% per annum.

10. CASH AND BANK BALANCES Notes (Rupees)

Cash with banks on:

Saving accounts

6,674,638,285

Current accounts

-

6,674,638,285

Cash in transit

88,481,575

TOTAL

6,763,119,859


2009


11. LONG TERM LOANS - UNSECURED Note (Rupees)

Local Currency Loans

Government of Pakistan (GoP) 11.1 274,482,819,336

International Bank for Reconstruction & Development (IBRD)

2814 Pak 11.2 2,675,960,000

3241 Pak 11.3 1,720,918,500

4,396,878,500

Japan Bank for International Cooperation (JBIC)

PKP-41 11.4 1,708,608,658

PKP-36 11.5 4,058,096,268

PKP-51 11.6 2,180,243,520

PKP-52 11.7 1,535,720,065

PKP-55 11.8 58,380,414

9,541,048,925

International Development Association (IDA) - 2468 11.9 507,010,766

Asian Development Bank (ADB)

1323 Pak 11.10 1,038,814,425

1209 Pak 11.11 561,262,326

2019 Pak 11.12 3,171,724,136

2231 Pak 11.13 7,552,632,869

2103 Pak 11.14 3,885,299,085

2210 (SF)-Pak 11.15 12,990,509

2178-Pak 11.18 4,769,571

2400-Pak 11.19 948,067,206

2450-Pak 11.20 664,598,313

17,840,158,441

306,767,915,967

Foreign currency loans

Daewoo Corporation 11.16 53,423,537,251

Turk Exim Bank 11.17 4,417,131,123

Total foreign currency loans

57,840,668,374

364,608,584,342

Less: Current maturity 11.21 (82,202,179,910)

Deposit with State Bank of Pakistan 11.22 (2,861,000,000)

TOTAL

279,545,404,431


2009


11.1 These represent loans from GoP for financing of construction and development of

various roads and bridges bearing mark-up ranging from 7.42% to 18.03% (2007:

7.42% to 18.03%) per annum. The loans are repayable in 20 years in accordance

with terms of the respective agreements with grace period of 5 years for interest

and 10 years for repayment of principal amount.

11.2 This represents the loan sanctioned by IBRD to finance the construction and

development of Fourth Highway Project. The loan was disbursed to the Authority

during December 1, 1991 to April 1, 1996 and is repayable to GoP in Pak rupees in

30 equal semi-annual installments starting from January 15, 2001 bearing interest

@11% per annum, including exchange risk fee of 3% per annum.

11.3 This represents the loan sanctioned by IBRD to support the Maintenance Backlog

Reduction Programme. The loan was disbursed to the Authority during January 1,

1992 to November 15, 1997 and is repayable to GoP in Pak rupees in 30 equal semi-

annual installments starting from August 31, 2001 bearing interest @11% per annum,

including exchange risk fee of 3% per annum.

11.4 This represents the loan sanctioned by JBIC to finance the construction and

development of Kohat Tunnel Project. The loan was disbursed to the Authority

during March 30, 1998 to September 15, 2001 and is repayable to GoP in Pak rupees

in 20 equal semi-annual installments starting from November 22, 1999, bearing

interest @14% per annum, including exchange risk fee of 3% per annum.

11.5 This represents the loan sanctioned by JBIC to finance the construction and

development of Indus Highway Project. The loan was disbursed to the Authority

during January 8, 1995 to July 1, 2003 and is repayable to GoP in Pak rupees in 20

semi-annual installments starting from August 20, 1998, bearing interest @14% per

annum, including exchange risk fee of 3% per annum.

11.6 This represents the loan from JBIC for the construction and development of Kohat

Tunnel Project. The loan was disbursed to the Authority during September 15, 2001

to May 1, 2003 and is repayable to GoP in Pak rupees in 26 equal semi-annual

installments starting from September 2003, bearing interest @17% per annum,

including exchange risk fee of 6% per annum charged on both principal and

interest payable.

11.7 This represents loan from JBIC for the construction and development of Kohat Tunnel

Project. The loan was disbursed to the Authority during November 1, 2002 to June

30, 2004 and is repayable to GoP in Pak rupees in 26 equal semi-annual installments

starting from May 2005, bearing interest @17% per annum, including exchange risk

fee of 6% per annum charged on both principal and interest payable.

11.8 This represents loan from JICA for the support of Indus Highway Project (PK-P55). This

represents the loan of Japanese yen 19,455 million .The loan is repayable to GoP in

Pak rupees in 60 semi-annual installments starting from June 2017.


2009


11.9 This represents the loan sanctioned by IDA to support the Flood Damages

Restoration Project and was disbursed to the Authority during January 01, 1994 to

June 30, 1999. The loan is repayable to GoP in Pak rupees in 50 equal semi-annual

installments starting from March 15, 2003, bearing interest @11% per annum,

including exchange risk fee of 3% per annum.

11.10 This represents the loan from ADB for the construction of Sukkur Bridge Project and

was disbursed to the Authority during September 1, 1995 to April 11, 2001. The loan is

repayable to GoP in Pak rupees in 40 equal semi-annual installments starting from

September 15, 1999, bearing interest @ 14% per annum, including exchange risk fee

of 3% per annum.

11.11 This represents the loan from ADB to support the Flood Damages Restoration Project

and was disbursed to the Authority during January 17, 1994 to February 1, 1998. The

loan is repayable to GoP in Pak rupees bearing provisional interest rate of 14% per

annum.

11.12 This represents the loan of Japanese Yen 9,353 million i.e. Rs. 9037 million (2009: Rs.

7927 million) sanctioned by ADB to support the Baluchistan Road Development

Sector Project. The outstanding amount represents installments received till June 30,

2010. The loan is repayable to GoP in Pak rupees in 26 semi-annual installments

starting from August 21, 2006 bearing interest @ 17% per annum including exchange

risk fee of 6% per annum.

11.13 This represents the loan of USD 180 million i.e. Rs. 15,408 million (2009: Rs. 14,634

million) sanctioned by ADB to support National Highway Development Sector

Investment Program. The outstanding amount represents installments received till

June 30, 2010. The loan is repayable to GoP in Pak rupees in 26 semi-annual

installments starting from June 15, 2011 bearing interest @ 17% per annum including

exchange risk fee of 6% per annum.

11.14 This represents the loan of Japanese Yen 14,907 million i.e. Rs. 14,403 million (2009:

Rs.12,634 million) sanctioned by ADB to support the NWFP Road Development

Sector and Sub regional Connectivity Project. The outstanding amount represents

installments received till June 30, 2010. The loan is repayable to GoP in Pak rupees in

26 semi-annual installments starting from February 01, 2010 bearing interest @ 17%

per annum including exchange risk fee of 6% per annum.

11.15 This represents the loan of SDR 2,080,000 i.e. Rs. 226,895 million (2009: SDR. 2,080,000

i.e. Rs. 262,776 million) sanctioned by ADB through GoP for NHA to support

consultants payments on National Highway Development Sector Investment

Program Project. The outstanding amount represents installments received till June

30, 2010. The loan is repayable to GoP in Pak rupees in 15 years including two year

grace period in 26 semi-annual installments and bearing interest @ 17% per annum.


2009


11.16 This represents the loan from Daewoo Corporation for the construction and design of

Lahore-Islamabad Motorway Project. The loan was rescheduled in February 1996 and

July 2003 and is repayable in semi-annual installments from July 2003 to August 2008.

Interest is payable at six months' LIBOR for US Dollar's Deposit plus a margin of 1% per

annum fixed two banking days before the beginning of relevant interest period i.e.

1st March and 1st September each year, as published in Financial Times. The loan is

insured by Korea Export Insurance Corporation (KEIC) upto USD 268 million.

11.17 This represents loan of USD 51.602 million from Turk Exim Bank to finance the

Islamabad-Peshawar Motorway. The loan was initially sanctioned for a period of

three years and was rescheduled on March 08, 2003. The loan was repayable in four

equal semi-annual installments starting from May 31, 2005, bearing interest @ six

months' LIBOR for US Dollar's Deposit plus a margin of 4.5% per annum fixed two

banking days before the beginning of relevant interest period i.e. 31st May and 30th

November each year, as published in Financial Times. The loan is still outstanding as

at June 30, 2008.

11.18 This represents loan of USD 170 Million i.e. Rs.14,552 million (2009:Nil) sanctioned by

ADB through GoP for NHA to support National Trade Corridor Highway Investment

program Project-1, The outstanding amount represents installments received till June

30, 2010. The term and condition of repayment is not yet received from GoP.

However an interest charge @ 17% per annum is provided for during the period,

being the interest rate applicable to other ADB funded loans from GoP.

11.19 This represents the loan of USD 230 million i.e. Rs. 19,688 million (2009: Nil) sanctioned

by ADB through GoP for NHA to support the National Highway Development Sector

Investment Program Project-2. The outstanding amount represents installments

received till June 30, 2010. The term and condition of repayment is not yet received

from GoP. However an interest charge @ 17 % per annum is provided for during the

period, being the interest rate applicable to other ADB funded loans from GoP.

11.20 This represents the loan sanctioned by ADB through GoP to be lent from ADB's

special funds resources an amount in various currencies equivalent to SDR 17.163

million (2009:Nil) for expanding the economic foundation by enabling environment

for infrastructure investment, developing power sector, transport sector and water

resources sector. The outstanding amount represents installments received till June

30, 2010. The term and condition of repayment is not yet received from GoP.

However an interest charge @ 17 % per annum is provided for during the period,

being the interest rate applicable to other loans from GoP.


2009


11.21 CURRENT MATURITY OF LONG TERM LOANS Note (Rupees)

Overdue Amount


7,938,204,639

IBRD - 2814 Pak

1,694,774,667

IBRD - 3241 Pak

1,032,551,100

JBIC - PKP-41

1,708,608,657

JBIC - PKP-36

4,058,096,268

JBIC - PKP-51

1,173,977,280

JBIC - PKP-52

649,727,720

International Development Association - 2468

152,103,230

ADB - 1323 Pak

571,347,934

ADB - 1209 Pak

323,805,188

ADB - 2019 Pak

262,103,245

ADB - 2103 Pak

140,260,147

ADB - 2231 Pak

47,350,294

ADB - 2210 Pak

23,972,404

Daewoo Corporation

53,423,537,251

Turk Exim Bank

4,417,131,123

77,617,551,147

Current Maturity


3,034,791,516

IBRD - 2814 Pak

178,397,333

IBRD - 3241 Pak

114,727,900

JBIC - PKP-51

167,711,040

JBIC - PKP-52

118,132,313

International Development Association-2468

20,280,431

ADB - 1323 Pak

51,940,721

ADB - 1209 Pak

43,174,025

ADB - 2019 Pak

370,348,938

ADB - 2103 Pak

346,204,132

ADB - 2231 Pak

138,226,345

ADB - 2210 Pak

694,069

4,584,628,763

TOTAL

82,202,179,910

11.22 This represents amount deposited with State Bank of Pakistan by GoP on behalf of

the Authority on August 10, 1999 for repayment of long term loan from Daewoo

Corporation, which has still not been settled.


