Surveys

Surveys

By Shri Benhur, SSO(A)/Hqrs/SC Rly

ü  A thorough examination   of geographical area,  to gather  information  or measure and record the details of an area of the land.

ü  Preliminary investigations are conducted to collect data prior to the actual commencement of construction of New Line, GC, Doubling other traffic facility works.

ü  Hither to, the field work in survey was a complicated issue but with the usage modern technology the surveys have become easier with accurate results as compared to the good old days.

ü  Some of the modern equipments used in conducting surveys are : 

1.Large scale topographic Maps.. Contains large scale details, shows natural and manmade features

2. Precision Maps … It produces scrollable, zoom able maps inside UI view without an internet 

3. Air Cameras.. Drones

4. Electronic distance measure.. Electromagnetic energy determines the length of the line

5. First order plotting.. Program based Graphs.

Types of Surveys in Railways

1. Reconnaissance Engineering cum- Traffic Survey (RECTS)  (Budget Rs. 10000/- per KM)

ü  A detailed survey of traffic conditions of  a section  of an area   with a view to asses the traffic prospects and financial implications of new line, other traffic facilities, GC, Doubling & other Line capacity works. 

ü  A thorough investigation will be carried out by the team to assess the potential sources to generate traffic Viz:

1.General characteristics  of the area  and extent of  cultivation

2. Local industries and religious festivals

3.The general conditions such as prosperity of people in the locality and density of   population and its distribution

4. The probable amount of traffic to be served by the new railway line. 

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5. The probable new lines to be opened up to join large trade centers.

6. Nature and volume of exports and their destination and origin

7.The amount of imports and centers of their distribution 

8. Possibilities of development of new industries and irrigation schemes as a result of new railway lines

9. Tourism and Tourist prospects

RECTS-II

An Engineering survey involving rough and rapid investigation of an area.   In this survey all the possible routes have to be examined along with the construction and operational cost  of a Projected line. 

This survey should collect the following information:

1. Physical features of an area like  Hills  valleys water bodies, wetland climate islands etc.

2. Nature of soil

3. Streams and rivers in the area especially those likely to be crossed by the track, their direction of flow, approximate width and depth.

4. Position of hills and the lakes.

Besides indicating the  approximate distance, height, curvature, Necessity to cut and fills suitable sites for the station major Bridges Roads etc,.

Instruments used in Reconnaissance survey

1.Aneroid Barometer:  used for measuring the atmospheric  pressure

2.Prismatic Compass: It’s a navigating and surveying instrument  used for determining course, way points and directions. 

3. Binoculars telescope

4. pedometer: It records and displays the number of steps you take based on the body movements

The data collected are tabulated to gauge the projected traffic potential of the proposed new line and survey report with all the details collected  along with the details of  other alternate routes examined  will be submitted to the competent authority

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II. Preliminary Engineering cum- Traffic survey  (PECTS) (Budget Rs. 15000/- per KM)

The object of this  Survey is 

1.To conduct the survey work along the alternative routes (found out by reconnaissance  survey) with the help of theodolite and leveling instruments.

2. To determine the greater accuracy  of the cost of railway line, along  with the  alternative routes, involving cost of removing obstruction, construction of bridges etc.

3.To decide the most economical and efficient route

Importance of PECTS 

The preliminary survey  decides the final route and recommend, only one particular route in preference to other alternatives. Thus, the preliminary survey should be carried out with greater precision as the alignment of final route depends on it 

Instruments used in preliminary survey

1. Dumpy Level

2. Prismatic Compass

3. Tachometer 

4. Plane Table

Final location survey (FSL)

This survey will be under  taken only when it is decided by the competent authority that the project will be taken up for construction.

The works involved in a Final location survey can be briefly assumed as under:

1. Staking of the centre line.

2. Leveling along with centre line 

3. A plane table survey of the strip of he land on either side.

4 A plane table survey of Rivers, Station site and junction arrangements.

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Instruments used 

1. Theodelite

2.Precise Level

3. Steel Tape

Before a decision is taken to make investment in a project it is necessary to examine various alternatives including optimization of operating point of view  and best line is selected  to make an ideal investment.

