50+ RATHI HYDRO PROJECTS Interview Questions and Answers

Depreciation is the reduction in the value of an asset over time due to wear and tear.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated by dividing the cost of the asset by its useful life.

• Examples of assets that depreciate include vehicles, machinery, and buildings.

• Depreciation can be accelerated or slowed down depending on the method used to calculate it.

• Depreciation is important for tax purposes as it can reduce tax...read more

A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other assets.

• Mutual funds are managed by professional fund managers.

• Investors buy shares in the mutual fund and the value of their investment is determined by the performance of the underlying assets.

• There are different types of mutual funds, including equity funds, bond funds, money market funds, and index funds.

• Equity funds invest in stocks, bond funds inves...read more

Shares refer to the ownership units of a company that are traded on a stock exchange.

• Shares represent a portion of ownership in a company

• They are bought and sold on stock exchanges

• Shareholders are entitled to a portion of the company's profits and voting rights

• Shares can be common or preferred, with different rights and privileges

• Examples of companies with shares include Apple, Amazon, and Microsoft

A mutual fund is a type of investment vehicle made up of a pool of money collected from many investors to invest in securities.

• Mutual funds are managed by professional fund managers.

• Investors buy shares in the mutual fund and the value of their investment is determined by the performance of the underlying securities.

• Mutual funds offer diversification and are a popular choice for individual investors.

• There are different types of mutual funds, including equity funds, bond funds...read more

Financial statements are interrelated as they provide different perspectives on the financial health of a company.

• The income statement shows the company's revenues and expenses, which directly impact the net income on the balance sheet.

• The balance sheet provides a snapshot of the company's assets, liabilities, and equity, which are also reflected in the cash flow statement.

• The cash flow statement shows how changes in the balance sheet and income statement affect cash and cash...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated by dividing the cost of the asset by its useful life.

• Examples of assets that can be depreciated include buildings, vehicles, and equipment.

• Depreciation can be straight-line, accelerated, or based on units of production.

• Depreciation is important for tax purpos...read more

Two important financial ratios are the current ratio and return on equity.

• Current ratio measures a company's ability to pay its short-term obligations with its short-term assets. Formula: Current Ratio = Current Assets / Current Liabilities

• Return on equity (ROE) measures a company's profitability by showing how much profit a company generates with the money shareholders have invested. Formula: ROE = Net Income / Shareholders' Equity

Venture capital is funding provided by investors to startup companies and small businesses that are deemed to have long-term growth potential.

• Venture capital is a type of private equity financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

• Venture capitalists typically take equity in the company in exchange for their investment.

• Venture capital is often used to fund new technologies, expand working capit...read more

GAAP and IFRS are two sets of accounting standards used globally, with GAAP being primarily used in the US and IFRS being used in many other countries.

• GAAP (Generally Accepted Accounting Principles) is the accounting standard used in the United States, while IFRS (International Financial Reporting Standards) is used in many other countries around the world.

• GAAP is more rules-based, with specific guidelines for how to account for different transactions, while IFRS is more prin...read more

Revenue is the total amount of money generated by a business through sales, while income is the profit earned after deducting expenses from revenue.

• Revenue is the total amount of money generated by a business from its normal business activities.

• Income is the profit earned by a business after deducting expenses such as operating costs, taxes, and interest.

• Revenue is the top line of the income statement, while income is the bottom line.

• Example: A company generates $1 million in...read more

Data is a collection of facts, figures, and statistics that can be analyzed to gain insights and make informed decisions.

• Data is raw and unorganized information

• It can be in various forms such as text, numbers, images, audio, video, etc.

• Data can be structured or unstructured

• It is used to gain insights, make informed decisions, and solve problems

• Examples of data include customer information, sales figures, website traffic, social media posts, etc.

Depreciation is the decrease in value of an asset over time. Types include straight-line, double declining balance, and units of production.

• Depreciation is the allocation of the cost of an asset over its useful life.

• Straight-line depreciation evenly spreads the cost of an asset over its useful life.

• Double declining balance depreciation accelerates the depreciation expense in the early years of an asset's life.

• Units of production depreciation is based on the actual usage of th...read more

The financial statements (BS, IS, CF) have common elements such as assets, liabilities, equity, revenue, expenses, and cash flows.

• Assets: resources owned by the company

• Liabilities: obligations owed by the company

• Equity: residual interest in the assets of the company

• Revenue: income generated by the company

• Expenses: costs incurred by the company

• Cash flows: inflows and outflows of cash

A stock split increases the number of shares outstanding and decreases the price per share, but does not affect the market capitalisation.

