Kotak Mahindra Investments Interview Questions and Answers

Basic Financial Accounting concepts
Email Writing
Logical Reasoning

Q1. What goes in the line items of Income Statement?
Ans. 
Line items in an Income Statement include revenues, expenses, gains, and losses.
• Revenue: Sales of goods or services

• Cost of Goods Sold (COGS): Direct costs related to producing goods sold

• Gross Profit: Revenue minus COGS

• Operating Expenses: Costs related to running the business (e.g. salaries, rent)

• Operating Income: Gross profit minus operating expenses

• Interest Expense: Cost of borrowing money

• Net Income: Total profit afte...read more
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Q2. What is Investment Banking?
Ans. 
Investment banking involves providing financial advisory services to corporations, governments, and other institutions for raising capital, mergers and acquisitions, and other financial transactions.
• Helps companies raise capital through issuing stocks or bonds

• Assists in mergers and acquisitions by providing valuation and negotiation services

• Provides financial advisory services for various transactions such as IPOs, deb...read more
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Q3. Explain the impact of share buyback on the 3 financial statements.
Ans. 
Share buybacks impact financial statements by reducing outstanding shares, increasing EPS, and affecting cash flow.
• Share buybacks reduce the number of outstanding shares on the balance sheet.

• This can increase earnings per share (EPS) as the same amount of earnings is distributed among fewer shares.

• On the income statement, share buybacks can lead to higher EPS and potentially higher stock prices.

• Share buybacks can also ...read more
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Q4. Impact of bonus share issue on 3 financial statements.
Ans. 
Bonus share issue impacts financial statements by increasing equity on balance sheet, reducing retained earnings, and affecting earnings per share.
• Increase in equity on balance sheet due to additional shares issued at no cost

• Reduction in retained earnings as company's profits are distributed among more shareholders

• Impact on earnings per share as number of shares outstanding increases
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