INDIAN RAILWAY QUESTION BANK: QUESTION BANK WITH ANSWER - GROUP ‘B’ AMM ( Stores) PART I

QUESTION BANK WITH ANSWER - GROUP ‘B’ AMM ( Stores) PART I

QUESTION BANK FOR GROUP ‘C’ TO GROUP ‘B’ AMM ( Stores) PART-I

Section A- Objective Questions:

1. Controller of Stores is responsible only for Numerical accountal of materials and is not required to keep any general accounts of the Stores transactions. (True/False).

Ans: True

2. It is the job of the user departments to estimate the quantity to be procured in case of Stock items. (True/False)
Ans: False

3. Stock items as well as non-stock items are allotted 8 digit PL numbers (True/False)
Ans: False

4. Part supply against an order constitutes acceptance by the supplier of the terms and conditions of the purchase order, even if the terms and conditions vary from the supplier’s offer.(True/False)
Ans: True

5. Firms registered with NSIC are exempted from submission of security money against tenders for safety items.(True/False)
Ans: False

6. Procurement as per sample is generally preferred.(True/False)
Ans: False

7. In case of procurement from approved firms,

Part-II firms approved firms become eligible for bulk order if no

Part-I approved firm is available.(True/False)

Ans: True

8. In case a single offer is received against an advertised tender, the case shall normally be retendered.(True/False)
Ans: False

9. Risk purchase tender has been dispensed with for supply contracts when 10% security money has been taken from the supplier.(True/False)
Ans: True

10. Against a supply contract, purchaser is bound to agree to supplier’s request for delivery period extension.(True/False)
Ans: False

11. Delivery period of “200 nos. to be supplied per month” implies that it is a severable contract.(True/False)
Ans: False

12. The purchaser can either impose Liquidated damages or initiate Risk purchase action for the quantity which the supplier has failed to supply during the stipulated delivery period.(True/False) Ans: False

13. The time period available for Risk purchase is 9 months for items which are not easily available.(True/False)
Ans: True

True 14. India has a …….. form of government. (Quasi federal/Federal)
Ans: Quasi federal

15. The Indian Parliament consists of …….. houses called ……….
Ans: Two, LokSabha&RajyaSabha

16. A member of RajyaSabha has a term of … years.
Ans: Six

17. The first President of India was ……………………
Ans. Dr.Rajendra Prasad

18. Gir forest in india is located in the state of …………….
Ans: Gujarat

19. ‘My Experiments with Truth’is a book written by ……………………
Ans: Mahatma Gandhi

20. ………… is known as the Father of the Indian Constitution.
Ans: Dr.BhimraoAmbedkar

21. The constitution of India came into effect on ……………..
Ans: 26th Jan, 1950

22. …………………. is known as the "Father of the Green Revolution in India
Ans: M.S. Swaminathan

23. National Anthem of India has been written by ……………………
Ans: Rabindranath Tagore

24. The national song of india is ……………….., which is written by ……………….
Ans: VandeMataram, Bankim Chandra Chattopadhyay

25. United Nations Security counsil has ….. permament and ……….. nonpermanent members.
Ans: 5, 10

26. Dy.CMM at HQ. can accept Tender Committee recommendations for purchase of items valuing upto:

a. Rs. 5 Lakhs
b. Rs. 10 Lakhs
c. Rs. 8 Lakhs
d. Rs. 30 Lakhs
Answer : d

27. Finance vetting is required for all purchase orders for Safety items valuing above.

a. Rs. 40,000/-
b. Rs. 1 Lakh
c. Rs. 8 Lakh
d. Rs. 4 Lakh
Answer : c

27. Track fittings are purchased by :
a. Stores Department
b. Mechanical Department
c. Engineering Department
d. Traffic Department
Answer : c

28. Purchase of imported WTA items is handled by
a. RWF
b. ICF
c. Zonal Railways
d. Railway Board
Answer : d

29. Time elapsed from the date of realization of need of recoupment to the physical receipt of material is termed as
a. Buffer time
b. Interim period
c. Contract period
d. Lead time
Answer : d

30. Stock which provide for an emergency in case of default by the suppliers and also to take care of fluctuations in consumptions, is known as
a. Emergency stock
b. Buffer stock
c. Ordinary stores
d. Custody stock
Answer : b

31. Outstanding quantities against all live purchase orders are termed as
a. Covered dues
b. Uncovered dues
c. In process dues
d. Dead dues
Answer : a

32. Convener of the tender committee in stores purchases is the
a. Technical member
b. Accounts member
c. Mechanical member
d. Stores member
Answer : d

33. In case of imported consignments, Bill of Lading is similar to
a. Railway Receipt
b. Bill of Entry
c. Letter of Credit
d. None of the above
Answer : a

34. In case of tender accepted by Railway Board or GM, the competent authority for granting DP extension is
a. COS
b. CMM
c. GM
d. None of the above
Answer : a

35. The finance member of the tender committee in case of tender value of Rs. 1.5 crores is
a. FA&CAO/WST
b. Dy.FA&CAO
c. Sr.AFA
d. AFA
Answer : b

36. The tender quantity is 100 nos. The lowest acceptable offer is @ Rs. 11,000/- each + ED @ 16% + CST @ 4%. What will be the level of TC
a. SAG level TC
b. JAG level TC
c. Senior Scale level TC d. None of these.
Answer : c

37. GM’s power of purchase of imported stores is a. Rs. 25 crores
b. Rs. 50 crores
c. Rs. 75 crores
d. Rs. 40 croes
Answer : b

38. Excise duty is calculated on
a. Basic cost of the material
b. Basic cost of the material & packing charges
c. Basic cost of the material
d. Basic cost of the material + forwarding charges + freight charges
Answer : b

39. Inspection of items placed in Annexure B items of RDSO vendor list for Mechanical wagon items can be done by
a. RITES
b. Consignee
c. RDSO
d. None of the above
Answer : c

40. As per Railway Board guidelines, provision for 30% quantity option clause has been made mandatory in tenders for fixed quantity contracts valuing above
a. Rs. 10 Lakhs
b. Rs. 75 Lakhs
c. Rs. 50 Lakhs
d. None of the above
Answer : b

41. Expand the following :
a. KVIC : Khadi & Village Industries Corporation
b. NSIC : National Small Scale Industries Corporation
c. MMTC: Minerals and Metals Trading Corporation
d. IEEMA: Indian Electrical and Electronics Manufacturers Association
e. DDO: Direct Demand Officer
f. FOB: Free On Board

42. For safety items PO vetting is required for value more than________
Ans: Rs. 8 lakhs.

43. The powers of COS for direct purchase of stores is limited to Rs_____
Ans: Rs. 15 crores.

44. TC recommendations above Rs. 15 cr and below Rs 25 cr are accepted by _____________
Ans. AGM.

45. Powers of COS to approve limited tender is case of emergency is restricted to Rs_______________ Ans: Rs. 2 crores.

46. Powers of COS to approve single tender when PAC ‘A’ is certified is restricted to Rs_______ Ans: Rs. 5 lakhs.

47. Powers of COS to accept single Tender purchase from Stock Yards/buffer imports of M/s SAIL, TISCO, IISCO, RINL in respect of Steel items and to make 100% payment in advance to them is limited to________________. Ans: Rs. 3 crores.

48. Powers of COS to write off the loss due to Risk Purchase, General damage, liquidated damage is limited to Rs____________. Ans: Rs. 1 lakh

49. Non stock indents above Rs 10 lakhs have to be approved by_________ Ans: PHOD/CHOD of department.

50.Powers of Dy.CMM/Depot to sanction repair and maintenance of motor vehicles, material handling equipments, plant and machinery & office equipments etc is limited to ___________
Ans: Rs. 25000 in each case.

51. Powers of Dy.CMM/depot to accept bid below reserve price is limited to ______________%. Ans: 10%.

52. Powers of Divisional Stores Officers and Depot Stores Officers for purchase of items through normal mode of tenders (Open, limited, Bulletin and Single Tenders) is limited to _______________ Ans: Rs. 3 lakhs.

53. The contract to convert raw material into a finished product is called___________________
Ans: Fabrication Contract.

54. Total stores purchase value in Indian Railway as per Annual Statistical Statement 2010-11 is approximately;
a) 2900 cr
b) 29000 cr
c) 1900 cr
d) 19000 cr
Ans: (b)

55. Average Turn over ratio w/o fuel for Indian railway as per Annual QuestionPaper.Org Statistical Statement 2010-11 is;
Ans: 11%

56. Total value of scrap sold by Indian railway as per Annual Statistical Statement 2010-11 is approximately;
Ans: 4400 crores.

57. Which of the following exercise is being monitored by railway board on regular basis;
a) PL verification
b) PL allocation
c) PL unification
d) PL duplication
Ans: (c)

58. UTS and PRS stand for ______________: Ans: UTS: Unreserved ticketing system PRS: Passenger Reservation System

59. The source of revenue in printing of UTS and PRS tickets is:
Ans: Advertisement.

60. What are the 2 types of forms used in railway?
Ans: Standard form and local form.

61. Into how many climatic zones, Indian Railway is classified for supply of uniforms;
Ans: 5

62. The categories of staff, eligible style and scale for each category separately for summer, winter etc. are given in_________?
Ans: Dress regulation.

63. The unit functioning under SrDMM/DMM of divisions responsible for supply of proper seasonal garments is called;
Ans: Uniform Cell.

64. The proposals for the incurrence of expenditure by the railways are to be presented to the Parliament in the form of ____________.
Ans: Demands for Grants.

65. Arrange the following budgeting stages in the increasing chronological order: Final modification, Telegraphic Modification, Revised Estimate, August review
Ans: August review, Revised Estimate, Final modification, Telegraphic Modification.

66. Revised estimates must reach Railway Board before ___________
Ans: 23rd December.

67. The plan head for stores suspense is __________
Ans: PH-71

68. Stores budget is part of demand no __________.
Ans: 16.

69. Suspense balance includes ________________;
Ans: Purchase suspense, Sale suspense, stock adjustment account and SINT.

70. Money allotted for purchase of stock items is called
a) Purchase money
b) Purchase balance
c) Purchase suspense
d) Purchase grant
Ans: (d)

71. The register maintained by store accounts for stores budget control is called ___________;
Ans: Liability register

72. On which committee’s recommendations; Railway budget was separated from general budget? Ans. Acworth Committee.

73. When were Railway finances separated from general govt budget?
Ans: 1924.

74. The main objective of ZERO BASED BUDGETING is;
Ans: Management by Objective

75. The detailed distribution of budget allotment made to railway administrations is contained in ;
a) Yellow book
b) Green book
c) Pink Book
d) White Paper
Ans: (c)

76. Transfer of funds originally assigned for expenditure on a specific object to supplement the funds sanctioned for another object is called __________________.
Ans: Re-appropriation.

77. For PO values of Rs.1,68,75,700/- and Rs. 16,87,70,000/-, firm should deposit Security Deposit of -----------and ---------- respectively.
A)Rs.16,87,570/- and Rs.1,68,77,000/-
B)Rs. 10,00,000/- and Rs.20,00,000/-
C) Rs.16,87,570/- and Rs.20,00,000/-
D) Rs. 10,00,000/- and Rs.16,00,000/-
Ans.B)

78. As soon as the offer of the tenderer is accepted, the contractor has to deposit SD
Ans. A) Within 30 days of the posting of written notice of acceptance B) Within 25 days of receipt of the communication
C) Within 21 days of receipt of the communication
D) Within 14 days of the posting of written notice of acceptance
Ans.D)

79. Offers received after closing of tender box, but before opening of tenders , are called
Ans. A) Late Tenders
B) Delayed Tenders
C) Limited Tenders
D) Open Tenders
Ans.B)

80. IRS Terms and conditions Para-2900 deals with
Ans. A) Consignee’s right of rejection
B) Book Examination Clause
C) Arbitration in case of dispute
D) Force Majeure Clause
Ans.C)

81. A firm has entered into a contract with Railway to supply an item free off any cost. In the eye of Law
Ans.
A) Penalty can be imposed on firm in case of failure in supply
B) Contract is not enforceable.
C) Contract is enforceable but penalty cannot be imposed
D) Firm should be considered in future based on supply contract
Ans.B)

82. As per IRS Terms & Conditions Arbitration Clause, who should appoint arbitrator in case of dispute in contracts entered into by Production Units
Ans.
A) Member of the Railway Board
B) High Court
C) COS
D) GM
Ans.D)

83. As per Arbitration & Reconciliation Act 1996, annual rate of interest on award amount after the date of award is-------- .
Ans. A) 12%
B) 8%
C) 18%
D) Dependent on prevailing bank rate.
Ans.C)

84. As per Sales of Goods Act 1930, in contracts of Sale, amount increased owing to increase in Tax should be paid to seller
Ans. A) Always.
B) Only if SVC is in the contract
C) Unless a different intention appears from the terms of contract.
D) Never
Ans. C)

85. In case of Rate Contract
Ans. A) Quantity, rate and consignee are stipulated
B) Only rate is stipulated
C) Quantity and Rate is stipulated
D) Quantity, rate and Delivery Period is stipulated.
Ans.B) Section B- Descriptive Questions:

86. Write a short note on Canons of Financial Propriety.
Ans Canons of Financial Propriety are general rules which have been framed for the guidance of the Government officials who are entrusted with financial powers and who are authorized to incur, or sanction expenditure from Public Moneys. These are stated below:

(i) The expenditure should not prima facie be more than the occasion demands, and that every government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of the expenditure of his own money.

(ii) No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage.

(iii) Public money should not be utilized for the benefit of aparticular person or section of the community, unless:

(a) the amount or expenditure involved is insignificant, or

(b) a claim for the amount could be enforced in a court of law, or

(iv) The amount of allowances, such as travelling allowances, granted to meet expenditure of a particular type, should be so regulated that the allowances are not on the whole sources of profit to the recipients.

Note: All proposals involving financial implications except those which have been specifically exempted for this purpose should be referred to finance branch for advice before these are sanctioned.

87. What is the relevance of Canons of Financial Propriety in the day to day working of Stores department?
Ans Stores department is entrusted with the Material Management functions of the Railways. Large expenditure is incurred by Stores department for acquisition of assets, and their stocking, preservation and issue to the user departments. In keeping with the principles elucidated in Para

(i) of Canons of Financial Propriety, the purchase officers should follow the 5 essential principles of purchasing i.e. procurement of Right Quality, RightQuantity, Right Price, Right Place/Time and Right Source. This will ensure that there is no wasteful expenditure on account of obsolescence, deterioration, unnecessary handling and movement, blockage of funds in excess inventory, blockage of space etc. Stores department enters into contracts with various agencies for supply and transportation of materials, and for disposal of scrap. To comply with the Para

(ii) of Canons of Financial Propriety the officials entrusted with the powers to enter into such contracts should ensure that they do not have any financial interest in the agencies to whom such contracts are awarded so that they do not, directly or indirectly get benefited by such transactions. Para

iii.of Canons of Financial Propriety warrants that the conditions incorporated in the tenders for procurement of materials are fair and transparent, and do not favour any of the prospective bidders. To meet the requirement of Para iv of Canons of Financial Propriety it has to be ensured that officials are deputed for jobs after properly assessing the requirement so that the expenditure on allowances are kept at bare minimum and wasteful expenditure is avoided.

88. State the objectives of Stores department?

Ans The objectives of Stores department are as under:

To Procure materials at lowest price, consistent with desired quality
To assess the needs of various departments in respect of materials in a scientific manner based on the past consumption pattern, and interaction with the user departments etc.
To maintain continuity of supply, preventing interruption of the flow of materials to the users
To develop reliable alternate sources of supply to promote a competitive atmosphere in performance and pricing and to maintain satisfactory "buyer-vendor" relationship
To ensure proper receipt, inspection, stocking, issue and accountal of stock items
To maintain a high inventory turnover, by reducing excess storage, inventory carrying costs and inventory losses occurring due to deteriorations, obsolescence and pilferage
To dispose of the scrap generated in the process of production, maintenance and repair works, and other obsolete and unserviceable materials after proper survey and valuation
To promote standardization and variety reduction with a view to ensure consistent quality at optimum cost
To implement such programmes like value analysis, cost analysis and make or buy decisions, with a view to reduce costs

89. Describe the functions of Controller of Stores

Ans The functions of Controller of Stores are as following:

i. It is his responsibility to administer and control the working of stores department.

ii. It is his duty to ascertain the needs of a railway in the matter of materials and stores and of arranging for the supply of such materials and stores in the most efficient, economical and expeditious manner possible

iii. All Stocks of stores on hand, whether with the Stores Department or other departments of the Railway, represent funds that are not productive. Controller of Stores is responsible for ensuring that while stocks should be such that stores required by the railway are readily available, they should be as small as possible, and losses due to obsolescence or deterioration should be the minimum practicable.

iv. He is responsible for receipt, inspection and distribution of materials to the various stores depots, for their custody while in-charge of the stores department and finally for their issue on requisitions received from authorised officials of the railway.

v. It is his responsibility to issue and maintain upto-date a Nomenclaturecum-Price List including all items of stores in stock in the Stores Depots.

vi. His duties include maintenance of numerical records of stores in stock and to the preparation of the initial documents of receipt and issue.

vii. The Controller of Stores should arrange for submission to him of such statements and returns as may be necessary to keep him informed of the stocks available in his depots, the manner in which the requisitions of the departments are being complied with, the inflow of materials not required by departments and the steps taken to dispose of surplus and unserviceable stores.

viii. He is in-charge of inventory control.

ix. All materials and stores for which the consuming departments have no immediate use should be returned to the Stores Depots, the Controller of Stores being responsible for their survey and valuation, and for disposal by sale or otherwise. He has also to deal with all the surplus, and unserviceable material of the railway.

90. Describe the organizational structure of Stores department at Rly. Boardlevel, and the activities that are undertaken at this level.

Ans Rly. Board Store department is headed by Additional Member (Railway Stores), who directly reports to Member Mechanical, Railway Board.

AM(RS) is responsible for policy making as well as procurement of those items which are reserved for procurement at Rly. Board. He is assisted by various Executive directors (EDs) for the following Purchase/other activities. -

EDRS (G) Policy matters related to Procurement and stocking of Stores, Inventory Management, Budget allocation under suspense head, Co-ordination with DGS&D in conclusion of Rate Contracts and other related Railway Matters. MMIS, E-Procurement etc., All Policy Matters related to printing & printing presses. -

EDRS (S) Procurement of Wagons and Procurement of Steel (for wagon building & Rlys.). -

EDRS(P) Import of complete rolling stock, Accident Relief Cranes and R/C for spares of stock, Indigenous procurement of Wheels, Tyres & Axles and Man Power Planning. -

EDRS (C) Procurement of Petroleum, Oils& Lubricants, Procurement Policies of Textiles, Disposal of Scrap, e-auction.

EDRSs are in turn assisted by Directors, Deputy Directors, Assistant Directors and relevant sections’ staff.

91. Describe the organizational structure of Stores department at Zonal Railway level, and the activities that are undertaken at this level.

Ans Stores department of the zonal railway is headed by Controller of Stores, who directly reports to the General Manager of Railway. Controller of Stores is responsible for planning and purchase, receipt, stocking, accountal (numerical) and issue of stores, Inventory control, Vendor registration/ development, Survey/Valuation/Disposal of scrap and other unserviceable materials etc.

Controller of Stores is assisted by CMM’s, who are entrusted with the responsibilities of different purchase sections and general sections. The purchase sections as well as general sections

(vendor registration, inventory control, budget, computer, tender opening, e-procurement etc.) are headed by Section in-charges, who report to Controller of Stores through the respective AMMs, SMMs, Dy.CMMs and CMMs. There areGeneral Stores depots located all over the railways which are also under the administrative control of Controller of Stores. These Stores depots are normally headed by a Dy.CMM, who is assisted by SMMs and AMMs.

These depots are responsible for Receipt, Stocking, Accountal and Issue of materials, Scrap sale etc. and have various sections/wards like Receipt Section, Inspection Ward, Stocking Wards, Despatch Sections, Ledger Section, Progress Section, Scrap Yard etc. which are all headed by a Section in-charge, who report to the depot in-charge. The depot inchargereports to the Controller of Stores through the respective CMMs in the Headquarters.

In addition to the General Stores depots, there are depots attached with the Railway workshops and Diesel/Electric sheds, which are under the administrative control of the heads of the respective Workshops/Sheds. These cater to the needs of the Workshops/Sheds in respect of materials. These depots are normally headed by a SMM/AMM.

Similarly, the each Division has a Stores organization, normally headed by a Dy.CMM who is under the administrative control of the DRM. The divisional stores officer is in-charge of the divisional stores depot (available is some divisions only), and is responsible for coordination with the Headquarters’ Stores office for items in short supply, for local purchase of urgent/small value items, for disposal of low value scrap, and for drawl of uniforms from the nominated General Stores depot and distribution of the same to the various branches of the division.

92. Describe in brief role of the following organizations in regard to purchases of material by NC Railway.
(1) RITES,
(ii) DGS&D,
(iii) NSIC,
(iv) CRIS,
(v) COFMOW

Answer:

(i) RITES:

Quality Assurance Division of RITES provides services for third party inspection of materials & equipments against purchase orders placed by NC Railway. The inspection services of RITES are backed by in house laboratory facilities providing technical support. As per the existing instructions of Railway Board, RITES carry out third part inspection of materials & equipment against purchase orders having value more than Rs. One lakh. The QA division of RITES has been divided in five regions i.e. Central, Northern, Southern, Western & Eastern region with clearly defined jurisdiction. After placement of purchase order by the railway, the vendor is required to submit inspection call in the regional office of RITES, in the jurisdiction of which the firm is located. The inspection is carried out by RITES inspecting engineer at firm’s premises. After the material is passed and inspection certificate is issued by RITES, the vendor can dispatch the material. In case the consignee rejects the material which was pre inspected by RITES, a representative of RITES associates in the joint inspection with consignee and the firm’s representative.

(ii) DGS&D:

Directorate General of Supplies & Disposal is a central purchase & Quality Assurance organization of Govt. of India, department of supply, ministry of commerce. It renders procurement services to central & state governments by placing rate contracts for common use items. Items which are required to be procured through DGS&D have been given in Appendix VI of Stores Code vol-I. These items have been categorized under various groups such as building materials, pipe fittings, hardware, furniture, crockery, cutlery, lubricating oils & grease, distribution & transmission line materials, electrical fittings, cables, insulating material, miscellaneous stores etc. In respect of items for which DGS&D has entered into rate contracts, COS may, at his discretion, make direct purchases upto a limit of Rs. 1 lakh in each case subject to ceiling limit of Rs. 5 lakhs in each case per annum. As per the existing instructions, all the supply orders placed against DGS&D rate contracts are placed on line through DGS&D website. The materials purchased through DGS&D are inspected & tested by inspection wing of DGS&D at firm’s premises prior to despatch. Whenever a valid rate contract is not available or the available rate contracts do not meet the requirements of the Railways in respect of the specification, delivery requirement and quality considerations, Railways can go ahead with the direct procurement of materials after recording adequate justification.

(iii) NSIC :

National Small Industries Corporation Ltd. is a Government of India enterprise under ministry of Micro, Small & Medium Enterprises (MSME). It promotes the growth of small industries & industry related micro, small and medium enterprises in the country. NSIC operates a single point registration scheme under the government purchase programme, where the registered SSI units get several benefits in procurement by railways such as

(a) Issue of tender documents free of cost,

(b) Exemption from payment of Earnest Money deposit,

(c) Waiver of Security Deposit upto the monetary limit for which the unit is registered. Some items are reserved to be procured from firms registered with NSIC such as different sizes of nuts, bolts & rivets, varnish & paint brushes, leather hand gloves etc. In addition to the above, the SSI units get automatic registration with the Railways based on NSIC registration certificate and no fee or cost of application form for seeking registration in Railways is charged from such firms.

(iv) CRIS :

Centre for Railway Information System (CRIS) provides consultancy and IT services to Indian Railways. CRIS has developed Indian Railway EProcurement System for IR. Complete activity of procurement of material by NC Railway is being done on IREPS. Tenders for procurement of material are first uploaded on the IREPS website, which are opened at the due date & time of tender opening. Then tabulation statement is printed and signed by the tender opening officials. After finalization of the tenders, the details of the purchase orders placed are uploaded on the website. With the introduction of e-tendering system, the procurement process has got expedited and it has also become more transparent. The CRIS is in the process of developing e-auction module on IREPS website for on line sale of scrap materials by Indian Railways.

(v) COFMOW :

It is an organization under ministry of railways for procurement & induction of modern workshop technologies and M&P. It prepare detailed technical specification for procurement of M&P. As per the existing instructions, all M&P items having value more than Rs. 10 Lakhs are required to be procured through COFMOW only. Railways can go for direct procurement of such M&P only after getting dispensation from COFMOW.

93. What are the various modes of tendering issued for procurement of materials by IR ? Discuss the need for adopting particular mode of tendering and also specify financial limits for issuing these tenders in normal circumstances.

Ans. The various modes of tendering issued for procurement of materials by IR are :

(a) Open Tender

(b) Limited Tender

(d) Special Limited Tenders

(e) Global Tender

(a) Open Tender:

This system of invitation of tender by public advertisement in the most open and public manner possible is called open tender. This is generally adopted in all cases in which the estimated value of purchase is over Rs. 10 lakh in normal circumstances.

(b) Limited Tender:

This system may ordinarily be adopted in the cases of the estimated tender value of which does not exceed Rs. 10 lakh. In case of items whose approved list of vendors is issued by centralized agency i.e. RDSO/Production Units (PUs)/CORE etc., this system may be adopted in the case of purchases, the estimated value of which does not exceed Rs. 2 crore.