• Stock split does not affect the total value of the company

• Market capitalisation remains the same after a stock split

• Stock split increases the number of shares outstanding and decreases the price per share

• For example, if a company has 1 million shares outstanding and the stock splits 2-for-1, the company will have 2 million shares outstandin...read more

Private equity invests in established companies while venture capital invests in startups.

• Private equity firms invest in mature companies with a proven track record.

• Venture capital firms invest in startups with high growth potential.

• Private equity firms typically acquire a controlling stake in the company they invest in.

• Venture capital firms usually take a minority stake in the company.

• Private equity firms focus on generating returns through operational improvements and cost-...read more

Annual reports contain more than just financials, such as management discussion and analysis, corporate governance, and sustainability reports.

• Management discussion and analysis provides insights into the company's strategy, operations, and future plans.

• Corporate governance section highlights the company's policies and practices related to ethical conduct, board composition, and executive compensation.

• Sustainability reports showcase the company's efforts towards environmental...read more

WASO is Wake After Sleep Onset, TSO is Total Sleep Time, and EPS is Earnings Per Share.

• WASO is the amount of time spent awake after initially falling asleep.

• TSO is the total amount of time spent sleeping, including both REM and non-REM sleep.

• EPS is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock.

• WASO and TSO are commonly used in sleep studies, while EPS is used in financial analysis.

Amortization is the process of spreading out a loan into smaller, regular payments over a period of time.

• It is used to pay off a debt over time with regular payments

• Each payment includes both principal and interest

• The amount of interest decreases over time as the principal is paid off

• Examples include mortgages, car loans, and student loans

The three financial statements are linked through the flow of information and data between them.

• The income statement shows revenue and expenses for a specific period of time.

• The balance sheet shows the company's assets, liabilities, and equity at a specific point in time.

• The cash flow statement shows the inflow and outflow of cash during a specific period of time.

• Net income from the income statement is used to calculate retained earnings on the balance sheet.

• Changes in cash f...read more

To set up the environment for building an Angular application, you need to install Node.js and Angular CLI.

• Install Node.js and npm

• Install Angular CLI using npm

• Create a new Angular project using CLI

• Run the project using ng serve command

Minority interest/ Non controlling interest refers to the ownership of less than 50% of a company's shares by an investor or group.

• It is also known as non-controlling interest (NCI) or minority equity.

• NCI is reported on the balance sheet as a separate line item.

• It represents the portion of a subsidiary's net assets that are not owned by the parent company.

• NCI is entitled to a share of the subsidiary's profits and losses.

• Example: If Company A owns 80% of Company B, then Compan...read more

Fundamental analysis is a method of evaluating a security by examining its intrinsic value.

• It involves analyzing financial and economic data to determine the underlying value of a security

• The objective is to identify undervalued or overvalued securities

• Factors considered include financial statements, industry trends, management quality, and macroeconomic conditions

• Example: analyzing a company's revenue growth, profit margins, and debt levels to determine its true value

• The goa...read more

EPS is calculated by dividing the company's net income by the number of outstanding shares.

• EPS = Net Income / Outstanding Shares

• Net Income is the company's total earnings after expenses and taxes

• Outstanding Shares are the total number of shares issued by the company

• EPS is an important metric for investors to evaluate a company's profitability

• Higher EPS indicates better profitability and potential for higher dividends

Cash flow statements have three main components: operating activities, investing activities, and financing activities.

• Operating activities: cash inflows and outflows from the company's core business operations.

• Investing activities: cash inflows and outflows from buying or selling long-term assets.

• Financing activities: cash inflows and outflows from borrowing or repaying debt, issuing or buying back stock, and paying dividends.

• Net cash flow: the sum of the cash inflows and out...read more

Enterprise Value is the total value of a company's equity and debt.

• Enterprise Value = Market Capitalization + Total Debt - Cash and Cash Equivalents

• It is used to determine the total value of a company, including its debt

• EV is often used in financial analysis to compare companies with different capital structures

• Example: If a company has a market cap of $100 million, total debt of $50 million, and cash and cash equivalents of $10 million, its EV would be $140 million

Capital market is a financial market where long-term securities are traded.

• Capital market is a market for long-term securities such as stocks, bonds, and mutual funds.

• It is a platform for companies to raise capital by issuing securities.

• Types of capital market include primary market, secondary market, and money market.

• Primary market is where new securities are issued for the first time, while secondary market is where existing securities are traded.

• Money market deals with sho...read more

The strategy to come out of private equity involves identifying potential buyers, preparing the company for sale, and negotiating the terms of the sale.

