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Finance:

Tabrez, Shaikh
Tuesday, November 24, 2009 4:32 PM
Slatewala, Mohammed; Vichare, Makarand; Ezekiel, Jonah; Pal, Suresh;
Gada, Amit; Chitta, Nageshwarrao; Nakum, Naresh; Salgaonkar, Pradeep;
Shetty, Prathap; 'Foreveras_1lovers@yahoo.co.in'; Sanganeria, Tarun;
Farooqui, Abdullah; Shah, Sarfaraz; Khan, Faizan; Kazi, Khurshid
Interview Guide
balance sheet.doc.zip; Financial market.pdf.zip; syntel interview
details.doc.zip

What is Fund Accounting?

Fund Accounting is an accounting system often used by nonprofit organizations and by the public
sector. Fund accounting is a method of accounting and presentation whereby assets and liabilities
are grouped according to the purpose for which they are to be used.
What is Capital Market?
Capital Market is a market where difference kinds of financial assets are bought and sold. Financial
assets such as shares, bonds, derivatives, etc.
What is a share?
Share one of a number of titles of ownership in a company. Total equity capital of a company is
divided into equal units of small denominations, each called a share. For example, in a company the
total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of
Rs 10 is called a Share. Thus, the company then is 11 said to have 20,00,000 equity shares of Rs 10
each. The holders of such shares are members of the company and have voting rights.
Types:
cumulative preference share; deferred ordinary share; founders' shares; fully paid share; partly paid
share; preferred ordinary share; redeemable shares; subscription shares; term shares
Difference between Equity share and Preference shares?
In Equity Shares the dividend will be paid only if the company makes a profit and it declares a
dividend. Equity Shareholder is the owner of the company to the extent of his share value.
Preference Shares is a share that has a right on the dividend. Preference Shareholder get their
amount first even if the company goes in the liquidation. In preference shares shareholder do not
have ownerships right in the company.
What is the difference between interest and dividend?
In primary market new issues are distributed to the investors, and in Secondary market the existing
securities are traded. IPOs comes in Primary market. BSE NSE comes in Secondary Market.
What is IPO?

Initial Public Offering. Company comes out with IPO to sell its shares to investors. Such shares get
listed on the Stock Exchanges (BSE/NSE). Main purpose of IPO is to raise capital for the company.
What is NAV?
Net Asset value is the market value of the assets of the scheme minus its liabilities. The per unit NAV
is the net asset value of the scheme divided by the number of units outstanding on the Valuation
Date.
What is the full form SEBI?
Securities Exchange Board of India
What are derivatives?
A security whose price is dependent upon or derived from one or more underlying
assets. The derivative itself is merely a contract between two or more parties.
Its value is determined by fluctuations in the underlying asset. The most common
underlying assets include stocks, bonds, commodities, currencies, interest rates and
market indexes.
What is Mutual Fund?
A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of India) that
pools money from individuals/corporate investors and invests the same in a variety of different
financial instruments or securities such as equity shares, Government securities, Bonds, debentures
etc.
Types:
At the fundamental level, there are three varieties of mutual funds:
1) Equity funds (stocks)
2) Fixed-income funds (bonds)
3) Money market funds

Let's go over the many different flavors of funds. We'll start with the safest and then work
through to the more risky.
Money Market Funds
The money market consists of short-term debt instruments, mostly Treasury bills. This is a safe place
to park your money. You won't get great returns, but you won't have to worry about losing your
principal.
Bond/Income Funds

