Railway Accounts Department Examinations

Sunday, September 9, 2018

Railway Convention Committee (An Important Short Notes question)




RAILWAY CONVENTION COMMITTEE     - R C C

1988,1992,1995 (with out Books) & 1987,1990 (with Books)  - short notes

       Þ       is an ad hoc Parliamentary committee constituted from time to time on Resolution adopted by Lok Sabha and concurred in by Rajya Sabha.

       Þ       The appointment and functions of Railway Convention Committee is a part of Parliamentary control over Indian Railway Finances.

       Þ       Composition of RCC - 12 members from Lok Sabha nominated by Speaker and 6 Members from Rajya Sabha nominated by Chairman.

       Þ       The Chairman of the Committee is appointed by the Speaker from amongst the members of the Committee.

      
       Þ       After Independence, first RCC constituted in the year 1949. Since then, each Lok Sabha has been having a Railway Convention Committee.

       Þ        The Committee becomes functus officio after presenting its final Report regarding rate of dividend payable to General Revenues.

       Þ       The Report of the Committee on the Rate of Dividend is considered by the House on a Resolution moved by the Minister of Railways.

       Þ       After a Report has been presented to the House, the Ministry of Railways and other concerned Ministries are required to take action on various observations and recommendations contained in the Report. The replies of the Government are examined and an ATR- Action Taken Report is then presented to the House.

       Þ       is formed once in five years (normally with the formation of New Loksabha)

       Þ       Its rules generally applicable for a period of five years.


       Þ       R C C recommends on the following aspects:

ü Rate of Dividend payable to the General Revenues. (This may not require now, due to merger of Railway Budget with General Budget)

ü Appropriation to the D.R.F.

ü Modification of rules of expenditure allocation between Capital and Revenue.

ü How Rly Surplus (after the payment of Dividend) should be distributed among various Railway Funds.

ü To introduce flexibility in the administration of the Railway finances.

ü Accounting matters and aspects of Management practices on Railways.

ü Express views on Rolling Stock Production and any short earnings and how the same should be overcome.


ü And any other subject matter brought to its notice by the Minister of Railways.

                                   *&*&*&*&

Audit Objections and Draft Para - Very important question

Handwriting - Importance

Handwriting - Importance

ü  You will get additional five marks, if your handwriting is legible.  Conversely  you will lose five marks, if your handwriting is illegible.

ü  Though the hand-written letter, note or document is fast becoming a thing of past due to computers and emails, still handwriting is more important in the descriptive examinations like Appendix3A examination, LDCE etc

ü  For candidates appearing Appendix3A examination, LDCE etc., there is no need to explain again and again the importance of good handwriting in the examinations.

ü  National Handwriting day - January, 23rd . 

ü  The average human being hand-writes at 31 words per minute for memorized text and 22 words per minute while copying.

ü  Check your speed by using stopwatch and improves your speed if it falls below average.

ü  Put efforts sincerely for getting good handwriting skills along with speed writing.

ü  Browse internet for easy tips on practicing good handwriting skills or contact Shri Y.Mallikarjuna Rao, Founder & Director, National Handwriting Academy, Hyderabad. His email is handwriting56@gmail.com or mobile 09849546608 or browse the below given website link.




                                                                                               
                                                                    ALL THE BEST





RSF-Railway Safety Fund - Source of Finance

   RSF-Railway Safety Fund


Ø  OBJECT:   (1) Conversion of unmanned level crossings into manned level crossings and (2) Conversion of busy manned level crossings into Grade Separator i.e., ROBRoad Over Bridge/RUB-Road Under Bridge,/FOB-Foot Over Bridge/Sub-way.

Ø Since inception of Railways, there has been policy to provide unmanned level crossings where Train Vehicle Units (TVU) are low and manned if expected TVU is on higher side. 

  •  Road Over Bridge can be build over level crossings with Train Vehicle Unit (TVU) more than one lakh provided state government or local body is agreed to share 50 percent cost of the project.

