financial management Interview Questions and Answers in 2025 (100+ Q&A)

Ques:- What are the eligibility criteria for a listed company to make public issue?

Asked In :- WFM, Razorpay-Startup, Eastman Chemical, Engro, Algorithmic Trading Strategies Pty, Fino Payment Bank, Happay, S S Kothari Mehta & Co, HexaCorp, CSTEP,

Right Answer:
The eligibility criteria for a listed company to make a public issue typically include:

1. The company must be listed on a recognized stock exchange.
2. It should have a track record of profitability for a specified number of years (usually 3 out of the last 5 years).
3. The company must comply with the minimum net worth requirements set by the regulatory authority.
4. It should have a minimum public shareholding percentage as per regulations.
5. The company must have filed necessary disclosures and documents with the regulatory authority.

Assistant Manager financial management

Ques:- How is the cash requirement estimated?

Asked In :- Chegg India, Medline Industries India, Circle Internet Financial, Eton, KMCH, TTN, Borosil Glass Works, IDeaS - A SAS Company, Valuefy Solutions, Hargreaves Lansdown,

Right Answer:
Cash requirements are estimated by analyzing projected cash inflows and outflows, considering factors such as sales forecasts, operating expenses, capital expenditures, and seasonal variations. This involves creating a cash flow forecast to determine the timing and amount of cash needed to meet obligations.

Assistant Manager financial management

Ques:- What are the sources used for financing temporary requirement of working capital?

Asked In :- Cummins India, Kohler India, Pricol, Prakash Kochar & Co, Novel Office, Consero Global Solutions, SMS India, Export Trading Group (ETG), NISM, JP Infra,

Right Answer:
The sources used for financing temporary requirements of working capital include:

1. Bank overdrafts
2. Short-term loans
3. Trade credit
4. Commercial paper
5. Factoring
6. Lines of credit

Assistant Manager financial management

Ques:- In what form can a bank disburse the amount of assistance it has extended to a company?

Asked In :- Chegg India, Pricol, Commonwealth Bank of Australia, Redcliffe Life Sciences, Slater & Gordon UK, Dechra Pharmaceuticals, Anthesis Consulting Group, Maple Leaf Foods, Varicent Software, Spinny,

Right Answer:
A bank can disburse the amount of assistance to a company in the form of cash, bank transfers, loans, or credit facilities.

Assistant Manager financial management

Ques:- What are the objectives of inventory management?

Asked In :- Bajaj Finserv Lending, District Cooperative Central Bank DCCB, Engro, Quantile, Sobha Developers, Absyz Software Consulting, IDeaS - A SAS Company, Novopay Solutions, edwisor, Redcliffe Life Sciences,

Right Answer:
The objectives of inventory management are to:

1. Maintain optimal inventory levels to meet customer demand.
2. Minimize holding and storage costs.
3. Reduce stockouts and excess inventory.
4. Improve cash flow and working capital.
5. Enhance inventory turnover rates.
6. Ensure accurate inventory records and data.
7. Support efficient production and supply chain operations.

Assistant Manager financial management

Ques:- Tell the disadvantages of issuing bonus shares?

Asked In :- IPE Global, LIGHT PHARMA, Basware India, NISC Exports Services (p), Excise Department, jusco, Niper, Sage Intacct, Doshi Accounting and Services, escalon,

Right Answer:
1. Dilution of earnings per share (EPS).
2. Potential decrease in share price due to increased supply.
3. Perception of financial instability if used to cover losses.
4. Reduced cash reserves for dividends or reinvestment.
5. Possible tax implications for shareholders.

Assistant Manager financial management

Ques:- Explain following bond types a.) Floating rate bonds b.) Zero coupon bonds

Asked In :- Bajaj Finserv Lending, Finacus Solutions, TBO Group, Macleods Pharma, Scorpio Tankers, JP Infra, London Stock Exchange Group, Bidfood, Dobbies, Robins & Day,

Right Answer:
a.) Floating rate bonds: These are bonds with interest payments that vary based on a benchmark interest rate, such as LIBOR. The interest rate is adjusted periodically, which means the bondholder's income can change over time.

b.) Zero coupon bonds: These are bonds that do not pay periodic interest. Instead, they are sold at a discount to their face value and pay the full face value at maturity. The difference between the purchase price and the face value represents the investor's return.

Assistant Manager financial management

Ques:- List out the advantages and disadvantages of Factoring?

