Indian Railway Codes and Manuals-Mechanical code (Rolling stock )-Chapter- 7 (VII)
CHAPTER 7
Execution of works in Workshops/PUs
701.
Works undertaken in Workshops No works other than those chargeable to Demand
Numbers – 05, 06 or 07 (Abstracts C, D and E) may be carried out in a workshop
without an official order from the competent authority(CWE) for the work being
undertaken in the workshops. Detailed estimates for works to be undertaken in
Railway workshops should be prepared in the following cases: a) All works
whether chargeable wholly or in part to Capital/DF/DRF/works of special nature,
such as special overhauls of rolling stock even though chargeable to ordinary
revenue. b) Works undertaken for outsiders, other Railways and other Government
Departments or Ministries. c) Consultancy to industry based on Domain Knowledge
base of the workshop. However, while doing so if use of designs/ drawings
issued by other Railway units or Intellectual Property issue of RDSO, HQ or any
Production unit is involved, prior approval shall be obtained from such unit.
Note: (i) The provision of this Para shall not apply to the manufacture of
rolling stock or other works undertaken in Production Units against orders
placed by the Board for supply to Railways. (ii) Definition of works cover both
works contract & service contract.
702.
Estimates All proposals for the construction of new work or purchase of new or
replacement of the existing assets should be presented along with proper
justification, in the form of Abstract Estimate supported by Rate proof, rate
analysis and Rate of Return in the case of new assets for scrutiny and vetting
by the Associate Finance. Preparation of Estimates, financial vetting of the
same and sanction etc. shall all be done as far as possible on line on the
computer system.
703.
Detailed Estimates should be prepared and shall be sent to the Workshop
Accounts Officer for scrutiny and vetting. Thereafter, the vetted estimate is
processed for sanction of the competent authority.
704.
Estimates for Rolling Stock additions & Workshop M&P Items for
Workshops & Sheds: Estimate for Rolling Stock Addition In the case of
rolling-stock to be built and provide inter alia for the following items being
shown separately: a. Locomotives and Wagons: i. Cost of engines or wagons
including sea freight, etc. in rupees at the prescribed rate of exchange if
obtained from abroad and if obtained in India the likely Contract Price, last
accepted rate etc. ii. Customs duty (if obtained from abroad) iii. Freight
and/or haulage charges when chargeable direct to work as forming part of cost
of stores iv. Sundry stores for erection v. Labour for erection vi. Shop On
cost (for erection) vii. General Oncost (for erection) viii. Percentage charges
for freight on stores (such stores the cost of which is not inclusive of such
charges) ix. Proforma Oncost, to the extent chargeable x. Contingencies xi.
Write-back of the original cost of replaced stock: In the case of replacement,
renewal and abandonment works only xii. Credits for released material: In the
case of replacement, renewal and abandonment works only xiii. D&G charges
b. Coaching Stock: i. Cost of underframes with wheels and axles etc including
sea freight in Rupees at the prescribed rate of exchange, if obtained in India
ii. Customs duty (if obtained from abroad) iii. Freight and/or haulage charges
when chargeable direct to work as forming part of cost of stores iv. Body
fittings and stores including paint obtained for construction, inclusive of
customs charges, if any v. Electrical Equipment vi. Timber vii. Sundry Stores
viii. Labour ix. Shop Oncost x. General Oncost xi. Percentage charges for
freight on stores (such stores the cost of which is not inclusive of such
charges) xii. Proforma Oncost, to the extent chargeable xiii. Contingencies
xiv. Write-back of original cost: In the case of replacement, renewal and
abandonment works only xv. Credits for released material: In the case of
replacement, renewal and abandonment works only xvi. D&G Charges The
proposals shall be submitted in such full and fair measure containing all
information which can be reasonably be provided for appreciation of the
proposal under consideration. The proposals need to include codal life of
assets and reason for procurement along with adequate justification and
administrative approval of competent authority for such procurement/manufacture.
Estimates for Workshop Machinery Estimates for the provision of workshop
machinery should show: a. The cost of each machine, including sea freight in
Rupees at the prescribed rate of exchange, if obtained from abroad; or the
contract price, if obtained in India b. Customs Duty (if obtained from abroad)
c. Freight Charges when chargeable direct to work as forming part of cost of
stores d. Foundation Charges e. Wiring Charges f. Erection Charges g. Shop
Oncost h. General Oncost i. Percentage charges for freight on stores (such
stores the cost of which is not inclusive of such charges) j. Pro forma Oncost,
to the extent chargeable k. Contingencies l. Write-back of original cost: In
the case of replacement, renewal and abandonment work only m. D&G Charges
705.
The provision for timber, body fittings and for sundry stores should be based
on actuals for similar or other vehicles previously built duly giving suitable
allowance for fluctuations in prices and other known changes. Estimates for
electrical equipment should be obtained from the Chief Electrical Engineer.
706.
The financial justification for the work should be briefly explained and a
certificate to the effect that the funds are available should be appended.
Allocation should be indicated clearly. If no provision has been made or the
provision made in the budget is less than the amount of the estimate, it should
be clearly stated that how the expenditure would be met. In every such case,
savings expected in the provision of other items in the budget should be
indicated with reasons for the same. Mere budget certification is not
sufficient for funds to be provided. The officer proposing the work must
certify that funds shall be made available.
707.
Estimates for Renewals and Replacements Estimate for renewals and replacement
of the asset should be accompanied with the details of distinguishing codes and
numbers, date of purchase, age of the asset, original cost charged to capital
and released materials. The note should indicate the floor area or the carrying
capacity of the Rolling Stock and other appropriate information of the Rolling
Stock replaced.
708.
It should be critically examined whether it would not be possible to avoid or
postpone such replacements by adopting methods of ‘reconditioning’ at a cost
that could be justified financially. The total cost of reconditioning of an
asset should be charged to ordinary repairs and maintenance in the same way as
the cost of other repair works. In all cases, in which it is considered
necessary to replace an asset, instead of reconditioning, it should be examined
whether the average annual cost of service of an asset is the sum of Annual
Expenditure that would be incurred in connection with upkeep operation,
maintenance and repairs of the asset; a. The Annual sinking fund payment to the
depreciation fund, and b. The annual interest charges on the cost of the asset.
The prevailing rate of interest should be adopted for the calculation of
sinking fund payment to depreciation fund.
709.
If the expenditure on a work or project is likely to exceed the detailed
estimate amount sanctioned, a revised estimate should be prepared in the same
form and in the same degree of details as in the original estimate and
submitted for the sanction of the competent authority at such time before or
during the work when the engineer in charge of the work is of reasonable belief
that the work may not be completed in the existing estimated cost. The excess
or savings under each sub-head of estimate against the latest sanction should
be elucidated. In cases where the work is in an advanced stage and likely to be
completed before the preparation of revised estimate, the excess should be
dealt with in the completion report, with the prior approval of competent
authority subject to the condition that engineer in charge shall certify that
delay would lead to affecting quality and cost of the work of consideration.
The competent authority should intimate the fact to the Accounts Officer.
Revised estimates should also be submitted in the case of change in scope of
work or material modifications in the sanctioned estimate (Para 1109 to 1113 of
Indian Railway code for the Engineering Department).
710.
The sanction of detailed estimates/revised estimates for works originally
sanctioned at the time of inclusion in the budget and excess over the abstract
cost not within the GM‘s competence should be obtained from Railway Board.
711.
Sanction of the competent authority with the concurrence of Finance at
appropriate level for sanction of Estimate/Revised estimates with variations
and Material Modification should be got done in accordance with the prevailing
Schedule of Powers, advised from time to time.
712.
Estimates of Work for Outside Agencies Works for the manufacture or repair of
articles or supply of material for Public/Private bodies may be undertaken in
Production Unit/Workshops only if the PHOD of Production Unit/Chief Workshop
Manager of Railway Workshop is satisfied that surplus capacity exists in the
Production Unit/Railway Workshop after meeting the Railway's requirement. A
check list as under may be prepared and the proposal should have the personal
sanction of PHOD of Production Unit/Chief Workshop Manager of Railway Workshop
with the concurrence of Associated Finance. a. Is the interested buyer genuine?
b. Can the work be done without affecting current Railway works? c. Is the
price optimum? d. Is the delivery schedule workable? The charges for the work
should be calculated as explained in Para 723 of this Code. The work should be
undertaken only after 20% of the estimated cost of the work or Rs. 50 lakhs,
whichever is less has been deposited in advance by the party ordering the work.
The balance payments regarding the work shall be deposited with the Railways as
per the contract terms approved by the competent authority.
713.
The formal acceptance of the estimated cost should be obtained from the
officers ordering the work, before taking up the works. It should be clearly
stated that the actual cost of the work even if it exceeds the estimate will be
realized. The estimated cost shall incorporate due supervision, direction &
general charges.
714.
Charges for preparation of Estimates For the works ordered by other Govt. or
non-Government Departments private bodies and individuals, charges for
preparation of estimates should be recovered from the parties ordering the work
at a rate of 5% of the total estimated cost for works costing below Rs.10 lakhs
and 2% of the total estimated cost for works costing above Rs.10 lakhs. The
parties should be intimated in advance about the liability to meet the charges
and their acceptance should be obtained before the work of preparation of
estimates is taken in hand. In respect of local bodies and private bodies or
individuals, the estimate preparation charges should be obtained in advance. In
exceptional cases, General Manager of the Railway/Production unit can waive
these charges with the concurrence of PFA. If the work is subsequently taken
up, these charges may be taken as advance payment for the deposit work.
715.
Interest Charges When expenditure chargeable to capital is incurred on works
for use by another Department/Ministry, interest should be charged during the
period of construction, subject to recovery of Interest and Maintenance charges
under the rules in force. The interest charges should be calculated annually on
the total capital outlay up to the end of the previous financial year and half
the outlay of the current financial year. The prevailing rate of dividend
should be charged as rate of interest. The amount recoverable for any financial
year should be adjusted in the books of the Railway as a miscellaneous receipt
under major head “145 – Indian Railway Commercial / Strategic Lines
Miscellaneous Receipts”. Interest should also be charged for the works done by
Railways at the cost of other departments and handed-over to that department on
half the sum of unadjusted outlay at the beginning and end of the year.
716.
Sanction for Works to be executed in Workshops All works of capital nature
undertaken in Railway Workshops should have the prior sanction of G.M. or of an
Officer to whom the powers have been delegated by G.M. Provision of funds must
also be ensured before the commencement of the work.
717.