ØAs on date (30.07.2016), Indian Railways have 28607 level crossings out of which,19267 (67 %) are manned and balance 9340 (33%) are unmanned. These unmanned level crossings account for maximum number of consequential train accidents.

                At present Indian Railways has deployed "Gate Mitras" (Gate counsellors) at unmanned Level Crossings on contract basis to avoid casualties.


Ø RSF created w.e.f 01st April, 2001

Ø created based on the recommendations of RCC - Railway Convention Committee, 1999.

Ø It is Non-Interest bearing Fund.

Ø SOURCES:   1.   Surplus after meeting the dividend liability in Railway Revenues.  2. Transfer of funds from CRF - Central Road Fund (12.5 % of CRF - to Railways) by the Central Government.  3. The present contribution 20 % out of the Dividends payable to RSWF - Railway Safety Works fund (operated in the books of Ministry of Finance)

Ø New Plan Head 2900 - for conversion of unmanned level crossings into manned level crossings.

Ø New Plan head 3000 - construction of ROB/RUBs in place of manned level crossings.

SRSF-Special Railway Safety Fund (Closed in year 2008)


ü  Object:   To wipe out the accumulated arrears of renewal of over-aged assets,  especially safety related ones i.e., tracks, bridges, signaling gears and Rolling stock. 

ü  SRSF has been created w.e.f   1st April, 2001  and  closed  from 1st April, 2008.

ü On closing, the balance in SRSF  Rs.597.73 Crores transferred to DRF - Depreciation Reserve Fund.

ü It is Non-lapsable and Non-Interest  bearing Fund.

ü Sources: created with an amount of Rs.17,000 Crores.  Out of this, Rs.12,000 Crores recd. from Finance Ministry in the form of Dividend Free Capital and Rs.5,000 Crores raised through by levying Safety surcharge on Passenger fares w.e.f. 01.10.2001.

ü The Safety surcharge on Passenger fares was discontinued w.e.f 01.04.2007, but subsumed in passenger fares "ON AS IS WHERE IS BASIS" and renamed as Development Fund to the DFC - Dedicated Freight Corridor.

ü carved out of the recommendations of "Railway Safety Review Committee" headed by Justice H.R.Khanna, Retd. Supreme Court Judge in the year 1998.

ü GREEN BOOK -  All SRSF works sanctioned are incorporated in the Book named as GREEN BOOK.



ü Progress/Results of creation of SRSF are mentioned below.

Renewal of
Target
Achieved
Percentage
Tracks
16538 Kms
15624 Kms
94 %
Bridges
2286 Nos
2191 Nos
96 %
Signaling gears
1448 stations
1282 stations
89 %

  •  With sustained efforts in the last decade, Indian Railways have reduced the number of accidents per million train kilometers from 0.44 in 2003-04 to 0.13 in 2012-13.
ü  The creation of Second SRSF with an proposed amount of Rs.40,000 Crores is on the news.

ü So it is best time for contemplation as "Is it require SRSF's to the Indian Railways ?"   .  The simple answer is NO, as long as provide sufficient amounts to DRF - Depreciation Reserve Fund for replacement of Railway assets.

ü  Let us observe CAG remarks on SRSF  (CAG report on Railway finances of 2009-10 year)

ü  "Railways need to maintain a reserve with a minimum amount under DRF
accumulation to facilitate the timely execution of renewals with a view to
maintain the assets at the highest standard of efficiency. Accumulation of
arrears in renewal/replacement may at later stage create a need to set up
another fund (as done in the year 2001 when Special Railway Safety Fund was created) to wipe out the arrears of renewal/replacement.



Saturday, September 1, 2018

Codes - Must for preparation of Appendix III (IREM) exam.


Remember, the entire examination of Appendix III (IREM) exam is based on the Indian Railways Codes on different subjects, manuals and other circulars issued by Railway Board from time to time.  Hence I request all the candidates to refer to all the Codes, especially Accounts Code, Finance Code & Engineering Code & other Codes. After that refer the guides/study material for further grasping of the subjects.


