Citicorp Associate Interview Questions and Answers

Q1. Design patterns and syntaxes
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Q2. Observer factory decorator pattern
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Q1. Asked many questions regarding banking trade, fees management, transaction monitoring, Derivatives
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Q2. What do you know about derivatives?
Ans. 
Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.
• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types of derivatives include options, futures, forwards, and swaps.

• For example, a call option gives the holder the right to buy an asset at a specified price within a certain time frame.

• Derivatives are traded on exchanges or over-the-counter (OTC)
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Q3. Type of risk you handled in your current process
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I handled operational risk in my current process.
• Identifying potential risks in daily operations

• Implementing controls to mitigate risks

• Monitoring and evaluating the effectiveness of risk management strategies
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Q4. Scenario based question
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Hacker rank test for Java programming codes

Q1. Java Spring boot annotations
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Q2. Java basics question
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Basic Quants questions were asked .

Q1. Questions were asked on debt instruments.
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Q1. Self introduction
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Q2. Select Any topic and tell about that topic with confidence and fluent
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Q1. About which job ur applying for ,u should know about that
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Q2. Finance related questions
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Q1. Finance and accounts About job role that I have applied for .
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Q1. Adjustment Journal entries, Subscription and Redemption Journal Entries and do they affect the NAV,
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Q2. Management fees, Performance Fees, Hurdle Rate
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Q3. About your process
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Q4. Corporate action like split and reverse split and how they affect the NAV
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Q5. Corporate action you know and their impact on Nav.
Ans. 
Corporate actions like dividends and stock splits can impact Net Asset Value (NAV) of a mutual fund.
• Dividends: When a company pays out dividends, the NAV of the mutual fund decreases by the amount of the dividend.

• Stock Splits: If a company undergoes a stock split, the NAV of the mutual fund will adjust accordingly to reflect the new number of shares.

• Rights Issue: If a company issues new shares through a rights offering...read more
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Q6. Financial statements
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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?
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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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