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Indian Railways
1 | ICAI Accounting Research Foundation
Roll Out
Accounting
Railways
Scope Evaluation
Indian Railways - Comprehensive Scope Evaluation Report
2017
ICAI Accounting Research Foundation
Out of Accrual
Accounting over Indian
Railways - Comprehensive
Evaluation Report
(CSER)
Comprehensive Scope Evaluation Report
Accrual
Indian
Comprehensive
Report
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Indian Railways - Comprehensive Scope Evaluation Report
2017
ICAI Accounting Research Foundation (ICAI ARF)
TABLE OF CONTANTS .................................................................................................... 2
1 Introduction ....................................................................................................................... 1
1.1 Project Background .....................................................................................................................1
1.2 Understanding of Accrual Accounting System ..............................................................................1
1.3 Introduction to Comprehensive Scope Evaluation Report (CSER) .................................................3
1.4 Structure of the CSER ...................................................................................................................4
2 Approach and Methodology ............................................................................................... 6
2.1 Team for the Assignment .............................................................................................................8
2.2 Approach & Methodology............................................................................................................9
2.3 Tasks to be performed by Unit Teams of ICAI ARF: ..................................................................... 10
2.4 Tasks to be performed by Nodal Team of ICAI ARF: .................................................................... 10
2.5 Tasks to be performed by AR Team of Indian Railways: .............................................................. 11
3 Indian Railways–An Overview .......................................................................................... 12
3.1 Organization Structure............................................................................................................... 12
4 Understanding of Zonal Railway ....................................................................................... 13
4.1 Division ...................................................................................................................................... 13
4.1.1 Functions of Various Departments in a Division ....................................................................................... 15
4.1.2 Accounting System at Division Level ........................................................................................................ 19
4.1.3 Various Sections of Accounts Department in a Division: .......................................................................... 19
4.1.4 Management Information System (MIS) .................................................................................................. 21
4.1.5 General Understanding of Accounts Department .................................................................................... 22
4.1.6 General Process of Recording of Intra-Unit Transactions ........................................................................ 23
4.1.7 Use of Suspense heads ............................................................................................................................. 24
4.1.8 Auditing System ........................................................................................................................................ 27
4.1.9 Budgeting System ..................................................................................................................................... 28
4.1.10 Mapping of Current Process at Divisional Office.................................................................................. 29
4.2 Workshop .................................................................................................................................. 55
4.2.1 Introduction .............................................................................................................................................. 55
4.2.2 Organizational Structure of Workshop ..................................................................................................... 55
4.2.3 General Organizational Structure of Accounts Department in a Workshop ............................................ 55
4.2.4 Type of Works Performed in a Workshop ................................................................................................ 56
4.2.5 Departments in a Workshop .................................................................................................................... 56
4.2.6 Workshop Manufacturing Suspense (WMS) Account or Workshop Account Current ............................. 57
4.2.7 Workshop General Register (WGR) .......................................................................................................... 58
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4.2.8 Outturn Statement ................................................................................................................................... 58
4.2.9 Fixed Assets .............................................................................................................................................. 58
4.2.10 Store Department ................................................................................................................................ 59
4.2.11 Methods of Procurement of Material .................................................................................................. 61
4.2.12 Illustrations on Stores Accounting ....................................................................................................... 61
4.3 Traffic Accounts Office ............................................................................................................... 62
4.3.1 Station Balance Sheet ............................................................................................................................... 63
4.3.2 Mapping of Accounting Processes at Traffic Accounts Office (TAO) ........................................................ 65
4.3.3 Compilation of Traffic Book ...................................................................................................................... 74
4.4 Other Accounting at Zonal Railway Headquarter ........................................................................ 77
4.4.1 Study of Fuel at HQ Level.......................................................................................................................... 77
4.4.2 Transfer Transactions – Intra and Inter Unit Transactions ....................................................................... 85
4.4.3 Transfer without Financial Adjustments – TWFA ..................................................................................... 90
4.4.4 TWFA transactions to transfer the balances other than source of fund: ................................................. 93
4.5 Other Departments at the Zonal Railway Headquarters ............................................................. 93
4.5.1 Construction Department ......................................................................................................................... 93
4.5.2 Stores Department ................................................................................................................................... 94
4.5.3 Establishment Section .............................................................................................................................. 98
4.5.4 Cash and Pay Section HQ .......................................................................................................................... 98
4.5.5 Settlement/ Pension Section .................................................................................................................... 99
4.5.6 Statement of Service of Non-Gazetted Staff ............................................................................................ 99
4.5.7 Statement of Service of Gazetted Staff .................................................................................................... 99
4.5.8 Expenditure Section................................................................................................................................ 101
4.5.9 Books and Budget Section ...................................................................................................................... 102
5 Understanding of Production Unit (PU) .......................................................................... 106
5.1 Organization structure of PU ................................................................................................... 106
5.1.1 Structure of Accounts and Finance Department .................................................................................... 107
5.1.2 The Production Process .......................................................................................................................... 107
5.1.3 Functions of various Departments of PU ................................................................................................ 110
5.1.4 Management Information System (MIS) ................................................................................................ 115
5.1.5 Understanding of Existing Software Systems ......................................................................................... 115
5.2 Review of Existing Accounting System ..................................................................................... 118
5.2.1 Sections in the Accounts Department .................................................................................................... 118
5.2.2 Mapping of Current Process at PU ......................................................................................................... 122
5.3 Understanding of Workshop Manufacturing Department ........................................................ 126
5.3.1 Materials and its Accounting Treatment ................................................................................................ 126
5.3.2 Preparation of Stores Sub ledger ............................................................................................................ 127
5.3.3 Reconciliation of Gate Attendance with Labour Booking ....................................................................... 127
5.3.4 Compilation of Overheads ...................................................................................................................... 128
5.3.5 Workshop Manufacturing Suspense Account (WMS Account) .............................................................. 128
5.3.6 Monthly and Annual Workshop General Register (WGR) ...................................................................... 130
5.3.7 Vetting of Price Formats ......................................................................................................................... 131
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5.3.8 Transfer of Goods from Workshop to Other Railways ........................................................................... 132
5.3.9 Raising of Debits on Railway Board for Coaches Manufactured during the Month ............................... 132
5.3.10 Production for Non-Railway Customers (NRC) ................................................................................... 132
5.4 Fixed Assets Register at PU ...................................................................................................... 132
5.5 Stores Department .................................................................................................................. 133
6 Central Organisation for Modernization of Workshop-COFMOW .................................... 135
6.1 Introduction ............................................................................................................................ 135
6.2 Organization chart of COFMOW............................................................................................... 137
6.3 Procedure for procurement of M&P items ............................................................................... 139
6.3.1 Accounting aspects of procurement of Machinery and Plant: ............................................................... 140
7 Electrification in Indian Railways .................................................................................... 144
7.1 History ..................................................................................................................................... 144
7.2 Central Organization for Railway Electrification (CORE) ............................................................ 144
7.3 Accounting at CORE Head Office .............................................................................................. 145
7.4 CORE Project Office ................................................................................................................. 147
7.5 Compilation of Fixed Assets Register (FAR) – Electrification ..................................................... 148
7.6 Observations ........................................................................................................................... 155
8 Understanding of Research Designs & Standards Organisation (RDSO) ........................... 157
8.1 History ..................................................................................................................................... 157
8.2 Organisation Structure............................................................................................................. 157
8.3 Accounting at RDSO ................................................................................................................. 159
9 Understanding of Sub-Urban Operations ........................................................................ 160
9.1 Introduction ............................................................................................................................ 160
9.2 Understanding of Sub Urban Train System ............................................................................... 160
9.3 Financial Overview of Sub Urban Segment of Indian Railways .................................................. 160
9.4 Important features of Mumbai Suburban System: ................................................................... 161
9.5 Accounting for Sub urban ........................................................................................................ 161
9.6 Observations ........................................................................................................................... 162
9.7 Costing of Sub Urban Operations ............................................................................................. 162
9.8 Fixed Assets Register-Sub Urban .............................................................................................. 164
10 Kolkata Metro ................................................................................................................ 165
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10.1 History ..................................................................................................................................... 165
10.2 Organizational structure: ......................................................................................................... 165
10.3 Accounting at Kolkata Metro ................................................................................................... 166
11 Understanding of Chennai Metropolitan Transport Project ............................................. 169
11.1 Accounting system of Chennai MTP ......................................................................................... 169
11.2 Observations ........................................................................................................................... 169
12 Understanding of Existing Software ................................................................................ 170
12.1 Introduction: Computerisation of Accounting Activity over Indian Railways ............................. 170
12.2 Functional Module of IPAS ....................................................................................................... 171
12.3 Integrated Material Management System (i-MMIS) ................................................................. 172
12.4 Indian Railway E Procurements System (IREPS)- ....................................................................... 172
12.5 Advanced Railway Pension Access Network (ARPAN) ............................................................... 173
12.6 E-Reconciliation Portal ............................................................................................................ 173
12.7 VPN – ONLINE Budgeting System ............................................................................................. 173
12.8 New Applications ..................................................................................................................... 174
13 Chapter - Way Forward for implementation of Accrual Accounting ................................. 176
13.1 Comprehensive Study of Existing Accounting Systems ............................................................. 176
13.2 Compilation of Fixed Assets Register (FAR) .............................................................................. 176
13.3 Categorization of Fixed Assets ................................................................................................. 177
13.4 Preparation of Opening Balance Sheet (OBS) ........................................................................... 178
13.5 Valuation Norms of Assets and Liabilities ................................................................................. 179
13.6 Finalizing Significant Account Policies ...................................................................................... 180
13.7 Capturing Accounting Transactions on day-to-day Basis ........................................................... 182
13.8 Compilation of Financial Statements ........................................................................................ 182
13.9 Capacity Building, Hand Holding & Training ............................................................................. 182
14 Annexures -Forms and Formats ...................................................................................... 183
14.1 Annexure 1: FAR Format .......................................................................................................... 183
14.2 Annexure 2 - Formats of Financial Statements ......................................................................... 208
14.3 Annexure 3 - Accrual Impact Sheet (Current Assets and Liabilities) .......................................... 232
14.4 Annexure 4 – Notes to Accounts .............................................................................................. 262
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Indian Railways - Comprehensive Scope Evaluation Report
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Indian Railways - Comprehensive Scope Evaluation Report
2017
1 | ICAI Accounting Research Foundation
1 Introduction
1.1 Project Background
The Government accounting system in India, in all three tiers of Governance, i.e., the Union,
States and Local bodies including Autonomous or Statutory Bodies, is pre-dominantly cash
based accounting system linked with the budgeting process within the framework of
legislative financial control. The basic principles derive its form and substance from cash
based procedures that were laid during the British period. The basic principles of the
government accounts are enunciated in General Financial Rules and other related legislations,
manuals, etc. as prescribed in the ‘Operational Guidelines for Accrual Based Financial Reporting’ as
issued by GASAB secretariat. In recent times, there has been a paradigm shift in the priorities of
public finance management from identifying resources for public scheme funding to fiscal
prudence, efficiency & transparency in public spending. These shifts in priorities have been
reflected in initiatives like the Fiscal Responsibility & Budget Management Act and Outcome
Budget. It is reflected that there is a need for Financial Reporting that is to be in sync with the
shift in priorities of Public Finance. To achieve this, accounting systems the world over, are
being revisited with an emphasis on transition from rule to standards based accounting and
migration from cash to accrual based system of accounting.
On these lines the Ministry of Railways (MoR) decided to prepare an additional set of
Financial Statements on accrual based system of accounting in addition to the cash based
Financial Statements, as it would help in bringing more transparency, timely availability of
information, improved financial performance, advanced decision-making, etc.
As a part of the Accounting reforms project a pilot study on introduction of accrual
accounting was undertaken at North Western Railway, Jaipur and Rail Coach Factory,
Kapurthala. The pilot study saw the preparation of accrual based financial statements of
these units in addition to the present cash based financial statements. On successful
completion of pilot project, it was decided to roll out this exercise across the Indian Railways
on the basis of same methodology and strategy as followed in the pilot study.
1.2 Understanding of Accrual Accounting System
Accrual based accounting is a method of recording transactions by which revenues, costs,
assets and liabilities are reflected in the accounts of the period in which they accrue and arise,
irrespective of actual receipt/ payment thereof..
Objectives and Benefits of Accrual Based System
This section gives the objectives and the merits of transitioning to accrual based accounting
system. The primary objectives of accrual based accounting are:
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i. Improve decision-making to enhance efficiency and effectiveness of public spending
through the creation of more accurate and accessible financial information.
ii. Improve resource allocation due to a better insight into costs of policy and transparency
of results.
Benefits
Accrual accounting provides meaningful information both for accountability and decision-
making. Financial information prepared on an accrual basis allows users to:
i. Make better/balanced comparisons between alternative disposition(s) of resources;
ii. Better assessment of performance, financial position and cash flows of the entity;
iii. Better evaluation of the entity’s ongoing ability to finance its activities and to meet its
liabilities and commitments;
iv. Gain clearer insight into how the organization finances its activities;
v. Better evaluation of the organization’s performance in terms of its service costs, efficiency
and accomplishments; and
vi. Gain more understanding into how the organization is managing its resources.
In context of Indian Railways, Accrual Based Accounting System would help in achieving the
following objectives:
i. The accounting system will be in line with commercial accounting system;
ii. Under the accrual system, revenue is recognised as and when the claim of the entity in
respect of such revenue is recognised has become reasonably enforceable. Thus, an item
of income would constitute revenue even if cash is not received against it. Currently, IR
follows a hybrid system of accrual and cash accounting system. To elaborate, the traffic
earnings are accounted for on booking basis and certain other items of earnings viz. rent
and siding charges and interest and maintenance charges from sidings are accounted for
on billing basis. The realisation thereof is monitored through Suspense heads Traffic
Accounts and Demands Recoverable, respectively. However, in other cases the revenues
are recorded only when these are collected. Further, the revenues are recorded on
booking/ billing basis without regard to the accounting period. For example, the revenue
of passengers tickets booked for period beyond accounting year (viz. passenger ticket
issued in March for journeys in the next financial year) and rent etc. received in advance
are recorded as revenue in the year of booking/ billing. The financial status of the
Division/Workshop or as a whole Indian Railways will be better reflected if the total
revenue including any amount receivable is shown appropriately. If done, it will help in
understanding the revenue generation possibility, collection efficiency, etc. It is pertinent
to note that, for this purpose, accounting policy for revenue recognition is to be laid down
first;
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iii. Under the accrual system, expenditure is recognised as and when the liability for
payment arises even if the payment is not made at that time. Under present accounting
system , the value of services already consumed during the financial year is not
recognised by IR as an expense of the period in which the service is received unless and
until the payment is made for it except in case of salaries/ wages. For salaries, a suspense
account, namely, Demands Payable and Labour is maintained. The salaries of the
accounting period are debited to the Expenditure head by credit to these suspense heads
and the latter is cleared on actual payment in subsequent accounting period. Thus, in
present accounting system, expenditure incurred on a repair and maintenance contract,
which has been executed and completed during a financial year, shall not be recognised
as an expense of the said financial year unless the payment is made in that financial year
for the bills received in respect of the services received. This would have an effect of
showing a higher financial surplus or a lower financial deficit and thus a better (and
unintended incorrect) picture of the entity.
However, in accrual basis of accounting, expenditure incurred on repairs and
maintenance shall be recognised as expense of the financial year in which it is incurred
even if not paid during that year so that the Income and Expenditure Statement correctly
reflects the position in respect of the expenditure. The amount not paid shall be treated as
a liability (payable) and be disclosed as such in the Balance Sheet. This will enable the
entity to be aware of its obligations towards its creditors;
iv. The accrual basis of accounting matches the expenditures for a year with the income
earned in that year. It thus provides for a better understanding of the operating
performance of the entity;
v. Accrual based accounting system clearly distinguishes between items of revenue and
capital nature. This helps in correct presentation of financial statements, viz., the Income
and Expenditure Account and the Balance Sheet. Thus, an asset, which is likely to yield
benefit of an enduring nature, is shown as such and not expensed. This facilitates an
understanding of the asset base of the entity with reference to which services are provided
and which revenues are earned;
vi. Financial Statements prepared on accrual basis of accounting have a much greater degree
of acceptability amongst various stakeholders;
vii. One of the distinct advantages of accrual accounting system is ease in financial appraisals
by financial institutions/ other stake holders. It also facilitates credit ratings through
approved credit rating agencies, which is a pre-requisite for mobilising funds in the
financial markets.
1.3 Introduction to Comprehensive Scope Evaluation Report (CSER)
As a part of the MOU between ICAI ARF and Indian Railways (IR), an action plan for
conceptualizing and implementing the accounting reforms in the Indian Railway has been
agreed wherein an additional set of Financial Statements on accrual based system of
accounting is being prepared in addition to the cash based Financial Statements. Under this,
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one of the key deliverables is Comprehensive Scope Evaluation Report (CSER). The CSER is
intended to put together all the components of the existing system, the intended accounting
system, identify the gaps and conceptualize the data requirement and other necessary details
required to fill up the gap to produce the Financial Statements based on accrual based
accounting system in a time bound manner. In particular, the CSER is envisaged to address
the task of bringing together in a detailed manner all the components of the existing system
and the extent of prudence and propriety of the existing system by presenting:
i. detailed description of the present accounting system for the purpose of recording and
processing of revenue receipts, capital receipts, revenue expenditure and capital
expenditure;
ii. detailed internal organization chart of finance and accounts division; and
iii. flow of data/information in respect of every kind of assets and liabilities and also the
validity thereof.
iv. the methodology for converting cash based financial statements into accrual based
financial statements and roadmap to achieve the same.
ICAI ARF has already prepared Comprehensive Scope Evaluation Report (CSER) based on
their pilot study on North Western Railway and Rail Coach Factory, Kapurthala. However,
for rolling out the accrual accounting across the Indian Railway, CSER for Indian Railways
as a whole is required to be prepared. Therefore, it was considered necessary to study the
working/ activities/ accounting of several segments (areas/offices) of Indian Railways which
were not covered in North Western Railway in compilation of CSER for the entire Indian
Railways. The offices covered for preparation of CSER are as under:
1. Central Organisation for Modernisation of Workshops (COFMOW), New Delhi;
2. Central Organisation for Railway Electrification (CORE), Allahabad;
3. Project Office, CORE, Lucknow
4. Sub Urban Operations, Mumbai
5. Kolkata Metro, Kolkata
6. Metropolitan Transport Project (MTP), Chennai
7. Research &Development Standards Organisation (RDSO)
8. Traction Sub Station (TSS), Sahibabad
9. Electric Loco Shed, Ghaziabad
10. AMU Car Shed, Mumbai
11. Traffic Accounts Office, Western Railway, Ajmer (for SPV)
1.4 Structure of the CSER
Based on study carried out at selected offices (selected in consultation with the concerned
officials of the office of CPM/AR of Indian Railways) across the Indian Railways, the CSER
comprise of the following chapters:
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5 ICAI Accounting Research Foundation
a. Approach and Methodology
b. Indian Railways Overview
c. Understanding of a Zonal Railway
d. Understanding of a Production Unit
e. Electrification in Indian Railways
f. Understanding of Suburban operations
g. Kolkata Metro
h. Research Design and Standard Organization
i. Understanding of Chennai Metropolitan Transport Project (MTP)
j. Understanding of Existing Software
k. Way Forward for Implementation of accrual accounting
l. Annexures
It may be mentioned here that in case any segment/area/office of Indian Railways
comes to the knowledge of ICAI ARF which is not covered in CSER, the same will be
covered in the Accrual Accounting Implementation Manual which is one of the
deliverables of the project in the later stage.
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2 Approach and Methodology
For any project/assignment, a good approach and methodology is the most essential key for its
timely completion and also, for the fulfilment of client requirements. The ICAI ARF team has
also adopted time tested methodology to complete this project. The team deployed has
experience of Railway Accounting and financial management. In addition it has the support of
professional counterpart team of the Chief Project Manager/ Accounting Reforms. Therefore, it
is placed in a strong position to meet the objectives of the project with a minimal learning curve.
Further, based on the collective information available to the project team in designing and
undertaking similar kind of assignments carried out for various Government
departments/offices, the lesson learnt from such assignments and insights, knowledge and skills
gained by the team members in these assignments, the project approach and methodology have
been developed. This chapter provides ICAI-ARF Team’s approach and methodology for the
assignment.
A consultative and participative approach will be emphasized to ensure maximum stakeholder
participation. This will encourage local ownership of the Project, and will be beneficial for the
Indian Railways while sustaining the process. Systems will be developed using user friendly
formats to improve in-house participation.
Our experience suggests that a hands-on, grass-root level approach with policy support from
the top has the maximum beneficial impact. A similar approach is proposed to be adopted
for this assignment also.
The consulting team of ICAI ARF has already completed pilot study in North Western Railway
(NWR) and Rail Coach Factory, Kapurthala (RCF) on accrual accounting. Same methodology
will be followed for implementation of accrual accounting across Indian Railways which
involved recasting the financial statements of NWR on accrual basis, deriving data and
information from the existing accounts based on the cash based Account Current, with
additional information on accrual elements culled out of existing records. Significant accounting
policies approved jointly by ICAI ARF and Accounting Reforms (AR) Directorate of Indian
Railways were applied in the formulation of these statements. A similar methodology will be
adopted for roll out of accrual accounting in other Zonal Railways and Production Units.
Various activities involved in the proposed methodology are as under:
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# Name of Deliverable Activities to be Undertaken/ Methodology
1 Updation of
Comprehensive Scope
Evaluation Report(CSER)
ICAI ARF team had drafted a CSER during the NWR
and RCF pilot studies. Further to it, the Nodal Team of
ICAI ARF has now covered the following
offices/activities to produce this updated CSER of Indian
Railways as a whole:
1. Central Organisation for Modernisation of Workshops
(COFMOW), New Delhi;
2. Central Organisation for Railway Electrification
(CORE), Allahabad;
3. Project Office, CORE, Lucknow
4. Sub Urban Operations, Mumbai
5. Kolkata Metro, Kolkata
6. Metropolitan Transport Project (MTP), Chennai
7. Research &Development Standards Organisation
(RDSO)
8. Traction Sub Station (TSS), Sahibabad
9. Electric Loco Shed, Ghaziabad
10. AMU Car Shed, Mumbai
11. Traffic Accounts Office, Western Railway, Ajmer (for
SPV)
2 Preparation of Opening
Balance Sheet as on 31st
March 2015, Financial
Statements for the
Financial Year 2015-16
and 2016-17
Determination of Current Assets and Current
Liabilities;
Determination of Capital Work in Progress (CWIP)
Determination of Long Term Liabilities
Validation of data captured on the above
Collection of data having accrual impact not captured
in the existing cash based financial statements
Finalization of Significant Accounting Policies on
areas which were not covered during the NWR and
RCF, Kapurthala Pilot Studies
Preparation of Profit & Loss a/c
Preparation of Statement of Financial Position, i.e.,
Balance Sheet
Preparation of Cash Flow Statement
Notes to Accounts
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# Name of Deliverable Activities to be Undertaken/ Methodology
3 Mapping of Existing
Chart of Account (F2) for
the purpose of
implementation of
accrual accounting at
transaction level.
Review of existing chart of accounts;
Assessment of existing codification structure for
income, expenditure, assets and liabilities;
Grouping and sub grouping of assets, liabilities,
income and expenditure as per Generally Accepted
Accounting Principles (GAAP) in due consultation
with Indian Railways (IR) officials; and
Testing/Validation of new chart of accounts.
4 Updation of Accrual
Accounting
Implementation Manual
(AAIM)
Finalization and incorporation of accounting policies
in new areas;
Finalization of period end procedures/ reconciliation
procedures; and
Finalization of forms/formats for books of accounts/
register to be maintained for accrual based system of
accounting.
Covering those aspects of Indian Railways, if any
which comes to the knowledge of ICAI ARF at later
stages of the project and so not covered in CSER.
2.1 Team for the Assignment
The Nodal team comprises of CA Atul Gupta, Project Mentor, Rollout Project and Director,
ICAI ARF, who shall monitor the assignment He shall be assisted by the Nodal Team stationed
at Delhi.
CA Atul Gupta
CA Namrata Khandelwal CA Ajesh Tuli Shri Anil D Lal
CA Vikas Maheshwari CA Monika Sharma CA Devesh Medetwal
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This team will be assisted by Unit teams of consultants stationed at all Zonal Railways and
Production Units. Both these teams shall work under overall guidance of Chief Project
Manager/ Accounting Reforms.
2.2 Approach & Methodology
Indian Railway uses a centralized accounting software i.e. Integrated Payroll & Accounting
System (IPAS) across all Zonal Railways in India. However, Production Units presently use
different accounting packages for compilation of accounts. As informed, IR plans to implement
IPAS in these Units also.
ICAI ARF team has already completed pilot study in one Zonal Railway (NWR) and one
Production Unit (RCF) and prepared financial statements on accrual basis in addition to the
existing financial stements as being prepared by IR which are predominantly on cash basis
(with some elements of accrual eg. Traffic Accounts, Demands receivable, Demands payable,
etc.) .
Preparation of Financial Statements on accrual basis as an additional set is now being rolled out
across Indian Railways. To complete this task in a professional manner, the project team is
divided into:
a. Nodal Team: Nodal Team is the central team which is responsible for overall execution
and completion of the project. The Nodal Team shall oversee the implementation process across Zonal Railways and Production units by way of handholding, trouble shooting and capacity building.
b. Unit Teams: These teams will be stationed at each of the Zonal Railway/Production Unit/
other accounting units. Around 25 unit teams will be in place at the ground level. The team
strength at the Zonal Headquarters would depend upon the number of Divisions and
Workshops in each of the Zonal HQs, preferably one resource for two Divisions/ Workshops.
The teams would be travelling to the Divisions/ other offices, as and when required for
handholding. In case of Production Units, the team strength would be 3 resources per
Production Unit.
Further, an IT utlitity is also being developed for preparation of financial statements. The
following stakeholders will access the IT utility:
1. Unit Teams;
2. Nodal Team; and
3. AR team of Indian Railways
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2.3 Tasks to be performed by Unit Teams of ICAI ARF:
1. The entire information/data will be captured in prescribed excel formats as circulated by
the Nodal Team. This information will be fed in the utility by the Unit teams of ICAI ARF.
2. Unit Teams will be the main users of the utility and will update the information in
proposed utility as per stipulated schedule in discussion with the Nodal Team.
3. Once the information/data is approved by the Nodal Team, only then it will be updated in
the database of the utility.
4. Apart from the information received from Zonal Railways/Production Units, unit teams
will also / feed information from appropriation account (where applicable) in the system.
Thereafter the IT utility will generate the Profit & Loss Account, Balance Sheet and Cash
Flow Statement, etc., in the prescribed format.
5. Unit teams would be responsible for training of IR staff in their respective zones, divisions,
workshops. Assistance from Nodal Team would be provided as required.
2.4 Tasks to be performed by Nodal Team of ICAI ARF:
1. Nodal Team will be responsible for overall monitoring and execution of the project.
2. Rules for calculation of depreciation will be defined by Nodal team. The Nodal team will
define these rules through their login account and these rules will be applicable on
information entered by Unit teams in the database.
3. All desired MIS reports will be generated by Nodal Team through their login accounts.
4. The reports builder tool will be part of IT utility and reports will be generated after
selection of various parameters.
5. Approval of any modification in the information as fed by the unit team.
6. Nodal team will be responsible for valuation of Tracks, Rolling Stock, preparation of
training manual and training of Unit Teams and IR staff.
7. Nodal team would be responsible for interaction with the O/o CPM/AR and AR Directorate
at Railway Board.
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8. Nodal team shall also study the Accounting treatments and consolidation done at the
Railway Board level to prepare a consolidated Balance Sheet and Profit and Loss account
for IR as a whole.
2.5 Tasks to be performed by AR Team of Indian Railways:
1. To arrange provision of all the necessary data of Fixed Assets, Accrual Impact Sheet, etc., in
prescribed format within stipulated time period from all the accounting units;
2. To arrange provision of data of Rolling Stock and Track to Nodal Team;
3. To provide suggestions and comments on the deliverable as submitted from time to time
within stipulated time to facilitate the timely finalization of deliverables;
4. To liaison with and motivate Zonal Railways, Production Units and other organization of
Indian Railways to extend their full co-operation and support to the Unit teams stationed
there;
5. To finalize accounting policy related issues from time to time with due approval of Railway
Board.
In the end, we can say that AR Team will be functioning as the spindle around which the Nodal
Team will be providing its expertise and guiding the Unit Team to complete the project in a
time bound professional manner.
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3 Indian Railways–An Overview
INDIAN RAILWAYS, the premier transport organization of the country is one of the largest
rail networks in Asia. The first railway on Indian sub-continent ran over a stretch of 21 miles
from Bombay to Thane. Since then, it has covered many more miles.
Indian Railways is a multi-gauge system consisting of Broad Gauge, Meter Gauge and Narrow
Gauge; multi-traction system consisting of electrified and non-electrified routes. Apart from
above, IR is using several types of locomotives, coaching vehicles and freight wagons. Also, IR
owns almost 7000 stations spread across the country, hundreds of yards, thousands of good
sheds and repair shops and a workforce of more than 1.5 million.
3.1 Organization Structure1
1 Source : Ministry of Railways (Railway Board) CMS Team Last Reviewed on : 14-02-2017
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4 Understanding of Zonal Railway2
Indian Railways is divided into various Zonal Railways and Production Units for the purpose
of administration and control. Zonal Railways are further sub-divided into Divisions/
Workshops/ Traffic Accounts Offices etc. Each of the Zonal Railway/ Production Unit is headed
by a General Manager (GM), Division is headed by a Divisional Railway Manager (DRM) while
Workshop is headed by Chief Workshop Manager (CWM).
There are various departments in a Division and Workshop viz. Engineering, Mechanical,
Electrical, Signal and Telecommunication, Accounts, Personnel, Operating etc. ICAI ARF Team
undertook field visit to Ajmer Division, Traffic Account Office and Ajmer Group of Workshops
for gaining an insight into their working and accounting aspects.
4.1 Division3
Division is, primarily, an expenditure unit and is responsible for recording of expenditures. The
project team held detailed discussions with various officials of Division to understand the
existing organization hierarchy, nature and process of accounting transactions, data capturing
mechanism, type of records developed, level of adequacy, and preparation and presentation of
financial statements, etc.
The general organisational structure of a Division is as under:
2Based on pilot study undertaken in North Western Railway 3Based on Pilot study carried out in Ajmer Division
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Sr. Div.
Engineer (W)
Div. Engineer
(East)
Divisional Railway
Manager
Additional Divisional Railway
Manager & Mukhya Rajbhasha
Adhikari
Sr. Div.
Engineer (Co.)
Sr. Div. Signal &
Tele. Engineer Sr. Div. Finance
Manager
Chief Medical
Superintendent
Sr. Div. Operating
Manager
Sr. Div Commercial
Manager
Sr. Div.
Personnel
Officer
Sr. Div. Mechanical
Engineer-Power
Sr. Div. Security
Commissioner Div. Safety
Officer
Sr. Div. Mechanical
Engineer-SL/ABR
Div. Engineer
(South)
Divisional
Materials
Manager
Rajbhasha
Adhikari
Sr. Div.
Electrical
Engineer
Sr. Div.
Mechanical
Engineer
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4.1.1 Functions of Various Departments in a Division
i. Commercial Department
Commercial department is the interface between the Railways and its customers. It ensures
comfortable and safe journey to all passengers by taking care of passenger amenities at the
stations and maintaining friendly relations with the passengers and traders. It also looks
after marketing and transportation of goods. Fixing of rates, fares and other charges and
correct collection and remittance of traffic receipts are also amongst its functions.
ii. Personnel Department
Personnel Department looks after the staff matters, welfare, industrial relations and
personnel policies, rules & regulations, recruitment, training, promotions, transfers,
selections, creation of posts , retirement benefits, disbursement of pay and allowances,
productivity linked bonus and maintenance of service and leave records of non-gazetted
staff except RPF and Accounts departments
It engages with the recognized unions and arranges meeting of the Permanent Negotiating
Machinery for settlement of staff grievances. The Personnel department also ensures
compliance of the provisions of various laws and acts promulgated by the Government of
India from time to time viz. Industrial Disputes Act, Factory’s Act, Workmen’s
Compensation Act, Wages Act, Disciplinary & Appeal Rules and Railway Servant Service
Conduct Rules, etc.
Personnel department is the custodian of all establishment rules and regulations and their
interpretation in service matters. Many welfare activities like running of staff canteens,
holiday homes, consumer cooperative societies, railway schools and institutes etc., are also
undertaken by this Department.
iii. Engineering Department
Civil Engineering Department is responsible for the construction and maintenance of all
civil engineering assets, viz. all buildings including station buildings, residential quarters,
hospital, sheds, workshop structures, goods sheds, etc., water supply and sanitary
installations, railway tracks, sidings, all allied structures, bridges including road over
bridges and road under bridges.
The Engineering Department of Indian Railways has two distinct organizations namely
Open Line and Construction. While the Open Line Organization is responsible for
maintenance of all fixed assets of Indian Railways, i.e., Tracks, Bridges, Buildings, Roads,
Water Supply, etc., the Construction Organization is responsible for construction of new
assets such as new lines, gauge conversion, doubling and other expansion and
developmental works in Railways.
iv. Medical Department
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The Medical department primarily performs the following functions:
(a) Curative Services: Medical Department provides curative service to the all railway
employees, Railway Employees Liberalised Health Scheme (RELHS) card holders and their
dependants;
(b) Preventive/Promotive Health Services:
1. Cleanliness and disposal of garbage at nominated place of municipal corporation in
Railway colonies;
2. Collection of water samples for bacteriological and chemical examination and
testing of chlorination on regular basis;
3. Hygiene and Sanitation at railway stations and Railway colonies;
4. Wellness programs are conducted at workplaces in addition to regular health
check-up camps at remote places where employees and their dependents are
screened for chronic preventable diseases; and
5. Vaccination and anti-natal check-up is performed on stipulated days every week.
(c) Disaster Management;
(d) Medical examination of candidates and employees; and
(e) Reimbursement.
v. Mechanical Department
Mechanical Department assists the operating control in smooth and safe operation of trains.
Technicians, Helpers and Carriage and Wagon Supervisors are responsible for maintenance
of rolling stock and maintenance and operation of break down equipments. The key
functions of Mechanical Department are:
(a) Maintenance of coaching & freight rolling stock; and
(b) Maintenance and operation of break down equipments, restoration, relief and rescue
work in case of railway accidents.
Functions of Mechanical Department include repairs & maintenance of Diesel Locomotives,
Coaches and Wagons. It carries out periodical overhauling (POH) of locomotives, coaches &
wagons and other rolling stock in workshops. It is also responsible for fuel management for
diesel locomotives and crews; monitors punctuality of passenger trains; undertakes
maintenance and operation of break down equipments, restoration; relief and rescue work
in case of railway accidents; planning & execution of works, machine & plant and rolling
stock programme.
vi. Electrical Department
Functions of the Electrical Department include operation and maintenance of electrical
power supply for lighting, ventilation, air-conditioning in station areas, residential areas,
passenger reservation system (PRSs), offices, hospitals, running rooms, rest house and in AC
and Non-AC coaches; water coolers at stations, offices, running rooms, hospitals, etc. It also
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undertakes operation and maintenance of power supply to stations; water supply pumps for
stations and railway residential colonies.
vii. Signal Department
Signal Department is responsible for installation and maintenance of signalling system for
safe and speedy movement of trains. It undertakes operation and maintenance of panel
interlocking/route relay interlocking/electronic interlocking and train warning & protection
systems.
viii. Telecom Department
Functions of Telecom Department include control over Train Traffic Control System.
Telecom Department is responsible for maintenance of all telecom equipments of train
control circuits and responsible for maintenance of telephone exchanges, associated
equipments and underground cable of telephone exchanges at stations. It is responsible for
providing telecommunication infrastructure for Passenger Reservation System (PRS),
Unreserved Ticketing System (UTS), Freight Operation Information System (FOIS), Crew
Management System (CMS), Coaching Operating Information System (COIS). It manages
the Railway Information Network (Rail net).
Common functions for Signal & Telecom Department: It provides various passengers
amenities for the benefit of travelling public.
Public Address System is provided at various stations to announce the arrival & departure
of trains and other information required by travelling passengers.
Train Indication Boards are provided for indicating the train timing and platform numbers.
Coach Indication Board is provided for indicating the coach position of the train on the
platform.
ix. Accounts Department
Accounts department on IR has twin responsibility of rendering financial advice and book
keeping. Functions of Accounts Department mainly consist of keeping the accounts of the
railway in accordance with the prescribed rules; internal check of transactions affecting the
receipts and expenditures of railway; prompt settlement of proper claims against railway;
rendering advice to the administration on matters involving financial implications ;
compilation of budget; monitoring the budgetary control procedures from time to time;
discharging other management accounting functions such as providing financial data for
management reporting, inventory management, purchase/contracting decisions and surveys
for major schemes; assessing the financial irregularity (if any) in the transactions of the
railways. In addition, Accounts department also handles personnel functions of its staff.
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Cash and Pay Office also comes under the purview of the Accounts Department and
functions as its treasury branch. They are responsible for receiving the remittances received
in cash from stations/ other entities and are entrusted with the task of remitting the cash in
banks. The Cash and Pay office also disburses payments authorised by Accounts Officers
and submit accounts thereof to the Accounts Department.
Statistical branch brings out periodical statistics of operations, workshop repairs,
commercial results, stores transactions etc.
Traffic Costing branch works out cost of traffic operations gauge-wise, service wise and
traction wise. EDP Centres also function under Accounts department and are responsible for
development/ maintenance/ processing of various computerised applications of Accounts/
Stores/ Traffic departments etc. to produce required MIS besides being nodal office for
technical appraisal of procurement of computers etc.
x. Audit Department
Audit department works under the O/o C&AG of India and carries out Statutory audit in all
Government Departments. Functions of Audit Department mainly consist of auditing
sanctions involving finance; auditing rules and general orders involving finance; auditing
tender documents involving finance; auditing accounts maintained by Accounts
Department; auditing estimates prepared for projects; checking internal audit mechanism
ensuring the accounting system; test check of vouchers; inspections of offices; check of all
orders/sanctions issued by GM & other officers. Statutory Audit has three fold purposes:
(i) Accountancy Audit i.e. to check accuracy of arithmetical calculations and to see that all
payments are supported by receipted vouchers. It assesses the adequacy of the accounting
system and system of internal check in the organisation.
(ii) Appropriation audit i.e. to check the classification of expenditure to ensure that the
expenditure and receipts have been charged to proper heads of account and further that the
voted appropriations under these heads have not been exceeded. It is applied as a measure
of Parliamentary Control.
(iii) Administrative Audit i.e. audit of sanctions to check that expenditure has been incurred
according to prescribed rules and regulations or under sanctions of a competent authority.
xi. Security (RPF) Department
Functions of Security Department are to protect and safeguard passengers and railway
property, escorting passenger trains ; providing access control, regulation and general
security on the platforms, passenger areas and circulating areas;, passenger luggage to
ensure passenger facilitation; removal of obstructions in the movement of railway property
or passenger area. RPF aims at hassle-free train operations. RPF also takes steps for
prevention of any cognizable offences against the passengers. The RPF is legally empowered
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19 ICAI Accounting Research Foundation
to apprehend any person who
against without ticket travellers.
xii. Operating Department
The operating department is
The department arranges multi
Corporation of India. This includes
Operating Department has to
for infrastructural development
4.1.2 Accounting System
The organizational structure of
4.1.3 Various Sections
The Accounts Department comprises
each section. Each section is
(SSO/SO). Following are the sections
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who is involved in such offences. RPF assists ticket
travellers.
responsible for running of both passengers
multi modal traffic in regular coordination
includes both traffic for export and traffic for
to examine the requirements of traffic, which
development.
System at Division Level
of Accounts Department is as under:
Sections of Accounts Department in a Division:
comprises various sections and a separate code
is headed by one/ more Senior Section Officer
sections in the Accounts Department at the Division
Senior Divisional Financial Manager
Divisional Financial Manager
Assistant Divisional Financial Manager
Senior Section Officer
Accounts Assistant
Junior Accounts Assistant
Accounts Clerk
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ticket-checking staff
passengers and goods trains.
coordination with Container
domestic use. The
traffic, which involves planning
Division:
code is assigned to
Officer/Section Officer
Division level:
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i. Administration and Co-ordination Section: This section deals with general
administration work of Accounts Staff, e.g. departmental examination, records of
attendance, preparation of salary bills, allotment of residential quarters, etc.
ii. Inspection and Audit: Inspection section deals with inspection of various offices for
monitoring deficiencies/irregularities in regard establishment, stores and construction.
This section is also responsible for periodic verification of stock items, which are
maintained in the stock registers. Further, if any objection is raised by auditors, then
this section makes necessary arrangement to respond to the Audit objections.
iii. Finance Section: Finance section is responsible for vetting of all financial proposals
and estimates.
iv. New Pension Scheme: This section deals with matters relating to the new pension
scheme. For example, to monitor the employee contribution/Employer contribution,
keeping necessary records as applicable, to ensure timely payment of NPS to
regulatory bodies, etc.
v. Provident Fund Section: This section is responsible for recording all transactions for
provident fund. For example, maintenance of PF ledgers, passing entries for PF
received from employees, withdrawal from PF, Loan against PF balances, etc.
vi. Pension Section: This section maintains all records relating to payment of pension. For
example, preparation of PPO, review of pension paid, etc.
vii. Establishment Section: This section maintains the service sheet of employees and
deals with all service matters and passing of salary bills.
viii. Miscellaneous Section: This section is in charge for Estate Management. For example,
supplying of office stationery to every section as per requirement, repair &
maintenance of office equipment, computers, printers, etc.
ix. Expenditure Section: This section records all types of contractors/suppliers bills,
utilities bills, imprest bill, etc. Also have the records of all securities deposit, EMD
received from contractors/suppliers.
x. Budget Section: Budget section deals with preparation of budget and review.
xi. Works Accounts Section: This section reviews the bills of all contractors in respect of
works contract with the measurement book before making any payment.
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xii. Books Section: Books section is the compiling section. Preparation of cheque for
payment is done by this section. Books section also prepares monthly account current
for revenue expenditure and capital expenditure.
The financial statements (Profit & Loss A/c and the Balance Sheet), are prepared at Zonal
level and not at Divisions, Workshop & Traffic Account Office level. However, the Division
prepares following statements as stipulated under the Codes and Manuals of Indian
Railways:
i. Account Current: Account current is a monthly statement of receipts and disbursements
of an account circle, duly classified under the prescribed head of accounts. The main
principle on which the Account Current are prepared is that all entries should be shown
“NET” basis, i.e., after deducting the write back adjustment against each head of account
i.e. entries of (-Debits) and (-Credits). The figures are shown for the month as well as for
the financial year. The monthly Account Current is prepared at workshop/division level
and thereafter, is sent to Head Quarters Office where it is consolidated for the entire
Zonal Railway.
The monthly Account Current is supported by various schedules giving the details of the
expenses/receipts. Presently, under Accounting Information Management System,
preparation of monthly account current and the connected schedules is computerised.
ii. Block Account: As per Indian Railways Finance Code 1, with effect from 1st April, 1950,
two separate accounts are maintained to represent the value of all the physical assets of
the railway zone- a Loan Account and a Block Account. The Loan Account represents the
loan (share) capital and the physical assets created therefrom. The Block Account
represents all the physical assets of the Zone whether financed from loan capital or the
Railways’ own generation of funds. Block account includes plant, property and
equipment (Fixed Assets) as the major item on the asset side with a detailed schedule
indicating the plan head of assets, source of fund, etc., Block account is maintained in
separately for commercial and strategic lines.