2009


12. DEFERRED GRANTS Note (Rupees)

Balance as At Beginning of Year

2,870,714,304

Grants Received During The Year

8,417,513,828

Grants Transferred to Income 12.1 (10,431,415,079)

Balance as at End of Year

856,813,053

12.1 Grants Transferred To Income Note (Rupees)

Torkham Jalalabad Project Expenses

630,479,903

National Highway Improvement Programme

7,587,502,459

Road Maintenance Projects

1,190,097,600

Establishment Charges

62,700,000

Kararo Wahd

903,935,117

Amin Wala Bridge

-

Mohammad Wala Bridge

-

Kkh Skardu

56,700,000

12.1.1 10,431,415,079

12.1.1 These Consist of the Following: Note (Rupees)

Road Maintenance Projects

1,190,097,600

Establishment Charges

62,700,000

Supplementary Grants

654,500,000

Foreign Assistance

7,414,159,401

9,321,457,001

13. RETENTION MONEY AND DEPOSITS Note (Rupees)

Retention Money

6,723,700,684

Earnest Money/Call Deposit Payable

66,062,495

TOTAL

6,789,763,179

14. PAYABLE TO CONTRACTORS

CONSULTANTS & SUPPLIERS Note (Rupees)

Contractors

5,744,289,665

Consultants

38,967,202

Suppliers

1,346,441

TOTAL

5,784,603,308


2009


15. ACCRUED AND OTHER LIABILITIES Note (Rupees)

Mark-Up on Long Term Loans

185,209,347,397

Commitment Charges

160,303,264

Amounts Withheld From Contractors & Suppliers

789,777,395

Withholding Tax

23,355,076

Toll And Police Fine Share Payable

1,700,349,511

Unearned Income

530,620,786

Payable To Pension Fund

729,810,884

Provision for Medical Benefits

56,990,000

Other Payables

1,775,824,237

TOTAL

190,976,378,550

16. CONTINGENCIES AND COMMITMENTS

16.1 Land Acquisition

Some of the land owners from whom the land had been acquired by the Authority

have filed suits in different courts of law against the procedure, process of acquisition

of land and the adequacy of consideration received in this behalf, under section 18 of

the Land Acquisition Act. Management estimates, at this point of time, the potential

adverse financial impact of these cases amounts to Rs. 3.2 billion (2008: Rs. 3.2 billion).

16.2 Contractual

Some of the contractors (including contract employees) have filed suits against the

Authority for violations of contractual obligations, including invalid termination of the

contract, delay in payments etc. The potential financial implications in this regard

amounts to Rs. 56 billion

Out of Rs. 56 billion, Rs. 50.8 billion pertains to claim of M/s Bayinder Insaat (Bayinder).

The Authority had engaged Bayinder for construction of M-1 Islamabad Peshawar

Motorway. Please refer note 8.1 for details..

16.3 Right Of Way

Several petitions have been filed against the Authority at various Civil Courts and High

Court, regarding disputes with respect to the Right of Way. These include lease

holder‟s challenging the cancellation of mutation of land by the Punjab Government.

The resultant potential outflow cannot be practicably assessed at this stage


2009


16.4 Taxation

Provision for income tax has not been made in these financial statements based on

the views that Ministry of Law and Justice, GoP has confirmed the High Court

decision upheld by the Supreme Court in the case of Thal Development Authority is

squarely applicable to NHA because it is a local authority within the meaning of the

definition in the General Clauses of Act and is legally entitled to control and

manage a local fund called the NHA Fund in addition to having the ability to levy

taxes.

The Tax Department allowed exemption to NHA under clause (88) of Part I of second

schedule to the repealed Income Tax ordinance, 1979 (the repealed ordinance) up

to the income year ended June 30, 2000. However, assessment for seven income

years ended June 30, 1997 were later amended while the assessment for three years

ended June 30, 2000 were not amended and as such had acquired finality. The

Commissioner of Income Tax (Appeals) Islamabad set aside the amended

assessments for the seven years in his order dated November 23, 2004. Income Tax

Appellate Tribunal (ITAT) annulled the assessment u/s 122(5A) of the Income Tax

ordinance, 2001 (the ordinance) while the department has filed the reference

application to the high court for the assessment years 1991-92 to 1997-98.

The taxation officer passed order on June 27, 2006 for assessment year 2001-02 under

section 62 of the repealed Income Tax Ordinance, 1979 (the repealed Ordinance) in

which NHA's claim of its being a local authority was rejected. Tax amounting to Rs.

15.5 million has been charged under Section 80D of the repealed Ordinance

including surcharge @ 5%. An appeal against this levy on highly meritorious grounds

was heard on December 11, 2006 and the assessment was set aside by the CIT(A).

The taxation officer has passed the appeal-effect order u/s 124 of the ordinance

based on the order of the CIT(A) against which NHA is in appeal before CIT(A).

Tax amounting to Rs. 16.86 million has been charged u/s 62 of the repealed

ordinance for assessment year 2002-03. The CIT(A) had annulled the assessments

being barred by time, however the ITAT has remanded the case back to CIT(A) for

adjudication on merits, this case is yet to be heard by CIT(A).

Differential tax amounting to Rs. 31,349,774 was levied on May 30, 2006 under

Section 161/205 of the Ordinance for assessment years 2001-2002 and 2002-2003 and

tax year 2003 on account of short deduction of tax from payments made to Taisei

Corporation. An appeal against this levy on highly meritorious grounds is pending

before the CIT(A).

Considering that all the above suits, claims and petitions as disclosed in note 16.1 to

16.4 are subjudice, there may be uncertainties regarding the amount and timing of

any potential outflow.

17. TOLL INCOME Note (Rupees)

Income for the Year

9,083,518,164

Share of Pakistan Railways

-

TOTAL

9,083,518,164


2009


18. POLICE FINE Note (Rupees)

Income For The Year

1,334,418,700

Share Of National Highways & Motorway Police

(530,101,858)

TOTAL

804,316,842

19. OTHER INCOME Note (Rupees)

Profit On Bank Balances & Investments

331,568,571

Miscellaneous

2,509,645,401

TOTAL

2,841,213,972

20. OPERATING EXPENSES Note (Rupees)

Operational Charges

1,782,829,261

Maintenance Work 20.1 15,767,058,838

TOTAL

17,549,888,099

20.1 Maintenance work Note (Rupees)

Road Maintenance Account 20.1.1 9,125,212,315

National Highway Improvement Programme 20.1.2 6,189,578,581

Others 20.1.3 452,267,942

TOTAL

15,767,058,838

20.1.1 These represent expenditure on road maintenance work performed throughout

Pakistan by private contractors under supervision of the Authority.

20.1.2 These represent expenditure on improvement of condition of national highways

falling under the ambit of the Authority.

20.1.3 These represent expenditure mostly incurred on feasibility studies for maintenance

and improvement of roads.


2009


21. GENERAL AND ADMINISTRATIVE

EXPENSES Note (Rupees)

Salaries, Allowances And Benefits

1,453,337,912

Provident Fund Contribution

4,835,031

Repairs And Maintenance

104,060,013

Petrol, Oil And Lubricants

183,671,867

Rent, Rates And Taxes

288,071,689

Communication

4,593,392

Power, Fuel And Other Utilities

210,884,330

News Papers/ Periodicals, Printing & Stationary

45,164,848

Entertainment

2,983,111

Legal And Professional

61,914,069

Traveling And Conveyance

70,745,904

Advertisement And Publicity

103,063,134

Training And Education

55,590

Exchange Loss 21.1 10,670,820,394

Depreciation 4 8,578,864,009

Miscellaneous

158,333,401

TOTAL

21,941,398,694

21.1 Exchange loss Note (Rupees)

Loss On Revaluation Of Forex Loans

10,677,143,800

Other Exchange Gain

(6,323,406)

TOTAL

10,670,820,394

22. FINANCE COST Note (Rupees)

Mark-Up On Long Term Loans

23,794,043,399

Bank And Other Financial Charges

21,496

TOTAL

23,794,064,895



2009


23. FINANCIAL INSTRUMENTS

23.1 Financial assets and liabilities

2010

INTEREST BEARING

NON-INTEREST

BEARING TOTAL

Rupees

FINANCIAL ASSETS

Maturity Upto One Year:

Advances, deposits and other receivables - 10,721,292,085 10,721,292,085

Short term investments - - -

Cash and bank balances 6,674,638,285 88,481,575 6,763,119,859

Maturity After More Than One Year

Long term loans and advances - 294,423,346 294,423,346

6,674,638,285 11,104,197,005 17,778,835,290

FINANCIAL LIABILITIES

Maturity Upto One Year:

Long term loans - unsecured 82,202,179,910 - 82,202,179,910

Retention money and deposits - 6,789,763,179 6,789,763,179

Payable to contractors, consultants & suppliers - 5,784,603,308 5,784,603,308

Accrued and other liabilities - 189,658,956,880 189,658,956,880

Maturity after more than one year:

Long term loans - unsecured 279,545,404,431 - 279,545,404,431

361,747,584,342 202,233,323,367 563,980,907,709

On balance sheet gap (355,072,946,057) (191,129,126,362) (546,202,072,419)


2009


23.2 Liquidity risk

Liquidity risk reflects an enterprise's inability in raising funds to meet

commitments. The Authority believes that it is not exposed to a

significant level of liquidity risk.

23.3 Concentration of credit risk

Credit risk represents the accounting loss that would be recognized

at the reporting date if the counter parties failed to perform as

contracted. The Authority's credit risk is primarily attributable to its

receivables and balances with banks. Credit risk on liquid funds is

limited because the counter parties are banks with reasonably high

credit ratings. The Authority has no significant concentration of

credit risk as the exposure is spread over a number of counter

parties which are considered to be credit worthy.

23.4 Currency Risk

Currency risk is the risk that the value of a financial instrument will

fluctuate due to changes in foreign exchange rates. Currency risk

arises mainly where receivables and payables due to transaction

with foreign supplier and buyer. Financial liabilities include Rs.107,

717,083,125 which are subject to currency risk.

23.5 Fair Value of Financial Assets and Liabilities

The carrying values of financial assets and liabilities reflected in the

financial statements approximate the fair values except for

investments held to maturity which are stated at amortized cost


2009


24 NEW ACCOUNTING STANDARDS AND IFRS INTERPRETATION

THAT ARE NOT YET EFFECTIVE

The following International Financial Reporting Standards, International

Accounting Standards and Interpretations are only effective for

accounting periods, beginning on or after the date mentioned against

each of them.

