Railway Stores Management Chapter 1
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Questions and Answers

What is the primary responsibility of the Controller of Stores?

  • To oversee passenger transportation logistics.
  • To ascertain the needs for materials and stores. (correct)
  • To conduct inspections of railway tracks.
  • To manage staff in the Stores Department.

Why are certain stores held by users at the place of work?

  • To reduce the overall cost of materials.
  • To prevent piecemeal requisitioning and manage emergencies. (correct)
  • To ensure efficient transport of goods.
  • To allow users to conduct their own inspections.

Which of the following is NOT a function of the Controller of Stores?

  • Distribution of materials to various depots.
  • Custody of materials while in the Stores Department.
  • Inventory control of stocks on hand.
  • Inspection of railway infrastructure. (correct)

Where are locomotive and carriage parts typically stored?

<p>In running sheds and signal stores. (B)</p> Signup and view all the answers

What is a characteristic of the stocks held by the Controller of Stores?

<p>They represent non-productive funds. (C)</p> Signup and view all the answers

Which material is NOT specifically mentioned as stored at work locations?

<p>Carriage repair tools. (B)</p> Signup and view all the answers

What is one reason for leaving certain purchased materials in custody of the Stores Department?

<p>Due to their high value and need for secure storage. (C)</p> Signup and view all the answers

What is the maximum value for proprietary articles subject to reasonable rates?

<p>Rs. 25 lakhs (D)</p> Signup and view all the answers

What is the estimated value threshold for adopting the open tender system?

<p>Rs. 3 lakhs (D)</p> Signup and view all the answers

For which indents can direct purchases be made with the Directorate General of Supplies and Disposals?

<p>Indents exceeding Rs. 25 lakhs (D)</p> Signup and view all the answers

What is the certification limit for minor casual indents against the advance grant?

<p>Rs. 30,000 (C)</p> Signup and view all the answers

What authority has the power to sign on behalf of the General Manager of Supplies and Disposals?

<p>The Manager of the Directorate General (C)</p> Signup and view all the answers

What types of depots are typically associated with the main locomotive workshops?

<p>Locomotive Stores Depot (A)</p> Signup and view all the answers

Which category of subordinates is sanctioned imprest stocks of stores?

<p>Running Shed Foreman (A)</p> Signup and view all the answers

What is the main function of Emergency Stores at the depots?

<p>To meet emergencies from unanticipated breakdowns (B)</p> Signup and view all the answers

What designation is given to items frequently and regularly required by the Stores Department?

<p>Stock Items (C)</p> Signup and view all the answers

Which type of stores comprises items that do not ordinarily wear out and are kept for emergencies?

<p>Emergency Stores (C)</p> Signup and view all the answers

What must occur before forming a new Stores Depot?

<p>Sanction from the General Manager (A)</p> Signup and view all the answers

Which of the following is NOT a type of depot mentioned in the content?

<p>Material Handling Depot (D)</p> Signup and view all the answers

Which letter marks the stock cards for Emergency Stores?

<p>E (D)</p> Signup and view all the answers

What is the general purpose of having various types of stores depots?

<p>To ensure efficient operational workflow (D)</p> Signup and view all the answers

Which of the following statements is true regarding Non-stock Items?

<p>They do not require inventory carrying cost. (A)</p> Signup and view all the answers

What is the primary responsibility of the Controller of Stores regarding surplus materials?

<p>To dispose of surplus and unserviceable materials (D)</p> Signup and view all the answers

Which of the following does the Controller of Stores NOT do?

<p>Keep general accounts of stores transactions (A)</p> Signup and view all the answers

What is included in the responsibilities of the Controller of Stores concerning the stores?

<p>Preparing estimates for store quantities (A)</p> Signup and view all the answers

Which statement best describes the nature of the Nomenclature-cum-Price List maintained by the Controller of Stores?

<p>It includes all store items and assigns a number to each item. (D)</p> Signup and view all the answers

How should materials that have no immediate use be handled according to the guidelines?

