Differences between Write back and Write off

5 marks question in General Expenditure -1995 (WO),1997(WO) & 2001 (WO)

DIFFERENCES BETWEEN

Write back	Write off
1. Resorted for regularisation of the incorrect allocation to any Head or write back of provision in original Head.	1. Used when the Railway administration relinquishes its right of claim for one reason or other for an amount (after the same is incorporated into regular accounts)
2.The correct account head is debited and minus debit to that from which the charges are written back. Example: When the over aged coach (source of procurement is capital) is condemned, the original value of such asset i write back from the Capital as follows. CAPITAL - 2100  - Minus Debit  --   xxxxx        DRF - 2100  -  Debit              --   xxxxx	2. It mainly relates to bad debits such as irrecoverable amount of advance paid, loss of cash or stores due to theft, fraud or natural calamities, in efficient suspense balances, capital assets by amortisation etc.
3. It means to take reverse the original transaction i.e., write back for sufficient reason.	3. It means, a Debit balance in the books, but not possible to realise the same in future.   So Write off the same.

for article on Write Back adjustments

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Differences between Capital & Capital Fund

DIFFERENCES BETWEEN

CAPITAL	CAPITAL FUND
1. External source (given by Ministry of Finance)	1. Internal source ( Surplus available after paying Dividends and appropriating to DF, RSF )
2. Dividend to be paid on Capital provided by Ministry of Finance.	2. Dividend need not be paid, since it is a surplus after meeting all obligations of Railways.  On the other hand, Interest is credited to the Capital Fund on the balance of the Fund at the end of financial year.  (Rate of interest is equal to the Dividend rate and recommended by RCC from time to time)
3. Rules of allocation is prescribed in chapter V of Finance Code volume I.  They are a) cost of first construction b) Land c) Cost of construction of quarters.	3. No separate rules existing for utilizing this Fund usually charged to all Plan Heads (except Plan Heads 11 & 51).  However in current years, the Capital Fund is utilized for meeting the Plan Head 2200 - Principal component of lease charges payable to IRFC

Differences between IRCA & IRFA

Differences between IRCA & IRFA transactions

IRCA transactions	IRFA transactions
1. Expand : Indian Railway Conference Association.	1. Expand: Indian Railway Financial Adjustments.
2. Chargeable to : Demand No.09G-740-33	2. Chargeable to Demand No.09G-750-33
3. IRCA is authority for carrying out adjustments among all Zonal Railways.  Debits are raised by Northern Railway on other Zonal Railways based on the advice of IRCA.	3. Zonal Railways are responsible for raising charges on other Railways.
4. Pertaining to Goods Wagons only ( for Pakistan & Bangladesh Rly – All Rolling Stock)	4. Pertaining to Locos (Dsl & Electrical) & Coaches.
5.   A.Charges / Receipts relating to inter charged Stock (Goods wagons only) of Indian Railways-(i) Repairs, (ii) maintenance (iii) Depreciation                     B. Charges relating to Inter-change of all Rolling Stock with Foreign Railways(e.g. Pakistan and Bangla Desh Railways)	5..Will record the receipt / charges on account of adjustments carried out amongst Indian Govt. Railways on account of (i) Repairs, (ii) Maintenance and (iii) Depreciation in respect of rolling stock (other than goods wagons i.e., Locos & Coaches) of one Railway in use on other Railways.
6.Basis for calculation: Wagon balance is the net difference between the ownership and the actual holding of wagons of Zonal Railway.  On a particular day, if a particular Rly holds less number of wagons that it owns on a particular day, it is entitles to hire charges for balance of the Wagons.  Conversely the Rly holding more wagons that its own is liable to pay hire charges for the excess number of Wagons it holds.	6. Basis for calculation: (A) Locos : Debits will be passed on by the owning Railway to the using Railway at the unit cost based on the total engine hour on outage basis (i.e. from the time it leaves from the shed & till it returns to the shed) earned by the engines on the using Railway. (B) Coaches: The credit/debit adjustments should be worked out on the basis of kilometres earned by through rakes/passenger coaches running on more than one railway system. Vehicle kilometres in respect of through coaches should be worked out on the basis of the working time table periods and the rake links.

