Indian Railway Codes and Manuals-Stores code- Vol-I-Chapter-7 (VII)

 


CHAPTER   VII 

PURCHASE PROCEDURE   :   DIRECT PURCHASES BY THE   ADMINISTRATION 

701.    Agency for Supply.—The Agency of the Stores Department will be used in ordering the supply of all Stores required for the use of the railway, whether for stock purposes or for immediate consumption on works. The Controller of Stores will be the only officer through whom purchases may be made and he will have complete authority to insist upon executive officers drawing stores from stocks, until they are used up before indenting for new stores.   He will scrutinize every indent and decline to purchase, where he considers that the existing stock is sufficient and suitable and his orders shall be final unless he is overruled by the General Manager. 

The General Manager may, however, delegate the powers of the local purchase to the Divisional Railway Manager subject to the provisions as laid down in Para 711-A-S. 

702.    Exceptions.—As an exception to the above rule, the following articles which are supplied in large quantities may, subject to approval by competent authorities, be ordered by the Departmental Officer concerned. 

The General Manager of a Railway may sanction additions to the above list to suit local requirements of his administration.


 703.    Agency for Purchases.—Purchases of Materials for Railway are arranged either :— 

(i)    By the Railway Board or directly by the Railway Administration, or 

(ii)   Through the agency of other Government Departments, viz.:— 

(a)  The Directorate General of Supplies and Disposals —in cases of articles mentioned in Para 801-S and referred to in Appendix VI to this Code, amended from time to time. 

(b)   The Controller of Stationery and Printing—for Stationery and Printing Stores. 

(c)  Government Medical Stores Depots—for Medical Stores. 

Note.—(a) Railway administration are empowered to make direct purchases of medical stores as indicated below :— (i)  Stores not stocked by the Government Medical Depots—full powers of direct purchase. 

(ii) Stores stocked by the Government Medical Stores Depots—Items of stores, indented on the Medical Stores Depots in the prescribed manner, which they are not able to supply within a month and for which non-availability certificates have been issued by the supplying depot may be purchased directly from the open market. 

(iii) In emergencies, whether stores are or not stocked by the Medical Stores Depot—Chief Medical Officers of Railway Administrations are authorised to make direct purchase of medical stores upto Rs. 500/- in each case subject to the restriction that this power is not re-delegated to any lower authority. 

(b)      The power under item (i) and (ii) above may be exercised by the Chief Medical Officer or the Controller of Stores accordingly as the procurement of Medical Stores is entrusted to the former or the latter by the Railway Administration. 

704.    Purchases by the Railway Board.—The Railway Board have reserved to themselves the right to call for tenders and let Contracts for the Supply of the following articles :— 

(i) Locomotives,   carriages,   under frames,   wagons and   certain   nominated   spares/ components therefore.

 (ii) Wheels, tyres and Axles, (iii) Coal, including steam coal, small and soft coke. 

The Railway Board also enter into long term Contracts, from time to time for the Supply of the following Articles to Railways:— 

(i) Rails, fish-plates and points & crossings. 

(ii) Sleepers all kinds—cast iron, pressed steel, prestressed cement concrete and wooden— including pig iron for conversion into sleepers and steel turn out sleepers. 

(iii) Specified track laying/renewal machines and Track Maintenance Machines, (iv) Specified items of stores/equipment for Railway Electrification and Signalling. 

705.    Purchases arranged by the Administration.—The administration may purchase all articles other than those the purchase of which is arranged by the Railway Board or is obligatory through the Directorate General of supplies and Disposals and/or other Government Departments as prescribed by Rules issued by the Railway Board from time to time. 


706.  Direct Purchase of Directorate General of Supplies and Disposal items.—

Except in respect of items of stores for which the Directorate General of Supplies & Disposals has entered in to Rate or Running contracts, the Controllers of Stores may not use the agency of the Directorate General of Supplies & Disposals for any purchase up to Rs. 1 lakh and under in each case. In emergencies where non-acquisition of the article concerned is likely to hold up work, purchases limited to the quantity required to tide over the emergencies may be made, the controllers of Stores exercising these powers upto the limit of Rs. 2 crores for each item. In respect of purchases exceeding Rs. 2 crores but not exceeding Rs. 50 Crore, sanction of the General Manager should be obtained. The Controller of Stores will also decide when for what quantity and in what manner such emergency purchases shall be made.

 

Note. -1. The limit of Rs. 1 lakh mentioned above for direct purchase applies to each case or to each tender containing similar or inter-connected articles purchased at any one time and individual demands should not be intentionally split up to come within the limit mentioned above viz. Rs. 1 lakh.

 

2. All purchases made by the indentors direct, in terms of the above, the value of which exceeds Rs.2,000/- should be notified in the Indian Trade journal with full particulars, name of the stores, date of purchase, quantity, price paid, name of suppliers and whether the stores is imported or indigenous and in the latter case whether cottage and small scale industry product This may be done in the form used by the Directorate General of Supplies & Disposals. Further, total value of all direct purchases upto Rs. 2,000/- which are not published in the Indian Trade Journal, should be reported to the Directorate General of Supplies and Disposals quarterly in regard to purchases made during the preceding quarter beginning with quarter ending 30th September, 1958. The total value should exclude purchases of special items like foodgrains, coal etc. which am not normally purchased through the Central Purchase Organisation.

(Authority Board's letter No. 2008/RS(G)/779/9 dated O6 -02-2009)…acs no. 28 page no. 97

707.   In respect of items of stores which are normally purchased through the Directorate General of Supplies and Disposals and which are covered by Rate or Running Contracts of that Department, the Controller of Stores may, at his discretion, make direct purchases upto limit of Rs. 1 Lakh in each case and not exceeding Rs. 5 Lakh in the aggregate in each case in any one year if the stores are urgently required or can be more conveniently obtained locally or from a nearer station. In emergencies, the same powers as shown in para 706-S may be exercised.

(Authority Board's letter No. 2008/RS(G)/779/9 dated 06-02-2009).acs no. 29 page no. 97

708.    Modes of Direct Purchases.—The Controller of Stores will arrange purchases on behalf of the Administration either through :— 

(a)  Advertised (Open) Tender (special or annual) ; 

(b)   Limited Tender; or 

(c)   Single Tender. 

As may be suitable for the particular purchase, in accordance with the instructions contained in Chapters III and IV on 'Purchase Policy Rules' and 'Contracts'. 

709.   Bulletin and Daily Tenders.—He may also obtain supplies of stores costing less than Rs. 10 Lakh (other than those obtained on annual tender or through the Directorate General of Supplies and Disposals or proprietary articles or stores of special character such as loco and carriage and wagon duplicates), through the medium of Weekly Bulletin or daily tender which are a modified form of the "Limited Tender". These tenders need be sent only to those firms, which are on the approved list for such tenders. In case of daily tenders separate calls for different classes of stores should be issued when necessary. Firms may be allowed ten to fifteen days from the date of issue of the call for tenders in which to submit quotations and provided rates are reasonable, those quoting early delivery may be given preference.

(Authority Board's letter No. 2008/RS(G)/779/9 dated 06-02-2009)acs no. 30 page no. 97

710.   Deleted

711. Local Purchases of Materials of Small Value.—The Controller of Stores may also make local purchases of items of small value, both stock and non-stock, upto Rs. 1 Lakh in each case, subject to the condition that in the case of stock items, the purchases are made only where: -

(i) The normal annual recoupment quantity does not exceed Rs. 1 Lakh in value; or

(ii) The stock of the item is precariously low and the item is urgently required;

and that the quantity is not deliberately reduced with a view to bringing the purchase within the scope of this provision. He will make no purchase without satisfying himself that the price paid is reasonable. For items costing upto Rs. 10,000/-, he may obtain single quotations, but for items costing over Rs. 10,000/-he should obtain quotations from more than one firm and maintain a proper record of such quotations. The current rates quoted should invariably be compared with the last purchase rates and any large differences checked up before making local purchases.

The powers referred to above or other power of local purchases of stores delegated to the Controller of Stores may be redelegated to the Depot Officers, in consultation with the Financial Adviser & Chief Accounts Officer to the extent considered necessary in each case.