4.1.4 Management Information System (MIS)
The Divisions prepare various reports based on their need and the requirements of higher
authorities. Some of the finance and accounts related MIS reports include:
i. CO6 report for 10 days;
ii. Report on balances under suspense heads;
It is pertinent to note here that though accounting is done at Division/Workshop/Traffic
Accounts Office level, consolidation of accounts is done at Zonal level. The Traffic Accounts
Office is responsible for accounting of all earnings.
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4.1.5 General Understanding of Accounts Department
i. General Payment Process: Payments made by the Divisions include salaries, temporary
wages, payments related to works, general administration, etc. All payments are made
through the Accounts Branch. The general payment process is as under:
ii. CO6 Registration: This is the first step, to make payment of any bill, required to be paid
through bank by RTGS/NEFT. After registration, a 12 digit unique registration number
is generated and this number is called CO6 number. Basically, the CO6 is a
memorandum entry. It is to be noted that the CO6 registration of a bill does not result
into recognition of liability. After registration of CO6, bills are checked in all respect by
the concerned dealing clerk and corresponding SSO. Thereafter, it is required to be
Checking
of bills
Sanction by
Competent
Authority
Preparation of
CO7 and
Allocation to
concern head
Check by
competent
Authority
Send to Book
Section for
Cheque Abstract
Journal
Voucher
CO6 of
Each Bill
Generation of Cash
Book
Account Current
Revenue & Capital
Back to
personnel
Journal
Book
Cheque Abstract Prepared
Bills received by various
sections involving cash
payments.
Start
End
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sanctioned by the competent authority. CO6 number is structured in 4 tier in the
following manner:
CO6 Number : Total 12 Digit
Accounting
Unit Code
Section Code Financial
Year Code
CO6 No.
2-Digit
Code
2-Digit Code 2-Digit
Code
6-Digit Code
Static Code Static Code Change
with each
year
New series starts for
each year
0 3 0 1 1 5 0 0 0 0 0 1
It is to be noted that for each year, CO6 number is started afresh.
iii. CO7 or Bill Passing: After completing CO6 registration and checking the bills in all
respect, accounting entry is to be passed in books of accounts to record the transaction.
The entry is to be recorded after classification under proper head of account. This
process is termed as CO7 or bill passing. After generation of CO7, it becomes a liability
of the railways and payment is required to be made to settle this liability. Like CO6, it
also consists of 12 digits. However, CO7 has the following architecture of five tier:
CO7 Number : Total 12 Digit
Accounting
Unit Code
Section
Code
Financial
Year Code Static Code
for CO7
CO7 No.
2-Digit Code 2-Digit Code 2-Digit Code 1-Digit 5-Digit Code
Static Code Static Code Change with
each year
Static Code New series starts for each
year
0 3 0 1 1 5 7 0 0 0 0 1
4.1.6 General Process of Recording of Intra-Unit Transactions
Use of (–) Debit and (-) Credit–At present, Indian Railways uses (-) Debit and (-) Credit for
recording various transactions including intra unit transactions to maintain budgetary
propriety. Though from the commercial accounting point of view, these are not standard
terms. We can understand the use of the same with the help of following examples:
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4.1.7 Use of Suspense heads
In Indian Railways various transactions are recorded with the help of suspense heads. A
suspense account is an account in which transactions are posted on a temporary basis until
their final head is determined. Suspense accounts sometimes are also used as clearing
accounts.
As per the ‘Suspense Accounts Manual’ issued by Controller General of Accounts (CGA), certain
intermediary/adjusting heads of accounts known as ‘Suspense Heads’ are operated in
Government Accounts to reflect transactions of receipt and payments which cannot be
booked to a final head of account due to lack of proper information as to their nature, or for
other reasons. So, not only Indian Railways but also various other Government
department/ministries use suspense heads.
Presently, certain suspense heads are operated in the accounts of the railways to facilitate
proper accounting of the various types of transactions which cannot be booked immediately
under the final heads for want of allocation or due to any other reason. Suspense heads
therefore play a very important role in compilation and maintenance of accounts of the
railways. Following is an illustrative list of some transactions for which suspense heads are
operated:
i. Advance to Employees; and
ii. Inter unit transactions/intra unit transactions, etc.
Example 1 If an employee of a Division is transferred from one Division to other Division and
there is a credit balance of Rs. 50,000 in the employee’s PF account. Transferor Division
will record this transaction by passing following entry:
Suspense head for PF - (Credit) 50,000
Suspense head for Transferee Division Credit 50,000
On the other hand Transferee Division will pass following entry to record this
transaction:
Suspense head for PF Credit 50,000
Suspense Head for Transferor Division -Credit 50,000
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Operation of CIVIL head
Ministry of Railway also operating some accounting head in its accounts on the behalf of
Ministry of Finance, these heads are known as Civil heads. For instance, Income Tax, Service
Tax, Advance to employees, etc.
Other Accounting Facts
i. Treatment of TDS: Currently, the Divisions deduct TDS as per the provisions of the
Income Tax Act, 1961. However, same is not deposited directly to the income tax
department. A monthly summary is sent to the Zonal Head Quarter. Payment of TDS is
made at Railway Board level through ‘Inter Government Adjustment’. Also, the Divisions
files quarterly TDS returns with the help of professionals. Further, in the books of the
Divisions, TDS amount is accumulated till 31st March in relevant suspense head
corresponding to TDS. This account is nullified by transferring its balance to
‘Miscellaneous Government Account’ at the end of the financial year.
As per Indian Railway Code for Accounts Department Part I, “Misc. Government Account is
a major head no. 880, under L- suspense and miscellaneous (e) miscellaneous, and is
operated along with the following minor heads:
a. Ledger balance adjustment account; and
b. Write off from heads of accounts closing to balance.
This account will be used for closing of all heads of accounts, which do not record
Railway revenue or expenditure. The balances, if any, under the debt and remittance
heads, with the exception of ‘Transfer Railway’, however, are closed to ‘Balance’. The
transaction under the head ‘Transfer Railways’ will be closed to minor head of
‘Miscellaneous Government Account’, in the books of individual railways and to
‘Balance’ if there is any balance in the books of the Railway Board. The transactions
under the head ‘Deposits with Reserve Bank (Railways)’ will be closed to minor head of
‘Miscellaneous Government Account’.”
Sales Tax, which is deducted from the bills of the Contractors and technically known as
Works Contract Tax (WCT), is deposited to Government Account on a monthly basis
through a challan. At the time of deduction, the sales tax is recorded under relevant
suspense head pertaining to sales tax and at the time of payment the same head is
debited.
ii. Existing Classification and Codification Structure: Under the cash based government
accounting system followed by IR at present, income and expenditure are classified
based on the classification of expenditure rules prescribed in the ‘Indian Railways Finance
Code Volume – II (also known as F-2)’. In F-2, all the expenditures heads have been
segregated on the basis of various demands and as per the nature of expenditure. The
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revenue and capital expenditure is classified into 16 demands. It is to be noted that
budget is also prepared on the basis of this classification.
The essence of these demands can be understood as follows:
i. Demand 1 and 2 is for policy formulation which covers the expenditure of Railway
Board and Miscellaneous Expenditure (General);
ii. All working expenses are covered into Demand 3 to Demand 13;
iii. Appropriation to DRF and PF(Demand 14)
iv. Payment of Dividend etc. to General Revenues(Demand 15); and
v. All capital and other works Expenditure (Demand 16).
At present, all revenue working expenses are denoted by an 8 digit numerical code. The first
3 digits stand for demand no., next 3 digits for detailed head corresponding to demand and
last 2 digits denote the primary unit. For instance, salary of General Manager will be as
follows:
On the other hand, capital and other works expenditure are classified under Demand no. 16
for asset acquisition, construction and replacement. The accounting classification of the same
is in the form of 8digit/ 4 tier numerical code which is as follows:
i. The first tier of two digit numerical code indicates the source of fund viz. capital, DRF,
etc., as the case may be;
ii. The second tier of two digit numerical code represents the standard plan head. For
example, code 11 stands for New Lines (Construction);
iii. The third tier which is also numerical represents the two digit corresponds to the sub-
head and detailed head of classification giving the details of assets acquired,
constructed or replaced. For example, 41 stands for rails and fastenings; and
iv. The last tier of two digit depict the primary unit, i.e., object of the expenditure. For
Example, PU code 01 stands for pay and allowances of Departmental Establishment.
0 3 0 1 1 1 0 1
Stand for
Demand No. 3
Detailed head of demand
no. 3 represents officers
Establishment
Primary code
represents Salary
and wages.
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4.1.8 Auditing System
i. The Comptroller & Auditor
of Indian Railways and
& Auditor General (DAI).
headquarters level. The
below:
ii. As per instructions contained
(Administrative Vol.1)
and audit of financial sanctions
control accorded by MoR
authorities; sanctions pertaining
ensure that these are prepared
annual review of balances
of expenditure between
iii. Any irregularity which
report should also be sent
Rs.50,000/- as required
regard to adequacy of action
iv. Directors/Deputy Directors
important audit sections
v. PDA is further assisted
with special investigation/performance
level. SAO/AO work under
examination and audit of
of Railways at Divisions
vi. At the beginning of every
a test audit of transactions
Principal Director of Audit, Zonal Railways (Headquarters level)
Deputy Directors
Senior Audit Officers/Audit Officers (Division level)
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System
Auditor General of India is the final authority to
and this responsibility is discharged through Deputy
(DAI). DAI is assisted by Principal Director of Audit
The detailed organization chart of Railways Audit
contained in Para 132 to 138 of Manual
Principal Director of Audit (PDA) is responsible
sanctions pertaining to Railways and offices
MoR or the General Manager; estimates sanctioned
pertaining to local traffic; detailed accounts
prepared correctly and in proper form; internal
balances and appropriation accounts of Railways;
between two or more sections of railway, etc.
comes to the notice of an officer should be reported
sent of losses and embezzlements of cash or
under Para 1102- F (1). PDA also submits
action taken by investigating departments.
Directors who work under PDA are entrusted
sections and inspections.
assisted by Senior Audit Officers/Audit Officers,
investigation/performance audit cum efficiency audit,
under the personal direction of PDA. AO conducts
of accounts. He is also expected to carry out
Divisions Level and report thereon to PDA.
every financial year Audit officers prepare an Audit
transactions occurring monthly is carried out by the Audit
C & AG of India
Dy. C & AG of India
Principal Director of Audit, Zonal Railways (Headquarters level)
Deputy Directors
Senior Audit Officers/Audit Officers (Division level)
Assistant Directors
Directors/Principal Directors
Senior Administrative Officers/Administrative
Officers
Comprehensive Scope Evaluation Report
to conduct the audit
Deputy Comptroller
Audit (Railways) at
Audit Branch is given
Manual of Standards
responsible for scrutiny
offices under their audit
sanctioned by same
of the railways to
internal check system;
Railways; proper allocation
reported to DAI. A
or stores exceeding
a report to DAI in
entrusted with charge of
who are entrusted
audit, etc., at Divisions
conducts periodical
independent audit
Audit Plan. Usually,
Audit Officer.
Directors/Principal Directors
Senior Administrative Officers/Administrative
Officers
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vii. Audit of Debt head Reports and all Appropriation accounts is conducted on annual
basis. Audit of Suspense balances including store suspense and all arrear reports is
conducted on half-yearly basis.
viii. Audit department also carries out an audit of all proposals/tenders before sanction.
AO conducts scrutiny of all relevant documents, briefing notes, contract agreements,
etc., in regard to tenders.
ix. AO reports to PDA any material irregularity which is observed by him at any time
during audit of Railway Accounts. Reports made by AO are circulated with
supporting documents regarding any irregularity (if any).
x. Government of India can also order a Special Audit of Railway Accounts.
xi. For keeping a proper control over the subordinate units, PDA visits their subordinate
formations as well as important units of the Railway Administration like major
stations, Workshops and the sites of important works for review from time to time.
Important points noticed during these visits/ tours/ inspections are reported to
Headquarters office for information of DAI.
xii. The office of Comptroller and Auditor General emphasise on systematic training of
newly recruited Audit staff. The course covers all main principles of audit of all the
branches of Railway transactions such as Establishment, Engineering Works,
Workshops, Stores, etc., and the Code rules regulating them.
4.1.9 Budgeting System
Preparation of budget is one of the most important management tools for any Government
organisation. In Indian Railways, budget plays an important role. There is a laid down
system for the preparation and approval of budget in the Indian Railways. The process of
preparation of budget is as follows:
i. Every year, budget estimation is made by the each Senior Section Officer (SSO)/Senior
Section Engineer (SSE) of the department concerned for the requirement of funds
relating to their section. For example, SSE prepares the budget of engineering
department.
ii. Thereafter, it is sent for approval to the competent authority of the department
concerned.
iii. After approval of the Competent Authority, the budget is forwarded to the finance
department for vetting. The finance department evaluates the Budget Estimate on the
basis of various financial parameters.
iv. Once the Budget Estimate is vetted by the finance department, a sanction letter is
issued by the finance department in multiple copies, which is forwarded to the various
departments concerned which in turn send the sanction letter to DRM if it is related to
mini law book matters, to Headquarters for matters related to Law book and to
Railway Board if it is related to Pink Book for further approval.
v. There is a system of review of the estimates on the basis of an actual expenditure of
three months in the month of August, in the month of November based on the actual
expenditure of first the Six months and final budget in the month of December.
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4.1.10 Mapping of Current Process at Divisional Office
The mapping of accounting processes refers to the activities involved in defining exactly
how an accounting process is carried out in an entity and what records are maintained to
capture the transactions. The ICAI ARF team has carried out the mapping of current
accounting processes in Indian Railways separately for a Division, Traffic Accounts Office
and Workshop in order to understand the components of the existing accounting system;
the extent of prudence and propriety of the system in place and to find out the gaps in the
present system from the viewpoint of implementation of accrual based accounting system.
Following table depicts the accounting process of various transactions at a Division:
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Accounting of Revenue Receipts
1 Railway
Recruitment Board
(RRB) Receipts
All recruitment in Indian Railways is made through RRB/RRC/UPSC.
Periodically, RRB publishes advertisements for recruitment.
The recruitment process is centralized, i.e., RRB can advertise for
recruitment in any Zonal Railways.
Candidates apply to the post according to their qualification/age/location
within the prescribed time frame along with applicable fees (either in
IPO or DD) and necessary documents.
The application is sent to the RRB concerned.
RRB office collects all the applications as per their selection criteria.
DDs/IPOs are segregated separately.
IPOs/DDs are sent to the designated Cash Office with all the relevant
details as applicable.
Cash Office deposits all the DDs to the respective Indian Railways Bank
accounts in the designated bank through Treasury Remittance (TR) Note.
IPO is deposited into designated post office. Post office issues cheque for
the amount of IPOs deposited after deducting charges (if any). This
cheque is also deposited into bank through TR Note.
Cash Office sends details of all cheques/DDs to the books section
concerned along with TR note for the purpose of recording and
compilation.
Book section passes the following entry to record the transaction :
Suspense Head-Remittance into bank DR xxx
Accounting
Accounting entry is passed in
Books Section.
Books & Register Maintained
1. Reconciliation into Bank
(RIB) Cash Book.
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To Major head 1001- Misc. Rec
Earning Head for RRB receipts
CR xxx
Finally, amount of this receipt is depicted in 'Revenue Account
Current' under the head ‘Misc. Receipts’.
2 Land Licence
Fees/ Building
Rent
Indian Railways earns revenue by giving its Land & Buildings on rent.
Revenue generated from land given on rent is termed as Land Licence
fees.
Land & Buildings are given on rent only after approval of competent
authority. Licence fees for the lands are determined by executive section
based on extant rules.
At present, accretion in license fees for land is to be done at the
prescribed rates.
Building rent is revised every 5 years on the basis of DLC rate applicable
for the land on which the building is constructed.
Periodically, expenditure section prepares bill in a prescribed format in
three copies for recovery of Land licence fee/Building Rent and forwards
one copy to the party concerned for payment, one copy to executive
section and one copy for their records.
If there is any anomaly in the bill then same is returned by parties to
Expenditure section for correction.
Expenditure section makes necessary correction and forwards the same
to the party for payment.
Parties make the payment by cheque/DDs to the Expenditure section.
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
i. Demands Recoverable
Register.
ii. RIB Cash Book.
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Expenditure section forwards these cheques/DDs to designated Cash
Office with CR Note.
Cash Office deposits all the cheques and DDs to the IR Account through
TR note.
Subsequently the Cash Office sends details to Books Section for
recording.
Books section transfers the earning to Traffic Accounts Office by passing
the following journal voucher in their books of account:
Suspense Head -Remittance into bank DR Xxx
To Suspense Head-
Transfer Divisional TAO
CR Xxx
Finally, this amount is shown under the head ‘’Transfer Divisional” in
Revenue Account Current.
Subsequently TAO books the earning under the relevant accounting
head.
3 Way Leave
Charges
Way leave is the facility given by Indian Railways to other Government
Departments/Private companies by providing them the right of way
over/under the railway track. For example, giving facility to BSNL for
laying cables under the tracks.
At present, way leave charges are recovered from the party concerned in
advance of 10 years.
Engineering section is responsible for monitoring the recovery of way leave
Accounting
Accounting entry is passed in
Books Section.
Books & Registers
Maintained
i. Bills Recoverable
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charges.
Periodically, engineering section raises demand note for the recovery of way
leave charges and forwards this note to Expenditure section.
Expenditure section checks the demand note and sends it to the party
concerned for payment.
If parties find any anomaly in the demand note than it is returned to
Engineering section via Expenditure section.
Parties make the payment as per the terms and conditions in the prescribed
mode, i.e., cheques/DDs.
After receipt of payment from parties, Expenditure section forwards these
cheques/DDs to designated cash office through CR Note.
Cash Office deposits all the cheques and DDs in the IR Account through TR
note.
Cash Office sends all the details along with TR Note to Books Section for
recording.
Books section of the Divisions transfers the earning to Traffic Accounts
Office by passing the following journal voucher in their the books of account:
Suspense Head Remittance into bank DR Xxx
To Suspense Head
Transfer Divisional TAO
CR Xxx
Finally, this amount is shown under the head ‘’Transfer Divisional” in
Register.
ii. RIB Cash Book.
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Revenue Account Current.
Subsequently, TAO records the entry under the relevant accounting head.
4 Siding Charges/
Foreign Service
Contribution (FSC)
Charges
Siding is the facility provided by Indian Railways to third parties in the
structure of laying track from any station to their business premises to
facilitate loading and unloading of goods.
As per Code : An Assisted/Private Siding is a siding constructed to serve a
Government Department, a factory, mill, industry, mine or other private
party. The user of the siding has to pay to the Railway a Siding charge to
be fixed by the Railway Administration from time to time for every wagon
whether loaded or empty hauled over the siding in each direction.
If a Siding has been provided with complete facilities for direct reception
and despatch of trains and such trams do not require to be dealt with at
the station from which the Siding takes off/serving station but run
through to or from the Siding with railway locomotive or originate from
or terminate in the exchange/peripheral yard provided by the siding
holder, the Railway Administration shall have the powers of levying
freight charges on through distance basis up to the buffer end of the
Siding or the farthest point of the Exchange Yard, instead of levying
freight charges up to the serving station and Siding charges for haulage of
wagon over the Sidings.
The cost of siding is either borne by the party or by Indian Railways.
However if IR bears the cost then the same is recovered from parties in the
mode of siding charges.
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
1.
ills Recoverable Register.
2.
IB Cash Book.
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In addition to this, if Indian Railways provides any personnel for
maintenance of tracks, etc., then the salary of such staff is also recovered
from parties in the form of Foreign Service Contribution (FSC) charges.
FSC charges are revised as per the revision of salary of personnel engaged
on the siding.
Divisional Personal Officer (DPO) and Divisional Finance Manager (DFM)
are responsible for the recovery of FSC charges while Engineering section
is responsible for the recovery of siding charges.
Both offices prepare the demand note for the recovery of FSC
charges/siding charges and forward it to the Expenditure section.
Expenditure section checks the demand note in every aspect and sends it
to the party concerned for payment.
If parties find any anomaly in the demand note, then it is returned to the
section concerned via expenditure section.
Parties make the payment as per the terms and conditions of the
agreement, in the form of Cheque/DD.
Expenditure section forwards these cheques/DDs to designated Cash
Office through CR Note.
Cash Office deposits all the cheques and DDs in the respective Railways
Account in the designated bank through TR Note.
Cash Office sends details along with TR Note to Books section for
recording.
Books section transfers the earning to Traffic Accounts Office by passing
the following journal voucher in their the books of account:
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Suspense Head Remittance into bank DR Xxx
To Suspense Head
Transfer Divisional TAO
CR Xxx
Finally, this amount is depicted under the head ‘’Transfer Divisional” in
Revenue Account Current.
Subsequently, TAO records the entries under the relevant accounting
head.
Accounting for Employee Benefits
1 House Building
Advance/ Pay &
TA Advances/
Computer
Advances/ Scooter
advance
There are two types of advances granted by Indian Railways to its
employees, one is interest bearing and the other is non-interest bearing.
At present, only Pay & TA advance is non-interest bearing.
Following are the interest bearing advances:
i. Car Advance;
ii. Scooter advance/motor advance;
iii. House Building Advance; and
iv. Computer Advance.
The advances are given to employees as per extant rules.
An employee, who is willing to take an advance, makes an application in
the prescribed format to the competent authority.
Advance is sanctioned by head of the department concerned subject to
availability of funds. For example, if an employee of Accounts department
wants to avail HBA then it will be sanctioned by the head of the Accounts
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
1. Suspense register of civil
advance
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department, i.e. FA&CAO. Accounts department estimates the total
amount required for each type of advance.
This estimation is sent to the Zonal Head Quarter while sending Revised
Estimates of Budget.
Zonal Head quarter allots the amount for the disbursement of advances.
This grant is called Civil Grant. A separate grant is released for each type
of advance. For instance, grant received for HBA cannot be used for
payment of car advance or vice versa.
If the amount is adequate for the disbursement towards all applications
made then the same is disbursed to all applicants. However, if amount is
not adequate then the advance is disbursed on the basis of application
first made.
A Pay order is made in the name of the employee for the payment of
advance.
Normal payment process is followed for making of payment. Following
entry is passed while making payment:
Suspense Head corresponding to Advance DR Xxx
To Suspense Head Cheques & Bills CR Xxx
Recovery is initiated from the salary of the employee from the following
month. In case of an interest bearing advance, recovery of interest is
initiated after recovery of principle which is restricted to maximum 60
instalments.
At the time of recovery of principle from the salary of the employee,
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following entry is passed to record the transaction in the Books of
account.
Salary head for Relevant Demand DR Xxx
To Suspense Head corresponding to
advance (Recovery of Advance)
CR Xxx
To Suspense Head Cheques
& Bills (Payment of Salary)
CR Xxx
While at the time of recovery of interest following entry is passed to record the
transaction in the Books of accounts:
Salary head for relevant Demand DR Xxx
To Suspense Head corresponding to
Interest (Recovery of Interest)
CR Xxx
To Suspense Head Cheques & Bills
(Payment of Salary)
CR Xxx
In case of transfer of employee, balance amount is transferred to
concerned accounting unit through E-RECON/ now IPAS and necessary
journal voucher is passed in both accounting units.
2 Payment of Salary
For the purpose of payment of salary, the Division is divided into Bill
units. The Executive/ Personnel section for each Bill unit is responsible for
Accounting
Accounting entry passed in
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preparing the salary of the employees of that bill unit.
The personnel are appointed in each Bill unit as per applicable cadre
norms/rules. Number of employees in each cadre cannot exceed the
sanctioned strength limit.
The Bill unit prepares salary bills for the payment of salary and forwards
it to Executive/Personnel section every month.
Designated personnel of executive section feed all salary bills in IPAS.
CO6 of each salary bill is made.
The Establishment section of the Accounts Department checks the salary
bills in terms of amount of salary, deductions to be made from salaries,
etc.
If any anomaly is found in a salary bill, then the same is returned to the
concerned Bill unit for correction.
If bill is found correct in all respect, CO7 of salary bill is made, i.e., salary
bill is passed as per allocation head.
After the CO7 is prepared, the bill is again checked by Senior Section
Officer concerned in terms of allocation, etc. if any correction is required,
bill is returned to Establishment section otherwise it is sent to Books
section for preparation of cheque abstract.
After preparation of cheque abstract, this entry is reflected in the Revenue
Account Current and as well as Cash Book.
Generally, payment of salary is made through RTGS/NEFT. However in
some cases individual cheque is also issued.
If payment is made by RTGS/NEFT, a consolidated cheque is prepared
and sent to Bank along with Bank account details of all employees to
Books Section.
Books & Registers
Maintained
1. Salary and allowance
register (R.No.69)
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whom salary is to be paid.
If individual cheque is issued then same is sent to Cash Office from where
the cheque is dispatched by appropriate mode.
Following entry is passed at the time of making payment of salary to
record the transaction:
Expenditure head-Salary head for corresponding
to Demand
DR XXX
To suspense head Cheques & Bills (net
Payment Amount)
CR XXX
To Statutory recovery (TDS) CR XXX
To HBA/Car/Scooter Advance Recovery CR XXX
To PF Recovery CR XXX
To other recovery (if any) CR XXX
3 State Railway
Provident Fund
As per State Railway Provident Fund Rules, all employees, other than
those covered under New Pension System, after a continuous service of
one year are eligible to subscribe the SRP Fund.
This fund is non-contributory, i.e., employer does not make any
contribution to this fund.
Minimum contribution to this fund is 8.33% of basic salary. However,
employee may also make a voluntary contribution of any amount to this
fund in addition to the minimum contribution subject to the maximum
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
1. Records of individual
employees are maintained
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limit that the amount should not be more than the amount remaining after
recoveries.
While processing salary for each month, employee contribution for SRPF
is deducted. Following accounting entry is passed while deducting the PF
amount from salary:
Salary head for corresponding to Demand DR XXX
To suspense head Cheques & Bills
(net Payment Amount)
CR XXX
To Suspense Head SRPF CR XXX
To other recovery (if any) CR XXX
SRPF payment
SRPF payment may be divided into two parts:
a) Advances and withdrawal
b) Final Payment
Advances & Withdrawals
Any permanent withdrawals can be made from the fund as per stipulated
Rule. Otherwise, only temporary withdrawal is allowed.
For making any withdrawal, whether temporary/permanent against
SRPF, employee makes an application in prescribed format to the head of
the department (HOD).
in individual files and also
in IPAS software.
2. Records are maintained in
PF Ledger.
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HOD forwards this application to Divisional Personnel Officer (DPO) for
necessary action. PF applications of accounts staff are processed by
Accounts Department itself.
Eligibility for withdrawal is determined after verification of the
application vis-à-vis the extant rules and sanction given by DPO. The
same is then sent to the PF section for arranging payment.
CO6 is registered for payment and normal payment process is followed.
Following entry is passed while making the payment to record the
transaction:
Suspense Head SRPF DR XXX
To suspense head Cheques & Bills
(net Payment Amount)
CR XXX
Recovery from salary is to be made if the withdrawal is temporary.
Following entry is passed at the time of recovery of SRPF advance/loan:
Salary head for corresponding to Demand DR XXX
To suspense head Cheques & Bills
(net Payment Amount)
CR XXX
To Suspense Head SRPF CR XXX
To other recovery (if Any) CR XXX
Interest at stipulated, rates presently @ 8.70%, is paid to employees on
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their monthly PF balances. Following entry is passed while crediting the
interest on SRPF account:
Suspense Head Transfer Divisional Head
Quarter
DR XXX
To Suspense Head SRPF CR XXX
4 Group Insurance
Scheme
Employee ‘Group Insurance Scheme is governed by ‘Central Government
Employee Group Insurance Scheme’.
The benefit of this scheme is available only to regular Railway employees,
i.e., benefit is not available to contractual employees/workers.
While processing the salary for each month, a nominal amount as
applicable towards premium is deducted from the salary of employees
every month. Following accounting entry is passed to record the
transaction:
Salary head for corresponding to Demand DR XXX
To Suspense head Cheques & Bills
(net Payment Amount)
CR XXX
To GIS premium- MH 0022 CR XXX
The amount so collected towards GIS premium is transferred to GOI
through ‘Inter Government Adjustment’
At the time of death of employees, death benefit is paid as per entitlement
Accounting
Accounting entry passed in
Books Section.
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under the rules.
At the time of retirement, employee gets accumulated amount as per the
calculation table applicable for this purpose as issued by Central
Government.
At the time of making payment either on death or retirement, following
entry is passed:
Major Head for GIS- 0022 DR XXX
To Cheques & Bills CR XXX
At the end of the financial year, this head is closed by transferring its
balance to ‘Misc. Government Account’ as per Codal provision.
5 New Pension
Scheme
New Pension Scheme (NPS) is applicable with effect from 01.01.2004. It is
defined as contributory pension scheme where both employees as well
employer contribute to the pension fund.
Employee makes contribution @ 10% of basic pay and DA which is to be
recovered from their salary as per prescribed rules. The Government
matches this with an identical contribution into the pension fund.
A unique permanent retirement account number (PRAN) is allotted to
each employee.
While processing the salary every month, employee’s contribution
towards NPS is deducted from salary. Following entry is passed to record
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
1. Employees wise NPS data
files
2. Statement of transactions
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this transaction:
Exp Head Salary head corresponding to Demand DR XXX
To suspense head of Cheques & Bills (net
Payment Amount)
CR XXX
To suspense head for employee
Contribution to NPS- Major head -0071
CR XXX
For employer’s contribution to NPS, following entry is passed:
Corresponding Head of Demand 13 DR XXX
To suspense head of employer ‘s
Contribution to NPS- Major head- 0071
CR XXX
Thereafter, payment of employer’s contribution as well as employee’s
contribution is made to the Trustee Bank at designated place. Following
entry is passed at the time of making payment
Suspense Head – Employee cont. NPS MH- 0071 DR XXX
Suspense Head – Employer cont. NPS MH-0071 DR XXX
To suspense head Cheques & Bills CR XXX
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6 Pension Benefit There is a centralized pension department in Divisions for pension benefit
to employees.
There are two types of retirement, one is Normal and the other is Other
than Normal. In normal retirement, employee retires after completion of
service at the maximum age specified for retirement. However, in other
than normal retirement, employee may take retirement as per his
convenience.
In case of other than normal retirement, employees would be eligible for
pension only when he retires after completing 20 years of qualifying
service.
In case of normal retirement, all the relevant documents relating to
pension are submitted by employees before 3 months of retirement.
Pension is calculated on basis of Last basic pay plus grade pay.
For payment of pension, a Pension Payment Order (PPO) is generated at
the Divisional accounting unit which is counter signed by competent
authority.
Commutation of pension is also allowed at the request of employee
according to the prescribed rules.
PPO along with all relevant documents is sent to the designated bank for
payment.
Following accounting entry is passed to record the transaction in the Books of
accounts:
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
1. Employees wise pension
file
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Concerned head of Demand No 13 for Pension DR XXX
To suspense head Cheques & Bills CR XXX
7 Staff Benefit Fund There is a staff benefit fund in Indian Railways. This fund is used for
Railway employees for the following purposes:
i. Higher education of children
ii. Provide assistance to differently abled children
iii. Sports activities, etc.
The fund is provided to and is managed by Staff Benefit Committees
nominated by competent authorities.
Employees give applications in prescribed format to competent authority
for granting assistance from staff benefit fund.
Competent authority determines assistance available to each employee on
the basis of number of applications received, availability of fund and
applicable norms/rules.
Payment is arranged as per the discretion of the Staff Benefit Committee.
Accounting
Accounting entry passed in
Books Section.
Books & Registers
maintained
1. SBF Register by Staff
Benefit Committees
Accounting for Liabilities
1 Indian Railways
Deposits
Indian Railways deposit is a liability head. There are several deposit
heads which constitute Railways Deposit, some of them are:
i. Deposit Misc. – Establishment: Salary which is not claimed by employee
or otherwise is recorded in Deposit Misc. E. and following entry is passed
to record this transaction:
Remittance into bank DR XXX
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
1. Deposit E- Register
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To suspense head Dep Misc. E-
unclaimed salary
CR XXX
At the time of claim, after necessary approval and verification, pay order
in the name of employee is generated and following entry is passed:
Suspense head Dep Misc. E- unclaimed salary DR XXX
To suspense head Cheques & Bills CR XXX
If the amount is not claimed within 3 years it is transferred to SBF
Account.
ii. Deposit Misc. Works: Indian Railways undertakes various types of
deposit works on behalf of other Government institutions/private parties.
Before starting any work, cost estimation is prepared by section
concerned. This cost estimation also includes departmental charges at a
specified rate of the estimated cost.
This cost estimation is given to the Institution/Department/Party
concerned for payment.
Thereafter, the Institution/Department/Party pays the amount as per
the terms & conditions of the contract. Following entry is passed to
record this transaction:
2. Deposit W- Register
3. Deposit X- Register
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Remittance into bank DR XXX
To suspense head Deposit Misc. W CR XXX
The amount so received is accounted for in the Deposit Works Register.
Separate ledgers are opened in the Register for each deposit work.
Any amount which is incurred on particular deposit work is adjusted
against Deposit Misc. W. Following entry is passed while making a
payment against a particular deposit work:
Suspense head Deposit Misc. W DR XXX
To suspense head Cheques & Bills CR XXX
iii. Deposit Misc. Expenditure: Deposit expenditure includes Earnest money
deposit/security deposit received from contractors/suppliers. At the time of
tendering, contractors/suppliers apply along with appropriate EMD/SD as per
terms & condition mentioned in the advertisement. Following entry is passed
at the time of receiving EMD/SD:
Remittance into bank DR XXX
To suspense head Deposit Misc.-Exp.
- EMD/SD
CR XXX
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After completion of work, SD is returned to concerned contractor/supplier
upon request. Following entry is passed at the time of making payment of
SD/EMD:
Suspense head deposit Misc.-Exp. - EMD/SD DR XXX
To suspense head Cheques & Bills CR XXX
If contractors/supplier does not claim security deposit for more than 3
years then the same is transferred to earnings.
2 Sales Tax/ Works
contract tax
Division deducts WCT/sales tax on the works contract according to the
statutory requirement.
While deducting sales tax, the following entry is passed:
Relevant demand corresponding to expenditure DR XXX
To suspense head Deposit Misc.-
WCT/Sales tax
CR XXX
Sales Tax/WCT so deducted is deposited with the designated Government
department within prescribed time. Following entry is passed to record
the transaction:
Suspense head Dep. Misc. WCT/Sales tax DR XXX
To suspense head Cheques & Bill CR XXX
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
1. Sales tax/Works contract
tax file
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# Transactions Process Accounting and
Records
Maintained
Miscellaneous Accounting Transactions
1 Transfers
Divisional
Transfers divisional depict the transaction within various accounting
units in a Zonal Railway.
All transfer transactions take place through a Transfer Certificate (TC); all
the transfer transactions with in the railways are raised through E-
RECON/ IPAS software. All the TCs are raised and accepted
electronically.
To record the transactions in the Books of accounts both accounting units
pass Journal Vouchers.
All transactions for a particular period are shown under ‘Transfers
Divisional’ in ‘Account Current’.
Any inter Zonal transaction between accounting units takes place through
Head Quarters.
Books & Registers
Maintained
1. TC/ATC Register
2 Transfers Railway
Capital
If any revenue expenditure has been booked initially under capital head
or vice versa, then this expenditure needs to be transferred to the relevant
head of account. Such transfers come under the head Transfer Railway
Capital. For Instance, purchase of fuel is revenue expenditure but at the
time of purchase it is booked under capital head.
At present, Fuel is purchased at Head Quarter level, thereafter it is
transferred to divisions/workshop and debit is given to unit concerned.
The following entry is passed in Head Quarter’s books at the time of
purchasing fuel:
Accounting
Accounting entry passed in
Books Section.
Books & Registers
Maintained
1. Journal Voucher file
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# Transactions Process Accounting and
Records
Maintained
Store Suspense Head DR XXX
To suspense head Cheques & Bills CR XXX
Head Quarter raises a debit on Divisions through a TC for fuel used by
Divisions. After acceptance of the TC by Divisions, the following entry is
passed in Head Quarter’s books:
Suspense head Transfer Divisional Divisions -CR XXX
To Store suspense head CR XXX
On the other hand, division passes the following entry in their books of
accounts to record the transaction:
Store suspense head DR XXX
To suspense head Transfer Divisional
head quarter
CR XXX
As purchase of fuel is revenue expenditure and initially booked under store
suspense, which is a capital suspense head; a journal entry/voucher is required
to be passed for transfer from capital to revenue. Following journal entry is
passed in capital account:
Transfer revenue (00878292) DR XXX
Store suspense head CR XXX
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# Transactions Process Accounting and
Records
Maintained
Following journal voucher will be passed in revenue account:
Relevant demand DR XXX
Transfer capital (00878291) CR XXX
3 Imprest Imprest is given by Indian Railways to its officers to meet out petty
expenditure as per the prescribed rules.
The officer entitled to an imprest makes an application to the competent
authority.
After financial vetting and sanction by competent authority, a pay order is
issued in the name of employee/officer.
A bank account is opened for every imprest holder and an ATM card is
provided to the imprest holder.
At the time of disbursing imprest amount following entry is passed:
Suspense Head for Imprest (00867201) DR XXX
To Cheques & Bills (00867002) CR XXX
Periodically, upon submission of bill imprest amount is recouped to the
extent of bills submitted. Following entry is passed upon submission of
bill and recoupment of imprest amount:
Relevant head of concerned demand DR XXX
To Cheques & Bills CR XXX
Accounting
Accounting entry passed in
Books Section.
Books & Register maintained
1. Imprest Ledger
2. Expenditure Register
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# Transactions Process Accounting and
Records
Maintained
4 Demands Payable This is a suspense head that records the revenue liabilities incurred and
the actual discharge of such liabilities, when payment is made. Balance
under this head will always be a credit figure, representing outstanding
revenue liabilities.
A separate account is kept for the purpose. However, at present this head
is mostly operated for salary payable that too only for the salary for the
month of March which is paid in April. This head is operated in the month
of March in order to bring the liabilities towards salary in the same
financial year. (Some Railways operate this account every month, some
only in yearend.)
Following accounting entry is passed at March end:
Relevant Demand Head DR XXX
To Demands Payable CR XXX
Following entry is passed upon submission of bill and actual payment of bill
in April:
Demands Payable DR XXX
To Cheques & Bills CR XXX
Accounting
Accounting entry passed in
Books Section.
Books & Register maintained
1. Demand Payable register
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4.2 Workshop
4.2.1 Introduction
Workshops are independent
engaged in overhauling, repairs
certain manufacturing activities
4.2.2 Organizational
4.2.3 General Organizational
In small workshops, the Accounts Offices are headed by Sr. AFA/W&S or AFA/W&S.
Personnel
Dy. CPO
APO (Carriage)
APO (ADL &W)
Electrical
Dy. CEE (W&S)
DEE (MOD)
AEE (PR)
Deputy Financial Advisor and Chief Accounts Officer (works
Senior Section Officer
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independent accounting units of Indian Railways, which
repairs and maintenance of rolling stocks. They
activities sometimes.
Structure of Workshop
Organizational Structure of Accounts Department
In small workshops, the Accounts Offices are headed by Sr. AFA/W&S or AFA/W&S.
Chief Workshop Manager
AEE (PR)
Mechanical
Dy. CME (L)
WM (DSL) / PE (L)
AWM (DSL) / APE
(L)
Dy. CME(C)
AMM
PE (C)
Accounts
Dy. FA & CAO (W &
S)
Sr. AFA/W&S
AFA/W&S
Deputy Financial Advisor and Chief Accounts Officer (works
and Stores)
Senior AFA (W & S )
AFA ( W&S )
Senior Section Officer for each section
Accounts Assistant
Junior Accounts Assistant
Accounts Clerk
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which are primarily
They also carry out
Department in a Workshop
In small workshops, the Accounts Offices are headed by Sr. AFA/W&S or AFA/W&S.
Stores
Dy. CMM
DMM AII
SMM
AMM
Signal
WM
AM
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4.2.4 Type of Works Performed in a Workshop
i. Rolling Stock Programme: The Rolling Stock Programme approved by Railway Board
lays down works for improvement or modernisation of Locomotives, Carriages and Wagons
(hereinafter referred as the rolling stock).These works are carried out by the Workshops. For
example, if there is a work of changing iron sheet of wagons into steel sheets, then the same
would be done within this programme.
ii. Periodical Overhauling Work (POH): The Locomotives, Carriages and Wagons have a
prescribed schedule of overhauling which is known as POH. A Workshop is primarily
dedicated to POH related works and manufacturing in a few cases. When any
Locomotive/Coach/Wagon is overhauled, the next due date for POH is also specifically
mentioned on each rolling stock. The Rolling Stock is sent to the nearest workshop for POH
whenever it falls due. Separate cost is identified for each overhauling.
iii. Non Periodic Overhauling Work: Overhauling, other than routine is known as NPOH.
iv. Special Repair (SR): Under this type of programme, repairs or maintenance of rolling
stock is done under special circumstances, which is due to some damage or happening of a
sudden event, which leads to breakdown of rolling stock. For example, overhauling of a
Coach/ Wagon/ Loco damaged in an accident.
v. Deposit work: These are works that are done by the Workshops for private parties and
various other Government organizations. For example, laying of cables for BSNL.
Generally, this work is done at cost (departmental charges) but no profit is charged in such
type of deposit works by the workshop.
4.2.5 Departments in a Workshop
Normally, there are seven departments in a workshop. Each department has its own sphere
of responsibility. Working of each department as follows:
i. Mechanical: The Mechanical department monitors all types of repair, maintenance and
manufacturing work that is carried out on the rolling stock.
ii. Electrical: This department carries out every type of electrical work whether related to
electrification of coach, wagon, diesel locomotive or administration.
iii. Personnel: This department deals with the service matters of employees like
recruitment of new employees, transfer and promotion of existing employees, etc. This
department also deals in making policies relating to establishment office and staff
matters.
iv. Printing Press: This department is dedicated for any work relating to printing of
stationery for the Zonal Railway. Earlier, Railway tickets were also printed but now this
is discontinued.
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v. Stores: Stores department is engaged in purchase and issue of various items as per
requirement. There are two types of purchase, which are made by stores:
a. Purchase of Stock items: Stock items include all materials which are required on
regular basis. For example, machinery parts required on routine basis, etc.
b. Purchase of Non Stock items: Items other than stock items are known as Non Stock
item, i.e., item which is not required on a regular basis. For example, computer,
furniture, etc.
Other than purchase and issue of various stock items, stores department also
undertakes sale of scrap/discarded/condemned assets.
vi. Signal: Activities of this department are related to various manufacturing, repair and
maintenance of signalling and safety equipment. Work of this unit is related with
signalling and safety. Apart from this, manufacturing is also done on a small scale.
vii. Accounts: This department is responsible for works relating to accounting and
compilation for the purpose of generating necessary financial information. For example,
recording of all vouchers relating to Income and Expenditure to find out the cost or any
other relevant information for decision making.
