LDCE QUESTION PAPERS YEAR WISE
MAY 2003
PAPER I
PART I GENERAL KNOWLEDGE & ENGLISH
1. Expand the following abbreviations ( 5 marks half marks each)
a) BCCI
b) KRCL
c) RITES
d) IRSSE
e) GNP
f) MFN
g) CCRS
h) FEMA
i) CD-ROM
j) IVRS
2. Name the following (5 marks each half marks each)
a) First Indian woman to win an Olympic medal
b) General manager, southern railway
c) Chairman railway board
d) Mixed doubles’ champions of Australian open 2003
e) Venue of Olympics 2004
f) Currency of Bangladesh
g) Firs president of India
h) Batsman to score the fastest century in cricket world cup
i) The author of the column “with malice towards one and all”
j) Secretary of state USA
3. In which cities would you find the following ( 5 marks half marks each)
a) Leaning Tower
b) Statue Of Liberty
c) Lotus Temple
d) Hutatma Chowk
e) Louvers Museum
f) ‘Petronas’ Towers
g) Gate Way Of India
h) Popes’ Residence
i) Vidhan Soudha
j) Wimbledon
4. Match the following ( 3 marks half mark each)
1. rugby a. castle
2. golf b. pole position
3. motor racing c. deuce
4. chess d. little slam
5. tennis e. eagle
6. contract bridge f. touch down
5. Name the authors of the following books ( 2 marks half mark each)
a) Interpreter Of Maladies
b) Discovery Of India
c) A Suitable Boy
d) Madhushala
6. What are the following ( 3 marks half mark each)
a) East coast railway head quarters
b) Rail coach factory
c) Diesel component works
d) Garden reach
e) Baroda house
f) IRIATT
ENGLISH LANGUAGE
8. USE THE FOLLOWING to bring out the difference in meaning ( 5 marks 1 mark each)
a) Bear and bare
b) Lose and loose
c) Break and brake
d) Severe and persevere
e) Genes and jeans
9. use the following in your own sentences ( 10 marks 1 mark each)
a) Suo moto
b) Fight shy of
c) De facto
d) Let sleeping dogs lie
e) Lingua franca
f) Take to heart
g) Ad infinitum
h) At the eleventh hour
i) Par excellence
j) Laughing stock
10. Write a para of not more than SIX sentences on ANY TWO of the following (10 marks 5 marks each)
a) Child is the father of the man
b) There is many a slip between the cup and the lip
c) Brevity is the soul of wit
PART II GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING (50 marks)
11. Write briefly about the various funds now in operation in Indian railways (10)
12. Answer ANY TWO of the following (20 each)
a) Trace briefly the various stages from survey to completion report of a new line
b) Write short notes on ANY TWO of the following
1. appropriation accounts
2. misc advance revenue
3. productivity test
c) Distinguish between ANY TWO of the following
1. Operating ratio and PEI
2. TC and JV
3. Sundry earnings and miscellaneous earnings
PART III BOOKS & BUDGET (INCLUDING TRAFFIC BOOK) (50 MARKS)
13. What steps would you suggest to reduce cash handling by railway (10)
14. Answer ANY TWO of the following
a) How are the earnings apportioned between zonal railways? Is apportionment necessary?
b) Distinguish between approximate and actual account current. Is it necessary to prepare both?
c) What are the various components of traffic suspense? How can we control each of them?
LDCE QUESTION PAPERS YEAR WISE 2003
PAPER II
SIX QUESTIONS ARE TO ANSWERED (TWO FROM PART I TWO FROM PART II AND TWO FROM EITHER PART III A OR PART III B) (each question carries 25 marks)
Part I FINANCIAL JUSTIFICATION AND TRAFFIC COSTING ( 50 MARKS)
1. How are Suburban cost worked out in the railway? Is the methodology adequate?
2. write short notes on ANY THREE of the following
a. urgency certificate
b. debits under demand no 9
c. material modification
d. wagon turn round
3. if the route between Madurai and Tutucorin is to electrified how will you work out the justification? What are the major data required?
PART II MANAGEMENT ACCOUNTING (50 MARKS)
4. What are the various sources of non-traditional earnings that have been and can be exploited by railways? Comment on the success or failure of the efforts to southern railway in this area in 2001-02 and 2002-03
5. What is ratio analysis? Discuss any two major ratios used in railways vis-à-vis companies
6. Discuss the use of computers in railway financial management. What are the areas that should be covered in computerised financial management information system?
ANSWER ANY TWO out of questions 7, 8 and 9 or ANY TWO out of questions 0,11 and 12 (25 each)
PART III A TRAFFIC ACCOUNTS STATISTICS AND ESTABLISHEMENT ( 50 MARKS)
7. Introduction of PRS, ARTS machines and other modernisations hve led to newer types of frauds. What steps can be taken by traffic accounts office and TIAs to detect these frauds? Illustrate your answer with at least two types of frauds
8. Write shot notes on ANT THREE of the following
a) LPC
b) Combined/joint train report
c) NTKM
d) Classification of commodities
e) Leave not due
9. How would you check the following proposals?
a. station to station rate for moving sponge iron
b. proposal under volume discount scheme
c. opening of a halt station
PART III B WORKSHOP &STORES AND GENERAL EXPENDITURE (50 marks)
10 a. explain the concept of part estimates
b. is there any need for accounts office to vet tender schedule in works tenders? Write in detail bringing out Board’s orders on the subject
11. Write short notes on ANY THREE of the following
a) Turnover ratio
b) Letter of credit
c) Basic schedule of rates
d) Material at site accounts
12 how are POH debits settled between two zonal railways? What are the reasons or wide variation in POH costs in different workshops and what can be done to bring about uniformity?
&/&/&/
WWW
Tuesday, October 6, 2009
LDCE QUESTIONS 2001
LDCE QUESTION PAPERS YEAR WISE
14th June 2001
PAPER I
Important; this paper contains two sections A and B. both sections have to be answere. Sectin A carries 50 marks and Section B carries 100 marks
Section A (max marks 50)
GK I Expand the following abbreviations
(i) CBEC (ii) ICICI (iii) IRCON (iv) PAC (v) LIBOR (vi) SAIL (vii) TRAI (viii) BOLT
(ix) UNESCO (x) SEBI 5 marks
GK II write short notes onANY FIVE
I. BALCO disinvestment
II. Dabhol power project
III. External commercial borrowing
IV. Moody’s rating
V. Narmada river valley project
VI. Green house effect
VII. Public distribution system 10 marks
GK III. write short notes in not more than 200 words on ANY ONE of the following
i. Official language policy
ii. Renewable energy sources
iii. Information technology 10 marks
GK 4 name the authors of the following books
i. God of small things
ii. Discovery of India
iii. Malgudi days
iv. Das capital
v. War and peace 5 marks
GK 5 name the sports associated with the following
i. Ranji trophy
ii. Durand cup
iii. Rangaswamy cup
iv. Thomas cup
v. Wimbledon 5 marks
GK 6 Use the following pairs of words in sentences of your own
i. Poll – pole
ii. Adept – adapt
iii. Excepted – expected
iv. Opposite – apposite
v. Cite – site 10 marks
GK 7 Fill up the blanks with suitable preposition
The cabinet __________ Wednesday decided _________ form a sub-committee _____ draw ______ a white paper __________ the financial position _____ the state. The Government wanted ________ place the factual position _____ the people ______ the white paper 5 marks
SECTION B max marks 100
This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks
BA 1. Indian railways are required to fund not only commercially viable projects but also non-viable but socially relevant projects over the few decades. The massive investment requirements of the shelf of pending projects need innovative measures for funding. Outline some of the specific initiates taken by the railways in this direction and suggest further measures to over come the problem of resource crunch.