<p>They should be returned to the Stores Depots. (A)</p> Signup and view all the answers

What type of control does the Controller of Stores exercise over stock reporting?

<p>General Supervisory Control (A)</p> Signup and view all the answers

Which aspect of stock management is emphasized for the Controller of Stores?

<p>Minimizing obsolescence and deterioration (C)</p> Signup and view all the answers

In what manner should the Controller of Stores handle requisitions?

<p>By complying with departments promptly (C)</p> Signup and view all the answers

What is a key duty related to the initial documentation for the Controller of Stores?

<p>Preparing initial documents of receipt and issue (B)</p> Signup and view all the answers

What is the maximum purchase limit for the Chief Material Manager (CMM) as stated for the purchase of stores?

<p>Rs. 2 Crores (A)</p> Signup and view all the answers

What is required for purchases exceeding Rs. 15 Crores?

<p>General Manager's prior sanction (D)</p> Signup and view all the answers

Which category of articles can have a purchase limit of Rs. 15 Crores without additional approvals?

<p>Proprietary articles under the PAC 'c' (B)</p> Signup and view all the answers

For what estimated value do tender committees apply according to the guidelines?

<p>Rs. 10 Lakhs (D)</p> Signup and view all the answers

What is the estimated purchase value for non-proprietary articles in normal circumstances?

<p>Rs. 3 Lakhs (B)</p> Signup and view all the answers

Which group of officials is included in the term 'subordinate officers'?

<p>All Gazetted Officers in the Stores Department (D)</p> Signup and view all the answers

What approval is necessary for the adoption of the single tender system for articles valued at Rs. 10 Lakhs or above?

<p>General Manager's prior approval (A)</p> Signup and view all the answers

What is the requirements for purchases valued over Rs. 3 Lakhs for non-proprietary articles?

<p>General Manager's prior sanction (B)</p> Signup and view all the answers

Which type of purchase requires the submission of a tender?

<p>Purchases exceeding Rs. 10 Lakhs (A)</p> Signup and view all the answers

In what circumstances is approval not required for certain purchases?

<p>For proprietary articles under PAC 'c' (A)</p> Signup and view all the answers

What is the main reason for holding certain stores at users' locations rather than exclusively at the Stores Department?

<p>To ensure emergency access and prevent delays (D)</p> Signup and view all the answers

Which category of stores is specifically mentioned as being typically kept in running sheds?

<p>Locomotive, carriage, and wagon parts (A)</p> Signup and view all the answers

Which responsibility is NOT attributed to the Controller of Stores?

<p>Conducting all railway staff training (C)</p> Signup and view all the answers

In the context of materials stored by the Controller of Stores, which one represents funds that are not productive?

<p>On-hand stocks at workshops (C)</p> Signup and view all the answers

Why might stores be left in custody of the Stores Department instead of being utilized immediately at the work site?

<p>To manage overall inventory better (D)</p> Signup and view all the answers

What is a crucial factor for determining the necessity of maintaining certain stock levels by the Controller of Stores?

<p>The nature of the materials and their usage (B)</p> Signup and view all the answers

What does the term 'materials-at site' refer to in the context of store management?

<p>Materials purchased for specific works left at the site of work (C)</p> Signup and view all the answers

What is the maximum amount that can be authorized for writing off losses of stores and tools and plant in stock due to negligence of railway employees?

<p>Rs. 2,000 (C)</p> Signup and view all the answers

Which reason requires verification from the Chief Accounts Officer before making adjustments to accounts?

<p>Losses arising from negligence of railway employees (A)</p> Signup and view all the answers

Under which condition can adjustments in accounts be sanctioned without referral to the General Manager?

<p>The Chief Accounts Officer agrees (D)</p> Signup and view all the answers

Which of the following is NOT a condition for sanctioning adjustments of losses in stock?