Such purchases may be paid for in cash from imprest cash.

Note. -1. No non-stock article for which a standard patterns exists, should be purchased, if it could be manufactured by the Railway.

(Authority Board's letter No. 2008/RS(G)/779/9 dated 06 -02-2009)acs no.31 page no.98

711-A. Local Purchase of Stores by DRM's, CE's(C), CSTEs(C), CEEs(C) of Railways, R.E., M.T.P. (R)s and other Officers not attached to the Stores Department.—The DRMs, CEs(C), CSTEs (C), CEEs (C) of Railways RE and MTP(R)s may, however, subject to the provision of para 701-S make local purchase of items of stores other than those covered by rate/running contracts entered into by the DGS & D and Stationery Stores, upto the limit mentioned below :— 

(i) Purchase of non-stock items.  - Upto Rs.  10,000/- per item but not exceeding Rs. 1 Lakh in the aggregate per month.

(Authority Board's letter No. 2008/RS(G)/779/9 dated 0 6-02-2009)…acs no. 32 pageno. 98

(ii) Purchase of Stock items.—In the case of emergency upto Rs. 5,000/- per item but net exceeding Rs. 50,000/- in aggregate per month in consultation with the conamed Accounts Officer. 

The above powers may be redelegated by the Divisional Railway Managers to Officers under them to the extent considered necessary subject to the overall limit of powers prescribed for the Divisional Railway Managers. 

Note.—Provision regarding prior consultation with Associate Finance may be waived in cases of purchases by the Assistant Engineers in emergencies where they are head-quartered at stations at which the advice of associate finance is not available. 

In regard to the local purchases of rate/running contract items of stores, powers to the extent considered essential may be delegated to the Divisional Railway Managers within the overall annual aggregate limit for each item for the entire Railway. 

(iii) The following officers may make local purchase of stores (other than DGS & D's rate/running contract items and stationery stores) to the extent and in the manner indicated against each :— 

(a)  CMEs, Dy. CMEs,Dy.CEs, Dy. CEs(C), Dy. CSTEs, Dy. CSTEs (C), Dy. CEEs and Dy. CEEs (C) holding independent charge of workshops. 

(Authority: Railway Board’s letter No. 79/FS(I)/PW/7/4 dated 25.3.92) ---acs no.1 -( page no.99)

(i) Purchase of non-stock items.—Upto Rs. 2500/- per item but not exceeding Rs. 25,000/- in aggregate per month in consultation with the concerned Accounts Officer. 

The above powers may be redelegated by these officers to Works Managers under them to the extent considered necessary. 

(b)  Works Managers holding independent charge of workshops : 

(i) Purchase of non-stock items.—Upto Rs. 1,000/- per item but not exceeding Rs. 10,000/-"   per month  in aggregate .

                                                                                                                                                                             Purchase of stock items.—In emergency, upto Rs. 100/- although the figure of Rs. 100/-is as per ACS I95-S it appears there is typographical error, and it should be Rs. 1,000/- per item but not exceeding Rs. 10,000/ in aggregate per month in consultation with the concerned Accounts Officer.

(c)  XEN, DSTE, DEE, DME etc. who do not work directly under the control of the Divisional Railway Managers:— 

(i) Purchase of non-stock items.—Up to Rs. 1,000/- per item but not exceeding Rs. 10,000/-per month in the aggregate. 

(ii) Purchase of stock items.—In case of emergency up to Rs. 1,000/-per item but not exceeding Rs. 10,000/- per month in the aggregate, in consultation with the concerned Accounts Officers. 

The above officers may redelegate these powers to the Assistant Officers under them, if any, to the extent considered necessary in consultation with the concerned Accounts Officers. 

Note.—1. For items costing more than Rs. 500/- quotations from more than one firm shall be obtained. 

2.  No non-stock article for which a standard pattern exists, should be purchased, if it could be manufactured by the Railway. 

3.  Local purchases should invariably be done through Super Bazzars to the extent stocks available there.   In such cases a single quotation up to Rs. 2,000/- per item can be accepted. 

711B. Opening of Current Accounts against Cash Imprest by Stores Officers.—Stores Officer's at Major Stores Depots holding cash imprest for emergent purchases may open and operate "Current Accounts" with the Departmental Bankers or with other Nationalised Banks at places where Departmental Bankers do not have their paying branches, to deposit the unspent balances of cash including recoupments and to make disbursements therefrom for local purchases through cheques, subject to the following conditions :— 

(a)  Current Accounts should be opened only in cases where the imprest amount is more than Rs. 10,000/- each. 

(b)  Current Accounts should be opened against the official designation of the imprest holders and not in their personal names. 

(c)   The amounts of imprest should be reviewed half-yearly so that these are kept at the minimum  in all cases.  Atleast one recoupment of expenditure in a month should be made compulsory and with this end in view, the amount of imprest should be fixed on the basis of 50 per cent of the average monthly expenditure on emergent purchases in each case.  

(d)   Recoupments should be made through Crossed cheques issued by the F. A. & C. A.O. in favour of the imprest holder by his official designation only and not in favour of his personal name. Such cheques shall be deposited in the current accounts. 

(e)   It should be ensured that the imprest amount is utilised only for making payments for emergent purchases permissible under extant rules and not for making normal purchases which should be made through submission of Bills in the usual manner. 

(f)   AH deposits into and withdrawals from the Current Accounts should pass through a subsidiary book and Imprest Accounts should be rendered with reference to the transaction recorded in that book. 

712. Accountal of Local Purchases.—Purchase lists (S. 712) in quadruplicate should be prepared in the form shown below by the Depot Officer for Stores locally purchased. After acceptance of material, one copy should be retained as office copy, one sent to the Accounts Officer, Stores, alongwith cash vouchers for recoupment of imprest, one to the Controller of Stores and the last (after posting in the numerical ledgers) to the Stores Accounts Officer for posting the priced ledgers. Care should be taken to see that only one class of stores is included in each list. The Controller of Stores should check the lists received by him to see that only the class of items mentioned in paragraph 711 are purchased locally; he should also examine from the frequency and quantities of purchases of any item whether it is not advantageous to enter into annual contracts for such items. 

PURCHASE PROCEDURE  

713.   Essential Points.—The procedure adopted for the ordering, inspection and receipt of stores should provide inter alia for :—  

(i) The Accounts Officer, Stores being furnished directly by the officer placing a Purchase Order with a signed copy of the Purchase Order sent to the supplier.  

(ii) The Officer of the Stores Department receiving the stores supplied, furnishing to the Accounts Officer direct a Receipt Note, i.e. a duly receipted copy of the suppliers invoice after it has been posted in the numerical ledgers.  

Note.—Where inspection of supplies of stores is not carried out in the depots in which the stores are stocked, and/or where the accounting work is decentralized, as extra copy of the Receipt Note is called for in order to enable the Inspecting Officer accounting the stores to notify simultaneously the Depots concerned and the Accounts Office.  

714.    Purchase Orders.—Purchase Orders, i.e., orders on the firms for supply of stored, may be placed either by the Controller of Stores or by the Depot Officer of the Main Depot, a form similar to the one shown below being used for the purpose.  

715. In the case of direct purchases by the Railway Administration, six copies of the purchase order should be prepared for distribution to all concerned including those mentioned below. One copy will be retained as office copy and will form the basis of the correspondence file of the Controller of Stores.  

One copy will be sent to the firm.

One copy alongwith Drgs., relevent specifications etc. should be sent to the Inspecting Officer to whom the supply is consigned to pass material on receipt.  

One copy each will be sent to the depots receiving the supply and where the goods are to be finally stored.  

One copy will be sent to the Accounts Officer, Stores, for passing the supplier's bills.  

One copy to Electronic Data Processing Centre.  

Where stores are to be inspected at suppliers premises prior to despatch, a copy of the purchase order shall also be sew to the nominated Inspection Agency.  

Where the Purchase Order is placed by the Depot, the Depot Officer should retain the copy intended for his record, send one copy to the Controller of Stores and distribute remaining copies in the manner indicated above.  

