Railway Accounts Department Examinations

Showing posts with label EMD. Show all posts
Showing posts with label EMD. Show all posts

Monday, March 25, 2019

MCQ - Multiple Choice Questions - EMD


MCQ - Multiple Choice Questions

·        On trial basis, attempt the following questions on EMD. 
·        Don't be elated/excited/joyous on the decision of Railway Board to conduct LDCE -Prelims in 100 % MCQ - Multiple Choice Questions for all Depts except Accounts.
·         For Accounts Dept, separate orders will be issued.
·        Unless, you are thorough with the subject completely, you will not qualify in Prelims.  Because, qualifying marks are 75 out of 100 and negative marks are 1/3rd of the Correct Marks.
·       Descriptive to Objective is nothing but "Out of the frying pan into the fire"  -  (situation of moving or getting from a bad or difficult situation to a worse one, often as the result of trying escape from the bad or difficult one)  - If the candidate is not thorough with the subject completely.

EMD - Earnest Money Deposit
Grade
S.N.
MULTIPLE CHOICE QUESTIONS
ANSWER
SIMPLE
1
EMD expands as ________ Money Deposit.
A. Early     B. Entire     C.  Earnest    D.  Entry

2
The EMD shall  be rounded to the nearest ________
A. Rs.100    B. Rs.10     C.  Rs. 1000   D.  Rs.5

3
EMD - Earnest Money Deposit is ____ percentage of the estimated cost of work (for works costing up to Rs.1 Crore)
A. 5     B. 2    C. 3   D. 10

4
Maximum EMD is  ________ only.
A. Rs. 2 Crores    B. Rs. 50 Lakhs    C. Rs.25 lakhs   D. Rs. 1 Crore

MEDIUM
5
The amount of EMD is ________, if the value of work is Rs. 2.5 Crores
A. Rs.5 Lakhs    B. Rs. 3.75 Lakhs   C.  Rs. 2.75 Lakhs   D.  Rs. 12.5 Lakhs

6
The amount of EMD is ________, if the value of work is Rs. 300 Crores
A. Rs. 1 Crore    B. Rs. Rs.151.50 Lakhs   C.  Rs. Rs. 6 Crores   D.  Rs. Rs. 1.5 Crore

7
Which one among the following is incorrect ?
A.  EMD is 2% of the value of work, if the work value is up to Rs. 1 Crore
B. If value of work is beyond Rs. 1 Crore, the EMD is Rs.2 Lakh plus 0.5 % of  the excess of the estimated cost of work beyond Rs. 1 Crore.
C. EMD of successful tenderer is retained as part of SD - Security Deposit
D. EMD is applicable to Open Tenders only

DIFFICULT
8
Firms recognized by ____________ as "STARTUPS" shall be exempted from the payment of EMD.
A. Ministry of Commerce & Industry    B. Dept for promotion of Industry and Internal Trade   C. Railway Board    D. Dept of Industrial Policy & Promotion

9
Which one among these is not a valid reason for forfeit of EMD by the Railways.
A. Resile/abandon the work by successful tenderer.
B. Fail to submit the PG - Performance Guarantee within validity of time.
C. Fail to submit the SD - Security Deposit within validity of time.
D. Modify the terms & conditions thereof in a manner not acceptable to the Railways.

10
The Railway shall return the EMD so retained to the successful tenderer, if he/she submits/pays _______ towards full SD - Security Deposit.
i) Cash   ii) TDR -Term Deposit Receipt   iii) Demand Draft    iv) Bank Guarantee Bond