Verification of Estimates All estimates must be verified by the associate
Accounts Officer before they are sanctioned by the competent authority. The
object of this preliminary check of estimates is to avoid irregular sanction to
expenditure and all the principles of internal check such as propriety of
expenditure, the existence of budget provision, the competence of sanction etc.
must be ensured. The Accounts Officer should also clearly state that incidence
and allocation have been verified. However the submission of an estimate to the
sanctioning authority should not be delayed when there is any doubt as to the
correct allocation of the estimated cost and the question at issue will take
time to settle. In such cases, the approximate allocation between Capital,
Capital Fund, Depreciation Reserve Fund, Development Fund and Ordinary Revenue
may be certified by the Accounts Officer, as far as it is possible for him to
do so, and the sanctioning authority may sanction the estimate, if otherwise in
order, leaving over the question of final allocation for subsequent
consideration.
718.
Certificate of Accounts Verification All estimates verified by the Accounts
Officer should bear a certificate of such verification. The form of the
certificate may be as under: "Incidence and allocation verified (subject
to the check note attached). This requires the sanction of............"
719.
A copy of the estimate as verified by the Accounts Officer, together with a
verbatim copy of his check note, if any, should be submitted to the authority
competent to sanction the estimate. In forwarding an estimate for sanction, it
should be clearly mentioned whether it has been accepted by the Accounts
Officer as unobjectionable. In cases where the Accounts Officer has recorded
any objection, the attention of the sanctioning authority should be drawn to
the Accounts Officer's check note stating the objection.
720.
Sanction to Estimates Advice of all sanctions to estimates by the competent
authorities should be communicated to the Accounts Officer and to the Chief
Auditor of the Railway in such form as may be prescribed by such authorities. A
copy of the sanctioned estimate should also be furnished to the Accounts
Officer.
721.
Record of all Estimates Details of all estimates received in the Workshop
Accounts Office for verification should be available in the Computer system in
the format prescribed by PFA.
722.
Currency of Sanction The sanction to an estimate will ordinarily remain current
for a stipulated period from the date on which it has been accorded according
to the guidelines from Railway Board, unless it has been renewed for and
explicitly indicated for a further term by the acceptance of a revised
estimate. Acceptance by competent authority however, of a budget estimate which
includes specific provision for expenditure on a work which is in progress may
be regarded as reviving for the year in which provision is made, the sanction
to the estimate, regardless of the stipulated limit of period. But if no work
has been commenced on a sanctioned estimate within two years of the date on
which the sanction was accorded, such sanction should be held to have lapsed
and fresh sanction should be obtained from the competent authority by the
submission, of an up-to-date estimate. INCIDENCE OF COST OF WORKS DONE FOR
OTHER DEPARTMENTS / MINISTRIES
723.
Postal Vans The minimum standards for equipment in the postal portion of
coaching stock should be decided by the Railway Board in consultation with the
postal department and should be advised to the Zonal Railways and workshops.
The vehicles are of two types. a. The vehicles owned by Railways. b. The
vehicles owned by the Postal Department. For the Vehicles owned by the
Railways, the Interest and Depreciation charges shall be paid by the Postal
Department. The prevailing rate of dividend should generally be charged as rate
of interest. For the vehicles owned by the Postal Department, Railways shall
recover the POH and maintenance charges incurred by it from the Postal
Department. The Capital cost of the new vehicles constructed for the exclusive
use of the Postal Department on their requisition shall be borne by that
department and the capital cost of vehicles which are also used by the Railways
shall be borne by Railways. In the latter case, the postal department shall pay
interest and depreciation charges.
724.
When the existing vehicles have to be converted fully or partially on the
requisition of Postal Department, they shall pay all the costs, viz., cost of
alteration, the cost of transportation of such vehicles to the workshops and
from workshops to the station where it is to be delivered and interest on
capital cost of the complete vehicles or part of vehicles, so long as they
remain in the exclusive use of Postal Department and not surrendered by them.
725.
When Postal Department formally surrenders the vehicles or part of the
vehicles, the capital cost of which had not been paid by the department, they
shall pay the cost of conversion of such vehicles for the use of general
traffic, the cost of transportation of such vehicles to workshops and from
workshops to the station at which required after conversion. In the case of
payment of capital cost of such vehicles surrendered by the postal department,
the Railways shall refund the sum less the cost of any special fittings and also
less the cost of converting such vehicles for general traffic purposes, to the
postal department. Saloon carriages and other vehicles reserved for the
exclusive use of departments/ministries of Govt. Of India and State Governments
726.
The department / Ministry of Government will be responsible for obtaining the
prior sanction of the competent authority to the provision of any vehicles
reserved for the exclusive use of that department. Design of all rolling stock
should be to Railway standards as approved by RDSO and must receive the prior
approval of Railway Board. The vehicle with electrical and movable equipment
and furniture will be provided at the cost of Railways. The total cost of
construction of the vehicles will be borne on the books of the Railways. The
Department shall pay annual charges calculated on the following lines. i)
Interest @ the prevailing rate of dividend on the present day cost. ii)
Depreciation @ based on the codal life of the asset as prescribed in Finance Code.
iii)Repair & Maintenance charges based on the following 1. Estimate framed
on the latest unit cost for POH and IOH costs 2. Repair/Replacement of special
high value items on actual basis and 3. Running repair charges to be included
as a %age in the haulage charges Depreciation will not be charged on the
vehicles in service for more than codal life. Haulage charges at the prescribed
scheduled rates will also be levied.
727.
When any alterations or addition to the body or to the equipments and fittings
are carried out at the request of the using department, the actual cost of such
additions or alterations shall be paid by the using department. The work should
be undertaken only after the competent authority of the using department
undertakes to defray its actual cost.
728.
When it becomes necessary to replace vehicle or equipment reserved for other
departments, it shall be provided at the expense of the Railways. The user
department shall pay the actual cost of converting the replaced vehicle for use
as ordinary stock, when the replacement is required by the using department
before the expiry of its codal life. Such requirement shall be explicitly
expressed by the deptt./ministry using the vehicles. When a new vehicle has
been built in replacement of existing one, Interest, Depreciation and repairs
and maintenance charges shall be paid annually.
729.
A Proforma Capital and Revenue Account of all such vehicles should be kept.
Along with a common account for all vehicles, a separate account for individual
vehicle shall be maintained in the computer system. The Capital account should
show the Capital cost of the saloon. The revenue account should indicate the
expenditure incurred from year to year by Railway on repairs and maintenance of
the vehicles. The expenditure on empty haulage charges should also be included
in the Revenue account. POH of Rolling stock hired to/owned by Defence
Department.
730.
The mechanical department of the owning Railway is responsible for collecting
the information of POH done on both Railway-owned and defence-owned coaches and
wagons and not the workshops. POH should be carried out on the due date with
the highest priority and proper quality and it shall be noted that the location
and movement of rolling stock is the prerogative of Defence department and
Railway workshops by themselves should not unilaterally move defence-owned
stock. The owner of the stock shall ensure that adequate information is
available about the stock. The Railway numbers for each coach/wagon is allotted
and painted on the coach/wagon. The location and the maintenance requirement
like POH/ROH/IOH due dates shall be available with the base depot as well as
Directorate of Milrail. The MCO organization which has presence all over the IR
network shall be included in the ERP for Rolling Stock so that the information
about each defence-owned coaches and wagons is available promptly. In the case
of Defence owned stock repair & maintenance charges should only be charged
based on the following a) Estimate framed on the latest unit cost for POH and
ROH/IOH b) Repair/Replacement of special high value items on actual basis and
c) Running repair charges to be included as a %age in the haulage charges There
is no need to charge the Interest and Depreciation charges in respect of
defence owned stock. In the case of Rolling stock owned by the IR and hired to
Defence Department the Defence Department shall pay annual charges calculated
on the following lines i) Interest @ the prevailing rate of dividend on the
present day cost. ii) Depreciation @ based on the codal life of the asset as
prescribed in Finance Code. iii) Repair & maintenance charges based on the
following a) Estimate framed on the latest unit cost for POH and IOH b)
Repair/Replacement of special high value items on actual basis and c) Running
repair charges to be included as a %age in the haulage charges The above rule
shall also be applicable on any previous bills/outstanding which are pending on
account of objections/disputes raised by Defence department on the above
grounds. A Proforma Capital and Revenue Account shall be maintained by
Executive Department for all such vehicles to see that the recoveries made from
the Defence department do not fall short of the actual expenditure incurred by
the Railways.
731.
Loaning/Hiring charges for Rolling Stock loaned/hired to outside Parties and
Government Departments The present day replacement cost of the rolling stock
shall form the basis for calculation of hiring/loaning charges for rolling
stock loaned/hired to private parties/Government departments. The cost of the
rolling stock as given in Pink Book for any given financial year shall be taken
as the present day cost. In the event of non-availability of the present day
cost of the rolling stock, the same may be arrived at by taking the last known
cost and multiplying the same with increase in the prices since then. The
present day cost can be worked out on the basis of printed figures as published
by Ministry of Industry for price in case of transport equipments or in absence
thereof by adding 18 points for each year to the index. The present day
depreciated cost for the stock shall be worked out using the formula as per
Para 777 of Financial Code Vol-I.
732.
Loaning/hiring charges of the Rolling Stock a. Interest and dividend charges
shall be worked out on the basis of prevalent dividend rate as advised by IRCA
over the present day cost of the stock. b. Depreciation @ based on the codal
life of the asset as prescribed in Finance Code. c. Loss of earnings to
Railways arisen out of the loaning or hiring of the stock to the outside
parties/Government Departments shall be worked out at 4% of the depreciated
cost of the stock. d. The POH cost shall be worked out at 4% of the present day
cost of the stock uniformly. e. In addition, 5% may be added to cover special
repairs and contingencies. The hire charges of the stock per annum shall be
worked out by summing up the above charges and hire charges per day shall be
worked out accordingly. The hire charges per day should be arrived at by HOD/HQ
of the Executive Department and vetted by FA & CAO/S&W. The operating
and maintenance charges such as the cost of fuel, lubricating oil, crew charges
and haulage charges shall be assessed by Divisional Officer In charge and got
vetted by the Divisional Finance. The estimate of charges recoverable towards
leasing of loco shall be furnished to the Zonal Railways HQ finance along with
Draft agreement for vetting. The following documents shall accompany the draft
agreement. a. Copy of vetted computation sheet of hire charges. b. Copy of
vetted statement of Operating and Maintenance charges, crew charges and haulage
charges. Specific clause for siding charges, Departmental charges and haulage
charges shall have to be provided in the draft agreement. 733. Hire charges for
Plant & Machinery let out to Contractors It should be ensured that the hire
charges for the Railway’s Plant and Machinery hired to the contractor for use
on the work being executed by him shall be decided in advance in consultation
with Finance and incorporated in the special conditions of contract. a. The
cost of plant for the purpose of calculating the hire charges shall be its
present day market value plus freight and all other incidental charges, to
which supervision charges at 12 and 1/2% on total cost will be added. b. The
hire charges per annum will be calculated at the following rates on the cost of
the plant as per (a) above. i. Interest on Capital cost at the ruling rate of
dividend payable by the Railways to the General Revenue. ii. Ordinary repairs
and maintenance charges at 5% iii. Special repairs and maintenance charges at
10% iv. Depreciation charges at the rates mentioned in Para 3505 of the Way and
Works manual. v. An additional 10 % on the total of I & IV above to meet contingencies.