BA 2 how is parliamentary control over railway’s finances exercised? What is the role of various parliamentary committees in this process?
BA 3 writes short notes on ANY FOUR
i. Ways And Means Advances
ii. Rakesh Mohan Committee
iii. Railway Safety Fund
iv. Action Taken Note’
v. Commercial Exploitation Of Land
vi. Amortization
BA 4 what is zero based budgeting. What are the steps taken by the railways in the last five years to adopt this system?
BA 5 what is the role of statutory audit on the Indian railways? Is it possible to dispense with the organization if the internal auditing system is strengthened?
PART B
BB 1 what is appropriate accounts? Annexure J is the index of efficiency of accounts department. Discuss
BB2 there is urgent need to simplify the procedure and speed up the realization and accountal of traffic earnings. Discuss duly explaining the present system in detail
BB3 railways operate a large number of suspense heads. Discuss the need the context and the method of operation of any THREE of them selecting one each from earnings, revenue and expenditure and works expenditure
BB4 the delay in making available the acutals and the wide variation between the approximate and actual render the present system of closing of accounts ineffective and liable for criticism. Give concrete suggestions to make tangible improvements in this area
BB5 physical performance and financial results do not go in tandem so far as earnings are concerned. What are the factors responsible for such a divergence?
&/&/&/
WWW
LDCE QUESTION PAPERS YEAR WISE
15th June 2001
PAPER II
This paper contains two sections A and B. both sections have to be answered .Section A is compulsory for all candidates and carries maximum of 50 marks. Section B which carries maximum of 100 marks has two parts A and B. candidates should attempt either of the two parts depending on their optional subject
SECTION A (max marks 50)
A1 There is an overwhelming view that cross-subsidisation of passenger fare by freight rate should be given up and there should be alignment of tariff with the costs. How far our traffic costing system can be relied upon to take decisions in such important aspect? Do you have any suggestions to make?
A2. What are financial ratios? Enumerate any three of them and examine their applicability to railway working
A3. With the computerisation of accounts is should be possible to determine the cost activity wise. Do you agree? What further measures are required to have meaningful data?
A4. What is the meaning of life cycle costing? What are the areas where it can be employed? Is it an improvement over the normal costing system?
Or
What is marginal costing? Explain the scope for adopting this concept for maximising the intensity of use of railway assets
SECTION B
Important: This section contains two parts A and B. Either part A or part B should be attempted by candidates depending on their choice of optional
Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)
Answer any three questions. All questions carry equal marks
BA 1. How effective is the internal check mechanism of passenger reservations (PRS) and Advanced Railway Ticketing System (ARTS)? Is the system fool proof and free from frauds?
BA2. The magnitude of outstanding under Traffic Suspense reflects the efficiency of traffic accounts office. Discuss
BA3. (i) What are the important operating statistics relating to goods operations?
(ii) What is Specific Fuel Consumption? How it is computed for diesel and electric traction?
BA 4 writes short notes on:
I. Workmen’s compensation
II. Transport allowance
III. Annual statistical statement No 40
IV. Operating ratio
V. Pension fund
BA 5. ‘Recommendation of V pay commission has thrown railway finances out of gear do you agree?
Or
Elaborate the procedures of internal check of establishment claims in a computerised environment as distinct from manual bills
PART B (GENERAL EXPENDITURE ACCOUNTS, WORKSHOP, AND STORES ACCOUNTS)
Answer any THREE questions. All questions carry equal marks
BB1. What are the latest instructions from Railway Board regarding (1) award of contracts n single tender basis for execution of works and (2) post tender negotiation?
BB2. Write short notes on:
(i) risk purchase
(ii) profroma on cost
(iii) “make” or “buy” decision
(iv) completion reports
(v) variation in quantities in a works contract
BB3. “The workshop out-turn statements truly and effectively reflect shop activities and efficiency of workshops accounts office”. Discuss with particular reference to checks to be exercised in the preparation of statement
BB4. How far stock verification can contribute to better material management? What improvement, if any, would you suggest to make it more effective?
BB5. Explain the linkage between stores, WMS and Revenue Budget
BB6. There has been a spurt in the cases referred to for arbitration on this railway. How far is this attributable to the recent changes in the arbitration act? Are there deficiencies in contract formulation and management? Suggest remedies.
14th June 2001
PAPER I
Important; this paper contains two sections A and B. both sections have to be answere. Sectin A carries 50 marks and Section B carries 100 marks
Section A (max marks 50)
GK I Expand the following abbreviations
(i) CBEC (ii) ICICI (iii) IRCON (iv) PAC (v) LIBOR (vi) SAIL (vii) TRAI (viii) BOLT
(ix) UNESCO (x) SEBI 5 marks
GK II write short notes onANY FIVE
I. BALCO disinvestment
II. Dabhol power project
III. External commercial borrowing
IV. Moody’s rating
V. Narmada river valley project
VI. Green house effect
VII. Public distribution system 10 marks
GK III. write short notes in not more than 200 words on ANY ONE of the following
i. Official language policy
ii. Renewable energy sources
iii. Information technology 10 marks
GK 4 name the authors of the following books
i. God of small things
ii. Discovery of India
iii. Malgudi days
iv. Das capital
v. War and peace 5 marks
GK 5 name the sports associated with the following
i. Ranji trophy
ii. Durand cup
iii. Rangaswamy cup
iv. Thomas cup
v. Wimbledon 5 marks
GK 6 Use the following pairs of words in sentences of your own
i. Poll – pole
ii. Adept – adapt
iii. Excepted – expected
iv. Opposite – apposite
v. Cite – site 10 marks
GK 7 Fill up the blanks with suitable preposition
The cabinet __________ Wednesday decided _________ form a sub-committee _____ draw ______ a white paper __________ the financial position _____ the state. The Government wanted ________ place the factual position _____ the people ______ the white paper 5 marks
SECTION B max marks 100
This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks
BA 1. Indian railways are required to fund not only commercially viable projects but also non-viable but socially relevant projects over the few decades. The massive investment requirements of the shelf of pending projects need innovative measures for funding. Outline some of the specific initiates taken by the railways in this direction and suggest further measures to over come the problem of resource crunch.
BA 2 how is parliamentary control over railway’s finances exercised? What is the role of various parliamentary committees in this process?
BA 3 writes short notes on ANY FOUR
i. Ways And Means Advances
ii. Rakesh Mohan Committee
iii. Railway Safety Fund
iv. Action Taken Note’
v. Commercial Exploitation Of Land
vi. Amortization
BA 4 what is zero based budgeting. What are the steps taken by the railways in the last five years to adopt this system?
BA 5 what is the role of statutory audit on the Indian railways? Is it possible to dispense with the organization if the internal auditing system is strengthened?
PART B
BB 1 what is appropriate accounts? Annexure J is the index of efficiency of accounts department. Discuss
BB2 there is urgent need to simplify the procedure and speed up the realization and accountal of traffic earnings. Discuss duly explaining the present system in detail
BB3 railways operate a large number of suspense heads. Discuss the need the context and the method of operation of any THREE of them selecting one each from earnings, revenue and expenditure and works expenditure
BB4 the delay in making available the acutals and the wide variation between the approximate and actual render the present system of closing of accounts ineffective and liable for criticism. Give concrete suggestions to make tangible improvements in this area
BB5 physical performance and financial results do not go in tandem so far as earnings are concerned. What are the factors responsible for such a divergence?
&/&/&/
WWW
LDCE QUESTION PAPERS YEAR WISE
15th June 2001
PAPER II
This paper contains two sections A and B. both sections have to be answered .Section A is compulsory for all candidates and carries maximum of 50 marks. Section B which carries maximum of 100 marks has two parts A and B. candidates should attempt either of the two parts depending on their optional subject
SECTION A (max marks 50)
A1 There is an overwhelming view that cross-subsidisation of passenger fare by freight rate should be given up and there should be alignment of tariff with the costs. How far our traffic costing system can be relied upon to take decisions in such important aspect? Do you have any suggestions to make?
