Railway Accounts Department Examinations

Saturday, April 20, 2019

Performance Guarantee


Performance Guarantee
(as per GCC 2018)  Click here
Ø   Introduced in lieu of risk action procedure (contracts rescinded due to failure of contractors)

Ø The successful bidder shall have to submit the Performance Guarantee - 5%  of the Contract value

Ø    Time limit: within 21 days from the date of issue of Letter Of Acceptance (LOA).

Ø    Extension of Time limit: Beyond 21 days and up to 60 days from LOA by the Authority who is competent to sign the contract agreement.

Ø    Penal interest of 12% per annum  - beyond 21 days, i.e. from 22nd  day after the date of issue of LOA.

Ø    If 60th day happens to be a declared holiday in the concerned Railway office, submission of PG can be accepted on the next working day.

Ø    PG shall be valid up to the Date of completion of the work plus 60 days.  In case the completion time extended, the validity of PG extended to cover such extension plus 60 days.

Ø    If contractor fails to submit PG,

A.    the contract shall be terminated

B.     b)  forfeiting EMD and other dues, if any payable against that contract. and

C.      c) the failed contractor shall be debarred from participating in re-tender for that work.

Ø    After work started, whenever the contract is rescinded or withdrawn,
A.  the security deposit shall be forfeited
B.   the Performance Guarantee shall be encashed and
C.    the balance work shall be got done independently without risk and cost of the failed contractor.  (This is the main objective of introducing the Performance Guarantee procedure. Before that, the balance work is to be carried out by inviting fresh tenders and if any higher charges on account of the fresh tender, the same is at the risk and cost of failed contractors)
D.  The failed contractor shall be debarred from participating in the tender for executing the balance work.

Ø    Variations to the value of Contract - PG

A.   Up to 25 %  increase of original contract value - No additional PG.
B.   Beyond 25 % increase of original contract value - Additional
5 % PG for the excess value over the original contract value shall be deposited by the contractor.
C.   If the value of contract decreases by 25% of original contract value , PG amounting to 5% of decrease in the contract value shall be returned to the Contractor on the basis of his request.

Ø    The Performance Guarantee (PG) shall be released after physical completion of the work based on 'Completion Certificate' issued by the competent authority .

Ø    The Security Deposit shall, however, be released only after expiry of the maintenance period and after passing the final bill based on 'No Claim Certificate' from the contractor.

Performance Guarantee - various forms for submission

(i)     A deposit of Cash;
(ii)    Irrevocable Bank Guarantee;
(iii)   Government Securities including State Loan Bonds at 5% below the market value;
(iv)   Deposit Receipts, Pay Orders, Demand Drafts and Guarantee Bonds. These forms of Performance Guarantee could be either of the State Bank of India or of any of the Nationalized Banks;
(v)    Guarantee Bonds executed or Deposits Receipts tendered by all Scheduled Banks;
(vi)   A Deposit in the Post Office Saving Bank;
(vii)  A Deposit in the National Savings Certificates;
(viii) Twelve years National Defence Certificates;
(ix)   Ten years Defence Deposits;
(x)    National Defence Bonds and
(xi)   Unit Trust Certificates at 5% below market value or at the face value whichever is less.
(xii) Also, FDR in favour of FA&CAO (free from any encumbrance) may be accepted.
((((((((())))))))



Wednesday, April 17, 2019

Cash Imprest


Cash Imprest

Authority: 1) Para No.1050 of Indian Railways Finance Code Volume 1
                     2) ACS No.83 vide Railway Board Letter No.2016/F(X)II/10/27 dated 13.03.2018
                   3) Item No.1 (A) of Part C of Model SOP (Schedule of Powers)

·         What is the meaning of Imprest in general ?  A sum of money advanced to a person for a particular purpose or  A fund used by a business for small items of expenditure and restored to a fixed amount periodically (say one month)
·          
·         Definition of Cash Imprest by Railways is “ An Imprest is standing advance of a fixed sum of money placed at the disposal of an Individual (Officer or Supervisor) to meet the following types of expenditure.

1.       Petty Office expenses
2.       Cost of raw materials for the diet of Indoor patients of Hospitals
3.       Emergent charges which cannot be foreseen
4.       Other petty expenses up to an amount of Rs. 15,000 /- in each case subject to a certificate recorded by procuring official/Imprest holder in the format given below.
“I am personally satisfied that these goods are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price 
·         GM has full powers in respect of sanctioning cash imprest to the Officers & Supervisors.

·         As per Model SOP, PHOD, HOD, DRM, ADRM,CWM & SAG officers in field units have full powers to sanction the Cash Imprest to the Officers & Supervisors.

·         Finance concurrence is required for fixing the Cash Imprest amount.

·         Cash imprest amount to be created purely on the need basis.

·         Cash Imprest amount to be reviewed periodically.

·         The amount of an Imprest must not be larger than is absolutely necessary.

·         It should be reckoned at the lowest possible figure calculated to suffice for meeting the office expenses.

·         Total amount of expenditure through cash imprest should not be exceeded the Budget grant for the purpose during the year.

·         The Cash Imprest holder may sanction emergent petty advances out of Imprest money placed at his disposal. ( that is Mini cash Imprest out of Cash Imprest sanctioned to the Officer/Supervisor)

%%%%



Wednesday, April 10, 2019

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)

&&&&

Wednesday, March 20, 2019

LDCE - MULTIPLE CHOICE QUESTIONS


Salient features of LDCE/70% Selection -  Objective type questions


70% Selection

·         Applicable to all Departments, except Accounts.  Separate instructions for similar pattern in Accounts Dept will follow.