Under this system enquiries are to be issued only to the firms who are borne on the approved list of suppliers for the particular item. While issuing such enquiries, it should be ensured that the last successful supplier is invariably included. The enquiries may be issued to a minimum number of three firms and a maximum of 7 or 8 against each other. Whenever a large number of firms are registered for a group/items, it may be ensured that enquiries are sent to all of them by rotation. However, the minimum/maximum number of enquiries to be sent against each tender be varied at the discretion of the competent authority as circumstances warrant. There is also no objection to the issue of limited tender enquiries to the firms not on approved list, provided justification for the same is recorded. In respect of cases falling within the purchase powers of officers below the rank of Dy.CMM, the approval of Dy.CMM should be obtained. In respect of cases falling within the purchase powers of Dy.CMM, the approval CMM and cases in any falling within the purchases powers of CMM the approval of COS should be obtained.

(c)Single Tender:

This system may be adopted in case of purchase of items in following cases.

1. Proprietary articles where it has been possible to certify that a similar article, which could be used in lieu is not manufactured /sold by any other firm (PAC ‘C’ certified), Purchase powers are of different officers Are upto their level of acceptance.

2. For Non-Proprietary articles in normal circumstances. COS/CMM : Upto Rs. 3 lakhs, Invitation of single tender and purchase require personal approval of COS/CMM.

3. For Non-Proprietary articles in emergencies affecting maintenance, out turn, operation etc.. COS/CMM : Upto Rs. 5 lakhs, Invitation of single tender and purchase require personal approval of COS/CMM.

(d) Special Limited Tender:

Except in respect of emergency purchases and safety items, this system may be applied to orders, in estimated value of which is Rs. 10 lakhs and above, with the sanction of the General Manager, subject to the following condtions:-

(a)That sufficient reasons exist which indicate that it is not in the public interest to call for tenders by advertisements.

(b) That the demand is so urgent that any additional expenditure involved by the elimination of open competition must be incurred.

(c)That in the case of proprietary articles, the sanction of the General Manager is necessary only if it is not possible to certify that a similar articles is not manufactured or sold by any other firm which could be used in lieu.

(e) Global Tender: This system is adopted in case of import purchase. The proposed import procurement should be approved from the essentially aspect by the Head of User Department and concurred in by the associate finance.

94. Can the tendered item be split to place purchase orders on two or more firms ? What consideration will you keep in mind while deciding multi sourcing ?

Answer: Where warranted, for reasons to be recorded, the tender quantity may be split and tender decided In favour of one or more firms depending on merit of each case, in consultation with FA&CAO and approved by the authority competent to accept the tender, having regard to the following factors:-

(a)Vital and critical nature of items.

(b) Quantity to be procured.

(c)Delivery requirements.

(d) Capacity of firms in the zone of consideration.

(e)Past performance of the firms.

95. What are Railway Boards guidelines to deal with situations of suspected Cartel Formation? Answer : Railway Boards guidelines to deal with situations of suspected Cartel Formation are summarized as below.

(a)Wherever all or most of the approved firms quote equal rates and cartel formation is suspected, Railways reserve the right to place order on one or more firms with exclusion of the rest without assigning any reasons whatsoever.

(b) Firms are expected to quote for a quantity not less than 50% of tendered quantity. Offers for quantity less than 50% of quantity will be considered unresponsive and shall become liable to be rejected. This however will be without any prejudice to Railway’s right to distribute the tendered quantity & place order on one or more firms.

(c)The firms who quote in cartel be warned that their names are likely to be deleted from list of approved sources.

96. Calculate the total unit rate (Excluding freight) of an offer in which basic rate is Rs. 755/- each with 5% discount, ED is 12%, Cess on ED is 3%, VAT is 5%. If the quantity is 19750 units and freight charges is Rs. 8,60,000/- (Lump Sum), Calculate total value of purchase and indicate constitution of the tender committee.
Answer: Unit Rate (excluding freight) = [{(Basic Rate – discount) + (ED + Cess on ED)} + VAT].

Unit rate (excluding freight) = [{(755 – 5%) + (12% + 3% of 13%){ + [{(755 – 5%) + (12.36%)} + 5%] = Rs. 846.19.

Qty: 19750

So, total value (excluding freight) = Rs. 846.19 x 19750

= Rs. 16712252.50

Lump sum freight charge is Rs. 860000, So, Total Value of purchase = 16712252.50 + 860000 = Rs. 17572252.50

For this case constitution of tender committee will be

Stores member (convener) - JAG User

department - JAG

Accounts member - JAG

97. What is the normal eligibility of a part-II approved vendor for ordering quantity ? What are the situations where they can be considered for bulk orders ?
Answer: Railway procure some of the items from approved sources:

Ordering on firms approved by RSDO/CORE/Pus as Part II vendors is to be limited upto 15% quantity normally. Ordering on Part-II approved sources can be beyond 15% or highest quantity of a past order for the tendered item successfully executed in the preceding 3 years in the same Railway unit or other Railway Units/Pus, whichever is higher, subject to

(i) maximum of 25% of the net procurable quantity in the given procurement case and

(ii) the tender committee/accepting authority being satisfied about the financial capacity., performance aspects, etc.

When more than one Part-II sources are within the zone of consideration on the basis of competitive price ranking with satisfactory past performance on that Railway, each Part-II sources may be considered for ordering in the same manner as indicated above. Aggregate quantity to be ordered on all Part-II approved vendors taken together, however, will not exceed 25% of the net procurable quantity, in a given procurement case.

If there is no approved source in Part-I list and approved source exist in PartII only, such Part-II firms will be considered for placement of Bulk quantity orders as well as without any quantity restrictions, otherwise applicable to Part-II firms.

98. Elaborate on the Railway Board instructions on Negotiations.

Answer: Railway Boards instructions on Negotiations are summarized as below:

There should normally be no negotiations. Negotiations will strictly be an exception rather than rule and only where rates received are unjustifiably higher and also in situation of cartel formation with unreasonable rates.

Before resorting to negotiations, adequate care should be taken to scrutinize the rates received to avoid in fructuous instances of negotiations as such negotiations may cause unnecessary delay in procurement without any appreciable reduction in rates. Negotiations, wherever held, should only be with the L-1 tenderer. In the cases where rates of part-II approved vendors were lower than the original rate of the L-1 part-1 approved source, eligible and suitable for bulk ordering with whom a price negotiation is held and if after price negotiation with the L1 part-1 approved tenderer, their rate becomes lower than that of the lowest part-II approved tenderer, then another price negotiation should be held with the lowest part-II approved tenderer subject to the condition that the firms offer is otherwise suitable and eligible for placement of an order as per extant procedure.

99. What is e-procurement and What are its benefits ? Briefly describe how the tender opening task is performed in this system.

Answer : E-procurement is the system, wherein the processes of procurement such as issue of tenders by the purchasers, comparison of offers and communications regarding the purchase process are done online through internet, maintaining adequate date security.

Benefits of e-procurement:

(i) Transparency

(ii) Wide publicity

(iii) Saving in procurement lead time

(iv) Tender opening is temper proof compared to manual tenders

(v) All the data is secured & temper proof

(vi) Delivery of tender enquiry, offers, etc. is fully ensured. Tender opening task in e-procurement systems: Officials deputed for tender opening (Stores & accounts, both) to login in the e-procurement system using their ID and digital signature after pre-decided opening time for the tenders. As soon as both the officials give command for tender opening the system (through program utilities) first authenticates the digital signatures and their authority and after authentication the virtual tender box is opened. Comparative statements and summaries of offers etc. can now be printed.

100. Differentiate between the following .

1. Single offer and single tender

Ans: Single offer: Single offer is the only one offer received against Limited, Special limited, Bulletin and Open tenders. Single Tender: When tender is issued to only one firm in special circumstances e.g. purchase against PAC, availability of only one supplier or urgent need necessitating purchase from a selected source.

2. Excise duty and Custom duty

Ans: Excise duty: Imposed by Govt. of India on manufacturers. It is imposed on goods being manufactured in India. Custom Duty: Imposed by Govt. of India on items being imported. It is imposed on goods manufactured outside India. It is imposed to protect indigenous indigenous industries.

3. Price Preference and Purchase Preference.

Ans: Price preference: It is a policy under which a firm belonging to certain category quoting higher rate as compared to the lowest technically suitable bidder becomes eligible for placement of order at its quoted rate. Purchase preference: It is a policy under which a firm belonging to certain category quoting higher rate as compared to the lowest technically suitable bidder becomes eligible for placement of order but at the rate quoted by the lowest suitable bidder.

4. Bill of Lading and Bill of Entry.

Answer : Bill of Lading : It is a document giving title to the goods, signed by the shipping company or his agent, containing the declaration regarding receipt of goods (cargo), the goods at the conditions on which transportation is made and the engagement to deliver the goods at the prescribed port of destination to the lawfull holder of the Bill of Lading. Bill of Entry : It is an application to the Customs authorities for permitting the release of goods landed or expected to be landed at port/Air port after the collection of Customs duty.

101. Write short notes on.

1. Letter of Credit.

2. Tender Committee.

3. Local Purchase.

4. Payment clause in purchase of M&P items.

Answer: 1. Letter of credit : It is a bank instrument frequently issued between banks in different countries for the payment of import contracts. It may be defined as an instrument authorizing the (issuing) bank on behalf of the purchaser (Applicant) to pay a certain sum of money to specified seller(s) (Beneficiary) provided the seller(s) submit the documents as prescribed in the Letter of Credit.

2. Tender Committee- In case of tender valued above Rs. 10 lac, the purchase is recommended by tender committee. The committee should be constituted by the authority competent to accept the tender. In tender committee case convening member will be put up recommendations to the next higher authority for acceptance. Total value of the case as on date of tender opening shall be the criteria for deciding the level of TC. TC of stores department consists of stores member who also acts as convener, technical member and finance member.

3. Local Purchase-The Controller of Stores may also make local purchases of items of small value, both stock and non-stock, up to Rs.1 lac in each case, subject to the condition that in the case of stock items, the purchases are made only where

a. The normal annual recoupment quantity does not exceed Rs.1 lac in value, or
b. The stock of the item is precariously low and the item is urgently required,
c. And that the quantity is not deliberately reduced with a view to bring the purchase within the scope of this provision.
d. He will make no purchase without satisfying himself that the price paid is reasonabl
e. The powers referred to above or other power of local purchases of stores delegated to the COS may be redelegated to the depot officers, in consultation with the FA&CAO to the extent considered necessary in each case.

4.Payment clause in purchase of M&P items.- The standard payment terms in purchase of M&P items are as under:-

80% on proof of inspection certificate and dispatch documents.
Balance 20% after satisfactory installation, commissioning and proving test of M&P subject to submission of bank guarantee for an amount of 10% of contract value, as warranty security.

102. Differentiate between F.O.B and F.A.S. :

Answer : F.A.S. : Free Along Shore : When a contract is arranged on FAS basis, the contractor is understood to undertake to deliver the goods along shore the ship at his own expenses. F.O.B. : Free on Board : When goods are purchased on FOB basis, the duty of the contractor is to deliver the goods on board ship at his own expenses for carriage to the purchaser. The purchaser is liable for freight and other subsequent charges..

103. (a)What is SOP, its need and importance?

Ans The Schedule of Powers represents inter-alia delegation of powers to the General Managers as received from Railway Board. The objectives of the Schedule of Powers is to detail the powers delegated to the Officers by the General Managers for quick decision making and decentralization. The powers delegated are to be exercised only by the authority indicated and to the extent specified. The powers are subject to existing codal procedures, rules and other extant orders issued by Railway Board from time to time. The powers are also subject to availability of funds. No redelegation is permissible unless specifically authorized by the General Managers. The delegation is grouped mainly under 3 headings

A. PHODs/HODs

B. DRM/ ADRM/ SAG Officers in field units.

C. Divisional / Extra Divisional Officers and Officers in H.Qrs.

The schedule of power is divided into 7 parts relating to works matters, miscellaneous matters, Establishment matters, Commercial matters, Stores matters and Medical matters. The latest introduction to the Schedule of Powers is the financial powers delegated to officers in Disaster Management. There are certain powers, which cannot be delegated even by the General Managers to the officers down the line. There is an attached annexure to the Schedule of Powers on every Railway which outlines the list of items requiring the personal approval/sanction of the General Manager. The General Manager’s powers are termed as negative powers because the powers outline what the General Managers can not do which implies the approval/ previous sanction of higher authority is necessary.

(b): Estimated value of purchase proposal for mechanical item was Rs. 29 lakhs. Advertised tender was floated. Lowest offer was Rs. 29.5 lakhs but technically unsuitable. Next higher offer was Rs. 32 lakhs and technically suitable. On basis of Tender committee recommendations as accepted by accepting authority, PO was placed on firm for amount Rs. 32 lakhs. Please find out following;

a) Authority who approved the purchase proposal;

b) Grades of Tender committee members who passed over the lowest technically unsuitable offer;

c) Accepting authority who finally accepted the offer.

d) PO signing authority.

Ans: a) Dy.CMM b) SMM, AFA, SME c) CMM d) Dy.CMM

104. What are the types of fabrication contracts generally entered into by railways? What factors are considered while deciding to go for fabrication contracts?

Ans. A contract to convert raw material into a finished product is called fabrication contract. Railways are entering into following types of fabrication contracts;

a) Fabrication of raw cloth into different styles of uniform;

b) Fabrication of N.F. scrap into finished item, such as bronze ingot from bronze scrap etc.

c) Fabrication of steel billets into finished materials i.e. MS rounds, track fittings etc.

d) Fabrication of paper into books and forms Factors considered while deciding to go for fabrication contracts are;

a) Whether the conversion of raw material into finished product is cheaper than the sale value that may be realised from the sale of scrap plus the cost of fabrication when compared to the cost of the finished material available in the market.

b) Whether railways themselves have the facility to fabricate.

105. What are various preferences applied for purchase of Printing and stationary stores in India? Ans: Preferences in making purchases should be given in the following order:- Firstly, to articles produced in India in the form of raw materials or manufactured in India from raw materials produced in India, provided that the quality is sufficiently good for the purpose; Secondly, to articles wholly or partially manufactured in India from imported materials, provided that the quality is sufficiently good for the purpose; Thirdly, to articles manufactured abroad and held in stock in India, provided that they are of suitable type and requisite quality; Fourthly, to articles manufactured abroad which need to be specially imported.

106. What are the types of forms, their schedule and standardisation in Indian Raiways ?
Ans: The forms in use on railways fall under two main categories: -

(a) Standard and

(b) Local. Standard forms and registers are those prescribed by Code Rules, orders of the Railway Board and which are common for all railways. Local forms and registers are those introduced under the orders of the General Manager or Chief Accounts Officer to meet local requirements. Schedule of
Forms -
Each railway should maintain a complete schedule of standard and local forms and printed registers in use on the railway. The numbers, if any, assigned by the prescribing authority to Standard Form, etc. should be adopted, without change, for use in this schedule and the forms themselves. If for any reason different numbers are assigned by the railway to such forms, the original numbers should also be exhibited alongwith for easy identification of the forms. The authority for the standard and local forms i.e., reference to the relevant paragraph of the Codes or other, should be quoted in the schedule.

Alteration or Modification of Standard Forms-
No alteration or modification in respect of the title, the distinguishing number and the information prescribed in a standard form should be made without the sanction of the Railway Board. The size and substance of paper for the forms should be as per schedule of standard forms issued by the Railway Board. Subject to this restriction, any addition or modification which may be found necessary to suit conditions purely local to a railway may be made in a standard form at the discretion of railway administration. When the revision of a standard form is undertaken by the Railway Board the railway administration will be informed in time, so that they may not print or order for, another supply without first referring to authority revising the form. The railway administration should ordinarily print and issue the revised form, after all existing stock of the old has been exhausted, but if for special reasons, it is necessary to bring the revised form into use at once, they will be advised accordingly. They should then print the new form, but any remaining stock of the old forms should not be destroyed without the orders of the General Manager. Introduction of Local Forms-No new local forms may be introduced without the approval of the General Manager or the Chief Accounts Officer.

107. Write briefly on printing of forms and registers.

Ans: Printing of Forms- Standard and local forms and printed registers should be printed in the Railway Press wherever one exists. Departments should advise the Supdt. of Ptg. and Sty. annually or half yearly, as may be arranged, of their requirements of the standard and local forms and Printed Registers. Such indents should be carefully scrutinised by the Heads of offices with relation to the statistics of work in each office and unnecessary items or quantities deleted before submission. The Printing Supdt. should make the necessary arrangements for printing, stocking a working supply and issue of the forms and registers. Printing in Outside Presses-If a railway press is unable to undertake a work on account of pressure of work or lack of suitable facilities, or the railway has no press of its own, the work may be got executed in outside presses, with the sanction of the General Manager, or that of the Heads of Departments or, other lower authorities, if power in this respect has been delegated to them by the General Manager. In arranging for printing work in outside presses, the General purchase policy should be followed.

108. Write briefly on accountal of forms and their verification.

Ans. Accountal of Forms- Numerical ledgers, only need to be maintained for forms. The receipts should be posted from the challans of the Supdt. of the Railway press and the Receipt Notes for local purchase in the case of orders on outside presses. Balances in the ledgers should be struck at the end of each month. Verification of Balances of Stationery, Forms and Printed RegistersDepartmental stock verification should be carried out as prescribed for other general stores in paragraph1339-S. Accounts Stock verification should be carried out once in three years as provided in paragraph 3327-S.

109. Discuss the necessity for prescribing uniforms.

Ans:
a) The need for easy identification of certain categories of staff by the public during their duty hours.

b) The need of protecting the staff who are exposed to extremes of weather like severe cold or heavy rain during their duty hours.

c) The need to fulfill the requirements of various Acts/Laws connected with the safety of staff during their working hours.

110. What is the scale of supply of uniforms.

Ans:
(a)The staff who are supplied with cotton garments for summer should be supplied with Three sets of uniforms every year.

(b) The staff who are supplied with terene cotton uniforms for summer should be supplied with 2 sets of uniforms every alternative years.

(c)The female employees who are supplied with cotton uniforms for summer should be supplied with 4 sets of cotton sarees-blouse pieces/ shalwar kameez cloth every year.

(d) 3 sets of terene cotton sarees- blouse pieces/ shalwar kameez cloth every alternative year. For woolen uniforms.

(a)Winter only: 2 sets in 3 years.

(b) Summer & mild winter – 1 set in 4 years.

(c)Summer and winter- 1 set in 2 years.

111. What are the various climatic zones of Indian Railway for uniform supply?

Ans: Indian Railways have been classified into ‘5’ climatic Zones.

1. Summer only: where the average daily min. temp. during the coldest month of the year is above 16.70 C

2. Summer and mild winter: where the avg. daily min. temp. during the coldest month of the year is neither above 16.70 C nor below 11.70C.

3. Summer and Winter: where the avg. daily min. temp. during the coldest month of the year is below 11.70C

4. Winter only: where the Avg. daily min. temp. during the whole year is below 11.70 C

5. Very Cold: where the avg. daily min. temp. during the whole year is below 7.2 0 C.

112. What is the timetable for submission of demands to stores depot for supply of uniforms?

Ans: Time table for submission of demands for Uniforms to store depot is as follows

SEASON Last date by which the demand should reach the supplying depot.
SUMMER 1st April of previous year
WINTER 1st October of previous year
MONSOON 1st November of previous year

113. What is budget? What are various budgeting stages? What is stores budget?

Ans: Budget is a monetary plan for a time period. It is an estimate of future cost on revenues. It sets the targets, assigns responsibility and evaluates performance. It has several stages. Budget estimate is submitted in month of November. The budget is presented to Parliament in month of February. Budget grants are approved in month of March. This is followed by August review, revised estimates, final modification and telegraphic modification. Stores budget is part of demand no. 16 (capital). Money allotted for purchase is called purchase grant. Main budget based control for expenditure on stores budget is Liability register maintained by store accounts.

114. What is ZBB? How it is different from traditional budgeting

Ans: ZBB is zero based budgeting. Budgeting under this system for each year is done taking the base as zero. In other words the budgeting for each year is to be done from scratch. Its main objective is Management by objective. In traditional budgeting, AAC’s of individual items do not match with budgetary provisions. Since procurement process is distributed over the year, items processed with inflated AAC consume and block funds. PO can’t be released for all items due to fund shortage. ZBB aims at restricting AAC as per budgetary provisions. ABC analysis is used for fund allocations. About 65% funds are allocated for A category items. AAC’s are adjusted as per budgetary provisions. Thus better and efficient fund utilisation occurs along with improved material availability. Inactive and surplus items can be controlled.

115. Why should the expenditure incurred in the purchase of stores be treated as suspense? How the said suspense is cleared?

Ans: Materials are purchased for use by railway departments e.g. maintainance of coach, wagons, locos, electric installations S&T etc. For each use, a head of account is allotted, so that the expenditure and budgeting can be done correctly. However, stock items kept in store depot have to wait till indentor draws it for use. This account is known as stores suspense. When the material is drawn by the consumer, the cost of stores is charged to the final expenditure account of the consumer, by crediting the stores suspense.

116. Explain
a) Misc. Advance Capital
b) SINT
c) Stock adjustment account

Ans: a) Misc. Advance Capital: It is operated to watch issues of stores for manufacture given to outsiders for fabrication etc.

b) SINT stands for stores in transit. Whenever stores are transferred from one depot to other, this head is operated separately for each depot.

c) Stock adjustment account: Knowing the practical difficulty involved in the receipt and issue of stores, involving thousands of items and numerous transactions, this head is provided for. It speaks about the efficiency of store keeping of a depot. It includes difference in book balance and ground balance; errors due to erroneous pricing/mistakes and other miscellaneous errors.

Q.No.159. What are provisions in IRS Terms & Conditions regarding Security Deposit?

Ans.

0500: SECURITY DEPOSIT: 0501:

Unless otherwise agreed between the Purchaser and the contractor, the contractor shall, within 14 days of written notice of acceptance of the tender has been posted to the contractor, deposit with the Railway concerned (in cash or the equivalent in Government Securities or approved Banker's Guarantee Bond) a sum equal to 10 per cent of the total value of the stores detailed in the contract for which, the tender has been accepted, subject to upper ceiling of Rs. 10 Lakhs for contracts valuing upto Rs.10 Crores & Rs.20 Lakhs for contract valuing above Rs.10 Crores.

SAFETY ITEMS:

The Security Deposit (SD)/Performance Guarantee shall be taken from all firms for contracts for all Safety Items placed against Advertised Tenders and Global Tenders subject to following exemptions: a) Vendors registered with NSIC upto the monetary limit of their registration for the items ordered Tenderers seeking waiver of Security Deposit on this ground shall have to submit requisite documentary evidence.

OTHER THAN SAFETY ITEMS:

The Security Deposit (SD) shall be taken from all firms for contracts for items other than safety items placed against Advertised Tenders and Global Tenders subject to following exemptions:

a) Vendors registered with NSIC upto the monetary limit of their registration for the items ordered.

b) Vendors registered with Railways upto the monetary limit of their registration for the items ordered/trade groups for items ordered or vendors on approved list of RDSO/PUs/ CORE/Railways etc. for those specific items for which they are on approved list or other Railways, Govt. Departments on their specific request and on merits of the case as considered by tender committee.

c) Tenderers seeking waiver of Security Deposit on this ground shall have to submit requisite documentary evidence. The usual security deposit, shall, however be taken in case the contracts are placed on unregistered/ unapproved firms or for items for which a particular firm is not registered/approved. Security Deposit should remain valid for a minimum period of 60 days beyond the date of completion of all the contractual obligations of the supplier. 0502: If the contractor, having been called upon by the Purchase to furnish security fails to make and to maintain a security deposit within the specified period, it shall be lawful for the Purchaser:

a) to recover from the Contractor the amount of such security deposit by deducting the amount from the pending bills of the contractor under the contract or any other contract with the purchaser or the Government or any person contracting through the Purchaser or otherwise however, or

b) to cancel the contract or any part thereof and to purchase or authorize the purchase of the stores at the risk and cost of the contractor and in that event the provisions of Clauses 0702 shall apply as far as applicable. 0503:

No claim shall lie against the Purchaser in respect of interest on cash deposits or Government Securities or depreciation thereof. 0504:

The Purchaser shall be entitled and it shall be lawful on his part to forfeit the said security deposit in whole or in part in the event of any default, failure or neglect on the part of the Contractor in the fulfillment or performance in all respects of the contract under reference or any other contract with the Purchaser or any part thereof to the satisfaction of the Purchaser and the Purchaser shall also be entitled to deduct from the said deposits any loss or damage which the Purchaser may suffer or be put by reason of or due to any act or other default, recoverable by the Purchaser from the Contractor in respect of the contract under reference or any other contract and in either of the events aforesaid to call upon the contractor to maintain the security deposits at its original limit by making further deposit, provided further that the Purchaser shall be entitled to recover any such claim from any sum then due or which at any time thereafter may become due to the Contractor under this or any other contracts with the Purchaser.

Q.No.160. What are provisions in IRS Terms & Conditions regarding Failure and Termination of Supply Order?

Ans. Failure and Termination:-If the Contractor fails to deliver the stores or any instalment thereof within the period fixed for such delivery in the contract or as extended or at any time repudiates the contract before the expiry of such period the Purchaser may without prejudice to his other rights:- 1

(a) recover from the Contractor as agreed liquidated damages and not by way of penalty a sum equivalent to 2 per cent of the price of any stores (including elements of taxes, duties, freight, etc.) which the Contractor has failed to deliver within the period fixed for delivery in the contract or as extended for each month or part of a month during which the delivery of such stores may be in arrears where delivery thereof is accepted after expiry of the aforesaid period, or .1

(b) 1. Risk Purchase clause is deleted for all orders for safety items, as levy of 10% Security deposit has been made compulsory in all such order/(except in case of vendors registered with NSIC upto the monetary limit of their registration for the items ordered). In case of failure of contract, Security Deposit shall be forfeited. Such failure shall be recorded & will be considered by Railways on merit in future cases.

