1
INTERSHIP REPORT
PRESENTED TO:
Dr. Fouzia Ali
Director
Hailey college of Commerce
University of the Punjab, Lahore.
PRESENTED BY:
KhushBakht Shahzad
BC17-418
7th semester
Afternoon (A)
Session 2017-2021
Hailey College of Commerce
Dated……..08-02-2021
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Letter of transmittal
Training Completion Certificate
3
4
Letter Addressed to a concerned Teacher
Prof: Dr. Fozia
Hailey College of Commerce,
University of Punjab, Lahore
Submission of Internship Report
Respected Ma’am,
I am pleased to present you the internship report, work place Inter valley
Construction Company dated from 01-July-2020 to 01- September-2020. I assure that I
made this report according to the format guided by the college administration. I cover all
the major functions performed during the internship period I learned by the supervisors
of my organization. I learned many professional skills during this period of time and our
studied skills were being studied. I also make you sure that the data I submit in this
report is collected with my best intention and to the source available for the data
collection and submission.
I assure you that the data is neither copied nor being taken from any other source. I
collect the whole data with my best research intention and I request to accept this report
and clear me in this section of study. I shall be thankful to you for this favour and I shall
need my teacher’s guideline and will never forgot the things taught by our teachers
during the four year period of study.
Yours Obediently,
KhushBakht Shahzad
Section A (Afternoon)
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Area Covered By the Report
Areas Covered by the Report are given as follows:

