1.

INTRODUCTION

The summer internship training was carried in the eNova technologies, Coimbatore. It
involves the four main functional areas of an organization Research and Development (R&D),
Marketing, Production and Finance. The two additional areas are Human Resource (HR) and
Total Quality Management (TQM). The summer internship training was made on the production
department.
Production is a processes and methods employed in transformation of tangible inputs and
intangible inputs into goods or services. Production is the functional area responsible for turning
inputs into finished outputs through a series of production processes. The production department
manages the production schedule of five products initially. As the year goes, the production
department also manages the newly introduced product in the market.
The production department involves in the buy/sell capacity and the automation rating of
the companys products in the market. The increase in the production schedule, products
capacity and the automation rating are based upon the products demand in the market place.
The unit sales forecast was made in the production department as recommended by the
marketing department.
The companys bottom-line depends upon the effective and efficient functioning of all the
departments such as Research and Development (R&D), Marketing, Production and Finance,
Human Resource (HR) and Total Quality Management (TQM). The Human Resource and Total
Quality Management are maintained under the department of Logistics.

2. COMPANY PROFILE
1

eNova Technologies is an IT services company focused on providing value-driven

solutions to its global client, based on its thorough understanding and knowledge of the emerging
technology domains like Web Development, Wireless and Wi-Fi. We have more than 5 years of
experience in providing technology services to customers. Our vision is to help businesses excel
in the Internet & Mobile Age. We aim to provide our clients with innovative, cost-effective
solutions without ever compromising on quality. eNova has assisted a lot of customers in the
United States and has the resources required to assist organizations in all project situations.
eNova Technologies is a talented interactive web & multimedia design studio founded by
a group of experienced professionals. Our company specializes in digital interactive design for
high-profile companies and individuals. We design and develop projects that ultimately are seen
on computers - websites, intranet sites, CD-ROMs or laptop presentations. We specialize in Web
Design, Multimedia Design and Identity Design. We are based in United States, India.

Quality Policy
eNova Technologies follow the principles of Total Quality Management be seeking to satisfy the
external customer with quality software services and to continuously improve processes by working
smarter and using special quality methods.

Customer Satisfaction
eNova Technologies seeks to satisfy the customer by providing them value for what they buy and
the quality they expect will get more repeat business, referral business, and reduced complaints and
service expenses.

Continuous improvement
eNova Technologies thrives hard to stay ahead of the curve to meet customers demands and help
them achieve their goals.

3. ORGANIZATION CHART
2

eNova

C72257

Andrews

Finance

Baldwin

R&D

C72259

C72258

Chester

Digby

Erie

Productio
n

TQM

HR

4. DEPARTMENTS IN THE INDUSTRY OVERVIEW

Ferris

Marketing

4.1 RESEARCH AND DEVELOPMENT

Discovering new knowledge about the products, processes, and services where applying that
knowledge to create efficient and improved products, processes and services that may fulfill the needs of
the market.
The work of research and development involves developing new products and improvements to
current products are needed to meet the requirements of customers, taking into consideration changes in
consumer demand, seasonal sales changes and the availability of new materials and technology. The
marketing department collects information about changes in consumer demand and the requirement of
customers. The research and development department must also be aware of new materials, technology
and products that affect the customers requirements and possibly the future of their customers needs.

New technology can also allow a company to manufacture a product more efficiently to
meet consumer needs and demand. Research is also vital as it provides information for the
development of products.
Also research and development can be split into sub functions, two of which are product
research and development.
Research and development is very expensive and can be very time consuming for many
businesses to be seeing positive results from it, even though this can be the case most of the time
most business invest greatly in research and development.
Research and development also allows better products to be produced but at the same
price for making them, so meaning the company can raise prices for that product. Research and
development also has its risk.