Note: Codal provisions in respect of IRCA & IRFA -Para 869 of Finance Code vol. One - Click for  Chapter 8th of Finance Code Volume One

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Differences between SD and PG

DIFFERENCES BETWEEN

Security Deposit (SD)	Performance Guarantee (PG)
1.       In token for the due fulfilment of the contract	1. In token for the purpose of successful performance by the Contractor to execute the work. Introduced in lieu of risk action procedure (contracts rescinded due to failure of contractors)
2.       EMD of successful tenderer will be retained as part S.D., balance will be recovered at the rate of 10% of the bill amount till the full Security Deposit is  recovered,	2.  Obtained from successful bidder after issuance of LOA, but within 60 days of issue of LOA. a)      Within30 days from LOA – No interest b)      31 to 60 days from LOA – penal Interest 15 % per annum
3.       Balance Security Deposit will be recovered only from the running bills of the  contract and no other mode of collecting SD shall be permitted	3.  Submit the Performance Guarantee in any of the forms i.e., Cash, Irrevocable Bank Guarantee, Govt securities, DDs of nationalized banks, Post office SB deposit, NSCs etc.
4.       There is no question of failing to submit the balance SD, because the same is recovered from running bills at the rate of 10% of bill amount till the full SD is recovered.	4.  In case the contractor fails to submit the requisite PG even after 60 days from the date of issue  of LOA, the contract shall be terminated duly forfeiting EMD and other dues, if any payable against that contract. The failed contractor shall be debarred from participating in re-tender for that work.
5.       Can be released subject to A)     Physical completion of the work and Maintenance period if any. B)      After passing Final Bill C)      Obtaining the No Claim certificate from the Contractor D)     Obtaining the No Dues certificate against   Contractor from the Executive	5.  Can be released immediately after physical completion of the work.

                Click here for article on PG

                              Performance Guarantee                          

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RITES

RITES

Click below for official website of RITES

https://ritesltd.com/

 

·         Incorporated in the year 1974 as a Public limited company under the Companies Act, 1956

·         Full form : Rail India Technical & Economic Service

·         A Government of India Enterprise under the aegis of Indian Railways. Hqrs: Gurgaon, Haryana

·         Multidisciplinary organization of Consultants, Engineers and Project Managers in transport & infrastructure sectors.

·         Offers comprehensive services from concept to commissioning of projects in Railways, Urban transport, Highways, bridges, renewable energy and export packages of rolling stock and railway related equipment.

·         RITES is the nominated agency of Indian Railways for export of rolling stock manufactured at the Production Units of Indian Railways.

·         A Mini Ratna Enterprise, Schedule A, an ISO 9001-2008 company

·         Operational experience of 43 years

·         Global presence -- extended its services in nearly 62 countries

·         Only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).

·         Integrated Check Posts  - RITES has completed these Posts at the borders of neighbouring countries in a first of its kind project in India.   These are the world-class facilities for passenger & cargo movement in similar to Airports. Examples:  Attari check post on India-Pakistan border, Petropole check post on Indo-Bangladesh border, Agartala check post on Indo-Myanmar border.

·         SAIL RITES Bengal Wagon Industry Pvt. Ltd - Joint venture of RITES & SAIL - with the object of setting up of State-of-the-art Wagon factory at Kulti, West Bengal   - Assured off-take by Indian Railways for manufacture of 1200 high end specialized wagons and rehabilitation of 300 wagons per year.

·         Financials -2016-17

v  Profit after tax - 331 Crores

v  Rs.10.34 lakhs  - Profit per employee  (Total employees -3200)

v  Total Income 1509 Crores

v  Share Capital -200 Crores

v  Profit after tax to Share Capital  -  166 %

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Alert - Appendix 3 Examination

Appendix 3 Exam, 2018 notification is likely to be announced by Railway Board in due course.  Be alert, dust off  the books and start preparation.  Early bird catches the worm. 

Note: Heard it through the grapevine. No inquiries please. If announced, the notification is available in the below link.

Accounts Directorate of Railway Board

RLDA - Rail Land Development Authority

RLDA

• RLDA - Rail Land Development Authority

• Setup in the year 2006 as a Statutory Authority under the Ministry of Railways

• VISION:  To emerge as India's leading Public Land Development Authority.

