This report is dedicated to my parents

For their endless love, support and encouragement.

STUDENT DECLARATION

This is to certify that I have completed the Internship Project Report SkyeyeImpex
in partial fulfillment of the requirement for the award of Degree of Bachelor of
Business Administration at Global Institute Lahore. This is an original piece of work
& I have not submitted it earlier elsewhere.

Date: January 7, 2016

Signature:

Place: Skyeye Impex

Name: Tayyab Naveed

University Enrollment No.

Global Institute Lahore (GIL)

Internship Report Project

ON
SKYEYE IMPEX

PROJECT TITLE
Analyzing and Finding the Debt recovery period and credit payment period

Submitted in Partial fulfillment of the requirements of

Under Graduate Program (UG)

Submitted by
TayyabNaveed
BBA05A30550-11

Acknowledgment

First and foremost I would like to express my thanks to God because of His love and
strength that He has given to me to finish this logbook as my internship report. I do
thank for His blessings to my daily life, good health, healthy mind and good ideas.
This internship report is important to fulfill part of the program criteria that is a
requirement to fulfill the Bachelor Program in Business Administration at Global
Institute Lahore. I know that there are still many lacks of arranging this report even
when doing my job training and I thank to those who have supported me to perform
the job training up to carrying out this report. Hereby I want to give my special
thanks to;

* Special thanks to "Mr. Anas Tariq" for give opportunity to me to learn and get the
real work experience.
* Mr. Muhammad Bilal Ahmed- excellence in supervision and devotion to inspired
during my internship. Without his untiring assistance, direction, encouragement,
comments, suggestions, continuous guidance, support, ideas and constructive
criticism throughout this internship, this internship program could not be well.
* Mr. Moazzam Ali Haider- my beloved lecturer for her kindness, advice,
knowledge, patience, and time to teach me to be more confident person that I am
going to use in work world.
* Friends - Special thanks to all my friends for sharing their experiences, time and
commitment especially during finishing this internship program. I am grateful
because I have a lot of friends were helps and support me throughout the course of
completing the internship program.

Executive Summary

The following report describes the activities carried out during internship at the SKYEYE
IMPEX. Skyeye Impex is the flooring company which import and export flooring material from
the other countries. The major part of the SkyeyeImpex demand on its import of flooring
material from the other countries. The document contains information about the organization and
the responsibilities performed by me throughout the period between April to June 2015.
SkyeyeImpex is currently facing the financial issue because company major business demand on
its imported product from the other countries. Sometimes when they import product they have to
borrow some amount from the financial institute and on which they have to pay interest or share
their profit.

Introduction:-..............................................................................................................6
Mission/Vision:-........................................................................................................6
Values....................................................................................................................6
Departments:-.............................................................................................................7
o

Board of Director...............................................................................................9

Chief Executive Officer.....................................................................................9

Audit Department..............................................................................................9

Finance..............................................................................................................9

Sales & marketing.............................................................................................9

Human Resource...............................................................................................9

Services..............................................................................................................9

International.......................................................................................................9

Product mix:-..............................................................................................................9
Market Mix:-.............................................................................................................14
Promotion:-.............................................................................................................14
Swot Analysis:-..........................................................................................................16
SkyeyeImpex SWOT analysis 2014....................................................................16
Strengths..............................................................................................................16
Weaknesses..........................................................................................................16
Opportunities.......................................................................................................16
Threats.................................................................................................................16
Explanation of Swot Analysis..................................................................................17
Strength:-................................................................................................................17
Weakness.............................................................................................................17
Problem......................................................................................................................20
Financial analysis......................................................................................................21
Financial Ratios........................................................................................................23
Debtors turnover ratio:-.........................................................................................23

Creditor turnover ratio:-..........................................................................................23

Average collection Period:-.................................................................................23
Findings:-...................................................................................................................24
Conclusion:-..............................................................................................................25
Suggestion:-...............................................................................................................26
References:-...............................................................................................................27

Introduction:Skyeye Impex is a private manufacturing company in Lahore, PakistanWith30 employees the

company is much larger than the average manufacturing company.
SkyeyeImpex flooring is fully conforming to the international standards. By adopting Germany
advanced manufacturing facilities, international leading technologies, Skyeye Impex becomes
the leading company in the field of flooring. Combining rolling and paint-cutting together. The
all flooring material which they use they imported it from the different countries. SkyeyeImpex
products have passed the inspectation of China Building Material Detection Center, National
Sporting Goods Center as well as National Fireproofing Check Center.
The wide use of Skyeye Impex flooring in many famous buildings around the Pakistan not only
creates a glorious name for its products, but also verify its reliability and high quality. Its
diversity and abundant colors can greatly satisfy the demands from the aspects of design and
utility performance. Due to its advantages like over-long useful life and environment protection,
Skyeye Impex flooring has an amazing cost performance. There is no exaggeration to say that
Skyeye Impex has integrated top class quality into permanent competitiveness tog. Skyeye
Impex flooring products are sold worldwide and well received among our foreign cooperative
partners.
Our motto is simple To provide our discerning clientele materials that are not only durable but
also cost effective and easy to maintain
Mission/Vision:-

