Railway Accounts Department Examinations

Showing posts with label Traffic. Show all posts
Showing posts with label Traffic. Show all posts

Thursday, January 30, 2020

NINFRIS - New, Innovative Non Fare Revenue Ideas Scheme


NINFRIS  - New, Innovative Non Fare Revenue Ideas Scheme


·         New scheme - to increase Non Fare Revenue

·         Announced by Ministry of Railways in 2018.  Click here for Railway Board letter on NINFRIS

·         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.

Safeguards/Precautions

·         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.

Success Stories - NINFRIS

1. Paid Gaming fun zone opens at Visakhapatnam Railway Station for passenger convenience. Rs. 3.6 Lakhs per Annum. 
     
      2. Health check kiosk was established at Kacheguda on payment basis. 

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Thursday, October 31, 2019

Question papers of Traffic Accounts and Station Accounts - Appendix3 examination IREM - last 10 years ( 2004 to 2018)









Thank you Shri Karunakar E, Sr. TIA/SC Railway for providing the above question papers. It is better, if administration (Railway Board) considering the proposal to upload all the question papers of Appendix 3 examination in the Railway Website to avoid sending individually through RTI , effecting lot of saving in manpower.    





Monday, October 14, 2019

TIAs Manual






Note: Great job done by Shri Naga Bhushanam, Sr. TIA/Vijayawada, SCR by enabling the  hyperlinks at Index page of TIAs Manual for easy accessing of the information at fingertips. Thank you.

Saturday, January 26, 2019

PPT on Earnings - By Shri Sundar Ram, Retd Member/Technical/RCT/SC

Earnings write up




Earnings – Write up

By Shri Sundar Ram, Retd Member(Technical)/RCT/SC

Importance of Earnings:

Why are earnings important? Earnings are important to generate “Surplus” (Profit).

So why is “Surplus” important? It is the surplus which allows us to spend money onexpansion of lines, purchase of rolling stock, and to meet all kinds of Capital Expenditure, especially because of the paucity of budgetary support. “Surplus” gives us money to replace assets (DRF), carry out Research and Development (RDSO!)

Surplus = Earnings –Expenditure = Earnings – (Fixed Costs* + Variable Costs)

* Here we are talking about money spent on Revenue expenditure and not Capital Expenditure. Fixed Costs (FC) are costs which do not vary with PKM and NTKM (such as Salaries, Depreciation etc.)

In contrast Variable costs (VC) vary directly in proportion to scale of operations (i.e. PKM and NTKM)

In railways conventionally we measure “Operating Ratio” (OR)



- Operating Ratio = (Expenditure/Earnings)X 100

- Operating Ratio is an indicator of how much railway spends for earning Rs100 and hence gives an indication of Surplus.

- To improve OR--We can increase the Earning or decrease Expenditure. Earnings can be increased with increase of Fixed Costs (FC) or without increasing Fixed Costs (by increasing PKM and NTKM with consequent increase of only Variable Cost (VC).

Concept of Contribution:

- Total revenue increases with each PKM or NTKM of traffic carried and similarly total VC also increases with each PKM and NTKM.

- Contribution per unit of traffic carried = Revenue per unit of traffic carried – variable cost per unit of traffic carried

- Total contribution = number of units of traffic carried X contribution per unit

- Total contribution is the fund generated to meet fixed costs and if total contribution is more than the total fixed cost for that year, we will generate “surplus”

- Surplus (S) = Total revenue (TR) – Total cost (TC) = TR-TC

                                                                                          =TR- (FC+VC) = (TR-VC) –FC                                                                                                                                                                                                                                                                                                                                                           

                                                                                          =Total Contribution –FC

                                                                                          = (Contribution per unit x No. of units) –FC

Please note that: Contribution per unit = Sale price per unit- Variable Cost per unit

The concept of “contribution” is very important for railway finances because there are many situations where Surplus can be increased by increasing the volume of traffic carried without spending additional funds on incurring fixed costs. This is called “playing on volume”. For example we are said to be playing on volume, when we are trying to increase occupancy of a coach or even when we add extra coach to a train.

When we “play on Volume”, we reduce Total cost per unit since more NTKM or PKM will reduce Fixed Cost per unit-since the fixed cost is spread over more units of output (PKM or NTKM)

Please note that contribution is different for different products. For example the contribution for an AC 3-tier berth is much higher than unreserved seat in passenger train. So if we want more profit we need to sell more PKM on AC 3-tier. Similarly we get more contribution when we sell Tatkal berth.

Can you think of other cases of “playing on volume”?



