COFACE INTERVIEW

• INTRIDUCE YOURSELF
Hi, I’m Prajwal P S Naik from Chitradurga, currently residing in Rajarajeshwari Nagar,
Bengaluru. I recently completed my MBA in Finance and Business Analytics from BNM
Institute of Technology. During my course, I developed a strong foundation in financial
analysis, forecasting, capital budgeting, and data-driven decision-making.

As part of my academic journey, I interned at Mahendra Industries as a finance intern,

where I got hands-on experience in budgeting, reporting, and streamlining internal
financial processes. Additionally, I worked on a key project titled ‘Impact of Strategic Milk
Procurement on Profitability – A Study at KMF, Bellary’, where I analyzed procurement
strategies and their financial implications using Excel. I also built a Power BI dashboard for
credit utilization at CRED as part of a personal learning project, showcasing my analytical
and visualization skills.

Technically, I’m proficient in Advanced Excel, Power BI, SQL, and core finance tools like
financial reporting, capital budgeting, and forecasting. I also hold certifications in Capital
Budgeting, Taxation, Insurance Management, and Power BI Visualization.

My strengths include leadership, adaptability, time management, and clear

communication. Beyond academics and work, I love playing cricket, cooking, and
traveling, which keeps me energized and grounded.

I’m excited about the opportunity at Concentrix, where I hope to contribute my analytical
and financial skills in a dynamic and client-focused environment.

• INTERSHIP EXPERIENCE
I also did an internship at Mahendra Industries as a finance intern.
There, I helped with basic financial tasks like checking records, preparing reports, and
understanding how the company manages its expenses and income.

I got hands-on experience in using Excel for financial work and learned how finance
supports the overall business.
It helped me improve my practical knowledge and gave me more confidence in finance-
related work.

During my internship, I worked on a project about how procurement strategies affect the
company’s profit. I learned how KMF buys milk from farmers and how it impacts their
costs and earnings.
I used Excel to analyze data and prepare reports. I also understood how the company
manages its finances and maintains a good relationship with suppliers (like farmers).
It was a good learning experience where I got practical knowledge of finance and business
operations.

• TELL ME ABOUT THE COMPANY

Coface is a global leader in trade credit insurance, business information, and debt
collection services, with over 75 years of experience supporting approximately 100,000
companies across 200 markets. The company offers a comprehensive range of solutions,
including Trade Credit Insurance, Business Information, Debt Collection, Single Risk
Insurance, Surety Bonds, and Factoring, Its focus is not just on protection but also on
helping clients assess risks and opportunities in new and existing markets.

In India, Coface has been operational since 2001 through its subsidiary, Coface India Credit
Management Services Pvt. Ltd., with offices in Mumbai and Bangalore. The Indian team
comprises over 100 experts dedicated to providing clients with the confidence to navigate
uncertain and volatile environments.

• TELL ME ABOUT JOB ROLE

The Junior Doc Analyst plays a key role in supporting Coface’s credit insurance operations
by handling Business Information Support (BIS) tasks. This includes managing and
updating company data, identifying and deduplicating buyer files, and processing
information requests. The role also involves reviewing and writing Debtor Risk
Assessments (DRAs), supporting underwriters with relevant data, and ensuring that
company records are accurate and up to date.

It requires a good understanding of financial data, corporate structures, and credit risk
evaluation. Also, since accuracy and timeliness are crucial, attention to detail and strong
communication with internal teams like underwriting and information services is very
important.

What is Trade Credit Insurance?

Trade Credit Insurance is a financial product that protects businesses from the risk of non-
payment by their customers.
It covers a company when their buyers (domestic or international) don’t pay due to
insolvency, bankruptcy, or even political risk (in case of international trade).

Example: If Company A sells goods to Company B on credit, and Company B fails to

pay, Coface (as a credit insurer) will cover a large portion of the loss.

So, it helps companies:

• Reduce the risk of bad debts

• Trade confidently with new buyers or in new markets

• Get better access to financing, as insured receivables are more reliable

2. What is a Junior Doc Analyst?

A Junior Doc Analyst at Coface supports the Business Information Support (BIS) team by
managing and verifying company-related documents and financial information used in
credit risk assessments.

DOC likely stands for "Document" or "Documentary"—basically referring to all the data
and documents related to buyers, companies, and risk information.

3. What will be your role as a Junior Doc Analyst?

Your role will include:

• Updating and managing company data in Coface’s database

• Checking and verifying buyer information (like company name, address,

registration details, etc.)

