AUGEST 2016

INTERNSHIP TRAINING REPORT

Entitled

FOREIGN MARKET ENTRY AND GROWTH

Done at
eNova Technologies, USA

Submitted by
1

RAMAR . K

711915631085

Under the Supervision of

Mrs. SHINY., MBA.,
DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE
This is to certify that the Internship Training Report entitled FOREIGN MARKET
ENTRY AND GROWTH at eNova Technologies, USA submitted to the Anna University
of Technology ,Chennai is a record of original work done by RAMAR . K(711915631085)
during the period of JUNE JULY 2016 under my supervision and guidance of
MRS.SHINY .MBA. and the report has not formed the basis for the award of any
Degree/Diploma/Associate ship/Fellowship or other similar title to any candidate of any
University.

Signature of the Guide

Signature of the Director/Principal

DECLARATION

I, RAMAR . K (711915631085)hereby declare that the Internship Training Report,

entitled FOREIGN MARKET ENTRY AND GROWTH , at eNova Technologies, USA
submitted to the Anna University of Technology,

Chennai is a record of original and

independent work done by me during JUNE - JULY 2016 under the Supervision and
guidance of Mrs.SHINY , MBA, and it has not formed the basis for the award of any
Degree/Diploma/Associate ship/Fellowship or other similar title to any candidate of any
University.

Date:
Candidate

Signature of the

Place:

ACKNOWLEDGEMENT

An endeavor over a long period can be successful only with the advice and support
from many well-wishers. Words are inadequate to express my profound and deep sense of
gratitude to those who helped me for bringing out this project successfully.

I express my sincere thanks to Mr. C.KUMAR, B.E., MBA.,PMP., CISM.,PhD.,

Managing Trustee, of KV Charitable trust, for all the encouragement given to me to
complete this project work.

I express my sincere thanks to Dr. V.S.VELUSWAMY, M.Sc., M.Phil.,

PhD.,Chairman, of KV Institute of management and information studies, for all the
encouragement given to me to complete this project work.

I owe a great deal of gratitude to Dr. M.VIDHYA, M.Com, MBA., M.Phil., Ph.D.,
Director Academy in the department of management studies for all the facilities to complete
my project successfully.

I am much indebted to Mrs.SHINY , MBA.,Assistant Professor in the department of

management studies under whose guidance and efforts, I have successfully completed my
project work.

I am indebted to MY PARENTS, FAMILY MEMBERS & FRIENDS for their love,

encouragement, care and consideration. But for them, I would not have been what I am today.

ABSTRACT

The project entitled Foreign Market Entry and Growth is done at eNova
Technologies, USA. This company provides students three industries (C80607, C80608 and
C80609) which have six equivalent companies (Andrews, Baldwin, Chester, Digby, Erie and
Ferris) that manufacture sensors for public. This is a business simulation environment where
we are segregated into teams and run the company similar to real world. Each member of a
team heads different departments (R&D, Marketing, Production, Finance, HR and TQM) of
the company and have to compete with other five companies present in the same industry. It
has eight years of run which starts equally among competitors but when year passes as
rounds, growth of the organization differs according to the strategic decisions of the teams.
Finally at the end of eighth year, all the teams have to present their companys position in
front of Board Members, eNova Technologies. If they are interested in any companys
performance then they will buy the company back.
5

In this project, I took responsibility in heading Human Resource department, Erie

under the industry C80608. I have other Board Members with me, heading various
departments with sound knowledge on that field. I successfully engaged in development of
Andrews for all the eight years which gave more practical learning for me while running a
company.
An overview of all the departments is given and a detailed study is done on Human
Resource department. The description about positioning and strategy is also given.

CHAPTER

DESCRIPTION

INTRODUCTION

COMPANY PROFILE

ORGANIZATION CHART

PAGE NO

DEPARTMENTS IN THE INDUSTRY-OVERVIEW

4.1 RESERCH&DEVELOPMENT
4.2 MARKETING
4.3 PRODUCTION
4.4 FINANCE
4.5 HUMAN RESOURCE MANAGEMENT
4.6 TOTAL QUALITY MANAGEMENT

FINANCIAL ANALYSE

CONCLUSION

APPENDIX
- RESULTS SCREENSHOTS

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
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

eNova

C80607

C80608

Andrews

Baldwin

Chester

TQM

R&D

Productio
n

C80609

Digby

Finance

Erie

HR

Ferris

Marketing

4. DEPARTMENTS IN THE INDUSTRY OVERVIEW

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.
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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 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.

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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.

12

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

The
materials,

Processes

and methods employed in transformation of tangible inputs (raw

semi-finished goods,

or subassemblies)

(ideas, information, know how) into goods or services.

13

and intangible inputs

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 and the markets.

14

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.
15

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.
16

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

17

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.
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.

18

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.

19

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.
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

20

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.
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.
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

21

2035
2030
2025
2020

2.00

2.30

2.40

2.10 1.70

1.50

1.40

1.40

leverage
year

2015
2010
2005
1

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
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.

22

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.
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.
interests.

The outsiders who use the accounting information have a variety of

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
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.
23

The basic purpose of preparing financial statement is to convey owners, credit and
investors about financial position of the enterprise.

cumulative profit
1
5202188 11377412
64373658
11321693
16515553
31529820

2
3
4
5
6
7

55403721

48351173

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.

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 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.
24

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
Interim and not final report.
Lack of precision and definiteness.
Lack of objective judgment.
Record only monitory terms.
Historical in nature.
Artificial vies.

5.3 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 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.

25

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 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

26

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.

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.

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.

27

APPENDIX

ROUND-1

28

ROUND -2

29

30

31

ROUND -3

32

ROUND -4

33

34

ROUND -5

35

ROUND - 6

36

37

ROUND 7

38

ROUND -8

39

40