716.    In the case of supplies through the Directorate General of Supplies and Disposals, additional number of copies of the Purchase Order-should be prepared for sending one copy to the Pay and Accounts Officers, Directorate General of Supplies and Disposals Department and two copies to the Directorate General of Supplies and Disposals, Inspection Circle.  

717.    If inspection of the materials is arranged at the point of manufacture abroad, a copy of the purchase order, together with copies of relevant specifications and drawings shall also be sent to the Inspection Agency nominated for this purpose.  

718.    The Supply Form.—The details of the procedure employed for accounting for purchases of stores differ to some extent, according as :—  

(a)   the inspection of stores is carried out in the depot in which the stores are intended to be stocked, or  

(b)   is centralized and is carried out in a spot other than the depot in which the stores are to be stocked.  

718-A. Supplier's Challan.—Supplying firms will submit in duplicate a challan along with the materials supplied by them. A copy of the challan should also be forwarded to the Purchase Officer.  

After receipt of the materials, one copy of the challan duly acknowledged for quantity only (and not quality) will be returned to the supplier with a remark that a proper receipt will be granted in due course for such quantities as may be found acceptable.  

719.    Combined Receipt and Issue Note.—On correct receipt of material, the receiving officer will prepare the receipt and issue note in the Form 719-S.   On the Railways where inspection of stores is not centralised, the form shall be prepared in six parts which shall be distributed in the manner indicated in Para 723.  

On the Railways where inspection of stores is centralised, the form shall be prepared in seven parts which shall be distributed in the manner indicated in Para 729.

RECEIPT   AND   ISSUE  NOTE  

The proposed letter press on reverse of Form 719-S is slightly different from the provisions contained in Paras 727 arid 728. The changes made are indicated below :—  

(1)  The letter press on reverse of Parts I, IV, V and VI slightly modified to incorporate RR No. instead of Credit Note No.  

(2)  Letter press on reverse of Part III modified to :—  

(i) delete the portion relating to delayed supplies as the Receipt Notes arc issued only after delivery period is extended and letter of Extension invariably indicates the penalty, if any, to be levied.  

(ii) Contents of Para 728 have been merged.

720.    Deleted.  

721.    Part Supplies.—Particulars of part supplies, if accepted, should be clearly noted in the Purchase Order Form (S. 714) so that a check can be exercised against excess or short supplies.  

722.    Deleted.  

723.    On Railways where inspection of stores is not centralized, the five parts of Form 719-S will be distributed by the Inspection and Receipt Section as follows :—  

Part I will be retained in the Receipt and Inspection Section as Office copy.  

Part II will be sent to the suppliers as an acknowledgement for the correct receipt of material and for submission to the Account Office with the bill for the value of the material supplied. The Accounts office will not settle a bill unless supported by this form.

 

Part III will be sent direct to the Accounts Office where it will be used for posting the priced ledgers and the Purchase registers and finally for comparing it with Part II (received in support of the Supplier's bill) to guard against possible unauthorised corrections of rates or quantities in Part II.  

Part IV (together with Part V) will be handed over to the Ward stocking the material, after obtaining acknowledgement for the material on Part I. The depot, after posting numerical ledger, will send it to the Accounts Office. In the Accounts Office, it will be compared with the corresponding Part III and endorsed with a remark to that effect. This check ensures that the quantities as extracted into stores Priced Ledgers are the same as those received in the stocking Depots and accounted for by them in their numerical ledgers.  

Part V will be the office record of the stocking ward.  

Part VI will be sent to the Purchase Officer concerned in the Controller of Stores Office.  

Note.— Wherever the Stores Accounts Office has been decentralised and a local unit of the office has been attached to Stores Depots the above procedure should be slightly modified as follows. Instead of Part IV being sent direct to the depot stocking the material, it should be sent to the Central Stores Accounts Office (at the headquarters of the railway) along with Part HI. The Central Stores Accounts Office should sent it to the Local Stores Accounts Office concerned, in support of the "Daily Summary of Credits to Purchases Account (S. 2808)". The depot should post its numerical ledgers from Part V (instead of form Part IV, and pass it on to the Local Accounts Office, instead of retaining it. The Local Stores Accounts Office should use Part V for posting priced ledgers, compare it with Part IV received from the Central Stores Accounts Office, endorse both parts with the remark that they have been compared and return Part V finally to the Depot Office for record.  

Remarks.—Minimum five parts of the receipt and issue note (Form 719-S) are required as explained above and only three copies as mentioned in Paras 719 and 723 will not suffice since as per the scheme contained in Para 723 neither the receipt and inspection section nor the stocking ward will have a copy, which is necessary for their record. Further it is not necessary to sent a copy of Receipt Note to Controller of Stores as the supply position will be available on the computer after the voucher is posted.  

724.    Deleted.  

725.    Deleted.  

726.    Deleted.  

727.    Deleted.  

728.    Deleted.  

729.    Distribution.—On Railway's where receipt and inspection of stores is centralised, the receipt and issue note (Form719-S) will be prepared in seven parts.   The procedure prescribed in Para 723-S will apply mutatis mutandis to distribution of the first six parts. Part VI will be sent to the stocking depot along with Parts IV &V and will be returned by the Stocking Depot after checking the correct receipt of material to the Officer-in-charge of the Inspection & Receipt Depot, in acknowledgement of the stores received.  

Remarks.—Same as Para 723-S. Further routing of Part III through Controller of Stores is not considered necessary as the question of penalty for delayed supplies must be decided in terms of extension of delivery period granted by the Purchase Officer, without which delayed supplies are not to be accepted.  

730.    Orders for Direct Despatch.—All non-stock items in general, and the following items in particular should generally be ordered for direct despatch to indenting officers :—  

(1)   Spare parts of the following non-stock items when obtained from the agents for the plant or passed by the Directorate-General of Supplies and Disposals.  

Oil Engines.  

Air-Compressors  

Pneumatic plant.  

Experimental steam and oil coaches.  

Electrical plant.  

Flood lights.  

Engineering plant.  

Scientific instruments.  

(2)   Stock items obtained on urgent requisitions for special work.  

(3)  Wagon-load lots of metals with a test certificate.  

Wagon load oils and paints passed by Directorate-General of Supplies and Disposals.  

Wagon load, Mangalore Tiles.  

Wagon load, C.I. pipes passed by Directorate-General of Supplies and Disposals.  

Wagon load, Pig Iron.  

Wagon load, Tar, Ashphlat, Road surfacing material.  

731.    Purchase of non-stock items.—Supply of any-Non-stock item that is required by an indentor should be arranged for in the following manner.  

732.    Submission of Requisitions.—Requisitions should be submitted to the depots assigned for that purpose by the Controller of Stores.  The requisition should be made out in duplicate in Form S. 1302, only one item being entered on each Form.  

733.    Scrutiny of Requisitions in Depot.—On receipt of a requisition for a non-stock item in a depot, it should be registered and forwarded to the ward-keeper, incharge of the ward stocking the class of stores mentioned in the requisition to ascertain if there is, any similar suitable stock item to offer as a substitute. Should there be any item considered suitable to offer, a reference should be made to the indentor. Subsequently, if it be found necessary to make a special purchase, the requisition should be endorsed to this effect and forwarded to the Controller of Stores, the date of despatch of the requisition being duly entered in the depot's Requisition Register (Form S. 1307). All such requisitions should be forwarded to the Controller of Stores within a reasonable period of receipt, unless delayed owing the reference having to be made to the Indentor.  

734.    Registration of Requisitions.—Requisitions, which are received from Store depots, or direct from indentors, should be registered in the Controller of Stores Office in a Requisition Register (Form S. 1307) by their original dates and not by the dates of receipt in the Controller of Stores' Office.  

735.    Directorate-General of Supplies and Disposals Items.—Requisitions of all items that have to be purchased by the Directorate-General of Supplies and Disposals should be separated and necessary Indents prepared in duplicate, one copy being retained as office record, and the other copy forwarded to the Directorate General of Supplies and Disposals.  

736.    Items Purchased by the Railway.—The same procedure of calling for tenders, etc. as for stock items should be followed.  