STANDARDS EFFECTIVE FROM

IAS-23 - Borrowing cost (as revised); January 01, 2009

IFRS 7 - Financial Instruments: Disclosures; April 28, 2008

IFRS 8 - Operating Segment; January 01, 2009

IFRIC 12 - Service Concession Agreement; January 01, 2008

IFRIC 13 - Customer Loyalty Programs; January 01, 2008

IFRIC 14 - The Limit on a Defined Assets Minimum

Funding Requirements and their Interactions. January 01, 2008

IAS 29 - Financial reporting in Hyperinflationary

Economies; April 28, 2008

The management believes that these accounting standards and

interpretations do not have any impact on the present transactions of the

Authority or the Authority would be able to comply with these standards,

interpretations and amendments when applicable.


2009


25 CORRESPONDING FIGURES

The comparative figures have been rearranged and/ or

reclassified, wherever necessary, for the purpose of comparison in

these financial statements.

26 DATE OF AUTHORIZATION

These financial statements were authorized for issue by the

Executive Board of the Authority.

27 GENERAL

Figures have been rounded off to the nearest rupee



2009


HORIZONTAL & VERTICAL ANALYSIS

H O R I Z O N T A L A N A L Y S I S O F As at 30th JUNE

B A L A N C E S H E E T 2010/2009 2009/2008 2008/2007

Non Current Assets

Property, Plant And Equipment (3.42) (5.90) 6.31

Capital Work In Progress 25.16 26.24 10.09

Advances Against Capital Work In Progress 35.48 10.98 33.81

Long Term Loans And Advances 9.36 (1.42) (8.11)

Current Assets

Advances, Deposits, Prepayments & Other

Receivables 32.42 65.63 116.97

Short Term Investments (100.00) 30.00 (86.42)

Cash & Bank Balances 42.23 (25.07) 4.62

TOTAL ASSETS 15.62 9.59 10.67

Accumulated Deficit 15.72 17.98 18.15

Non Current Liabilities

Long Term Loans - Unsecured 15.34 12.52 10.55

Deferred Grants (70.15) (25.03) 45.12

Current Liabilities

Current Maturity Of Long Term Loans -

Unsecured 6.11 11.69 16.34

Retention Money And Deposits 34.32 26.77 11.76

Payable To Contractors, Consultants &

Suppliers 59.84 (19.03) (2.98)

Accrued And Other Liabilities 20.82 18.96 19.94

Provision For Taxation - - 100.00

Contingencies & Commitments 17.01 15.90 18.01

TOTAL LIABILITIES 15.62 9.59 10.67


2009


NOTES TO ANALYSIS:

The Horizon Analysis of Balance Sheet has been done using chain

based analysis between two consecutive years such that no fixed

based is used but for analysis every preceding measurement is

taken as base.

Assets:

NHA overall assets have increased slightly over the years. The

major chunk of this increase has been found in Capital work in

Progress and Advances therewith that shows NHA has been

working on some large scale development projects during the

period that are still underway. That is why Fixed Assets have not

shown any increase.

NHA Loans, Advances & Prepayments also have increased from

2008 due to early payments of its expenses that will be realized

later.

The Cash & Bank balances have shown a varying trend over the

years. It seems that NHA does not have a clear policy towards

the level of cash.

The Short Term Investments have almost diminished in the period.

Liabilities:

Analyzing non-current liabilities we see a continuous rise in Long

Term Loans (unsecured)and a declining trend in Deferred Grants

as there has been huge realization of the Deferred Grants

specially in the last two years.

Current liabilities have shown varying trends highlights being

significant increase in Retention money & Deposits and the huge

Payable to contractors, consultants and suppliers specially in the

last year.


2009


V E R T I C A L A N A L Y S I S O F As at 30 th JUNE

B A L A N C E S H E E T 2010 2009 2008

Non Current Assets

Property, Plant And Equipment 32.16 38.50 44.84

Capital Work In Progress 50.67 46.80 40.63

Advances Against Capital Work In Progress 11.17 9.53 9.42

Long Term Loans And Advances 0.11 0.12 0.13

Current Assets

Advances, Deposits, Prepayments And Other

Receivables 3.37 2.94 1.95

Short Term Investments - 0.06 0.05

Cash And Bank Balances 2.52 2.05 2.99

TOTAL ASSETS 100.00 100.00 100.00

Accumulated Deficit (110.62) (110.52) (102.66)

Non Current Liabilities -

Long Term Loans - Unsecured 103.99 104.24 101.53

Deferred Grants 0.32 1.23 1.80

Current Liabilities

Current Maturity Of Long Term Loans -

Unsecured 30.58 33.32 32.69

Retention Money And Deposits 2.53 2.17 1.88

Payable To Contractors, Consultants And

Suppliers 2.15 1.56 2.11

Accrued And Other Liabilities 71.04 67.98 62.63

Provision For Taxation 0.02 0.02 0.02

Contingencies & Commitments - - -

TOTAL LIABILITIES 100.00 100.00 100.00


2009


NOTES TO ANALYSIS:

The Vertical Analysis of Balance Sheet has been done using Total

Assets & Total Liabilities as base to know the performance of

different heads of balance sheet we use only one base to know the

overall assets and liabilities performance.

Assets:

During 2008 to 2010 Fixed Assets remained almost stable. This is

due to the impact of many projects under taken that are still

under construction.

Major investments have been made that can be seen in rise in

Capital work in Progress and Advances therewith.

Changes in Long Term Loans & Cash Balance of NHA have also

been insignificant during the last few years.

Liabilities:

We had seen a decreasing trend in non-current liabilities. The

major contributor is long term loans.


2009


H O R I Z O N T A L A N A L Y S I S O F For the Year Ended 30th JUNE

I N C O M E S T A T E M E N T 2010 /

2009

2009 /

2008

2008 /

2007

INCOME

Operating Income:

Toll Income 23.63 4.59 14.37

Police Fine 4.08 (22.10) 18.27

Income From Weigh Stations 225.50 (33.75) 12.68

Rental Income 25.20 2,145.74 (35.86)

Sale Of Tender Documents (24.94) (65.74) (27.04)

Prequalification, NOC & Renewal Fee 249.91 (92.83) 11.39

Total Revenue 27.75 (6.62) 13.83

Government Grants (11.56) 151.56 (24.35)

Other Income 362.15 (30.21) 48.75

EXPENDITURE

Operating Expenses 8.37 54.85 (13.80)

Torkham-Jalalabad Project Expenses (47.23) 1,548.57 (95.99)

General and Administrative Expenses 14.56 18.12 51.77

Finance Cost 3.21 9.73 1.96

Total Expenses 7.86 23.51 7.88

Deficit before Taxation 3.15 17.19 11.41

Provision for Taxation - - 100.00

Deficit for the Year 3.15 17.04 11.55


2009


NOTES TO ANALYSIS:

The Horizon Analysis of Income Statement has been done using

chain based analysis between two consecutive years such that no

fixed based is used but for analysis every preceding measurement is

taken as base for each component of Income Statement.

Total Operational Revenue has increased significantly over the

years especially in 2009-10 mostly seen in Income from Weigh

Stations and Prequalification, NOC & Renewal as many contracts

were awarded for some major developmental projects and a

few Weigh Stations have also been functional in these years

creating revenues. Government Grants has been decreased this

year unlike previous year when we saw significant transfer of

Deferred Grant to Income Statements.

Other Income has increased marginally this year as compared to

yester years.

The Expenditures have also shown varying trends of increment

over the years exception being the expenses on Torkham-

Jalalabad Project which has decreased this year as compared

to previous year when huge amount were spent on that

account.

The Finance Charges which is the major contributor to Expenses

has also increased owing mostly to interest payments on long

term borrowings.

NHA‟s Deficit for the year has also swelled over the years and it

faced the deficit again with 3% increase.


2009


V E R T I C A L A N A L Y S I S O F For the Year Ended 30th June

I N C O M E S T A T E M E N T 2010 2009 2008

INCOME

Operating Income

Toll Income 82.53 85.28 76.14

Police Fine 7.31 8.97 10.75

Income From Weigh Stations 5.54 2.18 3.07

Rental Income 2.53 2.58 0.11

Sale Of Tender Documents 0.17 0.29 0.80

Prequalification, NOC & Renewal Fee 1.92 0.70 9.13

Total Revenue 100.00 100.00 100.00

Government Grants 84.69 122.34 45.41

Other Income 25.81 7.14 9.55

EXPENDITURE

Operating Expenses 159.45 187.97 113.36

Torkham-Jalalabad Project Expenses 2.56 6.20 0.35

General And Administrative Expenses 199.35 222.30 175.76

Finance Cost 216.18 267.60 227.75

Deficit Before Taxation (367.05) (454.60) (362.25)

Provision For Taxation - - (0.45)

Deficit For The Year (367.05) (454.60) (362.70)


2009


NOTES TO ANALYSIS:

The Vertical Analysis of Income Statement has been done using

Total Operational Revenue (ie. the sum of Toll Income, Police Fine,

Income from Weigh Stations, Rental Income, Sale of Tender

Documents, Prequalification, NOC & Renewal Fee) as base to know

the performance of different heads of Income Statement. We use

only one base to know the performance of each component of

Income Statement.

Analyzing the Income Statement with respect to NHA‟s Total

Operational Revenue it is found that the major contributor to its

revenue has been Toll Income and the Government Grants

though Other Income component has also shown increase.

Analyzing Expenses, the major contributor has been Finance

Costs, Operating Expenses and General & Administrative

Expenses that have remain almost constant in their weight-ages

with light variations. No Taxation Provision has been made during

the last two years and hence no conclusion can be deduced

from the trend.


2009


FINANCIAL RATIO ANALYSIS

R A T I O A N A L Y S I S

Nature Particulars 2010 2009 2008 2007

Liquidity Current Ratio 0.0554 0.0480 0.0502 0.0488

Asset

Management

Fixed Asset

Turnover Ratio 0.1273 0.0962 0.0970 0.0906

Total Asset Turnover

Ratio 0.0409 0.0371 0.0435 0.0423

Debt

Management

Debt Ratio 2.1062 2.1052 2.0266 1.9616

Interest Coverage

Ratio (0.6978) (0.6988) (0.5906) (0.4556)


2009


1. CURRENT RATIO

It is a Balance Sheet Ratio.

It indicates the firm‟s ability to cover its short-term obligations

A current ratio under 1 suggests that the company would be unable

to pay off its obligations if they came due at that point. NHA‟s

current ratio over the year shows it has below Re. 1 to pay one

rupee as liability. While this shows the company is not in good

financial health, it does not necessarily mean that it will go bankrupt

- as there are many ways to access financing like for NHA it‟s usually

the Federal Government to bail it out of any financial crunch. But it

is definitely not a good sign. Being a government entity with a

different financial structure it can‟t be equated with other

corporate organizations.