The Way Forward

Values:

Ethics

Employee Loyalty

Customer satisfaction

Environment friendliness

Continuous Growth

Technology Advancement

HR Policies & Procedures: Skyeye Impex, are committed towards a mode of management that aims at building a
work force that is motivated and aligned to organizational objectives.
At Skyeye Impex many HR practices are used for the employees, but these practices can
b categorized on the following practices basis:
Reward and Recognition
Occasional Gifts
Annual free medical checkup
Uniform Distribution
Sports day and Annual day
Birthday celebration of employees
Idea acceptance award
Employee of the month
Safety related training
Performance Appraisal
Employee recognition program
Home visit a practice in which staff members visit the associate's house and take the
pictures of their kids and these pictures are pasted in offices, which encourages the
employees.

Departments:The Company have different departments which are working nationally and internationally, the
hierarchy of the company is like that Board of directors and then there is a CEO of the company
who is responsible for the loss and profit of the company then there is an audit Department
which regulates the company audit and then there are 4 main departments in which marketing
and sale department have 2 more further subsidiaries which are working nationally and
internationally.
BOD

CEO

Finance

Sales &Marketing

International

National

Audit Department

Human Resource

Services

o Board of Director
o Chief Executive Officer
o Audit Department
o Finance
o Sales & marketing
o Human Resource
o Services
o International
o National

Product mix:The SkyeyeImpex has a wide range of Floors.

1. Laminate Floors

2. Hardwood Floors

3. Resilient Floors

4. Linoleum Floors

5. Non-Slip Floor

6. Stain Resistant Floor

7. Wooden Pattern Flooring

8. Multi-Function Flooring

9. Artificial Grass

10. Antistatic Floors

11. Sports Floors & Surfaces

Their services include not only supply of material but also their installation and after sales
service.

Market Mix:The marketing mix of SkyeyeImpex has been changing over time with more and more products
being added such that today it has 11 products.

Our marketing mix depends mainly on the product and product marketing, but we are also
leveraging a lot more in our presence in channels than on our direct national branding. The
channels are the key to our recent growth and our prospects for additional growth.Product
marketing has to emphasize the benefits of our unique combination of technological expertise,
ergonomics, and fine Flooring. We need to sell pride of ownership and workmanship, and
prestige. That has to come out in our packaging, finishing, shipping, and collaterals. Product
marketing's most important challenge is the problem of delivering it to the customer.

Promotion:Our promotion strategy is based mainly on making the right information available to the right
target customer. We can't afford to sell people on our expensive products, because most don't
have the budget. What we really do is make sure that those who have the budget and appreciate
the product know that it exists, and know where to find it.
The marketing has to convey the sense of quality in every picture, every promotion, and every
publication. We can't afford to appear in second-rate catalogs with poor illustrations that make
the product look less than it is. We also need to leverage our presence using high-quality catalogs
and specialty distributors.
Service:The service aspect of SkyeyeImpex marketing mix is limited in traditional terms. That is, due to
our high degree of quality in manufacturing and assembly, our product lines do not require
continued maintenance or service. However, we do consider our customer service to be key to
the retention of customers.
Sales Plan:Our strategy focuses first on maintaining the identity with the high-end buyer who appreciates
the best available quality, but is also very demanding regarding computer systems and
technology. We've been able to find these customers using a combination of direct mail catalogs
and direct sales to distributors.
For the next year we continue to focus on growing presence in the high-end direct mail catalog
that finds our specialty customer. We will work with Sharper Image and Broadview more than
ever. Our work with distributors has been promising. We hope to continue the relationship with
distributors selling directly to larger corporations, even though this takes working capital to
support receivables.