• Object behind the set up of RLDA

1.     The need for considerable increase in internal generation of resources for such investment had been realized by the Indian Railways for some time.

2.    Indian Railways is the biggest landlord in India having nearly 10.65 Lakh acres across all over the country.

3.     Out of 10.65 lakh acres, 9.50 Lakh acres are using by the Railways for operational purpose.  Balance 1.15 Lakh acres are vacant and susceptible for encroachments.

4.     Generation of Non-tariff revenue by development of 1.15 Lakh acres of vacant land for commercial purposes

5.      Creation of Infrastructure assets for Indian Railways.

• Member, Engineering, Railway Board is the Ex-officio Chairman of the RLDA.

•  RLDA’s expenses are met out of grants provided by Indian Railways. The entire earnings generated from development of railway land is transferred by RLDA to Indian Railways.
• Earnings of RLDA for the last 3 years (2009-10, 10-11 & 11-12) are Rs.2500 Crores. 

• There is a scope of big jump in the earnings of RLDA, since many sites and MFC's will be come into function.

• Authorisation of vacant land to RLDA - stages

1.     Land which is not required for operational purposes in the foreseeable future - identified by the Zonal Railways.

2.      Once identified, the details of such vacant land would be advised to Rly. Board.

3.     Such plots of land would thereafter be entrusted to RLDA by Railway Board in phases for commercial Development.

      

·         Commercial development of vacant railway land  -  steps:

1.      Inspection of the sites to ensure that these are free from any encumbrances/encroachments and are prima-facie suitable for commercial development.

2.    Survey done for each individual plot of land by engaging a reputed real estate consultant to identify the possibility of commercial development.

3.     Once identified potential revenue from such site, call for an EOI - Expression of Interest or RFP - Request For Proposal from Developers for commercial development through the PPP route ( Public Private Partnership)

4.    Awarded the site to the Developer through Open Bidding process.

·         .  Identified 138 sites so far and they are at different stages for development as

         Commercial places.

• M F C - MULTI FUNCTIONAL COMPLEX:

• Apart from development of vacant Railway land on commercial lines, Railways planned to utilise AIR SPACE over Railway Assets such as Railway Stations for generation of Non-tariff Revenue.

• MFC's will provide facilities like Shopping, Food stalls/Restaurants, Book stalls, PCO Booths, ATMs, Budget Hotels, Parking spaces etc at Railway stations.

• MFC's will given to PSUs i.e., RVNL, IRCON , RITES (through MOU - Memorandum Of Understanding) and to Private players (through Open bidding process)  - Lease basis on upfront lease premium or Revenue sharing for a period of 30 to 45 years.

•  After the lease period, MFCs would be transferred to the railways. Thus good opportunity for Railways in regard to creation of infrastructure assets.

• So far sanctioned 163 MFCs, redevelopment of 5 Railway Stations and 14 Railway Colonies.

•  Real estate consultants like Knight Frank and JLL are advising RLDA in planning and marketing the MFCs sites. 

·         Several leading brands, retail, hotel chains and developers have expressed their interest in MFCs being developed by RLDA and prominent among them are Pantaloon, Cafe Coffee Day, The Loot, Woodland, Apodis Hospitality, Krishnan Palace Residency, WH Smith (Travel News Services).

·         MFCs at 26 railway stations developed jointly with IRCON ISL (Infrastructure & Services Ltd)  and RITES have already been completed and are waiting for being leased out, prominent places being Haridwar, Udaipur,Raipur, Madurai, Allahabad, Jabalpur, Burdwan, Manmad, Guntur.

•  RLDA has prepared a plan for fast-tracking the development of 75 complexes in the current financial year 2013-14.

Development of Railway Stations

•  RLDA has also been entrusted by Ministry of Railways for development of five railway stations at Chandigarh, Anand Vihar (Delhi), Bijwasan (Delhi), Habibganj (Bhopal) and Shivajinagar (Pune) into modern railway stations with excellent facilities for rail users. 

• These stations are being developed through IRSDC - Indian Railway Stations Development Corporation Ltd., a joint venture company created by IRCON and RLDA in which the former is the majority partner.

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