1. 2. In respect of orders for materials other than safety items where 10% security deposit has been taken from firms, Risk Purchase clause is deleted and in case of default by such firms, the Security Deposit shall be forfeited.

2. 3. In such cases as covered under (1) and (2) above, the quantities unsupplied shall be procured independently without risk and cost of the original firm/supplier.

3. 4. Adverse performance of such firms will be recorded and intimated to the approving authority & also to be taken into account in future tender cases on merit.

4. 5. Such cases which are not covered under Para (1) & (2) above. Risk Purchase provisions shall continue for them as per existing guideline as given below. .

2(c) The Purchaser reserves the right to purchase or authorise the purchase of the stores not so delivered or others of a similar description (where stores exactly complying with particulars are not in the opinion of the Purchaser, which shall be final, readily procurable) at the risk and cost of the Contractor. .3It shall, however, be in the discretion of the purchaser to collect or not, Security Deposit from the firm/firm’s on whom the contract is placed at the risk and expense of the defaulted firm.

2(d) Where action is taken under Sub-clause

(c) above, the Contractor shall be liable for any loss which the Purchaser may sustain on that account provided the purchase or if there is an agreement to purchase 1 such agreement is made, in case of failure to deliver the stores within the period fixed for such delivery in the contract or as extended within six months from the date of such failure and in case of repudiation of the contract before the expiry of the aforesaid period of delivery, with six months from the date of cancellation of the contract. The Contractor shall not be entitled to any gain on such purchase and the manner and method of such purchase shall be in the entire discretion of the Purchaser. It shall not be necessary for the Purchaser to serve a notice of such purchase on the Contractor.

Note : In respect of the stores which are not easily available in the market and where procurement difficulties are experienced the period for making risk purchase shall be nine months instead of six months provided above.

Q.No.161. What are provisions in IRS Terms & Conditions regarding Arbitration in case of dispute in Supply Order?

Ans. 2900. Arbitration. .1(a) In the event of any question, dispute or difference arising under these conditions or any special conditions of contract, or in connection with this contract (except as to any matters the decision of which is specially provided for by these or the special conditions) the same shall be referred to the sole arbitration of a Gazetted Railway Officer appointed to be the arbitrator, by the General Manager in the case of contracts entered into by the Zonal Railways and Production Units; by any Member of the Railway Board, in the case of contracts entered into by the Railway Board and by the Head of the Organisation in respect of contracts entered into by the other Organisations under the Ministry of Railways. The Gazetted Railway Officer to be appointed as arbitrator however will not be one of those who had an opportunity to deal with the matters to which the contract relates or who in the course of their duties as railway servant have expressed views on all or any of the matters under dispute or difference. The award of the arbitrator shall be final and binding on the parties to this contract.

.2(b) In the event of the arbitrator dying, neglecting or refusing to act or resigning or being unable to act for any reason, or his award being set aside by the court for any reason, it shall be lawful for the authority appointing the arbitrator to appoint another arbitrator in place of the outgoing arbitrator in the manner aforesaid. .

3(c) It is further a term of this contract that no person other than the person appointed by the authority as aforesaid should act as arbitrator and that if for any reason that is not possible, the matter is not to be referred to 'arbitration at all. .

4(d) The arbitrator may from time-to-time with the consent of all the parties to the contract enlarge the time for making the award. .

5(e) Upon every and any such reference, the assessment of the cost incidental to the reference and award respectively shall be in the discretion of the arbitrator. .

6(f) Subject as aforesaid, the Arbitration Act, 1940 and the rules there under and any statutory modifications thereof for the time being in force shall be deemed to apply to the arbitration proceedings under this clause.

7(g) The venue of arbitration shall be the place from which the acceptance note is issued or such other place as the arbitrator at his discretion may determine. .

8(h) In this clause the authority, to appoint the arbitrator includes, if there be no such authority, the officer who is for the time being discharging the functions of that authority, whether in addition to other functions or otherwise.

Q.No.162. What is consignee’s right of rejection as per IRS Terms & Conditions?

Asn 1502. Consignee’s Right of Rejection - Notwithstanding any approval which the Inspecting Officer may have given in respect of the stores or any materials or other particulars or the work or workmanship involved in the performance of the contract (whether with or without any test carried out by the Contractor or the Inspecting Officer or under the direction of the Inspecting Officer) and not with standing delivery of the stores where so provided to the interim consignee, it shall be lawful for the consignee, on behalf of the Purchaser, to reject the stores or any part, portion or consignment thereof within a reasonable time after actual delivery thereof to him at the place or destination specified in the contract if such stores or part, portion or consignment thereof is not in all respects in conformity with the terms and conditions of the contract whether on account of any loss, deterioration or damage before despatch or delivery or during transit or otherwise howsoever.

Note-In respect of materials pre-inspected at the firm's premises the consignee will issue rejection advice within 90 days from the date of receipt.

Q.No.163. What is Book Examination Clause as per IRS Terms & Conditions?

Ans. 3300. Book Examination Clause-The Government reserves the right for 'Book Examination' as follows: -

(i) The Contractor shall whenever called upon and requiring to produce or cause to be produced for examination by any Government Officer duly authorised in that behalf, any cost or other account book of account, voucher, receipt, letter, memorandum, paper or writing or any copy of or extract from any such document and also furnish information any way relating to such transaction and procedure before the duly authorised Government Officer returns verified in such manner as may be required relating in any way to the execution of this contract or relevant for verifying or ascertaining the cost of execution of this contract (the decision of such Government Officer on the question of relevancy of any document, information of return being final and binding on the parties). The obligation imposed by this clause is without prejudice to the obligation of the contractor under any statute, rules or orders shall be binding on the Contractor.

(ii) The Contractor shall, if the authorised Government Officer so requires (whether before or after the prices have been finally fixed), afford facilities to the Government Officer concerned to visit the Contractors works for the purpose of examining the processes of manufacture and estimating or ascertaining the cost of production of the articles. If any portion of the work be entrusted or carried out by a sub-contractor or any of its subsidiary or allied firm or company, the authorised Government Officer shall have power to examine all the relevant books of such sub-contractor or any subsidiary or allied firm or company shall be open to his inspection as mentioned in clause (i).

(iii) If on such examination, it is established that the contracted price is in excess of the actual cost plus reasonable margin of profit, the Purchaser shall have the right to reduce the price and determine the amount to a reasonable level.

(iv) Where a contract provides for book examination clause, the Contractor or its agency is bound to allow examination of its books within a period of 60 days from the date the notice is received by the Contractor, or its agencies calling for the production of documents as under clause (i) above. In the event of Contractor's or his agency's failure to do so, the contract price would be reduced and determined according to the best judgement of the Purchaser which would be final and binding on the Contractor and his agencies.

Q.No.164. What is Book Examination Clause as per IRS Terms & Conditions?

Ans 3300. Book Examination Clause-The Government reserves the right for 'Book Examination' as follows: -

(i) above. In the event of Contractor's or his agency's failure to do so, the contract price would be reduced and determined according to the best judgement of the Purchaser which would be final and binding on the Contractor and his agencies.

Q.No. 165. What are provisions regarding Warranty/Guarantee in IRS Terms & Conditions?

3200. Warranty/Guarantee-3201. The Contractor/Seller hereby covenants that it is a condition of the contract that all goods/stores/articles furnished to the Purchaser under this contract shall be of the highest grade free of all defects and faults and of the best materials, quality, manufacture and workmanship throughout and consistent with the established and generally accepted standards for materials of the type ordered and in full conformity with the contract specification, drawing or sample, if any and shall, if operable, operate properly.

3202. The Contractor also guarantees that the said goods/stores/articles would continue to conform to the description and quality as aforesaid, for a period of 30 months after their delivery or 24 months from the date of placement in service whichever shall be sooner, and this warranty shall survive notwithstanding the fact that the goods/stores/articles may have been inspected, accepted and payment thereof made by the Purchaser.

3203. If during the aforesaid period, the said goods/stores/articles be discovered not to conform to the description and quality aforesaid or have deteriorated, otherwise that by fair wear and tear the decision of the Purchaser in that behalf being final and conclusive that the Purchaser will be entitled to reject the said goods/stores/articles or such portions thereof as may be discovered not to conform to the said description and quality. On such rejection, the goods/stores/articles will be at the Seller's risk. If the Contractor/Seller so desires, the rejected goods may be taken over by him or his agents for disposal such manner as he may deem fit within a period of 3 months from the date of such rejection. At the expiry of the period, no claim whatsoever shall lie against the Purchaser in respect of the said goods/stores/articles, which may be disposed of by the Purchaser in such manner as he thinks fit. Without prejudice to the generality of the foregoing, all the provisions in the Indian Railways Standard Conditions of Contract relating to the ‘rejection of stores' and ‘failure' and 'termination' add and Clause 3100- 02 above shall apply.

3204. The Contractor/Seller shall, if required, replace the goods or such portion there of as have been rejected by the Purchaser, free of cost, at the ultimate destination, or at the option of the Purchaser, the Contractor/Seller shall pay to the Purchaser, the value thereof at the contract price and such other expenditure and damage as may arise by reason of the breach of the conditions herein before specified. Nothing herein contained shall prejudice any other right of the Purchaser in that behalf under this contract or -otherwise.

Q.No.166. What are provisions regarding Removal of Rejected Stores in IRS Terms & Conditions?

Ans. 2200. Removal of Rejected Stores.

2201. On rejection of all stores submitted for inspection at a place other than the premises of the Contractor, such stores shall be removed by the Contractor at his own cost subject as hereinafter stipulated, within 21 days of the date of intimation of such rejection. If the concerned communication is addressed and posted to the Contractor at the address mentioned in the contract, it will be deemed to have been served on him at the time when such communication would be in the course of ordinary post reach the Contractor. Provided that the Inspecting Officer may call upon the Contractor to remove dangerous, infected or perishable stores within 48 hours of the receipt of such communication and the decision of the Inspecting Officer in this behalf shall be final in all respects. Provided further that where the price or part thereof has been paid, the consignee is entitled without prejudice to his other rights to retain the rejected stores till the price paid for such stores is refunded by the Contractor save that such retention shall not in any circumstances be deemed to be acceptance of the stores or waiver of rejection thereon.

2202. All rejected stores shall in any event and circumstances remain and always be at the risk of the Contractor immediately on such rejection. If such stores are not removed by the Contractor within the periods aforementioned, the Inspection Officer may remove the rejected stores and either return the same to the contractor at his risk and cost by such mode of transport as the Purchaser or Inspecting Officer may decide, or dispose of such stores at the Contractor's risk and on his account and retain such portion of the proceeds, if any from such disposal as may necessary to recover any expense incurred in connection with such disposals (or any price refundable as a consequence of such rejection). The Purchaser shall, in addition, be entitled to recover from the Contractor ground rent/demurrage charges on the rejected stores after the expiry of the time limit mentioned above.

2203. The stores that have been despatched by rail and rejected after arrival at destination may be taken back by the Contractor either at the station where they were rejected or at the station from which they were sent, after refunding the price paid for such stores and other charges refundable as a consequence of such rejection. If the contract placed for delivery f o. r. station of despatch, the Contractor shall pay the carriage charges on the rejected consignment at public tariff rates from the station of despatch to the station where they are rejected. If the Contractor elects to take back the goods at the station from which they were despatched, the goods shall in addition, be booked back to him freight to pay at public tariff rates and at owner's risk. The Contractor shall be liable to reimburse packing and incidental costs and charges incurred in such return or rejected stores in addition to other charges refundable as a consequence of rejection. The goods shall remain the property of the Contractor unless and until accepted by the Purchaser, after inspection.

Q.No.167. Describe in brief Earnest money deposit and Security deposit. Why it is required? And when it is required? In what condition it is exempted?

Ans. Earnest money deposit is taken to ensure earnestness of tenderers participating in a tender. EMD is 2% of the estimated tender value subject upper limit of Rs 5 Lakhs for tenders valuing up to Rs. 10 Cr and Rs 10 Lakh for tenders valuing above Rs. 10 Cr. EMD is liable to be forfeited in case offer is withdrawn within validity. As soon as tender is decided, EMD of firms other than the firm on whom acceptance has been done, should be released. EMD can be exempted for firms registered with, Railway, NSIC and approved by RDSO/ICF/CORE/CLW/RCF for the item being tendered. Security Deposit is taken from the firm on whom tender is accepted to ensure supply against the PO SD is 10% of the PO value subject to maximum Rs 10 Lakh in case of PO up to Rs.10 Cr and Rs20.Lakh in case of PO valuing more than Rs.10 Cr. SD can be exempted for firms registered with Rly, NSIC and approved by RDSO/CORE/ICF/CLW/DCW/DLW etc. In case of Safety item PO valuing more than Rs10 Lakh, SD should be taken but can be exempted based on merit of individual case.

PART-II Section A- Objective Questions:

(168) What is the minimum value limit of the purchase order for purchase of ‘Bleaching powered’ to be pre-impacted by RITES:

(a) ` 1 lakh

(b) ` 1.5 lakh

(d) ` 4 lakh Ans. (b) ` 1.5 lakh

(169) Which among following is not a material inspecting agency:

a) RDSO (b) DOI c) IRTS (d) RITES Ans. (c) IRTS

(170).As per IRS conditions of contract, what is the maximum period from the date of receipt of material in which material pre-inspected at the firm’s premises can be rejected at consignee end, if found unsuitable?

a) 30 days (b) 45 days b) 60 days (d) 90 days
Ans. (d) 90 days

(171) What is the period after which Electronic weighbridges need to be calibrated and certified by weights & measures deptt. ?

Ans. 1 (One) year.

172. Write full form of following:

a. ISO - International Organization for Standardization

b. BIS - Bureau of Indian Standards

c. QAP – Quality Action Plan

d. CEDE - Chief Electrical Distribution Engineer

e. DQA – Directorate of Quality Assurance

f. CPCB – Central Pollution Control Board

g. FIFO – First in first out.

h. LAW - List of Approved Works.

i. GSM - Grammage per square meter.

j. TQM - Total Quality Management

k. ASRS - Automated Storage and Retrieval System

l. NSIC - National Small Industries Corporation
m. IRS -Indian Railway Standard

173. Fill up the blanks:-

i) Issue and recoupment schedule for imprest stores is prepared in Form No……………………..

ii) In recoupment of Workshop manufactured items, ……………………..method is followed.

iii) Credit for ferrous serviceable items is given by Stores Depot at ……………….rate and for non-ferrous items………………..rate of current book rate of new items.

iv) Form number……………..is used for requisition-cum-issue note.

v) Gate Pass is prepared in……………….number of copies.

vi) Sanctioned imprest is to be periodically reviewed with interval not less than………….months.

vii) The sub head of Stores suspense meant for ‘Stores in transit’ is ………………….

viii) Batteries should be issued with……… principle.

ix) Glass sheets should be kept ……………………… in the wooden crates.

x) The petrol should confirm to the requirements of ……………… Act.

Answers

i) S-1830 ii) Maximum-Minimum iii) 1/3rd ,1/2 iv) S-1313 v) Two vi) Six vii)7170 viii) FIFO ix)Vertically x) Explosive

174. Identify whether the following sentences are True Or False :-

i) If an Issue Note is cancelled for any reason, it can be destroyed ( True / False )

ii)Gate Pass can be signed by concerned Section clerk or DMS. ( True / False )

iii) Emergency purchase is initiated when the stock level drops to Nil . (True / False )

iv) Covered dues are the dues for which purchase orders are yet to be issued (True / False )

v) If interim period figure is negative, it means that sum of stock and dues is more than interim period requirement ( True / False )

vi) All issue tickets, not complied within the same day, should be cancelled. ( True / False )

vii) Lead time is the time taken between date of recoupment need and beginning of contract period. ( True / False )

viii)Depot transfer is transfer of stores from one ward to another ward. ( True / False ) ix)Departmental stock verification of physical balance is done by ward keeper in-charge of the item of stores. (True / False )

x)The cost of Charged off imprest stores is debited to revenue working expenses. ( True / False ) xi)Workshop officials are prohibited from holding of stores of any kind other than those actually used in repair or manufacture works. ( True / False )

xii)Custody stores is verified annually by store verifier of Accounts Department. ( True / False ) xiii)Requisition for consumable stores is submitted monthly. ( True / False )

xiv) Imprest store held by imprest holder is generally kept by two month’s average consumption. ( True / False )

xv) Imprest store is recouped with recouped quantity being equal to imprest sanctioned irrespective of stock balance available. ( True / False )

xvi) Stock sheets must be prepared after each stock verification irrespective of whether the physical balance matches with book balance or not. ( True / False )

xvii) Leather goods should be kept in closed and warmer sheds. ( True / False )

xviii)Paints should be issued with LIFO principle. ( True / False )

xix) Rubber items should be stored in very cool room. ( True / False )

xx) Grinding wheel should be turned periodically to prevent de-shaping. ( True / False )

Ans. i) False ii) False iii) False iv) False v) True vi) True vii) False viii) False ix) False x) True xi) True xii) True xiii) True xiv) True xv) False xvi) False xvii) False xviii) False xix)True xx) True

175 . Write the Full form:- (i) EOQ (ii) PAC (iii) CRIS (iv) WMS (v) FDP (vi) IREPS (vii) RTGS (viii) MUF (ix) TCS (x) LAR

Ans. (i) Economic Order Quantity (ii) Proprietary Article Certificate (iii) Centre for Railway Information System (iv) Workshop Manufacturing Suspense (v) Free Delivery Period (vi) Indian Railways E-Procurement System (vii) Real Time Gross Settlement (viii) Monthly Usage Factor (ix) Tax Collected at Source (x) Last Accepted Rate

176. Who is the competent authority to conduct the E-Auction of P.way Scrap?
Ans. Dy. CMM

177. Write down three items exempted from preview of survey?

Ans.(i) Turning & Boring (ii) Rails (iii) Condemned Rolling Stocks

178. What is Free Delivery Period?

Ans. Fee Delivery Period is free time allowed to purchaser during which he has to lift the sold material from Railway premises. This period is generally 50 days.

179. What is Reserve Price?

Ans. The decision to sell or not to sell a particular lot during the auction is taken by the Depot Officer. For taking this decision, he fixes a Price of each lot in advance which is known as Reserve Price.

180. what is E-Auction?

Ans. E-Auction is the Electronic mode of Conducting the Auction Process Online as opposed to manual auctions. The Depot user can create Auction Schedules, Catalogues etc. and bidders can participate online in E-auction.

182. Is it mandatory to fill the Last Accepted Rates (LAR) of every lot in E-Auction?

Ans. No.

183. Is RP (Reserve Price) filling mandatory in E-Auction ?

Ans. Yes, RP filling is mandatory and only those Lots whose RP has been filled will be open for bidding. Lots for which RP has not been entered before scheduled starting time of ‘auction for the lot/catalogue’ will be automatically withdrawn.

184. What is the role of account’s ISA in E-Auction ?

Ans. : The Accounts ISA can monitor the Bidding Process; can view Bid History for all lots and an also View and Sign Bid Sheet in E-auction.

185. What is the amount of one time registration fee for Bidding in E-auction ?

Ans. Rs.10000/-

186. What is the name of website for login in E-auction?

Ans. www.ireps.gov.in

187. Do the bidding stop after office closing time in E-auction?

Ans. No.

188. What is Covered & Uncovered dues?

Ans. (a) Covered Dues : Dues are known as Covered Dues, when our previous recoupment sheets/Estimate sheets have been covered by purchase orders but the materials have not yet been supplied by the firm. Hence, Covered Dues are the outstanding quantities against all live purchase orders.

(b) Uncovered Dues : If a previous recoupment sheet has not been covered by Purchase Order or is only partly covered, quantities outstanding for coverage against previous Recoupment sheets are known as Uncovered Dues.

189. What is full form of GRIP & NRIP ?

Ans. GRIP-Gross Requirement for Interim Period NRIP-Net Requirement for Interim period

190. What is the formula for correlation between GRIP & NRIP ?

Ans. NRIP = GRIP – (Stock + Dues)

191. In how many days the balance sale value should be deposited for lot sold in auction value upto Rs.1 lakh ?

Ans. Within 10 days from Auction date.

192. What is full form of EMD & BSV ?

Ans. EMD- Earnest Money Deposit BSV- Balance Sale Value

193. What is the full form of MOEF & CPCB ?
Ans. MOEF- Ministry of Environment and Forests CPCB- Central Pollution Control Board 194. What are power of Sr.DMM in division to place purchase order against Rate Contract?

Ans.Rs 3 Laks per case

195. Write true or False:

(i) Contract period is always equal to Interim period .

(ii) It is necessary to produce an affidavit to bidder to Railway user at the time of Registration for E-Auction .

(iii)The bidders has to submit only one time registration fee in E-Auction.

(iv) Railway user can see any bidder’s identity during bidding in E-Auction.

(v) Maximum minimum method is also known as P.System.

Ans.

(i) False

(ii) True

(iii) True

(iv) False

(v) False

196. What is Free Delivery period without ground rent in Auction?

(a) 20 days

(b) 40 days

(c ) 50 days

(D) 65 days

Ans.(c) 50 days

197. Which class of Digital Signature Certificate to Bidders is required?

(a) Class-I

(b) Class-I I

(D) Class-IV
Ans. (c) Class-III

198. Buffer Stock is also known as:

(a) Critical stock

(b) Safety Stock

(d) emergency stock

Ans. (b) Safety Stock

199. Which is following scrap items are not condemned by the survey committee in the scrap depot ?

(a) Wagon

(b) MS Sheet

(d) Coupler Body.
Ans. (a) Wagon

200. What is the power Dy.CMM of a stores depot for making purchase of urgently required stock items through limited tender?

(a) 1 lakhs per case

(b) 2 laksh per case

(c ) 3 lakh per case

(d) 5 lakh per case.
Ans. (c) Rs 3 Lakh per case

201. Who is the accepting authority in Tender Committee for the tender sale value between 10 lakh to 40 lakh ?

Ans . SAG officer or CMM 202. After Which value, it is necessary to obtain quotation from more than one firm in local purchase?

(a) 2000/-

(b) 5000/-

(d) 20000/-
Ans. (c) Rs 10000/-

203. Which of the following is not allotted to ISA in E-Auction ?

( a) view Bid History

(b) Create Auction Catalogue

(d) Sign Bid Sheet.

Ans. (b) Create Auction Catalogue

204. For an item having annual consumption equal to 600 nos., maxima and minima are respectively equal to 12 and 8 months consumption. Physical stock of this item on different dates was as under : 1.1.13 ----- 500 ; 1.2.13 ---- 450 ; 1.3.13 -----400 ; 1.4.13 ---- 300 ; When his item should have been recouped on?

A)1.1.13

B) 1.2.13

C) 1.3.13

D) 1.4.13
Ans. (C) 1.3.13

205. In which form, Materials not required are returned to the nominated stores depot as per stores code ?

(a) S – 1539

(b) S-1739

(d) SS-11
Ans. (a) S-1539

206. Disposal of scrap may be done by

(a) Auction

(b) Sale by tender

(d) All above Ans. (d) All Above

207. Stock of an item with a Section Engineer on 01-06-2013 was 500 nos. Sanctioned imprest of this item is 1500 nos. Quantity of the item to be recouped by him would be equal to

A) 500 nos.

B) 1500 nos

C) 1000 nos

D) 2000 nos
Ans. (C) 1000 nos

208. EOQ is the Quantity at which –

A) Inventory carrying cost is maximum

B) Warehousing cost is minimum

C) Inventory carrying cost + ordering cost is maximum

D) Inventory carrying cost + ordering cost is minimum
Ans.(D) Inventory carrying cost + ordering cost is minimum

209.Which is the System of Recoupment to be followed for recouping Emergency stores ?

A) Maxima- Minima

B) Periodic review

C) Base stock

D) Combination of (A) & (B)
Ans. (C) Base Stock

210. What is the frequency of verification of Stores with Imprest Holders?

(a) once in 1 year

(b) once in 2 year

(d) once in 6 month
Ans. (b) once in 2 year

211. Which is the inspecting staff associated with Account Inspection of Stations?

Ans. Travelling Inspector of Accounts / Inspector of Station Accounts

212. What is the frequency of verification of Tools & Plant items by Accounts?

Ans. Once in 3 years.

213. In how many copies, Accounts Inspection Report Part-I and Part-II are prepared?

Ans. Accounts Inspection Report Part-I are prepared in Triplicate (3 copies) and PartII in Duplicate (2 copies).

214. Can the depot user withdraw the lots from published auction catalogue before start of E-auction ?

Ans. Yes, Lots can be withdrawn from published auction catalogue by authorized Depot User before start of auction. Withdrawal of Lots during running auction can be done only by Auction conducting officer.

215. WHAT ARE THE PRIVILEGES OF DEPOT ADMIN?

Ans. Depot Admin is created at the time of Depot Creation by CRIS, by default all functions including RP fixation and view, Decision about sale of lot etc. apart from routine functions like creating depot users, Creating Auction Schedule, Lot Creation, Catalogue Creation, Auction register preparation etc. are allotted to him. Only Auction Conducting Officer should be nominated as Depot Administrator.

