University of Education

Lower Mall Campus, Lahore

Department of Economics and Business Administration

Internship Report
Service Sales Corporation
A REPORT IS SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND
BUSINESS ADMINISTRATION, UNIVERSITY OF EDUCATION, LOWER MALL
CAMPUS, LAHORE IN THE PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (HONS)

SUBMITTED BY:
BBA-F15-39
HAMZA KHALID
2015-2019
SUBMISSION DATE
September 11, 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 HAMZA KHALID s/o. MUHAMMAD KHALID Roll
No. BBA-F15-39 for the partial fulfillment of the requirements for the degree of

BBA (HONS.)
Session (2015-2019)
With specialization in
FINANCE
and is hereby accepted by the evaluation committee.

Internship Supervisor _________________

Principal _________________

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 Dedication:

I want to dedicate my work to my parent, teachers and friends who always helped me in my life
to achieve my goals and try to make my future bright.

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 Acknowledgement:

First of all, I would like to thank to my ALLAH ALMIGHTY who give me the energy, motivation
and the wisdom to accomplish this report. Not forgotten to my family for providing me everything
that were necessary to complete this report.
Special thanks to my instructor. My report will remain incomplete if I do not mention the effort of
those people who helped me in completing this work. First of all I would like to thank to all
coordinator, management and professors of my University who gave me opportunity to do
internship

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 Executive Summary

Service Sale Corporation (PVT) LTD, (SSC) being Pakistan’s leading retailer SINCE 1954, has
always been at the forefront of taking new initiatives to provide best experience to our customers
across Pakistan, our operatives business is divided into the segments of wholesale and retail. SSC
is a leading player with more than 500 retail stores and exceeding 1500 independent retail in its
wholesale network across Pakistan. It operates with the sale lives Servis, shoe planet & Calza.
We are a team that takes immense pride in our rich heritage. We work day in and day out to keep
our legacy alive.
The report consist of History of Service Sale Corporation (PVT) LTD, (SSC) its Board of
Directors and review of committee. Furthermore the reader will be able to understand about the
(SSC) mission and vision too. Report is giving a whole picture of Service Sale Corporation
(PVT) LTD, (SSC) business volume, its product lines, major clients and what are the whole
competitors. I have mentioned all department information of (SSC) and explained every
department functions. So, the reader may aware about the Service Sale Corporation (PVT) LTD,
(SSC) department hierarchy or activities.
In this report I have mentioned the other department of Service Sale Corporation (PVT) LTD,
(SSC) which exist there and also mentioned the role of each department.

There are the following departments of Service Sale Corporation (PVT) LTD, (SSC).
 Information Technology:
 Marketing Department:
 Sale Department:
 Audit Department:
 Finance Department:
 Account Departments:
 Budgeting Department:

In this report I also do the SWOT analysis so that the reader may aware or may understand the
Service Sale Corporation (PVT) LTD, (SSC) Strength, Weaknesses, Opportunity and Threat
this will show the reader what are the strength or where the company will get advantages on their
products over their competitors. What are the weakness in their product or in their management
what are the opportunity for the Service Sale Corporation (PVT) LTD, (SSC) where he may
increase his profit and what are the threats from their competitors.

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Last but not the least ratio analysis of Service Sale Corporation (PVT) LTD, (SSC) the ratio
analysis show or it may helpful to the stockholder and stakeholder that what is the financial
position of the company. Whether is beneficiary to invest in this organization or not and also show
the different function of the company?
At the end of the conclusion and the recommendations are the part of the report. Bibliography is
the part, which contain all the reference from I obtain data to prepare this report.

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 Table of contents:
Brief introduction to the industry ------------------------------------------ 09
Overview of the Organization
a. Introduction to the Organization --------------------------------------- 10
b. Mission --------------------------------------------------------------------11
c. Vision ----------------------------------------------------------------------11
d. Slogan ---------------------------------------------------------------------11
e. Corporate objectives -----------------------------------------------------12
f. Market Standing ----------------------------------------------------------12
g. Business volume ----------------------------------------------------------12
h. Policy of the Organization -----------------------------------------------12
i. Competitors ----------------------------------------------------------------12
j. Product lines ---------------------------------------------------------------13

Organizational Structure
a. Organization Hierarchy Chart -------------------------------------------14
b. Main Office ----------------------------------------------------------------15
c. Brief Introduction of all Departments ----------------------------------15
Comments on the SSC’s Organizational Structure -----------------------17
Plan of my Internship
a. Introduction of the Branch ------------------------------------------------18
Training departments
a. Activities performed by the Departments -------------------------------19
b. Task Assigned To Me ------------------------------------------------------19
Structure of Finance Department ----------------------------------------------21
Marketing Functions --------------------------------------------------------------22
Human Resource Management -------------------------------------------------24
Financial analysis
Horizontal analysis ----------------------------------------------------------------- 28
Vertical analysis -------------------------------------------------------------------- 32

