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Kotak Mahindra Bank

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10+ Forever Living Products Interview Questions and Answers

Updated 24 Feb 2025
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Q1. How CC asessment is done?

Ans.

CC assessment is done by evaluating credit history, income, debt-to-income ratio, and credit score.

  • Credit history is reviewed to see if there are any missed payments or defaults.

  • Income is evaluated to determine if the applicant can afford to make payments.

  • Debt-to-income ratio is calculated to see if the applicant has too much debt compared to their income.

  • Credit score is checked to see if the applicant has a history of responsible credit use.

  • Examples of CC assessment include ...read more

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Q2. How you assess financial viability of any company

Ans.

Assessing financial viability of a company involves analyzing its financial statements, industry trends, and management practices.

  • Review financial statements such as balance sheet, income statement, and cash flow statement

  • Analyze industry trends and competition to understand market position

  • Evaluate management practices and leadership to assess decision-making and risk management

  • Consider external factors such as economic conditions and regulatory environment

  • Use financial ratio...read more

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Q3. How do you plan to manage the entire Madhya Pradesh state?

Ans.

I plan to manage the entire Madhya Pradesh state by implementing efficient credit policies, building strong relationships with clients and stakeholders, and closely monitoring credit risk.

  • Developing and implementing credit policies and procedures to ensure timely and accurate credit decisions

  • Building strong relationships with clients, vendors, and other stakeholders to facilitate smooth credit transactions

  • Closely monitoring credit risk and taking proactive measures to mitigat...read more

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Q4. What is MPBF formula

Ans.

MPBF formula is used to calculate the maximum permissible bank finance for a borrower.

  • MPBF stands for Maximum Permissible Bank Finance.

  • It is calculated by multiplying the working capital of the borrower with the margin prescribed by the bank.

  • The formula is: MPBF = Working Capital x Margin

  • For example, if the working capital of a borrower is $100,000 and the bank's prescribed margin is 20%, then the MPBF would be $20,000.

  • This formula helps banks determine the maximum amount of ...read more

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Q5. What do you understand about loan processes

Ans.

Loan processes refer to the steps involved in obtaining and managing a loan.

  • Loan application and approval process

  • Loan disbursement process

  • Loan repayment process

  • Loan default and collection process

  • Loan refinancing process

  • Examples: mortgage loans, personal loans, business loans

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Q6. What are Ratios are used in Credit assessments

Ans.

Ratios used in credit assessments include debt-to-income ratio, loan-to-value ratio, and credit utilization ratio.

  • Debt-to-income ratio compares a borrower's monthly debt payments to their gross monthly income.

  • Loan-to-value ratio compares the amount of a loan to the appraised value of the asset being purchased.

  • Credit utilization ratio compares the amount of credit being used to the total amount of credit available to a borrower.

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Q7. How LC assessment is done?

Ans.

LC assessment involves evaluating the creditworthiness of the issuing bank and the buyer.

  • Assess the financial stability and reputation of the issuing bank

  • Evaluate the creditworthiness of the buyer

  • Review the terms and conditions of the LC

  • Consider the country and political risks involved

  • Assess the compliance of the LC with international trade regulations

  • Example: Checking if the issuing bank is on the list of approved banks by the importer's country

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Q8. How much working capital limit can be given against turnover of Rs.10 crore.

Ans.

The working capital limit against turnover of Rs.10 crore can vary based on various factors.

  • Working capital limit is typically a percentage of turnover, ranging from 20% to 30%.

  • For a turnover of Rs.10 crore, the working capital limit could be between Rs.2 crore to Rs.3 crore.

  • Factors such as industry, business stability, creditworthiness, and collateral can also impact the limit.

  • Lenders may also consider the company's financial health, cash flow, and repayment history.

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Q9. What is the minimum collateral cover to be maintained against the working capital facility.

Ans.

The minimum collateral cover against a working capital facility varies depending on the lender and the risk associated with the borrower.

  • Minimum collateral cover is typically expressed as a percentage of the total working capital facility.

  • Lenders may require collateral such as inventory, accounts receivable, or property.

  • The specific collateral requirements will be outlined in the loan agreement.