·         100 % -MCQ -Multiple Choice Questions  - Selections -70% exam - 100 marks

·         100 marks consists of

1.       70 Marks - Technical subjects & Official Language

2.       30 Marks - Establishment and Financial Rules

·         Qualifying marks - 60

·         Non -safety categories - Best among failure scheme for SC/ST candidates - will continue

30% LDCE
·         Two stages

1.       Pre-qualifying exam

A.      Multiple choice questions -100 Marks (Technical subject -40 marks, General Knowledge & Official Language-30 Marks & Establishment & Financial Rules -30 marks)

B.      Qualifying Marks -75 (No of candidates should be restricted to 5 times the number of vacancies)

C.      For SC/ST candidates - Qualifying Marks  -45 ( 3/5th of the  qualifying marks 75) -Non Safety categories

D.      Negative Marks - 1/3rd of marks for wrong answer

2.       Main Examination

A.      One Descriptive paper

B.      Profession subject only

C.      Total Marks -100

D.      Qualifying Marks - 60

E.       For SC/ST candidates - Qualifying Marks  -36 ( 3/5th of the qualifying marks 60) -Non Safety categories
****




LDCE - MULTIPLE CHOICE QUESTIONS -OBJECTIVE TYPE

Railway Board letter 

Click here


Salient features of LDCE/70% Selection -  Objective type questions

70% Selection
·         Applicable to all Departments, except Accounts.  Separate instructions for similar pattern in Accounts Dept will follow.

·         100 % -MCQ -Multiple Choice Questions  - Selections -70% exam - 100 marks

·         100 marks consists of

1.       70 Marks - Technical subjects & Official Language

2.       30 Marks - Establishment and Financial Rules

·         Qualifying marks - 60

·         Non -safety categories - Best among failure scheme for SC/ST candidates - will continue

30% LDCE
·         Two stages

1.       Pre-qualifying exam

A.      Multiple choice questions -100 Marks (Technical subject -40 marks, General Knowledge & Official Language-30 Marks & Establishment & Financial Rules -30 marks)

B.      Qualifying Marks -75 (No of candidates should be restricted to 5 times the number of vacancies)

C.      For SC/ST candidates - Qualifying Marks  -45 ( 3/5th of the qualifying marks) -Non Safety categories

D.      Negative Marks - 1/3rd of marks for wrong answer

2.       Main Examination

A.      One Descriptive paper

B.      Profession subject only

C.      Total Marks -100

D.      Qualifying Marks - 60

E.       For SC/ST candidates - Qualifying Marks  -36 ( 3/5th of the qualifying marks) -Non Safety categories
****

 



Monday, March 18, 2019

EMD – Earnest Money Deposit (as per GCC for Works – Nov, 2018)


EMD – Earnest Money Deposit
(as per GCC for Works – Nov, 2018)

ü  Earnest means – Showing sincere interest/serious in participating the Tender process, if awarded executing the Work for Organizations like Indian Railways.

ü  EMD – Earnest Money Deposit – means an earnest payment as specific form of Deposit to demonstrate that the applicant is serious/sincere to participate the Tender work and complete the work for orgnisations like Indian Railways, if awarded.

ü  EMD Rates are as follows.

Value of the Work
EMD Amount ( Rounded to a nearest Rs.100)
Up to Rs.1 Crore
2 % of value of the work
Beyond Rs. 1 Crore
Rs. 2 lakhs + 0.5 % of the excess of the estimated
cost of work beyond Rs.1 Crore

ü  Maximum EMD is Rs. One Crore only.

Examples for calculation of EMD under different circumstances: -
=======================================================
1.       Value of Work  - Rs. 25,60,520

2 % of Rs.25,60,520  - Rs. 51,210

Answer is Rs. 51,200 /- (Rounded off to a nearest Rs.100)
                 =======================================================
2.       Value of Work  - Rs. 4,00,00,000 ( Rs. Four Crores)

First one Crore
Rs.2,00,000 (Rs. Two Lakhs)
One Crore to Four Crore ( 3 Crores)
Rs.3 Crores x 0.5 % = Rs. 1,50,000 (Rs.1.5 Lakhs)
For Value of Rs.4 Crores
Rs.2 Lakhs plus Rs.1.5 Lakhs = Rs.3.5 Lakhs

                 =======================================================
3.       Value of Work  - Rs. Two Hundred Crores

First one Crore
Rs.2,00,000 (Rs. Two Lakhs)
One Crore to Two Hundred Crore ( 199 Crores)
Rs.199 Crores x 0.5 % = Rs.99,50,000
For Value of Rs.200 Crores
Rs.2,00,000 plus Rs.99,50,000 = Rs.1,01,50,000.  However maximum EMD is Rs.1 Crore.  So EMD is Rs.1,00,00,000/- ( Not Rs.1,01,50,000)

                 =======================================================
ü  EMD is applicable to all modes of Tenders such as Open, Limited, Single etc.

ü  Exemption for Submission of EMD – Firms recognized as “STARTUPS” by DIPP (Dept of Industrial Policy & Promotion.

ü  EMD of Successful Tenderer – Retained as part of Security Deposit.  But Railway shall return the EMD, if a Successful Tenderer submit “Term Deposit Receipt (TDR) / Bank Guarantee Bond towards the Full Security Deposit.

ü  EMD shall be deposited in Cash (through E-Payment Gateway) or as mentioned in Tender documents.

ü  EMD of unsuccessful Tenderers – Returned to them. But Railway is not liable to pay the depreciated value, if any or any interest on EMD.

ü  Forfeit of EMD:

1.       If the successful tenderer unable to submit the PG – Performance Guarantee within validity of time, or
2.       If the successful Tenderer resile/abandon from his offer, Or
3.       Modify the terms and conditions there of in a manner not acceptable to the Railways.
&&&&&&