( SPMM - 01 )

QUESTION PAPER

LIMITED DEPARTMENTAL COMPETITIVE EXAMINATION - 2007

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: 24.09.2007 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 & C 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) The discarded answer if any, must be crossed properly and supported by initial of the
candidate.
5) 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.
6) Use only blue or black ball pen. Use of Pencil is not allowed.
7) No sheet from the Question Paper / Answer Book should be detached.
8) You may do rough work, if required, on the blank sheets.
9) 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
Q.81 Q.82 Q.83 Q.84 Total
(5) (5) (5) (5) (20)

SUMMARY OF MARKS OBTAINED

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

PART - A
(Each question carries 1 mark)

Q.1. Material Control procedure includes:

(A) Storage of issues (B) Receipt of material
(C) Preparation of MI Slip (D) None of these

Q.2. Receipt Vouchers are numbered by:

(A) MCO (B) Inspection Deptt.
(C) Stores Section (D) Accounts Office

Q.3. MI Slips are allotted _______ digit numbers:

(A) 4 (B) 5 (C) 7 (D) 9

Q.4. The responsibility of intimation of rejection of stores to the supplier / consignor lies with:
(A) Provisioning Section (B) MCO
(C) Planning Office (D) Stores Section

Q.5. Receipt Vouchers are documents which are prepared by:

(A) Provisioning section on arrival of material & sent to stores section
(B) MCO on arrival of material & sent to stores section
(C) Gate office or Security office at gate and sent to stores section
(D) Stores section in the form of MI slip & subsequently converted into Receipt
Voucher

Q.6. By what other names MI Slips are alternatively called:

(A) Material Slip (B) Deposit Ledger voucher
(C) Ledger posting voucher (D) All of these

Q.7. In case of Inter-Factory Transaction (IFT), discrepancy in condition of stores affecting

whole consignment, the following will be sent to the consignor:
(A) Discrepancy Report
(B) Discrepancy Report & the Issue Voucher
(C) Issue Voucher and CRV
(D) Discrepancy Voucher-cum-loss statement

Q.8. In case of IFT, if the discrepancy is due to surplus quantity supplied which of the
following will not happen ?
(A) Consignor may accept the D.R
(B) Consignor may call for return of the excess
(C) Consignor may disown the responsibility for the excess
(D) Consignor will always make a plus adjustment

Q.9. In case of IFT, a CRV is not necessary in case of deficient quantity supplied & consignor
disowning responsibility if:
(A) DR is not prepared
(B) DR is prepared
(C) Quantity vouchered by consignor is shown in column 10 of the MI slip
(D) Entered in the issue voucher, issued by the consignor, by stores staff
 ( SPMM - 03 )

Q.10. In case of indigenous supplier, DD voucher is not prepared if any claim preferred is:
(A) accepted in part (B) accepted in full
(C) on carrying agency (D) None of these

Q.11. In case of indigenous supplies, supplier can be made responsible when _______ is
given standard remarks:
(A) Issue Voucher (B) Carrier’s Receipt
(C) MI Slip (D) Receipt Voucher

Q.12. When discrepancy report is turned down by a supplier and decided to prepare a loss
statement, then a loss statement is prepared on form:
(A) IAF(Fac) – 144 (B) IAF(Fac) – 145 (C) IAFA – 1445 (D) IAFZ – 1445

Q.13. When demurrage / wharfage becomes payable because of the negligence or inaction of
the consignor or consignee, the loss statement is prepared on Form:
(A) IAFA – 1445 (B) IAF(Fac) – 145
(C) IAF(Fac) – 144 (D) IAFA – 498

Q.14. While issuing the materials that tend to deteriorate or become obsolete, the principle of
____________ is followed:
(A) POFO (B) FIFO (C) FOFI (D) FOPO

Q.15. Railways liability of damage expiries after ______ days on termination of transit:
(A) 4 (B) 5 (C) 6 (D) 7

Q.16. In case of delivery of full wagons, if the seals, rivets and lock are not intact, it should be
noted on ____________ and, opening and checking of contents should be done in
presence of ____________:
(A) Receipt Voucher, Railway Representative
(B) Receipt Voucher, Stores Officer
(C) Railway Receipt, Railway Representative
(D) Railway Receipt, Store Holder

