MBA Finance interview for MNC companies Deloitte, Genpact, Wells Fargo etc @svprofessionals8544

So, hi Vedika. Hi sir. How are you ma? Fine sir, what about you sir? Great, I'm doing great Vedika. So, you did your master's? Yes sir. Okay. So, what was the aggregated percentage in the master's? I got 82 percent sir. Okay. In my MBA. Okay. So, why did you select MBA as your career? Yes sir, because I'm into the field of accounting and finance right from my graduation itself in B.Com computers and I have chosen MBA rather than M.Com and all the traditional post-graduations because MBA offers communication skills and professional skills as MBA is generally considered as a professional degree and in that too I have opted the stream of finance as I am a person who is interested in the field of finance and accounts. Okay Vedika. So, that means so you said your master's so in the finance. So, what was the project in your master's? Yes sir, my project is budgetary control sir and I have done it in Visio Diary Limited. Actually, it is a diary company and I have done it for 45 days actually. So, what do you learn from that project? Yes sir, budgets are very important in every organization definitely and which contributes to the increase in operating performance and profitability of the organization and budgets are an estimation of performance needs of the organization. Definitely, budgetary control is a system of controlling costs and comparing the actual performance with the budgets to increase the profitability and acting upon the results to review the performance and improve for the future purpose. What was the techniques which you used for this like you know doing of this analysis? Yes sir, I have used only one technique actually it is a normal generally used technique that is called variance analysis for doing the budgetary control. In that technique I have compared the two years budgets and I have done the percentage changes and absolute changes and I have interpreted according to the calculations I have done in the project. Okay, so that means you worked on the comparative analysis. Yes sir, it is like a comparative analysis we can say that. Okay. So, how do you find out the absolute change when we are doing a comparative analysis? We can find out the absolute change by subtracting the figures of the current year from the previous years actually. Okay. And the percentage change can be a ratio of the previous years and current years difference to the previous years into 100. Okay, fine. What was your findings from the project? Yes sir, I have found it that the company management has efficiently followed the cost management system and it has a very developed budgetary system and it has also maintained the budget manual in the company actually. So, any suggestions from your project? Yes sir, I will suggest that to maintain the same budget manual they have maintained, but they have not properly maintained with the dates and all they have just wrote the theory about the organization that is it. And another finding is that the company has to review on every activity for every month and every year actually that is very important. And company management needs to maintain a proper fund reserves even those are the findings of the project that have founded and they maintained it very well actually the proper fund reserves and all. Okay. Can I trust this like you know is an genuine profile or you modified? Yes sir, I have done it in my real time experience in the vizier diary for 45 days. I have went there and collected all the sources, I have used two sources actually primary sources, secondary sources. The information which is given by the company and also have browsed the internet and I have visited many websites also, I have referred many books related to the budgetary control in the library and I finally, made my project done. What is the major reason or major cause for doing a budgetary controls? Yes sir, actually when I wanted to do a project there was two topics available actually and one is I think it is related to some working capital management or inventory management I think so, and another is budgetary control. Everyone knows working capital management and everyone knows inventory control, but I thought that budgetary control is a peculiar topic which we can take and we can analyze so that everyone knows about the importance of budgets in the organization. Is that budgetary control techniques can be useful in the organization or even the personal professionals also we can use? Yes sir, in personals also there is no in household course also we use budgets actually. We compare the previous month budgets and the salaries and the incomes of household and we estimate the actual expenses and incomes and we prepare the budgets for the next month accordingly actually. So, do you have any idea about a SWOT analysis? Yes sir, SWOT refers to Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is nothing but a framework or an analysis of our strengths, weaknesses, opportunities and threats. Generally, it is referred to the organizations also not only individuals. We can analyze the strengths, weaknesses, organizations and threats of organizations and individuals as well actually. Strengths and weaknesses are considered as internal factors. Opportunities and threats are considered as external factors actually. Ok Vedika. So, I can ask one question. So, can you please consider this SWOT analysis on your personal and tell me what is your strength and what is your weakness? Generally, my strength is I always say I am a hardworking person