The good thing here is NHA‟s current Ratio is slightly moving up and

if it reaches to one, it would be a satisfactory sign for the

management.

0.044

0.046

0.048

0.050

0.052

0.054

0.056

2007 2008 2009 2010

Current Ratio

Current Ratio

Current Assets

Current Liabilities=Current Ratio


2009


2. FIXED ASSET TURNOVER

It is a Balance Sheet/Income Statement Ratio.

Measures the organizations capacity utilization and the

quality of fixed assets to generate revenues.

NHA‟s Fixed Asset Turnover shows that making Re. 1 of investment in

Fixed Assets generates revenue below one rupee. NHA‟s Fixed

Assets from which it can generate revenue is main it‟s Roads Asset.

The higher the ratio better is the fixed assets utilization. This ratio is

found to be increasing in the recent years which show that the firm

is improving the utilizing its fixed assets.

0.000

0.020

0.040

0.060

0.080

0.100

0.120

0.140

2007 2008 2009 2010

Fixed Asset Turnover Ratio

Fixed Asset Turnover Ratio

Fixed Assets=

Fixed Asset

Turnover Ratio

Net Revenue


2009


3. TOTAL ASSET TURNOVER

It is a Balance Sheet/Income Statement Ratio.

It indicates overall effectiveness of the organization in utilizing

its assets to generate revenue.

NHA‟s internal analysis reveals a low in total asset utilization rate

showing that making Re. 1 of investment in Assets generates

revenue below one rupee. This shows that NHA‟s effectiveness has

declined in utilizing its total assets to generate revenue. NHA‟s assets

have increased over the past three years; however its impact on

income statement is not seen yet.

0.032

0.034

0.036

0.038

0.040

0.042

0.044

2007 2008 2009 2010

Total Asset Turnover Ratio

Total Asset Turnover Ratio

Total Assets

Net RevenueTotal Asset

Turnover Ratio=


2009


4. DEBT RATIO

It is a Balance Sheet Ratio.

It indicates the percentage of the organization‟s assets that

are financed by the outsider‟s money

NHA Debt Ratio has been greater than 1 indicating that greater the

amount of other outsider‟s money being used to run its affairs and it

has more debts than assets. NHA‟s debt ratio has seen an increasing

trend in the last couple of years. This increase means higher interest

payment as we have evident from the income statement. This

increase is primarily due to increase in non-current liabilities

especially long term loans which it might have taken to finance its

projects.

1.850

1.900

1.950

2.000

2.050

2.100

2.150

2007 2008 2009 2010

Debt Ratio

Debt Ratio

Total Debt

Total AssetsDebt Ratio =


2009


5. INTEREST COVERAGE RATIO/ DEBT SERVICE RATIO

It is an Income Statement Ratio.

It indicates the organization‟s ability to cover the interest

charges.

Looking at NHA Interest Coverage Ratio gives a very grim picture

which is way below zero, the reason being the deficit NHA faces

every year. The lower the ratio, the more the company is burdened

by debt expense and any interest coverage ratio below 1

indicates the company is not generating sufficient revenues to meet

its contractual interest payment. The ratio has been on a declining

trend over the past four years which should hamper its ability to

meet interest charges over the years. But the fact is quite

contrasting as NHA is consistently allocation budget for Debt

servicing every year that forms a major part of its expenditures

despite deficit.

(0.800)

(0.700)

(0.600)

(0.500)

(0.400)

(0.300)

(0.200)

(0.100)

0.000

2007 2008 2009 2010

Interest Coverage Ratio

Interest Coverage Ratio

=Interest

Coverage Ratio Interest Expense

EBIT


2009


6. INCOME PERCENTAGE RATIO:

INCOME % RATIO 2010 2009 2008 2007

Toll Income 39.21 37.16 49.14 43.15

Police Fine 3.47 3.91 6.94 5.89

Income From Weigh Stations 2.63 0.95 1.98 1.76

Rental Income 1.20 1.12 0.07 0.11

Sale Of Tender Documents 0.08 0.13 0.51 0.71

Prequalification, NOC & Renewal Fee 0.91 0.31 5.89 5.31

Government Grants 40.23 53.31 29.31 38.91

Other Income 12.26 3.11 6.16 4.16

TOTAL 100.00 100.00 100.00 100.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

20072008

20092010

INCOME % RATIO

Toll Income

Police Fine

Income from Weigh Sstations

Rental Income

Sale of Tender Documents

Prequalification, (NOC) & Renewal Fee

Government Grants

Other Income


2009


7. EXPENSES PERCENTAGE RATIO:

.

EXPENDITURE % RATIO 2010 2009 2008 2007

Operating Expenses 27.61 27.48 21.92 27.43

Torkham-Jalalabad Project Expenses 0.44 0.91 0.07 1.83

General & Administrative Expenses 34.52 32.50 33.98 24.15

Finance Cost 37.43 39.12 44.03 46.59

TOTAL 100.00 100.00 100.00 100.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

20072008

20092010

EXPENDITURE % RATIO

Operating Expenses

Torkham-Jalalabad Project Expenses

General & Administrative Expenses

Finance Cost

S T R E T E G i C

A N A L Y S i S


MBA

2009


STRATEGIC ANALYSIS

S W O T

SWOT analysis is an acronym

that stands for strengths,

weakness, opportunities, and

threats SWOT analysis is careful

evaluation of an organization‟s

internal strengths and

weakness as well as its

environment opportunities and threats.

“The overall evaluation of a company strengths, weaknesses,

opportunities and threats is called SWOT analysis.”

In SWOT analysis the best strategies accomplish an organization‟s

mission by:

1. Exploiting an organizations opportunities and strength.

2. Neutralizing it threats.

3. Avoiding or correcting its weakness.

SWOT analysis is one of the most important steps in formulating

strategy using the organization mission as a context, managers

assess internal strengths distinctive competencies and weakness

and external opportunities and threats. The goal is to then develop

good strategies and exploit opportunities and strengths neutralize

threats and avoid weaknesses.


MBA

2009


STRENGTHS:

NHA is having a monopoly in construction and development

of national highways and motorways of Pakistan as it

manages it all solely.

The working environment for employees at NHA is much

better than most of other public sector organizations.

NHA has a strong commitment and a relationship of trust with

the leading contractors like NLC, FWO etc.

NHA has a strong commitment and a relationship of trust with

the associate authorities like National Highway & Motorway

Police.

Sources of revenues are huge in number for NHA like through

toll taxes, restaurant rents, advertising fees, police fines etc.

NHA is having in-house computerized GL Software which is

being operated successfully on the entire organization and

creating a platform for the unified data storage and

retrieving.

Despite resource constraints NHA has successfully completed

several mega projects.

NHA is having a road network of only 4.4% of Pakistan‟s total

road network but carries 80% of the country‟s overall

commercial traffic and thus is the backbone of the economic

stability and progress of Pakistan.

NHA is having a strong lobbying from Ministries of

Communication and Finance.

NHA‟s pay & perks package for its employees is far better

than many public sector organizations.


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2009


WEAKNESSES:

Favoritism practices are common amongst the entire

organization.

Corruption is found at all levels of the organization.

Political interference especially in recruitment & awarding

contracts is found.

There is no visible evidence of successful leadership in the

organization as its Chairman is appointed out of the

organization and not from within.

Leg pulling of colleagues is a common practice.

Female employees are very rare which makes NHA Office as

male-dominated organization and gives an impression of

discrimination towards women.

Office assets of the organization are misused. For example,

official vehicles are used for private use.

Employees‟ evaluation is based entirely on their level of

experience and not performance due to which they are

effective but not efficient.

There is no cafeteria for employees and they have to go to

near by restaurants for their lunch.

There‟s no system for Files and Record Management and

historical documents are dumped roughly in the go-down,

without any proper mechanism.

NHA has not been able to device a system of security for

motorways & highways in rural and far flung area.


MBA

2009


OPPORTUNITIES:

Fast growing population and urbanization has created more

avenues for work on for the infrastructure development.

NHA can help in increasing the Foreign Direct Investment - FDI

of Pakistan by attracting more foreign contractors to start

their operations in Pakistan.

NHA can convert its Trainees (who are young and more

talented) from contract employees to permanent employees.

Highways and Motorways can be a strong means of

advertising campaigns that can add to government revenues

Besides awareness campaigns like for protection of the plants

and trees and abiding by the rules and regulations of the

roads.

NHA can play an important role in promoting tourism in

Pakistan by connecting the places and people together.

NHA can play an important role in promoting trade providing

supply lines.


MBA

2009


THREATS:

Increasing terrorism and blasts can destroy the completed

and/or in-progress projects of NHA.

Monopoly of NHA can be affected if government allows other

authorities to start the operations related to construction of

roads and communication means or in case of devolution of

the authority to the provinces from the federal government.

Privatization can also be a threat as in case that case working

may improve but at the cost of public interest.

Natural disasters like Tsunami or Earthquakes can destroy the

highways and motorways and can require huge costs for

reconstruction.

Due to political interference & favoritism in recruitment, over

employment in the organization is feared.


MBA

2009


STRATEGIC EVALUATION

INTERNAL FACTOR EVALUATION MATRIX

Key Internal Factors Weight Rating Score

STRENGTH

Premier organization 0.06 3 0.18

Custodian of National Highways Asset 0.09 4 0.36

Broad Network 0.09 4 0.36

Pay & Perks Structure 0.07 4 0.28

Strictly Follow Rules 0.1 3 0.3

Professional Competence 0.09 2 0.18

Sources of Revenue 0.09 3 0.27

WEAKNESS

Lack of Promotional Efforts 0.11 2 0.22

Political Pressure 0.13 2 0.26

Favoritism and Nepotism 0.09 1 0.09

Low Female Employment 0.08 1 0.08

Total 1

2.82


MBA

2009


EXTERNAL FACTOR EVALUATION MATRIX

Key Internal Factors Weight Rating Score

OPPORTUNITIES

Foreign Investment 0.14 3 0.42

Advertisement & Awareness 0.1 3 0.3

Tourism 0.15 4 0.6

Trade 0.07 2 0.14

Increases in Revenues 0.09 3 0.27

THREATS

Natural Disasters 0.15 2 0.3

Devolution 0.1 2 0.2

Terrorism 0.05 2 0.1

Corruption 0.1 1 0.1

Over employment 0.05 1 0.05

Total 1

2.48


MBA

2009


INTERPRETION

NHA is a premier institution of Pakistan committed for developing &

improving the communication and transportation infrastructure of

Pakistan by planning, development, operation, repair and

maintenance of National Highways and Strategic Roads. As a

regulatory body for the construction and maintenance of road

infrastructure NHA performs its function very well, it takes advantage

of its strengths. But as a government sector there are also some

weakness like political pressure and favoritism. The IFE score of NHA

is 2.82 which is above average, its mean that NHA take more

advantage of its strengths over the weakness.