Q.17. In case of discrepancy while taking delivery of smalls from local Railway Authorities,
particulars of discrepancies will be entered in:
(A) Receipt Voucher & Issue Voucher
(B) Railway Receipt & Receipt Voucher
(C) Railway Receipt & Issue Voucher
(D) Railway Receipt & Railway Delivery book

Q.18. In case of FOR Destination, the contractor is:

(A) not liable for replacement
(B) liable for replacement free of charges at destination and no deduction from bill is
admissible for lost or damaged quantity
(C) liable for replacement free of charges at destination or deduction from the bill for
quantity lost or damaged in transit
(D) liable for replacement but entitled to charges for delivery at destination

Q.19. Which is the document for accounting the receipt of material to make good deficiency by
supplier at his expense ?
(A) Additional Receipt (B) Deficiency Receipt
(C) Discrepancy Receipt (D) Miscellaneous Receipt
 ( SPMM - 04 )

Q.20. M.C. Notes are used to despatch goods for Ordnance Factories by:
(A) Air (B) Sea (C) Rail (D) Road

Q.21. What is full form of M.C. Note ?

(A) Military Credit Note (B) Material Control Note
(C) Material Credit Note (D) Military Control Note

Q.22. In case of imported stores having no evidence that the quantities and / or condition of
material found are different from those existing at the time of unloading and came in
hands of clearing agency, the quantity will be __________ & entered in __________ of
MI Slip:
(A) that unloaded from ship or air craft, column 7
(B) that found on receipt, column 5
(C) that found on receipt, column 10
(D) that unloaded from ship or aircraft, column 11

Q.23. After preparation of MI Slip it is forwarded to:

(A) Receipt Group (B) Works Inspection (C) MCO (D) None of these

Q.24. MI Slips must be prepared within _____ hours of receipt of materials:

(A) 6 (B) 12 (C) 18 (D) 24

Q.25. Discrepancy Report for rejection is prepared on the consignor factory on Form:
(A) IAFZ 3045 (B) IAFZ 3046 (C) IAFZ 3047 (D) IAFZ 3048

Q.26. Slow moving and non-moving items are periodically checked at an interval of:
(A) 3 months (B) 6 months (C) 9 months (D) 12 months

Q.27. Inventory checking is carried out once in:

(A) 6 months (B) 12 months (C) 18 months (D) 24 months

Q.28. Declared Surplus are:

(A) Stores which cannot be utilised against present & future requirement for a
considered period
(B) Surplus that are intimated to Accounts Office
(C) Surplus that are intimated to MCO
(D) Surplus that are intimated to DGS&D

Q.29. For stores wrongly received, following voucher is prepared:

(A) Receipt Voucher (B) Casual Voucher
(C) Nominal Voucher (D) Discrepancy Voucher

Q.30. The guiding / reserve price of stores for disposal is made known to the auction
supervisor on:
(A) day of auction two hours before auction
(B) one day before auction
(C) day of auction one hour before auction
(D) day of auction half-an-hour before auction
 ( SPMM - 05 )

Q.31. Tank may be subjected to pressure or vacuum if:

(A) only the vent is blocked
(B) vent is widened
(C) vent is reduced in size
(D) The vent is blocked and / or the tank does not have capacity to handle the flow
required to equalize pressure

Q.32. To prevent fire and debris of explosion being blown up storage is made in ___________
buildings:
(A) Traversed (B) Oblique (C) Longitudinal (D) None of these

Q.33. The pre-condition(s) for a material to be held in stock pile is / are:

(A) only if it is non-perishable
(B) if only it is non-perishable and imported origin
(C) if it is non-perishable and imported origin or indigenous but difficult to obtain
(D) only if it is difficult to obtain

Q.34. All products are identified by ______ digit code number for the purpose of preparation of
Material Planning sheet:
(A) 7 (B) 8 (C) 9 (D) 10

