STORES
Introductory
120.(1) The term “stores” means all articles and materials (other than cash and documents) which come into the possession of a Government servant for use in the public Service. This term does not, however, include items like fuel, charcoal, dietary products, etc.
🆀All articles and materials which came into the possession of a Govt. Servant for use in Public service.
Correct Answer:- Option-C
🆀Which of the following is not included in the term 'stores' in KFC?
A:-Dietary products
B:-Office furniture
C:-Laboratory equipments
D:-Books
Correct Answer:- Option-A
Which of the following does not include the term store?
A:-Furniture
B:-Fuel
C:-Agricultural products
D:-Steel Furniture
Correct Answer:- Option-B
🆀The term stores does not include _________.
A:-Charcoal
B:-Dietary products
C:-Fuel
D:-All of these
Correct Answer:- Option-D
🆀Which of the following is not included in the term 'stores' in KFC?
A:-Dietary products
B:-Office furniture
C:-Laboratory equipments
D:-Books
Correct Answer:- Option-A
For fulfilling the duties and functions of the Various Departments of the Government, “Stores” have often to be purchased. This chapter contains the general rules applicable to all Departments regarding purchase of stores required for use in the Public Service. In regard to particular classes of articles such as books and periodicals, stationery and printing stores, clothing and liveries, etc., these rules will be supplemented by the instructions in the book of Financial Powers issued by the Finance Department.
🆀The Powers of Officers to sanction refund of revenue are contained in ____________.
A:-Book of Financial Powers
B:-KFC
C:-KAC
D:-KTC
Correct Answer:- Option-A
In the case of Public Works, Forest, Stationery, Police and other special Departments, those rules should be supplemented by the special rules contained in the Codes and Manuals of the Departments concerned, e.g., P.W.D Code, Forest Code, Stationery Manual, Police Manual, etc. These rules will be supplemented by the provisions in the Stores Purchase Manual wherever specific provisions are not made in these rules.
(2) These rules and instructions also apply to the purchase of stores by Government servants on behalf of local bodies and of local funds administered by the Government, if such purchase is authorised by Government. Rules and Instructions regarding preferences or margin of preferences in respect of industries having approved rate contracts, or purchase of products of indigenous or Indian Industries or industries within the State of Kerala or Public Sector Institution etc., shall be applicable also in the case of purchases made by the Municipal Corporations. These Rules and Instructions shall be followed by Heads of aided schools while utilising Public Funds for the purchase of articles for their schools. This will apply to purchases from Special Fees Fund also.
🆀Which Department of Kerala State Government is formulating rules for the delegation of powers for the procurement of stores?
A:-Finance Department
B:-Store Purchase Department
C:-Concerned Administrative Department
D:-Public Works Department
Correct Answer:- Option-A
Authorities Competent to Purchase Stores
121. Expenditure on stores is included under contingent expenditure (except where it is treated otherwise, e.g., stores relating to works expenditure) and is therefore subject generally to the rules contained in Chapter V which govern such expenditure.
A Government servant who is competent to incur contingent expenditure may purchase direct from firms in India or through the agency of the Central Purchase Organisation, or direct from manufacturers abroad, such stores as he requires for the use of his department or his office subject to Stores Purchase Rules and also subject to the usual restriction regarding the existence of budget appropriation. Such purchases made in India are also subject to any money limits and other conditions prescribed generally or with regard to specific articles or classes of articles (See Book of Financial Powers).
Forecast of Requirements
122. A Government servant who has to purchase stores for the public service should estimate his requirements for the year so far as they can be foreseen. He should prepare an annual indent of stores in Form 13 in accordance with the instructions contained in Article 124.
🆀A Government servant who has to purchase stores should prepare an indent of stores in Form No.
Correct Answer:- Option- C:-13
🆀The first step to be taken by an officer who has to purchase stores for his office
B:-To prepare an annual intend
C:-To get administrative sanction
D:-To assess best time for purchase
Correct Answer:- Option-B
🆀The first stage to be taken by an officer who has to purchase stores for the Public Service is to
A:-Nominate an officer to oversee the whole purchase
B:-Ascertain whether funds are available for payment when supplies are made
C:-To prepare an annual indent of stores required during the next financial year
D:-Approximate price of the articles required may be ascertained from the open market
Correct Answer:- Option-C
🆀What is meant by "indent" with regard to stores?
A:-A detailed statement in Form No. 13 showing approximate cost of articles to be procured including incidental expenses
B:-A statement showing details of stores in a Government Office
C:-It is a requisition made by the Executive Engineer, PWD to the contractor for collecting materials
D:-It is supply order used after tenders
Correct Answer:- Option-A
The indent should show the approximate cost of articles to be purchased including incidental expenses and should be got sanctioned by competent authority. As far as possible a purchasing officer should lay in sufficient stock during the cheapest season. When necessary he should apply for advice as to the best time for making purchases and assistance in obtaining tenders to Government servants of other departments who are in close touch with the market for the articles required and know the usual course of their price. For example, it is usually advantageous to buy food grains required for rations just after the harvest and the Revenue Department is likely to be able to give useful advice and assistance in regard to such purchases. Articles which are likely to depreciate
or deteriorate during storage should not, however, be bought long in advance of requirements. It should also be remembered that the purchase of any article in advance of requirements involves the locking up of Government money and is not therefore desirable unless it is reasonably likely to prove advantageous in regard to price.
Preparation of Indent
(Article.123)
123. At the end of each financial year, each department should realistically assess its requirements of stores and equipments required during the next financial year and prepare a list of the articles required. The list may be prepared on the basis of the consumption during the previous 3 or 5 years and with reference to factors, if any, which justify an increase or decrease compared with the average. The lists for each year should also be based on the budget estimate for the next year and should be prepared duly allowing for the carrying over of stock for at least one quarter of the succeeding year. As soon as the list is prepared the required sanction of Government or other competent authority should be obtained for the purchase. Particular care should be taken to ensure that orders are placed only for quantities which will be utilised within a reasonable time.
*Note:– [Deleted]
🆀Annual indent for stores shall be prepared on the basis of the consumption during the
C:-Previous three to five year
D:-On the basis of actual consumption during the last six months
Correct Answer:- Option-C
🆀When does an officer assess the requirements of stores to be purchased for his office or department ?
(A) At the beginning of a financial year
(B) At the end of each financial year
(C) At the middle of the year
(D) At the beginning of a calendar year
Correct Answer: (B) At the end of each financial year
🆀Indent for stores for the next financial year will be prepared on the basis of consumption during the previous ___________
A:-Financial year
B:-Calender year
C:-Six months
D:-Three years
Corect Answer:- Option-D
🆀On what basis provisions for stores should be worked out?
A:-Based only on post consumption and forcast of requirements for works during the year
B:-Based on stock in hand and forcast of requirements only
C:-Based on post consumption and stock in hand only
D:-Based on post consumption, anticipated variation, stock in hand and forecast of requirements for work during next year
Correct Answer:- Option-D
🆀The first stage to be taken by an officer who has to purchase stores for the Public Service is to
A:-Nominate an officer to oversee the whole purchase
B:-Ascertain whether funds are available for payment when supplies are made
C:-To prepare an annual indent of stores required during the next financial year
D:-Approximate price of the articles required may be ascertained from the open market
Correct Answer:- Option-C
124.(i) It is the duty of each purchasing officer to see that funds are available for meeting the expenditure in respect of purchase of stores and administrative sanction is secured before proceeding to make purchases.
🆀It is duty of each purchasing officer to see that funds are available for meeting the expenditure in respect of purchase of stores and __________ is secured before proceeding to make purchase.
A:-Administrative sanction
Correct Answer:- Option-A
🆀What type of sanction is to be secured by the purchasing authority if funds are available for purchase of stores?
(B) Administrative sanction
Correct Answer:-(B) Administrative sanction
(ii) Heads of Departments and other officers empowered in this behalf are competent to accord administrative sanction for all purchases up to the limit of financial powers vested in them. For purchases involving higher amounts the sanction of Government is necessary.
🆀Purchase sanction for comparatively higher amount is issued by:
(A) Government
(B) Departmental Purchase Committee
(C)Head of Department
(D) None of the above
Correct Answer: Option: (A) Government
🆀Who is competent to accord administrative sanction for purchase of stores ?
(A) Finance Department
(B) Heads of Departments
(C) Administrative Department
(D) PWD
Correct Answer:-(B) Heads of Departments
(iii) Heads of Departments are themselves competent to accord administrative sanction for recurring supplies required for the normal running of their Departments for which funds are provided in the Budget. Heads of Departments are empowered to accord administrative sanction for purchases of other items up to `₹20,00,000 Group 1. Head of the Departments and 10,00,000 for other Head of Departments. But this shall not enable them to purchase luxury articles like refrigerators, radios, photographic equipments, microscopes, generators, audio-visual equipments, motor cycles and scooters.
🆀Heads of Departments cannot accord administrative sanction to purchase luxury articles like ?
(B) photographic equipments
Correct Answer: (D) all of the above
🆀Funds are available in a department for recurring supplies required for normal functioning of the department. Who is competent to accord administrative sanction in such cases?
(C) Administrative Department of Secretariat
Correct Answer: Option: (B) Head of Department
🆀If sufficient funds are available for the purchase of a generator costing *21,000/- to a taluk level office, it requires administrative sanction of:
(A) The Head of Department
(D) The District Level Officer
Correct Answer: Option:(B) The Government
(iv) Administrative sanction for a project in which the component items and their cost are listed out in detail will be taken as equivalent to administrative sanction for the purchase of such components.
(v) While issuing or recording administrative sanctions, mention should not be made of makes, specifications, rate contracts and such other details relating to the stores, the purchase of which is administratively sanctioned.
*Deletion C.S.No.2/03 [G.O.(P) No. 102/03/Fin., Dated 15/02/2003] w.e.f 27.01.2000.
**Substitution C.S.No.1/83 [G.O.(P) No. 50/83/Fin., Dated 21/1/1983]
🆀A Government Officer is indenting to buy some computers for his office. He has no delegated power to sanction such purchases, then he shall first
A:-Obtain administrative sanction
B:-Obtain fund, invite tender or quotation
C:-Place supply order
D:-Obtain articles and make payment
Correct Answer:- Option-A
125.(i) All purchase proposals which do not fall within the powers of the Head of Department will be considered by the appropriate Departmental Purchase Committee.
The factual accuracy of the materials placed before the Committee and the observance of the Rules in undertaking the various steps before, bringing the proposals before the Committee will be the sole responsibility of the Head of the Department.
🆀All purchase proposals which do not fall within the powers of the Head of Department will be considered by:
(A) The Administrative Department
(B) The Finance Department
(C) The Accountant General
(D) The Departmental Purchase Committee
Correct Answer: Option:(D) The Departmental Purchase Committee
(ii) While submitting recommendations to the Government for a purchase sanction, the Heads of Departments or other purchasing officers should furnish a certificate in the following form:–
“Certified that the purchase of the goods proposed in this report has been administratively sanctioned by competent authority (here mention the sanctioning authority with the Order No. and date) and that funds are available to meet the expenditure during the current financial year”.
🆀All purchase proposals submitted to Government for purchase sanction should contain a certificate of Head of the Department / other Purchasing Officer to the effect:
(A) that the items are urgently required for use
(B) items proposed for purchase are not available in stock in hand
(C) purchase cannot be postponed
(D)purchase of the goods proposed had been administratively sanctioned by competent authority and that funds are available to meet the expenditure during the current financial year
Correct Answer: Option:(D)purchase of the goods proposed had been administratively sanctioned by competent authority and that funds are available to meet the expenditure during the current financial year
🆀The provision for stores should be worked out based on
A:-Past consumption
B:-Anticipated variation
C:-Stock in hand
D:-All of the above
Correct Answer:- Option-D
126. (a) A Purchasing Officer should obtain stores by calling for tenders in all cases except the following:—
(i) Purchase of uniform for nursing sisters in all the hospitals in the State.
🆀Uniform of Nursing systems in all hospitals in the state may be purchased ______________. Correct Answer:- Option-C
(ii) Purchase of books and periodicals in all departments involving less than ₹15,000* at a time.
Note:—
For purchase of books and periodicals for any amount above ₹15,000* simple quotations from leading book houses and book dealers may be called for and orders placed on the basis of those competitive quotations. Written undertaking should be obtained from the selected firms to the effect that they shall supply the books and periodicals ordered; in time and in satisfactory condition.
🆀For purchase of books and periodicals for Rs. 1,00,000 - (one lakh), __________ from leading publishers may be called for.