• Creating or modifying company profiles (called buyer files)

• Eliminating duplicate entries and ensuring data accuracy

• Managing company financial links, group structures, and legal relationships

• Writing and reviewing DRAs (Debtor Risk Assessments) to help underwriters decide
whether a company is safe to offer credit to

• Supporting underwriters with detailed company information when they assess

exposure limits or credit coverage

• Uploading documents like financial statements, reports, etc., to internal systems

Basically, your work will ensure the data used for credit decisions is clean, accurate, and
up-to-date—a key part of reducing risk in credit insurance.
 Summary (for quick revision):

Term Meaning

Trade Credit
Protection against customer non-payment
Insurance

Junior Doc
Role focused on handling company data and financial info
Analyst

Likely means "document" or "documentary information" used for

DOC
credit analysis

Data validation, file creation, reviewing risk assessments, uploading

Main tasks
reports, supporting underwriters

What makes you interested in the company and the job role?
(Fresher version)
"As a fresher, I'm looking for a company where I can start my career with a strong learning
foundation—and Coface is a well-known global company in the credit insurance and
financial risk sector. I'm really impressed by how Coface helps businesses make safe trade
decisions and manage risk, and I would love to be a part of that mission.

This role as a Junior Doc Analyst matches my academic background in finance and
analytics. During my MBA and internship, I worked on financial data, company reports,
and gained hands-on experience with tools like Excel and SQL. I’m excited about this role
because it involves real business data, risk analysis, and supports decision-making—all
areas I'm passionate about and eager to grow in.

I believe Coface will provide the right environment to build my skills and learn from
experienced professionals while contributing positively to the team."

Liquidity Ratios
Purpose:
Liquidity ratios help us understand if a company has enough money or assets that can be
quickly turned into cash to pay off its short-term bills and debts (like salaries, rent,
suppliers, etc.).
1⃣ Current Ratio

Simple Definition:
It shows if a company has enough current assets (cash, accounts receivable, inventory) to
cover its current liabilities (bills to pay within a year).

Formula:
Current Ratio = Current Assets ÷ Current Liabilities

Ideal Ratio:
1.5 to 2 is considered good.
It means the company has ₹1.5 to ₹2 of assets for every ₹1 of liability.

Example:

• Current Assets = ₹2,00,000

• Current Liabilities = ₹1,00,000

• Current Ratio = 2,00,000 / 1,00,000 = 2 (Good liquidity)

Quick Ratio (Acid Test Ratio)

Simple Definition:
It’s like the current ratio but removes inventory because inventory may take time to sell. It
focuses only on the most liquid assets like cash, bank balance, and accounts receivable.

Formula:
Quick Ratio = (Current Assets - Inventory) ÷ Current Liabilities

Ideal Ratio:
1 or above is good.
It means the company can easily pay its short-term debts without selling inventory.

Example:

• Current Assets = ₹2,00,000

• Inventory = ₹50,000

• Current Liabilities = ₹1,00,000

• Quick Ratio = (2,00,000 - 50,000) / 1,00,000 = 1.5 (Healthy)

 Summary Table:

Ideal
Ratio Formula What It Shows
Range

Current Overall ability to pay short-

Current Assets ÷ Current Liabilities 1.5 – 2
Ratio term debts

(Current Assets - Inventory) ÷ Ability to pay using most

Quick Ratio 1 or more
Current Liabilities liquid assets

Profitability Ratios
Purpose:
These ratios show how well a company is making profits. In simple terms, they tell us how
much money the company earns compared to its sales, assets, or shareholder
investments.

1⃣ Gross Profit Margin

Simple Definition:
Shows how much profit a company makes after removing the cost to produce goods (raw
materials, labor, etc.).

Formula:
Gross Profit Margin = (Gross Profit ÷ Revenue) × 100
Gross Profit = Revenue – Cost of Goods Sold (COGS)

Ideal %:
Generally 50% or higher is good (varies by industry).

Example:

• Revenue = ₹5,00,000

• COGS = ₹3,00,000

• Gross Profit = ₹2,00,000

• GPM = (2,00,000 ÷ 5,00,000) × 100 = 40% (Okay but could be better)

2⃣ Net Profit Margin

 Simple Definition:
It shows how much of the total revenue is left as profit after all expenses like rent, salaries,
interest, and tax.

Formula:
Net Profit Margin = (Net Profit ÷ Revenue) × 100

Ideal %:
10% or more is considered good (varies by industry).