Executive summary

Introduction

History

Mission statement

Vision statement

Organization structure

Organization hierarchy chart

Work done by me

Ratio analysis

SWOT analysis

Conclusion

Project of IVVC

Financial statement

Bibliography
ACKNOWLEDGEMENT
“All praises for Almighty Allah, Who guides us in darkness and helps us in
difficulties and due respect for the Holy Prophet (Peace be upon him), who enables us
to recognize our creator.”
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I have no words to express my deepest sense of gratitude and thanks to Almighty Allah,
(The Compassionate and The Merciful), who enabled me to complete this report.
I render deep appreciation and gratitude to, Inter valley construction company’s staff,
Specially Mr. Shahzad and other staff for their valuable suggestions and kind
cooperation.
I am grateful to the University of the Punjab, Languages and my respected teachers
who gave me an opportunity to enhance my capabilities. This was very much helpful for
me because, I have learnt a lot by applying theoretical knowledge in practical field.
I am also grateful to all the employees of IVCC who guided me. The behavior of the
employees of all departments was very good and they gave a lot of time to guide me. At
the end, I would like to thank to my parents who always guided, supported & directed
me to the right way that enabled me to reach this stage.
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Contents
Letter of transmittal.......................................................................................................... 2
Training Completion Certificate ....................................................................................... 2
Letter Addressed to a concerned Teacher ...................................................................... 4
Area Covered By the Report ........................................................................................... 5
ACKNOWLEDGEMENT .................................................................................................. 5
Chapter 1 ...................................................................................................................... 12
Executive summary .................................................................................................... 12
This report will also include the role of employee relation officer that how Employee
relation officer is handling employee relations with employees and employer.
Responsibilities included are to resist the employee to move on court and solve matters
internally. ....................................................................................................................... 13
Chapter 2 ...................................................................................................................... 13
: Introduction: ............................................................................................................. 13
History: ....................................................................................................................... 14
Technical Associations .............................................................................................. 17
Management & Personnel.......................................................................................... 18
Our project management and execution philosophy: ................................................. 19
Mission statement: ..................................................................................................... 19
Vision statement: ....................................................................................................... 19
Core Values: .............................................................................................................. 20
Strategic Objectives: .................................................................................................. 20
Services Overview: .................................................................................................... 20
Fabrication Erection: .................................................................................................. 22
Chapter 3: ..................................................................................................................... 22
Nature of Organization ............................................................................................... 22
Competitors:............................................................................................................... 23
Directors:.................................................................................................................... 23
Organization profile .................................................................................................... 23
Geotechnical Investigation & Audit Work in Pakistan: ................................................ 23
Adits Work:................................................................................................................. 24
Geotechnical Investigation and Dewatering: .............................................................. 24
Piling Work: ................................................................................................................ 25
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Client: ......................................................................................................................... 25
IVCC CPEC PROJECT .............................................................................................. 26
Scope of Work: .......................................................................................................... 27
Geotechnical Investigation ......................................................................................... 27
Adits Work.................................................................................................................. 27
Client: ......................................................................................................................... 28
Piling Work: ................................................................................................................ 28
Mahl Hydropower Project in Pakistan: ....................................................................... 28
Geotechnical Investigation: ........................................................................................ 28
Adits Work:................................................................................................................. 29
Client: ......................................................................................................................... 29
Geotechnical Investigations in Pakistan ..................................................................... 29
Adits Work:................................................................................................................. 29
Client: ......................................................................................................................... 30
Material used in construction ..................................................................................... 32
Sand:...................................................................................................................... 32
Cement: ................................................................................................................. 32
Steel: ...................................................................................................................... 32
Machinery used in construction.................................................................................. 32
Excavator: ............................................................................................................. 32
Concrete Mixer:..................................................................................................... 33
Dumper Truck: ...................................................................................................... 33
Difficulties faced ......................................................................................................... 33
Chapter 4: ..................................................................................................................... 34
Organization Structure ............................................................................................... 34
Organization Hierarchy Chart..................................................................................... 35
Number of Employees ............................................................................................... 35
Head offices: .............................................................................................................. 36
Main office:................................................................................................................. 36
Lahore Office: ............................................................................................................ 36
Karachi Office: ........................................................................................................... 36
Subsidies: .................................................................................................................. 37
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Net Tax rate will be fixed for the construction sector, and constructors will be charged
tax per square foot or square yard. ............................................................................ 37
Chapter 5: ..................................................................................................................... 38
Work Done by Me ...................................................................................................... 38
(TASK AND PERFORMANCE) .................................................................................. 38
Week 1, 2 & 3 ......................................................................................................... 38
Week 4 ................................................................................................................... 39
Week 5 ................................................................................................................... 39
Week 6 ................................................................................................................... 39
Week 7 & 8 ............................................................................................................. 40
Summary and knowledge gained ............................................................................... 40
Chapter # 6: .................................................................................................................. 41
Ratio Analysis ............................................................................................................ 41
Benefits of ratio analysis: ........................................................................................... 41
Analysis of Year 2019 vs 2018:.................................................................................. 42
Liquidity ratio: ....................................................................................................... 42
Activity ratio: ......................................................................................................... 42
Debt ratio: .............................................................................................................. 42
Profitability ratio: .................................................................................................. 42
Current Ratio:........................................................................................................ 42
Analysis:..................................................................................................................... 43
Cash Ratio: ................................................................................................................ 43
Analysis:..................................................................................................................... 44
Asset Turnover Ratio: ................................................................................................ 44
Analysis:..................................................................................................................... 45
Total Debt Ratio: ........................................................................................................ 45
Analysis:..................................................................................................................... 46
Equity Multiplier: ......................................................................................................... 46
Analysis:..................................................................................................................... 46
Total Asset Turnover Ratio: ....................................................................................... 47
Analysis:..................................................................................................................... 47
Capital intensity Ratio: ............................................................................................... 48
Analysis:..................................................................................................................... 48
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Return on Equity: ....................................................................................................... 49
Analysis:..................................................................................................................... 49
Return on Assets: ...................................................................................................... 50
Analysis:..................................................................................................................... 50
Chapter 7: ..................................................................................................................... 50
: Financial Analysis: ................................................................................................... 50
Importance of Financial Statement Analysis .............................................................. 51
The financial statement analysis is important for different reasons: ........................... 51
1. Holding of Share: .............................................................................................. 51
2. Decisions and Plans: ........................................................................................ 51
3. Extension of Credit: .......................................................................................... 51
4. Investment Decision: ........................................................................................ 51
Financial Position over the years ............................................................................... 52
Operating Expenses (Rs. in Millions)
For the Year
2019 ........................................................................................................................... 53
Balance sheet ............................................................................................................ 55
For the Year 2019 ...................................................................................................... 55
Comprehensive income Statement ............................................................................ 56
Statement of Cash flow .............................................................................................. 57
Statement of Change in equity ................................................................................... 59
Chapter 8: ..................................................................................................................... 60
Competitive and marketing in general: ....................................................................... 60
Marketing tools:.......................................................................................................... 62
Chapter 9: ..................................................................................................................... 65
SWOT Analysis of Construction Company ................................................................ 65
Dynamic ................................................................................................................. 65
Efficient ................................................................................................................. 65
Follow Deadlines .................................................................................................. 66
Well-experience Management.............................................................................. 66
Variety of Projects ................................................................................................ 66
Doesn’t Go Down Easily ...................................................................................... 67
Weaknesses of a Construction Company .......................................................... 67
Relying on One Client .......................................................................................... 67
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Limited New Projects ........................................................................................... 67
Costly Poor Decision ............................................................................................ 68
Opportunities for of a Construction Company................................................... 68
Separate Staff for New Clients............................................................................. 68
Notice Trends ........................................................................................................ 68
Smart Houses........................................................................................................ 68
Threats to a Construction Company ................................................................... 69
Economic Recession............................................................................................ 69
Conclusion: ................................................................................................................ 69
Recommendations: .................................................................................................... 69
Skill Acquired: ............................................................................................................ 70
Chapter 10: ................................................................................................................... 70
Letter of Authorization: ............................................................................................... 70
Chapter 11: ................................................................................................................... 76
Bibliography: .............................................................................................................. 76
List of Illustrations
Bar chart of current ratio…………………………………………………………………….
Bar chart of cash ratio………………………………………………………………………
Bar chart of asset turnover ratio…………………………………………………………..
Bar chart of total debt ratio
Bar chart of equity multiplier
Bar chart of return on equity
Bar chart on return on assets
Balance sheet
Statement of cash flow
Statement of comprehensive income
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Statement of financial position
Chapter 1
Executive summary
I joined IVCC from July 1, 2020 to September 1, 2020. My internship report includes all
the information about my internship. This report will show complete historical
background of INTER VALLEY CONSTRUCTION COMPANY.The information is
collected from both the sources, primary and secondary. IVCC was inaugurated in
1958. It is a construction organization.
During my internship over IVCC it was an immense pleasure for me to be there to serve
for some time period. I learnt a lot there. As Experience is the key. During my stay
there, I experienced different type of tasks. There I learnt to forward different letters and
the way in which the letters are forwarded. Filing and maintenance of employee record
files in record room. Handing over experience letters to employees and side by side
maintained a record file. Employee demands are forecasted and called for interview on
demand. For every new joiner training and development executive arranges the
orientation, manages their performance appraisals and employee development
trainings.
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This report will also include the role of employee relation officer that how
Employee relation officer is handling employee relations with employees and
employer. Responsibilities included are to resist the employee to move on court
and solve matters internally.
Chapter 2
: Introduction:
Construction industry is one of the most crucial components of the economy in
developed countries. The impact of construction industry goes beyond the creation of
buildings or infrastructure. The industry creates jobs and serves almost all other
industries, where the further creation of economic value occurs within or by means of
buildings or other “constructed assets”. Construction industry is a very complex field
where a lot of factors and elements come into play. They all contribute to the way
business is conducted. This industry is quite specific in its nature. If one has to name its
unique features, they are: high risks, technological complexity, legislative complexity,
long payback period, need for large investments in the initial phase of a project, etc.
That is why sometimes certain marketing tools are hardly applicable when it comes to
marketing construction services and there has to be a thorough look into the problem.
Anyhow it is hard to overestimate the importance of marketing planning in construction.
In the past there was enough work around for companies to get desired bids and to
make a good profit. Contractors and their clients were establishing strong steady
relationships. However, with a change in the supply and demand balance between
contractors and their clients, construction industry these days is mostly dominated by
the latter. There are too many contractors and too little work. Moreover, contractors,
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nowadays, are put under pressure on high quality, meeting deadlines and great
customer service more than ever. Clients and client bases also have an expanding field
from which to make their final choice of contractor. In today’s reality a successful
company has no choice but to constantly monitor situation on the market, its main
competitors, grasping trends and changes and being able to respond quickly and
effectively. A large number of companies collapse during construction crises. However
many companies do manage to overcome obstacles successfully.
IVCC was the first Pakistani company to perform Soil & Geotechnical Investigation
works. Also the first Pakistani company to work on floating barges. We still remain the
leading company for Soil & Geotechnical Investigation as proven by the hundreds of
successfully completed projects that were undertaken by IVCC for a variety of global
clients.
History:
IVCC ENGINEERING (Private) Limited, incorporated in August 1958 as the Indus
Valley Construction Company Limited is a pioneer in the drilling industry in Pakistan and
is the leading Geotechnical and Specialist Civil Engineering Contractor.
From modest beginnings, IVCC established an enviable reputation within a short span
of five years to win contracts in every one of the major works under the Indus Basin
Replacement Projects in Pakistan, transforming itself from a drilling to a specialist civil
engineering company. At the Mangla and Tarbela Dams, IVCC carried out large
volumes of drilling, site investigation, soil mechanics tests, grouting and other specialist
works. Later, IVCC has worked on major bridges and other specializes works on the
motorways and highways and on water resource development projects, buildings and
other structural works.
The true test of our endeavors is reflected in our performance and results on hundreds
of contracts and an ever expanding roster of satisfied clients. From the largest project
involving complex problems, to the simplest assignment, our commitment to excellence
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distinguishes IVCC from the rest. IVCC believes that it is dedicated team work that
produces an environment of creativity and excellent engineering. Together with large
investments in equipment, logistics, computers and the adoption of modern concepts of
planning, management and control has placed IVCC in the ranks of international
specialist companies of repute. IVCC’s knowledge base, its technology and equipment
and its dedicated, qualified and experienced team of professionals and technicians has
enabled it to deliver the most challenging of construction problems and provide
innovative, elegant and economic solutions.
IVCC was incorporated as a private limited company in August 1958 and is
celebrating sixty years of successful running operations in 2018. It is a pioneer of the
drilling industry in Pakistan.
Starting from its first modest drilling contract, IVCC established an enviable
reputation in the drilling industry of Pakistan in short span of five years. The early sixties
saw the execution of the Indus Basin Replacement Projects in Pakistan. It had drilling
assignments in every one of its major components. At Mangla and Tarbela Dams, IVCC
carried out large volumes of drilling, site investigation, soil mechanics tests, grouting
and other specialist works. The seventies were years of consolidation and saw the
induction of a new generation of the founding family into the business. The first
international contract was obtained. At home, the company was firmly established as an
innovative organization committed to providing the very latest in equipment and know
how to its continuously expanding list of clients.
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The eighties and nineties have seen IVCC moving into other specialized fields and
transforming its-self from a drilling company into a specialist civil engineering company.
In more recent times, considerable investments have been made in equipment and
logistic resources coupled with computerization and adoption of modern management
concepts. This has placed IVCC in the ranks of international specialist companies of
repute. The family’s third generation, educated and trained in the USA, is with IVCC and
the company has entered the twenty first century with enthusiasm and confidence.
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Technical Associations
To acquire a firm technical base and technology, IVCC was associated in its formative
years with Messrs.’ Geostrazivanja of Yugoslavia and Messrs.’ Craelius A.B. of
Sweden. Later, it entered into a long association with the Cementation Company Ltd., of
U.K. In 1974, the Cementation Company wound up business in Pakistan and
transferred most of its equipment and staff to IVCC.
IVCC’s experience of working with Chinese, American, Australian, British, Bulgarian,
Canadian, Czechoslovakian, French, German, Italian, Japanese, Korean, Russian,
Yugoslavian, and Pakistani consultants and contractors has given it professional
insights into the latest international technology and a familiarity with the various
international standards, codes of practice and specifications.
IVCC has done the largest diameter (2.2 meters) piles to the greatest depth (64 meters)
in Pakistan which were done on the Lahore-Islamabad Motorway Project. IVCC has
also 8performed the heaviest load test by any
In Pakistan, IVCC is registered as a Class “A” (No Limit) contractor with the Pakistan
Engineering Council and all the important government agencies for all types of civil
engineering works. Internationally, IVCC has executed contracts in Africa as well as
remote regions of Asia.
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Management & Personnel
The management team at IVCC consists of top flight engineers and managers with vast
technical and administrative experience. Its senior staff is well versed in modern
business management techniques, holding diplomas in advanced management.
Due to the specialized nature of its work, IVCC runs in-house training programmers for
its lower and middle level technicians. On-the-job-training is imparted to apprentices
who on successful completion of training are absorbed in the regular cadre. Rarely do
trained apprentices leave the company’s service and the vast majority of technicians
have been with IVCC for ten years or more. Pakistani company in Pakistan (4000 tons)
at Creek Marina, Karachi. We are also the only company in the country which is
equipped to perform fully instrumented load tests. We have worked in the most
demanding conditions across the most hostile terrains in Pakistan and always
completed what we set out to do. IVCC engineers have worked across the length and
breadth of Pakistan which has given us deep cultural familiarity across several regions
and areas especially in zones that may be considered hostile by others. IVCC has
always performed better than others when it comes to completing specialized
engineering projects where the competition is tough and there is little margin for error.
Our clients are demanding and we are only proud to have such clients since they
provide us with the challenges that no other construction company in the country can
complete in the manner that we can able construction began as a general work
construction in 1994. Over the years the group has undertaken many challenging
projects and accumulative skills, known- how and experiences in design and build
solutions, project management services, building traders and related engineering works.
Today, construction takes on the role of main contractor for small to medium size
projects and performs project management services to coordinates specialist trades for
industrial/commercial projects. We also provide design inputs and engineering solutions
as value-add services to our clients.
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Our objective is to provide our clients with an "I am assured" experience when we are
chosen to execute their projects. Our emphasis on clear communication and followthrough procedures ensures that client's objectives are top priority in the planning and
execution of all our processes.
Our project management and execution philosophy:
 Create detail schedule and resources plan to meet client's project objective.