Correct Answer:- Option-C
(iii) Petty purchases of less than ₹15,000* at a time.
Note:—
The Director of State Water Transport Department is authorised to arrange petty purchase of stores up to ₹ 15,000* at a time.
(iv) Purchase from Government sources subject to the conditions laid down in Article 127.
(v) Special purchase in which any other procedure is approved by Government [See also (b) and Article 142 below].
(vi) Controlled stores from controlled stocks.
(vii) Purchases of articles covered by rate or running contracts settled by the Director-General of Supplies and Disposals, New Delhi or the Stores Purchase Department, Trivandrum by operating such contracts.
🆀A purchasing officer should call for tenders for purchase of
(A) Uniform for nursing sisters in the Government hospitals
(B) Purchase of books and periodicals in all departments involving less than 1000 at a time.
(C) Purchase of electrical items for Government use
(D) Controlled stores from controlled stocks
Correct Answer: (C) Purchase of electrical items for Government use
🆀How should a purchasing officer obtain stores ?
(A) By-direct purchase from wholesale dealers
(B) By calling for tenders
(C) From a shop fixed by Government
(D) Direct from retail dealers
Correct Answer: (B) By calling for tenders
Quotations may be invited if the estimated value of the stores is between ₹15,000 to ₹ 1,00,000, Copies of Quotation Notice regarding the general conditions of the supply, specification of article, etc., should be supplied to all the firms to whom the enquiries were/are sent. A specimen form of Quotation Notice is given in Annexure I. It is not obligatory to publish Quotation Notices in the Gazette. Short Quotation Notices as in Annexure II may, however, be published in the newspapers if considered necessary.
🆀A purchasing officer obtains stores by calling tender. But there is an exception in calling tenders :
(A) Purchase of uniform for nursing sisters in the hospitals
(B) Purchase from Government stores
(C) Controlled stores from controlled stocks
Correct Answer:: (D) All of the above
🆀How should a purchasing officer obtain stores ?
(A) By-direct purchase from wholesale dealers
(B) By calling for tenders
(C) From a shop fixed by Government
(D) Direct from retail dealers
Correct Answer: (B) By calling for tenders
🆀A purchasing officer should call for tenders for purchase of
(A) Uniform for nursing sisters in the Government hospitals
(B) Purchase of books and periodicals in all departments involving less than 1000 at a time.
(C) Purchase of electrical items for Government use
(D) Controlled stores from controlled stocks
Correct Answer: (C) Purchase of electrical items for Government use
(b) Tenders should be invited, if the estimated value of the stores to be purchased is ₹1,00,000 or above. Tenders should be obtained:—
I. By advertisement (Open Tender).
II. By direct invitation to limited number of firms (Limited Tender).
III. By invitation to one firm only (Single Tender or private purchase).
🆀In a tender system which is not included ?
Correct Answer: (A) Closed tender
🆀 The. ..........system must be used as a general rule and must be adopted in the purchase of stores
Correct Answer: (C) Open tender
🆀Invitation of tender by pubic advertisement is called for in the case of
A:-Single tender
B:-Limited tender
C:-Open tender
D:-Purchase by quotation
Correct Answer:- Option-C
🆀A Government servant indents to purchase articles for an amount of Rs. 10 lakhs, he should invite
A:-Quotation
B:-E-tender
C:-Normal tender
D:-Pre-qualification tender
Correct Answer:- Option-B
The system of tender to be adopted when the estimated value to the contract is between Rs. 1 lakh to less than Rs. 10 lakh
(A) Open tender
(B) Limited tender
(C) Single tender
(D) None of the above
I. Open Tender.
(a) The open tender system i.e., invitation to tender by public advertisement, should be used as a general rule and must be adopted, subject to the exceptions mentioned in paragraphs under ‘Limited Tender’ and ‘Single Tender’, whenever the estimated value of the contract is ₹1,00,000 or more. In all cases of open tender, it is essential that wide publicity is given to the tender notification. Short tender notices as in Appendix V of the Stores Purchase Manual should be published in the Stores Purchase sheet of the Kerala Gazette. If the nature of the articles required is such that better results can be obtained by advertisement, short tender notices may also be published in one or more leading regional language news papers and also in one or two issues of a leading English newspaper published in India having wide circulation in the area from where the supplies are normally obtained.
🆀 Invitation offender by public advertisement is called :
(b) For stores which are obtainable purely from Kerala e.g., charcoal, firewood, etc., publicity may be given by advertisement in the regional language dailies even if the value is less than ₹1,00,000 .
🆀For the purpose of stores which are obtainable from Kerala, publicity may be given in the
A:-In English dailies
B:-Government Gazette
C:-Regional language dailies
D:-Regional language weeklies
Correct Answer:- Option-C
(c) In the case of purchases of heavy machinery, imported goods and other stores which cannot be obtained without wide publicity at All India level, the tender notices may be published in addition to their publication in the Government Gazette, in the Indian Trade Journal, published weekly from Calcutta by the Director-General of Intelligence and Statistics.
🆀All India level tender notices may be published in addition to Govt. Gazette notification, in the :
(C) Foreign Trade Publication
(D) Indian Trade Journal, Kolkata
ANSWER:-(D) Indian Trade Journal, Kolkata
🆀In the case of purchases of heavy machinery, imported goods and other stores which cannot be obtained without wide publicity at all India level, tender notice may be published in addition to Government Gazette,
A:-Indian Trade Journal
B:-Indian Trade Times
C:-Indian Trade News
D:-External Trade Journal
Correct Answer:- Option-A
(d) In addition to the publication, the short tender notices should be sent to all registered firms in the line and also to other reputed dealers.
(e) For the purpose of notifying dealers and contractors a list of approved firms, both Indian and Foreign of known reliability should be maintained in the office of every purchasing officer. The list should be prepared commodity-war on the basis of the list of registered firms maintained by Government in the Stores Purchase Department. The list will be examined and revised periodically. Applications from firms received by the several Departments for inclusion in the approved lists should be forwarded by them to the Stores Purchase Department. There is no objection to sending enquiries to firms outside the approved list.
(f) There are items for which there are no lists of registered firms in the Stores Purchase Department, e.g., bottles, earthenware jars, Ayurveda medicines, food materials, etc. In such cases when tenders are invited the Purchasing Departments should see that notices are sent direct to all known suppliers, particularly to reputed manufacturers and stockists and any others who might ask to be intimated especially when such notices are published only in the Gazette and not in newspapers.
(g) The Heads of Departments and Offices may make arrangements with the Superintendent, Government Presses to get printed sufficient number of spare copies of Tender Forms as in Annexure VI containing details of specifications, conditions of supply etc., to be supplied to the indenting purchasers. To facilitate matters, particulars regarding the quality are quite essential. The Heads of Departments will incorporate specifications
regarding quality also in addition to quantity wherever possible in the tender forms and short tender/quotation notices. The Superintendent of Government Presses will print and supply the spare copies of the tender forms to the Officers concerned within 8 to 10 days of requisition from the Heads of Departments.
🆀Open tender is also known as ___________.
A:-Negotiated tender
B:-Direct purchase
C:-Advertised tender
D:-Limited tender
Correct Answer:- Option-C
🆀Invitation of tender by pubic advertisement is called for in the case of
A:-Single tender
B:-Limited tender
C:-Open tender
D:-Purchase by quotation
Correct Answer:- Option-C:-Open tender
🆀Of the various tender systems the most commonly adopted system, as a general rule, is
(A) Limiter tender
(B) Negotiated contracts
(C) Single tender
(D) Open tender
Correct Answer: Option: (D) Open tender
🆀When should a tender be called for by a Purchasing Officer?
(A) for purchase of books of price less than 1,000
(B) for purchase of uniform for nursing sisters
(C) for purchase of stores valued above 1.00,000*
(D) for purchase of petty articles
Answer: (C) for purchase of stores valued above 1.00,000*
🆀Tenders should be invited if the estimated value of the store to be purchased is................or above:
(A) *1,00,000*
(B) 10,000
(C) *5,000
(D) *500
Answer: (A) *1,00,000*
🆀The system of tenders to be adopted when the estimated value of the contract is Rs. 1,00,000 or more
A:-Single tender
B:-Limited tender
C:-Open tender
D:-By quotation
Correct Answer:- Option-C
🆀For bulk purchase which of the following procedures should be adopted:
(A) Quotation
(B) Limited Tender
(C)Single Tender
(D) Open Tender
Correct Answer:- (D) Open Tender
🆀Of the various tender systems the most commonly adopted system, as a general rule, is
(A) Limiter tender
(B) Negotiated contracts
(C) Single tender
(D) Open tender
II. Limited Tender
The limited tender system may be adopted whenever the estimated value of the
order to be given is between ₹1,00,000/- lakh to less than ₹10,00,000/-.
🆀The system of tender to be adopted when the estimated value to the contract is between Rs. 1 lakh to less than Rs. 10 lakh
(A) Open tender
(B) Limited tender
(C) Single tender
(D) None of the above
The limited tender system may also be adopted instead of the open tender system even when the estimated value of the stores to be purchased is above ₹10,00,000 in the following cases:–
(i) When there are sufficient reasons for holding that it is not in the public interest to call for tenders by advertisement; in every such case the purchasing officer must record the reasons and communicate them to the Accountant-General, confidentially if necessary.
(ii) When the purchasing officer is satisfied that there is serious risk or inconvenience or loss to the public service by arranging the purchase by the open tender system or when the article are urgently required; in every such case the purchasing officer must place on record the nature of the urgency and the reasons why a deviation from the general rule has been rendered necessary.
🆀The system of ten stem of tender to be adopted when the estimated value to intract is between 1 lakh to less than 10 lakh
Correct Answer: Option: (B) Limited tender
🆀Limited Tender System may be adopted
(A) When articles are to be imported
(B) When the articles are in urgent need
(Ć )When the suppliers of the article are not willing to participate in the tender
(D) When the articles are perishable
ANSWER: (B) When the articles are in urgent need
🆀The system under which tender calls are confirmed to selected agencies in the field when purchase of store in urgent cases is resorted is known as
A:-Limited tender
B:-Open tender
C:-Negotiated contract
D:-Single tender
Correct Answer:- Option- A:-Limited tender
Limited Tender System may be adopted
(A) When articles are to be imported
(B) When the articles are in urgent need
(C) When the suppliers of the article are not willing to participate in the tender
(D) When the articles are perishable
III. Single Tender
(a) The single tender system may be adopted:–
(i) in the case of a small order when the articles required are of a proprietory character and competition is not expected to be advantageous. For this purpose a small order means an order of the value of which does not exceed * ₹ 5000 or, if more than one kind of article is ordered at one time the total value of which does not exceed ₹ 10,000.
(ii) when owing to the greater promptitude of supply by particular agencies of the special manufacture of some articles by certain firms, substantial economy can be effected by deviating from the tender system, officers may purchase direct such articles from the firms or agencies concerned.
(b) When the bills for a purchase made under ‘Single Tender’ is sent for audit, the drawing officer should record a statement explaining briefly the necessity for deviating from the open tender system.
🆀Wide publicity is not necessary for :
(D) Open tender cum Quotation
ANSWER:-(C) Single tender
🆀The system of tender to be adopted when the articles are of a proprietary character is :
ANSWER:-(C) Single tender
🆀Single Tender system for a purchase can be adopted :
(A) in the case of no competition
(B) in case of more convenience to purchase
(C) only one firm exists for the supply such articles
(D) in the case of small order
ANSWER:-(D) in the case of small order
🆀When the bills for purchase of stores made under “Single Tender System” is sent for Audit, what is the requirement to be fulfilled by the Drawing officer ?
(A) To inform whether the purchase was limited below maximum amount permissible as rules
(B) To inform whether competition was not expected to be advantageous
(C) To record a statement explaining briefly the necessity for deviating from the open tender system
(D) None of the above
Purchase from Government Sources
(Article. 127)
127.(a) (i) Products manufactured by State Government Departments and State Public Sector Industries and Institutions will be purchased from them, exclusively, without tenders for the first five years after they have gone into production, the prices being fixed by negotiation.
🆀Products manufactured by State Government undertakings will be purchased without tender for the first
A:-3 years after they have gone into production
B:-5 years after they have gone into production
C:-2 years after they have gone into production
D:-4 years after they have gone into production
Correct Answer:- Option-B:-5 years after they have gone into production
🆀 For how many years, products manufactured by a state Govt, Department, will be purchased exclusively from them, without inviting tenders and by fixing the prices by negotiation?
