University of Education

Lower Mall Campus, Lahore

Department of Economics and Business Administration

Internship Report
Superior Group of Colleges
Submitted By:
BBA-F15-108
Saher Wajid
Session 2015-2019
Submitted on 09-September-2019

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 University of Education
Lower Mall Campus, Lahore
Department of Economics and Business
Administration

LETTER OF UNDERTAKING

This internship report was submitted by Saher Wajid D/o Syed Wajid Ali Shah Roll no.108
for the partial fulfilment of the requirements for the degree of

BBA (HONS)
Session (2015-2019)

with specialization in

MARKETING

And is hereby accepted by the evaluation committee

Internship Supervisor ________________________

Principal ________________________

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Internship Certificate

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 DEDICATION

I dedicate all this work to my teachers who helped me in all the problems that arises during
my studies and my family especially my mother with deepest gratitude whose love and
prayers have always been a source of strength for me and she always back me in every
decision I take in my educational and social life.

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 ACKNOWLEDGEMENT

It is an honor to finally see this work accomplished. Although, this type of work is new for us
but still, we are happy with the level of success, we achieved at the end. At this stage, we feel
it obligatory to acknowledgement the help and support of people without whom this work
could not be made to the quality it is. Firstly, we are thankful and grateful to our respected
parent and elders who made it practically possible to continue our studies to bachelors’ level
so that we are offered to participate in this type of project report, through which we have
gained wonderful experience.

In performing our project, we had to take the help and guideline of some respected persons,
who deserve our greatest gratitude. The completion of this assignment gives us much
pleasure. I would like to show my gratitude to my teachers for giving me a good guideline for
assignment throughout numerous consultations. I would also like to expand my deepest
gratitude to all those who have directly and indirectly guided me in my whole study program.

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 Executive summary:

In this report i have done the analysis of Superior Group of Colleges. All the discussion about
the history, mission, vision, core competitors and all the major and minor things that are
related to Superior College is present in this report. Before the introduction of the Superior
College I have introduced the whole Service sector I have tried to done complete analysis of
Education sector. In this report there is the information about the introduction, corporate
objective Business volume of the College. Complete information related to marketing, human
Resource Management and finance. Critical analysis of micro environment and macro
environment is also done. In HRM portion there is the complete discussion about the HR
planning, job analysis of the College, training and selection compensation policies. There is
also Ratio analysis, horizontal analysis and vertical analysis of Superior College along its
competitor is also done in the Finance portion. SWOT analysis of the Superior College is also
done. That what is the Strength, weaknesses, opportunities and threats of the Superior
College are.

Superior College has been serving this Country for over nineteen years. It has differentiated
itself through its high quality Educational System and positioned itself as one of the best
educational institute. While targeting the educational system and demand conscious people
throughout the country.

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Contents
University of Education .......................................................................................................................... 1
University of Education .......................................................................................................................... 2
Internship Certificate .............................................................................................................................. 3
DEDICATION ........................................................................................................................................ 4
ACKNOWLEDGEMENT ...................................................................................................................... 5
Executive summary:................................................................................................................................ 6
Brief Introduction to the Sector .............................................................................................................. 8
Education Sector ..................................................................................................................................... 9
Overview of the Organization ............................................................................................................... 10
Corporate Objective .............................................................................................................................. 12
Product Line:......................................................................................................................................... 14
Programs and Courses in the Superior College Lahore is ............................................................. 14
Organizational Structure ....................................................................................................................... 15
Main Offices ......................................................................................................................................... 15
Brief Introduction of all the departments............................................................................................. 16
Plan of Internship Program ................................................................................................................... 18
Training Program .................................................................................................................................. 19
Marketing Functions ............................................................................................................................. 23
Programs and Courses in the Superior College Lahore is............................................................. 23
Price ...................................................................................................................................................... 23
SWOT Analysis: ................................................................................................................................... 25
Strengths: .......................................................................................................................................... 25
Weaknesses: ...................................................................................................................................... 25
OPPORTUNITIES:........................................................................................................................... 25
Threats: ............................................................................................................................................. 25
CRITICAL ANYLISIS: ........................................................................................................................ 27
Micro environment analysis of Superior College ............................................................................. 27
Macro environment analysis of Superior College ............................................................................. 28
Financial Ratio Analysis of Superior Group of Collage ....................................................................... 30
Conclusion ............................................................................................................................................ 46
Annexes ................................................................................................................................................ 47

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Brief Introduction to the Sector

The service sector is the third layer in the three sector economy. In its place of the product
production, this sector produce services maintenance and repairs, training, or
consulting. Examples of service sector jobs contain tours, nursing, and teaching. Almost in
every state the service sector has a significant share in the Gross Domestic Product (GDP),
offering career opportunities to the citizens, and also offers inputs and public services for the
economic growth and prosperity. Experts said that trade in services can enhance the
economic situation and even provide a range of traditional and latest export opportunities.

Many service sectors like education, health, water and sanitation sectors, are also directly
relevant to attaining social development targets. Figure below give us the brief idea of the
different sectors;

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Education Sector
Education is the process of facilitating learning or the acquisition of Knowledge, skills,
values, beliefs and habits. This sector included Teaching, Training, Discussions and direct
research. Education often takes place under the guidance of trainers and teachers. However
one who want to learn can learn from self-studies. Education can take place
in formal or informal settings and any experience that has a formative effect on the way one
thinks, feels, or acts may be considered educational. The methodology of teaching is
called pedagogy.
Formal Education commonly divided into different stages such as preschool or kindergarten,
primary school, secondary school, college and then university level.