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Ratio Analysis -------------------------------------------------------------------- 36
Competitive Analysis ----------------------------------------------------------- 40
Future Prospects ---------------------------------------------------------------- 44
SWOT Analysis ------------------------------------------------------------------ 45
Conclusion ------------------------------------------------------------------------ 46
Recommendation --------------------------------------------------------------- 47
References ----------------------------------------------------------------------- 48

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 Brief introduction to the industry:

Pakistan is a fascinating land, rich in natural resources with a strong agricultural base. Its farmlands
are excellent grazing grounds for the high quality livestock it breeds. Pakistan Tanning Industry is
well established and produces high quality finished leather from hides as well as skins. Pakistan
has inherited centuries old craftsmanship of shoe making and its popular brands like Khussas, a
hand crafted footwear with thick leather used in uppers and soles and special stitching process, is
still exported in huge quantities. The time-honored efficient skills have been blended with most
modern technology to produce highly attractive styles, designs and shapes that are comfortable
and durable and have great universal appeal.
Pakistan produces a wide range of footwear to cater for the needs of a variety of customers – -men
and women, boys and girls, pedestrians and joggers, business executives and bureaucrats, office
goers and hawkers, squash and hockey players, cricketers and footballers, mountaineers and
foresters, policemen and soldiers, specially designed footwear for the disabled, in fact, all those
who need footwear according to their choice and special requirements. The large variety of
Pakistan made footwear is really impressive. The population of Pakistan is about 200 million and
taking average of 2 pairs per person per year, the total production comes to 400 million pairs per
year.
The Cottage Industry supplies bulk of the domestic needs according to the changing designs and
tastes round the year, whereas, export needs are fulfilled by the organized / mechanized sector.
Many factories have a production capacity of 2,500 pairs per day, while the larger units produce
as much as 10,000 pairs per day. It includes leather, textile and synthetic shoes.
Bulk of the exports, about 80% are of leather shoes in the medium price range of 9-12 US Dollars
and are very competitive in the international market. The total exports of such shoes during year
2012-13 were 105 Million US Dollars and during year 2014 – 15 it remained 131.2 Million US
Dollars..
Pakistan exports footwear to more than 60 countries in five continents of the world. Its major
exports are to UK, France, Netherlands & Germany in Europe and Dubai, Saudi Arabia & Yemen
in the Middle East. Pakistan’s exports of footwear have registered a high rate of growth in the
recent past. It has gone up by 250% of what it was few years ago
Government policies are business friendly encouraging both production and exports. Temporary
imports for re-export purposes are allowed while machinery and many raw materials can be
imported at nominal import duties. Trade Development Authority, Government of Pakistan

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facilitates our participation in international footwear exhibitions in different countries, helping in
promotion of our exports.

Overview of the Organization:

1959: Service Sale Corporation (PVT) LTD, (SSC) was formed, with first outlet opening on
Mall Road, Lahore
1971: Reached a milestone of 100 stores.
1983: Cheetah – the first sport shoe brand was formed.
1988: Don Carlos – a premium men’s formal foot-wear brand was launched.
1993: Liza - the first brand for women’s was launched.
2003: Service Mega Store – a major multi brand format in partnership with leading international
brand was started.
2008: service Franchise program was start.
2009: Service retail network crossed the 400 stores mark.
2011: SSC become an independent group after restructuring of the service group.
2012: SSC wins the Shaukat Khanam Memorial Cancer Hospital and Research Center Social
Responsibility Award
Shoe Planet – the first multi-brand shoe store was opened.
2013: SSC won the “Campaign of the Year” award at the PAS Awards for its “Shoe for Everyone”
Campaign.
SSC takes the lead by being the first company to automate its entire operations with Oracle Retail
solutions.
2016: CALZA – dedicated brand for men shoes was launched.

MISSION:
FORWARD TOGATHER.

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VISION:
To remain a sustained market leader setting higher standards in industry practice and a meaningful
impact on the lives of our customers, employees, community & shareholders through innovation
and capability.

Slogan:
Servis Shoes for Everyone.

Introduction to the Organization:

Service Sale Corporation (PVT) LTD, (SSC) being Pakistan’s leading retailer SINCE 1954, has
always been at the forefront of taking new initiatives to provide best experience to our customers
across Pakistan, our operatives business is divided into the segments of wholesale and retail. SSC
is a leading player with more than 500 retail stores and exceeding 1500 independent retail in its
wholesale network across Pakistan. It operates with the sale lives Servis, shoe planet & Calza.
We are a team that takes immense pride in our rich heritage. We work day in and day out to keep
our legacy alive.
Service is SSC's main pillar brand in footwear. SSC has nurtured this brand through successive
generations of management and has positioned it as one of the most recognized brands of Pakistan.
Shoe Planet is a unique shoe shopping destination store, offering product quality and design at par
with the top international brands in an engaging shopping environment.
The concept for introducing an organized family shoe brand, for mid to lower consumer income
group was conceived in 2015. Therefore a separate strategic business unit was formed under the
name of CALZA in 2016.
Service Sale Corporation (PVT) LTD, (SSC) the main head office of the SSC is located at the
2nd Floor, EFU House, 6-D, Main Gulberg, Jail Road, Lahore, Lahore-54662, and Lahore,
Pakistan.
Service Sale Corporation (PVT) LTD, (SSC) in this company there are three sub company or
there are three more companies are working under the SSC their name are Service Industries
Limited, Service Shoe Manufacturing and Service Sale Corporation. There the Three Business
lines of the Service Sale Corporation (PVT) LTD, (SSC) as mentioned above is Retail,
Wholesale and E-commerce but there were two other business line which are closed now were
Export and Corporate sale. The E-Commerce business is slow now a day therefore we can say that
there are only two major business line of Service Sale Corporation (PVT) LTD, (SSC) that is

