How are the ECC test cases generated?

How are the ECC test cases generated?

When KTern is connected to a system, the Platform first looks into the process involved, further moving towards the application components, the master tables & the customizing tables.
KTern researches on the data given and tells the lines of business involved, the scenarios involved in the line of businesses, process involved in the businesses, the utilization of the processes by the business end users and check based on updation and creation of the processes. These all are in terms of API.