NHA has several opportunities to grow of which it take advantage

of all of them, but the threats faced by NHA are very complicated

and uncertain to control like natural calamities and political

pressure on it and mainly the terrorist activities in the country. The

EFE score of NHA is 2.48 which are below but close to average. It is

because of the threats which are beyond the control of NHA

T R A I N I N G

P R O G R A M M E


MBA

2009


LEARNING & EXPERIENCE:

My internship at NHA has been for 2 months (Aug to date) because

that was summer-off from the Institution and was the best time to

utilize it in a useful way before I unleash my career apart the fact it

was required for completion of my degree.. As far as the question is

concerned, why I chose NHA, the reasons are simple and logical

and that is that I had a reference over there I wanted to experience

a public sector organization.

ORIENTATION:

In order to give me an introduction and overview of the

organization, an orientation session was organized. The orientation

was designed describing the working of Accounts Department at

the regional Office (where I was positioned) and the different

departments of the Finance Wing at Head Office that are inter-

related with the NHA regional office. It includes Budget Section,

Revenue Section, Establishment, Computer Section, DDO Section

and CP Fund Section, Government of Pakistan (GOP) Section,

Aided Projects (AP) Section and the Book-Keeping & Consolidation

Section.


MBA

2009


ORIENTATION AT BUDGET SECTION:

During the orientation session at the Budget Section, I was told that

the section is responsible for preparing the budgets for the authority.

This section estimates the revenues and expenses for the financial

year and makes budgets for the coming period. These budgets can

be categorized as development and non-development budgets.

The explanations of these budgets are as follows:

a. Development Budget:

Development Budget (also known as Capital Budget) is made out

of the funds granted (on annual basis) by the Federal Government

for development of roads. The amount for this budget is determined

on the basis of estimates made by Planning and Operations Wings.

After this, the data is compiled and sent to Chairman for the

approval. If approved, the budget estimates are sent to Ministry of

Communication where Financial Adviser examines the estimates.

Before the budgets are finalized, a meeting is held which is

attended by the representatives of Planning & Development

Division, Finance Division and Economic Affairs Division. The

estimates recommended by this committee are discussed in APCC

(Annual Plan Coordination Committee) meeting which is chaired by

the Prime Minister of Pakistan. Finally, these estimates are submitted

in the Parliament for approval.


MBA

2009


b. Non-Development Budget:

Non-Development Budget can be further categorized into these

two subcategories:

1. Maintenance Budget

2. Establishment Budget

Maintenance Budget:

This is the budget which is required for the maintenance of

existing completed highways and motorways, constructed by

NHA. Maintenance Directorate of NHA is requested to

prepare Budget estimates and submit it to NHA budget

section of Finance Wing. Budget section compiles the

estimates and submits the same to Ministry of Communication

(MOC). After due consideration in MOC, the same is

forwarded to Ministry of Finance (MOF) for approval. Finance

Division allocates the funds for maintenance grant and MOC

releases these funds to NHA on quarterly basis.

Establishment Budget:

Administration Wing of NHA is requested to provide details of

252 core posts of NHA upon the request of Budget Section.

Budget section prepares and compiles the budget estimates

for the posts and submits it to MOC and the same is

forwarded to MOF for approval. Finance Division allocates the

funds for the establishment charges under MOC 252 core

posts. Again MOC releases these funds to NHA on quarterly

basis.


MBA

2009


ORIENTATION AT REVENUE SECTION:

The second week of my internship was scheduled for the orientation

to Revenue Section of Finance Wing. I was told that the main

function of revenue section is to collect revenues for NHA. In

addition, it also makes payments for repair & maintenance of roads

as per maintenance plan devised by Road Assets Management

Directorate (RAMD). So, this Revenue Section can be categorized

into two sub-sections i.e., Receipts & Payments.

Receipts Section:

As the name specifies, this section is responsible to collect

revenues for NHA. The main sources of revenue generation are

toll receipts, rent from hotels, rent from petrol/CNG stations,

hoardings and advertisements, sale proceeds of NHA assets,

tender documents fees, taxes and police fines etc. These

revenues are collected through contractors like TRAME, EPL etc.

These contractors receive revenues from the service users and

deposit it into the account of NHA by the name of „Road

Maintenance Account (RMA)‟. These deposits can be made on

daily, weekly, monthly or quarterly basis (as per the contract‟s

requirement).


MBA

2009


Payment Section:

Payment Section makes all payments regarding repairing and

maintenance of the roads. The payments are made for routine

maintenance, periodic maintenance, emergency maintenance

and geometric maintenance. The section makes arrangements

for Mobilization Advance, Secured Advance, Interim Payments

Certificate (IPC) and final payment to contractors and

consultants as per contract requirements. The Section is also

responsible for transferring funds to Regional Offices on their

demand, according to their shares, for maintenance of roads.

ORIENTATION AT ESTABLISHMENT SECTION:

The next scheduled department for my orientation was the

Establishment Section. This section deals with payments of salaries,

allowances and other personal benefits of NHA employees.

Expenditures of establishment section are met through NHA

Establishment Grant and 1% Special Allocation.

NHA Establishment Grant:

NHA Establishment Grant is allocated for the salary payments

and allowances of permanent employees of NHA. This grant

comes from the Ministry of Communication. These permanent

employees are 252 in number who are getting their salaries

out of this grant.


MBA

2009


1% Special Allocation:

1% Special Allocation is the source of making salary and

allowances payment of those employees who are working for

NHA on contract basis. These employees are hired according

to the projects initiated by NHA. It is called 1% because in

actual it is the one percent of all the funds allocated to NHA

from MOC.

ORIENTATION & WORKING AT GOP SECTION:

Fourth week of my internship was scheduled for GOP section. „GOP‟

stands for „Government of Pakistan‟ Section. At this section, I was

not only supposed to be oriented by also to do some practical

work. At the very first day of the fourth week, the orientation session

was held, in which I was briefed by Mr. Afzaal (AD) about the

functions and operations of the GOP section.

This section deals with all accounts and finance related matters of

those projects which are directly or indirectly funded by the

Government of Pakistan. This is one of the most important sections of

NHA as more than 50% of NHA projects are financed by

Government of Pakistan. So, one can imagine the level of work and

commitment needed in this section. Whenever a project is started,

total project cost is estimated and planned by the planning wing.

These projects become part of Annual Development Program and

Federal Government allocates funds in annual budget. For

completion of these projects, tenders are called from pre-qualified

contractors and the project goes to the contractor who comes up

with the lowest bid.


MBA

2009


GOP section is responsible to make payments to contractors and

consultants as:

Mobilization Advance,

Secured Advance,

Interim Payment Certificate and

Final Payment as per contract‟s terms and conditions

These advances are not given to the contractors until and unless

they give securities in the form of Bank Guarantees to NHA. All

payment bills are singed by Project Consultant and Project Resident

Engineer/ Project Director and are send to General Manager

concerned, who, after certification, sends those bills to General

Manager (Operations). The General Manager (Operations) gets

approval of Member Operations and forwards the bill to Finance

Wing.

From the second day of my schedule at GOP Section, I got started

to work. The tasks I performed in GOP section included

establishment work, imprest, consultancy works and contractors

related works.


MBA

2009


Establishment Work:

Establishment work at GOP Section is related with almost all other

accounts sections of NHA. It covers all the expenses related to

employees‟ salaries, allowances and personal benefits including

medical expenses, house hiring, conveyance charges, utility

charges etc. In this regard, I learnt how to make vouchers for

medical expenses, house hiring, overtime and utility expenses

etc. These vouchers were made in the General Ledger (GL)

Software by entering the employee‟s name, employee number,

amount, debit/credit distinction and explanation for the

expense. Mr. Adil (SAC) helped me a lot in using and entering

the data into this software.

Imprest:

By imprest we mean that amount which is sent to regional offices

of NHA from the Head Office Islamabad. This is called imprest

because this amount is sent to meet the day-to-day expenses of

the regional offices. Expenditures are made at the regional

offices and expenditure statements sent to the head office,

which are checked and verified at head office. I learnt how to

verify those expenses with the reference documents which were

sent as evidence for the expenses incurred. These reference

documents can be used mobile cards, paid-bills etc. After

verification, the next step was to enter those expenses in their

respective accounts on imprest portion GL Software.


MBA

2009


Consultancy Work:

NHA hires consultants to supervise the work of the contractors.

Consultants submit their invoices on monthly basis. The

consultants‟ invoice must contain the following:

o Request Letter

o Staff attendance sheet

o Monthly invoice with proposed contractual rates

o Affidavit regarding staff salary payments

o Certificate ensuring validation of the Securities

o Documents regarding Design Cell (if required)

In the regard of Consultancy Work, I was supposed to check the

invoices arithmetically and to make sure that all the requirements

have been fulfilled by the consultant. I also used to prepare the

vouchers for payment to the consultant. This was one of the

toughest tasks assigned to me, so I consulted Mr. Faheem and

again to avoid any mistakes and error in it. He always welcomed

me and answered my queries very politely.

Contractors’ Work:

After consultancy, I moved to the contractors‟ works. In fact, I

had nothing to do in this regard but just to understand the whole

process that how tenders are given to the contractors, how

bidding is conducted and how the contractor with the lowest

bid is assigned the tender.


MBA

2009


ORIENTATION & WORKING AT AP SECTION:

My fifth scheduled week of internship at NHA was for AP Section.

„AP‟ stands for „Aided Projects‟. As the name denotes, this section

deals with those projects which are funded by foreign donor

agencies. Major donor agencies include World Bank, UNDP, Asian

Development Bank and Japan Bank for International Cooperation

etc. Financing by these agencies can either be direct or indirect:

Direct Financing:

In direct financing because NHA directly negotiates with

foreign donor agencies and signs agreement for loans. There

is no third party involved in this type of financing.

Indirect Financing:

The Government of Pakistan obtains loans from donor

agencies and gives it to NHA for utilization. All terms &

conditions relevant to withdrawal, utilization and repayment

of these loans are set at the time of agreement. Handbooks

are provided for detailed procedures by the agencies.

I worked in Aided Projects Section for 6 days. The first day was

scheduled for orientation session, in which I was told about the

functions and operations of the AP Section. I found the working in

AP Section and GOP Section almost the same. The vital difference

was that in GOP the projects were funded by the Government

whereas in AP, all projects are aided projects. So, the work in these

two sections was almost the same.