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retailing and Wholesaling. In Retailing there are approximately 500 Retail Stores. That are spread
all across the nation and serve as a visual delight for consumers. In Wholesale there are
approximately 13 Wholesale Business Center (WBC).

Corporate objectives:
 Responsibility.
 Customer Centricity.
 Innovation.
 Drive for result.
 Capacity Building
 Commitment.

Market Standing:
In current situation Service Sales Corporation become an established brand and a well-known
supplier of quality products for customer. He come at the top of the shoes manufacturing industry
in Pakistan. As compare to its competitors SSC stand on top in current market situation.

Policy of the Organization:

SSC strongly believes in doing quality business. Dealers are selected through a certain criteria.
Once selected, they are authorized to work in the respective area (cities) and are allocated a
Business Center to fulfill their demand.

Competitors:
There are the following competitors of Service Sale Corporation (PVT) LTD, (SSC)
 Bata
 Aerosoft
 Stylo
 Urbansole

Business volume:
 500 RETAIL STORES that are spread all across the nation
 13 Wholesale Business center
 1000 Registered Dealers
 5000+ Stockists

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Product lines:
 SERVIS.
 SHOE PLANET
 CALZA
 LIZA
 CHEETAH
 DON CARLOS
 SKOOZ
 TOZ

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 Organizational Structure:

Organization Hierarchy Chart:

CEO

CFO CSO

TREASURY FINANCIAL STRATEGIC

MANAGER CONTROLER MANAGER

CASH
MANAGEMENT BANKING ACCOUNT BUDGETING MARKETING
HR MANAGER
RELATIONSHIP MANAGER MANAGER MANAGER

ACCOUNT BUDGETING
EXECUTIVE EXECUTIVE

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Number of employees:
There are the total number of employees who are working Service Sale Corporation (PVT) LTD,
(SSC) are approximately 4900.

Main Office:
Main Gulber, Jail Road, Lahore.

Brief Introduction of all Departments:

There are the following Departments which are working under SSC:
 Information Technology:
 Marketing Department:
 Sale Department:
 Audit Department:
 Finance Department:
 Account Departments:
 Budgeting Department:

Human Resource Department:

Department Human resource department of the SSC Company is very much conscious about
hiring the employees for the company. The standards he set for hiring the new people. HRM
department of the company mainly makes the external recruitment. This is usually done through
web sites. Their channel of hiring are LinkedIn and their own channel SSC career portal. For the
fresher SSC follow merit system take properly tests and interviews and for experience holder they
took directly interview. The HR department of SSC is responsible for providing on-the-job as well
as refresher training for all employees. Compliance with labor, tax and employment laws is a vital
part of safeguarding the organization’s continued existence.

Information Technology:
Department IT department are fully responsible for providing service of internet in Organization.
IT department perform the functions of web links for advertisement of SSC products and maintain
the Web-side of SSC. IT teams of SSC develop tools to collect, store, manage, secure and distribute
data to employees who need access to the latest information to make decisions about strategic,
financial and operational issues Admin Department Administration department is backbone of an
organization. An effective administrator is an asset to an organization. This department’s function
is to handle organization, master planning, financial review, land acquisition, site accessibility/use,
easement standards and outreach and other public concerns.

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Marketing Department:
Marketing department generally analyze the needs and wants of the customer. Then this
department tells about the customer needs to the company which in turn launches the products
according to the needs of the customers. Marketing department is responsible for making strong
advertisement for the products. SSC marketing department are fully responsible for the promoting
of new and existing products using different tools of marketing. They identify the target customers
and audience. First the select the market and visit the market then setting up the market strategies.
After all that they communicate and sell product to customer through event, exhibitions, seminars,
direct sale, viral marketing, direct marketing and advertising. They also work with the product
development team.

Sale Department:
Sale department holds the sale of the company. They handle the overall offices of Pakistan. Sale
department deal with 32 offices. Their only responsibility to sell the products to their suppliers.

Audit Department:
Audit department that every transaction check like disposal of fixed assets to be approved by top
management and acquiring new assets with approve of tope management. This department also
see financial control on assets & accounts and to avoid errors fraud and theft and sure that financial
statement prepare according to International Accounting Standard.

Finance Department:
This department is manage the money of the organization. Finance department of the SSC mange
the money, make the statement, mange loan, identifies the new investments, mange the taxation
and financial planning. In this department have further categories.