Even though research and development has been carried out to its fullest there is no
guarantee that the strategy they have produced will work, meaning money can go to waste from
4

providing money for that research and development project and wasted end products. This may
be due to consumer needs changing all the time or just the industry is adapting to quickly for that
business.
For every business research and development is a vital factor to its success or failure and
also successfully implementing research, which they have gathered into their products to ensure
that they have produced the best products available.
R&D is responsible for inventing new sensors and re-engineering old ones. R&D determines each
sensors physical characteristics:

Size (The sensors dimensions; there is a trend towards miniaturization.)

Performance (The sensors speed and sensitivity; there is a trend towards improvement)
MTBF (Mean Time Before Failure; the sensors expected life span, measured in hours)

4.2 MARKETING

Marketing is defined by the American Marketing Association (AMA) as "the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large."

Marketing is the process by which companies create customer interest in products or

services. It generates the strategy that underlies sales techniques, business communication, and
business development. It is an integrated process through which companies build strong
customer relationships and create value for their customers and for themselves.
Marketing is used to identify the customer, to keep the customer, and to satisfy the
customer. With the customer as the focus of its activities, it can be concluded that marketing
management is one of the major components of business management. Marketing evolved to
meet the stasis in developing new markets caused by mature markets and overcapacities in the
last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus
from production to the perceived needs and wants of their customers as the means of
staying profitable.
The term marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions. It
proposes that in order to satisfy its organizational objectives, an organization should anticipate
the needs and wants of consumers and satisfy these more effectively than competitors.
For each sensor model, the Marketing Department sets a:

Price
Promotion Budget (Promotion budgets create awareness; 100% awareness means every
customer knows about the sensor)
Sales Budget (Sales budgets build accessibility via salespeople and distribution systems;
100% accessibility means every customer can easily interact with the company)
Sales Forecast(Forecasts are used by Production and Finance)

4.3 PRODUCTION
6

The Processes and methods employed in transformation of tangible inputs (raw materials,
semi-finished goods, or subassemblies) and intangible inputs (ideas, information, know how)
into goods or services.
Product management is an organizational lifecycle function within a company dealing
with the planning or forecasting or marketing of a product or products at all stages of the product
lifecycle.
Product management (inbound focused) and product marketing (outbound focused) are
different yet complementary efforts with the objective of maximizing sales revenues, market
share, and profit margins. The role of product management spans many activities from strategic
to tactical and varies based on the organizational structure of the company. Product management
can be a function separate on its own and a member of marketing or engineering.
While involved with the entire product lifecycle, product management's main focus is to
drive new product development. According to the Product Development and Management
Association (PDMA), superior and differentiated new products ones that deliver unique
benefits and superior value to the customer is the number one driver of success and product
profitability.

For each sensor, the Production Department sets as

Schedules the number of sensors to manufacture based on Marketings sales forecasts,

while also considering unsold units from the previous year (inventory)
Changes capacity and automation on existing assembly lines.
Adds assembly lines to manufacture new sensors.

4.4 FINANCE
A branch of economics concerned with resource allocation as well as resource management,
acquisition and investment. Simply, finance deals with matters related to money andthemarkets.

The finance department of a business takes responsibility for organizing the financial and
accounting affairs including the preparation and presentation of appropriate accounts, and the
provision of financial information for managers.
1. Book keeping procedures:
Keeping records made by the purchases and sales of the business as well
as capital spending. These records today are typically kept on computer files. But still the ledger
entries are used to refer to the days when all financial transactions were carefully recorded in the
books (ledgers).
2. Creating a balance sheet and profit and loss account:
Financial statements need to be produced at given time intervals, for example at the end
of each financial year. Trial balances are extracted from the ledger entries to create a Balance
Sheet showing the assets and liabilities of a business at the year end. In addition, records of
purchases and sales are totaled up to create a Profit and Loss (P&L) account.
3. Providing management information:
Managers require ongoing financial information to enable them to make better decisions.
They want information about how much it costs to produce a particular product or service, in
order to assess how much to produce and whether it might be more worthwhile to switch to
making an alternative product.