Formal education commonly divided into different stages Such

as preschool or kindergarten, primary school, secondary school and then college, university,
or training program. There is a movement for education reform also.

Right to education has been recognized in our country in each political tenure. Government is
working on the equal standard of education for everyone also education is free and
compulsory upto certain age and standards.

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Overview of the Organization
We, at Superior, are steered by our values. ‘Facilitating superior human beings’ was the
intent which gave rise to the Superior College Lahore. With over 250 college campuses all
around the country, we strive hard every day to achieve our mission. Established in 2000,
Superior Group of Colleges is a non-profit private higher education institution located in the
urban setting of the metropolis of Lahore (population range of over 5,000,000 inhabitants),
Punjab. This institution has also branch campuses in the following location(s): Gulberg-III.
Officially accredited and/or recognized by the Higher Education Commission, Pakistan,
Superior Group of Colleges is a medium-sized (enrollment range: 6,000-6,999 students)
coeducational higher education institution formally affiliated with the Islamic religion.
Superior Group of Colleges offers courses and programs leading to officially recognized
higher education degrees such as pre-bachelor degrees (i.e. certificates, diplomas, and
associate or foundation degrees), bachelor degrees, master degrees, doctorate degrees in
several areas of study. The degree levels and areas of study matrix below for further details.
This 19 years old higher-education institution has a selective admission policy based on
entrance examinations and students' past academic record and grades. The admission rate
range is 60-70% making this Pakistani higher education organization a somewhat selective
institution. International applicants are eligible to apply for enrollment. Our efforts of making
Superior University recognized by well-reputed international educational institutions led us to
this time when we have more than hundred universities on board with us from across the
globe. We feel safe to say that Superior University is now considered to be one of the best
universities in Pakistan.

Vision
To be a leading Pakistani university driving excellence in learning, innovation and research.

Mission
We are committed to transform the lives of our students, faculty, staff and alumni by
providing an excellent learning and research environment which ensures success in their lives
and career. We believe in developing emotionally intelligent Superheroes who can create
social and economic impact through entrepreneurial mindset to build a Superior Pakistan.
Our Values: Team Work, Student Success, Excellence, Innovation, Agility, Fairness

I believe educational excellence is the best strategy to strengthen our national identity and we
at Superior aim at encouraging new ideas to bring smiles through facilitation.

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Professor Dr. Chaudhry Abdul Rehman Chairman The Superior Group
Your years at Superior will surely make you discover yourself and will give you a chance to
think beyond your imagination. You and your dreams are important to us; let’s materialize
them together.

Dr. Sumaira Rehman Rector Superior University

We believe our strength lies in individuals therefore we leave no stone unturned to
incorporate the highest standards of morality, ethics, empathy, self-respect and self-
Accountability among our students.

Pirzada Sami Ullah Sabri Director General

To ensure that our country is steadfast on the path of prosperity, our youth needs to be well-
versed with global trends. And for that we are offering you a complete package.

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 Corporate Objective
Superior College Lahore is a landmark institute of quality education, homelike feasible study
environment, world class college facilities and trainers like teachers to help you get not only
educationally qualified but gain lifelong values. Situated at the centric location of Kalma
Chowk, Lahore campus is very easily reachable from any point or distance in the city. The
study culture at Superior College Lahore is reflective of pure Superior values and mission of
‘facilitating Superior human beings’. This is a place where students learn the art of living
wholeheartedly and with a ‘sense of purpose’. ‘Excellence’ is achieved in academics, co-
curricular and recreational activities. ‘Team work’ is learnt through sports and team building
adventurous tours to the national and international destinations. ‘Creativity & innovation’ is
enhanced through opportunities of working on skill-based projects while ‘reward for
performance’ is ensured at every success to boost a passion for winning. The students at
college know the fact their teachers care about them which makes them feels honored,
protected and valued. Superior guides its students to go confidently in directions of their
dreams and empower them with the spirit to live the life they had only imagined.

When you enter Superior you just know yourself. But after that you laugh, cry, play,
compete, respect and love each other because you have become Superior with your actions.
The quest for learning never ends here; it keeps on taking new interesting levels via practical
labs, projects and assignments. The overall emotionally intelligent environment allows
laughter and friendships to make the campus life a memorable phase of life. We believe that
due to these characteristics and highly dedicated experienced faculty members, Superior
College Lahore has brought us academic positions in Lahore board. Our hard working
teachers and willing students together won these laurels for the group. We aim and prosper to
keep the same history of excellence intact in future as well.

Market Standing:
Superior college is one the biggest college of Pakistan in term of students and number of
campuses in the country. Having partners in over 15 countries, the International Office sends
students and faculty for training programs, cultural exchange programs, research programs
and academic exchange programs. The sole aim of the office is to expand the horizons of our
superheroes by providing them the best opportunities.

Policy of the Organization

 Concurrent admission at any other institution is not allowed.

 Admission obtained on false documentation is liable to disciplinary action.
 Students must be respectful to the faculty, administrative staff and fellow students.
 Any political activity or indecent behavior in or around the campus is a punishable offense.
 Students must carry ID cards on the campuses and at Superior functions.
 All students are required to follow the dress code.
 Students must clear their dues before appearing in mid-term and final examinations, failure
to do so will prevent them from appearing in their respective examinations.

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 In case a student does not maintain 3.0 CGPA in a semester his/her fee scholarship will be
terminated.
 No makeup assignments, quizzes and presentations are allowed after due dates, unless
permission is sought from the concerned teacher.
 Semester dues are non-refundable & non-transferable for any reason.

