FINANCE CODE VOL-1, CH-4 PDF

CHAPTER-IV Parliamentary Financial Control Appropriation Accounts 401 - 402 General 403 - 407 Form of Accounts and Dates of submission by the Railways 408 Figures to be exhibited in the Accounts 409 - 415 Explanations of variations 416 Re- appropriation 417 Savings due to postponement of Expenditure or Abandonment of Schemes 418 Exhibition of Recoveries or Credits 419 Unadjusted Assets and Liabilities of Special Schemes or Projects 420 Offices closed or transferred to another Department/Ministry or Governments 421 Purchase or Disposal of Immovable Property 422 Stores and Manufacture Suspense 423 Consultation with the Executive 424 - 425 Losses 426 Ex-gratia payments 427 Block Accounts (including Capital Statement comprising the Loan Account), Balance Sheet and Profit Loss Account, of Railways, 428 - 431 Block Account 432 Accounts of Production Units 433 Other Accounts and. Subsidiary Statements 434 Percentage of Working Expenses to Earnings 435 Review of Works Programme 436 Statement of Credits to Capital for Retired Assets 437 Stores Account 438 Statement of Stores Transactions 439 Stock Verification and Revaluation 440 Summary of Accounts 441 Reconciliation Statement of Annual Expenditure 442 - 446 Certificate of Sanctioned Expenditure and Statement of Unsanctioned Expenditure 447 - 448 Estimates provisionally accepted by Accounts or Audit 449 - 451 Appropriation Accounts of Civil Grants 452 - 454 Explanations of Variations in Civil Grants 1 455 - 456 Consolidated Appropriation Accounts of Railways 457 - 458 Main contents 459 Reconciliation with the combined Finance and Revenue Accounts 460 - 461 Submission to Audit 462 - 463 Consolidated Accounts of Civil Grants 464 Review of Appropriation Accounts 465 - 466 Examination by Public Accounts Committee ***** 2 ANNEXURES Formulae for working out the cost of Annexure-I replacement by like asset in respect of various types of Assets Capital Statement (Pt. I and II) Annexure-II Balance Sheet Annexure-III Profit and Loss Account Annexure-IV Chittaranjan Locomotive Works Manufacturing Annexure-V Account Chittaranjan Locomotive Works Statement of Annexure-VI Out-turn Depreciation Reserve fund Annexure-VII Development fund Account Annexure-VIII Pension Fund Account Annexure-IX Accident Compensation Safety and Passenger Annexure-X Amenities Fund (Deleted) Appropriation Accounts (Stores Account) Annexure-XI Results of Stock Verification and Revaluation Annexure-XII of Stores Grain Shops Profit and Loss Accounts (Deleted) Annexure XIII Railway Catering Profit and Loss Account Annexure-XIV Balance Outstanding under Suspense Annexure -XV Statement of expenditure held under objection Annexure-XVI Under charges detected by Accounts or Annexure-XVII Audit Statement showing Remission and Annexure-XVIII Abandonment of claims to Revenue Review of expenditure on important Open Annexure XIX line Works and New Construction Working Expenses and other revenue Annexure XX charges relating to Strategic Lines Statement of estimated and actual credits or Annexure XXI recoveries for the year 2020-21 Statement of Losses etc. Annexure-XXII Irregular reappropriations Annexure-XXIII Important misclassification and other Annexure-XXIV mistakes detected Consolidated Block account (Commercial) Annexure-XXV ***** 3 CHAPTER –IV Parliamentary Financial Control Appropriation Accounts 401. General -Budget is an instrument of Parliamentary Financial Control and at the same time, an important management tool. Parliamentary Financial Control is secured not only by the fact that all 'voted' expenditure must receive Parliament's prior approval, but also by the system of reporting back to it, through the Public Accounts Committee, the actual expenditure incurred against the Grants voted by Parliament and Appropriations sanctioned by the President. 402. The statements which are prepared for presentation to the Public Accounts Committee, comparing the amount of actual expenditure with the amount of Grants voted by Parliament and, Appropriations sanctioned by the President, are called the ―Appropriation Accounts‖. The Appropriation Accounts are signed both by the Chairman & Chief Executive Officer, Railway Board, as Principal Secretary to the Government of India, Ministry of Railways, and by the M e m b e r F i n a n c e , R a i l w a y B o a r d , as Secretary to the Government of India, Ministry of Railways, in financial matters and transmitted to the Director of Railway Audit who has been entrusted by the Comptroller and Auditor General of India with the duty of reporting on these accounts. 403. Form of Accounts and dates of submission by the Railways -The General Manager of each railway should send to the Railway Board, the Appropriation Accounts for his railway for the previous financial year in Form No. F. 403 given below, furnishing his Audit Officer simultaneously with a copy thereof for check and certification.- ---------- RAILWAY F. 403 MH 3001 Railway Board (Voted) (Covers expenditure of the Office of Railway Board) (in thousands of Rupees) Major head and sub-head Final Grant Actual Excess (+) or Expenditure Savings (-) Appropriati 4 on (1) (2) (3) (4) MH 3001 (01).Indian Railways- Policy Formulation, Direction Research and Miscellaneous organizations-office of the Railway Board- Pay of officers- O......... 32,94 30,59 30,23 -36 R........ -2,35 Pay of Establishment- 35,84 35,84.... O... 38,50 S... 3 R.. - 2,69 Other Charges-- 98,74 98,61 -13 O... 96,64 R... 2,10 Surrenders or withdrawals 2,94.... -2,94 within grant- R... 2,94 Total- 1,64,68 -3,43 O... 16,808 1,68,11 S... 3 Credits or recoveries.-Budget Estimate.............................................. ; Revised Estimate.....................;Actuals.........................More(+/Less(-) ………………… Note -If 'charged' expenditure is provided for and incurred, it should be shown separately from the 'voted' under the relevant sub-head and the total of the grant. GRANT NO. –MH 3001-02- MISCELLANEOUS EXPENDITURE (GENERAL) Major Head or Sub Original Final Grant Actual Variation Head Grant Expenditure 5 Excess (+)/Savings (-) Annexure –‗A‘ Surveys O S R Reasons of Variation Major Head or Sub Original Final Grant Actual Variation Head Grant Expenditure Excess (+)/Savings (-) Annexure –‗B‘ RDSO O S R Reasons of Variation Major Head or Sub Original Final Grant Actual Variation Head Grant Expenditure Excess (+)/Savings (-) Annexure –‗C-I‘ Railway Recruitment Board O S R Reasons of Variation Major Head or Sub Original Final Grant Actual Variation Head Grant Expenditure Excess (+)/Savings (-) Annexure –‗CII‘ Centralized Training Facilities O 6 S R Reasons of Variation Major Head or Sub Original Final Grant Actual Variation Head Grant Expenditure Excess (+)/Savings (-) Annexure –‗CIII‘ Other Misc. Establishments O S R Reasons of Variation Major Head or Sub Original Final Grant Actual Variation Head Grant Expenditure Excess (+)/Savings (-) Annexure –‗D‘ Other Misc. Establishments (Both for Voted and Charged separately) O S R Reasons of Variation Grand Total ( Both for Voted and Charged separately) Annexure –‗D‘ Other Misc. Establishments (Both for Voted and Charged separately) O S R 7 Reasons of Variation Certificate :- The Actual Expenditure has been reconciled with the figures of Account Current to end of March ______. Revenue (Major Head - 3002 & 3003) Sub Major Head (SMH)- 01 F. 403 (Voted) (in thousands of Rupees) Final Grant or Actual Excess (+) Major head(Sub Major Head) and Appropriation Expenditure Savings (-) Minor Head (1) (2) (3) (4) 3002 & 3003 (01) General Suprintendence and Services O……. 88550 88450 78450 S…….. R…… -100 Under these heads Net Savings of Rs. ― 110 lakhs ‖ against sanctioned provision of Rs. Rs. 885 lakhs occurred under following minor heads: (100) General Management - O......... 32,94 30,59 30,23 -36 R........ -2,35 Under these heads Net Savings was mainly due to incurrence of less staff cost, less office equipment expenditure charges etc. as indicated below: (in lakhs of Rs) Sub Head Nomenclature Saving Excess 110 Establishment of General manager 120 Establishment of DRMs 130 GM Services Total -3.81 1.1 Net Variation 2.71 8 (200) Financial Management - 35,84 35,84.... O... 38,50 S... 3 R.. - 2,69 (300) Personnel Management - 98,74 98,61 -13 O... 96,64 R... 2,10 Credits or recoveries-Budget Estimate................................................................... ; Revised Estimate.....................;Actuals.........................More(+/Less(-) ………………… Note -If 'charged' expenditure is provided for and incurred, it should be shown separately from the 'voted‘ under each Sub Major Head. "The Appropriation Accounts will be signed by the General Manager, Chief Administrative Officer of the Railways/Production Units and the Financial Advisor personally. This cannot be delegated to any other authority. In case where the 'advance' Appropriation Accounts are not personally signed by either/both of them due to unavoidable circumstances, these should subsequently be got approved by him/them as early as possible and an intimation to this effect be sent to the Board indicating the unavoidable circumstances." (Authority Railway Board's letter no. 92 App/6-1/91-92 dated 09.12.1992) A detailed programme giving the dates for submission of advance and audited copies of the Appropriation Accounts and connected statements is circulated every year by the Railway Board after consultation with the Additional Deputy Comptroller & Auditor General, Railways for compliance by the Railway Administration and the Statutory Audit Officers. Any information required by Audit in connection with the accounts, etc, should be promptly furnished to the Audit Officers so that there may be no delay on their part in returning the accounts duly audited and certified by the due dates. References made by the Railway Board in respect of corrections and obscure or unintelligible explanations should be promptly replied to, and changes if any made in the Appropriation Accounts as a result of comments of the Railway Board, should be simultaneously furnished to the Statutory Audit Office. Similarly, any revisions made and advised to the Statutory Audit Office, in consequence of the observations of the ADAI (Railways) on the Appropriation Accounts should at the same time be reported to the Railway Board. Amendments to the Appropriation Accounts and correction in the Annexure should be advised as soon as they are 9 known but not later than the schedule communicated by Railway Board for various statements, annexures and grant Account. 404. The entries made in Form No. F. 403 above are sample entries illustrative of the manner in which the form should be filled. The instructions/guidelines which are issued by Railway Board through the detailed annual programme for submission of Appropriation Accounts should be followed. The abbreviations used in the form are explained below :- O -Original Grant or Appropriation. S -Supplementary Grant in case of voted expenditure and supplementary appropriation in case of charged expenditure. R -Residual modification sanctioned by competent authorities other than the Parliament (i.e., re-appropriations, withdrawals or surrenders). 405. The letter 'O' should not appear in column I when the figure against it is ‗nil' or when the Original Grants or Appropriations without any modifications are direct into column 2. The letter 'O' should, therefore, appear in column I only when a figure is shown against it. In column 1 the sign plus (+) need not be inserted against plus figures which even without a sign will stand for such figures. 406. The Minor Head 'surrenders or withdrawals within Major Head' is an adjusting Minor Head and is intended for voted Grants only. It has been provided to record the amounts withdrawn or surrendered within the Major Heads. The entry against this Minor Head neutralizes the effect of reductions made under other Minor Head due to withdrawal or surrender of authorized provision; and the total in column 2 represents the provision sanctioned by the Parliament under the Major Head concerned. 407. The Appropriation Account of each Major head/Sub major Head should be prepared in detail for each sub- head of Major Head/Sub Major Head (see para 305- F). The expenditure charged to Capital, Development Fund, Capital Fund, Depreciation Reserve Fund, Railway Safety Fund, and Rashtriya Rail Sanraksha Kosh (according to any other such Fund created, deleted, replaced in future) whenever occurring in one and the same plan head of Major Head 5002-03, should be shown separately. The amount of reserve kept by the General Manager or other sanctioning authority should be shown against the sub-head "surrenders or withdrawals within Grant". In addition, credits or recoveries outside the Grant should be shown separately. This is illustrated below with reference to (Major Head 3002,3003 : Sub Major Head 01) : (Major Head 3002,3003 : SMH 01) -Revenue-General Superintendence and Services- 10 i) General Management including General Management Services. ii) Financial Management. iii) Personnel Management. iv) Materials Management. v) Way and Works Management. vi) Rolling Stock Management. vii) Electrical Management. viii) Signal & Tele-communication Management. ix) Traffic Management. x) Surrenders or withdrawals within Grant. xi) Total Credits or Recoveries. Note -Any additions or alterations in the minor heads which the Railway Board may make in book of 'Demands for Grants' for a year should be suitably embodied in the Appropriation Account of the relevant Grants for that year. 408. Figures to be exhibited in the Accounts- 1) The figures of Original Grant or Appropriation to be exhibited in the Appropriation Accounts should be those shown against the Railway in the Book of Demands for Grant as Voted by the Parliament in the case of 'Voted' grants and sanctioned by the President in the case of 'Charged' expenditure. In those cases where no special figures appear against the Railway in that book, the figures communicated by the Railway Board through Budget Orders should be shown. The figures of Final Grant or Appropriation should be those as finally sanctioned by the Railway Board before the close of the financial year. The figures of actual expenditure appearing in the Appropriation Accounts should agree with those shown in the Annual Accounts of the railway. In exhibiting actual expenditure in the Appropriation Accounts, it should be borne in mind that the expenditure as actually recorded in the accounts should be shown against the appropriate detailed head of the Major head/Sub Major Head, irrespective of the detailed head of the Major Head/Sub Major Head under which provision for such expenditure was made in the budget. In the Appropriation Accounts of Capital Segment (Major Head 5002,5003)-Assets-Acquisition, Construction and Replacements, separate figures of Capital, Depreciation Reserve Fund, Railway Safety Fund, Rashtriya Rail Sanraksha Kosh and Development Fund expenditure as the case may be, should be shown under the various Minor heads. 2) The figures of Supplementary Grants in the case of Voted expenditure to 11 be shown in column I of the Appropriation Accounts, should be those which are voted by the Parliament for each Minor Head of Major Heads/Sub major Heads of Demand for Grant. These figures are specifically mentioned in the letters sanctioning modified allotment and should be exhibited as such in the Appropriation Accounts against the Minor Heads concerned. The subsequent modifications of the allotment, if any, are made by re-appropriation and should not affect the figures of Supplementary Grants for exhibition in the Appropriation Accounts. 3) If there is any expenditure met from the "Contingency Fund' but not recouped to the Fund during the course of the year, it should be shown in column 3 of Form No F.403 duly analysed under the various Minor Head of the Sub Major Heads concerned and separately against the head ‗Met from Contingency Fund', which should be introduced under those Minor Heads. It should also be shown separately under the grand total for the Major Head/Sub Major Head as a whole. Notes On The Accounts 409. Explanations of Variations -Under the Minor Heads of the Appropriation Account of each Major Head/Sub Major Head, explanations should be furnished for the variation between the Original Grant or Appropriation and the actual expenditure of the year. Separate explanations should be given in the form of notes under each Minor Head for variations between the Original Grant or Appropriation and the actual expenditure except in cases in which the differences in column 1 or column 4 or both have been left unexplained under the operation of the limits in paragraph 410 below. In the accounts of Capital Segment (Major Head 5002,5003),the variations under Capital, Depreciation Reserve Fund, Development Fund, Capital Fund, Railway Safety Fund and Rashtriya Rail Sanraksha Kosh (according to any other such Fund created, deleted, replaced in future), as the case may be, should be explained separately. Amounts, relating to several causes should also be mentioned separately. However the variations even if these are minor, may be explained by Zonal Railways/ PUs since such minor variation may be necessitated to explain as a whole when considered cumulatively for Indian Railways. Detailed reasons/explanations must be furnished for variations beyond the limit prescribed as per extant guidelines of Railway Board. 