4. Management of wages:
The wages section of the finance department will be responsible for calculating the wages
and salaries of employees and organizing the collection of income tax and national insurance for
the Inland Revenue.
5. Raising of finance:
The finance department will also be responsible for the technical details of how a
business raises finance e.g. through loans, and the repayment of interest on that finance. In
addition it will supervise the payment of dividends to shareholders.
Finance Department makes sure all company activities are funded. While it is possible to fund
activities entirely from operations, it is unlikely to happen in the early years. The company will need to
turn to the capital markets.
The company has three outside sources of money:

Stock Issues
Current Debt (These are one year bank notes.)
Bonds (These are 10 year notes.)
Other Finance Department activities include:

Issuing Dividends (Reduces retained earnings and increases leverage.)

Retiring Stock (The company can buy back stock to reduce shares outstanding.)
Retiring Bonds (The company can retire bonds before they come due.)
Determining accounts payable and accounts receivable policies

4.5 HUMAN RESOURCE MANAGEMENT

It resides in the knowledge, skills, and motivation of people, is the least mobile of the
four factors of production, and (under right conditions) learns and grows better with age
and experience which no other resource can.
Human resources is a term used to describe the individuals who comprise the workforce
of an organization, although it is also applied in labor economics to, for example, business
sectors or even whole nations. Human resources is also the name of the function within an
organization charged with the overall responsibility for implementing strategies and policies
relating to the management of individuals (i.e. the human resources).
The forward thinking human resource department is devoted to providing effective
policies, procedures, and people-friendly guidelines and support within companies. Additionally,
the human resource function serves to make sure that the company mission, vision, values or
guiding principles, the company metrics, and the factors that keep the company guided toward
success are optimized.

When the Human Resources Module is activated, three areas must be addressed:
Compliment
Caliber
Training

10

4.6 TOTAL QUALITY MANAGEMENT

Quality Management (or TQM) is a management concept coined by W. Edwards
Deming. The basis of Total Quality Management is to reduce the errors produced during the
manufacturing or service process, increase customer satisfaction, streamline supply chain
management, aim for modernization of equipment and ensure workers have the highest level of
training. One of the principal aims of Total Quality Management is to limit errors to 1 per 1
million units produced. Total Quality Management is often associated with the development,
deployment, and maintenance of organizational systems that are required for various business
processes.
It is based on a strategic approach that focuses on maintaining existing quality standards
as well as making incremental quality improvements. It can also be described as a cultural
initiative as the focus is on establishing a culture of collaboration among various functional
departments within an organization for improving overall quality.
Comparison to Six Sigma
In comparison, Six Sigma is more than just a process improvement program as it is based
on concepts that focus on continuous quality improvements for achieving near perfection by
restricting the number of possible defects to less than 3.4 defects per million. It is
complementary to Statistical Process Control (SPC), which uses statistical methods for
monitoring and controlling business processes. Although both Statistical Process Control and
Total Quality Management help in improving quality, they often reach a stage after which no
further quality improvements can be made. Six Sigma, on the other hand, is different as it
focuses on taking quality improvement processes to the next level.
11

The basic difference between Six Sigma and Total Quality Management is the approach.
While Total Quality Management views quality as conformance to internal requirements, Six
Sigma focuses on improving quality by reducing the number of defects. The end result may be
the same in both the concepts (i.e. producing better quality products). Six Sigma helps
organizations in reducing operational costs by focusing on defect reduction, cycle time reduction,
and cost savings. It is different from conventional cost cutting measures that may reduce value
and quality. It focuses on identifying and eliminating costs that provide no value to customers
such as costs incurred due to waste.
Total Quality Management initiatives focus on improving individual operations within
unrelated business processes whereas Six Sigma programs focus on improving all the operations
within a single business process. Six Sigma projects require the skills of professionals that are
certified as black belts whereas Total Quality Management initiatives are usually a part-time
activity that can be managed by non-dedicated managers.
Applications Where Six Sigma Is Better: Six Sigma initiatives are based on a
preplanned project charter that outlines the scale of a project, financial targets, anticipated
benefits and milestones. In comparison, organizations that have implemented Total Quality
Management, work without fully knowing what the financial gains might be. Six Sigma is based
on DMAIC (Define-Measure-Analyze-Improve-Control) that helps in making precise
measurements, identifying exact problems, and providing solutions that can be measured.

