India Ratings & Research Interview Questions, Process, and Tips

Q1. What is DSCR? What is RoCE?
Ans. 
DSCR stands for Debt Service Coverage Ratio and RoCE stands for Return on Capital Employed.
• DSCR is a financial ratio used to measure a company's ability to pay its debts.

• It is calculated by dividing the company's net operating income by its total debt service.

• A DSCR of 1 or higher indicates that the company is generating enough income to cover its debt obligations.

• RoCE is a financial ratio used to measure a company's e...read more
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Q1. Tell us about credit worthiness What is working capital management
Ans. 
Credit worthiness refers to a borrower's ability to repay a loan. Working capital management is the process of managing a company's short-term assets and liabilities.
• Credit worthiness is determined by factors such as credit score, income, and debt-to-income ratio.

• Lenders use credit worthiness to assess the risk of lending money to a borrower.

• Working capital management involves managing a company's cash, inventory, and ...read more
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Q1. What location? Expected CTC etc
Ans. 
The location and expected CTC will depend on the specific job opening.
• The location will be determined by the company's needs and may vary depending on the job opening.

• The expected CTC will also depend on the job opening and the candidate's qualifications.

• It is best to discuss specific location and salary details during the interview process.
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Q1. Liquidity ratios
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Q1. Fundamental analysis of credit
Ans. 
Fundamental analysis of credit involves evaluating the financial health of a borrower to determine their creditworthiness.
• Assessing the borrower's income, expenses, assets, and liabilities

• Analyzing the borrower's credit history and credit score

• Evaluating the borrower's ability to repay the loan

• Examining the borrower's industry and market trends

• Considering macroeconomic factors that may impact the borrower's ability to ...read more
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Q2. Risk drivers in NBFCs
Ans. 
Risk drivers in NBFCs
• Lack of diversification in loan portfolio

• Dependency on short-term funding sources

• Inadequate risk management practices

• Exposure to external factors such as economic downturns

• Lack of regulatory oversight

• Fraudulent activities by employees or borrowers
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Q3. Approach to rating NBFC which has a manufacturing parent
Ans. 
The approach to rating an NBFC with a manufacturing parent involves analyzing the parent's financial strength and the NBFC's business model.
• Assess the parent company's creditworthiness and financial stability

• Evaluate the NBFC's business model and its relationship with the parent company

• Analyze the NBFC's risk management practices and regulatory compliance

• Consider the industry and market conditions in which the NBFC ope...read more
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Q4. Past work experience
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Credit analysis on one of the NBFCs

Q1. Past experience relevant to current role
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Q2. Same questions in round 2
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Sector Analysis and Presentation

Q1. Cash Flow Statement Explain
Ans. 
Cash Flow Statement is a financial statement that shows the inflow and outflow of cash in a business.
• It shows the sources of cash inflow and the uses of cash outflow.

• It is divided into three sections: operating activities, investing activities, and financing activities.

• It helps in analyzing the liquidity and solvency of a business.

• Example: If a company has a negative cash flow from operating activities, it may indicate...read more
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Q2. Automobile Industry Growth Drivers
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Q1. Interest coverage ratio , leverage ratio and many others
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Q2. Related to financial rations and financial analysis
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