Income funds are named appropriately: their purpose is to provide current income on a steady basis.
When referring to mutual funds, the terms "fixed-income," "bond," and "income" are synonymous.
These terms indicate funds that invest primarily in government and corporate debt. While fund
holdings may appreciate in value, the primary objective of these funds is to provide a steady cash
flow to investors.
Bond funds are likely to pay higher returns than certificates of deposit and money market
investments, but bond funds aren't without risk. Because there are many different types of bonds,
bond funds can vary dramatically depending on where they invest. For example, a fund specializing
in high-yield junk bonds is much more risky than a fund that invests in government securities.
Furthermore, nearly all bond funds are subject to interest rate risk, which means that if rates go up
the value of the fund goes down.
Balanced Funds
The objective of these funds is to provide a balanced mixture of safety, income and capital
appreciation. The strategy of balanced funds is to invest in a combination of fixed income and
equities. A typical balanced fund might have a weighting of 60% equity and 40% fixed income. The
weighting might also be restricted to a specified maximum or minimum for each asset class.
A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a
balanced fund, but these kinds of funds typically do not have to hold a specified percentage of any
asset class. The portfolio manager is therefore given freedom to switch the ratio of asset classes as
the economy moves through the business cycle.
Equity Funds
Funds that invest in stocks represent the largest category of mutual funds. Generally, the investment
objective of this class of funds is long-term capital growth with some income. There are, however,
many different types of equity funds because there are many different types of equities. A great way
to understand the universe of equity funds is to use a style box, an example of which is below.
Global/International Funds
An international fund (or foreign fund) invests only outside your home country. Global funds invest
anywhere around the world, including your home country.
It's tough to classify these funds as either riskier or safer than domestic investments. They do tend to
be more volatile and have unique country and/or political risks. But, on the flip side, they can, as
part of a well-balanced portfolio, actually reduce risk by increasing diversification. Although the
world's economies are becoming more inter-related, it is likely that another economy somewhere is
outperforming the economy of your home country.

Specialty Funds
This classification of mutual funds is more of an all-encompassing category that consists of funds
that have proved to be popular but don't necessarily belong to the categories we've described so far.
This type of mutual fund forgoes broad diversification to concentrate on a certain segment of the

economy.

Index Funds
The last but certainly not the least important are index funds. This type of mutual fund replicates the
performance of a broad market index such as the S&P 500 or Dow Jones Industrial Average (DJIA).
An investor in an index fund figures that most managers can't beat the market. An index fund merely
replicates the market return and benefits investors in the form of low fees.

What is Corporate Action?

Any event that brings material change to a company and affects its stakeholders.
This includes shareholders, both common and preferred, as well as bondholders.
These events are generally approved by the company's board of
directors; shareholders are permitted to vote on some events as well.
Types:
Splits, dividends, mergers, acquisitions and spin offs are all examples of
corporate actions. For example, a company may decide to split its shares 2:1, leaving
shareholders with twice as many shares as they had before
What is Pension Fund?
A fund established by an employer to facilitate and organize the investment of
employees' retirement funds contributed by the employer and employees. The
pension fund is a common asset pool meant to generate stable growth over the long
term, and provide pensions for employees when they reach the end of their
working years and commence retirement.
How much is the value of dollar in Indian rupees? Check as it changes
It frequently changes but currently its 48 Rs. (approx if not sure)

Accounting:
Golden rules of Accounts?
Personal Account Debit the receiver and Credit the giver.
Real Account Debit what comes in and credit what goes out.
Nominal Account Debit the expenses/losses. Credit the Income and Gain.

Debit means increase or decrease?

Debit means either increase or decrease.
What is Bank Reconciliation?
It is a statement to find out the difference between the Bank Book and the Pass Book.
Where does Contingent Liability appear in Balance sheet?
Contingent Liability appear as a foot note to Balance sheet. Those liabilities are bank guarantees,
future tax liability.
Where do prepaid expenses appear in Balance sheet?
Assets
Sometimes companies decide to prepay taxes, salaries, utility bills, rent, or the interest on their debt.
These would all be pooled together and put on the balance sheet under this heading.
What do you know about Syntel?
For this, please visit Syntel site through internet. Site name is www.syntelinc.com. This will give
better idea about the Company.

I visited your site syntelince.com to know about Syntel

Syntel the business of IT and Business Process Outsourcing (now KPO)
They provide solutions to their customers to improve quality and reduce cost.
Chairman and CEO of Syntel Bharat Desai
Syntel started its operations since 1980

Why Syntel or why do you want to join Syntel?