A. ii) & iv) only     B.  i) & iv) only    C. iii) only     D. All the above


for Article on EMD - Click here

EMD - Earnest Money Deposit -Answers
Grade
S.N.
MULTIPLE CHOICE QUESTIONS
ANSWER
SIMPLE
1
EMD expands as ________ Money Deposit.
A. Early     B. Entire     C.  Earnest    D.  Entry
C
2
The EMD shall  be rounded to the nearest ________
A. Rs.100    B. Rs.10     C.  Rs. 1000   D.  Rs.5
A
3
EMD - Earnest Money Deposit is ____ percentage of the estimated cost of work (for works costing up to Rs.1 Crore)
A. 5     B. 2    C. 3   D. 10
B
4
Maximum EMD is  ________ only.
A. Rs. 2 Crores    B. Rs. 50 Lakhs    C. Rs.25 lakhs   D. Rs. 1 Crore
D
MEDIUM
5
The amount of EMD is ________, if the value of work is Rs. 2.5 Crores
A. Rs.5 Lakhs    B. Rs. 3.75 Lakhs   C.  Rs. 2.75 Lakhs   D.  Rs. 12.5 Lakhs
C
6
The amount of EMD is ________, if the value of work is Rs. 300 Crores
A. Rs. 1 Crore    B. Rs. Rs.151.50 Lakhs   C.  Rs. Rs. 6 Crores   D.  Rs. Rs. 1.5 Crore
A
7
Which one among the following is incorrect ?
A.  EMD is 2% of the value of work, if the work value is up to Rs. 1 Crore
B. If value of work is beyond Rs. 1 Crore, the EMD is Rs.2 Lakh plus 0.5 % of  the excess of the estimated cost of work beyond Rs. 1 Crore.
C. EMD of successful tenderer is retained as part of SD - Security Deposit
D. EMD is applicable to Open Tenders only
D
DIFFICULT
8
Firms recognized by ____________ as "STARTUPS" shall be exempted from the payment of EMD.
A. Ministry of Commerce & Industry    B. Dept for promotion of Industry and Internal Trade   C. Railway Board    D. Dept of Industrial Policy & Promotion
D
9
Which one among these is not a valid reason for forfeit of EMD by the Railways.
A. Resile/abandon the work by successful tenderer.
B. Fails to submit the PG - Performance Guarantee within validity of time.
C. Fails to submit the SD - Security Deposit within validity of time.
D. Modify the terms & conditions thereof in a manner not acceptable to the Railways.
C
10
The Railway shall return the EMD so retained to the successful tenderer, if he/she submits/pays _______ towards full SD - Security Deposit.
i) Cash   ii) TDR -Term Deposit Receipt   iii) Demand Draft    iv) Bank Guarantee Bond

A. ii) & iv) only     B.  i) & iv) only    C. iii) only     D. All the above
A

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Monday, March 18, 2019

EMD – Earnest Money Deposit (as per GCC for Works – Nov, 2018)


EMD – Earnest Money Deposit
(as per GCC for Works – Nov, 2018)

ü  Earnest means – Showing sincere interest/serious in participating the Tender process, if awarded executing the Work for Organizations like Indian Railways.

ü  EMD – Earnest Money Deposit – means an earnest payment as specific form of Deposit to demonstrate that the applicant is serious/sincere to participate the Tender work and complete the work for orgnisations like Indian Railways, if awarded.

ü  EMD Rates are as follows.

Value of the Work
EMD Amount ( Rounded to a nearest Rs.100)
Up to Rs.1 Crore
2 % of value of the work
Beyond Rs. 1 Crore
Rs. 2 lakhs + 0.5 % of the excess of the estimated
cost of work beyond Rs.1 Crore

ü  Maximum EMD is Rs. One Crore only.

Examples for calculation of EMD under different circumstances: -
=======================================================
1.       Value of Work  - Rs. 25,60,520

2 % of Rs.25,60,520  - Rs. 51,210

Answer is Rs. 51,200 /- (Rounded off to a nearest Rs.100)
                 =======================================================
2.       Value of Work  - Rs. 4,00,00,000 ( Rs. Four Crores)

First one Crore
Rs.2,00,000 (Rs. Two Lakhs)
One Crore to Four Crore ( 3 Crores)
Rs.3 Crores x 0.5 % = Rs. 1,50,000 (Rs.1.5 Lakhs)
For Value of Rs.4 Crores
Rs.2 Lakhs plus Rs.1.5 Lakhs = Rs.3.5 Lakhs

                 =======================================================
3.       Value of Work  - Rs. Two Hundred Crores

First one Crore
Rs.2,00,000 (Rs. Two Lakhs)
One Crore to Two Hundred Crore ( 199 Crores)
Rs.199 Crores x 0.5 % = Rs.99,50,000
For Value of Rs.200 Crores
Rs.2,00,000 plus Rs.99,50,000 = Rs.1,01,50,000.  However maximum EMD is Rs.1 Crore.  So EMD is Rs.1,00,00,000/- ( Not Rs.1,01,50,000)

                 =======================================================
ü  EMD is applicable to all modes of Tenders such as Open, Limited, Single etc.

ü  Exemption for Submission of EMD – Firms recognized as “STARTUPS” by DIPP (Dept of Industrial Policy & Promotion.

ü  EMD of Successful Tenderer – Retained as part of Security Deposit.  But Railway shall return the EMD, if a Successful Tenderer submit “Term Deposit Receipt (TDR) / Bank Guarantee Bond towards the Full Security Deposit.

ü  EMD shall be deposited in Cash (through E-Payment Gateway) or as mentioned in Tender documents.

ü  EMD of unsuccessful Tenderers – Returned to them. But Railway is not liable to pay the depreciated value, if any or any interest on EMD.

ü  Forfeit of EMD:

1.       If the successful tenderer unable to submit the PG – Performance Guarantee within validity of time, or
2.       If the successful Tenderer resile/abandon from his offer, Or
3.       Modify the terms and conditions there of in a manner not acceptable to the Railways.
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