This paper investigates the perception of corporate managers regarding employability skills of management students undertaking summer internship with them. The study is divided into two parts wherein the first part consists of literature review and in-depth interviews of senior managers, and it is devoted to identifying critical parameters that affect employability of management students. The second part of research consists of a survey of 195 company supervisors who rated 405 intern students on the 22 items identified in the first part. The results indicate that intern students lacked in communication skills, problem solving ability, analytical skills and business understanding but fared well in the other parameters like self-management, using ICT efficiently, people relations and team spirit, innovative approach and critical thinking, self-confidence and assertiveness and drive to learn.