MBA

2009


Consultants‟ invoices, contractors‟ bills, etc are processed in the

same way as they were processed in the GOP Section. This section

also deals with the establishment of the employees working on the

projects dealt in this section. Foreign currency is also involved in the

projects dealt in Accounts Section AP i.e. the payment is made in

both local and foreign currencies. What I did in the AP Section were

arithmetic verification of measurement books and maintenance of

cash books:

Arithmetic Verification Of Measurement Books:

In AP Section, the main task assigned to me was the arithmetic

verification of quantities and rates in the measurement books

which were already recorded by an engineer of the project. In

those books he provided the original cost of the contract, the

measurement date, mobilization advance and secured

advances paid and recovered validity of the bank guarantees

etc. I was supposed to arithmetically check the rates and

quantities recorded in those measurement books. After satisfied

verification, tax was charged and retention money was

mentioned along with the details. After that the vouchers were

prepared for the payments of the bill.

Maintenance of Cash Books:

In the last days of my fifth week at AP Section, I learnt to maintain

the cash books of a few projects. I have to record the voucher

details in the cash books, in a specific format. This activity was

done at the end of each month and as it was the end of July, so

I encountered it in the AP Section. Other than writing the cash

books, I used to reconcile them with the electronic cash books

generated by GL Accounting system.


MBA

2009


ORIENTATION AT COMPUTER SECTION:

This was my sixth week at NHA and after the AP Section my next

destination was Computer Section of Finance Wing. Mr. Ali

(Computer Operator) gave me a brief overview of the functions of

this section. He explained that Computer Section is responsible for

the development and operations of the computerized accounting

software being run in the Finance Wing. This is the smallest section of

the Finance Wing, consisting of only 3 employees. They all are well-

educated and have deep knowledge about the latest

technologies and innovations regarding IT. General Ledger (GL)

System is the result of in-house development by NHA employees of

Computer Section. They always welcome the complaints and

suggestions from the other sections for the improvement GL System

and changes after proper approval from the competent authority.

All departments of the NHA Head Quarters are interconnected by a

centralized Local Area Network (LAN) System. Every employee who

is the user of the system has been given a Login ID and Password

that is a precautionary measure to safeguard against un-authorized

access to the system. User‟s authorization to different tasks of the

system is defined and proper checks are applied to ensure that right

authority is accessed by the right person.


MBA

2009


ORIENTATION & WORKING AT BOOK-KEEPING & CONSOLIDATION

SECTION:

After Computer Section, my schedule directed me to the next

section which was Book-Keeping & Consolidation Section. This

section is also one of the main sections of the Finance Wing and

contains information regarding each and every transaction being

done in the entire organization. This section is responsible for

preparing the final accounts of NHA after receiving the Trial

Balances from all other sections of the Finance Wing and all

Regional Offices. Here accounts are consolidated on monthly basis

and each month the consolidated financial statements (Income &

Expenditure Statement, Balance Sheet and Cash Flow Statement)

are prepared and updated.

Coordinating with the external auditors is also the responsibility of

this section. Whenever the audit team is having any query regarding

any issue of the whole Finance Wing, it is the Book-Keeping and

Consolidation Section which jumps in to answer the query and to

satisfy the audit objections. Like Computer Section, this is also a

small section comprised of few but competent employees. In this

section, I was supposed to prepare expenditure statements as well

as reconciling inter-office statements:


MBA

2009


Preparing Expenditure Statements:

First of all I learnt how to prepare the expenditure statements. This

was one of the toughest tasks for me throughout my internship

period because it required complete concentration as well as a

lot of time. Even though, I tried my level best and prepared the

expenditure statements for budget expenses. Whenever the

amount is allocated from the MOC, it comes to NHA in te form of

budget. In this budget, each expenditure head is given a

budget code to which a specific amount is allocated from the

budget. While preparing the expenditure statement, the

concerned authority assigns the budget code to each

transaction in the journal book. On the basis of these codes, I

compared the expenditure made under a certain budget code

with the budget allocated against that code. I was asked to

take all non-bank accounts of the journal book and all bank

accounts of the cash book and match them. It was mandatory

that the net amount in both books must match with each other.

Otherwise, there is some problem in the entry, which has to be

resolved after complete checking of accounts.

Inter Office Statements Reconciliation:

Another task performed by me in the Book-Keeping and

Consolidation Section was the inter office statements

reconciliation. Reconciliation starts with the trial balance.

Firstly, I learnt to check the nature of the balance of each

account head.


MBA

2009


After that, it is made sure that the nature of the balance

matches the nature of account. E.g. if it‟s an asset head it should

have a debit balance, if it‟s a liability head it should have a

credit balance. If the nature of balance does not match with the

nature of account, I was supposed to find out the possible

reasons why the nature of balance and the nature of account

are mismatched. Though it was a tough job yet I concerned my

mentor again and again to find out the discrepancies and to

complete my job successfully.

ORIENTATION AT DDO SECTION:

My second last destination according to my internship schedule was

the orientation at DDO Section (or the Cash Section). „DDO‟ stands

for „Drawings and Disbursement Office‟. I was given a brief overview

about section by the mentor. The responsibility of this section is

basically the funds management. Whenever any type of

disbursements to employees, contractors, consultants or suppliers is

made, cheques are issued by this section. When a payment

voucher is received from any section, cash section prepares crossed

cheque for the amount and enters the date and serial number of

the cheque on the voucher using GL System. Before making the

payment, budget under the head is checked. If budget is not

available under the head, approval of the competent authority is

taken before issuing the cheque for the payment. Similarly, Receipts

vouchers are prepared by cash section. The section maintains

accounts with banks and reconciles cash books with bank

statements on monthly basis. This section also arranges inter-bank

transfers of funds as and when required. As the cash books are

maintained in this section, so the bank reconciliations are also

prepared by the same section.


MBA

2009


ORIENTATION AT CP FUND SECTION:

My last week was scheduled as the orientation at the Cumulative

Provident (CP) Fund Section. CP Fund Section is given the

responsibility of maintaining the information regarding contributions,

deductions and balances of the CP Fund accounts of each

permanent employee of NHA. CP Fund is the form of a saving

facility given as incentives to the employees. Contributions to this

fund are made out of both NHA budgets as well as employee‟s

monthly salary. These contributions are made on fifty-fifty basis and

sum of the contributions is handed over to the employee in case if

he/she got retired, injured or died (in last case amount will be

handed over to the dependents of deceased employee). In case, if

the employee is willing to withdraw some amount out of this fund,

he/she can take that but upto a certain limit. This limit is assigned by

the concerned authorities depending upon the tenure and age of

the employee. The section is responsible for handling these funds as

well answering to the employees if they are having any queries

regarding their accounts and balances.

C O N C L U S I O N

AND

RECOMMENDATIONS


MBA

2009


CONCLUSION

I found NHA as one of the better organizations as compared to

rest of the public sector organizations. It has rendered a lot of

services to Pakistan and the Pakistani People by enhancing the

infrastructure for trade and communication in the country. It is

one of those organizations which can become benchmark for

others if just it makes few changes in its operations and practices.

Verbally, the functions of NHA can be categorized as

construction and maintenance of highways and motorway. But

in my opinion, it is providing a platform for the economic progress

and stability in the country.

While doing internship at NHA, I got able to equip myself with the

experience of practical life and especially the learning of

working in a public sector organization. Most importantly it

taught me how to carry one self inn an organizational setup, how

to interact with people and how to work in group as a team. I

think, I was successfully able to gain sufficient knowledge of

office work which will help me throughout my career to polish my

capabilities and to work for my prospective employer in a proper

way.


MBA

2009


RECOMMENDATIONS

Though two months are not enough to understand and give

suggestions for the improvement of an organization. Yet I will

recommend these points on the basis of my observations:

Leadership should be strong and changed after a fixed period of

time. This will reduce the stagnancy amongst the operations of

NHA and will remove the biasness from the organization.

NHA chairman should be from within the organization.

Attendance through technological means should be taken in

order to make the employees punctual and responsible.

Proper dress code of employees should be determined, in order

to give a proper look of an office environment.

Most of the work done at the Finance Wing is through the

Trainees who are working for very limited salary packages.

According to observation, most of them are educated and well-

qualified. So, if their salaries are increased or if they are

accepted as the permanent employees, they will definitely put

their more extra energies to get their work done.

Audit should be done twice or thrice a year to reduce the

corruption and frauds as well as to increase the check and

balance over the employees.

A cafeteria must be opened within the premises of its offices so

that time wastage of employees for lunch break should be

reduced.


MBA

2009


Recruitment of women on equal opportunity basis be made.

All the employees should be computer literate and the entire

system of NHA be automated through ERP system.

Security arrangements should be beefed up especially at those

offices where it shares its offices with National Highway &

Motorway Police in wake of the attacks on security installations.

Employees‟ evaluation should be made on their performance

and not just their level of experience.

INTERNSHIP CERTIFICATE

REFERENCES

LIST OF MEGA PROJECTS

MOTORWAYS OF PAKISTAN

NATIONAL HIGHWAYS OF PAKISTAN

TOLL RATES

PICTORIAL HIGHLIGHTS

A P P E N D I X

A

P

P

E

N

D

I

X

INTERNSHIP CERTIFICATE

REFERENCES

Direct Interaction and Learning from:

NHA Codes 2005

NHA Finance Manual

NHA Establishment Code 2007

NHA Annual Report 2007

www.nha.gov.pk

Mr. Shoaib Ahmad Khan

General Manager (Audit)

National Highway Authority, Islamabad

Mr. Afzaal Ahmad Khan

Assistant Director (Accounts)

National Highway Authority, Lahore

Mr. Muhammad Nawaz

Accounts Assistant

National Highway Authority, Lahore

http://www.nha.gov.pk/

LIST OF MEGA PROJECTS

Government of Pakistan (GOP) Section:

LRTP (Lowari Rail Tunnel Project)

MCHP (Makran Coastal Highway Project)

LEP (Liyari Expressway Project)

IMDC (Islamabad Murree Dual Carriage way)

N-65 (Sukkar Sibi Quetta Project)

Torkham Jalalabad Project

Kharian Rawalpindi Project

Aided Projects (AP) Section:

KNBP (Karachi Northern By-pass Project)

KTP (Kohat Tunnel project)

M-8 ( Gawadar Ratodero Project)

Karachi Chamman Project

Peshawar Torkham Project

IHP (Indus Highway Project)

