Sundaram Finance Interview Questions and Answers

Equity represents ownership in a company while debt represents borrowed money that needs to be repaid with interest.

• Equity represents ownership in a company while debt represents borrowed money that needs to be repaid with interest.

• Equity holders have a claim on the company's assets and profits, while debt holders have a claim on the company's cash flows.

• Equity is typically riskier than debt as equity holders are ...read more

Equity market refers to the market where shares of publicly traded companies are bought and sold.

• Equity market is also known as the stock market or share market.

• It provides a platform for companies to raise capital by selling shares to investors.

• Investors can buy and sell shares of publicly traded companies through stock exchanges.

• The value of shares in the equity market fluctuates based on supply and demand.

• Equit...read more

A cash flow statement is a financial statement that shows the inflows and outflows of cash during a specific period.

• It provides information about the cash generated from operating activities, investing activities, and financing activities.

• Operating activities include cash received from sales, payment to suppliers, and payment to employees.

• Investing activities include cash used for purchasing or selling assets like...read more

Goodwill is the intangible value of a business based on its reputation, customer loyalty, and brand recognition.

• Goodwill is an intangible asset that cannot be easily quantified.

• It is based on the reputation of the business and its ability to generate future earnings.

• Goodwill can be created through strong customer relationships, brand recognition, and positive public perception.

• It is often included in the valuation...read more

To increase customer base, we can focus on improving customer experience, offering promotions, expanding marketing efforts, and building partnerships.

• Improve customer experience through better service and personalized interactions

• Offer promotions such as discounts, loyalty programs, and referral incentives

• Expand marketing efforts through social media, email campaigns, and targeted advertising

• Build partnerships wit...read more

Yes, the company has reported positive net income.

• The company's financial statements show a positive net income figure.

• This indicates that the company's total revenue exceeds its total expenses.

• Positive net income is a good sign for investors and stakeholders.

• It can indicate that the company is profitable and financially stable.

• Examples of companies with positive net income include Apple, Amazon, and Microsoft.

Composite cost of capital refers to the weighted average cost of all the sources of financing used by a company.

• It takes into account the cost of debt, preferred stock, and common equity.

• Weighted average cost of capital (WACC) is a common measure of composite cost of capital.

• It is used to determine the minimum rate of return a company must earn on its investments to satisfy its investors.

• Higher composite cost of c...read more

Sundaram Finance faces competition from banks, NBFCs, and other financial institutions.

• Banks like HDFC Bank, ICICI Bank, and Axis Bank offer similar financial services.

• NBFCs like Bajaj Finance, Mahindra Finance, and L&T Finance are also competitors.

• Other financial institutions like LIC Housing Finance and PNB Housing Finance are also in the market.

• Sundaram Finance also competes with regional players like Cholamand...read more