Competitors
Main competitors of the Superior College in private as well as government sector are;

 GC College
 MAO College
 Civil lines College
 FC College
 Punjab group of colleges
 Aspire College
 APEX College

Business Volume:
Over 7000 students enrolled and more than 250 campuses across the country. The Superior
College is a private institution with non-profit entity type. Also international collaboration
and international students also can take admission.

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Product Line:

Programs and Courses in the Superior College Lahore is

 FSc Pre Medical

 FSc Pre Engineering
 ICS Computer Science
 FA Arts
 I.Com

Also Bachelors Degree program

 B.A
 BSC
 BCOM

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Organizational Structure
The structure of the organization is as under

Hierarchy Chart

principal

HR Manager /
Vice Principal

IQ Leader

EQ Leader

CE

Teaching Staff

Incharge
Student Affairs

No. of Employees
Over 100 employees are working in the college including teaching staff.

Main Offices
Although Superior College has different campuses in different cities but the main
Office is located in the city of Lahore situated in Gulberg III Lahore.

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Brief Introduction of all the departments
Introduction of all Departments

 Operations Department
 Deposit Department:
 Human Resource Department:
 Credit Department:
 Finance Department:

Operations Department:

It is concerned with the operational functions in general collage, which are concerned with
the routine working of the collage. Any problem or ambiguity arise in any branch working is
rectified and corrections are suggested by this division. Operations department is involved
with each customer entering in the branch till the disposal of his transaction either in one way
or the other.

Deposit Department:

This department promotes over all business of collage. Deposits are the lifeblood of any
collage. Without deposits collage cannot perform any function of collage. This department
fixes the deposit target of every branch by keeping an eye over the potential customers in that
area. It gives motivation to branches to achieve targets through different campaign and
schemes like cash prizes and special increments. Terms and condition for deposits is also
fixed by this department. Almost all the transactions involving receipts of funds from general
public, associations, organizations and other clients and payments thereto are dealt by this
department at branch level.

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Human Resource Department:

This department deals mainly with the work force. Jobs and task specification, employees’
incentives, employees’ career development etc. Human resource department works for the
development and benefit of the employees. Hiring , recruiting, and periodical training is also
done by this department. All the awards, rewards and punishments to the employees who are
found delinquent in their duties are decided by this section.

Credit Department:

This division controls over all credit policies of the SUPERIOR like sanction of loans and
also keeps check over securities, mortgage, hypothecation or pledge. It also fix the rate of
markup and other decisions concerning with credit. Product development, risk rating ,
categorization of borrowers and risk management decisions are finalized by this department.

Finance Department:

It controls the routine financial matters, the permission of special expenditures incurred in the
branches and other such cases, The Daily position and HO extracts and daily send to this
division by all the branches. This division not only estimates the profit and loss of every
branch but also prepares over all income statement and balance sheet of the complete collage.
It also keeps record of total deposits of the collage and then their classification in the form of
loans into different sectors of economy. It keeps eye on total worth of the collage.

Comments on the organizational structure

Superior College Organizational structure is affecting decision making related to roles,
functions, authority, and responsibilities of different individuals within parts of an institution.
Failure to recognize the importance of the organizational structure affects the organization in
terms of changes in circumstances and communication in micro or macro levels therefore,
this structure remains important in terms of achieving goals and results.

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Plan of Internship Program
In this point I will tell you about my plans of
Internship program. In which department I do my training and how much time I give to
departments. The details are as under;

Brief introduction of College Campus:

College building is situated in Hinjerwal girls

campus. Building measurement is nearly 2 Canal and there are 3 floors of the building.
Nearly 100 vast rooms in the college and having a big parking place.

Starting and Ending Date of Internship:

Starting Date of internship 1st July 2019

Ending Date of Internship 31st August 2019

It is two months long training program. In these two months I understand the many things
about the practical life as I came to know what I studied in my whole university life.

Training Departments

I worked as internee in the Admission Department and doing my

whole training in this department as the time I started my training new admission is started.
So they ask me to work in this department as working pressure in this department is on a high
at the moment.

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 Training Program

I worked in administrative department of superior college specifically in admission office

which are responsible for approaching and corresponding with potential students, giving
Presentations or creating brochures and documents providing information on their college.
Admission officers typically work for postsecondary educational institutions however, they
may work for any school, college or group that has an admission process. Their job duties
include serving as a source of information for potential applicants and helping them with
the admissions process. If we talk about the education of staff so At least bachelor's level
degree is required for admission officer or more than that it could be any degree but you
should have strong command on marketing and communication skills. Admission officers,
mainly work for an institution of higher education to recruit and communicate with new
students from a variety of venues. An admission officer might be responsible for connecting
with students and convincing them for admitting in there institute, there working also includes
calls to gather inquiries and to tell people that we exist strongly in market and you should come
and visit us At least once, when they come to visit admission officer tries his best to convince
them if they agree they admit the student as soon as possible if they ask for a time to think admission
officer follow up them on daily basis by calling them. other than that admission office also works
for student registrations and submissions of forms and when the admission campaigns end there
basic work is for coordination.

Admission Office hierarchy

Admission office is consist of following members;

Admission
Incharge

Internee internee

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 Admission
officer

Internee internee

Registration
officer

Internee internee

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 Admission Process

Admission Process

Visit in Admission Cell Advertisement about

Admissions

Information about Superior College

Documentation Process

Procedure of
Admission

If candidate is eligible

Eligibility
Criteria

Admission granted/candidate
become student

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Total number of Employees:

Total number of employees in admission department is 9. They

all are efficient and working hard. As this is the first and fundamental department of the
college and everyone who wants to take admission in the college must visit this department.

