Wednesday, May 20, 2015

STATION AS PROFIT CENTER

1. Sale of Platform Tickets – Differential Pricing:
At present, the PF tickets are issued to the public at the rate of Rs.5/- to facilitate them to enter into the station premises and to see of their friends and relatives who board / alight from the trains. This charge is uniform to all categories of stations, all over Indian Railways. By merely purchasing the PF Ticket for Rs.5/-, the public is able to relish and enjoy the various facilities available inside the Railway Premises, causing lot of inconvenience to other genuine passengers. This also leads to more congestion at stations as well as increased maintenance and cleaning work load for the Railways.
It is, therefore, now suggested that the Railways should price the PF Ticket Rates differently, depending upon the value-added service available at the stations. It is also suggested that it would be better for the Railways that if the public are buying the PF Ticket to see of their friends and relatives, the ticket issuing software should have a facility to print the Train Number in the PF ticket itself. This will help the Railways to evacuate such persons from the station premises, as soon as the Train Departs.
Further, the Platform Permit Tickets should be of two types, viz. (1) to issue to those persons who visits the Station to see of their friends / relatives; and (2) to issue to those persons who wants to utilize the various services provided at the Stations.  These types of PF Entry Tickets have to be issued for a limited time period, depending upon the purpose for which it is issued. The second category of Platform Permit Tickets should be priced at a higher premium in the form of ‘value-added’ services by the Railways. As and when the Train departs from the Terminal or stopping stations, the exit points should be checked through automated systems, whereby the validity of the PF Tickets, available with the passengers are verified.
2. Provision of various concessions to the Passengers:
As far as passenger traffic is concerned, several types of concessions are extended by the Railways to different category of persons – say, people from down-trodden to highest echelons of society.  Any concessions given to the passengers should be adequately compensated by the respective State / Central Ministries, including the various concessions for students. the passenger wishes to travel in Mail / Express Trains, for want of sufficient suburban / passenger trains, he should be allowed to travel in Mail / Express Trains on payment of additional premium charges. The provision of concessions on Season Tickets should be provided to passengers who travel in II Class only and NOT for First Class.
3.Face-lift of Station Entrance:
In stations covering business areas, temples or educational institutions or IT Sector Companies, the architectural design to the front elevation of the stations shall be provided by the sponsor companies or the respective Devastanam Boards / Temple authorities / Educational Institutions. The same face-lifting of stations can also be extended to other Corporate Companies as a part of their Corporate Social Responsibility.
4.Provision of ATM facilities at the stations:
At present, the license fee for the ATM locations are charged at a uniform rate irrespective of the vantage position, in which the same was located in a station, without considering the utility index. Further, the existence of the ATM of a particular bank not only serves as a means of advertisement for the bank but also as an automated unit attracting more customers, thereby enabling improving their business as well as reduction in staff cost.  In order to generate more revenue to the Railways, the IR should adopt differential pricing policy, while fixing the license fee for the ATM of the Banks, based on the location in which it is being permitted.
5.Model of Revenue Estimation and Generation by Thiruvananthapuram Mono Rail:
From the detailed project report of the Thiruvananthapuram Mono Rail Project, it is seen that the Revenues that is estimated to be generated, after the commission of the project, has been arrived at in the project report based on the percentage of trip distribution for each distance slab (to the entire length of the Mono Rail Project).
6.   Earnings through Commercial Publicity:
(i)         At present, the contracts are awarded by the Divisions to various Advertising Agents for display of the Advertisements / Hoardings at station premises, duly collecting the License Fee fixed. The collection of such Licence Fee are ensured by the Divisions only through payment at major stations (i.e. like MAS or MS) even though the actual display of advertisements / hoardings are at other authorized stations.
(ii)        To make a station as a Profit Centre, it would be necessary that the earnings generated through Commercial Publicity should be directly allocated to such stations to decide whether the station is profitable one.
(iii)       Similarly, other suggestions which can add to earnings maximization on account of value additional services provided by Railways are given below.
7. Fare structure for special trains
Special services justify payment of premium rates. Being a value added service a separate surcharge may become necessary along with the normal fare to facilitate revenue enhancement. This surcharge may be varied for different distance groups and classes. Demand exists to additionally charge another 100% of the extant fares, including Tatkal charges. The special fare dispensation can be applied to all festival and seasonal specials. This might require strengthening of the dynamic tariff policy, after systematic study of the market potential. Ideally, the fare rise aimed can be up to 200% in special cases of demand.
8. Distance restriction
To discourage short distance travelers and possible loss of revenue, Railways have to place suitable distance restrictions to ensure accommodation for the more needy passengers heading for distant destinations. This will also improve IR earnings.
9. Value addition in services
The value addition concept could be strengthened by adherence to punctuality and enhancement of passenger comfort levels. For example, provision of catering services including serving dinner by IRCTC may be got extended to specials. Issue of linen could also be entrusted to quality conscious contractors so as to make journey in specials more pleasant. 
10. Marketing arrangements
Dates of specials and timings shall be in place well in advance. One reason for low occupancy of special trains is the late announcement of specials. Publication of a separate Time tables for special trains could be considered for summer, winter and also for festive seasons to enable planning of the journey in advance.
11. Special trains for specific groups
As of now, some Railway specials are being run for specific groups of passengers. As passengers outside the group are not allotted accommodation in those trains, the chargeable fare shall be in accordance with the special tariff rules prescribed for special trains carrying specific groups.
12. Concession tickets and Tatkal Quota
Special Tariff dispensation for special trains may have to provide for exclusion of concession travel in such trains. The provision of tatkal quota may also have to be fixed as high as possible depending upon passenger demand.
13. Terminal costs