A2. What are financial ratios? Enumerate any three of them and examine their applicability to railway working
A3. With the computerisation of accounts is should be possible to determine the cost activity wise. Do you agree? What further measures are required to have meaningful data?
A4. What is the meaning of life cycle costing? What are the areas where it can be employed? Is it an improvement over the normal costing system?
Or
What is marginal costing? Explain the scope for adopting this concept for maximising the intensity of use of railway assets
SECTION B
Important: This section contains two parts A and B. Either part A or part B should be attempted by candidates depending on their choice of optional
Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)
Answer any three questions. All questions carry equal marks
BA 1. How effective is the internal check mechanism of passenger reservations (PRS) and Advanced Railway Ticketing System (ARTS)? Is the system fool proof and free from frauds?
BA2. The magnitude of outstanding under Traffic Suspense reflects the efficiency of traffic accounts office. Discuss
BA3. (i) What are the important operating statistics relating to goods operations?
(ii) What is Specific Fuel Consumption? How it is computed for diesel and electric traction?
BA 4 writes short notes on:
I. Workmen’s compensation
II. Transport allowance
III. Annual statistical statement No 40
IV. Operating ratio
V. Pension fund
BA 5. ‘Recommendation of V pay commission has thrown railway finances out of gear do you agree?
Or
Elaborate the procedures of internal check of establishment claims in a computerised environment as distinct from manual bills
PART B (GENERAL EXPENDITURE ACCOUNTS, WORKSHOP, AND STORES ACCOUNTS)
Answer any THREE questions. All questions carry equal marks
BB1. What are the latest instructions from Railway Board regarding (1) award of contracts n single tender basis for execution of works and (2) post tender negotiation?
BB2. Write short notes on:
(i) risk purchase
(ii) profroma on cost
(iii) “make” or “buy” decision
(iv) completion reports
(v) variation in quantities in a works contract
BB3. “The workshop out-turn statements truly and effectively reflect shop activities and efficiency of workshops accounts office”. Discuss with particular reference to checks to be exercised in the preparation of statement
BB4. How far stock verification can contribute to better material management? What improvement, if any, would you suggest to make it more effective?
BB5. Explain the linkage between stores, WMS and Revenue Budget
BB6. There has been a spurt in the cases referred to for arbitration on this railway. How far is this attributable to the recent changes in the arbitration act? Are there deficiencies in contract formulation and management? Suggest remedies.
Sunday, October 4, 2009
LDCE QUESTIONS 1996
LDCE QUESTION PAPERS
6th September 1996
PAPER I
GENERAL KNOWLEDGE AND ENGLISH; GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND BUDGET INCLUDING TRAFFIC BOOK
Important: this paper contains two sections A and B. both the sections have to be answered. Section A carries 50 maximum, and section B carries 100 marks
SECTION A
GK1. Expand the abbreviations in any five 5 marks
a) CTBT
b) ICRISAT
c) NABARD
d) ECAFE
e) PSLV
f) WTO
g) SEBI
h) MAT
i) ILO
j) BIFR
GK2. (I) Write short notes on any five 10 marks
a) Alamatti Dam
b) CHIPKO Movement
c) Medha Patkar
d) Damodhar Valley Corporation
e) Vote On Account
f) Atlanta
g) Solar Energy
Or
(ii) Write the main features of the official language Act 1963 (Act 19 of 1963)
GK3. Write a note in not more than 200 words on any one of the following 15 marks
a) Public sector disinvestment programme
b) Amarnath yatra
c) SAARC
GK 4. Fill up the blanks with suitable preposition 5 marks
Coming back _______ the Eastern Railway, operations were _____ its peak efficiency and ____ February and March 1969, _____ loading figures ____ coal and general goods set new records. ___ far ____ general goods loading is concerned the figures obtained _____ those months have never been reached subsequently.
GK 5. Name the authors of the following books 5 marks
a) Discovery of India
b) My experiments with truth
c) Passage to India
d) As you like it
e) Ivanhoe
GK 6. What is common to the following railway stations from the point of view of fast travel 5 marks
Lucknow, Kalka, Amritsar, Dehardun, Bhopal, Bokaro, Ahmedabad, and Bangalore
GK 7. Name the four highest civilian awards given in our country naming atleast two recipients of the highest award 5 marks
SECTION B (MAXIMUM MARKS 100)
This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks of 25
PART A
BA 1. What are the various instruments through which the Indian railway finance corporation raises funds? How are these deposited to meet the capital requirement of railways ? how does the Indian railways discharge its liability to the corporation?
BA 2. write short notes on any four
a) Amortisation
b) Capital Fund
c) Railway Fare And Freight Enquiry Committee
d) Activity Based Costing
e) BOLT Schemes
f) Budgetary Reports
BA3. What are the various committees of parliament relating to railway financial performance? Explain in detail the working of any one of the committees
BA4. “In the wake of economic reforms and liberalisation policies Indian railway’s system and procedures require fundamental change” discuss
BA 5. (a) What is the purpose of different funds in the set up of the existing railway’s financial system?
(b) What are the implications in financial terms and nature of justification between charging of works to capital fund and capital-at-charge?
PART B
BB 1. What do you understand by zero based budget? How is this improvement over the conventional system of budgeting in railways?
BB2. Explain the present system of remittance of earnings into government account. What are your suggestions for improving the promptness of accountal?
BB3. How is the earnings budget of a railway formulated? What is the usefulness of various statistical data in this exercise?
BB4. Within the appropriations voted by parliament, relays should be free to prioritise their investments on works, rolling stock and machinery and plant. Do you agree? Give reasons for your answer.
BB5. The present system of closing of accounts and transfer adjustments delay the availability of accounting information for decision making. What are the areas in which this can be improved upon?
LDCE QUESTION PAPERS YEAR WISE
7th September 1996
PAPER II
FINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS: ESTABLISHMENT (OR) GENERAL EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS
Important: this paper contains two sections A and B. both the sections have to be answered. Section A is compulsory for all candidates and carries 50 marks maximum
Section B which carries 100 marks maximum has two parts A and B. candidates should attempt either of the two papers depending on their optional subjects.
Section A maximum marks 50
A – 1. what do you understand by “life-cycle” costing? What are the important areas where it can be employed? How is it an improvement over the normally known costing system?
A – 2. what is meant by financial ratios? Enumerate any three of them. Can the operating ratio be considered as a financial ratio? Give reasons for your answer
A – 3. a work costing Rs 75 Lakhs and not included in the sanctioned budget is required to be executed urgently. What is the procedure to be followed in the zonal railway before the work can be commenced?
A- 4. in regard to goods traffic what is the traffic costing information available? How are they helpful in investment formulation?
Section B
Important: this section contains two part A & B. either part A or Part B should be attempted by candidates depending on their choice of optional. Each part contains a maximum of 100 marks.
Part A Traffic accounts and statistics establishment
Answer any three questions
All questions carry equal marks
BA 1. What is the impact and consequential changes on the traffic accounts office due to introduction of passenger reservation system (PRS) and advanced railway ticketing system (ARTS)? Has this contributed to the efficiency of internal check?
BA 2. Write short notes on
a) Cash in transit
b) Leave not due
c) Ex- Gratia bonus
d) Demands recoverable
e) Charges for haulage of postal traffic
BA 3. What are the types of statistical information generated from a goods invoice? Explain in detail how any three of them are calculated.
BA 4. How far can the procedure relating to internal check in the accounts code be dispensed with in respect of computer prepared pay bills?