• Identify potential buyers through market research and networking

• Prepare the company for sale by improving financials, streamlining operations, and addressing any legal or regulatory issues

• Negotiate the terms of the sale, including price, payment structure, and any contingencies

• Consider alternative exit strategies, such as an I...read more

TSO, WASO, and Treasury shares are all related to the number of outstanding shares of a company.

• TSO stands for Total Shares Outstanding and refers to the total number of shares of a company that are currently owned by shareholders.

• WASO stands for Weighted Average Shares Outstanding and is a calculation that takes into account any changes in the number of outstanding shares over a period of time.

• Treasury shares are shares that a company has repurchased and are held in its trea...read more

EPS is earnings per share, while P/E ratio is the price-to-earnings ratio.

• EPS is a company's net profit divided by the number of outstanding shares.

• P/E ratio is the current market price of a share divided by its EPS.

• P/E ratio is used to determine if a stock is overvalued or undervalued.

• A high P/E ratio may indicate that investors have high expectations for future growth.

• A low P/E ratio may indicate that investors have low expectations for future growth.

Angular is a front-end framework that uses HTML, CSS, and JavaScript to build dynamic web applications.

• Angular uses components to create reusable UI elements

• It uses services to share data and functionality across components

• It has a powerful template system that allows for easy data binding and manipulation

• Angular uses RxJS for reactive programming and observables

• It has a built-in router for handling navigation between pages

• Angular applications can be built and deployed as sin...read more

ES6 introduced new features to Javascript including arrow functions, let and const, classes, and template literals.

• Arrow functions provide a concise syntax for writing functions.

• Let and const are block-scoped variables.

• Classes provide a way to create objects with methods and properties.

• Template literals allow for string interpolation and multi-line strings.

• Destructuring allows for easy extraction of values from arrays and objects.

• Spread syntax allows for easy copying and merg...read more

Basic EPS is calculated using only outstanding shares while Diluted EPS takes into account the potential dilution of convertible securities.

• Basic EPS is calculated by dividing the net income by the outstanding shares.

• Diluted EPS takes into account the potential dilution of convertible securities such as stock options, warrants, and convertible bonds.

• Diluted EPS is always lower than Basic EPS because it assumes that all potential dilutive securities are exercised.

• Companies wit...read more

CI/CD pipeline is a process of continuous integration and continuous delivery/deployment of software.

• CI/CD pipeline automates the software delivery process.

• It involves continuous integration of code changes, automated testing, and continuous delivery/deployment of software.

• It helps in reducing errors and improving the quality of software.

• Popular CI/CD tools include Jenkins, Travis CI, and CircleCI.

The three financial statements are prepared by gathering financial data, organizing it into specific formats, and analyzing the results.

• Gather financial data from various sources such as income statements, balance sheets, and cash flow statements.

• Organize the data into specific formats such as revenues, expenses, assets, liabilities, and equity.

• Analyze the results to assess the financial health and performance of the company.

Components in Angular are reusable building blocks that encapsulate HTML, CSS, and TypeScript code.

• Components are the basic building blocks of an Angular application

• They are reusable and can be used across multiple pages

• Each component has its own HTML, CSS, and TypeScript code

• Components can communicate with each other using @Input and @Output decorators

• Examples of components include navbar, footer, and login form

Financial statements include balance sheet, income statement, and cash flow statement.

• Balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• Income statement shows a company's revenue, expenses, and net income over a period of time.

• Cash flow statement shows a company's inflows and outflows of cash over a period of time.

• All three statements are important for analyzing a company's financial health and performance.

P/E ratio is a valuation ratio that compares a company's current share price to its earnings per share (EPS).

• P/E ratio = Market Price per Share / Earnings per Share

• It is used to determine the relative value of a company's shares in an industry

• Different types of P/E ratio include Forward P/E, Trailing P/E, Shiller P/E

• Forward P/E uses estimated future earnings, Trailing P/E uses past earnings, Shiller P/E uses inflation-adjusted earnings over 10 years

Asset backed security is a type of financial security backed by a pool of assets, while CMBS specifically refers to securities backed by commercial real estate loans.

• Asset backed securities are backed by a variety of assets such as credit card receivables, auto loans, or student loans.

• CMBS are specifically backed by commercial real estate loans, such as office buildings, shopping centers, or hotels.

• Asset backed securities are typically more diversified in terms of underlying ...read more

Corporate actions are events initiated by a company that can affect the stock price and shareholder value.