The hire charges per day shall be arrived at by dividing the annual hire
charges vide (b) above by 270, which shall be assumed as number of working days
in a year for this purpose. These hire charges shall be payable from the day
the plant is handed over to the hirer to the day it is returned by the
contractor to the Railway administration. However, during this period, if the
plant remains out of order or reasons beyond the control of the hirer or is
sent for periodical overhaul, such periods shall not be counted for levy of
hire charges provided a certificate to that effect is given by the Divisional
Officer in charge.
734.
Sale of Heritage Rolling Stock Heritage rolling stock has been defined as
follows: a. All types of steam locos b. All NG coaches and wooden
body/saloons/special coaches of all gauges. c. Oldest of a particular
kind/class/special purpose rolling stock. d. Rolling stock over 100 years old.
e. Rolling stock identified/selected to be of special significance. The sale of
heritage rolling stock shall be initiated only by the Heritage Directorate. The
sale shall be processed further as per extant instructions. Heritage rolling
stock shall be offered for sale to other Government/Quasigovernment, private
institutions/Individuals in the country and abroad, if it is not required by
the Railways. For executing the sale of these rolling stocks, following
procedure shall be followed, which is subjected to modification from time to
time by Railway Board Circulars. Sale to
educational institutions/Museums/Government bodies/Trusts as per·
extant instructions, at 50% of the scrap value without adding overhead charges,
profit and antique value. This shall be applicable for sale within the country.
Further waiver in sale price can be considered in specific cases by the
competent authority in consultation with associate finance. Sale to private rail-road companies
/Institutions/Trusts/Individuals shall be· made at full
scrap value without adding overhead charges, profit and antique value. Special
relaxation or discount shall be offered in deserving cases by the competent
authority in consultation with Associate Finance. In all cases, the cost of
transportation/restoration shall be borne by the· purchaser in
full. All cases of sale to parties abroad
shall be referred to Railway Board for a· decision.
735.
Sale of In-service MG rolling Stock The following are the guidelines for sale
of surplus MG rolling stock for the clients abroad. Sale of surplus Rolling
stock to be done at 125% of scrap value subject to the following conditions,
which are subjected to modification from time to time by Railway Board
Circulars: a. Stock is surplus and condemned. b. Replacement of stock is not
required. c. Components of rolling stock not being removed but can be used by
IR. d. The stock is not required to be kept from heritage point of view. Taxes
and duties will be charged extra as prevailing. The cost of POH and
modifications of the rolling stock in Railway Workshops will be charged extra
if required by the purchaser.
736.
Methodology for Sale The in-service rolling stock (both conventional as well as
DPRS) identified for sale is to be processed for condemnation of competent
authority. The undermentioned action shall follow condemnation. a. Necessary
write-back adjustments to Capital shall be made on sale of the rolling stock
(both conventional as well as DPRS). b. Necessary deletion advice shall be
issued by the rolling stock (both conventional as well as DPRS) section. c. The
sale shall be processed through Stores Department and the sale value shall be
credited to the owning Railway. The cost of reconditioning /refurbishing shall
be assessed and the estimate shall be vetted by the associate finance. The work
shall be undertaken on Deposit terms and hence the estimate prepared keeping in
view the instructions relating to the preparation of Deposit Work estimates. In
the event of considering grant of any concessions in the charges for the work
executed on Deposit Work terms, concurrence of PFA and sanction of GM shall be
obtained. Necessary deposit shall have to be made by the purchaser before
commencing the work. Estimate preparation charges at prescribed percentage as
stated in Para 715 shall have to be levied and collected in advance, which may
be taken as advance payment if the deposit work is taken up. The second-hand
value of the Rolling Stock (both conventional as well as DPRS) shall have to be
assessed as per the codal provisions and the estimate thereof have to be
processed through Stores Department for the concurrence of Stores Accounts and
sanction of GM. Two separate proposals, one for reconditioning and POH/Schedule
attention and the other for the sale value of the Rolling Stock (both
conventional as well as DPRS) have to be processed simultaneously and the total
cost shall be arrived at duly keeping in view the appropriate profit.
737.
Execution of Works All works in workshops should be carried out as rapidly as
possible. Due importance should be given to the allocation of funds. The
general rule In regard to the building of rolling stock is that all stock
should be built as per the designs approved by the Railway Board. Prior
approval of Railway Board is necessary for building of stock to new designs and
no expenditure should be incurred without the approval of Board. In the case of
coaching stock, all designs whether already approved by Board or new ones,
should be submitted for the prior approval of Railway Board. No expenditure
should be incurred on materials and on any work being taken in hand until the
Board‘s approval is obtained.
738.
The expenditure in a workshop needs to be analyzed for cost of labour,
materials and on-cost. The initial records of wages and materials are to be
maintained separately in the manner laid down in Chapter-7.
739.
The shop or section of each shop is the lowest unit of workshop organization
for the purpose of maintaining the records of initial accounts. The expenditure
should be analyzed shop by shop, even if the work on the same job is being
carried out in more than one shop, since the initial accounts of each shop are
maintained separately. It is convenient to bring the shops in to the system of
work orders. The work order numbers should be allotted by distinguishing
numbers coupling with the numbers for the standing work orders.
740.
Analysis of expenditure Apart from analyzing the costs as prime costs and
overheads as laid down in Chapter-7, the expenditure should also be analyzed
account-head-wise, viz., Capital, Capital Fund, DRF, Revenue etc. Both
identification and classification of expenditure in a workshop are required for
billing and recovery of expenditure incurred from another department or
division of the Railways or from outsiders.
741.
Work-order system Work order system in the workshops should clearly identify
the activity and allocation to ensure correct work order booking and should
reflect in the Workshop General Register against the relevant activities
performed.
742.
The essential features of any good work order system are conformity with the
accounts classification and elasticity. The system of work orders should
provide for the minimum analysis required and further analysis by the orders of
the Railway Board issued from time to time, by the need for inter-departmental
adjustment and by the need for minimizing the waste.
743.
Revenue Standing Work Orders The work orders which have to conform to the
revenue accounts classification should be numbered in eight digit code. The
work order system in practice in certain workshops/PUs have undergone changes in
order to further stream line the same and identify the work order with correct
Accounts allocation. Hence the work order numbering system stated in paras 843
to 848 may require further revision. Hence, Planning organization of workshops
may issue various work orders as per the concordance/ work order master, to be
prepared every five years with the concurrence of associate finance. Same shall
indicate the basis for allocating different type of work order numbers. General
guidelines for the prevailing work order system subject to changes to be
introduced from time to time, are as under. a. First digit represents the
Division code. Division code should be allotted to each division of each Zonal
Railways accordingly as per the local requirements. b. Second digit represents
the Department code. Identical department code suitable to all Zonal Railways
should be allotted as below. 0 for Construction Organization 1 for Traffic and
Commercial 2 for Electrical 3 for Mechanical 4 for Medical 5 for General,
Personnel, Accounts and Head Quarters 6 for Security 7 for S & T 8 for
Stores 9 for Works c. Third digit represents the last digit of the Year. d.
Fourth digit represents the Workshop Code. e. Fifth & sixth digit
represents the shop code. f. The last two digits represents the serial numbers
of the work order. Each work order should be identified with the name of the
work. The correlation between work order and revenue allocation should be based
on the name of the work primarily instead of work order number. That is, if we
type the name of the work, the software system should automatically identify
the Revenue allocation to which the expenditure is charged. Serial numbers
shall begin as ‘001’ on 1st of April every year.
744.
Other Standing work orders The following are certain classes of standing work
orders other than the Revenue standing work orders. a. On cost work orders b.
Raw material work orders c. Manufacturing Work orders d. Part, group and Repair
Work orders e. Inter-departmental work orders
745.
On-cost Work Orders Expenditure incurred on labour and materials which cannot
be directly booked to any particular work order can be directly charged to on
cost work order. Careful analysis should be carried out about the on cost
expenditure to have an effective control over such expenditure and to have
correct distribution. The distribution of on cost expenditure should be done on
the basis of percentage estimated after the preparation of annual on cost
budget. The actual on cost expenditure should be compared with the percentage
estimated in the budget. The on cost work order will be of eight digit codes.
a. First and second digits ‘50’ would represent on cost work order. b. Third
digit represents the last digit of the year. c. Fourth digit represents the
Workshop code. The workshop codes now in existence in each zonal Railways shall
be adopted for this purpose. d. The fifth & sixth digit represents the shop
code. e. The last two digits represents the serial number of on cost work
orders. The workshop in charge shall list out the items of works under which
the labour and material expenditure chargeable to on cost as per the local
requirements.
746.
Raw material stock work orders The cost of raw materials drawn from Stores
stock and purchased from open market should be booked to the set of work orders
opened to accommodate the cost of raw materials, instead of booking directly to
the repair or manufacturing work orders. A separate work order should be opened
for booking raw material drawn by work shop every day. The same work order has
to be cleared by debiting the consumption to the relevant Revenue/ Capital /
manufacturing work order with corresponding credit to the Raw material work
order. The standing work order for raw material should consist of eight digit
code. The balance under this work order represents the shop floor stock lying
in the sub stores and will be part of WMS balance. a. The first and second
digits ‘39’ would represent the stock work order. b. Third digit represents the
last digit of the year. c. Fourth digit represents the workshop code. d. The
last four digits represent the serial number of stock work order and will be
designed by respective CWMs while issuing booklet for work orders. The issue of
raw materials to the work orders shall be evaluated and fed in the computer for
generation of Stores sub-ledger and WGR.
747.
Manufacturing work orders or Division work orders These work orders shall have
eight-digit codes as under: a. First digit represented by ‘6’. b. The second
digit represents the Departmental code as given in Para 743. c. Third digit
represents the workshop code. d. Fourth digit represents the shop code. e.