Communication clearly with all project stakeholders.

Track project progress and fine-time deviation.

Supervise closely on quality of work done.

Complete and commission the project on time.
Mission statement:
To become an exemplary engineering, and manufacturing company known for its
project management skills, high integrity and unflinching commitment of its
entrepreneurial owner- employees towards customer and other business associates,
and to provide the best value to stakeholders.
Vision statement:
To be a world-class infrastructure construction and Real Estate Development company
committed to total customer satisfaction and enhancing shareholder's value, by building
on our strengths - innovative designs, superlative quality of material, cutting-edge
technology, timely completion and demonstrating the highest standards of
workmanship.
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Core Values:
Whether you are an owner, contractor, architect or consulting engineer, IVCC
Engineering provides you unique advantages for your projects
Strategic Objectives:
Begin the QI goal-setting process by seeking to understand the overarching strategic
goals of the company as a whole, or of individual departments and teams. This can
reveal the areas of the business in most need of quality improvement, whether it be in
sales, customer service, product development, marketing or even organizational
structure. Understanding the general, long-term objectives that lead to a quality
improvement project can help you set more specific and measurable goals for certain
areas of the business. By understanding why and where quality needs to improve, you
can then set more specific goals to achieve the company's strategic objectives.
Services Overview:
In the last sixty years, IVCC has transformed itself from a drilling company to a
specialist civil engineering company. Heavy investments in equipment and logistic
resources coupled with computerization and adoption of modern management concepts
has placed IVCC in the ranks of international specialist companies of repute. The
following are just some of the fields that IVCC provides services for:

Geotechnical and Subsoil Investigations

Geo hydrological Investigations

Mineral Exploration

Water wells

Piling

Sheet Piling

Dewatering

Grouting
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
Guniting and Shotcreting

Vibrofloatation and Diaphragm Walls

Tunneling, Mining and Shaft Sinking

Demolition, Blasting and Quarrying

Silos and Slip forming

RCC and Pre-Stress Bridges

Soils and Materials Testing

Other Specialist Works
The deployment of sophisticated equipment requires stocking a comprehensive
inventory of fast moving spares and accessories. The inventory runs into tens of
thousands of items and is computer controlled for optimum utilization. Arrangements
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exist with suppliers for air freighting breakdown spare parts, thus enabling reduction in
costly downtime on job sites and meeting time deadlines. From our central depot at
Lahore we can dispatch material all over the country, usually overnight. Production is
geared to meet the requirements of the contracting division. However, works for
numerous clients are executed concurrently with stringent delivery schedules. Constant
research and development is carried out on company equipment to update components
and adapt to local conditions.
Our capabilities include the following:
Fabrication Erection:
 Machining

Equipment Maintenance

Engine repair and Overhaul

Plant Overhauling

Foundry & Production

Spare Parts Procurement and Management

Inventory Control Management

Agricultural Implements

Steel Pipes & Casing

Industrial Plant Management

Technical Training

Personnel Administration

Transportation

Improvisation

Research & Development
Chapter 3:
Nature of Organization
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Competitors:
Inter valley construction does not have such any competitors in Asia because
specialized for geotechnical contract in Pakistan
Directors:
 BATOOL FATIMA TEZ ZEHRA