Account Departments:
Following Functions perform by accounts department of SSC. First they keep the record of
expenses and investments and keeping the bills paid. Second they manage the payment or salary
of the employees and make sure everyone gets paid including the government and report to their
senior.

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Budgeting Department:
This department of the SSC forecast the future transactions. This entails making at calculated
attempt into knowing what the future holds. Forecasting may not be perfect as evidence has shown
but it is better to have a forecast to work with than not having any as this will help you get prepared.
There are many statistical tools developed over the years to help managers and accountants make
better forecast. And they make plane on the biases of forecast.

Account Receivable:
SSC’s account receivable department mange the account receivables

Retail Department:
The function of retail department is to overlook the retail stores or shops of the servis. There are
500 retail stores all over the Pakistan they manage all these stores and make strategies about what
should be the retail price. They make the records that how much stock should be available in these
retail stores, they also check the demand in different stores and provide material according to the
demand of the product.

Wholesale Department:
There are almost 13 or 13+ WBC (wholesale Business Center) and more than 1,000 dealers in
Pakistan the purpose or the function of this department to manage all these WBCs and if there and
also to manage these dealer. They make the records that how much stock is available in WBCs
and how much stock is delivered to the wholesale dealers.

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Comments on the SSC’s Organizational Structure:

SSC divide department according to their job specifics. Its mean their organizational structures
style is functional every department perform their task according to their work specifics. Every
member cannot access data from the other department. There are many benefit of that SSC of
structure like employees are grouped their knowledge and skills which help to achieve the highest
degree of performance. Their role and responsibilities are fixed.
The hierarchy is apparent and employees don’t have to report to multiple supervisors. Each
employee reports to his or her functional manager, which reduces the number of communication
channels. This hierarchy have some disadvantage like Employees may feel bored due to the
monotonous, repetitive type of work and may lose enthusiasm for the job. The departments have
a self-centered mentality.
The functional manager pays more attention to his department; he usually doesn’t care about other
departments. Communication is weak among the departments, which causes poor
interdepartmental coordination. This decreases flexibility and innovation. Moreover, there is a lack
of teamwork among different departments. SSC’s decision making style is centralize mean mostly
decision made by top management.

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 Plan of my Internship:

Introduction of the Branch:

I did my internship in Service Sale Corporation (PVT) LTD, (SSC) in the head office. Located
at Main Gulberg, Jail Road. The CEO and director of SSC are Mr. Shahid Hussain. And Mr.
Ahmed Hussain, He is the CEO and CSO (Chief Strategic Officer). All the function controlled by
these person. And the Mr. Tabish are the CFO (Chief Financial Officer) of SSC all financial
functions are controlled by this person. Muhammad Dawood Sajid are the (HR lead). And Mr.
Rashid Qamar are the (Administration Manager). And there under HOD control further functions
and report to the lead or manager HOD also called the Supervisor of SSC.

Starting and ending date of internship:

I started internship on July 12, 2019 to August 23, 2019.

Name of training departments and duration:

The duration of internship program was six weeks. The staff of the SSC was very cooperative. I
got training under Fixed Asset Management and Accounts Payables.

From 12th July to 9th August 2019:

I worked under Fixed Asset Management. I learnt that how to do Asset Tagging, Reconciliation,
Physical Verification, How to work on ERP and last but not the least Asset recording.

From 8th July to 23rd August 2019:

I worked under the Accounts Payable Department. Here I learnt how to record the AP in Oracle.

Training program;
I started my internship on 12th of July at the Services Sales Corporation (PVT) LTD, (SSC).
On the very first day Mr. Asif Zaidi who were the Fixed Asset Executive they tell me about the
organization and tell the Hierarchy of the SSC. He also tell his Job Descriptions that what are they
doing here, what are the functions performed by him. What are the nature of business of SSC?

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Activities performed by the Departments:
There are the list of activities which were performed by the departments where is worked.
Fixed Asset Management:
 The function of this department is to manage the fixed asset of the company.
 Reconciliation: They Reconcile the EBS computer card to the Asset card of the shops if
there any error then it’s the responsibility of the Fixed Asset Executive to resolve the Error.
 Asset Tagging: this function were performed by this department first they have to identify
whose thing is asset if set their SOP that if the thing value is more than 10,000 they called
this asset and tag this if there is any tag is missing in their stock they have to issue a new
Asset Tag for that.
 Physical Verification: At the end of the each year they do physical verification to know
about the asset which they recorded are actually available to the company or not.
Accounts Payable:
 Generate AP: The role of this department is to Accounts Payable means that if they
purchase something on credit they first put the entry in Oracle to generate this so that the
treasury department can pay this amount if they do not generate this then the treasury
department can’t identify to whom to made payment.