To learn more and grow in my Career professional as well as financially. Syntel has lot of young staff
and has good working culture. I will get good knowledge about insurance, capital market and
application processing.
Why should we hire you? Or what are your strengths?
I am hardworking and sincere. I can learn fast.

Few Abbreviations:

NCFM NSEs National Certificate in Financial Market.

AMFI Association of Mutual Funds in India.
IPO Initial Public Offering.
SEBI Securities Exchange Board of India

Demat Dematerialisation
ICICI - Industrial Credit and Investment Corporation of India
State Bank of India(SBI)
Housing Development Finance Corporation Limited(HDFC)
PUNJAB NATIONAL BANK(PNB)
Institute of Chartered Financial Analysts of India (ICFAI)

BA - Bachelor of Arts
BS - Bachelor of Science
EdD - Doctor of Education
LLB - Bachelor of Laws
(legum baccalaureus)
LLM - Master of Laws
(legum magister)
MBA - Master of Business
Administration
MS - Master of Science

BBA - Bachelor of Business

Administration
DA - Doctor of Arts
JD - Doctor of Law
LLD - Doctor of Laws
(legum doctor)
MA - Master of Arts
MD - Doctor of Medicine
(medicinae doctor)
PhD - Doctor of Philosophy

Speak about two minutes on any topic?

Cell phones
Technology is booming and cell phones are only a fraction of it. I mean come on who
doesnt have a cell phone? No one cares if were aloud to have them or not
because either way teens carry them on them 24-7 in school and out. Cell
phones became an issue when they first came out. Years ago they felt that
pagers and cell phones were being used for drugs. Realistically if someone wants to
get drugs their not going to depend on a cell phone to get it for them they will get drugs no
matter what. As Mrs. Fisher said,It became an issue because of the disruption in
class. Well if you know anything about cell phones you can put the ringer to
silent or quite so that it makes no noise and the class is not disrupted then
you can check your missed calls after class when you arent bugging anyone
around you. Im at school all the time with everything I do so I always need to
get a hold of my parents for rides and everything else especially with them
being divorced it makes it harder and I dont always know who Im with so I
call them during school. Ill admit it I always carry my cell phone on me all the
time but its on quite so that its not disruptive and I check my missed calls at break
and lunch and call my parents back. Its not a big deal its just another way of
communication, a big deal in life. I think that cell phones should be aloud on campus
because teens need to be able to get a hold of their parents in case of an emergency or
rides home.

I have been researching a lot on this topic and the most updated information. The OC
Register said that the state senate voted 38-1 Monday to remove a ban on students carrying
cell phones at school, sending the bill to the assembly. It also stated that cell phones have
become a family necessity and the first device used in a family emergency.
The other side of the story like I said was the noise, drugs, disruption, theft, etc. Lets
start with the noise issue. If theyre so concerned with the noise then just tell
everyone to be respectful to the teacher and class and to please turn the
phone on silent, quite, or off so that it makes no noise and you can check
your missed calls at break or lunch. Second, the whole drug issue is a joke. In
the interview I had with Mrs. Fisher she stated that, Drugs corresponding
with cell phones used to be the worry years ago, but not anymore. If
someone wants to get drugs they arent going to rely on a cell phone to get
it. People will get drugs no matter what, with a cell phone, or without. Third,
yes the phone can be a disruption to others, but not if you keep it in your
pocket or purse out of sight to others. Fourth, the phone could be stolen and I
realize that the office doesnt want to deal with it but if you look on the rule
sheet it states that they will not be responsible for stolen cell phones so right there
people know right away that if they want to carry their phone on them they are response.

Please also find the attached notes, lets keep this mail as a chain mail and make
balance
s heet.doc.zip (14 KB)

additions as and when we come up with the new questions & a

Financial
market.pdf.zip (205 ...

I wish you good

successful career J

uck for test and interview, a v

Best regards,
Shaikh Tabrez

s yntel interview
details .doc.z...

swers

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