MRS.AMTUL HAI

ZOHAIR AHMED ATAULLAH

SHOAIB AHMED ATAULLAH

LT.COL (R) CHOWDERY MU
Organization profile
Azad Patten Hydropower Project under CPEC (Jhelum River, Pakistan) 2017
Geotechnical Investigation & Audit Work in Pakistan:
Drilling of 2 Boreholes ZKC-1 (70 Meters) and ZKC-2 (45 Meters) on Jhelum River. IVCC
Carried out Carry out 20 water pressure tests and 2 water injection tests (Total drilling
115 meters). Drilling of 11 (ZKY-1 to ZKY-11) Rotary drill holes on dry land both vertical
and inclined, up to a maximum depth of 165 meters for vertical and 210 meters for inclined
holes. Total Drilling footage for this phase was 1,215 meters.
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Adits Work:
Excavation (tunneling) of Exploratory 6 Adits (Size 2m x 2m) at Dam Abutment (PD1,
PD2, PD3, PD4, PD2-1 & PD4-1). Maximum length of an Adit was 70 meters. Total length
of Adits is 279 meters. 2,350 tons of steel used in Steel supports and 22.74 cubic feet
used for wooden supports.
Client: Investigation Department, China Water Resources Beefing Investigation, Design
and Research Co. Ltd., P.R. China (IDBIDR) / Pakistan Water & Power Development
Authority (WAPDA)
Port Qasim 2 x 660 MW Coal Fired Power Plant
Geotechnical Investigation and Dewatering:
IVCC conducted geological investigation of 47 boreholes in all types of soil and rock using
rotary drilling equipment including recovery of cores and provision of core boxes and SPT
tests. A total number drilling footage, for boreholes, was 1316 meters. Work also included
drilling and installation of 55 Dewatering Wells. IVCC also submitted detailed
Geotechnical reports.
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Piling Work:
IVCC installed a total number of 3,233 Piles with diameter up to 1 meter and the maximum
depth of 25 meters. The total drilling footage for these piles was 58,355 meters. 240 PDA
Tests and 1002 PIT Tests were also carried out and 1976 tons of Rebar Steel was used.
Client:
SEPCO III Electric Power Construction Corporation/ Sinohydro Resources Ltd. Port
Qasim Coal Fired Electric Power Co. Ltd.
Maple Leaf Cement Factory – Iskanderabad, Mianwali District – Pakistan (20172018)
IVCC Engineering Pvt Ltd executed Geotechnical Investigation works for Maple Leaf
Cement plant, one of Pakistan’s largest cement factory. The work was conducted in
various phases. A total number of 55 boreholes (max depth 45 meters) were drilled, using
rotary drilling equipment. 1,794 meters were drilled during this particular phase of the
project, with 250 CPT/SPT, 9 UDS and 238 Pressure Meter Tests. A report on all
Geotechnical works was also submitted to client.
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For phase II, IVCC conducted 7 load tests with diameter of piles at 660mm and 800mm
and maximum depth of 31 meters. Cross whole sonic logging, P.I.T. and P.D.A tests were
also conducted.
IVCC conducted Plate Load Tests (upto 55 tons) for a storage shed at Maple Leaf
Cement. The size of the plate was 500x500x45 mm, pressure on loading plate/soil up to
313 PSI.
IVCC CPEC PROJECT
Projects related to the China–Pakistan Economic Corridor also known as CPEC). CPEC
is the largest bilateral agreement made between China and Pakistan which aims to create
an economic corridor that promotes bilateral connectivity with construction, investment as
well economic and trade related initiatives between the two nations. IVCC is fully engaged
and onboard with several Chinese as well as local partners in this endeavor and has
already successfully completed many CPEC related projects while others are in the
pipeline.
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Karot Hydropower Project
Scope of Work:
Geotechnical Investigation
IVCC was involved in drilling of 13 Boreholes with depths from100-130 meters, using
Straight Rotary Machines in weathered and fresh rock obtaining continuous samples
using double tube coring equipment. Total drilling footage for 13 Boreholes was 1,690
meters. IVCC drilled 3 Boreholes on dry land with depths of up to 100 meters in Stage –
1. Total drilling carried out 265 meters. 7 Boreholes, up to depths of 100 meters, were
drilled in the riverbed. Stage -2 consisted of drilling 14 Boreholes on dry land up to depths
of 100 meters. Total drilling carried out in Stage-1 and Stage-2, was 2,010.50 meters and
618 Packer Tests (water pressure tests) were also carried out. All drilling was carried out
in weathered/ fresh rock obtaining continuous samples using double tube coring
equipment in inclined holes drilled to the downward.
Adits Work
Excavation (tunneling) of Exploratory 3 Adits (PD3, PD4 & PD5) (Size 2mx2m), was also
conducted. Total drilling footage for these Adits was 235 meters. IVCC was also involved
in the excavation (tunneling) of 5 Exploratory Adits (PD1, PD2, PD4, PD6 & PD8) and the
size for these was 2mx2m. Total drilling footage for these 5 Adits was 244.10 meters.
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Client:
Changing Geotechnical Engineering Corporation (CGEC) (Wuhan) P.R. China / Pakistan
Water & Power Development Authority (WAPDA).
Haveli Bahadur Power Project: 1100-1400 MW RLNG Based Combined Cycle Power
Plant (2017)
Piling Work:
IVCC constructed 3 Piles of 760 mm diameter with maximum depth of 30.35 meter. Total
Drilling footage 80 meters. 3 Pile Load Tests of 750 Tons each were carried out. Pile Load
Test Reports of TP 7, TP 7A & TP 8 were also submitted to the client.
Client: Punjab Thermal Power (Pvt) Ltd. (PTPL), Government of Punjab / National
Engineering Services (Pvt) Ltd. (NESPAK) Lahore
Mahl Hydropower Project in Pakistan:
Proposed 590 MW on Jhelum River & Mahl River at the border of AJ&K and Punjab
Province.
Geotechnical Investigation:
IVCC drilled 52, vertical and inclined, Boreholes. These had a maximum depth of up to
235 meters. This work included Land & Submerged Drilling. 523 water pressure tests
were carried out and the drilling footage was 5,098 meters.
29
Adits Work:
IVCC also worked on Excavation (tunneling) of 1 Exploratory Adit (Size 2mx2m) for Site
Investigation (location PD3) and total length of the Adit was 34 meters.
Client:
Shanghai Investigation, Design & Research Institute Co. Ltd. (SIDRI) P.R. China
/Pakistan Water & Power Development Authority (WAPDA)
Geotechnical Investigations in Pakistan
IVCC drilled 4 Boreholes, ZKT-4 (Dia. P/H/N/B), ZKT-5 (Dia. H/N), ZKT-6 (Dia. H/N) and
ZKC-15 (Dia. H/N). These had a maximum depth of up to 400 meters. Total drilling
footage for this phase was 1,325 meters. IVCC carried out Rotary Drilling to recover
cores from soil, weathered and fresh rock. All holes were drilled vertically. Water
Pressure Tests were also carried out.
Adits Work:
IVCC also worked on excavation (tunneling) of Exploratory 3 Adits (Size 2.5mx3.25m)
for Site Investigation. Locations for Adits are PD8 (Length 180m), PD9 (Length 180m) &
30
PD10 (Length 140m). Total drilling footage for Adits was 500 meters. IVCC worked on
further Excavation (tunneling) of Exploratory 4Adits PD3, PD4, PD5 & PD6) 2mx2min
size for Site Investigation. Maximum depth of this set of Adits was 62.50meters. 12
Exploratory Chambers (Chamber Size 2mx2mx2m). Removal of overburden from Adits.
Total of 40 meters.
Client:
Investigation Department, China Water Resources Beefing Investigation, Design and
Research Co. Ltd., P.R. China (IDBIDR) / Pakistan Water & Power Development
Authority (WAPDA)
31
32
Material used in construction
Sand:
These are cohesion less aggregates of either, rounded sub rounded, angular, sub
angular or flat fragments of more or less unaltered rock of minerals consisting of 90% of
particles of size greater than 0.06 mm and less than 2 mm. Alternatively, these are
coarse grained cohesion less particles of silica derived from the disintegration of rock.
Cement:
The cement often called the magic power is a fine ground material consisting of
compound of lime, silica alumina and iron. When mixed with water it forms a paste
which hardened and bind the aggregates called the Concrete. Cement is the binder that
holds concrete and mortars together.
Steel:
To enhance the load carrying capacity of the concrete it is reinforced with steel bars
of different diameters provided in inappropriate manner. Such concrete is called
reinforced concrete and the bars are called the reinforcement. These bars are provided
at various locations to resist the internal forces, which are developed due to the loads
acting on the structure.
Machinery used in construction
Excavator:
Excavators are heavy construction equipment consisting of a boom, stick, bucket and
cab on a rotating platform (known as the "house"). The house sits atop an
undercarriage with tracks or wheels. A cable-operated excavator uses winches and
steel ropes to accomplish the movements. They are a natural progression from the
steam shovels and often called power shovels. All movement and functions of a
hydraulic excavator are accomplished through the use of hydraulic fluid, with hydraulic
cylinders and hydraulic motors.
33
Concrete Mixer:
A concrete mixer (also commonly called a cement mixer) is a device that
homogeneously combines cement, aggregate such as sand or gravel, and water to form
concrete. A typical concrete mixer uses a revolving drum to mix the components. For
smaller volume works portable concrete mixers are often used so that the concrete can
be made at the construction site, giving the workers ample time to use the concrete
before it hardens. An alternative to a machine is mixing concrete by hand.
Dumper Truck:
It is a vehicle used for carrying bulk material, often on building site. A dump truck
(or, UK, dumper truck) is a truck used for transporting loose material (such as sand,
gravel, or dirt) for construction. A typical dump truck is equipped with an open-box bed,
which is hinged at the rear and equipped with hydraulic pistons to lift the front, allowing
the material in the bed to be deposited ("dumped") on the ground behind the truck at the
site of delivery. It was used in the project to carry and transport fine and course
aggregates to the construction site.
Difficulties faced
In this project I obtained knowledge about the basic & advanced techniques of project
construction as well as observed the challenges and difficulties which a civil engineer
has to face during construction. A few have been listed below
34
Difficulties in testing of materials.
Chapter 4:
Organization Structure
IVCC is falls under the functional type of organization. Functional organizational
structures are the most common. A structure of this type groups individuals by specific
functions performed. Accounting and purchasing are organized by separating each of
these areas and managing them independently of the others
35
Organization Hierarchy Chart
BOD
Manager Director
Executiv
e
Director
Finance
&
Adminst
ration
Executive
Director
Enginee
ring &
Planning
General
Manager
General
Manager
(operatio
nal)
Constr
uction
manag
er
site
Engin survey
or
eer
Geolo
Wor
gist
k
Cre
w
(support &
mana
ger
Manager
plann
contract
ing &
coor
team of
dinat
qauality
Projec
ing
surveyor
t
manag
er
planning
Engineer
Sched
uler
quantity
serveyor
Mana
ger
Logist
ics
acct &
adm
manag
er
Shi
ppi
ng
dep
maintenanc tt
e Engineer
site
work
shop
Number of Employees
In IVCC the division of employees working here is as:
Logistics
Man
ager
Inven
tory
pur
cha
ser
Finance &
ManagAdm
er Deptt
Works
Engin
e
shop
Stor
es
36
Daily Wagers:
06
Employee (Contract):
30
Employee (Permanent):
20
Locum employees:
15
Internee:
02
Short term employees:
04
Hence, total numbers of employees working are more than 500.
Head offices:
Inter valley construction company has 2 main offices. Head office is in Lahore and
Karachi.
Main office:
FB- 4 FLOOR, AWAMI COMPLEX, USMAN BLOCK, NEW GARDEN TOWN, LAHORE54700
Lahore Office:
DEPOT & WORKSHOP: PLOT NO. 245 & 246 SUNDAR INDUSTRIAL ESTATE,
LAHORE.
Karachi Office:
REGISTERED OFFICE: SUNNY SIDE VILLA NO.5, 15/8 BLEAK HOUSE ROAD, CIVIL
LINES KARACHI- 75530.
37
Subsidies:
Prime Minister Imran Khan on Friday elevated the status of the construction sector to
that of an industry while announcing incentives for investors and businessmen as the
government tries to mitigate the economic impact of the coronavirus outbreak.
While speaking to journalists, the premier said that a board will also be formed to
address all issues and matters related to the industry. He added that all industries that
are connected to construction will continue to function even during the lockdown.
He said that the reason he was paying attention to the construction sector was that it
generated jobs for daily wage workers, many of whom have lost their income due to the
ongoing lockdown.
The main incentives announced by the premier include:

All the people investing in the construction sector this year will not be questioned
about their source of income.
Net Tax rate will be fixed for the construction sector, and constructors will be
charged tax per square foot or square yard.

People carrying out construction in the Naya Pakistan Housing Scheme for the
poor will only have to pay 10 per cent of the fixed tax.

Withholding tax will be waived off for all construction sectors except the formal
sectors of steel and cement.
38

Sales tax will be reduced in coordination with provinces.

Any family selling their house will not have to pay any capital gains tax.

A subsidy of Rs30 billion to be given for the Naya Pakistan Housing Scheme.

Construction sector to be given the status of an industry.

Construction Industry Development Board to be set up to support the sector.
Chapter 5:
Work Done by Me
(TASK AND PERFORMANCE)
Week 1, 2 & 3
o In first week of internship, First day attend the orientation know about
construction company
o Second day, assigned me the task of files review of IVCC employees and
there are plus employees of IVCC.
39
o In filing the documents of employees i.e CNIC, PNC Certificate etc. that
they full and not expired if they are expired or missing any document than
enter in an excel file.
o During first three weeks my task was “file review” and I performed it.
Week 4
o In week 4, the next task assigned me to find the contra entry in the
accounts of bank and also the organization by using bank reconciliation
statement. I perform this task and learn new things.
o During this week my duty is to check the balance of cash deposit and cash
return of bank with organization with same balance.
o In this task, entry is recorded to reverse on the other side of an account. In
a debit entry is recorded in an account it will be recorded on the credit side
and vice versa.
Week 5
o In week 5, new task assigned me to sort listing of letter of credit.
o During this task in sort listing and selection department my supervisor
gives me a list of code. According this code I was list the letter of credit of
different banks as to check name, CNIC, format etc
o Also sorting the bank document refer with L/C.
Week 6
In week 6, I assigned two tasks.

First task in Finance Department and the task was sorting and checking
import and export bills. During this task I was sort the bills by sequence as
numbering then checked with the voucher as undertaking GD.

Next task was very interesting and informative. In last week I move from
Finance Department to BS Department as recreationalists. In this Department
40
in the supervision of sir Shahzad, I was found the customer history by
checking the refuel letter.

A refuel letter is a type of letter in which all data is provided as customer
history. A refuel is prizes are awarded by organization to their employees. At
least 90%of gross receipts much be used by eligible tax exempt organization
for the benefit of employees.

With these tasks, my internship period was successfully completed. All tasks
was different for me but I performed well with interest. All staff of SKMCH&RC
was very cooperative and kind. Those period of internship gave me a lot of
learning objectives as personal as well as professional.
Week 7 & 8
In week 7 and, in my last week I assigned different task.

First task is check the voucher and journal voucher and record the entries

Second task is check the BRS, cash flow, income statement, and balance
sheet and then record the entry.

Summary and knowledge gained
This internship report contain about my work experience with HRL Pvt. Limited. It
was very interesting and knowledge gaining internship to me. I observed a lot of
execution of my theoretical knowledge in the field which I learnt from books. I
learnt the following skills

The execution of different field activities on their specific schedule.

Project manager have to look after not only the major deadlines, but also make
decision on all matters.

The project manager is actually the coordinator of each project and is
responsible to make the project’s progress smooth and on track.

The control of project staff and to check different field’s coordination like
mechanical and electrical working together on specific activities.

To check the coordination between different fields is appropriate.

In order to get good progress the quality control on project needs a very good
coordination and large quantities of man power, equipment and funds.
41

The concrete should be properly prepared by mixing of sand, cement and water
according to the standards of civil engineering.

