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Designed to help the candidates appearing the Appendix 3, LDCE, 70% etc of Railway Accounts
Tuesday, April 14, 2020
Monday, April 13, 2020
Material Management - 2018-19
Material Management - 2018-19
Source: Year Book 2018-19
· Total purchases - Rs. 62,134 Crores
Procured by |
% |
Zonal Rlys &
PUs |
63 |
Railway Board |
36 |
Others |
1 |
·
Total Number of
Depots - 262
·
Total Number of
items stocked - 1.3 Lakh
·
Scrap Sales - Rs.
4192 Crores
· E-Procurement started in the year 2010-11
· Single Web portal IREPS - Indian Railways Electronic Procurement System - for Goods, Services, Works, Earning, Leasing & Sale of Scrap
·
IREPS - आपूर्ति -
(Apoorthi) Android app - enables access
to useful information at one go.
· System of Lot Publishing, instead of traditional catalogue publishing, has been rolled out for re-Auction in January, 2019. This has made paradigm shift in the method of disseminating information pertaining to the available scrap for sale to prospective bidders in a transparent manner.
· Common use Goods and Services available on GeM are reserved for procurement through GeM portal ( Government E Marketplace
Turn Over Ratio - TOR
· Meaning: Ratio of Stores Balances at the end of financial year to Total issues during the year.
· Formulae = Stores Balances as on 31st March/Total Issues during the year x 100
· Stores Balances = Stores in stock + Stores in Transit + Purchase Suspense + Sales Suspense + Stores Adjustment Account
·
Calculated
separately with fuel and without fuel
· Expressed in Percentages
TOR |
2014-15 |
2017-18 |
2018-19 |
Without Fuel |
15 |
10 |
9 |
With Fuel |
- |
8 |
6 |
****
Saturday, April 11, 2020
Helicopter money
Heritage Rolling Stock
Friday, April 10, 2020
Estimates and Verification of Estimates - Engineering Code
Estimates
Most important question
· 7th Chapter of Engineering Code - 7 Kinds of Estimates
· Estimate meaning: To form an approximate judgment regarding cost of the work or Calculate the approximate cost of the work.
· Estimates required for :
v Construction or Purchase of new works or Assets
v Renewals & replacements of existing works or assets
v Scrapping or dismantling or abandonment of existing works or assets
v Reconditioning of existing works or assets
v Repair works
v Temporary & experimental works
v Renewals & replacement of worked lines
v Renewals of Ballast
·
Estimates not
required for
Recondition works |
Renewal works (Revenue) |
Repair works (Revenue) |
Up to Rs. 1 Lakh |
Up to Rs. 2 Lakhs |
Up to Rs. 5 Lakhs |
·
Currency of the
Sanction: 5 years ( 2 years, if work is not commenced)
·
Names of
Estimates - easy to remember - A D S R P C C
SN |
Estimate |
1 |
Abstract Estimate |
2 |
Detailed Estimate |
3 |
Supplementary Estimate |
4 |
Revised Estimate |
5 |
Project Abstract Estimate |
6 |
Construction Estimate |
7 |
Completion Estimate |
Open Line Works |
Construction Projects |
Remarks |
1. Abstract Estimate |
5. Project Abstract Estimate |
For obtaining Administrative approval |
2. Detailed Estimate |
6. Construction Estimate |
For obtaining Technical Sanction |
3. Supplementary Estimate |
Prepared both for Open Line Works & Construction Projects |
|
4. Revised Estimate |
Prepared both for Open Line Works & Construction Projects |
|
Nil |
7. Completion Estimate |
Stock taking Estimate for Construction Projects |
1.
Abstract Estimate: (for Open
Line Works)
·
Prepared to
obtain Administrative approval of the Competent Authority.
· To form a reasonable accurate idea of the probable expenditure and such other data
· Consists of A. Brief Report, B. Justification, C. Specifications & D. Funds required in Current year or not.
· Source of Finance is to be identified i.e., Capital, DRF, DF etc for different items.
·
Inclusion of item
in Works Programme/M&P Programme/RSP with Budget provision - Deemed to be
the administrative approval of the Abstract Estimate.
2.
Detailed Estimate: (for Open Line Works)
·
Prepared to
obtain Technical Sanction of the Competent Authority
· Prepared in sufficient detail
· Ensure that the cost should not exceed the Abstract Estimate.
· Work should commenced after the technical sanction of the Detailed Estimate and provision in the Budget
The sanction of the Competent Authority to the Detailed
Estimate of a work is called the " Technical
Sanction" |
Detailed Estimate of Open Line Works consists of |
|
Statement of Details of Estimated cost |
Outer sheet consists of Abstract cost of work, Report, financial Justification & Allocation |
·
If Administrative
approval and Technical sanction - both within powers of GM - Sanction for the both
can be accorded at the stage of Detailed Estimate, skipping the Abstract
Estimate.
3.
Supplementary Estimates: (for both Open Line works and Construction Project)
·
Two occasions:
A. An item of work which ought to have been included in the estimate already sanctioned, but has not been included.
B. An item of work, which it is found later, should be considered as being a part of an estimate already prepared and sanctioned.
· Prepared in the same form and same degree as the Main estimate
· All purposes, supplementary estimate be treated as a part of Main Estimate.
4.
Revised Estimate: (for both Open Line works and Construction Project)
· If the expenditure on a work likely to exceed the sanctioned one.
· Prepared and submitted for sanction of the Competent Authority
· Prepared in the same degree, same form like Original Estimate.
· Comparative statement showing excesses/savings under each sub head.
5.
Project Abstract Estimate (for
Construction works)
·
Prepared to
obtain the approval of Railway Board.
·
Prepared from an
Engineering Survey Report
· Accompanied by A. Narrative report explaining the salient features and major items of expenditure B. Detailed estimates prescribed under various heads.