Task Assigned To Me:

There are the following task which were assigned me are the following:
 Work on ERP.
 Reconciliation.
 Asset Tagging.
 Physical Verification.
 Reconciliation:
In this I do reconcile the asset card of the company. First we called the shop manager of the Service
or Ndure to send their asset card and then we tally this with our EBS card if there any difference
between this then I have the duty to reconcile this. Let’s suppose if there any difference between
this then first I called to the shop manager to confirm that we issued these asset to you but in your
shop it’s not available where are these asset then they said that these asset is transfer to any other
place then I removed that asset from that shop asset card and resolve that issue.

 Asset Tagging:

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I also made the asset tag for the company if there are the asset on which tag is missing then I make
the asset tag and issue this for that asset.

 Physical Verification:
I do physical verification in head office of the SSC to look that is there is any asset in which tag is
missing, if there is missing tag then I record this with the detailed description.

 Work on Oracle:
I also work on the oracle software which they used is daily routine:

Accounts Payable:
The task which assigned me from Accounts Payable department:

 Data Entry:
I also see how to record the data of Account Payable in Oracle and when is see this and get some
knowledge then I tried this and I record the data in Oracle.

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 Structure of Finance Department:

Chief Financial Officer

FINANCE
MANAGER

ACCOUNTS
BUDGETING
MANAGER
MANAGER

ASSISTAN
ASSISTANT
ACCOUNTS
BUDGETING
MANAGER
MANAGER

EXECUTIVE EXECUTIVE
MANAGER MANAGER

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 No of employees working under Finance Department:
Approximately 20 or more employees are working under finance department:

Sub-Department of Finance

FINANCE
DEPARTMENT

ACCOUNTS ACCOUNTS
ACCOUNTS BUDGETING PAYABLES RECEIVABLE

Marketing Functions:

PRODUCT PRICE
 CHEETAH  PRODUCT AND
 CALZA DEMAND
 LIZA  BRAND
 TOZ MARKETING
MIX

PROMOTION
PLACE
 INTERNET
 EXTENSIVE  TELEVISION
 NEWSPAPER

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PRODUCTS:
There are the following product line of SSC:
Don Carlos: For Businessmen.
CHEETAH: For Sportsperson.
CALZA: Made for Men.
LIZA: For all types of Women.
SKOOZ: For school going children.
TOZ: For children who love to be stylish.

Price:
Service Sales focus on all type of its customers local and international. The price of its product is
start from the economical price of RS 800 minimum for low or middle class families, who cannot
afford imported brands and costly shoes and the price goes higher to thousands for high class and
rich family.
However, the price of Service Shoes depends on so many factors:
 Production & demand
 Brand

Place:
The product of SSC is available on every outlet and they spread their outlet around the country
and target each and every market. Its distribution strategy is extensive that every customer can
easily found our products.

Promotion:
Promotion is the set of marketing elements; selling, advertising, sale promotion, sale discount and
publicity. He also use different promotion strategy on different occasion and give promotion
schemes timely the recent commercial of servis shoes is “Eid for Everyone” the most famous and
successful advertising activity.

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SSC use different strategy to promote its products these are the following strategy:

 Internet
 Television
 Sale discount

Human Resource Management:

 Employees Recruitment and Selection:

The company aims to recruit and select staffs which are needed to achieve its strategic directions
and who show attributes that are consistent with the organization’s directions and culture. The
purpose of recruitment and selection is the cost efficiency to make the performance of company
more effective. As under the employment legislation every person should have the equal
opportunity for job. So SSC Company also hiring the best staff according to employment
legislation and to make operational process more effective and efficient by lowering the cost
included direct and indirect cost both. SSC recruit electronically through the Internet. They give
ad on their website
https://SSC.com.pk (Career Portal)
https://www.linkedin.com
According to Human resource practices these procedures are not very simple for filling of any
vacancy. Once the organization’s human resource needs have been determine, they necessarily
have to be filled. These staffing activities include the following:
 Recruiting job candidate
 Selecting the most appropriate job applicants for the available job

Recruitment Process:
SSC Company follows the whole procedures for which are acceptable at national and international
level both. Mean they follow the standard operating procedure for recruitment and selection.
There are the following steps which SSC HR Department use to select the resource:
 Receive Applications or CV both in Hard and Soft, you can apply by its career portal or by
SSC linkedin Page
 Select the most appropriate candidate through their CV
 Test system

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  Interview
 Medical test
 Back ground Reference:

Training of employees:
Training in SSC. Is basically of two types:
 Training to new employees.
 Training to existing employees.

Performance Management:
In SSC performance appraisal is recognized as an important element of the jobs of managers and
supervisor. It provides significant help in meeting departmental and company objective. Given the
vital role of performance appraisals, SSC needs to check appraisal system, and the uses of such
appraisal system to determine whether key personnel decisions are affected by employee’s age,
race, sex, religion, color, national origin or handicap.

Compensation Policy:
Salary progress during an employee career with SSC is a function of performance over time. Better
performance is important higher pay. Performance is also key factor in consideration for
promotion.