Fare for Specials which start and terminate at intermediate stations shall include the cost of empty run from and to the train formation station which has terminal facilities for maintenance. Therefore, the chargeable distance for those trains shall be from the Train formation station.
As running of special trains are over and above the normal services, a part of the earnings as well as centralized costs on specials shall be added to the suggested earnings / cost profile of the subject cost centre stations. As the additional cost / earnings are to be shared by several stations en-route, a suitable factor formula based on additional man hours spent and materials consumed shall be put in place. The additional earnings thus computed have to be reckoned while comparing the earnings with costs.
14. Reduction in Railways’ cost through PPP Model:
Economic growth in recent years has enhanced the relevance of railways as a critical element in global competitiveness of the Indian economy. In particular, this sector has witnessed significant interest from both domestic as well as foreign investors following the policy initiatives taken by the Government to promote Public Private Partnerships (PPPs) For building and operating world-class railway stations through PPP, a precise policy and regulatory framework has to be spelt out by the Railway Management.
15. Concept of adoption of Value Engineering[1] in Railways
For example, to give more value to the station platforms, the Railways have decided to provide Granite Floors in some of the proposed world class railway stations.  Though this will surely create a very good image of the Railways, amongst the general public, it would be better for the Railways to think differently in terms of Value Engineering, and to explore the possibilities providing the same level of value to the Station Platforms through other simpler methods of beautification of Platforms, which will help the Railways to reduce its investment costs.
16. Utilize main line Plat Forms for commercial activities:
      These platforms, instead, can be profitably used by commercially renting out the space for setting up of stalls. The shifted offices may be located either on the upstairs or on island platforms if any located nearby. Even the idea can be extended for setting up of high value sales stores like jeweler shops, silk emporiums etc especially in cultural and pilgrim centers.
17. Revamping parking facility:
The parking facilities can be provided in the complex itself in one of the floors. Even the cost of building the malls/complexes can be done on BOLT/BOT/PPP models to avoid immediate capital expenditure on the part of railways.
18. While renting out space for commercial activities in railway stations, the following may merit consideration.
(a)        Centrally located issue of tokens for availing of services/purchase of refreshments etc,
(b)        In places where shop-keepers have been allowed individual building, the details of sales may be networked so as to facilitate railways to have an idea of actual sales.
19. Centralized billing in station stalls:
it is suggested that it would be better for the Indian Railways if the charging of license fees is done as a percentage of the profit by each licensee by de-linking the calculation of license fee with reference to space provided. 
To achieve this, each licensee should be asked to generate a bill for the services provided from their computer and all such computers should be linked to the main server with Railway so that the Railways can collect from the contractors / license-holders a share on profit (or) as a percentage on the sales turnover. Alternatively, even in the existing method of fixing of license fee based on the Annual Sales Turnover, if the billing computers of the Contractors / License-holders are linked with the Railways Computers, the Railways can revise the Annual License Fee automatically, as and when there is increased sales. 
20. Reorient license fee:
Depending upon the place of business or the popular demand, the Railways can adopt fixing of license fee either as a certain percentage of market value of the space so allotted with escalation factor for each year, or as a percentage of sales turnover or with combination of both principles
The above is only a tip of the iceberg.  The Indian Railways should make concerted efforts to effectively utilize the available land spaces.  The Railways should also ensure that various assets created involving huge financial resources are put into use in time so that the huge investment cost is recouped by the Railways at the earliest.
21. Involvement of Local Bodies / Municipalities etc. in the Creation / Development of Railway Stations:
In this case, a very good example that can be cited is Velankanni extension line from Nagapattinam. Here, the Basilica of the Lady of Health, situated at Velankanni offered a part of the capital cost for building a BG line from Nagappattinam to Velankanni a sum of Rs.10 Crores, as a gesture towards joint participation. As a step forward, this model can be extended to other stations, especially, where pilgrim centers are situated. Even the day to day maintenance of the stations can be looked after by the beneficiaries of the stations, making substantial savings in the revenue expenditure.  E.g. the maintenance of Melmaruvathur railway station – a Hindu pilgrim centre receives pilgrims throughout the year- can be sponsored by the temple trust. As a matter of fact, many local organizations might be more than willing to participate in such endeavors, which have to be identified for gainful utilization by Railways.
22. Upkeep and Maintenance of Railway Stations through CSR:
The Railways can profitably make use of this Corporate Funds towards upkeep and beautification of Railway Stations, especially where corporate offices are located.  Specifically, the Railways can develop an interaction model with the corporate paving way for identification of projects and maintenance. E.g. the PARANUR Station of Chennai Division was re-modeled and beautified by Mahindra Satyam (IT Company). Even the entire cost of day-to-day maintenance of station premises is undertaken by the Company.  This had lead to huge reduction in Maintenance Expenses of the Station Premises and other related service buildings for the Railways. Similar arrangement was also made at DIVINE NAGAR Station of Trivandrum Division, which had also lead to huge reduction in the maintenance expenses of the Railways.
The Railways can further interact with the Corporate Officials and explore the feasibility of expanding this concept to other contiguous railway stations.
The concept of identification of Railway Stations for upkeep and maintenance under CSR can be extended to other Zonal Railways which can help to minimize the Railways maintenance cost.
            Proper planning and approach to ensure maximum possible commercial exploitation of the Railway Lands in and around the station premises would go a long way in augmentation of the ‘sundry’ earnings for the station and thus, the station themselves would become a profitable one
Railways are not showing much interest in the maintenance of proper record relating to non-core activities, such as Advertisement Boards, catering stalls etc.  The deviation from the concept of Responsibility Accounting in respect of Non-core business of the Railways, clearly leads to poor performance of ensuring the complete potential earnings of the Railway Assets.



