Railway Accounts Department Examinations

Thursday, July 9, 2020

Index - Browse the articles category wise

NFR - Non Fare Revenue

NFR  - Non Fare Revenue


·         Part of Sundry Earnings


·         NFR consists of


1.       Advertisement on Trains, Railway Bridges & other Assets

2.       Setting up of ATM and other stalls at Railway Stations

3.       Digital Content on Trains and Platforms

4.       NINFRS (see below for detailed article)


·         Concept – 2010-11 year


·         NFR Directorate – 2014 year


·         NFR policy switched from Centralized governance (Railway Board) to Decentralizing (Divisions) in the year 2018


·         Earnings contracts period is reduced from 5 to 10 years to 3 to 5 years


·         NFR Target for 10 years (from 2010-11) is Rs.15000 Crores (Rs. 1500 Crores per year)


·         But 2018-19 year NFR is Rs. 33 Crores (against target of Rs. 1200 Crores)


·         Share of Sundry Earnings



Indian Railways

World wide

Sundry Earnings share

8 %

15 to 20 %



Simplification of Earnings Contracts (except Parcels & Catering)

Tender Amount

Tender Committee

Up to Rs. 50 Lakhs

No T C. Direct Acceptance by


(Independent charge) – subject to conditions

Rs. 50 Lakhs to Rs. 2 Crores

2 Member TC ( Comml & Finance)

Rs. 2 Crores and above

3 Member TC (Comml, Finance & User dept)



Contract Amount

TAA – Tender Acceptance Authority

Up to Rs. 5 Crores


Rs. 5 to Rs. 10 Crores


Rs. 10 Crores to Rs.100 Crores


Rs. 100 Crores and above



Extension of Contract


6 Months (2 spells of 3 months each)


Above 6 Months (Concurrence required)



Direct Acceptance – Earnings Contracts

ü    Constituting the Tender Committee is not required for awarding of the Earning Contracts up to Rs. 50 Lakhs by SG or JAG or Sr.Scale (Independent charge)


ü  Earning contracts are finalized expeditiously without prolonged Tender Committee Proceedings thereby avoiding loss of Revenue to Railways.


Requisites of Direct Acceptance of Tenders


ü  By SG or JAG or Sr.Scale Officers(Independent charge)

ü  Up to value Rs. 50 Lakhs

ü  Tender Committee not required

ü  Tenders through IREPS only

ü  Tendering through E-Tender i.e., IREPS and Open Tender mode only

ü  Minimum Notice Period – 21 days

ü  H 1 cannot be bypassed

ü  Negotiations if any, with H 1 only

ü  Reasonable Speaking Order by TAA – Tender Accepting Authority (about Tender evaluation & Acceptance)

ü  LOA  - Letter Of Award/Acceptance should be vetted by Finance (Object is to comply the above requisites or not)


NINFRIS  - New, Innovative Non Fare Revenue Ideas Scheme

·         New scheme - to increase Non Fare Revenue


·         Announced by Ministry of Railways in 2018. 



·         Object:  Promote new ideas and concepts for enhancement of NFR (Non Fare Revenue) and improve passenger convenience on IR


·         To classify an idea/concept as innovative - a similar proposal should not have been implemented on the concerned Division before. 


·         Replication - Divisions are encouraged to report success of such ideas and give wide publicity for possible replication across Indian Railways. 

Salient features:

ü  At Divisional level

ü  DRM – Divisional Railway manager -Full powers.

ü  Nodal Officer – Branch officer of Commercial Dept (Sr.DCM / DCM)

ü  Committee of Branch Officers of Commercial Dept, Finance Dept and Dept holding the assets to be used scrutinizes the proposals received and recommended to DRM for approval.

ü  Terms & conditions of the Agreement are accepted by the such committee with the approval of DRM

ü   Savings in expenditure if any, is added notionally as “deemed earnings” for the purpose of evaluation of project.

ü  Token non Refundable application fees Rs. 1000 – should be accompanied to each proposal.  Object of levying such fees is to avoid non serious ideas/concepts.

ü  Based on the importance  of the proposal, DRMs are authorize to decide the EMD – Earnest Money Deposit of not less than Rupees 10,000 /-

ü  Projects may be executed directly by the Divisions using their own manpower or through any Railway PSU or outside agencies such as NGO – Non Governmental Organisation, SHG – Self Help Group, Cooperative society etc.

ü  Period – One year or part there of.   Can be extended beyond one year with the approval of DRM. If Extended, Licence fees for extended period may be decided depending on the realization of the earnings of the Project.


·         Should not be political or religious in nature.


·         No permanent structure should be constructed


·         Not violating the norms of aesthetics, environmental concerns, decongestion, safety and security, free movement of passengers, sanitation standards, temporary structures, fire, safety etc as prescribed under Railway rules.