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 Financial analysis:
Horizontal Analysis Balance Sheet

2018 2017 2017vs 2018

RS. In RS. In Percentage
million million
Equity and _______ ________
liabilities
Share capital _______ ________
and reserves
Issued, 5426 5426 _
subscribed and
paid-up capital
Capital reserve 4280 4280 _
Accumulated 13,020 11,134 16.94
profit
Total equity 22,727 20840 0.091
Advance
against issue of
ordinary shares
Surplus on 4,274 4,671 (8.49)
revaluation of
property, plant
and equipment
Liabilities
Non-current
liabilities
Redeemable 69 3,152 (97.82)
capital
Long term 3,958 1,406 183.07
finances
Liabilities 22 46 (51.69)
against assets
Deferred 2,413 2,326 3.75
taxation

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 Deferred 39 41 (5)
income
Total 6,501 6,971 (6.42)
Current
liabilities
Trade and 993 915 8.49
other payables
Accrued 166 159 3.86
interest
Short term 7,227 4,982 45.08
borrowings
Current 2,027 1,788 12.18
portion of non-
current
liabilities
Total 10,413 7,845 32.47
Total liabilities 16,915 14,816 14.17
Total equity 43,916 40,327 8.90
and liabilities

Assets

Non-current
assets
Property, plant 17,406 16,442 5.86
and equipment
Intangible 316 324 (2.51)
assets
Long term 9 26 (66.41)
investments
Long term 37 39.64 266
deposits
Long term 797 1,009 (21.01)
advances
Total 18899 18068 4.60

Current assets

Stores, spares 746 813 (8.18)

and loose tools

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 Stock in trade 8150 7846 3.88

Trade debts 10728 8433 27.20

Due against 1393 1128 23.51

construction
work In
Progress
Short term 846 955 (11.42)
advances
Short term 1109 1259 (11.89)
deposits and
payments
Other 311 480 (35.22)
receivables
Short term 22 23 (5.55)
investments
Advance 1228 770 59.49
income tax
Cash and bank 484 552 (12.32)
balances
25017 22259 12.39

Total assets 43916 40327 12.39

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 Horizontal Analysis Profit and Loss Statement
2018 2017 2017 vs
2016
Revenue 42347 34124 16.37
Sales tax and (11347) (7290) 73.52
discount
Revenue net 31000 26834 6.81
Cost of sales (21884) (18550) 4.88
Gross profit 9116 8284 11.43
Other income 18 37 4.02
Distribution cost (2684) (1628) 22.29
Administrative (1119) (884) 16.56
and general
expenses
Other expenses (176) (194) 3.27
(3979) (2706) 18.82
Operating profit 5155 5616 8.14
Finance cost (1547) (1497) (10.14)
3609 4119 16.77
Share of loss of (5) 0 (102.29)
associate
Profit before 3603 4119 17.22
taxation
Taxation (295) (34.32) (29.12)
Profit after 3308 3670 27.43
taxation
Other __ __ __
comprehensive
income

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 Total 3308 3670 27.43
comprehensive
income

Vertical Analysis Balance Sheet

2018 2018 2017 2017
RS. In million percentage RS. In million Percentage
Equity and
liabilities
Share capital
and reserves
Issued, 5426 12.36 5426 13.46
subscribed and
paid-up capital
Capital reserve 4280 9.75 4280 10.61
Accumulated 13,020 29.65 11,134 27.61
profit
Total equity 22,727 51.75 20840 51.68
Advance against
issue of ordinary
shares
Surplus on 4,274 9.73 4,671 11.58
revaluation of
property, plant
and equipment
liabilities
Non-current
liabilities
Redeemable 69 0.16 3,152 7.82
capital
Long term 3,958 9.06 1,406 3.49
finances
Liabilities 22 0.05 46 0.12
against assets

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 Deferred 2,413 5.50 2,326 5.77
taxation
Deferred income 39 0.09 41 0.10
Total 6,501 6,971 (6.42)
Current
liabilities
Trade and other 993 2.26 915 2.27
payables
Accrued interest 166 0.38 159 0.40
Short term 7,227 16.46 4,982 12.35
borrowings
Current portion 2,027 4.57 1,788 4.43
of non-current
liabilities
Total 10,413 23.66 7,845 19.45
Total liabilities 16,915 38.52 14,816 36.74
Total equity and 43,916 100. 40,327 100.
liabilities

Assets 2018 2018 2017 2017

Rs, million Percentage Rs, million Percentage
Non-current
assets
Property, plant 17,406 39.63 16,442 40.77
and equipment
Intangible assets 316 0.72 324 0.80

Long term 9 0.02 26 0.07

investments
Long term 372 0.85 39.64 0.66
deposits
Long term 797 1.81 1,009 2.50
advances
Total 18899 43.03 18068 44.80

Current assets

Stores, spares 746 1.70 813 2.02

and loose tools
Stock in trade 8150 18.56 7846 19.46

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 Trade debts 10728 24.43 8433 20.91

Due against 1393 3.17 1128 2.80

construction
work in Progress
Short term 846 1.93 955 2.37
advances
Short term 1109 2.53 1259 3.12
deposits and
payments
Other receivables 311 0.71 480 1.19

Short term 22 0.05 23 0.06

investments
Advance income 1228 2.80 770 1.91
tax
Cash and bank 484 1.10 552 1.37
balances
25017 56.97 22259 55.20

Total assets 43916 100. 40327 100.