The construction company should focus on developing the skills of labour to
increase the work speed and efficiency.
Chapter # 6:
Ratio Analysis
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick
indication of a firm's financial performance in several key areas. The ratios are
categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset
Management Ratios, Profitability Ratios, and Market Value Ratios.
Ratio Analysis as a tool possesses several important features. The data, which are
provided by financial statements, are readily available. The computation of ratios
facilitates the comparison of firms which differ in size. Ratios can be used to compare a
firm's financial performance with industry averages. In addition, ratios can be used in a
form of trend analysis to identify areas where performance has improved or deteriorated
over time.
Benefits of ratio analysis:
Different users such as investors, management, bankers and creditors use the ratio to
analyse the financial situation of the company for their decision making purpose.
Accounting ratios are important for judging the company's efficiency in terms of its
operations and management.
Ratio Analysis is an important and age-old technique of financial analysis. It simplifies
the comprehension of financial statements. Ratios tell the whole story of changes in the
financial condition of business. It provides data from inter firm comparison. They also
reveal strong firms and weak firms, over- valued and undervalued firms. Ratio analysis
also makes possible comparison of the performance of different divisions of the firm.
42
These ratios are helpful in decision about their efficiency of otherwise in the past and
likely performance in future. Ratios also help in Investment decisions in the investors and
lending decisions in the case of banker.
Analysis of Year 2019 vs 2018:
Liquidity ratio:
Liquidity ratios measure a firm’s ability to meet its short term (current) obligations. This
ratio indicates the firm’s ability to pay its short term liabilities by those assets expected to
be converted to cash in the near future. Current assets normally include cash, marketable
securities, accounts receivables, and inventories. These include
Current ratio
Quick (acid test) ratio
Activity ratio:
Inventory turnover ratio
Total assets turnover ratio
Debt ratio:
The ratio of total debt to total assets, generally called the debt ratio, measures the
percentage of funds provided by the creditors. The proportion of a firm's total assets that
are being financed with borrowed funds.
Profitability ratio:
Net profit margin
Return on total assets
Current Ratio:
CR =
Current assets
43
Current liabilities
2019
Current Ratio
2.74
2018
Current Ratio
2.51
Analysis:
The current ratio of the company has increased in 2019 as compared to 2018. The
current ratio of the company shows that liquidity position of the company is not very bad
the company wants to increase its current assets.
2.782.
2.51
20
2019
2018
Cash Ratio:
CR =
Cash
Current liabilities
2019
Cash Ratio
0.04
2018
Cash Ratio
0.22
44
Analysis:
The cash ratio of the company has decrease in 2019 as compared to 2018 because in
2018 company has more cash and bank reserves.
O.22
0.04
2018
2019
Asset Turnover Ratio:
ATR = _Sales
Total Assets
2019
Total Asset Turnover
0.49
Ratio
2018
Total Asset Turnover
Ratio
0.57
45
Analysis:
Now assets are used efficiently by the company. So that the turnover is decreased in
2019. The inventory turnover is also one of the major effects of this change. It tells
about the sales productive, plan and productive equipment utilization.
0.57
0.49
2018
2019
Total Debt Ratio:
DER = Total Assets-Total Equity
Total Assets
2019
Total Debt Ratio:
0.34
2018
Total Debt Ratio:
0.33
46
Analysis:
The total debt ratio of the company has increased in 2019 as compared to 2019 so it
can be inferring that the company is not much relaying on it own financing with
comparison to last year and has more pressure of creditors.
0.34
0.33
2019
2018
Equity Multiplier:
EM = Total Assets
Total Equity
2019
Equity
1.51
Multiplier
2018
Equity
1.50
Multiplier
Analysis:
The Equity Multiplier of the company has increased in 2019 as compared to 2018. The
company has increased its equity multiplier and able to manage it functions properly.
47
1.51
1.50
2019
2018
Total Asset Turnover Ratio:
TAT = Sales
Total Assets
2019
Total Asset Turnover
0.49
Ratio
2018
Total Asset Turnover
0.57
Ratio
Analysis:
Now assets are used efficiently by the company. So that the turnover is increased in
2018. The inventory turnover is also one of the major effect of this change.
48
0.49
0.57
2018
209
Capital intensity Ratio:
CI= Total Assets
Sales
Ratio
2019
Capital intensity
2.00
2018
Capital intensity 1.74
Ratio
Analysis:
The capital intensity ratio is decreased in 2018 so it signifies that now not much assets
are required to generate the sales.
49
2.00
1.74
2018
2019
Return on Equity:
RE = Net Profit
Total Equity
2019
Return on Equity
0.01
2018
Return on Equity
0.05
Analysis:
The Return on Assets of the company has increase in 2018 as compared to 2019
because finance cost is increased debt to equity ratio is increased. The portion which is
borrowed for business is paid to increase return on equity.
0.01
0.05
50
2018
2019
Return on Assets:
P/E ratio = Net Profit =
Total Assets
2019
Return on Assets
0.01
2018
Return on Assets
0.03
Analysis:
The Return on Assets of the company has increased in 2018 as compared to 2019
because now they are using their assets efficiently and cost of finance is also increased
and they have enlarge the time for account receivable and decreased the time for
paying account payable.
0.01
0.03
2018
2019
Chapter 7:
: Financial Analysis:
Financial analysis is the process of evaluating businesses, projects, budgets and other
finance-related entities to determine their performance and suitability. Typically, financial
analysis is used to analyse whether an entity is stable, solvent, liquid or profitable enough
51
to warrant a monetary investment. When looking at a specific company, a financial analyst
conducts analysis by focusing on the income statement, balance sheet, and cash flow
statement.
Importance of Financial Statement Analysis
The financial statement analysis is important as it provides meaningful information to the
shareholders in taking such decisions. ...The financial statement analysis is important to
them because they can obtain useful information for their investment decision making
purpose.
The financial statement analysis is important for different reasons:
1. Holding of Share:
Shareholders are the owners of the company. Time and again, they may have to take
decisions whether they have to continue with the holdings of the company's share or sell
them out. The financial statement analysis is important as it provides meaningful
information to the shareholders in taking such decisions.
2. Decisions and Plans:
The management of the company is responsible for taking decisions and formulating
plans and policies for the future. They, therefore, always need to evaluate its performance
and effectiveness of their action to realize the company's goal in the past. For that
purpose, financial statement analysis is important to the company's management.
3. Extension of Credit:
The creditors are the providers of loan capital to the company. Therefore they may have
to take decisions as to whether they have to extend their loans to the company and
demand for higher interest rates.
4. Investment Decision:
The prospective investors are those who have surplus capital to invest in some profitable
opportunities. Therefore, they often have to decide whether to invest their capital in the
52
company's share. The financial statement analysis is important to them because they can
obtain useful information for their investment decision making purpose.
Financial Position over the years
The financial statements of the inter valley construction company are annually audited
by a reputable auditing firm. Here, is a breakdown of the revenue and expenditure of the
company.
Financial statement
30 June 2019
30 June 2018
From completed contract
22,385,653
303,716,028
From contract - in-
296,497,411
53,130,452
318,883,064
356,846,480
Material consumed
21,138,218
75,209,881
Construction expense
78,357,121
6,772,588
Steel fabrication
3,082,073
12,574,249
Electricity, gas and water
5,627,352
1,010,850
Contract income
progress
Total
Contract expenditure
53
Boreholes drilling expense
1,467,540
33,269,119
Printing and conveyance
5,414,529
4,279,515
POL construction
223,167
46,366,836
Rental equipment
6,773,760
425,996
Site facilities
3,734,147
1,830,030
Carriage and freight
6,281,570
13,497,173
Postage, telephone and
995,413
1,198,723
Insurance
4,774,088
4,348,743
Repair and maintenance
6,829,185
9,406,917
Right of way
172,227
267,700
equipment
taxes
Vehicles running &maintain 3,193,553
5,239,003
Entertainment
2,006,840
1,317,984
Depreciation
20,356,091
21,253,220
Other overhead
2,797,769
2,291,558
Total
237,771,397
272,960,332
Financial year changed from June 30 to Dec 31 in December 2004. Therefore,
December 2004 represents 12 months results – 06 Months from Financial year ended
June 30, 2004 and six months ended December 31,
Categories
Operating Expenses (Rs. in Millions)
For the Year 2019
30 June 2019
30 June 2018
54
13,697,217
13,713,433
Directors' remumeration
12,720,000
14,100,000
Insurance
818,768
1,576,797
Postage, telephone and
683,159
890,326
1,164,674
1,442,863
Travelling and conveyance
58,918
183,632
Printing and stationary
324,013
341,697
Entertainment
359,041
652,297
Contract/ tender
-
21,000
Fee and subscription
919,377
2,143,708
Audit remuneration
125,000
125,000
Books and periodicals
63,875
61,396
Vehicles running
1,373,322
1,652,806
Depreciation
8,722,497
9,374,193
Repair and maintenance
983,518
1,418,239
Legal and professional
385, 800
698,000
Sundry expenses
1,050,698
399,103
Total
43,449,931
48,794,490
Salaries, wages and
administrative
taxes
Electricity, gas and water
char
documents
55
Balance sheet
For the Year 2019
ASSETS
30 June 2019
30 june 2018
Property, plant and equip
459,853,254
488,931,842
Long term deposit
1,655,614
1,655,614
Total
461,508,868
490,587,456
Stores, spares and tools
59,997,973
50,686,697
Contract work in progress
2,952,106
14,361,916
Contract receivable
61,458,093
5,338,748
Advances
18,794,846
10,205,369
Trade deposits &payment
5,525,574
4,050,643
Taxation
1,890,190
3,906,610
Cash and bank balance
27,353,151
31,566,437
Total Current assets
177,971,933
132,193,184
TOTAL ASSETS
639,480,801
622,780,630
6,000,000 each Rs.10
60,000,000
60,000,000
Issued, subscribed
46,845,540
46,845,540
Un-appropriated profit
348,113,230
339,059,715
Surplus on revaluation
26,851,296
28,264,522
Total equity
421,810,066
414,169,777
Long term financing
145,691,963
151,815,494
Staff retirement benefit
4,572,650
4,178,000
NON-CURRENT ASSETS
CURRENT ASSETS
EQUITY AND LIABILITIES
SHARE AND LIABILITIES
Authorized share capital
NON-CURRENT
LIABILITY
56
Liabilities against assets
-
-
Total Noncurrent liability
150,264,513
155,993,494
Trade and other payables
17,453,809
17,369,815
Mark - up accrued
1,641,871
281,030
Advance against works
825,000
-
Short term borrowings
47,485,442
34,816,880
Current position of liability
-
149,634
Total Current liabilities
67,406,122
52,617,359
Total Liabilities
639,480,801
622,780,630
CURRENT LIABILITIES
Comprehensive income Statement
Details
30 June 2019
30 June 2018
(Rupees)
(Rupees)
Contract income
318,883,064
356,846,480
Contract expenditure
(237,771,397)
(272,960,332)
Gross profit
81,111,667
83,886,148
Administrative and
(43,449,931)
(48,794,490)
Other income
261,096
23,088,094
Operating profit
37,992,832
58,179,752
Finance cost
(6,332,035)
(5,117,529)
Profit before tax
31,590,798
53,062,223
Taxation
(23,950,508)
(28,942,913)
general expenses
57
Profit after tax
7,640,289
24,119,310
Statement of Cash flow
Cash flow from operating 30 June 2019 (Rupees)
30 June 2018 (Rupees)
Activities
Profit before tax
31,590,797
53,062,22e
29,078,588
30,627,413
Provision of gratuity
394,650
407,300
Profit on disposal of fixed
-
(20,494,238)
Finance cost
6,332,035
7,117,529
Total
67,396,070
68,720,227
(9,311,275)
(2,555,831)
Contract in work progress
14,361,916
906,446
Contract receivable
(56,119,345)
32,278,799
Retention money
(8,589,477)
34,117,220
Advance
(1,474,931)
3,312,848
Trade deposit and short
2,016,420
(971,633)
(59,116,692)
67,087,949
Adjustment for non-cash
and other items :
Depreciation of property,
plant and equipment
assets
Effect on cash flow due
to working capital
changes
Stores, spares and loose
tools
receivable
term prepayment
Total
58
Trade and other payables
83,994
(5,861,650)
Advance against work
825,000
(28,387,677)
Total
908,994
(34,249,327)
Cash generated from
9,188,372
101,558,849
Income tax paid
(19,737,222)
(26,613,909)
Gratuity paid
-
(1,249,800)
Finance cost paid
(4,971,194)
(5,035,546)
Net cash (used in)
(15,520,044)
68,659,594
-
(40,436,579)
-
21,130,962
Long term deposit
-
(75000)
Net cash used in
-
(19,380,617)
Long term finances
(6,123,532)
(38,789,665)
Liabilities against assets
(149,634)
(18,463,919)
(6,273,166)
(57,253,584)
operations
generated from
operating Activities
Cash flow from investing
Activities
Payments of property,
plant and equipment
Receipt from sale of
property, plant and
equipment
investing Activities
Cash flow from financing
Activates
subject to finance lease
Net cash used in
financing Activities
Net decrease in cash and (21,793,210)
cash equivalents
(7,974,607)
59
Cash and cash
(22,740,126)
(14,765,519)
(44,533,336)
(22,740,126)
equivalents at the
beginning of the year
Cash and cash
equivalents at the end of
the year
Statement of Change in equity
Issued,
Un –
Surplus on
subscribed
appropriated
revaluation
and paid up
profit
of plant and
share capita
Balance as on 01
Total
machinery
Rupees
Rupees
Rupees
Rupees
46,845,540
313,452,799
29,752,18
390,050,467
-
24,119,310
-
24,119,310
-
-
-
-
-
24,119,310
-
24,119,310
-
1,487,606
(1,484,606)
-
July 2017
Profit for the year
ended 30 June 2018
Other
comprehensive
income
Total comprehensive
income for the year
Transfer to un
appropriated profit on
account of
60
incremental
depreciation
Balance as at 30
46,845,540
339,059,715
28,264,522
414,169,777
June 2018
Chapter 8:
Competitive and marketing in general:
Critical to success in the construction industry is knowledge of market trends, product
mix shifts, customer needs and effective market strategies. Our continuous networking
with clients, suppliers and competitors creates complete visibility across the whole value
chain of the construction industry and helps our clients make confident business
decisions. We offer a suite of consulting and market research services that empower
our customers to increase market share and profitability.