Wednesday, July 8, 2020

Personal Pay

Personal Pay
By Shri Nagaraja Rao, Dy.CPO (Retd)

§   Authority:  FR -9 and 1305 R II

§  Means Additional Pay granted to a Railway Servant

§  Two possibilities – Granting personal Pay

1. He should have suffered loss in pay due to downward revision of pay in the permanent post. The downward revision of pay should not be as a result of disciplinary action against him.
2. His service should have been continuously satisfactory, he should show extraordinary talent in his work, though he is fit for promotion he is not going to get it due to non availability of vacancy or he is very junior in seniority to get promotion and he is drawing same pay continuously for at least five years.
§  Medically decategorised employees and surplus staff come under item No. 1 above. As per extant instructions, medically decategorised employee should be given alternative post suiting to the medical category in which he is found medically fit so that he should not suffer loss in grade and pay.

§  However, sometimes there may not be vacancy in suitable post to consider him. In such cases, he will be posted in lower grade post. Due to this his pay also get reduced. To avoid this situation, his pay will be protected by granting personal pay which is equal to the loss he suffered.

§   The same procedure is followed even in the case of staff rendered surplus due to surrender of posts.
Example of Personal Pay
1.       Hindi personal pay: ( Abolished wef 29/10/1984. In its place payment of onetime payment of lumpsum amount is introduced)

FAR - Fixed Asset Register

FAR  - Fixed Asset Register

·         Fixed Assets occupies significant portion of Total Assets (Fixed Assets + Current Assets) in Indian Railways.

·         Compiling FAR is the important stage in the implementation of Accrual Accounting in Indian Railways.

·         All the Fixed Assets that are in existence as at the end of the year i.e., before adopting the Accrual Accounting in IR shall have brought to the FAR.  So that closing balances of previous year Asset Heads forms Opening Balances of current year Balance Sheet.

·         Definition of Fixed Assets   - IGFRS 2 (Indian Govt Financial Reporting Standards) issued by GASAB – Govt Accounting Standards Advisory Board  is

1.       The Property Plant & Equipment
2.       It should be tangible
3.       Held by an entity for use in Production / Supply of Goods & Services / for Rental to others / Administrative purpose (Office Building like Zonal Hqrs, Divisional Hqrs etc)
4.       Expected to be used during more than one reporting / financial year.

·         Fiduciary control  - Leased Assets in IR i.e., Rolling Stock from IRFC are also brought under FAR (though IRFC is the legal owner)

·         Not covered under FAR  - Insignificant items like Library Books, Computer peripherals, small items of equipments. However major spare parts and standbys equipment used more than one year are comes under FAR.

·         FAR  - The following information includes about Fixed Assets

1.       Description (in detail)
2.       Stockholder code (i.e., SSE, Sr.DEN, TXR etc)
3.       Block Section  (Between two Railway stations to trace the location in open line)
4.       Cost of Acquisition / Construction ( Acquisition Cost = Purchase Price + Import duties + Taxes + Incidental expenses – Trade discounts)  -“Where an Asset does not have a determinable cost, a nominal value of Re One may be taken for financial statement purpose” .  But this is the last alternative.
5.       Improvements should add to the cost  (But not POH or repair charges)
6.       Date of Acquisition (for Civil works – Completion of Construction.  For others – Purchase date)
7.       Mode of Acquisition  ( Construction, Purchase, Transfer, Gift etc)
8.       Reference of Title Documents
9.       Codal Life  (as per codes)  - useful for calculation of Depreciation
10.   Allocation Code – (Source of Allocation i.e., CAP., DRF, DF etc and Allocation i.e., Plan Head, Sub Head etc)
11.   Depreciation Rate   (Cost minus salvage value /codal life)
12.   Accumulated Depreciation  - From the date of acquisition to preparation of FAR
13.   WDV – Written Down Value / Net Book Value  ( Total cost minus Accumulated depreciation)
14.   Remarks  - Any other significant remarks (example encroaching of land )

FAR – Different formats for different category of Assets
FA 1 – Land

FA 2 – Buildings

FA 3 – Bridges, Tunnels, ROB

FA 4 – Roads and streets

FA 5 – Track /P Way
(Source: TMS – Track Management System
 Separately for Rails, Sleepers & Ballast)

FA 6 – Furniture
 (source: T & P register)

FA 7 – Office equipments
(Source: T & P Register)

FA 8 – Commercial Vehicles

FA 9 – Plant & Machinery and Equipment (Except for S&T Dept)

FA 10 – Computers & Peripherals
(Source: T&P register)

FA 11 – Medical equipments

FA 12 – Rolling Stock
(compiled by ICAI-ARF  central team duly taking the records from Zonal Rlys)

FA 13- CWIP – Capital Works In Progress
(at present no concept in IR)

FA 14 – Plant, Machinery & Equipment of Signal Dept

FA 15 – Plant, Machinery & Equipment of Telecom Dept

FA 16 – Electrical equipment & fittings of Commercial Dept

FA 17 – Intangible Assets (Copy rights, patents, Goodwill, Software etc)

FA 18 – OHE (Over Head Equipment)

·         T & P Register for source of FA 6 (Furniture), FA 7 (Office equipments) & FA 10 (Computer peripherals)
·         FA 13 – CWIP - Capital Works In Progress is new concept for Indian Railways
·         FA 12 – Rolling Stock - ICAI ARF (Institute of Chartered Accountants of India – Accounting Research Foundation) Central team collects the details from Zonal Hqrs records – Most of the Rolling stock is leased from IRFC