Online Admission Department:

It is the need of the hour to make the admission process

easy. It is for this reason online admission process is started in the college. One can easily
submit the form from online system.

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Marketing Functions

Product

Programs and Courses in the Superior College Lahore is

 FSc Pre Medical

 FSc Pre Engineering
 ICS Computer Science
 FA Arts
 I.Com

Also Bachelors Degree program

 B.A
 BSC
 BCOM
 ADP (Computer Sciences / Accounting & Finance)

Price

Fee structure of the Superior College is as under

Sr. no. Programs Admission fee Misc. Tuition Fee Total Package
1 Fsc. / Bsc. 25000/- 10000/- 75000/- 110000/-
2 ICS 25000/- 10000/- 54500/- 89500/-
3 I.COM 25000/- 10000/- 39500/- 74500/-
4 F.A 20000/- 5000/- (per 88000/- 392000/-
semester)

Sr. no. Programs Admission fee Misc. Tuition Fee Total Package
1 Bsc. 25000/- 10000/- 75000/- 110000/-
2 B.com 25000/- 10000/- 54500/- 89500/-
3 B.A 25000/- 10000/- 39500/- 74500/-
4 ADP (CS) 20000/- 5000/- (per 88000/- 392000/-
semester)
5 ADP (A & F) 15000/- 5000/- (per 71000/- 319000
semester)

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Distribution Channels

There are 300+ campuses all over the country. we called

different channels of the distributions.

Promotions

 Electronic Media
 Print Media
 Broachers & pamphlets
 Flexs
 Social Media

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SWOT Analysis:

Strengths:
 Faculty
 Fee structure
 Links with different foreign universities
 Spacious campus
 HEC recognized university:
 Research and development
 Scholarship programs
 Location of the campus
 Training Programs

Weaknesses:
 Graduate and undergraduate degree programs
 Hostel facility
 Underfunding in departments and programs
 Resource Limitation
 Electricity Backup
 Lack of Infrastructure
 Campus life and facilities
 Administrative data systems
 Publicity

OPPORTUNITIES:
 Boom of young generation
 Propensity to spend on education
 HEC policies
 Increasing literacy rate
 Mind shift towards modernity/cultural shift

Threats:

 Extremist/ religious based viewpoint of people:

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There are some people with the typical narrow minded thinking that girls should not study
higher classes separately. The people consider it to be going towards a more European culture
which is strictly against Islam.

 Growing competitive pressure:

There is an increasing pressure as a lot of competitors are close to our location. Also, they are
improving their curriculums and programs to compete with the leading universities.

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CRITICAL ANYLISIS:

Micro environment analysis of Superior College

Porter's model can be applied to any segment of the economy to search for productivity and
attractiveness. These forces are:

 Threats of new entry

 Bargaining power of people
 Threats of substitute products
 Industry rivalry
Threats of new entry:

As this college has been around for nearly two decades, new entrants could try to capture a
share of Superior College to survive. Superior College has a long history, quality education,
Parents and students satisfaction allowed Superior College to obtain a considerable share of
the education sector. From previous some years number of new colleges entered in an attempt
to grab market share even at the local level.

Bargaining power of People:

Superior College understands the power of new admission and has taken specific steps to
meet their needs. Society is more price as well as quality conscious. Superior college is
incorporating Pricing and quality in its education. Due to high level of grades of students, the
bargaining power of them is high as they ask for the scholerships based education. They can
easily switch from one college to another, Superior College attempt to influence the
educational sector by controlling the raise the course prices by quality education.There are a
number of institutes in the Education sector offering same courses with low pricing but the
atmosphere and the quality of education is also low there. Superior College recognizes this
power of the general public and strives to ensure that the students of Superior College
remains satisfied. This aspect has helped Superior College to develop brand loyalty from
many of its students and their parents.

Threats of Substitute Products:

Superior College is surrounded by the threat of substitute colleges. Different colleges that
compete directly with Superior College. Competition is high. Responsibility to improve its
quality of education and for this Superior College focused on quality as well as pricing in
order for to be stay competitive. Threat of substitutes for Superior College is also very high.
In all areas of its operations there are multiple other institutions that are offering either
similar courses. For this purpose Superior College has to ensure quality in every aspect of the
student life.

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Industry rivalry:

Industry rivalry for Superior College is very high in no matter what part of the world it
operates in.

Currently, the model recognizes a slight threat of new entrants into the market and a
considerable threat of substitute. Additionally, the model shows that Superior College tends
to preserve and maintain the upper hand over its competitors.

Macro environment analysis of Superior College

A PESTEL analysis is an analysis of the macro-environment that affects all firms.
P.E.S.T.E.L is an acronym for the Political, Economic, Social, Technological, Environmental
and legal factors.

Political factors

Superior College is working in varied groups and it has to face change in regulations in
different places like rural and urban Areas. Superior College has shown its stability in various
new Cities, as they have to compete with the local institution. The Company has to follow
different political changes in the developing of quality education and it provides its courses at
the comparatively higher rates, which most of the people in the general public can easily
afford.

Economical factor:

General public can find it in the cities and in the rural areas because Superior College has
vast and most effective supply chain network. Now most of people become aware of
changing inflation, economic growth and income and raises the number of cost conscious
customers.