4.2.6 Workshop Manufacturing Suspense (WMS) Account or Workshop Account
Current
It is a monthly statement showing total expenditure made on overhauling/maintenance of
Rolling Stock or any Capital Repairs like MLR, Re-cabling, etc. for a particular period. It is
prepared by every unit of a workshop, i.e. locomotive, carriage, electrical, signal. After
compilation of these monthly statements, a financial review report is prepared. This
statement has following two sides, i.e., Debit Side and Credit Side.
i. Debit Side: Debit side of the statement contains the following items:
a. Labour payments - from labour schedule;
b. Store material - from daily issue notes; and
c. On cost charges of labour and store both.
ii. Credit Side: Credit side of statement has following items:
a. Transfer of manufacturing items from one workshop to another;
b. Items returned to store;
c. Amount of work done for other Zonal Railways; and
d. Amount of work done for other Workshops.
Labour and Store amount is entered from Workshop General Register and all the credits are
obtained from the Outturn statement. All credits to other Workshops/Divisions is done
through Journal Voucher entries. Closing Balance of WMS is transferred to capital account
current.
For example, a workshop conducted a POH for the rolling stock of a division. Following
entry will be passed in workshop to record this transaction:
Transfer Division DR Xxx
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4.2.7 Workshop Genera
This register is prepared every
and credit is given for return
railways or other workshops.
4.2.8 Outturn Statement
This is the statement which
relating to the credit side of Workshop
the Outturn statement WMS
Workshop General Register
month. These JV relate to various
4.2.9 Fixed Assets
Proper recording of fixed assets
for recording of Fixed Assets
and Rolling Stock. Every addition
Step 1
•Work order wisework order.
•Summarised notesS-2702.
Step 2
•Data of Time sheet
•Data of summarised
Step 3•Total of Labour
Step 4
•Credit is given for Stores returned and other manufacturing sale to other Workshops through DS 8 and P 10 form
Step 5
•Finally the total of labour schedule, bonus, on cost charges, stores returned and manufacturing sale is enetered in WGR
To Workshop Manufacturing Suspense Account
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General Register (WGR)
every month under which all labour and store
returned stores and sale of minor manufacturing
Following steps are taken while preparation
Statement
which records all types of Journal Voucher (JV’s)
Workshop Manufacturing Suspense account.
account is prepared. In this statement total
is also entered on the basis of total JV’s
various POH done for various divisions, workshops,
assets is important for every organization. There
Assets in a Workshop. A register is maintained for
addition or deletion in rolling stock or Plant
wise time sheet is prepared for all the direct labour
notes of store is prepared for store related expenses
sheet is entered in labour sub ledger.
summarised notes of stores is entered in stores sub- ledger
sub ledger and stores sub ledger is transferred
Credit is given for Stores returned and other manufacturing sale to other Workshops through DS 8 and P 10 form
Finally the total of labour schedule, bonus, on cost charges, stores returned and manufacturing sale is enetered in WGR
To Workshop Manufacturing Suspense Account CR
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charges are added
manufacturing items to foreign
preparation of WGR:
(JV’s) entries passed
account. With the help of
total of credit side of
passed during the
workshops, etc.
here is no fixed format
for Plant, Machinery
Plant & machinery is
labour engaged in each
expenses under the form
ledger.
transferred to labour schedule.
Credit is given for Stores returned and other manufacturing sale to other
Finally the total of labour schedule, bonus, on cost charges, stores returned and
Xxx
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recorded in this Register. Monthly capital account current is prepared for all the additions
and deletions on assets and from that Block account is prepared in which opening value,
addition and deletion value of assets is written.
At present, no depreciation is charged directly on any assets. However, each year Indian
Railways contributes a certain amount to the Depreciation Reserve Fund (DRF) in relation to
the expenditure on renewal and replacement of assets. This contribution is determined by
the “Railway Convention Committee”. Further, Workshop does not create any provision for
impairment of assets.
4.2.10 Store Department
It is one of the most important Departments in a Workshop. All stores accounting relating to
a workshop is done here. There are various stores depots under a Stores department. For
instance:
i. General Stores Depot,
ii. Carriage Stores Depot;
iii. Wagon Stores Depot;
iv. Signal Stores Depot;
v. Diesel Stores Depot;
vi. Railway Printing Press;
vii. Diesel Stores Depot;
viii. Divisional Stores Depot; and
ix. Electrical Production, etc.
Further, a centralized store also exists at HQ level. Following activities are undertaken by
the Stores Department:
i. Purchase of Stock;
ii. Manufacturing;
iii. Transfer to Shop or consignee;
iv. Depot to Depot transfer;
v. Stores Returned; and
vi. Sale of scrap, etc.
The following process is followed in the Store Department:
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A material request is sent by
material is available in the depot
available in the Stores Depot,
i. Purchase;
ii. Depot transfer;
iii. Returned stores; and
iv. Manufacturing (if possible).
Once the material is available
shop/department. Issue note is
to the consignee, third copy is
Accounts Department. The Accounts
after making necessary accounting
Issue Note.
TC (Transfer Certificate) is
against the consignee with a credit
is also issued by the consignee
JV is passed and the same is
the end of the month then the
If there is any difference in the
reflected in Stock Adjustment
generated by depot and periodically,
consigner, date of purchase, type
Note.
Requistion by the shop
or concerned deptt for
material to the depot
Issue from
Depot
Issue of
Issue note by
depot
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by the shop or department concerned to the S
depot then the same is issued to the department.
then the material is procured through the following
possible).
available in the Stores Depot then the same
is generated for every issue in five copies. Two
is retained at the depot, fourth and fifth copies
Accounts Department returns the fifth copy
accounting entries. All the details of the request
generated by the Accounts Department and
credit to the Stores Department. Advice Transfer
consignee at the time of receipt of material. Based upon
reflected in the Account Current. If the material
the same is reflected in the Stores Suspense.
the Receipt Note and Issue Note of material
Adjustment Account. Whenever material is issued,
periodically, it is sent to Accounts Department.
type of material, value of material, etc., are written
Issue
Issue
depot
Receipt by the
concerned Deptt
Entry of
receipt in
Issue note
Issue of TC and ATC by accounts
deptt
Making of JV for
the issue and
receipt at depot
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Stores Depot. If the
department. If it is not
following methods:
is issued to the
Two copies are sent
copies are sent to the
copy to the consignee
request are entered in the
and debit is raised
Transfer Credit (ATC)
upon TC and ATC, a
material is in transit at
material then the same is
issued, an issue note is
Department. All the details of
written on the Issue
Making of monthly summary register
depot wise
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4.2.11 Methods of Procurement of Material
i. Indigenous Purchase: All the indigenous purchase is made at Zonal Headquarters. All
the demands are vetted by Finance Department at the Zonal Headquarters. For the
indigenous purchases tenders are issued by Zonal Headquarters. Thereafter, a purchase
order is issued to the successful bidder. The purchase order contains all the details of
procurement and terms and conditions of payment. After that material is received by the
depot/consignee directly and Receipt Note is issued after verifying the purchase order and
actual quantity received at the depot. If any discrepancy is found between Receipt Note and
purchase order then, the payment is made as per the Receipt Note. However, these
discrepancies may be resolved later when the supplier approaches the Stores Department.
ii. Import: All the imports are made at Railway Board level. Railway Board issues the
purchase order for the import as and when Zonal Headquarters sends a request.
iii. Local Purchase: Local purchases contain any purchase which is made by the workshop
locally like general items of day to day consumption, etc. Further, payment is made at local
level.
Indigenous procurement and imports are generally made for stock items. Further, some
purchases are also made from Directorate General of Supplies & Disposals (DGS&D) but
these purchases are restricted to stock items only.
When there is shortage of any stock item, firstly, the stock item is checked in all other Stores
Depots of other Zonal Railways. If sufficient quantity is found in any one of these stores
then shortage can be made good from that store.
There is also a concept of Slow Moving and dead stock in Stores. An item is treated as slow
moving when it is not issued for two years. This is done automatically through the MMIS
application. Further, an item is classified as dead stock when it is not issued for three years.
Either dead stock is sold as scrap or transferred to other Store Depot after getting the
approval of the Competent Authority.
4.2.12 Illustrations on Stores Accounting
Illustration-1: If Depot (General Store) receives any material from supplier then following
entry is passed, 20716105 is a centralized allocation for stores and in narration depot number
is entered:
20716105 (Store Allocation) Stores in Stock DR Xxx
Cheques and bills CR Xxx
Illustration-2: If the store department issues any stock to any other depot then following
entry will be passed:
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(+) Debit to Suspense
(-) Debiting the
(+) Debit to receiving
(-) Debiting Suspense
Illustration-3: If the store department
entry will be passed:
Consignee (Division
20716105 ( Store
Ilustration-4: If after utilisation
consignee to the depot then the
4.3 Traffic Accounts Office
Accounting for revenue is done
Generally, there is only one TAO
Book and Revenue Accounts
classification of earnings. The
under:
Sundry Earnings
20716105 (Store Allocation) Depot
To the consignee
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Suspense Account DR xxx
the issuing depot CR
receiving depot DR xxx
Suspense account CR
department issues any stock to any consignee
(Division ) DR xxx
Store Allocation) CR
utilisation of stock there remains any item which
the following entry will be passed:
Office
done at the Traffic Account Office (TAO) of each
TAO in each zone. TAO records earnings and
Accounts of the Railway. IR follows Finance Code
The major heads for recording of earnings can
Earnings of Traffic
Accounts
Earnings from Coaching -Passengers
Earnings from Coaching -Other than Passengers
Earnings from Goods
Sundry Earnings
20716105 (Store Allocation) Depot DR xxx
To the consignee CR
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Xxx
Xxx
then the following
Xxx
is returned by the
each Zonal Railway.
earnings and compiles Traffic
Volume-II for the
can be understood as
Earnings from
Other than
Xxx
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Every Railway station prepares
of 10 days and sends it to the
followings dates:
i. For collection made during
ii. For collection made during
iii. For collection made during
The organization structure of
4.3.1 Station Balance
The earnings collected at the stations
the station which is prepared
Station Balance Sheet contains
balance sheet is of two types:
i. Coaching Balance sheet
passenger traffic. This is
illustrative items on the debit
a. Amount received from sale
b. Amount received from Passenger
c. Amount received as Service
Financial Advisor and Chief Account Officer/ Traffic Accounts
Deputy Financial Advisor & Chief Account Officer/ T.A
Senior Assistant Financial Advisor
Senior Section officer
Accounts Assistant
Junior Accounts Assistant
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prepares a separate statement for its originating earnings
the Statistical Branch of the TAO of the Zonal
during 1st to 10th day of the month 13th day of
during 11th to -20th days of the month 23th day of
during 21st day to month-end 3rd day of
the TAO may be understood from the following
Sheet
stations of a Zonal Railway are depicted in the
prepared by the Station Master and submitted to the
contains the receipts and payments of a particular station.
: Coaching balance sheet is compilation of
divided into debit and credit sides. Following
debit side of a Coaching Balance Sheet:
sale of Unreserved Ticketing;
Passenger Reservation System (PRS);
Service Tax on PRS ;
Financial Advisor and Chief Account Officer/ Traffic Accounts
Deputy Financial Advisor & Chief Account Officer/ T.A
Senior Assistant Financial Advisor Assistant Financial Advisor
Senior Section officer
Accounts Assistant
Junior Accounts Assistant
Accounts Clerk
Senior Travelling Inspector of Accounts
Scope Evaluation Report
earnings for a period
Zonal Railways on the
of the month
of the month
the next month
following figure:
the Balance Sheet of
the TAO concerned.
station. The station
the earnings from
Following are some of the
Senior Travelling Inspector of Accounts
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d. Amount received from Halt Stations; and
e. Amount received from parcel, luggage, LT luggage and TTE/EFT.
On the credit side the following items (illustrative) are presented:
a. Voucher received against sale of tickets. For example Military warrant, AG voucher,
CRPF voucher, etc.;
b. Refund made on cancellation of tickets;
c. Withdrawals from station earnings for petty expenses such as funeral of beggar, etc.;
d. Date wise detail of Cash Remittance to Cash Office; and
e. Any special credit allowed by competent authority.
ii. Goods Balance sheet: Goods Balance Sheet depicts the income from goods traffic. It has
two sides, i.e., debit and credit. Debit side of Balance Sheet includes the following
(illustrative):
a. Receipts from goods traffic originating with in Zonal Railway;
b. Receipts from wharfage charges from Public as well as Railways;
c. Receipts from demurrage charges; and
d. Receipts from goods traffic other than Zonal Railway on account of under charges
collected.
On the credit side of Goods Balance sheet the following are included (illustrative not
exhaustive):
a. Waiver of demurrage charges;
b. Cash remitted to Cash Office; and
c. Amount withdrawn for petty expenses.
Basically, the debit side represents the earning of a Station and the credit side represents the
remittances.
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4.3.2 Mapping of Accounting Processes at Traffic Accounts Office (TAO)4
ICAI ARF Team conducted a detailed study on how revenue is booked in accounts. The mapping of recording of revenue processes refers to
the activities involved in defining exactly the process followed by Indian Railways to record revenue. ICAI ARF team carried out the
mapping of current accounting process at Traffic Accounts Office to understand the components of the existing accounting system in a TAO:
S. No. Transactions Process Accounting and Records
Maintained
1 Station
Earning
From
Coaching -
Passengers
Generally, earnings from Coaching- Passenger are that portion of earning which is
earned from carrying passengers. From the recording perspective, earning from
passengers is categorized as under:
i. Sale of Unreserved Tickets;
ii. Printed Season Tickets;
iii. Passenger Reservation System (PRS) Tickets;
iv. Special Tickets, etc.
Reserved tickets as well as unreserved tickets are sold from stations for cash or in lieu
of cash/vouchers/warrants. Here, voucher/warrants mean facility of free travelling or
travelling at concessional fare given by various Government departments to their
employees. For example, travelling warrant issued by Ministry of Defence to the
Military.
Passenger tickets are issued either by Unreserved Ticketing System (UTS) or Passenger
Reservation System (PRS) or booking window (Printed Card Tickets).
There is a Chief Reservation Supervisor (CRS) at each railway station who is
accountable for monitoring of revenue from the reserved passenger tickets.
There is also a Chief Booking Supervisor (CBS) at every station who is responsible for
monitoring of all type of receipt collected at station under his/her jurisdiction, whether
it belongs to tickets, parcel or miscellaneous.
Books & Registers
Maintained
1. Coaching Balance sheet
4 Based on our study carried out at Traffic Account Office, Ajmer
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S. No. Transactions Process Accounting and Records
Maintained
All collections made on a particular day are deposited into designated bank on the next
working day under the supervision of CBS vide a Treasury Remittance (TR) Note.
Thereafter, the acknowledged TR notes are sent to Cash Office concerned. The Cash
Office prepares the daily Cash Check sheet and sends the same along with the TR notes
to TAO for accountal.
TAO records all TR notes, date wise, into Remittance into Bank Register and reconciles
it with monthly statements received from banks through RIB reconciliation application.
However, in case of some stations, cash is not directly deposited by them into Bank.
They send cash periodically to Cash Office of Division concerned in a sealed cash box
through scheduled trains under supervision.
Thereafter, cash is counted in presence of Cash witnesses. Cash office is responsible for
depositing this cash into the Bank account of Indian Railways. After depositing the
cash, Cash Office sends a Treasury Remittance note (TR Note) to TAO.
Station Superintendent of each railway station is responsible for preparing and sending
its monthly Coaching Balance Sheet to TAO.
Every month, the Balance Sheet Section in TAO receives Coaching Balance Sheets of all
stations.
All the balance sheets so received are checked in all respects by the Balance Sheet
section.
In some cases, if Balance Sheet of any station is not received within the prescribed time,
then on the basis of statement/returns submitted by that station, an approximate
balance sheet is prepared. However necessary adjustment is made on receiving the
actual Balance Sheet.
Thereafter all the Balance Sheets are posted for consolidation and recording purpose.
Following journal entry is passed to record the earning from passenger traffic by
section concerned:
Traffic Accounts DR XXX
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S. No. Transactions Process Accounting and Records
Maintained
To Abstract ‘X’ Earning from Coaching –
Passenger
CR XXX
2 Station
Earning
from
coaching –
other than
passenger
Earning, which is earned from activities other than passenger traffic is classified as
earning from coaching – other than passenger. For example, earning from carrying of
parcels, luggage, Fine/penalty charged by TTE from passenger, etc.
Booking of parcels/luggage is made only on cash payment.
There is a Chief Parcel supervisor (CPS) at the station, who is responsible for booking
of other coaching earnings.
Details of earning from coaching – other than passenger are also sent in the Coaching
balance sheet.
The subsequent process is similar to the process followed for passenger coaching. And
following accounting entry is passed by concerned section to record the earning:
Traffic Accounts DR XXX
To Abstract ‘X’ Earning from
Coaching – other than Passengers
CR XXX
Books & Register
Maintained
1. Coaching balance
sheet
3 Earning
from goods
traffic
Earning from goods traffic includes that part of earning which is to be received from carriage
of goods. The process of recording of revenue from carriage of goods is different from that of
carriage of passenger. We may understand this as given below:
Revenue from carriage of goods is not generated at every station; it is generated only
on some stations notified for handling of goods traffic/siding, etc.
Presently, earning from goods is recorded by generating invoice through TMS
(Terminal Management System) which is developed by CRIS. This software is linked to
the party’s Bank account and Bank Guarantee.
Whenever any invoice is raised on a party, the software informs about the bank
balance available in the party’s account. If balance available in party’s account is
equivalent to invoice amount, then the same is debited to party’s bank accounts and
receipt is generated.
Books & Register
Maintained
1. Goods balance
sheet
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If sufficient balance equivalent to invoice amount, is not available in the party’s Bank
account then invoice is generated with ‘To pay’ direction and the same is recovered
from party at the destination station before making delivery of goods and a To Pay
surcharge is charged from the customer.
Station Superintendents are responsible to send their monthly Station Balance Sheet to
section concerned in TAO.
All the Balance sheets so received are checked in all respects by the Balance Sheet
section.
In some cases, if Balance sheet of any station is not received within the time prescribed,
then, on the basis of statement/returns submitted by that station, an approximate
balance sheet is prepared. However, necessary adjustment is made on receiving the
actual Balance Sheet.
Thereafter, all the balance sheets are posted in relevant software for consolidation and
recording purpose.
Demurrage & wharfage charges are also levied on the party if the goods lying at the
station and are not cleared within the time allowed for clearance.
Demurrage/wharfage charges so levied are also reflected in the monthly Station
Balance Sheet.
Following journal entry is passed to record the earning from passenger traffic by the
concern section:
Traffic Accounts DR XXX
To Abstract ‘Y’ Earning from Goods Traffic CR XXX
4 Sundry other
earnings
Earning other than goods carriage and passenger carriage are grouped into sundry
earnings. For example, rent and toll, sale proceeds from damaged goods, sale proceeds
from scrapped items, advertisement fees, etc.
The process to record the sundry earning in accounts is the same as mentioned above
for recording earnings from passenger carriage. Following entry is passed to record
Books & Registers
maintained
1. Abstract Z
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the transaction in the books of accounts:
Traffic Accounts DR XXX
To Abstract ‘Z’ Sundry Other Earnings CR XXX
Traffic Accounts also receives transfer credit (TC) from Workshops/Divisions in respect
of certain revenue/earnings which were initially recorded in Workshop/Division’s
books of accounts. For example; Electricity charges recovered, tender fees, licence fee,
etc. At the end of a particular period, Workshops/Divisions transfer these earnings to
TAO. Following entry is passed in the concerned section of TAO to record this
transaction:
Concerned Workshop/Division -CR XXX
To Abstract ‘Z’ Sundry other Earning CR XXX
Misc. Transactions process
1 Receipt from
military
warrants
A special facility is given by Ministry of Defence to its employees to travel either free of
cost or at concessional fare. For this purpose, Ministry of Defence issues military
warrants to its employees.
Indian Railways issues ticket to military personnel against such warrants.
Subsequently, Indian Railways raises bills and recovers amount from the respective
Controller of Defence Accounts (CDA).
The Military warrants received by stations are sent to Divisional Cash Office and then
they are forwarded to the Traffic Accounts Office.
Thereafter warrants are sorted CDA wise a list is prepared in the prescribed form.
On the basis of this list, Transfer Advice (TRA) is raised on concerned department.
Following entry is passed by concerned section in TAO:
Concerned CDA Adjustment account DR XXX
Accounting
The Accounting entries are
passed by Books-I section
of Traffic Accounts Office.
Records Maintained for
Accounting
1. Military Warrant
Register
2. Concession Voucher
Register
3. Daily Figure Register
4. Journal Slip and
Transfer Advice (TRA)
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Maintained
To Respective Head of Earning CR XXX
After receiving the amount from concerned CDA, HQ sends information to Traffic
Account Office. Following entry is passed at that time:
Transfer Divisional (HQs) -CR XXX
To concerned CDA adjustment Account CR XXX
File
2 Receipts
from
voucher/war
rants – other
than
military
Some other Government department/ministries also provide facility of
free/concessional travel. For example, CRPF, police departments of various states, BSF,
CISF, etc. For this purpose, these departments issue travel voucher/warrants.
Indian Railways issues tickets against these vouchers/warrants.
These vouchers come to TAO for sorting department wise.
Thereafter a bill is raised on the department concerned in prescribed formats and
following entry is passed:
PAO Concerned Department/ Ministry DR XXX
To respective head of earning CR XXX
On receipt of payment from all departments/ministries following entry is passed.
Remittance into Banks DR XXX
To Concerned Department/Ministry CR XXX
Accounting
The Accounting entries are
passed by Books-I section
of Traffic Accounts Office.
Books & Register
Maintained
1. Account General
Register
2. Pay & account office
register
3 Indian
Railways
Deposit
(Deposit
Traffic
Book)
In TAO, Indian Railways Deposit includes the following :(only illustrative list)
i. Wagon Registration Fees: Advance received from the parties against the booking of
wagon is called Wagon Registration Fees. Initially it is recorded in the respective
income head. Following entry is passed to transfer this amount, from earning to
deposit book:
Accounting
The Accounting entries are
passed by Books section of
Traffic Accounts Office.
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Abstract ‘Y’ Earning from goods DR XXX
To Deposit Misc. - Traffic Book CR XXX
If the party does not use the wagon as booked on a particular date then this amount
received as advance is forfeited and transferred to earning by passing following entry:
Deposit Misc. - Traffic Book DR XXX
To Abstract ‘Y’ Earning from goods CR XXX
If the party uses the wagon as booked then money so received as advance is adjusted
against the amount receivable from party. Following entry is passed:
Deposit Misc. - Traffic Book DR XXX
To Abstract ‘Y’ Earning from goods CR XXX
However, in some cases advance is not adjusted against the amount receivable from
party but it is refunded separately on the refund claim lodged by the party. Following
entry is passed:
Deposit Misc. - Traffic Book DR XXX
To suspense head Cheques &Bills CR XXX
If the party does not claim the amount of advance for more than 3 years then same is
transferred to earnings and following entry is passed:
Deposit Misc. - Traffic Book DR XXX
To Abstract ‘Y’ Earning from goods CR XXX
Books & Register
Maintained
1. Deposit
Book/Register
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ii. Carriage Deposit: Advance received from the parties against the booking of special
Train/Coach is called Carriage Deposit. Initially, it is recorded in the respective income
head. Following entry is passed to transfer this amount, from earning to deposit book:
Abstract ‘X’ Earning from passenger DR XXX
To Deposit Misc. - Traffic Book CR XXX
If the party uses the special Train/Coach, then money so received as advance is not
adjusted with the fare amount. However, this advance can be adjusted against any
additional amount to be charged. For example, detention of train beyond the normal
hours allowed. Following entry is passed:
Deposit Misc. - Traffic Book DR XXX
To Abstract ‘X’ Earning from passenger CR XXX
The amount received as carriage deposit is refunded to the party upon the claim
lodged and following entry is passed:
Deposit Misc. - Traffic Book DR XXX
To suspense head Cheques & Bills CR XXX
If the party does not claim the amount of advance for more than 3 years then the same
is transferred to earnings and following entry is passed:
Deposit Misc. - Traffic Book DR XXX
To Abstract ‘X’ Earning from passenger CR XXX
4 Traffic
Suspense
Traffic Accounts is debited with all earnings and is credited with realised earnings.
Traffic suspense shows all outstanding amounts which are to be received. The effect of
Books & Register
Maintained
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traffic suspense is taken in preparation of Account Current. It includes cash in transit,
station outstanding, demand recoverable, etc.
1. Traffic Suspense
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4.3.3 Compilation of Traffic Book
Traffic book is compiled to bring into account all earnings of the Zonal Railway. Traffic book
consists of following parts:
Part A: Part A is prepared on the basis of balance sheet sent by station superintendent and
shows all traffic earnings consisting of Goods, Coaching and Sundry Earning for the Zonal
Railway.
Part B: This part of traffic book consists of net result of revenue apportionment. All the
earning which is to be recorded in part A (as mentioned above), also has some portion
which is required to be apportioned to foreign railways (Other than Home Railway).Earning
which belongs to other Zonal Railway is apportioned.. At present, this apportionment takes
place through RITES according to the formulas and methodology adopted for this purpose.
At the end of each month, RITES sends revenue apportionment detail to each Zonal Railway
separately for both goods and passengers.
Part C: This part is the “Statement of Earning Compilation for the Month” in which the
following adjustments are taken into consideration:
Adjustment of the Diversion of goods;
Adjustment of over charge and under charge of Accounts office balance sheet;
Adjustment of foreign railways or deposit private companies;
Adjustment of the inward and outward transfer certificate, etc.
Part D: This is the “Statement showing the apportioned earnings” and it is prepared after
making the adjustment of the Part C in the following format:
Commercial Lines Strategic Lines Combined Lines
Passenger Earnings xxx xxx xxx
Other than Coaching Earnings xxx xxx xxx
Goods Earnings xxx xxx xxx
Sundry other Earnings xxx xxx xxx
Gross Earnings xxx xxx xxx
Adjustment of Suspense xxx xxx xxx
Gross Total Receipts xxx xxx xxx
The Traffic Books section of Headquarter is also responsible to prepare the Actual and
Approximate “Statement of Apportioned Earning position at a glance for and to end of the
month” and submit the same to Books section of Head Quarter, for compilation of Accounts
for submission to Railway Board and for the preparation of the Financial Review for
managerial review by 5th of the following month. The Financial Review is that statement
which contains the details of earnings and expenditures for the month. Every month the
Budget section of Head Quarter, prepares this statement on the basis of details of earnings
provided by Books section of Head Quarter, and the details of expenditure is taken from the
Consolidated Account Current of the Zone. The Financial Review is prepared on two bases,
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i.e., demand wise and primary unit wise. At last the Financial Review is uploaded on E-
Lekha portal.
Also, the Traffic Books section of Head Quarter compiles the Abstract-Z for sundry earnings
on the basis of details received from TAO and further it is submitted to the Railway Board.
Earning from Special Tourist Trains5
The Indian Railways has a contract with Rajasthan Tourism Development Corporation
(RTDC) to run the train named as “Palace on Wheel” and Rajasthan Royal on Wheel”.
a. Palace on Wheel (POW) – As per the Memorandum of Understanding between Indian
Railways and Rajasthan Tourism Development Corporation the earnings received from
“Palace on wheel” will be shared in the ratio of 56:44 respectively. As per the terms the
RTDC is required to pay the prescribed amount as an advance at the beginning of the each
quarter and at the end of the quarter a statement of earnings is submitted to Indian
Railways. If the RTDC fails to pay the amount on time then the interest will be charged at
the prescribed rate.
b. Rajasthan Royal on Wheels (RROW) – As per the Memorandum of Understanding
between Indian Railways and Rajasthan Tourism Development Corporation, the RTDC is
required to pay only Haulage charges to Indian Railways per Km. per trip in case of
Rajasthan Royal on Wheels. The Prescribed amount is to be paid by RTDC to Indian
Railways in advance before starting any trip/tour.
The Traffic Miscellaneous and Service tax Section (TMSS) deals with the earnings received
for the tourist trains like Rajasthan Royal on Wheels (RROW), Palace on Wheel (POW), etc.,
and service tax.
On the receipt of the cheque of advance amount from the RTDC the TMS Section advices
this amount through letter to the TAO, Ajmer. And the TAO, Ajmer passes the following
entry:
Relevant Suspense Head for NWR HQ (00878201) DR XXX
To Abstract ‘X’ Earning from Coaching –
Passenger
CR XXX
Quarterly statements of earnings are also received by this section from RTDC, on the basis of
this the outstanding amount from the RTDC is identified and advices to the TAO, Ajmer.
The TAO, Ajmer records the outstanding of RTDC in the Traffic Suspense under the head
“Account office balance sheet-tourist”. This outstanding amount does not include the
amount of interest. And also for this purpose no accounting entry is passed at TAO, Ajmer
as well as at head quarter, Jaipur.
5 Only for North Western Railway
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The Monthly details of Service tax are received by TMS section from all the units of NWR
zone in the prescribed format. This format contains all the services for which the NWR zone
is registered with Service tax department. TMS section verifies the information of service tax
with the data available at Books section, HQ and prepares the excel file to compile all the
data of service tax. This compiled data is handed over to the Professionals to file the Service
tax returns within the prescribed time.
Diversion of Coal
Whenever coal of any thermal power is not delivered by the Indian Railways due to some
abnormal reasons like natural calamity, agitation etc., at the destination point as per the
original Railway receipt is known as “Diversion of Coal”.
For instance, as per the Railway Receipt, the coal of a thermal power was to be delivered at
zone A whereas it is delivered at zone B. Now zone A will raise the Transfer Certificate to
the zone B and pass the following entry on the acceptance of TC:
Transfer Railway-Zone A(008797) DR XXX
To suspense head of Cheques and bills
(00867002)
CR XXX
On the other hand, when the Transfer certificate of zone A is accepted by the zone B, the
zone B will pass the following entry:
Relevant suspense head of concerned demand
(12111199)
DR XXX
To Transfer Railway-zone A(008797) CR XXX
Compensations and Claims
The Finance Compensation Claims (FCC) section of TAO is responsible to pay the
compensation for the claims lodged. There are two types of cases for which claims may be
lodged:
1) Accidental Cases – These cases are filed with the Railway Claims Tribunal.
2) Other than accidental cases such as refund of freight, damages/loss in transit, etc. – These
cases may be filed with the appropriate authority of the commercial department of the
Indian Railways as well as with the Railway Claim Tribunal.
Presently, on the final judgement the commercial department hands over the file of claim
along with the pay order to the finance compensation claims section of TAO. This section
studies the claims file in all respect and checks the accuracy of compensation with the final
judgement to pass/approve the pay order. If there is no anomaly in the claim as well as pay
order then the FCC section proceeds for the procedure of CO6, CO7 and Cheque Abstract.
At the time of payment following entry is passed:
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Corresponding Head of Demand 12 ( 12025299) DR XXX
To suspense head of Cheques and bills (00867002) CR XXX
To suspense head of TDS (000021029) CR XXX
Sometimes the Railway Claim Tribunal (RCT) /High court pass interim orders and advise to
deposit the amount with the court before passing the final judgement. In this case following
entry is passed:
Corresponding Suspense Head of Demand 12 (12111199) DR XXX
To suspense head of Cheques and bills (00867002) CR XXX
To suspense head of TDS (000021029) CR XXX
4.4 Other Accounting at Zonal Railway Headquarter
4.4.1 Study of Fuel at HQ Level
Expenditure on fuel procurement forms one of the largest components of expenditure in
Indian Railways. Data pertaining to procurement of fuel is maintained in Store Accounts
Branch. Management of Fuel Account is the key function of Stores Account Branch at the
Zonal as well as Divisional level. Basically three main sub sections are operated by store
accounts branch with regard to recording and settlement of fuel transactions namely:
1. Fuel Bill Passing section: In this section, fuel bills are received and pre -scrutinized on
the basis of purchase order. After exercising the above check, pay order is prepared and
approved by the Stores Accounts Officer and sent for payment to cash & pay section.
2. Fuel Suspense section: The job of this section is to maintain procurement and issuance
of Fuel and accounting of the same through the Stores Suspense account. This section
accounts for HSD oil (Traction) received by RDI’s and raises debit to concerned division for
its prime cost. It is a capital suspense head which get cleared as and when the bills received,
are passed by the Fuel Bill Passing section.
3. Gross Tonne Kilometre (GTKM)/ HSD Section: This section performs two main
functions i.e. Accountal of GTKM earned by foreign locos on home railways and Accountal
of HSD taken by home locos from foreign Railways through transfer certificate (TC) which is
approved by home Railways at Zonal level. GTKM is the derivative unit of services. It is
used to calculate the value of services provided by locos of home Railway to foreign Railway
or vice versa. The net GTKM (receivable or payable) is adjusted in the fuel head booked
Fuel Bill Passing Section
Fuel Suspense Section
Gross Tonne Kilometre
(GTKM)/ HSD Section
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under Demand No. 10 including debits of home Railway locos involving HSD oil receipt
from foreign Railway.
4.4.1.1 Railways Diesel Installations (RDI)
Railway Diesel Installation (RDI) stores HSD in high capacity storage tanks for further
supply to locos. Locos take HSD at fuelling station at the platform which is connected to a
storage tank installed in RDI through a pipe line. There are two types of fuelling stations in
Indian Railways based on purpose of consumption of fuel. These are as under:
1. Traction: Fuelling station meant for consumption only for Locomotives are categorized
as Traction RDI’s.
2. Non Traction: Fuelling station meant for consumption for purposes other than
Locomotives. (For example: Consumption of fuel in workshops or loco sheds)
4.4.1.2 Procedure for Procurement of Fuel:
Procurement of fuel is done through a rate contract (RC) which is made between Railway
Board and Oil companies through tenders which are invited and executed by Railway
Board.
Rate contract (RC) – The Rate contract is a rate agreement with a certain stock obligation on
the supplier. During the period of its currency, the supplier engages to supply on demand at
a monthly price list (MPL), irrespective of quantity at a price within a given period of the
receipt of such demand. There are four major companies which are empanelled by Railway
Board for procurement of fuel:
1. Indian Oil Corporation Limited (IOCL)
2. Bharat Petroleum Corporation Limited (BPCL)
3. Hindustan Petroleum Corporation Limited (HPCL)
4. Reliance Petroleum Limited (RPL)
Procurement of fuel is done on the basis of an RC executed by Railway Board. On the basis
of the RC, the Controller of Stores (COS) of a Zonal Railway issues the purchase order (PO)
RDI-wise and payment of the same is made on the basis of Monthly Price List (MPL) which
is issued by oil companies. Freight expenses are included in MPL, which are paid by the
Zonal Railways as per the nearest point. However, minimum round trip distance (RTD) of
39 kilometre freight has to be paid to the oil company.
4.4.1.3 Procurement of Fuel by RDI’s
HSD oil is being received at the RDI’s by tank wagon and / or road tanks / pipe lines.
Considering the location of RDI’s and the location the feeding depot of the supplying oil
company, Zonal Railways may formulate the mode of transportation and the detailed
procedure of receipts as per current valid R.C. If both Rail and Road alternatives are
available, preference has to be given to obtaining supply of HSD oil by Road.
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Decanting of HSD oil from tank wagon / Road tank trucks is undertaken during day time,
decanting is not permitted after the sunset, unless extreme urgency warrants so, the urgency
of decanting oil after sunset is to be certified by the Sr. DME.
Sample test from the each road tank truck and / or tank wagon with water soluble paste
must be carried out before decanting and dip reading of the tank wagon (s) and road tank
truck(s) are to be meticulously taken and recorded before decanting.
Decanting of HSD oil is done to the storage tanks. Decanting of oil into empty barrels
(except for drawl of samples) or to locomotives directly is not permitted.
Wherever the supply of HSD oil to RDI is exclusively done by road, a level platform is made
for placement of road tank truck. Good approach road is also made available to RDIs by the
Railways. Decanting of such road tank truck is personally inspected by a gazetted officer at
least once in two months to ascertain that the instructions and Accountal procedure are
being properly followed. Before decanting, 10-15 minutes setting time is permitted.
As soon as a tank wagon is placed in the siding of decanting line, the supplier’s seals at the
top and bottom are checked. If they appear tampered with or missing, an immediate joint
inspection by representatives of mechanical, traffic and security department is conducted,
the actual quantity assessed in their presence by dip measurement and appropriate record is
made. Oil Company is also to be intimated.
In some RDI’s, receipt of HSD oil is made directly through a pipe line from the oil
company’s depot. In such case, the measurement of quantity is done as per the latest
replacement agreement. The received quantity is recorded in the presence of representatives
of the RDI and Oil Company.
RDI in charge is authorized to maintain the fuel accounts in RDI. Fuel stock register is
maintained for the said purpose on daily basis and accordingly the requirement/demand is
placed keeping in view the schedule of locos going forward.
The Oil Company sends fuel to the RDI as per their requirement. Generally 5 to 7 day’s
minimum stock is kept in RDI’s. After receiving the fuel, the Senior Section Engineer (SSE)
concerned checks the quality of fuel vis-à-vis the specification and receives 10 copies of the
bill from the Company and verifies and stamps all the copies. 2 copies are retained by RDI, 3
copies sent to the Zonal office (one copy for finance, one copy for Fuel suspense and one
copy retained as office copy by bill passing section), and remaining copies are sent back to
the oil Company concerned.
4.4.1.4 Fuel Issued to Loco:
Fuel is issued by RDI’s to Home locos as well as Foreign Locos as per requirement and
urgency. In case of foreign loco, confirmation of Registration no. and Zone details of Foreign
Loco have to be received by SSE concerned of RDI.
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Issue of HSD oil is to invariably
flow meter an associate pipe
railway cost.
Issue of HSD oil to the locomotives
flow meter is calibrated and is
per the flow meter reading. The
for maintaining book balance
Zone is authorized with the
locomotives. A CCR (DSL) is
loco should be filled by RDI at
noted by loco pilot in engine
Further, a fuel trip card is also
of HSD and the balance fuel available
Procurement of fuel by RDI’s,
unit of the same explained in
Rates of issue of stock to locos
Fuel is issued to locos as per
adjustment account at the year
Home Loco procure from
Home RDI
Accounting at Divisional level
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invariably undertaken through a calibrated flow meter.
pipeline etc., if metered, will be provided by Oil
locomotives is accounted by the flow meter reading.
is in working condition all Accountal records
The flow meter total recording is to be noted
and cross checking with the ground balance
the instruction of minimum & maximum quantit
is also posted in control room of each division.
at all fuelling points as per fixed schedule. The
engine log book, which is maintained since the
also maintained by the pilot. This document provides
available in the loco at the time of fuelling.
RDI’s, issue of fuel to various Locos and the responsible
the following diagram:
locos
per weighted average rate and the same is settled
year end.
Procurement of Fuel by RDI
Issue of Fuel by RDI- Following
cases
Home Loco procure from
Home RDI
Accounting at Divisional level
Foreign Loco Procure from
Home RDI
Accounting done at Divisional level through outward
TC
Home Loco Procure from Foreign RDI
Accounting done at Zonal level
through inward TC
Scope Evaluation Report
meter. Any standby
Oil Company at the
reading. Wherever the
records on issue side is as
noted out on every shift
balance measured by dip.
quantity of HSD in
division. The tank of the
The quantity is also
loco is put to use.
provides the fuelling
responsible accounting
settled though Fuel
Home Loco Procure from Foreign RDI
Accounting done at Zonal level
through inward TC
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4.4.1.5 Accountal of Fuel
Cost of fuel is divided into two components:
1. Prime cost
2. Other than Prime cost
Prime Cost: This involves only prime cost of diesel. The payment is made by Zonal
Headquarters office after checking Monthly price list (MPL) and prime cost is charged
against capital plan head 71 in head of allocation 20713509 of suspense head. Dividend is
paid to Government of India against stock available as on 31stMarch of every year on the
capital held. In case of Prime cost Transfer certificate is issued for debit by Head office to
Divisions concerned on 7thof the consequent month.
Other Than Prime Cost: This involves all Taxes, delivery charges and freight, etc. Other
than prime cost is charged directly to revenue expenditure in the account of Division
concerned through a cash transfer certificate on the 7th of the consequent month.
Accountal of Fuel is done at four stages:
1. Procurement of fuel by Traction RDIs
2. Issue of Fuel by Traction RDI’s to Locos
3. Procurement and Issue of Fuel by Non Traction RDIs to Workshops/Divisions/ Sheds
4. Accountal of loss of fuel
1. Accounting of Procurement of fuel by Traction RDI’s:
1.1 In the Zonal Headquarters’ Books
RDI submits details of receipt of fuel every month on the 7th day of the next following month
and in case of March details are sent on the last day of the same month, i.e., 31st March.
The following entry is passed at the time of receipt of fuel at RDI:
Particulars DR. CR.
Concerned Division A/c (Prime Cost) XXX
To Fuel Suspense A/c (20713509) XXX
(Being fuel receipt at RDI)
At the time of payment of fuel procured in RDI’s
Particulars DR. CR.
Fuel suspense A/c (Prime Cost) XXX
Concerned Division A/c (Other than prime cost) XXX
To Cheques and Bills A/c XXX
(Being payment made for the fuel)
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1.2 In the books of concerned Division
At the time of receipt of Fuel
Particulars DR. CR.
Fuel suspense A/c(7160) – Capital A/c (Prime Cost) XXX
Demand no. 10 - Revenue A/c (Other than prime cost) XXX
To Zonal Railway A/c XXX
(Being Transfer certificate raised by zone)
2. Accounting of issue of fuel by Traction RDI’s to Locos
Issue of Fuel can be explained in following three scenarios:
2.1 Case 1: Home locos takes fuel from home RDIs
Journal entry in Concerned Division Books
Particulars DR. CR.
Demand no 10 – Fuel Head XXX
To Fuel Suspense A/c (7160) (Prime Cost) XXX
(Being fuel cost expensed off with suspense account)
2.2 Case2: Home locos take fuel from foreign RDIs
In this case, home railway will be issued debit T.C by foreign railways.
Journal entry in Zonal Books
Particulars DR. CR.
Fuel Suspense A/c (00844506) (Total Cost) XXX
To Concerned Foreign Railway XXX
(Being fuel taken by home loco at Foreign RDI)
Particulars DR. CR.
Demand no. 10 – Fuel head (Total Cost) XXX
To Fuel Suspense A/c (00844506) XXX
(Being fuel cost expensed off)
Note: prime and other than prime cost posted in separate sub head mentioned in Demand 10
2.3 Case 3: Foreign Locos takes fuel from Home RDIs
In this case home railways will issue debit T.C to foreign railways
Journal entry in Concerned Division Books
Particulars DR. CR.
Concerned Foreign Railway A/c XXX
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To Fuel Suspense A/c (Prime Cost) XXX
To Demand no 10 (Other than Prime Cost) XXX
(Being Transfer Certificate raised)
3. Procurement and issue of fuel by Non Traction RDIs to Workshop/ Divisions:
The fuel of non traction RDIs is utilized for other than traction purpose. It is known as
charged store. The bill received from oil companies duly acknowledged by concerned RDIs,
is passed by fuel bill passing section and is directly debited to division concerned transfer
head through Transfer certificate (TC). Following accounting entries are passed in this
regard:
3.1 At the time of procurement of fuel: In Zonal Books
Particulars DR. CR.
Concerned Division A/c XXX
To Fuel Suspense A/c XXX
(Being procurement of fuel done by RDI)
3.2 At the time of payment of fuel: In Zonal Books
Particulars DR. CR.