737.    " Forcing" of Stock Items.—The Controller of Stores should refer back to the Indentor if it is considered that a stock item may be used in lieu of a special item. If there are repeated demands for a particular non-stock item, the Controller of Stores should consider whether the item shall become a stock item and if it is found necessary, it should be entered in the price List for the Group.  

738.    Placing of Purchase Orders.—Generally, firms should be instructed to deliver materials to the assigned depots as far as possible. But heavy plant and machinery should in all cases be delivered direct to indentors.       

Purchase Order Forms (S.714), printed on coloured paper should be used for non-stock items. Copies of the purchase order should be endorsed to all concerned, including the following :—  

One copy to the firm, one copy to the Accounts Officer, one copy to the indentor, one copy to the nominated Inspecting Agency if inspection is to be carried out at firms premises prior to despatch and one copy for office record. When deliveries are to be made to an Inspection Depot, one additional copy of the Purchase Order should be prepared for the use of that Depot The number and date of the Purchase Order and name of the Firms should be entered on the Requisition Register (S. 1307) prior to the despatch of the Purchase Order.  

739.    Procedure for payment of supplier's bills in respect of direct delivery orders.—  

(a) In cases where the payment is made by the Indentor's Accounts Officer.—The supplying firms will submit one copy of the bill marked 'Original' and the railway receipt for the consignment directly to the consignee. Another copy of the bill marked "Duplicate, not for payment" shall be submitted to the Controlling Officer of the consignee.  

The Controlling Officer will maintain a consignee wise register of such bills and watch the return of the original copy of the bill from the consignee.  

The consignee after verifying the stores received by him with the relevant Acceptance of Tender/Supply Order/Purchases Order of which a copy would have been furnished to him will endorse a certificate for the quality and quantity received by him and forward the original bill to the Controlling Officer mentioning therein that the receipt has been entered in his numerical ledger and the entry initialed. Any discrepancy in quality or quantity of the stores received by him or the quantity rejected by him, shall be advised to the firm direct, endorsing a copy of his advice to the Controlling Officer and the Purchase Officer.  

The Controlling Officer on receipt of the original copy of the bill, will countersign and forward the same to the Accounts Officer for payment. Any entry to this effect should be made in the register mentioned above.  

The firm's bills should be paid promptly and as far as possible within two months from the date of despatch of the stores and in case the consignment is lost in transit, the consignee should inform the consignor that a claim within the prescribed period should be preferred.  

In case of unusual delay, the suppliers should be advised to bring the matter to the notice of the Divisional Superintendent or the Administrative Officer of the Department concerned, for which purpose the authority to be addressed should be clearly indicated in the Acceptance of Tender/Supply Order/ Purchase Order.  

(b)    In cases where the. payment is made by the Stores Accounts Officer.—The procedure prescribed above should be applied, mutatis mutandis, except that the Controlling Officer will forward the original copy of the bill, duly accepted, to the Stores Accounts Officer instead of to the Indenter's Accounts Officer.  

(c)    Where 90 per cent payments are made to firms against proof of despatch after inspection, the original Railway Receipt should be sent to the Accounts Officer responsible for payment along with 90 per cent bill advising the particulars of despatch to the consignees.   The Accounts Officer after passing the 90 per cent bill should pass on the original Railway Receipt to the Consignee for taking delivery of the consignments.   It should, however, be ensured that there is no delay in the Accounts Office in transmitting the original R/R to the consignee.   The; procedure for the payment of the 10 per cent bill will be as described above.

Note.—In the case of direct delivery stores chargeable to Works, Receipt Notes should be prepared by the Consignee in triplicate in form S. 739. One copy of the Receipt Note should be sent to the concerned Accounts Officer and anotherto the Executive Officer maintaining the Works Registers in terms of paragraph 1440 (A)-E and 1440 (B) E.  

 

 

PURCHASE OF STORES FOR EXPERIMENTAL PURPOSES 

 

740.    Requisitions.—Requisitions in Form S. 1302 for stores for experimental or trial purposes should be countersigned by the principal officer of the department or branch concerned in token of his sanction; otherwise, the requisitions should be returned to the indenting officer for completion in the above respect. 

 

Note.—Where the value of stores requisitioned for experimental or trial purposes is less than Rs. 1,000/-. Requisitions may be countersigned by the Addl. Heads of the departments. 

 

741.    Distinguishing letter for Price List Numbers.—A large letter "X" in red ink, indicating that the stores are for experiment, should be suffixed to the price list number in column 1 of the requisition form.   If no price list number exists, this letter "X" should still appear and a price list number should be allotted by the Stores Department.

 

 

 

742.    Scrutiny of Requisitions.—Before any purchase is arranged for, the Controller of Stores should ascertain whether the particular material asked for is not already available in stores depots and has not already been tried out and pronounced to be unsuitable. 

 

743.    Price Factor.—When the prices of experimental stores are appreciably more than that of the articles they are to supersede, the fact should be brought to the notice of the indentor, who should be asked to state the grounds on which the purchase and trial are justified.   Similarly, when analytical tests of such stores are necessary, the price, compared with the price of articles already stocked should be intimated to the metallurgist, who should certify whether the experimental article contains ingredients or qualities, which justify the higher price. 

 

744. Challans, Receipt Notes, & c, to be stamped 'A'.—Requisitions, Purchase Orders, Challans, Receipts Notes or other documents covering the material for trial should be prominently stamped with the letter "X" to indicate the nature of the stores. Any omission to do so should not be put forward by the consignee, nominated for carrying out the experiment/trial or by the depot which will receive the stores, as an excuse for not maintaining a sharp watch over the receipt of the article and its performance during the trial to ensure that these rules are carefully observed. 

 

745. Ledger Cards of Stores obtained for Trial.—Copies of the Purchase Orders for experimental stores should be forwarded to the consignee or the Depot Officer concerned with a special covering letter which should show all important particulars of the stores and the experiment it is intended for. In the Stores Depots the letter should be filed only under the initials of the Depot Officer after it has been initialled in token of knowledge of its contents by the Assistant Officer, Depot Store-keeper, Sub-Store-keeper, Ward-keeper and Ledger-keeper concerned and certified that the special instructions endorsed on the order, if any, and a remark that "This material is for trial and report" have been recorded on the numerical ledger card in red ink. Similar action will be taken by the consignee in cases where material is directly despatched to him. 

 

746.    Stocking Arrangements.—On receipt of the experimental stores, the depot should keep them entirely separate from other similar items. When issues are made a slip bearing the following remarks should be pasted on the issue note :— 

 

"This material is for trial and report. Please intimate result to the Controller of Stores through the proper channel". 

 

The endorsement should also be made on the Depot Transfer issue notes if the material is to pass to the indentor through more than one depot. 

 

747.    Record of Trials.—The Controller of Stores is responsible for maintaining a record of trials of such stores in manuscript Form No. S. 747 which should show the following information :— 

 

(a)  Description of material; 

 

(b)   Name of suppliers ; 

 

(c)   Special instructions regarding nature of trial and its duration ; 

 

(d)   Delivery period; 

 

(e)  Date material is received by Stores Department; (0  Dates on which position is to be reviewed ; 

 

(g) Final orders passed on the trial. 

 

The Officers conducting the experiments should furnish the Controller of Stores with relevant particulars to enable him to post columns (c), (f) and (g) of the record. The Controller of Stores should follow up all trials with reminders, until the final result of the trial is received and noted in the record of trials. He should see that the final reports on all experimental stores are conclusive and should also watch that no such stores are adopted in super session of the standard one in use until the department making the trial definitely proves their superiority, after taking into consideration the prime cost, life and maintenance charges. 

 

748. Orders on other Zonal Railways/Production Units.—Orders on other Zonal Railways/Production Units should be prepared on ordinary purchase order form (S.714) and distributed as under:— 

 

One copy for the office record. 

 

One copy to the railway from whom the stores are ordered. 

 

One copy each to the depots concerned. 

 

One copy each to the Inspecting officers concerned. 

 

One copy to the Accounts Officer Stores. 

 

One copy to the electronic data processing unit. 

