Engineering Plant Reserve

Engineering Plant Reserve

ü  Created for items of Plant which rendered surplus on completion of special works/schemes.

ü  On completion of special works or construction, all useful plants for which there is no demand on the OPEN LINE should be returned to this Reserve by Engineering dept to the nearest Stores depot accompanied by advice note.

ü  So that the items of plant in that reserve will be required for future special works.

ü  Created on each Railway with the previous sanction of the Railway Board.

ü  Maximum financial limit of such reserve is fixed by the Railway Board only.

ü  Engineering Dept. responsible for deciding what materials are to be maintained in that reserve.  Also responsible for arranging inspection of items plant on return from any work, such plant should be attended to and kept in readiness, for issue again, if need be.

ü  Stores Dept. responsible for  maintain the records i.e., receipts, issues and balances of the items in that reserve.

ü  Separate Priced Ledgers are maintained for such Plan represented by the No. painted on the items.

ü  Hired such plants to other Govt. Depts, Private parties:

ü  Resorted to that option, when it is used in the interest of public service.

ü  Hire charges and 12.5 % supervision of all handling , packing, loading and unloading etc also be levied on the parties.

ü  COS is responsible for recovery of such charges.

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Risk Purchase

Risk Purchase

·         is fresh purchase made by the Railways ordered at the risk and cost of the defaulting firm , by cancelling the original purchase order under the conditions of the Contract.

·         It happens, when a firm has failed to make supply against P.O/agreement wholly or in part within the Delivery period including extension granted if any.,   or

·         When supply made has been rejected and the firm has failed to replace the same in spite of additional time having been given.

·         Under the above circumstances, the contractor/supplier shall be liable for any loss which the railway may sustain provided:

·         Such a risk purchase is covered by the Agreement.,

·         Risk purchase is made within 6 months from the date of failure or cancellation of the contract owing to repudiation of the contract before the expiry of delivery period incl: extension period if any.

·         Important points to be observed, while making risk purchase are:

·         Risk purchase should be ordered in the same manner as for the original purchase. That is description, inspection method,  system of tender should be similar to the original purchase.

·         No offer with any unusual condition at variance with the original purchase should be accepted.

·         The defaulting firm should also be invited to tender against the Risk tender even though not obligatory.

·         If acceptable, the defaulting firm’s offer, ensure that the same may be accepted only after paying the security deposit, irrespective of the fact, that the said firm is exempted from depositing security money otherwise.

·         The original contractor becomes liable for to the difference between the higher price incurred and the contracted price.

·         For this purpose, MAR account to be operated for watching the realization of the above said difference amount.

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SMS - Stores Monthly Summary

S M S - Stores Monthly Summary

·         SMS is the summary of all store transactions about Stores issued from Stores Depots to the Consumers /consignees (various executives) during the month.

·         Contains particulars like Depot, Ward, Voucher No., Date of issue, P L (Price List) No, consignee code, Quantity drawn, Rate and Total value debited.

·         Also gives Allocation code and totals for Department and Division.

OBJECTIVE:   

·         To Bring into account, all the Stores Transactions (issues and receipts) about the Zone ( say S C Rly) for stock items, which are booked to Capital P (20-7100) – Stores Suspense Under Demand No.16.

·         Through SMS JV, the above transactions clubbed into FMIS, so the JV is incorporated in the Account Current wherever required.

·         Once the final processing is complete at EDP/SC, the reports generated and sent to WAO’s Offices are as follows.

1.      Transaction Ledger

2.      Stores Monthly Summary

3.      S A A/c (Stock Adjustment )

4.      SINT  A/c ( Stores in Transit)

5.      Sales A/c

6.      Class Ledger

7.      OB (quarterly)

8.      Multi depot print out ( for COS office use)

9.      Exception Report 1 – below the danger level ( for COS office use)

10.  Exception Report 2 – above danger level ( for COS office use)

11.  Exception Report 3 – Out of stock (for COS office use)

·         After the generation of the above reports, SMS JV is generated.

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Book Examination Clause

BOOK EXAMINATION CLAUSE

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

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

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

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

v  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.

v  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.

v  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.

v  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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Differences between Sales suspense & Traffic Suspense

2016  year Books & Budget (with books)

DIFFERENCES BETWEEN

Sales Suspense	Traffic Suspense
1.    It is a Capital Suspense Head.	1.    It is a Revenue Suspense Head.
2.    It is operated under Capital Expenditure( Plan Head 7100)	2.    It is operated on Revenue Receipts
3.    Shown as Debit balance (as Minus Debit in practical)	3.    It is always having Debit balance
4.    CREDIT -: When the sale proceeds is deposited /received.  DEBIT:  When sale issue note is accounted.	4.    Debit: Accrued earnings. Credit: The realization of the Accrued earnings:
5.    Object: Watching the realization of sale proceeds of Auction sales.	5.    Object: Watching the realization of accrued/outstanding earnings
6. It is not a Link Head	6. It is a LINK head connecting between           Government accounts and Commercial           Accounts