Q.35. The manual system of document, on which the procurement action is initiated is:
(A) Material Planning Sheet (B) Store Holder’s Inability Sheet
(C) Demand Sheet from MCO (D) Material Procurement Sheet

Q.36. Acceptance of supplies in excess / short of the quantity ordered will not be held to be
modification in the conditions of a contract if the value of excess / short supply does not
exceed ______ % of the original value:
(A) 2.5 (B) 5 (C) 7.5 (D) 10

Q.37. For any claim of increase in price by the party due to permissible factors and where risk
purchase cannot be resorted to due to certain compelling reasons GMs can allow price
increase upto a ceiling of _______ % of the contracted price:
(A) 2 (B) 3 (C) 4 (D) 5

Q.38. Price increase is admissible within the prescribed ceiling only if:
(A) Risk purchase is not practicable
(B) Risk purchase would adversely affect production
(C) Either ‘A’or ‘B’
(D) Neither ‘A’nor ‘B’

Q.39. GM’s power for conclusion of contracts for road transport in each case between places
not connected by Rails:
(A) Rs. 2 Lakhs (B) Rs. 4 Lakhs (C) Rs. 6 Lakhs (D) Rs. 8 Lakhs

Q.40. The power of GM to regularise loss due to theft, fraud or neglect is:
(A) Rs. 5,000/- (B) Rs. 50,000/-
(C) Rs. 5,00,000/- (D) Rs. 10,000/-
 ( SPMM - 06 )

Q.41. Power of GM for regularization of loss not due to neglect in case of rejection in
manufacture:
(A) 25% of UAR percentage with maximum limit of Rs. 10,00,000/-
(B) 50% of UAR percentage with maximum limit of Rs. 10,00,000/-
(C) 25% of UAR percentage with maximum limit of Rs. 2,00,000/-
(D) 50% of UAR percentage with maximum limit of Rs. 2,00,000/-

Q.42. Financial power of GM for air-lifting from abroad in each occasion is:
(A) Rs. 2 Lakhs (B) Rs. 4 Lakhs (C) Rs. 8 Lakhs (D) Rs. 10 Lakhs

Q.43. When supplies of stores of Ordnance origin is not forthcoming from depots and stock
level have fallen down and production is likely to be affected, GM can procure stores
directly for a period of:
(A) 3 months (B) 6 months (C) 9 months (D) 12 months

Q.44. Cash purchase power of GM other than production and maintenance:

(A) Rs.10,000/- (B) Rs.15,000/- (C) Rs.20,000/- (D) Rs.5,000/-

Q.45. Spot payment power of GM for purchase of stores is:

(A) Rs. 50 Lakhs (B) Rs. 40 Lakhs (C) Rs. 30 Lakhs (D) Rs. 25 Lakhs

Q.46. All direct purchases in Ordnance Factories above _________ will be made on the basis
of recommendation of relevant Tender Purchase Committee:
(A) Rs.25,000/- (B) Rs.50,000/- (C) Rs. 1 Lakh (D) Rs. 2 Lakhs

Q.47. The constituents of a TPC is termed as Level III in factories is:

(A) AGM(MM), Addl. C of F&A/JCFA, AGM/Jt.GM(user section), AGM/Jt.GM(QC)
(B) Jt.GM(MM), JCFA/DCFA, Jt.GM/DGM(QC), Jt.GM/DGM(user section)
(C) DGM/WM(MM), DGM/WM(QC), DGM/WM(user section), DCFA
(D) None of these

Q.48. GM’s power for sanction of demurrage and wharfage in each case is:
(A) Rs.1,00,000/- (B) Rs.75,000/- (C) Rs.50,000/- (D) Rs.25,000/-

Q.49. Normal coverage period of material requirement is:

(A) 3 months (B) 6 months (C) 9 months (D) 12 months

Q.50. Plant & Machinery are purchased as new item under:

(A) Revenue grant (B) RR grant
(C) NC grant (D) Either ‘B’or ‘C’

Q.51. Stock pile of indigenous difficult item is:

(A) 3 months (B) 4 months (C) 6 months (D) 9 months

Q.52. Security Deposit Register is maintained in two parts, one __________ for cash deposit
and the other __________ for all other modes of deposit respectively:
(A) IAFA? 299, IAFA? 300 (B) IAFA? 426, IAFA? 530
(C) IAFA? 625, IAFA? 389 (D) IAFA? 525, IAFA? 285

Q.53. For vendor rating and grading, past _____ years performance is considered:
(A) 2 (B) 3 (C) 4 (D) 5
 ( SPMM - 07 )

Q.54. The weightage for Cost Rating in vendor rating exercise as per OFB Material
Management Manual is:
(A) 30 (B) 40 (C) 50 (D) 60

Q.55. In Material procurement, the term QEC refers to:

(A) Quantity Enhancement Clause (B) Quality Evolution Criteria
(C) Quantity Enhancement Criteria (D) Quality Enhancement Clause

Q.56. ABC analysis is carried out on the basis of:

(A) Usage value of material (B) Value of stock holdings
(C) Criticality in procurement (D) Importance associated with the material

Q.57. Procurement lead time is provided to:

(A) allow the Purchase Department to find out the sources of supply
(B) allow carrying out proper vendor rating
(C) ensure ordering & supplying material in time
(D) All of these

Q.58. For controlling WIP, the production warrants are generally issued for _______ months:
(A) 3 (B) 6 (C) 9 (D) 12

Q.59. Ranking statement comprises the price quoted plus:

(A) Excise duty (if any)
(B) Excise duty (if any) + Trade tax
(C) Excise duty (if any) + Trade tax + any other Govt. levies
(D) Excise duty (if any) + Trade tax + any other Govt. levies + Packing & forwarding
charges + any other charges

Q.60. The optimum level of stocks to be held in respect of imported items for non-stock pile
items is ______ months:
(A) 18 (B) 12 (C) 9 (D) 6

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. Inventory items are not handled by Stores section. T / F

Q.62. In case of IFT, MI Slip serves as a CRV for a plus adjustment for excess supply. T / F

Q.63. In case demurrage / wharfage becomes payable, CRV / DD voucher is made

followed by loss statement. T / F

Q.64. Despatch by road are dealt in similar manner as in the case of Railway
consignments for discrepancies in quantity or damage. T / F

Q.65. Accounts Officer can carry out surprise stock verification T / F

Q.66. Factories Act, 1948 provides rules for storage & handling of hazardous
substances. T / F
 ( SPMM - 08 )

Q.67. Atmospheric pressure in tank is maintained by providing a pump. T / F

Q.68. One of the major sources of chemical injury in storage system pipe line is
opening of wrong valve. T / F

Q.69. Automatic sprinkler system is used in areas where water sensitive fire &
explosion hazardous materials are stored. T / F

Q.70. The final authority for sanctioning of stock pile of material to be built in the
factory rests with DGOF. T / F

Q.71. Provisioning action is taken as per identification on Material Planning Sheets. T / F

Q.72. The Material Planning sheets require checks by Accounts Office on

provisioning of material. T / F

Q.73. The financial limits indicated against each TPC are for both RE & FE T / F

Q.74. TPC is the Competent Authority for release and revalidation of FE for
relevant cases decided by it. T / F

Q.75. A receipt on IAFA-299 is issued to depositor for security deposits. T / F

Q.76. As per M/s. Batliboi Committee, the order should be placed within 2 months of
date of receipt of firm targets from OFB. T / F

Q.77. Security deposit is refunded on production of ‘No Demand Certificate’

and after fulfillment of all undertakings. T / F

Q.78. The optimum level of stock for ordinary indigenous item is 3 months. T / F

Q.79. For ordinary item, the indents are placed 24 months in advance. T / F

Q.80. The EMD is to be charged at the rate of 2% of the estimated value of the store
without any ceiling limit. T / F

PART - C
(Each question carries 5 marks)

Q.81. Write all the aspects regulating ‘Earnest Money Deposit’.

Q.82. Write in details the process of Tender opening and CST preparation.

Q.83. Give a typical flow chart diagram of Store Receipt.

Q.84. Write about Compressed Gas cylinders, use and risks, precautions in their storage and
handling.