FINANCE MODULE QUESTIONS- 100 Q

Q1- Who makes the Interest budget-

1. CC 2. RHQ. 3.Plant 4. None of these
Q2-Who makes the Sales Budget-
1. CC 2. RHQ. 3.Plant 4. None of these
Q3-Budget made at the Plant site is called-
1. Plant budget 2. Station budget. 3.O & M budget 4. none
Q4- O & M budget is also called as-
1.Operational budget 2. Construction budget 3. Both 4. none

Q5-Construction Budget is made at –

1. CC 2. RHQ. 3.Plant 4. None of these
Q6-Who makes the Final Budget for a Plant
1. CC 2. RHQ. 3.Plant 4. None of these
Q7- What are the 2 types of budget in NTPC-
1.Operational budget 2. Construction budget 3. Both 4. none

Q8-Process of Budgeting is called –

1. Balance sheet 2. Cash flow statement 3. Budget 4. None
Q9-Who is the head of Budget committee at plant level?
1.GM 2. Finance head 3. O & M head 4. none
Q10-Who is the head of Budget committee at CC level?
1.GM 2. Finance head 3. O & M head 4. CMD
Q11-Who does not sits in Budget committee?
1.GM 2. Finance head 3. O & M head 4. HR head
Q12-In NTPC for how many years we make the budget?
1. 1 year 2. 2 years 3. 4 years 4. none
Q13-What type of budgeting we do at NTPC?-
1. Zero based budgeting 2. No budgeting at all 3. Carry forward approach 4. none
Q14-What budgeting we adopt in NTPC?

Q15-The financial statements important for Budget is-

1. P & L statement 2. Balance sheet 3. Both 4. None
Q16-The process of budgeting starts in the month-
1. March 2. February 3 January 4. April
Q17- The process of budgeting ends in the month-
1. March 2. February 3 January 4. April

Q18- Budgeting is planning about organization’s-

1. Financial resources 2. Physical resources 3. Both 4. None
Q19-Department which is responsible for compilation of all the cost center’s budget
Estimate-
1. HR 2. Finance 3. O & M 4. IT
Q20-First week of January is important for-
1. Budget 2. Balance sheet 3. P & L statements 4. All of these
Q21-Construction budget is for-
1. Plant which is generating electricity 2. not generating power. Both 4. None
Q22- Operation budget follow the approach-
1. Top down approach 2. Bottom up approach. 3. Middle approach 4. None
Q23. Planning about the utilization of the physical and financial resources of the
company is called –
1. Budget 2. Balance sheet 3 Both 4. None

Q24-Budgeting of loan is done at-

1. CC 2. RHQ 3. Plant 4. None
Q25-RHQ makes-
1. Revenue budget 2. Interest budget 3. Both

1. According to the financial terms “EPS” means.

a) Employee pension Scheme b) Earnings per Share
c) Equity Per Share d) Estimate Per Share

2 which areas of Site finance are not there in corporate finance?

a) Budget c)concurrence
b) Stores bill and priced stores ledger d) Establishment

3 Site finance/project finance is headed by.

a) DGM(fin) c)AGM(fin)
b) GM(fin) d) Sr. Mgr(fin)

4. ROI dentures
a) Rate of Interest b) Return on Investment
c) Rate of Indent d) None of the above

5. Under how many heads audit can be classified ?

a) Three b) Two c) Four d) Five

6. What is called “ EMD” ?

a) Estimated Money Deposit
b) Estimated Monthly Deductions
c) Earnest Money Deposit
d) Expected Monthly Deposit

7. Dop Means what ?

a) Department of Planning b) Depreciation on Plants
c) Delegation of Power d) None of the above

8 Which two concepts are related to profit & Loss Statement?

a) Conservation & Materiality b) Realization & Accrual
c) Consistency & Disclosure d) None of the above

9. As per balance sheet “Excise duty paid on stocks” can be termed as.
a) Fixed Assets b) Current Assets
c) Assets d) None
10. The higher the amount of working capital then there will be.
a) Higher return on investment b) Higher risk due to liquidity
c) Lower return on investment d) None
11. The Lower the amount of working capital then there will be.
 a) Lower risk due to liquidity b) Lower return on investment
c) Higher risk due to liquidity d) None

12. CAGR denotes

a) Compounded Annual Growth Rate
b) Cumulative Annual Growth Rate
c) None
13. PAT denotes
a) Price at Tariff b) Profit after Tariff
c) Profit after tax d) price after tax
14. DCF Technique means
a) Discounted cash Flow Techniques
b) Direct cash flow Technique
15. Name the Technique used to find out the relationship between volume & costs,
Volume & Revenues and Volume and Profit?
a) Break-even analysis b) Discounted cash flow Analysis
c) Cost Accounting ‘Analysis d) None of the above
16. What is the monthly Retail Ceiling for hiring of company Leased residential
accommodation in A-1 class City by and E-5 Executive of NTPC?

