( SPMM - 01 )

QUESTION PAPER

LIMITED DEPARTMENTAL COMPETITIVE EXAMINATION - 2006

FOR THE POST OF CHARGEMAN-GR.II (T) & (NT)

SUBJECT: STORES PROCEDURE & MATERIAL MANAGEMENT CODE: 7.00 / 322

Sr. No. … … … … … … … … … … … … … ROLL NO.

Signature of the Invigilator … … … … … … … … … … … … … … …

Date: 16.10.2006 Duration : 3 Hours.

Time: 14:00 Hrs to 17:00 Hrs. Max. Marks : 100

Instructions: Please read the following instructions carefully before writing your answers:
1) All Questions in Part - A & B are compulsory.
2) Each Questions in Part - A & B carries 1 mark and that in Part - C carries 5 marks.
3) There are four alternatives - (A), (B), (C), (D) given against each question in Part - A out
of which only one is the most appropriate answer.
If (A) is correct, round on the correct alternative like (A) .
4) If a question in Part - A & B is answered wrongly or more than one answers are
marked, 0.25 marks will be deducted for each such question.
5) No sheet from the Question Paper / Answer Book should be detached.
6) You may do rough work, if required, on the blank sheets.
7) Please DO NOT repeat DO NOT write your name anywhere in the Question Paper.

For Examiners only

Part - A & B
Correct Wrong No Total
Answers Answers Answers (80)
Part - A
60 Marks
Part - B
20 Marks
Part - C (Any four)
Q.81 Q.82 Q.83 Q.84 Q.85 Total
(5) (5) (5) (5) (5) (20)

SUMMARY OF MARKS OBTAINED

Part - A & B Part - C Total
Marks (100)
(80) (20)
Obtained
 ( SPMM - 02 )

PART - A

Q.1. Late received Tenders:

(A) Can be opened to know the rate for rate comparison
(B) Can be opened but rate is not entered into CST
(C) Must not be opened but marked ‘Late’in red link
(D) None of these

Q.2. What is the financial power of GM to purchase a proprietary item:

(A) Rs. 5 Lakhs (B) Rs. 10 Lakhs
(C) Rs. 20 Lakhs (D) None of these

Q.3. SHIS is an indication of:

(A) Nil balance
(B) Excessive balance of stock compared to the requirements
(C) Inadequate balance of stock compared to the requirements
(D) None of these

Q.4. If a material reaches without connecting documents:

(A) It is fault of the consignor and the material should not be received
(B) MIS has to be made some how within 24 hours
(C) We have to fight with the goods carrier
(D) Such material has to be kept in suspense godown and No MIS can be made

Q.5. CRV stands for:

(A) Clear Receipt Voucher (B) Certified Receipt Voucher
(C) Combined Receipt Voucher (D) Certified Railway Voucher

Q.6. The value of purchase order when

(i) Qty ordered = 10 units (ii) Unit Price = Rs. 1000 (iii) Discount = 1%
(iv) ST = 4% is Rs. __________:
(A) 10,000 + 400 – 104 (B) 10,000 – 100 + ( 0.04 ( 9,900 ))
(C) ( 10 x 1000 ) + 0.04 ( 9,900 ) (D) None of these

Q.7. As per latest CVC guide lines, purchaser can negotiate with:
(A) All the vendors simultaneously (B) All the vendors one by one
(C) Only with the Lowest offerer (D) None

Q.8. A contract is concluded for supply of stores at specified rates during the period as
specified in the contract. No quantities are mentioned in the contract and the contractor
is bound to accept any order placed upon him during the currency of the contract at the
rates specified therein. Such a contract is called:
(A) Rate Contract (B) Running Contract
(C) Permanent Contract (D) Period Contract

Q.9. A source can be considered as established if they have successfully met the
requirement:
(A) Thrice (B) Once (C) Twice (D) For 3 years

Q.10. F.O.R. means:

(A) Freight Original Receipt (B) Free On Rail
(C) Freight On Rail (D) Freight Only Received
 ( SPMM - 03 )

Q.11. What percentage of quantity is generally reserved for development of additional sources:
(A) 50 % (B) 30 % (C) 5% (D) 20 %