A:-For the first two years after they have gone into production
B:-For the first ten years
C:-For the first five years after they have gone into production
D:-Only for one year after they have gave into production
Correct Answer:- Option-C
Products manufactured by State Government Departments and State Public Sector Industries and Institutions will be purchase without tender for the first :
(A) 10 years
(B) 5 years
(C) 3 years
(D) 25 years
Prior to such negotiation, the purchasing authority should ascertain the normal market prices by enquiry from as large a number of suppliers as possible. If the price required by the State Government Departmental Unit/State Public Sector Industry/Institution is over 25% above the normal market prices, the price is to be reviewed and decided by Government.
(ii) In the case of products of State Government Departmental Units/State Public Sector Industries and Institutions which have been in production for more than five years, tenders should be invited as laid down in this Code and purchase should be finalised giving the concerned State Government Departmental Unit/State Public Sector Industry/ Institution, a price preference of 10 per cent as against firms manufacturing outside the State and 5 per cent as against firms manufacturing within the State.
(iii) In giving the price preference as mentioned above, the prices for comparison, should be taken exclusive of sales-tax
(b)(i) A list of Government Institutions/State Public Sector Industries/State Government Department Units which manufacture and supply stores is given in Annexure III.
(ii) In respect of purchases to be made from institutions, etc. listed in Annexure III all purchasing officers should see that only those items are purchased which are normally manufactured by them. In the case of Small Scale Industrial Units under the Kerala State Small Industries Corporation, in order to show that a particular item is normally manufactured by a particular unit, such unit should produce a certificate to that effect from the Managing Director, Kerala State Small Industries Corporation, Trivandrum.
(iii) As regards direct purchase without calling for tenders or purchases on price preference from Public Sector Units of the Government of India the orders issued by the Government from time to time in respect of Individual units will be followed.
Purchase of Furniture
(Article. 128)
128. (i) Heads of Departments and Officers should see that the furniture required for the offices and the institutions under their control is made of superior wood only, such as teak, jackwood and blackwood.
(ii) “Officers authorised to make local purchase of furniture may obtain Administrative and purchase sanction of Government for the purchase of furniture even from Government Sources.”.
Provided that purchase sanction for Government will not be necessary for the local purchase of furniture up to `₹20 lakh by the Heads of Group I Departments and up to ₹10 lakh by heads of other Departments. in Group II and III.
The Head of the Departments are also authorized to purchase stationary up to 1 lakh.
PURCHASE OF FURNITURE
GROUP.I ► Head of the Department up to ₹2,00,000
GROUP.II ► Head of the Department up to ₹1,00,000
GROUP.III ►Head of the Department up to ₹1,00,000
( G.O. (P) No. 224/2000/Fin. Dated 27-1-2000).
(iii) Competitive quotations /tenders should be invited from the firms approved by the Stores Purchase Department in respect of the purchase of quality furniture and similar items required for use in the Secretariat, Tourism
Department, Traveller’s Bungalows and Rest Houses. After receipt of tenders/quotations in deciding on placement of supply orders the P.W.D. Engineering Workshop, Chackai,Thiruvananthapuram and the Government Wood Workshop, Kozhikkode should be given price preference as per Article128 subject only to consideration of quality.
Ascertainment of Surplus Stores
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(Article. 129)
129. Before orders are placed with private firms, the surplus stock or articles, if any, available with other Departments of the Government should first be utilised, irrespective of the cost at which it is available. The following instructions should be observed in regard to the utilisation of the surplus stores in the Departments of the Government:–
(a) Each Head of a Department should circulate from time to time lists of all usable stores found surplus to the requirements of his Department to other Heads of Departments as soon as the surpluses are noticed.
(b) Every Head of Department should see from the list received by him under instruction (a) above whether he can utilise the stores available with the other Departments before he places, or allowed his subordinates to place orders for the purchase of such stores in the open market, or submit proposals to the Government for such purchases. Even in cases where no list has been received by him covering the particular articles required by him, he should make enquiries of the Heads of Departments with whom such stores may be available ordinarily.
(c) When proposals are submitted to Government or any authority authorised by Government for according sanction to the purchase of any stores it should invariably be stated whether action was taken with reference to instruction (b) above and if so, with what result.
130. Every Officer who proposes to purchase materials by the open tender system should obtain tenders in a prescribed form issued by him or on commercial letter papers of the tendering firms. For all purchases involving ₹1,00,000 or more, tender forms should ordinarily be prescribed and issued by the purchasing officer at prices according to the scale approved by Government.
Note:–
The United Kingdom Trades Commissioner in India should be supplied with one copy each of the tender forms as are required by him, free of cost by all the purchasing departments who invite tenders for the purchase of stores.
The priced tender forms should contain the general conditions of tender and a list of materials to be supplied and should be got printed in book form. The general conditions of tender are contained in Annexure VI.
🆀Form of tender is given in __________ of KFC Vol.I
A:-Annexure X Art 20
B:-Annexure II Art 80
C:-Annexure VI Art 130
D:-Annexure I Art 25
Correct Answer:- Option-C
The following scales of prices (exclusive of Sales-tax) are prescribed by Government for tender forms to be issued by Government Departments.
(a) Ordinary tenders involving supply of stores.
Estimated cost of materials for
which Cost of tender forms
tenders are invited | | Cost of tender forms |
| Original copy each | Duplicate copy each |
| Up to 10,00,000 | 0.2% of the cost of
tender rounded
to the nearest multiple
of 100 subject to a
minimum of 400
and maximum
1500+VAT as possible
| 50% of the cost of
the original copy,
upper rounded to the
nearest multiple
of 100+VAT as
applicable |
| Above 10,00,000 | 0.15 % of the cost of
tender rounded
to the nearest multiple
of 100 subject to a
maximum of 25000
+VAT as possible | 50% of the cost of
the original copy,
upper rounded to the
nearest multiple
of 100+VAT as
applicable |
| | |
| | |
(b) Special tenders withdrawing etc., and involving erection of plant
and machinery. O
| Original copy each | Duplicate copy each |
| Up to 10,00,000 | 0.25 % of the cost of
tender rounded
to the nearest multiple
100+VAT as possible
| 50% of the cost of
the original copy,
upper rounded to the
nearest multiple
of 100+VAT as
applicable |
| Above 10,00,000 | 0.20 % of the cost of
tender rounded
to the nearest multiple
of 100 +VAT as possible
| 50% of the cost of
the original copy,
rounded to the nearest
multiple of
100+VAT as
applicable |
| | |
` `
General conditions of contract for Plant, Machinery and Manufactured Equipments usually supplied with special tenders: ` 200 per extra copy.
(c) In the case of tenders for supply and erection involving more than ` 50 lakhs the cost is to be fixed at ` 100 for original copy and ` 10 for duplicate copies. Duplicate sets of drawings alone in such cases are to be separately charged at ` 10 per set.
(d) Ordinarily duplicate copies of tender forms should be issued only to firms or individuals who have purchased the original copy. But in the case of special tenders duplicate can be issued to applicants for reference even if they have not purchased the original copy. But in such cases care should be taken to see that the tenders are submitted only in original copies.
(e) The cost of tender forms may be accepted in cash or by money order only. Postal orders, postal stamps, bank drafts or bank cheques should not be accepted. No forms should be sent by V.P.P. or in advance.
🆀The cost of tender forms can be accepted in the form of
A:-A Bank Draft
B:-Cash or money order only
C:-Cash only
D:-Bank cheques
Correct Answer:- Option-B:-Cash or money order only
In certain special cases of purchases involving less than ` 10,000 priced tender forms may be preferred depending upon the nature of the stores, e.g., charcoal, firewood etc.
(a) In certain other cases even though the amount involved is more than ` 10,000, priced tender forms may not be desirable, e.g., fuel oil, motor vehicles, etc.
(b) In all cases of rates/running contracts priced tender forms are essential irrespective of the amount involved unless otherwise decided by Government (See also Article 141).
(c) Free tenders (or quotations) may be invited in all cases of limited tender or single tender system. In such cases, the tendering firms can submit their tenders in their own commercial letter papers.
Invitation of Tenders
(Article.131)
131. Whenever tenders are invited, the procedure in the following rules should be followed. This procedure will apply to all Departments except those for which special rules have been laid down in their Codes or Manuals.
(a) Before inviting tenders, every officer should estimate his requirements for the year as far as he can foresee and regulate the time of his purchases according to the state of market and stock position of stores of his Department (vide Article 123). A phased programme may be drawn up for inviting the tenders so that there is no rush of tenders at any time and priority is given to articles which are in urgent need.
(i) Tenders can be invited even during the previous financial year for normal and recurring supplies likely to be required by various Departments in the succeeding year. But actual financial commitment should be entered into only after the Budget is passed by the Legislature.
(ii) In the case of requirement in bulk or costly machinery for which competitive quotations can be obtained for forward delivery, tenders should be invited well in advance of the requirements so that stock purchases at prohibitive prices are avoided.
(iii) Rush purchases towards the end of the financial year should be avoided. Expenditure which might otherwise be postponed should not be incurred in the last month of the financial year solely with a
view to prevent lapses of the budget grants. Such rush purchases have an undesirable effect in that the strict observance of the rules regarding invitation of the tenders, proper scrutiny of offers etc., are rendered impossible at such high pressure. Hasty purchases cannot but lead to waste, confusion and delay.
(b) The articles should properly be classified under different trade groups according to the approved classification. (See Annexure IV to this Chapter). Tenders should then be invited separately for each group.
(i) The tenders should not be made unwieldy by including too many items of different kinds of materials in the same tender. Where purchases are large one tender notice should normally contain only one kind or class of articles.
(ii) Requirements should be correctly estimated. After inviting tenders the quantity should not be varied materially. It is wrong economy to purchase bulk quantities at retail prices.
(iii) Indents of the different institutions or sections under the same Head of Department should be classified and bulked into a single list. They need not be shown separately in the tender list or schedule.
Example:–
Laboratory glassware is required for the Physics, Chemistry, Botany and Zoology Laboratories of a College. Each of these Departments should not invite tenders separately, not should the Principal invite tenders separately for each Department. On the other hand the requirements of all the four Departments should be properly classified and bulked. If, for example, each of the four Departments require 2 beakers with spout 500 c.c. the quantity should be mentioned as 8 numbers and this should occur only at one place in the tender notice.
(iv) The names of stores should be arranged in a clear intelligible manner. Alphabetical arrangement is desirable. Each item should be given correct and adequate specifications. Mere reference to a catalogue numbers and mention of patent/brand names should be avoided. For example, “Frigidaire” should not be mentioned where the requirement is a refrigerator.
(c) The requirements of the same or similar materials should be consolidated and tenders invited in order to secure the advantage of competitive prices for bulk supply. Tenders should not be invited by the same Department for the same class of materials several times during the same year. Apart from losing the advantage of bulk purchases, piecemeal purchases result in avoidable work and delay.
(d) Tender specifications should be carefully and correctly drawn up so that there is no ambiguity about the correct type, size, packing etc., of materials required. There should be no room for changes in specifications after inviting tenders.
(e) (i) Intending Departments should endeavour to adopt the Indian Standard Specifications wherever available, and where such specifications have not been laid down, should consistent with the requirements of safety, security and end use of the stores, permit relaxation of standards having regard to technical limitations in indigenous production.
(ii) In respect of articles purchased by Government, other things being equal, preference will be given to goods bearing Indian Standards Institution certification mark.
(iii) Copies of tender notices issued by the Purchasing Officers will be sent to the Indian Standards Institution for information.
🆀Copies of tender notices issued by purchasing officers will be sent to __________ for information.
A:-Economics and statistics dept.
B:-Indian standard institution
C:-Central statistical organisation
D:-Accountant General
Correct Answer:- Option-B
Copies of tender notices issued by Purchasing Officers will be sent to .................. for information.
(A) Economics and Statistics Dept.
(B) Indian Standard Institution
(C) Central Statistical Organisation
(D) Accountant General
(f) (i) Comprehensive specifications of plant, machinery and specialised equipment should be given with the terms “or similar” added wherever possible.
(ii) Where there is lack of experience of any particular type of equipment and full specifications cannot be furnished, preliminary enquiries should be made in the first instance and the offers got examined by the technical experts who should then draw up comprehensive specifications for inviting the formal tender.
(iii) Tenderers should be allowed to quote for all the items included in a tender or a part thereof. They should also be allowed to make suitable alternative offers.
