Acuity Knowledge Partners Interview Questions, Process, and Tips

Preparing Investment memorandum

Q1. All about modelling and core finance questions
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Q2. Dcf based questiins kpis
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Q1. Questions related to cash flow statement, balance sheet and ratio analysis other technical terms are tangible networth, cash conversion cycle, impairment, minority interst.
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Q2. What is correlation between balance sheet and profit and loss account
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The balance sheet and profit and loss account are interrelated financial statements that provide a comprehensive view of a company's financial health.
• The balance sheet shows a company's assets, liabilities, and equity at a specific point in time, while the profit and loss account shows a company's revenues, expenses, and net income over a period of time.

• Changes in the balance sheet can impact the profit and loss accoun...read more
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Q1. It's was all about people Management, budgeting and costing, Resource utilisation
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Q2. All was situation based answers which the interviewer liked and processed for my candidature.
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All on business development and optimum use of resources

Q1. What is your current profile and package
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Q1. All questions related to the current process
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Q1. What is DSCR Ratio?
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DSCR Ratio stands for Debt Service Coverage Ratio, which is a financial metric used to measure a company's ability to cover its debt obligations.
• DSCR Ratio is calculated by dividing a company's operating income by its total debt service payments.

• A DSCR Ratio of 1 or higher indicates that a company is generating enough income to cover its debt payments.

• Lenders typically look for a DSCR Ratio of 1.25 or higher to conside...read more
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Q2. How three statements link together?
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Three statements link together by providing a logical progression or connection between each other.
• The first statement sets the context or introduces a topic.

• The second statement provides additional information or elaborates on the topic introduced in the first statement.

• The third statement concludes the discussion or offers a resolution based on the information provided in the first two statements.
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Q1. Important line items in 3 statements which are useful to assess the credit worthiness of the Company
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Key line items in financial statements for assessing credit worthiness
• Debt to Equity Ratio: Indicates the company's leverage and ability to repay debt. Lower ratio is favorable.

• Interest Coverage Ratio: Shows the company's ability to cover interest expenses with operating income. Higher ratio is better.

• Current Ratio: Reflects the company's liquidity and ability to meet short-term obligations. Ratio above 1 is ideal.

• Net ...read more
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Q2. What is impairment of assets
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Impairment of assets is the process of recognizing a decrease in the value of a company's assets on its balance sheet.
• Impairment occurs when the carrying amount of an asset exceeds its recoverable amount.

• It is typically recorded as a non-cash charge on the income statement.

• Common examples include goodwill impairment and impairment of long-lived assets.

• Impairment testing is required annually for assets with indefinite u...read more
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Q1. DSCR and Leverage Ratio
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Q2. What is EBITDA and adjustments to be made in net profit to get EBITDA
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