BA 5. The performance of the accounts dept in recovering dues to the administration from the employees requires improvement. Can you suggest any system improvement?
Part B General Expenditure accounts workshop and stores accounts
BB1. Higher inventory levels are preferable to “out of stock” situations. What are the economic and financial implications?
BB2 what are the existing safe guards for effective control over expenditure? Can you suggest any improvement?
BB 3. What do you understand by the “two envelope system” in a works tender? How is this an improvement over the existing open tender system?
BB4. The existing system of incentive payment encourages inefficiency and dilutes quality. Can you suggest any alternative system to improve productivity in the workshops?
BB 5. an item was simultaneously ordered on two sources after an open tender – A at Rs 2.00 per unit and B at Rs 2.05 per unit. B completes his supply within the delivery period of 90 days and A fails to even commence supply. In this back ground a proposal is received from the COS for enhancing the quantity on B, arguing that the item is regularly required and stocks will last only 15 days. B is agreeable for the enhancement. What will be your recommendations on the proposal? Give reasons for your answer.
6th September 1996
PAPER I
GENERAL KNOWLEDGE AND ENGLISH; GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND BUDGET INCLUDING TRAFFIC BOOK
Important: this paper contains two sections A and B. both the sections have to be answered. Section A carries 50 maximum, and section B carries 100 marks
SECTION A
GK1. Expand the abbreviations in any five 5 marks
a) CTBT
b) ICRISAT
c) NABARD
d) ECAFE
e) PSLV
f) WTO
g) SEBI
h) MAT
i) ILO
j) BIFR
GK2. (I) Write short notes on any five 10 marks
a) Alamatti Dam
b) CHIPKO Movement
c) Medha Patkar
d) Damodhar Valley Corporation
e) Vote On Account
f) Atlanta
g) Solar Energy
Or
(ii) Write the main features of the official language Act 1963 (Act 19 of 1963)
GK3. Write a note in not more than 200 words on any one of the following 15 marks
a) Public sector disinvestment programme
b) Amarnath yatra
c) SAARC
GK 4. Fill up the blanks with suitable preposition 5 marks
Coming back _______ the Eastern Railway, operations were _____ its peak efficiency and ____ February and March 1969, _____ loading figures ____ coal and general goods set new records. ___ far ____ general goods loading is concerned the figures obtained _____ those months have never been reached subsequently.
GK 5. Name the authors of the following books 5 marks
a) Discovery of India
b) My experiments with truth
c) Passage to India
d) As you like it
e) Ivanhoe
GK 6. What is common to the following railway stations from the point of view of fast travel 5 marks
Lucknow, Kalka, Amritsar, Dehardun, Bhopal, Bokaro, Ahmedabad, and Bangalore
GK 7. Name the four highest civilian awards given in our country naming atleast two recipients of the highest award 5 marks
SECTION B (MAXIMUM MARKS 100)
This section contains two parts A and B. attempt any four questions taking any two from each part. All questions carry equal marks of 25
PART A
BA 1. What are the various instruments through which the Indian railway finance corporation raises funds? How are these deposited to meet the capital requirement of railways ? how does the Indian railways discharge its liability to the corporation?
BA 2. write short notes on any four
a) Amortisation
b) Capital Fund
c) Railway Fare And Freight Enquiry Committee
d) Activity Based Costing
e) BOLT Schemes
f) Budgetary Reports
BA3. What are the various committees of parliament relating to railway financial performance? Explain in detail the working of any one of the committees
BA4. “In the wake of economic reforms and liberalisation policies Indian railway’s system and procedures require fundamental change” discuss
BA 5. (a) What is the purpose of different funds in the set up of the existing railway’s financial system?
(b) What are the implications in financial terms and nature of justification between charging of works to capital fund and capital-at-charge?
PART B
BB 1. What do you understand by zero based budget? How is this improvement over the conventional system of budgeting in railways?
BB2. Explain the present system of remittance of earnings into government account. What are your suggestions for improving the promptness of accountal?
BB3. How is the earnings budget of a railway formulated? What is the usefulness of various statistical data in this exercise?
BB4. Within the appropriations voted by parliament, relays should be free to prioritise their investments on works, rolling stock and machinery and plant. Do you agree? Give reasons for your answer.
BB5. The present system of closing of accounts and transfer adjustments delay the availability of accounting information for decision making. What are the areas in which this can be improved upon?
LDCE QUESTION PAPERS YEAR WISE
7th September 1996
PAPER II
FINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS: ESTABLISHMENT (OR) GENERAL EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS
Important: this paper contains two sections A and B. both the sections have to be answered. Section A is compulsory for all candidates and carries 50 marks maximum
Section B which carries 100 marks maximum has two parts A and B. candidates should attempt either of the two papers depending on their optional subjects.
Section A maximum marks 50
A – 1. what do you understand by “life-cycle” costing? What are the important areas where it can be employed? How is it an improvement over the normally known costing system?
A – 2. what is meant by financial ratios? Enumerate any three of them. Can the operating ratio be considered as a financial ratio? Give reasons for your answer
A – 3. a work costing Rs 75 Lakhs and not included in the sanctioned budget is required to be executed urgently. What is the procedure to be followed in the zonal railway before the work can be commenced?
A- 4. in regard to goods traffic what is the traffic costing information available? How are they helpful in investment formulation?
Section B
Important: this section contains two part A & B. either part A or Part B should be attempted by candidates depending on their choice of optional. Each part contains a maximum of 100 marks.
Part A Traffic accounts and statistics establishment
Answer any three questions
All questions carry equal marks
BA 1. What is the impact and consequential changes on the traffic accounts office due to introduction of passenger reservation system (PRS) and advanced railway ticketing system (ARTS)? Has this contributed to the efficiency of internal check?
BA 2. Write short notes on
a) Cash in transit
b) Leave not due
c) Ex- Gratia bonus
d) Demands recoverable
e) Charges for haulage of postal traffic
BA 3. What are the types of statistical information generated from a goods invoice? Explain in detail how any three of them are calculated.
BA 4. How far can the procedure relating to internal check in the accounts code be dispensed with in respect of computer prepared pay bills?
BA 5. The performance of the accounts dept in recovering dues to the administration from the employees requires improvement. Can you suggest any system improvement?
Part B General Expenditure accounts workshop and stores accounts
BB1. Higher inventory levels are preferable to “out of stock” situations. What are the economic and financial implications?
BB2 what are the existing safe guards for effective control over expenditure? Can you suggest any improvement?
BB 3. What do you understand by the “two envelope system” in a works tender? How is this an improvement over the existing open tender system?
BB4. The existing system of incentive payment encourages inefficiency and dilutes quality. Can you suggest any alternative system to improve productivity in the workshops?
BB 5. an item was simultaneously ordered on two sources after an open tender – A at Rs 2.00 per unit and B at Rs 2.05 per unit. B completes his supply within the delivery period of 90 days and A fails to even commence supply. In this back ground a proposal is received from the COS for enhancing the quantity on B, arguing that the item is regularly required and stocks will last only 15 days. B is agreeable for the enhancement. What will be your recommendations on the proposal? Give reasons for your answer.