[1] Historically, the concept of value engineering was evolved in the 1940s at General Electric, in the midst of World War II.  Due to the war, the purchase engineer and others sought substitutes for materials and components, since there was a chronic shortage of them.  These substitutes were often found to reduce the costs and provided equal or better performance.

WITH GRATEFUL ACKNOWLEDGEMENT TO SHRI H S MUSHATHICK IRAS FA&CAO/ICF/MAS.


SOUTHERN RAILWAY LDCE2011

LDCE2011SR
SOUTHERN RAILWAY
LDCE FOR THE POST OF AFA (GROUP ‘B’ SERVICE)

DATE: 05.01.2011                                 PAPER – I

GENERAL KNOWLEDGE AND ENGLISH, OFFICIAL LANGUAGE POLICY, GENERAL PRINCIPLES OF GOVT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE RAILWAYS

BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

TIME: 3 HOURS                                                                                                                   MAXIMUM MARKS 150
IMPORTANT
THIS PAPER CONTAINS TWO SECTIONS – A & B. BOTH SECTIONS TO HAVE TO BE ANSWERED. SECTION A CARRIES 50 MARKS AND SECTION B CARRIES 100 MARKS.
SECTION A MAXIMUM MARKS -50

Q.I Write a short note in about 10 lines Required to answer only two questions  (2 X 5 = 10)
a. permanent seat for india in UN Security Council
b. IT boom in india
c. growth of infrastructure india
d. global warming

Q.II “ 21st century is expected to be a century in which china and india will set the momendtum for growth to the rest of the world” What are your comments on this statement? Answer should be in around 150 words – (1 x 10= 10)

QIII. Expand the following abbreiviations Answer any ten                     (10 x 1 = 10)


MACP
SEBI
BOOT
CISR
IMF
NSE
ISRO
BRIC – Countries
ONGC
UNDP
ILO
TRAI



Q IV Make sentences with any five of the following and give the meaning within the brackets    (5 x 2 = 10)
Make a clean breast of
Blow the trumpet
Few and far between
Splitting hairs
Take the wind out of the sails
Bury the hatchet
Apropos
Burn the mid-night candle

Q V Fill up the blanks with suitable preposition:                                                                       (5 x 1 = 5)
The absence ------ census data is taken advantage ----- various persons ------ each state ------- boost the estimates
------persons speaking their  language.