410. As per PAC‘s recommendation ( 17th Lok Sabha, First Report), the following variations should be explained with Appropriation Accounts: For Revenue Segment: i) All cases excesses/Savings exceeding Rs. 500 lakhs. 12 ii) All cases where excess/saving exceeds 10% of sanctioned provision or Rs.250 lakhs, whichever is higher. iii) All saving exceeding Rs.500 Lakh. iv) All cases, where the savings exceeds 10% of the sanctioned provision or Rs.250 Lakh whichever is higher. v) In case there is supplementary, all cases where saving exceeds 10% of the supplementary or Rs. 100 lakhs, whichever is higher. vi) Further where grant allotted as a whole exceed then involving of Rs. 25 lakhs shall be explained. For Capital Segment: i) Specific works under which entire supplementary grant remained unutilized ii) Specific works/projects under which entire provision( original plus supplementary) remained unutilized. iii) Specific works/projects under which saving of 10% of supplementary grants or Rs. 100 Lakhs whichever is higher for incurring additional expenditure on existing works remained unutilized. iv) Specific works/projects under which the variation (Excess/saving) exceeded Rs. 500 Lakh irrespective of the percentage which the variation bears to the sanctioned provision (Original plus supplementary). v) Specific works/projects in which saving/excess exceeded Rs. 250 lakh or 10% of the sanctioned provision (Original plus Supplementary), whichever is higher but did not exceed Rs. 500 lakh. Note - It is to be ensured that explanations for variations are clear, complete, descriptive and precise. The reasons should be sequenced according to their significance. Vague explanations like ‗due to over estimates‘, ‗covered by re- appropriation‘ etc. should be avoided.(Monetary limits as revised from time to time). 411. When an excess or saving is due to expenditure having been booked under a Minor Head of a Major Head/Sub Major Head other than that under which provision was sanctioned, suitable explanation should be given under both the Minor Heads of the Major Heads/Sub Major Heads affected. In other words, the effect of following the correct classification in accounts corresponding to Budget heads different from those under which provision was made in the budget, should invariably be brought out in the explanations for variations under the Major Heads/Sub Major Heads concerned. 13 412. Whenever any variation of a large magnitude (viz., Rupees one lakh and above) between the final Grant or Appropriation and the actual expenditure is explained under any minor head of a Major Head/Sub Major Head as due to adjustments of wrong debits or bad accounting, the reasons for such wrong adjustments and why they could not be rectified before the close of the accounts for the year, should invariably be furnished in the form of foot-notes to the Appropriation Account concerned. In the case of variations and lapses over the Final Grant due to non-receipt of debits , the name of the Accounts Officer from whom the debits were awaited and steps taken by the Railway Accounts Officers to call for these debits before the close of the year, should also be noted in the foot- notes to the account concerned. 413. If variations in a number of Appropriation Accounts are due to the same cause or causes, the total effect of the cause, or causes should be stated in a comprehensive note in one place, and reference to this should be given in the explanation under the several Grants. 414. Brief explanations of variations under each Major Head/Sub Major head as a whole, showing the principal causes for the excess or the saving with the amount involved under each case, should be furnished in a separate note at the end of the Account. 415. When a variation under a Minor Head cannot be explained in a note of reasonable brevity, the explanation should be included in an Appendix, a reference to this being made in the note below the Minor Head. In all cases, definite reasons for the excess or saving should be given, bringing out clearly why the particular event leading to the variation could not be foreseen at the time of the preparation of the budget and revised estimates and what special circumstances arose subsequently leading to the unexpected variation. In the case of an excess, it should also be mentioned why the expenditure could not be postponed. 416. Re-appropriations -If there were savings under certain Minor Heads of a Major Head/Sub Major Head which could be re-appropriated to other Minor Heads sub-heads to cover excess there under, and an order of re-appropriation was not passed by the competent authority, reasons for the failure to do so should be explained. Similarly, if any Re-appropriations have been unnecessarily made, or have been made under a Minor Head under which there is no saving or insufficient saving, the circumstances in which such Re-appropriations were made, should be explained. 14 417. Savings due to Postponement of Expenditure or Abandonment of Schemes - Any savings due to the postponement of expenditure or the discharge of a liability should be distinguished from those due to abandonment of schemes, economy in expenditure, retrenchment or other similar causes. If a service or work, for which provision was made in the budget, is deliberately abandoned, in order to make funds available for expenditure for which no provision was made, the fact should be mentioned. 418. Exhibition of Recoveries or Credits –The figures of "Credits or recoveries" having been excluded from the scope of Demands (vide paragraph 335) should be shown against a separate head "Credits, or Recoveries" at the end of the Appropriation Account of each Major Head/Sub Major Head duly analysed under the various Minor Heads of Major Head/Sub Major Head. Nature of important items of credits under each Minor Head should also be indicated briefly, whereas explanations for variations between the anticipated and actual credits need not be furnished. Recoveries under 'Charged' items, if any, should be shown separately from those under 'Voted' items. 419. Unadjusted Assets and Liabilities of Special Schemes or Projects - On the completion of a special scheme or other temporary object of expenditure, which is of appreciable importance, suitable remarks regarding its unadjusted assets and liabilities should be made in the note below the relevant Minor Heads If any stores or other property were acquired by charge to the grant for the scheme, the actual or intended disposal of such property should be explained and any deficiencies noted or losses incurred should be mentioned. 420. Offices closed or transferred to another Department/Ministry or Government -When an institution or a department has been closed or transferred to another Department/Ministry or Government, the effect of the closure or transfer upon the Accounts should be indicated. 421. Purchase or Disposal of Immovable Property -When any important immovable property is purchased, relinquished or exchanged for other property, such details of the transactions as may be known should be incorporated in the note below the relevant Minor Head. Thus, in the case of a sale, particulars of original cost may, if available, be given and compared with the sale proceeds and with any estimate which may have been included in a project estimate. 422. Stores and Manufacture Suspense -The variations under the capital suspense heads, "Stores" and "Manufacture" on account of the revision of 15 programmes, delay in the supply of material, etc., which affect the final heads under "Rolling Stock" and "Works‘‘', etc., should, wherever, possible be reflected in the explanations for variations under the final heads concerned. 423. Consultation with the Executive -All explanations of variations, of inability to make timely Re-appropriations, and of wrong and unnecessary Re-appropriations should be drafted in close consultation with the controlling authorities and should be precise and informative. Vaguely worded explanations, such as 'saving is due to over-estimation' or 'excess is due to under-estimation' should be avoided. Endeavour should be made to anticipate and meet comments which the reporting officer may be expected to offer. 