<p>Losses cannot be attributed to carelessness (A)</p> Signup and view all the answers

What is the condition under which full powers for writing off articles of dead stock applies?

<p>Losses are up to Rs. 5,000 and not caused by negligence (A)</p> Signup and view all the answers

What aspect of material management should the Controller of Stores prioritize?

<p>Minimizing losses due to obsolescence or deterioration (C)</p> Signup and view all the answers

What is required of the Controller of Stores regarding surplus materials?

<p>To survey, value, and dispose of them appropriately (C)</p> Signup and view all the answers

What should the Nomenclature-cum-Price List maintained by the Controller of Stores include?

<p>All items in stock assigned unique numbers (C)</p> Signup and view all the answers

What type of records does the Controller of Stores maintain for stock transactions?

<p>Numerical records of items in stock only (A)</p> Signup and view all the answers

What is one of the Controller of Stores' responsibilities regarding the inflow of materials?

<p>Surveying materials not immediately required by departments (D)</p> Signup and view all the answers

What criteria must be considered when computing loss from the sale of surplus materials?

<p>Freight costs only (A)</p> Signup and view all the answers

Which of the following describes the approach the Controller of Stores should take for planning supplies?

<p>Prepare estimates based on anticipated future demands (A)</p> Signup and view all the answers

Which body does NOT have full powers for disposal of surplus materials by tender?

<p>Railway Battalions (C)</p> Signup and view all the answers

What limitation applies to the Authority of the Controller of Stores?

<p>Not a Disbursing Officer and must maintain specific records (D)</p> Signup and view all the answers

What is essential for the maintenance of the stores by the Controller?

<p>Submission of regular statements to track stock availability (B)</p> Signup and view all the answers

What is the maximum allowable loss during direct sales to other government bodies?

<p>Rs. 200 (A)</p> Signup and view all the answers

Which statement best reflects the requirement for purchasing stores?

<p>Arrangements should favor the economic purchase of stores (D)</p> Signup and view all the answers

In what scenario is full power to sell at auction applicable?

<p>For unserviceable and surplus materials (D)</p> Signup and view all the answers

Which of the following statements correctly represents the authority regarding the book value of items sold to quasi-government bodies?

<p>Items can be sold at either book value or auction rate (C)</p> Signup and view all the answers

Which governmental agency is included among those that can purchase direct sales from the Railway Department?

<p>Public undertakings of Government of India (D)</p> Signup and view all the answers

What is the condition regarding freight charges when selling surplus materials?

<p>Freight must be computed as part of administration costs (C)</p> Signup and view all the answers

What circumstances necessitate the adjustment between book value and sale value?

<p>When there is a surplus of obsolete stores (A)</p> Signup and view all the answers

Which of the following does NOT fall under the category of 'similar bodies' for material disposal purposes?

<p>Defense Research and Development Organization (A)</p> Signup and view all the answers

What is the maximum limit for adjustments against the Stock Adjustment Account for each case?

<p>Rs. 5,000 (C)</p> Signup and view all the answers

Under what condition can the limit of Rs. 1,000 be extended to Rs. 10,000?

<p>Fluctuations in market rates (C)</p> Signup and view all the answers

Which of the following is NOT a reason for adjustment restriction?

<p>Approval from Chief Accounts Officer (D)</p> Signup and view all the answers

What role does the General Manager play concerning tenders or contracts?

<p>Decide on the question of forfeiture (D)</p> Signup and view all the answers

Which situation does NOT warrant an adjustment to the Stock Adjustment Account?

<p>Technical equipment breakdowns (B)</p> Signup and view all the answers

What is a necessary condition for adjustments not requiring referral to the General Manager?

<p>Approval by the Chief Accounts Officer (C)</p> Signup and view all the answers

What is the consequence of adjustments being due to negligence or dishonesty of a railway employee?

<p>Adjustments are prohibited (D)</p> Signup and view all the answers

Which statement is true regarding the approval process for adjustments?