The survey  report will have following chapters:

1. Introduction 

2. Traffic Projections

3. Analysis of alternatives

4. Characteristics of project area

5. Standard of Construction

6. Route selection

7. Project Engineering

8. Cost, Phasing and investment schedule

9. Financial Appraisal

10.Recomendation

Basic Principles of Survey

1. To work from the whole to the part.

The whole area is first enclosed by main points  ( i.e controlling stations) and main survey lines. The area is then divided into number of parts by forming well conditioned triangles. 

The main survey lines are measured very accurately with a standard chain, then the sides of the Triangles are measured.

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II. To locate a new station by at least two  measurement (linear & angular) from fixed points

The points are located by linear or angular measurement or by both in survey.

Let A & B are control points then C is established .

The distance between A & B can be measured accurately and then plotted on the sheet to some scale.

Productivity Test. Productivity test is a test applied to see if the works sanctioned due to having been considered as productive or remunerative have or not actually proved as such. Accordingly earnings there from or savings  in working expenses eventually realized are carefully compared with those anticipated.  This examination is called as Productivity Test.

This test is not applied for the following works:

1. Residential Buildings

2. Assisted Sidings  & Rolling  Stock.

New Lines

The actual  cash inflows and the rate of return for each year to the end of 5^th /7^th year from the date of commissioning  the project is worked out and the results of the review are prepared along with the following statement.

1. Passenger earnings from traffic local to the branch line

2. Other coaching earnings from traffic local to the branch line

3. Tonnage of goods Traffic from traffic local to the branch line

4. Tonnage of goods traffic interchanged with the existing lines

5. Earnings from Goods traffic local to the branch lines

6. Earnings from goods interchanged with the existing lines.

These  statements are prepared and sent for each financial year after the date of opening of the line for a period of11 years.

Open line works

The works undertaken with  a definite object of increasing earnings or reducing expenditure to which such test can be applied  with in three to five years of their completion  will be selected out of those charged to capital on the grounds of remuneration.

A statement in following format is prepared.

1. Reference to sanctioned estimate 

2. Brief particulars of works selected for application of Productivity test

3.Total estimated cost.

4. Nature and extent of productivity claimed in the estimate.

5. Brief remarks about the results of the test

The object is not only  to furnish the results actually achieved to  the authority  who sanctioned the estimates but also  serves  as a   guiding factor in future.

IRPSM

Proportionate Budget Allotment or BP limits

Proportionate Budget allotment

or

BP limits ( Budgetary Proportion limits)

(short notes question -5 marks - 2012  App. III A  Books & Budget (with books)  and also many times asked earlier)

Ref: Para Nos. 508 to 511 of Indian Rlys.Financial Code vol.I

Purpose:

Carrying out a meaningful comparison of the actual workings expenses (for the month as well as to end of month) with the Budget Allotment.

BP limits are a tool of Control over Expenditure.

To whom, the responsibility lies: 

The executives, to whom the allotment/grant has been placed. Also they are the responsible for the control of expenditure against the budget allotment. 

But the Accounts officer, in his capacity as the financial adviser to the administration, to render all possible assistance to the controlling/spending authorities in exercise of Proportionate Budget allotment/fixing Budget Proportion (BP) limits.

How it done: 

Distribute the sanctioned allotment for the whole year into 12 months after taking all known factors of disturbance or special features into account.

The following factors keep in mind before resort to distribution of Grant/Allotment over the full years.

(i)     Throw forward from the previous year.

(ii)    All expenditure whether in cash or by transfer, the liability for which already exists, but which is not likely to be distributed evenly during the year, whether because it is of a periodical nature (say PLB), or because it is contingent on the receipt of supplies, or for any other reason.

(iii)   Expenditure which is practically fixed and evenly distributed throughout the year.

(iv)  Other expenditure which is likely to be incurred during the year but liabilities for which have yet to be incurred.

(v)  The need to keep some amount as a reserve for meeting fresh or unanticipated expenditure.

Examples:

i) Pay - Usually the allotment/grant under PU: 01 ( Pay) distributed over the 12 months almost uniformly (from July to March - a little bit more than April to June months because grant of annual increment in July month).  Also the No. of retirements and recruitments also bear in mind before distributing such allotment. 

ii) PLB -  Entire grant is distributed in September month ( for Dussera festival).  It is better to leave some grant in the rest of months after September for arranging late payments of PLB) 

iii) Contractual payments : Depend on the execution of actual works

Certain heads say Establishment expenses such as Salaries:

Past actuals as worked out for a number of years may form the basis for fixing BP limits for current year. Because such expenditure does not fluctuate from month to month.