Fuel Suspense A/c XXX
To Cheques and Bills A/c XXX
(Being disbursement of fuel cost)
3.3 At the time of procurement of fuel: In Division Books
Particulars DR. CR.
Fuel Suspense A/c (7160) XXX
To Zone A/c XXX
(Being procurement of fuel cost other than for loco’s )
3.4 At the time of issue of fuel: In Division Books
Particulars DR. CR.
Respective Demand heads (Other than D 10) XXX
To Fuel Suspense A/c (7160) (Prime Cost) XXX
(Being fuel cost other than for loco’s expensed off)
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4. Accountal of loss in fuel:
The Permissible limit as approved is 0.1% under the terms of 6.2 of (journal Procedure
Order) JPO of Railway Board dated 09.03.2010, of the Fuel stock in RDI, waiver of which is
duly authorized by the Mechanical Department. In case, loss of fuel is higher than the
permissible limit, waiver of the fuel loss will be done by the General Manager of the Zonal
Railway.
4.1 Journal Entry for Waiver of Abnormal loss on fuel in Divisional Books:
Particulars DR. CR.
Demand no 10 (Loss Head 10118099) XXX
To Fuel Suspense A/c (Prime Cost) XXX
To Demand no. 10 (Non- Prime cost) XXX
(Being loss on fuel waived off)
4.4.1.6 Recording of GTKM/HSD oil:
GTKM is the derivative unit of services. It is used to calculate the value of services provided
by locos of local railway to foreign railway or vice versa. The net GTKM (receivable or
payable) is adjusted in the fuel head booked under Demand no. 10 including debits of home
Railway’s locos involving HSD oil receipt from foreign railway.
Further, the division is involved in following activities:
Inward TC: Accepting Inward Transfer Certificates of HSD oil for and GTKM raised from
various foreign railways for those Home Railway Locos taking HSD oil in the location of
Foreign Railways and those foreign railways Locos earning GTKM on Home Railway.
Outward TC: Raising of outward TC’s of GTKM to various foreign railways for home
railway locos earning GTKM on foreign railways. As regards, raising of debit TCs of HSD
oil received by foreign railway locos from home railway done by the concerned NWR
divisions directly.
Following table shows the booking levels of GTKM/HSD oil:
Particulars Inward Outward
HSD Oil Zonal Level Divisional Level
GTKM Zonal Level Zonal Level
Calculation of GTKM:
Gross GTKM = Gross tonne * Kilometre
# Gross tonne = Net tonne + Tare tonne
# Tare tonne = Weight of spare wagon
# Net tonne = Weight of Stock in Wagon
GTKM booked in two ways in case of Intra HQ transactions:
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Observation 1: At the time of
suspense with the Prime cost
Suggestion by ICAI ARF: The
as a current liability at the end
Observation 2: As per the current
and passed for approval to the
approved the same is forwarded
pending invoices as on 31st March
Suggestion by ICAI ARF: Accrual
not accounted with CO6 for which
Observation 3: Substantial quantity
storage point to fuelling point)
on 31st March.
Suggestion by ICAI ARF: A
pipeline should be recorded in
4.4.2 Transfer Transactions
The Indian Railways is a very
divided into 17 Zonal Railways
there are 8 Production Units
Inward GTKM
NWR LOCOs earn GTKM on Foreign
Railway
Recorded at Zonal Level through
inward TC
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of Procurement of Fuel by RDI, the same is charged
of the fuel and knocked off at the time of payment.
he credit balance of the purchase suspense should
end of financial year.
current process, when a Tax invoice is received,
the concerned department by competent authority.
forwarded to cash and pay section in CO7 format.
March outstanding for payment process.
Accrual entry should be passed at the end of the
which the amount needs to be quantified.
quantity of fuel stock remains in the connecting
point) at RDI which should be taken into closing
A procedure for recording of outstanding fuel
in a register.
Transactions – Intra and Inter Unit Transactions
very large organization. The whole network of
Railways from the administrative and geographical
Units (PUs), which are engaged in production
GTKM
Inward GTKM
NWR LOCOs earn GTKM on Foreign
Railway
Recorded at Zonal Level through
inward TC
Outward GTKM
Foreign Railway earn GTKM on NWR
Recorded at Zonal Level through outward TC
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charged to purchase
payment.
should be recognised
received, CO6 is prepared
authority. Further, once
format. Treatment of
the year for the bills
connecting pipeline (from
balance of stock as
fuel quantity in the
Transactions
Indian Railways is
geographical perspective. Also,
production of Coaches,
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Locomotives, and Wagons etc.
Railways network.
Transfer transactions include
i.e., Divisions, Workshops,
Railways, such transaction takes
These transfer transactions are
made or received for them.
Transaction between any two
means of Transfer Certificate
raised and accepted electronically
Books of accounts both accounting
As per Para 401 of Chapter IV
classified as follows:
4.4.2.1 Transfer Transactions
The transactions between the
Intra Railway transactions. These
Capital, Transfer Revenue and
Transfer Capital and Transfer
As separate accounts records
Railway, it often becomes necessary
revenue books to capital account
remittance heads are operated
involving revenue account in
transfers to capital account in
If a capital transaction is brought
transfer to Capital Account Books
Transfer Capital and Transfer Revenue
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etc. These Production Units are an integral
include transactions which are made between two
etc., of a Zonal Railway and between Zonal
takes place through Transfer Certificates which
are settled through book adjustment, i.e., no
two accounting units of same railway is effected
ertificate (TC). All Transfer Certificates of transfer
electronically through E-RECON software. To record
accounting units pass the Journal Vouchers.
IV of “Accounts Code Volume – I” Transfer
Transactions – Intra Railway Transactions:
two accounting units of the same Zonal Railway
These transfer transactions comprise transaction
and Transfer Divisional.
Transfer Revenue
records are kept for "Capital" and "Revenue" transactions
necessary to transfer capital items brought to
account and vice versa. For this purpose, the
operated in accounts :- (a) Transfers, Railway Revenue
the Capital Accounts Books, (b) Transfers, Railway
the Revenue Account Books.
brought to account through the Revenue Account
Books is effected as in the journal entries below:
Transfer Transactions
Intra Railways Transaction
Transfer Capital and Transfer Revenue
Transfer Divisional
Inter Railways Transactions
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integral part of Indian
two accounting units,
Zonal Railways. In
which is known as TC.
no cash payment is
effected in the books by
transfer transactions are
record the transactions in
Transfer Transactions are
Railway are known as
transaction of Transfer
transactions of a Zonal
to account through
the following two
Revenue-For transfers
Railway Capital-For
Account Books, its
below:-
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(i) Revenue Books –
Appropriate Revenue Head* DR Xxx
To Transfers Railway Capital CR xxx
OR
Transfers Railway Capital DR Xxx
To Appropriate Revenue Head* CR xxx
(ii) Capital Books –
Appropriate Revenue Head* DR Xxx
To Transfers Railway Revenue CR xxx
OR
Transfers Railway Revenue DR Xxx
To Appropriate Revenue Head* CR xxx
*Appropriate Head under major head 5002 / 5003-Capital outlay on Indian Railways
Commercial lines/strategic lines.
The result is that the per contra debit or credit to transactions recorded under the head
"Transfers, Railway Capital" in the revenue books will appear under "Transfers, Railway
Revenue" in the capital books and vice versa
It is pertinent to note that no TC is raised for these transactions since these transactions take place
within the same accounting unit.
For Example: Purchase/Receipt of fuel; which is a revenue expense for railway but
initially booked under capital head.
1. Journal entry at the time of receiving fuel Dr. Cr.
Store suspense head 100000
To Transfer head for Head Quarter 100000
Store suspense head is a capital head.
2. Journal entry to book this expense under revenue Dr. Cr.
Transfer Revenue 100000
To Store suspense head 100000
3. Journal entry to transfer from capital head Dr. Cr.
Relevant Demand (Demand No. 10) 100000
To Transfer Capital 100000
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Transfer Divisional
In Zonal Railway, the Accounts Department is decentralised. The transactions arising in the
accounts of one accounting unit which are adjustable in the accounts of the other unit are
adjusted to the latter by operating the head Transfer Divisional. Separate sub-heads are
allotted to each Accounting Unit. The Division or Branch originating the transaction Debits/
Credits the Head Transfer Divisional which is accepted by the responding office by minus
Debit or minus Credit against this head or by Debit/Credit. We can understand the use of
the same with the help of following examples
4.4.2.2 Transfer Transactions – Inter Railway Transactions
Transfer Railway:
Transactions between Zonal Railways are known as Inter Railway Transactions. Transfer
Certificates relating to these transactions are dealt with in the Books sections of Head
Quarters offices of respective Zonal Railways. For issuing the TC, the accounting unit of a
Zonal Railway sends relevant vouchers or bills to the Books section of its Head Quarter
along with a memo showing the allocation against which the amount is to be adjusted.
Thereafter, the Head Quarters Books section forwards the TC to its corresponding Zonal
Railway. The receiving Zonal Railway passes on this TC to its accounting unit concerned
with a memo for acceptance or adjustment.
For instance, a unit of Zone A paid an amount of expenditure on behalf of the unit of Zone
B then the unit of Zone A will pass the following accounting entry:
Transfer Railways - B(008797--) DR Xxx
To Head for Cheques and Bills (00867002) CR xxx
And for this transaction the unit of zone A will raise the TC through E-RECON/ IPAS within
the prescribed time. In case the accounting unit of zone A fails to generate TC in E-RECON/
IPAS within prescribed time then the following write-back entry is passed at the time of
Example 1
If an employee of Division A is transferred to Division B and, there is a credit balance of
Rs. 50,000 in the employee’s PF account, Division A will record this transaction by
passing following entry:
Head for PF - (Credit) 50,000
Transfer head for Division B Credit 50,000
On the other hand Division B will pass following entry to record this transaction:
Head for PF Credit 50,000
Transfer Head for Division A -Credit 50,000
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finalization of monthly accounts to remove the effect of such debit for the purpose of
reconciliation of accounts between Zonal Railways;:
Corresponding Suspense head DR Xxx
To Transfer Railways - B(008797--) -DR xxx
In next month at the time of preparation/generation of TC, JV is prepared in E-RECON/
IPAS and following journal entry is passed after acceptance of TC by responding unit:
Transfer Railways - B(008797) DR Xxx
To Corresponding Suspense head -DR xxx
4.4.2.3 Returned/Disputed Transfer Certificates
Responding unit accepts the TC received in the same month in which it is raised by
originating unit. However in some cases TC is not accepted by the responding unit due to
some deficiencies like transactions does not clearly pertain to it; all relevant vouchers are not
attached, etc., in these cases the TC is returned by responding unit with objection remarks.
Sometimes, if responding unit neither returns nor accepts the TC upto prescribed date then
system automatically accepts the TC and prepares JV.
For instance, if a unit of zone A receives a TC showing debit from a unit of zone B but unit of
Zone A neither returns nor accepts the TC upto prescribed date then TC is accepted
automatically in system and JV is prepared. At the end of month, when all the inward and
outward TCs are uploaded/ported on IPAS from E-RECON or on IPAS directly, then the
following entry is affected in IPAS.
Transfer Railways - A(008797 ) DR Xxx
To Transfer Railways - B(008797 ) CR xxx
Further, to rectify the above entry in IPAS two situations arise:
i. If concern head of relevant demand is known then the following entry is passed:
Concern Head of Relevant Demand DR Xxx
To Transfer Railways –A(008797 ) -DR xxx
ii. If concern head relevant demand is not known or it is required to return the TC then the
following entry is passed:
Corresponding Suspense head DR Xxx
To Transfer Railways – A(008797 ) -DR xxx
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4.4.2.4 Transfer of Advances
When an employee is transferred
the balance of his Advances
Advance, etc., are also transferred.
means of transfers certificate
accounting units pass Journal
For instance, an employee of Zonal
a Debit balance of Rs. 50,000
Zone A, it will record this transaction
Head for House Building Advance
To Transfer Railways
Zonal Railway B will record this
To Transfer Railways – B
Head for House Building
4.4.3 Transfer without
In the context of Indian Railways
through financial accounts of
opening balance of the concerned
transferred from one zone to
Coaches, Wagons, Railway
cumulative total cost of transferred
from its block account and the
its block account in the year of
types of transactions are dealt
types:
1. Transfer of Rolling Stock
transferred from one Zonal Railway
amount of depreciation from
renewed, both are transferred
Transfer of Rolling Stock
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Advances – Inter Railway
transferred from one Zonal Railway to another Z
Advances like House Building Advance, Computer
transferred. These transactions of transfer are effected
certificate (TC). To record the transactions in Books
pass Journal Vouchers.
Zonal Railway A is transferred to Zonal Railway
50,000 in the House Building Advance account of
transaction by passing following entry:
Advance -CR Xxx
Railways – A -DR
this transaction by passing following entry:
DR Xxx
Building Advance CR
without Financial Adjustments – TWFA
Railways, TWFA are those transactions which
of the year. These adjustments are carried
concerned account head. For instance, when
to another zone viz. inter Zonal railway
lines, Land, etc., the transferring railway
transferred assets from opening balance of the relevant
the transferee Railway will add the same in opening
of transfer without financial transfer i.e. with
dealt with in the Head Quarters Books section
Stock - When rolling stock like Wagon, Coach,
Railway to another Zonal Railway then the original
from the date of purchase or from the date
transferred from the Selling Railway (Transferor)
TWFA
Transfer of Rolling StockTransfer of Assets other than Rolling
Stock
Scope Evaluation Report
Zonal Railway then
Computer Advance, Scooter
effected in the books by
Books of accounts both
Railway B and there is
of that employee in
xxx
xxx
which are not passed
out by modifying
when the assets are
transfer of Locos,
railway will reduce the
relevant plan head
opening balance of
without any TC. Such
section. TWFA is of two
Coach, Loco etc. is
original cost and the
of last renewal if
to the Purchasing
Transfer of Assets other than Rolling Stock
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Railway (Transferee) without any financial adjustment. If any renewal has taken place then
the cost of part renewals actually charged to the Depreciation Reserve Fund is deducted
before transfer.
Further, for this transfer the value of depreciation is calculated on the basis of "normal
life/useful life’’ as per the paragraph 219 of Finance Code-I except in case of "carriage" and
"wagon" where the life is to be taken as 30 and 40 years respectively.
Computation of amount of Depreciation –
When locomotives and other rolling stock are transferred from an Indian Railway to a
railway other than Indian Railways the Depreciation Reserve Fund of the selling railway is
debited with the original cost of the stock by credit to Capital and the Depreciation Reserve
Fund credited with the depreciated value of the stock, by debit to the railway to which the
stock is transferred.
The depreciated value being arrived at according to the following formula where-
(a) is the sum of the years the stock has run, six months or less to be ignored and more than
six months to count as one year;
(b) is the sum of the years of its normal life;
(c) is the original cost of the stock or present day replacement cost, whichever is greater;
Then
� −
⎝
⎜⎛
�−�
� 75 �/100
⎠
⎟⎞
=Depreciated value of Stock
Eg. If a Workshop of Western Railway transfers its Carriage costing Rs. 60, 00,000 with a
useful life of 30years to Workshop of North Western Railway after using it for 15years then:
Adjustments in the Block Account Current of Workshop of Western Railway
The original cost of Rs. 60, 00,000 Carriage will be deducted from the Source of fund (in
terms of Railways “Minus Debit” will be given to the source of fund); and
The amount of depreciation of Rs. 11, 61,290* will be added to the Depreciation Reserve
Fund (in terms of Railways “Minus Credit” will be given to the source of fund).
*Calculation of Depreciation
120 75*60, 00,000 11, 61,290/-
465 100
X =
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Adjustments in the Block Account Current of Workshop of North Western Railway
The original cost of Rs. 60, 00,000 Carriage will be debited to the source of fund ; and
The amount of depreciation of Rs. 11, 61,290* will be credited to the source of fund.
2. Transfer of Assets other than Rolling Stock - When assets other than rolling stock like
land, building, railway line, etc., are transferred from one Zonal Railway to another Zonal
Railway, adjustments, where necessary, will be made between the selling railways
(Transferor) and the purchasing railways (Transferee) in accordance with paragraphs 703 to
715 of Finance code – I. The transfer/sale value for this transaction is actual cost, if the actual
cost is available, otherwise the sale value is mutually decided by both the Zonal Railways,
and it may be market value as decided in case of disposal or sale of assets.
Eg. If a Division of Western Railway transfers its Railway line at the mutually agreed price
of Rs. 25,00,000 to a Division of North Western Railway.
Adjustments in the Block Account Current of Division of Western Railway
The realizable value of Rs. 25,00,000 Railway line will be deducted from the source of
fund (in terms of Railways “Minus Debit” will be given to the source of fund).
Adjustments in the Block Account Current of Division of North Western Railway
The realizable value of Rs. 25,00,000 Railway Line will be debited to the source of fund.
The information of transactions of the TWFA is provided by the concerning unit to the Head
Quarter in the following format:
STATEMENT OF TWFA TO END OF 2XX1-X2
S.
No.
Particulars
of Assets
Railway to
which
Transferred
Railway
from which
transferred
Amount
in Rs.
Head of
Account
Amount
in Rs.
Reference
Letter
Total Original Cost of
transferred assets
Total Uses Amount of transferred
assets
Contribution to Source of
Fund
Amount of Rs. XXX Amount of Rs. XXX Amount of Rs. XXX
On receipt of information of transaction of TWFA in the aforesaid format from all the units
of the Zone, the Headquarters Books section compiles details of all TWFA transactions for
the purpose of calculation of dividend on capital and interest on Depreciation Reserve Fund.
Rate of Dividend is prescribed by the Railway Board and the same rate of dividend is used
to calculate the interest on railway funds.
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This information of TWFA transactions is sent to Railway Board to verify the balance of
Capital and total TWFA transactions carried out during the year.
4.4.4 TWFA transactions to transfer the balances other than source of fund:
Usually, TWFA transactions are made to transfer only assets from one zone to another zone
but in some other cases these adjustments are also carried out to transfer the balances of
Deposits, Advances, other fund balances etc., and adjusted through the transfer heads. The
transfer head of transferor will be debited or credited and the transfer head of the transferee
will be credited or debited.
For instance, when North Western Railway was carved out of Western Railway, all assets
which were financed from Capital were transferred through TWFA and block account of
both WR and NWR were affected as explained above.
Further, to transfer the other balances like balance of Miscellaneous Advance Revenue,
Miscellaneous Capital etc. the head of respective balance were affected through TWFA in
the following way:
Adjustments in the Head of Miscellaneous Advance Revenue of Western Railway
The outstanding balance of Miscellaneous Advance Revenue was credited, by debiting
to NWR.
Adjustments in the Head of Miscellaneous Advance Revenue of North Western Railway
The outstanding balance of Miscellaneous Advance Revenue was debited, by crediting WR.
4.5 Other Departments at the Zonal Railway Headquarters
4.5.1 Construction Department
The Construction Department is headed by Chief Administrative Officer/Construction
(CAO/C)
Main work of Construction Department is to construct, replace and acquire the fixed assets
for the railways viz. new line, gauge conversion, doubling, traffic facilities and yard
remodelling, ROB, RUBs, signalling and telecommunications, electrical traction and non-
traction works, workshop modernization and other specified works.
Process followed in the Construction Department:
For the new project first of all operating department of Zonal Railway works out the
requirement of new project. On the basis of which open line prepares abstract estimate for
inclusion in the preliminary works program which is generated on IRPSM monitored by RB.
If the new work is chargeable to capital than necessary rate of return is worked out. The
proposals are forwarded to RB after concurrence of associate as well as HQ finance duly
ensuring that the investment will be financially justified and the rate of return anticipated is
actually materialized. Once the works proposed have been approved by the Railway Board
the competent authority conducts a reconnaissance survey (if applicable) to ascertain
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whether the project is feasible
through CAO/C and GM of Zonal
Surveys are to be carried out
detailed estimate of the work
report should be accompanied
report should be in sufficient
decision regarding the standard
submitted to finance for concurrence
authority (as per the SOP). Detailed
the work subject to availability
The project report contains the
4.5.2 Stores Department
Stores Department is responsible
quality of materials to the user
Therefore Indian Railways
Workshops. The Stores department
out the following functions: Procur
Efficient maintenance of stock
Efficient financial scrutiny
Verification of physical b
Disposal of waste/ scrap
Project Engineering including Cost Estimate and
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feasible or not. The survey team sends its report
Zonal Railway.
out for new projects as per the provisions of engineering
work is thereafter prepared by the department
accompanied by cost estimate. The estimate based on
sufficient detail and accurate to enable a competent
standard of construction of the new project. This detailed
concurrence and thereafter, the same is sanctioned
Detailed sanctioned estimate constitutes authority
availability of funds.
the following details:
Department
esponsible for ensuring timely procurement and availability
user departments.
have a separate Stores department at HQ,
department along with the associated finance and
Procurement of materials and spares at the most
stock
crutiny and accountal
balance
Introduction
Characteristics of the Project Area
Standard of Construction
Route Selection
Project Engineering including Cost Estimate and Construction Schedule
Conclusion and Recommendations
Scope Evaluation Report
report to Railway Board
engineering code. A
department concerned. The
on the preliminary
authority to take a
detailed estimate is
sanctioned by competent
authority to commence
availability of right
HQ, Divisions and
and accounts carries
most economic costs
Project Engineering including Cost Estimate and
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Description of Different Types of Stores:
i. Stock Items: Items which are frequently and regularly required and whose unit cost
justifies incurring inventory carrying cost are known as 'Stock' items. These items are
kept in the custody of Stores Depots Stock items comprise the following types:
a. Ordinary Stores: Ordinary Stores are generally such items of Stores for which there
is a regular turnover caused by a constant demand and which are stocked by the
Stores Depots.
b. Emergency Stores: Items of stores which do not ordinarily wear out or require
renewal, which have, however, to be kept in stock to meet emergencies, such as
those due to breakage or unanticipated deterioration, and which are not readily
obtainable. The stock cards relating to such stores are marked with the letter 'E'.
ii. Non Stock Items: All items other than 'stock' items are called "Non-stock items”. These
items may, however, be described in the Standard Nomenclature List. No purchase of
such items is made for stock purposes.
iii. Special Stores: These are stores required for works and other special purposes i.e. other
than for 'operation' or 'ordinary maintenance and repairs' and which are ordinarily
dispatched directly to the requisitions without being stocked in a Stores depot.
iv. Surplus Stores: are those items of stores not consumed for a period of 24 months owing
to the following:
a. Obsolescence i.e. due to change in design or specification
b. Unanticipated fall in consumption
c. Return in large quantity of stores by consuming department
Surplus stores are further classified into following two categories:
Movable Surplus: Items not issued for a period of 24 months but which are
anticipated to be utilised in near future.
Dead Surplus: Items not issued for a period of 24 months and also not likely to be
utilised on the Railways within the next 2 years.
Classification of Stores on ABC analysis basis: Procurement of stores is done on the basis of
ABC analysis which is as under:
1. Category ‘A’: This category includes items whose annual consumption value is the
highest; the top 70% of the annual consumption value accounts for only 10-20% of total items
of Stores. These items can be purchased six months in advance.
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2. Category ‘B’: This category includes items with annual consumption value of around
20% accounting s for 30% of total items of Stores. Stock of these items can be purchased
twelve months in advance.
3. Category ‘C’: Remaining items are taken in this category. Stock of these items can be
purchased two years in advance.
Procurement process followed in Stores Department:
Procurement, in IR, is broadly made in the following manner:
i. Purchases through Director General of Supplies & Disposals (DGS&D) – For Stock
Items: Based on the demand made by the Stores Depot which is vetted by the Associated
Finance, the Controller of Stores (COS) makes an estimate of the requirement for the
next 12 months for each of the item held in stock.
Subsequently the items required are listed in the indent form and after certification of
the fund availability by the Associate Finance the indents are forwarded to Director
General of Supplies & Disposals (DGS&D) for compliance.
A Rate Contract is entered upon by DGS&D with approved firms. A consolidated list of
requirement of all the Stores depots is made at the Headquarters Stores Department and
a Purchase Order (PO) is placed by the HQ through the DGS&D Rate Contract. A copy
of the Purchase Order is sent to the Firm, two copies are sent to the Accounts office out
of which one copy is sent to the Bills Section for making payment.
On the basis of such PO supply of stock is made by the supplier to the depot concerned.
The Stores Depot checks the material received and thereafter issues a Receipt Note (RO).
ii. Purchase by the Railway Board: For the Purchase of Superior Kerosene Oil (SKO),
Furnish Oil (FO) and Lubricants, a Rate contract is made by the Railway Board with the
approved suppliers. Subsequently, procurement is made by the Zonal Headquarter
directly through the Railway Board Rate Contract.
iii. Direct Purchase by COS: Two types of stores are procured by the COS directly:
a. Stock Items: The Controller of stores (COS) has to estimate in advance the total
purchases which have to be made during the next 12 months for each item of stock
held. Before the COS can estimate the quantities he should purchase during the next
period of 12 months, he has to obtain detailed information/ demand raised by the
concerned Divisions under the zone. This demand for the quantities of Stock Items
is vetted/ authorized by the associated finance.
b. Non Stock Items: Demand for the Non-Stock Items is received from concerned
Division/Consignee and approved by the competent authority (as per schedule of
powers). Budget is made available for the Non-Stock demand, after this proposal of
Non-stock items is vetted by the Associate Finance and sent to the COS for the
procurement.
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Recording of transactions by the Accounts and Finance Office
A. In case of direct purchase through tendering:
On receiving the material the Stores Depot issues a Receipt Note i.e. RO statement no. 3 in
the Material Management Information Systems and the following entry is made:
Stock in Depot DR xxx
To Purchase Suspense CR Xxx
On payment to the supplier the Accounts Store Bills office passes the following entry in the
books of accounts by preparing a CO7:
In certain cases 90/95/98% advance payment against proof of dispatch i.e. Railway receipt,
Material receipted challan of consignee and inspection certificate is also arranged as per
terms and condition of PO. In such cases remaining 10/5/2% payment can be claimed by
vendor after obtaining RO.
Also 100% payment can be claimed by the Vendor on the basis of Receipt Note and
inspection certificate.
B. In case of purchase through DGS&D
The Department of Commerce supply chain debits the Purchase Suspense (20713709) and the
same book as under:
Purchase Suspense (20713709) DR Xxx
To Department of Commerce supply chain
Mumbai (00866081)
Calcutta (00866082)
Delhi (00866083)
Chennai (00866084)
CR Xxx
On accepting the debit, the Zonal Railway passes the same in the Books as under:
Stores in Stock DR xxx
To Purchase Suspense CR Xxx
C. In case of purchase through Railway Board (RB)
On receiving the material the Stores Depot credits Purchase Suspense (20712309) by making
the following entry:
Purchase Suspense DR xxx
To Cheques and Bills CR Xxx
Stores in Stock DR xxx
To Purchase Suspense (20712309) CR Xxx
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On payment, Accounts and Finance office passes the following entry in the books of accounts
by preparing a CO7 wherein payment is to be made to approved firm:
Information in respect of payables are to be captured in prescribed formats (Refer Annexure
3 – Accrual Impact sheet) for the purposes of preparation of financial statement on accrual
basis These details are available with the Books and Budget Section and Stores Department
4.5.3 Establishment Section
The HQ Establishment Section of deals with the internal checks exercised in accounts office
on personal claims of railway employees.
During the internal check of Pay and Allowances it is seen that the charges are incurred
against the sanctioned post either revenue or work-charged. The check against the budget
provision should, in the case of construction projects or work-charged post operated in Open
Line, is conducted with reference to the detailed estimates sanctioned by the competent
authority as well as extension of currency of such posts. This section maintains the service
sheet of employees and deals with all service matters.
Work Done under Establishment:
Establishment section conducts internal checks on the following:
1. Pay Bills
2. Leave Encashment
3. Arrears
4. Central Government Employee Group Insurance Scheme (CGEGIS)
5. Maintenance of Suspense Registers of advances granted to employees viz, HBA, Motor
Car, computer, scooter/motor cycle, cycle, fan and natural calamities etc.
6. Service Record and leave account of Gazetted Officers.
7. Certification of pay fixation, cases of proforma promotion, cases of stepping up, TA,
Tuition Fees, Last Pay Certificate (LPC).
8. Maintenance of scale checks register and cadre register.
9. Recovery of Foreign Service Contribution (FSC) Charges.
10. Compensation arising from Workmen Compensation Act or other act and ex-gratia
payments in case of death on duties.
4.5.4 Cash and Pay Section HQ
There are Cash Offices on Divisions and HQ of the Railway under charge of Dy. FA&CAO/
Cash & Pay to deal with the earnings and Miscellaneous Receipts of the Railway.
Further Pay Offices at Head Quarter, Divisions also handle the payments and work under
the charge and control of the Dy. FA&CAO (Cash & Pay) & Chief Cashier.
Purchase Suspense DR xxx
To Cheques and Bills CR Xxx
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4.5.5 Settlement/ Pension Section
The Settlement/ Pension Section of HQ Railway deals with the internal checks exercised in
accounts office on the retirement claims of railway employees.
This section maintains Data pertaining to retired employees and performs internal checks
on the following:
1. Pension benefits
2. Revision of Pension Payment Orders (PPOs) due to Pay Commission or Court case, etc.
3. Check of pension debits received from Treasury, Banks and Department of Post
Pension benefits granted to Railway employees generally fall under the following
categories.-
1. Superannuation Pension
2. Retiring Pension
3. Compensation Pension
4. Commuted Pension
5. Death-cum-retirement Gratuity
6. Service Gratuity
7. Other (extra-ordinary) Gratuity
8. Compassionate allowances/grants
9. Family Pension
10. Terminal Gratuity
11. Death Gratuity
12. Pension under New Pension System
The detailed rules regulating the grant of pensionary benefits are contained in the Indian
Railway Establishment Code Vol. II, in the Manual of Railway Pension Rules, 1993 and
extant orders issued from time to time.
The internal check of pension lies in verifying that the qualifying conditions governing the
grant of a pension are fulfilled, the calculation of amount of pension is correct and the
incidence and allocation is correct.
4.5.6 Statement of Service of Non-Gazetted Staff
On receipt of the application for pension in the prescribed form the head of the
Office/Department prepares a statement of the applicant's service in accordance with the
instructions contained in form No. 30A RII to enable the Accounts Officer to verify the
service.
4.5.7 Statement of Service of Gazetted Staff
As the Service Records and leave accounts of Gazetted Officers are maintained by the
Accounts Officer, the concerned Accounts Officer will send the service record and leave
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account of the Officer to the head of the Department to enable the head of the Department to
prepare the Statement of Service. In addition, a statement showing the pay drawn during the
last ten months of service by the officer will be sent by the Accounts Officer to the head of
the Department for preparing the Memorandum of average emoluments.
The Statement of Service shows all the important events; the temporary and officiated service
or those affecting the emoluments, of the Railway employee. It should be clearly seen that:-
Verification of Service by Head of the Office
The head of the Office/Department is required to verify the service of Non-Gazetted staff
recorded in the Statement of Service. The head of the Office/Department will also verify the
portion of service, if any, of a Gazetted Officer rendered in Non-Gazetted capacity. The
service of a Gazetted Officer rendered in the Gazetted capacity should be verified by the
Accounts Officer himself.
Check of Service by the heads of Offices
The heads of offices are required to verify service annually and record a certificate regarding
the service verified, in the Service Book as prescribed in Indian Railway Administration and
Finance-an Introduction. In respect of the past service (prior to 01.04.1957 i.e. the date from
which pension scheme was introduced on Railways) only one consolidated certificate is
S. No. Particulars
1. The statement shows not only the periods which count as qualifying service but
also all periods of leave, suspension, overstayed etc., which do not so count. The
latter is entered in red ink in order to clearly distinguish them, and reasons for
their rejection are given in the remarks column.
2. If the date of confirmation has been deemed date of confirmation, the fact should
be clearly mentioned in the statement, the details of the case being given in the
remarks column;
3. The statement shows date, month and year of the various appointments,
promotions and reversions. For the purpose of adding together broken periods, a
month is reckoned as thirty days.
4. Periods which count as qualifying services are clearly indicated and that full
details of the nature of posts/service and the relevant Para under which the same
qualifies is indicated in respect of each period in the remarks column;
5. If the emoluments drawn in an officiating appointment count in full for pensioner
benefits all details regarding the officiating appointment are given;
6. The total of the periods of the qualifying service shown in the statement tallies
with the total service less the non-qualifying service shown in the statement tallies
with the total service less the non-qualifying periods shown in the statement;
7. In the column "how verified" the particulars of records such as verification
certificate in the service book/pay bills, acquaintance rolls/office orders, collateral
evidence/affidavit, etc., are mentioned.
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recorded for the whole service in the Service Book. Where it may not be possible to verify the
entire past service due to non-availability of office copies of pay bills etc. From which service
is verified, the verification is done from the application of the employee supported by
collateral evidence of contemporary employees etc. These documents relied upon by the
Head of the Office in verifying the service may be accepted in Accounts Office.
Check by Accounts Inspection Party
The verification of service by the head of office should be supplemented by a test check by
the Accounts Inspection Party during their local inspection of the Executive Offices on
annual, biennial or triennial basis, as the case may be.
Verification of service in the case of non-availability of records
If paid vouchers or other documents are not available in the Accounts Office the verification
may be made from the documents made use of by the Executive Offices. If it be impossible to
verify (a portion of the) service otherwise, the facts determined should also be accepted for
the purpose of check in the Accounts Department relating to the particular period of service.
The date of birth and the date of beginning of service, as shown in the Application Form and
the service Statement may be checked with the Office Order containing the appointment of
the employee or old Gradation Lists etc. and in the absence of these, with the Service Book
Register. Whenever the Service Book/Roll sent with the pension application, contains entries
relating to important events such as alteration in date of birth, suspension, dismissal
resignation etc. these entries may be verified with copies of orders furnished to the Accounts
Office.
4.5.8 Expenditure Section
The Expenditure Section of HQ of the Railway carries out internal check of all bills received
from the Executive Officer for arranging payments.
4.5.8.1 Organization Chart of Expenditure Section
FA & CAO (Finance and Budget)
Dy. FA & CAO (Finance and Expenditure- F &X)
Sr. AFA (X)/ AFA(X)
SSO – X1
SSO – X2
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4.5.8.2 Functions of Expenditure Section:
The Expenditure section deals with the following functions:
i. Bill passing of empanelled hospital.
ii. Payment of Contractor bill
iii. Preparation& maintenance of works register.
iv. Demand -9 acceptance & raising TCs of IRFA, IRCA & IRFC
v. Submission of quarterly return Income Tax.
vi. Maintenance of Dues/Demand recoverable
vii. Payment of Lease bill.
viii. Payment of Supplier/ Procurement Bills.
ix. Maintenance of Suspense Register Deposit (X) and Miscellaneous Advance
Expenditure (MAX).
x. Posting of unpaid cases of suspense Heads and passing of unpaid pay orders.
xi. Acceptance of TC/ATC
xii. Preparation of Journal Voucher of Railway.
xiii. Posting & Reconciliation of paper security register.
xiv. Passing of telephone bill.
xv. Advertisement bill.
xvi. Postal, fuel and cash imprest.
xvii. Bill passing of hiring of vehicles.
xviii. Payment of Advocate bills.
xix. Payment of GRP bills.
xx. Reimbursement of Laptop/Repair bills.
xxi. Preparation of Block Account.
xxii. Payment of Miscellaneous bills (Purchase/Quotation/Works etc.)
xxiii. Payment of Non Stock bills and Local Purchase bills.
xxiv. Compilation of report for uneconomic branch lines.
xxv. Compilation of report/ return received from units:
a. Bills Recoverable
b. Bills Payable
c. Way leave cases
xxvi. Preparation and maintenance of Objectionable item register
xxvii. Payment of unsanctioned expenditure.
4.5.9 Books and Budget Section
Books section is the compiling section. Preparation of cheque for payment is done
by Books section. Books section also prepares monthly account current. Budget
section deals with preparation of budget and review.
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4.5.9.1 Organization Chart of Books and Budget section
4.5.9.2 Functions of Books and Budget Section:
The Books section deals with the following functions:
1. Cheques Section-This section deals with the work of arranging payments for all types of
bills passed by the various sections of FA&CAO office issuing cheques.
2. Approximate Account Current Section-This section deals with the following works:
a. Preparation of approximate account current of Head Quarter office.
b. This section compiles the approximate Account Current of Railway and submits it
to Railway Board (RB) on 5th of the next following month.
c. Approximate Account Current consists of both Revenue and Capital at one place.
3. Actual Account Current Section-This section compiles head wise actual figures of
Account Current and submits it on 4th of next of the next following month. Actual
Account Current is prepared in two parts-Revenue and Capital, and further sub divided
in two schedules viz. Commercial and Strategic. Account current is supported with
various schedules namely, Working Expenses, P Loans & Advances, Earning, Plan Head
schedules etc.
4. Remittance into Bank (RIB) Section-This section deals with the receipt side. Amount
received at Railway Stations and/or at Cash Offices is remitted to designated bank
through remittance challan. A copy of challan is received in Accounts Office from
designated bank and credit is posted in RIB reconciliation register and Debit is posted
from the statements received from Traffic Accounts Office and other accounting units in
respect of receipts. Thereafter this reconciliation register is reconciled and differences
are sorted out by chasing with bank and or accounting units. On receipt of challan from
cash office, RIB suspense head is debited by crediting to various heads of earnings,
Sr. SOs for Cheques,
Account Current, RIB,
Cheques, TC etc.
Sr. SO’s
Sr. AFA (Books)
FA & CAO
(Finance and
Dy. FA & CAO
(Books and Budget)
Sr. AFA (Budget)
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service heads or deposits as the case may be. Reserve Bank of India (RBI) confirms the
receipt and issues clearance memo. In these regards the following entries are made:
i. On receipt of challan:
RIB Suspense DR Xxx
To respective heads of earnings service
heads or deposits
CR Xxx
ii. On receiving clearance memo from RBI:
Deposit with RBI DR Xxx
To RIB Suspense -DR Xxx
iii. If the instrument is dishonoured:
Respective heads of earnings, service heads or deposits DR xxx
To RIB Suspense (-)DR Xxx
5. Cheques & Bills Section - This section deals with the issue of cheques for making
payments by preparing cheque abstract. While preparation of cheque abstract, software
(IPAS) automatically transcribes the data available in CO7 to cash book, revenue/capital
allocation register. On confirmation of cheque clearance from RBI, the following entries are
made:
i. On issue of cheque for payment:
Respective Expenditure head DR xxx
To Cheques and Bills CR Xxx
ii. On receiving clearance memo from RBI:
Cheques and Bills (-)CR xxx
To Deposit with RBI CR Xxx
6. Transfer Certificate Section – This section deals with the monitoring of
Inward/Outward Transfer Certificate (TC) whether it is Inter Railway or Intra Railway. The
whole process is dealt on E-RECON/ IPAS software which is centralised server and web
enabled application. After acceptance of debits/credits received inward on E-Recon/ IPAS,
software generates Journal slip. Earlier E-Recon was not integrated with the IPAS software
where financial accounting of Railway was maintained, therefore, Journal Slip so prepared
on the E-Recon were either ported on IPAS or data entry in Journal Voucher was made by
the section accepting the Debit/Credit. However now IPAS application has been
implemented on all Zonal Railways and transfer transactions are also being carried out
through IPAS.
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The Budget section deals with the following functions:
i. Capital and Revenue Demands
ii. Distribution of Original Budget Grant (OBG), Revised Grant(RG) and Final Grant (FG)
iii. Compilation & Submission of August Review (AR), Revised Estimate (RE), Budgeted
Estimate (BE), Final Estimate (FE) & Modification.
iv. Review of Actual Expenditure vis-à-vis Budget Grant.
v. Appropriation Account of Grant against the respective demands.
vi. Monthly FR to Railway Board (RB).
vii. Preparation of Statement of important misclassification
viii. Preparation of Statement of Defect in Budgeting
ix. Preparation of statement of Losses & Theft.
x. Preparation of Statement of Ex-Gratia Payment
xi. Preparation Monthly Statement : Financial Review (Demand Wise – Actual&
Approximate)
xii. Financial Parameter.
xiii. Financial Performance.
xiv. Working Expenses – Gross- Credit- Net.
xv. Preparation of Statement of Appropriation Account Depreciation Reserve Fund.
xvi. Statement of Appropriation Account Pension Fund.
xvii. Statement of Appropriation Account Stock Adjustment & Store Account.
xviii. Statement of Appropriation Account Suspense Balances.
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5 Understanding of Production Unit (PU)6
A detailed study of the accounting practices of a Railway Production Unit was made by
ICAI ARF during the pilot study at Rail Coach Factory (RCF) at Kapurthala. RCF is a
coach manufacturing unit of Indian Railways established in the year 1986.
5.1 Organization structure of PU
GM General Manager
CME Chief Mechanical Engineer
CDE Chief Design Engineer
CEE Chief Electrical Engineer
CMM Chief Material Manager
Fur Furnishing
CPLE Chief Plant Engineer
CWE Chief Works Engineer
CPE Chief Planning Engineer
CMO Chief Medical Officer
CPM Chief Project Manager
CESE Chief Electrical Service Engineer
FA & CAO Financial Advisor & Chief Accounts Officer
FA & CAO/P Financial Advisor & Chief Accounts Officer/Production
CE Chief Engineer
COS Controller of Stores
6 Based on pilot study carried in Rail Coach Factory (RCF), Kapurthala
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5.1.1 Structure of Accounts and Finance Department
Financial Advisor and Chief Accounts Officer
Financial Advisor and Chief Accounts Officer/P
Dy. Financial Advisor and Chief Accounts Officer
Sr. Assistant Financial Advisor
Assistant Financial Advisor
Sr. Section Officer Sr. Inspector Stores Accounts
Accounts Assistant Sr. Stock Verifier
Junior Accounts Assistant Stock Verifier
Accounts Clerk
5.1.2 The Production Process
An overview of coach production process is given below:
The production process starts from Receipt/Storage of store items as per work order for
manufacturing of coaches as per production plan. Material store items are issued to
shop floor through Shell Sub Store and Furnishing Sub Store. The production process
consists of following six major activities:
1. Sheet Metal Shop
2. Shell Assembly
3. Paint Shop
4. Bogie Shop
5. Furnishing Shop
6. Quality and Checking Shop
Besides the above major production centres, there are service centres which assist in the
production process. A Chart showing the production process in detail is given below: -
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Overall Diagram of Manufacturing Process
Activities of Shell Assembly
Shell Assembly
Paint Shop
Bogie Shop Machine Shop
Furnishing Shop
Finishing Shop Quality Check
Under Frame Shop
Side Wall Shop
Roof Shop
End Wall Shop
Shell Assembly
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Activities of Paint Shop
Activities of Bogie Shop
Masking of Windows
Internal cleaning
Primer Application of sides
First coat filler application
Second coat filler application
Wet filler rub down
Necessary filler application
Surfacer application
Dry rub down of surfacer
Top coat application and lacquer coat
Multicolor Scheme (Masking demasking and
bend painting)
Exterior painting, lettering and
pasting etc.