Heads of earnings on IR:

Passenger Earning: This constitutes about 27% of Total Revenue (TR) of IR. These earnings are by and large linked to PKM (Passenger Kilo meter). To improve PKM without increasing FC

- increase fare per PKM (be careful-demand may reduce- people may move to flights) or increase    PKM (reduce idling of coaches – improve rake links)

- We have to find where there is unmet demand

- If unmet demand is in upper classes revenue generated is more since contribution is higher

- Where demand is less, move coach to train with higher demand

- Tatkal quota

- Move special coaches

- Dynamic fares (when demand is high charge more , when demand is less give discount – please note that an unoccupied berth does not give any earning, so we can sell such berth even at a very low price – remember your fruit merchant, he sells fruits at throw away prices when they are likely to get spoiled.

Freight Earnings: This constitutes about 64% of Total Revenue of IR and is considered as “bread and butter” of IR. These earnings are by and large linked to NTKM (Net Tonne Kilo Meters)

- To increase the freight earnings either we increase Freight per NTKM or we try to boost the NTKMs.

- Today we mostly carry Coal, Cement, Mineral and metal ores, POL, Food grains and Fertilizers – all low value goods so their capacity to pay revenue per NTKM is low.

- The total freight traffic carried by IR has come down from 89% of total goods traffic carried in the country to 40%- POL went to pipelines- Cement, Food grains etc are increasingly going to road. Even Coastal Shipping is taking away Cement Power sector allocation of Coal is rationalized to avoid cross traffic.

- Non availability of wagons to meet peak demand and surplus wagons in low demand season.

Strategies to Improve Freight Earnings:

Operating Strategies:

-Increase of CC of wagons (reduce tare- increase height)

-increase length of train (run long goods trains)

- improve speed limits of goods trains

-generate line capacity

-Improve loading unloading facilities

-Encourage customers to mechanize loading and unloading (to improve wagon turnaround)

Commercial Strategies:

´  Offer Mini rakes, two point rakes, multi-point rakes

´  Empty direction traffic generation

´  Cargo aggregation

        -     Concessions to loyal customers

´  Facilities such as Rail side warehousing,  private freight terminals

´  Schemes like Engine on load, wagon investment scheme

´  Connectivity to ports

´  Container Terminals and Multi-modal facilities

´  Dynamic Freight charges

´  Install accurate in-motion weigh bridges.

´  Develop strategies to re-attract wagon load traffic

Other Coaching Earnings

This constitutes other than earnings on account of PKMs

Parcel Traffic:

- Good for recapturing lost wagon load and smalls traffic

- For High value commodities

- Quick ad assured transit(no lorry can reach your goods to Delhi in 24hours like our Telangana Express)

- Leasing of VPU space (we fail in this because of poor contract management)

- VPU trains

-Use of room availability on coaching trains

- Use of SLR capacity (many SLRs are still going vacant)

-Refrigerated vans and terminals (our country loses perishables due to lack of refrigerated storage and transport)

Sundry Earnings

- World over Non-fare revenue of railways is 10 to 20% (In Hyderabad metro the non-fare revenue is far higher than Fare revenue)

- IR non-fare revenue peaked 6% in 2016-2017

- Difficult to increase fares for political reasons and elasticity of demand

- Non-fare revenue can be increased to any extant- but creativity is needed.

- Traditional sources- Catering, Book stalls, Telephone booths, Medicine Shops etc, advertising, sale of scrap, Luxury Tourist trains

- Modern sources- Internet Kiosks, Commercial exploitation of real estate, on train magazine shops, water ATMs, sale of organic food

5.0 Conclusion: Earnings should be improved as far as possible without incurring higher fixed costs, since this leads to higher margins. This requires improvement in asset utilisation like wagon Km/Wagon day, Engine Km per Engine day, line capacity utilisation. Only after these saturate we should go for higher fixed cost options like adding of new lines, new wagons etc.

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Tuesday, December 25, 2018

WTR - Wagon Turn Around with Practical example


WTR - WAGON TURN ROUND

ü  Definition:  The interval of time between two successive loadings of a wagon is called Wagon Turn Round.

ü  Wagon Turn Round performance is denoted in terms of "Days".

ü  If the No. of Wagon Turn Round days is reduced, the performance considered to be more  or vice versa.

ü  In simple terms, "calculated from the time a wagon is placed for loading till the time it again becomes available for reloading", is the actual wagon turn-round.

ü  Thus, all detentions to a wagon, from the time it is placed for loading till it is again placed for reloading after passing through the cycle of loading, dispatch, transit, unloading and again made available for reloading, enter into the calculation of turn-round.

ü  Means wagon turn round is 11 days means, the wagon could be loaded around 32 times a year. (360 days/11 days). 