M O T O R W A Y S & H I G H W A Y S O F P A K I S T A N

MOTORWAYS OF PAKISTAN

ROUTE DETAILS

D I S T A N C E

Punjab Sindh KPK Baluchistan GB AJK Total

M-1

Islamabad

to

Peshawar

67 - 88 - - - 155

M-2

Lahore

to

Islamabad

367 - - - - - 367

M-3

Pindi Bhattian

to

Faisalabad

53 - - - - - 53

M-7

Dadu-Dureji

to

Hub

- 132 - 138 - - 270

M-8

Gwadar

to

Hoshab

Section

- - - 892 - - 892

M-9 Karachi-

Hyderabad - 136 - - - - 136

M-10

Karachi

Northern

Bypass

- 57

- - - - 57

Total 487 325 88 1030 - - 1930

% age wise 25.23 16.83 4.55 53.36 - - -

NATIONAL HIGHWAYS OF PAKISTAN

ROUTE DETAILS D I S T A N C E


N-5 Karachi-Peshawar-

Torkham 1021 671 127 - - - 1819

N-10

Liari-Gwadar-Gabd

(Makran Coastal

Highway)

- - - 653 - - 653

N-15 Mansehra-Naran-Jalkhad-

Chilas - - 175 - 65 - 240

N-25 Karachi-Bela-Khuzdar-

Kalat-Quetta-Chaman - 23 - 790 - - 813

N-30 Basima-Khuzdar - - - 110 - - 110

N-35

Hassanabdal-

Abbottabad-Thakot-

Gilgit-Khunjerab (KKH)

15 - 176 - 615 - 806

N-40 Lakpass (near Quetta)-

Dalbandin-Taftan - - - 610 - - 610



N-45 Nowshera-Dir-Chitral - - 309 - - - 309

N-50 D.I.Khan - Zhob- Kuchlack

(near Quetta) - - 143 388 - - 531

N-55

Kotri-Shikarpur-D.G.Khan-

D.I.Khan-Kohat-Peshawar

(Indus Highway)

373 495 396 - - - 1264

N-65 Sukkur-Sibi-Saryab (Quetta) - 90 - 295 - - 385

N-70 Multan - D.G.Khan - Loralai -

Qila Saifullah 181 - - 266 - - 447

N-75 Islamabad Satra Mile-Lower

Topa-Kohala 90 - - - - - 90

N-80 Tarnol(Rawalpindi)-Fateh

Jang-Khushalgarh-Kohat 108 - 38 - - - 146

N-85 Hoshab-Pangjur-Nag-Basima-

Surab - - - 487 - - 487

N-90 Kwazakhela-Alpuri-Besham - - 64 - - - 64



N-95

Chakdara-Mingora-

Manglour-Kwazakhela-

Madyan-Bahrain-Kalam

- - 135 - - - 135

S-1 KKH (Gilgit)-Skardu Road - - - - 167 - 167

S-2 Kohala Muzafarabad Road - - - - - 40 40

S-3 Muzaffarabad-Chakothi - - - - - 55 55

E-3 Wazirabad-Pindi Bhattian 100 - - - - - 100

E-4 Faisalabad-Khanewal 184 - - - - - 184

E-5 Khanewal-Lodhran Section

(100 km) 100 - - - - - 100

Total 2172 1279 1563 3599 847 95 9555

%age wise 22.73 13.38 16.35 37.66 8.86 0.99

TOLL RATES IN PAKISTAN

TOLL RATES FOR SUPER HIGHWAY ( M-9 )

VEHICLE TYPE TOLL RATE

Car/Jeep/Land Cruiser/Pajero Tractor without Trolley & Equivalent Pak Rupees 30/-

Wagon upto 24 Seats/Coaster/Mini Bus Mazda Chasis upto 24 seats and Mini Trucks Pak Rupees 45/-

Busses greater than 25 seats Pak Rupees 75/-

2 Axle, 3 Axle Trucks, Tractor with Trolley Pak Rupees 90/-

4/5/6 Axle Trucks (Articulated) Pak Rupees 175/-

TOLL RATES FOR NATIONAL HIGHWAYS



Wagon upto 24 Seats/Coaster/Mini Bus Mazda Chasis upto 24 seats and Mini Trucks Pak Rupees 35/-

Busses greater than 25 seats Pak Rupees 75/-

2 Axle, 3 Axle Trucks, Tractor with Trolley Pak Rupees 90/-


TOLL RATES FOR KOHAT TUNNEL



Wagon/Hiace/Flying Coach Pak Rupees 145/-

Bus/2 Axle Trucks/3 Axle Trucks/Tractor with Trolley Pak Rupees 180/-


TOLL RATES FOR MOTORWAYS ( M-1, M-2, M-3 )


CARS / JEEP Pajero/ and all types of Suzuki Van/Pick up and equivalent. Note 1

WAGONS (UPTO 12 SEATS) Pick up all types modified to carry passengers (Toyota Hilux single/ double

Cabin), Milk TrucksT-3000 and equivalent. Note 2

13-24 seats, Coaster and Mini Bus built on T-3500 Mazda Chassis (upto 24 seats) and Mini Truck /

Tanker built on T-3500 Mazda Note 3

BUSES 50 TO 60 SEATS including Buses Greater than 25 Seats Note 4

RIGID TRUCKS including 2 axle and 3 axle trucks Note 5

ARTICULATED TRUCKS including Articulated Vehicles Note 6

CARS / JEEP

Pajero/ And All Types Of Suzuki Van/Pick Up And Equivalent NOTE 1. .

INTERCHANGES

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Lahore T. P. 0

Faizpur 25 0

Kalashahkaku 25 25 0

Sheikhupura 40 40 15 0

Khanqah Dogran 65 65 40 25 0

Kot Sarwar 80 80 50 40 15 0

Pindi Bhattian 90 90 80 50 25 15 0

Sial More 105 105 90 80 50 25 15 0

Kot Momin 115 115 90 80 50 50 25 25 0

Salam Chowk 130 130 105 90 65 50 40 40 15 0

Bhera 145 145 130 115 90 80 50 50 25 15 0

Lilla 155 155 130 115 90 90 80 65 40 25 15 0

Kallar Kahar 170 170 155 130 115 105 90 80 50 50 25 25 0

Balkasar 180 180 170 155 130 115 105 90 80 65 50 40 15 0

Chakri 220 220 195 180 155 155 130 130 115 90 90 80 50 40 0

Islamabad T.P 235 235 220 210 180 170 155 155 130 115 115 90 80 65 25 0

Sahiwanwala 130 130 115 90 65 50 40 50 65 80 90 115 130 145 170 195 0

Millat 130 130 115 90 65 50 40 50 65 80 90 115 130 145 170 195 15 0

Faisalabad 130 130 115 90 65 50 40 50 65 80 90 115 130 145 170 195 15 15 0

Fateh Jang 255 255 240 225 200 190 175 175 150 135 135 110 95 85 45 20 215 215 215 0

Brahama Bahatar 260 260 245 235 210 195 180 180 155 145 145 115 105 90 50 25 220 220 220 15 0

Burhan 260 260 245 235 210 195 180 180 155 145 145 115 105 90 50 25 220 220 220 20 15 0

Chach 275 275 260 245 220 210 195 195 170 155 155 130 115 105 65 40 235 235 235 30 25 15 0

Swabi 285 285 275 260 235 220 210 210 180 170 170 145 130 115 80 50 245 245 245 45 40 25 15 0

Rashakai 320 320 305 290 265 255 240 240 215 200 200 175 160 150 110 85 280 280 280 85 70 50 40 25 0

Charsada 330 330 320 305 280 265 255 255 225 215 215 190 175 160 125 95 290 290 290 95 85 70 50 40 25 0

Peshawar 345 345 330 320 290 280 265 265 240 225 225 200 190 175 135 110 305 305 305 105 95 85 70 50 40 25 0

WAGONS (UPTO 12 SEATS) NOTE 2. Pick Up All Types Modified To Carry Passengers (Toyota Hilux Single/ Double Cabin), Milk Truckst‐ 3000 And Equivalent

INTERCHANGES

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llar

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Lahore T. P. 0

Faizpur 25 0




Kot Sarwar 115 115 80 50 15 0

Pindi Bhattian 130 130 90 80 40 25 0

Sial More 145 145 115 90 50 40 15 0

Kot Momin 170 170 130 115 80 80 50 25 0

Salam Chowk 180 180 155 130 90 80 50 50 15 0

Bhera 210 210 170 155 115 105 80 80 40 25 0

Lilla 220 220 195 170 130 115 90 90 50 40 15 0

Kallar Kahar 235 235 220 195 155 145 115 115 80 65 50 25 0

Balkasar 260 260 235 220 180 170 145 130 105 90 80 50 25 0

Chakri 310 310 285 260 235 220 195 180 155 130 115 105 80 50 0

Islamabad T.P 325 325 310 300 260 245 220 220 180 170 155 130 115 90 40 0

Sahiwanwala 170 170 130 115 80 65 40 50 90 90 115 130 155 180 235 260 0

Millat 195 195 155 145 105 90 65 80 115 115 145 155 180 210 260 285 25 0

Faisalabad 195 195 155 145 105 90 65 80 115 115 145 155 180 210 260 285 25 15 0

Fateh Jang 350 350 340 325 285 275 245 245 210 195 180 155 145 115 65 25 285 310 310 0

Brahama Bahatar 365 365 350 340 300 285 260 260 220 210 195 170 155 130 80 40 300 325 325 15 0

Burhan 365 365 350 340 300 285 260 260 220 210 195 170 155 130 80 40 300 325 325 30 25 0

Chach 375 375 365 350 310 300 275 275 235 220 210 180 170 145 90 50 310 340 340 45 40 25 0

Swabi 395 395 385 370 330 320 290 290 255 240 225 200 190 160 110 70 330 355 355 65 50 40 25 0

Rashakai 420 420 410 395 355 345 320 320 280 265 255 225 215 190 135 95 355 385 385 105 95 85 50 40 0

Charsada 450 450 435 420 385 370 345 345 305 290 280 255 240 215 160 125 385 410 410 125 110 95 70 50 40 0

Peshawar 460 460 450 435 395 385 355 355 320 305 290 265 255 225 175 135 395 420 420 135 125 110 85 70 50 25 0

13‐ 24 SEATS, NOTE 3. Coaster And Mini Bus Built On T‐3500 Mazda Chassis (Upto 24 Seats) And Mini Truck / Tanker Built On T‐3500 Mazda

INTERCHANGES

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ore

T.