Fifth digit represents the Division code. The codes of divisions allotted in
each Zonal Railways may be adopted for this purpose. Other Zonal Railways shall
be represented by ‘9’. f. The last three digits represent the serial number of
the work order. The expenditure incurred on manufacturing work orders
undertaken for divisions and departments of Home Railway and other Government Railways.
748.
Part, Group and Repair Work Orders The manufacture of similar items required by
various consignees of Home Railway, other Government Railways and Stores
Department shall be grouped together and shall be undertaken. The expenditure
incurred on such works should be booked to these work orders and bills may be
raised on the consignees as per the estimated rate arrived at for each
financial year. The eight digit code will be as under: a. First digit denotes:
1-first half of the year (i.e April to September) (or) 2- second half of the
year (i.e October to March) b. Second digit denotes Last digit of the year code
c. Third digit represents: 0- fresh order (or) 1- repeat order d. Fourth digit
represents – Workshop Code e. The last four digits represent the serial number
of the work order
749.
Work Order Register All works carried out on requisitions placed on the
workshops should be carefully registered and serially numbered in Work order
Register. Separate registers shall be maintained for different departments and
divisions with utmost care. The work order register shall provide all relevant
information such as Date of commencement, Date of completion, description,
Quantity, head of allocation to be so charged, by whom ordered etc. This
register should be maintained on the computer and shall be accessible as a
‘read only’ file to all concerned.
750.
Copies of all work orders should be made available for verification to Workshop
Accounts Office. The Accounts office should check them to see that the numbering
has been correctly done, that the work has been sanctioned by competent
authority, that funds are available and that all other relevant rules and
orders have been observed.
751.
Before issuing a Work Order, the following aspects must be ensured: a. It
should be seen that the acceptance of estimated cost has been obtained for the
works undertaken for Government departments, where charges are to be adjusted
through transfer transactions. b. It should be ensured that the sanction of
PHOD of the executive department has been obtained and the estimated cost has
been deposited for the works undertaken for Railway employees. c. For works
undertaken for outsiders, whether the work has the sanction of competent
authority, the estimated cost has been deposited in advance, and in the event
of excess over the estimated cost, the acceptance of the party to pay the
excess before the delivery of the item has been obtained. No formal work orders
need be issued in the case of repairs and maintenance works and the indenting
department is responsible for sanction and availability of funds.
752.
Advice of Completion It should be ensured that there is no delay in booking of
charges under work orders and issuing of completion advice. It is one of the
important duties of the Accounts Office to see that the procedure for chasing
delays and irregularities is effective.
753.
Monthly Statement of completed work orders When a work order is completed, it
should be returned by the shop to the office of issue with the date of completion
marked thereon. A statement of completed work orders will be generated by
Accounts office as part of MIS, Workshop Accounts Officer shall nominate the
supervisor who would be responsible for ensuring that all expenditure relating
to such completed work orders has been correctly booked and accounted.
COMPILATION OF THE WORKSHOP MANUFACTURE SUSPENSE ACCOUNT
754.
Work shop Manufacture Suspense Account All expenditure incurred by workshops in
respect of Production and maintenance of Rolling stock are routed through this
account. Since the funds for the above activities are met out of Railway’s own
resources this may be treated as Capital Fund and payment of dividend to
General Revenues may be dispensed. If in any financial year, when the Capital
Fund is not operated, the expenditure may be charged to the Capital.
755.
Workshop General Register The Labour and Stores Sub-ledgers having been
totalled, the totals of (a) Labour charges and (b) Stores and Miscellaneous
charges, for the month relating to each work-order should be transferred to
Workshop General Register (M.755) and posted under the relevant work-orders,
shop by shop, care being taken to see that no item is left out in posting.
Under mechanized system, Labour charges and the Stores and Miscellaneous
charges for the month relating to each work-order as produced, by the machine
tabulations as also direct Man-hours should be transferred to Workshop General
Register and posted under relevant work-orders, shop by shop, care being taken
that no item is left out in posting. On completion of posting in respect of
workorders, the totals for the month as also to the end of the month are struck
for each work-order under element of cost and direct man-hours. There should be
a linkage between AFRES, PRIME, Workshop Information System for labour element
and MMIS for stores element as far as possible. For a better understanding, a
flow diagram indicating the flow of accounting data through various documents
is given in Annexure 8.1. WORKSHOP GENERAL REGISTER Form M.755 W.O.
No.......... Particulars...........................Estimate Ref...... For whom
executed. Authority............................. Estimate cost....... Head of
Account…….. Date of commencement…….. Date of completion…… Debits Credits Months
Shop No. Direct ManHours Direct Labour Incentive Bonus Stores Total 1 2 3 4 5 6
7 Overheads Work on cost Admin on cost/ Proforma on cost Total On cost Grand
FOH AOH TOH SOH Total Labour Stores Total Total 8 9 10 11 12 13 14 15 16 17 18
Credits References Amount Adjusted Balance out standing 19 20 21 Note: Columns
1 to 7 and 18 to 21 are common to Production Units and Zonal Railway Workshops.
Columns 8 to 12 related exclusively to Production Units and columns 13 to 17
relate to Zonal Railway Workshops.
756.
Check sheet Simultaneously with the posting of Workshop General Register, a
summary of sub-ledgers (labour and stores) called Check Sheet should be
prepared in form M.856 given below. This is done with a view to Checking
correctness of the posting of labour and stores, including miscellaneous
charges, in Workshop General Register and to ensure that the amounts are
correctly transferred to the outturn statements M.760 Parts I and II against
each work order operated upon in the workshop during the month The check-sheet
should be totaled down and cross wise. The grand total of the check-sheet for
the month under 'labour' should be equal to the total of the debits appearing
in the Labour Schedule and that under 'Stores' should be equal to the total
debits appearing in the Stores Summary Subledger (M.516). In the case of
computerized tabulations, simultaneously with the posting to Workshop General
Register, the stores and labour charges together with on cost/ overheads
thereon (but excluding direct man-hours) as available in various tabulations
are posted independently in the check-sheet for each work order in the same
detail as in the Workshop General Register. On completion of posting, the
totals for the month are struck for each work order under different element of
cost and reconciled with those appearing in the Workshop General Register to
ensure correctness of the postings. Form M.756 CHECK SHEET SHOP…………… Work Order
No. Direct Overheads Labour Incentive bonus Stores Total FOH AOH TOH SOH Total
1 2 3 4 5 6 7 8 9 10 Work on cost Admin on cost/Proforma on cost Total On cost
Grand Total Credits Labour Stores Total 11 12 13 14 15 16 17 Note: Columns 1 to
5, 16 and 17 are common to Production Units and Zonal Railway Workshops.
Columns 6 to 10 relate exclusively to Production Units and Columns 11 to 15
relate to Zonal Railway workshops exclusively.
757.
Calculation of On-cost Charges (a) Works On Cost In cases where mechanized
tabulations for labour and stores etc. charges are not used, the following
procedure should be adopted for calculation of works oncost. In case of
mechanized tabulations available for posting of workshop general register the
overhead charges will be available for posting in the Workshop General Register
and the check sheet from machine prepared tabulation. After all the sub-ledgers
have been posted in the Workshop General Register, the works oncost charges
(both labour and material) in respect of each of the work orders, except the
work orders for oncost should be calculated on the direct labour charges
including incentive and OTA payments booked against each work order, at the
percentage rates (for labour and material) in force for the time being for each
shop (Paragraph 725) and posted in the appropriate column of the Register
(M.755). The total of works oncost charged to the various work orders on a
percentage basis should be booked as credits under the oncost work orders, the
actual charges under the latter being first summarized at one place. The
difference between the debits and credits under the oncost work orders should
be adjusted against the final heads of account for 'Overcharges and
Undercharges— Oncost' in abstracts C and D (See paragraph 726). (b) Proforma on
cost The word ‘Pro-forma Oncost’ commonly known as indirect charges intended to
include all oncost which is not included in the cost of work done in railway
workshops but which should be so included in commercial costing. This consists
either of expanses charged directly to final heads of working expanses (e.g.
General superintendence, depreciation) or of charges not included in the
working expenses of the railway Annual Budget of Pro Forma On cost—An annual
budget of Pro Forma Oncost should be prepared for each railway workshop and
submitted to the General Manager through the Prinicipal Financial Adviser on or
before the 1st December each year. This should be based on figures from January
to December of the current calendar year, i.e. on 'actual' as far as available
and on 'estimates for the remaining period, and should be modified by known
changes in conditions and other relevant factors. This shall show the - annual
estimated charges attributable to:— (1) Supervision. (2) Contribution to
Provident Fund and Gratuity special contribution to provident Fund and
pensioner liabilities in respect of works staff. (3) Repairs and Maintenance.
(4) Interest (5) Depreciation. (1) Supervision:—The pay leave salary,
allowance, contribution to Provident Fund, gratuity, Special contribution to
Provident Fund, Annual contribution to Staff Benefit Fund &. c. of all
personnel of the Mechanical Department directly concerned with each workshop
(i.e. including only a share of the Chef Workshop Engineer and his Headquarters
staff but including whole or the Deputy Chief Mechanical Engineer, Workshops,
and all establishment under him; and of the Accounts, Electrical Engineering,
Stores Cash and Pay, Railway Protection Force, Medical & c. Departments,
whose duties are concerned directly with the workshop, should be included under
this head. The amount of rents, rates and taxes in respect of workshop
buildings, offices & c. should also be included under this head. (2)
Contribution to Provident Fund, Gratuity-Special Contribution to Provident
Fund, Pensionary Liabilities in respect of works staff:- Annual Contribution to
Staff Benefit Fund in respect of Works Staff and the expenditure to Provident
Fund and Gratuity/ Special Contribution to Provident Fund pensionary
liabilities in respect of all Workshops Stall both supervisory and labour, the
annual Contribution to Staff Benefit fund in respect of such staff and the
annual net expenditure in running the canteens attached to workshops should be
estimated as closely as possible. The amount of provident fund contribution
payable should be taken as equivalent to the total amount of the deduction in
the shape of provident fund (under new pension scheme)subscriptions and the
amount of gratuity may be worked out based on the current year’s actual disbursement
and the number to retire in the next budget year. The amount of pensionary
liabilities in respect of pensionable staff should be the amount shown against
pension fund under Demand No. 14-Abstract M. The Per capita pension is to be
calculated by dividing the amount under appropriation to Pension Fund by the
actual number of employees of a Zone/PU at the end of previous financial year.