Social Factor:

Superior College fulfill their social responsibility, Superior College consider the impact on or
influenced by the interests of their behavior related to persons, interest, and social
responsibility. Superior College specifically including the creation of well-informed students
in society to obey with business ethics, protection of labor rights, environmental protection,
and save resources.

Technological factor:

They have certain goals and objectives which they want to achieve. They want to create and
promote their services to create value for their efforts. They have their sources for increasing
their quality of education and compete it with the other institutions so Superior College focus
on technology to create core-competences. They conduct researches for that and try to get

28
their objective which they have decided. They are promoting their product by creating public
awareness.

Environmental factors:

The Superior College has worked on making Environment better by producing efficient
people in the society. Students know the moral values of the Environment and environment
law is prepared for the protection of environment also Superior College tends to create
environmental friendly courses.

Legal factors:

Superior College’s hiring and promotions laws are to be followed and the people are being
privileged to get the facilities, which are the assets of the Superior College. Important thing is
that Superior College has to follow the foreign regulations as the college has collaboration
with foreign institution.

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Financial Ratio Analysis of Superior Group of Collage
Business Volume Rs.
Total Assets 1,638,92,840
Deposits 1,101,845,283
Advances 615,419,874
Investments 397,958,681
Profit 5,306,783
No. of Branches 300+
No. of Employees 2000+

Critical Analysis of Financial Statement

Financial statement analysis is a process of analyzing the relationship among the financial statements
and their items. It is a valuable tool used by the investors and creditors, financial analyst and other in
their decision making processes related to stocks, bonds and other financial institutions. The goal is to
assess past performance and current financial position and to make predictions about the future
performance of the company.

Ratio Analysis:

Ratio is the relationship between two items of same statement or relationship between items of
different statements. Ratio analysis tells us about the health of the business. Financial ratios are
usually expressed in percentage or in times. All the figures used in analysis are in Rupees. There are
many types of ratios:

1. Liquidity Ratios
2. Leverage Ratios
3. Profitability Ratios
4. Activity Ratios
5. Market ratios

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 Current Ratio:

Current ratio shows firm’s ability to cover its short term liabilities. It is the ratio of current assets to
current liabilities. Higher the ratio greater will be the ability of organization to pay current liabilities.

Formula:

Current Ratio= Current Assets / Current Liabilities

Table 1.Current Assets:

Description 2018 2017 2016

Cash and balance 158230033 158256638 131843291
Balance with other collages 18388738 30895173 28069897
Lending to financial institution 51941866 8280997 44360727
Investments 396411825 342964635 319527254
Advances 620216609 661344807 257109209
Deferred tax liability 10698824 3466503 7973084
Other assets 8991187 80737483 66469884
Total Current assets 1337149082 1286446236 1125353346

Table 2.Current Liabilities:

Description 2018 2017 2016

Bills payable 13894667 14367639 9104710
Borrowings 23014353 51112248 26371675
Deposits and other accounts 1101845283 1038094985 927415132
Deferred tax liability _ _ _

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Other liabilities 72242898 56369170 54701435

Total Current liabilities 1210997201 1159944042 1017592952

Current ratio:

Formula:

Current Ratio= Current Assets / Current Liabilities

2018 2017 2016

= 1337149082 / = 1286446236 / 1159944042 = 1125353346 / 1017592952

1210997201 = 1.11 = 1.10
= 1.11

Interpretation:

Current ratio measures the business ability to pay its short term liabilities. Short term creditors have
interest in current ratio. Standard for current ratio is 2:1. SUPERIOR Current for 2018 is 1.11.It
means current assets are slightly more than current liabilities. It is not a good ratio. Last year current
ratio was also 1.11. In 2016 it was 1.10. There is a very small change in the ratios. Reason is that if
the assets increased in 2017 and 2018, liabilities also increased. Due to this the ratio remains same in
2017 and 2018 but it is more than the 2016.

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 Debt Ratio:

Debt ratio is the ratio of the total debt to total assets. It tells what the ratio of debt in total assets is.

Formula:

Debt ratio= (Total debt / Total assets)*100

Description 2018 2017 2016

Bills payable 13,894,667 14,367,639 9,104,710
Borrowings 21,994,839 51,112,248 26,371,675
Deposits and other accounts 1,101,138,574 1,038,094,985 927,415,132
Liabilities against assets subject to
finance 23,034 38,353 92,739
Deferred tax liability - - -
Other liabilities 71,002,438 56,369,170 54,701,435
Total Debt 1,208,053,552 1,159,982,395 1,017,685,691

Debt ratio:

Formula:

Debt ratio= (Total debt / Total assets)*100

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 2018 2017 2016

= (1208053552 / = (1,159,982,395 / = (1,017,685,691 /

1,364,341,256)*100 1,316,160,457)*100 1,153,480,100)*100
=88% =88% =88%

Interpretation:

Debt ratio shows leverage in the company. High percentage means company has high leverage. Low
means low leverage. SUPERIOR has very high leverage. SUPERIOR has high debt ratio that shows
that high rate of funds are obtained from the creditors. It means it has high risk of default. Invertors do
not like to invest in high risk groups. SUPERIOR should try to lessen his amount of debt.

Equity Ratio:

Equity ratio is the ratio of the total equity to the total debt.

