Here’s a list of interview questions tailored for campus placements for a Public Sector Undertaking (PSU) finance role. These questions assess fundamental finance and accounting knowledge, understanding of public sector regulations, and key competencies needed in a government or semi-government finance setting.
Basic Finance and Accounting Knowledge
- What are the primary financial statements, and what is the purpose of each?
- Explain the difference between capital expenditure and revenue expenditure.
- How would you explain the concept of working capital, and why is it important?
- What are the differences between financial accounting and management accounting?
- Explain the purpose of a cash flow statement and the types of cash flows.
- How do you calculate the debt-to-equity ratio, and why is it significant for PSUs?
- What is the importance of budgeting in public sector organizations?
- Explain the concept of cost-benefit analysis and its relevance in PSU projects.
- Describe the key components of a balance sheet.
- What is the difference between gross profit and net profit?
Public Sector-Specific Financial Knowledge
- What do you understand by the term “public finance,” and how is it different from private finance?
- How are funds allocated and managed within a PSU or government department?
- What are some key considerations in financial management for a PSU?
- Explain the concept of fiscal deficit and how it impacts public sector organizations.
- How does public sector accounting differ from private sector accounting?
- What are the main sources of revenue for PSUs?
- What is the role of the Comptroller and Auditor General (CAG) in PSU audits?
- Can you explain the concept of government grants and subsidies?
- What are the implications of cost overruns on PSU projects?
- How do you think PSUs contribute to the country’s economic growth?
Budgeting and Financial Planning
- What is zero-based budgeting, and how can it be applied in PSUs?
- How would you approach the preparation of a budget for a PSU?
- Explain the importance of forecasting in the financial planning process.
- What is variance analysis, and how would it be useful for a PSU?
- How do you assess the financial feasibility of a project?
- Describe a situation where cost control might be necessary in a public sector project.
- How would you manage cash flow in a capital-intensive PSU?
- What role does inflation play in public sector budgeting?
- Explain the process of fund allocation in a PSU for multi-departmental projects.
- How would you ensure accountability and transparency in PSU budget planning?
Regulatory and Compliance Knowledge
- What do you know about the Companies Act, and how is it relevant to PSUs?
- What are some key regulations that PSUs need to comply with?
- Explain the concept of statutory audit and its importance in PSUs.
- How do you ensure compliance with government policies in financial management?
- What is the role of internal audit in public sector finance?
- How would you handle a scenario where a PSU’s spending exceeds the budget allocation?
- Describe how you would ensure adherence to corporate governance standards in a PSU.
- What are IFRS, and are they applicable to PSUs in India?
- Explain how you would maintain financial transparency and accountability.
- What do you understand by ethical accounting practices in the public sector?
Project Finance and Risk Management
- Explain the concept of project finance and its significance in large public sector projects.
- What are some common financial risks faced by PSUs, and how would you mitigate them?
- How would you conduct a financial appraisal of a new project?
- What is the importance of the capital budgeting process in PSUs?
- Describe how you would assess the financial viability of a long-term infrastructure project.
- How would you address risks related to cost escalation in public sector projects?
- What do you know about Public-Private Partnerships (PPP), and why are they relevant for PSUs?
- How would you manage the financial aspects of a PSU project with uncertain cash flows?
- Explain how cost-benefit analysis helps in decision-making for PSU projects.
- What methods would you use to evaluate project performance in the public sector?
Analytical and Problem-Solving Skills
- Describe a time when you had to analyze financial data to make a recommendation.
- How would you prioritize tasks if faced with multiple project deadlines?
- If you discovered an error in a financial report, how would you address it?
- How would you analyze the financial performance of a PSU?
- Explain the approach you would take to improve operational efficiency in a PSU finance team.
- What steps would you take if you found that a project was over budget?
- How would you handle a situation where you identified non-compliance with a financial regulation?
- Describe how you would approach cost-cutting measures without compromising project quality.
- How do you stay updated on changes in financial regulations?
- What steps would you take to ensure the accuracy of a financial analysis?
Behavioral and Situational Questions
- Why are you interested in working in the public sector as opposed to the private sector?
- Describe a time when you worked as part of a team. What role did you play?
- How do you handle criticism or feedback from supervisors?
- What do you consider your greatest strength in finance?
- Describe a situation where you had to meet a strict deadline. How did you manage it?
- How do you plan to contribute to a PSU’s objectives and goals?
- What are some challenges you anticipate in a PSU finance role, and how would you address them?
- How do you maintain accuracy and attention to detail in your work?
- Where do you see yourself in the next five years, especially in a public sector career?
- How would you handle a conflict between team members over financial decisions?
These questions cover core financial knowledge, public sector-specific concepts, budgeting, compliance, and analytical abilities, as well as personal traits and adaptability essential for a finance role in a PSU.