LDCE QUESTIONS 1994
LDCE QUESTION PAPERS
MAY 1994
PAPER I
GENERAL KNOWLDEDGE AND ENGLISH; GENERAL PRICIPLES OF GOVERNEMNT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND BUDGET INCLUDING TRAFFIC BOOK
Important: this paper contains two sections A and B. both the sections have to be answered. Section A carries 50 maximutm, and section B carries 100 marks
SECTION A (Max marks 50)
GK1. Expand the abbreviations in any five 5 marks
i. GATT
ii. IMF
iii. ANC
iv. ASEAN
v. SLV
vi. NPT
vii. CAT
viii. RBI
ix. ADB
x. UPSC
GK 2. Write short note on any five 10 marks
i. Isobar
ii. Dunkel
iii. Territorial waters
iv. Wind farms
v. Bosania
vi. Telugu ganga
vii. Nelson Mandela
viii. Yasser Arafat
ix. Narmada project
x. Hazarat bal mosque
GK 3. Match the following 5 marks
i. Lara a. Jhansi
ii. Rabindranath Tagore b. Atomic Energy
iii. Lakshmi Bai c. Cricket
iv. Homi Baba d. Chess
v. Anand e. Geethanjali
GK 4. Use any five of the following pairs of words in sentences of your own 10 marks
i. coarse – course vi. Prey - pray
ii. wise - vice vii. Brake - break
iii. call – cavail viii. Tall – toll
iv. rain – rein ix. Foil - fail
v. sell - cell x. Naval – Novel
GK 5. Fill up the blank with suitable prepositions 5 marks
The absence _____ census data is taken advantage of ____ various persons ____ each state ____boost the estimates _______ persons speaking their language.
GK 6. Write a note in not more than 250 words one of the following 10 marks
a. national literacy programme
b. rail road coordination
c. public sector undertaking
GK 7. Give one word for any five of the following 5 marks
i. one who sells flowers
ii. doctor treating children
iii. specialist in heart disease
iv. documents issued by authority to its citizens who wants to travel abroad
v. the presiding authority over Lok Sabha who generally conducts its proceedings
vi. one who writes dramas
vii. the highest point of a mountain
viii. a person who knows a number of languages
ix. science dealing with study of animals and birds
SECTION B
This section contains two parts A and B. Attempt any four questions taking any two from each part. All questions carry equal marks
PART A
BA 1. Discuss the committee system introduced for ________ of the budget and examine whether this in any way rendered any of other already existing instrument/procedure for financial control of railway by parliament redundant.
BA 2. What is the purpose of different “funds” in the set up of existing financial system of railways? Has there been any change in the last two years? Discuss the pros and cons of the change if any
BA 3. In what way the present set up and systems and procedures in railway help or hinder the railway in coping with the recent liberalisation policy initiated by the Government? Discuss
BA 4. Write short notes on any four
Railway Convention Committee
Plan Heads
Indian Railway Finance Corporation
Konkan Railway Corporation
Canons Of Financial Propriety
BA 5. What is the need for separate audit by representatives of the Comptroller and Auditor General? With more effective organisation or internal auditing system can it be dispensed with? Discuss
PART B
BB 1. Do you consider the present procedure method of assessing earnings effective and realistic? Suggest any improvements / innovations you feel necessary
BB 2. How far the principles of zero based budgeting and management accounting been adopted I n railway in assessing the requirement as also reasonableness and need of inputs and analysis and presentation? Discuss
BB 3. “The present system of monitoring and accountal of remittance of earnings is not effective In preventing frauds”. Discuss. Do you suggest any procedural changes?
BB 4. “The present procedure of apportionment of earnings and expenditure is not fair to the southern railway with limited lead”. Discuss
BB 5. Discuss whether it is necessary to have Annual Works Programme, and M&P as at present? What are the alternatives/improvements you would suggest and why?
LDCE QUESTION PAPERS YEAR WISE
May 1994
PAPER II
FINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS: ESTABLISHMENT (OR) GENERAL EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS
Important: this paper contains two sections A and B. both the sections have to be answered. Section A is compulsory for all candidates and carries 50 marks maximum
Section B which carries 100 marks maximum has two parts A and B. candidates should attempt either of the two papers depending on their optional subjects.
Section A maximum marks 50
Attempt any two questions. Each questing carries 25 marks
A – 1. How far the present traffic costing been effective in determining realistically the financial viability of introduction of new trains/augmentation of service?
A – 2. “Traffic costing like statistics is often used not for enlightenment in taking correct decision but for supporting decisions one wants to take”. How far is this statement well founded or unfounded. Discuss with specific cases if any illustrating your stand.
A – 3. How often the principle of marginal costing used in capturing / retaining the customer while protecting and furthering the financial interest of railways? Illustrate
A – 4. How far the principle of zero based assessment of inputs and innovation in management accounting principles utilised to further the objective of change over to unigauge system? Discuss.
SECTION B
Important: This section contains two parts A and B. Either part A or part B should be attempted by candidates depending on their choice of optional Each part contains a maximum of 100 marks
Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)
Answer any three questions. All questions carry equal marks
BA – 1. How far the present method of compilation and presentation of statistical data helped in effective management decision and control on railway?
BA – 2. Division as profit center knows its expenditure and not its earnings. How far divisionalisation of traffic accounts help in ensuring effective informed participation nad mobilisation in bettering the financial performance of the division?
BA – 3. Has the computerisation of reservation system helped in improving the earnings, effecting analysis of passenger profile to maximise the earnings/utilisation of seats, plug loopholes? Discuss the effectiveness of passenger reservation system (PRS) and advance railway ticketing system(ARTS) introduced in current booking.
BA – 4. Write Short Notes On
Firms Credit Notes (FCNs)
Special Casual Leave
National Holiday
Wage Period
Productivity Linked Bonus (PLB)
BA – 5. Discuss the present method of accountal and recovery of advances and dues like festival advances, diet charges, electricity charges from the staff. Discuss whether the system for recovery is effective and suggest any improvement felt necessary
BA – 6. What are the steps you would suggest to control the expenditure on establishment – which has almost doubled over the last few years – for improving the competitiveness of the railways and its viability?
PART B (GENERAL EXPENDITURE ACCOUNTS AND WORKSHOP AND STORES ACCOUNTS)
Answer any THREE questions. All questions carry equal marks
BB – 1. Is risk purchase effective in our system? If not why not and what is the procedural/policy correctives you would suggest?
BB -2. With the cost of finance the inventory carriage is increasingly becoming costly. How can railways reduce inventory without compromising on effectiveness of its service and also ensure economy?
BB - 3. Discuss the effectiveness of prevailing system of incentive payment in railway workshop. How is it an instrument for improving productivity with quality commensurate with investment for modernisation of the workshop?
BB – 4. How far the system of purchase through open tenders ensured quality with economy and reliability? Should railway change over to a system of identifying reliable suppliers with long term commitment in the interest of ensuring quality and reliability?
BB – 5. is the present procedure/method of planning , procuring and inducting machines as replacement or for modernisation cost effective? What are the improvements you suggest to ensure the investments slim, strictly need based and improvement is productivity commensurate with investment is ensured?
BB – 6. There is growing feeling that “we should better privatise, better buy than make”. Why is this so? What role can stores and workshop accounts play to rationalise and ensure “makes”, more attractive than “buys” and reverse the trend?
ARBITRATION
ARBITRATION
In the interest of the railway administration, in case of any dispute or difference between the contractor and the railway administration over a contract is protected under clause 64 of standard general conditions of contract, for works contract and clause 2900 of IRS conditions of contract in case of supply. In case of any question or dispute arising under any conditions of contract, the same shall be referred to the sole arbitrator or joint arbitrators. The arbitrator shall be a railway gazttted officer appointed by the GM in case of contract entered into by zonal railways. In case of contracts entered in to by railway board by also GM/AGM the arbitrator shall be a JA grade officer or above. The arbitrator should be one who had not an opportunity to deal with the matter under dispute or who is course in his duties should not have expressed his views on any matter under dispute. The award of the arbitrator is final and binding on both the parties.
No arbitration demand from the contractor shall be entertained if the contractor has received the final settlement of all claims and given a no claims certificate. Railway board should be informed in case the payment of award exceeds by more than Rs 50000/- against the amount considered by the railway administration before the arbitration. The arbitration should begin only after a demand from the contractor. Excepted matters shall not be referred to arbitration. Excepted matters means, the items in the contract which will bind the contractor as per the conditions of the contact and the decisions of the engineer of the railways is final. For example, classification of soil.