and a disciplined person and my weakness is I am a little bit of thinker actually and I trust easily, I trust all the people easily and coming to opportunities and all there are many opportunities available in corporate sector for an MBA, post graduate definitely I say and in the same way the threats including that there is a high competition in even in the field of finance and accounting nowadays. So, how could you rate about finance and accounting? Yes sir, I could rate 8 out of 10 in the finance and accounting. So, yeah it means it is excellent. Yes sir. Are you excellent? Maybe I do not think I can rate, I am on a scale of very good to excellent. I am not saying that I am excellent. Ok fine. So, tell me what is the general entry for credit sales? Yes sir, accounts receivable, account data to sales account as accounts receivable is asset to the organization and sales are income to the organization. So, the entries accounts receivable, account data to sales account or credit sales account. Are you sure? Yes sir, I am sure. So, do you have any idea about accruals, how the accruals can be work and how the real time things will be happen? Yes sir. Can you please express? Generally accruals stands for outstanding, there are two types of accruals, accrual expenses will be there, accrual incomes will be there, accrual expenses leads to the accounts payables actually, which means it involves in the process of procured to pay actually and accrual incomes comes to the bills receivables, it is like order to cash we can say definitely and all the accrual expenses are liabilities to the business, all accrual incomes are assets to the business definitely. So, what do you mean by then accrual expenses? Yes sir, an expense which is incurred now and the settlement will be done in the future is called accrual expense. For example, rent we can take as accrual expense. So, the general entry will be like rent account data to rent payable, rent payable account we can say. What is the adjustment entry for that? For example, we can take an example, we have to pay the rent for the month of January let us consider and we paid it in the month of February, then how the general entry works is for January we have to write rent account data to rent payable account and when we paid the amount actually in February we write like rent payable account data to cash account and the final entry comes is we have to cancel both the rent payables in the debit and the credit and final entry will be like rent account data to cash account as the rent is an expense to the organization and cash is going out of the organization. So, you said rent payable account data to cash. Yes sir. So, is that rent payable is expenses or assets to the business? Rent payable is liabilities are actually it is not an expense or asset it is liability actually. Are you sure? Yes sir, rent payable is liability, rent is expenses sir. Ok. So, what is a going concern concept and how this going concern concept is working? Yes sir, according to the going concern concept we are always assuming that the business will be run for future years or long term period and always our assumption would be like that the business exists forever. So, that is for example, if we consider we are purchasing a machinery actually and we assume that that machinery will be useful for our business and will be run and with that machinery we can run the business for more 10 years for more years or long term period actually. Ok. So, that means, you are assuming that. So, the machinery will be continue for like you know. Future years. For example, the business is getting loss. Yes sir. So, then can I continue my business? Yes sir, it is depending upon the winding up terms of the company and the percentage of loss that the company is making this and all will be considered when the company is in loss for a more future years sir. So, do you know what is the procedure for winding up in a company? Yes sir, for the winding up of a company first we need to check the loss balance sheets and profit and loss accounts. For many years now if we got loss in one year we would not wind up the company. If we got if we get loss for many years then we will think of winding up and even we are not in a position to pay all the liabilities then we go for winding up. We have to take the process called capital structure payment actually. First we have to pay off the debentures and then preferentials and then comes to the equity shareholders which means we say. But I have a question here. Yes sir. When the company is going to wind up. Yes sir. We do raise IP insolvency petition right? Yes sir, first we calculate all the assets and liabilities of the company and according to that we pay all the debenture holders and preferentials and if there is no possibility to pay the complete liabilities for the debentures and preferential holders then we will go for a insolvency petition actually. First we try to pay off if we are not in a position and the business is in very heavy losses then we think of insolvency IP actually insolvency petition. So for example you said like you know something payables versus receivables. Yes sir. So some of the amount which is receivable from your customer unfortunately last one year onwards he is not paying. So what you will do? Definitely it would be considered as bad debts if he is not paying almost for more one year and before one year we consider it as doubtful debts actually or accounts receivable. After one year we consider as it has a bad debts and definitely it is a loss to the company. So what are the