a) Rs.7480 b) Rs.8320 c) Rs.8920 d) None

17. Examination and verification of records and evidences by and independent person or
body of persons so as express their opinion about its genuineness is termed as
a) Enquiry b) Investigation c) Auditing d) None

18 As per Balance sheet “Construction work in progress” can be termed as.

a) Fixed b) Floating Assets
c) Assets d) None

19 Which is a basis for value of assets?

a) Accounts b) Money c) Cost d) None

20. In the Accounting equation which are equal to “assets”?

a) Capital + Liability b) Profit - Loss
c) Capital d) Liability

21 who are the other parties interested in the Financial statements of NTPC?
a) Shareholders & Investors b) Creditors & Labour
c) Government & Researchers d) All the above

22. Which is the common denominator for Accounting Records?

a) Men b) Material
c) Money d) Facts and figures

23. Which section of Corporate Finance is responsible for liaison with CERC for tariff
fixation, liaison with SEB’s for payments against our outstanding bills, debtor’s
reconciliation, interface with coal cos. for fuel supply, fixation of financial terms etc ?
a) Treasury b) Accounts/ Audit
c) Commercial d) Concurrence
22. Which season of Project Finance is responsible for inventory accounting – operating and
closing balances and receipt and issue of materials both in quantity and price ?
a) Prices Stores Ledger b) Commercial
c) Stores bills d) Works bills

23. Which section of Project Finance is responsible for payment and accounting of
contractor’s bills against work orders based on measurement books certified by Engr.-in-
charge and rates, terms & conditions of Letter of Award ?

a) Works bills b) Stores bills

c) Prices Stores Ledger d) Accounts/ Audit

24. Which section of Project Finance is responsible for payment and accounting of Supplier’s
bills against purchase orders and pricing of received materials for taking on stock ?
a) Works bills b) Stores bills
c) Prices Stores Ledger d) Accounts/ Audit
25. What is the full form of PRT?
a) project review Team c) project retiring team
b) Project reminding team

Correct answers are highlighted

in red

1. the rate of increment in NTPC ranges

from?
(a) 3-5% (b) 2.5-4%
©2-5% (d)3.5-6%

2.Number of dates of increment in NTPC

(a) 3 (b) 2
©5 (d)4

3.A employee appointed on 1st Nov 2008 will be given next

increment on
(a) 1st oct (b) 1st Nov
2009 2009
©1st Jan 2009 (d)None of the above

4.The rate of increment in W0

grade is
(a) 2% (b) 2.5%
©3% (d)None of the above

5. The rate of increment of a worker in SG

category will be
(a) 2.5% (b) 3%
©3.5% (d) 4%

6. Ets appointed on 16th September 2008 will be given next

increment on
(a) 1st (b) 1st Jul
Jan2009 2009
©1st Apr 2009 (d)None of the above

7.Non-practising allowance is
give to

(a) Deputation
(b) Company doctors
out employees

©Lien holder (d)None of the above

8. The rate of non-practising allowance

is
(a) 25% of
basic (b) 25% of gross salary
©30% of basic (d)None of the above

9. Field compensatory allowance can be given to employees of

existing stations
(a) True (b) False

10.The maximum rate of FCA is

during
(a) Pre-
award phase (b) construction phase

©Commercial
(d)None of the above
operation

11.The minimum rate of FCA is

(a) 2% (b) 5%
©6% (d)None of the above

12. Min no. of years of service required for being

eligible for HBA
(a) 5 years (b) 2 years
©7 years (d)None of the above

13.The maximum amount of advance admissible under HBA including construction and
modernisation/rennovation
(a) 7.5 Lakhs (b) 10 lakhs
©8 lakhs (d)None of the above
14. furniture advance is the only interest free advance available under
company policy
(a) True (b) False

15.Multipurpose advance can be taken by an employee

every year
(a) True (b) False

16. The maximum amount admissible for personal

computer loan is
(a) Rs. 40000 (b) Rs. 50000
©actual cost (d)None of the above

17.The maximum rate of interest under

HBA is
(a) 10% (b) 9.5%
©12% (d)None of the above

18. An executive trainee during training period is eligible for

conveyance advanve
(a) True (b) False

19. The employee has to make contribution

towards gratuity
(a) true (b) False

20.The maximum amount admissble as gratuity

amount is
(b) Rs. 3.5
(a) Rs 3 lakhs Lakhs
©Rs 4 lakhs (d)None of the above

21. Amount of deduction for death relief

scheme
(a) Rs 25 per
employee
(b) Rs 30
©Rs 40 (d)None of the above

22. Under family rehabilitation scheme the family has to deposit following with
the company
(a) PF balance (b) PF balance plus gratuity plus group
only insurance benefit
©PF balance (d)None of the above
plus gratutty
23.Under Post retirement medical scheme the family of retired employee is also
covered for mdical benefits
(a)True (b) False

