LDCE - QUESTION PAPERS

SCR 2019 


SCR 2016 

SCR 1995-2013 PAPER ONE


SCR 1995-2013 PAPER TWO


CR 2009-2013

SWR 2015

SER - QUESTION PAPER ONE - LDCE 2019

MANAGEMENT ACCOUNTING – IMPORTANT QUESTIONS

MANAGEMENT ACCOUNTING – IMPORTANT QUESTIONS

Note:

1)       The below mentioned areas are arrived based on past question papers of LDCE for Accounts Department of various Zonal Railways

2)      The list is not exhaustive.

v  Functions of Management Accountant

v  Distinguish between Management Accounting and Financial Accounting.

v  Ratio Analysis

v  Break Even Point

v  Different types of Budget like Capital budget, cash budget etc

v  Different types  of costing like marginal costing, incremental costing etc

v  Cost Benefit analysis

v  Funds Flow, Cash Flow

v  PERT and CPM

v  Productivity Test

LDCE SWR 2015 Question Papers

LDCE SWR 2015 Question Papers

LDCE - Central Railway 2009 to 2013 Question papers

CLICK BELOW FOR LDCE QUESTION PAPERS OF CENTRA RAILWAY FROM 2009 YEAR TO 2013 YEAR

CR - LDCE - QUESTION PAPERS

LDCE question papers from 1995 to 2013 of SCR

LDCE question papers from 1995 to 2013 of SCR

Click below for download or view

PAPER ONE    PAPER TWO  

SCR 2016 LDCE Question papers

SCR 2016 LDCE Question papers

Click below 

SCR LDCE QUESTION PAPERS

Z B B – ZERO BASED BUDGETING

Z B B – ZERO BASED BUDGETING

Salient Features:

ü  A technique of planning and decision making which reverses the working process of traditional budgeting.

ü  In traditional budgeting (incremental budgeting), Managers justify only increases over the previous year’s budget and what has been already spent is automatically sanctioned.  No reference is made to the previous level of expenditure.

ü  By contrast, in Zero-based budgeting, every department function is reviewed comprehensively and all expenditures must be approved, rather than only increases.

ü  Requires the budget request be justified in complete detail by each Manager starting from the Zero-base.

ü  The zero base is indifferent to whether the total budget is increasing or decreasing.

ü  ZBB is especially encouraged for Government budgets because expenditures can easily run out of control if it is automatically assumed what was spent last year must be spent this year.

ADVANTAGES:

ü  Efficient allocation of resources, as it is based on needs and benefits.

ü  Drives Managers to find cost effective ways to improve operations.

ü  Detects inflated Budgets.

ü  Useful for especially Service Departments like Telecom, Railways etc, where the output is difficult to identify.

ü  Identifies and eliminates wasteful and obsolete operations.

ü  Eliminates the “spend it or lose it” mentality of traditional budgets/incremental budgets.

DISADVANTAGES:

ü  Difficult to define decision units and decision packages.

ü  Time consuming and exhaustive.

ü  Difficult to understand and communicate the budgeting because more managers are involved in the process.

ü  Forced to justify the every detail related to the expenditure.  So not suitable for R & D depts.

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Vote on Account - VOA

Vote on Account

v  Definition:  Grant of funds IN ADVANCE for the Short period (say 2 or 4 months) instead of FULL YEAR BUDGET is sanctioned by Parliament is called VOTE ON ACCOUNT.

v  In simple, a Statement, where the Government presents an estimate of a sum required to meet the expenditure that it incurs during the first 2 or 4 months of an financial year until a new government is in place, to keep the machinery running without a difficulty.

v  Duration:  Normally, the Vote on Account is taken for two months only. But during election year or when it is anticipated that the main Demands and Appropriation Bill will take longer time than two months, the Vote on Account may be for a period exceeding two months.

v  Authority:  Article 116 of the Constitution of India.

v  Why required:  Occasions may arise, such as formation of a New House of Parliament ( means New Government) after General elections or other developments owing which the Governments may delay the presentation of FULL YEAR BUDGET.

v  Sometimes, system of constituting the Special Parliamentary standing committee to study the Budget in detail.  In such cases, presentation of FULL YEAR BUDGET is not practicable before the commencement of Financial year i.e., 1st April.

v  In such situations, seek authority for expenditure for a short duration of a few months (usually 4 months) until the Budget for full Financial year is passed by the Parliament.

v  Remember, the Parliament consists of 1. President of India 2. Lok sabha (House of the Peopl) 3. Rajya Sabha (Council of States).

v  Latest example is - Vote on Account for four months in 2014-15 Financial year i.e., from April to July' 2014.

DIFFERENCE BETWEEN VOTE ON ACCOUNT & INTERIM BUDGET

      A Vote On Account deals only the expenditure side, whereas Interim Budget is deals both the Expenditure and Receipts.

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VGF - Viability Gap Fund

 

VGF - Viability Gap Funding

 

 

v  VGF is in the limelight after Central Government gave in approval of  viability gap funding of Rs. 1,458 crore (12.35 per cent of total project cost of Rs. 11,814 crore) under the VFG scheme to the project from government of Andhra Pradesh for development of Hyderabad Metro Rail on DBFOT (toll) basis.

v  DBFOT  - Design, Build, Finance, Operate and Transfer

 

 What is viability gap funding?