Example:

• Revenue = ₹5,00,000

• Total Expenses = ₹4,50,000

• Net Profit = ₹50,000

• NPM = (50,000 ÷ 5,00,000) × 100 = 10%

3⃣ Return on Equity (ROE)

Simple Definition:
It shows how much profit the company is generating using the shareholders' money.

Formula:
ROE = (Net Profit ÷ Shareholders’ Equity) × 100

Ideal %:
15% or more is considered strong.

Example:

• Net Profit = ₹1,50,000

• Shareholder’s Equity = ₹10,00,000

• ROE = (1,50,000 ÷ 10,00,000) × 100 = 15%

4⃣ Return on Assets (ROA)

Simple Definition:
Shows how much profit a company earns for every rupee it has in assets.

Formula:
ROA = (Net Profit ÷ Total Assets) × 100
 Ideal %:
5% or more is usually good.

Example:

• Net Profit = ₹1,00,000

• Total Assets = ₹20,00,000

• ROA = (1,00,000 ÷ 20,00,000) × 100 = 5%

5⃣ Earnings Per Share (EPS)

Simple Definition:
EPS tells how much profit is earned per share of stock. It's useful for investors to know
how much they earn for each share they own.

Formula:
EPS = Net Profit After Tax ÷ Number of Outstanding Shares

Ideal EPS:
There is no fixed "ideal" EPS — higher is better. Compare with past years or other
companies in the same industry.

Example:

• Net Profit = ₹2,00,000

• No. of Shares = 10,000

• EPS = 2,00,000 ÷ 10,000 = ₹20 per share

Summary Table:

Ideal
Ratio Formula What It Tells
Benchmark

Gross Profit Profit after production

(Gross Profit ÷ Revenue) × 100 50% or more
Margin costs

Net Profit Final profit after all

(Net Profit ÷ Revenue) × 100 10% or more
Margin expenses

Return on (Net Profit ÷ Shareholder's

15% or more Return to shareholders
Equity Equity) × 100
 Ideal
Ratio Formula What It Tells
Benchmark

Return on Profit earned from

(Net Profit ÷ Total Assets) × 100 5% or more
Assets assets

Earnings Per Higher is Profit per individual

Net Profit ÷ No. of Shares
Share better share

Efficiency Ratios (Activity Ratios)

Purpose:
These ratios show how effectively a company uses its assets and resources to generate
sales or revenue.

1⃣ Inventory Turnover Ratio

Simple Definition:
Tells how many times a company sells and replaces its inventory during a year.

Formula:
Inventory Turnover = Cost of Goods Sold (COGS) ÷ Average Inventory

Ideal Range:
5 to 10 times per year (depends on industry)

Example:

• COGS = ₹5,00,000

• Average Inventory = ₹1,00,000

• Inventory Turnover = 5,00,000 ÷ 1,00,000 = 5 (Efficient)

2⃣ Asset Turnover Ratio

Simple Definition:
Shows how efficiently the company uses its total assets to generate sales.

Formula:
Asset Turnover = Net Sales ÷ Average Total Assets
 Ideal:
1 or more is considered good.

Example:

• Net Sales = ₹10,00,000

• Average Total Assets = ₹5,00,000

• Asset Turnover = 10,00,000 ÷ 5,00,000 = 2

3⃣ Accounts Receivable Turnover Ratio

Simple Definition:
Tells how quickly a company collects money from its customers (credit sales).

Formula:
AR Turnover = Net Credit Sales ÷ Average Accounts Receivable

Ideal:
Higher is better – shows fast collection.
7 to 10 times a year is good.

Example:

• Net Credit Sales = ₹7,00,000

• Average Accounts Receivable = ₹1,00,000

• AR Turnover = 7,00,000 ÷ 1,00,000 = 7

Leverage (Solvency) Ratios

Purpose:
These ratios show how much the company depends on debt and whether it can repay
long-term obligations.

1⃣ Debt-to-Equity Ratio

Simple Definition:
Shows how much debt a company uses for every rupee of equity.

Formula:
Debt-to-Equity = Total Debt ÷ Shareholders’ Equity
 Ideal:
1 or less is considered safe (lower is better).

Example:

• Total Debt = ₹5,00,000

• Shareholders’ Equity = ₹10,00,000

• D/E = 5,00,000 ÷ 10,00,000 = 0.5 (Safe level of debt)

2⃣ Debt-to-Asset Ratio

Simple Definition:
Tells what percentage of the company’s assets is funded by borrowed money.

Formula:
Debt-to-Asset = Total Debt ÷ Total Assets

Ideal:
Less than 0.5 (or 50%) is considered safe.