216. ‘A’ category items are verified-

(a) Once in a year

(b) Once in two year

(d) Once in 9 months
Ans: (C)

217. M&P items are verified-
(a) Once in a year

(b) Once in two year

(d)Once in four years
Ans: (C)

218. Which of the following items need not to be verified-

(a) Dunnage

(b) Petty consumable stores

(d)All of the above
Ans: (D)

219. Presence of which of the following is essential during the Stock Verification?

(a) Depot officer

(b) Depot material supdt. or someone deputed on his behalf

220. In ABC analysis, which items are are given more attention from inventory control point of view ?

(a) A Category

(b) B Category

(d)Equal attention to all
Ans: (a)

221. T.O.R. is the ratio of-

(a) Balance and issue

(b) Issue and balance

(d) Receipt and balance
Ans: (a)

222. Which of the following analysis gives more attention to the service level-

(a) ABC Analysis

(b) VED Analysis

(d) XYZ Analysis
Ans: (b)

223. Surplus items are-

(a) Item not moved for 12 months

(b) Item not moved for 24 months

(b) None of these
Ans: (b)

224. Which of the following is not a penalty-

(a) Suspension

(b) Removal from service

(d) Reduction to lower grade
Ans: (a)

225. No. of LAP in a year- (a) 8 (b) 60 (c) 30 (d) 20
Ans: (c)

226. Officer empowerd to accept a tender valuing ` 10 lakh is--
(a) AMM (b) SMM (c) Dy.CMM (d) CMM
Ans: (c)

227. All charges for maintenance and repairs after opening of the line for traffic are accounted under head: (a) Capital (b) DRF (c) OLW (d) Ordinary Revenue
Ans : (d)

228. Registration of firm is treated as provisional until the firm

(i) has executed satisfactorily one order

(ii) has secured one order

(iii) has received one tender
(iv) All of the above
Ans : (i)

229. Raw material issued to private factory for fabrication shall be charged to:
a) WMS
b) SINT
c) Sale Suspense
d) Misc. Adv Capital.
Ans: (d)

74. Variety reduction is adversely affected by:

a) Lack of coordination amongst users and depots

b) Improper classification /specification

c) Desire for variety.

d) All the above.
Ans: (d)

230. Standardization does not affect:

a) Manufacturing cost

b) Manufacturing process
c) Warehousing operation
d) None of the above
Ans: (d)

231. Railway Stores have been classified into:
(a) 36 groups
(b) 49 groups
(c) 75 groups
(d) 56 groups

Ans : ( c )

232. First two digits in any price list No represent:

(a) Part Number
(b) Specification Number
(c) Drawing Number
(d) Group Number
Ans: (d)

233. Signals & Telecommunication Stores are dealt in groups:
(a) 50-59
(b) 40- 49
(c) 70-79
(d) 10-19
Ans: (a)

234. List various foreign standards used in India.

Ans: 1. BSS – British Standard Specification

2. ASA – American Standards Association.

3. ASTM - American Society of Testing Materials.

4. SAE – Society of Automobile Engineers.

5. API – American Petroleum Institute.

6. DIN – German Standards.

7. JIS – Japanese Standards.

8. NF – French Standards.

9. CSN – Czechoslovak Standards.

10.UNI – Italian Standards.

11.GOST – USSR Standards.

12.CSA – Canadian Standards.

13.ISO – International Organization for Standardization.

235. Exception Reports are generated by Computer Section:
a) Monthly
b) Quarterly
c) Annually
d) For special purposes whenever required
Ans: ( d )

236. MMIS Alerts can not be released in the form of:
a) SMS
(b) E Mail
c) Video
d) All of the above
Ans: (c)

237. Unified PLs reduces the possibility of:
a) Duplicate PL Nos.
b) Non-Uniformity over Indian Railways
c) Non-Standardization of Items
d) All of the above
Ans: (d)

PART-B Descriptive Questions:

238. From which different sources stores are received in a depot, please describe in detail.

Ans. Stores are received in a depot through the following sources:-

(i) Against Purchase:

(a) Indigenous purchases- In case the original receipt and inspection of stores from the firms are centralized in one station, the inspecting and receiving Officer will issue the Receipt Note (S, 726) and forward the relevant foils to the stores depot concerned. In other cases, the Receipt Section of the depot receiving the material from the firm will issue the necessary Receipt note (S. 719 or S. 726). In certain cases as when stores are obtained from the National Instruments (Private) ltd,, or the Controller of Printing and Stationery, the supplies will be supported by the forms of the department making the supply.

(b) Imports.- Such stores will be supported by Advices of Despatch (S. 948) prepared by officer landing the stores.

(ii) Manufactures from Workshops.- The workshops send the materials under “Material supplied to Stores Form” (S. 1531).

(iii) Returned Stores.- These will be received on Advice Notes of Returned Stores (S. 1539) from the several departments of the Railway.

(iv) Depot Transfers.- These will be received on the special issue notes (S.1320) for such transactions.

(v) Sale/Loan of stores from other railways, etc.

(vi) Materials sent by departments to depot attached to workshops, not for stock, but for transmission to the workshops for repair & c.

(vii) Sample received from firms.

(viii) Returnable empties (optionally or otherwise).

Q.239.What is unit piling? Explain.

Ans. Unit Piling.- In order to enable the compact stocking of material and to allow of the existing stock at any time to be ascertained at a glance, a system of stocking the stores so many deep to a row and so many rows to a layer of the stores, or in cases of small items, s system of packing in bags uniform quantities of items in convenient weights or number based on average quantities for one issue should be adopted, In addition, wherever practicable, graduation makers should be painted on bins to show certain previously ascertained quantities which would enable a busy depot store-keeper, incharge of materials to know at a glance the approximate stocks in his custody and assist him in taking steps prompt recoupment.

Q.240.Are depot officers empowered to accept stores dispatched by the supplier after the expiry of delivery period of the purchase orders placed by COS office ? Is there any value and time limit for such cases and what are the exceptions of POs where such powers can not be exercised?

Ans. Powers to depot officers to accept the stores dispatched by the supplier after the expiry of delivery period of the purchase orders placed by COS office are as below:

Q.241.What are the different categories of items for deciding the agencies for vender approval, vender development & inspection of the items? Explain in detail.

Ans. Categories of items:- As per the directives of the Board issued vide letter number 99/RS(G)709/1Pt.I dated 11.03.05, the different categories are defined as under:

(i) For category-III items, PUs are also permitted to develop new sources. In all such cases the first inspection of the bulk procurement must be carried out by RDSO and after final approval of the vendor on successful completion of the first bulk order, the vendor be incorporated in RDSO’s approved vendor list without any need for reassessment by RDSO.

(ii) In case of Loco items, the PUs may develop and register vendors which are essential to continue the ongoing indigenization programme for the locomotives.

Q.242.What are the duties of Depot Material Superintend?
Ans. Duties of Depot Material Superintend:- Depending on the section he is placed incharge of, the Depot Material Superintend shall be responsible for the discharge of the relevant items among the list of duties shown below :

(a) All correspondence by wards with departments will pass through the Depot Material Superintend, who will put them up to the Depot Officer, if necessary.

(b) The Depot Material Superintend will deal with all correspondence regarding stock verification reports.

(d) He will attend to complaints regarding shortages and delay in supplies, and bring all serious complaints to the notice of the Depot Officer.

(e) He will see that every convenience is placed at the disposal of the Accounts Stock Verifier for accurate and speedy verification of stocks and that store department witnesses attend and vary out their functions properly.

(f) He will check the figures of stock and consumption shown by wards on Annual Contract Statements (S.603).

(g) He will make surprise checks of packages by opening them and comparing the contents with the corresponding issue notes, and will initial the record copy of the issue notes so checked.

(h) He will supervise generally that material is properly handed over to the Dispatch Section, and that material is properly packed, whether packed by the ward or the Dispatch section.

(i) He will maintain general supervision over the wards, and see that material is properly stocked and looked after and kept in the correct bins and shelves.

(j) He will have under his direct control the registration of requisitions and their distribution to wards. (k) He will allot the duties of the clerical relieving staff of the depot.

(l) He will see that shunting operations are properly carried out in the yard, and that wagons are put in their proper places and to time.

(m) He will maintain an Inward and Outward Wagon Register (S.1215).

(n) He will personally check, with the Wagon Registers, the Authority for removal of wagons and the Weekly statement sent by the Traffic Department of the wagons sent to, and received from, the Yard. In the event of any discrepancy, he will immediately report it to the Depot Officer, for investigation. (o) He will pay surprise visits at night to the stores yard, and see that the chowkidari staff are alert and at their posts.

(p) He will maintain an inventory of all articles of dead stock, viz., plant, machinery, furniture, tools, instruments etc., at each depot in Inventory Books (S. 2001) maintained separately for each depot.

(q) He will prepare indents for consumable stores and tools and plant required by the depots, and will put them up to the Depot Officer for signature.

(r) He will arrange to test all weigh-bridges and weighing machines in the store yards and wards once in a month in the first week of the month. He will record the results of the check in a manuscript register (S. 1209) to be maintained specially for the purpose and will put it up to the Depot Officer whenever the results of test show any appreciable difference. Where there is no Depot Material Superintend of the lower grade, the Depot Material Superintend will in addition be responsible for: (s) The control and supervision of all labour and chowkidari staff, if provided instead of RPF staff, including a surprise roll call of all such staff at least once a weak.

(t) The correct preparation of Labour Muster Rolls.

(u) Witnessing the payment of labour staff and chowkidars.

(v) Seeing that the Yard is kept tidy, and reporting when necessary, on the state of roads, sidings, building & c,

(w) Seeing that the fire arrangements are kept up-to-date and that fire drills are held at least once a month.

(x) Preparing requisitions for repairs to material either by railway workshops or outside firms.

Q.243.Explain the procedure for accountal of materials received without documents:

Ans. Materials received without Documents.- Whenever any material is received without the accompanying documents, the Yard Foreman should enter all relevant details in the Wagon Register (S.1215) and immediately report such cases with full details to the Receipt Section and obtain the papers, if they are in that section. If they have not been received from the parties concerned the Receipt Section should enter such cases with full particulars, as far as available, from the Railway Receipts in a manuscript register (S. 1217) and if the documents are not received within three days from the receipt of the material, a letter should be addressed to the party concerned calling for the documents, copy of such letters being sent to his immediate superiors and district of divisional officer. The cases should be pursued till the documents are received and the stores are properly disposed off or if there is delay of over a month or if material is to be issued urgently or the party sending the material cannot be traced, the stores should be taken into stock by credit to stock Adjustment account.

Q.244. In how many copies Receipt Order is prepared? What is the distribution of the copies of Receipt Order?

Ans. Receipt Order is prepared in 4 copies. First copy of the Receipt Order is kept for the record of Receipt Section of the depot, Second Copy is kept by the stocking ward of the depot, Third copy is forwarded to FA&CAO office and fourth copy which is pink in color is sent to the supplier.

Q.245. Describe the R.O. number scheme in detail.

Ans. R. O. No (Reciept Order No.)- A 9 digit coding structure is adopted as shown below: Structure Position; : XX XXXX XX X Type of R. O. Serial Month in Last digit of Receipt Number two digits the year

i). Codes for type of receipt:

Type of Receipt Stock Non-stock

* COS Purchase for the depot 01 51

* Transit depot where the material is inspected but is 02 52
meant for other depot

* DGS&D purchase, including RC/RGC 03 53

* Imported 04 54

* Railway Board contract 05 55

* Other Railways 06 56

* Imprest R. Os/Petty Purchases 07 57
* Fabrication orders 08 58

ii). Four digit consecutive serial number is to be adopted sequentially to be changed once in a year or when the block reaches the maximum.

Q.246.What is ASRS? Explain the working of ASRS and how it can be beneficial to use in a Stores depot.
Ans. hindi

Q.247. How the inventory turnover Ratio is calculated?Inventory opening balance of a depot was ` 2.5 Crore. Receipt from various supplies during the year was ` 10 Crore, and materials worth ` 0.75 Crores were collected from other depots on depot transfer. Materials worth ` 10 Crores were issued by the depot during the year to various users, and materials worth ` 1.25 Crore were transferred to other depots on depot transfer. Calculate percentage inventory tune over ratio for this depot at the end of the year.

Ans. Inventory Closing Balance Inventory Turn Over Ratio = ------------------------------------ x 100

Total Issue during the year Opening Balance = 2.5 Cr. Receipt

= (10Cr. + 0.75 Cr. – 1.25 Cr.)

= 9.5 Cr. Issue = 10 Cr. Closing Balance = (2.5 + 9.5 -10)

= 2 Cr. 2 T.O.R. = ------------- x 100 = 20 % 10

Q.248. What are the parameters to be considered in designing a Model Stores Depot?

Ans. A good lay out aims at the following:

- Maximum utilization of available space providing for safety and security.
- Less material handling. - Better facilities for inspection.
- Avoid congestion and achieve greater efficiency of the stores depot.
- Avoid multiple handing of the material. - Facilitate to strictly observe ‘First-in-First-out’ procedure. - Better utilization of equipment and man power.
-Building factor, including the security aspect against fire, theft and pilferage.
- Man power factor,
- Service factor & Flexibility factor. In addition, the following aspects also should be considered.
- Flow of material should be simple and unidirectional, as far as possible.
- Scope for future expansion.
-Office accommodation, approach roads, separate Godowns / enclusures for oil, oxygen, paint, timber, Acids, chemicals and strong rooms for precious, pilfergable, non-ferrous items etc.
- Construction of sump for fire fighting hydrants with approach road facilities, fire extinguishers, etc. - Compound wall of sufficient height.
- There should be one main gate (for road) with one rail gate (Rail connectivity) for allowing wagons to be placed inside the depot.
-Lighting in the yard, inside godowns and along the compound wall and provision of tower lights/watch towers. -Provisioning of handling equipments.

Q. 249.A 9 MT scrap material lot was sold at the rate of ` 25,300/- per MT in one of the stores depot in NCR in auction on dt. 10/10/2013. Calculate & reply following for the lot:

i) Total sale value

ii) Earnest money for the lot

iii) Balance sale value

iv) Last date for depositing balance sale value without interest.

v) Last date for free delivery.

vi) The purchaser wants to deposit the balance sale value in installments. How many installments (maximum) can be allowed in this case.

vii) The purchaser wants to deposit balance sale value on date 8/11/2013, then how much amount shall the purchaser deposit as interest (Base rate of SBI on the auction date was 10%).
viii) Purchaser took the delivery of the lot on date 5/12/2013. Calculate the amount of ground rent payable.

Ans. i) Total Sale value = 253000 x 9 = ` 2, 27,700.00

ii) EMD = 10% of sale value = ` 22,770.00

iii) Balance Sale Value = ` 2,27,700 – 22,770 = ` 2,04,930.

iv) LDP = 20 days including auction day : 29.10.2013.

v) FDP = 50 days including auction day : 28.11.2013.

vi) Only 1 installment.

vii) Rate of interest will be = 17% (7% above the base rate of SBI) & interest shall be applicable for 10 days.

204930 x 10 x17 Interest amount = -------------------- = ` 967.72 = ` 968.

100 x 360 (Taking 12 months of 30 days each in a year) Else, if 365 days are taken in a year then interest amount will be 204930 x 10 x 17 -------------------- = ` 954.46 = ` 955.

100 x 365 Practically, it is calculated taking 360 days in a year. Hence if any candidate calculates it with 360 days (or 365 days) in a year it is to be treated as correct.

viii) Ground Rent: ½ % per day & Delay is of 7 days. (227700 x 7 x 0.5) GR = ---------------------- = ` 7969.5 = ` 7970. 100

Q.250. Explain in detail the purchase order numbering scheme followed in N. C. Railway.

Ans. Purchase order numbering scheme:-

1) The purchase order number will be of 17 digits as shown below:- XX XX XXXX X XXXXX XXX Case No. Type of PO five digit PO No. PO item serial No.

1.1 First eight digits of P.O. No. represents the case number.

1.2 Type of order: XX XX XXXX X XXXXX XXX The 9th digit of the purchase order number signifies whether the order is a local purchase order or a rate/running contract order or Indent purchase or Boards contract. The relevant code nos to be allotted for different types of orders as well as their significance are indicated below. Types of order & their significance Code No.

a. Purchase order placed by COS on Foreign Suppliers. 0

b. Purchase order placed by the COS/Depot officers/Divl. Controller 1 of stores (Other than DGS&Ds rate & Running Contract orders).

c. Supply orders placed by the COS/Depot officers/Divl. 2 Controller of stores against DGS&Ds rate contract.

d. Supply orders placed by the COS/Depot officers/Divl. Corntroller 3 of stores against DGS&Ds running contracts.

e. Fabrication orders placed by the COS/Depot officers/Divl. Corntroller 4 of stores.

f. Indent placed on DGS&D and its Regional Directorates 6

g. Acceptance of tenders issued by the Rly. Bd.7

h. Indent/supply orders placed on production units 8

i. Indent/supply orders placed on the other Railways excluding Production units.

9 The appropriate code number as above should be incorporated for the 9th digit in the purchase order number.

1.3.1 Five digit P.O. Number:- XX XX XXXX X XXXXX XXX The Next 5 Digits i.e. 10th to 14th Digit Represent the Serial Numbers of the purchase order.

1.3.2 For orders placed by the COS Office, (one section will allot the serial nos centrally) the series listed below will be adopted for different categories of orders/Indent’s.

ORDER SERIAL BLOCK

Stock Items Non stock items From To From To

i) Indents 00001 00999 40000 40999

ii) COS Purchase orders 01000 34999 41000 45999 where payment is to be made by FA&COS

iii) DGS&Ds A/T Rate & 35000 36999 46000 47999 Running contracts & Rly Bds Orders

iv) Direct Delivery orders: (i.e. for non stock items delivered direct to the consignee). The serial block will be 60000 to 89499 and depending upon the paying authorities serial block as under will be adopted.

PAYING AUTHORITY FROM TO

1. WAO/JHS 60000 62999
2. WAO/GWL 63000 65999

3. FA7CAO/C 690000 71999

4. SAO/C/JHS 72000 74999

5. SAO/C/AGC 75000 77999

6. SR. DFM/ALD 78000 80999

7. SR. DFM/JHS 81000 83999

8. SR. DFM/AGC 84000 86999

9. SAO (CSP)/SFG/ALD 87000 88999

10. FA&CAO/RPMU 89000 89499

1.3.3 Common 5 digit order serial number block for Depots/Divisional Material Managers are given below as under:- Stock items 50000 to 54999 Non-stock items 55000 to 59999

1.4 LAST THREE DIGIT OF PURCHASE ORDER XX XX XXXX X XXXXX XXXX The last 3 digits of the purchase order are a product of

(i) number of demands covered

(ii) No. of items included in the order

(iii) number of consignee. In case of severable contract the product is to be multiplied further by the number of delivery installments.

Q 251. What are the pre checks to be done by depot before issue of material on requisition submitted by indenting party?

Ans. Before issue of materials on requisition, the same should be checked to see that :-

a) the requisition form is filled correctly and there is no alteration or overwriting.

b) the requisition is signed by the authority competent to do so.

c) the certificate of fund availability is given.

d) the head of Account to which chargeable is given.

e) number of copies required are forth coming

f) one form of requisition contain only one item.

Q.252. In how many copies requisition-cum-issue note is prepared by indenter? What is the distribution and disposal of all the copies of requisition-cum-issue note ?

Ans. The "Requisition and Issue Note" should be prepared in six foils by the indenter in form no. S-1313. The indenter retains the first foil as his office copy. The other five foils are sent by him to the depot office which passes it on to the ward. After filling in the issue note portion by carbon process on all the five foils the ward keeper should distribute them as laid down below.

(a) The Second and Third foils:

These should be handed over to the Despatch Section along with the material. The Despatch Section will pass them on to the stores van clerk, if the material is being sent by the stores van, or send them to the indentor by post along with the Railway Receipt for despatch of the material. The indentor should retain the second foil and return the third foil through the stores van clerk or by the post as an acknowledgement for the material. This foil should be pasted to the depot's office copy of the issue note (the sixth foil). Any delay in returning this acknowledgement foil of the issue note should be promptly taken up by the Requisition Register Sub-section where the office copy foil (the sixth foil) should be inspected periodically in order to take up such omissions. The indentor should note on his office copy (the first foil) particulars of the Issue Note No., date quantity actually issued by the depot and latter forward the second foil to the District or Divisional Officer for check with the fifth foil which will accompany the summary of issues sent by the Stores Accounts Office of the District, or Divisional Officer.

(b) The fourth, fifth and sixth foils:

These should be forwarded by the ward-keeper to the Ledger Section along with the forwarding memo of issue notes. The sixth foil should be despatched by the Ledger Section and handed over to the Requisition Register clerks for posting the column "action taken" in the Requisition Register and for filling as record later on. The other two foils, (that is, the fourth and fifth) will be sent to the Stores Accounts Office (after the numerical ledgers have been posted) where one copy (the fourth foil) will be used for posting the priced ledgers .Org and later retained as record and the other (the fifth) will be used for preparing a summary of issues along with which it will be sent to the departmental officer for posting thereform the debits in his Revenue Abstract or other book of accounts. This copy will be retained by the departmental officer.

Q.253. Write short note on the following :-
a) Gate Pass

b) Dispatch Section and procedure for dispatch of stores
c) Pending demand & disposal

Ans. a) Gate Passes.: No material may be allowed to go outside the gates unless specified on a Gate Pass or Authority for Removal of Wagons. Gate passes should be prepared in duplicate. Each Gate Pass (S. 1350) should show the following particulars.

(1) The number of men, with their ticket numbers.

(2) The number of packages.

(3) The number and date of voucher on which the material is sent.

(4) To whom sent and purpose for which sent.

(5) Whether Railway or Private Property. All material, except material loaded in lorries passing out of stores premises, should be examined and checked with the Gate Pass by the Gate Keeper, with the Assistance of the Chowkidars. For material loaded in lorries, a percentage only need checked. The Gate-keeper will also be responsible for seeing that all Gate Passes are correctly made out and that for the materials entered thereon, reference to an issue note or indent or some other letter or voucher is quoted. Gate Passes for material loaded in a lorry should show the number of packages in the lorry, and the total number of vouchers. All Gate passes should be scored across in order to prevent their misuse and then filed by the Gatekeeper in separate files for each section issuing them.

3.b) The work of despatching stores is an important function in the matter of the issue of stores and is best centralized in a Despatch Section independent of the wards and of the Ledger Section. This section may be divided into sub-sections, certain groups of stores being allotted to each for despatch. The men in this section should be properly trained in the know- ledge of stores in order to avoid mistakes in despatch. The Supervisor of the Despatch Section should also be in charge of the store delivery vans and the staff required for working them. The Despatch Section should maintain a Register of Despatches in Form S. 1345 to record all the issue notes handed over to the section for despatch of the stores. This register should show the following particulars :

1. Date.

2. Issue note number and date.

3. Consignee.

4. Requisition number and date.

5. Description of material and price list number.

6. Packing particulars- Quantity, Packing serial number, Packed in box, package, bag or bundle, Net weight, Gross weight.

7. Credit Note No. and date

.8. Railway Receipt No. and date.

9. Gate Pass or Authority to Remove Wagons, number and date.

10. Remarks (wagon number, &

C). This register should also serve as the Outward Wagon Register. The supervisor of the Despatch Section should present this register daily to the ward- keeper of each ward. The latter should personally fill in columns 1,2, 3, 4 and 5 with reference to all depot transfer forms and issue notes that are handed over to the Despatch Section. The Despatch Section should fill in the remaining columns of the register, columns 6, 7 and 8 not being filled in when material is despatched by store van, in which case only the number of the van need be entered in the remarks column.The Despatch Section will prepare the Credit Notes and make all necessary arrangements for the despatch of the material. 3

c) Pending demands are requisitions for supplies which have been received by a depot from indentors on the line, but which the depot has failed to satisfy due to the depot stocks of the stores asked for having been exhausted. When a ward is not able to supply a requisition either in part or in full and can offer no acceptable substitutes, the ward should attach to the requisition a printed slip carrying the legend 'NO STOCK' or 'Part Supply Made'. The requisition should then be sent to the Ledger Section. On receipt in the Ledger Section they should be entered in a 'Pending Demand Sheet' in form no. S-1336. The Pending Demand Sheets and the requisition forms should be retained in the Ledger Section until a fresh supply of material is received. In cases of part supply on combined "Requisition and Issue Note" Forms (S. 1313), the Ledger Poster should prepare a new set of forms to cover the balance of material not supplied. When the stock of any item is entirely exhausted, the ledger poster should attach a red slip to the ledger card to indicate this fact. When fresh material is received and this is being posted, the ledger poster should remove the red slip. Whenever he does this, he should see whether there is a pending Demand Sheet (S. 1336) for the item, in which case, the usual procedure of transmission of the requisition to the ward should be followed. The Depot Officer should send to the Controller of Stores once a fortnight a statement of pending requisitions in the form S-1338 to enable him to take prompt steps to remedy defects in recoupment of stores.

Q.254. Describe the procedure of receipt of workshop manufactured item in the depot .
Ans. In case of items manufactured in the Railway Workshops, the maximum and the minimum stock should be fixed taking into consideration the length of time required by the workshops to deal with the requisitions by Stores Depot and manufacturing process. Upon the Depot’s stock on an item dropping to the level of minimum, a requisition in Form S-1437, should be prepared in triplicate, first copy being in ledger section, second copy to Receipt Section and the third copy to Workshop’s Production Department. On receipt of requisition in the Workshop, the Production Engineer will plan for manufacture and issue a Work Order on a particular shop along with release order in prescribed form, for releasing raw materials, endorsing a copy to ledger Section and the Ward. After the receipt of raw materials from Stores depot attached to the Workshop, the Foreman of the Shop will take the manufacture process in hand. Upon completion of the order, the workshop will prepare a “Material Supplied to Stores” in Form S-1531 in five copies and distribute as under:

1 st copy - Office record of ward 2nd & 3rd - For Stores Accounts Officer through Ledger Section 4th copy - For Workshop Accounts Officer through Progress Office. 5 th Copy - Retained by Foreman as office record. The Receipt Section of the Stores Depot having duly checked the items of stores received, should endorse receipt on all the five foils and return the 4th copy to Production Department. The remaining three copies, duly receipted should be sent to the ward along with materials. The ward should allot R.O. number to them and forward them along with the forwarding memo(S-1256) to Ledger Section where the quantity received should be posted. One copy should be forwarded to Stores Accounts Officer who will submit 2nd foil to the Workshop Accounts Officer in support of the Advice of Credit(S-2705) to stop, retaining the third foil as record.