12

5. FINANCIAL DEPARTMENT
Accounting may be regarded as language of business. It is a language of business that
communicates information of people who have interest in and organization. Managers,
shareholders, investors, employees, creditors, outside parties and the government are the various
people interested in and organization. Managers require information that will help in their
decision-making and control activities. Accounting serves as means, of communicating the
economic information of organization to its users. That is why accounting is rightly called as the
languages of business.
Finance Department is primarily concerned with five issues:
1. Acquiring the capital needed to expand assets, particularly plant and equipment capital can
be acquired through:

Current Debt
Stock Issues
Bond Issues (long Term dept.)
Profits

2. Establishing a dividend policy that maximizes the return to shareholders.

3. Setting accounts payable policy (which is entered on the production spreadsheet) and
accounts receivable policy (which is entered on the marketing spreadsheet).
4. Driving the financial structure of the firm and its relationship between debt and equity.
5. Selecting and monitoring performance measures that support your strategy.

13

CURRENT DEBT
The bank issues current debt in one year notes. The finance area in the spreadsheet
displays the amount of current debt due from the previous year. The company can roll that
debt by simply borrowing the same amount ageing.
There are no brokerage fees for current debt. Interest rates are a function of the debt
level. The more debt you have relative to your assets, the more risk you present to debt holders
and the higher the current debt rates.
Bankers will loan current debt up to about 75% of your accounts receivable (found on
last years balance sheet) and 50% of this years inventory. They estimate your inventory for the
upcoming year by examine last years income statement. Bankers assume your worst case
scenario will leave a three to four month inventory and they will loan you up to 50% of that
amount.
This works out to be about 15% of the combined value of last years total direct labor and
total direct material, which display on the income statement. Because they know your industry
growing, as a final step bankers increase your borrowing limit by 20% to provide you with room
for expansion in inventory and accounts receivable.
Bonds (long term debt)
All bonds are ten year notes. The company pays a 5% brokerage fee for issuing bonds.
The first three digits of the bond the series number reflect the interest rate. The last four digits
indicate the year in which the bond is due. The number is separated by the letter S which stands
for series. For example, a bond with the number 12.6s2011 has an interest rate of 12.6% and is
due December 31, 2011.
Bound holders will lend total amounts up to 80% of the value of your plant and
equipment (the production Departments capacity and automation). Each bond issue pays a
coupon, the annual interest payment, to investors.
14

If the face amount or principal of bond 12.6S2011 were $1,000,000 then the holder of the
bond would receive a payment of $126,000 every year ford ten years the holder would also
receive the $1,000,000 principal at the end of the tenth year.
Each year your company is given a credit rating that ranges from AAA (best) to d(worst).
Here the ratings are evaluated by comparing current debt interest rates with the prime rate.
When issuing new bonds, the interest rate will be 1.4% over the current debt interest
rates. If your current debt interest rate were 12.1% then the bond rate would be 13.5%.
You can buy back outstanding bonds before their due date. A 1.5% brokerage fee applies.
These bonds are repurchased at their market value or street price on January 1 of the current
year.
LEVERAGE
18
16
14
12
10
8
6
4
2
0

2.1
1
1

2.1

2
2

2.0

3
3

2.0

4
4

1.7

1.7

1.7

1.6

LEVERAGE
YEAR

The street price is determined by the amount of interest the bond pays and your credit
worthies. It is therefore different from the face amount of the bond. If you buy back bonds
with a street price that is less than its face amount, you make a gain on the repurchase. This
will be reflected as a negative write-off on the income statement.
Bonds are retired in the order the order they were issued. The oldest bonds retire first.
There are no brokerage fees for bonds that are allowed to mature to their due, your banker
lends you current debt to pay off the bond principal. This, in effect, converts the bond to