Marketing is an integral part of our lives. Today to be successful means to be constantly
monitoring market changes and keeping up with the latest trends and technologies.
“The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organisational objectives”. Competition is a situation when alternative firms are able to
provide the same or similar products to satisfy a specific market’s need.
Competitiveness in turn is an ability of a company (or even a product itself) to compete
successfully among others.
There are four basic forms of competition that form a continuum from pure competition
to monopolistic competition to oligopoly to monopoly:
• at one end of the continuum is pure competition, in which every company has a similar
product.
• In the second point of the continuum, monopolistic competition, the many sellers
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Compete with their products on a substitutable basis.
• Oligopoly, a common industry structure, occurs when a few companies control the
Majority of industry sales.
• The final position of the continuum is monopoly, in which there is only one firm
That sells a product.
Specific features of marketing in construction industry:
As mentioned above construction industry is quite specific in its nature. One of the
Specific features of construction is its dependence on the development of global
economy,
Along with political situation since there is a large percentage of state investments.
Moreover it is hard to foresee trends in construction, as the industry is constantly
changing. Such innovations as augmented reality, drones, 3D scanning and printing,
Building
Information Modelling, autonomous equipment and advanced building materials have
Been changing construction industry recently. By adopting and exploiting these
innovations,
Companies boost productivity, streamline their project management and procedures,
and
Enhance quality and safety.
Another important feature is high exposure to risks. Construction companies are
Inevitably exposed to risk. Risks can be internal or external. A construction company is
Bound with financial relationship with an investor and subcontractors. It is important that
Investor pays in time, however a construction company, in turn, has to pay
subcontractors in
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Time to ensure a smooth flow of project works and meeting the deadlines set by the
investor
a construction company, as a general contractor, has to manage quality of products
and services it gets from subcontractors. Concerns for the environment have also
changed the way construction industry is heading for over the last decades. Being
environmentally conscious nowadays is not only a matter of course, but a rather strong
competitive advantage. Concern for the environment is reaching the point where
companies may have no choice but to respond.
There are two basic types of marketing in construction.
The first one is product marketing which is related to production of building materials,
construction machinery, separate built-in units and other products which are, in one way
or another, essential for construction process.
The second type is services marketing where construction companies are trying to get
a contract for project works from the owners. The main focus is therefore placed on a
project since its success is a key to success of the company.
Private sector:
Private sector contracts are driven overwhelmingly by quality, value and deadline for
Which price will be less important until it is agreed - but once agreed, it is normally
Immovable. Private sector clients expect the same attention to quality, value and
deadline,
Supported by the necessary level of service, which they give in turn to their customers.
Marketing tools:
Taking into consideration that the construction industry is extremely complex and
specific, there is no universal marketing tool to apply to market construction services.
Organizational structure of a company, regional factors and other peculiarities might
vary and
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Make it necessary to use different marketing tools. Therefore the only universal
approach is to
Use a combination of methods. The most commonly used marketing tools in
construction are
Presented below.
Porter’s five forces analysis:
Porter’s five forces analysis can be successfully used to evaluate Construction
Company’s performance and provide more accurate results than the SWOT method, for
example. The forces impacting a business in this case are: threat of new entrants,
threat of substitutes, bargaining power of customers, bargaining power of suppliers and
industry rivalry.
1. Rivalry among existing companies:
It is a prime source of competition. The rivalry is the most intense when there are
certain conditions such as:
• Competitors in the industry are roughly evenly balanced
• Periods of low market growth
• Exit barriers being high
• Product differentiation being low
• Fixed costs being relatively high
2. The threat of market entry:
New players can easily enter the market when the following conditions exist:
• Costs of entry are low
• Existing or new distribution channels are open to use
• Little competitive retaliation is anticipated
• Differentiation is low
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• There are gaps in the market
3. The threat of substitutes:
A substitute can come from new entrants or from existing companies deciding to do
Thing in a new way. Substitution can increase competitiveness of an industry for a
number of reasons:
• By making existing technologies redundant
• By incremental product improvement
4. Bargaining power of suppliers:
When suppliers and/or customers have greater power than the members of the industry
competition tends to be more intense. Suppliers tend to have more bargaining power
where
The following hold:
• Suppliers are more concentrated than buyers
• Costs of switching suppliers are high
• Suppliers’ offerings are highly differentiated
5. Bargaining power of buyers:
Buyers tend to be more powerful in the supply chain where the following is true:
• they are more concentrated than sellers
• There are readily available alternative sources of supply
• Buyer switching costs are low
When it comes to using the Porter’s five forces model, a thorough examination is
conducted by a company and the outcome is a detailed understanding of the ways in
which the particular sector behaves and operates. It makes distinct reference to five
specific areas:
• Rivalry: the current nature of competition between those conducting their business
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and competing at present.
• Threat of entry: the potential effects of new players into the sector on existing
activities; the extent and prevalence of potential entrants.
• Substitutes: choices and alternatives that the client base could make away from the
current range of activities; alternative routes to the same destination; extending the
range of choice available to clients.
• Backwards integration (as a part of the bargaining power of customers): in which the
potential for existing players to strengthen their position by buying up sources of supply
and components is examined.
• Forward integration (as a part of the bargaining power of suppliers): in which the ability
of existing players to dominate the means of distribution is considered.
Chapter 9:
SWOT Analysis of Construction Company
Dynamic
The interesting things about construction companies that you won’t see them building
one type of houses, companies, industries, and roads; neither would you see the same
type of construction. The art and construction design of every house, building, mall,
road, or company is different. It is because the construction companies keep on working
different types of projects.
Efficient
Efficiency matters a lot in this industry. If the company and its workers are less efficient,
then it would increase the expense level. In simple words, less efficient means more
expense that would result in less profit and increasing cost.
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Time and efficiency are interdependent variable factors because construction has to
complete the project on a specific date. If the workers aren’t efficient, then it would not
only increase cost and expense, but it would also make it difficult to meet the deadlines.
Follow Deadlines
The timing and deadlines of the projects are very important. It doesn’t mean that you
have to compromise on the quality and safety of the work. It means that you would
follow all the standard operating procedures (SOPs) and finish the project on time.
For instance, if you’re unable to meet the client’s deadlines, then it would result in the
loss of a current client, increasing cost, and ill reputation to the company. The bad
reputation would make it very difficult for the company to attract the next client.
Well-experience Management
The Construction Company is one of those companies where your management skills
are tested. How efficiently you allocate resources among workers, and assign them
different tasks based on their capabilities to get the work done.
That’s why well-established companies pay significantly well to their project managers
because they help them to finish projects on time and win new clients. Poor
management means wastage of human capital and material resources, and failure to
the company.
Variety of Projects
Some industries specialize only in one type of niche or category. In the construction
industry, all the projects are different. The skill and construction material remains the
same, but the design, architect, and planning of every project is different.
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Doesn’t Go Down Easily
Since construction companies partner up with other companies. What if the other
company goes down, then it won’t go down along with it. It is because construction
companies require clients, and there are always clients out there who want construction
companies to finish their projects.
If they run into losses on one project because of some other company, but the
construction company can easily come back in the next project if it performs well and
efficiently uses its resources.
Weaknesses of a Construction Company
Some of the weaknesses of the construction companies are as follows;
Relying on One Client
Some construction companies rely only on one type of client if they keep on doing it.
Then it would be the death of their business. Therefore, it is necessary that you should
expand your horizon and work with various types of clients. You would not only gain
experience through this. If one industry runs out of business, then you can work with
other clients and businesses since you already have experience in it as well.
Limited New Projects
If the construction company is focusing only on the building of houses, then there’s a
limit to it. Soon the market will be flooded with competition and the new project would
become extinct. Your company can’t afford to sit around and wait for the relevant clients
to give you the business. Therefore, you must learn to adopt new trends and work with
new clients and businesses.
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Costly Poor Decision
If the project managers don’t have sufficient experience and skill set, then they would
make poor decisions. That would result in wastage of resources of capital and
resources. Therefore, it is important that you should carefully recruit project managers
who would make smart decisions.
Some companies only rely on the experience of project managers, if they aren’t
experienced, then they won’t promote them. They completely avoid the expertise and
skillset of people, and they don’t get a promotion at the end of the day. It’s necessary
that they should keep in mind the expertise, skill, and experience.
Opportunities for of a Construction Company
Some of the opportunities that the construction companies should use to overcome
weaknesses and threats are as follow;
Separate Staff for New Clients
The construction companies should have a separate marketing department that is
always working to find new clients. Instead, they shouldn’t overburden the admin staff
with marketing and clients’ duties. If they do, the admin staff won’t perform either of their
duties effectively.
Notice Trends
The best way to get work is to adopt changes and follow the trends. For instance, if you
see people moving out to new places and building some new kinds of the architect.
Then you should jump in and offer your services. If you see expansion in your region,
then it’s also a great opportunity to find new clients.
Smart Houses
Technology has brought many new changes almost in every field. Now, people want
smart houses fully equipped with tech gadgets and the internet of things (IoT). If your
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company and staff don’t learn to deal with new changes and technology, then you won’t
get new clients.
Threats to a Construction Company
Some of the external that is out of the control of the company are as follow;
Economic Recession
Companies run their business operation within the country’s economy, and companies
don’t have any control over their country’s economy. If the economy of the country is in
recession and investment in the business is getting lower. Consequently, people and
businesses would stop all of their investment plans. Such factors are out of the reach of
the construction companies.
Economic recession changes the attitude of the people, and they would become
towards spending their money because of the uncertain economy. Perhaps they won’t
find work for the next month, and they may need the money to live. When spending is
lower, then businesses would start shutting down and so are the companies as well
Conclusion:
After studying the swot analysis of a construction company, we have realized that the
construction industry is a very profitable business if the economy of the country is good.
The company should also follow new trends and adapt prevailing tech changes
Recommendations:
Inter valley construction company is prestige institute, As far as I had concluded inter
valley construction company is based on self-monitoring system, if there is any flaw
traced during practice in any department or in any matter the system self-correct the
issue to avoid future inconvenience.
There is quality assurance department which monitor all the activities of company
according to ISO standard, In my opinion inter valley construction company doesn’t
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required any recommendation. As there each department is independent and
reconciles their operations more efficient.
Skill Acquired:
I have following skills acquire during internship period