<p>Some adjustments can bypass the General Manager with Chief Accounts Officer's consensus. (A)</p> Signup and view all the answers

What is the relationship between market rate fluctuations and adjustments?

<p>They allow for a limit increase on adjustments. (D)</p> Signup and view all the answers

Flashcards

Controller of Stores

The official responsible for managing a railway's store inventory, ensuring efficient and economical supply.

Stores Department

The department in charge of the administration and control of railway stores.

Inventory Control

The process of managing and tracking the amount of stored railway materials and supplies.

Material at site (stores)

Materials purchased for a specific project, but remain at the work site..

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Piecemeal requisitioning

Requesting small amounts of materials from the stores department frequently.

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Emergency use of stores

Temporary storage of supplies to cope with unexpected situations without delay.

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Railway stores

Materials and supplies needed by a railway company for maintenance and operation.

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Locomotive Stores Depot

A specialized depot attached to a railway's main locomotive workshops, storing materials specifically for steam, diesel, and electric locomotives.

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Carriage and Wagon Stores Depot

A depot similarly located near a railway's main carriage and wagon shops, responsible for storing materials specific to passenger or freight cars.

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Signal Stores Depot

A depot serving the railway's signal shops, stocked with materials specific to the signaling system.

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Permanent-way Material Depots

Depots that store essential materials for maintaining the railway tracks and bridges.

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Stationery Depot

A depot specifically dedicated to storing office supplies and paperwork.

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Scrap and Unserviceable Material Depot

A depot for collecting and storing materials that are no longer usable, often located near a market for their disposal.

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Stock Items

Frequently used materials kept in the custody of the Stores Department because their unit cost justifies the storage costs.

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Ordinary Stores

Regularly used materials that are constantly in demand and kept stocked by the Stores Department.

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Emergency Stores

Materials that are not regularly used but are crucial for unexpected situations, such as breakdowns.

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Non-stock Items

Any materials that are not categorized as 'stock' items.

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What is the Controller of Stores responsible for?

The Controller of Stores is in charge of purchasing and inspecting materials for the railway, as well as maintaining custody and issuing them to departments.

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What happens to materials not immediately needed by departments?

Materials not in immediate use are returned to the Stores Depots, where the Controller of Stores assesses them and decides how to dispose of them.

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What is the Nomenclature-cum-Price List used for?

This list contains all items in stock, with assigned numbers and descriptions, used for requisitioning, receipt, issue, and other store-related documents.

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What are the Controller of Stores' financial responsibilities?

The Controller of Stores is not responsible for disbursing funds or keeping general accounts. Their role focuses on managing store inventory.

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What is the Controller of Stores' role in general supervision?

The Controller of Stores receives reports to monitor stock levels, requisition fulfillment, excess materials, and disposal of surplus or unusable items.

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What is the responsibility of the Controller of Stores in planning supplies?

They create estimates of required supplies, decide how much to purchase, and arrange for production in railway workshops.

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How does the Controller of Stores ensure efficiency?

They prioritize having readily available stocks for railway needs, while aiming to keep them as small as possible to minimize waste and obsolescence.

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What does the Controller of Stores have to deal with?

Besides regular stock management, the Controller of Stores also deals with surplus, unserviceable, and obsolete materials.

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What is the main objective of the Controller of Stores?

The Controller of Stores ensures cost-effective operation by reducing waste, obsolescence, and needless holding of supplies.

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Open Tender System

A method of procuring goods and services where bids are publicly invited from multiple vendors, ensuring fair competition and transparency.

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Direct Purchase

Buying goods directly from a specific supplier without going through a competitive bidding process.

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DGS&D

The Directorate General of Supplies and Disposals, a government agency responsible for procuring goods and services for various government departments.

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General Purposes Grant

A budget allocation used for general operational expenses, not specific projects.

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Casual Indents

Small, non-routine requests for supplies, often for immediate or urgent needs.

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What is the maximum purchase limit for a CMM?