Formula:

Equity ratio= (Total equity / total assets)*100

Table 4. Equity

Description 2018 2017 2016

Share capital 21,275,131 18,500,114 8154319
Reserves 31,538,695 30,305,210 15772124
Unappropriated profit 48,045,930 70,629,475 45344188
Surplus on revaluation of assets 55,426,948 35,952,385 22,562,015
Total Equity 156,286,704 155,387,184 91832646

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 Equity ratio:

Formula:

Equity ratio= (Total equity / total assets)*100

2018 2017 2016

Total equity= Rs.
156,286,704
Total assets= Rs.
1,364,341,256
= (156,286,704/
1,364,341,256)*100
=11%
Total equity= Rs. 155,387,184 Total equity= Rs. 91832646
Total assets= Rs. 1,316,160,457 Total assets= Rs. 1,153,480,100
= =
(155,387,184/1,316,160,457)*100 (91832646/1,153,480,100)*100
=12% =8%

Interpretation:

It means how much portion is financed by the equity. It is cushioning for investor’s against their
investment. They prefer high ratio. SUPERIOR has very low ratio. It will lessen the interest of the
investors. SUPERIOR should try to increase its equity. Equity position in 2017 is slightly better than
the equity position in 2016. Low equity ratio indicates high use of debt.

Debt to equity:

Ratio of borrowed capital to shareholders’ funds is called debt to equity ratio.

Formula: = Debt / equity

2018 2017 2016

Total equity= Rs156,286,704 Total equity= Rs. 155,387,184 Total equity= Rs. 91832646

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Total Debt= Rs. 1,208,053,552 Total debt= Rs. 1,159,982,395 Total debt= Rs. 1,017,685,691
= 1,208,053,552 / = 1,159,982,395 / 155,387,184 = 1,017,685,691 /
156,286,704 = 7.4 91832646
= 7.7 = 11

Interpretation:

This ratio measures ratio of debt to equity. It is also called external internal funds ratio. It helps in
assessing the soundness of long term policies of the company. Investors like this ratio low. But
SUPERIOR has very high ratio. Debts are 7 times more than equity. Now SUPERIOR debt to equity
is better because in 2016 it was 11 times more than equity.

Net profit margin:

Formula:

Net profit margin= (Net profit / Revenue) *100

2018 2017 2016

Net profit= Rs. 5,500,024 Net profit= Rs. 16,887,057 Net profit= Rs. 17,709,165
Revenue/sales= Rs. 99,027,563 Revenue/sales= Rs. 101,125,889 Revenue/sales= Rs. 95,689,741
= (5,500,024 / 99,027,563) *100 = (16,887,057 / 101,125,889)*100 = (17,709,165 / 95,689,741)*100
= 5.5% = 16.7% = 18.5%

Interpretation:

This is the ratio of net profit after taxes to net sales. This is used to measure the overall profitability of
the company and is very useful to proprietors. The profit margin tells you how much profit a company
makes for every Rupee 1 it generates in revenue. The ratio is very useful as if the net profit is not
sufficient, the firm shall not be able to achieve a satisfactory return on its investment. This ratio also
indicates the firm’s capacity to face adverse economic conditions such as price competition, low
demanding. Higher the ratio the better is the profitability. This ratio is very important. SUPERIOR
has 18.5%, 16.7% net profit margin ratio in 2016 and 2017 which is good. In 2018, it decreased to
5.5%. which is not good. Reason of decrease in ratio is increase in the operating expenses.

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Return on Assets:

Formula: = (Net profit / Total assets) *100

2018 2017 2016

Net profit= Rs. 5,500,024 Net profit= Rs. 16,887,057 Net profit= Rs. 17,709,165
Total Assets= Rs. Total Assets= Rs. 1,153,480,100
Total Assets= Rs. 1,316,160,457 = = (17,709,165/1,153,480,100)
1,364,341,256 (16,887,057/ 1,316,160,457) *100
= (5,500,024/ 1,364,341,256) *100
*100 = 1.5%
= 0.40% = 1.3%

Interpretation:

ROA tells about the utilization of the assets. It tells about efficiency of the assets whether assets are
utilizing in efficient way or not. SUPERIOR has very low ROA in both years. It means assets are not
being utilized in the proper way. It needs to change strategy so that ROA can be increased. Decrease
in ratio is due to increase in assets but the profit is decreasing due to increase in expenses.

Operating income:

Formula: = (Operating income / Sales) *100

2018 2017 2016

OP = Rs. 7,078,367 OP = Rs. 24,063,424 OP = Rs. 26,116,002

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Revenue/sales= Rs. 99,027,563 Revenue/sales= Rs. Revenue/sales= Rs. 95,689,741
= (7,078,367 / 99,027,563) 101,125,889 = (26,116,002 / 95,689,741)
*100 *100
= 7.14% = (24,063,424 / 101,125,889) = 27.3%
*100
= 23.8%

Interpretation:

The ratio is the relationship of operating income of the company divided by total revenue of the
company. It is a ratio used to measure a collage’s pricing strategy and operating efficiency. Operating
margin is a measurement of what proportion of a collage’s revenue is left over after paying for
variable costs of production such as wages, raw materials, etc. A healthy operating margin is required
for a company to be able to pay for its fixed costs, such as interest on debt. SUPERIOR has 7.14%
OPM in 2018 which is not good, as compared to last two years because in 2016 and 2017 this ratio
was 27.3% and 23.8% respectively,

Return on Equity:

Formula: = (net profit / equity) *100

2018 2017 2016

Net profit= Rs. 5,500,024
Equity= Rs. 156,286,704
= (5,500,024 / 156,286,704)
*100
= 3.5%
Net profit= Rs. 16,887,057 Net profit= Rs. 17,709,165
Equity = Rs. 155,387,184 Equity = Rs. 91832646
= (16,887,057 / = (17,709,165 / 91832646)
155,387,184)*100 *100
= 11% = 19%

Interpretation:

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This is the measurement of the return which shareholders are obtaining on their investments. The ratio
is the relationship of net income and total equity of the shareholders. Every business has the basic
principal to serve the investor at most the higher the profit the higher the return and more will get by
the shareholders of the company. This is a primary tool to measure the soundness of the business. But
SUPERIOR’s current position is very poor as compared to last two year because its decreasing yearly.

