IIM Admission 2022: Akash Shares his PI WAT Experience at IIM Ahmedabad

AWT Tips for IIM Ahmedabad Admission

We had to agree or disagree with the author’s assessment and give supporting arguments for our views. The AWT process is very different from the WAT process conducted by other IIMs. One must check the GMAT AWT writings for better clarity on the AWT process. Since the topic was very notional, there were no right or wrong answers for the same. For such topics, one must present the points coherently.

The space below mentions the questions asked in the personal interview at IIM Ahmedabad. I have termed the members of the interview panel as M and F for male member and female member respectively. I will mention my answer against the letter A.

A: Very good afternoon everyone, how are you doing?

M/F: We’re good Akash. How are you? Please take your seat.

A: I’m brilliant, thank you.

M: So you were working at HPCL and left it recently. What were you doing there?

A: I explained my role in 3-4 sentences. I avoided adding my achievements there and focused on my role in the job.

M: So why did you leave HPCL? It is a big company and you left for a small NBFC. Why?

A: Sir, in the fifth semester, I took Managerial Economics as an elective subject. Post which, I Instantly got fond of the subject and was fascinated by the world of finance. Therefore, I decided to pursue a career in Finance. While working for HPCL, I qualified the CFA (Chartered Financial Analyst) Level 1 exam. Later, I got a job at Electronica Finance Limited.

M: Alright. So what does EFL do?

A: EFL is an NBFC and is a pioneer in machine financing. EFL is diversifying into other categories of financing such as loans.

M: So what is your role at EFL?

A: Explained my role here which was as Executive Assistant to the Managing Director and how I get to sit at C-Level meetings and learn a lot from very experienced people in the industry. Additionally, I mentioned that I am a part of the strategy team and planning a 5x growth in the next five years.

M: Do you think that 5x growth is achievable in the next 5 years?

A: Sir. I believe machine financing portfolios won’t drive growth that much as it is a very saturated market but our new age loans like electric vehicles, retail loans and solar loans have tremendous potential and I do believe 5x growth in our AUM is possible through contribution from these verticals.

M: Alright, so let’s say you’re financing a machine worth 50 Lakhs and you’re keeping 25 per cent as margin. What are the other steps you take to ensure it doesn’t turn into an NPA?

A: Sir, we keep Loan to Value ratio at 80 per cent, and only provide a loan for 80 per cent of the machine’s value. And we keep the machine itself as collateral.

M: That’s what I already said no. We provide loans for say 75 per cent of the machine’s value. What other steps do you take to safeguard your portfolio? Do you think taking only the machine as collateral is sufficient?

A: We also help our customers restructure their loans or provide moratoriums or sustainable EMIs. During COVID, we did a lot of restructuring and thankfully, there were not many defaults. In any eventuality, we repossessed the machines and recovered our investment.

M: But during COVID, machine values dropped significantly. What did you do about that? How did you recover your money?

A: I think we just kept the machines for a long time, sir. Moving further, with the economic activity regaining, machine values have increased significantly over the last quarter and we were able to recover at least our principal amount. Our NPA is quite lower than the industry average. We’re very conservative in our approach. That’s something I really like about EFL.

M: So how much is your NPA percentage?

A: Around 0.5 per cent, sir. Although it’ll vary across verticals. (I was wrong; I later found out it was more than 1.5 per cent)

M: And who do you borrow money from as you’re an NBFC?

A: We borrow mainly from banks, but also from other NBFCs and financial institutions. I think Indian Bank is our largest creditor.

M: And what is your cost of funds?

A: I think it’s around 9-10 per cent. I am not sure; I have been here for only a month.

M: And what do you provide as collateral to your creditors, the banks?

A: I am not sure, sir. I am fairly new here.

M: Alright, that’s okay. You mentioned you’re a CFA level 1 and you’re interested in finance. So why don’t you just continue with Levels 2 and 3? Why do you want to do an MBA and pay a huge amount as fees?

A: Sir, I loved gaining financial knowledge via the CFA L1. I have planned to pursue levels 2 and 3. However, I am keen to gain knowledge about other aspects of a business including Marketing, Human Resources and Operations. I think MBA covers all these topics comprehensively and can help me become a great manager. Also, I am looking forward to peer learning at IIMs.

M: Alright, I think I’m done. Ma’am will ask you questions now.

Also Read: MBA PI Questions: How to Answer Why MBA Question? With Example

[Interview was handed over to the female member of the panel]

F: So Akash, what are your hobbies?