424. Losses -All items of losses (excepting those relating to Stores Accounts), which are booked in the accounts as losses, and of write-off of over payments. etc., which are treated as losses, should be exhibited in the notes to the Appropriation Accounts of each Major Head/Sub Major Head with the amount in units of rupees. Items costing Rs. 1 Lakh each or more should be listed individually and those below Rs. 1 Lakh each should be shown in one lump sum. Losses of Rs.1 Lakh and above due to flood damages, earthquakes and accidents. etc., should be lumped together and shown as such in the foot- note to the Major Head/Sub Major Head concerned instead of listing out each item of such losses separately. Losses on account of revaluation of stores and stock verification, etc., should generally be shown in the notes to Stores Account in terms of paragraph 439. Such items as are not mentioned therein, being below the limit upto which they are required to be mentioned, should, however, be included in the notes to the Appropriation Accounts. Note -The items of losses which are reflected in the explanations of variations under the different Minor Heads of the Grant should be co-related with the foot- notes whether of the same or of some previous years' Appropriation Accounts. If, however, the write-off of loss has not been sanctioned during the year under review and as such the item is not exhibited in the foot-notes, the fact should be brought out in the explanation. In cases where the items mentioned in the foot-notes are not reflected in the explanations, it should be stated why they are not so reflected. 425. In cases of losses and writes-off and remissions or abandonment of claims to revenue except in the case of items of warfare and demurrage, complete information giving full particulars of all cases amounting to Rs. 1 Lakh each or more, which are individually listed, and a brief statement of the circumstances 16 which led to the loss, etc., should be furnished. Similar information should also be supplied in respect of items of losses shown in the foot-notes to the Stores Account, such as physical losses of stores due to thefts, pilferage, etc., and losses on auction sales, etc., which may not be regarded as due to the normal wastage unavoidable in the working of Railways. Similarly, information regarding individual items of warfare and demurrages, amounting to Rs.5 lakh each and over should be furnished giving full particulars of each of these items and the brief statement of circumstances, leading to their remission/ write- off. 426. Ex-gratia payments- A statement embodying particulars of the items of ex- gratia payments (i.e., payments made as acts of grace) exceeding Rs.5 lakh each and the Sub Major Head to which it relates, should be sent in support of the Appropriation Accounts for exhibition in the notes to the consolidated. Appropriation Accounts of each Grant. For collecting this information, each Accounts Office should maintain a manuscript register for recording therein the particulars of the ex- gratia payments, reference to sanction, Sub Major Head affected, amount paid, month of payment, etc. Subsidiary Statements And Accounts 427. Block Accounts (Part I for Assets created from Capital and Part II for Assets created from all funds including part I) Balance Sheet and Profit and Loss Account of Railways - The Appropriation Accounts should be supported by a Block Account, Capital statement, a Balance Sheet and a Profit and Loss Account of the railway. These statements should be prepared separately for Commercial and Strategic lines. 428. Block Account -The Block Account represents all the physical assets of the undertaking whether financed from loan capital or the Railways‘ own generation of funds. 429. Block wise account under all Planheads is prepared for commercial and strategic separately and then funds wise bifurcation of it is made separately. The illustration of consolidated Block Account (commercial) is given in Annexure XXV. 430. The cost of improvement for the purpose of paragraph 429 (iii) will be the excess over the cost of replacement, at current prices, of an asset by a like asset or its original cost, estimated if not known, whichever is greater. In Annexure I are given the formulae for working out the cost of replacement by like asset in respect of various types of assets. The estimated "cost of replacement, at current prices, of an asset by a like asset" should in no circumstances be less than the cost of replacement calculated in the manner laid down in this Annexure. 17 431. The Capital Statement (Part I & II), the Balance Sheet and the Profit & Loss Accounts should be prepared as shown in the specimen entries in Annexure II to IV (based on the 2020-21 printed Appropriation Accounts). 432. Accounts of Production Units -In respect of Chittaranjan Loco Works, Banaras Locomotive Works, Rail Coach Factory, Integral Coach Factory and other Production Units, in addition to the Block Account, the Capital Statement and the Balance Sheet to be submitted vide para 431, a Manufacturing Account with a statement of out turn should also be submitted, as in the specimen entries given in Annexure V & VI (based on 2020-21 printed Appropriation Accounts). 433. Other Accounts & Subsidiary Statements- Other Mandatory Accounts, Annexures and Statements which should accompany the Appropriation Accounts of Individual Railways and Production Units are given below: S.No Particulars Annexures 1 ‗A‘- Statements of Unsanctioned Expenditure (Annexure XVI) 2 ‗B‘ – Statement of Undercharges detected by Audit and Accounts (Annexure XVII) 3 ‗C‘ Statement showing Remission and Abandonment of claims to Revenue (Annexure XVIII) 4 ‗D‘ – Statement of Expenditure on important open line works & New constructions (Annexure XIX) 5 ‗E‘ – Statement showing Expenditure relating to Strategic Lines (Annexure XX) 6 ‗F‘ – Statement of Estimated and actual credits or Recoveries (Annexure XXI) 7 ‗H‘ – Statement of losses et. and ex gratia payments above Rs. 5 lakhs (Annexure XXII) 8 ‗I‘ – Statement showing Irregular Re-appropriation (Annexure XXIII) 9 ‗J‘ – Statement showing Important Misclassifications etc. (Annexure XXIV) 10 Statement of defects in Budgeting 18 Statements 1 Statement showing Distributable Expenditure and Receipts 2 Statement showing changes in Forms & Classifications 3 Statement showing Percentage of Working Expenses to Earnings 4 Statement showing Credits to Capital for Retired Assets 5 Statement of Annual Voted and Charges Expenditure 6 Statement showing Depreciation Reserve Fund Account (Annexure VII) 7 Statement of Development Fund Account (For Railway Board Only) (Annexure VIII) 8 Statement of Capital Fund Account (For Railway Board Only) 9 Statement of Railway Safety Fund Account and Debt Service Fund Statements of RRSK ((For Railway Board Only) 10 Statement showing Pension Fund Account (Annexure IX) 11 Statement of Suspense Balances (Annexure – XV) 12 Statement showing Stores Account (Annexure –XI) 13 Statement Showing Stock Adjustment Account 14 Profit and Loss Account of Catering (Annexure – XIV) 15 Statement of Plan head wise, source wise work expenditure; showing voted and charged and Gross, Credit, Net expenditure in unit of Rs. Final Accounts 1 Capital Statement Part I&II/Block Account- Commercial & Strategic Lines 2 Profit and Loss Account/Manufacturing Account- Commercial Lines & Strategic Lines 3 Balance Sheet- Commercial Lines & Strategic Lines 434. Percentage of Working Expenses to Earnings - Operating Ratio -A statement showing percentage of working expenses to earnings in respect of the entire system (i. e., including Worked Lines) should also be submitted with the Appropriation Accounts (S.No. 3 of Head ‗STATEMENTS‘ of para 433). This statement should contain brief notes explaining the variation in the percentage for the year as compared with that for the previous year. The percentage should be worked out on the following basis - 19 Total Gross Revenue 1) as defined in item (v) of para 308. Total Gross Working Expenses 2) as defined in item (xiii) of para 308 Percentage = (2)x100/(1) 435. Compilation of Capital Segment of Appropriation Accounts -Major Head 5002 & 5003 – (Assets-Acquisition, Construction and Replacement ) may be compiled in four Segments i.e. Part I- Capital, Part-II- Railway Funds(DRF,DF and Capital Fund), Part III – Railway Safety Fund and Part IV- Rashtriya Rail Sanraksha Kosh. The reasons for variations with reference to total sanctioned provision should be explained work-wise for all the works under Minor Heads( Plan Head) – New Lines(1100), Gauge Conversion (1400), Doubling (1500) and Railway Electrification Projects(3500); and for works costing above Rs. 20 crores under Minor Heads( Plan Head) – Track Renewals (3100), Bridge Works(3200) and Signalling & Telecommunications (3300) 436. Statement of Credits to Capital for Retired Assets -A statement should also be attached showing the total amount under each Minor Head of Capital Segment (Major Head 5002,5003) which has been credited to Capital by debit to Depreciation Reserve Fund (or Replacements and Renewals, etc.) as a result of writing off the cost of retired assets. 