 

Note.—1.  No rate shall be specified in these orders and the words "Book Rate" shall be inserted in the rate column of Form S. 714. 2.   Any modification in quantity, delivery, time, &c, made subsequently should be intimated to all concerned. 

 

Remarks.—To facilitate correct recording of dues and proper accountal of material on receipt it is necessary that these orders are prepared in purchase order forms and routed through E.D.P. centre, instead of preparing these on requisition form (S. 1302). Number of copies required will depend on number of consignees etc. 

 

749. On receipt of issue notes in triplicate for supplies from other Zonal Railways Production Units, Receipt Notes (Form S. 719.) should be prepared and distributed as usual except that Part II should be retained in the Controller of Stores' Office to enable the Transfer Certificate to be verified on receipt from the supplying railway. Two copies of the issue note, duly acknowledged, should then be returned to the supplying Railway. One will be retained as acknowledgement copy by that railway and the other submitted along with the Transfer Certificate for the cost of the stores. 

 

Remarks.—Paragraph slightly modified to delete reference to "foreign" railways and instead other Zonal Railways/Production Units has been inserted. 

 

750.    Deleted. 

 

751.    Deleted. 

 

752.    Deleted. 

 

753.    Deleted. 

 

754.    Deleted. 

 

755.    Deleted. 

 

756.    Deleted.   

 

INSPECTION AND RECEIPT OF STORES PURCHASED BY THE 

CONTROLLER OF STORES  

757. Inspection.—All stores purchased direct by the Controller of Stores should ordinarily be inspected by an Inspecting Officer of the railway. When, however, the Controller of Stores places an order for stores with instructions to despatch the materials directly to an Indentor, the Indentor is responsible for the inspection and for arranging for suitable tests to be carried out where he considers these necessary.  

758-A. Inspectorate of the Directorate General of Supplies and Disposals.—The Controller of Stores should also freely avail of the facilities provided by the Director General of Supplies and Disposals for inspecting and testing of materials, whenever this is required. In such cases, a request should be addressed to the Addl. Director General (Inspection), Directorate General of Supplies and Disposals who will arrange for the inspection. Form No. W.S.B. 65 (S) of that Department should be used for the purpose. A particularly useful facility is the Metallurgical Inspectorate of the Directorate General of Supplies and Disposals which is concerned with the products of Messrs Tata Iron & Steel Co., but it is also entrusted with the inspection of the subsidiary companies such as Indian Wire Products, Indian Cable Co., The Agricultural Implement Co. etc. The laboratory is equipped for all classes of metallurgical testing. The Directorate General of Supplies and Disposals levy departmental charges for inspection and testing in accordance with paragraph 2837-S.  

758-B. Controller of Stores can also avail of the facilities provided by Rail India Technical & Economic Services for inspection and testing of materials, whenever required.  

759.    Government Test House of the Directorate General of Supplies and Disposals at Calcutta.—All classes of chemical tests on coal, oil, paints, acids, etc., all classes of tensile, being, fatigue impact, etc., tests on materials such as draw hooks, screw couplings, pipes and metals from which these are made, all classes of tests on textiles, woven fabrics, thread and yarn, as also tests on cement, etc., are made in the Government Test House at Alipore, Calcutta. The Controller of Stores may also avail of facilities of this and other Govt. Test Houses whenever required at the charges mentioned in paragraph 2837-S.  

760.    Materials purchased Abroad.—The inspection of all materials purchased abroad (except articles of proprietary brands or of small value) offered for forward delivery should be arranged through Railway Adviser London wherever his offices exist or facilities for inspection are offered by him. In the absence of the facility of Railway Advisor, inspection of such materials may be entrusted to Rail India Technical Economic Services. C.O.S. could also use the services of the Inspecting Agencies like Llyods, JIC etc., if considered necessary.  

761.    Procedure of Inspection.—Stores should be checked with the standard specification or drawing on which the order is based. In the rare cases, where orders have been made to a sample a standard sealed sample shall be held by the Inspecting Officer, and stores accepted only if they are up to the standard sample.  

762.    Rejected Stores.—Rejected stores should be removed to a place set apart for the purpose to avoid any possibility of their getting mixed up with other stores. In a stores Depot, the Inspecting Officer should see that this is done in his presence.  

The supplier should be warned that such stores will lie at his risk and that he should arrange for their removal within 21 days from the date of issue of rejection memo. If the stores are not removed withing this period the Administration shall have the right to dispose of such stores as thought fit, at the contractor's risk and on his account and recover ground rent/demurrage charges.  

In cases where full or part payment for the Stores has already been made to the supplier, the rejected stores should not be delivered to them unless :—  

(i) The rejected supply is replaced by an equivalent quantity of acceptable quality ; or (ii) The supplier refunds the amount already received, which fact should be verified by the  

Accounts Officer concerned, or (Hi) The purchaser authorises the removal after taking adequate steps to safeguard the interests  

of the Government. Note.—(1) For contracts finalised by the Directorate General, Supplies & Disposals, this period should  

be taken as "fourteen days from the date of receipt of rejection memo". (2)  For stores where pre-inspection has been done at the supplier's premises/works before despatch and which are rejected by the Consignee, it has to be ensured that a joint inspection has been carried out by the consignee with the representative of the inspecting agency, before rejected materials are returned to the supplier.  

763.    When stores that have been despatched by rail are rejected the following procedure should be adopted:—  

(i) The supplier may take the rejected goods either at the station where they are rejected or  at the station from which they were sent. 

(ii) The supplier shall pay the carriage charges on rejected consignments at Public Tariff Rates from station of despatch to the station where they are rejected. If he elects to take   back the goods at the station from which they were despatched, the goods will be booked to him freight-to-pay at Public Tariff Rates.  

764.    Rejection Memo.—In cases where material is rejected, a rejection form (S-764) should be made out in triplicate by the receiving staff, an entry also being made on the back of the Purchase order (S.714) the rejection forms should be submitted with the challan or Invoice forms (S. 725 or S. 719) to the Officer-in-charge for signature.    One copy should then be forwarded to the Controller of Stores, and one retained as an office record.

765. Rejection Register.—On receipt in the Controller of Store's office, of the Rejection Memo (S.764) containing the details of the rejected material, a gazetted officer should scrutinize the form and differentiate between the really serious cases and those of less importance, the former being entered in the Rejection Register (S.765) while the latter should be filed. This is an alphabetical register of commodities showing the names of firms who have been found to be unreliable in the supply of that particular commodity. The following form should be used for this register. If some firm's name has been recorded in this register in comparatively quick succession, the matter should be taken up with the firm.  

 

766.    Check of Large Consignments of Materials purchased from Firms.—The purchasing railway administration should check with the invoices the contents of wagons of material purchased from firms on the arrival of the wagons at their destination. If the invoices are not available on the arrival of the wagons, the contents of the wagons should be recorded in the Wagon Register (Form S.1215) and compared with the invoices when received. This procedure is to safeguard the railway from any claims for shortages that may be made subsequently by the railway being repudiated by the suppliers.  

767.    Register of Purchase Order.—A Register of Purchase Orders should be maintained by the Receiving and Inspecting Officer in the following form (S. 767)  

(a)  Date of Receipt  

(b)  Serial Number of Purchase Order  

(c)  Group of Stores  

(d)  Last date of supply  

(e)  Receipt Note Number and Date  

(f)   Initials of Clerk concerned and the Gazetted Officer.  

The Register should be periodically examined and delays in supplies taken up with the contracting firms.  

768.    Check of Supplies with Purchase Orders.—When materials are received from suppliers in compliance with the Purchase Order, the quantity should be fully checked by the Receiving Officer with the Purchase Order (S.714) and if accepted after inspection and comparison with the approved sample, specification or design, the receipt should be granted.  

