10+ Crisil Interview Questions and Answers for Freshers

A rice production company can be valued using various methods such as discounted cash flow, comparable company analysis, and precedent transactions.

• Consider the company's historical financial performance and future growth prospects

• Evaluate the company's assets, liabilities, and cash flow

• Compare the company to similar publicly traded rice production companies

• Look at recent transactions in the rice production industry to determine a fair valuation

Daawat (LTFOODS) is a leading brand in the rice industry known for its high-quality products and wide range of offerings.

• Daawat (LTFOODS) is a well-known brand in the rice industry.

• It offers a wide range of high-quality rice products such as Basmati rice, brown rice, and organic rice.

• Daawat (LTFOODS) is known for its commitment to quality and innovation in the rice market.

• The brand has a strong presence both in India and internationally.

• Daawat (LTFOODS) has won several awards...read more

Three financial statements used by companies to assess their financial performance.

• Income Statement: Shows a company's revenues, expenses, and profits over a specific period of time.

• Balance Sheet: Provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

• Cash Flow Statement: Details the cash inflows and outflows of a company, helping to assess its liquidity and financial health.

Covenant is a financial agreement between a borrower and a lender that outlines the terms and conditions of a loan.

• Covenants are designed to protect the lender by ensuring the borrower meets certain financial ratios or performance metrics.

• There are two main types of covenants: affirmative covenants (requirements the borrower must meet) and negative covenants (restrictions on the borrower's actions).

• Examples of covenants include maintaining a minimum level of cash flow, limiti...read more

Current ratio is a financial ratio that measures a company's ability to pay its short-term obligations.

• Current ratio is calculated by dividing current assets by current liabilities.

• It is used to evaluate a company's liquidity and short-term financial health.

• A ratio of 1 or higher is generally considered good, indicating that the company can meet its short-term obligations.

• However, a very high current ratio may indicate that the company is not using its current assets efficien...read more

Operating lease is a short-term lease where the lessor retains ownership of the asset, while finance lease is a long-term lease where the lessee assumes ownership.

• Operating lease is typically used for assets with a shorter useful life, while finance lease is used for assets with a longer useful life.

• In an operating lease, the lessor is responsible for maintenance and repairs, while in a finance lease, the lessee is responsible.

• Operating lease payments are treated as operating...read more

The ratio of current assets and liabilities is a measure of a company's ability to pay off its short-term debts.

• Current ratio = current assets / current liabilities

• A ratio of 2:1 or higher is considered healthy

• Low ratio may indicate liquidity issues

• Example: If a company has $100,000 in current assets and $50,000 in current liabilities, its current ratio would be 2:1

The 5 Cs of credit analysis are character, capacity, capital, collateral, and conditions.

• Character refers to the borrower's reputation and credit history.

• Capacity assesses the borrower's ability to repay the loan based on income and existing debts.

• Capital looks at the borrower's assets and net worth.

• Collateral is the property or assets that can be used as security for the loan.

• Conditions consider the economic environment and purpose of the loan.

Cash flow statement shows the movement of cash in and out of a business, while profit and loss statement shows the financial performance over a period of time.

• Cash flow statement focuses on actual cash transactions, including operating, investing, and financing activities.

• Profit and loss statement shows the revenue, expenses, and profits or losses of a business during a specific period.

• Cash flow statement helps in assessing the liquidity and solvency of a business, while prof...read more

RDBMS is a relational database management system. Objects in a database include tables, views, indexes, functions, stored procedures, constraints, and foreign keys. OLAP is for data analysis while OLTP is for transaction processing.

• RDBMS stands for Relational Database Management System

• Objects in a database include tables, views, indexes, functions, stored procedures, constraints, and foreign keys

• OLAP (Online Analytical Processing) is used for data analysis and reporting

• OLTP (...read more

Financial ratios are tools used to evaluate a company's financial performance and health.

• Liquidity ratios measure a company's ability to meet short-term obligations (ex: current ratio)

• Profitability ratios assess a company's ability to generate profits (ex: return on equity)

• Efficiency ratios evaluate how well a company utilizes its assets to generate sales (ex: asset turnover ratio)

• Leverage ratios indicate the level of debt a company has taken on (ex: debt-to-equity ratio)

Modern portfolio theory is a mathematical framework for constructing investment portfolios.

• It was developed by Harry Markowitz in 1952

• It emphasizes diversification to minimize risk

• It uses statistical analysis to optimize portfolio returns

• It considers the correlation between assets

• It assumes investors are rational and risk-averse

I will achieve target by setting clear goals, creating a strategic plan, motivating my team, monitoring progress, and making adjustments as needed.

• Set clear and achievable sales targets

• Develop a strategic plan to reach targets

• Motivate and train sales team to perform at their best

• Regularly monitor progress towards targets

• Make adjustments to strategies as needed