437. Stores Account -The Appropriation Accounts should also be supported by Stores Account comprising the following information.- i) Statement of Stores Transactions. ii) The result of stock verification and of revaluation of stores, if any. 438. Statement of Stores Transactions – 1) The Statement of Stores Transactions should be prepared in the form given at Annexure XI and should include the entire stores transactions relating to both open lines (Additions and Replacements) and construction of new lines, figures relating to commercial and strategic sections being given separately. Under column 13 should be shown items which are generally credited to "Stock Adjustment Account" by debit to "Stores". In case the amounts relating to depreciation, shortage, etc., to be shown under column 16 are over Rupees one lakh or one per cent of the balance, whichever is less, explanations in support thereof should be 20 furnished. In a foot-note to the statement, reasons for the variations between the opening and closing balances of stores should be briefly stated. 2) The figures to be shown under the columns "Receipts" and' "Issues" of the Stores should represent actual receipts and issues of stores, which have been adjusted through the sub- head "Stores". In other words, the figures under "Receipts" and "Issues' should not include the figures of stores purchased and issued direct to works. 3) All Items of depreciation, shortage, etc., of stores should be shown on the issue side and figures on this account should be shown on the receipt side under the head "Unaccounted for increases, etc". The figures shown under the column "Depreciation, shortage, etc". on the issue side of the Stores Account, should include all items of losses of stores in stock, whether adjusted to final heads direct or through Stock Adjustment Account. Any items of losses on stores purchased and issued direct to works should only be exhibited in the foot-notes to the Appropriation Accounts of the grants concerned. Differences in the rates of articles manufactured for stock purposes should not, however, be treated as losses to be shown under the column "Depreciation, shortage. etc." 4) On the issue side of the Stores Account the column "other credits" corresponds to that of "other debits" on the receipt side. This column should show such items of credits as cannot be exhibited under any one of the other columns. It should include credits of miscellaneous nature which can neither be treated as issues nor depreciation of stores, etc., such as deficiencies in the rates of manufactured articles. Excess in the rate of articles manufactured for stock purposes should be exhibited on the receipt side of the Stores Account under the column "Other debits". 5) In the regular accounts the adjustment in clearance of items from the Stock Adjustment Account should be made by minus entries instead of plus ones, i. e., the resultant debits and credits to the Stock Adjustment Account should be adjusted as minus credits and minus debits. 6) a) The figures shown under "Total Debits" and "Total Credits" in the Stores Account, should be reconciled with the figures of debits and credits for the year in the General Books under the head "Stores" and 21 the difference arising out of the proforma inclusion in the Stores Account of the figures of losses due to depreciation, shortage, etc., actually adjusted in the books as minus receipts but shown on the issue side of the account in accordance with the instructions in sub- paragraph (3) above, should be explained in foot-notes. b) Similar foot-notes may be given to reconcile the figures of losses shown under the column "Depreciation, shortage, etc." in the Stores Account with those shown under the column "Deficiencies" in the Stock Adjustment Account. 439. Stock Verification and Revaluation -The statement showing the results of stock verification and of revaluation of stores referred to in paragraph 437 above, should be prepared in the form given at Annexure XII. 440. Summary of Accounts -A Summary of the Appropriation Accounts should be complied by the Railways in the following form. This need not, however, be sent to the Railway Board. The figures in the summary should be exhibited in the same manner as in Form No. 403. Form No. F. 440 Grand Summary of Appropriation Accounts by Major Heads/Sub Major Heads and (Figures in units of Rupees) Appropriations— Expenditure compared with Major Final Actual Original Grant Final Grant or Appropriation Head/Sub Grant or expenditure or Excess (+) saving (-) Major Head Appropria Appropriation tion. Excess (+) saving (-) 1 2 3 4 5 Actual credits or recoveries against all Major Heads:- Charged……….. Voted.......... 441. Statement of Annual Expenditure showing the reconciliation of figures in the Account Current with those in the Appropriation Accounts for the year should be prepared in the following form and submitted on the dates given in the programme 22 referred to in para403. The figures of "Voted" expenditure should be shown as distinct from 'Charged' expenditure- Form 441 Sub Figures as Grant Figures as per Remarks Major appearing Appropriation Appropriation Head in Account Account Current Gross Credit Gross Credits or Expenditure Recoveries 1 2 3 4 5 6 7 442. Certificate of Sanctioned Expenditure and Statement of Unsanctioned Expenditure -A certificate should be furnished to the Railway Board by the date laid down as per the programme referred to in para403 to the effect that all expenditure included in the Appropriation Accounts has been sanctioned by competent authority with the exception of items detailed in the Statement of Unsanctioned Expenditure (Annexure XVI) which should accompany the certificate. 443. In preparing the Statement of Unsanctioned Expenditure referred to above, the following instructions should be borne in mind. viz.- a) An item of objection should be classified as amounting to Rs. 1,00,000/- or more and less than Rs. 1,00,000/- according to the total amount of expenditure placed under objection to the end of the year. b) The amount to be exhibited against each of the three divisions, viz.,- i) relating to earlier than previous year, ii) relating to the previous year, and iii) relating to the year concerned, is the amount of the outstanding objectionable expenditure which was incurred during the periods concerned. c) In the foot-note showing statistics of expenditure under objection and its percentage to total expenditure audited, the expenditure to be shown as held under objection should be the total expenditure placed under objection during the year under review and still under objection on the 1st July of the year following. This figure should agree with the total of the figures shown in the columns for expenditure during the current year. The 23 amount of total expenditure audited during the year, for the purpose of the percentage given in the foot- note, should be the total expenditure as shown in the summary of the appropriation accounts. d) For the purpose of working out figures to be exhibited in this statement the minus expenditure resulting from certain credit adjustment should be taken as plus, but the amounts of expenditure should be correctly shown in Annexure A(i) (cf paragraph 445) as minus figures. 444. The Statement of Unsanctioned Expenditure should be accompanied by following subsidiary statements, showing detailed information in respect of items remaining unsanctioned upto the 1st October, the items of objectionable expenditure regularized between the 1st October and 15th February being intimated separately.- i) Statement showing amount of expenditure held under objection relating to earlier than previous year, previous year and the year under review [ Annexure A(i) Form No. F. 445. Annexure XVI (i)]. ii) Statement showing the number of items of works-the estimates of which have been passed provisionally by Accounts or Audit. [Annexure A(ii), Form No. F. 447, Annexure XVI (ii)]. 