Official etiquettes

Computer operating system

Verbal and written communication

Interpersonal skills

Punching

Printing

Filling

Billing

Data arranging

Photocopy
Chapter 10:
Letter of Authorization:
HAILEY COLLEGE OF COMMERCE
University of the Punjab, Quaid-e-Azam Campus, Lahore-54590 (Pakistan)
Ph: 99231273, 99230325, 99230327 Fax: 99231274
E-mail: Principal.hcc@pu.edu.pk
Ref. No. D/
184
D/136/HCC
The Manager
/HCC
Date: 07-07-2020
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IVVC ENGINEERING (PVT) LTD.
FB-4,3rd Floor Awami Complex Usman Block
New Garden Town Lahore
B.COM. (HONS) /M. COM. INTERNSHIP
Dear Sir,
We are sending Mr./Miss KhushBakht Shahzad Roll No. BC17-418 is a bonafide
student of B. Com. (Hons) session: (2017-2021) for Internship in your esteemed
organization for a period of 6-8 weeks. This internship program is scheduled to start with
effect from July - August 2020
We shall be further obliged if you could send us a report on his/her attitude
behaviour and attendance at the end of Internship period.
Signature of Student
faithfully
Your
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Chapter 11:
Bibliography:
Website: www.ivcclhr.com
Email: ivcclhr@gmail.com
Phones: (92)-(42) 35881900- 04
Fax: (92)-(42) 35881906-07
Annual Financial Report 2019
Annual Financial Report 2018