Cholamandalam Investment & Finance Cpa Associate Interview Questions and Answers

Q1. Why is liquidity important and is it necessay in short term or long term perspective.
Ans. 
Liquidity is important for financial stability and is necessary in both short term and long term perspectives.
• Liquidity ensures that a company can meet its short term obligations and expenses.

• It allows for flexibility in managing cash flow and taking advantage of investment opportunities.

• In the long term, liquidity is important for sustaining operations, growth, and weathering economic downturns.

• Examples include having...read more
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Q2. What is difference between credit and counterparty risk
Ans. 
Credit risk is the risk of default by a borrower, while counterparty risk is the risk of default by a trading partner.
• Credit risk is specific to the borrower's ability to repay a loan or debt.

• Counterparty risk is broader and includes the risk of default by any party involved in a financial transaction.

• Credit risk is typically associated with lending activities, while counterparty risk is more common in trading and inve...read more
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Credit Reserach on any listed company

Q1. Enumerate the difference between NOPAT and FCF
Ans. 
NOPAT is the net operating profit after tax, while FCF is the free cash flow.
• NOPAT is a measure of a company's profitability that excludes taxes and interest expenses.

• FCF is a measure of a company's financial performance that represents the cash generated by the business after accounting for capital expenditures.

• NOPAT = Operating Income * (1 - Tax Rate)

• FCF = NOPAT + Depreciation & Amortization - Change in Working Capit
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Q2. Is negative working capital good for a comapny?
Ans. 
Negative working capital can be good for a company as it indicates efficient management of assets and liabilities.
• Negative working capital can indicate that a company is effectively using its short-term assets to fund its short-term liabilities.

• It can show that a company is able to quickly convert inventory or accounts receivable into cash to meet its short-term obligations.

• However, sustained negative working capital m...read more
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Q3. Is one time item in CFO an alarming item for a comany seeking debt?
Ans. 
Yes, one-time items in CFO can be alarming for a company seeking debt.
• One-time items can distort the true financial health of a company

• Lenders may view one-time items as unsustainable sources of income

• It may raise concerns about the company's ability to generate consistent cash flow

• Companies should provide explanations for one-time items to lenders
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Q4. How can a company remove its debt but not affect the cash flow?
Ans. 
A company can remove its debt without affecting cash flow by refinancing debt at lower interest rates, increasing revenue, or selling assets.
• Refinance debt at lower interest rates to reduce debt burden

• Increase revenue through sales growth or cost-cutting measures

• Sell assets to generate cash and pay off debt

• Negotiate with creditors for better repayment terms
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Q1. Golden rules of Accounting
Ans. 
Golden rules of Accounting are basic principles that guide the process of recording financial transactions.
• The three golden rules of accounting are: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified.

• For example, when a company receives cash from a c...read more
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Q2. What's fund accounting
Ans. 
Fund accounting is a specialized form of accounting used by non-profit organizations and government agencies to track and manage funds.
• Fund accounting involves tracking and reporting on funds designated for specific purposes.

• It is commonly used by non-profit organizations, government agencies, and investment companies.

• Each fund has its own set of accounts to track revenues, expenses, assets, and liabilities.

• Fund accoun...read more
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Q3. What is a structure of Mutual funds
Ans. 
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.
• Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

• Investors can buy shares of mutual funds, which represent their ownership in the fund's portfolio.

• Mutual funds can invest in stocks, bonds, money market instruments, or a combination...read more
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Q4. How mutual funds AMC works
Ans. 
Mutual funds AMC works by managing pooled funds from investors to invest in various securities and assets.
• AMC stands for Asset Management Company, which manages mutual funds on behalf of investors

• AMC collects money from investors and invests it in a diversified portfolio of securities

• AMC charges a fee for managing the funds, known as the expense ratio

• AMC's performance is measured by the fund's returns and how well it m
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Be through with all DSA questions

Q1. Technical questions based on profile
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Q1. 2 - technical round and 1 HR round, went very well. mostly core technical questions were asked.
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90min duration tym to complete the assignment through online

Q1. Self introduction basic topics
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Q1. Based on education background or what the skill they expecting based on it they will ask
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Q1. Self introduction,about company, strength nd goals , skills discussion
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Q1. Basics of java, Spring, SpringBoot and DB
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Q2. Java memory management. What difference between equals() and ==
Ans. 
Equals() compares the content of objects while == compares their reference.
• equals() method compares the content of two objects and returns true if they are equal.

• == operator compares the reference of two objects and returns true if they refer to the same object.

• equals() method can be overridden to provide custom comparison logic.

• Example: String s1 = new String("hello"); String s2 = new String("hello"); s1.equals(s2) re
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Q1. Same as round one but in-depth knowledge
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Q1. Project level interview. With 4 panel's. Java, Spring, springboot, DB - SQL and NoSql
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Q1. Salary discussion and why we have to hire you
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Q1. Tell about ur self. Am Senthil am coming from chrompet. I was completed bsc graduated. I have 10 years of experienced.
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Q1. What is the capital market
Ans. 
The capital market is a financial market where individuals and institutions trade financial securities.
• It facilitates the buying and selling of stocks, bonds, and other long-term investments.

• It provides a platform for companies to raise capital by issuing stocks or bonds.

• Investors can earn returns through capital appreciation or dividends.

• Examples of capital market institutions include stock exchanges, investment banks
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Q2. What is the reconciliation.
Ans. Reconciliation is the process of comparing transaction and activities to supporting documentation. Further reconciliation are involved and resolved the any discrepancies that have may been destroyed.
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