Q.12. Which formula is used for calculating total cost on CST:

(A) Unit cost x Quantity + Excise Duty + Sales Tax
(B) Unit cost x Quantity – Sales Tax + Excise Duty
(C) Unit cost x Quantity + Sales Tax
(D) Unit cost x Quantity + Excise Duty

Q.13. Can a repeat order be placed if the original order was placed to cover an urgent and
emergent demand:
(A) Yes (B) No
(C) Upto 25 % of original order (D) Upto 50 % of original order

Q.14. ‘Force Majeure’clause in the Supply Order means:

(A) Factories can force the supplier to supply the item under all circumstances
(B) Circumstances under which supplier can be forced to supply the item
(C) Circumstances beyond one’s control to fulfill the contract
(D) Contractor can be forced to supply the item through Court of Law only

Q.15. In respect of contracts within his financial power, General Manager’s power to grant
extension of delivery date is:
(A) Full powers (B) Upto 2 years (C) Upto 3 years (D) No powers

Q.16. Arbitration is:

(A) Mechanism for resolving disputes avoiding court proceedings
(B) Mechanism of price negotiation
(C) Mechanism of selecting reliable supplier
(D) Standards for Quality check

Q.17. Non-moving items are the items which are in stock and which have not been drawn for:
(A) 2 years (B) 1 year (C) 3 years (D) 6 months

Q.18. For maintenance / timber items monthly requirement is assessed on the basis of
consumption of past:
(A) 6 months (B) 12 months (C) 18 months (D) 24 months

Q.19. Provisioning period is equal to:

(A) Time required for placement of supply order
(B) Lead time + period of utilisation
(C) Time to cover all actions upto supply of material by firm
(D) None of these

Q.20. All procurement proposals are to be vetted by Local Accounts if the estimated cost is
more than or equal to:
(A) Rs. 50,000/- (B) Rs. 10,000/- (C) Rs. 25,000/- (D) Rs. 20,000/-

Q.21. In case of Limited tender enquiry for general items, tender inquiries to be issued to
minimum:
(A) 10 firms (B) 6 firms (C) 3 firms (D) None of these
 ( SPMM - 04 )

Q.22. Supply order can be placed without TPC if the cost of item is less than or equal to:
(A) Rs. 25,000/- (B) Rs. 1,00,000/- (C) Rs. 75,000/- (D) Rs. 50,000/-

Q.23. For purchase of item exceeding Rs. 4 lakhs value but within 10 lakhs, which level of TPC
is held:
(A) Level I (B) Level II (C) Level III (D) Level IV

Q.24. What is the financial power of GM for procurement of stores when single acceptable
offer is received against open/limited tender enquiry:
(A) Full powers (B) Rs. 50,000 in each case
(C) Rs. 5 lakhs in each case (D) Rs. 20,000 in each case

Q.25. Inventory carrying cost includes the following:

(A) Interest on blocked capital
(B) Payment of the manpower working in the stores
(C) Ordering cost of items
(D) Both (A) and (B)

Q.26. The full form of CVC is:

(A) Central Verification Committee (B) Central Vigilance Commission
(C) Central Vigilance Chief (D) None of these

Q.27. For an estimated tender value of Rs. 3.00 lakhs how much earnest money deposit
(EMD) to be taken:
(A) Rs. 1,000/- (B) Rs. 2,000/- (C) Rs. 30,000/- (D) Rs. 6,000/-

Q.28. If the value of a supply order is Rs. 50 lakhs, how much security deposit to be taken from
the firm:
(A) Rs. 5.00 lakhs (B) Rs. 2.50 lakhs
(C) Rs. 10.00 lakhs (D) Rs. 1.00 lakhs

Q.29. Oxidising agents should not be stored near:

(A) Milk (B) Water (C) Petrol D) Rubber items

Q.30. Gasses filled in cylinders should be stored in:

(A) Dark and confined space (B) Confined and Hot space
(C) Cool and well ventilated place (D) Hot and dry atmosphere

Q.31. Brown rot is found in:

(A) Leather (B) Wood (C) Rubber D) Textile

Q.32. Making of a C.R.V is not necessary in the following case:

(A) When DRs raised for discrepancy in quantity are not accepted by the consignor
factories
(B) When neither the supplier (including other factories) nor the carrying agency can
be clearly held to be responsible for the transit losses.
(C) When demurrage / wharfage becomes payable because of the negligence or in
action of the consignor or consignee
(D) All of these
 ( SPMM - 05 )

Q.33. FIFO is to be followed for the following item:

(A) Steel billets (B) Tube lights
(C) Medicines (D) All of these

Q.34. Loss statement on form IAFA 498 is raised in the following occasions:
(A) When a loss of stores takes place while they are under custody of store receipt
section
(B) When demurrage becomes payable because of negligence of consignee
(C) When neither the supplier nor the carrying agency can be clearly held
responsible for the loss in transit.
(D) All of these

Q.35. The powers of GM to write off losses when the loss of stores is not due to theft, fraud
or neglect:
(A) Rs. 5,000 (B) Rs. 1,000 (C) Rs. 10,000 (D) Rs. 2,000

Q.36. ATR (Anticipated out? turn Report) is prepared by:

(A) OFB (B) Factory
(C) Embarkation authority (D) Local Accounts

Q.37. "Bill of Lading" is connected with:

(A) Despatch by Sea (B) Despatch by Air
(C) Despatch by Road (D) Despatch by Rail

Q.38. No claim shall be entertained by Railways, if the claimant fails to submit his claim within:
(A) One month (B) 2 months
(C) 6 months (D) 3 months

Q.39. When a material is found in excess quantity more than bin card quantity, it is regularised
by making the following document:
(A) SHIS (B) CIV (C) CRV (D) None of these

Q.40. Stock pile items are purchased under:

(A) Capital head (B) Revenue head
(C) Defered revenue head (D) None of these

Q.41. After carrying out ABC analysis, maximum inventory control is required for:
(A) A - class items (B) B - class items
(C) C - class items (D) All of these

Q.42. Creosote oil is used for control of:

(A) Termite (B) Microbiological damage
(C) Brown rot (D) All of these

Q.43. Stock verification group is under the control of:

(A) Ministry of Defence (B) Ordnance Factory Board
(C) General Manager (D) Chief Vigilance Officer

Q.44. When material received is less than the invoice / challan quantity, a report is prepared
which is called:
(A) Deficiency report (B) Discrepancy report
(C) Detailed report (D) None of these
 ( SPMM - 06 )

Q.45. Stock pile is generally maintained for:

(A) Difficult items to obtain quickly (B) Low value items
(C) Perishable items (D) Spares stock

Q.46. For preservation of rubber items in storage, we should apply:

(A) Grease on the surface (B) French chalk
(C) Used engine oil (D) Kerosene oil

Q.47. What is the basis for XYZ analysis:

(A) Value of stock holdings (B) Total annual consumption value
(C) Criticality of the item (D) None of these

Q.48. Return notes are prepared by:

(A) Store receipt section (B) Store stock section
(C) Consumer section (D) Store issue section

Q.49. The capital store ledger for stock-pile items is maintained by:
(A) Store stock (B) Planning office
(C) Local Accounts Office (D) Material Control Office

Q.50. For difficult indigenous items stock-pile can be built for a maximum of:
(A) 9 months requirement (B) 6 months requirement
(C) 4 months requirement (D) 12 months requirement

Q.51. FOB means:

(A) Fire on Board (B) Free on Bus
(C) Free on Board (D) None of these

Q.52. The minimum time to be given to suppliers for submitting quotations is equal to:
(A) 6 weeks (B) 3 weeks (C) 4 weeks (D) 2 weeks

Q.53. DGOF / Addl. DGOF OEF, GM HVF and VFJ have powers to release foreign exchange
in each case upto:
(A) 4 Lakhs (B) 5 Lakhs (C) 10 Lakhs (D) 15 Lakhs

Q.54. OEF group of factories are required to get approval for release of foreign exchange upto
4 lakhs in each case:
(A) From DGOF/OFB (B) From Addl. DGOF/OEF
(C) From GMs (D) From all these

Q.55. Which Central Purchase Agency has no inspection machinery:

(A) DGS & D (B) Deptt. Of Defence Supply, New Delhi
(C) D.G.S.W. Washington (D) None of these

Q.56. For R/R requirements of plant & machinery, GMs have full powers for placing indents on
Central Purchasing Agencies where estimated cost in each case is:
(A) Below 10 Lakhs (B) Below 5 Lakhs
(C) Below 3 Lakhs (D) None of these
 ( SPMM - 07 )

Q.57. VFJ and HVF GMs can place indent on DGSW London / Washington upto their
delegated powers for release of foreign exchange:
(A) Directly (B) Through HQrs
(C) Through DGS&D (D) None of these

Q.58. Progress of supplies against orders placed by Central Purchasing Agencies is watched:
(A) By DGS&D (B) By OFB’s Liason officer posted at DGS&D
(C) Directly by factories (D) None of these

Q.59. ISM in Ordnance Factories stands for:

(A) Indian Standards Management (B) India Supply Mission
(C) Indian Security Management (D) None of these

Q.60. DDS in Ordnance Factories stands for:

(A) Deptt. of Defence Supplies (B) Delhi Development Society
(C) Delhi Doordarshan Station (D) None of these

PART ? B

There are two alternatives - 'T' for True and 'F' for False given against each statement in this
part. If ‘T’is correct, round on the correct alternative like T . Each question carries 1 mark.

Q.61. The items generally brought within the scope of Rate Contracts
are unstandard items T / F

Q.62. In a Rate Contract, normally there is no mutually agreed delivery period T / F

Q.63. Against a Rate Contract, the contract remains alive for the purpose of delivery
of all stores ordered during its currency until deliveries have been completed T / F

Q.64. An item Ex-manufacture is defined an item available ex-shelf in the market T / F

Q.65. Source development will be necessary when the rates offered by the
established sources are considered high and not realistic in terms of the
prevailing market condition T / F

Q.66. GMs have the discretion to waive risk purchase and other penalties in
such cases and also to consider claims for price variation on merit upto
a limit of 10% for reasons to be recorded in writing T / F

Q.67. GMs are empowered to make direct purchase of plant and machinery
upto 1 lakh in each case T / F

Q.68. Registration of a firm may be cancelled with or without notice, if firm fails
to secure orders during a period of 2 / 3 years after initial registration T / F

Q.69. The purchaser is entitled to recover from the contractor by way of

liquidated damages a sum equal to minimum 1 % per month (or part thereof)
of the price of the store delivered late T / F
 ( SPMM - 08 )

Q.70. The potential loss suffered by the purchaser is recoverable in the shape
of liquidated damages if the purchaser is put to inconvenience due to
breach of time factor which cannot be quantified in financial terms T / F

Q.71. If the goods delivered are rejected by the buyer, the buyer intimates
to the seller that he refuses to accept them T / F

Q.72. General Managers enjoy full powers for purchase of steel & alloys
from PSUs and also canalised items T / F

Q.73. GM / HVF powers are of 3 lakhs for placing development orders in each case T / F

Q.74. Even if the machine is condemned on paper, spare parts can still be
purchased if the machine is being used for production T / F

Q.75. IGP is prepared by PV section T / F

Q.76. One of the causes for the stores being declared surplus is cut in
production programme T / F

Q.77. Scrap is same as waste product T / F

Q.78. The floor of godown where acetylene gas cylinders are stored has sand-filling T / F

Q.79. The stock pile for an imported item can be maintained for 12 months
requirements T / F

Q.80. There are 8 digits in a Bin card number T / F

PART - C

Attempt any 4 (four) questions from this part. Each question carries 5 marks.

Q.81. Write full forms of:

i) RPP ii) PWB iii) EOQ iv) CIF v) AWB

Q.82. How are the following items preserved ?

i) Paper ii) Cement items iii) Leather items
iv) Textile and woolen items v) Steel

Q.83. What do you understand by Risk Purchase ? Write briefly the procedure to be followed
in case factory decides to initiate Risk Purchase action ?

Q.84. Indicate the safety precautions to be taken by Store Keepers while handling the
chemical items and hazardous items.

Q.85. Write in detail the main functions of Store Receipt section.