• What is primary & secondary market?

Primary market is the market where shares are offered to investors by the issuer company to raise their capital.
Secondary market is the market where stocks are traded after they are initially offered to the investor in primary market (IPO's etc.) and get listed to stock exchange. Secondary market comprises of equity markets and the debt markets.
Secondary market is a platform to trade listed equities, while Primary market is the way for companies to enter in to secondary market.

• Who decides the Price Band?

Company with help of lead managers (merchant bankers or syndicate members) decides the price or price band of an IPO.
SEBI, the regulatory authority in India or Stock Exchanges do not play any role in fixing the price of a public issue. SEBI just validate the content of the IPO prospectus.
Companies and lead managers does lots of market research and road shows before they decide the appropriate price for the IPO. Companies carry a high risk of IPO failure if they ask for higher premium. Many a time investors do not like the company or the issue price and doesn't apply for it, resulting unsubscribe or undersubscribed issue. In this case companies' either revises the issue price or suspends the IPO.

• Who decides the date of the issue?

Once ‘Draft Prospectus' of an IPO is cleared by SEBI and approved by Stock Exchanges then it's up to company going public to finalize the date and duration of an IPO. Company consult with the Lead Managers, Registrar of the issue and Stock Exchanges before decides the date.

• What is the role of registrar of an IPO?

Registrar of a public issue is a prime body in processing IPO's. They are independent financial institution registered with SEBI and stock exchanges. They are appointed by the company going public.
Responsibility of a registrar  for an IPO is mainly involves processing of IPO applications, allocate shares to applicants based on SEBI guidelines, process refunds through ECS or cheque and transfer allocated shares to investors Demat accounts.

• What is the role of Lead Managers in an IPO?

Lead managers are independent financial institution appointed by the company going public.  Companies appoint more then one lead manager to manage big IPO's. They are known as Book Running Lead Manager and Co Book Running Lead Managers.
Their main responsibilities are to initiate the IPO processing, help company in road shows, creating draft offer document and get it approve by SEBI and stock exchanges and helping company to list shares at stock market.

• What is Follow on public offering or FPO?

Follow on public offering (FPO) is public issue of shares for already listed company.

• What is the life cycle of an IPO prospectus?

Stage 1:  Draft Offer document
"Draft Offer document" is prepared by Issuer Company and the Book Building Lead Manager of the public issue. This document is submitted to SEBI for review. After reviewing this document either SEBI ask lead managers to make changes to it or approve it to go ahead with IPO processing.
Draft document are available on SEBI's website in the section of ‘Reports -> Public Issues: Draft Offer Documents filed with SEBI" at: http://www.sebi.gov.in/SectIndex.jsp?sub_sec_id=70
"Draft Offer document" is usually a PDF file having information of an investor who needs to know about the public issue. It mainly contain information about the company, its business, management,  risk involve in applying to this issue, company financials and the reason why company is raising money through IPO.
Stage 2:  Offer Document
Once the ‘Draft Offer document' cleared by SEBI, it becomes "Offer Document".  Offer Document is the modified version of ‘Draft Offer document' with SEBI suggestions.
"Offer Document" is submitted to the registrar of the issue and stock exchanges where Issuer Company is willing to list.
Stage 3: Red Herring Prospectus
Once "Offer Document" gets clearance from Stock Exchanges, Issuer Company add Issue size and price of the issue to the document and make it available to the public. The issue prospectus is now called "Red Herring Prospectus".
Red Herring Prospectus also can be found on SEBI website at:
http://www.sebi.gov.in/SectIndex.jsp?sub_sec_id=72

• What is the life cycle of an IPO?

Below is the detail process flow of a 100% Book Building Initial Public Offer IPO. This process flow is just for easy understanding for retail IPO investors. The steps provided below are most general steps involve in the life cycle of an IPO. Real processing steps are more complicated and may be different. Please visit SEBI website, stock exchange website or consult an expert for most current information about IPO life cycle in Indian Stock market.