Straightening of Steel Plates
Profile Cutting
Shot BlastingWelding of Bogie
Frame
Bending
Milling/Beveling 100% X-Ray Testing
Shot Blasting of Bogie Frame
Painting of Bogie Frame
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Activities of Furnishing Shop
5.1.3 Functions of various Departments of PU
Functioning of some of the major departments in a PU is detailed hereunder:
i. Mechanical Department
The Mechanical Department plays an important role in manufacturing of coaches
as per production plan. The major sections of the Mechanical department are as
under:
(a) Mechanical Design: This section is responsible for developing the design of
various variants, products etc. Product structure list is also prepared by this
section by using the Integrated Design Monitoring System. It assists in
approving the vendor registration and also approves the prototype samples
for production orders.
(b) Material Planning Section prepares material schedules based upon the
Product Structure List (PSL) provided by the Design Office. It also prepares
the procurement memo wherein system picks up the rates from Financial
Accounting System. Wherever rates are not available, estimated rates are fed
by the material planning section; it also prepares the indents for coach spares
for other railways wherein the said PU is the nodal procurement agency. This
department also monitors non-stock indents for coach items. Proposals related
to off-loading of items to trade, which are being manufactured in house are
also made by this section. Besides Protective Clothing Management System
(PCMS) is used for monitoring safety requirements. Procurement of Stock
Requirements Memo (SRM) items is also done through planning.
Flooring
PVC Laying
Panelling
Window Ceilling
Moulding
Lavatory
Plumbing
Seat and Berths
lowering
Furnishing Interior
Furnishing Detail Paint
Furnishing Miscellaneous
Paint
Alarm chain assembly &
fitting
Carpentary
FRP
Air brake
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(c) Planning/Industrial Engineering Section works out the incentive labour rate
and labour hours for different jobs. It also works out manpower planning
under different groups as well as keeps the track of additional work done,
work off loaded to trade, and also works out the conversion factor for new
variants to be produced. Employee Incentive System is used to work out
Employee Incentive. Besides this Production Control Organisation and
supervisory allowances are also monitored by this section.
ii. Mechanical Production: This section is responsible for production of coaches as
per production plan. Major shops which perform their specified role in each stage
of coach production are as under:
S. No. NAME OF THE SHOP
1. Sheet Metal Shop
2. Roof Section
3. Under Frame
4. Fabrication shop
5. Shell Assembly
6. Machine shop
7. Bogie shop
8. Paint Shop
9. Furnishing Gang Number 13
10. Furnishing Mechanical
11. Train Lighting Shop
12. FRP Shop
13. Carpentry and Trimming
14. Finishing Shop
15. LHB Section
16. Wheel shop
17. Furnishing Gang Number 10, 11, 12
The following are the supporting shops to the abovementioned shops:
S. No. Tool Room
1. Millwright (Mechanical)
2. Millwright (Electrical)
3. Millwright (Electronics)
4. Transport shop
5. Progress
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6. Workshop maintenance L/T
Technicians, Supervisors and Helpers are responsible for production, maintenance
and operation of break down equipment. They are also responsible for preparation
of Rolling Stock Programme and correspondence with Railway Board for allotment
of Coach numbers and Zonal Railways. For carrying out the above activities
following softwares are being operated: -
(a) Jigs &Fixtures Quality Control (JFQC)
(b) Production Management Systems (PMS)
(c) Coach Manufacturing Monitoring System (CMMS)
iii. Stores Department:
Stores department of PU have different purchase offices located at various stations.
The department is headed by the Controller of Stores (COS). The main objectives of
this department are:
(a) To ensure timely availability of quality material at competitive price from
right place and source through e-procurement system of Indian Railways
(IREPS);
(b) Transparency in procurement;
(c) Inventory management;
(d) Material handling;
(e) Vendor development; and
(f) Scrap disposal
To fulfil its basic objectives, the activities carried out by the Stores Department are:
(a) Assessment of demand for placement of Purchase Orders;
(b) Contract management;
(c) Regular follow-up with suppliers to ensure timely supply of material;
(d) Receipt, inspection and accounting of incoming consignments;
(e) Stocking, storage, preservation and custody of stores;
(f) Issue & distribution of material;
(g) Registration and approval of vendors;
(h) Continuous review of requirement to avoid situations of over or under
stocking.
(i) Coordination with various departments of RCF (Planning, Design, Quality,
Finance) and with other units of Railways and Inspection agencies of RCF
(Railway Board, ICF/RWF/RSK, workshops of Zonal Railways,
RITES/RDSO/DGS&D)
(j) Sale of scrap through Public Auction.
iv. Procurement
Purchasing is done in consonance with the policies prescribed by Railway Board,
through competitive bidding. Local purchase is resorted to meet urgent
requirement and for purchase of low value items. High value tenders are examined
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and evaluated by Tender Committees (consisting of 3 Officers-Stores, Finance &
Technical).There are mainly 3 categories of items purchased in a PU:
(a) Material Schedule items: Coach components/assemblies – Demands
(Procurement memo) for these items are generated by Planning Department
based on Quantity per Coach (QPC) and Coach Production Plan.
(b) Stock Recoupment Memo (SRM) items: Demands for consumables and other
items (other than coach components/assemblies) required by shops are also
generated by Stores Depot. This is done on the basis of vetted Estimated
Annual Requirement (EAR) and trend of consumption.
(c) Non-stock items: Non-regular & ad-hoc requirement, such as M&P/Spares/
Furniture/ Computers etc. for which requisitions are prepared by indenters of
consuming department based on their need.
v. Engineering Department
The Engineering department is responsible for construction and maintenance of
all civil engineering works viz. all buildings including residential quarters,
hospital, sheds, workshop structures, goods sheds, water supply, sanitary
installations, railway tracks and all allied structures.
vi. Quality Control Department
Quality Control Department ensures the quality in production as well as
purchased items. The department is also entrusted with the task of
implementation of modern management techniques viz. Integrated Management
System IMS. Customer service, vendor approval as well as eco-friendly steps
initiated by this department.
vii. Accounts Department
The Accounts Department primarily maintains the accounts of PU in accordance
with the prescribed rules. It also conducts internal check of transactions affecting
the receipts and expenditures, prompt settlement of claims, rendering advice to
administration regarding matters of tendering, compilation of budgets,
monitoring the budgetary control procedures from time to time, discharging other
management accounting functions such as providing financial data for
management reporting, inventory management, purchase/contracting decisions,
assessing the financial irregularity (if any) in the transactions of PU.
viii. IT Department:
Information Technology department is responsible for smooth functioning of IT
activities of PU. All applications related to Workshop, Stores, Accounts, Planning,
Design, Personnel, Civil, Hospital and applications of other departments are
managed by a team of IT professionals. IT department is also responsible for
procurement and maintenance of computers, printers, cartridges, CAD &
networking equipment of PU.
ix. Personnel Department
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The Personnel Department is responsible for establishment matters, welfare
activities, industrial relations, policy, rules& regulations of personnel related
matters of other departments. The personnel department carries out recruitment,
training, promotions, transfers, selections, creation of posts, granting retirement
benefits, disbursement of pay and allowances, productivity linked bonus and
maintenance of service and leave records of non-gazetted staff except Railway
Protection Force (RPF). It deals with the recognized unions and arranges meetings
and participation of Railway Employees in Management (PREM) meetings for
settlement of staff grievances. The personnel department is the custodian of all
establishment rules and regulations and their interpretation in service matters.
Many welfare activities like running of staff canteens, election of consumer
cooperative societies, coordinating the running of schools, cultural societies &
scouting activities etc. are also undertaken by the personnel department. The
department also deals with the provisions of various laws and acts promulgated
by the Government of India.
x. Medical Department
Medical Department renders preventive and curative medical services to employees and
retired employees and their families and is headed by the Chief Medical Officer.
Monitoring of activities of medical department is done by Hospital Information
Management System (HIMS). The medical department also interacts with the local
hospital to strengthen the medical facilities.
xi. Electrical Department
Functions of Electrical Department include operation and maintenance of electrical
power supply for lighting, ventilation, air-conditioning in Administrative Block,
residential areas, passenger reservation system (PRS), offices, hospitals, rest house
and water coolers at offices, hospitals, etc. It also undertakes operation and
maintenance of power supply to stations, water supply pumps for workshop and
railway residential colonies. It also takes steps for energy saving such as
distribution of LED lights and use of solar energy.
xii. Signal& Telecom Department
Functions of Signal &Telecom Department include control over Optical Fibre,
Railtel and BSNL leased line. Telecom Department at PU is responsible for
maintenance of all telecom equipment telephone exchanges, associated equipment
and underground cable of telephone exchange. It is responsible for providing
telecommunication infrastructure for Passenger Reservation System (PRS) for
Railways employees. It manages the Railway Information Network (Railnet) and
Public Address System for various meeting and functions.
xiii. Audit Department
Functions of Audit Department mainly consist of auditing sanctions involving
finance, rules, general orders, tender documents, accounts, estimates prepared for
projects, checking of internal audit mechanism, inspections of offices and checking
of all orders/sanctions issued by GM & other officers.
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xiv. Security (RPF) Department
Railway Protection Force (RPF) is an armed force and is responsible for protection
and safety of Railway property. At PU, RPF generally has a setup of executive
branch, fire service branch, dog squad and crime & special intelligence branch. All
these units work under the control and command of Commandant cum Security
Commissioner/RPF. The administrative control of the security department lies
with Inspector General-cum-CSC/RPF of the concerned Railway and general
supervision is under General Manager of the PU.
xv. Vigilance Department:
The main objective of vigilance department is to create vigilance consciousness
among the officers, supervisors and staff of PU and also assist the external
vigilance for administrative function at all levels. More emphasis is placed on
preventive and educative vigilance.
5.1.4 Management Information System (MIS)
PU prepares various reports to fulfil the requirements of senior management. Some of
the finance and accounts related MIS reports include:
i. CO6 report;
ii. Report on balances under suspense heads;
iii. Workshop Manufacturing Suspense (WMS);
iv. Review of material management;
v. Stock and dues position;
vi. Tender related reports, etc.
5.1.5 Understanding of Existing Software Systems
The IT systems available in RCF Kapurthala are as under:
1. Financial Accounting System (FACT)
2. Material Management System (MMS)
3. Employee Accounting System (EASY)
4. Personnel Information System(PINS)
5. Scrap Disposal System(SDS)
6. Employee Incentive System(EICS)
7. Coach Manufacture Monitoring System(CMMS)
8. Cash Imprest
9. Time Office Attendance System(TAMES)
10. Civil Engineering Works(CEW)
All the programmes have interfaces with each other. In addition to the above other
software which are in use at RCF Kapurthala are as under:
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i. Protective Clothing
ii. Plant Maintenance System (PLANS)
iii. Integrated Design Monitoring
iv. System for Employees
v. Production Management
vi. Jigs and Fixture Quality
vii. Security Management
RCF’s integrated application
The above diagram depicts
Kapurthala. All the above
Kapurthala team. A brief descriptio
i. Personnel Information
viz. personal data, family,
recruitment of employee
from Time Office Maintenance
attendance and work
information is recorded
fetches information
accounting system and
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Clothing Management system (PCMS)
Plant Maintenance System (PLANS)
Monitoring System (IDIOMS)
Employees Enquiry (SEE)
Management System(PMS)
Quality Control (JFQC)
Management System (SMS)
application system is the main interface for all applications.
Integrated Data Sharing
depicts various applications which are currently
above applications have been developed in house
description of the applications is given below:
Information System: - It stores the information related
family, service leave, training, pass and other
employee in special category. This system fetches
Maintenance system which keeps the record
work time. After calculating their salary and
recorded in the financial accounting system.
from employee incentive calculation system,
and hospital information system.
Scope Evaluation Report
applications.
currently in use at RCF
house by the RCF
below: -
related to employees
other details as well as
fetches the information
of the employees
other wages, the
This system also
system, employee
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ii. Employee Accounting System: -This system deals with payroll, income tax,
productivity linked bonus (PLB), electricity billing, employee quarter dues, pay
commission and other activities. This system also records the present and future
projections related to the employee and other activities. This system interacts with
employee incentive calculation system and personnel information system to
prepare their salary and wages at the end of the month.
iii. Financial Accounting System: -It deals with books, bills, establishment, works,
material, NPS, material accounting, cash handling and other activities. All
transactions related to material procurement are recorded in the financial
accounting system. The financial accounting system also interacts with scrap
disposal system. The expenditure done by the works department is also recorded
in the system. The cash imprest system also interacts with FACT.
iv. Integrated Design Monitoring System (IDIOMS): It deals with detailed
description of components and material pertaining to the different type of coaches.
The IDIOMS interact with Production Monitoring System. This system also deals
with Material Management as well as Drawing Management System.
v. Material Management System: It deals with Planning, Procurement and
disbursement of material for coach production (as per annual RSP and other items
which are of miscellaneous nature (Non Stock Items). The quantity related to each
type of coach is entered in the system and system does not allow booking of
material more than the specified quantity. Higher quantity can be taken only after
approval of competent authority.
vi. Receipt Inception Management System: This system works with material
management system. Only authorised department or production unit can issue
receipt for material. The system closely interacts with material management
system and security management system.
vii. Hospital Management Information System (HMS): It deals with registration of
patients, procurement of medicine, information on pathology & radiology and
daily patients queue position. The HMS also interacts with financial accounting
system to record the expenditure spent. It also interacts with personnel
information system to store the data.
viii. Works for Civil Engineering: It keeps record of generation of estimates, tenders
and execution of civil work required in RCF. All the expenses related to the civil
works and planning and construction are recorded in the Financial Accounting
system.
ix. Computer Hardware Management System (CHARMS): It deals with all hardware
equipment, their maintenance, downtime calculation and AMC bills processing
and other activities related to computer hardware.
x. Time Attendance Maintenance System: It deals with attendance of workshop
staff. This system is connected with punching machine and calculates their
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working hours. This system fetches the information from punching machine and
also works closely with Employee Incentive Calculation System and Personnel
Information System for calculation of wages and salary.
xi. Employee Incentive Calculation System: - It deals with incentives of all regular
employees based on the working hours.
xii. Production Monitoring System: It deals with generation of load charts for
machines in relation to work order. This system stores all the flow charts
pertaining to each type of coach. This system closely interacts with Integrated
Design Office Management System as well as Material Management System.
xiii. Scrap Disposal System: It deals with generation of estimates, tenders and
execution of sale of scrap. After measuring in terms of quantity, higher authorities
give approval for tender which is released by the PU. This system is responsible for
execution of the scrap sale and sale amount received is updated in the Financial
Accounting System.
xiv. Cash Imprest System: -All transactions which are related to petty cash are
recorded in this system. This system interacts with various systems like Financial
Accounting System, Employee Accounting System and Personnel Information
System.
5.2 Review of Existing Accounting System
The Accounts Department comprises of various sections and a separate code is assigned
to each section. Each section is headed by a Senior Section Officer (SSO)/Section Officer
(SO). Following are the sections in the Accounts Department of PU:
5.2.1 Sections in the Accounts Department
i. Administration –This section deals with general administration work, e.g.
departmental examination, records of attendance, allotment of residential quarters,
etc. This section is also in charge of Estate Management. For example, supplying of
office stationery to every section as per requirement, repair & maintenance of office
equipment.
ii. Inspection and Audit–Inspection section deals with inspection of various offices
for monitoring deficiencies/irregularities with regard to establishment matters,
stores and construction. Further, if any objection is raised by the external auditors,
then this section makes necessary arrangement to respond to the Audit objections.
iii. Store Finance Section – Store finance section is responsible for vetting of all
financial proposals and estimates related to the Stores Department.
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iv. Stock Verification Section- This section is responsible for periodic verification of
all stock, non-stock and Tools and Plants Items (T&P), which are maintained in the
stock registers by different departments and also witness sale of scrap.
v. New Pension Scheme – This section deals with matters pertaining to the new
pension scheme e.g. to monitor the employee contribution/Employer contribution,
keeping necessary records as applicable, to ensure timely payment of NPS to
regulatory bodies, etc.
Regularity in uploading Subscribers Contribution File SCF:
At PU, the SCF is uploaded on the National Securities Depository limited (NSDL)
site immediately after passing of the salary bills and the funds are transferred to
Trustee Bank after uploading of SCF. At present RCF has 03 wage periods. Hence
data is uploaded and funds are transferred thrice a month.
vi. Provident Fund (PF) Section – This section is responsible for recording all
transactions pertaining to provident fund. Maintenance of PF ledgers, passing
entries for PF received from employees, withdrawal from PF, Loan against PF
balances, etc.
vii. Pension Section–This section maintains all records relating to payment of pension.
For example, preparation of Pension Payment Order (PPO), revision in PPO and
Review of pension paid, etc.
Every month provision is made for Pension Fund through JV as per Railway Board
allotment and the following entry is passed:
WMS (00123092) DR Xxx
To Appropriation to Pension Fund (12319500) CR Xxx
Entry for interest on Balance fund:
Deposit with Reserve Bank (1690600) DR Xxx
Interest on Pension Fund (12320100) CR Xxx
As per Railway Board’s guidelines, PPOs are issued through ARPAN (Advanced
Railway Pension Access Network) w.e.f. from 31.08.2014.
Spot verification of Pensioner’s Bank Account: -
A team of Accounts officials has been formed for verification of Pension Bank Accounts
of beneficiaries at the spot in respective Banks. The accounts have been spot checked and
excess payment made by Banks has been deducted and recovered from pensioners.
viii. Establishment Section – This section maintains the service sheet of employees and
deals with all service matters. Payment of salary, advance under civil grant, Group
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incentive, Productivity Linked Bonus (PLB) and Medical reimbursement. This
section also deals with service record of Gazetted Officers of PU.
ix. Expenditure Bills Section - This section records all type of contractors/suppliers
bills, utility bills, imprest bills, etc. and reviews the bills of all contractors in respect
of works contract with the measurement book before making any payment. This
section also maintains records of all Security deposits, Earnest Money Deposits
(EMD) received from contractors/suppliers.
x. Expenditure Finance Section–This section accords concurrence and vetting to of
proposals, contracts (Annual Maintenance Contracts, repair and maintenance,
Preliminary Works Programme (PWP), Machinery & Plant (M&P) programme)
other than stores.
xi. Budget Section – Budget section deals with preparation of budget and monitoring
of the same through regular review in the form of August review, Revised Estimate
(RE), Final Modifications (FM) I and FM II. It allocates the funds allotted by the
Railways Board to executive departments. It prepares appropriation accounts after
the closing of the financial year and submits to Railway Boards through Audit.
xii. Books Section – Books section is the compiling section. Preparation of cheque for
payment is done by this section. Books section also prepares monthly account
current. This section also deals with the following:
REMITTANCE TRANSACTIONS
i. Reserve Bank Suspense (RBS):
(a) It is a suspense head operated for settling INWARD transactions from
other Accounts Officers (Except for Cheques & Bills and Remittance
into Bank).
(b) As and when, the ADVICES are received from RBI; the RBS A/c is
debited (in case of receipts) or credited (in case of expenditure).
(c) On receiving "CLEARANCE MEMO" from RBI-Reserve Bank of India,
the a/c RBS is cleared by contra Debit or credit to Reserve Bank
Deposit (RBD).
(d) All balances under RBS should be NIL at the end of financial year i.e.,
31st March. If any balance is left over, the same is transferred to
Miscellaneous Advance Receipt (MAR) (if debit balance) or to Deposit
Misc. (if credit balance) as the case may be.
The following entries are passed while recording the transactions relating to RBS:
1. When Advice is received:
Service Head DR Xxx
To Reserve Bank Suspense CR Xxx
2. When clearance is received from Reserve Bank of India
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Reserve Bank Suspense DR Xxx
To Reserve Bank Deposits Railway CR Xxx
ii. Cheques and Bills: The following entries are being made: -
1. When Cheques are issued:
Service Head DR Xxx
To Cheques and Bills CR Xxx
2. When Cheques are encashed:
Cheques and Bills - CR Xxx
To Public Sector Bank Suspense CR Xxx
3. When clearance is received from Reserve Bank of India
Public Sector Bank Suspense - CR Xxx
To Reserve Bank Deposits Railway CR Xxx
iii. Remittance into Bank:
1. When cash is deposited into bank by the chief cashier or anyone on behalf of
Railway:
Remittance into Bank DR Xxx
To Service Head CR Xxx
2. Scroll from Focal bank:
Remittance into Bank - DR Xxx
To Public Sector Bank Suspense CR Xxx
Reserve Bank Deposits - Railway - DR Xxx
To Public Sector Bank Suspense CR Xxx
Note: -The suspense head Public Sector Bank Suspense is operated only in respect of
Remittances/ withdrawals from Public Sector Banks. This head is not operated when the
transactions are made to/ from RBI branches directly.
Balance under the Head Reserve Bank Deposit Railways is transferred to the Head
Govt.
xv. Workshop, Costing &Taxation Section: This section prepares the workshop
manufacturing suspense account at the end of every month, raising of debits
against Railway Board production plan for Rolling Stock Program (RSP) coaches on
monthly basis and vetting the pricing format in respect of each coach. This section
also works out the average rate of labour, overheads and on cost budget for
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working out the cost of the product manufactured in house. It also prepares the
budget for the production activity and conducts the regular budgetary reviews.
Besides this the record of staff benefit fund also being maintained in the section. At
the end of every year Batch Cost Report is prepared in respect of coaches
manufactured during the year and the same is submitted to the Railway Board.
This section also raises the Transfer Certificate (TCs) to other Railways against the
transfer of material. Allocations have been created for proper booking of Excise
Duty, Counter veiling Duty (CVD) and Service Tax payments.
xvi. Stores Ledger Section: This section deals with inventory control, Stock
Adjustment Account, pricing of stock, clearance of store suspense account, store
Imprest, inter railway transactions, sale of scrap, returns related to VAT, etc. It also
submits the annual reports to Railway Board related to stores.
xvii. Stores Bill Section: This section deals with checking and making payment of
supplier bills, LC, etc. It also keeps a proper record of payments released and
ensures the recovery from suppliers. This section also maintains the records of all
security deposits, EMDs received from suppliers.
5.2.2 Mapping of Current Process at PU
The mapping of current accounting processes of PU has been carried out to understand
all the components of the existing accounting system; the extent of prudence and
propriety of the system in practice and to find out the gaps in the present system from
the viewpoint of implementation of accrual based accounting system. Apart from the
mapping process as mentioned in chapter 4 of this document, following are the
additional areas in PU:
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S. No. Transactions Process Accounting and Records
Maintained
Accounting for Employee Benefits
1 Staff Benefit
Fund
There is a staff benefit fund in Indian Railways. This fund is used for Railway employees in
the following fields:
i. Higher education of children especially for promoting education to Girl Child.
ii. Provide assistance to differently abled children.
iii. Sports activities.
iv. For promoting alternative system of medicine i.e. Homeopathy.
v. For promotion of scouts and guides & cultural activities.
vi. Provide assistance to economically weaker employees on account of medical
ground.
vii. Provide funeral expenses and immediate assistance to families of deceased Railway
servants.
viii. Provide assistance to various clubs.
Every year, Railway Board allocates specific amount on the basis of working non-
gazetted employees. Meeting is held with all SBF members to allocate SBF amount to
various activities.
Following entry is passed at the time of creation of Fund under SBF:
App. to SBF (00123109 WMS) DR XXX
To Staff Benefit Fund (13103900) CR XXX
At the time of making payment from SBF for the specific purpose, the following
entry is passed.
Accounting
Accounting entry passed
in Books Section.
Books & Registers
maintained
SBF Register
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S. No. Transactions Process Accounting and Records
Maintained
Staff Benefit Fund (13103900) DR XXX
To suspense head Cheques &Bills CR XXX
Employees give applications in prescribed format to competent authority for
granting assistance from staff benefit fund.
Competent authority determines assistance available to each employee on the
basis of number of applications received, availability of fund and applicable
norms/rules.
After determination of amount, Pay order is issued by the competent authority
which comes to SBF section for recording.
Fund position is monitored in accounts department and at the end of the financial
year, balance amount under SBF along with simple interest @2% is carried
forward to the next financial year.
The following entry is passed when interest on SBF is carried out:
Deposit with Reserve Bank (16900600) DR XXX
To Staff Benefit Fund (13103900) CR XXX
Accounting for Liabilities
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S. No. Transactions Process Accounting and Records
Maintained
1 Labour Cess RCF deducts 1% labour cess from all civil, electrical and mechanical contractors from
their bills and credited to deposit Misc. Account.
While deducting the labour cess, following entry is passed :
Service Head DR XXX
To Deposit Misc. (14110000) CR XXX
The labour cess so deducted is deposited with the Assistant Labour
Commissioner through DD every month. Following entry is passed to record
the transaction:
Deposit Misc. (14110000) - CR XXX
To Suspense head Cheques & Bills CR XXX
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5.3 Understanding of Workshop Manufacturing Department
5.3.1 Materials and its Accounting Treatment
The Stores Department in a Production Unit deals with procurement/Purchase, receipt,
custody and issue of materials, Machinery & Plant (M&P), Tools and consumable stores
required for production and service Department, inventory management and disposal of
scrap material.
i. Receipt of Materials: On receipt of materials in the receipt branch these are checked
with relevant Purchase Orders and after inspection and their acceptance by the
Inspecting Officer, a Receipt Note is prepared which shows the allocation as final head
or stores suspense and the material is passed on to the ward keeper or the department
concerned. Imported stores are also verified with reference to the advice of despatch.
The vouchers are posted in the numerical and priced ledgers as receipts and accounted
for by debit to 'stores suspense' or final head as the case may be, by credit to purchases.
If in any month Receipt Note is received before actual receipt of materials, the debit is
held temporarily under 'stores-in-transit' account till materials are received.
In case of imported stores, the value of materials as ascertained from Invoice
Distribution statement together with sea-freight, port, custom charges, etc. is debited to
stores suspense (or final head of a/c) and credit to purchases imported to the extent of
prime cost and different standing work orders for sea freight, port charges, custom duty
etc.
Materials manufactured in shops are accounted for through material tags and priced at
price list rates. The value of the material is debited to stores suspense by credit to
workshop manufacture suspense account.
Materials no longer required by shops and offices are returned to stores depot on
'Advice Note of Returned Stores' and the value thereof is accounted for as debit to
'stores suspense' and credit to shops or departments concerned against specified work
orders or final heads of accounts.
Transfer of materials from one Priced Ledger (PL) No. to another within the same
Depot is made through Book transfer forms. Adjustments necessitated by stock
verification are made through Departmental or Accounts stock verification sheets
surpluses being shown as debit and deficiencies as credit to stores suspense by credit or
debit to stock adjustment account as the case may be.
Materials are sometimes supplied to outside firms or other Railway units for
fabrication, reconditioning, etc. In these cases, issue notes are prepared and the value is
debited to 'miscellaneous Advances', and when the materials are received back duly
fabricated or reconditioned they are received on Receipt Notes, which are valued at the
original cost of materials plus fabrication charges and accounted for a debit to 'stores
suspense' and credit to 'Miscellaneous Advances'. The extra credit balance lying under
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'Miscellaneous Advances' represents fabrication charges and is cleared on payment or
adjustment as the case may be.
ii. Issue of Materials: The process of accounting of material issue is as under:
(a) Material Requisition: Raw material required for manufacture in the shops are
drawn through material Requisition released by the sub store and after necessary
posting in the ledgers, is accounted for by debit to various work orders concerned
and credit to stores suspense.
(b) Issue Notes for consumable stores etc.: Consumable stores for repairs and
maintenance etc. are drawn on Requisition-cum-issue Notes (Form S. 1523) which
after posting in ledgers, are accounted for as debit to various work orders
concerned and credit to stores suspense.
(c) Issue Notes for Sales: Materials sold to outsiders, railways or employees are
transacted through issue Notes (S-1314) and accounted for by debit to sales and
credit to 'stores suspense'/ W.M.S.
5.3.2 Preparation of Stores Sub ledger
Store Sub Ledger: - Materials for coach production and in the workshops are obtained from
the following sources: -
(a) Through main stores
(b) Through direct supply orders
(c) From other Railways/workshops.
The materials from the main stores are drawn by the production department on requisition-
cum-issue notes. Shop-wise and Work-Order-wise summary of materials drawn from the
main stores by the production department through requisition cum issue notes is prepared in
the stores sub-ledger. From this shop-wise and work-order wise summary is also drawn to
show the cost of direct material in WMS account. Store Sub Ledger is prepared in terms of
Para W-627 of Mechanical Code. Work-order wise and shop wise summary is also posted in
Work shop general register (WGR)
5.3.3 Reconciliation of Gate Attendance with Labour Booking
i. Gate Attendance: As per Para 220 of Indian Railway Mechanical Code each workman
has to punch his Gate Attendance Card two times in the first half and two times in the
second half of the day.
ii. Labour Booking : The assignment of production work to the artisan Staff is done by the
Shop in charge. The Time Book is written up daily and made available to Time-booth
Clerk for necessary posting in the Time Sheets7*
7 Time sheet is the record that shows the time for which wages are earned by each workman during a
wage period as distributed over the different work orders on which he had been engaged during that
period.
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At the end of each month an abstract of gate attendance and actual labour booking by
the concerned supervisors is generated and reconciled through computer. Differences, if
any, are investigated and advised to concerned works managers for necessary
adjustments. This reconciliation is necessary to ensure that the payment made to the
workers is properly charged to the relevant work order.
iii. Preparation of labour Sub ledger : The summary of total labour amount booked in
different shops against each work order is called Labour Sub-Ledger (Para 522 of
Indian Railway Mechanical Code). Shop-wise and category-wise labour amount on a
particular work-order is allocated/calculated by multiplying the Labour Rate of that
particular artisan' s category with the hours booked in that shop on the work-order.
The detailed calculation of labour average rate and incentive are given in costing
section.
5.3.4 Compilation of Overheads
Overheads: Besides direct expenditure on labour and materials incurred on a job, there is
certain expenditure which cannot be directly charged to jobs but included in the cost of
production on certain equitable basis. This indirect expenditure is termed as overheads.
The expenditure incurred by the cost centres are collected under a system of work-orders (In
terms of Para W-804). Work orders are of two types: -
i. Non-Production Work Orders: - These are used for collection of indirect expenses i.e.
overheads. The allocations/work orders starting with 0011, 0012, 0013 and 0014 are
non-production work orders.
ii. Production Work Orders: - These are used for collection of direct costs of manufacture
of coaches. These work-orders start with 0050 to 0099. The apportionment of overheads
to direct cost is detailed in costing section
5.3.5 Workshop Manufacturing Suspense Account (WMS Account)
It is a Suspense Head of Account under Capital (7200) under Demand number 16. It is
operated upon to accommodate expenses incurred on labour, material and on-cost charges
expended on various jobs. The labour pay sheets when passed for payment are allocated to
the head 'Labour' under WMS Account which is cleared to various jobs with reference to the
Time/Tally Sheets. Debits on account of materials issued to various jobs are allocated to
various work orders under the WMS Account. Overheads charges i.e. shop-on-cost and
general on-cost incurred are charged to on-cost work orders under WMS Account and spread
to various jobs on the basis of pre - determined rates, labour, material and on cost charges so
booked are accumulated in Workshop General Register which is a detailed subsidiary
register of WMS Account. Charges appearing in Workshop General Register against various
Work Orders are summarized in out-turn statements WMS Account Current is compiled and
journal entries prepared for incorporation of the transactions affecting Workshop
Manufacturing Suspense Account in the Finance Accounts. It is a monthly statement showing
total expenditure made on production of coaches. This statement has following sides.
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i. Debit Side: Debit side of the statement contains the following items: -
(a) Labour payments - from labour schedule (Labour L7)
(b) Store material - from daily issue notes (Store L7); and
(c) On cost charges of labour and store both (Cash L7, Store L7 and Adj L7)
ii. Credit Side: Credit side of statement has following items:
(a) Transfer of manufactured coaches to Railway Board
(b) Items returned to store (Minus Debit)
(c) Amount of work done for other railways/ departments/NRC ((Minus Debit)
(d) Works in Progress (WIP)
Labour and Store amount is entered from Workshop General Register and all the credits are
obtained from outturn statement. Credits belonging to other workshop/railways are done
through Journal Voucher entries.
Element-wise details of WMS Debit and Credit Account
Debits Credits
Shop Labour :-
The cost of wages incurred in a workshop as
a 'Direct Cost' to operations i.e. Artisans of
various shops is booked to WMS Account
against appropriate work order and indirect
cost of labour is booked under factory
overhead.
Returned Stores: -
All the materials no more required
by the consuming departments
should be returned to the nominated
stores. Such materials are returned
along with an Advice note for
returned stores (form No. S-1539)
prepared in 6 copies.
Depot Stores: -
Actual consumption of stores done through
form S-1313 by the Executive is passed
through JV and is checked to see that the
debits booked to WMS are correct by
ensuring correctness of rates and quantities
(Abnormal shop drawls’) by reconciling
store L7 summary on monthly/ annually
basis.
Amount of work done for other
Railways/Departments: -
Based upon the requirement of other
railways, certain in house, such type
of work is carried out and the value
realised is shown as minus debits in
the book of account to ensure proper
booking prior concurrence of such
activity is taken from finance so that
monitoring of booking of such
transactions can be done.
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Preparation of Cash and Adjustments of L7
Cash L-7 / Adjustment L-7: - Allocation-wise data for cash payments made by different
sections (relating to Workshop) and adjustments made through journal vouchers (relating to
workshop) is compiled in Cash L-7 and Adjustment L-7 respectively. It is prepared every
month before preparation of WMS Account.
5.3.6 Monthly and Annual Workshop General Register (WGR)
This register is prepared every month under which all labour booked, overheads levied and
store charges are added and credit is given for returned stores. Following steps are required
to be taken while preparation of WGR:
Direct Purchases:-
Purchases made through Non-Stock Indents
are accounted under this element of item.
Indents are checked to see that the Funds are
available under WMS and the repeated
purchases made through Non stock Indents
are proposed for stocking to attain the
advantages of Bulk Purchases.
Works in Progress
The Accounting treatment for Works
in Progress (WIP) describes under
head of 7200 against various batch
orders. It includes the elements of
labour, material, and overhead cost.
Any balance in the form of
suspended jobs, wrong accounts, etc.
is set aside and effort is made that it
should reflect the correct position for
the actual work in operations.
Annual review is carried out at
FA&CAO level. It is observed that
WIP is remains 4-5 %. Of the total
credits.
Miscellaneous Adjustments:-
Appropriation to DRF, pension, staff benefit
fund and electricity charges, and stock
adjustment if any is shown under this head
of debits.
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5.3.7 Vetting of Price Formats
The estimated transfer price of
Pricing Formats (In terms of Para
Direct Labour, Overheads and
i. RSP No. and Work Order
ii. No. of Coaches to be manufactured
These are prepared by the Chief
Accounts Office for vetting. While
cost taken in the Pricing Formats
Material Planning for the financial
should match with the Pink
should be same as per the Railway
transfer price of coaches is fixed.
Step 1
•Work order wise time is booked by the Production Shops and value of direct labour is worked out by the computer based based upon wages drawn by direct labour.
Step 2
•Summarised notes of material drawn by the shops against different work orders is prepared for store related expenses.
Step 3
•Data of Time sheet is generated by system and tally sheet is prepared dully reconciled with hours booked with gate attendance and variation if any is set right and labour L7 is prepared
Step 4
•Data of summarised notes of stores is prepared in stores subsystem.Besides this the coach material procured directly by the shop floor is also entered in it.
Step 5•Credit is given for Store return.
Step 6
•Journal vouchers are prepared for the material drawn from depot, appropriation to DRF, pension, SBF and for inter Railway Transfer vouchers.
Step7
•Finally the total of all transaction in work order wise display in the Workshop General Register. There is no manual intervention in the generation of the WGR.
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Formats
of the coaches to be manufactured is prepared
Para W-1402) indicating the estimated cost
and other relevant Information like: -
No.
manufactured under the work-order
Chief Mechanical Engineer’s (CME) Office
While vetting the pricing formats it is ensured
Formats should be as per Material Schedules
financial year, the RSP No. mentioned in the
Book and the number of coaches proposed
Railway board’s production Program. Based
fixed.
Work order wise time is booked by the Production Shops and value of direct labour is worked out by the computer based based upon wages drawn by direct
Summarised notes of material drawn by the shops against different work orders is prepared for store related expenses.
Data of Time sheet is generated by system and tally sheet is prepared dully reconciled with hours booked with gate attendance and variation if any is set right and labour L7 is prepared.
Data of summarised notes of stores is prepared in stores sub- ledger L7 through system.Besides this the coach material procured directly by the shop floor is also
Credit is given for Store return.
Journal vouchers are prepared for the material drawn from depot, appropriation to DRF, pension, SBF and for inter Railway Transfer vouchers.
Finally the total of all transaction in work order wise display in the Workshop General Register. There is no manual intervention in the generation of the WGR.
prepared in the form of
of Direct Material,
Office and received in
ensured that the material
Schedules prepared by the
the pricing formats
proposed to manufacture
ased upon this, the
Work order wise time is booked by the Production Shops and value of direct labour is worked out by the computer based based upon wages drawn by direct
Summarised notes of material drawn by the shops against different work orders is
Data of Time sheet is generated by system and tally sheet is prepared dully reconciled with hours booked with gate attendance and variation if any is set right
ledger L7 through system.Besides this the coach material procured directly by the shop floor is also
Journal vouchers are prepared for the material drawn from depot, appropriation to
Finally the total of all transaction in work order wise display in the Workshop General Register. There is no manual intervention in the generation of the WGR.
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5.3.8 Transfer of Goods from Workshop to Other Railways
PU also produces and transfers semi-finished material to other railway customers. PU issues
the transfer certificate to the other railways on the completion and delivery of the materials to
be supplied.
Generation of transfer certificate- process in brief: -
i. Preparation of cost sheet of the material to be supplied by the material planning
department.
ii. Sanction for sale: - After the vetting of cost sheet by the finance department, the sale
order is prepared by the finance department which ensures that material and labour is
booked as per the cost sheet.
iii. Gate pass is generated on dispatch of shop made material to the concerned railway
indicating description, no. of packages, voucher no and date to whom sent and
purpose, whether railway or private party.
iv. Issue Note: - This is issued to the concerned railways indicating the material handed
over to the consignee.
5.3.9 Raising of Debits on Railway Board for Coaches Manufactured during
the Month
On manufacturing of coaches during the month, statement/ transfer certificate is issued by
the PU to Railway Board for the credit realisations on the production and transfer of coaches
to the respective consignee.
Transfer Certificate is issued to the Railways Board only after the allotment of coach number
to the respective railway. If coach number is awaited but respective railway consignee is
disclosed, then also transfer certificate can be issued to the Railway Board.
PU issues to the Railway Board such transfer certificate in the following ways:
Actual debits of Rolling Stock Programme (RSP) of manufactured coaches.
Differential Debits of RSP Coaches for the financial year, if any.
5.3.10 Production for Non-Railway Customers (NRC)
These are works that are done by Indian Railways for the private parties and various other
Government organizations. For example, manufacturing of coaches for Bangladesh Railway
through RITES, DRDO, Defence, NTPC, etc. And difference between actual sale price and
cost of production is to be shown in developmental suspense.
5.4 Fixed Assets Register at PU
Proper recording of fixed assets is important for every organization. A register is maintained
for Plant, Machinery by CPE office. Monthly capital account current is prepared for all the
additions and deletions on assets and from that Block account is prepared in which opening
value, addition and deletion value of assets is written.
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The departments have submitted information of fixed assets as per the formats advised by
ICAI-ARF. Each department also maintains a Tools and Plant Register (T&P) containing only
the quantitative details of assets recorded. However, cost is mentioned only for those
items/assets, which are added during the current financial year. This Tools & Plant register is
updated/physically verified after every two years. Life of these assets is also determined as
per codal provision. In PU, as there is no revenue account current in operation. The values of
all tools and plants are booked under WMS Account and the same is being realised through
Coach Cost. At present, no depreciation is charged directly on any assets. However, each
year Indian Railways contributes a certain amount to the Depreciation Reserve Fund (DRF)
in relation to the expenditure on renewal and replacement of assets with respect to Indian
Railway as whole. The creation of fund is not need based for PU and which ultimately result
in increase in cost of the coach.
5.5 Stores Department
It is one of the most important Departments in PU. Stores accounting relating to PU is carried
out at Depots such as:
i. Shell Depot
ii. Furnishing Depot
Further, there are various wards in above depots. Following activities are undertaken by the
Stores Department:
i. Purchase of Stock;
ii. Receipt and Issue of Material for Fabrication
iii. Issue of material for manufacturing;
iv. Transfer to Shop or consignee;
v. Depot to Depot transfer;
vi. Stores Return;
vii. Sale of scrap,
viii. Departmental Stock verification
Here, first of all, material request is sent by the shop or concerned department to the store
depot. If the material is available in the depot, then the same is issued to the
shop/department. Issue note is generated for every issue in five copies. Two copies are sent to
the consignee, third copy is retained at the depot, fourth and fifth copies are sent to the
Accounts Department. The Accounts Department returns the fifth copy to the consignee after
making necessary accounting entries. All the details of the request are entered in the Issue
Note.
If there is any difference in the Receipt Note and Issue Note of material, then the same is
reflected in Stock Adjustment Account. Whenever material is issued, an issue note is
generated by depot periodically and is sent to Accounts Department. All the details of
consignee, date of purchase, type of material, value of material, etc. are written on the Issue
Note.
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6 Central Organisation for Modernization of Workshop-
COFMOW 6.1 Introduction8
The Central Organisation for Modernization of Workshops (COFMOW) was established in
1979 under the Ministry of Railways by the Government of India with headquarters at New
Delhi. COFMOW is a centralised agency of Indian Railways and is responsible for
modernisation of Railway Workshops/Production Units and for carrying out procurement of
specialised machinery and plant and induction of modern workshop technologies. Since its
establishment in 1979 COFMOW has assisted in modernizing Indian Railways Production
Units and maintenance workshops.
COFMOW is in a position to offer its services to those needing modernization or up
gradation of their manufacturing/maintenance activities. COFMOW provides professional
advice and a single window service in planning and procurement of machine tools and allied
equipment. The activities performed by the COFMOW are as follows:
Guide railway customers in selection of manufacturing technologies and Machinery &
Plant (M&P).
Prepare detailed technical specifications for procurement of M&P.
Procurement of M&P and commissioning at site.
Coordinate turnkey works associated with M&P.
Training of workshop personnel in operation and maintenance of machines.
Coordinate warranty services with vendors.
Undertake industrial engineering and layout studies.
Conversion /reconditioning of machines and manufacturing lines.
Designing standard processes, layouts and facilities for overhaul/ maintenance of critical
subassemblies.
Promoting indigenization of M&P items.
Support rolling stock tot projects like LHB coach, GM diesel loco and ABB loco by
purchasing special purpose M & P.
COFMOW is uniquely placed for providing consultancy in designing and execution of
projects for manufacturing repair and maintenance facilities, specifically it provides:
Professional advice for all aspects related to manufacturing, maintenance and repair
facilities.
Techno economic and feasibility studies.
Contract planning and administration.
Project management.
8 Source: www.cofmow.gov.in
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Manpower planning and training in maintenance and operation of equipment.
Post project appraisal.
Procurement of all type of sophisticated plant and machinery, machine tools and allied
equipment to suit special requirement and also for general purposes.