(3) Repairs:—The amount of expenditure on repairs and maintenance of workshop
buildings, plant and machinery should be carefully estimated. (4) Interest:—The
interest on total outlay on land, buildings plant and machinery should be
calculated at prevalent rate of dividend payable by the railways to the general
revenues as may be fixed from time to time. The total outlay being worked out
or estimated as accurately as possible. (5) Depreciation:—The depreciation on
buildings (including floors) should be calculated at two per cent on the total
outlay.The depreciation of plant and machinery should be calculated at five per
cent on the total outlay. Distribution of Pro Forma Oncost.—The percentages of
the total Pro Forma Oncost under the five heads, indicated above, to the total
labour of the whole workshop, should then be worked out.These percentages will
vary from workshop to workshop and from year to year, owing principally to
alterations in the total outlay, the variations in the quantum of the total
labour in the shops and any changes in the rates of interest charges to be
applied. Inclusion of Pro Forma Oncost in the Cost of Work.—The percentages of
Pro Forma Oncost, as worked out above for each workshop, will be brought into
use whenever it is found necessary to include one or all of these items of
Oncost in the cost of the work, e.g. when work is undertaken for private
parties, other Departments or Ministries of Government or on capital account .
When work done is of capital nature, the cost of the work should include all
items of Proforma Oncost other than supervision, interest, annual contribution
to Staff Benefit Fund in respect of works staff and the net expenditure in
running the canteens attached to Railway workshops irrespective of the fact
whether the cost is charged to Capital, Depreciation Reserve Fund, Development
Fund. Accident Compensation, Safety and Passenger. Amenities Fund. No Proforma
Oncost should be levied on works chargeable to Ordinary Revenue, Accident
Compensation, Safety and Passenger Amenities Fund and Development Fund. When
work is done for other Departments or Ministries of Government, other railways
or for the public, all items of Pro Forma Oncost are chargeable but the General
Manager may in exceptional circumstances, waive in full or in part the levy of
such Oncost, in consultation with the Financial Adviser and Chief Accounts
Officer, for reasons that should be recorded.
758.
Out-turn Statement The total (debits) for the month, in respect of each work
order under labor Stores and On-cost charges and the grand total should be
struck in the Workshop General Register and an Outturn Statement (M.858) should
then be prepared showing all the work orders, whether in hand, or completed in
the workshops, the outlay on which is awaiting adjustment; and the expenditure
that has been incurred on each of them. This statement is necessary for the
purpose of charging the total expenditure incurred in the workshops to the
account heads concerned. WORKSHOP OUTTURN STATEMENT Form M.758 For the Month
of...................... 20……. Previous Expenditure Work Order No. Allocation
Authority For whom executed Particulars Estimates 1 2 3 4 5 6 Previous
Expenditure Charges during the month Direct Charges Opening Balance Adjusted
during the month Unadjusted Direct Labour Incentive Bonus Direct Stores 7 8 9
10 11 12 Charges during the month Works Oncost Overhead Charges Labour oncost
Stores Oncost Factory Overhead Administrative Overhead Township Overhead Stores
Overhead 13 14 15 16 17 18 Admin on cost/ Proforma oncost Grand total Credits
during the month Closing Balance 19 20 21 22 Columns 1 to 12 and 20 to 22 are
common to Production units and zonal railway workshops. Columns 13 to 16 are
only for Production units and Columns 17 to 19 are only for zonal railway
workshops. Compiled by..................Checked by Accounts Officer
759.
The postings in the Outturn Statement of the charges for the month against each
work order should be compared with those in the Check-Sheet. This comparison
will bring out errors, if any, in the posting of the Workshop General Registers
from the various sub-ledgers, as also of the Outturn Statement from the
Workshop General Registers, which should be investigated and rectified.
760.
The Outturn Statement (M.758) should be prepared in two parts- Part I and Part
II. Part I will show all outlay (separately against each work order) adjustable
during the month and Part II will show outlay on works in progress and
completed works which are awaiting acceptance by the parties ordering them.
761.
Part I of the Outturn Statement should be arranged and posted under the
following heads:— Part 1 (Adjusted items) I. Home Line Capital Works— a.
Locomotives (Capital 2110) b. Carriages (Capital 2130) c. Wagons (Capital 2140)
d. Machinery & Plant (Capital 4100) II. Depreciation Reserve Fund Works
III. Development Fund Works IV. Works chargeable to Open Line Works—Revenue V.
Capital Stores Suspense— (i) Manufactured Stores (ii) Returned Stores VI. Home
Line Revenue Accounta. Locomotives (C220-260: 320-360; 520-560) Showing No. of
Units and their Units cost. b. Carriages (D 220-260: 420-460) showing No. of
Units and their units cost. c. Wagons (D320-360) Showing No. of Units and their
units cost. d. Plant & Equipment (E.320; E350) e. Service Motor Cars (E.
362). f. Furniture and Office Equipment (E. 361) VII. Work done for— a.
Divisions. b. Home Line Departments. c. Foreign Railways. d. Other Government
Departments & Public bodies. e. Home Line Railway Employees.
762.
The following classes of expenditure are adjustable during the month in which
the expenditure is incurred:— a. Expenditure on Works of Mechanical Department
charged to Capital, Capital Fund, Development Fund and Depreciation Reserve
Fund. b. Expenditure on Revenue Works of Mechanical Department. c. Expenditure
on Deposit Works. d. Expenditure debitable to other Railways in respect of
repair to their Rolling Stock. Note (i): In regard to item (c) in case where
the outlay for the month is in excess of the amount at credit of deposits, the
expenditure should be adjusted through the outturn statement Part I to the
extent of the amount of deposit available and the expenditure in excess of the
deposit should be allowed to remain outstanding in suspense and shown in Part
II of the Outturn Statement. The Officer-in-charge of the Mechanical Workshops
should be advised to obtain additional deposits, to cover the outstanding
expenditure and further charges likely to be incurred on the work from the
party concerned. Note (ii): In regard to item (d) the expenditure may be
debited directly to the head "Transfer Railways" and Transfer
certificates issued without the accepted vouchers but giving full description
to the Rolling Stock repaired. The responding Railways should accept the
Transfer certificates in the same months accounts by debiting the amount
-provisionally to final heads with reference to the particulars of rolling
stock repaired, the acceptance of the charges by the departments concerned
being watched through an 'acceptance register' to be maintained for the
purpose.
763.
The following are the classes of expenditure which bills have to be got
accepted before adjustment: — a. Outlay on works executed for other departments
of the Home Line. b. Outlay on works executed for other Railways other than
those in respect of repairs to their Rolling Stock, vide para 869. c. Outlay on
works executed for other Government Departments. d. In all these cases the
outlay incurred will remain outstanding in Part II till such time as the bills
issued against the parties concerned are received back duly accepted. Such of
the items as have been accepted should be shown in Part I of the Outturn
Statement in the month in which the acceptance has been received and the
necessary debits raised against the parties concerned in the same month’s
account. (In the case of works executed for the other departments of the Home
Line, the debits may, if found convenient, be adjusted in anticipation of the
acceptance of the bills issued).
764.
Part II of the Outturn Statement should be classified under the following
heads:— PART II (Awaiting Acceptance) a. Manufacturing works b. Stores
Department works c. Works done for the Home Line Departments and Divisions. d.
Works done for Foreign Railways, other Government Departments, Railway
Employees and private bodies. e. Works executed on 'grouping' work orders.
765.
In posting Part I and II of the Outturn Statement the following procedure will
be used: Part 1 a. Such of the items relating to previous month as are to be
adjusted during the month should be copied from the Outturn Statement Part II
of the previous month and posted in column 10 of Part I and columns 8 and 9 of
Part II of the month concerned. b. Outlay relating to a month and cleared in
the same month (paragraph 869) should be posted against the respective work
orders in columns 14 to 20 of Part I from the Workshop General Registers. Part II
c. "Previous Expenditure" in respect of items other than those
falling under (a) above should be posted from Outturn Statement Part II of the
previous month. d. "Expenditure during the month" should be posted
from the Workshop General Registers.
766.
The two parts of the Outturn Statement (Part I & II) should be totaled down
and crosswise. A summary by accounts classification, showing the total
expenditure chargeable to various sub-heads of account, should be prepared in
the case of Part I. A similar summary by the various heads described in
paragraph 770 should be prepared in the case of Part II. These summaries should
form part of the respective parts of the Outturn Statement.
767.
The total of the summary of Part II should be carried over to that of Part I
and the grand total of the two parts exhibited in the latter.
768.
Workshop Deposit Schedule With a view to ensure that no private work is
undertaken in the shops without the necessary deposit being received in advance
as required under the rules (paragraph no.813) and to watch the progress of
expenditure against deposit in each case, a "Deposit Schedule" in
form M.768 should be prepared every month. The column "Balance of
Deposit" of the form should be posted from the closing balance shown in
the previous month's schedule, the column 'Deposit received during the month'
should be filled from the intimations of deposits received during the month,
care being taken to see that the total of this column agrees with the
corresponding credits to 'Deposit Miscellaneous' in respect of 'Debits during
the month' should be posted from the works to be executed in the workshop, and
the column out-turn Statement Part I Workshop deposit schedule Form M.768 month
_______. Work No. Order Date Particulars By whom Ordered Estimated cost Balance
of Deposit from the previous month 1 2 3 4 5 6 Rs. P. Total Deposit during the
month Total Debits to deposit during the month Balance at credit of deposits at
the end of the month Remarks 7 8 9 10 11 Rs. P. Rs. P. Rs. P. Rs. P. Total
769.
Workshop Account Current An Account Current of the transactions pertaining to
"Workshop Manufacture Suspense Account' for each workshop should be
prepared monthly in Form M.769 given below. This account should show the total
debits and credits to the Workshop Manufacture Suspense Account under the heads
provided in the form and the opening and closing balances. "Note: Since
the manufacture in the Production Units varies from unit to unit, no standard
form for use by them in respect of Account Current is prescribed. The
Production Units are left free to devise their own form for the purpose to suit
their local conditions. However the same format must be used for the whole
financial year" Workshop Account Current Form M.769 Particular Details Amount
Total Particulars Details Amount Proforma on cost Total 1 2 3 4 5 6 7 8 9 i) To
Opening balance (i) By Capital works (ii) To labour (ii) By Works chargeable to
Depreciation Reserve Fund. (iii) To Cash (iii) By Works chargeable to
development Fund. (iv) To Stores (iv) By Works chargeable to open line
Works-Revenue (v) To other Charges (Fuel and other misc . charges. (v) By
Revenue- Works & operation (vi) To Workshop Transfers (vi) By work done for
the Stores Deptt. (i) Manufacture Material (ii) Returned Stores (vii) To
freight charges (viii) By work done on Deposit A/C (Deposit misc.) (ix) By work
done for Home line Division and departments (Transfer Divisional) (x) By work
done for Foreign Riys. Govt. Deptts. etc. (Transfer Rlys.) (x) By work done for
other workshops (Intershop transfers) (xi) Total credits during the month (xii)
By closing balance Grand Total Grand Total Workshop Accounts Officer
770.
