FINANCIAL MANAGEMENT

1. Delegation of power (DoP) is one of the control techniques exercised thro

a) Management b) Operating Staff
c) Finance Deptt d) HR Department
2. In NTPC Transactions under exrenal commercial Borrowings. (ECBs) are taking
Place between
a) NTPC & Foreign Bank / Lending Agency directly
b) NTPC & Foreign Bank / Lending Agency thro Govt. of India
c) NTPC & Foreign Bank / Lending Agency thro’ World Bank
d) None the above
3. Power Bonds issued by NTPC were to tap the
a) Capital available in the domestic capital market
b) Capital available in the foreign capital market
c) Capital available in the share market
d) Capital available in the Market
4. Besides the people at the helm of affairs, 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
5. Which is the common denominator for Accounting Records?
a) Men b) Material
c) Money d) Facts and figures
6. Which is a basis for value of assets?
a) Accounts b) Money c) Cost d) None
7. In the Accounting equation which are equal to “assets”?
a) Capital + Liability b) Profit - Loss
c) Capital d) Liability
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 “Construction work in progress” can be termed as.
a) Fixed b) Floating Assets
c) Assets d) None
10. As per balance sheet “Excise duty paid on stocks” can be termed as.
a) Fixed Assets b) Current Assets
c) Assets d) None
11. 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
12. 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
13. According to the financial terms “EPS” denotes.
a) Employee pension Scheme b) Earnings per Share
c) Equity Per Share d) Estimate Per Share
14. ROI dentures
a) Rate of Interest b) Return on Investment
c) Rate of Indent d) None of the above

15. CAGR denotes

a) Compounded Annual Growth Rate
b) Cumulative Annual Growth Rate
c) None
16. PAT denotes
a) Price at Tariff b) Profit after Tariff
c) Profit after tax d) price after tax
17. DCF Technique means
a) Discounted cash Flow Techniques
b) Direct cash flow Technique
18. 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
19. 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
20. 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

21. Under how many heads audit can be classified ?

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

22. What is called “ EMD” ?

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

23. Dop Means what ?

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

24. Which section of Corporate Finance is responsible for preparing cash/funds flow
statement(daily/weekly etc.,) investing surplus and borrowing from a consortium ?
a) Treasury b) Accounts / Audit
c) Establishment d) Concurrence

25. Which section of the Corporate Finance is responsible for arranging foreign
syndicated loans, issue of bonds if foreign capital markets and forex risk
 management?
a) International Finance b) Foreign Finance
c) Treasury d) IMF

26. 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

27. 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

28. 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

29. 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

30. As per IT Act, what is the rate of tax, for women employees, on the income from salary of
Rs. 1,35,000/- per annum?
a) 10 % b) Nil c) 15 % d) 20 %
31. As per IT Act, what is the rate of tax, on the income from salary of Rs. 2, 50,000/- and above
per annum?
a) 10 % b) Nil c) 30% d) 20 %
32. Whether the amount paid against leave Encashment, at the time of retirement, to an employee
is taxable or not as per the IT Act ?
a) Yes b) No c) Partly taxable d) Can’t say

33. CBDT stands for

a) Credit Book for Deducted Tax b) Certificate by Department of Tax
c) Central Board of Direct Tax d) Central Board of Declared Tax

34. As per IT Act, under Tax Deducted at Source from Salary, who has been empowered to
adjust loss if any, under the head “loss from house property” ?
a) Employee b) Employer c) Government of India d) IT Department

35. Which was the first Act that regulated the Electricity Sector in India ?
a) The Indian Electricity Act, 1900
b) The Indian Electricity Act, 1910
c) The Indian Electricity Act, 1920
d) The Electricity Supply Act, 1948

36. Under which Act State Electricity Boards were created ?

a) The Indian Electricity Act, 1900
b) The Indian Electricity Act, 1910
c) The Indian Electricity Act, 1920
d) The Electricity Supply Act, 1948