Thus, it seem to be a single window service organisation engaged in procurement of
machinery and plant on behalf of the Zonal Railways/Production Units/Workshops
according to the terms and conditions mentioned in the Machinery and Plant (M&P)
program as issued by the Railway Board for each of them. The organisation structure of
COFMOW is as follows:
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6.2 Organization chart of COFMOW
Chief Mechanical Engineer
Chief Mechanical Engineer (PCM)
Chief Mechanical Engineer (P)
Chief Project Manager
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COFMOW
Chief Administrative Officer
Chief Mechanical Engineer
Dy. Chief Mechanical Engineer -I
Dy. Chief Mechanical Engineer -II
Dy. Chief Mechanical Engineer -III
Dy. Chief Mechanical Engineer -IV
Dy. Chief Project Manager
Dy. Chief Electrical Engineer
Controller of Stores
Controller of Stores-II
Dy. Chief Material Manager-I
Dy. Chief Material Manager-II
FA&CAO
FA&CAO-II
Dy. FA&CAO
Chief Electrical Engineer
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Every year, Railway Board analyses the running work and the work to be done for the
betterment, enhancement, efficacy, etc. of the Indian Railways. For this purpose all the
information related to the works viz. Name of the work, Sanctioned cost of the work with
source of fund, Expenditure incurred at the end of the financial years, revised outlay,
proposed outlay, etc. are provided in Pink Book.
Railway Board prepares Machinery and Plant (M&P) programme for each Zonal
Railway/Workshop/Production Unit which is issued to these units. M&P programme
contains the funds provisioning limits for each of them. As per their requirement of plant
and machinery and fund availability, each unit, sends its indent to the Mechanical
Department of COFMOW for procurement.
However, it may be noted that M&P item costing up to Rs. 30 lakhs is procured by the Zonal
Railways/Production Units concerned, without seeking dispensation from COFMOW subject
to exception list issued by COFMOW and items covered under COFMOW’s rate
contract/price agreements. For all other items i.e., M&P items costing more than Rs. 30 lakhs
and exception list, Railways/Production units are not authorised to procure machines
without prior clear dispensation from COFMOW.
For procurement of M&P items a monthly cash authorisation is provided by Railway Board
and 5% variation is allowed on the same. However, COFMOW is not required to prepare
separate budget for procurement of M&P items since cash authorisation is provided under
Non plan budget i.e. expenditure incurred on behalf of other Zonal
Railways/Workshops/Production Units.
6.3 Procedure for procurement of M&P items
COFMOW follows the prescribed tender process for procurement of plant and machinery or
any other item as requested by Zonal Railway/Production Unit. Firstly, COFMOW reviews
all requisitions received from Zonal Railways/Production Units. After finalization of
requisitions, these are forwarded to the Stores department. On the basis of the requisition,
Stores department invites tenders.
There are two types of Tender:
i. Indigenous Tender: This type of Tender is required to procure the machinery and plant
from India and only Indian suppliers are eligible to participate for this tender in Indian
currency.
ii. Global Tender: If any item is required to be procured from outside India, Global tender
is invited for the same. However, global tendering can be made after obtaining approval
from the finance department.
Further, tendering can be categorized into single packet system and two packet system and
these systems are followed as per limit of cost of Machinery set by Railway Board:
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a) Single packet system: In this system tender is simultaneously evaluated financially
and techno-commercially and lowest price (L1) from all the bids is accepted if L1 is not
suitable then they go the L2.
b) Two packet system: In this system technical evaluation of tender is done first and after
it financial evaluation is done.
For every tender a Tender Document is prepared and uploaded on the website. This
document consists following:
Bid Document Part –I have the standard conditions of the tender;
Bid Document part – II have the machine specific conditions;
Special condition of tender
Notice for inviting tender
Corrigendum
The evaluation of tenders is done in following three stages.
Firstly, Tender is commercially evaluated by Stores department;
Thereafter, the technical evaluation is conducted by convener of mechanical department;
and
Finally tender committee (it includes three members from accounts, mechanical and
stores department) makes the recommendation to the accepting authority (Accepting
authority is always one grade higher than the tender committee) and it issues letter of
acceptance (LOA) to concerned unit and supplier.
When LOA is issued a contract is prepared by the stores department and this contract is
vetted by the finance section of accounts department. On the vetting of contract it is
processed for further proceeding to stores department again.
6.3.1 Accounting aspects of procurement of Machinery and Plant:
Presently, COFMOW uses the Accounting Information and Management System (AIMS)
software for recording the accounting transactions and book keeping. However, the Account
Current is prepared in EXCEL.
COFMOW charges direction and general charge at the rates prescribed by the Railway Board
as a commission from the consignee. However, these days COFMOW is charging D&G
charges on actual basis by preparing budget estimate of expenses.
On receipt of LOA the supplier is required to deposit Security Deposit either in the form of
Bank Guarantee, Fixed Deposit or Demand Draft.
The accounting procedure to record the transactions of procurement of M&P items are as
follows:
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1. Recording of Earnest Money Deposit: Earnest Money Deposit (EMD) is required to be
deposited as prescribed in the tender advertisement by the contractor/supplier.
Following accounting entry is passed by the accounts department to record the amount
of EMD received:
2. Recording of refund of EMD:
(i) When the tender is awarded, EMD of the unsuccessful bidder(s) as well as the successful
bidder is refunded and the following accounting entry is passed:
(ii) In case of Works Contracts: As per standard GCC July -2014, the following procedure is
followed: “The Earnest Money deposited by the Contractor with his tender will be
retained by the Railways as part of security for the due and faithful fulfilment of the
contract by the contractor. The balance amount, to make up the Security Deposit, may
be deposited by the Contractor in cash or may be recovered by percentage deduction
from the Contractor’s “on account” bills. Provided also that in case of defaulting
contractor, the Railway may retain any amount due for payment to the Contractor on the
pending “on account bills” so that the amounts so retained may not exceed 10% of the
total value of the contract.
3. Recording of Security Deposit in case of Supply Contracts: Security Deposit at 10% of
the cost of the machinery is also taken from the contractor/supplier to whom the tender
is awarded. If security deposit is in the form of Bank Guarantee or Fixed deposit then it
is kept with the custodian i.e. Bank Guarantee section of the accounts department. Bank
Guarantee section maintains all details of Bank Guarantees viz. year, extension, release,
encashment, etc.
Suspense head Remittance into Bank DR XXX
To Suspense head for EMD CR XXX
Deposit with RBI DR XXX
To Suspense head Remittance into Bank -DR XXX
Suspense head for EMD DR XXX
To suspense head Cheques and Bills CR XXX
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However, if security deposit is received in the form of Demand Draft then the same
accounting entry is passed as in the case of EMD. Sometimes, when SD is not deposited
by the supplier then it is deducted from the running bills of the supplier.
4. Recording of payment made to contractor/suppliers: When the contractor/supplier
deposits the security deposit, then an inspection of M&P items is carried jointly by
RITES and supplier at the suppliers’ site. After the joint inspection, supplier is required
to deliver the machinery at consignee’s site within the time limit prescribed in Bid
Document Part-I.
Whenever the machinery is delivered at the consignee’s site then consignee sends a
certificate of good condition i.e. joint inspection certificate of consignee and supplier, of
machinery to COFMOW. On receipt of the certificate of good condition, COFMOW
processes 80% payment of cost of machinery to the supplier and issues a transfer
certificate to the unit concerned. At this juncture, the following accounting entry is
passed:
Subsequently, the balance 20% payment of cost of machinery is processed within the
time limit prescribed in the Bid Document Part 1 for supervision and certification of
machinery to receive a proven test certificate (PTC) from the concerned unit and at the
same time COFMOW releases the security deposit to the contractor/supplier.
Whenever the supplier delays or deviates from the condition/time limit prescribed in the
Bid Document Part 1 then the supplier is responsible to pay a penalty minimum @ 2%
per month or part of the month and subject to maximum 10% of the cost of machinery.
This penalty is known as liquidated damages and deducted from the bill of the supplier.
5. Recording of Inspection Charges: COFMOW pays inspection charges @ 0.90% of the
cost of Machinery to Rail India Technical and Economics Services (RITES). In case the
supplier fails to deliver the machinery within the prescribed time limit then revalidation
inspection of machinery is done and the inspection charges to RITES is adjusted from the
supplier’s bill. The following accounting entry is passed for paying inspection charges:
However in case of global tender, inspection is done by Railway Advisor (RA), Berlin
and no inspection charges are paid to RA.
Railway Concerned DR XXX
To Cheques & Bills CR XXX
Railway Concerned DR XXX
To Cheques & Bills CR XXX
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6. Recording of Warranty Bank Guarantee (WBG): When the total payment of the
machinery is paid to the supplier then supplier is required to give the WBG equal to the
10% of the cost of machinery in the paper form for 24 months and it is also kept by the
custodian. The period of WBG may be extended if there is any breakdown in machinery.
This guarantee is released to supplier after the completion of the warranty period.
In some cases, if the performance of the supplier is not upto the mark then the Bank
Guarantee provided by the supplier is revoked and the amount is transferred to the
consignee concerned.
7. Recording of Direction and General (D&G) charges: As already discussed, COFMOW
charges a specific percentage of the cost of the machinery on actual basis and debit
transfer certificate for the same is given to the unit concerned.
Reserve Bank Suspense DR XXX
To Cheques and Bills CR XXX
Railway Concerned DR XXX
To Reserve Bank Suspense -DR XXX
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7 Electrification in Indian Railways
7.1 History9
Electric traction was introduced on Indian Railways in year 1925 With a view to reduce
dependence on petroleum based energy in Railway transport, IR have been progressively
switching over to electric traction. This also enables haulage of heavier loads at higher
speeds, thus increasing throughput.
7.2 Central Organization for Railway Electrification (CORE)
Central Organization for Railway Electrification (CORE) was set up in 1979 under the
Ministry of Railways, at Allahabad. The responsibility entrusted to CORE was to carryout
railway electrification over the entire network of Indian Railways. There are project offices at
various other sites where electrification projects are under execution. However, project
offices are closed after project completion.
ICAI ARF Nodal Team visited the following offices to get a preliminary understanding of
electrification:
a. Traction Sub Station, Sahibabad;
b. Electric Loco Shed, Ghaziabad;
c. CORE, Allahabad; and
d. CORE Project office, Lucknow.
ICAI ARF Team also visited the OHE department of Delhi Division to discuss various
aspects of electrification in detail. As far as accounting aspects are concerned, ICAI ARF
Team also looked into accounting system currently being followed for electrification projects.
Presently, there are following project units of CORE:
1) Ambala
2) Lucknow
3) Jaipur
4) Secunderabad
5) Chennai
6) Bhubaneshwar
7) Ahmedabad
8) New Jalpaigudi
9) Jabalpur
10) Kolkata
11) Danapur
9 Source: elcos.railnet.gov.in
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Each of these Railway Electrification (RE) Project offices is headed by a Chief Project Director
(CPD). These units are in the process of electrifying important Railway routes for harnessing
maximum benefits from their traffic potential. As of now about 65.4% of freight and 51.2% of
passenger traffic is hauled by electric traction on Indian Railways.
During the first three years of 12th Five Year Plan (2012-17), 5,772 Route Kilometer (RKM) of
Railway Track has been electrified against a total target of 6500 RKM. As on 31.03.2016, total
electrified RKM stood at 27,999. During the financial year 2015-16, 1,190 RKM was electrified
by CORE.
Presently, 84 works are being handled by the Project Offices of CORE. The budget for
electrification is approved by Railway Board. The assets on commissioning are transferred to
respective Railway(s) through TWFA. The budget is bifurcated to various works in progress
by CORE. The payments of material are made by the Head Quarters office. CORE does not
have its own depots at the project sites. There is no accounting of material at site. The
reconciliation of materials with the contractor is carried out at the closure of the project.
7.3 Accounting at CORE Head Office
The CORE head office is a separate accounting unit which prepares a separate account
current. All expenditure done by CORE is classified as capital expenditure, i.e., demand 16
and shown under ‘Plan head 3500 – Electrification’. Following source of funds are used to
create the electrification assets:
a. Capital (Loan Capital);
b. Development Fund (DF); and
c. Depreciation Reserve Fund (DRF).
Apart from Railway resources mentioned above, these projects are also being financed from
‘Extra Budgetary Resource (EBR)’ categorized into following two parts:
i. EBR (IF); and
ii. EBR (PPP).
Procurement relating to non-stock items for electrification like Copper, (catenary wire,
contact wire), transformers, etc. is done by CORE, Head Office. However, supply of material
is directly made by supplier at the Project office. Payment is also processed from the Project
office. However, in some cases payment is done by CORE and debit is raised on project
offices concerned.
Accounting Entries
Following accounting entries are passed in CORE, Head Office;
i. Receipt of Tender Fees: Primarily, receipt at CORE includes only tender fees and EMDs.
Tender is invited for procurement of material, service contracts, etc. Any tender fee
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received is treated on Capital Account and shown in Block Account. Following
accounting entry is passed to record the transaction in books:
Note: As per instruction prescribed in F-2 for Demand 16 - Miscellaneous receipts, such as
the sale proceeds of tenders on the construction organisations, whether attached to open
lines or not, forfeited earnest money, security deposits, and penalties recovered from
contractors should be credited to this head.
ii. Receipt of EMD: EMDs are received from contractors and suppliers at the time of
inviting tenders. Following accounting entry is passed to record the transaction in books
of account:
iii. Refund of EMD: EMD of unsuccessful bidders is refunded and EMD of successful
bidders is converted into security deposit. Following accounting entry is passed to
record the transaction:
It may be mentioned that no accounting entry is passed upon conversion of EMD into
Security Deposit.
iv. Procurement of Stores: Purchase of major items is done by CORE itself. Following
accounting entry is passed to record the transaction:
It may be noted that accounting head relevant to stores, i.e., 7100 is not operated by
CORE. Any material purchased is directly debited to respective project office. A capital
suspense should be maintained to record material booked to project till its actual
consumption and any material upon receipt is directly charged to respective plan
head by Project Office.
Remittance into Bank DR XXX
To Misc. Receipt on Capital Account CR XXX
Remittance into Bank DR XXX
To Accounting head for EMD (Deposit Misc) CR XXX
To Accounting head for EMD (Deposit Misc) DR XXX
To Cheques and Bills CR XXX
Project Office Concerned DR XXX
To Cheques and Bills CR XXX
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v. Upon encashment of Remittance into Bank (RIB): Every month, cheque clearance
report is received from RBI and following accounting entry is passed:
7.4 CORE Project Office
ICAI ARF Nodal Team undertook a field visit to one of the project offices (Lucknow) to
understand the accounting practices currently being followed. The main features of a CORE
Project Office are as under:
Project office is basically an administration office.
It is opened where any electrification work is being executed.
Project office is considered as an accounting unit and separate account current is
prepared at each project office. Block account is also prepared at Project office.
Salary of administration department is not charged to all projects. It is allocated on the
basis of guidelines as received from Railway Board from time to time.
There are various electrification projects under a project office and project wise work
register is maintained.
Each electrification project is denoted by 3 digit numeric group code for identification
purpose. For example, UTR-MGS (Utretia to Mughal Sarai – Up line)) is denoted by
Group code 136 and Mugal Sarai to Ulretia (Down Line) will be denoted by group code
137.
Following accounting entries are passed in CORE, Project Office;
i. Receipt of Tender Fees: Primarily, receipt at Project Office includes only tender fees and
EMDs. Tender is invited for work contracts for execution of electrification work. Any
tender fee received is accounted as receipt on Capital Account. Following accounting
entry is passed to record the transaction in books:
ii. Receipt of EMD: EMDs are received from contractors and suppliers at the time of
inviting tenders. Following accounting entry is passed to record the transaction in books
of account:
Remittance into Bank -DR XXX
To Deposit with Reserve Bank DR XXX
Remittance into Bank DR XXX
To Misc. Receipt on Capital Account CR XXX
Remittance into Bank DR XXX
To Accounting head for EMD (Deposit Misc) CR XXX
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iii. Refund of EMD: EMD of unsuccessful bidders is refunded and EMD of successful
bidders is converted into security deposit. Following accounting entry is passed to
record the transaction:
It may be mentioned that no accounting entry is passed upon conversion of EMD into
Security Deposit.
iv. Procurement of Stores: Purchase of major items is done by CORE itself. CORE raises
debit to the concerned project office. Following accounting entry is passed in the books
of project office to record the transaction:
It may be noted that accounting head relevant to stores, i.e., 7100 is not operated at
Project office. All material is directly charged to respective plan head. A capital
suspense should be maintained to record material booked to project till its actual
consumption.
v. Upon clearance of Remittance into Bank (RIB): Every month RIB balance is cleared in
the books of project office by passing following accounting entry:
vi. Upon clearance of Cheques and Bills Balance: Every month Cheques and Bills balance
is cleared in the books of project office by passing following accounting entry:
7.5 Compilation of Fixed Assets Register (FAR) – Electrification
The Fixed Assets of an electrified section/route are Overhead Equipment (OHE) in Railway
parlance. These fixed assets can be classified into following broad heads:
a) Mast/Portal
b) Catenary & Contact Wire
c) Transformers
d) Supervisory Control and Data Acquisition system(SCADA)
To Accounting head for EMD (Deposit Misc) DR XXX
To Cheques and Bills CR XXX
CORE Allahabad -DR XXX
To Accounting head for Electrification DR XXX
Remittance into Bank -DR XXX
To CORE Allahabad DR XXX
Cheques and Bills -CR XXX
To CORE Allahabad CR XXX
Indian Railways
149 | ICAI Accounting Research Foundation
e) Others
Further, the major elements
following parts:
During the pilot study on
(NWR), ICAI ARF prepared
Railway the formats of assets
this exercise was carried
Allahabad. Based on the interaction
into 4 parts for the purpose
depreciation thereon.
Based upon categorization
formats to capture the data
the same. Following formats
40%
20%
Conductors/wire
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ICAI Accounting Research Foundation
elements of cost of electrification can be categorized
on introduction of accrual accounting at North
prepared the Fixed Asset Register. However, NWR
assets pertaining to an electrified Railway were
out by the ICAI ARF Nodal Team during
interaction with CORE officials, electrification
purpose of capturing information for compiling
categorization as described above, ICAI ARF Nodal Team
data of electrification assets and compilation of fixed
formats have been developed:
40%
Electrification Cost
Copper Wire and Transformers
Execution Cost
Other Cost
Electrification
Tranformers Mast and Portals
Comprehensive Scope Evaluation Report
categorized into
North Western Railway
being a non-electrified
not prepared. As such
during its visit to CORE,
fication assets are classified
compiling FAR and computing
eam developed the FAR
fixed assets register for
Copper Wire and Transformers
Execution Cost
Other Equipment's
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a. FA-18A (Conductors/Wires)
b. FA-18B ( Transformers)
c. FA-18C (Mast and Portals)
d. FA-18D (Other Equipment’s)
It may be noted that these formats are under discussion with IR and may undergo a change.
a. Details of Conductors/Wires (FA-18A) -Conductors/wire constitute a major cost
component in electrification. Details of all wires will be collected in this format. It
includes contact wire, catenary wire or any other wire used in the process of
electrification.
b. Details of Transformers (FA-18B) -Cost of transformer is also a major cost in
electrification. Transformer may be categorized into several types based upon their
capacity and loads. For instance, 5 MW, 10 MW, etc.
c. Structure of Mast and Portals (FA-18C) - Details of all structures like mast and portals
will be covered here.
d. Other Equipment’s (FA-18D) - Details of all other electrification assets like Circuit
breaker, control panel equipment, etc., will be captured in this format.
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Indian Railways
Details of Conductors (Wire)
Form:- FA-18A
S.N
o.
Sto
ck H
old
er
Des
crip
tio
n o
f C
on
du
cto
rs
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Chainage (in
KMs)
Len
gth
of
Cab
le
Dat
e o
f a
cqu
isit
ion
/
inst
alla
tio
n
Co
st (
Rs.
)
Details of
Improvement
To
tal
cost
(R
s.)
Fu
nd
All
oca
tio
n C
od
e
Use
ful
life
of
asse
ts a
s p
er
cod
al p
rov
isio
ns
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
15
Net
bo
ok
val
ue
as o
n
31.0
3.20
15 (
Rs.
)
Rem
ark
s
Fro
m
To
Dat
e
Co
st (
Rs.
)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
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Indian Railways
Details of Transformer
Form:- FA-18B
S.N
o.
Sto
ck H
old
er
Des
crip
tio
n o
f T
ran
sfo
rmer
Cap
acit
y o
f T
ran
sfo
rmer
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Dat
e o
f a
cqu
isit
ion
/in
stal
lati
on
No
. of
un
its
Co
st p
er U
nit
Co
st (
Rs.
)
Details of
Improvement
To
tal
cost
(R
s.)
Fu
nd
All
oca
tio
n C
od
e
Use
ful
life
of
asse
ts a
s p
er c
od
al p
rov
isio
ns
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
15
Net
bo
ok
val
ue
as
on
31.
03.2
015
(R
s.)
Rem
ark
s
Dat
e
Co
st (
Rs.
)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
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Indian Railways
Details of Mast/Portal Structure
Form:- FA-18C
S.N
o.
Sto
ck H
old
er
De
scri
pti
on
of
Mas
t/P
ort
al S
tru
ctu
re
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Da
te o
f C
on
stru
ctio
n/i
nst
alla
tio
n
Co
st (
Rs.
)
Details of
Improvement
To
tal
cost
(R
s.)
Fu
nd
All
oca
tio
n C
od
e
Use
ful
life
of
asse
ts a
s p
er c
od
al
pro
vis
ion
s
No
of
yea
r a
sset
s is
in
use
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
15
Net
bo
ok
val
ue
as o
n 3
1.03
.201
5 (R
s.)
Rem
ark
s
Dat
e
Co
st (
Rs.
)
1 2 3 5 6 7 10 11 12 13 14 15 16 17 18 19 20
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Indian Railways
Details of Other Equipment’s (OHE)
Form:- FA-18D
S.N
o.
Sto
ck H
old
er
Des
crip
tio
n o
f O
ther
Eq
uip
men
ts
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Dat
e o
f A
cqu
isit
ion
/in
stal
lati
on
No
. of
un
its
Co
st p
er U
nit
Co
st (
Rs.
)
Details of
Improvement
To
tal
cost
(R
s.)
Fu
nd
All
oca
tio
n C
od
e
Use
ful
life
of
asse
ts a
s p
er c
od
al
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
15
Ne
t b
oo
k v
alu
e as
on
31.
03.2
015
(Rs.
)
Rem
ark
s
Dat
e
Co
st (
Rs.
)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
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7.6 Observations
a. TWFA of Assets: Major electrification work is done by CORE. Upon completion of
the project, the assets should be transferred to respective Zonal Railways through
TWFA. However, it is observed that TWFA of many completed projects is not done
by CORE to respective Railways and these assets are still lying in the Block
account of CORE.
It is recommended that transfer of assets should be done by CORE upon
completion of assets. If assets are not shown in the FAR of Zonal Railway
concerned, its financial statement won’t reflect true position of assets held by
them.
b. Work Done by RVNL: Some of the works relating to electrification is done by
RVNL. Railway Board makes payment to RVNL directly for this work and sends
debit to CORE and CORE books this amount under respective plan head at the time
of receiving debit. It is observed that there is no linkage between the debit received
and actual work done by RVNL.
However, upon completion of assets it should be transferred to plan head
concerned. Further, completed work should be transferred to Zonal Railways
concerned.
c. Assets Created from EBR: Presently, some of the electrification projects are funded
through EBR (Extra Budgetary Resource). It is observed that all amount as received
through EBR is kept in Deposit and upon utilization of fund, same account head is
debited so the amount spent on electrification work from EBR is not reflected in
Block Account.
It is recommended to show assets created from EBR, on the asset side of the
Balance Sheet of teh respective Zonal Railway and accordingly, corresponding
liability is also required to be created on the liability side.
d. No Stores Depots: It is observed that material procured is directly delivered to the
project site. There is no store depot either in CORE or CORE project office. There is
no linkage between supply of material and timely utilisation of material. For
instance, procurement of material is done by CORE but execution contracts are
finalized by project office. In some cases material is procured much before
finalization of works contract for execution of work.
There should be co-ordination between procurement of material and execution of
work. A capital suspense should be maintained to record material booked to
project till its actual consumption.
e. Debit for Electricity: OHE and Electricity of one Zonal Railway is used by another
Zonal Railway and no accounting transaction takes place in this regard, i.e., no
debit/credit is raised for such usage.
As operating ratio is calculated at Zonal Railway unless all the expenses/incomes
are accounted for, true profitability of a Zonal Railway cannot be determined.
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f. Fixed Assets Register: ICAI-ARF undertook a field visit to one of the Traction Sub
Stations (TSS). It is observed that no Fixed Assets Register is maintained for OHE.
However, quantitative details of equipment exist at TSS but the same is not updated
for last many years. Further, no record is maintained at TSS for the equipment
which was present in the Control Panel room. All assets in control panel are
maintained by remote wing section of the Division.
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8 Understanding of Research Designs & Standards
Organisation (RDSO)
8.1 History
Indian Railway Conference Association (IRCA) was set up in 1903 to enforce
standardization and co-ordination amongst various railway systems, followed by the
Central Standards Office (CSO) in 1930, for preparation of designs, standards and
specifications. However, till independence, most of the designs and manufacture of
railway equipment was entrusted to foreign consultants. With Independence and the
resultant phenomenal increase in country's industrial and economic activity the demand
for rail transportation increased. Therefore a new organization called Railway Testing
and Research Centre (RTRC) was setup in 1952 at Lucknow, for testing and conducting
applied research for development of railway rolling stock, permanent way etc.
Central Standards Office (CSO) and the Railway Testing and Research Centre (RTRC)
were integrated into a single unit named Research Designs and Standards Organisation
(RDSO) in 1957, under Ministry of Railways at Lucknow.
8.2 Organisation Structure
RDSO is headed by a Director General. The Director General is assisted by Additional
Director General, Sr. Executive Directors and Executive Directors, heading various
directorates.
The Organisation Structure of Finance and Accounts Directorate of RDSO is given
below:
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Executive Director
Finance
Dy. Director
Director Finance
Accounts Officer -
I
Accounts Officer -
II
SSO/INSP
SSO/EFFY
SSO/EGA
SSO/Pension
SSO/WR
SSO/ENG
SSO/BOOKS
SSO/Stores
SSO/EXPEND
SSO/PF
SSO/ADMN
SSO/CATS
Joint Director Finance
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8.3 Accounting at RDSO
ICAI ARF Nodal Team undertook a field visit to understand the accounting system
currently being followed at RDSO. RDSO is a separate accounting unit and prepares its
Account Current and Block Account which is then merged with the accounts of
Northern Railway. IPAS is implemented in RDSO.
i. Expenditure: Expenditure of RDSO consisting of both expenditures, i.e., revenue as
well as capital. All the revenue expenditure of RDSO booked to Demand 2 while
capital expenditure is booked to Demand 16.
Further, RDSO operates Demand payable in the Month of March for the recording
of Salary only. This should include all unpaid liabilities.
ii. Income: RDSO also provides consultancy services like testing charges, inspection
charges, drawing charges, etc., and earns revenue. All income of RDSO is booked in
Abstract Z.
iii. Fixed Assets: RDSO is involved in research and design activities. It is observed that
no fixed assets register is maintained by RDSO for its assets.
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160 | ICAI Accounting Research Foundation
9 Understanding
9.1 Introduction10
The suburban section of
city's business centre to Virar
per day by the Indian Railways,
Suburban section alone. We
'Train Management System'
information of train movement
9.2 Understanding of
Suburban rail plays a major
cities. Suburban rail is defined
suburbs, a conurbation or
basis. In other words, suburban
Centres to the urban conglomerates
9.3 Financial Overview
There is no budgetary segregation
Grant-wise and sub-head
Services is not being separately
expenditure incurred is
exhibit depicts the financial
07 to 2011-12:
10Source: www.wr.indianrailways.gov.in11Source: Report of Standing Committee on Railways
2006-07 2007-08 2008
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Understanding of Sub-Urban
Western Railway in Mumbai extends from
Virar to Dahanu Road .Today, of the 14 million
Railways, more than 6 million people travel per
Western Railway is a pioneer in implementing
System' (TMS) over its suburban section
movement to commuters.
of Sub Urban Train System11
major role in the public transport system of many
defined as a rail service between a central business
or other locations that draw large numbers of
suburban train services are the vital link which connects
conglomerates”.
Overview of Sub Urban Segment of Indian Railways
segregation for suburban services separately. Budget
head-wise only. Expenditure incurred for running
separately maintained in the books of account
joint cost shared with all types of train services.
financial performance of Western Railways sub urban
Source: www.wr.indianrailways.gov.in
eport of Standing Committee on Railways
-200
-100
0
100
200
300
400
500
600
700
800
2008-09 2009-10 2010-11 2011-12
Comprehensive Scope Evaluation Report
Urban Operations
from Churchgate, the
million people travelling
per day on Mumbai
implementing the state of art
giving real time
many of India’s major
business district and its
of people on a daily
connects Suburban
Railways
Budget is allocated
running Suburban
account since most of the
services. Following
urban from FY 2006-
Expenses (in Cr.)
Earning
Loss/Profit
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9.4 Important features of Mumbai Suburban System:
The system recognizes the following classes of travel: First class and Second class.
Quarterly and Monthly season tickets can be booked through Internet.
The trains on Mumbai Suburban run round the clock except from 1:00 a.m. to 4:00
a.m.
Users are allowed, in certain specific cases, to book tickets from different source
stations to different destination stations. A maximum of three different source
stations and three different destination stations can be opted at a time as notified by
Railways.
There are special coaches for women in both first and second classes.
Tickets booked on internet are delivered to the customer at his desired address
through courier. This delivery of Season Tickets through courier is limited to postal
addresses covered by the specified pin codes.
As per Ministry of Railways, 0.5% discount in base fare of season tickets shall be
granted in case of digital payment w.e.f. 01-Jan-2017.
Mumbai Suburban trains recover around 36% of its cost from passengers.
9.5 Accounting for Sub urban
ICAI ARF Team visited Western Railway Headquarters at Mumbai for understanding
the accounting system of Sub-Urban. It was explained that there is no separate
accountal of sub urban train operations. All the revenue from Sub Urban traffic is
accounted for at TAO of Western Railway. As far as expenditure is concerned, it is
accounted for in Mumbai Division of Western Railway. Following are two source of
funding for creating Sub Urban assets:
i. State Government (50%); and
ii. Ministry of Railways (50%).
Further, overhauling of rolling stock or coaches of sub urban is done by Mahalaxmi Car
Shed. Generally, an EMU carriage requires periodical overhauling (POH) after 18
months and as per guidelines issued by Railway Board POH should be completed
within 18 days from the date of receiving of carriage for POH. Procurement of material
is done in following two parts:
a. Stock Items: Stock items are directly purchased by Mahalaxmi Car Shed.
b. Non-stock: Request for non-stock item is sent to main Stores Depot.
Stock items issued by car shed are deemed to be consumed because no record of actual
consumption is kept.
It is suggested that proper record should be maintained for inward and outward stores
to assess the true financial performance.
Stock items are directly procured by workshop and for non-stock items indent is sent to
COS (Controller of Stores) or HQ. Items of Total value of Rs. 5000 can be directly
purchased by consignee itself.
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It may be noted that creation of sub urban infrastructure comes under the Metropolitan
Transport Project (MTP) and ownership of all the assets vest with Indian Railways
only. Further, a surcharge is levied on the sub urban fare which is remitted to Ministry
of Finance and State Government in equal ratio.
9.6 Observations
a. TWFA of Sub Urban Assets: Presently, sub urban infrastructure is developed by
Central Railway with the help of Mumbai Rail Vikas Corporation (MRVC). As per
the budget provision made, Ministry of Railways sanctions funds to Central
Railway for sub urban infrastructure development. This also includes amount
sanctioned for Western Railway as well. It is observed that all the sub urban assets
as created by Central Railway for the Western Railway are still being reflected in
the Block account of Central Railway. Therefore, Block accounts of both Western
Railway as well as Central Railway are not reflecting true and fair view of assets
held by them.
Assets relating to WR should be transferred to WR through TWFA at the earliest
for true and fair financial statements
b. Apportionment of Expenditure: In Mumbai, sub urban traffic is carried by Western
Railway and Central Railway. Apportionment of revenue between both railways is
done by RITES based on distance master. However, it is observed that WR is using
sub urban infrastructure of CR and vice versa but no apportionment of expenditure
is done for this usage. Further, it is also observed that non sub urban trains also use
sub urban infrastructure and vice-versa and this is also not accounted for.
9.7 Costing of Sub Urban Operations
As stated earlier that there is no separate accounting of sub urban operations. However,
each year, WR is computing cost of sub urban operation for managerial information. It
is also pertinent to note that there is no relation between this cost computation and
fixation of sub urban fair tariff. Presently, cost of Sub Urban operations is calculated by
following two costing methods:
a. Conventional Method: In the conventional method, computation of cost for sub
urban operations is done as per the guidelines and formulae prescribed in Annual
Statistical Statements – II. Following table shows the cost calculation as per
conventional method:
PARTICULARS (Figures in Rupees)
%
Variation
Previous Year Current Year
I. Working Expenses 2014-15 2015-16
ABSTRACTS
A General Superintendence And
Services 351,193,147 342,807,053 -2.39
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B Repairs And Maintenance Of
Permanent Way 519,981,736 554,771,822 6.69
D Repairs And Maintenance Of
Carriages And Wagons 1,519,188,864 1,679,911,161 10.58
E Repairs And Maintenance Of Plant &
Machinery 520,448,276 506,702,596 -2.64
F Operating Expenses-Rolling Stock &
Equipment 630,997,626 688,618,151 9.13
G Operating Expenses-Traffic 1,676,607,547 1,717,114,069 2.42
H Operating Expenses-Fuel 2,162,608,372 2,275,531,706 5.22
J Staff Welfare & Amenities 535,742,173 543,980,576 1.54
K Miscellaneous Working Expenses 585,654,643 492,116,024 -15.97
L Provident Fund, Pension & Other
Retirement Benefits 67,108,568 89,912,072 33.98
M-200 Appropriation To Pension Fund 2,082,684,520 2,505,948,246 20.32
Total Working Expenses 10,652,215,472 11,397,413,476 6.99
M-100 Depreciation 399,900,550 310,393,475 -22.38
Total Working Expenses with Depreciation 11,052,116,022 11,707,806,951 5.93
Interest 277,184,353 276,080,889 -0.40
Total Expenses 11,329,300,375 11,983,887,840 5.78
II. Earnings (As per Form IV) 7,924,857,833 7,943,843,405 0.24
III. Loss/Gain (Earnings-Total Expenses) -3,404,442,542 -4,040,044,435 -18.670
IV. Percentage of expenses to earnings excl.
Interest (Operating Ratio) 139.46 147.38
b. Sivakumaran Committee method: This method is similar to the conventional
method except the calculation of depreciation. This method emphasizes that as sub
urban sections have high density traffic of comparison to non-sub urban sections,
depreciation computation for sub urban section should also be different from non-sub
urban section. This methodology adopts different useful life for computation of
depreciation on sub urban infrastructure. Following chart depicts the summary of
expenditure as calculated for the costing purpose:
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9.8 Fixed Assets Register-Sub Urban
No fixed assets register is maintained for the assets of Sub Urban sytems. As far as sub
urban infrastructure assets are concerned, detail of track is available in Track
Management system (TMS). It is to be noted that track composition of Sub Urban
sections is different from the non-sub urban sections as there are more turnouts in sub
urban sections in comparison to normal track sections. So computation of depreciation
on sub urban track is a point of discussion.
General Superintendence
And Services3%
Repairs And Maintenance Of Permanent
Way5%
Repairs And Maintenance Of
Carriages And Wagons
14% Repairs And Maintenance Of
Plant & Machinery
4%
Operating Expenses-Rolling
Stock & Equipment6%
Operating Expenses-Traffic
14%Operating
Expenses-Fuel19%
Staff Welfare & Amenities
4%
Miscellaneous Working Expenses
4%
Provident Fund, Pension &
Other Retirement
Benefits1%
Appropriation To Pension Fund
21%
Depreciation 3%
Interest2%
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10 Kolkata Metro
10.1 History
Kolkata Metro is the First Metro Rail transport system in India. It started in 1984 its
commercial services to the commuters of Kolkata. Kolkata became the 17th Zone of IR
(IR).
10.2 Organizational structure:
Indian Railways
166 | ICAI Accounting Research Foundation
10.3 Accounting at Kolkata
ICAI ARF team undertook a
accounting system currently
of Kolkata Metro is as under
Kolkata metro prepares
The entire infrastructure
Railway and vice versa;
required.
Kolkata Metro receives fund
All the accounting is done
(AFRES). However, w.e.f.
accounting. Various Departments
Accountal of Earnings: Earning
(i) Passenger Earnings: Earning
Token and Smart card comes
(ii) Received through Point of Sale (
(iii) Station earnings: This earning
tickets (PCT) etc.
(iv) Sundry earnings: All other
earning and reflected in
scrap, building rent, etc.
Recording of Earnings in Books
Stations earnings are collected
which includes cash amount
12 Source: www.mtp.indianrailways.gov.in
Accounts
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Kolkata Metro
field study of Kolkata Metro for getting an understandi
being followed. The understanding of ICAI-
nder:
separate Block accounts for its assets;
infrastructure as developed by Kolkata Metro is not used
versa; therefore, no apportionment of earning
fund from Railway Board for creating infrastructure
done on Advance Finance Railway Earnings &
w.e.f. 1st April 2017, IPAS is in place and
Departments12 under Kolkata Metro areas under:
Earning of Kolkata Metro comprises the following
Earnings received at the counter: Earnings received
comes under this head.
Point of Sale (POS); and
earning includes amount collected from penalty,
other earnings except passenger earning is considered
in abstract ‘Z’. It includes advertisement fee,
etc.
Books
collected by Station Master. Thereafter, a Cash Receipt
amount as well as voucher amount, if any. The earnings
Source: www.mtp.indianrailways.gov.in
Electrical Engineering
Personnel Medical
Vigilance Rajbhasha
Comprehensive Scope Evaluation Report
understanding of the
-ARF team in respect
used by any other Zonal
and expenditure is
infrastructure.
& Expenditure system
and same is used for
under:
following:
received from sale of
penalty, Printed card
considered as sundry
fee, Kiosk Rent, sale of
Receipt (CR) is prepared
earnings are deposited
Signal & Telecom
Traffic
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into the designated Bank for which Treasury Remittance (TR) is prepared. Thereafter, both
CR & TR Notes are sent to Cash & Pay office. The Cash & Pay office acknowledges it and
sends to TAO. TAO reconciles it and after acceptance, advice is generated by TAO and sent
to Books section, thereafter Books section pass necessary JV, which is as under:
Rolling Stock:
In Kolkata Metro, holding of Rolling Stock is with Noapara Workshop. For procurement of
Rolling Stock, requisition is sent by Electrical department to Railway Board (RB) and RB
procures Rolling Stock on behalf of Kolkata Metro and Debit is sent to it by RB. Rakes for
Metro are manufactured in Integrated Coach Factory (ICF), Chennai. Technology of BHEL
and New Government Electrical Factory (NGEF) is also used by ICF for manufacturing of
rakes. Currently, new rakes are imported from China which are assembled at ICF, Chennai.
No Rolling Stock is taken from IRFC on lease by Kolkata Metro.
Periodic Overhauling (POH) of rakes is also done by Noapara Workshop; POH of a rake is
due after running of 300000 Kms. or completion of 5 years, whichever is earlier and this POH
should be completed within 1.5 to 2 months from receipt of rake in workshop.
Track
Kolkata Metro has 24 Kms. of specified track which is not used by other Zonal Railways. The
entire track is embedded track, i.e., Ballast and Sleepers are not used for laying track.
However, concrete base is used to fix the Track. However, in yards, normal track is laid by
using Rails, Ballast and Sleepers.
Engineering department is responsible for maintenance of Track. Presently, track record is
maintained manually. However, Track Management System (TMS) is in implementation
stage.
Remittance into Bank DR XXX
Traffic Suspense Remittance DR XXX
To Passenger earnings CR XXX
To Sundry earnings CR XXX
To Penalty CR XXX
To Diet Charges CR XXX
To Deposit Misc. suspense CR XXX
To Service Tax CR XXX
To Swachh Bharat Cess CR XXX
To Krishi Kalyan Cess CR XXX
To Release payment of
smart card from deposit
suspense
-
CR
XXX
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Stores Accounting
Stores: Stores can be classified in two categories as follows:
(i) Stock Items -These are low value items which are used frequently. Requisition of these
items comes annually from Depot and on the basis of this, procurement is done by Controller
of Stores (COS) by following the laid down procedure.
(ii) Non-Stock Items -These are items which are not used frequently and have more value
than Stock items. Requisition of these items is received from units as and when they are
required. Procurement is done by COS based on the requisition by following the laid down
procedure.
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11 Understanding of Chennai Metropolitan Transport Project
Chennai Metropolitan Transport Project (herein after called Chennai MTP) is primarily
involved in developing infrastructure for sub urban operations. Chennai Suburban Railway
is a commuter rail system in the city of Chennai (Madras), operated by Southern Railway.
11.1 Accounting system of Chennai MTP
ICAI ARF team undertook a field visit to Chennai MTP for understanding its accounting
system. During the field visit it is observed that Chennai MTP office has developed the
infrastructure which is used by Chennai Division part of southern Railway. All the repair
and maintenance is also done by Chennai Division itself. Further, revenue is also accounted
for in Southern Railway.
Chennai MTP is a separate accounting unit. Separate account current and Block account is
prepared by Chennai MTP. All the expenditure of Chennai MTP consists of capital
expenditure only i.e., Demand 16. As far as revenue is concerned, no revenue is booked in
Chennai MTP.
11.2 Observations
a. TWFA of Sub Urban Assets: Presently, sub urban infrastructure is developed by
Chennai MTP . As per the budget provision made, Ministry of Railways sanctions funds
to Chennai MTP. It is observed that all the assets/Infrastructure created by Chennai
MTP. All such infrastructure is used by Chennai Division. Repair and maintenance is
also done by Chennai Division. However, this entire infrastructure is being reflected in
Block Account of Chennai MTP. No asset is transferred to Chennai Division through
TWFA. Therefore, Block accounts of both Southern Railway as well as MTP Chennai
do not reflect the true and fair view of assets held by them.
All completed projects relating to SR should be transferred to SR through TWFA at the
earliest for a true and fair reflection in the financial statements.
b. Assets Created from EBR: Presently, some of portion of project cost as owned by
Chennai MTP is met from EBR (Extra Budgetary Resource). It is observed that all
amount received through EBR is kept in Deposit and upon utilization of fund same
account head is debited. Amount spent on any work from EBR is not reflected in Block
Account.
It is recommended to show assets created from EBR also in the Balance Sheet and Asset
Register creating a corresponding liability.
c. Fixed Assets Register: It is observed that no Fixed Assets Register is maintained by
Chennai MTP as the assets are held by Chennai Division. Although same are being
reflected in Block account of Chennai MTP because of non-drawl of completion report.
All completed projects relating to SR should be transferred to SR through TWFA at the
earliest for true and fair reflection in the financial statements.
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12 Understanding of Existing Software13
12.1 Introduction: Computerisation of Accounting Activity over Indian Railways
ICAI ARF Nodal Team discussed and studied the level of computerisation over Indian
Railways, more specific to application related to recording of financial Transactions,
generation of Financial Statements, Statistical Statements, and other MIS compilations at
Zonal and Indian Railway Level.
Initially, applications developed internally named AFRES (Advanced Finance Revenue
Expenditure System) to cover the whole gamut of Accounts processing of Revenue,
Expenditure and Establishment (Pay Roll etc.) and PRIME (Pay Roll & Related Independent
Modules) were implemented by all Zonal Railways in standalone approach. In the process,
every Railway unit made changes in the basic application software, defeating the objective
of uniform standard application across the Zones.