A single arbitrator is appointed in the case the claim is less than Rs 5 lakhs and where the issue involved is not complicated in nature. Two arbitrators of equal status one invariably from accounts department if the claim is more than Rs 5 lakhs or complicated in nature are appointed. Where the claim is up to Rs 3 lakhs item wise award should be given. If above Rs 3 lakhs, a case a reasoned / intelligible award is given.
Appointment of arbitrators: Where two arbitrators are to be appointed, a panel of more than three officers is sent to the contractor who will select and suggest one of them as his nominee. GM shall nominate another. The arbitrators can nominate another gazetted officer as umpire and GM appoints him. In case the arbitrator dies ore resigns or unwilling, GM will nominate another arbitrator. The arbitration is covered under Arbitration Act 1940.
ADVANTAGE OF ARBITRATION:
1. Quick settlement, 2. Early finality, 3. Simple procedures, 4. Inexpensive proceedings, 5. Non involvement of lawyers, 6. Privacy maintained and 7. Awards are binding.
1. Quick settlement: As time given to the arbitrator / umpire is limited to 4/2 months respectively to settle the dispute. Therefore arbitration can not be dragged.
2. early finality: The arbitrator’s award can be set aside only on very limited grounds whereas in courts, the lawyers see to it and the case is taken to higher courts for several years causing financial and mental agony to both the parties of dispute.
3. Simple procedures: Arbitration is quasi judicial. Legal formalities are not followed. Lawyers need not be engaged. Any one can present the case and argue unlike the court where the presentation is filtered by the integrity, intelligence, industry and understanding of the lawyer.
4. Inexpensive proceedings: No court fee is to be paid. Only the expenses of the meeting or hearing are to be paid. Small honorarium is paid to the arbitrator.
5. Non involvement of lawyers: Arbitrator with technical knowledge and experience can decide the case. Hence the services of lawyers are not required.
6. Privacy maintained: Since the proceedings are held in camera, privacy is maintained.
7. Awards are binding: Very little scope exists for setting aside the award and going for appeal against the award.
Ingredients of arbitration: Arbitration is said to be a domestic tribunal. There must be an agreement between the parties in writing. There should be provision for arbitration in the agreement.
Nature of dispute referred to arbitration:
1. claim for extra item of work, quantum , rate of payment etc
2. claims for variations in scheduled quantities
3. delay in completion of work
4. compensation for prolonged duration
5. delay in settlement of bills
6. delay in giving decisions on matters referred
7. dispute against non – scheduled items
8. dispute on termination of contract at contractor’s risk and cost
9. questioning the decision of railway clauses on excepted matters
10. regarding measurement, specification and drawing, defective workmanship
11. dispute on hire charges of plant and machinery
12. Lacunae in contract conditions.
Procedure for conducting arbitration: The arbitrator may conduct the proceeding in any manner he deems fit but within the principles of natural justice. The arbitrator is not bound by any rule of procedure which the court shall follow. The arbitrator need not record statements and file documents etc. it is not obligatory on his part to take notes of his proceeding. If he keeps such notes he cannot be compelled to produce them in court. In arriving the decision by relying upon facts and conditions on which court of law does not interfere, but the arbitrator shall hear both the parties to submit their claim. Once the claim and the counter claims are received a date is fixed for the hearing, the arbitrator reads out the terms of reference and then the proceeding are started. Being the appellant, the contractor is given the first chance and then the railways. Both are given the full opportunity back and forth to present their respective points. Exhibits presented by both the parties are scrutinized and evidence adduced. The site is visited by the arbitrator / s if called upon by any party. The date of next hearing is also included in the minutes and handed over to both the parties. At the end of the haring a certificate is obtained from both the parties to be the effect that an adequate opportunity was given to both of them. Arbitrator than finalize the award.
The arbitrator advises the parties that 1. The award is ready 2. The amount of fees to be paid and 3. The amount to be paid as stamp duty. After the fees are paid, award is written and signed on the stamp paper. With the signing of the award which is known as publication of the award, the arbitrator becomes “ functus officio” . He then informs both the parties and the award is filed in a court. Filing of the award in compulsory if the reference for arbitration is directed by a court under section 20(4) of Arbitration Act 1940. The party calling for it will move to the court for issue of decree. Based on the decree the award is affected.
Honorarium: The quantum of honorarium paid to the arbitrator is as follows:
In some railways the honorarium is paid by the railways and in other railways the amount is paid / shared by both the railways and the contractor. All communications addressed by the arbitrator should be endorsed to both the parties. No deliberations should be done in the absence of any one of the aggrieved party.
Time limit: Where nothing is stipulated in the terms of reference the time limit is 4 month for the arbitrator and 2 months for the umpire. The time span can be enlarged only with the mutual consent of both the parties or by the court. If the arbitrator / umpire enlarge the time frame suo moto such action will be null and void. If the award is not given within the time limit, the arbitrator will become “functous officio”.
Provisions in the Act:
1. the arbitrator should be appointed by a third party or by a court
2. grounds for setting aside the award
a. where there is an apparent error
b. the arbitrator misconducted himself
c. the award has been made superceding the directions of a court
d. Award has been improperly procured in other words, “invalid”. The term “invalid” means where ambiguous and uncertain award which cannot be implemented. The award which does not decides all disputers, award otherwise than the authority conferred. The subject matter of the award is incapable of being referred, award passed on erroneous legal perspectives. All the above items narrated above come under the term “invalid”
e. no second appeal shall lie except to appeal to supreme court
Reasons for the increase in arbitration cases:
1. initial mistake and incorrect preparation of tender documents
2. improper maintenance of records for issue of materials
3. failure in giving appropriate notices for the delays on the part of the contractor
4. Delay in taking decisions relating to rates, new items, variation in quantity and modification in work.
5. improper assessment of contractor’s credentials
6. incorrect or ambiguous terms in the conditions
7. recording of measurements in the absence of the contractor
8. difference in opinion in the interpretation of scheduled items classification of soil etc
9. delay in supplying of materials leading the materials to the site, poor quality, incorrect assessment in quantity and accounts of scrap etc
10. delay in acquiring land
11. Granting of extension without valid reasons and without the consent of the party and not quoting the clause under which the extension is rendered.
Improvements: the above mentioned short comings are to be avoided
Pre Arbitration Committee: With a view to settle that claims of the contractors arising out of disputes and to reduce the number of arbitrations, new procedure was introduced in I R in the middle of the year 1991. A joint procedure was issued by FA & CAO and CE during June 1991. a divisional level and HQ level committee is nominated to deal with the disputes prior to the arbitration and termed as Pre Arbitration Committee. In divisional level, the members of the committee should be a J A Grade officer and accounts officer either in J A grade or in Sr Scale. In the case of HQ level JA grade officers from executive and accounts dept.
Matters referred to Pre Arbitration Committee:
v It is proposed to terminate a contract which has sufficiently advanced or the contract is running into trouble before taking decision to terminate a contract and to avoid the arbitration and solved problems, the matter will be referred to pre arbitration committee.
v For any claim while the work is in progress or work completed awaiting payment, the pre arbitration can enquire
v Even before the contractor seeks for any arbitration, the matter can be referred to the arbitration.
Nominations of the members of the committee at HQ level by PHOD for the contracts entered into by them or lower authorities by AGM/GM in other cases. All divisional leve the nominations are made by DRM. Recommendations of Pre Arbitration Committee should be put up to DDRM in the divisional level and PHOD or AGM/GM in case of HQ level..