Q VI Who are the authors of the following books? Answer any five                                        (5 x 1 = 5)
My experiences with Truth
War and peace
Das capital
Treasure island
Pride and prejudice
Discovery of india
Geetanjali

SECTION B
THIS SECTION CONTAINS TWO PARTS – A & B.
ATTEMPT FOUR QUESTIONS TAKING ANY TWO FROM EACH PART

ALL QUESTIONS CARRY EQUAL MARKS OF 25 EACH.
PART A                                                                                                             (25 x 2 = 50)
Q I. ‘The present procedure of apportionment of earnings and expenditure is not fair to southern railway with a limited lead” discuss.

Q II. Explain how the statistical compilations help in the main functions of traffic costing cell.

Q III (a) Write short notes on any two                                                                                                        (2 x 5=10)
i.         Zero based budgeting
ii.    action taken note
       iii. activity based costing
       iv. urgency certificate
        (b)  what are the salient features of the official language policy of Govt of india as per the official language Act 1963?                                                                                                                                                                              (15 x1 = 15)

Q IV (a) what are appropriation accounts?
         (b) annexure ‘J’ is the index of efficiency of accounts dept – discuss                               (18 + 7 = 25 )

PART B
Q V (a) what is the need for separate audit by representatives of the comptroller and audito general of india with ferenee to railway accounts?
        (b)  with more effective organization of internal auditing can this be dispensed with ? discuss in detail    
                                                                                                                                                                ( 12 ½  x 12½)
Q VI what steps you would suggest to control the expenditure both on establishement and non-establishment to improve the railway finances which are affected badly due to implementation of 6th pay commission award .                                                                                                                                      (25)
QVII a. what does performance budget mean?
           b. what particular reference to the railway give example from the budget classification and discuss their importance and utility                 (10 + 15)

QVIII a. write short notes on any two                                                                                                                                                                  (2x5=10)
i.      reserve bank suspense
              ii. railway convention committee
             iii. material modification
             iv. wagon turn around
          b. answer in one word                                                                                                               (15 x 1= 15)                                           
 i. the objective of maintaining suspense heads in railway accounting is to ensure a link between the systems of ----------- and -------------
 ii. on the expenditure side the revenue liability of the railways for a month are adjusted to working expenses thorugh suspense head ---------
 iii. consumption of materials obtained for specific purpose is watched through --------- account of the work.
 iv. to verify whether the financial return anticipated from a project at the estimate stage is actually realized or not railways conduct ---------- test.
 v. credit realized from surplus stock found in stock verification ----------- taken as reduction in demand (is taken as / not)
vi. any amount required to satisfy the award of arbitrators is a --------- expenditure.
 vii. the mechanism used for concurrent regulation of cash out go against cash content of budget is known as ------------.
 viii. the amount of all cheques drawn for the day is ----------------- to the head ‘ cheques and bills’.
 ix. chques and bills reconciliation is made between ------------ and -------------- and the balance represents --------------------
x. for preparation of passenger earnings budget the statistical statement used is known as -----------.
 xi. when as asset is repaired at comparatively high cost in preference to it being replaced it is known as -------------.
 xii. when stores are purchased for general purpose, the value of the material is debited to ------------ head.
 xiii. interest and maintenance charges on account of assisted sidings is classified as  -------------.
 xiv. implementation of exchequer control involves correct assessment of ---------------- and --------------- portion of sactioned annual budget.
 xv. the cost of replacement of ballast involving improved  type of ballast is charged to ------------.

                                                             &/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/             
                                                         WWWWWWWWWWWWWWWWWWWWWWWWWWWW
       
LDCE2011SR
SOUTHERN RAILWAY
LDCE FOR THE POST OF AFA (GROUP ‘B’ SERVICE)
DATE: 06.01.2011                                 PAPER – II
TIME: 3 HOURS                                                                                      MAXIMUM MARKS 150
IMPORTANT
TOTAL OF SIX QUESTIONS ARE TO BE ANSWERED.
TWO FROM PART –I TWO FROM PART – II AND TWO FROM EITHER PART –III –A OR PART –III B AS PER OPTIONS ALREADY GIVEN.
ALL QUESTIONS CARRY EQUAL MARKS OF 25 EACH.
PART I
                                                                                                                                              50 MARKS
financial justification for expenditure and traffic costing:
answer any two
Q1. There is an overwhelming view that the cross subsidy of passenger traffic by freight traffic should be given up and there should be alignment of tariff with cost. how far our traffic costing system can be rlied upon to help taking decisions in such an important area? discuss in detail.                                                
Q2 a. explain the following methods for financial appraisal of a project with assumed figures;
       i. pay back method, ii. internal rate of return, iii. net present value                                                                                                             (3x4=12)
b. you are required to justify a gauge conversion project. what factors would you take in to consideration for working out the financial implications of the proposal?     
                                                                                                                                                                           (1x3=13)
Q3 a. what is meant by ‘sensitivity analysis’ in capital budgeting ?
      b. examine the scope of sensitivity analysis in a traffic survey report for the construction of a new railway line?                                                           (10+15=25)
Q4 a. expalain the concept of joint costs in railway operation.
      b. How such costs are apportioned among various activities of the railway?                                                                                                                       (10+15=25)