accounting branches we do follow and how this branches can be work can you please explain. Yes sir. There are mainly three branches of accounting cost accounting, financial accounting, management accounting. Cost accounting is an accounting in which we find out the manufacturing cost or production cost by preparing cost sheet and production accounts and ready to sale process and financial accounting is a core accounting in which we concentrate on profitability and financial position of the organization. In financial accounting we prepare profit and loss account to know the profitability and balance sheet to know the financial position of the company. In management accounting is a process of planning, organizing, controlling, forecasting and decision making. In management accounting we take decisions regarding how to run a business successfully. In cost accounting the main aim is to find out one unit cost. One unit cost is equal to total cost by number of units produced. In financial accounting the main aim is to find out one share value. Then one share value is equal to net income by number of shares in the business and in management accounting we always try to planning and organizing the activities in the business and company management highly involves in this type of accounting management accounting. And there is another point to be noted called where the cost accounting work will end, there the financial accounting work will start, where the financial accounting work will end, there the management accounting work will start, where the management accounting work will end, there the next financial work will start. For example, the organization starts the next year processes like if it is related to trading it starts producing goods and all, if it is services it starts providing services and all. What is the cost formula? Yes sir. You said. One unit cost is equal to total cost by number of units produced. So, do you have any idea about ratio analysis? Yes sir, I have a brief idea sir. So, may I know what is net operating profit ratio? Net operating profit ratio, SR, net operating profit ratio is equal to net income by net sales into 100. Are you sure? Yes sir, net operating profit ratio, net operating profit. How do you calculate net operating, can you please tell me? Yes sir, net operating profit is nothing, but gross profit minus operating expenses we can say net operating profit, then net operating profit is equal to operating income by net sales into 100. So, do you have any idea about the balance sheet, how the balance sheet can be work? Yes sir. Can you please tell me like what is the difference between provisions versus reserves? Yes sir. Reserves are nothing, but the amount which is kept aside in the business for future risk is called reserve. Reserves are generally created in the organization when the business is in profits. Provision is a short term liability which will be cleared in the future and provision is a non-liability which we can measure by substantial degree of estimation of all payables for financial years. Reserves does not have any accounting standards, provisions have an accounting standards and reserves are not created for a specific purpose, provisions are created for a specific purpose like provision for tax, provision for discount on debtors, provision for doubtful debtors like that sir. Question here. So, what is the general entry for provision for tax when you are creating in the financial year? When we are creating in the financial, sir provision is recorded as expense generally. So, provision for tax account debtor to we can say to profit and loss account are. Sure. No sir, we can say like provision for tax account debtor to cash account, not sure sir I will work on it. Ok. So, do you have any idea about like financial instruments? Yes sir, financial instruments are nothing, but the preference shares, equity shares, debentures, dividends and bonds. Preference shares are the are not the real owners of the company, they are just the persons who invest in the company and they will receive the dividends at the end of the financial year. Equity shareholders are the real owners of the company and involves in the management activities of the company even and they will get the profits after distributing the dividends to the preference shareholders and coming to the debentures, the debentures are nothing, but it is like a bonds or liability to the company which for which the company pays interest to the debenture holders and debt certificate is issued to the debenture holders. Ok. And coming to the dividends, dividend is an amount which is payable to the shareholders at the every financial year for their investment in the business in the organization. And bonds are nothing, but these are the certificates or documents which are issued by an organization which are secured and pays and agrees to pay the rate of interest every year. Ok. So, that means, who will decide this rate of interest? Sir, it depends on sometimes it depends on company management will decide and there are some government regulations also that a company within this capital or there are types of companies. So, should pay this type of interest, should pay the dividends like this and all. Generally, in board meeting the shareholders and the company management will decide the rate of interest and the dividends and all. Ok. So, you said like you know deduction of dividends. After deducting the dividends there is one term. Yes sir. One retained earnings will come back. Yes sir. So, how do you calculate the retained earnings? What is the