445. The Statement of Unsanctioned Expenditure (vide paragraph 444, (i) should be prepared in the detail shown in the form given below — ANNEXURE A (i) Form No. F. 445 Name of Remarks. (The delay in Railway regularising the item with Expenditure in year under earlier than previous year Expenditure up to end of Total Expenditure under proper sanction to be sanctioned expenditure Expenditure in previous explained in detail). Particulars Month in which un- was first incurred objection review year Items relating to works. Want of Estimate - Items of objections amounting to Rs. 1,00,000 each or more 24 (Here give the name of the work, etc). Items of objections amounting to less than Rs.1,00,000 each. No...... Amount Notes - i) The details regarding items relating to works........‖ Excess over Estimates" and "Miscellaneous irregularities" should also be given in the same manner. ii) The amounts should be exhibited in units of rupees. iii) The details given in Annexure A(i) should agree with the figures exhibited against the relevant lines of the Form in Annexure XVI taking the items representing minus expenditure resulting from certain credits adjustments as plus. 446. In the remarks column of Form No. F. 445, the delay in regularizing the items with proper sanction should be explained in each case, giving out clearly the reasons why the items could not be cleared. 447. Estimates provisionally accepted by Accounts or Audit - The statement of works (vide paragraph 444 (ii) the estimates for which have been passed provisionally by Accounts or Statutory Audit Office should be prepared in the following form.- ANNEXURE A (ii) Form No. F. 447 Name of Railway Number of Estimates Remarks Relating to earlier than previous year Relating to previous year Relating to the year concerned. The expenditure on works, the estimates of which have been sanctioned subject to determination of correct allocation, remains technically under objection until the allocation is finally settled and should, therefore, be included in the objectionable 25 items register and in Annexure A (ii) to the Appropriation Accounts. But such expenditure cannot be regarded as unsanctioned expenditure and would not require to be exhibited in Annexure A and A (i) to the Appropriation Accounts. 448. In Form No. F. 447 the number of works, the estimates for which have been passed provisionally by Accounts or Statutory Audit Office, should only be stated, with brief reasons in the remarks column for the delay in passing the estimates finally. 449. Appropriation Accounts of Civil Grants - Every General Manger should also furnish to the Railway Board so as to reach them by the appointed dates, advance copy of the Appropriation Accounts of the following Civil Grants in Form No. F.403 followed by the accounts duly accepted in Audit:- i) Loans and Advances bearing interest. ii) Interest on debt, and other obligations and reduction or avoidance of debt charged. iii) Pre-partition payments. The figures of actual expenditure as well as those of Grants/Appropriations should be in units of rupees. 450. The Appropriation Accounts relating to the Civil Grants or Appropriations should be prepared under the sub heads as shown in the relevant Budget Orders of the year. 451. The Appropriation Accounts of the Civil Grants for "Loans and Advances bearing interest" should be accompanied by a statement showing book keeping adjustments made during the year on account of transfers of balances under these heads with the various accounting officers. The statement should contain the following information, viz: i) Nature of Advances; and ii) Amount adjusted (in units of rupees). 452. Explanation of Variations in Civil Grants -In addition to the explanations of variations between the final Grant and actual expenditure as required by the form in which the accounts are to be prepared, important modifications in Grants or Appropriations should also be explained. 453. Under each account special mention should be made of cases in which 26 additional funds provided by re-appropriation or otherwise are found to be unnecessary or excessive, as also of cases where reductions by re-appropriation or surrender are ultimately found to be not justified. 454. The figures of surrenders proposed to the Railway Board but not accepted by them and the amount kept in reserve should be shown under the sub head "Surrenders or Withdrawals within Grant". The reasons for not utilizing the amount should also be given. Consolidated Appropriation Accounts Of Railways 455. The Appropriation Accounts of individual railways and offices, should, after scrutiny, be consolidated by the Railway Board into the "Appropriation Accounts of the Railways in India" for transmission to the ADAI (Railways) and presentation to the Public Accounts Committee. 456. The Consolidated Appropriation Accounts should be prepared by Minor Heads wise under which the demands for Grants were presented to the Parliament and the figures of original Grant or Appropriation to be exhibited in these accounts should be the same as those entered in the Book of Demands for Grants. 457. Main Contents - The consolidated Appropriation Accounts will consist of the following, viz: i) A Grand Summary of the Appropriation Accounts by Grants and Appropriations Form No. F.440 ii) An Appropriation Account for each Major Head in Form No. F.403, together with brief notes giving under each Minor Head explanations of variations between final Grants or Appropriations and actual expenditure, provided such variations are as per the limits mentioned in paragraph 410. If, however, the net excess or saving falls within the aforesaid limits but is made up of plus and minus variations exceeding those limits, the causes of such variations should be mentioned. iii) The accounts of the Deprecation Reserve Fund, Development Fund, , Pension Fund(Railway wise also), Capital Fund, Railway Safety Fund, Debt Service Fund and Rashtriya Rail Sanraksha Kosh showing (in thousands of rupees) for 10 years ending with the year under review. 1) Opening balance on 1st April. 27 2) Contribution/Appropriation during the year. 3) Loans, if any, from General Revenue. 4) Interest on the Fund. 5) Expenditure from the Fund during the year. 6) Re payment of loans obtained from General Revenues. 7) Interest paid on loans from General Revenues. 8) Balances on 31st March. Note -Figures of strategic lines should be shown separately. Item (3), (6) and (7) will be given only where applicable. iv) A Stores Accounts showing the stores transactions and Stock adjustment Account showing the results of stock verification and revaluation of stores, by Railways in Forms at Annexure XI & Annexure XII respectively and a review of the store transaction all Railways collectively in a narrative form. v) Deleted (Authority Railway Board's case no.93/App/3-7/92-93 dated 23.11.1993) vi) A consolidated Profit and Loss Account of Railway Catering (Form at Annexure XIV). vii) A consolidated Statement of Balances outstanding under Suspense (Form at Annexure XV). viii) A consolidated Statement of Unsanctioned Expenditure (to form Annexure A, A(i) and A(ii) to the consolidated Appropriation Accounts), vide paras 442 to 448.{Forms at Annexure XVI, XVI(i) and XVI(ii)} ix) A statement of under charges deducted by Accounts or Audit and recovered (to form Annexure B to the consolidated Appropriation Accounts) by railways, vide Form at Annexure XVII. x) A statement showing Remissions and Abandonment of Claims to Revenue (to form Annexure C to the consolidated Appropriation Accounts) by Railways vide form at Annexure XVIII. xi) A consolidated statement vide form at Annexure XIX in respect of 28 open line works provided in the budget the estimated cost of each of which in not less than Rs.2.5 Crores and in respect of works not provided in the budget the estimated cost each of which is R s. 2.5 Crores and above (to Form Annexure D to the consolidated Appropriation Accounts). xii) Two statements relating to Strategic lines one showing working expenses and other revenue charges and the other showing expenditure on Open Line Works and New Constructions met from Capital, Depreciation Reserve Fund, Development Fund, Open line works Revenue or Accident Compensation, Safety & Passenger Amenities Fund. These should be prepared in the detail indicated in Annexure XX (to form Annexure E to the consolidated Appropriation Accounts). xiii) Annexure 'F' in the form F.441 (corresponding to Annexure XXI to this Chapter). xiv) A Block Account, a Capital Statement, a Balance Sheet and a Profit and Loss Account of all railways in Form Nos. F.429 and Annexure II to V and in addition the Manufacturing Account and Outturn Statements of Railway Production Units in forms vide Annexure V & VI (to form Annexure 'G' to the consolidated Appropriation Accounts.) xv) A statement of Losses, called Annexure 'H' (corresponding to Annexure XXII). xvi) A Statement showing Irregular Re-appropriations made by Railways in the detail indicated in the form vide Annexure XXIII (to form Annexure 'I' to the consolidated Appropriation Accounts). xvii) A consolidated statement of Misclassifications and other important mistakes detected during the course of the year vide Annexure XXIV Information for each Railway should be exhibited separately (to from Annexure ‗J‘ to the consolidated Appropriation Accounts). Separate statement should be prepared for commercial and strategic lines. Note -The compilation referred to at item (xiv) should be printed separately, to be treated as addenda to the Appropriation Accounts of Railways in India. 