769.    A Reminder System for Overdue Deliveries.—When a firm has not completed deliveries according to the dates stated in the Purchase Orders, the procedure laid down in this and the succeeding two paragraphs may be followed with advantage. One copy of the reminder (S.769) should be sent to the firm. A firm should give an explanation of the delay on this form, and also give a definite date on which the ordered material will be delivered, and return the form to the Depot Officer. A limit of a certain number of working days according to the distance of the firm's headquarters from the depot should be given to the firms for returning Form (S.769). When the firms return Form (S.769) giving reasons for the delay and date by which delivery will be made, the new date, if acceptable, should be entered in the Register of Purchase Orders (S. 767) which should again be referred to when the due date matures. In cases when the firms have not returned the Form (S.769) in due time with explanations regarding the completion of purchase orders, Form (S. 769 A) should be sent to them. In the event of Form (S. 769A) not bringing a reply, Form (S. 769B) should be filled in and sent to the Controller of Stores, who should take the necessary action to deal with the firm concerned as laid down in paragraphs 771 and 772. 

770. In cases where the firms have failed to deliver the stores on the date quoted by them on Form (S.769), Form (S.770) should be sent to the firm for further explanations and return to the Depot Officer. The second extended delivery date should be entered in the register of purchase orders (S.767) if the Depot Officer accepts this second explanation and the new promised date for completion. If delivery is still not made, Form (S.769-B) should be filled in and forwarded to the Controller of Stores to deal with the transgressors.

 771. Register of Defaulting Firms.—On receipt in the Controller of Stores Office of Form (S.769-B) containing the details of a firm's failure to supply in terms of the contract, a gazetted officer should scrutinize the form and differentiate between the really serious cases and those of less importance, the former being entered in the Defaulter's Register (S.771) while the latter should be filed. This is an alphabetical register of firms who have failed from time to time in various contracts, the entries showing the various items regarding which failure has taken place. The form shown below should be used for the register. Should many failure be recorded in the register of defaulting firms (S.771) within a comparatively short period under any one contractor's name, the Controller of Stores should decide whether the firm should be removed permanently from the list of supplier to the railway as being a wholly unreliable supplier, or only suspended., and if so, for what period. The orders passed should be communicated to all officers responsible for purchases who should see that their decisions are strictly adhered to.

772. Risk Purchase and the Method of dealing with Defaulting Firms.—As explained in paragraph 769, a report in form (S. 769-B) will be made by the Depot Officer to the Controller of Stores when a firm has failed to supply the stores wholly or in part, in spite of additional time having been granted for the purpose. It was also explained in paragraph 764 that form (S.764) has to be forwarded to the Controller of Stores when any stores have been rejected. At this stage the Controller of Stores under the general conditions of contract has authority to purchase any quantity of the stores elsewhere at the risk and cost of the defaulting firm should at higher rates have to be paid for the transaction. Should it not be possible to obtain the stores in this manner, the defaulting firm may be debited with a sum of money amounting two per cent per month on the value of the contract as compensation to the railway. These provisions are legitimate under Indian Railways Standard Conditions of Contract, the defaulting firm being held liable in cases of  any extra cost being incurred.  

METHOD OF GRANTING RECEIPT AND MAKING PAYMENT FOR  

STEEL MATERIALS  

773. Payments for materials are as a rule made for the actual quantity received. But in the case of all steel raw materials in the rolled or semi-finished condition the following procedure should be observed in the method of granting receipt and making payments.  

774. Standard Weight.—The weights of such materials computed from their cubic measurements in accordance with the prescribed formula are termed "Standard Weights". As the actual weights in the case of these articles are not likely to conform to the standard weights, limits of "tolerances" over or below which the actual weights may not vary from the standard weights are generally laid down in the specification (I.S.S., I.R.S., B.S.S., DIN etc.) governing the supply.  

775.    Materials with No Tolerances.—In the case of all materials on which there are no tolerances, payment by actual weight should be prescribed in the Purchase Orders.  

776.    Deleted.  

777.   All other materials for which tolerances or standard weight are prescribed in the specification, should be paid for as follows :—  

(a) If the material complies with the required tolerances, payment should be made on the actual weight.  

(b) Where the material does not comply with the specified tolerances, it should be rejected. If for special reasons it is decided to accept it, material above the standard weight plus tolerance should be paid for at standard weight plus tolerance less freight on excess weight and material below the standard weight and tolerance should be paid for at actual weight. The decision to accept the departures from the specification requirements should be based on concurrence having been obtained in writing, from the indenting department or railway concerned.  

778.   Deleted.  

779.    In all cases of payment on actual weight, the bundling or crating material, if any, should be excluded.  

780. In cases of items paid at standard weight plus tolerance (Para 777 (b) refers), the difference between the actual weight and the weight paid for should be brought on to the numerical and priced ledgers by Departmental Stock Verification Sheets (S. 1260) so that the quantities  appearing in the ledgers agree with the ground balance.

Multiple Choice Questions:

Question 1:
Who has the complete authority to insist upon executive officers drawing stores from stocks before indenting for new stores?

  • A) Divisional Railway Manager
  • B) Controller of Stores
  • C) General Manager
  • D) Chief Medical Officer

Answer: B) Controller of Stores

Question 2:
What can the General Manager do concerning the powers of local purchase?

  • A) Delegate powers to the Controller of Stores
  • B) Insist on purchasing from the open market
  • C) Delegate powers to the Divisional Railway Manager
  • D) Cancel the purchase orders

Answer: C) Delegate powers to the Divisional Railway Manager

Question 3:
Which of the following departments arranges the purchase of Stationery and Printing Stores?

  • A) Directorate General of Supplies and Disposals
  • B) Controller of Stationery and Printing
  • C) Government Medical Stores Depots
  • D) Railway Board

Answer: B) Controller of Stationery and Printing

Question 4:
Under what condition can the Chief Medical Officers make direct purchases of medical stores?

  • A) Only with approval from the General Manager
  • B) Up to Rs. 500/- in each case during emergencies
  • C) When the store is not stocked by the Government Medical Depots
  • D) After receiving a non-availability certificate

Answer: B) Up to Rs. 500/- in each case during emergencies

Question 5:
Which items does the Railway Board reserve the right to call for tenders and let contracts for the supply?

  • A) Office Supplies
  • B) Locomotives, carriages, underframes, wagons
  • C) Medical Stores
  • D) General Stationery

Answer: B) Locomotives, carriages, underframes, wagons

Question 6:
In case of emergencies, up to what limit can the Controller of Stores make purchases?

  • A) Rs. 1 lakh
  • B) Rs. 2 crores
  • C) Rs. 5 crores
  • D) Rs. 50 crores

Answer: B) Rs. 2 crores

Question 7:
What is the mode of purchase for items costing less than Rs. 10 lakh?

  • A) Advertised Tender
  • B) Weekly Bulletin or daily tender
  • C) Limited Tender
  • D) Single Tender

Answer: B) Weekly Bulletin or daily tender

Question 8:
What is the maximum value of local purchases of items of small value that the Controller of Stores can make?

  • A) Rs. 1 lakh
  • B) Rs. 10,000
  • C) Rs. 50,000
  • D) Rs. 2,000

Answer: A) Rs. 1 lakh

Question 9:
What should be done with purchases exceeding Rs. 2,000 made by indentors?

  • A) They should be approved by the General Manager
  • B) They should be published in the Indian Trade Journal
  • C) They should be reported to the Divisional Railway Manager
  • D) They should be returned to the supplier

Answer: B) They should be published in the Indian Trade Journal

Question 10:
How many copies of the purchase order should be prepared when direct purchases are made by the Railway Administration?