Therefore, it was decided to develop and implement a web based application, namely,
Integrated Pay Roll and accounting System (IPAS) through centralised AIMS portal. This
application is designed and developed by CRIS. The application is running on a centralized
platform and ensuring that entire Indian Railways follow similar processes without any
local changes. This has given IR, capability of faster, centralised changes and management
and automation of change processes. Its pan India implementation will enable IR to have
real time access to financial transaction data and help in more accurate financial and fiscal
discipline.
The software is presently being used by all the zones of Indian Railway, and its
implementation over production units is under process. This software is mainly for
handling Pay Roll Generation and keeping the record of payments, adjustment between
Railways/ Units of Railways.
IPAS is broadly divided in two groups i.e. personnel modules and financial modules.
Personnel modules includes like payroll processing, leave, loan, TA, Income tax, electricity,
quarter, etc. Financial Modules includes IC, books, PF, pension, budget, suspense etc. In
IPAS, Personnel modules and financial modules are tightly coupled so that data generated
by module can be accessed through other modules.
13 Based on understanding as gained during pilot study carried out at Ajmer Division and Ajmer Workshop
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12.2 Functional Module of IPAS
Human Resources in IPAS
Objective of Human Resource modules is to maintain Employee Information
job related. It covers:
Change Data viz. allowances and recoveries, Leave, Loans and Advances, Quarters,
Electricity
Career events viz. Increments, Promotions, Transfer and Pay change),
Salary Process,
Generation of other salary related reports and
Settlement
Finance modules in IPAS
Internal Check module –
Passing, CO7 generation, abstract preparation and release ofd payment through Bank /
cheque.
Books – Generation of Account current, Schedules, Revenue Allocation Re
and other related reports
Provident Fund (PF) – to keep the record of employees’ PF deductions/ contributions,
withdrawals, interest on balances and generation of credit/ debit check sheet, monthly
and annual reconciliation and generation of
Human Resource
Leave
Settlement
Employee Profile
Service Record
Travelling Allowance
Loans & Advances
Payroll
Seniority
Cadre
Quarters & Electricity
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Functional Module of IPAS
Objective of Human Resource modules is to maintain Employee Information
Data viz. allowances and recoveries, Leave, Loans and Advances, Quarters,
Career events viz. Increments, Promotions, Transfer and Pay change),
Generation of other salary related reports and
– All bill passing activity viz. Registration(CO6), Auditing, Bill
Passing, CO7 generation, abstract preparation and release ofd payment through Bank /
Generation of Account current, Schedules, Revenue Allocation Re
and other related reports
to keep the record of employees’ PF deductions/ contributions,
withdrawals, interest on balances and generation of credit/ debit check sheet, monthly
and annual reconciliation and generation of reports thereof.
Human Resource
Leave
Settlement
Employee Profile
Service Record
Travelling Allowance
Loans & Advances
Payroll
Seniority
Cadre
Quarters & Electricity
Finance
Cash & Pay
Internal Check
Books
Budget
Suspense
Pension
Provident Fund
NPS
E-Suspense
Traffic
Incentive
Store Accounts
Comprehensive Scope Evaluation Report
Objective of Human Resource modules is to maintain Employee Information - personal and
Data viz. allowances and recoveries, Leave, Loans and Advances, Quarters,
Career events viz. Increments, Promotions, Transfer and Pay change),
All bill passing activity viz. Registration(CO6), Auditing, Bill
Passing, CO7 generation, abstract preparation and release ofd payment through Bank /
Generation of Account current, Schedules, Revenue Allocation Register(RAR)
to keep the record of employees’ PF deductions/ contributions,
withdrawals, interest on balances and generation of credit/ debit check sheet, monthly
Finance
Cash & Pay
Internal Check
Books
Budget
Suspense
Pension
Provident Fund
NPS
Suspense
Traffic
Incentive
Store Accounts
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New Pension System (NPS) – to keep the record of employees/ government
contributions under NPS, transfer to NSDL, generation of MIS, co-ordination with
NSDL etc.
Pension – leading from Settlement module all PPOs are being generated / printed here.
The e-PPOs generated from IPAS are transmitted to CPPCs of various banks.
Store Accounts – Keeping the transactional record regarding Fuel Accounting, Purchase
suspense and Deposit Stores.
Incentive – To provide the incentive calculation and pushing the data to payroll
module.
12.3 Integrated Material Management System (i-MMIS)
Initially Materials Management Information System (MMIS) was developed at Central
Railway in 1998 for COS office, Stores, Accounts office and five major depots of the Central
Railway. MMIS is used for Stores Accounting, i.e., purchase, issuance of material, raising of
Purchase order (PO), generation of Electronic Requirement Mandate (ERM), Receipt Order
(RO), Issue Note, etc. There are various types of reports that can be generated in MMIS like
details of slow moving inventory, Quantities available as on date, pending PO, etc. The
system has undergone several customizations and is implemented at most of the Stores
Depots; Divisions & Stores finance branches all over Indian Railways.
Now, with the need of the hour, the present decentralized MMIS running on individual
server in Zonal Railways is being integrated at CRIS (Centre for Railway Information
Systems), New Delhi with the i-MMIS (Integrated Material Management System) web based
application on central servers. In the first phase, Local purchase module of iMMIS has been
rolled out for implementation in all depots and divisions of stores department of Zonal
Railways, both for Stock & Non-Stock items. This application is being used by all Indian
railways for finalising their tenders online. This application is catering depot transaction
(Issue/ Receipt) of all the Indian Railways. Once this application is fully implemented and
integrated with IPAS it will take care of all the payments and suspense head operated in
Stores Accounts.
12.4 Indian Railway E Procurements System (IREPS)-
IREPS is an application developed and hosted by CRIS. It takes care of all the procurements
/ Auctions electronically. This is a web based application provides one point solution from
vender Registration, e-tendering i.e. issue of tender, submission of tender, finalisation of
tender ( i.e. Tender Committee Minutes/ Acceptance of TC Minutes) , and purchase order
as it is being issued form IMMIS which is having interface with this application and
providing basic data.
This application also provides full solution for e-Auction from registration of vender to
finalisation of Auction.
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12.5 Advanced Railway Pension Access Network (ARPAN)
ARPAN is an URL based web portal which can be accessed from any machine anywhere.
This application was developed by Western Railway in association of a third party
developer, to computerise generation of PPOs and reconciliation of Pension debits received
from different payment authorities to Railway Pensioners. This application was being used
to issue e-PPOs by all railways.
After implementation of IPAS on all zones, Railway Board has decided that all new PPOs
will be generated through IPAS, as this is the basic database of employees on the date of
retirement. However, the PPO data shall be ported to ARPAN for reconciliation and
revisions. Accordingly the legacy data of pensioners including the data of fresh pensioners
settled through IPAS is being ported to ARPAN. The revision of pension cases from 6th CPC
to 7th CPC and reconciliation of Pension debits with the bank scroll will be handled through
this application.
12.6 E-Reconciliation Portal
E-Recon is a web based portal for reconciling transfer transactions across Indian Railways.
The portal offers users of units across Indian Railways to send and receive transfer
certificates, make journal vouchers and use the transactions of e-Recon to settle their
accounts. e-Recon works on the basis of selected entries of two allocations viz., Transfer
Divisional (008782) and Transfer Railways (008797) from Cash Book generated from IPAS.
The system also offers various reports in the form of TC and JV registers. TC and JV reports,
monthly listing of TCs, Reconciliation/ Final Reconciliation reports etc. These can be used to
match the transactions and reconcile accounts. The system also offers certain monitoring
tools so that the units and users can keep pace with what has come in what has gone out.
The monitoring reports are TC-JV waiting for action report, Account reconciliation
statement and TC register. These can be used to track TCs and JVs and see where they are
lying.
e-Recon does not cater to Transfer Capital and Transfer Revenue. It is understood that there
are no financial trigger for these transactions and hence cannot be part of e-Recon.
12.7 VPN – ONLINE Budgeting System
The budgeting system over Indian Railways was computerised long back, wherein all the
budgeting figures were provided by the different accounting units of Indian Railways
manually. These figures were again keyed in manually which was error prone and time
consuming.
Later, a VPN based application was introduced by Railway Board for, letting each
Accounting unit to feed all budget related data through VPN connectivity. Being a
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centralised database application, Railway Board has real time access to the information
which is helpful in processing of the same.
12.8 New Applications
Indian Railway Accounts Department is also in the process of undertaking some more
accounting activities through computerisation. Applications like Workshop Accounting
Management System (WAMS) and Traffic Accounts Management System (TAMS) are being
developed through CRIS in consultation with nominated railways. These applications will
keep the transactional record for Workshop and Traffic Accounts of Railway on a web
based, centralised database system and will be capable for providing MIS on real time basis.
Further some locally developed applications are also being used on the railways, For
instance the following applications are in use at NWR:
1. FOXPRO (Workshop General Register)
It is a customized software used in Ajmer workshop for the preparation of WGR (Workshop
General Register). In this software, details of direct labour hours and cost of direct material
consumed is entered work order wise. This is used to calculate the cost of direct labour,
amount of all overheads allocated against each work order. Labour rates and the basis for
allocation of overheads are pre entered in software and changed periodically as per
requirement.
2. Data Entry Module
Data Entry Module Software is used in TAO. The details of Railway Receipts (RR) of goods
are entered into this software. This software contains the basic details like local/foreign card
code, load code, risk rate, commodity code, etc. If the amount of freight is exceeded by 9
digits then two entries are required to enter for the same RR. This data is submitted to IT
centre Jaipur for generating Machine prepared abstract, pair statement, paid statement and
incorrect register. With the help of these documents, the information sent by the stations is
cross checked/verified.
3. Clipper Based Program
Clipper Based Program (MS-DOS) is a program in which the details of cash remittance notes
and vouchers are entered. This program contains the basic details regarding cash remittance
notes, i.e., station code, check sheet date, collection date, month, amount relating to
goods/coaching/misc. Editing is possible if any change is required. It has re indexing feature
to save the data in case of power failure or any other reason. This program contains basic
details about the voucher, i.e., station code, check sheet date (means closing date of previous
month), earning date (voucher date). With the help of this program TAO generates the cash
register, seven report (Date wise cash collection report from the stations) and summary
report, cash in transit report and voucher register. These statements (except voucher
register) are useful to cross check the cash balance in Books section where revenue account
current is prepared. Voucher register is useful to cross check the details of vouchers in
military warrant section and bills section.
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4. Remittance into Bank (RIB)
RIB is used in TAO for reconciliation of bank remittances. In these software details of bank
transaction like Treasury Notes (TR) and receipt of E-payment is recorded. Traffic Accounts
office, Division and Workshop enter the bank transaction details. It contains the basic details
like Unit code, scroll date (date on which cash office received TR) station code, etc. Data of
this software is handed over to Zonal Head Quarter to cross check with the bank receipts.
With the help of this software each unit raises Transfer certificate (Debit) to Head Quarter
for the purpose of confirmation of bank receipts.
5. FOXPRO Program
This program is an MS-DOS based program used in TAO to generate the Traffic Book Part-A
by entering the coded balance sheet. It contains the basic details like station code, Debit/
Credit code, Traffic Book Code, Balance Sheet item code, etc. Following reports are
generated:
i. Traffic Book Summary;
ii. Traffic Book Register;
iii. Station Outstanding;
iv. Balance Sheet Report;
v. Division Wise Summary; and
vi. Service Tax summary, etc.
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13 Chapter - Way Forward for implementation of Accrual
Accounting
This Chapter covers the steps to be taken by an organization while shifting to accrual
accounting. Following diagram depicts the steps to be taken by Indian Railways for
preparation of financial statements on accrual based system of accounting:
13.1 Comprehensive Study of Existing Accounting Systems
This is the first step wherein a diagnostic review is required to be undertaken, primarily for
better understanding of the existing system and to plan the strategies and measures for
implementation of Accounting Reforms. For this, study of Manuals and other relevant
material issued by the IR as well as the Accounting Standards issued by the Institute of
Chartered Accountants of India (ICAI) is required. Further, due consideration need to be
given to the Indian Government Financial Reporting Standards (IGFRS) issued by the
GASAB. It may be noted that ICAI ARF Team carried out a detailed study of the current
flow of processes as well as accounting transactions under existing accounting system of
Indian Railways as well as requirements as per the Accounting Standards issued by ICAI
and GASAB and suggests the roadmap/steps for implementation of the new accounting
system as mentioned hereunder:
13.2 Compilation of Fixed Assets Register (FAR)
One of the most important steps in the process of implementation of accrual based
accounting system is identification and accounting of Fixed Assets. For this purpose, Fixed
Asset Register needs to be prepared which will give details of all fixed assets owned by the
Indian Railways. The FAR forms comprehensive single record of all information necessary
about each physical asset and these records will form part of general ledger accounting
1. Updation ofComprehensive scopeevaluation report
2. Compilation of FixedAssets Register andgathering the accrual data
3. Application ofvaluation norms forAssets and Liabilities asfinalized in pilot study
4. Finalization ofsignificant accountingpolicies for new areas
5. Preparation of OpeningBalance Sheet as on cutoff date
6. Compilation ofFinancial Statements forthe financial year
7. Updation of AccrualAccountingImplementation Manual
8. Capturing accountingtransaction on day to daybasis
9. CapacityBuilding, Hand holding& Trainings
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system and provides the information to manage the assets, to know the investment in assets
and help in planning for further investments in future. It also contains date of purchase of
asset which will help in determining the age of asset. FAR also gives information about
location of the asset in the organization.
Fixed Assets, being a significant portion of the total assets of any organization, the
accounting thereof requires proper classification, segregation, recording and presentation
for the purpose of reflecting the true financial status and determining the level of efficiency
of the organization in relation to the cost incurred on the assets.
It is essential to record all the assets in the books of accounts and make provision for
depreciation not only in a commercial environment, but also for entities that do not operate
for profit. Governments, particularly those operating in a parliamentary democracy, are
custodians of the money raised from the citizens and other sources. They have a duty to
ensure that assets created out of such taxpayers’ money are looked after properly, so that
they are not frittered away or used inefficiently. This duty of the Government is irrespective
of whether the assets are put to use to generate profit or otherwise. Government
Department/units in India are not following the accrual based accounting system for
preparing its financial statements. Nevertheless, after realizing the importance of preparing
financial statements under accrual-based principles, gradually these government units are
migrating to accrual-based accounting. The first step for any unit (including a Government
unit) to implement accrual system of accounting is to prepare the Opening Balance Sheet.
The preparation of the opening balance sheet requires determination of balances of fixed
assets and current assets, long-term and short-term dues and liabilities payable to outsiders.
An opening balance sheet is required to be prepared to draw the statement of affairs of the
entity as on the date of the balance sheet and carrying the balances of all assets and liabilities
to the next accounting year as the opening balances. Thus, implementation of accrual
accounting starts with preparation of the opening balance sheet.
13.3 Categorization of Fixed Assets
After detailed review of IR’s assets, ICAI ARF Nodal Team categorized the fixed assets of
Indian Railways in the following manner:
i. Land (FA-1);
ii. Buildings (FA-2);
iii. Bridge/Tunnel/Flyover/Subways (FA-3);
iv. Roads/Street (FA-4);
v. Railways Tracks;
Rails (FA-5A)
Sleepers (FA-5B)
Ballasts (FA-5C)
Other Fittings (FA-5D)
vi. Furniture & Fixtures (FA-6);
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vii. Office Equipments (FA-7);
viii. Vehicles (FA-8);
ix. Plant, Machinery &Equipments (FA-9);
x. Computer & Peripherals (FA-10);
xi. Medical Equipments (FA-11);
xii. Loco/Coach/Wagon (FA-12);
xiii. Capital work-in-progress (FA-13);
xiv. Plant, Machinery & Equipment (Signal) (FA-14);
xv. Plant, Machinery & Equipment (Telecom) (FA-15);
xvi. Electric Equipment & Fittings (FA-16);
xvii. Intangible Assets (FA-17); and
xviii. Electrified Railway Track;
Conductors (Wire) (FA-18A)
Transformers(FA-18B)
Structure of Mast/Portal (FA-18C)
Other Equipments (FA-18D)
Based upon categorization, ICAI-ARF designed the formats in consultation with the
Accounting Reforms Cell for collecting relevant information to compile Fixed Assets
Register (FAR). The formats so designed were submitted to IR officials for their
comments/suggestions. These formats are primarily designed on the basis of FAR formats
of NMAM, which is developed by C&AG and some other Government departments/
organizations (Annexure I).
ICAI ARF has already compiled Fixed Assets Register of North Western Railway (NWR)
and Rail Coach Factory (RCF) as on 31.03.2015. Now, under the Roll Out Project, FAR of
whole IR will be prepared and FAR of NWR and RCF will also be updated accordingly.
13.4 Preparation of Opening Balance Sheet (OBS)
For the purpose of preparing opening balance sheet, data capturing formats for compiling
FAR, Current Assets, Current Liabilities and OBS (Annexure III) have been designed and
circulated to Zonal Railways/Production units to be filled by the
Divisions/Workshops/Production Units, etc., and certified/ authorized by the officials
concerned. Some additional information is also required to be shown in Notes to accounts
(Annexure IV) in financial statements.
‘Valuation Norms’ for all fixed assets have also been enunciated for Opening Balance Sheet.
These norms shall act as guiding principles while preparing the OBS and be disclosed in the
‘Notes to Accounts’. Due consideration has been given to the Indian Government Financial
Reporting Standards (IGFRS) issued by the GASAB and the relevant Accounting Standards
issued by the Institute of Chartered Accountants of India (ICAI). These Accounting
Standards prescribe the accounting treatment for presentation and valuation of various
assets/liabilities so that users of financial statements can obtain information regarding an
entity’s assets and liabilities. Depreciation policy has also been finalized for providing
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depreciation on fixed assets as existing on the date of OBS. The above mentioned steps shall
lead to ascertaining:
i. balances of all the Fixed assets own by the Division/Workshop;
ii. capital work in progress;
iii. current assets such as cash, bank balances, inventories and all the receivables;
iv. current liabilities including statutory dues payable employee related liabilities, etc.; and
v. necessary provisions and contingent assets and liabilities.
Following steps are to be followed for the purpose of preparation of OBS as at 31.3.15
Figure 1: Preparation of Opening Balance Sheet
ICAI-ARF has already compiled opening Balance Sheet of North Western Railway and Rail
Coach Factory as on cut-off date 31.03.2015. Now, Opening Balance Sheet of Indian
Railways as a whole is to be prepared as on 31.03.2015.
13.5 Valuation Norms of Assets and Liabilities
After identification and verification of the assets and liabilities, the process of valuation
starts. It may be noted that valuation norms for fixed assets and liabilities have already
been finalized during the pilot studies undertaken at North Western Railway and Rail
Coach Factory. These norms may be followed during the implementation of accrual
accounting across the Indian Railways. However, if any new area emerges during
implementation, valuation norms/methodology for the same shall be addressed separately.
Determination of Cut-off date for preparation of OBS, i.e., 31.03.2015
Circulation of 'Data Capturing Formats' in respect of Assets and Liabilities
Compilation of information from 'Data Capturing Formats'. Apply Valuation
Norms for Assets and Liabilities' as finalized in Pilot Study'
Preparation of OBS by plotting information captured above.
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Assets of IR, can be broadly classified as under for the purpose of valuation:
i. Fixed Assets and
ii. Current Assets.
i. Fixed Assets: Fixed Assets may be defined as the tangible as well as intangible assets,
acquired by an organization for use in the production or supply of goods or services or
given on licence fee to others or used for administrative purposes. They are held primarily
for use, not for sale and are expected to be used during more than one accounting period.
Since fixed assets are often a major portion of the total assets of the organization they are,
therefore, significant in the presentation of its financial position.
The main issues involved in accountal of fixed assets are as follows:
a. Identification of assets;
b. Physical verification of assets; and
c. Valuation of fixed asset.
ii. Current Assets: All assets that are reasonably expected to be converted into cash within
normal operating cycle or where operating cycle is not be ascertainable within one year in
the normal course of business are categorized as Current Assets. Current assets include cash,
accounts receivable, inventory, marketable securities, prepaid expenses and other liquid
assets that can be readily converted into cash. Current assets are important to businesses
because they are the assets that are used to fund day-to-day operations and to pay ongoing
expenses. Depending on the nature of the business, current assets can range from barrels of
crude oil, to baked goods, to foreign currency. In case of IR current assets include demands
recoverable, imprest, etc.
Liabilities: Liabilities are organization's legal debts or obligations that arise during the
course of business operations. Liabilities are settled over time through the transfer of
economic benefits including money, goods or services. Liabilities include loans, accounts
payable, mortgages, deferred revenues and accrued expenses. Liabilities are a vital aspect of
an organization's operations because they are used to finance operations and pay for large
expansions. They can also make transactions between businesses more efficient. Further,
liabilities can also be following two types:
a. Current Liabilities: Liabilities which are payable within normal business operating
cycle or where operating cycle is not available/ascertainable, within one year.
b. Non – current liabilities: Liabilities other than current liabilities are treated as non-
current liabilities.
13.6 Finalizing Significant Account Policies
Accounting policies are also important to any entity to maintain consistency in all the
aspects such as carrying out activities, MIS and other transactions. Generally, based upon
the accounting policies followed by the entity, the procedures and internal control systems,
etc., are developed and followed. For example, the decision relating to capital expenditure,
processing of payment of bills, cash management and budgeting, etc., are governed by the
accounting policies. Accounting policies are usually developed and approved by the top
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management of the entity and do not get changed over a period of time. They are developed
for long-term use and reflect a firm’s values and ethics.
Accounting policies on following issues have been enunciated during the pilot studies
carried at North Western Railway and Rail Coach Factory, Kapurthala:
i. Basis of preparation of Financial Statements;
ii. Use of Estimates;
iii. Fixed Assets Accounting;
iv. Capital Work in Progress;
v. Depreciation;
vi. Provisions, Contingent Liabilities and Contingent Assets;
vii. Valuation of Inventories;
viii. Revenue Recognition;
ix. Retirements;
x. Lease Accounting; and
xi. Investments
For detailed accounting policies, kindly refer to Accrual Accounting Implementation
Manual (AAIM) as prepared in pilot study at North Western Railway. Accounting policy on
a new area not covered in pilot study, if needed will be discussed and finalized on need
basis.
Accrual Accounting Implementation Manual
Detailed guidelines on procedure to be followed to capture details in Asset Register Formats
(including valuation norms), Current Assets/ Liabilities, Balance Sheet, Cash Flow
Statement, problems that could be faced in data collection and the course of action to be
followed are given in the Accrual Accounting Implementation Manual. This document also
contains relevant accounting rules, policies, principles, guidelines and other information for
Indian Railways. It also specifies the rules and procedures for the preparation of the
Financial Statements at the end of the financial year. The Accounting Manual broadly covers
the following:
i. General Accounting Procedure including guidance for drawing opening balance
sheet and financial statements for Zonal Railways;
ii. Significant Accounting Principles;
iii. Procedural details with recommendations of books/ registers to be maintained;
iv. Forms/ formats for books of accounts, registers and other subsidiary record (if any);
v. Formats for periodical/annual financial statements (Annexure II).
The existing Accrual Accounting Implementation Manual (AAIM) has been prepared based
on pilot study at North Western Railway and the same shall be updated during
implementation of accrual accounting across the Indian Railways.
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13.7 Capturing Accounting Transactions on day-to-day Basis
The financial statements of Indian Railways for 2015-16 and 2016-17 shall be compiled on
grafting basis, i.e., based on existing financial statement with some additional information in
respect of accrual elements. However, simultaneously mapping of F-2 will be carried out for
implementation of accrual accounting on transaction basis, in addition to government
accounting.
13.8 Compilation of Financial Statements
Financial statements are intended to meet the needs of users. Users of financial statements
include stake holders like taxpayers, members of Legislature, Government entities, the
media and the public, including citizens. The objective of financial statements is primarily to
provide ‘true and fair’ view of the financial position, financial performance and cash flows
of the Government entity which is useful to a wide range of users in making and evaluating
decisions about the allocation of resources and to demonstrate the accountability of the
Government entity for the resources entrusted to it, by:
i. Providing information about the sources, allocation, and utilization of financial
resources;
ii. Providing information about how the Government entity financed its activities and met
its cash requirements;
iii. Providing information that is useful in evaluating the Government entity’s ability to
finance its activities and to meet its liabilities and commitments;
iv. Providing information about the financial condition of the Government entity and
changes in it, including its assets and liabilities; and
v. Providing aggregate information useful in evaluating the Government entity’s
performance in terms of cost of providing services and efficiency in delivery of services
besides other accomplishments.
The formats of financial statements have been finalised (Annexure II) and financial
statement of North Western Railway and Rail Coach Factory have already been prepared in
the same format.
13.9 Capacity Building, Hand Holding & Training
ICAI ARF team will strengthen, support and guide the officials of Indian Railways about
accrual based system of accounting and preparation of financial statements on accrual basis.
It will include Balance Sheet, Profit and Loss account and Cash Flow Statement along with
necessary Schedules, notes to accounts and other necessary details as required.
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14 Annexures -Forms and Formats 14.1 Annexure 1: FAR Format
Indian Railways
Details of Lands
FA-1
S.
No
.
Sto
ck H
old
er C
od
e
Par
ticu
lar/
Des
crip
tio
n o
f
Lan
d P
lots
Plo
t R
efer
ence
No
.
Blo
ck S
ecti
on
(B
etw
een
tw
o
Sta
tio
ns)
Ch
ain
age
in
Km
s)
RH
S o
r L
HS
in
in
crea
sin
g K
Ms
Sp
ecif
y i
f L
ease
ho
ld/F
reeh
old
Location
Rev
enu
e v
illa
ge
as
per
rev
enu
e
reco
rds
Dimension
of Land
yea
r o
f ac
qu
isit
ion
(if
kn
ow
n),
men
tio
n e
arli
er t
han
(if
no
t k
no
wn
)
Lan
d P
lan
No
.
Sta
tus
in R
even
ue
Rec
ord
Co
st o
f ac
qu
isit
ion
of
Lan
d
(if
Av
aila
ble
)
Co
st o
f Im
pro
vem
ent
(If
Av
aila
ble
)
(An
y e
xpen
ses
incu
rred
on
lan
d
lik
e co
nst
ruct
ion
of
bo
un
dar
y w
all/
fen
cin
g
Cu
rren
t U
se o
f L
and
An
y p
art
Sep
arab
le f
or
oth
er
use
(A
rea)
Dis
tric
t L
evel
Co
mm
itte
e (D
LC
)
Rat
e A
rea
in u
nit
in
ref
eren
ce t
o
DL
C r
ate
Yea
r o
f D
LC
Rat
e
Pre
sen
t /a
ctu
al C
ost
of
Lan
d
Rem
ark
s
Sta
te
Dis
tric
t
To
wn
/vil
lag
e
Len
gth
Are
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2
0 21 22 23 24 25 26
Notes:
1. Details of all Land belonging to the Ajmer Division, irrespective of the fact, whether it is vacant or any structure has been constructed on that, should be
included here.
2. Specify if land is Industrial/Agriculture/Residential.
3. Where the date/year of acquisition is ascertainable but the cost as well as the original documents is not available, valuation can be done using the
'Guidance Value' prescribed under the Stamp Duty Act for the location, type of land and date. If the 'Guidance Value' is also not available for that
particular year/date, transaction value of a similar plot in the similar area around the estimated year of transaction can be adopted as the transaction rate
for valuation purposes.
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184 | ICAI Accounting Research Foundation
4. If any other thing is required to be mention regarding land, then same may be shown in 'Remark Column'.
Draft
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185 | ICAI Accounting Research Foundation
Indian Railways
Details of Buildings
FA-2
S.N
o.
Sto
ck H
old
er C
od
e
Des
crip
tio
n
Location R
even
ue
vil
lag
e as
per
rev
enu
e
reco
rds
Dimensio
n of
building
No
. of
flo
ors
Are
a o
f la
nd
on
wh
ich
Bu
ild
ing
is l
oca
ted
To
tal
bu
ild
Up
are
a
yea
r o
f ac
qu
isit
ion
/
con
stru
ctio
n(i
f k
no
wn
), E
arli
er
than
(if
no
t k
no
wn
)
cost
of
acq
uis
itio
n/c
on
stru
ctio
n Improvement
(If any)
To
tal
cost
Lif
e o
f as
set
as p
er c
od
al
pro
vis
ion
s
No
. of
yea
r as
sets
is
in u
se
Rem
ain
ing
lif
e o
f as
sets
as
on
31.0
3.20
14
Rat
e o
f D
epre
ciat
ion
Acc
um
ula
ted
Dep
reci
atio
n t
ill
31.0
3.20
14
Net
Bo
ok
Val
ue
as
on
31.0
3.20
14
Cu
rren
t U
se o
f B
uil
din
g
Giv
e re
fere
nce
of
titl
e
Do
cum
ent
Rem
ark
s
Sta
te
Dis
tric
t
To
wn
/Vil
lag
e
Len
gth
Bre
adth
Yea
r o
f
Imp
rov
emen
t
Co
st o
f
Imp
rov
emen
t
1 2 3 4 5 6 7 8 9 10 11 1
2 13 14 15 16 17 18 19 20 21 22 23
2
4 25
2
6
Notes:
1. Buildings should be categorized into Ajmer division offices, residential quarters, godowns, hospitals, workshops etc.
2. Each building should be identified separately.
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Indian Railways
Details of Bridges/Flyover/Tunnel/Subways
FA-3
S.N
o.
Sto
ck h
old
er c
od
e
Bri
dg
e ty
pe
(B
rid
ge/
RO
B/R
UB
)
Des
crip
tio
n(
Bri
dg
e n
o. O
r
RO
B/R
UB
no
.)
Blo
ck s
ecti
on
(B
etw
een
tw
o
stat
ion
s)
Ch
ain
age
(K
Ms)
Location
Ty
pe
of
bri
dg
e (A
rch
/ste
el
gir
der
/PS
C g
ird
er/R
CC
bo
x et
c.
Dimension of structure
Lo
adin
g b
rid
ge
san
ctio
n f
or
(MB
G/R
BG
/GC
) A
rea
of
lan
d o
n w
hic
h s
tru
ctu
re
is c
on
stru
cted
Dat
e o
f co
nst
ruct
ion
Co
st o
f co
nst
ruct
ion
Improv
ement
(If any)
To
tal
cost
Fu
nd
all
oca
tio
n c
od
e
Lif
e a
s p
er c
od
al p
rov
isio
ns
No
. of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
dat
e 31
.03.
2014
N
et b
oo
k v
alu
e as
on
31.
03.2
014
(Rs.
)
Ap
pro
ved
Drg
. No
.
Rem
ark
s
Sta
te
Dis
tric
t
To
wn
/Vil
lag
e
Len
gth
To
tal
no
. O
f sp
ans
No
. Of
span
-1
SP
-1
No
. Of
span
-2
SP
-2
No
. Of
span
-3
SP
-3
Yea
r o
f im
pro
vem
ent
Co
st o
f im
pro
vem
ent
1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
3
0
3
1
3
2
3
3
Notes:
1. Whereas possible, prepare a separate list of bridge/tunnel/subway etc.
2. Each such structure should be identified separately.
3. If any bridge/tunnel/subways is not in used, then same also may be included here. However further details may be given in 'Remark 'column.
4. If actual date of construction is not available but the year of construction is available, then year may be given in relevant column.
5. If any other detail is required to be given in respect of Bridge/tunnel etc., then same may be mentioned in 'Remark Column'.
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Indian Railways
Details of Roads/Streets
FA-4
S.N
o.
Sto
ck H
old
er C
od
e
Ty
pe
of
road
(N
H/S
H/m
un
icip
al
road
/vil
lag
e ro
ad e
tc.
Des
crip
tio
n o
f ro
ad (
join
ing
tow
n/v
illa
ge)
Sta
tio
n
Location
Sp
ecif
y w
het
her
th
e r
oad
/str
eet
is
con
cret
e/b
itu
men
/ku
tch
a/W
BM
Su
rvey
no
. of
the
lan
d w
her
e
stru
ctu
re i
s lo
cate
d
Dimension
of roads
Are
a o
f ro
ad (
Sq
. M.)
Dat
e o
f co
nst
ruct
ion
Co
st o
f co
nst
ruct
ion
Rep
air
Fre
qu
ency
Improvement
(If any)
To
tal
cost
Fu
nd
all
oca
tio
n c
od
e
Lif
e a
s p
er c
od
al p
rov
isio
ns
No
. of
yea
r in
use
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
dat
e
31.0
3.20
14
WD
V a
s o
n 3
1.03
.201
4
Giv
e re
fere
nce
of
titl
e d
ocu
men
t
Rem
ark
s
Sta
te
Dis
tric
t
To
wn
/vil
lag
e
Len
gth
Bre
adth
Yea
r o
f im
pro
vem
ent
Co
st o
f im
pro
ve
men
t
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Notes:
1. Here improvement means conversion of the road from one type of construction to another type of construction. E.g. Conversion of a tar road into a
concrete road. It may also include extension of road.
2. Each road should be identified separately.
3. If any road is not in used, then same also may be included here.
4. If actual date of construction is not available but the year of construction is available, then year may be given in relevant column.
5. If any other detail is required to be given in respect of road, then same may be mentioned in 'Remark Column'.
Draft
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188 | ICAI Accounting Research Foundation
Indian Railways
Details of Rail
FA-5A
S. N
o.
Div
isio
n/Z
on
al R
ailw
ays
Rai
l S
ecti
on
To
tal
Len
gth
(in
KM
s)
Ro
llin
g M
on
th
Ro
llin
g P
erio
d
Co
st o
f R
ails
(P
er K
M)
To
tal
Co
st
Dep
reci
able
Am
ou
nt
(To
tal
Co
st –
5%
Res
idu
al V
alu
e)
Lay
ing
Mo
nth
No
. o
f y
ears
is
in u
se
Co
dal
Lif
e
Dep
reci
atio
n R
ate
Dep
reci
atio
n
Net
Bo
ok
Val
ue
as
on
XX
.XX
.XX
XX
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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Indian Railways
Details of Sleeper
FA-5B
S. N
o.
DIV
/RL
Y
Sle
eper
Ty
pe
Lay
ing
Mo
nth
an
d Y
ear
Sle
eper
Den
sity
To
tal
Len
gth
(K
Ms)
To
tal
Sle
eper
s (N
os.
)
Co
st (
per
Sle
eper
)
To
tal
Co
st o
f S
leep
ers
Dep
reci
able
Am
ou
nt
(To
tal
Co
st
– 5%
Res
idu
al V
alu
e)
Co
dal
Lif
e
No
. o
f y
ear
is i
n u
se
Rat
e o
f D
epre
ciat
ion
Dep
reci
atio
n
Net
bo
ok
Val
ue
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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Indian Railways
Details of Ballast
FA-5C
S. N
o.
Div
isio
n/R
ailw
ay
Sec
tio
n
To
tal
Len
gth
(in
KM
s)
Scr
een
ing
Dat
e
Rat
e o
f B
alla
st
To
tal
Co
st
Dep
reci
able
Am
ou
nt
(To
tal
Co
st –
5%
Res
idu
al V
alu
e)
No
. o
f y
ears
is
in
use
Co
dal
Lif
e
Dep
reci
atio
n
Rat
e
Dep
reci
atio
n
Net
Blo
ck
1 2 3 4 5 6 7 8 9 10 11 12 13
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Indian Railways
Details of Track Fittings
FA-5D
S.N
o.
Div
isio
n/R
ailw
ay
Par
ticu
lars
Dat
e
Dat
e A
ssu
med
KM
.
Rat
e P
er K
M.
To
tal
Co
st
Dep
reci
able
Am
ou
nt
(To
tal
Co
st –
5%
Res
idu
al V
alu
e)
Use
ful
Lif
e
No
. o
f Y
ears
ass
et i
s in
use
Rat
e o
f D
epre
ciat
ion
Dep
reci
atio
n
Net
bo
ok
Val
ue
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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Indian Railways
Details of Furniture and Fixtures
FA-6
S.N
O.
Des
crip
tio
n
Lo
cati
on
Ref
eren
ce n
um
ber
(If
an
y)
Dat
e o
f
acq
uis
itio
n/c
on
stru
ctio
n
To
tal
no
of
un
its
Co
st p
er u
nit
To
tal
Co
st o
f
acq
uis
itio
n/c
on
stru
ctio
n
Lif
e o
f as
sets
as
per
co
dal
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
14
Net
bo
ok
val
ue
as
on
31.0
3.20
14 (
Rs.
)
Rem
ark
s
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Notes:
1. Furniture includes tables, chairs, cupboards, almirahs, fans, coolers, air conditioner, UPS, Refrigerator, TV, invertors etc.
2. Whereas possible, prepare a separate list for each class of furniture.
3. Assets reference number denotes any numbering/coding given to each piece of asset.
4. Details of the furniture & fixtures should be collected department/section/location wise.
5. If actual date of construction/acquisition is not available but the year of acquisition/construction is available, then year may be given in relevant column.
Draft
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Indian Railways
Details of Office Equipments
FA-7
S.N
O.
Des
crip
tio
n
Lo
cati
on
Ass
ets
Ref
eren
ce N
um
ber
Dat
e o
f a
cqu
isit
ion
To
tal
no
of
un
its
Co
st p
er u
nit
To
tal
cost
of
acq
uis
itio
n/
inst
alla
tio
n
Lif
e o
f as
sets
as
per
co
dal
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
14
Net
bo
ok
val
ue
as o
n 3
1.03
.201
4
(Rs.
)
Rem
ark
s
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Notes:
1. Office equipments include Fax Machine, Xerox Machine, Type writer, projector etc.
2. If possible, prepare a separate list for each class of office equipment.
3. Assets reference number denotes any numbering/coding given to each piece of asset.
4. If actual date of construction/installation is not available but the year of acquisition/construction is available, then year may be given in
relevant column.
Draft
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Indian Railways
Details of Vehicles
FA-8
S.N
O.
Des
crip
tio
n o
f v
ehic
les
Lo
cati
on
Vehicle's details
in respect of
Dat
e o
f a
cqu
isit
ion
Co
st o
f ac
qu
isit
ion
Details of
improvements
To
tal
cost
(R
s.)
Fu
nd
all
oca
tio
n c
od
e
Lif
e o
f v
ehic
le a
s p
er c
od
al
pro
vis
ion
s
No
of
yea
r v
ehic
le i
s in
use
Rat
e o
f d
epre
ciat
ion
acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
14
Ne
t b
oo
k v
alu
e as
on
31.
03.2
014
(Rs.
)
Giv
e r
efer
ence
of
the
avai
lab
le t
itle
do
cum
ents
Rem
ark
s
Reg
istr
atio
n
nu
mb
er
En
gin
e n
um
ber
Ch
assi
s n
um
ber
Date Cost
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Notes:
1. In Column 2, kindly specify the description of vehicles specifying whether it is car, jeeps, trucks, ambulance etc.
2. Also mention present use of vehicle in the remark column.
3. If actual date of acquisition is not available but the year of acquisition is available, then year may be given in relevant column.
4. Improvement of vehicles include extension of body or otherwise.
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2017
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Indian Railways
Details of Plant, Machinery &Equipments
FA-9
S.N
O.
Sto
ck H
old
er C
od
e
Un
it
Sta
tio
n
Lo
cati
on
Cat
ego
ry o
f M
ach
ine
Des
crip
tio
n o
f M
ach
ine
Cap
acit
y
CO
FM
OW
PO
no
. &
dat
e
Nam
e o
f S
up
pli
er
Co
st o
f ac
qu
isit
ion
/in
stal
lati
on
Dat
e o
f a
cqu
isit
ion
/in
stal
lati
on
Dat
e o
f co
mm
ence
men
t o
f
op
erat
ion
No
of
shif
ts i
n u
se
Details of
improvements
To
tal
cost
Fu
nd
all
oca
tio
n c
od
e
Lif
e o
f m
ach
ine
as p
er c
od
al
pro
vis
ion
s
No
of
yea
rs m
ach
iner
y i
s in
use
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
14
Net
bo
ok
val
ue
as o
n 3
1.03
.201
4
(Rs.
)
Giv
e re
fere
nce
of
the
avai
lab
le
titl
e d
ocu
men
ts
Cu
rren
t m
ark
et v
alu
e (i
f
Av
aila
ble
)
Co
nd
itio
n
Wh
eth
er S
urp
lus
Rem
ark
s
Dat
e
Co
st
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Notes:
1. Details of any improvements to the plant and machinery, which has resulted into increasing the capacity of the plant and machinery, should be mentioned
separately.
2. Also specify the general nature of machinery in relevant column.
3. Plant, machinery & equipment used in workshop for the purpose of repair & maintenance of Loco/Coach/Wagon will also be covered here.
4. If actual date of installation/acquisition is not available but the year of acquisition/installation is available, then year may be given in relevant column.
Draft
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Indian Railways
Details of Computers and Peripherals
FA-10
S. N
o.
Des
crip
tio
n
Lo
cati
on
Ref
eren
ce n
um
ber
Dat
e o
f a
cqu
isit
ion
/in
stal
lati
on
To
tal
no
of
un
its
Co
st p
er u
nit
To
tal
cost
of
acq
uis
itio
n
Lif
e o
f as
sets
as
per
co
dal
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
dat
e 3
1.03
.201
4
Net
bo
ok
val
ue
as o
n 3
1.03
.201
4
(Rs.
)
Rem
ark
s
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Notes:
1. Computers & peripherals include desktops/laptops/printers/networking equipments etc.
2. If possible, prepare a separate list for each type of item.
3. Assets reference number denotes any numbering/coding given to each piece of asset.
4. If actual date of installation/acquisition is not available but the year of acquisition/installation is available, then year may be given in relevant
column.
Draft
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Indian Railways
Details of Medical Equipments
FA-11
S.N
O.
Des
crip
tio
n
Lo
cati
on
Ref
eren
ce n
um
ber
Dat
e o
f a
cqu
isit
ion
/
inst
alla
tio
n
To
tal
no
of
un
its
Co
st p
er u
nit
To
tal
Co
st o
f ac
qu
isit
ion
Lif
e o
f as
sets
as
per
co
dal
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f D
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n
till
31.
03.2
014
Net
bo
ok
val
ue
as o
n
31.0
3.20
14 (
Rs.
)
Rem
ark
s
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Notes:
1. Medical equipments include all equipment which are using in hospitals maintained by Indian Railways.
2. If possible, prepare a separate list for each type of item.
3. Assets reference number denotes any numbering/coding given to each piece of asset.
4. If actual date of construction/acquisition is not available but the year of acquisition/construction is available, then year may be given in
relevant column.
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Indian Railways
Details of Loco/Coach/Wagon
FA-12
S.N
O.
Sto
ck h
old
er c
od
e
Dep
artm
ent
Gro
up
co
de
Su
b G
rou
p c
od
e
Ass
et r
efer
ence
no
.
Ty
pe
of
wag
on
/co
ach
/lo
co
Des
crip
tio
n
Lo
cati
on
Dat
e o
f a
cqu
isit
ion
/
con
stru
ctio
n
Dat
e o
f co
mm
ence
men
t
of
op
erat
ion
To
tal
qu
anti
ty
Co
st o
f ac
qu
isit
ion
/
con
stru
ctio
n p
er
wag
on
/lo
co/c
oac
h
Details of
improvement
To
tal
Co
st
Fu
nd
all
oca
tio
n c
od
e
Lif
e a
s p
er c
od
al
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f D
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
dat
e
31.0
3.20
14
Net
bo
ok
val
ue
as o
n
31.0
3.20
14 (
Rs.