Asked In :- Ashiana Housing, BOM, Eastman Chemical, Himatsingka Seide, JK Lakshmi Cement, NBP National Bank of Pakistan, Sobha Developers, Synchrony, Bharat Financial Inclusion, Novopay Solutions,

Right Answer:
**Advantages of Factoring:**
1. Immediate cash flow: Provides quick access to funds.
2. Reduced credit risk: The factor assumes the risk of bad debts.
3. Improved cash management: Helps manage receivables more effectively.
4. No debt incurred: It’s not a loan, so it doesn’t affect credit ratings.

**Disadvantages of Factoring:**
1. Cost: Can be expensive due to fees and interest rates.
2. Loss of control: The factor manages customer relationships and collections.
3. Dependency: Businesses may become reliant on factoring for cash flow.
4. Potential impact on customer perception: Customers may view factoring negatively.

Assistant Manager financial management

Ques:- What does a company need to do if the issue is greater than Rupees 100 crore?

Asked In :- Valethi, Arun Excello, IMFA, MNC Company, Shriram Transport Finance, Sand Martin Consultants, UCLAN, Redrow, Vontobel, IOOF,

Right Answer:
If the issue is greater than Rupees 100 crore, the company needs to comply with regulatory requirements, which may include obtaining approval from the board of directors, filing a prospectus with the Securities and Exchange Board of India (SEBI), and ensuring proper disclosures to investors.

Assistant Manager financial management

Ques:- Define Debenture Redemption Reserve (DRR)?

Asked In :- Peoplefy Infosolutions, British Telecom BT, DFO, Haldiram, Bajaj Allianz General Insurance Co, Muthoot Fincorp, Cleartrip, Godrej Consumer Products, Scorpio Tankers, London Stock Exchange Group,

Right Answer:
Debenture Redemption Reserve (DRR) is a mandatory reserve that a company must create to ensure that it has sufficient funds to repay debentures at maturity. It is typically a percentage of the debenture amount and is set aside from profits before distribution to shareholders.

financial management

Ques:- Define various fund based lending methods?

Asked In :- ISKPRO, Peoplefy Infosolutions, CPCL, Everest Bank, KKR, NBP National Bank of Pakistan, Pramata, Consero Global Solutions, Repos Energy, InCred,

Right Answer:
Fund-based lending methods include:

1. **Term Loans**: Loans provided for a specific period, typically for purchasing assets or financing projects.
2. **Working Capital Loans**: Short-term loans to finance day-to-day operations and manage cash flow.
3. **Overdrafts**: Allowing borrowers to withdraw more than their account balance up to a certain limit.
4. **Cash Credit**: A short-term facility allowing businesses to withdraw funds as needed, up to a pre-approved limit.
5. **Bills Discounting**: Financing against bills of exchange or promissory notes before their maturity date.
6. **Project Financing**: Loans provided for specific projects, secured by the project's cash flow and assets.

financial management

Ques:- How is the amount of assistance that a bank can provide for your working capital calculated?

Asked In :- ABN AMRO, Empower, Nations Trust Bank, NJ India, RGCA, Absyz Software Consulting, IndiaMART, Jindal Poly Films, Salarpuria Sattva Group, InvestoSure,

Right Answer:
The amount of assistance a bank can provide for working capital is typically calculated using the formula: Working Capital Requirement = Current Assets - Current Liabilities. The bank assesses your business's cash flow, inventory levels, receivables, and payables to determine the appropriate financing needed to cover operational expenses.

financial management

Ques:- What steps are involved in Factoring operations?

Asked In :- MDINDIA HEALTH INSURANCE TPA PVT, Williams Lea India, Panacea Medical Technologies, Waterleaf Consultants, Fintellix, MOIL, Tolani Maritime, National Stock Exchange of India, Jindal Poly Films, AK Capital Service,

Right Answer:
The steps involved in factoring operations are:

1. **Invoice Generation**: The business issues invoices to its customers for goods or services provided.
2. **Invoice Submission**: The business submits these invoices to a factoring company.
3. **Verification**: The factoring company verifies the invoices and the creditworthiness of the customers.
4. **Advance Payment**: The factoring company provides an advance payment (a percentage of the invoice amount) to the business.
5. **Collection**: The factoring company takes over the responsibility of collecting payments from the customers.
6. **Final Payment**: Once the customers pay the invoices, the factoring company pays the remaining balance to the business, minus a fee for their services.

financial management

Ques:- What is the most ethical decision you’ve ever had to make?

Asked In :- Bajaj Allianz, Birla Cement, India Cements, Mother Dairy, Nigerian Defence Academy, TTN, SMS India, B&M Stores, Cogito, Cineworld Cinemas,

Right Answer:

The most ethical decision I made was to report a financial discrepancy I discovered in my team's budget, even though it could have led to disciplinary action for my colleagues. I believed it was important to maintain integrity and transparency in our financial practices.

financial management

Ques:- What are the various forms in which dividends can be paid?