  • A) Three
  • B) Four
  • C) Five
  • D) Six

Answer: D) Six

11. What change was made to the letter press on reverse of Part III?

A) Incorporated RR No. instead of Credit Note No.
B) Deleted portion relating to delayed supplies
C) Merged contents of Para 727
D) Added a section for penalty calculations

Answer: B) Deleted portion relating to delayed supplies

12. Why is it necessary to have more than three copies of the receipt and issue note (Form 719-S)?

A) To ensure suppliers have multiple copies
B) To provide a copy to the Controller of Stores
C) To ensure the receipt and inspection section and the stocking ward have a copy for their records
D) To comply with international standards

Answer: C) To ensure the receipt and inspection section and the stocking ward have a copy for their records

13. On railways where inspection of stores is not centralized, what is the purpose of Part III of Form 719-S?

A) Retained in the Receipt and Inspection Section as an Office copy
B) Sent to the suppliers as an acknowledgment
C) Sent to the Accounts Office for posting the priced ledgers and purchase registers
D) Handed over to the Ward stocking the material

Answer: C) Sent to the Accounts Office for posting the priced ledgers and purchase registers

14. What should be done with Part IV in centralized receipt and inspection of stores?

A) Retained as an office copy
B) Sent to the suppliers
C) Sent to the stocking depot
D) Sent to the Purchase Officer concerned

Answer: C) Sent to the stocking depot

15. For which of the following items should orders be generally placed for direct dispatch to indenting officers?

A) Common office supplies
B) Experimental steam and oil coaches
C) Regular stock items
D) Items already available in the depot

Answer: B) Experimental steam and oil coaches

16. What should be done if there are repeated demands for a particular non-stock item?

A) Purchase in small quantities only
B) Continue treating it as a non-stock item
C) Consider making it a stock item and enter it in the price list
D) Reject further requisitions for the item

Answer: C) Consider making it a stock item and enter it in the price list

17. How should firms deliver heavy plant and machinery?

A) To the assigned depot
B) Directly to indentors
C) To the nearest warehouse
D) To the central stores office

Answer: B) Directly to indentors

18. Who should be informed in case of unusual delay in payment to suppliers?

A) The Controller of Stores
B) The Consignee
C) The Divisional Superintendent or the Administrative Officer of the Department concerned
D) The Purchase Officer

Answer: C) The Divisional Superintendent or the Administrative Officer of the Department concerned

19. What should the Accounts Officer do with the original Railway Receipt in case of 90 percent payments against proof of dispatch?

A) Keep it as office record
B) Send it to the Controller of Stores
C) Pass it on to the consignee for taking delivery of the consignments
D) Return it to the supplier

Answer: C) Pass it on to the consignee for taking delivery of the consignments

20. In the case of direct delivery stores chargeable to Works, what is the procedure for Receipt Notes?

A) Prepared by the Consignee in duplicate
B) Sent only to the Executive Officer
C) Prepared by the Consignee in triplicate
D) Not required

Answer: C) Prepared by the Consignee in triplicate

  1. Who is responsible for countersigning requisitions for stores for experimental purposes when the value exceeds Rs. 1,000?

a) Indenting officer
b) Principal officer of the department
c) Addl. Heads of departments
d) Controller of Stores

Answer: b) Principal officer of the department

  1. What letter should be suffixed to the price list number in the requisition form for experimental stores?

a) "A" in black ink
b) "X" in blue ink
c) "Y" in green ink
d) "X" in red ink

Answer: d) "X" in red ink

  1. Before arranging any purchase for experimental purposes, the Controller of Stores should ascertain if:

a) The indentor has sufficient funds
b) The material is already available in stores depots
c) The material has been used in other departments
d) The material is within budget

Answer: b) The material is already available in stores depots

  1. If the price of experimental stores is significantly higher than the existing ones, the indentor must:

a) Accept the higher price without justification
b) Reject the purchase order
c) Justify the purchase and trial
d) Seek approval from the Controller of Stores

Answer: c) Justify the purchase and trial

  1. Documents covering materials for trial should be stamped with:

a) "P"
b) "T"
c) "X"
d) "E"

Answer: c) "X"

  1. What should be done with the Purchase Orders for experimental stores in the Stores Depots?

a) Filed without any action
b) Filed with a special covering letter
c) Filed with the initials of the Depot Officer only
d) Filed under the initials of all concerned staff

Answer: d) Filed under the initials of all concerned staff

  1. On receipt of experimental stores, the depot should:

a) Mix them with other similar items
b) Keep them separate from other items
c) Issue them immediately
d) Return them to the supplier

Answer: b) Keep them separate from other items

  1. The Controller of Stores is responsible for maintaining a record of trials in:

a) Form S. 714
b) Form S. 747
c) Form S. 764
d) Form S. 1302

Answer: b) Form S. 747

  1. Which form should be used for orders on other Zonal Railways/Production Units?

a) Form S. 714
b) Form S. 1302
c) Form S. 747
d) Form S. 764

Answer: a) Form S. 714

  1. What should be written in the rate column of Form S. 714 when ordering from other Zonal Railways/Production Units?

a) "Current Rate"
b) "Negotiated Rate"
c) "Book Rate"
d) "Standard Rate"

Answer: c) "Book Rate"

  1. Who is ordinarily responsible for inspecting stores purchased directly by the Controller of Stores?

a) Indentor
b) Addl. Heads of departments
c) Inspecting Officer of the railway
d) Accounts Officer Stores

Answer: c) Inspecting Officer of the railway

  1. Which organization provides metallurgical testing facilities mentioned in the document?

a) Directorate General of Supplies and Disposals
b) Rail India Technical & Economic Services
c) Tata Iron & Steel Co.
d) Indian Wire Products

Answer: a) Directorate General of Supplies and Disposals

  1. In the absence of the Railway Adviser, who may be entrusted with the inspection of materials purchased abroad?

a) Director General of Supplies and Disposals
b) Rail India Technical Economic Services
c) Local suppliers
d) Indenting department

Answer: b) Rail India Technical Economic Services

  1. What should be done with rejected stores to avoid them getting mixed up with other stores?

a) Stored in the same place
b) Removed to a separate place
c) Issued to other departments
d) Sent back to the supplier immediately

Answer: b) Removed to a separate place

  1. How long does the supplier have to remove rejected stores before the railway administration disposes of them?

a) 14 days
b) 21 days
c) 30 days
d) 7 days

Answer: b) 21 days

  1. What must be done if the rejected supply is to be replaced or refunded by the supplier?

a) Rejected stores should be delivered to them immediately
b) The Accounts Officer must verify the refund
c) The Controller of Stores should take no action
d) The rejected stores should be destroyed

Answer: b) The Accounts Officer must verify the refund

  1. What form should be used when material is rejected?

a) S. 714
b) S. 764
c) S. 747
d) S. 1302

Answer: b) S. 764

  1. Who should scrutinize the Rejection Memo to differentiate between serious and less important cases?

a) Depot Officer
b) Indenting Officer
c) Gazetted Officer
d) Accounts Officer

Answer: c) Gazetted Officer

  1. What should the purchasing railway administration check with the invoices on arrival of wagons of material?

a) Price of materials
b) Contents of wagons
c) Supplier details
d) Payment status

Answer: b) Contents of wagons

  1. What should be periodically examined to take up delays in supplies with contracting firms?

a) Rejection Memo
b) Invoice Register
c) Register of Purchase Orders
d) Stock Ledger

Answer: c) Register of Purchase Orders

  1. What should be sent to the firm when deliveries are overdue, requesting an explanation and new delivery date?

a) Form S. 714
b) Form S. 769
c) Form S. 764
d) Form S. 1302

Answer: b) Form S. 769

  1. When a firm has failed to deliver the stores after being given additional time, which form is used to report this to the Controller of Stores?

a) S. 714
b) S. 764
c) S. 769-B
d) S. 1302

Answer: c) S. 769-B

  1. Who decides whether a defaulting firm should be removed permanently from the list of suppliers?

a) Indenting Officer
b) Depot Officer
c) Controller of Stores
d) Accounts Officer

Answer: c) Controller of Stores

  1. What is the purpose of Form S. 765?

a) To maintain the record of purchase orders
b) To maintain the record of rejection
c) To issue materials
d) To make payments

Answer: b) To maintain the record of rejection

  1. When stores purchased from firms are delivered, the quantity should be checked with:

a) Invoice
b) Requisition Form
c) Purchase Order
d) Stock Ledger

Answer: c) Purchase Order

  1. What happens to the bundling or crating material in cases of payment on actual weight?

a) Included in the payment
b) Excluded from the payment
c) Weighed separately
d) Returned to the supplier

Answer: b) Excluded from the payment

 

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Indian Railway Codes and Manuals-The Railway Servants Conduct Rules 1966.