For preparing the the following instructions should be observed:— A. Posting
the Debit Side— a. "Labour"— The figures appearing in the Labour
Schedule should be posted against this head. b. "Cash"—Debits to
Workshop Manufacture, Suspense Account which comprise of the contractors' bills
for direct purchases etc., motor license fee, municipal taxes etc., should be posted
from the Monthly Classified Abstract of Cash Transactions (A. 1106). c.
"Stores" should be posted from the Daily Summaries of Issue Notes (S.
2702) for the last day of the month received from the Stores Accounts Office.
Note:—Before posting the stores account debits, they should be agreed with the
corresponding figures in the Stores Summary Sub-Ledger. d. "Other
Charges" including Intershop transfers should also be posted from the
Stores Summary Sub-ledger. B. Posting the Credit Side— The credit side should
be posted from the Summary of Outturn Statement Part I and should be supported
by detailed schedules. The closing balance should be worked out by deducting
total credits during the month from the total debits including the opening
balance and it should agree with the balance shown in the Outturn Statement
Part. II. Note: A register of cumulative Workshop Account should be maintained
in the Production Units showing the monthly expenditure as appearing in the
Month Account Current as also the cumulative expenditure for month to month,
both for debits as well as credits for a financial year. After the Accounts of
a financial year is closed the Production Units should prepare Manufacturing
Account and the out-turn statements for the year in their prescribed proforma
and submit the same as Annexures to the Appropriation Accounts
771.
Workshop Manufacture Suspense Account Journal Entries Journal entries (Capital
and Revenue) of all transactions affecting workshop Manufacture Suspense
Account should be prepared monthly for the Account-Current (M.769) for
incorporation in the General Books of the Railway. The following instructions
should be observed in preparing the journal entries:- A. Debit side of the
Account-Current.— (i) such of the debits as have already been incorporated in
the General Books of the Railway through the journal slip of accounts receiving
credits e.g. Stores debits. Fuel and other Miscellaneous Charges including
Inter shop transfers. Cash debits, should not be included in the journal slips
of the Workshop Manufacture Suspense Account. (ii) The amount on account of
Labour should be debited to 'Workshop Manufacture Suspense Account' by credit
to 'Labour Suspense' through a Capital Journal entry (The Muster Rolls/ Labour
Pay-sheets having been passed for payment and debited already to 'Labour
Suspense'). (iii) The amount of freight charges should be debited to 'Workshop
Manufacture Suspense Account by minus debit to 'Abstract K" Two journal
entries are necessary in this case (Capital and Revenue). B. Credit side of the
Account-Current —The credit transactions relating to 'Workshop Manufacture
Suspense Account should be journalized by per contra debits to the different
heads of account appearing on the credit side of the Account-Current. Care should
be taken to see that the credits already accounted for in the General Books
e.g. credits for issues of manufactured material and return of surplus stores
to the Stores Department which have already been included in the General Books
at the time the credit transfer certificates received from the Stores Accounts
Office are accepted and omitted from the monthly journal Slip of 'Workshop
Manufacture Suspense Account.
772.
Up-to-date totaling of Workshop General Registers After the journal entries of
the 'Workshop Manufacture Suspense Account' have been prepared, up-to-date
totals should be struck in the Workshop General Registers (M.755). The credit
side thereof should be posted, where necessary e.g., in the case of work orders
for other Government Departments and private bodies and the outstanding
balances worked out. These balances should be tallied with the corresponding
balances in the Outturn Statement Part II. Discrepancies, if any, should be
promptly investigated and adjusted. Special efforts should be made to clear up
irregular balances, if any (paragraph 774).
773.
Review of Workshop General Registers The Workshop General Registers (M. 755)
should be reviewed monthly to see that all works shown therein are current. The
work orders on which no expenditure has been booked for three consecutive
months should be reported to the Workshop-in-Charge and advice of completion
called for (see also paragraph 752). Necessary customized forms have to be
developed to enable review of WGR by respective Workshop and Accounts Wings.
774.
Irregular booking of charges On receipt of an advice of completion of a work
order from the Works-incharge, the date of completion should be noted against
that work order in the Workshop General Register (M. 755). If charges are booked
by the shops against a work order which has previously been reported as
completed, the matter should be reported to the Works-in-charge and steps taken
to rectify the irregular booking.
775.
Workshop Subsidiary Balance Register The balance under each of the suspense
heads operated upon in the Workshop Accounts Officer (e.g. Workshop Manufacture
Suspense Account, Labour Suspense Account and Development Suspense Account)
should be reconciled and proved with the General Books every month. For this
purpose a subsidiary register should be maintained in the following form, in
which should be shown opening balances, debits and credits during the month and
the closing balances. The debits and credits should be posted from the Journal.
Separate pages should be opened in this register, or separate registers
maintained if more convenient, for each suspense head of account. The
correctness of the balances in this register should be certified by the Books
Section. Any discrepancy found as a result of this reconciliation should be
promptly investigated and the Subsidiary Balance Register (M. 775) together
with the result of reconciliation, put up to the Workshop Accounts Officer
within 10 days of the close of the Accounts for the month. Note. Development
Suspense Accounts pertain to Production Units only. Workshop subsidiary balance
register Form M. 775 Head of Account........................ Month Opening
balance Debits Credits Closing balance
776.
Labour Book For the purpose of recording details of the outstanding balance
under the suspense head 'Labour' and for effecting a reconciliation with the
General Books, a register (Labour Book) showing the opening balance, credits
during the month, debits during the month, and the closing balance under
'Labour Suspense' should be maintained in the following form. The credits
should be posted from the Labour Schedule and the debits should be posted from
the various abstracts of bills passed for the month. This register should be
posted by individual bills. Form M. 776 (Form W.1322) LABOUR BOOK FOR THE MONTH
OF------------ (1) Opening balance (2) Credits during the month ______________
______________ (3) Total (4) Debits during the month (5) Closing balance.
777.
Reconciliation with the General Books The balance under 'Workshop Manufacture
Suspense Account' and ‘Labour Suspense', appearing in the Account—Current (M.
769) and the Labour Book (M. 776) respectively, should be compared with the
corresponding balances shown in the Workshop Balance Register (M. 775) after
the balances in the latter have been reconciled with the General Books. The
differences between the two sets of figures should be analyzed and a
Discrepancy Statement prepared in Form (M.777) given below. The discrepancies
should be investigated and necessary adjustments carried out to clear them.
Special attention should be paid to old discrepancies. The Discrepancy
Statement together with the Account Current and the Labour Book should be put
up to the Workshop Accounts Officer every month. The action taken to clear the
discrepancies should be stated in the 'Remarks' column of the Discrepancy
Statement. Form M. 777 DISCREPANCY STATEMENT OF WORKSHOP MANUFACTURE SUSPENSE
ACCOUNT/LABOUR SUSPENSE .................... Shops....................for the
month of.......................... Item Particulars Month in which the
discrepancy originates More in account Less in account Remarks Rs. P. Rs. P.
Total........................ ................. Deduct column less in
account.................... Net difference...............................
778.
Review of Balance under “Workshop Manufacture Suspense Account” The balance
under the ‘Workshop Manufacture Suspense Account' should be reviewed monthly to
see that — a. all the items are current and have been undertaken after the
issue of a proper work order, under the sanction of a competent authority; b.
details consist of nothing else except labour, material and work on cost
charges expended on unfinished jobs or completed jobs awaiting adjustment: c.
there are no credit items in the detail of balance and if there are any such
items, they are noted for immediate adjustment. d. in the case of jobs
undertaken for outsiders, a sufficient deposit has been made, where such a
deposit is required by rules, and on the first appearance of a work it is seen
that an estimate is on record, containing the extra percentage charges required
under the rules, and accepted by the party ordering the work and e. there are
no inefficient balances and the periodical adjustments in respect of
'overcharges and undercharges" under the oncost, manufacture and repair
work orders are carried out regularly and the outstanding are not allowed to
accumulate.
779.
The works on which no expenditure is incurred for three consecutive months
should be specially brought to the notice of CWM.
780.
The results of the WMS review should be put up to the Financial Adviser and
Chief Accounts Officer at least once a year.
781.
Completion Reports As soon as the advice of completion is received (Paragraph
752) the clerk who maintains the Works Register should prepare a Completion
Report in Form No. M. 781 The figures of actual expenditure as well as those of
estimated amount should be shown in the same details in which the estimate has
been prepared and sanctioned, but before preparing the Completion Report it
should be seen that (1) all charges under different sub-heads of estimate have
been booked, (2) the Difference in value if any has to be accounted within the
same financial year (duly obtaining the certificate to that effect from the
respective supplier) and (3) credit for released material has been adjusted.
Form M. 781 …………... Workshops Completion Report No. Date. Completion Report
of........................................................
………………………………………………………………… Authority...........................................
Estimate No..................................... of………. Name of Office in
charge of the
work.......................................................................
When commenced.........................................................................................
When completed
.......................................................................................
Sub-heads of estimate Previous Batch/ as As estimated As executed Difference
Remarks Quantity Number Amount Quantity Number Amount Excess (+) Saving (-) 1 2
3 4 5 6 7 8 Explanations for variations shown in columns in 6 and 7 above. Dy.
Chief Mechanical Engineer
782.
The Completion Report should be submitted to the authority competent to
sanction the excess, after scrutinizing the explanation regarding excesses over
estimates obtained from the Works Manager or the Deputy Chief Mechanical
Engineer, as the case may be. Completion Reports which do not show any excess
over the estimate should be filed after obtaining the explanation for the
saving, if any, from the Works Manager or the Deputy Chief Mechanical Engineer
and after endorsement of a certificate of verification thereon saving of over
15 per cent should be reported to the Chief Mechanical Engineer.
783.
Completion Report Register The Accounts Office should watch through a register
(M.781) that the completion reports involving excesses over sanctioned
estimates are received back duly sanctioned from the authority competent to
sanction the excess,
784.
A note should also be recorded in the Works Register under the work concerned
in the following form "Work completed and completion report prepared and
submitted to .................. on ............ for sanction."
785.
All completion reports should be entered in the Completion Report Register.
This register shows the following details:— a. Serial Number. b. Date of
submission. c. Particulars of work. d. Estimated cost. e. Booked expenditure.
f. Reference to works register. g. Department. h. Work order number. i.