458. The consolidated Appropriation Accounts should be accompanied by a statement bringing out (in thousands of rupees) the financial results which accrued to Government and the appropriation to the Reserve Fund, as compared with 29 budget and revised estimates of the year. 459. Reconciliation with the Combined Finance and Revenue Accounts- The figures of actual expenditure shown in the Appropriation Accounts when finally consolidated, should be agreed with the Combined Finance and Revenue Accounts of the Central and State Governments in India. The consolidated accounts will be titled as "Appropriation Accounts of Railways in India, Part-II- Detailed Appropriation Accounts". 460. Submission to Audit- An advance copy of these accounts should be sent to the ADAI (Railway) by the specified date. A certificate in the following form should be recorded by the M e m b e r F i n a n c e , R a i l w a y B o a r d and the Chairman & Chief Executive Officer, Railway Board as Secretaries to the Government of India, below the Grand Summary of the Appropriation Accounts:- "Certified to the best of my knowledge and belief that all expenditure included in the Appropriation Accounts of Railways in India for ……… has been sanctioned by competent authority with the exception of the items detailed in the Statement of Unsanctioned expenditure ( Annexure A)". 461. After the ADAI (Railways) has examined the accounts and certified to their correctness, the Appropriation Accounts should be printed. The printed accounts should reach the Comptroller and Auditor General not later than the 15th March of the second following year. Note -Four proof copies of the Appropriation Accounts in their final form should, however, reach the Comptroller and Auditor General one month earlier than the date mentioned above. 462. Consolidated Accounts of Civil Grants- In addition to the Appropriation Accounts of the railways, the Railway Board will prepare in Form No. F.403 consolidated Appropriation Accounts of the following civil grants, as far as they relate to the railways and submit them to the Accountant General, Central Revenues, on the dates fixed by him: i) Loans and advances bearing interest. ii) Interest on debt and other obligations and reduction or avoidance of debt charged. iii) Pre partition payments. 463. The instructions contained in paragraphs 449 to 454 supra for the preparation of the Appropriation Accounts of these Grants by individual Railways apply to the consolidated Appropriation Accounts also. 30 464. Review Of Appropriation Accounts The "Appropriation Accounts of Railways in India - Part II - Detailed Appropriation Accounts" will be accompanied by a review by the Railway Board to be titled "Appropriation Accounts of Railways in India - Part I - Review". This review will generally deal with the following topics:- i) Financial results of the year. (Financial results, Capital at Charge and position of reserve funds) ii) Final Accounts (Profit and Loss Account,Block Account & Balance Sheet) iii) Changes in the procedure, form and classification of accounts during the year. iv) Detailed review of the receipts and expenditure of the year, the figures of the different Grants being considered in suitable groups as well as individually. v) Results of Appropriation Audit showing excesses over Grants, irregular Re- Appropriations, etc. requiring a report to or ratification by the Parliament. vi) Miscellaneous subjects, such as Stores balance, Railway Catering and of Claims to Revenue. 465. Examination By Public Accounts Committee- The examination of the Appropriation Accounts and of the Audit Report thereon, on behalf of Parliaments, is conducted by their Committee on Public Accounts. According to the "Rules of Procedure and Conduct of Business in the Lok Sabha" the Committee is to satisfy itself- a) that the moneys shown in the Accounts as having been disbursed were legally available for and applicable to the service or purpose to which they have been applied or charged; b) that the expenditure conforms to the authority which governs it; and c) that every Re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority. 31 If any money has been spent on any service during a financial year in excess of the amount granted by the Parliament for that purpose, the Committee shall examine with reference to the facts of each case the circumstances leading to such an excess and make such recommendation as it may deem fit. 466. The Committee's findings are recorded in a report presented to Parliament. Even though the Committee is not an executive body and its opinions and findings are only recommendatory and not mandatory, Government examine each of its recommendations with a view to implementing them and report to it on the action taken when the next year's Accounts come up for examination. In the exceptional cases in which Government are not in a position to implement a recommendation, they place their views before the Committee to enable it to present a further report to Parliament. ***** 32 ANNEXURE I Renewals of Rails, Cranes, Weighing machines and Weigh bridges 1. When: R is the cost of replacement by a like asset; N is the cost of the new rail or crane or weighing machine or weigh bridge; W1 is the weight of the old rail, or the lifting capacity of the old crane, or the maximum weight capacity of the old weighing machine or weigh bride; W2 is the weight of the new rail or the lifting capacity of the new crane, or the maximum weight capacity of the new weighing machine or weigh bridge; the cost of replacement by like asset: NxWı R will be W2 Note -(1) The above formula will apply to cranes, weighing machines and weigh bridges, only when the replacing crane, weighing machine or weigh bridge is in the same category as the replaced one. (2) 'N' in the formula in this paragraph represents the cost of material only and does not include the labour and handling charges newly incurred which are added to the total cost of replacement. 2. Where track is renewed by a different weight of rail and different type of sleepers, the amount to be included in the Block Account shall be the difference between the replacement cost of the new material and the estimated original cost of the material in the track or the cost at present- day prices of similar material, whichever is greater. Note: The 'cost' referred to in this paragraph represents the cost of material only and does not include the labour charges, etc. 3. Where the existing rails, whether they were new or second-hand when originally put in the line, are replaced by second- hand rails, the market value or the book value of the second- hand rails, whichever is less, will be taken into account instead of the cost of the new rails in the formula: NxWı R = W2 4. When rails, which were second- hand when originally put in the line, are 33 replaced by new ones, improvement element for the purpose of the Block Account will be the difference between the first hand and second- hand price of the replaced rails at the time they were originally put in the line and the excess over the cost of replacement by a like asset, provided that the sum of these two amounts shall not exceed the excess of the cost of the replacing rails over the original cost or the present cost of replaced rails whichever is greater. Renewals of girders 5. 