MOCK INTERVIEW OF A CA CANDIDATE

FROM BIKANER
BY :
DR. T.K. JAIN
AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
SIVAKAMU VETERINARY HOSPITAL ROAD
BIKANER
www.afterschool.tk
9414430763
AFTERSCHOOOL promotes social entrepreneurship, spiritual entrepreneurship, career guidance,
and youth activivism.
for the benefit of other such aspiring stars
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Introduce yourself?
I am ............ I will start with my academic qualification. I have completed X and XII from RBSE. I
have done PE with B.Com. I completed my CA in 2010. I have completed my articleship where I
learned about how to prepare tax returns for comnpanies. I learned the process of statutory audit. I
would like to tell about my self. I am a very simple, honest person. I am full of integrity and curisity
of knowledge.

(the candidate is advised to start with the recent achievements first. The candidate didnt tell about
the CA firm and what was the leranings from the articleship.).

What is your career goal?

I want to have a position of accountability and responsibility. I want to reach a position where I can
increase my knowledge day by day.
(The reply should be more detailed and it should clarify the career aspirations of the candidate. The
interviewer should come to know about the career aspirations of the candidate and he should be able
to visualise a match between what the company is offering and what the candidate wants, a better
reply should include the followings :
1. expectations of the candidate
2. time bound goals of the candidate
3. contribution by the candidate to the organisation and to the society in general
4. priorities of the candidate
for example : I have the goal of becoming a finance executive in an organisation of repute in next
10 years, where I can exercise my skills of financial analysis, accounting and reporting in the
development of organisational resource utilisation capabilities. I want to use my skills and expertise
in developing the capabilities of the organisations in reducing costs of capital and in improving its
overall performance with regards to expectations of shareholders and other stakeholders. I thing that
I will be able to derive job satisfaction by making contribution to the organisation's growth in these
sectors).

Why do you want to join our organisation?

Your organisationi s a market research company, I am always interested in a market research work,
so I want to join your organisation.
(the candidate is being interviewed for finance and accouting assignments, and would not have
much exposure in marketing research, therefore this type of reply only shows that the candidate is
not aware of his role in the organisation. The candidate doesnt have expertise in research. However,
the candidate, can still justify it that the candidate can analyse secondary data regarding costs,
distribution, financial information regarding marketing aspects etc.).
What are your achievements ?

During my articleship, I worked in a firm. The staff were not cooperative, but I worked on my own
(this shows that the candidate doesnt have very good team working ability. The candidate needs to
groom his teambuilding skills and should learn how to take work from others. The candidate should
therefore not be selected, as no individualist can work in an organisation. However, the candidate
can still prove his candidature by justifying that by his accomplishment, there was change in other
employees and the overall work culture improved. )

What have been your favourite subjects ?

My favourite subject is accounting. I am a CA, so I am always interested in accounting work.

(the candidate need to be more focussed. Accounting is a very broad area, we need more detailed
information about specific subjects within accounting).

What is the latest development in accounting?

There is a new IFRS is going to apply. ICAI is planning to introduce similar AS thus IFRS will be
implemented in India.
(the candidate has not given detailed deadlines regarding IFRS Implementation, GAAP
implementation, introduction of new AS so we expect more detailed and systematic answer).
What are the latest issues regarding taxation and other government dues?
Latest issues are GST,
(the entire Tax laws are going to be revamped and there are talks that new Income tax law will
replace the old law, the candidate is silent about these).
what is black money and what is its impact ?

Black money is the money on which tax is not paid and it is avoided from government. It has
negative impact on the economy.
(the candidate should be vocal about all the negative impacts of black money and should also
suggest measures to remove it).

What should be the composition of board of directors? What are the issues regarding corporate
governance?

(the candidate didnt give any reply, but ideally at least 50% directors must be external independent
directors. The directors must have expertise in some or other sector. They must have expertise in
accounting, law, economics etc. They must have proved background of creditibility, honesty and
integrity).

How can a company minimise its cost of capital ?

Company can minimise its cost of capital by minimising variable costs and by using the funds
which cost less to the firm. It should use the capital which costs less. It should use loans and other
sources of funds which are available in market in less cost.

Which funds are available in less cost?

The company should use IPO and issue debentures. By raising loans from the banks, the company
can reduce cost of capital. IPO and FPO will reduce the cost of capital.

(The candidate is not aware that IPO have higher cost of capital in comparison to debt. The
candidate is also not aware about various sources of funds. The candidate thinks that Equity and
Debentures can reduce the cost of capital, which is wrong. When the priority is to reduce cost of
capital, equity cannot be the first choice).

Do you think that IPL shold come within the purview of for profit organisation and should be taxed
as a profit making entity? If yes, how should IPL be taxed?
The profit which are earned by IPL and their fund providers, should be assessed for tax. We have to
see their revenue and their expenditure.
(the candidate didnt give reply about IPL being a profit or a non-profit organisation, and what
difference will it make)

You belong to Bikaner, please describe the main industries of Bikaner and its distinguishing
features?
The main industries are wool industry, POP industry, Ceramics industry, Bhujia and Namkeen
industry.

The wool of Bikaner is exported. It is a very popular industry

(the candidate is not aware that wool is not exported, but carpets made by this wool is exported. The
candidate didnt tell about distinguishing features of Bikaner).
Is there excise on these industries, what should be the system?
Yes,
When they manufacture taxable products, at the time of sale, they have to pay excise duty.
If the product is considered manufactured product, then there is tax when it is sold.
(the candidate is now aware that there is no excise on Bhujia & Namkeen industry, further, excise is
not linked to sale, but it is linked to removal from the place of manufacture).

Which Indian corporate house excites you and why?

I like reliance industries, because its area of work is very wide, it is in retail, oil and many sectors.
We can learn a lot from its entrepreneurial success.

Why is the average PE of Indian companies higher than that of other similar countries ?
PE ratio is the profit / equity. The PE ratio is higher when profit is greater.

(the candidate is not aware of formula of PE ratio. The candidate is not able to analyse and
compare international scenario).

If you have to analyse a balance sheet, how would you start ?

We will start with current ratio and debt equity ratio. We will see the fixed assets of the company
and look at the working capital of the company. What are the sources of funds? What are our
liabilities? We will look at sources of capital, and profitability. We will calculate the profit / sales
ratio.

(the candidate is not aware that profit / sales ratio cannot be analysed from a balance sheet, it
requires profit and loss statement).

Who is your ideal personality and what have you learned from that person?
I like Sachin Tendulkar the most. He is down to earth to his game. He is very hard working person.
He always focuses on his work. He never his work. He is always committed to his work and tries to
give the best. I like these qualities.

What is your favourite movie and what lesson did you get from it?
My favourite movie is Chak De India, this movie has given lessons on team spirit, and achievement
of goals through collective efforts. It is really inspiring for people. This movie gives us inspiration
about how to work.

What is your favourite book and what did you learn from it ?
Two States written by Chetan Bhagat is my favourite book. It gives us lessons of the life. We must
have passion for life. We must always try to solve the problems and should not run away from the
problems. We should not be selfish and should consider others also.

What is window dressing?

It is a way of marketing. We present our product as a show case at our shop.

(the candidate is not aware about terms relating to the profession of CA even. Window dressing
means presenting balance sheet and annual accounts in such manner that it becomes impressive.
The candidate is not even aware of it. It shows that the candidate has not read anything out of the
text books).