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Sh

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Lahore T. P. 0

Faizpur 50 0




Kot Sarwar 155 155 115 80 25 0

Pindi Bhattian 180 180 145 115 50 40 0

Sial More 210 210 170 130 90 65 25 0

Kot Momin 245 245 195 170 115 105 65 50 0

Salam Chowk 260 260 220 195 145 130 90 80 25 0

Bhera 300 300 260 220 170 155 115 105 50 25 0

Lilla 310 310 275 245 195 170 130 130 80 50 25 0

Kallar Kahar 365 365 310 285 235 220 170 170 115 90 80 50 0

Balkasar 390 390 350 310 275 260 220 195 155 130 105 80 40 0

Chakri 455 455 415 390 340 325 285 275 220 210 170 155 115 80 0

Islamabad T.P 520 520 465 440 390 375 340 310 275 260 220 195 155 130 50 0

Sahiwanwala 245 245 210 180 115 105 65 90 130 155 180 195 235 285 350 405 0

Millat 275 275 235 210 145 130 90 115 155 180 210 220 260 310 375 430 40 0

Faisalabad 275 275 235 210 145 130 90 115 155 180 210 220 260 310 375 430 40 40 0

Fateh Jang 550 550 500 475 420 410 370 345 305 290 255 225 190 160 85 30 435 460 460 0

Brahama Bahatar 560 560 505 480 430 415 375 350 310 300 260 235 195 170 90 40 440 465 465 20 0

Burhan 565 565 515 485 435 420 385 355 320 305 265 240 200 175 95 45 450 475 475 40 25 0

Chach 590 590 540 515 460 450 410 385 345 330 290 265 225 200 125 70 475 500 500 65 50 40 0

Swabi 615 615 565 540 485 475 435 410 370 355 320 290 255 225 150 95 500 525 525 95 85 70 40 0

Rashakai 670 670 615 590 540 525 485 460 420 410 370 345 305 280 200 150 550 580 580 150 135 110 85 50 0

Charsada 680 680 630 605 550 540 500 475 435 420 385 355 320 290 215 160 565 590 590 155 150 135 125 95 40 0

Peshawar 715 715 660 635 585 570 530 505 465 455 415 390 350 325 245 195 595 625 625 195 175 160 160 135 85 40 0

BUSES 50 TO 60 SEATS INCLUDING BUSES GREATER THAN 25 SEATS NOTE 4.

INTERCHANGES

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Lahore T. P. 0

Faizpur 50 0




Kot Sarwar 210 210 155 115 40 0

Pindi Bhattian 260 260 195 155 80 50 0

Sial More 285 285 235 195 115 90 25 0

Kot Momin 350 350 300 260 170 155 90 65 0

Salam Chowk 375 375 325 285 210 180 130 90 25 0

Bhera 415 415 375 340 260 235 170 145 80 50 0

Lilla 455 455 405 365 285 260 210 170 115 80 25 0

Kallar Kahar 520 520 455 415 340 310 260 235 170 145 90 65 0

Balkasar 560 560 520 480 405 375 310 285 220 195 155 115 50 0

Chakri 675 675 625 585 505 480 430 405 340 300 260 220 170 115 0

Islamabad T.P 740 740 700 660 585 560 505 465 405 375 325 300 235 180 80 0

Sahiwanwala 350 350 285 245 170 145 90 115 180 220 260 300 350 405 520 595 0

Millat 390 390 325 285 210 180 130 155 220 260 300 340 390 440 560 635 65 0

Faisalabad 390 390 325 285 210 180 130 155 220 260 300 340 390 440 560 635 65 40 0

Fateh Jang 780 780 740 700 625 595 545 505 440 415 365 340 275 220 115 40 635 675 675 0

Brahama Bahatar 790 790 755 715 635 610 560 520 455 430 375 350 285 235 130 50 650 690 690 30 0

Burhan 810 810 775 735 655 630 580 540 475 450 395 370 305 255 150 70 670 710 710 65 40 0

Chach 835 835 800 760 680 655 605 565 500 475 420 395 330 280 175 95 695 735 735 90 40 25 0

Swabi 865 865 825 785 710 680 630 590 525 500 450 420 355 305 200 125 720 760 760 115 85 50 25 0

Rashakai 950 950 910 870 790 765 715 675 610 585 530 505 440 390 285 210 805 845 845 190 175 150 125 85 0

Charsada 1000 1000 960 920 845 820 765 725 660 635 585 560 495 440 340 260 855 895 895 235 210 195 175 135 50 0

Peshawar 1025 1025 985 950 870 845 790 755 690 660 610 585 520 465 365 285 885 920 920 260 220 235 210 175 95 50 0

RIGID TRUCKS INCLUDING 2 AXLE AND 3 AXLE TRUCKS NOTE 5.

INTERCHANGES

Lah

ore

T.

P.

Fa

izp

ur

ka

lash

ah

ka

ku

Sh

eik

hu

pu

ra

Kh

an

qa

h D

og

ran

Ko

t Sa

rwa

r

Pin

di B

ha

ttia

n

Sia

l M

ore

Ko

t M

om

in

Sa

lam

Ch

ow

k

Bh

era

Lilla

Ka

llar

Ka

ha

r

Ba

lka

sar

Ch

akri

Isla

ma

ba

d T

.P.

Sa

hiw

an

wa

la

Mill

at

Fa

isa

lab

ad

Fa

teh

Ja

ng

Bra

ha

ma

Ba

ha

tar

Bu

rha

n

Ch

ac

h

Sw

ab

i

Ra

sha

ka

i

Ch

ars

ad

a

Pe

sha

wa

r

Lahore T. P. 0

Faizpur 50 0




Kot Sarwar 260 260 195 130 50 0

Pindi Bhattian 310 310 260 195 105 65 0

Sial More 350 350 300 235 145 105 40 0

Kot Momin 415 415 375 310 220 180 115 80 0

Salam Chowk 455 455 405 340 245 220 155 115 40 0

Bhera 520 520 455 405 300 275 210 170 90 50 0

Lilla 560 560 505 440 350 310 260 220 130 105 40 0

Kallar Kahar 625 625 585 520 415 390 325 300 220 170 115 80 0

Balkasar 690 690 650 585 480 455 390 350 275 235 180 145 65 0

Chakri 830 830 780 715 625 585 520 480 405 375 310 275 195 130 0

Islamabad T.P 910 910 870 805 700 675 610 585 505 455 405 365 285 235 90 0

Sahiwanwala 415 415 365 300 210 170 105 145 220 260 310 365 430 495 625 715 0

Millat 480 480 430 365 275 235 170 210 285 325 375 430 495 560 690 780 80 0

Faisalabad 480 480 430 365 275 235 170 210 285 325 375 430 495 560 690 780 80 50 0

Fateh Jang 955 955 915 850 745 720 655 630 550 500 450 410 330 280 135 45 760 825 825 0

Brahama Bahatar 960 960 920 855 755 725 660 635 560 505 455 415 340 285 145 50 765 830 830 40 0

Burhan 995 995 955 890 785 760 695 670 590 540 485 450 370 320 175 85 800 865 865 80 40 0

Chach 1030 1030 995 930 825 800 735 710 630 580 525 485 410 355 215 125 835 900 900 95 50 40 0

Swabi 1070 1070 1030 965 865 835 775 745 670 615 565 525 450 395 255 160 875 940 940 125 95 70 40 0

Rashakai 1170 1170 1130 1065 960 935 870 845 765 715 660 625 545 495 350 260 975 1040 1040 245 220 175 150 95 0

Charsada 1210 1210 1170 1105 1000 975 910 885 805 755 700 660 585 530 390 300 1015 1080 1080 285 260 220 175 150 50 0

Peshawar 1255 1255 1215 1150 1045 1020 955 930 850 800 745 710 630 580 435 345 1060 1125 1125 320 300 260 220 175 95 50 0

ARTICULATED TRUCKS INCLUDING ARTICULATED VEHICLES NOTE 6.

INTERCHANGES

Lah

ore

T.

P.

Fa

izp

ur

ka

lash

ah

ka

ku

Sh

eik

hu

pu

ra

Kh

an

qa

h D

og

ran

Ko

t Sa

rwa

r

Pin

di B

ha

ttia

n

Sia

l M

ore

Ko

t M

om

in

Sa

lam

Ch

ow

k

Bh

era

Lilla

Ka

llar

Ka

ha

r

Ba

lka

sar

Ch

akri

Isla

ma

ba

d T

.P.

Sa

hiw

an

wa

la

Mill

at

Fa

isa

lab

ad

Fa

teh

Ja

ng

Bra

ha

ma

Ba

ha

tar

Bu

rha

n

Ch

ac

h

Sw

ab

i

Ra

sha

ka

i

Ch

ars

ad

a

Pe

sha

wa

r

Lahore T. P. 0

Faizpur 80 0




Kot Sarwar 325 325 340 170 50 0

Pindi Bhattian 390 390 405 245 130 90 0

Sial More 440 440 455 300 180 130 50 0

Kot Momin 530 530 545 390 275 235 155 90 0

Salam Chowk 585 585 595 440 310 275 195 145 50 0

Bhera 650 650 660 505 390 350 260 220 115 80 0

Lilla 700 700 725 560 440 405 310 275 170 130 50 0

Kallar Kahar 805 805 805 650 530 505 415 365 275 220 145 90 0

Balkasar 885 885 885 725 610 585 495 440 350 300 220 170 90 0

Chakri 1050 1050 1065 910 790 740 660 610 520 465 405 350 260 170 0

Islamabad T.P 1170 1170 1170 1015 895 870 780 725 625 585 505 455 365 285 115 0

Sahiwanwala 520 520 530 375 260 220 130 180 285 325 390 440 545 625 790 910 0

Millat 595 595 610 455 340 300 210 260 365 405 465 520 625 700 870 985 105 0

Faisalabad 595 595 610 455 340 300 210 260 365 405 465 520 625 700 870 985 105 50 0

Fateh Jang 1235 1235 1235 1080 960 935 845 790 690 650 570 520 430 350 180 65 975 1050 1050 0

Brahama Bahatar 1240 1240 1240 1085 965 940 850 800 695 655 580 525 435 355 190 70 980 1060 1060 50 0

Burhan 1335 1335 1335 1180 1065 1040 950 895 790 755 675 625 530 455 285 170 1080 1155 1155 85 50 0

Chach 1440 1440 1440 1285 1170 1145 1050 1000 895 855 780 725 635 560 390 275 1180 1260 1260 125 95 70 0

Swabi 1500 1500 1500 1345 1225 1200 1110 1060 955 915 835 785 695 615 450 330 1240 1320 1320 195 160 135 110 0

Rashakai 1625 1625 1625 1465 1350 1325 1235 1180 1080 1040 960 910 820 740 570 455 1365 1440 1440 320 285 260 235 195 0

Charsada 1690 1690 1690 1530 1415 1390 1300 1245 1145 1105 1025 975 885 805 635 520 1430 1505 1505 355 330 330 300 260 70 0

Peshawar 1745 1745 1745 1590 1475 1450 1355 1305 1200 1160 1085 1030 940 865 695 580 1485 1565 1565 410 395 370 355 320 175 65 0

PICTORIAL HIGHLIGHTS

DIRECTOR’S COMMENTS

Dr. M. Ehsan Malik

Director

Institute of Business Administration

University of the Punjab

NHA Internship Report

Documents

Transcript of NHA Internship Report