15

current debt. This amount is combined with any other current debt due at the beginning of the
next year.
Stock
Stock issue transactions take place at the current market price. Your company pays a 5%
brokerage fee for issuing stock. New stock issues are limited to 20% of your companys
outstanding shares in that year.
Stock price is driven by blood value, the last two years earnings per share (EPS) and the
last two years annual dividend. Book value is equity divided by shares outstanding. Equity
equals the common stock and retained earnings values listed on the balance sheet.
Shares outstanding are the number of shares that have been issued. For example, if equity
is $50,000,000 and there are 2,000,000 shares outstanding, book value is $25.00 per share.
EPS is calculated by dividing net profit by shares outstanding.
The dividend is the amount of money paid per share to stockholders each year.
Stockholders do not respond to dividends beyond the EPS; they consider them unsustainable.
For example, if your EPS is $1.50 per share, and your dividend is $2.00 per share,
stockholders would ignore anything above $1.50 per share as a driver of stock price. In
general dividends gave little effect upon stock price.

MARKET SHARE
8

23.68%

19.56%

21.71%

23.70%

22.99%

22.82%

23.68%

21.39%

16

Emergency loan
Emergency loans depress stock prices, k even when you are profitable. Stockholders take
a dim view of your performance when they witness a liquidity crisis. Emergency loans are
combined with any current debt from last year.
The total amount displays in the Due This Year cell under Current Debt. Emergency loans are
often encountered when last years sales forecasts were higher than actual sales or when the
finance Department fails to raise funds needed for expenditures lied capacity and automation
purchase.
Accounting can be broadly classified into three (i) Financial Accounting; (ii) Cost
Accounting (iii) Management Accounting.
5.1 FINANCIAL ACCOUNTING
Financial accounting is concerned with financial information for users outside the
organization.

It is concerned with the provision of information to parties outside the

organization. The outsiders who use the accounting information have a variety of interests.
Investors and shareholders want to know the companys profit potential suppliers, banks and
other lenders want to know whether a business is credit worthy. Govt. agencies regulate the
business and analyze the published financial statements to make decisions.
Financial accounting is concerned with recording and summarizing financial transactions
and preparing statements relating to the business according generally accounting is the basis of
external reporting by financial statements.
5.2 FINANCIAL STATEMENT
The financial products are end products of financial accounting. They are statements

17

containing financial information of a business enterprise. They are summarized periodical

reports of financial and operative data contained in the books of account known as general
ledger. Financial statement may be defined as the statements Containing summaries of detailed
information about the financial position and performance of an enterprise.
The basic purpose of preparing financial statement is to convey owners, credit and
investors about financial position of the enterprise.

CUMULATIVE PROFIT
250000000
200,985,042

200000000

YEAR
135,617,507

150000000
100000000
50000000

CUMULATIVE PROFIT

71,375,992

28,626,917

12,229,293

23,872,588

4
42,662,339

6
105,319,610

OBJECTIVES OF FINANCIAL STATEMENTS

To judge the financial position of the enterprise.

To estimate the earning capacity of the enterprise.
To determine the debt capacity of the concern.
To decide about the prospects of the business.

The ultimate objective of financial is to get better insight about the financial strengths and
weakness of the firm.
IMPORTANCE OF FINANCIAL STATEMENT
The information given in the financial statements are very use full to a number of parties
as given below.

Owners: The owners provide funds for the operations of a business and they want to know
whether their funds for the operations of a business and they want to know whether their
18

funds are being properly utilized or not. The financial statements prepared from time to tome

their curiosity.
Creditors: Creditors want to know the financial position of a concern before giving loans or

granting credit. The financial statements help them in judging such position.
Investors: prospective investors, who want to invest money in a firm, would like to make an
analysis of the financial statement of that form to know how safe the proposed investment

will be.
Employees: Employees are interested in the financial position of a concern they serve,
particularly when payment of bonus depends up the size of the profit earned. They would
like to know their bonus being paid to them is correct; so they become interested in the

preparation of profit and loss account.