(g) A Purchasing Officer who invites tenders for the supply of stores may exercise full discretion regarding the place of delivery to be specified in the invitation of tender. The conditions should as far as possible be such as to give all tenderers equal opportunities of tendering at their lowest rates. He may stipulate for delivery c.i.f. or f.o.r. at an Indian Port or f.o.r. at the place of despatch in India or f.o.r. destination or for free delivery at the receiving stores/office. When tenders are invited for the supply of plant and equipments and the successful tenderers is to erect the plant at site, the appropriate conditions in regard to delivery at site should be included in the invitation of tender or in the general specifications.
(h) Save as provided in Article 148(b) all articles required for use in the public service shall be purchased on the condition that delivery shall be made in India for payments in Rupees in India. Except in special cases, full payment should not be made for any stores against shipping or railway documents, and payment should be completed only after the Receiving Officer has taken delivery of stores and found them to be satisfactory in every respect.
(i) In all cases of invitation of tenders, care should be taken to see that sufficient time is allowed to the tenderers to submit their tenders. In fixing the date for the receipt of tenders , the purchasing Officer should take into account the time required for publicity, for the receipt of the tender forms by the tenderers and the preparation and despatch of the tenders. He may exercise his discretion about
the last date for the receipt of tenders keeping in mind the nature and supply position of the articles required to be purchased.
(j) The following minima are suggested:¬
(i) For ordinary stores which can be procured from the Indian market—One month.
(ii) For machinery and plant which have necessarily to be imported—Two months
(iii) For heavy equipments involving foreign manufacture of plant and machinery, their import and erection—Three months.
🆀The minimum time allow tenderer to submit tender for ordinary stores which can be procured within the country is
A:-3 months
B:-21 days
C:-one month
D:-15 days
Correct Answer:- Option-C
(k) The invitation should also specify a period of firmness during which the tenderers are to keep their rates firm. The time fixed for firmness of offers should be enough to cover the normal delay expected in placing supply orders after going through all the formalities. It is necessary that regard should be had to the fluctuating nature of the markets in fixing these periods. Long periods of firmness such as 6 or 8 months should be avoided.
The following periods of firmness may generally be prescribed:—
(i) All ordinary items of stores—Two months.
(ii) Important tenders involving manufacture, supply and erection such as heavy electrical plants, machinery steel structures etc. —Three months.
(iii) For stores which are in short supply in the country and the prices of which are subject to violent fluctuations, a maximum period of one month or even less may be fixed. A week or two is better.
(iv) It is important that in all cases decision regarding the selection of offers are taken promptly and acceptances communicated to, or supply orders placed with the selected firms before the period of firmness expires.
🆀In the case of all ordinary items of stores, The firm period of tender may be
A:-Six months
B:-Three months
C:-Two months
D:-One year
Correct Answer:- Option-C
🆀When a tender has been accepted, the Government servant should place supply order,
A:-After the firm period
B:-Before the firm period
C:-After the guarantee period
D:-Before the guarantee period
Correct Answer:- Option-B
(l) In all cases, tenders should be obtained in sealed envelopes. In special cases tenders in duplicate may be called for or even in triplicate. The tender invitation should include the general conditions of tender, and a list of the materials required, each item carrying full specifications and special conditions, if any. The tenderers should be asked to superscribe on the envelopes containing the tenders the name and number of tender as well as their own name. The advertisement should specify the price of tender forms and state the place where, the date on which and the time when the tenders are to be submitted, and will be opened. The tenderers or their representatives may be invited to be present at that time to scrutinise the several competitive tenders received.
(m) Tenders shall be invited in India and when considered desirable also from abroad for the supply of articles in order to obtain adequate publicity and to ensure that the purchase is made to the best advantage. These considerations apply mainly to the categories of stores which have usually been obtained in the past by import.
(n) The service of the Central Purchase Organisation (Director General of Supplies and Disposals, New Delhi, the I.S.D., London and the I.S.M., Washington) may be utilised to the extent necessary. The rules for utilising the service of Central Purchase Organisation are contained in Annexure V.
🆀The minimum time allow tenderer to submit tender for ordinary stores which can be procured within the country is
A:-3 months
B:-21 days
C:-one month
D:-15 days
Correct Answer:- Option-C
🆀In the case of all ordinary items of stores, The firm period of tender may be
A:-Six months
B:-Three months
C:-Two months
D:-One year
Correct Answer:- Option-C
Earnest Money Deposit
(Article.132)
132. A cash deposit as earnest money should ordinarily be taken for every tender involving ₹1,00,000 or more and for special tenders the amount being 1 per cent (rounded to the nearest rupee) of the total cost of the articles tendered for. This is subject to a minimum of ₹1500, if 1 per cent of the amount of the tender falls below ₹1500.
In certain special cases, a lump sum earnest money may be prescribed with reference to the nature of articles required and to the extent of possible
competition.
Note:—No earnest money or security deposit is necessary in respect of supplies from Government Institutions/State Public Sector Industries/ State Government Departmental units.
(a) Heads of Departments may by general or special orders dispense with earnest money deposits in the case of firms of established repute.
(b) Government or any authority authorised by Government may by general or special orders exempt any firm of repute and standing from furnishing earnest money.
🆀Which authority is empowered to exempt any firms of repute and standing from furnishing earnest money deposits?
A:-Government or authority authorised by Government
B:-Store Purchase Department
C:-Heads of major departments
D:-Finance department
Correct Answer:- Option-A
(c) Firms whose names are on the Register of approved suppliers kept by the Stores Purchase Department and who are registered with the Director General of Supplies and disposals, New Delhi are exempted from furnishing earnest money for tenders in respect of stores for which they have registered as suppliers of stores. But this exemption will not be given in the case of tenders for rate/running contracts.
(d) Small Scale Industries and Cottage Industries and Industrial Co¬operatives within the State which are certified as such by the Director of Industries and Commerce or by the Regional Joint Directors of Industries and Commerce are exempted from furnishing earnest money deposits in support of tenders submitted by them to Government Departments.
🆀-_______ are exempted from furnishing Earnest Money Deposit in support of tenders of store purchase.
A:-Small scale industries
B:-Agricultural manufacturers
C:-Central Govt Institutions
D:-Self employment institutions
Correct Answer:- Option-A
🆀Certain Small scale industries and industrial co-op societies, if otherwise eligible, are exempted from
A:-Executing agreement for a contract
B:-Furnishing EMD
C:-E-tender process
D:-Executing agreement in stamp paper
Correct Answer:- Option-B
(e) Firms, who produce a Bank guarantee in the prescribed form (Appendix 10 to the Stores Purchase Manual) for ₹10,000 as permanent earnest money to the Stores Purchase Department, need not furnish earnest money for individual tenders invited by Government Departments .
(f) Government Institutions/State Public Sector Industries which manufacture and supply stores are exempted from furnishing earnest money for tenders.
Earnest money may be accepted either in cash or crossed Bank Drafts or Treasury Savings Bank Deposits or Government Promissory Notes *or Bank guarantee. The tenderers should be specially instructed in the advertisement not to enclose in the envelope any Earnest Money in cash, but only in crossed drafts. Fixed deposit in the State Bank of Travancore, in the name of the Purchasing Officer or in the name of the depositor with due endorsement thereon to the Purchasing Officer may also be accepted provided the period is not less than six months.
🆀Earnest money deposit may be accepted in
A:-Crossed Bank Draft
B:-Cash
C:-Treasury Saving Bank Departments or Promissory note
D:-All of the above
Correct Answer:- Option-D:-All of the above
🆀The Earnest Money Deposit for stores purchase tender may not be accepted as
A:-cash
B:-Govt. Promissory note
C:-Cheque
D:-Demand draft
Correct Answer:- Option-C
🆀Earnest money deposits made by intending tenderers are credited to
A:-Personal deposit
B:-Revenue deposit
C:-Civil Court deposit
D:-Security deposit
Correct Answer:- Option-D
In the case of firms doing business within the State, cash remittance of earnest money should be made into any of the Government Treasuries and the receipted chalan produced with the tender.
Receipt and Opening of Tenders
133. (a) A register in Form No.15 should be maintained to show the details of the tenders invited; the names of tenderers, the date of receipt, date of opening, etc., of tenders and quotations. The tenders received should be serially numbered and entered in this register and then kept under lock and key by the Head of office until taken out on the opening date. Late tenders should also be entered in the Register and the reason for their inclusion or exclusion recorded in the remarks column.
🆀"Register of Tenders" is maintained in Form ___________.
A:-5
B:-10
C:-15
D:-20
Correct Answer:- Option-C
(b) The tenders should be opened (in the presence of any of the tenderers who may be present) by the Head of Office or by other Responsible Officer but not by subordinates. The tenders should be taken out from lock and key by the Officer opening the tender at the appointed hour only. They should be opened in the same order in which they have been received. Each tender/ quotation opened should be serially numbered and initialled by the Officer with date and time. The names of the representatives of tenderers present should be entered in the appropriate column of the Restgister referred to above.
(c) The envelopes in which tenders are received should be prescribed along with the tenders for the purpose of record. The file of tenders and the envelopes with the orders of the purchasing officer or of Government accepting one or more tenders should be carefully preserved for five years at the least.
Entertainment
of Tenders
134.(a) Tenders
which are in the prescribed form (when forms are prescribed) and are accompanied
by the requisite earnest money (if earnest money is prescribed) shall be
included for consideration provided they have been received before the time
prescribed for their receipt. Tenders shall be excluded in the following cases:—
(i) When the
tenders are not in the prescribed form (where forms are prescribed).
(ii) When the
tender is not accompanied by requisite earnest money (where earnest
money is prescribed).
(iii) When the
tender is not signed by the tenderer.
(iv) When the
tender is from a black-listed firm or a banned firm.
(v) When the
tender is received late.
(1) On no
account tenders received after the time fixed for the opening of the
tenders shall be considered.
(2) Tenders
received by post after the date and time fixed for their receipt,
but before the time fixed for the opening of the tenders shall
also be considered, provided the officer concerned is satisfied that the
delay occurred in postal transit.
Telegraphic
tenders, if received in time, may be included for consideration, provided
they are followed by confirmation and detailed tender with requisite
earnest
money, etc., within two days of the opening and also provided that such
detailed tenders are posted before the opening date. No tender
may be rejected for quoting for a part only, unless it is otherwise demanded
in the tender notice.
🆀Which of the following is not a reason for rejecting a tender?
(A)The tender is not accompanied by requisite EMD
(B) The tender received late
(C)The tender is not signed by the tenderer
(D)The representatives of tenderers are not present at the time of opening tender
Answer: (D)The representatives of tenderers are not present at the time of opening tender
🆀Which of the following is not a reason for rejecting tender?
(A)Tender received late due to postal delay
(B)The tender is not signed by the tenderer
(C)Tender is not in prescribed form
(D) None of the above
Answer:(D) None of the above
Acceptance
of Tenders
(Article.135)
135.(1) (i)
In selecting the tender/tenders to be accepted the financial
status and previous
performance, if any, of the tenderers should be taken into consideration in
addition to all other relevant factors.
Note:— When a
tender which appears to be satisfactory is received from an
unknown firm, steps should be taken before any order is placed to ascertain
whether the firm is capable of executing the contract in a proper manner.
If the result of enquiry proves satisfactory the order or a portion of it may
be placed with the firm. If any firm is to be ignored on grounds of unsatisfactory,
performance in respect of a previous contract, the decision should be
taken by Government.
(ii) The
various tenders should be compared in respect of price, quality, terms of
delivery, terms of payment, etc., other conditions being equal the lowest tender
should be accepted; and in cases where the lowest tender is not accepted
the reasons therefor should be recorded [see also item (v) below].
(iii) When
there are two or more offers for an article at the same rate and governed
by similar conditions, the contract may be divided equally among the
tenderers provided they are all well-known. Otherwise, the previous
contractor whose performance was satisfactory should be preferred.
(iv) In
selecting offers the cheapness, etc., of each individual item should be taken
into account.
(v) In
accepting tenders as above, producers and manufacturers in Kerala should be
given preference. Government Purchase Policy generally permits a price
preference up to 15 per cent or even upto 25 percent or even higher
in special
cases, for indigenous products over imported stores.
The following
price preference may be allowed for products of private industries within
the State over the products made outside the State:-
(a) Fifteen
per cent for industries, in which Government have taken shares.
(b) Ten per
cent for other industries.
(c) Fifteen
per cent of Industries of Charitable Institution registered under the
Travancore-Cochin Literary, Scientific and Charitable Societies
Registration Act XII of 1955, within the district of their location.