 

v   There are many projects with high economic returns, but the financial returns may not be adequate for a profit-seeking investor.   

 

v The lack of financial viability usually arises from long gestation periods and the inability to increase user charges to commercial levels.

 

v  Example, a rural road connecting several villages to the nearby town. This would yield huge economic benefits by integrating these villages with the market economy, but because of low incomes it may not be possible to charge user fee.

 

v   In such a situation, the project is unlikely to get private investment. In such cases, the government can pitch in and meet a portion of the cost, making the project viable. This method is known as viability gap funding.

 

v   Under VGF, the central government meets up to 20% of capital cost of a project.

 

v  The state government, sponsoring ministry or the project authority can pitch in with another 20% of the project cost to make the projects even more attractive for the investors.

 

v   Potential investors(like L&T corporation in Hyderabad Metro bidding) bid for these projects on the basis of VGF needed.

 

v  Those needing the least VGF support will be awarded the project. (in case of Hyderabad Metro, L&T Corporation is the lowest bidder with Rs.1458 Crores i.e., 12.35 per cent of total project cost of Rs. 11,814 crore )

v   VGF is disbursed only after the private sector company has subscribed and expended the equity contribution required for the project.

 

v   Example is the viability gap funding i.e., Rs.1458 Crores will start flowing after the concessionaire L&T Metro Rail Hyderabad (L&TMRH) will spend its equity share of Rs.2,768 crore of the total project cost of Rs.12,132 crore in Hyderabad Metro project.

 

v  The scheme is administered by the ministry of finance.

Which are the eligible sectors?

 

v   Roads, ports, airports, railways, inland waterways, urban transport (Hyderabad Metro), power, water supply, other physical infrastructure in urban areas, infrastructure projects in special eco-nomic zones, tourism infrastructure projects are generally eligible for viability gap funding. The government now proposes to add social sectors such as education and health to the list.

 

v Ministry of New and Renewable Energy has proposed to fund solar energy projects under phase-II of the Jawaharlal Nehru National Solar Mission (JNNSM) through viability gap funding (VGF).  

How does the government benefit?

 

v    The government has limited resources. It can use those funds to build everything on its own, but such public funding will take years to create the infrastructure that is needed to achieve higher growth.

 

v To make infrastructure projects attractive for the private sector, government introduced viability gap funding (VGF) in 2004 by subsidising the capital cost through public-private partnership (PPP) framework.

 

v  Through viability gap funding, the same amount of funds can be used to execute many more projects through private participation.

 

v  VGF is in that sense a force multiplier, enabling government to leverage its re-sources more effectively.

 

What has been the success rate?

 

v   During 2005 to 2020 year:

 

A.   Approved VGF – Rs. 5600 Crores

B.   No. of Projects – 63

C.   Total investment involved Rs. 35000

 

 

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Theme based Audit- Very important

Theme based audit 

v Introduced in the year 2006 @ CAG audit

v Usually Audit inspections have become routine in nature.  That means concentrate on the bills, vouchers submitted to the accounts office by the Executives.

v Regular audit inspections are not contributing any major system improvement.

v So to obviate the above limitations in the regular audit and as a system improvement,  Theme based Audit introduced at CAG audit inspections in the year 2006.

v In Railways Accounts administration too, Internal Audit Cells (formed around 1993 year) are advised to carry out the "THEME BASED AUDITS" for system improvement. 

v Procedure of "Theme based Audit" in Railway administration is as follows.

(Authority:  Railway Board letter No. 2015/AC-II/20/16 dated 20.10.2015. Click here for letter -                               )

1.     Identification of 2 subjects per year by FA&CAO in Zonal Railway/Production Unit.

2.     Holding entry level conference with concerned PHOD's in presence of General Manager.

3.     Nomination of Nodal officer in each dept. to facilitate system audit.

4.     Completion of Internal Audit Report.

5.     Holding Exit conference on the Draft Internal Audit Report by FA&CAO with PHOD concerned in the presence of General Manager.

6.     Finalization and submission of Final Internal Audit Report to PHOD concerned.

7.     Concerned PHOD will submit ACTION TAKEN REPORT thereon to General Manager through FA&CAO along with copy to Railway Board (within 90 days)

8.     Salient features of the Internal Audit Report will be shared with all the Zonal Railways for information and system improvement.

9.     Executive Director/Finance Commercial is the Coordinator at Railway Board for Theme based Audits.

South Central Railway - Theme based Audit subjects
2015-16	2016-17
1. Inventory mgmt. & accountal of HSD oil at RCDs	1. Track materials - Procurement, Accountal & Utilization
2.  Procurement, utilization & accountal of Sand by RCDs & Sheds	2. Freight loading - Unmet demand for Wagons & solutions

Note:

Candidates are advised to understand the above one carefully, as it is the latest topic in Audit side and expect short notes question in Appendix 3 (IREM) exams/LDCE.  5 marks question asked on this subject in LDCE -SWR 2016 Paper I.

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