Direct Mail:SkyeyeImpex using mail shots to get the attention of customers is very common and is done via
the postal system. E-mails can also be used to do the same job and can be the more cost-effective
approach. Promotions such as leaflets, brochures and newsletters are often the main content for
mail shots, although there are no limitations. Mail shots can reach a large audience, cheaply.
Telemarketing:They also use telemarketing. Telephone calls can be used to make independent sales or
can be used as a follow up procedure to mail shots. Once a customer has received and
browsed your mail, they may have little or no intention to act and so a telephone call may
just build up their level of interest.
Survey / Research:Market research is one of the most important areas of marketing.SkyeyeImpex company
believe that without the research, you will find yourself making wrong decisions and
unnecessary spending that will eventually lead to business failure. Researching the market
will help you find answers to how much you will price your product, who to sell it to and
where (to name a few). It will also give you an insight into the best methods of
penetrating the market and becoming competitive.

Swot Analysis:SkyeyeImpex SWOT analysis 2014

Strengths

Weaknesses

Product diversity

Low pricing

Extensive distribution channel in major cities

Much weaker brand awareness

of Pakistan
Weak distribution
Successful marketing and advertising
Lack of consumer knowledge

campaigns
Proactive and progressive

Shortage of Funds

Opportunities

Threats

Growing new designs and models

Imitators

Diversification

Competition

Increase in market day by day

local brands in different countries

Explanation of Swot Analysis

Strength:The strength of SkyeyeImpex is that it has wide variety of products and they are different and
unique from each other.
SkyeyeImpex has extensive distribution channel in all the major cities of Pakistan like
Islamabad, Karachi, Lahore, Peshawar etc.
They have very attractive and beautiful booklets, emails and advertisement channels that make
them different from other.
The special group of people is working on this task and making it more effective, instead of the
one that waits for things to happen and then tries to adjust to them.
Weakness:Skyeye impex major weakness is low pricing due to competition. There are many other local
companies who provide the copy of our product in much cheaper price.
SkyeyeImpex is new in market and the company name is not a well known name in the market.
As our business is about import and export so we need large amount of investment to book the
order.
As time is passing our business is expanding day by day and to expand our business we have to
build strong and big distribution channel.
People have very little knowledge about flooring. They didnt give importance to brand in
flooring they are not aware about brands in flooring.
Opportunities:The best opportunity skyeye impex have they are creating new designs and models day by day
and they are updated with all the need of time.
Skyeye impex has diversification in its product firstly they started with laminate flooring now
they are dealing in all type of flooring. The flooring for sports club, Gym, housing etc.

Threats:The biggest threat skyeye impex is facing is Imitators that anyone else can make his brand and
come in the market.
There is very much Competition in flooring a lot of companies is adding in this competition with
new products and style.
There are a lot of local brand in different countries who can sell their product in cheap prices and
break our market share.

Problem:
The SkyeyeImpex Company is flooring company who Import the wood flooring from other parts
of the world such as laminated flooring. The company is going through lots of difficulties while
importing from other country. When company orders the wood flooring from other countries
they have to pay full payment in advance in order to get the product and from consumer they
charge 50% payment in advance and remaining 50% they charge after the full delivery of the
product. The problem is that when buyer goes into the world market for importing wood flooring
they have to pay all in once and when other retailer buy from the seller whos imports wood
flooring have to pay 50 percent of the payment instead of all in once. Company borrows the
money from banks or other financial institute in order to pay fully amount while ordering.
However, company has to pay high interest to get the full amount from the banks or other
financial institute. In this way company credit is increasing and they have to pay interest on all
the amount they have borrow or share their profit due which there profit ratio decreases. The
difficulty SkyeyeImpex is facing now is becoming a huge problem. Company is going into more
debt as well as credit and has reduced profit. Therefore, company has less profit while doing this
business because profit they are making they have to pay interest from it so in the end of they
have very less profit in hand. This is the major problem which the company is facing right now
and this problem is reducing the profit share of the company. This thing must need to b resolve.

Financial
SkyeyeImpex
analysis
Income Statement
For the
yearEnded
December 31,
Particulars
Sales
Cost of goods sold
Gross profit

2013

2014

70,00,000
(42,00,000)
28,00,000

76,30,000
(44,10,000)
32,20,000

7,90,000

8,10,000

256,920
1,90,000
1,95,000
2,45,000
1,19,256
10,03,824
150573
853,251

396,000
1,25,325
2,96,800
2,85,000
1,56,600
11,50,875
172631
978,244

Salaries
Offices or store
supplies
Repair &maintain
Utilities Bills
Advertising expenses
Transport & travelling
Net profit
Tax
Profit after tax