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 Vertical Analysis Profit and Loss Statement
2018 2018 2017 2017
RS. Million Percentage RS. Million Percentage
Revenue 42347 100. 34124 100.
Sales tax and (11347) (26.79) (7290) (21.36)
discount
Revenue net 31000 72.21 26834 78.64
Cost of sales (21884) (51.68) (18550) (54.36)
Gross profit 9116 21.53 8284 24.28
Other income 18 0.04 37 0.11
Distribution cost (2684) (6.34) (1628) (4.77)
Administrative (1119) (2.64) (884) (2.59)
and general
expenses
Other expenses (176) (0.42) (194) (0.57)
(3979) (9.40) (2706) (7.93)
Operating profit 5155 12.17 5616 16.46
Finance cost (1547) (3.65) (1497) (4.39)
3609 8.52 4119 12.07
Share of loss of (5) (0.01) 0 0.00
associate
Profit before 3603 8.51 4119 12.07
taxation
Taxation (295) (0.70) (34.32) (1.32)
Profit after 3308 7.81 3670 10.75
taxation
Other __ __ __ __
comprehensive
income
Total 3308 7.81 3670 10.75
comprehensive
income

Page | 35
 Ratio analysis
Liquidity Ratio:
This ratio shows the firm’s ability to meet its short term obligations.

Current ratio:
Its show the firm’s ability to meet its current liabilities with its current asset.
Formula: current assets/ current liabilities
Year 2018 2017
Current Ratio: 1.12 1.09

Interpretation:
The more the ratio is better for the company.

Quick ratio:
It shows a firm’s ability to meet current liabilities with its most liquid assets.
Year 2018 2017
Quick Ratio: 0.64 0.70

Formula:
Current asset-inventory/current liabilities

Interpretation:
The more the ratio is better for the company.

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Financial Leverage ratio:
The ratio that show the extent to which the firm is financed by debts.

Debt-to-Equity-Ratio:
To assess the extent to which the firm is using borrowed money.
Year 2018 2017
Debt Ratio 3.36 2.89

Formula:
Total Debt/Shareholder’s Equity

Interpretation:
This ratio tell the percentage of the total amount which we are borrowing from our creditor. This
year SSC Debt-to-Equity-Ratio is increase. The less the ratio is best for the company.

Debt-to-Total-Asset:
This ratio tell us the percentage of our assets how much our assets which is held by the company
is finance by the creditor or creditor’s Money.
Year 2018 2017
Debt-to-Total-Asset 0.70 0.65

Formula:
Total Debts/Total Assets

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Interpretation:
This year Debt-to-Total-Asset percentage is increase.

Total Asser Turnover:

This ratio tell us the relative efficiency with which a firm utilizes it total assets to generate sales.
Year 2018 2017
Total Asset Turnover 1.31 1.46

Formula:
Net Sales/ Total Assets

Interpretation:
This year Total Asset Turnover ratio is decrease. Its mean that SSC in 2018 generate less sales
revenue by using its asset.

Profit ability Ratio:

This ratio show the relationship of profit with the sales.

Gross profit Margin:

This ratio tell the margin percentage of the company and tell us the profit of the firm relative to
sale.
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 Year 2018 2017
Gross Profit Margin. 16.9% 19.8%

Formula:
Net sales-Cost of Goods Sold/Net Sales

Interpretation:
This year the gross profit percentage is decrease.

Profitability in Relation to Investment:

It tells the investor that how much the return of this company is giving against our investments.

Year 2018 2017

Ratio 4.14% 4.93%

Formula:
Net Profit after tax/Total Asset

Interpretation:
This year the net income per dollar of sale is decrease.

Return on Equity:
This ratio tell us the earning power of specific amount of percentage on shareholder’s book value
investment.
Year 2018 2017
Ratio 18.3% 28.3%

Formula:
Net Profit after tax/Shareholder’s Equity

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Interpretation:
This year in 2018 Return on Equity is decrease.

Competitive Analysis:

Liquidity Ratio:
This ratio shows the firm’s ability to meet its short term obligations.

Current Ratio:
Its show the firm’s ability to meet its current liabilities with its current asset.

Service Sales Corporation Bata

2018 1.12 1.14
2017 1.09 0.94

Interpretation:
This ratio show ability of the firm to pay its current liabilities with its current assets.
In this in 2018 Bata have more ratio than SSC, In 2017 SSC have more ratio or more ability than
Bata.

Quick Ratio:
It shows a firm’s ability to meet current liabilities with its most liquid assets.

Service Sales Corporation Bata

2018 0.64 0.86
2017 0.70 0.73

Interpretation:

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In Quick or Acid test ratio we deduct inventor form current asset because inventory took time to
convert into cash. In this scenario Bata have advantage or more ratio than SSC.