Reference to sanction to the excess, where necessary. j. Remarks.
786.
Adjustment of charges and Credits reported on completed works The following
procedure should be followed in cases of charges and credits reported on
completed Works necessitating the revision of Completion Reports— a. If charges
or credits are received for a work after the submission of a Completion Report
not yet sanctioned, a revised Completion Report should be prepared and
necessary postings should be made in the Works Register against the work
concerned. b. If charges or credits are received after sanction to the
completion report for the work, the extent of amount chargeable to ordinary
Revenue maintenance and credits against abstract Z-650 without opening the
account of the work shall be decided by CWM in consultation with FA & CAO
at the beginning of each financial year. When charges or credits exceeds that
amount, account of the work should be re-opened and necessary adjustment made
there under. In the case of works done for private parties or other Government
Departments or Ministries, the actual amount spent on the work should be
recovered even though the completion report may not be revised.
787.
Productivity Review All M&P items procured on the basis of financial justification
should be subjected to productivity review every year. Apart from the M&P
items, all the workshops should be subjected to productivity review
periodically. This review shall be undertaken on workshops selected by GM. A
list of such workshops together with programme shall be put up by PCME to GM
through PFA with necessary recommendation as to the workshops earmarked for
application of test. The report shall be sent by CWM, PCME and PFA. PCME shall
submit the report to the General Manager, who shall forward the report along
with his own comments to Railway Board.
Multiple choice questions:
- Which works can be carried out in a workshop without an
official order from the competent authority (CWE)?
- A) Works chargeable to Demand Numbers – 05, 06, or 07 (Abstracts
C, D, and E)
- B) Works of special nature
- C) Works for outsiders, other Railways, and other
Government Departments or Ministries
- D) Consultancy to industry based on Domain Knowledge
base of the workshop
Answer:
A
- Detailed estimates for works to be undertaken in
Railway workshops should be prepared in which of the following cases?
- A) All works chargeable to ordinary revenue
- B) Works undertaken for other Government Departments
or Ministries
- C) Consultancy based on Domain Knowledge base of the
workshop
- D) All of the above
Answer:
D
- What is not covered under the provision of Para 701?
- A) Manufacture of rolling stock in Production Units
- B) Works undertaken in Railway workshops
- C) Consultancy to industry
- D) Works for outsiders
Answer:
A
- What should be included in proposals for the
construction of new work or purchase of new or replacement of existing
assets?
- A) Rate proof and rate analysis
- B) Justification in the form of Abstract Estimate
- C) Rate of Return in case of new assets
- D) All of the above
Answer:
D
- The preparation of estimates, financial vetting, and
sanction should be done as far as possible using which system?
- A) Manual
- B) Online on the computer system
- C) Hybrid
- D) None of the above
Answer:
B
- To whom should the detailed estimates be sent for
scrutiny and vetting?
- A) Chief Engineer
- B) Workshop Accounts Officer
- C) Finance Department
- D) General Manager
Answer:
B
- Which of the following should be shown separately in
the estimate for rolling-stock addition?
- A) Cost of engines or wagons
- B) Freight and haulage charges
- C) Proforma Oncost
- D) All of the above
Answer:
D
- In the case of replacement, renewal, and abandonment
works, what should be credited?
- A) Labour for erection
- B) Credits for released material
- C) Customs duty
- D) Foundation charges
Answer:
B
- Estimates for electrical equipment should be obtained
from which department?
- A) Mechanical Engineering
- B) Civil Engineering
- C) Electrical Engineering
- D) Finance
Answer:
C
- What should be appended to explain the financial
justification for the work?
- A) Cost analysis
- B) Allocation statement
- C) A certificate that funds are available
- D) Rate analysis
Answer:
C
- Which information should accompany the estimate for
renewals and replacement of an asset?
- A) Date of purchase and age of the asset
- B) Original cost charged to capital
- C) Details of distinguishing codes and numbers
- D) All of the above
Answer:
D
- The total cost of reconditioning an asset should be
charged to which account?
- A) Capital
- B) Depreciation Reserve Fund
- C) Ordinary repairs and maintenance
- D) Development Fund
Answer:
C
- When should a revised estimate be prepared?
- A) If the expenditure is likely to exceed the detailed
estimate amount sanctioned
- B) When the work is completed
- C) At the end of the financial year
- D) When a new asset is procured
Answer:
A
- Who should obtain sanction for works originally
sanctioned at the time of inclusion in the budget?
- A) General Manager
- B) Railway Board
- C) Chief Engineer
- D) Workshop Accounts Officer
Answer:
B
- Sanction of the estimate/revised estimate should be
obtained in accordance with what?
- A) Budget allocation
- B) Schedule of Powers
- C) Project timeline
- D) Engineering guidelines
Answer:
B
- Works for the manufacture or repair of articles for
Public/Private bodies should be undertaken only if:
- A) Surplus capacity exists in the Production
Unit/Railway Workshop
- B) The price is optimum
- C) Delivery schedule is workable
- D) All of the above
Answer:
D
- Before taking up works ordered by outside agencies,
what should be obtained from the officers ordering the work?
- A) Preliminary budget
- B) Formal acceptance of the estimated cost
- C) Technical specifications
- D) Project plan
Answer:
B
- What rate should be charged for preparing estimates for
works costing below Rs.10 lakhs?
- A) 2% of the total estimated cost
- B) 5% of the total estimated cost
- C) 10% of the total estimated cost
- D) No charge
Answer:
B
- Interest charges for works done for another
Department/Ministry should be calculated based on what?
- A) Annual revenue
- B) Total capital outlay
- C) Projected profit
- D) Budget allocation
Answer:
B
- Who should ensure the provision of funds before the
commencement of capital nature works in Railway Workshops?
- A) Chief Workshop Manager
- B) General Manager
- C) Finance Officer
- D) Production Unit Head
Answer:
B
- Who is responsible for verifying all estimates before
sanction?
- A) Chief Engineer
- B) Workshop Accounts Officer
- C) Associated Accounts Officer
- D) General Manager
Answer:
C
- The certificate for estimates verified by the Accounts
Officer should state what?
- A) Budget allocation verified
- B) Incidence and allocation verified
- C) Sanction by competent authority
- D) Estimate approved
Answer:
B
- When submitting an estimate for sanction, what should
be clearly mentioned?
- A) Project timeline
- B) Budget allocation
- C) Accounts Officer's acceptance
- D) Technical specifications
Answer:
C
- Who should be informed about the sanction of estimates
by the competent authorities?
- A) Workshop Manager
- B) Accounts Officer
- C) Chief Auditor
- D) Both B and C
Answer:
D
- In which format should the details of all estimates received
in the Workshop Accounts Office be available?
- A) Manual record
- B) Electronic spreadsheet
- C) Prescribed by PFA
- D) Project management software
Answer:
C
- For how long will the sanction to an estimate remain
current?
- A) One year
- B) Two years
- C) A stipulated period according to guidelines from
Railway Board
- D) Until the project is completed
Answer:
C
- Interest should be charged on works done by Railways at
the cost of other departments based on what rate?
- A) Market rate
- B) Rate of return
- C) Prevailing rate of dividend
- D) Budget rate
Answer:
C
28. The minimum standards for equipment in the postal portion
of coaching stock should be decided by the Railway Board in consultation with
which department?
- a) Ministry of Transport
- b) Ministry of Finance
- c) Postal Department
- d) Ministry of Communications
Answer: c) Postal Department
29. For vehicles owned by the Railways, what charges shall be
paid by the Postal Department?
- a) Only maintenance charges
- b) Only interest charges
- c) Interest and Depreciation charges
- d) Capital cost
Answer: c) Interest and Depreciation
charges
30. For vehicles owned by the Postal Department, what costs
will the Railways recover from the Postal Department?
- a) POH and maintenance charges
- b) Interest charges
- c) Capital cost
- d) Operating expenses
Answer: a) POH and maintenance
charges
31. When the Postal Department formally surrenders vehicles,
who bears the cost of converting such vehicles for general traffic use?
- a) The Railway Board
- b) The Postal Department
- c) The Zonal Railways
- d) The Ministry of Transport
Answer: b) The Postal Department
32. What is required from the department/Ministry of Government
to reserve vehicles for their exclusive use?
- a) Approval from the Zonal Railways
- b) Prior sanction of the competent authority
- c) Approval from the Finance Department
- d) Consultation with the Railway Board
Answer: b) Prior sanction of the
competent authority
33. For the saloon carriages reserved for the exclusive use of
departments/ministries, what are the annual charges calculated on?
- a) Fixed annual fee
- b) Operating expenses
- c) Interest, Depreciation, and Repair & Maintenance
charges
- d) Capital cost
Answer: c) Interest, Depreciation,
and Repair & Maintenance charges
34. In the case of Defence-owned stock, what charges should
only be levied?
- a) Interest and Depreciation charges
- b) POH and ROH/IOH costs
- c) Capital cost
- d) Administrative charges
Answer: b) POH and ROH/IOH costs
35. What should be included in the hire charges for rolling
stock loaned/hired to outside parties?
- a) Only depreciation charges
- b) Only maintenance charges
- c) Interest, depreciation, and loss of earnings
- d) Capital cost
Answer: c) Interest, depreciation,
and loss of earnings
36. How should the cost of Railway’s Plant and Machinery hired
to contractors be calculated?
- a) Fixed annual fee
- b) Present day market value plus freight and incidental
charges
- c) Historical cost
- d) Estimated repair costs
Answer: b) Present day market value
plus freight and incidental charges
37. What percentage is added to the cost of the plant for
supervision charges when calculating hire charges for contractors?
- a) 5%
- b) 10%
- c) 12.5%
- d) 15%
Answer: c) 12.5%
38. For the sale of heritage rolling stock, what discount is
offered to educational institutions, museums, and government bodies?
- a) 25% of scrap value
- b) 50% of scrap value
- c) 75% of scrap value
- d) Full scrap value
Answer: b) 50% of scrap value
39. At what value should surplus MG rolling stock be sold to
clients abroad?
- a) 100% of scrap value
- b) 110% of scrap value
- c) 125% of scrap value
- d) 150% of scrap value
Answer: c) 125% of scrap value
40. What should be analyzed for the expenditure in a workshop?
- a) Only material costs
- b) Only labor costs
- c) Cost of labor, materials, and on-cost
- d) Administrative expenses
Answer: c) Cost of labor, materials,
and on-cost
41. How often should the work order master be prepared with the
concurrence of associate finance?