6.
Construction Estimate: (for Construction works)
Detailed estimates of all works in the
Project are collectively known as " Construction Estimate" |
·
Prepared from the
Final Location survey report.
· Divided into convenient sections like engine runs, branch lines, junction arrangements, sections based on topography, divisions etc.
· In special cases work may commence by preparing the Part estimates for sub - works, before preparation of Construction estimate for whole Project . But the same (sub works) should not be redundant at the time of Project Construction estimate is prepared. Examples are A. Preliminary works B. Final Location survey C. Project office D. Land acquisition etc
7. Completion
Estimate:
·
Prepared in
supersession of a Construction Estimate
Also
called as Stock taking estimate |
· Shows in tabular form as shown below.
Amt of Sanctioned estimate |
Actual expenditure as on date |
Commitments as on that date |
Anticipated further outlay |
Total estimated cost |
Differences between sanctioned cost and the estimated cost |
1 |
2 |
3 |
4 |
5 (2+3+4) |
6 (6-1) |
·
Prepared with brief
explanations - Excesses - Rs. 10,000 or
10% which ever is less and Savings - Rs. 1 Lakh or 20% which ever is less
·
Prepared
- At the end of one of the first three financial half years after the
date of "opening"
Verification of Estimates
· Important phase of the Control of Expenditure
· Regular check by the Accounts Officer on all estimate before they are sanctioned by the Competent Authority.
· Object: To avoid irregular expenditure
Main Points - Easy to remember - P I B E C
Propriety of Expenditure |
Ensure expenditure charged to Railways is legitimate & proper. Ensured canons of financial propriety as enunciated in Para 116F. Proper financial justification. |
Incidence & classification of charges |
Incidence = Source of
Funds, Classification = Allocation as
per Finance Code volume II. Ensure both as per rules in force. while certifying the Estimate, Accounts
officer should clearly state that both have been verified. However, the estimate should
not be delayed if any doubt in allocation. In such cases estimate should
certify provisionally. |
Budget provision in current year |
Verified from the sanctioned
budget allotment for the year |
Errors & omissions - Freedom from |
Executive is responsible for
correctness of errors and omissions noted in the course of accounts
verification. If not done, a check note appended to the verification
certificate duly pointing out the
errors and omissions. |
Competency of Sanction |
As per MSOP - checked and
certified about the Competent authority empowered to sanction the estimate. |
Subsidiary points -
Easy to remember - P I C A D O R (means
Bullfighter)
Proper distribution between Cash & Stores |
Proper distribution is made of the estimated outlay between Cash
& Stores |
Incidental expenditure |
Incidental expenditure that can be foreseen has been provided in the estimate |
CRRM - Credit for Railway Released Material |
Provided CRRM in case of renewal, replacement or dismantlement of works |
Abstract Allocation of all items |
Abstract allocation for all items |
Departmental Charges for Deposit works |
Work done for other govt. depts or private parties, ensure provision of Departmental charges |
Outlay & Outturn - manufacturing operations |
Outlay & Outturn should be shown distinctly |
Rent Statements in case of Railway Quarters. |
Ensure 6 % return in case of each class of staff quarters & other rent returning buildings |
Friday, April 3, 2020
Wednesday, April 1, 2020
Cash Flow Statement - Management Accounting for LDCE
Cash Flow Statement - Management Accounting for LDCE
«
Meaning: A statement
which discloses the changes in Cash position between two periods (usually 31st
March of previous year to 31st March of current year)
« Example: A Balance sheet shows a cash balance as on 31.03.2019 at Rs. 5 lakhs, while the same position as on 31.03.2020 at Rs. 6 lakhs. That means cash inflows during the year 2019-20 is Rs.1 lakh.
« The statement also outlines the reasons for such cash inflows or cash outflows, which in turn helps to analyze the functioning of Business.
« It is an important tool in the hands of Business Management.
«
Components of Cash are 1. Cash on Hand 2.
Cash at Bank 3. Short term,
highly liquid investments that are readily convertible into cash.
Advantages:
1. Efficient in Cash Management - Helps how much cash will be available at a particular point of time to meet the day to day obligations.
2. Helps in internal financial management.
3. Discloses the movement of cash during the financial year. Understanding and analysis of what are the sources & applications of cash.
4. Past years cash flow statement is used as an estimate for next year's cash flow.
5. Shows the success / failure of cash management.
6. Comparison between two firms.
7. Analysis of relationship between profitability and net cash flow.
Limitations
1. Cash flow statement cannot serve the purpose of Profit and Loss Account. Because later covers both cash items and non cash items, whereas former covers only cash items.
2. Cash flow statement can't replace the Fund flow statement. The later one is reflecting the complete financial picture than the former one.
3. Cash balance as per Cash flow statement cannot represent the real liquid position of the firm, because of postponing of purchases & other payments.
4. Very difficult to define the term "Cash". whether the items like cheques, stamps, postal orders etc are comes under purview of cash or not.
()()()()()()
Working Capital Management Accounting for LDCE
Working Capital Management
Accounting for LDCE
1991 LDCE SCR - 5 marks
ü
Meaning: Represents the amount of funds required to
finance " the day to day activities".
ü Excess of Current Assets over Current Liabilities.
ü It should be ideal/sufficient. That means neither more nor less to the correct requirements of working capital.
ü Shortage - Difficult to manage day to day activities/payments.
ü Surplus - Capital will be blocked / unutilized.
ü So it should be sufficient to meet current obligations ( not long term obligations)
ü The difference between Gross Working Capital and Net Working Capital is "Current Liabilities". Total sum of all current assets is called Gross Working Capital. The difference between Current Assets & Current Liabilities is called Net Working capital.
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