37. The price charged for the Sale of Electricity from the State Electricity Boards is termed as
a) Generation Cost b) Selling Cost
c) Unit Rate d) Tariff

38. Cost plus and Market Determined are two types of

a) Selling Price b) Generating Cost
c) Tariff d) None of the above

39. In India, under which Tariff regime the Electricity Sector is operating ?
a) Cost Plus b) Market Determined
c) Fixed Regime d) Variable Regime

40. Under two part tariff structure, recommended by K P Rao Committee) what are the charges
are covered?
a) Fixed charges & variable charges
b) Capacity charges and Energy Charges
c) Capital cost and UI charges
d) None foe the above
41. Under availability Based Tariff Structure (ABT ), what are the charges are covered ?
a) Fixed charges & variable charges
b) Capacity charges and Energy Charges
c) Capital cost and UI charges
d) None foe the above
42. In which year, CERC has issued the CERC Terms & conditions of Tariff Regulations that
gives the Principle of Tariff Determinations for the period 2004-
2009?
a) 2003 b) 2004 c) 2002 d) 2005
43. Name the normative Parameters notified by CERC for the Tariff 2004-2009?
a) Heat Rate & APC ( Auxiliary Energy Consumption)
b) Normative handling Loses for coal O&M Expenses
c) Both a & b
d) None of the above
44. Return on equity, Interest on Loan, O&M Expenses, Interest on working Capital,
Depreciation & Advance Against depreciation are the components of
a) Capacity charges b) Energy charges
 c) UI charges d) None of the above
45. As per CERC notifications what is the rate of return on equity per annum?
a) 10% b) 12% c) 14% d) 16%
46. As per CERC notifications what is the debt: equity ratio for the older station /
a) 60: 40 b) 70:30 c) 50:50 d) 40:60
47. As per CERC notifications what is the debt: equity ratio for the new station ?
a) 60: 40 b) 70:30 c) 50:50 d) 40:60
48. As per CERC notifications what is the useful life of coal based plant?
a) 25 Years b) 15 Years c) 35 Years d) 10 Years
49. As per CERC notifications, what is the useful life of the gas baes plant ?
a) 25 Years b) 15 Years c) 35 Years d) 10 Years
50. As per CERC notifications, what is the useful life of the Hydro power plant ?
a) 25 Years b) 15 Years c) 35 Years d) 10 Years
51. Primary Energy Charges, Secondly Energy charges, FPA (Fuel Price Adjustment), MOPE
(Monthly Operating Pattern Adj.) (in case of gas plants) are the components of
a) Capacity Charges b) Energy Charges
c) UI Charges d) None of the above
52. Variation Between actual Generation and scheduled Generation are accounted Through
which charges as per CERC Regulation ?
a) Capacity charges b) Energy Charges
c) UI Charges d) None of the above
53. If frequency is less than 49.02 Hz in a 15 min time block Max UI charges payable are.
a) Rs. 5.70/unit b) Rs. 4.70/unit
c) Rs.6.70/unit d) Nil
54. If frequency in the 15 min Time Block is more than 50.5 Hz then UI charges payable are
a) Rs. 5.70/unit b) Rs. 4.70/unit
c) Rs. 6.70/unit d) Nil
55. Unscheduled Interchange (UI) Charges is the mechanism to control the
a) GRID Operations b) Stations Operations
c) Unit Operations d) SEB Operation
56. How much % of basic pay is paid as field Compensatory Allowance to the employees posted
in Green field project before award of main plant order?
a) 15 % b) 20% c) 25% d) 10%
57. Upto what period extra ordinary Leave can be granted, on one occasion, on Medical Grounds
to an employee?
a) 3 months b) 6 months c) 9 months d) 12 months
58. State the Rate of interest on car advance currently prevailing in NTPC?
a) 5.5% b) 6.5% c) 7.5% d) 8.5%
59. As per HBA rules for how many cases an employee can give surety?
a) Three b) Two c) One d) Four