- a) Every year
- b) Every two years
- c) Every three years
- d) Every five years
Answer: d) Every five years
42. On-cost work orders should be: a) Only for material expenses. b) Carefully analyzed to have effective control over expenditure. c) Ignored in budget preparation. d) Excluded from the annual on-cost budget.
Answer: b) Carefully analyzed to have effective control over expenditure.
43. The first two digits of on-cost work order codes represent: a) The year. b) The workshop code. c) '50' for on-cost work orders. d) The shop code.
Answer: c) '50' for on-cost work orders.
44. Raw material stock work orders should be booked: a) Directly to the repair or manufacturing work orders. b) To a separate work order for each day. c) Annually. d) Only for materials purchased from the open market.
Answer: b) To a separate work order for each day.
45. The balance under raw material stock work order represents: a) The total expenditure on raw materials. b) The shop floor stock lying in the sub-stores. c) The total sales of raw materials. d) None of the above.
Answer: b) The shop floor stock lying in the sub-stores.
46. Manufacturing work orders have an eight-digit code where the first digit represents: a) The year. b) '6' for manufacturing work orders. c) The workshop code. d) The shop code.
Answer: b) '6' for manufacturing work orders.
47. In Part, Group, and Repair Work Orders, the first digit denotes: a) The type of material used. b) The financial year. c) The half of the year (April to September or October to March). d) The workshop code.
Answer: c) The half of the year (April to September or October to March).
48. Work Order Registers must: a) Be maintained only for completed work orders. b) Provide all relevant information about each work order. c) Be accessible only to the workshop in charge. d) Not be maintained on a computer.
Answer: b) Provide all relevant information about each work order.
49. Copies of all work orders should be: a) Disposed of after completion. b) Made available for verification to Workshop Accounts Office. c) Sent to external auditors. d) Kept confidential.
Answer: b) Made available for verification to Workshop Accounts Office.
50. Before issuing a Work Order, it must be ensured that: a) There are sufficient funds available. b) The estimated cost is irrelevant. c) It is issued without any authorization. d) No prior acceptance is required.
Answer: a) There are sufficient funds available.
51. Advice of Completion is important to ensure: a) Timely booking of charges under work orders. b) Delay in work completion. c) Charges are booked without verification. d) Expenditure is left unmonitored.
Answer: a) Timely booking of charges under work orders.
52. Monthly statements of completed work orders are: a) Not necessary. b) Generated by the Accounts Office as part of MIS. c) Filed and forgotten. d) Only for internal review.
Answer: b) Generated by the Accounts Office as part of MIS.
53. Workshop Manufacture Suspense Account includes: a) Expenditure on non-production items. b) Expenditure on production and maintenance of rolling stock. c) Only material costs. d) Only labor costs.
Answer: b) Expenditure on production and maintenance of rolling stock.
54. The Workshop General Register is used to: a) Keep a record of only administrative costs. b) Total labor charges and store charges for each work order. c) Record only completed work orders. d) Track only direct man-hours.
Answer: b) Total labor charges and store charges for each work order.
55. The Check Sheet ensures: a) Correctness of the postings in the Workshop General Register. b) Only administrative tasks are recorded. c) The exclusion of stores and labor charges. d) Direct man-hours are left untracked.
Answer: a) Correctness of the postings in the Workshop General Register.
56. For calculation of works on-cost charges: a) Only manual tabulations should be used. b) On-cost charges are calculated on direct labor charges including incentive. c) Material costs are excluded. d) Percentage rates are not considered.
Answer: b) On-cost charges are calculated on direct labor charges including incentive.
57. Proforma Oncost includes: a) Only direct labor charges. b) All oncost not included in the cost of work done in railway workshops. c) Only material costs. d) Charges included in the railway’s annual budget.
Answer: b) All oncost not included in the cost of work done in railway workshops.
58. The Workshop Outturn Statement is prepared to: a) Record only completed work orders. b) Show all work orders, both in hand and completed. c) Track only administrative expenses. d) Exclude expenditure incurred in workshops.
Answer: b) Show all work orders, both in hand and completed.
59. The Outturn Statement should be: a) Prepared in one part. b) Prepared in two parts: Part I and Part II. c) Ignored for capital works. d) Used only for internal reference.
Answer: b) Prepared in two parts: Part I and Part II.
60. Classes of expenditure adjustable during the month include: a) Only capital works. b) Expenditure on works chargeable to open line works—revenue. c) Only revenue works. d) Works done for private parties.
Answer: b) Expenditure on works chargeable to open line works—revenue.
61. Bills requiring acceptance before adjustment are: a) Not necessary for other departments of the Home Line. b) Required for works executed for other Government Departments. c) Always pre-adjusted. d) Excluded from Part II of the Outturn Statement.
Answer: b) Required for works executed for other Government Departments.
62. The summary of Part II of the Outturn Statement should be: a) Combined with Part I. b) Separate by various heads described in paragraph 770. c) Only for internal use. d) Ignored in monthly reports.
Answer: b) Separate by various heads described in paragraph 770.
Q63. The main purpose of preparing the "Deposit
Schedule" in form M.768 every month is to:
- (a) Ensure timely payment of wages
- (b) Monitor the progress of private works and ensure
necessary deposits are received in advance
- (c) Track the inventory levels in workshops
- (d) Manage the attendance of workshop employees
Answer: (b) Monitor the progress of
private works and ensure necessary deposits are received in advance
Q64. The column "Balance of Deposit" in form M.768
should be posted from:
- (a) The closing balance shown in the previous month's
schedule
- (b) The estimated cost of new projects
- (c) The total debits during the month
- (d) The total deposits received during the month
Answer: (a) The closing balance
shown in the previous month's schedule
Q65. In the Workshop Account Current form M.769, which entry is
recorded under "To Labour"?
- (a) Opening balance
- (b) Debits for the month
- (c) Credits for the month
- (d) Total credits during the month
Answer: (b) Debits for the month
Q66. The closing balance in the Workshop Account Current form
M.769 is calculated by:
- (a) Adding total debits during the month to the opening
balance
- (b) Subtracting total credits during the month from the
total debits including the opening balance
- (c) Multiplying the opening balance by the total
credits during the month
- (d) Adding total credits during the month to the
opening balance
Answer: (b) Subtracting total
credits during the month from the total debits including the opening balance
Q67. The "Labour" figures in the Debit Side of the
Account-Current should be posted from:
- (a) The Monthly Classified Abstract of Cash
Transactions
- (b) The Labour Schedule
- (c) The Stores Summary Sub-Ledger
- (d) The Daily Summaries of Issue Notes
Answer: (b) The Labour Schedule
Q68. Which of the following should be done before posting the
stores account debits in the Account-Current?
- (a) Agreeing the figures with the Labour Schedule
- (b) Verifying with the General Books of the Railway
- (c) Agreeing the figures with the Stores Summary
Sub-Ledger
- (d) Cross-checking with the Journal Entries
Answer: (c) Agreeing the figures
with the Stores Summary Sub-Ledger
Q69. Journal entries for the Workshop Manufacture Suspense
Account should be prepared:
- (a) Weekly
- (b) Monthly
- (c) Biannually
- (d) Annually
Answer: (b) Monthly
Q70. Up-to-date totals should be struck in the Workshop General
Registers (M.755) after:
- (a) Preparation of the Account-Current
- (b) Posting the Daily Summaries of Issue Notes
- (c) Preparing the journal entries of the Workshop
Manufacture Suspense Account
- (d) Monthly review by the Workshop Accounts Officer
Answer: (c) Preparing the journal
entries of the Workshop Manufacture Suspense Account
Q71. What action should be taken if charges are booked against a
work order reported as completed?
- (a) The charges should be ignored
- (b) The matter should be reported to the
Works-in-charge
- (c) A new work order should be created
- (d) The charges should be transferred to the next
month's account
Answer: (b) The matter should be
reported to the Works-in-charge
Q72. The balance under each of the suspense heads in the
Workshop Subsidiary Balance Register should be reconciled and proved with:
- (a) The General Books of the Railway
- (b) The Monthly Classified Abstract of Cash
Transactions
- (c) The Daily Summaries of Issue Notes
- (d) The Labour Schedule
Answer: (a) The General Books of the
Railway
Q73. The Labour Book (Form M.776) should be posted:
- (a) Weekly
- (b) Monthly
- (c) Annually
- (d) Daily
Answer: (b) Monthly
Q74. Which form is used for the Discrepancy Statement of
Workshop Manufacture Suspense Account/Labour Suspense?
- (a) M.755
- (b) M.776
- (c) M.777
- (d) M.768
Answer: (c) M.777
Q75. What should be done if there are credit items in the detail
of balance under 'Workshop Manufacture Suspense Account'?
- (a) They should be ignored
- (b) They should be noted for immediate adjustment
- (c) They should be transferred to the next month
- (d) They should be deducted from the total debits
Answer: (b) They should be noted for
immediate adjustment
Q76. The works on which no expenditure is incurred for three
consecutive months should be reported to:
- (a) The Financial Adviser
- (b) The Chief Accounts Officer
- (c) The Workshop-in-Charge
- (d) The Chief Mechanical Engineer
Answer: (c) The Workshop-in-Charge
Q77. The results of the Workshop Manufacture Suspense Account
review should be put up to the Financial Adviser and Chief Accounts Officer:
- (a) Monthly
- (b) Quarterly
- (c) Biannually
- (d) Annually
Answer: (d) Annually
Q78. Which form is used for preparing a Completion Report?
- (a) M.755
- (b) M.768
- (c) M.781
- (d) M.776
Answer: (c) M.781
Q79. Completion Reports showing savings over 15% should be
reported to:
- (a) The Chief Accounts Officer
- (b) The Financial Adviser
- (c) The Chief Mechanical Engineer
- (d) The General Manager
Answer: (c) The Chief Mechanical
Engineer
Q80. Adjustments of charges and credits for completed works
necessitating the revision of Completion Reports should be done if charges or
credits are received:
- (a) After the completion report is sanctioned
- (b) Before the submission of the completion report
- (c) After the submission of the completion report but
not yet sanctioned
- (d) Both (a) and (c)
Answer: (d) Both (a) and (c)
Q81. What should be done when charges or credits for private
parties or other government departments exceed the specified amount?
- (a) A revised completion report should be prepared
- (b) The account of the work should be re-opened
- (c) The actual amount spent should be recovered
- (d) The charges should be transferred to the next month
Answer: (c) The actual amount spent
should be recovered
Q82. Productivity review reports should be forwarded to:
- (a) The Chief Accounts Officer
- (b) The Financial Adviser
- (c) The Chief Mechanical Engineer
- (d) The General Manager
Answer: (d) The General Manager
These questions and answers cover
the specified sections from the provided text.
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