Note:— These
price preferences are subject to a ceiling of 25 per cent over
imported goods. As far as possible purchases will be made locally unless
the prices are substantially higher and the quality unsatisfactory. The
choice will, however, be subject to the price preference limits indicated
above.
(vi) When the
conditions regarding quality, price, terms of delivery, terms of
payment, etc., are equal, preference in making purchases should be given in
the following order:-
Firstly:– to
articles which are produced in Kerala;
Secondly:– to
articles which are produced in India in the form of raw materials
or are manufactured in India from materials produced in India;
Thirdly:– to
articles wholly or partially manufactured in India from imported
materials;
Fourthly:–to
articles of foreign manufacture held in stock in India;
Fifthly:– to
articles manufactured abroad, which need to be specially imported.
Note:— With the
view to applying the principles of preference given above, a
purchasing officer who invites tenders for supplying stores
should instruct the
tenderers to furnish information as to the country of origin
in the case of raw material, and as to both the country of manufacture
and the country of origin of the materials used for a manufactured
article.
(vii) As far as
possible firm price offers should be preferred to offers providing
for variation. Price variation conditions need be accepted only in
very special cases and in unavoidable circumstances. In the case
of articles which are usually subject to price variation the standard
price variation clause given to Annexure VII should be included
in the tender notice itself.
(2) The
acceptance or rejection of a tender is a matter entirely within the discretion of the
officer responsible for the purchase of the material, but a superior authority or the
Accountant-General may require him to justify the manner in which he has used his
discretion and give his reasons for rejecting any tender. No tenderer has any
right to be told the reasons for rejecting his tender, and reasons for rejection should
not be communicated to any tenderer.
🆀The communication of the reason for rejection of a Tender to the Tenderer is :
(A) Not allowed
(B) Done by the officer purchasing the material
C) Allowed only with permission of the Govt.
(D) None of the above
Answer:(A) Not allowed
🆀Who is the officer responsible for intimating the reason for rejection of a tender to the tenderer?
A:-The officer responsible for purchase of the material
B:-The officer who invited the Tender
C:-The head of Dept to whom the officer who invited the tender is a subordinate
D:-The reason for rejection of the tender will not be intimated to the tenderer
Correct Answer:- Option-D
(Article.136)
136 No Government servant shall deal with a tender in which he or any of his relations has any pecuniary or other interest. If any such cases comes before him in the course of his official duties, he should refrain from dealing with the case and should submit the case to the next higher authority for passing orders, indicating at the same time that he is not dealing with the case because of the interest. The relationship for the purpose of this rule will be as specified in section 6 of the Indian Companies Act, 1956 (extract given as Appendix XXIII to the Stores Purchase Manual). If any violation of this rule is detected it will be dealt with severely.
🆀A tender the total quoted amount of the lowest tender exceeded the sanction limit of the purchasing officer, then
A:-The tender may be rejected
B:-The tender may be submitted to the higher authority
C:-The tendering authority may pass the tender as there is sanction though it was for a lower amount
D:-Retender may be called for even though the tender is the lowest
Correct Answer:- Option-B
137. When owing to inadequate publicity or some other reason no satisfactory tender is received in response to an invitation to tender, fresh tenders should be invited and the invitation to tender should be specially brought to the notice of all possible tenderers. If considered desirable the services of
the Director General of Supplies and Disposals, New Delhi may be requisitioned.
138. When the total cost of the articles to be purchased at a time is beyond the financial powers of the purchasing officer he should forward the tenders received and other relevant records together with his recommendations to the higher authorities or Government, as the case may be, for orders.
Communication of Acceptance
139. (a) Save as provided in sub-paragraphs (d) to (f) below, when a tender has been once accepted finally such acceptance shall be communicated to the successful tenderer in the most expeditious manner and in any case before the period of firmness expires, if such period of firmness exists. A formal supply order should also be placed with the successful tenderer simultaneously. The supply order should furnish the description, quantity and price of the articles to be supplied. It should also prescribe the terms of delivery and the terms of payment. Clear despatch instructions should also
be given to the supplying firm.
(b) In cases where railway freight is to be borne by Government, the stores should be got down by goods train. In exceptional cases, transport by passenger train, lorry transport or by post may be resorted to, but the purchasing officer should record the reasons for adopting such a course.
Copies of the supply orders should be forwarded to the Accountant- General, to the officer who actually receives the stores and to the Sales-tax and Income-tax authorities. A standard form of supply order is given in Annexure VIII
# * * * * * *
(d) When the supply of stores is subject to the condition that the Department should produce Import License, formal supply order should be placed only after receipt of the license.
🆀For purchasing stores for Government departments, what procedures are needed in ascending order?
A:-Administrative sanction, Availability of fund, Tender and supply order
B:-Technical sanction, Tender, Quotation and Supply order
C:-Administrative sanction, supply order, delivery and quotation
D:-Tender, Administrative sanction, supply order and delivery
Correct Answer:- Option-A
Security and Agreement
140.(i) (a)
The Purchasing Officer should arrange to take a security from the successful tenderer for the due fulfillment of the contract equivalent to 5 per cent of the total value of the contract (rounded to the nearest rupee) subject to a minimum of ` 30 in case of 5 per cent(5%) value of contract falls below ` 30. All purchases costing below ₹1,00,000 will be exempted from the requirements of security deposit and written agreement subject to the condition that in such cases prices should be agreed upon in writing as provided in Article 51 and that payment will be made only after supplies are received, verified and taken to stock. The security may also be taken in Bank guarantees from Scheduled Banks (Annexure IX) and in any of the forms mentioned under Article 288. The personal securities of two persons of known probity and substance may also be accepted in exceptional cases, when there are special reasons for doing so.
🆀Security deposit is _______ of the total value of the contract in Stores Purchase.
A:-5%
B:-10%
C:-2%
D:-1%
Correct Answer:- Option-A
(b) The government or any authority authorised by Government may, when desirable, exempt a firm of established repute from the obligation to furnish security in respect of all contracts or for a particular contract or class of contracts made with any Department of Government.
(c) No security should be demanded or taken from any Government Institutions or any institutions listed in Annexure III, which supply stores. This provision will apply in the matter of purchase of stores from Government of India undertakings as well.
(d) Small scale Industries, cottage industries and industrial Co-operatives within the state which have been registered as such with the Industries Department (Department under the control of the Director of Industries and Commerce) on furnishing proof of such registration are exempted from furnishing security deposits against contracts for supply of Stores manufactured by them provided that an officer of and above the rank of Deputy Director of Industries and Commerce having jurisdiction over the area also certifies to the soundness and reliability of the
concerns to undertake the contracts #[In so far as Khadi and Village Industries Co- operative Societies within the State are concerned these powers will be exercised by the Secretary, Kerala Khadi and Village Industries Board].
[This amendment shall be deemed to have come into force with effect from 5-6-1975.]
(e) After a contract has been fulfilled and payment made, the security deposit should be released or refunded to the contractor/Firm without delay. As a rule, the security deposit should be released or returned to the contractor within a maximum period of three months of the expiration of the contract. In all cases where there is guarantee for the goods supplied the security deposit will be released only after the expiry of the guarantee period.
🆀The security deposit place for agreement after tender is released after
A:-Completion of Guarantee period, if there is guarantee period
B:-Completion of firm period
C:-Completion of three months if there is guarantee period
D:-After one year from purchase
Correct Answer:- Option-A
(f) No fresh security deposit need be demanded from firms for extended period of the rate contracts originally concluded with them. The security deposit obtained against the original rate contract may be considered as security for the extended period of the rate contract. In all such cases a supplemental agreement should be entered into with the rate contract holder for the satisfactory fulfillment of the extended contract. A standard form of supplemental agreement is given in Annexure XII.
(ii) In the matter of purchase of stores by the State Government Departments, Small Scale Industrial Units sponsored by the National Small Industries Corporation Limited, New Delhi and in respect of which competency certificates are issued by the Corporation will be exempted from payment of earnest money deposits and security deposits. This will not, however, apply in the matter of purchase of Stores on rate or running contract basis.
(iii) In case the earnest money deposited by the successful contractor if any, is less than the security deposit demanded the amount of earnest money may be treated as part of security deposit and the balance amount may be
called for from the firm. In other cases, full amount of security deposit should be called for from the firm. The earnest money submitted by all unsuccessful tenderers should also be refunded simultaneously.
#Addition C.S.No.7/75 [G.O.(P) No. 545/75/Fin., Dated 09/12/1975]
(iv) An agreement should be entered into with the successful tenderer embodying the conditions of the order and providing for the necessary penal clauses for any breach of the conditions of the contract. A standard form of agreement is given Annexure X. In the case of purchases costing above₹ 1,00,000 the purchasing officer shall forward a draft agreement to the firms along with the supply order directing them that the consignments need be sent only after executing the agreement. If any firm despatch the goods before execution of the agreement, they should be held liable for the demurrage charges, if any.
Note:— The agreements are liable to stamp duty but registration is optional Standard forms of quotation notice, supply order, bank guarantee and agreement are given in Annexures I, II, VIII, IX, X and XI.
Rate and Running Contracts
141. All stores of standard types other than those required in small quantities only, which are in common and regular demand and the price of which are not subject to appreciable market fluctuations may be purchased on the basis of a Rate or Running contract, whichever is most suited to the circumstances of each particular case.
In the case of articles which cannot be stocked conveniently in the departmental store with safety and convenience, the system of running contracts should be adopted. A running contract is a contract for the supply of an of approximate quantity of stores at a specified price during a certain period .
Running contracts may be settled for the supply of articles at intervals during a whole year or a part thereof. Dietary articles, firewood, charcoal, raw materials
for Ayurvedic medicines etc., come under this group. In settling running contracts all the rules relating to the ordinary contracts like invitation of tenders, earnest money etc., should be followed, and in addition, special provision should be made to safeguard Government interests and to ensure regular supplies. It is important that for all running contracts, tenders with earnest money should be invited irrespective of the amount involved.
A rate contract is a contract for the supply of stores at specified rates during the period covered by the contract No quantities are usually mentioned. in the contract, and the contractor is bound to accept any order which may be placed upon him at the rates specified within the contract period.
As a reciprocal consideration the Government undertakes or order from the contractor all stores under the contract which are required to be purchased subject to certain reservations for submitting prices to competition and for deciding the contract between one or more contractors.
Rate contract should be settled for such articles as are required frequently by many Departments during the course of an year for which the quantity cannot be forecast.
Rate contracts also may be settled for one year or shorter definite period. Indenting Officers can draw their requirements direct from the contractors as and when required.
Steel furniture, Steel cupboards and M.T. Batteries, Sewing Machines, etc., are some of the items coming under this group.
Running contracts may be settled by Heads of Departments and Departmental Purchase Committees, but
rate contracts will be settled by the Stores Purchase Department only.
The Director General of Supplies and Disposals, New Delhi is concluding every year rate and/or running contract for a number of articles. Purchasing Officers can avail themselves of these contracts, wherever it is economical and easier to do so. They should keep themselves conversant with the rules
and procedure of the Director General of Supplies and Disposals Rate Contracts. The Stores Purchase Department is also concluding every year rate contract for a number of articles. In respect of purchases as per rate contracts settled by the Director General of Supplies and Disposals and the State Government, purchase sanction from Government is not necessary, even if the value of the purchase exceeds the purchase powers of the Purchasing Officer provided that it is specified while issuing administrative sanction, that the purchase will be made as per Director General of Supplies and Disposals/State Rate Contracts. In such cases, the selection of the type and make of the articles to be purchased will be made by the Purchasing Officer. It is not necessary to mention the name of the firm or description of stores etc., in the administrative sanction issued for the purchase.
In the case of items for which rate/running contracts settled by the Stores Purchase Department exist or a running contract settled by the Head of Department exists, it is obligatory for Government Departments to avail themselves of those contracts. The agreement form to be used in the case of running/rate Contract is contained in Annexure XI.
RATE CONTRACT
1. Rate contract in Kerala is concluded by ________.
A:-Finance Department
B:-PWD
C:-Store Purchase Department
D:-Head of the Department
Correct Answer:- Option-C
2. A _________ contract is a contract for the supply of stores at specified rates and specified period.
A:-Rate contract
B:-Lump sum contract
C:-Running contract
D:-Negotiated contract
Correct Answer:- Option-A
3. In Store Purchase what factor is not mentioned normally in a Rate Contract
A:-Price
B:-Rate
C:-Quantity
D:-None of the above
Correct Answer:- Option-C
5.In a Rate Contract, the supply of stores are expected in ____________ rates during the period covered by Contract.