How purpose is fulfilled: 

As above, the BP limits for each month worked out for each Sub Head of Grant and the progress of expenditure under each sub-head is then watched from month to month through MFRs - Monthly Financial Reviews in order to see that the expenditure is according to the BP limits and not at a pace which is likely to lead an excess at the end of year.

Note: On MFR, another post will be updated into the Blog.

Traffic Account

The principle of Railway account is that all -Revenue earnings and expenditures should be accounted in the month to which those relate. for the purpose of accountal of traffic earnings in the related month and watching  the progress of their realisation , a separate separate suspense head is maintained called traffic account.

this account serves the same purpose for earnings as demands payable does for -Revenue exp3nditure . this is debtor for all earnings whether local or foreign for the realisation of which the home Railway is responsible and is creditor for all recoveries of such earnings. the balances therefore represent unrealised earnings at station balance sheets and in the accounts office balance sheets maintained by the accounts office.

OPERATING RATIO

Operating Ratio: The operating ratio is broadly speaking, the ratio between working expenses and gross earnings and as such is an important figure in the estimation of the relative operating efficiency. This operating ratio depends on gross earning as well as on working expenses. The smaller the operationg ratio, the more the economical and efficient the working other things being equal. This ratio is not always a good criterion of the relative operating efficiency of different Railways where the conditions of working vay considerably, and this is particularly so in India where differences in climate, topography, commercial and agricultural activity show so little uniformity. Moreover, the present systems of working expenses/gross earnings do not provide for meticulous apportionment/adjustments between Railways, nor do they leave enough freedom of fixing rates of freight and fares.

In comparing the ratio of one year with another of the same Railways. Also , great care, must be taken to see that the terms"working expenses" and "gross earnings" are clearly defined and that the figures have been compiled on the same basis. The object of a railway Administration is to keep this ratio as low as possible consistent with efficient working and good maintenance; it will tend to fall with efficient working, increase of traffic and fall in expenditure. This will also fall or rise with variation in the rates charged to the public for movement of passenger and good. Allowances has also be made for the peculiar features affecting earnings/working expenses of a particular year such as occurrence of breaches, realignment of routes, gauge conversion etc.

Hence it can be said that the operating ratio is not a measure of the efficiency of the operating staff. The operating ratio is correctly comparable when other things are equal, or if due provision is made for variation in other factors.

However, in the present question, assuming that operating ratio of both the zones'A' & 'B' have been computed on the basis of same standards and same set of environment  and other factors being equal. It can be safely said that zone 'A' Railway is more efficient in comparison to Zon "B" Railway as thej operating ratio zone 'A' is 81.16% which is less than 96.58% of zone'B'.

PROFORMA ADJUSTMENT

                   

PROFORMA ADJUSTMENT:    Adjustment with non-Railway account officers on proforma basis.

All adjustments involving amounts of magnitude which cannot be made through Reserve Bank by 25th April should be intimated to the Railway Board by 1st May positively stating the circumstances under which the adjustment cold not be made. The transactions should not, however, be included, in the Accounts till an intimation to that effect has been received from the Board who act after approval of the Controller General of Accounts., Ministry of Finance.

The statements of transactions proposed to be adjusted on proforma basis received in Railway Board's office are consolidated and one consolidated  list indicating the amount in respect of each item indicating nature thereof and the Accounts Officer?(Non-Railway) with whom the same is adjustable, debit or credit as the case may be is sent to the Controller General of Accounts, Ministry of Finance. Simultaneously, copies of these statements are sent to  the Accounts Officer in whose books the transactions are adjustable. On approval of the proposal for proforma adjustments, CGA advises those Accounts Officers to accept the adjustments. The Railway accounts officers are advised by Railway Board to send all vouchers direct to the other Accounts Offices and obtain their acceptance. Thereafter, they send transfer certificates debiting/crediting Railway Board and carry out adjustments under final/service head in their account.