24.The rate of contribution under provident

fund for NTPC is
(a) 12% (b) 11%
©10% (d)None of the above

25.Family rehabiliation scheme is admissible only in case of

death of an employee
(a) True (b) False

1. If the project is funded by World Bank, agreements to be signed by NTPC are -----

a) 2

b) 3

c) 4

d) 5

2. In order to tap the capital available in domestic bonds, NTPC has issued ----- series of
power bonds.

a) 6

b) 7

c) 8

d) 9

3. Bond issue requires creation of Charge over Assets up to ----- times.

a) 1.05

b) 1.15

c) 1.25

d) 1.35

4. The coupon rate issued by NTPC under its MTN program -----.
 a) 5.675

b) 5.875

c) 5.605

d) 5.805

5. Transaction fee paid to joint lead managers in USD 200 mn Euro bonds due in 2011 is
one of the following

a) 0.20% flat of the face value

b) 0.40% flat of the face value

c) 0.20% flat of the market value

d) 0.40% flat of the market value

6. Number of appraisals to be involved in appraising a project is -----.

a) 3

b) 4

c) 5

d) 6

7. All – in – cost ceilings issued under ECB Guidelines by RBI for 5 – 7 years -----.

a) 200 bps plus 6m Libor

b) 350 bps plus 6m Libor

c) 450 bps plus 6m Libor

d) None of the above

8. As per the composition of NTPC’s Forex loan basket on 31/03/2008, which among
the following is true?

a) 69% fixed
 b) 75% fixed

c) 25% floating + variable

d) 79% fixed

9. Repayment terms for Power companies under export credit

a) 10 years

b) 12 years

c) 14 years

d) 16 years

10. Among the following, which holds the second largest part in multilateral and bilateral
funding for NTPC

a) Russia

b) Japan

c) UK

d) France

11. OND is the Export credit agency of -----.

a) USA

b) Italy

c) Germany

d) Belgium

12. NTPC issued MTN in -----.

a) February 2006

b) April 2004

c) February 2004
 d) April 2006

13. Which holds 17 % in Euro bonds issued by NTPC

a) Asset managers

b) Insurance / Pension

c) Banks

d) Retail and others

14. Share of working capital margin & start up costs in total cost of a thermal project is

a) 3%

b) 6%

c) 9%

d) 16%

15. Exposure ceiling limits would be ----- of capital funds in case of a single borrower for
infrastructure projects as per exposure norms prescribed by RBI.

a) 15%

b) 20%

c) 30%

d) 40%

16. Minimum time required to finalise the deal under syndicated loan

a) 8 – 12 weeks

b) 10 – 12 weeks

c) 10 – 14 weeks

d) 12 – 14 weeks

17. Which among the following is not true?

 a) Bond have Easy Transferability , hence preferred by Investors

b) Bond issues will not fall in to exposure issues when subscribed by banks

c) Bonds are secured hence preferred by the Investors

d) Corporate Bonds are bench marked with G.Sec of comparable maturity

18. Exposure ceiling limits would be ----- of capital funds in case of a borrower group for
projects other than infrastructure projects as per exposure norms prescribed by RBI.

a) 20%

b) 30%

c) 40%

d) 50%

19. Assistance available for JBIC loan is ----- of eligible component of project cost.

a) 65%

b) 75%

c) 85%

d) 90%

20. Repayment period for ABD loan obtained for Unchahar II is -----.

a) 15 years excluding Grace period of 5 years

b) 20 years excluding Grace period of 5 years

c) 15 years including Grace period of 5 years

d) 20 years including Grace period of 5 years

21. SWIFT is

a) Society for Worldwide Inter-bank Financial Telecommunication

b) Society for Worldwide Inter-bank Financial Transformation

 c) Society for Worldwide Inter-state Financial Telecommunication

d) Society for Worldwide Inter-state Financial Transformation

22. The jargon TOM indicates

a) Forex Quotation for two business days

b) Forex Quotations for next business Day

c) Forex Quotation for any day beyond two business days

d) All the above

23. Cost accounting data could be looked by nature in the view of decision maker as

a) Direct & Indirect costs

b) Fixed & Variable costs

c) Marketing & Finance costs

d) All the above

24. Cost estimates should be prepared by ----- and vetted by -----.

a) Finance managers & Cost engineers

b) Cost engineers & Finance managers

c) Cost engineers & Project managers

d) Finance officials & Project managers

25. Requirement of credit rating is optional for

a) Euro bonds

b) Rupee bonds

c) Sec – registered bonds

d) None of the above

Answers: Key
1) A

2) D

3) C

4) B

5) A

6) B

7) B

8) A

9) B

10) B

11) D

12) A

13) B

14) A

15) B

16) A

17) B

18) C

19) C

20) A

21) A

22) B

23) A
24) B

25) A