SkyeyeImpex

Balance Sheet
Assets
Current Assets
Cash
Account Receivable

2013

2014

780324
1299332

980324
1036000

Total C.A

2079656

2016324

564000
45120
609120

480000
38400
518400

Total Assets

2688776

2534724

liabilities and owner's

equity
Account payable
other C.L
Trade creditor
Total C.L

5460005
602000
446771
1588776

525104
711000
300620
1534724

Long term debt

550434

460000

Retain Earning

549566

540000

2688776
December31,

2534724

Plant and equipment

Depreciation (8%)
Fixed Assets

Total Liabilities

As
on

Financial Ratios
Debtors turnover ratio:The receivables turnover ratio is an activity ratio measuring how efficiently a firm uses its assets.
Receivables turnover ratio can be calculated by dividing the net value of credit sales during a
given period by the average accounts receivable during the same period.
Debtors turnover ratio= credit sales/ average debtors
Creditor turnover ratio:A short-term liquidity measure used to quantify the rate at which a company pays off its
suppliers. Accounts payable turnover ratio is calculated by taking the total purchases made from
suppliers and dividing it by the average accounts payable amount during the same period.
Creditor turnover ratio= total supplies purchases/ average account payable
Average collection Period:The average collection period is the average number of days between 1) the date that a credit sale
is made, and 2) the date that the money is received from the customer. The average collection
period is also referred to as the days' sales in accounts receivable.
Average collection Period= 365*debtors/sales

Average payment period:A company's average payable period. Days payable outstanding tells how long it takes a
company to pay its invoices from trade creditors, such as suppliers.
Average payment period= 365/ C.T.R
Debtors turnover ratio in 2013= 1299332/1167666
= 1.112
Debtors turnover ratio in 2014= 1036000/1167666
= 0.887
Credit turnover ratio in 2013= 986776/906250
=1.088
Credit turnover ratio in 2014= 825724/906250
= 0.912

Sales in 2013= 4865301

Sales in 2014= 4684000
Average collection period in 2013= 365* 1299332/70, 00,000
= 67.75
Average collection period in 2014= 365*1036000/76, 30,000
= 49.55
Average payment period in 2013= 365/1.088
=335.47
Average payment period in 2014= 365/0.912
= 400.21

Findings:The average collection period in 2013 and 2014 was 67.75 and 49.55 which indicates that
average collection period is improving which is good for company. Debtor turnover ratio and
credit turnover ratio is also improved from the last year as DTR and CTR in 2013 is 1.112 and
1.088 on the other side in 0.887 and 0.912. Average payment period in 2013 is 335.47 and
Average payment period in 2014 it is 400.21 which show that it had increase from the last year
which is not good for the company and this thing should be improved to make company
performance better. If we see from the past record the company performance is improved from
the last year.

Conclusion:I have learned the following things during my internship at Skyeye Impex.
1. Observe and learn how professional manage themselves at work place and met
their assigned deadlines.
2. I go through different departments during my internship.
In accounts department I have learned from professional accounts that how books
of accounts are maintained practically and also worked in payroll department and
learn about their salary related accounts.
I have also assisted the manager in conducting interviews and manage cvs of
applicants and also called them for interviews.
3. This was a fantastic experience for me to work with this dynamic and honest staff
over there.

Suggestion:The company can implement one thing in order to prevent this difficult situation is that company
can look for the investors or make some short contracts on which company dont have to pay
high interest rate or share their profit. They can also make some sleeping partners whom only
investment can be use and they can give some little part in profit or they can make some change
in company polices that they can take full payment from the buyer/customer. They can also make
contract with any bank who can lend some money to Skyeye Company in order to grow their
business and become partner in the profit instead of taking interest from the company. The
Skyeye Impex company can give those investor little bit of profit and save their self by not
paying high interest to the banks or other financial institute. This way company can make profit
and get to know more investor in the market to grow their business.They can also solve this
problem by making sleeping partners or contract with some financial institutes on low interest
rate.

References:http://www.ifloor.com/laminate-flooring-brand-wars
http://www.consumerreports.org/cro/flooring/buying-guide.htm
http://www.fcnews.net/2013/07/flooring-companies-make-the-grade-in-consumerreports/
http://www.consumerreports.org/cro/flooring/buying-guide.htm
http://www.consumerreports.org/cro/flooring.htm
http://www.marketing-4-you.com/marketing-channel/wood-floors-marketing.html
http://www.mplans.com/office_furniture_maker_marketing_plan/marketing_mix_fc.php
http://www.decora.com.pk/vinylflooring/
http://www.made-in-china.com/cs/hot-china-products/Wood_Flooring.html?
gclid=Cj0KEQiAqqO0BRDyo8mkv9y259EBEiQApVQD_aureQDqEBwRJ2mqzMRFF
BKV3mYHJ-LNz9yD_YRjWTYaAokA8P8HAQ
http://www.firstfloor.com.pk/Corporate.aspx