A CMM (Chief Mechanical Engineer) can authorize purchases up to Rs. 2 Crores for items like stationery, printing, and stores. However, for purchases exceeding Rs. 15 Crore, the General Manager's approval is required.

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What is the tender process for purchases over Rs. 10 lakhs?

For purchases valued at Rs. 10 lakhs or above, a tender committee is formed. This committee evaluates all bids and selects the most suitable supplier based on criteria like price, quality, and delivery.

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When is a single tender system used?

A single tender system can be used when there are no comparable alternatives available, making it the only suitable option. This usually applies to proprietary articles where only one manufacturer produces them.

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What is the purchase limit for non-proprietary articles?

For normal circumstances, the purchase limit for non-proprietary articles is Rs. 3 lakhs. However, there is no need for a General Manager's approval unless the amount exceeds Rs. 15 Crore.

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What is the purchase limit for proprietary articles?

The purchase limit for proprietary articles is Rs. 15 Crore, provided the appropriate PAC 'c' approval has been obtained.

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PAC 'c'

PAC 'c' refers to the Purchase Advisory Committee (PAC), the group responsible for reviewing and approving purchases made by the Stores Department.

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Subordinate Officers

Subordinate officers refer to all gazetted officers working under the Stores Department, including those at the Headquarters, Depots, and Divisions.

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Tender Committees

Tender committees are formed to evaluate and select suppliers for purchases valued at Rs. 10 lakhs or above. They ensure transparency and efficiency in the procurement process.

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What is the General Manager's role in purchases?

The General Manager must approve any single purchase exceeding Rs. 15 Crore, ensuring proper financial management and oversight.

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How does the Stores Department ensure efficient supply?

The Stores Department employs various strategies such as tender committees, single tender systems, and purchase limits to ensure efficient and cost-effective procurement of railway materials.

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Material at site

Materials purchased for a specific project, but remain at the work site.

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Nomenclature-cum-Price List

A document containing all items in stock, each with a unique number and description, used for requisitioning and other store-related transactions.

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General Supervisory Control

The Controller of Stores receives reports to monitor stock levels, requisition fulfillment, excess materials, and disposal of surplus items.

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Planning of Supplies

The Controller of Stores estimates required supplies, arranges purchases, and oversees production in railway workshops.

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Surplus and Unserviceable Materials

The Controller of Stores deals with materials that are no longer needed or usable, finding ways to dispose of them.

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What is the Controller's financial role?

The Controller of Stores manages inventory but doesn't handle money or keep general financial accounts.

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How are stores managed for efficiency?

Stores are managed to have readily available stock but kept small to minimize waste and obsolescence.

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What is the purpose of the Nomenclature-cum-Price List?

It helps track and organize every item in stock, ensuring efficient requisitioning and inventory management.

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How does the Controller ensure the most advantageous purchases?

By preparing estimates, planning ahead, and arranging for economic purchases or production in workshops.

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Disposal of Unserviceable Stores

Process of selling or transferring scrap, unserviceable, surplus, or obsolete materials from the railway's stores.

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Tender Process

A formal method of selecting a supplier by inviting bids from multiple vendors, ensuring competitive pricing and quality.

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Direct Sale to Government Bodies

Selling surplus materials directly to other government organizations at the book value or the last auction price, whichever is higher.

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Auction Process

A public sale where materials are sold to the highest bidder, allowing for competitive pricing and disposal of unwanted items.

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Freight Cost in Sale

The cost of transportation for sold materials is included in the overall sale price to ensure accurate accounting.

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Sale Price Adjustment

The difference between the book value (recorded value) and the sale value of surplus materials needs to be reconciled.

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Loss Limit on Direct Sales

The maximum acceptable financial loss on direct sales to other government bodies is capped at Rs. 200 for each item.

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Full Powers to Dispose

The railway has the authority to sell or transfer surplus materials with no restrictions, subject to approved regulations.

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Forfeiture Decision

When a contract is breached, the General Manager decides whether to forfeit the contract and the associated funds.

