FINANCIAL STRUCTRE OF INDIAN RAILWAYS. Sanjay upreti PAM.
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Transcript of FINANCIAL STRUCTRE OF INDIAN RAILWAYS. Sanjay upreti PAM.
![Page 1: FINANCIAL STRUCTRE OF INDIAN RAILWAYS. Sanjay upreti PAM.](https://reader035.fdocuments.us/reader035/viewer/2022062800/56649e105503460f94afb98d/html5/thumbnails/1.jpg)
FINANCIAL STRUCTRE OF INDIAN RAILWAYS.
Sanjay upreti
PAM
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FINANCIAL STRUCTRE OF INDIAN RAILWAYS.
•ACCOUNTAL OF MONEY
•EXPENDITURE ACCOUNTAL
•REVENUE EXPENDITURE
•WORKS EXPENDITURE
•EARNINGS ACCOUNTAL
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ACCOUNTAL OF MONEY
1. HOW EARNINGS ARE ACCOUNTED
COLLECTION AT THE
STATIONS
DEPOSIT AT THE BANK
BANK ADVICESRBI/NGP
RBI/NGP CREDITS/INCREASESTHE RLY.’S ACCOUNT
SENDS THE MONEYTO THE CASH
OFFICES
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ACCOUNTAL OF MONEY
2. HOW EXPENSES ARE ACCOUNTED
CHEQUE ISSUEDBY RLY.
CHEQUE DEPOSITEDIN BANK BY THE
PARTYBANK GIVES MONEY TO
THE PARTY AND ADVICESRBI/NGP.
RBI/NGP DEBITS/REDUCES RLY.’s ACCOUNT
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EARNINGS CFI
WORKS EXP.REVENUE EXP./
WORKING CAPITAL
BUDGETARY ALLOCATION
FINANCIAL STRUCTURE OF RAILWAYS.
&
RELATIONSHIP WITH THE GoI
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Commercial AccountingPara 201 of A-1
• Commercial Accounting is done in a manner so as to show:– How capital is utilize. – Its standing with debtors and creditors.– Whether it is gaining or losing.– The reasons for loss and gain.– Whether it is solvent or insolvent.
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Government AccountsPara 201 of A-1
• The main requirement of government accounting is to prepare a systematic record of receipt and expenditure.
• Indian Railways is a DEPARTMENTAL COMMERCIAL ENTERPRISE.
• Thus we maintain accounts on commercial basis as well as government basis and then link the two through link accounts.
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Para 202 & 205 of A-1
• The accounts of a Railway prepared as in a commercial unit are known as “Capital and Revenue accounts”.
• Accounts prepared for the government are called “ Finance Accounts”.
• To facilitate the preparation of finance accounts a detailed structure of accounts has been developed which synchronies with the government of India Accounting.
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CLASSIFICATION / STRUCTURE OF ACCOUNTS
WHAT IS IT?A DETAILED SCHEME OF RECORDING ACCOUNTS
NEED FOR IT?INFO/DATA - MEANINGFUL REPRESENTATION
HELPS ANALYSIS
•ENABLES - DECISIONS BASED ON
COMPARISONSCOST CONTROLSBUDGETINGFORECASTS
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REVENUE EXPENDITURE
•DEFININTION
•COMPONENTS
•1. ORDINARY WORKING EXPENSES (Para 324 of F-1)
•2. OTHER MISC. EXPENSES.
•3. APPROPRIATION TION TO FUNDS
•FROM WHERE DO WE GET MONEY FOR REVENUE EXPENSES?
• Relevant References ( Page 1 & 2 of A-2 & Para 701 of F-2)
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DEMANDS FOR GRANTS 1. Railway Board makes policies 2. Miscellaneous expenditure common to all 3. RAILWAY ADMINITRATION maintains 4. BUILDINGS & TRACKS to run 5. LOCOMOTIVES and 6. CARRIAGE by using 7. PLANT & EQUIPMENTS to operate 8. ROLLING STOCK by 9. TRAFFIC DETARTMENT using10.FUEL and earn money for11. STAFF WELFARE and12. MISCELLANEOUS EXPENSES.13. PF, Pension & other retirement benefits.14. Appropriation to funds. DRF,Pension15. Dividend, Repayment of loan etc.16. Works expenditure.