A: My hobbies include following the stock market, Vedic Math, binge watching TV shows and just trying out new dishes.

F: Oh so Vedic Math. Would you like to teach us a trick?

A: Sure ma’am. I will tell you one of the simplest tricks.

F: You can use Pen and Paper.

A: That's alright. I can explain it orally. So say we want to multiply 96 and 94. Now 96 is -4 from 100, and 94 is -6 from 100. (However, I took a piece of paper later and explained the trick after highlighting the problem)

F: Okay, so does this work for like any two numbers?

A: Well, it’s very easy to do with a base number like 10, 100, 1000 etc. We can also do this by taking 50, 500 etc. as a base but that brings in a bit more complexity.

F: Oh alright, base numbers, right. So you must know Shakuntala Devi. Do you think she uses this Vedic Math or she’s just a gifted soul?

A: Well, Vedic Math doesn’t work with like every number. I mean say 547*678, I can do it in 30 seconds but she can just do it in 1 or 2 seconds. It’s crazy. I think she’s a truly gifted soul.

F: So from where did you get this interest in Vedic Maths?

A: Well I come from an RSS run school where it was offered as an extracurricular. I was always good with Mathematics, so I was fond of it. I am also a state champion in Vedic Maths. I really wanted to be the National Champion, but that didn’t happen.

F: So Akash, I’ll just give you an equation to solve. Write it down and try to solve it. 30X + 29Y+ 31Z = 366

A: I’ll just try this for a few seconds.

F: Sure, take your time.

A: [After trying for 30 seconds, or less and failing to reach a solution] I would now like to tell you my approach to the problem instead if that’s okay. I’ll just divide, 366 by 90 (29+31+30), start with {4, 4, 4} and readjust the “6” remaining to reach the solution.

[Right after getting out, I realized {4, 1, 7}, {6, 0, 6}, {2, 2, 8} are the multiple solutions. Five days later, when I was discussing my interview with one of my friends, he showed me that it’s the goddamn LEAP YEAR equation, and {4, 1, 7} is a simple solution. God I’m so dumb, and she played me for a fool.]

F: Okay, that’s alright. So you said you follow the stock market, what are your views on the Paytm and Nykaa IPO?

A: I don’t like Paytm as a company, I think they’re a jack of all trades but master of none. They’re just trying a lot of things. But whatever they do, there’s someone better than them in every field. In stockbroking, Zerodha is better, in UPI, PhonePe is better, and in the wallet services, PhonePe is better. So I think they’ve no clear vision of what they want to do and investors are not happy with that. Anyways their valuation was sky high and people are just not happy with the company’s growth prospects and hence punishing the stock. It’s down more than 50 per cent from its IPO and I think it can still fall.

About Nykaa, yes it is also valued very highly but I think it also holds tremendous potential. And if Ms Falguni Nayar, who’s a role model of mine, can figure out how to penetrate further into tier-3 cities or towns, and if anybody can do it, I believe it’s her, then the company holds great potential. Maybe that’s why it still trades 10-20 per cent above its IPO price, although it has fallen more than 30 per cent from its 52 week high.

F: And what are your views on Zomato?

A: Zomato is currently trading at around INR 79-80 per share. It also had a very high valuation and then again, further doubled post listing and reached around 160/-. But with the latest quarter results out, it is continuing to make a huge chunk in losses. There’s no clear path to profitability and I think that’s why investors have brought it down so much. It still continues to trade around 10 per cent above its issue price though.

F: Alright, thank you Akash! I’m done.

M: Thank you Akash, please take the candy.

A: Thank you so much. This was a truly riveting experience and I thank you much for your time.

M: Please close the door on your way out.

A: Sure

Verdict: Converted

My Thoughts on the Interview

I believe the key to acing your interview is knowing everything about yourself, from the history of the place you were born to your pre-primary school, to that trip you took during college. Know who you are and what sets you apart. Be convinced that you deserve a place at top IIMs, then only you can convince your panellists of the same. Be stress-free and anxiety free during the day. Easier said than done, I know, but not being stressed out about converting your calls will help you relax and gain perspective.

Have an opinion about anything and everything. One mustn't be afraid to admit that they don’t know something. If you don’t about something, try to find a logical response. If you can’t find one, you can simply say “I don’t know.” Everybody misses out on 2-3 questions in an interview. Additionally, in my opinion, being arrogant or fake during the personal interview can lead to rejection of the candidature in spite of a good CAT score.

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