1. Issuer Company - IPO Process Initialization
   1. Appoint lead manager as book runner.
   2. Appoint registrar of the issue.
   3. Appoint syndicate members.
2. Lead Manager's - Pre Issue Role - Part 1
   1. Prepare draft offer prospectus document for IPO.
   2. File draft offer prospectus with SEBI.
   3. Road shows for the IPO.
3. SEBI – Prospectus Review
   1. SEBI review draft offer prospectus.
   2. Revert it back to Lead Manager if need clarification or changes (Step 2).
   3. SEBI approve the draft offer prospectus, the draft offer prospectus is now become Offer Prospectus.
4. Lead Manager - Pre Issue Role - Part 2
   1. Submit the Offer Prospectus to Stock Exchanges, registrar of the issue and get it approved.
   2. Decide the issue date & issue price band with the help of Issuer Company.
   3. Modify Offer Prospectus with date and price band. Document is now called Red Herring Prospectus.
   4. Red Herring Prospectus & IPO Application Forms are printed and posted to syndicate members; through which they are distributed to investors.
5. Investor – Bidding for the public issue
   1. Public Issue Open for investors bidding.
   2. Investors fill the application forms and place orders to the syndicate members (syndicate member list is published on the application form).
   3. Syndicate members provide the bidding information to BSE/NSE electronically and bidding status gets updated on BSE/NSE websites.
   4. Syndicate members send all the physically filled forms and cheques to the registrar of the issue.
   5. Investor can revise the bidding by filling a form and submitting it to Syndicate member.
   6. Syndicate members keep updating stock exchange with the latest data.
   7. Public Issue Closes for investors bidding.
6. Lead Manager – Price Fixing
   1. Based on the bids received, lead managers evaluate the final issue price.
   2. Lead managers update the 'Red Herring Prospectus' with the final issue price and send it to SEBI and Stock Exchanges.
7. Registrar - Processing IPO Applications
   1. Registrar receives all application forms & cheques from Syndicate members.
   2. They feed applicant data & additional bidding information on computer systems.
   3. Send the cheques for clearance.
   4. Find all bogus application.
   5. Finalize the pattern for share allotment based on all valid bid received.
   6. Prepare 'Basis of Allotment'.
   7. Transfer shares in the demat account of investors.
   8. Refund the remaining money though ECS or Cheques.
8. Lead manager – Stock Listing
   1. Once all allocated shares are transferred in investors dp accounts, Lead Manager with the help of Stock Exchange decides Issue Listing Date.
   2. Finally share of the issuer company gets listed in Stock Market

• What is the difference between Book Building Issue and Fixed Price Issue?

Initial Public Offering can be made through the fixed price method, book building method or a combination of both.
Difference between shares offered through book building and offer of shares through normal public issue (Source: BSE):

Features	Fixed Price process	Book Building process
Pricing	Price at which the securities are offered/allotted is known in advance to the investor.	Price at which securities will be offered/allotted is not known in advance to the investor. Only an indicative price range is known.
Demand	Demand for the securities offered is known only after the closure of the issue.	Demand for the securities offered can be known everyday as the book is built.
Payment	Payment if made at the time of subscription wherein refund is given after allocation.	Payment only after allocation

 
   
  

• What is debit and credit from the bank point of view? 

                    In Banks point of view debit means u have deposited money in the bank . and credit means u have withdraw money from the banks. In other word we can say that if debit bank balances shows in bank statement this means it is the unfavorable condition for the company and credit balance means it is the favorable condition for the company.

• What is the difference between Consigner and Consignee?

                    Consigner is the person deliver the goods to consignee.

                    Consignee is the person who will receives goods.

•  What is the full form of SOX in accounts? 

Sarbanes Oxley act.Otherwise known as Public companies accounting reforms and investor protection act. It was enacted in 2002 in USA after lot of scams arosen on accounting framework whereby investors lose faith and confidence on accounting disclosures.

• What is the types of assets? 

1)Fixed Asset :- Expenses which is paid for generating income for more than one financial year e.i. Plant & Machinery, Building, Furniture
a)Tangible Asset :- asset which can be physically measured and touch e.i. Plant&Machinery,
Building
b)Intangible Asset :- asset which can't physically measured and touch e.i. Trade mark Goodwill
2)Current Asset :- Asset which can be easily converted in cash e.i. cash in hand, cash at bank, stock
3)Fictitious assets:
its not the actual assets , its the expenditure occurred at the tine of commencement of firm ( capital expenditure )like preliminary expenses, discount on issue on debenture/shares, underwriting commission etc

• What is meant by liabilities ?  

