Railway Accounts Department Examinations

Showing posts with label OR. Show all posts
Showing posts with label OR. Show all posts

Tuesday, October 17, 2023

O.R. - Operating Ratio - Practical -2012 year Question paper


Operating Ratio  (O.R) - Practical problem - 20 marks  - Compulsory
2012 year optional Books & Budget (without Books) Question paper
1. Given below are the financial results of Railways for the years 2007-08 and 2008-09.
                                                Figures in Crores of Rs.
Particulars
2007-08
2008-09
Gross Earnings
71645
79837
Traffic Suspense
75
25
Gross Traffic Receipts
71720
79862
Miscellaneous Receipts
1557
1797
Ordinary Working Expenses-OWE
41033
54349
Appropriation to DRF
5450
7000
Appropriation to Pension Fund
7979
10490
Miscellaneous Expenditure
480
645
Net Revenue
18334
9174
Dividend Paid
4903
4718

a) From the above figures, calculate the Operating Ratio for 2007-08 and 2008-09.
b) Comment on performance of the railway in 2008-09 compared to 2007-08, giving possible reasons for improvement /deterioration.  Calculate the amount available for sourcing of capital expenditure in each year and how is it normally allocated.
Ready reckoner for calculation of Operating Ratio
SN
Particulars
formulae
Amount

SN
Particulars
formulae
Amount
Finding
1.
Coaching Earnings (less refunds)


10
OWE - Ordinary Working Expenses



2.
Goods Earnings (less refunds)


11
Appropriation to DRF



3
Traffic Earnings
(1 + 2)

12
Appropriation to Pension Fund



4
Sundry Other Earnings (less refunds)







5
Gross Earnings
(3 + 4)

13
Gross Working Expenses
(10 + 11 + 12)

O.R = 13/5 x 100
6
Suspense


14
Suspense



7
Gross Receipts
(5 + 6)

15
Gross Expenditure
(13 + 14)


8
Miscellaneous Receipts


16
Miscellaneous Expenditure



9
Total Revenue Receipts
(7 + 8)

17
Total Revenue Expenditure
(15 + 16)

Net Revenue
 = 9 - 17

Surplus = Net Revenue minus Dividends paid.  (Shortfall if the figure is negative)

Answer

                                                                  2007-08 year

SN
Particulars
formulae
Amount

SN
Particulars
formulae
Amount

1.
Coaching Earnings (less refunds)


10
OWE - Ordinary Working Expenses

41033

2.
Goods Earnings (less refunds)


11
Appropriation to DRF

5450

3
Traffic Earnings
(1 + 2)

12
Appropriation to Pension Fund

7979

4
Sundry Other Earnings (less refunds)







5
Gross Earnings
(3 + 4)
71645
13
Gross Working Expenses
(10 + 11 + 12)
54462
O.R = 13/5 x 100 = 76.02 %
6
Suspense

       75
14
Suspense

0

7
Gross Receipts
(5 + 6)
71720
15
Gross Expenditure
(13 + 14)
54462

8
Miscellaneous Receipts

   1557
16
Miscellaneous Expenditure

480

9
Total Revenue Receipts
(7 + 8)
73277
17
Total Revenue Expenditure
(15 + 16)
54942
Net Revenue
 = 9 - 17 = 18335

Surplus = Net Revenue minus Dividends paid.  (Shortfall if the figure is negative)
surplus = 18335 - 4903 = 13432

                                                            2008-09 year
SN
Particulars
formulae
Amount

SN
Particulars
formulae
Amount

1.
Coaching Earnings (less refunds)


10
OWE - Ordinary Working Expenses

54349

2.
Goods Earnings (less refunds)


11
Appropriation to DRF

7000

3
Traffic Earnings
(1 + 2)

12
Appropriation to Pension Fund

10490

4
Sundry Other Earnings (less refunds)







5
Gross Earnings
(3 + 4)
79837
13
Gross Working Expenses
(10 + 11 + 12)
71839
O.R = 13/5 x 100 =89.98 %
6
Suspense

       25
14
Suspense

0

7
Gross Receipts
(5 + 6)
79862
15
Gross Expenditure
(13 + 14)
71839

8
Miscellaneous Receipts

   1797
16
Miscellaneous Expenditure

645

9
Total Revenue Receipts
(7 + 8)
81659
17
Total Revenue Expenditure
(15 + 16)
72484
Net Revenue
 = 9 - 17 = 9175

Surplus = Net Revenue minus Dividends paid.  (Shortfall if the figure is negative)
surplus = 9175 - 4718 = 4457

Answers:
1 ) Operating Ratio for year 2007-08 is 76.02 % and for year 2008-09 is 89.98 %
2) i) Possible reasons for deterioration:  11% increase in Earnings is not sufficient to offset the increase of 30 % (average) in OWE, Appropriation to DRF & Pension Fund.  The reason for big jump on expenditure side is attributed to implementation of VI Pay commission w.e.f. 01.01.2006, but implemented in the financial year 2008-09 with retrospective effect.
  ii) Amount available for sourcing of capital expenditure.  -  There is no clear cut rule for distribution of surplus among different funds.  After meeting the requirements of Development Fund, the left over will be allocated to Capital Fund for incurring of capital expenditure. ( to avoid Dividend liability)

 year
Surplus
Development Fund
Capital Fund
Remarks
2007-08
13432
1500
11932
Notional distribution

2008-09
4457
1391
3066
Actual distribution ( as per website of Railways)







Monday, October 2, 2023

Operating Ratio Numerical Problem - Appendix3 Exam - One time Special 2022 year

 

Ready reckoner for calculation of Operating Ratio


SN

Particulars

formulae

Amount


SN

Particulars

formulae

Amount


1.

Coaching Earnings (less refunds)

(60000+5000)

65000

1.

OWE - Ordinary Working Expenses


150000


2.

Goods Earnings (less refunds)


125000

2.

Appropriation to DRF


5000


3

Sundry Other Earnings (less refunds)


10000

3

Appropriation to Pension Fund


40000


4

Gross Earnings

(1+2+3)

200000

4

Gross Working Expenses

(1+2+3)

195000

O.R = GWE/GE x 100 = 195000/200000 x 100 = 97.5 %

5

Suspense

(Traffic & DR)


(-) 300

5

Suspense (DP)


(-) 400


6

Gross Receipts

(4+5))

199700

6

Gross Expenditure

(4+5))

194600


7

Miscellaneous Receipts


500

7

Miscellaneous Expenditure


2000


8

Total Revenue Receipts

(6+7))

200200

8

Total Revenue Expenditure

(6+7)

196600

Net Revenue/Net Receipts/Surplus

 = TRR – TRE = 3600

 


  1. Traffic Suspense -  (-) 300

  2. Total Revenue Receipts - 200200

  3. Gross Expenditure  - 194600

  4. Operating Ratio  - 97.5 %

  5. Surplus - 3600