PART II
MANAGEMENT ACCOUNTING                                                                             MAX MARKS 50
Q 5 a.  discuss the important accounting ratios wihc are exmployed to judge the financial performance of a company.
       b.Are these or similar ratios employedin judging the performance of railways?                                                                                           (10+15=25)
Q 6 The ratios relating to the activities of National Traders Limited areas follows:
        debtors’ velocity – 3 months, stock velocity – 8 months, creditors velocity – 2 months, gross profit ration 25 %
        gross profit for the current year ended 31st Dec amounts to Rs 4 lakhs. closing stock of the year is Rs 10000/ above the opening stock. bills recoverable amount to Rs 25000/- and Bills payable to Rs 10000/-. find out the (a’ sales (b) sundry debtors (c) closing stock and (d) sundry creditors
Q 7 a. write in detail about the applications of breakeven analysis
       b. explain the difference between trofit centre and cost centre
       c. explain the difference between standard costing and job costing                                                                                                                                                      (13+6+6=25
Q 8. ABC Limited manufactures and sells 4 type of products under the brand names A
operating costs are variable cost as percentage of selling price. Product A – 60%, Product B – 68%, Product C- 80% and Product D- 40%. calculate the break even ppint for the products on the overall basis.
Q9 a. what do you understand by ‘life cycle costing’?
      b. what are the important areas where it can be employed?
      c. How is it an important over the normal costing system?                                                                                          (9+8+8=25)
PART III – A 
TRAFFIC ACCOUNTS, STATISTICS and ESTABLISHMENT
answer any two                                                                                                                                    (2 x 25= 50)
Q10 Checks in Traffic Accounts Office can not be final and have to be supplemented by checks by TIAs. discuss this with reference to atleast two  returns / documents received in traffic accounts office.
Q11. Write short notes on any four                                                                                                                  (4 x 6 ¼= 25)
a.        terminal charges, b. reconstruction of a delivery book of a station destroyed in fire c. engine performance statistics d. running allowance e. specific fuel consumption f. leave not due g. next below rule
Q12.  How far the present method of compilation and presentation of statistical date in railway help in effective management decision and contral on Indian railways?               
Q13 a. what are the different kinds of  leave admissible under the railway rules?
b.       what are the limits upto which leave can be accumulated and availed at a time?
c.        to what extent one can avail leave including extraordinary leave?                                                                                                             (10+7 ½ + 7 ½=25)
PART III (B)
Workshop And Stores Accounts And General Expenditure                                                       
answer an two questions                                                                                                    (2 x 25=50)                                            
Q 14. Explain the merits and demerits of the existing stock verification system  and give concrete suggestion for reater efficacy
Q15.a. what are the constituent elements of workshop manufacture suspense?
        b. what are the objectives of a job costing system as followed in a railway workshop
        c. how the above system is used to arrive at accurate costing figures?                                                                                                               (9+8+8=25)
Q16. write short  notes on any four     (4 x 6 ¼ = 25)
a.        risk purchase b. proforma on cost c. workshop general register d. CLW pattern of incentive e. rate contract f. price ledger g. under/over charges
Q17 a. examine the significance of drawing up completion reports for works
       b.what are the problems in finalizing the completion report within a reasonable period?

       c. what steps should be taken to expedite the process?                                                                                                        (9+8+8=25)

SOUTHERN RAILWAY ACCOUNTS LDCE 2012

LDCE FOR THE POST OF AFA (30 % GROUP ‘B’ SERVICE)

DATE: 22.05.2012                                 PAPER – I

GENERAL KNOWLEDGE AND ENGLISH, OFFICIAL LANGUAGE POLICY, GENERAL PRINCIPLES OF GOVT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE RAILWAYS
BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

TIME: 3 HOURS                                                                                                                   MAXIMUM MARKS 150

IMPORTANT

THIS PAPER CONTAINS TWO SECTIONS – A & B. BOTH SECTIONS TO HAVE TO BE ANSWERED. SECTION A CARRIES 50 MARKS AND SECTION B CARRIES 100 MARKS.
SECTION A MAXIMUM MARKS -50