Government: Central and state Governments are interested in the financial statements

because they reflect the earnings for a particular period for purposed of taxation.
Research scholars: The financial statements, being a mirror of the financial position of firm,
are of immense value to the research scholars who wants do make a study in to financial

operations of a particular firm.

Consumers: Consumers are interested In the establishment of good accounting control so
that cost of production may be reduced with the resultant reduction of the prices of goods the
buy.

LIMITATION OF FINANCIAL STATEMENTS

5.3

Interim and not final report.

Lack of precision and definiteness.
Lack of objective judgment.
Record only monitory terms.
Historical in nature.
Artificial vies.

MEANING

OF

ANALYSIS

AND

INTRERPRETATION

OF

FINANCIAL

STATEMENTS
Analysis is the process of critically examining in detail accounting information given in
the financial statements. For the purpose of analysis, individual item are studied, their inter
relationships with other related figures established, the data is sometimes rearranged to have

19

better understanding of the information with the help of different techniques or tools. Analyzing
financial statements is a process of evaluating relationship between component parts of financial
statements to obtain better understanding of firms position and performance.
Interpretation is the process of drawing inference and stating what the figures in the
financial statements really mean. Interpretation is dependent on interpreter himself. Interpreter
must have experience, understanding and intelligence to draw correct conclusions from the
analyzed data.
The most important objective of the analysis and interpretation of financial statements are
to understand the significance and meaning of financial statements data to know the strength and
weakness of a business undertaking so that a forecast may be made on the future prospects of
that business undertaking.
5.4 TYPES OF FINANCIAL STATEMENT ANALYSIS
Different type of financial statement analysis can be made on the basis of :

The nature of analyst and actual material used by him.

The objective of the analysis.
The modus operandi of the analysis.

According to nature of analyst and materials used by him. On this basis, of the financial
analyses are;

External analysis

It is made by those persons who are not connected with the enterprise. They do not have access
to the enterprise. They do not have access to the detailed record of the company and have to
depend mostly on published statements. Investors, credit agencies, governmental agencies and
research scholars make such type analysis.

Internal analysis
The internal analysis is made by those persons who have access to the books of accounts. They
are the members of the organization. Analysis of financial statements or other financial data for

20

managerial purpose is the internal type of analysis. The internal analysis can give more reliable
result than external analyst because every type of information is at his disposal.
Accounting to the objectives of the analysis:
Long-term Analysis: This analysis is made in order to study the long term financial
stability, solvency and liquidity as well as profitability and earning capacity of a business
concern. This type analysis helps the long-term financial planning which is essential for the
continued success of a business.
Short-term Analysis: this is made to determine the short-term solvency stability and liquidity as
well as earring capacity of the business. This analysis is made with reference to items of current
assets and current position, which may be helpful for short-term financial planning and long term
planning.
According to the modus operandi of the analysis:
Horizontal (Dynamic) Analysis: This analysis is made to review and analyze financial
statements for a number of years and therefore based on financial data taken from several years.
This is very useful for long term analysis and planning.
Vertical (Static) Analysis: This analysis is made to review and analyze the financial
statements for a particular year only. Ratio analysis of a particular accounting year is an example
of this type of analysis.

6. CONCLUSION
It is hard to understand something without direct experience and through this internship training
program. I can able to gain knowledge about the functional departments in a company. Each department
plays a major role in increasing the companys performance in the market. These all departments are
needed in a different way in order to achieve the business objectives in most effective and efficient
manner.
21

The finance department is the main source of any organization. The initial stage of the
business starts from the capital that we invest into the business. So the finance plays the vital role
in any type of business. Finance department is the backbone of the industry. It supplies funds to
all other departments is the organization. It may get the funds by issuing shares & bonds, and by
getting the debts.

APPENDIX
ROUND-1

22

23

24

ROUND-2

25

26

ROUND-3

27

28

ROUND-4

29

30

ROUND-5

31

32

ROUND-6

33

34

ROUND-7

35

36

ROUND-8

37

38