EMD AND SD IN STORES CONTRACTS

EMD AND SD IN STORES CONTRACTS

Authority : 1)2018/TRANS CELL/STORES PROCUREMENT dated 02.01.2019  -  Click here

                      2) 2004/RS(G)/779/11/pt dated 27.03.2019   - Click here

EMD – Rates for Stores Contracts

Estimated value of Stores tender	EMD (rounded off to nearest higher Rs.10
Up to Rs. 5 Lacs	NIL
Above Rs. 5 Lacs to Rs. 20 Crores	2 % of estimated value of the Tender subject to maximum Rs. 20 Lacs
Above Rs. 20 Crores to Rs.100 Crores	1 % of estimated value of the Tender subject to maximum Rs. 50 Lacs
Above Rs.100 Crores	0.5 % of estimated value of the Tender subject to maximum Rs. 1 Crore

ü  Offers submitted without EMD shall be summarily rejected.

ü  Automatic online release of EMD of unsuccessful tenderers immediately after finalization of the Tender.  

EMD is exempted in the following cases

1.       Estimated value of Stores tender up to Rs.5 Lacs

2.       MSEs (Micro & Small Enterprises) registered for the Tender item.

3.       Other Railways and Govt departments

4.       Indian Ordinance factories

5.       Railway PSUs (Public Sector Undertakings) and PSUs for the group of items that are manufactured by them.

Exemption from EMD in Stores contracts

ü  Shall be decided prior to issue of Tender for Single Tender, PAC items etc

ü  Suitably incorporated in Tender conditions

ü  Requires personal approval & Finance concurrence as detailed below.

Required	Headquarters	Field units (Divisions, Depots, construction etc)
Personal Approval	Authority competent to accept the Tender based on estimated value thereof, but not below the level of PCMM on case to case basis	Authority competent to accept the Tender based on estimated value thereof, but not below the concerned SAG level (ADRM, CWM, CAO etc) on case to case basis
Finance concurrence is	not required	required

SD – Security Deposit in Stores contracts

ü  10 % of the Contract value, subject to maximum of Rs.5 Crores.  Rounded off to nearest higher Rs. 10.  No ceiling for SD in Global Tenders for procurement of Stores.

ü  Shall remain valid for a period of 60 days beyond the date of completion of all contractual obligations.

ü  Deposit SD within 14 days of issue of LOA – Letter of Acceptance.

ü  No extension of time for submission of SD

ü  The EMD submitted by successful tenderer shall be automatically adjusted towards the SD.  The balance SD amount should be deposited within 14 days of the issue of LOA. 

ü  Otherwise (i.e., Balance SD not desosited), the EMD shall be forfeited and case be dealt with as that of withdrawal of offer by the Tenderer as per extant instructions.

ü  In case of failure by contractor to meet deliveries for any lot, Railways may cancel the contract for default part by forfeiting SD commensurate to that lot.

ü  Risk purchase clause shall not be applicable wherever SD clause is applicable.

ü  Wherever SD clause is not there, Risk purchase will be made as per extant guidelines.

SD is exempted in the following cases

1.       Estimated value of Stores tender up to Rs.1 Lac

2.       Other Railways and Govt departments

3.       Indian Ordinance factories

4.       Railway PSUs (Public Sector Undertakings) and PSUs for the group of items that are manufactured by them.

Exemption from SD in Stores contracts

ü  Shall be decided prior to issue of Tender for Single Tender, PAC items etc

ü  Suitably incorporated in Tender conditions

ü  Requires personal approval & Finance concurrence as detailed below.

Required	Headquarters	Field units (Divisions, Depots, construction etc)
Personal Approval of	Authority competent to accept the Tender based on estimated value thereof, but not below the level of PCCM on case to case basis	Authority competent to accept the Tender based on estimated value thereof, but not below the concerned SAG level (ADRM, CWM, CAO etc) on case to case basis
Finance concurrence is	not required	required

LD – Liquidated damages for delayed supply

ü  0.5 % of the price of stores per week or part of the week of delay

ü  Upper limit – 10% of the value of contract (irrespective of delays)

&&&&

MIS CLASSIFICATION OR ANNEXURE "J"

MIS CLASSIFICATION  OR ANNEXURE  “J”

1990,1993,1994 (with Books)                                                          5 Marks  - short notes question    

       Ü  During the course of accountal in books, an expenditure or income wrongly appeared in any other Head of Account instead of Proper Head of account, the mistake is known as MIS CLASSIFICATION.

       Ü  During the course of financial and other reviews, it is checked that whether there is any booking misclassified and if found the same is regulated in the same year through Journal entry.

       Ü  Examples are:

§  Booking in HBA instead of Motor Car advance.

§  Booking in Coaching Earnings instead of Goods Earnings.