FROM 1 TO 12OWE .
FROM 1 TO 14
TWE
FROM1 TO 15
REVENUEEXP
FROM1 TO 16TOTAL
EXP
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S U B - D IV IS IO N S O F R E V E N U E D E M A N D S
M IN O R H E A D
D E A TIL E D H E A D D E A TIL E D H E A D
S U B H E A D S U B H E A D
D E A TIL E D H E A D D E A TIL E D H E A D
S U B H E A D
M IN O R H E A D M IN O R H E A D
D E M A N D N O
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EACH DEMAND IS DIVIDED INTO :
MINOR HEAD
SUBHEAD
DETAILED HEAD
PRIMARY NO.
THUS EXP. CLASSIFICATION WILL BE
04 220 32
DEMAND No. DETAILED HEAD PRIMARY UNIT
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CLASSIFICATION OF WORKS EXP.
• PLAN HEAD--- MINOR HEADS
• 24 TILL 1999 AFTER WHICH 2 NEW HAVE BEEN ADDED--- ROB & RUB UNDER SAFETY WORKS.
• Thus in all 26 plan heads exists.• e.g.• DRF- 2114-09 PROCUREMENT
OF ELEC. LOCO
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WORKS EXPENDITURE
DEFINITION
• Rules for classification of expenditure under the various heads are given in chapter 7 of F-1
•FROM WHERE DO WE GET MONEY FOR WORKS EXPENDITURE.
SURPLUS
REVENUEDRF
DF
CAPITAL FUND
CAPITALMONEY FROM EXCHEQUER
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WHILE GIVING ALLOCATION OF WORKS EXPENDITURE
WE GIVE
SOURCES OF FUND
&
THEIR APPLICATION
CAP.,CAP.FUND,DRF,DF,
PLAN HEADLIKE DOUBLING,
S&T ETC.
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DRF
• STARTED FROM 1.4.1924• PROVIDES FOR COST OF REPLACEMENT
OF ASSETS.• AMOUNT ON THE BASIS OF RCC’s
RECOMMENDATIONS.• SUBJECT TO VOTE OF PARLIAMENT• FOR 2001-2002 Appropriation to DRF has
been Budgeted at Rs.2804 Crores and withdrawal from the fund is kept at 2704 Crores..
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DF
• STARTED IN 1946---- BETTERMENT FUND AND RENAMED AS DF FROM 1.4.1950.
• IT IS OF 4 TYPES TYPES• DFI PASSENGER AMENITIES• DF II LABOUR WELFARE• DF IIIUNREMUNERATIVE WORKS FOR
OPERATIONAL EFFICIENCY• DF IVSAFETY WORKS• The appropriation to and withdrawal from the fund
for the year 2001-2002 has been kept at Rs. 511 crores.
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CAPITAL FUND
• CREATED IN 1992-93• ALL EXCESS AFTER APPROPRIATION TO
DF IS CREDITED TO THIS.• WITH A VIEW TO CREATE
INFRASTRUCTRE FROM INTERNAL RESOURCES.
• NOW OF NOT MUCH USE• The appropriation to and withdrawal from
the fund for the year 2001-2002 has been kept at Rs. 17.43 crores.
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RULES OF ALLOCATION EARNINGS
ABSTRACT X -
COACHING EARNINGS PASSENGER FARES, LUGGAGE CHARGES, PARCEL COLLECTIONS, LIVE STOCK BY PASSENGER TRAINS ETC.
ABSTRACT Y -
EARNINGS FROM GOODS TRAFFIC, GENERAL MERCHANDISE, COAL, FERTILIZERS, LIVESTOCK BY GOODS TRAINS, TRANSHIPMENT CHARGES ETC.
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ABSTRACT Z -
SUNDRY OTHER EARNINGS, COLLECTION OF RETIRING ROOM CHARGES, RECEIPTS FROM CATERING DEPT., SALE PROCEEDS OF TREES AND GRASS ON LINE, RENT OF PLOTS GIVEN TO OUTSIDERS, TELEGRAPH EARNINGS ETC.