Tata Steel Finance Manager Interview Questions and Answers

IND AS 109 is a financial reporting standard that deals with the accounting for financial instruments.

• IND AS 109 is based on the International Financial Reporting Standards (IFRS) 9.

• It covers the classification, measurement, and recognition of financial assets and liabilities.

• It requires entities to measure financial instruments at fair value, with changes in fair value recognized in profit or loss.

• It also introduces n...read more

To close month end, review financial transactions, reconcile accounts, prepare financial statements, and analyze variances.

• Review all financial transactions for accuracy and completeness

• Reconcile accounts to ensure all transactions are accounted for

• Prepare financial statements such as income statement, balance sheet, and cash flow statement

• Analyze variances between actual and budgeted amounts to identify any discrepanc...read more

Key financial ratios for liquidity include current ratio, quick ratio, and cash ratio.

• Current ratio: measures a company's ability to pay off short-term liabilities with its current assets

• Quick ratio: similar to current ratio but excludes inventory from current assets

• Cash ratio: measures a company's ability to cover short-term liabilities with cash and cash equivalents

Working capital is crucial for steel companies to manage day-to-day operations, including purchasing raw materials and paying suppliers.

• Working capital is the difference between current assets and current liabilities.

• Steel companies need sufficient working capital to fund operations and maintain liquidity.

• Factors affecting working capital in steel industry include raw material prices, demand fluctuations, and productio...read more

Buyer credit is credit extended to the buyer by a financial institution, while supplier credit is credit extended to the buyer by the supplier.

• Buyer credit involves a financial institution providing credit to the buyer to make a purchase, while supplier credit involves the supplier offering credit terms to the buyer.

• Buyer credit typically involves lower interest rates compared to supplier credit.

• Buyer credit may involv...read more

LC or BG stands for Letter of Credit or Bank Guarantee, commonly used in international trade to ensure payment or performance.

• LC is a financial document issued by a bank to guarantee payment to a seller upon presentation of documents confirming shipment of goods.

• BG is a promise from a bank to cover a buyer's payment to a seller if the buyer fails to fulfill the terms of a contract.

• Both LC and BG provide security for tr...read more