SECTION A                                                                                                                         
Q 1. write short notes on any four                                                                                                    (4 x 6 ¼ = 25)
a.        general anti avoidance rules (GAAR) as proposed in the Budget 2012-13
b.       slide of Indian rupee against US Dollar
c.        growth trends in India’s GDP during current year
d.       Basel III norms announced by RBI on banking industry
e.        dis-investment of Public Sector shares
f.         role of RBI in promoting economic development
g.       economic crisis in Europe
h.       role of TRAI with reference to development of telecom
Q II In each of the following questions out of four alternatives, choose the one which can  be substituted for the given words/sentence                              (5 x1= 5)
a.        An imaginary name assumed by an author for disguise
i. homonym. ii. nickname iii. pen name iv. pseudonym
b.       A place for sick people who need long periods of treatment or rest.
i.asylum, ii. sanatorium iii. clinic, iv. hospital
  c.        something that is likely to break apart easily
             i. harsh ii. brittle iii. thin iv. breakable
  d.        a person who eats too much
              i. omnivore ii. sensualist iii. glutton iv. reveler
 e.         belonging to the same country and having same interest and feelings
              i. native ii. Compatriot iii. Patriot iv. Comrade
Q III In each of the following questions out of the given alternatives choose the one, which is nearest meaning to the underlined part of the sentence                (5 x 1 = 5)
a.        The intrepid mountaineers who scaled the peak in winter should be congratulated.
i. bold, ii. courageous iii. vigorous iv. brave
     b.        The ubiquity of God cannot be questioned
                i. greatness ii. mystery  iii. omnipresence  iv. existence
     c.        the old man shows no sign of infirmity even though the is eighty years old
                i. indolence ii. fickleness iii. feebleness iv. lack of firmness
     d.        Of all the indignities man has suffered at the hands of man, slavery is the most degrading
                i. insult ii. atrocities iii. evils iv. dangers
     e.        the rapacious plunderers did not spare even the people living in the sums
                i. war like ii. barbarous  iii. avaricious iv. nomadic
Q IV In each of the following questions out of four alternatives choose the one which can be substituted for the given words/sentence (5x1=5)
a.        a process involving too much official formality
   i. Nepotism ii. Diplomacy  iii. Red-tapism iv. Bureaucracy
   b.       a formal written charge against a person for some crime or offence
             i. accusation ii. indictment iii. allegation iv. acrimony   
  c.        a person who is indifferent to both pleasures and pain.
             i. saint ii. asectic iii. stoic iv hermit
   d.       the line which a plough cuts in the ground
             i. vale iii. Trench  iii. Furrow iv. Trough
   e.       giving undue favours to one’s own kith and kin
            i. favouritism ii. nepotism iii. corruption iv. worldiness

Q V     Read the passage given below carefully. at the end of passage five questions along with various options for answers are given. Select the best option as the answer.
              (5  x 2=10)
            In most western countries, it is required that every young man, when his education is complete, shall give three or four years to military service. he goes in to barracks, is regimented and drilled, makes a unit in the standing army and passes out usually when his term is ended, an efficient soldier, to remain for the rest of his life ready at any moment to join in the armed defense  of his country.      
a.        in the passage the author opines that
i. military training is more important than general education
ii.military  training should precede college education since it builds up one’s  mental and physical abilities
iii.military training is as important as general training
iv.military training must be included in the curricula of schools and colleges
b.       military training is as important as mental training because
i.otherwise youngmen are useless
ii.it isngood that every scholar should also be an efficient soldier and available for the coutry’s defence
iii.one gets a chance to live in barracks
iv.war has become a daily affair
c.        every young man has to undergo military training  because he can
i.get a job after such training
ii.supplement his general education according to his wish
iii.join the army whenever his country needs to be defended in war
iv.learn and practice discipline
d.       in eastern countries like india, military training of students should be made compulsory
i.to fight anti-social elements
ii.to make youth serve the national during times of war and peace
iii.it can soleve the unemployment problem by providing more jobs
iv.to repress communal riots
e.        the author, wrting in the early part of 20th century, does not seem to talk about the need of military training for women because
i.women  education was a new thing then
ii.author thinks women are not physically strong enough to undergo military training
iii.women taking part in military service is a recent phenomenon
iv.according to author women should remain indoors

SECTION B
This section contains two parts (A) and (B). attempt four questions taking any two from each part. all questions carry equal marks of 25 each.
PART A                                                               25 X2= 50

Books and Budget Including Traffic Book
Q VI a. how is the earning budget of a railway formulated?
b.       what are the usefulness of various statistical data in this exercise?  
                                                                             10  + 15 = 25
Q VII write short notes on any four                                                                                                                                            
                                                                                                                                                                4 x 6 ¼ = 25
a.        traffic book Part B, b. cheques and bills reconciliation c. demands payable d. august review of budget d. over capitalization f. vote on account
Q VIII a. outline the main features and underlying principles of Zero based budgeting
           b.discuss the feasibility and limitations in adopting zero based budgeting in Indian railway                                                10+15=25