Example:

• Total Debt = ₹4,00,000

• Total Assets = ₹10,00,000

• D/A = 4,00,000 ÷ 10,00,000 = 0.4 (or 40%)

3⃣ Interest Coverage Ratio

Simple Definition:
Shows how easily the company can pay interest on its loans from its earnings.

Formula:
Interest Coverage = EBIT ÷ Interest Expense
EBIT = Earnings Before Interest & Taxes

Ideal:
3 or more is considered healthy.

Example:

• EBIT = ₹1,50,000
 • Interest Expense = ₹30,000

• Interest Coverage = 1,50,000 ÷ 30,000 = 5 (Very good)

Summary Table:

Ideal
Ratio Formula What It Shows
Value/Range

5 – 10 Speed of selling
Inventory Turnover COGS ÷ Avg Inventory
times/year inventory

Net Sales ÷ Avg Total How well assets

Asset Turnover 1 or more
Assets generate revenue

Accounts Receivable Net Credit Sales ÷ Avg 7 – 10 How quickly money is

Turnover Receivables times/year collected

Total Debt ÷ Reliance on debt vs

Debt-to-Equity 1 or less
Shareholders’ Equity equity

Less than 0.5 Portion of assets funded

Debt-to-Asset Total Debt ÷ Total Assets
(50%) by debt

Ability to pay interest

Interest Coverage EBIT ÷ Interest Expense 3 or more
from earnings

Leverage

Definition:
Leverage means using borrowed money (debt) to increase the potential return of a
business or investment.

Example:
If a company has ₹1,00,000 and borrows ₹2,00,000 more, it can invest ₹3,00,000 in total.
This can increase profits — but also increases risk.

Types:

• Operating Leverage: Fixed operating costs impact profits.

• Financial Leverage: Use of debt to finance assets.

2⃣ Working Capital

Definition:
Working capital shows the company’s short-term financial health. It’s the money available
to run daily operations.

Formula:
Working Capital = Current Assets – Current Liabilities

Example:

• Current Assets = ₹5,00,000

• Current Liabilities = ₹3,00,000

• Working Capital = ₹2,00,000 (Healthy)

3⃣ Balance Sheet

Definition:
It’s a financial statement showing a company’s assets, liabilities, and equity at a specific
point in time.

Formula:
Assets = Liabilities + Shareholder’s Equity

Types:

• Classified Balance Sheet (organizes into categories)

• Vertical/Horizontal Format

• Consolidated Balance Sheet (for a group of companies)

4⃣ Financial Analysis

Definition:
It means examining financial data (like balance sheets, income statements) to understand
a company’s performance and make decisions.

Why Use It?

• To check profitability

• To plan for future

 • To evaluate investments or loans

Example:
Analyzing debt-to-equity ratio to check if the company is overusing debt.

5⃣ Solvency & Liquidity (Types & Difference)

Solvency: Long-term ability to pay debts.

Liquidity: Short-term ability to pay bills.

Types of Solvency Ratios:

• Debt-to-Equity Ratio

• Interest Coverage Ratio

Types of Liquidity Ratios:

• Current Ratio

• Quick Ratio

6️⃣ Depreciation

Definition:
The reduction in value of an asset over time due to wear and tear.

Example:
A machine bought for ₹5,00,000 loses ₹50,000 value every year.

Types:

• Straight-Line Method

• Declining Balance Method

• Units of Production Method

7⃣ Merger

Definition:
Two companies combine to form one new company.

Example:
Company A + Company B = Company AB
8️⃣ Acquisition

Definition:
One company buys another company.

Example:
Company A buys Company B, and B becomes part of A.

9️⃣ Amalgamation

Definition:
Two or more companies combine to form a completely new company.

Example:
Company A + B = Company C (A and B no longer exist)

Operating System Activity (Operating Activities)

Definition:
These are the core business activities that generate revenue, like selling products, paying
wages, etc.

Example:
Cash received from customers, cash paid to suppliers.

1⃣1⃣ Is SEBI (Securities Board) an Operating Activity?

No. SEBI is a regulatory authority.

Its compliance-related costs can be operating expenses for a business, but SEBI itself is not
an operating activity.

1⃣2⃣ Preferred Capital (Preferred Shares)

Definition:
A type of share that gives fixed dividends and priority over common shares, but usually no
voting rights.

Example:
A company issues preferred shares offering 7% annual return.
1⃣3⃣ Cash Flow and Its Types

Definition:
Cash flow is the movement of cash in and out of the business.

