Railway Accounts Department Examinations

Friday, July 31, 2020

Appendix 3 Exam likely to be conducted on or before December, 2020

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Appendix 3 exam, 2019 & 2020 Notification likely to be released.

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Examination likely to be conducted on or before December, 2020

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Wednesday, July 29, 2020

P P P – Public Private Partnership

Public-Private Partnership (Definition,Example)| Top 7 Type of PPP

P P P – Public Private Partnership


Related articles on PPP



DedicatedFreight Corridor





Govt of India Website on PPP


Introduction :


·         An innovative way of delivering modern, high quality public services and promoting the country’s competitiveness. 

·         Currently, PPP occupies the page-3 status in the news.


What is:


·         A long term project between the Government and a private sector company for delivering an infrastructure service on payment of user charges.

·         Partnership / collaboration between a Government and Private firm

·         Used to finance, build & operate public projects


Why require:  


·         Due to resource crunch, Governments are not able to undertake capital intensive Public projects such as Roads, Bridges, Metro transport, Airports, Sea ports, Power services etc.

·         However Private players might be interested in funding such Public projects subject to receiving the operating profits during the life time of the Project.

·         Significant deficit in the availability of physical infrastructure that impacts economic development.

·         Development of infrastructure requires large investments that cannot be undertaken out of public financing alone, and that in order to attract private capital as well as the techno-managerial efficiencies associated with it, the Government is committed to promoting Public Private Partnerships (PPPs) in infrastructure development.



Salient features:


·         Normally the contract periods of 25 years or longer.

·         Role of Private player:  Designing, Build, Finance, Operating and Transfer –DBFOT

·         Role of Public player: Defining and monitoring the Project as per compliance.

·         Risks are distributed between the Public and Private partners according to the ability of each to assess  

·         The infrastructure projects may not always be financially viable because of long gestation periods and limited financial returns.  Hence, the Govt provides incentives (in India, VGF – Viability Gap Fund ) to the Private player like subsidies, land, tax benefits etc.

·         Typically, a private sector consortium forms a special company called a special purpose vehicle (SPV) to build and maintain the asset. The consortium is usually made up of a building contractor, a maintenance company and a bank lender. It is the SPV that signs the contract with the government and with subcontractors to build the facility and then maintain it.

·         Risk sharing – Private sectors managing commercial risks, construction risks, financial risks.  Whereas Govt managing Political risk and land acquisition.

·         Model Concession Agreement (MCA) - The detailed modalities of the contract between the private player and the Government. This document plays a pivotal role in the implementation of the project. It clearly delineates the risks to be shared by the private player and the government and spells out the formula of sharing of the revenue among other important details


Types of PPP



Build, Own & Operate


Built, Operate & Transfer


Build, Own, Operate & Transfer


Build, Own, Operate, Share & Transfer


Design, Build, Finance & Maintain


Design, Build, Finance, Maintain & Operate


Design, Built, Finance, Operate & Transfer

O & M

Operation & Maintenance


Operations, Management & Development Agreement





·         PPP work well when Private sector technology and innovation combine with Government player’s subsidies, tax benefits etc

·         Provide better public services

·         Creating good infrastructure facilities


Examples in India:


·         PPPAC – Public Private Partnership Appraisal Committee

·         Total PPP projects cost in India  - Rs. 25 Lakhs Crores  (Nearly 2000 Projects)

·         Hyderabad Metro Rail project – Rs. 12000 Crores

·         Teesta Power Project – Rs. 6000 Crores – BOO

·          Dhamra Port, Odisha – Rs. 10000 Crores – BOOST

·         Delhi Internation Airport – Rs. 12000 Crores - OMDA

·          Delhi – Meerut Expressway – Rs. 10000 Crores – DBFOT

·         Container terminal at JNPT – Jawaharlal Nehru Port Trust, Maharashtra– Rs. 6700 Crores -O & M


Examples of PPP in Indian Railways:


·         In India, Noida Toll Bridge was the first successful example of a Public Private Partnership in the transportation sector.

·         Redevelopment of New Delhi Railway Station – Rs. 8,500 Crores

·         Redevelopment Gwalior, Nagpur, Amritsar & Sabarmati Railway Stations  -  Rs. 1300 Crores

·         Catering, Food plazas, Budget hotels

·         SPV – PRCL (Pipavav Railway Corporation Limited)  - Surendranagar-Pipavav new line.

·         K – RIDE - A Joint Venture named K-RIDE (Rail Infrastructure Development (Karnataka) Limited

·         Wagon Investment Scheme  - WIS

·         Parcel Services

·         Operation of Container trains

·         Private sidings

·         ICDs – Inland Container Depots

·         Railside Warehouses

·         Dedicated Freight Corridor


Tuesday, July 28, 2020

Revenue vs Earnings

In Indian Railways, we use normally the word Earnings instead of Revenue.  Now we will check the difference between the two and is it correct to use the word Revenue in place of Earnings or not. 

Revenue minus Expenditure is equal to Earnings.

The difference between revenue and earnings is that while revenue tracks the total amount of money made in sales, earnings reflect the portion of the revenue the company keeps in profit after every expense is paid.

So Using the word Earnings so far in lieu of Revenue is incorrect.  Because Earnings means profits/surplus after deducting the expenditure from Revenue.  

So, here after

Abstract X -  Coaching Revenue

Abstract Y  -  Goods Revenue

Abstract Z - Sundry Revenue

It is high time to modify the Revised Accounting Classification in Finance Code Volume Two accordingly.

Monday, July 27, 2020

Functions of Management Accountant

Functions of Management Accountant

Easy to remember   PRE TEA

Planning & Control
Tax administration
External effects
Asset Protection

Differences between Financial Accounting and Management Accounting

Financial Accounting vs Management Accounting | Top 9 Differences

Differences between
Financial Accounting
Management Accounting
End user
Mostly outsiders (Govt,
Tax bodies, Investors etc)
In house Management
Legal obligation
Non statutory
Company as a whole
Segment wise
Type of Information
Monetary value
Monetary, Quantity & Quality
Not specified or customised
Internal & External
GAAP (Generally Accepted
Accounting Principles)
No specific ones
Not much
Mostly analytical
Ends & Means
Ends in itself
Means to end
Objective / Measurable
Subjective / Interpretations / Personal
At the end of Financial Year
No such period.  But information may
 be required at any time
Subject to Independent Audit
Need not be audited