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  THE RAILWAY SERVICES (CONDUCT) RULES, 1966 1.Short title. – (1) These rules may be called the Railway Services (Conduct) Rules1966. (2) They shall come into force at once. 2. Definition. - In these rules, unless the context otherwise requires- (a) ‘Government’ means, in relation to – (i) gazetted officers holding posts in the Railway Board, the President; (ii) other gazetted officers, the Railway Board; (iii) non-gazetted officers, in the Railway Board, the Secretary, Railway Board; (iv) other non-gazetted officers in offices directly under the administrative control of the Railway Board, the Heads of the offices concerned; and (v) other non-gazetted officers, the General Managers of the Railway Administrations concerned: Provided that for purposes of sub-rules (2) and (3) of rule 5, sub-rule (i)of rule 8, sub-rule (i) of rule 10, rule 12, rule 14, sub-rules (1) of rule 15, sub-rule (3) of rule 16, sub-rule (1) of rule 19 and rule 21, ‘Government’ means the Ra...
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Indian Railway Codes and Manuals-THE RAILWAY SERVANTS (DISCIPLINE & APPEAL) RULES, 1968 (D&AR)

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  THE RAILWAY SERVANTS (DISCIPLINE & APPEAL) RULES, 1968 PART – I GENERAL 2. Definitions - (1) In these rules, unless the context otherwise requires - (a) 'appointing authority' in relation to a Railway servant means - (i) the authority empowered to make appointments to the Service of which the Railway servant is, for the time being, a member or to the grade of the Service in which the Railway servant is, for the time being, included, or (ii) the authority empowered to make appointments to the post which the Railway servant, for the time being holds, or (iii) the authority which appointed the Railway servant to such Service, grade or post, as the case may be, or (iv) where the Railway servant having been a permanent member of any other Service or having substantively held any other permanent post, has been in continuous employment under the Ministry of Railways, the authority which appointed him to that Service or to any grade in that Service or to that post; whicheve...
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Indian Railway Codes and Manuals-Accounts code- Vol-II-Chapter-34 (XXXIV)

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  Chapter No. XXXIV CHECK OF TRAFFIC RELATING TO RAILWAYS MATERIALS AND STORES   3401 Returns checked by Accounts Office -This chapter deals with the check and accounting etc. of the following in respect of "Local/Through traffic relating to railway materials and stores for carriage by goods trains on the authority of Departmental Credit Notes. (1) Departmental Credit Notes (COM/C-39 ); (2) Paid statement of Railway Materials and Stores forwarded Local (COM/R. 4 Revised); (3) Paid statement of Railway Materials and Stores forwarded (Through) (COM/R. 5 Revised); (4) Invoices/ Accounts Foil of RMC entries ; (5) Machine Prepared abstract of Railway Materials and Stores received Local (COM/R. 2 Revised); (6) Machine Prepared abstract of Railway Materials and Stores received Through (COM/R. 3 Revised); (7) Carriage bills/Transfer certificate for railway material and stores. 3402 Receipt of Accounts foil of Departmental Credit Note for booking of Railway Materi...
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Indian Railway Codes and Manuals-Accounts Code-Chapter-8 (VIII)

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CHAPTER VIII INTERNAL CHECK A. SCOPE AND METHOD OF INTERNAL CHECK 801. Internal Check - The check exercised by the Accounts Officer on the financial transactions of the railway on behalf of the Railway Administration is called internal check. It is so called to distinguish it from the audit conducted by the Chief Auditor of the Railway on behalf of the Comptroller and Auditor General. The internal check should be conducted with reference to- (a) d Rules and orders issued by the President , the Railway Board, General Managers of Railways and other subordinate authorities to whom the power to issue rules or orders has been delegated; (b) the instructions contained in this and other Indian Railway Codes and any further instructions issued from time to time by the Railway Board; and (c) the recognised standards of financial propriety vide paragraph 116 of Financial Code. 802. Unless an exception is specially permitted in any particular case. All transactions, whether relating to receipts o...
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Indian Railway Codes and Manuals-Accounts code- Vol-II-Chapter-32 (XXXII)

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  Chapter XXXII The Traffic Book 3201 Scope of Traffic Book: The Traffic Book is a compilation which collects and brings to account, under the prescribed heads Coaching, Goods and Sundry Other Earnings, the whole of the traffic earning of a railway, both Local and Through, whether accrued at stations or otherwise. It records the progress of realization of these earnings, the results of apportionment of traffic interchanged with Other Railways and Deposit Private Companies (NGR, JV including SPVs etc) and the progress in the settlement of the balances on these accounts. 3202 Parts of the Traffic Book. The Traffic Book consists of four distinct parts, viz a) Station Accounts: b) Adjustment or Division Sheets or Net Result of Apportionment on the basis of Matrix generated through CAS c) Ledger account of the Home Line; and Abstract of Earnings and Statement of Balances. 3203 Traffic Book, Part A The earning accrued at stations, for the realization of which the home railway is ...
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Indian Railway Codes and Manuals-Accounts code- Vol-II-Chapter-33 (XXXIII)

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  Chapter XXXIII Inspection of Station Accounts 3301 The preceding chapters deal with the check and counting of returns which are submitted by the stations to the Accounts Office. The check of initial records of accounts maintained at stations, which do not come under the scrutiny of the Accounts Office, is carried out by the Travelling Inspectors of Station Accounts who are also responsible to check that the returns submitted by stations to the Accounts Office have been correctly prepared and agree with the initial records maintained at the stations. Travelling Inspectors of Station Accounts or a Cell specifically created in the Traffic Accounts office may be given requisite access and responsibility for checking of online transactions of different Systems such as PRS/FOIS/UTS/PMS Terminals with some specific report generation eg., Exceptional report of missing Roll continuity. Short remittance. Delayed remittance. Distance Masters Junction distance table Commodity...
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Indian Railway Codes and Manuals-Establishment code- Vol-I-Chapter-5 (V)

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  Chapter 5 Leave Rules   501.   Short title. – These rules may be called the Railway Services (Liberalised Leave) Rules, 1949.   502.   Extent of application. – These rules shall apply to (i) Railway servants appointed on or after 1st February 1949; (ii) Railway servants appointed prior to 1st February 1949 who have elected to be governed by these rules; and (iii) others who are brought under these rules by special orders; (iv) a temporary Railway servant who has completed 3 years continuous service shall be entitled, from the date of completion of 3 years continuous service, to the same conditions of service in respect of question of leave (including leave salary) as he would have been entitled to if he held a lien on the post in which he was initially appointed. 502-A.    Definitions                     (1)        In ...
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Indian Railway Codes and Manuals-Accounts Code-Chapter-9 (IX)

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                                                                                                                                                                                                  CHAPTER IX                                                                                     ...
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Indian Railway Codes and Manuals-Stores code- Vol-II-Chapter-19 (XIX)

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  CHAPTER XIX ENGINEERING PLANT RESERVE Custody, Receipt and Issue 1901.  Object of a Reserve.-—In order to avoid losses from forced sales of serviceable and useful plant left over from special works which is likely to be required for future special works, an "Engineering Plant Reserve" may be created on each railway, with the previous sanction of the Railway Board, who will fix the maximum financial limit of such reserve. 1902.  Nature of Plant in Reserve Stock.—The Engineering Reserve would include items of construction plant of the following description.— 1. Air Compressors 2. Air receivers 3. Boilers 4. Boring Plant, special, hand and power driven 5. Concrete mixing machine 6. Cranes (derrick scotch) 7. Dregers, crab 8. Drilling machine, hand or power drives 9. Drilling machines, pneumatic 10. Driving Gear 11. Engines, portable, steam 12. Engines, internal combustion 13. Engines, locomotive, 2 feet gauge 14. Gantries for girder erect...
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Indian Railway Codes and Manuals-Accounts Code-Chapter-1 (I)

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                                                                                         ACCOUNTS CODE VOL-I (1)                                                   CHAPTER-1(I) DEPARTMENTAL REGULATIONS 101 Functions of the Accounts Department. - The Accounts Department of a Railway Administration is mainly responsible for :- ( a) Keeping the accounts of the railway in accordance with the prescribed rules: (b) The check with reference to rules or orders (Known as “Internal Check”) of transactions affecting the receipts and expenditure of railway ; (c) Prompt settlement of proper claims against the railway ; (d) Tendering, as part of its importan...
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