Accounts Code Volume 1

Accounts Code Volume 2 (Traffic Accounts)

Finance Code Volume 1

Finance code Volume 2 (Allocations/Classifications)

Engineering Code

Allocations/Classification of accounts - various practicals given in previous question papers of Appendix III (IREM) exam.


Practicals - Allocations/Classification examples - Previous year question papers

Click below

Allocations - Practicals


Note:

1.These allocations along with answers are contributed by Smt. Chaitali Dasgupta, SSO(A)/Gauhati.  I conveyed thanks to her behalf of all the candidates

2. The veracity/correctness of the allocations may please be checked with the help of given Finance Code Volume II through the link given below.  If at all any corrections, the same may please be brought to the notice of me.  So that the same will be corrected and published.

Finance Code Volume 2

COE - Control Over Expenditure in Indian Railways - Important question for Expenditure paper

OLWR - No more a Source of Finance in Indian Railways


  • Board(FC) has approved abolition of Allocation Head - OLWR - Open Line Works (Revenue). 
  • Existing work if any under OLWR, the same may be transferred to DRF or DF as the case may be.
  • As Such there is no allotment of Grant under OLWR in Demand NO.16 from the year 2015-16 onwards.

  • Necessary correction slip to the Accounts Code will be issued on receipt of approval from CGA - Controller General of Accounts and C&AG- Comptroller and Auditor General of India. 
  • Reason: Insignificant expenditure under OLWR in Annual Plan of Works Expenditure.  For example in the year 2013-14 -  Rs.28 Crores expenditure under OLWR against huge Budget under Demand No. 16 (approximately around 63,000 Crores)
      Click here for the Railway Board letter on the above subject 


Allocations - Titbits


Note:

1)   Due to merger of Rly.Budget with General Budget, all Demands 3 to 13 are now subsumed into Single Demand No.80 - Ministry of Railways.  The erstwhile Demands 3 to 13 are now named as Sub Major Heads (SMH) 01 to 11 under Major Head 3002 - Indian Railways Working Expenses (Commercial Lines) respectively. 

2)   Description of Demand/Minor Head/Sub Head/Detailed Head is given for the purpose of understanding.  Need not be furnished in answer sheets.

3)   Sub Head is not asked, yet furnished herein for perusal.

4)   For attempting these type of Allocation questions, hard copy of Finance Code Volume 2 (F2) is must for preparation.  Click for F2


Allocations / Classifications  - TITBITS

  • In view of Swach Bharat campaign, the following activities are more important -
  •  08 Demand - Operating Expenses - Rolling Stock & Equipement (08-593) -Expenditure on OBHS- On Board Housekeeping services, CTS -Clean Train Station Scheme, Mechanical coach Cleaning, pest & rodent control treatment or any other activity of coach sanitation.
(Authority: Board's letter no.2014/AC-II/2/2 dated 16.10.2014)�acs no.118 . To view letter - click here
http://www.indianrailways.gov.in/railwayboard/uploads/directorate/accounts/downloads/circular/Compendium_2014/34%20(a).pdf


Ø Single Demand i.e., Demand No. 12 for two abstracts -  One is Abstract –K for Misc.Working Expenses and another is Abstract –N for Suspense.

Ø Demand No. 03 – General Superintendence and Services  - It covers all Officers and Administrative staff of all departments in GM’s Offices as well as DRM’s offices. 

 Exceptions: 1) CCO- Chief Claims Officer and his establishment - allocated to Demand No.12- Misc Working Expenses.    2) CSC – Chief Security Commissioner or DSC – Divisional Security Commissioner and their establishments – allocated to Demand No.12 – Misc Working Expenses..   3) CMD – Chief Medical Director or Sr.DMO – Sr.Divisional Medical Officer and their establishments – allocated to Demand No.11 – Staff Welfare and Amenities.