Q.255. What do you understand by Forecast Schedule of Stores prepared by workshop? Describe the procedure of issue of material to workshop?

Ans. Forecast schedules of all stores, tools, assemblies and fittings and component parts required by the workshop for periodical overhauls of rolling stock should be prepared as early as possible in advance of the actual day on which they would be required and these schedules should be furnished to the subward-keeper to enable latter to keep such materials ready for early issue. These schedules should be submitted over the signature of the Works Manager or a gazetted officer working under him. Such forecasts should not be issued piecemeal, one consolidated forecast should be made out for the rolling stock expected to be overhauled in the month. All materials required by the shops shall be drawn, only as and when required, the requisitions being made in carbon duplicate on "issue tickets". The sub-wardkeeper should obtain the signature of the employee receiving the stores on both the foils of the issue ticket in respect of the stores supplied to the latter. The duplicate foil should be returned along with the material to the receiving chargeman. Early every morning, each shop office should arrange the chargeman's copies of the issue tickets of the previous day (which give particulars of the materials received that day) in the order of 'class and price list numbers. The issue tickets bearing the same price list number should than be re-arranged, work order by work order, and a pencil abstract made on the back of the last issue ticket for the day of each item of stores issued, of the total quantity of that item for each work order. Combined 'Requisition and Issue Notes in form S-1523, should then be prepared in carbon quadruplicate, all items of one group supplied during the day being entered in one workshop Issue Note. Separate Workshop issue note should be prepared in respect of materials obtained from the parent ward as distinct from the sub-wards. The sub-ward-keeper (or ward-keeper in the case of an issue from the parent ward) will retain one foil of the workshop issue note as his record and send two copies along with necessary forwarding memo (S-1256) to the Ledger Section of the depot for the posting of the numerical ledgers. They should later on be passed on to the Stores Accounts Officer who after pricing the issue note and posting his priced ledgers will send one foil, with a Daily Summary of Issues (S-2702) to the Workshop Accounts Officer. The Workshop issue note should be checked by the ward keeper with his copies of issue tickets. The sub-ward keeper should retain three copies and return 4th and 5th copies to indenting foreman. The sub-ward-keeper should hand over his record copies of the Workshop-issue notes to the main ward-keeper in order to recoup himself. The foreman will daily submit one copy of the issue notes received by him to the Works Manager or a Senior Subordinate specially empowered by the Chief Mechanical Engineer, who should scrutinize the issue notes, as they indicate the nature and the scale of the daily consumption of materials, sign them in token of having accepted them and forward them to the Workshop Accounts Officer, daily. The other copy will be retained by the foreman as his record. The shop foreman will be responsible for seeing that the workshop issue notes for the day are obtained from the Stores Department and submitted to the Works Manager before noon of the day following.

Q.256. What are the categories of stores returned by workshop? How they are accounted in the depot and show the disposal of copies of returned stores of workshop?

Ans. Stores Returned by Workshops: Returned Stores may consist of.
(1) Surplus Stores being balance of new materials that have not been used on a work
(2) Stores released from works;
(3) Tools and plant no longer required; and
(4) Scrap. All such material should be handed over promptly, on the authority of an Returned Stores (S-1579) to the sub-ward-keeper of the shop, whose duty it shall be to see that the materials are valued by the Stores Department, despatched to the account therein. There is no objection to the sub-ward-keeper avoiding a physical transfer of such of the material as it is possible for him to set off against the issues of the day. He is prohibited from accumulating any stores or scrap that are not required in the shop to which his sub-stores is attached. The Advice Note of Returned Stores should be prepared in five foils. Separate Advice Note should be prepared for each group and for new, secondhand, scrap and condemmed materials and should show the nomenclature and other particulars of the stores, the head or heads of account to be credited as well as the rates and value of the stores. Separate serial numbers should be given for Advice Notes originating from each shop. The foreman returning to stores should retain one copy as his block foil and send the remaining four foils alongwith the materials to sub-ward-keeper. The materials should be checked with the Advice Notes and arranged for inspection and valuation by the Depot Officer or a gazetted officer on his behalf. Immediately after the stores are valued, the sub-ward-keeper should complete the four foils in this respect, take the stores into stock (either his own or that of the parent ward) and initial the advice Notes and send them to the depot office through the parent ward where they should be assigned R. O. numbers as usual. The four foil, after signature by the Depot Officer or a gazetted officer on his behalf, should be disposed of, as follows : The first foil retained as record, The second foil sent to the returning officer, The third and fourth foils sent to the Stores Accounts Office after the numerical ledgers have been posted. The Stores Accounts Office after posting the priced ledger should prepare a summary of credits to the shops, for stores returned to the depot each day. The third foil of the Advice Note alongwith a summary of credits (S. 2705) will be sent by the Stores Accounts Officer to the Workshop Accounts Officer to post the Registers of work orders or Allocation Registers for revenue abstracts. The fourth foils of Advice Notes (S-1539) will be filed in the store Accounts Office. The second foil of the Advice Note should be submitted to the Workshop Accounts Office through the Works Manager, who will scrutinise them before countersignature to see that the credits are afforded at reasonable rates by the Stores Department. This scrutiny may be carried out by a selected subordinate specially empowered to do so by the Chief Mechanical Engineer. The Workshop Accounts Office should arrange the second foils of the Advice Notes (S-1539) by shops and the order of the numbers and dates given by the shops and should pair such foils with the third foils received from the stores accounts Office along with the Advices of credits (S-2705) Any cases of delay in affording credits or discrepancies in quantities etc., should be taken up each fortnight for the Advice Notes of the previous fortnight with the Depot Officer.

Q.257. What is the procedure of receipt and issue of serviceable items from Stores?
Ans. Advice notes for material which though unserviceable, could after reconditioning or repairs be rendered serviceable and would thus be useful for another term of life, should be accepted as "Repairable." Credit should be afforded by the Stores Depot for wholly and partly ferrous articles at 1/3rd and non-ferrous articles at 1/2 of the current book rate for the new articles. Such articles would generally be stock items of locomotive, carriage and wagon parts and fittings. Separate ledger cards under their relevant price list number affixing the correct category code to the price list number of the new article, should be maintained for repairable ones. As soon as it is desired or advantageous to do so, the Stores Depot should get the repairable material made serviceable for issue to consuming department for adding to serviceable stock instead of ordering for new materials. The repaired articles should be taken on books at the book rate for repairable ones plus the actual cost of repairs or average cost of repairs, as convenient. No distinction should be made between new and repaired articles in the matter of storage, and the issue prices of the materials should be the same.

Q.258. Explain briefly the preservation technique of the following.
a) Rubber items
b)Timber and Wooden items
c) Chemical Acids
d) Batteries
e) Electrode
f) Paints
g) Explosives Fog Signal

Ans. a) Rubber Items:
Rubber stores should be stored in very cool room. Stores should be frequently dusted with adequate French chalk. Rubber stores should be kept away from heat such as Electric Motors, Generators and also away from oil, grease and acids.

b) Timber and Wooden Items:
Timber should be protected from micro-organisms as to avoid moist timber which results damage, change of coloour and loss of strength and weight. It should also be protected from getting Wet, either from rain water or leaks or moistures from ground. For protection from insect borer, shall be treated with insecticides prescribed and also painted or varnished and be treated with fungicides.

c) Chemical Acids:
Various types of chemicals should not be mixed up. Stoppers should be kept plastered to prevent from moisture. Containers shall be kept on level floor in sand cushioning in cool and well ventilated sheds.

d) Batteries:
They should be kept in cool and dry racks and terminals protected with a coating of grease. Dry cells should be stored in their original cartons. Old batteries should be issued first. If due to some reasons the acid cells are kept in storage for a long time, the acid solution should be replaced.

e) Electrodes:
The flux coating of the electrodes is likely to get off the metal rod either by absorption or moisture or by mechanical rubbing. They should be stored in original moisture proof cartons. Mechanical rubbing should be prevented during handing.

f) Paints:
Paint drums should be turned upside down or rotted first after 3 months of the storage, and then after every 15 days. Retail issue should be avoided and if made the drum should be soldered back at once. First in first out principle should be observed for issue. Paints should be stored in cool place.

g) Cement:
Cement gunny bags should be stored in leak proof sheds and floor should be pucca or suitable dunnage should be used. A clearance of at least one foot from the walls and roof should be left. Gangway of 3 feet should be left for handling. Chances of outside rain water coming inside should be avoided. Oldest receipt should be issued first.

h) Leather goods:
Leather goods be sorted in cool well ventilated shed. Care should be taken to dust regularly and old stock should be issued first.

Q.259. What do you mean by imprest stores? How is imprest recouped? Show the disposal of foils of imprest schedule.
Ans. Materials whether stock items or non-stock items, held in stock at Running Sheds, Train Examining Stations etc., not for specific works but as a standing advance for the put pose of meeting day to day requirements in connection with the repair and maintenance and operation of rolling stock shall, including consumable stores such as cotton waste, jute, oil, grease, etc., be treated as imprest stores, so long as they are under the control of the authority in charge of the executive unit, and have not been issued to works. The material required to upkeep of rolling-stock, by divisional electricians and that required for house lighting purposes at various stations by electric chargeman should also be treated as imprest stores. Each imprest holder should close his ledgers monthly on the dates fixed for him and check them with the issue and recoupment schedule prepared in form S-1830 from the monthly summary of issues in four copies, out of which three copies should be sent to the Stores depot which is assigned as Supply Depot. The imprest holder shall ordinarily recoup the full quantity necessary to bring up his balance to the fixed imprest. The quantities demanded in recoupment of imprest should be the total issues minus such receipts, i.e., the quantity required to bring up the stock to the sanctioned level. The Depot Officer should enter in the copies of the Recoupment Schedule (S. 1830) the quantities of materials actually issued against the quantity demanded. If the former is different from the latter, the balance of the indent is automatically cancelled. The imprest holder may recoup the balance through the next schedule or through a special recoupment schedule as and when necessary. Two copies of the issue and recoupment schedule as completed by the Stores Depot should be sent along with the material Acknowledgements for the material supply should be obtained on both the copies from the imprest holder. One copy will be held by the depot as receipt, while the other copy will be submitted by the imprest holder to his District or Divisional office for check with the copy received from the Stores Accounts Office. The remaining two copies of the schedule be sent to the Stores Office after the depot, numerical ledgers have been posted from one of the copies. The Stores Accounts Office should insert the rates on the schedules, and after valuing the actual quantities issue by the depot separately for each head of account, should post the relevant priced ledgers, and forward one copy to the Divisional or District Officer concerned in support of the Daily Summary of Issues (S. 2702). The other copy will be retained for record in the Stores Accounts Office.

Q.260. Identify the end use of following materials in railways.
a) Pantograph
b) Suspension bearing
c) Fiber reinforced lubricating pads
d) PVC Flooring
e) Center Pivot Guide
f) Lube Oil Filter
g) FREON Gas 22
h) Carbon Brush

Ans. a) Pantograph: Pantograph is an important component of the EMUs and Electric Locomotives. It has a copper plate on its top which touches the overhead contact wire. Thus, it collects the current from contact wire and transmit it to EMU or electric locomotives.

b) Suspension Bearings: There are journal type of bearings and have white metal lining on its inside surface. These bearings are used in WDM2 locos and also on SDM2 types of electronic locomotives.

c) Fiber Reinforced Lubricating Pads: Fibre re-inforced lubricating pads are used in suspension bearings for lubrication between axle and bearings by wick principle.

d) Distribution Valves: Distribution valves are used in wagons and coaches which are working on air brake system, and in locomotives having twin brake system. This valve actuates the braking action whenever the pressure in brake pipe is destroyed it.

e) Freon Gas 22: This gas is used generally in the cooling system of airconditioners and coolers.

f) PVC Flooring: PVC Flooring consists of Poly Vinyl Chloride sheets or PVC sheets used in the flooring of toilets and lavatories of coaches, and hence formed as PVC flooring.

g) Centre Pivot Guide: Centre pivots of the chasis rest on the Centre pivot guides provided in bogies. These guides of locomotives transmit the load of the engine to the bogies.

h) Lube Oil Filter: The lube oil filter is used in the lubricating oil system of the diesel locomotives and filters the floating particles from the lubricating oil before it is supplied into the lubricating system of the engine.

i) Carbon Brush Tao-659: This carbon brush is lused in the TAO 659 type of traction motors fitted in AC Electric Locomotives. These carbon brushes transmit electricity to the commutator of the traction motors.

Q.261. What is depot transfer? How is SINT Suspense cleared ?
Ans. The transfer of stores from one depot to another is called depot transfer. When the stores issued during a month from a depot are not received in the receiving depot in the same month, such items would not appear in the accounts of the receiving depot. The issuing depot would submit summaries of issues to the receiving depot concerned and that the receiving depot should note down on the summaries the dates of accounted of each of the items as they are posted in the priced ledgers. At the same time a preformed summary of receipts is prepared for the month by the Accounts section .At the end of the month, unaccounted items in the issue summaries should be posted into a register styled "Register of Stores-in-Transit." maintained and their clearance should be watched carefully. When any such item is accouted for later, the credit should be posted in the register in the column for the month of accounted and against the debit entry for the item concerned. Separate registers should be maintained for each depot. The balances lying in the Stores -in Transit Registers should be carefully analysed each month and if any item has been found to be outstanding for more than one month, the matter should be taken up with the Depot Officer concerned. Special lists of items outstanding for more than three months should be sent to the Controller of Stores for taking steps for their clearance.

Q.262. Differentiate between the following.
a) SINT Depot and SINT Purchase
b) Imprest store and Custody store

Ans.. a) Stores-in-Transit 'Depot'. - When the stores issued during a month from a depot are not received in the receiving depot in the same month, such items would not appear in the accounts of the receiving depot. The issuing depot would submit summaries of issues to the receiving depot concerned and that the receiving depot should note down on the summaries the dates of accounted of each of the items as they are posted in the priced ledgers. At the same time a preformed summary of receipts is prepared for the month by the Accounts section .At the end of the month, unaccounted items in the issue summaries should be posted into a register styled "Register of Stores-in-Transit." maintained and their clearance should be watched carefully. When any such item is accounted for later, the credit should be posted in the register in the column for the month of accounted and against the debit entry for the item concerned. Stores-in-Transit 'Purchase'. - The credits to Purchases Account are posted from the Receipt Notes granted by the Stores Depot. In cases where Inspection and Receipt Work is centralized such receipts are granted on behalf of the Stores Department by the Receiving and Inspecting" Officer. The posting of such receipts in the priced ledgers as a contra debit entry will appear however only when the material has been received by the Depots stocking the items and accounted for by it in its priced ledgers. In such cases the Receipt Notes granted by the Receiving and Inspecting Officer towards the close of a month would appear as credits to Purchase Account whereas the complementary debits would not appear in the same month in the priced ledgers as the materials would not have reached the stocking depot within the month.

b) Imprest Stores: Materials whether stock items or non-stock items, held in stock at Running Sheds, Train Examining Stations etc., not for specific works but as a standing advance for the put pose of meeting day to day requirements in connection with the repair and maintenance and operation of rolling stock shall, including consumable stores such as cotton waste, jute, oil, grease, etc., be treated as imprest stores, so long as they are under the control of the authority in charge of the executive unit, and have not been issued to works. The material required to upkeep of rolling-stock, by divisional electricians and that required for house lighting purposes at various stations by electric chargeman should also be treated as imprest stores.

Custody Stores: These stores chiefly consist of items obtained for the Mechanical Department for the construction of rolling stock/sanctioned under the Capital or Revenue Programme. Directly the stores are received and paid for, the cost is at once debited to the works concerned. Instead of the stores lying in the workshops until they are required, the stores Department should keep them in safe custody, proper numerical records being maintained by the department.

Q.263. What do you understand by Departmental stock verification? Under what circumstances the Depot Officer can waive off departmental stock verification?

Ans. Department Stock Verification- As an important back check on the correct receipt and issue of stores by the Wards, it is necessary to have a departmental check to see whether the up-to-date balance of an item in the ledger agrees with the actual physical stock balance. Such departmental verification to be arranged by the depot officer will be in addition to the Stock Verification arranged by the Accounts Department. The departmental verification need only cover selected items such as items of large annual consumption having regular and frequent issues, items of heavy value like non-ferrous items, tool steel, etc., and items of a pilferable nature. A list of such selective items may be drawn up and approved by the Controller of Stores. The verification of physical balances should be done by an official other than the Ward-keeper-in-charge of the item of Stores. The depot officer may postpone the verification if the balances in stock are so heavy that a verification would involve large shifting of stock and the verification could be carried out conveniently at a later date when stocks are at a low level. The Depot Officer may waive verification in the following circumstances.

(a) Where the item has been verified by the Accounts Department within the last three months.
(b) Where the Accounts Verification of the particular class of stores is in progress and, the item is likely to be verified within the next two months.
(c) Where the item has heavy balances the verification of which involves much labour and handling charges.

Q.264. What do you mean by authority for removal of wagons? What is traffic statement of wagons and how it is dealt?
Ans. No wagons may be removed from the Yard unless the Traffic Department is in possession of the Authority for removal of wagons. Traffic Statement of Wagon- The traffic Department will submit weekly in duplicate statements of all wagons booked from or placed in the stores yard showing the wagon number, date of removal from or placing in the yard, consignor and consignee, net weight, and brief description of contents. Both copies will be sent to the Depot Store-keeper. On receipt of this statement, the Yard Foreman should compare it with his wagon registers (S. 1215 or S. 1345) and quote the corresponding issue note number and the weight of material shown thereon against the wagons that have gone out of the yard. Similarly, particulars should be shown for wagons received, the information should be tabulated on a slip to be pasted to the Traffic Statement. He should then put it up to the Depot Store-Keeper who should personally check 10 % of the entries with all connected vouchers. If the Yard Foreman notices any discrepancy, he should at once bring it to the notice of the Depot Officer. The statements should then be pasted in a Skelton file. The Depot Officer should check these statements once a month.

Q.265 Write short note on following.
a. Local Purchase
b. Lead time
c. Buffer Stock
c. Auction Catalogue
d. Direct Sale

Ans.

(a) Local Purchase - The Controller of Stores may make local purchase if items of small value, both stock and non-stock, up to Rs. 1,00,000/- per item- subject to fulfilment to conditions laid down in para 711-S.

i) The normal annual recoupment quantity does not exceed Rs.100000/- in value : or
ii) The stock of the item is precariously low and the same is urgently required, and that the quantity is not deliberately reduced with a view to brining the purchase within the scope of this provision.

(b) Lead Time - Lead Time is the time taken from the date of realization of need of recoupment (i.e. date of recoupment) to the physical receipt of material at the stocking place. Knowledge of Lead Time is very important for effective design of any Recoupment system. Lead Time often is not constant and therefore variations in Lead Time also play very important role.

(c) Buffer Stock- In spite of best calculations, there is a variation in lead-time and consumption pattern. To cater to the fluctuations of lead-time and / or consumption pattern, buffer stocks are required. In any recoupment system, we work out the quantities to be recouped on some forecasts of annual consumption and lead time. However, the actual figures may deviate from the forecast figure and this will lead to a situation of either stock out or overstock at some point of time. To avoid stock outs, we often provide safety stocks which are also known as buffer stock.

(d) Auction Catalogue- Before the auction is conducted; time, date, venue and the items to be included in the auction are put in a booklet for circulation to the prospective bidders. This booklet is called Auction Catalogue containing description, lot no., quantity, location of items to be sold through auction and detailed terms & condition governing the auction sale. The auction catalogue is printed for distribution to all concerned for wide publicity by the Stores Depot which indents to dispose off the scrap through auction. It is also uploaded on the website of the railways.

(e) Direct Sale- Direct sale is sale of railway stores without calling tenders. Direct sale is generally made to other government departments, other zonal railways or to railways contractors for use on the railways works. Some scrap items are disposed off by direct sale to railway employees for their bonafide use at approved prices with concurrence of accounts. The rates are generally based on last auction rates/book rates.

Q.266 (a). What are the various methods of despatch of materials from supplier to Stores Depot ?
(b). What is procedure for preferring claim with carrier when the material is received short at Stores Depot ?
Ans.

(a) Materials are dispatched by the suppliers to the Stores Depot:-
i. Through Railway Parcel or Full wagon loads or containers or lorries.
ii. Through Lorries and Carts from local suppliers.
iii. Through authorised representative of the Railways, in case of urgency.
iv. Through Post Office Parcel/Couriers
v. By Steamer/Ship or Air or through post-parcel in case of Imported Stores

Ans. (b) When the package is cleared from Goods shed/parcel office, Depot should demand for open delivery from the commercial department, if the package is damaged outwardly. After the open delivery has been granted, a joint survey report is made out by the commercial department with representatives of Security and Stores department, in case any shortages are revealed. The delivery of the consignment is taken, duly recording suitable remarks in the delivery book. Claim is preferred o Commercial department, enclosing a copy of joint survey report for the stores damaged/received short. If packages are not damaged outwardly and if there is no difference in weight, we cannot prefer claim on carriers. Even if it is not damaged, if there is difference in weight, it should be recorded in the delivery book and open delivery is demanded.

Q.267 (a). How are claim of shortage/Breakage/damage to be settled?
(b). What are major categories of scrap into which Railway Scrap classified?

Ans. (a)Consignments, against RR/PW Bills if not delivered within a reasonable time by the carriers, are required to be claimed within six months from the date of booking / date of R.R. As the claims on carrier are to be preferred within six months, timely action is required to be taken so that the claims do not become time- barred. Therefore the RRs / PW Bill Registers are periodically reviewed by the Depot Officer. If during this review it is seen that a consignment has not been received within a reasonable time (45 to 90 days) a missing report is sent to all concerned with a copy to CCS. For such cases a manuscript register (Claims Register) with may be maintained. The claims should be preferred in time, i.e., within six months from the date of booking. Normally, claims will be accepted by the commercial department, based on the joint survey report, which is necessary for claiming for shortages, breakages, and damages. In case of its non-settlement within 6 months from the date of claim, it should be discussed between the claimant and the claims departments at officers’ level. In case a settlement is not arrived at even at this level, meetings should be arranged at higher levels, right upto HOD’s level by the claimant. If the settlement of the claim is not reached within one year, even at the HOD level, the case will be put-up to Additional General Manager through Chief Claim’s officer for final decision.

Ans. (b) Workshops, diesel, electrical, wagon depot sheds, engineering and signal workshops, engineering departments with PWIs/BRIs/IOWs, etc. and signal departments are the major centres for generation of Scrap Important categories of scraps are –

i. Industrial scrap
ii. Re-rollable scrap
iii. Melting scrap
iv. Cast Iron scrap
v. Condemned Rolling stock
vi. Bronze scrap
vii. copper scrap
viii. Other Non-ferrous scrap
ix. Scrap machinery
x. Piper and Pipe fittings
xi. Wooden scrap
xii. Waste paper
xiii. Condemned boiler
xiv. Steel cut pieces xv. Condemned furniture
xvi. Empty receptacles.

Q.268 How the cash imprest account for making local purchase is to be maintained and recouped? Ans. i A cash book is maintained by the concerned local purchase supervisor.

ii. All purchasers are made as per established rules and clear receipted cash vouchers are obtained from the suppliers for every purchase on stamped bill. These are allotted serial numbers and are entered in the cash book with serial numbers.

iii. When the cash on hand reaches a stage, which will cover the period that will be taken to recoup cash, recoupment voucher in the prescribed proforma in form No.712 is prepared in 4 copies and sent to the accounts officer, duly signed by the Depot officer, supported with the relevant cash vouchers.

iv. All the cash vouchers also should be attested by the Depot Officer, besides recording the acceptance on the relevant tender/quotation.

v. A. Certificate viz, “Certified that the above purchase, have been made in terms of para 711-S and the stores have been put into stock”. Is to be recorded by Depot Officer on each recoupment voucher.
Care should be taken to see only one group of stores is included n each recoupment voucher.

vi. After acceptance of materials, one copy should be retained as office copy, one sent to Accounts Officer/Stores along with cash vouchers for recoupment of imprest cash, as specified in para(iii) above, one to Controller of Stores and the last to the Stores Accounts (through ledger, in the case of stock items only) for necessary action/record.
vii. Allocation particulars are shown in each voucher.
viii. These vouchers are scrutinized by respective Accounts Officers and they are passed for payment, duly sending a Cheque to the Chief Cashier who arranges payment. Depot Officer collects cash, if he is not having cheque facility. ix. In the case of system of operating with cheque and Bank account, the cheque is sent to the Bank direct, for crediting the account of imprest holder. Thus, the cash is recouped by the Depot Officer.

Q.269. “Knuckle Thrower” is a RDSO approved item used in wagon maintenance in the workshop. The item is urgently required in General Stores Depot in N.C.Railway consisting officers of 1 Dy. CMM, 1 SMM and 2 AMMs. The stock, AAC & dues position as on 10.10.2013 is given below : Stock = 0 AAC = 1500 Nos Covered Dues:- 1500 Nos. PO No.1234 date 01.10.2013 placed by COS office On M/s XYZ DP 31.03.2014 with Basic rate @ 305/-,ED@ 12.36%extra, CST @ 5% extra Freight@Rs.10/- Inclusive. (Firm M/s XYZ has informed that it will dispatch the material after 01.02.2014) The local purchase sheet was initiated by the Léger keeper for 375 nos with value of Rs.137812/- based on last successful purchase rate @ 350/- +CST @ 5% extra. Against PO No.6789 dated 01.01.13 to M/s ABC,DP-31.03.13 (PO completed). The local purchase tender was opened on 15.10.2013 and lowest offer was received from M/s ABC @ Rs.325 + CST @ 5% extra, ED@ 12.36% (Inclusive), Freight Charges @ Rs 15/- each extra, Inspection –consignee, DP within 21 days from date of receipt of PO. The firm M/s ABC is RDSO Part-I Approved firm and has quoted the description as per tendered description without deviation. In view of above situation, explain the following.