)
Rem
ark
s
Dat
e
Co
st
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Notes:
1. Each coach/wagon/loco should be identified separately.
2. Kindly, prepare a separate list for each type of wagon/coach/loco. For example, sleeper coach/AC coach/coach BG/Coach MG /Wagon BG/ Wagon MG etc.
3. Assets reference number denotes any numbering/coding given to each piece of asset.
4. If actual date of construction/acquisition is not available but the year of acquisition/construction is available, then year may be given in relevant column.
5. If any other necessary details are required to be mention in relation to coach/wagon/loco, then same may be given in 'Remark Column'.
6. Here improvement does not mean periodic overhauling (POH). However, improvement includes any major change which increases the life of
coach/wagon/loco.
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Indian Railways
Details of Capital Work in Progress
FA-13
S.NO. Description
of Work Location
Estimated
Cost of work
Cost incurred
till 31.03.2014
Fund
allocation
code
Estimated
date of
completion
of the work
Remarks
1 2 3 4 5 6 7 8
Notes:
1. Whereas possible please provide the separate details of every type of work in progress.
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Indian Railways
Details of Plant, Machinery &Equipments (Signalling)
FA-14
S.N
O.
Des
crip
tio
n o
f M
ach
iner
y
Sp
ecif
icat
ion
/nat
ure
of
mac
hin
e
Lo
cati
on
/Sta
tio
n
Cap
acit
y
Nu
mb
er o
f sh
ifts
in
use
Dat
e o
f a
cqu
isit
ion
/in
stal
lati
on
Dat
e o
f co
mm
ence
men
t o
f
op
erat
ion
To
tal
Co
st o
f
acq
uis
itio
n/i
nst
alla
tio
n
Fu
nd
all
oca
tio
n c
od
e
Lif
e o
f m
ach
ine
as p
er c
od
al
pro
vis
ion
s
No
of
yea
rs m
ach
iner
y i
s in
use
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
14
Ne
t b
oo
k v
alu
e as
on
31.
03.2
014
(Rs.
)
Giv
e r
efer
ence
of
the
avai
lab
le t
itle
do
cum
ents
Cu
rren
t m
ark
et v
alu
e (
if A
vai
lab
le)
Rem
ark
s
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Notes:
1. If actual date of installation/acquisition is not available but the year of acquisition/installation is available, then year may be given in relevant
column.
Draft
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Indian Railways
Details of Plant, Machinery &Equipments (Telecom)
FA-15
S.N
O.
Des
crip
tio
n o
f M
ach
iner
y
Sp
eci
fica
tio
n/n
atu
re o
f m
ach
ine
Blo
ck S
ecti
on
(Bet
wee
n t
wo
sta
tio
ns)
Cap
acit
y
Nu
mb
er o
f sh
ifts
in
use
Dat
e o
f a
cqu
isit
ion
/in
stal
lati
on
Dat
e o
f co
mm
ence
men
t o
f o
per
atio
n
To
tal
Co
st o
f
acq
uis
itio
n/i
nst
alla
tio
n
Fu
nd
all
oca
tio
n c
od
e
Lif
e o
f m
ach
ine
as p
er c
od
al
pro
vis
ion
s
No
of
yea
rs m
ach
iner
y i
s in
use
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
14
Net
bo
ok
val
ue
as o
n 3
1.03
.201
4 (R
s.)
Giv
e r
efer
ence
of
the
avai
lab
le t
itle
do
cum
ents
Cu
rren
t m
ark
et v
alu
e (
if A
vai
lab
le)
Rem
ark
s
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Notes:
1. If actual date of installation/acquisition is not available but the year of acquisition/installation is available, then year may be given in
relevant column.
Draft
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2017
202 | ICAI Accounting Research Foundation
Indian Railways
Details of Electrical Equipments& Fittings
FA-16
S.N
O.
Des
crip
tio
n
Sto
ck H
old
er
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Chainage (in
Km)
Len
gth
/No
of
un
its
Dat
e o
f
acq
uis
itio
n/i
nst
alla
tio
n
Co
st p
er u
nit
Details of
Improvemen
t
To
tal
cost
of
acq
uis
itio
n/i
nst
alla
tio
n
Lif
e o
f as
sets
as
per
co
dal
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
14
Net
bo
ok
val
ue
as o
n
31.0
3.20
14 (
Rs.
)
Rem
ark
s
Fro
m
To
Dat
e
cost
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Notes:
1. Assets reference number denotes any numbering/coding given to each piece of asset.
2. If actual date of construction/installation is not available but the year of acquisition/construction is available, then year may be given in
relevant column.
3. All electrical fitting and electrical equipment should be covered here such as power station, water pump etc.
Draft
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Notes:
1. Intangible assets include software’s, patents, copyright etc.
2. Antivirus software’s having licence for more than one year should also be mention here.
Indian Railways
Details of Intangible Assets
FA-17
S.NO. Description
Date of
acquisition/
development/
installation
Cost of
acquisition/
development/
installation
Location
No of
year for
which
license is
obtained
Amortizatio
n/
depreciation
Rate
Accumulated
depreciation/
amortization
value till
31.03.2014
Net Book
Value as
on
31.03.2014
(Rs.)
Remarks
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Indian Railways
Details of Conductors (Wire)
Form:- FA-18A
S.N
o.
Sto
ck H
old
er
Des
crip
tio
n o
f C
on
du
cto
rs
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Chainage (in
KMs)
Len
gth
of
Cab
le
Dat
e o
f a
cqu
isit
ion
/
inst
alla
tio
n
Co
st (
Rs.
)
Details of
Improvement
To
tal
cost
(R
s.)
Fu
nd
All
oca
tio
n C
od
e
Use
ful
life
of
asse
ts a
s p
er
cod
al p
rov
isio
ns
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
15
Net
bo
ok
val
ue
as o
n
31.0
3.20
15 (
Rs.
)
Rem
ark
s
Fro
m
To
Dat
e
Co
st (
Rs.
)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
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Indian Railways
Details of Transformer
Form:- FA-18B
S.N
o.
Sto
ck H
old
er
Des
crip
tio
n o
f T
ran
sfo
rmer
Cap
acit
y o
f T
ran
sfo
rmer
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Dat
e o
f a
cqu
isit
ion
/in
stal
lati
on
No
. of
un
its
Co
st p
er U
nit
Co
st (
Rs.
)
Details of
Improvement
To
tal
cost
(R
s.)
Fu
nd
All
oca
tio
n C
od
e
Use
ful
life
of
asse
ts a
s p
er c
od
al p
rov
isio
ns
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
15
Ne
t b
oo
k v
alu
e a
s o
n 3
1.03
.201
5 (
Rs.
)
Rem
ark
s
Dat
e
Co
st (
Rs.
)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
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206 | ICAI Accounting Research Foundation
Indian Railways
Details of Mast/Portal Structure
Form:- FA-18C
S.N
o.
Sto
ck H
old
er
De
scri
pti
on
of
Mas
t/P
ort
al S
tru
ctu
re
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Dat
e o
f C
on
stru
ctio
n/i
nst
alla
tio
n
Co
st (
Rs.
)
Details of
Improvement
To
tal
cost
(R
s.)
Fu
nd
All
oca
tio
n C
od
e
Use
ful
life
of
asse
ts a
s p
er c
od
al
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
15
Net
bo
ok
val
ue
as
on
31.
03.2
015
(R
s.)
Rem
ark
s
Dat
e
Co
st (
Rs.
)
1 2 3 5 6 7 10 11 12 13 14 15 16 17 18 19 20
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Indian Railways
Details of Other Equipment’s (OHE)
Form:- FA-18D
S.N
o.
Sto
ck H
old
er
Des
crip
tio
n o
f O
ther
Eq
uip
men
ts
Ass
ets
refe
ren
ce n
o. (
if a
ny
)
Lo
cati
on
Da
te o
f A
cqu
isit
ion
/in
stal
lati
on
No
. o
f u
nit
s
Co
st p
er U
nit
Co
st (
Rs.
)
Details of
Improvemen
t
To
tal
cost
(R
s.)
Fu
nd
All
oca
tio
n C
od
e
Use
ful
life
of
asse
ts a
s p
er c
od
al
pro
vis
ion
s
No
of
yea
r as
sets
is
in u
se
Rat
e o
f d
epre
ciat
ion
Acc
um
ula
ted
dep
reci
atio
n t
ill
31.0
3.20
15
Net
bo
ok
val
ue
as
on
31.
03.2
015
(R
s.)
Rem
ark
s
Dat
e
Co
st (
Rs.
)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
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14.2 Annexure 2 - Formats of Financial Statements
Indian Railways
Statement of Financial Position
As at 31st March 2015
(Figure in
Rs.)
Schedule 2015 2014
Liabilities
Equity
Capital at Charge (Loan in perpetuity) 1
Safety Funds 2
Designated Funds (Internally Generated Funds) 3
Investment Financed from Designated Fund
(Internally Generated Funds) 4
Reserves and Surplus 5
XX XX
Non-current liabilities
Finance Lease Obligations 6
Deposits 7
Provident Fund and Other Funds
XX XX
Current Liabilities
Finance Lease Obligations
Employee Benefits Payable 8
Other Liabilities 9
XX XX
Total Liabilities XXX XXX
Assets
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Non Current assets
Fixed Assets
Tangible Assets 10
Gross Block
Less: Accumulated Depreciation
Net Block
Intangible Assets 11
Gross Block
Less: Accumulated Amortisation
Net Block
Capital work in progress (CWIP) 12
Loans and advances 13
XX XX
Current Assets
Cash and cash equivalents 14
Receivables 15
Inventories 16
Other assets 17
Adjustment Accounts (Annexure C)
XX XX
Total Assets XXX XXX
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Indian Railways
Statement of Financial Performance
For the year ended 31st March 2015
(Figure in Rs.)
Particulars Schedule 2015
Revenue
Revenue from operations
Transfer of Coaches to Railways 18
Sale of Coaches to Non Railway Customers 19
Coaching Earnings-Passenger 20
Coaching Earnings- Other than passenger 21
Goods earnings 22
Sundry Other Earnings 23
Total Revenue (A) XX
Expenses
Cost of Material Consumed 24
Establishment Expenses 25
Power and Fuel 26
Repair & Maintenance - other than Stores 27
Repair & Maintenance – Stores 27
Finance Lease Charges
Operational Expenses 28
Other expenses 29
Changes in Inventories of Finished Goods, Stock in Process &
Stock in Trade 30
Statutory Audit
Expenditure on Survey
XX
Profit before Depreciation and Appropriation to Funds and
payment of Dividend
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Depreciation and Amortization 10, 11
Profit after Depreciation and before Appropriation to Funds
Appropriation to Pension Fund
Appropriation to Depreciation Reserve Fund
Dividend Paid
Surplus/(Deficit) After contribution to Reserve Fund XX
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Indian Railways
Schedules forming part of Financial Statements
Schedule 1 Capital at Charge (Loan in Perpetuity)
(Figure in Rs.)
Particulars Opening Balance as
on 1st April 2014
Addition During
the Year
Adjustment during
the Year on account
of TWFA
Closing Balance as
on 31st March 2015
Loan Capital
Total
Schedule 2 Safety Funds
(Figure in Rs.)
Particulars
Opening Balance
as on 1st April
2014
Addition during
the year
Closing Balance
as on 31st March
2015
Special Railway Safety Fund
Railway Safety Fund
Total
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Schedule 3 Designated Funds (Internally Generated Funds)
(Figure in Rs.)
Particulars Opening Balance
as on 1st April 2014
Additions during
the year
Interest earned
during the year
Deduction during
the year
Closing Balance as
on 31st March
2015
Depreciation Reserve
Fund
Pension Fund
Total
Schedule 4 Investment Financed from Designated Fund (Internally Generated Funds)
(Figure in Rs.)
Particulars
Opening Balance as
on 1st April 2014
Additions during
the year
Adjustment during
the year on account
of TWFA
Closing Balance as
on 31st March 2015
Railway Capital Fund
Depreciation Reserve Fund
Development Fund
Open Line Works Revenue
Total
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Schedule 5 Reserves and Surplus
(Figure in Rs.)
Particulars Opening Balance as
on 1st April 2014
Additions during the
year
Interest earned
during the year
Deduction during
the year
Closing Balance as
on 31st March 2015
Surplus carried
forward from P & L
account
Total
Schedule 6 Deposits
(Figure in Rs.)
Particulars As on 31st March
2015
As on 1st April
2014
Security Deposits of Subordinates
Security Deposits of Contractors & others
Contribution for work done for Private persons and Public bodies
Sums due to Contractors on closed accounts
Private Companies
Miscellaneous Deposits
Total
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Schedule 7 Provident Fund and other Funds
(Figure in Rs.)
Particulars As on 31st
March 2015
As on 1st April
2014
General Provident Fund
State Railway Provident Fund (Non-Contributory)
Staff Benefit Fund
Total
Schedule 8 Employees Benefits Payable
(Figure in Rs.)
Particulars
Non-current Current
As on 31st
March 2015
As on 1st April
2014
As on 31st
March 2015
As on 1st April
2014
Salary Payable
Wages Payable
Dearness Allowance Payable
Incentive Payable
Total
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Schedule 9 Other Liabilities
(Figure in Rs.)
Particulars
Non-current Current
As on 31st
March 2015
As on 1st April
2014
As on 31st March
2015
As on 1st April
2014
Expenses Payable (Annexure A)
Advance Earnings (Annexure B)
Commercial claims pending payments
Deposit of Govt. Companies
New Pension Scheme
Unpaid Wages
Payable to contractor and Suppliers
Total
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Schedule 10 Tangible Assets
(Figure in Rs.)
Particulars
Gross Block Depreciation/Amortization Net Block
Opening
Balance as
on 20X4
Additions/
Adjustment
during the
year
Deduction/
adjustment
during the
year
Gross
block as
on 20X5
Accumulated
Depreciation
as on 20X4
Depreciation
for the year
Deduction/
Adjustment
Accumulated
depreciation
till 20X5
As on
20x4
As
on
20x5
Land
Buildings
Bridge/Flyover/
Tunnel/Subways
Road/Street
Railway Tracks
Furniture and
Fixtures
Office
Equipments
Vehicles
Computers and
Peripherals
Locomotives
Coaches
Plant, Machinery
and Equipments-
Signal
Plant, Machinery
and Equipments-
Telecom
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Plant, Machinery
and Equipments-
Electrical
Plant, Machinery
and Equipments-
Medical
Plant, Machinery
and Equipments-
Mechanical, Civil
and Others
Total (A) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
Leased Assets
Locomotive
(Leased)
Coaches (Leased)
Wagons (Leased)
Total (B) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
Grand Total
(A+B) XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
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Schedule 11 Intangible Assets
(Figure in Rs.)
Particulars
Gross Block Depreciation/Amortization
Net
Block
Opening
Balance as
on 20X4
Addition/
Adjustment
during the
year
Deduction/
Adjustment
during the
year
Gross
block as
on 20X5
Accumulated
amortization
as on 20X4
Amortizatio
n for the
year
Deduction/
Adjustment
Accumulated
amortization
till 20X5
As on
20X4
As on 20X5
Software
Total XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
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Schedule 12 Capital Work in Progress (CWIP)
(Figure in
Rs.)
Particular
Opening
Balance as on
1st April 2014
Addition/
Adjustment
during the year
Transfer to
fixed assets
during the year
Closing
Balance as on
31st March
2015
Capital work in Progress
Total
Schedule 14 Cash and Cash Equivalents
(Figure in Rs.)
Particulars
As on 31st March
2015
As on 1st April
2014
Cash Imprest
Departmental Cash Balances
Cheques and Bills
Remittance into Bank
Saving Account with Government
Account with RBI
Public Sector Bank Suspense
Total
Schedule 13 Loans and Advances
(Figure in Rs.)
Particulars
As on 31st
March 2015
As on 1st April
2014
Misc. Advance Revenue
Departmental Advances
Advance against State Railway Provident Fund
Total
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Schedule 15 Receivables
(Figure in Rs.)
Particulars
As on 31st
March 2015
As on 1st April
2014
Pay and Accounts Office
Accountant General
Controller of Defence Accounts (Defence CDA)
Postal and Telecom Department
Rajasthan Tourism Development Corporation Limited (RTDC)
FSC Recoverable
CUG Recoverable
Adjustment account with Pakistan Railways
Traffic Suspense
Interest Receivable from PSPCL
Rent & Other Charges Receivable
Receivable from Parties
DRDO Receivable
Total
Schedule 16 Inventories
(Figure in Rs.)
Particulars
As on 31st
March 2015
As on 1st April
2014
Store Suspense
Workshop Manufacturing Suspense
Diesel
Stores and Spares
Raw Material
Work in Progress
Finished Goods
Scrap
Total
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Schedule 17 Other Assets (Figure in Rs.)
Particulars Non-Current Current
As on 31st
March 2015
As on 1st
April 2014
As on 31st
March 2015
As on 1st
April 2014
Security and Earnest Money
Deposit
Deposit with Central Government
(Contra to Schedule 6)
Total
Schedule 18 Transfer of Coaches to Railways (Figures in Rs.)
Particulars As on 31st March 2015
Coaches
Shell
Bogies
Total Sales/Transfers
Less: Excise Duty
Total
Schedule 19 Sale of Coaches to Non Railway Customers
(Figures in Rs.)
Particulars As on 31st March 2015
Gross Sales
Less: Excise Duty
Total
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Schedule 20 Coaching Earnings- Passenger (Figure in Rs.)
Particulars As on 31st March 2015
Earning from passenger traffic
Add: Advance apportioned earning for ticket booked in 2013-14 and
travel take place in 2014-15
Less: Advance apportioned earning for ticket booked in 2014-15 and
travel take place in 2015-16
Total
Schedule 21 Coaching Earnings- Other than passenger (Figure in Rs.)
Particulars As on 31st March 2015
Parcel
Luggage
Special Train reserve carriage - Other than Military
Special Train reserve carriage – Military
Carriage of live stock by passenger
Haulage of Postal Vans & Compartments
Penalty Levied for irregular travelling
Wharfage
Receipt of left luggage
Platform Ticket
Misc. Coaching receipt
Total
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Schedule 22 Goods Earnings (Figure in Rs.)
Particulars As on 31st March 2015
Coal, Coke etc.
Steel
Iron
Fertilizers
Wharfage and Demurrage
Other Goods Traffic
Add: Advance apportioned earning (FY 2013-14)
Less: Advance apportioned earning (FY 2014-15)
Total
Schedule 23 - Sundry Other Earnings
(Figure in Rs.)
Particulars As on 31st March 2015
Receipts from Railway Recruitment Board
Advertisement receipts
Rental Income
Catering Income
Sale of Scrap
Reimbursement of Operating Loss on Strategic Lines
Subsidy from General Revenue towards Dividend Relief and Other
concessions
Medical Receipt
Interest & Penalty
Share of Misc. Receipts
Profit on Sale of Fixed Assets
Other Miscellaneous Income
Add: Income received in Advance (2013-14) and considered as income in
2014-15
Less: Income received in Advance (2014-15) and pertains to income for
2015-16
Total
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Schedule 24 - Cost of Material Consumed
(Figure in Rs.)
Particulars As on 31st March 2015
Direct Purchases
Material Issued
Raw Material Adjustment Account
Manufacturing Expenses as per Annexure- E
Total
Schedule 25 Establishment Expenses
(Figure in Rs.)
Particulars As on 31st March 2015
Salary, Wages and other benefits (Annexure D)
Pension and other Retirement benefits
Staff Welfare expenses
Administrative Expenses
Miscellaneous Establishment
Bonus & Allowance
Incentives
Medical Expenses
Govt Contribution to Pension fund (NPS)
Fees & Honorarium
Workmen Compensation
Cost of Railway Board
Total
Schedule 26 Power and Fuel (Figure in Rs.)
Particulars As on 31st March 2015
Diesel Traction (Demand 10)
Total
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Schedule 27 Repair and Maintenance
(Figure in Rs.)
Particulars As on 31st March 2015
A) Stores
Locos (Demand 5)
Wagons (Demand 6)
Coaches (Demand 6)
EMU/DMU (Demand 6)
Plant, Machinery and Equipment (Signal and Telecom) (Demand 7)
Plant, Machinery and Equipment (Mechanical) (Demand 7)
Plant, Machinery and Equipment (Electrical) (Demand 7)
Tracks (Demand 4)
Bridge/Tunnel (Demand 4)
Building (Demand 4)
Repair and Maintenance - Others (Demand 4 to Demand 6)
B) Other than Stores
Locos (Demand 5)
Wagons (Demand 6)
Coaches (Demand 6)
EMU/DMU (Demand 6)
Plant, Machinery and Equipment (Signal and Telecom) (Demand 7)
Plant, Machinery and Equipment (Mechanical) (Demand 7)
Plant, Machinery and Equipment (Electrical) (Demand 7)
Tracks (Demand 4)
Bridge/Tunnel (Demand 4)
Building (Demand 4)
Repair and Maintenance - Others (Demand 4 to Demand 6)
Total
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Schedule 28 Operational Expenses (Figure in Rs.)
Particulars As on 31st March 2015
Locomotives (Demand 8)
Carriage and Wagons (Demand 8)
Train Operations (Demand 9)
Yard Operations (Demand 9)
Station Operations (Demand 9)
Other Operational Expenses (Demand 8 and Demand 9)
Total
Schedule 29 Other Expenses
(Figure in Rs.)
Particulars As on 31st March 2015
Security Expenses
Compensation and Claim paid
Workmen compensation
Catering Expenses
Misc. Expenses
Less: Outstanding expenses of 2013-14 and paid in 2014-15
Add: Outstanding expenses of FY 2014-15 and paid in FY 2015-16
Adjustment for increase in security deposit
Adjustment for Decrease in FSC Charges
Increase in CUG recoverable
Decrease in Pending commercial Claim
Total
Schedule 30 Changes in Inventories of Finished Goods, Stock in Process & Stock in Trade
(Figure in Rs.)
Particulars As on 31st March 2015
Opening Inventories
Less: Closing Inventories
Opening Inventories Diesel
Less: Closing Inventories Diesel
Net Consumption
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Annexure A : Expenses Payables
(Figure in Rs.)
Particulars As on 31st March 2015 As on 1st
April 2014
Hiring of vehicles
Telephone Bills
Advocate Dues
Electricity Bills
Water Charges
Other Expenses
Total
Annexure B : Advance Earnings
(Figure in Rs.)
Non-Current Current
Particulars As on 31st
March 2015
As on 1st
April 2014
As on 31st
March 2015
As on 1st
April 2014
Advance income from Catering/
Advertisement/ ATM contractors at Station
Way Leave Charges
Advance apportioned earning - Freight
Advance apportioned Earning - Passenger
Total
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Annexure C - Adjustment Accounts
(Figure in Rs.)
Particulars Amount
Opening Balance on account of Adjustments
a) Within Indian Railways
Inter Zonal Railway Transactions (Dr.)
Inter Zonal Railway Transactions (Cr.)
Railway Capital Fund
Development Fund
Total Adjustment within Indian Railways
b) With Reserve Bank of India
Deposit with RBI
Total Adjustment with RBI
c) With Government of India
Loan Capital
Railway Safety Fund
Advance to Employee
Tax Deducted at Source (TDS)
Service Tax
Excise Duty
Central Government Health Scheme
Employee Insurance Scheme
Employee Group Insurance Scheme
Interest on Civil Advances
Dividend Payable to General Revenue
Subsidy Receivable
Family Welfare
Total Adjustment with Government of Indian
d) Misc. Adjustments
Adjustment on account of difference between Opening and Closing
balance in Saving A/c with Govt.
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Adjustment on account of difference between Opening and Closing
balance in Deposit with Government.
Total Misc. Adjustment
Total Adjustment Accounts
Annexure D - Salary, Wages and other benefits (Figure in Rs.)
Particulars Total
Demand 3 - General Superintendence and Services
Demand 4 - Repair and Maintenance of Permanent Way and Work
Demand 5 - Repair and Maintenance of Motive Power
Demand 6 - Repair and Maintenance of Carriage and Wagons
Demand 7 - Repair and Maintenance of Plant and Equipment
Demand 8 - Operating Expenses of Rolling Stock and Equipment
Demand 9 - Operating Expenses – Traffic
Demand 10 - Operating Expenses – Fuel
Demand 11 - Staff Welfare and Amenities
Demand 12 - Misc. Working Expenses
Total
Annexure E : Manufacturing Expenses (Figure in Rs.)
Particulars Total
Chemicals
Chemicals Return
Consumables
Consumables Stores
Custom Duty
Excise Duty
Freight Charges
Gases
Inspection Charges
Material Return
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Non Ferrous Return
Other Expenses
Petroleum , oil & lubricants
Power , Fuel and Other Utilities
Production expenses
Stores & Spares
Testing Charges
Tools Consumption
Total
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14.3 Annexure 3 - Accrual Impact Sheet (Current Assets and Liabilities)
S. No. Accrual Element Form No.
1 Detail of Investment CA-1
2 Details of Advances to employees CA-2
3 Details of Misc. Advances other than employees CA-3
4 Details of EMD and Security Deposit CA-4
5 Transfer Certificate-Debit CA-5
6 Transfer Certificate-Credit CA-6
7 Siding charges CA-7
8 Details of Bank Balances CA-8
9 Details of Cash and Cash Equivalents CA-9
10 Inventory at shop floor sub store CA-10
11 Diesel Stock in Railway Diesel Installation (RDI) CA-10A
12 Imprest CA-11
13 Any Receivable from State Government, Central Government,
Private Parties etc. CA-12
14 Details of Foreign service contribution CA-13
15 Advances against State Railway Provident Fund CA-14
16 Details of Warranty Charges CA-15
17 Details TDS Payable Under Section 192 CL-1
18 Details TDS Payable Under Section 194C CL-2
19 Details TDS Payable Under Section 194J CL-3
20 Details of Service Tax Payable CL-4
21 Details of Sales Tax/Vat Payable CL-5
22 Details of Wages Payable CL-6
23 Demand payable/Salary Payable CL-7
24 Details of Provident Fund CL-8
25 Details of other Employee Benefits Payable CL-9
26 Expenses Payable CL-10
27 Details of amount payable to Contractors/Suppliers CL-11
28 Indian railways deposit CL-12
29 Details of Various Fund Balances CL-13
30 Details of Loan Payables CL-14
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31 Payable to Contractor/Supplier-Supply contract CL-15
32 Contractual Liabilities for works contract CL-16
33 Details of Earning Contracts CL-17
34 Details of Income Received in Advance/Way Leave Charges CL-18
35 Details of pending claims CL-19
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Indian Railways
Details of Investments
Form:- CA- 1
S.No. Description Specify the
fund from
which
Investment
made
Nature
of
Deposit
Date of
Investment/
Deposit
(DD/MM/YY)
Duration
of
Investment
Amount
Invested
(Rs.)
Accrued
Interest
upto
31.03.2014
(Rs.)
Closing
Bal. as on
31.03.2014
(Rs.)
Accrued
Interest
upto
31.03.2015
(Rs.)
Closing
Bal. as on
31.03.2015
(Rs.)
1 2 3 4 5 6 7 8 9 10 11
Prepared By:- Checked By:-
Note:
1. Under column 'Description' name of Financial Institution/Bank/P.O. where amount has been deposited is required to be provided.
2. Under Column 'Nature of deposit' nature of investment made like Fixed Deposit/Recurring Deposit etc. is required to be given.
3. Under column 7, please compute the interest between the periods of last receipt of the interest till the cut-off date i.e. 31.03.2014, even if
the interest is not due, or the investment has not matured.
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Indian Railways
Details of Advance to Employees
Form:- CA-2
S.No. Name of
Employee
Nature of
Advance
Amount
Advanced
(Rs.)
Principal
outstanding
as on
31.03.2014
(Rs.)
Interest
receivable
as on
31.03.2014
(Rs.)
Total
amount
outstanding
as on
31.03.2014
(Rs.)
Principal
outstanding
as on
31.03.2015
(Rs.)
Interest
receivable
as on
31.03.2015
(Rs.)
Total
amount
outstandin
g as on
31.03.2015
(Rs.)
Prepared By:- Checked By:-
Note:
1. Under column 'Nature of Advance' type of advance like 'House Building Advance', 'Computer Advance', 'Festival Advance' etc., is
required to be given.
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Indian Railways
Details of Misc. Advance
Form:- CA-3
S.No. Name of
Supplier/
Contractors
Nature of
Advance
Date of
Advance
(DD/MM/YY)
Amount
Advanced
(Rs.)
Interest
receivable as
on 31.03.2014
(if any) (Rs.)
Total amount
outstanding as
on 31.03.2014
(Rs.)
Interest
receivable as
on 31.03.2015
(if any) (Rs.)
Total amount
outstanding as
on 31.03.2015
(Rs.)
Prepared By:- Checked By:-
Indian Railways
Details of Earnest money and Security Deposit
Form -CA-4
S.No. Particulars Nature of
Deposit
Amount of Deposit as
on 31.03.2014 (Rs.)
Amount of Deposit as
on 31.03.2015 (Rs.)
Remark(s)
Prepared By:- Checked By:-
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Indian Railways
Transfer Certificate (TC) Debit
Form:- CA-5
S. No. Name of
Accounting
Unit
Particulars
of TC
Specify
whether
inward or
outward
Date of
TC
TC reference
no. (if any)
Total amount
outstanding as on
31.03.2014 (Rs.)
Total amount
outstanding as on
31.03.2015 (Rs.)
Remarks
Prepared By:- Checked By:
Note:
1. Detail of all pending TC as on 31.03.2014/31.03.2015 for which no accounting is done will required to be given in this format.
2. If TC Pertains to the Previous year than year of TC should be mentioned in the Remarks column.
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Indian Railways
Transfer Certificate (TC) Credit
Form:- CA-6
S. No. Name of
Accounting
Unit
Particulars
of TC
Specify
whether
inward or
outward
Date of
TC
TC
reference
no. (if any)
Total amount
outstanding as on
31.03.2014 (Rs.)
Total amount
outstanding as on
31.03.2015 (Rs.)
Remarks
Prepared By:- Checked By:-
Note:
1. Detail of all pending TC as on 31.03.2014/31.03.2015 for which no accountal is done will required to be given in this format.
2. If TC Pertains to the Previous year than year of TC should be mentioned in the Remarks column.
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Indian Railways
Details of Demand Recoverable
Form:- CA-7
S. No. Name of Parties Nature of
Demand
Due date of
Payment
(DD/MM/YY)
Total amount
outstanding as on
31.03.2014 (Rs)
Total amount
outstanding as on
31.03.2015 (Rs)
Prepared By:- Checked By:-
Notes:
1. Only details of any amount due as on 31.03.15 on account of land license fee, building rent, etc. for which bill has not been raised
will be included here.
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Indian Railways
Details of Demand Recoverable
Form: CA-8
S. No. Name of
Account(s)
Name of the
Bank
Branch Balance as on
31.03.2014 (Rs.)
Balance as on
31.03.2015 (Rs.)
Prepared By:- Checked By:-
Indian Railways
Details of Cash and Cash Equivalents
Form: CA-9
S. No. Particulars Closing Balance as on
31.03.2014 (Rs.)
Closing Balance as on
31.03.2015 (Rs.)
Prepared By:- Checked By:-
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Indian Railways
Details of Inventory/Closing Stock
Form: CA-10
S.No. Name of
Item/
Material
Specification
(if any)
Unit of
Measurement
Qty/No. of
units of item
in stock as
on 31.03.2014
Unit
Cost
(Rs.)
Total Value
as on
31.03.2014
(Rs.)
Qty/No. of
units of item
in stock as
on 31.03.2015
Unit
Cost
(Rs.)
Total Value
as on
31.03.2015
(Rs.)
Prepared By:- Checked By:-
Notes:
1. Inventory at shop floor sub store will also be provided here.
2. Detail of any unconsumed material lying at site may also be provided.
3. Detail of any scrap lying in store is to be given separately in this format.
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Indian Railways
Diesel at Railway Diesel Institution
Form: CA-10A S
.No
.
Tan
k N
o.
Cap
acit
y
Quantity as
on 31st
March 2014
Rate of
purchase
Unit of
Measurement
(UOM)
Total
Amount
(Rs.)
Quantity as
on 31st
March 2015
Rate of
purchase
Unit of
Measurement
(UOM)
Total Amount
(Rs.)
Prepared By:- Checked By:-
Note:
1. Detail of fuel as on 31.03.2014 and 31.03.2015 at RDI is to be given in this format.
Indian Railways
Details of Imprest
Form: CA-11
S. No. Particular of
employees
Purpose of
Imprest
Amount of
Imprest Given
Closing Balance as
on 31.03.2014 (Rs.)
Closing Balance as on
31.03.2015 (Rs.)
Prepared By:- Checked By:-
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Indian Railways
Details of Receivables
Form - CA 12
S.
No
.
Particulars Opening Balance
as on 01.04.15
(Rs.)
Amount of Bill
raised during the
Year
Amount
Received during
the Year
Total amount
outstanding as on
31.03.2015 (Rs)
Prepared By:- Checked By:-
Notes:
1. Any amount receivable from State Government, Central Government, Private Parties, RTDC etc. will be included here.
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Indian Railways
Details of Foreign Service Contribution
Form: CA - 13
S.
No.
Name of
Employee
Date of
Deputation
Amount to be
received
Amount
Recovered
Outstanding
Balance
Prepared By:- Checked By:-
Indian Railways
Advance Against State Railway Provident Fund
Form:- CA-14
S.
No.
Name of Employee Total amount
outstanding as on
31.03.2014 (Rs.)
Total amount
outstanding as on
31.03.2015 (Rs.)
Prepared By:- Checked By:-
Note:
1. Details of advances which are given to employees form State Railway Provident Fund will be provided in this format.
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Indian Railways
Details of Warranty Charges
Form:- CA-15
S. No. Particular of
Warranty
Period of warranty Amount charged
exclusively for
warranty
Amount to be carried
forward in next
Financial Year From To
Prepared By:- Checked By:-
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Indian Railways
Details of TDS payable Under Section 192 (Salary Payment)
Form:- CL-1
S.No
.
Particulars TDS payable as
on 31.03.2014 (Rs.)
TDS payable as on
31.03.2015 (Rs.)
Remarks
Prepared By:- Checked By:-
Indian Railways
Details of TDS payable Under Section 194C (Payment to Contractors)
Form:- CL-2
S.No. Name of
Contractor
Nature of
Expenditure
TDS Payable as
on 31.03.2014
(Rs.)
TDS Payable
as on
31.03.2015 (Rs.)
Remark
s
Prepared By:- Checked By:-
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Indian Railways
Details of TDS payable Under Section 194J (Payment for Professional Services)
Form:- CL-3
S.No. Particular of
Services
Name of Service
Provider
TDS Payable as
on 31.03.2014
(Rs.)
TDS Payable as
on 31.03.2015
(Rs.)
Remarks
Prepared By:- Checked By:-
Indian Railways
Details of Service Tax Payable
Form:- CL-4
S.No
.
Particulars Balance
Outstanding on
31.03.2014 (Rs.)
Balance Outstanding
on 31.03.2015 (Rs.)
Remarks
Prepared By:- Checked By:-
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Indian Railways
Details of Sales Tax/ VAT Payable
Form:- CL-5
S.No
.
Particulars Balance
Outstanding on
31.03.2014 (Rs.)
Balance
Outstanding
on 31.03.2015
(Rs.)
Remarks
Prepared By:- Checked By:-
Indian Railways
Details of Wages Payable
Form:- CL-6
S.No. Particular of Wages Balance Outstanding
on 31.03.2014 (Rs.)
Balance Outstanding
on 31.03.2015 (Rs.)
Remarks
Prepared By:- Checked By:-
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Indian Railways
Details of Salary Payable/Demand Payable
Form:- CL-7
S.No
.
Particulars Balance Outstanding
on 31.03.2014 (Rs.)
Balance Outstanding
on 31.03.2015 (Rs.)
Remarks
(If any)
Prepared By:-
Checked
By:-
Notes:
1. Details of any amount payable in respect of salary, arrear of salary, VRS, NPS, compensation, etc., is to be given in this format.
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Indian Railways
Details of Provident Fund (PF)
Form:- CL-8
S.No. Opening Balance
as on 01.04.2014
Subscription
received during
the year
Interest earned
during the year
Withdrawal/Payment to
subscriber made during the
year
Closing Balance
as on 31.03.2015
Prepared By:- Checked By:-
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Indian Railways
Details of other Employee Benefits Payable
Form:- CL-9
S.No
.
Particulars Balance
Outstanding as on
31.03.2014 (Rs.)
Balance
Outstanding as on
31.03.2015 (Rs.)
Remarks
1 Pension Benefit
2 New Pension Scheme
3 Employee Insurance scheme
4 Deposit linked insurance scheme
5 Others (if any)
Prepared By:- Checked By:-
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Indian Railways
Details of Expenses/Bills Payable
Form:- CL-10
S.No. Particulars of Expenditure Balance Outstanding
as on 31.03.2014 (Rs.)
Balance Outstanding as
on 31.03.2015 (Rs.)
Prepared By:- Checked By:-
Notes:
-
1. All unpaid expenditure such as electricity, telephone, Hiring of Vehicles, Advocates bill, Water Charges, etc. will be covered
here.
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Indian Railways
Details of amount payable to Contractors/Suppliers
Form:- CL-11
S.No. Name of
Contractors/
Suppliers
Nature of
Expenditure
Balance
Outstanding as on
31.03.2014 (Rs.)
Balance
Outstanding as on
31.03.2015 (Rs.)
Remarks
Prepared By:- Checked By:-
Notes:-
1. Any amount payable to contractor on account of any expenditure should be mentioned here. For example payable for material &
supply, works contract etc.
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Indian Railways
Details of Deposits
Form:- CL-12
S.No. Particulars Purpose of
Deposits
Balance Outstanding
as on 31.03.2014 (Rs.)
Balance Outstanding as
on 31.03.2015 (Rs.)
Prepared By:-
Notes:
1. Details of all deposits like Deposit P, Deposit W, Deposit E, Deposit PF, etc., will be provided here.
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Indian Railways
Details of Various Funds Balances
Form:- CL-13
S.No. Particulars of Fund Opening Balance
as on 01.04.2014
(Rs.)
Contribution
to during FY
2014-15
Deduction
from Funds
during FY
2014-15
Balance
Outstanding
as on
31.03.2015 (Rs.)
Remarks
1 Depreciation Reserve Fund
2 Development Fund
3 Special Railway Safety Fund
4 Others (if any, Please specify)
Prepared By:- Checked By:-
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Indian Railways
Details of Loans Payable
Form:- CL-14
S.No.
Nam
e o
f F
inan
cial
Inst
itu
tio
n/
Ban
k
Nat
ure
of
Lo
an
Wh
eth
er s
ecu
red
or
un
secu
red
Pu
rpo
se o
f L
oan
Amount
of loan
outstandi
ng as on
31.03.2014
Amount of
interest
payable as
on 31.03.2014
Amount of
penal
interest
payable (If
any) as on
31.03.2014
Amount of
loan
outstandin
g as on
31.03.2015
Amount
of interest
payable as
on
31.03.2015
Amount
of penal
interest
payable
(If any) as
on
31.03.2015
Rem
ark
s
Prepared By:- Checked By:-
Notes:
1. If any loan is taken for acquiring any assets, than it should be mentioned separately.
2. Nature of loan mean type of loan such as term loan, Cash credit etc.
3. Any amount taken from central government for creating fixed assets should also be given here.
4. If any loan is taken in foreign currency, than it should also be mentioned separately
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Indian Railways
Details of Payables to Contractors/Suppliers
Form: CL - 15
S. No. Name of Supplier/
Contractor
Receipt Order
No.
Date of Receipt
Order
Bill
No. Date of Bill
Total Amount
(Rs.)
Note:
1. Detail of any amount payable in respect of material received but bill not received or bill received but the payment is not made will be
given in this format.
2. Details of unpaid bills in respect of Fuel are to be given by concerned RDIs.
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Indian Railways
Contractual Liabilities for Works contract
Form: CL - 16
S.No.
Par
ticu
lars
of
Co
ntr
act
Wo
rk O
rder
No
.
Nam
e o
f C
on
trac
tor
Lo
cati
on
Period
of
Contract Total
Contract
Value
Measurement of work done
but bill not submitted
Bill submitted but
not Paid
Remarks
Fro
m
To
Date of
Measurement
Amount for
Bill
Date of
Bill
Amount
of Bill
Note:
1. Detail of works liability in respect of where work is done and bill is not submitted or bill is submitted but payment is not made will
be given in this format.
2. Detail in respect of unpaid bill pending on 31.03.2015/31.03.2014 whose CO6 is not made will be given here.
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Details of Earning Contract
Form: CL – 17
S.No.
Name of
Contractor Nature of Contract Location
License
Fees
Cycle of
License Fees
Period of Contract
Remarks From To
Note:
1. Detail in respect of all earning contract like Parking contract, Catering Contract, Advertisement contract, etc., is to be given in this
format.
2. If amount of contract/license fee is required to be paid in advance then same is to be mentioned in the Remarks Column.
3. Nature of Contract means type of contract, i.e., parking, catering, etc.
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Indian Railways
Details of Income Received in Advance/Way leave Charges
Form - CL-18
S. No. Particulars Amount Received
during the Year
Date of Advance
Received
Period of
Advance
Remark
Prepared By:- Checked By:-
Notes:
1. Details of any advance income received for retiring rooms, cloak rooms etc.
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Detail of pending claims
Form: CL - 19
S. No. Particulars of
Claimant
Amount of
Claim Lodge
Whether claim
accepted
Amount of
Claim accepted
Whether claim
accepted is paid Remarks
Note
1. Only detail of those claim which are unpaid as on 31.03.2014 and 31.03.2015 is required to be given irrespective of whether paid or not
2. Disputed claim will form part of notes to accounts.
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14.4 Annexure 4 – Notes to Accounts
# Accrual Element
1 Recognition of earnings from coaching- Passenger (in lieu of Cash)
2 Recognition of earnings from coaching- Other Than Passenger (Cash)
3 Recognition of earnings from Goods Traffic
4 Amount of any extraordinary item
5 Capital Commitments (Net of Advances) (NTA-1)
6 Deposit Expenditure (EMD Converted in to Income during FY 2013-14 and
2014-15) (NTA-2)
7 Disputed commercial claims (CL-21)
8 Disputed Statutory Dues (NTA-3)
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Capital Commitments
Form: NTA-1
S.No Particular of
the project
Total
estimated cost
of project
Cost incurred till
31.03.2014
Balance as
on
31.03.2014
Cost
incurred
till
31.03.2015
Balance as on
31.03.2015 Remark
Note:
1. Details of all projects exceeding Rs. 2.5crores will require to be given.
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EMD Converted into Income
Form: NTA-2
S.No. Name of contractor/Supplier Amount Remarks
Notes:
1. Detail of EMDs which is recognized as income in the FY 2013-14 and FY 2014-15 will be provided in
this format.
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Disputed Statutory Dues
Form: NTA-3
S.No. Particular of Dues Amount Remarks
Notes:
1. Detail of all disputed statutory dues, i.e., Service Tax, Excise, etc., is required to be given here.