§  Booking in One Demand instead of another Demand.

§  Booking in Revenue Demand instead of Plan heads or vice –versa.

        Ü  A statement showing items of misclassification and other important mistakes either detected by Statutory Audit or by Accounts should be prepared in ANNEXURE – J (Statement of important misclassifications and Other important mistakes detected)

        Ü  Pro forma of Annexure J is as follows.

Name of Railway               Grant affected   Brief description of Mistake   Amt.(Rs.)             

1.

2.

3.

Important change in Annexure J

(after merger of Railway Budget with General Budget from 2017-18 onwards)

1. Annexure J  - Big Relief to Indian Railways - Statement of Misclassification is now limited to Misclassification from Revenue to Capital or vice versa and Voted to charged or vice versa)  - Included in Appropriation Accounts and goes to Parliament through PAC

2. Misclassification from One SMH to another SMH on Revenue segment only figured under Statement of Other Mistakes (Not Statement of Misclassification)  - Not appeared in Appropriation Accounts.  To be settled at Zonal Railway level only.

Type	Examples	Dealt at
Misclassifications	Voted to Charged or vice versa Capital to Revenue or vice versa	Railway Board.  Unresolved will become part of Audit Report
Other Mistakes	One SMH to another SMH	Zonal Railway only (Need not send to Railway Board)

 

LDCE ACCOUNTS QUESTION PAPERS OF NWR 2021

 

NORTH WESTERN RAILWAY

Accounts Department

Limited Departmental Competitive Examination (LDCE) for selection to the post of Assistant

Financial Advisor (Group ‘B’ Service-30% quota)

 

 

 

PAPER-I

 

 

Date: 20/11/2021

 

Time Allowed: 3 HoursMaximum Marks: 150

This paper contains three sections viz. A, B & C.  All sections have to be answered. Each section carries equal marks.

 

[Note: (1) Do not write your Roll No./Name anywhere in the answer book. Write your Name, Designation, and Roll No only in the assigned space in the file leaf only. If the candidate writes Name / Designation/ Roll No, or any symbol / indication in the answer book, the candidature shall be disqualified. (2) Answer to Q.3 has to be given in English only and answers to other questions have to be written in either in English or Hindi. (3) In case of any discrepancy between the English and Hindi versions of this question paper, English version will be treated as final.]

 

Section-A: General Knowledge, English and Official Language Policy                                     [50 marks]

 

Section-B: General Principles of Government Accounting and Auditing with special reference

To the Railways   [50 marks]

 

Section-C: Books and Budgeting including Traffic Book   [50 marks]

 

 

 

Section-A

General Knowledge, English and Official Language Policy

 

 

Q.1             Write the full form of the following abbreviations:                                                                                               (5 marks)

                     (i) UNICEF        (ii) UPSC           (iii) GDP            (iv)  PFRDA         (v)  UIDAI

 

Q.2             Write short notes on any two of the following:     

                                                                                               (10 marks)

i. Election Commission

ii. President Rule

iii. NITI Aayog

 

Q.3 (A)       Write an essay (about 300 words) on any one of the following:                                                                         (20 marks)

 

                    1. Freedom struggle of India

                    2. Unity in diversity

                    3. Honesty is the best policy

 

(B)     Write the antonyms of the following:                                                                                                                        (5 marks)            

                  1. Ancient      2.  Abundant     3. Conceal       4. Ugly         5. Frequent

 

Q.4          What is the Official language policy of the Union of India? Give salient features of the

                  Official Languages Act 1963.                                                                                                                                         (10 marks)

 

 

 

Section-B

 

General Principles of Government Accounting and Auditing with special reference to the Railways

 

 

Attempt any two of the following; each question carries 25 marks:

 

                  Q.5   a. What do you mean by ‘statutory audit’                                                                                                                         (7 marks)

                           b. Write short notes on the following:                                                                                                                               (18 marks)

                                (1) Draft Para

                                (2) Special Letter

                                (3) Public Accounts Committee (PAC)

 

                  Q.6   Distinguish between the following:                                                                                                                                        (25 marks)

                           1. Originating earning and apportioned earning.

                           2. Write-back and write-off

                           3. Consolidated fund and contingent fund

                           4. Demands payable and Demands recoverable

                           5. Block Account and Loan Account

 

                  Q.7   Give a detail of the system of maintenance and compilation of Railway Accounts.                                                       (25 marks)

 

 

 

 

Section-C

 

Books and Budgeting including Traffic Book

 

     Attempt any two of the following; each question carries 25 marks:

 

       Q.8     What is Traffic Book? How is it posted and what purpose does it serve?                                                                         (25 marks)

 

 

       Q.9     (A)  What is the purpose of Operating Suspense Account?                                                                                                  (7 marks)

 

                   (B) Briefly discuss the operation and accounting of the following Suspense heads.