Types:

1. Operating Activities: From daily business (sales, salaries).

2. Investing Activities: Buying/selling assets, investments.

3. Financing Activities: Loans, dividends, share capital.

1⃣4⃣ Balance Sheet Types (again for clarity)

Type Description

Classified Divides into assets, liabilities in detailed sections

Vertical Listed from top to bottom (most common)

Horizontal Compares two years side by side

Consolidated Combines balance sheets of parent & subsidiary companies

What are the sources of cash in a cash flow statement?

Definition: Cash Flow Statement shows how cash is generated and used in a business
through three activities:

• Operating Activities (e.g., cash from sales, payment to suppliers)

• Investing Activities (e.g., sale/purchase of assets)

• Financing Activities (e.g., issuance of shares or repayment of loans)

Example: If a company earns Rs. 10 lakh from sales, buys a machine for Rs. 3 lakh, and
takes a loan of Rs. 5 lakh — these are sources of cash.

2. What is working capital?

Definition: Working Capital = Current Assets - Current Liabilities

It indicates short-term financial health.

Example: If a company has Rs. 5 lakh in current assets and Rs. 3 lakh in current liabilities,
working capital = Rs. 2 lakh.
3. Difference between solvency & liquidity (with examples)

• Liquidity: Ability to meet short-term obligations.

• Solvency: Ability to meet long-term obligations.

Example:

• Liquidity Ratio – Current Ratio (Ideal: 1.5 – 2)

• Solvency Ratio – Debt to Equity (Ideal: 1 – 1.5)

4. What is fixed capital?

Definition: Investment in long-term assets like machinery, land, or building.

Example: Buying a factory building worth Rs. 20 lakh is fixed capital investment.

5. What is capital structure?

Definition: The mix of debt and equity used by a company to finance operations.

Example: 6️0% equity + 40% debt = company’s capital structure.

6️. What is corporate action?

Definition: Events initiated by a company affecting shareholders.

Examples: Dividends, stock splits, bonus shares, rights issues.

7. Difference between depreciation & amortization

• Depreciation: Decrease in value of tangible assets (e.g., machinery).

• Amortization: Decrease in value of intangible assets (e.g., patents).

8️. What are mergers & amalgamations?

• Merger: One company is absorbed by another.

• Amalgamation: Two companies combine to form a new one.

Example: Vodafone + Idea = Vodafone Idea (Amalgamation)

9️. Types of ratios & why do we calculate ratios?

• Liquidity Ratios (e.g., Current Ratio)

• Profitability Ratios (e.g., ROE, Net Profit Margin)

• Solvency Ratios (e.g., Debt to Equity)

• Efficiency Ratios (e.g., Inventory Turnover)

Purpose: To analyze financial health and performance.

10. Explain any one ratio (e.g., Current Ratio)

Formula: Current Assets ÷ Current Liabilities

Example: If Current Assets = Rs. 4 lakh and Liabilities = Rs. 2 lakh, Ratio = 2 (Good
liquidity).

11. Why did you select this company?

Sample answer:

• It’s a reputed company.

• It’s a startup with growth potential.

• My friend suggested and he’s happy with the company culture.

• I like the role and environment.

12. Microeconomics vs. Macroeconomics

• Microeconomics: Study of individual units (consumers, firms).

• Macroeconomics: Study of economy as a whole (GDP, inflation).

13. What do you mean by insurance?

Definition: It’s a financial product to protect against future uncertainties.

Example: Health insurance covers medical expenses.

14. What are credit & debit?

 • Debit: Increase in assets or expense.

• Credit: Increase in liabilities or income.

15. What is a financial statement?

• Balance Sheet

• Profit & Loss (P&L)

• Cash Flow Statement

Purpose: Shows company’s performance and financial position.

16️. What are your financial priorities?

Example:

• Build emergency fund

• Save for investment

• Reduce liabilities

17. What is goodwill?

Definition: Intangible asset arising when a company is purchased for more than the value
of its net assets.

18️. Difference between tangible & intangible assets

• Tangible: Physical (e.g., machinery)

• Intangible: Non-physical (e.g., brand, patent)

19️. What is preferred capital?

Definition: Capital from issuing preference shares which get fixed dividends before equity
shareholders.

20. Types of Cash Flow

• Operating: Day-to-day activities

 • Investing: Buying/selling assets

• Financing: Loans, issuing shares

21. Types of Balance Sheet

• Horizontal Format: Assets on left, liabilities on right

• Vertical Format: Assets and liabilities listed top to bottom