DuPont returns on assets:

The ratio is the relationship of the net income, sales and total assets of the company and measures the
return on equity (ROE). DuPont Return on Assets is an approach that determines the impact of asset
turnover and profit margin on the profitability of the company. Both the collage’s profitability (as
measured in terms of profit margin) and efficiency (as measured in terms of asset turnover) determine
its ROA. Du Pont method breaks out these two components from the return on assets ratio in order to
determine the impact of each on the profitability. This ratio helps in identifying the impact of changes
in the asset turnover and the profit margin.

Formula:

DuPont returns on assets= ((net income / revenues)*(revenues / assets))*100

2018 2017 2016

Net income= Rs. 5,500,024 Net income= Rs. 16,887,057 Net income= Rs. 17,709,165
Revenues= Rs. 99,027,563 Revenues= Rs. 101,125,889 Revenues= Rs. 95,689,741
Assets= Rs. 1,364,341,256 Assets= Rs. 1,316,160,457 Assets= Rs. 1,153,480,100

=((5,500,024 / 99,027,563)*( =((16,887,057 / 101,125,889)*( =(( 17,709,165 / 95,689,741)*(

99,027,563 / 101,125,889 / 95,689,741 /
1,364,341,256))*100 1,316,160,457))*100 1,153,480,100))*100
= 0.40% = 1.28% = 1.53%

Interpretation:

The ratio is the relationship of the net income, sales and total assets of the company and measures the
return on equity (ROE). A for-profit business exists to create wealth for its owner(s). ROE is,

39
therefore, perhaps the most important of the key ratios; since it indicates the rate at which owner
wealth is increasing the ratio provides measures in three of the key areas of analysis, in first portion
the ratio calculate the income earned by the company against sale and in second portion the
calculation of sales to total assets is measured. The multiplication of both the answers provides us the
how much the company is earning in relation to total assets. Ratio is very low that indicates the
utilization of the assets is very poor.

Earning per share:

Earning per share means how much one share will get from the income of the company. Share holders
have prime interest in earning per share.

Formula:

= Net income / outstanding number of shares

2018 2017 2016

Net income= Rs. 5,500,024 Net income= Rs. 16,887,057 Net income= Rs. 17,709,165
Number of shares= 21,275,131 Number of shares= 18,500,114 Number of shares= 16,818,286

= 5,500,024 / 21,275,131 = 16,887,057 / 18,500,114 = 17,709,165 / 16,818,286

= 0.25 per share = 0.9 per share = 1.05per share

Interpretation:

Earning per share is calculated by net income divided by outstanding number of shares. It determines
how much a shareholder will get. Shareholders view earning per share before investing in a company.
Earning per share of the SUPERIOR is very low that is not good for SUPERIOR.

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Dividends per Share:

Formula:

= Dividends / Number of Share

2018 2017 2016

Dividend= 2,661,077 Dividend= 2,079,795 Dividend= 1,595,192
Number of share= 21,275,131 Number of share= 18,500,114 Number of share= 16,818,286

= 2,661,077 / 21,275,131 = 2,079,795 / 18,500,114 = 1,595,192 / 16,818,286

= 0.125 = 0.11 = 0.094

Price / Earning Ratio:

Formula:

= Price per share / Earning per share

2018 2017 2016

Price per share= Price per share= Price per share=
Earning per share= Earning per share= Earning per share=

= 10 / 0.25 = 10 / 0.9 = 10 / 1.05

= 40 = 11.11 = 9.52

Cash Flow Ratios:

Formula:

41
i. Operating Cash flow / Total debt

2018 2017 2016

OCF = Rs. 34,633,472 OCF= Rs. 60,861,739 OCF= Rs. 41,185,585
Total Debt = Rs. 1,208,053,552 Total debt= Rs. 1,159,982,395 Total debt= Rs. 1,017,685,691

= 34,633,472 / 1,208,053,552 = 60,861,739 / 1,159,982,395 =41,185,585 / 1,017,685,691

= 0.02 = 0.05 = 0.04

Interpretation:

This ratio show the actual cash position of the company. Cash flow items deals with actual cash
receipts and payments. This ratio gives real picture of the business. This ratio is in poor condition in
both years.

Operating Cash flow per share:

2018 2017 2016

OCF = Rs. 34,633,472 OCF= Rs. 60,861,739 OCF= Rs. 41,185,585
Number of shares= 2127513 Number of shares= 1850011 Number of shares= 1681828

= 34,633,472 / 2127513 = 60,861,739 / 1850011 = 41,185,585 / 1681828

= 16.27 per share = 32.9 per share = 24.5per share

Interpretation:

It shows how much a share gets from operating cash flow of the company. This ratio is 16.27 in 2018
which is very low from previous years.

Advances to Deposit Ratio:

This ratio is often used by policy makers to determine the lending practices of financial
institutions.