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Loading/Unloading Contracts

Contracts for loading and unloading goods on the railway require public tenders for fair competition.

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Stock Adjustment Limit

The maximum limit for adjustments to the Stock Adjustment Account is Rs. 5,000 per case, unless it's due to negligence or different measurement methods.

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Market Rate Fluctuations

The limit for stock adjustments due to changing market rates can be increased to Rs. 10,000 with the Chief Accounts Officer's approval.

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Public Call for Tenders

Public tenders are required for awarding contracts, ensuring transparency and fair competition.

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Chief Accounts Officer’s Role

The Chief Accounts Officer can approve stock adjustments that meet certain criteria, avoiding referral to the General Manager.

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Negligence/Carelessness Adjustment

Stock adjustments cannot be made due to negligence or carelessness of railway employees.

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Different Measurement Methods

Adjustments cannot be made due to discrepancies in measurements by different departments.

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Stock Adjustment Approval

Adjustments to the Stock Adjustment Account requiring less than Rs. 5,000 do not need General Manager approval.

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General Manager Approval

The General Manager must approve any single purchase exceeding Rs. 15 Crore.

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What is PAC 'c'?

PAC 'c' refers to the Purchase Advisory Committee (PAC), the group responsible for reviewing and approving purchases made by the Stores Department.

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Study Notes

Chapter 1: Introductory Organisation

  • The Controller of Stores manages railway stores, overseeing efficient & economical material acquisition, receipt, inspection, and distribution.
  • The Controller is responsible for store depots' inventory control.
  • Some railway stores are held by users (e.g., permanent way materials by inspectors) due to practicality or emergencies.
  • Stocks should be sufficient but minimal to prevent obsolesce or deterioration.
  • All surplus or unserviceable material should be returned or sold.
  • A nomenclature-cum-price list is maintained for each store item.
  • The Controller of Stores is not a disbursing officer; store-related record-keeping is limited.
  • The Controller must be informed of stock levels, department requisitions, incoming materials not needed, and surplus/unserviceable disposal methods.
  • Planning supplies involves estimating annual store requirements, leveraging purchase policies for optimal cost-effectiveness.
  • Stores should be purchased through the Directorate General of Supplies & Disposals where appropriate.
  • Certain stores (coal, rails, sleepers) are procured by the Railway Board.
  • Stores are categorized into depots (e.g., locomotive, carriage & wagon).
  • Stock items are regularly used & cost-effective for inventory.
  • Ordinary stores are in frequent demand, while emergency stores cover unexpected needs.
  • Non-stock items are specific-use, not regularly stored.
  • Surplus stores (movable/dead) are those not used for 24/2 years respectively.
  • Surplus material disposal includes selling it to other railways, selling by tender/direct sale, or for disposal by sale.
  • Minimum stock is an average weekly use projection for timely delivery of supplies when needed.
  • Maximum stock limits are based on factors like purchase size and potential capital lock-up.
  • Workshop-related stock quantity standards are guided by works managers' recommendations.
  • Powers are delegated by the general manager to the controller of stores.
  • Financial standards apply when approving expenditures.

Chapter 1: Stores Depots

  • Stores are divided into general and engineering stores, incorporating permanent way sections.
  • Locations of stores depots are often near railway workshops/railway shops.
  • Depot officers manage individual depots under the Controller of Stores.
  • Imprest stocks are maintained by lower-level staff (e.g., running shed foreman).
  • The Controller of Stores is responsible for the purchase, sale, and inspection of all railway materials.
  • The Controller of Stores is responsible for maintaining appropriate stock levels of various materials and stores.
  • All sales are processed through a central system.
  • There must be a systematic checking of materials before any surplus material removal.

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Description

This quiz covers the key concepts of Chapter 1 on railway stores management. It explores the responsibilities of the Controller of Stores, including inventory control, stock management, and efficient material acquisition. Understanding these principles is crucial for effective railway operations.

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