(a) State whether the local purchase sheet initiated by ledger keeper was justified or not?
(b) State whether the local purchase PO could be placed on lowest offer firm M/s ABC or Not.
(c) Who would be competent authority to decide this local purchase case and obtain the total purchase order value if PO placed for full tender quantity?
(d) What would be delivery period date on PO, if PO was placed on 17.10.13 and despatched on same date to firm?

Ans. (a) The material is Out of Stock in the depot and urgently required. Although the PO No. 1234 dated 01.10.13 has been placed on firm M/s XYZ with DP30.03.14., M/s XYZ has informed that it will supply the material after 01.02.14. In case of urgently required stock Item, the depot officer has been given powers upto Rs 3 Lakhs per case. As M/s XYZ will despatch the material after 01.02.14, the quantity of 3 months requirements should be procured within depot officer’s power for this period. The AAC of this item is 1500 Nos. Hence, 3 month requirements would be 375 Nos.. Hence, the Local Purchase Sheet placed by the ledgerkeeper for 375 nos for Knuckle Thrower was justified to meet out the urgent requirements of the workshop.

(b) The lowest offer has been received in the tender opened on 15.10.13 from the firm M/s ABC@ Rs.325 + CST@ 5% extra, ED@ 12.36% (Inclusive), Freight Charges @ Rs 15/- each extra, Inspection –consignee, DP within 21 days from date of receipt of PO.

(i)The firm M/s ABC is RDSO Part-I Approved firm and has quoted the description as per tendered description without deviation. Hence, the offer of M/s ABC if found technically suitable.

(ii)The firm M/s ABC is also last successful supplier against PO No. 6789 dated 01.01.13. In view of above (i) and (ii), the offer of M/s ABC can be considered for placement of full quantity based on technically suitability and past performance. The all inclusive rate against PO No. 1234 dated 01.10.13 placed by COS office would be Rs. 359.83 /- each. The all inclusive rate against completed PO No. 6789 dated 01.01.13 would be Rs. 367.50 /- each. The firm M/s ABC has quoted all inclusive rate of Rs. 356.25 /- each which is lower than the all inclusive rate of PO No. 1234 dated 01.10.13. as well as the all inclusive rate of PO No. 6789 dated 01.01.13. Hence, the rates quoted by the firm M/s ABC in this tender is found reasonable. As the offer of M/s ABC is found technically suitable and rate is found reasonable, the local purchase PO can be placed against lowest offer of M/s ABC.

(c) The tendered quantity is 375 nos. The lowest offer has been received in the tender opened on 15.10.13 from the firm M/s ABC@ Rs.325 + CST@ 5% extra, ED@ 12.36% (Inclusive), Freight Charges @ Rs 15/- each extra. All inclusive rate of this offer would be worked out@ Rs 356.25 /- each. Hence, Total Value of PO= Rs 356.25 x 375 = Rs. 133593.75 SMM in the depot other than independent charge has been given power upto Rs 1.50 lakhs per case. Hence, SMM will be the competent authority to decide this local purchase case. The total purchase order value will be Rs. 133593.75 .

(d) The firm M/s ABC has offered DP as 21 days from the date of receipt of PO. There would be 1 week (7 days) transit time to receipt the PO by firm from the date of despatch. Total 28 days delivery time should be given in PO. If the PO has been placed on 17.10.13 and has been despatched on same date, the Delivery Period date on PO will be 13.11.2013.

Q.270 Details of an Public Auction Sale in the E-Auction of a depot relating to ferrous scrap are given below : Date of E-Auction : 20.09.2013 Qty. Sold : 250 MT Rate accepted : Rs.24000/-PMT Calculate the following discussing in detail as per the relevant rules and condition.
(a) The amount of EMD to be deposited on auction date in E-Auction.
(b) The BSV and the last date of payment for Balance Sale Value without interest including number of installment permitted.
(c) What will be last date of payment with interest charge if the firm failed to depots BSV within free time of payment ?
(d) Interest payable for delayed payment if firm deposit BSV on 20.10.2013 (Base rate of SBI as on 20.09.2013 was 9%)
(e) Calculate the Free Delivery Time and max. Extended Delivery Period with Ground Rent within Dy. CMM /Depot power .

Ans. Date of E-Auction : 20.09.2013 Qty.
Sold : 250 MT
Rate accepted : Rs. 24000/-
PMT Total Sale Value = 24000 x 250
= Rs. 60,00,000 /- (Rs 60 Lakhs)

(a) As per the current sale of condition in E-Auction, 10% of the sale value will be deposited as Earnest Money for the sale of lot .

Total Sale Value = Rs 60,00,000 /- Hence, EMD
= 10 % of Rs 60,00,000 /-
= Rs. 6,00,000 /-

(b) Balance Sale Value (BSV) = Total Sale Value – EMD
= 60,00,000 – 6,00,000
= Rs. 54,00,000 /-
Balance Sale Value (BSV) for the lot valued above Rs 1 Lakh should be deposited within 20 days from the date of auction (including Auction Date) and 3 installments for lots valued above Rs 10 Lakhs may be permitted.

In this case, Last Date of Payment for depositing BSV without interest charges (Free Time of Payment) will be 09.10.2013 and max. 3 installments may be permitted for this.

(c) If the firm failed to deposit BSV within free time of payment, the last date of payment can be extended by the Railway Administration at the request of the purchaser subject to levy of Interest Charges for the Belated Period (not beyond 40 days) including the date of auction.

Hence, the last date of payment for BSV with interest charges would be 29.10.2013

(d) Base Rate of SBI as on 20.09.13 was 9 %. Interest Rate in case of delayed payment will be charged @ 7% above the Base rate of State Bank of India applicable as on date of auction.

Free Time of Payment would be upto 09.10.13

The last date of payment for BSV with interest charges would be 29.10.2013. The firm has deposited the BSV of Rs. 54,00,000 on 20.10.13.

The interest charges will be calculated on Rs. 54,00,000/- with interest rate@ 16% for belated 11 days.

Hence, Interest Charges payable = 54,00,000 x (16 /100) x (11 / 365)
= Rs. 26038.3
= Rs 26038 /- (round off)

(e) The Free Delivery Period (FDP) allowed for the sold lots is 50 days including auction date. Hence, FDP in this case would be 08.11.2013. Dy. CMM/ Depot can extend the Delivery Period with Ground Rent for delivery of Scrap upto 65 days from the auction date.

Hence, Max. Extended Delivery Period Date with Ground Rent within Dy. CMM/Depot power would be 23.11.2013.

Q.271. The item ‘X’ is safety and category- C item and used in POH of wagons. The detail as given bellow.

CP : 01.04.2014 to 31.03.2015

AAC for 2013-14 :1800 Numbers (based on POH outturn target for 2013-14).

POH outturn target for wagons in year 2013-14 = 75

wagon per month POH outturn planned for wagons from year 2014-15(from 01.04.2014) = 100 wagon per month .

Stock in hand on 01.10.2013 = 200 Nos Covered dues = 300 Nos.

Calculate the following ?

(a) The AAC Qty. requirement for year 2014-15
(b) The Net IP requirements
(c) The CP requirements
(d) Net requirement upto 31.03.2015

Ans. (a) AAC for 2013-14 =1800 Numbers (based on POH outturn target for Year 2013- 14).

POH outturn target for wagons in year 2013-14 = 75

wagon per month Hence, POH outturn target for complete year 13-14 = 75x12 = 900 wagons.

Hence, Qty. of items used in 1 wagon = POH outturn per year / AAC = 1800 / 900 = 2 nos.

POH outturn planned for wagons from year 2014-15(from 01.04.2014) = 100 wagon per month .

Hence, POH outturn planned for complete year 2014-15= 100x12 = 1200 wagons.

Hence, Qty required for 1200 wagons in 2014-15 =1200 x 2= 2400 Nos.

Hence, AAC quantity requirement for year 2014-15 will be 2400 Nos.

(b) Contract Period : 01.04.14 to 31.03.15 Stock in hand on 01.10.2013 = 200 Nos Covered dues
= 300 Nos. Interim Period will be from 01.10.13 to 31.03.14 for 6 months.

AAC for period 01.04.13 to 31.03.14 = 1800 nos. MUF for 2013-14 = 1800/12 =150 nos This is a Safety and Cat- C item, so Buffer Stock of 3 months is being taken. Net IP requirements upto 31.03.14 = 6 month requirement + Buffer Stock – (Stock +Dues) = (150 x 6) + (150 x 3) – (200 + 300) =850 Nos. (c) The POH outturn Ennhanced for wagons from year 2014-15(from 01.04.2014) = 100 wagon per month = 1200 Wagons per year Hence, AAC for year 2014-15 = 1200 wagon per year x 2 nos per wagon = 2400 Nos. Hence CP requirements for 2014-15 = 2400 Nos. (d) Net Requirements upto 31.03.15 = Net IP requirements + CP requirements = 850 + 2400 = 3250 Nos

Q.272. (a) What are the necessary requirements for registration of bidder for participating in E-auction with IREPS application?
(b) How can a bidder register itself ONLINE with IREPS application for participating in E-Auction?

Ans. (a) Registration with IREPS site (www.ireps.gov.in) is must for any bidder to participate in E-Auction for Indian Railways. For registration, bidder needs to have valid Class III Digital Signature Certificate with Bidder’s Firm Name issued by licensed Certifying Authorities, an affidavit duly notarized on stamp paper of requisite value and valid Email ID and one time Registration fee Rs. 10,000 . They also need to have a computer with Internet browser (IE 6 or IE 7) and Internet connectivity. Without valid Digital Signature Certificate and User ID, vendor cannot participate in E-Auction. The bidder can either go for Online Registration or Manual registration by Railway user in Depot.

Ans. (b) Bidder must open "New Bidder " link ( at top left page of www.ireps.gov.in) from Auction Home page and fill login registration form. After submission of filled up form, bidder will be directed to Payment Interface for Payment of Refundable registration fees of Rs. 10,000 through Payment Gateway/ Net Banking facility of various banks. After submission of registration fee, bidder will get message for producing their Affidavit and system generated ID and class III digital certificate to nearest depot where the Authorized depot user will upload their affidavit in their account and will retain the original copy of affidavit. After Sign and Submit by Bidder he will be registered successfully .Bidder will receive in his mailbox Login Password to log into the application and the Bidding Password for participating and bidding in auctions. User ID will be same as his email ID given in the form at the time of registration.

Q.273 (a) How can Depot User create Auction Catalogue in E-Auction ?
(b) What is the procedure for Editing, deleting, rearranging, withdrawn lots in E-Auction?

Ans. (a) Auction Catalogue can be created by clicking the link available on left navigation of user home page ‘Create Auction catalogue’. There are 3 steps for making a catalogue.

1. Header Creation and Blocking of Bidders.

2. Lot Finalization

3. Sequencing and Publishing.

In Header Creation, the Auction Type whether Close Ended or Open Ended is defined and according to which the Max Auto Extension is given. The Auction start Date Time is automatically taken from the Auction Schedule. Depot Admin has also been given facility to block bidders. In Lot Finalization step, depot user can add lots to auction catalogue. Lots newly created after publishing of last catalogue, lots rejected/withdrawn from last catalogue are automatically included in next catalogue. He can add more Lots by clicking the button “Show Lots Not Included in Current Catalogue”. He can also remove lots by selecting the lots and remove them. In the Sequencing, the Depot user can arrange the lots and categories in catalogue in the desired order for auctioning. After catalogue is finally prepared, it can be published by using digital Signature Certificate. It is important to note that sequence of category and Lots cannot be changed after publishing a catalogue.

Ans. (b). During catalogue creation process, authorized Railway users can edit any details except Lot Number of any lot by clicking icon Edit Lot. Lot can also be edited by searching the lot from search facility. Lot can be deleted by searching the lot from search facility. Lot once deleted will not be available to user for inclusion in future catalogues. Lots which have already been sold cannot be edited/ deleted. Lots where Auction for the catalogue has started cannot be edited. During catalogue creation process, authorized Railway users can remove desired lots from catalogues. Such removed lots will be available for inclusion in the subject catalogue before start of Auction or for inclusion in any future catalogue.

Q.274 (a) Who can Enter/Edit/View RP for the lots in E-Auction & how?
(b) How can Railway User register the Bidder manually for E-auction?

Ans. (a). RP can be filled only by Depot Administrator (Dy. CMM) who is also auction conducting officer. He has to apply the Encryption certificate to encrypt the RP and Digitally Sign the same. RP can be entered after publishing the auction catalogue but before the starting time of Auction for the lot/catalogue. For entering/editing RP, Depot administrator needs to open My Catalogue inbox, click the icon “View Auction Register” against the desired catalogue, and click on the button “Enter Reserve Price” at the bottom of Auction Register. He is also authorized to edit RP in the same way but before scheduled starting time of ‘auction for the lot/catalogue’. RP can be viewed by clicking the icon View RP Register under My Catalogue inbox. Only auction conducting officer who should be nominated as depot Administrator is allowed to view/enter/edit RP after applying encryption certificate.

Ans. (b) The Bidder have to approach to his nearest depot whose addresses/Contacts are given on www.ireps.gov.in , with One Time Entry Fee Rs. 10,000, an affidavit duly notarized on stamp paper of requisite value ,request letter on Firm’s letter pad and valid class III digital signature certificate. Depot authorized user will register the bidder after verifying necessary details. On successful registration, the bidder will receive in his mailbox Login Password to log into the application and the Bidding Password for participating and bidding in auctions. User ID will be same as his email ID given in the form at the time of registration.

Q. 275. Describe conditions applicable for sale by E-Auction in N.C. Railway for following points :- (a) Sale of Hazardous Waste
(b) Sale of E-Waste
(c) Entry Fee
(d) Bid Acceptance
Ans. (a) Sale of Hazardous WasteScrap Lots consisting hazardous waste as defined by Central Pollution Control Board under Hazardous Waste Management and Handling rules 1986 and amended from time to time will be sold only to the firm having valid authorization to process these items as recyclers/reprocessors under Hazardous waste (Management and handling) rules 1986, as amended from time to time, issued by ministry of environment & forest. Prospective bidders of such lots of hazardous wastes should be in possession of registration, valid on the date of e-Auction and on the date of delivery, as recycler/preprocessor issued by the Ministry of Environment and Forest or by Central Pollution Control Board. The successful bidder, whose bid is accepted by Railway administration, shall be required to produce original valid document of such a registration at the time of taking delivery of material. In case of failure, Railway administration may cancel the sale and reserves the right to forfeit the earnest money. Certificate is required from the firm regarding the total waste purchased and processed for the current financial year (till the time of auction) to assess the validity. Registration certificate cumpass book for recycling of hazardous waste should be brought at the time of delivery to make necessary verification & entry. The above condition may vary as per the latest directives of Ministry of Environment & Forest and CPCB at the time of e-auction delivery.

(b) Sale of E-Waste – QuestionPaper.Org Scrap Lots consisting E-waste (like Computers, Laptops, printers, TV sets, Refrigerators, ACs etc.) as defined by State Pollution Control Board or Pollution Control Committee of Union Territories as the case may be, of e-waste (Management and Handling) Rules 2011 covered under schedule I, and amended from time to time will be sold only to the firms having valid authorization to process these items as recyclers/re-processors under e-waste (Management and Handling) Rules 2011, as amended from time to time issued by ministry of environment & forest. The firm should be authorized and registered with State Pollution Control Board or Pollution Control Committee of Union Territories and should possess valid registration certificate. This certificate in original has to be provided to auction conducting officer on his requirement as well as the time of delivery. The purchaser will also be required to give undertaking at the time of purchase to refine/recycle the waste within the period of the validity of his certificate of registration and purchase of the items will not exceed the total limit of his registration certificate. If purchaser fails to comply any of the above conditions or violates any of the rules prescribed by Ministry of Environment and Forest, the sale will be cancelled and the amount deposited by the purchaser will be forfeited.

(c) Entry fee: The purchaser has to get registered on the side www.ireps.gov.in for centralized registration for e-auction. The purchaser is required to submit one time registration fee Rs. 10,000/- as entry fee in central account either through payment gateway or manual payment. The centralized registration shall permit the bidder to participate in all e-auction, over entire Indian Railways, available on the site www.ireps.gov.in. The registration fee can be refunded to the bidders on request if they desire not to participate in future e-auctions. However, such bidders, on request, can participate in e-auction by re-registering afresh by depositing the requisite registration fee again.

(d) Bid Acceptance: For Close ended auctions i.e. where auction closing date/time is predefined: After the closing time no bid shall be accepted by the system and all bids received will be frozen in order. The closing time will be auto extended if any bidder submits the bid in last pre determined interval time, so that other bidders get time to bid accordingly. The system will accept/reject the highest as per reserve price fed into the system prior to the start of e-auction.

Q.276. Discuss Merits And Demerits off two systems of provisioning, viz. the Annual Estimate System and Economic Order Quantity system for a large organisation, stocking a wide variety of item.
Ans. Annual Estimate systemMerits:
(i) Recoupment is made as per given time-table. Therefore, the possibility of lapse on the part of the staff is minimised.
(ii) It helps combining of demands of similar items into one purchase so log as the source of supply of this item is common. This reduces not only the ordering cost but gives a better bargaining power due to bulking of quantities.
(iii) The demands from more than one depot for the same item can be combined in the purchase office at the same time, as pr the timetable laid down and make the purchase for all depots together. (iv) Under this system, number of reviews to be made are the bearest minimum.
(v) Bulk order can be placed on the supplier to obtain a better rate for the item.
(vi) Inventory carrying cost can be kept low if order is placed with required no. of phased deliveries. (vii) Due to adequate buffer, chances of stockout may also be minimized. Demerits :

(i) In this system, stocks get depleted between two reviews, either due to failure of suppliers or due to violent fluctuation in consumption. This will cause stock out. The depot is forced to go in for an interim recoupment, leading to emergency procurement at higher cost. It results in stock out cost.
(ii). In this system, not only estimates are made in advance to the period of requirements but also contracts are finalised well ahead. In case, there is a drop in consumption or items become obsolete, dues cannot be cancelled due to contractual obligation. It will result in the increase of quantity of an item in stock already rendered surplus.
(iii) this system is not most suitable for the purpose of inventory control because we cannot take advantage of optimum economical order quantities and therefore, is not suitable for items with high consumption value. However, this disadvantage can be overcome by taking delivery into various installments. EOQ System/(Economic order quantity)-

Merits : i. Recoupments are made immediately as stock reaches the minimum. This will avoid stock out. ii. This will avoid accumulation of excess stock if there is reduction in consumption or becomes obsolete.

De-merits – i. There will be frequent recoupments in a year. It will result in more order costs.
ii. The rate obtained for the item will be more, as the quantity ordered is less.

Q.277.Explain the Account Inspection Report Part I & II.

Ans. One of the functions of the Accounts Office is to inspect on the spot the source documents maintained in the Executive Offices which are not sent to the Accounts Office for check. The internal check is exercised in an Accounts Office on the bills and returns etc. prepared in the prescribed forms by the Executive offices. Many of the original records on which these bills and returns etc. are based are retained in the office where these originate. The Accounts Officer, or the staff deputed to inspect an office, should see that the bills, returns, vouchers etc, submitted to the Accounts office have been correctly prepared and accord with facts and that all such initial records have been maintained efficiently. In addition, the object of local inspection is to see that the financial rules and orders are being carried out, and that the executive authorities responsible for keeping the accounts exercise due care over the accuracy of the accounts. All irregularities and objections noticed during the course of inspection should be noted down methodically. At the conclusion of the inspection, the Account Inspection Reports should be compiled embodying all irregularities and objections for which no satisfactory explanations were forthcoming. The Report should be as brief as possible and the points covered in the report should be arranged in a proper manner and serially numbered. The reports should be prepared in two parts i.e., Part I and Part II. The first part should contain points of major importance only, all other items being relegated to Part II. Account Inspection Report Part-I: This should contain points of major importance only which may be held to include objections involving recurring over payments due to wrong fixation of pay, grant of leave and T.A. under a wrong set of rules etc. and any other irregularities which are required to be regularised under competent sanction. The remarks for individual paras should be called for from the Head of the Office Inspected. Part I of the Inspection Report should be prepared in Triplicate. One copy will be retained in the Accounts Office as Office copy and Two copies sent to the immediate superior of the Officer whose office was inspected, with a request that one copy may be forwarded to the Head of the Office Inspected for remarks. In the case of Divisional Office, all Part I Inspection Reports should be sent to the divisional officers personally. The officer whose office was inspected should return one copy with as complete replies as possible through his immediate superior to the Inspecting Officer. Before forwarding the replies, the immediate superior should satisfy that they are correct and complete and where necessary should have them amended or amplified to avoid further correspondence. The remarks so received should be scrutinised in the Accounts Office and further action that may be necessary taken under the orders of the Accounts Officer. If any cases of serious irregularities come to light in the disposal of Part I of the Inspection Reports the details thereof should be entered in the "Register of Serious Irregularities" and the progress of their disposal carefully watched. Part I of the Inspection Reports should ordinarily be seen by the Dy.CAO//Sr. DFM. Part I of the reports on the major construction and other important offices or those containing very important points should be put up to FA & CAO through the Dy.CAO concerned. Account Inspection Report Part II: All other items, which have not figured in Part I should be included in Part II. The disposal of paras in Part II may be left to the Head of Office inspected. Part II of the Inspection Report should be made out in duplicate. One copy should be retained in the Accounts Office as office copy and the other sent direct to the Officer in charge of the office inspected with the request that irregularities pointed out therein may be rectified and the recurrence of such irregularities guarded against. The officer in charge of the office inspected should acknowledge receipt of the report, and give suitable remarks as to the action taken by him against each item in the report before filing it in his office, The Accounts Officer should satisfy himself during his next inspection that suitable action has actually been taken on the points raised therein. Part II Inspection Report need not however be put up to Dy.CAO .

Q.278. Explain the Merits & De-merits of E-auction over Manual Public Auction?
Ans. Merits:

(1) Purchasers/Bidders can do bidding ONLINE in E-auction at home/office. It facilitates the Depot Users and bidders by removing the restriction on their physical appearance at the place where Auction is taking place like in public auction, thus saving time and money for bidder and seller .

(2) Auction conducting officer in the depot can perform the auction operation within its chamber instead of presenting in Auction Hall. He/She can perform other office works simultaneously with E-auction.

(3) Bidders have to deposit only one time Registration Fee in E-Auction and they can participate in E-auction of Depots of various railways. In Manual Public Auction, they have to submit the refundable Entry Fee for each and every auction and for each depot of railways in the form of demand drafts.

(4) The depot staff including Accounts involved in auction can perform its regular office work during E-auction days. E-Auction also eliminates the requirements of Cash Office’s Staff for depositing EMD and RPF staff for security in Auction Hall.

(5) The Auction Catalogue is created ONLINE on the IREPS website in E-Auction. This results in Paper saving towards environment benefits.

(6) EMD is automatically deducted from the bidder’s account in E-Auction. There is not need to carry physically cash by the purchaser which eliminates the possibility of theft/loot of cash like in manual public auction.

(7) In manual public auction, the EMD is deposited by successful purchase after lot is sold to firm, some times the purchaser refuses to deposit the EMD. In this case, sold lot is withdrawn & only refundable entry fee Rs.10000/- is only forfeited & lot is cancelled. In E-Auction, the EMD is automatically deducted for the highest successful bidder and no need to cancel the lot.

(8) The Bidders can participation in more than one depots at same time in EAuction.

Demerits: (1) Purchasers are normally less educated. They have to acquire proper knowledge of Computer working, internet, Net Banking etc.

(2) E-Auction is mainly dependent on Internet. Due to disconnectivity or less speed of Internet, sometimes a Bidder can miss the opportunity to bid in the lot.

(3) In Manual Auction, the unsold lots can be re-opened for bidding more than 1 round on the same day. But in case of E-Auction, the lots once closed can’t be re-opened again for bidding.

Q.279. Distinguish between the followings :
a. Book Average Rate and Reserve Price
b. IP and CP
c. EMD and BSV in E-Auction
d. Purchase Suspense and Sale Suspense.

Ans. (a) Book Average Rate and Reserve Price: The book average rate is the rate arrived at by dividing the value balance shown in the priced ledgers by the quantity balance. Whereas The reserve price is the price fixed by the Controller of Stores or the depot Officer for such item of scrap to be sold based on the bids obtained at past QuestionPaper.Org auctions and any other information available in order that the item may be withdrawn from the sale, if the bids are found unsatisfactory.

(b) IP and CP : In Annual Estimate System, the date on which the recoupment sheet for the item is to be prepared is fixed as per pre-decided time table to be followed for recoupment of the items. The period for which items are recouped is fixed and is called "Contract Period (CP)". This contract period is generally 12 months. The interval between the dates fixed for preparing the recoupment and the beginning of the contract period is known as the Interim Period (IP). This period is equivalent to lead time for that particular item.

(c) EMD and BSV in E-Auction :

(i) EMD (Earnest Money Deposit) – Highest Bidder on the fall of Hammer or close of bid and its acceptance by Auction Conducting officer shall be required to deposit a token amount of total Sale Value known as Earnest Money Deposit. The EMD amount for sold lot in E-Auction will be 10% of Sale Value (accepted Bid Value) .