Formula:

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 = Net loans / total Deposits

2018 2017 2016

Loans= 620,216,609 Loans= 661,344,807 Loans= 527,109,209
Deposits= 1,101,845,283 Deposits= 1,038,094,985 Deposits= 927,415,132

= 620,216,609 / 1,101,845,283 = 661,344,807 / 1,038,094,985 = 527,109,209 / 927,415,132

= 0.56 = 0.63 = 0.56

Interpretation:

This ratio tells that how much loan was issued against deposits. In 2016 loan was 0.56 of deposits that
increased in 2017 to 0.63. In 2018 collage stables its percentage and again it came on the level of
2016.

5.17. Spread Ratio:

Farmula:

= interest Earned / interest expense

2018 2017 2016

interest Earned= 100,192,320 interest Earned= 101,125,889 interest Earned= 95,689,741
interest expense= 60,894,358 interest expense= 56,552,485 interest expense= 48,516,517

= 100,192,320 / 60,894,358 = 101,125,889 / 56,552,485 = 95,689,741 / 48,516,517

= 1.64 = 1.78 = 1.97
Interpretation:

This ratio tells that how much collage earns and how much pays against interest. According to this
ratio collage earns more and pay less interest. This ratio is decreasing year by year but still a good
ratio.

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Gross Spread Ratio:

Formula:

= Net markup income / gross income

2018 2017 2016

Net markup income=
19,730,260
Gross income= 38,204,682
= 19,730,260 / 38,204,682
= 0.51
Net markup income= 36,554,308
Gross income=44,573,404
= 36,554,308 / 44,573,404
= 0.82
Net markup income=
37,815,059
Gross income= 47,173,224
= 37,815,059 / 47,173,224
= 0.80

Interpretation:

In this ratio a comparison of mark up income and gross income is evaluated. Collage sector relies on
the mark up income. This ratio shows that net mark up profit earned more in 2017 and decreases in
2018 which is not a good sign.

Times Interest Earned Ratio

Formula:

= Earning before interest and tax / interest expense

2018 2017 2016

Earning before I&T= 7,028,543
interest expense= 60,894,358
= 7,028,543 / 60,894,358
=0.11 times
Interpretation:
Earning before I&T=
24,063,424
interest expense= 56,552,485
= 24,063,424 / 56,552,485
= 0.42 times
Earning before I&T=
26,116,002
interest expense= 48,516,517
= 26,116,002 / 48,516,517
= 0.53 times

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This ratio tells that what is the earning of collage and what are the expenses of collage. This is very
important from the creditor’s point of view. A high ratio ensures a periodical interest income for
lenders. This ratio is decreasing since 2016 that is less than 1. It means the collage is likely to have
problems in paying interest on its borrowings.

Current Condition:
According to the ratio analysis I concluded:

 Collage’s overall condition is satisfactory.

 Debt ratio is very high, high leverage, high risk.
 SUPERIOR is very strong financially.
 This is only collage that have deposits in trillion.

Future prospect of Superior College:

SUPERIOR is the biggest collage of Asia with more than 200 branches. It is the only collage owned
by the Group of collages of Pakistan and it also acts as an agent of the state collage of Pakistan.
Future of the SUPERIOR is very glowing. SUPERIOR has no competitors because of its strong financials.
It has huge amount of profits. No other collage can even think to compete. SUPERIOR has poor
infrastructure but now it is changing the way. It can touch the heights by adopting the computerized
system. Management of the SUPERIOR is also very efficient to meet the requirements. Customers
have trust on it. SUPERIOR also deals with Group of collages employees and provides benefits to them.
Financial position of SUPERIOR is based on sound footings. Assets and profits of SUPERIOR are in a
position that no other collage will even think to earn. Financial position in 2018 is remarkable and it is
expected to be better in future. SUPERIOR plans to continue its strong focus on recovery and reduction
in non-performing loans, deposit mobilization, expense management and consolidation of loans.
SUPERIOR is taking IT initiatives to upgrade and implement new application solutions to meet the
challenges of the growing competition. It will improve the operational efficiency and control,
customer services. It is expected that SUPERIOR will lead the collage sector of Asia in future.

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Conclusion
SUPERIOR COLLEGE promotes as it is unique College of its nature for education in
Pakistan. The campus feels its commitment to produce graduates of scholarly aptitude to
solve today’s educational problems with the help of training they receive at the campus.

In crux we can conclude that Superior College is a competitive institution. It has many
campuses throughout the Punjab and serving the programs offered are also unique. Some
programs and departments are in initial stages so they need some extra intentions.
The organizational structure is controlled and centralized. The flow of information is from
upper to the lower management. SWOT analysis shows that College is having a good
potential to match tis strengths to capture opportunities and minimize the threats. Overall
SUPERIOR COLLEGE can be the trend setter in this region and can dominate the market
due to its ever increasing popularity in many new programs and positive strengths.

The experience of doing internship here also reveals positive interaction between its
management. They are hardworking cooperative and competitive towards everyday
challenges and trends of new methods and techniques. But the university has to develop its
infrastructure in more efficient and competing way. Overall here is a good experience to
gather information and conclude its features, environment and functioning.

References & Sources

I took help from following sources:

 Website of SUPERIOR: www.Superior.com.pk

 Branch officers
i. Branch manager
ii. Operations manager
iii. Other staff

46
Annexes
All the material used in the report is obtained from website of SUPERIOR. All financial statements are
downloaded from annual report of SUPERIOR www.Superior.com.pk. Financial reports has been
presented in Annual reports. I took financial statements of 2016, 2017 and 2018 from their respective
annual reports.

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