A:-Fixed
B:-Specified
C:-Flexible
D:-NOTA
Correct Answer:- Option-B
6. A contractor is bound to accept any order for supply of any quantity of stores, if he has settled for a :
(A) Running Contract
(B) Rate Contract
(C) Running and Rate Contracts
(D) None of the above
Correct Answer:- (B) Rate Contract
7.In the Government of India, who concludes every year rate and or running contracts for a number of articles
A:-Central purchase organisation
B:-The Director General of supplies and disposals
C:-Ministry of small and medium industries
D:-Ministry of commerce
Correct Answer:- Option-B
8. Which Department of the State Government is authorized to settle Rate contracts?
A:-Stores Purchase Department
B:-Finance Department
C:-Major Heads of Departments
D:-Stationery Department
Correct Answer:- Option-A
9. What is the maximum quantity of stores that can be purchased on the basis of Rate contract?
A:-The maximum quantity as provided in the contract
B:-No maximum limit, The contractor is liable to supply any quantity for which orders may be placed during the period of contract
C:-Any quantity already agreed by the contractor
D:-None of the above
Correct Answer:- Option-B
RUNNING CONTRACT
1. Running contracts may be settled by
A:-Stores Purchase Department
B:-Head of Department and Department Purchase Committee
C:-Finance Department
D:-Head of Office
Correct Answer:- Option- B:-Head of Department and Department Purchase Committee
2. What is the important point to be borne in mind when settling a running contract for the supply of dietary articles?
A:-Tenders with earnest money should be invited irrespective of the amount involved
B:-Tenders need not be invited
C:-Earnest money need not be insisted on
D:-Running contracts will have to be settled by the Store Purchase Department
Correct Answer:- Option-A:-Tenders with earnest money should be invited irrespective of the amount involved
3. A running contract is a contract for the supply of an approximate quantity of stores at a __________ price during a certain period.
A:-Fixed
B:-Specified
C:-Market
D:-Competitive
Correct Answer:- Option-B
Negotiated Contracts
(Article.142)
142. When owing to greater promptitude of supply, by particular agencies of special manufacture of some articles by certain firms, substantial economy can be effected by deviating from the tender system, officers may, after negotiation purchase direct such articles from the firms or agencies concerned. This rule will apply only to patents and specialities to which tender system cannot be applied with advantage (vide also Article 126).
🆀Negotiated contract is as per ___________ of KFC Vol - 1.
A:-Art 85
B:-Art 38
C:-Art 142
D:-Art 185
Correct Answer:- Option-C:-Art 142
Examination of contracts by the Accountant General
143. The Accountant General in the exercise of his audit functions will examine contracts settled by the departments and report to the Government the facts of any case that come to his notice, in which competitive tenders where not invited though they should have been invited under the rules or a tender other than the lowest was accepted without sufficient jurisdiction, or any
other materials irregularity which has been committed in connection with a contract.
Insurance of Government Property
144. In the case of goods imported from abroad, insurance charges are payable by Government, when the purchase price includes cost, insurance and freight of the goods as delivered at any Port of Entry in the State. In f.o.b. or f.a.s. contracts also insurance charges are payable by Government. In all cases of contracts where the supplying firm does not undertake insurance at its cost, the purchasing officer should arrange for insurance himself against risks in transits such as loss, damage, etc.
Insurance is essential in the case of fragile goods, costly machinery, equipments, delicate machines and instruments and such articles which deteriorate or otherwise becomes useless in transit.
Claims in respect of Imported Stores, lost or damaged
(Article.145)
145. (i) Purchasing Officers should see that in the case of loss or damage of imported stores, claims are promptly made against the shippers, the landing and clearing contractors of the supplies, according to circumstances or the Marine Insurance Company. A loss will be chargeable against Marine Insurance only when the responsibility for the loss or damage can not be fixed on the shippers, the landing contractors or the suppliers and recoveries should be made accordingly. In any case, loss or damage has to be reported promptly to the authorities concerned.
(ii) The report of loss or damage should show the particulars contained in the instructions in the packing account, namely description of stores, details of numbers and, where necessary, sizes and quantities, and when articles are missing the gross weights of packages as received. In all cases where defects noticed can be rectified locally the probable cost of such local repairs shall be specified. “Details of Recoveries” already effected or proposed to be
effected should also be mentioned. If no recovery has been made the fact and reasons therefore should also be reported. .
(iii) Marine Insurance does not cover risks after the movement when the stores leave the ship’s side, i.e., during landing, and it is therefore essential that brittle stores such as stoneware pipes, R.C. pipes, glassware, etc., should be landed at places of safety. Such stores should be landed at the ports only when the risk of breakage is at a minimum. Indenting Officers should clearly indicate in there indents whether any of the indented articles should be so delivered.
(iv) In all cases in which stores from foreign countries are purchased arrangements shall be made to obtain three sets of documents. One set shall be caused to be forwarded at the earliest possible date to receiving agents or clearing agents if such agents are appointed; one set will be caused to be similarly sent to the indenting officer and the third set to the Secretary, Stores Purchase Department or the Head of the Department. On receipt of the shipping documents, the indenting officer will issue necessary instructions to the receiving agents in the matter of transmission of packages, etc., copies of such correspondence being simultaneously forwarded to the Secretary, Stores Purchase Department or the Head of the Department.
Insurance on Railways or Lorry Transport
or Inland Water Transport
146. When the terms of delivery accepted by the Purchasing Officer are ex-factory or ex-godown or f.o.r./f.o.b. place of despatch, the charges for onward transmission including freight and insurance have to be borne by Government. Insurance of articles supplied from sources in India is optional, but in all cases in which damage is likely insurance is advisable.
Receipt and Verification of Stores
147.(i) The Officer authorised to receive stores should himself verify the articles received with reference to the approved samples, if any and take them to stock soon after they are received. Any articles which is not new, or which
does not conform to standard specification or to approved samples or which is different from those ordered for or which is damaged or defective in any respect should not be accepted.
(ii) Stores which arrive by ship or railway or lorry or any other mode of transport should be taken delivery of immediately after arrival to avoid demurrage etc. Sanction of Government is necessary to pay demurrage, subject to however, to the powers delegated to the Purchasing Officers.
(iii) Any loss, shortage or damage of any defect noticed on checking stores should be promptly brought to the notice of all concerned. Any claim for loss, etc., should be preferred on the suppliers or transporting agents or insurance company, as the case may be, immediately after the stocks are received.
(iv) Heads of Departments can accept late supplies after recording the reasons therefor upto two months after the prescribed date of delivery. For further period, in the case of purchases costing below 40 lakhs, the orders of the Secretary to Government of the concerned Department should be taken and in the case of purchases costing above 40 lakhs, the proposals should be sent to the concerned Departmental Purchase Committee. Director of Printing and Stationery can accept late supplies upto 3 months in respect of purchases for which he is competent to sanction. The Director of Health Services can accept late supplies upto four months provided no loss on account of such extension of time is incurred by Government.
Payment for Stores
148.(a) (i)For stores purchased in India.— As a general rule, payment for supplies is not permissible unless stores have been recieved, verified, and taken to stock and provision for the observance of this rule should ordinarily be made in all contracts for the supply of goods.
(ii) Payment prior to verification of quantity and quality of material is permissible only in very exceptional cases in which the operation of
the rule in the above paragraph might result in hard- ship, as for example, when costly stores are ordered from a distant firm and delay in payment is anticipated. In such cases a part of the cost of the consignments (not exceeding 90 per cent) to a distant firm may be paid in advance on receipt of the railway receipt for despatch or bill of loading provided the firm or contractor is of well-known standing and provided an agreement is taken before-hand, with the contractor or firm to secure Government against all loss in the event of materials being found short or defective on checking.
(iii) In every exceptional cases, payment upto the full value against proof of despatch may be made with the prior sanction of Government. *Heads of the Departments may effect 100% payment in very exceptional cases, if the amount involved is less than ` 50,000 and the conditions mentioned in sub-rule (ii) above are satisfied.
(Article.148(ii)
(iv)The Officer who maintains the stock register must himself receive the new stock. Whenever a new purchase has been sanctioned and the bill for drawing the money required is ready, it must be forwarded to the officer entrusted with the maintenance of the stock register, who should certify on the office copy of the bill that the new purchase in question has been duly taken on to the stock account. In those rare cases in which it is not possible to receive stock before payment is made, e.g., when articles are received by rail or post and payment is made against documents, the officer-in-charge of stock accounts should verify the new stock or receipt and furnish a certificate of verification which should be filed with the office copy of the bill concerned.
🆀 The materials and stores purchased should be brought into
A:-Personal Account
B:-Stock Account
C:-Tender Register
D:-Indent Register
Correct Answer:- Option-B
(v) Payment should ordinarily be made immediately after the stores are taken to stock. In no case should the payment be delayed for more than thirty days from the date of receipt of stores. If in any case delay in payment is anticipated, the officer who is competent to make payment should intimate the supplier concerned the reasons for such delay.
🆀Payment for stores purchased should not be delayed for more than __________ from the date of receipt of stores.
A:-90 days
B:-60 days
C:-45 days
D:-30 days
Correct Answer:- Option-D
(vi) The firms will produce stamped pre-receipted invoices in all cases where payments (advance/final) for release of railway receipts/shipping documents are made through Banks.
In exceptional cases where the stamped receipts of the firms are not received for the payments (in advance) the unstamped receipt of the Bank (i.e. counterfoils of pay-in-slips issued by the Bank) alone may be accepted as a valid proof for the payment made.
Note:— It is important that payment of bills should be made as expeditiously as possible after their presentation, as otherwise claims for interest might arise ending in litigation. Such a contingency should be avoided.
(b) Payment for foreign purchase.—
(i) Payments should be made in Rupees in India. Payment in any other currency and in any other country requires prior sanction of Government.
🆀Payment of Stores for foreign purchases shall be made in Rupees in India. Payment in any other currency of or any other country requires prior sanction of
A:-The Comptroller and Auditor General of India
B:-The Accountant General (Audit of the State)
C:-Government of Kerala
D:-Reserve Bank of India
Correct Answer:- Option-C
(ii) Payment to firms abroad is arranged by the Accountant General through the State Bank of India or any other bank on production of invoices, etc., supported by the certificates of the inspection agents, if any. The invoice received by the Purchasing Officer will be transmitted to the Accountant-General after counter-signature by competent authority with the stock certificates, and the head of debit noted thereon.
🆀_________ will arrange the payment for Stores purchased from foreign countries.
A:-Indian Embassy
B:-Central Finance Dept.
C:-Ministry of foreign affairs
D:-Accountant General
Correct Answer:- Option-D
(iii) Payment for supplies arranged by the Accountant General through by India Stores Department, London or the India Supply Mission, Washington will be made in accordance with the terms of payment agreed to by those bodies with the contractors. All such payments will be arranged by the Accountant General.
(iv) In respect of foreign orders in which payment of a portion or full value of the articles against shipping document or on arrival of the goods at the port is stipulated in the contract, under proper authority, such payments will be authorised by the Accountant General immediately on receipt of information from the Purchasing Officer that the documents have been received by the Bank from the suppliers or that the goods have arrived at the port. The balance value, if any, will be arranged to
be paid on receipt by the Accountant General on a requisition from the Purchasing Officer with the necessary certificates in the invoice.
(v) In the case of balance withheld in the first instance from the firm’s invoices and which have to be authorised for payment after verification of the materials by Departments, the officers concerned should see that the materials are verified immediately on receipt and that requisitions to the Accountant General for the payment of the balances withheld are issued not later than a month from the date of receipt of the materials.
(vi) In cases in which there is no agreement regarding payment in advance, payment will be arranged only after the articles have been actually received and brought to account.
(vii) In the case of advance payments to be made with order or during the course of manufacture or before despatch of materials prior sanction of Government is necessary.
(viii) Since payments in any foreign currency require the sanction of Government of India no Purchasing Officer should make any commitments to pay in foreign currency before obtaining such sanction.
(ix) The firms will produce stamped pre-receipted invoices in all cases where payments (advance/final) for release of railway receipts/shipping documents are made through Banks. In exceptional cases where the stamped receipts of the firms are not received for payments (in advance) the unstamped receipt of the bank (i.e., counterfoils of pay-in-slips issued by the Bank) alone may be accepted as a valid proof for the payment made.
Stock Accounts
149.(1) The head of an office or any other officer who is entrusted with stores of any kind should take special care in arranging for their safe custody. He should also maintain suitable stock accounts or inventories for the stores in his
custody with a view to preventing loss to the Government through theft, fraud, negligence or accident, and to making it possible to check the actual balance with the book balance and the expenditure on stores at any time. It is important that each item of receipt and issue (or disposal) of stores should be recorded concurrently as it occurs in the registers.
