Book Examination Clause

 

BOOK EXAMINATION CLAUSE 

( IRS conditions of Contract 3300)

  Meaning: The government/Purchaser to call for and verify and examine the books of the contractor/Supplier is called Book Examination Clause.

  Books include Account books, vouchers, receipts, memorandum, paper or writing or any copy of or extract from any such document.

  Object: Verifying or ascertaining the cost of execution of the contract.

  When : before or after the prices have been finally fixed.

  Contractor's duty: Afford facilities to the Government Officer concerned to visit the Contractors works for the purpose of examining the processes of manufacture and estimating or ascertaining the cost of production of the articles. If any portion of the work be entrusted by a sub-contractor or any of its subsidiary, the authorized Government Officer shall have power to examine all the relevant books of such sub- books of such sub-contractor or any subsidiary shall be open to his inspection as mentioned in clause.

  Period: The Contractor or its agency is bound to allow examination of its books within a period of 60 days from the date the notice is received by the Contractor, or its agencies.

  If Contractor fail to produce the Books:  The purchaser can reduce the Contract price according to his best judgment.  The decision of the Purchaser in regard contract price is final and binding on the Contractor and his agencies.

  Result :  If on such examination, it is established that the contracted price is in excess of the actual cost plus reasonable margin of profit, the Purchaser shall have the right to reduce the price and determine the amount to a reasonable level.

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Railway Board - Distribution of Work among the Members

 Railway Board - Distribution of Work among the Members

MCQ Practice - Financial Rules 2023 Question paper of APO 70%

Click for MCQ Practice Financial Rules APO 70% Question Paper 2023

Codes - Indian Railways

Codes - Indian Railways

Link for Website to access Railway Codes & Manuals

SN	Code	Index Letter	Dept	Year of First edition	Year of Latest edition	No of volumes	Remarks
1	Accounts Department	A	Accounts	1940	1983	2	Part I - General Accounts. Chapters 1 to 19 Part II - Traffic Accounts. Chapters 20 to 34
2	Engineering Code	E	All Depts			1	19 chapters
3	Finance Code	F	All Depts		1981	2	Part 1 - 11 Chapters Part 2 -  Classification of expenditure & receipts
4	Administration & Finance - An introduction	G	All Depts	1976	1991	1	12 chapters
5	Rolling Stock	M	Mechanical	1940	2016	1	11 chapters. Previous name is Mechanical Dept code (workshops)
6	Establishment Code	R	Personnel	1940	1985	2	Part I - 1 to 12 chapters Part II - 13 to 20 chapters
7	Stores Code	S	Stores	1938	1990	2	Part I - 1 to 11 chapters Part II - 12 to 33
8	Traffic Dept (Commercial)	T	Commercial	1939		1	19 chapters

Notes:

• The erstwhile Indian Railway General Code (provisional edition published in the year 1938) was re-written in two separate texts under the titles " The Indian Railway Administration and Finance—An Introduction " and " Indian Railway Finance Code ".

• Code Revision cell was constituted in 1973 year

• Paragraph Numbers.-For convenience of indexing and of reference, the paragraphs have been numbered according to a 3/4 figure "Code".  First 1 or 2 digits indicate chapter number.  Last 2 digits indicate Para Number.

Examples:

1) 1302 - A I- paragraph 2 of Chapter XIII of Accounts Code Volume I

2) 116 - F I indicates Paragraph 16 of chapter I of Finance Code volume I

• Forms indicate as follows.  The index letter of the code in question being prefixed to the number of the paragraph in which the form is Illustrated Code Index letter is prefixed (unlike suffixed in case of Paragraphs)

• Example: S-1313  .  That is the form that is described and illustrated in Paragraph 13 of Chapter XIII of Stores Code.  (combined Requisition and issue Note for drawing materials from stores Depots)

•  Simply, The Index letter of the Code is prefixed for Form Number and is suffixed for Paragraph Number.

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MBO - Management By Objectives - MA - Management Accounting

 

MBO - Management By Objectives

• What is MBO ? MBO - Management by Objectives is a strategic management approach that aims to improve organizational performance by aligning individual employee objectives with the overall goals of the organization. 

 

• Introduced by Peter Drucker in his 1954 book, "The Practice of Management,".

Key Steps:

1. Define Organizational Goals: Management identifies the organization's overarching objectives, providing a clear direction for all departments and employees.

2. Set Individual Objectives: Managers and employees work together to establish specific, measurable goals for individuals that align with the organization's aims.

3. Continuous Monitoring: Regular tracking of progress ensures that both organizational and individual objectives are on course.

4. Performance Evaluation: Assessments are conducted to compare actual performance against the set objectives.

5. Feedback and Rewards: Constructive feedback is provided, and achievements are recognized, often through rewards or incentives.

Benefits of MBO:

• Enhanced Communication: Promotes open dialogue between managers and employees, ensuring clarity in expectations.

• Employee Motivation: Involving employees in goal-setting increases their commitment and motivation to achieve targets.

• Alignment of Objectives: Ensures that individual goals are directly linked to the organization's mission, fostering a unified direction.

Limitations of MBO:

• Overemphasis on Goals: Focusing too much on specific objectives may lead to neglect of other important aspects of performance.

• Rigidity: The structured nature of MBO can sometimes hinder flexibility and adaptability in dynamic environments.

• Short-Term Focus: There's a risk of prioritizing immediate objectives over long-term sustainability and innovation.

In the context of management accounting, MBO serves as a valuable tool by providing clear performance metrics and facilitating the alignment of individual efforts with financial and strategic goals. 

This alignment aids in budgeting, forecasting, and performance evaluation, ensuring that all organizational activities contribute effectively to the desired financial outcomes.

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