This is done to ensure adjustments of transactions pertaining to an year in that year's account. This is a necessity specially in cases where it is not possible to settle transactions through Reserve Bank such as interest on PF balances payment of dividend to General Revenue etc.

Write Back adjustment - Indian Railways

Write Back adjustment - Indian Railways

WRITE BACK ADJUSTMENTS IN INDIAN RAILWAYS

• What is Write back in Indian Railways lingo? 

• In Indian Railways lingo, Write Back means, at the time of condemnation of asset like rolling stock, the original cost of that asset will be write back from the source of finance for which originally used (normally “Capital” ) and debited to the Source of finance i.e., DRF – Depreciation Reserve Fund.

• For example, if the asset Diesel locomotive which is purchased at a cost of 35 Lakhs in the year 1965 and was put to condemnation in the year 2014, after expiry of its useful life period.  The Competent Authority gave its approval for such condemnation. 

• In the books of Zonal Railway, the write back entries (Journal entries )are posted by using CONTRA JVs.

    In the Capital Books  - CJV

    CAP -20-2113 -08(Rolling Stock)                             ( - ) Debit  - Rs. 35 Lakhs

       Transfer Railway Revenue           (00878243)              Debit  -  Rs. 35 Lakhs

    In the Revenue Books  - RJV

     DRF – 2113- 08  (Rolling Stock)             Debit   - Rs. 35 Lakhs

     Transfer Railway Capital (008782 44)       Credit   -  Rs. 35 Lakhs

·         There by, the Capital Account is reduced to that extent (because the asset is no longer in use and condemned) and the dividend liability also reduced correspondingly.

·         The DRF - Depreciation Reserve Fund Account is debited to that extent .  The logic is,  throughout the life period of employing the said Diesel Loco in Indian Railways, "Depreciation" on yearly basis is credited to the DRF (fund). 

·         Hence the amount Rs. 35 Lakhs was write back from Capital (by minus Debit/Credit) and added to DRF (by Debit).

·         Also the proceeds realized from the condemnation of Diesel Locomotive credited to DRF  by debit to Railways Fund in RBI/Nagpur (through RIB - Remittances Into Bank A/c)

·          The operation of Depreciation Account and policy of Depreciation in Indian Railways is entirely different from commercial organizations.  Instead of providing Depreciation on individual basis, the Railways is appropriation to DRF on entire block of assets employed in Indian Railways.  In this, there is no scientific policy in providing contributions to DRF and at large depend on available amounts at the Railways.

REVISED ESTIMATE

                          Revised Estimate: A revised estimate is prepared and submitted for the sanction of Competent Authority, as soon as it becomes apparent that the expenditure on a work or project is likely to exceed the amount provided therefor in the detailed estimate and in the case of construction of a new-line,  construction estimate. It should, unless otherwise ordered by the sanctioning authority, be prepared in the same form and the same degrees of detail as the original estimate, and should be accompanied by a comparative statement showing the excess or saving under each sub-head of account against the latest sanction. In cases where a supplementary estimate or a previous revised estimate has been sanctioned by the Railway Board, it should be made clear how the original sanction has been modified by such further sanction.

                         In cases, however, where the work is in an advanced stage and is likely to be completed before revised estimate can be got out, the excess may with the prior approval of the Competent Authority, be dealt with in the completion report of the work. The fact that a Competent Authority has permitted the regularization of excess over an estimate through completion report should invariably be intimated to the Accounts Officer.

                       Hence it is not possible to put every work under completion report as Engineering Code allow only in very exceptional cases where there is no time for preparation and submission of revised estimate.

                      However so far as Completion Estimate has concerned it is only prepared in respect with line construction, and open line works each estimated cost upto Rs.one crore and above vide para 17.1-E. It is prepared in supersession of a construction estimate or project abstract estimate as the case may be. Hence for the works where preparation of Revised Estimate is necessary it can not be replaced through Completion Estimate.

                Revised Estimate is prepared only when Estimated Cost deviated with actual cost as stated below:

(i) For Less Expenditure-- If the expenditure  is going to be held less than 20% of the Estimated cost.

(ii) For Excess Expenditure-- If the Expenditure is going to be held more than 10% of the estimated cost.

                  In  both the cases, revised estimate is prepared as stated earlier and submitted to Competent Authority, who have verified original detailed estimate than for obtaining approval.