Liabilities are obligations or debt an enterprise must pay in money or services at some time in a future.

liability in the sense the company is liable to pay then it could be regarded as a liability
this could be explained as -
assets -capital=liability

• What is the meaning of invoice?

Invoice is a statement which contains the under mentioned details compulsorily.

1. Invoice Numner

2. Invoice date

3. Name and address of the person making the invoice ( Seller of goods and service)

4. Name and address of the person to whom invoice is made. ( Buyer of goods and service)

5. Description of goods / services involved

6. Applicable rates and taxes with percentages

7. Rate of the goods / services

8. Quantity of the goods and services

9. Quality or any other specifications

10. Price / Value of the goods and services

11. Invoice must be signed by the person making it

12. Terms and conditions of making the payment.

• What steps would you take before approving an invoice for payment?

                  

Following steps should be taken..

>Validate the invoice once it is matched for checking any holds..

>If work flow is implemented , Initiate approval for the invoice. Once the invoice is approved/Approval not required(status in case WF is not implemented) you can go for payments.

>Create accounting after approval of invoice..

Finally for payments u need to format, build..

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Before making payment

the following steps should be taken
1. invoice amt, date, qty,
2. invoice duplication or not
3. rectification of any Errors in invoice 

• What is the difference between SAP MEMORY and ABAP MEMORY?

SAP Memory: Global, user-related memory that extends beyond transaction limits.Access to the SAP memory is via SPA/GPA parameters.

ABAP Memory:Memory area within each main session, which can be accessed by programs using the EXPORT and IMPORT statements and which remains available using a series of program calls (call sequence).

• What is capital market?

capital market is a market of securities. where a company and government raise long term funds. it is a market where money invested more them one year. in this we include the stock market and bond market.

•  Explain about Accounts Payable.

Accounts payable is nothing but " money which a company need to pay to vendors for goods and services purchased on credit.

1.Accounts payable is a current liability of a company.

2. This item appears on liability side of a balance sheet

•   What do you understand by Intercompany Settlement?

Intercompany settlement is a type of adjustment of funds made between two parental companies.
lets take an example:
If Co.A Sell goods worth $1000.00 to its own Subsidry Co.B and in the meanwhile Co.B sell goods worth $8000.00 to Co.A(it has to be in same FY), then at the end of the Financial Year Co.B has to pay only $2000.00 to Co.A. Co.A will pass an adjustment entry in their books for the difference amount.
(In case of other vendors this procedure cannot be followed)

• What is FBT(Fringe Benefit Tax)??

The tax payable on a non-salary benefit provided to an employee or an associate of the employee. The employer is liable to pay any FBT and may choose to recover the FBT amount from the employee.

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Tax payable by the employer on the amenities provided to employees and maintenance of vehicles,telephone bills and traveling and conveyance charges on 20% of the expenditure @ 30% tax. It will not be allowed as deduction from gross total income of the business organization. Any how it is abolished from the financial year 2009-10 onwards

• Tell us about an invoice discrepancy that you discovered and how you resolved the discrepancy.

Discrepancies in invoices could be many. Like there might a incorrect amount entered, incorrect date or account code combination entered etc. If the amount entered is not matching with the purchase order then the system will place the invoice on hold which will have to be released before going further. If there is no purchase order matching and if you have entered wrong amount and if it is approved then you can reverse the distribution line and create a fresh line for the correct amount. 

• Can you give a sample Process Flow for Procure to Pay Cycle?

step1 check on hand availability in inventory
step2 create requisition
step3 create rfq (req for quotation)
step4 create quotations
step5 analyze the quotes
step6 create purchase order
step7 po sent to supplier
step8 goods received
step9 invoice booked
step10 payment to supplier

• What is meant by Open Item Managed Account?

Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived.

• What is a IFA?

Institute of finance & accounts