60. For house building advance amount of Rs. 5.5 lacs and above what is rate of interest being
charged in NTPC?
a) 7.5% b) 8.5% C) 9% d) 9.5 %
61. How much rate of interest is being charged, on the frontier advanced sanction3d to an
employee an NTPC?
a) 7% b) 4.5 % c) 3% d) 0%
62. As per furniture Advance rules of NTPC, within how many days of drawl of advance, an
employee is required to submit the voucher /bill?
a) 30days b) 60days c) 90days d) 120 days
63. For type C Accommodation provided to an employee in the city based company’s Township
how much amount is deducted as House Rent Recovery?
a) 1080 b) 540 c) 870 d) 435
64. How much amount is being paid as Transferred Grant to the Executives transferred in
Company’s interest?
a)15000 b) 10000 c) 5000 d) 200000
65. How much amount is being paid as Baggage Allowance to E2 & E3 level Executives on
transfer in company’ interest?
a) ½ Trunk b)1Trunk c) 2 Trunk d) 3 Trunk
66.In which case, executives are not entitled for packing charges, baggage allowance, transfer
grant and joining time ?
a) Transferred on Employee’s request
b) Transferred on company’s interest
c) Transferred on employee’s interest with at least 3 years of service at exiting place of
posting ?
d) Transferred on company’s interest with less than 3 years of se3rvice at existing place of
posting
67. Promoter’s Contribution, Lenders’ contribution (FIs & Banks), Public Participation through
IPO and follow-on equity offerings are termed as
a) Equity b) Debt c) Investments d) Project Financing
68. Project Financing, Placements in Capital Markets, Syndicated & Term loans are termed as
a) Equity b) Debt c) Investments d) Finance
69.As per CERC’s Tariff Regulations governing Power sector , What is the debt: equity ratio?
a) 50:50 b) 30:70 c) 70:30 d)60:40
70. In the last IPO, how much percent of shares of NTPC was issued to the public?
a) 10.5% b) 11.5% c) 9.5% d) 11%
71. Which was the first company whose securities started trading in both cash and futures &
options Segments immediately on listing?
a) Infosys b) ONGC c) Reliance d) NTPC
72. Which was the first company to be ranked third by market Capitalization on the day of
Listing?
a) Infosys b) ONGC c) Reliance d) NTPC
73. DRHP stands for
a) Draft red herring policy b) Draft right herring prospects
c) Direct red herring policy d) Draft Red herring Prospects
74. SEBI stands for
a) Stock exchange board of India
b) Securities exchange board of India
c) Securities executive board of India
d) Stock executive board of India
75. QIB stands for
a) Quorum of Institutional Bidders b) Qualified Institutional Bidders
c) Quality of Institutional Bidders d) Quantity of Institutional Bidders
76. FIIs stand for
a) Financial Institutions of India b) Finance and Industrial Institutions
c) Foreign Institutional Investors d) Foreign Industries Investors
77. NSDL stands for
e) National Securities Depository Limited
f) National stock Depository Limited
g) National Service Depository Ltd.
h) National stock Depository Limited
78. CDSL stands for
i) Central Depository Ltd.
j) Central Depository Ltd.
k) Central stock Depository Ltd.
i) Central Depository service Ltd.
79. From where loans were taken for Simhadri Project of NTPC ?
a) IBRD b) ADB c) JBIC d) KFW
80. Forex Quote “SPOT” stands for
a) Dealt today for delivery tomorrow
b) Dealt today for delivery after day after tomorrow
c) Dealt today for delivery after 48 hours
d) Ready, Delivery on demand
Part II
Write short notes on any two
1. International Financing in NTPC
2. Key features of Annual Report
3. CERC practices and factors affecting tariff
4. Provision of employee advances in NTPC
5. Highlights & constituents of Balance sheet