  • Collateral cover is determined based on the creditworthiness of the borrower and t...read more

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Q10. What is current ratio and its relivence

Ans.

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

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

  • A higher current ratio indicates that a company has more current assets than current liabilities, which means it is better equipped to pay off its short-term debts.

  • A lower current ratio may indicate that a company is struggling to pay off its short-term debts.

  • For example,...read more

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Q11. What were your major findings during the audit?

Ans.

During the audit, major findings included high levels of overdue accounts, discrepancies in financial records, and inadequate credit risk assessment procedures.

  • High levels of overdue accounts were identified, indicating potential cash flow issues.

  • Discrepancies in financial records were found, suggesting errors or fraud.

  • Inadequate credit risk assessment procedures were noted, increasing the company's exposure to bad debt.

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Q12. How do you conduct a fraud investigation?

Ans.

Fraud investigations involve gathering evidence, analyzing data, interviewing witnesses, and collaborating with law enforcement.

  • Start by gathering all relevant documents and data related to the suspected fraud.

  • Conduct interviews with employees, customers, and other relevant parties to gather information and potential leads.

  • Analyze financial records, transactions, and other evidence to identify any irregularities or suspicious activities.

  • Collaborate with law enforcement agenci...read more

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Q13. 2 How u assess income

Ans.

Assessing income involves analyzing financial documents and verifying sources of income.

  • Reviewing pay stubs, tax returns, and bank statements

  • Verifying employment and income with employers

  • Calculating debt-to-income ratio

  • Considering any additional sources of income, such as rental income or investments

  • Assessing the stability and consistency of income

  • Adjusting for any non-recurring or irregular income

  • Using industry benchmarks and standards to compare income

  • Considering any potent...read more

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Q14. Stock observed at the time of PD

Ans.

Stock observed at the time of PD refers to the inventory of goods available at the point of product delivery.

  • Stock observed at the time of PD is important for ensuring that the correct quantity and quality of goods are delivered to the customer.

  • It helps in identifying any discrepancies between the ordered and delivered goods.

  • For example, if a customer orders 100 units of a product but only receives 80 units, the stock observed at the time of PD can help in identifying the mis...read more

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Q15. How do you manage fraud investigations?

Ans.

I manage fraud investigations by conducting thorough analysis, utilizing fraud detection tools, collaborating with law enforcement, and implementing preventative measures.

  • Conduct thorough analysis of suspicious activities and transactions

  • Utilize fraud detection tools and software to identify potential fraudulent behavior

  • Collaborate with law enforcement agencies and regulatory bodies to investigate and prosecute fraudsters

  • Implement preventative measures such as fraud awareness...read more

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Q16. How you track cash flow

Ans.

Cash flow is tracked by monitoring inflows and outflows of cash, analyzing financial statements, and forecasting future cash needs.

  • Monitor daily cash inflows and outflows

  • Analyze financial statements to identify trends and potential cash flow issues

  • Forecast future cash needs based on business plans and projections

  • Implement cash management strategies to optimize cash flow

  • Utilize accounting software to track and manage cash flow

  • Regularly review and update cash flow projections

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Q17. for which sectors have you evaluated credit

Ans.

I have evaluated credit in various sectors including retail, manufacturing, real estate, and healthcare.

  • Retail sector - analyzing creditworthiness of retail businesses and their ability to repay loans

  • Manufacturing sector - assessing credit risk for manufacturing companies based on financial stability and market trends

  • Real estate sector - evaluating credit for real estate developers and property management companies

  • Healthcare sector - reviewing credit profiles of hospitals, cl...read more

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Q18. What is DSCR

Ans.

DSCR stands for Debt Service Coverage Ratio. It is a financial ratio used to measure a company's ability to pay its debts.

  • DSCR is calculated by dividing a company's net operating income by its total debt service.

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

  • Lenders often use DSCR to assess the creditworthiness of a borrower before approving a loan.

  • For example, if a company has a net operating income of $100,000 and to...read more

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Q19. What is Current Ratio

Ans.

Current Ratio is a financial ratio that measures a company's ability to pay its short-term liabilities with its current assets.

  • Current Ratio = Current Assets / Current Liabilities

  • A higher current ratio indicates a better ability to pay off short-term debts

  • A lower current 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

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