(ii) BSV (Balance Sale Value)- After depositing EMD against the sold lot, the purchaser has to submit remaining amount of the total Sale Value as per prescribed time schedule. This remaining amount is known as the Balance Sale Value. Balance Sale Value should be deposited as per time schedule given below:-

(i) Within 10 days from the auction date for lot valued upto Rs 1 Lakh.
(ii) Within 20 days from the auction date for lot valued above Rs 1 Lakhs. The date of auction is included in the time period. In case of failure to deposit the balance sale value within above time schedule, the Railway Administration at the request of purchaser may grant extension to deposit the balance sale value subject to levy interest charges for the belated period (not beyond 40 days) including the date of auction. The EMD shall Stand forfeited if the BSV is not deposited by the purchase within the said period of 40 days or 20 days as the case may be.

(d) Purchase Suspense and Sale Suspense:- Purchase suspense head is operated in the Stores Accounts Office in order to maintain the co-ordination between the balances of stores in the Stores Depot and the Stores balances in general books of the Railway. For indigenous purchases, this head is credited with the value of stores purchased (Received in depot) accepted and Receipt Note Issued) and debited when actual payment, in respect of stores purchase, is made. In case of advance payment i.e. payment made against inspection note and proof of dispatch (R.R.). This head is first debited and then credited as soon material is received in the depot. Whereas Sale suspense is a suspense account created for the purpose of acountal of the material (in value terms) in case of sale of material. Whenever, the payment is made by the scrap purchaser, this suspense is credited and the corresponding debit is done when the material is actually lifted and sale issue note is issued. In case of inter- railway sales, this account is first debited as the payment is realized after issue of the material.

Q.280 (a). Name the various points of Check List that should be checked before processing a Non-Stock Demand for Local Purchase?

(b). What is Advice Note ? How is the disposal of foils of Advice Note done?

Ans. (a) The various points of Check List that should be checked before processing a NonStock Demand for Local Purchase are given below:
1. Whether detailed description given in requisition complete alongwith drawing, Specification etc.
2. Whether non-stock certificate given
3. Whether basis of estimated cost given ( copy of basis attached if required)
4. Whether funds availability certified in the requisition
5. Whether justification of purchase the item is given
6. Whether last purchase order reference given or justification for Ist time purchase given
7. Whether indent signed and approved by Competent Authority

a) Upto Rs. 10000/- only. Signing Authority – J.S. Officer Approving authority – JS Officer

b) Exceeding Rs.10000/- but not exceeding Rs.50000/- only inclusive. QuestionPaper.Org Signing Authority – S.S. Officer Approving authority- S.S. Officer

c) Exceeding Rs.50000/- but not exceeding Rs.2 Lakhs. Signing Authority – JAG/SG Officer Approving Authority – JAG/SG Officer

d) Exceeding Rs.2 Lakhs but not exceeding Rs.10 Lakhs. Signing Authority – Counter Signed by CWM/ADRM/SAG Officer of the user department. Approving Authority- Counter Signed by CWM/ADRM/SAG Officer of the user department.

8. Whether Essential Certificate by C.A. given:-

a) For Safety Items:- for requisition valuing upto 2 Lakhs by JAG/SG level and for requisition exceeding Rs. 2 Lakhs by SAG level i.e. CWM/ADRM/ DRM .

b) For items other than Safety Items:- for requisition valuing upto 1 Lakh by JAG/SG level and for requisitions exceeding Rs. 1 Lakh by SAG level i.e. CWM/ADRM/ DRM .

9. Whether Proprietary Articles Certificate by CA is given :- Competent authority to sign Preparatory Articles Certificate is as under :-
a) Indenting Officer upto Rs.25000/
b) JAG/SG Officer of consigning department up to Rs.75000/-
c) HOD/SAG Officer of consigning department upto Rs.3 Lakhs.
d) PHOD/CHOD of consigning department above Rs.3 Lakhs. Whether Urgency Certificate is given

10. Whether requisition is vetted by Associated Finance, if applicable. Vetting of NS demand required
(i) for safety items- Above Rs. 2 Lakhs
(ii) For items other than safety items- Above Rs. 1 Lakh

11. Whether NS demand is complete in all respect.

Ans. (b) Advice Note :- All stores which have been previously issued for the services of the railway and are no longer required on a work should, in the absence of special instructions to the contrary, be returned to the stores depots. All the returned stores are to be returned by various subordinates on form S-1539 which is called Advice Note for returned stores. This is also called "DS-8" on many Railways. First of all, returning subordinate will obtain approval of his controlling officer for returning the stores and then he will prepare Advice Note(D.S.-8) in 6 copies. He will get these advice notes signed by his controlling officer. If he is sending a material declaring it as unserviceable, he should obtain approval of competent authority. The material to be returned will either be booked by Rail to the nominated stores depot or through Trucks. Disposal of the Foils of Advice

Notes:- (i) As mentioned above the Advice Note for Returned Stores is to be prepared in 6 copies.

The returning subordinate will retain one copy (1st copy) with him for his record.
Out of remaining 5, he will send 3 copies(2nd, 3rd & 4th) to the nominated Stores Depot either along with the material or along with R.R./P.W.Bill, if the material has been dispatched by Rail.
At the same time he will send one copy (5th) to the Stores Account office of the depot and last copy (6th) to his controlling officer.
The purpose of these 5th & 6th copies is to give advance information to Stores Accounts Officer and his controlling officer so that they can monitor for getting timely and proper credits for their returned materials. This procedure is explained in subparagraph (ii) below.

(ii)The controlling officers are required to maintain a Departmental Register of Advice Notes(S1605) for keeping watch on the accountal of returned stores. As soon as 6th copy of the Advice Note is received from the subordinate, it is entered in this Register. If some information is found incomplete, further details are added in the Advice Note and then this is forwarded to the Stores Depot for getting credit particulars. Similarly Stores Account Office is also required to maintain an Accounts Register of Advice Notes (S-1622) to see that all the materials returned by various field subordinates are taken into books promptly and properly.

(iii) As mentioned in (i) above 3 copies of Advice Note are sent by the returning subordinate to the Stores Depot along with the dispatch details. On receipt of these copies necessary particulars are entered in a register known as Depot Register of Advice Notes (S-1609). This register is also to keep watch on timely receipt of materials and their accountal. If a material is not received within a reasonable time, claim is lodged on the carrier. On receipt of the wagon/material it is weighed and details are entered in a Wagon Weighment Register. Some of the stores depots also maintain field books, in which they enter the details of all the materials, quantity wise, received from a particular wagon. After receipt of the material, they are segregated classification wise and are taken into books by granting a Receipt Order(R.O.) Number.

(iv) After granting R.O. Number on all the 4 copies (3 received direct from the returning subordinate and one through his controlling officer) concerned ward of Stores Depot will retain one copy (2nd foil) for his record and will forward 2 copies(3rd & 4 th foil) to his Stores Account Officer and one copy (6th foil) back to controlling officer of the returning subordinate.

Stores Accounts Officer, on receipt of 3rd and 4th foil will pair them with 5th foil, received by him direct from the returning subordinate, and will enter receipt particular as furnished by Stores Depot in 5th copy also. Stores Accounts Office will get the priced ledger posted by sending 4th foil to Electronic Data Processing Center, as per laid down time table. After posting of priced ledger ,4th foil will be brought back and filed in Store Accounts Office.
When the priced ledgers are completely posted for the month, computer will generate Credit summary along with many other Reports. This credit summary is also collected by the staff of Stores Accounts Office and is forwarded to the controlling officer of the returning subordinate along with the 3rd foil of the Advice Note, for accepting the credits. At this time 5th foil of the Advice Note will also be returned to the controlling officer.

(v) Controlling officer on receipt of 6th foil of Advice Note will examine whether the Stores Depot has granted Credit for correct quantity under correct classification & nomenclature. In case of any discrepancy, he should take up the matter with the Depot Officer and the returning subordinate if the reasons given on the Advice Note are not satisfactory. The controlling officer will file 6th foil in his office and 3rd foil will be filed in the office of his associated account office. The 5th foil will be forwarded to Returning Subordinate for his record.

Q.281.(a). Explain following based on SAG committee recommendations?
(i) Selling of Low Value Scrap
(ii)Time for Delivery and depositing Payment
(b). Who are associated with the delivery of scrap materials in the depot? Explain the delivery of scrap materials in the depot after DO is prepared?

Ans. (a) (i) Selling of lo value Scrap:- Divisions should finalise the list of low value items with the concurrence of DFM/Sr.DFM and with the approval of DRM, keeping in view the codal provision in para 2314 of Stores code. These items should be disposed of on as “as is where is basis”. These scrap lots valued up to Rs.100000 can be disposed of by Sr.DMM/DMM by calling for bids tenders from the list of likely buyers. Similarly, a list of such low value scraps should be finalized by each CWM in the Workshop and such low value scrap items should be disposed by the respective CWMs from the workshop itself. The workshop may have a separate space for storing these low/nil value items within the workshop premises.

(ii) Time for Delivery and depositing Payment:- As per SAG recommendations, the system may be modified as under :-

Free delivery time shall be maximum 50 days from the date of auction. This time can be extended upto 65 days by COS/CMM at the time of auction depending of complexity of lot or even after auction in case Railway Administration is responsible for delay. However, beyond 65 days, delivery can be given only after imposing ground rent. In exceptional circumstances when delay is purely duet to fault of Railway Administration, delivery time can be extended without ground rent with personal approval of GM/AGM.
If the purchaser fails to deposit balance sale value for a sold lot within the allowed period of 20 days from the date of auction and request for an extension of this period, the Railway Administration, may at its discretion, on the merits of the case, allow further time not beyond 40 days from the date of auction, subject to the levy of interest charges. However, the Earnest Money shall stand forfeited, if the balance sale value is not deposited by the purchaser within the said period of 40 or 20 days as the case may be.

Ans.
(b) The nominated DMS/CDMS, purchaser, nominated representative from Accounts (normally a Stock Verifier) and nominated representative from RPF are associated with the delivery of scrap materials in the depot. When the balance sale value has been paid by the purchaser in full and he has fulfilled all the other conditions of sale, a Delivery order is issued to him by the Depot Officer. Delivery order is an authority for the purchaser to take delivery from the Scrap Yard. The purchaser approaches DMS incharge of Scrap Yard/ with delivery order for taking delivery. Delivery is given by the nominated which is witnessed by

A representative from Accounts (normally a Stock Verifier) and
A representative from RPF At the time of delivery it is to be ensured that ;

(a) The delivery is given from the lot actually purchased by the purchaser ;
(b) Delivery is given from one side and no picking and choosing is allowed.
(c) Fresh arisings of similar material are neither dumped on the sold lot nor delivery of these is given at the time of delivery.
(d) The purchaser does not have access to other lots. (e) Proper record of weighment is maintained. (f) Normally delivery of ferrous items is given by weighment on a Electronic weigh-bridge but delivery of a non-ferrous items is given by weighing on Electronic Weighing Scale.

After the delivery is completed a Sale Issue Note is prepared, and the details of progress of delivery are also maintained on the back of the Sale Issue Note. When the Sale Issue note is signed by the gazetted officer, a Gate Pass is issued and it is the duty of the Delivery Witnessing Officials to escort the lorry up to the gate so that there is no possibility of mixing any other material within the depot.

Q.282.Write short note on following :
a. Tender sale
b. Auction sale
c. Stock Verification Sheet
d. Bid Sheet.

Ans. (a) Tender Sale : The means of disposal of scrap by inviting tenders offering to sell is called tender sale. The tender sale is governed by terms & conditions of sale by tender, which are published in the tender documents. The prospective bidders are required to submit their bid along with the required Earnest Money Deposit, failing which the offers are summarily rejected. The tenders are opened at the date & time given in the tender documents. The offers received are evaluated and the offer of the highest bidder which meets the tender conditions is accepted by the competent authority. The sale contract is issued after receipt of security deposit from the successful bidder.

(b) Auction Sale : The means of disposal of scrap through public auction is called auction sale. The terms & conditions governing sale of scrap through auction are drawn up before sale and published in the auction catalogue. The auction sale notice containing date & venue of the auction is advertised in leading newspapers giving reasonable time for intending bidders to collect auction catalogues and visit scrap yards to examine the relevant scrap lots. On the date & venue of the auction advertised, the auction conduction officer conducts the auction sale as per the governing terms & conditions. Bids are obtained on the spot and the highest bid above reserve price is accepted. Bidder whose bid has been accepted is required to submit Earnest Money immediately after acceptance of his bid. Bid sheet is issued thereafter.

(c) Stock Verification Sheet :- The object of verification by the Accounts Department of Stores in the custody of the Depot and other Departmental Officers and Subordinate is to ensure that the materials accord with the description and specification shown in the balances appearing in the books and that excess or deficiencies, if any, noticed on such verification are properly investigated and accounted for. After Stock Verification is over, the Stock Verifier should prepare the sheets in triplicate (by carbon process) is called Stock Verification Sheet in Form (S. 1260) for all items of stores, the verification of which has been completed that day. The stock sheets should be prepared from the date in the field book. The stock sheet so prepared will contain only the ground balance. A Stock Verification Report has to be prepared at the time of posting the priced ledger, in form S. 1260, showing the book balance, the ground balance as per the stock sheet and the excess shortage, if any. After the actual stock figures of an item of stores have been ascertained and accepted by the Ward Keeper, the physical stock verified by the Stock Verifier should be shown in his field book, as well as in the stock sheet prepared by him. The differences, if any, between the physical stock and the priced ledger will be brought to account by Stores Accounts Officer at the time of posting the priced ledger. He should prepare stock sheet as follows :—

(i) If there is no difference, the remark 'Stock verified correct' will be printed on the stock sheet prepared.
(ii) If the difference be an excess, i.e. the actual stock figures are greater than book balance, the difference will be struck and posted as receipt in the ledgers duly giving the date of posting. The difference arrived at should be shown, together with the physical balance and the actual book balance in the stock verification sheets.
(iii) The same procedure will be adopted while recording shortages, except that figures will be taken as minus receipt and shown as 'Shortage in Stock' in the printed stock sheets. Each stock sheet should be signed by the Stock Verifier and by the subordinate incharge of the stores verified.

(d) Bid Sheet :- At the time of auction when the lot has been sold to the purchaser, a sheet is prepared as authority of sale is called Bid Sheet. A Bid Sheet contains

Details of lot No.
Brief description of the lot,
Quantity sold,
The rate at which sold,
The earnest money realized and
The total value payable and
Special conditions, if any. Bid sheet is signed by the Auction Conducting Officer, Accounts Representative, Custodian DMS of scrap yard and the purchaser.

Q.283. (a). What is survey Committee and what are the functions of Survey Committee?

(b). What is Reserve Price? Name the factors which should be taken into account while fixing ‘Reserve Price’ for sale of scrap?

Ans. (a) Survey committee is the Committee of Senior scale or JA Grade officers of the Consuming Departments with Stores Depot Officer as convener member and major workshop officer as Secretary for survey of the Scrap items. This committee is a standing committee appointed by General Manager for the purpose of inspecting critically the condition of all Stores:

(a) That have deteriorated in value, for any reason,
(b) Broken or damaged in transit, or while in stock,
(c) Lying in the custody of the Stores Department for a long time and considered by Controller of Stores as having become unserviceable owing to obsolescence or other causes and
(d) Received as scrap from the line. After critical and careful examination of lots, survey committee submits its recommendations on the above line to COS office.

Survey sheets on the prescribed proforma are prepared in which recommendations against each item are recorded by the Secretary of the Committee and signed by all members of the survey committee. Recommendations can be accepted by Dy. CMM/CMM/COS.

Ans. (b) The decision to sell or not to sell a particular lot during the auction is taken by the Depot Officer. For taking this decision, he fixes a Price of each lot in advance called Reserve Price. Bids lower than the reserve prices may, however, be accepted by the Depot Officer where found expedient provided the Depot Officer doing so records his reasons in writing. This reserve price should be fixed by keeping following

factors in mind : - last sold rates in previous auctions - price obtained in auctions in the adjoining depots - market trends - condition of the lot - Lot Size and Location of Lot - Road Approachability

Q. 284.(a). Describe typical layout of a scrap yard in a General Stores Depot.

(b). What are accepted SAG committee recommendations for Auction Sale to counteract the influence of organised gangs/mafia?

Ans. (a) The Stores Department should arrange for regular collection of all items of Scrap from the consuming departments. In case of despatches of Scrap from out stations, it should be ensured that double handling is avoided and the scrap is sent as far as possible, direct to the depot, where the scrap is collected and scrap sales are conducted as each Railway has created a Scrap Depot or Scrap Yard within a depot on the consideration of freight charges, space availability and proximity to the market for disposal of scrap. Suitable arrangement should be made in the depot to ensure that the scrap ready for sales is not mixed with the scrap which is being receieved. For facilitating expeditious disposal of scrap, system of twin yards should be followed where the receipt and delivery of scrap lots is regulated from different work areas and the chance of sold lots getting mixed up with fresh receipts is also eliminated to large extent. An extension of this may be `Three yards' in which one yards is used for receiving scrap (say first four months), second yard for making lots and third yard for disposal of surveyed lots, as per classification in Scrap schedule. The lay out of a Scrap Yard may provide the following :

i) Central Sorting Yard : It is required for receipt of mixed scrap and sorting them to make separate lots for ultimate disposal. When scrap is returned to the stores depot, the Officer or subordinate returning it, should see that it is sorted out according to the correct nomenclature of the Price List before it is actually despatched. On receipt in the stores depot, the scrap should be further sorted out, if found necessary in the Central Sorting Yard.

ii) Reclamation Section : Reclamation Section should be set up for salvaging such items of scrap that may be modified into other useful items. While delivery of sold Rolling Stocks, the excluded components as per list of returnable items are to deposited to the Reclamation Section

iii) Yards (twin yard) : It is required for Storage and Disposals, Bins in each of the twin yards for `Lot' formation and storage of each particular item of scrap. There should be kept two sets of scrap bins or dumps for each kind of scrap, so that the QuestionPaper.Org scrap accumulated in one set of bins or dumps could be set apart at any time for the purpose of auction sale and pending such sale, the other set of bins will be used for accumulating further scrap for the next auction.

iv) Godowns : For Valuable scrap Materials, with bins & proper security arrangements for storage of non-ferrous metals, alloy sheet etc.

v) Facilities : Office having Computers, Internet, MMIS etc., parking place for trucks, roads, adequate yard lighting, basic security (like boundary wall etc.), RPF Security, Electronic Weigh Bridge, Electronic Weighing Machine.

Ans. (b) The accepted SAG committee recommendations for Auction Sale to counteract the influence of organised gangs/mafia are as under:

(i) The depot officer who normally conducts auctions in the Stores depot for the sale of scrap lying in that depot as also scrap lying in the Divisions serviced by it, may be asked to conduct auction at other venues, say other Stores depot, where similar auctions are being conducted by the other Depot Officers. Presence of different sets of buyers during auctions at new locations is expected to neutralize the undesirable influence of gang/mafia at the traditional venues.

(ii) There are instances where mafia operates in a manner which leads to removal/lifting of excess quantity of scrap, particularly the P-way scrap. If the step suggested at

(i) above does not result in sale of scrap to competitive bidders, (i.e. bidders other than the mafia), further accumulation of P-way scrap at such locations should be discontinued immediately. Fresh arising may be moved to suitable points which are expected to be free from the influence of mafia. In addition, efforts be made to shift out the accumulated scrap from the locations where mafia has a strong influence to other locations where Railways interests can be fully safeguarded. This is subject to that the scrap arisings should be shifted to the locations within the geographical jurisdiction of the same stockholder to facilitate smooth accountal. For this purpose, the division should finalise suitable contracts for movement of material.

(iii) If prospective buyers feel reluctant to participate in auctions at certain places, on account of threats from gangs/mafia, the auction supervising officer, apart from arranging the presence of the local police on the day of auction, may provide similar support at the time of delivery of the sold lots. For this purpose, the depot officer may also seek assistance from the DSC/Sr.DSC of the concerned Division and COS/CSC. This would instil greater confidence in the minds of the buyers.

(iv) Scrap rails measuring 1 meter or over, be sold on nominal weight basis, without applying the factor of wear and tear.

(v) Scrap Unbroken sleepers be sold on the basis of numbers.

(i) What is the object of Stock Verification of stores in the custody of the depot and other departmental officers & subordinates by the Accounts deptt ?

(ii) What is the prescribed frequency of verification for various items held in stock?

Ans: (i) Object of the Stock Verification:- The object of verification by the Accounts Department of Stores in the custody of the Depot and other Departmental Officers and Subordinate is to ensure that the materials accord with the description and specification shown in the balances appearing in the books and that excess or deficiencies, if any, noticed on such verification are properly investigated and accounted for. [ S-3201]

(ii) Frequency of Verification:- The Stores, whether in a Stores Depot or with a department should be verified by Stock Verifiers of the Accounts Department. The programme of inspection should be so arranged that all materials are verified as shown below:

1. Materials-at-site-works: Ordinarily verified once a year.
2. Stores with Imprest holders: Once in two years.
3. All tools and plant: Once in 3 years.
4. All materials in a Depot as Under:

4.1 A Category items- Once in 6 months.

4.2 B Category items: Once in a year.

4.3 C Category items: Once in two years.

4.4D Category items: Once in a year.

4.5 Miscellaneous items (Stores under the custody of Inspectors entrustedwith tools, instruments, etc.: Once in 3 years.

4.6 Verification of in-process-inventory in all work-shops and Production Uniots especially in respect of costly and pilferable items: Once in 3 years as per

4.7 Machinery and plant:Once in 3 years. (S-3202)

Q.286. List any four items which need not to be verified by the stock verifiers

Ans: (i) Dead Stock, Tools and Plant of low value.

(ii) Small Tools and Hand Tools with certain staff.

(iii) Petty Consumable Stores.

(iv) Dunnage. (S-3225, S-3226, 3227, 3228)

Q.287.In what circumstances the measurement or average weighment should be resorted to arrive at the total approximate weight of stocks of an article in Stores. How it is done?

Ans: Measurement or average weighment to arrive at the total approximate weight of stocks of an article should be resorted to only if there are heavy balances in hand. To arrive at average weighment, at least 2 percent in the case of steel and 10 percent in the case of other material of stores, should be weighed, such should then be measured by length, area or cubic contents. The measurements of the entire stock should them be taken and then reduced to weight by the data furnished by the sample quantity measured and weighed. If the weight thus arrived at is approximately the same as the depot book balance, the latter should be accepted as correct, if however, a heavy difference is disclosed thereby, all figures for measurements and weighments should be carefully rechecked and an additional 2 percent or 10 percent (as the case may be) weighed and measured. (S-3238)

Q.288. (i) What do you understand by “Stock Verification Sheet? What does it show? In how many copies it is prepared?

(ii) Please explain the procedure involved in disposal of Stock Sheets having discrepancies.

Ans: (i) Stock Verification Sheet is the sheet on which the results of stock verification are entered by the stock verifier. It is prepared by the stock verifier in triplicate (by carbon process) in Form no. S-1260 for all items of stores, the verification of which has been completed that day. The stock sheets should be prepared from the data in the field book. The stock sheet so prepared will contain only the ground balance. A Stock Verification Report has to be prepared at the time of posting the priced ledger in form S. 1260, showing the book balance, the ground balance as per the stock sheet and the excess shortage, if any. (S-3256)

(ii) Procedure involved in the disposal of Stock sheet having discrepancies:-

(i) Scrutiny of explanations of discrepancies:- The Stock sheets on return to the Stores Accounts Office, after explanation by the Depot Offices, should be carefully scrutinized by the authorized Inspector to see that every discrepancy has been explained. Further explanation should be called for in regard to QuestionPaper.Org remarks that are unsatisfactory. Accounts Notes will be issued in such cases. (S-3262)

(ii) Important points for scrutiny: While scrutinizing the stock sheets, the authorized Inspector should see: a. That explanations recorded against discrepancies represents facts;

b. That they are clear, intelligible and definite;
c. That independent explanations are furnished against individual discrepancies and that excesses under some items are not adjusted against shortages in dissimilar items. In case of analogous items (where sizes only differ) such adjustments may be passed upto 2% of the transaction since the date of last verification, but any bigger differences must be taken up.
d. That in case of items accounted for in numbers large differences do not arise:-
e. That where shortages found as a result of stock verification are attributed to the neglect of the subordinate holding charge of stores, the cost of the missing articles is invariably recovered from the parties at fault. The amount so recovered should be noted in a manuscript register of recoveries (S. 3263) maintained in the following form: (

i) Date
(ii) Name of Division.
(iii) Name of person debited.
(iv) Amount recovered.
(v) Authority.
(vi) Initials of stock verification clerk.

f. At the close of the financial year, the amounts should be totaled up and incorporated in the statement showing the activities of the Stock Verification Section prepared for the purposes of the annual statement of Stores Transactions (S. 3001); and

g. That in case of discrepancies arising as a result of improper classification/grouping and excess posted under items. (S-3263)

Q.289. What is departmental stock verification? Explain in detail.

Ans: As an important back check on the correct receipt, issue and balance of stores by the wards, it is necessary to have a departmental verification of stock by the Depot Officer to see whether the up to date balance of an item in the ledger agrees with the actual physical stock balance. This is called departmental stock verification. Such departmental verification arranged by the Depot Officer is in addition to the stock verification arranged by the Accounts Department. The departmental verification need only cover selected items such as items of large annual consumption having regular and frequent issues, items of high value like non-ferrous items, tool steel, etc., and items of a pilferable nature. The verification of physical balances should be done by an official other than the Ward-keeper-in-charge of the item of Stores. The depot officer may postpone the verification if the balances in stock are so heavy that a verification would involve large shifting of stock and the verification could be carried out conveniently at a later date when stocks are at a low level. The Depot Officer may waive verification in the following circumstances

a. Where the item has been verified by the Accounts Department within the last three months.

b. Where the Accounts Verification of the particular class of stores is in progress and the item is likely to be verified within the next two months.

c. Where the item has heavy balances the verification of which involves much labour and handling charges. If there is an excess of stock or deficiency in stock, the official should prepare a Departmental Stock Verification sheet and dispose it as per procedure.