ü  If wagon turn round is reduced from 6 days to 5 days, the same wagon could be loaded around 72 times a year. (360 days/5days).

Year
1950-51
2013-14
Wagon Turn Round
11 days
5.13  days

ü  This (Reduction of Wagon Turn Round days) has been achieved as a result of
a)    improved mobility of wagons.
b)    quick loading & unloading of wagons.
c)    reduction in detentions.
d)    and improvement in speed of goods trains.



ü  Formulae for WTR - Wagon Turn Round  = WB/(L+R)   

ü  WB is Wagon Balance (effective average),  L is Daily average number of wagons Loaded, R is Daily average number of wagons Received.

Practical example of WTR:

Calculate Wagon Turn Round from the following data:

1.    Daily Average Wagon balance: 15500
2.    Average daily non effective wagons  A) Sick - 200 B) Departmental -300
3.    Average daily loading - 800
4.    Average daily received - 700
Answer:
1.    Effective average wagon balance daily = Wagon balance minus Sick & Dept
                                                              = 15500 - (200+300)
                                                               = 15000
2.    WTR = WB/(L+R)   

WTR= 15000/(800+700)

WTR= 10



ü  Wagon is the bread earning horse of the Railways, load it adequately. Make it run and don’t stable it.

                                                ******

Monday, December 17, 2018

Some Important questions in Traffic Accounts

Some Important questions in Traffic Accounts.  Its not complete list. My advice is to read and cover entire syllabus irrespective of Important or Not Important.  Subsequently put more preference for important ones because they are repeatedly asked in previous examinations as well as for importance they associated with in working of Indian Railways.
  1.  LTTC - Long Term Tariff Contract
  2. STS - Station To Station Rates
  3. LWIS - Liberalized Wagon Investment Scheme
  4. PFT - Private Freight Terminal
  5. SLR Leasing
  6. Non fare Revenue
  7. Tatkal
  8. Premium Tatkal
  9. Premium trains
  10. Traffic Suspense
  11. Station Outstandings
  12. Traffic Book and its parts
  13. Apportionment of Earnings
  14. Earnings Budget
  15. Cash in transit
  16. Role of TIA in preventing leakage of Revenue
  17. Objects of Traffic Accounts Office
  18. Dynamic Pricing policy
  19. FOIS - Freight Operations Information System
  20. COIS - Coach Operations Information System
  21. UTS - Unreserved Ticketing System 
  22. Terminal charge
  23. Piligrim tax
  24. Non Issued ticket
  25. Wagon Turn Round
  26. Withdrawals from Station earnings
  27. Way Leave charges
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Thursday, November 22, 2018

Traffic Accounts - Important Questions


Traffic Accounts - Important Questions
(compiled by Shri Sreedhar, AA/SCR/Secunderabad)
1. Traffic book and its parts
2. Cash in transit/stores in transit
3. Elements of passenger classification
4. Objects of traffic accounts office
5. Role of TIAs in preventing leakage of revenue
6. Accounts office balance sheet
7. Traffic suspense
8. Dynamic pricing policy
9. FOIS
10. COIS
11. UTS -
12. Sundry earnings
13. Journey of traffic earnings from station to cash office and accounts at RBI/Nagpur
14. Apportionment of traffic earnings
15. Terminal charges
16. Pilgrim tax
17. Non issued ticket NI statement
18. Traffic classification
19. Wagon turn round
20. Withdrawal from station earnings
21. Various types of frauds
22. Maintenance of ROB/RUB
23. Way lease charges

Tuesday, September 18, 2018

STS - Station To Station Rates - Most important question

STS - Station To Station rates

(Most important question for Traffic Accounts optional & GRP)

By Shri Benhur, SSO(A)/Hqrs/SC Rly

Click here for comprehensive Rate Circular 26 of 2016 for "Station To Station" rates.


ü  In order to  attract more traffic and augment  earnings, Station to Station rates are adopted for  a specific stream of traffic for a particular commodity  for movement between a specific originating and destination points

Eligibility

ü  Applicable for the existing  as well as new traffic for concession under STS.  

ü   Station to station rates are applicable for all commodities with classification above class “100” except the following:

A) All commodities under main commodity head “ Coal & Coke

B) Iron Ore  (All Types)

C) Military sidings, POL and RMC


Conditions

A) Concession is admissible to  Block rake, two/multi point rake, mini rake etc.,

B) The maximum percentage of discount under STS shall upto 30% for incremental traffic and for retention traffic a maximum of 15% can be granted.

C)  Freight realised after allowing concession  under STS should   not be lower than  NTR “class 100”

D) Concession can be granted on monthly/quarterly/half yearly/yearly as per the request of the party. The period of agreement should not be less than one year.