Financial Leverage ratio:

The ratio that show the extent to which the firm is financed by debts.

Debt-to-Equity-Ratio:
To assess the extent to which the firm is using borrowed money.

SSC Bata
2018 3.36 2.23
2017 2.89 2.48

Interpretation:
In this ratio Bata have more efficient than SSC. The less the ratio is better for the company.

Debt-to-Total-Asset:
This ratio tell us the percentage of our assets how much our assets which is held by the company
is finance by the creditor or creditor’s Money.

SSC Bata
2018 0.70 0.6913
2017 0.65 0.7133

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Interpretation:
This ratio show how much firm’s asset is financed by debts. The less ratio is best for the company.
The higher the ratio shows the more risk. In this case in 2017 SSC has priority over Bata but in
2018 there is a little bit difference but Bata has Priority over SSC.

Total Asser Turnover:

This ratio tell us the relative efficiency with which a firm utilizes it total assets to generate sales.

SSC Bata
2018 1.31 0.77
2017 1.46 0.66

Interpretation:
In this case SSC has more priority over Bata this ratio shows that if you invest 1 dollar of asset
then company will get or generate 1.31 revenue.

Profitability in Relation to Investment:

It tells the investor that how much the return of this company is giving against our investments.

SSC Bata
2018 4.14% 5.9%
2017 4.93% 5.40%

Interpretation:
In this case Bata have more ROI percentage than SSC.

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Return on Equity:
This ratio tell us the earning power of specific amount of percentage on shareholder’s book value
investment.

SSC Bata
2018 18.3% 20.55%
2017 28.3% 25.6%

Interpretation:
In this case SSC have more Return on Equity than Bata.

Page | 43
 Future prospectus:

SSC is a well-known company and its all previous brands are established in the
market. But they try to launch new brands in future for the purpose of increase their
market share as well as revenue. So, for this purpose they launched a new brand
“NDURE” that become the most selling brand in all over the Pakistan. And in near
future they have plan of launching a new brand whose name is not disclose yet. And
there management team have some calculation that there market shares should
increase by 10% annually.

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 SWOT Analysis:

With the help of SWOT analysis we can easily formulate strategy by keeping in mind organization
mission. How SWOT analysis help us. Through SWOT analysis we can easily assess the
company’s Strength, Weakness, Opportunity and Threats.

Strength:
 Largest footwear group in Pakistan with 60 years’ experience.
 Best quality and durable shoes for sports and school are provided to a customer that is the
strength of the company because be quality attract the customers.
 More product lines or Brands like Cheetah, Don Carlos, Liza, Toz, Skooz, and CALZA.
 SSC has many experienced employees in different department.
 SSC is investing more and more for importing new machines.

Weaknesses:
 SSC shoes is not available in all shoes size in stock.
 They don’t have fashionable variety of shoes.
 SSC should try to find out new segments or new market for their products.

Opportunity:
 SSC can maximize their share value and can generate more revenue by cover additional
market segments.
 They should try to spend more on advertising of their products. So, in this way their
revenue may increase.
 Due to globalization SSC should try to get cheap raw material from the other countries.

Threats:
 Changing trends: Fast changing trends are difficult to adapt, it SSC don’t meet or doesn’t
change their product according to market trend. Then, this will give the bad impact on his
business
 Competition: competition is increasing day by day because of setting up modern units this
the major threat for SSC.
 Technology: Due to the advancement of the technology everyone is trying to get lead over
their competitors.

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 Conclusion:

To conclude I can say that I had a wonderful experience during my stay of six weeks as an internee
there which make me possible to write in this report. In Pakistan the brand image of Service Sale
Corporation (PVT) LTD, (SSC) is very strong in the mind of its customer and they are very
successful in shoe making industry.
They have more product lines or Brands like Cheetah, Don Carlos, Liza, Toz, Skooz, and CALZA
this is the reason they are leading Organization in shoe Making Industry, their products are durable
and have an excellent quality but their products don’t meet the necessity of fashion trends. So, they
should have to work on it to add some fashion touch in their products, this is weakness of Service
Sale Corporation (PVT) LTD, (SSC), but they can convert their weakness into opportunity to
target those customer who follows the fashion trend, through this they can increase their market
share and can convert those target customer to loyal customers.

Page | 46
 Recommendation:

 They should try to minimize their transportation expenses

 They should try to explore new market segments in other countries.
 They should try to spend more on advertising of their products.
 They should try to increase their promotion activities. E.g. sale promotion, special
discount.
 They should carefully study their competitors.
 Incentives should be given to motivate sales and recovery teams at initial stages.
 They should try to minimize their margins.
 They should try to find out new market for cheap raw material.
 They should increase the efficiency of their IT department
 They should try add some new varieties in their products. E.g. Stylo, Starlet launch many
fashion products every year.

Page | 47
 References

https://pakfootwear.org/pakistan-footwear-industry/
Information from HR Department.
Information from Finance Department.
Information form Marketing Department.
http://www.sscbrands.com/
https://pk.linkedin.com/company/service-sales-corporation

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