Q.290. Describe various types of inventories that can be held by a organization?

Ans: In any organization, there may be following four types of inventory:

a. Raw materials & parts: These may include all raw materials, components and assemblies used in the manufacture of a product;

b. Consumables & Spares : These may include materials required for maintenance and day-to-day operation; c. Work in progress: These are items under various stages of production not yet converted as finished goods;

d. Finished Products: Finished goods not yet sold or put into use.

Q.291. Describe the following inventory models:

(i) The Basic (EOQ) Model

(ii) JIT Model

Ans: (i) The Basic (EOQ) Model: Depending upon various variables, different inventory models have been developed. Different models take different costs into account. One of the popular model developed for items of repetitive nature (dynamic), future demands for which can be projected with certainty is Economic Order Quantity (EOQ) model. In addition to factors mentioned above, this model assumes that price of the material remains constant with time and also does not vary with order quantity. This model can be developed mathematically by differentiating total cost of inventory (ordering cost + inventory carrying cost) with respect to Quantity. The formula so derived is given below : Economic Order Quantity (EOQ) = Sq. Rt. { 2xAxCo / (Cu x Ci) } Where, A = Annual Consumption Quantity, Co = Cost of placing one order Ci = Annual inventory carrying cost represented as fraction, Cu = Unit Cost (Rate/Unit) of the material.

(ii) JIT Model Just-in Time inventory management is the process of ordering and receiving inventory only when it is needed and not before. This means that organization does not hold the safety stock and operates with low inventory levels. This strategy helps the organization to lower their inventory carrying cost. JIT inventory model is a cost cutting inventory management strategy though it lead to stock outs. The goal of JPI model is to improve return on investment by reducing non-essential costs. Example: Toyota Motors, Maruti etc.

Q.292. Write short notes on (i) ABC Analysis (ii) VED Analysis (iii) FSN Analysis (iv) XYZ Analysis.

Ans: A-B-C Analysis : This analysis is based upon Pareto Principle according to which in many situations, majority of the activity is governed by very few attributes.

About 5% of the total stock items account for 70% of the total value of the item stocked. These are called as ‘A’ category items.
About 15% of the total stock items account for 20% of the total value of the item stocked. These are called as ‘B’ category items .
About 80% of the total stock items account for only 10% of the total value of the item stocked. These are called as ‘C’ category items o For the purpose of Inventory Control, A category items are most important. Therefore, they are closely monitored at highest level at very frequent intervals. o Stock verification:
of A category items is carried out every six months;
for B category items every year and
once in two years for C category items. o To achieve better inventory turnover ratio, we intend to keep average stocks of 3 months, 6 months and 12 months of A, B and C category items respectively.

(i) V-E-D Classification : A-B-C Classification is on the basis of consumption value of an item and does not give any importance to the criticality of the item and therefore, only A-B-C Classification is not adequate. Classification done on the basis of criticality of the item is known as V-E-D, where the items are classified as Vital, Essential and Desirable.

Vital items are those items which are very critical for the operations and do not permit any corrective time i.e. they cannot be procured off the shelf if they are not available.
Essential items are comparatively less vital and work without them cannot be managed for few days. All remaining items are known as Desirable items.

(ii) FSN Analysis In this system the item is categorized as “Fast”, “Slow” and “Non moving” items.

Specific attention is given on fast moving items so that they do not go out of stock.
Periodical review of slow and non-moving item to prevent the items becoming in active/over stock/surplus. This analysis is helpful in preventing the items from becoming inactive/over stock/surplus/obsolescent.

(iv) XYZ Analysis In this analysis the items are classified as “X, “Y” and “Z” based on inventory value of each item on the date of review. It helps in controlling the value balance to barest minimum.

Q.293. What are the inventory performance indices on Indian Railways? Briefly describe.
Ans: Efficiency of an inventory management system is generally measured by two measures:-

(a) Service level : This is the percentage of compliance of demands of user. This level is set by the top management who knows that cost of providing 100% service level (i.e. meeting with all demands for materials at all times) is prohibitively high. o Therefore, it is attempted to attain a service level between 95 to 98% depending upon criticality of the items. In Railways, we try to comply demands of vital, safety, passenger amenity and cleanliness items up to 100%, and give compliance of all other items between 95 to 98%.

(b) Inventory turnover ratio : This is a measure of average stocks held in stock at a time. This is measured in percentage by the following formula: Average value of stock of all materials held in stock T/O ratio = _________________________________________________ Total value of issues made during the year

In Railways, Stores Balances are reflecting in various capital suspense head e.g., Purchase Suspense (7110, 7120, 7130), Sale Suspense (7140), Stock Suspense (7150, 7160).
As per accounting system for working out inventory turnover ratio, we divide debit balances outstanding in all above suspense heads on 31st March of the year by total issues made from 1st April to 31st March. This ratio is multiplied by 100 to get percentage. TOR should be as minimum as possible. In Rly, we try to achieve turnover ratio of about 10%.

(c) As overstock and inactive items are not contributing towards inventory turnover, we should control their balances. In Railways, total balances of inactive stores (items not moved for past 12 months or more) and overstocks should not be more than 5% of total Stores Balances.

Q.294. What do you understand by the terms “Inactive”, “Overstock” and “Surplus” stores? What are the reasons for their accrual ? How these can be prevented to accumulate?
Ans: INACTIVE ITEMS Items not drawn for more than one year are termed as Inactive Items.

OVER STOCK ITEMS

Overstocks have been defined as quantities available over and above the requirements of the next contract period for which Annual Estimate sheets have been submitted.
Overstocks are the quantities in excess of 50 % of the total last year’s issues of the particular item, as per Stores, Code para 2230-S. However with the tighter control of stores held in stock, particularly for high value items, Board has defined overstocks at one time as under:-
For ‘A’ Category – Stocks over 6 months requirements are treated as overstocks.
For ‘B’ Category– Stocks over12 months requirements are treated as overstocks.
For ‘C’ Category–Stocks over 24 months requirements are treated as overstocks.

SURPLUS STORES

Surplus stocks are stocks over and above the requirements of the Railway.
As per stores Code paras 2216-S, stores may be considered as surplus to the requirements of the Railway only if they have not been issued for a long time.
Items, that have no issues or rare isues in the past 24 months and which have not been issued from stock for Railway consumption for a period of 2 years, are called as Surplus stores, which are further classified as Dead Surplus and Movable Surplus.
Movable surplus comprises of items of stores, which have not been drawn for a period of 24 months but which, it is anticipated, will be utilized in the near future.
Dead surplus comprises of item of stores, which has not been issued for the past 24 months and is not likely to be utilized on any Railway within the next 2 years.
There are some items, which do not ordinarily wear out or require renewal and stocks of which are not readily available, but are essential to maintain to meet occasional emergencies. Such stores are termed as Emergency stores and, even if not issued for a period of two years or more, should not be classified as Surplus stores.
The classification of an item of stores as SURPLUS will be done only by the Head Quarters office and not by Depots in respect of items costing over Rs. 1,000/- . At the time of the annual review, it should be examined whether non-moving items could be set off against other stock items of any of the depots and such of those items, which are not likely to be drawn during the next two years, should be declared as surplus. Reasons for accrual: The basic factors which cause inactive, overstock and surplus stores are-
Change in design of Plants, Equipments.
Changes in rolling stock design and its components.
Modification of the existing standards/specifications and introduction of new standards/specifications.
Changes and modifications in the procedure of manufacture and utility of the item.
Scrapping of Plant & Machinery and Rolling stock for which the spares are stocked on the Railways.
Sudden cancellation of construction and project works.
Purchase or manufacture of non-standard items. Measures required to prevent accumulation of inactive, overstock and surplus stores :-

1) Review of stock status of each item in respect of A Value is done by COS/CMM monthly, by having a watch on the movement of the items and Purchase Officers are alerted to regulate the deliveries, both on the Pre Contract/Order or Post Contract Order stage.

2) A systematic review is done in the case of B and C Value items to ensure correct fixation of control levels. E.O.Q. concept is incorporated in fixing order quantity.

3) Phased deliveries are arranged to prevent items becoming overstock.

4) Referring to consumer is done in case of sudden fall in consumption, so as to take the above preventive measures.

5) Inspector of Stores Accounts should have surprise inspection of stores on line and ensure that stores, either in excess to the stock holder’s requirements or unwanted stores, do not lie there and cause heavy surplus, but returned to Stores.

6) Stock verifiers during the course of stock verification bring to the notice of the Depot officers through narrative report, any inactive items lying in the ward, so as to take preventive measures in wiping out such items.

7) Exception Reports from computers are utilized for the above exercises.

Q.295. The opening balance, total receipt, total issues and the closing balance of the stores depots of a zonal railway are given below:-

Based on the above figures, please answer:-
(i) Which is the Best Depot in terms of T.O.R?
(ii) Which is the Worst Depot in terms of T.O.R?
(iii) Which Depots have achieved TOR better than TOR target of 15%

(i) Best Depot: GSD/XYZ With TOR 11.72%
(ii)Worst Depot: ELS/ABC with TOR 82.11%
(iii) Depot which has achieved TOR better than TOR target of 15%: GSD/XYZ

Q.296. What is “Draft Para”? How it is disposed?

Ans: The Draft Para is the Para prepared by the chief Auditor to incorporate the serious irregularities in the Railway Audit Report which could not be disposed in preliminary factual statements. When it is decided by the chief Auditor that the preliminary factual statement is to be converted in to Draft Para, prepares the same and send it the General Manager of the concerned Railway. The advance copies of the draft Para with connected correspondence and sent to FA QuestionPaper.Org & CAO, H.O.D. Addl. Dy CAG (Railways) and the Director (Accounts)/Rly Board to facilitate prompt action and detailed examination of the points brought out in the draft paragraph. The G.M should send the reply of the draft Para to Chief Auditor duly approved by the Rly Board within 8 weeks duly endorsing copies to the Addl. Dy CAG (Railways) and Director/Accounts(Rlys Board).To enable the Rly Board to approve the draft reply prepared by the Rly Additional information to Rly Board along with the proposed reply to draft Para :-

a) History of the case with copies of relevant correspondence not covered in the chief Auditor’s letter.

b) Sentence wise comments on the draft Para Specifically Verifying/correcting the facts mentioned there.

c) A chronological summery of the case where there has been unusual delay.

d) Remedies action called for or taken to avoid similar cases in future.

e) Disciplinary aspects where individual lapses have been brought in light.

f) Disciplinary aspects where individual lapses have been brought in light.

If the AG (Rly) satisfies from the reply, he drop the draft Para with the condition to ensure that the proper action will be taken as assured in report otherwise he send the Para for inclusion in the annual report to be presented in the parliament. The action on the Para of the report is then taken as per recommendation of the PAC.

Q.297. Write a short notes on Workman’s Compensation act.

Ans. The main features of the Workman’s Compensation act are as under:-

Object:
The objective of this Act is that in the case of an employment injury compensation be provided to the injured workman and in case of his death to his dependants.

Employer to pay compensation:

In case a personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer is liable to pay compensation in accordance with the provision of the Act within 30 days from the date when it fell due otherwise he would also be liable to pay interest and penalty.

When employer is not liable: In case the disablement of workman is three or less days; except in case of death when the injury is caused due to influence of drink or drug taken by the workman or upon his willful disobedience to obey safety rules or removal of safety guards by him.

Amount of compensation:

(1) in case of death:- an amount equal to 50% of the monthly wage multiplied by the relevant factor as given in Schedule IV of the Act or Rs. 80,000/- whichever is more.
(2) In case of permanent total disablement, it is 60% or Rs. 90,000/- whichever is more and
(3) In case of permanent partial disablement occurs then the compensation is proportionate to the disability arrived as at (2) above.

Notice: An injured person or his dependants have to give a notice to the employer to pay compensation.

Claim: Upon the failure or refusal of an employer to give compensation, an application isto the made in Form - F to the Commissioner under the Workmen's Compensation Act, 1923 who is the Assistant Labour Commissioner or the Labour-cum-Conciliation Officer of the area where the accident took place or where the claimant ordinarily resides orwhere the employer has his registered office. After hearing both the parties, the Commissioner decides the claim. Contracting out: Any contract or agreement whereby an injured person or his dependant relinquishes or reduce his right to receive compensation is null and void to that extent.

Appeal: An appeal lies to the High Court against the orders of the Commissioner with regard to the awarding or refusing to award compensation, or imposing interest or penalty, or regarding distribution of compensation etc.

Recovery : The amount of compensation awarded by the Commissioner is to be recovered as arrears of land revenue.

Q. 298. Write short notes on:-
(i) M&P Program
(ii) Works Program

Ans: (i) M&P Program The proposal spelling out the requirements of various Machinery and Plant required by all the departments during next year is called M&P Programme. It is complied by CME of each Railway and sent to Railway Board and is finally approved by Parliament through Budget.

(ii) Works Program The proposal of works in order to keep up a certain level of maintenance in respect of all the departments like Engineering, Signal, Electrical etc and also new works, prepared in advance of the period during which these works are to be carried out is called Works Programme. It is compiled by PCE of each Railway and sent to Railway Board and is finally approved by Parliament through Budget.

Q.299. What do you understand by Book Average Rate? How it is determined?

Ans. Book Average Rate (BAR) means the average rate on which an item is said to be on books. It is arrived by dividing the value balance by quantity balance and is used for pricing further issues. The BAR is updated at the time of posting of fresh receipt voucher for that item.

Q.300: List the Minor Penalties. Write down the procedure for imposing minor penalty.
Ans : Following are the minor penalties which can be imposed upon a railway servant as a consequence of DAR action:_

i) Censure
ii) With holding of passes/PTOs or both
iii) With holding of increments (with or without cumulative effect)
iv) Recovery from pay whole or part of any pecuniary loss caused to the Railway administration by his negligence etc.
v) With holding of promotion for a specific period.
vi) Reduction to lower stage in time scale of pay by one stage for not more than 3 year without cumulative effect & not adversely affecting his pension. Procedure for imposing a minor penalty:

i) A memorandum in Standard form 11 is issued to the charged employee with the advice to submit his representation if any within 10 days.

ii) On receipt of reply of the employee, the same is examined by the DA. Based on the reply, the penalty is decided and imposed by the disciplinary authority by issuing NIP (Notice Imposing Penalty). If the charged employee fails to submit reply within the specified time, an parte decision can be taken by disciplinary authority for imposing Minor penalty.

Q.301. What are the Cannons of financial propriety?

Ans: The Cannons of financial propriety are as under:-
1. The expenditure should not prima facie be more than the occasion demands, and that every government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of the expenditure of his own money.

2. No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage.

3. Public money should not be utilized for the benefit of a particular person or section of the community, unless:-
(a)The amount or expenditure involved is insignificant Or

(b) A claim for the amount could be enforced in a court of law Or

(c) The expenditure is in pursuance of a recognized policy or custom.

4. The amount of allowances, such as travelling allowances, granted to meet expenditure of a particular type, should be so regulated that the allowances are not on the whole sources of profit to the recipients.

Note:- All proposals involving financial implications except those which have been specifically exempted for this purpose should be referred to finance branch for advice before these are sanctioned.

Q.302 What is Priced Ledger ?
Ans: The priced ledgers are maintained by Stores Accounts with the object of recording the physical transaction as it takes place in the depot as well as the value of physical transaction. Every transaction in the stores is effected through receipt and issue vouchers. All the transaction which originate from the Depot having a bearing on the value of stores received in or issued from the depot, are effected in the priced ledgers of the Stores Accounts Office. The priced ledgers are maintained for each item, being distinguished by a price list No. under various classes of stores.

Q.303. Describe various groups of operation involved in maintenance of priced ledge of stores?
Ans: various groups of operation involved in maintenance of priced ledge of stores are as under:- Group A
(i) The receipt and check of vouchers and forwarding the same to Data Centre.
(ii) Periodical listing of the transactions and forwarding the same to Data Centre.
(iii) Opening and closing of priced ledgers as advised by the Depot Officer, after due check. (iv)checking of punched data, as per data processing procedures
(v) Accurate and timely maintenance of priced ledgers through EDP Centre.

Group B
(i) Scrutiny of all unmatched vouchers, vouchers causing irregular balance items and other rejected vouchers and their clearance.
(ii) Scrutiny of printed ledgers for abnormal and unreasonable results and their elimination. Group C (i) The revision of rates.
(ii) The review of the priced ledgers. (S-2506)

Q.304. What is the role of Stores depot in preparation of price ledger?
Ans: a) The vouchers should be made over by the Depot to the Stores Accounts Office, daily.

b) The vouchers for a date, say the first of a month, should be completely delivered to the Stores Accounts Office, without fail, wherever no holiday intervenes, on the morning of the third, within the hour of the opening of the office.

c) The vouchers would be accompanied by the Forwarding Memo (S. 1256).

d) Where the stores depot and the Stores Accounts Office are not in the same station, the time allowed may be modified to suit local conditions taking care to see that there is no avoidable delay in the regular submission of the vouchers to the Accounts Office.

e) The Accounts Office shall after checking the vouchers, bundle them in batches (according to the voucher code and date) periodically as per programme laid down by the Data Centre and deliver them on these dates. (S-2509)

Q 305. Describe Unified PL Number.
Ans: Out of the 75 groups under which the railways stores have been classified, some of the groups are unified. Under unified groups, any particular item is identified on all railways with one PL No. Individual railways shall therefore not allot regular PL Nos. to individual items under the unified groups and this will be done only by the railway that originally prepared the unified price list book.

Q. 306. Describe Allocation of Expenditure. How it differs from Classification of Expenditure?
Ans: 'Allocation' of expenditure implies identifying its source of Finance where as 'classification' deals with the detailed heads of account under which expenditure is recorded in the accounting books of the Railway. Railway expenditure is financed from (loan) Capital provided by the General Revenues, Railway Funds and Current Revenues. Accordingly, the expenditure is allocated to:

(i) 'Capital',

(ii) the Depreciation Reserve Fund

(iii) the Development Fund,

(iv) the Accident Compensation, Safety and Passenger Amenities Fund,

(v) Open Line Works (Revenue) and

(vi) Ordinary Revenue.

Q. 307. What are Stores Suspense accounts?

Ans: Stores are purchased and kept in different stores depots for onward issue to consuming departments as and when required by them. However no one knows when, where and by whom these stores will be required and for what purpose whether for capital or revenue. Capital Requirements are “Works” requirement and revenue requirements are “maintenance” requirements. Suspense account is the account in which the stores are kept in the stores depot till these are issued and cost debited to a final head of account. The stores are therefore kept in a capital suspense account until they are issued accordingly charged to a revenue head or a capital work.

Q. 308. Differentiate between Purchase Suspense and Stores Suspense.
Ans: When a firm supplies /dispatches the material to the stores depot and eventually gets the payment for the consignment, it becomes necessary to maintain an account to be able to watch receipt of material against a payment made and vice-versa. This is called purchase suspense account and is debited every time a payment is made and is credited when some material is received in the stores depot. All such entries of Purchase suspense are transferred at the end of the month to a different suspense head i.e. stores suspense by crediting purchase suspense and debiting stores suspense. Stores Suspense account is used for watching the receipt and issue of stores upto the final point of consumption. Materials purchased are thus monitored until finally consumed.. Stores suspense comprises of the following sub heads:

1. Workshop Manufacturing Suspense A/c 2. Miscellaneous Advance capital A/c

3. Store In Transit Suspense

4. Sale Suspense.

Q. 309. Write Short Notes on Standardization and Variety Reduction.
Ans: Standardization: Industrial Standardization is the process of establishing agreements upon acceptable level of various characteristics of a product, e.g., quality, design, dimensions, physical characteristics , chemical composition, performance, etc on the basis of study and experience gained by the industrial firms sometimes in co-operation with statutory bodies or the government. The established agreement or uniform identification is termed a standard/specification. True standardization does not restrict competition. Variety Reduction: A scientific critical analysis of items stocked is carried out with the intension of eliminating non standard or non rationalized item or items whose demand is relatively small and which can be conveniently merged with other item or items which are not readily procurable and which can be substituted with other items already stocked. Variety reduction results in low procurement and inventory carrying cost. Further fewer items will mean more personalized attention and there will be fewer stock outs and service level will also improve.

Q. 310. Write a short note on Computerization in Stores Deptt of NCR.
Ans: Computerization in Stores Department Materials Management activities have been fully automated in Stores Department. Complete purchase work in COS Office and receipt, accountal and issue of materials in depots is performed through MMIS. Only matters related with Establishment/General Administration are not yet automated in Stores Department. All the Purchase and Depot Staff have working knowledge of Computers. With every new development in MMIS and EPS, necessary training is imparted to officers/staff. MMIS All the Materials Management activities are performed through an application called “MMIS”. This application consists of five modules namely

(i) Purchase Module

(ii) Depot Module

(iii) Finance Module

(iv) Uniform Module and

(v) Sales & Auction Module.

It covers different material management activities but are integrated with each other. This application based on Oracle 10G at the back end and Developer 2K at the front end, covers all the Stores activities right from generation of demands to accountal of materials and bill passing by Accounts Department. MMIS is being used over NCR w.e.f 01.04.2005 and its performance has been highly satisfactory. With the help of MMIS, Stores department has been able to meet material requirement of NCR with minimum staff. Present status of implementation of various Modules is as under:-

(i) Purchase Module - COS Office, Dy.CMM/IRPMU, 09 Depots and 03 Divisions

(ii) Depot Module - (CWE&G/JHS, DSL/JHS, ELS/JHS, DSL/AGRA, RSK/STLI, DSL/GWL, GSD/CNB, ETD/CNB & TMS/CNB )

(iii) Finance Module - FA&CAO Office.

(iv) Sales & Auction Module – Dy. CMM/GSD/CNB & JHS , AMM/RSK/STLI Sr. DMM/S&T/ALD

(v) Uniform Module- ( GSD/JHS, Sr.DMM/JHS, Sr. DMM/AGC & Sr.DMM/ALD ) For better exploitation of its benefits, MMIS has been made web-based using Broadband connectivity. This will allow access to and help in sharing of information between internal and external users. This will also eliminate the requirement of separate servers at all the points of implementation and it will be possible to maintain all the modules from HQ itself. Field Units which are not connected through Rail net shall also be able to use MMIS through internet. Advantages Application tested widely by all the Zonal Railways /PUs. Covers all the activities related with procurement of materials. Easier monitoring of activities at different stages of procurement cycle. Allows answers to day to day queries. Facilitates proper record keeping. Provides last procurement data for initiating new purchases. Scope for other departments Others departments dealing with procurement of materials can also use this application. For offices situated in GM building, separate purchase section can be created in MMIS and they can start using MMIS in the present form. However, if there are any deviations in procurement procedures, MMIS would require to be installed on a separate server and re-customised as per the requirement of the user departments. On Line Supply orders (DGS&D) All supply orders against DGS&D rate contracts are placed online on DGS&D website. Corrigendum issued against DGS&D supply orders is also made online on DGS&D website. NCR Website Stores Department page of NCR website is regularly updated and following information is available on our website:

i. Organization

ii. Telephone Number of Stores officers.

iii. Vendor Registration Procedures, Forms, Registration Status, Renewal Status, Registered Firms, Trade group List.

iv. Instruction to tenderer

v. General Conditions for supply contract

vi. IR-Stores Code

vii. Stores Pink Book viii. Schedule of Powers

Q. 311. Write a short note on IREPS.
Ans: E-procurement System is a web based application which will keep procurement data of all the Railways at one place for mutual sharing. A web site “www.ireps.gov.in” has been rolled out by CRIS for this purpose. This web site has an independent web page for NCR for working on E-Procurement System. Tenders generated in MMIS are uploaded on NCR’s web pages. These tenders are encrypted with the help of digital signatures. Venders upload their offers on this web page and encrypt it with the help of the digital signatures in such a way that their offers can not be de-crypted before the pre-determined time of tender opening. Opening of these e-Tenders is done by stores and accounts officials using their digital signatures. Tabulation statements are printed at the time of tender opening itself. All the tenders are being processed through e-procurement system. Implementation of e-procurement system has reduced the time taken in decision of tenders substantially and improved the overall procurement efficiency in Stores Department.

Q. 312. Describe deregistration or suspension of registration. How it is different from banning a business?
Ans: Whenever supplier misbehaves or indulges in malpractices or attempts to cheat the railways, Registration of his firm may be suspended temporarily by zonal railway for a certain period. This is called deregistration or suspension of the firm. This is relatively milder penal action. Banning of business is a serious action that is taken by Ministry of Railways of Vigilance Directorate of Railway Board. Any case of cheating or attempt to cheat or indulging in corrupt practices or anti-national activity can result in banning of business. Banning a business may be at departmental level or all India level. Banning is usually for a specified period but in serious cases, the firm can even be banned for an indefinite period.

1 comment:

Unknown said...: kabile tareef .; August 7, 2020 at 7:21 PM

Syllabus	Study Materiel	Exam Group 'B'	Group D To C	Financial / Account	Rajbhash	Establishment / Personnel
Operating	Commercial	S & T	C & W	Loco	Medical	Law Asst
Electrical	P Way / Works	TRD / OHE / PSI	Engineering (Bridge)	Engineering (Stores)	RRB	Question & Answer (YouTube)

INDIAN RAILWAY QUESTION BANK

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QUESTION BANK WITH ANSWER - GROUP ‘B’ AMM ( Stores) PART I

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