Find Interview Questions for Hindustan Unilever

Right Answer:
The vendor rating process involves evaluating and scoring suppliers based on specific criteria such as quality, delivery performance, pricing, and service. This typically includes the following steps:

1. **Define Criteria**: Establish the metrics for evaluation (e.g., quality, delivery time, cost, responsiveness).
2. **Data Collection**: Gather data on vendor performance through reports, feedback, and audits.
3. **Scoring**: Assign scores to vendors based on their performance against the defined criteria.
4. **Analysis**: Analyze the scores to identify strengths and weaknesses of each vendor.
5. **Feedback**: Provide feedback to vendors regarding their performance.
6. **Action Plan**: Develop improvement plans for underperforming vendors and recognize top performers.
7. **Review and Update**: Regularly review and update the rating process to ensure it remains relevant and effective.

Right Answer:
The Procure to Pay (P2P) cycle is the process that involves the steps from purchasing goods or services to making the payment for them. It typically includes the following stages:

1. **Need Identification** - Recognizing the need for a product or service.
2. **Supplier Selection** - Choosing a supplier based on criteria like price and quality.
3. **Purchase Order Creation** - Issuing a purchase order to the selected supplier.
4. **Order Acknowledgment** - Supplier confirms receipt and acceptance of the order.
5. **Goods/Services Receipt** - Receiving the ordered items or services.
6. **Invoice Receipt** - Receiving the invoice from the supplier.
7. **Invoice Approval** - Verifying and approving the invoice for payment.
8. **Payment Processing** - Making the payment to the supplier.

This cycle ensures efficient procurement and payment management within an organization.

Right Answer:
Banking is the business of accepting deposits, providing loans, and offering financial services to individuals and businesses.

Right Answer:
To calculate safety stock for consumption-based planning, use the formula:

Safety Stock = Z * σL

Where:
- Z = Z-score (based on desired service level)
- σL = Standard deviation of demand during the lead time

You can also consider average demand and lead time variability in your calculations.

Right Answer:
Normal terms and conditions in an agreement with a supplier typically include:

1. **Scope of Work**: Description of goods/services provided.
2. **Pricing and Payment Terms**: Cost, payment schedule, and methods.
3. **Delivery Terms**: Delivery dates, locations, and responsibilities.
4. **Quality Standards**: Specifications and quality requirements.
5. **Warranties and Guarantees**: Assurance of product/service quality.
6. **Confidentiality**: Protection of sensitive information.
7. **Termination Clause**: Conditions under which the agreement can be ended.
8. **Liability and Indemnification**: Responsibilities for damages or losses.
9. **Dispute Resolution**: Process for resolving conflicts.
10. **Compliance with Laws**: Adherence to relevant laws and regulations.

Right Answer:

A Public Limited Company (PLC) is a type of company whose shares are publicly traded on a stock exchange. It has limited liability, meaning shareholders’ personal assets are protected, and it must follow strict regulatory and disclosure requirements. Anyone can buy or sell its shares freely.

Right Answer:
The methods used to ascertain risk in capital budgeting decisions include:

1. Sensitivity Analysis
2. Scenario Analysis
3. Monte Carlo Simulation
4. Break-even Analysis
5. Risk-adjusted Discount Rate
6. Payback Period Analysis
7. Decision Tree Analysis

Right Answer:
Explicit costs are direct, out-of-pocket expenses that a business incurs, such as wages, rent, and materials. Implicit costs are the indirect costs that represent the opportunity cost of using resources in one way instead of the next best alternative, such as the income foregone from not using owned resources in a different investment.

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).

Right Answer:

The Current Ratio is a liquidity ratio calculated as:

Current Ratio=Current AssetsCurrent Liabilities\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}Current Ratio=Current LiabilitiesCurrent Assets​

It indicates a company’s ability to pay its short-term debts using its short-term assets. A ratio above 1 generally means good short-term financial health.