Q X. what are the constraints faced by Indian railways in recent years in balancing the annual budget? this may be discussed under the following heads.        25
a.        railways’ inability to pass on increase in cost to the users
b.       reduction in general budgetary support
c.        increase in input cost on account of salary wages and materials
d.       impact of al three factors on railway capital budget, fund balances, dividend liability
discussion should be supported by facts and figures

PART B                                              25 X 2 = 50
Q X write short notes answer any two                                                                                                               2 x 5= 10
i.a. railway’safety works, b. uneconomic branch lines c. single accounts current d. transfers without financial adjustment
ii.explain the idea behind having a Rajbasha. what are the salient features of the Official language Policy of GOI as per the Official Language Act 1963   (15)

Q XI a. what are the different “funds” maintained by Indian railway?
b.       briefly describe the nature of each of the funds and the manner in which they are operated.
c.        how their operation will have to be rationalized if it is proposed to run railways as a commercial undertaking                     6+9+10=25

Q XII a. describe the format in which the financial results and balance sheets of Indian railways are presented?
          b.how does the system followed by Indian railways differ from that of Public Limited Companies?          
                                                                                                                                                                      7 + 11 = 18
          c. Answer in one word any seven only                                                                                              7 x 1 = 7
  1. the accounts of the railway presented in such a form as to facilitate review of the railway as commercial undertaking is known as ------------------------
  2.  the account which exhibits the entire expenditure of a capital nature is known as -------------------------
  3. debit side of the general cash book represent -----------------------      
  4. all items of upaid wages will be credited to ---------------------------
  5. the earnings accrued at stations for the realization of which the home railway is responsible are consolidated in -----------------------
 6. errors noticed during verification of posting in tgraffic book Part A are corrected through ------------------------
 7. the amount of all cheques drawn for the days is credited to the head --------------------------
 8. all transfer transactions between railways are adjusted thorguh -----------------------
  9. transactions between the railway ministry and other ministries settled through central accounts section of Reserve Bank Of India are known as ---------------------------

Q XIII a. What are the specific duties of the director of audit with regard to the audit of the annual accounts of the zonal railway?                  18 M
           b.answer by filing the blanks Any seven only
           i. the from in which the proposals of Govt in respect of sums required to meet expenditure from Consolidated Fund of India is subtted to Lok Sabha is -----------------
           ii. ----------------- as passed by parliament as assented by the president form the basis for budgetary allocations to railways
           iii. the suspense head operated to watch book adjustments of inward transactions from the books of the Govt dept is ------------
           iv. the suspense head operated to watch payments to firms from whom materials are received and taken inot stock before payments are made is ------------
           v. unpaid items other than unpaid wages of railway staff are allowed to remain in the register deposits for a period of -------------years.
           vi. the suspense head used to book inter departmental transactions awaiting acceptance is -----------------.
           vii. railway budgeting is done on ------------------ (gross/net ) basis
           viii. demand for excess grant presented to parliament is based on recommendation of ----------------
           ix. exchequer control is a mechanism to ensure that --------------------- portion of budgetary allocation is not exceeded. 

LDCE2012SR
SOUTHERN RAILWAY
LDCE FOR THE POST OF AFA (GROUP ‘B’ SERVICE)

DATE: 23.05.2012                                 PAPER – II

TIME: 3 HOURS                                                                                                                              MAXIMUM MARKS 150

IMPORTANT
TOTAL OF SIX QUESTIONS ARE TO BE ANSWERED.
TWO FROM PART –I TWO FROM PART – II AND TWO FROM EITHER PART –III –A OR PART –III B AS PER OPTIONS ALREADY GIVEN.
ALL QUESTIONS CARRY EQUAL MARKS OF 25 EACH.

PART I
                                                                                                                                                                                    50 MARKS
FINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING:
Answer any two
Q I. how  far the present traffic costing methodology is effective in determining realistically the financial viability of introduction of New trains and augmentation of existing services?                                                                   25 M

Q II a. with regard to goods traffic what is the traffic costing information available?
        b.how do they help in investment decisions ?                                                                          12 ½ + 12 ½ = 25 M

QIII a. Due to constraints of resources, railways need to tap alternative sources for capital expenditure. in this regard, discuss the schemes like BOLT, BOOT and other modes of PPP in furthering this purpose.
        b.What are the constraints faced by the railways in attracting such achievement?              18 + 7 = 25 Marks