E) the customer has to cross the benchmarks fixed to become eligible for concession under STS and the concession will be given from the next rake after the specified benchmarks are crossed. For example if the customer crosses the benchmark in 10th rake, will be eligible for concession from 11th rake.

F) concession can be granted for the volume of traffic for which no other scheme of concession is granted Viz. TEFD, LWIS etc.


ü  The Board vide  Para 6.0 of R.C. no 26 of 2016 have stated that the zonal Railways can modify the procedure as per the field requirement for grant of concession under STS.

ü  In this Railway a PHOD committee comprising COM, CCM & FA&CAO would scrutinize the  cases and recommend the percentage of concession to be granted to GM for sanction.

ü  The PHOD committee  has decided that the customer becomes eligible for concession on crossing all the following benchmarks:

1. Cluster benchmark
2. Station benchmark
3. Customer Benchmark
4.  O-D (Originating and destination) pair benchmark


Fixation of Benchmarks
ü  A DEC (Divisional Empowered Committee) consisting of a Commercial Inspector and a TIA nominated by DRM will workout the various benchmarks taking average NTKMs  of two previous years either month wise, quarterly or half yearly as per the request of the customer.

ü  The Average NTKMS are worked out  by multiplying the distance carried with the weight as recorded in the RRs. For example the benchmark  for the month of April 2017 is worked out taking the average  NTKMS of April 2015 and April 2016

ü  This DEC report should be approved by the concerned DRM.

ü  The procedure followed for grant of Concession under STS is as under:

1. The customer will submit the application to the DRM
2. DRM nominates the DEC and approves the report and send to Hqrs through concerned Sr.DCM for processing the concession
3. Commercial branch processes  the case and put up to the PHOD committee             ( COM,CCM & FA&CAO)  for their recommendation and obtains the sanction of GM for concession under STS.
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Thursday, September 13, 2018

Accounts Code II - Revised (for Traffic)

After 30 years , Indian Railways Accounts Code Part 2 (deals with rules and procedures of  accountal of Traffic Receipts) has been revised and published by Railway Board on 30.08.2016.

Click here for Accounts Code Part Two 
(useful for candidates who opt for Traffic Accounts)

Monday, August 13, 2018

Cash Remittance Note


Cash Remittance Note
                                              Station Accounts - Without books  2016  - 5 marks

·         CR (Cash Remittance) Note  is the Remittance Note used by the Station Masters for sending the cash, Cheques & Vouchers to the Cash Office

·         Serially numbered and bound in Book.

·         Prepared in 3 foils.
o   First  -Block Foil - Retained with the Station Master. 

o   Second - Counter foil sent to the Traffic Accounts office by the Cashier . duly stamped with the office seal and signed by the Cashier and the Cash witness and return the same to the Station Master. The same should be attached to the respective Block foil.

o   Third - Outermost foil passing to the Traffic Accounts Office

·          Only One C R Note  - for remittance of all the cash received at the Station from all Sources.

·         Erasures/alterations in the CR Note are totally forbidden.  If it is required, fresh one is prepared duly cancel the incorrect one.

·         Reverse side of CR Note - Details of Currency notes, cheques & Vouchers which represent cash should be noted. If space is not sufficient, a separate memo should be prepared in manuscript.

·         Must be personally signed by the Station Master or authorized person and stamped with his station cash seal.

·         A memo of vouchers must invariably be prepared separately for goods and coaching vouchers. The memo of vouchers, together with the vouchers, should be placed in an envelope which should be sealed and the total amount of the vouchers enclosed should be clearly recorded on the outside of the cover.

·         The number of the cash bag in which the cash is remitted should be entered on all the three foils of the cash remittance note.

·         Nil CR Note - prepared with the word NIL on CR, if there  is no cash.

·         Responsibility of Traffic Cash witness - Signing the counterfoils of CR note and see  the entries of the CR notes are correctly made in the Cash Office records.

·         If a cash receipt is not received back in time, the Station Master should immediately report its non-receipt to the Cashier.

·         The credit on account of cash and vouchers should be taken in the balance sheet on the basis of the cash receipts received from the Cashier and not on the basis of remittances.

Procedure - Railway Stations/out agencies permitted to pay their cash collections direct to nearest authorised Bank:

·         Each remittance should be sent to the authorized Bank with the book of TR Notes (Treasury Remittance Notes) printed in blue paper in the proforma appearing at Appendix XXIV/E

·         TR note containes - 3 foils.

·         The Bank, will write in words at the foot of each form for the amount received, will retain the third foil and return the book with first and second foils duly signed. 

·         The foil bearing the signature of the said officer should be sent to the Cashier along with the cash remittance note.
****