Conduct of the Meeting:
Discussion held with the contractor or his representative and shall record the discussion signed by the members and contractor. The contractor shall be made known that the discussion is without prejudice to the railways interest. If any understanding ire reached for a full claim or a partial claim a “claims certificate” should be obtained in writing from the contractor.
Committee shall record the specific reasons for the conclusions and put up to the accepting authority. In case of difference of opinion, it should be recorded separately and put up to the accepting authority whose decision is final. The recommendations should be routed through associate finance. The proceedings of the committee should be specific and in detail. No firm commitment should be given to the contractor. He should be made known that the recommendations of the committee are tentative subject to acceptance of the accepting authority. To this effect, a specific letter should be obtained from the contractor.
Friday, October 2, 2009
REVISED COSTING (RCS) FOR AC LOCO POH
REVISED COSTING IN RAILWAY WORKSHOPS – LW/PER FOR AC LOCOs
Ø Wide variation in the existing cost procedure
Ø Due to non-standardization of work like POH, IOH
Ø Revised Costing
v Solves the existing deficiencies and gives additional information
v Based on the Cost Center approach Cf: Hassan Iqbal Recommendations
SALIENT FEATURES:
1. applicable to AC locos
2. average unit cost of locos class wise
3. trifurcation of activities
a. Normal OH or Group A
b. Unscheduled – Group B
c. High value items – Group C
4. Average unit cost of OH for each identified major assembly
5. average unit cost of all major repair activities- power/control cables
6. average unit cost of major modification
7. cost of high value items individual loco cost center wise
8. proforma on cost- for managerial information
9. Cost of capital spares use din individual locos
METHODOLOGY:
Work orders to have eight digits
1. Railway No, 2 & 3 shop No, 4 Demand No, 5 Minor Head,6,7&8 Cost Center No
eg., 5 12 6 5 502
No change in the existing work orders for on cost
Define POH and IOH
Cost center is a section or a group where specific repair activities are under taken- identified by a cost center No Eg. Transformer and oil cooling, bogie and brake rigging, wheel axle and axle box.
RCS trifurcates the repair cost in to 1 Basic, 2 variable, 3 high value items.
RCS requires a Monthly Statement of Non Stock items cost center wise.
RCS insists on the generation of Section Outturn statements based on Cost Center wise separately for A,B & C.
In the outturn for A, B & C loco wise input to be shown.
Total quantum of work done in a particular cost center in terms of standard unit/assembly corresponding to WAM 4
Non-POH costs should not be included in the POH out turn when it is undertaken in the POH shops. Separate outturn for non-POH activities for completed work to be prepared.
Pre determined ratios is on time study of collection of costs cost center wise for each repair / overhaul
Establishment of separate costing cell in accounts office to work out the unit cost of repairs of each assembly/modification under section officer (A) and submission of accounts to Books section – a technical supervisor to be nominated for co coordinating with the costing cell
The RCS insist on collection of expenses under cost center wise for labor and stores
No changes in the workshop general register for the RCs
No change in the existing outturn statement
The average unit cost of a cost center is arrived at by dividing the total expenditure of the cost center by its equated output.
Loco repair cost is arrived by adding the costs under groups A,B & C
Distribution of SOC, GOC and POC shall continue as at present
Ø Wide variation in the existing cost procedure
Ø Due to non-standardization of work like POH, IOH
Ø Revised Costing
v Solves the existing deficiencies and gives additional information
v Based on the Cost Center approach Cf: Hassan Iqbal Recommendations
SALIENT FEATURES:
1. applicable to AC locos
2. average unit cost of locos class wise
3. trifurcation of activities
a. Normal OH or Group A
b. Unscheduled – Group B
c. High value items – Group C
4. Average unit cost of OH for each identified major assembly
5. average unit cost of all major repair activities- power/control cables
6. average unit cost of major modification
7. cost of high value items individual loco cost center wise
8. proforma on cost- for managerial information
9. Cost of capital spares use din individual locos
METHODOLOGY:
Work orders to have eight digits
1. Railway No, 2 & 3 shop No, 4 Demand No, 5 Minor Head,6,7&8 Cost Center No
eg., 5 12 6 5 502
No change in the existing work orders for on cost
Define POH and IOH
Cost center is a section or a group where specific repair activities are under taken- identified by a cost center No Eg. Transformer and oil cooling, bogie and brake rigging, wheel axle and axle box.
RCS trifurcates the repair cost in to 1 Basic, 2 variable, 3 high value items.
RCS requires a Monthly Statement of Non Stock items cost center wise.
RCS insists on the generation of Section Outturn statements based on Cost Center wise separately for A,B & C.
In the outturn for A, B & C loco wise input to be shown.
Total quantum of work done in a particular cost center in terms of standard unit/assembly corresponding to WAM 4
Non-POH costs should not be included in the POH out turn when it is undertaken in the POH shops. Separate outturn for non-POH activities for completed work to be prepared.
Pre determined ratios is on time study of collection of costs cost center wise for each repair / overhaul
Establishment of separate costing cell in accounts office to work out the unit cost of repairs of each assembly/modification under section officer (A) and submission of accounts to Books section – a technical supervisor to be nominated for co coordinating with the costing cell
The RCS insist on collection of expenses under cost center wise for labor and stores
No changes in the workshop general register for the RCs
No change in the existing outturn statement
The average unit cost of a cost center is arrived at by dividing the total expenditure of the cost center by its equated output.
Loco repair cost is arrived by adding the costs under groups A,B & C
Distribution of SOC, GOC and POC shall continue as at present
VARIATION IN POH COST IN WORKSHOPS
COST OF REPAIRS IN RAILWAY WORKSHOP UNIT: VARIATION IN COST
Introduction: In railways, costing as a management device to assess as well as to control costs is of very recent phenomenon. Nowadays, costing has become very central to the concept of management. Costing is being applied to the railway workshops in order to achieve the unit cost of various phases of workshop activity. Primarily the cost of POH is to be identified in order to improve the efficiency and productivity of the railway workshops.
COST ACCOUNTING AND ITS SALIENT FEATURES: Cost accounting serves the following functions:
1) Identify unit of cost-of product, department or service
2) Arrive at the net result – cost, profit or loss- for each item of operation, production or service.
3) Help valuation of stocks and work-in-process by each type, category and component.
4) Help construction of budget and budgetary control.
5) Develop control systems through analysis and exceptions.
6) Present and interpret data for management planning, decision-making and control.
7) Suggest criteria for choice among alternatives of investment, output, products and markets.
INHERENT DIFFERENCE: The present day nine zonal railways are created out of the previous company railways. Hence, the differences persist even today in the unit cost of various phases of workshop activity. Obviously in the cost of repairs to rolling stock also the variation persist despite best efforts taken. Therefore, the historical realities should be taken into consideration for identifying the unit cost variation.
RAILWAYS AND COSTING: The days of transport monopoly enjoyed by the railways are over. So is the unstained support the railways received from the General revenue. The railways have been asked to generate their own internal funds to meet the various projects besides, the regular maintenance work. Generate.
THE GROUND REALITIES: At present the repair cost obtained is on average basis only. No scientific system of costing being adopted for cost collection and cost control purposes. According to the existing system, the expenditure relating to each repair activity is accumulated from April to March the previous year and the same is divided by the total number of units turned out for the same period.
There seem to be wide variation in the unit repair cost of various railways or for similar activity. As said earlier the repair costs are only the average cost which gives/provides no room for any comparison between unit costs of various railways. There is no standard or estimate prevalent for making the variance analysis to find the reason for high cost or otherwise.
The Railway Board has sometimes-ago fixed standard man-hours for POH activities without giving the details of material requirement etc. The man-hour content is more or less the same in the different workshop. The unit cost of labour may/different due to/be:
1) Variation in Labour Mix.
2) Variation in the Labour cost (HRA, CCA etc)
3) Variation in the efficiency of the Workshops.