Ø The Repairs and Maintenance of Plant & Equipment of all Departments – charged to Demand No.7 – Repairs & Maintenance of Plant and Equipments

Ø Payment of compensation claims – Demand No. 12 – Misc Working Expenses

Ø Court fees and other legal expenses – Demand No. 03 – General Superintendence & Services.  ( 03-164)

Ø Expenditure on Sports & Cultural activities and connected establishment – Demand No. 03 - General Superintendence & Services. ( 03-330)

Ø Conservancy of Rivers  -  Demand No. 04 – Repairs & Maintenance of P.Way & works.

Ø Planting  & upkeep of trees along Railway lines, Station gardens, Staff colonies   - Demand No. 04 – Repairs and Maintenance of P.Way & Works.

Ø Consumable items such as lubricants, carbon brushes, lamps, bolts etc used for coaches/wagons ( by Divisions in Open Line)-  Demand No. 08- Operating Expenses - Rolling Stock.  If the same were used in Workshops, allocated to Demand No. 06- Repairs & Maintenance of Carriages & Wagons.

Ø Repairs to watches, clocks, time recorders, stop watches ( in stations, offices etc)  - Demand No. 07 – Repairs & Maintenance of Plant and Equipments.  Why because all these items are treated as tools & plants as per Railway’s Lingo/jargon.

Ø Payment of Lease charges (of IRFC, etc) – Demand No. 09 – Operating Expenses (Traffic).  Only Interest portion charged to Demand No. 09. The Principal portion of Lease charges should be charged to Plan Head 2200 – Leased Assets under Demand No.16

Ø Demand No. 16 -Plan Head 1300- Restoration of Dismantled lines – abolished by Railway Board recently.   

CLASSIFICATION OF REVENUE EXPENDITURE

Category
Group

Erstwhile Demand
No.

Abstract
Name of demand
I.
Policy Formulation and Services Common to all Railways
1.

Railway Board
2.

Miscellaneous Expenditure (General)
II.
General Superintendence and Services on Railways
3.
A
General Superintendence and Services on Railways.

III.

Repairs and Maintenance

4.
B
Repairs and Maintenance of Permanent Way and Works.
5.
C
Repairs and Maintenance of Motive Power.
6
D
Repairs and Maintenance of Carriages and Wagons.
7
E
Repairs and Maintenance of plant and Equipment

IV.

Operation

8.
F
Operating Expenses-Rolling Stock and Equipment.
9.
G
Operating Expenses-Traffic.
10.
H
Operating Expenses-Fuel.

V.

Staff Welfare, Retirement Benefits and Miscellaneous
11.
J
Staff Welfare and Amenities.
12.
K & N
Miscellaneous Working Expenses and Suspense
13.
L
Provident Fund, Pension and other Retirement Benefits.

VI.

Railway Funds and payment to General Revenues.

14.
M
Appropriation to Funds.
15.

Dividend to General Revenues, Repayment of loans taken from General Revenues and Amortization of over Capitalisation.

Note: Abstracts A to L are arranged serially to Erstwhile Demands No. 03 to 13 ( Except Abstract I )

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PPTs ( Power Point Presentations) on Railways study material

for view of PPTs (Power Point Presentations) on different Railway Subjects 
Click below


Tuesday, August 28, 2018

ENGINEERING CODE (Railways) - IMPORTANT CHAPTERS

ENGINEERING CODE (Railways) - IMPORTANT CHAPTERS

One must be cover up the entire Engineering Code i.e., all chapters for attempting the optional General Expenditure Paper and GRP - General Rules & Procedures.  However, among the total 19 chapters, the following Nine chapters are more important and for quick revision.


Chapter No
Contents
Click the given LINK for ready access
1
Organisation & Administration
6
Investment Planning & Works Budget
7
Estimates
11
Execution of works
12
Contracts for Works
13
Initial Records
14
Initial Account of Revenue & Works Expenditure
15
Expenditure & Budgetary Control
17
Completion of Railway Projects


                                       ~!@#$%^&*()_+\