Asked In :- Razorpay-Startup, Online vape shop, AR Rahman Foundation, Arun Excello, Exxaro, Gujarat Alkalies and Chemicals GACL, Shriram Transport Finance, Happay, Sage Intacct, Andhra Pradesh State Skill Development,

Right Answer:
Dividends can be paid in the following forms:

1. Cash dividends
2. Stock dividends
3. Property dividends
4. Scrip dividends
5. Liquidating dividends

financial management

Ques:- Define a.) Fixed working capital b.) Variable working capital

Asked In :- DataTracks Services, KMCH, SpiceJet, OfBusiness, Gardiner & Theobald, Withers Worldwide, SEAT, LifeLabs, MNP LLP, Rajkot Nagarik Sahakari Bank,

Right Answer:
a.) Fixed working capital refers to the minimum amount of capital that a business needs to maintain its operations and cover its short-term obligations, regardless of the level of production or sales.

b.) Variable working capital refers to the amount of capital that fluctuates with the business's operational needs, such as inventory and accounts receivable, which change based on sales volume and production levels.

financial management

Ques:- What are the eligibility criteria for an unlisted company to make public issue?

Asked In :- Cadbury, Hindustan Unilever, KMCH, P&G Procter Gamble, ELYSIUM GROUP OF COMPANIES, FIAT India Automobiles, TJSB Bank, London Stock Exchange Group, Apollo Global Management, Collaborative Solutions,

Right Answer:
An unlisted company must meet the following eligibility criteria to make a public issue:

1. It should have a minimum net worth of ₹1 crore in the last three years.
2. It must have a minimum of 50% of its net worth in the form of tangible assets.
3. The company should have a track record of distributable profits for at least two out of the last three financial years.
4. It must comply with the regulations set by the Securities and Exchange Board of India (SEBI).

financial management

Ques:- What are bonus shares? What advantages does the company get by issuing them?

Asked In :- LIGHT PHARMA, DreamGains, UBA Bank, Varma & Varma, Jumio, Severn Trent, Revolution Bars Group, Principality Stadium, WCB Alberta, Connor Clark & Lunn,

Right Answer:
Bonus shares are additional shares given to existing shareholders for free, based on the number of shares they already own. The advantages for the company include improving liquidity in the market, enhancing shareholder satisfaction, and signaling financial strength without affecting cash reserves.

financial management

Ques:- Who decides the amount of premium on redemption & period of conversion for debentures?

Asked In :- Basware India, Protiviti Consulting, Circle Internet Financial, Consero Global, Nigerian Defence Academy, NJ India, Federal Bank India, Varma & Varma, FL Smidth, escalon,

Right Answer:
The terms of premium on redemption and the period of conversion for debentures are decided by the company's board of directors, typically based on the terms outlined in the debenture trust deed or offering document.

financial management

Ques:- Explain spontaneous source of financing variable working capital.

Asked In :- Corient Business Solutions, Eton, National Stock Exchange of India, Godrej Agrovet, Bridgestone Global, Village Hotel Club, Flannels, Camfed USA, Mr Price, HWL Ebsworth,

Right Answer:
Spontaneous sources of financing for variable working capital refer to funds that automatically arise from the day-to-day operations of a business without the need for formal borrowing. This includes accounts payable, accrued expenses, and other short-term liabilities that increase as the business grows and requires more working capital. These sources provide liquidity and help manage operational costs without incurring additional debt.

The Financial Management category on takluu.com is designed for job seekers and professionals preparing for interviews in finance, accounting, and business management roles. This section focuses on the fundamentals of managing an organization’s financial resources effectively to maximize profitability and growth.

Topics covered include financial planning, budgeting, capital structure, working capital management, investment analysis, risk management, and financial reporting. Candidates will find detailed explanations of concepts such as cost of capital, cash flow analysis, ratio analysis, and dividend policies.

Interview questions often test your understanding of both theoretical concepts and practical applications, such as:

“How do you calculate the cost of capital for a company?”
“Explain the importance of working capital management.”
“What are the different types of financial ratios, and how are they used?”

Our content simplifies complex financial theories with real-world examples, case studies, and problem-solving approaches to help you prepare confidently. Whether you’re a fresher or experienced professional, this category equips you with the knowledge needed to excel in technical interviews and business discussions.

At Takluu, we regularly update the Financial Management category with the latest trends, tools, and best practices in finance to ensure you stay relevant and competitive.

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