Q IV Write short notes  ( any four)
a.        socially viable projects, b. apportionemtnt of joint costs, c. DCF Technique, d. productivity test, e. make or buy decision, f. two packet system of tendering, g. financial justification for reconditioning a machine.
                                                                                                                                                   4 X 6 ¼ = 25 Marks
PART II
MANAGEMENT ACCOUNTING
Answer any two questions
                                                                                                                                                2 x 25 = 50 Marks
Q V (a) What do you understand by the terms Budget and Budgetary control?
       (b) What are the advantages of Budgetary Control?
       (c) Calculate the breakeven sales from the following data for a company producing three products.
                 Product
Sales Rs
Variable Cost Rs
A
10000
6000
B
5000
2500
C
5000
2000
Total
20000
10500
               total fixed cost amount to Rs 5700/-                                                                                   9 + 9 + 7 = 25 Marks
Q VI (a) What are the factors that should be considred setting up  i. material price standard, ii. material usage standard, iii.  labour time standard
         (b) ABC limited has prepared the following cost estimates per unit for the manufacture of a sub-component hitherto purchased from an outside supplier at Rs 32/- per unit; ordering inspection cost are estimated at Rs2/- per unit. the (company) firm has spare capacity and no extra cost will be required to be incurred. the annual requirement is 10,000 units.
         Direct material                                                       = Rs 10/-
         Direct labour                                                         = Rs 14/-
         Variable overheads                                        = Rs 6/-
         Fixed factory overheads                                = Rs 6/-
Should the component be made or purchased from outside?                                                       15 + 10 = 25 Marks

Q VII (a) Alpha Manufacturing company has drawn up the following profit and loss account for the year ended 31st March
to opening stock
26000
by sales
160000
to purchases
80000
by closing stock
38000
to wages
24000


to  manufacturing expenses
16000


to gross profit
52000


c/d
198000

198000




to selling and distribution expenses
4000
by gross profit b/d
52000
to administrative expenses
22800
by compensation for
acquisition of land
4800
to value of furniture lost by fire
800


to general expenses
1200


to net profit
2800



56800

56800
calculate the operating ratio and the ratio of operating net profit to net sales.
(b) “Fixed costs are really variable. The more you produce the less they become” discuss.  18 + 7 = 25 Marks

Q VIII (a) A firm has made credit sales of Rs 240000/- during the year. The outstanding amount of debit at the beginning and at the end of the year respectively was Rs 27500/- and Rs 32500/- Determine the debtors turn over ratio.                                                                                                                                                       
(b) what is the pay back period?
(c ) Also discuss the utility of the pay back period in detetmining the internal rate of return.         8 +6+11=25 Marks
Part III (A)
Answer any two                                                                                                                                   2 x 25 = 50 Marks
Q IX Bring out the brief checks exercised in the Traffic Accounts Office in respect of the following
a. Collected tickets, b. concession vouchers, c. paid on charges, d. siding statements            4 x 6 ¼ = 25 Marks

Q X (a) How far the present method of compilation and presentation of statistical data help management decision and control in Indian Railways?
  (b) What is specific fuel consumption?
 (C ) How is it computed for diesel and electric traction?
                                                            12+5+8=25 Marks    
Q XI (a) What are the  Rules and Conditions relating to calculation and Payment of Foreign Service Contribution in respect of employees going on deputation?
         (b) What are the fundamental rules relating to fixation of pay?                      12 ½ + 12 ½ = 25 Marks
Q XII Write short notes on any four:
    a. workman’s compensation act, b. operating ratio, c. annual statistical statement No40, d. pension fund, d. apportioned earnings, and f. accounts office debits
                                                                                                                                                4 x 6 ½ = 25 Marks
PART III (B)
                WORKSHOP AND STORES ACCOUNTS AND GENERAL EXPENDITURE
Answer any two questions
Q XIII (a) Explain the significance of Purchase Grant and Closing Balance of Stores, in Stores Budgeting and describe the measures taken for regulating both
             (b) Describe the procedure followed in accounting for stores received in a workshop form the stores depot, from the time they are received in the shop to the time they are finally adjusted against the jobs in which they have been consumed.                                                                                                                               12 ½ + 12 ½ = 25 Marks
Q IV Write short notes on any four:
     a. transfer pricing, b. fall clause, c. risk tender with reference to stores contract, d. variation in quantities in works contracts. Marginal costing, e. CLW pattern of incentive scheme
                                                                                                                                                                4 x 6 ½ = 25 Marks

Q XV “The workshop outturn statements truly and effectively reflect shop activity and  efficiency of workshop accounts office”. Discuss with particular reference to checks to be exercised in the preparation of various out turn      avoids outturn statements..                                                                              
                                                                                                                                                                25 Marks               

Q  XVI  (a) What is stock adjustment account?
               (b) What are the various items adjusted through this account?
              ( c) Can inventory turnover ratio be considered as reliable index of inventory management?