4) The total number of operation carried out in repair activities – P O H.
VARIATION IN LABOUR MIX: The workshop labour is categorized into unskilled, semiskilled, skilled I, II and III, mistry, charge man, foreman, Deputy Shop Superintendent, Shop Superintendent Etc. Such variety is existing in all the railway workshops. However, the same number of labour may not be used in all workshops for a job. Naturally, such difference would show wide fluctuations in the unit cost.
VARIATION IN THE LABOUR COST: In the cost analysis study made by the Railway Staff College, in 1990, it was found that the P O H costs for Wagons on Eastern Railway, Northern Railway, North East Frontier Railway, South Central Railway and Western Railway have been more or less same for the period from 1984 to 1988. However, the study found that the cost is the highest in Southern Railway followed by North Eastern Railway. Similarly, the cost is high in Central and South Eastern Railways.
VARIATION IN THE EFFICIENCY OF THE WORKSHOPS: The present day Railway workshops are handed down to the various zonal railways from the erstwhile company railways. Hence the efficiency of the technology and machinery in these shops vary and the resultant cost variation. The efforts to streamline the efficiency of the railway workshops have culminated in the formation of COFMOW – Central Organization for Modernization of Workshops. However, the historical reasons for the difference in the unit cost will persist until the modernization reaches the farthest corner of the workshops.
OTHER VARIATION FACTORS: The workshop infrastructure facilities, the environment, availability of tools etc, will also cause the variation in the unit cost.
REASONS FOR THE VARIATION IN MATERIAL: The reasons for difference in material cost is due to the following reasons,
1) Policy of the Stores/Material Management
2) Proximity to the market or source of supply.
3) Distance and the transport cost.
4) Storage facilities.
SUGGESTIONS:
1) Introduction of Job or Batch costing system in the workshops will improve the cost control measures.
2) Fixing a proper standard, preferably by the Railway Board in respect of materials to be supplied and man-hours to be utilized for each repair activity.
3) Cost Centres/ Profits Centre approach may be introduced for repair activities for better cost control purposes.
4) Introduction of Zero Based Budgeting and estimating the cost of repair will improve the Inter-Railway comparison of costs.
5) Latest and effective tools and sophisticated machinery may be provided to all workshops.
CONCLUSION: In the days to come, due to economic liberalization and privatization, the railways’ cost responsibility has increased manifold. The dwindling support from the General Revenue may altogether stop at a time. Hence, it is high time; the railways have evolved a scientific costing system to watch as well as to control the costs. Such reduction in the working expenditure will improve the adverse Operating Ratio. The over all efficiency will be toned up due to constant watch on the costs. The corporate objective of reduction in the tariff cost can be achieved with the cost control. Finally, the efficient and cheaper transport would contribute to the welfare of the people of India and the Country.
Introduction: In railways, costing as a management device to assess as well as to control costs is of very recent phenomenon. Nowadays, costing has become very central to the concept of management. Costing is being applied to the railway workshops in order to achieve the unit cost of various phases of workshop activity. Primarily the cost of POH is to be identified in order to improve the efficiency and productivity of the railway workshops.
COST ACCOUNTING AND ITS SALIENT FEATURES: Cost accounting serves the following functions:
1) Identify unit of cost-of product, department or service
2) Arrive at the net result – cost, profit or loss- for each item of operation, production or service.
3) Help valuation of stocks and work-in-process by each type, category and component.
4) Help construction of budget and budgetary control.
5) Develop control systems through analysis and exceptions.
6) Present and interpret data for management planning, decision-making and control.
7) Suggest criteria for choice among alternatives of investment, output, products and markets.
INHERENT DIFFERENCE: The present day nine zonal railways are created out of the previous company railways. Hence, the differences persist even today in the unit cost of various phases of workshop activity. Obviously in the cost of repairs to rolling stock also the variation persist despite best efforts taken. Therefore, the historical realities should be taken into consideration for identifying the unit cost variation.
RAILWAYS AND COSTING: The days of transport monopoly enjoyed by the railways are over. So is the unstained support the railways received from the General revenue. The railways have been asked to generate their own internal funds to meet the various projects besides, the regular maintenance work. Generate.
THE GROUND REALITIES: At present the repair cost obtained is on average basis only. No scientific system of costing being adopted for cost collection and cost control purposes. According to the existing system, the expenditure relating to each repair activity is accumulated from April to March the previous year and the same is divided by the total number of units turned out for the same period.
There seem to be wide variation in the unit repair cost of various railways or for similar activity. As said earlier the repair costs are only the average cost which gives/provides no room for any comparison between unit costs of various railways. There is no standard or estimate prevalent for making the variance analysis to find the reason for high cost or otherwise.
The Railway Board has sometimes-ago fixed standard man-hours for POH activities without giving the details of material requirement etc. The man-hour content is more or less the same in the different workshop. The unit cost of labour may/different due to/be:
1) Variation in Labour Mix.
2) Variation in the Labour cost (HRA, CCA etc)
3) Variation in the efficiency of the Workshops.
4) The total number of operation carried out in repair activities – P O H.
VARIATION IN LABOUR MIX: The workshop labour is categorized into unskilled, semiskilled, skilled I, II and III, mistry, charge man, foreman, Deputy Shop Superintendent, Shop Superintendent Etc. Such variety is existing in all the railway workshops. However, the same number of labour may not be used in all workshops for a job. Naturally, such difference would show wide fluctuations in the unit cost.
VARIATION IN THE LABOUR COST: In the cost analysis study made by the Railway Staff College, in 1990, it was found that the P O H costs for Wagons on Eastern Railway, Northern Railway, North East Frontier Railway, South Central Railway and Western Railway have been more or less same for the period from 1984 to 1988. However, the study found that the cost is the highest in Southern Railway followed by North Eastern Railway. Similarly, the cost is high in Central and South Eastern Railways.
VARIATION IN THE EFFICIENCY OF THE WORKSHOPS: The present day Railway workshops are handed down to the various zonal railways from the erstwhile company railways. Hence the efficiency of the technology and machinery in these shops vary and the resultant cost variation. The efforts to streamline the efficiency of the railway workshops have culminated in the formation of COFMOW – Central Organization for Modernization of Workshops. However, the historical reasons for the difference in the unit cost will persist until the modernization reaches the farthest corner of the workshops.
OTHER VARIATION FACTORS: The workshop infrastructure facilities, the environment, availability of tools etc, will also cause the variation in the unit cost.
REASONS FOR THE VARIATION IN MATERIAL: The reasons for difference in material cost is due to the following reasons,
1) Policy of the Stores/Material Management
2) Proximity to the market or source of supply.
3) Distance and the transport cost.
4) Storage facilities.
SUGGESTIONS:
1) Introduction of Job or Batch costing system in the workshops will improve the cost control measures.
2) Fixing a proper standard, preferably by the Railway Board in respect of materials to be supplied and man-hours to be utilized for each repair activity.
3) Cost Centres/ Profits Centre approach may be introduced for repair activities for better cost control purposes.
4) Introduction of Zero Based Budgeting and estimating the cost of repair will improve the Inter-Railway comparison of costs.
5) Latest and effective tools and sophisticated machinery may be provided to all workshops.
CONCLUSION: In the days to come, due to economic liberalization and privatization, the railways’ cost responsibility has increased manifold. The dwindling support from the General Revenue may altogether stop at a time. Hence, it is high time; the railways have evolved a scientific costing system to watch as well as to control the costs. Such reduction in the working expenditure will improve the adverse Operating Ratio. The over all efficiency will be toned up due to constant watch on the costs. The corporate objective of reduction in the tariff cost can be achieved with the cost control. Finally, the efficient and cheaper transport would contribute to the welfare of the people of India and the Country.
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