procedure to find out the retained earnings? Ok sir. After doing all the revenues and expenses and in the amount of net income left for the business is generally called retained earnings generally and after deducting all the operating expenses, non-operating expenses and all and it is a net income generally management decides whether to keep the entire amount of retained earnings with the company for the business purpose or to distribute it to the shareholders. After from the net income we pay dividends to the shareholders and from that we got retained earnings generally. So, retained earnings is nothing but shareholders equity and shareholders equity minus dividends we can say sir. So, you are deducting the dividends and everything. Yes sir. Then we will get a retained. And there is another formula also we generally add both shareholders equity and retained earnings. So, we will get the total liabilities in the vertical balance sheet actually. You know what is the reason why they are adding? Yes sir, because after deducting the dividends to the shareholders then only the amount is remaining. It is regarded as additional capital for the business. So, in that case they will add retained earnings. Then even we do create reserves in that time. Yes sir, reserves are created for risk purpose generally. How many types of reserves generally we have? Yes sir, generally there are four types of reserves, general reserve, statutory reserve, revenue reserve, secret reserve. As per my knowledge it is five reserves. Yes sir, sometimes they are considered capital reserve is also considered, but generally there are four types and capital reserve is also considered generally. So, do you have any idea on IFRS? Yes sir, IFRS stands for International Financial Reporting Standards. IFRS refer to a set of accounting rules, how the transactions or economic events are required to be reported on financial statements. These IFRS standards are issued by the International Accounting Standards Board IASB and these are nothing but a unitary set of standards which can solve many problems in the accounting world in the organizations. Generally there are 15 IFRS standards. We can say IFRS 1 first time adoption of international financial reporting, IFRS 2 is share based payment, IFRS 3 is business combinations, IFRS 4 insurance contracts. Give me, so here, so you said IFRS 2 right? Yes sir. So, what do you mean by IFRS 2? Share based payment is nothing but paying dividends to the shareholders, share based payment it is called. So, basically Vedika, this is a night shift and even the pressure is a lot, you are able to manage? Yes sir, I am comfortable with any shift first of all and if it is required by the company I am always ready to work in any shift and I can manage the pressure definitely because I am a person who gives more priority to the career first of all and I am as an individual I am always ready to work under pressure as I believe working under pressure is a key to success. So, you are expecting any cap something like that from the company facility? Sir, I would be grateful if you provide the cap facility, if not I will arrange my own transport facility sir. I am okay with any of that. So, how many years can we expect, at least 3 years you need to work with my company? Are you okay with that? Sir, I am here to become an employee of your organization first of all and build my career and gain a lot of experience in my field of interest first of all and I look forward for a long term association with you definitely, it may be 3 years, 4 years whatever it may be I always look forward for a long term association. Are you ready to sign on the bond? Yes sir, I am ready to sign on the bond as I am passionate about the field actually, it is my field of interest and in which I can enjoy each and every second of my work so, I can ready to sign on bond. Okay, so personal life is important or professional life is important as like you know? Sir, according to me both are important, personal life and professional life because family is the pillars of our support because they support us in all the low times, when we are in very low condition and all, when we are in stress and very dull and very demotivated condition, they are the pillars of our strength and they always stand with us in all the difficulties and happiness. So, personal life is very important and professional life is also very important because professional life creates a own identity to an individual and gets the monetary benefits definitely to the individual. So, both are like two sides of the coin without which an individual can't lead a life happily. What are the salary expectations? Sir, I would accept the offer according to the company norms and company salary grid and I hope the best from you. Okay, so last question. Yes sir. Why you want to select? Tell me the two reasons for your selection. Yes sir, first of all I am a qualified candidate with a good academic knowledge and secondly I am a hardworking individual and quick learner and have an ability to adopt myself in any new environment and I can adjust and learn new things at corporate level. So, those are the two reasons for which you can hire me and if I get hired I definitely assure you that I will meet all the company expectations. Okay, fine Vedika. So, my interview is done, so do you have any questions for me? No sir, I don't have any questions. Anything please feel free to ask. No sir, for the time being I don't have any questions. Okay, great. So, my HR team will connect with you. Thank you sir. All the best. Thank you sir.