CareEdge Ratings Interview Questions, Process, and Tips

Q1. Questions are asked around basic rating process and 1-2 industries of interviewee's choice
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Q2. Questions are asked around financial ratios
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About financial analysis and credit analysis

Q1. Financial statements analysis and ratio analysis
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Q1. Ratios, Ind as 115, 113, 116, dcf valuation, analtical questions
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Q1. Economics, financial management related questions
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Q1. Basic questions family background
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Q1. Ind AS, COMPANIES ACT 2013
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Q1. Ratios, Financial analysis
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Aptitude test consisting of questions on financial ratios, costing, English grammar and some questions on Industry.

Q1. Personal questions, questions based on articleship experience, financial ratios and current affairs
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Q2. Go through your CV
Ans. 
I have experience in credit analysis and rating, with a strong background in financial analysis and risk assessment.
• Bachelor's degree in Finance with a focus on credit analysis

• Worked as a Credit Analyst at XYZ Bank for 2 years

• Conducted thorough financial statement analysis to assess creditworthiness

• Evaluated industry trends and market conditions to determine credit ratings

• Presented findings and recommendations to senio...read more
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Q3. What would you consider while rating any company?
Ans. 
When rating a company, various factors are considered such as financial performance, industry outlook, management quality, and competitive position.
• Financial performance including profitability, liquidity, and leverage ratios

• Industry outlook and market conditions

• Management quality and track record

• Competitive position and market share

• Business strategy and diversification

• Corporate governance and transparency

• Macroeconomic...read more
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Q4. How to do stock audit?
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Stock audit involves verifying and validating the physical existence and accuracy of stock holdings.
• Conduct a physical count of stock items to ensure they match the recorded quantities.

• Compare the physical count with the stock records to identify any discrepancies.

• Inspect the condition and quality of the stock items.

• Review the stock valuation methods and ensure they are applied correctly.

• Check for proper documentation ...read more
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Q5. What is current ratio?
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Current ratio is a financial metric that measures a company's ability to pay its short-term liabilities with its short-term assets.
• Current ratio is calculated by dividing a company's current assets by its current liabilities.

• A higher current ratio indicates a better ability to cover short-term obligations.

• For example, if a company has $100,000 in current assets and $50,000 in current liabilities, its current ratio woul...read more
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First step is to test your knowledge about basic finance, english and writing skills.

Q1. Second round is to test your technical knowledge about the industry, sector and other finance aspects.
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Q2. Brief on industry that you worked upon, all the financial ratios and risk that a business might have
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Q3. Brief on industry risk
Ans. 
Industry risk refers to potential threats and challenges faced by businesses within a specific sector.
• Market volatility can impact profitability

• Regulatory changes may increase compliance costs

• Technological advancements can disrupt traditional business models
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Q4. Brief on various timelines for the rating process and default recognition
Ans. 
Rating process timelines vary based on complexity, while default recognition typically occurs after a missed payment.
• Rating process timelines can range from a few weeks to several months, depending on the complexity of the analysis and the issuer's responsiveness.

• Default recognition usually occurs after a missed payment or breach of contract, triggering a review by credit rating agencies.

• Credit rating agencies may also...read more
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Ratios, quantitative aptitude, GK

Q1. Ratios, important ratios to consider before giving a loan.
Ans. 
Key ratios to consider before giving a loan include debt-to-income ratio, loan-to-value ratio, and credit score.
• Debt-to-Income Ratio: This ratio compares a borrower's monthly debt payments to their gross monthly income. A lower ratio indicates a borrower is less risky.

• Loan-to-Value Ratio: This ratio compares the loan amount to the appraised value of the collateral. A lower ratio indicates a lower risk for the lender.

• Cr...read more
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