(2) The form of the stock account has to be settled with reference to the nature of stores, the frequency of transactions and the special requirements of each department. The same form of stock account would not be suitable both for consumable articles such as dietary stores kept for use in a hospital or jail and also for ordinary office furniture. Ordinarily each office should keep its stock account or accounts in the form and according to the instructions laid down in any general or special orders of the Government which apply to the departments concerned or in the departmental manual, code or orders. If no such forms and instructions are available, or if they are available but a competent authority has held that they are defective, then the stock accounts should be kept in accordance with the instructions in Articles 151 and 152 below.
*(3) In the case of departments (other than those rendering monthly compiled accounts to the Accountant-General under the P.W.D. system) where consumables (other than items debited to office expenses) are purchased and/or where non-consumable articles are purchased centrally for distribution among Subordinate Officers/ private parties, the officers listed in Appendix 2A should, on or before the 30th June every year, forward to the Accountant-General consolidated stores and stock accounts of the departments for the immediately preceding financial year. Machinery, tools, equipments etc., purchased by such officers for exclusive use in their offices need not be included in the consolidated stores and stock accounts.
🆀One of the following heads of department is included in the list of officers responsible to forward consolidated stores and stock accounts to the accountant general.
A:-Director of state audit
B:-Director of social justice department
C:-Director of public relations
D:-Director of Economics and statistics
Correct Answer:- Option-C
150. Separate stock accounts should be maintained for:—
(a) Raw materials and expendible stores used in manufacturing departments, etc.
(b) Office furniture including all office stores except books, forms and stationery.
(c) Books, forms and stationery.
(a) Stock accounts of raw materials and expendible stores.— The stock accounts required on account of raw materials and expendible stores include day-books of receipts and issues for recording the transactions as they take place and a ledger for each kind of article showing the receipts, issues and balances. If no specific forms and rules have been prescribed for a department. Forms 16 and 17 should be used for this purpose.
🆀A Register in Form 16 should be maintained to show the details of
A:-Day book of stores
B:-EMD received
C:-Late tender received
D:-Security Deposit received
Correct Answer:- Option-A
🆀KFC Form 17 is related to _____________.
A:-Stock Account of Furniture
B:-Utilisation of Grant
C:-Tender Details
D:-Stock book of stores and dead stock
Correct Answer:- Option-D
(b) Stock account of office furniture and stores.— Every Head of Office should maintain a stock account of furniture and all other stores (except books, forms and stationery) in Form 18 showing the number received, the number issued or disposed of (by transfer, sale, loss, etc.) and the balance in hand for each kind of article separately. When an office is large and the furniture, etc., is kept in several rooms, the Head of the Office may have an inventory of the furniture, etc., kept in each room exhibited in the room and kept up-to-date in order to facilitate the annual verification of stock and fix the responsibility for any loss that may occur.
🆀Every Head of Office should maintain a stock account of furniture and all other stores in Form No.
A:-15
B:-17
C:-19
D:-18
Correct Answer:- Option-D
(c) Stock account of books, forms and stationary.— Every Head of Office should also maintain stock accounts for forms and stationery in accordance with the rules in the Stationery Manual and also a register in Form 19 of the books belonging to the office.
Note 1:— The term ‘books’ will include catalogues, periodicals etc.
Note 2:— Government libraries and museums should maintain catalogues as well as the prescribed stock accounts or inventories.
Valuation of Stores in Stock Accounts
151 When a period inventory is maintained, the value recorded in it for any item should not materially exceed its current market value. The Head of the Department concerned should issue necessary instructions to ensure that the stores are valued with reasonable accuracy and that the rates adopted are reviewed at suitable intervals by a competent authority.
152 Stores should be issued as far as possible on indents passed by an officer who has been duly authorised to pass them. Every issue should be recorded in the stock account at the time when it is made.
In respect of transactions between a main store and the sub stores under it, it is essential that there should be complete reconciliation of the issues from the main store and the receipts in the subsidiary stores to which issues are effected from the main store. The inspecting officers and other departmental officers should specially bear this point in the mind while conducting stores inspection.
Inspection of Stores
153.
No Government servant should hold stores in stock in excess of the quantity likely to be required for a reasonable period. To ensure that this rule is observed, a responsible officer of the Department should inspect all perishable stores once in each half-year and all the other stores once a year unless there is sufficient reason (which should be recorded) to the contrary. If he considers that any of the stores inspected is obsolete or in (excess of reasonable requirement, he should submit a report to the competent authorities either to sanction the write off of a loss of cash equivalent to their value or to transfer the surplus stores to other Departments/ Offices which may require them and also to include them in the list of surplus stores. These authorities should then pass orders as to the disposal of such stores. Heads of Departments and Offices should also review the stock position of the various stores under them as on 31st March of a year in the
month of May of the succeeding financial year and take steps to dispose of materials which have become unserviceable or are likely to become unserviceable in the near future. A copy of each of such review should be sent to Government in the administrative Department and the Finance Department so as to reach Government before 15th June of each year.
🆀A responsible officer of the Department should inspect all perishable stores ________.
A:-Once in 3 months
B:-Once in a month
C:-Once in each half year
D:-Once in a year
Correct Answer:- Option-C
🆀What is the periodicity of inspection of perishable stores?
A:-One year
B:-Once in six months
C:-Once in three months
D:-Once in two months
Correct Answer:- Option-B
🆀Heads of departments and officers should review the stock position of the various stores under them as on 31st March of the year in the month of __________ of the succeeding financial year.
A:-April
B:-June
C:-May
D:-July
Correct Answer:- Option-C:-May
Unserviceable and Surplus Stores
154. Subject to any special orders issued by Government as applicable to individual cases, stores which are found to have become unserviceable in the ordinary course or by fair wear and tear may be condemned by the authority competent to authorise replacement by purchase. Full reasons for condemning such unserviceable stores must be recorded on such orders together with a certificate to the following effect:—
“Certified that I have personally satisfied myself that each item written off in these proceedings has become unserviceable in the ordinary course through proper usage or by fair wear and tear.”
Note:— Separate sanction for write off of losses is not necessary where the stores are bodily present. It is only in such cases where the stores are missing (as in cases of fire, theft, etc.) that formal sanction for write off of losses will be necessary.
🆀Stores which are found to have become unserviceable in the ordinary course or by fair wear and tearà´¤േà´¯്à´®ാà´¨ം, may be condemned by :
(A) The authority competent to authorise replacement by purchase
(B) Head of Office
(C) Head of Dept.
(D) None of the above
Answer:-(A) The authority competent to authorise replacement by purchase
155. (a) The authority referred to in the preceding Article may also condemn stores found at any time to have become unserviceable, otherwise than in the ordinary course or by fair wear and tear (e.g., by avoidable carelessness or neglect, misuse, etc.) but this should not be done until after their value has been written off by the authorities competent to write off a loss of cash equivalent to their value or the recovery of the balance has been effected from the persons responsible .
The value of stores for purpose of Articles 153 to 157 shall be taken to be their book value where priced accounts are maintained, and where these are
non-existent or suspect, their “replacement value”, i.e., market value (at the time of issue of sanction for the disposal/write off) of such new articles or articles of similar nature.
(b) When any stores become unserviceable or depreciate otherwise than in the ordinary course or by fair wear and tear, their value or the amount of such depreciation, as the case may be, should be treated as a loss to the Government within the meaning of Article 297 and the procedure prescribed therein should be strictly followed in reporting any such loss (See also Article 301).
156.
Stores which have become unserviceable otherwise than in the ordinary course or by fair wear and tear, should never be condemned in the same order along with stores which have become unserviceable in the ordinary course or by fair wear and tear. Separate orders should be passed dealing with the stores in each of the two classes-each order should indicate the causes leading to the stores having become unserviceable or obsolete and should state how the condemned stores are to be disposed of, i.e., whether by sale or by destruction, since stores should be condemned only when they cannot be made serviceable by repairs at a reasonable cost. A copy of such order should be endorsed to the Accountant-General. Condemned stores which are quite worthless should be ordered to be destroyed. Other condemned stores should as far as possible, be sold under the orders of the authority competent to write off a loss of cash equivalent to their value and the sale proceeds credited to Government. The sale proceeds should not be taken into account for determining the value of the stores as this amount is to be treated as a miscellaneous receipt of the department concerned. The Head of the Office should record full particulars regarding all condemned stores in suitable lists from which their disposals can be checked.
🆀Condemned stores which are quite worthless should be
A:-Kept for two years
B:-Produced before the Inspection Party/AG
C:-Sold after taking orders from Head of Office
D:-Destroyed
Correct Answer:- Option-D
Note:— In all cases where the stores are condemned the orders should be supported by a survey report in Form 21.
156A. Where articles are to be sold by public auction, the Head of the Office or any other Gazetted Officer authorised by the Head of the Office should invariably attend the auction and record the final bids. Wide publicity should be given before conducting the auction and the form of publicity should conform to the rules prescribed in the departmental manuals. In the absence of any provision in this regard in the departmental manuals, the officer sanctioning the sale shall decide the nature of publicity to be given, with due regard to the assessed value of the articles to be sold.
2 A register in Form No. 20 should be maintained by the officer authorised to conduct the auction and all the columns in the register should be filled up at each stage of the auction. A separate page or folio should be set apart in the register for each auction.
3. An earnest money deposit at the rate of 1 per cent of the assessed value of the articles to be sold subject to a minimum of ` 10 may be realised from the intending bidders before the commencement of auction. The earnest money shall be returned to the bidders immediately after the auction except in the case of successful bidder, in whose case the amount will be adjusted against the sale price due from him. In the event of the highest bid being found unreasonably lower than the assessed value of the articles, the officer authorised to conduct the auction may cancel the auction, in which case the earnest money deposited by the bidders including that by the highest bidder shall be refunded instantly, obtaining proper acquittance in each case. While arranging re-auction, the Head of the Office shall consider whether greater publicity is needed in order to attract more participants at the re-auction. The procedure for the re-auction will be same as for the original auction.
🆀For the auction of unserviceable articles, earnest money deposit at the rate of _________ percent shall be collected from the bidders.
A:-5
B:-10
C:-2
D:-1
Correct Answer:- Option-D
🆀Earnest money deposits made by intending tenderers are credited to
A:-Personal deposit
B:-Revenue deposit
C:-Civil Court deposit
D:-Security deposit
Correct Answer:- Option-D:-Security deposit
4 Soon after confirmation of the auction by competent authority, the successful bidder shall deposit the bid amount in full less earnest money deposit. Articles sold at the auction shall on no account be retained in the
office for long. The period for which they will be kept and that too at the risk and loss of the successful bidder may be notified before the conduct of the auction and the written consent of the bidder therefor, obtained. In the event of failure to take delivery of the articles after the stipulated time, the articles may either be arranged to be re-auctioned or released to the original bidder himself on realisation of such retaining fee as may be reasonable in each case. In the event of re-auction the successful bidder at the previous auction shall forfeit the amount remitted by him. This position may be brought out clearly in the notice relating to the auction and the written consent of the bidders to this condition obtained prior to the auction.
5. The Head of Office or any other authorised officer should be present when the articles sold are released, his presence being most essential when the release of the articles takes place sometime after the auction or when it involves processes such as weighments etc. A sale account in Form No. 20-A should be prepared and signed by the officer who supervised the auction. If the articles are released in the presence of an officer other than the one who supervised the auction, the entries in the sale account should be attested by the dated signature of such officer.
🆀A successful bidder in a tender failed to execute agreement, then
A:-His EMD is to be forfeited to Govt.
B:-The contract has to be re-arranged
C:-Loss on rearrange has to be recovered from the bidder, failed to execute agreement
D:-All the above
Correct Answer:- Option-D
157. Stores remaining in stock for over a year should be considered surplus unless there is sufficient reason to treat them otherwise.
🆀Normally stores remaining in stock for how many years can be considered as surplus
A:-Over 5 years
B:-Over 3 years
C:-Over 1 year
D:-Over 4 years
Correct Answer:- Option-C
The previous sanction of the competent authority should be obtained for the sale of stores regarded as surplus.
If on verification it is found that stores are held in surplus the Head of Office should make out a list of such surplus stores with essential details and forward it to the Head of the Department (See also Articles 128 and 129.)
Government departments should be treated as priority indentors for these surplus stores. No sale of these stores should be made until it is assured that no Government Department requires them.