 

(a)    Cheques & Bills, (b) Remittance into bank,(c) Purchase Suspense                                                                       (18 marks)

 

      Q.10   Write short notes on the following:   (25 marks)   

                                          

i.   Outcome budget

                  ii.  Performance budget

 iii. Zero based budgeting

                  iv. Accrual accounting

                  v.  Transfer transaction

 

 

                                                                                                    NORTH WESTERN RAILWAY

                                                                                                         Accounts Department

                                                  Limited Departmental Competitive Examination (LDCE) for selection to the post of Assistant

                                                                                         Financial Advisor (Group ‘B’ Service-30% quota)      

 

 

 

                                                                                                                  PAPER-II

 

 

Date: 21/11/2021

 

Time Allowed: 3 HoursMaximum Marks: 150

This paper contains three sections viz. A, B & C.  All sections have to be answered. Each section carries equal marks.

 

[Note: (1) Do not write your Roll No./Name anywhere in the answer book. Write your Name, Designation, and Roll No only in the assigned space in the file leaf only. If the candidate writes Name / Designation/ Roll No, or any symbol / indication in the answer book, the candidature shall be disqualified. (2) Answer to all questions have to be written in either in English or Hindi. (3) In case of any discrepancy between the English and Hindi versions of this question paper, English version will be treated as final.]

 

Section-A: Financial Justification for Expenditure and Traffic Costing                                                    [50 marks]

 

Section-B: Management Accounting                                                                                                            [50 marks]

 

Section-C: Traffic Accounting and Statistics & Establishment   [50 marks]

                                                             OR

                    General Expenditure Accounts and Workshop & Stores Accounts

 

 

 

Section-A

Financial Justification for Expenditure and Traffic Costing

 

Answer any two questions: (each question carries 25 marks)

 

Q.1     What are the points to be kept in mind while examining the following in finance:

 

a.       Land licensing proposal, b. Station to Station Rates, c. Detailed Estimate,

d.    Crossing Station, e.  Variation Statement                                                                                                                 (25 marks)

 

Q.2      Describe the methodology adopted by the Indian Railways to work out the costing for Freight

             And Coaching Services                                                                                                                                                                          (25 marks)

 

Q.3      Name and describe the various sources/ funds available for financing Railway Projects                                                          (25 marks)

 

 

 

 

Section-B

Management Accounting

 

 

Attempt any two questions: (each question carries 25 marks)

 

Q.4       Write short notes on the following:                                                                                                  (25 marks)

              (a) Debt Equity Ratio, (b) Marginal Costing, (c) Opportunity Cost,

              (d) Liquidity Ratio, (e) Working Capital

 

Q.5     a) Bring out the difference among partnership firm, joint venture firm and consortium of firms.                                              (15 marks)

 

           b) Describe DCF method of project appraisal.                                                                                                                                        (10 marks)

 

Q.6     What is the difference between Internal Check and Internal Audit? Give a brief description of scope and

            Objective of Internal Audit.                                                                                                                                                                       (25 marks)

 

 

 

 

 

 

Section-C

 Traffic Accounting and Statistics & Establishment

 

 

Attempt any two questions: (each question carries 25 marks)

 

Q.7      Write short notes on the following:

 

(a)   Accounts Office Balance Sheet, (b) Traffic Suspense, (c) Cash Remittance Note,                                 

             (d) Cash in Transit, (e) Error Sheet                                                                                                                                           (25 marks)

 

Q.8      Write short notes on the following:

 

(a)   Permanent Negotiating Machinery, (b) Child Care Leave, (c) National Holiday Allowance,

(d) Night Duty Allowance, (e) Leave Encashment                                                                                                                 (25 marks)

 

Q.9      Write short notes on the following:

 

(a)   GTKM and NTKM, (b) Statement no.6A, (c) Statement no.7A,

(d)  Statement no.7C, (e) Route Kilometer and Track Kilometer                                                                                         (25 marks)

 

 

 

 

                                                                                                                         OR

 

                                                  General Expenditure Accounts and Workshop & Stores Accounts

 

 

Attempt any two questions: (each question carries 25 marks)

 

Q.10     Write short notes on the following:

 

(a)   Excess over estimates, (b) Completion Report, (c) Final Location survey,

(d)  Vitiation of Contract, (e) Price Variation Clause                                                                                                             (25 marks)

 

Q.11       What is inventory management? Why it is necessary and how it is being managed on Indian

                Railways?                                                                                                                                                                                     (25 marks)

 

Q.12       Why it is necessary to operate a suspense account to book the expenditure in a Workshop?

                Describe briefly how such a suspense account is operated.                                                                                              (25 marks)

 

 

 

****