1) The cost of replacement of a girder will be determined by the formula R = W-K(I-S)W, where R is the cost of replacement by a like asset; W is the cost of a girder of the same span having the Revised B.G. standard or the M.G.M.L. standard strength; S is the strength of the existing girder expressed as fraction of the same standard, and K has the value given in the following table: Broad Gauge Meter Gauge Through type spans up to 50 metres clear.48.38 All other spans up to 75 metres clear.60.50 All spans over 75 metres clear.64.56 Note -When the strength of the new girder is not the Revised B.G. standard or the M.G.M.L. standard, the values of the W may be determined by the following formula: W‘ W = I-K (I-S') Where— W ‘ = the cost of the new girder, and S' = the strength of the new girder expressed as a fraction of the Revised B.G. standard or the M.G.M.L.Standard. 2) When girders are duplicated or strengthened by adding materials, instead of replacing them by new ones of the necessary strength, the amount to be included in the Block Account shall not exceed what it would have been according to the above formula, if the girders had been replaced by new ones of necessary strength. 34 3) The cost of additional earthwork carried out in raising the road bed in the approaches of railway bridges on account of replacement of girders by others of greater depth, will be included in the Block Account, provided the deeper girders give stronger bridges. 6. When locomotives, tug(s) or passenger steamer(s) are replaced, the cost of replacement is obtained by applying the formula: NxT ı R = T2 Where:-- R is the cost of replacement by a like asset; N is the cost of the new locomotive; T I is the tractive/Horse Power force of the old locomotive T2 is the tractive/Horse Power of the new locomotive. Note: In the case of Passenger Steamers however, floor area should also be taken into account as these also carry passengers besides moving on their own powers. 7. The tractive force of two-cylinder simple locomotives should be worked out by applying the formula: D2 x P x A T = W2 Where - D is the diameter of cylinder in millimeters; P is the mean steam pressure in cylinders in kilograms per sq. millimeters taken at 85 per cent of the maximum boiler pressure for superheated engine and 75 percent of the maximum boiler pressure for saturated engine; A is the length of stroke in millimeters; W is the diameter of driving wheel in millimeters; T is the tractive force at rails in kilograms. 8. In the case of four cylinder simple locomotive , the tractive force , for the purpose of the formula prescribed in the paragraph 6 above, shall be equal to 35 twice the tractive force calculated according to paragraph 7 above. Renewals of Tenders 9. The cost replacement of tenders should be obtained by using the formula- NxC1 R = C2 Where: R is the cost of replacement by a like asset; N is the cost of new tender; Cı is the capacity of old tender; C2 is the capacity of new tender. The capacity of a tender is equal to its maximum fuel capacity in kilograms, plus its maximum water capacity in kilograms calculated at 1 kilogram a litre 10. Whenever the cost of the tender is not known separately from the cost of engine, or whenever a tender engine and tender are substituted for a tank wagon or vice versa the engine and tender may be treated as a whole, the formula for locomotives being applied to the combined engine and tender. Renewals of Boilers 11. When spare boilers are replaced by boilers of increased capacity, their cost of replacement at current prices should be estimated on the basis of tractive effort of the most powerful class of engines to which the boilers (both replacing and replaced) could be fitted. 12. When a saturated boiler is replaced by a new super heater boiler without involving any increase in tractive effort, the amount to be included in the Block Account shall not be more than 10 percent of the cost of the new super heater boiler. When a saturated boiler is replaced by a new super heater boiler of higher capacity, the amount for this purpose shall be worked out in accordance with the formula laid down in paragraph 11 above. 13. When an existing boiler is converted to superheat by the use of additional fittings, the cost of the additional fittings, i.e. super heater, header, flues and elements shall be carried to the Block Account. 36 Renewals of Carriages and Passengers Flats 14. In the case of the replacement of carriages and passengers flats, one bogie should be taken as replacing two 4 - wheelers and the following formula should be used: AıxN R = A2 Where - R is the cost of replacement by a like asset; N is the cost of the new carriage excluding the cost of improved appliances which did not exists in the replaced stock and constitute a substantial improvement. Aı is the seating capacity/floor area of the old carriage; and A2 is the seating capacity/floor area of the new carriage. Note 1) Only gas and electric lighting, electric fans, air-conditioning equipment, vacuum brakes and intercommunication apparatus are admitted as improved appliances. Note 2) In the case of replacement of vehicles other than passenger carriage, such as brake vans, parcel vans hoses boxes, etc. the improvement cost should be determined on the basis of floor area and/or carrying capacity as the case may be. 15. When new stock is built on old under frames, only the depreciated value of the under frames should be included in the cost of new stock in applying the formula prescribed in paragraph 14 above. Renewals of Wagon, Barges, Pontoons etc. 16 (i) The formula that should be used for ascertaining the cost of replacement of wagons one bogie being taken as equivalent to two 4, wheelers is as follows: CıxN R = C2 Where:-- R is the cost of replacement by a like asset, N is the cost of new wagon excluding the cost of 37 improved appliances; Cı is the carrying capacity of the old wagon; C2 is the carrying capacity of the new wagon; (ii) The formula that should be used for ascertaining the cost of replacement of wagon barges, pontoons, etc, is as follows: NxD ı R = D2 Where:- R is the cost of replacement by a like asset; N is the new cost of new asset; Dı is the dock area of the old asset; D2 is the dock area of the new asset. Renewals of Rolling Stock Parts 17. In the case of renewals of complete wheels and axles of carriages and wagons the amount to be included in the Block Account will be calculated on weight basis according to the formula prescribed for rails in paragraph 1 above. 18. When locomotives are converted to superheated steam, 10 percent of the cost of new cylinders shall be included in the Block Account. Renewal of Machinery 19. In the case of replacement of machinery involving improvement, the excess over the present day replacement cost of a like asset should be taken as the improvement cost for the purpose of the Block Account. If the present day cost of a like asset is not available, the same should be worked out by increasing the original cost of the replaced asset by 75 per cent for this purpose. ***** 38 ANNEXURE II (i) F.431 (See Para 431) Part I. Capital Statement Of Indian Government Railways Comprising Loan Account 39 40 ANNEXURE II (ii) F.431 (See Para 431) Part II. Capital Statement Of Indian GovernmentRailways Comprising Loan Account (COMMERCIAL LINES) 41 42 43 44 45 ANNEXURE – III F.431 (See Para 431) 46 47 48 49 50 51 ANNEXURE IV F. 431 B (See Para 431) Profit And Loss Account Of Indian Government Railways (Commercial Lines) 52 53 ANNEXURE V F. 432 (See Para 432) Chittaranjan Locomotive Works Manufacturing Account 54 55 56 57 ANNEXURE VI F. 432 A (See Para 432) Chittaranjan Locomotive Works Statement Of Out-Turn 58 59 ANNEXURE VII (See Para 433) 60 ANNEXURE VIII (See Para 433) 61 ANNEXURE IX 62 63 ANNEXURE X Deleted 64 ANNEXURE XI F. 433 (5) 65 ANNEXURE XII F. 433 (5) A (See Para 433) 66 ANNEXURE XIII Deleted F.433(5) (Authority : RLY Bd‘s case No. 93 App/3-7/92-93 dated 23-11-93) ***** 67 ANNEXURE XIV F.433 (5) C (See Para 433) Railway Catering Profit and Loss Account 68 69 ANNEXURE-XV F. 433 (5) D (See Para 433) ***** 70 ANNEXURE-XVI 71 72 ANNEXURE-XVII Under Charges Detected By Accounts Or Audit 73 ANNEXURE-XVIII Statement Showing Remission And Abandonment Of Claims To Revenue 74 75 ANNEXURE XIX Review Of Expenditure On Important Open 'Line Works And New Construction 76 77 78 79 ANNEXURE XX Working Expenses And Other Revenue Charges Relating To Strategic Lines 80 81 ANNEXURE XXI (Form F-44) (See Para 433) 82 ANNEXURE-XXII 83 ANNEXURE-XXIII F. 433 (14) (See Para 433) 84 ANNEXURE-XXIV F. 433 (14) (See Para 433) 85 ANNEXURE-XXV (See Para -429) 86 87 88 ***** 89

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