Note:— The procedure detailed in Article 156A should be followed when surplus stores are disposed of. A report of the surplus stores for disposal should also be prepared in Form 22 and signed by the Head of Office or other gazetted officer authorised by the Head of the Office. The entries in the Sale Account should be compared with this report before the officer who supervised the auction, signs the Sale Account.
Verification of Stores
158. All stores should be verified periodically in the manner prescribed for each Department and at least once a year. In the Stationery Department a complete physical verification of the stock need, however, be made every two years only.
🆀No Govt. supplied machine in an office should be rejected as worn out and unfit for use until it has been
A:-Examined by Accountant General
B:-Examined by Stores Purchase Department
C:-Examined by Head of the Department
D:-Examined by the Stationery Department
Correct Answer:- Option-D
Subject to any special rules or orders, a Government servant who is in charge of any expendible stores or raw materials should check them at least once a year and send a verification report to the controlling authority. The latter should also check the stock account when inspecting the office.
Furniture and other office stores should be verified at least once a year. If the office is a large one and the Head of office cannot do the whole verification himself without undue inconvenience, he may entrust it, or such part of it as he thinks fit, to a gazetted officer serving under him or to the head ministerial officer of the office, but the Head of the Office will be held personally responsible for the proper maintenance of the stock account and correctness of the verification report whether he conducts the verification himself or gets it done by some one else. The Head of the Office should sign a certificate of check after each verification and submit it to the controlling authority, if there is one.
The verification of stores prescribed in this article should never be entrusted—
(i) to a low paid subordinate ; or
(ii) to the custodian, the ledger-keeper or the accountant responsible for the stores to be verified, or to a person employed under the custodian, the ledger-keeper or the accountant; or
(iii) to any one who is not conversant with the classification and nomenclature of the particular classes of stores to be verified and the connected technique.
🆀The periodical verification of stores prescribed as per KFC should never be entrusted
A:-to a gazatted officer
B:-to a low paid subordinate
C:-to an officer with charges budget preparation
D:-to an officer just below the rank of head of office
Correct Answer:- Option-B
As far as possible, the verification of large stocks and stocks of important stores should be entrusted to a responsible officer who is independent of the superior executive officer in charge of the stores . Stores should always be verified in the presence of the officer responsible for the custody of the stores or of a responsible person deputed by him to watch the verification.
Note:—
The following procedure should be observed for the audit of the accounts of furniture in the Raj Bhavan:¬
An annual certificate of verification should be sent by the Military Secretary to the Governor so as to reach the Accountant-General, Kerala on or before the 31st July of each year stating that all furniture has been inspected and checked with the stock list maintained and that he is satisfied (i) that all new supplies up-to-date have been correctly brought on to the inventories, (ii) that the inventories are correct in all respects, (iii) that the articles in stock agree with the inventories, (iv) that sale proceeds have been properly accounted for, (v) that sanctions of competent authority exist for all articles written off the inventory, and also (vi) the articles of furniture are being properly maintained and are kept in serviceable order.
Unserviceable articles may be sold and written off the stock list at the discretion of the Governor, but no valuable articles should be sold unless they are certified to be worn out, or have become useless, independently of considerations of personal taste. The amount realised from the sale of unserviceable articles should be credited to State Revenues.
159. Apart from the periodical verification of stores by the Heads of Offices and other Government servants authorised in this behalf under the preceding
article, surplus check of stocks and stores should be undertaken by the superior officers in each Department at intervals at least once a year so as to ensure that stores are properly maintained and accounted for. It is necessary that the inspection should be a surprise one; but the check may be confined to important items. The results of such surprise checks should be reported to the Government in the concerned administrative department with the recommendation, if any, of the inspecting officer so as to enable the Government to take prompt and adequate action wherever necessary. The results of the surprise inspections and the orders, if any, passed should be communicated to the Accountant-General by Government in the Administrative Department.
(Article.160)
160. Whenever an officer who is entrusted with the custody of stores in an office is transferred, the relieving officer should verify the stock of stores with the stock accounts certify on the stock accounts as to the correctness of the stock taken over and report the result of the verification to his immediate superior. For the purpose of this rule the Government servant entrusted with the custody of the stores is ordinarily the Head of the Office, but in a large office he may delegate this duty to a gazetted assistant, manager or recognised store-keeper. When he has done so, the verification prescribed in this Article need only be made, unless otherwise ordered in any case, when a Government servant to whom the duty has been delegated is transferred and the result of the verification should always be placed before the Head of the Office. In spite of any such delegation, the Head of the Office still will be responsible for furnishing the certificate prescribed at the foot of the various contingent bills, etc., stating that the articles billed for have been brought into account, and for exercising a general control so as to ensure that the stores are properly safeguarded and the stock accounts properly maintained.
Discrepancies found on Verification of Stores
161. A deficiency detected during a verification of stores may be due to:
(i) incorrect or careless accounting;
(ii ) loss arising from fraud, theft or negligence; or
(iii) an unavoidable cause, e.g., wastage, shrinkage, spilling, etc., in the case of stores which are subject to them.
The Head of the Office or institution concerned should fully investigate the causes of any deficiency and send a full report on it to the controlling authority along with the verification report. If he holds that any loss caused to the Government through a deficiency is due to misconduct or culpable negligence on the part of any Government servant concerned, he should add his recommendation as to how the loss should be made good by recoveries from him. The controlling authority should, after such examination and investigation as the importance of the case warrants, issue or obtain from the competent authority, an order to write off the deficiency from the stock accounts. On receipt of this order the deficiency should be charged in the stock accounts with a note quoting the authority. If any recovery is ordered, a note should be recorded in the stock accounts when each amount is actually recovered.
Any excess detected during stock-taking should, after investigation, be entered in the stock accounts at once as a receipt with the remark “excess found on stock verification”. No special orders are necessary for this.
In the Annual Administration Report sent to Government the Head of the Department should furnish information as regards :
(i) The condition in which stock registers are maintained in his office and the offices subordinate to him.
(ii) Result of periodical verification of stock, and
(iii) Action taken for the adjustment of deficiencies, excesses, etc., if any, noticed during stock-taking.
🆀Loss of stores may occur due to depreciation. Other causes of loss of stores may be
A:-Theft
B:-Fire
C:-Flood
D:-All the above
Correct Answer:- Option-D
🆀If discrepancies found as verification of store the procedure as per, article _________ of KFC may follow.
A:-118 of KFC Vol - I
B:-102 of KFC Vol - I
C:-161 of KFC Vol - I
D:-144 of KFC Vol - III
Correct Answer:- Option-C:-161 of KFC Vol - I
🆀If the liability of a Gazetted officer is not estimated and who is in charge of cash or store, _________ of DCRG is to be withheld.
A:-1/4
B:-2/3
C:-Full
D:-1/2
Correct Answer:- Option-C
Audit of Stores and Stock Accounts
162. The regulations and rules relating to the audit by the Accountant-General of the accounts of stores and stock kept in Government Departments are contained in Appendix 2.
🆀Who conducts the audit of stores and stocks
A:-Store Purchase Department
B:-Comptroller and Auditor General
C:-Finance Department
D:-Accountant General
Correct Answer:- Option- B:-Comptroller and Auditor General
The cost of tender form may be accepted in the form of
ReplyDeleteA:-Promissory note
B:-Bank Guarantee
C:-Cash
D:-Postal order
Correct Answer:- Option-C
Copies of tender notices issued by purchasing officers will be sent to __________ for information.
ReplyDeleteA:-Economics and statistics dept.
B:-Indian standard institution
C:-Central statistical organisation
D:-Accountant General
Correct Answer:-Option-B
The minimum time allow tenderer to submit tender for ordinary stores which can be procured within the country is
ReplyDeleteA:-3 months
B:-21 days
C:-one month
D:-15 days
Correct Answer:-Option-C
The Earnest Money Deposit for stores purchase tender may not be accepted as
ReplyDeleteA:-cash
B:-Govt. Promissory note
C:-Cheque
D:-Demand draft
Correct Answer:-Option-C
__________ register is maintained in KFC Form 15.
ReplyDeleteA:-auction
B:-stock
C:-tender
D:-day book
Correct Answer:-Option-C
Security deposit is _______ of the total value of the contract in Stores Purchase.
ReplyDeleteA:-5%
B:-10%
C:-2%
D:-1%
Correct Answer:-Option-A
Rate contract is settled by
ReplyDeleteA:-Head of Dept.
B:-Stores purchase Dept.
C:-Finance Dept.
D:-Accountant General
Correct Answer:-Option-B
The first stage to be taken by an officer who has to purchase stores for the Public Service is to
ReplyDeleteA:-Nominate an officer to oversee the whole purchase
B:-Ascertain whether funds are available for payment when supplies are made
C:-To prepare an annual indent of stores required during the next financial year
D:-Approximate price of the articles required may be ascertained from the open market
Correct Answer:- Option-C
Which Department of the State Government is authorized to settle Rate contracts?
ReplyDeleteA:-Stores Purchase Department
B:-Finance Department
C:-Major Heads of Departments
D:-Stationery Department
Correct Answer:- Option-A
:-Under the rules in what forms cost of tender forms can be accepted?
ReplyDeleteA:-Bank cheques
B:-Cash or money order
C:-Postal orders
D:-Bank drafts
Correct Answer:- Option-B
-In response to a tender if two or more well-konwn firms offer an article at the same rate and similar conditions the contract may be
ReplyDeleteA:-Contract may be awarded to the firm which has supplied the article earlier
B:-Fresh tenders may be invited with wide publicity
C:-One of the firms may selected by tossing a coin
D:-Contract may be divided equally among the tenderers
Correct Answer:- Option-D
Annual indent for stores shall be prepared on the basis of the consumption during the
ReplyDeleteA:-Previous one year
B:-Previous two year
C:-Previous three to five year
D:-On the basis of actual consumption during the last six months
Correct Answer:- Option-C
-A complete physical verification of the stock in the Stationery department be made
ReplyDeleteA:-Every half year
B:-Every three year
C:-Every year
D:-Every two year
Correct Answer:- Option-D
Condemned stores which are quite worthless should be
ReplyDeleteA:-Kept for two years
B:-Produced before the Inspection Party/AG
C:-Sold after taking orders from Head of Office
D:-Destroyed
Correct Answer:- Option-D
In the case of purchases of heavy, machinery, imported goods etc which cannot be obtained without wide publicity, tender notices
ReplyDeletemay be published in addition to Government Gazette in
A:-The Times of India, Mumbai Edition
B:-The Statesman, New Delhi Edition
C:-The Indian Trade Journal, Kolkata
D:-The Hindu, Chennai
Correct Answer:- Option-C
-Payment for stores purchased should not be delayed for more than __________ from the date of receipt of stores.
ReplyDeleteA:-90 days
B:-60 days
C:-45 days
D:-30 days
Correct Answer:- Option-D
-In a rate contract which of the following is not mentioned?
ReplyDeleteA:-Quantity
B:-Contract period
C:-Price of article
D:-Quality of item
Correct Answer:- Option-A
A Government servant who has to purchase stores should prepare an indent of stores in Form No.
ReplyDeleteA:-10
B:-12
C:-13
D:-14
Correct Answer:- Option-C
In the case of purchases of heavy machinery, imported goods and other stores which cannot be obtained without wide publicity at all
ReplyDeleteIndia level, tender notice may be published in addition to Government Gazette,
A:-Indian Trade Journal
B:-Indian Trade Times
C:-Indian Trade News
D:-External Trade Journal
Correct Answer:- Option-A
Earnest money deposit may be accepted in
ReplyDeleteA:-Crossed Bank Draft
B:-Cash
C:-Treasury Saving Bank Departments or Promisory note
D:-All of the above
Correct Answer:- Option-D
Running contracts may be settled by
ReplyDeleteA:-Stores Purchase Department
B:-Head of Department and Department Purchase Committee
C:-Finance Department
D:-Head of Office
Correct Answer:- Option-B
-Head of Departments can accept late supplies, after recording the reasons therefore upto ______ after the prescribed date of delivery.
ReplyDeleteA:-1 month
B:-2 months
C:-3 months
D:-15 days
Correct Answer:- Option-B
Every Head of Office should maintain a stock account of furniture and all other stores in Form No.
ReplyDeleteA:-15
B:-17
C:-19
D:-18
Correct Answer:- Option-D
The system under which tender calls are confirmed to selected agencies in the field when purchase of store in urgent cases is
ReplyDeleteresorted is known as
A:-Limited tender
B:-Open tender
C:-Negotiated contract
D:-Single tender
Correct Answer:- Option-A