• Types of corporate actions include stock splits, dividends, mergers and acquisitions, spin-offs, and rights issues.

• Corporate actions can be used to reward shareholders, raise capital, or restructure a company.

• Investors need to be aware of corporate actions as they can impact their investment decisions and portfolio performance.

Corporate actions are events initiated by a public company that can affect its stock price or ownership structure.

• Corporate actions include dividends, stock splits, mergers, acquisitions, spin-offs, and rights issues.

• These actions can impact shareholders by changing the value of their investments or the number of shares they own.

• Investors need to stay informed about corporate actions to make informed decisions about their investments.

Capital repayment refers to the process of paying back the original amount borrowed in a loan or investment.

• Capital repayment is the return of the initial amount borrowed or invested.

• It does not include any interest or additional fees.

• Common examples include paying off a mortgage or returning the principal amount of a bond.

• Capital repayment reduces the outstanding balance of a loan or investment.

Dilutive securities are financial instruments that can potentially decrease earnings per share and reduce the ownership percentage of existing shareholders.

• Dilutive securities include stock options, convertible bonds, and warrants.

• When exercised or converted, dilutive securities increase the number of outstanding shares, leading to a dilution of ownership.

• Companies must calculate the impact of dilutive securities on earnings per share to provide accurate financial information...read more

CMBS has more prepayment risk compared to RMBS and ABS.

• CMBS (Commercial Mortgage-Backed Securities) typically have higher prepayment risk due to the nature of commercial real estate loans.

• RMBS (Residential Mortgage-Backed Securities) have lower prepayment risk compared to CMBS as residential mortgages are less likely to prepay.

• ABS (Asset-Backed Securities) generally have lower prepayment risk as the underlying assets may have more stable cash flows.

• Prepayment risk in CMBS can...read more

Optimization techniques are methods used to improve the efficiency and performance of software applications.

• Use of algorithms like dynamic programming and greedy algorithms

• Profiling and performance tuning to identify bottlenecks

• Code refactoring to improve readability and maintainability

• Utilizing caching and memoization for faster access to data

• Parallel processing and multi-threading for improved concurrency

Find duplicates in an ArrayList of strings.

• Iterate through the ArrayList and use a HashSet to keep track of seen elements.

• If an element is already in the HashSet, it is a duplicate.

• Store the duplicates in a separate ArrayList or print them directly.

Bankruptcy is a legal process where a person or business is unable to repay debts, while insolvency refers to a financial state of being unable to pay debts.

• Bankruptcy is a legal status declared by a court when a person or business cannot repay debts.

• Insolvency is a financial state where a person or business is unable to pay debts as they become due.

• Bankruptcy involves a formal legal process, while insolvency is a financial condition.

• Bankruptcy can lead to the liquidation of ...read more

Successfully led a team to deliver a complex project ahead of schedule

• Implemented Scrum framework and facilitated daily stand-up meetings, sprint planning, and retrospectives

• Identified and resolved team conflicts, resulting in improved collaboration and productivity

• Introduced Agile practices to stakeholders, resulting in increased transparency and better alignment with business goals

CMBS are securities backed by commercial mortgages, while RMBS are securities backed by residential mortgages.

• CMBS are backed by commercial properties such as office buildings, shopping centers, and hotels.

• RMBS are backed by residential properties such as single-family homes, condos, and townhouses.

• CMBS tend to have higher loan amounts and lower prepayment rates compared to RMBS.

• RMBS are more sensitive to changes in interest rates and housing market conditions than CMBS.

Bonds are debt securities while equity represents ownership in a company.

• Bonds are issued by companies or governments to raise capital and pay interest to bondholders.

• Equity represents ownership in a company and gives shareholders voting rights and a share of profits.

• Bonds have a fixed interest rate and maturity date while equity does not have a fixed return or maturity.

• Bonds are generally considered less risky than equity as they have a fixed return and priority in case of b...read more

Handled performance appraisals for team members, providing feedback and setting goals.

• Conducted regular performance reviews with team members

• Provided constructive feedback on strengths and areas for improvement

• Set clear goals and expectations for team members

• Documented performance discussions and outcomes

• Collaborated with HR on performance improvement plans if needed

Prepayment risk refers to the risk that borrowers will pay off their loans earlier than expected, resulting in a loss of future interest payments for the lender.

• Prepayment risk is common in mortgage-backed securities, where homeowners can refinance their mortgages at lower interest rates, causing the investor to lose out on expected interest income.

• It can also occur in bonds or other fixed-income securities when interest rates fall, prompting issuers to redeem the bonds early...read more